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U.S. Accelerates Brewing Dregs and Waste Exports to Asia

brewing
Archives, Global Trade Daily, Imports/Exports, News

U.S. Accelerates Brewing Dregs and Waste Exports to Asia

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IndexBox has just published a new report: ‘U.S. – Brewing Or Distilling Dregs And Waste – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

American brewing dregs and waste exports remain buoyant, growing by +4.5% y-o-y to $2.3B in 2020. A slump in shipments to Mexico, the leading importer of brewing dregs from the U.S., was offset by increased supplies to the Asian countries. Purchases by Mexico, Viet Nam and South Korea constitute 39% of the total volume exported from the U.S. The average export price for brewing dregs and waste increased by +2.9% y-o-y to $212 per tonne in 2020.

American Exports of Brewing Dregs and Waste

Exports of brewing dregs and waste from the U.S. rose modestly to 11M tonnes in 2020, increasing by +1.6% y-o-y. In value terms, exports grew by +4.5% y-o-y to $2.3B (IndexBox estimates) in 2020.

Mexico (1.7M tonnes), Viet Nam (1.3M tonnes) and South Korea (1.3M tonnes) were the leading destinations for brewing dregs and waste supplied from the U.S., together comprising 39% of the total export volume. These countries were followed by Indonesia, Thailand, Turkey, Japan, Canada, Ireland, the Philippines, China, New Zealand and Taiwan (Chinese), which together accounted for a further 44%.

In 2020, American supplies to Viet Nam (+7.0% y-o-y), South Korea (+1.3% y-o-y), Indonesia (+1.3% y-o-y), Thailand (+46.4% y-o-y) and (China (+55.4% y-o-y) increased significantly. By contrast, exports to Mexico dropped by -14.2% y-o-y.

In value terms, Mexico ($383M), Viet Nam ($285M) and South Korea ($272M) appeared to be the largest markets for brewing dregs exported from the U.S. worldwide, together accounting for 40% of total exports. These countries were followed by Indonesia, Thailand, Turkey, Japan, Canada, Ireland, the Philippines, China, New Zealand and Taiwan (Chinese), which together accounted for a further 43%.

The average export price for brewing dregs and waste from the U.S. stood at $212 per tonne in 2020, surging by +2.9% against the previous year. In 2020, the countries with the highest prices were Thailand ($230 per tonne) and Viet Nam ($222 per tonne), while the average prices for exports to Canada ($169 per tonne) and Turkey ($199 per tonne) were amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Thailand, while the prices for the other significant destinations experienced more modest paces of growth.

Source: IndexBox Platform

refrigerator market
Archives, Global Trade Daily, News

4 Pivotal Trends Driving Refrigerator Market Growth through 2027

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The refrigerator market size is poised to register substantial proceeds over the ensuing years, propelled by the surging demand for VCM sheets owing to their fingerprint resistive coating and superior finish. Numerous industry players are rolling out new models with VCM sheet refrigerators for catering to the rising product demand.

For instance, in March 2021, Samsung Electronics launched the 4-Door Flex refrigerator series. The most recent array comprises the Family Hub, Bespoke, and Stainless Steel that serve as the latest bid of Samsung for catering to consumers in the unprecedented new norms of the day.

Owing to similar advancements and as per the latest research by Global Market Insights, Inc., the refrigerator market share is expected to surpass USD 150 billion by 2027 end.

However, the market supply chain has been impacted due to the coronavirus pandemic on account of the shut down of electronics manufacturing industries, affecting the sales of refrigerators in 2020. The manufacturers faced difficulties in order fulfillment and product deliveries, leading to the decline of revenue in the first quarter of 2020.

Owing to disturbed supply chain, escalated logistics challenges, and increased lead times, industry participants are persistently monitoring product development strategies for the mitigation of risks and impelling refrigerator industry expansion through the estimated period.

