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EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 49

๐Ÿ“ŒLogistics Highlights: UPS Hub Launch, SF Express Expansion, and Global Industry Trends


๐Ÿ’™Good to know๐Ÿงก

The word “logistics” comes from a 19th-century French word, “logistique.” This French word was originally exclusively associated with the transportation of soldiers and military supplies until it was later adopted for civilian applications.




Hong Kong, China



๐Ÿ”นUPS Expanding Global Trade with Advanced Operations at New Hong Kong International Airport Hub


  • Global logistics leader UPS (NYSE: UPS) and the Hong Kong Airport Authority forge an agreement, enhancing UPS services and bolstering company operations in Asia through a cutting-edge hub at Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge.
  • The state-of-the-art hub will serve as UPS Hong Kong’s central facility, streamlining the processing and sorting of imports, exports, and transshipments between Europe, the U.S., and diverse Asian regions.




 Shenzhen, China


๐Ÿ”นGlobal Expansion Strategies and Logistics Optimization by Leading Courier Companies


โ˜‘ SF Express, a prominent courier company listed on the Shenzhen Stock Exchange, is strategically expanding its global presence and enhancing logistics efficiency. The company, recognized for its extensive package delivery volume and revenue, identifies international flight networks as a key strength.

  • With China's increased investments in Southeast Asian countries, SF Express has articulated its commitment to prioritizing development in the region. Moreover, the company has ambitious plans to extend its footprint in the Middle East and Latin America, signaling a proactive approach to capitalize on emerging markets and contribute to the evolution of global logistics.




Guangzhou, China


๐Ÿ”นIATA Cargo Day Showcases Advancements in Guangzhou Baiyun Airport's Cargo Facilities


  • The IATA Cargo Day - North Asia Guangzhou International Air Cargo Hub High-quality Development Conference took place in Guangzhou from December 7th to 8th, shedding light on the remarkable progress in the development of cargo facilities at Guangzhou Baiyun Airport.
  • Rapid advancements are underway in the third-phase expansion of Baiyun Airport, poised to elevate its status as a formidable hub. The expansion includes the addition of five runways, two terminal areas, and two cargo terminal areas (east and west). Notably, the cargo terminal area is set to more than double in size, expanding from 500,000 square meters to over 1 million square meters. This expansion aims to significantly enhance the airport's cargo throughput capacity to an impressive 6 million tons.



Shanghai, China


๐Ÿ”นExpanding Horizons: Chinese Logistics Firm Invests in Large Car Carrier Ship for Growing Car Export Demand


  • Addressing the burgeoning car export market, a Chinese logistics company has set in motion the nation's first massive car carrier ship, named "Jiuyangxing." This move underscores the dynamic growth in the car export sector.
  • The impressive vessel, with a capacity to transport 7,000 cars, embarks on its inaugural journey from Shanghai Nangang Terminal to the Waigaoqiao Port Area. Onboard will be 3,000 Hyundai and Lincoln vehicles, symbolizing the escalating demands in the automotive export landscape.

OOCL Launches New Services to Strengthen China-Indonesia-Philippines Connectivity

  • Orient Overseas Container Line Ltd. (OOCL) has unveiled the CIP1 & CIP2 Services as part of its strategic initiative to fortify network coverage in China, Indonesia, and the Philippines.
  • The CIP1 & CIP2 Services will establish direct links across multiple ports in China, Indonesia, the Philippines, and Singapore, enhancing connectivity and efficiency in maritime trade.
  • The rotation for CIP1 includes key ports such as Shanghai, Ningbo, Quanzhou, Shantou, Shekou, Nansha, Jakarta, Surabaya, Davao, and Shanghai, contributing to streamlined and direct connections within the region.


Tianjin, China


๐Ÿ”นGlobal Maritime Companies Target China for Long-Term Expansion


  • Under the theme "Shipping throughout the world, leading the future," an exposition took place in Tianjin from Nov 16 to 18, dedicated to advancing the development of the global shipping industry and marine economy.
  • Distinguished as China's inaugural comprehensive shipping industry exhibition, boasting the most extensive array of categories, the three-day event drew participation from over 400 enterprises and renowned global ports spanning 22 countries and regions. Notably, companies like Mangatas are strategically aligning with the vast Chinese market, envisioning it as a pivotal source of new growth opportunities for their ventures.


