3/1/2011
HEADLINES
Shippers Justify Upcoming Transpacific Sea Freight Hikes on Increasing Cargo

Transpacific carriers point to growing cargo demand as justification for rate hikes planned for 2011.
 

The Transpacific Stabilization Agreement representing leading carriers on Asia-U.S. routes is anticipating a recovering U.S. economy will absorb most of the new shipping capacity, according to IFW-net.com.
 

The TSA predicts late vessel deliveries and equipment shortages will offset capacity increases.
 

TSA chair YM Kim, CEO of Hanjin Shipping, predicted 2011 cargo demand will grow 7% to 8% over 2010. Cargo was up 15% in 2010.

“This continued cargo growth from a much higher base is, in our view, a very positive sign of recovery,” Kim told IF-net. 

Last November the TSA recommended $400 per container increase eastbound to the U.S. beginning in May.

During the fourth quarter the 15 TSA members averagee 96% utilization October to 79% in December for vessels headed to the U.S. West Coast.

TSA administrator Brian Conrad predicted container equipment could be in short supply by summer.  

“We expect overall 2011 load factors to remain quite strong,” Conrad told IFW-net. “Even if there prove to be dips in utilization levels during certain periods, the experience of early 2010 is still relatively fresh in carriers’ minds.” ©2011 GlobalFastenerNews.com