FIATA E-Flash No. 215 – 15 January 2020
FIATA AND MEMBERS
Welcoming Members back and wishing them a great 2020
We want to take this time to welcome all our members and partner stakeholders back from the holidays and wish them a great start for 2020.
Everyone here at FIATA looks forward to connecting with you and continuing to work towards our industry’s future. We once again thank you for your support and may this year be your best yet.
Africa’s free-trade area needs business support to take off
Speaking at the recent FIATA 2019 congress in Cape Town, international expert in trade, customs and trade facilitation Willie Shumba said that these are business rather than political issues.
While he was speaking specifically in the context of the private sector logistics and supply chain sectors, it is imperative that businesses in all sectors and industries ensure that they have a seat at the AfCFTA table.
For more details, please visit: https://www.businesslive.co.za/bd/opinion/2020-01-08-africas-free-trade-area-needs-business-support-to-take-off/
ICAO FIATA DG Training Programme – Promotional Offer for DG Training Centers
FIATA wishes to extend an invitation to training organizations which offer Dangerous Goods by Air Training, to consider the benefits of becoming a Recognized ICAO FIATA DG Training Centre. Those interested Training Centers which come forward and submit an application prior to February 28th, 2020 will not be required to pay our Application Fee. A savings of 450 US Dollars.
We would be pleased to provide you with more information on the benefits of becoming an ICAO FIATA DG Training Center, simply send us an email at eid@fiata.com, with your contact details and a member of our training department will be in touch with you shortly.
For more details, please visit: https://us8.campaign-archive.com/?u=e6dd469f1a328320ed2810636&id=06869bef7e
WORLD ECONOMY
Freight Stakeholders: USMCA Is ‘Victory’ for Industry
Freight stakeholders expressed strong support for the recent agreement reached by congressional Democrats and the Trump White House on a new trade deal with Canada and Mexico, as the U.S. House readies a vote on the deal before the end of the year.
“The vast majority of trade in North America moves on truck, with $772 billion worth of goods crossing our borders with Mexico and Canada every year. USCMA will provide the certainty our industry needs while ensuring the United States remains competitive on the world stage,” Spear said.
For more details, please visit: https://www.ttnews.com/articles/freight-stakeholders-usmca-victory-industry
South Africa logistics sector fortifies the economy
As South Africa’s industries splutter in the face of another looming recession economists believe the logistics and freight has what it takes to spark growth in Africa’s most developed economy.
FIATA recently held its 2019 World Congress in Cape Town this past October hosted by the South African Association of Freight Forwarders (SAAFF). It attracted 800 delegates and speakers from Saudi Customs, Harvard, the Economists and many more to discuss sustainable solutions within the freight forwarding and transport sector. Our next FIATA World Congress is to be held in Busan, South Korea in October 2020.
For more details, please visit: https://www.dw.com/en/south-africa-logistics-sector-fortifies-the-economy/av-51926000
South Korea slams logistics firms in HHI case
Six major logistics companies have been fined a total of $5.8 million by South Korea’s Fair Trade Commission (FTC) for colluding to fix prices, according to reports. CJ Logistics, Korea Logistics, Sebang, KCTC, Global and Dongbang were all accused of fixing proces between 2005 and 2018 in their delivery contracts for Hyundai Heavy Industries (HHI), the country’s biggest shipbuilder.
The case dates back to when HHI changed the way it chose logistics firms for the delivery of heavy products, including ship deck houses and ship engines casings used for ship assembly.
For more details, please visit: https://www.porttechnology.org/news/south-korea-slams-logistics-firms-in-hhi-case/
GIC pays A$366M to boost stake in A$2B Aussie Logistics Trust
GIC has entered 2020 with an A$366.1 million ($253 million) logistics investment, as the Singaporean sovereign wealth fund bets on warehouses for the New Year.
The acquisition comes just over a year after the unlisted trust was set up as a joint venture between GIC and Australia’s Dexus REIT, with the sovereign wealth fund initially taking a quarter stake in the investment entity with put and call rights to acquire an additional 24 percent by June this year.
For more details, please visit: https://www.mingtiandi.com/real-estate/logistics/gic-pays-a366m-to-ramp-up-stake-in-a2b-aussie-logistics-trust/
Amazon Logistics volume will surpass UPS and FedEx by 2022, Morgan Stanley says
Amazon Logistics parcel volume will reach 65% of total U.S. Amazon orders by 2022, according to analysis from Morgan Stanley based on parcel data from roughly 70,000 Amazon transactions released in a research note Thursday.
Amazon’s 2019 parcel volume was still lower than that of FedEx (3 billion) and UPS (4.7 billion), but at the current speed of growth, Morgan Stanley expects Amazon Logistics will overtake the legacy players in 2022.
