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Worldwide Freight Forwarding Industry to 2026 – Asia-Pacific is Anticipated to Witness High Growth


Dublin, June 10, 2021 (GLOBE NEWSWIRE) — The “Freight Forwarding Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.

The global freight forwarding market is expected to grow steadily with a CAGR of more than 4% during the forecast period. The growth in international trade volumes is a major driver for the freight forwarding market. Moreover, the rise in trade agreements between countries is also contributing to the growth of the market. Asia-Pacific is the fastest growing and the largest market for freight forwarding, with the Chinese freight forwarding market holding the maximum share.

Being non-asset based, the sector is facing high competition from other players in supply chain and technology-based companies which are disrupting the freight forwarding market. The market is one of the sectors that were hit the hardest by the COVID-19 outbreak in 2020. With the lockdown in many countries and a major focus on the production of essential products, the volumes of air and ocean freight have fallen significantly in 2020. However, the market is now recovering backed by the manufacturing and e-commerce industries; especially the air freight forwarding market with significant thrust during the period as reported by the International Air Transport Association (IATA) in January 2021.

Key Market Trends

Sea Freight Forwarding to experience high growth rate through the forecast period

The global sea freight forwarding market is booming, owing to the growing internet penetration, increasing purchasing power parity, developments in infrastructure (ports, containers, and ships with new technologies), and services designed particularly for the e-commerce industry.

Sea freight forwarding is preferred by several end-user industries, and several strategic partnerships are also likely to promote the growth of sea freight forwarding during the forecast period. The growing global cross border e-commerce market is also driving the less-than-container load (LCL) volume and is positively impacting the sea freight forwarding market growth.

Factors, such as the growing trade volume in European trade routes, the increasing container port throughput, and the rising number of FTAs will significantly drive sea freight forwarding market growth in this region during the forecast period.

Germany and the United Kingdom are the key markets for sea freight forwarding in Europe. Market growth in this region will be faster than the growth of the market in other regions.

Asia-Pacific is anticipated to witness high growth through the forecast period

The global logistics industry is going through an uncertain period due to COVID-19. The Asia-Pacific market is one of the few regions that are still growing despite the pandemic.

For the freight and logistics market, Asia-Pacific is the fastest-growing region, globally. This is due to the increasing logistics in ASEAN countries and the presence of major economies, like China and India. Additionally, the high government support for the logistics sector in the region is also a factor boosting the industry growth.

China is the largest manufacturer in the region and in the world, with an increasing demand for pharmaceutical products and essentials. China reopened its factories way before other countries, as a result, it is still leading the freight forwarding market, globally.

Also, leading countries in the region are observing faster technological integration in the logistics process. In India, 80% of freight moves by road, and the trucking industry is adopting industry-leading tracking technology to trace and predict the exact delivery times. Thailand is incorporating IBM and Maersk’s blockchain project to streamline its shipment monitoring processes.

Competitive Landscape

The global freight forwarding market is made up of large number of players. However, the top 20 players dominate the market accounting for more than 50% of the total market. Leading players in the market include DHL Global Forwarding, Kuehne + Nagel International AG, DB Schenker, DSV and Expeditors International.

As the freight forwarding market is growing steadily and there exists abundant opportunity, the players need to embrace technologies, become more digitized, and increase the scale and efficiency of their operations. Having a strong network spanning across the globe is important for companies. As the industry is highly competitive and witnessing huge transformations, the companies need to develop specialized solutions to improve customer experience.

Companies are constantly under pressure to minimize cost and optimize operational efficiency. In the wake of investment shifts and diversification of global supply chains, international investors are increasingly interested in mergers and acquisitions in the ASEAN logistics market. Global logistics companies have been expanding in the ASEAN region, because of the increase in commerce and trade activities. As such, investment opportunities for the sector have been increasing accordingly.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Value Chain/Supply Chain Analysis
4.3 Government Regulations and Initiatives
4.4 Technological Trends and insights on E-Freight Forwarding Market
4.5 Insights on E-Commerce Industry in the Region (Domestic and Cross-Border)
4.6 Spotlight – Freight Transportation Costs/Freight Rates
4.7 Brief on Freight Transport Corridors
4.8 Impact of COVID-19 on the Freight Forwarding Market

5 MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints/Challenges
5.3 Market Opportunities
5.4 Industry Attractiveness – Porter’s Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Threat of Substitute Products
5.4.3 Bargaining Power of Buyers/Consumers
5.4.4 Bargaining Power of Suppliers
5.4.5 Intensity of Competitive Rivalry

6 MARKET SEGMENTATION
6.1 By Mode
6.1.1 Air Freight Forwarding
6.1.2 Sea Freight Forwarding
6.2 By Geography
6.2.1 North America
6.2.1.1 United States
6.2.1.2 Canada
6.2.1.3 Mexico
6.2.2 Europe
6.2.2.1 Germany
6.2.2.2 France
6.2.2.3 United Kingdom
6.2.2.4 Netherlands
6.2.2.5 Italy
6.2.2.6 Rest of Europe
6.2.3 Asia-Pacific
6.2.3.1 China
6.2.3.2 Japan
6.2.3.3 Australia
6.2.3.4 India
6.2.3.5 Singapore
6.2.3.6 Malaysia
6.2.3.7 Indonesia
6.2.3.8 Vietnam
6.2.3.9 South Korea
6.2.3.10 Rest of Asia-Pacific
6.2.4 South America
6.2.4.1 Brazil
6.2.4.2 Chile
6.2.4.3 Rest of South America
6.2.5 Middle East & Africa
6.2.5.1 South Africa
6.2.5.2 United Arab Emirates
6.2.5.3 Saudi Arabia
6.2.5.4 Qatar
6.2.5.5 Rest of Middle East & Africa

