English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

FMC green light for M2

WASHINGTON, DC: The U.S. Federal Maritime Commission (FMC) has approved the proposed Maersk/MSC Vessel Sharing Agreement (M2) between the U.S. and Asia, North Europe, and Mediterranean trades with effect from October 11, 2014.

The FMC concluded the agreement is not likely to produce an “unreasonable” increase in costs or reduction in service.

FMC chairman Mario Cordero said the approval is the result of a comprehensive review and takes into account questions by other FMC commissioners as well as comments from the European Shippers Council – the only public reaction to the agreement. “I am confident that the reporting requirements will ensure that the commission will have timely and relevant information to monitor activity under the agreement, and will enable the FMC to act quickly should it be necessary," added Cordero.

The FMC green light follows a decision by the 15 box line members of the Transpacific Stabilization Agreement (TSA) to implement contract rates for 2015-16 rather than scheduled general rate increases.

maerskmscThe group has also agreed new rates for 20-foot and high-cube 40-foot containers that more fully reflect the cost of loading and handling; full recovery of rising intermodal costs due to inland transport capacity and congestion issues; a revised bunker surcharge formula more accurately reflecting current vessel size and fuel consumption; and recovery of low-sulfur fuel costs as tighter emissions standards take effect in January 2015 for vessels operating in North American coastal waters.

TSA is recommending its members seek 2015-16 contract rates “at levels at or above US$2,000 per 40ft to the West Coast and US$3,500 to the East Coast from all North Asia ports” while for Southeast Asia rates should be at least US$2,150 to the West Coast and $3,650 to the East Coast.

“Carriers feel an urgent need in the current market environment to view pricing differently,” said TSA executive administrator Brian Conrad. “Rate minimums are an effort to better reflect actual costs of service, rather than simply recommending a specific increase to whatever baseline rate is in the tariff based on short-term supply-demand conditions.

“Rates will continue to fluctuate with the market according to origin-destination pairs, service requirements, routing and so on, but a common base guideline is essential for lines to maintain basic service levels and, beyond that, expand their offerings based on customers’ needs,” he added.

As already announced by Maersk, TSA says the new rates will also carry a low sulfur fuel surcharge following new MARPOL emission rules that will come into force next year: “The stricter 0.1 percent emissions mandate, requiring a shift to costlier marine gas oil (MGO), is of special concern because it will hit the trade all at once and no one can predict just yet where prices will settle,” said Conrad. “That in turn makes it difficult to adapt our existing formula, but we expect to have a clearer picture closer to January 01, in time to announce a charge with the necessary advance notice.”

News

Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...
Written on 07/11/2017, 19:59
costa-rica-signs-biofuel-deal-with-klmAMSTERDAM: November 07, 2017. As delegates to the 2017 UN Climate Change Conference (COP 23) meet in Bonn this week, KLM and the government of Costa Rica...
Written on 06/11/2017, 02:27
qatar-airways-takes-cathay-pacific-stakeHONG KONG/DOHA: November 06, 2017. Qatar Airways is buying 9.6 percent of Cathay Pacific Airways (CX) for HK$5.16 billion (US$661 million). The shares...
Written on 03/11/2017, 15:09
slower-airfreight-growth-in-2018-says-iataGENEVA: November 01, 2017. IATA reports a 9.2 percent increase in flown freight in September 2017 compared to the same month last year as capacity rose...
Written on 01/11/2017, 19:42
heathrow-misery-must-end-say-forwardersLONDON: November 01, 2017. The head of the UK's freight forwarder association says his members "want action, not words" to resolve congestion at...
Written on 30/10/2017, 21:03
china-s-one-belt-one-road-gets-new-rail-linkBAKU, Azerbaijan: October 30, 2017. The Baku-Tbilisi-Kars (BTK) railway connecting Azerbaijan, Georgia and Turkey has opened following the completion of a...
Written on 29/10/2017, 19:47
dp-world-to-support-us-500-billion-saudi-projectRIYADH, Saudia Arabia: October 26, 2017. Speaking at the Future Investment Initiative this week, DP World chairman and CEO Sultan Ahmed Bin Sulayem...
Written on 27/10/2017, 20:40
deutsche-post-dhl-delivers-unity-symbol-ahead-of-climate-conferenceBONN: October 26, 2017. As the official logistics partner for the UN Climate Change Conference (COP23) in Bonn next month, Deutsche Post DHL has shipped a...
Written on 26/10/2017, 19:41
change-of-chairs-at-tiacaMIAMI: October 26, 2017. The Board of the International Air Cargo Association has appointed Jan de Rijk Logistics CEO Sebastiaan Scholte its new chairman...
Written on 26/10/2017, 16:06
amazon-to-launch-keyless-home-deliverySEATTLE: October 25, 2017. Amazon will launch its 'Amazon Key' home delivery service for Prime members in 37 U.S. cities on November 08 at a one-time cost...
Written on 25/10/2017, 20:52
delta-introduces-a350-capacity-as-pharma-growth-continuesATLANTA: October 25, 2017. Delta Air Lines is to launch its A350-900 aircraft on flights from Detroit to Tokyo-Narita on October 30 followed by services...
Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...
Written on 17/10/2017, 20:05
britain-should-remain-in-the-eu-says-oecdLONDON: October 17, 2017. In its latest survey of the UK economy the OECD says the positive impact on growth "would be significant should Britain remain...

- powered by Quickchilli.com -