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 Patrick Burnson, Executive Editor
November 28, 2012 - LM Editorial

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Straying from its typical seasonal trajectory, United States-bound waterborne shipments dipped from March to April, according to data recently issued by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

One theme tied together all of the presentations, regardless of the topic: The importance of data.

U.S. carloads were down 10 percent annually at 269,092, and intermodal volume saw a 4.9 percent annual gain to 280,107 containers and trailers.

The Chamber of Marine Commerce today joins governments, policymakers, industry and the general public in celebrating the nation’s merchant marine industry, but also urges reforms to ensure greater industrial competitiveness, jobs and prosperity.

Many companies are turning to Global Trade Management (GTM) as a viable solution to address the complexities associated with international trade. But how do you successfully build a business case for GTM software?

Article Topics

News · Ocean Freight · Ocean Cargo · Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA