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TSA likely to raise container freight rates.

Taipei, Oct. 12, 2009 (CENS)--The Transpacific Stabilization Agreement (TSA) recently announced increasing the freight on cargo container contracts to be signed till May 2010 to the levels in 2008.

The new freight will be set at US$800 per 40-foot-equivalent (FEU) containers to be shipped from Asia to western American ports, and US$1,000 per FEU for containers shipped from Asia to eastern American ports. The TSA also suggested a peak-season surcharge of US$400 per FEU to be levied from August 2010.

Comprising 14 major shipping liners worldwide, TSA is a research and discussion group of major container shippers offering ocean and inland transportation, logistics and supply chain services from Asia to the U.S. Taiwan-based shipper members include Evergreen Marine Transport Corp. and Yang Ming Marine Transport Corp.

Since the beginning of this year, most shippers worldwide have been posting operating losses due to the global recession. Once the contracts with raised freight will have been settled, the shippers will stand a better chance to break even in the second half of 2010.

A Taiwanese industry insider noted the freight on a 40-foot container shipped from Asia to the western U.S. is at a historic low of less than US$1,000, below operating costs, and that shipped to the eastern coast of the U.S. is less than US$2,500, the lowest on record.
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Title Annotation:Transpacific Stabilization Agreement
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Oct 12, 2009
Words:231
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