EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 12

📌Weekly Logistics Highlights:

This week's news has highlighted the progress of logistics in various regions, such as the full operation of Cainiao Logistics Center in Hong Kong, Korean Air's plan to expand international services in summer 2024, and American Airlines steadily increasing flights between China and the United States. 

 Hong Kong, China

🔹It is expected that after the full operation of the Cainiao Logistics Center, the air cargo volume at Hong Kong International Airport will increase by an additional 1.7 million tonnes annually.

The first-ever World Cargo Symposium organized by the International Air Transport Association (IATA) was held in Hong Kong. Mr. Fred Lam, CEO of the Airport Authority Hong Kong, stated during the event that the air cargo volume reached 4.3 million tonnes last year, with a 3% annual increase. Mr. Lam highlighted that to enhance the airport's cargo handling facilities, Cainiao's state-of-the-art logistics center, Cainiao Smart Logistics Park, with a total floor area of 380,000 square meters, has been completed. It is expected that after its full operation, the logistics center will contribute an additional 1.7 million tonnes of air cargo annually to Hong Kong. Additionally, the airport has a fleet ofapproximately 30 refrigerated dollies for handling special cargo.

 Shenzhen, China

🔹Addentax Group Corp. and Dezhong Xinghui Collaborate to Develop AI Logistic System, Facilitating Breakthroughs in Logistics Delivery

The collaboration between Addentax and Dezhong Xinghui is focused on the development of an artificial intelligence ("AI") logistics system. This system aims to optimize vehicle dispatching, monitor inventory in real-time, enable intelligent sorting and delivery, and operate seamlessly. By automating tasks, this initiative significantly reduces labor costs and errors, ultimately enhancing efficiency and quality across logistics operations. Overall, the AI logistics system's optimization functionalities cover all aspects of logistics, promising breakthroughs in delivery services within their respective logistic communities.

🔹First 2 months of 2024 see Shenzhen's export up 53.1%

According to data released by Shenzhen Customs on March 19th,in the first two months of 2024, Shenzhen's total import and export value reached 675.18 billion yuan, an increase of 45% year-on-year (the same below), the highest in history. Among them, exports amounted to 441.44 billion yuan, with a growth of 53.1%, while imports total 233.74 billion yuan, with a growth of 31.9%.

 Guangzhou, China

🔹Xintang apparel industry in Guangdong to build a 1.25-billion project

Recently, a consortium led by Guangzhou Construction Municipal Engineering Company, in conjunction with Guangdong Provincial Institute of Architectural Design and Research and Guangzhou Geological Survey Foundation Engineering Company, successfully won the bid for the survey, design, and construction general contracting project for the demonstration base of intelligent manufacturing of denim clothing in Zengcheng District, with a bid amount of 1.25 billion yuan. With its location and advantages in logistics and industrial agglomeration, the denim clothing industry in Xintang has gained international reputation and is moving towards transformation and upgrading.

 Shanghai, China

🔹Eastar Jet to resume Incheon-Shanghai flights in April

Easter Jet will initially operate the route three times a week starting April 19th, with plans to increase the flights to seven times a week by July. The flight will depart Incheon Airport at 22:30 and arrive at Pudong Airport at 23:30 local time. Departures from Pudong Airport the following day will be at 12:30 a.m., arriving at Incheon Airport at 3:30 a.m. local time.

 Tianjin, China

🔹China's Tianjin Port reports soaring auto exports in Jan-Feb

TIANJIN -- North China's Tianjin Port saw a surge in auto exports in the first two months of 2024, continuing an export boom for Chinese carmakers receiving increased global recognition.Tianjin Port completed 88,000 automobile exports totaling 5.7 billion yuan ($791 million) in January and February this year, with those figures respectively increasing 73.2 percent and 91.8 percent year-on-year, according to Tianjin Customs. Notably, 61,000 electric vehicles were exported, up 74.9 percent year-on-year.

 Qingdao, China

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 Vietnam

🔹Vietnam’s Pacific Airlines Halts Operations In Competitive Market

Pacific Airlines, the low-cost subsidiary of Vietnam Airlines, formerly known as Jetstar Pacific, has temporarily suspended its commercial operations. The airline announced that it is currently undergoing a fleet and route restructuring to improve operational efficiency, resulting in the suspension of certain routes and flights. Reports from VNExpress indicate that Pacific Airlines has returned all of its aircraft to lessors due to financial challenges. To address this, Pacific Airlines is collaborating with Vietnam Airlines to lease new aircraft and optimize resources through initiatives like sharing check-in counters and ground service vehicles. Impacted passengers will be rerouted to flights operated by Vietnam Airlines. Presently, Pacific Airlines' only active route is between Ho Chi Minh City and Singapore, as per data from CAPA - Centre for Aviation and OAG Schedules Analyser. The Aviation Week Network Fleet Discovery database reveals that the airline had been leasing eight Airbus A320s, with the majority owned by Aviation Capital Group. Vietnam Airlines acquired Qantas' minority stake in Jetstar Pacific in 2022, leading to the rebranding of the carrier as Pacific Airlines. Despite being in a rapidly growing aviation market in Southeast Asia, Pacific Airlines has faced competition from market leader Vietjet Air and has also been subject to a price cap imposed by the Transport Ministry. This price cap was revised upward by 5% in March 2024, allowing airlines to sell fares up to certain limits, making the local airline industry highly competitive with low yields.

