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Global Trade Must Go On

Global Trade Must Go On

Seldom mentioned, but nonetheless addressed, it is clear that the Hong Kong trade market along with markets around the world are not letting the current trade war between China and the U.S. hinder  the opportunities for trade growth and success.  Day 2 of the annual Asian Logistics and Maritime Conference hit the ground running, proving that nothing stands in the way for the continuation of global trade success, with or without the imposed tariffs. It goes without saying the trade war is a concern, but is nowhere close to stopping leading initiatives. 

“This is the thing that keep us awake at night,” Alexander Tarini, Vice President of Logistics for Olymel said in response to the current trade war. The potential impact the imposed tariffs could place on business efforts and trade success continues to saturate news channels and conversations at the mention of the global economy. Leaders encouraged others to focus on riding the waves of change, keep the customer first and utilize the uncertainty as a way to implement flexibility into operations.

“Hong Kong continues to be a key trading and logistics hub linking the mainland, Association of Southeast Asian Nations (ASEAN)
members and global markets through its excellent regional and global sea and air links,” according to a release highlighting the conference themes from HKTDC.

While some industry leaders expressed almost no concern over the current trade war, many provided step-by-step strategies to maintain control over the numbers, supply chain, customer relations as a means to gain peace of mind and ensure business keeps moving.

President of President, Asia Pacific Division, FedEx Express Karen Reddington urged the importance of connectivity as a key to growth success and added that, “Asia is a strong, resilient trading bloc in a globalized world, and connectivity is the key to global growth… we must keep connecting and integrating to maintain the momentum.”

The confidence of the Hong Kong market is what keeps is moving, according to Reddington and as the conversation of its future as a logistics hub, there is no question the strong infrastructure and regulatory systems already in place will determine its success.


Source: HKTDC


Global Trade and the Evolution of Digitization

During this year’s eighth annual Asian Logistics and Maritime Conference in Hong Kong, one of the most common themes discussed was the impact, success to-date and history involved in the world of digitization for the supply chain sector.

Mr. Wilson Pang, Fintech Senior Manager, spoke on the topic during the second Supply-chain Management and Logistics Forum on day 2 of the conference, emphasizing the importance of improved research methods and application for the industry. Key highlights from his presentation included a thorough SWOT analysis of the Hong Kong trade sector and what possibilities can be utilized for maximized success and elimination of inefficiencies.

Strengths included the obvious leading role the Hong Kong market plays in the global trading arena and the fact that it accounts for 3 percent of the world’s total trade. Weaknesses were identified as lack of financing for less than 50 percent of total trade between 2006-2015. The Belt and Road initiative provided the strongest opportunity for the market, with an emphasis on expanding trade in an effort to support and promote economic cooperation and peace.

Here comes the game-changer: the threat. From all of the perspectives addressed thus far, threat prospects can range from a variety of factors. Nonetheless, Pang identified the high transaction cost spurred from documents and manual processes combined with very likely risk of data errors and duplication.

Digitization in the form of e-trade connect is a solution Pang presented. He also shared a very interesting illustration proving the evolution of digitization through the story of Russian world class chess champion Garry Kasparov and his defeat by an IBM supercomputer. Factoring in the elimination of human error and outsmarting the human mind through digital solutions, the risk of duplication and errors are resolved.

Pang took it one step further and broke down the process into three priority functions: agreement creation, financing and reconciliation.  Through this process, trade and trade finance is simplified while benefiting all players in the trade sector. This is how industry leaders can unleash the full potential of business.


Source: Presentation, “eTrade Connect: Welcome to the Future of Trade” by Mr. Wilson Peng, Senior Manager, Fintech Facilitation Office

Logistics, Air Freight, Supply Chain Management and More

Day 1 of the Asian Logistics and Maritime Conference kicked off yesterday with over 70 industry experts speaking on the topics of global trade, economic development, supply chain management best practices and even shared their thoughts on the current trade war situation between the U.S. and China.

“ALMC remains committed to its goal: to provide a forum for learning, sharing and exchange among some of the biggest players in the industry, and to help chart a path forward. The event
also highlights Hong Kong’s role as the region’s logistics and maritime hub,” HKTDC Executive Director Margaret Fong said.

Many of the common themes featured during the plenary sessions focused on the Belt and Road Initiative and what’s being implemented as a means of strategy and proactivity in an evergreen market. A total of eight sessions were planned for day 1 to offer a variety of topics for each company and involvement within the logistics and trade industry, highlighting blockchain technology solutions and hyperloop technology in the age of digitization and technology.

Global industry leaders such as Karen Reddington, President of FedEx Express, provided granular-level business operation tips, noting that it is imperative that we keep the trade sector, “As open and as fair as possible.”

Tech demo sessions were also conducted featuring some of the industry’s newest devices, providing solutions in cold supply chain and more. There are more than 150 one-on-one business matching sessions coordinated for tomorrow’s plenary session and exhibit from companies such as LOGFLOWS, Arwin Technology, FreightAmigo Services, Neosen Energy HK and Swivel Software Limited.

Global Trade Magazine will continue providing updates on the conference here as well as on our Twitter.

Source: HKTDC