Connect with us

Trade and Regulations

WTO goods barometer flashes red as COVID-19 disrupts world trade

Published

on

WTO goods barometer flashes red as COVID-19 disrupts world trade. Image: WTO
Listen to the story (FreightComms AudioPost)

The volume of world merchandise trade is likely to fall precipitously in the first half of 2020 as the COVID-19 pandemic disrupts the global economy, according to the WTO Goods Trade Barometer released on 20 May. The index currently stands at 87.6, far below the baseline value of 100, suggesting a sharp contraction in world trade extending into the second quarter. This is the lowest value on record since the indicator was launched in July 2016.

The Goods Trade Barometer provides real-time information on the trajectory of world merchandise trade relative to recent trends. The current reading captures the initial phases of the COVID-19 outbreak, and shows no sign of the trade decline bottoming out yet. This measure is consistent with the WTO’s trade forecast issued on 8 April 2020, which estimated that world merchandise trade could decline by between 13% and 32% in 2020, depending on the duration of the pandemic and the effectiveness of policy responses.

All of the barometer’s component indices are currently well below trend. The automotive products index (79.7) was weakest of all, due to collapsing car production and sales in major economies.

The sharp decline in the forward-looking export orders index (83.3) suggests that trade weakness will persist in the short-run. Declines in the container shipping (88.5) and air freight (88.0) indices reflect weak demand for traded goods as well as supply-side constraints arising from efforts to suppress COVID-19. Only the indices for electronic components (94.0) and agricultural raw materials (95.7) show signs of stability, although they too remain below trend.

Trade had already been slowing in 2019 before the pandemic, weighed down by persistent trade tensions and weakening economic growth. WTO trade statistics show that the volume of world merchandise trade shrank by 0.1% in 2019, marking the first annual decline since 2009, during the global financial crisis. Trade was relatively weak in the final quarter of 2019, but this is unlikely to have been influenced by COVID-19, which was first detected very late in the year.

Like its counterpart for services, the Goods Trade Barometer aims to gauge momentum and identify turning points in global trade growth. As such, it complements trade statistics and forecasts from the WTO and other organizations. Readings of 100 indicate growth in line with medium-term trends; readings greater than 100 suggest above-trend growth, while those below 100 indicate below-trend growth.

The full Goods Trade Barometer is available here.

 

WTO goods barometer flashes red as COVID-19 disrupts world trade. Image: WTO

WTO goods barometer flashes red as COVID-19 disrupts world trade. Image: WTO

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maritime

Tow-away regulations in Rotterdam for incorrectly moored barges

Published

on

Tow-away regulations in Rotterdam for incorrectly moored barges. Image: Port of Rotterdam
Tow-away regulations in Rotterdam for incorrectly moored barges. Image: Port of Rotterdam
Listen to the story (FreightComms AudioPost)

 

In Rotterdam, new tow-away regulations have been implemented for improperly moored and anchored barges. The Port of Rotterdam Authority has amended its General Terms and Conditions to address this issue. There are substantial penalties for those who violate these regulations.

In Rotterdam, new tow-away regulations have been implemented for improperly moored and anchored barges. The Port of Rotterdam Authority has amended its General Terms and Conditions to address this issue. There are substantial penalties for those who violate these regulations.

For years, various parties have faced difficulties due to barges being incorrectly moored and anchored. The nominal fine (approximately 150 euros) for an official report is significantly lower than the expenses incurred in shifting the barge.

These incorrectly moored and anchored barges frequently obstruct the path of sea-going vessels preventing them from reaching their designated berths. This results in avoidable waiting costs for both the sea-going vessels and nautical service providers. Moreover, it poses an additional safety hazard for vessels dependent on the tides, unable to depart due to the obstructing barges. The ensuing waiting times and congestion also cause delays in scheduling, impacting many other sea-going vessels as well.

Now, with the updated General Terms and Conditions, the Port of Rotterdam Authority possesses the authority to remove a vessel at any time. The barge operator is responsible for covering all costs and damages incurred or suffered by the Port of Rotterdam Authority related to the removal, along with a 15% surcharge based on the expenses, with a minimum of €5,000.

There are a total of 316 barge berths in the port of Rotterdam.

Continue Reading

Environment

EU member states agree to the “FuelEU Maritime” regulation

Published

on

EU member states agree to the "FuelEU Maritime" regulation. Image: Port of Hamburg
EU member states agree to the "FuelEU Maritime" regulation. Image: Port of Hamburg
Listen to the story (FreightComms AudioPost)

 

EU Member States cleared the way to bring sustainable renewable fuels into maritime transport. They approved the “FuelEU Maritime” regulation. The EU Parliament had also voted in favour of the agreement reached in the trilogue procedure.

The new requirements will apply to ships with a gross tonnage of more than 5,000 entering, leaving or staying in ports in the territory of an EU Member State. In addition, shore-side electricity will be mandatory for container and passenger ships from 2030. The use of synthetic fuels from renewable energies will be specifically promoted for shipping.

