Zencargo Market Update: 19th June

China

Ocean

• Terminals in Ningbo, Shanghai and Qingdao are experiencing delays of up to 2.5 days due to vessel bunching and bad weather conditions. 
• Rates from the far east to Europe and the US have continued to fall.
  • According to Drewry, from Asia to North Europe, the average spot rate is now more than 80% lower than a year ago. 
  • According to Xeneta, rates from Asia to both US west and east coasts also continued to fall this week. 
  • However rates from Asia to the Mediterranean have remained surprisingly stable and resilient. 

Air

Central China to USA and Europe 

• From SHA to Europe rates and the US rates have increased.
  • Rates to AMS have increased significantly as flights have been cancelled due to C-Check’s (circraft compliance checks). 
  • There has also been a large volume of E-commerce products which has contributed to the rise in rates 
• From NGB to Europe rates have increased while to the US rates 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 remained stable 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 increased slightly this week. 
  • This is due to an upcoming holiday which has caused some flights to be cancelled and space to be restricted. 
• From CKG to Europe rates have remained stable while to the US, rates have risen slightly. 

South China to USA and Europe 

• From  CAN to Europe and the USA, rates have remained stable this week.
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From SZX to Europe rates have decreased, while to the US rates have increased slightly this week.
  • 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.

India

Ocean

• The Port of Mundra is semi-operational following Cyclone Biparjo.
  • Delays are expected as operations return to normal although no significant damage to equipment or infrastructure has been reported. 
  • Currently vessel movements are still restricted and berthing delays are anticipated.

USA

Ocean

• US inventory levels remain stubborn despite 9 consecutive months of year-on-year decreases in containerized imports.
  • Between September 2022 to February 2023, global container demand dropped by -12%.
  • Sales data continues to decline and inventories appear to remain high although the extent of the glut is dependent upon the sector. 
• The ILWU and PMA have made a tentative agreement in their protracted contract negotiations.
  • The agreement includes a one time payment as well as a 32% salary increase spread across the 6 year contract period.
  • Analysts are optimistic this will draw an end to a tumultuous 12 months for west coast ports, plagued by disruption from industrial action. 

Benelux

Ocean

• The Port of Rotterdam was the victim of a cyberattack last week by pro russian hackers.
  • The attack was a response to the Dutch government’s decision to purchase tanks to support Ukraine.
  • No data was stolen, however the port website was down for a day and authorities experienced disruption for 2 days.
  • As the supply chain industry becomes more and more digital, events such as these demonstrate the growing importance of cyber security in the industry.

UK

Ocean

• Peel ports has invested £10m in new outer lock gates at the Port of Liverpool.
  • The new gates will play a key role in enabling the safe navigation of local vessels and are aimed at improving operational efficiency.
  • The Port of Liverpool is also set to receive a new £28 million warehousing facility which was announced earlier in the year. 

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.

June 22 – Croatia

June 23 – Estonia, Finland*, Latvia, Luxembourg, Sweden*

June 24 – Estonia, Finland*, Latvia, Luxembourg, Spain*, Sweden*

June 25 – Slovenia

June 29 – Italy*, Malta, Spain*

July 5 – Czech Republic, Slovakia 

July 6 – Czech Republic, Lithuania

July 11 – Belgium*

July 14 – France

July 21 – Belgium

July 25 – Spain*

July 28 – Spain*

Aug 5 – Croatia, Spain*

Aug 7 – Ireland (Eire)

Aug 14 – Romania*

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

Aug 20 – Estonia, Hungary

Aug 29 – Slovakia

Sep 1 – Slovakia

Sep 2 – Spain*

Sep 4 – Luxembourg*

Sep 6 – Bulgaria

Sep 8 – Malta, Spain*

Sep 11 – Spain*

Sep 15 – Slovakia, Spain*

*Not in all regions