The Transpacific Stabilization Agreement (TSA) has announced that it has recommended an $800 per feu hike in freight rates for cargos from Asia to the US west coast from mid-October.

TSA's recommendation were part of guidelines for 2013-14 contracts for its members ahead of a new round of negotiations with customers. The organisation, which groups together some of the biggest lines on the Transpacific trade, also recommended a $1,000 per feu rate increase on containers to the US east coast and Gulf coast through either the Panama Canal or Suez Canal.

The TSA said in a statement the increases should take effect from mid-October with the renewal of contracts or signing of new contracts extending into 2013 or 2014. Apparently lines had faced a steep uphill climb throughout this year to reverse revenue losses as steeply discounted rates in key shipping lanes had crept into 12-month contracts, TSA said.

(Source:seatrade asia online)