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LATEST: GLOBAL TRADERS ON THE MOVE

LATEST: GLOBAL TRADERS ON THE MOVE

Following a national search, seaport and economic development leader Jonathan Daniels was named the new chief executive & port director at Port Everglades, Broward County, Florida. Daniels came to Port Everglades from the Port of Gulfport, Mississippi where he had been the executive director since 2013.

Joseph Dzierzawski has been named president and CEO of Beumer Corp., the Somerset, New Jersey-based U.S. subsidiary of Germany’s Beumer Group. He is now fully responsible for the business lines Conveying & Loading Systems, Palletizing and Packaging Technology, and Sortation and Distribution Systems in the North American market.

Meanwhile, Christian Schneider is Beumer’s new director of People & Culture, which puts him in charge of employer branding, recruiting, university marketing and more. He will work out of the company’s Beckum, England, headquarters.

Denver-based OmniTRAX, one of the fastest-growing railroads in North America, appointed Robert Walker as its chief financial officer. For the past 10 years, Walker served as chief operating and financial officer at The Madison Companies and affiliates. OmniTRAX, an affiliate of The Broe Group, also recently added industry veteran Federico D. Díaz Page to its Industrial Development team. Diaz Page was most recently executive vice president of Texas Pacifico Transportation Ltd., a short-line rail operator in Texas. And Justin Strickland just joined OmniTRAX as director, Economic Development. He comes to the railroad after more than 12 years with the Albany-Dougherty Economic Development Commission in Albany, Georgia.

Ruan tabbed Jeff Harpole to be the Des Moines, Iowa-based 3PL’s new vice president of Operations. Leading national retail and grocery accounts for Ruan, Harpole most recently served as vice president, Transportation for Dollar General.

Steptoe & Johnson LLP has added Jeff Weiss as a partner who will practice in the Washington, D.C.-based law firm’s International Trade Group. He spent more than 15 years in senior legal, policy, diplomatic, negotiation, and political roles in the U.S. government across three administrations, including at the White House, USTR, and Commerce. And last but not least, UK-based global logistics provider GEODIS appointed Tomy Sofhian as the managing director of Indonesia.

disruptions

How to Manage and Overcome Disruptions in the Supply Chain

Regardless of the type of disruption, supply chain resilience is highly dependant on several factors, one of which being reliable end-to-end visibility created at the first sign of trouble. Whether it’s a health crisis, a series of policy changes, or other forms of disruption, proactive rather than reactive measures are critical in staying afloat when facing a variety of disruptions or bottlenecks.

Disruptions in the modern supply chain are simply inevitable and require a different approach in data management and predictability to successfully overcome the challenge at hand.  By effectively utilizing technology tools available and developing a solid crisis plan can make a significant difference in recovery times.

Below is a helpful infographic from DiCentral breaks down various predictable and unpredictable supply chain disruptions and what it takes in the planning, reaction, and response stages of managing and navigating challenges.

airlines

United Airlines Moves Cargo Around the World in Cargo and Passenger Planes

If you’ve been wondering who is filling commercial jetliners these days, we have the answer: some brave travelers and a whole lot of cargo.

United Airlines has played a vital role in helping keep the global supply chains stable during the COVID-19 pandemic by flying needed goods not only in its cargo planes but what are normally passenger planes as well.

In addition to current service from the U.S. to Asia, Australia, Europe, India, Latin America and the Middle East, United has added cargo-only flights to Dublin, Paris, Rome, Santiago and Zurich.

“Air cargo continues to be more important than ever,” explains United Cargo President Jan Krems. “This network expansion helps our customers continue to facilitate trade and contribute to global economic development and recovery. I’m proud of our team for mobilizing our cargo-only flights program that enables the shipment of critical goods that will support global economies.”

Since United Airlines began the program on March 19, more than 2,400 cargo-only flights have transported more than 77 million pounds of cargo.

Meanwhile, despite a three-year-old blockade on air, land and sea travel imposed on Qatar by its neighbors Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, Qatar Airways claims its share of the passenger and air cargo market has grown significantly over the past three months.

“Qatar can be proud that it is home to not only the Best Airline in the World but also the current largest passenger airline, the largest cargo airline and the Third Best Airport in the World,” states a company release.

The Middle East countries cut diplomatic and trade ties with Doha and imposed the blockade on June, 5, 2017, because Qatar allegedly supported “terrorism” and was too close to Iran. Calling the blockade “illegal,” Qatar rejects the claims and says there was “no legitimate justification” for the severance of relations.

counterfeit

Tip-Off Leads to Successful Tracking of Counterfeit Oil and Gas Pipes

Cooperative efforts between the Dubai Customs’ IPR and Intelligence departments led to the successful identification and seizing of 58 counterfeit Vallourec oil and gas pipes before they enter the UAE market.

