Zencargo Market Update: 12th August 2024

Ocean

• Rates for the Asia-Europe trade lane have shown a decline in the second half of August.
• Space availability has improved slightly, though challenges remain.. While blank sailings are still in place, they are less prevalent than before, and schedule reliability has improved. 
• Heavy congestion continues to affect transshipment ports such as Singapore and Colombo, exacerbating delays and operational challenges across the trade lane. Equipment issues, while improving, still pose a problem in certain areas​.

Air

Central China (SHA/NGB) to Europe:

• SHA (Shanghai): The market is stable this week with an increase in bookings to Europe as the summer vacation period ends. Rates are slightly increasing, and it is recommended to book space at least one week in advance .
• NGB (Ningbo): Rates have increased due to limited space. Final rates depend on the actual flight, and it is recommended to check case by case for the best spot rate .

North China (DLC/TSN/TAO/CKG/BJS) to Europe:

• TSN (Tianjin): Rates are slightly lower compared to the previous week.
• DLC/PEK (Dalian/Beijing): The market remains fluctuating, with major carriers showing stable rates. Dense cargo may qualify for spot rates, but advance booking is necessary, especially due to hot weather impacting loading capacity.
• TAO (Qingdao): The market is stable with slight reductions in rates to most European airports. Spot rates are available for dense cargo .

South China (CAN/SZX/XMN) to Europe:

• CAN (Guangzhou): The low season is allowing for better rates for high-density and large-volume cargo. Airfreight rates range between $4.50/kg and $5.50/kg depending on the destination .
• SZX (Shenzhen): The market is stable, with rates slightly decreased this week. 
• XMN (Xiamen): The market remains stable. Final rates are confirmed on a case-by-case basis based on actual bookings .

Ocean

• According to Sea Intelligence, June saw a marked increase in global container demand, with a 6.3% year-on-year growth in volumes. 
• This growth was particularly strong in the Transpacific trade, where volumes surged by 18%, only slightly below the record set in May 2024. The demand spike was driven by strong head-haul growth in deep-sea trades, which are critical for soaking up vessel capacity
• Rates are expected to increase for the second half of August, with an anticipated GRI (General Rate Increase) for both East and West Coast routes.
• Congestion has improved slightly at most major ports.

Air

Central China (SHA/NGB) to USA:

• SHA (Shanghai): The market is stable this week. The booking activity to the US is weak, leading to stable rates. Should any cargo be scheduled for shipment, it is suggested to book space at least one week in advance .

North China (DLC/TSN/TAO/CKG/BJS) to USA:

• TSN (Tianjin):The market is tight compared to last week. Please check rates on a case-by-case basis. 
• DLC/PEK (Dalian/Beijing): Rates with most major airlines remain stable with fluctuations. Dense cargo may apply for spot rates, and volume cargo needs 7-10 days ahead to book and accept flight splits. Space is fully booked through the weekend with hot weather impacting loading capacity.
• TAO (Qingdao): Market rates to the US West Coast have increased slightly, with space remaining tight to AODs (Airline Onward Destinations) like BOS, JFK, and DFW. Airlines are still releasing spot rates for dense cargo on a case-by-case basis .

South China (CAN/SZX/XMN) to USA:

• CAN (Guangzhou): It is currently the low season, which allows for better rates for high-density and large-volume cargo. 
• SZX (Shenzhen): Rates have increased slightly this week. All shipments need to be checked with the carrier on a case-by-case basis.
• XMN (Xiamen): The market remains stable though final rates depend on the actual flight and are confirmed on a case-by-case basis.

Ocean

• The market from the Indian Subcontinent to Europe remains tight, with rates from Bangladesh running higher. This is partly due to clearance of goods being significantly impacted  due to security concerns.
• Heavy congestion continues at transshipment ports like Colombo, with feeder vessel delays now exceeding four weeks. This congestion is causing significant backlogs, particularly for shipments from South India​.
• Vessel delays and blank sailings are compounding capacity and equipment issues, with priority for capacity and containers still going to the Far East.
• With ongoing congestion and capacity issues, it is recommended to book as early as possible. Alternative direct sailing ports like Chennai may provide some relief, though they are also experiencing delays​.

Ocean

• Rates from Northern Europe to the US East Coast remain stable, but the situation in the Mediterranean is more challenging, with congestion continuing at major ports in Italy and Spain, leading to rate increases​.
• The potential for industrial action by the International Longshoremen’s Association (ILA) looms over the East Coast ports. If industrial action begins on October 1st, it could cause significant congestion and delays, with the potential to impact operations well into mid-November​.

USA

Ocean

• Los Angeles/Long Beach: Currently, there are 0 vessels waiting to berth, with a 7-day dwell on the rail. Yard capacity is at 67%.
• Oakland: 5 vessels are waiting to berth with a 5-day rail dwell.
• Seattle/Tacoma: 7 vessels are waiting to berth with a 9-day rail dwell.
• Vancouver: 1 vessel is waiting to berth with a 6-day rail dwell. Yard capacity is at 78%.
• Prince Rupert: No vessels are waiting to berth, but there is an 8-day rail dwell. Yard capacity is at 65%.
• New York/New Jersey: 3 vessels are waiting to berth with a 5-day dwell on the rail. Yard capacity has increased to 85%.
• Norfolk: 5 vessels are waiting to berth with a 3-day rail dwell.
• Savannah: There has been a significant increase, with 12 vessels waiting to berth and a 3-day rail dwell.
• The potential ILA strike on October 1st threatens to disrupt operations at East Coast ports, with the possibility of severe congestion lasting into mid-November​

Benelux

Antwerp, Belgium 

• PSA 913: Yard at 70-75% utilisation. Reefers at 55-65%.
• PSA 869: Yard at 65-70% utilisation. Reefers at 60-65%.
• AGW:Yard at 50-55%. Reefers at 50-55% utilisation.
• There is a public holiday in Belgium on 15th August but terminals will continue with waterside operations

Rotterdam, Netherlands

• ECT: Yard at 75-80%.
• RWG: Yard utilisation at 70-75%. 

United Kingdom

Road/Rail

• GB Railfreight (GBRf) has launched a second daily freight service between the Port of Felixstowe and Widnes.
• The expansion is in response to increasing demand for rail freight services.
• GBRf will now operate 11 trains per week on this route and will help remove an estimated 500 lorries from the roads.
• GBRf has already moved over 100,000 containers through Felixstowe this year and aims to double the number of containers moved by the end of the year.

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.

Aug 15 – Austria, Belgium, Croatia, Cyprus, France, Germany*, Greece, Italy, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovenia, Spain

Aug 16 – Romania*

Aug 19 – Hungary

Aug 20 – Estonia, Hungary

Aug 29 – Slovakia

September 2 – Luxembourg

September 6 – Bulgaria

September 8 – Malta, Spain

September 9 – Spain

September 11 – Spain

September 15 – Slovakia

September 17 – Spain

September 20 – Germany

September 21 – Malta

September 22 – Bulgaria

September 23 – Bulgaria

September 24 – Austria

September 27 – Belgium

September 28 – Czech Republic

October 1 – Cyprus

October 3 – Germany

October 5 – Portugal

October 9 – Spain*

October 10 – Austria*

October 12 – Spain 

October 23 – Hungary

October 26 – Austria 

October 28 – Cyprus, Czech Republic, Greece, Ireland (Eire)

*Not in all regions