[ TWRA Sets Currency & Fuel Surcharges for Fi... ]

TWRA Sets Currency & Fuel Surcharges for First Quarter 1998

Continued strengthening of the U.S. dollar against some Asian currenci
es, and a rise in marine fuel prices during the fall months, have led
the Transpacific Westbound Rate Agreement(TWRA) to adjust its currency
and fuel surcharges.
Effective for the calendar quarter beginning January 1, 1998, TWRA wil
l lower its currency adjustment factor(CAF) surcharge on shipments mov
ing from the U.S. to Japan, from 43 percent to 39 percent; on cargo mo
ving to Taiwan from 9 to 8 percent; and on cargo bound for Singapore f
rom 15 to 13 percent. A TWRA CAF for Korea shipments, that had been r
educed to zero earlier this year as a result of sharp weakening of the
Korean won against the dollar, will remain sespended in the coming qu
arter.
Higher fuel prices have triggered an increase in TWRA’s fuel adjustme
nt factor(FAF) surcharge, under the Agreement’s pre-established calcu
lation formula.
Effective for the quarter beginning January 1, 1998, the FAF-- applica
ble to all shipments carried by TWRA member lines-- will be raised fro
m US$100 to $120 per 40-foot container(FEU); from $80 to $96 per 20-fo
ot container(TEU); and from $5 to $6 per revenue ton for cargoes not r
ated on a per-container basis.
TWRA is a rate setting group of 11 ocean and intermodal carriers servi
ng the trade from port and inland points in the U.S. to destinations t
hroughout Asia and the Indian Subcontinent.