Westbound Transpacific Stabilization Agreement
U.S.-Asia Container Lines to Raise Freight Rates for Cargo Not Covered by Specific Increases
Oakland, CA / January 20, 2005 – Shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) are recommending a rate increase of US$200 per 40-foot container (FEU) and $160 per 20-foot container (TEU) for all US-Asia cargoes not covered under separate, commodity-specific rate programs. The increase is to take effect March 1, 2005.
Commodities already covered under existing rate programs or currently under separate review, and thus exempted from the ‘cargo not otherwise specified (NOS)’ increase, include:
Exempt commodities (wastepaper, forest products, metal scrap)
Hay
Soybeans, peas, beans and lentils
Dried fruit and nuts
Hides
Clay
Cotton
Chemicals and resins
Onions in dry containers
Refrigerated commodities
Plastic scrap
Non-refrigerated agricultural products other than soybeans, peas, beans and lentils are already scheduled to take a previously announced $200 per FEU/$160 per TEU increase on March 1, which will go forward as planned.
Both scheduled increases represent the continuation of an overall rate program begun in 2004 to help address rising operating costs, equipment imbalances and system-wide infrastructure congestion outside carriers’ control.
WTSA is a voluntary discussion and research forum of 13 major container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.
WTSA members include:
American President Lines, Ltd. Kawasaki Kisen Kaisha, Ltd. (K Line)
China Shipping Group Mitsui O.S.K. Lines, Ltd.
COSCO Container Lines, Ltd. Nippon Yusen Kaisha (N.Y.K. Line)
Evergreen Marine Corp. (Taiwan), Ltd. Orient Overseas Container Line, Inc.
Hanjin Shipping Co., Ltd. P&O Nedlloyd Ltd./B.V.
Hapag Lloyd Container Linie Yangming Marine Transport Corp.
Hyundai Merchant Marine Co., Ltd.
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