Zencargo Market Update: 11th December 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, bookings for e-commerce cargo are decreasing, demand for general cargo has slowed and rates have stopped increasing. 
  • Rates remain at the same level as last week.
• From NGB to Europe and the USA, space is tight and final rates depend on a case-by-case basis. 
  • We suggest booking space 4-5 days prior to the cargo ready date.

North China to USA and Europe:

• From TSN to Europe and the US, rates continue to increase for Korean Airlines to both destinations. 
  • Space on Asiana Airlines is limited, rates have increased this week and in order to secure space, we recommend you book a week in advance. 
• From PEK to Europe and the US, rates have increased on most major airlines compared to last week and space is very limited. 
  • Major services from PEK to Europe include: Singapore Airlines, Cathay Pacific, Lufthansa, Air China, KLM, Air France, Japan Airlines.
    • It is advised to book space 7-8 days ahead of the cargo ready date. 
  • Major services from PEK to the US include: Cathay Pacific, Japan Airlines, All Nippon Airways and Eva Air. 
    • It is advised to book space 9-10 days ahead of the cargo ready date. 
• From TAO to Europe and the US, space remains limited and the estimated time of departure is 4-5 days to Europe and  5-6 days to the US after booking. 
  • Rates have remained level this week to both destinations but may increase due to the Christmas holidays. 
  • Airlines are still releasing spot rates for dense cargo but this will need to be checked on a case-by-case basis.

South China to USA and Europe:

• Compared to last week, rates have increased from CAN to Europe and remained the same from CAN to the USA. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From SZX to Europe and the US, the market is less busy this week and demand is lower. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From XMN to Europe and the US, the market remains the same as last week. 
  • Space continues to be limited. 
  • Final rates depend on a case-by-case basis.

India

• The flow of containers in and out of southern Indian ports faced severe disruption due to Cyclone Michaung, causing havoc in and around Chennai this week.
  • Chennai, Kattupalli, and Ennore, the three key container ports along the east coast corridor of India, had to cease operations for three days due to widespread adverse weather conditions, including torrential rains and flooding in Chennai.
  • Although the ports resumed vessel berthing, minimal export/import cargo flows and restricted access to inland areas were reported.
  • Maersk, with two weekly calls at Ennore, including the ME7 to Europe and the Chennai Express (CHX) to the Far East, reported a 24-hour berthing delay for its ME7 call, due to power supply problems. Import release from the port gates was expected to take some time.
  • Other carriers offering regular calls in the region also warned of cargo delays and customer service shortcomings. CMA CGM (India) noted significant disruptions affecting essential services like power, internet, and public transportation.

USA

Ocean

• The Biden administration has announced a series of measures to help elevate supply chain resilience.
  • The new White House Council on Supply Chain Resilience held its inaugural meeting on 27th November.
  • The Council is co-chaired by the national security and economic advisors, and members include nearly all members of the cabinet. This includes the secretaries of Commerce, Defense, Transportation, Labour, Treasury. 
  • The creation of the council is one of nearly 30 measures aimed at securing strategic supplies of critical medicines. 

Benelux

Ocean

• Last week, industrial action across Flemish waterways disrupted shipping operations at the Port of Antwerp, the second-largest container port in Europe.
  • Marine pilots and public service workers have taken part in the strikes, which has caused lock closures and congestion as unions VSOA and ACOD are protesting against reforms to the Flemish civil service statute.
  • Inchcape Shipping Services (ISS) reports 49 ships waiting at Antwerp, raising concerns about wider supply chain disruptions.
  • Hapag-Lloyd has warned of delays and disruptions in shipping schedules due to congestion but will continue to monitor the situation. 
  • Maersk has advised customers that they anticipate a minimum 48-hour waiting time and vessel schedule adjustments.
  • Negotiations between unions and Flemish Civil Service Minister Gwendolyn Rutten failed to reach a resolution last Tuesday. Unions have announced that they will continue their action until a constructive agreement is reached.

Germany

Rail

• Last Wednesday, a sudden 24-hour strike on Germany’s railways added to the challenges faced by Europe’s supply chain managers dealing with disruptions on Flemish waterways.
• The GDL union in Germany announced the strike on Wednesday, affecting both freight and passenger services. The industrial action was part of an ongoing dispute with state operator Deutsche Bahn (DB).
• Talks between DB and the GDL broke off at the end of November, with the union seeking a reduction in working hours from 38 to 35 a week, a monthly salary increase of €555, and a one-off compensation bonus of €3,000. DB has rejected changes in working hours but offered an 11% increase in wages.

UK

Road

• The UK Government has announced reforms to the Driver Certificate of Professional Competence (DCPC) in response to calls for increased flexibility by the Road Haulage Association (RHA).
  • The proposed reforms, effective from summer 2024, include reducing the minimum course length from seven hours to three and a half hours while maintaining the total of 35 hours every five years.
  • These changes also decouple e-learning from trainer-led courses, allowing for more at-home learning for drivers operating in the UK.
  • In spring 2025, a fast route for drivers to re-enter the workforce will be  introduced through a seven-hour course.
    • The existing qualification will remain for drivers operating internationally
  • The Department for Infrastructure in Northern Ireland confirms it will replicate these reforms in the region.

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 13 – Malta

December 24 – Austria*, Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Luxembourg*, Slovakia, Sweden*

December 25 – Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta*, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

December 26 – Austria, Belgium*, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France*, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain*, Sweden

December 27 – Bulgaria, Ireland (Eire)*

December 31 – Latvia, Sweden*

January 1 – Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

Jan 2 – Romania, Slovenia

Jan 6 – Austria, Croatia, Cyprus, Finland, Germany*, Greece, Italy, Poland, romania, Slovakia, Spain, Sweden

Jan 7 – Romania

Jan 24 – Romania

*Not in all regions