Average spot rates in the eastbound trans-Pacific trade slumped 8.6 percent this week, the second weekly decline since carriers were able to lift rates to a record high after implementing the general rate increase recommended by the Transpacific Stabilization Agreement during the first two weeks of August.
The Drewry Hong Kong-Los Angeles container spot rate benchmark fell to $2,496 per 40-foot-equivalent container unit, down $234 per FEU from last week’s $2,730 per FEU, when the rate remained unchanged from the week before.
The Drewry benchmark has declined by $384 per FEU from the record high it reached in the second week of August as weak demand and continuing overcapacity have made it difficult for carriers to sustain all five GRIs implemented since the first of the year.
Despite the drop, this week’s benchmark still held on to $116 of the $500 per FEU general rate increase recommended by the TSA. But the benchmark rate has fallen $204 per FEU below the $2,700 per-FEU level it reached on June 10, when carriers implemented a peak-season surcharge of $450 per FEU.
The Drewry benchmark spot rate is now 34.4 percent higher than the same week last year, when it averaged $1,857 per FEU. It has climbed 73.8 percent in the 33 weeks since the end of last year, when it averaged $1,436 per FEU.