The US-Asia Container Lines have announced 2004-05 rates for cotton. The new minimum rates reflect higher fuel and inland transport cost. According to a press release, container shipping lines in the Westbound Transpacific Stabilisation Agreement (WTSA) have recommended adjustments to their guideline minimum rates on US cotton shipments to Asia, effective from December 1.
Rates to Hong Kong, China and Indonesia ports will include Destination Terminal Handling Charges (DTHC), while the rate to Karachi, will be subject to a pre-paid DTHC. All other rates are subject to the DTHC under the terms included in individual carrier tariffs.
The WTSA member carriers have established current moving rates as baseline minimums and said they intended to increase those rates by 90 dollars per 40-foot container (FEU) between all US origins and Asian destinations.
Most of the increase is related to higher fuel costs during the past year, which have not been broken out into separate surcharges in most cotton service contracts.
Inland point rates, with the exception of four origin points - Dallas, Memphis, Houston and Lubbock - will be increased by a further 50 dollars per FEU to reflect increased inter-modal costs in serving those locations.
Container Lines said they would continue to monitor market conditions closely in the weeks leading upto the peak cotton shipping season, beginning in December.
The WTSA is a voluntary discussion and research forum of 13 major container shipping lines serving the trade from ports and inland points in the US to the destinations throughout Asia.
The WTSA members include American President Lines (APL), Kawasaki Kisen Kaisha (K Line), China Shipping Group, Mitsui O.S.K. Lines, COSCO Container Lines, Nippon Yusen Kaisha (NYK Line), Evergreen Marine Corp (Taiwan), Orient Overseas Container Line Inc, Hanjin Shipping Company, P&O Nedlloyd Limited/B.V., Hapag Lloyd Container Line, Yangming Marine Transport Corp and Hyundai Merchant Marine Company.
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