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COVID-19 Introduced a Backdrop of Uncertainty, But Also Opportunity: How Businesses Can Navigate International Expansion

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COVID-19 Introduced a Backdrop of Uncertainty, But Also Opportunity: How Businesses Can Navigate International Expansion

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The global pandemic has reminded us all of how inter-connected the world is. As countries emerge from the global health crisis, and economies show steady signs of recovery, companies with global exposure are increasingly optimistic about opportunities outside their home markets, despite a number of headwinds. Expanding a business beyond one’s domestic market requires long-term planning, utilization of complex global supply chains, managing risk exposures and being nimble enough to flexibly respond to changing market conditions.

The results of J.P. Morgan’s 2021 Business Leaders Outlook (BLO) survey highlight how leaders are adjusting to this new environment—and finding opportunities to grow globally despite the current challenges.

In the survey, most midsize U.S. businesses are optimistic, even as they plan for continued unpredictability. Having learned in 2020 how to manage well remotely and deal with disrupted supply chains, U.S. business leaders are staying the course; global expansion plans remain at the same levels from pre-pandemic years. Most project continued steady sales growth outside their home market. This indicates the confidence they have gained from pivoting throughout the year, including accelerating technology adoption, increased digitization of core processes and managing global ventures with much less in-person travel.

Ultimately, the rollouts of COVID-19 vaccines continue to be a core component impacting the global growth outlook for businesses. In addition, geopolitical events, new trade and investment policies and continuously changing business regulations will continue to challenge business leaders seeking sustained profitable international growth.

Why Expand Globally in This Climate?

With issues such as labor shortages, severe bottlenecks in global supply chains and evolving customer expectations, it can be discouraging to consider international expansion at this time. However, according to the survey, executives remain optimistic. Those surveyed cited access to new customers/markets (72%), better opportunities to serve domestic customers with global operations (37%) and access to suppliers/materials (34%) as key reasons for expansion.

The pandemic will not deglobalize the business landscape. Business leaders have tried-and-tested remote workforces, seen governments become more flexible with business applications, and they have been leveraging new approaches and technologies to keep their business moving forward. In short, they have experience under their belt, have a long-term vision and see opportunity in international expansion—and are not letting the pandemic stand in the way. After all, adapting is what business is all about – and recognizing that extraordinary environments demand tailored strategies based on an accurate reading of market opportunities.

The World Has Changed: Three Key Strategies For Navigating International Expansion

1. Developing Strategic Partnerships & Understanding Trade Policy

Trade barriers and tariffs were cited as the top international business concern for globally-active middle-market companies in the 2021 Business Leaders Outlook survey. Complying with local regulations and the intricate differences in policy between nations can be overwhelming and time-intensive. Any little error may lead to wasted time or resources, complications, and added expenses. Developing strategic partnerships with businesses, banks, and vendors—those who already have the local intel—goes a long way in effective global expansion.

The many cultural nuances and varying consumer preferences by country also benefit from local expertise. Furthermore, the insight around local competition and market opportunities is more easily obtained through these kinds of partnerships, especially when acting quickly is critical to success.

Increasing global political changes in recent years that are challenging the status quo require extra diligence in this environment.  Additionally, the economic reforms underway in many developing countries are impacting both the volume and direction of foreign investment. We especially see this in China, India, Southeast Asia, Latin America and parts of Europe. For businesses navigating expansion in countries experiencing political and economic reform, it’s important to consider the impact these governments will have on fiscal, monetary, regulatory and foreign policy—and how significantly or quickly this may affect foreign investment opportunities.

As a positive example for businesses in North America, the United States-Mexico-Canada Agreement (USMCA) brought timely improvements to trade relationships in today’s volatile landscape. The USMCA has the potential to offer more certainty and a stronger safety net for trade and investment by promoting fairer trade and robust economic growth.

2. Investing in Technology & Digitization

Trade finance is the nucleus of the day-to-day global economy. It supports every stage of the global supply chain and ensures that buyers receive their goods and that sellers receive their payments. Yet the world faces a massive and persistent trade finance gap. The World Trade Organization estimated between 80% to 90% of global trade relies on trade finance, yet there was a $1.5 trillion gap between the market demand and supply before the pandemic.  That gap has only increased since 2020.

