Zencargo Market Update: 5th September

China

Ocean

• Typhoon Hinnamor has forced the ports of Shanghai, Ningbo and Busan to close; further disrupting shipping schedules from Asia.
  • Shanghai’s container terminals and equipment yards were closed at 4pm on Sunday “until further notice”.
  • The typhoon may impact vessel schedules which are already under pressure due to blank sailings. 
  • The typhoon is predicted to head to Busan, South Korea, and is expected to be the most powerful typhoon in history, spanning from Seoul to Busan. 
• China’s Golden Week will take place from 1st October to 7th October.
  • This is a national holiday in China and workers have traditionally taken the full week as leave, bringing production to a near stand-still
  • Carriers often introduce blank sailings during this time as demand drops during the national holiday.

Air

Central China to USA and Europe 

• Also due to the Typhoon Hinnamor in China, flights have been cancelled and rates have increased from SHA to the EU. Conversely, rates from SHA to the USA have dropped.
• PVG Airport cancelled most of their flights yesterday due to the typhoon, with normal operations expected to resume on Tuesday. 
• Rates from NGB to Europe have remained the same as last week and have decreased to the USA. The market is stable to both destinations compared to last week.

North China to USA and Europe 

• From TSN to Europe, rates have decreased. However, rates have remained the same between TSN and the USA compared to last week. 
  • Airlines are offering competitive rates to increase bookings on their carriers. 
• Rates have decreased from PEK to Europe and the USA. Space is still tight to both lanes. 
  • Hot weather conditions and rain remain an issue, causing flights to be cancelled and rescheduled.

South China to USA and Europe 

• From CAN to the USA, rates have decreased as the market is quieter. From CAN to Europe and the USA, the market is cold so discounts may be negotiated. 
• From SZX to Europe and the USA, rates are stable. 
• From XMN to Europe rates have decreased but they have remained stable to the USA. 

USA

Ocean

• Labour negotiations for 22,000 dock workers on the US West Coast may lead to disruptions to trade. 
  • The labour contract for the US West Coast expired on 1st July and last Thursday was the beginning of the third month since the expiration of the contract.
  • Talks around automated ports have been the centre of the negotiations as the dockworker’s union have declared that automated ports would decrease jobs for workers and ports will be less productive. 
  • As a result, negotiations for the new contract have stalled. 
  • US President Joe Biden has met with the negotiating parties in order to encourage smooth talks to prevent shipping disruptions. 

Benelux

Ocean

• At the terminals at Antwerp, labour is at a good level as the summer holiday period is over. Yard utilisation is high but manageable. Reefer plug usage on the quays continues to be high. 
  • The designated area for long dwelling imports has a constant feed with increasing stacks.
• The Port of Rotterdam is experiencing faster turnaround of vessels as labour has increased to the end of the school holidays.
• Yard level at European Container Terminal (ECT) is manageable but reefers remain critical. 
  • The ECT terminal is seeing improvements in the long dwell times for transshipment and import cargo. 
  • Acceptance of empty containers to the terminal is still limited
• Yard utilisation at Rotterdam World Gateway (RWG) is high and as a yard protection measure, RWG is not accepting empty container deliveries until further notice.
• Due to low water levels in the Rhine River, both terminals (ECT and RWG) are experiencing a shift from barge to truck capacity for import and export delivery and pick-up.

UK and Rest of Europe

Ocean

• The eight day strike action at Felixstowe has resulted in an increase in the wait time for containers at the port.
  • Data from FourKites shows an increase of 82% in 5 days for wait times. 
  • On 21st August, export shipments at the Port of Felixstowe waited at terminals for 5.2 days on average. 
  • On 26th August, this had risen to 9.4 days.
  • The increase in wait time has impacted the rest of the supply chain including hauliers who’s operations have been impacted by the strike.

Road/Rail

• Strike action is due to take place on 15th and 17th September and 26th and 27th September. 
  • Two UK trade unions, The Rail, Maritime and Transport (RMT) and the Transport Salaried Staffs Association (TSSA) have called a fresh round of strikes later this month. 
  • Over 40,000 RMT members are expected to take strike action over pay rises not matching the high inflation rate and cost of living. 
  • This strike action combined with port strike action will cause impact and delays in the supply chain.

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.

September 5th – Luxembourg*

September 6th – Bulgaria, Spain*

September 8th – Malta, Spain*

September 15th – Slovakia, Spain*

September 17th – Spain*

September 20th – Germany*

September 21st – Malta 

September 22nd – Bulgaria 

September 24th – Austria*

September 27th – Belgium*

September 29th – Czech Republic

October 1st – Cyprus

October 3rd – Germany

October 5th – Portugal

October 10th – Austria

October 12th – Spain

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

October 31st – Germany*, Hungary, Ireland, Slovenia

*Not in all regions