Zencargo Market Update: 11th July

China

Ocean

• Vessel utilisation has dropped for the first time in 2 years resulting in carriers lowering rates to fill vessels.
• Container trade statistics show that volumes were down by 3% from this year to last year.
  • This indicates that levels are hitting those seen pre-pandemic.
• Peak season, expected in late July and August, could see worsening congestion leading to potential delayed or blank sailings.
  • This will put pressure on capacity and therefore, rates are likely to  increase.
• Transit times are improving from China to West Coast ports from 34 to 20 days.
• The average waiting time for vessels to berth at Shanghai is up 12 to 24 hours.
• Most terminals have severe congestion at Ningo due to monsoons which may also result in port closures.
• There is potential for longer berthing times at Yantian for vessels arriving from high-risk ports due to covid testing requirements.
• Qingdao has been impacted by fog and bad weather resulting in an average waiting time of 48 to 96 hours.

Air

Central China to USA and Europe

• Rates are stable compared to last week.
  • There has been a decrease in rates for flights from Central China to USA.

North China to USA and Europe

• TSN is expecting to have a high demand throughout July.
  • Due to the high amount of cargo entering the airport, there is already a large sum of cargo waiting in warehouses at the terminal.
  • Airlines are requesting that trucks are ready for collection and have advised that the handling process will take longer before the flight departures.
  • Due to covid outbreaks in the Tianjin area, terminal warehouses will be running on low staff, resulting in longer handling times.
• Although rates stay the same from last week, PEK has limited space and there are risks that flights to LHR may be changed or rescheduled.
• There is a 10 day quarantine for all air imports to PEK airport starting this week.
• TAO has a lot of space remaining for this week with the rate to Europe staying the same as last week.
  • JD direct flights to LHR have been suspended and the resume date is still uncertain.
• The capacity at CKG airport is still stable but the rate has slightly increased this week.

South China to USA and Europe

• Rates have increased for flights from SZX to Europe and there is a high demand for volume resulting in limited space. 
  • Rates may be stable for the next one to two weeks, but this is subject to change as the demand is slowly increasing.
• Flights to USA from SZX have not seen as much of an increase in demand, resulting in stable space and rates.

Benelux

Ocean

• As the holiday season has started, ports in the Netherlands have already started to see labour-related impacts.
  • Delays are being rectified by additional holiday workers scheduled to start work next week.
• Congestion continues at Antwerp and Rotterdam. 
  • Rotterdam terminal is facing long dwell times and limited yard storage.

UK and Rest of Europe

Ocean

• Vessels have a high utilisation rate leading to a shortage of space and increased rates.
  • As peak season hits at the end of July, it is expected that it will become even more difficult to get space and rates will increase further.
• Labour disputes have led to delays and congestion at North Continental ports in Europe which could potentially take a couple of months to clear.
• Space is tight, and it is recommended to book a minimum of 4 weeks in advance.
• There are equipment shortages in Spain and Portugal leading to high rates.
• Southampton Port has had a reduction in labour resulting in longer handling times.

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.

July 11th – TR

July 12th – Northern Ireland, TR

July 13th – ME, TR

July 14th – FR, ME

July 21st – BE

*Not in all regions