US To Asia Peak Season Rate Increase

International shipping from the United States to Asia is entering its peak season during this time. And the big news this year is that there is slated to be an increase in the ocean freight rates for shipping from the US to Asia. The Journal of Commerce recently reported that 40-foot containers from the US to Asia might increase to as much as $200 by the middle of November. The rate increase is significant news for those who depend on US to Asia shipping.

The Transpacific Stabilization Agreement (TSA) Westbound Carriers are pushing for the rate increase. The TSA performs research on container shipping. It should be noted that the TSA does not formally set rates for the carriers. Rather, they make recommendations. The November shipping hike is an example of one of those recommendations. Their members are the major shipping carriers. In order for a recommendation to pass the TSA, their members must unanimously pass it. And the recommendations are voluntary and non-binding.

Some of their members including Evergreen Line, Hapag-Lloywd, the Mediterranean Shipping Company and Maesrk. And Maersek formally publicized rate increases of $100 per 40-foot container. Legally, shipping carriers must report there will be a cargo shipping rate increase at least 30 days in advance, but they don’t have to report on the exact amount of an increase until right before. So the rates could be different by the middle of November. Speak to your freight forwarder to get help when dealing with these future rate increases.