Trans-Atlantic

The collapse in ocean freight rates is a clear signal that the market is reverting to its pre-pandemic state, but the burning question for 2023 is whether that reversion is temporary.

Maersk’s new executive lineup covers 15 areas of responsibility within the carrier and is a combination of long-term company leaders and those with experience from outside the group.

As port congestion eases on the US East Coast and in North Europe, capacity freed from the bottlenecks will add to the fast-growing vessel supply at a time when economic weakness is dragging down demand, with rates certain to follow.

The cap-and-trade emissions cutting system being implemented in Europe will have a “positive influence” on decarbonization agreements at an international level, according to the European Shippers’ Council.

THE Alliance member Hapag-Lloyd says shippers can expect a “simplified” network in 2023, but that could mean larger ships, fewer services, and less transshipment.

The trans-Atlantic is the “last trade standing” with rate levels still elevated, but that may soon change as carriers move ships from the rapidly weakening trades out of Asia to Europe-US routes.

Dockworkers at Felixstowe have agreed to pay deals covering this year and next, closing the door on a campaign of industrial action at the UK port that began over the summer.

With prices on east–west routes out of Asia in freefall, high rate levels on the trans-Atlantic is encouraging carriers to shift capacity into the westbound trade, putting those rates under pressure.

The trans-Atlantic westbound trade has bucked the falling rate trend on the major trade routes out of Asia, and carriers are shifting capacity to take advantage.

An acceleration of US imports from Europe in June suggests there will be no relief through the summer for overwhelmed US East Coast terminals.

Importers in the US are finding higher volumes on the westbound trans-Atlantic are coming with soaring rate levels and record-low schedule reliability, with little relief in sight.

Carriers and analysts warn that higher-than-expected demand and resulting shifts in vessel rotations have made the US East Coast “the next hot spot” for port congestion.

After a year of growing disruption, shippers are seeking a more predictable service on the trans-Atlantic, which can be seen in far higher contract rates than just a few months ago.

The trans-Atlantic trade will report significant volume growth in 2021 as heavy US demand fills all available capacity and pushes rates to record levels.

Three ocean carriers have decided to temporarily switch US calls to Charleston instead of Savannah as more than 20 vessels are anchored off the Georgia port.

The trans-Atlantic trade lane heads into its busy fourth quarter facing the same capacity-cutting port congestion issues as the larger trades out of Asia, leaving little room for rates to drop from record highs.

Mediterranean Shipping Co. is repositioning vessels from the trans-Atlantic to the trans-Pacific in a bid to meet the market’s high demand for Asia services.

The reopening of the US and European economies after last year’s COVID-19 lockdowns spurred a resurgence in the trans-Atlantic container trade as business activity in two of the world’s largest economies showed better than expected growth in May, with increases concentrated at US ports that have undergone major expansions.

Elevated rate levels, peak season surcharges, equipment shortages, poor reliability, high demand — the challenges are mounting for shippers on the busy Europe-North America trade lane.

Multiple factors are lining up to rock the traditional stability of the trans-Atlantic, even as those on the trade prepare for strong growth in volume.

The trans-Atlantic has largely managed to avoid the extreme rate increases of the other east-west routes, but that may be about to change.

Several top French shippers have committed to a wind-driven sailing service on the trans-Atlantic as part of efforts to further reduce their cargo’s carbon footprint.

US imports from Europe have been rising steadily since August, with the trans-Atlantic so far able to shrug off the severe disruption experienced on the trades out of Asia.

A surprisingly strong rebound in the US economy through November bodes well for the headhaul trade between Europe and North America in 2021.

Alternatives to expensive air freight have been available on the trans-Pacific for years, but as space constraints make air cargo an increasingly unreliable option, a new expedited ocean product will soon be launched on the trans-Atlantic.

Maersk and MSC do not believe demand on the trans-Atlantic through the fourth quarter will be strong enough to support four Europe–North America loops.

A long-awaited recovery in the trans-Atlantic trade appears to be underway with a steep increase in US import volume from Europe for some previously hard-hit commodities.

Aggressive capacity management in response to the effects of the COVID-19 crisis and escalating tariffs has helped the top 10 container carriers operating in the Europe–US trade increase their share of the market so far in 2020.