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: India’s container shipping market improves despite tranship fees on the East Coast

 


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In focus: India’s container shipping market improves despite tranship fees on the East Coast

Shipping lines have been taking empties from the east coast port of Kolkata to west coast ports, rather than transferring cargo from one ship to another at delay stricken transhipment hubs such as Colombo or Singapore.

As a result, east coast shippers have had to pay $1,500 to move cargo cross-country where there is more capacity available.

Despite this, the container shipping market in this area appears to be ‘cooling’ as the situation for exports to North America and Europe has improved in terms of freight rates and bookings.

 

Ocean

Asia → North America (Transpacific Eastbound)

Rates

  • The Drewry’s World Container Index to the US West Coast increased by 1% this week to $10,058 per 40ft. For the US East Coast, the reading was $13,139 per 40ft. 
  • The Freightos Baltic Index (FBX), which includes premium surcharges, increased by 4% for the US West Coast to $14,478 per 40ft. For the US East Coast, the rates have increased by 3% to $16,390 per 40ft.

Ports

  • Congestion at West Coast ports has not improved in terms of vessels waiting for a berth. 
  • 105 containerships are sitting at the ports of LA and Long Beach. 75 of them are at anchor, waiting for a berth. 
  • There has been a focus on clearing containers that have sat in terminals for longer than 9 days. 
    • There has been a 32% reduction in containers at Long Beach
    • In LA, there has been a 57% reduction in containers
  • The port of LA and Long Beach have postponed the implementation of the planned dwell fee for containers that spend too long at the dock. 
    • However, since the fee was announced in October, the two ports have seen a decline of 26% in lingering cargo on their docks. 
City Soonest Availability Date Important Note! Notice Required (Estimated)
ATLANTA 11/23 (chassis shortage) Export Congestion / limited hazardous availability 1 week
BIRMINGHAM 11/23 Export Congestion 1 week
CHARLESTON 12/6 SPOT PRICING WILL APPLY 3 weeks
CHARLOTTE 11/29/2021 (chassis shortage) 2 weeks
CHICAGO 12/6 (chassis shortage) SPOT PRICING WILL APPLY Export Congestion 3 weeks
CINCINNATI 11/29 (Chassis Shortage) 2 weeks
CLEVELAND 12/2 Export Congestion 2.5 weeks
DENVER Local OPEN Road 11/22 (Chassis Shortage) Export Congestion 2 days local / 2 weeks for road moves
DETROIT 12/1 (Chassis Shortage) Export Congestion 2 weeks
HOUSTON 12/6 Local 12/13 Road (container and chassis shortage) Export Congestion / Limited availability for DFW area / Chassis shortage 3-4 weeks
HUNTSVILLE 12/1 2.5 weeks
INDIANAPOLIS 12/6 (chassis shortage) Export Congestion 3 weeks
KANSAS CITY 12/1 (Chassis Shortage) Export Congestion 2.5 weeks
LOS ANGELES NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES Not accepting new orders
LOUISVILLE 11/22 (Chassis Shortage) Export Congestion 1 week
MEMPHIS 11/22 (Chassis Shortage) Export Congestion – EXTREMELY limited hazardous coverage 1.5 weeks
MIAMI 12/7/2021 SPOT PRICING WILL APPLY VERY limited availability out of SFCT, Limited haz availability 3 weeks
MINNEAPOLIS 11/29 (Chassis shortage) 2 weeks
MOBILE LOCAL 11/23 ROAD 12/14 (Chassis and Container Shortage) EXTREMELY limited availability for moves over 300 miles and/or OW loads 1 week local / 4 weeks road
NASHVILLE 11/22 (Chassis shortage) Export Congestion 1 week
NEW ORLEANS 11/30 (Chassis Shortage) Very limited on triaxles/overweight 2 weeks
NY/NJ 12/7 4 weeks
NORFOLK 12/6 (Chassis shortage) SPOT PRICING WILL APPLY Very limited availability for PA moves 3 weeks
OAKLAND 11/22(Chassis shortage) Export Congestion 1 week
OMAHA 11/22 Very limited triaxles 1 week
PHILADELPHIA 12/1 (Chassis shortage) Limited availability for exports 2.5 weeks
PORTLAND 12/13 Chassis shortage, Very limited truck availability 3 weeks
SAINT LOUIS 11/29 (chassis shortage) Export Congestion – limited availability for triaxles. 2 weeks
SAVANNAH 12/6 (Chassis shortage) SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability 3 weeks
SEATTLE/ TACOMA 12/6 (chassis shortage) SPOT PRICING WILL APPLY Very Limited availability for exports and moves out of Tacoma ports 3 weeks

 

Asia → Europe (Far East Westbound)

Rates

  • Rates have dropped over the past week. 
    • The Drewry’s World Container Index (WCI) for North Europe has dropped by 3% to $13,000 per 40ft. 
    • The Freightos Baltic Index (FBX) for North Europe remained level at $14,219 per 40ft. 
    • Prices are all ‘guaranteed’ in terms of equipment and space on nominated Ocean and 2M Alliance sailings. This means premium fees are no longer being charged on the route. 

