News from the Logistic Working Group LWG of the CCIC - 23.06.2020

22 June 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:

For ALL inbound cargo directly destined to Beijing/Zhengzhou/Tianjin airports, customs require disinfection. For cargo transiting via such airports, no disinfection is required.
According to Alphaliner, the idle containership fleet stood at 2.72 Million Teu at the end of May, reaching an all-time high of 11.6% of the overall fleet capacity. Maersk and MSC accounts for the largest portion of the idle fleet, counting 845,000 TEU.
According to London’s Air cargo news, the overall air cargo capacity is 26 percent down compared to last year. The latest figures of the TAC index shows that the airfreight rates out of Shanghai maintains a downward trajectory for all major routes (Europe and America), even though the numbers are still higher than last year’s ones.
South China Morning Post reported that China export declined 3.3% in May, while import plunged 16.7%, compared with a year earlier. The export figures are better than expected by most of the analysts and the result is still due largely to the continuous and strong export of medical equipment and supplies.
Airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1%. Revenues will fall 50% to $419 billion from $838 billion in 2019. Although losses will be significantly reduced in 2021 from 2020 levels, the industry’s recovery is expected to be long and challenging. This makes it crucial for governments and airlines to adopt measures based on global guidelines for a harmonized restart.
Domestic Asia Pacific recovery points to improving demand in May, IATA said. The signs of a rebound in domestic air traffic have been observed in Asia Pacific markets such as Korea, Vietnam, China and New Zealand. Chinese airlines maintained a skeleton network throughout the crisis. Despite the pandemic being mostly under control in China since mid-March, the domestic market recovered relatively slowly. More generally in many domestic markets, airlines adjusted their fares down (c. -25%yoy in May) to stimulate demand on internal routes.
Copenhagen, 13 May 2020 – MSK Guidance for 2020. “We expect volumes in Q2 to decrease across all businesses, possibly by as much as 20-25%. 2020 is a challenging year, but as we proactively respond to lower demands and show progress in our transformation and financial performance, we are strongly positioned to weather the storm” says Søren Skou – MSK CEO.
A bolstered liquidity position / CMA. In these unprecedented economic and health conditions, the Group continues to proactively strengthen its cash position. A syndicated loan of EUR 1.05 billion was signed with a consortium of three banks (HSBC, BNP Paribas, and Société Générale). The loan has an initial one-year maturity and an extension option for up to five additional years. This loan, 70% guaranteed by the French State, is part of the scheme set up by the French government in response of the Covid-19 crisis and validated by the European Commission.
The CMA CGM Group sets an objective to become carbon neutral by 2050. The Group has already reduced its total CO2 emissions by 6% in the year 2019 and this announcement comes as a logical step: the year 2020 will also see the launching of the new 23,000 TEUs LNG-powered vessels, confirming CMA CGM's ambition for the energy transition. The bulbous bow located at the front of the vessel strongly reduces the ship’s resistance to waves. Its shape varies according to the vessel speed. With this innovative design we can save even more fuel and reduce GHG emissions.
IoT Standards for Container Connectivity. IoT will usher in a new era of efficiency in global trade. Smart containers that share information with multiple stakeholders. Digital Container Shipping Association (DCSA) is a neutral, non-profit group founded by major ocean carriers to digitize and standardize the container shipping industry. With the mission of leading the industry towards systematic collaboration, DCSA drives initiatives to make container transportation services transparent, reliable, easy to use, secure and environmentally friendly. DCSA’s open source standards are developed based on input from DCSA member carriers, industry stakeholders and technology experts from other industries. DCSA member carriers include: MSC, Maersk, CMA CGM, Hapag-Lloyd, ONE, Evergreen, Yang Ming, HMM and ZIM.
From bikes to blockchain: Shipping industry goes digital in lockdown. COPENHAGEN (Reuters) - The coronavirus lockdown has accelerated a digitalization drive in a global shipping and logistics sector that still routinely delivers many documents by bike messenger in some countries, according to industry leaders. The participation of key companies in the TradeLens platform, launched in 2018 by Maersk and IBM (IBM.N).
(Bloomberg) — China’s trade surplus surged to a record in May as exports fell less than expected, helped by an increase in medical-related sales, and imports slumped along with commodity prices. Exports decreased 3.3% in dollar terms from a year earlier, beating economists’ estimates, while imports plunged 16.7%.