China Denounces U.S. Probe into Shipbuilding Industry as Unfair Accusation

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Global Logistics, Global Trade Daily, News

China Denounces U.S. Probe into Shipbuilding Industry as Unfair Accusation

April 19th, 2024 Tim Jay Leave a comment

Chinese authorities have strongly criticized the United States’ recent investigation into China’s shipbuilding industry, labeling it as a misguided move. In response to the probe initiated by the Office of the U.S. Trade Representative, China’s Ministry of Commerce issued a statement condemning the allegations of “unfair, non-market policies and practices” as baseless.

According to the Chinese ministry, while the U.S. accuses China of employing so-called ‘non-market practices,’ it overlooks its own extensive subsidies to domestic industries, which amount to hundreds of billions of dollars. China asserts that its industrial development is the result of technological innovation and fair competition within the market.

The initiation of the investigation under Section 301 of the Trade Act of 1974, which addresses unfair foreign government practices affecting U.S. commerce, has been met with strong opposition from Beijing. The Chinese ministry criticized the move as compounding a previous mistake and urged the U.S. to adhere to multilateral rules.

The investigation follows a petition by five national labor unions urging the U.S. to examine China’s maritime, logistics, and shipbuilding sectors. U.S. Trade Representative Ambassador Katherine Tai has pledged a comprehensive investigation into the concerns raised by the unions, citing China’s alleged use of non-market policies to dominate various sectors.

President Joe Biden’s administration has also taken steps to protect American industries, including proposing a tripling of tariffs on Chinese steel and aluminum imports. The White House argues that Chinese subsidies create unfair competition by offering artificially low-priced alternatives, which undermine high-quality U.S. products.

As tensions between the two economic powerhouses continue to escalate, the outcome of the investigation and subsequent actions taken by both parties will likely have far-reaching implications for global trade relations.

Global Logistics, Global Trade Daily, International Trade, News, Ocean Ports, War

Iran Tensions’ Global Trade Impact Revealed by Seized Ship Cargo

April 19th, 2024 Tim Jay Leave a comment

The ship MSC Aries recently made headlines after being seized by Iran’s Islamic Revolutionary Guard Corps near the Strait of Hormuz, sparking concerns about the impact on global trade. The vessel’s detention underscores the potential disruptions faced by supply chains amid heightened tensions in the Middle East.

As of now, the fate of the ship and its crew remains uncertain, with conflicting reports regarding the reason for its seizure. While Iran claims the ship violated maritime regulations, analysts suggest that its Israeli ownership connection may have been a motivating factor.

The diverse nationalities of the crew, including sailors from India and Russia, further complicate efforts to resolve the situation diplomatically. This incident, occurring alongside geopolitical tensions, raises fears of broader conflict in the region, which could disrupt vital trade routes.

The Strait of Hormuz, a crucial passage for global trade, poses particular challenges for container vessels like the MSC Aries. Although oil tankers would bear the brunt of any disruptions, container ships also play a significant role in maintaining supply chains for global manufacturers.

An analysis of the ship’s cargo, provided by Vizion and Dun & Bradstreet, offers insight into the potential economic impact of its detention. The cargo, valued at $174 million, includes a variety of goods destined for nearly 60 countries, with notable recipients including the United States, Turkey, Belgium, and Italy.

Of particular concern are the intermediate goods onboard, such as chemicals and electronic components, essential for various industries. The complexity of modern supply chains means that disruptions like this can have far-reaching consequences for businesses worldwide.

The incident underscores the need for companies to better understand and manage their supply chain routes, mitigate risks, and plan for contingencies. As geopolitical tensions continue to simmer, businesses must navigate an increasingly complex landscape to ensure the smooth flow of goods and minimize disruptions.

Global Logistics, Global Trade Daily, Technology, Warehousing

Innovating Warehouse Efficiency: Gather AI Introduces Drone-Powered Inventory Solutions

April 18th, 2024 Tim Jay Leave a comment

Gather AI, renowned for its computer vision-based AI solutions for warehouse inventory monitoring, unveils two groundbreaking capabilities: inferred case counting and location occupancy. These pioneering features empower warehouses with automated, digitized inventory counts and precise space utilization insights, promising improved shipment efficiency and reduced labor costs associated with manual counting.

