News / Falling transpacific box shipping rates undermine prospects for new contracts

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Minimum contract freight rates recommended by the 15-carrier Transpacific Stabilization Agreement (TSA) are under threat from depressed spot rates on the route, despite estimates of double-digit growth and an 8% year-on-year increase in April

The TSA decided last October to recommend minimum rates, for annual contracts between Asia and US ports that run from 1 May, instead of the organisation’s normal practice of recommending increases.

The minimum $2,000 per 40ft from Asia to US west coast, and $3,650 level for Asia to ...