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Belgium Sharply Increases Imports of Additives for Lubricating Oils

lubricating oils
Archives, Global Trade Daily, Imports/Exports

Belgium Sharply Increases Imports of Additives for Lubricating Oils

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

In 2020, Belgium’s imports of additives for lubricating oils rose substantially from 88K tonnes in 2019 to 145K tonnes in 2020. In value terms, imports grew to $436M. France, Italy and the U.S. dominate the Belgium’s imports, with a combined 80%-share of the total volume. All these countries ramped up their exports to Belgium significantly last year. The average import price of additives for lubricating oils dropped by -17.1% y-o-y to $3,018 per tonne.

Belgium’s Imports of Additives for Lubricating Oils

In 2020, approx. 145K tonnes of additives for lubricating oils were imported into Belgium, growing by +64% on 2019 figures. In value terms, additives for lubricating oils imports increased by +64.0% y-o-y to $436M (IndexBox estimates) in 2020.

In 2020, France (68K tonnes) constituted Belgium’s largest supplier of additives for lubricating oils, with a 47% share of total imports. Moreover, imports from France exceeded the figures recorded by the second-largest supplier, Italy (31K tonnes), twofold. The U.S. (17K tonnes) ranked third in total imports with a 12% share.

In 2020, imports from France rose by +37% y-o-y. Italy ramped its exports to Belgium by +81% y-o-y, while the U.S. increased the supplies fivefold.

In value terms, France ($195M), Italy ($109M) and the U.S. ($58M) were the largest suppliers to Belgium, with a combined 83% share of total imports. These countries were followed by the Netherlands, Germany, the UK and Mexico, which together accounted for a further 15%.

In 2020, the average import price for additives for lubricating oils amounted to $3,018 per tonne, declining by -17.1% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Italy ($3,490 per tonne), while the price for the UK ($1,904 per tonne) was amongst the lowest. In 2020, the Netherlands attained the most notable price growth rate, while the prices for the other significant suppliers experienced a decline.

Source: IndexBox Platform

acetic acid
Archives, Global Trade Daily, News

India’s Acetic Acid Imports Doubled in the Past Decade

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

In the past decade, India doubled acetic acid imports in physical terms. In 2020, they grew by +7.7% y-o-y to 953K tonnes. Malaysia, Singapore and China constitute the most significant suppliers, accounting for 70% of India’s acetic acid imports. Taiwan featured the highest growth rate of exports to India in 2020. Last year, the average acetic acid import price dropped by -22.9% y-o-y to $349 per tonne.

India’s Acetic Acid Imports by Country

India’s acetic acid imports increased twofold, from 457K tonnes in 2010 to 953K tonnes in 2020. In 2020, imports grew by +7.7% on the previous year’s figure. In 2020, imports grew by +7.7% on the previous year’s figure. In value terms, acetic acid imports dropped notably from $401M in 2019 to $333M (IndexBox estimates) in 2020.

Malaysia (294K tonnes), Singapore (220K tonnes) and China (153K tonnes) were the leading suppliers of acetic acid imports to India, with a combined 70% share of total imports. These countries were followed by Taiwan (Chinese), Saudi Arabia, Iran and South Korea, which together accounted for a further 28%.

Taiwan saw the highest growth rate of export volume among the key exporters. Indian imports from Taiwan rose from $50M in 2019 to $136M in 2020.

In value terms, the largest acetic acid suppliers to India were Malaysia ($104M), Singapore ($79M) and China ($53M), together comprising 71% of total imports. These countries were followed by Taiwan (Chinese), Saudi Arabia, Iran and South Korea, which together accounted for a further 27%.

The average acetic acid import price stood at $349 per tonne in 2020, waning by -22.9% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the highest prices were recorded for prices from Singapore ($358 per tonne) and South Korea ($355 per tonne), while the price for Iran ($326 per tonne) and Saudi Arabia ($337 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by China, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

payments
Archives, Banking, Global Trade Daily

How Streamlining Payments Helps Build Vendor Relationships

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I’d like to dispel some common misconceptions about B2B payments. First, the misconception that vendors don’t want to be paid by check. Next, let’s dispel the notion that vendors won’t take card payments.

