Zencargo Market Update: 13th February

China

Ocean

• In Maersk’s recent update, the end of China’s zero COVID-19 restrictions could lead to a surge in demand and trade from the second half of 2023. 
  • This may be due to suppressed demand for overseas travel.
  • However, the current fluctuation in COVID-19 cases could lead to less activity over the next few months.
  • This is because a  surge in COVID cases may impact labour availability at factories, ports, trucking services to name a few. 
• Equipment

Air

Central China to USA and Europe 

• As factories have resumed production post Chinese New Year, more cargo is ready to ship. 
• Rates will increase towards the end of  this week from SHA to Europe as the market is busier and more space is being booked. 
• From NGB to Europe, rates have decreased this week and final rates depend on a case-by-case basis. From NGB to USA, rates are higher compared to last week. 

North China to USA and Europe 

• From TSN to Europe and the USA, the market is slow this week but rates keep on fluctuating. 
  • Space can be booked 3-4 days in advance on both routes.
  • Air China, Lufthansa and Singapore Airlines can provide spot rates for dense cargo on their passenger flights from TSN to Europe.  
  • Japan Airlines, All Nippon and Cathay Pacific can provide spot rates for dense cargo on passenger flights from TSN to USA. 
  • Korean Air and Asiana Airlines can provide freighter flights with earlier ETDs on both routes. 
• From PEK to Europe rates have decreased. To USA, rates are fluctuating. Space on both lanes can be booked 3-4 days in advance. 
  • There is still less service available on both lanes as some carriers are taking on less volume than normal or have cancelled and rescheduled flights. 
  • We advise checking space and rates on a case-by-case basis. 

South China to USA and Europe 

• From  CAN to Europe and the USA rates have decreased this week.
  •  High density and big volume shipments can be booked at a good rate.
• From SZX to Europe rates remain the same as last week but have decreased to the USA.

USA

Ocean

• US storage prices have increased by 1.4% month-over-month and nearly 11% year-over-year. 
  • High inventory levels due to lack of consumer demand are contributing to upward pressure on warehouse rates. 
  • According to CNBC, another contributor to constrained warehouse space is the lack of new facilities coming to the market. 
  • As interest rates are rising, US industrial construction has fallen year-over-year which means that capacity may stay low for the foreseeable future.

• The latest updates on waiting times at US ports are as follows:
  • Overall US East Coast ports are 1-3 days. 
  • Waiting time at Savannah is 2 – 4 days and 3-5 days at Houston.
  • At the Ports of Los Angeles and Long Beach, there is a wait time of 0-1 days. 
  • The wait time at the Port of Oakland is 0-3 days. 

Benelux

Ocean

• At the PSA terminal at the Port of Antwerp, yard utilisation at 913 is stable. Yard 869 is heavily occupied and operational restrictions are expected. 
  • Reefer stacks at 869 are at a normal level and 913 is at increased occupancy. 
  • Empty storage is normal at both terminals. 
• At the Europe Container Terminals (ECT) at Rotterdam, the yard is working at a good operational level. Reefer plug capacity is good and the terminal is able to advance vessel departures. Import dwell times have also increased. 
• At the Rotterdam World Gateway (RWG), yard level is at high utilisation and import dwell times are increasing. Cargo opening times for export cargo at RWG is 8 days before vessel estimated time of arrival.

UK

Ocean

• As mentioned in our market update last week, 1000 workers  are expected to strike at the ports of Calais, Dunkirk and Dover, and the Coquelles Channel Tunnel Terminal between 17th to 20th February. 
  • This is part of an ongoing pay dispute.
  • Military and civil servants will provide cover during the strike, although military personnel will not be sent over to France. 
  • They will also help at other UK ports and airports, filling in for Border Force staff.

Road

• The Road Haulage Association has called on Jeremy Hunt to launch a minimum 15 pence per litre fuel duty rebate for transport operators. 
  • They have asked the Chancellor to announce the measure in his Spring Statement on 15 March. 
  • The aim of this is to reduce the cost of moving goods and people to boost the economy. 
  • They have also appealed to freeze fuel duty on diesel for another two years. 

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.

February 16 – Lithuania

February 20 – Luxembourg*

February 21 – Portugal*, Spain* 

February 28 – Spain*

March 1 – Bosnia Herzegovina*, Spain *, Switzerland* 

March 3 – Belgium 

March 8 – Belarus, Germany*, Moldova, Russia, Ukraine

March 11 – Lithuania

March 13 – Spain*

March 15 – Hungary

March 17 – Ireland (Eire)

March 19 – Austria*, Malta

March 20 – Spain*

March 25 – Cyprus, Greece

March 31 – Malta

*Not in all regions