The average spot freight rate in the eastbound trans-Pacific trade lost another $50 per 40-foot-equivalent unit this week, the sixth straight week without an increase. Rates have fallen $350 during this slump.
“Slowing demand and excess capacity weighed on rates this week. Drewry expects pricing to decline further in advance of the 15 November GRI,” Drewry said in this week’s release. Cosco and CMA CGM planned general rate increases of $400 per FEU on U.S.-bound lanes for October 15 which were unsuccessful. The Transpacific Stabilization Agreement suggested an increase of the same amount, set for Nov. 15. Carriers such as OOCL and U.S. Lines have already announced similar increases.
The Drewry benchmark rate for shipping from Hong Kong to Los Angeles fell to $1,736 for the week of Oct. 16, slipping 2.8 percent from $1,786 per FEU in the week of Oct. 9. The current rate now sits at its lowest level since Dec. 28, 2011. It is 34.5 percent below where it was a year ago, when it stood at $2,649 per FEU, and 21.6 percent, or $478 per FEU, below the rate of $2,213 per FEU at the beginning of 2013.