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: Potential shutdown looms at Shanghai airport, congestions worsens, equipment levels stop bookings

In Focus: Disruption and uncertainty at Shanghai, world’s 3rd largest airport

Due to new reported cases of Covid-19, Shanghai authorities have suspended a large portion of ramp operations at PACTL terminal. Services including the loading and unloading of aircraft will be affected until further notice. In response to this suspension a number of airlines have suspended flights into Shanghai Pudong airport.

Other terminals at Shanghai Pudong will continue to operate as normal but we expect the closure of PACTL to have an effect on the other terminals.

As a result of these flight cancellations we expect rates to increase, capacity to reduce by over 30% and uplifts to be delayed. We ask that our customers prepare for these delays and increased costs. If you have any planned air freight shipments ex-PVG, please notify us as soon as possible.

While hopes were high after all airport staff have tested for Covid-19 twice since Friday, there are reports of a new case being found today which will extend the pause in operations.

 


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Ocean

Asia → North America

Capacity

  • Meishan terminal has reopened after a two-week delay caused by confirmed COVID cases, with an estimated 10 days to two weeks to clear the boxship backlog. Recent reports claim there were 44 ships waiting to dock on Wednesday 25th August.

Equipment

  • There are reports that CMA/HAPAG have exhausted their 40 STD/HQ inventories in India, driving more bookings to MSC Bookings, despite high prices.
  • This situation is likely to continue for the next few weeks on account of waits of up to 120 days to return empty containers.

Ports

  • West Coast congestion is intensifying with Port of Los Angeles volumes up 36.8% in July. Reports from last Sunday indicate thirty-seven ships anchored awaiting berth space outside the twin ports of Los Angeles and Long Beach.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Shortage Normal Shortage
SHANGHAI Shortage Normal Shortage
YANTIAN Shortage Normal Normal
SHEKOU Shortage Normal Normal
MSK QINGDAO Shortage Shortage Shortage
SHANGHAI Normal Normal Shortage
NINGBO Shortage Normal Shortage
Nanjing Shortage Normal Shortage
Xiamen Shortage 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 Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Shortage Shortage
HMM SHANGHAI Normal Shortage Normal
NINGBO Normal Shortage Normal
YANTIAN Normal Shortage Normal
SHEKOU Normal Shortage Normal
MSC SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
EMC YANTIAN Shortage Shortage Shortage
SHEKOU Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
QINGDAO Shortage Shortage Shortage
OOCL YANTIAN Normal Normal Shortage
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
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 Normal
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

Asia → Europe (Far East Westbound)

Rates

  • Hapag have announced a rate increase from the Indian Subcontinent to 20’ and 40’ General Purpose (including High Cube) containers from September 15, 2021
    • On routes to Northern Europe – $800
    • On routes to the Mediterranean – $500 – 800

Capacity

  • HSUD has announced full booking stop on all 40’ equipment and heavy 20’ units from the Middle East and Far East to the UK.
  • Globally, the inactive fleet stood at 177 ships for 653,031 teu in Alphaliner’s latest survey on 16 August, accounting 2.7% of the global cellular fleet capacity, an increase of 67,926 teu.

Equipment

  • See above

Ports

  • HMM has announced a HGV driver retention surcharge of £40 per container for all export collections and import deliveries on the Far East Europe trade.
Alliance EUR BLANK SAILING
Service V/V Nominal Capacity/Teu ETD QINGDAO ETD SHANGHAI ETD NINGBO ETD SHEHZHEN ETD WEEK in SHENZHEN
THE FE2 AL MURAYKH 016W 19,870 / 2021/8/20 2021/8/23 2021/8/28 34
FE3 HMM RAON 002W 13,300 / / / 2021/8/30 35
FE2 MOL TRUTH 015W 20,182 / 2021/9/17 2021/9/20 2021/9/25 38
FE3 TBA 13,000 / / / 2021/10/9 40
FE4 TBA 24,000 2021/10/7 2021/10/16 2021/10/13 2021/10/20 42

Europe → USA (Transatlantic Westbound)

Rates

  • ONE will apply a Peak Season Surcharge (PSS) of $1750 for all container types moving from North Europe to the USA from 3rd September 2021 until further notice.

Air

Asia

US market

  • Rates have increased and space is extremely tight
  • BR & CK have cancelled all flights including 35 weekly flights into the USA
  • Uplifts are expected to be delayed and transit times will be longer
  • Rates and space must be checked on a case by case basis.

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

  • Rates have increased and space is extremely tight
  • BR & CK have cancelled all flights including 13 weekly flights into the Europe
  • Uplifts are expected to be delayed and transit times will be longer
  • Rates and space must be checked on a case by case basis.

UK market

  • Rates have increased and space is extremely tight
  • BR & CK have cancelled all flights including 35 weekly flights into the USA
  • Uplifts are expected to be delayed and transit times will be longer
  • Rates and space must be checked on a case by case basis.

Americas

  • Rates to PVG will increase in the coming weeks as a result of the terminal closure
  • Rates into 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 pick ups, 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

  • Rates from PVG will increase in the coming weeks as a result of the terminal closures.
  • Rates to the US remain the same with no real increase.
  • Capacity to most regions is still restricted.

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

  • From 1 October, there will be new safety and security requirements surrounding exports with an expanded list of movements requiring exit summary declarations (EXS), raising complexity in GB-EU supply chains.
  • From the end of next month, shippers will be required to supply an EXS for further movements, like empties being moved under a transport contract to the EU and goods moving by ro-ro vessels where there would otherwise be a requirement for an EXS.

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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