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.
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EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 45
📌Weekly Logistics Highlights:
The news highlights this week include: Hong Kong to Europe tonnages continue to build,Korean Air posts record quarterly sales in Q3 on strong cargo demand,Disputes Among Chattogram Lighter Vessel Owners Threaten Cargo Transport as Workers Demand System Reforms...
Hong Kong, China
🔹Hong Kong to Europe tonnages continue to build
Shenzhen, China
🔹JD Logistics Launches Shenzhen-Kuala Lumpur Air Cargo Route to Boost Cross-border Trade
On October 29, JD Logistics launched its Shenzhen-Kuala Lumpur international all-cargo route to enhance cross-border trade between China and Southeast Asia. The route will operate two to five flights per week, facilitating the efficient transportation of e-commerce goods and marking a significant step in JD Logistics' efforts to create an integrated supply chain in the region. Since beginning international operations in 2023, JD Logistics has expanded its network to include several Southeast Asian destinations and plans to double the area of its overseas warehouses by 2025, while also increasing international flight frequencies and exploring long-haul routes to Europe and North America.
Guangzhou, China
🔹Guangzhou Shipbuilding completes the annual ship delivery target
Guangzhou Shipbuilding International, a subsidiary of China State Shipbuilding Group, recently delivered the 49,600-ton chemical/product oil tanker "MURMURE," marking the company's completion of its annual delivery target two months early—the best performance in a decade. This year, the shipyard has delivered various vessels, including container ships and dual-fuel car carriers, with notable efficiency improvements, such as the early delivery of the LNG dual-fuel car carrier "Ganjiangkou" by 223 days. Additionally, the company achieved significant milestones in high-end ship development, including the delivery of the luxury ro-ro passenger ship "GNV Polaris," which features fully localized design and materials.
Shanghai, China
🔹Shanghai Unveils Green Shipping Plan as New Emissions Rules Loom
Shanghai aims to increase its low-carbon fuel supply to over 1 million tons annually by 2030 in response to stricter global emissions regulations. This initiative is part of China's strategy to compete with Singapore, the leading bunkering hub, ahead of impending decarbonization mandates from the International Maritime Organization. While Shanghai's target represents a small fraction of the nearly 20 million tons of fuel oil sold to international shipping in China in 2023, China is expected to harness its renewable energy strengths to advance hydrogen-based fuels like methanol and ammonia. The China Classification Society forecasts that by 2050, China could supply 161 million tons of green ammonia and 143 million tons of green methanol, marking a significant increase from current capacities.
Tianjin, China
🔹Urumqi Launches Inland Container Management Center to Streamline Logistics and Boost Exports
Qingdao, China
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Vietnam
🔹Vietnam records $2 bln trade surplus in October, lowest since May
Vietnam reported a trade surplus of $2 billion in October, a decrease from the previous month as imports rose faster than exports, with shipments increasing by 10.1% and imports by 13.6%. The trade surplus is the smallest since May, with nearly 94% of imports being raw materials for manufacturing. For the January-October period, exports rose 14.9% to $335.59 billion, while imports increased 16.8% to $312.28 billion. Industrial production grew by 7.0% in October, slower than the previous month's growth, reflecting potential impacts from Typhoon Yagi. The government aims for economic growth above 6.8% to 7.0% for the year, and Standard Chartered predicts possible interest rate hikes in 2025 amid rising inflation.
South Korea
🔹Korean Air posts record quarterly sales in Q3 on strong cargo demand
Korean Air reported strong third-quarter results for 2024, with record revenues of 4.24 trillion won ($3.03 billion), a 10% increase year-on-year, driven primarily by a 22% rise in cargo revenue due to growing demand from Chinese e-commerce platforms. Despite a 35% drop in net profit to 276.6 billion won, attributed to external factors like a strong U.S. dollar, the airline plans to diversify its revenue streams and enhance operations in Southeast Asia. Additionally, Korean Air is advancing its merger with Asiana Airlines, awaiting final approvals from the European Commission and U.S. Department of Justice, which could position it as a top 10 global carrier. Post-merger, Korean Air intends to integrate Asiana as a subsidiary while focusing on operational harmonization over the next two years.
America
🔹Potential Resurgence of U.S.-China Tariff War as Trump Returns: Impact on E-Commerce and Air Cargo Market
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
🔹Disputes Among Chattogram Lighter Vessel Owners Threaten Cargo Transport as Workers Demand System Reforms
Disputes among lighter vessel owners in Chattogram over cargo transport management are causing potential disruptions in the transportation of imported goods via inland water routes. Water transport workers have protested, demanding a return to a single serial system for vessel operation and the previous freight rates. The shipping ministry's new policy requires all lighter vessels to obtain a serial number from the Bangladesh Water Transport Coordination Cell (BWTCC), which has faced opposition from some vessel owners who fear it will create a monopoly. The conflict has led to financial difficulties for many vessel owners and unpaid workers, highlighting the need for a resolution to ensure fair practices and stability in the sector.
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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