Zencargo Market Update: 24th February 2025

Ocean

• A GRI has been announced for March, but some carriers are already mitigating the increase. Rates are still expected to rise compared to late February levels, though likely at a moderated level.
• Space remains widely available for now, but short-term bookings (within a week) may face difficulties. Capacity is expected to increase through early March, followed by some blank sailings.
• North Europe ports continue to face congestion, with delays of 5-9 days in Rotterdam, Antwerp, and Felixstowe. Transshipment limitations are in place in Rotterdam and Antwerp to prevent terminal closures. 
• No changes in routing strategies as carriers continue using the Cape of Good Hope.

Air

Central China to Europe:

• Shanghai (SHA): Market stable with little change in rates. Spot rates are available case by case, with variations in line with FBA shipments.
• Ningbo (NGB): Rates remain steady, with final pricing depending on actual flight dates. 

North China (DLC/TSN/TAO/CKG/BJS) to Europe:

• Tianjin (TSN): Market is slow; SQ offers competitive rates to LHR with longer transit times. Space requires 4-5 days’ advance booking.
• Dalian/Beijing (DLC/PEK): Most airlines maintain stable rates. Spot rates available for dense cargo. Volume cargo requires 6-7 days’ advance booking and may be subject to flight splits.
• Qingdao (TAO): Market is stable, with slight adjustments in rates depending on flight schedules.

South China (CAN/SZX/XMN) to Europe:

• Guangzhou (CAN): Rates stable; spot rates available case-by-case.
• Shenzhen (SZX): No major shifts in pricing; normal market conditions.
• Xiamen (XMN): Airlines are monitoring demand closely, adjusting costs as necessary. Transport and handling functioning as normal.

Ocean

• Spot rates continued to decline in late February, with overall utilisation just above 80%. Some adjustments were made to Peak Season Surcharges (PSS) on long-term contracts.
• Port congestion remains an issue at multiple US ports.
• There has been rapid capacity recovery after CNY, with demand also increasing. Space availability has improved compared to pre-CNY levels.

Air

Central China (SHA/NGB) to USA:

• Shanghai (SHA): Market stable; pricing remains largely unchanged, though subject to FBA volumes, which can potentially increase costs during periods of high demand.

• Ningbo (NGB): Rates are steady, with some reductions and final costs determined on a case-by-case basis.

North China (DLC/TSN/TAO/CKG/BJS) to USA:

• Tianjin (TSN): The  market is slowing; KE/OZ/JL provide earlier ETDs with 4-5 days’ booking lead time.

• Dalian/Beijing (DLC/PEK): Rates are stable and spot rates can be applied to dense cargo. Volume cargo needs 6-7 days’ advance booking and may face higher rates.

• Qingdao (TAO): Rates to the US remain stable with space available and spot rates on demand for dense cargo.

South China (CAN/SZX/XMN) to USA:

• Guangzhou (CAN): Rates have increased slightly and space is a little tight. Advised to check spot rates on request.

• Shenzhen (SZX): The market is stable, and rates are quoted on a case-by-case basis. 

• Xiamen (XMN): Airlines are monitoring the market; final pricing is to flight schedules with potential for rapid changes.

Ocean

• February saw mixed rate movements, with some extensions and selective reductions. However, General Rate Increases (GRIs) have been announced for March, with certain carriers implementing hikes.
• Overall vessel capacity is expected to rise by 24.1% once all new service loops are fully operational, with average vessel sizes increasing from 9,833 TEU to 11,332 TEU.
• Not all loops have a full roster of vessels, causing gaps in schedules.
• The traditional peak season has been delayed due to weaker-than-expected demand, notably affected by lower grape harvest exports.
• India has announced a series of shipping infrastructure initiatives, including plans for a domestically owned container carrier.

Ocean

•  Vessel capacity has significantly increased on the North Europe–U.S. East Coast route over the past two weeks. This surge is largely driven by the anticipation of U.S. steel and aluminum tariffs taking effect on March 12. The Mediterranean market remains strong, but no signs of overbooking are evident.
• Congestion continues at key Northern European ports, affecting overall efficiency. However, blank sailings have decreased in both North and South Europe, stabilising the schedule for many carriers.
• Some carriers have postponed the implementation of the March Peak Season Surcharge (PSS) to April, while others have applied it selectively.

USA

• Los Angeles/Long Beach: 4 vessels waiting to berth, with a 10-day rail dwell reported.
• Oakland: 6 vessels waiting, with a 10-day rail dwell reported.
• Seattle & Tacoma: 10 vessels waiting, with a 7-day rail dwell reported.
• Vancouver (Canada): 5 vessels waiting, with a 9-day rail dwell. Yard capacity at 90% full.
• New York/New Jersey: 5 vessels waiting, with a 5-day rail dwell. Yard capacity at 83%.
• Norfolk: 4 vessels waiting, with a 3-day rail dwell.
• Savannah: 5 vessels waiting, with a 3-day rail dwell.

Benelux

Belgium – Antwerp

• PSA 913: Yard utilisation remains high at 85-90%. Reefer utilisation stable at similar levels.
• PSA 869: Yard at 60-65% utilisation, with reefers unchanged at 55-60%.
• AGW: Antwerp Gateways yard utilisation remains high at 75-80%. Reefer levels reduced to 60-65%.

Netherlands – Rotterdam

• ECT: Yard remains highly utilised at 80-85%. Secondary modalities remain under pressure, with berth line-up seeing continued high utilisation.
• RWG: Yard utilisation increased to 80-85%, with yard protection measures implemented. Terminal continues operating at high productivity.
• Delta II: Ongoing labour dispute between terminal operators and unions, with strike actions and slowdowns possible. While operations continue, disruptions cannot be ruled out.

United Kingdom

• Logistics UK warns that the government’s rail reform plans must prioritise freight, ensuring fair access to the network to support economic growth and sustainability goals.
• Without strong protections, concerns remain that passenger rail priorities could eclipse freight, hindering the UK’s ability to meet its rail freight growth targets.
• Rail freight is seen as a key driver for emissions reduction, but there are concerns that infrastructure and policy decisions may not fully support this transition.

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.

February 10 (Monday): Malta

February 16 (Sunday): Lithuania

February 24 (Monday): Estonia

February 28 (Friday): Spain

March 1 (Saturday): Spain

March 3 (Monday): Bulgaria, Cyprus, Greece, Luxembourg

March 4 (Tuesday): Portugal

March 8 (Saturday): Germany

March 11 (Tuesday): Lithuania

March 15 (Saturday): Hungary

March 17 (Monday): Ireland (Eire)

March 19 (Wednesday): Austria, Malta, Spain

March 25 (Tuesday): Cyprus, Greece

March 31 (Monday): Malta, Spain

*Not in all regions