Drewry’s Hong Kong-Los Angeles Container Rate Benchmark remained unchanged in the week of June 12, following major losses in the previous week that dropped overall achievement of the May 21 GRI to 14 percent or $57. The current spot rate held at $1,957 per 40-foot container for a second week, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark.
Rates saw no movement “as stronger demand supported rate stability, ahead of peak season. However, Drewry expects pricing to remain under pressure as demand is still not strong enough to absorb all the capacity on the trade,” Drewry explained in its latest release.
This week’s rate is down 27.5 percent year-over-year and 11.6 percent or $256 below the rate at the beginning of 2013.
The Shanghai Containerized Freight Index saw continued slides in Asia-West Coast spot rates last week. The week ending June 7 saw trans-Pacific West Coast-bound rates drop 3 percent, or $59, to $1,949 per FEU, the second consecutive weekly decline that put the index at its lowest rate since early March 2012.
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. Cosco also announced a $400 peak season surcharge on 40-foot containers from Asia to North America, effective July 15.