COVID-19 accelerated a transformative period for trade finance, primarily through digitization. The global challenge with trade finance centers around inflexible business models, paper-based and tedious processes, regulatory constraints, and outdated legacy systems.

Technology can help bring down operational costs while also increasing efficiencies, encouraging new revenue opportunities, optimizing resources, enhancing the recruiting process…the list goes on. Businesses are investing heavily in digital transformation, with cloud-enabled technology becoming the new standard of operation. This brings immense advantages, including the immediate ability to access data and machine learning (ML) with virtually unlimited computing power, in a split second. The value of AI and ML can clearly be seen across business functions including trading, risk management, marketing and operations. It enhances outcomes by streamlining processes and increasing overall efficiency.

Additionally, blockchain—a highly secure, decentralized digital record of transactions—offers a multitude of international trade-related applications, bringing high security, automation and traceability to important finance functions.

3. Streamlining Supply Chains

More than ever, managing global supply chains has become a critical skill for companies expanding internationally. Surging demand with various bottlenecks has disrupted global goods transportation and logistics. Gaining visibility over cross-border supply chains, while meeting profitability goals and evolving needs of customers, is an ongoing obstacle for most business leaders. Streamlining the global supply chain and focusing on visibility can lead to increased efficiencies throughout the entire production/solution life cycle. It entails optimizing processes by improving the accuracy of demand forecasts and schedules and improving production lines to reduce costs. This can help make businesses more agile and profitable. Secure data integration is also critical, so information can be shared across channels swiftly and seamlessly.

While concerns around tariffs and trade barriers again led the list of business leaders’ global concerns in the 2021 survey, managing global supply chains overtook currency risk for the second spot. Instead of focusing on the next crisis scenario—whether it be a pandemic, natural disaster, or cyber attack—business leaders must continue their focus on making global supply chains more resilient for future disruptions.

The Road Ahead: Global Outlook Optimistic for Well-Prepared Business Leaders

The overall global business outlook is optimistic, with 66% of leaders in the 2021 survey expecting their international sales to increase in the next five years. U.S. midsized, multinational businesses know that sustained growth requires access to new customers in new markets. That won’t change. However, today’s increasingly complex landscape will require greater investments in digitized products and processes, more customized local solutions in widely different international markets, and leveraging the expertise of reliable partners to understand the nuances of operating in challenging foreign markets. At the top of the list is having effective market entry and supply chain strategies, supported by a strong understanding of trade and investment policy to help shape your global market expansion.

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Archives, Global Trade Daily, Imports/Exports, News

China’s Antibiotic Exports Soar to Record $3.7B

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

Antibiotic exports from China, the largest supplier worldwide, peaked at $3.7B in 2020. Over the past decade, China’s exports steadily grew at an average annual rate of +2.5%. India, the Netherlands and Viet Nam constitute the leading importers of antibiotics from China. Viet Nam recorded the highest growth rate of import value from China over the past decade. Last year, the average antibiotic export price amounted to $44,258 per tonne, increasing at an average annual rate of +4.4% from 2010 to 2020.

China’s Antibiotic Exports

In value terms, antibiotic exports rose from $3.6B in 2019 to $3.7B (IndexBox estimates) in 2020. The total export value increased at an average annual rate of +2.5% from 2010 to 2020.

In physical terms, antibiotic exports from China declined modestly from 100K tonnes in 2010 to 84K tonnes in 2020. Last year, exports waned by -4.2% on the previous year. China remains the world largest antibiotic exporter, accounting for 54% of the global volume.

India (23K tonnes) was the leading destination for antibiotic exports from China, accounting for a 27% share of total exports. Moreover, antibiotic exports to India exceeded the volume sent to the second major destination, the Netherlands (6.1K tonnes), fourfold. The third position in this ranking was occupied by Viet Nam (3.9K tonnes), with a 4.7% share.

In value terms, India ($986M) remains the key foreign market for antibiotic exports from China, comprising 27% of total exports. The second position in the ranking was occupied by the Netherlands ($216M), with a 5.8% share of total exports, and it was followed by Viet Nam, with a 3.9% share.

