Bangladesh erupts in nationwide protests, affecting the Internet and ports, and reducing prices on four major routes, especially the West Coast of the United States! 丨 Foreign Trade News Express
Bangladesh protests break out, affecting internet and ports
Recently, large-scale student demonstrations broke out across Bangladesh, paralyzing the national logistics system. In addition, customs clearance and (C&F) agents at Dhaka Airport held a three-day strike to protest the introduction of the express delivery system.
Protests are intensifying, with protesters demanding the abolition of the country's "civil service" quota system and the implementation of merit-based recruitment.
Over the past few days, students have blocked roads across the country, paralyzing traffic in large parts of Dhaka and several major cities. As a result, no vehicles can ply on highways, disrupting the movement of imports and exports.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Arshad Jamal (Dipu) said the highway was closed since Wednesday evening, so no vehicles carrying goods could travel from Dhaka to Chittagong or reach the capital.
“We are very worried about the developments,” Dipu said, adding that “shipping goods to Chittagong has become very difficult.” If the dispute is not resolved soon, the export-oriented industry will face a grim situation.
Nurul Qayyum Khan, president of the Bangladesh Inland Container Depot Association (BICDA), said no trucks could enter the warehouse from the factory or drive to the port since Thursday morning due to security reasons.
“Import containers are also not coming out of the port because drivers are unwilling to take risks,” he said, adding that “usually, these yardsHandles approximately 4,000 TEUs of import and export containers and empty containers every day, these containers remain suspended for the day.”
However, he said cargo handling in the container yard was ongoing and boxes would start being sent to the port once the situation normalised.
Chittagong officials said container loading and unloading at the port yard was also proceeding as usual, but no boxes were being moved out of the port area due to road blockade.
According to Bangladeshi media reports on July 16, as protests continued, all public and private universities in Bangladesh announced an indefinite closure. According to the latest data, the death toll in the conflict in Bangladesh has risen to 19, with more than 2,500 injured.
Over 1,500 tons of cargo waiting to be processed
Customs authorities introduced a new rule on June 6 allowing courier services to self-assess shipments weighing less than 30 kg, which helped importers receive shipments within two days. This also made exports faster, but meant C&F agents lost business.
C&F agents are slower in processing goods and importers have to wait about a week to receive them, forcing factories to postpone production.
More than 1,500 tonnes of import and export goods are waiting to be processed at Dhaka airport as customs clearance and C&F agents staged a three-day strike to protest the introduction of the express delivery system.
C&F agents suspended their strike on Tuesday but warned they would strike again on Monday unless a memorandum of understanding to boost their business was signed by Sunday.
A large amount of cargo is piling up at the Hazrat Shahjalal International Airport (HSIA).The strike coincided with a government holiday.The situation was so bad that goods could not be delivered for four days. Industry insiders said it would take at least a week to clear the backlog.
Dhaka Customs Agents Association secretary general Faruque Alam said members of his association partially resumed work on Thursday, but added that handling of express shipments remained suspended until the MoU was signed.
Arshad Jamal (Dipu), vice-president of Bangladesh Garment Manufacturers and Exporters Association, said most of the clothing accessories arrive in Bangladesh by air, adding: "This is the peak season for sweater production and the suspension of shipments from Dhaka airport has a huge impact."
Nasir Ahmed Khan, vice president of the Bangladesh Freight Forwarders Association, said many factories were storing export cargo in warehouses instead of sending it to the airport due to the strike.
“Currently Dhaka’s export cargo capacity is lower than demand and the backlog will further exacerbate the space shortage," he said. "Immediate deployment of freighters may help reduce the cargo backlog."
Nasir Ahmed Khan added that the strike also damaged the country's reputation.
To cope with this dilemma, the Bangladeshi government and relevant departments are taking emergency measures to solve the problem of cargo accumulation and restore normal logistics order.
This ongoing congestion is undoubtedly another severe test.Huifeng International hereby reminds all customers to communicate and plan in advance to avoid affecting the normal operation of business.
The four major air routes all fell, especially the West Coast of the United States!
Affected by the additional capacity, ShanghaiExport Container Freight IndexAfter two consecutive weeks of decline, long-distance routes to Europe and the United States have all declined, especially the US West Coast route, which has seen a significant drop.
Industry insiders believe that the freight rate correction is related to the increase in shipping capacity. It is expected that freight rates will continue to decline next week, but the decline will narrow. At the same time, the delivery of new ships increased significantly in the first half of the year, and more shipping capacity will be delivered in the second half of the year, intensifying market competition.
Affected significantly by the additional shipping capacity, the latest Shanghai Freight Index (SCFI) released on the 19th fell by 3.6% to 3542.44 points. This has been a downward trend for two consecutive weeks, and the decline has widened.
