Ocean rates are continuing to drop especially on the Eastbound Transpacific trade lane.
According to an article on the JOC, the latest data from Drewry Shipping consultants shows that the average spot rate from Hong Kong to Los Angeles is now at $986 for an FEU. This represents a decrease of 51.6 percent compared to one year ago.
We are definitely seeing a race to the bottom in terms of ocean rates. With volumes down substantially and thousands of empty containers sitting on idle vessels all over the globe, many carriers are scrambling to fill vessels. From an NVOCC perspective, I am seeing many importers testing the waters in terms of what rate levels the current market will bear. Unfortunately (for many 3PL providers), with the economic downturn, I am seeing many customers using pricing as the main deciding factor when choosing new freight forwarding service offerings.