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Ports America Announces New Leadership for 2020

Ports America

Ports America Announces New Leadership for 2020

Modern Terminals Hong Kong managing director and CEO Peter Levesque was confirmed this week as the newly appointed president for the largest North American marine terminal and stevedore, Ports America. Mr. Levesque will step into the role starting in February 2020 bringing decades of experience and a proven track record of success.

“I am thrilled to have Peter be part of our leadership team of the Ports America platform. Ports America remains focused on providing best-in-class service to many of the world’s leading shipping lines as well as the work we have completed in improving workflow solutions to beneficial cargo owners to drive dramatic growth for the company,” said Ports America CEO Mark Montgomery.

Mr. Levesque brings more than 30 years of experience in maritime business, with nine years of leadership with Modern Terminals and spearheading the Public Private Partnership (PPP) for the company.

“Having Peter Levesque join Mark Montgomery, Rick Surett and Jim Pelliccio as a core part of the management team is central to the strategic growth plan for Ports America,” said Dave Starling,  company board chairman.

“Peter’s strong leadership, experience and success in building superior organizations gives the board the utmost confidence that this team will drive the continued success of the company.”

Global Beef Market 2019 – Rising Demand In China Boosts Imports Up, Securing New Opportunities For Foreign Suppliers

IndexBox has just published a new report: ‘World – Beef (Cattle Meat) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global beef market revenue amounted to $385.7B in 2018, growing by 5.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +3.2% over the period from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2008 with an increase of 11% year-to-year. Global beef consumption peaked in 2018 and is expected to retain its growth in the near future.

Production 2007-2018

In 2018, approx. 70M tonnes of beef (cattle meat) were produced worldwide; flattening at the previous year. In general, beef production continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2013 when Production Volume increased by 1.8% against the previous year. Over the period under review, global beef production reached its peak figure volume in 2018 and is likely to continue its growth in the immediate term. The general positive trend in terms of beef output was largely conditioned by a relatively flat trend pattern of the number of producing animals and a relatively flat trend pattern in yield figures.

In value terms, beef production stood at $392.3B in 2018 estimated in export prices. The total output value increased at an average annual rate of +4.3% over the period from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2008 with an increase of 19% y-o-y. Global beef production peaked in 2018 and is likely to see steady growth in the immediate term.

Exports 2007-2018

In 2018, approx. 8.1M tonnes of beef (cattle meat) were exported worldwide; approximately equating the previous year. The total export volume increased at an average annual rate of +1.6% over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 10% against the previous year. Over the period under review, global beef exports attained their peak figure at 8.2M tonnes in 2014; however, from 2015 to 2018, exports failed to regain their momentum.

In value terms, beef exports amounted to $40.7B in 2018. In general, the total exports indicated a resilient increase from 2007 to 2018: its value increased at an average annual rate of +1.6% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the beef exports increased by +6.0% against 2016 indices. The growth pace was the most rapid in 2008 with an increase of 18% against the previous year. Over the period under review, global beef exports attained their maximum at $44.1B in 2014; however, from 2015 to 2018, exports stood at a somewhat lower figure.

Exports by Country

In 2018, Brazil (1.3M tonnes), followed by Australia (857K tonnes), the U.S. (691K tonnes), New Zealand (436K tonnes), Ireland (410K tonnes), the Netherlands (383K tonnes) and Argentina (367K tonnes) were the major exporters of beef (cattle meat), together mixing up 55% of total exports. Canada (345K tonnes), India (337K tonnes), Poland (325K tonnes), Uruguay (283K tonnes) and Germany (266K tonnes) took a relatively small share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Poland, while the other global leaders experienced more modest paces of growth.

In value terms, the largest beef markets worldwide were Brazil ($5.3B), the U.S. ($4.8B) and Australia ($4.7B), together comprising 36% of global exports. Ireland, the Netherlands, New Zealand, Argentina, Canada, Uruguay, Poland, Germany and India lagged somewhat behind, together comprising a further 40%.

In terms of the main exporting countries, Poland experienced the highest rates of growth with regard to exports, over the last eleven year period, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average beef export price amounted to $5,052 per tonne, leveling off at the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +2.3%. The pace of growth was the most pronounced in 2008 when the average export price increased by 20% year-to-year. Over the period under review, the average export prices for beef (cattle meat) attained their maximum at $5,370 per tonne in 2014; however, from 2015 to 2018, export prices remained at a lower figure.

