CONTAINER shipping lines participating in the Westbound Transpacific Stabilization Agreement (WTSA) have announced that they will be raising freight rates on shipments of chilled "vegetables, all kinds" (VAK) that are transported from the US to Asia.

Starting May 1, current VAK rates charged by WTSA members will be increased by US$200 per 40-foot container (FEU) for all origins and destinations.

The move is intended to help the shipping lines recover the high costs associated with transporting chilled produce across the Pacific. These costs are said to rank among the highest owing to the specialised temperature-controlled equipment required to move such produce. Personnel are also required to monitor shipments on each leg of the journey, plus VAK shipments demand more complex cargo handling and customs procedures at destination.

Furthermore to justify their decision, WTSA lines point to a sharp rise in inland trucking and rail costs over the past year, which they expect will increase further in 2007. They add that greater demand and higher rates on the other trades are also continuing to draw equipment from the transpacific market.

WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Marine Corp., NYK, Hanjin Shipping, OOCL, Hapag Lloyd Container Lines, and Yangming Marine Transport Corp.