Zencargo Market Update: 7th August

China

Ocean

• Typhoon Kanu has caused delays for ports in eastern China.
  • The average berth time at Ningbo is currently 1.5 to 3 days.
  • Latest reports indicate that empty container pick-up and drop-off has been halted since the 3rd August, while operations laden containers will proceed as normal.
  • Delays are anticipated for shipments from Ningbo as operations are scaled back.
• It is anticipated that China’s export figures for July will reflect another month of contraction.
  • According to a poll conducted by Reuters, the median forecast from 28 economists estimates a 12.5% fall in outbound shipments from a year earlier.  In June, there was a 12.4% contraction. 
  • This coincides with a fourth straight month of falling activity levels for factories in China. 

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have risen slightly.
  • Ongoing C-Checks (aircraft compliance checks) have resulted in some flight rescheduling and cancellations; however, due to low cargo volume, rates have only risen slightly.
• From NGB to Europe and the US, rates have remained stable. 
  • 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 remained mostly stable this week.
  • Rates for Asiana flights have increased though.
• From PEK to Europe and the US, rates have remained stable this week. 
  • Adverse weather conditions could potentially cause some delays this week.
• From TAO to Europe and the US, rates have remained stable this week.

South China to USA and Europe:

• From CAN to Europe and the US, 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, rates have remained stable, while to the US, rates have decreased slightly. 
  • 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 imports from China were down by 24% in the first 5 months of 2023 when compared with the same period in 2022.
  • This fall has been attributed to a global slowdown in trade in the face of economic headwinds and political tension between the two nations.
  • Reshoring has been growing amongst US importers with Mexico usurping China as the US’s largest trading partner earlier this year. 
  • While there has been increasing discourse surrounding a Western powers shift away from sourcing products from China, countries such as Germany and France have remained fairly steady. 

Canada

Ocean

• The International Longshore and Warehouse Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) have ratified a new labour agreement, ending weeks of uncertainty. 
  • This is the third proposed agreement between the ILWU and BCMEA, with the first two being rejected by the ILWU membership. 
  • It is estimated that the dispute between the BCMEA and ILWU disrupted billions of dollars worth of trade, with 30 ports impacted.
  • Following the agreement, it is anticipated that delays will be ongoing as the backlog of ships continues to be processed.

UK

Ocean

• Here is an update on operations at UK ports
  • Southampton Port is operating with no delays currently and yard levels stand at 55-60%. 
  • London Gateway Port is experiencing minimal delays due to expansion construction with yard levels at  50-55% utilisation. 

Road

• The RHA is to meet with UK government officials regarding the Windsor Framework.
  • The RHA is seeking clarity on the new framework from the government, regarding how the scheme will work in practise 
  • Chief among the concerns are how the red and green light system will operate and how the Trusted Trader Scheme will operate.

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.

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

Oct 5 – Portugal

Oct 9 – Spain*

Oct 10 – Austria*

Oct 12 – Spain

Oct 23 – Hungary

Oct 26 – Austria

Oct 28 – Cyprus, Czech Republic, Greece

Oct 30 – Ireland (Eire)

Oct 31 – Germany*, Slovenia

Nov 1 – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

Nov 2 – Belgium*, Lithuania

Nov 4 – Finland, Sweden

Nov 9 – Spain*

Nov 11 – Austria*, Belgium, France, Poland

Nov 15 – Austria*, Belgium*

Nov 17 Friday Czech Republic, Slovakia

Nov 18 – Croatia, Latvia

Nov 20 – Latvia

Nov 22 – Germany*

Nov 30 – Romania

*Not in all regions