Zencargo Market Update: 14th February
Feb 14, 2022
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Welcome to the Zencargo weekly freight market update – the latest news from our freight and procurement teams on the real experience of shippers.
This week: The recovery of schedule reliability will not happen until late 2022.
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In focus: The recovery of schedule reliability will not happen until late 2022
Major ports are starting to see a reduction in congestion and are making progress at clearing their backlogs. However, a new forecast has predicted that schedule reliability may not improve until late 2022.
According to Sea-Intelligence, just over a third of containerships were able to maintain their schedules in 2021. The liner industry’s schedule reliability has dropped to 35.8%: down from nearly 64% in 2020 and 78% before the pandemic in 2019.
However, there may be some temporary relief this month, partly due to the beginning of the Lunar New Year as factory production has reduced in China because of the celebrations.
Ocean
Asia → North America (Transpacific Eastbound)
Rates
- Rates have remained relatively the same due to the Chinese New Year period.
Capacity
- Maersk has announced a new Transpacific East Coast Service, the TP28.
- This new weekly service will deploy vessels in 4500 segments and include port calls in Vung Tau, Yantian, Ningbo and Shanghai with a Panama Canal transit and direct connections to Houston and Norfolk.
- This service aims to start its first sailing from Vung Tao on 23rd March and will coincide with changes to the rotation of the current TP20 service.
- The new TP28 (4500) route will be: Vung Tau – Yantian – Ningbo – Shanghai – Houston – Norfolk.
- The revised TP 20(4500-6500 will be): Jakarta – Yantian – Ningbo – Shanghai – Charleston (North) – Newark.
Ports
- At the Port of New York and New Jersey, the number of container ships that are anchored is 16.
- The weekly average wait time at anchor is 3.22 days.
- The year-to-date average wait time at anchor is 3.57 days.
- The number of vessels waiting to berth in the LA and Long Beach area has dropped to 76.
- However, congestion at ports is estimated to remain until much later in the year as demand is still very high in the USA.
- US supply chains may have a chance to return to normal operations by summer.
- According to Port of Los Angeles Executive Director, Gene Seroka, this is because retailers will replenish their inventories next quarter and get their safety stock at a more comfortable level.
- Seroka claims that this will be the chance for US supply chains to return to steadier operations in early June or July.
City Soonest Availability Date Important Note! Notice Required (Estimated) Atlanta 2/17 Export Congestion / limited hazardous availability – chassis shortage 1.5 weeks Baltimore 3/3 Chassis shortage 3 weeks Birmingham 2/11 Very Limited availability for triaxles/overweight < 1 week Boston No current capacity issues, please send your dispatch Buffalo No current capacity issues, please send your dispatch Charleston 2/17 Local 2/25 Road SPOT PRICING WILL APPLY Extreme chassis shortage / export congestion 4 weeks local / 5 weeks road Charlotte 2/24 Chassis shortage 3 weeks Chicago 2/21 SPOT PRICING MAY APPLY Export Congestion, chassis shortage 2 weeks Cincinnati 2/17 Chassis shortage 1.5 weeks Cleveland No current capacity issues, please send your dispatch Export Congestion Columbus 2/17 1.5 weeks Dallas 2/15 1 week Denver No current capacity issues, please send your dispatch Detroit No current capacity issues, please send your dispatch El Paso No current capacity issues, please send your dispatch Houston 2/24 Local 3/7 Road SPOT PRICING MAY APPLY Export Congestion / Limited availability / Chassis + Triaxle shortage 2.5 weeks local/4 weeks road Huntsville 2/18 1.5 weeks Indianapolis No current capacity issues, please send your dispatch Jacksonville 2/17 Limited Haz 1.5 weeks Kansas City 2/16 Export Congestion / very limited triaxles / chassis