Drewry’s Hong Kong-Los Angeles Container Rate Benchmark eroded in the week of July 10, giving up half of the $400 gain it achieved from the July 1 general rate increase, according to the latest release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. Last week the benchmark had fully achieved the $400 per 40-foot container GRI recommended by the Transpacific Stabilization Agreement for July 1.
“Drewry anticipates further rate erosion over the coming weeks until August 1, when pricing is expected to rise in response to the peak-season surcharge,” Drewry added in its release. The TSA has called for an Aug. 1 peak-season surcharge of $400, and Hapag-Lloyd and U.S. Lines have already complied by announcing matching increases. “Positive signals on consumer confidence for second-half 2013, and healthy consumer spending data in the second quarter, suggest a likely bump for Asian imports in coming months, and container shipping lines in the Transpacific Stabilization Agreement (TSA) are preparing for a potentially healthy peak season,” said Niels Erich, spokesman for TSA, in announcing the surcharge.
The trans-Pacific spot rate fell 9 percent from last week to $2,036 per FEU. This was the steepest decline in five weeks. The rate is down 16.7 percent year-over-year, and down 8 percent or $177 from the beginning of 2013.
The Asia-U.S. West Coast Shanghai Containerized Freight Index inched up further last week in response to the July 1 GRI. In the week ending July 5, the trans-Pacific West Coast-bound rate not only held onto the gain of $269 or 67 percent of the GRI from the week before, but it rose by another 0.8 percent or $17 to $2,131.