Did You Know That...

• Container spot rates dropped by 43% in Q3/2024, marking the worst third-quarter performance in a non-Covid year since the Shanghai Containerised Freight Index (SCFI) was introduced in 2009.

• US port workers and operators reached a deal to end the East Coast strike. After a brief three-day strike, the ILA and USMX reached a tentative wage agreement, extending the existing contract until January 15. However, the backlog at ports could take weeks to clear, with offshore queues rising to 60 containerships by the time the deal was reached. Source

• Side effect: US port strikes boosted airfreight market. The disruption at ports caused a surge in demand for airfreight, driving up prices and availability.

• European Commission approves MSC’s HHLA deal. MSC will take a minority stake in the operator HHLA, with the City of Hamburg remaining the majority stakeholder. HHLA operates three of the four container terminals at the Port of Hamburg, along with a ro-ro and bulk terminal.

• Türkye and Central Asia strengthen ties. The Organisation of Turkic States (OTS), led by Türkye, is counterbalancing Russia's regional influence. Since 2015, Türkye’s trade with other Turkic states has doubled, reaching $12.6 billion in 2023. The OTS continues to promote co-operation in various areas, bridging Europe and Asia and including countries like Azerbaijan, Turkmenistan, Kyrgyzstan, Uzbekistan, Kazakhstan, and Turkic minorities in Russia and China.

• Alliance reshuffle impacts European and Mediterranean port majors. New alliance networks announced for 2025 on the Asia-Europe trade routes will drive increased business for certain ports, while others may suffer from reduced call quotas and missed lucrative loops.

• Deutsche Bahn sells DB Schenker to DSV. In an extraordinary meeting, Deutsche Bahn’s board approved the sale of its logistics arm, DB Schenker, to Denmark-based DSV for over $15 billion. The sale is expected to significantly reduce Deutsche Bahn's debt.

• Hong Kong aims to reassert its position as a global maritime hub. The newly established Hong Kong Chamber of Shipping seeks to leverage support from Beijing and the vast economy of mainland China. A key priority is using China’s production capacity and industrial chains to provide clean energy and fuel for shipping.

• Final call for attendees to the 7th China International Import Expo (CIIE) 2024. FS International is finalizing the list of attendees for the CIIE, to be held from November 5th to 10th, 2024, at the National Exhibition and Convention Center, Shanghai. For inquiries, please contact Ms. Bella (bella.gz@fssouthchina.com).

• Bee Logistics receives ASEAN Business Award (ABA) 2024. Bee Logistics, one of only two Vietnamese companies recognized in the PIS category, celebrates its third award and its elevation to large enterprise status. This honor coincides with its 20th anniversary, highlighting Bee Logistics' global vision and dedication to innovative logistics solutions. The award ceremony will be held on October 9, 2024, in Vientiane, Laos.

• China tightens rules on hazardous cargo at Ningbo. Container lines are facing tighter regulations in China regarding the handling of hazardous cargo, further complicating schedules already pressured by longer transits around the Cape of Good Hope.

• Gothenburg launches a new ro-ro service to Asia. A new shipping service has commenced between the Port of Gothenburg and Asia, offering direct connections to Chinese ports via Singapore.

• New member in Azerbaijan. We are excited to announce the addition of a new member in Azerbaijan. The latest update on the members and primary contacts list is attached.

• Which country leads the world in innovation? According to the Global Innovation Index, Switzerland ranks first, followed by Sweden. The US ranks third, China 11th, Singapore 4th, and Britain 5th. The index measures innovation based on both outputs, like patents and scientific publications, and inputs, such as R&D spending and venture-capital deals.

• Moerdijk port strengthens ties with Bilbao. A delegation from Moerdijk recently visited Bilbao to enhance commercial relations, particularly in the container trade.

• Florida ports close as Hurricane Milton approaches. With the Category 5 hurricane expected to make landfall near Tampa Bay, the busiest port area in Florida, all inbound traffic has been suspended in preparation for the storm.

• AI researchers awarded the Nobel Prize for Physics. Geoffrey Hinton and John Hopfield were honored for their contributions, expanding the traditional definition of the field.

• Fun Fact: "Go." is the shortest complete sentence in the English language.