Trans-pacific Container Shipping Group Aims for Rise in Rates

Posted by Eric Haun
Wednesday, July 16, 2014
Photo: CMA CGM

Container shipping companies were urged to raise Asia-U.S. freight rates by at least $600 per 40-foot container (FEU) with effect from Aug. 1, their organisation TSA said on Wednesday.

Members of the TSA (Transpacific Stabilization Agreement) include 15 of the world's biggest container shipping lines such as Denmark's Maersk Line, a unit of A.P. Moller-Maersk , privately owned Switzerland-based Mediterranean Shipping Company (MSC), French privately held CMA CGM, China's COSCO, Korea's Hanjin Shipping and others.

According to TSA, members are seeing sustained third-quarter cargo demand across major commodity segments.

Spot freight rates are calculated and published every week by Shanghai Shipping Exchange. Last week rates for transport of 40-foot containers from Asia to U.S. West Coast stood at $3,648.

TSA said cost-cutting had been at the heart of carrier strategies in recent years, but that lines needed a rate structure that would encourage investment, draw equipment back into the market, cover rising inland transport and cargo-handling costs and enable carriers to broaden service offerings.

"Given current rate levels, TSA members believe that $600 per FEU is the minimum needed to meet those objectives," Brian Conrad, TSA executive administrator, said in a statement.

Freight rates plunged to unprofitable levels for most carriers in 2013 as a result of overcapacity in the market.

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 due to competition rules, and the ban took effect in 2008.

(Reporting by Ole Mikkelsen; editing by Jane Baird)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Container Ships

Long Beach Cargo Continues to Climb

Cargo container traffic rose 7.3 percent in September at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest September since 2007,

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

Maritime Broadband Opens Office in Greece

Maritime Broadband has expanded its worldwide footprint by opening an office, Maritime Broadband Hellas, in Athens, Greece. The new office addresses the growing

News

PES to Begin Operating Benzene Terminal in November

Philadelphia Energy Solutions plans to start operating a new benzene offtake terminal next month at its 335,000-barrel-per-day refinery in Philadelphia, two people familiar with the plans said.

Coast Guard Foundation to Honor USCG in Miami

The Coast Guard Foundation, a nonprofit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Logistics

Long Beach Cargo Continues to Climb

Cargo container traffic rose 7.3 percent in September at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest September since 2007,

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

New Intermodal Rail Service from PortMiami

Florida East Coast Railway (FECR) and PortMiami, through a strategic alliance, are offering the Sunshine Gateway service, which includes on-dock intermodal rail capabilities.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3141 sec (3 req/sec)