Los AngelesAsia-U.S. container lines in the Transpacific Stabilization Agreement (TSA) are poised to levy a general rate increase (GRI) next month.

In a statement, TSA said that member-lines, anticipating strong pre-Lunar New Year shipments from Asia to the U.S., are proposing a US$600-per-40-foot-container rate increase for all origins and destinations, to take effect on February 9, 2015.

The increase is intended to ensure that carrier costs are adequately recovered coming out of the slower winter season, it added.

“This is a very challenging operating environment for transpacific container lines,” said TSA executive administrator Brian Conrad, “and it is critical to maintaining service levels that they not leave money on the table during the Lunar New Year period.”

Conrad emphasized that while some carriers have reported profitability in the trade in recent quarters, it has come almost entirely from cost-cutting as revenues have shown only marginal improvement over time.

TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S. These carriers include APL, China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanjin Shipping Co., Hapag-Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Line, Mediterranean Shipping Co., Nippon Yusen Kaisha, Orient Overseas Container Line, Yangming Marine Transport, and Zim Integrated Shipping Services.

Photo: US FDA

You May Also Like
Port operator endorsement required for ancillary service providers accreditation

Port operator endorsement required for ancillary service providers accreditation

The port operator’s written endorsement is now required when ancillary service providers…

PCCI seeks stronger govt, private sector integration

The Philippine Chamber of Commerce and Industry is pushing for stronger integration…
Maritime companies confident in AI’s future, but…

Maritime companies confident in AI’s future, but…

Maritime companies may be confident that AI will have a big role…

PPA new policy on standardized tariffs, fees not retroactive

The Philippine Ports Authority’s new policy on the computation of port tariffs…