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: Record congestion at LA, Dhaka disruption

 


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In Focus: Dhaka congestion

Hundreds of trucks are reported to be queuing outside Hazrat Shahjalal International airport cargo village. The cargo congestion within the village has become so chaotic that the queue of trucks have been reported to tail back as far as Mymensingh, taking 2-3 days to clear. This is resulting in a lot of freight missing their designated flights.

The queues are being caused by a number of factors including construction works at the airport, high export demand and failing x-ray machines. Just two explosives scanners are handling 1,200 tonnes of cargo every day, usually the volume is around 800 tonnes.

Ocean

Asia → North America

Rates

  • Rates remain stable this week, with no major increases.
    • We are still seeing ranges of $14,000 to $18,000 to L.A and the US West Coast.
    • $20,000 to $24,000 ranges to the East Coast.
    • $22,000+ to the MidWest of the USA
  • The Indian subcontinent continues to see elevated rates as congestion and equipment shortages remain.

Capacity

  • Two new weekly shuttle services have been announced
    • The Puma Shuttle runs from Shenzhen to Long Beach
    • The Mustang Service runs from Shanghai to LongBeach
  •  There has been a redeployment of services from other secondary trade lanes. For example, 50% of services between Asia and the Middle East are currently blank sailings.
  • Carriers are shifting their vessels to Transpacific routes from China to the US.
    • Bottlenecks in the supply chain caused by a lack of space are stopping vessels from proceeding.
    • CMA has introduced another Indmex 2 service. This route goes between the Indian subcontinent via the Suez Canal to the East Coast on a weekly basis.

Equipment

  • Ongoing reports of a shortage of drayage drivers, as well as a critical shortage of the chassis which truckers use to transport containers.

Ports

  • The ports of Los Angeles and Long Beach have announced a move towards 24/7 operations, extended night and weekend gate periods to alleviate congestion. This week saw a record 70 ships waiting to berth.
    • The vessels are experiencing delays of nearly two weeks. Records of vessels waiting to berth have been broken since 10th September on a daily basis.
  • Other West Coast ports have berthing delays of 4-5 days.
  • On the East Coast, delays are less severe compared to the West Coast
    • Norfolk is working normally
    • New York has delays of a day
    • Louisville is working normally
    • Chicago is experiencing severe delays in terms of rail and sea transportation.

Asia → Europe (Far East Westbound)

Rates

  • Hapag Lloyd are joining CMA in the rates freeze announcement. However, the differences between the two include:
    • Hapag Lloyd has announced a rates and surcharge freeze.
    • Whereas CMA only mentions a rate freeze. This is mostly applicable on the Asia to Europe trade, on the very high spot rates market.

Capacity

  • October looks to be challenging in terms of space
    • The last blank sailing table calculates 8 vessels, totalling to 145,000 TEUs out, which is a third of the capacity out.
    • Week 39 – 2M Alliance takes out two vessels, totalling to 32,000 TEUs
    • Week 41 – The 2M and the Ocean Alliance take out together two vessels, totalling to 29,000 TEU
    • Week 42 – the 3 Alliances take out 4 vessels, totalling to 84,000 TEUs
  • Exports from India increased 45.8% year-on-year last month, with competition for exporters space and containers likely to remain fierce.
  • In the latest example of NVOCCs entering the charter market, a Hong Kong-based unit of a UK forwarder has begun chartering multipurpose ships from China and Hong Kong to the UK and Europe.

Equipment

  • Evergreen and Maersk are experiencing severe shortages on the China mainland ports.
    Other carriers appear to be more balanced.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Shortage
SHANGHAI Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Normal
MSK QINGDAO Shortage Shortage Shortage
SHANGHAI Normal Normal Shortage
NINGBO Normal Shortage Shortage
Nanjing Shortage Normal Shortage
Xiamen Normal Shortage Shortage
YANTIAN Shortage Shortage Shortage
SHEKOU Shortage Shortage Shortage
NANSHA Shortage Normal Shortage
HONGKONG Normal Normal Normal
SHANTOU Shortage Shortage Shortage
ONE YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage
XINGANG Normal Shortage Shortage
QINGDAO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
NINGBO Normal Shortage Shortage
ZIM XIANGANG Normal Shortage Shortage
NINGBO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Shortage Shortage
HMM SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
MSC SHANGHAI Normal Normal Normal
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
EMC YANTIAN Normal Shortage Shortage
SHEKOU Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
QINGDAO Shortage Shortage Shortage
OOCL YANTIAN Normal Shortage Shortage
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
NINGBO Normal Shortage Shortage
YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage
cosco YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
XINGANG Normal Normal Normal
YML YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage

Air

Asia 

1. US market

    • Due to the 3-day holiday for Mid-Autumn Festival and the 7 day national holiday between the 1st to 7th October, space will be very tight in the coming weeks. Rates are expected to remain at current levels. 
    • Rates and space must be checked on a case-by-case basis. 

 

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

    • Due to the 3 day holiday for Mid-Autumn Festival and the 7 day national holiday between 1st-7th October space will be very tight in the coming weeks. Rates are expected to remain at current levels. 
    • Rates and space must be checked on a case by case basis. 

 

3. UK market

    • Due to the 3 day holiday for Mid-Autumn Festival and the 7 day national holiday between 1st-7th October space will be very tight in the coming weeks. Rates are expected to remain at current levels. 
    • Rates and space must be checked on a case by case basis. 

 

Americas

  • Rates into Asia, UK and Europe remain mostly the same this week.
  • Space remains constricted due to reduced capacity and staff shortages.
  • ORD is still over capacity and there are issues over release updates. Forwarders are having to send in trucks to collect without knowing if freight is ready and the ground handling agents aren’t answering their phones.
  • Forwarders are choosing to use smaller airports as much as possible as there is less congestion. Freight rates will be higher but there is less chance of incurring additional costs for attempted pickups, waiting time and storage. 
  • LAX is still a challenge, there are usually waiting time charges applied to most shipments due to the long queues to collect/deliver into the ground handling agents warehouse.

Europe/UK

  • Rates into Asia and North America remain stable.
  • Capacity to most regions is still restricted.

Road

News

  • The government has announced delayed timelines for some EU controls relating to Safety and Security declarations on imports.
  • CMA CGM Group has made a 25million-euro investment in cross-Channel operator, Brittany Ferries, to support the use of available cargo space on board Brittany Ferries’ services to the UK, Ireland and the Iberian Peninsula.
  • The national identifier for UK motorists travelling abroad is changing from GB to UK. This change applies to all vehicles, including HGVs, vans and coaches, and comes into effect from 28 September 2021.

UK Haulage

  • The government has announced changes aimed at accelerating HGV licensing including shorter tests, scrapping tests to tow a trailer or caravan and removing the need for a smaller vehicle license.
    • Issues remain the same this week
    • Semi-premium rates are available from the beginning of October. These are quite expensive
  • Haulage needs to be booked a month in advance.

Disruption

  • Dover – Calais / Dover – Dunkirk: Sailings as normal
  • Eurotunnel: Operating as normal – no planned maintenance
  • Upcoming European Bank Holidays;
    • Austria: September 24th
    • Switzerland: September 25th
    • Belgium, Jersey: September 27th
    • Czech Republic: September 28th

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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