Transpac rates hit five-year high, up 182pc over 12 months

LONDON's shipping consultancy Drewry's reports that spot rates for transpacific container shipping have increased 182.9 per cent - hitting a five year high - over the last 12 months.

Specifically, the Hong Kong-Los Angeles container spot rate stood at US$2,607 per FEU last week, up 18.9 per cent over the week before, representing an 182.9 per cent year-on-year increase.

"It is a mini container shipping boom, ahead of the full recovery of the real economy," said Philip Damas, editor of the Drewry Container Freight Rate Insight report, adding that the big percentile difference also reflected 2009's very poor performance.

"The rebound in spot container freight rates has been phenomenal, as rates now substantially exceed pre-crisis levels of about $2,000 per 40-foot box," he said.

"A new factor behind the rate increases is the shortage of boxes, which is becoming an issue in China as well as in the US," he said.

The jumped-up rates also reflect new peak season surcharges tight eastbound transpacific ship capacity and a shortage of containers, which Maersk says has become a "global challenge".

"Whether you look at Hong Kong to Los Angeles, Shanghai to LA, Shanghai to New York or Shanghai to Chicago, all our weekly container rate benchmarks from port to port or from port to inland point show year-on-year increases of more than 60 per cent," Mr Damas said.

"A minority of transpacific shipments moves under spot rates, with most shipments committed under annual contract rates. However, eastbound transpacific freight rates under annual contracts signed in May and June for the 2010-2011 season were also more than twice the previous, low levels of the 2009-2010 season," according to Drewry's research.
(Source:www.schednet.com)