Drewry’s Hong Kong-to-Los Angeles Container Rate Benchmark slid 4.7 percent or $116, the week after the April 1 general rate increase took effect.
The Transpacific Stabilization Agreement and some of its member carriers, including OOCL, MSC and CMA CGM, announced hikes of $400 per 40-foot container to the West Coast and $600 per FEU to all other destinations. They achieved just over 80 percent of the proposed GRI to the West Coast in the first week. However, during the second week they lost 36 percent of this increase, moving them down to only a 52 percent GRI achievement level.
The benchmark rate fell to $2,384 per FEU in the week of April 10, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. The current rate is up 18.9 percent from the same week in 2012 and up 7.7 percent or $170 from the beginning of 2013.
As expected, the market was unable to sustain such increases at this time, following similar declines in this lane after a Jan. 15 GRI and in the Asia-Europe lane following a March 15 GRI.