The Transpacific Stabilization Agreement (TSA) announced it is moving ahead with a second phase of its revenue recovery plan.
“On July 15, TSA lines will implement a previously announced second-stage US$200 per 40-foot container (FEU) general rate increase (GRI) and peak season surcharge (PSS) for cargo moving to Pacific Southwest ports in California,” the trade association said in a statement.
The move, it added, comes after the “initial success of a July 1 revenue improvement effort, and by recent public reassurances that cargo will continue moving as U.S. West Coast longshore labor negotiations extend past the contract deadline.”
The increase follows a similar increase taken on July 1. While the revenue increase to the West Coast was split into two stages, TSA carriers applied a full $400 per FEU in July for cargo moving to the Pacific Northwest, U.S. East and Gulf Coasts, and via intermodal to inland U.S. points.
In addition, “given current unsustainable freight levels overall and the likelihood of continued strong demand through August,” TSA is recommending a further August 1 GRI, with the guideline amount to be determined and announced in mid-July.
“With the overall uncertainty already seen in the eastbound freight market, the central issue for shippers and carriers alike is maintaining service and schedule reliability,” explained TSA executive administrator Brian Conrad. “All partners in the supply chain need to be able to respond quickly and cover contingencies in the event of cargo surges or bottlenecks. And they need to know that their costs are covered in the process.”
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. Its members include APL, China Shipping Container Lines, CMA-CGM, Cosco Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Line, Mediterranean Shipping Co., Nippon Yusen Kaisha, Orient Overseas Container Line, Yangming Marine, and Zim Integrated Shipping Services.
Photo: keepitsurreal
