Drewry transpac spot rate off 5pc, further declines expected

THE Drewry Container Rate Benchmark dropped five per cent in its most recent week, leaving the spot market pricing measure down 23 per cent from the year's high point set three months ago.

"I believe the weaker rates on the eastbound transpacific route come from the reduced demand associated with the slack season and the recent addition of capacity by carriers," said Drewry Supply Chain Advisors divisional chief Philip Damas.

Mr Damas also noted that carrier capacity had increased 13 per cent in October year on year, which further depressed rates.

The benchmark rate of US$2,179 per FEU for the week ending November 1 was still 66.2 per cent higher than the same week last year, when it was $1,311 per FEU, reported Newark's Journal of Commerce. But the benchmark produced by London's Drewry Supply Chain Advisors had been declining since a sharp rate rise earlier in the year, and went lower by $659, or 23 per cent against its 2010 peak of $2,838 per FEU on August 1.

But this week's benchmark rate is still 66.2 per cent higher year on year when it hit $1,311 per FEU. Drewry's market intelligence found carriers and Chinese booking agents who charge no more than $2,000 per FEU from the southern PDR to Los Angeles, the lowest levels seen since April.
(Source:www.schednet.com)