Zencargo Market Update: 26th June

China

Ocean

• To reduce their reliance on China, US and European companies are considering shifting their manufacturing to countries like India and Southeast Asia.
  • However, these regions lack the ports capable of accommodating the mega-container ships crucial for global trade. 
  • China’s massive investment in port infrastructure has enabled its dominance as the world’s leading manufacturer. 
  • While China has 76 port terminals able to support large ships carrying more than 14,000 20ft containers, south and south-east Asian countries have just 31 between them.
  • Other Asian emerging markets would need substantial investment to catch up, making it challenging for businesses to transition their supply chains. 
  • Despite geopolitical tensions, there’s still an increase in interest in diversifying away from China.

Air

Central China to USA and Europe 

• From SHA to Europe and the US, flights have been cancelled due to C-Check’s  (aircraft compliance checks) and because of the E-Commerce cargo season.
  • Air freight to the EU and the US is stable. 
• Rates from NGB to To Europe have decreased this week and remain stable to the US. 
  •  Final rates depend on a case-by-case basis. 

North China to USA and Europe 

• From TSN to Europe and the US, the air market is slow this week so rates are low. 
  • We recommend booking 3 -4 days prior to the cargo ready date for shipments to Europe.
  • For Europe, the main services on this lane include Air China, Lufthansa and Singapore Airlines. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
  • For the US,  the main services on this lane include Japan Airlines, All Nippon Airways and Cathay Pacific. Korean Air and Asiana Airlines can provide freight flights that can offer an earlier estimated time of departure and arrival. 
• From PEK to Europe and the US rates are at a low level. 
  • The main carriers on the PEK to Europe lane are Air China, Lufthansa, Air France, KLM and Singapore Airlines
  • The main carriers from PEK to the US are Japan Airlines, All Nippon Airways and Cathay Pacific.
  • Due to hot weather, loading space has become limited and unstable. 
  • Special rates can be applied to heavy dense cargo. Please check on a case-by-case basis. 
• From TAO to Europe and the US rates are stable this week. 
  • Most space to EU airports is not so tight this week, apart from London Heathrow as passenger luggage has increased. 
  • The impact caused by the All Nippon flight cancellations from TAO to the US on 24th and 25th June has made space tight. 
• From CKG to Europe and the US, operations are running normally. 
  • Rates have raised a little on the CKG to US route. 

South China to USA and Europe 

• From  CAN to Europe and the USA, the market is unstable at the moment. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From SZX to Europe and the US rates have decreased.
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis. 
• From XMN to Europe and the US rates have remained stable.
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.

USA

Ocean

• Both houses of Congress in the US are considering legislation to restrict the flow of e-commerce imports by eliminating the exemption from duties and taxes for shipments valued under $800. 
  • The bills seek to address concerns about counterfeit products, consumer safety, and illegal trade, particularly from China. 
  • However, critics argue that the proposed changes may not effectively address these issues and could have unintended consequences for trade and global supply chains. 
  • The push for near-shoring is also gaining traction as companies explore alternative sourcing strategies beyond China.

Panama

Ocean

• The Panama Canal Authority has implemented draft restrictions due to low water levels caused by climate change. 
  • As of its June 14th advisory, the maximum authorised draft for the Neopanamax locks has been reduced to 44 feet, impacting cargo capacity and vessel operations. 
  • Capacity is limited due to low levels in the canal and as a result, shipping companies are adapting their network planning and offering alternative routes, such as the Suez Canal, to mitigate delays and minimise supply chain disruptions.

Benelux

Ocean

• The Port of Rotterdam Authority, along with Dutch organisations Invest International, Gasunie, and Hyphen, has signed a Memorandum of Understanding (MoU) with Namibian Implementation Authority Office, Namport, and Nampower. 
  • The MoU aims to develop a cooperation agreement for green hydrogen infrastructure, creating new hydrogen supply chains between Luderitz and Rotterdam. 
  • This collaboration strengthens the existing partnership between the Netherlands and Namibia and seeks to accelerate the development of the hydrogen economy in Namibia while establishing an export trade relation with the Netherlands and North West Europe.

UK

Ocean

• The United Nations Conference on Trade and Development (UNCTAD) has published the new 2023 data for the number of vessels registered in each individual flag state around the world.
  •  Sea Intelligence has analysed data in 2023 to the data in 2023 to understand the changes that happened during the pandemic period. 
  • From the numbers, the UK has seen the largest decline during the pandemic. This may be more related to Brexit rather than the pandemic.

Road

• The Road Haulage Association (RHA) has welcomed the UK government’s decision to increase the funding band for the HGV C+E apprenticeship from £7,000 to £8,000. 
  • This move comes in response to a 20% increase in operating costs for lorries. 
  • However, the RHA expressed disappointment with the funding increase for heavy vehicle technicians, which rose from £15,000 to £20,000. 
  • The association argues that this amount falls short of the required £23,000 to make running the courses viable. The RHA has called on ministers to reconsider and provide the necessary funding support.

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.

June 29 – Italy*, Malta, Spain*

July 5 – Czech Republic, Slovakia 

July 6 – Czech Republic, Lithuania

July 11 – Belgium*

July 14 – France

July 21 – Belgium

July 25 – Spain*

July 28 – Spain*

Aug 5 – Croatia, Spain*

Aug 7 – Ireland (Eire)

Aug 14 – Romania*

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

Aug 20 – Estonia, Hungary

Aug 29 – Slovakia

Sep 1 – Slovakia

Sep 2 – Spain*

Sep 4 – Luxembourg*

Sep 6 – Bulgaria

Sep 8 – Malta, Spain*

Sep 11 – Spain*

Sep 15 – Slovakia, Spain*

Sep 20 – Germany*

Sep 21 – Malta

Sep 22 – Bulgaria

Sep 24 – Austria*

Sep 27 – Belgium*

Sep 28 – Czech Republic

*Not in all regions