Drewry’s Hong Kong-Los Angeles Container Rate Benchmark fell over 4 percent this week, reflecting a failure to achieve yet another general rate increase. On May 1, trans-Pacific carriers Cosco, U.S. Lines and MOL planned to increase rates by $800 per 40-foot container for all cargo moving from the Far East to the U.S. West Coast.
The benchmark rate for the week of May 8 dropped 4.2 percent or $89 to $2,032 per 40-foot container, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. Rates have been steadily declining in this lane since April 10, aside from last week when they remained flat. During this slump, prices have fallen 18.7 percent or $468. The current price is down 13 percent year-over-year and 8.2 percent or $181 below the rate at the beginning of 2013.
Asia-West Coast rates also continued to slip last week, according to the Shanghai Containerized Freight Index. The week ending May 3 saw trans-Pacific West Coast-bound rates fall 1.7 percent or $35 to $2,067 per FEU.