The Transpacific Stabilization Agreement (TSA) said member lines were proposing a 1 September general rate increase (GRI) of not less than $600 per feu for all destinations in the US from Asia.
Lines cited strong cargo demand and high utilisation levels and rising inland transportation costs as the reason for the GRI.It is the latest in a series of rate increases, the most recent being another $600 per feu GRI on 1 August. However, lines have struggled to make the increases stick. Although TSA is claiming “modest revenue gains” year a report by Bimco last week said that spot rates from Asia to the US West Coast had actually fallen 14% between January and August this year.
“Lines have made modest revenue gains to date this year, but they continue to struggle in terms of returning to profitability,” “In most route segments they are operating at or near full capacity with little room for error in managing assets, so this increase is needed as a cushion to cover costs and assure service choice and reliability,” said TSA executive administrator Brian Conrad.
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