News

June Digest, 2024

⦁ Research organization Fitch Solutions has published an article on infrastructure alternatives amid red sea trade disruptions, noting that there is potential for increased investment in alternative land corridors. According to the article, alternative routes between Southeast Asia and Europe via Central Asia, the so-called Including the Middle Corridor continues to attract the attention of politicians in and around the region.

⦁ Annual regional forum of Caucasus-Central Asia-Afghanistan-Mongolia (CAMCA) was held in the capital of Kyrgyzstan, Bishkek. Within the framework of the forum, under the leadership of Dr. Frederic Starr, the expert of the American Foreign Policy Council (AFPC) and the chairman of the Central Asia-Caucasus Institute (CACI), a panel discussion was held on the topic - "Large Trans-Caspian Infrastructure Projects."

⦁ The conference on the "Middle Corridor" project was held in London on June 11. The event was organized by the Caspian Policy Center (CPC). The conference was held in Great Britain with the participation of the ambassadors of Azerbaijan, Kazakhstan, Georgia, Armenia, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Turkey. The event began with welcoming words from CPC President Afgan Nifti, who noted that "the Caspian region is a hidden gem full of potential, especially for international trade."

⦁ Increasing the level of digitization in the era of information technology is an urgent necessity. With the help of Singapore's Global DTC, a platform was created, the idea of which is that shippers, who are, for example, in Southeast Asia, should be able to download an application on a computer or phone. With its help, they monitor the logistic processes. This solution will simplify the communication between the participants of the corridor and allow access to the cargo during transportation. The launch of the platform is expected by the end of the year.

⦁ Turkey increased the cost of passage through the Bosphorus and Dardanelles by almost 15%. Until now, the fee was $4.42, and from July 1, it will be $5.07. As for larger ships, before 2022 a 10,000-ton cargo ship paid a total of $3,240 in transit, taking into account the new transit rates, such a ship will have to pay $20,370.

⦁ According to Drewry's, the global container index for a 40-foot container rose to $5,117 and is at a record high. The shipping rate has increased by 233% annually. The Red Sea crisis and disrupted supply chains are again putting pressure on prices.

⦁ According to the data of the second quarter of 2024, the positions of the Black Sea basin countries in the Liner Shipping Connectivity Index (LSCI) are as follows: Turkey - 18th place, Russia - 32nd place, Romania - 81st place, Bulgaria - 108th place, Ukraine - 158th place (62nd place before the war), Georgia - 119th place. The index covers more than 180 countries and shows a country's level of integration with the global shipping network.

⦁ Most of the economists polled by the PMC research center in June would like a company with a better international reputation to participate in the Anaklia port project. This is stated in the second quarter edition of "Economic Climate of Georgia" published by the Center.

⦁ Asia's largest low-cost airline IndiGo is increasing the number of regular direct flights to Georgia. From August 16, the airline will operate flights on the New Delhi-Tbilisi-New Delhi air route daily instead of three times a week. The airline performs an average of 1900 flights per day to more than 600 destinations around the world. The airline currently owns 324 aircraft.

Source: europetime.eu; bp.ge; bm.ge; commersant.ge

TRACECA.GE