Shipping Lines Call for Rate Hikes

Members of the TSA look to implement rate increase by Nov. 15, 2013.

October 23, 2013
Recycling Today Staff
Ferrous Legislation & Regulations Nonferrous Paper Plastics

Shipping lines in the Transpacific Stabilization Agreement (TSA) Westbound section are calling for rate increases in a number of commodity categories that the shipping lines say have seen rate erosion over the past several months.

To compensate for rate declines, the TSA Westbound has adopted minimum guideline increases of $100 per 40-foot container (FEU) via U.S. West Coast ports, $200 per FEU via East and Gulf Coast ports and $100 per FEU for intermodal shipments for six commodities: recovered fiber, scrap metal, plastic scrap and resin, lumber and logs, hay and agricultural products. The increases are slated to go into effect by Nov. 15, 2013. In the case of recovered fiber, shipping lines also have  adopted guideline minimum rate levels via California ports that may lead to increases above the minimum levels.

Brian Conrad, TSA executive administrator, says the guideline is intended to be flexible, reflecting actions already taken by some carriers in October and different carrier views on the levels of increase achievable in different lane segments. “At the end of the day, member lines are looking for increases of at least the levels in the guideline GRI (general rate increase),” he says. “Whether they achieve the goal by building on recent individual increases and the extent to which they pursue GRIs beyond the minimum levels will be guided by market conditions and each carrier’s strategic objectives.”

Members of the TSA include APL Ltd., K Line, China Shipping Container Lines, Maersk Line, CMA-CGM, Mediterranean Shipping Co., COSCO Container Lines, Ltd., Nippon Yusen Kaisha, Evergreen Line, OOCL, Hanjin Shipping Co., Yangming Marine Transport Corp., Hapag-Lloyd AG and Zim Integrated Shipping Services.