EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 44

📌Weekly Logistics Highlights:

The news highlights this week include: Shenzhen ranks first in Amazon seller rankings,Shanghai Port Link Arms on Green Shipping Corridor,Korean airlines expand routes to China as demand picks up...

Hong Kong, China

🔹Hong Kong to Europe tonnages continue to build

In the past six weeks, air cargo tonnages from Hong Kong to Europe have surged to their highest level this year, rising 25% compared to the same week last year. This increase suggests a growing demand for e-commerce and other goods as we approach the year's end. Average spot rates from Hong Kong to Europe have also climbed above $5 per kilogram, reflecting a strong market trend. Despite typical seasonal fluctuations, this consistent growth indicates a potential peak season for air cargo in the fourth quarter.

Shenzhen, China

🔹 Shenzhen ranks first in Amazon seller rankings, with three cities in Guangdong in the top five

According to recent data from SmartScout, Shenzhen ranks first globally in the number of Amazon sellers, significantly outpacing other cities. Along with Guangzhou and Dongguan, three cities in Guangdong make the top five, highlighting the region's pivotal role in cross-border e-commerce in mainland China. Collectively, Shenzhen, Guangzhou, and Putian account for over half of the mainland cities in the top 20, reflecting the growing influence of mainland sellers on Amazon's third-party marketplace since 2016, with around 50% of sellers contributing nearly half of the total GMV.

Guangzhou, China

🔹Nansha Port: Pioneering Automation and Strengthening Ties with Hong Kong in the Greater Bay Area

Guangzhou Nansha Port has introduced automation technology, reducing the required workforce by 70% compared to traditional docks, and aims to form a complementary relationship with Hong Kong rather than a competitive one. Nansha Port is the largest and first fully automated terminal in the world, integrating 5G and unmanned driving technology to enhance operational efficiency. The Guangzhou Port Consolidation Center stated that Nansha Port's core competitiveness lies in the Southeast Asian market and can provide Hong Kong with a rich supply of goods to strengthen the shipping hub status of the Greater Bay Area.

Shanghai, China

🔹Shanghai Port Link Arms on Green Shipping Corridor

Shanghai Port and the Port of Hamburg are collaborating to establish a "green shipping corridor" aimed at promoting eco-friendly practices and low-carbon transformation in the shipping industry. Announced at the 2024 North Bund International Shipping Forum, this initiative involves key stakeholders, including Cosco Shipping Lines and Shanghai International Port Group, and focuses on achieving carbon neutrality for vessels docking at both ports. The partnership will enhance the use of shore power and develop necessary infrastructure and policies to support green fuel usage, ultimately contributing to the decarbonization of global shipping.

Tianjin, China

🔹Tianjin port emerges as key gateway for Latin American fresh, frozen imports

On October 26, Tianjin Port received a shipment of 392 tonnes of frozen beef from Latin America, highlighting its importance as a key entry point for fresh and frozen goods in northern China. Supported by three direct shipping routes to Latin America, the port has become the primary gateway for such imports. Since the implementation of a free-trade agreement with Honduras, various South American products, including shrimp and cherries, have begun arriving at Tianjin. China's trade with Latin America has been steadily growing, with 2023 figures reaching 3.44 trillion yuan, reflecting over 80 percent growth in the past decade.

Qingdao, China

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Vietnam

🔹Chancay port to open opportunities for Vietnam's import-export, logistics

Chancay is set to enhance economic and trade relations between Vietnam and Latin America, with the capacity to handle 1.5 million TEUs annually. Experts predict that trade could grow by up to 10% per year if logistics and transport connections improve. The port will facilitate significant increases in Vietnam's import-export turnover, particularly in industry, agriculture, and energy sectors. With new maritime routes, shipping times to Latin America could be reduced by 30% to 50%, saving Vietnamese businesses up to 20% in logistics costs. This will enable Vietnam to export textiles, electronics, and agricultural products while importing minerals and petroleum more competitively.

South Korea

🔹Korean airlines expand routes to China as demand picks up

Major South Korean airlines are expanding routes to China as travel demand recovers post-Covid-19. Korean Air will launch new flights from Incheon to Fuzhou starting December 28, 2024, and resume the Busan-Qingdao route on December 1, marking its first operation in nearly four years. Asiana Airlines is also increasing its Incheon-Beijing and Incheon-Shanghai flights, while low-cost carriers like Jeju Air and Eastar Jet are opening new routes to China. Despite a slow start after Beijing lifted its ban on group tours to Korea, passenger numbers surged in 2024, with 9.05 million travelers reported between January and August, driven by renewed interest in tourism among Chinese travelers. This resurgence is beneficial for Korean airlines, enhancing their profitability due to the lucrative nature of these routes.

America

🔹Lufthansa Cargo introduces freighter service from Vietnam to US

Lufthansa Cargo has expanded into the trans-Pacific market by launching direct freighter service from Vietnam to the U.S., marking its first all-cargo flight from Asia to North America. The airline reported a 16% increase in cargo revenue year-over-year for the third quarter, with strong demand for Vietnamese products driving this expansion. Lufthansa Cargo has shifted its focus towards the Asia-Pacific region and e-commerce shipments, while also managing belly cargo for its sister airlines. Despite a challenging previous year due to weak demand, the cargo division is returning to profitability, with improved earnings reported for the third quarter.

Bangladesh

🔹Cargo transportation halted at Ctg port as workers begin fresh strike

Transportation of export-import containers to and from Chattogram port was halted due to a 48-hour strike by prime mover drivers and helpers, who demanded appointment letters, photo ID cards, minimum wage implementation, and fixed working hours. Although the strike was initially postponed after 34 hours following assurances from the Chittagong Port Authority to address their demands, tensions escalated when owners did not sign an agreement to issue appointment letters, leading workers to stop all movement of prime mover trailers at the port. Consequently, container transportation between the port and inland container depots has been suspended.

Myanmar

🔹Trade between China and Myanmar along the border has almost come to a complete standstill

The conflict in Myanmar continues to escalate, with reports of large groups of Myanmar citizens gathering at border crossings. According to local media, the Daluo port to China has been temporarily closed, causing significant cargo backlogs and nearly halting border trade. Since the resurgence of conflict in 2023, several key border points have closed, and trade in household goods, electrical equipment, and construction materials from China has been suspended. Thousands of people are fleeing to the China-Myanmar border area, where Chinese military forces are tightly guarding the border.

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