Average eastbound spot rates on the trans-Pacific soared $200 per 40-foot-equivalent unit this week, one day ahead of a planned August 1 rate increase. This indicates carriers have achieved approximately half of the peak-season surcharge of $400 per FEU proposed by the Transpacific Stabilization Agreement.
The Drewry Hong Kong-Los Angeles container freight rate benchmark jumped 10.3 percent in the week of July 31 from the week before to average $2,136 per FEU. In the immediate aftermath of the July 1 general rate increase, spot rates rose by the full $400 per FEU carriers had sought to obtain, but in the following three weeks rates gave up most of that increase.
“Drewry expects this gain to erode over the coming weeks as demand is still not strong enough to absorb the excess capacity on the trans-Pacific trades,” Drewry said in its release.
This week’s benchmark is 13 percent below the rate in the same week last year, when it was $2,452 per FEU, and 3.5 percent or $77 down from the $2,213 per FEU level at the beginning of this year.