Ensuring accurate inventory levels is paramount for warehouse operators to meet shipping deadlines and optimize storage space. However, manual counting methods are not only labor-intensive but also prone to inaccuracies, exacerbating logistical challenges. According to the Warehousing Education & Research Council (WERC) 2023 DC Measures Annual Survey & Report, the average warehouse achieves shipping deadlines only 96% of the time, with a cube utilization of 81%.

Gather AI’s solution revolutionizes this process, enabling warehouses to scan up to 900 pallets per hour using drones equipped with advanced computer vision technology. By capturing images of each location, the AI swiftly analyzes multiple barcodes and text, identifying empty spaces and providing inferred case counts for both full and partial pallets. This real-time data, accessible through the customer web dashboard, streamlines inventory management and facilitates space optimization, mitigating the need for manual cycle counting and minimizing the risk of missed shipments.

AJ Raaker, Director Of Warehouse Development at Taylor Logistics Inc., attests to the efficiency gains achieved with Gather AI’s solution, stating that inferred case counting is 87% more efficient than traditional physical cycle counting methods. This efficiency boost enables teams to focus on revenue-generating activities while ensuring inventory accuracy.

The newly introduced capabilities further enhance operational efficiency:

– Inferred Case Count: Warehouse operators can reduce manual counting time by 90% by leveraging computer vision and AI to estimate case counts on pallets. Pallets with low case counts are flagged for replenishment, preventing stockouts and missed shipments. Labor can be prioritized by focusing on pallets deviating from the WMS expectations.

– Location Occupancy: Warehouse operators gain insights into space utilization, identifying opportunities for pallet consolidation and maximizing fixed expense efficiency. Computer vision technology measures available space on pallets, pinpointing consolidation opportunities to optimize storage.

Sankalp Arora, Ph.D., CEO, and Co-Founder of Gather AI, underscores the company’s commitment to delivering real-time inventory insights to warehouse operators. By harnessing computer vision and AI capabilities, Gather AI aims to alleviate labor-intensive tasks and provide unparalleled inventory visibility, empowering warehouses to operate more efficiently and effectively.

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Global Logistics, Global Trade Daily, International Trade, News

Resurgence in Manufacturing Boosts Transport and Logistics Sector

April 18th, 2024 Tim Jay Leave a comment

The transport and logistics sector has experienced a notable uptick in transaction volumes, reaching its highest levels in nine months, fueled by a resurgence in order volumes across the manufacturing sector.

Tradeshift’s Q1 Index of Global Trade Health reveals that activity levels within the T&L sector rose to within two points below the expected range in Q1, marking a significant improvement from tracking six points below that level over the previous two quarters. Meanwhile, demand signals in the manufacturing sector climbed to just one point below expectations, with new orders surpassing expectations by one point.

Across the Tradeshift network, total trade activity saw a one-point improvement compared to the previous quarter, although it remained three points below the anticipated range in Q1. Despite this being the ninth consecutive quarter of growth below expectations, it also signifies the third consecutive quarter of upward momentum following a period of sluggish activity.

Key highlights from the report include:

– China’s resurgence: Trade activity in China experienced a notable uptick, with transaction volumes growing by two points above the expected level, marking the highest rate in over two and a half years.- Momentum in the US: The US continued its momentum in Q1, with trade activity tracking one point above the baseline. Order volumes surged by an impressive seven points above expectations, building on the growth seen in the previous quarter.

– Eurozone improvement: Activity levels in the Eurozone improved to three points below the baseline in Q1, a significant turnaround from sinking as low as nine points below that level just six months earlier. New orders grew by six points above anticipated levels.

– UK struggles: While UK trade activity showed improvement, it remained four points below the expected level in Q1, with sluggish order volumes tracking five points below expectations.

James Stirk, CEO of Tradeshift, commented, “We’re witnessing consecutive quarters of robust order volume growth for the first time in two years, with the exception of the UK. While demand levels are on the path to recovery, normalization is still on the horizon. Short-to-medium-term recovery is likely to be fragile, with geopolitical uncertainty adding complexity.”

