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PORT OF VANCOUVER USA’S BOARD GREENLIGHTS 2018 STRATEGIC PLAN

Archives, Global Trade Daily, Top Ports

PORT OF VANCOUVER USA’S BOARD GREENLIGHTS 2018 STRATEGIC PLAN

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The Port of Vancouver USA Board of Commissioners on Sept. 11 unanimously approved the port’s 2018 Strategic Plan, which includes a new vision statement and outlines 20 goals and 66 strategies to guide the port’s activities and budget for the next decade.

The plan was developed over 11 months with broad public and stakeholder input, including advisory panels, public open houses, commission meetings, public workshops and hundreds of public comments.

“We appreciate all the time and energy our community has put in as we’ve created our new strategic plan,” says CEO Julianna Marler. “We heard from hundreds of people, both within the port and across our community. Their perspectives helped us develop a balanced plan so we can continue to advance as an organization while achieving our state-directed purpose and our mission of creating economic benefit through leadership, stewardship and partnership in marine, industrial and waterfront development.”

The port first developed a strategic plan in the early 2000s and updated it each year as necessary. By 2017, the port needed a new plan to address organizational change, including completion of many key initiatives; marine and industrial business growth; identification of new projects; and changes in staff and elected leadership.

The 2018 Strategic Plan is available at www.portvanusa.com/key-projects/strategic-plan.

 

 

 

 

Archives, Global Trade Daily, Special Reports

How Modern Networks are Supporting Humanitarian Aid and Disaster Recovery

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Ensuring how lifesaving medicines and supplies are distributed is challenging, especially when it involves moving supplies in a hurry. Whether overseeing how disaster relief services are distributed in a time of crisis or to secure the medical supply chain to help eliminate counterfeit drugs, locking lock down the global supply chain and achieving transparency has never been more critical.

Traditionally, many U.S. based nonprofits have been penalized by potential donors for having high administrative costs. Thanks, in part, to this increased spending scrutiny, investments in technologies that could be transformational in the fight against poverty and disease have been shelved to keep spending at bay and to avoid doling out the high price tag the technology could cost. Dan Pallotta’s Ted Talk called out the double standard that drives our broken relationship to charities when he urged companies to start rewarding charities for their big goals and big accomplishments even if that comes with big expense. Having worked with hundreds of nonprofit organizations, I have witnessed their Herculean efforts to get the right aid, to the right people, at the right time despite the fact they were saddled with antiquated technology.  Nonprofit organizations, especially those delivering lifesaving aid, need world-class tools as much, if not more, than for-profit organizations.

Coping with Supply Chain Management Challenges

The sheer number of constituents involved in the aid ecosystem – nonprofits, first responders, governments, funders, suppliers, logistics providers, warehouses, food banks, clinics, etc. – each rely on different systems, applications, and formats that make custom integrations necessary for them to collaborate.

For instance, many non-government organizations (NGOs) are working to end AIDS, tuberculosis, and malaria in Africa. However, they all face a number of logistical challenges as they deal with naturally occurring data silos that are scattered across various geographic locations. Also, the scale of these programs is massive. In Ethiopia alone there are more than 435,000 square miles with more than 30M people living in poverty.

In the humanitarian arena, challenges are also amplified by poor infrastructure. When it comes to internet speed, most of Africa ranks at the bottom of the list with Ethiopia coming in at 139 out of 196 countries worldwide. And as one could imagine, the internet access declines the further one  travels into more rural areas.

While distributing international aid is challenging, managing a supply chain moving pharmaceuticals is especially difficult. First, there’s a lot of product to deal with and pharmaceuticals require a hyper focus on expiration dates, medical oversight and, for some products including vaccines, a temperature-controlled supply chain.

Then, there is the growing epidemic of fraudulent and counterfeit products that are entering the supply chain. According to a World Health Organization (WHO) report, substandard and counterfeit drugs cause improper dosing, compromise the effectiveness of medicines and can even lead to overdose and death. The WHO says that one in ten medicines are counterfeit, and 100,000 people in Africa die every year due to counterfeit medicines.

As if the above challenges aren’t bad enough, a disaster can make them exponentially more difficult. Communication problems are magnified, internet access can be lost in affected communities, and new players are introduced. Consequently, needs are changing even more rapidly and time is of the essence.

Humanitarian Aid Reaches a Tipping Point

Nonprofits and the partners they rely on are realizing that the flawed architecture of single enterprise-centric solutions cannot support the highly dynamic and interconnected business environment that is required to deliver aid. Just as cloud-based social networks such as LinkedIn and Facebook have created new approaches to how we manage our personal and business relationships, new network platforms and the resulting communities are changing how business is conducted between the end consumer and all the companies on the network.

Similar to when you change your status or job, your entire network has access to this information in real time, and supply chain networks work the same way. With you and all of your partners on the same page at the same time brings unprecedented value to the humanitarian aid ecosystem.

In a network model, costs are reduced for all parties as the network grows, because they are shared by the members. In addition, these networks operate using a monthly subscription fee versus the traditional large up-front costs. This lowers the barrier to entry, provides a predictable ongoing run rate, and enables all parties to leverage the same platform and infrastructure.

In the network model, the technology is by the community for the community. The community defines best practices and as new features are added, they are shared across the network. The technology is evergreen versus stagnant; constituents stay on the leading edge, rather than having to invest in expensive upgrades.

How Networks are Supporting Universal Visibility and Transparency

Sophisticated permissions technology is also enabling new found visibility, as advanced networks can partition data and provide the right information to the right person. Now, logistic providers know the exact location of their trucks, program managers can see who received aid, and funders will see their impact quantified.

Networks also provide a single version of truth to all the constituents so the entire humanitarian ecosystem can be on the same page and focus on the recipients changing needs. This is especially important in a disaster, when every moment counts.

The network can also be used to fight the counterfeit problem as the technology can store a library of authentic products by dosage form all the way down to the molecule. At any point in the supply chain products can be validated to ensure they are legitimate using sophisticated scanners. If a counterfeit product is detected, networks provide the ability to track and trace through serialization which greatly helps in the event of recalls and the removal of counterfeit products.

As more organizations join the network, the value of being a participant increases. New companies will find that many of their business partners are already on the network, which reduces time for on-boarding. This enables the humanitarian response to be agile and expand as required, which is especially important in disaster response because you never know when or where the next disaster will strike. Even with no internet access, some sophisticated network providers offer the ability to work offline and then synch up when an internet connection becomes available. In a disaster response scenario or working in developing countries, this is a game changer. Today, nonprofits have the opportunity to leap frog some traditional challenges and investments. For example, they can skip ERP and go straight to a network platform.

Whether working domestically or internationally, networks give humanitarian organizations transformational abilities that can magnify bottom of pyramid impact. By allowing the supply chain to bypass ERP solutions, participants have the ability to create bi-directional supply chains versus the traditional push model. This enables them to better understand what is needed and ultimately help relieve the suffering for those inflicted.

About the Author:

Melis Jones, Global Marketing Director at One Network Enterprises., a provider of the blockchain-and AI-enabled network platform, The Real Time Value Network.  To learn more, visit https://www.onenetwork.com/ or follow them at@onenetwork

Archives, Global Trade Daily, U.S. Ports

RECORD BREAKING NUMBERS REPORTED FOR FLORIDA PORT

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Port Everglades released information this week boasting an impressive 1,108,465 TEUs for fiscal year 2018 – the highest number recorded to-date for the Port.  The Northern Europe shipping activity and increase in overall consumer population are factors being attributed for the substantial numbers.

Chief Executive and Port Director Steve Cernak stated, “We’ve enjoyed a robust growth period and are moving forward with significant investments to maximize the use of our land, cranes and berth space,” in response to the Port’s growth.

