THE Transpacific Stabilisation Agreement members have agreed to raise rates on dry cargo US$400 per FEU to the US west coast and US$600 per FEU for all other destinations from December 1.

"To establish a more compensatory rate baseline for contracts that will be in effect through mid-2014, member carriers in the Transpacific Stabilisation Agreement (TSA) are recommending a dry cargo general rate increase," said the TSA statement.

The TSA first pointed to recent flat or declining revenue growth in some commodity categories as winter season demand weakens and existing contracts expire, making revenue improvement critical, it said in a statement.

"Even though contracts run 12 months or more, rates ebb and flow throughout the year depending on contract timing and structure, as well as cargo seasonality," said TSA executive administrator Brian Conrad.

"This is especially true in the fourth quarter, as peak season traffic begins to ease, and more so this year as US holiday retail shipments were moved forward amid labour uncertainty. Lines want to be sure that revenue gains made earlier in the year are not prematurely eroded in upcoming contracts," Mr Conrad said.

Reefer rates will also rise $1,500 per standard and high-cube FEU on cargo from Asia - including Pakistan, Bangladesh and Sri Lanka - to all US destinations.

"The revenue situation for refrigerated cargo is so dire at this point that some lines are increasingly scaling back participation in the market because moving rates are below cost," Mr Conrad said.

"This increase follows years of gradual rate deterioration; the message to the trade is that rates are unsustainable and will not support the purchase, lease, operation and maintenance of very sophisticated and costly equipment," he said.

TSA members include APL, "K" Line, China Shipping Container Lines, Maersk, CMA-CGM, MSC, Cosco, NYK, Evergreen, OOCL, Hanjin, Yangming, Hapag-Lloyd, Zim and Hyundai Merchant Marine Co.