According to information released by Dubai Customs, a tip-off received by the IPR Department pointed to four specific vessel containers from an Asian country carried the counterfeit items. These suspicions were confirmed upon completion of a technical inspection revealing non-conformity with specification and quality requirements,  counterfeit trademarks branded on the steel pipes, and forged quality certificates.

“Counterfeiting has a damaging effect on business, the economy and the general population, and when it comes to oil and gas pipes, it can wreak havoc on the environment as well,” said Yousef Ozair Mubarak, Director of IPR Department.

“As soon as we received information about this shipment of fake pipes, we moved swiftly to seize and recycle the contraband to prevent any potential damage to the environment. This is our commitment towards manufacturers and rights-holders in order to provide them the best possible investment conditions in support of sustainable economic development.”

Vallourec is a French manufacturing company offering a wide range of steel  VAM® premium connections for Oil & Gas well equipment such as casing, tubing and accessories. These items are designed to withstand high temperatures and pressures to better support the petroleum industry. Compromising the quality of steel for these items, risks in worker safety and the petroleum industry are increased.

“Our control room spots and tracks any high-risk consignments of smuggled goods before their arrival to Dubai using the Smart Vessel Tracking System, which Dubai Customs developed for the purpose,” commented, Shuaib Al Suwaidi, Director of Customs Intelligence Department. “We were alerted by the IPR Department and acted accordingly to track down the suspected shipment and eventually intercepted a significant haul of illicit counterfeit steel pipes.”

 

commerce

COMMERCE CLEARS WAY FOR U.S. COMPANIES TO MORE FULLY ENGAGE IN TECH STANDARDS-DEVELOPMENT BODIES

U.S. Secretary of Commerce Wilbur Ross on June 15 announced a new rule ensuring U.S. industry’s ability to more fully contribute to standards-development activities in the telecommunications sector. This action is meant to ensure Huawei’s placement on the Entity List in May 2019 does not prevent American companies from contributing to important standards-developing activities despite Huawei’s pervasive participation in standards-development organizations.

“The United States will not cede leadership in global innovation,” Ross said. “This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security. The department is committed to protecting U.S. national security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards.”

Those standards serve as the critical building blocks for technological development by enabling functionality, interoperability and safety, argues Commerce, which adds that U.S. participation and leadership in standard-setting influences the future of 5G, autonomous vehicles, artificial intelligence and other cutting-edge technologies.

Under the new Bureau of Industry and Security rule, technology that would not have required a license to be disclosed to Huawei before the company’s placement on the Entity List can be disclosed for the purpose of standards development in a standards-development body without the need for an export license.

EXIM'S

CHAIRMAN REED UNDERSCORES EXIM’S SUPPORT FOR AMERICAN INNOVATION GLOBALLY TO COUNCIL ON COMPETITIVENESS

Export-Import Bank of the United States (EXIM) President and Chairman Kimberly A. Reed participated in a Council on Competitiveness virtual dialogue with more than 40 members of the Council’s “Technology Leadership and Strategy Initiative” on June 8. Attendees represented a range of businesses, universities, and research institutions from across the country.

During the event, Reed highlighted EXIM’s role in advancing American innovation by helping U.S. businesses export their “Made in the USA” products around the world. She also discussed EXIM’s new Program on China and Transformational Exports, established in EXIM’s historic reauthorization, which is intended to help level the playing field for U.S. exporters and workers by directly neutralizing export subsidies for competing goods and services offered by the People’s Republic of China.

“The Council on Competitiveness has worked for many years to jump-start American productivity, and I was honored to join this esteemed group to focus on how the U.S. government can support innovation on the global stage,” Reed said.

Speaking of innovation, four days later Reed hosted a teleconference with 140 business leaders and stakeholders in the artificial intelligence, quantum computing, and high-performance computing sectors. On the call, Reed highlighted how EXIM’s partnership with the private sector can support and accelerate the success of American companies in of these transformative industries.

“These transformational exports drive growth in the United States economy, enhance our economic and national security, and improve our quality of life,” said Reed.

customs

Dubai Customs Reports Growth Amid Pandemic Disruption

Dubai Customs released information detailing impressive growth seen during the first part of 2020, confirming a solid 36 percent increase in customs transactions compared to last year’s transactions. A total of 5.9 million transactions were processed between January and May with 1.1 million occurring in May alone.

This upward growth trend further positions Dubai’s economy as resilient and prepared for crisis-related disruptions. Advances in technology, infrastructure, stimulus packages, and smart services supported the region’s successful operations in trade-related services. Among solutions utilized to support operations was the Smart Workplace system. This system supported the completion of declarations in as little as four minutes.

“Stimulus package announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai helped mitigate the impact of the pandemic,” said Ahmed Mahboob Musabih, Director General of Dubai Customs.

In addition to transaction growth, Dubai Customs reported a 95 percent increase in business registration requests compared to the first five months in 2019. Additional requests included 358,700 refund requests, 220,700 certificate/report requests, and 146,900 inspection date booking requests during the same time period. Dubai Customs reported a whopping 3.51 million transactions have been processed via smart and online channels further supporting global trade and the supply chain amid the pandemic.

“Our wise leadership supports the business and trade sector in these challenging circumstances. A number of initiatives launched by the government have helped the business sector keep going, enhanced liquidity, and reduced the impact of the current global economic situation. This is clearly manifested in the growing number of customs transactions handled by Dubai Customs in the first five months of this year.”

maritime transport

UNCTAD AND IMO: REMOVE UNNECESSARY REGULATORY OBSTACLES TO MARITIME TRANSPORT DURING AND AFTER COVID-19

The world’s reliance on maritime transport makes it more important than ever to keep ships moving, ports open and cross-border trade flowing, and to support ship crew changeovers, the United Nations maritime and trade bodies said in a joint statement published on June 9.

UNCTAD and the International Maritime Organization (IMO) reiterated calls for governments to promote crew well-being by allowing crew changes and ensuring seafarers and other maritime personnel have access to documentation and travel options so they can return home safely.

Maritime transport depends on the 2 million seafarers who operate the world’s merchant ships, which carry more than 80 percent of global trade by volume, including most of the world’s food, energy, raw materials and manufactured goods. Crew changeovers are essential for the continuity of shipping in a safe and sustainable manner, but the process is currently hampered by travel restrictions due to the COVID-19 pandemic.

UNCTAD and IMO reaffirmed the urgent need for “key worker” designation for seafarers, marine personnel, fishing vessel personnel, offshore energy sector personnel and service personnel at ports. Governments and relevant national and local authorities must recognize that these workers provide essential services, regardless of their nationality, and should thus exempt them from travel restrictions when in their jurisdiction, the organizations pleaded.

“Such designation will ensure that the trade in essential goods, including medical supplies and food, is not hampered by the pandemic and the associated containment measures,” read their joint statement. “We emphasize that, for trade to continue during these critical times, there is a need to keep ships moving, ports open and cross-border trade flowing, while at the same time ensuring that border agencies can safely undertake all necessary controls. International collaboration, coordination and solidarity among all is going to be key to overcoming the unprecedented global challenge posed by the pandemic and its longer-term repercussions.”

Global Trade Magazine Opens Nominations for 8th Annual “Americas 50 Leading 3PLs”

Global Trade Magazine has officially kicked-off its 8th annual “America’s Top 50 Leading 3PLs” nominations. This year’s selected nominees will showcase the most competitive movers and shakers transforming domestic and international logistics, exceeding client expectations while maintaining an exemplary company profile with competitive solutions.

Following last year’s focus on “needs-based” and “high demand” categories, the 2020 feature will spotlight specialty industries including E-commerce/Omni-Channel, Temperature-Controlled, Hazmat, Distribution, Freight Forwarding, and much more.

“It’s a measure of the quickly growing/changing/evolving global marketplace that arguably the most critical industry serving it, Third Party Logistic Providers (3PLs), continues to grow, change and evolve at a dizzying pace,” explained former senior editor Steve Lowery.

Global Trade Magazine will determine the final 50 nominations based on industry reputation, outstanding operational excellence, game-changing initiatives, disruptive technology solutions, and unmatched levels of innovation. This list showcases leading companies while providing a comprehensive list for businesses seeking new partnership opportunities.

“It’s easy to say that one must move faster, deliver services quicker, be more innovative and have organizational agility to flex with the world, but it takes something quite different to lead the cultural transformation that is required to make these goals a reality,” said Rich Bolte, CEO of BDP.

“Leadership will have to change as well. Leaders will be measured by their ability to innovate and create potential disruptions. The old paradigm of measuring only performance and execution has changed.”

To see a complete list of recipients, please visit globaltrademag.com to view the current issue.

Nominations are currently open and will be accepted through August 15 at 5 p.m. CST.

CLICK HERE TO NOMINATE YOUR 3PL

banks

OUT WITH THE OLD: WHY BANKS MUST ADOPT FINANCE TECHNOLOGY TO REMAIN RELEVANT

The term “FinTech” continues to saturate the news and financial institution reporting in recent years. It’s not surprising that streamlining financial services in the age of automation is something traditional banks struggle with adopting as global markets capitalize on technology. The trade sector on a high level is already purging antiquated, traditional processes involving paper, phone calls, Excel spreadsheets and tedious, unreliable methods of tracking and invoicing.

