WTSA lines to increase rates for forest products

MEMBER lines of the Westbound Transpacific Stabilization Agreement (WTSA) are raising freight rates for port-to-port forest product shipments.

From October 1, a rate hike of US$100 per FEU and $80 per TEU will be levied on port-to-port forest product shipments, and a further $150 per FEU and $120 per TEU for intermodal moves, a statement issued on behalf of member lines said.

WTSA carriers said the increases are needed to help ensure equipment availability as the US export market to Asia picks up and demand for empties intensifies in the Asia-Europe and intra-Asia markets, as well in the eastbound Asia-US segment, given current trade imbalances.

Lines add that, as more forest products migrate to containers from bulk rail movements, railroads continue to raise their container rates for those cargoes. Nearly 226,000 FEU of US forest products were shipped to Asia in 2006, including woodpulp, lumber and logs, kraft linerboard, paperboard, plywood, newsprint and paper products.

WTSA members are: APL, HMM, Coscon, "K" Line, Evergreen Line, NYK Line, Hanjin Shipping, OOCL, Hapag Lloyd, and Yangming Marine.