<B>Shipping Line Group Making Changes</B>

The Westbound Transpacific Stabilization Act announces that starting the first of next year shipping lines under the agreement are adopting a $40 chassis charge to cover a portion of lease, purchase, maintenance and repair, licensing and registration, repositioning, administration, insurance and other costs associated with carrier-provided chassis.

Carriers stressed that the chassis charge is intended to address direct chassis-related costs, as distinct from detention of a unit beyond a reasonable time period.

The WTSA also announced that the carrier group has revised the original calculation formula to reflect current costs; more quickly adjust to recover rising costs for carriers; and make it simpler for customers to predict charge adjustments.

The bunker charge will take effect Jan. 1 for cargo moving under standard carrier tariffs. It will take effect starting Jan. 1 for new service contracts, including those signed during the remainder of this year and, from Jan. 1 forward, on the date each contract commences. The charge will be applied to all contracts by no later than May 1.

According to the WTSA most customers are expected to see an initial increase in the charge they pay by about $45-$65 per 40-foot container, and equivalent amounts for other equipment sizes.

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November 2000
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