Zencargo Market Update: 7th October 2024

Ocean

• Capacity remains relatively stable, with moderate improvements in booking flexibility. Space is becoming easier to secure with a 1-2 week lead time, while rates have also softened.
• Schedule reliability has been improving in the trade but still below 50% and delays continue to affect several Chinese ports due to post-Typhoon effects. 
• Shanghai is experiencing 144-168 hour wait times, Qingdao 12-24 hours, and Yantian between 12-36 hours.
• ONE Line announced new services including services from Asia to Europe.East-West Service via Cape of Good Hope Effective February 2025) include: 

• Asia-North Europe:
  • 7 service options covering 21 ports in Asia and 6 ports in North Europe. Key routes include direct connections to major ports in Japan, China, and Southeast Asia.
• Asia-Mediterranean:
  • 5 services covering 15 Asian ports and 16 Mediterranean ports, with strong connections to Eastern and Western Mediterranean regions.

• East-West Service via Suez (Effective February 2025) include:
  • Asia-North Europe:
    • 7 services connecting 21 Asian ports, 6 European ports, and additional coverage in the Middle East and Mediterranean. 
  • Asia-Mediterranean:
    • 5 services covering 14 ports in both Asia and the Mediterranean and calling at 1 port in the Middle East. 

Air

Note* update as of Week 40

Central China (SHA/NGB) to Europe:

• Shanghai (SHA): The period before Golden Week finished fully booked. Space remains tight, and rates are expected to remain stable with slight increases after the holiday. It is advised to book space at least one week in advance​.
• Ningbo (NGB): Freight rates rose before Golden Week as space remains very tight.  The earliest available space is from Oct. 7 onward. It’s recommended to check spot rates case by case and book early.

North China (DLC/TSN/PEK/TAO) to Europe:

• Tianjin (TSN): Market conditions are stable, though some airlines cancelled flights during the holiday.
• Dalian/Beijing (DLC/PEK): Major airlines like SQ, CX, and LH are maintaining stable rates. Dense cargo may apply for spot rates, but bookings should be made 7-10 days in advance. Space is available after Oct. 8.
• Qingdao (TAO): The market dropped last week due to the holiday, though bookings will be available again from this week.

South China (CAN/SZX/XMN) to Europe:

• Guangzhou (CAN): Rates were discounted during the holiday, but space is only available after the holiday.
• Shenzhen (SZX): The market is stable, with consistent rates for deferred services to major European airports. Bookings should be checked case by case.
• Xiamen (XMN): Some schedules were cancelled before the holiday, and space remains tight. 

Ocean

• After a tense buildup, a tentative agreement has been made to end the three-day ILA strike that disrupted port operations along the EC and Gulf ports. The agreed deal includes a substantial wage increase of approximately 62% for the workers.
  • Both parties will continue negotiations on outstanding issues, but measures are in place to ensure labour stability in the short term.
  • Port operations are anticipated to return to normal as early as Friday morning, minimising further delays in cargo handling and shipping.
  • Sea Intelligence reports that the 3-day strike will result in vessel delays, causing a 10-20% capacity decline in the Transatlantic and Asia-USEC trades, in the coming weeks.

Air

Note* update as of Week 40

Central China (SHA/NGB) to USA

• Shanghai (SHA): Space was tight before the holiday, with all shipments for the week already booked. Rates are expected to increase slightly after the holiday, and spot rates will be available from Oct. 5-8. Book space at least one week in advance​.
• Ningbo (NGB): Space has been tight, and there has been a slight increase in freight rates. The earliest available space is after Oct. 7. It’s recommended to check case by case​.

North China (DLC/TSN/PEK/TAO) to USA:

• Tianjin (TSN): Space is tight, with high rates from KE and OZ, but bookings are being accepted on a case-by-case basis post-holiday.
• Dalian/Beijing (DLC/PEK): Major airlines like CX, JL, and NH are maintaining high rates due to demand. Spot rates are available for dense cargo, but bookings need to be made well in advance​.
• Qingdao (TAO): Rates to the US have dropped last week due to the holiday. Airlines have released spot rates for bookings this week.

