April 15, 2324 6:35 pm

Activity Around The World

Activity Around The World
Brazil Privatizes Ports, Turkey Restricts Trade, and South Korea Doubles Capacity. Your weekly All-Ways round-up of Supply Chain news.
Brazil Needs A Boost
Brazil's ports are grappling with escalating cargo volumes and constrained capacity, resulting in shipment delays and increased costs for shipping entities and traders.

Key issues include extended docking wait times exceeding five days, high customs clearance costs and times compared to OECD averages, and delays in implementing technological advancements in port processes. Collaborative efforts between government and industry are underway to tackle these challenges, including privatization, infrastructure upgrades, and the adoption of new technologies.

The Port of Navegantes, in particular, is undergoing dock renovations to accommodate larger vessels, a process that began last year and has affected shipping operations in the southern region of Brazil. To mitigate vessel backlogs and increased container congestion due to reduced docking capacity, several shipping carriers have diverted their services from Navegantes to nearby ports such as Itapoa and Imbituba.

However, this redirection has strained the capacity of Itapoa port, causing overcrowding and delays in container handling. As a consequence, cargo transfers to later vessels have become common, leading to delays and challenges for exporters across Brazil.

Despite these circumstances, stakeholders are working tirelessly to support shippers and manage shipments as efficiently as possible in the face of these unforeseen challenges.

Mariana Yoshioka, director of innovation and technology at Hidrovias do Brasil, emphasized the potential for collaboration and innovation to address these challenges, promoting economic and social development in Brazil's maritime sector.

Turkey Terminates Trade
Turkey has declared trade restrictions on Israel, impacting products like cement, steel, and iron construction materials, following Israel's rejection of Turkey's request to partake in an aid airdrop for Gaza.

Turkey's trade ministry emphasized that these restrictions will persist until Israel declares an immediate ceasefire and ensures uninterrupted humanitarian aid flow into Gaza.

In response, Israel announced plans to compile an extensive list of Turkish items for import bans and to lobby globally, including in Washington, for other countries to penalize Turkey. Israel's Foreign Minister ordered preparations to prevent Turkey from exporting certain goods to Israel, citing unilateral violations of trade agreements.

The tensions highlight a deterioration in relations, with Israel accusing Turkey of supporting Hamas and violating trade pacts, while Turkey criticizes Israel's actions in Gaza. This trade dispute not only threatens economic ties but also reflects broader geopolitical tensions in the region.

South Korea Supplements National Fleet
South Korea's President Yoon Suk Yeol has unveiled plans to invest $4 billion to double the national container shipping fleet's capacity to 2 million TEUs by 2030.

This initiative aims to strengthen carriers like HMM, Korea Marine Transport Company (KMTC), and Sinokor Merchant Marine. Funding will provide eco-friendly ship financing to national shipping companies through the Korea Ocean Business Corporation (KOBC).

The announcement updates a 2022 initiative, which earmarked $2 billion to expand capacity to 1.3 million TEUs.

The government's latest move follows the abandonment of plans to privatize a majority stake in HMM, which has prompted HMM to reassess its own expansion plans, including ordering nine 9,000-TEU methanol-enabled ships.

Additionally, the government plans to develop container terminals at Busan, costing around $32 billion, and Jinhae New Port, expected to cost $1 billion for its first phase.

By 2032, Jinhae New Port is slated to become a smart mega port, while efforts will be made to enhance the competitiveness of Gwangyang and Incheon ports.

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