According to multiple media outlets, carrier members of the Transpacific Stabilization Agreement (TSA) are planning a new General Rate Increase (GRI), effective February 9, 2015. This latest GRI, announced as USD 600 per 40’ container, is being characterized as an attempt to increase base rate levels in advance of a projected volume spike prior to Chinese/Lunar New Year (Feb. 18-24).
“This is a very challenging operating environment for transpacific container lines,” commented Brian Conrad, Executive Administrator of the TSA, “and it is critical to maintaining service levels that [TSA carriers] not leave money on the table during the Lunar New Year period.” Conrad added that, while some carriers have reported positive profits in recent quarters, these gains have come almost exclusively from cost-cutting rather than improved revenues.
SPARX logistics will continue to monitor this situation and keep our customers apprised of the latest developments. If you have questions related to specific shipments, please feel free to contact your SPARX representative.