US to Asia Trade Lane: WTSA Implements New BAF Formula

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member lines serve the US export trades from the USA to East Asia , announced reductions to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC) for the month of November. The WTSA also rolled out a new BAF formula. Under the new formula, BAF will be calculated and charged separately for the US Pacific (West) Coast and Atlantic (East) Coast. WTSA member lines have filed tariff rules implementing the new formula for dry cargo. Some service contracts are still subject to the old formula BAF. Similar new guidelines for refrigerated cargo will be announced soon. WTSA's new BAF formula uses a straight average of Hong Kong and Los Angeles bunker prices for the West Coast BAF; and Hong Kong and New York bunker prices for the East Coast BAF.

BAF for November under the old formula will be USS 976 per 20fi ctr, USS 1220 per 4Oft/45ft ctr and US$ 58 per WM.

November BAY calculated using the new formula for dry container cargo is as follows: from/via US Atlantic/Gulf Coast Ports - US$ 1074 per 20fi ctr and US$ 1343 per 40f1145ft etr; from/via US Pacific Coast Ports - US$ 543 per 20ft ctr and US$ 679 per 4Oft/45ft ctr. Refrigerated container shipments from/via all US Ports will be subject to November BAY of USS 976 per 2Oft ctr, US$ 1220 per 40ff ctr. Inland Fuel Charges (EEC) for November will be reduced to US$ 375 per container for rail and intermodal railltruck shipments, and USS 108 per container for local/regional truck shipments.

WTSA's 10 member carriers are American President Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, NYK Line, OOCL, and Yang Ming Marine.