Major US-Asia container lines in the Westbound Transpacific Stabilization Agreement are calling for a freight rate increase of $50 per 40-foot containers and $40 for 20 foot containers for recovered fiber. Container lines are looking to implement the increase by Sept. 1, 2007.
According to press reports the proposed increase applies to both port-to-port and intermodal shipments, and follows an earlier increase taken last April.
Sudden cargo growth in the US-Asia market due to a weaker dollar has put pressure on carriers to make container equipment available across many commodity segments.
At the same time, a continuing cargo and equipment imbalance favoring inbound traffic requires shipping lines to optimize equipment allocation for faster turns and improved utilization. The result has been upward pressure on rates, especially as low-rated, high-volume traffic such as wastepaper competes with other cargoes for available equipment.
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