Drewry’s Hong Kong-Los Angeles Container Rate Benchmark fell to $1,900 this week, the first drop below the $2,000 per-40-foot-container mark since early March 2012.
The rate for the week of May 15 decreased 6.5 percent or $132 from last week, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. Rates have been steadily declining after a general rate increase on April 1. During this slump, prices have fallen 24 percent or $600 in total. The current price is down 18.7 percent year-over-year and 14.2 percent or $313 below the rate at the beginning of 2013.
The Shanghai Containerized Freight Index's Asia-West Coast rates hit their lowest level since March 2012 last week, also below $2,000 per FEU. The week ending May 10 saw trans-Pacific West Coast-bound rates fall 3.4 percent or $70 to $1,997 per FEU.
U.S. Lines proposed a $400-per-FEU increase on Asia to U.S. West Coast lanes effective May 21.