Today we will summarize the hot logistics news of the week, to facilitate the observation of industry trends and make adjustments to current industry strategies. Let’s take a look together.
01✦ Airline freight rates soar, bleak prospects for the US route in the second half of the year
The Persian Gulf and South American routes saw strong increases, with weekly increases of nearly 20%: the Persian Gulf route rate was $1,040/TEU, up 16.3% from the previous period; the South American route rate was $1,721/TEU, up significantly by 21.0% from the previous period. However, the volume of US route cargo did not increase, and the freight rate still remained stagnant. Under the impact of the US Federal Reserve’s interest rate hike and the increasingly severe inflation problem, consumer demand among Americans has been hit, and overall retail inventory remains high, with destocking still being an important issue.
02✦ Exports plummet in March, with 7,500 factories shut down
The global sluggish market demand has had a significant suppressive effect on the Vietnamese economy, and the sharp rise in Vietnam’s unemployment rate. According to institutional data, Vietnam faces double economic risks both internally and externally in 2023. In the first quarter, Vietnam’s exports fell by 11.9% year-on-year, with overseas sales shrinking by 14.8% in March.
03✦ Maersk suspends cargo reception, Dafeng levies fees
The February earthquake in Turkey caused severe damage to the Iskenderun Port, with cargo congestion and normal loading and unloading disrupted. In order to ensure the normal operation of logistics, a large amount of cargo was transferred to the nearby Mersin Port, and then continued to be transported through inland services. This has resulted in severe congestion at the Mersin Port, which has reached its maximum loading and unloading capacity. Maersk decided on March 31 to stop accepting spot bookings to and from Mersin Port until further notice, and is evaluating a diversion plan for the Izmir Port.
04✦ Hainan will “seal off the whole island”, what impact will it have on trade?
On March 29, the first press conference on “Prosperous Rise Is Just In Time-Progress and Achievements in Hainan’s Comprehensive Deepening of Reform and Opening-up in the Past Five Years” mentioned that Hainan will fully launch the island-wide closure operation. In order to support the construction of the Hainan Free Trade Port and further enhance the shopping experience for off-island passengers, starting from April 1st, in addition to the “postal delivery” and “return to the island for pickup” pick-up modes added to the tax-free shopping for off-island passengers in 2021, two new pick-up methods have been added: “guaranteed pick-up” and “instant purchase and pick-up”.
05✦ Maersk suspends imports and exports, takes emergency measures
Since the French strike earlier this year, protests in some areas have become almost uncontrollable, seriously affecting the normal operation of aviation, railways, and ports. In response to this situation, on April 3, Maersk announced that to ensure the normal operation of customer supply chains, given the current situation in France, Maersk will provide business relief measures to customers to minimize the impact on the supply chain. All comprehensive detention, demurrage and warehousing fees, except for the port of Le Havre, will be invoiced directly to customers.
