The container shipping lines participating in the Westbound Transpacific Stabilization Agreement (WTSA), that ply the trade between the US and Asia, have recommended a new round of dry cargo rate increases effective from July 1.
The group proposes to raise existing rates by $ 50 per FEU from California ports and by $100 per FEU for all other intermodal and all-water shipments, with proportionate increases for other equipment sizes and cargo otherwise rated.
According to WTSA executive administrator, Mr Brian Conrad, the relatively modest increases are part of an ongoing incremental strategy throughout 2012 to restore rates to compensatory levels that will adequately meet service demand, attract container equipment into the trade, and reverse steep declines in revenues and carriers’ overall financial health.
He added that the rate hikes were chiefly focused on commodity segments where rates have fallen the furthest and/or have not taken increases in previous rounds.
WTSA members include APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Line, NYK Line, Hanjin Shipping, Orient Overseas Container Line, Hapag-Lloyd and Yang Ming Marine Transport Corp.