As a 3PL partner, we are closely monitoring the trans-Atlantic trade lane for any potential rate collapses. Recently, carriers have been shifting surplus capacity from collapsing markets on east-west trades, which is predicted to outstrip headhaul demand on the trans-Atlantic. This comes after average monthly declines of 3.4% over the past three months, according to Sea-Intelligence Maritime Analysis. In its latest newsletter, the organization warned of an imminent rate collapse on the trade lane, stating that “we are about to enter a period where the trans-Atlantic capacity growth will be larger than anything else seen over the past ten years.” While rate indices show that average spot rates on the trans-Atlantic are up 14% year over year, this is far out of step with Asia-US West Coast rates that have plummeted 80%, and Asia-North Europe spot rates are down 88%.
It is important for us to continue monitoring this situation closely and adjust our strategies accordingly. Information, flexibility, and patience are our best tools to keep things moving in this ever evolving landscape. You can count on the experts as RS Express to keep you informed and craft the best solutions for you and your cargo.