There were significant differences in the average Export Price prices amongst the major exporting countries. In 2018, the country with the highest Export Price price was the U.S. ($6,894 per tonne), while India ($3,448 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of Export Price prices was attained by India, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, the global imports of beef (cattle meat) stood at 9.5M tonnes, increasing by 4.3% against the previous year. The total import volume increased at an average annual rate of +2.3% over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2013 with an increase of 7.4% year-to-year. Global imports peaked in 2018 and are expected to retain its growth in the near future.

In value terms, beef imports totaled $47.3B in 2018. Overall, the total imports indicated a remarkable increase from 2007 to 2018: its value increased at an average annual rate of +2.3% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the beef imports increased by +15.4% against 2016 indices. The most prominent rate of growth was recorded in 2011 when Imports increased by 16% year-to-year. Over the period under review, global beef imports reached their maximum in 2018 and are expected to retain its growth in the immediate term.

Imports by Country

In 2018, China (1M tonnes), the U.S. (912K tonnes), Viet Nam (619K tonnes), Japan (610K tonnes), South Korea (442K tonnes), China, Hong Kong SAR (439K tonnes), Italy (386K tonnes), Germany (367K tonnes), Russia (359K tonnes), the Netherlands (356K tonnes), the UK (294K tonnes) and France (247K tonnes) represented the largest importers of beef (cattle meat) in the world, mixing up 64% of total import.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by China, while the other global leaders experienced more modest paces of growth.

In value terms, the largest beef importing markets worldwide were the U.S. ($5B), China ($4.7B) and Japan ($3.5B), together accounting for 28% of global imports.

China recorded the highest growth rate of imports, in terms of the main importing countries over the last eleven years, while the other global leaders experienced more modest paces of growth.

Import Prices by Country

In 2018, the average beef import price amounted to $4,996 per tonne, increasing by 2.2% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +2.3%. The pace of growth appeared the most rapid in 2008 an increase of 18% year-to-year. Global import price peaked at $5,104 per tonne in 2014; however, from 2015 to 2018, import prices failed to regain their momentum.

There were significant differences in the average Import Price prices amongst the major importing countries. In 2018, the country with the highest Import Price price was South Korea ($6,415 per tonne), while Viet Nam ($3,258 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of Import Price prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

HKSPA

World’s Largest Container Vessels Arrive at HKSPA Terminal

Hong Kong Seaport Alliance announced the successful arrival of the OOCL Hong Kong and ten additional OOCL and Cosco Shipping Lines Ltd. mega vessels at the HKSPA Terminal 8 facility this week, just six months following the alliance’s formation. OOCL Hong Kong- known as one of the largest container vessels in the world, deployed along with the other mega vessels at the end of June for the OCEAN Alliance’s Asia-North Europe Service, which included Hong Kong as a port of call.

Hong Kong, despite being small in size, has been in the league of the world’s top ten ports for the past 30 years or so. This is an enviable achievement not easy to accomplish. Credits must go to our port operators for the provision of highly efficient and professional services to the international shipping community,” said Angela Lee, Commissioner for Maritime and Port Development and Deputy Secretary for Transport and Housing (Transport).

“Coupled with our sound fundamentals built over the years, including our free port status, strong international connectivity, trusted common law system, and a level playing field for business, I am confident that our port would be able to further leverage on new opportunities presented by the Greater Bay Area Development, the Belt and Road Initiative and the New Land-Sea Corridor, and continue to thrive as a regional transshipment hub,” Lee added.

The massive OOCL Hong Kong container vessel boasts 21,413 TEU capacity and holds the title as the first in the world to exceed the 21,000 TEU capacity threshold. There are currently only 12 container vessels that can boast capacity of this size, and eight of them are among the mega vessels deployed during the OCEAN Alliance’s Asia-North Europe Service, including Cosco Shipping’s GALAXY. 

“As a Hong Kong company deeply rooted in the city, OOCL HONG KONG’s maiden call has a very special place in many of our hearts, said Andy Tung, Co-Chief Executive Officer of OOCL. “Containerships like the OOCL HONG KONG are important ambassadors of world trade and as a home carrier, we are very proud to have this vessel carry the name of Hong Kong, flying the flag of Hong Kong, and continue serving the industries of Hong Kong. OOCL is very blessed to call Hong Kong our home and being an integral part of the city’s vibrant business community over the last 50 years, providing a vital link to global trade. We like to thank the HKSPA for the wonderful hospitality and celebrating this milestone event together with us.” 

