Container shipping lines in the Asia-U.S. trade lane face significant cost and operational challenges in 2015-16 as they manage inland rail and truck capacity shortages, and sharply higher mandated fuel costs beginning in 2015. These concerns are reflected in a new approach for the Transpacific Stabilization Agreement (TSA), as the carrier discussion group prepares for a new round of service contract negotiations. Among the changes adopted by TSA’s 15 member lines: Contract rate objectives for 2015-16 rather than scheduled general rate increases (GRIs) from varying baseline levels; rates for 20-foot and high-cube 40-foot containers that more fully reflect cost impacts in loading and handling; full recovery of rising intermodal costs due to inland transport capacity and congestion issues; a revised bunker surcharge formula more accurately reflecting current vessel size and fuel consumption; and recovery of low-sulfur fuel costs as tighter emissions standards take effect in January 2015 for vessels operating in North American coastal waters. On rates, TSA is recommending that its members seek to conclude 2015-16 contract rates, at levels at or above $2,000 per 40ft to the West Coast and $3,500 to the East Coast from all North Asia ports.  For Southeast Asia, the objective will be to achieve rates at or above $2,150 to the West Coast and $3,650 to the East Coast.  Intermodal base rates will vary by destination, but as an example TSA is proposing 2015 CY rates to Chicago-area ramps to be at least $3,900 from North Asia and $4,050 for Southeast Asia. Member lines have additionally modified TSA’s formula for other equipment sizes with respect to minimum rates. Base rates for 20-foot containers (TEU) will be assessed at 90% of FEU rates. High-cube FEU base rates, will be charged a premium of at least $50 over the 40ft standard rate for West Coast and $100 over the 40ft rate for all other destinations. The changes reflect the greater cost