Some of the prominent trends that are likely to push the demand for different types of refrigerators are as follows:

Increasing R&D in Europe

The European refrigerator market value is expected to register considerable growth over the projected period, driven by the presence of numerous refrigerator manufacturers comprising Liebherr Group, Electrolux AB, and BSH Hausgerate GmbH.

These organizations are playing a vital role in R&D investment initiatives for the development of new products incorporating an array of advanced technologies.

Soaring demand for electronic-controlled refrigerators

Electronic-controlled refrigerators are set to witness high demand across the globe impelled by their multiple benefits including wireless monitoring and precise temperature control. Driven by the surging demand, companies are focusing on the launch of innovative and electronically controlled refrigerators for strengthening their position in the market.

Considering an instance, in October 2020, Motorola rolled out new Motorola smart refrigerators with an initial price of nearly USD 700 and a capacity of up to 592L.

The rising popularity of smart refrigerators

The smart refrigerator demand is propelled by the escalating consumer preferences towards connected home appliances that have improved capabilities and features. Meanwhile, the rising smartphone and internet penetration is anticipated to support the adoption of smart refrigerators in households.

Reversible door refrigerators are expected to depict a high growth potential owing to their ability to provide convenient side opening for the minimization of user efforts. In addition, these refrigerators provide aesthetic appeal to kitchens.

Corporate strategies of major market players

Key participants in the refrigerator industry comprise Bosch Group, Electrolux AB, Samsung Electronics, LG Electronics, Inc., Siemens AG, Whirlpool Corporation, Haier Group Corporation, Panasonic Corporation, Midea Group, and Liebherr Group, among others.

These companies are introducing new products with improved features by making use of state-of-the-art Industry 4.0 technologies. To cite an instance, in January 2020, LG and Samsung introduced AI-powered refrigerators at CES 2020. The products are equipped to identify food.

In a nutshell, an escalation in the standard of living of consumers and an increase in consumerism are expected to boost the demand for fresh food, thus stimulating refrigerator market share through the analysis period.

Source: Global Market Insights, Inc.

sourcing trade
Archives, Global Logistics, Global Trade Daily, News

“New Kid on the Block” Networking Platform Addresses Sourcing Amid Supply Chain Crisis

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Best known for bringing manufacturers, reps, and merchants together, B2B networking platform company, Factrees, announced the release of its newest platform aimed at addressing nearshore sourcing bottlenecks amid the supply chain shipping crisis.

Driven by the power of artificial intelligence, the newly launched platform provides a reliable resource library consisting of searchable U.S. manufacturers, independent sales reps, distributors, wholesalers, and retailers for customers to select for sourcing. Companies can network and connect based on product lines, territory, services offered, and business relationships.

“We are creating a sourcing community that simplifies and expedites the process of finding quality sourcing partners while reducing the dependency on word-of-mouth and tradeshow marketing for driving growth,” said Keith Williams, Factrees Co-Founder and CEO.

“Factrees is the new kid on the block,” he adds.

Adding to the platform’s appeal is the option for companies to share their experiences with manufacturers and distributors — including reviews, ratings, and the option of messaging and real-time video meetings.

“There is a groundswell of realignment between manufacturers and sales representatives,” said Ron Smith, President & CEO of Curtis Stout. “Factrees is offering valuable tools; a professional approach to connect and match all manufacturers with quality sales agents.”

Through a series of straightforward and simplified steps, companies can utilize the platform and begin connecting once a profile has been created and claimed. This process supports efforts in getting products to customers from the factory.

“I have been in the industry for 30 years. Factrees is a very creative concept supported by a very helpful web interface, said Paul Entwistle, COO Hardware Industry. “I believe those who use it will have an advantage over those who don’t.”

To learn more, visit: www.factrees.com

magnesium
Archives, Global Trade Daily, News

Approaching Magnesium Deficiency Threatens to Disrupt the European Auto Industry

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IndexBox has just published a new report: ‘World – Magnesium – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Limiting industrial carbon dioxide emissions in China has halted work in two-thirds of Shaanxi’s fifty magnesium plants, while the rest of the factories will be required to halve production. As a result, in the next six months, the global market may face a deficit, hitting the European automotive industry particularly hard. The German Non-Ferrous Metals Association (WVM) calls on the German government to begin negotiations with China to increase magnesium supplies to Europe.

