Drewry’s Hong Kong-to-Los Angeles Container Rate Benchmark fell to $2,232 per 40-foot container this week, down 7.2 percent from the same week in 2012. This is the first year-over-year loss since the JOC began collecting this data in October 2011.
The benchmark rate for the week of April 17 fell 6.4 percent or $152 from the week before, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. This is the second straight weekly decline. In the past two weeks, the rate fell 10.7 percent or $268. The current rate is now up only 0.8 percent or $19 from the beginning of 2013.
Currently, only 14 percent of the initially proposed $400-per-FEU general rate increase set for April 1 to the U.S. West Coast remains, a major decline from 81 percent achievement two weeks ago. As predicted, the market has been unable to sustain such increases, following similar declines in the Hong Kong-U.S. West Coast trade lane after a Jan. 15 GRI and in the Asia-Europe trade after a March 15 GRI.
Despite the recent inability for carriers to hold onto rate increases, Cosco and MOL plan to increase rates on May 1 for all cargo moving from the Far East to the U.S. West Coast by $800 per 40-foot container.