Zencargo Market Update: 3rd July

China

Ocean

• Chinese port throughput has achieved positive growth between Jan and May 2023.
  • Between Jan and May, Chinese ports handled 122 million TEUs, representing a 4.8% increase year-on-year. 
  • Mainland Chinese ports dominate throughput figures with six of the top ten ports by volume handled. 
  • This volume increase comes at a time when demand in Europe and the UK has been falling, demonstrating the growth in Intra-Asia trade to fuel the continued growth of throughput at Chinese ports.
• The Chinese manufacturing PMI (purchasing managers index) which measures overall factory activity has contracted for the third consecutive month.
  • For June, the manufacturing PMI stood at 49, a slight increase from 48.8 in May but still below the 50 point threshold which separates contraction and growth. 
  • The PMI figures reflect weak global demand and a sluggish post COVID recovery.

Air

Central China to USA and Europe 

• From SHA to Europe rates and the US rates have increased.
  • Rates have increased due to C-Check’s (circraft compliance checks) and poor weather restricting the amount of available flights. 
  • 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 1 -2 days prior to the cargo ready date for shipments to Europe.
  • We recommend booking 2 -3 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 remained stable this week.
• 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 increased slightly this week.
  • This is due to the holiday season increasing the amount of tourists which will restrict air freight availability. 
  • 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 slightly, while to the US rates have remained stable.
  • 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 operational but still experiencing delays following Cyclone Biparjo.
  • There are currently rail and road delays between the port and inland terminals.

USA

Ocean

• Congestion at US West Coast ports  has eased meanwhile issues have arisen on the east coast.
  • There has been significant congestion at the Norfolk terminal at the Port of Virginia.
  • Currently, there are 21 vessels waiting to berth which has been caused by vessel bunching.  
  • Vessels are exploring options to divert to neighbouring ports to avoid the congestion. 
  • Meanwhile at the Port of Long Beach and LA congestion has eased to 4 vessels waiting to berth down from 12 two weeks ago, which was the highest level in 2023. 
• The Port of New York handled 5% more cargo in May 2023 than in May 2019.
  • This also represents a 4.3% increase on April figures. 
  • This increase compared with pre pandemic levels gives an indication of the volume which has been diverted from West Coast to East Coast US ports.
  • In 2023 the port has so far handled 1.6 million TEU and is the second busiest in terms of loaded imports.

Benelux

Ocean

• The Port of Rotterdam will undertake a phased expansion of Rotterdam World Gateway (RWG).
  • The port, which is the largest in Europe, will invest approximately € 500 million and initially includes civil works, quay cranes, storage modules with automatic stacking cranes and electrical automatic guided vehicles.
  • Construction is already underway and it is expected to be commercially operational by 2026.

UK

Ocean

• There have been calls for more investment in UK ports to pave the way to becoming a global leader in achieving net-zero.
  • Paul Olvhoj, Business Development Manager at Orkney Future Ports that investment in UK ports is essential to help support the offshore wind sector.
  • Ports across the UK have increasingly been investing in more sustainable technology such as electric forklifts and tugboats which utilise alternative fuels.

Road/Rail

• The HGV levy is due to return on the 1st August.
  • If you operate HGVs over 12,000kg on a motorway or ‘A’ road you must pay the charge.
  • The levy will now be charged based on a  vehicle’s weight and emissions. 
  • For vehicles registered in the UK the levy will need to be paid annually or biannually.

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.

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*

Sep 18 – Switzerland*

Sep 20 – Germany*

Sep 21 – Malta

Sep 22 – Bulgaria

Sep 24 – Austria*

Sep 25 – Switzerland*

Sep 27 – Belgium*, North Cyprus

Sep 28 – Czech Republic

Oct 1 – Cyprus, San Marino

Oct 3 – Germany

*Not in all regions