Drewry Pacific Rate Index Jumps 18.9 Percent

The Drewry trans-Pacific Container Rate Benchmark jumped 18.9 percent in the past week to the highest level ever in the five-year history of the trans-Pacific spot pricing index.

The rate of $2,607 per 40-foot equivalent container unit for shipments from Hong Kong to Los Angeles for the week ended June 14 was sharply higher than the $2,193-per-FEU mark the week before. It also was 182.9 percent higher than the rate of $921 the same week a year ago, when spot rates were on the way down to historic lows. 

Container Rate Benchmark: By The Numbers.

The apparent jump in spot pricing comes as demand on trans-Pacific lanes remains strong even as space on vessels remains tight and companies report shortages of containers to ship goods out of Asia.

The sharp increase in the spot rate was sparked by the peak season surcharges that several members of the Transpacific Stabilization Agreement implemented as of June 15, the date of the latest Drewry container rate benchmark, said Philip Damas division director of Drewry Supply Chain Advisors in London.

"In addition, eastbound trans-Pacific ship capacity is very tight and there is a premium for any available space on the ships,” Damas said. “A new factor behind the rate increases is the shortage of boxes, which is becoming an issue in China as well as in the U.S.”

The increase in ocean rates come as air freight prices out of Asia also are soaring. The average rates out of Shanghai jumped by about 18.4 percent in April from March to their highest point so far in 2010, according to Drewry Shipping Consultants.

-- Contact Peter T. Leach at pleach@joc.com.