News from the Logistic Working Group LWG of the CICC - 31/08/2020

Dear Members and Friends,

The Logistic Working Group LWG of the CCIC is going to publish monthly news about the most important and significative info related to the logistics & transportation in China and worldwide.

Giving to all the CCIC members an inside eye from the operators & forwarders point of view.

Below some of the latest updates:

• According to a survey by Gartner, 33% of supply chain leaders have diversified manufacturing locations beyond China alone, or plan to do so by 2023. Learn more in our special report on Manufacturing trends: https://bddy.me/3hMdmMH
• IATA Economics’ Chart of the Week Five years to return to the pre-pandemic level of passenger demand long-term Air Passenger forecasts to take into account our evolving understanding of the trajectory of COVID-19 and its impact on the wider economy and air travel. Today’s chart shows the expected evolution of passenger demand over the next five years.
• Air freight rates have sunk to mid-March levels, while jet fuel prices rose 7% last week, putting more doubt on the viability and demand for cargo-only passenger aircraft services. The TAC index this morning shows air freight rates out of China, to both Europe and the US, sank nearly 10% in the week ending yesterday. But the biggest drops were out of Hong Kong, where prices fell 16% to the US, to $4.29, and 15% to Europe ($3.25).
• The Shanghai Containerized Freight Index (SCFI) comprehensive index continued its positive run this week, rising 5.4% to 1,055.13 as the major tradelines all registered gains. The Asia-US west coast component of the SCFI recorded another 8.5% jump in container spot rates, to $2,920 per 40ft, while rates to the US east coast increased by 4.7% to $3,459 per 40ft. Rates for the US west coast are now some 70% higher than a year ago, with US east coast rates ahead 24%.
• China's cross-border e-commerce volumes are surging, prompting new charter flights and freighter routes to keep up with demand.
• Alibaba's logistics unit, Cainiao Smart Logistics Network, said this week it would increase its charter flights to 1,260 over the next nine months. It chartered 200 flights during March and April, an increase from an average 100 to around 140 flights a month.
• ONE reports $167 million profit; sees volumes recovering. JOC Staff | Aug 03, 2020 3:18PM EDT. Ocean Network Express (ONE) said blank sailings were key to boosting ship utilization, with use on eastbound trans-Pacific services hitting 96 percent.
• On 27 July, the European Maritime Safety Agency (EMSA) and the European Centre for Disease Prevention and Control (ECDC) published a joint guidance to facilitate the gradual restart of cruise ship operations, seriously affected by the COVID-19 pandemic.
• From the number of port calls, it appears that in certain periods, particularly during March, April and May 2020 the analysis of the traffic from China to Europe is reduced by 27.1%, while from Europe to China, there is a more significant decrease of 47.8%.

Kind Regards,

CICC Team