Now that FinTech is part of the bigger financial picture, it only makes sense that more companies in the global trade market are adopting FinTech as the norm rather than an option. This presents its own set of challenges for banks to overcome as much as it presents opportunities in optimization and risk mitigation. FinTech has its own challenges to overcome as well before it can successfully replace the traditional financial processes currently in place.

To understand exactly how FinTech fits into the bigger picture, we must break it down and evaluate all angles. To start, trends in emerging finance technology include variables from governments and dominating players to emerging acquisitions positioning big tech as a disruptor and solution to trade finance. So, what are some of the top emerging trends currently found in the financial technology space? According to experts at Azlo, a no-fee digital banking platform, government regulation will weed out fly-by-night FinTech while ownership of a self-sovereign identity will become more prevalent for risk modeling. Additionally, FAANG companies are currently positioned to become major players in the FinTech space as they continue to raise the bar for consumers and businesses alike.

Azlo also maintains that banks must adopt FinTech and emerging tech to remain a relevant part of the financial industry, warning that if they don’t, European, African and Asian markets, which possess less regulation and oversight, will own the space very soon. Additionally, optics, trust and inevitable obsolescence will ultimately serve as supporting reasons behind the adoption of emerging tech in the banking space in the near future.

From a safety and risk mitigation point of view, cybersecurity requires a sophisticated and advanced system to combat various strategies hackers utilize to disrupt the financial industry. Cybersecurity goes hand-in-hand with the recent surge in FinTech and will present itself as a challenge for financial companies to mitigate. How will this risk impact banks from a cost perspective? Think of it in terms of compliance and regulation. Circling back to Azlo’s expert point that once the government starts implementing harsher regulations, the days of FinTech will take a different stance in the financial industry. An example of this is found in Mexico’s FinTech law that took full effect this year and in the Latin America markets. As noted in a November Nasdaq article: “The goal of the FinTech law was to help bring more people into the formal economy. Additionally, it would help to reduce the amount of cash in circulation, which would cut down on money laundering and corruption as well.”

Nasdaq experts also point out the significant progress FinTech has made within the Mexico and Latin America markets. “In January 2019, Albo raised $7.4 million, sparking a surge in investor interest in Mexican neobanks,” states the article. “In March 2019, Mexican neobank, Fondeadora, announced a $1.5 million round of investment, and in May 2019, Nubank, Brazil’s largest neobank with over 15 million users, announced its plans to expand into Mexico.”

Considering the reputation for cash dependency in Mexico paired with the more than 273 FinTech ventures operating in the country, it’s no surprise that FinTech is disrupting and recreating opportunities for global markets while changing the way cash flow is approached.

FinTech will not necessarily hurt the traditional banking model, as it does offer an automated and sustainable approach for customers while keeping up with what is expected of companies on a cultural scale. To remain relevant, banks should consider what customer generations are emerging while maintaining the changing ecosystem supporting efficiency, sustainability and cost-savings.

Furthermore, FinTech is changing the way investments and lending are assessed. FinTech allows for much larger sets of data, providing a new level of visibility. Possessing the ability to manage multiple information streams that reflect the health of a company is found as an unmatched solution provided by FinTech, according to Azlo. With this information, companies can further evaluate next-step approaches and what actions in place need to be revisited, revamped or completely eliminated. The name of the game is data visibility, folks, and that is exactly what FinTech is doing to redefine how finances are approached.

“FinTechs are relying on different information when underwriting consumers, looking at things traditional banks have never considered and providing more people with access to personal and business capital,” explains Donna Fuscaldo in her blog, “The Rise of Fintech: What You Need to Know & Financial Services Now Offered.”

“Traditional financial institutions may be late to the FinTech party, but they haven’t missed it altogether,” Fuscaldo writes. “Many of them are creating their own services or partnering with established FinTechs to bring services to their clients. It’s happening in every aspect of FinTech from robo advisors with Charles Schwab’s Schwab Intelligent Portfolios to digital payments with Visa’s Visa Pay digital payment service. Even heavy hitters like JPMorgan are turning to FinTech’s data to evaluate applications for loans, and Quicken Loans, the online mortgage lender, launched its Rocket Mortgage app that can churn out mortgage approvals and rejections in minutes. All of this action on the part of the traditional financial services industry make for more choices beyond just the startups.”

With cybersecurity and automation consistently creating new ways for companies to optimize their payments while maximizing data and integration, only time will tell how much regulation global governments will impose and whether that reshapes the FinTech marketplace. One thing is certain: Traditional banking will continue to be challenged to redefine how customers are served, transactions are protected and how the investment and lending sectors approach opportunities throughout the international and domestic markets.