Key Trends and Insights

Over the next six months, a deficit is expected in the world magnesium market. China, the primary supplier of magnesium, is cutting production in order to reduce greenhouse emissions as part of a comprehensive program to reduce energy consumption. According to IndexBox estimates, China accounts for 87% of world production and 81% of the total exports, so a marked reduction in supply in the country will be a shock to the global market.

In the Shaanxi Province, a critical magnesium-producing region in China, 35 of the 50 magnesium plants have been shut down to date. The rest of the factories were forced to cut production in half to save energy. In September of this year, the Yulin Municipal Development and Reform Commission (Shaanxi Province) introduced restrictions that require businesses to suspend or reduce production intensity by 50-60%, depending on the level of energy consumption of the company and the amount of its carbon dioxide emissions.

The world market reacted to the introduction of restrictive measures in China with a jump in prices. European average magnesium prices surpassed the $4,500 per tonne mark in early September, a peak since 2008, while back in June, they were at $2,800 per tonne (according to IndexBox estimates).

The automotive industry, consuming 35% of magnesium produced worldwide, could suffer from the metal shortage. The European market is almost entirely dependent on Chinese supplies, which cover 95% of the total demand for the metal since there is no domestic production within the EU. It is expected that the current reserves of magnesium in Europe, and Germany in particular, a key importer of this metal, will be exhausted by November 2021.

A cross-industry group of associations issued an urgent call for action against the imminent risk of European production shutdowns due to a possible suspension of supply chains. This letter has been signed by European Aluminium, Eurometaux, Eurofer, ECCA, IMA, ESTAL, Metals Packaging Europe, CLEPA, EuroAlliages, EUWA, and the European Automobile Manufacturers’ Association (ACEA), representing the 15 major Europe-based automobile manufacturers including BMW, Toyota, Volkswagen, Honda, Hyundai and Ferrari. Earlier, the German Non-Ferrous Metals Association (WVM) has sent a similar letter to the German government calling for negotiations with China to increase magnesium supplies to the EU.

Global Magnesium Production

Global magnesium production dropped to 1M tonnes in 2020, with a decrease of -7.5% on the previous year. In value terms, magnesium production declined from $3B in 2019 to $2.8B in 2020 estimated in export prices.

China (900K tonnes) constituted the country with the largest volume of magnesium production, comprising approx. 87% of total volume. Moreover, magnesium production in China exceeded the figures recorded by the second-largest producer, Russia (60K tonnes), more than tenfold. The third position in this ranking was occupied by Brazil (20K tonnes), with a 1.9% share.

Global Magnesium Exports

Global magnesium exports fell to 385K tonnes in 2020, waning by -9.8% against the previous year. In value terms, magnesium exports shrank from $1.2B in 2019 to $1.1B in 2020.

China prevails in magnesium export structure, recording 311K tonnes, which was approx. 81% of total exports in 2020. The U.S. (11K tonnes), Turkey (9.4K tonnes), Germany (9.3K tonnes), the Czech Republic (6.7K tonnes), Russia (6.7K tonnes) and Taiwan (Chinese) (5.8K tonnes) took a little share of total exports.

In value terms, China ($759M) remains the largest magnesium supplier worldwide, comprising 72% of global exports. The second position in the ranking was occupied by Turkey ($39M), with a 3.7% share of global exports. It was followed by the U.S., with a 3.4% share.

In 2020, the value of supplies from China and the U.S. dropped by -15.6% y-o-y and -15.3% y-o-y, respectively. By contrast, Turkey increased exports in value terms twofold.

In 2020, the average magnesium export price amounted to $2,747 per tonne, waning by -3.8% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Turkey ($4,110 per tonne), while China ($2,442 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Russia, while the other global leaders experienced more modest paces of growth.