Despite the positive outlook, liquidity challenges persist for suppliers, potentially hindering supply chain activities. Although invoice payment times have decreased since their peak in Q3 2022, suppliers still face a 6% longer wait compared to pre-pandemic times.

Stirk added, “Cash flow is vital for supply chains, and many suppliers are running on empty after two challenging years. The longer payment delays persist, the greater the risk that an influx of new orders outpaces available working capital.”

A forthcoming joint venture between Tradeshift and HSBC aims to address these challenges by facilitating access to working capital through innovative financial services, including data-driven invoice financing.

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3pls, Global Logistics, Global Trade Daily, International Trade, War

The Impact of Middle East Unrest on Global Logistics

April 18th, 2024 Tim Jay Leave a comment

The recent escalation of tensions in the Middle East has sent shockwaves through the global logistics sector, raising concerns about the safety and stability of both sea and air freight transport in the region. Beyond container cargoes, various types of cargo are now under threat, amplifying the challenges faced by the industry.

A significant incident occurred when the MSC Aries, a vessel with a capacity of 14,300 TEUs flagged in Madeira, fell victim to an attack by Iranian troops who landed via helicopter onboard the vessel. This assault occurred as the MSC Aries was departing from the port of Dubai, indicating vulnerabilities in the logistics infrastructure not only of the UAE but also of the broader Gulf region. The vessel’s affiliation with Israeli businessman Eyal Ofer’s Zodiac Group has been highlighted in media reports, suggesting a targeted attack due to these links.

The situation has not only affected maritime routes but has also impacted air travel, with several airlines cancelling services to Israel, Lebanon, and Tehran due to the conflict between Israel and Iran. While UAE authorities and Gulf-based airlines assert the security of air operations, the overall sentiment remains affected.

Looking ahead in the short and medium term, the conflict’s repercussions on the logistics sector are significant but complex. Potential impacts include fluctuations in pricing, with disruptions to ports in the UAE potentially driving short-term rates higher. Additionally, cargo volumes passing through the Suez Canal may further decline, especially if disruptions spread to energy cargoes. The threat to ports in the Gulf, particularly from Iranian actions in the Strait of Hormuz, adds to the uncertainty.

Oil cargoes may also face challenges, with a potential return to the ‘Tanker Wars’ of the 1980s if the situation escalates further. Moreover, disruptions in the Gulf could impact airfreight operations, affecting supply chains globally. India, in particular, is vulnerable to disturbances in the region, given its proximity and reliance on trade routes through the Middle East.

The crisis remains highly unpredictable, with possible outcomes ranging from de-escalation to further escalation. The involvement of shipping and airfreight in the conflict necessitates the creation of short-term alternatives to mitigate risks, such as the utilization of the ‘Cape route.’ However, these measures may come at a high price in the immediate future, highlighting the challenges faced by the global logistics sector in navigating through this turbulent period.

Global Logistics, Technology, Trucking

Top Markets and Trending Segments for Truck-Mounted Cranes

April 18th, 2024 Jayesh Kamble Leave a comment

Truck-mounted cranes are cranes mounted on top of trucks. These cranes are attached to the rear side of the trucks and used to load and unload the goods or to move heavy equipment or materials.

Truck-mounted cranes require less space and are portable. They also don’t need support structures and can be transported from one industrial plant to another very easily. They can rotate in 360 degrees carrying goods from every corner. Also, they reduce the running costs. They provide better flexibility and reliability as compared to the immobile cranes supported by structures.

Truck-mounted cranes are available in several drives like electrical, hydraulic, and mechanical. According to the Consegic Business Intelligence report on the Truck-Mounted Cranes Market, in 2022, electric truck-mounted cranes held the largest market share at about 47.21%. Electric truck-mounted cranes are recommended by industry experts, as they are more efficient to fuel truck-mounted cranes, and also are more efficient and emission-free. Hydraulic truck-mounted crane is expected to have the fastest growth in the upcoming decade. These cranes use hydraulic power to lift and release materials or objects.

Truck-mounted cranes also vary by capacity ranging from below 15 tons to above 50 tons. Different capacity cranes are used for different purposes. The 15-30 ton cranes are a popular choice as they are more portable, flexible, stable, and can be transported easily. There is an increase in demand for high-capacity cranes for construction, and cargo handling purposes so the demand for 30-50 ton cranes is expected to rise in the next few years.