I’ve worked in payments for a couple of decades now. I’ve managed cash handling, check processing, and lockbox operations. I’ve spent the last 10 years or so in the Mastercard B2B space. Based on my experience, I can tell you what vendors really want: convenience and choice.

Doesn’t everyone?

New choices

It used to be that the customer could dictate a payment method and vendors had no choice but to accept. That has been slowly changing. We saw a lot more vendors raising their hands to ask for electronic payments during the COVID-19 Pandemic, but this shift began even before that. Fintech companies have introduced a lot of new payment options, and vendors are more aware that they have choices.

It now falls to buyers to give vendors the convenience and choice they want, without overburdening their accounts payable departments. That means using automation to streamline payment and vendor enablement workflows. AP can then easily accommodate all payment types and let vendors choose what’s most convenient for them.

Different definitions of convenience

When vendors want to be paid by check, it’s often because they have some sort of mechanism that makes it easy to process them. In larger companies for example, that often means using their treasury bank to do lockbox processing for them. Banks will often provide this service for free to win other, more profitable business.

The bank collects all the checks from the lockbox, keys in the data and deposits them. All accounts receivable has to do is absorb a file that has all of the check data. That is a pretty clean process, and a compelling reason to be paid by check.

What about ACH? There’s no paper to handle, and the vendor gets the money faster. Why wouldn’t they want ACH payments? Well, ACH fraud is on the rise, and not all vendors want to risk exposing their banking data to their buyers.

Vendors might actually prefer a single use credit card. The common wisdom against that thought is that vendors won’t want to pay credit card fees. The reality is that virtual cards are gaining in popularity because you get paid fast and fraud risk is low. You don’t have to expose your banking data, and the card number becomes unusable once it’s been processed. For some vendors, that’s worth the fee.

No limits

The point is there’s a market for all payment types. For a buyer to limit themselves to just one or two payment options is to potentially limit whom they can do business with. With all the supply chain problems we’ve been experiencing it’s incredibly important to keep your vendors happy. The best way to do that is to make sure they get paid on time, in the manner of their choosing.

The problem, as many AP teams learned during the pandemic, is that doing electronic payments at scale is a lot harder than it seems at first glance.

You need to have the resources to enable vendors for electronic payments, on an ongoing basis. That means continual outreach to find out which vendors will accept a card or an ACH. It means collecting and verifying their banking data when you onboard them, and having processes in place to verify any requests to change bank account information. It means having a way to know if a virtual card payment hasn’t been processed, and a way of dealing with a card that is still open.

You also need very strong systems and processes in place to protect your organization against ACH fraud. If you’re not up to speed on using technology to validate and secure vendor information, and fend off fraud attacks, you’re putting your organization at risk.

AP teams already tend to be short-staffed. Turnover is high, and the amount of process documentation they have is low. They don’t have the capacity to take on this extra work.

Here’s where it gets good: AP teams shouldn’t have to take on extra work to make electronic payments work. The whole process can be streamlined by working with a payment automation provider. Automation providers typically provide a single workflow for all types of payments. All the person in AP has to do is select who to pay, and the provider will pay each vendor by their preferred method.

More importantly, automation providers take on all the work of enablement, including outreach and safeguarding vendor data. They also indemnify their customers against fraud. It couldn’t be more streamlined–all AP really has to do is click pay.

Convenience and choice for all

Checks have been the prevalent B2B payment method for a very long time, and for some very good reasons. The COVID-19 Pandemic, and our current supply chain woes, have made many organizations reconsider check use.

Vendors are increasingly aware that they do not have to let the buyer dictate how they get paid. Vendors now know that they are able to come to buyers and say, “We’ve got three payment options for you to choose from,”.

Fintech companies are providing new choices for buyers, too. Payment automation lets them offer vendors convenience and choice, without inconveniencing themselves. It’s a win-win, and that is the best possible way to build a relationship.

_____________________________________________________________________

Kim Lockett is Vice President of Customer Success and Services for Nvoicepay, a FLEETCOR company. She has more than 30 years of experience in payments, with a heavy focus on back-office operations and customer engagement. Prior to Nvoicepay, Kim held operations management and leadership positions with Comdata, Crestmark Bank, and Regions Bank.

