The latest news in the logistics industry 12/07/2023

This newsletter's summary

Figure of the week

24%

As a response to current market conditions, the China-Europe lane is facing significant shifts in capacity. A 24% reduction has been announced for December compared to 21% back in November.

Quote of the week

“The goal of logistics is to meet customer needs at the right place, at the right time, and at the right price.”

-Larry Zimmerman

Ocean Carriers Brace For A Challenging Year Ahead

The Xeneta Shipping Index (XSI) took a heavy dive of 4.7% in October, reaching 158.5 points, a significant 62.3% drop from November the previous year.

Despite older contracts from 2022 providing some financial cushion, the outlook for 2024 appears increasingly challenging for ocean carriers. Shippers, showing reluctance for long-term contracts in 2023, are expected to further press for short-term arrangements.

As the impact of these trends unfolds, industry analysts predict a tough year ahead, with carriers potentially facing significant financial losses amid ongoing market weaknesses and lower contract rates.

FedEx Boosts Infrastructure At Stansted And Dublin

FedEx UK & Ireland is enforcing its operations at Stansted and Dublin airports to meet growing e-commerce demand. A new import sorting machine at Stansted, costing €25 million, doubles the theoretical capacity to 6,000 packages per hour, featuring barcode scanning for data capture and technology to manage post-Brexit customs regulations.

FedEx has ramped up staffing levels in preparation for the peak season, expecting double-digit percentage volume growth.

Additionally, the company has invested in a new logistics facility near Dublin Airport, scheduled to be operational in early 2025, to accommodate future growth and streamline operations.

Weekly logistics trivia

James Brindley is an 18th-century English engineer who played a crucial role in the development of the British canal system during the Industrial Revolution. His innovative designs and engineering expertise helped create an extensive network of navigable canals, facilitating the efficient transportation of goods and raw materials.

James Brindley had several logistics strategies and characteristics, these inlcude:

• Problem-Solving Skills: Brindley faced various challenges in implementing canal systems, such as navigating difficult terrains and managing water resources.
• Project Management: Brindley demonstrated strong project management capabilities in planning, executing, and completing canal projects successfully.
• Innovation: He introduced novel engineering techniques and designs that contributed to the advancement of logistics and transportation during his time.
• Visionary Thinking: Brindley had a visionary outlook on transportation and logistics. He foresaw the potential of canals to transform the movement of goods and played a key role in establishing the canal network in Britain.

Brindley's contributions significantly improved logistics and transportation, making him a symbol of innovation and progress in the field to this day.

Railway Innovations: Automation, Expansion, and Sustainability

SBB Cargo in Switzerland has received regulatory approval for automated freight train brake tests, streamlining the preparation process and enhancing safety. Union Pacific is opening an international intermodal terminal in Phoenix to facilitate rail freight between Los Angeles Basin ports and the southwestern US.

Also, Polish company Cargounit has taken delivery of two Siemens Vectron locomotives for German operator Helrom, along with ordering two Siemens Smartron locomotives for Romania. Nordic Re-Finance's first ETCS-equipped RC4 locomotive has received authorization for operations in Sweden.

Moreover, Inland Rail in Australia has repurposed 20,000 tonnes of steel from its Narrabri-North Star Phase 1 project for future use and community donations. Finally, Maritime Transport has secured a three-year contract with Tesco to manage rail operations at the Daventry International Rail Freight Terminal.

Customs & Regulations

What to Anticipate When Transporting Goods to or from Russia and Belarus through Latvia?

Based on customs data, since the implementation of sanctions, Latvian customs have conducted 184,972 checks on cargo documents and 6,027 physical inspections.

Customs intervened in 8,396 instances to prevent the movement of sanctioned goods. In 2022, there were 114 criminal cases initiated for sanctions evasion, followed by 87 cases in 2023.

Given the aforementioned information, businesses involved in transporting goods to or from Russia, Belarus, or countries susceptible to sanctions circumvention should be aware of the repercussions described in this context.

???Until Next Week

DocShipper Team

Sources

Ocean Carriers Brace For A Challenging Year Ahead

FedEx Boosts Infrastructure At Stansted And Dublin

Railway Innovations: Automation, Expansion, and Sustainability

What to expect if you transport goods to (or from) Russia and Belarus via Latvia?