EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 25

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹Logistics Industry Indicates The Branch Route of the Shenzhen-Zhongshan Corridor to Nansha Will Reduce the Transportation Costs for Goods Shipped to Hong Kong

The Shenzhen-Zhongshan Bridge, part of the Shenzhen-Zhongshan corridor, has a branch route leading to Nansha, Guangzhou, which is expected to open by the end of this year. The logistics industry believes that this will reduce the transportation costs for goods being shipped to Hong Kong.Overlooking from Maan Island in Zhongshan, in addition to the Zhongshan Bridge of the Shenzhen-Zhongshan corridor, the under-construction Guangzhou Nansha National Fitness and Sports Center can also be seen. This 60,000-seat stadium will be one of the main venues for next year's National Games.The Shenzhen-Zhongshan corridor has a "Y-shaped" route on the west bank of the Pearl River. The main line from Shenzhen to Zhongshan is expected to open by the end of this month. As for the branch leading to Nansha, the authorities stated that the road construction from Nansha to the southern section of the Zhongshan-Nansha Expressway is still ongoing, and is expected to be completed by the end of this year, seamlessly connecting to the Shenzhen-Zhongshan corridor.A business leader engaged in import and export trade at the Nansha Port pointed out that the travel time between Nansha and Shenzhen will be shortened to 20 minutes, significantly reducing the transportation costs for goods shipped to Hong Kong.

 Shenzhen, China

🔹The 'International Logistics Village' in Shenzhen generated revenue of nearly 7 billion yuan in the first two months of the year".

The Fuwu community in Fuyong Street, Bao'an District, Shenzhen is known as the "International Logistics Village" due to its proximity to Bao'an International Airport and Fuyong Port.This year, the trade freight order volume in the area has grown rapidly, with orders to Russia, Europe, the US, and Southeast Asia increasing by 20% year-on-year. The revenue in the first two months of the year reached nearly 7 billion yuan.The bustling "International Logistics Village" has 649 logistics companies and nearly 30,000 truck drivers. Every morning, the truck drivers go to pick up orders from clients and rush to the "International Logistics Village" to complete the "last mile" of cross-border goods logistics.After consolidated in the warehouses in the "International Logistics Village", the cross-border cargoes are then transported by trucks to the nearby airport for customs clearance and international shipment.As Shenzhen's largest logistics hub, the "International Logistics Village" reflects the booming cross-border e-commerce business. In 2023, Shenzhen's cross-border e-commerce imports and exports exceeded 300 billion yuan for the first time, becoming a new driving force for the high-quality development of Shenzhen's foreign trade.

 Guangzhou, China

🔹Jinan Launches Scheduled High-Speed Freight Train Service to Guangzhou

Reporters learned from the China Railway Jinan Bureau that the first "Lu-Yue Express" freight train service from Jinan to Guangzhou has successfully arrived at the Guangzhou International Port Station after running for 39 hours. This marks the two-way operation of the high-speed freight train service between the two cities.On June 15, the China Railway Jinan Bureau implemented a new train operation plan. The container point-to-point train service from Jinan Dongjia Town Station to Guangzhou Dalang Station has been upgraded with an increased speed of 120 km/h, becoming the scheduled high-speed freight train service between Jinan and Guangzhou, known as the "Lu-Yue Express".This train service carried 30 standard 40-foot containers loaded with various goods produced by companies around Jinan. Departing from Jinan, it arrived in Guangzhou 39 hours later, 37 hours faster than the regular operation time, significantly improving the railway container logistics efficiency between the two cities.Jinan and Guangzhou have frequent commercial exchanges, and this train service has formed a stable cargo source market and customer base, with an average monthly delivery volume of about 210 cars in the past three years. Currently, this train service operates 3 times a week, and there are plans to increase the frequency based on market demand, aiming to achieve daily operation.

