TSA Shutting Down After Almost Three Decades
- Business & Finance
The Transpacific Stabilization Agreement (TSA), which has been a strong voice of the ocean carriers in the U.S. transpacific trade, will close its doors on February 8, 2018, after almost 30 years.
TSA’s executive administrator Brian Conrad said that the decision was made due to the significant changes in the commercial and operational environment in the transpacific trade, and ocean transportation worldwide that took place over the past few years and that continue into 2018 and beyond.
“During these challenging times in shipping, it became apparent that the TSA’s original mission was no longer viable, but I believe that TSA has performed an important role over the years in supporting the development of U.S. international trade,” he added.
The decision is being announced on the back of Maersk Line’s withdrawal from the agreement reported by World Maritime News in December.
Maersk Line said the decision to pull out from TSA was part of its commitments to regulatory authorities made in the context of the acquisition of Hamburg Süd. The Danish liner added that it was withdrawing from its current memberships in other Voluntary Discussion Agreements (VDAs).
Established in 1989, TSA was among the first carrier discussion agreements formed after passage of the 1984 Shipping Act in the U.S. In addition to TSA’s commercial initiatives, the Agreement has provided a forum for the lines to discuss trade conditions, market developments, and business and economic trends.
TSA members included:
- APL Ltd. Kawasaki Kisen Kaisha, Ltd. (K Line)
- China Shipping Container Lines Maersk Line
- CMA-CGM Mediterranean Shipping Co.
- COSCO Container Lines, Ltd. Nippon Yusen Kaisha (N.Y.K. Line)
- Evergreen Line Orient Overseas Container Line, Ltd.
- Hanjin Shipping Co., Ltd. Yangming Marine Transport Corp.
- Hapag-Lloyd AG Zim Integrated Shipping Services
- Hyundai Merchant Marine Co., Ltd.