WSTA forms carrier-shipper advisory board to talk things out

THE Westbound Transpacific Stabilisation Agreement (WTSA) has formed a 16-member advisory board to solicit opinion from freight forwarders and shippers, said a statement from the group, often regarded as a quasi-conference and now subject to the scrutiny of US regulators and politicians.

The WTSA stressed that commercial terms will be decided by individual shippers and carriers through negotiations. But talks within the forum will lead to greater mutual understanding, more collaborative relationships and more innovative, service-focused contracting that will lead to efficient and effective processes going forward, said the group.

The newly-created advisory panel is the outgrowth of a series of shipper meetings convened by WTSA, a research and discussion forum of major container shipping lines in the US-Asia trade lane.

In the past two years, the group has brought together shipping lines and customers for consultations on issues of mutual interest. Objectives include strengthening overall long-term shipper-carrier relations, addressing specific short-term contracting, operational and service issues, many related to the recent global recession and exploring best practices in booking, documentation and demand forecasting, said the group.

"Representation on the shipper side includes exporters of cargo ranging from cotton, grains and meat to machinery and metal scrap. It also includes both beneficial cargo owners and third-party consolidators," said the WTSA statement.

"Because shippers' concerns vary widely by market segment, commodity, seasonality and other factors, WTSA advisory board members have established working subcommittees to address unique trade characteristics. Members will serve two-year minimum terms, followed by staggered membership rotations, in the interest of continuity," the statement said.

Said WTSA executive administrator Brian Conrad: "Both sides wanted this. They felt they needed a forum to exchange ideas, learn more about each other's businesses and focus on solutions. This WTSA advisory board has enabled them to do that.

Advisory board member Mike Ruder, director of California cotton exporter Calcot Ltd, said: "This board has started an open and frank dialogue that has the potential to create a long term benefit for the whole shipping community."

The WTSA advisory board discussions will explore, among other things, possible ways to structure mutual service commitments in contracts, more efficient processes to improve equipment availability, better demand forecasting to help both shippers and carriers plan their space and equipment needs throughout the year and better coordination in the timing and communication of rate adjustments to accommodate exporters' forward sales.

"We see an opportunity for direct dialogue on critical issues at a senior management level, to get at the core of some longstanding differences," said WTSA chairman and Hanjin Shipping CEO YM Kim.

"It will help us more fully understand the commercial realities at play on both sides, and hopefully result in significant benefits to our various industries over the long term," said Mr Kim.

WTSA members include APL, Hyundai, Cosco, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yang Ming.
(Source:www.schednet.com)