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: Resumption of US travel comes in time for peak season
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In focus: Resumption of US travel comes in time for peak season
From 8 November, the US reopened its borders to fully vaccinated travellers for the first time since March 2020.
The transatlantic air cargo market is set to receive a major capacity boost as US air passenger services reopen to a large number of markets. This has relieved pressures on a tight market for importers and exporters in the lead up to Christmas and Black Friday.
The return of air freight in this market may result in a lower demand for ocean freight to and from the US, though this may not be evident for a few weeks.
Asia → North America
- Freight rate benchmarking platform, Xeneta, has revealed that rates have dropped by 8% this week.
- Pre-paid rates have decreased to below $10,000, compared to previous weeks where rates have gone up to $18,000.
- In general, advanced booking of up to three to four weeks is needed to book a chassis for the US.
- Maersk has announced an independent transpacific service called the ‘TP7’ service. The route will go from Shanghai – Yantian – Seattle – Yokohama, Busan, Qingdao – Shanghai.
- Wan Hai has added three more ports in their AA7 route. It includes Ningbo, Port Klang and Charleston. The route will be as follows: Ningbo – Taipei – Xiamen – Shekou – Cai Mep – Port Klang – New York – Charleston– Savannah – Ningbo.
- Hapag-Lloyd vessels have been waiting 13 days to berth in the Los Angeles area. Waiting times for a berth space can go up to 23 days in this area.
- Maersk vessels are waiting 14 days in Los Angeles, including port stays and operations.
- Bottlenecks are still severe on the US West Coast. Experts have estimated that these bottlenecks will not subside for the next six months.
- 16 vessels are waiting to berth at Seattle and berthing delays are up to three weeks at this time due to heavy volumes.
- 26 vessels are waiting to berth in Savannah. Ships are delayed up to 8 days on average awaiting berthing assignment.
- Long Beach and Los Angeles are seeing record volumes month after month.
- The average wait for a truck to pick up cargo is 6.7 days. The average wait for a train is 13 days.
- The new charges implemented by ports means that businesses will pay fines of $100 per day for cargo that is left at ports for over 9 days.
- Following the announcements of levies at Los Angeles and Long Beach, Tacoma has now followed suit.
- The port’s Husky terminal will not release containers that have been on the premises for more than 15 days unless importers pay a one-time charge of $315.
- From 15 November, customers of the Washington United Terminal face a long-term dwell fee of $310 for containers at the terminal for more than 15 days.
- These are one-off charges on top of late fees of $230 a day after a container has been at a terminal for more than four days.
|City||Soonest Availability Date||Important Note!||Notice Required (Estimated)|
|ATLANTA||11/12 (chassis shortage)||Export Congestion / limited hazardous availability||1.5 weeks|
|BIRMINGHAM||11/19||Export Congestion||2.5 weeks|
|CHARLESTON||11/17||3.5 – 4 weeks|
|CHARLOTTE||11/15/2021 (chassis shortage)||2 weeks|
|CHICAGO||11/22 (chassis shortage) SPOT PRICING MAY APPLY||Export Congestion||3.5 weeks|
|CINCINNATI||11/11 (Chassis Shortage)||1.5 weeks|
|CLEVELAND||8-Nov||Export Congestion||1.5 weeks|
|DALLAS||11/5||Export Congestion||1 week|
|DENVER||Local OPEN Road 11/8 (Chassis Shortage)||Export Congestion||2 days local / 1.5 weeks for road moves|
|DETROIT||11/18 (Chassis Shortage)||Export Congestion||2.5 weeks|
|HOUSTON||11/19 Local 12/2 Road (container and chassis shortage)||Export Congestion / Limited availability for DFW area / Chassis shortage||2.5-4 weeks|
|INDIANAPOLIS||11/11 (chassis shortage)||Export Congestion||1.5 weeks|
|KANSAS CITY||11/19 (Chassis Shortage)||Export Congestion||2.5 weeks|
|LOS ANGELES||NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES||Limited reefer & hazardous availability||Not accepting new orders|
|LOUISVILLE||11/11 (Chassis Shortage)||Export Congestion||1.5 weeks|
|MEMPHIS||11/10 (Chassis Shortage)||Export Congestion – EXTREMELY limited hazardous coverage||1 week|
|MIAMI||11/29/2021 SPOT PRICING WILL APPLY||VERY limited availability out of SFCT, Limited haz availability||4 weeks|
|MINNEAPOLIS||11/11 (Chassis shortage)||1.5 weeks|
|MOBILE||LOCAL 11/16 ROAD 11/29 (Chassis and Container Shortage)||EXTREMELY limited availability for moves over 300 miles and/or OW loads||2 weeks local / 4 weeks road|
|NASHVILLE||11/9 (Chassis shortage)||Export Congestion||1 week|
|NEW ORLEANS||11/16 (Chassis Shortage)||Very limited on triaxles/overweight||2 weeks|
|NORFOLK||11/22 (Chassis shortage)||Very limited availability for PA moves||3 weeks|
|OAKLAND||11/1(Chassis shortage)||Export Congestion||4 weeks|
|OMAHA||11/9||Very limited triaxles||1 week|
|PHILADELPHIA||11/11 (Chassis shortage)||Limited availability for exports||1.5 weeks|
|PORTLAND||11/29||Chassis shortage, Very limited truck availability||3 weeks|
|SAINT LOUIS||11/11 (chassis shortage)||Export Congestion – limited availability for triaxles.||1.5 weeks|
|SAVANNAH||11/30 (Chassis shortage) SPOT PRICING WILL APPLY||Export Congestion / very limited haz and triaxle availability||4 weeks|
|SEATTLE/ TACOMA||11/24 (chassis shortage) SPOT PRICING MAY APPLY||Very Limited availability for exports and moves out of Tacoma ports||3 weeks|
Asia → Europe (Far East Westbound)
- Yang Ming are reducing their rates by $600 per 40ft for the second half of November.
