Transpac shipping charges set to rise

Pressured by steadily rising export growth in China and rising fuel charges, Mitsui OSK, Neptune Orient and a dozen other shipping lines will increase transpacific rates on US west coast-bound cargo by 7.6%, raising the cost of shipping a 40-ft container by US$285. The new rates under the Transpacific Stabilization Agreement, which covers 14 carriers altogether, take effect in May. Charges for US east coast shipments will increase by US$430 a container. An analyst quoted in one report said he doubted the higher charges would impact demand for Asian goods. Asia-US freight traffic is projected to rise over 10% in the next 12 months.