World’s Largest Magnesium Importers

The purchases of the twelve major importers of magnesium, namely Canada, Germany, the U.S., Japan, South Korea, India, Taiwan (Chinese), Norway, France, Austria, Romania and Russia, represented more than two-thirds of total import. Mexico (8.6K tonnes) held a minor share of total imports.

In value terms, the largest magnesium importing markets worldwide were the U.S. ($156M), Canada ($92M) and Germany ($89M), with a combined 38% share of global imports.

Source: IndexBox Platform

inflation
Archives, Global Logistics, Global Trade Daily, Special Reports

More Than Half of Retail Businesses are Using Inflation to Price Gouge

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As the economy recovers from the COVID-19 pandemic, inflation has surged in recent months affecting both retailers and consumers gearing up for the holidays.

In November, Digital.com surveyed 1,000 retail owners and executives to discover how inflation is impacting profitability, pricing, and discount offers this shopping season.

Our findings revealed that more than half of retail businesses are using inflation to drive up prices higher than what’s necessary to offset increased costs.

Key Findings

-56% of retail businesses say inflation has given them the ability to raise prices beyond what’s required to offset higher costs

-Over half of retailers have increased prices by 20% or more on average

-52% of businesses are offering fewer or no discounts this holiday season

-Shrinking discounts and increasing price of complementary products are most popular ways businesses are driving up prices

56% of retail businesses have increased profits beyond inflation to boost profitability

When asked how recent inflation has impacted profitability, 56% of retail businesses responded that inflation gave them the ability to raise prices beyond offsetting costs.

Large enterprises (LEs) were more likely than small and medium-sized businesses (SMBs) and small and medium-sized enterprises (SMEs) to say they were using inflation to more than offset costs at a rate of 63% compared to 52% of SMBs and 55% of SMEs.

“What’s interesting about our findings is that more than half of respondents say that while they used inflation as a reason for price increases, they expect higher profits as a result,” says Digital.com’s small business expert, Dennis Consorte.

“In other words, businesses are inflating already inflated prices in order to turn a bigger profit amid people’s fears over uncertain times.”

Automobile, e-commerce, and electronics industries most likely to hike prices

Our survey revealed that the automobile, e-commerce, and electronics and appliances industries were most likely to be capitalizing on inflation.

Of the businesses we surveyed who belonged to the automobile industry, 72% indicated they raised prices to more than offset costs. Sixty-five percent of e-commerce and 62% of electronics and appliances businesses also admitted to price gouging.

Over half of retailers have increased prices by 20% or more

Eighty-five percent of businesses have increased prices, and 55% of retailers have increased prices by 20% or more on average.

Of those who have increased prices, 28% of large enterprises increased prices 50% or more, compared to 6% of SMEs and 12% of SMBs.

When asked why they have increased prices, 66% of businesses cited rising inflation, 69% supply chain issues, and 57% increased demand.

52% of businesses are offering fewer or zero discounts this holiday season

This holiday season, 38% of businesses will offer fewer discounts than last year, and 14% will not offer any at all.

Smaller businesses are offering fewer discounts this holiday season compared to larger enterprises. Fifty-seven percent of SMBs and 56% of SMEs say they plan to offer fewer or no discounts, compared to 36% of LEs.

It comes as no surprise to Consorte that many small businesses are offering fewer discounts this year.

“Many small businesses are still recovering from lockdowns and other COVID mandates. With the Omicron variant upon us and inflation at a 30-year high, decision-makers feel uncertain about future revenue. For them, fewer discounts could be seen as a way to keep the doors open through the holiday season.”

Clothing and accessories (74%), electronics and appliances (66%), and furniture and home furnishings (57%) are the industries that are most likely to be offering fewer discounts this holiday season.

Businesses are increasing price of complementary products, shrinking discounts

Among businesses that have increased prices, 55% shrank discounts, and 48% increased the price of complementary products.

