EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 19

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹Hong Kong’s Greater Bay Airlines to suspend flights to Singapore next month, announcing cuts 2 weeks after launching service

Greater Bay Airlines says it will suspend regular flights to Singapore from June 1 for commercial reasons and after assessing latest market conditions.Carrier announced in February it would launch new route to city state from April 26, with one flight scheduled each dayHong Kong's Greater Bay Airlines will suspend its flights to Singapore next month, announcing the cuts just two weeks after launching the service.

 Shenzhen, China

🔹Logistics property: Chinese cross-border e-commerce firms fuel demand, investment prospects in Greater Bay Area

Five bay area cities - Guangzhou, Shenzhen, Dongguan, Foshan and Huizhou - recorded net absorption of 2.35 million square metres of warehouse space in 2023, accounting for 32 per cent of the net absorption across 24 tracked cities in China, according to JLL. A key gauge of market performance, net absorption equals the amount of space that gets occupied during a specific time period minus the amount that becomes vacant.

 Guangzhou, China

🔹China-Europe Railway Express exports through Guangzhou International Port exceed 3.7 bn yuan in first four months

In the first four months of this year, Guangzhou Railway Customs supervised the operation of 141 export trains from Guangzhou International Port. They transported 15,100 containers, marking a 15.94% increase year-on-year. The total value of goods reached 3.738 billion yuan, up by 7.85% compared to the same period last year.

 Shanghai, China

🔹Sixth Plenary Session of the Hong Kong/Shanghai Co-operation Conference strengthened cooperation between Hong Kong and Shanghai

Chief Executive John Lee and Shanghai Mayor Gong Zheng led delegations from the Hong Kong Special Administrative Region and Shanghai in the Sixth Plenary Session of the Hong Kong/Shanghai Co-operation Conference in Hong Kong.The conference has received significant attention and support from both the central government and the Shanghai Municipal Government, with increasing exchanges between Hong Kong and Shanghai since its inception in 2003.Hong Kong has become one of Shanghai's major export markets and largest sources of foreign investment, solidifying their economic ties.The plenary session marks an important milestone in Hong Kong-Shanghai cooperation, providing a clear direction for future collaboration and expanding cooperation in various fields.Hong Kong aims to leverage its advantages, including strong support from the mainland and its global connections under the "one country, two systems" framework, to deepen cooperation with Shanghai.The two sides reached a consensus on 15 areas of cooperation and signed a cooperation memorandum.The collaboration areas include Belt & Road development, business investment, innovation and technology, digital economy, finance, civil aviation, maritime transport, logistics, cultural and creative industries, education...

 Tianjin, China

🔹Train service grows as preferred mode of cargo transportation

A freight train loaded with containers of goods departed from Shijiazhuang, Hebei province, to Belgrade, Serbia, in late March, marking the first direct rail line connecting the Beijing-Tianjin-Hebei region with Serbia.The China-Europe Express Rail transport service has witnessed tremendous expansion since its launch in 2011 and has provided transport and logistics support for Belt and Road cooperation over the years.The China-Europe Express Rail served as a safe and reliable rail line linking Asia and Europe, transporting over 50,000 types of goods, including automobiles, spare parts, clothing, cereals, wine, coffee beans and timber. Now grows as preferred mode of cargo transportation.

 Qingdao, China

🔹Qingdao port sees cargo and container volume growth in Q1

Cargo throughput at the north Chinese port of Qingdao was 172 million tons in the first quarter, a growth rate of 6.9% year-on-year, according to Seatrade Maritime.Container volume at the port was 7.67 million teu, an increase of 11.5% year-on-year. Container cargo volume on South America and North America trades both achieved double-digit growth in Q1.According to Qingdao port, it has received four new international container services this year to East America, Europe and Southeast Asia to ease capacity shortage from foreign trading.With the continued optimisation of port handling efficiency, large-size containership operation number at Qingdao port up 21.2% during January and April this year.

 Vietnam

🔹Green logistics helps firms obtain sustainable, comprehensive development: Insiders

Experts stress that adopting green logistics practices in the logistics industry can help businesses meet environmental criteria, improve competitiveness, and achieve sustainable growth.Failure to embrace green logistics standards may result in challenges and eventual exclusion from domestic and global business activities, trade, and import-export operations.Ngo Khac Le, Deputy Secretary General of the Vietnam Logistics Business Association, emphasizes the significance of understanding the essence and role of green logistics in promoting comprehensive and sustainable growth in Vietnam.Limited awareness and understanding of green logistics requirements, particularly among small- and medium-sized enterprises (SMEs), pose a challenge, making it crucial for businesses to choose suitable green logistics solutions based on their specific needs and industry.Le highlights the need for continuous communication campaigns and government support to drive the implementation of green logistics initiatives.He suggests enhancing the efficiency of inland waterways and maritime transportation to increase cargo volume and reduce vehicle emissions.Domestic enterprises are encouraged to accelerate innovation, creativity, and digital transformation efforts while adopting green and smart logistics practices for import and export activities.The promotion of green logistics is a global trend, extending beyond Vietnam, and domestic enterprises, especially SMEs, should proactively enhance their competitiveness and establish reputable brands within the international business community.By doing so, they can contribute to more sustainable and comprehensive development in the long term.Overall, the adoption of green logistics practices is not only essential for meeting environmental goals but also for ensuring long-term business success and contributing to a more sustainable future.

