Container Lines Plan Pacific Freight Rate Rise

Posted by Eric Haun
Wednesday, April 30, 2014
Photo courtesy CMA CGM

Container shipping lines have agreed to raise Asia-U.S. freight rates by $300 per 40-foot container (FEU) to west coast ports of the U.S. and by $400 to all other ports in the U.S from May 15.

The increase was agreed by companies in the Transpacific Stabilization Agreement (TSA) which also adopted a $400 per FEU peak season surcharge effective June 15, the TSA said in a statement.

The TSA groups 15 of the world's biggest container shipping lines, including Denmark's Maersk Line, a unit of A.P. Moller-Maersk, privately owned Swiss-based Mediterranean Shipping Company (MSC), French privately held CMA CGM, China's COSCO and South Korea's Hanjin Shipping .

The container shipping industry was hit hard by the global economic downturn since 2008 and only a few lines made a profit in 2013 due to supply outstripping demand.

Spot freight rates are calculated and published every week by Shanghai Shipping Exchange and the surcharges added to that.

Last week rates for transport from Asia to the U.S. West Coast stood at $3,844 per 40-foot container and $6,656 to ports on the east coast.

"Carriers continue to play catch-up on rates, which have been effectively stagnant since 2011," TSA Executive Administrator Brian Conrad said.

Transpacific container lines are experiencing a surge in eastbound bookings that began in January and is expected to continue into the second half of 2014, with vessel utilization in the mid-90 percent range via the West Coast and in the high-90 percent to full range to the East and Gulf Coasts, the TSA says.

Founded in 1989, the TSA calls itself a "research and discussion forum of major container shipping lines" serving the trade from Asia to the United States.

Liner shipping was previously organised in similar groups called "liner conferences" which met to discuss market conditions, freight rates and other common concerns.

But the European Union decided in 2006 to ban the practice as against competition rules and the ban took effect in 2008.

(Reporting by Ole Mikkelsen; Editing by Robin Pomeroy)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Austal Starts Next US Littoral Combat Ship

Austal and the U.S. Navy held a keel-laying ceremony today for the future USS Manchester (LCS 14), marking the first significant milestone in its construction.

Conference to Delve into Hybrid Power & Propulsion

The first international Hybrid Marine Power & Propulsion Conference will be held at the RNLI Lifeboat College, Poole UK from October 6-8, 2015.   Shock Mitigation

Container Ships

Port of LA to Start Yusen Terminal Improvements

Project will enhance wharf, rail and yard infrastructure to optimize terminal operations   The Port of Los Angeles will begin construction this summer on a two-year

HHI Delivers 14,000 TEU Box Ship to Seaspan

Seaspan Corporation accepted delivery of a 14,000 TEU containership, the YM Witness. The new containership, which was constructed at Hyundai Heavy Industries Co.

Jebel Ali Port Wins Top Industry Award

DP World’s flagship Jebel Ali Port has been recognized for excellence in container terminal operations at the first ever Navis Inspire Awards 2015. HE Sultan Ahmad Bin Sulayem,

News

HMS Queen Elizabeth Powers to Life

U.K. Royal Navy aircraft carrier HMS Queen Elizabeth has produced power from her onboard diesel generators (DGs) for the first time, marking a significant stage in the program.

Maritime, Migration Heads Pledge Joint Action

The heads of the International Maritime Organization (IMO) and the International Organization for Migration (IOM) on Monday, June 29 reaffirmed their commitment

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Logistics

Multimodal Freight Bill Introduced in US Senate

Cantwell, Booker, Murray, Markey introduce freight investment legislation aiming to eliminate chokepoints at critical highway, rail, port and intermodal facilities to support economic growth,

Crowley Acquires 4,300 Pieces of Liner Equipment

In response to continuing high customer demand, Crowley Maritime Corporation’s liner services group has placed orders for additional equipment, including hundreds

ContainerTug B.V. Releases Two New Models

Young Dutch ship design, engineering and construction company ContainerTug B.V. follows on the introduction of the ContainerTug 600S early last year with the release

 
 
Maritime Contracts Maritime Security Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2127 sec (5 req/sec)