Furniture and home furnishings (51%), health and personal care (50%), clothing and accessories (50%), and electronics and appliances (45%) are the industries that are most likely to have shrunk discounts.

The industries most likely to have raised the price of complementary products include automobile (61%), building material, gardening equipment, and supplies (46%), electronics and appliances (45%), and health and personal care (43%).

Businesses are also using pricing tactics such as shrinkflation, increased surcharges, and bundling to drive up prices.

“We’re still in a period of fear and uncertainty about the economy and legislative responses to COVID-19. We can expect unusual pricing tactics for as long as this continues. Some merchants will continue to raise prices out of fear, while others will take advantage of their customers’ fears to realize higher profit margins. When the Zeitgeist of our time returns to baseline, so too will merchants in their pricing methodologies,” says Consorte.

Methodology

All data found within this report was derived from a survey commissioned by Digital.com and conducted online by survey platform Pollfish. In total, 1,000 U.S. retail business owners and executives were surveyed. Appropriate respondents were found via a screening question. To qualify for the survey, each respondent had to own a retail business or be an employed executive at a retail business. This survey was conducted on November 18, 2021. All respondents were asked to answer all questions truthfully and to the best of their abilities. For full survey results, please email julia@digital.com.

This article originally appeared here. Republished with permission. 

EDI
Archives, Global Trade Daily, Software

EDI’s Role and Evolution through Technological Advances

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Designed to automate the processing of information in a “zero paper” perspective, electronic data interchange (EDI) has not stopped moving forward since its inception. Thanks to the numerous advantages it offers in terms of business collaboration, it has become a seemingly indispensable tool within companies. But on a concrete level, what is EDI? How has the technology evolved over the years? Let’s look together at the uses of EDI over time. 

 

How EDI works: definition and regulatory context

 

What is EDI? 

In principle, electronic data interchange (EDI) can be likened to a dialogue between two computers and pursues a very simple goal: to exchange electronic documents between trading partners. By replacing paper document exchanges, electronic transactions have made it possible to significantly reduce human intervention. From this point of view, EDI, therefore, offers companies numerous advantages:

-Greater speed and reliability in processing information

-Reduction of operational costs

-Reduced errors and improved relationships between trading partners

For the exchange of data to be structured, it is essential to adopt a common standard recognized by the parties.

The format matters

Inevitably, along with electronic data processing comes the need to use a standard format that enables the system to read and understand the documents received. This format defines the type and form of the expected information, for example: integer, decimal, dd/mm/yy, etc. In this way, it is possible to share a common language used by the sender’s computer system and that of its recipient.

EDI standards 

There are numerous EDI standards, including ANSI X12, UN-EDIFACT (and its many variants EANCOM, GALIA…), VDA, TRADACOM, etc., and each of them has defined its own syntax and data dictionary. New standards based on the XML metalanguage have since been added to these historically popular standards, just as has been the case with HL7 industry standards used in healthcare or generic frameworks such as UBL, eb-XML, and UN-CEFACT. In addition, each standard includes numerous variants such as ODETTE or EANCOM for EDIFACT, resulting in ANSI version 5010 or EDIFACT version D12, Release A.

Before companies can exchange their electronic documents, they must therefore choose a common standard and version. Most of the time, they then use an EDI translator to automatically convert data from internal software or an application service provider.

Internet and XML metalanguage put EDI to the test

In the last decade, the overwhelming spread of the Internet and XML metalanguage have had a considerable impact on EDI. EDI/B2B software houses have taken advantage of these technological advances by aiming to facilitate the use of this tool within companies. In addition, all recent developments in EDI interoperability standards are based on XML syntax and use API-type exchange protocols.

EDI emerges as an online service 

The first commercial offerings of outsourced EDI type became popular in the early 2000s. These platforms had the advantage of outsourcing all EDI exchanges to external companies, regardless of the partners, systems and file formats involved. SaaS (Software as a Service) therefore made it possible to eliminate the many obstacles that held back EDI implementation.

