Nearly 69% of logistics professionals are worried about a global retreat from free trade, a survey has found.
Logistics firm Agility, in its annual report on emerging markets, said the concern follows the election of Trump, UK’s vote to leave the European Union and the collapse of a number of regional and global trade talks.
It also said of the 800 global logistics professionals asked, 42.8% said they felt the IMF’s emerging market growth forecast of 4.6% for 2017 was too optimistic.
Alongside the industry survey, the report compiles an annual index ranking emerging economies on their attractiveness to logistics providers. China, India and the UAE topped the list of 50 this year.
The report said robust growth and reforms to taxation and the economy pushed India into the number two spot, overtaking the UAE, while the industry survey named India as the country with the most logistics potential and where respondents said their companies were most likely to invest.
Almost half of the ranked countries saw their score fall compared to last year, a sign of stagnation in global trade growth, the report said.
The UAE, ranked number three overall, was the best country for business climate, logistics infrastructure and for transport connections. Gulf countries scored particularly well on indicators for business climate.
Nigeria and South Africa were among the countries that fell the furthest in the rankings compared to last year, nine places and four places respectively. Conversely, it was some of the smaller African countries, including Kenya and Ethiopia, which saw some of the biggest rises.
Iran was the most improved country, climbing eight places to become 18th overall. The logistics industry was “fascinated [by] the implications of its emergence from years of international isolation,” the report said.
Of those lowest ranked in the index, most were experiencing some form of conflict or unrest the report noted.
The index ranked countries based on markers indicating market growth, accessibility, stability and connectedness, among other things.
Top five emerging economies for logistics:
5. Saudi Arabia
Five worse emerging economies:
| A Supply Management release | January 24, 2017 |
Next week CentrePort will begin work to secure its gantry cranes, as it develops plans to resume modified container operations within four to six months.
The 14 November earthquake caused significant damage to the Port, especially to the container area. This made its two gantry cranes inoperable. Each crane is 86 metres high and weighs 720 tonnes.
“Over the coming weeks we will secure the cranes, as the first stage in our plan to develop operations for customers and build resilience in case of another significant event,” Chief Executive Derek Nind said.
“Meanwhile, we continue to work with shipping lines on options for using geared ships as an interim solution. We have already had two of these visit the Port since the earthquake.
“For the medium term we are developing a plan for interim works that could restore modified container operations within four to six months. This would immediately improve CentrePort’s capacity and productivity, allowing us to serve the needs of importers and exporters in the central region. We will be keeping our customers informed as these plans develop.
“We know how important container shipping is to the regional economy. That’s why we worked hard to quickly restore limited container movements using ships with their own cranes. We are now assessing longer term options, to keep freight costs low for Wellington’s businesses.
“Over the coming days CentrePort will also commence maintenance on the berth pockets alongside part of Aotea Quay wharf. This will increase the flexibility of operations at the Port, since the earthquake has damaged Aotea Quay 1 and Thorndon Container Wharf.
“CentrePort is grateful to its customers for their ongoing support and patience during the recovery process.”
CentrePort’s key trades of ferries, fuel, logs, cars, and cruise ships continue to operate normally.
The first freight train has set off from China to the UK on the reintroduced historic Silk Road trade route.
The train, carrying household items, garments, textiles, bags and suitcases, will take around 18 days to travel more than 12,000km.
The train, which left on New Year’s Day from Yiwu in eastern Zhejiang province, will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France before arriving in London.
According to the China Railway Corporation (CRC), London will be the 15th European city to receive freight train services from China.
The CRC said the service would “improve China-Britain trade ties, strengthen connectivity with western Europe, while better serving China’s Belt and Road initiative, an infrastructure and trade network connecting Asia with Europe and Africa along ancient trade routes”, China’s state-owned news agency Xinhua reported.
Under China’s officially named One Belt, One Road initiative, billions of dollars will be ploughed into infrastructure along historic trade routes in a bid to shift the world’s centre of economic gravity.
China is the EU’s second biggest trading partner after the US and in 2015 the EU imported goods worth €350.5bn from China, up 4.4% on 2014.
Asahi Beverages, comprising some of Australia and New Zealand’s most successful beverage businesses, including Schweppes Australia, Asahi Premium Beverages, Independent Liquor and The Better Drinks Co., has awarded Dematic a contract to build a high bay warehouse storage facility.
The warehouse in Heathwood, Queensland, will consist of a satellite storage solution containing six aisles of six-deep satellite ColbyRack capable of storing 28,000 pallets. The automated storage and retrieval system (ASRS) will include six new Dematic RapidStore Storage Retrieval Machines (SRMs) with Dematic’s latest “free roaming” Automover satellite carts. The solution will also feature Skate Auto-loading Truck Docks, a pallet conveyor system, stretch wrapper, automatic barcode labelling, and a full case picking area.
“Dematic was selected by Asahi Beverages as their preferred logistics integration partner following an extensive tender process that assessed experience, comprehensiveness of offering, and local capability,” said David Rubie, Dematic’s Manager of Industry Logistics. “We look forward to working with Asahi Beverages to deliver a supply chain solution that is a core component of their ongoing success.”
