Pests carried in containers and bulk cargoes can cause billions of dollars in crop damage

According to the Seatrade Maritime News shipping lines, shippers, and governments are working together to combat the global issue of pests carried in containers and bulk cargoes that can cause billions of dollars in crop damage.

The spread of invasive species via the containerized supply chains is becoming increasingly recognized as a major concern by governments and as Seatrade Maritime News reports Australia and NZ, which have strong bio-security concerns, already have seasonal measures in place to combat the importation of the brown marmorated stink bug.

Given the global concerns there are ongoing discussions between shipping lines, shippers and government representatives and other supply chain stakeholders to introduce measures that will mitigate the chances of costly infestations.

Any new measures are likely to have some slowing effect on the movement of freight through supply chains and will add to costs.

A specialist conference held in London last year, with a follow-up meeting in Brisbane in July this year, saw the Sea Containers Task Force, organized by the International Plant Protection Convention (IPPC) an arm of the UN’s Food and Agriculture Organization, look at possible measures to prevent the spread of invasive species on transport containers.

Ahead of last year’s London conference IPPC secretary Dr. Osama El-Lissy said, “Invasive pests remain the main drivers of biodiversity loss. As the world becomes more globalised and interconnected, the increase in the movement of people and goods has been associated with the rise of the introduction and spread of plant pests across borders.”

According to El-Lissy every year as much as 40% of global crops, valued at around US$220 billion, are lost due to invasive pests.

This year the Task Force saw the Global Shipper’s Forum (GSF) chair Paul Zalai and Lars Kjaer of the World Shipping Council (WSC) tender proposals that will help container supply chain stakeholders to tackle the problem of invasive pests.

One of the longer-term proposals, is to transition from wooden floored containers to steel and composite floors.

GSF director James Hookham points out, “Wooden floored containers can harbour pests such as khapra beetles, whose larvae can lie dormant in wood for long periods of time.”

Such a move to steel and composite flooring in containers will take time so in the interim to stem the flow of invasive species the Brisbane Sea Container discussions centered around, custodial responsibility and other measures that can be used to cut the levels of hitchhiking bugs.

Anna Larsson, a spokeswoman for WSC, told Seatrade Maritime News, “The design of the containers, such as materials used, especially for flooring, and design details are an important aspect in preventing pest transfer.”

Indications show that newer container floor options like steel or floors with no cracks and crevices are less susceptible to enabling the spread of pests. More testing work needs to be done on this issue said Larsson.

Cleaning containers

Another issue raised in Brisbane has been custodial responsibility, which requires each stakeholder in the supply chain to inspect and clean the container before passing the box on to the next stakeholder.

Larsson said, “WSC has long been advocating the importance of all parties in the supply chain taking custodial responsibility for their part of the chain. Together with targeted inspection and treatment schemes for containers and cargoes this is an effective and efficient way of reducing the risk of hitchhiker pests.”

Additionally, there was advice that loading should take place with regard to minimizing the attraction of bugs to the container, so not under lights in the dark, and on hard standings rather than mud or grass.

Moreover, Zalai, proposed that shipping lines publish data on each container online, which can be accessed via a search using the boxes’ serial number.

That will allow shippers to look at the container’s history when the shipping line offers it as an empty box to ship cargo to its client. Data such as the recent history of where the box has travelled, what cargo was carried and when it was last cleaned and how, would assist shippers in deciding whether the container posed a higher or lower risk of contamination of their freight.

Shipping lines are on board with this view, said Larsson. “During the recent IPPC workshop, Australia again raised the idea of data on historic container movements, to assist in the risk assessment for targeting of inspections. WSC is very willing to work with regulators and others in developing such a considered system for historic container movements that is accepted globally. We are now awaiting feedback from regulators on key critical elements such as how long the period to be covered should be and what data elements they would like to include. “

The WSC concluded, “We are happy to be working together with GSF on the important topic of pest prevention. Shippers and carriers coming together around the importance of each party in the supply chain taking custodial responsibility for their containers and cargoes being pest free is great progress in reducing the risk of pest transfers.”

 

Saudi foreign trade grows to US$172 billion

Saudi Minister of Commerce and Chairman of the Board of Directors of the General Authority of Foreign Trade, Dr. Majid Al-Qasabi, said that the Kingdom's foreign trade in a year amounted to US$172 billion.

He made these remarks at the G20 Trade and Investment Ministers' meeting, which was held on 24-25 August 2023 in Jaipur, India.

