CTSA LINES ANNOUNCE JANUARY 2011 RATE RESTORATION INITIATIVE
Strengthening demand heading into the holiday season highlights a need to restore depressed rates.

Ontario / November 17, 2011 Container lines serving the Asia-Canada freight market have adopted a schedule of across-the-board rate adjustments aimed at reversing the steady revenue erosion seen in the trade throughout 2011.

Member lines in the Canada Transpacific Stabilization Agreement (CTSA) say the rate changes will apply to all coasts, effective by no later than January 1, 2012, and are intended to achieve an additional minimum US$400 per 40-foot container (FEU).

CTSA indicated that carriers have experienced sharp revenue declines in the past year, to levels that are no longer compensatory or sustainable going forward given rising cargo handling, inland transport, equipment and other costs. Individual lines will, on a case by case basis, be looking at any opportunities to improve individual rates prior to January 1.

CTSA is a discussion forum of 10 major container shipping lines serving the trade from Asia to ports and inland points in Canada. Members include: