Weekly Market Updates

Transport Update 13th December

Dec 13, 2021
Welcome to the Zencargo weekly freight market update – the latest news from our freight and procurement teams on the real experience of shippers.
This week: Securing space on containerships is the biggest challenge in 2022 according to an industry survey

 


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In focus: Securing space on containerships is the biggest challenge in 2022 according to an industry survey

A poll of 800 logistics companies by online equipment trading platform, Container xChange, reveals that for 53% of respondents, finding slots on vessels is by far the biggest concern for businesses. 54% of respondents also expect that the performance of the supply chain industry will remain bad whilst 11% believe it will deteriorate even further.

As a consequence, 71% of respondents said that they were ‘rethinking their logistics strategy’ and proactively seeking more sourcing options and holding more inventory.

 

Ocean

Asia → North America (Transpacific Eastbound)

Rates

  • According to the Freightos Baltic Index (FBX), rates from China/East Asia to the USA have increased. 
    • From Asia to the West Coast, rates have increased by 1% to $14,924 per 40ft.
    • Rates have increased by 3% to $17,195 per 40ft from Asia to the East Coast.
  • Contractual rates for Asia-US West Coast shipments are between $5,000 and $6000 for a 40ft container.
  • For the US East Coast, this is around $8,000 per 40ft container. 
  • The higher spot market going into this season’s contract negotiations will likely influence higher longer-term rates for cargo owners.
    • Xeneta’s statistics show that in February, when the last contract negotiations began, average Asia-US spot rates were $3,456 on the US West Coast and $4,604 on the US East Coast for a 40ft container. These figures rose to $7,940 and $9,344 respectively in October as port congestion worsened.

Ports

  • Retail imports at the U.S.’s major container ports are expected to end 2021 with both the largest volume and fastest growth on record.
    • Retail imports will have reached 26 million TEU at US ports, an increase of 18.3% over 2020.
    • This is the highest number recorded since the National Retail Federation began tracking imports in 2002. 
  • The Port of Long Beach moved less cargo in November than it did a year ago. 
    • The port says it processed nearly 5% less cargo last month than it did in November 2020 as efforts continue to make room for imports. 
    • November’s throughput volumes came in at 745,488 TEU, a 4.9% decline compared to November 2020. 
    • Volumes last month fell across the board compared to November 2020.
      • Imports dropped 5.3% to 362,394 TEUs.
      • Exports decreased 6.4% to 109,821 TEUs.
      • Empty containers fell 3.6% to 273,274 TEUs.
    • The declines come even as dockworkers and terminal operators are on pace to process more than 9 million cargo containers by the end of 2021, surpassing the previous annual record by more than 900,000 TEU.
    • By the end of November, the Port of Long Beach has processed more than 8.6 million TEU, up over 18% from last year
  • The Port of Long Beach have reported 34 container vessels at anchor waiting to enter the San Pedro Bay ports complex, down from more than 80 last month.
    • This may be due to the new queuing process that has ships waiting out in the Pacific instead of anchorages and loitering areas in the immediate vicinity of the San Pedro Bay ports.
    • The ‘Container Dwell Fee’ which was announced earlier this year has been postponed again and has helped to decline aging cargo in San Pedro Bay terminals. 
    • The latest number of backed up ships, both in the immediate vicinity of the ports and also outside the 150-mile exclusion zone, stood at 94 containerships as of December, just below the record of 96
City Soonest Availability Date Important Note! Notice Required (Estimated)
ATLANTA 12/14 (chassis shortage) Export Congestion / limited hazardous availability 1 week
BALTIMORE No current capacity issues, please send your dispatch
BIRMINGHAM 12/23 Export Congestion 2.5 weeks
BOSTON No current capacity issues, please send your dispatch
BUFFALO No current capacity issues, please send your dispatch
CHARLESTON 12/30 SPOT PRICING MAY APPLY 4 weeks
CHARLOTTE 12/27/2021 (chassis shortage) 2 weeks
CHICAGO 12/27 (chassis shortage) SPOT PRICING MAY APPLY Export Congestion 3.5 weeks
CINCINNATI 12/16 (Chassis Shortage) 2 weeks
CLEVELAND 12/13 Export Congestion 1 week
COLOMBUS No current capacity issues, please send your dispatch
DALLAS No current capacity issues, please send your dispatch
DENVER Local OPEN Road 12/10 (Chassis Shortage) Export Congestion 2 days local / 1.5 weeks for road moves
DETROIT 12/13 (Chassis Shortage) Export Congestion 1.5 weeks
EL PASO No current capacity issues, please send your dispatch
HOUSTON 12/20 Local 12/30 Road (container and chassis shortage) Export Congestion / Limited availability for DFW area / Chassis shortage 2 weeks local/3 weeks road
HUNTSVILLE 12/20 2 weeks
INDIANAPOLIS 12/21 (chassis shortage) Export Congestion 3 weeks
JACKSONVILLE No current capacity issues, please send your dispatch
KANSAS CITY 12/16 (Chassis Shortage) Export Congestion / very limited triaxles 1.5 weeks
LAREDO No current capacity issues, please send your dispatch 2 weeks
LOS ANGELES NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES Limited reefer & hazardous availability Not accepting new orders
LOUISVILLE 12/13 (Chassis Shortage) SPOT PRICING MAY APPLY Export Congestion 2 weeks
MEMPHIS 12/13 (Chassis Shortage) Export Congestion – EXTREMELY limited hazardous coverage 1.5 weeks
MIAMI 12/30 SPOT PRICING WILL APPLY VERY limited availability out of SFCT, Limited haz availability 3.5 weeks
MINNEAPOLIS 12/13 (Chassis shortage) SPOT PRICING MAY APPLY 1.5 weeks
MOBILE 12/20 SPOT PRICING MAY APPLY Equipment shortage and limited avail for moves over 300 miles or OW loads 2 weeks
NASHVILLE 12/13 (Chassis shortage) Export Congestion 1 week
NEW ORLEANS 12/27 (Chassis Shortage) Very limited on triaxles/overweight 3.5 weeks
NY/NJ 12/28 3.5 weeks
NORFOLK 12/20 (Chassis shortage) SPOT PRICING MAY APPLY Very limited availability for PA moves 3 weeks
OAKLAND 12/14(Chassis shortage) Export Congestion 1 week
OMAHA 12/10 Very limited triaxles 1 week
PHILADELPHIA 12/16 (Chassis shortage) Limited availability for exports 2 weeks
PITTSBURGH No current capacity issues, please send your dispatch
PORTLAND 12/30 SPOT PRICING WILL APPLY Chassis shortage, Very limited truck availability 5 weeks
SAINT LOUIS 12/13 (chassis shortage) Export Congestion – limited availability for triaxles. 1.5 weeks
SALT LAKE CITY No current capacity issues, please send your dispatch
SAVANNAH 12/30 (Chassis shortage) SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability 3.5 weeks
SEATTLE/ TACOMA 1/3 (chassis shortage) SPOT PRICING WILL APPLY Very Limited availability for exports and moves out of Tacoma ports 4 weeks
TAMPA 12/22

