Zencargo Market Update: 7th February

Asia → North America (Transpacific Eastbound)

Rates

• Rates have remained relatively the same as China has slowed down factory production and port operations due to Chinese New Year. 

Capacity

• The schedule reliability from Asia to the US West Coast is at 10.1% in November/December 2021.
  • On a year-on-year level, schedule reliability decreased by 11.9% percent compared to 2020.
  • The average delay for late vessel arrivals increased to 15.07 days in November/December 2021. This is the highest overall recorded figure on the trade lane.
  • On a year-on-year level, the delay increased by 7.06 days.
• Schedule reliability is at 19.2% to the US East Coast in November/December 2021. 
  • On a year-on-year level, schedule reliability decreased by 7.1% compared to November/December 2020 which was at 26.2%. 
  • The average delay for late vessel arrivals improved in November/December 2021, decreasing by 0.7 days month-on-month to 8.46 days. 
  • On a year-on-year level, this was 3.54 days higher than November 2020 levels. 
  • The average delay for all vessel arrivals decreased month-on-month in November/December 2021 by 1.31 days to 5.83 days.

Ports

• • The ports of LA and Long Beach have 89 vessels waiting outside of ports. 
    • Sea Intelligence indicates that the number of days vessels are waiting is around 15 days for the West Coast. However, this depends on the carrier. 
    • The average delays on the East Coast is at 8.46 days. However, the number of vessels waiting is a lot smaller than on the West Coast.
      • At the ports of New York and New Jersey, the weekly average waiting time for an anchor is 2 days. 
  • The Ports of LA and Long Beach have delayed the ‘Container Dwell Fee’ to 11th February.
    • The two ports have seen a combined decline of 68% in ageing cargo on the docks since the program was announced on 25th October. 
    • Under the temporary policy, ocean carriers can be charged for each import container dwelling from nine days or more at the terminal. 
    • The ports plan to charge ocean carriers $100 per container, increasing in $100 increments per container, per day until the container leaves the terminal.

Asia → Europe (Far East Westbound)

Rates

• Rates have remained relatively the same as China has slowed down factory production and port operations due to Chinese New Year. 

Capacity

• Schedule reliability from Asia to Europe is at 22.9% in November/December 2021. This is the lowest recorded figure for this month.
• On a year-on-year level, schedule reliability decreased by 17.7% compared to November /December 2020 when schedule reliability was at 40.6%.
• The average time that vessels are delayed by is 9 days. This is the highest recorded figure on this trade lane.
  

Air

Asia 

Central China to USA and Europe

• The majority of factories will remain closed until 16th February because of the Chinese New Year Holiday. 
  • The rate will not increase this week from SHA Airport. If cargo can be prepared in advance, lower costs may be applied. 
  • Most cargo flights will not be cancelled, unless they are travelling to the Middle East. 
  • The epidemic controls at PVG airport are still in place however, there are no rules that are specific to Omicron due to the day-to-day control on COVID-19.
    • Over 40% of cargo flights are cancelled
    • Terminals are at 50% in terms of labour resources.
  • Rates from Ningbo airport to the USA and Europe have decreased this week. 
    • Rates and space will need to be checked with carriers on a case-by-case basis. 

North China to USA and Europe

• Factories are expected to open after 10th February. The air market for TSN Airport will therefore be normal after the Chinese New Year holiday. 
  • Truck service will also be in full operation from 15th February.
  • Rates are lower for both USA and Europe and space is currently better compared to the end of January. 
  • Please check on a case-by-case basis. 
• From PEK airport, rates remain the same level as the last week before the run up to Chinese New Year to Europe and the USA. 
  • Space remains tight and it better to confirm rates and space at 3-4 days in advance, 
  • Heavy and dense cargo will have special rates and should be checked on a case-by-case basis. 
  • Normal trucking service will resume from 9th February. 

South China to USA and Europe

• From CAN Airport, shipments need to be checked with carriers on a case-by-case basis to both destinations.
• From SZX Airport, the air rate has decreased to both destinations. 
• At XMN, some factories have not resumed word and freight has reduced. However, please check with your carrier on a case-by-case basis. 

Americas

• American Airlines is adding a service between New York and Doha and is resuming services between Charlotte and Rome. 
  • It is increasing international capacity by shifting wide-bodied flights operating on short haul routes Trans Atlantic routes including Barcelona, Lisbon and Venice. 
  • However, with the rise in passenger bookings, cargo-only flights are being restricted despite the high demand in cargo flights. 
  • In response to handling demands, American airlines are rolling out a new AI booking system which will allow customers to book complex shipments themselves. 

Europe/UK

• EFW has delivered its third A231 converted freighter to BBAM which will enter service as Lufthansa’s first A321 freighter.
  • The aircraft will be flown by Lufthansa City Line on behalf of Lufthansa Cargo. 
  • The aircraft can transport more than 28 tonnes of gross payload per flight.
  • The model offers 14 full-container positions on the main deck plus up to 10 container positions and pallet loading capabilities on the lower deck. 
  • A second A321 will be joining the Lufthansa fleet later this year. 
  • The aircraft will be used on intra-European services and will target E-commerce volumes. 

Road and Rail