Seize trans-Atlantic opportunities before market rebounds

Once the container shipping lines’ most steady and dependable trade-lane, and then their unexpected post-pandemic cash cow, the trans-Atlantic market has dropped dramatically and offers shippers a significant opportunity, but only if they act now, before the market rebounds.

Spot rates from North Europe to the US East Coast (USEC) have fallen over 80% since January, but it’s worth noting that while these rates have dropped rapidly, they could just as easily rise swiftly, as has been the case on other trades.

Shippers should be taking full advantage of this new reality, with some all-time lows, but they need to jump on deals while they can because, as we’ve seen from Asia to the US and EU, carriers will be determined to boost the spot market and recover margins. 

Data shows that the number of long-term contracts coming into force in 2023 is significantly down on past years, indicating that the lines are confident in seeking much higher rates and the biggest-volume shippers are not being drawn into the kind of relationship the carriers are seeking.

Trans-Atlantic volumes were down by 13.6% in the first half of 2023, with April showing a 23% year-on-year fall, while carriers have deployed excess capacity from other corridors, with capacity on the North Europe to North America East Coast rising by 24% in the first half and by more than 30% just in February and April.

The trans-Atlantic is currently in spot-rate warfare and carriers selling space at the current level are bleeding cash for every box they bring on board, but the shipping market’s unpredictability underlines the importance of bulletins like this. 

Globally there are a huge number of blank sailings and shippers should avoid assuming that trans-Atlantic rates will stay low, because the lines will be determined to recover revenues and we are seeing GRIs sticking on other routes.

We are US experts, with daily import/export air freight services, full load container departure on next vessel and weekly groupage services to most destinations.

Our long-term partner network extend across the USA, providing national Customs Brokerage, with same day clearance and delivery available at many entry points.

EMAIL our managing director, Colin Redman for more information, advice and guidance.