Montreal box traffic, rates go up
The combination of rising traffic and a capacity squeeze on the North Europe/Montreal/north Europe are starting to push up freight rates.
Despite the recent withdrawals of transatlantic services calling at the port of Montreal, container traffic at the Canadian port increased 12 percent in the first three months to 303,498 TEUs.
Last week, vessel-sharing agreement partners CMA CGM, Lloyd Triestino and Zim Integrated Shipping Services said they would end their weekly Europe Canada Express service calling at Montreal. CP Ships also cut capacity during the first quarter on one of its north Europe/Montreal loops from 2,400 TEUs to about 1,600 TEUs per week.
Freight rates on this route are rising steadily every three months, a senior forwarding executive told American Shipper.
Dominic J. Taddeo, Montreal Port Authority president and chief executive officer, said he expects the North Atlantic market to continue to grow. “It is realistic to expect a 4 percent increase in container traffic by the end of the year,” he said.