“Our new Queensland high bay warehouse is another major step forward in the transformation of our customer centric logistics network,” said Tracey Wagner, General Manager, Logistics and Customer Operations, Asahi Beverages. “We are pleased to be working with an experienced integrator such as Dematic on this crucial program.
SHANGHAI, Dec. 14, 2016 /PRNewswire/ -- Goodman Group (Goodman or the Group) is pleased to announce that it has secured five new major customer commitments totalling 98,120 sqm at the Goodman Pudong Airport Logistics Park (GPALP). The leasing success achieved reflects the continued robust demand for well located, high quality warehouse and distribution facilities in and around key gateway cities like Shanghai.
Located next to the Pudong International Airport's third runway, which is designated for airfreight only, the park is well serviced by strong transportation infrastructure. It comprises two-storey ramped up warehouses with sustainable features such as LED lighting, low-e glass curtain walls and steel structures made out of recycled materials.
The five customers who have recently committed to GPALP are:
China Postal Express & Logistics, China's leading postal services provide
DSV, a Danish transport and logistics service specialist
NTS Logistics Management Company, a leading Chinese integrated transportation firm
Shi Hao Vehicle Logistics Solutions, a Chinese vehicle logistics company
Success Master Consultancy Co. Ltd., an automobile pre-delivery inspection service provider
Kristoffer Harvey, Chief Executive Officer, Greater China, Goodman said, "The strong demand for space at the Goodman Pudong Airport Logistics Park underscores our commitment to making it the preferred choice for companies wanting to locate in excellent proximity to China's second busiest airport. We are pleased to welcome so many renowned customers to this facility and to be able to meet their requirements with our modern logistics solutions and high quality customer service."
China Postal Express & Logistics, one of the park's new customers, committed to a total of 19,769 sqm.
Wang Aiping, General Manager, Shanghai Branch, China Postal Express & Logistics said, "Shanghai Postal Express & Logistics is a modern and integrated state-owned express delivery and logistics company that professionally operates and manages Shanghai's postal express and logistics services. Our business covers all of China and more than 200 countries overseas. Goodman has a strong reputation in the market due to the high quality of its warehouses, as well as its excellent property management capabilities. We are very honoured to occupy Goodman's best-in-class facility, which has been built in line with the highest standards. The adequate amount of space provided by the Goodman Pudong Airport Logisitics Park will play a key role in helping Shanghai Postal Express & Logistics improve its management and operational capabilities, boost its efficiency and provide integrated customer services. Meanwhile, Shanghai Postal Express & Logistics will also offer convenient, rapid, safe and reliable express delivery and logistics services to all segments of society."
Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.
Goodman's global property expertise, integrated own+develop+manage customer service offering and significant fund management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver sustainable long-term returns for its Partners.
Defence Minister Gerry Brownlee announced today that approval has been given for the New Zealand Defence Force to progress work on the Consolidated Logistics project at a cost of $130 million over five years.
“New Zealand’s Defence Force holds a wide range of equipment, all of which needs to be stored, maintained and serviced so that it is ready and safe to use when required,” Mr Brownlee says.
“However the systems presently used to do this need to be brought into the modern age.
“More efficient management will allow the Defence Force to reduce the volumes of some equipment held and to be more responsive to new technologies and threats.
“This in turn ensures the capital invested in Defence is able to be focussed on the equipment of highest priority.
“In recent times many other countries have modernised the way their militaries manage logistics, getting greater value for money by managing their equipment holdings more efficiently.
“The New Zealand Defence Force will implement the best of these proven systems,” Mr Brownlee says.
The investment will not change how larger Defence assets, such as ships and aircraft, are managed, as these large systems are already well managed.
However smaller asset types, including vehicle fleets and firearms, will be centralised into regional pools where they can be stored and more efficiently maintained.
“Adopting this approach will create an opportunity to shift around $1.6 billion of capital over the next 25 years from inefficient holdings to a focussed investment on priority capabilities.
“This is about using Defence Force assets better and ensuring taxpayer’s money is being well spent,” Mr Brownlee says.
The Defence Force will now complete plans to upgrade and build new infrastructure, such as storage facilities and maintenance workshops at Linton in the Manawatu and at Burnham near Christchurch. Some of the existing facilities date back to the 1940s.
“Defence will also modernise its computer inventory systems so that all stock holdings can be tracked and their usage history analysed,” Mr Brownlee says.
Nearly all of the implementation costs will be contracted to local industry or to organisations with a local subsidiary or partner. Around $50 million is budgeted for construction projects.
The organisational changes proposed, and outsourcing of maintenance, repair and warehousing functions will create at least 50 new jobs, mostly in the Wellington region and at Linton and Burnham.
CEVA Logistics, one of the world’s largest supply chain management companies has announced the appointment of Carlos Velez Rodriguez as Managing Director for its Australia & New Zealand cluster. Based in Melbourne, he will report to the company’s Chief Executive Officer, Xavier Urbain.
