The market outlook for Hong Kong airfreight traders has weakened recently, with the DHL Air Trade Index dropping to 35.2 points in the fourth quarter, a decline from previous quarters. Despite this, traders remain cautiously optimistic about the upcoming peak season, with 20% maintaining a positive outlook, though an increase in negative sentiment has been noted, particularly regarding electronic products. Challenges such as weak consumption demand, high shipping costs, and economic downturns are influencing expectations. Overall, while many anticipate a busy peak season, there are concerns about capacity and pricing dynamics.
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EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 43
📌Weekly Logistics Highlights:
The news highlights this week include:Shenzhen has become the 'Number One City for Foreign Trade,' the Port of Shanghai is set to surpass 50 million TEUs, and the Vietnamese e-commerce market is showing strong performance...
Hong Kong, China
🔹Hong Kong airfreight market outlook weakens but busy peak still expected
Shenzhen, China
🔹Comprehensive Advantages Create Shenzhen as the 'Top Foreign Trade City.'
In the first quarter, approximately 4,000 new energy vehicles were shipped from Shenzhen on BYD’s "Pioneer 1" vessel. By the third quarter, Shenzhen's foreign trade reached a historic high of 3.37 trillion yuan, marking a 20.9% year-on-year increase, and positioning the city as a leading player in China's foreign trade. This growth is driven by diverse industrial strengths, government support for market expansion, and a significant rise in cross-border e-commerce, which saw a 130% increase in trade this year.
Guangzhou, China
🔹Guangzhou has attracted over 1,000 cross-border e-commerce companies to conduct business.
On October 21, the Guangdong Provincial Government's Information Office held a press conference regarding the province's import and export situation for the first three quarters of 2024. Huang Bin, Deputy Director of Guangzhou Customs, emphasized that accelerating the development of cross-border e-commerce and exhibition economies is vital for enhancing the quality of foreign trade and promoting Guangdong's high-level openness. He noted that Guangzhou has attracted over 1,000 cross-border e-commerce enterprises, creating a comprehensive ecosystem that includes favorable policies, platform concentration, efficient logistics, and financial innovation.Guangzhou is also a major exhibition city in China, with the Canton Fair serving as a key platform for international trade for over 60 years. Huang highlighted innovative efforts by Guangzhou Customs to support cross-border e-commerce, such as a new export consolidation model to reduce costs and improved logistics management to allow for the efficient handling of goods. Additionally, they have implemented 24-hour customs clearance appointments and policies to facilitate tax refunds and improve cash flow for businesses, enhancing the overall development of cross-border e-commerce.
Shanghai, China
🔹Shanghai ports to break 50 million container barrier, set global shipping record in 2024
Shanghai's container ports are projected to handle a record 50 million TEUs this year, reinforcing the city’s position as the world's leading container port despite a slowdown in China’s exports. Mayor Gong Zheng announced plans to liberalize the shipping industry, promote clean energy and digital technology, and enhance maritime services to attract international carriers. While exports have declined for four consecutive months, with August seeing an 8.8% drop year-on-year, Shanghai's port activities continue to grow, with an 8% increase in TEUs handled in the first nine months of 2024 compared to the previous year.
Tianjin, China
🔹In the first three quarters, automobile exports from Tianjin port increased by 28.2% year-on-year, continuing the growth trend
Qingdao, China
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Vietnam
🔹Vietnam e-commerce market shows robust performance
Vietnam's e-commerce market saw significant growth in the first nine months of the year, reaching $9.5 billion in revenue, a 37.7% increase compared to the previous year. TikTok Shop and Shopee led the way with revenue growth of 110.6% and 11.3%, respectively, while Tiki rebounded with a 38.1% increase from Q2. The low-price segment, particularly products under $8, accounted for over half of the market revenue, and key categories such as beauty and fashion accessories continued to perform well. With the entry of Chinese platforms like Temu and the adaptation of existing platforms for Vietnamese consumers, local businesses are advised to enhance their strategies through brand building and improved customer service to remain competitive.
South Korea
🔹Air cargo volume up 13 pct through Sept. amid Red Sea crisis
Korean carriers experienced a 13% year-on-year increase in international air cargo volume through September, handling 2.09 million tons, compared to 1.84 million tons in the same period last year. This marks the first time in five years that nine-month volumes exceeded 2 million tons, driven by rising maritime shipping costs and delays due to geopolitical issues in the Red Sea. Korean Air's cargo volume increased by 12% to 1.19 million tons, while Asiana Airlines saw a 6.8% rise to 565,000 tons, and Jeju Air experienced a 25.7% increase to 86,000 tons.
America
🔹Ship owner, manager in US bridge collapse agree to pay $102M for cleanup
The owner and manager of the cargo ship responsible for the Baltimore bridge collapse have agreed to pay over $102 million in cleanup costs to settle a lawsuit from the Justice Department. However, this settlement does not cover the estimated $2 billion needed for rebuilding the bridge, for which the state of Maryland has filed its own claim. The collapse, caused by the ship’s power failure leading to a strike on the bridge, resulted in the deaths of six road crew workers and significant disruptions to commercial shipping traffic in the Port of Baltimore. The case is part of a larger liability dispute that will determine additional damages owed by the ship's owner and manager.
Bangladesh
🔹Bangladesh's garment export to Europe falls 3.53 pct in January-August
Bangladesh maintained its position as the second-largest garment exporter to the EU, but apparel shipments declined by 3.53% to $12.90 billion from January to August, primarily due to domestic political turmoil and labor unrest. High inflation in the European economy also contributed to the drop. Recent labor unrest has led to significant production losses of $400 million and has resulted in canceled orders and postponed visits from international retailers, further complicating the challenges faced by Bangladeshi garment exporters.
Myanmar
🔹After the civil war with the rebels, the Myanmar military lost five major border ports and nearly ten billion dollars in tax revenue
A recent report from the independent research group ISP-Myanmar reveals that, following over three years of turmoil in Myanmar’s national governance and the military actions by rebels on October 27, 2023, the State Administration Council has lost five border trade ports, resulting in an annual loss of nearly $9.48 billion in border trade. The affected ports include Laiki, Qingshuihe, Meise, Rik, and Muse.Before the rebels gained control, four of these ports had daily trade volumes around $7 million. Although some other ports remain under the administration’s control, trade has stalled. Merchants are suffering significant losses, impacting both their businesses and national tax revenue. Since the military coup on February 1, 2021, it is estimated that over $27 billion has been generated from border trade. However, the State Administration Council has not publicly addressed the trade stagnation, although it has been promoting maritime trade since early 2024.
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