Ontario - October 12, 2009 - In a move to restore Asia-Canada freight rates to compensatory levels, address rising operating costs, and provide some degree of financial recovery for the members, member container lines in the Canada Transpacific Stabilization Agreement (CTSA) have adopted a 2010 guideline revenue program for 2010. Specific elements of the program, to take effect as contracts or other rate agreements are renewed but by no later than May 1, 2010, include:

A general rate increase (GRI) of US$800 per 40-foot container (FEU) for Vancouver local and door cargo, and US$1,000 per FEU for intermodal, mini-landbridge and all other Canadian cargo, with per formula increases for all other sizes.

A $400 peak season surcharge (PSS), effective from August 1, 2010, to address higher cargo handling, equipment positioning and contingency planning costs during periods of peak cargo volume.

Full collection of fuel and other accessorial charges.

CTSA executive administrator Brian M. Conrad acknowledged that the scheduled increases are significant, and that customers are under tremendous cost pressures as well. But he stressed that the increases must be viewed in the context of dramatic volume and rate declines seen in early 2009. CTSA lines voiced cautious optimism about the hopes for an improving Asia-Canada freight market in 2010-11, but indicated that ongoing uncertainty forces lines to keep their focus on conserving cash, building a stronger balance sheet, and establishing a sustainable rate environment.

Source: CIFFA