Source: Market average rates for 40‘ containers according to www.xeneta.com
Trade Analysis: Transatlantic Westbound
Situation
With business returning to normal, port congestions are easing up and vessel waiting times at the US East Coast are improving. Thanks to better vessel turnaround, the number of schedule delays is declining, although the situation is still somewhat tense in the ports of Savannah, Houston and Oakland. The downward trend in rates continues, even though capacity has decreased and demand is turning negative. Rates are expected to decline further in the coming months.
Obstacles
Vessels are being realigned in a schedule recovery process, and due to previous delays, some services are still experiencing week-long blank sailings. In addition, inland transportation systems in the United States remain strained due to ongoing rail car shortages. There is also still a backlog at inland terminals due to very limited truck driver availability. Demand to Canada is still very high. We are also noticing high levels of congestion in Canadian ports, slowing down on-carriage services.
Outlook/Solutions
The downward trend in rates continues as both capacity and demand have declined. Despite this, the trade lane is currently the most profitable in the market, which is why new carriers are trying to enter this market segment. Carriers are preparing for the new IMO2023 regulations to further reduce carbon emissions. For example, 2M has announced that each of their three existing services will be expanded with an additional vessel while two services will remain unchanged, but their loop will soon start calling at fewer ports. With these changes, both carriers plan to save on fuel and emissions and also improve schedule reliability.
“We are the natural start and final stage of the Silk Road”
- Interviews
Rotterdam is known as Europe’s largest port, and we invited Emile Hoogsteden from the port’s management to talk to us about their competitors and the impending Brexit.
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.
