Low River Levels Force Transatlantic Low Water Surcharges
Low St. Lawrence River water levels trigger new vessel surcharges for European cargo moving to the Port of Montreal.
Transatlantic Freight
Trade Corridor
Shipping routes connecting the east coast of North America with the major ports of Northern Europe facilitate the flow of high-value industrial and consumer goods. Heavy volume in transatlantic freight consists of machinery, chemicals, automotive parts and luxury goods moving between these two mature economies. This market is characterized by a balance of trade that is generally more stable than the transpacific routes dominated by Asian manufacturing.
Carrier Capacity
Vessel deployments on these lanes are managed by large global alliances that share space on a fixed number of weekly services. Fluctuations in transatlantic freight rates occur when carriers add or remove ships to match seasonal demand shifts. During periods of high demand, space becomes a premium and shippers may face equipment shortages.
Conversely, an oversupply of vessels can lead to rapid price drops as lines compete to fill their hulls.
Market Driver
Economic performance in the Eurozone and the United States directly influences the volume of goods moved. A strong currency in the destination market typically increases the flow of exports from producing regions. Efficiency in major arrival hubs also plays a role in the total transit time for these shipments.
High schedule reliability remains the primary requirement for manufacturers who use these routes to support just-in-time production processes.