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

China Dislodges Malaysia from American Microwave Oven Supply Chains

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

Despite global logistical tensions amid the sharp container shortage, the U.S. continues to boosts microwave oven imports. Last year, American purchases spiked by +16.3% to $1.6B, reaching the highest level ever. In the first seven months of 2021, American imports reached 12.9M units, exceeding last year’s 12.1M units over the same period. China dominates American imports, supplying 95% of the total volume. In 2020, Chinese shipments to the U.S. jumped by +29% y-o-y to 22M units, while Malaysia saw a 19%-decline in supplies. Chinese microwave ovens thus drive out Malaysian products from the American market. 

American Microwave Oven Imports

In 2020, microwave oven imports into the U.S. surged to 23M units, increasing by +25% against the previous year’s figure. In value terms, microwave oven imports rose by +16.3% y-o-y to $1.6B (IndexBox estimates) in 2020. In the first seven months of 2021, American purchases reached 12.9M units against 12.1M units imported over the same period of 2020.

In 2020, China (22M units) was the main microwave oven supplier to the U.S., with a 95% share of total imports. Moreover, microwave oven imports from China exceeded the figures recorded by the second-largest supplier, Malaysia (1.2M units), more than tenfold.

In physical terms, Chinese supplies rose by +29% y-o-y in 2020. This year, imports from China continue to grow: over the first seven months of 2021, Chinese import volume reached 12.2M units, exceeding by +6.7% the figures of the same period of 2020.

Imports from Malaysia fell by -18% y-o-y last year. In the first half of 2021, Malaysian supplies tended to decline.

In value terms, China ($1.5B) constituted the largest supplier of microwave ovens to the U.S., comprising 89% of total imports. The second position in the ranking was occupied by Malaysia ($156M), with a 9.5% share of total imports.

In 2020, the average microwave oven import price amounted to $70 per unit, shrinking by -6.9% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Malaysia ($132 per unit), while the price for China stood at $66 per unit. In 2020, the most notable rate of growth in terms of prices was attained by Malaysia.

Source: IndexBox Platform

aluminum
Archives, Global Trade Daily, News

India Emerges as Third-Largest Aluminum Supplier to China

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

Last year, China’s aluminum imports skyrocketed from $511M to $3.8B. Malaysia, Russia and India became the largest aluminum suppliers, with a combined 52%-share of China’s imports. Over the last year, the imports from Russia rose thirteen times, while the purchases from Malaysia increased nearly fivefold. India emerged as the third top supplier, moving from the seventh place it held in the previous year. In 2020, the average aluminum import price dropped by -6.2% y-o-y to $1,659 per tonne.

China’s Aluminum Imports by Country 

In 2020, the amount of aluminum imported into China jumped from 0.3M tonnes in 2019 to 2.3M tonnes. In value terms, aluminum imports surged from $511M to $3.8B (IndexBox estimates) in 2020.

Malaysia (422K tonnes), Russia (413K tonnes) and India (362K tonnes) were the main suppliers of aluminum imports to China, together accounting for 52% of total imports. South Korea, the United Arab Emirates, Indonesia, Viet Nam, Italy, Thailand and Australia lagged somewhat behind, together comprising a further 32%.

In value terms, Russia ($737M), Malaysia ($657M) and India ($638M) were the largest aluminum suppliers to China, together accounting for 53% of total imports. South Korea, the United Arab Emirates, Indonesia, Viet Nam, Thailand, Italy and Australia lagged somewhat behind, together accounting for a further 30%.

Over the last year, the supplies from Russia increased thirteen times, from $56M to $737M. Imports from Malaysia grew nearly fivefold. India boosted its aluminum exports from $25M to $638M, moving from the seventh place in the largest supplier ranking to the top-three.

In 2020, the average aluminum import price amounted to $1,659 per tonne, which is down by -6.2% against the previous year. Average prices varied somewhat amongst the major supplying countries. In 2020, the highest prices were recorded for prices from Australia ($1,800 per tonne) and Russia ($1,785 per tonne), while the price for Italy ($1,400 per tonne) and Thailand ($1,486 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Thailand, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Global Trade Daily, News

Germany’s Candle and Taper Imports to Hit Record High this Year

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

Germany is rapidly increasing its imports of candles and tapers. In the first seven months of 2021, Germany imported 84K tonnes of candles worth $230M. These figures exceed the last year’s 67K tonnes worth $163M imported over the same period. Poland remains the prime trade partner, supplying 58% of candle and taper volume imported to Germany in 2020. In physical terms, German purchases from Poland grew by +7.0% y-o-y last year.

