Weekly Market Updates

Zencargo Market Update: 30th May

May 30, 2022

In focus: Shanghai will end its lockdown from 1st June

Although Shanghai’s port has been operating throughout, it has been running on reduced capacity. 

The reopening of Shanghai will disrupt the local ports as factories will try to fulfil backlogs and this will have knock-on effects on the rest of the global supply chain. 

Martime shipping consultants, Drewry, estimated that as many as 260,000 TEUs had not shipped during the nine week lockdown. 

Ports in the US and North Europe are already congested despite the temporary lull in Chinese import volumes. Therefore, the influx of Chinese imports will cause severe disruption at ports around the world. 

 

China

Ocean

  • The Port of Shanghai reports that container throughput is increasing. 
    • Chinese officials have reported that the Port of Shanghai has nearly returned to productivity levels seen before the lockdowns began at the end of March. 
    • The throughput at Shanghai has rebounded to 95% of the normal activity before the lockdowns. 
    • Trucking volumes have also rebounded to around 90% of capacity. However, as truckers are still required to produce negative test results, this limits their entry into the port area.
    • Overall wait times for vessels are down by approximately half from late April when the city was in lockdown. Wait times are
  • Equipment table
Carriers POL 20GP 40GP 40HQ
HPL NINGBO Normal Normal Shortage
SHANGHAI Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
MSK QINGDAO 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
SHEKOU Normal Normal Normal
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Shortage
SHEKOU Normal Normal Shortage
MSC SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
EMC YANTIAN Normal Normal Normal
SHEKOU Normal Normal Normal
NINGBO Normal Normal Normal
SHANGHAI Normal Normal Normal
QINGDAO Normal Normal Normal
OOCL YANTIAN Shortage Shortage Shortage
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Shortage
CMA QINGDAO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
YANTIAN Shortage Shortage Shortage
SHEKOU Shortage Shortage Shortage
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

  • The COVID-19 situation in Shanghai is easing.
    • There are no big changes to the US this week but capacity has increased a little and the rate is stable.
    • From Shanghai to Europe, 10 cargo flights to the EU last weekend were cancelled. Rates have also increased on this route. 
    • Rates should be quoted on a case-by-case basis.
  • This week, rates from NGB Airport to the USA have remained the same and have increased to Europe. 
    • Final rates depend on a case-by-case basis.

North China to USA and Europe

  • From TSN to the USA, the air market is stable and the rates are the same as last week. However, capacity is tight. 
    • Businesses are advised to book space a week in advance. 
    • If you require urgent bookings, Korean Airlines and Asiana Airlines are the better options. Please check on a case-by-case basis. 
  • Rates remain the same level as last week from PEK to Europe and the USA.
    • Air rates have increased since last week as many flights were cancelled at Zhengzhou Xinzheng International Airport.
    • Many of those shipments have rerouted to PEK airport causing tight capacity and increased rates. 
    • Some areas in Beijing have been placed in a COVID-19 lockdown, including the airport areas, affecting terminal operational efficiency. 
    • This has limited trucking services due to restrictions that have been put in place to prevent the spread. 
  • Please work with your freight forwarding partners to reconfirm rates and space 4 to 5 days in advance.

South China to USA and Europe

  • From CAN Airport to both destinations, rates have increased as some airlines have cancelled their flights. 
  • From SZX Airport, the rate is stable to the US but has increased to Europe. 
  • From XMN Airport, rates are stable this week. 
  • All shipments need to be checked on a case-by-case basis.
USA

Ocean

  • The ports of LA and Long Beach have been ranked as among the most inefficient ports out of 370 global ports in 2021.
    • The two ports have been ranked 269 and 370.
    • The ranking is based on the time vessels need to spend in the port.
    • The worst performing ports had common themes of a lack of operating efficiency, limited land and maritime access, poor coordination and inadequate oversight. 
    • The port of Virginia is the top ranked port in North America at number 23, followed by Miami at 29. 
  • US ports are expecting this year’s peak shipping season to start earlier than usual, at the end of June. 
    • Shippers are looking to avoid the risk of delays and therefore are looking to ship earlier than usual.
    • The lifting of restrictions in China may also see an influx of imports from the Far East. 
    • A combination of existing port congestion, full warehouses, a lack of trucking services and equipment may result in overwhelmed port operations and further congestion. 
Benelux