shortage 1.5 weeks Laredo No current capacity issues, please send your dispatch Los Angeles NOT ACCEPTING NEW ORDERS UNLESS ALREADY ESTABLISHED REOCCURING MOVES Limited reefer & hazardous availability Not accepting new orders Louisville 2/11 Export Congestion & chassis shortage 1 weeks Memphis 2/11 Export Congestion – EXTREMELY limited hazardous coverage, chassis shortage 1 week Miami 2/17 SPOT PRICING WILL APPLY VERY limited availability out of SFCT, Limited haz availability 1.5 weeks Minneapolis 2/15 1.5 weeks Mobile LOCAL 2/15 ROAD 3/10 SPOT PRICING MAY APPLY Equipment shortage and very limited avail for moves over 300 miles or OW loads 1 week local / 4.5 weeks road Nashville 2/18 Export Congestion, chassis shortage 2 weeks New Orleans 2/22 SPOT PRICING MAY APPLY Limited on triaxles/overweight & chassis shortage 2 weeks NY/NJ 3/4 SPOT PRICING MAY APPLY LIMITED EXPORT AVAILABILITY – Limited haz coverage 4 weeks Norfolk 3/04 SPOT PRICING MAY APPLY Extremely limited avail for: MD, NJ, NY, OH, WV, PA,IL moves, limited NC / chassis shortage 4 weeks Oakland 2/17 Export Congestion, chassis shortage 1 week Omaha 2/14 Very limited triaxles 1 week Philadelphia 2/17 Limited availability for exports, chassis shortage 1.5 weeks Phoenix No current capacity issues, please send your dispatch Pittsburgh No current capacity issues, please send your dispatch Portland 3/1 SPOT PRICING WILL APPLY Chassis shortage, Very limited truck availability 5 weeks Saint Louis 2/16 Export Congestion – limited availability for triaxles, chassis shortage 1.5 weeks Salt Lake City No current capacity issues, please send your dispatch San Antonio No current capacity issues, please send your dispatch Savannah 2/28 SPOT PRICING WILL APPLY Export Congestion / very limited haz and triaxle availability, chassis shortage 3 weeks Seattle/Tacoma IMPORTS 3/4 EXPORTS 4/1 AVAIL IS CASE BY CASE – ALL SPOT PRICING! Limited moves out of Tacoma ports, chassis shortage 4 weeks for imports Tampa 2/18 1.5 weeks Vancouver 3/1 3 weeks Wilmington 2/18
Asia → Europe (Far East Westbound)
Rates
- Rates remain the same as last week. However there have been some local offers done at origin by carriers to stimulate bookings over this period of Chinese New Year.
- Rate differences for specific sailings can be $1,000 to $2,000 less than the normal rate in the market.
Equipment
- See below.
Capacity
- Zim has announced that they are removing some capacity from their monthly Transatlantic services and will be assigning it to the India to Europe trade route.
- This will not start immediately and reassignment is estimated to start in June.
Ports
- The UK government has announced plans to remove COVID-19 restrictions on isolation requirements. This will help improve port operations in the UK.
- There will be fewer people who will need to isolate, therefore available labour resources will improve to operate the ports.
- This should improve vessel delays in the UK due to an increase in productivity at ports.
Carriers POL 20GP 40GP 40HQ HPL NINGBO Normal Normal Normal SHANGHAI Normal Normal Normal YANTIAN Normal Normal Normal SHEKOU Normal Normal Normal MSK QINGDAO 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 SHEKOU Normal Normal Normal HMM SHANGHAI Normal Normal Normal NINGBO 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 SHEKOU Shortage Shortage Shortage NINGBO Shortage Shortage Shortage SHANGHAI Normal Normal Normal QINGDAO Shortage Normal Normal OOCL YANTIAN Normal Normal Normal SHANGHAI Normal Normal Normal NINGBO Normal Normal Normal CMA QINGDAO Normal Normal Normal SHANGHAI Normal Normal Normal NINGBO Normal Normal Normal YANTIAN 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 SHEKOU Normal Normal Normal
Air
Asia
Central China to USA and Europe
- The market is quite slow this week for Shanghai as the majority of factories will remain closed until 16th February because of the Chinese New Year Holiday.
- The rate has decreased from SHA Airport to Europe and the US.
- Most cargo flights will not be cancelled, and will fly as usual.