During the session on "Trade for Growth and Prosperity, and WTO Reforms," he reviewed the impact of reforms on the Saudi economy in light of the Kingdom's Vision 2030, which offers significant initiatives to increase the integration of the Saudi economy regionally and globally.

He said that the volume of non-oil exports grew by 40% between 2018-2022 to US$28.7 billion, while the value of loans provided by the Saudi Export-Import Bank were reported at US$4.6 billion.

The minister added that the total number of small and medium enterprises in the Kingdom has reached 1.2 million, providing 80% of the jobs, and the annual growth of e-commerce reached 33% during 2016-2022.

Dr. Al-Qasabi stressed that the Kingdom made major gains as a result of the reforms it has undertaken during the past years, reflected in enhancing its competitiveness, as it ranked second among the G20 countries in digital competitiveness, as per the Digital Riser 2021 report and ranked sixth among 50 emerging countries in the "Agility" index for emerging markets for the year 2022.

The minister also said that the Kingdom ranked 17th among 64 countries in the World Competitiveness Yearbook (IMD) report for 2023 and 38th out of 138 per the Logistics Performance Index for 2023.

This year's G20 meetings are hosted in India under the theme "One Earth, One Family, One Future" to build a strong and developed global economy.

Pakistan Stock Exchange witnesses lackluster week

The week ended on August 25, 2023 remained lackluster, with the KSE-100 index losing 547 points to close at 47,671 level.

The anticipation of heightened inflation had a negative impact on the market, fearing an ad-hoc policy rate hike. However, the recent T-bill auction negated that sentiment, with yields largely maintaining their flat trend as compared to the previous auction.

Now the focus is on September 2023 CPI data and the Monetary Policy Committee meeting scheduled for September 14, 2023.

Nonetheless, owing to a week full of result announcements, market participation witnessed daily trading volume averaging at 206 million shares, as compared to the previous month average of 167 million shares.

The current account shifted from a four-month streak of surplus to a deficit of US$809 million, mainly due to an increase in imports (up 33%MoM) and worker remittances (down 15%MoM) during the month.

Foreign exchange reserves held by the SBP eroded by US$125 million to US$7.9 billion as of August 18, 2023. Additionally, due to import pressures and dividend repatriations, PKR depreciated by 1.74%WoW, to close at PKR301 against the greenback.

Furthermore, throughout the trading week, the gap between the interbank and open market exchange rates remained 4% to 5%. According to the IMF agreement, this gap should not be ±1.25% for 5 consecutive days.

Other major news flows affecting market during the week included: GoP borrowed US$2.89 billion borrowed from multiple financing sources during the first month of the current financial year, 2) Revised GDP growth under PDM government may turn out to be over negative one percent, 3) Power tariff hike, 4) Banking sector spread decreases by 64bps MoM in July, 5) Power generation was up 5% and cost of generation was down 22 percent, 6) RDA inflows touched US$6.487 billion, but faced headwinds from global rates, 7) Election Commission said election not possible before May 2024.

Synthetic & Rayon, Textile Weaving, and REIT were amongst the top performing sectors, while Cable & Electrical Goods, Pharmaceuticals, and Inv. banks/ Inv. cos./ Securities cos. were amongst the worst performers.

Net selling was recorded by Individuals with a net sell of US$8.2 million. Insurance absorbed the selling with a net buy of US$19.0 million.

Top performing scrips during the week were: SCBPL, HMB, IBFL, BAFL, and MARI, while top laggards included: AGP, PSX, GADT, PAEL, and FABL.

Market is expected to sustain a positive outlook, driven by a series of favorable developments with talks being commenced between the IMF and the caretaker government and the confidence of bilateral partners.

Given the ongoing trend of significant currency devaluation, analysts recommend investors to consider investing in companies with revenue in US$ (Tech and E&Ps). Another viable approach is to focus on companies that offer healthy dividend yields or companies with strong valuations.

 

 

 

 

Turkey: Navigation affected due to wildfires

More than 150 vessels, including 23 tanker and 33 dry bulk vessels were halted at the northern and southern entrances of Turkey’s Dardanelles straits amidst raging wildfires in coastal regions, with northbound shipping resuming by late Thursday

Ship traffic resumed on Thursday in one direction in Turkey's Dardanelles Strait, its forestry minister said, as firefighters brought a major blaze in the northwest Canakkale region under control.

The strait, which links the Aegean Sea and Black Sea to the north, is a major shipping route for commodities such as oil and grains.

More than 150 ships had been halted at the north and south entrances to the Dardanelles on Wednesday evening to allow for helicopters and planes to scoop up water to douse the flames.

