[ TWRA RAISES FUEL SURCHARGE TO MEET RISING COSTS ]

A sharp rise in marine fuel prices during the first quarter of 1996 ca
used the Transpacific Westbound Rate Agreement(TWRA) to increase its f
uel adjustment factor(FAF) surcharge, effective for the calendar quart
er beginning April 1, 1996.
Effective April 1 the TWRA FAF, applied to all shipments moving on TWR
A member line vessels, will be set at US$120 per 40-foot container (FE
U); US$6 per revenue ton for cargo otherwise rated.
The increase reflects an overall increase of more than $21 per ton in
the price of marine diesel fuel at key trans-Pacific loading points du
ring the preceding quarter. Marine fuels are distillates whose prices
reflect distinct processing, transport and storage costs on the world
market, and are not linked to more well-publicized fluctuations in cru
de oil prices.
TWRA adjusts its FAF on a quarterly basis, according to a formula that
measures movements in marine fuel prices at key loading ports for the
trans-Pacific trade and weights prices according to specific cost imp
acts to carriers.
TWRA is a ratemaking group of 10 ocean and intermodal transportation c
ompanies serving the trade from ports and inland points in the U.S. to
destinations throughout Asia and the Indian Subcontinent.