Zencargo Market Update: 9th October 2023

China

Air

Central China to USA and Europe 

• From SHA to Europe and the US, rates have increased this week. 
  • The market is busy after the Golden Week holiday. 
  • From SHA to the US, more bookings are available for destinations to ORD, JFK and LAX after Golden Week. 
• From NGB to Europe and the US, rates remain the same.
  • The final rate is offered on a case-by-case basis.

North China to USA and Europe:

• From TSN to Europe and the US, rates have increased for Korean Airlines to both destinations. 
  • Rates for Asiana flights have also  increased on these lanes. 
• From PEK to Europe and the US, hot weather is currently causing loading issues. 
  • Major services from PEK to Europe include: Singapore Airlines, Cathay Pacific, Lufthansa, Air China, KLM, Air France, Japan Airlines.
  • Major services from PEK to the US include: Cathay Pacific, Japan Airlines, All Nippon Airways and Eva Air. 
  • Rates are currently at a lower level. 
• From TAO to Europe and the US, space is not tight this week. 
  • Rates will need to be checked on a case-by-case basis. 

South China to USA and Europe:

• From CAN to Europe and the US, rates have decreased compared to last week. 
  • As it is peak season now, rates will increase quite soon. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From SZX to Europe and the US, rates are stable this week. 
  • All shipments will need to be checked with the carrier for rates on a case-by-case basis.
• From XMN to Europe, the market is almost the same compared to the period during Golden Week. 

USA

Ocean

• Many small shippers in the US faced misapplied Demurrage and Detention (D&D) charges during the Covid-19 pandemic.
  • The Federal Maritime Commission (FMC) can not assist if charges were imposed before the Ocean Shipping Reform Act (OSRA) implementation in June 2022.
  • The process of filing a complaint before OSRA was costly and could take over a year to yield results, leaving small shippers with limited options.
  • Even small charges from multiple shipping lines could accumulate into significant amounts for shippers.
  • An investigation by FMC commissioner Rebecca Dye led to the introduction of a more efficient dispute resolution system, but it only applied after the OSRA 2022 enactment.
  • The decision not to allow retroactive filing of charge complaints before OSRA 2022 has left shippers frustrated according to news sources. 

Benelux

Ocean

• Asia-North Europe carriers announced new headhaul FAK rates for November, doubling current spot market rates.
  • Carriers such as Hapag-Lloyd and CMA CGM have announced hikes in rates starting 1st November. 
  • Despite these announcements, Asia-Europe spot rates continue to fall. 
  • Rates are also decreasing on the Asia- Mediterranean lane. 
  • Although more blank sailings have been announced by carriers on both sides of Golden Week, this has not been enough to stem the decline in rates on the Asia – North Europe route. 
  • The speed of rate decline has been severe as spot indices have lost 10% of their value every week since September. 

• December throughput at North Europe’s container ports will see a significant decline due to carriers implementing blanking programs during the Golden Week holiday.
  • Terminal operators may face even tougher times ahead as carriers consider further capacity cuts to support substantial FAK rate hikes starting on November 1.
  • Drewry’s analysis shows that ocean carriers will blank 67 major trade lane sailings over the next five weeks to balance demand and supply. 
  • The Ocean Alliance has been the most aggressive with capacity management, cancelling 23 sailings, followed by THE Alliance with 15 blank sailings and the 2M Alliance with seven.
  • A majority (52%) of blank sailings will affect transpacific eastbound loops, while the Asia-Europe trade lane accounts for only 37%.
  • Several North European container hubs have seen yard utilisation levels drop to 50% or 60%, and further capacity cuts by carriers could prolong lean times for the box port industry.

UK

Road

• After the implementation of the Windsor Framework, hauliers are experiencing delays delivering goods into Northern Ireland from Great Britain. 
  • The Framework aims to create a smooth flow of goods between Great Britain and North Ireland via a two-lane system. It is designed to involve minimal paperwork and no border checks for businesses trading in the UK internal market. 
  • However, hauliers have experienced delays in the first week of implementation due to errors made by their customers. 
  • Issues with paperwork has ultimately affected hauliers, causing delays and associated costs.

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.

Oct 9 – Spain*

Oct 10 – Austria*

Oct 12 – Spain

Oct 23 – Hungary

Oct 26 – Austria

Oct 28 – Cyprus, Czech Republic, Greece

Oct 30 – Ireland (Eire)

Oct 31 – Germany*, Slovenia

Nov 1 – Austria, Belgium, Croatia, France, Germany*, Hungary, Italy, Lithuania, Luxembourg, Poland, Portugal, Slovakia, Slovenia, Spain

Nov 2 – Belgium*, Lithuania

Nov 4 – Finland, Sweden

Nov 9 – Spain*

Nov 11 – Austria*, Belgium, France, Poland

Nov 15 – Austria*, Belgium*

Nov 17 Friday Czech Republic, Slovakia

Nov 18 – Croatia, Latvia

Nov 20 – Latvia

Nov 22 – Germany*

Nov 30 – Romania

*Not in all regions