7 COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration, Major Players)
7.2 Company Profiles
7.2.1 DHL Supply Chain & Global Forwarding
7.2.2 Kuehne + Nagel International AG
7.2.3 DB Schenker
7.2.4 DSV
7.2.5 Sinotrans
7.2.6 Expeditors International
7.2.7 Nippon Express Co., Ltd.
7.2.8 CEVA Logistics
7.2.9 UPS Supply Chain Solutions
7.2.10 Kerry Logistics
7.2.11 Bollore Logistics
7.2.12 C.H.Robinson Worldwide Inc.
7.2.13 GEODIS
7.2.14 Yusen Logistics/NYK Logistics
7.2.15 Agility Logistics*

8 FUTURE OF THE MARKET

9 APPENDIX
9.1 Freight Volume Movement Statistics for Key Countries

For more information about this report visit https://www.researchandmarkets.com/r/pxkycg


        



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Traffic infrastructure set to meet freight transport demand of 4.4 billion tonnes – VietNamNet


Vietnam’s traffic infrastructure is expected to meet demand for the annual transportation of 4.4 billion tonnes of freight and 10.46 billion passengers by 2030, heard a recent meeting of the Ministry of Transport.

Traffic infrastructure set to meet freight transport demand of 4.4 billion tonnes hinh anh 1

Illustrative photo (Source: VNA)

According to the ministry’s Transport Development and Strategy Institute, the sector has recorded breakthrough progress in recent times, with investment being channelled into building expressways and international sea ports and airports and into improving the country’s infrastructure.

Head of the institute Le Do Muoi said the common goal of the five national transport planning schemes for 2021-2030 and vision to 2050 is to develop a synchronous national infrastructure system, build a number of modern, high-quality works, improve the economy’s competitiveness, and gradually curb traffic accidents.

The sector has also proposed steps for investments in railways, especially those connecting sea ports and logistics centres to the national rail network.

At the meeting, Minister of Transport Nguyen Van The underscored that further breakthroughs must be made in the years to come, and directed that future projects be linked together and that the nation’s potential and strengths for socio-economic development be brought into play.

He assigned relevant units to assess the general demand for new means of transport, prepare lists of prioritised projects, and set out capital solutions and roadmaps for their implementation, among other matters./. VNA



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Traffic infrastructure set to meet freight transport demand of 4.4 billion tonnes | Society | Vietnam+ (VietnamPlus)


Traffic infrastructure set to meet freight transport demand of 4.4 billion tonnes hinh anh 1Illustrative photo (Source: VNA)

Hanoi (VNA) – Vietnam’s traffic infrastructure is expected to meet demand for the annual transportation of 4.4 billion tonnes of freight and 10.46 billion passengers by 2030, heard a recent meeting of the Ministry of Transport.

According to the ministry’s Transport Development and Strategy Institute, the sector has recorded breakthrough progress in recent times, with investment being channelled into building expressways and international sea ports and airports and into improving the country’s infrastructure.

Head of the institute Le Do Muoi said the common goal of the five national transport planning schemes for 2021-2030 and vision to 2050 is to develop a synchronous national infrastructure system, build a number of modern, high-quality works, improve the economy’s competitiveness, and gradually curb traffic accidents.

The sector has also proposed steps for investments in railways, especially those connecting sea ports and logistics centres to the national rail network.

At the meeting, Minister of Transport Nguyen Van The underscored that further breakthroughs must be made in the years to come, and directed that future projects be linked together and that the nation’s potential and strengths for socio-economic development be brought into play.

He assigned relevant units to assess the general demand for new means of transport, prepare lists of prioritised projects, and set out capital solutions and roadmaps for their implementation, among other matters./.

VNA





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High container freight rates leave commodity traders scrambling for alternatives




Commodities across the metals, petrochemicals and agriculture sectors that typically ship in container vessels are increasingly turning to dry bulk vessels and other modes of transport as container freight costs soar, market sources told S&P Global Platts March 25.

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The Platts Container Index, a weighted average of the spot freight cost on key container trade routes, was last assessed at $4,495.59/FEU — more than 3.5 times higher than a year earlier.

With container rates on some key routes currently four times higher than previous record highs, some cargo owners are seeking alternatives. This has boosted rates on smaller coaster and Handysize vessels, especially in the UK-Continent, with some scrap cargo owners opting to take bulkers rather than containers to reduce costs.


“It’s costing me almost $200/mt to move my goods from China to Europe, whereas this time in 2019 I could expect to see a charge of $50 or $60/mt for the same cargo,” a UK-based importer said.

“With rates on containers looking to stay significantly high for some time as carriers employ void sailings, I expect my arbitrages will close. I have to take a full vessel even if I can’t fully load it or consolidate cargo, and even then, it’s still cheaper than box freight — it’s madness,” the importer added.

Ferrous scrap contract terms evolve

In the ferrous scrap market, tight availability of container space and decreased schedule reliability has resulted in contract terms evolving to mitigate risk for both buyers and sellers.

Spot contracts may now provide the seller with the ability to deliver from multiple origins instead of one, while shipment dates are for longer periods.

“One [containerized] contract may now be reflecting origins from the US, with options of coming from Europe too these days, or vice versa,” a trader in west Asia said. “This is just in case we are unable to get shipping space from either side.”

With the increased competition within the bulk market from other containerized commodities shifting preferences, mini-bulk freight rates ex-Japan were heard to have doubled, leading to traders with outstanding contracts to deliver burnt by surging delivery costs.

