Spot freight rates for ocean container shipping on the trans-Pacific fell another 4.2 percent in the latest week, the second straight week-to-week drop in a abrupt halt to carrier attempts to pump up weak pricing.
The Drewry Container Rate Benchmark rate container shipments from Hong Kong to Los Angeles fell $64 from the week before to $1,457 per 40-foot equivalent container.
That left the rate measure down about $400, or 21.2 percent, since late August and 29.9 percent below the same week a year ago.
Spot freight rates on the trans-Pacific and Asia-Europe trade lanes have been sliding for more than a year. That's because of the huge amount of big new ships that carriers have deployed on the Asia-Europe trade lanes and the resulting cascading of smaller, less-efficient vessels onto the trans-Pacific and other trade lanes.
Trans-Pacific rates have not fallen as far as those on the Asia-Europe trade because some carriers have already suspended services for the slack winter season, and some smaller carriers have pulled out of the Pacific altogether, or in a few cases gone out of business.
The Trans-Pacific Stabilization Agreement among 15 carriers on the eastbound trans-Pacific will try to implement an interim rate increase of $400 per FEU on Jan. 1 after the holiday season ends.