In Q3, the Xeneta and Marine Benchmark Carbon Emission Index (CEI) for North Europe to the US East Coast trade reveals insights into carriers’ emissions performance and the impact of over-capacity management. Slow-steaming and reduced filling factor contribute to a CEI drop from 90.3 (Q2) to 83.2 (Q3). The filling factor fell to 69.1%, indicating carriers deploying ships from North Europe to the US East Coast as a strategy to reduce supply elsewhere. Despite lower ship size, Evergreen tops the CEI at 57.3, with a younger fleet and slower-steaming key to its ranking. Lowering emissions becomes a delicate balance for carriers.
Filling Factor Plunge
Since Q3 of last year, there has been a decrease of nearly twenty points in the filling factor for North Europe to US East Coast trade, it was at 69.1%. The route is being used by carriers for parking purposes, where they have parked their surplus ships from other trades causing low demand hence, a reduced filing factor. However, at an overall of 71%, the filling factor in 2023 did not go past what it was never found lower than -2022’s 79.7% The lowering of traffic volume among carriers is a tactic aimed at equilibration of supply and raising their rates.
North of Europe to USA East–Coast freight rates hit record low
Rates for the trade between N. Europe and E. Coast US dropped down to USD 1,300/FEU in early Nov. Carrier sacrifices for profitability make worries about the effect on the CEI score amid tightened emissions rules. Carbon efficiency in Evergreen’s Q3 2023 CEI leadership underscores that, young fleets and slow steaming. The carbon emissions index (CEI) provided by Xeneta is essential given that shippers constantly battle to ensure their profitability without adequate capacity.
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Source: XENETA
