The Ministry of Commerce encourages the establishment of overseas warehouses in Central Asia, while India plans to challenge the EU’s carbon tariff | Cross-border Hotspot Express

Encouragement for overseas warehouses in Central Asia and India's plan to challenge EU's carbon tariff

Hello everyone, here is the weekly industry news from 【SHOPLINE Logistics】. Let’s take a look at the industry hotspots worth paying attention to recently~

NO. 1、Global container production decreased by 71%

According to data provided by Drewry, a maritime research and consultancy company, to the Financial Times of the UK, from the first quarter of last year to the first quarter of this year, the production of 20-foot containers (the standard size for the industry) decreased by 71% year-on-year, from 1.06 million to 306,000. With the sharp decline in demand for goods after the relaxation of epidemic restrictions, global container production has plummeted.

NO. 2、India plans to challenge the EU carbon tariffs at the WTO

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In response to the EU’s carbon border adjustment mechanism (CBAM), which will enter into a transitional period on October 1 this year, India has recently launched a strong counterattack. According to foreign media reports, the Indian government and industry insiders revealed that India plans to file a complaint with the World Trade Organization (WTO) regarding the EU’s carbon tariffs.

Previously, the EU repeatedly stated that it has carefully designed the CBAM to comply with WTO rules, to promote emissions reduction in relevant industries within the EU, and to adopt the same carbon price for imported goods as for domestic producers. However, developing countries such as India and China do not see it this way. “Under the guise of environmental protection, the EU is introducing trade barriers, which will not only affect India’s exports, but also the exports of many other developing countries.” said a senior Indian government official who is directly involved in this matter.

NO.3, The Ministry of Commerce encourages enterprises to build overseas warehouses in Central Asia

On May 25, the spokesperson for the Ministry of Commerce, Gao Feng, stated at a regular press conference that in promoting economic and trade cooperation with Central Asian countries, the Ministry of Commerce will focus on the following work:

First, promote the development of new forms of trade. Continue to make good use of the China-Central Asia Economic and Trade Ministerial Conference and other multilateral cooperation mechanisms to promote practical cooperation between China and Central Asian countries in terms of both quantity and quality. Encourage enterprises to build overseas warehouses in Central Asia, support Central Asian companies in settling on Chinese e-commerce platforms, and promote the entry of high-quality Central Asian goods into the Chinese market.

Second, achieve sustainable innovation-driven empowerment. The Ministry of Commerce will carry out digital trade with Central Asian countries, promote the docking of rules, mutual recognition of standards, and interconnection of digital infrastructure, share development experience in artificial intelligence, big data, 5G, and other fields, accelerate the process of digitalization, and jointly open up a new situation of digital trade cooperation.

Third, guarantee the safety and stability of regional industrial chains and supply chains. The Ministry of Commerce will promote the construction of cross-border infrastructure, strengthen cooperation in the fields of oil, natural gas, new energy and mining, and promote the construction of cross-border pipelines; deepen cooperation in the field of agriculture, and expand imports of high-quality agricultural products from Central Asia.

Fourth, strengthen cooperation under multilateral frameworks. China will firmly practice true multilateralism and is willing to strengthen cooperation within the framework of the World Trade Organization with Kazakhstan, Kyrgyzstan, and Tajikistan, and support Turkmenistan and Uzbekistan in joining the World Trade Organization as soon as possible.

NO. 4, Multiple countries have recently released freight-related data

According to data from the Dutch Bureau of Economic Policy Analysis, global freight volume declined by 1.1% year-on-year in the first three months of 2023. After declines of 2.5% and 1.2% in February and January respectively, freight volume in March increased by 0.2% year-on-year, indicating preliminary signs of a possible bottoming out of the cycle.

In April, container throughput at Singapore’s ports reached a record high of 3.26 million TEUs, an increase of 7% year-on-year. At London’s Heathrow Airport, cargo volume in the first three months of this year (February-April) decreased by 7% year-on-year, a much smaller decrease than the 14% drop in the same period last year (October-December). At Narita Airport in Japan, air cargo volume in the first three months from January to March was down 22% year-on-year, but the decline was smaller than the 26% drop from November last year to January this year.

In the United States, there are fewer signs of a manufacturing and freight cycle approaching a trough. In the first three months of 2023, U.S. railways transported 3.1 million TEUs, compared with 3.4 million TEUs in the same period last year. According to reports from U.S. trucking companies, market activity in the first three months of 2023 was down by less than 1%, but weakened significantly at the end of the quarter, with a 5% decline in March. In the top nine container ports in the United States, the number of containers processed in April was down 16% year-on-year, and down 17% in the first four months of 2023. (China Post Express News)

NO. 5 Global AliExpress launches free returns service on the Spain station

AliExpress recently announced that its free returns service “free returns” will be rolled out across the AliExpress Spain station on May 29th (US Pacific Time). Spanish users will be able to enjoy the “free returns” service on the entire site, allowing them to return items free of charge to local warehouses without any reason.

