WTSA adjusting freight rates - Paper - Westbound Transportation Stabilization Agreement - Brief Article

Recycling Today, Nov, 2001

Ocean container shipping lines have agreed to place a floor under freight charges for recovered fiber, while raising existing rates on scrap metal. The two commodities, along with hay, have seen an erosion in rates to levels generally less than what it costs a carrier to move an empty container to Asia.

Beginning this December, lines plan to implement minimum rates for recovered fiber in their individual tariffs from all U.S. coasts. According to the Westbound Transportation Stabilization Agreement cartel, rates will vary by destination. All recovered fiber minimums will be exclusive of applicable documentation fees and certain other charges to specific destinations.

Starting Jan. 1, 2002, ocean lines announced plans to raise metal scrap rates by $100 per 20-foot containers and by $200 per 40-foot container.

Carriers said the downward trend in rate levels has been noticeable in recent months. The result has been greater pressure to ship recovered fiber, scrap metal, hay and other low-rated cargo at levels that make only a partial contribution to the cost of repositioning a container back to Asia to meet equipment demands.