EDI in Saas greatly simplifies the uses of this new technology. It can be used without major investment, to the great benefit of cost optimization. You can send or receive messages directly in the format of your ERP without the need for resources or an in-house EDI expert.

B2B integration: what’s the future for EDI? 

By automating the inter-company core business, B2B integration allows different stakeholders (customers, suppliers, business partners) to work more streamlined and efficiently.

Also known as B2B gateways, these integration solutions differ from the first generations of EDI platforms in that they bring a general, rather than a technical, view of the core business. By ensuring that different formats are taken care of, and multi-protocol transmission is possible, these B2B gateways allow you to model your core business processes and provide tailored monitoring. All of a company’s complex processes are thus integrated into a single platform. In addition, these B2B integration solutions can be offered on-premise for on-premises use, or in the cloud and thus be accessible from anywhere, such as Generix EDI Services.

Although process management or data processing engines are generally open to all use cases and formats, some EDI service providers have chosen to verticalize their solution for certain core businesses – this is what is happening in banking, healthcare, and supply chain. This allows them to speak the same language as the users and focus on each industry’s practices regarding data format, process type or security challenges.

Undeniably, the uses of EDI have evolved greatly since its inception, particularly due to the technological advances made since 2000. Thanks to APIs and blockchain, there is no shortage of prospects for further evolution, making EDI more than ever a solution of the future that can improve the efficiency of multi-company collaboration.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission.

abs copolymers
Archives, Global Trade Daily, News

Robust China’s Demand Drives ABS Plastic Exports from South Korea

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IndexBox has just published a new report: ‘Republic of Korea – Acrylonitrile-Butadiene-Styrene (ABS) Copolymers In Primary Forms – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

South Korea remains the world’s largest supplier of primary ABS copolymers, accounting for 46% of global exports. Robust demand from China propels the growth of South Korea’s shipments. In the first seven months of 2021, the export value increased by +60% against the same period of 2020. Last year, ABS copolymer exports from Korea reached $2.1B. China, Hong Kong SAR and Turkey constitute the leading importers of Korean ABS plastics. In 2020, the average ABS copolymer export price country’s amounted to $1,521 per tonne, down by -7.9% against the previous year.

South Korea’s ABS Copolymer Exports by Country

South Korea is the world’s largest supplier of primary ABS copolymers, accounting for 46% of global exports. In the first seven months of 2021, South Korea exported 759K tonnes of primary ABS copolymers worth $1.76B, a 60%-increase in value terms against the same period of 2020.

In 2020, ABS copolymer exports from South Korea declined to 1.3M tonnes, approximately mirroring 2019 figures. In value terms, ABS copolymer exports dropped from $2.2B in 2019 to $2.1B (IndexBox estimates) in 2020.

China (499K tonnes) was the leading destination for ABS copolymer exports from South Korea, accounting for 37% of total exports. Moreover, ABS copolymer exports to China exceeded the volume sent to the second major destination, Hong Kong SAR (120K tonnes), fourfold. Turkey (80K tonnes) ranked third in terms of total exports with a 6% share. In value terms, China ($725M) remains the key foreign market for ABS copolymer exports from South Korea, comprising 35% of total exports. Hong Kong SAR ($178M) occupied the second position in the ranking, with an 8.7% share of total exports. It was followed by Turkey, with a 5.9% share.

In 2020, the average annual growth rate of exports value sent to China totalled +5.2%. Exports to the other significant destinations recorded the following average annual rates of export growth: Hong Kong SAR (-20.4% per year) and Turkey (+3.2% per year).

In 2020, the average ABS copolymer export price amounted to $1,521 per tonne, falling by -7.9% against the previous year. Average prices varied noticeably for the major overseas markets. In 2020, the countries with the highest prices were Mexico ($1,721 per tonne) and the U.S. ($1,663 per tonne), while the average price for exports to China ($1,452 per tonne) and Malaysia ($1,460 per tonne) were amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Hong Kong SAR, while the prices for the other significant destinations declined.

