Transport Update 7th July 2021

Welcome to the Zencargo weekly freight market update – the latest news from our freight and procurement teams on the real experience of shippers.

This week: The race to add capacity before rates drop

• Ocean

• Air

• Road

Who’s winning the race to add new capacity to the market?

Source: Alphaliner

A new report from Alphaliner highlights the rush from liner operators to add more capacity during this era of peak rates. A comparison of the top 12 carriers’ capacity between January 1 and today identifies five leaders in adding capacity.

• MSC and Wan Hai have been the most successful buyers of tonnage on the second market
• Zim has been active in the charter market finding extra tonnage for its new Transpacific services.
• HMM and Evergreen happened to have a lot of new building deliveries planned for the first half of this year, luckily.

MSC has been the fastest growing operator this year in terms of actual slots (+177,691 teu) as the Geneva-based carrier took delivery of two more 23,656 teu ships. Meanwhile, Maersk’s capacity growth in H1 still remains limited to 0.5% of its current size, putting MSC on course to become the new number one in liner shipping.

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Ocean

Asia

US market

• Space and rate situation out of China is critical this week as worsening congestion and capacity issues add to backlogs of ocean freight cargo and increase the volumes of ocean to air freight conversions.
• Only highest paying cargo is guaranteed to make it on to a flight
• Some converted passenger flights are being changed to domestic flights to accommodate summer holiday travel
• Spot rates available for heavy/dense cargo as well as volume cargo.
• For all airports – rates and space must be checked on a case by case basis.

EU market (base airport like FRA/AMS/LUX, etc)

• Space and rate situation out of China is critical this week as worsening congestion and capacity issues add to backlogs of ocean freight cargo and increase the volumes of ocean to air freight conversions.
• Only highest paying cargo is guaranteed to make it on to a flight
• Some converted passenger flights are being changed to domestic flights to accommodate summer holiday travel
• Rates and space must be checked on a case by case basis.
• Spot rates available for heavy/dense cargo as well as volume cargo.

UK market

• Space and rate situation out of China is critical this week as worsening congestion and capacity issues add to backlogs of ocean freight cargo and increase the volumes of ocean to air freight conversions.
• Only highest paying cargo is guaranteed to make it on to a flight
• Some converted passenger flights are being changed to domestic flights to accommodate summer holiday travel
• There are direct flights with CA/BA, AIR-AIR by SQ and normal air-truck service. Space using deferred carriers is fully booked.
• Rates and space must be checked on a case by case basis.
• Spot rates available for heavy/dense cargo as well as volume cargo.

Americas

• Rates have increased 20-30% in the last week into UK, Europe and Asia
• Space remains constricted due to reduced capacity.
• There are still backlogs at the handling sheds at main airports, resulting in long queues when collecting/delivering cargo. This will only get worse when the new screening regulations come into play on 1st July.
• US hauliers are currently over capacity and over booked causing more delays.

Europe

• Rates into North America have increased this week, while rates into Asia remain stable.
• Capacity to most regions remains severely restricted

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates are fluctuating in and out of Italy, but remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

Border situations have improved considerably with clearances running smoothly.

The route ahead

The information that is available in the Weekly Market Update comes from a variety of online sources, partners and our own teams. Click below to learn more about how Zencargo can help make your supply chain your competitive advantage.

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