The cost to ship 5,000 mt of scrap metal from Japan to Vietnam had surged to around $50-$60/mt from $35-$39/mt in Q4 2020, market sources said.

Petrochemical traders switch to break bulk

Polymer sellers in China have started offering cargoes on an FOB instead of delivered CFR basis due to tight container availability and poor schedule reliability. This initially left buyers scrambling for containers, and prompted some to move to bulk carriers.

“For some polymers, where end-users are small and fragmented, the move to bulk cargoes is difficult, but the shift to bulk has started for other segments where buyers have larger units and deeper pockets,” a trader in India said.

This shift is clearly visible in purified terephthalic acid — a solid chemical used for making polyester clothing and plastic bottles — where more buyers are switching to break bulk carriers for shipments to destinations such as India.

The shift started February and has gained traction as buyers figure out ways to handle additional costs such as insurance, demurrage, damage and other port handling charges that are usually lower with containers, one source said.

Around 40%-50% of PTA arriving in India from China in February was by break bulk vessel, traders in India said.

Buyers are banding together to fill up 21,000 mt bulk vessels to transport PTA from China to India, sources said, and the trend was expected to continue as long as there was a container crunch in China.


Asian sugar traders left behind

Container buyers of Asian sugar were holding back on bulk purchases due to high costs and logistical challenges. While it is possible to move white and refined sugar in bulk shipments, traders said it was costly and challenging, and there were not many refined sugar buyers with the flexibility to switch to breakbulk shipments.

“It is possible for container buyers to move sugar in bulk, but generally it doesn’t make sense logistically,” a sugar trader said.

In addition, the rise in freight rates for dry bulk cargoes has made this option as unattractive as containers, traders said.

As a result, sugar traders are opting to defer demand from destination buyers in Q1.

Market sources said a 25,000 mt Handysize vessel from west coast India to Jakarta now costs $45-$60/mt, up from around $20/mt in Q4 2020.

The cost to move 25,000 mt of sugar from Thailand to Indonesia hit a multi-year high at $28.50/mt Feb. 18, almost doubling from $14.30/mt at the start of the year, Platts data showed.


Weakening demand for nearby shipment sugar was being reflected in a narrower structure between the New York No. 11 May and July sugar futures to a 24-point inverse March 23 from a 50-point inverse just after the March 2021 futures contract expired.

“The high freight has led to destination deferring demand, which caused New York May-July 2021 spreads to collapse,” a Singapore-based trader said.

Interest in intermodal transport

Another increasingly popular option was a mix of containers, rail and land.

“Trucking services from Singapore to China then rail to Europe is pretty hot currently,” a Singapore-based source said. “Major multinational companies are looking at road transport because for ocean they do not get certainty even after paying a premium, but land transportation provides visibility.” The source estimated the entire cost at around $30,000 per 40-foot truck.

“Even though this is almost double ocean freight from Singapore to Europe, customers are asking for this service due to the greater reliability,” the source said.

Interest in intermodal transport was also seen in Europe.

“Intermodal rates from southern Europe to the north are still really firm; people can’t afford delays to goods in northern Europe so they are shipping to transshipment hubs in Italy and Spain and then railing their goods inland,” a container carrier said.

Container freight rates from North Asia to the Mediterranean are still at a discount to the North Continent, but the carrier conceded that once rail freight costs were added, this route via the Mediterranean was more costly than direct container freight to the North Continent.

“It’s up to you; pay another $1,000/FEU for rail when the costs are already high anyway, or pay around $10,000/FEU regardless and run the risk of cargo being rolled [delayed to next shipment] or stuck waving at the shore for some weeks, like they have offshore west coast North America,” the source said.

Another source said pricing pressure from containers and dry bulk may have spilled into rail.

“Now there is a huge rise in rail freight and space is very limited on rail,” a Hong Kong-based logistics provider said.



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Global supply chains choke under tsunami of freight – FreightWaves


With global supply chains buckling under huge order volumes and a confluence of disruptive forces, shippers should prepare for 2021 to be a perpetual peak season across all transport modes, logistics experts warn.

Competition for freight space is so fierce that companies will need to pay exorbitant premiums to get on planes and vessels and apply more flexible shipping methods to avoid delays.

And the unusual move to keep factories open during the long Chinese New Year holiday means freight transportation systems won’t have a chance to draw down shipments stacking up at ports and loading docks.

“There will be no slack season this year,” said Brian Bourke, chief growth officer at Chicago-based SEKO Logistics, during a video briefing for reporters on Monday. 

How upside down is the market? With container vessels overbooked, shippers paying record rates and surcharges to secure space, and congested terminals forcing vessels to wait days for a berth, SEKO’s ocean freight sales team is now selling airfreight as an alternative mode for customers that need goods quickly, he said.

And airfreight, which is normally about eight times more expensive than ocean transport, is no panacea. Demand is expected to grow by double digits after recovering from the depths of the coronavirus crisis last summer, while cargo capacity remains about 20% below 2019 levels because of the extensive reduction in passenger flights. 

On major trade corridors, planes are flying full and rates are two to three times higher than normal. Load factors on a key trans-Atlantic route, for example, were higher in January — above 80% on average — than in November and December, typically a much busier shipping period, according to CLIVE Data Services. So many flights are full that some carriers are telling customers they cannot guarantee capacity commitments.

Port congestion ripple effects

The import/export bottlenecks are all related to the COVID pandemic. 

Companies are building up inventories that diminished when the global economy locked down last spring. Demand for medical supplies from China to combat the virus remains high. Meanwhile, consumers have shifted spending from services to things they can enjoy at home or outdoors while observing social distancing rules. Hot items on e-commerce platforms include treadmills, hot tubs, TVs, surround-sound systems, bicycles and ski equipment.