Ocean

  • The Port of Antwerp-Bruges will soon welcome the first hydrogen powered tugboat, the Hydrotug. 
    • The Hydrotug runs on both hydrogen and traditional fuel,and can store up to 415kg of compressed hydrogen, eliminating emissions equivalent to those of 350 cars.
    • The vessel is part of the port’s sustainability plans to become climate neutral by 2050 as Antwerp-Bruges strives to integrate environmentally friendly technologies. 
    • It is expected that this will be operational in the first quarter of 2023. 
United Kingdom

Ocean

  • The UK ports of London, Southampton, Teesport and Tilbury are starting to charge ‘customs clearance fees’ ranging from £17 – £25 per entry. 
    • There have been suggestions that this move was to compensate for the cancellations of phytosanitary controls in July. 
    • At the end of April, the UK government announced that it will be scrapping the implementation of phytosanitary controls in July. This impacted ports as many have spent millions in developing border control posts in preparation for the controls. 

Road/Rail

  • UK rail workers vote to take strike action
    • The RMT union has announced that 89% of its 40,000 members voted to take industrial action this summer in a dispute over pay, jobs and safety
    • The turnout for the ballot was 71%. Strike action could start as soon as the middle of June.
    •  There are concerns that vital freight trains carrying fuel and food could be held up. Road transport is not seen as a replacement, because of the continuing shortage of HGV drivers.
  • Fuel prices continue to rise.
    • The government’s weekly fuel prices shows that the increase is currently running at more than one pence per litre (ppl) per week, with fuel prices rising to almost 180ppl this week, an increase of 1.3ppl in a week. 
    • This latest rise brings the price to almost 50ppl more than this time last year. The price of Brent crude oil – the global benchmark for prices – has soared in recent months after Russia’s invasion of Ukraine raised concerns of potential global supply issues.
    • Ahead of the invasion, fuel prices had already been rising after demand increased following the reopening of economies from coronavirus lockdowns in China.
  • HGV registrations fall 2.3% due to supply chain and economic issues
    • The registrations of HGVs has declined by 2.3% in the first quarter of 2022.
    • Registrations of rigid trucks fell by 10.1% to 4,975, accounting for just over half (50.6%) of the market, while those of articulated trucks rose by 7.4% to 4,862 units.

 

  • Operation Brock on M20 in Kent to remain until after Platinum Jubilee Bank Holiday
    • Operation Brock on the M20 will remain in place until after the Platinum Jubilee Bank Holiday.
    • Operation Brock is the ‘contraflow system designed to keep traffic on the M20 and other roads in Kent moving when there is disruption to travel across the English Channel’.
    • Transport bosses say the traffic contraflow will not be lifted because of expected busy roads and reduced ferry capacity at Dover at the end of May.
    • Under current plans, the decision means National Highways will remove the M20 controls that manage the flow of freight heading to Europe from the motorway overnight on Sunday, 5 June.
  • Port congestion expected at the end of May/Start of June
    • Cross-Channel routes are set for a particularly busy final week of May due to the half-term getaway, combining with the large numbers of football fans heading to Paris for the UEFA Champions League final.
    • While Irish Ferries has added another vessel to its Dover fleet and P&O ferries have resumed a reduced service out of the port.
    • Local and tourist traffic is also expected to be busy over the four-day Jubilee celebration marking the Queen’s 70 years of service to the nation, from Thursday 2nd to Sunday 5 June.

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 30th – GB, HR

 

June 1st – MD, RO

June 2nd – DE, GB, IT

June 3rd – GB

June 5th – DE, DK, EE, FI, NO, NL, SE, SI

June 6th – AT, AD, BE, CH, DE, DK, FR, FL, HU, IE, LU, NO, NL, SE

June 7th – CH*

June 8th – DE

June 10th – PT

June 12th – RO, RU

June 13th – GR, RO, RU, UA

June 16th – AT, DE, FL, HR, PT, PL

June 22nd – HR

June 23rd – EE, LU, LV

June 24th – EE, LT, LV

June 25th – FI, HR, SE, SI

June 28th – UA

June 29th – CH

 

 

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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