Transpacific rates fall to US$1,486 per FEU, lowest in 21 months
Wednesday, 19.Oct.2011, 23:20 (GMT+3)
SPOT rates from Hong Kong to Los Angeles dropped to US$1,486 per FEU
based on Drewry Shipping Consultants' weekly benchmark, hitting the
lowest point in 21 months and showing a 35.4 per cent decline year on
Compared to the highest rates of US$2,119 in early January, the
transpacific rates have slumped 29.9 per cent so far, reported Newark's
Journal of Commerce, adding that the spot index has fallen 20 per cent
since August 2010.
Facing shrinking demand and freight rates, carriers have started to
curtail services and to idle part of their fleet in the
weaker-than-expected winter season.
Though many shippers have signed annual contracts with ocean shipping
lines for transpacific trade, more of them have turned to non-vessel
operating common carriers (NVOs), shipment forwarders that do not own
any vessels but function as carriers, raising the importance of market
spot rates as a vital reference since early last year.