TWRA to cut cost factors
TRANSPACIFIC Westbound Rate Agreement (TWRA) will lower its currency adjustment factor (CAF) and fuel adjustment factor (FAF) surcharges next month.
TWRA said the move followed strengthening of the US dollar in Asian markets and a decline in fuel prices in key trans-Pacific markets.
TWRA CAFs will be reduced from 72 to 56 per cent on Japan cargo; from 6 to 5 per cent on South Korean cargo; from 11 to 10 per cent for Taiwan moves; and from 17 to 16 per cent for shipments for Singapore.
The FAF, which applies uniformly to all Asian destinations, will be lowered from US$80 to $60 per 40-foot and 45-foot container; from US$64 to $48 per 20-foot container.
The FAF will also be reduced from US$40 to $30 per vehicle; and from $4 to $3 per revenue tonne by weight or measure.
Both surcharges are adjusted quarterly and are set using formulae that measure the impact of exchange rate and marine fuel price shifts on overall carrier costs.
TWRA is a rate-making group of 10 ocean and intermodal transport companies serving the trade from the US to destinations throughout Asia.