Weekly Market Updates

Zencargo Market Update: 6th June

Jun 06, 2022

In focus: Port congestion puts more pressure on peak season in 2022

Port and terminal congestion continues to impact the operations of major container carriers, with 10.5% container ships unavailable due to supply chain delays, according to Sea-Intelligence. 

At the beginning of 2022, Sea Intelligence noted an improvement in schedule reliability for the first time in two years. However, this declined in April 2022 by 1.5%. Despite signs of progress, the first four months of 2022, a period that would typically experience lower volumes prior to peak season, schedule reliability remains at around a third of vessels. 

Shippers have expressed concerns as Shanghai has increased its throughput after two months of lockdown. Peak season appears to have started early as shippers have scheduled shipments earlier than usual. The ongoing labour negotiations on the US West Coast has also raised further concerns that any disruption may occur at the same time as a spike in incoming volume.

 

China

Ocean

  • Despite lifting its lockdown restrictions on 1st June, Shanghai faces slow recovery back to its pre-lockdown state. 
    • Many factories and businesses are still closed or operating below capacity.
    • 650,000 residents are still confined to their homes and 500,000 delayed containers will need to be rushed through the port of Shanghai. 
    • Although the city is prepared to rebound with government packages and overseas demand, the full quarter of lost growth will be challenging for China to meet its annual growth target of around 5.5%.
  • Equipment table
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 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 Shortage Normal
SHEKOU Normal Shortage Normal
HMM SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
NANSHA Normal Normal Shortage
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 Normal Normal Normal
SHANGHAI Normal Normal Normal
SHEKOU Normal Shortage Normal
NINGBO Normal Normal Normal
CMA QINGDAO Shortage Shortage Shortage
SHANGHAI Shortage Shortage Shortage
NINGBO Shortage Shortage Shortage
YANTIAN Normal Shortage Shortage
XIAMEN Normal Shortage Shortage
SHEKOU Normal 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 rate to the EU from Shanghai has increased slightly as charter flights such as F5 have not resumed yet. 
  • The rates to the USA from Shanghai are stable and have decreased slightly in some cases. 
  • PVG operations are recovering. Operations, customs entry and inland transportation will return back to normal in the next week or two. 
  • This week, rates from NGB Airport to the USA have remained the same and have decreased to Europe. 
    • Final rates depend on a case-by-case basis. 

North China to USA and Europe

  • Terminal operations at TSN Airport are expected to run more smoothly compared to previous weeks. 
    • From TSN to the USA, the air market is stable and the rates are the same as last week.
    • From TSN to Europe, Korea Airlines and Asian Airlines can provide available space for any urgent bookings. Rates with these two airlines are higher than other passenger flights which can provide spot rates for dense cargo with longer transit times. 
  • Rates remain the same level as last week from PEK to Europe and the USA.
    • Space is tight after the Dragon Boat Festival holiday. 
    • Covid restrictions are still tight and airport terminal operations have longer lead times. 
    • Trucking services are also limited in terms of cross-cities services. 
  • Rates from TAO to Europe and the USA have decreased this week and space is not so tight compared to last week. 

South China to USA and Europe

  • From CAN Airport to both destinations, rates have decreased this week. 
  • From SZX Airport, the rate is stable to the US but has increased to Europe as space is tight to Europe. 
  • From XMN Airport, rates are stable for Europe but have increased a little to the USA. 
  • All shipments need to be checked on a case-by-case basis.

Road

  • Trucking services have been reported to have improved in Shanghai. However, costs are elevated and passes will continue to be required when entering the area. 
    • Truck traffic is still less than 30% of the weekly average in 2019.
USA

Ocean

  • The ports of Los Angeles and Long Beach have delayed imposing the container dwell fee again. 
    • If implemented, the container fee applies to all containers that remain at the terminal for 9 days or more, and for rail containers 6 days or more. 
    • Carriers will be charged $100 per container, increasing in $100 increments per container per day. 
    • Implementation of the fee has been delayed since October/November 2021, when it was first announced. 
    • The volume of longstay cargo has decreased by 48% compared to October 2021. Port authorities have also reported no change in the percentage of lingering cargo over the last week, remaining relatively stable over the last month.
    • The LA and Long Beach port authorities will assess the need for this fee again on Friday. 
Benelux

Ocean

  • The Port of Rotterdam has announced that they are switching its vessels to biofuels in the short term in order to reduce its own carbon emissions. 
    • The Port of Rotterdam Authority reported that most of its CO2 emissions came from port patrol vessels.
    • To achieve a 90% reduction of carbon emissions by 2030, switching to biofuels will play a part to help them obtain this goal.
    • Their ambition is that by 2025, new vessels will be emission-free. 
  • For the Port of Antwerp PSA, Hapag Lloyd reports that yard utilisation at 869 has deteriorated to 80%. 913 is at 95% utilisation. 
  • For the Port of Rotterdam, Europe Container Terminals, yard level DDE is at 92% utilisation. Reefers at DDE are at 95%. The terminal is facing long dwell times. 
    • Containers set to go to Russia have also been held up at customs due to economic sanctions against the country due to the war in Ukraine which have taken up some space at the terminal. 
  • Hapag Lloyd reports that the upcoming Pentecost holiday will stress the availability of the Rotterdam World Gateway terminal. Utilisation is critical at 95% with around 23,000 TEU imports. Reefers are at 90%.
United Kingdom

Ocean

  • North Europe’s ports remain severely congested as they wait for the influx of import containers expected from Shanghai. 
    • Empty containers and export boxes have built up at major North European ports as carriers have blanked a third of their sailings during the two-month lockdowns in Shanghai.
    • According to Hapag-Lloyd, yard occupancy at Hamburg’s Container Terminal Altenwerder (CTA), was at 90% due to the discharge of import heavy vessels and reduced import pick up rates.

Road/Rail

  • Brent crude oil rises above $120 a barrel 
    • Brent crude, the international oil benchmark, has surpassed $120 a barrel, reaching a two-month high as petrol and diesel fuel prices continue to rise.  
    • Economists have attributed rising prices to rising demand and limited supply caused by loosening COVID-19 restrictions in China, the start of the U.S. driving season and disruptions caused by the war in Ukraine.
    • In addition E.U. leaders reached an agreement to ban 90% of Russian crude oil by the end of the year. 
  • Ukraine and Poland agree on joint customs control 
    • Ukraine and Poland have signed an agreement to set up a joint border control post between both countries.
    • Ukrainian President Volodymyr Zelenskiy announced that this will significantly speed up border procedures. 
    • The war has forced Ukraine to export by train or via its Danube River ports instead of its sea ports.
    • Therefore, the joint customs control may ease the country into the EU. 

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 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

 

*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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