The “free returns” service for consumers includes the right for Spanish consumers to return items for free within 15 days without giving any reason; when consumers initiate a return (whether it is for no reason or for a reason), the package will be returned for free to the local warehouse in their own country through the platform service provider; when the local warehouse in Spain receives the returned items, consumers can receive a refund.

NO.6, Korean Air opens Zhengzhou-Seoul international cargo route

Recently, Korean Air has opened a new international cargo route from Zhengzhou, China to Seoul, South Korea.

It is reported that the cargo route will be operated by Boeing 777 freighters, with one flight on Thursdays and one flight on Saturdays each week. The outbound flight will depart from Incheon Airport in Seoul and stop in Xi’an before arriving at Zhengzhou Xinzheng International Airport; the return flight will fly directly from Zhengzhou Xinzheng International Airport to Incheon Airport in Seoul. (China Civil Aviation Network)

NO.7, Hapag-Lloyd increases box rates from Middle East and the Indian subcontinent to North America

Recently, Hapag-Lloyd announced a new General Rate Increase (GRI) for containers shipped from the Middle East and the Indian subcontinent to North America. This German shipping company will increase the rate by $500 per container from July 1st. The new GRI will apply to dry, reefer, and special containers with 20′ and 40′ dimensions, including high-cube equipment.

This rate adjustment will apply to flights from India, Bangladesh, Sri Lanka, Pakistan, the United Arab Emirates, Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, Jordan, and Iraq to the United States and Canada.

NO.8 , Global beauty product sales are expected to reach $583 billion by 2027

The report shows that in the coming years, the sales of global beauty products will increase at a rate of 6% per year. The global beauty product sales are expected to increase from $427 billion in 2022 to about $583 billion in 2027. North America and China will remain the driving force of the global beauty industry with sales of $115 billion and $96 billion respectively in the next four years. By 2027, online sales of global beauty products will account for 26% of total retail sales and will show stable growth in proportion. The report also pointed out that the online sales of beauty products in the United States are expected to reach $45 billion by 2027. (Yi En)

NO. 9, Spain’s e-commerce user penetration rate is close to 30%

A report released by Ae coc Shopperview and Nétrica shows that the size of Spain’s online shopping user base has stabilized. Rosario Pedrosa, business strategy and marketing manager at Aecoc Shopperview, pointed out that “during the epidemic, Spain’s e-commerce market experienced explosive growth, and the user penetration rate of e-commerce reached nearly 30%. Now, the number of e-commerce users in Spain is almost twice that before the epidemic.” The study also pointed out that Spain’s e-commerce platforms’ sales in the second half of 2022 increased by 21%, compared with a 17% increase in the first half of the year. In addition, the report shows that due to high inflation, fast-moving consumer goods continue to attract the attention of Spanish online consumers. In the second half of last year, the sales of fast-moving consumer goods accounted for 65% of online sales in supermarkets and hypermarkets, and 11% of online sales on e-commerce platforms.

NO. 10, Shein plans to open 30 more pop-up stores to accelerate its offline retail layout

Recently, it was reported that after opening its Europe, Middle East, and Africa (EMEA) headquarters in Dublin, Shein will open about 30 pop-up stores this year to continue its brick-and-mortar retail strategy.

Shein stated that although it still prioritizes online sales and has no plans to open permanent stores, pop-up stores are an essential part of its business model. This is because they not only allow customers to touch and feel the products in person, but also enable direct interaction with Shein’s local brand ambassadors, bringing the brand closer to consumers. Shein also cited the example of its pop-up store in the Jervis Shopping Centre in Dublin last year, which attracted over 4,000 customers per day and achieved good results. (E-commerce report)

No. 11: The scale of China’s cross-border e-commerce import and export of goods accounts for about 5% of foreign trade

At the on-site meeting of the Cross-border E-commerce Comprehensive Experimental Zone held in Hangzhou, Zhejiang Province, it was learned that in recent years, the number of China’s cross-border e-commerce companies has exceeded 100,000, with over 200,000 independent websites built, and about 690 cross-border e-commerce industrial parks in the experimental zone. The scale of cross-border e-commerce import and export of goods accounts for about 5% of foreign trade, up from less than 1% five years ago.

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