In a proactive attempt to leverage this year’s momentum, the Port plans on investing $1 billion over the next five years towards efforts for infrastructure improvements. This is one of the strategy’s the Port plans on utilizing to continue increasing cargo volumes, according to the release.

Port Everglades will also be undergoing additions to the structure including expansion efforts such as, “adding new cargo berths, installing new Super Post-Panamax container gantry cranes, increasing the lift capacity on existing cranes, and deepening and widening the Port’s navigation channels,” (Port Everglades).

The numbers for the Port are as follows:

-Three percent overall year-over-year increase

-Port Everglades handled 15 percent of all Latin America trade

-The Port handled 37 percent of overall trade in the Florida state region

As the Port continues through the next year, industry competitors and experts alike need to consider such strategies and should learn from the initiatives that prove successful time and time again.  We will continue to monitor Port Everglades and report on additional numbers as they are released.

For additional information on Port Everglades and their cargo initiatives, visit porteverglades.net.

Source: Port Everglades

Archives, Features, Global Trade Daily

Our 2018 Picks for the Top 100 Cities for Global Trade

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Each year, Global Trade magazine takes the time to look at U.S. cities to guide our readers to the best places to do business.

We choose these cities based on many factors: what they’ve done, what’s planned, and how global trade has responded to them. As with any list like this, there is always room for interpretation, but we feel that each of these cities, from the country’s largest to some tiny cities, all deserve to a look from anyone interested in doing business in the United States.

THE NATIONAL ECONOMY AND TRENDS

The economy of the U.S. is stronger than it has been in decades. Record low unemployment, rising wages and high consumer and business confidence are all contributing to huge growth in the economy. The fundamentals of the economy are strong and don’t appear to be weakening soon.

Many businesses and industries that had abandoned the U.S. for cheaper shores are returning due to changes in tariffs and economic realities. Notable is the return of the steel industry, which was all but dead in the U.S. but now appears to be making a quiet resurgence.

On the horizon are areas for concern, depending on whom you ask.

The current administration succeeded with renegotiating some trade agreements, as evidenced by the creation of USMCA to replace NAFTA, but trade with China is still a huge question mark. China’s government doesn’t appear to respond to strong-arm tactics, and they have a large enough economy they may be willing to battle with the U.S. administration.

Some economists predict a mild recession in 2109, but most offer different reasons for this. Without a consensus, it’s hard to believe these predictions will come to fruition.

 

THE BEST CITIES FOR GLOBAL TRADE

Each category of this list allows business leaders to look at locations in which to open or relocate a business.

Multi-Category Winners

These cities deserve mention in several categories. Most times, these are America’s largest cities and are obvious candidates for many categories….

 

New York City(Export/Financial Hub)

New York City is an obvious choice for several categories. As the heart of the global financial community, with Wall Street and most of the world’s largest banks, New York is arguably the global financial center. The Port of New York and New Jersey is still the second busiest in the world. The Big Apple is the launching point for millions of global businesses.

 

Seattle(Export/Skilled Workforce/Financial Hub)

Seattle has been a global trade leader for over a generation. With its well-protected port, and as the home of such businesses as Amazon and Microsoft, skilled workers and financial services have flocked to the city. Few cities in the world offer the global trade access that Seattle does without massive populations.

 

Chicago(Export/Intermodal)

The Windy City has been the entry point to and exit point from the heart of the United States. It is still the ideal location to import and export goods. Its intermodal strengths include a massive highway system, river barges and rail that allow the movement of goods within the country with ease. The St. Lawrence Seaway provides access for ships of every size to go into and out of the Great Lakes.

 

Detroit(Export/Financial Hub/NAFTA/USMCA/Business Incentives)

Despite a legendary crash of the auto industry and bleak images of a downtown in shambles, the Motor City is still an economic powerhouse. With easy access to the Great Lakes and Canada, Detroit is an excellent place to do business with America’s second largest trade partner, Canada. The economy in Detroit has led to business incentives that rival or best anything being provided by the Southern states.

 

Miami , Florida(Export/Skilled Workforce)

More than pristine beaches, Miami and its high-tech port are an excellent location for import/export. There is also an abundance of skilled workers who have arrived in the city, many of them immigrants bringing an intimate knowledge of other nation’s economies and markets.

 

Dallas(Export/Intermodal)

The Big D is a place with a Texas-sized economy and the assets to keep it that way. The intermodal assets in the city make it an ideal location to bring goods in via air or the nearby Gulf ports and ship it to the booming South and into the Mountain states.

 

San Francisco(Financial Hub/Cities to Watch)

San Francisco has been a financial hub since the Gold Rush, and it continues to show its prowess by attracting financial business from Silicon Valley and the large, but hidden, economy of Northern California. The Golden Gate City makes our list of cities to watch as it is going through a growth spurt and, if the city leaders adapt well, will solidify San Francisco’s place among such cities as Hong Kong, Singapore and Los Angeles as a Ring of Fire powerhouse.

 

Charlotte, North Carolina(Financial Hub/Start-Relocate a Business)

There are few cities like Charlotte. Maintaining much of its old Southern Charm, this city has modernized overnight and is attracting some of the best businesses and minds in the country. The quality of life, the vibrant economy and the entrepreneurial spirit of the city make it an ideal place to start or relocate a business. The financial sector makes Charlotte a quiet giant, home to billion-dollar deals and a large investment community.

 

Minneapolis/St. Paul(Financial Hub/Skilled Workforce/Business Incentives)

The Twin Cities have been and are home to many of the nation’s largest financial institutions. It maintains its place as one of the best educated cities in the country with great colleges and universities and a quality of life that keeps people there. The region’s economic developers are committed with loans and grants to help businesses grow and thrive in the area.

 

Durham, North Carolina(Financial Hub/Start-Relocate a Business)

At one point of the Research Triangle, Durham, North Carolina, is on our list of places to start or relocate a business. With abundant workers, from unskilled to highly skilled, arriving to the region every day, it’s an ideal place to put most types of business. The financial sector in Durham is growing as the surrounding states are welcoming large global businesses with staffs that need local financial services.

 

Memphis, Tennessee(Intermodal/Business Incentives)

The Mississippi River flows past this city, known for its music life. The river along with a well-established intermodal system make Memphis a perfect spot from which to import and export. Bringing business to the city is made easier by incentives that often lead the nation in their boldness. Memphis sits at the heart of the South, centrally located to move goods and people up and down the entire country.

 

El Paso, Texas(Export/NAFTA/USMCA)

There might not be a better city to trade with Mexico and South and Central America than El Paso. Right on the Mexican border, with one of the best intermodal systems in the region, El Paso makes it easy to do business with America’s southern neighbors.

 

Austin, Texas(Start-Relocate a Business/Skilled Workforce/Quality of Life)

In a state famous for its rugged individualism, Austin is a place built on community growth and shared wisdom. This has attracted tens of thousands of skilled workers and created a capitol city that is friendly to residents and new businesses. Altogether, this makes Austin one of the coolest cities from which to launch one’s global empire.

 

Cheyenne, Wyoming(Start-Relocate a Business/Small Market)

With just 64,000 residents, Cheyenne is a small city that has a lot going for it. Wyoming is leading the nation in business climate, according to the Tax Foundation. This, combined with a commitment to small and medium-sized businesses, makes Cheyenne a great place to start or relocate a business. Still small enough to have that small-town feel, Cheyenne has a full-sized business climate.

 

Bismarck, North Dakota(Start-Relocate a Business/NAFTA/USMCA/Small Market)

Along the Canadian border there is a business boom that is quietly eclipsing the country. North Dakota’s oil rich economy is creating a perfect environment for starting or relocating a business, particularly if you’re looking to do business with Canada. North Dakota’s capitol city is small (72,500 souls) but is moving up the ranks of business-friendly cities.