 

 

Asia → Europe (Far East Westbound)

Rates

  • Rates have increased by 1% to $14,498 per 40ft from Asia to North Europe according to FBX rates.
  • Rates from Asia to the Mediterranean have increased by 3% to $13,424 per 40ft.  

Capacity

  • Asian exporters ‘abandoned’ by Maersk are negotiating deals with rival carriers which is creating a fresh wave of ad hoc charters to North European ports for next month. 
    • Maersk’s announcement has impacted many smaller forwarders and NVOCCs as they will no longer be accepted for bookings after 1st January.  
    • Maersk reps have told shippers they are not interested in negotiating contracts for volumes below 100 containers a week and, instead, are recommending smaller customers access the carrier’s ‘Maersk Spot’ product to make bookings. 
    • The Asia-Europe market, disrupted by the de facto withdrawal of Maersk, has evolved into ‘regular’ ad hoc sailings from Asia with operators confident enough to advertise their open ships well in advance.
    • High rates, strong demand and dearth of open cellular tonnage has been advantageous for multipurpose vessels (MPVs) as they are receiving container parcel offers more regularly. 
    • Although nowhere near the massive hikes seen in the container sector, average daily hire rates for MPVs have doubled in the past 18 months, to some $10,500 a day.

Equipment

  • See below

Ports

  • Port congestion prompts carriers to drop a quarter of all North European calls from the Far-East – Europe deep sea loops. 
    • The eighteen big Far East – North Europe loops operated by the three mega alliances have skipped a total of 383 port calls in North Europe over the past five months due to severe port congestion.
    • A survey by Alphaliner revealed that Felixstowe was worst hit by the temporary schedule changes and ad hoc adjustments.
    • Rotterdam, Antwerp and Hamburg, also saw a reduction of between 20.2% to 30.3% of planned calls.
  • The significant drop in Far East calls in the third quarter of this year did not heavily impact container throughput at Rotterdam, Antwerp and Hamburg, in the period from January to September.
    • Rotterdam achieved container growth of 7.8% in the first nine months of the year to reach 11.5 Mteu, despite a 25.6% drop in Far East calls in the July – November survey. 
  • COSCO expects to increase the proportion of its contract business on the fronthaul Asia-Europe route above 45% in 2022.
    • The carrier also plans to significantly increase its two- and three-year contracts with customers.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Normal
SHANGHAI Normal Normal Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
MSK QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
Nanjing Normal Normal Shortage
Xiamen Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
NANSHA Normal Normal Normal
HONGKONG Normal Normal Normal
SHANTOU Normal Normal Normal
ONE YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
XINGANG Normal Normal Normal
QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
ZIM XIANGANG Normal Normal Normal
NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Shortage
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
MSC SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
EMC YANTIAN Normal Normal Shortage
SHEKOU Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
QINGDAO Normal Normal Normal
OOCL YANTIAN Normal Normal Shortage
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Shortage
CMA QINGDAO Normal Normal Shortage
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
cosco YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Shortage
QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
XINGANG Normal Normal Normal
YML YANTIAN Shortage Normal Normal
SHEKOU Normal Shortage Shortage

 

 


Europe→ USA (Transatlantic Westbound)

Rates

    • FBX rates have decreased by 3% to $7,219 from North Europe to the USA East Coast. 

