WEEKLY MARKET UPDATE 08/22/2024

This Newsletter's Summary

Figure of the week

15%?of global container shipping rates have dropped in the latest quarter, yet they are still 25% higher than rates from 2019.

Quote of the week

“Logistics is the ball and chain of armored warfare.”

?-Heinz Guderian

Gearbulk Expands Fleet with Two New Eco-Friendly Bulk Carriers

Gearbulk has ordered two 82,300 dwt?open hatch vessels from Huangpu Wenchong Shipbuilding, to be part of the G2 Ocean fleet. These vessels, sister ships to the Pulpmax no. 1-4 ordered earlier this year, will be delivered in October 2028 and January 2029.

The ammonia/methanol-ready Pulpmax vessels will feature eight holds/hatches, four electro-hydraulic jib cranes, and dedicated deck space for future alternative fuel tanks. Arthur English, CEO of G2 Ocean, highlighted that these new vessels will enhance their service offerings and meet evolving customer needs.

Gearbulk, a leader in the open hatch bulk shipping segment, operates a fleet of about 65 vessels through G2 Ocean.

Qatar Airways Invests in Africa: 25% Stake in Airlink

Qatar Airways Group has acquired a 25% stake in South African regional carrier, Airlink, to expand its operations across Africa. This investment will enhance their code-sharing partnership and support Qatar Airways’ Africa growth strategy.?Airlink, headquartered in Johannesburg, serves over 45 destinations in 15 African countries and offers a range of cargo services.

Qatar Airways’ CEO, Engr. Badr Mohammed Al-Meer, emphasized the importance of Africa to their business and expressed confidence in Airlink’s resilience and financial robustness. Airlink’s CEO, Rodger Foster, highlighted that this partnership will unlock growth, increase capacity, and expand marketing reach.

Qatar Airways currently flies to 29 destinations in Africa and has recently added new destinations like Abidjan, Abuja, Accra, Harare, Kano, Luanda, Lusaka, and Port Harcourt to its network.

Weekly logistics trivia

Jeff Silver?is a renowned logistics executive and co-founder of Coyote Logistics, a leading third-party logistics (3PL)?provider in the United States. His innovative approach to freight brokerage and supply chain management has significantly influenced the logistics industry.

Silver had several logistics strategies and characteristics, these are:

• Adaptability: Silver’s ability to adapt to the rapidly changing logistics landscape and integrate new technologies reflects adaptability, a crucial trait in logistics where unforeseen challenges often arise.

• Communication Skills:?His ability to effectively communicate and collaborate with various stakeholders, including customers, employees, and partners, facilitated the growth and success of Coyote Logistics.

• Innovation:?Silver’s vision for a technology-driven logistics company led to the development of advanced systems that improved efficiency and capacity in the freight market.

• Exploration and Navigation:?Silver’s strategic exploration of market opportunities and navigation through industry challenges showcased his ability to steer Coyote Logistics towards becoming a major player in the logistics sector.

To this day, Silver’s contributions are considered a landmark in the history of logistics, providing valuable insights into the complexities of freight management and influencing subsequent innovations and practices in the industry.

Turbocharged Turkish Exports: Rail Advancements Propel 13% Growth!

Turkish exports?have experienced a significant boost, thanks to the country’s expanding rail infrastructure. Between January and July 2024, exports via railways surged by nearly 13%, reaching 1.2 million tons of cargo.?This growth highlights the strategic importance of rail development in enhancing Turkey’s role in global trade.

The Turkish government has invested heavily in expanding and modernizing its rail network. This includes the renewal of conventional lines and the addition of new high-speed tracks, which have significantly increased the capacity for freight transportation.

Istanbul and surrounding provinces play a crucial role in railway transportation, accounting for 86% of total exports.?The improved rail connections to Europe offer substantial economic and environmental benefits, with at least eight freight trains operating daily between Turkey and Europe.

Customs & Regulations

The eFTI Regulation?aims to revolutionize freight transport within the EU by replacing paper-based documentation with electronic data across all transport modes, including road, rail, inland waterway, and air.

Key Benefits For Businesses:

• Annual savings of?€1 billion?in operational and administrative costs.
• Instant data sharing with partners for efficient logistics planning, vehicle loading, and routing.
• Improved multimodal transport planning and decision-making, leading to a more reliable supply chain.

For Authorities:

• Enhanced efficiency with streamlined compliance checks.
• Reduced enforcement costs due to fewer physical inspections.
• Higher quality data for better monitoring of policy implementation.

???Until Next Week

DocShipper Team: Thank you for following us.

Stay tuned for our upcoming market updates.

Sources

Gearbulk returns to Huangpu Wenchong for two more bulkers

Qatar Airways buys 25% stake in African carrier Airlink

Turkish exports benefit from rail development as volume grows by 13%

The eFTI Regulation