Truck-mounted cranes are used in various industries like agriculture, construction, cargo handling, and electric line maintenance. With the integration of advanced technologies like IOT (Internet of Things) or engines with low carbon emission, truck-mounted cranes are expected to have a CAGR of 5.5% from 2022 to 2030.

Truck-mounted cranes have the largest revenue from North America in 2022 valued at USD 3,732.96 Million and are expected to show a stupendous growth of 5.6% CAGR in the upcoming years. The need for truck-mounted cranes in North America for logistics, construction, cargo handling, etc. has increased demand. The industrial growth in these regions along with the growth in international trade has pushed further the demand for truck-mounted cranes. Asia Pacific region is predicted to have the fastest CAGR of 5.9% in the upcoming decade surpassing the North American region. The industrial growth and the economic boost in the Asia-Pacific region have boosted the growth and need for truck-mounted cranes. Even in this China alone holds the 27.1% market share in 2022. Countries like India and China are focusing on construction and development projects, also the huge population and availability of the raw materials in these regions is another cause for a higher demand for truck-mounted cranes.

The high manufacturing costs for truck-mounted cranes can be obstacles in the path of the growing demand. But by using efficient and advanced technologies the production and running costs can be reduced. Truck-mounted cranes are growing in demand and are expected to see a whopping rise as the need for handling heavy materials and objects increases due to the increase in construction and developmental projects.

Author

Jayesh Kamble: I’m Jayesh Kamble, a Professional Content Writer at Consegic Business Intelligence, with expertise in the Machinery and Equipment Industry.

Source: Consegic Business Intelligence: Truck Mounted Crane Report

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Global Logistics, Global Trade Daily, News

Navigating the Global Supply Chain: Opportunities and Challenges for Middle Market Companies

April 17th, 2024 Tim Jay Leave a comment

Amidst the interconnected web of global commerce, middle market companies are strategically leveraging international supply chains to enhance competitiveness, despite encountering both advantages and obstacles along the way.

A newly released research report, a collaborative effort between the National Center for the Middle Market (NCMM) and the Center for International Business Education and Research (CIBER) at The Ohio State University Max M. Fisher College of Business, sheds light on the evolving landscape of global supply chain engagement among middle market firms.

Surveying 406 supply chain leaders from the middle market segment, the report unveils a robust presence of companies participating as buyers or sellers in global markets. Notably, 60% of respondents identified revenue growth as the top benefit for international sellers, while 72% of purchasers emphasized cost savings as the primary advantage of engaging in international supply chains.

The research also underscores the trend of expansion into new international markets, with one in five middle market companies venturing into foreign territories in 2023. Anticipating further growth, 45% of sellers and 37% of purchasers express intentions to expand their international supply chain footprint in 2024.

However, the journey into international supply chains is not without its challenges. Longer lead times emerged as a top concern for purchasers, while sellers grapple with quality control issues. Mitigating risks remains paramount, with insurance and diversified supplier bases being key strategies adopted by sellers and purchasers, respectively.

Despite these challenges, confidence in international supply chains remains high among middle market companies. Yet, a critical hurdle highlighted by the research is the shortage of domestic talent equipped with international supply chain expertise, emphasizing the need for language proficiency, cross-cultural awareness, and international competence among employees.

Professor Michael Knemeyer, a logistics expert and co-author of the report, emphasizes the necessity of investing in human capital to ensure the optimal functioning of international networks. Collaboration between academia and industry, as exemplified by the partnership between NCMM and Fisher’s CIBER, plays a pivotal role in addressing these challenges and promoting international business understanding and competitiveness.

The joint research underscores the significance of fostering a robust global supply chain ecosystem within the middle market segment, highlighting opportunities for growth and the imperative of overcoming operational hurdles to thrive in the interconnected global marketplace.

The research report can be found at http://www.middlemarketcenter.org.

3pls, Global Logistics, Global Trade Daily, News

Net Feasa Revolutionizes Supply Chain Visibility with Expanded Vessel Control Tower

April 17th, 2024 Tim Jay Leave a comment

Net Feasa, renowned for its groundbreaking vessel-based wireless connectivity solutions for shipping containers, has unveiled an expanded Vessel Control Tower aimed at revolutionizing supply chain visibility. The upgraded platform now supports all IoT-enabled cargo, catering to both reefer manufacturers and dry box tracking providers on a single platform.

