A word from GPLN: Newsletter Issue 76 / July-August 2020
The project logistics industry is facing a big challenge to overcome the Covid-19 pandemic as the two first consecutive quarters in 2020 of GDP contractions in almost all countries indicate the start of an economic recessions. Tighter credit markets, reduced investor confidence and commodity price volatility all have a negative effect in the next months and years to come. Economic crises have come, gone and returned for as long as there have been markets. A key trend to stay afloat are various government stimulus packages and the role they will play in kick-starting economies which is a significant proportion of these funds to be invested into infrastructure projects. China, which has managed to avoid a recession according to the country’s national bureau of statistics, unveiled a USD 667 billion stimulus package in mid-May 2020. Considering that China is the world’s largest commodity importer, some industries should be able to move forward on a slightly surer path. Europe, meanwhile, has remodelled its Covid-19 recovery package into a green energy portfolio with renewable energy and climate neutral industry at the heart of a USD 827 billion stimulus.
On another note it was reported that the Port of Bilbao has recorded strong growth of wind energy components in the first half of 2020. Despite the Coronavirus, which caused many manufacturers to temporarily shut down factories, volumes rose by 23%. The Spanish port is facilitating the industry further with the aim to become a major wind energy hub. The strong growth is remarkable as the European wind energy installations for 2020 are expected to be 30% down compared to industry forecasts, according to Wind Europe, which names Spain and Italy as the most heavily impacted countries.
In other news, Drewry reported that charter rates for multipurpose ships are not expected to recover back to pre-Covid-19 levels until the end of 2021, with the recovery anticipated to take even longer if the global pandemic is not contained. The shipping analyst expects the virus to be contained globally over the next few months, with a second wave being avoided. If this positive forecast will be the case it would allow both the global economy and dry cargo demand to rebound in 2021. This year the global economy will record a sharp recession over the year with the latest assumptions for global GDP at minus 5% when compared to 2019.
As you know, we have moved this year’s AGM to next year and it will now take place in Bremen from May 15-17, 2021, again at the Dorint Parkhotel which was our venue in 2018 and 2019. We have scheduled our annual conference just ahead of Breakbulk Europe (May 18-20, 2021), so that our delegates can combine both events in the same city. All relevant details are published on our dedicated AGM page of our website. This is obviously subject that the world is back to normal by then.
Breakbulk Europe which was rescheduled to September 29 to October 1, 2020 has been finally cancelled and moved to next year. Considering the ongoing increase of infected people with the Covid-19 virus in USA and also travel- and other restrictions all over the globe, we have decided not to exhibit at Breakbulk Americas in Houston which was postponed from end of September to early November 2020 and GPLN will therefore not attend any logistics event until the end of the year.
Stay safe and healthy!
Your GPLN team
|New GPLN Members / July – August 2020
||Guayaquil & Quito
||Intercilsa Logistics Cia. Ltda.
||Clasquin Germany GmbH
||Interliner Agencies Limited
||ALPHA Projects & Logistics (PTY) Ltd.
||Falcon Air Services & Transport Co. LLC