TSA Members to Increase Rates ahead of Lunar New Year

zoom Anticipating strong pre-Lunar New Year shipments from Asia to the U.S., container lines in the Transpacific Stabilization Agreement (TSA) proposed a USD 600-per-40-foot container (FEU rate) increase for all origins and destinations. The rate increase is expected to take effect on February 9, 2015. According to TSA members, the increase is intended to ensure that carrier costs are adequately recovered coming out of the slower winter season. “This is a very challenging operating environment for transpacific container lines,” said TSA Executive Administrator Brian Conrad, “and it is critical to maintaining service levels that they not leave money on the table during the Lunar New Year period.” Conrad emphasized that, while some carriers have reported profitability in the trade in recent quarters, it has come almost entirely from cost-cutting as revenues have shown only marginal improvement over time.