This advancement ensures seamless connectivity across various vendors for all IoT-enabled reefer and dry containers, offering crucial early notifications of temperature anomalies and potential fire threats. The Vessel Control Tower also facilitates visibility and alerts from strategically positioned IoT sensors on the vessel, including heat sensors on car decks, enabling early detection of heat anomalies, especially pertinent amid the rising incidents of fires aboard car-carrying ships due to the EV export boom.

Access to comprehensive reefer and dry container information on a unified platform onboard enhances monitoring efficiency and early threat detection, thereby bolstering crew safety measures. By consolidating data from diverse IoT-enabled cargo sources, the platform empowers crews to proactively address issues, minimize risks, and ensure smooth operations throughout voyages.

Mike Fitzgerald, Chairman of Net Feasa, expressed pride in this milestone achievement, emphasizing the platform’s role in enhancing safety, security, quality control, and operational efficiency in maritime transportation. Leveraging advanced wireless IoT networks and security expertise, the platform offers unparalleled insights and control over cargo conditions, enabling proactive threat detection and swift response to mitigate risks and optimize operations.

Key features of the Vessel Control Tower include real-time asset monitoring of multi-vendor reefers, proactive threat detection from smart containers, seamless integration with existing visualization platforms, customizable dashboards, and robust cyber-secure wireless networks.

With a commitment to crew and cargo safety, Net Feasa aims to reduce costs associated with damage and loss at sea while delivering exceptional value and service to the shipping industry. By amalgamating cutting-edge IoT technology with extensive industry experience, Net Feasa is setting a new standard for maritime visibility, security, quality control, and efficiency.

Global Logistics, Global Trade Daily, Warehousing

Unleashing the Power of WMS for 3PLs: A Gateway to Competitive Advantage

April 17th, 2024 Jack O’Malley Leave a comment

In the fiercely competitive world of third-party logistics (3PL), success hinges on the ability to swiftly onboard new customers, optimize operations, and drive revenue growth. With the market constantly evolving, 3PL providers are increasingly turning to advanced technological solutions to gain a competitive edge. Among these solutions, Warehouse Management Systems (WMS) emerge as a cornerstone in empowering 3PLs to excel in today’s fast-paced environment while strategically positioning themselves for future success.

For 3PLs, the journey begins with their sales teams actively pursuing new customers to fuel revenue growth. However, the real challenge lies in efficiently onboarding these customers and seamlessly integrating them into the logistics ecosystem. A robust WMS serves as a linchpin in this process, enabling 3PLs to optimize their operational model and rapidly onboard new clients in as little as 30 days. By providing setup wizards and copy/paste capabilities, a 3PL-focused WMS simplifies and accelerates the onboarding process, enabling 3PLs to scale their operations more efficiently. In addition, by tactically managing the pick, pack, and ship processes, WMS streamlines product flow both into and out of warehouse facilities, laying the groundwork for further enhanced efficiency and customer satisfaction. By automating and optimizing these critical tasks, WMS helps 3PLs streamline their operations while reducing errors. This leads to increased revenue generation by enabling 3PLs to process orders more quickly and accurately while enhancing operations.

Moreover, the agility and flexibility inherent in modern WMS solutions play a pivotal role in accommodating the diverse needs and process requirements of individual customers with multiple levels of configuration and ability to support multiple individual rule sets and workflows in a single facility. With the ability to adapt to unique capabilities and preferences, WMS empowers 3PLs to deliver tailored solutions that meet the evolving demands of their clients. Whether it’s managing multiple business units within a single facility or catering to customers across various regions, WMS provides the scalability and versatility needed to meet business goals and drive success.

The transition to a cloud-based WMS architecture brings unparalleled advantages for 3PLs, particularly in terms of scalability and technological agility. In an industry characterized by seasonal peaks and fluctuations in demand, cloud-based WMS solutions offer the flexibility to scale resources dynamically, ensuring optimal performance during peak periods. By offloading concerns about technology infrastructure and scalability, 3PLs can focus on maximizing labor efficiency and delivering exceptional service to their customers.

