Zencargo Market Update: 6th November 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have increased significantly and will not reduce any time soon 
  • This is because the market is busy with increased orders of e-commerce cargo.
• From NGB to Europe and the US, rates remain high and the market is tight this week.
  • This has led to flights being cancelled.
  • 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 for Korean Airlines to both destinations. 
  • Space is fully booked until 12th November to both destinations on Korean Airlines. 
  • Space on Asiana Airlines is limited but they may take bookings on a case-by-case basis. 
• From PEK to Europe and the US, hot weather continues to cause 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. 
  • Rates have increased on most airlines and space is quite limited. 
• From TAO to Europe and the US, space is tight this week but the market is stable.
  • Rates will need to be checked on a case-by-case basis. 

South China to USA and Europe:

• From CAN to Europe and the US,  space has become tight as it is peak season now.
  • 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 has become busier. 
  • 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, space is quite tight.
  • Airlines have cancelled flights to the USA and costs are increasing on this lane. 
  • Final rates depend on a case-by-case basis. 

USA

Ocean

• The Suez Canal Authority (SCA) has announced a 15% increase in fees for northbound transits in the Suez Canal, effective from January 15.
  • These fee hikes also apply to all types of vessels except ro-ro (roll-on/roll-off) ships, which will face a 5% increase.
  • Eastbound vessels returning to Asia after their last port call at the Straits of Gibraltar (e.g., Algeciras and Tanger Med) or earlier will not be subject to these fee increases.
  • Carriers operating headhaul Asia-Europe routes and certain Asia-North America east services via Suez may experience significant cost increases.
  • SCA transit fees are calculated based on vessel size, including factors like beam, draught, tonnage, and the Suez Canal Net Tonnage, which measures a vessel’s freight volume capacity.
  • Presently, fees range from $400,000 to $700,000 per transit, depending on the ship’s size, leading to potential cost increases of $60,000 to $105,000 per voyage for carriers.
  • Carriers on Asia-North Europe and Asia-Mediterranean routes may have to absorb the higher costs or consider passing them on to forwarders and shippers, possibly through new surcharges.
  • For Asia-North America trade, the fee increase might impact container supply chain dynamics, with potential shifts in route preferences and increased demand for Asia-US west coast services.

• Here is a US port congestion update:
  • The Port of Los Angeles and Long Beach (LA/LB) has seen an increase in vessel congestion, with currently 7 vessels waiting to berth.
  • This is due to vessel bunching, which has also affected the Port of Oakland, which has 3 vessels waiting.
  • Vessel bunching at LA/LB is expected to continue for at least another week. We will keep an eye on the situation and advise alternative solutions if necessary.
  • Rail dwell from all Los Angeles ports is okay, with no delays reported.
  • The Canadian West Coast ports of Vancouver and Prince Rupert are showing good turnaround times, with 2 vessels waiting at Vancouver and 0 at Prince Rupert.
  • There are still issues surrounding yard capacities at LA/LB, with both ports at 70% capacity.
  • There has been a large improvement in vessel congestion on the East Coast, with New York/New Jersey showing 2 vessels waiting and 3-day dwell on the rail.
  • There are no vessels waiting at Norfolk, Virginia, which is a first in some time.
  • The Port of Savannah is still showing some delays due to berth construction, which is expected to finish soon. Currently, there are 15 vessels waiting to berth at Savannah.

• A breakaway barge loaded with containers caused damage to a pier along Seattle’s downtown waterfront.
  • Pier 66, situated in Seattle’s downtown waterfront, houses the Bell Street Cruise Terminal and a small recreational marina.
  • To control the barge, three tugboats were deployed, and it was subsequently towed back to Terminal 115.
  • Although there were no reports of injuries or pollution, the incident resulted in damage to the pier.
  • As a precaution, nearby buildings, including the Seattle Aquarium, were evacuated.
  • For anyone who’s shipments are going through Seattle, please be aware of this situation over the next couple of weeks. 

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 50-55%, and empties remain at a low level of 30-35%.
    • At PSA 869, yard utilisation has slightly increased to 70-75%, reefers are at 50-55%, and empties are at 50-55% utilisation.
    • At AGW, yard utilisation stands at 60-55%, reefer plugs are at 50-55% utilisation, and empties are between 45-50%. The terminal has  received three additional gantries.
  • Rotterdam, Netherlands:
    • At the Europe Container terminals, yard utilisation remains at 55-60%. There are sufficient reefer plugs for the current demand. Equipment availability is at 100%. 
    • At the Rotterdam World Gateway, yard utilisation is stable at 55-60% and reefer plug utilisation is at a sufficient capacity of 50-55%.
    • Both terminals had to stop operations for a few hours last week due to dense fog. 

UK

Road

• Major haulage firms, including AJ Maiden, AR Richards, Dale Brothers, and Kinaxia Logistics, will be present at Telford College next week.
  • Aneeta Hazir, employer partnership manager at Telford College, emphasised that this free networking event is open to both employers and individuals and is suitable for anyone considering a career in logistics.
  • The event targets individuals with HGV or forklift truck licences or those working toward obtaining these qualifications.
  • The event is a job fair encompassing various aspects of careers in driving and logistics, offering attendees the chance to explore trucks on display and receive guidance from employers and recruitment agencies on a wide range of roles.
  • The event is scheduled for Wednesday, November 8, from 2 pm to 4:30 pm at Telford College’s Wellington campus.

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 9 – Spain*

Nov 11 – Austria*, Belgium, France, Poland

Nov 15 – Austria*, Belgium*

Nov 17 – Czech Republic, Slovakia

Nov 18 – Croatia, Latvia

Nov 20 – Latvia

Nov 22 – Germany*

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

*Not in all regions