 

Sioux Falls, South Dakota(Start-Relocate a Business/Business Incentives)

Sioux Falls, like Bismarck, is enjoying a statewide boom in energy. One of this small city’s biggest assets is the incentive efforts that are made to welcome and grow businesses. The leadership is very creative with assistance to bring jobs to town. Starting or relocating a business in the city is a powerful way to take advantage a great small city in a state that offers outstanding tax rates.

 

Texarkana, Texas(Business Incentives/City to Watch)

By far the smallest city on our multi-category list, Texarkana has a unique history that makes it a city to watch. In the Panhandle, it is on the Arkansas border and very near the Louisiana and Oklahoma borders. Once home to the U.S. military’s largest weapons depot, this city has rail lines to spare and buildings that were literally built to withstand a bomb (or decades of business). The leadership offers amazing incentives and works with businesses to get them what they need. A tiny Texas giant, this is a city poised to lead the nation in growth.

 

Des Moines, Iowa(Quality of Life/City to Watch)

There are many nice cities, but Des Moines stands out. The moderate climate and Midwestern charm make it a great city to live in. The business climate continues to improve, making this gateway to the Plains a perfect place for any concern looking to bridge the distance between Chicago and the East and the energy of the Upper Plains states.

 

San Diego, California(NAFTA/USMCA/Skilled Workforce)

The largest city on the Mexico border, San Diego is the perfect place to do business with its southern neighbor and the nations farther south. Its climate and abundant activities attract more and more skilled workers every year. Easy access to the whole state of California, with 13 percent of the total U.S. population, makes San Diego a great place for business.

 

Bellevue, Washington(Quality of Life/Cities to Watch)

Green and lush like it’s big sister, Seattle, Bellevue is an ideal place to live. Sitting between two lakes, Lake Washington and Lake Sammamish, it’s a wonderful place for outdoor activities, still in the warm zone created by the Puget Sound. Microsoft, Amazon, Starbucks and all the other amazing businesses of Washington state are just a stone’s throw away. This is a city that is making room for the next wave of Washington innovation.

 

Buffalo, New York(NAFTA/USMCA/Skilled Workforce)

Buffalo sits on the very western edge of New York and at the leading edge of New England’s boom. Right on the Great Lakes and the heart of an East Coast Silicon Valley, Buffalo has more skilled workers per capita than most of the rest of the country. Many of these workers hail from New York state colleges and universities. The state’s incentive commitments are forging powerful partnerships with business.

 

LISTS BY CATEGORY

Rather than clog up the lists below with the repeat winners, we’ve pulled those cities out so we can highlight the great cities that win in their respective categories.

While each category has up to 10 winners, they are presented in no particular order as each offers its own assets, such as location, that make it unique for a business’ needs.

 

Top Export Cities

These are cities that make it easy to bring goods in and send goods out. Many have deep-water ports, or like El Paso have import/export assets that are outstanding.

-Houston, TX
-Los Angeles, CA
-New Orleans, LA

 

Top Financial Hubs

Banks, investment firms and stock brokers flock together to allow them to share information and often, because the city’s data capabilities are high enough to prevent a slowdown of information from around the world. Another significant reason to choose a city is its proximity to a growing industry that needs financial services.

-Richmond, Virginia
-Lincoln, Nebraska

 

Most Advanced Ports

The level of automation and quality of the dockside equipment in a port can hugely influence how quickly products are offloaded or put onto a ship. The ports on this list lead the nation in innovation, reliability and speed.

-Port of Long Beach, Port of Los Angeles
-Port of Savannah, Georgia
-Port of Virginia (Norfolk), VA
-Port Houston
-Port of Oakland Oakland, California
-Port of Charleston (South Carolina)

 

Intermodal Access

The ability to move from ship to train to truck to plane or any combination can mean the difference between shipments in days or weeks. The cities on this list provide the fastest and most intermodal access for shipments into or out of the United States. Some are located inland and allow for transport to the central part of the country. Others are coastal and act as the jump-off points to waters surrounding the country.

-Kansas City, Missouri
-Indianapolis, Indiana
-Columbus, Ohio
-Atlanta, GA
-Portsmouth, Virginia
-Elizabeth, New Jersey
-Little Rock, Arkansas

 

Start or Relocate a Business

This is the list of cities that are the best in the country for starting or relocating a business. Low start-up costs, an excellent business environment and plenty of qualified staff make these cities the ideal places to create a new global trade empire.

-Oklahoma City
-Missoula, Montana
-Billings, Montana
-Raleigh, North Carolina
-Grand Rapids, Michigan

 

NAFTA/USMCA Access

The latest update to NAFTA, the USMCA appears to be a modernization of the now 25-year-old agreement. The cities on this list provide a home base for any business seeking to work with the most important U.S. trading partners, Canada and Mexico. Most are near the borders, providing the ease of access to the U.S., while being ideally placed for shipments into and out of the northern and southern neighbors.

-Albuquerque, New Mexico
-Corpus Christi, Texas
-Fort Lauderdale, Florida
-Laredo, Texas
-Peoria, Illinois

 

Quality of Life

Business is important, but everyone needs to live some place that they love. This list represents the nicest places to live in the country. Where living is good, business is also excellent. Although not a strictly business category, the list compiles cities to consider if you need a great staff. Being someplace that people want to live makes it easier to attract great workers.

-Colorado Springs, Colorado
-Madison, Wisconsin
-Denver
-Huntsville, Alabama
-Portland, Oregon
-Las Cruces, New Mexico

 

Best Business Incentives

Incentives for businesses are thought of as being cash or tax credits, but many cities here offer many more diverse choices. Among them: free land or buildings, free education for staff, and many other attractive incentives.

-Omaha, Nebraska
-Salt Lake City
-Boca Raton, Florida
-Cleveland, IN

 

Skilled Workforce

Every business needs a great staff. In this era of near full employment, finding the right qualified staff can be a challenge. The cities on this list have a disproportionate number of educated laborers. For companies seeking a place to be that will give them the world’s greatest employees, these are places to be.

-Boston
-Washington, D.C.
-Milwaukee

 

Leading Southern Ports

The South is in the midst of a decade or more long boom. The area from Florida to Louisiana has some of the world’s greatest ports, providing a gateway to a powerful economic engine. These ports vary in size and volume, but all of them represent some of the best places in the world to move products into and out of the United States.

-Port Miami
-Port Everglades (Florida)
-Port Tampa (Florida)
-Port New Orleans
-Port Canaveral (Florida)
-Port South Louisiana
-Jacksonville Port Authority (Florida)

 

Small Markets (<100,000 population)

These small cities make a big imprint. Large cities are expensive and crowded, while these are small enough to be inexpensive, easy to move around in, and easy to be “a big fish in a small pond.” Look to these cities to be offered the respect you deserve.

-St. George, Utah
-Wilson, North Dakota
-Denton, Texas
-Bozeman, Montana
-Burlington, Vermont
-Ft. Myers, Florida
-Enid, Oklahoma
-Holland, Michigan

 

Cities to Watch

These are cities that deserve attention for their economic climate and the efforts that the leadership and the great citizens are putting in to make their cities great places in which to live and do business.

-Kenosha, Wisconsin
-Dumas, Texas
-Madison, Wisconsin
-Baltimore, Maryland
-Jersey City, New Jersey
-Fremont, California
-Odessa, Texas
-Birmingham, Alabama
-Reno, Nevada
-Irvine, California
-Marietta, Georgia
-Decatur, Illinois
-Little Rock, Arkansas
-Tulsa, Oklahoma
-Peoria, Arizona

Archives, Global Trade Daily, U.S. Ports

WE CAN’T CONTAIN OURSELVES

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As global trade continues to grow (albeit at a slower pace than the World Trade Organization initially projected for 2018), there are some ports that are already processing an impressive number of twenty-foot-equivalent units (TEUs). A TEU is a unit of measurement given to cargo capacity, based upon the volume of a 20-foot-long container. Height does not factor in when determining TEUs, though most containers range between four feet, three inches and 9 feet, six inches. When a port processes a TEU, one container counts as one TEU. When a port processes 9.3 million TEUs in a year like the Port of Los Angeles, that earns them the No. 1 spot on Global Trade’s Top 50 North American Container Ports.

