Zencargo Market Update: 12th December

China

Ocean

• Figures released by China customs have shown that exports continue to fall.
  • In November, Chinese exports fell by 9% in dollar terms, attributed to high inflation and stagnating demand in Europe and the US. 
  • This represents the biggest contraction in export figures since February 2020. 
  • Shipments to the US fell by more than 25% in November, compared with last year, while exports to the EU fell by nearly 11% year on year. 
• As mentioned earlier in the update, the CCP has issued a 10 point directive to ease Covid restriction in China.
  • Testing will no longer be required for “cross-regional migrants” which is welcome news for shippers who feared the testing could compound delays caused during Chinese New Year as workers take leave and travel. 
  • The easing of restrictions follows widespread protests against Covid restrictions earlier in the month. 

Air

Central China to USA and Europe 

• From SHA to Europe,  rates have decreased compared with last week.
• From SHA to the USA, rates have increased compared to last week, especially to the East Coast. This increase is due to an uptick in E-commerce goods and cancelled flights restricting space. 
• From NGB to Europe, rates have remained the same as last week, with the final rate being provided on a case by case basis. 
• From NGB to the USA, rates have increased this week, with the final rate being provided on a case by case basis. 

North China to USA and Europe 

• From TSN to Europe, rates continue to fluctuate and have seen a slight increase compared to last week; however, rates are much lower than at the same time in 2021. This increase in rate is due to available space tightening. 
  • Air China, Lufthansa and Singapore Airlines can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
  • We recommend booking 3-4 days in advance.
• Similar to Europe, rates from TSN to USA continue to fluctuate and  have seen a slight increase compared to last week. Rates are much lower compared to the same time in 2021. This increase in rate is due to available space tightening. 
  • Japan Airlines, Cathay Pacific and All Nippon Airways can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
  • We recommend booking space 5-6 days in advance. 
• From PEK to Europe and the USA, rates have seen an increase compared to last week however space still remains tight. 
  • For urgent shipments to Europe we advise providing the cargo ready date, reconfirm rates and book space 3 to 4 days in advance. 
  • For flights from PEK to the USA the available carriers include Japan Airlines, All Nippon Airways and Cathay Pacific. 
    • Due to less available services on PEK to the USA,  some airlines are loading less volume or have cancelled or rescheduled their flights. 
• From TAO to Europe, rates have risen this week compared  to last week.
  • ETD for new bookings is the 15th December.
• From TAO to the USA, rates have risen this week compared  to last week.
  • ETD for new bookings is the 14th December.
• From CKG to Europe rates have remained stable and similar to last week , while rates to the USA have seen a slight increase.
  • Qantas is able to provide direct flights to Chicago and special rates on direct flights to Los Angeles. 

South China to USA and Europe 

• From CAN to the USA and Europe rates have risen since last week and can be negotiated with carriers on a case-by-case basis. 
  • However, space is still tight as we enter the last few weeks of the year. 
• From SZX to Europe and the USA, the market is stable and rates can be negotiated with carriers on a case-by-case basis. 
• From XMN to Europe and the USA, rates have increased compared to last week. Rates can be negotiated with carriers on a case-by-case basis.

USA

Ocean

• The Transatlantic is still showing elevated demand and spot rates however has had minor rate decreases this week.
  • The combination of a strong dollar and US retailers opting to source more product from Europe rather than Asia has kept the market buoyant. 
  • Carriers are looking to bolster capacity on this line to ensure they can cater to shipment needs.
• In total, North American ports have less than 100 ships waiting offshore, representing a significant drop in congestion since July when the number of vessels waiting was over 150.  
  • The Port of Savannah continues to have the longest queue with 29 container vessels waiting.
    • The issues caused by this congestion is reflected on the ships on the water en route to the Port of Savannah dropping 22% from highs in July. 
  • As US imports continue to fall it is predicted that the levels of congestion at ports will also decrease.

Benelux

Ocean

• The ‘green corridor’ agreement between the Port of Singapore and the Port of Rotterdam will shift focus to a digital approach due to a lack of available zero carbon fuel.
  • The agreement aimed at reducing emissions in the shipping industry was announced last August. 
  • Currently the agreement is focusing on optimising the trade lane to reduce emissions through measures such as weather routing and ports providing advance notice of cargo departure.

UK

Ocean

• Potential strike action by UK Border Force employees threaten to  “affect all UK air, rail and maritime ports and the juxtaposed ports in Calais, Coquelles and Dunkirk,”
  • Potential strike dates over the  Christmas period have already been announced for various UK airports which will impact passenger flights as  well as a strike at the Port of Newhaven. 
  • The UK Government has stated that they will minimise delays by training volunteers and military personnel to fill roles. 
• The MET office has issued a yellow weather warning for snow and ice in  Felixstowe for the 12th December
  • As this is still developing it is unclear if this could cause delays at the Port of Felixstowe.

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 13th – Malta

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

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

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

December 27th – Bulgaria, Gibraltar, Guernsey and Alderney, Ireland*, Isle of Man, Jersey, Saint Helena, UK 

December 28th – Bulgaria, Ireland*

December 31st – Andorra*, Faroe Islands, Greenland, Latvia, Liechtenstein*, Russia, San Marino*, Svalbard and Jan Mayen*, Sweden*, Switzerland*, Transdeniestria

*Not in all regions