The National Retail Federation forecasts that container ports are expected to set monthly import records through June, after setting a record of 22 million TEUs last year.

The U.S. Congress is also preparing a new coronavirus stimulus package, with more unemployment benefits and $1,400 checks for people making $75,000 or below, which is likely to spur another round of robust e-commerce purchases for goods made in Asia.

The V-shaped recovery in container shipping, with some 5 million twenty-foot equivalent units (TEUs) pushed from the first half of the year into the second half, has strained the industry’s capacity to the limits. Industry analysts say every available vessel is deployed, but it’s not enough to handle such a quick shift in volume.

Meanwhile, COVID infections and quarantines have reduced the number of available longshoremen in the Los Angeles-Long Beach port complex to work ships and get containers on trucks, leading to massive port congestion. Ships are falling behind schedule as they wait more than five days for a berth. It can take another five days to get containers through the terminals to surrounding warehouses or onto trains, with drivers waiting up to two hours to enter the gate.

There are currently 31 container vessels anchored offshore, with an estimated 310,000 TEUs worth of stranded goods, according to the Maritime Exchange of Southern California. 

East Coast, European and U.K. ports are experiencing similar challenges, to varying degrees.

On-time reliability for vessels has dropped to 45%, according to Denmark-based maritime research and advisory firm Sea-Intelligence ApS. And the latest monthly report from Ocean Insights shows record-breaking rates of containers being rolled from a scheduled vessel to a later departure, with industry leader Maersk posting a 14% increase in January year-over-year. 

Vessel delays and a shortage of containers are having a corresponding effect in China, where shipments are also piling up. 

Normally, shipping volumes hit a lull in late December, tick up for a few weeks in February and early March to make up the slack following the Lunar New Year and then ease back until late summer as companies stock up for back-to-school and the holidays.

Factories typically close during Chinese New Year for more than a week as people flock from coastal cities to inland provinces to celebrate with their families in what is considered the largest human migration in the world. Ocean carriers temporarily pull many vessels from their schedules to avoid sailing half empty. When businesses reopen, there is huge transportation demand to move postponed shipments. The schedule puts pressure on businesses to tightly manage inventory, production timelines and shipping deadlines to make sure they can deliver during the seasonal rush before and after the holiday window. 

No shipping lulls

But the Chinese New Year holiday, which begins Friday, won’t provide much breathing room for transport providers this year. Chinese authorities are discouraging “nonessential” travel to contain a new wave of the coronavirus. Many manufacturers have announced they will continue production through the holiday period to clear backlogs of orders.

Congestion problems are expected to persist without the normal pause to help clear out shipments. The NRF estimates container volumes at U.S. ports in March will soar 41% from a year ago to 1.93 million TEUs.

Last year, ocean carriers cut 112 vessel departures at Chinese ports, or about 20% of capacity. Through Monday, there were only 63 blank sailings announced for the holiday period, and the primary reason was because of the huge rotation issues, not a decrease in demand, said SEKO’s Akhil Nair, vice president of global carrier management and ocean strategy.

Air backlogs could also grow because a large number of freighter flights were canceled weeks ago in anticipation of a dead shipping period, according to Flexport, a San Francisco-based freight management company.

Chinese COVID safety measures are impacting freight transport in other ways too. 

Truckers arriving at coastal ports from western provinces have to pass three different levels of COVID testing along the journey and the outbreaks have raised fears that domestic travel could be completely locked down by the government like it did a year ago, said Nair, who is based in Hong Kong.

Truck capacity is also scarce in logistics hubs because there was a large exodus of drivers who left before the Lunar New Year in anticipation of possible travel restrictions. Ocean Insight reported the truckers are subject to mandatory quarantine by traveling home and in some regions, especially the south, up to 95% of truckers will be unavailable.

And shipping along the Pearl River delta is disrupted after barge and small-vessel operators that feed the deepwater ports stopped accepting cargo for 10 days or more because of additional COVID testing in South China and Hong Kong. The entire region is switching to trucks to try and move cargo all the way to the Yantian International Container Terminal in Shenzhen and the Port of Hong Kong.

On Sunday, the Yantian terminal increased the cutoff time for deliveries to container yards from two days to a week before vessel departure in an effort to reduce truck queues that stretch for miles. 

Meanwhile, there are no empty containers for trucks to take back because shipping lines only plan to release them five days before vessel departure. With nowhere to go, cargo is piling up in warehouses.

“You have a chicken-and-egg syndrome. If you get a container, you can’t get it back in for the ship. And if you don’t get a container anyway, which you were waiting for, you can’t move your cargo out,” Nair said.

He predicted the confluence of transportation woes — terminal restrictions, driver shortages, continued factory production and limited vessel supply — will reach a crescendo next week.

“These conditions will choke factory-port connectivity starting in about two weeks, with inventory backups lasting for months,” Ocean Insight said.

And that’s not all. 

Vietnam’s Tet holiday coincides with Chinese New Year and many Chinese-owned factories there plan to keep operating this year, which will lead to large backlogs because shipping lines prioritize putting empties first in China. Intra-Asia feeder routes that carry raw materials and semi-manufactured goods for assembly plants also get second-class treatment so shipping lines can use scarce boxes for the high-yielding transoceanic markets.

Nair said if the equipment shortages continue in Vietnam and other countries, orders that left China when U.S. tariffs increased during the Trump administration could temporarily pivot back to China.

“Post-Chinese New Year is not going to be a recovery but a continuous elongation of this situation,” Nair said. “We’re not going to see a big spike in bookings because the bookings are already there, but we don’t have the equipment or the trucks [to ship goods] or the port won’t let them in.”

