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Issue 4 2021 - FBJNA


two weeks of March.


On eastbound sectors, for example, the Chicago (ORD) to Western Europe route reached levels of 80% earlier in the month, the tipping


point at which prices often increase exponentially. On this market, they went up by around 25% during this timeframe, even though the loadfactor increased by ‘just’ 5% points. ‘And the prices


came down just as fast again when the loadfactor dropped below this tipping point,’ CLIVE stated. Comparing the current


China-to-Europe tradelane to 2019 shows a similar pattern


at a global level. The push forward in this market seems to be decelerating. Volumes in the second week of March were 7% higher than in 2019, but then dropped to 6% and 4% in the following weeks.


and it handled an average of 4,760 gate moves per day. Stephen A. Edwards, CEO


and executive director of the Virginia Port Authority, is anticipating robust volumes in April and May as the port will begin receiving the ships and cargo that were delayed as a result of the blockage of the Suez Canal. “Our volumes were solid


The Port of Virginia® in March set a new record for monthly TEU volume having handled nearly 280,000 TEUs and processing the volume with fluidity. March’s record TEU volume was more than 60,000 TEUs


ahead of March 2020 and was driven by heavy loaded import volume, which was up 31%, and a growing number of empty containers for export, which were up nearly 94%. March’s volume was just 354 TEUs shy of tying the port’s all-time


DHL Express


uncovers next wave of E-commerce growth


In a study recently released entitled “The Ultimate B2B E-commerce Guide: Tradition is out. Digital is in”, DHL Express predicts strong growth for the B2B E-commerce market in the coming years: by 2025, 80% of all B2B sales interactions between suppliers and professional buyers will take place in digital channels. The impact of the Covid-19 on


pandemic the pace


of digitalization and the purchasing behavior of technology-savvy millennials, who are now of an age to be the professional B2B decision- makers, are the main drivers of this global E-commerce growth. What is predicted for the


future of the B2B sector, has already been visible in the significant B2C E-commerce rise over the last years, where DHL Express experienced high growth rates particularly during the holiday peak seasons (e.g. Easter, Christmas) and mega shopping days (e. g. Black Friday, Cyber Monday). In total the B2C E-commerce volumes within the DHL Express network increased in 2020 by approximately 40%, compared to 2019. This positive business


development is also reflected in DHL’s FY2020 financial results. With a total revenue of €19.1 billion (+11.9% year-on- year) and EBIT of €2.7 billion (+34.9%) the Express division of Deutsche Post DHL Group closed 2020 with the best result in its more than 50 years history. With its worldwide network and


breadth of industries


served, DHL Express was able to accommodate fast-changing trade flows. Furthermore, its presence in more than 220 countries and territories helped consumers and businesses to stay connected by enabling them to trade around the world – also during the Covid-19 pandemic. “Even in times of worldwide


shutdowns, globalization has shown its resilience, fueled by


digitalization and the


power of global trade”, says John Pearson, CEO of DHL Express. “These trends have led to an ever-growing number of consumers to shiſt their shopping activities online. The pandemic has accelerated this development like never before, with a sharp rise in businesses selling their goods in the global marketplace. E-commerce and global logistics thus provided


monthly volume record, which was set last November. The port processed March’s


record volume with world- class results: expanded turn times for trucks was less than 50 minutes; average rail-ready dwell for imports was 45 hours;


the key to unlock local


shutdowns, keep economies running and mitigate the impact of Covid-19 for many of our customers.” But it was not only B2C