Qingdao, China


๐Ÿ”นExpansion in RoRo Segment: Eight New Vessels Ordered with Alternative Fuel Propulsion


  • In a notable development, eight new vessels equipped with alternative fuel propulsion have been ordered, specifically catering to the RoRo (Roll-on/Roll-off) and car carrier segment.
  • This procurement includes four LNG-powered ships and an additional four powered by methanol. The strategic choice of alternative fuels underscores a commitment to sustainability and aligns with evolving environmental considerations within the maritime industry.
  • Throughout the current year, the platform has recorded a remarkable total of 268 new orders for vessels incorporating alternative fuel technologies. This figure encompasses 112 LNG-powered ships and 152 vessels utilizing methanol as their fuel source, reflecting a growing trend toward cleaner and more sustainable maritime practices.





๐Ÿ”นVietnam's Warehouse Sector Navigates Challenges with Optimism


  • In the face of global challenges impacting the demand for warehouse spaces, Vietnam's warehouse sector identifies opportunities for growth, as outlined in a recent report by Savills Vietnam.
  • The decline in global demand is attributed, in part, to reduced manufacturing orders and transaction volumes of goods. Despite these challenges, the Vietnam Logistics Business Association (VLBA) reports an impressive 15 percent growth in Vietnam's logistics industry in 2022. This positions the country among the leaders in global logistics sector expansion.
  • The rapid growth of the industry is attributed to the simultaneous rise in high value-added manufacturing and a burgeoning middle class, which is driving the surge in e-commerce activities. Vietnam's warehouse sector remains resilient and optimistic amid the evolving dynamics of the global market.


South Korea


๐Ÿ”นESR Divests Fully-Leased Data Center and Logistics Facility in South Korea


  • ESR, a prominent logistics real estate firm, has successfully sold a fully-leased data center and logistics facility situated outside Seoul, South Korea. The announcement comes as part of ESR's strategic initiatives, showcasing its South Korean platform, ESR Kendall Square (ESRKS).
  • The completed sale involves the Ilsan Distribution Centre data and logistics center located in Goyang, emphasizing ESR's dynamic approach in managing its real estate portfolio.

China's Urea Export Halt Sparks Concerns of Logistics Crisis in South Korea

  • A recent decision by China to halt customs clearance on urea exports, a substance crucial for reducing carbon emissions in diesel vehicles, is raising concerns about the possibility of another logistics crisis in South Korea.
  • This development revives memories of a similar disruption two years ago when China's actions led to industrial disruptions in South Korea. The current pause in urea exports from China poses potential challenges to South Korea's logistics and highlights the interconnected nature of global supply chains.






๐Ÿ”นCirba Solutions Partners with Toyota to Extend Battery Recycling Network Nationwide


  • Toyota Motor North America (Toyota) has unveiled plans to broaden its battery recycling network through a strategic collaboration with Cirba Solutions, a leading company specializing in battery recycling materials and management.
  • This initiative signifies Toyota's commitment to enhancing its sustainability efforts by expanding the reach of its battery recycling program across the nation. The partnership with Cirba Solutions reflects Toyota's dedication to responsible environmental practices and the promotion of a comprehensive battery recycling infrastructure.







๐Ÿ”น Manufacturing Exodus from China Reshapes Shipping Dynamics


  • The global shift of manufacturing away from China is causing a significant upheaval in the shipping industry, particularly within Asia.
  • With manufacturers actively diversifying their supply chains, there has been a noticeable surge in demand for shipping routes facilitating the transportation of raw materials and intermediate products within the Asian region.
  • Emerging manufacturing hubs such as Vietnam, Bangladesh, and Cambodia are witnessing an influx of production activities. Consequently, there is a substantial movement of raw materials into these countries, highlighting the intricate adjustments and increased transportation needs arising from the evolving landscape of global manufacturing.


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