U.S.-Asia Container Lines to Raise Freight Rates

for Cargo Not Covered by Specific Increases


Oakland, CA / January 20, 2005 Shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) are recommending a rate increase of US$200 per 40-foot container (FEU) and $160 per 20-foot container (TEU) for all U.S.-Asia cargoes not covered under separate, commodity-specific rate programs. The increase is to take effect March 1, 2005.

Commodities already covered under existing rate programs or currently under separate review, and thus exempted from the ‘cargo not otherwise specified (NOS)’ increase, include:

    Exempt commodities (wastepaper, forest products, metal scrap)

    Hay

    Soybeans, peas, beans and lentils

    Dried fruit and nuts

    Hides

    Clay

    Cotton

    Chemicals and resins

    Onions in dry containers

    Refrigerated commodities

    Plastic scrap

Non-refrigerated agricultural products other than soybeans, peas, beans and lentils are already scheduled to take a previously announced $200 per FEU/$160 per TEU increase on March 1, which will go forward as planned.

Both scheduled increases represent the continuation of an overall rate program begun in 2004 to help address rising operating costs, equipment imbalances and system-wide infrastructure congestion outside carriers’ control.

WTSA is a voluntary discussion and research forum of 13 major container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.

WTSA members include:

American President Lines, Ltd.
China Shipping Group
COSCO Container Lines, Ltd.
Evergreen Marine Corp. (Taiwan), Ltd.
Hapag Lloyd Container Line
Hanjin Shipping Co., Ltd.
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd. (K Line)
Mitsui O.S.K. Lines, Ltd.
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Inc.
P&O Nedlloyd Ltd./B.V.
Yangming Marine Transport Corp.



Contact: Niels Erich
T:
F:
E: