📌Weekly Logistics Highlights: Alibaba cuts GoGoX stake, global sea freight prices surge in 2024, VinFast to build $500 million EV facility in India, and rising ocean shipping rates due to Red Sea crisis dominate this week's news.

💙Good to know🧡

E-commerce growth has been a major driver for the freight forwarding industry. The increasing popularity of online shopping has led to a surge in international shipments, requiring efficient and reliable freight forwarding services to manage the complex logistics involved in transporting goods across borders.

Hong Kong, China

🔹"Alibaba reduces stake in GoGoX amid Hong Kong logistics services firm’s mounting losses, as it faces cutthroat competition on the mainland

·  Alibaba has cut its GoGoX stake four times over the past two months, leaving it with an 8.89 per cent equity holding as of December

·   GoGoX has recorded losses since 2018 owing to stiff competition on the mainland and its continued international expansion

 

🔹Cathay to reduce flights through to the end of Feb

·         Cathay Pacific is reducing its schedule on average by 12 flights a day through to the end of February to avoid disruptions over the peak Lunar New Year travel period, the airline said on Sunday.

 

·         The company said in a statement that it has consolidated on average six flight pairs per day for the rest of January and February, focusing on routes with multiple daily frequencies where possible."

 

 

 Shenzhen, China

🔹"China-Europe Freight Trains Are Booked Out as Red Sea Shipping Route Remains Under Siege

·         Cargo trains running between China and Europe are fully booked this month as international traders seek alternative modes of transport after many global shipping giants suspended transport through the Red Sea following a number of attacks on their ships.

·         China Railway Express’ China-Europe freight trains are booked up for January and prices are now between 10 percent and 20 percent higher than in December

 

🔹Shenzhen Issues China's First Low-Altitude Economy Regulations

·         Shenzhen, the Chinese city that is home to leading civilian drone maker DJI Technology, has released the country's first regulations for the industry around the low-altitude economy to support its further development.

·         The regulations, which will take effect on Feb. 1, have 61 provisions on infrastructure, flight services, industry applications, technology innovation, and security management, the Shenzhen government said on its website yesterday. The provisions are designed to guide capital into the industry through direct investment, finance leases, and other methods."

 

Guangzhou, China

🔹"Air Serbia reaches agreement for wide-body fleet expansion

·         The Serbian carrier had previously said it hopes to take delivery of its third Airbus A330-200 aircraft by the end of the first quarter of 2024, as well as a fourth jet of the same type during the year. The airline anticipates introducing services to Shanghai, for which it has secured slots for two weekly flights, and Guangzhou, for which it has permits for three weekly rotations."

Shanghai, China

🔹"Global sea freight prices soar to record highs in 2024

·         Global sea freight prices have embarked on an unprecedented trajectory at the start of 2024, experiencing significant spikes not witnessed since November 2022. This abrupt surge follows a series of price increases throughout the last quarter of 2023, shattering the downward trend that prevailed.

·         According to the Drewry WCI composite index, sea freight prices have not surged uniformly across all routes. From Shanghai to Rotterdam, there was a staggering 115 percent increase, reaching $3,577 per container. Meanwhile, sea freight prices from Shanghai to Genoa increased by 114 percent, rising from $2,222 to $4,178. In addition, prices from Shanghai to Los Angeles rose by 30 percent, amounting to $2,726 per 40-foot container. Whereas, prices from Shanghai to New York jumped by 26 percent, reaching $3,858 per container.

 

🔹Chinese clothing manufacturers gain foothold on European soil with their own factories

·         Chinese textile company Shanghai Jingqingrong Garment, which supplies clothing for multinational fashion chains such as Japan's Uniqlo or Sweden's H&M and COS, will open its first textile factory outside China, in Catalonia. This is the result of an investment project by the textile company that has received the support of the Catalan government. It is a recent example of the trend for Chinese garment and textile manufacturers to locate more within Europe."

