With another week left before carriers in the trans-Pacific lanes attempt a general rate increase of $600 per 40-foot container, spot rates from Asia to the U.S. West Coast dropped once again.
The Drewry benchmark spot rate from Hong Kong to Los Angeles dropped $100 this week to $1,800 per FEU, eroding all of the mid-July gain for carriers. Drewry said it expects the spot rate to stay on a downward track until the August GRI, continuing a year of peaks and valleys tied mostly to monthly rate increases.
Rates on the Shanghai Containerized Freight Index dropped as well, sinking 2.2 percent to $1,783 per 40-foot container from Shanghai to the U.S. West Coast. The rate is nearly 10 percent lower year-over-year.
The Drewry spot rate was 5.3 percent lower than the week before, and also was down 7 percent year over year. Drewry’s spot rate hasn’t topped $2,000 per FEU since February. August’s planned GRI is the largest rate increase suggested by Transpacific Stabilization Agreement carriers so far this year. The 15 carrier members have not fully realized a GRI in the trans-Pacific lane this year.
In the eight weeks since the beginning of June, the spot rate has dropped four times. There have been two weeks that showed no movement, and just two weeks with pricing gains for carriers. Still, rates are up slightly over the period; the benchmark rate was $1,750 on June 4.