Transport Update 22nd November

Welcome to the Zencargo weekly freight market update – the latest news from our freight and procurement teams on the real experience of shippers.

This week: India’s container shipping market improves despite tranship fees on the East Coast

• Ocean

• Air

• Road

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In focus: India’s container shipping market improves despite tranship fees on the East Coast

Shipping lines have been taking empties from the east coast port of Kolkata to west coast ports, rather than transferring cargo from one ship to another at delay stricken transhipment hubs such as Colombo or Singapore.

As a result, east coast shippers have had to pay $1,500 to move cargo cross-country where there is more capacity available.

Despite this, the container shipping market in this area appears to be ‘cooling’ as the situation for exports to North America and Europe has improved in terms of freight rates and bookings.

Ocean

Asia 

Central China to USA and Europe

• Coronavirus measures at PVG Airport are still in place. 
  • 40% of cargo flights have not resumed.
  • Terminals are at 50% in terms of manpower. 
  • Rates to the US from PVG Airport keep increasing. 
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 
• Rates have increased from Ningbo to the US. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

North China to USA and Europe

• Rates have increased between TSN Airport to the USA and Europe. Customers should expect higher rates and longer transit times on this route. 

• However, rates have decreased from Peking Airport for both regions. 
  • Due to the winter season, airlines have rescheduled or cancelled their flights due to bad weather. 
  • A new COVID-19 policy control policy was introduced last week which requires lorry drivers to provide a negative COVID-19 test before entering Beijing. 
  • On 16th November, United Airlines reopened the lane to ORD Airport. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

South China to USA and Europe

• The air rate has increased significantly from CAN airport to the USA and Europe and space is relatively limited. 
• At SZX Airport, rates have decreased to the USA; however, they have remained stable and high for Europe. 
• Space to the USA and Europe from XMN Airport is tight. However, rates remained the same as last week for both regions. 
• Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

Americas

• Congestion at US airports continues to worsen. 
• New York’s JFK Airport is seeing delays of up to two weeks to recover cargo. 
  • China Airlines and China Cargo Airlines, which are handled by the World Freight Service (WFS), are seeing delays of nine to 19 days for cargo recovery. Labour shortages are a main factor behind this congestion. 
  • Emirates, Etihad and Kalitta Air, also handled by WFS, are reporting delays of three to four days. 
  • Boutique handler, MSN, has announced delays of one to two weeks. 
  • Lufthansa Cargo is also struggling at the airport. 
  • JFK has zero warehouse availability to move imports off the airport grounds.
• Los Angeles Airport has also reported severe delays. 
  • China Eastern’s cargo is facing pick-up delays of up to 15 days.
  • LAX Airport is also suffering from a lack of warehouse space. 
• Alliance and Swissport in Atlanta are seeing a few days’ worth of delays.
• Miami and Chicago O’Hare Airport are clear for all handlers.

Europe/UK

• French transportation and shipping company CMA CGM has four A350F freighter aircrafts from Airbus. 
  • The cargo carrier will now have a total Airbus fleet of nine aircraft including five A330-200F. 
• The new AE350F will feature a large main deck for cargo and a fuselage length optimised for cargo operations.
• This carrier could offer an 11% larger freight volume compared to the Boeing 777F.

Road

European Road Freight market to grow by 8.6% in 2021

Ti’s new market forecast data reveals that the European road freight market grew by 11.1% in the first half of 2021, and is projected to be worth €352.39bn at the end of 2021, 2.2% larger than 2019’s pre-pandemic peak. This expansion will continue over the next 5 years, with Ti’s new data projecting the market will expand at a 4.3% CAGR through to 2025.

Driver and semiconductor shortages contribute to fall in HGV registrations in third quarter

New heavy goods vehicle (HGV) registrations in the UK declined by 8.4% in the third quarter of 2021, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). The SMMT attributed the decline in part to the shortage of HGV drivers and falling production levels due to semi-conductor shortages. The decrease saw 7,715 trucks registered, 704 fewer than the Q3 2020 total, when registrations were taking place against the volatile backdrop of the Covid-19 pandemic.

Spanish truck drivers announce three-day strike ahead of Christmas

Spain’s National Road Transportation Committee (CNTC) have announced a three-day strike, between December 20th and 22nd, to protest what it calls the government’s failure to address a crisis in the sector. The CNTC – which represents freight truck drivers in Spain – accused the administration of “neglect,” arguing that “all reasonable channels of negotiation have been exhausted.”  If the strike is not called off, it could negatively affect the supply chain ahead of Christmas – key days for business, when more is sold than at any other time of the year. The last national strike from the sector took place in June 2008, at the beginning of the financial crisis, and led to massive bottlenecks and fuel shortages.

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.

November 30th – Romania

December 1st – Portugal, Romania

December 6th – Spain, Finland

December 7th – Italy (Milan Only)

December 8th – Austria, Italy, Portugal, Malta, Macedonia, Spain

The route ahead

The information that is available in the Weekly Market Update comes from a variety of online sources, partners and our own teams. Click below to learn more about how Zencargo can help make your supply chain your competitive advantage.

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