Baltimore Port Disruption Does Not Affect U.S. Port, Automaker Credit (link)
Fitch Ratings-Chicago/New York-27 March 2024: The disruption to East Coast shipping as a result of the collapse of the Francis Scott Key Bridge in Baltimore will not affect the credit of rated U.S. ports or automakers, Fitch Ratings says.
The collapsed bridge, which was destroyed when a cargo ship struck a bridge support, is now blocking entry to the Port of Baltimore. Disruptions to port traffic will persist for months while the bridge debris is cleared and a new bridge is constructed.
Chinese Firm Wins Tender to Build Peru’s Third Largest Seaport (link)
Peru’s government, through its Private Investment Promotion Agency (PROINVERSIÓN), has awarded a subsidiary of the Chinese firm Jinzhao the tender to build the country’s third largest port, San Juan de Marcona. The new terminal is projected to cost $405 million and will be located in Ica on the southern coast of Peru, about 300 miles from Lima.
UNCTAD: International trade to rebound in 2024 (link)
International trade is poised for a turnaround in 2024 following consecutive quarters of decline.
After enduring successive declines over several quarters, the outlook for international trade appears optimistic as 2024 unfolds, as indicated by the most recent Global Trade Update released by the United Nations Conference on Trade and Development (UNCTAD).
China: Industrial profits hit a 25-month high amid signs of bottoming out (link)
China’s industrial profits reached a 25-month high of 10.2% YoY ytd in the first two months of 2024. Combined with earlier industrial production data, we see positive signs for industrials having bottomed out
Italian business confidence improves in March as consumers take a breather (link)
Overall this is a positive reading, marking an improvement among manufacturers and a surprising resilience among builders. Consumers are taking a breather, showing tentative concerns about future unemployment for the first time in months
Korea: Industrial production rebounded while construction and retail sales weakened in February (link)
Thanks to strong global demand for semiconductors, IP rose more than expected. But, domestic demand appears to have weakened further, which is likely to weigh on overall GDP growth in the current quarter
EU Commission Proposes Common Agricultural Policy Revisions Following Farmer Protests (link)
On March 15, 2024, following weeks of farmer protests across the European Union demanding less administrative burden and better prices, the European Commission published a legislative proposal to amend certain provisions of the Common Agricultural Policy (CAP). The Commission acknowledged that the first year of implementation of the current CAP1 made clear that adjustments are necessary to ensure effective implementation of the National Strategic Plans and reduce red tape.
US organic imports triple, exports are increasing (link)
Increased attention among consumers to the healthfulness and environmental footprint of their diet has expanded opportunities for organic products both in the US and abroad. These developments have major implications for international trade. In just a little over a decade, the total value of imported organic products has nearly tripled from $667 million in 2011 to about $2 billion in 2023 (Figure 1). Over this same time period, U.S. exports have increased from $412 million to $582 million.
Indonesia suspends live cattle imports from Darwin export yard (link)
Indonesia has suspended live cattle imports from a Darwin export yard while authorities investigate how more than 150 animals died this month on a transport ship.
Australia suspected the deaths were caused by botulism, a paralysing disease animals pick up from eating food contaminated with particular bacterium. All the dead cattle were from the same Northern Territory property, an industry source said on background to be able to provide further information.
Chinese consumer attitudes towards sustainability (link)
Perceived personal health benefits tend to be bigger drivers of consumer behaviour than environmental concerns. In surveys, health benefit is often the top consideration followed by the quality and safety of a product. This requires companies to position how they incorporate sustainability into their marketing: less of “it is made naturally so it does not harm the planet” and more of “it is made naturally so it is good for you”. The fact that a product is eco-friendly is not sufficient as a selling point: Chinese consumers need to see a link between environmental credentials and a health benefit (reflecting the science and innovation behind it). Brands that are able to draw this link have been successful in commanding a higher price for their products. For example, some dairy brands promote the quality and benefits of grass-fed cows in China because customers perceive that to be a near-organic product and therefore healthier and more premium. Other sectors have successfully leveraged other environment-related attributes such as being carbon zero, having all natural ingredients, biodegradability, and being chemical free.
Good signs for rice exports (link)
HÀ NỘI — This year is forecasted to be the second consecutive year that rice exports exceed 8 million tonnes, bringing in about US$5 billion.
The global rice supply is decreasing, and countries such as the Philippines, Indonesia, China and some other markets are all increasing rice imports to ensure food security, which creates opportunities for Vietnamese rice export this year.
After many fluctuations in supply and price last year, global rice trade continues to be “hot” from the beginning of this year.
Potato market dynamics: Egypt’s currency woes, Ukraine’s import surge (link)
In a recent development that has sent ripples across the global potato market, two significant events have unfolded. Egypt, a key player in the potato export sector, is experiencing a sharp devaluation of its currency, the Egyptian pound, which has led to increased pressure on the international potato markets, as reported by EastFruit news.
