Weekly Market Updates

Transport Update 29th November

Nov 29, 2021
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: Asia’s largest ports are showing signs that congestion is easing ahead of the holiday season

 


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In focus: Asia’s largest ports are showing signs that congestion is easing ahead of the holiday season

Asia’s congestion is easing at their largest ports and this is potentially a positive step for key trade gateways in the US that are still battling an influx of imports.

Total traffic in Shanghai-Ningbo declined by 0.2% from the previous week and Hong Kong-Shenzhen’s ship count dropped by 10.4%. Singapore saw a week-on-week drop of 14.7% as the November backlog looked to be largely clear.

However, experts have warned that there is still a significant risk of port impacts on supply chains. There is a potential for Covid outbreaks that will disrupt port operations and there is a risk of cargo surge as businesses are trying to push their cargo out now rather than wait for the rush before Chinese New Year.

 

Ocean

Asia → North America (Transpacific Eastbound)

Rates

  • According to the Freightos Baltic Index (FBX), rates have increased on the Asia to North America route. 
    • Rates have increased by 3% on the Asia to US West Coast route at $14,677 per 40ft. 
    • On the Asia to US East Coast route, rates have increased by 3% to $16,633 per 40ft.

Ports

  • Congestion at Southern Californian ports has not been affected by the failure to introduce the increased container dwell fee. 
    • After talks on the 22nd November, the San Pedro Bay ports announced that the container dwell fee would be deferred for a third time, and not ‘be considered before’ 29 November. 
    • This dwell fee has stated that a fee of $100 dollars will be charged per container per day for boxes remaining at terminals after nine days for truck movements, and after six days for rail.
  • The number of container ships waiting for berths and anchored off the ports of Los Angeles and Long Beach remain above 80. 
    • According to the Port of Los Angeles, the average wait time has increased to over 18 days. 
City Soonest Availability Date Important Note! Notice Required (Estimated)
ATLANTA 12/7 (chassis shortage) Export Congestion / limited hazardous availability 2 weeks
BALTIMORE No current capacity issues, please send your dispatch
BIRMINGHAM 12/7 Export Congestion 2 weeks
BOSTON No current capacity issues, please send your dispatch
BUFFALO No current capacity issues, please send your dispatch
CHARLESTON 12/17 SPOT PRICING MAY APPLY 3 weeks
CHARLOTTE 12/13/2021 (chassis shortage) 2 weeks
CHICAGO 12/13 (chassis shortage) SPOT PRICING MAY APPLY Export Congestion 3 weeks
CINCINNATI 12/6 (Chassis Shortage) 2 weeks
CLEVELAND 12/2 Export Congestion 2.5 weeks
COLOMBUS No current capacity issues, please send your dispatch
DALLAS No current capacity issues, please send your dispatch
DENVER Local OPEN Road 11/29 (Chassis Shortage) Export Congestion 2 days local / 1.5 weeks for road moves
DETROIT 12/2 (Chassis Shortage) Export Congestion 2 weeks
EL PASO No current capacity issues, please send your dispatch
HOUSTON 12/9 Local 12/16 Road (container and chassis shortage) Export Congestion / Limited availability for DFW area / Chassis shortage 3-4 weeks
HUNTSVILLE 12/3 2 weeks
INDIANAPOLIS 12/7 (chassis shortage) Export Congestion 2.5 weeks
JACKSONVILLE No current capacity issues, please send your dispatch
KANSAS CITY 12/6 (Chassis Shortage) Export Congestion 2 weeks
LAREDO No current capacity issues, please send your dispatch
LOS ANGELES NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES Limited reefer & hazardous availability Not accepting new orders
LOUISVILLE 12/6 (Chassis Shortage) SPOT PRICING MAY APPLY Export Congestion 2 weeks
MEMPHIS 11/30(Chassis Shortage) Export Congestion – EXTREMELY limited hazardous coverage 1.5 weeks
MIAMI 12/16/2021 SPOT PRICING WILL APPLY VERY limited availability out of SFCT, Limited haz availability 3.5 weeks
MINNEAPOLIS 12/1 (Chassis shortage) 1.5 weeks
MOBILE LOCAL 12/3 ROAD 12/20 (Chassis and Container Shortage) EXTREMELY limited availability for moves over 300 miles and/or OW loads 2 weeks local / 4 weeks road
NASHVILLE 11/30 (Chassis shortage) Export Congestion 1 week
NEW ORLEANS 12/7 (Chassis Shortage) Very limited on triaxles/overweight 2 weeks
NY/NJ 12/13 4 weeks
NORFOLK 12/20 (Chassis shortage) SPOT PRICING MAY APPLY Very limited availability for PA moves 3 weeks
OAKLAND 12/7(Chassis shortage) Export Congestion 1 week
OMAHA 11/29 Very limited triaxles 1 week
PHILADELPHIA 12/9 (Chassis shortage) Limited availability for exports 2.5 weeks
PITTSBURGH No current capacity issues, please send your dispatch
PORTLAND 12/30 SPOT PRICING WILL APPLY Chassis shortage, Very limited truck availability 5 weeks
SAINT LOUIS 12/2 (chassis shortage) Export Congestion – limited availability for triaxles. 1.5 weeks
SALT LAKE CITY No current capacity issues, please send your dispatch
SAVANNAH 12/13 (Chassis shortage) SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability 4 weeks
SEATTLE/ TACOMA 12/30 (chassis shortage) SPOT PRICING WILL APPLY Very Limited availability for exports and moves out of Tacoma ports 5 weeks
TAMPA No current capacity issues, please send your dispatch

