TSA to levy US$100/FEU - $90/TEU intermodal fee November 15

THE Transpacific Stabilisation Agreement (TSA) carriers intend to impose intermodal charges to cover the cost incurred by driver shortages, poor train service and port congestion.

Most TSA lines will levy US$100 per FEU and $90 per TEU from November 15 and no later than December 1.

"Congested US port terminals, harbour, and over-the-road truck and driver shortages, slower trains, and longer rail terminal dwell times have driven intermodal rates and cargo-handling costs up sharply" said the TSA statement.

"Asia-US container lines, still heavily reliant on intermodal service, have now been forced to respond with intermodal door delivery charges to recover those costs," the statement said.

TSA says truck and driver shortages, rail and terminal congestion have pushed up intermodal rates and cargo handling costs.

A combination of railcar shortages, freight backup at intermodal terminals, and a shift of intermodal cargo to more costly pure-truck moves was the greatest contributor, said TSA administrator Brian Conrad.

"Carriers are doing their best given the service and infrastructure constraints we see across the supply chain. For now, as we all work on solutions, the key is cost recovery," he said.

TSA members include APL, China Shipping, CMA CGM, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, Maersk, MSC, NYK, OOCL, Yang Ming, and Zim.