Baltimore’s Key Bridge collapse may impact US supply chains

Last week, a massive cargo ship lost power and rammed into Baltimore’s iconic Francis Scott Key Bridge, causing part of the bridge to collapse into the Patapsco River, as was reported by CBS News.

The collapse of the bridge has led to the suspension of vessel traffic at the Port of Baltimore, considered one of the busiest harbour’s in the US for automobiles, heavy machinery, coal, forest products, farm equipment, and sugar, until further notice.

In 2023, the Port of Baltimore handled 52.3 million tons of foreign cargo worth US$80 billion, according to the state of Maryland.

Recent events, such as Houthi attacks on ships in the Red Sea and disruptions linked to the Panama Canal, have inflicted strain on supply chains. Consequently, companies relying on East Coast ports are experiencing prolonged delivery schedules and increased costs.

The interruption of maritime operations at the Port of Baltimore may add an additional layer of strain for trade in the region.

“Supply chain experts say it will take some time, and there will be disruption, but automakers and shipping companies will divert their cargo to ports up and down the East Coast”, the Associated Press (AP) News reported recently.

Furthermore, the economic cost of Baltimore’s bridge collapse will add up. During a briefing at the bridge collapse scene, the US Representative for Maryland, David Trone, observed that state and federal officials estimated the port’s closure would cost the economy as much as $15 million per day.

US President Joe Biden has said it will take "some time" to rebuild the Francis Scott Key Bridge and wants the federal government to pay for the reconstruction of the Baltimore bridge. He expects the US Congress to support his effort.

 

Mastercard scales Click to Pay to tackle online payment fraud in Australia

In response to the growing menace of card-not-present fraud, which resulted in Australians losing AU$608.1 million in 2023, as per AusPayNet data, Mastercard has initiated the expansion of its new tokenized and embedded online checkout experience. This innovative approach not only bolsters security for online transactions but also preserves the convenience that consumers have grown accustomed to with contactless payments in brick-and-mortar stores.

Mastercard Click to Pay, built on industry standards to ensure widespread availability, promises a streamlined and secure checkout experience by obviating the need for manual input of payment card details. Instead, it utilises automatic email lookup and two-factor authentication, enabling cardholders to instantly access their available cards upon reaching the checkout. Subsequently, their bank securely transmits payment credentials to the retailer, enhancing both convenience and security.

Supported by most debit and credit cards available in Australia, enrollment in Click to Pay is easily accessible to cardholders through the Mastercard website. Anticipating the addition of millions of cards before the end of 2024, this initiative underscores its commitment to widespread adoption and ease of use.

“With online shopping now the norm, Aussies are becoming more mindful of how and where they share their payment details. It's a bit like handing over your house key every time you enter your card info, and when you shop at multiple sites, it's like leaving copies of your key all over the Internet with no real way to keep track of who has them, or how to get them back,” said Richard Wormald, division president, Australasia, Mastercard.

 “With payment credentials securely held, managed and shared by one of the most trusted institutions in people’s lives, their bank, Mastercard Click to Pay sets the new standard for secure and seamless online transactions. By replacing card details with a secure token, cardholders no longer need to share their front door key, giving them far more control over who they let into their house, and who can come back in the future,” added Wormald.

Mastercard has also forged a partnership with Worldpay with the aim of mitigating chargebacks by offering its merchants its Ethoca Alerts solution. This solution serves to provides an early warning system to merchants that helps prevent disputes from becoming a chargeback, thereby mitigating potential financial losses attributable to fraudulent activities.

 

AT&T confirms massive data breach affecting 73 million customers

US telecommunications giant AT&T  revealed over the weekend that a significant data breach has been uncovered, involving the theft of sensitive information belonging to millions of its current and former customers.

In a statement released on Saturday addressing the breach, AT&T disclosed that a dataset discovered on the "dark web" contains a range of information, including some Social Security numbers and passcodes. The compromised data pertains to approximately 7.6 million current account holders and 65.4 million former account holders.

Following the incident, AT&T has launched an investigation and also commenced the process of notifying customers whose personal information was compromised.

 

China’s manufacturing activity expands for first time in six months

China’s factory activity saw its first expansion in six months, an official factory survey showed on Sunday. This development offers some relief to the world’s second largest economy’s policymakers, despite the ongoing crisis in the Chinese property sector, which continues to weigh on the economy and overall confidence.

The manufacturing purchasing managers’ index, as per the National Bureau of Statistics' announcement on Sunday, stood at 50.8 points in March, representing a notable improvement from February's 49.1 and reaching its highest level in twelve months. This rise was fueled by an increase in export orders. Any reading above 50 indicates expansion compared to the previous month.

Earlier last month, China’s Premier Li Qiang announced an ambitious economic growth of about 5% for 2024.

“But the NBS warned that further state support for industry was needed, with companies suffering from “insufficient market demand”, underlining worries among China’s trading partners that industrial overcapacity could spill over into export markets”, reported the Financial Times in an article published yesterday.

 

India’s GDP expected to grow 8% or more in Jan-March quarter, finance minister says

India’s Finance Minister Nirmala Sitharaman on Saturday said that the country’s gross domestic product (GDP) is set to grow by 8% or more in the quarter ending March 31.

She also projected a similar year-on-year growth rate for the 2023/24 financial year, attributing it to improved inflation management and macroeconomic stability.

India's GDP data for the Jan-March quarter is slated for release on May 31.

The world’s third-largest economy, India, grew 8.4% in the October-December quarter, outpacing the 7.6% growth recorded for the previous quarter.

Canada’s economy grows stronger than expected

The Canadian economy kicked off the new year with strong momentum, experiencing growth in the early months that has surpassed the Bank of Canada's (BoC) initial forecast.

According to Statistics Canada, the Canadian economy grew 0.6% in January, marking its fastest growth rate in a year, while the economy likely continued its upward trajectory with an estimated growth of 0.4% in February.

Statistics Canada noted that January 2024’s rise, the swiftest since the 0.7 percent growth observed in January 2023, was facilitated by a revival in educational services following the resolution of public sector strikes in Quebec.

The month of January also brought about a revival for Canadian manufacturers and utilities, thanks to a sudden temperature dip in the mid-month period, which led to increased demand particularly in in Western Canada.

Since July 2023, the BoC has held its key policy rate at a 22-year high of five percent. However, in March, the BoC governors agreed that conditions favouring rate cuts may arise this year if the Canadian economy aligns with their projections.

The BoC forecasted a growth rate of 0.5% for the first quarter back in January, and recent data confirms that the Canadian economy remains on track for modest growth in the first three months of 2024. New projections from the BoC will accompany its rate announcement on April 10.