But while some ports are already doing big business, a greater push for more efficient container ports is being applied across the continent. While many larger ports are already equipped to handle large vessels, many simply cannot accommodate the newer, larger Panamax-sized ships which are becoming increasingly more common thanks to new larger size limits allowed by the Panama Canal expansion. Super Panamax, Post Panamax and Neo Panamax vessels got their name from the Panama Canal Authority (ACP) in 1914, but newer requirements were enacted on June 26, 2016, when the Panama Canal opened its most recent set of locks.

Whether a vessel is Panamax, Neo Panamax, Super Panamax or Post Panamax is based upon the Panama Canal’s initial lock chamber dimensions of 1,050 feet long by 110 feet wide by 41.2 feet deep. These guidelines allow the ACP to determine whether a ship can pass through the canal, by factoring in the width and depth of the water in the available locks, as well as by the height of the Bridge of the Americas, which these ships must pass under on their way through the canal.

But Super, Post and Neo Panamax ships aren’t just larger, they’re more efficient, too, thanks to their ability to carry more cargo per trip. Unfortunately, all that efficiency is for naught if a port can’t accommodate that size vessel. The good news is that an increasing number of ports are expanding to accommodate these ships, investing millions of dollars to dredge deeper waterways and wider locks, expanding docks, adding cranes, extending existing rail and much more. Among those ports, many of the top 50 have gone above and beyond to expand and improve, earning them spots among the top 50 container ports by TEU in North America.

The Big Guys

The two largest ports by TEU are both located in the Golden State of California. With more than 9.3 million TEUs in 2017 alone, the Port of Los Angeles is the No. 1 port by volume in North America, with the Port of Long Beach not far behind with 7.5 million TEUs the same year.

So, what’s bringing so much cargo to the Left Coast? In addition to its capacity for larger Panamax ships and high volume shipments, the Port of LA’s proximity to Asian markets such as China, Japan, Hong Kong, South Korea, Vietnam and Taiwan that make it so popular. In fact, the 7,500-acre Port of LA alone processes 20 percent of the foreign cargo entering the United States.

Just nine miles south of the Port of LA, No. 2 ranked Port of Long Beach prides itself on being a popular cruise ship port as well as one of the “greenest” ports in the world. With its Green Port Policy initiative and more than 20 years of environmental protection programs, the Port of Long Beach strives to reduce its environmental footprint, encourage sustainability and protect the greater community from environmental impacts the port may make. As such, the port has invested $4 billion dollars toward efforts to become a zero-emissions port in the coming years.

Changing Infrastructure

One way North American ports are accommodating the new Super and Neo Panamax ships is by changing infrastructure and expanding ports to allow larger vessels to maneuver through locks with ease. The Port of Miami (No. 18) recently invested $1 billion into a major port overhaul and expansion, complete with channel widening (from 50 to 52 feet), $50 million dollars in rail improvements, and several super Panamax-capable cranes with 22-container outreach that are the biggest in the entire Southeast United States.

A $350 million-dollar expansion at the Port of Virginia (No. 7) is slated to be completed in 2019 and will include a brand new, 26-lane motor carrier gate, rail mounted gantry cranes (RMGs) to allow for higher container stacks, and various rail improvements. Not far up the coast, the Port of Baltimore is investing in several port-related projects around the city, including replacing the dilapidated Colgate Creek Bridge, which will expand access from the port to Interstate 95 for larger logistics trucks. A recent purchase of 70 acres of land will enable the port to store and process the increased amount of cargo coming off Super Panamax vessels. The expansion is expected to generate 1,650 new jobs for the city.

This past September, the Port of Georgia (No. 4) announced it would be investing $2.5 billion over the next 10 years to jump from its current capacity of 5.5 million, 20-foot TEUs to an impressive 8 million. It’s part of a whopping $14.1 billion in investments over the next five decades. For each dollar invested, the Port of Georgia expects a profit of $7.3 dollars to the U.S. economy.

Not too far north, the South Carolina Port Authority has committed $2.4 billion to deepen the Port of Charleston (No. 11) to 52 feet, making it the deepest port on the East Coast by the year 2021, and capable of an 8 million TEU capacity by 2028. Furthermore, the port plans to double its rail capacity by the year 2020. With a planned 180,000 additional feet of rail, the project is part of a strategy to cut 24 hours off transit time to the Midwest.

The Port of Philadelphia (No. 24), now known as PhilaPort, doesn’t just carry cargo but a rich history dating back to 1701 and the days of William Penn. But the 300+-year-old PhilaPort is anything but dated. Today, the port is undergoing improvements as part of a $300-million expansion authorized in 2016. The funds will be used to double PhilaPort’s container capacity, improve their PAMT terminal and increase the terminal’s capacity from 485,000 to 900,000.

Philaport is also undergoing a channel expansion which will bring the main channel from its current 40 feet to 45 feet to accommodate larger Super and Neo Panamax ships.

The Port Authority of New York and New Jersey (No. 3) is in the midst of a $4-billion expansion and improvement project that will make room for Super Panamax vessels, as well as their increased cargo load.

International Ports

The U.S. is not the only country with ports making big changes—and doing big business—in North America. Canada is also home to two notable ports. The Port of Vancouver (No. 6), which is the largest port in Canada and the sixth-largest in North America, boasts a decidedly global hub, while the Port of Montreal (No. 12) does much of its business with Europe.

The Port of Vancouver processes about 2.9 million TEUs each year. Located on Canada’s west coast in picturesque Vancouver, British Columbia, the Port of Vancouver contributes $24.2 billion CDN to Canada’s economy each year, supplying about 92,600 jobs in British Columbia and an additional 115,300 jobs across Canada.

On Canada’s east coast, the Port of Montreal processes more than 1.5 million TEUs annually and has recently entered a partnership with the Centre for Technological Entrepreneurship (CENTECH) and École de technologie supérieure (ÉTS) to create a “port logistics innovation unit.” The aim is to help address modern issues facing the port such as cybersecurity, supply-chain visibility and decarbonization and process improvement. The innovative program will be the first of its kind in North America.

The Port of Montreal also happens to be the closest port to Europe, and as such offers the shortest direct route of any North American port from Europe and the Mediterranean.

South of the U.S. border in the State of Colima, Mexico, is the Port of Manzanillo (No. 8), which processes more than 2.8 million TEUs per year. The largest port in Mexico, the Port of Manzanillo is the only container port from the country in the top ten. The port generates most of its business from iron ore, pectin, pickles (yes, pickles), cement and seafood products such as giant squid, swordfish, tuna and even shark.

Teaming Up

Much like the No. 3 ranked Port of New York and New Jersey, the Ports of Seattle and Tacoma have merged to create the Northwest Seaport Alliance, which has rounded out the top of the list at No. 5. In 2017, the Northwest Seaport Alliance processed more than 3.6 million TEUs, with a 15.6 percent increase in September 2018 over the prior year—the biggest increase in September volume since 2005. The port hopes to increase its annual TEUs from its current rate of 3.6 million annually to 6 million by the year 2025, generating 14,600 new jobs in the process.

In addition to being a major gateway for cargo from Asia and a major distribution point for cargo from Asia heading to the Eastern United States, the Northwest Seaport Alliance is also home to the Puget Sound, which has the strategic position of being an important gateway to Alaska. In fact, according to the Northwest Seaport Alliance, more than 80 percent of total trade volume between Alaska and the rest of the U.S. passes through the alliance’s North and South harbors.

New Ownership

This past September, the Port of Wilmington (No. 27) in Wilmington, Delaware, was sold to Gulftainer, a United Arab Emirates-based port operator on a 50-year concession. Gulftainer plans to invest $600 million into the improvement of the port. No stranger to North American ports, Gulftainer also currently operates Florida’s Port of Canaveral.

Of Gulftainer’s planned $600-million investment, $400 million would go toward a new, 1.2 million TEU container facility. Currently, the Port of Wilmington can process 600,000 TEUs. A new cargo terminal and training facility are also slated for development with the new concession.

 

Everything’s Bigger in Texas

The State of Texas is home to several major ports, including the Port Houston (No. 9) and Port Freeport (No. 39), both of which are undergoing expansions of their own.

Port Freeport is planning a major expansion which will deepen the port from its current 45 feet to 55 feet. It also will be lengthened to 2,200 linear feet to accommodate larger Post Panamax vessels. There are also plans at Port Freeport to expand operations from 125,000 TEUs to 800,000 TEUs each year with the addition of 90 acres of land that will be developed for container operations in the coming years.

Another current Port Freeport development is the Velasco Container Terminal, which upon completion will include another 130 acres of land where 1.5 million to 2 million TEUs will be processed annually. The Velasco Container Terminal will eventually house five Post-Panamax gantry cranes.

North of Port Freeport is inland Port Houston, which is undergoing some big changes of its own. Thanks to a $314 million budget approved in 2016 by the Port Commission, Port Houston is slated to undergo numerous repairs on existing properties. Current projects include rehabilitating Wharf Three to accommodate 100-gauge, ship-to-shore cranes, construction of 6,500 feet of railroad track and the demolition of several buildings and Lash Dock.

In addition to these improvements, Container Yard 7, which will span 50 acres of land, is being constructed at Port Houston. According to the facility’s website, the yard will boast reinforced and roller-compacted concrete pavement and will be fully equipped with water and sewer, stormwater collection, communication conduit and high-mast lighting.

Future plans for Port Houston include adding five security cameras, installing numerous drainage systems and conducting general repairs around the port.

Looking Ahead

These 50 North American container ports are leading the way in TEUs and making way for anticipated growth in the future. From updating security systems to survive in an increasingly “cyber” world, to fixing irrigation issues and repairing dilapidated structures, more and more ports are turning their focus to customer service, making their facilities more modern, efficient and comfortable.

Additionally, many ports are dredging deeper and wider channels to make room for larger Post Panamax, Super Panamax and Neo Panamax ships that are quickly becoming the norm. These ships don’t just enable shippers to ship more product at once, they also create a major savings in time and money for both the shipper and the ship. Plus, with fewer ships in the water, this larger class of Panama ships allows for a greener footprint, reducing emissions. Larger ships also mean more work unloading, and thus have the potential to generate more jobs, boosting local economies—and isn’t that what trade is all about?

 

 

 

 

 

 

 

 

 

 

 

Archives, Global Trade Daily, News

DHL GLOBAL TRADE BAROMETER CONTINUES TO FORECAST TRADE GROWTH, ALBEIT SLOWER

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Global trade continues to grow, according to October’s three-months forecast from the DHL Global Trade Barometer (GTB). The index for global trade now stands at 63 points, which is a decline of four points on the previous quarter’s forecast, indicating an overall slightly slower pace of growth. In the GTB methodology, an index value above 50 indicates positive growth, while values below 50 indicate contraction.

The overall slight reduction is largely driven by lower growth rates of air trade. The respective index value declined by eight points to 62. In contrast, the growth rate for global ocean trade merely decreased by one point to 63 points. Regarding the GTB’s seven constituent countries, this quarter sees a mixed picture with a threefold differentiation: India as the only country with simultaneously increasing and very high prospects for trade growth, the UK with an unchanged outlook, and all other countries with slightly diminishing prospects.

Despite intensifying global trade disputes, mainly between China and the U.S., these countries remain in growth mode, however, at a slower pace. American growth prospects slowed down by five points to 63, while the Chinese trade outlook decreased by four points to 59. Most other constituent countries witnessed decelerating trade dynamics, too: South Korea–still one of the previous forecast’s strongest growth drivers–saw its outlook reduced by five points to 69. Likewise, Germany’s trade growth forecast was reduced by six points to 58. The outlook for Japan went down by three points to 64.

UN REPORT: TRADE WAR THREATENS OUTLOOK FOR GLOBAL SHIPPING

The outbreak of trade wars and increased inward-looking policies threaten the prospects for seaborne trade, projected Mukhisa Kituyi, secretary general of the United Nations Conference on Trade and Development at October’s Global Maritime Forum’s Annual Summit in Hong Kong.

Kituyi’s warning while launching the 2018 edition of the UNCTAD Review of Maritime Transport came against a background of an improved balance between demand and supply that has lifted shipping rates to boost earnings and profits. Freight-rate levels improved significantly in 2017 except in the tanker market, supported by stronger global demand, more manageable fleet capacity growth and overall healthier market conditions.

Seaborne trade expanded by a healthy four percent in 2017, the fastest growth in five years, and UNCTAD forecasts similar growth this year, subject to Kituyi’s warning over trade and tariff wars: “Escalating protectionism and tit-for-tat tariff battles will potentially disrupt the global trading system which underpins demand for maritime transport.”

MYANMAR AT BOTTOM OF GLOBAL INDEX ON ILLICIT TRADE

The Transnational Alliance to Combat Illicit Trade (TRACIT) in October called for Myanmar to urgently step up efforts to fight illicit trade. Myanmar’s structural difficulties to effectively address illicit trade is evidenced in its very low score in the 2018 Global Illicit Trade Environment Index.

The index was produced by the Economist Intelligence Unit (EIU) and evaluates 84 countries on the extent they enable or prevent illicit trade. Myanmar ranks 82nd out of 84 countries evaluated, with an overall score of 23.0 (out of 100).

“This means that—apart from Iraq and Libya—Myanmar shows the poorest structural defense against illicit trade,” said TRACIT Director-General Jeffrey Hardy. “It also means we have a lot of work to do here, especially in the areas of illegal logging and mining, wildlife and human trafficking, spirits, beer and cigarette smuggling, and counterfeiting of all types of consumer goods.”

“We’re trying to solve illicit trade in all possible ways,” reported U Ko Lay, director of the Myanmar Ministry of Commerce. “But we need law and order first and that will pave the way for legal trade.”

COMMERCE UNDER SECRETARY SIGNS INDUSTRY COLLABORATION AGREEMENTS

Under Secretary of Commerce for International Trade Gilbert Kaplan met in Singapore with officials from the U.S. Chamber of Commerce, Singapore Business Federation (SBF) and Singapore Manufacturing Federation (SMF) in September to update and expand the Department of Commerce’s framework for U.S.-Singapore commercial collaboration.

The discussions were part of a broader trip that Kaplan led to India, Vietnam and Singapore to advance the U.S. government’s new Indo-Pacific Initiative by helping American companies navigate market challenges and by enhancing trade promotion efforts.

In his remarks, Kaplan emphasized that “our partnership with Singapore has been a great representation of the mutually beneficial outcomes we hope to accomplish throughout the broader Indo-Pacific region, especially with all of the gains we have seen since the United States and Singapore signed our bilateral free trade agreement 15 years ago. This includes the Commerce Department’s work with Singapore’s business organizations, who have been great friends and partners of the U.S. government and U.S. business community over the years.”

GPA APPROVES $92 MILLION RAIL EXPANSION

During a September meeting of the Georgia Ports Authority (GPA) board of directors in Atlanta, $92 million was approved for the Mason Mega Rail Terminal, a project that will double the Port of Savannah’s annual rail capacity to 1 million containers and deliver the largest on-terminal rail facility in North America by 2020.

“It is no accident the GPA is constructing rail capacity as the demand for rail is growing,” said GPA Board Chairman Jimmy Allgood. “As part of our strategic planning two years ago, our team identified the growing role intermodal cargo would play in GPA’s long-term success and put into place this plan for expansion.”

