BOX SHIPPERS in the Asia-US trade are likely to see rates continue to rise and capacity remain tight in 2H10 as liners seek to bolster revenue lost in the depths of the recession.

The 16 carriers that make up the Transpacific Stabilization Agreement said yesterday that while recent revenue gains have helped shore up their balance sheets, the increases achieved in the current contract round still don't restore rates to 2008 levels. Individual lines reaffirmed previously announced peak-season surcharges of $300-500/container.

"After last year, no carrier is going back to operating vessels underutilised and at non-compensatory rates. Every sailing and every equipment turn will have to be economically justifiable," said Hanjin Shipping president YM Kim.

1Q10 box volume among TSA members in the Asia-US trade was up 13% to 1.27M teu, the group reported, which is still below the same period in 2008. May volumes were up 24% y-o-y to the West Coast and 31% on all-water routes to the East and Gulf coasts.

TSA executive administrator Brian Conrad added that competition for leased and owned equipment has intensified as container production in China has been slow to ramp up.