Shipper-Carrier Panel Takes on Tough Issues in U.S.-Asia Trade


Oakland, CA / September 23, 2010 The Westbound Transpacific Stabilization Agreement (WTSA), a research and discussion forum of major container shipping lines in the U.S.-Asia trade lane, has formed a 16-member advisory board to solicit input from  a broad cross-section of freight shipper interests that make up the lines’ customer base.

The newly-created advisory panel is the direct outgrowth of a series of shipper meetings convened by WTSA in the past two years, bringing shipping lines and their customers together for ongoing consultations on issues of mutual interest. Objectives include strengthening overall long-term shipper-carrier relations; addressing specific short-term contracting, operational and service issues, many related to the recent global recession; and exploring best practices in areas of day-to-day interaction such as booking, documentation and demand forecasting.

Representation on the shipper side includes exporters of cargo ranging from cotton, grains and meat to machinery and metal scrap. It also includes both beneficial cargo owners and third-party consolidators. Because shippers’ concerns vary widely by market segment, commodity, seasonality and other factors, WTSA advisory board members have established working subcommittees to address unique trade characteristics. Members will serve two-year minimum terms, followed by staggered membership rotations, in the interest of continuity.

“Both sides wanted this initiative,” explained WTSA executive administrator Brian M. Conrad. “They felt they needed a forum to sit down, candidly exchange ideas, learn more about each other’s businesses, and focus on solutions. This WTSA advisory board has enabled them to do that.”

"This board has started an open and frank dialogue that has the potential to create a long term benefit for the whole shipping community," said board member Mike Ruder, director of logistics for Calcot, Ltd.

Advisory board discussions will explore, among other things, possible ways to structure mutual service commitments in contracts; more efficient processes to improve equipment availability; better demand forecasting to help both shippers and carriers plan their space and equipment needs throughout the year; and better coordination in the timing and communication of rate adjustments to accommodate exporters’ forward sales.

WTSA stressed that, commercial terms will be decided by individual shippers and carriers through negotiations. But it is hoped that candid discussions held within this new forum will lead to greater mutual understanding, more collaborative relationships and more innovative, service-focused contracting that will lead to efficient and effective processes going forward.

“We see an opportunity for direct dialogue on critical issues at a senior management level, to get at the core of some longstanding differences,” said WTSA chairman and Hanjin Shipping Co. CEO Y.M. Kim. “It will help us more fully understand the commercial realities at play on both sides, and hopefully result in significant benefits to our various industries over the long term."

"We've moved beyond simply venting frustrations to developing concrete actions to address the needs of both parties," another shipper representative on the advisory panel added. "In this age of increased volatility and competition both shippers and carriers need fresh approaches to solve today's tough challenges."

WTSA is a voluntary discussion and research forum of 10 major ocean and intermodal container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.

WTSA members include:

APL, Ltd.
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag Lloyd AG
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd. (K Line)
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Inc.
Yang Ming Marine Transport Corp.


Contact: Niels Erich
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