Advanced features such as flexible billing engines also help 3PLs adapt to evolving customer needs and services, eliminating revenue leakage and maximizing profitability. Experienced 3PLs know it’s important to partner with a WMS provider that has extensive billing knowledge and capabilities. Highly granular, configurable capabilities that capture all billable activities as well as supporting broad contract terms is crucial.

Furthermore, WMS solutions provide invaluable insights and visibility into warehouse operations, allowing 3PL providers to make data-driven decisions and continuously improve performance. By offering real-time visibility into inventory levels, order statuses, and operational metrics, WMS enables 3PLs to identify inefficiencies, streamline processes, and enhance overall productivity. When combining a Distributed Order Management (DOM) approach to intelligent sourcing, this proactive approach not only drives cost savings but also ensures that 3PL providers can deliver superior service and value to their clients.

The strategic adoption of WMS empowers 3PLs to thrive in an increasingly competitive market landscape. WMS represents more than just a tool for operational optimization – it’s a gateway to competitive advantage for 3PLs. As the logistics landscape continues to evolve, the adoption of advanced WMS solutions will be instrumental in shaping the success and sustainability of 3PL operations, enabling them to stay ahead of the curve by achieving sustainable growth and profitability.

Author Bio

Jack O’Malley is Vice President of Account Management for Softeon, a WMS provider focused exclusively on optimizing warehouse and fulfillment operations. For over two decades now, we have been helping our customers succeed. Investing in R&D enables us to develop software to solve the most complex warehouse challenges. Softeon is laser-focused on customer results, with a 100% track record of deployment success. We believe warehouse leaders shouldn’t have to settle for a one size fits all approach to technology. For more information, please visit www.Softeon.com.

Global Logistics, Global Trade Daily, News

FreightWeekSTL 2024: Unveiling Innovations and Trends Shaping Global Supply Chains

April 17th, 2024 Tim Jay Leave a comment

The St. Louis Regional Freightway is gearing up for the 7th annual FreightWeekSTL, scheduled from May 13 to 17, 2024. This week-long event promises a dynamic blend of virtual and in-person activities, including a riverboat tour and engaging discussions, all centered around the latest innovations and trends impacting freight movement. With a focus on highlighting the pivotal role of the St. Louis region in advancing major infrastructure projects and supporting the global supply chain, FreightWeekSTL is set to provide invaluable insights for industry professionals.

Mary Lamie, Executive Vice President of Multimodal Enterprises for Bi-State Development, expressed excitement about hosting FreightWeekSTL once again. The event aims to address challenges, showcase innovations, and underscore investments influencing the global supply chain. Lamie emphasizes the significance of the St. Louis region in bolstering freight movement and fortifying the logistics and manufacturing sectors.

While the majority of conference activities will be conducted virtually, there are opportunities for in-person interaction. Participants can join a riverboat tour on the Mississippi River to explore critical elements of the region’s multimodal freight network. The Freight Summit Luncheon will feature discussions on Infrastructure Investment as an Economic Driver, along with the unveiling of the 2025 Priority Projects List. The event will conclude with a Tailgate Happy Hour prior to a thrilling MLS soccer game.

A series of virtual panel sessions will delve into various topics, including technological innovations, supply chain visibility, collaboration, and trends impacting agriculture and the barge industry. Notable speakers such as Rob Cook from Sheer Logistics and Ken Eriksen from Polaris Analytics & Consulting will share insights and expertise on navigating the evolving landscape of freight movement.

Additionally, FreightWeekSTL will highlight workforce opportunities within the logistics and manufacturing sectors, showcasing ongoing collaborations aimed at nurturing talent in the St. Louis region. The event will also unveil the latest Industrial Real Estate Market Report, emphasizing the region’s industrial strength and global connectivity.

With an exciting lineup of activities and discussions, FreightWeekSTL 2024 promises to be an enriching experience for industry professionals, whether attending in-person or virtually.

To learn more about FreightWeekSTL and to register for any of this year’s sessions, visit https://freightweekstl.thefreightway.com.

China Denounces U.S. Probe into Shipbuilding Industry as Unfair Accusation

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