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Transpacific carriers chase peak season surcharge of US$400/FEU

Author: Time:2014-5-6 read:2098number

 TRANSPACIFIC container shipping lines are introducing a peak season surcharge of US$400 per FEU for all shipments, effective June 15 as carriers experience a surge in eastbound bookings from Asia to the US.

The announcement follows a general rate increase (GRI) of $300 per FEU to the US west coast and $400 to all other US destinations from May 15 "to further help offset rate erosion seen in recent months."

"Carriers continue to play catch-up on rates, which have been stagnant since 2011," said TSA executive administrator Brian Conrad.

The peak season surcharge is intended "to cover contingencies in the event of an earlier than usual peak season - diversifying port gateways, rerouting inland traffic, leasing extra equipment". reported Lloyd's List.

"Modest revenue gains from recent GRIs will not be adequate to pay for upgraded services to meet likely demand surges in the coming months," said Mr Conrad.

Stronger volumes began in January and are expected to continue into the second half of 2014, with vessel utilisation in the mid-90 per cent range for shipments moving via the west coast, and in the high-90 per cent to the east and Gulf coasts.

The Shanghai Containerised Freight Index shows that spot rates for cargo moving from China to the US west coast were at $1,913 per FEU at the beginning of May, less than $2,000 per loaded FEU a year earlier.

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