Trans-Atlantic shipping industry in turmoil as rates reach all-time lows

Posted on August 29, 2023   |  

The previously thriving trans-Atlantic shipping sector witnessed a significant downfall in spot rates, sinking below levels observed before the pandemic.

The trans-Atlantic trade transformed dramatically in 2022, gaining prominence in the container freight market with sustained high rates even during market downturns.

Israel-based Zim and Germany-based Hapag-Lloyd encounter hurdles due to sinking rates in the trans-Atlantic market, starkly contrasting its previous resilience.

Rates between Rotterdam and New York reached their zenith in November 2022, plummeting by 79% since then, indicating a significant decrease. A similar trend is seen in the Freightos Baltic Daily Index.

Amidst falling spot rates, contract rates in the trans-Atlantic remain elevated, surpassing pre-pandemic levels and current spot rates. This divergence contrasts the trans-Pacific, where spot rates exceed contract rates.

Long-term rates in the North Europe-East Coast lane more than double spot rates, highlighting the remarkable difference between them and their evolution since the pre-COVID era.