"We have brought the fire under control before 48 hours were up ... Our only consolation is that there has been no loss of life," Forestry Minister Ibrahim Yumakli told reporters.

Aerial vehicles will continue cooling efforts throughout the day on Thursday and ship traffic in the Dardanelles resumed in one direction, he said, without specifying which one.

Shipping agency Tribeca said northbound ships would be allowed to transit the Dardanelles after 0800 GMT on Thursday.

Helicopters and land vehicles battled after darkness fell on Wednesday to contain the fire and ship traffic resumed for several hours before being halted again just after midnight GMT.

More than 1,200 people from 11 villages have been evacuated from the path of the fire, which broke out in Cannakale province on Tuesday and was fanned by high temperatures, dry air and strong winds.

Some 90 people suffered injuries from the fire, which affected 4,080 hectares around 11861 acres, including forest and agricultural land, authorities said. No deaths were reported.

 

Iran completes drilling of 42 oil and gas wells

National Iranian Drilling Company (NIDC) has completed drilling operations of 42 oil and gas wells during the first five months of the current Iranian calendar year.

According to Masoud Afshar, Deputy Head of NIDC for drilling operations, three of the drilled wells were development and the rest were work-over ones, Shana reported.

The official stated that during the mentioned time span NIDC managed to dig eight more wells as compared to the figure for the same period last year.

As reported, 35 of the drilled wells were in the operational zone of the National Iranian South Oil Company (NISOC), one well was drilled in the fields under the supervision of the Iranian Offshore Oil Company (IOOC), three were in the fields under the operation of Petroleum Engineering and Development Company (PEDEC), and three wells were drilled in fields developed by private contractors.

According to the official, currently, 63 of the company’s rigs are active and 10 are being overhauled.

Over 43,416 meters of drilling were conducted for the mentioned wells, the official said, noting, “We are trying to play our role optimally by using the company’s maximum operational capacities in order to realize the Oil Ministry's plans to increase production.”

Considering the National Iranian Oil Company (NIOC)’s strategies for strengthening the presence of domestic companies in the development of the country’s oil fields, NIDC, as a major NIOC subsidiary, has been supporting such companies by lending those drilling rigs and other necessary equipment.

 

BRICS getting bigger to reshuffle world order

Major emerging market nations invited top oil exporter Saudi Arabia, along with Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates, to join their bloc in an ambitious push to expand global influence. The new BRICS members bring together several of the largest energy producers with the developing world’s biggest consumers, suddenly giving the bloc outsized economic clout. With most of the world’s energy trade taking place in dollars, the expansion could also enhance its ability to push more trade to alternative currencies.

In deciding in favour of an expansion - the bloc's first in 13 years - BRICS leaders left the door open to future enlargement as dozens more countries voiced interest in joining a grouping they hope can level the global playing field.

The expansion adds economic heft to BRICS, whose current members are China, Brazil, Russia, India and South Africa. It could also amplify its declared ambition to become a champion of the Global South.

The long-standing tensions could linger between members who want to forge the grouping into a counterweight to the West - notably China, Russia and now Iran - and those that continue to nurture close ties to the United States and Europe.

"This membership expansion is historic," Chinese President Xi Jinping, the bloc's most stalwart proponent of enlargement, said. "It shows the determination of BRICS countries for unity and cooperation with the broader developing countries."

Originally an acronym coined by Goldman Sachs chief economist Jim O'Neill in 2001, the bloc was founded as an informal four-nation club in 2009 and added South Africa a year later in its only previous expansion.

The six new candidates will formally become members on January 01, 2024, South African President Cyril Ramaphosa said when he named the countries during a three-day leaders' summit he is hosting in Johannesburg.

"BRICS has embarked on a new chapter in its effort to build a world that is fair, a world that is just, a world that is also inclusive and prosperous," Ramaphosa said.

"We have consensus on the first phase of this expansion process and other phases will follow."

The countries invited to join reflect individual BRICS members' desires to bring allies into the club.

Brazilian President Luiz Inacio Lula da Silva had vocally lobbied for neighbour Argentina's inclusion while Egypt has close commercial ties with Russia and India.

The entry of oil powers Saudi Arabia and UAE highlights their drift away from the United States' orbit and ambition to become global heavyweights in their own right.

Russia and Iran have found common cause in their shared struggle against US-led sanctions and diplomatic isolation, with their economic ties deepening in the wake of Moscow's invasion of Ukraine.

