Zencargo Market Update: 25th September 2023

China

Ocean

• Container spot rates from China and Asia to North Europe have dropped to half their value in three weeks. 
  • The speed of the rate collapse on the Asia-North Europe route is compared to the price wars of 2015/2016.
  • The last time spot rates were this low for North Europe was in early 2018.
  • Asia-North Europe carriers are struggling with balancing demand and supply despite blanking sailings for consecutive weeks.
  • Container market sentiment is deteriorating, and freight rates continue to slip with little hope for a rate rebound in October.
  • Capacity cuts planned for the Golden Week holidays in October are insufficient to halt the rapid rate decline.
  • THE Alliance members have suspended their PN3 Asia to North America loop due to market conditions.

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates are increasing until the weekend.
  • Because of the Asia games, security will be closed in CGO, WUH, EHU and PVG for oversized cargo. 
  • Because of China’s Golden Week and the Mid Autumn Festival, the space from now until 4th October is tight. 
  • We advise shippers to make bookings earlier to block space. 
• From NGB to Europe and the US, rates have increased this week 
  • The 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 increased this week. 
  •  Space is fully booked before the national holiday. 
• From PEK to Europe and the US, hot weather is currently causing loading issues. 
  • Major services from PEK to Europe include: Singapore Airlines, Cathay Pacific, Lufthansa, Air China, KLM, Air France, Japan Airlines.
  • Major services from PEK to the US include: Cathay Pacific, Japan Airlines, All Nippon Airways and Eva Air. 
  • Space is fully booked from both PEK to Europe and the US. 
• From TAO to Europe and the US, space has become quite tight. 
  • There is no space available until 1st Oct from TAO to Europe. 
  • Rates should be checked on a case-by-case basis as the market is not stable.

South China to USA and Europe:

• From CAN to Europe and the US, the market is in peak season so space is very tight. 
  • 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 increased and space is tight. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From XMN to Europe, the market is busy this week and space is short but rates remain stable.
  • To the US, rates remain almost the same as last week but space is still quite tight due to disruptions caused by a typhoon.

USA

Ocean

• Despite Panama Canal transit restrictions, carriers have increased capacity on the Far East to US East Coast  route by 20% since the end of August.
  • Average capacity deployed in the last 5 weeks reached 246,000 TEU, up from 204,000 TEU in the preceding 5 weeks.
  • Capacity utilisation has dropped to 85% during this time.
  • Carriers have cancelled 40% of sailings in week 41, coinciding with vessel departures after the Golden Week holidays.
  • However, the supply overhang remains a challenge for carriers. 

Benelux

Ocean

• Here are some recent port updates from Hapag-Lloyd:
  • Antwerp, Belgium:
    • At PSA 913, yard utilisation has increased to 65-70%, while reefers remain at 70-75%, and MTs remain at a low level of 30-35%.
    • At PSA 869, yard utilisation has slightly increased to 55-60%, reefers are at 45-50%, and MTs are at 55-60% utilisation.
    • At AGW, yard utilisation stands at 45-50%, reefer plugs are at 45-50% utilisation, and MTs are between 45-50%. The terminal is set to receive three additional gantries, which will be fully operational this month. 
  • Rotterdam, Netherlands:
    • At the Europe Container terminals, yard utilisation remains at 55-60%. There are sufficient reefer plugs for the current demand. Equipment stocks are now under control and equipment availability is at 100%.
    • At the Rotterdam World Gateway, yard utilisation is stable at 60-65% and reefer plug utilisation is at a sufficient capacity of 50-55%.

UK

Road

• Prime Minister Rishi Sunak’s announcement to postpone the ban on the sale of new diesel and petrol cars to 2035 has caused concern in the logistics sector.
  • The Road Haulage Association (RHA) criticised the lack of a clear plan from the government, seeking “urgent clarity” on the impact of the announcement on the future of heavy goods vehicles (HGVs).
  • The RHA called for collaboration between the government and the industry to develop a detailed plan that provides investment certainty, encourages innovation, and supports those aiming for sustainability.

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.

Sep 25 – Switzerland*

Sep 27 – Belgium*, North Cyprus

Sep 28 – Czech Republic

Oct 1 – Cyprus, San Marino

Oct 3 – Germany

Oct 5 – Portugal

Oct 9 – Spain*

Oct 10 – Austria*

Oct 12 – Spain

Oct 23 – Hungary

Oct 26 – Austria

Oct 28 – Cyprus, Czech Republic, Greece

Oct 30 – Ireland (Eire)

Oct 31 – Germany*, Slovenia

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

Nov 2 – Belgium*, Lithuania

Nov 4 – Finland, Sweden

Nov 9 – Spain*

Nov 11 – Austria*, Belgium, France, Poland

Nov 15 – Austria*, Belgium*

Nov 17 Friday Czech Republic, Slovakia

Nov 18 – Croatia, Latvia

Nov 20 – Latvia

Nov 22 – Germany*

Nov 30 – Romania

*Not in all regions