Carrier announces rate increase in line with Transpacific Stabilization Agreement

Orient Overseas Container Line affirmed it would join the “emergency revenue program” announced Wednesday by the Transpacific Stabilization Agreement, of which it is a member.

While TSA has no enforcement powers, its voluntary guidelines generally indicate the direction its members will take. CMA CGM, another member of the group, announced Thursday it would raise rates in line with the recommendation.

Saying that trading conditions in the Asia, Indian Subcontinent to U.S. trade are “subject to unacceptable rate levels and the situation is unsustainable in the longer term,” OOCL announced Thursday it would increase fees effective Jan. 15.

The increase will be $320 per 20-foot equivalent unit, $400 per 40-foot equivalent unit, $450 per 40-foot high cube, and $505 per 45-foot high cube.

In a further announcement on Friday, OOCL said the same emergency revenue charge would apply effective Jan. 15 to all dry and reefer shipments from Honk Kong, Macau and South China to the United States.

The increase is an “interim charge and set to expire upon contract renewal,” the carrier said.

TSA on Oct. 6 announced that in service contract negotiations next spring, its members will seek to increase freight rates by $800 per FEU to the West Coast and $1,000 per FEU to the East Coast. Intermodal shipments moving by rail to interior destinations would also be increased by $1,000. Negotiations normally take place in March and April, with the new service contract rates taking effect on May 1.