EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 36

📌Weekly Logistics Highlights:

The news highlights this week include:Cosco Shipping starts operation of Guangzhou logistics centre,Shanghai Cold Chain Logistics Market is Ready for Takeoff,Korean Air ramps up domestic SAF usage on commercial flights,Bangladesh air cargo rates still elevated...

Hong Kong, China

🔹DP World completes acquisition of Hong Kong’s Cargo Services

Cargo Services, based in Hong Kong, specializes in origin services and employs over 2,500 people across various regions, including Greater China, Asia, Europe, South Africa, and the US. Following its acquisition by DP World, which will now operate over 200 freight forwarding offices and cover 95% of global trade flows, the integration aims to enhance logistics solutions and provide unparalleled value to customers seeking to strengthen trade ties or enter new markets. Both companies highlight the synergy between Cargo Services' expertise and DP World's resources as a powerful force for global trade.

Shenzhen, China

🔹China-South Korea Transportation Group Partners to Establish E-commerce Logistics Company in Shenzhen

South Korean logistics and transportation group "Hanjin" has partnered with China's Aowah International Logistics Group (AWOT) to establish a joint venture e-commerce logistics company called "Hanjin Global Express Shenzhen" in Shenzhen. The two companies plan to jointly expand their logistics business into Southeast Asia and the Americas, with Shenzhen serving as the main distribution and warehousing center. AWOT is responsible for transporting goods from China to South Korea and Japan, while Hanjin handles customs clearance and transportation within South Korea and Japan, and they plan to gradually develop cross-border e-commerce services from China to overseas markets.

Guangzhou, China

🔹Cosco Shipping starts operation of Guangzhou logistics centre

The new Cosco Shipping Sea & Air (Guangzhou) Logistics Center is being developed as an intelligent logistics park that will offer a range of services, including warehousing, logistics, e-commerce, and other value-added services. This facility marks the official establishment of the company's regional logistics supply chain platform in Southeast China, aimed at enhancing the transformation and development of modern logistics. Chairman Han Jun emphasized that the logistics park will utilize smart management systems to leverage visualization, digitalization, and intelligent technology, creating a safe, convenient, efficient, and eco-friendly environment.

Shanghai, China

🔹Shanghai Cold Chain Logistics Market is Ready for Takeoff

According to the latest data, in the first half of 2024, the total value of cold chain logistics in China reached 3.22 trillion yuan, a year-on-year increase of 3.9%. The volume of cold chain logistics amounted to 220 million tons, marking a year-on-year growth of 4.4%. In terms of revenue, the total revenue of cold chain logistics in the first half of the year was 277.9 billion yuan, representing a year-on-year increase of 3.4%. This significant growth is primarily attributed to the continuous expansion of the consumer market and the rising demand for high-quality, fresh food. Statistics indicate that in the first half of 2024, the number of cold chain delivery service providers in Shanghai increased by over 5%. These providers not only serve major supermarkets, catering businesses, and fresh e-commerce platforms within Shanghai but also offer customized cold chain delivery solutions for numerous imported food companies.

Tianjin, China

🔹 China-Singapore Tianjin Eco-City: Implementation Plan for National Green Development Demonstration Zone (2024-2035)

The China-Singapore Tianjin Eco-City is an important cooperation project between the governments of China and Singapore. Recently, the National Development and Reform Commission issued the "Implementation Plan for the Construction of the National Green Development Demonstration Zone in the China-Singapore Tianjin Eco-City (2024-2035)." This plan focuses on multiple areas, including industrial development, energy transformation, and technological innovation, and outlines 29 key tasks aimed at accelerating the development of green low-carbon industries, enhancing energy efficiency, promoting the use of non-fossil energy, and building a sustainable and livable city, while also strengthening the promotion and education of green low-carbon culture.

Qingdao, China

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Vietnam

🔹Transshipment of goods under trade agreements plan expanded to include goods from mainland China via Hong Kong to Vietnam and Nicaragua, among others

In late 2015, Customs introduced the "Transshipment Easy" program, providing customs supervision services and issuing certificates confirming that goods transiting through Hong Kong have not been processed. Initially covering 20 trade agreements involving 68 economies, the program will expand to allow local traders to apply for transshipment certificates for goods moving from mainland China to Vietnam and Nicaragua, as well as from Serbia to mainland China, benefiting from tariff concessions under various trade agreements.

South Korea

🔹Korean Air ramps up domestic SAF usage on commercial flights

Korean Air will begin using domestically produced sustainable aviation fuel (SAF) on flight KE719 from Seoul Incheon to Tokyo Haneda, making it the first Korean flag carrier to operate commercial flights partially powered by South Korean SAF. Starting August 30, 2024, the airline will use a 1% SAF blend on this route once a week, with plans to expand SAF usage to medium- and long-haul flights. The SAF supplied by S-Oil and SK Energy has been certified for sustainability, aligning with South Korea's efforts to grow its SAF market, including the establishment of production standards and regulatory amendments to promote eco-friendly materials in petroleum refining.

America

🔹Canada joins the US in implementing stricter requirements for European air cargo shipments

Canada has joined the US in implementing stricter security requirements for air cargo shippers from Europe and CIS countries, warning that shippers could face an embargo if they do not comply. Air Canada Cargo stated that all cargo from a list of 55 European countries must come from shippers with established business relationships or known consignors, and shipments need to include specific documentation. This move parallels a similar directive issued by the US Transportation Security Administration (TSA), which has also led Korean Air Cargo to temporarily halt shipments from Europe and CIS countries destined for the US until November 18, 2024. The evolving air cargo security landscape has created challenges for freight forwarders and airlines in meeting the new requirements.

Bangladesh

🔹Bangladesh air cargo rates still elevated

Air cargo rates from Bangladesh remained elevated in the last week of August due to various supply chain disruptions, with rates up 163% year-on-year as of August 25. Average prices reached $4.77 per kg to Europe and $6.91 per kg to North America, influenced by factors such as the Red Sea shipping crisis, protests causing transport delays, and major flooding that disrupted critical routes. While the situation has improved recently, air cargo rates continue to be high.

Myanmar

🔹Myanmar Central Bank Announces Interest Rate Hike

On August 14, 2024, the Myanmar Central Bank announced that it had adjusted interest rates for loans and deposits to mitigate inflation.The interest rate hike will take effect on September 1, 2024, with private banks increasing deposit rates to a minimum of 8% and up to a maximum of 12.5%.Currently, private banks are borrowing from the Central Bank at interest rates between 7% and 9%, while private bank deposit rates range from 5% to 7%, and the maximum loan interest rate has been raised to 15%.

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