CONTAINER shipping lines serving the US-Asia trade are calling for an across-the-board increase in refrigerated cargo rates, to cover higher equipment and operating costs during the slow winter season.

    Member carriers in the Westbound Transpacific Stabilisation Agreement (WTSA) said they will raise refrigerated cargo rates by US$300 per FEU from January 1.

    The rate hike will apply to all commodity segments and origin-destination pairs. WTSA said the increase is needed to ensure equipment availability by covering the network costs of redeploying refrigerated containers from other trades.

    "Refrigerated equipment, already in limited supply worldwide, tends to be diverted out of the transpacific during winter months in the US. That adds to operating costs in serving US export shippers of agricultural and non-agricultural commodities. The problem is compounded when equipment is pulled from more lucrative markets paying higher rates for refrigerated and other specialised equipment," a WTSA statement said.

    WTSA members are APL, Hyundai, Cosco, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yang Ming.

source:www.schednet.com