Did You Know That...

• Arthur Santibunyarat, CEO of Amazing Logistics & Supply Chain in Thailand, has passed away. Our deepest condolences to his family and colleagues. RIP Arthur, on behalf of the entire EAA Network.

• MSC puts ports at the center of its network strategy. The carrier giant favors direct port pairings over the hub-and-spoke model. As supply chains diversify, direct port calls provide more agility, according to Søren Toft. Owning stakes in ports secures a Formula One service, boosting efficiency.

• Container lines are set to post their highest quarterly profits since the pandemic. Asian carrier disclosures imply that 3Q24 consensus on US-listed Zim is too low. Thanks to the Red Sea crisis and cargo pull-forward ahead of the US port strike, listed liner companies are poised for their best quarterly results in two years. However, this may mark the peak, with lower results expected ahead.

• DP World announces a GBP 1 billion expansion of London Gateway. The expansion aims to make London Gateway the UK's largest container port within five years. The project will add two new shipping berths, increasing the total to six, along with a second rail terminal. Once completed by 2030, the port will be able to berth six vessels over 400m in length.

• FS International opens its new Shanghai office. After months of preparation, our China partner has officially started operations at their brand-new office located at Room 4603-4605, 46/F, Luminia Building, No. 175 Long Yao Road, Xuhui District, Shanghai. We wish the FS Shanghai team great success in their new home!

• CMA CGM faces potential tax challenges. France’s windfall tax on high-earning companies could leave the carrier liable for hundreds of millions of euros. A boxship expert warns that other countries may follow France's lead if the tax proves a successful revenue generator.

• Europe's biggest ports combat drug smuggling. Antwerp-Bruges and Rotterdam have implemented several new measures to curb smuggling. Belgium and the Netherlands have reported their efforts to the International Maritime Organization, including controls to stop PIN code fraud.

• Maersk wins a High Court case. The court found that carriers are not required to verify the gross mass of shipments after a shipper switched copper for concrete. While the case failed on facts, carriers still have a duty to ensure Bills of Lading are not used for fraudulent purposes.

• ROSE Containerline celebrates its 30th anniversary. Founded by Neal Rosenberg at his kitchen table in 1994, the New York-based member will mark this fantastic milestone on October 31. Early congratulations to Neal and his team!

• New railways could transform South-East Asia, with China eager to assist. The region’s railways are old, disconnected, and cover just 24,000 km, equivalent to Mexico’s railway network, despite South-East Asia being twice its size. The completion of a semi-high-speed line from Kunming in China to Vientiane in Laos in 2021 could be the first step toward a rail line connecting all the way to Singapore.

• Trump tariff threats and China’s economic downturn could make Chinese New Year 2025 different. According to Maersk, the impact of the January 29 to February 3 holiday on global supply chains cannot be overstated, as factories across Asia shut down, creating bottlenecks. This year, the volatile factors of tariffs and the China slowdown will add to the challenges.

• Peru’s new Chancay Port set to open next month. The port, 60% owned by Cosco and 40% by Volcan, is scheduled for a “soft” launch next month, marking the beginning of a six-month ramp phase. The terminal will begin receiving regular container calls during this period.

• Avianca Cargo emphasizes Ecuador’s importance. At the Expoflor Ecuador trade fair last week, Avianca Cargo reaffirmed its commitment to the floriculture sector. Ecuador’s cargo transport has grown by about 20% over the last four years, with 90% of the country’s exports being flowers, mainly destined for the USA and Europe.

• Can AI rescue customer service? AI adoption in call centers is surging, with companies like Sonos using generative AI to handle customer service. Sierra, a startup co-founded by Bret Taylor, helped Sonos create an AI bot that exceeded expectations by solving technical issues with the Sonos app.

• Türkiye sees a rise in container transshipments. Transit traffic at ports like Aliağa and Kocaeli has increased sharply this year, with transshipments making up more than 20% of Türkiye’s total container traffic. This increase comes amid the EU’s focus on carbon leakage.

• DP World expands its logistics capacity. The Dubai-based company has purchased 47,000 containers as part of its strategy to dominate the entire logistics supply chain. DP World continues to invest heavily in both the logistics side of its business and its container port operations.

• Trump and Elon Musk share one big goal. Both aim to crush Tesla’s competition in the electric vehicle market.

• Nike’s share price holds strong after replacing John Donahoe as CEO with veteran executive Elliott Hill. Hill, who came out of retirement to take the position, is leading the sportswear giant in a new direction.

• Oil prices remain volatile. Concerns over potential Israeli strikes on Iran's energy infrastructure and the threat of hurricanes in America’s oil-producing Gulf region are driving oil price fluctuations.

• The Regional Europe Meeting in Vienna was a great success. Hosted by our esteemed member Columbus-Cargo, the three-day event featured discussions on trends in intra-Europe transport and more. A heartfelt thanks to all participants for their inspiring contributions. The next event will be the Annual Global Meeting from March 10-14, 2025, in Boracay, Philippines. Pre-registration is open, and approximately 90 delegates have already signed up. We expect over 100 participants—feel free to register if you haven’t yet!