Logistics News with TELS GLOBAL
EU Commission cuts 2024 euro zone growth forecast
According to the EU Commission’s forecasts, the gross domestic product in the 20 countries sharing the euro currency will increase only 0.8% in 2024 rather than 1.2% it expected last November, but it will still be up from a 0.5% rise in 2023.
Maersk will refrain from routes in the Red Sea, possibly until the third quarter
The delivery time of goods shipped from Asia to Europe has increased by 10–15 days due to attacks in the Red Sea, and the cost of shipping has increased by 400%.
OECD: Global GDP growth is expected to slow, forecasts are lowered for the euro zone
The growth of the global GDP will slow to 2.9% in 2024 from 3.1% recorded at the end of 2023. In 2025, the growth will reach 3%.
Road freight in Europe: contract rates rise while spot rates fall
According to the latest comparative report on the progression of road freight rates in Europe by the analysts at Transport Intelligence and Upply, the spot rates in Europe continued to fall below the contracted levels in the fourth quarter of 2023.
The world's largest port of Shanghai increased container transshipment by 18% in January
The demand for maritime container transportation last year was 0.3% higher than a year earlier, following a decline of more than 4% in 2022.
Significant decline in rail transportation between the EU and China
The PRC is likely to lose its status as Germany’s main trading partner in 2024, which it has consistently held since 2016.
Red Sea crisis boosts interest in air transportation
The disruptions in supply chains caused by the Red Sea crisis are forcing companies to increasingly seek alternative transportation options from Asia to Europe.
Europe barely escaped a technical recession at the end of 2023
The EU economy struggled to escape a technical recession in the last three months of 2023. The decline in the German GDP was offset by a strong GDP growth in Portugal and Spain, as well as the strengthening indicator in Italy.
Land bridges bypassing the Red Sea
Hapag-Lloyd, German Shipping Company, has introduced an overland route through the UAE and Saudi Arabia to avoid facing the Houthis in the Gulf of Aden and Bab el-Mandeb.
Marine carriers announced the latest increase of rates in February
From the beginning of crisis to the mid-December the cost of container delivery from Asia to Europe increased 3.5 times, to the North America – twice.
Global trade declines, yet regional trade grows
The fragmentation of economies is simultaneously leading to a revival of industrial policy, the WEF survey suggests. This strategy may lead to new points of economic growth and new industries.
Germany’s GDP and foreign trade are in decline, but there is still no recession
The industrial production volume in Germany in 2023 decreased by 2% compared to the previous year’s result.
Antwerp-Bruges port complex reduced cargo and container turnover
The container traffic, which constitutes half of the port’s turnover, decreased by 6% in tons and 7% in TEUs.
Trade wars escalate over China’s manufacturing growth
To avoid recession, China is investing in manufacturing and exporting up to half of its turn out goods. This may provoke trade wars with the US, Europe, and other countries, Bloomberg notes.
Air cargo turnover and capacity supply continues to increase
The air cargo traffic through the end of November 2023 increased in all major regions of the world.
Red Sea crisis boosts demand for rail transportation
It is expected that spot rates for rail transportation towards Europe will increase by more than 20% in January compared to the previous month.
Asia will be the growth driver of the global contract logistics market
The analysts at Transport Intelligence expect the global contract logistics market to grow at a significantly slower pace in 2023 compared to the previous year, which will be the lowest year-on-year growth since 2016.
Transportation prices from Asia to Europe doubled as a result of the Houthi attacks
The cost of container transportation from Asia to Europe has doubled amid the crisis in the Red Sea, which is associated with the increasing frequency of rocket attacks on merchant ships by Yemen’s rebels, the Houthis.
Turkish exporters are developing a Plan B
Turkish exporters are developing a Plan B to export their products due to the losses they are incurring in Europe.
China's foreign trade has declined, yet not with everyone
China's total imports and exports for the first 10 months of 2023 have dropped overall by 6.5 percent and 5.6 percent, respectively.