Zencargo Market Update: 27th August 2024

Ocean

• The market continues to show signs of softening, with rates for September showing  decreases and space availability has improved. 
• Blank sailings remain in place but are less frequent than before. Equipment issues are also improving across the board​.
• Congestion remains an issue at key transshipment ports, with ongoing delays and backlogs. The situation is exacerbated by vessel delays and blank sailings, compounding capacity and equipment challenges.

Air

Central China to Europe:

• Shanghai (SHA): Booking activity has increased with the end of the month, leading to limited space availability. Rates are expected to increase this week and continue rising next week. It is advised to book space at least one week in advance.
• Ningbo (NGB): The market is facing space shortages, with air freight rates increasing due to limited capacity. Final rates depend on actual flight checks and are handled case by case​.

North China to Europe:

• Tianjin (TSN): The market remains stable this week. 
• Dalian (DLC)/Beijing (PEK): Rates with most major airlines have increased this week, particularly for dense cargo. Space is fully booked, and hot weather is impacting loading capacity. It is advised to book cargo spaced 7-10 days in advance.
• Qingdao (TAO): The market is stable, with space more readily available. Rates have decreased slightly, with spot rates available for dense cargo.

South China to Europe:

• Guangzhou (CAN): As the peak season approaches in late August and September, rates are increasing, and space is tightening. 
• Shenzhen (SZX): The market remains stable, with rates slightly decreasing this week.
• Xiamen (XMN): Rates are confirmed case by case based on actual flight bookings.

Ocean

• Canada has narrowly avoided a rail strike thanks a late ruling forbidding workers from industrial action, though the Teamsters Canada Rail Conference has vowed to mount a legal challenge.
• The East Coast may also face industrial action, as the current contract expires on the 30th of September, putting East Coast and Gulf ports at risk. Along with increase in rates for the of August, this has prompted shippers to move stock earlier than planned.

Air

Central China to USA:

• SHA (Shanghai): The market is experiencing increased booking activity as the month-end approaches, leading to limited space availability compared to previous weeks. Rates are expected to increase this week and continue rising next week. It is suggested to book space at least one week in advance​.
• NGB (Ningbo): Space is very limited, and air freight rates have increased. It is crucial to book early to secure space, with final rates depending on actual flight availability.

North China to USA:

• TSN (Tianjin): The market is tighter compared to last week.
• DLC/PEK (Dalian/Beijing): Dense cargo may qualify for spot rates, and volume cargo needs 7-10 days’ advance booking. Hot weather is affecting loading capacity, with space fully booked through the weekend​.
• TAO (Qingdao): The market to the US is stable this week, though space is tight to some destinations like BOS, JFK, and DFW. Rates have slightly decreased, but airlines are still releasing spot rates for dense cargo​.

South China to USA:

• CAN (Guangzhou): As the peak season approaches, all airlines are marking up rates, and space is tightening. 
• SZX (Shenzhen): Rates have slightly increased this week. All shipments need to be checked with carriers on a case-by-case basis.
• XMN (Xiamen): The market has improved since last Friday, with increased bookings and limited space compared to previous weeks. Final rates depend on actual flight availability.

Ocean

• The market from the Indian Subcontinent to Europe remains tight, with Bangladesh rates especially high.
• Heavy congestion continues at transshipment ports such as Singapore and Colombo. In Bangladesh, severe flooding has caused a 65-kilometre traffic jam on the Dhaka-Chittagong highway, severely slowing cargo movement and affecting the overall logistics chain.
• The port of Chittagong is facing significant operational difficulties due to the flooding, which has weakened transportation links to and from the port. This has resulted in delays and increased logistical challenges. Meanwhile, space from India is still tight, although capacity is slowly improving​.

Ocean

• The North Europe to US East Coast trade is experiencing tightening space.
• Carriers are observing the impact of reduced capacity, as vessels are fully booked. 
• In the Mediterranean, congestion continues to affect major ports in Italy and Spain, with average wait times of 4-7 days. Strikes at ports in Southern Italy are exacerbating the situation. These disruptions are now extending to the Eastern Mediterranean, where rates are beginning to rise.

Benelux

• Antwerp, Belgium 
  • PSA 913: Yard at 71% utilisation. Reefers at 68%.
  • PSA 869: Yard at 71% utilisation. Reefers at 46-50%.
  • AGW: yard at 80-85%. Reefers at 80 – 85%% utilisation.  
• Rotterdam, Netherlands
  • ECT: Yard at 75-80%.
  • RWG: Utilisation at 70-75%.  

United Kingdom

Road/Rail

• GB Railfreight (GBRf) has added four new electric Class 18 hybrid+ shunt locomotives as part of its decarbonisation drive.
• These locomotives are part of GBRf’s broader strategy to reduce carbon emissions in the UK’s supply chains, supporting Network Rail’s Supply Chain Operations (SCO) services​.

European Bank Holidays

We anticipate a shortage of availability and the occurrence of delays around the bank holiday periods. Plan ahead and allow extra time for your products to be delivered.

Aug 15 – Austria, Belgium, Croatia, Cyprus, France, Germany*, Greece, Italy, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovenia, Spain

Aug 29 – Slovakia

September 2 – Luxembourg

September 6 – Bulgaria

September 8 – Malta, Spain

September 9 – Spain

September 11 – Spain

September 15 – Slovakia

September 17 – Spain

September 20 – Germany

September 21 – Malta

September 22 – Bulgaria

September 23 – Bulgaria

September 24 – Austria

September 27 – Belgium

September 28 – Czech Republic

October 1 – Cyprus

October 3 – Germany

October 5 – Portugal

October 9 – Spain*

October 10 – Austria*

October 12 – Spain 

October 23 – Hungary

October 26 – Austria 

October 28 – Cyprus, Czech Republic, Greece, Ireland (Eire)

*Not in all regions