The Transpacific Stabilisation Agreement (TSA) is moving away from general rate increases (GRI) to contract rate objectives for 2015 – 2016 annual contracts.
TSA is recommending its members seek minimum rates of $2,000 per feu from North Asia to the US West Coast and $3,500 per feu from North Asia to the US East Coast. From Southeast Asia to the US West Coast the recommended minimum is $2,150 per feu and $3,650 to the US East Coast.
There will varying levels minimum for different inland destinations for example North Asia to Chicago would be $3,900 per feu and from Southeast Asia $4,050 per feu.
For 20-foot boxes rates will be assessed at 90% of the feu rate.
“Carriers feel an urgent need in the current market environment to view pricing differently,” said TSA executive administrator Brian Conrad. “Rate minimums are an effort to better reflect actual costs of service, rather than simply recommending a specific increase to whatever baseline rate is in the tariff based on short-term supply-demand conditions.”
TSA has rolled out multiple GRIs this year but with little success in raising overall rate levels.
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