Weekly Market Updates

Zencargo Market Update: 25th April

Apr 25, 2022

In focus: Shanghai enters its fourth week in lockdown as carriers announce blank sailings

Forward export bookings have decreased by 40% from Shanghai due to the lockdowns, which has prompted carriers to blank sailings and consolidate loads. 

As factory production has been suspended to minimise infection rates, numerous containerships are currently waiting at anchor off Shanghai port for cargo to load on their ships. 

Carriers such as the 2M Alliance have announced blank sailings to mitigate the impact of a reduction in cargo. 

Businesses should work with their freight forwarding partners to see if these blank sailings will affect their shipments.

China

Ocean

  • Shanghai’s Covid lockdowns remain in place, causing disruption at Shanghai’s ports.
    • Vessels are spending 44% less time at Shanghai’s ports compared to last year at an average of 2.02 days. This is a decrease of 2% compared to January and February.
    • The 14-day average import container dwell times in Shanghai has increased by 144% to 8.2 days while export dwell times increased by 20% to six days. 
  • Port congestion has nearly doubled across China since the latest lockdowns began.
    • On 12th-13th April, there were 506 vessels waiting outside Chinese ports. This increased from 470 vessels in March and 260 vessels in February. 
    • The 506 vessels waiting outside Chinese ports this month represent 27.7% of all vessels waiting outside ports globally. 
    • The number of container vessels waiting outside of Chinese ports is currently 195% higher than it was in February. 
  • The 2M Alliance is preparing to blank three Asia to North Europe sailings in May.
    • For the first week of May, MSC and Maersk have cancelled their Griffin/AE55 loop and will remove two sailings of their Shogun/AE1 service in the coming weeks. 
  • See below for equipment availability:
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Shortage
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 Shortage Normal
SHEKOU Normal Normal Normal
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Shortage
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 Normal Normal Normal
NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
OOCL YANTIAN Shortage Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Normal Shortage
SHANGHAI Normal Normal Shortage
NINGBO Normal Normal Shortage
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
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

Central China to USA and Europe

  • Shanghai is still in lockdown. Businesses should coordinate with their freight forwarding partners about whether this affects their shipments. 
    • Alternative warehouses outside of the area are available in Qingdao, Shenzhen, Xiamen, Wuhan, Nanjing, Hangzhou and Ningbo. 
    • Capacity has reduced this week from SHA Airport to Europe and the USA.
    • Rates have also increased from SHA Airport to both destinations.
  • Zhengzhou Airport has been hit by the diversion of air freight from Shanghai (PVG) Airport. 
    • Zhengzhou has also begun a two-week lockdown, adding further to the challenges. 
    • The diversion of air freight cargo has caused a shortage of pallets for exports at other airports, not just Zhengzhou. 
  • From NGB Airport to Europe and the USA, rates are stable this week 
    • Final rates depend on a case-by-case basis. 

North China to USA and Europe

  • The space in the air market from TSN Airport is tight. China’s public holiday ‘Labour Day’ is happening on the 1st May, therefore rates and space are critical this week. 
  • From PEK Airport, space is also tight due to China’s Labour Day. 
  • Some areas in Beijing have been placed in lockdown due to a rise in Covid infections.
    • This has limited trucking services due to restrictions that have been put in place to prevent the spread. 
  • Please work with your freight forwarding partners to reconfirm rates and space in advance. 

South China to USA and Europe

  • CAN Airport terminals are busy and the wait times to get into the terminal have reached over 12 hours.
  • From SZX Airport, the market and rates remain stable.
  • From XMN Airport, freight is almost the same as last week but space has become tight due to China’s Labour Day holiday. 
  • All shipments need to be checked on a case-by-case basis.
USA

Ocean

  • The Ocean Alliance is growing their Transpacific services to the US East Coast by introducing their eighth Asia-US East Coast loop.
    • Commencing on 9th May, the 10 week loop will include: Yantian, Ningbo, Shanghai, Busan, Norfolk, Savannah, Charleston, Miami, and back to Yantian. 
  • The resumption of production from Chinese factories may cause further disruption for US ports.
    • The Ports of LA and Long Beach, which handle more imports from China than any other US ports, will see a spike of incoming shipments.
    • The US West Coast ports are already experiencing congestion and labour shortages. Therefore, the flood of imports from China could worsen the situation at the US ports.

Air

  • Dallas Fort Worth International Airport (DFW) handled over 1m tons of cargo last year.
    • This record volume was partly due to a shift in ocean to air freight due to port congestion. 
    • The previous record was 972,000 tonnes in 2019. This volume decreased in 2020 to 880,000 tonnes in 2020 caused by the pandemic.
Benelux

Ocean

  • In the first quarter of 2022, freight throughput decreased by 1.5% through the Port of Rotterdam compared to the previous year. 
    • In 2022, throughput was 113.6 million tonnes compared to the 115.2 tonnes in the first quarter of 2021. 
    • Last year, 13% of freight volumes were Russia-oriented. Therefore, the Ukraine/Russian War has contributed to this decrease in throughput as the EU has placed economic sanctions against Russian. 
United Kingdom

Road/Rail

  • Brent oil price continues to be volatile
    • The global price of Brent crude rose last week as outages in Libya add to the overall disrupted picture, before falling again at the beginning of this week.
    • Brent crude rose to $113 per barrel and hit figures not seen since the end of March due to the current political situation in Libya and Ukraine, then fell to under $100 per barrel in trading on Monday.
    • The fuel cost situation is already being impacted by Russian production declining by 7.5% in April from March. Further plans are being drawn up by the EU to ban crude from Russia.
    • Alongside the 5p per litre reduction in fuel duty – which reduced the cost of an average HGV per year by around £2000 – costs have decreased, but pressure is still high and significantly above the level of last year.

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 25th – BG, BA, GR, IT, MD, ME, PT, RO, RS, UA

April 27th – NL, SI

May 1st – AT, AD, BE, BG, BA, BY, CH, CZ, DE, ES, EE, FR, FI, FL, GR, HU, HR, IT, LU, LT, LV, MD, ME, NO, PT, PL, RO, RU, SE, SK, SI, RS, TR, UA

May 2nd – BG, BA, GB, GR, IE, MD, ME, RU, SI, RS, TR, UA

May 3rd – BY, PL, RU, RS, TR

May 4th – LV, TR

May 5th – EE, NL

May 6th – BG, DE

May 8th – CZ, FR, SK

May 9th – BA, BY, LU, MD, RU, UA

May 10th – BA*

May 13th – DK

May 17th – NO

May 19th – TR

May 21st – ME

May 22nd – ME

May 24th – BG

May 26th – AT, AD, BE, CH, DK, FR, FI, FL, NO, NL, SE

May 30th – GB, HR

 

*Not in all regions

The route ahead

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