A Bumpy Start
Greetings Readers! ????
Our supply chains are continuously evolving ?? and every day we find ourselves at the forefront of exciting developments ?? that shape the future of trade and logistics. We aim to ultimately bring to you a collection of news pieces and articles ?? that justify the aforesaid perception of the supply chain ecosystem.
2024 has started with a bang - a big one - with the Red Sea issue escalating by the day. And it brings with itself a bag full of complications for global shipping with increased ETAs and even higher costs. This year's first newsletter brings to you a few pieces highlighting the issue, and some more.
Ocean freight prices experienced a sudden surge on Thursday as more vessels diverted from the Red Sea. Reports indicate that logistics managers received quotes of $10,000 per 40-foot container for the Shanghai-to-U.K. route, a substantial increase from the previous week's rates of $1,900 for a 20-foot container and $2,400 for a 40-foot container. Truck rates in the Middle East have also more than doubled.
India's burgeoning private ports sector has spurred discussions within the Centre about instituting a national ranking for all ports, numbering around 230. This initiative aims to assess the efficiency of major ports, owned by the central government, against non-major ports, under private and state government ownership.
Leading shipping companies, including Maersk and Hapag-Lloyd, diverted from Red Sea routes due to Houthi threats, causing disruptions in Suez Canal trade. Instead they have rerouted via southern Africa, a longer and more expensive journey. The canal is the quickest sea route between Asia and Europe.
领英推荐
Following recent attacks on commercial vessels in the Arabian Sea, the Indian Navy has strategically deployed three stealth-guided missile destroyers—INS Mormugao, INS Kochi, and INS Kolkata—across various areas to ensure a formidable presence and act as a deterrent. The drone assaults on two vessels en route to India, each carrying Indian crew members, have sparked concerns about maritime trade safety amid heightened tensions due to Israel's conflict in Gaza.
In the latest update, Ajay Bhalla (Union Home Secretary), after a meeting with the All India Motor Transport Congress (AIMTC) on 2nd January, gave assurance that the law will not be implemented without extensive discussion and consultation with the road transportation industry bodies and other stakeholders. Bhalla also appealed for the drivers in protest to return to work and wait for further updates.
The Ministry of Commerce and Industry announced recently that 'Make in India' has achieved "significant" milestones and is now concentrating on 27 sectors as part of 'Make in India 2.0.' DPIIT is overseeing action plans for 15 manufacturing sectors, while the Department of Commerce is managing 12 service sectors. The ministry highlighted that the selection of these 24 sub-sectors considers the strengths and competitive advantages of Indian industries, the necessity for import substitution, the potential for export, and increased employability.
Indian Railways must double its modal share in freight to 55% for India to achieve global economic competitiveness, according to Railway Minister Ashwini Vaishnaw. "On aggregate, we should be reaching 55% rail and 45% road. The minister said adding that by doing so, the cost of logistics will reduce to anywhere between 7.5-8.0% of the GDP. The focus is on reaching 80-85% rail share for heavy cargo like coal, cement, and steel, while parcels should see a 50-50 split between rail and road, he said.