Drewry’s Hong Kong-to-Los Angeles Container Rate Benchmark continued to decline in the week ending March 27, dropping it to its lowest level in 2013 so far.
The benchmark rate fell to $2,177 per 40-foot container according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. The current rate is down 1.8 percent or $40 from last week. This is the fifth consecutive weekly decline; prices have dropped over 14 percent or $359 during this slump. The rate is now almost 2 percent or $37 lower than it was at the beginning of 2013, before the most recent general rate increase in this lane, which went into effect on January 15. Despite the continuing decline, this week’s rate is still 8.5 percent or $171.43 higher than it was during the same week last year.
Asia-West Coast rates extended their decline as well last week, according to the Shanghai Containerized Freight Index. The week ending March 22 saw trans-Pacific eastbound rates inch down a little less than 1 percent or $18 per FEU, for the eighth straight weekly spot rate drop. Rates dropped 16.5 percent or $416 between Shanghai and the U.S. West Coast during those eight weeks.
Carriers will try again to boost rates on April 1, when members of the Transpacific Stabilization Agreement plans, including OOCL, MSC, and CMA CGM, have announced that they will impose an increase of $400 per FEU to the U.S. West Coast.