📌Weekly Logistics Highlights: Aircraft Deals, E-commerce Expansion, Smart Delivery Initiatives, and Global Developments Unveiled

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In the realm of freight forwarding, 'cabotage' refers to the transport of goods or passengers between two places in the same country by a vessel or vehicle registered in another country.

Hong Kong, China

🔹Cathay Pacific Investment:

• Cathay Pacific, Hong Kong's flagship carrier, allocates HK$21 billion for the acquisition of 6 Airbus planes, with an option to purchase an additional 20.
• The procurement includes an initial order for six A350F freighters, scheduled for delivery from 2027, complementing a previous cost-effective agreement for 32 Airbus aircraft.

🔹Aviation Sector Recovery:

• Hong Kong's aviation sector experiences a robust recovery, surpassing initial expectations, as highlighted by IATA Chief Willie Walsh.
• Walsh commends the considerable progress in the sector, attributing it to strategic initiatives aimed at boosting air traffic into both the city and the Greater Bay Area.
• Notable measures include efforts to enhance cooperation and connectivity, such as linking passengers in Macau to the airport via a dedicated bus route on the mega bridge.

 Shenzhen, China

🔹JD.com's Global Expansion:

• China's e-commerce giant, JD.com, strategically expands its express delivery service to cover North America and Europe.
• The consumer-oriented one-way international delivery service is now operational in the dynamic cities of Shenzhen and Guangzhou, showcasing JD Logistics' gradual global expansion and increased coverage across Chinese urban centers.

Guangzhou, China

🔹Smart Last-Mile Delivery Partnership:

• Guangzhou Huadu District collaborates with JD Logistics, forging a strategic partnership at the Future Automotive and Mobility Conference hosted by the World Economic Forum in Guangzhou.
• The collaboration focuses on the implementation of smart last-mile delivery solutions and jointly constructing a demonstration zone for autonomous delivery vehicles.
• Per the agreement, JD Logistics will deploy its autonomous delivery vehicles in Huadu District, catering to the specific needs of individuals, institutions, and enterprises.
• The initiative aims to pioneer contactless urban delivery models, with the potential for replication in other regions.

Shanghai, China

🔹China Cargo's New Route:

• China Cargo Airlines enters into a new handling contract with Worldwide Flight Services (WFS) for its upcoming Shanghai-Miami route.
• The route, set to commence with three Boeing 777 freighter flights per week, marks a significant milestone as the first service by a Chinese airline to Miami.
• WFS secures a three-year contract to handle various cargo types, including high volumes of e-commerce shipments, perishables, seafood, and general goods.

🔹Alibaba's Cross-Border Expansion:

• Alibaba, the e-commerce behemoth, demonstrates a substantial commitment to cross-border e-commerce by establishing its first 'digital trade service base' in Shanghai.
• The new service base aims to provide a comprehensive, one-stop solution for local merchants, further solidifying Alibaba's presence in the dynamic market.
• Simultaneously, Alibaba injects a substantial amount, US$634 million, into Lazada, reinforcing its expansion efforts in Southeast Asia.

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

🔹GLP and Qingdao Haier Logistics Collaboration:

• GLP, a leading logistics infrastructure company, collaborates with Qingdao Haier Logistics on the development of a distribution center in Shanghai.
• The partnership aims to optimize distribution processes and enhance logistics efficiency in the region.

Vietnam

🔹JD LOGISTICS Operations in Vietnam:

• JD LOGISTICS continues its strategic deployment of logistics supply chain services in Vietnam, facilitating Chinese brands' expansion into the local market.
• Operating a series of self-operated warehouses and collaborative facilities, JD LOGISTICS aims to support and serve the growing demand of local consumers in Vietnam.

🔹Hải Phòng's Ambitious Plans:

• Hải Phòng in Vietnam unveils ambitious plans to evolve into an international logistics center by 2050.
• The new master plan, approved by Deputy Prime Minister Trần Hồng Hà, positions Hải Phòng as a major seaport hub in the region and globally, with three key pillars of development guiding its growth.

South Korea

🔹Ericsson's 5G Deployment for CJ Logistics:

• Swedish network vendor Ericsson deploys a private 5G network at a 40,000 square-meter CJ Logistics warehouse in Icheon City, South Korea.
• The deployment, initially at the Ichiri center, is intended to scale to 400 warehouse facilities in South Korea and 40 additional sites globally.
• CJ Logistics reports a 20 percent increase in productivity at the Ichiri center since the implementation of the private 5G network.

🔹Korean Air's Pending Takeover and Regulatory Scrutiny:

• Korean Air's proposed takeover of Asiana Airlines faces regulatory scrutiny, particularly from the European Commission.
• The European Commission extends its deadline for assessing the impact of the merger, with a decision expected in February.
• The outcome of the regulatory review will significantly influence the future landscape of South Korea's aviation sector.

🔹ESR's Facility Sale in South Korea:

• Industrial real estate giant ESR completes the sale of a fully-leased data center and logistics facility outside Seoul, South Korea.
• The facility, known as the Ilsan Distribution Centre, represents a strategic move for ESR Kendall Square, contributing to its overall portfolio management and investment strategy.

America

🔹Yellow Corp.'s Shutdown and Industry Impact:

• Yellow Corp., a longstanding trucking company with a 99-year history, ceases operations, resulting in the layoff of all 30,000 workers.
• The closure follows a protracted battle with the Teamsters union, which represents about 22,000 drivers and dock workers.
• The Teamsters union, citing non-contributions to pension and health insurance plans, cancels a previously threatened strike, granting the company an additional month to meet its financial obligations.

🔹Bolloré Logistics USA Expansion:

• Bolloré Logistics USA expands its presence with the opening of a new distribution center in Ontario, California.
• The 111,000 sq. ft site is strategically located near California's Ontario International Airport, positioned 50 miles away from the bustling ports of Los Angeles and Long Beach.
• The new facility aims to support Bolloré Logistics' growth objectives, particularly in serving the luxury and beauty industries.

 Bangladesh

🔹Maersk's Warehousing Expansion:

• Maersk, the integrated logistics company, embarks on expanding its warehousing footprint in Bangladesh with the construction of a new 100,000 sq. ft facility in Chattogram.
• The strategically located facility, near the Chattogram Port, is well-connected to the Dhaka-Chattogram Highway, providing seamless access for Bangladesh's garment exporters based in nearby manufacturing hubs.

🔹Logistics Strength Improvement:

• Bangladesh makes significant progress in logistics strength, climbing four positions to rank 35th among the 50 most promising emerging logistics markets globally.
• The improvement is attributed to the country's impressive performance in both domestic and international logistics opportunities, as indicated by the 2023 Agility Emerging Markets Logistics Index.

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