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Pacific Carriers Reconfirm Export Rate Hikes

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Date:2011-11-11
Plan to implement rate increases of $100 to $200 per FEU, starting Nov. 1

Carriers in the westbound Pacific trades reconfirmed their intention to implement export rate increases generally of $100 to $200 per 40-foot container effective Nov. 1.

The Westbound Transpacific Stabilization Agreement, a discussion group of 10 carriers in the export trade from the U.S. to Asia, posted the proposed commodity-specific rate increases on its website.

WTSA announced on Sept. 30 its intention to post the specific rate hikes for more than a dozen commodities.

Rate hikes range from $100 per-FEU for commodities such as metal scrap, hay and ¡°freight all kinds¡± to $200 per FEU for hides and lumber. The guideline for frozen beef is a rate increase of $150 per-FEU.

Wastepaper, a low-value, low-margin product, was assigned a proposed rate hike of $50 per-FEU.

The WTSA is a discussion agreement with no enforcement powers, so it posts voluntary guidelines, which the individual member lines may or may not choose to implement in service contracts with their customers. ¡°Rate erosion over time has been dramatic for many of the highest-volume cargoes moving in the U.S.-Asia trade, said Brian Conrad, WTSA¡¯s executive administrator.

-- Contact Bill Mongelluzzo at bmongelluzzo@joc.com. Follow him on Twitter @billmongelluzzo.

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