For more details, please visit: https://www.supplychaindive.com/news/amazon-logistics-volume-surpass-ups-fedex-2022-morgan-stanley/569044/
SEA FREIGHT
In the zone at Jebel Ali port
With a multi-tier parking facility holding around 27,000 car equivalent units (CEU), Jebel Ali is the biggest port in the Middle East and the 11th largest worldwide. The port has four terminals connecting to more than 150 other ports through 80 weekly services, and its activity accounts for 26.1% of Dubai’s GDP. In 2018, 82% of Dubai’s automotive trade passed through Jebel Ali, worth $31.6 billion in vehicles, tyres, parts and accessories.
Moreover, this trade is on an upward trend. UAE’s automotive market is set to increase by 35% between 2017 and 2021, according to estimates from the Dubai Chamber of Commerce and Industry. Jebel Ali will also benefit in its role as a point of entry to other nations in the region; automotive trade in the Gulf Corporation Council (GCC) countries was valued at $55 billion in 2018.
For more details, please visit: https://www.automotivelogistics.media/ports-and-processors/in-the-zone-at-jebel-ali-port/39838.article
Adani Group forays into logistics with ₹2.96 bln acquisition of Snowman Logistics
Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ Ltd, signed definitive agreements to acquire 40.25% stake in Snowman Logistics Ltd from Gateway Distriparks Ltd, the company said in a statement. Snowman is market leader in cold chain logistics with over 30% of capacity amongst integrated organised cold chain service providers in India.
The acquisition gives Adani Logistics platform to double its capacity in the next five years. The buyout is in line with the firm’s strategy to move from port gate to customer gate.
For more details, please visit: https://www.freshplaza.com/article/9178088/india-adani-group-forays-into-cold-chain-logistics-with-2-96-bln-acquisition-of-snowman-logistics/
Container ship COSCO PACIFIC fire, interrupted voyage
Container ship COSCO PACIFIC while en route from Port Klang Malaysia to Ngava Sheva western India reported fire in container or containers, in cargo hold.on Jan 4, being under way in Arabian sea off southwest Indian coast. The ship interrupted scheduled voyage and headed for Colombo, arriving there in the morning Jan 6.
She was berthed, containers on fire are to be offloaded, ship’s to be under constant monitoring until completing inspection. The ship is deployed on SEA-India-Pakistan service, quite a number of shippers are to cope with delays and schedule interruptions. As of morning Jan 7, COSCO PACIFIC was still berthed at Colombo.
For more details, please visit: https://maritimebulletin.net/2020/01/07/container-ship-cosco-pacific-fire-interrupted-voyage/
Shipping industry proposes mandatory $5bn R&D fund for decarbonisation
Leading industry organisations are proposing a $5bn R&D fund to help reduce emissions from shipping, with financing come through a bunker levy.
The $5bn funding over 10 years would come from shipping companies across the globe for a new non-governmental Research & Development organisation to pave the way for decarbonisation of shipping. The aim would to accelerate the development of zero emission vessels by the early 2030’s in line with the IMO’s targets for CO2 emission reductions from shipping.
FIATA highlighted in its position, advising policy makers to not only focus on enacting legislation that will set GHG target emissions for which the industry must remain compliant. But to look at the glass half full and enact policy that would enable infrastructure development, technological research, and tracking procedures leading to enhanced connectivity and efficient transport operations that would in turn stimulate economic growth.
For more details, please visit: https://www.seatrade-maritime.com/regulation/shipping-industry-proposes-mandatory-5bn-rd-fund-decarbonisation
AIR FREIGHT
Air Cargo Demand Continues to Shrink Whilst Capacity Increases
IATA has released data for global air freight markets showing that demand, measured in freight tonne kilometres (FTKs), decreased by 1.1% in November 2019, compared to the same period in 2018. This marks the thirteenth consecutive month of year-on-year declines in freight volumes.
Despite the decline in demand, IATA says that November’s performance was the best in eight months, with the slowest year-on-year rate of contraction recorded since March 2019. In part, November’s outcome reflects the growing importance of large e-commerce events such as Singles Day and Black Friday.
Swissport and Lufthansa renew cargo handling contract for Belgian airports
The agreement – which is valid from December 2019 until the end of 2024 – covers warehousing, cargo ramp transport and the handling of mail, pharmaceuticals, valuables and general cargo for Brussels Airlines, Lufthansa and Austrian Airlines at the two Belgian hubs.
Swissport Belgium handles more than 550,000 tons of air cargo per year and its ground services division serves 7.5 m passengers annually. It is due to complete the expansion of its Brussels facility, which will enable it to increase its handling capacity.
For more details, please visit: https://www.aircargonews.net/airlines/swissport-and-lufthansa-renew-cargo-handling-contract-for-belgium-airports/
A tough time for cargo at Dutch airports as government eyes new tax on freighters
Amsterdam Airport Schiphol must find ways to add more freighter flights to relieve a “critical” situation, chief executive and president of Royal Schiphol Group Dick Benschop said yesterday in his New Year speech.
