Zencargo Market Update: 26th February

Ocean

• Rates are declining for the first half of March, however there’s a divergence among certain carriers in the UK market compared to North Continent Ports due to low demand post-Q4, extending into Q1 2024.
  • Negotiations for long-term deals are up for discussion post-Chinese New Year as carriers reassess demand patterns. 
  • While some carriers are receptive to such deals, the majority are awaiting further clarity on the market situation. 
  • February’s space is fully booked, with March’s availability varying by carrier. 
  • Blank sailings are prevalent this week and the next due to factory closures related to Chinese New Year.

Air

Central China to Europe

• From SHA to Europe, rates remain level and there is a lack of cargo to most European destinations such as Frankfurt and London Heathrow Airport.
  • However, Amsterdam Airport Schiphol is experiencing full capacity.
• From NGB to Europe, rates have decreased this week and final rates depend on a case-by-case basis. 
  • We suggest booking space 4-5 days prior to the cargo ready date.  

North China to Europe

• Rates from Korean Airlines from TSN to Europe are high and fluctuating. Asiana Airlines are confirming rates on a case-by-case basis. 
• On DLC/PEK to Europe, rates with most airlines are fluctuating this week. 
  • Market rates are expected to resume to normal levels, but please check this on a case-by-cases basis.
• Space is not tight from TAO to Europe. Estimated Time of Departure is 4-5 days after booking. 
  • Rates have increased and spot rates can be applied for dense cargo. 

South China to Europe

• From SZX to Europe, the market is stable and volumes have decreased. 
• From XMN to Europe, the market is almost the same this week but final rates will need to be checked on a case-by-case basis when booking. 

Ocean

• By early May, ONE will launch a new Vietnam-China-Taiwan-USA AP1 loop which will be jointly operated with Wan Hai lines. 
  • This new 8-week loop will call at Cai Mep, Shekou, Xiamen, Taipei, Ningbo, Shanghai, LA, Oakland and then back to Vietnam.
  • Ships will have a capacity of approximately 5,500 – 14,000 TEU with the agreement of a minimum 12 month contact.

Air

Central China to USA

• From SHA to the USA, there has been no change compared to last week and the market is slow. 
• From NGB to the USA, rates have remained stable this week. We suggest booking 4-5 days in advance of the cargo ready date. 

North China to USA

• Rates from Korean Airlines from TSN to the USA have increased and are fluctuating. Asiana Airlines are confirming rates on a case-by-case basis. 
• On DLC/PEK to the USA, rates with most airlines are fluctuating this week. 
  • Market rates are resuming to normal levels, but please check this on a case-by-cases basis.
• Space is a little tight from TAO to the USA. 
  • Rates have increased and spot rates can be applied for dense cargo. 

South China to USA

• From SZX to the USA, the market and rates are stable this week. 
• From XMN to the USA, the market is almost the same this week but final rates will need to be checked on a case-by-case basis when booking. 

Ocean

• Rate increases are anticipated to continue into March due to equipment availability in most parts of Europe, particularly south of Germany, Poland and the Western Mediterranean. 
  • There have been blank sailings and vessel redeployments to address the Red Sea situation.
  • However, capacity remains relatively stable. 
  • The Panama Canal drought issues have had minimal impact on container vessels transiting in January year-over-year.

USA

Ocean

• Since the latest market update, there has been an overall improvement in dwell times and congestion at US ports:
  • The Ports of LA and Long Beach have 3 vessels waiting to berth with a 8-day dwell time at the rail heads. 
    • Extra man power has been deployed for these ports over the past couple of weeks due to an increase in volume. 
  • Oakland has seen a decrease from 11 to 4 vessels waiting to berth with a 4-day dwell at the rail heads. 
• The US East Coast ports have seen significant improvement across the country.
  • New York and New Jersey have 0 vessels waiting with a 4-day dwell time at the rail heads. 
  • Baltimore and Norfolk currently have 0 vessels waiting at berths. 
  • Finally, Savannah has 1 vessel waiting with a 2-day dwell time at the rail heads.
• The Panama Canal Authority has announced plans to allocate more than $8.5 billion in capital investments towards sustainability projects over the next 5 years. 
  • The effort to combat climate change comes after sustained low water levels of approximately 13.4 metres, with no indication of when levels will return to normal.
  • The investment surpasses the $5.4 billion cost of the Panama Canal expansion, the largest improvement project in the Canal’s history. 
  • Currently only 5 containerships are permitted to transit per day since the start of 2024. 
  • This has caused delays of up to 3 days, whereas in normal operating conditions up to 32 vessels would pass per day.

Benelux

Ocean

• Here is an update from Hapag-Lloyd on ports in the Benelux region:
  • Antwerp, Belgium
    • PSA 913: Repair operations are still ongoing after a crane collapsed in part of the yard. 
      • Yard utilisation stands at 75-80%, with reefers at 65-75%  and empty containers ranging from 60% to 65%.
    • PSA 869: Yard utilisation is at 60% to 65%, with reefers at 40 -45%, and empty containers at 60% to 65% utilisation.
      • Current civil works at PSA 869 has resulted in approximately a 400-metre reduction of berth space.
      • This reduction is allowing one large vessel alongside at times, and focusing the cranes on one vessel has boosted productivity.
      • There have been no negative impacts on operations.
    • AGW: Antwerp Gateways yard utilisation is at 60-65%. Reefer plugs are at 60-65% and empty containers are at 60-65%. 

• Rotterdam, The Netherlands
  • ECT: Yard utilisation is at 60-65% and empty container levels are under control.
    • Terminal is open for additional volume and is currently flexible for vessel arrivals
  • RWG: Yard utilisation is at 60 – 65% and the berth line-up is high. 
    • High winds are expected for Friday which might impact operations. 

United Kingdom

• Approximately 150 M25 maintenance workers employed by Balfour Beatter are voting for strike action over pay.
  • The ballot is in response to Balfour Beatty’s pay offer increase of 3.4%
  • With the rate of inflation, RPI, at 4.9%, Unite said that the offer amounts to a pay cut in real terms. 
  • Workers are also disgruntled about the pay rise offer they received last year which was also below inflation levels. 
  • Voting will close on 12th March but if successful, could result in severe disruption to traffic as Balfour Beatty is responsible for the maintenance of the entire M25.

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.

Feb 28 – Spain*

March 1 – Spain*

March 3 – Bulgaria

March 4 – Bulgaria

March 8 – Germany*

March 11 – Lithuania 

March 15 – Hungary

March 17 – Ireland (Eire)

March 18 – Cyprus, Greece, Ireland (Eire)*

March 19 – Austria*, Malta, Spain*

March 25 – Cyprus, Greece

March 28 – Denmark, Portugal*, Spain

March 29 – Austria*, Czech Republic, Denmark, Estonia, Finland, France*, Germany, Hungary, Ireland (Eire*), Latvia, Luxembourg*, Malta, Netherlands*, Portugal, Slovakia, Spain, Sweden

March 30 – Sweden*

March 31 – Croatia, Denmark, Estonia, Finland, Germany*, Italy, Lithuania, Malta, Netherlands, Poland, Portugal, Slovenia, Sweden

April 1 – Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta*, Netherlands, Poland, Slovakia, Slovenia, Spain*, Sweden

April 10 – Spain*, 

April 23 – Spain*

April 25 – Italy, Portugal

April 27 – Netherlands, Slovenia

*Not in all regions