EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 14

📌Weekly Logistics Highlights:

This week's news has brought attention to several noteworthy developments in the business world. These include the decision by Alibaba to withdraw its Hong Kong initial public offering (IPO) for its logistics arm, the announcement that AliExpress will not be renewing its contract with CJ Logistics of South Korea, and the Myanmar Central Bank's sale of an additional $3 million through an online trading platform. These updates have significant implications for the respective companies and the broader market, warranting careful consideration and analysis.

 Hong Kong, China

🔹Alibaba withdraws Hong Kong IPO for logistics arm

Alibaba, the Chinese e-commerce giant, has withdrawn its planned IPO for logistics arm Cainiao due to setbacks in its company overhaul. The decision comes as Alibaba faces fierce competition from rivals like JD.com and Pinduoduo. Instead of the IPO, Alibaba plans to buy back the remaining equity held by minority shareholders for $3.75 billion. The cancellation aims to support Cainiao's long-term strategic expansion of its global logistics network. This follows Alibaba's cancellation of a planned spin-off of its cloud computing business. As a key player in China's digital sector, Alibaba is considered a barometer of consumer spending in the country. The company's disappointing quarterly results showed a 77% drop in net profit compared to the previous year. Alibaba is listed on the New York and Hong Kong stock exchanges and is headquartered in Hangzhou, China.

 Shenzhen, China

🔹Saudia Cargo expands e-commerce logistics reach with Shenzhen launch

Saudia Cargo, a leading provider of air cargo services, announces its expansion into Shenzhen, China, with the introduction of two weekly flights which began on March 15^th. This strategic move signifies Saudia Cargo’s commitment to enhancing its presence in one of the most pivotal markets, underlining the importance of expansion and growth in China.As a key player in the global logistics industry, Saudia Cargo recognizes the significance of China as a crucial market for its operations. The expansion into Shenzhen is a testament to the company’s dedication to meeting the growing demand for air cargo services in the region. The two weekly flights will operate every Monday and Friday, offering consistent and reliable service to meet the needs of customers in Shenzhen and beyond.

 Guangzhou, China

🔹Recent Bridge Collapses Raise Questions About Modern Shipping

A smaller vessel in Guangzhou, China, collided with a two-lane bridge on February 22, resulting in the death of five individuals. The incident has prompted discussions on the necessity of ships being prepared to drop anchors swiftly during port emergencies and the potential need for tugboats to accompany vessels entering and leaving harbors. However, no conclusive report has been released regarding the Guangzhou incident after one month, and investigations into the Baltimore crash have only just begun.

 Shanghai, China

🔹Hainan Airlines Unveils Direct Route: Brussels to Shanghai Flights Set to Resume June 18th

Starting from June 18th, Hainan Airlines is planning to resume direct flights between Brussels and Shanghai (Pudong), adding to its existing routes connecting Belgium to China, namely Brussels-Beijing and Brussels-Shenzhen. This new initiative will effectively double the number of daily flights operated by Hainan Airlines between Belgium and China. By expanding travel options, this development aims to facilitate stronger cultural connections and promote collaboration between Europe and China.

 Tianjin, China

🔹Int'l cruise ship carrying over 1,100 tourists arrives in China's Tianjin

The Zuiderdam cruise ship, operated by Holland America Line, made its maiden visit to Tianjin International Cruise Home Port in Tianjin, China. With over 1,100 tourists from 30 countries and regions on board, the ship arrived and will stay for two days and one night, allowing passengers to explore Beijing, Tianjin, and Xi'an.Collaborative efforts between the local customs administration, cruise ship agency, and port company enabled the ship's visit, with streamlined passenger clearance procedures implemented. Tianjin International Cruise Home Port, the largest cruise home port in north China, has already welcomed 16 cruise ships and witnessed 50,000 tourist visits this year.Dong Zichen, deputy general manager of Tianjin International Cruise Home Port Co., Ltd., expressed optimism about the recovery of the cruise tourism industry in Tianjin, citing government support policies and increasing demand for cruise tourism. Jiao Deshuai, senior assistant manager at Sinotrans North China Container Company, which is involved in cruise ship agency business, also believes in the rapid development of the cruise tourism industry in China.After its visit to Tianjin, the Zuiderdam cruise ship is scheduled to depart for Hong Kong, having already traveled to Shanghai and Dalian in China.

