Transpacific Stabilization Agreement aims to simplify contracts

TSA filed the amendment for a 24-month trial period, subject to review at the end of that time.

By ·

The members of the Transpacific Stabilization Agreement (TSA) have filed an amendment with the U.S. Federal Maritime Commission (FMC) that would expand TSA’s scope to include the entire transpacific round trip, including the westbound trade.  It is expected that once the amendment becomes effective, the lines would suspend activities of the existing U.S.-Asia carrier group, the Westbound Transpacific Stabilization Agreement (WTSA).  TSA filed the amendment for a 24-month trial period, subject to review at the end of that time.

As reported in LM last August, APL was the latest carrier to opt out of the WTSA.

Streamlining the agreements and cutting cost is the primary purpose of the filing, said TSA Executive Administrator Brian Conrad.  Maintaining separate carrier agreements, each with its own meetings, dedicated carrier staff support, compliance requirements and administrative overhead is less justifiable than in the past, especially given the sustained low-revenue environment seen in recent years.

In this regard, TSA executive administrator, Conrad noted that nearly all other major trade lanes with carrier agreements are represented by a single group which includes the entire round trip trade in its scope.

“The same lines carry the cargo in both directions on the same vessels, as part of their round-trip service rotations,” Conrad said. “Since they operate their business on round trip basis, it only makes sense to view the two segments as an integrated whole from an Agreement perspective as well.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Ocean Cargo · Ocean Freight · Trade · All Topics
Latest Whitepaper
Revisiting Supplier Relationship Management to Boost Real Value in the Supply Chain
Supplier relationship management (SRM) initiatives are on the rise, and companies who successfully implement these programs can realize a significant return on their technology investments.
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Cross Border 2017: Managing Your Supply Chain for Efficient and Secure Crossings
In this webinar, we'll unveil best practices to establish a world class logistics operation that improves safety, security, efficiency, and customer service levels at a lower cost.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...