EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 04

📌Weekly Logistics Highlights:

💙Good to know🧡

The "bullwhip effect" in supply chain management describes the phenomenon where small fluctuations in demand for a product can result in larger fluctuations as you move upstream in the supply chain.

 Hong Kong, China

🔹Confidence in Hong Kong's Aviation Recovery by Year-End

A senior official from the Airport Authority in Hong Kong expresses confidence in restoring passenger traffic to pre-pandemic levels by the end of the year. Steven Yiu Siu-chung, an executive director at the Airport Authority, notes that factors such as demand from mainland China and increased flight capacity from Cathay Pacific Airways will play a crucial role.

🔹Mitsubishi Fuso Launches New Electric Truck in Hong Kong

Japanese commercial vehicle manufacturer Mitsubishi Fuso Truck and Bus Corporation, in collaboration with its distributor Universal Cars Limited, introduces a new electric truck in Hong Kong. This move is part of a broader initiative to promote sustainable transport in the city.

🔹JD Logistics Expands Self-Operated Express Delivery Business in Hong Kong and Macau

JD Logistics, a stand-alone subsidiary of JD.com, expands its self-operated express delivery services in Hong Kong and Macau. This extension allows JD.com's cross-border online shoppers in these regions to benefit from the self-operated logistics services that have made JD.com a leader in the Chinese mainland.

  Shenzhen, China

🔹China's Express Delivery Sector Sees Double-Digit Growth in 2023

China's express delivery industry experiences significant growth in 2023, with express courier firms handling 132.07 billion parcels. The expansion, amounting to a 19.4% increase compared to the previous year, is attributed to a surge in demand as the economic recovery gains momentum.

🔹China Fostering New Competitive Edges to Bolster Foreign Trade in 2024

China actively fosters new competitive advantages across various sectors, from electric cars to e-commerce platforms, to stabilize foreign trade in 2024. This strategic approach is aimed at supporting the country's trade amidst a sluggish global economy.

 Guangzhou, China

🔹First Boeing 737 MAX Delivered to China Since 2019 Lands in Guangzhou

The first Boeing 737 MAX delivered to China since 2019 lands at Guangzhou's Baiyun International Airport. The aircraft, a 737 MAX 8 belonging to China Southern Airlines, signifies a crucial development for Boeing in the Chinese market.

🔹Chinese Media: Blackstone Group Planning to Sell 11 Logistics Parks in China

Recent reports from Chinese media suggest that the global asset management leader Blackstone Group is planning to sell off logistics assets in China. This includes 11 logistics parks distributed across 11 cities, with the total price exceeding 10 billion yuan. Interested buyers are currently in the discussion phase.

 Shanghai, China

🔹China’s C919 Maker Has Sky-High Ambitions to Grab a Piece of the Aviation Pie from Boeing, Airbus

China is set to invest heavily in expanding the production capacity of its homegrown C919 passenger jet. The state-owned Commercial Aircraft Corporation of China (Comac), the maker of the narrowbody plane, aims to grab a larger market share from dominant players Airbus and Boeing.

🔹Pony.ai Becomes China's First to Secure Cross-Provincial License for Autonomous Freight Trucks

Pony.ai, a Chinese autonomous driving solution provider, achieves a significant milestone by becoming the first enterprise in China to secure a cross-provincial license for the demonstration application of autonomous heavy-duty trucks. Collaborating with Sinotrans, Pony.ai is poised to offer autonomous highway freight services.

 Tianjin, China

🔹Pony.ai Becomes China's First to Secure Cross-Provincial License for Autonomous Freight Trucks

Pony.ai, the Chinese autonomous driving solution provider, secures recognition as the first Chinese enterprise to obtain a cross-provincial license for the demonstration application of autonomous heavy-duty trucks. Collaborating with Sinotrans, Pony.ai is set to offer autonomous highway freight services on the Beijing-Tianjin-Tanggu Expressway.

🔹CMA CGM China Introduces Four New Rail Services in Northern China Increasing Intermodal Connections

CMA CGM China introduces four new rail services in northern China, enhancing intermodal connections and extending its railway network. These services link China’s inland cities to north coastal ports, facilitating efficient transportation.

 Qingdao, China

🔹China Launches a Cargo Transportation Route to Uzbekistan from Qingdao

The Ministry of Transport announces the launch of a new route for road freight transportation to Uzbekistan from China, starting in the city of Qingdao. The corridor aims to speed up the delivery of goods between Uzbekistan and the ports of the Yellow Sea.

🔹Continuous Opening-Up Boosts Qingdao's High-Quality Development

With its strategic location as the largest seaport in the Yellow River Basin, Qingdao continues its high-quality development. The city serves as a maritime gateway for countries worldwide to access inland regions of central and western China.

 Vietnam

🔹Vietnam, South Korea Exporters Get Government Help Amid Red Sea Crisis

As container shipping giants reroute vessels away from the Red Sea due to ongoing conflicts, government agencies in South Korea and Vietnam are taking measures to assist local exporters. In South Korea, the Ministry of Ocean and Fisheries secures freight space to minimize the impact of the Red Sea disruption on exports and imports.

🔹Hapag-Lloyd to Offer Land Transit Through Saudi Arabia Amid Red Sea Disruption

German shipping group Hapag-Lloyd announces its decision to continue routing vessels around the Cape of Good Hope until further notice due to Houthi attacks in the Red Sea. Additionally, the company introduces land corridors through Saudi Arabia to mitigate the impact on its business.

 South Korea

🔹Hanjin Poised for Aggressive Overseas Expansion in 2024

Hanjin, a South Korean company, reveals a strategic initiative to enhance global expansion by increasing the number of its overseas logistics bases to 42 across 22 countries in 2024. This move aims to establish more robust distribution networks, particularly strengthening connections between Asia and Europe.

🔹South Korea Strengthens Logistics Measures Amid Rising Tensions in the Red Sea

South Korea implements a series of measures to mitigate the impact of increased freight rates due to escalating tensions in the Red Sea. The Ministry of Trade, Industry, and Energy unveils a three-stage support plan based on the Shanghai Container Freight Index.

 America

🔹Amazon Eyes AI, Autonomous Vehicles, and Asia as $1B Industrial Innovation Fund Evolves

Amazon's $1 billion Industrial Innovation Fund, launched in April 2022, is evolving to expand geographically and delve into areas like generative AI. The fund aims to support startups focused on logistics, the supply chain, and customer fulfillment, contributing to Amazon's broader mission.

🔹Retailers Return to Bringing in Inventory ‘Just in Time’

Retailers, after grappling with excess inventory over the past 18 months, are revisiting the "just in time" inventory management approach. Rather than stockpiling goods, merchants are now focusing on replenishing items based on demand, avoiding overstocking.

 Bangladesh

🔹Red Sea Crisis: Domino Effect On Bangladesh And Global Supply Chain

The prolonged Red Sea crisis poses potential challenges for Bangladesh's exports, with repercussions on the global supply chain. The country's apparel sector, highly dependent on the affected route, faces difficulties as exporters lose orders due to container shortages and increased lead times.

🔹Bangladesh to Build 100,000 TEU Rail Inland Box Depot

Bangladesh plans to construct a 100,000 TEU rail inland box depot in the Ghorashal area, Narsingdi district. This inland container depot aims to facilitate the transport of raw materials and produce to and from nearby factories, enhancing overall logistics efficiency.

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