Zencargo Market Update: 10th October

China

Ocean

• Chinese markets are due to reopen on 10th October after taking a break for the Golden Week holiday. 
  • A rise in Covid-19 cases in the country is raising concerns due to China’s zero-Covid policy. 
  • China is home to the world’s largest ports and another lockdown similar to the one in Shanghai earlier this year will no doubt disrupt supply chains. 
  • If another lockdown was to happen in cities with major ports, factory production, trucking services and port operations would be restricted. 
• Equipment table below

Air

Central China to USA and Europe 

• Space is tighter compared to last week from SHA to both the USA and Europe due to the end of Golden Week. 
  • Rates have increased significantly to both lanes compared to last week. 
• Rates have increased from NGB to USA and Europe this week.

North China to USA and Europe 

• The air market in North China is busier due to the end of the national Golden Week holiday.
  • Rates have increased from TSN to Europe and the USA. 
  • Rates have also increased from PEK to Europe and the USA.

South China to USA and Europe 

• Compared to last week, space is tighter between CAN and Europe and the USA which has caused rates to increase. 
• Rates remain the same from SZX to Europe and the USA and also from XMN to Europe and the USA.

USA

Ocean

• Ocean carriers may decrease capacity on the Transpacific lane, especially from Asia to the US West Coast to balance supply and demand and keep rates stable. 
  • According to the Freightos Baltic Index, the spot rate for a 40ft container has fallen by 20% last week, dropping by two-thirds since May. 
  • The spot market continues to fall so we suggest that you speak with us or your freight forwarding partner to understand what the best rates and space is for your company. 
• The International Longshore and Warehouse Union and the Pacific Maritime Association are still negotiating a new contract for 22,000 dockworkers on the US West Coast. 
  • There has been a dispute around the assignment of work at a terminal in Seattle which has caused a delay in discussions. 
  • Jurisdiction as to what sort of jobs the union’s members get to perform still remains as a point of contention between the ILWU and the terminal in Seattle. 

Benelux

Ocean

• At the PSA terminal at the Port of Antwerp in Belgium, yard utilisation is at a good operational level. 
  • Labour availability is good but reefer plugs and empty storage areas are highly utilised.
• At the ECT terminals at the Port of Rotterdam in the Netherlands, yard utilisation levels are moderate but increasing.
  • Labour availability is sufficient but the lack of quay cranes combined with increasing yard utilisation levels may cause operational restrictions. 
  • Dwell times are also increasing and off-yard storage for long dwelling imports is fully utilised at 100%. 
  • Berths are under pressure with new services pushing into the terminal.
• At the Rotterdam World Gateway in the Netherlands, yard utilisation is high and reefer plugs are limited. 
  • Labour availability is sufficient but operational restrictions are still expected. 
  • Feeders and barges are operating normally. 

UK and Rest of Europe

Ocean

• The Port of Liverpool has announced that they will be making redundancies due to a deterioration in container volumes. 
  • On 3rd October, dock workers took part in a two-week strike due to a dispute of pay.
  • They will again walk out from 11th October to 17th October. This time they will be joined by senior control room operators. The total number of workers participating in the strike action will total to over 600 people. 
  • Peel Ports announced that they had offered workers a 10.2% increase in basic pay however, with the cost of living increasing, Unite, the worker’s union, has pushed for a higher offer. 
  • The announcement to cut jobs from Peel Ports is likely to strain relationships even further. 

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.

October 10th – Austria

October 12th – Spain

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

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

November 1st – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

November 2nd – Belgium*, Lithuania

November 5th – Finland, Sweden

November 9th – Spain 

November 11th – Austria, Belgium, France, Poland

November 15th – Austria, Belgium

November 16th – Germany

November 17th – Czech Republic, Slovakia 

November 18th – Croatia, Latvia 

*Not in all regions