Transpacific rates hit lowest point in 19 months at US$1,525/FEU

FACING a slowdown in the US economy and increasing containership capacity, the Drewry Container Rate Benchmark for Hong Kong-Los Angeles trade lane dropped to a 19-month low of US$1,525 per FEU since January 11.

The benchmark rate already fell to a one-year low at the end of July and hit $1,636 from July 11 to July 25, shrinking 46.3 per cent from $2,838 per FEU recorded in July 2010.


Carriers have curtailed services with many reporting quarterly losses, including Hanjin, "K" Line, Neptune Orient Lines and NYK, reported Newark`s Journal of Commerce, which added that Drewry`s shipping consultants sees east-west freight rates, excluding fuel, declining 20.8 per cent in 2011 year on year.