The GPA also announced it had moved 375,833 TEUs in August, an eight-percent increase over August 2017, while handling 86,200 intermodal TEUs represented a 33 percent jump.

PORT MANATEE, CARVER MARITIME INK LONG-TERM TERMINAL PACT

Port Manatee and Carver Maritime LLC in August entered a long-term marine terminal operating agreement for a 10-acre aggregate offloading facility at the Florida Gulf Coast port.

The Manatee County Port Authority-approved agreement lasts for as many as 20 years (including options) and ensures property lease payments totaling $1.8 million for the initial five-year term, in addition to wharfage payments for annual cargo throughputs.

“We, along with our customers, are excited about this opportunity, and very much look forward to a long and fruitful relationship with Port Manatee, as well as its tenants,” said Carver Laraway, president of Altamont, New York-based parent firm Carver Companies. “The projected growth of Central Florida and the business-friendly environment of Manatee County make us eager to call it home.”

Archives, Global Trade Daily, Imports/Exports

Budding Signs of Trade Diversification a Welcome Sign for Canada’s Trade

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There’s been much ado in Ottawa as of late regarding the promotion of free-trade ideals and the pursuit of a globalist agenda in economics.

The recent handshake agreement on a rebranded United States-Mexico-Canada Agreement (USMCA) has understandably been the preeminent focus of business and political observers. But setting aside momentarily that historic détente in Can-Am relations, there’s been a great deal of work taking place in Ottawa to establish the conditions that will enable and empower not just globalism but genuine trade diversification.

Most Canadian businesses – particularly those for which trade across the 49th parallel is integral to their livelihood – have been alarmed by how quickly trade relations between Canada and the U.S. have regressed over the past 18 months, and how closely the USMCA negotiations came to leaving Canada without a free trade agreement with the U.S.

And yet, it was with little fanfare that Canada’s Parliament recently gave royal ascent (the last step in the ratification process) to the Comprehensive & Progressive Agreement for Trans-Pacific Partnership or CPTPP. For the uninitiated, the CPTPP is a multilateral free trade agreement involving 11 Pacific Rim countries. Originally, the agreement (then dubbed the Trans-Pacific Partnership) was a 12-nation pact that included the United States. However, U.S. President Donald Trump withdrew from the agreement via executive order on his third day in office.

Fearing the proliferation of protectionism and looking to solidify strength in numbers in Asia against China’s rising hegemony, the remaining members of the TPP relaunched trade talks in a rather expeditious manner in 2017. One year later, not only have those talks concluded, but also the required six signatory countries formally ratified the agreement, allowing entry into force on December 30, 2018.

For Canada, participation in the CPTPP represents a further bet on multilateral trade and the pursuit of a free trade agenda that is meant not only to provide greater import/export options for Canadian businesses, but to reduce Canada’s dependence on trade with the United States. That agenda has reasonably been pursued with increased vigor given Washington’s hyper focus on Buy American trade policies, bi-lateral trade, and the elimination of trade deficits.

To be sure, Canada’s globalist trade agenda predates the era of Donald Trump and the rise of trade protectionism. It is evident in the 2016 signing of the Comprehensive Economic & Trade Agreement (CETA) with the European Union; an agreement that took seven years to negotiate under an air of cynicism and opposition on both sides of the Atlantic.

Some have argued that Canada-EU trade data under CETA is indicative of Canadian businesses’ vulnerability to compete in a multilateral environment. These detractors note that since CETA’s provisional application in September 2017, exports to the EU increased only a modest 3.3 per cent versus a 12.9 per cent increase in imports from the EU.

But a closer look reveals one-fifth of those new imports are made up of machinery, indicating  the buds of economic diversification, rather than a sign of global non-competitiveness. Machinery is most often imported to enhance production efficiency and make businesses more innovative and internationally competitive. The fact that this taking place in a less-than-favorable exchange rate environment for Canadian businesses is all the more encouraging.

Far from driving job loss, the imports are spurring employment growth. In the year following CETA’s implementation, Canada’s unemployment rate fell from 6.2% to 5.9%. Furthermore, employment in some of the sectors most affected by the top imports from the EU, such as, mining and health care has risen 4.13% and 0.75% respectively. Granted, employment in manufacturing did drop 1.37% during that period; however, that figure is likely made up of job losses due to automation as much as job losses due to lost business.

It is also reassuring that trade growth with the EU hasn’t been limited to the UK, traditionally Canada’s largest European trading partner. According to a CBC report in September, exports from Canada to European countries other than the UK, grew 6.9%. This is yet another sign that Canadian businesses are looking outside their traditional comfort zones for both sourcing and selling opportunities.

Precisely how widely used the CPTPP will be amongst Canadian businesses is anyone’s guess at this point. Like the CETA countries, the CPTPP group is made up of diverse economies. And, like the EU, trade with the CPTPP group will require a reliance on ocean freight, multi-lingual communication and packaging, as well as multi-cultural considerations for how products are marketed.

The path of least resistance for Canadian businesses would be to breathe a heavy sigh of relief that the North American bloc has been salvaged by USMCA and revert to tried and true trade relationships with existing supply chain partners. No one would blame them for doing so. And for many businesses – particularly smaller ones – keeping trade within North America might be the only realistic approach.

For many others, the CPTPP and CETA represent a historic opportunity for businesses to diversify their sourcing and selling markets, but also to plant seeds that will grow sales, encourage innovation and productivity, expand product portfolios and serve as insurance against current and future trade disputes. For those reasons alone, businesses should be setting their sights on leveraging Canada’s newly acquired free trade prospects.

Cora Di Pietro is vice president of Global Trade Consulting at trade-services firm Livingston International. She is a frequent speaker and lecturer at industry and academic events and is an active member of numerous industry groups and associations.

 

 

 

 

 

 

Archives, Global Trade Daily

Don’t Feel Entirely Helpless in Trade Volatility

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The great American humorist and author, Mark Twain, once quipped, “Be careful about reading health books. You may die of a misprint.” In today’s politically charged environment, we all could use a dose of comicalness. Or perhaps, Twain’s premise is an important guide for how to approach the overly published and greatly analyzed reports and commentary about the looming “Trade War.”

Pointedly, as a manufacturer, the Trump Administration’s trade policy cannot be evaluated through one report, a singular set of analytical data, or a forecaster’s prognostication about the future of the aluminum or steel markets. It is far more complex, and any manufacturer who has not already done so should be preparing for long-term volatility in the international trade market.

There is no debate that the United States is in an unprecedented and unchartered posture relative to its largest trade partners. One needs to look no further than the Trump Administration’s latest September announcement of a third round of 10 percent Chinese tariffs – bringing the total amount of impacted goods to approximately $250 billion or half of all imported Chinese goods.

With the Trump Administration placing a deadline of January 1, 2019, before the latest round of Chinese tariffs is raised to 25 percent, there is mounting fear of international, political and business consequences on the horizon. Additionally, the Administration is threatening another $267 billion that would essentially subject all imported Chinese goods to increased tariffs.

That said many observers believe that the Trump Administration is simply creating an environment conducive to a favorable new trade relationship with its trade partners. So, as a U.S. manufacturer who sources materials and products internationally, what are you supposed to do in the short- and long-term?

The simple answer is to focus on what you can control and to not sit idle. To that end, all U.S. manufacturers – big or small – should consider three explicit and proactive steps to protect their interest.

For one, companies should take advantage of the available exclusion processes. If granted, the exclusions apply retroactively to the date that tariff went into effect. The Commerce Department is tasked with reviewing exclusion requests for the Section 232 Steel and Aluminum tariffs. A product exclusion will be granted if the article is not produced in the United States 1) in a sufficient and reasonably available amount; 2) satisfactory quality; or 3) there is a specific national security consideration warranting an exclusion. There is no deadline for submitting, but the Commerce Department has received over 30,000 requests, so companies should evaluate their potential for the exclusion if they have not done so already.

