CommentaryImportIndustry News

Strong Cargo Demand, Higher Rates

TSA Lines proposes minimum $600 GRI for Sept. 1

Excerpt from American Shipper | By Chris Dupin | August 21, 2014

Member container shipping lines in the Transpacific Stabilization Agreement (TSA) are proposing an across-the board general rate increase of at least $600 per 40-foot container to all destinations, effective Sept. 1, 2014.

To see September GRI Announcement, Click Here.

Carriers had filed increases in their individual tariffs in late July and then directly began notifying customers.  TSA said this week that “the planned GRI follows strong cargo demand and high vessel utilization levels in recent months, which forward bookings suggest will continue through September.”

“With equipment, inland transport and other cargo-handling costs rising steadily, carriers see higher baseline rates going into 2015 as essential to maintaining adequate service levels over time. “

Rising_Prices_000019541083XSmall

“Lines have made modest revenue gains to-date this year, but they continue to struggle in terms of returning to profitability,” said TSA Executive Administrator Brian Conrad. “In most route segments, they are operating at or near full capacity, with little room for error in managing assets, so this increase is needed as a cushion to cover costs and assure service choice and reliability.”

  TSA members include:

APL, China Shipping, CMA CGM, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, Maersk, MSC, NYK, OOCL, Yang Ming and ZIM.

Scarbrough continually works with carriers to waive or mitigate charges and rate increases.  

We enjoy representing our clients and appreciate being your international logistics partner, continually communicating what may lie in your future.

Please contact Kyle Morris, Vice President of Transportation, with any questions or concerns.  Email: kmorris@scarbrough-intl.com