EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 17

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹A delegation representing some of Indonesia's top companies is pushing to utilise Hong Kong as a hub for family businesses

During a meeting between the Employers' Association of Indonesia and city leader John Lee Ka-chiu, the scale of interest in enhancing trade and investment cooperation between Indonesia and Hong Kong was revealed. The association expressed the need to improve bilateral ties and create more opportunities for Indonesian businesses to access the Hong Kong and mainland Chinese markets. The association, which facilitates strategic business cooperation, operates across 34 provincial and 269 district boards in Indonesia.

🔹Hong Kong International Airport reports remarkable growth in passenger and cargo traffic for March 2024

In March 2024, Hong Kong International Airport (HKIA) experienced a substantial increase in passenger and cargo traffic. The airport welcomed 4.36 million passengers, a year-on-year rise of 56.7%, and witnessed 29,840 flight movements, a 48.2% increase. This surge was partly attributed to the extended Easter holidays, with routes to Southeast Asia, Mainland China, and Japan showing notable growth.Cargo throughput also saw a significant increase of 15.1%, reaching 428,000 tonnes. This continued the trend of double-digit growth observed since the beginning of the year. Export traffic, particularly to and from North America, Europe, and the Middle East, was the driving force behind this growth.For the first quarter of 2024, HKIA handled 12.7 million passengers, marking an impressive 81.7% increase compared to the previous year. The airport also experienced significant growth in flight movements and cargo volume.

 Shenzhen, China

🔹Shenzhen Port Group and Cosco Shipping have inked MoU to deepen cooperation on shipping, logistics and automobile exports

The collaboration between the two parties aims to enhance automobile transport service capabilities and establish Shenzhen as a hub ro-ro port for efficient exports of China-made automobiles. This partnership also seeks to improve Shenzhen's competitiveness in the international shipping market.As part of Shenzhen's program to promote automobile exports, efforts include the introduction of new ro-ro services, subsidies for acquiring new ro-ro vessels, and attracting more shipping lines to dock at Shenzhen port for automobile transportation. In the first quarter, Xiaomo port, the primary automobile export port in Shenzhen, exported 14,415 units of new-energy vehicles, accounting for 72% of the total automobile export volume in 2023.

 Guangzhou, China

🔹CMA CGM Air Cargo to expand Pacific operations with two new B777F

This expansion marks the beginning of a fleet enhancement planned for 2024-2026. In 2025, CMA CGM Air Cargo will receive another B777-200F, and in the following year, eight Airbus A350Fs will join the fleet. These new aircraft will supplement the current fleet, which includes B777Fs and three A330Fs, all based at Paris-Charles de Gaulle Airport. The B777Fs currently operate five weekly flights to Hong Kong and four to Shanghai between Europe and China, while the A330Fs handle weekly flights between Paris, Mumbai, and Guangzhou.

 Shanghai, China

🔹Shanghai Port and Lianyungang Port strengthen partnership

The two ports officially launched Xinyi-Lianyungang-Shanghai multimodal transportation to greatly improve container transport efficiency. Shanghai port and Lianyungang port have both set up container companies jointly to provide high-quality logistics services for Yangtze river delta region.Shanghai Haitong International Automobile Terminal and Jiangsu Lianyungang Port also entered into an investment intent letter to establish ro-ro joint venture company for opening up new ro-ro express services and stabilizing the automobile export logistics.

 Tianjin, China

🔹Cargo flights from Zhengzhou to the Philippines launched

On April 9, a B737 all-cargo plane operated by Tianjin Air Cargo arrived at Zhengzhou Xinzheng International Airport. Loaded with cross-border e-commerce cargo, it left Zhengzhou for Clark International Airport at 9: 00 pm on the same day, marking the official launch of the air freight route from Zhengzhou to the Philippines by Tianjin Air Cargo.Through charter, the route is operated by China Logistics Group International Express Supply Chain Management Co., Ltd., which mainly transports domestic packages, fresh products and cross-border e-commerce cargo. Each round trip could carry over 30 tons of cargo. Currently, 2 round trips are scheduled per week. The opening of this route will boost the featured products trading between Central China and the RCEP member countries, and help domestic competitive industries expand their overseas business in the ASEAN countries.

 Qingdao, China

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 Vietnam

🔹Lao minister seeks Vietnamese tech solutions in logistics

Lao Minister of Industry and Commerce, Malaithong Kommasith, visited FSI Investment and Trading Technology Development JSC (FSI) to explore technology solutions from Vietnam that could support Laos' digital transformation in the logistics sector. The aim is to enhance economic and trade cooperation between the two countries.FSI presented its comprehensive ecosystem of over 50 digital solutions for the logistics sector, highlighting their advantages. With over 2,330km of shared border and numerous border gates, border trade plays a vital role in the bilateral economic relationship, accounting for a significant portion of the total trade value.Both countries have agreed to adopt information technology in customs procedures and statistics collection under a bilateral trade agreement signed in April 2024. This is expected to reduce processing times, lower business expenses, and increase transparency, thereby improving logistics efficiency and facilitating trade between Vietnam and Laos.

