Transport Update 9th 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: Resumption of US travel comes in time for peak season

• Ocean

• Air

• Road

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In focus: Resumption of US travel comes in time for peak season

From 8 November, the US reopened its borders to fully vaccinated travellers for the first time since March 2020.

The transatlantic air cargo market is set to receive a major capacity boost as US air passenger services reopen to a large number of markets. This has relieved pressures on a tight market for importers and exporters in the lead up to Christmas and Black Friday.

The return of air freight in this market may result in a lower demand for ocean freight to and from the US, though this may not be evident for a few weeks.

Ocean

Asia 

Central China to USA and Europe

• The China International Import Expo is being held this week; nearly all preighters are cancelled this week. 
• There has been no change on the epidemic at PVG airport and 40% of flights will remain cancelled for the next month. Terminal workers are still working in line with a closed loop system, therefore PVG is operating with less than 50% of its usual manpower. 
• Rates from Shanghai this week are stable but still at a high level. 
• Rates at Ningbo airport have increased this week. However, rates and space need to be checked with carriers on a case-by-case basis. 
• Large shipments should be booked well in advance to allow time to find space.
• We are being told that space should be booked before final confirmation of rate. 

North China to USA and Europe

• At TSN Airport, the air situation is critical in November. Rates are higher than last month as many flights were cancelled. 
• Passenger flights need 10 days ahead to pre-book space.
• Please enquire and book space as early as possible.
• Air rates have remained the same for PEK airport this week. 
• Heavy snow in Beijing has led to blocked highways, which has delayed trucks transporting cargo.

South China to USA and Europe

• Air rates have increased a lot at CAN airport and space is relatively limited. 
• Space to the US is tight at SZX and XMN airports and rates have increased again this week.
• All rates need to be checked with carriers on a case-by-case basis.

Americas

• Major Trans-Atlantic airlines are reporting full planes on Monday as the U.S. reopens its borders to fully vaccinated travellers for the first time since March 2020.
• This has opened up much needed cargo space to a tight market in the weeks leading up to Black Friday and the holiday season. 
• Group airlines were able to increase passenger capacity to 50% of 2019 levels.
• Major cities — and cargo gateways — New York, Miami, San Francisco and Los Angeles are experiencing especially strong customer demand.

Europe/UK

• As the US reopens its borders, severe congestions at Heathrow could limit movements in the UK. 
  • LHR airport transit sheds are in turmoil as imports are taking up to five days to check in. 
  • Exports are queuing for hours, leading to freight missing flights.

Road

UK Haulage

 

European road freight rates at record highs

The European Road Freight Rate Benchmark for Q3 conducted by Ti, Upply and IRU shows that prices have hit historic highs across Europe, driven by a mix of robust economic growth, global supply chain bottlenecks, rising costs and scarce capacity.

• The Q3 2021 European Road Freight Rate benchmark index stood at 107.6, 3.0 points higher than in Q3 2020.
• Q3 2021 is the 5th consecutive quarter of rate increases and a 4% rise from the rates seen in Q2 2020.
• French domestic road freight rates continue rising steadily, increasing 3.5% year-on-year in Q3 2021.
• Freight rates are expected to rise further in Q4 2021 as demand increases and capacity remains tight.

Be Prepared – New Import Controls EU-to-GB from 1 Jan 2022

Europe is suffering from a shortage of 400,000 drivers, with much of the demand based in the UK, a situation expected to get considerably worse by January, when new UK-EU border controls come into force.

Changes to take effect on 1 January 2022:

• Full customs declarations and controls.
• Pre-notification of Sanitary and Phytosanitary (SPS) goods (extended from 1 October 2021).

European Bank Holidays – November 2021

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 11th – Belgium, France, Poland, Serbia, Austria (Regional)

November 17th – Slovakia, Germany (Regional), Czechia

November 18th – Morocco, Latvia, Croatia

November 30th – Romania

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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