With much of Southeast Asia locked down and air and sea transport restricted, cross-border road freight demand in Southeast Asia is surging, while e-commerce sales are booming.
According to DHL Global Forwarding, road logistics is fast becoming a reliable alternative to air and sea freight affected by the outbreak.
“Road freight is now playing a more important role in Asia’s international long distance transportation solutions as it provides an economically efficient and sustainable option,” said Thomas Tieber, CEO of DHL Southeast Asia.
Indeed, the company has been a strong supporter of the region’s road freight potential. In December, the company noted that trucking companies had begun to shift more to overland intermodal transportation, including long-haul trucking to Europe, rather than just intra-Asian transportation.
Ceva and DSV Panalpina are also quick to recommend Silk Road freight to supplement the rapidly growing china-Europe rail traffic, and even a local company in Malaysia has deployed trucks along the route as they grow tired of the delays and capacity shortages plaguing container shipping.
DHL believes that the economic recovery in ASEAN countries will lead to a surge in demand for road logistics services, with an annual growth rate of 8 per cent until 2025.
“The growth of e-commerce consumer spending and B2B e-commerce, which is expected to grow 70 percent by 2027, is also driving demand for door-to-door logistics solutions,” it added.
DHL also believes that the ASEAN Customs Transit System (ACTS) will enhance cross-border road freight. Launched last year, ACTS allows trucks to cross multiple ASEAN borders and offers a single guarantee of tariffs and taxes throughout. So far, 500 cars have been licensed to operate.
Kelvin Leung, CEO of DHL Asia Pacific, added: “This bodes well for ASEAN countries as they prepare to rebound strongly from the outbreak.”
However, The lockdown in Southeast Asia due to the outbreak poses additional challenges, Says Kelvin Leung. “We are following the containment measures that each country has put in place, and sometimes those containment measures can affect daily operations,” he said in an interview.
At the same time, DHL says a growing number of customers are also turning to road freight for short – and long-haul hauls to reduce carbon emissions.
Air transport from Jakarta to Bangkok via Singapore would not only cut carbon emissions in half, it said, but also save 35 per cent on costs compared with direct flights. Similarly, trucking from Singapore to China can reduce the carbon footprint by 83% compared with air freight.
According to Business Insider, ports in southeastern New England were closed by the US Coast Guard on August 22 as tropical Storm Henry brought strong winds and heavy rain to the region.
The Coast Guard said in a statement late Saturday that several ports, including Narragansett Bay and Mount Hope Bay, were under Hurricane Zulu alert, meaning they were closed to ships due to strong winds.
Previously, the port had been under “Yankee” status, meaning tropical or hurricane-force storms were expected to make landfall at the port within 24 hours.
Tropical storm Henri and the resulting port closures come amid a recent surge in shipping costs that has slowed and caused massive shortages of goods across the global supply chain, which was severely disrupted by last year’s COVID-19 pandemic and made worse by the blockade of the Suez Canal earlier this year, the report noted.
Business Insider reports that major global shipping alliances have cut traffic between Asia and Europe by 22 percent over the spring of 2020, while operators have cut capacity between Asia and North America by about 20 percent.
In 2012, after Hurricane Sandy hit the East Coast, the U.S. Coast Guard reported $70 billion in damage to more than 180 ports in the region that would take months to recover.
Wildfires in the Western United States, flooding in China and Europe and drought in South America have disrupted supply chains for everything from wood to chocolate to rice for sushi, CNBC reported.
Christy Slay, senior director of science and research applications at the Sustainability Alliance, said: “Whether you’re in the agriculture sector, the forestry sector or the technology sector, virtually no industry is immune to the effects of climate change”.
CNBC notes that about a quarter of the wood consumed in the United States comes from Canada, which is experiencing severe droughts and wildfires. Brazil is suffering its worst drought in more than a century, partly as a result of a surge in coffee futures prices in July, which almost doubled from a year earlier. While the increase has not yet been passed on to consumers, experts say price increases will come soon. Even pearl rice, used in sushi, has been hit. Two-thirds of the crop consumed in the United States is grown in California, which faces water shortages due to drought and wildfires, and rice crop production requires a lot of water.
Extreme weather events can also disrupt supply chains because workers cannot find jobs. According to a recent report by the United Nations Development Programme, workplace disruptions caused by climate change could result in more than $2 trillion in lost productivity by 2030.
Under the epidemic, the new economy represented by the digital economy quickly fills up its seats to provide protection for everyone’s needs in life. “Cloud Office”, “Cloud Fitness”, “Cloud Concert”, “Cloud Recording”, “Cloud Release”…a business format about “cloud” became standard, which even detonated the term “cloud economy”. Although some people do not understand this concept very well, they have actually participated in it.
