Zencargo Market Update: 12th September

China

Ocean

• Typhoon Muifa is predicted to hit the ports of Shanghai, Ningbo and Busan on Wednesday, coming on the heels of Typhoon Hinnamnor.
  • Currently, the queue of vessels in the region is still above the 50-day average as the ports recover.
  • Storm Hinnamnor reached Chinese and Japanese coasts over the weekend of 3-4 September, halting operations at the Chinese ports of Yangshan and Ningbo-Zhoushan and closing South Korea’s Busan port.

• China’s Golden Week will take place from 1st October to 7th October, with disruption kicking in early. 
  • Carriers are issuing blank sailings to cope with the low demand before and after golden week that happens in the first week of October. 
  • MSC has issued nine blank sailings during weeks 37-41.
  •  Maersk has announced four blanked or delayed sailings between September 15th and October 1st.
• Effective late September 2022, Maersk will temporarily revise the port rotation of the Southern Star-service, which connects Asia to Oceania, by changing the port calls at Napier and Brisbane from weekly to alternating fortnightly.

Air

Central China to USA and Europe 

• After Typhoon Hinnamor in China, flights are now returning to normal schedules. The impact of Typhoon Muifa is currently not predicted to be serious.
• Rates from NGB to Europe have remained stable.

North China to USA and Europe 

• From TSN to Europe, rates have decreased. However, rates have remained the same between TSN and the USA compared to last week. 
  • Airlines are offering competitive rates to increase bookings on their carriers. 
• Rates have decreased from PEK to Europe and the USA. Space is still tight to both lanes.

South China to USA and Europe 

• Hong Kong is adding restrictions on e-commerce products, aimed at managing risk on electronics and other dangerous goods. 
• From SZX to Europe and the USA, rates are stable. 
• From XMN to Europe rates have decreased but they have remained stable to the US.

USA

Ocean

• Port congestion has shifted from the west coast to the east – last week, there were 130 containerships waiting for berth space at US ports, with 75% being on the east coast. 
  • This is partly due to shippers moving Asian imports from California in anticipation of delays
  • Savannah had the longest line-up, with 41 vessels awaiting berth space at the port.
  • Shippers are now being more agile on port choice, putting strain on infrastructure management between destinations.
• U.S. freight railroads have announced they were preparing for a possible strike and service disruption a week before a deadline in protracted labour talks.

Benelux

Ocean

• At the terminals at Antwerp, labour is at a good level as the summer holiday period is over. Yard utilisation is high but manageable. Reefer plug usage on the quays continues to be high. 
  • The designated area for long dwelling imports has a constant feed with increasing stacks.
• Low water levels on the River Rhine, a key transport artery into central Germany and Switzerland, are adding to cargo congestion in Rotterdam, Hamburg and Zeebrugge.
• Effective late September 2022, CMA CGM will launch a new Transatlantic service to connect the Mediterranean to North America East Coast.
• Yard utilisation at Rotterdam World Gateway (RWG) remains high. Cargo opening time for the acceptance of export cargo is 8 days in advance of vessel ETA and RWG is not accepting empty containers’ delivery until further notice.

Air

• Liege airport is appealing an environmental ruling that would impose a maximum limit of 50,000 aircraft movements per year for aircraft over 34 tons, and an obligation to reduce aircraft noise by 5% per year from 2024 as well as a noise quota on night flights. 

• • The airport’s own plans aim for 67,000 movements at its peak and no limitations on night flights. 
  • Liege is a major conduit for European e-commerce, which could cause a reduction in capacity and increase in rates.

UK and Rest of Europe

Ocean

• Despite the Felixstowe strike ending, disruption remains.
  • Waiting times shot up at Felixstowe from 10 hours at the beginning of August, to around the 30-hour mark.
  • The time to revert to normality will depend on how long it takes to process the backlog of empty shoreside containers.
  • Carriers expect disruption to continue until at least mid-September.
• A strike in Liverpool is confirmed for September 19th until Monday 3rd October.
• Another Felixstowe strike is also expected and the unions are aiming at targeting the same period as the Liverpool port strike.

Road/Rail

• Strike action is due to take place on 15th and 17th September and 26th and 27th September. 
  • Two UK trade unions, The Rail, Maritime and Transport (RMT) and the Transport Salaried Staffs Association (TSSA) have called a fresh round of strikes later this month. 
  • Over 40,000 RMT members are expected to take strike action over pay rises not matching the high inflation rate and cost of living.

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.

September 15th – Slovakia, Spain*

September 17th – Spain*

September 19th – UK

September 20th – Germany*

September 21st – Malta 

September 22nd – Bulgaria 

September 24th – Austria*

September 27th – Belgium*

September 29th – Czech Republic

October 1st – Cyprus

October 3rd – Germany

October 5th – Portugal

October 10th – Austria

October 12th – Spain

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

October 31st – Germany*, Hungary, Ireland, Slovenia

*Not in all regions