Source: Market average rates for 40‘ containers according to www.xeneta.com
Trade Analysis: Transatlantic Westbound
Situation
With the ongoing water level crisis in the Panama Canal coinciding with disruptions in the Red Sea, many shippers have been facing uncertainties in their global supply chains, especially along the US East Coast. The collapse of the Francis Scott Key Bridge in Baltimore will cause even more problems as this is one of the busiest ports on the US East Coast. Traffic to and from Baltimore’s major terminals is currently suspended. Leading container shipping lines have already responded by diverting the first ships to other ports in the area.
In addition, some shipping alliances have reduced their capacities on the transatlantic trade to balance out the current space and demand situation and to support the bigger trades in the market. Of course, this was already happening before the collapse of the bridge in Baltimore.
Obstacles
Demand from Europe is showing a slight increase, as is usually the case before the Easter season. The available capacity is sufficient to accommodate the demand.
The diversion of ships around the Cape of Good Hope could lead to equipment shortages in certain areas of the EU and potential congestions in ports.
Outlook
Carriers have announced rate increases for the new quarter, but so far we have only seen minor increases. Several carriers are extending their Q1 rate levels into Q2, so there is not much pressure on rates in the transatlantic market.
Nonetheless, the market outlook is expected to remain dynamic and volatile until normal routing through the Suez Canal is restored.
What does a bird have to do with cranes?
- Facts
It’s impossible to think of a world without cranes. Whether used for loading cargo, or in the construction industry – cranes are among the most important man-made mechanical devices.
A talk with Rolf Habben Jansen, CEO of Hapag Lloyd
We had the opportunity to talk to CEO of the fifth largest container carrier worldwide about the recent developments in seafreight and acquisition plans.