Source: IndexBox Platform

tariff GSF shippers carbon
Archives, Global Shippers 101, Global Trade Daily, International Trade

C.H. Robinson: Millions at Stake for Shippers Awaiting Decision on China Tariff Refunds

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Businesses importing from China may get a second chance to take advantage of Section 301 tariff exclusions, which were designed to provide financial relief, adding up to thousands or even millions of dollars in savings for companies, on some products being imported to the U.S. from China. At the start of 2021, a majority of these tariff product exclusions expired, increasing duty fees for shippers, and adding strain in an elevated supply chain cost environment. Now, these tariff savings are back on the table for consideration.

USTR Comment Period is Open Until December 1

About one week remains to petition the United States Trade Representative (USTR) to reinstate 549 of these expired product exclusions, which would introduce retroactive refund potential for shippers. If the USTR rules to reinstate the refunds next month, shippers would be able to file for refunds as far back as October 15. In that two-month period alone, there is potential for millions of dollars in retroactive duty refunds, and that doesn’t include the future savings these exclusions could provide shippers who are likely not going to see supply chain congestion and shipping cost relief even as 2022 begins.

When considering whether to reinstate the exclusions, the USTR will focus primarily on factors such as changes in the global supply chain, domestic product availability and effort spent on domestic sourcing by importers, and whether there is adequate domestic capacity for producing the product in question in the U.S.

What This Means for Shippers

Not only does this targeted tariff exclusion process provide a financial opportunity for shippers now, but it also introduces the potential for additional exclusions to come to light in the future, according to recent statements by the USTR. However, many current trade measures are not expected to change soon. The office has acknowledged that trade reform between the U.S. and China is ongoing as the relationship evolves with the new administration.

Still, the potential for reinstated refunds next month presents an opportunity for shippers to better understand their financial position, discover what they may be able to reclaim, and determine what impact that may have on their shipping operations.

To help provide shippers with an information advantage, C.H. Robinson has developed an automated U.S. Tariff Search Tool. The tool streamlines what can otherwise be hours of tedious tariff data analysis. Shippers can input their organization’s HTS codes and receive information about their eligibility under the tariff exclusions as well as better understand their total landed cost analysis – including their costs to import, recovering duties previously paid, and reducing their duty exposure via trade agreements.

Shippers can submit comments to the USTR at this webpage: Home (ustr.gov) and get more information on the impact this could have on the trade community here: Recent Trade & Tariff Perspectives | C.H. Robinson (chrobinson.com).

FTZ
Archives, Foreign Trade Zones, Global Logistics, Global Trade Daily, Imports/Exports

QAD Precision Launches Complimentary Foreign-Trade Zone Cost/Benefit Analysis

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QAD Precision, an industry-leading provider of global trade and transportation execution solutions, today announced a complimentary Foreign-Trade Zone (FTZ) Cost/Benefit Analysis. This analysis calculates the cost savings manufacturers and distributors could realize by leveraging the Foreign-Trade Zones program. QAD Precision is a division of QAD Inc.

Under the US Foreign-Trade Zones program, goods imported into an FTZ are considered to be outside the US commerce and customs territory. As a result, no duties are paid on imports until such time as the goods enter US commerce. Should goods be exported from the FTZ, no import duties are paid. 

“Companies that establish and operate an FTZ must adhere to significant compliance requirements around inventory controls. With our free FTZ Cost/Benefit Analysis, organizations can discover the value FTZ can bring to their bottom line,” said Corey Rhodes, President of QAD Precision.

QAD Precision Foreign-Trade Zone was developed in collaboration with senior consultants and FTZ practitioners to create a user-friendly and configurable  FTZ Inventory Control and Recordkeeping System (ICRS). QAD Precision FTZ ensures compliance with FTZ regulations while lowering FTZ administration costs.

