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: Mid-west intermodal buckles, echoes of Yantian in South Vietnam

In Focus: South Vietnam

In a moment of supply chain deja vu, ships are backing up off southern Vietnam as an outbreak of Covid-19 forces a new lockdown in the area. The daily data from Monday shows Vietnam had 4,843 new cases in one day, triple the whole of 2020. This has caused not only a slow down in port operations but also closed many factories, just as demand for products from the area was booming.

While this is unlikely to impact global supply chains on the level of Yantian, due to the smaller volumes in the port, the delays in berthing and consequent backlogs are likely to continue the congestion issues at destination and origin ports that have restricted capacity so far this year. This will further delay recovery in balancing equipment levels and normalising schedules.

 


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Ocean

Asia → North America

Rates

  • Hapag-Lloyd has announced a new Value Added Surcharge (VAD) from Asia to the US, effective from August 15th, of $4,000 for all 20′ containers and $5,000 for all 40′ containers.

Capacity

  • CULines has announced a new transpacific service, running five 1,700-4,400TEU container vessels, connecting Shanghai and Los Angeles. The service commences 18th July.
  • The Chinese Authority has announced the suspension of reefer shipment imports to Lianhuashan, Jiaoxin, and Zhanjian in China until further notice

Equipment:

  • The US rail company, Union Pacific has confirmed the suspension of rail shipments from the US West Coast due to congestion at inland intermodal terminals, most notably in Chicago. This issue is exacerbated by an ongoing shortage of marine chassis. Experts expect this decision to temporarily worsen congestion on the West Coast.

Ports

  • NY/NJ is now the second-largest port by volume in the US after seeing a 47.8% year-on-year increase in its throughput in June, to 390,169 teu.

Asia → Europe (Far East Westbound)

Rates

  • MSC announced new charges on routes from Sri Lanka, India, Pakistan and United Arab Emirates (UAE) to Antwerp and Valencia, effective from 1 August until further notice.
    • Rates range from $3,000 – $4,250/ 20’ and $4,000 – $5,500/ 40’ containers.
  • CMA CGM announced new rates from India to Northern Europe of $3,300 / 20’ and $4,050/40’
  • CMA CGM has announced a new PSS from India to North Europe, Baltic, Mediterranean, Black Sea, North Africa & Morocco of $1,000/container.

Capacity

  • Capacity expected to remain tight going into peak season as sufficient demand remains to outperform max capacity.

Equipment

  • There is currently a severe shortage of 40ft high cubes, but still availability for standard 40ft containers.
  • There is also available stock of 20ft containers.

Ports

  •  The Ever Given has returned to service on European destinations, but has been forced to drop the Hamburg port call “because of concerns surrounding navigation safety”.
  • Rotterdam is operating with berthing delays of 2 – 10 days due to ongoing congestion.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Shortage Shortage
MSK QINGDAO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
NANJING Shortage Normal Shortage
XIAMEN Shortage Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Shortage Shortage
NANSHA Normal Normal Shortage
HONGKONG Normal Normal Shortage
SHANTOU Normal Normal Shortage
ONE YANTIAN Normal Normal Normal
SHEKOU Normal Normal Shortage
XINGANG Normal Shortage Shortage
QINGDAO Normal Normal Shortage
SHANGHAI Normal Normal Normal
NINGBO Shortage Shortage Shortage
ZIM XIANGANG Normal Shortage Shortage
NINGBO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage
HMM SHANGHAI Normal Normal Shortage
NINGBO Normal Shortage Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
MSC SHANGHAI Normal Shortage Shortage
NINGBO Shortage Normal Shortage
YANTIAN Normal Shortage Shortage
SHEKOU Shortage Normal Shortage
EMC YANTIAN Normal Normal Shortage
SHEKOU Shortage Normal Shortage
NINGBO Shortage Normal Shortage
SHANGHAI Normal Shortage Shortage
QINGDAO Normal Shortage Shortage
OOCL YANTIAN Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
YANTIAN Shortage Shortage Shortage
SHEKOU Shortage Shortage Shortage
cosco YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
QINGDAO Normal Normal Shortage
DALIAN Normal Normal Normal
XINGANG Normal Normal Normal
YML YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage

Europe → USA (Transatlantic Westbound)

Rates

  • CMA has announced a PSS from Europe to North America, effective from August 1st:
    • East Coast: $1,000/ 20′, $1,250/ 40′
    • West Coast: $1,000 /20′, $1,500/ 40′

Capacity:

  • ONE and Yang Ming are reported to not have space until mid-August, though MSC have some pockets of space.
  • A streak of blank sailings due to vessel maintenance will be implemented by THE Alliance and Ocean Alliance in week 29 and 31 on the USWC service.

Ports:

  • Hapag-Lloyd have confirmed a Congestion Surcharge of USD 350 per container for all intermodal moves in the US effective upon carrier receipt of cargo on or after August 1, 2021 until further notice.


Air

Asia

US market

  • There is no real change this week, rates have reduced slightly.
  • Air China are running flights into JFK on days 3, 5 and 7, helping the JFK market to return to normal
  • Spot rates available for heavy/dense cargo as well as volume cargo.
  • For all airports – rates and space must be checked on a case by case basis.

EU market (base airport like FRA/AMS/LUX, etc)

  • No real change on the Asia-Europe trade lane, with rates reducing very slightly
  • China Cargo Airlines canceled its flight on day 3 into AMS and Air China has reduced flights to just day 3 and day, reducing the capacity into AMS.
  • Some converted passenger flights are being changed to domestic flights to accommodate summer holiday travel
  • Rates and space must be checked on a case by case basis.
    Spot rates available for heavy/dense cargo as well as volume cargo.

UK market

  • No real change this week, deferred service rates have decreased.
  • There are good spot rates out there if other, regional airports can be used – but there are restrictions on commodities, so it is always best to check.
  • There are direct flights with CA/BA, AIR-AIR by SQ and normal air-truck service.
  • Rates and space must be checked on a case by case basis.
  • Spot rates available for heavy/dense cargo as well as volume cargo.

Americas

  • Rates remain mostly the same this week, into UK, Europe and Asia
  • Space remains constricted due to reduced capacity.
  • US hauliers are still over capacity. We are facing delays and storage charges due to long turn around times with breaking down freight and then long queues at the airports to collect freight. Main hubs such as ORD and LAX are the worst affected.

Europe

  • Rates into North America and Asia remain stable this week.
  • Capacity to most regions remains severely restricted
  • Hong Kong has banned all passenger flights from the UK to Hong Kong to curb the spread of the Delta variant of Covid-19.

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates are fluctuating in and out of Italy, but remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

Border situations have improved considerably with clearances running smoothly.

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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