There is currently no uniform definition of “cloud economy” in academic circles. Some scholars define “cloud economy” as the economy of cloud computing and cloud services. Joe Weinman, the author of “Cloud Economics-Enterprise Cloud Computing Strategy and Layout”, explained that “cloud economics” is not an esoteric economic theory. The mathematical model is a vivid summary of the technological revolution, the core concept of “flexible cloud computing can effectively enhance the business value of enterprises”. The “cloud economy” we are talking about today mainly defines the business trend of enterprises and society under the massive application of cloud computing.
Since the country put forward the “Internet +” action plan in 2015, “Internet +” has been widely integrated into all walks of life, and the continuous innovation and integration of online scenes and offline scenes has promoted retail, finance, culture and entertainment, medical care, government affairs and other fields The rapid development and the “Internet +” that incorporates artificial intelligence technology is a technology cluster application. From pure software intelligence in the past to hard and soft intelligence today, it has changed people’s daily life and the overall industrial structure. Promoting the consumption upgrade of the market has also played a positive role and has become one of the signs leading the innovation and development of enterprises and society. In this special period of epidemic prevention and control, people rely on online work and life. It is generally believed that this is another rapid development trend in the Internet industry after SARS, which may provide more opportunities for entrepreneurship and employment, or even form new ones. The economic outlet of China-“Cloud Economy”.
Whether it is facial recognition and body temperature measurement equipment, or online check-in and attendance systems, all walks of life are launching various “cloud”-related products. When the market is advancing by leaps and bounds, we should maintain a rational mindset and be cautious and objective about the “cloud economy”. The popularity of the “cloud economy” during this period is mainly affected by the isolation of people at home during special periods, but the most fundamental driving factor is the rapid development of my country’s Internet and logistics industries in recent years. After the epidemic is over, it is a question mark whether the “cloud economy” can continue to be prosperous after being separated from the consumption environment of everyone’s home. In a short period of time, its impact on economic development and entrepreneurship and employment is still limited.
However, it should be noted that during this epidemic, consumers at home took the initiative to apply various “cloud economy” products, which I believe has provided a lot of support for the development of the “cloud economy” industry. The epidemic brings short-term pressure, but also brings opportunities for changes in the industry structure. Take “Cloud Classroom” as an example. The “Suspension of Classes without Suspension” this time is a test of online education. Some pain points such as poor self-control of students in online education have been exposed, and it is believed that the promotion of solving these pain points will become ” The next focus of “wisdom education”. In addition, the formulation and improvement of the “cloud economy” development policy will bring benefits to the better promotion of the development of the “cloud economy” in the future.
After this epidemic, we must not only see the reasons behind the “cloud economy”, but also find new “outlets” from the aspects of economic and social development and lifestyle changes. The government, enterprises and other diversified entities should increase integration and innovation mechanisms to truly endow this new economic form with more vitality and impetus.
According to the Voice of China’s “News Evening Peak” report, the National Bureau of Statistics announced on the 18th that the gross domestic product (GDP) in 2020 will exceed the 100 trillion yuan mark for the first time, with a growth of 2.3% against the trend. Become the only major economy in the world to achieve positive growth. With the new crown pneumonia epidemic raging around the world, the world economy is in a severe recession, and the external environment is more complicated and severe, how exactly is such a beautiful report card written?
2020 is an extraordinary year in the history of New China. In the face of severe and complex domestic and foreign environments, especially the severe impact of the new crown pneumonia epidemic, my country has submitted an excellent report card. The value was 101,5986 billion yuan, an increase of 2.3% over the previous year. The per capita GDP exceeded US$10,000, the economic structure continued to be optimized, and major engineering projects were basically completed. Ning Jizhe, deputy director of the National Development and Reform Commission and director of the National Bureau of Statistics, said: “The epidemic prevention and control work has achieved major strategic results. The main goals and tasks of economic and social development have been completed, and the completion is better than expected. The 13th Five-Year Plan was successfully completed. Officials, the victory of building a well-off society in an all-round way is in sight.”
A decisive victory was achieved in the decisive battle against poverty. Under the current standards, all rural poor people have been lifted out of poverty, 832 poor counties have all been removed, absolute poverty has been eliminated historically, and 55.75 million rural poor people have been lifted out of poverty. In 2020, the seven provinces (regions) of Guangxi, Sichuan, Guizhou, Yunnan, Gansu, Ningxia, and Xinjiang, where there are more poor people, the nominal growth rate of per capita disposable income of rural residents is 0.2-1.7 percentage points higher than the national growth rate of rural residents. The macro-control has achieved remarkable results.
