container shipping lines of the Transpacific Stabilization Agreement (TSA) operating
in the trade lane from Asia to the US held CEO-level meetings in Singapore in
December, continuing to evaluate their positions and options in a seriously weakened
were already reeling from the growing global economic downturn during Q3 2001,
and the shocking events of September 11 have disrupted trade and commerce to an
even greater extent. The lines now expect flat cargo growth for the second half
of 2001 and much of the first half of 2002.
market trends, plus the delivery of a new round of larger ships intended to meet
long-term trade growth, have placed increased pressure on scheduled container
services in terms of vessel utilization, operating costs and rates. Lines say
they intend to take a comprehensive, multi-pronged approach to restore their balance
sheets to reasonable levels in coming months, in order to sustain service quality
and schedule reliability.
carriers are also advising that, after steady declines in freight rates during
2001, some form of revenue restoration will necessarily be a key element in their
2002-03 contract negotiations. Additional details, they said, will be announced
in due course.
comprises 14 major container shipping lines serving the trade from ports and inland
points in the US.