Trying again to stop the erosion of rates that has hit major east-west trade lanes this year, shipping lines in the eastbound Pacific intend to implement interim rate hikes on Jan. 1, 2012.
The Transpacific Stabilization Agreement, a discussion group of 15 carriers operating Asia to the U.S., said its member lines plan to individually raise all-inclusive freight rates and charges by a minimum of $400 per 40-foot container.
Although the rate increases will be too late for holiday-season imports, most of which have already entered the country, the carriers appear poised to take advantage of a cargo spike anticipated in January before factories in Asia close for the 2012 Chinese New Year celebrations.
Freight rates in the largest U.S. trade lane began to slip last spring and have continued to deteriorate since then.
The recommended freight rate increase applies to all shipments moving under individual carrier tariffs, as well as service contract cargo in all commodity segments where volume commitments have been met or contract provisions permit.
“The objective is to meet expected cargo demand growth and begin reversing 2011 revenue losses resulting from slower than expected demand, on-going market uncertainty and the impact of short-term concessionary rates bleeding into 12-month 2011 service contracts,” the TSA said in a statement.
The Journal of Commerce Online
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