1. The United States Postal Service plans to increase prices for Parcel Select

 On May 13th, the USPS announced that if approved by the commission, the new rates would entail an average 25% increase for Parcel Select service. Parcel Select is a shipping solution for bulk shippers to input packages into the USPS network for regional delivery. The price hike is set to take effect on July 14th, pending approval from the Postal Regulatory Commission. Additionally, USPS did not propose raising prices for USPS Ground Advantage parcel shipping.

Source: USPS

2. USPS reports second-quarter revenue of $19.7 billion

On May 13th, USPS disclosed its financial performance for the second quarter of the 2024 fiscal year. Under generally accepted accounting principles, the net loss for this quarter totaled $1.5 billion, compared to $2.5 billion for the same period last year. Total operating revenue for the quarter was $19.7 billion, an increase of $410 million, or 2.1%, compared to the same period last year. Revenue in the entire transportation and parcels category increased by $89 million, or 1.2%, compared to the same period last year, with volume increasing by 25 million pieces, or 1.5%.

Source: USPS

3. French postal service DPD Group signs cooperation agreement with Airport New City

 On May 13th, Airport New City and DPD Group signed a strategic cooperation agreement to open a full-freight air route from Xi'an, China to Budapest, Hungary, and to establish a transit (distribution) center for air cargo in the western part of China. The Xi'an-Budapest full-freight regular route is planned to operate 104 flights throughout the year, with 2 round trips per week, bringing approximately 6,000 tons of international cargo to Xi'an annually.

Source: DPD International Express

4. Hualu Airport's total cargo volume is expected to exceed 1.2 million tons this year

On May 13th, Hualu Airport has experienced explosive growth in just one year since the opening of its first international cargo route on April 1st last year. The international cargo volume has exceeded 80,000 tons, and the total domestic and international cargo volume in the first quarter has jumped to the sixth place nationwide, with the highest growth rate in the country, and the total cargo volume this year is expected to exceed 1.2 million tons.

As of now, a total of 64 domestic and international cargo routes have been opened (including 16 international cargo routes); negotiations are underway for follow-up on 10 international cargo routes such as Ezhou to Osh, Belarus; the number of cargo airlines in operation has increased from one to six; 33 international freight forwarding companies, including China Post, China Travel International Trading, Japan Post Logistics, and Kerry Logistics, have settled in; and the Shunfeng Transit Center located in the center of Hualu Airport in Ezhou is the largest express sorting center in Asia, capable of handling over 500,000 parcels of various types per hour.

Source: Ezhou Municipal People's Government

5. TikTok Shop to expand into Latin American markets

On May 13th, TikTok announced plans to expand its e-commerce business to Mexico, France, Germany, Italy, and Spain. According to sources familiar with the matter, TikTok has begun inviting merchants to trial TikTok Shop in these markets, with the in-app feature expected to officially launch this summer.

One of the sources indicated that TikTok Shop has tightened standards for merchants. For example, merchants eligible to enter TikTok Shop in Mexico must have a locally registered entity, and initially, sales of certain types of goods will be restricted. This development will significantly broaden TikTok Shop's footprint, covering a total of 13 markets globally.

Source: South China Morning Post

6. Shopee Philippines site will no longer deduct reverse logistics fees

 On May 11th, Shopee's Philippines site announced that starting June 1st, 2024, newly created orders will no longer deduct reverse logistics fees, and sellers will bear the shipping and return costs for successfully returned/refunded orders.

Source: Shopee

7. TEMU leads Korean apps for seven consecutive months in growth

According to GAWorks Mobile Index statistics, in April, TEMU app saw an impressive increase in installations in South Korea, reaching 2.2803 million, ranking first. TikTok followed with 1 million installations, and Instagram came third with 878,600 installations. CoupangEats ranked fourth with 867,000 installations. In the shopping category, TEMU's app rose one spot from fifth to fourth, trailing 11Street with 580,000 installations.

TEMU entered the Korean market in July last year and has maintained continuous growth in app installations since October last year. In April, TEMU had 6.9318 million monthly active users (MAU), an increase of over 570,000.

Source: Yibang Power

8. TEMU, AliEngage in Struggle, Korean E-commerce Declines

Coupang, South Korea's largest e-commerce platform, reported $7.1 billion in revenue for the first quarter of this year, a 23% increase year-on-year, but a net loss of $24 million. In the same period last year, it was profitable with a profit of $90.9 million. Coupang's losses are mainly attributed to competition from new Chinese rivals.

According to third-party market research firm Wiseapp Retail Goods data, Coupang has 30 million monthly active users, ranking first in South Korea, but AliExpress and TEMU are growing faster. In February, AliExpress reached 8.2 million monthly active users in the local market, while TEMU, which entered the market only six months ago, reached nearly 5.8 million monthly active users. By March, TEMU's monthly active users had surpassed 8 million. Meanwhile, AliExpress attracted Korean merchants with its "zero commission" policy and expanded the capacity of warehouses near South Korea in Shandong to accelerate delivery speed.

Source: LatePost

9. Amazon Ireland Site to Launch in 2025

On May 13th, Amazon announced plans to open a new dedicated store, Amazon.ie, in Ireland by 2025 to enhance the retail experience for new and existing customers. The new Irish store will offer a localized shopping experience, providing customers with a wide selection of over 100 million products, including more competitively priced products from Irish businesses, and offering fast and convenient delivery and returns services.

Source: Amazon

10. Ocean Freight Rates from Shanghai to Rotterdam, Los Angeles Surge by Up to 20%

On May 13th, the Drewry Container Freight Rate Index showed a comprehensive global index increase of 16% last week, reaching $3,159 per FEU, an 81% year-on-year increase. Freight rates on routes from Shanghai to Rotterdam and Los Angeles have surged significantly, with increases of 18% to 20%. Analysts attribute the rise in rates to multiple factors, including surging demand, tight capacity, and port congestion, and expect them to remain at elevated levels in the short term.

According to data from another agency, Freightos, since the end of April, container freight rates from Asia have risen by around $1,000/FEU, pushing rates to about $4,000/FEU for routes to the US West Coast and Northern Europe, around $5,000/FEU for routes to the Mediterranean, and up to $5,400/FEU for routes to the US East Coast.

Source: Sinda Shipping

11. Guangdong to Establish 20 "Industrial Cluster + Cross-border E-commerce" Parks

On May 13th, the Guangdong Provincial People's Government Information Office held a press conference in Guangzhou. Zhang Jinsong, Director of the Guangdong Provincial Department of Commerce, stated that Guangdong will vigorously develop cross-border e-commerce and create 20 "industrial cluster + cross-border e-commerce" parks, cultivate a group of cross-border e-commerce leading enterprises with annual turnover exceeding 100 billion yuan or 10 billion yuan, and construct 500 large-scale overseas warehouses.

Source: China News Network

12. Shandong Airlines Launches Urumqi-Tashkent Cargo Route

On May 13th, Shandong Airlines successfully launched the Urumqi-Tashkent international cargo route. The route is operated by B737-800 all-cargo aircraft and is expected to achieve an annual cargo throughput of 3,000 tons after regular operations. It will mainly transport export goods such as electronic equipment, instruments, and footwear and clothing. The opening of Shandong Airlines' new international cargo route will further promote the implementation of the "Belt and Road" initiative in Central Asia, promoting the common development and prosperity of China and Central Asian countries.

Source: Qilu News