Zencargo Market Update: 23rd September 2024

Ocean

• Rates on the Asia-Europe trade lane have been declining in September, as the anticipated pre-Golden Week rush failed to materialise.
• Service issues are still impacting schedules, with cargo being rolled from vessels, leading to delays across multiple carriers who have collected more cargo than the space available. 
• This means they are either rolling it to the next vessel or loading it and then discharging at the first transshipment hub to other less full services.

Air

Central China to Europe:

• Shanghai (SHA): Space remains tight ahead of the Chinese National Holiday (Oct 1-7). Last week’s typhoon caused flight cancellations and reduced payloads, leading to a backlog at PVG. Rates have increased due to uncertainty surrounding flight availability. It is recommended to book space at least one week in advance.
• Ningbo (NGB): Rates are expected to increase this week, with space remaining tight ahead of the National Day holiday. Early booking is crucial to secure space.

North China to Europe:

• Tianjin (TSN): The market remains stable, however, space is tight due to holiday demand.
• Dalian/Beijing (DLC/PEK): Major carriers are increasing rates gradually as demand grows ahead of the holiday. Dense cargo may apply for spot rates, but space is nearly fully booked before the National Day holiday. Cargo with high volume will need to be booked 7-10 days in advance.
• Qingdao (TAO): Market rates rising this week due the upcoming holiday, meaning space is tight, though spot rates still can be applied for dense cargo case-by-case.

South China to Europe:

• Guangzhou (CAN):  Carriers will be updating their rates as we’re nearing the National Day holiday  due to tight space, though spot rates remain available.
• Shenzhen (SZX): Rates are stable but all shipment bookings will need to be checked on a case-by-case basis. 
• Xiamen (XMN): Space is limited ahead of the holiday, and rates have increased since last weekend. Final rates depend on flight availability.

Ocean

• Rates for the second half of September have decreased. 
• The impending ILA strike on October 1st poses a significant risk to the East and Gulf Coast ports, with carriers announcing potential surcharges to cover additional costs and rerouting.

Air

Central China to USA:

• Shanghai (SHA): Space remains tight due to high demand ahead of the Chinese National Holiday (Oct 1-7). Last week’s typhoon caused flight delays and cancellations, leading to a backlog. Rates have increased, and it is recommended to book space at least one week in advance.
• Ningbo (NGB): Rates are expected to increase and space is limited due to pre-holiday demand. Early booking is crucial to secure space.

North China to USA:

• Tianjin (TSN): Rates remain elevated and space is tight. Carriers are offering spot rates for dense cargo.
• Dalian/Beijing (DLC/PEK): Space is fully booked before the National Day holiday  and rates have risen. Volume cargo needs to be booked 7-10 days in advance, and airlines are splitting larger shipments into multiple flights.
• Qingdao (TAO):  The market has increased due to the upcoming holiday, with space limited for East Coast destinations such as  BOS/JFK/DFW/ORD. The result is rising rates for both East and West coasts, though airlines are still releasing spot rates for dense cargo on a case by case basis.

South China to USA:

• Guangzhou (CAN): Rates have risen slightly and space remains tight ahead of the holiday. It is advised to book in advance.
• Shenzhen (SZX): Rates have increased slightly. 
• Xiamen (XMN): Space is limited, and rates depend on a case-by-case basis. Booking well in advance is advised to secure capacity.

Ocean

• Rates from India and Bangladesh have slightly decreased. However, capacity constraints remain due to congestion at transshipment hubs, including Singapore and Colombo​. 
• While space is gradually improving, carriers are still working through a backlog of bookings, making the recovery process slow. A small pre-Christmas peak is expected from India before the main peak season starts in January, coinciding with the grape harvest .
• Political unrest and flooding in Bangladesh continue to disrupt logistics, particularly at Chittagong, where inland container depots are overwhelmed​.
• Congestion continues across key transshipment ports, including Singapore (SGSIN), Port Klang (MYPKL), and Colombo (LKCMB), leading to backlogs and delays. 
• It is advised to book early as space remains tight, and further delays are expected due to continued congestion and weather-related disruptions.

Ocean

• Rates on the Transatlantic route from North Europe to the U.S. East Coast have risen, with vessel utilisation remaining high on the trade lane. Carriers are prioritising fast vessel discharge at U.S. East Coast ports ahead of the potential ILA strike​.
• In anticipation of the strike, U.S. East Coast ports have extended gate hours to expedite cargo flows. However, disruption is expected if the strike proceeds, with potential cargo delays, rerouting, and emergency surcharges.

USA

• Los Angeles/Long Beach: 6 vessels waiting, 11-day rail dwell, yard capacity at 64%.
• Oakland: 4 vessels waiting, 6-day rail dwell.
• Seattle/Tacoma: 5 vessels waiting, 12-day rail dwell.

• New York/New Jersey: 4 vessels waiting, 4-day rail dwell, yard capacity at 71%.
• Norfolk: 4 vessels waiting, 4-day rail dwell.
• Savannah: Significant improvement with only 2 vessels waiting and a 2-day rail dwell​

• Norfolk: 4  vessels are waiting with a 4-day dwell​.

Benelux

Antwerp, Belgium

• PSA 913: Yard utilisation is at 75-80%. Reefers are also at 75-80% utilisation.
• PSA 869: Yard utilisation is at 65-70%, with reefer utilisation at 45-50%.
• AGW: Yard utilisation is at 70-75%, with reefers at 60-65% utilisation.

Rotterdam, Netherlands

• ECT: Yard utilisation is at 65-70%.
• RWG: Utilisation is currently at 70-75%.

United Kingdom

Road/Rail

• Rail freight volumes in the UK saw a 7% increase year-on-year, largely driven by biomass and intermodal non-maritime growth.
• Construction volumes were also strong, with the highest quarterly value since April 1998. This growth highlights the increasing role of rail in the UK’s logistics sector, offering reliable alternatives to road haulage.

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.

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 11: Macedonia

October 12: Spain

October 14: Moldova*

October 23: Hungary, Macedonia

October 26: Austria

October 28: Cyprus, Czech Republic, Greece, Ireland (Eire), Türkiye*

October 29: North Cyprus, Türkiye

October 31: Germany*, Slovenia

November 1: Andorra, Austria, Belgium, Bosnia and Herzegovina (FBiH), Croatia, France, Germany, Holy See (Vatican City), Hungary, Italy, Liechtenstein, Lithuania, Luxembourg, Monaco, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Switzerland*

November 2: Belgium*, Finland, Lithuania, San Marino, Sweden, Åland (Ahvenanmaa)

November 3: Russia

November 4: Russia

November 7: Belarus, Transdniestria (PMR)

November 8: Belarus

November 9: Spain*

November 11: Austria*, Belgium, France, Poland, Serbia

November 13: Montenegro

November 15: Austria*, Belgium*, North Cyprus, Saint Helena

*Not in all regions