MMH    Topics     News

Transpacific Stabilization Agreement to raise rates in 2011

“It is unfortunate that this is being done before there can be any change to the Shipping Act,” said Michael Berzon, out-going chairman of the National Industrial League’s (NITL) ocean cargo committee.


Latest Material Handling News

Ocean carriers comprising the Transpacific Stabilization Agreement (TSA) have announced that rates will be hiked by a significant margin next year.

According to cartel spokesmen, “suggested” rate increases of $400 per 40-foot container (FEU) for cargo moving to U.S. West Coast ports and $600 per FEU for all other cargo are likely to be imposed by May 1, 2011.

“It is unfortunate that this is being done before there can be any change to the Shipping Act,” said Michael Berzon, out-going chairman of the National Industrial League’s (NITL) ocean cargo committee.
“Carriers can raise rates in lockstep now, without any concern that such behavior represents a violation of anti-trust laws.”

TSA lines have further recommended full recovery of costs for other equipment sizes, and improved collection of floating bunker and inland fuel charges as well as Panama Canal, Alameda Corridor and other fixed accessorial charges.

This comes at a time when the cartel admits that it has had “healthy revenues” over the past two quarters. Still, they say, an early end to the transpacific peak season has left that trade lane lagging relative to other Asia container markets, while operating costs continue to rise.

Carriers called for adjustments to store-door delivery rates as warranted, to levels that adequately compensate carriers for rising costs in providing those services. Finally, TSA is recommending a peak season surcharge of $400 per FEU, effective from June 15, 2011 through November 30, 2011, with those dates subject to adjustment based on changing market conditions.

As reported in LM, the NITL maintains that the current U.S. shipping regulatory system today does not work in the best interests of U.S. businesses that are required to compete in the global market. The League said H.R. 6167 was an “appropriate” first step toward achieving a more robust, competitive and efficient maritime industry. It also added that the bill, “seeks to address recent problems faced by importers and exporters in enforcing service contract obligations in a timely and cost effective manner.”

Berzon said in a subsequent interview that with a “lame duck” Congress, there is scant chance that such legislation will be enacted this year.


Article Topics

   All topics

News & Resources

Latest in Materials Handling

NetLogistik partners with Vuzix subsidiary Moviynt to offer mobility solutions for warehouses
Materials Handling Robotics: The new world of heterogeneous robotic integration
Lucas Watson appointed CSO for Körber’s Parcel Logistics business in North America
Hyster recognizes Dealers of Distinction for 2023
Carolina Handling names Joe Perkins as COO
C-suite Interview with Keith Moore, CEO, AutoScheduler.AI: MODEX was a meeting place for innovation
Walmart deploying autonomous lift trucks at four of its high-tech DCs
More Materials Handling

About the Author

Patrick Burnson's avatar
Patrick Burnson
Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts.
Follow Modern Materials Handling on FaceBook

Subscribe to Materials Handling Magazine

Subscribe today!
Not a subscriber? Sign up today!
Subscribe today. It's FREE.
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today.

Latest Resources

Materials Handling Robotics: The new world of heterogeneous robotic integration
In this Special Digital Edition, the editorial staff of Modern curates the best robotics coverage over the past year to help track the evolution of this piping hot market.
Case study: Optimizing warehouse space, performance and sustainability
Optimize Parcel Packing to Reduce Costs
More resources

Latest Resources

2023 Automation Study: Usage & Implementation of Warehouse/DC Automation Solutions
2023 Automation Study: Usage & Implementation of Warehouse/DC Automation Solutions
This research was conducted by Peerless Research Group on behalf of Modern Materials Handling to assess usage and purchase intentions forautomation systems...
How Your Storage Practices Can Affect Your Pest Control Program
How Your Storage Practices Can Affect Your Pest Control Program
Discover how your storage practices could be affecting your pest control program and how to prevent pest infestations in your business. Join...

Warehousing Outlook 2023
Warehousing Outlook 2023
2023 is here, and so are new warehousing trends.
Extend the Life of Brownfield Warehouses
Extend the Life of Brownfield Warehouses
Today’s robotic and data-driven automation systems can minimize disruptions and improve the life and productivity of warehouse operations.
Power Supply in Overhead Cranes: Energy Chains vs. Festoons
Power Supply in Overhead Cranes: Energy Chains vs. Festoons
Download this white paper to learn more about how both systems compare.