WTSA Confirms Rate Hikes

According to the Westbound Transpacific Stabilization Agreement (WTSA), a sector-by-sector assessment of freight rates from the United States to Asia has been completed, and the WTSA says its member container lines have confirmed plans to increase freight rates. Most increases are slated to take effect Nov. 1, 2011.

The following commodities will see rate increases: recovered fiber, metal scrap, plastic scrap, hay, hides, forest products, protein cargo, agricultural products, chemicals, clay, cotton, freight of all kinds (FAK) cargo and refrigerated cargo.

Brian Conrad, WTSA’s executive administrator, says, “Rate erosion over time has been dramatic for many of the highest-volume cargoes moving in the U.S.-Asia trade. After various postponements of these increases, lines could not wait any longer and they want to avoid any confusion in the marketplace – they intend to apply the recommended increases and reverse the downward trend in freight rates, beginning November first.”

The WTSA is a voluntary discussion and research forum of 10 ocean and intermodal container shipping lines serving ports and inland points in the U.S. to destinations throughout Asia. WTSA members include APL Ltd., Hyundai Merchant Marine Co. Ltd., COSCO Container Lines Ltd., K Line, Evergreen Line, N.Y.K. Line, Hanjin Shipping Co. Ltd., Orient Overseas Container Line Ltd., Hapag Lloyd AG and Yang Ming Marine Transport Corp.