Transport Update 25th August 2021

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: Potential shutdown looms at Shanghai airport, congestions worsens, equipment levels stop bookings

• Ocean

• Air

• Road

In Focus: Disruption and uncertainty at Shanghai, world’s 3rd largest airport

Due to new reported cases of Covid-19, Shanghai authorities have suspended a large portion of ramp operations at PACTL terminal. Services including the loading and unloading of aircraft will be affected until further notice. In response to this suspension a number of airlines have suspended flights into Shanghai Pudong airport.

Other terminals at Shanghai Pudong will continue to operate as normal but we expect the closure of PACTL to have an effect on the other terminals.

As a result of these flight cancellations we expect rates to increase, capacity to reduce by over 30% and uplifts to be delayed. We ask that our customers prepare for these delays and increased costs. If you have any planned air freight shipments ex-PVG, please notify us as soon as possible.

While hopes were high after all airport staff have tested for Covid-19 twice since Friday, there are reports of a new case being found today which will extend the pause in operations.

Want freight market updates delivered straight to your inbox every week?

Ocean

Asia

US market

• Rates have increased and space is extremely tight
• BR & CK have cancelled all flights including 35 weekly flights into the USA
• Uplifts are expected to be delayed and transit times will be longer
• Rates and space must be checked on a case by case basis.

EU market (base airport like FRA/AMS/LUX, etc)

• Rates have increased and space is extremely tight
• BR & CK have cancelled all flights including 13 weekly flights into the Europe
• Uplifts are expected to be delayed and transit times will be longer
• Rates and space must be checked on a case by case basis.

UK market

• Rates have increased and space is extremely tight
• BR & CK have cancelled all flights including 35 weekly flights into the USA
• Uplifts are expected to be delayed and transit times will be longer
• Rates and space must be checked on a case by case basis.

Americas

• Rates to PVG will increase in the coming weeks as a result of the terminal closure
• Rates into UK and Europe remain mostly the same this week
• Space remains constricted due to reduced capacity and staff shortages.
• ORD is still over capacity and there are issues over release updates. Forwarders are having to send in trucks to collect without knowing if freight is ready and the ground handling agents aren’t answering their phones
• Forwarders are choosing to use smaller airports as much as possible as there is less congestion. Freight rates will be higher but there is less chance of incurring additional costs for attempted pick ups, waiting time and storage.
• LAX is still a challenge, there are usually waiting time charges applied to most shipments due to the long queues to collect/deliver into the ground handling agents warehouse.

Europe

• Rates from PVG will increase in the coming weeks as a result of the terminal closures.
• Rates to the US remain the same with no real increase.
• Capacity to most regions is still restricted.

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

• From 1 October, there will be new safety and security requirements surrounding exports with an expanded list of movements requiring exit summary declarations (EXS), raising complexity in GB-EU supply chains.
• From the end of next month, shippers will be required to supply an EXS for further movements, like empties being moved under a transport contract to the EU and goods moving by ro-ro vessels where there would otherwise be a requirement for an EXS.

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.

Get In Touch