Similarly, the United States Trade Representative (USTR) has provided a mechanism to request exclusions for the Section 301 (China) tariffs. But unlike the Section 232 requests, these are time sensitive. There is an October 9, 2018 deadline for the first round of tariffs, and a December 18, 2018 deadline for the second round of tariffs. Key considerations are whether 1) the product is available only from China or whether a comparable product is available from other sources; 2) the imposition of the tariff will cause “severe economic harm to the requestor,”; and 3) the product is strategically important to the “Made in China 2025” program or other Chinese industrial programs. The USTR has not released an exclusion process for the latest round of 10 percent tariffs, but industry groups are petitioning the USTR for a similar process.

Second, as good corporate hygiene, it is prudent for a manufacturer to regularly evaluate its existing contracts, including supply contracts. Now, it is even more critical, as existing supply contracts may provide relief resulting from tariff increase, price increase, force majeure or potentially even causes for termination of the agreement that can be invoked. Of course, to cancel or amend an existing supply contract is only functional if you can replace the imported good with another source for those materials. And, if you are entering into an amended, extended or new supply contract, it is important to incorporate key protection clauses to avoid major spikes in prices that would be damaging to your business model.

Third, if you haven’t already, as a manufacturer who is importing goods and materials, it is important to evaluate the classifications of the imported products. The classification of each product is the determinative factor as to whether it may fall in or out of the tariff order. Whether there is an accidental misclassification, an intentional misclassification by the overseas seller or a product that is within a gray area, an audit of the classifications of your imported goods will avoid unnecessary surprise, potential liabilities and could result in an avoidance of higher tariffs. If there is uncertainty, the manufacturer can request guidance from Customs.

There are some camps who will point to the incredible and sustained bull stock market as prima facia evidence that the Trump trade policy is not impacting the economy. There are others, such as the National Association of Home Builders, who has implored the administration to back off the aggressive trade policy as it is experiencing increasing cost and estimates the tariffs will translate into a $2.5 billion tax on the U.S. housing market. The only certainty we can count on regarding the Trump trade policy, whether short- or long-term in duration, is that now is the time to act and to do what is in your control to protect your interest.

 

Christopher Kane is a Partner and Global Trade, Transportation and Logistics Team Leader at Adams and Reese (New Orleans). He maintains a multi-faceted practice, counseling clients on economic development matters, transportation law, construction law, business litigation cases, governmental relations and professional athlete injury claims. In some ways, these areas overlap, and as a result, the regional, national and international clients he advises benefit. He may be reached at christopher.kane@arlaw.com.

Cole Callihan is an associate at Adams and Reese (New Orleans), whose practice encompasses maritime/transportation, trade and customs matters. He advises companies on their compliance with maritime and transportation laws and regulations before the US Coast Guard (USCG), the US Customs and Border Protection (CBP), the Maritime Administration (MARAD), the Federal Maritime Commission (FMC) and the Federal Motor Carrier Safety Administration (FMCSA). He can be reached at cole.callihan@arlaw.com.

 

 

Archives, Global Trade Daily, Software

Anders highlight how custom displays offer a robust, accessible and flexible solution

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Anders’ business model is continuing to evolve to service the demands of the marketplace. The company, who have become well known for distributing displays and supporting display applications, now place more of an emphasis on helping customers specify their own customized LCD, TFT or Embedded displays. Foreseeing a greater demand for customized displays in the industry, Anders has optimized the company to be able to provide a greater level of support to customers who wish to develop a customized display, including managing the complete manufacturing process, from concept to finished product, with the company’s Asian manufacturing partners.

The transformation may appear sudden, but it is something the company has been working towards over a number of years, gradually adapting its value proposition to stay ahead of the industry curve.  As off-the-shelf displays have become commoditised, there is a growing gap in the market to provide comprehensive technical and engineering support for more sophisticated display and embedded display applications through customized hardware and software solutions.

This evolution of business priorities has allowed Anders’ to grow and optimize its in-house engineering expertise and use the experience that the company has gained over decades to replace the non-technical middlemen found in the industry, and provide a direct conduit between customers and their Asian manufactures. Anders can assume full control over the design, development and manufacturing process to make customer access to customized displays as pain free as possible.

 

Why choose to customize a display?

The vast majority of products today use some kind of display. For some devices, such as mobile phones or tablets, the display is almost the only way to interact with it. As time passes, more and more functionality has moved from electromechanical devices, like switches and buttons, to the screen itself.

There is a wealth of options available for designers that wish to buy a display off-the-shelf, including size, resolution, brightness, contrast, and touch technologies. Even with these choices, many companies underestimate the complexity of integrating the display hardware and software into the product. This complexity can include designing the perfect touch experience to coping with ESD problems, ensuring the design is robust and rugged with exact mounting options for ease of installation or selecting the correct connectivity options for the application. Every aspect of the integration process has the potential to shorten the product’s usable lifetime or, in the worst case, lead to a complete redesign.

 

Do you not want more?

With all the choices available, many companies have started asking, what differentiates my product from any other?

When the screen is the most visible feature of a product, designers who buy off-the-shelf displays from the same list of suppliers and use the same included software face the risk of competing products start to look and feel alike.

Forward thinking companies quite rightly want to put their own stamp on their products, and that is more than a logo on the start-up screen. A distinct look can help users tell the manufacturer at a glance. Other companies have products that are not suitable for the generally available screen ratios or sizes, or have applications that require more or less powerful electronic processors, or different mounting options. For those companies, a customised display is an ideal solution. But, are these displays not much more expensive?

Anders’ customers often state, a decision driven by price achieves only short-term gain and in reality brings long-term pain. Off-the-shelf displays offer no real advantages for the majority of applications. Cost-effective, customized displays are usually the smarter option for the longer-term. Specifying the display and processor to suit each specific product can help initially, as many companies are forced to over-specify displays or electronics, resulting in too much processing power or too many unnecessary features on the display for the application requirements, resulting in a higher cost solution that is actually needed.

There is also the question of obsolescence. Today’s displays and supporting electronics are designed for the consumer market and its short product life cycle. The majority of product designs in the industrial world are intended for much longer use. For those products, a component’s obsolescence could mean a costly redesign of the product. By specifying the display from the start, designers can choose products that have guaranteed availability for much longer periods, ensuring component supply for the whole product life cycle.

What is crucial, is specifying the product correctly and knowing the components that manufacturers have committed to supplying over the longer term. This is not always an easy task as there are a bewildering amount of different combinations to consider, and making a single wrong choice could lead to the expensive redesign that the customized solution was meant to avoid. Making the correct choices takes experience, so forming a partnership with an expert in the subject matter is the best way to ensure the completed specification is right first time.

It’s even better if that partner, who is now familiar with the requirements of the design, also has the contacts and expertise in the Chinese market to oversee the manufacture of the product. Anders has experts on-hand with decades of experience in both specifying displays and supporting electronics, as well as managing complex manufacturing projects in China for every type of application and vertical market. The company’s design-led focus will allow more of those experts to work directly with customers, and provide a broader range of support and services, which will ensure a seamless route from initial product specification to completed manufacturing.

 

About Anders

Anders Electronics plc. is a display and embedded display design specialist, dedicated to making electronic touchscreen technology safer, simpler and more enjoyable to use.

Over 30 years ago, Anders started designing, developing, and delivering customized display solutions, for the non-consumer industry, and haven’t stopped innovating since! Anders features a history of reliability and innovation and lives to solve display engineering challenges.

Anders harnesses their expertise in display, embedded computing and touch control technology to help differentiate their customer’s products through exceptional design and engineering.

