Asia–U.S. Container Lines to Introduce Freight Increase

The Transpacific Stabilization Agreement (TSA) informs that member container shipping lines are proposing an across-the board general rate increase (GRI) of at least US$600 per 40-foot container (FEU) to all destinations, effective September 1, 2014 Carriers had filed increases in their individual tariffs in late July and subsequently began notifying customers directly.

TSA lines said the planned GRI follows strong cargo demand and high vessel utilization levels in recent months, which forward bookings suggest will continue through September. With equipment, inland transport and other cargo handling costs rising steadily, carriers see higher baseline rates going into 2015 as essential to maintaining adequate service levels over time.

“Lines have made modest revenue gains to date this year, but they continue to struggle in terms of returning to profitability,” said TSA executive administrator Brian Conrad. “In most route segments they are operating at or near full capacity with little room for error in managing assets, so this increase is needed as a cushion to cover costs and assure service choice and reliability.”

TSA Members:
APL Ltd.                       

China Shipping Container Lines                         

CMA-CGM                                  
COSCO Container Lines, Ltd.        

Evergreen Line                              

Hanjin Shipping Co., Ltd.             
Hapag-Lloyd AG                           

Hyundai Merchant Marine Co., Ltd.

Kawasaki Kisen Kaisha, Ltd. (K Line)

Maersk Line

Mediterranean Shipping Co.

Nippon Yusen Kaisha (N.Y.K. Line)

Orient Overseas Container Line, Ltd.

Yangming Marine Transport Corp.

Zim Integrated Shipping Services

TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S.

www.tsacarriers.org