EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 23

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹JD Logistics upgrades Hong Kong logistics supply chain

During the JD 618 event this year, JD Logistics upgraded its logistics supply chain in Hong Kong and established the first supply chain industrial base in Hong Kong. While serving corporate customers, JD Logistics Hong Kong Supply Chain Industrial Base further expanded its express logistics services for consumers to meet customers' BC co-warehouse needs. At present, the warehouse industrial base has served many global industry leaders, such as a global leading lifestyle brand that has achieved BC both ends and co-warehouse coverage. On the one hand, the goods needed by the customer in Hong Kong can be stocked at the supply chain Hong Kong industrial base, and timely delivery and replenishment can be carried out according to the needs of the store; on the other hand, Hong Kong consumers can also place orders through multiple online platforms, and the relevant products can be shipped from the supply chain Hong Kong industrial base and delivered to the door by JD Express. In recent years, JD Logistics has continued to actively expand the Hong Kong market. In October last year, JD Logistics fully upgraded JD Express Hong Kong and Macau services to achieve the fastest four-hour delivery, door-to-door delivery and night delivery, etc. In just half a year, the average daily order volume has increased by nearly 10 times.

 Shenzhen, China

🔹Boeing China President emphasize that Shenzhen has become a major cross-border aviation logistics hub in China

Boeing China President Alvin Liu said on Thursday that Boeing has resumed the delivery of its new aircraft to China, including the 737MAX and 787 Dreamliner. Liu pointed out that Shenzhen has been leading the way in aviation logistics development and established supportive policies and a complete industry chain.  "Shenzhen has become a major cross-border aviation logistics hub in China, offering ample collaboration opportunities for industry players," Liu said.

 Guangzhou, China

🔹The 2024 World Battery & Energy Storage Industry Expo is expected to attract over 2,000 exhibitors and around 200,000 visitors 

The 2024 World Battery & Energy Storage Industry Expo (WBE), scheduled to take place August 8-10 is set to occupy a total of thirteen exhibition halls at the China Import and Export Fair Complex in Guangzhou, China. Covering some 165,000 m², the event is expected to bring together over 2,000 exhibitors with around 200,000 visitors.Exhibitors will include organisations from the battery and energy sector specialising in charging products, raw materials, testing equipment, recycling, international logistics, and hydrogen energy.

 Shanghai, China

🔹The Shanghai Containerized Freight Index broke through the 3,000-point level

The Shanghai Containerized Freight Index, a gauge of container shipping rates compiled by the Shanghai Shipping Exchange, climbed 12.6 per cent to 3,044.77 last week. It was the first time since August 2022 that the indicator, which is published on a weekly basis, broke through the 3,000-point level.The growth momentum is set to continue as more exporters book slots on vessels bound for the US and Europe to execute orders, freight forwarders said.

 Tianjin, China

🔹Tianjin Port: Give full play to its advantages as a hub to create an "express road" for sea-rail intermodal transportation

In recent years, Tianjin Port has relied on its hub advantages of sea and land transportation nodes to actively promote "road-to-rail" and "consolidation-to-consolidation", and develop efficient collection and distribution transportation models such as sea-rail combined transportation. Goods arriving at Tianjin Port by sea can "transfer" to different trains. countries and regions to smooth international and domestic logistics channels and improve port radiation capabilities. Up to now, Tianjin Port has opened more than 40 sea-rail combined transport channels. In the first quarter of this year, Tianjin Port’s sea-rail combined transport volume increased by 18.4% year-on-year.

 Qingdao, China

🔹Hong Kong Chief Executive says Qingdao's flight capacity has been enhanced at the Shandong-Hong Kong Cooperation and Exchange Conference

In his video address at the opening ceremony of the Greater Bay Area Shandong Week and the Shandong-Hong Kong Cooperation and Exchange Conference, Chief Executive John Lee said that the central government has further optimized the "Individual Visit Scheme", expanding the covered cities in Shandong Province from just Jinan to include Qingdao. The flight capacity between Hong Kong and Qingdao has been enhanced. Hong Kong has always been Shandong's largest source of foreign investment, accounting for 70% of the province's total utilized foreign investment. Meanwhile, Shandong Province has invested in various industries in Hong Kong, with more than 50 Shandong companies listed in Hong Kong as of the end of last year.

