News
Transpacific Stabilization Agreement (TSA) lines are preparing for a new round of 2015 service contract negotiations, taking into consideration of inland rail and truck capacity shortages and sharply higher mandated fuel costs beginning in 2015.
On rates, TSA is recommending that its members seek to conclude 2015-16 contract rates, at levels at or above $2,000 per 40ft to the West Coast and $3,500 to the East Coast from all North Asia ports. For Southeast Asia, the objective will be to achieve rates at or above $2,150 to the West Coast and $3,650 to the East Coast. Intermodal base rates will vary by destination, but as an example TSA is proposing 2015 CY rates to Chicago-area ramps to be at least $3,900 from North Asia and $4,050 for Southeast Asia.
Member lines have additionally modified TSA's formula for other equipment sizes with respect to minimum rates. Base rates for 20-foot containers will be assessed at 90% of FEU rates. High-cube FEU base rates, will be charged a premium of at least $50 over the 40ft standard rate for West Coast and $100 over the 40ft rate for all other destinations.
The new recommended contract rates will also be subject to the addition of a low sulfur fuel cost recovery component, which TSA is currently studying and expects to announce in the next several weeks.
