Zencargo Market Update: 9th January

China

Ocean

• Chinese export container rates have dropped 27% since mid-November. 
  • The China Containerized Freight Index shows that trade to Europe has fallen by 34% whilst trade to US West and East coast has fallen by 26% and 27% respectively. 
  • These figures come at a crucial time in the lead up to Chinese New Year where demand generally peaks. 
• A surge in Covid cases following the rollback of China’s zero Covid policy is threatening port and factory efficiency as infected workers are forced to quarantine. 
  • The impact of this new wave of cases is being reflected in a rise in congestion at the Ports of Shanghai, Ningbo and Qingdao despite the aforementioned drop in demand. 
  • Concerns have also been raised about factory production with some reports from Qingdao stating the factory workforce is at 25% following a spike in cases. 

Air

Central China to USA and Europe 

• From SHA to Europe and the USA,  rates have increased slightly compared with last week and this increase is expected to continue until CNY.  Trucking services to SHA will also stop from next Wednesday. 
• From NGB to Europe and the USA , rates have decreased this week compared to last, with the final rate being provided on a case by case basis. 

North China to USA and Europe 

• From TSN to Europe, rates have remained similar to that of last week however continued fluctuation is expected.
  • Air China, Lufthansa and Singapore airlines can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
  • We recommend booking 3-4 days in advance.
  • Truck LTL (Less Than a Truckload) will be suspended this week. 
• Similar to Europe, rates from TSN to USA continue to fluctuate and  have seen a slight decrease compared to last week. 
  • Japan Airlines, Cathay Pacific and All Nippon Airways can provide spot rates for dense cargo on passenger flights to Europe.
  • Korean Air and Asiana Airlines can provide earlier estimated time of arrivals on their freight flights, with Asiana Airlines providing a competitive rate similar to passenger flights.
  • We recommend booking 5-6 days in advance. 
  • Truck LTL will be suspended this week. 
• From PEK to Europe, rates have remained similar to last week although it is anticipated that they will continue to fluctuate. 
  • For urgent shipments to Europe we advise providing the cargo ready date, reconfirm rate and book 3 to 4 days in advance. 
  • Truck LTL will be suspended this week. 
• From PEK to the USA, rates have decreased compared to last week and it is expected that they will continue to fluctuate. 
  • The availability of service is still lower than usual as flights have continued to be cancelled or rescheduled. 
  • Truck LTL will be suspended this week. 
• From TAO to Europe, rates have decreased compared to last week.
  • ETD for new bookings is the 12th January. 
• From TAO to the USA, rates have decreased this week compared to last week.
  • ETD for new bookings is the 11th January. 
• From CKG to Europe rates have remained stable compared with last week.
• From CKG to the USA rates have risen slightly compared with last week.

South China to USA and Europe 

• From CAN to the USA and Europe rates have increased slightly  since last week as CNY approaches and can be negotiated with carriers on a case-by-case basis. 
• From SZX to Europe and the USA, the market is stable and rates can be negotiated with carriers on a case-by-case basis. 
• From XMN to Europe rates have remained the same compared to last week. Rates can be negotiated with carriers on a case-by-case basis. 
• From XMN to the USA, rates have increased compared to last week. This is due to flight cancellations tightening available space.  Rates can be negotiated with carriers on a case-by-case basis.

USA

Ocean

• The Port of Houston has announced it will impose an import dwell fee starting 1st February. 
  • The fee will be charged in addition to demurrage charges and will be $45 per day per container after the expiration of free time. 
  • The charge is aimed at tackling congestion as volumes have increased due to a shift from West Coast to East Coast ports.
• A new study has found that many shippers are wary of shifting trade volumes back to West Coast ports fearing a return to congestion and potential for further strike action. 
  • Following a volume shift from East to West coast ports  due to congestion in 2022  and ongoing  labour concerns, nearly a third of logistics managers surveyed remain uncertain of returning trade to West coast ports even if a labour deal was finalised.

Benelux

Ocean

• German logistics firm HHLA and Cosco are close to finalising an agreement to buy a stake in a terminal at Hamburg’s port. 
  • The final details are currently still in discussion however sources state that the deal is nearing completion.

UK

Ocean

• The current UK Border Force strike could be extended to major ports such as Dover within weeks.
  • This has the potential to bring UK inbound and outbound freight services to a standstill as Border Force are responsible for paperwork and monitoring of imported and exported goods.
  • Sources have revealed that action at ports has been discussed internally by the union however no action has been confirmed at this stage. 

Road

• Logistics UK has asked the government for support on the ongoing HGV driver shortage.
  • It is estimated that there is a shortfall of 60,000 HGV drivers in the UK.
  • The shortage is attributed to poor working conditions as well as Brezit forcing many drivers off the road as they were required to return to their home nation. 
  • The letter urges the government to add HGV drivers to the Shortage Occupation List in relation to the Skilled Worker Visa allowing for more international drivers.

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.

January  23 – Romania

January  24 – Romania 

February  6 – Ireland

February  8 – Slovenia

February 10 – Malta 

February 16 – Lithuania

February 20 – Luxembourg*

February 21 – Portugal*, Spain* 

February 28 – Spain

*Not in all regions