Higher Ocean Rates Likely

The Transpacific Stabilization Agreement (TSA) is recommending that its 11 ocean carrier members negotiate for higher rates in the upcoming 2007-08 contracts to offset higher operating costs and increasing demand.

Specifically, the ocean carrier group is recommending rate hikes of $300 per FEU for transpacific cargo moving to U.S. West Coast ports; $650 per FEU for inland point and mini-landbridge intermodal shipments; and $500 per FEU for cargo moving all-water via the Panama or Suez Canals to the U.S. East Coast and Gulf Coast.