16.11.08IADA Unveils 2017 Business Plan

The Intra-Asia Discussion Agreement (IADA) has recently unveiled a plan for restoring freight rates for containerized shipments that its members will move in 2017 to and from Japan. Its guideline indicates that for one-year contracts, the consortium will implement a freight rate restoration of US$200 per TEU and $400 per FEU on April 1. For six-month services, rates will be raised in two steps - or on April 1 and Oct. 1 - by $100 per TEU and $200 per FEU each. For shipments to and from other Asian economies, freight rates will be restored three times - in the second (April-June), third (July-September) and fourth (October-December) quarters - by $50 per TEU each.

The IADA has undertaken a similar freight rate restoration plan this year. In addition, it increased freight rates by $50 per TEU and $100 per FEU on Oct. 15 and by as much on Nov. 1. For containers from Vietnam to Japan, moreover, fares were hiked on Nov. 15 by $50 per TEU. The discussion agreement has also revealed that it will raise rates on Dec. 1 for shipments from Fujian Province in southern China to Japan by $50 per TEU and on Jan. 2, 2017 for those to Japan and Myanmar from other countries and regions in Asia by $100 per TEU.