Container shipping lines operating on the Transpacific trades will try to implement "across-the-board" freight rate rises on westbound services from the start of next month, with more hikes likely in November and December.
A statement from the Transpacific Stabilization Agreement (TSA) said recommended westbound rate increases should reflect "the trade's recovery from congestion challenges earlier in the year, a strengthening market heading into what is typically the trade's peak season, and an urgent need to halt damaging rate erosion".
From 1 October, member lines will seek to establish new target rates in all dry commodity segments that the TSA said would "translate into modest increases in most cases, with higher proportionate increases" for the most depressed rates.
"TSA-Westbound lines say they expect to follow with similar, gradual increases in November and December," added the TSA.
Brian Conrad, TSA-Westbound executive administrator, said US-Asia freight rates had fallen to historically low levels since the beginning of 2015 due to a strong dollar and unusually weak emerging market demand.
"Current westbound rate levels in many cases do not fully cover costs," he said. "At best, they make only a nominal contribution to a round-trip sailing, and barely compete for space aboard ship with empty repositioned containers needed in Asia."
"Worse, at a time when westbound equipment is already in short supply, depressed rates encourage migration of containers to other trades."