 South Korea

🔹CJ Logistics Q1 net rises 14.5 pct on delivery deals

SEOUL, May 10 (Yonhap) -- CJ Logistics Corp., South Korea's biggest logistics company, said Friday its first-quarter net profit rose 14.5 percent from a year earlier helped by increased last-mile deliveries and contract logistics (CL) deals.For the three months ended in March, net profit rose to 55.43 billion won (US$40 million) from 48.42 billion won during the same period of last year, the company said in a statement."On top of increased last-mile delivery volumes, the company's CL deals with corporate customers also boosted the quarterly bottom line," a company spokesperson said.Operating profit climbed 10 percent to 109.36 billion won in the first quarter from 99.03 billion won a year ago.Sales were up 4 percent to 2.921 trillion won from 2.807 trillion won.

🔹LOTTE Global Logistics Joins Hands with 3rd Largest Global Shipping Company, CMA CGM

LOTTE Global Logistics announced on the 29th that it has signed a strategic partnership (MOU) with the French shipping company CMA CGM, the world's 3rd largest shipping company.At the business agreement ceremony held at the headquarters of LOTTE Global Logistics in Jung-gu, Seoul, Kang Byong-Ku, CEO of LOTTE Global Logistics, and Bo Wegener, CEO of CMA CGM APAC Asia Regional Office, attended and signed the agreement.Through this agreement, the two companies have agreed to provide competitive freight rates and space on vessels (ship space for loading cargo) for container cargo handled by LOTTE Global Logistics, comprehensive service cooperation including the Americas, Europe, and Asia, actively collaborate in ESG areas such as decarbonization.

 America

🔹US Inbound Cargo Volumes Jump 19%, Outpacing Expectations

US Ports are reeling in more imported goods than expected yet again in 2024, handling 1.93 million 20-foot equivalent units (TEUs) in March, according to data from the Global Port Tracker report.This represents an 18.7 percent year-over-year jump from March 2023 totals, when Asian exports were slow after Lunar New Year shut downs and also 7.2 percent ahead of previous projected totals of 1.8 million TEUs.

 Bangladesh

🔹Bangladesh Exports Are Clogging India’s Air Cargo Capacity

Bangladeshi cargo is slamming Indian airports in what has become a concern for local businesses across the world’s most populous country—while also delivering yet another headwind for India’s already contracting textile economy as exporters fight for air capacity.According to a report from Indian newspaper The Hindu Business Line, tons of garments out of Bangladesh are being shipped out via Indira Gandhi International (IGI) airport in Delhi, cornering space in aircraft bound for Europe and the U.S.

 Myanmar

🔹The Miyawadi Township Immigration Department has announced that the UID card application number system will be temporarily suspended starting from May 8, 2024

The Miyawadi Township Immigration Department has announced that the UID card application number system will be temporarily suspended starting from May 8, 2024.  Although the system is temporarily suspended, they have explained that services will continue to be provided for individuals aged 65 and above or those with poor health conditions. It has been reported that brokers are charging expedited issuance fees ranging from 80,000 to 100,000 kyats for processing UID cards for Myanmar-Thailand border crossings, despite no fees being officially required.

🔹The National Administration Council has announced the resumption of work permits for Myanmar men to work abroad, starting from May 8, 2024

The National Administration Council has announced the resumption of work permits for Myanmar men to work abroad, starting from May 8, 2024. However, only men aged 18 to 22 and those above 31 years old are eligible for the permits, while men between the ages of 23 and 31 are still not permitted.

🔹The Central Bank of Myanmar is planning to sell $5 million through an online trading platform to import-export businesses on May 9, 2024

The Central Bank of Myanmar continues to sell foreign currencies such as dollars and baht to stabilize the foreign exchange market. From February 2 to May 9, 2024, the Central Bank of Myanmar has sold $26 million, 16.5 million yuan, and 96 million baht in the foreign exchange market over a period of three months. Additionally, $1.4 million, 4.2 million yuan, and 13.5 million baht have been sold for importers in the consumer goods, pharmaceuticals, power, agriculture, and communication sectors.

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