International Logistics
NO.1 Central Europe Railway Freight Rates Surge Nearly 20%
Entering May, freight rates for China-Europe railway services have seen significant increases, with prices on European routes rising by 10%-20%. "The main reason for the price increase of China-Europe railway services is the rise in sea freight prices, which in turn is mainly affected by the Red Sea crisis."
Vice Secretary-General Hao Panfeng of the China Container Industry Association stated that most of the goods transported by China-Europe railway services overlap with sea freight. Due to the rise in sea freight prices and container shortages, many goods are turning to China-Europe railway services to secure cargo space. Signs of price increases for China-Europe railway services began as early as March and April. (First Financial Daily)
NO.2 China Supports Nigeria in Building Lekki Port Logistics Industrial Park
As a flagship project of China's Belt and Road Initiative in Nigeria, construction of the Lekki Port Phase II logistics industrial park commenced on Friday. The deep-water Lekki Port, constructed by China Harbor Engineering Company Limited, is Nigeria's largest seaport and one of West Africa's largest.
The port, which began construction in June 2020, is designed with an annual throughput capacity of 1.2 million standard containers. The logistics industrial park covers an area of approximately 40 hectares, equivalent to the size of the completed docks at Lekki Port, and is expected to be completed within two years.
NO.3 Attention! Severe Congestion at Major Ports Worldwide
Recently, due to the escalation of the Red Sea conflict, vessel diversions, and European weather conditions, multiple ports globally are experiencing congestion and delays. Shipping companies and their clients like ONE, Hapag-Lloyd, and X-Press Feeders have reported severe congestion at key ports in Asia. Singapore Port, for example, has seen average anchorage times for container ships reach 83 hours.
The main reasons include vessel diversions around southern Africa's Cape of Good Hope due to the Red Sea crisis, which increase sailing distances and times. Shipowners have had to deploy more vessels between Asia and Europe to meet customer demands.
Additionally, European customers' concerns about rising freight rates and anticipation of unexpected events have led to increased stocking to boost inventory, thereby driving demand. Adverse weather conditions are also a significant factor, affecting not only Asia but also several ports in the western Mediterranean region, such as Barcelona Port, Spain, near the Strait of Gibraltar, and Algeciras Port.
NO.4 Xiamen Port Launches First "Big Three Links" Sea-Air Combined Transport Express Line
On May 24th, under the supervision of Xiamen Customs, the vessel "Rui Long" carrying 86 containers of e-commerce goods departed from Xiamen Haitian Wharf. It took approximately 15 hours to reach Taipei Port in China, via Taoyuan Airport in Taiwan, using the sea-air combined transport method, marking the official opening of Xiamen Port's first "Big Three Links" sea-air combined transport express line.
The opening of this sea-air combined transport express line will effectively integrate air routes resources between Fujian and Taiwan regions. The overall transit time of sea-air combined transport rivals that of direct air transport, reducing transportation costs by 30%. It has opened a convenient, efficient, and cost-effective channel for cross-border e-commerce enterprises to enter Europe and the United States. (CCTV News)
NO.5 First Yulu "Zhengrihan" Rail-Sea Express Line Starts Operation
On May 21st, the first Yulu "Zhengrihan" rail-sea express line departed from Zhengzhou Bureau's Putian Station of China Railway Group, carrying over 1,000 tons of goods such as aluminum foil products and steel furniture to Huangdao Port in Shandong Province. From there, the goods were shipped to countries like Japan and South Korea via sea transport.
The Yulu rail-sea express line, with its convenient, fast, and cost-effective transportation advantages, moves the functions of ports and border ports forward, providing an efficient and low-cost green logistics channel for inland areas. The successful operation of the Yulu "Zhengrihan" rail-sea express line will not only open up a new golden passage for Henan to fully integrate into the "Maritime Silk Road" but also further promote the coordinated development of the Central Plains Urban Agglomeration and the Shandong Peninsula Urban Agglomeration.
NO.6 Six Listed Airlines Release Major Operating Data for April
On May 21st, six listed airlines domestically successively released their major operating data announcements for April 2024.
According to the announcement statistics, the six listed airlines collectively handled 397,100 tons of mail and cargo in April, a month-on-month decrease of 3.9%. Among them, domestic mail and cargo totaled 240,100 tons, down 5.3% month-on-month, while international and regional mail and cargo totaled 157,000 tons, down 1.8% month-on-month. Among the three major airlines, China Southern Airlines handled 146,600 tons of mail and cargo in April, Air China handled 114,100 tons, and China Eastern Airlines handled 81,500 tons. (Aviation Freight Express)
NO.7 $240 Million! Dubai Global Ports Group Collaborates with Saudi Ports Authority to Build Logistics Park
Dubai Global Ports Group and Saudi Ports Authority have begun constructing a new logistics park worth 900 million Saudi Riyals (approximately $240 million) at Jeddah Islamic Port. The park will feature state-of-the-art warehousing and distribution facilities, promoting trade in Saudi Arabia and the wider region.
Spanning 415,000 square meters, the facility includes 185,000 square meters of warehouse space and a multifunctional yard, making it Saudi Arabia's largest integrated logistics park. With over 390,000 pallet positions, the facility will provide customers with an efficient platform for seamless circulation of goods to and from Jeddah.
Market Related
NO.8 U.S. E-commerce Market Maintains Growth in First Four Months
According to Adobe Analytics data, the U.S. e-commerce market grew by 7% year-on-year in the first four months of this year, with sales totaling $331.6 billion. Adobe predicts that e-commerce sales in the U.S. market will exceed $500 billion in the first half of 2024, with a year-on-year growth rate of 6.8%.
In terms of product categories, electronic product sales amounted to $61.8 billion, up 3.1% year-on-year, while clothing sales reached $52.5 billion, up 2.6% year-on-year. Despite slight declines in these two categories' year-on-year growth, they still accounted for 34.5% of total U.S. online spending. Online grocery sales amounted to $38.8 billion, up 15.7% year-on-year. Adobe expects grocery sales to rival electronic products and clothing in revenue share over the next three years.
Another emerging category is cosmetics, which Adobe analyzed for the first time. The cosmetics category saw sales of $35 billion in 2023, up 15.6% year-on-year. This upward trend has continued since the beginning of this year, with consumers spending over $13.2 billion online in this category, up 8% year-on-year.
Looking at shopping channels, online shopping in the U.S. is shifting from desktop to mobile. During the 2023 holiday shopping season, sales on mobile devices exceeded those on desktops for the first time, reaching 51%. This trend is expected to continue, with mobile sales reaching $156.9 billion in the first four months of 2024, up 9.8% year-on-year. Adobe predicts that mobile sales will surpass desktop sales during this year's holiday shopping season, accounting for 52.5% of online sales.
NO.9 Poland's Auto, Motorcycle, and Parts Sales Increase by 18.7% in Q1
In recent years, sales of auto parts on e-commerce platforms have shown a steady growth trend. According to data from the Polish Central Statistical Office (GUS), sales of cars, motorcycles, and parts in Poland grew the fastest in the first quarter of 2024, with an 18.7% year-on-year increase. In addition, online sales of automobiles, motorcycles, and parts in February increased by 26.7% year-on-year, with online car purchases in March surging by as much as 75.7%.
Recently, eBay announced its financial performance for the first quarter. Once again, auto parts became the largest contributor to sales growth in the first quarter.