TSA Announce Increases to BAF, Suez and Panama Canal Fees, May GRIs, June PSS
The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223,
serving the East Asia/USA trade lane announced increases to Bunker, Suez and Panama Canal surcharges. The Suez
Canal Surcharge will be increased effective April 1, 2007 from US$ 60 to US$ 62 per 20/ft container and from US$ 120
to US$ 123 per 40/ft container. The Panama Canal Surcharge will be increased effective May 1, 2007 from US$
192 to US$ 212 per container, from US$ 10 to US$ 11 per metric ton and from US$ 4 to US$ 4.50 per cubic meter.
The Bunker Adjustment Factor (BAF) will increase effective April 1, 2007 to US$ 410/20ft container, US$ 545/40ft
container, US$ 615/40ft hi-cube container, US$ 690/45ft container and US$ 12/WM. This represents an increase
of approximately 19 percent over BAF for March 2007. Current Inland Fuel Surcharges will be maintained through
April 30, 2007 without change – these charges are US$ 174 per container for mini-land bridge (MLB) and inland
point intermodal shipments moving via rail, and from US$ 50 per container for local and regional truck transport to
“Group 4” points in California, Oregon and Washington, and for East Coast local store-door truck moves.
General Rate Increases (GRI) will take effect on May 1, 2007 of US$ 650 per 40ft container for inland point and
minilandbridge intermodal shipments, US$ 500 per 40ft container for cargo moving via East and Gulf Coast all-water
service, and reverse inland point intermodal (RIPI) moves, and US$ 300 per 40ft container for West Coast
port-to-port and “Group 4” shipments to California, Oregon and Washington. This GRI is part of the
Cost Recovery Program TSA announced in October 2006 to counterbalance cost inequalities due to an ever-widening
import/export gap and increasing operating costs. The TSA Carriers also announced they will impose a Peak
Season Surcharge (PSS) of US$ 400 per 40’ container, effective from June 15, 2007 thru February 28, 2008.
TSA member carriers are American President Lines, COSCO Container Lines Ltd., Evergreen Marine Corp.,
Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, Mitsui O.S.K. Lines, NYK
Line, OOCL and Yang Ming Marine. Visit www.tsacarriers.org for additional information.
FMC Docket 06-10: Sinotrans Container Lines Settles with Motor Carrier Group
The Federal Maritime Commission is reported to have approved a settlement in Docket 06-10 negotiated
between the American Trucking Associations’ Intermodal Motor
Carriers Conference (IMCC) and Sinotrans Container Lines, Co., Ltd. While this
settlement has not yet been officially announced by the FMC, the American Trucking Association and the Journal of Commerce both have reported it was recently approved.
In October 2006 the IMCC filed a complaint on behalf of Transport Express, Inc., a California
certified motor carrier alleging violations of the Shipping Act of 1984. According to the complaint, Sinotrans Container Lines,
Co., Ltd., a controlled carrier headquartered in the Peoples Republic of China and its California-located
affiliate, Sinotrans Shipping Agency, Inc., allegedly violated Section 10 of the Shipping Act,
which requires ocean common carriers to observe just and reasonable regulations and practices. Transport
Express alleged Sinotrans wrongfully terminated its interchange rights after a dispute over charges for equipment
Sinotrans claimed Transport Express damaged. These interchange rights issued under the Uniform Intermodal
Interchange Agreement (UIIA) and Facilities Access Agreement allowed Transport Express to dray containers from
Sinotrans’ pier side to shippers. According to the settlement reached in February, Sinotrans agreed to
reinstate Transport Express’s interchange rights, pay damages, and further agreed to refrain from terminating
any motor carrier’s UIIA interchange rights due to similar circumstances.
WTSA Increases BAF and CAF, General Rate Increase Effective April 1, 2007
The Westbound Transpacific Stabilization Agreement (WTSA), whose member lines serve the US export
trades from the USA to East Asia have announced increases to their Bunker Adjustment Factors (BAF), Currency
Adjustment Factors (CAF), and a General Rate Increase (GRI) to go into effect April 1, 2007. BAF effective
from April 1, 2007 to April 30, 2007 will be US$ 436 per 20ft container, US$ 545 per 40/45ft container, and US$ 28
per WM. CAF effective from April 1, 2007 to June 30, 2007 are as follows: Japan 0%, Korea 0%, Taiwan 5%,
Singapore 12% (increase of 2%). Inland Fuel Charges on shipments from US inland points will remain at the
current levels of US$ 174 per container for rail and intermodal rail/truck shipments, and US$ 50 per container for
local/regional truck shipments at least until April 30, 2007.
A GRI for all dry cargoes not covered by commodity-specified rates will take effect April 1, 2007. There are
several exceptions to GRI, and amounts for LTL cargo may vary. GRI from US Ports via All Water Service: US$ 40
per 20ft container, US$ 50 per 40ft container, US$ 50 per 40ft high-cube container. GRI from US Inland
Points via Rail and Rail/Truck service, and from US Atlantic and Gulf Ports via Mini-Landbridge (MLB) service: US$
240 per 20ft container, US$ 300 per 40ft container, US$ 300 per 40ft high-cube container.
The 11 member carriers of WTSA are American President Lines, China Shipping Container Lines, COSCO
Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine,
“K” Line, NYK Line, OOCL and Yang Ming Marine. For more
information visit www.wtsacarriers.org
TACA Announces Tariff Rate Class Restoration and Panama Canal Fee Increases
The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the trade between the
USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, announced a Tariff Rate Class
Restoration Program to go into effect April 1, 2007. TACA remarked that after review of the 2006
Trans-Atlantic trade rates and capacity, these rate increases were determined necessary to maintain and improve the
viability of services.
Westbound from N.Europe to USA Eastbound from USA to N.Europe $ 320 per 20ft container $ 160 per 20ft container $ 400 per 40ft/45ft container $ 200 per 40ft/45ft container
TACA also announced increases to its Panama Canal Transit Fees, effective May 1, 2007. This increase will
push fees for both eastbound and westbound shipments up to $212 from $192 per container. Effective May 1,
2007, the Panama Canal Authority will implement the third and final tier of its three-year fee increase. The Panama Canal Authority has also announced
further toll increases over the next two years to fund waterway expansion projects.
TACA will retain current Bunker Adjustment Factors (BAF) through April 15, 2007. TACA’s current
Currency Adjustment Factor (CAF) of 8 percent will also remain unchanged at least until April 15, 2007. BAF
thru April 15, 2007 are as follows: to/from Atlantic/Gulf Coast Ports, US$ 395/20ft container, US$ 790/40/45ft
container and US$ 40/WM; to/from Pacific Coast Ports, US$ 593/20ft container, US$ 1186/40/45ft container and
TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line
and OOCL. Revisions to surcharges are published in TACA’s relevant FMC tariffs, and are
shown on its website: www.tacaconf.com
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Vol. 11 No. 3, March 5, 2007
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