WTSA calls for rate increase
The Westbound Transpacific Stabilization Agreement (WTSA) has proposed increasing freight rates by $50 per 40-foot container (FEU) from California ports and $100 per FEU for all other intermodal and all-water shipments, with proportionate increases for other equipment sizes and cargo otherwise rated.The WTSA is proposing the rate increase to go into effect on July 1, 2012.
Brian Conrad, WTSA’s executive administrator, says the increases are part of an ongoing incremental strategy throughout the year 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.
Conrad adds that increases are primarily focused on commodity segments where rates have fallen the farthest and/or have not taken increases in previous rounds.
WTSA is a voluntary discussion and research forum of 10 ocean and intermodal container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia. WTSA members include APL, Hyundai Merchant Marine Co., COSCO Container Lines., K Line, Evergreen Line, N.Y.K. Line, Hanjin Shipping Co., OOCL, Hapag Lloyd AG and Yang Ming Marine Transport Corp.
