Zencargo Market Update: 4th December 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, bookings for e-commerce cargo are decreasing and rates have stopped increasing. 
  • Rates remain at the same level as last week.
• From NGB to Europe, space is tight and final rates depend on a case-by-case basis. 
  • We suggest booking space 4-5 days prior to the cargo ready date.
• From NGB to the USA, the market is more stable 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 continue to increase for Korean Airlines to both destinations. 
  • Space on Asiana Airlines is limited and rates continue to fluctuate to both destinations. 
  • In order to secure space, we recommend you book a week in advance. 
• 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  5-6 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, rates have decreased CAN to Europe and remained the same from CAN to the USA. The market may become busy again this weekend or by next week. 
  • 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 and the US, the market remains the same as last week. 
  • Space continues to be limited. 
  • Final rates depend on a case-by-case basis.

USA

Ocean

• Due to the ongoing drought, the Panama Canal will be implementing a surcharge on all cargo transiting the canal starting January 1, 2024.
  • The surcharge will be $130 per TEU for HPL, $297 per TEU for MSC, and $150 per TEU for CMA.
  • The surcharge is being implemented due to the low water levels in the lakes surrounding the canal.
  • The further reduction in daily transits through the bigger neopanamax lock as from January 2024 by 30% is worrying carriers.
  • Hapag-Lloyd CEO Rolf Jansen said in a reaction to a question from Alphaliner last week that the situation in Panama is of concern to him. The German carrier is closely monitoring the situation to see if one or more loops should possibly have to be re-routed via the Suez Canal.

Benelux

Ocean

• On the Asia – Europe trade lane, space availability is a concern in December. 
  • Vessels are full three weeks ahead of schedule, and bookings need to be made well in advance.
  • Due to the lack of space, blended buys may reflect higher rates as carriers try to mitigate for backups.
  • Carriers are blocking space ahead of time even without bookings received to ensure capacity.
  • Blank sailings continue to disrupt schedules and transit times. Carriers are mitigating with contingency options, but booking in advance is recommended to ensure space availability.
  • Equipment availability is generally good between Asia – Europe. 
• On the Asia – Europe trade lane, space availability is a concern in December. 
  • Vessels are full three weeks ahead of schedule, and bookings need to be made well in advance.
  • Due to the lack of space, blended buys may reflect higher rates as carriers try to mitigate for backups.
  • Carriers are blocking space ahead of time even without bookings received to ensure capacity.
  • Blank sailings continue to disrupt schedules and transit times. Carriers are mitigating with contingency options, but booking in advance is recommended to ensure space availability.
  • Equipment availability is generally good between Asia – Europe. 
• A terminal update from Hapag Lloyd:
  • PSA 913: Yard utilisation is steady at 65%-70%. Reefer utilisation is at 75%-80%. Empty container utilisation is at 25%-30%.
    • PSA 869: Yard utilisation has decreased to 55%-60%. Reefer utilisation is at 40%-45%. Empty container utilisation is stable at 40%-45%. Civil works at PSA 869 are resulting in a ~400 metre reduction of berths, but this is not having a negative impact on operations. Bollard works are ongoing at PSA 913, with completion expected on 08/12.
    • AGW: Antwerp Gateways yard utilisation is at 50%-55%. Reefer plug utilisation is steady at 55%-60%. MT yard utilisation is at 30%-35%. The terminal has received 3 additional Gantries which are fully operational.
  • Rotterdam Container Terminal Utilisation
    • ECT: Yard utilisation has reduced again after last week’s peak to a good operational level of 60%-65%. There are sufficient reefer plugs for the current demand. Empty stocks are under control. Labour is facing challenges this week as all terminals in Rotterdam are having a busy week.
    • RWG: Yard utilisation is stable at 55%-60%. Reefer plug utilisation is at 50%-55%, with sufficient capacity.

UK

Road

• A report from the Green Finance Institute (GFI) has stated that HGVs are among the UK’s most polluting vehicles.
  • According to the report titled “Delivering net zero: unlocking public and private capital for zero emission trucks,” electrifying every  HGV would have an impact equivalent to taking 12 million cars off the road.
  • The report advocates for providing operators with financing options to acquire Zero Emission Trucks (ZETs) and expediting the expansion of electric charging infrastructure.
  • It details ten financial strategies essential for decarbonising the freight sector. These include employing utilization-linked financing (ULF) to mitigate investment risks in charging infrastructure, whether through loans or asset finance.
  • Additionally, the report suggests implementing shared charging infrastructure agreements to enable operators to collaborate on resources. and recommends using government or third-party-backed residual value (RV) guarantees to alleviate operators’ financial burdens.

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