EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 26

📌Weekly Logistics Highlights:

This week's news highlights include LME eyeing Hong Kong as a global warehouse location,Foreign developers dominate modern warehouse market in Vietnam,South Korea to create $3.5 billion fund for supply chain resilience, economic security...

Hong Kong, China

🔹LME eyeing Hong Kong as a global warehouse location

HONG KONG, June 27 (Reuters) - The London Metal Exchange (LME) is exploring the possibility of listing Hong Kong as an LME warehouse location, the chief executive of its owner said on Thursday, as the exchange looks to strengthen its global logistics footprint.Registering warehouses in China, the world's largest consumer of industrial metals, to store metal traded on the LME has been a strategic aim since Hong Kong Exchanges and Clearing (HKEX) (0388.HK)bought the LME in 2012 for $2.2 billion.

Shenzhen, China

🔹Etihad Cargo expands partnership with China's SF Airlines with new Shenzhen route

ABU DHABI, 26th June, 2024 (WAM) -- Etihad Cargo, the cargo and logistics arm of Etihad Airways, has expanded its partnership with China's SF Airlines to increase the frequency of flights between their mega hubs, Abu Dhabi and Ezhou.Etihad Cargo and SF Airlines will also launch a new freighter service between Shenzhen and Abu Dhabi to boost cargo connectivity and capacity between China, the UAE, and other global destinations.Starting 15th July 2024, Etihad Cargo will operate two freighters between Abu Dhabi and Ezhou, connecting China to its global network through the carrier's Abu Dhabi hub. SF Airlines will operate an additional freighter from Ezhou, bringing the total number of flights between Abu Dhabi and Ezhou to five per week.They will also launch a new weekly freighter service between Shenzhen and Abu Dhabi, adding a fifth gateway destination to Etihad Cargo's Chinese network. Shenzhen Bao'an International Airport, China's third-largest cargo airport, has been among the world's top 20 airports by cargo volume since 2021.

Guangzhou, China

🔹China’s Guangdong Province Aims to Boost Hydrogen Vehicle Use in Logistics

(Yicai) June 26 -- China’s southern Guangdong province issued a blueprint today to increase the use of hydrogen vehicles in local logistics networks, with the economic powerhouse planning to put more than 500 fuel cell vehicles into service this year.The project will last 18 months until December 2025, covering cities including Guangzhou, Foshan, Dongguan, and Jiangmen. In the first phase, the provincial capital of Guangzhou and Foshan will roll out the plan in their urban cold-chain logistics operations.The province will put 500 4.5-ton and 10 49-ton hydrogen refrigerator trucks into operation by the end of this year, initially forming a cold-chain logistics network along the Guangzhou-Zhanjiang High-Speed Railway and the Pearl River Delta region, according to the blueprint.By the end of next year, the project aims to complete the construction of a few integrated oil and hydrogen refueling stations and to operate 2,000 4.5-ton and 100 49-ton refrigerator trucks.

Shanghai, China

🔹Shanghai Pudong Airport Comprehensive Bonded Zone Public Logistics Center Project Completed

China Net/China Development Portal News Recently, the Shanghai Pudong Airport Comprehensive Bonded Zone Public Logistics Center (excluding piles) project, undertaken by Shanghai Baowu Municipal Engineering Co., Ltd., has been completed. The project is located outside the Waigaoqiao Free Trade Zone in Pudong New Area, Shanghai. The main construction tasks include a single-story storage warehouse and garbage house, and auxiliary buildings such as the P station, containing a cable interlayer basement. The total construction area is approximately 11,221.78 square meters, with 11,161.78 square meters above ground and 60 square meters underground. The maximum height is 13.615 meters, the maximum span is 24 meters, and the maximum single-building area is approximately 11,020 square meters.

Tianjin, China

🔹The Andawei Aviation Airborne Equipment and Aviation Maintenance Industrial Base Project Kicks off in the Tianjin Port Free Trade Zone

According to the report, the aviation airborne equipment and aviation maintenance industrial base project of Beijing Andawei Technology Co., Ltd. (hereinafter referred to as Andawei), with a planned total investment of 500 million yuan, has officially kicked off in the Tianjin Port Free Trade Zone. Andawei is a leading enterprise in China's aerospace field engaged in the manufacturing of high-end equipment.The Andawei Tianjin project is another landmark project that implements the major strategy of coordinated development of Beijing-Tianjin-Hebei, and promotes the integrated development of "Beijing R&D and Tianjin manufacturing" in the Beijing-Tianjin-Hebei region. The project is expected to be put into use by the end of 2025, and will mainly engage in civil aviation maintenance, composite material manufacturing, airborne equipment production, and military product business, among others. The project plans to introduce 200 core R&D personnel within two years, and the total number of employees will exceed 1,500 after reaching full production capacity.In the future, Andawei will take Beijing as its headquarters, R&D center, and sales center, while the Tianjin base will serve as the civil aviation business department, intelligent business department, and the R&D, production, sales, and delivery center for new products, forming an integrated and complementary business layout in Beijing and Tianjin.

Qingdao, China

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Vietnam

🔹Foreign developers dominate modern warehouse market in Vietnam

Hanoi (VNS/VNA)-Foreign developers have dominated the modern warehouse market in Vietnam, accounting for over 75% of the country’s market share by the end of 2023.Despite the global economic downturn, Vietnam's warehousing sector continues to expand. This growth is driven by increasing demand for cold storage, especially from the seafood and fresh food processing industry, which accounts for 70-80% of the cold storage demand in Vietnam.

South Korea

🔹South Korea to create $3.5 billion fund for supply chain resilience, economic security

The South Korean government is taking comprehensive measures to strengthen its economic security and stabilize critical supply chains. This includes creating a 5 trillion won ($3.59 billion) fund to provide low-interest loans to companies playing a key role in ensuring stable supplies, as well as offering tax incentives for the development of crucial technologies. The government will also designate more "economic security items" and actively manage the supply stability of these strategically important materials and resources. These steps are aimed at reducing South Korea's reliance on foreign sources and enhancing its economic resilience amid intensifying global supply chain challenges.

America

🔹UPS to Sell its Coyote Logistics Business Unit

June 24 | The world's largest package delivery company, United Parcel Service (UPS), has announced the sale of its business unit Coyote Logistics to RXO for $1.025 billion. UPS states that the transaction will help it focus on expanding its core business. The company had acquired Coyote in 2015 for $1.8 billion. According to RXO's announcement, the transaction price includes both equity and debt, with $300 million worth of shares issued to MFN Partners and $250 million worth of shares issued to Orbis Investments. RXO is a company that provides delivery services to shipping companies.

Bangladesh

🔹Bangladesh set to launch direct flights with Switzerland

Bangladesh is set to launch direct flights with Switzerland with at least 14 flights operating between the countries per week.The Government of Bangladesh and the Swiss Federal Council in Bern inked an agreement to this end on 4 June, marking significant progress in expanding the country's air travel network, reads a press statement.Under the terms of the agreement, designated airlines from both countries will be able to operate 7 passenger and 7 cargo flights per week.

Myanmar

🔹Myanmar's Total International Trade Reaches $4.55 Billion in 2024-25 Fiscal Year as of May 31

According to data from Myanmar's Ministry of Commerce, Myanmar's total international trade reached $4.55 billion in the 2024-25 fiscal year as of May 31, a decrease of $770 million from the $5.3 billion recorded in the same period of the previous fiscal year. Exports were valued at $2.3 billion, while imports were $2.243 billion. During this period, Myanmar's maritime trade is estimated to be $3.6 billion, while border trade reached $910 million.

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