The situation underscores how China’s ports are intertwined with those around the world.

“It’s the first time in my career that I’ve seen almost every trade area in a peak,” Nair said. “Latin America, Africa, the Middle East and India — everyone is peaking at the same time, so no carrier’s equipment ratio is going to be OK and cover this type of continual peak.”

Some retailers are suggesting their ordering may normalize by June, but even so, logistics providers say there will be a strong shoulder season until the volumes start building in August for holiday in the West.

“It looks like there may be issues all year because you get to a certain point and then you get back into peak again,” Jim Monkmeyer, president of transportation for DHL Supply Chain North America, said in an interview. “I don’t think we’re going to catch a break.”

Pay the piper

Until very recently, ocean shipping was a commodity business with carriers undercutting each on price for market share. But ongoing financial hardship led to massive consolidation and capacity discipline, with some carriers offering differentiated services.

Last summer, carriers offered guaranteed vessel loading or terminal discharge for $800 to $1,750 per box. Today, the definition between standard and premium service is blurred on the import side. Just getting cargo on the ship requires a premium and those slots are going for $1,750 to $4,000, said Chris Capodanno, SEKO’s vice president of product development and strategic client solutions.

U.S. exporters, who normally enjoy lower rates because of less backhaul demand, are also forced to pay premiums to secure a box because carriers are so keen to get empties back to China as fast as possible. Agriculture producers and other shippers, often located far inland for ports, are crying foul, saying the carriers are violating shipping law by abandoning service commitments.

U.S. domestic intermodal and rail shipments out of Southern California are also experiencing heavy delays. DHL’s Monkmeyer noted that transit times to the East Coast could take a week longer than normal, which is impacting several technology companies that manufacture in the region or across the border in Mexico.

Railroads, much like parcel companies did during the pre-Christmas rush, are capping how much volume shippers can send through the system and charging a $1,500 surcharge for any containers above their limit, Monkmeyer said.

The latest TEU tender forecast on FreightWaves’ SONAR freight data platform shows imports into the Port of Los Angeles declining over the next month and increasing in Long Beach. The data suggests the conditions for greater congestion and tight truck capacity continuing, or even increasing, since Long Beach typically handles freight going out via long-haul truck and rail. And total outbound loaded rail container volumes out of the ports and Inland Empire are elevated as well, according to SONAR, which may partially explain why outbound truckload volumes have trended down in the past couple of weeks.

Logistics response 

SEKO Logistics is managing the chaos with a number of efforts. At the top of the list is accurate forecasting. 

Capodanno said the freight forwarder is partnering with customers to conduct rolling four- to eight-week demand forecasts and adding new digital tools to manage the entire booking process, from price quote to allocation. The company also closely monitors suppliers’ production schedules at origin to nail down cargo-ready dates for pickup at the port.

When the 40-foot containers arrive on the West Coast, they are immediately trucked to a cross-dock, sorted by destination and loaded into 53-foot domestic containers for expedited truck transport to other cities across the country.

Shipping lines are beginning to divert traffic to other ports and logistics providers like SEKO are helping customers find alternate routes, but the ports of Oakland and Seattle-Tacoma are also forcing vessels to wait as back ups begin.

Express shipping services have become a popular middle options between airfreight and standard multi-port schedules, but their value is decreased if there is no room to unload.

Peloton (NASDAQ: PTON) last week said it would spend $100 million to address supply chain bottlenecks that are slowing delivery of its bike equipment, including for airfreight and fast-ship services.

Click here for more FreightWaves articles by Eric Kulisch.

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Trans-Pacific trade crashes into max-capacity ceiling

Regulators warn container lines to stop refusing US exports





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Freight and logistics stocks on the rise despite COVID-19 | Business | Vietnam+ (VietnamPlus)


Freight and logistics stocks on the rise despite COVID-19 hinh anh 1Quy Nhon Port in the south central province of Binh Dinh. (Photo: VNA)



Hanoi (VNS/VNA)
– Freight and logistics stocks have seen major gains since
the beginning of 2020 even as the COVID-19 pandemic has wreaked havoc on the
economy. 

According to
the General Statistics Office, the country’s exports topped 254 billion USD during
the first 11 months of the year, making for an increase of 5.3 percent over the
previous year, while imports were estimated at 234.5 billion USD. 

Increased
trade activities coupled with a number of international trade deals which were
recently signed or came into effects such as the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade
Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP)
have significantly boosted investors’ confidence in logistics stocks.

A number of
stocks such as VSC, GMD, DVP, DXP, SFI and HAH have seen double-digit growth in
recent months and some of them set all-time high records on the trading floor. 

Experts,
however, pointed out the recent rise in stock value did not necessarily come
from better business performance but rather investors’ optimism in the sector’s
future. For example, despite the increased trading value, Gemadept has reported
a 32 percent drop in profit in the first three quarters, Tan Cang Logistic
(TCL) a 15 percent drop and Hai An Logistics a 9 percent drop. 

A container
shortage, typically experienced by logistics firms during the end of the year
when import/export activities are at the highest level, especially for an
export-oriented economy such as Vietnam, contributed to an increase in
logistics costs.

A report from
the Vietnam Logistics Business Association (VLA) showed more than 40 percent of
firms had difficulty finding containers for their cargo with up to 17 percent
unable to rent them. This has created a large backlog of cargo at port and
storage facilities across the country, which generated additional revenue for
logistics firms. 

Meanwhile,
freight charges have skyrocketed in recent months. According to Freightos, a
Hong Kong-based shipping company, the freight charges for a 40-feet container
from China to the US west coast has almost tripled to near 4,000 USD. 

