Service contracts to include mixed cargo as pact cover grows

PUBLISHED : Friday, 30 August, 1996, 12:00am
UPDATED : Friday, 30 August, 1996, 12:00am

The Transpacific Westbound Rate Agreement (TWRA) has expanded its service contract programme to include mixed commodity 'freight-all-kinds' (FAK) cargo.

The move will enable FAK shippers to save money by shipping under TWRA service contracts.

The TWRA has sent a letter offer to FAK shippers using one or more of its 11-member shipping lines.

The offer is expected to benefit third-party transportation providers such as freight forwarders and consolidators, as well as exporters who are beneficial cargo owners.

TWRA FAK service contracts are available until September 30. All contracts signed under the offer will expire no later than June 30, 1997.

Contract discounts are based on origin and destination locations and volume commitment. There are three discount tiers, depending on whether customers commit at least 300, 600 or 900 40-foot containers.

A 'most-favoured shipper' clause in the contracts will insulate customers from independent actions taken by TWRA lines to lower tariff rates.

The TWRA is a rate-making group of 11 ocean and inter-modal transportation companies serving the trade from ports and inland points in the United States to destinations throughout Asia and the Indian subcontinent.

Members include: American President Lines, A. P. Moller-Maersk Line, Hapag-Lloyd, Kawasaki Kisen Kaisha, Mitsui OSK Lines, Nedlloyd Lijnen, Neptune Orient Lines, Nippon Yusen Kaisha, Orient Overseas Container Line, P&O containers and Sea-Land Service.