E-commerce that was growing due to ongoing digitalization and changed shopping behavior of consumers. In 2019, before the pandemic, global sales on B2B E-commerce sites and marketplaces had already increased by 18.2% to reach $12.2 trillion, outpacing the market size of the B2C sector. Through Covid-19 and the


resulting acceleration


of digitalization, this global B2B E-commerce volume is estimated to reach $20.9 trillion by 2027. “We have been facing the


pandemic for over one year now”, says Michiel Greeven, Executive Vice President Global Sales at DHL Express. “A year that showed how nearly a decade of digital evolution happened in just a few months’ time, with online shopping and cross-border shipping as the new normal. And this is true not only for B2C retailers, but also in terms of B2B E-commerce as companies started recognizing that online selling platforms are crucial for their business success, today and in the future. As a result, there will also be an additional need for global Express shipping and DHL Express is well positioned to support all B2B companies on


across all phases of the operation and the team and the terminals are performing well


and delivering world-


class results for our customers and cargo owners,” Edwards said. “We are consistently processing nearly 40,000 liſts


their journey.” The Whitepaper, compiled


by DHL Express, uncovers factors driving the growth of the global B2B E-commerce market: besides general trends such as globalization and digitalization, a new technology-oriented generation of millennials is starting to make Already,


millennials account


for 73% of all professional B2B purchasing decisions. As digital natives, their experiences in the B2C-sector translate to high expectations when B2B


making transactions, pushing


companies to invest in digital solutions, such as selling platforms, while offering great growth potential. “If B2B businesses want to


make the most out of the new cross-border and E-commerce opportunities they need to start adapting to the changing buying behaviors. Especially with the upcoming generation of millennial as B2B decision- makers, who are further driving the digitalization of the sector. B2B customer experiences have to be more aligned with the digital B2C experiences. As international E-commerce specialists, we have the know-how and insights to support businesses to adapt to the ongoing changes and unleash their full potential” says Leendert van Delſt, Vice President Global Sales Programs and Global E-commerce.


But data shows westbound flights from China still filled to the brim with a ‘dynamic loadfactor’ for the month of 93%.


Analyses by TAC Index continues to confirm the


a week at the terminals and we anticipate that number will near the 50,000-level during the last half of April and into May.”


In preparation for a brief


volume increase, the port today extended the operating hours at Norfolk International Terminals (NIT), Virginia International Gateway (VIG), Pinners Point Container Yard (PPCY) and the Reefer Service Area (RSA); the extension will run through Friday, June 4. “Adding an hour to the day


is the prudent move to ensure operational fluidity and access to the terminals and cargo,” Edwards said. “Our operations


///NEWS


impact of high load factors on airfreight pricing. China and Hong Kong-Europe pricing for the last three years reveals an increase of 30% and 17% respectively YoY, or a rise of over 50% versus 2019.


are designed for flexibility and in this case, we can easily expand to accommodate the demand.” In late March, the port


added 10 new Kalmar Hybrid Shuttle Carriers to its shuttle carrier fleet at VIG to help drive operational efficiency and build upon the port’s sustainability effort; 10 more shuttle carriers are set to arrive later this month. “We


are continuing to


invest and strategically add equipment


to build capacity,”


Edwards said. “These new units give us the capacity to support an additional 300,000 container liſts.”


GT USA Wilmington


welcomes Dole Maya on maiden call to Delaware


its mark.


GT Wilmington’s CEO, Eric Casey presents plaques to mark the occasion to Master of the Vessel, Captain Dhruv Sharma and to Dole’s Terminal Manager, David Lennon. (GT USA Wilmington photo.)


GT USA Wilmington, the US- based operator of the Port of Wilmington, DE, welcomed the M/V DOLE MAYA on its first call at the Wilmington Marine Terminal in late March. Built in 2021, the “M/V DOLE


MAYA” is named to recognize the indigenous people of the region the vessel serves, carrying Dole’s fresh exports to the valued customers and consumers of the South and Central United States. The vessel name represents Dole’s


respect and admiration for the ethos of the cultures with which these regions were bestowed. With a capacity of over 900+ forty-foot equivalent units (FEUs) refrigerated containers the vessels are equipped with machinery that is not only economical in fuel consumption per container carried, but it was also built to meet strict emission mandates that demand a substantial


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