Evergreen, container lines to raise US-Asia rates
Evergreen Marine Corp., China Cosco Holdings Co. and eight other shipping companies agreed to raise rates for US-Asia shipments as they battle to reverse industry-wide losses.
The group recommended increasing fees for shipping a 20-foot container from the ports of Los Angeles and Long Beach by $80 on Dec. 1, the Westbound Transpacific Stabilization Agreement said in a Nov. 3 statement. The rates at other west coast ports will rise by $120.
Evergreen and China Cosco, Asia’s two biggest container lines, have slumped to losses this year as slowing world trade and increasing capacity squeezes rates. Container lines worldwide may lose at least $20 billion in 2009, according to Drewry Shipping Consultants Ltd.
“The only way carriers can survive financially, meet rising US export demand and maintain adequate service levels is through improved revenues,” Brian M. Conrad, the WTSA’s executive administrator, said in the statement. “Transpacific carriers continue to see their fixed operating costs rise as freight rates decline in both directions.”
The group also proposed increasing fees for shipping a 20-foot refrigerated container from US West Coast ports by $200 from Jan. 15, the statement said. It will also add $240 to rates for intermodal and US East or Gulf Coast all-water cargos from the same date.
The WTSA’s other members are Neptune Orient Lines Ltd.’s APL Ltd. unit, Hanjin Shipping Co., Hapag-Lloyd AG, Hyundai Merchant Marine Co., Kawasaki Kisen Kaisha Ltd., Nippon Yusen K.K., Orient Overseas (International) Ltd. and Yang Ming Marine Transport Corp. (Bloomberg)



