Situation

As vessel utilization remains high, freight rate adjustments will remain a recurring topic. Additionally – though more moderate – rate increases for North America have already been announced for mid-July. Overall, the transatlantic market has entered a more stable rate environment. Carriers have successfully balanced supply and demand through proactive capacity management. As a result, spot rates have increased significantly (Source: Xeneta) since the beginning of the year:

• North Europe Main – US East Coast: +54%

• North Europe Main – Mexico East Coast: +62%

• North Europe Main – Canada East Coast: +35%

Obstacles

No further rate increases have been officially announced at this stage. However, as long as vessels remain fully booked, we can expect continued pressure on freight rates. The impact of a potential US-Iran agreement remains uncertain. Even if a resolution is reached quickly, it is likely to take several months before any effects are felt across global trade lanes. In the meantime, fuel cost uncertainty remains a primary concern.

Outlook
A degree of market uncertainty persists. We are closely monitoring the impact of evolving US trade policies, which continue to be erratic and difficult to predict. At the same time, we are cautiously optimistic about the prospect of a resolution to the conflict in the Middle East. Such a development could contribute to greater market stability and help ease pressure on bunker prices. Nevertheless, bunker fuel increases are already expected for Q3.

Main Ports: North Europe to US East Coast

^{Source: Market average rates for 40‘ containers according to www.xeneta.com}

Main Ports: North Europe to US West Coast