The Drewry benchmark rate for shipping from Hong Kong to Los Angeles climbed $100 from last week to $1,986 per 40-foot container in the week of March 19, on the heels of a March 15 general rate increase. Carriers in the Transpacific Stabilization Agreement planned to increase Asia-U.S. rates by $300 per FEU, thus this week’s increase only managed to achieve 33.3 percent of what was proposed.
The current Hong Kong-to-Los Angeles rate today was down 10.4 percent or $231 year-over-year, but up 5.3 percent from the rate on Jan. 1 of this year.
Drewry said in this week’s release that it expects pricing to remain under pressure until the TSA members attempt to lift rates again by an undisclosed amount on May 1.
In the week of March 14, a day before the effective date of the GRI, the spot rate as indexed by the Shanghai Containerized Freight Index to the U.S. West Coast was $1,931 per FEU, climbing 8.2 percent or $147 from the prior week.
“It is possible we may see further increases reported next week, although in the past, most changes have been reflected in the spot rate just before the implementation date,” SeaIntel said in this week’s Sunday Spotlight report.