 South Korea

🔹CJ Logistics has decided to postpone the increase in general delivery rates for convenience stores

CJ Korea Express has announced a delay in the planned increase in general delivery fares at convenience stores. The decision was made in consideration of the public burden, despite the company facing rising costs such as oil prices and minimum wages. The proposed increase of 50 won in the unit price of delivery, which was previously discussed with convenience store companies, will not immediately impact the final delivery cost paid by consumers.Initially, CJ Korea Express had planned to raise the general delivery fare by 50 won from the beginning of the following month, after consulting with convenience stores. This increase would have resulted in a rise of 100 won to 400 won in general delivery prices for GS25, CU, and E-Mart 24, which have contracts with CJ Korea Express. However, with the decision to delay the fare increase, the delivery unit prices for these convenience stores will remain unchanged for the time being.

 America

🔹CCPIT Criticizes US Investigation into China's Industries, Plans Legal Defense to Protect Chinese Companies

The China Council for the Promotion of International Trade (CCPIT) criticized the US Section 301 investigation into China's maritime, logistics, and shipbuilding industries and plans to defend Chinese companies legally. Observers consider the investigation invalid and detrimental to the US itself. The investigation falls outside the framework of the World Trade Organization (WTO), making it illegal and unilateral. China's sectors have contributed to global trade through innovation and competition. US research attributes challenges in its own sectors to lack of competitiveness, not China's actions. CCPIT and the China Chamber of International Commerce urge the US to respect market rules and fair competition. CCPIT will organize companies to defend Chinese interests in US hearings. The investigation is based on a petition alleging China's unfair practices. Chinese experts argue that no country can dominate the entire industry chain, and US attempts harm global industry. Chinese authorities call for correcting actions and avoiding manipulation during the election year. The Biden administration reportedly seeks to triple tariffs under the pretext of overcapacity, seen as suppressing China and disregarding WTO rules. Evidence-based dialogue is crucial for addressing overcapacity and fostering understanding.

 Bangladesh

🔹Bangladesh can woo more investment from Qatar

Business leaders in Bangladesh see potential for attracting more investment from Qatar, despite the bilateral trade heavily favoring Qatar. The trade between the two countries is largely dependent on liquefied natural gas (LNG), fertilizers, and petrochemical products. Bangladesh's exports to Qatar were significantly lower than its imports in the last fiscal year. Due to Qatar's small consumer market, there is limited opportunity to expand the export of consumer goods. Business leaders suggest focusing on attracting Qatari investment to Bangladesh, as Qatar's national economy relies on efficient investments outside the country. During the visit of Qatar's Amir, several agreements and memorandums of understanding are expected to be signed between the two countries, covering areas such as taxation, legal cooperation, maritime transport, investment protection, and more. Business leaders emphasize the potential for investment in sectors like energy, banking, construction, logistics, and the cold chain. They believe that facilitating business processes and offering investment opportunities will enhance bilateral trade between Bangladesh and Qatar.

 Myanmar

🔹India-Myanmar border gate bridge NO.2 scheduled to close
According to local news, the Indo-Myanmar border gate bridge No. 2 on the border between India and Myanmar is scheduled to close from May 1, 2024.The Assam Rifles are said to be monitoring the situation and security has been strengthened in the Indo-Myanmar border area.Chinju residents say they are worried about rising product prices due to the bridge closure.

🔹Myanmar Vice President Henry Yan Thio resigns due to health concerns

According to an announcement from the National Management Committee on April 22, 2024, the request for Myanmar Vice President Henry Van Thio to resign due to health issues has been approved in accordance with Article 419 of the Constitution.

🔹Myanmar's central bank plans to sell 14 million baht through online trading platform
It is said that on April 23, 2024, the Central Bank of Myanmar plans to sell 14 million baht to import and export companies 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 distributed 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 was sold, 5 million yuan and 50 million baht were sold on March 22, and $3 million was sold on March 28.
The Central Bank of Myanmar is conducting random on-site inspections to stabilize the exchange rate in the foreign exchange market and has temporarily suspended and canceled business licenses in accordance with Article 35 of the Foreign Exchange Management Act.The Central Bank of Myanmar has taken action against 48 companies that violated the Foreign Exchange Management Act regulations from March 6, 2024 to the present.

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