Monday, October 12, 2009

The Debts of the World: International Shippers Raise Rates for 2010

Carriers in the Transpacific Stabilization Agreement (TSA) adopted voluntary guidelines in an effort to combat widespread losses that ravaged the sector for much of 2009. These are carriers serving the critical East Asia - US West Coast trade with big name members such as Evergreen, China Shipping, and Nippon Yusen Kaisha.

Specific elements of the TSA revenue program, to take effect with renewal of current contracts – most of those over May and June 2010 – include:

-- A general rate increase (GRI) of US$800 per 40-foot container (FEU) for local West Coast and Group 4 Western coastal states cargo, and US$1,000 per FEU for intermodal and U.S. East and Gulf Coast all-water cargo, with per formula increases for other equipment sizes.

-- A $400 peak season surcharge (PSS), effective from August 1, 2010, to address higher cargo handling, equipment positioning and contingency planning costs during periods of peak cargo volume.

-- Full collection of fuel and other accessorial charges.

Will this lead to a recovery in the shipping sector? Sector leaders are cautiously optimistic.
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