Excerpt from: North America Supply Chain and Logistics Strategy
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| November 14, 2007 | | The TSA expects to recommend an increase of $400 - $600 on 40-foot containers coming to the US from China. Fuel Surcharge rates may also be implemented in 2008 to offset rising fuel costs. | Using Ocean freight can be an economical mode to transport products from Asia to the US when the shipment does not need to arrive within a week. With a recommendation by the TSA (Transpacific Stabilization Agreement), rates will increase in 2008. There may be a fuel surcharge implemented to offset the rising fuel costs. The members of the TSA expect to raise the rates for a 40-foot container from Asia to the US by $400 - $600. They are also looking into imposing a $400 surcharge during the peak season from June to October in 2008. Also the TSA is looking to implement a fuel surcharge which has previously been included in the rates. Ronald Widdows, chairman of the TSA stated, “Lines will, of necessity, be pressing the issue of a full, floating bunker charge very seriously in upcoming contract negotiations. Fuel prices are far too volatile, and ocean carriers are far too exposed...to lock in a single price for a year.” | | |
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