Zencargo Market Update: 21st November

China

Ocean

• Freight rates to Europe, South America, the middle East, Australia and New Zealand have fallen sharply this week, with more moderate falls to West Coast USA.
  • For US shipping the East Coast rate is more stable than West Coast.
  • US imports from China remain at the same levels as September.
• Carriers have continued to issue blank sailings. 
  • As mentioned above Maersk/Zim have suspended another line, TP23 Asia to US East Coast.
• Lockdown as a result of Covid outbreaks and testing are causing some delays to factories and ports in China. 
  • In Fuzhou, Fujian province,  a covid outbreak has forced a few factories to shut down. 
  • In Ningbo, which serves Zhejiang and Jiangxi provinces, Covid testing will now take place every two days so delays are anticipated.

Air

Central China to USA and Europe 

• From SHA to Europe and the USA  rates have decreased 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. 
• From NGB to the USA , rates have increased 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.
  • 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.
  • 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 urgent shipments to Europe we advise providing the cargo ready date, reconfirm rate and book 4 to 5 days in advance. 
  • 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 remained stable compared to last week.
• From TAO to the USA, rates have remained the same this week compared to last week.
  • ETD for new bookings is the 24th November.
• From CKG to Europe rates have remained stable compared with last week , while rates to the USA have seen a slight increase.
  • Qantas is able to provide direct flights to Chicago and special rate direct flight to Los Angeles. 

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 and the USA  rates have remained the same compared to last week. Rates can be negotiated with carriers on a case-by-case basis.

India

Ocean

• Volume has continued to decline this week due to reduced demand and continued impacts of 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.

USA

Ocean

• Import volume of container freights to Port of Los Angeles and Port of Long Beach is currently 26% lower than 2021.
  • This marks the lowest throughput entering the ports since May 2020.
  • Analyst attribute this to excess inventory and poor consumer demand in the run up to Black Friday sales and Christmas.
    • Inventory to sales ratio have reached the highest level in decades forcing importers to reduce shipment volumes from overseas suppliers.
    • US personal consumption expenditure grew at a quarter on quarter annual rate of 1.4%.
• Port congestion has eased with 68 vessels currently waiting, down from 87 last week.
  • As congestion eases this will free up more capacity in the market. 

Benelux

Ocean

• The Port of Rotterdam has partially closed the Scheur river until the 25th of November.
  • The closure is due to construction work being done for the Maasdelta Tunnel.
  • Ships have been advised to moderate speed with expected  minor delays on the 25th November as the river will be fully closed for 15 to 20 minutes.
  • The river will be fully closed on the 31st of March and the 15th of April 2023 as construction continues. 

UK

UK 

Ocean

• Capacity is set to increase from Northern Europe as two new vessels are introduced to Transatlantic trade lane.
  • Analysts have predicted this will put downward pressure on rates. 
  • It is also important however to bear in mind that winter conditions can have adverse impacts on schedules and therefore capacity 
  • Current schedule reliability stands at 34%. 
• As industrial action was called off last week at the Port of Liverpool, Unite Union has claimed to receive an overall pay increase of 14% – 18% in their recent agreement with Port operators Peel Ports. 

Road

• The DVSA has announced from April 2023, rolling tyres fitted to steering axles will be classed as a major deficiency during annual tests. 
  • These changes have potential to sideline vehicles as this change to regulations  would see vehicles fail the annual test where previously they could be issued with an advisory.
• Bristol is launching a clean air zone which will come into effect on Monday 28th November. 
  • Non compliant HGV’s face charges of £100 per day.

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