COSCO Container Lines provided details Monday on the cost recovery program for containerized cargo moving from the Asia to the United States in a notice to customers posted on its Web site.
The program, to go into effect Aug. 10, was first announced last week by Transpacific Stabilization Agreement, the discussion agreement for 14 container shipping lines moving containerized cargo from Asia to Europe.
COSCO said the program will cover "all the cargoes moving to the U.S. from the Far East and Indian Subcontinent area including Bangladesh, Brunei, Cambodia, China Mainland, China Hong Kong, India, Indonesia, Japan, Korea, China Macau, Malaysia, Myanmar, Pakistan, Philippines, Singapore, Sri Lanka, China Taiwan, Thailand, Vietnam."
It said all cargo moving under tariff rates and service contract will be charged a cost recovery program fee as follows: $400 per 20-foot container, $500 per 40-foot container, $563 per high-cube container, and $633 per 45-foot container.
"Since last year the freight rates in transpacific trade have been far below the level to cover the vessel operating cost and the situation is even deteriorated due to the recent soaring fuel price. So it is necessary for the carrier to launch the cost recovery program as a measure to maintain the stable and high quality service to customers," COSCO said.
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