Zencargo Market Update: 10th July

China

Ocean

• China has announced they will be placing export restrictions on  gallium and germanium, two critical elements for making semiconductor chips.
  • The restrictions are set to come into effect in August and will require exporters to apply for a  special licence to ship them.
  • Many have speculated the restrictions are a response to US  curtailing exports of high-end microchips and technology to China. 

Air

Central China to USA and Europe 

• From SHA to Europe rates and the US rates have increased.
  • Rates have increased due to C-Check’s (circraft compliance checks) and poor weather restricting the amount of available flights. 
• From NGB to Europe rates and the US rates have decreased.
  • 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 remained stable this week. 
  • For Europe and the US, the fastest services are Korean Air and Asiana Airlines, which can provide freight flights that can offer an earlier estimated time of departure and arrival. 
• From PEK to Europe and the US, rates have remained stable this week. 
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe rates have remained stable this week, while rates to the US have increased slightly.
• From CKG to Europe rates have remained stable while to the US, rates have risen slightly. 

South China to USA and Europe 

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

USA

Ocean

• Congestion at US West Coast ports  has eased meanwhile issues have arisen on the east coast.
  • There has been significant congestion at the Norfolk terminal at the Port of Virginia.
  • Currently, there are 21 vessels waiting to berth which has been caused by vessel bunching.  
  • Vessels are exploring options to divert to neighbouring ports to avoid the congestion. 
  • Meanwhile at the Port of Long Beach and LA congestion has eased to 4 vessels waiting to berth down from 12 two weeks ago, which was the highest level in 2023. 
• The Port of New York handled 5% more cargo in May 2023 than in May 2019.
  • This also represents a 4.3% increase on April figures. 
  • This increase compared with pre pandemic levels gives an indication of the volume which has been diverted from West Coast to East Coast US ports.
  • In 2023 the port has so far handled 1.6 million TEU and is the second busiest in terms of loaded imports.

Canada

Ocean

• 30 ports on the coast of British Columbia, including Vancouver and Prince Rupert have been shut down since  1 July due to industrial action.
  • The strikes follow a breakdown of contract negotiations between the International Longshore and Warehouse Union (ILWU) and the British Columbia Maritime Employers Association (BCMEA).
  • Vancouver and Prince Rupert are Canada’s top and third-largest maritime gateways. Together the ports handle 20% of the country’s traded cargo flows and therefore the strikes pose a serious threat, not only to the country’s supply chains but the entire economy. 
  • Whilst the disruptions from the strikes have been mild due to the current low volume market, the severity of their impact will increase rapidly as the strike draws on.

Benelux

Ocean

• The Port of Rotterdam will deploy autonomous yard trucks in the coming two years 
  • The first of 6 trucks will commence working at the Kramer City Terminal at the end of 2023 with plans to eventually extend to the Maasvlakte Container Exchange Route in 2024.
  • The port plans to trial the new autonomous yard trucks until 2025, where, if successful, will rapidly increase the implementation of the vehicles at the port.

UK

Road/Rail

• The UK government has announced a funding band increase for the HGV C+E apprenticeship.
  • The funding has increased from £7,000 to £8,000 and is aimed at closing the labour gap as the industry struggles to fill driver seats. 
  • Sally Gilson, RHA Policy Lead, Skills and Drivers, said: “This move is much needed given rising costs and inflation, and will help get more new drivers behind the wheel.”

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.

July 11 – Belgium*

July 14 – France

July 21 – Belgium

July 25 – Spain*

July 28 – Spain*

Aug 5 – Croatia, Spain*

Aug 7 – Ireland (Eire)

Aug 14 – Romania*

Aug 15 – Austria, Belgium, Croatia, Cyprus, France, Germany*, Greece, Italy, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovenia, Spain

Aug 20 – Estonia, Hungary

Aug 29 – Slovakia

Sep 1 – Slovakia

Sep 2 – Spain*

Sep 4 – Luxembourg*

Sep 6 – Bulgaria

Sep 8 – Malta, Spain*

Sep 11 – Spain*

Sep 15 – Slovakia, Spain*

Sep 18 – Switzerland*

Sep 20 – Germany*

Sep 21 – Malta

Sep 22 – Bulgaria

Sep 24 – Austria*

Sep 25 – Switzerland*

Sep 27 – Belgium*, North Cyprus

Sep 28 – Czech Republic

Oct 1 – Cyprus, San Marino

Oct 3 – Germany

*Not in all regions