Amid a historic decline in spot-market rates on containerized shipments from Asia to the U.S., the largest steamship lines plying the eastbound trade Friday suggested two rounds of rate increases on, Dec. 1 and Jan. 1, designed to pull rates off of rock bottom.
Liners in the “Transpacific Stabilization Agreement” (TSA) said that, effective Dec. 1, it would seek to restore rates to levels no lower than $950 per 40-foot equivalent unit (FEU) container moving to the West Coast; $1,700 per FEU to the U.S. East and Gulf coasts; and $2,950 per FEU for intermodal moves to key Chicago-area inland-point destinations. The most recent noncontractual rate for eastbound freight to the West Coast was $922 per FEU, down from $1,009 in the prior week, according to the Shanghai Containerized Freight Index, which measures market pricing in the trade.
TSA members would follow those increases up with general rate increases of $1,200 per FEU to the West Coast, and $1,600 per FEU to the East and Gulf coasts. Those proposed increases would take effect Jan. 1.