Weekly Market Updates

Zencargo Market Update: 10th October

Oct 10, 2022

Spot rates may be declining, but let’s not forget about inflation

Over the past few months, we’ve all witnessed a decline in spot rates on the main trade routes from Asia to the USA and to Europe.

Although freight rates have been declining at such a rapid place, inflationary pressures on other parts of the supply chain are still adding to costs. 

For example, in one of our earlier market updates, we spoke about the Suez Canal Authority increasing their transit tolls by 10% for dry bulk ships and cruise ships and 15% for all other vessels. This decision takes into account the current global inflation rates as well as an increase in energy prices. 

Therefore, it is important to keep an eye out for other supply chain costs that are at risk of being affected by inflationary pressures to stay competitive and to keep costs low. 

China

Ocean

  • Chinese markets are due to reopen on 10th October after taking a break for the Golden Week holiday. 
    • A rise in Covid-19 cases in the country is raising concerns due to China’s zero-Covid policy. 
    • China is home to the world’s largest ports and another lockdown similar to the one in Shanghai earlier this year will no doubt disrupt supply chains. 
    • If another lockdown was to happen in cities with major ports, factory production, trucking services and port operations would be restricted. 
  • Equipment table below
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
YANTIAN Normal Normal Normal
NINGBO Normal Normal Normal
QINGDAO Normal Normal Normal
XIAMEN Normal Normal Normal
DACHANBAY Normal Normal Normal
SHEKOU Normal Normal Normal
MSK QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
TIANJIN Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
Nanjing Normal Normal Normal
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
DACHANBAY Normal Normal Normal
SHEKOU Normal Normal Normal
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
NANSHA 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
XIAMEN Normal Normal Normal
SHEKOU Normal Normal Normal
NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
OOCL YANTIAN Normal Normal Normal
NANSHA Normal Normal Normal
SHANGHAI Normal Normal Normal
HONGKONG Normal Normal Normal
SHEKOU Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
XINGANG Normal Normal Normal
YANTIAN Normal Normal Normal
XIAMEN Normal Normal Normal
SHEKOU Normal Normal Normal
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 Normal Normal Normal
NANSHA Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
HONGKONG Normal Normal Normal
NINGBO Normal Normal Normal
SHEKOU Normal Normal Normal

Air

Central China to USA and Europe 

  • Space is tighter compared to last week from SHA to both the USA and Europe due to the end of Golden Week. 
    • Rates have increased significantly to both lanes compared to last week. 
  • Rates have increased from NGB to USA and Europe this week.

North China to USA and Europe 

  • The air market in North China is busier due to the end of the national Golden Week holiday.
    • Rates have increased from TSN to Europe and the USA. 
    • Rates have also increased from PEK to Europe and the USA.

South China to USA and Europe 

  • Compared to last week, space is tighter between CAN and Europe and the USA which has caused rates to increase. 
  • Rates remain the same from SZX to Europe and the USA and also from XMN to Europe and the USA.
USA

Ocean

  • Ocean carriers may decrease capacity on the Transpacific lane, especially from Asia to the US West Coast to balance supply and demand and keep rates stable. 
    • According to the Freightos Baltic Index, the spot rate for a 40ft container has fallen by 20% last week, dropping by two-thirds since May. 
    • The spot market continues to fall so we suggest that you speak with us or your freight forwarding partner to understand what the best rates and space is for your company. 
  • The International Longshore and Warehouse Union and the Pacific Maritime Association are still negotiating a new contract for 22,000 dockworkers on the US West Coast. 
    • There has been a dispute around the assignment of work at a terminal in Seattle which has caused a delay in discussions. 
    • Jurisdiction as to what sort of jobs the union’s members get to perform still remains as a point of contention between the ILWU and the terminal in Seattle. 
Benelux

Ocean

  • At the PSA terminal at the Port of Antwerp in Belgium, yard utilisation is at a good operational level. 
    • Labour availability is good but reefer plugs and empty storage areas are highly utilised.
  • At the ECT terminals at the Port of Rotterdam in the Netherlands, yard utilisation levels are moderate but increasing.
    • Labour availability is sufficient but the lack of quay cranes combined with increasing yard utilisation levels may cause operational restrictions. 
    • Dwell times are also increasing and off-yard storage for long dwelling imports is fully utilised at 100%. 
    • Berths are under pressure with new services pushing into the terminal.
  • At the Rotterdam World Gateway in the Netherlands, yard utilisation is high and reefer plugs are limited. 
    • Labour availability is sufficient but operational restrictions are still expected. 
    • Feeders and barges are operating normally. 
UK and Rest of Europe

Ocean

  • The Port of Liverpool has announced that they will be making redundancies due to a deterioration in container volumes. 
    • On 3rd October, dock workers took part in a two-week strike due to a dispute of pay.
    • They will again walk out from 11th October to 17th October. This time they will be joined by senior control room operators. The total number of workers participating in the strike action will total to over 600 people. 
    • Peel Ports announced that they had offered workers a 10.2% increase in basic pay however, with the cost of living increasing, Unite, the worker’s union, has pushed for a higher offer. 
    • The announcement to cut jobs from Peel Ports is likely to strain relationships even further. 

 

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.

 

October 10th – Austria

October 12th – Spain

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

October 31st – Germany*, Hungary, Ireland, Slovenia

 

November 1st – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

November 2nd – Belgium*, Lithuania

November 5th – Finland, Sweden

November 9th – Spain 

November 11th – Austria, Belgium, France, Poland

November 15th – Austria, Belgium

November 16th – Germany

November 17th – Czech Republic, Slovakia 

November 18th – Croatia, Latvia 

 

*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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