Logistics & Transportation

World - Freight demand recovering

Source: Procurement Asia, 05 January 2010

The International Air Transport Association (IATA) said that freight demand may have recorded a 9.5% growth last November, but much ground still needs to be recovered. The improvement in November is exaggerated by the sharp fall in demand experienced during the second half of 2008. Freight demand remains 10% below peak levels seen in early 2008. Compared to October, freight demand grew 4.7%, largely on the strength of markets connected to Asia Pacific.

Demand continues to improve, but there is still a lot of ground to recover. The industry cannot anticipate any significant improvement in yields in the coming months. So, conserving cash, controlling costs and carefully matching capacity to demand remain at the keys to survival. Carriers in Asia experienced a 14.5% growth in freight demand, boosted by the success of stimulus packages in driving industrial output and broader economic recovery within the region.

South Korea - Winter storm affects cargo delivery

Source: Procurement Asia, 05 January 2010

The logistics industry is coming to a stand still in Seoul, as South Korea experiences their worst snowstorm in more than 70 years. The local logistics industry has been put on emergency alert to minimise damage caused by the heavy snowfall. Lotte Home Shopping reportedly informed some of its customers that it is unable to deliver the items they purchased.

Local logistics companies have also been behind on their deliveries, while a majority of flights taking off from Gimpo Airport have been cancelled, further hampering cargo distribution. According to Korea Express, a leading distribution company, the regions with the worst traffic included Seoul and metropolitan areas in general as well as Yangyang in Gangwon Province and Gwangju, Naju and Yeonggwang in South Jeolla.

Singapore - Maritime sector records 10.1% growth in shipping tonnage in 2009

Source: Channel NewsAsia, 07 January 2010

Despite the global economic slowdown, Singapore has maintained its position as a leading port. The country's maritime sector recorded a 10.1% growth in shipping tonnage in 2009. According to the latest numbers from the Maritime and Port Authority of Singapore (MPA), vessel arrivals in terms of shipping tonnage reached 1.78 billion gross tons in 2009.

Container ships were the top contributor, accounting for 31.4% of the total vessel arrival tonnage. That was followed by tankers, which contributed 29.6% to the total figure. MPA said container and cargo throughput hit 25.9 million standard containers or 20-foot equivalent units in 2009, down 13.5% from 2008. The total cargo tonnage handled by the Port of Singapore last year dipped 8.9% to 469.6 million tons.

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