Let’s focus this week on this important Southbound route from Europe. This trade lane has plunged $500.00 in the last 4 months (40HC), according to Upply calculations. Discover the insight of Captain Upply.
Worldwide automotive relocations are seriously impacting this trade lane. European manufacturers have been moving their production lines to Eastern Europe and the Mediterranean. At the expense of Latin America, this evolution has positioned these areas as the heart of automotive Supply Chains.
The key issue here is that there isn’t much substitution cargo available ex-Europe to sustain the market. The solution may come from using smaller ships, but then plugging capacities maybe an issue for the Northbound voyages compared to the current fleet type.
Hamburg Süd, the long term established market leader in this route, may record a substantial downturn. This German company, part of the Maersk Group, is certainly looking for options to cope with this tense environment.
To discover the latest trends on ocean freight rates, go to the benchmark page of upply.com!
See you next week,
Captain Upply
Photo Credit : Dreamstime