South China (CAN/SZX/XMN) to USA:

• Guangzhou (CAN): Rates were discounted for the holiday, with space now available again.
• Shenzhen (SZX): Rates are stable but bookings must be confirmed case by case.
• Xiamen (XMN): Some schedules were cancelled during the holiday, and space is still tight.

Ocean

• Rates from India and Bangladesh decreased in the first half of October, particularly from India. However, carriers are still working through a backlog of bookings.
• Disruptions continue at the Port of Chittagong due to political unrest and recent flooding, overwhelming inland depots.

Ocean

• Despite the averted strike, demand increased in recent weeks as shippers accelerated cargo in anticipation.
• The brief U.S. East Coast strike created severe congestion, with 60 vessels queuing for berths across ports​. Delays are likely to persist for the next few weeks as operations ramp back up.
• We should expect to  see delays in cargo release, chassis shortage, and difficulties in getting haulage as operators try  to deal with vessels that have been waiting as well as new vessels that continue to arrive.
• Rates remain elevated as capacity tightens, especially from Northern Europe to the U.S., where congestion was most severe​.
• There remains a possibility of surcharges, based on force majeure conditions, despite standard rules from the FMC applying. 

USA

These figures were recorded on 1st October prior to the ILA strikes:

• Los Angeles/Long Beach: 6 vessels waiting, 11-day rail dwell, yard capacity at 64%.
• Oakland: 4 vessels waiting, 6-day rail dwell.
• Seattle/Tacoma: 5 vessels waiting, 12-day rail dwell.

• New York/New Jersey: 4 vessels waiting, 4-day rail dwell, yard capacity at 71%.
• Norfolk: 4 vessels waiting, 4-day rail dwell.
• Savannah: Significant improvement with only 2 vessels waiting and a 2-day rail dwell​

• Norfolk: 4  vessels are waiting with a 4-day dwell​.

Benelux

Antwerp, Belgium 

• PSA 913: Yard at 70 – 75% utilisation with reefers at 65 – 70%.
• PSA 869: Yard at 70 – 75% utilisation and reefers at 60 – 65%.
• AGW: Yard at 70 – 75%. Reefers at 70 – 75% utilisation. Terminal operating with cargo opening times 5 days prior to vessel ETA.

Rotterdam, Netherlands

• ECT: Yard at 65 – 70% utilisation.
• RWG: Yard at 70 – 75% utilisation.

United Kingdom

Road/Rail

• With less than four weeks until the EU’s entry/exit system (EES) is scheduled for implementation, Logistics UK has raised concerns about the lack of adequate testing. 
• The business group has warned that untested systems could severely impact import trade, particularly across the Short Straits, a critical supply chain route between the UK and the EU. Delays in biometric border checks for non-EU nationals could lead to significant congestion, costing hauliers up to £1,100 per truck.

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.

October 9 – Spain*

October 10 – Austria*

October 11: Macedonia

October 12: Spain

October 14: Moldova*

October 23: Hungary, Macedonia

October 26: Austria

October 28: Cyprus, Czech Republic, Greece, Ireland (Eire), Türkiye*

October 29: North Cyprus, Türkiye

October 31: Germany*, Slovenia

November 1: Andorra, Austria, Belgium, Bosnia and Herzegovina (FBiH), Croatia, France, Germany, Holy See (Vatican City), Hungary, Italy, Liechtenstein, Lithuania, Luxembourg, Monaco, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Switzerland*

November 2: Belgium*, Finland, Lithuania, San Marino, Sweden, Åland (Ahvenanmaa)

November 3: Russia

November 4: Russia

November 7: Belarus, Transdniestria (PMR)

November 8: Belarus

November 9: Spain*

November 11: Austria*, Belgium, France, Poland, Serbia

November 13: Montenegro

November 15: Austria*, Belgium*, North Cyprus, Saint Helena

*Not in all regions