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: Yantian’s moving, but ripples are yet to bite

Assessing the Yantian hangover

The ocean market is still feeling the effects of the Yantian shutdown, even as the port returns to near full operational capacity. A recent Maersk advisory said over 300 sailings from all liners would be omitting Yantian and diverting to other ports due to estimated waits of over a fortnight. Vespucci Maritime CEO Lars Jensen has previously predicted that Yantian will need more than 80 days to clear the 700,000+ TEU queuing outside its quays.

Ocean

Asia → North America

Rates

  • Hapag-Lloyd has announced a new PSS effective July 18 applicable for all dry, reefer, flat rack and open top containers from East Asia to US and Canada:
    • USD 1000 per all 20′ container types
    • USD 2000 per all 40′ container type

Capacity

  • New peak season services have been announced:
    • BAL Container Line (BAL) is preparing to launch of a weekly
      China – Los Angeles service, advertised as the ‘CPX’.
    • Matson has announced the launch of a new seasonal China – USWC ‘China – California Express’ service (CCX) at the end of July.
    • COSCO and OOCL have started a new China – Vietnam – US East Coast service which also calls at Piraeus both ways.

Equipment:

  • Shippers should still expect a delay of around three days waiting to collect containers once discharged.

Ports

  • Operational situations have improved in LA/ Long beach but there are still several days wait to berth for inbound vessels.

Asia → Europe (Far East Westbound)

Rates

  • MSC has released a GRI for 40ft containers of $4800
  • This has not been followed by other carriers, who are applying a GRI of $1000/ 40ft, in line with previous GRIs.

Equipment

  • There is currently a severe shortage of 40ft high cubes, but still availability for standard 40ft containers.
  • There is also available stock of 20ft containers.

Ports

  • 2M partners Maersk and MSC advised customers that due to congestion at its Eurogate Terminal, Hamburg would be omitted on their AE7/Condor loop from Asia for a further four weeks. The carriers would instead call at Bremerhaven.
  • MSC reminded shippers that the carriage would cease after being discharged at Bremerhaven, with shippers responsible for pick-up and any local charges incurred.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Shortage Shortage
MSK QINGDAO Shortage Normal Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
NANJING Shortage Normal Shortage
XIAMEN Shortage Normal Shortage
YANTIAN Shortage Normal Shortage
SHEKOU Shortage Shortage Shortage
NANSHA Shortage Normal Shortage
HONGKONG Shortage Normal Shortage
SHANTOU Shortage Normal Shortage
ONE YANTIAN Normal Normal Normal
SHEKOU Normal Normal Shortage
XINGANG Normal Shortage Shortage
QINGDAO Normal Normal Shortage
SHANGHAI Normal Normal Normal
NINGBO Shortage Normal Shortage
ZIM XIANGANG Normal Shortage Shortage
NINGBO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Shortage Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
MSC SHANGHAI Normal Normal Normal
NINGBO Shortage Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Shortage Normal Shortage
EMC YANTIAN Normal Normal Shortage
SHEKOU Shortage Normal Shortage
NINGBO Shortage Normal Shortage
SHANGHAI Normal Shortage Shortage
QINGDAO Normal Shortage Shortage
OOCL YANTIAN Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
YANTIAN Shortage Shortage Shortage
SHEKOU Shortage 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 Normal Shortage
SHEKOU Normal Normal Shortage

Europe → USA (Transatlantic Westbound)

Rates

  • July rates indicate a GRI of $1000/ 40ft container across most carriers.

Capacity:

  • ONE and Yang Ming are reported to not have space until mid-August, though MSC have some availability.

Ports:

  • Berthing is running relatively smoothly with less than 24 hrs wait, but inland operations and container movements are still delayed, taking two days after unloading due to a shortage of truckers.


Air

Asia

US market

  • There has been an increase in airfreight volumes this week and space is extremely tight.
  • As a result the rates have increased by approx $2.00/kg this week. We have been advised that only the highest paying cargo is guaranteed to make it on to a flight
  • CA cancelled its Cargo flight from PVG to JFK
  • CZ cancelled two flights from PVG to ORD on Wed and Sat separately
  • Spot rates available for heavy/dense cargo as well as volume cargo.
  • For all airports – rates and space must be checked on a case by case basis.

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

  • There has been an increase in airfreight volumes this week and space is extremely tight.
  • As a result the rates have increased slightly this week and only the highest paying cargo is guaranteed uplift.
  • Rates and space must be checked on a case by case basis.
  • Spot rates available for heavy/dense cargo as well as volume cargo.

UK market

  • Rates have gone up this week due to increase in volumes. Highest paying cargo is guaranteed uplift.
  • There are direct flights with CA/BA, AIR-AIR by SQ and normal air-truck service. Space using deferred carriers is fully booked.
  • Rates and space must be checked on a case by case basis.
  • Spot rates available for heavy/dense cargo as well as volume cargo.

Americas

  • Rates remain stable into Europe/UK/Asia
  • Space remains constricted due to reduced capacity.
  • There are still backlogs at the handling sheds at main airports, resulting in long queues when collecting/delivering cargo. This will likely get worse when the new screening regulations come into play on 1st July.
  • US hauliers are currently over capacity and over booked causing more delays.

Europe

  • Rates are stable into North America and Asia.
  • Capacity to most regions remains severely restricted.

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates are fluctuating in and out of Italy, but remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

Border situations have improved considerably with clearances running smoothly.

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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