Source: CIFFA E-Bulletin

The carrier members of the Transpacific Stabilization Agreement (TSA), announced they will increase bunker charges for March 2010. March 2010 Bunker Adjustment Factors (BAF) calculated using TSA’s old monthly formula will increase to US$724 per 20ft container, US$905 per 40ft container, US$1018 per 40ft hi-cube, US$1146 per 45ft, and US$20 per WM (LCL). The “new formula” BAF for the January-March 2010 quarter is US$348 per 40ft to US Pacific Coast Ports and US$689 per 40ft to US Atlantic & Gulf ports, with other container sizes charged accordingly.

TSA lines also recently announced an improved outlook for Asia-U.S. trade in 2010 based on a combination of economic indicators and forward bookings during the off-season Lunar New Year period. Carriers are looking forward to a significant year-on-year increase in 2010 traffic, since 2009 cargo demand likely fell 15-20 percent below 2008 levels. Among the factors contributing to the positive forecast are the likely bottoming of the U.S. job market; the better-than-expected 2009 holiday sales, and the rising U.S. consumer confidence and spending. TSA reported that forward bookings for individual TSA lines suggest that vessel utilization levels in the trade will remain in the mid-high 90% range in most trade segments in the coming months. TSA carriers’ short-term focus remains revenue improvement in the second half of the 2009-10 contract year, with many rates in major commodity segments down $1,000 or more per 40-foot container from late 2008 levels. Many TSA members have implemented an Emergency Revenue Charge (ERC) that went into effect January 15, 2010.