12.11.30TSA to Integrate WTSA to Cut Administrative Costs

The members of the Transpacific Stabilization Agreement (TSA) have filed an amendment with the U.S. Federal Maritime Commission (FMC) that would expand TSA's scope to include the entire transpacific round trip, including the westbound trade. It is expected that once the amendment becomes effective, the lines would suspend activities of the existing U.S.-Asia carrier group, the Westbound Transpacific Stabilization Agreement (WTSA). TSA filed the amendment for a 24-month trial period, subject to review at the end of that time.

Streamlining the agreements and cutting cost is the primary purpose of the filing, explained TSA Executive Administrator Brian Conrad. Maintaining separate carrier agreements, each with its own meetings, dedicated carrier staff support, compliance requirements and administrative overhead is less justifiable than in the past, especially given the sustained low-revenue environment seen in recent years.