Weekly Market Updates

Zencargo Market Update: 26th September

Sep 26, 2022

In Focus: How will a second round of industrial action at Felixstowe affect supply chains?

The second round of strikes at the Port of Felixstowe will start tomorrow, 27th September, and will last for a total of eight days. This will coincide with the Port of Liverpool strikes which we mentioned in our previous market update

The Port of Felixstowe handles nearly half of the containerised freight entering the UK and this latest industrial action will lead to vessels diverting to other ports in the UK or to Europe. 

If strikes continue, shippers may eventually choose to avoid Felixstowe altogether as they may question the port’s reliability. 

If your cargo is affected by the strikes, please work with your partners to make contingency plans. If you’re a Zencargo customer, our Customer Operations team should have already contacted you if your shipments are affected by the industrial action. 

China

Ocean

    • Container capacities on the main trade routes from China are set to decrease following Golden Week as carriers announce blank sailings. 
      • China’s Golden Week runs between October 1st to 7th and is a period where Chinese factories will be closed for the national holiday. 
      • Sea Intelligence has noted that in the past two years, blank sailings were used to keep schedules due to delays at congested ports. 
      • Carriers are now using blank sailings to balance supply and demand. Transpacific capacity will reduce by 22%-28% after Golden Week. This reduction is greater than 2019 levels which decreased by 15%-17%.
      • Capacity will also reduce by just under 20% on the Asia to North Europe route.
    • 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 Shortage Normal
NANSHA Shortage Shortage Normal
SHANGHAI Normal Normal Normal
HONGKONG Normal Normal Normal
SHEKOU Shortage Shortage 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 Shortage Normal
NANSHA Normal Shortage Normal
SHANGHAI Normal Shortage Normal
QINGDAO Normal Normal Normal
HONGKONG Normal Normal Normal
NINGBO Normal Normal Normal
SHEKOU Normal Shortage Normal

Air

Central China to USA and Europe 

  • From SHA to both the USA and Europe, space is tight between 1st-7th October, due to the upcoming Chinese national holiday, Golden Week. Rates are likely to decrease during the 2nd half of the holiday. 
    • Rates will continue to decrease after 8th October.
  • From NGB to Europe, rates have remained the same and the market is stable

North China to USA and Europe 

  • From TSN to Europe, rates have decreased. However, rates have remained the same between TSN and the USA as compared to last week. 
    • Capacity is not as tight as expected and airlines are offering competitive rates to attract more bookings. 
  • Rates have decreased from PEK to Europe and the USA. Space is still tight to both lanes. 
    • Due to hot weather and rain, carriers are taking on less volume and have even cancelled or rescheduled flights.

South China to USA and Europe 

  • From CAN to Europe and the USA, the market is busy due to Golden Week and airlines have increased their rates for this week. 
  • From SZX to Europe and the USA, rates have again increased to both trade lanes due to China’s national holiday. 
  • From XMN to Europe and the USA, flights may be cancelled due to the national holiday. Rates remain the same as last week on both trade lanes.
USA

Ocean

  • Average capacity between Asia to the US West Coast has fallen to its lowest since February over the past 4 weeks. 
    • An average of 275,000 TEU has left Asia for the US West Coast which is 50,000 TEU less than the peak in early August. 
    • Carriers are using blank sailings to balance supply and demand for space which is likely to slow down the decrease in spot rates.  
    • A total of 1.5m TEU from Asia to the US West Coast was blanked over the last 12 weeks. 

 

Benelux

Ocean

  • The Port of Rotterdam Authority has awarded Swietelsky Rail Benelux a contract to construct a new pipeline strip for the movement of hydrogen  and CO2.
    • Rotterdam has an extensive network of over 1,500 kilometres of pipelines to transport crude oil, chemicals and industrial gases.
    • The newly awarded pipeline project is planned to be open access for any company looking to consume or supply hydrogen. 
    • The Port of Rotterdam is looking to reduce its carbon emissions by 55% by 2030 and reach net zero by 2050. 
    • Their ongoing projects will combine hydrogen and biofuel production to reduce carbon emissions by 23 million tonnes. 
UK and Rest of Europe

Ocean

  • Carriers have found it easier to navigate the disruption around the second industrial action at Felixstowe. 
    • Carriers have advanced ship calls and delayed others on the eve of the eight day strike at Felixstowe.Other imports will be diverted to other UK or European ports. 
    • Due to less congestion from other North European ports, shipping lines have been able to better navigate around the second Felixstowe strikes compared to the first. 
    • As other North European ports are less busy, they are able to accommodate extra arrivals diverted from Felixstowe. 

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.

September 27th – Belgium*

September 29th – Czech Republic

 

October 1st – Cyprus

October 3rd – Germany

October 5th – Portugal

October 10th – Austria

October 12th – Spain

October 23rd – Hungary

October 26th – Austria

October 28th – Cyprus, Czech Republic, Greece

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

*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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