Ocean container shipping rates to increase in 2008

By Dave Hannon -- Purchasing, 11/7/2007 7:29:00 AM

The 14 members of the Transpacific Stabilization Agreement expect to raise the rate for shipping a 40-foot container to the U.S. West Coast from Asia by $400, and by $600 for shipments to all other U.S. destinations. It also plans to impose a $400 peak season surcharge from June to October 2008.

The group also said it will reinstate fuel surcharges that have previously been rolled into rates, according to a Reuters report.

In a report in the U.K.-based Telegraph newspaper, Ronald Widdows, chairman of the TSA, said: "Lines will, of necessity, be pressing the issue of a full, floating bunker charge very seriously in upcoming contract negotiations. Fuel prices are far too volatile, and ocean carriers are far too exposed...to lock in a single price for a year."

In August, members of the Westbound Transpacific Stabilization Agreement increased rates from the U.S. to Asia by $100 on each 40-foot container.

The TSA is a group of ocean container carriers shipping from Asia to the U.S. While it doesn’t set rates, its reviews costs and other factors and makes recommendations to its members. TSA member include:

American President Lines (APL)
CMA-CGM
COSCO Container Lines
Evergreen Line
Hanjin Shipping Co.
Hapag Lloyd Container Lines
Hyundai Merchant Marine Co.
Kawasaki Kisen Kaisha (K Line)
Mediterranean Shipping Co.
Mitsui O.S.K. Lines
Nippon Yusen Kaisha (NYK Line)
Orient Overseas Container Line
Yangming Marine Transport Corp.
Zim Integrated Shipping Services