Capacity

  • Carriers are accepting new customers due to availability in space. 
  • The 2M Alliance are reinstating Hamburg as part of the AE7/Condor loop service.
    • They previously announced that Hamburg would be omitted until next year. 
  • Although Zim have announced that they are looking into more routes from Asia, however they will not be considering the Asia-North Europe trades.

Equipment

  • See below

Ports

  • The Port of Rotterdam will continue to experience congestion in 2022. Due to pandemic restrictions and poor weather conditions, it is not possible to estimate when congestion will ease.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
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 Normal
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 Normal
SHEKOU Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
QINGDAO Normal Normal Normal
OOCL YANTIAN Normal Normal Normal
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 Normal Normal Normal
SHEKOU Normal Shortage Normal

 

Europe→ USA (Transatlantic Westbound)

Rates

  • WCI rates for the Transatlantic route remained unchanged at $6,272 per 40ft from North Europe to the US East Coast.
  • FBX rates have increased by 4% to $7,595 per $0ft between North Europe to the US East Coast.

Air

Asia 

Central China to USA and Europe

  • Coronavirus measures at PVG Airport are still in place. 
    • 40% of cargo flights have not resumed.
    • Terminals are at 50% in terms of manpower. 
    • Rates to the US from PVG Airport keep increasing. 
    • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 
  • Rates have increased from Ningbo to the US. 
  • 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. Customers should expect higher rates and longer transit times on this route. 
  • However, rates have decreased from Peking Airport for both regions. 
    • Due to the winter season, airlines have rescheduled or cancelled their flights due to bad weather. 
    • A new COVID-19 policy control policy was introduced last week which requires lorry drivers to provide a negative COVID-19 test before entering Beijing. 
    • On 16th November, United Airlines reopened the lane to ORD Airport. 
  • 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. However, rates remained the same as last week for both regions. 
  • 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

  • Congestion at US airports continues to worsen. 
  • New York’s JFK Airport is seeing delays of up to two weeks to recover cargo. 
    • China Airlines and China Cargo Airlines, which are handled by the World Freight Service (WFS), are seeing delays of nine to 19 days for cargo recovery. Labour shortages are a main factor behind this congestion. 
    • Emirates, Etihad and Kalitta Air, also handled by WFS, are reporting delays of three to four days. 
    • Boutique handler, MSN, has announced delays of one to two weeks. 
    • Lufthansa Cargo is also struggling at the airport. 
    • JFK has zero warehouse availability to move imports off the airport grounds.
  • Los Angeles Airport has also reported severe delays. 
    • China Eastern’s cargo is facing pick-up delays of up to 15 days.
    • LAX Airport is also suffering from a lack of warehouse space. 
  • Alliance and Swissport in Atlanta are seeing a few days’ worth of delays.
  • Miami and Chicago O’Hare Airport are clear for all handlers.

Europe/UK

  • French transportation and shipping company CMA CGM has four A350F freighter aircrafts from Airbus. 
    • The cargo carrier will now have a total Airbus fleet of nine aircraft including five A330-200F. 
  • The new AE350F will feature a large main deck for cargo and a fuselage length optimised for cargo operations.
  • This carrier could offer an 11% larger freight volume compared to the Boeing 777F.

 

Road

European Road Freight market to grow by 8.6% in 2021

Ti’s new market forecast data reveals that the European road freight market grew by 11.1% in the first half of 2021, and is projected to be worth €352.39bn at the end of 2021, 2.2% larger than 2019’s pre-pandemic peak. This expansion will continue over the next 5 years, with Ti’s new data projecting the market will expand at a 4.3% CAGR through to 2025.

Driver and semiconductor shortages contribute to fall in HGV registrations in third quarter

New heavy goods vehicle (HGV) registrations in the UK declined by 8.4% in the third quarter of 2021, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). The SMMT attributed the decline in part to the shortage of HGV drivers and falling production levels due to semi-conductor shortages. The decrease saw 7,715 trucks registered, 704 fewer than the Q3 2020 total, when registrations were taking place against the volatile backdrop of the Covid-19 pandemic.

Spanish truck drivers announce three-day strike ahead of Christmas

Spain’s National Road Transportation Committee (CNTC) have announced a three-day strike, between December 20th and 22nd, to protest what it calls the government’s failure to address a crisis in the sector. The CNTC – which represents freight truck drivers in Spain – accused the administration of “neglect,” arguing that “all reasonable channels of negotiation have been exhausted.”  If the strike is not called off, it could negatively affect the supply chain ahead of Christmas – key days for business, when more is sold than at any other time of the year. The last national strike from the sector took place in June 2008, at the beginning of the financial crisis, and led to massive bottlenecks and fuel shortages.

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.

November 30th – Romania

December 1st – Portugal, Romania

December 6th – Spain, Finland

December 7th – Italy (Milan Only)

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

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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