News
As container shipping lines face estimated 2011 losses in the billions of dollars across their global networks, including the transpacific trade, member carriers in the Transpacific Stabilization Agreement （TSA） have reaffirmed their commitment to restore rate levels going into 2012-13 contract talks.
TSA carriers are recommending a second, across-the-board guideline rate increase of US$300 per FEU, effective March 15, 2012, following on an initial increase successfully implemented on January 1. The March general rate increase （GRI） is intended to bring Asia-U.S. freight rates back up to near 2011 contract levels, establishing a baseline for upcoming contract negotiations. TSA cited recent investor filings and press reports affirming industry losses, and stress that a further increase is critical to carrier viability going forward.
The agreement's 2012-13 recommended guideline revenue program, to take effect no later than May 1, 2012 for all tariff items and service contracts, will raise rates by a minimum of an additional $500 per FEU for cargo to the U.S. West Coast, and a minimum of $700 per FEU for all other destinations. TSA lines also indicated that further additional revenue and cost recovery initiatives would be considered for later in the year, after a review of market conditions and outlook for the second half of 2012.
Lastly, carriers reaffirmed the need for 2012 service contracts to apply per formula rate increases for all equipment sizes, and to provide for collection of full, floating fuel surcharges and other applicable cost-based ancillary charges.
