Member container lines in the Transpacific Stabilization Agreement (TSA) issued a recommendation for a further USD 1,000-per-40-foot container (FEU) general rate increase (GRI) for all origins and destinations.
According to TSA members, the proposal reflects stronger than expected holiday traffic and related service demands.
The recommended GRI is to take effect on December 15, 2014.
TSA cited press reports of double-digit import growth in September and October, and forecasts of continued market momentum through the remainder of the year.
Namely, the holiday retail season is likely to extend into January via gift cards and post-holiday sales promotions.
“With rates as low as they have been since 2011,” said TSA Executive Administrator Brian Conrad, “lines have steadily reduced and consolidated services; they continue to play catch-up as demand ramps up beyond what had previously been expected.”
To remind, TSA members just recently proposed introduction of congestion charges of up to USD 1,000 per 40-foot container (FEU) for cargo moving via U.S. West Coast ports, effective November 17, 2014, in response to labor-related terminal delays.
The proposal was opposed by numerous shipping bodies, including the US Federal Maritime Commission, causing numerous shipping lines to back down from the decision.
The intention has been revived on couple of occasions as carriers test the water before they resort to unpopular measures.
World Maritime News Staff