 South Korea

🔹WestJet Appoints APG as Representative in South Korea

WestJet has appointed APG as its representative in South Korea. Under the agreement, APG, a leading global airline services company, will provide comprehensive sales development, agent helpdesk support and dynamic marketing initiatives in the country. WestJet is preparing to launch flights between Calgary Airport (YYC) and Incheon Airport (ICN) in Seoul, South Korea. Scheduled to take off on 17 May 2024, the Calgary-based airline will operate the seasonal route with thrice weekly flights using Boeing 787-9 Dreamliner aircraft until 27 October 2024.

🔹Korean Air to expand international services for summer 2024

Korean Air will resume services to four cities in China, Europe and South-east Asia, and increase flight frequencies on major routes, for the upcoming summer season. On April 2, the airline will restart its three weekly flights between Seoul Incheon and Zurich, while its Seoul Incheon-Zhangjiajie route will resume from April 23. In addition, on April 24, Korean Air will resume its Seoul Incheon-Zhengzhou services, to operate four flights per week, as well as restart daily flights on the Busan-Bangkok route on April 25.Korean Air will also increase flight frequencies on the Seoul Incheon-Budapest from three to four weekly flights, the Seoul Incheon-Bangkok route from three to four daily flights, and the Seoul Incheon-Manila route from two to three daily flights.

 America

🔹US on stable path to raise flights after agreement

Airlines from China and the US are on a stable path to increase flights between the two countries, recording the biggest jump since the outbreak of the pandemic, amid recent efforts by the Chinese and US governments to increase flights. On Monday, US-based Delta Air Lines said that it would increase the frequency of nonstop services between Shanghai-Pudong and Detroit to daily flights, beginning on May 23.Delta is currently operating daily flights from Shanghai-Pudong to Seattle and three-times-weekly services to Detroit. After the change, Delta will operate two daily flights from Shanghai to its US gateways. 

 Bangladesh

🔹China-Bangladesh Mega Oil Storage Project Commences Commercial Operations

People's Daily Bangkok, March 18th (Reporter Sun Guangyong) On March 16th, a total of 40,000 tons of diesel and 30,000 tons of crude oil, transported through the pipeline of the Bangladesh Single Point Mooring and Double Line Pipeline Project constructed by a Chinese company, have arrived at the Eastern Refinery Limited, a subsidiary of Bangladesh Petroleum Corporation. This marks the official commencement of commercial operations for Bangladesh's first integrated mega oil storage and transportation project, which is a flagship project for realizing the country's national development vision by 2041, and a significant achievement in energy cooperation between China and Bangladesh under the Belt and Road Initiative.The project, which was constructed by China Petroleum Pipeline Bureau with preferential loans provided by the Chinese government and financing from China Export-Import Bank, represents a complete industry chain "going global" with Chinese funding, technology, equipment, and construction capabilities. The construction of this project has also facilitated the overseas expansion of "Made in China," as 95% of the core materials and related equipment required for the project came from China. Simultaneously, it has also promoted the new development of Chinese marine engineering equipment technology. Chinese enterprises have independently developed and overcome core technologies and equipment, breaking foreign monopolies on core technologies and independently completing the project construction. This has filled the technical gap in the installation of the "double-channel single-point mooring system" for Chinese companies and set two world records: "crossing of land and sea directional drilling" and "deep excavation of navigational channels."

 Myanmar

🔹The renewal contract for Myanmar's Yadana and Zawtika energy projects.

Thai energy company PTTEP is reviewing the renewal of contracts for Myanmar's Yadana and Zawtika energy projects. On March 18, 2024, Montri Rawan Chaikul, the CEO of PTTEP, stated that they are considering the renewal of contracts for the Yadana and Zawtika energy projects in Myanmar. As these projects supply 17% of Thailand's domestic power demand and support 11 power plants in the western region of Thailand, the possibility of contract renewal was mentioned. Despite facing criticism for its strong presence in Myanmar, PTTEP continues to monitor the country's energy projects.

🔹Implementing approaches to enhance the relationship between Myanmar and Brazil

The Charge d'Affaires ad interim of the Philippines in Myanmar, Mr. San Yu Kyaw, held a meeting with the Ambassador of the Philippines to Brazil, H.E. Mr. Gilverto Fonseca-Guimaraes De Moura, on the morning of March 18, 2024, at the Philippine Embassy in Myanmar. During the meeting, they discussed ways to strengthen Myanmar-Brazil relations, cooperation between the embassies, enhancing bilateral cooperation, and sharing Brazil's development experiences.

🔹Establishment of Myanmar Digital Media Association

The Ministry of Information in Myanmar organized a coordination meeting of the Organizing Committee of the Myanmar Digital Media Association on March 18, 2024, at 1:00 PM in Yangon, Bahan. The Minister of Information, Mr. Maung Maung Ohn, announced the establishment of the Myanmar Digital Media Association. The Minister of Information stated that due to the increasing use of digital media, including social media, in broadcasting, their aim is to resolve disputes, conflicts, and grievances through negotiations between the parties involved.

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