Ning Jizhe said: “The quarterly economic growth indicators have returned to normal levels. In the fourth quarter, GDP grew by 6.5% year-on-year, 0.7 percentage points higher than the same period of the previous year. In 2020, 11.86 million new jobs were created in cities and towns across the country, exceeding the full year. Goals and tasks. In 2020, the consumer price index CPI will increase by 2.5% over the previous year, which is lower than the expected target of about 3.5%. In 2020, the national per capita disposable income will increase by 2.1%, which is basically in line with economic growth.”
The implementation of “six stability” and “six guarantees” has achieved remarkable results, and reform and opening up have created miracles of development. The benefits of multiple ownership enterprises have been improved. Ning Jizhe introduced: “In 2020, the added value of high-tech manufacturing will increase by 7.1% over the previous year, 4.3 percentage points faster than the added value of all regulated industries. The growth of foreign trade and foreign investment is better than expected, and global trade and cross-border investment will shrink sharply. Under the circumstances, my country’s total imports and exports of goods in 2020 hit a record high, an increase of 1.9% over the previous year. From January to November, the actual use of foreign capital increased by 6.3% year-on-year.”
In 2020, the total economic volume will exceed the one-hundred-billion-yuan mark. Ning Jizhe emphasized that this means that my country’s economic strength, scientific and technological strength, and comprehensive national strength have jumped to a new stage. It is of great landmark significance for building a well-off society in all respects and starting a new journey of building a socialist modern country in an all-round way. He pointed out: “Within 20 years, the total economic scale will be expanded to 10 times, and the achievements have attracted worldwide attention. In 2020, my country’s GDP will reach about 14.7 trillion US dollars, ranking second in the world, and accounting for 17% of the world economy. Around. In 2020, the per capita GDP will exceed 10,000 U.S. dollars for two consecutive years, stabilizing the ranks of upper-middle-income countries, and the development gap with high-income countries will continue to narrow.”
“You can go up to nine days to capture the moon, and you can go down to the five oceans to catch turtles” has become a reality. Technological innovation is becoming more and more active, injecting new vitality into high-quality economic development. my country’s industrial and agricultural production capacity has increased significantly. The total grain output hit a record high and continues to rank first in the world.
“The output of more than 220 kinds of industrial products ranks first in the world, and the added value of manufacturing is expected to rank first in the world for 11 consecutive years. The infrastructure continues to improve, and the total operating mileage of high-speed railways has reached 38,000 kilometers and the mileage of expressways has exceeded 155,000 kilometers. The number of 5G terminal connections has exceeded 200 million, ranking first in the world.” Ning Jizhe said.
More importantly, this has laid a solid foundation for my country to build a new development pattern. Ning Jizhe said that the key to accelerating the formation of a new development pattern in which domestic and international cycles are the mainstay and the mutual promotion of domestic and international cycles lies in tapping the potential of domestic demand, especially consumer demand. He introduced: “my country’s population ranks first in the world, and the middle-income group is also the largest in the world. In 2020, the total retail sales of consumer goods will be close to 40 trillion yuan, the final consumption expenditure will exceed 55 trillion yuan, and the total capital formation will also be close to 45 trillion yuan. This will help my country’s superior market size to be further brought into play.”
In the past year, the total retail sales of consumer goods continued to show negative growth throughout the year, down 3.9% from the previous year. However, the third and fourth quarters have turned positive, especially in the fourth quarter that the total retail sales of consumer goods increased by 4.6%. This rate has begun to approach the normal level of previous years. Ning Jizhe said that my country’s consumption is still the ballast stone for the stable operation of the economy! “From 2011 to 2019, my country’s consumption rate averaged 53.4%. In 2020, despite the impact of the new crown pneumonia epidemic, the final consumption expenditure accounted for the proportion of GDP. It still reaches 54.3%, which is 11.2 percentage points higher than the total capital formation, and is the highest level in recent years. Consumption is still the ballast stone for the stable operation of the economy.”
Ning Jizhe said that due to the epidemic, the growth rate of total social consumer retail sales fluctuated slightly in December, but from the overall trend, my country’s consumption was able to play a fundamental factor in economic development while increasing production and supply. Looking forward to 2021, there are many favorable factors that support the stable recovery of the economy. my country’s economy has a foundation and conditions to continue its steady recovery. Although the current pressure on the prevention and control of the epidemic to “import from external defenses and rebound from internal defenses” is still great, the fundamentals of my country’s long-term economic improvement have not changed.
“The obvious institutional advantage is the fundamental guarantee for economic stability and long-term social stability. Although the epidemic has spread in some places recently, the overall impact on the economy is controllable. We have the conditions and ability to control the spread of the epidemic and operate the economy. Stay within a reasonable range to achieve sustained and healthy development of the Chinese economy.” Ning Jizhe said.