Weekly Market Updates

Zencargo Market Update: 24th October

Oct 24, 2022

New Covid-19 lockdowns in China are impacting supply chains

Chinese port cities have been affected by new lockdowns despite lower demand in the traditional peak season. 

Covid restrictions are impacting supply chains in Ningbo, Shanghai and Tianjin, all of which are major port hubs in China. 

Ningbo is most severely affected by the policy at the moment as a Covid outbreak was detected on the 10th October in Beilun, which is the area that has the most terminals for the Port of Ningbo. According to Marine Traffic, this has led to a decrease in productivity. 

Although trucking green channels and a closed-loop management system was installed at the port, delays have been reported with a significant drop in available truck drivers. 

We advise that you speak with your freight forwarding partner to understand if your shipments have been impacted by any of the lockdown restrictions in China.

China

Ocean

  • Ocean carriers are attempting to increase vessel utilisation levels from China with spot cargo as their contracted shippers have underperformed on minimum volumes. 
    • However, reports have shown that if bookings have fallen below the 60% vessel utilisation levels, carriers are likely to cancel voyages and announcing blank sailings.
  • Equipment table (see below)
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
YANTIAN Normal Normal Normal
NINGBO Normal Normal Normal
QINGDAO Normal Normal Normal
XIAMEN Normal Normal Normal
DACHANBAY Normal Normal Normal
SHEKOU Normal Normal Normal
MSK QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
TIANJIN 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
DACHANBAY Normal Normal Normal
SHEKOU Normal Normal Normal
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
NANSHA 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
XIAMEN Normal Normal Normal
SHEKOU Normal Normal Normal
NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
OOCL YANTIAN Shortage Normal Normal
NANSHA Shortage Normal Normal
SHANGHAI Normal Normal Normal
HONGKONG Normal Normal Normal
SHEKOU Shortage Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
XINGANG Normal Normal Normal
YANTIAN Normal Normal Normal
XIAMEN 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
NANSHA Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
HONGKONG Normal Normal Normal
NINGBO Normal Normal Normal
SHEKOU Normal Normal Normal

Air

Central China to USA and Europe 

  • The rate has decreased this week from SHA to Europe and the USA as not many cargo bookings have been made compared to the week before. 
  • Rates have increased from NGB to Europe but have decreased to the USA.

North China to USA and Europe 

  • From TSN to Europe and the USA, rates have increased. However, they are still lower compared to the same period as last year. 
    • Air China, Lufthansa and Singapore Airlines are able to provide spot rates for dense cargo. 
    • Asiana Airlines and Korean Air can provide earlier estimated time of arrival for cargo due to good capacity on their scheduled freighter services. 
  • Rates have increased from PEK to Europe and the USA as space is tight. 
    • Due to decreased availability of services, some carriers are taking on less volume or have even cancelled and rescheduled flights to the USA. 
    • It is advised to confirm rates and space 4 to 5 days in advance to secure cargo space.
  • The rate from TAO to most European and US airports has increased significantly this week and space is tighter this week compared to last week. 
  • From CKG to Europe, rates remain the same as most carriers have not been fully utilised with cargo. Rates have risen slightly from CKG to the USA. 

South China to USA and Europe 

  • Rates are higher compared to last week from CAN to Europe and the USA as the market is now in peak season and space is tighter.
  • From SZX to Europe and the USA, the market is stable and rates can be negotiated with carriers on a case-by-case basis. 
  • From XMN to Europe and the USA rates have remained the same compared to last week. 
USA

Ocean

  • According to Sea-Intelligence, volume growth on the North America West Coast contracted in September 2022. 
    • When compared against 2019 annual levels, volume growth on the North America West Coast remained flat during the first two months of the traditional Q3 peak season. 
    • By the last month of Q3 in September 2022, total handling volumes decreased by 1.7% and laden inbound volumes contracted by 3.3%.
    • Carriers also continued to prioritise empty exports out of the North America West Coast to reposition empty containers back in Asia which has contributed to the decrease in volume growth. 
  • The Transpacific weekly capacity has fallen by 10% since its peak in April 2022. 
    • This figure is likely to decrease even further as more Transpacific loops have been closed. 
    • The latest closures have been announced by Maersk and MSC, but Wan Hai has also shut down two Asia to US West Coast loops.
    • The 2M has announced the closure of the Asia to US West Coast ‘TP3/Sequoia’ service with six 11,000 – 14,000 TEU ships and will also merge their joint ‘TP9/Eagle’ and ‘TP1/Maple’ loops into one single service. 
Benelux

Ocean

  • Throughput volumes at the Port of Rotterdam have risen by 0.3% to 351 million tonnes in the first nine months of 2022. 
    • Despite the loss of container traffic with European sanctions against Russia, there has been strong rises in coal and LNG traffic, replacing Russian energy sources such as natural gas. 
    • The number of TEUs fell by 4.4% to 10.9 million and decreased by 8.6% by weight as more empty containers arrived at the port. 
    • However, LNG throughput increased by 74% to 8.6 million tonnes and coal throughput increased by 25% to 21.7 million tonnes. 
    • Therefore, the increase in coal and LNG volumes has offsetted the decrease in container traffic. This is why throughput at the Port of Rotterdam has been relatively flat this year in the first nine months of 2022. 
UK

Road

  • New Chancellor of the Exchequer, Jeremy Hunt, has said he will “reverse almost all the tax measures announced in the growth plan” last month, impacting the commercial vehicle sector.
    • The proposed changes to IR35 reform have been scrapped, meaning the original plans to implement new rules will come into place.
      • The reform which was introduced in April 2021 required drivers working with the same contractors to be counted as PAYE staff will now be kept in place. 
    • There will not be a cut in Corporation Tax and there are plans for it to increase it to 25% next April.
  • Fuel prices have risen again and is a big issue facing the road haulage industry.
    • At a meeting of the All Party Parliamentary Group (APPG) for Road Haulage and Logistics, the meeting agreed that urgent action was needed from the government to help control costs through a 15p per litre essential user fuel duty rebate.
    • This can help control inflation as fuel costs are one of the key drivers of the retail price index (RPI). 
    • The APPG also acknowledged recruitment challenges and the lack of roadside facilities. The sector is still currently short of approximately 50,000 HGC drivers and 11,000 parking spaces for trucks and coaches.

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.

 

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

October 31st – Germany*, Hungary, Ireland, Slovenia

 

November 1st – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

November 2nd – Belgium*, Lithuania

November 5th – Finland, Sweden

November 9th – Spain 

November 11th – Austria, Belgium, France, Poland

November 15th – Austria, Belgium

November 16th – Germany

November 17th – Czech Republic, Slovakia 

November 18th – Croatia, Latvia 

*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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