Israel- Hamas conflict cripples trade plans 🌍

INNOVATION NEWS

Autonomous Cargo Plane. The Future of Air Freight?

Shipping goods across vast distances often comes down to a simple decision for companies: speed or cost? Ocean freight, although more affordable, can take weeks. On the other hand, air freight offers speed but is expensive, limited in capacity, and has a larger carbon footprint.

Enter Droneliner, a UK aerospace startup with a groundbreaking proposal. They've introduced an autonomous cargo plane design that promises to reduce air freight costs by over 70%, potentially bridging the cost gap between air and ocean freight. This dramatic price cut results from a concoction of factors: heightened fuel efficiency, slashed operating costs, an efficient loading system, and an impressive payload capacity.

Unique to Droneliner's design is the plane's rectangular shape with smoothed corners, optimized for transporting standard-sized shipping containers, reducing wasted space. They've proposed two models: the DL200, holding 40 lightweight containers (made of plastic and vinyl, weighing 80% less than their metal counterparts) with a 200-ton payload, and the DL350, accommodating 70 containers with a 350-ton payload. These figures dwarf the Boeing 747-8's 137-ton capacity.

Autonomy brings additional advantages. Without a need for a cockpit, both ends of the plane can open for more efficient loading and unloading. The absence of crew also negates pressurization requirements, cutting weight and costs further. To navigate initial safety concerns of flying sans pilot, Droneliner contemplates using retired military airfields away from dense populations.

However, challenges remain. While the design exists, actual construction and regulatory approval loom large. Droneliner's design director, Mike Debens, approximated a $10 billion investment to transition from design to production, a sum yet to be sourced. But with an advisory board boasting aerospace industry veterans, including those from Airbus and Rolls Royce, the future looks promising for Droneliner's ambitious vision.

VIDEO OF THE WEEK

How the U.S. is Investing Billions to Compete With China’s Lithium Supply Chain

The U.S. used to be a global leader in lithium processing, but it lost its market control to China in the early 2000s. Since then, China has developed its own lithium supply chain, controlling 55% of the market. Now, the U.S. is trying to secure its own supply in a race for independence.

TRADE NEWS

The West’s Answer to China’s Belt Road Comes to a Halt With Hamas-Israel Conflict

In the ever-evolving landscape of global trade, new corridors emerge, promising to reshape the dynamics of international commerce. One such ambitious venture is the India-Middle East-Europe Economic Corridor (IMEC). Recently championed at the G20 summit in New Delhi, the IMEC is viewed as the West's answer to China's Belt and Road initiative. With the potential to revolutionize trade routes involving railways, ports, and green energy, the IMEC has garnered significant attention and support from world leaders. See video of IMEC details here.

U.S. President Joe Biden, European Commission President Ursula von der Leyen, and Indian Prime Minister Narendra Modi have all lauded the IMEC's potential. Their collective vision paints a picture of a corridor that could potentially reduce shipping times by a staggering 40%. This is not just a theoretical projection; trade statistics underscore the IMEC's promise. For instance, India's trade relationship with Saudi Arabia has flourished, more than doubling in just two years to an impressive $53 billion in 2023.

However, the path to realizing the IMEC's full potential is fraught with challenges. Central to the IMEC's success is the establishment of a reliable trade link between Saudi Arabia and Israel. This weeks conflict with Hamas attacking Israel has all but put the development within the region on pause. The geopolitical tensions make it increasingly complex for key players, like Saudi Crown Prince Mohammed bin Salman, to forge diplomatic ties with Israel.

In these turbulent times, traditional trade routes like the Suez Canal remain vital. Yet, the vision of the IMEC, a corridor bridging India, the Middle East, and Europe, remains a beacon of hope for the future of global trade.

SHIPWRECK OF THE WEEK ⚓️☠️ 

GLOBAL TRADE SNIPPETS

US Alarmed by China's Big Steps in Latin America: The United States is worried about China's growing geopolitical clout in Latin America and has pressed Peru to rethink major Chinese stakes in its critical infrastructure.

Non-Western foreign retail brands pour into the Russian market as retail figures jump more than 10%: The number of foreign brands that have registered in Russia this year has soared, defying sanctions aimed at discouraging business engagement in the country.

Israel, ports and shipping lines still operating but traffic slows amongst Hamas conflict: Activity at Israel's ports is slowing after Saturday's attacks by Islamist group Hamas on towns close to Gaza, with the cost of insurance premiums for Israeli shipments soaring.

Malaysia is aggressively pursuing de-dollarization efforts and will be pushing their local currency "Ringgit" for the global transactions: The prime minister said the country cannot entirely stop transacting in the US dollar but will aggressively push the Ringgit forward.

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