Zencargo Market Update: 18th October

China

Ocean

• Container spot rates from China remain under pressure as demand has not picked up post Golden Week. 
  • Vessel utilisation on sailings from Asia to North Europe last week decreased to below 70% on some voyages. 
  • Shipping lines are increasing blank sailings as Maersk has announced to ‘balance the network’ the removal of the 26th October MSC Hamburg service on the 2M’s AE1/Shogun loop.
  • The loop deploys 11 vessels with an average of 14,414 TEU on a 77 day round trip. 
  • MSC, Maersk’s 2M partner, has advised that this sailing has been blanked and the service would resume a week later. 

Air

Central China to USA and Europe 

• Rates have increased this week from SHA to Europe and the USA. Shippers are advised to book earlier to secure cargo space.
• From NGB to Europe and the USA, rates have increased and space is tighter than  in previous weeks. 

North China to USA and Europe 

• From TSN to Europe and the USA, rates have increased. However, they are still lower compared to the same period as last year. 
• Rates have increased from PEK to Europe and the USA. It is advised to confirm rates and space 4 to 5 days in advance to secure cargo space.
• The route from TAO to Europe remains the same as last week. From TAO to the US West Coast, rates have increased to LAX, SEA and ORD.
• From CKG to Europe and the USA, rates remain the same. 

South China to USA and Europe 

• Rates are higher compared to last week from CAN to Europe and the USA.
• 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 and the USA rates have increased this week. 

USA

Ocean

• The Brotherhood of Maintenance of Way Employes (BMWED), which represents more than 11,000 workers has announced that its members have rejected a contract deal with a committee representing major US freight railroads. 
  • The unions have been locked into talks with freight rail carriers over sick leave, pay, and reduced staffing. 
  • Despite the failed negotiations, there is a ‘status quo’ period where the union can’t strike until 19th November. 
  • However, the long term implications of the failed negotiations are harder to predict and pose potential risk to the supply chain. 

Germany

Ocean

• Contargo is planning to expand its inland terminal at Frankfurt’s Industriepark Hoechst by 10,000 square metres.
  • Frankfurt’s Industriepark handles barge, rail and truck transports along the Main and Rhine rivers. 
  • Extension of the terminal is expected to be complete by early 2024. 
  • This will provide more space along Northern Europe’s inland waterway terminals and the expansion will bring relief to some barge services who have at times faced long delays. 
  • However, experts have commented that bottlenecks are occurring at deep sea ports rather than inland waterways. 
  • They have commented that berthing spaces are limited and ports have prioritised container lines over barges which has contributed to delays in barge services.

Benelux

Ocean

• The Port Authorities of Rotterdam and Gothenburg have signed a green corridor deal. 
  • The agreement will establish a common framework for cooperation to promote the use of alternative fuels.
  • Both parties intend to connect the green corridor to a larger network of deep-sea corridors.
  • The aim of this is to meet the net zero 2050 goals set by the Paris Agreement. 

UK

Ocean

• Nearly 600 Liverpool port workers have voted to go on another two week strike from 24th October to 7th November. 
  • Since industrial action began on 19th September at the Port of Liverpool, over wage disputes. 
  • Since then, Peel Ports have announced that they are considering job redundancies due to a deterioration in container volumes. 
  • This has provoked a strong reaction from the union who have said that Peel Ports has “chosen to threaten jobs” instead of resolving the dispute. 

Road

• The Road Haulage Association has released its latest decarbonisation policy for commercial vehicles.
  • The policy highlights that low carbon fuels should play a critical role on the journey to Net Zero. 
  • It outlines requests to both the UK Government and the industry to help commercial vehicle operators make the transition towards Net Zero. 

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.

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

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

November 1st – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

November 2nd – Belgium*, Lithuania

November 5th – Finland, Sweden

November 9th – Spain 

November 11th – Austria, Belgium, France, Poland

November 15th – Austria, Belgium

November 16th – Germany

November 17th – Czech Republic, Slovakia 

November 18th – Croatia, Latvia 

*Not in all regions