Germany’s Candle and Taper Imports

In the first seven months of 2021, Germany purchased abroad 84K tonnes of candles, exceeding by 25% the last year volume of the same period. In value terms, Germany’s imports grew by +41%, reaching $230M.

As of 2020, candle and taper imports into Germany rose modestly to 171K tonnes in 2020, increasing by +4.3% against the previous year’s figure. In value terms, they grew by +5.2% y-o-y to $429M (IndexBox estimates) in 2020.

Poland (100K tonnes) constituted the largest candles and tapers supplier Germany’slast year, with a 58% share of total imports. Moreover, candles and tapers imports from Poland exceeded the figures recorded by the second-largest supplier, the Netherlands (23K tonnes), fourfold. China (16K tonnes) ranked third in terms of total imports with a 9.4% share.

In 2020, the average annual growth rate in volume from Poland stood at +7.0%. The remaining supplying countries recorded the following average annual imports growth rates: the Netherlands (+3.0% per year) and China (+1.2% per year).

In value terms, Poland ($199M) constituted the largest supplier of candles and tapers to Germany, comprising 46% of total imports. The second position in the ranking was occupied by China ($47M), with an 11% share of total imports, and it was followed by the Netherlands, with an 11% share.

The average candle and taper import price stood at $2,504 per tonne in 2020, approximately equating to the previous year. Average prices varied somewhat amongst the major supplying countries. In 2020, the countries with the highest prices were China ($2,875 per tonne) and Belgium ($2,450 per tonne), while the price for Poland ($1,990 per tonne) and the Netherlands ($2,008 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Portugal, while the prices for the other significant suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Global Trade Daily, International Trade

Take note: Address Global Trade Issues Early in Your Negotiations to Avoid Liability and Costs (Yes, this applies to you).

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Premise: Nearly all companies have exposure to international trade laws when doing business. Spotting these risks early when negotiating agreements and transactions will prevent future liability and costs. So, when drafting agreements engaging in mergers or acquisitions, and conducting diligence parties, should be considering a number of important trade risk points that may be sprinkled throughout various business activities.

“Supply chain” is the buzzword right now for a reason, it’s an area where trade liabilities are growing significantly. On top of backups and slowdowns, additional tariffs or duties (import taxes) can make importing from certain locations more expensive than it once was, and more restrictions are being added to this already highly regulated activity. New ESG and human rights restrictions along with an expanding list of prohibited parties make planning a supply chain more challenging than ever. Additionally, if done incorrectly, the penalties associated with customs violations can be quite high, or, in a worst-case scenario, your shipments can also be seized and even destroyed without compensation.

Trade Controls Are Broader Than You Think 

Always screen your transaction for other tangential cross-border issues. If the company is directly or indirectly supplying the U.S. government with goods or services under a procurement agreement, ensure someone has reviewed whether any relevant Buy America criteria are met. Enforcement is on the rise so include proactive requirements for antiboycott compliance and anti-corruption representations in agreements and ensure training is being done as needed for both employees and third parties to decrease the risk of violations. Most trade-related rules and regulations apply to U.S. persons and U.S. companies both directly and indirectly. For example, if a third-party distributor sells your product to a person in Iran without required authorization – you can be liable.

Importing is Getting More Complicated

Before you commit to acquiring, merging with, or working with any business, ensure the security of its supply chain and that it is reporting the correct country of origin, classification codes, and other required information properly. Confirm that it has all relevant IP rights and that there are no infringing marks being used, and determine whether any anti-dumping or countervailing duties might apply to the imported product. If it turns out that additional, high tariffs are due – not only may penalties be imposed, but the government will also demand interest on its unpaid revenue. So, when drafting agreements consider representations from parties to minimize risks of wrong or missing information, changing regulations, and government enforcement cases, limit your liability if possible, and choose INCOTERMS (contract terms that determine which party has responsibly shipped goods at any time during the shipping process) wisely to limit exposure.

