U.S.-Asia Container Lines Adjust Hay, Agri-Products Rates


Oakland, California / May 29, 2007 – Member shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) say they intend to raise freight rates for hay, and adopt a second-stage increase for dry agri-products cargoes, as part of the WTSA’s 2007 revenue and cost recovery program. Lines said the increases are needed to address ongoing higher cargo handling, equipment and other operating costs in the transpacific market.

Effective July 1, 2007, individual member carriers plan to raise hay rates by US$100 per 40-foot container (FEU) from California ports, and by $200 per FEU from Pacific Northwest ports.

Effective August 1, 2007, WTSA lines say they will increase agri-products rates by US$100 per FEU and $80 per TEU for inland point and minilandbridge intermodal shipments, and by $50 per FEU and $40 per TEU for port-to-port cargo. The increase applies to a list of commodities including, but not limited to, soybeans and related products; cotton by-products; grain and grain products; and peas beans and lentils. Non-seasonal cargoes include meal, flour, corn products, starches, animal feed (except pet food), seeds and food additives.

An earlier agri-products increase had been taken in April. Lines had divided a larger scheduled increase into two parts to lessen the impact to customers throughout the year.

WTSA is a voluntary discussion and research forum of 10 major container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.

WTSA members include:

APL, Ltd.
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag Lloyd AG

Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd. (K Line)
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Inc.
Yangming Marine Transport Corp.

Contact: Niels Erich
T: (415) 543-6048
F: (415) 358-4540
E: nerich@pacbell.net