Migrants found hiding in cargo shipments 🥷🏽 + Russia turns to crypto for China trade 💱

TRADE NEWS

Russia Turns to Crypto for China Trade

Amid international sanctions affecting Russia's global trade, Russian commodity companies are increasingly adopting stablecoins like Tether (USDT) for cross-border transactions, particularly with Chinese businesses. This move towards digital currencies arises from the difficulties experienced through conventional banking channels, which face the risk of additional sanctions by the US Treasury Department.

Russian entities, especially in the metals and timber sectors, are using stablecoins to bypass challenges such as frozen overseas accounts, ensuring faster and more cost-efficient transfers despite tightened compliance and sanctions. Stablecoins are proving crucial in maintaining business operations by enabling swift transactions that can be completed in seconds and at minimal costs.

This trend is part of a broader change in Russia’s regulatory approach towards cryptocurrencies. Previously skeptical, the Russian central bank is now trialing crypto payments for international dealings, as confirmed by Governor Elvira Nabiullina in November, reflecting a significant shift in policy.

Furthermore, Russian legislators are working on laws to provide a legal framework for using stablecoins in international transactions, formally acknowledging the role of cryptocurrencies in overcoming financial obstacles. This change is underscored by a notable increase in cryptocurrency activities among Russians, indicating a growing acceptance of digital currencies within the national economy.

Russian banks are also expanding their cryptocurrency services, with institutions like Rosbank initiating cross-border crypto payments for businesses. Similar to Russia, other sanctioned nations such as Venezuela are also leveraging Tether for international transactions, highlighting a global trend in the adoption of stablecoins for trade under economic constraints.

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VIDEO OF THE WEEK

How China & Mexico Out Manoeuvred America

Mexico has recently surpassed China as the leading exporter to the US due to Chinese companies relocating manufacturing to Mexico to circumvent US tariffs. These strategic moves have been motivated by lower labor costs and favorable trade conditions under NAFTA, positioning Mexico as a significant hub for exporting to the US while avoiding hefty tariffs.

GLOBAL TRADE SNIPPETS

EU Commission fines Oreo maker $337.5 million for blocking cross-border sales. The Commission said Mondelez tried to avoid cross-border trade because that could lead to lower prices. It said this harmed consumers who end up paying more for chocolate, biscuits and coffee.

Some shipping container costs hit $10,000. Companies transporting goods from Asia face costs of as much as $10,000 for an urgent full-size shipping container over the next month — about double current spot rates, according to prices circulating between carriers and importers.

Thai cabinet approves Brics membership bid. Egypt, Ethiopia, Iran and the United Arab Emirates officially joined the Brics bloc on January 1st 2024. Thailand is currently in the next queue of 15 countries being considered for admission.

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FREIGHT NEWS

Migrant Stowaways Stop Dublin Cargo Shipments

Dublin-based Hyland Shipping has announced a temporary halt to accepting freight shipments from the French port of Cherbourg following a series of incidents involving stowaway migrants causing damage to cargo and lorries. The decision comes after a troubling week where the company received 90 loads through Cherbourg, with nine found to have suffered significant damage.

The company revealed that migrants have been gaining access to the lorries by cutting through the roofs or sides of the trailers. Once inside, they attempt to hide by displacing and damaging the cargo, which often results in costly damages to the goods and the vehicles. In one particular incident, six migrants were discovered inside a lorry when it was opened for unloading at Hyland Shipping's Dublin warehouse.

Security footage from the lorries indicates that the stowaways may be moving between trailers while aboard ferries, including into refrigerated units. The latter poses a grave risk as these units are unsuitable for human occupancy during the lengthy 20-hour ferry journey due to the cold temperatures.

In light of these events, Hyland Shipping has opted to reroute its freight away from Cherbourg to alternative ports. This change is not without its drawbacks, as it has led to increased operational costs and delays in the supply chain. The company emphasized that it will not resume using the Cherbourg route until it receives assurances that security at the port has been significantly enhanced.

The issue has caught the attention of the broader logistics community, prompting calls for better security measures at ports frequented by international freight companies. Footage here

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