THE Hong Kong-Los Angeles FEU spot rate jumped 10 per cent in the last week, according to price data provided to London's Drewry Shipping Consultants by non-vessel-operating common carriers in Hong Kong.

The spot rate this week was US$1,416 per FEU, compared to $1,284 per FEU last week, but was still 0.8 per cent lower year on year.

"It's the result of the Transpacific Stabilisation Agreement's (TSA) plan to raise freight rates on January 15 [today]," said Drewry Supply Chain Advisors managing director Philip Damas in London, who expects another round of big rate hikes next week. "We are in a completely different pricing environment now."

Earlier this month the TSA called for a mid-contract emergency rate increase as of January 15 of $400 per FEU from Asia to US west coast to help its carrier members until they can seek an $800 per FEU increase in coming 2010-2011 contract talks which start this spring.

The transpacific spot rate increases are part of a strong recovery in freight rates worldwide that Drewry is seeing this year, reported Newark's Journal of Commerce, adding that transpacific spot rates on the trade lane have been flat or down week-to-week in the weeks following the end of the October peak season.