Rate pact relaxes contract policies

The Transpacific Westbound Rate Agreement (TWRA) has adopted more flexible contracting policies allowing United States exporters of dry cargo to Asia to negotiate individual service contracts with its members.

TWRA, a rate-making body serving ports and inland points in the US to Asian destinations, will file amendments to its basic agreement to allow such deals.

'Individual contracts will be subject to broad agreement guidelines, to be developed and adopted sometime in early February,' the TWRA said.

TWRA managing director William Anderson said moving to a more market-based approach to contracting had been a subject of internal discussion for some time.

'We now believe we have a workable system in place to address service and pricing needs in the trade.' Mr Anderson said logistics partnerships between shippers and individual carriers had, in recent years, created a growing need for detailed service requirements and predictable prices on which to base bids and forward sales in highly competitive commodity markets.

As the structure of trade had changed, TWRA's structure also was changing, he said.