TACA pushes up westbound rates

Its business plan for 2004 envisages a hike of $400 per teu from Europe to the US.

It said: “The overall westbound trading pattern for 2003 to date is one of continuing growth in cargo flows in the region of 4% to 5% compared with 2002.

“The demand for westbound space, which has been strong during the current year, is expected to be similar for 2004 and the projected trade-wide supply and demand experience for 2004 is not anticipated to be materially different from the current year.

"Despite constant efforts to reduce and eliminate costs throughout the entire area of providing and maintaining quality service, cost increases have been experienced, charter rates in particular having sharply increased, and the TACA 2004 Conference Business Plan seeks to recover part of such cost increases.” Further rate revisions can be expected at a later stage in 2004, it added.

TACA has also recently announced it is pushing up rates on eastbound routes. It will increase eastbound tariff rates by $120 per teu and $150 per 40-foot unit (feu) from 1 January next year.

On 1 October, tariffs from US Atlantic and Gulf coast ports rose by $160 per teu and $200 per 40-foot box (feu). From west coast terminals, this increased to $240 per teu and $300 per feu.

In June, TACA announced westbound rises of $400 per teu and $500 per feu. It said it would not seek any further westbound increases until March 2004, adding that it was looking for tariff stability. Its members are ACL, Maersk Sealand, MSC, NYK, OOCL, Hapag-Lloyd and P&O Nedlloyd.

TradeWinds