Zencargo Market Update: 27th November 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates remain at a high level and space remains limited before next week. 
  • The air market is currently affected by big volumes of ecommerce cargo, therefore rates are still high. 
• From NGB to Europe and the US, space remains tight.
  • We suggest booking space 4-5 days prior to the cargo ready date.
  • 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 continue to increase for Korean Airlines to both destinations. 
  • Space is fully booked until 2nd December to both destinations on Korean Airlines. 
  • Space on Asiana Airlines is limited and rates continue to fluctuate to both destinations. 
• From PEK to Europe and the US, rates have increased on most major airlines compared to last week and space is very limited. 
  • Major services from PEK to Europe include: Singapore Airlines, Cathay Pacific, Lufthansa, Air China, KLM, Air France, Japan Airlines.
    • It is advised to book space 7-8 days ahead of the cargo ready date. 
  • Major services from PEK to the US include: Cathay Pacific, Japan Airlines, All Nippon Airways and Eva Air. 
    • It is advised to book space 9-10 days ahead of the cargo ready date. 
• From TAO to Europe and the US, space remains limited and the estimated time of departure is 4-5 days to Europe and  5-7 days to the US after booking. 
  • Rates have increased this week to both destinations. 
  • Airlines are still releasing spot rates for dense cargo but this will need to be checked on a case-by-case basis.

South China to USA and Europe:

• Compared to last week, the market has eased from CAN to Europe and the USA. 
  • 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, the market is busy 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, space is very tight and rates have increased. The market to the US is extremely busy and airlines are continuing to cancel flights. The market remains busy due to e-commerce cargo. 
  • Final rates depend on a case-by-case basis.

USA

Ocean

• MSC has implemented a $297 per TEU surcharge on shipments transiting the Panama Canal in response to capacity reductions  imposed by the Panama Canal Authority due to low water levels.
  • This announcement followed CMA CGM’s announcement of $150 per TEU, ‘Panama Adjustment Factor’, valid from 1st January.
  • The Panama Canal Authority has reduced the maximum draught of vessels transiting the canal from 14.94 metres to 13.41 metres.
  • This reduction in draught is expected to limit daily capacity through the Neopanamax locks of the canal to less than 50% of design capacity.
  • Maersk has warned shippers to prepare for potential delays and other issues due to the capacity reductions.

Benelux

Ocean

• The decline in container spot rates on the Asia-North Europe route appears to have halted.
  • Short-term rates are starting to rise, albeit from very low levels, after several weeks of consecutive 10% declines.
  • The proposed FAK rate increases and the reduced service “winter schedule” announced by the 2M alliance partners Maersk and MSC are believed to have influenced modest rate recovery on the trade lane.
  • However, it remains to be seen whether carriers will refrain from further rate discounting.

Germany

Air

• Lufthansa Cargo is redeveloping its Frankfurt hub with a new warehouse system as part of its LCCevolution project.
  • The project includes the construction of a new high-bay warehouse, an automated transport system, and new building modules in the north of the airport.
  • Work on the hub started in August, and the first parts of the project are expected to be completed between 2023 and 2027.
  • The entire project is expected to be completed by 2030 and will cost €500m.
  • The new warehouse system is expected to improve handling speeds, transport processes, and service quality.
  • Lufthansa Cargo has been planning to upgrade its Frankfurt infrastructure for a number of years and have now opted for a phased approach to improve its existing centre rather than creating a new building from scratch.

UK

Road

• Fuel duty has been frozen for the 13th consecutive year, according to the Autumn statement, with no mention of extending a temporary 5p per litre cut set to expire in March.
  • The Road Haulage Association (RHA) is “delighted”with the announcement, saying it will help hauliers facing significant cost pressures
  • The RHA highlighted a nearly 10% increase in the cost of operating Heavy Goods Vehicles (HGVs) over the past year, despite thin average profit margins of just 2%. 
  • This rise is attributed to challenges such as reduced industry activity, decreased freight volumes (down by 10%), and increased insolvencies with reduced profitability.

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.

Nov 30 – Romania

December 1 – Portugal, Romania

December 4 – Spain*

December 6 – Finland, Spain

December 8 – Austria, Italy, Malta, Portugal, Spain

December 13 – Malta

December 24 – Austria*, Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Luxembourg*, Slovakia, Sweden*

December 25 – Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta*, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

December 26 – Austria, Belgium*, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France*, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain*, Sweden

December 27 – Bulgaria, Ireland (Eire)*

December 31 – Latvia, Sweden*

January 1 – Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

Jan 2 – Romania, Slovenia

Jan 6 – Austria, Croatia, Cyprus, Finland, Germany*, Greece, Italy, Poland, romania, Slovakia, Spain, Sweden

Jan 7 – Romania

Jan 24 – Romania

*Not in all regions