Transpacific spot rate hits US$1,961/FEU, lowest since April

DREWRY's latest Hong Kong-Los Angeles container transpacific rate has fallen to US$1,961 per FEU for the week ending November 22, reported London's Containerisation International.
Rates fell 5.7 per cent from $2,079 set the previous week, the first time it dropped below US$2,000 since April 26. The spot rate hit its high point of $2,800 in August. While it has fallen with the softening slack season demand, the rate is still 57 per cent better than last November's same-week figure.
The Transpacific Stabilisation Agreement (TSA) recently suggested increasing rates in May by $400 per FEU for cargo to US west coast and $600 per FEU elsewhere.
But it forecast cargo growth from Asia to the US in 2011 will stay at the six to nine per cent range.
The Shanghai Shipping Exchange (SSE) said "supply and demand" would still be the focal point in the Far East-US trade for the first half of 2011.
Much more space to be available as many newbuildings and previously redeployed capacity would be added, leading to an ease of the pressure of capacity but causing a drop in rates, said SSE's section chief of information freight index department Ms Zhou Xiang.
"The depreciation of the US dollar and the increase of inventory goods in this nation's market will not be so optimistic," she added.