Zencargo Market Update: 26th September

China

Ocean

• • Container capacities on the main trade routes from China are set to decrease following Golden Week as carriers announce blank sailings. 
    • China’s Golden Week runs between October 1st to 7th and is a period where Chinese factories will be closed for the national holiday. 
    • Sea Intelligence has noted that in the past two years, blank sailings were used to keep schedules due to delays at congested ports. 
    • Carriers are now using blank sailings to balance supply and demand. Transpacific capacity will reduce by 22%-28% after Golden Week. This reduction is greater than 2019 levels which decreased by 15%-17%.
    • Capacity will also reduce by just under 20% on the Asia to North Europe route.
  • Equipment table (see below)

Air

Central China to USA and Europe 

• From SHA to both the USA and Europe, space is tight between 1st-7th October, due to the upcoming Chinese national holiday, Golden Week. Rates are likely to decrease during the 2nd half of the holiday. 
  • Rates will continue to decrease after 8th October.
• From NGB to Europe, rates have remained the same and the market is stable

North China to USA and Europe 

• From TSN to Europe, rates have decreased. However, rates have remained the same between TSN and the USA as compared to last week. 
  • Capacity is not as tight as expected and airlines are offering competitive rates to attract more bookings. 
• Rates have decreased from PEK to Europe and the USA. Space is still tight to both lanes. 
  • Due to hot weather and rain, carriers are taking on less volume and have even cancelled or rescheduled flights.

South China to USA and Europe 

• From CAN to Europe and the USA, the market is busy due to Golden Week and airlines have increased their rates for this week. 
• From SZX to Europe and the USA, rates have again increased to both trade lanes due to China’s national holiday. 
• From XMN to Europe and the USA, flights may be cancelled due to the national holiday. Rates remain the same as last week on both trade lanes.

USA

Ocean

• Average capacity between Asia to the US West Coast has fallen to its lowest since February over the past 4 weeks. 
  • An average of 275,000 TEU has left Asia for the US West Coast which is 50,000 TEU less than the peak in early August. 
  • Carriers are using blank sailings to balance supply and demand for space which is likely to slow down the decrease in spot rates.  
  • A total of 1.5m TEU from Asia to the US West Coast was blanked over the last 12 weeks. 

Benelux

Ocean

• The Port of Rotterdam Authority has awarded Swietelsky Rail Benelux a contract to construct a new pipeline strip for the movement of hydrogen  and CO2.
  • Rotterdam has an extensive network of over 1,500 kilometres of pipelines to transport crude oil, chemicals and industrial gases.
  • The newly awarded pipeline project is planned to be open access for any company looking to consume or supply hydrogen. 
  • The Port of Rotterdam is looking to reduce its carbon emissions by 55% by 2030 and reach net zero by 2050. 
  • Their ongoing projects will combine hydrogen and biofuel production to reduce carbon emissions by 23 million tonnes. 

UK and Rest of Europe

Ocean

• Carriers have found it easier to navigate the disruption around the second industrial action at Felixstowe. 
  • Carriers have advanced ship calls and delayed others on the eve of the eight day strike at Felixstowe.Other imports will be diverted to other UK or European ports. 
  • Due to less congestion from other North European ports, shipping lines have been able to better navigate around the second Felixstowe strikes compared to the first. 
  • As other North European ports are less busy, they are able to accommodate extra arrivals diverted from Felixstowe. 

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 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