Drewry’s Hong Kong-Los Angeles Container Rate Benchmark remained flat, managing to hold on to 62.5 percent of the May 21 general rate increase by USL and CMA CGM. Last week, rates went up by $250, achieving part of the proposed $400 per-40-foot-container GRI.
The rate for the week of May 29 stayed at $2,150, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. Prior to the past two weeks, rates had declined a total of 24 percent or $600 during a six-week slump. Because of this decline, the current price is still down 8 percent year-over-year and 2.9 percent or $63 below the rate at the beginning of 2013.
Asia-West Coast spot rates strengthened last week according to the Shanghai Containerized Freight Index. The week ending May 24 saw trans-Pacific West Coast-bound rates jump 4 percent or $81 to $2,093 per FEU, achieving 24 percent of the GRI over two weeks.
The Transpacific Stabilization Agreement is recommending a GRI of $400 per FEU from Asia to the U.S. West Coast for July 1 “to pursue further revenue improvement that is essential if [carriers] are to achieve financial viability and maintain service levels customers expect in the service-intensive Asia-U.S. market.” Brian Conrad, executive administrator of the TSA, said that freight rates are not staying level with rising costs. Hapag Lloyd and Cosco have already set a $400 GRI for July 1.