Investors also
seem to be betting on an increase in port charges as Vietnam’s current prices
were comparatively low in the region. A statement from the VLA said the sector
has set an objective to bring charges to 60-70 percent of the region’s price
level by 2025, which they have planned to start bringing up at the beginning of
next year./.





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Vietnam Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)


New York, July 28, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Vietnam Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)” – https://www.reportlinker.com/p05865757/?utm_source=GNW
High economic growth, increasing domestic manufacturing, the rise in consumption, and booming e-commerce are some of the key drivers of the Vietnamese freight and logistics market. Weak transport infrastructure and high logistics cost remain to be market restraints. Contract logistics is one of the key trends in the Vietnamese freight and logistics market. The booming e-commerce in the country presents an opportunity for start-ups with innovative technologies demanding more efficient logistics services, especially in the areas of last-mile delivery and value-added services. The logistics market in Vietnam is becoming more liberalized, creating opportunities for new companies to cash in on the rising demand.

Scope of the Report
A complete background analysis of the Vietnamese freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries, is covered in the report.

Key Market Trends
Growing Maritime Sector – The Country Aims to Become a Maritime Powerhouse

With a coastline of 3,260 kilometres and a number of rivers flowing the country, Vietnam holds a lot of potential for maritime freight transport. In 2018, the seaports of Vietnam handled 524.7 million metric ton of cargo, 19% more than that in 2017. The country has 1,593 ships, with total capacity of about 7.8 million DWT as of December 2018, ranking fourth in ASEAN and 30th globally. Additionally, Vietnam has 272 wharfs with an accumulated annual capacity exceeding 550 million metric ton. There are around 1,300 businesses in the country providing maritime businesses; however, they fulfil only a portion of the market demand. The maritime sector of the country needs investments, and as it grows, the sector is likely to have a profound impact on the economy.

The Vietnamese government plans to make Vietnam a powerful maritime country by 2030. It aims to increase the maritime sector contribution to GDP to 10%. Further, the government aims to increase the contribution of the 28 coastal cities and provinces to the Vietnamese economy to 65% – 70%, which was around 60% in 2017. The total cargo handled by Vietnamese seaports increased by 9.8% between 2011 and 2017. The country aims to increase the throughput to 640 to 680 million metric ton, per year, by 2020, and 1,040 to 1,160 metric ton, per year, by 2030. The government is also looking to reduce the dependence on road transport and cut the volume of goods transported on roads.

Shift of Manufacturing Facilities – Logistics Demand to Rise

Over the last 20 years, Vietnam has established itself as one of the brightest manufacturing hotspots in Southeast Asia. From 1986 to 2018, land allotted to industrial parks increased from 335 hectares to an impressive 80,000 hectares. Owing to low labor costs, Vietnam has received a lot of capital over the years, for establishing assembling facilities and manufacturing factories. Raw materials and mechanical spare parts for manufacturing and production purposes are one of the key imports of the country. Raw materials for manufacturing are imported into the country and the manufactured products are exported, which demand an effective logistics sector, supporting the manufacturing sector of the country.

The country is establishing itself as an export-driven economy. The government is encouraging business in the manufacturing sector and is attracting investments in this sector, by establishing economic zones and industrial parks. The manufacturing and processing sectors received the highest FDI in 2017, close to 44% of the total. In recent years, the number of businesses that relocated their operations from China to Vietnam has been increasing. The rising costs in China, the country moving away from labour-intensive industries, and moving up the value chain is leading the businesses to relocate their manufacturing facilities to Southeast Asia, and the proximity and geographic location of Vietnam makes it a viable option. Moreover, Vietnam has lot of trade agreements (around 17 FTAs), which create a favourable business environment for domestic and foreign companies.

Competitive Landscape
The logistics market landscape of Vietnam is highly fragmented in nature and most of the players are small- and medium-sized firms providing low-value-added logistics services. There are more than 3,000 logistics companies, and 90% of them have a registered capital of less than VND 10 billion. Only 5% of these have a capital in the range of VND 10-20 billion, while the remaining have more than VND 20 billion. The competition between the domestic logistic companies is fierce, and the Vietnamese freight and logistics market is dominated by foreign companies. Even though the foreign logistics firms account for less share of transportation volume, these take 70%-80% of the revenue of the logistics market. This highly fragmented nature is also limiting the logistics potential of Vietnam up to some extent.

Reasons to Purchase this report:
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Thailand Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)


New York, July 28, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Thailand Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)” – https://www.reportlinker.com/p05865767/?utm_source=GNW
Thailand’s ranking was second only to Singapore in ASEAN, overtaking Malaysia, and was seventh in Asia. Thailand has extensively invested in transport infrastructure under the 12th National Economic and Social Development Plan, which aims to cut the country’s logistics costs to 12% of GDP by 2021 from 14% in 2016 when the 11th Plan (2012-16) ended. The 12th Plan (2017-2021) will call not only for transport infrastructure development in major cities and border towns, but also improved connectivity with neighboring countries.

Thailand’s robust growth rate of a few years ago has since slowed down. Its GDP growth has trailed its regional neighbors in the recent years, hitting a 3-4% stride since 2015, while Vietnam is growing at close to 7%; the government has embarked on programs in an effort to turn this scenario around. Thailand 4.0 envisions a new economic model for the country, in order to bring it to the forefront of the global digital economy.

