Zencargo Market Update: 31st January

Asia → North America (Transpacific Eastbound)

Rates

• Rates have remained the same level as last week. 
  • From Asia to the West Coast, rates range from $9,500 to $16,000 per 40ft.
  • From Asia to the East Coast, rates range from $11,600 to $16,500 per 40ft.

Capacity

• Transpacific carriers deployed a further 1.3m TEU of capacity last year compared to 2020, an increase of 31.2% YoY. This was due to:
  • Carriers diverting vessels from other routes to the Transpacific trade routes.
  • Capacity on dedicated Intra-Asian loops being reduced by 10.8% in 2021.
  • An increase in demand from the US also leading to an increase in capacity on this route.
• Israeli carrier, Zim, is considering its relationship with the 2M alliance.
  • Negotiations with Maersk and MSC should be finalised next week and come into effect in April. 
  • The agreement will see Zim extend its cooperation with the 2M on the Asia to US East and Gulf Coast trades.
  • However, the 2M-Zim cooperation on Asia-West Coast services will come to an end. It will be replaced by a Zim standalone pendulum service connecting the Mediterranean, Asia, and NA Pacific North-West. 

Ports

• 98 vessels are waiting to berth at the ports of LA and Long Beach. 
• Evergreen has released a service update:
  • Ships will be waiting for a berth for 34 to 35 days at the Port of LA.
  • Ships will be waiting for a berth for 8 days at New York.
  • It is expected that ships will be waiting for berth in about 6 – 10 days at Charleston. 
  • It is expected that ships will be waiting for berth in about 2 – 3 days at Savannah. 

Asia → Europe (Far East Westbound)

Rates

• For the first half of February, there is not much change in rates expected. 
• Carriers are mostly extending rates until the end of February.
• From Asia to the UK, rates are ranging from $14,500 to $16,000 per 40ft amongst the prepaid market and contracts. 
• From Asia to Europe, the rates are from just under $14,000 to $14,500 per 40ft.

Capacity

• Carriers have adjusted capacity accordingly as factories are expected to close for Chinese New Year. 
• Capacity has increased by 10% YoY on the Asia-Europe route.  
  • This is due to the replacement of smaller vessels with bigger vessels. 
  • There has also been a capacity shift as some carriers have taken capacity out of less profitable trades. 

Equipment

• See Below

Ports

• The Port of Hamburg has completed its expansion of the waterway along the Elbe River, connecting Hamburg to the North Sea at Cuxhaven.
  • • The port will be able to handle larger vessels, improve the management of ships along the river and enhance safety during the passage between the sea and the port. This is a major enhancement of the port’s capabilities.

  Carriers	POL	20GP	40GP	40HQ
  HPL	NINGBO	Normal	Normal	Shortage
  	SHANGHAI	Normal	Normal	Shortage
  	YANTIAN	Normal	Normal	Shortage
  	SHEKOU	Normal	Normal	Shortage
  MSK	QINGDAO	Normal	Normal	Normal
  	SHANGHAI	Normal	Normal	Normal
  	NINGBO	Normal	Normal	Normal
  	Nanjing	Normal	Normal	Normal
  	Xiamen	Normal	Normal	Normal
  	YANTIAN	Normal	Normal	Normal
  	SHEKOU	Normal	Normal	Normal
  	NANSHA	Normal	Normal	Normal
  	HONGKONG	Normal	Normal	Normal
  	SHANTOU	Normal	Normal	Normal
  ONE	YANTIAN	Normal	Normal	Shortage
  	SHEKOU	Normal	Normal	Shortage
  	XINGANG	Normal	Normal	Shortage
  	QINGDAO	Normal	Normal	Shortage
  	SHANGHAI	Normal	Normal	Shortage
  	NINGBO	Normal	Normal	Shortage
  ZIM	XIANGANG	Normal	Normal	Normal
  	NINGBO	Normal	Normal	Normal
  	SHANGHAI	Normal	Normal	Normal
  	YANTIAN	Normal	Shortage	Shortage
  	SHEKOU	Normal	Shortage	Shortage
  HMM	SHANGHAI	Normal	Normal	Normal
  	NINGBO	Normal	Normal	Normal
  	YANTIAN	Normal	Shortage	Normal
  	SHEKOU	Normal	Normal	Normal
  MSC	SHANGHAI	Normal	Normal	Normal
  	NINGBO	Normal	Normal	Normal
  	YANTIAN	Normal	Normal	Normal
  	SHEKOU	Normal	Normal	Normal
  EMC	YANTIAN	Normal	Normal	Shortage
  	SHEKOU	Shortage	Shortage	Shortage
  	NINGBO	Shortage	Shortage	Shortage
  	SHANGHAI	Shortage	Shortage	Shortage
  	QINGDAO	Shortage	Normal	Normal
  OOCL	YANTIAN	Shortage	Shortage	Shortage
  	SHANGHAI	Normal	Normal	Shortage
  	NINGBO	Normal	Normal	Shortage
  CMA	QINGDAO	Normal	Normal	Shortage
  	SHANGHAI	Normal	Normal	Shortage
  	NINGBO	Normal	Normal	Shortage
  	YANTIAN	Normal	Normal	Shortage
  	SHEKOU	Normal	Normal	Shortage
  COSCO	YANTIAN	Normal	Normal	Shortage
  	SHEKOU	Normal	Normal	Shortage
  	SHANGHAI	Normal	Normal	Shortage
  	NINGBO	Normal	Normal	Shortage
  	QINGDAO	Normal	Normal	Shortage
  	DALIAN	Normal	Normal	Shortage
  	XINGANG	Normal	Normal	Shortage
  YML	YANTIAN	Shortage	Normal	Normal
  	SHEKOU	Normal	Normal	Normal

Air

Asia 

• Hong Kong air cargo volumes increase by 12.5% in 2021.
  • • Cargo throughput in 2021 at Hong Kong International Airport rose by 12.5% YoY to 5 million tonnes, exceeding the 4.8 million tonnes recorded in 2019. 
    • The number of cargo flights surged to a record of 82,935, a YoY increase of 19.8%. 
    • Monthly cargo throughput also reached a new monthly high in November 2021. 
    • Despite the emergence of the Omicron variant, peak cargo demand in November 2021 carried through to December.
    • In December 2021, HK International Airport handled 477,000 tonnes of cargo, representing YoY growth of 8.6%. 

Americas

• The Federal Aviation Administration (FAA) has given clearance to telecom companies, Verizon and AT&T, to turn on additional 5G towers at some of the key airports in the country. 
  • This decision came after consultations to ensure that these towers do not interfere with aeroplanes landing at the airport during poor weather conditions. 
  • The wireless firms also provided more precise data on the location of wireless transmitters. 
• More than 1,400 US flights have been cancelled by the winter storm in the North-East. 
  • More than 1,400 US flights were cancelled on Sunday after a winter storm prompted several states to declare emergencies. 
  • Another 1,774 US related flights were also delayed. 
  • LaGuardia Airport and John F. Kennedy International Airport in New York City and Boston Logan International Airport were among the hardest hit by delays and cancellations. 

Europe/UK

• Lufthansa Cargo’s handling operation at its Frankfurt hub has been ‘significantly’ affected by Omicron infections amongst staff.
  • Transit shipments from the US, Canada and Europe, including Germany will be affected by a transit embargo as it looks to stabilise operations at Frankfurt. 
  • Around 15% of volumes handled at its Frankfurt facility will be affected by the embargo. 
  • However, direct deliveries as well as outbound deliveries in Frankfurt are still possible. 
  • Certain product groups and urgent freight can also be continued to fly into the airport. 

Road and Rail