 Shanghai, China

🔹German logistics company time:matters establishes new courier terminal at Shanghai Pudong International Airport

German time-critical logistics company time:matters will be setting up a new courier terminal at Shanghai Pudong International Airport this month, which will be used to handle express and air cargo freight. This courier terminal is being built in collaboration with Shanghai Pudong International Airport Cargo Terminal Co., Ltd. (PACTL), and is expected to reduce cargo processing time by up to two-thirds, while also allowing time:matters to provide customized and flexible services.The terminal design is aimed at optimizing monitoring and processing speed for time-critical and sensitive goods. It allows personnel to directly access the apron to monitor cargo loading and unloading, and utilizes a real-time monitoring system to promptly notify customers of any abnormal situations.Additionally, the terminal features a dedicated receiving and inspection area, X-ray inspection equipment, as well as document reception and dispatch counters, in order to enhance service quality. To improve cargo flexibility and speed, and ensure optimal delivery and subsequent transportation, time:matters relies on efficient truck lanes, dedicated loading and unloading ramps for pickup and delivery, as well as door-to-door delivery services.

 Tianjin, China

🔹The "Beijing-Tianjin-Hebei Commercial and Logistics Development Index" was recently released, showing improved profitability of core businesses

Recently, the "Beijing-Tianjin-Hebei Commercial and Logistics Development Index" was released, jointly investigated and analyzed by the Hebei Provincial Department of Commerce and the Hebei Modern Logistics Association. The data shows that in the first quarter of this year, the Beijing-Tianjin-Hebei commercial and logistics development index was 52.02%, an increase of 0.27 compared to the same period last year.The inventory turnover rate index was 53.03%, reflecting that the Beijing-Tianjin-Hebei commercial and logistics enterprises had relatively low inventory backlog, which also indirectly reflected a slight increase in the supply and demand in the commodity circulation sector.The new order index was 49.22%, up 0.15 percentage points year-over-year, indicating that the number of orders accepted by Beijing-Tianjin-Hebei commercial and logistics enterprises increased slightly compared to the same period last year, and the new market demand increased.Furthermore, the core business profit index was 46.53%, up 0.23 percentage points from the same period last year, reflecting that the core business profits of Beijing-Tianjin-Hebei commercial and logistics enterprises have increased compared to the same period last year, the profitability of the logistics industry has strengthened, and the overall economic efficiency of the logistics industry has increased.

 Qingdao, China

🔹COSCO Shipping Logistics and Xinhua Group Fully Launch the Qingdao Xinhua Cold Chain Logistics Center Light-Asset Operation Service

According to China.org.cn Finance on June 20th, COSCO Shipping Logistics recently announced that the company and Shandong Xinhua Construction Group Co., Ltd. (hereinafter referred to as "Xinhua Group") have signed a strategic cooperation framework agreement. The two parties will conduct in-depth cooperation in areas such as logistics park investment and development, engineering construction, tenant recruitment and operation, property services, and financial services.It is understood that the two parties have already fully launched the first collaborative project - the light-asset operation service of the Qingdao Xinhua Cold Chain Logistics Center. COSCO Shipping Logistics will provide the entrusting party with a series of professional services such as project tenant recruitment and leasing, and operation management. This will be a starting point for deeper and more comprehensive cooperation on more projects.As a state-owned enterprise and the logistics asset operation and management service provider for many well-known domestic and foreign fund companies, the company manages a project area of over 3 million square meters.The Qingdao Xinhua Cold Chain Logistics Center is located in the Qingdao Bonded Port Area, adjacent to the Qianwan Port, surrounded by highways and rail transit, and has a well-developed transportation network, making it an important logistics hub. The total construction area of the project is 82,000 square meters, including 4 cold storage and processing workshops, and inspection areas.

 Vietnam

🔹The Finance-Budget Committee of the Vietnamese National Assembly is proposing to impose value-added tax (VAT) on imported goods on e-commerce platforms such as Shopee, Lazada, Tiki, and TikTok in Vietnam

According to statistics from the Vietnam Post and Telecommunications Group (VNPT), during March of last year, an average of nearly 4-5 million orders per day were shipped from China to Vietnam - with the average order value ranging from 100,000 Vietnamese dong ($3.9 or ¥28.5) to 300,000 Vietnamese dong ($11.7 or ¥85.5). The media also further reported that the average daily circulation value of goods on these e-commerce platforms can reach $45-63 million. On the other hand, as the policy background for this taxation proposal, it is understood that currently, Vietnam exempts import tax and VAT on imported goods valued below 1 million Vietnamese dong delivered via express delivery services. As the starting point for this proposal, the committee stated that in the past, the number of low-priced e-commerce orders imported into Vietnam was relatively small, and exempting them from VAT would not have a significant impact on tax revenue. However, with the rapid development of cross-border e-commerce, this number has increased significantly. In addition, many countries have already canceled the VAT exemption for low-value imported goods to ensure tax revenue and create a fair business environment between domestic and imported goods. The media reported that the committee believes that Vietnam can refer to other countries that have already implemented taxation, and thus increase its tax revenue.