- Spot rates are currently low in the prepaid market. This is due to the downfall of cargo in China, therefore more space has become available.
- See below
- The expected increase in capacity for the last quarter is 16%; however, 13% of it will be absorbed by port congestion. Therefore, there will only be an improvement of 3% for overall capacity.
- The latest number released for sea schedule reliability is 23.5%, meaning 76.5% of cargo arrived late at its destination.
- Exceptional waiting times at Felixstowe have forced 2M partners, Maersk and MSC, to temporarily skip this port on their AE7/Condot service. They will add a new call at Wilhelmshaven instead.
- The new North European rotation of the ‘AE7 / Condor’ for the remainder of this year will be: Wilhelmshaven – Bremerhaven (temporarily replacing Hamburg) – Antwerp – London-Gateway (UK eastbound call) and Le Havre.
Central China to USA and Europe
- The China International Import Expo is being held this week; nearly all preighters are cancelled this week.
- There has been no change on the epidemic at PVG airport and 40% of flights will remain cancelled for the next month. Terminal workers are still working in line with a closed loop system, therefore PVG is operating with less than 50% of its usual manpower.
- Rates from Shanghai this week are stable but still at a high level.
- Rates at Ningbo airport have increased this week. However, rates and space need to be checked with carriers on a case-by-case basis.
- Large shipments should be booked well in advance to allow time to find space.
- We are being told that space should be booked before final confirmation of rate.
North China to USA and Europe
- At TSN Airport, the air situation is critical in November. Rates are higher than last month as many flights were cancelled.
- Passenger flights need 10 days ahead to pre-book space.
- Please enquire and book space as early as possible.
- Air rates have remained the same for PEK airport this week.
- Heavy snow in Beijing has led to blocked highways, which has delayed trucks transporting cargo.
South China to USA and Europe
- Air rates have increased a lot at CAN airport and space is relatively limited.
- Space to the US is tight at SZX and XMN airports and rates have increased again this week.
- All rates need to be checked with carriers on a case-by-case basis.
- Major Trans-Atlantic airlines are reporting full planes on Monday as the U.S. reopens its borders to fully vaccinated travellers for the first time since March 2020.
- This has opened up much needed cargo space to a tight market in the weeks leading up to Black Friday and the holiday season.
- Group airlines were able to increase passenger capacity to 50% of 2019 levels.
- Major cities — and cargo gateways — New York, Miami, San Francisco and Los Angeles are experiencing especially strong customer demand.
- As the US reopens its borders, severe congestions at Heathrow could limit movements in the UK.
- LHR airport transit sheds are in turmoil as imports are taking up to five days to check in.
- Exports are queuing for hours, leading to freight missing flights.
European road freight rates at record highs
The European Road Freight Rate Benchmark for Q3 conducted by Ti, Upply and IRU shows that prices have hit historic highs across Europe, driven by a mix of robust economic growth, global supply chain bottlenecks, rising costs and scarce capacity.
- The Q3 2021 European Road Freight Rate benchmark index stood at 107.6, 3.0 points higher than in Q3 2020.
- Q3 2021 is the 5th consecutive quarter of rate increases and a 4% rise from the rates seen in Q2 2020.
- French domestic road freight rates continue rising steadily, increasing 3.5% year-on-year in Q3 2021.
- Freight rates are expected to rise further in Q4 2021 as demand increases and capacity remains tight.
Be Prepared – New Import Controls EU-to-GB from 1 Jan 2022
Europe is suffering from a shortage of 400,000 drivers, with much of the demand based in the UK, a situation expected to get considerably worse by January, when new UK-EU border controls come into force.
Changes to take effect on 1 January 2022:
- Full customs declarations and controls.
- Pre-notification of Sanitary and Phytosanitary (SPS) goods (extended from 1 October 2021).
European Bank Holidays – November 2021
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 11th – Belgium, France, Poland, Serbia, Austria (Regional)
November 17th – Slovakia, Germany (Regional), Czechia
November 18th – Morocco, Latvia, Croatia
November 30th – Romania
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.