WTSA Hikes Freight Rates

The Westbound Transpacific Stabilization Agreement is recommending member lines increase general rat, 2010 for dry cargo rates.

In announcing the recommendation, the WTSA notes that while cargo demand continues to increase in the U.S.-Asia freight market, transpacific freight rates remain depressed, while container lines seek to boost revenues.
Rate increases the WTSA are calling for are $100 per 40-foot container and $80 per 20-foot container via the ports of Los Angeles and Long Beach; and by $150 per FEU and $120 per TEU for all other dry cargo, including other West Coast ports, all-water shipments via the U.S. East and Gulf Coasts, and intermodal moves.

WTSA lines indicated that the February adjustments are part of a larger 2010 revenue program which is to include quarterly increases throughout the year as market conditions dictate.

“Carriers face a very difficult business environment in 2010,” said Brian Conrad, WTSA executive administrator. “Westbound cargo is going to have to make a greater proportionate contribution to overall sailing costs, if lines are to keep pace with cargo handling, equipment management, documentation and other operational requirements.”
Members of the WTSA include: APL Ltd., Hyundai Merchant Marine Co. Ltd., COSCO Container Lines Ltd., Kawasaki Kisen Kaisha Ltd., Evergreen Line, Nippon Yusen Kaisha, Hanjin Shipping Co. Ltd., Orient Overseas Container Line Inc., Hapag Lloyd AG, and Yangming Marine Transport Corp.