Container lines are planning a $600 per feu general rate increase on the transpacific trade on 1 August.

In the latest is a series of attempts to raise box rates this year the Transpacific Stabilization Agreement (TSA) has set a minimum of $600 per feu increase from all ports in Asia to all destinations in the US on the back of what it described as “sustained third-quarter cargo demand across major commodity segments”.

TSA executive administrator Brian Conrad said: “It is essential for the trade to have a rate structure that encourages reinvestment, attracts equipment back into the market, covers rising inland transport and cargo handling costs, and enables carriers to broaden their service offerings. Given current rate levels, TSA members believe that $600 per FEU is the minimum needed to meet those objectives.”

Despite repeated rate increases lines have found it difficult to sustain new rate levels after they are implemented.