Member lines - "K" Line, CSCL, Maersk, CMA CGM, MSC, Cosco, NYK, Evergreen, OOCL, Hanjin, Yangming, Hapag-Lloyd, Zim and Hyundai - also predict that the Asia-US freight market will grow 6-8 per cent in 2010.
As the TSA heads into months of contract talks, member lines "reiterated their support for the recommended guideline rate increases of US$800 per FEU for cargo moving to the US west coast and $1,000 per FEU for cargo moving to the US east and Gulf coasts, as well as US interior points," said the statement.
Increases would take effect May 1 in most cases, said the TSA statement. "Even if the scheduled increases are fully achieved, that will at best restore some, but not all freight rates to late 2008 levels, which were viewed at the time as barely compensatory," it said.
TSA said that container lines in aggregate lost, by various estimates, $15-20 billion in 2009 worldwide as the direct result falling demand and a decline in rates, and liner shipping industry return on capital invested fell to -6.5 per cent.
TSA cited Drewry Shipping Consultants estimates of further losses of more than $7 billion during 2010.
In the transpacific, demand fell by more than 15 per cent in 2009, while rates fell by a third to more than half, depending on commodity and routing.
"Transpacific container lines took dramatic, emergency steps to cut costs and preserve basic service levels during a period of unprecedented turmoil," said TSA chairman and Hanjin CEO YM Kim.
"In the process, freight rates fell to unsustainable levels that were locked into 12-month contracts. The key to reinvestment and service expansion in the trade is a sustained increase in cargo demand, accompanied by return to a viable, compensatory rate structure."
Despite sporadic reports of lines beginning to return to profitability, Mr Kim said global carriers may see better returns in other trade lanes or in non-container operations like bulk shipping or tankers. "The transpacific liner trade still loses money," he said.
Mr Kim said the TSA guideline emergency revenue charge of US$400 per FEU, which took effect January 15 contributed to improved revenues, but it was only a stopgap to provide interim rate relief for carriers under their existing contracts.
The guideline charge is to expire with those contracts and be replaced with rates negotiated in the new 2010-11 contracts.
During the Taipei meetings, TSA CEOs also discussed vessel space and equipment concerns raised by shippers, the US Federal Maritime Commission (FMC), and members of the US Congress.
The CEOs stressed that they are well aware of, and are committed to addressing, the short-term difficulties that arose in Asia in the run-up to the Chinese New Year holidays and factory closures.
The situation of tight space and rolled cargo on some sailings, they indicated, was due to sustained post-holiday consumer demand in the US, and an urgent need for retail re-stocking, and has already begun to ease.
It is expected that specific service issues will be resolved by individual carrier actions as they redouble their efforts to improve their services working together as partners with their customers.
Longer-term questions about restoration of assets and services in the Asia-US trade will be a function of demand trends in coming months, and carriers' ability to restore transpacific revenues to stable, compensatory levels, TSA said.
Coming out of the Chinese New Year holidays in Asia, carriers saw continued robust liftings into April, but market conditions through 2010 remain uncertain.
"The market forecast that matters most will be found in the volume commitments, service features and rate levels negotiated in upcoming contracts," explained TSA executive administrator Brian Conrad. "That is what will ultimately drive internal carrier decision making in the months ahead."
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