EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 15

📌Weekly Logistics Highlights:

This week's news has highlighted the progress of logistics in various regions, such Saudia Cargo expands e-commerce logistics reach with Shenzhen launch,South China's Guangdong province unveiled measures to support Guangzhou as to build international hubs for cross-border e-commerce, Korean Air, Jeju Air to expand routes to China,and Myanmar-Thailand border conflict causes industrial and economic losses...

 Hong Kong, China

🔹DP World is reportedly eyeing an acquisition of Hong Kong-based Cargo Services Far East

UAE-based port operator DP World is reportedly finalizing the acquisition of Hong Kong-based logistics firm Cargo Services Far East, Bloomberg reported on Friday, citing sources with knowledge of the matter. The potential acquisition could be valued between USD 300 mn and USD 400 mn, with the move set to expand DP World’s Asian footprint.

 Shenzhen, China

🔹Hainan Airlines Resumes Shenzhen – Vienna Direct Flights

Vienna Airport announced that Hainan Airlines, the largest privately owned airline in the People’s Republic of China, will once again link Vienna and the high-tech metropolis of Shenzhen as of 29 May 2024.This route re-establishes a crucial link between China and Austria, highlighting China’s critical role in Vienna Airport’s market strategy. The flights will be operational throughout the year, offering services twice a week.

🔹Saudia Cargo expands e-commerce logistics reach with Shenzhen launch
Saudia Cargo boosts e-commerce logistics with Shenzhen launch, tapping into the growing cross-border e-commerce trade in the region.Saudia Cargo has announced its expansion into Shenzhen, China, with the launch of two weekly flights on March 15th. This strategic move highlights the importance of expansion and growth in China and demonstrates Saudia Cargo's commitment to enhancing its presence in one of the most pivotal markets. The airline company has expanded its operations into Shenzhen, a significant hub for e-commerce. This expansion aligns with the company's proactive approach to meeting the changing demands of the global logistics industry.

 Guangzhou, China

🔹South China's Guangdong province unveiled measures to support Guangzhou as to build international hubs for cross-border e-commerce.

The plan, entitled "Opinions on Implementing the 'Five External Linkages' to Promote High-standard Opening-up", outlined comprehensive steps to propel the province to the forefront of the global e-commerce landscape with a goal to exceed 1 trillion yuan ($138.24 billion) in annual cross-border e-commerce imports and exports.Under the new plan, Guangdong will throw its weight behind Guangzhou and Shenzhen to transform them into international hubs for cross-border e-commerce by leveraging the province's strategic location, advanced infrastructure and robust logistics network to facilitate seamless trade flows across international borders.

 Shanghai, China

🔹China Eastern Airlines to launch direct flight between Shanghai and Saudi Arabia's capital

China Eastern Airlines will launch direct flights between Shanghai and Saudi Arabia's capital Riyadh on April 27, an important extension of the flight network in the Middle East by the Shanghai-based carrier, according to official sources.The Shanghai-Riyadh flights will be operated every Monday, Thursday and Saturday, while the Riyadh-Shanghai flights will be available every Monday, Thursday and Saturday as well, according to the official WeChat account of the Foreign Affairs Office of Shanghai Municipal People's Government.The launch of the new flight will offer travelers with more diversified trip options, and it also helps meet the growing traveling demand between China and Saudi Arabia.

 Tianjin, China

🔹China's Tianjin Port posts steady container throughput growth in Q1

TIANJIN - North China's Tianjin Port handled over 5.41 million twenty-foot equivalent units (TEUs) of containers in the first quarter of this year, up 7.2 percent year-on-year, setting a new record, the port authorities said.Tianjin Port saw its cargo throughput reach 118 million tons in the first three months of 2024, up 3.2 percent year-on-year, according to the Tianjin Port Group.

 Qingdao, China

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 Vietnam

🔹Vietnam Airlines signs deals totalling US$450 million with Chinese partners

The national flag carrier Vietnam Airlines signed memoranda of understanding (MoUs) on cooperation with Chinese partners, with a total value of nearly US$450 million, within the framework of National Assembly Chairman Vuong Dinh Hue’s official visit to China from April 7-12.

 South Korea

🔹Korean Air, Jeju Air to expand routes to China

Korean Air and Jeju Air are set to expand their number of flights to the Greater China region in response to the burgeoning tourism demand. This underscores the airlines’ commitment to reviving the travel and tourism sector, which is starting to recover following a Covid-19 pandemic-induced slump.Korean Air announced that it will operate thrice-weekly chartered flights to Taichung, one of Taiwan’s top three cities, starting from May 2nd to June 29th, 2024. The schedule is set for Tuesdays, Thursdays, and Saturdays.Meanwhile, Jeju Air is ramping up its operations with new routes to China, marking its re-entry into the Chinese market. Starting from April 24th, 2024, the carrier will launch flights from Jeju to Beijing Daxing Airport four times a week (Monday, Wednesday, Friday, and Sunday) and from Muan to Zhangjiajie four times a week (Wednesday, Thursday, Saturday, and Sunday). 

 America

🔹Over 1,300 layoffs hit logistics companies across US

Layoffs continue across the freight and logistics industry, with companies in Florida, Georgia, Illinois, Michigan and Texas announcing job reductions and facility closures over the past two weeks.Global cargo handler Swissport Cargo Services recently announced it is laying off 235 workers at a cargo handling operation in Atlanta.The layoffs, which are related to losing a contract with e-commerce giant Amazon, are expected to be finalized by May 22.Amazon is working with incoming vendors to identify opportunities for impacted workers.

 Bangladesh

🔹ADB forecasts 6.1% growth for Bangladesh in FY2024

The Asian Development Bank has forecast a GDP growth rate of 6.1 percent for Bangladesh in the 2023-24 fiscal year.In its Asian Development Outlook for April, released on Thursday, it noted that growth had slowed to 5.8 percent in FY2023 amid monetary tightening in advanced economies, lowered external demand, and a jump in inflation. But ADB expects the economy to make a slight turnaround in FY 2024.The ADB also projected the current account moving into surplus in FY2024 and FY2024 as the trade deficit narrows and remittances rise.

 Myanmar

🔹Myanmar-Thailand border conflict causes industrial and economic losses

The Karen National Liberation Army (KNLA) and the People's Defense Forces (PDF) control major bases in the Thai border area, with government forces on the defensive. Anti-government independent media and social networks called for the occupation of major cities, but the junta failed to respond. Major foreign news media, including Reuters, the BBC and The Diplomat, also reported the fall of a base in the border area. Myanmar's military junta has asked the Thai government for support, but Thai Prime Minister Sretha Thawisin said the army was on the defensive although it remained strong and called for a peaceful alternative. If the disruption at Myawaddy crossing is prolonged, the supply of daily necessities and manufacturing raw materials from Thailand will decrease. Industrial and economic losses, as well as livelihood instability, are likely to increase. Myawaddy Bank, which is responsible for border trade settlement, has not yet disclosed its official status, but has implemented suspension measures, including evacuation measures. In particular, Korean manufacturing companies and local K-Beauty companies are purchasing raw materials and selling inventory from Thailand, and consumer goods distribution companies are expected to face management difficulties. 

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