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: The White House has intervened to alleviate congestion at US ports

 


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In Focus: The White House has intervened to alleviate congestion at US ports

Bottlenecks at US ports threatens to disrupt the holiday season for millions of Americans. With just over 10 weeks until Christmas, the White House is finding alternatives to ease the congestion of vessels.

The government is searching for new areas for container storage and is looking at additional workforce training to mitigate the lack of labour resources. The US is also identifying freight routes that may need more road vehicles.

Ocean

Asia → North America

Rates

  • Rates have reached above $10,000 for the US West Coast.
    • According to the Freightos Baltic Exchange (FBX), rates have declined by 2% to $17,069 per 40ft.
    • The Drewery’s World Container Index (WCI), which does not account for premium fees, was unchanged at $10,898 per 40ft.
  • For the US East Coast, rates have reached $14,000 to $16,000.
    • The FBX rates have declined by 1% to $20,501 per 40ft. 
    • The WCI rates have declined by 1% at $13,939 per 40ft. 

Ports

    • California’s governor, Gavin Newsom has signed an executive order instructing agencies to develop congestion mitigation methods for the state’s ports. 
      • This order will allow properties zones to handle containers to stack up to 4 high, rather than 2.
      • It requires the state to find short-term methods to alleviate the congestion at Los Angeles. 
    • The US government has made the decision to open container terminals at the ports of LA and Long Beach around the clock in order to move containers faster off the congested docks. 
      • However, according to SSA Marine which runs three container facilities in Southern California, 30% of the slots for appointments have gone unused and containers are not being picked up. 
      • On the 15th and 16th October, the APM Terminals Pier 400 at the port of LA accounted for a no show rate of 49% and 50% respectively for import container pick up. 
    • The delays at LA and Long Beach continue.
      • The average wait for a berth at its terminals is 12.8 days, however several ships have been idle for much longer. 
    • From 1 November, the San Pedro Bay ports will charge carriers $100 per container for import boxes moving via truck that remain on terminals after nine days. 
      • As of 26th October, 68 container ships are waiting for berths with a total of 247,223 teu loaded in San Pedro bay. 

Asia → Europe (Far East Westbound)

Rates

  • Yang Ming has extended their rates until the end of November. They have dropped their rates by $500. 
  • MSC has released the rates for the first half and are keeping their rate levels at $16,000 which is the same as Yang Ming. 
  • Maersk will be offering better rates to BCOs compared to freight forwarders from November. 
  • The FBX readings for Europe are as follows: 
    • The FBX reading for North Europe declined by 1.5% to $14,259 per 40ft.
    • For Mediterranean ports, the FBX was unchanged at $13,361 per 40ft.
  • The WCI readings for Europe are as follows:
    • For Northern Europe rates remain flat at $14,555 per 40ft.
    • For Mediterranean ports, this declined by 1% to $13,544 per 40ft. 
  • Shippers from Asia to Europe are obliged to pay premium fees to secure equipment and guarantee prompt shipment of up to $3000 per 40ft. 

Equipment

  • See below

Capacity

  • Extra space in the market on certain carriers. 
    • Space has been released due to the downfall of cargo from China’s power outages. 
  • Maersk is cutting their space for freight forwarders and prioritising BCOs from November. 
  • Russia is experiencing a boom in China to Europe rail freight volumes,causing congestion at key border crossings. 
    • The 2021 January to September volumes were up 47% year-on-year, to 568,700 teu. This was more than the whole of 2020. 
    • Trains from China to Europe carried 329,000 teu, up 40% but the rate of growth from Europe to China was faster with volumes up 70% to 189,100 teu between January to September.
  • However, rail freight congestion is on the rise in Europe.
    • To alleviate the pressures on congestion, a new 450,000 teu capacity terminal has opened in the Russian enclave of Kaliningrad. 
  • European blank sailing schedules can be found below:
Alliance EUR BLANK SAILING
Service V/V Nominal Capacity/Teu ETD QINGDAO ETD SHANGHAI ETD NINGBO ETD Yantian
THE FE4 TBA 24000 21-Oct 2-Nov 31-Oct 5-Nov
FE2 TBA 23964 / 26-Nov 28-Nov 2-Dec
FE2 TBA 20182 / 10-Dec 12-Dec 16-Dec
FE3 TBA 13500 / / / 27-Nov
FE3 TBA 13300 / / / 11-Dec
FE4 TBA 24000 18-Nov 27-Nov 24-Nov 1-Dec

