CAPACITY on the transatlantic trade increased 12 per cent through the first seven months of the year, reports IHS Media.
An extra 120,500 TEU slots were added to Europe-North America loops to take advantage of high rate levels.
Spot rates on trans-Atlantic westbound routes have risen since January 1.
The current rate from North Europe to North America valid for 30 days or less is up 24 per cent since the beginning of the year at $6,823 per TEU.
'The addition of some 120,500 extra TEU slots in Europe-North America loops in 2022 is not surprising as westbound ocean freight rates between Europe and the US east coast have risen to between $7,000 and $8,500, according to various freight rates indices,' said Alphaliner.
'This is four to five times higher compared to pre-pandemic levels and very tempting for the carriers in terms of revenue per nautical mile in view of the relatively short sailing distance.'
Another contributor to the increase is port congestion on both sides of the trade lane, with average round trip times on North Europe-US east coast and Gulf services at 52 days.
Schedule reliability on the trans-Atlantic westbound routes improved to 29 per cent in June and is down 44 per cent in the same month last year.
SeaNews Turkey
An extra 120,500 TEU slots were added to Europe-North America loops to take advantage of high rate levels.
Spot rates on trans-Atlantic westbound routes have risen since January 1.
The current rate from North Europe to North America valid for 30 days or less is up 24 per cent since the beginning of the year at $6,823 per TEU.
'The addition of some 120,500 extra TEU slots in Europe-North America loops in 2022 is not surprising as westbound ocean freight rates between Europe and the US east coast have risen to between $7,000 and $8,500, according to various freight rates indices,' said Alphaliner.
'This is four to five times higher compared to pre-pandemic levels and very tempting for the carriers in terms of revenue per nautical mile in view of the relatively short sailing distance.'
Another contributor to the increase is port congestion on both sides of the trade lane, with average round trip times on North Europe-US east coast and Gulf services at 52 days.
Schedule reliability on the trans-Atlantic westbound routes improved to 29 per cent in June and is down 44 per cent in the same month last year.
SeaNews Turkey
