The average spot freight rate in the eastbound trans-Pacific trade fell $100 per 40-foot-equivalent unit this week, giving up much of the $250 per FEU gain seen last week.
The Drewry benchmark rate for shipping from Hong Kong to Los Angeles dropped to $1986 for the week of Sept. 11, slipping 4.8 percent from Sept. 4’s rate of $2,086 per FEU. The drop followed the recent pattern of steep declines after general rate increases in this lane. The current level reflects the attainment of just 37.5 percent of the $400 per FEU GRI recommended by the Transpacific Stabilization Agreement for Sept. 1.
Drewry said in this week’s release that it “expect[s] further rate erosion in the coming weeks unless carriers exercise capacity control on the trans-Pacific trade.” Cosco has already announced a general rate increase of $400 per FEU on USA-bound lanes for October 15.
The September 11 rate is 20.5 percent below where it was a year ago, when it stood at $2,496 per FEU, and 10.3 percent, or $228 per FEU, below the rate of $2,213 per FEU at the beginning of 2013.