“We are proud of being ranked as the World’s Best Transshipment Port by COSCO SHIPPING this year,” said Hanliang Zhu, Managing Director of the Asia Container Terminals Limited (ACT) during the welcoming reception. “We will keep on working closely with the carriers as well as the shippers and other logistics providers to maintain Hong Kong as a reliable transshipment hub in the region.”

 

 

United Cargo Earns “Best Air Cargo Carrier – North America” Award

During this year’s annual Asian Freight, Logistics and Supply Chain (AFLAS) Awards in Hong Kong, United Cargo was recognized as the “Best Air Cargo Carrier” for the North American region.

Hosted annually by Asia Cargo News, selected nominees and winners are determined through a different approach with the help of more than 15,000 reader and e-subscriber votes. Consistency in service, innovation, customer relations, and management are all taken into consideration when vetting winners for the annual awards.

“United Cargo’s primary goal is to build and sustain long-term relationships of mutual benefit with our customer partners,” said United Cargo President Jan Krems. “Our team is especially proud to again receive this award representing the voice of our customers, because it confirms we are delivering a consistently excellent level of service worldwide and enhancing our partners’ success. I salute United Cargo team members in more than 300 locations around the globe for their commitment to quality.”

This news follows an announcement made earlier this month confirming the carrier will begin transporting and leasing Swiss-based temperature-controlled containers provided by SkyCell. United Cargo will be the first U.S. carrier of SkyCell’s containers, enabling safe and effective logistics for biopharmaceuticals and temperature-sensitive items.

“TempControl’s transport of vaccines and other high-value biopharmaceutical shipments is increasing rapidly,” said Jan Krems, President of United Cargo. “Extremely precise, long-duration temperature control is required for the safe transport of these highly-sensitive shipments. 

“SkyCell is excited to partner with United to increase the availability of SkyCell containers for the U.S. pharma industry,” said Richard Ettl, CEO of SkyCell. “United and SkyCell share the goal of eliminating temperature excursions and reducing the CO2 footprint in global pharma transportation.” 

Source: United Cargo

Report Shows Counterfeit Trade Increase in 2019

A report released by OECD and the EU’s Intellectual Property Office confirmed that counterfeit and pirated goods in trade reached 3.3 percent this year. With the majority of the counterfeit goods being picked up in China and Hong Kong, the spotlight is focused on concerns surrounding consumer health and safety with fake goods such as medical supplies, car parts, toys, food and cosmetics brands and electrical goods.

Excluding domestic produced and consumed fake goods, the customs data seizure reports state the overall value of global fake goods at $509 billion, with the European Union representing 6.8 percent of counterfeit trade from non EU countries. Items such as footwear, clothing, leather goods, electrical equipment, watches, medical equipment, perfumes, toys, jewelry and pharmaceuticals were the top goods that made the list.

“Counterfeit trade takes away revenues from firms and governments and feeds other criminal activities. It can also jeopardize consumers’ health and safety,” said OECD Public Governance Director Marcos Bonturi, launching the report with the Director of the EU Observatory on IPR infringements at the EUIPO, Paul Maier, and the EU Ambassador to the OECD Rupert Schlegelmilch. “Counterfeiters thrive where there is poor governance. It is vital that we do more to protect intellectual property and address corruption.”

Other countries impacted the most in 2016 include the United States, France, Italy, Switzerland, and Germany.

To read the full report, please visit: OECD.org

The Trade War Continues and Businesses are Responding

The trade war raging between the U.S. and China, which seemed headed toward a resolution before President Donald Trump in May accused the Chinese of reneging on commitments they made, is obviously the talk of the global trade-o-sphere.

Trump on May 9 announced tariffs on $200 billion worth of Chinese imports would go from 10 percent to 25 percent. China fired back by announcing it would hit $60 billion worth of U.S. imports with tariffs ranging from 5 percent to 25 percent on June 1. So, the Trump administration countered by saying it would impose 25 percent tariffs on all remaining Chinese imports—or about $300 billion worth of goods—“shortly.”

The president beat back the backlash by saying U.S. tariffs would be paid “largely” by the Chinese, but even members of his own political party argue that the tariffs have been and will be paid almost entirely by American businesses and consumers. “There will be some sacrifice on the part of Americans, I grant you that,” said U.S. Sen. Tom Cotton (R-Arkansas) to CBS News.

Obviously, not everyone (including Trump supporters) agree with the president’s March 2018 proclamation, “Trade wars are good, and easy to win.”

