Spot container rates from Asia to the U.S. East and West coasts measured by the Shanghai Containerized Freight Index increased in the week ending Jan. 10, the second straight week of climbing rates ahead of an early Chinese New Year.
Since the first round of the 2-stage rate general rate increase proposed by the Transpacific Stabilization Agreement on Dec 20, rates in Asia-U.S. lanes have extended their growth. Similar to previous GRIs, they decreased in the week following the GRI, but these declines were minimal and the rates rose further in the two weeks after. The TSA plans to launch the second stage of this increase on Jan. 15. Carriers including MOL, Cosco and U.S. Lines are adopting the proposed increase of $300 per FEU in the Asia-to-U.S. trade lanes.
The spot rate from Shanghai to the U.S. West Coast rose 2.8 percent, or $51 from last week to $1,866 per FEU, according to SCFI data issued by the Shanghai Shipping Exchange. The rate slipped $11 in the week following the mid-December GRI, but has since increased a total of $63 in the past two weeks. The spot rate in the week ending Jan. 10 is 20.3 percent below the level in the same week last year, when the rate stood at $2,341.
The spot rate to the U.S. East Coast climbed 2.6 percent, or $80 per FEU, to $3,217 in the week ending Jan. 10, which currently puts it $55 above the proposed $200 increase. The rate had inched down $10 post-GRI but has gained $110 over the past two weeks. Despite the increase, the current rate remains down 8.7 percent year-over-year, from $3,525 one year ago.
Drewry’s benchmark rate for shipping from Hong Kong to Los Angeles remained unchanged in the week of Jan. 8. It remained at $1,886 for the third consecutive week.