The four major ocean routes to Europe and the United States all suffered a drop of more than 1%.
Among them, the spot market booking price of European routes fell slightly. On July 19, the freight rate (sea freight and sea freight surcharge) from Shanghai Port to the European base port market was US$5,000/TEU, down 1.0% from the previous period.
The freight rates on the Mediterranean route were basically synchronized with those on the European route. The market freight rates fell slightly to USD 5,361/TEU, a decrease of 1.2%.
The supply and demand relationship on the North American route weakened and market freight rates continued to adjust.
On July 19, the market freight rate (sea freight and sea freight surcharge) from Shanghai Port to the West Coast of the United States was US$7,124/FEU, down 6.9% from the previous period. The market freight rate (sea freight and sea freight surcharge) from Shanghai Port to the basic ports in the East Coast of the United States was US$9,751/FEU, down 1.3%.
Analysts in the international logistics industry pointed out that after a period of sharp increases in freight rates, there will naturally be a correction. The Red Sea crisis and the expiration of the labor-management contract on the East Coast of the United States at the end of the year are still important factors affecting the market.
In addition, some shipping companies chose to deploy small ships to the US West Coast route to compete for cargo, which further increased the supply of shipping capacity and had a significant impact on the freight rate performance in the past two weeks.
Senior managers of freight forwarding companies and shipping companies also revealed that with the increase in overtime ships and the continuous introduction of new routes, freight rates on the US West Coast route have dropped from the highest point of US$8,500 on July 1 to the current range of US$6,700-6,900.
At the same time, the freight rate on the US East route also dropped from the highest point of US$10,400 to about US$9,800. It is expected that the market freight rate will continue to decline next week, but the decline will be narrowed.
According to Alphaliner's statistics, a total of 271 new ships were delivered worldwide in the first half of the year, with a total capacity of 1.68 million TEUs. The second quarter was the peak period for ship deliveries, with an average monthly delivery of 315,000 TEUs.
So far, the global total capacity has reached 30.266 million TEUs, setting a new record. It is expected that 1.49 million TEUs of new capacity will be delivered in the second half of the year.
The top three in terms of capacity areMediterranean Shipping Company MSC, Maersk Line andCMA CGM, among which Mediterranean Shipping Company MSC has a current capacity of more than 6 million TEUs and occupies a market share of 20%.
Freight forwarding industry insiders stressed that the high freight rates on European and American routes attracted a large number of overtime ships to enter the market, and the launch of new route services to compete for cargo sources were the main reasons for the decline in freight rates.
Among them, due to the high turnover rate of ships,The West Coast of the United States has become the hardest hit area, the spot market price has dropped to the 6-digit range, with a cumulative decline of more than $1,000.
Even though freight rates have loosened, the SCFI freight rate index has fallen for two consecutive weeks, with a cumulative decline of only 191.36 points, or 5.13%. Compared with the 13 consecutive weeks of increases from early April to early July, there is still a 1.03-fold increase.Shipping companies still make a lot of profit.
Although July to August is traditionally the peak shipping season, this year's peak season has been advanced overall, making it difficult to see a new wave of shipment increases in August and September.
However, there is also a view that even if the current shipping costs have peaked and then rebounded, the magnitude of the rebound is expected to be limited.
SCFI latest freight index:
- The freight rate from Shanghai to Europe is USD 5,000/TEU, down USD 51 and 0.1% from the previous week.
- The freight rate from Shanghai to the Mediterranean is USD 5,361/TEU, down USD 63 and 16% from the previous week.
- The freight rate from Shanghai to the US West Coast is USD 7,124/FEU, a sharp drop of USD 530 and a weekly drop of 92%.
- The freight rate from Shanghai to the US East Coast is USD 9,751/FEU, a slight decrease of USD 130 and a weekly decrease of 32%.
- The freight rate of the Persian Gulf route is US$2,193 per box, down US$80 from the previous week, a drop of 52%;
The freight rate of South America line (Santos) is USD 8,212 per box, down USD 548 from the previous week, a decrease of 6.26%.
For the near-sea routes, the Far East to Kansai and Kanto in Japan were US$293 and US$299 respectively, the same as last week; the Far East to Southeast Asia was US$711 per TEU, down US$42, or 5.57%; the Far East to South Korea was US$165 per TEU, up US$3.
Typhoon "Gemi" is coming! Port operations are suspended!
At 8:00 on July 24, this year's third typhoon "Gemi" strengthened into a super typhoon, which is also the first super typhoon this year.
The Central Meteorological Observatory issued a typhoon red warning.It is expected that "Gemi" will move northwest at a speed of 10-15 kilometers per hour and will make landfall on the coast of Hualien to Keelung in Taiwan at night.
