Zencargo Market Update: 20th November 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates are increasing and will not be decreasing anytime soon. 
  • The market continues to be busy with increased orders of e-commerce cargo, therefore space is tight with limited space before next week. 
• From NGB to Europe and the US, the market remains busy due to the peak season. 
  • We suggest booking space 4-5 days prior to the cargo ready date.
  • The final rate is offered on a case-by-case basis.

North China to USA and Europe:

• From TSN to Europe and the US, rates have increased for Korean Airlines to both destinations. 
  • Space is fully booked until 28th November to both destinations on Korean Airlines. 
  • Space on Asiana Airlines is limited but they may take bookings on a case-by-case basis. 
• From PEK to Europe and the US, rates have increased on most major airlines and space is very limited. Hot weather is currently causing loading issues which are impacting space.
  • Major services from PEK to Europe include: Singapore Airlines, Cathay Pacific, Lufthansa, Air China, KLM, Air France, Japan Airlines.
    • It is advised to book space 7-8 days ahead of the cargo ready date. 
  • Major services from PEK to the US include: Cathay Pacific, Japan Airlines, All Nippon Airways and Eva Air. 
    • It is advised to book space 9-10 days ahead of the cargo ready date. 
• From TAO to Europe and the US, space is tighter due to an increase of e-commerce cargo.
  • Rates have increased this week to both destinations. 
  • Airlines are still releasing spot rates for dense cargo but this will need to be checked on a case-by-case basis.

South China to USA and Europe:

• As it is peak season, all airlines have increased their rates and space from CAN to Europe and the US is very tight. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From SZX to Europe and the US, the market has become busier and space is limited. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From XMN to Europe, space is very tight and rates have increased. The market to the US is extremely busy and airlines are continuing to cancel flights. The market remains busy due to e-commerce cargo. 
  • Final rates depend on a case-by-case basis. 

USA

Ocean

• Here’s the latest update on port congestion in North America:
  • Los Angeles/Long Beach:
    • Vessel bunching remains an issue, with 7 ships waiting to berth and a 4-day delay.
    • Rail heads are operating with a 6-day dwell time.
    • This congestion has caused a knock-on effect for Oakland, with 7 ships also waiting to berth.
  • Portland and Vancouver:
    • Yard capacity is still an issue for both ports, with 60% of capacity full.
    • 3 vessels are waiting at Vancouver and 4 at Portland.
  • New York/New Jersey:
    • Vessel bunching has improved, with no ships waiting to berth and a 3-day dwell time on the rail heads.
  • Norfolk:
    • Vessel bunching has worsened again, with 24 ships currently waiting to berth.
    • We recommend avoiding Norfolk and using surrounding ports instead.
  • Savannah:
    • Berthing construction is causing some congestion, with 9 ships waiting to berth and a 3-day dwell time on the rail heads.

• US West Coast ports of Los Angeles and Long Beach reported strong import container throughput in October.
  • Los Angeles recorded 372,455 TEU of imports, an increase of 10.7% from 2022 levels, while Long Beach saw imports increase by 23.6% to 363,300 TEU compared to last year. 
  • An analysis of the ten largest container ports in the US showed a 2.4% year-on-year increase in import volumes to 1,944,637 TEU, after a period of 15 consecutive months of decreases. 
  • Collectively, import volumes in October were 8.8% higher than in the same month in 2019, before the impact of the pandemic.
  • For the third consecutive month, US East and Gulf Coast ports lagged behind their West Coast counterparts, experiencing a 5.1% year-over-year drop in import containers, reaching 1,037,171 TEU, while West Coast ports registered a 12.7% increase in import volumes, totaling 907,466 TEU.

Benelux

Ocean

• After a brief period of gains, spot market indices for east-west tradelanes are once again declining.
  • • Ocean carrier GRIs for November have fallen short of expectations, indicating that rates have struggled to maintain and carriers are attempting to push up spot rates with new GRIs for December.
    • Asia-North Europe spot rates have dropped 4% this week, while Asia-Mediterranean rates have fallen by 1%.

• Here are some recent port updates from Hapag-Lloyd:
  • Antwerp, Belgium:
    • At PSA 913, yard utilisation has increased to 65-70%, while reefers remain are currently between 65-60%.
      • There are ongoing bollard works, with completion being delayed until December. 
    • At PSA 869, yard utilisation has decreased slightly to 60-65% and reefers are low at 35-40%. 
    • At AGW, yard utilisation remains at 50-55% and reefer plugs have decreased compared to last week to 35-40%. 
  • Rotterdam, Netherlands:
    • At the Europe Container Terminals, yard utilisation remains stable  at 55-60%. There are sufficient reefer plugs for the current demand. 
    • At the Rotterdam World Gateway, yard utilisation remains at 55-60% and reefer plug utilisation is at a sufficient capacity of 50-55%.
      • The terminal is still operating efficiently, even with high berth utilisation. 

UK

Ocean

• HGV demand in the UK surged by 15% in the third quarter, with over 11,500 new trucks hitting the roads.
  • This marks the sixth consecutive quarter of growth and represents the highest number of new HGV deliveries since 2019.
  • Electric and hydrogen-powered lorries gained traction, constituting 0.8% of the market, a record high for the year.
  • Zero-emission trucks still represent a small portion of the overall HGV market as they account for one in 119 new trucks, far behind cars and vans.
  • Rigid trucks drove the overall growth, increasing by 13.9% to 6,293 units.
  • Articulated trucks also performed strongly, rising 16.1% to 5,238 units.
  • Tractors, used for large delivery trucks grew by 16.4% and captured 44.5% of the market.
  • Box vans witnessed a surge in demand, up 11.8%, while curtain-sided and refuse trucks saw gains of 62.5% and 16.6%, respectively.
  • Tipper registrations, however, declined by 9.7% compared to the previous year’s strong quarter.

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.

Nov 20 – Latvia

Nov 22 – Germany*

Nov 30 – Romania

December 1 – Portugal, Romania

December 4 – Spain*

December 6 – Finland, Spain

December 8 – Austria, Italy, Malta, Portugal, Spain

December 13 – Malta

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

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

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

December 27 – Bulgaria, Ireland (Eire)*

December 31 – Latvia, Sweden*

*Not in all regions