Drewry’s Hong Kong-Los Angeles Container Rate Benchmark fell $193 this week, effectively losing 77 percent of the $250 increase from the May 21 GRI. Rates in this lane had achieved 62.5 percent of the proposed $400 per-40-foot-container GRI by USL and CMA CGM, but this drop puts overall achievement of the $400 GRI down to 14 percent.
The rate for the week of June 5 was down 9 percent from last week to $1,957, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. This is the largest week-to-week drop seen in this lane since the JOC began collecting this data in October 2011. The current price is down 13 percent year-over-year and 11.6 percent or $256 below the rate at the beginning of 2013.
The Shanghai Containerized Freight Index showed similar declines in Asia-West Coast spot rates last week. The week ending May 31 saw trans-Pacific West Coast-bound rates fall more than 4 percent, or $85, to $2,008 per FEU, pulling achievement of the GRI down to less than 3 percent.
The next round of GRIs in this lane has already been announced. The Transpacific Stabilization Agreement is recommending a GRI of $400 per FEU from Asia to the U.S. West Coast for July 1. Hapag Lloyd, OOCL and Cosco have already set a $400 GRI for July 1.