 Vietnam

🔹Outstanding opportunities for Vietnam to become regional logistics centre

Dr. Pham Hoai Chung, deputy director of the Transport Development Strategy Institute, said that the global logistics market scale reached about US$7.98 trillion in 2022 and is projected to hit US$18.23 trillion by 2030 with an average annual growth rate of roughly 10.7%.With a logistics scale of about US$40 billion to US$42 billion, Vietnamese logistics is also considered to be one of the fastest growing sectors.One factor is the great openness of the national economy through participating in 17 Free Trade Agreements (FTAs), including many new generation FTAs such as the EU-Vietnam Free Trade Agreement (EVFTA) which helps to bolster the export of goods, thereby opening up great opportunities for the logistics industry to further grow in the time to come.Furthermore, Vietnam is also considered to have a transportation infrastructure associated with logistics with a system of roads, railways, inland waterways, seaways, and airways.With this analysis, Dr. Chung stated that the country boasts outstanding advantages compared to the rest of the region as it seeks to become a logistics centre to serve transshipment of goods to the region and the world, including the field of transportation and transit.

 South Korea

🔹Increase tariffs in US has doubled the woes of Korean exporters with increased transportation costs and delivery delays.

The U.S. decision to increase tariffs on Chinese exports by up to 100% starting in August has driven Chinese companies to ramp up their push-out exports strategy.This move has doubled the woes of Korean exporters with increased transportation costs and delivery delays.The bypassing of Korean ports by carriers starting in China has been ongoing for weeks, and the situation could persist at least until the third quarter.Key Korean exports such as automotive parts, cosmetics, home appliances, plastics, wireless devices, and textiles are suffering from rising shipping costs and the risk of delivery delays.Vessels departing from China are skipping Korean ports and heading directly to the U.S., citing lack of cargo space.Vessels bound for Europe are rerouting around the Cape of Good Hope due to the Red Sea Crisis impacting the Suez Canal since late last year.The escalating trade tensions between the U.S. and China have triggered a flood of "push-out exports" from China, causing a logistical emergency for Korean exporters.The Korea International Trade Association has highlighted the challenges faced by Korean exporters due to the increased transportation costs and delivery delays.The shifting global trade dynamics have intensified the competition between South Korea and China in the emerging markets of the "Global South."The ongoing trade tensions and logistical challenges are posing significant obstacles for Korean exporters, who are grappling with the shifting global trade landscape.

 America

🔹US customs crackdown on e-commerce yet to impact freighter capacity

According to recent reports, the US Customs and Border Protection (CBP) crackdown on e-commerce shipments has not yet affected freighter flight numbers from North East Asia to North America. The CBP's suspension of customs brokers and increased scrutiny on duty-free shipments worth less than $800 has caused some delays at borders and cancelled flights. However, data from air cargo consultant Rotate suggests that there has been no significant decrease in transpacific freighter flights.

 Bangladesh

🔹Patenga Container Terminal to start operation 10 June

The terminal's operations will commence with the berthing of the Singaporean-flagged vessel MAERSK DAVAO, which is carrying import containers from Port Klang, Malaysia."The Maersk Line container vessel will be berthed at the Patenga Container Terminal on 10 June, marking the beginning of the terminal's operational activities. From then on, regular berthing of ships will be carried out at the terminal according to schedule," Chattogram Port Authority Secretary Mohammad Omar Faruk told TBS.

 Myanmar

🔹Cross-Border Trade Plunges 48% in Myanmar as Ethnic Armies Seize Control

During the first one and a half months of this fiscal year, Myanmar experienced a significant drop of 6.8 percent in total trade. This decline was largely attributed to plummeting trade at official border posts, which handled 48 percent less trade compared to the same period last year. The total value of imports and exports also fell to US$3.53 billion from US$3.79 billion, with imports totaling US$1.77 billion and exports totaling US$1.76 billion. The closure of trade posts on the border with China due to conflict was identified as the main reason for this decline. Even in areas where border trade posts remain open, the routes leading to them are no longer safe, according to traders.

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