Inteligencia De Mercado [Jun. 2024] Logistics Market Intelligence Report

In Korea, CLI expanded for 6 consecutive months, and GDP Growth Q1 at 1.3%, exports and domestics demand expected to recover.
In US, CLI expanded for 2 consecutive months, and GDP Growth Q1 slowed at 0.4% compared to last quarter

※ An economic cycle is largely divided into four stages. Expansion phase : If it is in an upward trend with more than 100 / Downward phase : If it is in a downward trend with more than 100 / Contraction phase : if it is in a downward trend with less than 100 / Recovery phase : if it is in an upward trend with less than 100
※ Europe : France, Germany, Italy, UK

China PMI is 49.5 in May, signaling a contraction in the manufacturing sector.
US PMI shows expansion at 51.3, but challenges like inflation, high interest rates still remain.

※ A leading indicator of the economic situation as a result of a monthly survey of more than 400 corporate purchasing/supply managers

78.6하락(5.8)

WTI slipped in May amid easing Middle East risks, rising output from non-OPEC countries, including the US, and diminished expectations of a US interest rate cut.
Despite OPEC+'s agreement to extend production cuts in early Jun, low demand from China, the largest consumer, is suppressing the rise of WTI.

SCFI is continuingly increased from Apr., it has topped 3,000 points since Aug. 2022. It has more than tripled from 2023 average.
Even though it is offseason, container rates is rising sharply. The recovery of US demand also is contributed to the rise in rates.

Freight rates expected to continue to rise in Jun as in previous month due to strong demand on key routes in North America, Europe and elsewhere, as well as ongoing Red Sea disruptions and port congestion.
The SCFI Composite Index for the next three months is expected to increase to 2,715 points in Jun '24 before gradually declining to 2,595 in Jul and 2,376 in Aug.

2024 demand outlook rose 0.6%p from Apr, but supply outlook also rose. So, imbalance between supply and demand remains.
Despite oversupply, Red Sea crisis continues to drive shortage of real vessel capacity.

[Asia] Saudi Port Authority Launches Levante Express Service
- In order to improve the connectivity between Saudi Arabia and major European ports, a new maritime service called Levante Express has been launched.
- It will provide direct flights to major ports such as La Spezia/Napoli, Italy, Mersin, Turkey, and Alexandria, Egypt, and will operate weekly and handle up to 15K TEUs of capacity.

[Americas] Increased the dwell time in LA/LB ports due to surge in imports
- Increased imports from Asia lead to a shortage of railway vehicles, and container congestion in some LA/LB terminals is increasing.
- UP and BNSF announced that the container processing period will no longer increase, and that they plan to expand the supply of railway vehicles in preparation for the peak season in Aug

[Europe] Hamburg Port Grows 1.1% in Container Throughput in 1Q '24
- Container throughput rose 1.1% YoY to 1.9M TEUs in 1Q. China volume maintained its lead with 53.6M TEUs, up 2.9% year-on-year.
- In addition, U.S. volume recorded 1.79 million TEUs, up 17.7% year-on-year, and Mexican volume handled 2.7 million TEUs, up 32.2%

Rate gap between Vietnam, India, China and Hong Kong is narrowing or reversing positions compared to 2023.
CN-US rate at $6.06/kg in the last week of May 2024 (up 4% WoW), reversing a 2-week HK-US rate.
Hong Kong, Vietnam and Korea outbound freight rates expected to increase as CN-US rate hikes affect near airports.

HK-US: 2024 Q3 $4.52-4.67, Q4 $3.99-4.37, 2025 Q1 $4.74-4.83, Q2 $4.41-4.69
HK-EU: 2024 Q3 $3.84-3.93, Q4 $3.80-3.85, 2025 Q1 $3.50-3.67, Q2 $3.43-3.59

Demand increases about 11.8% compared to April 2023 and 6.3% compared to April 2019. Supply increases about 10.3% compared to April 2023 and 9.2% compared to April 2019.
April 2024 cargo load factor(CLF) was recorded at 50.1%, a slight decrease of 4% compared to March 2024.

[Asia] Kuwait approves Air Freight City project
- The Kuwaiti Legislative Committee has approved the Ministry of Finance to conduct a bid for an airfreight city that procures, designs, develops, maintains, and operates cargo handling, storage, and distribution services at airports in cooperation with the Ministry of Finance.
- It is expected that specialized multinational developers will be attracted to this project, and it is known that Kuwait has already signed a contract with a Chinese company to develop and operate an air cargo city of 3 million m²

[Europe] Liverpool FC Opens Distribution Center in Roermond
- In cooperation with UPS, the club's official global logistics partner, the new distribution center in Roermond uses 100% renewable energy from 10,001 solar panels
- It mainly handles all official LFC products including home shirts for the 2024-2025 season and handles retail orders faster and more efficiently

[Americas] SEC to form joint venture with Lennox
- Samsung Electronics signed a contract with Lennox, an American heating, ventilation and air conditioning (HVAC) company to establish Samsung Lennox HVAC North America as a joint venture
- Samsung expects to strengthen its position in the North American HVAC market by utilizing Lennox's distribution channels, while Lennox is expected to expand its business into innovative ductless systems from Samsung.