EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 08

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹 Selection of Hong Kong for International Headquarters and Research Center by Chinese AI Logistics Firm Westwell

Westwell, a Chinese AI logistics firm, has chosen Hong Kong as the location for its international headquarters and research center. This decision is based on Hong Kong's strategic positioning, robust infrastructure, and status as a global financial hub. Westwell intends to collaborate with local universities and research institutes to accelerate the development of AI and autonomous driving technology.

🔹 Hong Kong's Preparation to Become a Leading International Maritime Center

Hong Kong is gearing up to become a leading international maritime center by introducing liquefied natural gas (LNG) bunkering for ocean vessels. Lam Sai Hung, Hong Kong's Secretary for Transport and Logistics, emphasizes the city's advanced preparations for this eco-friendly shift, highlighting ongoing efforts to spearhead LNG bunkering initiatives.

  Shenzhen, China

🔹 Acquisition of Project Stakes in China by Shenzhen International Holdings Ltd

Shenzhen International Holdings Ltd has announced its plans to acquire stakes in two logistics infrastructure projects in China, representing a significant investment of approximately $572 million. This move underscores the company's commitment to bolstering its presence in the logistics sector.

 Guangzhou, China

🔹 Disruption Caused by the Rise of Fast-Fashion Retailers in the Global Air Cargo Industry

The rapid ascent of fast-fashion e-commerce retailers such as Shein and Temu is disrupting the global air cargo industry. These companies are increasingly competing for limited air-cargo space to meet consumer demand for rapid deliveries. This trend underscores the evolving dynamics of e-commerce logistics and its impact on global trade.

🔹 Incident Involving a Barge Collision with a Bridge in Guangzhou

In an unfortunate incident, a Chinese container barge collided with a bridge over the Pearl River in Guangzhou. This collision resulted in vehicles plunging into the water below and caused a section of the bridge to collapse.

 Shanghai, China

🔹 Shanghai Designated as New Global Gateway for LCL Shipments by Maersk

Maersk, the world's leading shipping and logistics company, announces Shanghai as its new global gateway for Less-than-Container-Load (LCL) shipments. This decision signifies a significant milestone in the industry, reflecting Shanghai's emerging role as a crucial hub for international trade.

🔹 Initiation of Construction for Yum China's Supply Chain Management Center in Shanghai

Yum China Holdings, Inc. commences the construction of its largest greenfield supply chain management center in Shanghai's Jiading district. This development underscores the company's commitment to enhancing its logistical capabilities.

 Tianjin, China

🔹 Partnership between Tianjin Port Logistics Development Co Ltd and DB Schenker

Tianjin Port Logistics Development Co Ltd partners with German freight forwarder DB Schenker to provide bonded area-to-port trucking services. This collaboration further solidifies Tianjin's position as a key logistics hub.

 Qingdao, China

 Vietnam

🔹 Challenges Posed by High Logistics Costs to Vietnam's Agricultural Exports

High logistics costs pose significant challenges to Vietnam's agricultural exports, with transportation expenses comprising a substantial portion of overall logistics costs. Rising freight rates and regulatory changes continue to impact the country's seaport and logistics sector.

🔹 Headwinds Faced by Vietnam's Seaport and Logistics Sector in 2024

Vietnam's seaport and logistics sector are likely to navigate headwinds in 2024 due to a rise in demand for import and export, coupled with rising shipping fees and new regulations on seaport service charges.

 South Korea

🔹 Investment by Dutch Pension Investor APG in Korea Logistics Fund

Dutch pension investor APG commits $400 million to a logistics fund in Korea, citing the country's potential for growth in the logistics sector. This investment underscores the attractiveness of South Korea's logistics market.

🔹 Establishment of Logistics Center for Crocs by CJ Logistics

CJ Logistics announces the establishment of a global logistics center for the renowned shoe brand Crocs in Icheon, Gyeonggi Province. This development enhances the company's logistical capabilities in South Korea.

 America

🔹 Expansion of Operations by Logistics Players Amidst Increased US-Mexico Traffic

North American logistics providers are expanding their operations in response to heightened cross-border traffic between the US and Mexico. Ryder System, for instance, has recently opened a new warehouse in Laredo and completed the expansion of a drayage yard in Nuevo Laredo, underscoring the industry's growth momentum.

🔹 J.B. Hunt's Strategic Focus on Intermodal Trade and Impacts of Sanctions on Russia

Despite last year's downturn in intermodal business, J.B. Hunt remains resilient and is increasing its involvement in truck-rail operations. A new agreement with retail giant Walmart is set to fuel the expansion of J.B. Hunt's intermodal pipeline. Meanwhile, the effectiveness of sanctions on Russia remains under scrutiny, influencing trade dynamics in the region.

 Bangladesh

🔹 Inauguration of Bangladesh's First Logistics Policy by the Prime Minister's Office

The Prime Minister's Office of Bangladesh has launched the country's inaugural logistics policy, marking a significant step towards revitalizing the sector. The policy aims to enhance efficiency, reduce bottlenecks, and foster sustainable growth in the industry. However, stakeholders have expressed concerns regarding the policy's clarity, bureaucratic hurdles, and the necessity for robust implementation mechanisms.

 Myanmar

🔹 Central Bank of Myanmar's Actions in the Foreign Exchange Market

The Central Bank of Myanmar has undertaken measures in the foreign exchange market, including the sale of additional funds in both US dollars and Thai baht. These actions demonstrate efforts to manage currency exchange rates and stabilize the financial market amid prevailing economic challenges. Additionally, the bank's actions aim to address liquidity concerns and ensure the smooth functioning of the foreign exchange market.

🔹 Diplomatic Engagements and Economic Reforms in Myanmar

Myanmar's Minister of Foreign Affairs met with the Belarusian Ambassador to discuss strengthening bilateral relations, supporting Belarusian scholarships for Myanmar students, and revitalizing trade ties. Additionally, the Ministry of Commerce issued warnings against spreading false rumors about export proceeds, highlighting ongoing efforts to maintain market stability. These diplomatic engagements reflect Myanmar's commitment to fostering international cooperation and economic reform initiatives.

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