 

Ports

  • The 2M Alliance has skipped Felixstowe port in their route.
    • They have nominated the A7 service to drop cargo at Antwerp. Cargo will then be delivered from Antwerp to the UK.

 

Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Shortage Shortage
SHANGHAI Normal Shortage 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 Shortage
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 Normal
QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
XINGANG Normal Normal Normal
YML YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal

 

Europe → USA (Transatlantic Westbound)

Rates

  • Spot rates according to FBX are flat at $7,178 per 40ft 
  • The WCI rates are down by 1% at $6,157 per 40ft

Air

Asia 

  1.     US market:
    • Strict control measures at PVG airport have resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
    • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the USA have increased.
    • Market rates are high due to lack of capacity and high demand.
    • Large shipments should be booked well in advance to allow time to find space.
    • Rates and space must be checked on a case-by-case basis. 

 

  1.       EU market (base airport like FRA/AMS/LUX, etc)
    • Strict control measures at PVG airport have resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
    • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the Europe have increased
    • Market rates are high due to lack of capacity and high demand.
    • Large shipments should be booked well in advance to allow time to find space.
    • Rates and space must be checked on a case-by-case basis. 

 

  1.   UK market
    • Strict control measures at PVG airport have resulted in 40% flights being cancelled for the next month. Terminal workers are still adhering to the closed loop system, so PVG is also operating with less than 50% of the usual manpower. 
    • There have been some large bookings from the likes of Dell, HP and Apple so space situation is worsening and rates into the UK have increased.
    • Market rates are high due to lack of capacity and high demand.
    • Large shipments should be booked well in advance to allow time to find space.
    • Rates and space must be checked on a case-by-case basis. 

Americas

  • The airfreight market is slowly beginning to stabilise, but this depends on the trade lane in which the shipment is moving. Some airlines are beginning to publish tariffs again and honouring. them when space is available. Other airlines are still not publishing rates or schedules. Depending on destination and the backlogs, some airlines will only move cargo on express or priority rates. 
  • 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 as there seems to be enough capacity to meet demand.
  • USA is set to lift travel ban for most noncitizens from November, so long as they are vaccinated. The eased rules are expected to drive up demand for transatlantic travel. This is good news for the air freight industry as this will no doubt bring more flights and capacity for cargo.

Road

UK Haulage

Be Prepared – New Import Controls EU-to-GB from 1 Jan 2022

Europe is suffering from a shortage of 400,000 drivers, with much of the demand based in the UK, a situation expected to get considerably worse by January, when new UK-EU border controls come into force.

Changes to take effect on 1 January 2022

  • Full customs declarations and controls
  • Pre-notification of Sanitary and Phytosanitary (SPS) goods (extended from 1 October 2021).

Advance Notice – Trailer Availability

Please be aware that there is a European bank holiday on the 1st November therefore we anticipate shortage of availability and delays are likely to occur. Plan ahead and allow extra time for your products to be delivered.

European Bank Holidays

October 2021

October 26th = Austria

October 28th = Czech Republic, Cyprus, Greece

October 29th = Turkey

October 31st = Germany (Regional) and Slovenia

 

November 2021

1st November = Austria, Belgium, Bosnia and Herzegovina, Croatia, France, Germany, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain, Switzerland

2nd November = Belgium (Regional), Lithuania

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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