Maersk Line To Rejoin TSA Shipping Agreement

USA / ASIA - Maersk Line has announced that it has decided to apply for membership in the Trans-Pacific Stabilization Agreement (TSA) after a five year absence. With Maersk Line’s acceptance, there will be 15 members of this research and discussion forum made up of ocean shipping lines that carry cargo between Asia and the U.S.

“Five years ago, the market conditions were vastly different than they are today,” said Lars Mikael Jensen, Vice President Pacific Trade at Maersk Line.

“Maersk Line is convinced that restoring profitability long-term is needed in the marketplace and has demonstrated market leadership in this regard. It is imperative that service levels involving vessel capacity and string frequency across the Pacific do not suffer as a result of continued rate deterioration,” he continued.

“The purpose of Maersk Line's participation in the TSA is to develop a platform that allows customers and carriers to find stability for years to come, avoiding the gross fluctuations of 2009. This business must be managed for long-term health and a return to profitable and sustainable operations.”

Maersk left the TSA in 2004 with a spokesman then saying that: “We think we will be able to respond to our customers' needs faster by being outside.”

The heavy losses suffered in recent years caused by decreased volumes, fuel price volatility and excess capacity have heavily impacted upon all the worlds shipping lines. Maersk Line’s action is recognition that unified action and cooperative policy for the industry is necessary until the volatility in the market subsides and operations can return to something approaching normality.

http://www.maerskline.com/