Dive Brief:
- A group of shipping companies has endorsed rate increases for the transport of recyclables to Asia.
- Companies acting as part of the Transpacific Stabilization Agreement (TSA) Westbound group said that higher prices have prompted carriers to alert the group that base cargo rates are not sustainable.
- The new rates take effect November 1, and are recommended by the group for shipments of paper, metal, and plastic scrap, including e-waste, to Asia.
Dive Insight:
Shipping firms say low demand and escalating costs in recent years have forced the TSA to set the new minimum rates. A TSA spokesperson said that the group has never made a recommendation regarding minimum price levels.
The group also announced that more price increases are expected in December “and beyond.” TSA Westbound advises minimum rates of $300 per 40-foot equivalent unit (FEU) from LA/Long Beach and $750 per FEU for all other water shipments on the East Coast and Gulf Coast that transport to base ports in China.