TSA move for floor freight rate on Asia-US route

The Transpacific Stabi-lisation Agreement (TSA) — the quasi-conference of 14 container lines — has suggested that a floor rate be established on freight movement from Asia to the US from July 1, Exim News Service reported.
The recommended rate per FEU to the West Coast is $ 1,350 and $ 2,500 to the East Coast, with a $ 100 surcharge on a 40-foot high-cube container. The group has also recommended proportional rate hikes for inland shipments.
Establishing a floor on rates, in the light of the recent flurry of reductions, will decide whether some lines continue to operate in the trade, explains TSA.
Efforts to curtail rate volatility during the off-peak period have been largely unsuccessful as carriers have struggled to respond to lower cargo demand and overcapacity, TSA points out.
TSA members are APL, CSCL, CMA CGM, Cosco, Evergreen Line, Hanjin, Hapag-Lloyd, Hyundai, K Line, MSC, NYK, OOCL, Yangming and Zim.
Source： Transportweekly