- The epidemic controls at PVG airport are still in place. However, there are no rules that are specific to Omicron due to the day-to-day control on COVID-19.
- Over 40% of cargo flights are cancelled
- Terminals are at 50% in terms of labour resources.
- Rates from Ningbo airport to the USA and Europe have decreased this week.
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- Rates and space will need to be checked with carriers on a case-by-case basis.
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North China to USA and Europe
- Rates have reduced from TSN Airport to the US and Europe.
- Truck service will also be in full operation from 15th February.
- Airlines are offering spot rates for dense cargo.
- Space will be tight when factories reopen.
- Please check on a case-by-case basis.
- From PEK airport, air rates have decreased slightly to the US and Europe.
- Space remains tight as heavy snow has caused many flights to cancel. It is best to confirm rates and space 3-4 days in advance,
- Heavy and dense cargo will have special rates and should be checked on a case-by-case basis.
- Lead time has increased for trucking services due to heavy snow and bad weather conditions.
South China to USA and Europe
- From CAN Airport, rates have reduced and space has increased after the Chinese New Year holiday to the US.
- However, space is a little tight and airlines are starting to increase their rates to Europe.
- All shipments must be checked on a case-by-case basis.
- From SZX Airport, the air rate has decreased to both the USA and to Europe.
- At XMN, some factories have not resumed work and freight has reduced. However, please check with your carrier on a case-by-case basis.
Americas
- Emirates SkyCargo has started freighter flights to Chicago Rockford International Airport (RFD).
- The carrier said that from 1st February, it has been operating scheduled and ad-hoc flights to the airport on a combination of Boeing 777F and Boeing 777-300ER PAX freighters.
- The new service will complement the cargo connectivity it offers in the US Midwest region.
- Minneapolis-St. Paul International Airport (MSP) said its cargo activity has remained strong through the pandemic.
- Total cargo at the US airport in 2021 was 234,747 metric tons, surpassing 2019’s pre-pandemic cargo shipments by 2.5% and 2020 levels by 15.2%.
- 2021 saw the airport surpass 25.2 million total passengers, an increase of 69.6% compared to 2020. However, this was 36.3% lower compared to 2019 levels.
- The airport supported 303,850 aircraft operations (takeoffs and landings of all types of aircraft) in 2021, an increase of 24% compared to 2020.
Europe/UK
- Riga Airport has announced a new strategy which will see over 48,000 tonnes of air cargo handled per year by 2027.
- The ‘Runway 2027’ strategy plans to create a new airport passenger terminal with an area of 30,000 square metres, serving up to 12 million passengers annually.
- This will be connected with Rail Baltica railway station to form a multimodal transport hub.
- Green goals to reduce the airport’s carbon dioxide emissions have also been incorporated.
Road and Rail
Freedom Convoys in Europe – Expect Delays
In Belgium and Paris, as well as in various other European capitals, a call has been launched to hold a “Freedom Convoy” of truck drivers and motorists on Monday 14th February 2022. The protesters have taken their inspiration from Ottawa truckers in Canada who have managed to shut down Ottawa after converging there to protest COVID-19 vaccine mandates. The truckers in Ottawa have gone on to shut down several bridges on the US-Canada border. Traffic jams and protests in Paris have already been reported. Please expect traffic delays.
UK Road Freight Prices rise 15% year on year
UK road freight prices have increased by 15% in January 2022 compared to January 2021. Road freight prices are at its highest compared to the previous three Januarys, according to the latest TEG Road Transport Price Index.
The average price-per-mile for haulage and courier vehicles increased from 101.5 points to 116.8 points between January 2021 and January 2022. In previous years, the price-per-mile dropped following the traditional surge for Christmas, decreasing 13.5 points from December to January.
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 15th – RS
February 16th – LT, RS
February 23rd – RU
February 24th – EE
February 28th – AD, ES
March 1st – BA*
March 3rd – BG
March 7th – GR
March 8th – BA*, BY, DE, MD, RU, UA
March 11th – LT
March 14th – AD, HU
March 15th – HU
March 17th – GB (NI only),
March 19th – CH*, ES*
March 25th – GR
*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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