The spot rate for shipping a 40-foot container from Hong to Los Angeles jumped 17.9 percent in the week ended Jan.18.
The spot rate for shipping a 40-foot container from Hong to Los Angeles jumped 17.9 percent in the week ended Jan.18 compared to the week earlier as U.S. importers largely went along with the mid-contract ?emergency rate charge? that was implemented on Jan. 15 by the 15 carrier members of the Transpacific Stabilization Agreement.
The spot rate in the latest week was $1,669 per FEU, up 17 percent from $1,427 in the same week in 2009 and the first year-over-year increase in the spot rate in well over a year. The spot rate in the week ended Jan. 11 was 10.3 percent higher than in the first week in January, but it was still lower than the rate a year earlier.
Earlier this month the TSA called for a mid-contract emergency rate increase as of Jan. 15 of $400 per 40-foot container shipped from Asia to West Coast ports to tide its carrier members over until they can seek an $800 per FEU increase on containers shipped to West Coast ports in their 2010-2011 contracts.
?We have seen quite a solid discipline by the carriers to push for their emergency rate increase,? said Philip Damas, division director of Drewry Supply Chain Advisors in London. Drewry compiles the index of spot rates from data it collects from non-vessel-operating common carriers in Hong Kong.
He said the increases are part of a recovery in ocean freight rates that Drewry is seeing on all the major east-west trade lanes this year.