American Airlines Expands Business ExtrAA Program
American Airlines introduced their redesigned Business ExtrAA program today, which allows cargo customers the opportunity to earn travel awards for booking cargo shipments. The redesigned program allows cargo shippers to earn travel awards for all shipment regardless of booking. The prior program allowed shippers to earn points for shipments booked online only.
Via www.aa.com:
“At American Airlines Cargo we are focused on maintaining and rewarding customer loyalty. We believe the enhanced Business ExtrAA program for AA Cargo provides an excellent way to add value and to let our customers know how much we appreciate their business,” said Dave Brooks, President – American Airlines Cargo Division.
Customers can earn 2,000 points for every $40,000 USD in eligible shipping revenue on American Airlines up to an annual maximum of 200,000 points.
TSA Carriers Call for Emergency Rate Hike
December 15, 2009 by Splatty
Filed under Seafreight
Get ready for another rate increase on the Transpacific Eastbound trade lane.
The TSA carriers have announced an “emergency revenue charge” scheduled to go into effect on January 15, 2010. The adjustment will act as an interim increase until the 2010 contracts are negotiated in April of next year. The scheduled increase is as follows:
USD 320 per 20’ container
USD 400 per 40’ container
USD 450 per 40’ hi-cube container
USD 505 per 45’ hi-cube container
This increase is in addition to the increase that the carriers announced back in October that would take place during contract negotiations next Spring. In October, the TSA carriers advised that they will seek to increase freight rates by $800 per FEU to the West Coast and $1,000 to the East Coast.
From what I am hearing, mitigating the January 15th increase will be extremely difficult. The driving force behind the increase is the financial state of the carriers coupled with decreased capacity due to the carriers withdrawing vessel space. I would expect many carriers will continue to remove additional capacity out of the market over the winter period.
As always, check with your forwarder regarding the possibility of mitigating the proposed increase.
TSA Carriers:
APL, Ltd.
China Shipping Container Lines
CMA-CGM
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag Lloyd AG
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha (K Line), Ltd.
Maersk Lines (membership effective December 24, 2009)
Mediterranean Shipping Company (MSC)
Nippon Yusen Kaisha (N.Y.K. Line), Ltd.
Orient Overseas Container Line (OOCL), Inc.
Yangming Marine Transport Corp.
Zim Integrated Shipping Services
Maersk Line to rejoin the TSA
November 9, 2009 by Splatty
Filed under Seafreight
Maersk Line has filed an application to rejoin the Transpacific Stablization Agreement (TSA) after taking a hiatus in 2004. Maersk was an original member of the TSA since its inception in 1987.
Via tsacarriers.org:
“We’re pleased that Maersk sees value in TSA and wishes to re-join the agreement,” said Ronald D. Widdows, TSA chairman and Group President & CEO of NOL, parent company of member line APL Ltd. “With the unprecedented challenges the industry is facing due to the current global economic crisis, TSA believes it is helpful to have another voice participating in the dialogue to seek solutions that will benefit both carriers and shippers.”
According to a press release on Maersk Line’s website, the decision to rejoin the TSA comes after “the trans-Pacific trade has incurred industry loses estimated to be 3 billion USD or more”.
Via Maerskline.com:
“Five years ago, the market conditions were vastly different than they are today,” said Lars Mikael Jensen, Vice President Pacific Trade, Network and Product, Maersk Line. “Maersk Line is convinced that restoring profitability long-term is needed in the marketplace and has demonstrated market leadership in this regard. It is imperative that service levels involving vessel capacity and string frequency across the Pacific do not suffer as a result of continued rate deterioration,” he continued. “The purpose of Maersk Line’s participation in the TSA is to develop a platform that allows customers and carriers to find stability for years to come, avoiding the gross fluctuations of 2009. This business must be managed for long-term health and a return to profitable and sustainable operations.”
Current members include:
APL, Ltd.
China Shipping Container Lines
CMA-CGM
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag Lloyd AG
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha (K Line), Ltd.
Nippon Yusen Kaisha (N.Y.K. Line), Ltd.
Orient Overseas Container Line (OOCL), Inc.
Yangming Marine Transport Corp.
Zim Integrated Shipping Services
Additional GRI scheduled – Transpacific Westbound to Asia
November 6, 2009 by Splatty
Filed under Seafreight
Anyone else having a hard time trying to stay on top of all of the recent GRI’s?
The Westbound Transpacific Stabilization Agreement (WTSA) carriers have announced an additional general rate increase for all cargo from the U.S. to Asia. This latest GRI is scheduled to go into effect on December 1. Keep in mind that this GRI is in addition to the GRI that went into effect on September 1.
Guideline GRI amounts are as follows:
Dry Cargo
(effective December 1, 2009)
$100 per FEU / $80 per TEU via SoCal ports
$150 per FEU / $120 per TEU via other USWC, USEC and intermodal
Refrigerated Cargo
(effective : January 15, 2010)
$250 per FEU / $200 per TEU via USWC
$300 per FEU / $240 per TEU via USEC and intermodal
Talk to your forwarder about mitigating the increase if possible. From everything I am hearing, mitigation of the GRI will be difficult.
Visit the WTSA website for additional details.