From 2010 to 2020, the average annual growth rate of value exported to India (+0.6% per year) was relatively modest. Exports to the other significant destinations recorded the following average annual rates of growth: the Netherlands (+7.4% per year) and Viet Nam (+8.4% per year).

In 2020, the average antibiotic export price amounted to $44,258 per tonne, increasing by +7.6% against the previous year. In general, the export price indicated a noticeable increase from 2010 to 2020, rising at an average annual rate of +4.4% over the last decade.

There were significant differences in the average prices for the major export markets. In 2020, the country with the highest price was South Korea ($80,132 per tonne), while the average price for exports to Indonesia ($28,191 per tonne) was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to the U.S., while the prices for the other significant destinations experienced more modest paces of growth.

Source: IndexBox Platform

animal feed
Archives, Global Trade Daily, News

Germany’s Animal Feed Preparation Exports Hit Record Highs

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IndexBox has just published a new report: ‘Germany – Preparations Used In Animal Feeding – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Germany steadily expands exports of animal feed preparations. Over the past decade, the volume of exports increased from 2.4M tonnes to 3M tonnes while the export value doubled to $3.6B. The Netherlands, Poland and France remain the largest importers of animal feed preparations from Germany, accounting for 48% of the total export volume. The UK recorded the highest spike in purchases from Germany last year. The average export price for animal feed preparations rose by +11% y-o-y to $1,199 per tonne.

Germany’s Exports of Animal Feed Preparations

In 2020, the volume of preparations used in animal feeding exported from Germany rose modestly to 3M tonnes, increasing by +4.5% on 2019 figures. German exports boosted from 2.4M tonnes in 2010 to 3M tonnes last year.

In value terms, preparations for animal feeding exports skyrocketed by +15.7% y-o-y to $3.6B (IndexBox estimates) in 2020. In the past decade, the value of exports grew twofold.

The Netherlands (774K tonnes), Poland (442K tonnes) and France (229K tonnes) were the main destinations of preparations for animal feeding exports from Germany, with a combined 48% share of total exports. Denmark, Austria, Norway, the Czech Republic, Belgium, the UK, Italy, Luxembourg, Switzerland and Hungary lagged somewhat behind, together comprising a further 39%.

In value terms, Poland ($517M), the Netherlands ($397M) and Austria ($340M) were the largest markets for preparations for animal feeding exported from Germany worldwide, with a combined 34% share of total exports. France, the UK, Italy, Switzerland, Denmark, the Czech Republic, Belgium, Norway, Hungary and Luxembourg lagged somewhat behind, together accounting for a further 43%. Among the leading countries of destination, the UK saw the highest growth rate of the value of exports (+26% y-o-y), while shipments for the other leaders experienced more modest paces of growth.

In 2020, the average export price for animal feed preparations amounted to $1,199 per tonne, increasing by +11% against the previous year. There were significant differences in the average prices for the major export markets. In 2020, the country with the highest price was Switzerland ($2,805 per tonne), while the average price for exports to the Netherlands ($513 per tonne) was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Poland, while the prices for the other significant destinations experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Executive Education, Global Trade Daily, Imports/Exports

U.S. Export & Reexport Compliance for Canadian Operations

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January 25 – 27, 2022 | Toronto, ON + Livestream Option Available

The Canadian Institute (CI) and the American Conference Institute (ACI) invites you to attend the 11th Annual Forum on U.S. Export & Re-Export Compliance for Canadian Operations in Toronto, ON on January 25–27, 2022!

Over the last decade, this acclaimed event has gathered senior U.S. and Canadian government officials, as well as legal and compliance experts from aerospace, defense, technology, satellite, space, telecom, energy, logistics, and many more industries. CI/ACI are excited to host this event in-person this year (following all local Covid measures) to give a chance for attendees to network once again in-person. The event will also be live-streamed to give a wider audience a chance to access the expertise and updates shared by CI/ACI’s speaker faculty.

As in past years, the 2022 agenda will focus on the most complex issues posed by the interplay of U.S. and Canadian export/re-export controls, as well as the nuances of applying U.S. requirements to the Canadian context.