“Most companies considering an FTZ do so in order to defer import duties or eliminate the need for duty drawback. However, the Cost/Benefit Analysis will help uncover other opportunities for cost savings, such as relief from inverted tariffs and reduced Merchandise Processing fees and brokerage fees,” added Mr. Rhodes. “With QAD Precision FTZ, companies can slash import costs while accelerating supply chain velocity.”

To book a complimentary FTZ Cost/Benefit Analysis, please schedule a consultation online or contact an FTZ expert at +1 251-445-1363 or +1 251-445-1385.

________________________________________________________________________

About QAD Precision – Trusted Global Trade and Transportation Execution

QAD Precision, a division of QAD Inc., provides industry-leading global trade compliance, and multi carrier transportation execution solutions from a single, integrated platform. An ISO-certified company, QAD Precision assists companies to streamline their import, export and transportation operations, optimize deliveries, and increase logistics ROI. QAD Precision’s scalable and extensible solution easily integrates with existing ERP and WMS solutions. Industry leaders in every region of the world rely on QAD Precision’s global support centers to leverage thousands of carrier services and manage millions of global trade and shipping transactions every day. For more information about QAD Precision, visit www.qadprecision.com.

About QAD – Enabling the Adaptive Manufacturing Enterprise

QAD Inc. is a leading provider of next-generation manufacturing and supply chain solutions in the cloud. Global manufacturers face ever-increasing disruption caused by technology-driven innovation and changing consumer preferences. In order to survive and thrive, manufacturers must be able to innovate and change business models at unprecedented rates of speed. QAD calls these companies Adaptive Manufacturing Enterprises. QAD solutions help customers in the automotive, life sciences, consumer products, food and beverage, high tech and industrial manufacturing industries rapidly adapt to change and innovate for competitive advantage.

Founded in 1979 and headquartered in Santa Barbara, California, QAD has 30 offices globally. Over 2,000 manufacturing companies have deployed QAD solutions including enterprise resource planning (ERP), demand and supply chain planning (DSCP), global trade and transportation execution (GTTE) and quality management system (QMS) to become an Adaptive Manufacturing Enterprise. To learn more, visit www.qad.com or call +1 805-566-6100. Find us on Twitter, LinkedIn, Facebook, Instagram and Pinterest.

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

sunflower
Archives, Global Trade Daily, News

Ukrainian Sunflower Oilcake Suppliers Enjoy Surging Demand in China

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IndexBox has just published a new report: ‘China – Sunflower Oilcake – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

Over the last year, China increased its sunflower oilcake imports from 1.4M tonnes to 2.2M tonnes. In value terms, the imports skyrocketed by +51.3% y-o-y to $588M. Ukraine dominates Chinese sunflower oilcake imports, with a 97%-share of the total volume. The supplies from Ukraine gained $170M last year. The average sunflower oilcake import price in China fell by -3.5% y-o-y to $269 per tonne in 2020.

Chinese Sunflower Oilcake Imports by Country

In 2020, approx. 2.2M tonnes of sunflower oilcake were imported into China, picking up by +51% against 2019. In value terms, sunflower oilcake imports surged by +51.3% y-o-y to $588M (IndexBox estimates) in 2020.

In 2020, Ukraine (2.1M tonnes) was China’s main sunflower oilcake supplier, accounting for a 97% share of total imports. It was followed by Bulgaria (50K tonnes), with a 2.3% share of total imports.

In value terms, Ukraine ($571M) constituted the largest supplier of sunflower oilcake to China, comprising 97% of total imports. The second position in the ranking was occupied by Bulgaria ($13M), with a 2.2% share of total imports. In 2020, the average annual rate of growth in terms of value from Ukraine totalled +42.2%.

In 2020, the average sunflower oilcake import price amounted to $269 per tonne, reducing by -3.5% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was Ukraine ($270 per tonne), while the price for Bulgaria amounted to $262 per tonne. In 2020, the most notable rate of growth in terms of prices was attained by Bulgaria.

Source: IndexBox Platform