Zencargo Market Update: 5th June

China

Ocean

• Dwell time of exports at Chinese ports has fallen 62% year-on-year to less than 5 days according to new data from Fourkites.
  • Transit time from China to the US has also fallen drastically from 55 days to less than 36. Although this could soon be on the rise again as carriers increase slow steaming to manage capacity. 
• Throughput at Chinese ports has risen 4.8% year-on-year for Q1, with a total of 95.4 million TEUs.
  • It is interesting to note that while throughput at China’s ports jumped 11.8% year on year for April, exports to the US have declined by 44% over the same period. 
  • The increase of exports of electric passenger vehicles, aeroplanes and soybeans contributed to this rise in export figures. 
  • The busiest port by throughput was Tianjian in Northern China.

Air

Central China to USA and Europe 

• From SHA to Europe rates have increased slightly, while rates to the US have remained stable.
• From NGB to Europe, rates have fallen  compared with last week,  while rates to the US 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 decreased slightly this week. 
  • We recommend booking 3 -4 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 rates have decreased this week, while to the US rates have remained stable.
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe rates have remained stable while rates to the US have increased slightly this week. 
• From CKG to Europe have remained stable, while rates to the US have increased slightly since last week. 

South China to USA and Europe 

• From  CAN to Europe and the USA, rates have remained stable this 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 rates have decreased slightly this week.
  • 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.

USA

Ocean

• US warehousing costs continue to rise despite declining demand.
  • According to Prologis, a real estate investment trust, rents are expected to rise by 10% this year. 
  • This forecasted rent increase however conflicts with the national vacancy rate, which has climbed 0.5% to 3.5% in the last quarter, reaching the highest level in 14 years. 
  • Rent prices on average have already registered an 11% year on year increase for Q1.

Benelux

Ocean

• The Port of Antwerp and Bruges has completed its first menthol bunkering.
  • This is the latest step towards the port becoming a multi fuel port. 
  •  The port aims to become a fully fledged multi fuel port by 2025 offering low-carbon alternatives such as methanol, hydrogen or electricity.
  • As the shipping industry shifts to more alternative fuel sources, port investments in multi fuel bunkering capabilities and infrastructure will continue to grow.

UK

Ocean

• Hutchison Ports has set a net zero target of scope 1 and 2 emissions by 2035
  • Hutchinsons Ports operates the Ports of Felixstowe, Harwich International and London Thamesport. 
  • To achieve this goal the port is investing in more sustainable equipment such as electric tractors and battery powered autonomous trucks. 
  • The Port of Felixstowe signed a new deal in April which ensures that all the electricity it uses is certified as being generated by solar, offshore wind or other renewable sources.

Road/Rail

• The government has been called on for more investment into electric charging stations for trucks.
  • The government has pledged to stop new diesel sales of vehicles under 26 tonnes by 2035 and all HGVs from 2040.
  • It’s estimated 2,450 HGV charging points would be needed by 2025 to make electric vehicles feasible.

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.

June 5 – Cyprus, Denmark*, Greece, Ireland (Eire), Romania

June 6 – Sweden

June 7 – Malta

June 8 – Austria, Croatia, Germany*, Poland, Portugal, Spain*

June 9 – Spain*

June 10 – Portugal

June 13 – Portugal*, Spain*

June 22 – Croatia

June 23 – Estonia, Finland*, Latvia, Luxembourg, Sweden*

June 24 – Estonia, Finland*, Latvia, Luxembourg, Spain*, Sweden*

June 25 – Slovenia

June 29 – Italy*, Malta, Spain*

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*

*Not in all regions