LONDON's Drewry Maritime Research says capacity cuts in the second quarter has meant that "eastbound ships were full in July and August, and will be even fuller between now and at least mid-October as a result of Hanjin's collapse" on Asia-west coast North America (WCNA) services.
Drewry convinced Hanjin debacle means end to rock bottom rates LONDON's Drewry Maritime Research says capacity cuts in the second quarter has meant that "eastbound ships were full in July and August, and will be even fuller between now and at least mid-October as a result of Hanjin's collapse" on Asia-west coast North America (WCNA) services. With better ship utilisation, prices were raised after July 1 and in the ensuing two months the average going rate rose to US$1,250, Drewry noted in its Container Insight Weekly. "Further hikes were planned for 1 September and, propelled by the Hanjin situation, spot rates climbed to $1,600-1,700," Drewry reported. "Some members of the Transpacific Stabilisation Agreement have indicated a second increase will apply from September 15, which could see rates rising to levels not seen since February 2015," said the report. The US Federal Maritime Commission (FMC) said it "would not tolerate any exploitation of the Hanjin bankruptcy, or any improper behaviour that could constitute a violation of the Shipping Act", but Drewry said the transpacific situation had led to significantly higher prices within the long-term agreements covering 2017 between container lines and beneficial cargo owners (BCOs). "If ever proof were needed that current USWC BCO contract rates of $800 per 40-foot are totally unsustainable then one need look no further than at Hanjin's dramatic downfall," Drewry said. "BCO rates must surely rise next year.
