Trans-Pacific Rates Rise First Time in Two Months

Posted on November 3, 2011 by Editor
Drewry_Shipping_ConsultantsTrans-Pacific spot rates rebounded this week off their 22-month low of last week, rising for the first time in two months, as measured by Drewry Shipping Consultants weekly benchmark.
The Drewry benchmark rate for container shipments from Hong Kong to Los Angeles increased by 4.3 percent this week to $1,543 per FEU this week from $1,478 per 40-foot equivalent unit last week.
Container lines that have been taking delivery of a glut of new containerships this year have been slashing freight rates in their attempts to gain market share on the major East-West trade lanes. The lowered rates come even as demand for the new capacity remains flat.
On the Asia-Europe trade lane, where spot rates play a much larger role than on the trans-Pacific, the index of spot rates for loaded containers landed at ports in North Europe fell to $677 per 20-foot equivalent unit in the week ended Oct. 21. That’s down 2.9 percent from the week before and $870 or 56.2 percent less than a year ago.
Since late August, the Drewry trans-Pacific benchmark has plummeted 16.9 percent. It is 27.2 percent below this year’s $2,119 peak in early January and 29.2 percent below its level of a year ago.
The Drewry container benchmark gauges rates paid by shippers to non-vessel-operating common carriers, excluding terminal handling charges in Hong Kong.
Source: Journal of Commerce
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