Zencargo Market Update: 2nd May

China

Ocean

• It has been reported that Chinese companies are now relocating parts of their supply chains from China to other countries. 
  • Companies are shifting to India and other Asian nations such as Vietnam, Thailand, Malaysia and Indonesia. Mexico and other European countries have also benefited. 
  • A combination of geo-political risks and rising costs have pushed Chinese manufacturers to look for alternatives. 

USA

Ocean

• Freight rates are rising in the US as shipping lines are managing supply and demand more stringently ahead of a busy importing season.
  • The average spot market price to ship a 40ft container from Asia to the US West Coast has increased by 34% over the past two weeks, according to Xeneta. 
  • As many shippers have been delaying signing long term contracts, the increase in spot rates may be putting pressure on importers to lock into contracts. 
  • If you’re unsure about your rate strategy at the moment, book our 1:1 bespoke rate strategy consultations to find out more. 

Benelux

Ocean

• Here are some of Hapag’s Lloyd’s most recent updates from Europe:
  • At the Port of Antwerp, PSA, yard utilisation at 913 is between 75% – 80%. Due to ongoing bollards works at 913, there is slightly reduced berth capacity.
    • Yard 869 is at an operational level of 75% – 80%. 869 also has reduced yard capacity and berth capacity due to ongoing construction work
    • Empty storage area on both terminals is between 50% – 55%. 
  • At the AGW terminal, yard level is at 65% – 70%. 
    • Reefer plug capacity is at 55% – 60% and empty storage ranges between 35% – 40%. 
    • The terminal has received 3 new gantry cranes which are currently undergoing testing and will be available for full operations during the summer. 
  • At the Port of Rotterdam, Europe Container Terminals, the yard utilisation is currently between 70-75% but is predicted to decrease to 55-66%. 
    • Reefer plug utilisation is at 75% – 80%. 
    • There are two days of planned pier works for next week. Works will see 1
    • However, there will be minimal operational impact expected. 
  • Updates on the Rotterdam World Gateway include:
    • Yard levels are averaging between 60% – 65%. 
    • Import dwell times are at a good level and reefer plug utilisation is between 50% – 55%. 

UK

Ocean

• The Port of Aberdeen has invested £55 million to become the UK’s first net zero port.
  • The port is committed to spending £55 million over the next 10 years to become the UK’s first net zero port by 2040.
  • They will be targeting net zero emissions from vessels visiting the port (scope 3) to Scope 1 and 2 in its own port operations. 
  • To monitor its emissions, the port will compare them to a 2019 baseline, encompassing 55,000 tonnes of CO2 equivalent emitted across all three scopes, including scope 1, 2, and 3. 97% of the emissions were generated by 9,500 vessel arrivals, which were accounted for in Scope 3.

Road/Rail

• UK haulage spending has dropped by 4% as fuel spending has increased by 35%.
  • The data was taken from digital payment solutions provider, takepayments.
  • The fall in spending to fuel price rises as well as the HGV driver shortage were all linked to decrease in spend. 
  • The company also noted that there was a 17% drop in new car sales which means that haulage businesses are making spending cuts in reaction to the economic challenges.

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.

May 2 – Bosnia and Herzegovina (FBiH), Montenegro, Serbia, Slovenia, Spain*, Transdniestria (PMR)

May 3 – Poland

May 4 – Austria*, Latvia

May 5 – Denmark, Faroe Islands, Greenland (Kalaallit Nunaat), Latvia, Netherlands*

May 6 – Bulgaria, Russia

May 7 – Lithuania, Russia

May 8 – Belarus, Belgium*, Bulgaria, Czech Republic, France, Gibraltar, Guernsey and Alderney, Isle of Man, Jersey, Moldova, Russia, Saint Helena, Slovakia, Transdniestria (PMR), UK (United Kingdom)

May 9 – Belarus, Bosnia and Herzegovina (FBiH)*, Guernsey and Alderney, Jersey, Kosovo, Luxembourg, Moldova, Russia, Transdniestria (PMR)

May 15 – Spain*

May 17 – Spain*

May 18 – Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, Netherlands, Sweden

May 19 – Belgium*, Denmark*

May 24 – Bulgaria

May 27 – Sweden*

May 28 – Denmark, Estonia, Finland, Germany*, Netherlands, Poland, Slovenia, Sweden

May 29 – Austria, Belgium, Denmark, France, Germany, Hungary, Luxembourg, Netherlands

May 30 – Croatia, Spain*

May 31 – Spain*

*Not in all regions