Weekly Market Updates

Transport Update 4th January

Jan 04, 2022
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: Ningbo sees another COVID-19 outbreak, creating possible delays in the supply chain.

 


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In focus: Ningbo sees another COVID-19 outbreak, creating possible delays in the supply chain

The city of Ningbo, home to the world’s largest port, reported 10 COVID-19 cases over the weekend. This has sparked increased testing of workers across most of the city and adding to delays among truck workers heading to the city’s container terminals.

The source of the outbreak has been located in Beilunm which has now gone into lockdown. Beijing’s zero-Covid policy has helped the region to clamp down on local outbreaks. However, the new threat of Omicron has lead to new outbreaks.

Businesses need to communicate with their forwarders in the event of any disruptions that may affect their exports.

Ocean

Asia → North America (Transpacific Eastbound)

Rates

  • Rates have decreased according to the Freightos Baltic Index.
    • From Asia to the West Coast, rates have decreased by 4% to $14,070 per 40ft.
    • Rates have decreased by 0.4% to the East Coast to $16,613.

Capacity

  • Wan Hai Lines is planning some important changes to its four Asia to US West Coast loops as the carrier has too many vessels caught up in the Los Angeles/Long Beach queue. 
    • From January, the Shanghai and Ningbo to Los Angeles ‘AA1’ service, previously operated with 4,250 to 5,600 teu ships, will be operated by five smaller 1,440 – 1,700 teu ships calling weekly at Shanghai, Qingdao, Oakland, Shanghai. 
    • Some of the larger ships leaving the ‘AA1’ loop will be redeployed in the Asia to US East Coast ‘AA7’ service or as extra sailers from China to the US East Coast ports of Charleston and New York.

Ports

  • The Port of Los Angeles and Long Beach has again delayed the implementation of a container dwell fee at its terminals.
    • This is the seventh week in a row that the container dwell fee has been postponed since its announcement at the end of October.
    • Since the program was announced on Oct. 25, the twin ports are reporting a decline of 43% in aging cargo on the docks, compared to a 46% reduction the week before and 47% the week before that.
    • Under the temporary policy approved by the Harbor Commissions of both ports, ocean carriers can be charged for each import container that lingers on docks. 
      • For truck-bound containers the fee will be assessed after 8 days of dwelling.
      • Rail-bound containers can be charged after 5 days.
      • The ports plan to charge ocean carriers in these two categories $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.
      • This fee applies to full units and will be the responsibility of the cargo owner and import customer. 
  • The Port of Los Angeles has also announced plans to begin charging ocean carriers a dwell fee for empty containers waiting in marine terminals to combat congestion.
      • This fee differs from the previously mentioned fee as it is applicable to empty units rather than full units. Shipping lines will be responsible for this fee. 
      • The fee is still subject to approval by the LA Harbour Commission and would take effect on 30th January 2022.
      • Under the policy, ocean carriers will be charged $100 for empty containers that have been sat at terminals for nine days, increasing in $100 increments per container per day until the container leaves the terminal. 
      • This will be similar to the import container dwell fee (mentioned above) which was announced in late October, which has yet to be implemented. 
    City Soonest Availability Date Important Note! Notice Required (Estimated)
    Atlanta 1/10 Export Congestion / limited hazardous availability – chassis shortage 2 weeks
    Baltimore 1/17 Chassis shortage 3 weeks
    Birmingham 1/11 Export Congestion 2 weeks
    Boston No current capacity issues, please send your dispatch
    Buffalo No current capacity issues, please send your dispatch
    Charleston 1/24 SPOT PRICING WILL APPLY 4 weeks
    Charlotte 1/4 Chassis shortage 2 weeks
    Chicago 1/13 SPOT PRICING MAY APPLY Export Congestion, chassis shortage 2.5 weeks
    Cincinnati 1/7 Chassis shortage 1.5 weeks
    Cleveland 1/7 Export Congestion 1.5 weeks
    Columbus No current capacity issues, please send your dispatch
    Dallas No current capacity issues, please send your dispatch
    Denver No current capacity issues, please send your dispatch Export Congestion
    Detroit No current capacity issues, please send your dispatch Export Congestion
    El Paso No current capacity issues, please send your dispatch
    Houston 1/10 Local 1/20 Road SPOT PRICING MAY APPLY Export Congestion / Limited availability / Chassis + Triaxle shortage 2 weeks local/3.5 weeks road
    Huntsville 1/6 1.5 weeks
    Indianapolis 1/6 Export Congestion 1.5 weeks
    Jacksonville 1/13 2 weeks
    Kansas City 1/10 Export Congestion / very limited triaxles / chassis shortage 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 1 /6 SPOT PRICING MAY APPLY Export Congestion, chassis shortage 1.5 weeks
    Memphis 1/3 Export Congestion – EXTREMELY limited hazardous coverage, chassis shortage 1 weeks
    Miami 1/10 SPOT PRICING WILL APPLY VERY limited availability out of SFCT, Limited haz availability 3 weeks
    Minneapolis No current capacity issues, please send your dispatch
    Mobile 1/10 SPOT PRICING MAY APPLY Equipment shortage and limited avail for moves over 300 miles or OW loads 2 weeks
    Nashville 1/4 Export Congestion, chassis shortage 1 week
    New Orleans 1/12 SPOT PRICING MAY APPLY Very limited on triaxles/overweight, chassis shortage 2.5 weeks
    NY/NJ 1/24 SPOT PRICING MAY APPLY Limited haz coverage 4 weeks
    Norfolk 1/27 SPOT PRICING MAY APPLY No current avail for NJ, NY, OH, or PA moves, chassis shortage 4 weeks
    Oakland 1/8 Export Congestion, chassis shortage 1 week
    Omaha 1/3 Very limited triaxles 1 week
    Philadelphia 1/12 Limited availability for exports, chassis shortage 2.5 weeks
    Phoenix No current capacity issues, please send your dispatch
    Pittsburgh No current capacity issues, please send your dispatch
    Portland 1/20 SPOT PRICING WILL APPLY Chassis shortage, Very limited truck availability 5 weeks
    Saint Louis 1/7 Export Congestion – limited availability for triaxles, chassis shortage 1.5 weeks
    Salt Lake City No current capacity issues, please send your dispatch
    San Antonio No current capacity issues, please send your dispatch
    Savannah 1/13 SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability, chassis shortage 3 weeks
    Seattle/Tacoma 1/27 SPOT PRICING WILL APPLY Very Limited availability for exports and moves out of Tacoma ports, chassis shortage 4 weeks
    Tampa No current capacity issues, please send your dispatch
    Wilmington 1/6 2.5 weeks

