Transport Update 6th December

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: Schedule reliability among global container lines remains low

• Ocean

• Air

• Road

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In focus: Schedule reliability among global container lines remains low

New data released by Sea-Intelligence shows that schedule reliability remains low for containerships with only 34.4% of containerships on schedule during October 2021. This remains at the bottom of the range as previous Sea-Intelligence reports have shown schedule reliability to be between 34 and 40% for all of 2021. On a year-on-year basis, schedule reliability in October 2021 was down by 18% versus 2020.

The only ‘positive’ is that schedule reliability is not plummeting further as there was a slight improvement of just four tenths of a percentage point in October versus September. While ports and shippers are reporting progress on reducing congestion, the expectation is that it will be at least 2022 before liner companies will experience significant improvements in their operations.

Ocean

Asia 

 Central China to USA and Europe

• The US and EU markets are still short of space.

• • Rates are increasing for both destinations from Shanghai. 
  • Covid restrictions are still in place at PVG Airport.
    • Over 40% of cargo flights are cancelled
    • Terminals are at 50% in terms of labour resources
  • Rates to the USA and Europe have increased again.

• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

North China to USA and Europe

• Rates have increased between TSN Airport to the USA and Europe. 

• KE/OZ can provide space for urgent cargo to both destinations. 

• Rates from PEK Airport have increased compared to last week to the USA and Europe. 
  • Space is getting tight due to peak season and Covid testing. 
• It is advisable to confirm rates and space 3-4 days in advance. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

South China to USA and Europe

• The air rate has increased significantly from CAN airport to the USA and Europe and space is relatively limited. 
• At SZX Airport, rates have decreased to the USA; however, they have remained stable and high for Europe. 
• Space to the USA and Europe from XMN Airport is tight. Rates have increased for both destinations again. . 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

Americas

• Dallas/Fort Worth (DFW) International Airport is set for a busy year as cargo volumes are just short of the 1m tonne mark. 
  • However, 6 years ago, DFW have set a strategy in place by using ground handling data to develop perishables facilities and investing in equipment and software.
  • They invested in software to speed up the processing of trucks with a vehicle booking system. 
  • The result of this strategy, has helped to deal with cargo volumes this year.
  • DFW is now looking to develop new cargo facilities to provide space for high volumes- 15,000 square metres of warehouse space and 4,000 square metres of office space.
  • E-Commerce is also an area they are looking to grow in their business strategy. 

Europe/UK

• Air France Cargo and Delta Cargo are expected to see delays at Charles de Gaulle Airport following a strike.
  • Air France has warned that several Air France staff unions would strike from midnight on Friday until 6am today, but cargo would be affected for another 24 hours. 
  • The airline announced that it was cancelling all flights, including freighters, from Charles de Gaulle to Hong Kong until 26th March.

Road and Rail

REMINDER: Prepare for full customs controls from 1st January 2022

From the 1st January 2022, the current easements on full customs controls of goods moving into the UK will be removed, and customs checks will be introduced. Prior notification of agri-food imports will be required, but how soon before shipment is needed will differ as time limits for this will vary depending on transport route.

The temporary easement for the requirement to hold supplier declarations (where required) prior to issuing statements on origin for export to the EU will also cease for businesses using the EU-UK trade agreement. Suppliers’ declarations will likely be necessary where you purchase goods for onward sale unaltered, or you need evidence of the originating status of production inputs to calculate the origin of your goods.

 

Frustration over restrictive measures causing severe Austrian traffic jams

The International Road Transport Union (IRU) and 12 European road haulage associations have renewed their calls for the EC to “stop Austria’s illegal anti-transit measures”, which have escalated in recent weeks in the Tyrol region and led to huge traffic jams.

According to the IRU, Austrian restrictions on the number of trucks that can transit the Tyrol region, which links the Brenner Pass on the Italy-Austria border with Germany, is resulting in severe congestion. Queues of up to 70km have recently become a regular occurrence in Bavaria. The construction of the Brenner Tunnel is not scheduled to be completed until 2033 and the only other alternative for intra-European overland freight is rail, which remains severely constrained by capacity.

 

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 6th – Spain, Finland

December 7th – Italy (Milan Only)

December 8th – Austria, Italy, Portugal, Malta, Macedonia, Spain

December 13th – Malta

December 24th – Bulgaria, Czechia, Estonia, Latvia, Lithuania, Slovakia

December 25th – Austria, Belgium, Bulgaria, Bosnia & Herzegovina, Belarus, Switzerland, Cyprus, Germany, Denmark, Spain, Estonia, France, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Moldova, Malta, Norway, Netherland, Portugal, Poland, Romania, Sweden, Slovakia, Romania, Slovenia, Ukraine

December 26th –  Austria, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Norway, Netherlands, Poland, Romania, Sweden, Slovakia, Slovenia

December 27th – Great Britain

December 28th – Bulgaria, Great Britain

December 31st – Estonia, Latvia, Russia,

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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