Rate body to adjust currency, fuel fees

PUBLISHED : Friday, 28 November, 1997, 12:00am
UPDATED : Friday, 28 November, 1997, 12:00am

The Transpacific Westbound Rate Agreement (TWRA) will adjust its currency and fuel surcharges from January 1.

The TWRA, a rate-setting group of 11 ocean and intermodal carriers, said this was due to the continued strengthening of the US dollar against some Asian currencies, and a rise in marine fuel prices during the autumn months.

The agreement will lower its currency adjustment factor (CAF) surcharge on shipments moving from the United States to Japan from 43 per cent to 39 per cent; on cargo moving to Taiwan from 9 to 8 per cent; and on cargo bound for Singapore from 15 to 13 per cent.

A TWRA CAF for Korea shipments, which was reduced to zero earlier this year as a result of the sharp weakening of the Korean won against the dollar, will remain suspended in the coming quarter.

Higher fuel prices have triggered an increase in TWRA's fuel adjustment factor (FAF) surcharge, under the agreement's pre-established calculation formula.

Effective for the quarter beginning January 1, 1998, the FAF - applicable to all shipments carried by TWRA member lines - will be raised from US$100 to $120 per 40-foot and 45-foot container; from $80 to $96 per 20-foot container; and from $5 to $6 per revenue ton for cargoes not rated on a per-container basis.