HERE ARE YOUR TOP 5 REASONS TO ATTEND:

1. Hear directly from key government decision-makers.

2. Benchmark with leading exporters through audience polling and structured breakout conversations.

3. Stay in the loop on critical development in Canada and the U.S.

4. Gain best practices for navigating compliance risks that are unique to the Canadian context.

5. As the only event of its kind in Canada, this is your best chance to expand your network and brain trust.

Don’t miss the only comprehensive event for the export and re-export compliance community in Canada!

Register now to take advantage of early rates! SAVE 10% with Global Trade Magazine Code: D10-856-856BX01.

Online: https://bit.ly/3kEgKx2

Email: customerservice@canadianinstitute.com

Phone: 1-877-927-7936

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Archives, Global Trade Daily, News, Special Reports

The COP26 Deforestation Pledge Will Not Cut Global Lumber Supply Please mention the Source

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

Over 120 countries signed the Glasgow Leaders’ Declaration on Forests and Land Use, a voluntary commitment to halt deforestation. The world’s top lumber suppliers, such as Canada, Russia and Sweden, are among the signatories, as well as those countries with the highest rates of tropical forest loss – Brazil and Indonesia. Based on experience from a similar 2014 agreement signed in New York, the obligations will not force suppliers to significantly slow their pace of deforestation but rather instigate an increase in planting new trees to replace those cut-down.

Key Trends and Insights

In November 2021, more than 100 countries signed the Glasgow Leaders’ Declaration on Forests and Land Use, obligating them to halve deforestation by 2020 and cease it altogether by 2030. The endorsers account for about 90% of global tree cover, and 28 out of these countries are obligated to stop clearing tropical forests to produce palm oil, cacao and soy. The COP26 obligations permit the continuation of clearing forests as long as new trees are planted to replace those cut down.

The declaration is accompanied by $19.2B in financing and is legally non-binding because it was approved outside the UN Framework Convention on Climate Change. The world’s largest lumber suppliers, such as Canada, Russia and Sweden, are among the signatories, as well as those countries where tropical forests are located, namely Brazil and Indonesia. Malaysia, Laos, Cambodia, Myanmar and Paraguay, which are among the countries with the highest deforestation rates, did not sign the Glasgow Declaration.

According to Global Forest Watch, in 2020, the global landmass covered by forests decreased by 25.8M Hectares. The most significant decrease in forest mass was recorded in Russia (5.44M ha), Brazil (3.29M ha), Canada (1.20M ha), the US (1.97M ha) and Indonesia (962K ha). As a consequence of Covid restrictions, global trade in industrial round wood decreased from $17B to $15B, dropping in real terms from 233 to 205 cubic meters.

Theoretically, the Glasgow Declaration could have a severe effect on the global lumber market. If it were legally binding, the critical lumber supplying countries would decrease logging activities, which would lead to a deficit in lumber around the world. The resulting effects of the preceding 2014 New York declaration prove that such agreements do not slow down the pace of deforestation in signatory countries, for example, Indonesia. It’s more likely that governments will increase efforts to plant new trees to comply with the agreement and only insignificantly decrease logging. The high demand for lumber in the construction industry will decrease prospects of reining in the pace of deforestation worldwide.

Global Industrial Roundwood Imports

In 2020, overseas purchases of industrial roundwood decreased by -12% to 205M cubic meters for the first time since 2017, thus ending a two-year rising trend. In value terms, industrial roundwood imports fell $16.9B to $14.8B (IndexBox estimates) last year.

In 2020, China (92M cubic meters) represented the leading importer of industrial roundwood, committing 45% of total imports. Austria (21M cubic meters) ranks second in total imports with a 10% share, followed by Sweden (6.2%). Germany (9.1M cubic meters), Finland (7.1M cubic meters), Japan (6.6M cubic meters), Belgium (5.7M cubic meters), India (4.4M cubic meters), South Korea (4.4M cubic meters), Poland (3.4M cubic meters) and Canada (3.2M cubic meters) took a relatively small share of total imports.

