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August 28 2023

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16 Journal of Commerce | August 28, 2023 www.joc.com Container Shipping Quarterly Special Report its Boston Express service from North Europe and shut down two loops connecting North Italy and the East Mediterranean with the US. The market share of MSC is largely because a third of its trans-Atlantic 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% of its capacity by cutting one ship on a 2M Alliance North Europe-US Gulf loop and has a 9.6% share of the mar- ket. Hapag-Lloyd holds a 20% share of the capacity deployed on the trade, according to Alphaliner. Sharp drop Data from PIERS, a sister company of the Journal of Com- merce within S&P Global, shows US imports from North Europe have seen monthly declines since January, with May and June both reporting a 17% drop in year-over- year volumes. US imports from the Mediterranean showed even sharper declines, falling 21% year over year in May and dropping 24% in June. Schedule reliability data from Sea-Intelligence Maritime Analysis shows the on-time performance of ships on the trade in June stood at 62.9% compared with 29% during the same month last year when ports on both sides of the Atlantic were heavily congested. Although the trans-Atlantic does not share the peak seasons of the data from rate benchmarking plat- form Xeneta. As the overheated trans-Pacific and Asia–North Europe lanes cooled off last year, trans-Atlantic rates remained elevated, and carriers began moving tonnage from the weakening east-west routes into the Europe-North America trade. With rates tumbling in 2023, that trend has begun to reverse. Mediterranean Shipping Co. is the largest carrier on the trans- Atlantic, with a current market share of 37.9%, down from 42.3% last July, Alphaliner noted. The Geneva-based carrier in May closed CARRIERS ARE STARTING to shift capacity out of the trans-Atlantic trade, according to Alphaliner, as slowing demand through the summer drags rates well below pre- pandemic levels. "The trans-Atlantic party is over," was how Alphaliner described the normalizing trade lane in its weekly newsletter in early August. It marks the end of a wild three-year ride where rates from North Europe to North America soared, reaching $8,000 per FEU in the fourth quarter of 2022 before falling off a cliff. Average westbound trans-Atlantic spot rates reached $820 per FEU as of Aug. 10, less than half the rate level recorded in the same week in pre-pandemic 2019, according to The party's over Ocean carriers shi capacity as trans-Atlantic demand slumps By Greg Knowler US imports from North Europe and the Mediterranean fell 17% and 24%, respectively, in June. Shutterstock.com US imports from N. Europe fall for fifth straight month in June Containerized US imports from North Europe, in laden TEUs, with year-over-year percentage change TEU volume 100,000 0 100,000 200,000 150,000 50,000 -25% -20% -10% 0% 10% 20% Year-over-year % change L Jul Jul Jul Oct Apr Jan 2023 Oct Apr Jan 2022 TEU Year-over-year % change TEU: TE TE 174.647k 647k 4.647k Year-over-year % change : : -17.3% -17 3% Jun, 2023 Apr 220,904 20% Source: S&P Global © 2023 S&P Global

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