WTSA Lines Adjust US-Asia Freight Rates on Forest Products

Oakland, CA / August 20, 2007 Member shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) have adopted guideline rate increases of US$100 per 40-foot container (FEU) and $80 per 20-foot container (TEU) for port-to-port forest products shipments, and of $150 per FEU and $120 per TEU for intermodal moves, to take effect October 1, 2007.

WTSA carriers said the increases are needed to help ensure equipment availability as the U.S. export market to Asia picks up and as demand for empty equipment intensifies in the Asia-Europe and intra-Asia markets, as well in the eastbound Asia-U.S. segment, given current imbalances. Lines add that, as more forest products migrate to containers from bulk rail movement, railroads continue to raise their container rates for those cargoes. Nearly 226,000 FEU of U.S. forest products were shipped to Asia in 2006, including woodpulp, lumber and logs, kraft linerboard, paperboard, plywood, newsprint and paper products.

WTSA members include:

American President Lines, Ltd.
COSCO Container Lines, Ltd.
Evergreen Line
Hapag Lloyd Container Lines
Hanjin Shipping Co., Ltd.
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd. (K Line)
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Ltd.
Yangming Marine Transport Corp.



Contact: Niels Erich
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