-Vijay Eswaran, entrepreneur, speaker, philanthropist and founder and executive chairman of the Hong Kong-based multi-business conglomerate QI Group of Companies: “Trade wars are never good, and certainly not easy to win. The main victims of this tariff war are the American consumers. Tesla had to raise the price of two of its cars by $20,000 last year after a new round of Chinese tariffs. Walmart and Target have already warned the government about an increase in prices on many everyday essentials. It’s just going to get worse.”

-Nelson Dong, senior partner at the international law firm Dorsey & Whitne, where he is co-head of their Asia group, as well as a current member of the boards of directors of the National Committee on U.S.-China Relations and the Washington State China Relations Council: “As has already been evident since mid-2018, the Administration’s Section 301 tariffs and China’s retaliatory tariffs will now further disrupt—or even break—many thousands of supply chains in both countries as local consumers either turn away from buying affected imports or are just forced to pay the resulting higher prices. Inevitably, suppliers in third countries will also be eyeing this U.S.-China trade war and looking to take advantage of the situation to replace either Chinese or American sources of supply as many importers look for ways to avoid these punitive tariffs.”

-Americans for Prosperity President Tim Phillips: “This White House has accomplished many significant economic and regulatory reforms that have reduced unemployment, lowered taxes and removed barriers to opportunity for millions of Americans. Our economy is thriving despite these tariffs, not because of them. We strongly encourage the administration to listen to America’s job creators who need trade barriers reduced, not expanded.”

-Scott Wine, chairman & CEO OF Polaris Industries: “Ultimately, if this was not resolved, we would have no choice but to move production to Mexico. … This would essentially be forcing me to push jobs outside the U.S.”

-Tiffany Zarfas Williams, owner of the Luggage Shop of Lubbock in Texas: “I definitely want China to be held accountable, but I don’t know why we are punishing consumers in our own country. That’s the part that’s hard to understand as a small business owner in Texas.”

-Rick Helfenbein, president & CEO of American Apparel & Footwear Association, to CNN: “This confirms our worst fears. There are those of us who are optimists and thought it would go away and those who say it could come back at any time—and this points to the latter;” and to Fox Business: “Two-thirds of the GDP is consumer based. Ten percent of the jobs in America are retail, and in the first four months of this year, more stores have announced closings than all of last year.”

-John Bozzella, president of Global Automakers, which represents international car companies: “Our concern is, as we go back into a phase of tit-for-tat tariffs, that the auto industry would face some significant pain.”

-Cal Dooley, president of the American Chemistry Council: “The risks of continuing to use tariffs as a negotiating tactic with China are simply too high—and any potential benefits still unclear.”

-David French, senior vice president of government relations for the National Retail Federation: “American consumers will face higher prices, and U.S. jobs will be lost.”

-Lisa Hu, founder of the handbag company Lux & Nyx: “You start a business thinking you know how much things are going to cost, and then something like this comes along and changes everything. … Are these tariffs going to happen? Are they not? I’m having to make long-term decisions based on the little information I have now.”

-American International Automobile Dealers Association CEO Cody Lusk: “If President Trump follows through on his threat to place 25 percent tariffs on imported autos and auto parts, he will be directly responsible for a drastic tax increase on American consumers, which could result in a loss of 2 million vehicle sales and jeopardize up to 700,000 American jobs.”

Kerry Coffee Establishes Position in Hong Kong, Macau

Kerry Logistics will fulfill its vision of deepening its two-year partnership with illycaffè through the launch of sole distributor, Kerry Coffee Limited, which will oversee and distribute the illycaffè’s iperEspresso coffee machines, capsules, coffee beans, and more throughout Hong Kong and
Macau.

“The establishment of Kerry Coffee and the consolidation of illycaffè’s full product range under the new company will enhance the cost-efficiency of the sales and distribution operation, and enable illycaffè to increase its market share and brand recognition in Hong Kong and Macau,” commented
Robert Berger, Executive Director – Fashion & Lifestyle of Kerry Logistics (Hong Kong) in response to the news.

Kerry Coffee will create a full consolidation of illycaffè’s products under a single operator, further establishing its position in the coffee market and competitor in the region, ultimately meeting increased demand in the growing coffee culture.

Additionally, Kerry Logistics confirmed it will continue its original role of providing logistics support along with sales and marketing for the global coffee company. Marketing initiatives include brand recognition and increasing market shares.

