Spot rates from Hong Kong to Los Angeles dropped to US$1,486 per FEU based on Drewry Shipping Consultants' weekly benchmark, hitting the lowest point in 21 months and showing a 35.4 per cent decline year on year, Shippingazette reports.
Compared to the highest rates of US$2,119 in early January, the transpacific rates have slumped 29.9 per cent so far, reported Newark's Journal of Commerce, adding that the spot index has fallen 20 per cent since August 2010.
Facing shrinking demand and freight rates, carriers have started to curtail services and to idle part of their fleet in the weaker-than-expected winter season.
Though many shippers have signed annual contracts with ocean shipping lines for transpacific trade, more of them have turned to non-vessel operating common carriers (NVOs), shipment forwarders that do not own any vessels but function as carriers, raising the importance of market spot rates as a vital reference since early last year.
Compared to the highest rates of US$2,119 in early January, the transpacific rates have slumped 29.9 per cent so far, reported Newark's Journal of Commerce, adding that the spot index has fallen 20 per cent since August 2010.
Facing shrinking demand and freight rates, carriers have started to curtail services and to idle part of their fleet in the weaker-than-expected winter season.
Though many shippers have signed annual contracts with ocean shipping lines for transpacific trade, more of them have turned to non-vessel operating common carriers (NVOs), shipment forwarders that do not own any vessels but function as carriers, raising the importance of market spot rates as a vital reference since early last year.