Tianjin, China

🔹NEV Freight Train to Europe:

• Tianjin launches a groundbreaking freight train exclusively dedicated to transporting New Energy Vehicles (NEVs) to Europe.
• The inaugural train, departing from Tianjin, carries 110 NEVs, marking the initiation of a new international logistics route for Made-in-China NEVs.
• This development signifies a milestone as the first China-Europe freight train dedicated solely to the transportation of NEVs manufactured in China.

🔹Singapore-Tianjin Collaboration:

• Tianjin Municipal Transportation Commission and the Maritime Port Authority of Singapore (MPA) sign a Memorandum of Understanding (MoU) to establish the Singapore-Tianjin Green and Digital Shipping Corridor.
• The collaboration aims to promote digitalization and decarbonization in shipping, fostering sustainable and environmentally friendly practices in the maritime industry.

Qingdao, China

🔹"Qingdao unveils 3-year plan for port-industry-city integration

·         Qingdao recently unveiled a three-year plan (2024-26) to promote port-industry-city integration and help the Qianwan Port Area in the Qingdao Area of the China (Shandong) Pilot Free Trade Zone (Qingdao FTZ) become a demonstration area.

·         The plan aims to strengthen the headquarters economy, attract companies along the entire industrial chain consisting of ports, finance, logistics, trade, and supporting industries, and enhance the service capabilities of the Qianwan Port Area.

🔹Red Sea Crisis Disrupts International Shipping Prices Soaring

·         The Red Sea crisis has gradually been interpreted by the market as a political event from a risk event affecting the shipping market. Based on this judgment, the probability of calming down in the short term is very small."

Vietnam

🔹"Vietnam’s VinFast to set up US$500 million EV facilities in India

·         Construction on the project’s EV and battery manufacturing plants in India’s Tamil Nadu state is expected to start this year and generate 3,000 to 3,500 jobs locally

·         VinFast says the Tamil Nadu project is expected to evolve into a first-class EV production hub in the region, with an annual capacity of up to 150,000 vehicles"

South Korea

🔹"RoK works to operate logistic centre in Vietnam

·         The Ministry of Oceans and Fisheries (MOF) of the Republic of Korea (RoK) said on January 5 that it has kicked off a corporate body in Vietnam, paving the way for the operation of a logistics centre in the Southeast Asian country to support small- and medium-sized enterprises.

·         The Ministry of Oceans and Fisheries (MOF) of the Republic of Korea (RoK) said on January 5 that it has kicked off a corporate body in Vietnam, paving the way for the operation of a logistics centre in the Southeast Asian country to support small- and medium-sized enterprises.

·         The launch of K-UPA came as the ministry has been working with the state-run Ulsan Port Authority to open the centre in Vietnam’s southern province of Dong Nai to help Korean firms store goods under room or low temperatures."

 

America

🔹"Red Sea attacks: Ocean shipping rates jump more than 50% in key lanes

·         Rates from Asia to the U.S. East Coast reached $3,900 per FEU in the past week, with additional surcharges to start this month, according to Freightos.

·         As of Jan. 3, rates from Asia to Northern Europe rose 151% week-over-week to more than $4,000 per forty foot equivalent unit. Similarly, Asia to the U.S. West Coast grew 63% to $2,713 per FEU, which Freightos said may reflect a shift to the West Coast to avoid East Coast transit times.

·         Carriers have also announced surcharges of $500 to $2,700 per container. Surcharges for all Asia to North America shipments will start mid-January."

 Bangladesh

🔹"Bangladesh up 12 notches in WB logistics index

·         Bangladesh's ranking in the World Bank's Logistics Performance Index (LPI) 2023 has gone up by 12 places, a development that has given an indication that the country's skills in trade and business have improved.

·         According to the report, Bangladesh's rank in the index of 139 countries has risen to 88 from 100 in 2018.

·         Bangladesh managed a score of 2.6 on a 5-point scale, helping the country secure third place among five South Asian nations assessed by the World Bank."

Share this article :