Zencargo Market Update: 15th July 2024

Ocean

• The market remains tense with significant space constraints across trades ex Asia. Vessels are fully booked for the entire month of July, with certain carriers adding capacity but still struggling to meet demand. 
• Slight improvements are seen in Asian port congestion, but significant problems persist in Singapore and Colombo. Feeder vessels are facing delays in reaching their connections on time.
• Equipment issues are showing signs of improvement, but challenges remain.

Air

Central China to Europe (SHA/NGB):

• Shanghai (SHA): With more people in the EU on holiday, bookings have decreased slightly. The rate has been stable with minor fluctuations based on FBA conditions. Partners suggest booking space at least one week in advance​.
• Ningbo (NGB): Rates are on a dropping trend this week but may adjust at the weekend. Final rates depend on actual flight checks. It is advised to check for spot rates frequently​​.

North China to Europe (TSN/DLC/PEK/TAO):

• Tianjin (TSN): KE rates remain the same as last week, and OZ confirms to accept bookings case-by-case. The market is tighter than last week.
• Dalian (DLC) / Beijing (PEK): Major services from SQ/CX/LH/CA/KL/AF/JL have kept rates unchanged. Dense cargo can apply for spot rates. Volume cargo needs to be booked 7-10 days in advance, accepting flight splits. Hot weather is affecting loading capacity, with space fully booked until the weekend.
• Qingdao (TAO): The market is stable with space available for most EU airports. Rates to London Heathrow have increased slightly. Spot rates can be applied for dense cargo​.

South China to Europe (CAN/SZX/XMN):

• Guangzhou (CAN): The market remains normal, with some flights offering discounts. Volume shipments may get better rates
• Shenzhen (SZX): The market is stable with rates for deferred service to main EU airports varying across routes. All shipments need to be checked case-by-case with carriers​.
• Xiamen (XMN): The market is stable, but all shipments need to be checked case-by-case upon actual flight booking.

Ocean

• Capacity and rates: The market to the USA remains highly constrained, with strong demand leading to tight space availability. For the second half of July, carriers’ FAK rates have held steady, with some showing reductions to both West Coast (WC) and East Coast (EC). Space remains tight and it is recommended to book 2-3 weeks in advance​.
• Panama Canal: The Panama Canal has announced two successive increases in the permissible draught on the waterway following better-than-expected water levels in the Gatun lake. More normal rainfall patterns have returned in recent weeks, and daily transits had already increased from 32 to 33 in early June, and again to 34 on 22 June. The canal remains below normal capacity, however, with normal draught limits usually set at 50 feet, rather than the current 47/48 feet​.
• Services: Regional carriers are returning to the Transpacific trade, while main line carriers have also been injecting additional capacity to the TP route.  TS Lines is re-entering with two of extra loaders between the Far East and USWC later this month, as well as a Vessel Sharing Agreement (VSA) with SeaLead Shipping.

Air

Central China to USA (SHA/NGB)

• Shanghai (SHA): The booking to the US is stable this week, with rates remaining the same, though subject to change in line with FBA shipment volume. It is suggested to book space at least one week in advance​.

North China to USA (TSN/DLC/PEK/TAO)

• Tianjin (TSN): KE rates remain the same as last week, while OZ accepts bookings case-by-case. The market is tighter than last week. JL is currently offering competitive rates for volume cargo.​.
• Dalian (DLC) / Beijing (PEK): Major services from CX/JL/NH/BR have kept rates unchanged. Dense cargo can apply for spot rates. Volume cargo needs to be booked 7-10 days in advance, accepting flight splits. Hot weather is affecting loading capacity, with space fully booked until the weekend.
• Qingdao (TAO): The market to the US is stable with space available to some destinations. Accordingly, rates to some US airports have decreased slightly this week. Spot rates are available for dense cargo.

South China to USA (CAN/SZX/XMN)

• Guangzhou (CAN): The market remains normal, with some flights offering discounts. Volume shipments may get better rates, but advised to check on a flight-by-flight basis.
• Shenzhen (SZX): Rates are stable this week. All shipments need to be checked case-by-case with carriers.
• Xiamen (XMN): The market is stable with steady rates for deferred services. Final rates depend on actual flight checks​.

Ocean

• Capacity and Rates: The market from the Indian Subcontinent to Europe is experiencing significant disruptions. Carriers have stopped accepting bookings from South India for Europe due to heavy congestion in Colombo, causing a minimum delay of three weeks in transshipment. Carriers are only quoting on spot rates due to the tight space situation​.
• Port Congestion: Heavy congestion is reported at transshipment ports such as Singapore (SGSIN), Port Klang (MYPKL), and Colombo (LKCMB). This congestion has led to rolls, backlogs, and delays. The adverse weather conditions around the Cape of Good Hope are compounding the situation, causing further delays.
• Equipment Issues: There is a significant imbalance in equipment, especially with 20ft containers being more prevalent in imports and 40ft containers being used for exports in Bangladesh. In South India, carriers are struggling with equipment availability due to transshipment issues in Colombo. The overall equipment situation is showing slight improvement, but challenges remain.

Ocean

• Capacity and Rates: Rates from North Europe to the USA have fallen slightly, while rates from the Mediterranean have increased due to reduced capacity. 
• Port Congestion: Congestion in the Mediterranean, coupled with schedule reliability issues and blank sailings, remains significant, leading to increased rates for July. Northern Europe demand has not been affected by the reduced capacity, with most carriers extending their rate levels until the end of Q3​​. Equipment deficits continue in certain areas of South and East Germany, as well as Poland​.
• Operational Challenges: The International Longshoremen’s Association (ILA) has reported that a strike “is becoming more likely,” adding pressure to ocean carriers and marine terminals along the East and Gulf coasts.

USA

Ocean

• Los Angeles/Long Beach: Currently, 3 vessels are waiting to berth with a 6-day dwell on the rail terminals. Yard capacity is at 68%​.
• Oakland: 5 vessels are waiting to berth with an 8-day rail dwell time.
• Seattle/Tacoma: 7 vessels are waiting to berth with a 7-day rail dwell time​.
• New York/New Jersey: 2 vessels are waiting to berth with a 3-day dwell on the rail. Yard capacity is at 70%​.
• Savannah: Experiencing vessel bunching with 6 vessels waiting and a 2-day dwell. Bunching is expected to continue for the coming weeks.
• Norfolk: 3 vessels are waiting with a 3-day dwell​.

Benelux

Antwerp, Belgium:

• • PSA 913: Yard utilisation is at 85-90%, with reefers also at 85-90%. Utilisation is stressed by late vessel arrivals from Hamburg due to the strike​.
  • PSA 869: Yard utilisation is at 60-65%, with reefers at 50-55%​.
  • AGW: Yard utilisation is at 75-80%, with reefers at 65-70%. Cargo opening times are 5 days ahead of vessel arrivals​.

Rotterdam, The Netherlands:

• ECT: Yard utilisation is stable at 65-70%​.
• RWG: Yard utilisation is at 75-80%​.

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 21 – Belgium

July 25 – Spain*

Aug 5 – Croatia, Ireland (Eire), Spain*

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

Aug 16 – Romania*

Aug 19 – Hungary

Aug 20 – Estonia, Hungary

Aug 29 – Slovakia

September 2 – Luxembourg

September 6 – Bulgaria

September 8 – Malta, Spain

September 9 – Spain

September 11 – Spain

September 15 – Slovakia

September 17 – Spain

September 20 – Germany

September 21 – Malta

September 22 – Bulgaria

September 23 – Bulgaria

September 24 – Austria

September 27 – Belgium

September 28 – Czech Republic

*Not in all regions