Transpacific Stabilization Agreement

April 14, 2021

Regarding the decision to shut down, Brian Conrad, TSA`s Executive Director, said that “the commercial and operational environment of Trans-Pacific trade and, more generally, global shipping, has undergone significant changes in recent years that are likely to continue into 2018 and beyond.” The Danish owner of the oil tanker Maersk Product Tankers has reached an agreement with China Development… Founded in 1989, the TSA was one of the first carrier discussion agreements concluded in the United States following the passage of the Shipping Act of 1984. In addition to the TSA`s trade initiatives, the agreement provided a forum for lines to discuss trade conditions, market developments, and trade and economic trends. Clearly, Carrier`s asset-sharing alliances and larger vessels have had a significant impact on the trans-Pacific market. Starting May 1, TSA announced the discussion agreement for 15 of the largest airlines in the eastern Pacific, under which the proposed minimum interest rate for container transportation via California ports will be $2,050 per 40-foot container and a proposed minimum rate of $4,100 per fire for the eastern and Gulf coasts. Severe traffic jams at West Coast ports have visibly slowed operations since last November. The slowdown continued until an agreement was reached on February 20. Airlines have increased the price of the seas because the contract negotiations of the ILWU and the port overload on the west coast have led to a kind of strong demand for space conquests on the east and gulf coasts by the canals of Panama and Suez. The decision will be announced after Maersk Line`s withdrawal from the agreement reported by The World Maritime News in December.

The TSA has been a strong voice for the maritime industry in the U.S. Trans-Pacific trade for nearly 30 years. Brian Conrad, TSA`s executive director, said the decision was made because of the significant changes in the business and operational environment of Trans-Pacific trade and ocean transportation around the world that have taken place in recent years and continue through 2018 and beyond. The Trans-Pacific Stabilization Agreement (TSA), which has been a strong voice for shipping companies in U.S. trans-Pacific trade, will close on February 8, 2018, after nearly 30 years. As we know after the traditional “off-peak” period of December February, after airlines and their customers reassess the market outlook, it will not be wrong to say that most contract negotiations will begin from March. During daylight saving time, with back-to-school products that are sold, in March and April, we may tend to see a short peak period. In June, airlines begin to increase their level of service when the holiday inventory is shipped so that the main peak season runs from July to October. Liner conferences have been victims of regulation and consolidation in the container shipping room. On Wednesday, the last major line conference, the Trans-Pacific Stabilization Agreement (TSA), announced that it would no longer exist from next month. Soren Toft has begun his new role as chief executive officer of the Mediterranean Shipping Company (MSC), … .

This is a sign for fewer airlines – more transparency. The Trans-Pacific Stabilization Agreement, like other “conferences,” was primarily a regional tariff-setting cartel; they have “stabilized” freight rates by placing them among the dominant member companies of trade. The EC has long concluded the FEFC with consistent allegations of price agreements. With the recent wave of consolidation that has created fewer airlines, these acerbic practices are harder to hide, even in lax systems. Consolidation has replaced agreements with monopolies, so the business environment has not changed for the shipper and the end consumer of the goods.