Zencargo Market Update: 2nd December 2024

Ocean

• Rate increases announced in early December were partially absorbed by market dynamics, stabilising slightly above November levels. Blank sailings continue to constrain capacity, particularly mid-month​.
• Blank sailings are significantly impacting capacity deployment, with the second half of December seeing a week-on-week reduction of 16% to 27%.

Air

Central China to Europe:

• Shanghai (SHA): The market remains very tight, with space overbooked. Booking at least a week in advance is highly recommended to secure capacity.
• Ningbo (NGB): Demand continues to increase, driving space constraints. Early booking is essential as rates adjust to peak season conditions​.

North China to Europe:

• Tianjin (TSN): Space is tight, and early bookings of 5–6 days ahead are required. Rates are trending higher for all shipments​.
• Dalian/Beijing (DLC/PEK): Capacity challenges persist. Dense cargo bookings often require flight splits, with advance planning critical to avoid delays​. It is advised to book 7-10 days ahead to book and accept flight split. 
• Qingdao (TAO): Space remains constrained, particularly to key European hubs. Bookings should be handled case-by-case to secure timely departures​.

South China to Europe:

• Guangzhou (CAN): The market is busy, space is tight and rates are higher. 
• Shenzhen (SZX): Similar to Guangzhou, the market on is busy and all carriers have increased their rates this week.
• Xiamen (XMN):  The EU market is increasingly busy as space is very tight especially to Amsterdam and London Heathrow. Final rates need to be checked on a case-by-case basis.

Ocean

• Container freight rates decrease for the first half of December despite  healthy volumes being recorded from Asia. Cargo front-loading ahead of the proposed U.S. tariffs.
• The West Coast has experienced the steepest rate declines, as capacity continues to outpace demand growth. A fresh round of rate hikes is expected in December, supported by increased volumes ahead of the tariff changes and the year-end shipping rush.

Air

Central China to USA:

• Shanghai (SHA): Airline costs are increasing significantly due to the busy market. Please check rates and space on a case-by-case basis. 
• Ningbo (NGB): Space is overbooked across most routes. Rates continue to trend upward, reflecting limited capacity​.

North China to USA:

• Tianjin (TSN): Major carriers are facing high demand, with space requiring 5– 6 days advance booking. Volume cargo often requires splitting​.
• Dalian/Beijing (DLC/PEK): Rates are rising across most airlines. Space availability is limited, and bookings need to be confirmed 7-10 days ahead with possible flight splits. 
• Qingdao (TAO): Space remains constrained, particularly for East Coast destinations. Shippers should plan shipments well in advance​.

South China to USA:

• Guangzhou (CAN): The market is extremely busy, with limited capacity driving delays. Advance booking is essential to secure shipments​.
• Shenzhen (SZX): Air freight demand has further decreased and the market remains busy this week. 
• Xiamen (XMN): Costs continue to increase for the upcoming holiday season. Final rates depend on a case-by-case basis. 

Ocean

• Space is relatively available as demand weakens. Some carriers anticipate an early peak season in January, driven by pre-loading ahead of the traditional end-of-January peak. Early bookings are strongly recommended​.
• Mundra Port continues to face delays of up to 48 hours due to congestion. A general shortage of 20ft containers persists in Delhi ICDs, while Nhava Sheva faces inventory challenges.
• Chattogram Port saw a 10% increase in container handling from August to October compared to last year, clearing backlogs caused by earlier political unrest. Continued stability could sustain this growth.
• Congestion at Colombo remains a critical issue. Bad weather in North Europe PODs is also causing schedule disruptions.

Ocean

• Capacity remains tight across most carriers for both North and South Europe. The Port of New York continues to experience the highest demand, with space particularly constrained.
• Blank sailings are scheduled for Weeks 47–52, primarily affecting US Gulf and US East Coast (USEC) routes. These cancellations predominantly impact departures originating from North Europe and the East Mediterranean​.
• Demand remains robust across North and South Europe, with the West Mediterranean showing particularly high activity. Shippers targeting ETAs before January 15 are prioritising early sailings, further fueling the demand surge.

• The blank sailing program for Weeks 47–52 has contributed to backlogs, with capacity failing to meet the elevated demand for early departures. Delays and scheduling challenges are expected to persist through December.
• Rates for December remain stable across most carriers, reflecting the trends observed in November. Both North and South Europe routes have avoided significant fluctuations despite capacity constraints​.

USA

• Los Angeles/Long Beach: 4 vessels waiting to berth, down by 2. Rail dwell has improved to 9 days, with yard capacity at 77%.
• Oakland: 5 vessels waiting, with a 6-day rail dwell. Conditions remain stable compared to last month.
• Seattle/Tacoma: 11 vessels waiting, up by 3. Rail dwell times remain steady at 7 days, with increased seasonal activity contributing to the rise in vessel queues.
• New York/New Jersey: 3 vessels waiting with a rail dwell of 3 days, and yard utilisation is at 73%.
• Norfolk: 5 vessels waiting, down by 1. Rail dwell remains 4 days, with berth availability improving as construction progresses.
• Savannah: 5 vessels waiting, a significant drop of 7 vessels. Rail dwell is now at 2 days.

Benelux

Belgium – Antwerp

• PSA 913: Yard utilisation at 75–80%, with reefer utilisation also at 75–80%.
• PSA 869: Yard utilisation at 75–80%, with reefer utilisation at 40–45%.
• AGW (Antwerp Gateway): Yard utilisation at 65–70%, with reefer utilisation at 50–55%.
• Heavy winds are forecasted over the weekend, potentially disrupting operations across Antwerp’s ports.

Netherlands – Rotterdam

• ECT: Yard utilisation at 65–70%.
• RWG: Yard utilisation at 70–75%.
• Similarly to Antwerp, heavy winds are expected to impact operations at all ports in Rotterdam over the weekend.

United Kingdom

Road/Rail

• The UK, reflecting broader European trends, faces a significant truck driver shortage. According to the International Road Transport Union (IRU), Europe currently has around half a million vacant positions, representing 12% of all driver roles. This shortage is expected to worsen, with unfilled positions potentially rising to 15% next year due to economic growth increasing freight activity.

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.

December 3: Spain*

December 6: Finland, Spain

December 8: Austria, Italy, Malta, Portugal, Spain

December 9: Spain*

December 13: Malta

December 23: Estonia*, Latvia

December 24: Austria*, Bulgaria, Czech Republic, Denmark*, Estonia, Finland*, Germany*, Hungary, Latvia, Lithuania, Luxembourg*, Portugal*, Slovakia, Sweden*

December 25: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

December 26: Austria, Belgium*, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France*, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta*, Netherlands, Poland, Romania, Slovakia, Slovenia, Spain*, Sweden

December 27: Hungary, Ireland (Eire), Romania

December 30: Latvia

December 31: Denmark*, Estonia*, Germany*, Latvia, Sweden*

January 1: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

January 2:  Romania, Slovenia

January 3: Romania

*Not in all regions