News
Transpacific Stabilization Agreement (TSA) lines have announced a phased increase in rates and a package of 2016-17 service contract guidelines.
First, TSA lines are recommending adjustments to minimum rates across the board, on December 1, 2015 and on January 1, 2016.
For December 1, the lines will be seeking to restore the lowest current market rate levels to at least US$950 per 40-foot container (FEU) to the U.S. West Coast; $1,700 per FEU to the U.S. East and Gulf Coasts; and $2,950 per FEU for intermodal moves to key Chicago-area inland point destinations.
For January 1, TSA members are recommending that a general tariff rate increase be filed in the amount of $1,200 per FEU to the West Coast and $1,600 per FEU to the East and Gulf Coasts. Carriers say their objective is to establish more compensatory baseline revenue levels as they head into service contract negotiations, and in advance of the Lunar New Year holiday in Asia that begins in early February.
TSA has also finalized its 2016-17 service contract program, which will focus on revenue improvement through both rate and non-rate items. For all 2016-17 service contracts, most of which take effect on May 1, TSA lines are recommending longer-term minimum rates of $1,700 per FEU to the West Coast, and $2,900 per FEU to the East and Gulf Coasts.
In addition, the contract program will include adjustments to non-rate charges and practices in areas such as absorption of chassis costs; free-time allowances; port and rail demurrage charges; equipment detention and per diem; full recovery of current and projected trucking costs; intermodal pricing; credit policies; and contract boiler plate terms.