"BRICS is not competing with anyone," Russia's Vladimir Putin, who is attending the summit remotely due to an international warrant for alleged war crimes, said on Thursday.

"But it's also obvious that this process of the emerging of a new world order still has fierce opponents."

Iran's President Ebrahim Raisi celebrated his country's BRICS invitation with a swipe at Washington, saying on Iranian television network Al Alam that the expansion shows that the unilateral approach is on the way to decay.

Beijing is close to Ethiopia and the country's inclusion also speaks to South Africa's desire to amplify Africa's voice in global affairs.

United Nations Secretary-General Antonio Guterres attended Thursday's expansion announcement, reflecting the bloc's growing influence. He echoed BRICS' longstanding calls for reforms of the UN Security Council, International Monetary Fund and World Bank.

"Today's global governance structures reflect yesterday's world," he said. "For multilateral institutions to remain truly universal, they must reform to reflect today's power and economic realities."

BRICS countries have economies that are vastly different in scale and governments with often divergent foreign policy goals, a complicating factor for the bloc's consensus decision-making model.

Though home to about 40% of the world's population and a quarter of global gross domestic product, internal divisions have long hobbled BRICS ambitions of becoming a major player on the world stage. It has long been criticized for failing to live up to its grand ambitions.

The regularly repeated desire of its member states to wean themselves off the dollar has never materialized. Its most concrete achievement, the New Development Bank, is now struggling in the face of sanctions against founding shareholder Russia.

Bloc heavyweight China has long called for an expansion of BRICS as it seeks to challenge Western dominance, a strategy shared by Russia.

Other BRICS members support fostering the creation of a multi-polar global order. But Brazil and India have both also been forging closer ties with the West.

Brazil's Lula has rejected the idea that the bloc should seek to rival the United States and Group of Seven wealthy economies. However, as he departed South Africa on Thursday, he said he saw no contradiction in bringing in Iran - a historical arch-foe of Washington - if it advanced the cause of the developing world.

"We can't deny the geopolitical importance of Iran and other countries that will join BRICS. ... What matters is not the person who governs but the importance of the country."

 

United States seeking military cooperation with Bangladesh

A two-day bilateral dialogue between Bangladesh and the United States began in Dhaka today with an aim to discuss cooperation on a myriad of defence topics. The aim of this dialogue is to create an opportunity for wide-ranging discussions on military cooperation between the two countries, said ISPR.

The dialogue will officially end on August 24.

Director General at the Bangladesh Armed Forces Division Brig Gen Husain Muhammad Masihur Rahman is leading the Bangladesh side while Director of Strategic Planning and Policy of the US Indo-Pacific Command Brig Gen Thomas J James is leading the US delegation.

Senior officials of the Ministry of Foreign Affairs, Armed Forces Division, Border Guard Bangladesh, and Bangladesh Coast Guard were present on behalf of Bangladesh.

 “The United States and Bangladesh share a vision to ensure the Indo-Pacific region is free, open, peaceful, and secure. In pursuit of these mutual objectives, the Bangladesh Armed Forces Division and Indo-Pacific Command will conduct the bilateral defence dialogue in Dhaka,” US Embassy Spokesperson Bryan Schiller said.

This dialogue, he said, will feature senior officers and civilians from the US and Bangladeshi militaries.

“They will discuss military education, defence articles, and upcoming military exercises, including next year’s disaster response exercise and exchange,” said the spokesperson.

This dialogue, he said, is part of a comprehensive relationship between two countries’ defence establishments, which features cooperation on a myriad of defence topics.

The US said they are encouraged that Bangladesh’s Indo-Pacific Outlook declares Bangladesh’s vision for a “free, open, peaceful, secure, and inclusive Indo-Pacific for the shared prosperity for all.

The bilateral defence dialogue between Bangladesh and the US started with a joint declaration in 2012. Since then, every year, the dialogue has taken place alternately in Bangladesh and the USA. The 9th defence dialogue was held on 17-18 May 2022 at Honolulu, Hawaii.

The purpose of this dialogue was to facilitate a broad discussion on bilateral defence and military cooperation as a complement to the strategic dialogue.

Over the years, the two countries have enjoyed cordial diplomatic relations and partnered on a wide range of security issues, including border security, maritime security, counterterrorism, peacekeeping, defence trade, and defence institution building.

The two governments continue to work together to advance a shared vision of a free, open, inclusive, peaceful, and secure Indo-Pacific region.

Earlier, the US delegation had a courtesy meeting with Principal Staff Officer (PSO) of the Armed Forces Division Lieutenant General Waker-Uz-Zaman.