Weekly Market Updates

Transport Update 6th December

Dec 06, 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: Schedule reliability among global container lines remains low

 


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In focus: Schedule reliability among global container lines remains low

New data released by Sea-Intelligence shows that schedule reliability remains low for containerships with only 34.4% of containerships on schedule during October 2021. This remains at the bottom of the range as previous Sea-Intelligence reports have shown schedule reliability to be between 34 and 40% for all of 2021. On a year-on-year basis, schedule reliability in October 2021 was down by 18% versus 2020.

The only ‘positive’ is that schedule reliability is not plummeting further as there was a slight improvement of just four tenths of a percentage point in October versus September. While ports and shippers are reporting progress on reducing congestion, the expectation is that it will be at least 2022 before liner companies will experience significant improvements in their operations.

Ocean

Asia → North America (Transpacific Eastbound)

Rates

  • Rates remain high between Vietnam and the US. 
    • From Ho Chi Minh City to Los Angeles, rates are $13,000 per 40ft.
    • Rates are $16,000 per 40ft from Ho Chi Minh City to New York. 
  • The Freightos Baltic Index rates on the Transpacific route has increased for both the East and West Coast.
    • On the West Coast, rates have increased by 1% to $14,825 per 40ft.
    • Rates have increased by 1% on the East Coast to $16,772 per 40ft.

Ports

  • The record volume of cargo moving through Long Beach and Los Angeles is likely to continue amid high consumer demand for goods.
    • The two ports together make the biggest gateway for ocean trade in the US, handling more than one-third of inbound containers. 
    • The bottlenecks at West Coast ports are tying up container capacity and underpinning soaring rates for transpacific ocean freight.
    • 49 container vessels were anchored off the southern coast of California last week, an improvement from 80 vessels waiting a few weeks ago. 
  • Companies operating at Long Beach and Los Angeles have agreed to eliminate fees for shipping boxes picked up at night and on weekends, instead of during peak hours. 
    • CMA CGM Group has offered as much as $200 per container removed from terminals to incentivise importers to clear the ports’ congestion. 
    • They will also financially support the Fenix Marine Services terminal in expanding its hours of operation so that containers can be picked up day and night, seven days a week. 
  • The Port of Seattle has announced that they will be charging a dwell fee for containers lingering longer than five days at terminals, 5, 18 and 30. 
  • The Port of Oakland reported a cargo volume decline in October of 20% year-over-year. 
    • Unlike the other West Coast ports, Oakland has not experienced supply congestion as some carriers have chosen to bypass the port following delays at California ports. 
    • Oakland has noted that 43% fewer ships have stopped at this port this October compared to October 2020.
City Soonest Availability Date Important Note! Notice Required (Estimated)
ATLANTA 12/8 (chassis shortage) Export Congestion / limited hazardous availability 1.5 weeks
BALTIMORE No current capacity issues, please send your dispatch
BIRMINGHAM 12/22 Export Congestion 3 weeks
BOSTON No current capacity issues, please send your dispatch
BUFFALO No current capacity issues, please send your dispatch
CHARLESTON 12/22 SPOT PRICING MAY APPLY 3 weeks
CHARLOTTE 12/14/2021 (chassis shortage) 2 weeks
CHICAGO 12/15 (chassis shortage) SPOT PRICING MAY APPLY Export Congestion 3 weeks
CINCINNATI 12/13 (Chassis Shortage) 2 weeks
CLEVELAND 12/7 Export Congestion 1 week
COLOMBUS No current capacity issues, please send your dispatch
DALLAS No current capacity issues, please send your dispatch
DENVER Local OPEN Road 12/6 (Chassis Shortage) Export Congestion 2 days local / 1.5 weeks for road moves
DETROIT 12/9 (Chassis Shortage) Export Congestion 1.5 weeks
EL PASO No current capacity issues, please send your dispatch
HOUSTON 12/13 Local 12/20 Road (container and chassis shortage) Export Congestion / Limited availability for DFW area / Chassis shortage 2 weeks local/3 weeks road
HUNTSVILLE 12/9 1.5 weeks
INDIANAPOLIS 12/21 (chassis shortage) Export Congestion 3 weeks
JACKSONVILLE No current capacity issues, please send your dispatch
KANSAS CITY 12/15 (Chassis Shortage) Export Congestion 2.5 weeks
LAREDO No current capacity issues, please send your dispatch 2 weeks
LOS ANGELES NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES Limited reefer & hazardous availability Not accepting new orders
LOUISVILLE 12/8 (Chassis Shortage) SPOT PRICING MAY APPLY Export Congestion 2 weeks
MEMPHIS 12/8 (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 2.5 weeks
MINNEAPOLIS 12/9 (Chassis shortage) SPOT PRICING MAY APPLY 1.5 weeks
MOBILE LOCAL 12/8 ROAD 12/30 (Chassis and Container Shortage) EXTREMELY limited availability for moves over 300 miles and/or OW loads 1.5 weeks local / 4.5 weeks road
NASHVILLE 12/7 (Chassis shortage) Export Congestion 1 week
NEW ORLEANS 12/16 (Chassis Shortage) Very limited on triaxles/overweight 2.5 weeks
NY/NJ 12/21 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 12/7 Very limited triaxles 1 week
PHILADELPHIA 12/15 (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 12/9 (chassis shortage) Export Congestion – limited availability for triaxles. 1.5 weeks
SALT LAKE CITY No current capacity issues, please send your dispatch
SAVANNAH 12/20 (Chassis shortage) SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability 4 weeks
SEATTLE/ TACOMA 12/27 (chassis shortage) SPOT PRICING WILL APPLY Very Limited availability for exports and moves out of Tacoma ports 4 weeks
TAMPA No current capacity issues, please send your dispatch

 

Asia → Europe (Far East Westbound)

Rates

  • The Freightos Baltic Index rates vary on the Asia to Europe route. 
    • Rates have decreased by 0.2% to $14,345 per 40ft between Asia to North Europe.
    • On the other hand, rates have increased on the Asia to Mediterranean route by 2% to $13,211 per 40ft. 

