Zencargo Market Update: 13th March

China

Ocean

• Capacity from the Far East to the UK and Europe has been reduced by an average of 23%  by blank sailing programs since week 6. 
• Rates  from the Far East to the UK and Europe have continued to fall but at a slower pace. 
  • The slower pace of rate decline may be an indication that blank siblings are stemming rate erosion. 
• MSC has announced they will suspend the Shogun service, this comes after its sailings were heavily blanked in preceding weeks.
  • The service previously ran from China to Rotterdam and Bremerhaven.
  • This will allow vessels to be deployed on alternative routes. 
• Amidst conflicting assessments over China’s future as the “world’s factory”,  China has retained the title of world’s largest manufacturing sector for the 13th straight year. 
  • Analysts and experts have been divided over the rate and extent of manufacturing leaving China for countries such as Vietnam and India.

Air

Central China to USA and Europe 

• From SHA to Europe,  rates have increased this week, while rates to the USA have remained stable.  
  • Bad weather has resulted in flights to Europe being cancelled or rerouted which has driven the rate higher
• From NGB to Europe,  rates have increased this week, while rates to the USA have remained stable.  

North China to USA and Europe 

• From TSN to Europe and the USA,  rates have increased this week, especially to the USA.
  • Rates remain unstable and continue to fluctuate 
  • For cargo to Europe we recommend booking at least 4-5 days in advance due to limited space
  • For cargo to the USA we recommend booking at least 6-7 days in advance due to limited space
  • Air China, Lufthansa and Singapore Airlines can provide spot rates for dense cargo on their passenger flights from TSN to Europe.  
  • Japan Airlines, All Nippon and Cathay Pacific can provide spot rates for dense cargo on passenger flights from TSN to the USA. 
  • Korean Air and Asiana Airlines can provide freighter flights with earlier ETDs on both routes. 
• From PEK to Europe and the USA, rates have increased this week, especially to the USA.
  • For cargo to Europe we recommend booking at least 4-5 days in advance due to limited space
  • For cargo to the USA we recommend booking at least 6-7 days in advance due to limited space
  • There is still reduced service available to the USA as some carriers are taking on less volume than normal or have cancelled and rescheduled flights. 
  • We advise checking space and rates on a case-by-case basis. 
• From TAO to Europe and the USA, rates have increased slightly this week.
• From CKG to Europe, rates have remained stable but to the USA rates have seen a slight rise.
  • Plenty of space is available between CKG and Europe.

South China to USA and Europe 

• From  CAN to Europe and the USA, rates have increased this week.
  • Space is not as tight this week.
  • Rates and space availability should be checked on a case by case basis.
• From SZX to Europe and the USA, rates  have increased this week.
  • Space has become tight forcing rates higher.

USA

Ocean

• Rates on Transpacific trade have continued to fall although at a slower pace. 
  • It is expected that this rate decline will continue into the second half of March
• Poor weather conditions have caused some congestion at ports and rail terminals across the US.
  • At the Port of Houston 2 cranes broke down which has caused a backlog of cargo processing and there are currently 4 vessels waiting to berth.
  • The Port of LA and Long Beach currently has 5 vessels waiting to berth with an 8 day wait for the rail terminal.
  • The port of New York and New Jersey currently has 4 vessels waiting to berth.
  • The Port of Norfolk is currently the worst affected with 9 vessels waiting to berth. 
• New data has shown that US imports for February dipped below pre covid levels 
  • In February imports to all U.S. ports totaled 1,734,272 twenty-foot equivalent units.
  • Compared with January the levels, that indicates a 16.2% reduction. When compared year on year it is  a 25% reduction and when compared with February 2019 it reflects a 0.3% reduction.

Benelux

Ocean

• The Port of Gothenburg and Port of LA have signed a Memorandum of Understanding
  • The Memorandum of Understanding or MOU is designed to strengthen their cooperation in a range of areas including sustainability, digital and physical infrastructure, and potential trade opportunities.
  • Both Ports have emphasised the importance of using data driven insights and promoting alternative fuels in an effort to minimise emissions. 

UK

Ocean

• A strike by the Public and Commercial Services (PCS) union will take place on the 15th March which will impact Border Force operations at all UK ports and airports. 
  • The UK government has announced that there will be trained staff to replace those striking to minimise delays.
  • The government has also warned that there are separate unrelated strikes occurring in France during this time which could cause additional disruptions. 
• The Windsor Framework announced last week has received a positive response from business leaders in the UK 
  • The framework is designed to reduce paper work and checks for goods travelling between Great Britain and Northern Ireland. 
  • The framework still needs to be ratified by the UK and EU government bodies.  

Road

• In a bid to boost HGV drivers the UK government has announced a proposed reformation of training rules. 
  • The reforms will harness the UK’s post-Brexit freedoms to help retain and attract new HGV drivers.
  • Some proposed changes include making the Driver Certificate of Professional Competence (DCPC) shorter, cheaper and more effective. 
• HGV drivers have been urged to expect delays due to the aforementioned PCS strike occurring on the 15th March.

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.

March 13 – Spain*

March 15 – Hungary

March 17 – Ireland (Eire)

March 19 – Austria*, Malta

March 20 – Spain*

March 25 – Cyprus, Greece

March 31 – Malta 

April 1 – Cyprus, San Marino

April 6 – Andorra*, Denmark, Faroe Islands, Greenland (Kalaallit Nunaat), Iceland, Norway, Portugal*, Spain, Svalbard and Jan Mayen, Switzerland*

April 7 – Andorra, Austria*, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France*, Germany, Gibraltar, Greenland (Kalaallit Nunaat), Guernsey and Alderney, Hungary, Iceland, Ireland (Eire)*, Isle of Man, Jersey, Latvia, Liechtenstein*, Luxembourg*, Malta, Netherlands*, Norway, Portugal, Saint Helena, Slovakia, Spain, Svalbard and Jan Mayen, Sweden, Switzerland*, UK (United Kingdom), Åland (Ahvenanmaa)

April 8 – Andorra*, Sweden*

April 9 – Albania, Bosnia and Herzegovina (FBiH)*, Croatia, Denmark, Estonia, Faroe Islands, Finland, Germany*, Holy See (Vatican City), Iceland, Italy, Kosovo, Kosovo, Lithuania, Netherlands, Norway, Poland, Portugal, San Marino, Slovenia, Svalbard and Jan Mayen, Sweden, Åland (Ahvenanmaa)

April 10 – Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina (FBiH)*, Croatia, Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Gibraltar, Greenland (Kalaallit Nunaat), Guernsey and Alderney, Holy See (Vatican City), Hungary, Iceland, Ireland (Eire), Isle of Man, Italy, Jersey, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta*, Monaco, Netherlands, Norway, Poland, Saint Helena, San Marino, Slovakia, Slovenia, Spain*, Svalbard and Jan Mayen, Sweden, Switzerland*, UK (United Kingdom)*, Åland (Ahvenanmaa)

April 11 – Kosovo

April 14 – Bosnia and Herzegovina (FBiH)*, Bulgaria, Cyprus, Greece, Montenegro, Romania, Serbia

*Not in all regions