Ocean spot rates soar on key trans-Pacific trade lane
Ocean carriers operating from Hong
Kong to Los Angeles have pushed through
a $500 general rate increase on shipments
of 40-foot-equivalent (FEU) containers.
This increase has propelled the spot rate
for the Hong Kong-to-Los Angeles corridor to its highest level of the year, according to data from a leading maritime and
supply chain consulting firm.
London-based Drewry Maritime
Research said eastbound spot rates
tracked as of Aug. 8 hit $2,452 per FEU.
That represented a 17.5-percent increase
from prices quoted just the week before,
and an 89-percent jump from rates for
the same time last year, Drewry said. It
also marked the fifth week-over-week
rate increase of more than 10 percent so
far in 2012, analysts said.
The current increase actually took
effect in two phases. The first, an increase
of $71 per FEU, was implemented in late
July. The second, a hike of $429 per FEU,
was reported Aug. 8, Drewry said.
Drewry executives attributed the
increases to a combination of tight vessel
capacity in the Asia-U.S. trades and a 7-
percent year-over-year increase in
demand. Drewry said container capacity
on the trans-Pacific route appears to be
much tighter than in the Asia-Europe
trades, where demand has been dampened by the ongoing economic crisis in
Europe.
A separate report issued in early August
by consultancy Zepol Corp. found that
July U.S. ocean import volumes, measured in 20-foot-equivalent units (TEUs),
rose 9 percent over June levels and 10. 8
percent over July 2011 figures.
Import volumes in July hit their highest levels since August 2010, according to
the Zepol report. Eight of the top 10
exporting countries to the United States
reported record-high volumes for the
year, with Taiwan and Hong Kong being
the exceptions.
Ocean import volumes are generally at
their strongest in July and August as U.S.
retailers gear up for the holiday season.
However, Zepol said that the July data
“shows an unusually big jump” that may
augur a more robust peak season than
has been seen in recent years.
Small parts are expensive. Traditional
shelving eats up valuable floor space
and exposes parts. What’s more, parts
can be tough to find and reach; keeping
accurate inventories a challenge.
The Lauyans Small Parts Storage
System (SPSS) is a USA manufactured
solution offering high density storage
utilizing vertical space for greater
footprint capacity, worker safety,
security, labor savings and the most
competitive pricing available.
Before you decide to buy any
Automated Storage System, go online
and check out our pricing.
www.SPSSonline.com
It All Adds Up To VALUE It All Adds Up To VALUE
RATES MAY DRIFT DOWNWARD
The recent gains in freight rates and
shipping volumes, however, have not
changed Drewry’s view that rates would
drift downward through the latter part of
2012. The consultancy does not consider
demand to be strong enough or capacity
tight enough to justify current rate levels.
“We tell shippers to expect that spot
rates have reached a plateau and will now
decline,” Martin Dixon, the firm’s
research manager for freight rate benchmarking, said in a statement.
Still, spot rates on the lane are 44 percent higher than the 2011 full-year average and are 40 percent higher than the
historical average for 2006 through 2011,
according to the consultancy. Because
spot market rates are often used as a
starting point for contract rate negotiations, importers and exporters may need
to adjust their 2013 negotiation strategies
to brace for higher prices, Drewry said. ;
Lauyans & Company, Inc.
1-866-LAUYANS (528-9267)
USA Manufactured
Invata Intralogistics Inc., a provider of supply chain and facilities optimization,
software, and controls, has completed a new automated DC in Hartland, New
Brunswick, Canada, for Old Dutch Foods. … Interstate Warehousing has completed the phase-IV expansion at its Indianapolis (Franklin), Ind., cold storage
facility. The 140,000-square-foot expansion brings the total size of the facility
to 568,000 square feet. Interstate Warehousing’s Chicago (Joliet), Ill., facility is
also undergoing expansion. The site expects to begin operating an additional
100,000 square feet of freezer space sometime this month.
ground breakers
