Weekly Market Updates

Zencargo Market Update: 8th August

Aug 08, 2022

In focus: How will the threat of conflict between China and Taiwan impact supply chains?

Last week, Nancy Pelosi, Speaker of the US House of Representatives visited Taiwan despite warnings from China. It was the first visit of it’s type for 25 years and triggered an Following the visit, China conducted its biggest ever military drills around Taiwan and continues to maintain pressures on the country’s defences

Any conflict between the two countries would have serious consequences on supply chains as disruptions to the Taiwanese and Chinese region could affect global industries such as the automotive and tech industries. Global eyes turn, in particular, to the Taiwan Straight – a 130km body of water between the island and the Chinese mainland that is the primary shipping route not only between China and Japan, but that connects South Korea’s ocean exports to global consumers. 

The automotive and tech industries are already facing global shortages and any further disruption to Taiwanese supply chains would place added pressure on a stretched industry. 

It is advisable to continuously monitor the situation and understand if any suppliers or cargo may be affected in the region. 

In focus: Industrial action at Felixstowe threatens UK Supply Chains

92% of workers at the Port of Felixstowe, which handles almost half of the UK’s container traffic, have voted in favour of a strike over pay. They plan to walk out for 8 days from the 21st of August. 

A strike at the port, where dockers last downed tools in 1989, would have a ripple effect across UK supply chains. We predict shortages in equipment, further congestion, increased dwell times at the port and changes to scheduling. 

Zencargo customers are recommended to speak with their Customer Success manager who will work on contingency planning with you to minimise disruption.

Talks have resumed this week. For more information, please check out our latest updates about Felixstowe here

 

China

Ocean

    • Wuhan is the latest district to face lockdown restrictions, affecting one million people.
      • The city is a natural river port and lies at the confluence of the Yangtze and Hanjiang rivers. 
      • The manufacturing centre of Shenzhen has also reported a rise in Covid cases, causing factories to go back to closed loop systems for seven days and requiring workers to work in sealed off areas.
      • The latest statistic shows that 260 million people in China are in partial or complete lockdowns.
    • Strong winds and the monsoon season have created further terminal congestion at the Port of Ningbo. Berth waiting times at Ningbo and Yantian are 1 to two days. 
      • Similar weather conditions at Qingdao have contributed to waiting times of 2 to 3 days. 
      • Shanghai’s berth waiting times are at 1.5 days.
    • See equipment table 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
MSK QINGDAO Normal Normal Normal
DALIAN Normal Normal Normal
TIANJIN 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 Shortage
DACHANBAY Normal Normal Shortage
SHEKOU Normal Normal Shortage
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 Normal Shortage Shortage
SHANGHAI Normal Normal Normal
SHEKOU Shortage Shortage Normal
NINGBO Normal Normal Normal
CMA QINGDAO Normal Normal Normal
SHANGHAI Normal Normal Normal
NINGBO Normal Normal Normal
XINGANG Normal Normal Normal
YANTIAN Normal Normal Normal
XIAMEN Normal Normal Normal
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 Shortage Normal
SHEKOU Normal Shortage Normal

 

Air

Central China to USA and Europe 

  • From SHA to Europe, the rates have dropped slightly this week. From SHA to the US, rates have dropped significantly as the US market is slower this week. 
  • From NGB to Europe, rates have decreased slightly. However, rates have remained the same to the US this week. 

North China to USA and Europe 

  • Hot weather will affect loading capacity at TSN in August. Rates remain the same as last week to the USA. 
    • Korean Airlines and Asiana Airlines can provide space for any urgent bookings from TSN airport
    • Terminal warehouses are running on low efficiency due to the Covid-19 outbreak in the Tianjin area. 
  • Due to hot weather conditions and rain, some carriers have cancelled, rescheduled or taken on less volume from PEK to both lanes. Therefore, flight schedules are not reliable at the moment. 
    • Air China’s direct service from PEK to LHR is still waiting to be reopened. However, other indirect services are available from PEK to LHR. 
    • Rates have increased slightly to both lanes and capacity is tight.

