The Transpacific Stabilization Agreement (TSA) has recommended a general rate increase (GRI) of US$400 per feu to come into force on November 15.
The carriers are very confident to implement full quantum GRI on November 15th due to:
- High loading factors of 95-105% to USWC, and 90-95% to USEC.
- Carriers have withdrawn around 10-15% of space on their sailings going to USWC, and 20-30% of space on their sailings going to USEC via AWS.
- Chinese New Year in 2014 will come early, and will contribute to the volume of shipments starting on December.
- Therefore, there would be tight space during Mid December till Mid January.
The carriers know that the next 2 weeks after the November 15th GRI will have less bookings, and they are willing to maintain the rates at this level because they expect another GRI/PSS either on December 15th or January 1st as it will be a traditional rate increase pre-CNY.
A day after announcing rate increases from Asia to the US, container lines are planning to hike the rates of key commodities shipping from the US to Asia: $100 per 40-foot container (FEU) via U.S. West Coast ports, $200 per FEU via East and Gulf Coast ports and $100 per FEU for intermodal shipments for six commodities: recovered fiber, scrap metal, plastic scrap and resin, lumber and logs, hay and agricultural products.
Members of the TSA include APL Ltd., K Line, China Shipping Container Lines, Maersk Line, CMA-CGM, Mediterranean Shipping Co., COSCO Container Lines, Ltd., Nippon Yusen Kaisha, Evergreen Line, OOCL, Hanjin Shipping Co., Yangming Marine Transport Corp., Hapag-Lloyd AG and Zim Integrated Shipping Services.
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