Oakland, CA / August 25,
2006 – Transpacific shipping lines
in the Westbound Transpacific Stabilization Agreement (WTSA) are recommending an
increase of US$50 per 40-foot container (FEU) and $40 per 20-foot container to
freight rates for agricultural products, effective October 1, 2006. The
increases will apply to non-seasonal shipments of meal, flour, starches, feed
grains, corn products seeds and additives; and seasonal shipments of grains,
soybeans, cotton products and leguminous vegetables.
WTSA said that higher
rates are needed for these commodities to help recover rising costs.
Agri-products exports are moving in growing volumes to Asia, particularly to China.
Shipments are heavy, at times requiring special chassis equipment, routing and
stowage aboard ship. The vast majority move intermodally, at a time when rail
and truck costs have escalated. And equipment often requires special cleaning
and maintenance in Asia. Lines said they favor an incremental approach to cost
recovery, giving shippers more time to plan for and absorb increases. They will
continue to monitor movements of agri-products to Asia, and are holding open
the possibility of further rate adjustments as warranted.
WTSA is a voluntary
discussion and research forum of 11 major container shipping lines serving the
trade from ports and inland points in the U.S. to destinations
throughout Asia. Information on all recent and scheduled guideline actions
adopted by WTSA can be found on the Agreement’s web site, www.wtsacarriers.org.
-more-
WTSA members include:
American President Lines,
Ltd. Hyundai Merchant Marine Co.,
Ltd.
China Shipping
Group Kawasaki Kisen Kaisha,
Ltd. (K Line)