It then crossed Taiwan Island and landed on the coast from Fu'an to Jinjiang in Fujian in the afternoon or night of the 25th.
To ensure the safety of goods, the port issued an emergency notice:
1. The general cargo operators of the port will no longer arrange additional loading and unloading operations at the terminal, and will stop loading and unloading operations at the terminal before 8:00 on the 24th, and require ships in the port to leave their berths to avoid the wind;
2. Personnel working on water transport projects under construction must evacuate before 8:00 on the 24th.
All cargo owners and bosses need to pay close attention to weather conditions and take timely countermeasures.
Sea Wave Red Alert:
The National Ocean Forecasting Center issued a red alert for sea waves:
Affected by this year's third typhoon, it is predicted that from noon on July 24 to noon on July 25, there will be 6 to 10 meters of turbulent waves to rough waves in the southern East China Sea and the sea east of Taiwan, and 4 to 7 meters of huge waves to turbulent waves in the Taiwan Strait, and the wave warning level for the offshore waters will be orange; there will be 4 to 6 meters of huge waves to turbulent waves in the offshore waters of southern Zhejiang and northern Fujian, and the wave warning level for the offshore waters will be red, there will be 3 to 5 meters of large waves to huge waves in the offshore waters of northern Zhejiang, and the wave warning level for the offshore waters will be orange, and there will be 3 to 4 meters of large waves to huge waves in the offshore waters of southern Fujian, and the wave warning level for the offshore waters will be yellow.
Yellow Storm Surge Warning:
The Zhejiang Provincial Marine Monitoring and Forecasting Center issued a yellow storm surge warning. It is expected that the Ningbo coast will see a storm surge of 40-80 cm.
Strong wind forecast:
From 14:00 on July 24 to 14:00 on July 25, there will be 7-9 force gale in the southwestern Yellow Sea, most of the East China Sea and the waters near the Diaoyu Islands, the Taiwan Strait, the sea east of Taiwan, the Bashi Strait, most of the South China Sea, the coast of Taiwan Island, the coast of Zhejiang, the coast of Fujian, the coast of Guangdong, the southeastern coast of Jiangsu, the coast of Shanghai, the Yangtze River Estuary, and Hangzhou Bay.
Among them, the wind force in the southern East China Sea and the waters near the Diaoyu Islands, the sea east of Taiwan, the coast of Taiwan Island, the coast of Fujian, and the coast of southern Zhejiang is 10-13 levels. The wind force in the nearby sea or areas where the center of "Gemi" passes is 14-17 levels, with gusts above 17 levels.
Key weather forecast for offshore waters:
The southern and eastern waters of my country will be affected by the typhoon. It is expected that from the daytime of the 24th to the night of the 26th, under the influence of Typhoon "Gemi", the southern Yellow Sea, most of the East China Sea, the Taiwan Strait, the sea east of Taiwan, and the Bashi Channel will have strong winds of 7 to 9 levels and gusts of 8 to 10 levels.
The southern part of the East China Sea, the Taiwan Strait, the sea east of Taiwan, and parts of the Bashi Channel will have strong winds of 10-12, with gusts of 11-13. The winds in the nearby seas where the center of Typhoon Gemi passes may reach 13-16, with gusts of more than 17.
In addition, most areas of the South China Sea will have winds of level 6 to 7, with gusts of level 8.
Indonesia's crackdown on illegal imports to last at least a year
The Indonesian government has recently upgraded its crackdown on illegal imports, which has aroused widespread concern among merchants. The Minister of Trade announced on July 19 that a special task force was formally established in accordance with the Minister of Trade Order No. 932 of 2024 to comprehensively monitor and enforce import trade procedures to eliminate illegal imports. This action not only covers the current categories, but may be expanded to more types of goods in the future. It is expected to last at least one year, or even longer.
British Trade Minister: No plans to impose high tariffs on Chinese electric vehicles
According to British media reports, British Business and Trade Secretary Jonathan Reynolds said at the G7 Trade Ministers' Meeting that the UK will not follow the EU's example and impose high tariffs on electric vehicles imported from China.
The Financial Times reported that Reynolds does not intend to immediately launch a formal investigation into electric vehicles imported from China. The report quoted sources as saying that the British automotive industry has not formally asked the UK Trade Remedies Bureau to conduct an anti-subsidy investigation into Chinese electric vehicles, which is a necessary step before the UK launches relevant investigations.
Liberia issues guidelines for the management of imported electrical and electronic equipment
The official website of Liberia's New Dawn reported on July 19 that the Ministry of Commerce and Industry of Liberia recently issued management guidelines for imported electronic and electrical equipment to promote innovation and productivity in the field of electronics and electrical, improve the level of modernization, and contribute to economic and technological progress. It is reported that the management guidelines will take effect on August 1, 2024.
