Westbound ocean rates to climb

March 15, 2005
On April 1 members of the Trans-Atlantic Conference Agreement (TACA) will increase tariff rates on freight westbound from the U.S. TACA members already

On April 1 members of the Trans-Atlantic Conference Agreement (TACA) will increase tariff rates on freight westbound from the U.S. TACA members already increased rates on January 1 and plan to do so again in July and October.

As examples of rate increases, tariffs on 20-foot dry van containers had been bumped up $400 in January. The additional rate increase in April will be $240. For 40/45-foot dry containers, the increase in January was $500, and April will add $300.

TACA has also adjusted upward its charges for fuel and is holding until April 15 its currency adjustment at 9%. The latter is due to the continuing devaluation of the U.S. dollar. Any further adjustments to take effect on April 16 will be announced no later than March 15.

For the seven carriers that make up the membership of TACA, westbound traffic is expected to grow annually at 5%. Although eastbound volume was up by 10% last year, the imbalance between it and westbound traffic is roughly 35%. TACA members are A.P. Moller-Maersk Sealand, Atlantic Container Line, Hapag-Lloyd Container Line, Mediterranean Shipping Co., Nippon Yusen Kaisha NYK Line, Orient Overseas Container Line and P&O Nedlloyd.

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