Spot Rates Stabilize Before Mid-October GRI

Benchmark spot rates from Hong Kong to Los Angeles remained relatively the same for the third straight report, showing stability in the trans-Pacific trade lane ahead of the Transpacific Stabilization Agreement’s (TSA) mid-October generate rate increase (GRI). The spot rate from Hong Kong to Los Angeles remained at $1,875 per 40-foot container (FEU) this week. However, the rate has tumbled over 21 percent since Sept. 3, as the peak-season concluded and prior GRI’s failed to hold.

Members of the TSA have also agreed on recommending a GRI for October 15th. The group confirmed it will recommended $600 per FEU for its carriers, the first rate increase since a Sept. 1 GRI that netted an initial $260 per container before falling again in the subsequent weeks.

Additionally, the TSA responded to the tanking rates on the backhaul lane from the U.S. to Asia by setting guidelines for minimum rates on the trade lane, announced on Oct. 8. The minimum rates, on all-water shipments of waste paper, hay, metal and plastic scrap, are recommended at $300 per 40-foot container from the U.S. West Coast and $750 per FEU from the East and Gulf Coasts. The minimum rates will take effect Nov. 1. Further increases are expected in December and the first quarter of 2015.