Weekly Market Updates

Zencargo Market Update: 27th June

Jun 27, 2022

In focus: Spot container rates have fallen below long-term rates

Spot container freight rates from the Far East to the USA have fallen below contract rates negotiated earlier last year.

This year, businesses have placed peak season orders early in the hope of building inventory which has caused long term contract prices on the transpacific eastbound lane to become higher than spot rates. 

Businesses should speak to their freight forwarding partners and collaborate to find the best rates and space for their shipments.

 

China

Ocean

    • Ports across China moved a total of 116.5 million TEU from January to May 2022, a 2.3% increase year-on-year.
      • Despite being in lockdown, Shanghai was still China’s most productive port in May, handling a total of 3,400,000 TEU.
      • The Ports of Dalian and Yinkou handled the least amount of containers last month, both moving 350,000 TEU. 
      • The Port of Ningbo-Zhoushan saw the largest increase in volumes, moving 3,370,000 TEU in May, an increase of 18/7% year-on-year.
    • 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
QINGDAO Shortage Normal Normal
DALIAN Shortage Normal Normal
TIANJIN Shortage 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
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 Shortage Normal
XIAMEN Normal Shortage Normal
SHEKOU Normal Normal Normal
NINGBO Normal Shortage Normal
SHANGHAI Normal Shortage Normal
QINGDAO Normal Shortage Normal
OOCL YANTIAN Shortage Shortage Normal
SHANGHAI Normal Normal Normal
SHEKOU Normal Normal Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
XINGANG Shortage Shortage Shortage
YANTIAN Normal Normal Normal
XIAMEN Shortage Shortage Shortage
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 Normal Normal
SHEKOU Normal Normal Normal

Air

Central China to USA and Europe

  • From SHA airport, flights have been cancelled this week. Rates are stable from SHA to the US but are rising from SHA to Europe. 
    • Businesses should confirm bookings earlier to book space. 
  • PVG airport operations are slowly recovering and operations are expected to return to normal in one to two week.
  • This week, rates from NGB Airport to the USA and Europe have increased.
    • Final rates should be checked on a case-by-case basis. 

North China to USA and Europe

  • From TSN to Europe and the USA, Korean Air or Asiana Airlines are available to provide space for any urgent bookings. However, rates with these two airlines are higher than passenger flights. 
    • Trucking has resumed to its normal services as Covid-19 has eased in the TSN area.
    • Operations at TSN terminals are expected to run more smoothly compared to previous weeks. 
  • Rates remain the same level as last week from PEK to Europe and the USA and capacity is tight. 
    • Due to the hot and rainy season, some carriers have taken on less volume and have even cancelled or rescheduled their flights.

South China to USA and Europe

  • From CAN to Europe and the USA, shipments need to be checked with carriers on a case-by case basis. 
  • From SZX Airport, the rate is stable to the US but has increased to Europe. 
  • From XMN Airport, rates have decreased this week to Europe and the USA. 
    • All shipments need to be checked on a case-by-case basis. 
USA

Ocean

  • MSC has announced some changes to its Asia – North America services. 
    • The carrier has announced that the direct Dachan Bay & Shekou to/from Long Beach connection will become part of its Southeast Asia – California service. This connection was previously offered by the ‘Puma’ loop which was left without any ship assigned. 
    • MSC has also upgraded its Asia -US East Coast ‘Santana’ service from 4,400 -5,100 TEU to 8,100 – 9,600 TEU. 
    • The revised rotation of the ‘Santana’ service will no longer call at Houston.
      • Therefore, the carrier will launch a completely new Far East – US Gulf – USEC ‘Zephyr’ service. 
  • On 13th June, the US passed a new Ocean Shipping Act, increasing the powers of the Federal Maritime Commission (FMC).
    • This Act will give the FMC the authority to investigate the business practices of carriers and require carriers to produce report details of imports and exports on a quarterly basis. It will also make it illegal for carriers to unreasonably refuse to take US exports. 
    • This reform is the first overhaul of the US shipping Act since 1998 as President Joe Biden has spoken out against carriers for raising their freight costs. 
Benelux

Ocean

  • Hapag-Lloyd reports that labour availability at PSA terminal, Antwerp, remains stable. 
    • Yard utilisation at 869 has improved to 80%. At 913, yard utilisation is at 75%. 
    • Reefers at 869 increased 5% to a utilisation of 80%/ However, reefers at Quai 913 decreased to 75%. 
  • At European Container Terminals, Rotterdam, Hapag-Lloyd has reported a shortage of labour.
    • This shortage has been caused by a rise of COVID infections which requires quarantine measures of 5 days. 
    • The beginning of the summer holiday season has also stressed further availability. 
    • At DDE, yard levels have decreased to 71% and reefers have decreased to 50% of the plug utilisation.
    • The terminal is facing long dwell times for import cargo. 
      • ECT off yard storage is fully utilised with customs-blocked Russian cargo and long-stay imports. 
    • ECT has stopped accepting empty containers this week and container pickup is required to reduce dwell times. 
  • At Rotterdam World Gateway (RWG), a shortage of labour has also been reported.
    • Utilisation remains stable at 80% and reefers are at 65%. 
    • This is expected to rise with upcoming calls to discharge heavy vessels. 
    • RWG is not accepting empty containers until further notice. 

Air

  • The Dutch government is reducing the number of flights from Schiphol Airport from November next year.
    • This is part of their efforts to reduce noise and environmental pollution. 
    • The government plans to reduce the number of slots at Schiphol by 12%, from 500,000 per year to 440,000.
    • KLM, a Dutch carrier, has announced that these plans will have consequences for accessibility and international trade in the Netherlands. 
United Kingdom

Ocean

  • New industrial action is underway in Bremen, Germany. 
    • Negotiations between the German trade union, ver.di, and the Central Association of German Seaport Companies (ZDS) broke down last week. 
    • The talks about wage increases broke down and strikes come at a critical time for the European ports sector, as shipments from China are expected to lead to a surge in imports into Europe in the coming weeks. 
  • Thousands of UK shippers are yet to register for the UK government’s Customs Declaration Service (CDS). 
    • From 30th September, businesses must migrate from the legacy customs system, CHIEF, to CDS, declaring their imports. 
    • This week, HMRC announced that it had contacted more than 220,000 businesses to urge them to move to CDS if they had not already done so.

Road/Rail

  • Train strikes over the weekend disrupt services across the UK.
    • On Saturday, 40,000 members of the RMT union went on strike over disputes over pay and conditions on the railways. 
    • The union was offered a package worth 3% despite inflation levels reaching 9.1%.

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 28th – UA

June 29th – CH

 

July 3rd – BY

July 5th – CZ, SK

July 6th – CZ, LT

July 10th – TR

July 11th – TR

July 12th – Northern Ireland, TR

July 13th – ME, TR

July 14th – FR, ME

July 21st – BE

*Not in all regions

 

 

 

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