Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) said Monday they are recommending a further round of incremental rate increases for dry and selected refrigerated commodities, as part of a comprehensive rate restoration effort throughout 2012.
The adjustments, scheduled to take effect May 15, will raise dry commodity rate levels by $50 per FEU from Pacific Southwest ports (Los Angeles, Long Beach and Oakland), and by $100 per FEU for all other cargo, moving via all-water or intermodal service from Pacific Northwest ports, from inland U.S. points and from the U.S. East and Gulf coasts.
WTSA lines will also seek increases of $200 per FEU for refrigerated rates for French fries, frozen vegetables and miscellaneous refrigerated cargoes not covered under commodity-specific programs, for all origins and Asian destinations.
WTSA Executive Administrator Brian Conrad said successive rate adjustments taken in recent months have been modest and aimed at incrementally restoring rates in the trade to compensatory levels after a period of significant erosion.
He added the diverse and often seasonal nature of westbound traffic makes it necessary to adopt multiple increases for cargo moving under contract throughout the year.
WTSA members include APL, COSCO Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, NYK Line, OOCL, and Yang Ming. — Eric Johnson