WEEKLY MARKET UPDATE 02/29/2024
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This newsletter's summary
Figure of the week
256%
According to the UNCTAD, the rate of containers have more than tripled in Europe due to shortage and current crisis.
Quote of the week
“The line between disorder and order lies in logistics…”
-Sun Tzu
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UNCTAD Report Unveiling Future Shipping Disruptions
Reaching the end of February, both the Suez and Panama canals?have registered the highest drops for years in their overall traffic. With the armed attacks and missile destruction of vessels in the Red Sea and an unpredictable drought in the Panama Canal, both pathways are now described by the UN Conference on Trade and Development (UNCTAD)?to have lost almost half of their traffic.
On the other hand, container shortages, and costly, timely, and dangerous pathways such as the Cape of Good Hope put the emphasis on this trend and put a strain on fragile developing businesses and economies.
2024 might be the year for air cargo
领英推荐
Glyn Hughes, Director General of the International Air Cargo Association (TIACA) was interviewed at the Association’s Media Day where he said that growth was anticipated for 2024, probably in the second half of the year.
Some factors like huge drops in traffic at Panama and Suez canals, shortages in containers, and the evergrowing sea freight rates?tend to nudge stakeholders into prioritizing air transport for their cargo.
On top of that, continuous growth in cross-border e-commerce?needs through TikTok shop and Temu represent a huge potential new market for?air travel.
Weekly logistics trivia
George Stephenson, often referred to as the "Father of Railways," was an English engineer and inventor who played a pivotal role in the development of the world's first inter-city railway line, the Liverpool and Manchester Railway, which opened in 1830. His pioneering work in designing steam locomotives, such as the famous "Rocket," and constructing rail infrastructure laid the foundation for the expansion of rail networks globally.
Stephenson had several logistics strategies and characteristics, these include:
By promoting the use of railways for transporting goods, Stephenson revolutionized transportation and logistics, enabling faster, more reliable, and cost-effective?movement of freight over long distances.
A new railway to connect Canada, USA and Mexico
A long-term agreement has been renewed: the Canadian Pacific Kansas City (CPKC)?and Fastfrate Group?have indeed struck a new 5-year agreement to enhance the railway line connecting North America and Mexico.
This new agreement brings about 200 more containers for this railroad and a capacity of 100 additional containers in Mexico due to staggering demand in the South American hub. With 200 containers already added in 2023, the total investment of 500 containers will be a partial solution to the container shortage and create more dynamism in secluded areas such as deserts.
Customs & Regulations
The European Union?is set to enforce a new rule on customs regulations?for imported goods. As of 2027, the customs value, duties, and rates will be easier to calculate. These pieces of information will be BVI (binding customs value information), BTI (binding tariff information)?and BOI (binding origin information).
The Customs Office will determine which information is considered binding and applications will be processed through an electronic system that should be up and running by then.