Container line forum TSA to close

Transpacific Stabilization Agreement (TSA) is to close next month, after Maersk Line announced its resignation, a move that set the market share of the TSA on the transpacific to fall to around 65% from 80%.

TSA was established in 1989, changed a rigid rate conference system from a heavily regulated common carrier system of fragmented trade lanes to a vertically integrated commercial system offering customized, value-added logistics services. Executive Administrator Brian Conrad commented that TSA has been helping to grow carriers over the long-term, offering shippers the broadest, most reliable choice of service options.

As Lloyd’s Loading List reported last December, the inability of lines to exercise supply-side discipline was a feature of the transpacific market. For example, TSA carriers had made up to 18 attempts to impose GRIs ranging from USD400 to USD1,000 per FEU but none found traction.

(Lloyd’s Loading List)