[ Transpacific Shipping Lines Adjust Rates and Chage... ]

Transpacific Shipping Lines Adjust Rates and Chages In Response To Wor
sening Trade Imbalance

Major container shipping lines serving the trade from Asia to Canada h
ave taken a series of pricing actions to address increasingly severe c
argo and equipment imbalances and to keep cargo moving.
Member carriers in the Canada Transpacific Stabilization Agreement(CTS
A) have agreed on the need for a further general rate increase(GRI) to
cover costs associated with special routing and handling of extraordi
nary cargo volumes eastbound from Asia, coupled with the effect of a d
ramatically weakened cargo market westbound from Canada. Effective Oct
ober 1, 1998, freight rates charged by CTSA member lines from all Asia
n origin points excluding the Indian Subcontinent, will be increased b
y US$300 per 40-foot container, with proportionate increase for other
sizes of equipment and cargo.
Shipments moving via Keelung, Taiwan (including Hsinchu, Taoyuan, Taip
ei County and Keelung) to Canada will be assessed an additional US$300
per standard FEU above the normal GRI, also effective October 1. The
additonal increae reflects significantly higher costs of receiving car
go at off-dock cargo facilities in Keelung for relay by truck to Kaosh
iung, where most carriers have their main ocean terminals. Until now t
hese costs have not been recovered by carriers, and other individual l
ines and agreements serving Taiwan have implemented similar increases.
On October 1, CTSA carriers will further implement a separate GRI for
cargo originating at Indian Subcontinent locations. The Indian Subcont
inent increase will be US$600 per FEU or the equivalent, reflecting sp
ecial operational difficulties in delivering equipment, and in loading
and consolidating cargo in that region. In a separate action, CTSA li
nes will extend a current peak season surcharge of US$300 through Nove
mber 30, 1998. It had been scheduled to expire October 31.
CTSA is a discussion and policy setting group of 12 ocean and intermod
al carriers serving the trade from ports and inland points in Asia and
the Indian Subcontinent to destinations throughout Canada. The member
s are as follows: American President Lines, Evergreen Marine Corporati
on (Taiwan), Hanjin Shipping Company, Hapag-Lloyd Container Linie, Hyu
ndai Merchant Marine Company, Kawasaki Kisen Kaisha(K Line), Mitsui O.
S.K. Lines, A.P.Moller-Maersk Line, Nippon Yusen Kaisha(N.Y.K. Line),
Orient Overseas Container Line, P&O Nedlloyd, Sea-Land Service.