Sanctions Apply To all of Your Customer and Supplier Relationships

Like import regulations, U.S. sanctions prohibitions and restrictions are also expanding at a steady rate. To protect yourself and your business in this dynamic and fast-changing environment, ensure that any target companies or business partners already have sanctions compliance programs and are pro-actively complying with economic sanctions and associated mandatory requirements. This is an area in which you want to limit successor and indirect liability, as penalties can be extremely high. You don’t want to learn after the fact that your business partner has been buying inputs from or selling your product to a restricted party in China. So, for your own best interest, take the initiative to educate your partners as needed and get your information and inspection rights regarding the supply chain, indirect sales, and distribution network in writing.

Export Requirements Can Apply in the US Too

Similarly, export laws also carry a specific set of risks and liabilities for exporters. Filing and licensing requirements are complex and the rules apply broadly to all U.S. origin goods and technologies (even online only and SaaS products). Ensure that any target company or potential business partner has determined the correct export classification for its products and technology before you commit to investing, acquiring, or merging. Look out for red flags that products are being transshipped to countries without the proper authorizations. Similarly, if you are going to contract with an agent or distributor, make sure they understand export compliance because your liability does not end when you hand over the product.

Further, export classifications are no longer something companies only need to know if they export physical products to locations outside of the U.S. Export controls is also implicated if you share technology domestically in the U.S. with foreign nationals. and export classification can be a determining factor in whether a CFIUS (Committee on Foreign Investment in the U.S.) filing to the Department of Treasury is required before closing a deal – and this filing requirement may apply regardless of whether the target company exports at all.

Update Your Agreements and Compliance Materials

The government is expanding its enforcement initiatives and broadening its scope of review in corporate criminal enforcement cases. Thus, it is worth your time to slow down and do your homework to avoid bigger problems later. Talk to your Colleagues. Identify whether if you are already addressing these issues, and if not, create a plan to work trade reviews into your regular processes and workflows.

Don’t let simple compliance actions slip through the cracks. If you have compliance materials- read them and ensure they are up to date and are useful to protect the company. If not work with someone familiar with the risks and the law to update, retool, or enhance them.

Make your materials practically employable, set a tone at the top that compliance procedures are taken seriously, and ensure your standard agreements include trade provisions to minimize your risk. Once you’re comfortable that you have a solid compliance program or transaction checklist well-tailored to your business activities, complete an internal audit at set intervals to make sure that it’s being used and working.

Addressing trade risks before closing a transaction or signing a contract may save you not only from headaches but from getting to know the U.S. authorities all too well.

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Abbey Baker, counsel at Lowenstein Sandler LLP, works with businesses and entrepreneurs seeking to expand their market position in the global economy while considering national security, trade regulation, and foreign policy concerns.

Doreen M. Edelman is the chair and founder of the Global Trade & Policy practice. She has more than 30 years of experience advising clients on the risks associated with export controls, customs matters and U.S. sanctions in cross-border M&A and investment transactions, and on the compliance requirements pertaining to technology, software, defense articles and services, and commercial goods.

drivers
Archives, Global Logistics, Global Trade Daily, Trucking

Moving Forward: The Critical Need to Support Truck Drivers

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“Disruption” may have been 2020’s word of the year. Both the coronavirus and the economy impacted lives, leaving no industry untouched. When the nation’s GDP hit bottom in Q2 2020, it essentially wiped out any economic gains generated over the previous five years.

While the trucking industry was affected by logistics and supply chain issues and personnel shortages last year, many analysts have predicted a strong recovery. Since mid-year last year, freight demand has continued to regain its momentum. Trucking companies still face several challenges, however, the greatest of which is its long-standing struggle to recruit, train, and retain enough professional drivers to meet demand.

The economy’s recovering — but driver shortages remain

According to the latest ATA survey on driver turnover, rates:

-Fell to 87% in Q1 2021 from 90% in 2020 at large for-hire truckload carriers ($30M+ annual revenue).

-Increased from 69% to 72% at small truckload carriers.

-Increased to 18% from 13% in the less-than-truckload (LTL) sector.

American Transportation Association (ATA) chief economist Bob Costello said, “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”

Even though the market is in an upturn, ATA’s most recent survey found carriers reluctant to grow their fleets. Fleet sizes have decreased 6% for large carriers, 4.9% for small carriers, and 0.9% for LTL.