 South Korea

🔹Nongshim is investing about $165 million over the next three years to expand its logistics operations amid growing appetite for the popular Korean food.

South Korean instant noodle maker Nongshim, famous for its Shin Ramyun-brand instant ramen, is investing 229 billion won (about $165 million) over the next three years to expand its logistics operations in the country’s coastal city of Ulsan amid growing appetite for the popular Korean food.Korean ramen exports globally are projected to hit a record $1 billion this year, up from $952.4 million in 2023. In April, Korea’s monthly export for ramen reached a record $108.6 million, according to the Korea Customs Service.

 America

🔹Container ship shortage, Shanghai to US West Coast freight rates surge 92%

Spot (immediate contract) freight rates for container ships have been soaring. Looking at the freight rates from Shanghai to the US West Coast, on June 14th it was $6,906 per 40-foot container, up 92% from the end of April. Freight rates to the US East Coast also rose 71%. Due to ships continually avoiding sailing through the Red Sea, and the increase in cargo volume, container ship capacity has become insufficient. The competition for space has led to skyrocketing freight rates. Due to disrupted shipping schedules and increased cargo volumes, major container ports in Asia and Europe are severely congested. With ships regularly having to wait for berths, the Maritime and Port Authority of Singapore (MPA) stated in a document released on May 30th that in an effort to make up for delays caused by logistics disruptions, shipping companies are attempting to make up for delays by skipping originally planned port calls, which has led to increased throughput. It is reported that measures are being taken to alleviate the congestion, such as reactivating previously idled berths (docks).

 Bangladesh

🔹Indian Railways pushes North-East connectivity via Bangladesh and Nepal

The Indian Railways will look to connect the North East with rest of the country through two neighbouring countries – Bangladesh and Nepal – thereby reducing travel time to the region, according to government sources.These routes will look to avoid the `Chicken Neck’ region in the Siliguri area of West Bengal. The Final Location Survey (FLS) sanctioned by the Railway Board is around 1275.50 km.Of the survey ordered, new railway lines connecting Bangladesh will be around 500 kms while gauge conversion will be around 367 km. In Nepal, over 200 km of new lines will be laid; while in the North East there will be another 212 km of lines being laid, that include.

 Myanmar

🔹Myanmar's Seafood Exports Reach $1.13 Billion in 2024-25 Fiscal Year

According to the statistics of the Myanmar Ministry of Commerce, from April to June of the 2024-25 fiscal year, Myanmar's seafood exports reached $1.13 billion, an increase of $3.6 million compared to the same period last year. The main export destinations include the United States, Thailand, Australia, China, Japan, and about 40 European countries.The Myanmar Department of Fisheries stated that it is cooperating with fish and shrimp farming enterprises as well as overseas exporters to promote the growth of Myanmar's seafood exports. The Myanmar Department of Fisheries has set a seafood export target of around $800 million for the 2024-25 fiscal year.

🔹Vice Chairman Soe Win Meets with Indian Ambassador to Myanmar

On June 17, 2024, in Nay Pyi Taw, National Unity Party Vice Chairman Soe Win met with H.E. MR. Abhay Thakur, the Indian Ambassador to Myanmar. The meeting was attended by Vice Chairman Soe Win, Deputy Foreign Minister MR. Lwin Oo, Deputy Chief of Mission of the Indian Embassy in Myanmar MR. Ashish Sharma, and other relevant personnel. The meeting discussed measures for peace and security in the Myanmar-India border areas, the revitalization of trade, cooperation plans in the investment sector, as well as development issues that the two countries are cooperating on.

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