Shanghai: Transpacific shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) plan to raise metal scrap rates by $100 per feu and $80 per teu on port-to-port cargo and West Coast/East Coast local door moves to Asia. The increase, effective February 15, 2007, has been attributed to rate erosion during 2006 and rising inland costs. WTSA will also increase rates for inland point or minilandbridge intermodal cargo by $150 per feu and $120 per teu.
"Despite continued strong industrial demand for recycled scrap in Asia, rates remain low to the point that some carriers in the trade have stopped soliciting scrap shipments to certain destinations - most notably in China - because current rates do not adequately cover transport, equipment and cargo handling costs," WTSA said in a statement, adding "This is particularly true for intermodal U.S. cargo, with westbound carriers anticipating rail rate increases of as much as 20% in 2007."
WTSA members include: Hyundai Merchant Marine, COSCON, "K" Line, Evergreen Marine, NYK, Hanjin Shipping, OOCL and Yangming Marine Transport. [10/01/07]
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