Zencargo Market Update: 11th April

China

Ocean

• A new direct shipping route between Tianjin and European ports has opened.
  • Twelve 24,000 TEU container ships will operate on the new route which connects Tianjin with major European ports such as Hamburg, Rotterdam and Antwerp.  
  • Local media has reported that the primary objective of this shipping route is to provide an efficient and convenient mode of transportation for the export of China-made mechanical and electrical equipment and daily necessities. 
  • Located in Northern China, Tianjin Port was the 8th largest port in terms of container throughput last year. 

Road/Rail

• Alataw Pass has registered a 10.35% increase year on year on freight train journeys between China and Europe. 
  • The Alataw Pass is a land port in northwest China’s Xinjiang Uygur Autonomous Region.
  • China Railway Urumqi Group claims this is attributed to the improvement in customs clearance efficiency.
  • China-Europe freight trains that pass through the Alataw Pass account for over 30 % of such trains in China.

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have decreased since last week. 
  • It is anticipated however that rates to Europe and the US will increase for the weekend. 
• From NGB to Europe and the US, rates have decreased since last week. 
  • Final rate is offered on a case by case basis.

North China to USA and Europe 

• From TSN to Europe and the US,  rates have risen this week and continue to fluctuate. 
  • We recommend booking 4 -5 days prior to the cargo ready date for shipments to Europe.
  • We recommend booking 6 -7 days prior to the cargo ready date for shipments to the US.
  • For Europe, the main services on this lane include Air China, Lufthansa and Singapore Airlines. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
  • For the US,  the main services on this lane include Japan Airlines, All Nippon Airways and Cathay Pacific. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
• From PEK to Europe and the US, rates have increased as the market has been hot. 
  • We recommend booking 4 -5 days prior to the cargo ready date for shipments to Europe.
  • We recommend booking 6 -7 days prior to the cargo ready date for shipments to the US.
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe and the US, rates have remained stable this week. 
• From CKG to Europe have remained stable, while rates to the US have increased slightly since last week. 

South China to USA and Europe 

• From  CAN to Europe and the USA,  rates have decreased this week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From SZX  to Europe have remained stable, while rates to the US have increased slightly since last week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From XMN to Europe and the USA,  rates have decreased this week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.

USA

Ocean

• The Ports of Los Angeles and Long Beach were forced to shut down last Thursday due to a worker shortage. 
  • The shut down is reported to be due to protracted contract negotiations between the Pacific Maritime Association (PMA), which represents employers and the International Longshore and Warehouse Union (ILWU).
  • Operations have resumed as of Saturday, but the latest action demonstrates the fragility of the relationship between the two parties during the ongoing negotiations.
• The Port of Virginia is investing $18 million to upgrade its facilities. 
  • The plans include expanding the capacity at the Virginia Inland Port (VIP) near Front Royal and the Richmond Marine Terminal (RMT).
  • The expansion is aimed at driving efficiency and providing room to grow with a smaller carbon footprint. 
  • The projects are part of a larger, $1.4 billion gateway investment program that seeks to expand and modernise the port’s functions and long-term competitiveness.
• A new bill has been introduced by US lawmakers aimed at cracking down on Chinese influence over America’s supply chains. 
  • If passed,  the bill will prohibit US ports from using Chinese state-sponsored software such as LOGINK due to concerns about Chinese access to data collected and stored on the platform. 
  • At least 24 ports globally have cooperation agreements with LOGINK, including nine in Europe.

Sweden

Ocean

• The Port of Gothenburg and Inter Terminals Sweden are collaborating to introduce methanol bunkering services in the port by the end of 2023.
  • The Port of Gothenburg aims to reduce shipping emissions by 70% within the port area by 2030.

UK

Ocean

• The first winners of the Freight Innovation Fund (FIF) have been announced.
  • The FIF is part of the UK government’s Future of Freight plan, which sets out the long term vision for the UK freight sector. 
  • Some of the projects which secured funding included remote island drones used in the Orkney Islands and lightweight 4-wheeled vehicles for deliveries. 

Road/Rail

• The UK government has pledged £47.5 million to improve safety of 27 of the country’s most dangerous roads.
  • The investment will prevent over 750 fatal and serious injuries over the next 20 years.
  • The programme will reduce the risk of collisions, in turn reducing congestion, journey times and emissions.

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.

April 14 – Bulgaria, Cyprus, Greece, Romania

April 15 – Bulgaria, Cyprus*

April 16 – Bulgaria, Cyprus*, Greece, Romania

April 17 – Bulgaria, Cyprus, Greece, Romania

April 18 – Cyprus*

April 21 – Spain*

April 22 – Spain*

April 24 – Spain*

April 25 – Italy, Portugal

April 27 – Netherlands, Slovenia

April 28 – Gibraltar

April 29 – Russia

April 30 – Russia

May 1 – Albania, Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina (FBiH), Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey and Alderney, Holy See (Vatican City), Hungary, Iceland, Ireland (Eire), Isle of Man, Italy, Jersey, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, North Cyprus, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain, Svalbard and Jan Mayen, Sweden, Switzerland*, Transdniestria (PMR), Turkey, UK (United Kingdom), Åland (Ahvenanmaa)

May 2 – Bosnia and Herzegovina (FBiH), Montenegro, Serbia, Slovenia, Spain*, Transdniestria (PMR)

May 3 – Poland

May 4 – Austria*, Latvia

May 5 – Denmark, Faroe Islands, Greenland (Kalaallit Nunaat), Latvia, Netherlands*

May 6 – Bulgaria, Russia

May 7 – Lithuania, Russia

May 8 – Belarus, Belgium*, Bulgaria, Czech Republic, France, Gibraltar, Guernsey and Alderney, Isle of Man, Jersey, Moldova, Russia, Saint Helena, Slovakia, Transdniestria (PMR), UK (United Kingdom)

May 9 – Belarus, Bosnia and Herzegovina (FBiH)*, Guernsey and Alderney, Jersey, Kosovo, Luxembourg, Moldova, Russia, Transdniestria (PMR)

*Not in all regions