Mid 2020, Trans-Atlantic trade faced a dip in demand with Trans-Pacific movement soaring with COVID-19 affecting US west coast ports harder than the east. Since then, freight rates have increased trifold with strategic capacity management efforts to maintain the industry. With faster transit time for imports from Asia reaching East Coast Ports and lesser trade traffic from imports, it caused the Trans-Pacific shipping to soar. However, this has caused certain impacts in terms of land transport logics and logistics as the United States relying heavily on rail and road transport to ensure swift delivery of their imports and economic policy. The West Coast has a better road and rail infrastructure compared to that of the East.
Imports volumes from Europe via Trans-Atlantic shipping freight routes have increased significantly since mid-year and well into the new year. Whilst projections of COVID-19 cases in the US are set to rise, the vaccine inoculations have made the industry hopeful with consumerism behaviour set to be steady. A steady growth in demand has kept ocean carriers busy and with trans- Atlantic shipping freight rising in the last quarter of 2020 with 2M alliance partners still suspending four Trans-Atlantic shipping freight routes till the end of 2020.
The recent change in administration has added another layer of optimism, with many trade players anticipating a potential easing of US tariffs on Europe. This shift in geopolitical dynamics holds the promise of fostering more favorable trade conditions, paving the way for enhanced economic collaboration.
With steady freight rates and boost of trans-Atlantic shipping freight from Europe, industry experts are optimistic in terms of consumer behaviour that has attributed to economic balance during the pandemic. Also, with the recent administration change, many trade players are optimistic that US tariffs on Europe will ease. Furthermore, with the vaccine rollout, more and more business owners are looking to invest in equipment which signifies a positive outlook to come in the rest of 2021.