The contents include requiring importers to comply with laws such as business registration, taxation, labor and immigration, obtain import licenses before goods are imported and ensure compliance with international standards and Energy Star ratings, all products must provide at least one year warranty and can be extended, importers must establish customer service centers in Libya, product retail stores must have unified prices, and must participate in or establish electronic waste recycling programs.
Bus exports increased for six consecutive months, with strong overseas demand for new energy buses
Since the beginning of this year, my country's bus exports have continued to grow rapidly. In the first half of the year, bus exports have increased year-on-year for six consecutive months, with exports exceeding 5,000 units for two consecutive months in May and June. Data shows that in the first half of 2024, my country exported and sold a total of 27,551 large, medium and light buses, a year-on-year increase of 39.36%. Industry insiders believe thatBuses going overseas have become the second growth curve for many bus companies. Among them, new energy buses have strong overseas demand and broad export prospects.
Europe's auto export surplus to China may reverse this year
A new study by PricewaterhouseCoopers and its Strategy& consulting firm shows that the traditional export surplus of the German automotive industry with China may be reversed as early as this year. Experts estimate that this year China may export 440,000 cars to Europe, while Europe may only export 325,000 cars to China, of which German-made cars account for the vast majority (295,000).
Last year the situation was the opposite: Europe exported 350,000 cars to China, including 320,000 German cars, while Chinese brands sold 280,000 cars to Europe.
Domestic display exports soared, with the US market becoming the largest buyer
According to the latest statistics released by Luotu Technology, in the first half of 2024, the total export volume of general-purpose displays (excluding automotive and aviation, etc.) from mainland China reached 49.66 million units, an increase of 13% compared with the same period last year; the total export value reached 39.3 billion yuan, a year-on-year increase of 23%.
Specifically, the North American market is the largest export destination for domestically produced monitors, accounting for 29% of the total exports, totaling 14.41 million units, a year-on-year increase of 13%. In this region, the United States has a market share of 91%, making it the largest consumer in the North American market. In addition, Western Europe, as the world's second largest export destination, accounts for 27% of the total exports, about 13.42 million units, a year-on-year increase of 22%. Asia ranks third, accounting for 22% of the total exports, equivalent to 11.1 million units, a year-on-year increase of 10%.
This growth trend may be related to the suspension of interest rate hikes and the decline in inflation rates in Europe and the United States, as well as the promotion of large-scale international events such as the E-Sports World Cup. These factors have significantly increased demand for monitors in overseas markets.
Shanghai Port opens new channel for cross-border e-commerce shipping exports
The gap in the sea transportation channel for cross-border e-commerce exports at Shanghai Port has finally been filled. The newly opened "9610" sea transportation export channel can provide more diversified logistics options for cross-border e-commerce companies to export low value-added, high-volume packages from Shanghai Port.
The customs supervision code "9610" represents the "cross-border trade e-commerce" model, also known as the "collection model" in the industry. This model targets B2C (business to individual) orders with small packages, multiple product names, and high frequency shipments in cross-border e-commerce. These orders are generated on various cross-border e-commerce platforms, and then shipped to overseas buyers through international express and dedicated small package logistics. Customs adopts the "list verification and release" method to supervise the exit of goods. Compared with general trade exports, the "9610" model has shorter links, lower costs, and higher customs clearance efficiency.
Henan issued 18 measures to promote the integrated development of domestic and foreign trade
On the evening of July 18, the Henan Provincial Government issued the "Several Measures to Promote the Integrated Development of Domestic and Foreign Trade in Henan Province", pointing out that the province will accelerate the construction of the RCEP (Regional Comprehensive Economic Partnership Agreement) demonstration zone and promote the construction of domestic and foreign trade integration demonstration cities such as Zhengzhou, Luoyang and Nanyang.
The "Measures" mainly include five aspects, including promoting the connection and integration of domestic and foreign trade rules and systems, promoting the connection of domestic and foreign trade market channels, optimizing the development environment of domestic and foreign trade integration, accelerating the coordinated development of domestic and foreign trade in key areas, and improving the guarantee measures for domestic and foreign trade integration.
In order to achieve the integrated development of domestic and foreign trade, the Measures also provide 18 specific paths, including promoting the connection between domestic and foreign trade inspection and certification, encouraging foreign trade enterprises to explore the domestic market, strengthening intellectual property protection and services, building demonstration cities for the integration of domestic and foreign trade, and strengthening fiscal policy support.
Source: Foreign Shipping, Shipping Today, Focus Vision, etc.
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