Skip to content
Search AI Powered

Latest Stories

inbound

Trans-Pacific carrier discussion agreements begin trial merger

If U.S. government approves, TSA and WTSA will merge after a two-year test run; move would have no impact on rates or capacity, administrator says.

Most of the ocean carriers plying the trans-Pacific trade lanes belong to two separate "discussion agreements": the import-focused Transpacific Stabilization Agreement (TSA) and its export counterpart, the Westbound Transpacific Stabilization Agreement (WTSA). If the U.S. Federal Maritime Commission (FMC) gives its blessing, however, those groups will merge into a single entity covering both routes.

The TSA and WTSA describe themselves as "research and discussion forums" for their members, who include some of the world's largest ocean carriers. Under U.S. law, members are allowed to develop "voluntary, non-binding rate and service guidelines" that they "may" use in their contract negotiations with importers and exporters. They also can discuss efficiency improvements, cost control strategies, market conditions, and standards for documentation and technology systems. They may not jointly set rates or limit capacity. Over the years, however, some shippers have expressed skepticism about how closely carrier members adhere to those prohibitions.


In November 2012, TSA filed an amendment with the FMC requesting authorization to expand its scope to include the westbound trade and to "suspend" the WTSA, said Brian Conrad, administrator for both bodies. After getting some feedback from the trade community and requesting some "tweaks" to the plan, the agency authorized a two-year trial that went into effect in April, Conrad said at the Coalition of New England Companies for Trade (CONECT) annual Northeast Trade and Transportation Conference in Newport, R.I.

The primary reason for the proposed merger, Conrad said, is to eliminate duplicate structures and reduce administrative costs. It will also allow carriers to discuss "round-trip network issues," he said, noting that although the same carriers belong to both agreements, they previously were prohibited from talking about both eastbound and westbound business in meetings.

Any merger—even of an administrative body—is bound to raise the specter of rate increases and capacity consolidation, and audience members questioned Conrad on that score. "Market fundamentals" will continue to drive rates, said Conrad, who insisted that the group will continue to "religiously" observe the prohibition against discussions about capacity.

The Latest

More Stories

Trucking industry experiences record-high congestion costs

Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

Keep ReadingShow less

Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

Keep ReadingShow less
forklift driving through warehouse

Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

Keep ReadingShow less
map of truck routes in US

California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

Keep ReadingShow less
screenshots for starboard trade software

Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

Keep ReadingShow less