News
Cargo demand for Asian containerized imports has remained strong through the typically slower winter season and heading into the Lunar New Year holidays, according to container line data collected by the Transpacific Stabilization Agreement (TSA).
TSA carriers report consistently full sailings into the Pacific Northwest and via all-water Panama and Suez routes to the U.S. East and Gulf Coasts, as well as 95% utilization or better through California ports hardest hit by congestion. This suggests an overall strong market apart from recent cargo diversion trends, and is consistent with broader indicators of economic growth affecting the Asia-U.S. trade over 2014.
Against a backdrop of this robust Asian imports, TSA lines move forward with recommended rate increases and adjust May 1 contract rate minimums to reflect strong demand, rising costs.
TSA reaffirmed support for a recommended US$600 per 40-foot container (FEU) increase in rates across the board, effective February 9, 2015, and indicated that it will follow with a second $600 per FEU increase on March 9, with an April increase likely to follow, in an amount to be determined and announced later.
Member lines have also recommended upward adjustment of previously announced guideline minimum service contract rates to reflect increases of $300 per FEU for the U.S. East/Gulf Coast minimum, and $200 per FEU for the Chicago CY intermodal minimum. Revised minimum contract rate levels are as follows, with proportionate levels for other equipment sizes:
U.S. West Coast
- $2,000 per FEU from North Asia_$2,150 per FEU from Southeast Asia
U.S. East/Gulf Coasts
- $3,800 per FEU from North Asia_$3,950 per FEU from Southeast Asia
Inland to Chicago CY
- $4,100 from North Asia_$4,250 from Southeast Asia
Intermodal rates to all other inland point CY destinations will be set at a minimum $1,000 per FEU above May 1, 2014 all-in levels. All minimum rates are based on a Q2 2015 bunker charge level, to be published in late February.
