Container shippers impose Asia-US fuel surcharges

Container shipping lines plying the busy trade route between Asia and the United States to be imposed fuel surcharges immediately to offset surging oil prices.

The Transpacific Stabilization Agreement (TSA) container carrier group, representing 14 shipping firms that sail from Asia to US ports, said that members would seek to impose the full surcharge on bunker fuel in ongoing contracts at Singapore. The new contracts starting from 2008 will be subjected to the floating surcharge, according to its website, which ranges from $545 per 20-foot container, up to $860 per 45-foot container for the month of November. Bunker fuel prices in Singapore, the world's top ship bunkering port, have climbed 70 per cent this year to around $478 a tonne, after an all-time high $508 last week when oil futures hit a record over $98 a barrel. TSA members comprise NOL's American President Lines, CMA CGM, Cosco Container, Evergreen Marine, Hanjin, Hapag Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Mitsui O S K, Nippon Yusen Kaisha, Orient Overseas, Yangming Marine, Mediterranean Shipping and Zim Integrated Shipping. The TSA and its counterpart the Far Eastern Freight Conference, which covers Asia-Europe, say they do not set container freight rates as that would constitute an illegal cartel in most countries. The group looks at factors such as economic growth and fuel costs and then recommends price adjustments and each shipping line has its own rates.
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