Imports into China increased at an average annual rate of +4.2% from 2010 to 2020. At the same time, Belgium (+9.5%), Austria (+4.8%), Sweden (+1.9%) and India (+1.3%) also displayed positive paces of growth. Moreover, Belgium emerged as the fastest-growing roundwood importer globally, with a CAGR of +9.5% from 2010-2020. Poland and Germany experienced relatively flat trend patterns. By contrast, Finland (-2.8%), Canada (-3.1%), Japan (-5.5%) and South Korea (-8.4%) illustrated downward trends over the same period.

In value terms, China ($8.4B) constitutes the largest market for imported industrial roundwood worldwide, comprising 57% of global imports. The second position in the ranking was occupied by Austria ($713M), with a 4.8% share of global imports, and it was followed by India, with a 4.4% share.

The average industrial roundwood import price stood at $72 per cubic meter in 2020, flattening from the previous year. Prices varied noticeably by the country of destination; the country with the highest price was India ($147 per cubic meter), while Austria ($35 per cubic meter) was amongst the lowest. From 2010 to 2020, the most notable rate of growth in terms of prices was attained by South Korea, while the other global leaders experienced more modest paces of growth.

World’s Largest Industrial Roundwood Suppliers

In 2020, New Zealand (40M cubic meters), distantly followed by the Czech Republic (21M cubic meters), Germany (20M cubic meters), the U.S. (18M cubic meters), Russia (15M cubic meters), and Uruguay (12M cubic meters) represented the leading exporters of industrial roundwood, together constituting 64% of total exports. Australia (7.4M cubic meters), Norway (6.8M cubic meters), Canada (4.4M cubic meters), France (4.2M cubic meters), Latvia (4M cubic meters), Papua New Guinea (3.9M cubic meters), and Belarus (3.6M cubic meters) followed a long way behind the leaders.

In value terms, New Zealand ($2B), the U.S. ($1.6B) and Russia ($1B) were the countries with the highest levels of exports in 2020, together accounting for 40% of global exports. Germany, the Czech Republic, Uruguay, Papua New Guinea, Australia, Canada, France, Norway, Latvia and Belarus lagged somewhat behind, together accounting for a further 39%.

Source: IndexBox Platform 

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Archives, Global Trade Daily, Imports/Exports, News

China Sharply Reduces Aluminium Foil Exports to India

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

China’s aluminium foil exports dropped by -4.9% to 1.2M tonnes. The supplies to South Korea, Thailand and India constitute 22% of China’s foil exports. India, the largest importer of Chinese foil, recorded the most remarkable reduction of purchases. The supplies from China to South Korea, Thailand and Indonesia grew slightly.

China’s Aluminium Foil Exports by Country

Aluminium foil exports from China fell to 1.2M tonnes in 2020, waning by -4.9% against 2019 figures. In value terms, aluminium foil exports dropped from $4B in 2019 to $3.8B (IndexBox estimates) in 2020.

India (98K tonnes), Thailand (97K tonnes) and South Korea (75K tonnes) were the main destinations of aluminium foil exports from China, with a combined 22% share of total exports. These countries were followed by Indonesia, Saudi Arabia, the United Arab Emirates, the U.S., Mexico, Japan, Viet Nam, Malaysia, Italy and Canada, which together accounted for a further 38%.

In value terms, South Korea ($354M), Thailand ($278M) and India ($261M) appeared to be the largest markets for aluminium foil exported from China worldwide, with a combined 23% share of total exports. Japan, the U.S., Indonesia, the United Arab Emirates, Saudi Arabia, Malaysia, Mexico, Viet Nam, Italy and Canada lagged somewhat behind, together accounting for a further 38%.

Among other countries, India saw the most remarkable reduction of supplies from China. In 2020, exports to India shrank by -29% y-o-y estimated in physical terms and by -30% y-o-y in value terms. By contrast, China’s exports to South Korea (+2% y-o-y), Thailand (+5% y-o-y) and Indonesia (+4% y-o-y) grew.