 Qingdao, China

🔹Collision Between Evergreen Containership and Bulk Carrier Prompts Evacuation and Damage Assessment

Chinese officials released details on a collision between an Evergreen containership and a local bulk carrier. The Qingdao Maritime Affairs Bureau reported that the Ever Lucid (105,000 dwt) was outbound from Qingdao after departing on March 13. The vessel was heading to Shanghai but on the morning of March 14 collided with the bulker Huahai 78 off the port of Qingdao.No one was injured aboard either vessel despite significant damage to the bulker. The vessel, which is 289 feet (88 meters) in length, started taking on water flooding its engine room. The bridge of the vessel was also severely damaged leaving the vessel unable to navigate. The local authorities reported that an immediate evacuation was required of the vessel. The 12 crewmembers were transferred to the Ever Lucid to wait for transfer to shore.

 Vietnam

🔹Vietnam seeing positive export signs in Q1

Hanoi (VNA) – Recovery  of the world economy, including many major export markets of Vietnam, is a positive sign for the Southeast Asian nation’s import and export activities in the coming time.Tran Thanh Hai, deputy head of the Ministry of Industry and Trade (MoIT)’s Foreign Trade Agency, said that total export-import turnover hit 178.04 billion USD in the first quarter of this year, up 15.5% year-on-year, resulting in a trade surplus of 8.08 billion USD.Exports performed particularly well, with an estimated value of 93.06 billion USD, reflecting a 17% year-on-year growth, while imports reached 84.98 billion USD, representing a 13.9% increase.

 South Korea

🔹AliExpress to Not Renew Contract with CJ Logistics of S Korea

AliExpress will not renew its contract with South Korea's CJ Logistics, according to market sources. Meanwhile, the company plans to select a local logistics company to sign a one-year delivery contract through an open tender.CJ Logistics is nevertheless said to still be a bidder for the tender, along with Lotte Global Logistics and Hanjin. Shares of CJ Logistics are now crashing 9.2%.

 America

🔹North America Freight and Logistics Industry Set for Significant Growth, Market to Reach $1.89 Trillion by 2029

Dublin, March 26, 2024 (GLOBE NEWSWIRE) - areport has been added to ResearchAndMarkets.com's offering.The North America Freight and Logistics industry is undergoing substantial growth, with projections indicating a value of $1.89 trillion by the end of 2029. Factors contributing to this expansion include a heightened demand for goods from North American countries in emerging economies such as Indonesia, Thailand, and India. The year-on-year increase in the North American logistics market was reported at 5.31% in 2022, demonstrating the industry's robust state and potential for future growth.

 Bangladesh

🔹Bangladesh plans mega road network to become South Asia's trade hub

The Roads and Highways Department is working on a strategic plan to improve connectivity between economic zones and land ports via interconnected road corridors.The initiative will streamline trade logistics and reduce transportation costs, which is currently the highest in the region, the proposal points out.The multimodal connectivity plan aims to facilitate cross-border trade and develop Bangladesh into a sub-regional transport and transshipment hub with wider access to neighbours in South and Southeast Asia, in line with other regional connectivity plans.The World Bank will provide Tk76 crore for a Tk110.75 crore technical assistance programme, designed and proposed by the RHD to identify key projects for this mega plan by 2027, said planning ministry.

 Myanmar

🔹Myanmar Central Bank sells additional $3 million through online trading platform

On March 29, 2024, an additional $3 million was sold by the Central Bank of Myanmar to exporters and importers through an online trading platform.
According to an announcement by the Central Bank of Myanmar, on February 2, 5 million dollars and 50 million baht were given to import and export companies through an online trading platform, on March 5, 7 million yuan and 12 million baht, on March 9, 5 million baht, and on March 14. $5 million, 5 million yuan, and 50 million baht were sold on March 22.The market exchange rate on March 29, 2024 is 3,850 kyat per dollar, 525 kyat per yuan, and 106 kyat per baht.

🔹Myanmar Port Authority, 157 ships to enter Yangon Port in 3 months in 2024

The Myanmar Port Authority said that a total of 157 ships entered Yangon Port from January to March 2024.
Looking at the monthly port arrival status in 2024, 49 ships were recorded in January, 53 ships in February, and 55 ships in March.
Myanmar

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