Global Aperture

A message from the World Bank on March 27 warns that global economic growth will fall to a three decade low of 2.2% per year by 2030 without major policy changes, including a reduction in trade costs. With orders for new freighters expected to be filled by 2027, more than 200 aged planes are expected to be retired by 2024 as air capacity continues to fall and the market is threatened with overcapacity. A new report shows that the impact of the EU Emissions Trading System (EU ETS), the FuelEU Maritime initiative, and the Energy Taxation directive are expected to significantly reduce the cost of green fuels relative to fossil fuels by 2025. US lawmakers introduced the Ocean Shipping Implementation Act, a follow up to 2022’s Ocean Shipping Reform Act, that aims to address the shortcomings of current laws.

Americas

USA: On March 22, US lawmakers proposed the Ocean Shipping Antitrust Enforcement Act, which would remove foreign ocean carriers’ previous exemption from antitrust laws and address unfair practices, including unexplained schedule changes, rate increases, and excessive fees. In a press release, the World Shipping Council opposed these changes, citing the need for vessel sharing arrangements between ships to benefit consumers.

A new report shows a 50% year-over-year increase in cargo theft for food and beverage items in the US during the month of February, currently sitting at the top spot for stolen commodities.

MEXICO: While cargo theft has declined in Mexico by 29% year-over-year, food and beverage cargo remains among the most stolen commodities.

CANADA: The Canadian government announced an 18 million Canadian Dollar investment in a new rail park in Winnipeg that will serve as an intermodal transfer hub to improve rail and land network infrastructure and ease cargo flows between Canada, Mexico, and the US.  

Asia-Pacific

China: Piles of empty containers in China’s major ports serve as a bleak economic indicator in the midst of dwindling export volumes`, as Yantian port in Shenzhen holds the highest number of empties in three years and Yangshan port in Shanghai leases space from the neighboring Taicang for excess storage.

Bangladesh, India: Shipments from a new land-sea corridor out of Bangladesh via India began following a bilateral agreement between the two countries, with the journey from Bangladesh to Delhi via truck coming in at five days. With bookings for readymade garment exports up 15% year-over-year for the first half of 2023, improvements to road access between the two countries has provided a shorter and more economical trade route. To further improve regional connectivity, Bangladesh has offered the use of its ports in Sylhet and Chittagong to India.

Australia: On March 24, Hutchinson Ports terminals in Sydney and Brisbane announced an increase in landside fee tariffs and storage charges. The Container Transport Alliance Australia opposed this measure, arguing that it penalizes the use of high-productivity vehicles.

Europe, Middle East & Africa

EU: In response to increases in cyber-attacks in the transportation sector in recent years, the EU’s cybersecurity agency ENISA announced a new directive that will require the logistics industry, including  airports, airlines, traffic control authorities, ports, and more to boost their cybersecurity and report all cyberattacks in order to defend against these attacks.

France: Strikes over pension reform in France have hobbled much of the public sector. As the impact on major ports grows, KWE sources indicate that many major carriers have opted to avoid the ports of Le Havre, Marseille, and Fos-sur-Mer until further notice.

Germany: Transport union strikes in Germany have led to major disruptions at the country’s rail lines and airports. On March 22, shippers were advised to skip the Ports of Hamburg and Elbe when port workers joined the strikes with a 48-hour work stoppage of their own. Negotiations have been underway since March 27.

Russia: Western sanctions have led to the development of a new land bridge between China and Russia, cutting up to 2,000 km from the journey between Moscow and Beijing using this new trade route.

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