Zencargo Market Update: 15th May

China

Ocean

• New customs data has shown China’s exports grew by 8.5% in April, despite slowing global demand. 
  • This represents a slower rate of growth seen in March where exports grew by 14.8%. 
  • Capital Economics, a consultancy firm, has stated that uptick in March may not have been an accurate reflection of exports “This suggests that global demand for Chinese goods remains weak and supports our view that the jump in March had more to do with distortions to the customs data rather than a genuine turnaround”.
• In 2022, China retained its title as the world’s largest logistics market for 7th consecutive year.
  • China registered $2 trillion in revenue in 2022, marking a 4.7% growth compared to 2021.

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have mostly remained stable.
• From NGB to Europe rates have fallen  compared with last week,  while rates to the US have remained stable.
  • 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 decreased this week.
  • We recommend booking 3 -4 days prior to the cargo ready date for shipments to Europe.
  • For Europe, the main services on this lane include Air China, Lufthansa and Singapore Airlines. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
  • For the US,  the main services on this lane include Japan Airlines, All Nippon Airways and Cathay Pacific. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
• From PEK  to Europe and the US rates have decreased this week.
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe and the US rates  have remained stable this week. 
• From CKG to Europe have remained stable, while rates to the US have increased slightly since last week. 

South China to USA and Europe 

• From  CAN to Europe and the USA, rates have remained stable this week. 
  • Space availability has improved since last week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From SZX  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. 
• 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

• A new US bill, The Port Crane Security and Inspection Act of 2023, is aimed at addressing  concerns over China’s influence on port infrastructure.
  • The bill places restrictions on the use of cranes, requiring inspections of foreign cranes for potential security vulnerabilities before they are put into operation.
  • Currently, roughly 80% of cranes in operation at US ports are manufactured from China.
  • Chris Connor, President and CEO of the American Association of Port Authorities (AAPA) has strongly opposed the legislation, citing that security concerns over Chinese made cranes were”sensationalised”.
• New data released by the United Nations Conference on Trade and Development (UNCTAD) has revealed the extent of pressure on US port capacity during the pandemic.
  • On a global level ports experienced a 15% decrease in capacity during the pandemic era demand surge.
  • In the US, this rose to as high as 35% as rising demand, inadequate port infrastructure and congestion all contributed to putting pressure on capacity. 

Benelux

Ocean

• The German government has approved the purchase of a minority stake in the Port of Hamburg by COSCO shipping, a Chinese state owned marine transportation group . 
  • COSCO has purchased a 24.9% stake in the port in a deal which was heavily scrutinised by the German government over concerns of foreign ownership over critical infrastructure. 
  • China is Germany’s biggest trading partner accounting for just under $320 billion (USD) of trade and the approval of this deal is expected to support the growth of China and Germany’s trade in the years ahead.

UK

Ocean

• The construction of a Border Control Post (BCP) at Cairnryan which will check goods coming from the Republic of Ireland and wider EU via Northern Ireland has been stalled.
  • The post is part of the UK government infrastructure to begin post Brexit customs controls on EU goods later this year.
  • However,  a dispute between the Scottish and UK governments has forced construction to be halted. 

Road/Rail

• The UK government has announced a legislation change allowing longer semi trailers (LST) on UK roads.
  • The change in legislation follows an 11 year trial and permits longer semi-trailer combinations up to 18.55 metres on GB roads – 2.05 metres longer than standard size. 
  • The change is expected to bring a  £1.4 billion boost for the UK’s economy – supporting productivity and saving 70,000 tonnes of carbon dioxide.

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.

May 15 – Spain*

May 17 – Spain*

May 18 – Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, Netherlands, Sweden

May 19 – Belgium*, Denmark*

May 24 – Bulgaria

May 27 – Sweden*

May 28 – Denmark, Estonia, Finland, Germany*, Netherlands, Poland, Slovenia, Sweden

May 29 – Austria, Belgium, Denmark, France, Germany, Hungary, Luxembourg, Netherlands

May 30 – Croatia, Spain*

May 31 – Spain*

June 1 – Romania

June 2 – Italy, Romania*

June 4 – Greece, Lithuania, Romania

June 5 – Cyprus, Denmark*, Greece, Ireland (Eire), Romania

June 6 – Sweden

June 7 – Malta

June 8 – Austria, Croatia, Germany*, Poland, Portugal, Spain*

June 9 – Spain*

June 10 – Portugal

June 13 – Portugal*, Spain*

*Not in all regions