In the American Transportation Research Institute (ATRI)’s Critical Issues in the Trucking Industry 2020 report, respondents recommended several strategies to help strengthen the trucking and fleet sector. One strategy includes repealing or reforming ineffective, burdensome regulations negatively impacting the trucking industry. For example, most in the industry have favored adaptations of the Hours-of-Service (HOS) rule.

In 2020, the top HOS strategist advocated for additional flexibility in the sleeper berth provision, allowing a 7-3 split of hours. The U.S. Department of Transportation (DOT) has continued exploring whether to modify HOS rules for highly automated trucks, while the Federal Motor Carrier Safety Administration (FMCSA) is conducting research to “increase understanding of the human factors and address specific areas such as driver readiness.”

DRIVE-Safe Act

This bipartisan legislation could help to address the looming driver deficit, which is projected to reach 160,000 or more by 2028. Continued growth in freight demand combined with anticipated retirements could result in the industry needing to hire 1.1 million drivers over the next 10 years — or almost 110,000 drivers each year.

The DRIVE-Safe Act introduces a rigorous two-step apprenticeship program. It would allow younger drivers (between ages 18 and 20) to apply and train to drive trucks. Candidates complete at least 400 additional training hours, and an experienced driver would accompany apprentices on the road. These drivers-in-training would be required to drive trucks equipped with the latest transportation management software and safety technology like:

-Active braking collision mitigation systems.

-Forward-facing event recording cameras.

-Speed limiters set at 65 MPH or less.

-Automatic or automatic manual transmissions.

Meeting demand

The trucking industry continues working to meet demand. 2020 saw a 36% increase from 2019 in the number of entities (almost 58,000) to which FMCSA granted carrier authority. But the pandemic has lengthened the time needed to train and license new drivers. An additional 54,000 drivers became ineligible once the new FMCSA Drug and Alcohol Clearinghouse launched last year.

One solution to attracting and retaining more drivers includes increasing pay, which has increased dramatically recently. Fleets of all sizes now offer rolling pay increases and even signing bonuses of $10,000 or more. Ironically, pay increases may be contributing to the driver shortage, because some drivers earning more have chosen to drive fewer hours.

While long-haul trucking jobs have high turnover rates — a metric many point to as the reason for the driver shortage — this trend wasn’t caused by high employee dissatisfaction but rather the drivers themselves bouncing between companies.

Attracting (and keeping) drivers

Trucking companies and fleets have turned to a variety of strategies to combat the driver shortage, including increased pay and sign-on bonuses. But it isn’t just higher salaries. Drivers want more control over their workdays and environments. One tactic to help drivers achieve the balance they desire? Workflow software and route optimization.

Technology adoption has driven efficiency gains within the trucking industry as more trucking companies have embraced digital transformation. It isn’t just shifting office staff from in-person to remote work or using video conferencing to communicate. Fleets use data analytics to improve utilization. Contactless payment systems and electronic bills of lading have reduced touchpoints and friction.

Trucking software helps fleets more efficiently track drivers, manage dispatch records, monitor interstate fuel tax agreement (IFTA) reports, optimize driver routes, pay invoices, save fuel costs, track vehicle maintenance records and more.

Fleet management platforms also help drivers work smarter, not harder. The cloud-based software and accessible data allow fleet managers to analyze information for insights to optimize driver workflow. Mobile ELD and workflow solutions empower drivers to more effectively manage work processes and routes, setting them up for success by taking the guesswork out of compliance and reducing frustration, uncertainty and inaccuracy.

Truck drivers are essential workers and critical for sustaining a functioning economy. The pandemic highlighted not just their importance, but the importance of the transportation and supply chain industries, too. As the pandemic ebbs, the world rebalances and the economy continues its recovery, fleets and trucking companies will continue to make their deliveries and transport goods from coast to coast.

Implementing the tools of digital transformation — like driver workflows and other fleet management software — will prove to be another useful tactic for attracting and retaining drivers, ensuring their safety, and empowering drivers to simplify their daily workload and operate more productively, while still achieving high-performance standards.

