1 Feb, 2021
C.H. Robinson's double-digit, digital growth; EU restarts medical protectionism
By Chris Rogers
The Supply Chain Daily provides a curated overview of Panjiva's research and insights covering global trade policy, the logistics sector and industrial supply chains and draws from global shipping and freight data.
C.H. Robinson's double-digit, digital growth keeps it ahead of challengers
C.H. Robinson Worldwide Inc. reported fourth-quarter 2020 revenues which climbed 5.9% higher than a year earlier on the strength of higher pricing and volumes in ocean and air services which led global forwarding revenues 71.7% higher. The company has also noted that "freight markets remain tight, and we anticipate this will continue for much of 2021."
U.S. seaborne imports handled by C.H. Robinson climbed 32.2% higher year over year in the first three weeks of January, including a 48.9% surge in volumes shipped from Europe. CEO Bob Biesterfeld has stated that the company expects "to see continued productivity benefits as well as growth with both customers and carriers that prefer to operate in a truly frictionless environment."
Investment in technology will continue to be necessary to keep the company ahead of digital-first forwarders including Flexport Inc. and Amazon.com Inc., whose volumes climbed 45.5% and 48.8% higher, respectively, in the first three weeks of January.
(Panjiva Research - Logistics)
EU lights touch paper for another round of medical protectionism
The European Commission has implemented export authorization measures for SARS-CoV-2 vaccines, covering drugs bought under the Accelerated Purchase Program. That follows a delay in ramping up shipments from AstraZeneca PLC even as the company's U.K. plant ran as expected. While the measure is not an export ban per se, it is likely to drive a new round of medical protectionism.
The U.S. and China accounted for 44.5% and 11.1%, respectively, of the EU's vaccine exports in the 12 months to Oct. 31, 2020. Exports of vaccines to the U.K., mostly linked to seasonal flu, declined by 61.6% year over year in the three months to Oct. 31 last year.
An early casualty could in theory be Belgian exports of Pfizer Inc.'s vaccine to the U.K., though commission President Ursula von der Leyen has stated that is not planned. The EU, U.S. and U.K. can likely supply their own vaccine requirements. Protectionism is more likely to hurt emerging markets.
Mexico could be in a difficult position given the EU represented 57.0% of its vaccine product imports in the 12 months to Nov. 30, 2020, led by shipments linked to Sanofi and Pfizer, while the U.S. accounted for a further 10.0% and India 27.7%.
(Panjiva Research - Healthcare)
Vietnam joins pressure on container lines to address soaring rates
The Vietnamese government will launch a probe into elevated container shipping rates, which have caused "difficulties for businesses, increasing transportation and storage costs, affecting production and distribution of goods." That joins probes, investigations and new legislation in China, India, South Korea and the U.S.
Vietnamese exporters have seen a surge in shipments to the U.S. in the past two years that has started to slow. U.S. seaborne imports from Vietnamese ports climbed 11.9% year over year in the fourth quarter of 2020. The top four liners accounted for 50.0% of traffic in the period. The largest was Ocean Network Express Pte. Ltd. with 17.5% of traffic after 8.1% year-over-year growth, followed by CMA CGM SA with 13.3% of the total and Cosco Shipping Holdings Co. Ltd. at 13.2%.
(Panjiva Research - Logistics)
IRobot takes action against SharkNinja as cleaner trade soars
IRobot Corp. has filed a patent infringement case at the U.S. International Trade Commission regarding JS Global Lifestyle Company Ltd.'s SharkNinja robotic vacuum cleaners. If the ITC rules in iRobot's favor, that could restrict U.S. imports of SharkNinja products.
Demand for vacuum cleaners has soared during the pandemic, with U.S. seaborne imports of cleaners up by 102.8% year over year in December 2020. Shipments linked to iRobot climbed 55.0% year over year in the fourth quarter last year, while SharkNinja's had already been in decline with a 9.7% slide over the same period.
IRobot has also seen slower growth than traditional and workshop manufacturers BISSELL Homecare Inc. and Stanley Black & Decker Inc., whose shipments climbed 70.4% and 220.5% higher, respectively.
(Panjiva Research - Consumer Discretionary)
USTR sets the tone; UPS, Maersk report – February events calendar
This report is the first edition of Panjiva's monthly calendar of forthcoming events ranging across trade policy and economic releases to logistics and industrial supply chain data.
February could see the start of improving U.S.-EU relations with deadlines for adjustments of the aerospace-related tariffs on imports from the EU as well as a report being due on new U.S. President Joe Biden's trade agenda. Aircraft-related exports to the EU have fallen significantly and were down by 43.4% year over year in the three months to Nov. 30, 2020. That was 8.2 percentage points worse than imports fell in the same period. Improved relations and bilateral tariff reductions could help U.S. companies including Boeing Co.
Other topics that could be in the report from the U.S. Trade Representative include deferred tariff decisions regarding Vietnam's alleged currency manipulation and digital services taxes as well as standing tariffs on imports of steel, aluminum, solar panels, washing machines and the Section 301 duties on shipments from China that were part of the Trump administration's trade war.
The fourth-quarter 2020 earnings reporting season will provide a review of performance during a quarter that saw soaring demand and shipping rates as well as an indication of what the future might hold from United Parcel Service Inc. and A.P. Møller - Mærsk A/S, among others. U.S. seaborne imports handled by the companies rose by 24.7% and 39.9% year over year, respectively, in the period.
Christopher Rogers and Eric Oak are researchers at Panjiva, a business line of S&P Global Market Intelligence, a division of S&P Global Inc. This content does not constitute investment advice, and the views and opinions expressed in this piece are those of the author and do not necessarily represent the views of S&P Global Market Intelligence.
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