In order to provide our customers with the most current information available, the Phoenix News Summary is emailing industry news updates. Our summaries can also be read via our web site, www.phoenixintl.com, on the Industry News page.

TSA proposes '06 rate hikes – JOC - Shipping lines that carry U.S. imports from Asia have proposed rate increases of $150 per 40-foot container to West Coast ports, $350 for intermodal rail shipments to destinations in the eastern half of the country and $400 on all-water services to the East Coast. The proposed 2006 rate increases include a $400 peak-season surcharge to run from June 15 to Nov. 30. The TSA has no enforcement powers, so its members are free to negotiate their own rates in confidential contracts with importers. Inland transportation costs will increase at least 25 percent next year as railroads add locomotives and truckers upgrade their vehicles. The TSA expects an 11 percent increase in equipment-repositioning costs in the Pacific, where import volumes are more than twice the level of exports to Asia. Also, ports and railroads the past year reduced the amount of free time they allow for storage of containers at their facilities. Carriers in recent years have invested heavily in large new vessels ranging in size to 10,000 TEUs and costing more than $100 million each. The lines are beginning to pay off the large debt they incurred. The 2006 rate increases are also similar to last year's in that carriers will attempt to raise their rates faster on all-water services to the East Coast, which have been oversubscribed, than to traditional West Coast gateways, where there has been abundant vessel capacity. However, industry analysts project that capacity in the trans-Pacific next year will increase 14 percent, while cargo volume is likely to increase only 8 to 9 percent. This will make it more difficult for carriers to implement the proposed rate increases.

TACA confirms first 2006 tariff hikes – JOC - The Trans-Atlantic Conference Agreement said that as of Jan. 1, the tariff rate increases for dry van and temperature-controlled cargo would be $160 per 20-foot container and $200 per 40- or 45-foot container. It said it plans to stick with the tariff increases starting April 1, which were $240 per 20-foot container and $300 per 40- or 45-footer. Most trans-Atlantic shipments move under negotiated contracts, but TACA tariffs often are used as the starting point for those negotiations.

Third cut for Lufthansa fuel charge – JOC - Lufthansa Cargo said it will cut its fuel surcharges for the third time in as many weeks to 45 eurocents per kilogram from 50 eurocents, effective Dec. 5.

Phoenix to Establish ACE Secure Data Portal with Customs – Phoenix International will develop a secure data portal in early 2006, enabling qualified US importers to benefit from extended duty payment terms. Once the portal is in place, qualified importers using Phoenix can make periodic monthly statement payments on the 15 th working day for prior month duties; thereby extending the actual date they pay Customs up to 15-45 days later than what it is now. The potential to combine nationwide duty statements into one payment is another benefit of the program. For further information, please contact your local Phoenix representative.

Our summary articles are compiled from a number of public sources that, to the best of Phoenix’s knowledge, are true and correct. In the event any information provided is erroneous, Phoenix International Freight Services, Ltd. accepts no liability or responsibility.