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Avi Geller is the founder and CEO of Maven Machines. Since 2014, Avi has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but started Maven in Pittsburgh, Pennsylvania due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi also has an engineering degree from MIT and an MBA from Northwestern University.

diamond supply
Archives, Global Trade Daily, Imports/Exports, News

U.S. Diamond Prices Jump Up Amid Acute Demand and Lack of Supply 

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

U.S. diamond prices continue to rise due to the demand remains solid while product supply is limited. Jewelry sales in the U.S. keep robust, but global diamond mining and cutting remain low compared to pre-pandemic levels, primarily due to the problematic epidemiological situation in India. The return of work at Indian processing plants should help increase supply in the global diamond market and limit the rise in product prices. The recovery in American tourism activity could lead to a decline in demand for jewelry and constrain the price growth.

Key Trends and Insights

According to Fairfield County Diamonds, diamond prices continue to rise. In September 2021, they grew by an average of 0.9% from August 2021. The average price per carat for all diamonds was $11,139.53, up from $11,039.49 a month prior.

The increase in diamond prices was driven by strong demand for jewelry in the U.S. and China set against limited supply as diamond mining and cutting remain low. In the first quarter, global production of rough diamonds fell by 22% to 24 million carats due to mine suspension at the Canadian Ekati diamond mine, the closure of Australia’s Argyle mine, and the decrease in activity at other large mining companies.

American demand for jewelry remains strong this year. According to a report from Mastercard’s ‘Spending Pulse’, US jewelry sales in July 2021 were +82.6% higher than the same period in 2020 and +54.2% higher than those of July 2019.

The positive financial gains for global gem producers confirm the high demand for diamonds. Rough diamond sales from the world’s leading supplier in the jewelry industry, De Beers Group, amounted to $3.5B in 2021 and exceeded sales from 2020 ($2.8B). Sales of rough diamonds from the Russian diamond producer Alrosa, in the first half of 2021 amounted to 15.5 million carats, which is 65% higher than last year and 47% higher than Q1 of 2019.

Along with the jump in the incidence of Covid-19, India introduced quarantine restrictions, which led to a drop in factory utilization down to 50-70%, an outflow of migrant workers, and a decrease in the volume of diamond cutting and polishing operations. As the incidence rate has declined since mid-2021, there has been a return to operations and an increase in diamond exports from India. According to the Gem & Jewelry Export Promotion Council (GJEPC), the total gross diamond export in July 2021 was $2.26B, which is up 146% compared to the previous year.

The recovery of large supplies of cut diamonds from India should help limit the rise in prices for the product. An additional factor for prices lowering in the medium term is the gradual recovery of tourist activity, which will contribute to the shift of the population’s spending away from the jewelry sector and toward tourism and the entertainment industry.

Non-Industrial Diamond Production

In 2020, approx. 74M carats of non-industrial diamonds were produced worldwide, reducing by -10.6% against the previous year’s figure.

The countries with the highest volumes of non-industrial diamond production in 2020 were Russia (24M carats), Canada (17M carats) and Botswana (13M carats), with a combined 65% share of global production. Angola, South Africa, Congo and Namibia lagged somewhat behind, together accounting for a further 35%.

In 2020, the most notable rate of growth in terms of non-industrial diamond production amongst the significant producing countries was attained by Congo, while non-industrial diamond production for the other global leaders experienced a decline in the production figures.

World’s Largest Non-Industrial Diamond Importers

In value terms, non-industrial diamond imports reduced from $108.2B in 2019 to $67.9B (IndexBox estimates) in 2020.

China ($5.9B) constitutes the largest market for imported non-industrial diamonds worldwide, comprising 8.8% of global imports. The second position in the ranking was occupied by Thailand ($1.3B), with a 1.9% share of global imports.

In 2020, the value of Chinses imports dropped by -24.3% y-o-y.

World’s Largest Non-Industrial Diamond Exporters

In value terms, Belgium ($8.2B) remains the largest non-industrial diamond supplier worldwide, comprising 13% of global exports. The second position in the ranking was occupied by China ($1.1B), with a 1.8% share of global exports.

In 2020, the average annual rate of growth in terms of value in Belgium totaled -29.5%. In the other countries, the average annual rates were as follows: China (-34.3% per year) and Thailand (-33.6% per year).

Source: IndexBox Platform

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Archives, Global Logistics, Global Trade Daily, Special Reports

Prep for the Holiday Season with Top E-commerce Strategies

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The most wonderful time of the year…is here. You already know that the holiday shopping season is the most critical period for retailers, both online and brick and mortar. How your business does during the last quarter of the year determines where things land for your bottom line.
 

