Weekly Market Updates

Zencargo Market Update: 25th July

Jul 25, 2022

In focus: Spot rates continue to decline from Asia to Europe and the USA

Spot rates from Asia to Europe and the US continue to decline on both trade lanes as inflation continues to rise.

A decrease in consumer demand combined with earlier importer shipping peak season orders have contributed to falling rates. 

Please speak to your freight forwarding partner to secure the best rates and space for your shipments. Zencargo are pleased to offer rates strategy consultations for businesses looking to diversify their rates profile. Click here to book. 

China

Ocean

  • Ports in China are facing severe yard and berth congestion.
    • Most of the terminals at the Port of Ningbo are experiencing congestion. Waiting times are approximately 2 to 3 days.
    • Terminals at the Port of Yantian are facing similar waiting times.
    • Qingdao has been affected by intermittent fog and bad weather and waiting times range from 2 to 5 days. 
    • Shanghai is performing better in comparison to other Chinese ports as waiting times are up to 1.5 days. 
  • See equipment table 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 Shortage
DACHANBAY Normal Normal Shortage
SHEKOU Normal Normal Shortage
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 Shortage Normal
XIAMEN Normal Shortage Normal
SHEKOU Normal Normal Normal
NINGBO Normal Shortage Normal
SHANGHAI Normal Shortage Normal
QINGDAO Normal Shortage Normal
OOCL YANTIAN Normal Normal Shortage
SHANGHAI 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 Shortage Shortage
XIAMEN Normal Normal Normal
SHEKOU Normal Shortage 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 

  • From SHA to Europe, the market is quieter this week and rates have dropped. However, from SHA to the USA rates have increased slightly. 
  • From NGB to Europe, rates have decreased slightly. However, rates are stable to the USA compared to last week. 

 

North China to USA and Europe 

  • At TSN, there has been a rise in COVID-19 cases in the Tianjin area. Therefore, terminal warehouses are operating at a lower efficiency with longer handling times. Rates to both the USA and Europe should be checked on a case-by-case basis. 
  • From PEK to Europe, space is tight and Air China is still waiting on reopening its direct flight service to London Heathrow. From PEK to the USA, rates have increased slightly.
  • Due to hot weather conditions and rain, some carriers have cancelled, rescheduled or taken on less volume. Therefore, flight schedules are not reliable at the moment. 

South China to USA and Europe 

  • From CAN to Europe and the USA, rates have decreased to both destinations. 
  • From SZX to Europe rates have decreased but remain stable to the USA. 
  • From XMN to Europe and the USA, rates are stable this week. 

 

India

Ocean

  • Indian shippers face more blank sailings on Europe services. 
    • Hapag-Lloyd has announced intermittent void calls on its IOS service between West India and North Europe from August to November. 
    • This will result in 10 blank sailings out of India over the next four months; five each for the Port of Nhava Sheva and the Port of Mundra.
    • This decision by Hapag-Lloyd is to improve schedule reliability.
USA

Ocean

  • US import container volumes grew by 5.9% in June year-on-year. 
    • Throughput at the top ten US container ports was 2,164,789 TEU, increasing by 3% compared to May and 5.1% compared to April.
    • The US East and Gulf ports saw the biggest increase of up to 9.7% to 1,086,380 TEU compared to the 2.3% rise at US West Coast Ports at 1,078,409 TEU.
    • A shift in imports from the US West Coast to the US East Coast has resulted in many ships waiting for berths at New York and Houston. Two thirds of ships are estimated to be anchored on the East Coast. 

Road and Rail

  • Truck drivers in California continue to protest the AB5 labour law. The protest led to the Port of Oakland to close some of its gates and marine terminals last week. 
    • The terminal gate for trucks closed after the night shift began at 6pm, 18th July as drivers protested outside.
    • The protests have also slowed traffic at the Ports of LA and Long Beach. 
    • The AB5 law requires independent contractors, which include 70,000 truckers in California to become employees. 
    • The protests have led to an increase in import container dwells at the Port of Oakland.
Benelux

Ocean

  • Barge users are facing surcharges due to the drop in water levels caused by a rise in temperatures.
    • Contargo have imposed surcharges between €201 to €589 ($206-$604) per 20ft box, depending on the water depth, and €259 to €775 per 40ft.
    • The drop in water levels means that barges have to carry less, therefore they adjust their low water surcharges because of increases in charter costs. 
    • The surcharge serves to worsen the current congestion as Antwerp and Rotterdam are already experiencing delays of 42 hours and 57 hours respectively. 
  • Hapag-Lloyd and ONE will continue to operate their joint North Europe – India IOS service throughout Q3 and Q4.
    • The ‘IOS’ calls at Jebel Ali, Karachi, Nhava Sheva, Mundra, Jeddah, Tanger Med, Rotterdam, Hamburg, London Gateway Port, Antwerp, Tanger Med, Jeddah, Jebel Ali.
    • While Hazira will remain skipped, Nhava Sheva and Mundra will be served on an alternating basis.
    • In Europe, Antwerp and London Gateway Port will also be served on alternating sailings only. 
UK and Rest of Europe

Road/Rail

  • Last weekend, trucks headed to France faced delays of several hours near Dover and the Eurotunnel in Folkestone. 
    • Routes around the Kent terminals were in gridlock and traffic queues were formed on the Eastbound M2 for four miles. 
    • 3000 lorries waited to cross the channel and had to park on the M20 outside Dover as holiday traffic was prioritised. 
    • However, it has been reported that vehicles are starting to flow freely today. 

 

  • Network Rail have announced strikes to take place on the 27th July.
    • More than 40,000 workers at Network Rail and 14 train operating companies are set to strike over a dispute in pay and working conditions. 
    • Although the Rail Freight Operating Companies are not involved, disruptions are to be expected on services this 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.

July 21st – Belgium

July 25th – Spain*

July 28th – Spain*

 

August 1st – Ireland

August 5th – Croatia, Spain*

August 15th – Austria, Belgium, Croatia, Cyprus, France, Germany*, Greece, Italy, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovenia, Spain

August 20th – Estonia, Hungary

August 29th, Slovakia

 

September 1st – Slovakia

September 2nd – Spain*

September 5th – Luxembourg*

September 6th – Bulgaria, Spain*

September 8th – Malta, Spain*

 

*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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