Air

Asia 

 Central China to USA and Europe

  • The US and EU markets are still short of space.
    • Rates are increasing for both destinations from Shanghai. 
    • Covid restrictions are still in place at PVG Airport.
      • Over 40% of cargo flights are cancelled
      • Terminals are at 50% in terms of labour resources
    • Rates to the USA and Europe have increased again.
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

 

North China to USA and Europe

  • Rates have increased between TSN Airport to the USA and Europe. 
  • KE/OZ can provide space for urgent cargo to both destinations. 
  • Rates from PEK Airport have increased compared to last week to the USA and Europe. 
    • Space is getting tight due to peak season and Covid testing. 
  • It is advisable to confirm rates and space 3-4 days in advance. 
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

 

South China to USA and Europe

  • The air rate has increased significantly from CAN airport to the USA and Europe and space is relatively limited. 
  • At SZX Airport, rates have decreased to the USA; however, they have remained stable and high for Europe. 
  • Space to the USA and Europe from XMN Airport is tight. Rates have increased for both destinations again. . 
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

Americas

  • Dallas/Fort Worth (DFW) International Airport is set for a busy year as cargo volumes are just short of the 1m tonne mark. 
    • However, 6 years ago, DFW have set a strategy in place by using ground handling data to develop perishables facilities and investing in equipment and software.
    • They invested in software to speed up the processing of trucks with a vehicle booking system. 
    • The result of this strategy, has helped to deal with cargo volumes this year.
    • DFW is now looking to develop new cargo facilities to provide space for high volumes- 15,000 square metres of warehouse space and 4,000 square metres of office space.
    • E-Commerce is also an area they are looking to grow in their business strategy. 

Europe/UK

  • Air France Cargo and Delta Cargo are expected to see delays at Charles de Gaulle Airport following a strike.
    • Air France has warned that several Air France staff unions would strike from midnight on Friday until 6am today, but cargo would be affected for another 24 hours. 
    • The airline announced that it was cancelling all flights, including freighters, from Charles de Gaulle to Hong Kong until 26th March.

Road and Rail

REMINDER: Prepare for full customs controls from 1st January 2022

From the 1st January 2022, the current easements on full customs controls of goods moving into the UK will be removed, and customs checks will be introduced. Prior notification of agri-food imports will be required, but how soon before shipment is needed will differ as time limits for this will vary depending on transport route.

The temporary easement for the requirement to hold supplier declarations (where required) prior to issuing statements on origin for export to the EU will also cease for businesses using the EU-UK trade agreement. Suppliers’ declarations will likely be necessary where you purchase goods for onward sale unaltered, or you need evidence of the originating status of production inputs to calculate the origin of your goods.

 

Frustration over restrictive measures causing severe Austrian traffic jams

The International Road Transport Union (IRU) and 12 European road haulage associations have renewed their calls for the EC to “stop Austria’s illegal anti-transit measures”, which have escalated in recent weeks in the Tyrol region and led to huge traffic jams.

According to the IRU, Austrian restrictions on the number of trucks that can transit the Tyrol region, which links the Brenner Pass on the Italy-Austria border with Germany, is resulting in severe congestion. Queues of up to 70km have recently become a regular occurrence in Bavaria. The construction of the Brenner Tunnel is not scheduled to be completed until 2033 and the only other alternative for intra-European overland freight is rail, which remains severely constrained by capacity.

 

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.

December 6th – Spain, Finland

December 7th – Italy (Milan Only)

December 8th – Austria, Italy, Portugal, Malta, Macedonia, Spain

December 13th – Malta

December 24th – Bulgaria, Czechia, Estonia, Latvia, Lithuania, Slovakia

December 25th – Austria, Belgium, Bulgaria, Bosnia & Herzegovina, Belarus, Switzerland, Cyprus, Germany, Denmark, Spain, Estonia, France, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Moldova, Malta, Norway, Netherland, Portugal, Poland, Romania, Sweden, Slovakia, Romania, Slovenia, Ukraine

December 26th –  Austria, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Norway, Netherlands, Poland, Romania, Sweden, Slovakia, Slovenia

December 27th – Great Britain

December 28th – Bulgaria, Great Britain

December 31st – Estonia, Latvia, Russia,

The route ahead

The information that is available in the Weekly Market Update comes from a variety of online sources, partners and our own teams. Click below to learn more about how Zencargo can help make your supply chain your competitive advantage.

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Kim Wan
Kim Wan

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