WTSA Lines Extend 2009-10 Rate Restoration Effort


Oakland, CA / November 3, 2009 – Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) are proposing a new series of general rate increases (GRIs) on December 1, 2009 and January 15, 2010, that will affect all dry and refrigerated cargoes to all Asia destinations. The move follows a similar schedule of GRIs which took effect last September 1, and are part of a broad effort  to restore rates to more compensatory levels that will help maintain service levels in the U.S.-Asia trade.  

Effective December 1, WTSA lines have recommended increases to dry cargo rates – including rates for commodities exempt from tariff filing – in the amounts of US$100 per 40-foot container (FEU) and $80 per 20-foot container (TEU) for cargo originating at the ports of Los Angeles and Long Beach on the U.S. West Coast; 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.

On January 15, 2010, WTSA lines are recommending a GRI for refrigerated cargo, of $250 per FEU and by $200 per TEU for all U.S. West Coast shipments, and by $300 per FEU and $240 per TEU for intermodal and U.S. East/Gulf Coast all-water cargo.

“Transpacific carriers continue to see their fixed operating costs rise as freight rates decline in both directions,” said executive administrator Brian M. Conrad. “The headhaul trade from Asia can’t subsidize the outbound segment, credit remains tight and lines have already scaled back on vessels, port calls, routes and back office functions. The only way carriers can survive financially, meet rising U.S. export demand and maintain adequate service levels is through improved revenues.

WTSA is a voluntary discussion and research forum of 10 major ocean and intermodal 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