 

Asia → Europe (Far East Westbound)

Rates

  • According to the FBX, rates have decreased on the Asia to Europe route. 
    • Rates have decreased between Asia to North Europe by 1% to $14,365 per 40ft.
    • On the Asia to Mediterranean route, rates have remained the same at $13,567 per 40ft.

 

Air

Asia 

  • The Hong Kong Government will tighten its quarantine measures for air cargo crew to minimise the spread of COVID-19. 
    • Air cargo crew members will be required to undergo compulsory quarantine at a hotel for three to seven days upon arrival in Hong Kong.
    • This is in response to a rise in COVID-19 cases with the Omicron variant. 
    • Cathay Pacific has suspended all long-haul cargo and cargo-only passenger flights for seven days from 31st December 2021.
  • China’s first cargo airport, the Ezhou Huahu Airport, has hit a development milestone. 
    • A Cessna 560 airplane carried out flight verification of the Ezhou Huahu Airport in Hubei on Dec 29, marking the completion of the cargo-oriented airport.
    • The airport serves as an air cargo hub and feeder airport for passenger transport.

Asia

  • Philadelphia International Airport (PHL) has secured US Federal Government funding to roll out its $1.2bn cargo expansion programme. 
    • PHL’s cargo expansion programme, which was announced in June, will see the airport increase its air cargo facility footprint by 136 acres and almost triple its cargo building square footage from 600,000 to 1.4m.

Europe/UK

  • Airbus and Boeing are ramping up their production in response to the air freight market. 
    • Airbus are forecasted to deliver 880 new freighters whilst Boeing are predicted to deliver 890 new freights by 2040.

Road and Rail

REMINDER: Prepare for full customs controls from 1st January 2022

As of the 1st January 2022, easements on full customs controls have been removed and customs checks have been introduced. Prior notification of agri-food imports are now required, but how soon before shipment is needed 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 has ceased for businesses using the UK-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.

European Bank Holidays

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.

January 1st – AT, AD, BE, BG, BA, BY, CH, CZ, DE, DK, ES, EE, FR, FI, FL, GB, GR, HU, HR, IT, IE, LU, LT, LV, MD, ME, NO, NL, PT, PL, RO, RU, SE, SK, SI, RS, TR, UA
January 2nd – BA, BY, CH, ME, RO, SI
January 3rd – BG, GB, RS
January 4th – RU
January 5th – RU
January 6th – AT, AD, CH*, DE*, ES, FI, FL, GR, HR, IT, ME, PL, SE, SK
January 7th – BY, MD, ME, RU, RS, UA
January 8th – MD
January 9th – BA
January 24th – RO
*Not in all regions

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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