NIGERIA STARTS FIRST DOMESTIC CONTAINER SHIPPING LINE
Clarion Shipping West Africa is starting what it calls “Nigeria’s first fully indigenous container liner,” as it looks to build regional trade and improve service versus the transshipment options of the major carriers. The company celebrated the launch of the service at Tin Can Island Port in Lagos on July 3. The initial service plan calls for a focus on moving containers between Nigeria’s ports, with the company encouraging the government to enforce cabotage rules. It expects to have an advantage by promoting its ownership and support of the local economy. Service, Clarion Shipping, says will range from Nigeria to Benin, Togo, Ghana, Cameroon, Sierra Leone, and Ivory Coast. However, it reports interest for service to South Africa and Egypt as it seeks expressions of interest from customers. Clarion reports it has had a strong response since announcing the new service. The vessel was acquired in April, and during the dedication this week, it disclosed plans to expand its fleet. The company said it would soon be bringing a vessel with 1,789 TEU capacity to Nigeria that would focus on the export service to Liberia, Togo, Ghana, Ivory Coast, and Nigeria
FEDEX TO IMPLEMENT SINGLE PRICING STRUCTURE FOR EXPRESS, STANDARD PICKUPS
FedEx Corp. next month will implement a streamlined pricing structure for parcel pickups in the U.S. and Canada aimed at simplifying the customer experience. The move is made possible by the company’s ongoing campaign to collapse separate Express and Ground delivery networks into a single operation. The new rating structure, which takes effect Aug. 18, will charge one fee for both expedited or standard shipping, even if FedEx (NYSE: FDX) performs two pickups in the same day. For regularly scheduled and automated pickups, customers will be charged weekly based on the number of pickup days. On-demand pickups will be charged per-stop, FedEx explained on its website. The new pricing structure benefits customers by providing consistent and straightforward rates instead of customers having to track costs by the service offering being used, according to the carrier. It also provides more control in scheduling pickups because businesses can select the number of regular pickup days that fit their needs. Rather than charging ad hoc pickup fees per-package, FedEx will charge per-stop, which likely will save shippers money. And on-call shipments can be consolidated into regular pickups, further streamlining pickup activity.
TRANSHIPMENT KEY TO US-VIETNAM TRADE DEAL
Vietnam has, reportedly, agreed a trade deal with the US. President Donald Trump announced the deal on Truth Social, 20% tariffs on imports from Vietnam to the US, 40% on transhipment goods and zero tariffs for US exports to Vietnam. Wait a minute though, do we know what is considered transhipment? Transhipment is easy, right? You take a box from one country on a small ship, to a major hub and then transfer that box to a mainline vessel, feeder vessel to Singapore from Indonesia and onwards to the US or Europe. Job done!If on the other hand you are talking about particular cargo
the definition gets messier. If I take an engine built in India to Vietnam and install that engine into a car, is the car built in India or Vietnam? If I then put in electronics from Taiwan, upholstery from Bangladesh, tyres from Malaysia, will we start to charge separate tariffs on each item, or a blanket tariff on the finished product? “The bottom line is that there is clear evidence that re-routing is happening and that many operations have moved to Vietnam specifically to avoid tariffs,” concluded HBR.According to the study policymakers must expect companies to adapt to import duties as best they can. Therefore, “it’s important to gather more precise data about where this is happening,” said the report.
J&T EXPRESS REPORTS 24% JUMP IN PARCEL SHIPMENTS
Rapid international expansion continues to fuel growth at Hong Kong-based e-commerce logistics provider J&T Express, which reported record second quarter volume of 7.4 billion parcels, up 23.5% from the prior year. Total parcel volume for the first half of the year increased 27% to 14 billion pieces. J&T Express achieved full-year profit for the first time in 2024 behind a 16% increase in revenue to $10.3 billion. It turned a net profit of $110 million compared to a $1.2 billion loss in 2023.The company, which operates in 13 countries, processed 81.2 million parcels on an average daily basis during the second quarter. J&T Express is a major express carrier in Southeast Asia, with a market share of 29%, according to independent research groups and the company. Customers include popular e-commerce platforms, local brands and B2B shippers. In addition to serving e-commerce platforms, J&T has also expanded into parcel delivery for general customers. The courier reported that volumes increased by two-thirds to 1.7 billion parcels in the region during the April-June period — the fastest single quarter since its listing on the Hong Kong Stock Exchange in October 2023.