Federal Minister of Transport Dr Volker Wissing:
After we were recently able to achieve a breakthrough for maritime climate protection at UN level, we are now pushing the actual transformation towards climate-neutral shipping at European level with the “FuelEU Maritime” initiative. The draft regulation is open to technology and takes into account the special competitive conditions in the maritime transport sector. The main objective is to increase the demand for renewable and low-carbon fuels and their consistent use, thereby decisively reducing greenhouse gas emissions in maritime transport. The initiative is thus expected to play a fundamental role in the implementation of the European Climate Change Act for shipping.

Federal Environment Minister Steffi Lemke:
Today the EU has set a decisive course for more climate protection and the use of renewable fuels in maritime transport. Shipping companies will continue to rely on fuels in the future, because electric drives are not yet an option for long-distance transport. In maritime transport, e-fuels from renewable energies are therefore a sensible climate-friendly alternative. With the new requirements, the EU is giving manufacturers and shipping companies the necessary planning security, driving forward the development of modern technologies and making renewable fuels for maritime transport ready for the market. But there are also shadows: The fact that fuels from fossil sources and nuclear energy are also permitted as a compliance option is regrettable. The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) will continue to advocate the use of predominantly synthetic fuels from renewable energy sources in order to make maritime transport climate neutral.

FuelEU Maritime lays down uniform EU-wide rules for limiting the greenhouse gas intensity of the energy used on board a ship, and thus above all the fuels. The regulation from the Fit for 55 package stipulates that shipping in the EU must reduce its emissions by 2 percent from 2025, 6 percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045 and 80 percent from 2050. The GHG intensity reduction targets are set against the 2020 average GHG intensity of energy consumed on board ships. The greenhouse gas emissions of all fuels are assessed on the basis of a life cycle assessment (so-called well-to-wake (WtW) approach that includes the greenhouse gases carbon dioxide, methane and nitrous oxide). All fuels are permitted as a compliance option; the legislative initiative is thus technology-neutral.

The use of synthetic fuels is encouraged by a special mechanism: if the share of synthetic fuels from renewable energy sources (so-called “renewable fuels of non-biological origin, RFNBO) in the fuel mix does not exceed one percent in 2031, a mandatory minimum quota of two percent for these RFNBO fuels will automatically come into force from 2034. Beyond the use of alternative fuels, the FuelEU Maritime Regulation obliges container and passenger ships in ports in the territory of a Member State to use shore-side electricity or alternatively zero-emission technologies for on-board energy supply.

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2025, with the exception of certain Articles which shall apply from 31 August 2024.

Continue Reading

Air Freight

Dronamics is first cargo drone airline with IATA and ICAO designator codes

Published

on

Dronamics is first cargo drone airline with IATA and ICAO designator codes. Image: Dronamics
Dronamics is first cargo drone airline with IATA and ICAO designator codes. Image: Dronamics
Listen to the story (FreightComms AudioPost)

 

Dronamics, the world’s first cargo drone airline with a license to operate in Europe, announced it has been officially assigned both IATA and ICAO designator codes. Dronamics is the first cargo drone airline to secure these codes, granting it recognition on par with other international airlines.

Dronamics has been assigned the IATA designator code “OY,” along with the accounting prefix “651.” IATA codes play a critical role in the aviation industry, serving as essential identifiers for airlines, their destinations, and cargo documents. These codes enable Dronamics to be officially recognized as an airline entity, supporting commercial interline agreements with other IATA carriers, facilitating connections with freight forwarders, and enabling the publication of flight schedules through OAG, the world’s leading provider of digital flight information.

The IATA 2-letter Airline Designator code “OY” will be used to establish flight numbers for both scheduled and non-scheduled flights, providing standardized identification across its operations. Additionally, the Airline Accounting Prefix “651” grants Dronamics the ability to issue Air Waybills (AWBs), facilitating seamless cargo uplift within its extensive network.

In addition to the IATA codes, Dronamics has also secured the ICAO designator codes, further solidifying its presence in the global aviation community. The ICAO telephony call sign “Black Swan” and the 3-letter airline designator “DXE” have been assigned to Dronamics. These ICAO codes are widely utilized by pilots and air traffic controllers worldwide, playing a crucial role in flight planning, communication with air traffic control, and the dissemination of vital information through NOTAMs (Notice to Air Missions).

“Becoming the first cargo drone airline with both IATA and ICAO designator codes is a testament to Dronamics’ pioneering spirit and our vision for faster, cheaper and green air cargo for everyone, everywhere. This recognition by the leading aviation community reinforces our position on the international aviation map.” said Svilen Rangelov, co-Founder and CEO of Dronamics.

By securing the IATA and ICAO designator codes, Dronamics has solidified its position as the world’s first cargo drone airline. This reinforces Dronamics’ commitment to innovating air cargo with its drone technology and opens up new avenues for collaboration, growth, and integration within the global aviation ecosystem.

Continue Reading

Popular

Copyright © 2017-18 | FreightComms | Made with ♥ in Singapore