Situation

There have been no significant changes in the market. Demand to North America remains low but stable, with no clear signs of recovery.
Shipping lines are operating at or near their cost limits and are implementing General Rate Increases (GRIs) as part of an 'Atlantic Rate Restoration' initiative. However, GRIs previously announced for February have already been waived or postponed.

Heavy snowfall and extreme cold at the end of January are affecting port operations along the northern East Coast. There are currently delays to cargo handling, particularly at the Port of New York City. Further delays and congestion may occur if the severe weather conditions persist.

 Obstacles

If demand remains at current low levels or declines further, shipping lines are likely to introduce additional cost control measures.
While further GRIs cannot be ruled out, current market conditions make their successful implementation challenging.

 Outlook

Although the Mercosur trade agreement was signed in January, ratification is expected to take several more months. Once implemented, it is anticipated to significantly boost trade with participating Latin American (LATAM) countries.

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