Velez Rodriguez joins CEVA from FM Logistic where he was Group Managing Director Central Europe for the last decade and led a team of 5,000 individuals. He has a proven track record in the logistics sector and has held a number of commercial roles at companies in Europe, the USA and Latin America. Born in Colombia, he is an Austrian citizen.
His appointment is effective immediately. Commenting on Velez Rodriguez’s arrival, Xavier Urbain says: “I am delighted to have someone of Carlos’s caliber to lead our operations in Australia & New Zealand. His extensive industry knowledge, experience in leading large organizations and his collaborative style make him an excellent successor for this critical role in this important cluster.”
Kawerau's drive to develop an inland container terminal serving the Eastern Bay of Plenty is gaining traction, with a decision expected early next year on whether or not to go ahead.
A research study being carried out by Rotorua's Scion forestry research institute will be completed by year end, with a stakeholders meeting scheduled for January in order to make a decision.
"The research project is coming to an end and the indicative results to date are very promising," said Glenn Sutton, economic development manager at Kawerau District Council, who has been a key proponent of the terminal.
"I'm passionate about this, but we have to wait until we have the science in our hands to back it up."
If the project gets the green light, it would see a container terminal developed on a five-to-eight hectare site, with a possible throughput that could be as high as 15,000 40-foot equivalent units annually, and a dedicated daily container trainload, he said.
APL is seeking to capitalize on the fact China is New Zealand’s second-largest trading partner for exports and third-largest for imports.
CMA CGM’s newly acquired APL will begin a direct weekly service between North Asia ports and New Zealand from the end of December, increasing coverage in response to fast-growing trade with China.
The New Zealand Express II, or NZ2, service will increase its port calls in New Zealand to five to strengthen APL’s presence in the Oceania trade lane. With the launch of the NZ2 service, APL will have a network of six Oceania services that connect Asia with Brisbane in Australia and New Zealand.
“APL introduced the new NZ2 service to serve the China-New Zealand market in a direct and more efficient way. Compared to transshipment options, the NZ2 service provides our customers with dedicated and faster connectivity between the North Asia and Oceania markets,” said Tonnie Lim, APL head of intra-Asia trade.
The new NZ2 service will be made available through slot swaps on ANL’s ANZEX service, and will deploy seven vessels with capacities between 4,132 and 4,578 twenty-foot-equivalent units. It will complement the existing New Zealand Express, or NZE, service, with a port rotation of Shanghai, Ningbo, Chiwan, Kaohsiung, Brisbane, Auckland, Port Chalmers, Lyttelton, Napier, Tauranga, Hong Kong, and Keelung.
“The direct service will enable businesses to accelerate their products’ speed and access to these markets, as they seize new growth opportunities in the region,” Lim said.
New Zealand’s trade relationship with China has nearly tripled during the past decade, with two-way trade rising from $8.2 billion in the year ended June 2007 to $23 billion up to June this year. Annual exports to China have quadrupled and annual imports from China have doubled since 2007, according to the country’s Ministry for Foreign Affairs and Trade.
“We have traded more with China since the free trade agreement entered into force in 2008 than in all our previous history, and growth is faster with China than any of our other major trading partners,” the ministry said in a statement.
China is New Zealand’s second-largest trading partner for exports and third-largest for imports. In the year ended June 2016, 17 percent of the country’s goods and services exports went to China and 16 percent of goods and services imports came from China.
New Zealand’s top goods export to China in the past year was milk powder, and has been since 2008. The trade ministry said at its peak in the year ended June 2014, milk powder accounted for more than 40 percent of New Zealand’s total annual export value of goods and services to China. Other leading exports are untreated logs and beef and lamb.
Clothing was the largest import during the past decade, but has dropped from around 16 percent to 11 percent of the total import value from China this year.
Also capitalizing on the rising trade between China and New Zealand is Maersk Line that in October inserted Tauranga on the westbound northward leg of its AC-3 Asia-west coast South America service, a weekly service connecting Mexico, Panama, Colombia, Peru, and Chile directly to New Zealand.
Leading the AC-3 service was Aotea Maersk, and its capacity of 9,640 TEUs made it the largest container vessel ever to call at a New Zealand port. The port of Tauranga has a long-term strategy to extend its freight catchment and consolidate its position as the country's leading freight gateway. Handling larger vessels is a key part of this focus and its shipping channels have been widened and deepened, to 47.6 feet inside the harbor entrance and 51.8 feet outside the harbor.
That long-term plan also included signing a 10-year deal with logistics company Kotahi that guaranteed Tauranga 1.8 million TEUs during that period.
Maersk Line and APL are members of the Asia Australia Discussion Agreement along with ANL, China Cosco Shipping, Evergreen Line, Hamburg Sud, Hyundai Merchant Marine, Mediterranean Shipping Co., Orient Overseas Container Line, Pacific International Line, Sinotrans Container Lines, T.S. Lines, and Yang Ming Line.