Asia → Europe (Far East Westbound)

Rates

  • According to the FBX index, rates between China and Europe have remained relatively stable.
    • On the Asia to North Europe route, rates have increased by 0.2% to $14,368 per 40ft. 
    • Rates have remained the same for the Asia to Mediterranean route at $13,014 per 40ft. 
  • Following great increases in FAK rates over the past 18 months, shippers now face significant increases in bunker surcharges.
    • The price of Rotterdam-sourced low-sulphur fuel oil (LSFO) jumped last week by $14.50 per tonne, to $573.50, with the cost of heavy fuel oil (HFO) increasing by $13, to $440.50 per tonne.
    • The soaring cost of bunkers has triggered an uplift in ocean carrier fuel mechanisms, with several lines now rolling out increased surcharges for next month.
      • Maersk advised customers this week of an increase in its environmental fuel fee (EFF) for all Maersk Spot and contract cargo for vessels sailing from 1 December, “until further notice”.

Equipment

  • See below

Ports

  • Berthing and landside delays at Felixstowe remain ‘critical’.
    • 2M partners Maersk and MSC have extended the omission of the AE7/Condor loop until March next year. 
    • Maersk have announced that Felixstowe import containers would continue to be overlanded at Wilhelmshaven and relayed via shuttle service. 
    • MSC’s UK boxes will land at Antwerp and be relayed to Felixstowe. 
  • Antwerp is also positioning itself to be the UK’s gateway to Europe. 
    • The merger of the ports of Antwerp and Zeebrugge into the Port of Antwerp-Bruges will create a new ‘super port’ which would be greater than Europe’s largest port, Rotterdam. 


Europe→ USA (Transatlantic Westbound)

Rates

  • FBX rates have increased slightly on the Transatlantic route, with rates now up by 0.1% to $17,451 per 40ft. 
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 Normal
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 Shortage
NINGBO Normal Normal Shortage
QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
XINGANG Normal Normal Normal
YML YANTIAN Normal Normal Normal
SHEKOU Normal Shortage Shortage

 

Air

Asia 

China 

    • Many flights have been cancelled because of the China International Import Expo. 
    • Air rates are increasing sharply on all lanes and airlines have stopped offering rates with long validity.
    • Capacity and space to the US, EU and Australia are very tight.
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

Airport congestion and labour shortages are impacting the collection of cargo

While congestion at several airports has eased, such as at Amsterdam and Chicago O’Hare, handlers are experiencing issues in freight movement. 

Forwarders are struggling to obtain drivers and warehouses are full. With nowhere else for cargo to go, this means dwell times are increasing. Because of this congestion, forwarders can expect to see a rise in terminal handling charges (THCs) next year. 

There is also another issue on the terminal handling side as well. Heathrow, for example, must move air cargo by truck through a cargo tunnel at the airport, which requires different drivers despite the shortages. The World Freight Service is also 1,500 staff short in the US which has also impacted the movement on cargo. 

Road and Rail

China-Europe rail freight volumes have passed last year’s total

According to China Railway, between January-October there were 12,605 train trips, carrying 1.22 million TEU, an increase of 26% and 33% respectively, year-on-year. The operator has also noted that there were proportionately more return trips in the first 10 months than last year, with inbound services rising to 81% of outbound. 

The number of new services also increased, accounting for 35% of overall trips, compared with 20% during the first half. 

Prepare for full customs controls from 1st January 2022

From the 1st January 2022, the current easements on full customs controls of goods moving into the UK will be removed, and customs checks will be introduced. Prior notification of agri-food imports will be required, but how soon before shipment is needed will differ as time limits for this will vary depending on transport route.

The temporary easement for the requirement to hold supplier declarations (where required) prior to issuing statements on origin for export to the EU will also cease for businesses using the EU-EU trade agreement. Suppliers’ declarations will usually be necessary where you purchase goods for onward sale unaltered, or you need evidence of the originating status of production inputs to calculate the origin of your goods.

New Post-Brexit Border controls in April 2022 could cause significant delays at Dover

The new system for monitoring non-EU travellers entering the bloc’s Schengen Area is scheduled to be implemented in April next year. Elizabeth de Jong, director of policy at trade body Logistics UK, said it would be “very bad news” if lorry drivers are required to leave their vehicles to undergo biometric checks. It is expected that if these checks happen then it could lead to huge traffic delays and congestion at Dover.

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

December 13th – Malta

 

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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Kim Wan
Kim Wan

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