News
The Transpacific Stabilization Agreement (TSA) announced Wednesday that it would dissolve on February 8, 2018 after almost 30 years of activities as a research and discussion forum of major ocean container shipping lines that serve the transpacific trade in both directions, between Asia and the U.S.
TSA was established in 1989 and, over time, replaced a more rigid rate conference system in the Asia-U.S. market. It aimed to stabilize both rates and service levels, and thus provide an incentive for shipowners to keep vessels in a trade during downturns; invest in long-term vessel and facilities in ''boom and bust'' cycles.
The closure of TSA represents the end of an era in which a rate agreement has exercised its ability to influence rate setting on the major line shipping trades.
