Zencargo Market Update: 9th May

China

Ocean

• China’s imports experienced a sharp decline in April, while exports continued to rise although at a slower pace. 
  • Imports to China were down 7.9% year-on-year, while exports grew by 8.5%. 
  • This follows a contraction of Chinese factory activity for April as the official manufacturing purchasing managers’ index (PMI)dropped from 51.9 to 49.2. 
  • Analysts have said this could be an indication of a slower than expected recovery following the lifting of Covid restrictions. 
• COSCO Ports has revealed throughput has fallen at terminals which focus on foreign trade.
  • Ports in Yangtze River Delta (including Shanghai), Pearl River Delta and Southeast coast saw throughput declines. 
  • This declining throughput represents a slowdown in global trade growth. 

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have mostly remained stable, although there has been change on certain lanes.  
• From NGB to Europe rates have remained stable compared with last week,  while rates to the US have decreased.
  • Final rate is offered on a case by case basis.

North China to USA and Europe 

• From TSN to Europe rates have decreased this week, while rates to the US have remained stable. 
  • 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 rates to the US have remained stable. 
  • Space to the US is still constrained. 
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe rates have decreased this week, while rates to the US have increased for most airports.
• 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 decreased this week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From SZX  to Europe have remained stable, while rates to the US have decreased slightly since last week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From XMN to Europe rates have remained stable this week, while rates to the US have decreased.
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.

USA

Ocean

• US import figures for April show a 9% increase month-on-month.
  • While this reflects an 18% year-on-year decline, compared with April 2019, 2023 figures show a 5% increase. 
  • This month-on-month growth has largely been spurred on by a rise in imports from China reversing a recent downward trend, up 27% month-on-month.
• The US Federal Maritime Commission (FMC) has announced that more than $1m of disputed charges to shippers and forwarders have been waived or refunded since the passing of the  Ocean Shipping Reform Act (OSRA) last year. 
  • OSRA requires the FMC to investigate complaints about detention and demurrage charges to determine if they are reasonable. 
  • This new framework provides shippers with recourse to challenge charges and was particularly significant during the pandemic when US ports were struggling with congestion.

Benelux

Ocean

• The Port of Antwerp has launched a world’s first drone network to support operations at the port.
  • Six autonomous drones will perform daily flights helping to coordinate safe and sustainable operations over the port’s 120km² area. 
  • The drones will support berth management, monitoring, infrastructure inspections, oil spills and floating waste detection, and to support security partners during incidents.

• The Port of Rotterdam throughput declined for the first quarter of 2023
  • Compared with Q1 2022, throughput declined by 1.5%.
  • High inflation and weak demand have been cited as contributing to this fall in freight.  

UK

Ocean

• The Port of Aberdeen is striving to be the first net zero port in the UK by 2040.
  • Over the next 10 years £55 million will be invested in reducing emissions and promoting fuel alternatives.
  • The port is already utilising electric vehicles and LED lighting and plans to trail using treated vegetable oil for port-owned vessels.

Road/Rail

• Recent figures from the UpplyxTixIRU rates index which measures European road freight rate, reveal a decline for Q1.
  • Spot rates have fallen by 7.5% and contract rates have fallen by 2.8% quarter on quarter. 
  • This suggests a recalibration of the European road freight market following a year of strong rate growth in 2022. 
  • Declining demand has been attributed to the drop in rates, however the industry is still facing a driver shortage.

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.

May 9 – Belarus, Bosnia and Herzegovina (FBiH)*, Guernsey and Alderney, Jersey, Kosovo, Luxembourg, Moldova, Russia, Transdniestria (PMR)

May 15 – Spain*

May 17 – Spain*

May 18 – Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, Netherlands, Sweden

May 19 – Belgium*, Denmark*

May 24 – Bulgaria

May 27 – Sweden*

May 28 – Denmark, Estonia, Finland, Germany*, Netherlands, Poland, Slovenia, Sweden

May 29 – Austria, Belgium, Denmark, France, Germany, Hungary, Luxembourg, Netherlands

May 30 – Croatia, Spain*

May 31 – Spain*

June 1 – Romania

June 2 – Italy, Romania*

June 4 – Greece, Lithuania, Romania

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*

*Not in all regions