For further information, please visit:  https://www.andersdx.com/

Anders will be on display at the forthcoming Engineering Design Show, 17 – 18 October 2018 (http://www.engineering-design-show.co.uk/) at the Ricoh Arena in Coventry.  Stop past booth number G30 to speak to one of product designer engineers.  We are here to help you bring your touchscreen and embedded display technology to life.  We are the people behind the screen.

 

 

Archives, Global Trade Daily, In The News

Trump Administration Trade Battles Continue

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There have been several important developments in regard to (1) U.S. use of Section 301 of the Trade Act of 1974 to restrict imports of various products from China and (2) U.S. imposition of global trade restrictions on steel and aluminum imports pursuant to Section 232 of the Trade Expansion Act of 1962.  The Trump Administration asserts that the former are justified as a result of unfair intellectual property policies and practices maintained by China and that the latter are necessary to prevent emerging threats to U.S. national security.  As summarized below, the conflict between the United States and China continues to intensify, but there are signs that the Administration is looking to de-escalate the global conflict over steel and aluminum.

Developments in the U.S.-China Trade Relationship

On June 15, the Office of the U.S. Trade Representative (“USTR”) issued two lists of Chinese goods that would be subject to a 25 percent tariff surcharge as a result of its Section 301 investigation.  The first list covered approximately $34 billion in goods and was comprised of machinery and mechanical appliances; electrical equipment; vehicles, aircraft, vessels, associated transport equipment, and parts thereof; and measuring, checking, precision, medical or surgical instruments.  The second list covered approximately $16 billion in goods and was comprised of lubricants; plastics; machinery and mechanical appliances; electrical equipment; locomotives, vehicles, and parts thereof; and measuring instruments.  The duties for the goods on the first list were imposed starting July 6, while those for the goods on the second list were imposed starting August 23.

Shortly after USTR’s June 15 announcement, China announced its intention to retaliate against the United States by imposing a 25 percent tariff surcharge on certain U.S. goods being imported into China.  China issued two lists of targeted goods, with the first list covering agricultural products, cars, and aquatic products, and the second list covering mineral fuels, chemical products, and medical machinery.  The duties for the goods on those lists were imposed starting July 6 and August 23, respectively.

President Trump responded to China’s retaliatory measures by ordering USTR to develop an additional list of $200 billion worth of imports from China to be subject to a 10 percent tariff surcharge.  Shortly after that announcement, China promised to fight back with “qualitative” and “quantitative” measures.  On August 3, China announced new duties in the range of 5-10 percent on imports from the United States valued at $60 billion, and those duties were imposed starting September 24.

On September 18, USTR issued its third list of Section 301 tariffs, covering approximately $200 billion worth of imports from China, dwarfing the value of imports covered by the first and second lists.  The products targeted are subject to an additional tariff of 10 percent, effective September 24, which increases to 25 percent starting January 1.  The list contains 5745 tariff lines, covering a wide range of products, including live animals and animal products; vegetable products; prepared foodstuffs; mineral products; chemical products; plastics and rubbers; rawhides, skins, and articles thereof; wood and articles of wood; paper; textile articles; headgear; articles of stone, ceramic, and glass; pearls; base metals and articles thereof; mechanical and electrical equipment; vehicle parts; photographic and cinematographic equipment; and miscellaneous manufactured articles.  On October 12, U.S. Customs and Border Protection (“CBP”) confirmed that imports from China that qualify for reduced or suspended duties under the recently signed Miscellaneous Tariff Bill will still face the specified Section 301 tariffs.

USTR has established a process by which U.S. stakeholders (such as purchasers or importers) may request the exclusion of particular products from Section 301 tariffs covered by the first two tranches.  Notably, the notice for the third list did not indicate that there would be an exclusion process.

The deadline for requests regarding the first list lapsed on October 9, but the deadline for the second list is December 18.  USTR prefers electronic submissions made through the Federal eRulemarking Portal: www.regulations.gov.  Exclusion requests should include certain information, including the following: the applicable 10-digit subheading of the HTSUS; physical characteristics that distinguish the proposed excluded product from other products within the covered 8-digit subheading; the ability of CBP to administer the exclusion; the annual quantity and value of the Chinese-origin product that the requester has purchased in each of the last three years; and the percentage of total gross sales in 2017 accounted for by sales of the Chinese origin product.

Section 232 Tariffs on Steel and Aluminum

In March of this year, the Administration announced global tariffs on imports that it found to threaten U.S. national security – a 25 percent tariff on steel and a 10 percent tariff on aluminum.  Several countries negotiated their own deals to avoid the tariffs.  Australia is exempt entirely but is likely to be monitored for import surges.  Argentina, Brazil, and South Korea are subject to quotas (not tariffs) on steel.  Argentina has a quota for aluminum, but Brazil and South Korea did not reach a similar agreement and therefore are subject to the tariff on aluminum without any quantitative restriction.

The original, global Section 232 actions can be adjusted on a country-by-country basis.  For example, in August, the tariff for imports of steel from Turkey was increased to 50 percent in response to the depreciation of the Turkish lira – the concern there was that the depreciation of the lira had made imports of Turkish products less costly and thereby undermined the effectiveness of the original Section 232 tariffs.  Canada and Mexico are reportedly negotiating for quotas to replace the Section 232 tariffs as early as this November.  And the Administration recently notified Congress of its intent to negotiate trade agreements with Japan and the European Union, which could involve quotas to replace Section 232 tariffs.

The product exclusion process has been a key focus since imposition of the Section 232 measures.  Product exclusions may be requested by U.S. stakeholders on a rolling basis.  According to the Commerce Department, a product exclusion will be granted if the article is not produced in the United States in a sufficient and reasonably available amount or at a satisfactory level of quality, or if there is a specific national security consideration warranting exclusion.  The product exclusion process was recently extended to imports from the quota countries.

The Administration has made some important changes to the product exclusion process since it was established.  First, domestic companies can seek “expedited relief from quantitative limits” for existing supply contracts.  Second, since early September, rebuttals (responses to objections) and surrebuttals (responses to rebuttals) are allowed and the Commerce Department has facilitated tracking of requests through its website (www.commerce.gov/page/section-…).  Third, parties are now permitted to submit confidential business information in support of requests or comments.  These last two changes were implemented in response to significant criticism of the process from companies and Congress.

At present, over 3,500 exclusions for steel and aluminum products have been granted (about 10 percent of posted requests).  In all but a few cases, the exclusions that were granted had been unopposed.

How Does a Company Take Advantage of a Product Exclusion?

As of today, the Administration has not granted any requests for exclusion from the Section 301 tariffs on imports from China.  The Administration has, however, indicated that such exclusions would be effective for one year upon publication of the exclusion determination in the Federal Register, apply retroactively to July 6 for products on the first list and to August 23 for products on the second list, and cover all imports of the product in question.  (As mentioned above, no product exclusions are planned for the third list, but Congress is raising concerns with the Administration on this point.)

For product exclusions from the Section 232 measures, requestors must closely track the regulations.gov dockets (Steel 232 docket BIS-2018-0006 and Aluminum 232 docket BIS-2018-0002) for the status of requests.  Once granted, an exclusion is valid for one year and is limited to the product description, quantity, supplier(s), and country(ies) of origin as defined in the request.

After a decision is posted, the Commerce Department notifies CBP, but the importer of record is nevertheless required to inform CBP in advance of importation.  More specific guidance on claiming an exclusion can be found at CSMS #18-000378.  If an exclusion is granted, companies are eligible for a retroactive refund of Section 232 tariffs back to the date the request for exclusion was posted for public comment at regulations.gov.

It is especially important to remember that, other than with respect to the first list of products covered by the Section 301 tariffs, U.S. stakeholders who believe a product should be excluded from the application of Section 232 or Section 301 tariffs may still be able to file an exclusion request.

 

Written by:  Matthew R. Nicely, Dean A. Pinkert, Julia K. Eppard and James Ton-that at Hughes Hubbard & Reed LLP