This year, though, brand and e-commerce marketing managers are facing another wild ride, with uncertainty created by shifting trends. The pandemic brought on a surge in online buying, and many buyers are likely to continue to buy online. In fact, according to September 2021 survey data, consumers are planning a 50/50 split between online and brick-and-mortar buying. The retail giants—Amazon, Target, and Wal-Mart—are already capitalizing on convenience to hold onto their share of wallet.

 

There are other factors, though, to consider. Shopping trends are changing fast. News of supply chain pressures and worldwide shipping delays has spurred many shoppers to buy early or shift their buying behavior — 83% of shoppers intend to start before Thanksgiving this year, in a departure from the norm. In such an unpredictable market at such a high-stakes time of year, business intelligence has never mattered more. This is where the performance analytics platform Line Item can be the lifeline e-commerce marketers need right now to ensure they make the most of the holiday season.As we head into the heart of the 2021 holiday season, here are a few strategies to prepare and protect your digital shelf for the upcoming holidays.

Focus on organic search ranking. Whether they’re buying online or in person, many shoppers start their research online—on a smartphone or a tablet. This is why it’s essential to monitor and improve your online search ranking. Watch where you’re showing up, too. Moving from page 2 to page 1—and even into the top 10 listings—can significantly boost your sales. Improving your organic search ranking depends on visibility into what’s working—or not—for your brand. This is where Line Item can help, with detailed insight into what changes you could make to content, product descriptions, or imagery to affect your ranking in organic search results.

Analyze your paid search strategy. Shoppers are pressed for time, and you have only seconds to capture attention when it comes to search results. The holiday season is the time to invest in a robust paid search strategy, but you’ll want to be sure you understand what product attributes drive value. This is where Line Item can give you valuable campaign-level and product attribute insights. With them, you can better understand what’s driving the market and what your competitors are doing, so you can sharpen your edge and see ROI from a page-1 slot.Ensure your product detail pages are complete. This is a biggie. Incomplete or inconsistent product detail pages can harm you, whether we’re talking about Amazon listings or your own website. Across your e-commerce portfolio, all product detail pages should be complete, correct, and compelling. Line Item can help with this to make sure you aren’t overlooking clear areas or gaps that prevent you from meeting category bestseller benchmark standards.

Evaluate your SEO strategy and campaigns. During this volatile time of year, whims and demand drive the market in unpredictable ways. And that’s during a typical season, which 2021 is anything but. It’s essential to drill down to campaign elements, including CPCs, to ensure you have a read on how changing demand, sudden interest, or seasonality might be driving spend. E-analytics insight from Line Item can help you ensure your campaigns are profitable and that your overall marketing spend ultimately drives return on investment.

Watch out-of-stocks closely. Maintaining optimal inventory is key to profitability. When a customer is ready to buy and your product is out of stock, you lose the sale—and maybe the customer, too. Line Item helps you determine if out-of-stocks are hurting your revenue.

Track pricing. Many retailers are introducing new pricing strategies to drive sales this holiday season. Buy Now Pay Later is one of these, and it can appeal to segments like Gen Z and the unbanked, both of which are more price sensitive. The major retailers have already rolled out BNPL options; some have been in play since 2019. BNPL can affect pricing, so it’s important to monitor this. With Line Item, you can verify item pricing, selling price, and list price across platforms, ensuring that products are priced correctly even with new options like BNPL, and you can easily monitor third-party and competitor activity to protect your brand and products.

Of course, there are other strategies to consider, too—best practices like:

-Ensuring your checkout process is as easy as possible

-Providing access to customer service with tools like live chat, and with quick responses

-Creating engaging content, like gift guides

-Using targeting and segmentation to create personalized email campaigns

-Boosting sales with savvy retargeting

Using updated visuals and copy for featured holiday campaigns, and to ensure your site and product pages have that holiday look and feel, and more

This holiday season may be full of surprises, but your performance shouldn’t be one of them. The right insight can make or break your brand this holiday season, and business intelligence can give you what you need, when you need it. This is where Line Item really stands out as a single platform with insight into shopping trends and behavior, and what your competitors are doing—so you can finish 2021 in the black.