Scope of the Report
A complete background analysis of the Thailand freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries, is covered in the report

Key Market Trends
Growing E-commerce and Increasing Urbanization Propels Demand for Logistics Services

As incomes in the ASEAN countries steadily rise, demand for consumer goods is created, with an evolved e-commerce ecosystem and increased spending of people in those countries. The second-largest economy of ASEAN, Thailand has one of the region’s highest number of internet users. There are around 57 million internet users in the country that are well versed in the use of digital technologies, mobile, and e-commerce. The expanding internet user base has made Thailand an ideal growth environment for e-commerce businesses.

The continued expansion of e-commerce business has created demand for logistics space and has brought significant changes in the supply chain and logistics operations in Thailand. Many courier companies have launched their cost-effective and high-quality logistics services in the country and brought domestic end-to-end delivery to the market. Many other companies have established central warehouses, along with smaller drop off and pickup points across the nation, in order to sustain the rise in demand. For small and medium enterprises (SME), this means greater convenience and a quicker process to deliver to their consumers, at much lesser cost. Central Group, Aden, DHL Express Thailand, Kerry Express, Lazada, Pomelo, and Shopee, are some of the major e-commerce and logistics companies in the country. Additionally, the air freight handled at Thai airports is significantly increasing, owing to the on-going demand created by e-commerce. AOT’s airports handled more than 1.5 million metric ton of freight in 2017.

Thailand’s Emerging Automotive Industry Provides Opportunities for Contract Logistics

Thailand offers excellent investment potential as a leading automotive production base in the ASEAN region, a fast-developing region for the automotive manufacturing industry. Over 50 years, the country has developed from an assembler of auto parts and components into a top automotive manufacturing and export hub. With shipments bound for around 100 countries, Thailand is the 13th-largest automotive parts exporter and the sixth-largest commercial vehicle manufacturer in the world, and the largest in the ASEAN region. By 2020, Thailand aims to manufacture over 3,500,000 units of vehicles to become one of the top nations in the global automotive market.

The country has a presence of virtually all of the world’s leading automakers, assemblers, and component manufacturers. Companies, such as Toyota, Isuzu, Honda, Mitsubishi, Nissan, and BMW, together account for a lion’s share of the approximately two million vehicles produced in the country each year. The presence of multiple companies denotes the increasing opportunity for the management of their supply chains, and hence, logistics service providers are benefiting from the country’s prosperous automotive industry. Automotive logistics has rapidly become one of the most important sectors in Thailand and is still continuing to grow to this day. Recognizing the importance, ANJI-NYK logistics (Thailand), a leading automotive logistics provider, offers automobile manufacturers in Thailand with end-to-end automotive logistics, which focuses on delivering finished vehicles and automotive spare parts.

Competitive Landscape
The logistics market landscape of Thailand is fragmented in nature, with a mix of global and local players. According to industry sources, DHL holds a significant position in the Thai logistics market, with a foothold in air and sea freight and their expertise in 3PL services. Other global players, such as CEVA, DB Schenker, Nippon Express, Expeditors, Yusen, and FedEx, have a significant presence in the market in specific segments. Additionally, Japanese logistics companies are planning to expand their services in the market, due to the rising trade and industrial activities. The Thai manufacturing industry is dominated by global players and these global players prefer global counterparts for their logistics operations. For instance, Japanese and Korean manufacturers in Thailand bring their domestic logistics partners or prefer to tie up with service providers of the same origin.

With the evolution of Asian Economic Community (AEC), Thailand’s position as a transportation hub for the Greater Mekong Sub-region (GMS) has been strengthened. This initiative has increased the country’s opportunities for cross-border trades and import-export shipments. The most dominant mode of transportation is road transportation. Fierce competition is expected to occur, as professional multinational logistics companies owned by foreigners are expected to use their competitive advantage to gain significant market shares and compete with local logistics providers. To withstand the competition, domestic logistics firms have to identify the risks for their services among the neighboring countries and find avenues to manage the risks.

Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– Report customization as per the client’s requirements
– 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05865767/?utm_source=GNW

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Malaysia Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)


New York, July 10, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Malaysia Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024)” – https://www.reportlinker.com/p05778408/?utm_source=GNW
is growing, due to the high margins and rising demand. The economy of the country is expected to grow between 5% and 6%, driving the growth of the logistics industry further. As the growth of the logistics sector is expected to be positive in the future, there is much scope for improvement. To enable the logistics sector to handle greater volumes of freight, to speed up the time taken to deliver goods across the supply chains, and to lower the cost of this delivery, several improvements need to be made. While the logistics infrastructure of the country is improving, there is a need for continuous investment into infrastructure, such as port upgrades and expansion, road networks, and advanced information technology (IT) system.

Majority of the population of the country is concentrated along the coastline of the country, which makes the logistics cost low. However, efficient transport links are needed, connecting the seaports and the cities through road and rail. According to the World Bank Logistics Performance Index (LPI), in 2016, Malaysia had the highest LPI score after Singapore in the Southeast Asian region. However, Thailand and Vietnam have overtaken Malaysia according to the LPI scores of 2018. The LPI rank of Malaysia among the 160 countries in the world declined to the 41st position in 2018 from 32nd position in 2016.

Scope of the Report
A complete background analysis of the Malaysian freight and logistics market, which includes an assessment of the economy, contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries, is covered in the report.

Key Market Trends
Growing Maritime Sector – The Country Aims to Become a Transshipment Hub

Malaysia has a total coastline of 4,675 km (2,905 mi); Peninsular Malaysia has 2,068 km (1,285 mi) while East Malaysia has 2,607 km (1,620 mi) of coastline. Malaysia has the 29th longest coastline in the world. The prominent ports in Malaysia, which account for the major share of goods traded, are, namely, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port, Penang Port, Bintulu Port, and Kemaman Port. The Malaysian shipping industry has been growing exponentially over the years. The strategic location of the ports of Malaysia, coupled with the low cost for docking, acts as a prominent driver for the market. In addition to its geographical advantage, the support of numerous shipyards, ports, and terminals presents opportunities to further develop the maritime economy of the country. Even though, the maritime industry in Malaysia faces rough waters owing to overcapacity and tight financing, opportunities are still aplenty.

