Subscribe to our free, weekly email newsletter!


Ocean Cargo: Spot pricing escalates in Asia-U.S. trade lane

By Patrick Burnson, Executive Editor
June 21, 2010

Spot prices for transpacific shipping services have grown by more than 180 percent during the past 12 months to reach a five-year high. Experts describe the increase as a “mini container shipping boom.”

Shipping consultant Drewry’s Hong Kong-Los Angeles container rate benchmark hit $2,607 per 40-ft (FEU) container last week – 19 percent higher than the previous week and 182 percent higher than the same week in 2009.

But Drewry pointed out that the trade had been suffering with “serious overcapacity and price discounting” in 2009.

It added that the jump in transpacific container rates reflected new peak season surcharges, very tight eastbound transpacific ship capacity and a shortage of boxes, which is becoming an issue in China as well as in the US.

Drewry said 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 2009-10 season.

“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,” said Philip Damas, dditor of the Drewry Container Freight Rate Insight report, which contains the data.

“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 percent.

“It is a mini container shipping boom, ahead of the full recovery of the real economy,” he added.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

The market for supply chain management software continues to expand, highlighting the importance of software in today’s supply chains.

Amid the talk and coverage about things negatively impacting the trucking industry like increasing regulations, tight capacity, and equipment-related issues and challenges, there is one thing to always remember about the sector: it moves a lot of freight, make that more than a lot, actually.

In an effort to increase territorial coverage, improve transit time, and augment service quality in Brazil, UPS recently announced it has made significant service expansions with the opening of nine new operating facilities in the state of São Paulo.

Article Topics

News · Ocean Freight · Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA