Moving what Matters

TRANSATLANTIC OCEAN RATES are remaining elevated in early 2023, with prices still more than 250 percent higher than in 2019.

Carriers began shifting vessels to this lane as demand out of Asia waned, helping push rates down 40 percent since August 2022. However, carriers have started removing capacity here, too, with recently blanked sailings, according to Freightos, which said in a recent analysis that supply and demand are now mismatched on the transatlantic.

In the first week of February, transpacific rates dropped by one percent, to US$1,307 per FEU. This rate is 91 percent lower than the same time last year. Asia-US East Coast prices held pat at $2,652 per FEU, and are 84 percent lower than rates for this week last year. Meanwhile Asia-N. Europe prices dropped by 15 percent to $2,920 per FEU, and are 80 percent lower than rates for this week last year.

The good news is that lower volumes are leading to less congestion and more vessels arriving on time at West Coast ports. However, falling rates are also pushing smaller carriers – who started transpacific services at the height of demand – to quit the lane. And some of the large carriers are suggesting the combination of excess capacity and falling demand could lead to a price war.

For over 100 years, Oceanex has been providing efficient and reliable intermodal transportation services safely and with environmental leadership. With our fleet of 3 vessels and the largest dedicated fleet of containers and trailers servicing the province of Newfoundland and Labrador, we keep retail shelves stocked and deliver the materials that build and support our communities, keeping the economic engines of the province running.