Equipment

  • See below

Ports

  • Low water levels along North Europe’s inland waterways means barges are less likely to carry full loads.
    • In the next few days, a level below 80cm is forecasted for the Kaub Gauge. 
    • Therefore, barges (depending on type) can only transport around 27% of capacity. 
    • Should levels fall below 81cm, Contargo, a logistics service provider will implement a ‘low-water surcharge’ of €175 per teu and €225 for 40ft containers.

 

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

 


Europe→ USA (Transatlantic Westbound)

Rates

  • Rates have decreased by 3% between the North America East Coast to North Europe. This has gone down to $564 per 40ft.

Air

Asia 

 Central China to USA and Europe

  • The US and EU markets are still short of space.
    • Rates are increasing for both destinations from Shanghai. 
    • Covid restrictions are still in place at PVG Airport.
      • Over 40% of cargo flights are cancelled
      • Terminals are at 50% in terms of labour resources
    • Rates to the USA and Europe have increased again.
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

 

North China to USA and Europe

  • Rates have increased between TSN Airport to the USA and Europe. 
  • KE/OZ can provide space for urgent cargo to both destinations. 
  • Rates from PEK Airport have increased compared to last week to the USA and Europe. 
    • Space is getting tight due to peak season and Covid testing. 
  • It is advisable to confirm rates and space 3-4 days in advance. 
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis. 

 

South China to USA and Europe

  • The air rate has increased significantly from CAN airport to the USA and Europe and space is relatively limited. 
  • At SZX Airport, rates have decreased to the USA; however, they have remained stable and high for Europe. 
  • Space to the USA and Europe from XMN Airport is tight. Rates have increased for both destinations again. . 
  • Bookings should also be made in advance and rates and space need to be checked with your carrier on a case-by-case basis.

Americas

  • Dallas/Fort Worth (DFW) International Airport is set for a busy year as cargo volumes are just short of the 1m tonne mark. 
    • However, 6 years ago, DFW have set a strategy in place by using ground handling data to develop perishables facilities and investing in equipment and software.
    • They invested in software to speed up the processing of trucks with a vehicle booking system. 
    • The result of this strategy, has helped to deal with cargo volumes this year.
    • DFW is now looking to develop new cargo facilities to provide space for high volumes- 15,000 square metres of warehouse space and 4,000 square metres of office space.
    • E-Commerce is also an area they are looking to grow in their business strategy. 

Europe/UK

  • Air France Cargo and Delta Cargo are expected to see delays at Charles de Gaulle Airport following a strike.
    • Air France has warned that several Air France staff unions would strike from midnight on Friday until 6am today, but cargo would be affected for another 24 hours. 
    • The airline announced that it was cancelling all flights, including freighters, from Charles de Gaulle to Hong Kong until 26th March.

Road and Rail

REMINDER: 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-UK trade agreement. Suppliers’ declarations will likely 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.

 

Frustration over restrictive measures causing severe Austrian traffic jams

The International Road Transport Union (IRU) and 12 European road haulage associations have renewed their calls for the EC to “stop Austria’s illegal anti-transit measures”, which have escalated in recent weeks in the Tyrol region and led to huge traffic jams.

According to the IRU, Austrian restrictions on the number of trucks that can transit the Tyrol region, which links the Brenner Pass on the Italy-Austria border with Germany, is resulting in severe congestion. Queues of up to 70km have recently become a regular occurrence in Bavaria. The construction of the Brenner Tunnel is not scheduled to be completed until 2033 and the only other alternative for intra-European overland freight is rail, which remains severely constrained by capacity.

 

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.

December 6th – Spain, Finland

December 7th – Italy (Milan Only)

December 8th – Austria, Italy, Portugal, Malta, Macedonia, Spain

December 13th – Malta

December 24th – Bulgaria, Czechia, Estonia, Latvia, Lithuania, Slovakia

December 25th – Austria, Belgium, Bulgaria, Bosnia & Herzegovina, Belarus, Switzerland, Cyprus, Germany, Denmark, Spain, Estonia, France, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Moldova, Malta, Norway, Netherland, Portugal, Poland, Romania, Sweden, Slovakia, Romania, Slovenia, Ukraine

December 26th –  Austria, Bulgaria, Switzerland, Cyprus, Czechia, Germany, Denmark, Estonia, Finland, Greece, Hungary, Croatia, Italy, Ireland, Luxembourg, Latvia, Lithuania, Norway, Netherlands, Poland, Romania, Sweden, Slovakia, Slovenia

December 27th – Great Britain

December 28th – Bulgaria, Great Britain

December 31st – Estonia, Latvia, Russia,

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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