South China to USA and Europe 

  • From CAN to Europe and the USA, rates have decreased to both destinations as the market is quieter. 
  • From SZX to Europe and the US, rates are stable. 
  • From XMN to Europe and the USA, rates are stable this week.
USA

Ocean

  • Maersk has shortened its import box dwell time at US ports from 14 days to nine. 
    • This will begin on 8th August with the aim of resolving the backlog of containers at terminals.
    • The move comes to relieve capacity and improve productivity at marine terminals as persistent congestion continues to impact operations at US terminals. 
    • They will transfer containers dwelling for 9 days or more that are customs cleared and have no appointment confirmed for pickup at the terminals. 
    • These will be transferred from terminals to an off-dock facility. 
Germany

Ocean

  • According to Hapag-Lloyd, the workforce strikes at German ports are impacting labour availability at German port terminals.
    • Terminals at Hamburg are seeing an increase in yard utilisation, almost to a critical level
    • A backlog of pier maintenance and low productivity due to labour shortages has increased waiting times for vessels. 
  • Heatwaves have dried up Europe’s inland waterways, increasing low water surcharges on barges
    • Contargo have already imposed low water surcharges on the kaub gauge and will now announce a similar charge for the Duisburg-Ruhrort and Emmerich gauge.
    • The barge operator has warned of poor schedule reliability and ‘departures and arrivals will have to be coordinated on a case-by-case basis’.
    • Contargo may impose surcharges of €85 and €303 per 20ft box, depending on water depth, and €150 to €393 per 40ft.

Air

  • Ramp and warehouse congestion has eased at Frankfurt Airport.
    • German carrier, Lufthansa, labels the airport as ‘Europe’s biggest hub for air cargo traffic’.
    • The carrier is experiencing problems with ground handling, resulting in delays and flight cancellations, but not to the same extent as the beginning of July. 
    • However, Lufthansa have noted that they are expecting a wave of bookings due to the strikes at German seaports as well as a lack of labour at Frankfurt airport. This could lead to worsening delays when transporting shipments on time. 
Benelux

Ocean

  • At the PSA terminal at the Port of Antwerp, labour availability is at a good level.
    • Yard utilisation has increased but is still manageable
  • At the Europe Container Terminals (ECT) at the Port of Rotterdam, labour has been reduced due to the holiday period. 
    • Yard levels are manageable due to a reduction in load and discharge calls
    • Available reefers remain critical
    • The terminal is seeing an improvement in long dwell times for transshipments and import cargo. 
    • Off yard storage is now fully utilised due to customs blocked Russian cargo
  • At the Rotterdam World Gateway Terminal (RWG), the holiday period has also impacted labour availability. 
    • Yard utilisation remains manageable and available reefer plugs are challenging but under control
    • The terminal is not accepting the delivery of empty containers until further notice
UK and Rest of Europe

Road/Rail

  • The UK government is extending their funding to train HGV drivers for another year.
    • The aim is to tackle the ongoing skills shortages in the UK
    • The funding was announced last year as part of the government’s plan to train 4000 new HGV drivers 
    • According to the Department of Transport, between March to May 2022, the DVSA carried out 29,384 HGV tests. This is 54% more than the same period in 2019 before the pandemic. 

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.

August 15th – Austria, Belgium, Croatia, Cyprus, France, Germany*, Greece, Italy, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovenia, Spain

August 20th – Estonia, Hungary

August 29th – Slovakia

 

September 1st – Slovakia

September 2nd – Spain*

September 5th – Luxembourg*

September 6th – Bulgaria, Spain*

September 8th – Malta, Spain*

September 15th – Slovakia, Spain*

September 17th – Spain*

September 20th – Germany*

September 21st – Malta 

September 22nd – Bulgaria 

 

*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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