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: New transpacific capacity adds more congestion, India disruption raises rates

 


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Ocean

Asia → North America

Rates

  • Hapag-Lloyd and MSC have announced increases in rates from the Middle East and the Indian Subcontinent to several ports in America, which will be effective from mid-September and October.
    • Hapag-Lloyd will set a General Rate Increase of $500 on all 20′, 40′ dry and reefer containers from the Middle East to the East Coast South America, including high cubes, from 15th September.
    • For port locations, they’re also applying GRIs from India and the Middle East to US and Canada:
      • $800/ 20′ standard and reefer cargo.
      • $1,000 per 40′ standard, reefer and HC containers.
    • For ramp locations, a GRI of $1,800 per 20′ standard and reefer box and $2,000 per 40′ standard, reefer and HC cargo to US and Canada.
  • Hapag-Lloyd will also apply a new GRI from Indian Subcontinent (ISC) and Middle East to USA and Canada from October 1st of $1600-$2000 for all containers.
  • New MSC rates are as below:

Capacity

  • HMM has extended its “extra loader” services to Australia, with services from Korea to Melbourne and Sydney, in addition to existing ad hoc services to the US.
  • Carriers have added capacity by double-digit percentages on the Trans-Pacific trades (22% to the West Coast and 14.4% to the East Coast) which will likely add to port congestion through the rest of the year.

Equipment

  • See below

Ports

  • The Marine Exchange of Southern California reports 60% more container ships at anchor than at berth at Los Angeles/Long Beach terminals.
    • US ports remain extremely congested, with Georgia’s Savannah congestion rate currently the highest in the U.S. at 82%, ahead of Seattle at 65% and Los Angeles at 54%.
  • Intermodal carriers continue to limit capacity as they work through congestion inland, particularly in the Chicago area, including CSX and other Class I rail companies.

Asia → Europe (Far East Westbound)

Capacity

  • Rates remain stable from the Far East to EU.
  • Rates from India to EU are increasing with many carriers due to capacity issues:
    • Hamburg Sud announced a GRI of $800.
    • CMA announced a GRI of $400.
    • MSC raised prices, while also moving to bi-weekly price validity.

Capacity

  • Booking four weeks ahead remains effective for finding capacity.
  • The Commerce Ministry in India has assured that they will announce short-term measures to ease the acute container shortage and rising box prices. Possible measures include sourcing new equipment, price controls, regulation on container management.
  • Two new charter operations have added capacity to China – EU routes.
    • Italian forwarding company RifLine has fixed two 1,100 – 1,200 teu ships for a new direct connection between the Far East and Civitavecchia for a period for a period of eleven to thirteen months.
    • Meanwhile joint venture Eshipping Gateways will be bringing 2,000-3000 teu shipments into Zeebrugge and Hamburg ports.

Equipment

  • See below

Ports

  • Hapag-Lloyd has announced that the eastbound calls at Jebel Ali of the North Europe – Middle East – Far East ‘FE3’ loop of THE Alliance will be temporarily skipped.
  • Asia-North Europe on-time performance in July 2021 fell to 22.2% compared to 90% in July 2020, according to data from Sea-Intelligence.
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Shortage
SHANGHAI Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Normal
MSK QINGDAO Shortage Shortage Shortage
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
Nanjing Shortage Normal Shortage
Xiamen Normal Normal Shortage
YANTIAN Shortage Normal Shortage
SHEKOU Shortage Shortage Shortage
NANSHA Shortage Normal Shortage
HONGKONG Normal Normal Normal
SHANTOU Shortage Shortage Shortage
ONE YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage Shortage
XINGANG Normal Shortage Shortage
QINGDAO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
NINGBO Normal Shortage Shortage
ZIM XIANGANG Normal Shortage Shortage
NINGBO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Shortage Shortage
HMM SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
MSC SHANGHAI Normal Normal Normal
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
EMC YANTIAN Normal Shortage Shortage
SHEKOU Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
QINGDAO Shortage Shortage Shortage
OOCL YANTIAN Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Shortage Shortage
SHANGHAI Normal Shortage Shortage
NINGBO Normal Shortage Shortage
YANTIAN Normal Shortage Shortage
SHEKOU Normal Shortage 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 Shortage Shortage
SHEKOU Normal Shortage Shortage

Air

Asia

US market

  • Rates have increased and space is extremely tight.
  • JFK is particularly bad with most space cancelled.
  • Uplifts are expected to be delayed and transit times will be longer.
  • Rates and space must be checked on a case by case basis.

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

  • Rates have increased and space is extremely tight.
  • AMS is one of the worst affected destinations, as they have had the most flights cancelled.
  • Uplifts are expected to be delayed and transit times will be longer.
  • Rates and space must be checked on a case by case basis.

UK market

  • Rates have increased and space is extremely tight.
  • Uplifts are expected to be delayed and transit times will be longer.
  • Rates and space must be checked on a case by case basis.

Americas

  • Rates to PVG will increase in the coming weeks as a result of the terminal closure.
  • Rates into UK and Europe remain mostly the same this week.
  • Space remains constricted due to reduced capacity and staff shortages.
  • 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

  • Rates from PVG will increase in the coming weeks as a result of the terminal closures
  • Rates to the US remain the same with no real increase
  • Capacity to most regions is still restricted

Road

Availability

Availability generally reliable across all routes and regions.

Rates

Rates remain stable across consolidated, groupage and dedicated trailers on other routes.

Customs

  • From 1 October, there will be new safety and security requirements surrounding exports with an expanded list of movements requiring exit summary declarations (EXS), raising complexity in GB-EU supply chains.
  • From the end of next month, shippers will be required to supply an EXS for further movements, like empties being moved under a transport contract to the EU and goods moving by vessels where there would otherwise be a requirement for an EXS.

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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