The country’s strategic geographic location makes it an important transshipment hub. Port Klang, the major port of the country, is the most important transshipment hub, with almost 70% of the volume being transshipment. However, certain challenges exist for the ports of Malaysia; the delay in processes in cargo businesses has been effecting the logistics performance of the country, resulting in Malaysian ports losing to their regional competitors. PSA in Singapore, which is the second-largest container port in the world, is one of the most advanced ports that can handle huge amounts of cargo. Additionally, the change ofthe government in Malaysia is expected to have a significant impact on the country’s logistics sector in the future. With the change of government in Malaysia after six decades, the new government has announced some economic and financial reforms, such as abolishing GST, reducing excise duty, restoring the currency value of Ringgit, reducing the currency dependence on foreign workers, etc.

Halal Logistics – Emerging Sector

The halal market is fast becoming recognized as a vitally important emerging market. Safety and quality assurance are the reasons for halal products being widely recognized. The major market for halal products exists in Asia and the Middle East. There is a big potential for Malaysian companies to manufacture and export halal certified products to the global market. The country can promote itself as a halal gateway and attract investments in this sector. Lack of proper certification is one of the challenges in the halal industry. Kontena Nasional Bhd. (KNB) is a provider of end-to-end halal logistics services in Malaysia. The company holds the distinction of being the first logistics provider to receive the halal logistics provider certification from the Department of Islamic Development Malaysia (Jakim) in 2009.

As of August 2018, 42 countries worldwide have recognized JAKIM’s halal certification. Asian countries, such as China, Taiwan, Japan, and Hong Kong are the top countries demanding the JAKIM halal logistics certification. Nestle Malaysia has achieved enormous success as a halal hub and is the biggest producer of halal products for Nestle. This propelled Nestle to be one of the top vendors in the halal food market, which has, in turn, attracted the Brazillian food giant, BRF, to expand its halal food business to Malaysia and other ASEAN countries, in partnership with the Kuok Group.

Competitive Landscape
Currently, the Malaysian freight and logistics market landscape is fragmented with a large number of players. For instance, the trucking industry of the country is made of independent truckers and SMEs, who account for more than 70% of the market. However, the industry is expected to transform into a consolidated state in the future. In order to gain significant market share and serve the rising demand, the companies are adopting the merger and acquisition trend. Especially, the rise in e-commerce is resulting in vertical and horizontal consolidation among the logistics and e-commerce players, to gain scale and network.

Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– Report customization as per the client’s requirements
– 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05778408/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need – instantly, in one place.

__________________________

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Intl: +1 339-368-6001



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Alibaba integrates freight procurement into B2B e-commerce site


Dive Brief:

  • Alibaba is integrating freight procurement into its business-to-business e-commerce platform, the company announced Tuesday. Alibaba Freight had been in a pilot phase for a couple of months and will now be available to buyers on certain trade routes.
  • Alibaba Freight will be powered by the Freightos online freight marketplace and allow shippers to “compare, book, manage and track ocean and air freight in real-time online,” the company said in a press release.
  • Shippers using Alibaba’s platform are often moving containers and pallets. The new service will allow them to compare prices for air and ocean freight within the e-commerce platform, the company said.

Dive Insight:

Alibaba Freight debuts at a time when the world of freight procurement has become increasingly digitized. The announcement comes more than a year after Amazon launched its brokerage site.

Alibaba Freight is marketing itself as a way for shippers already using the e-commerce platform to compare rates, arrange bulk shipments and track them in real time.

“This is a substantial step forward for how freight will be procured, being integrated into the largest B2B marketplace,” John Caplan, the president of North America and Europe at Alibaba.com, said during a press conference Monday.

Shippers will be able to select either less than container or full container loads for ocean cargo. Ocean and airfreight are offered on cargo moving from China to Australia, Germany, Great Britain and the United States. Ocean is the only option for shipments leaving Hong Kong, Taiwan and Vietnam.

Origin Ships to Freight option
China

United States, Great Britain, Canada, Germany, Australia

Ocean, Air
Taiwan United States, Great Britain, Canada Ocean
Hong Kong United States, Great Britain, Canada Ocean
Vietnam Unites States, Great Britain Ocean

SOURCE: ship.alibaba.com

“Our goal was to make it more transparent, more upfront and more tied to the natural activity of sourcing,” Jamin Dick, the head of supply chain for North American B2B at Alibaba.com, told Supply Chain Dive in an interview. Prior to Alibaba Freight, shippers would have likely worked through a freight forwarder or they would have left transportation up to the seller in China, he said.

Connecting the process of freight procurement with product sourcing means trade information can be shared easily on the platform, which could cut down on documentation errors that arise in more manual processes.

The shipper is able to choose the carrier, the type of freight and the ports where their cargo will travel, Caplan said.

Alibaba Freight

 

Users first fill out the information on the shipment, specifying whether it is a pallet or a container, and list the dimensions. Then the platform asks where the shipment will be picked up and delivered, providing three options: port, factory/warehouse or building without a loading dock. The platform then gives the user the option to add customs clearances, customs bonds and insurance.

Users can view shipment options filtered by the cheapest, quickest and greenest choices.

The company also announced Alibaba Payment Terms to help companies finance cross-boarder trade, giving buyers 60 days to pay for goods after they’re shipped.



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