TACA Lines to Hike Eastbound Rates Next Month

(Transport Intelligence)

Container shipping lines belonging to the Trans-Atlantic Conference Agreement (TACA) are planning to implement a general rate increase for eastbound traffic, effective February 1, 2008.

In a statement, the group claimed that following a further review of current and projected transatlantic trading conditions, they wished to advise that “the increasing eastbound trade volume, as reported in the August trade announcement, is now creating severe demands on vessel space and, in particular, on container availability for the growing US exports”.

“This rising demand for space, as evidenced by the strength of eastbound cargo volumes and the high level of forward bookings, coupled with the additional costs of repositioning containers, is expected to increase substantially into 2008. In this respect, the TACA rate restoration measures published in October 2007 have provided insufficient revenues to cover the rising cost pressures encountered by these demands.

“The parties conclude that, under such conditions, services will become unsustainable at current levels and that further action is necessary in order to maintain the quality of services required by the trade. As a consequence, TACA wishes to advise its customers of an eastbound general tariff increase effective from February 1, 2008.”

TACA said the planned increases, for dry van and temperature-controlled containers moving from and via Atlantic, Gulf and Pacific ports, were $400 per 20ft container, $500 per 40ft/45ft container and WM $25.