Zencargo Market Update: 17th June 2024
Jun 17, 2024
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Jun 17, 2024
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With overall idling well below 1% of the world’s 29.90 MTEU of cellular vessel capacity, the global liner fleet can be considered ‘fully employed’. This near-total utilisation leaves little room for flexibility, and the resulting scarcity has driven a sharp increase in charter rates, particularly for shorter-term fixtures. The message is clear: every available vessel is needed, and needed urgently.
Higher-than-expected cargo volumes are placing additional strain on the supply chain, further compounded by the reemergence of congestion at several key ports. The ongoing diversions around the Cape of Good Hope add another layer of complexity, effectively ‘inflating’ tonnage demand.
A Sea Intelligence model examining the global supply-demand balance predicts a peak in 2024 that could rival the disruptions seen during the pandemic. The current rising rates are a direct result of this sudden tightness. Port congestion and vessel delays exacerbate the situation, absorbing capacity that would otherwise meet the burgeoning demand.
Currently, 6.3% of global vessel capacity is tied up in port congestion, a significant increase from the 2% typical in a normal market. During the height of the pandemic, this figure soared to 11.1% in 2021. If congestion in Asian ports remains unresolved, the market pressure in 2024 could escalate even further, with carriers existing conditions to continue through peak season and into October.
Central China to Europe (SHA/NGB):
North China to Europe (TSN/DLC/PEK/TAO):
South China to Europe (CAN/SZX/XMN):
Central China to USA (SHA/NGB)
North China to USA (TSN/DLC/PEK/TAO)
South China to USA (CAN/SZX/XMN)
Ocean
Antwerp:
AGW: Vessel turnaround affected by major oil spill cleanup in progress, causing several delays for arrival and departure. Yard utilisation at 55% – 60%. Reefers at 90% – 95%. Empties at 50% – 55%. Terminal will work through the vessel backlog caused by the oil spill.
Rotterdam:
RWG: Utilisation at 70% – 75%. Terminal had to temporarily stop operations due to high winds at the beginning of the week.
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.
June 18 – North Cyprus, Türkiye
June 19 – North Cyprus, Türkiye
June 21 – Finland*, Greenland*, Sweden*, Åland
June 22 – Croatia, Finland, Sweden, Åland
June 23 – Estonia, Greece, Latvia, Luxembourg, Romania, Switzerland*, Ukraine
June 24 – Andorra*, Cyprus, Estonia, Greece, Latvia, Lithuania, Romania, Spain*
June 25 – Slovenia
June 28 – Bosnia and Herzegovina
June 29 – Vatican City, Italy*, Malta, Switzerland*
*Not in all regions
The information that is available in the Zencargo 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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