WTSA to Boost Wastepaper Rates

CONTAINER shipping lines participating in the Westbound Transpacific Stabilization Agreement (WTSA) have announced that a second increase in wastepaper freight rates will be implemented this year.

From September 1, a rate hike of US$50 per FEU and $40 per TEU will take effect. The proposed increase applies to both port-to-port and intermodal shipments, and follows an earlier increase.

The carriers say that the sudden cargo growth in the US-Asia market due to the weaker US dollar has put pressure on carriers to make container equipment available across many commodity segments. At the same time, a continuing cargo and equipment imbalance favouring inbound traffic requires shipping lines to optimise equipment allocation for faster turns and improved utilisation, putting an upward pressure on rates, especially as low-rated, high-volume traffic such as wastepaper competes with other cargoes for available equipment.

WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Marine, NYK Line, Hanjin Shipping, OOCL, Hapag Lloyd Container Lines and Yangming Marine Transport Corp.