35% of ports say demand for food, medical supplies storage has increased
As the demand for medical supplies and food across the world has increased, the demand for storage of these items has subsequently also increased. A survey of 90 global ports conducted by the World Ports Sustainability Program (WPSP) has found that at 35% of these ports, the coronavirus outbreak and response efforts has led to an increased demand for warehouse storage for food and medical supplies.
While some ports are managing increased imports and stockpiling of essential goods, others are adjusting to a decrease in storage utilization for conventional cargo, according to the survey. “As storage increases, ports are now looking to provide additional storage facilities in and around port areas,” according to a spokesperson for WPSP. “This may include land used for other purposes or in cooperation with the private sector to improve cargo flows.”
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H&M tops 2020 fashion transparency index
The H&M group, C&A, Adidas/Reebok, Esprit, Marks and Spencer and Patagonia are the world’s most transparent major fashion brands, according to the 2020 fashion transparency index from the campaign group Fashion Revolution. The annual report ranks how transparent companies are about social and environmental policies, processes and effects within their operations and supply chains. This year’s most improved brands included Monsoon, Zegna, and Sainsbury’s Tu with more brands than ever disclosing information about their suppliers.
Transparency should not be confused with how ethical or sustainable the brands are, with Sarah Ditty, the policy director at Fashion Revolution, noting that there are obvious “elephant in the room issues” about some of the top performers, including “producing too much” and not doing enough to improve workers’ low wages. However, Ditty also adds that consumers should take heart from the fact that “some brands really are taking some significant steps” to become more transparent.
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Oil Traders Are Scrambling to Book Tankers for Storage
U.S. crude-oil futures dropped below zero for the first time ever on Monday. This is a reflection of the dwindling capacity for storing crude and oil demand tumbling because economies around the world are locked down to slow the spread of the coronavirus. As a result, the growing surplus of oil on world markets has led to traders racing to find supertankers to use for storage, pushing rates for the mammoth vessels sharply higher even as prices for crude oil continue to plummet.
According to Robert Hvide Macleod, chief executive of Norway-based Frontline Management AS, one of the world’s biggest tanker owners, average daily freight rates for VLCCs are hovering at around $150,000, compared with average rates of about $10,000 a day in April 2019. This is because he said, “the world is oversupplied, and oil basically only has one place to go when land based is full and that is tankers”.
Figures from maritime data provider, Kpler, show that total floating oil storage hit 150 million barrels this week, up 23 million barrels from last week. This is because traders are buying up tanker space are betting that reduced output and a potential reopening of economies in the coming months will give them an upper hand in a market rebound.
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Have a great and safe weekend!