The prospect of a rate increase doesn't bother Diane Eicher. Rate uncertainty does. And as the new year approached, uncertainty is what she - and who knows how many others? - had to confront.Eicher is produce exports manager of Coppersmith, Inc., a freight forwarder and customs broker based in Redondo Beach, Calif. She doesn't mind that carriers in the Westbound Transpacific Stabilization Agreement (WTSA) plan a general rate increase of $300 per 40-foot container (FEU) this year.
What does concern her, she told Marine Digest in mid-December, is that only two participants of the so-called talking agreement - APL Ltd. and Maersk-SeaLand - have notified their customers in writing of the forthcoming rate increase. Other shipping lines have given only verbal notice, she said, and "it's causing confusion."
The Transpacific Stabilization Agreement (TSA), comprising carriers in the eastbound trades, said its members hope to boost their rates by $400 per FEU this year and plan to reinstitute a $300-per-box surcharge during the peak shipping season between July 1 and October 30.
But the vessel operators don't always achieve their pricing goals. One reason is that in most years, there is overcapacity. And another factor came into play last May when a new set of shipping regulations took effect, giving shippers and carriers authority to keep the essential terms of their service contracts confidential. |