Container shipping lines participating in the Canada Transpacific Stabilisation Agreement (CTSA) have devised a 2008 rate programme that takes in account rising operational costs, a weaker US dollar and soaring world fuel prices.
These factors will affect next year's rate negotiations as the 11-member discussion group seeks to implement full, floating bunker fuel surcharges to improve cost recovery.
"As inland transport, cargo handling, equipment and other operating expenses continue to rise, local currency costs accelerate further against US-dollar-denominated freight rates. Asia-Canada container lines in the Canada Transpacific Stabilisation Agreement (CTSA) have adopted a 2008 rate programme that addresses both challenges, as well as soaring world fuel prices, the leading operating cost component for ocean carriers," a CTSA statement said.
Starting May 1, CTSA lines will raise west coast rates by US$400 per FEU and inland point and east coast rates by $600 per FEU. In addition, a $400 per FEU peak season surcharge will be in effect from June 1 to October 31.
CTSA member lines have also adopted a voluntary guideline 12 per cent currency adjustment factor (CAF) that will be implemented from January 1 from all Asia origins except Japan, which will introduce that CAF one month later.
The CTSA release said, "The currency surcharge is intended to address rising local currency operating costs, given the recent sharp appreciation of the Canadian dollar relative to the US dollar in which freight rates are assessed."
This action was prompted by the findings of an internal CTSA survey which found that from January to November 2007 the exchange rate shifted from C$1.16 to C$0.93 in relation to the US dollar, which the members said "has had a significant impact on carrier costs. This weighted average reflects the ratio of west coast to east coast cargo, and costs related to empty equipment positioning".
CTSA member lines said the rates as adjusted will in turn be subject to full, floating bunker fuel surcharges, assessed separately from base freight rates in cases where surcharges have been capped, mitigated or folded into all-in rates.
CTSA members also announced that from January 1, the fuel surcharges will be imposed of US$755 per TEU, $950 per FEU, $1,065 per 40-foot high cube, $1,220 per 45-foot container and $21 per weight/measure.
The 11 CTSA container lines serving the trade from Asia and the Indian Subcontinent to ports and inland points in Canada are: APL, HMM, Cosco, "K" Line, Evergreen Line Joint Service Agreement, MOL, Hanjin Shipping, NYK, Hapag-Lloyd, OOCL, and Yangming.
|
