Zencargo Market Update: 24th April
Apr 24, 2023
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Apr 24, 2023
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Recent data suggests that the global ocean rate market is stabilising. It’s a mantra we have heard before in the proceeding months and yet rates stubbornly defied its calls and continued to spiral downwards. So what makes this different?
One factor to consider is the cost margins of carriers. While the exact cost of shipments is closely guarded and unique to each carrier, Drewry has estimated that across Transpacific and Asia to Europe the revenue per effective RV slot is approaching cost. This essentially means that below this level carriers would be shipping effectively below cost.
A slight rebound in volumes and carrier capacity management programs have also contributed to stabilising rates.
So if we are truly at or nearing the bottom of the rate market then where does that leave us? Drewry estimates a nearly 60% reduction in global freight rates for 2023 compared to 2022. With this figure however, it is critical to bear in mind that it encompasses both spot and long term rates. So annual contracts signed at the peak of rate levels during the pandemic in 2021, that continued through to 2022, are factored into this equation and as such explain such a drastic drop.
Central China to USA and Europe
North China to USA and Europe
South China to USA and Europe
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.
April 24 – Spain*
April 25 – Italy, Portugal
April 27 – Netherlands, Slovenia
April 28 – Gibraltar
April 29 – Russia
April 30 – Russia
May 1 – Albania, Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina (FBiH), Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey and Alderney, Holy See (Vatican City), Hungary, Iceland, Ireland (Eire), Isle of Man, Italy, Jersey, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, North Cyprus, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain, Svalbard and Jan Mayen, Sweden, Switzerland*, Transdniestria (PMR), Turkey, UK (United Kingdom), Åland (Ahvenanmaa)
May 2 – Bosnia and Herzegovina (FBiH), Montenegro, Serbia, Slovenia, Spain*, Transdniestria (PMR)
May 3 – Poland
May 4 – Austria*, Latvia
May 5 – Denmark, Faroe Islands, Greenland (Kalaallit Nunaat), Latvia, Netherlands*
May 6 – Bulgaria, Russia
May 7 – Lithuania, Russia
May 8 – Belarus, Belgium*, Bulgaria, Czech Republic, France, Gibraltar, Guernsey and Alderney, Isle of Man, Jersey, Moldova, Russia, Saint Helena, Slovakia, Transdniestria (PMR), UK (United Kingdom)
May 9 – Belarus, Bosnia and Herzegovina (FBiH)*, Guernsey and Alderney, Jersey, Kosovo, Luxembourg, Moldova, Russia, Transdniestria (PMR)
May 15 – Spain*
May 17 – Spain*
May 18 – Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, Netherlands, Sweden
May 19 – Belgium*, Denmark*
May 24 – Bulgaria
*Not in all regions
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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