Last month, Air Cargo Netherlands president Ivo Aris warned of another cloud on the horizon for Dutch air freight: the Dutch government has indicated it would introduce a flight tax by next year, which will raise €11m from freight. It plans to tax freighters leaving Schiphol or Maastricht, but raise no tax from belly cargo.
For more details, please visit: https://theloadstar.com/a-tough-time-for-cargo-at-dutch-airports-as-government-eyes-new-tax-on-freighters/
RAIL AND ROAD FREIGHT
East-West balance on New Silk Road can never be reached
Traditionally, the volumes of rail freight going from east to west are higher than in the opposite direction. Industry players have worked hard to restore this balance with success. But, the balance will never be 50-50, warns the Infrastructure Economics Centre.
In the year 2018, the allocation of Eurasian transit flows in westward direction represented 56,6 per cent of the total traffic (for loaded containers), while eastbound traffic represented 43,4 per cent. This is impressive. Whereas operators considered eastbound traffic a major challenge, it is filling most of its trains heading towards the east nowadays.
This topic took center stage at FIATA’s Region Africa Middle East Field meeting held in Beirut, Lebanon. Lebanon’s 2030 vision is to create industrial zones spread across the country and a dry port in the Bekaa Valley. Several speakers at the FIATA RAME conference in Beirut, which attracted an international crowd, said the new plan would connect Lebanon to China’s land and maritime Silk Road.
For more details, please visit: https://www.railfreight.com/specials/2020/01/07/east-west-balance-on-new-silk-road-can-never-be-reached/
Siemens eHighway promises sustainable road freight transport
Siemens own calculations state that, as a result of this eHighway model, there is the potential for 7 million tons of CO2 being saved per year if just 30% of truck traffic on German highways is electrified and supplied with renewables.
After all the years of development the system has been honed to work very efficiently too. For example, the pantograph design, which can connect at any highway speed, is said to have an 80% efficiency level when it’s in contact with the overhead lines.
For more details, please visit: https://www.techradar.com/news/siemens-ehighway-promises-sustainable-road-freight-transport
INNOVATIONS
Y Combinator-Backed Egyptian Logistics Startup Acquires Local Competitor
Cairo-based truck logistics marketplace Trella, which was founded by a former Uber executive, has acquired Egyptian rival Trukto to create the country’s largest platform of its kind.
Once the two companies are fully merged, a network of around 10,000 truckers will operate across the country, according to Menabytes. Trella’s digital platform connects shippers and carriers in real-time, using data to optimize drivers’ routes and increase the volume of loads. This reduces wasted space and costs for both sides of the shipping transaction.
For more details, please visit: https://moguldom.com/244610/y-combinator-backed-egyptian-logistics-startup-acquires-local-competitor/
Logistics startup Rivigo raises debt fund of Rs 25 Cr
Months after becoming a unicorn, logistics startup Rivigo raised $3.4 million in debt funding from Trifecta Capital. The Gurugram-based startup fund raise also comes close on the heels of its plans of raising Rs 141.97 crore ($20 million) in its Series F round.
Founded by Gazal Kalra and Deepak Garg, Rivigo had also launched RaaS (Relay-as-a-Service) to offer the benefits of relay trucking to millions of fleet owners in India to address challenges of truck driver shortage in this space.
For more details, please visit: https://yourstory.com/2020/01/logistics-startup-rivigo-funding-national-freight-index
Jordan Customs to pilot IBM, Maersk’s logistics blockchain platform
On December 16, the Jordan Customs Department announced a pilot of the TradeLens blockchain supply chain platform. The solution is a joint initiative from IBM and Maersk. Under the agreement, a pilot zone will be set up in the Aqaba Customs Center to transport goods through the Aqaba Container Terminal using the TradeLens platform.
The customs department aims to leverage the blockchain solution to simplify the exchange of goods, automate documentation and increase co-operation and communication between counterparties.
For more details, please visit: https://www.ledgerinsights.com/jordan-customs-ibm-maersk-logistics-blockchain-tradelens/
WiseTech Global Ltd Acquires Leading Solutions Provider in Switzerland
Global logistics solutions group, WiseTech Global (ASX:WTC) (FRA:17W) (OTCMKTS:WTCHF), today announced the acquisition of SISA Studio Informatica SA (SISA), a leading customs and freight forwarding solutions provider in Switzerland.
Headquartered in Lugano, SISA is a Swiss market leader in providing customs and logistics solutions including customs clearance, freight forwarding and bonded warehouse management. SISA’s customers include DHL Logistics (Schweiz) AG, Fiege Logistik (Schweiz) AG, FedEx, Post CH AG, Agility Logistics AG, F. Hoffmann-La Roche AG, and many other exporters, freight forwarders, and logistics service providers.
For more details, please visit: https://menafn.com/1099521585/WiseTech-Global-Ltd-ASXWTC-Acquires-Leading-Solutions-Provider-in-Switzerland-SISA-Studio-Informatica-SA