News
- CIFFA: Ocean Updates
- 2/3/2010
Ocean Updates
• CTSA Lines Adopt Second-Stage Interim Rate Increase For 2010
Continued depressed rate levels in the Asia-Canada market have made it necessary for major container lines in the trade to implement a second general rate increase (GRI) in advance of upcoming tariff and contract rate increases.
Effective March 15, 2010, member carriers in the Canada Transpacific Stabilization Agreement (CTSA) say they intend to raise Asia-Canada rates across the board by US$400 per FEU for Vancouver local and door cargo, and by US$500 per FEU for all intermodal and East Coast all-water shipments, with other equipment sizes rated per formula. The new rates will apply to all CTSA origins, including Pakistan, Sri Lanka and Bangladesh.
CTSA stressed that the increase will apply to existing rates only, and is not meant to replace the previously announced May 1 GRIs of $800 per FEU for Vancouver local and door cargo, and $1,000 per FEU for intermodal and East Coast all-water moves, which will be applied to all long-term contracts going forward in 2010.
In addition to the interim GRI, the full floating CTSA bunker charge and currency adjustment factor (CAF) will be applied to all base rates effective January 1, 2010. CTSA pointed out that, in the current economic and financial climate, carriers could not afford to absorb currency fluctuation costs and would make every individual effort to apply and collect the CAF per the CTSA formula. The CAF was set at 5% as of February 1, 2010, and is scheduled to rise to 6% on March 1.
• COSCO Canada Update to PNW North & South Services
COSCO Canada has advised that the PNW Service will be split into two separate services starting from Week 9 at load ports. In order to facilitate this change, there will be NO SAILINGS for either the PNWN or PNWS in Week 8 at origin. The new Port Rotations will be:
PNW-N (PNW1): Ningbo (Sat-Sun), Shanghai (Mon-Tue), Busan (Wed-Thur), Seattle (Sat-Sun), Portland (Mon-Tue), Vancouver (Wed-Fri)
PNW-S (PNW2): Hong Kong (Thur-Fri), Yantian (Fri-Sat), Yokohama (Tue-Wed), Prince Rupert (Thur-Friday), Vancouver (Sat-Mon)
For more specific information regarding vessel and service sailing schedules, visit the COSCON.com Website.
• MSC GRI on Exports from North America to Relay Destinations
MSC Mediterranean Shipping Company has advised it is implementing a General Rate Increase effective 1st of March 2010.
From USA & Mexico to Relay* rates will increase by USD$150 per 20’ and USD$250 per 40’
From Canada to Relay* rates will increase by USD$200 per 20’ and USD$350 per 40’
* Relay Destinations: Bangladesh, Israel, Turkey, Greece, Lebanon, Syria, Cyprus, Egypt, Ukraine, Georgia, Bulgaria, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, U.A.E, Yemen, Jordan, India, Pakistan, Djibouti, Kenya, Sudan, Tanzania, Algeria, Angola, Benin, Cameroon, Ghana, Ivory Coast, Libya, Malta, Mauritania, Morocco, Nigeria, Senegal, Togo, Tunisia, Iran, Cape Verde, Guinea Bissau, Sri Lanka, Romania, Russia, Gambia, Guinea, Iraq.