Shipping Costs of Refrigerated Containers Expected to Rise

Rates to ship refrigerated containers, mainly for cargo like fresh produce and other commodities, to Asia are rising. Effective January 1, 2012, ten member carriers in the Westbound Transpacific Stabilization Agreement are raising their prices by $300 per 40-foot container.

These member shipping lines include: COSCO Container Lines, Hyundai Merchant Marine, Hanjin Shipping Co., Evergreen Line, and more.

Although shipping costs tend to vary by year and commodity, this new increase is basically across the board. The goal is to compensate the cost of sending containers back to the U.S. either empty or with discounted cargo, according to WTSA officials. If refrigeration is not turned on, return cargo moves at a lower cost.

Reports are stating that as $300 may not have a huge impact on grower-shippers, this rise is a part of overall rising freight or fuel rates in the future. It could also hurt the value of fresh produce. Most growers have already been experiencing rising shipping costs as the year comes to an end. However, the export still remains a strong market due to the fact that recent rate fluctuations have been benefitting exporters.