Drewry Trans-Pacific Benchmark Rate Shows Third Consecutive Week of Decline

Drewry Trans-Pacific Benchmark Rate Shows Third Consecutive Week of Decline

Trans-Pacific eastbound spot container rates fell 1.6 percent in the week ending March 13, the third consecutive week of declines.

Drewry’s Hong Kong - Los Angeles Container Rate Benchmark
Rate per 40-Foot Container and Week-to-Week Percent Change
Source: Drewry

Drewry Container Rate Benchmark - spot rates through March 13, 2013. Source: Drewry's Container Freight Rate Insight.

For a larger version of the chart, click on the image.

Spot eastbound trans-Pacific rates from Hong Kong to Los Angeles dropped to $2,260 per 40-foot container, down $36 from last week, according to the Wednesday release of the Drewry Hong Kong-Los Angeles Container Rate Benchmark. This price is still 12.3 percent or $247 higher than it was for the same week of 2012 and 2.1 percent or $46 above its level at the beginning of 2013. The pace of the decline is decelerating, but nonetheless the rate has fallen 10.9 percent or $276 per FEU during this three-week slump.

Asia-West Coast rates continue to show an overall decline. The week ending March 8 saw the sixth straight weekly spot rate drop, and the steepest weekly percentage drop this year at 4.3 percent, according to the Shanghai Containerized Freight Index. Rates dropped 13.1 percent or $331 between Shanghai and the U.S. West Coast during those six weeks.

Carriers will try again to boost rates on April 1, when members of the Transpacific Stabilization Agreement plans to impose an increase of $400 per FEU to the U.S. West Coast.

Complete coverage of trans-Pacific maritime trade.