The Drewry benchmark rate for shipping from Hong Kong to Los Angeles rose this week after three weeks without change.
The rate climbed 10.6 percent or $200 per 40-foot container in the week of Jan. 15, reaching $2,086 per FEU, the highest level since early September 2013. This increase comes as a result of the second of a two-stage rate increase planned by the members of the Transpacific Stabilization Agreement for Jan. 15. However, the rise fell short of the proposed increase, which was set for $300 per FEU in the Asia-to-U.S. trade lane. Carriers including MOL, Cosco, Evergreen and U.S. Lines announced that they would adopt this increase.
Drewry expects pricing to remain firm in the weeks leading up to the Chinese New Year but decline subsequently as Asian export volumes slow on account of factory closures in China, Drewry said in this week’s release. Despite the increase, the current rate is still down 17.4 percent year-over-year only two weeks before Chinese New Year, which comes earlier than it did in 2013.