“The development also enriches Kerry Logistics’ food services business and allows greater product diversification to serve HORECA and club customers in Hong Kong and Macau,” Berger added in the release.

Source: Kerry Logistics


Cathay Pacific Services Limited Recognized for IATA CEIV Fresh Certification

Cathay Pacific Services Limited (CPSL), subsidiary of Cathay Pacific, announced it’s one of the first companies to receive the IATA CEIV Fresh Certification, next to Hong Kong Airport Authority. The companies were recognized at the IATA World Cargo Symposium earlier this week.

The certification focuses primarily on the treatment and transportation of perishables while measuring the speed and efficiencies of stakeholders in the Hong Kong International Airport.

The Cathay Pacific Cargo Terminal utilizes innovative logistics solutions while streamlining workflows and credits these elements for quick turnaround on the group’s Fresh LIFT shipments.

India, Sri Lanka and South Africa all are big markets for shipment of perishable products like sea food, fresh vegetables, fruits and even fresh flowers. Hong Kong, Japan and Korea are some of the important trade lanes for FreshLIFT. And with this feat at our Cargo Terminal, we will provide superior value, agile service and expert handling to our customers for airfreight of perishables,” said Rajesh Menon, Cathay Pacific Regional Head of Cargo for South Asia, Middle East and Africa.

Hactl Hosts 12th Annual International Forklift and Pallet Building Competition

This year’s 12th annual Hactl-hosted International Forklift and Pallet Building Competition comprised of nine teams who traveled internationally to compete at Hactl’s SuperTerminal 1 facility in Hong Kong.

All nine teams were judged based on ability and compliance with ICAO and IATA international standards relating to dangerous goods, heavy cargo and overall build integrity. The timed tasks included maneuvering a loaded forklift truck through a simulated warehouse course and delivering cargo to team members who then had to load as many items as possible.

“Mixing machinery and people in a time-constrained environment like air cargo handling always introduces risk,” said Hactl Chief Executive Wilson Kwong. “Hactl’s annual competition puts a light-hearted, friendly and competitive face on a serious message: that safety in the air cargo workplace is paramount. Honing forklift driving skills is a key aspect of this, and was clearly evidenced by the excellent performance of the competitors this year.”

The nine teams that participated were: Air Canada Cargo, Air France Cargo, IAG Cargo, Air China Cargo, Cargolux, Japan Airlines, KLM, Nippon Cargo Airlines and Qatar Airways.

Air China Cargo took first place with  Air France Cargo taking second place and Qatar Airways finishing in third.

“In line with Hactl’s long-standing policy of industry leadership and best practice, we are committed to protecting our own workers, and hope that our competition will once again help to focus industry attention on this vitally important topic,” concluded Kwong.

Source: Hactl 

Global Trade Must Go On

Seldom mentioned, but nonetheless addressed, it is clear that the Hong Kong trade market along with markets around the world are not letting the current trade war between China and the U.S. hinder  the opportunities for trade growth and success.  Day 2 of the annual Asian Logistics and Maritime Conference hit the ground running, proving that nothing stands in the way for the continuation of global trade success, with or without the imposed tariffs. It goes without saying the trade war is a concern, but is nowhere close to stopping leading initiatives. 

“This is the thing that keep us awake at night,” Alexander Tarini, Vice President of Logistics for Olymel said in response to the current trade war. The potential impact the imposed tariffs could place on business efforts and trade success continues to saturate news channels and conversations at the mention of the global economy. Leaders encouraged others to focus on riding the waves of change, keep the customer first and utilize the uncertainty as a way to implement flexibility into operations.

“Hong Kong continues to be a key trading and logistics hub linking the mainland, Association of Southeast Asian Nations (ASEAN)
members and global markets through its excellent regional and global sea and air links,” according to a release highlighting the conference themes from HKTDC.

While some industry leaders expressed almost no concern over the current trade war, many provided step-by-step strategies to maintain control over the numbers, supply chain, customer relations as a means to gain peace of mind and ensure business keeps moving.

President of President, Asia Pacific Division, FedEx Express Karen Reddington urged the importance of connectivity as a key to growth success and added that, “Asia is a strong, resilient trading bloc in a globalized world, and connectivity is the key to global growth… we must keep connecting and integrating to maintain the momentum.”

The confidence of the Hong Kong market is what keeps is moving, according to Reddington and as the conversation of its future as a logistics hub, there is no question the strong infrastructure and regulatory systems already in place will determine its success.

 

Source: HKTDC