Zencargo Market Update: 14th November

China

Ocean

• Due to poor consumer demand and weak predictions for consumer spending over the holiday period, Chinese exports to the USA and Europe have fallen 
  • Exports fell by 13% to North America and 9% to Europe in October. 
  • This is also reflected in China’s overall exports which have fallen in October for the first time since May 2020.
  • Transpacific rates show signs of possible stabilisation, however Asia to Europe rates continue to decrease. 
  • Blank sailings for December are still yet to be finalised.

Air

Central China to USA and Europe 

• From SHA to Europe and the USA  rates have remained stable compared with last week as volume has remained low.
• From NGB to Europe and the USA , rates have decreased this week, with the final rate being provided on a case by case basis. 

North China to USA and Europe 

• From TSN to Europe, rates have seen a slight decrease compared to last week and represent a significant reduction from rates during the same period in 2021.
  • Air China, Lufthansa and Singapore airlines can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
• Similar to Europe, rates from TSN to USA  have seen a slight decrease compared to last week and represent a significant reduction from rates during the same period in 2021. 
  • Japan Airlines, Cathay Pacific and All Nippon Airways can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
• From PEK to Europe and the USA, rates have seen a slight decrease compared to last week however space still remains tight. 
  • For flights from PEK to the USA the available carriers include Japan Airlines, All Nippon Airways and Cathay Pacific. 
    • Due to less available services on PEK to the USA,  some airlines are uploading less volume or have cancelled or rescheduled their flights. 
• From TAO to Europe, rates have decreased this week compared to last week.
  • ETD for new bookings is the 17th November.
• From TAO to the USA, rates have remained the same this week compared to last week.
  • ETD for new bookings is the 17th November.
  • All Nippon Airways can load 10 tons of cargo per week.
  • Asiana Airways can load 2 tons of cargo per week.
• Compared to last week, rates have remained the same from CKG to Europe and have increased slightly from CKG to the USA. 

South China to USA and Europe 

• From CAN to the USA and Europe rates have remained stable since last week and rates can be negotiated with carriers on a case-by-case basis. 
• From SZX to Europe and the USA, the market is stable and rates can be negotiated with carriers on a case-by-case basis. 
• From XMN to Europe rates have remained the same compared to last week, however rates from XMN to the USA have seen a slight decrease. Rates can be negotiated with carriers on a case-by-case basis. 

India

Ocean

• Volume is down this week due to reduced demand and a long running monsoon season.
  • Demand is expected to increase in Q1 of 2024 due to the peak season for melon and grape exports. 
    • Rates are expected to rise during this time due to decreased capacity. 
• Space is generally available on lanes to both the USA and Europe.
• Carriers are omitting some European port calls and a potential for increased blank sailings as demand is low.
• Schedule reliability has seen an improvement of 15% since September, reflecting a year on year increase of 3%. 

USA

Ocean

• Rates have continued to decline on transpacific trade lanes however the intensity of the decline has steadily been decreasing in comparison to rates from Asia to Europe.
  • Carriers are continuing to balance capacity through blank sailings to meet demand.
  • Volume reductions are easing in October and important levels remain the same as September.
• Schedule reliability has improved as congestion at ports is easing.
  • West Coast reliability is currently sitting at 32% up 22% from the same time in 2021.
  • East Coast reliability is currently 21% an increase of 7% from 2021 at the same time.
  • The number of container ships waiting to berth at ports on the US East Coast has dropped from 84 ships in September to 53 in October. 

Benelux

Ocean

• The latest strike action at the Port of Antwerp in Belgium took place for a single day on the 9th of November.
  • While this resulted in delays for shippers on the 9th and 10th of November as workers downed tools, there are no major ongoing delays reported. 
  • The strikes are a result of ongoing pay disputes between port operators and workers who have cited that pay is not in line with the rising cost of living. 

UK

UK 

Ocean

• Strike action at the Port of Liverpool which was planned to take place from the 14th till the 21st of November has been called off.
  • This news comes as members of Unite union and Port of Liverpool operator Peel reached an agreement over pay. 
• The UK Government has awarded the Port of Aberdeen more than £200,000 in order to accelerate the ports sustainability goals.
  • The Port of Aberdeen is aiming to achieve net zero emissions by 2040.
  • The port is also currently developing a detailed project plan for the world’s first hydrogen-powered, zero-emission crossing to Norway in 2024.

Road

• The RHA has called on the Chancellor to introduce a fuel duty rebate for HGVs and coaches of at least 15 pence per litre to help bring down prices.
  • The request has come in the face of rising fuel costs and is aimed at reducing operating costs and easing the 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.

November 15th – Austria, Belgium

November 16th – Germany

November 17th – Czech Republic, Slovakia 

November 18th – Croatia, Latvia 

November 30th – Romania

December 1st – Portugal, Romania

December 2nd – Romania

December 3rd – Spain

December 6th – Finland, Spain 

December 8th – Albania, Andorra, Austria, Italy, Liechtenstein, Macedonia, Malta, Monaco, Portugal, San Marino, Spain, Switzerland* 

December 13th – Malta

*Not in all regions