SIMIC

OCEAN carriers are shifting capacity out of the transatlantic trade, as slowing demand takes rates below pre-Covid levels, says Paris-based consultant Alphaliner.

This marks the end of a wild three-year ride where rates from North Europe to North America soared, reaching US$8,000 per FEU in the last quarter of 2022, according to its weekly newsletter.



Xeneta assessed the spot rate at $887/FEU, almost half the rate level recorded on August 2, 2019.



As the overheated transpacific and Asia-North Europe lanes cooled off last year, transatlantic rates continued to climb and carriers began moving tonnage from the weakening east-west routes into the Europe-North America trade. With rates tumbling, that trend has begun to reverse.



Mediterranean Shipping Co (MSC) is the largest carrier on the transatlantic with a current market share of 37.9 per cent, down from 42.3 per cent last July, Alphaliner noted MSC closed its Boston Express service in May and shut down two loops between North Italy and the east Mediterranean to the US.



The large market share of MSC is largely because a third of its transatlantic fleet is deployed in the Mediterranean-US West Coast California Express service that operates 15 ships of 8,800 TEU to 12,200 TEU.



Maersk removed 5.2 per cent of its capacity by cutting one ship on a 2M Alliance North Europe-US Gulf loop and has a 9.6 per cent share of the market. Hapag-Lloyd holds a 20 per cent share of the capacity deployed on the trade, according to Alphaliner. PIERS data shows US imports from North Europe have seen monthly declines since January, with May and June both reporting a 17 per cent drop in year-on-year volumes. US imports from the Mediterranean showed even sharper declines, falling 21 per cent year on year in May and dropping 24 per cent in June.