In 2020, the average aluminium foil export price amounted to $3,109 per tonne, almost unchanged from the previous year. Prices varied noticeably by the country of destination; the country with the highest price was Japan, while the average price for exports to Saudi Arabia was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Japan, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

supply
3pls, Archives, Global Logistics, Global Trade Daily

FORWARD-THINKING FORWARDERS: HOW TO MANAGE CUSTOMERS’ CHANGING NEEDS ALONG A CHANGING SUPPLY CHAIN

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For the modern-day 3PL provider, managing expectations while successfully retaining customers goes well beyond cost savings and providing the fastest alternative to moving products. It did not take the pandemic to realize the consumer market continues to shift significantly, creating spikes at every angle from transport costs, sourcing, space, resource flexibility… and the list goes on.

The meaning of “competitive” is now determined by a 3PL provider’s agility and predictability in tandem with optimizing the flow of goods throughout the supply chain. The big kicker in the current market is that as costs continue to go up, the available labor pool becomes smaller. So, then, how can 3PL providers keep up with the competition while retaining their customer base and adding value? It starts with how you manage customer relationships. Many times, the biggest competition is not the opposing team;  it is keeping up with the hit-and-miss market. 

Andy Frommenwiler, vice president of Air Freight USA at Dachser, has compiled a list of the top three shifts his company’s customers are considering or implementing:

1. Alternative solutions to source their product. To that end, local sourcing has become more competitive and paired with unpredictable rising costs of transportation.

2. Customers are moving toward longer-term forecasting to allow for disruption and the lack of supply chain fluidity.

3. Taking advantage of space availability for customers with smaller orders.

“Market disruptions will continue, and it is imperative to properly plan now because it is clear there will be ongoing capacity challenges and other forms of disruption throughout the year,” Frommenwiler cautions.

In addition to piecing together the puzzle of transporting goods without breaking the bank and tarnishing the reputation, 3PL providers are laser-focused on retaining their customer bases. While the market is scrambling, customer retention is a critical element to remaining resilient and maintaining a competitive edge. The key here is not so much about what you can offer customers, but more so how you can extend stability and transparency. 

“In today’s environment, it is crucial to maintain an initiative-taking approach and open dialogue with your customer,” advises Frommenwiler. “Informing customers of the current market situation, such as unstable pricing and space shortages, makes the customer aware of today’s challenges, which not only allows them to properly prepare but also highlights the importance of a strong, knowledgeable logistics partner.”

Always remember that the disruptions you are experiencing as a 3PL provider are almost always parallel to the challenges your customers are struggling to navigate. The value is how the 3PL provider not only provides support in solving these challenges, but also how much visibility is gained through the partnership. 

“Very high demand with low supply, port congestion, trucker shortages, mounting detention and demurrage charges are just some examples of the challenges companies are faced with today,” Frommenwiler notes. “As the planning experts, it is our responsibility to not only identify the challenges, but also to provide alternative solutions such as LCL expedited service, standard LCL or air freight options. 

“It is also critical that we insist on customer forecasts to facilitate better planning, booking, space allocation and superior utilization. It is important to gain trust and ensure the customer understands that, as their appointed forwarders, we are their partners and are not capitalizing on the situation by taking advantage and over-charging for our services.”

Another significant challenge in the current market is the labor shortage. Look at any industry, and you will find the need for workers. The same is true for players in the logistics arena–from 3PLs to customers, all are hurting from the labor shortage. 

“The current labor shortage situation is particularly challenging and difficult to manage,” Frommenwiler concedes. “Ground handling companies, which are managing several airlines, are simply overwhelmed with the amount of cargo and limited warehouse space. Consequently, it takes days to break down cargo. These delays contribute to further disruptions throughout the supply chain.”

The role of a logistics provider is to understand these disruptions while providing solutions that benefit the customer. Demand will continue to increase, that is not changing. When you take on the challenges of the customer as a logistics provider, you create the opportunity to understand what your competitors are faced with. The more solutions you provide to your customer base, the more trust, reliability and increases to your bottom line you create. When you invest in your customer, you invest in your company. 

“It is important for companies to start making proper investments now to position themselves for a successful future,” Frommenwiler says.

Dachser USA takes these investments to the next level when considering the needs of its customer base. In July 2020, the global logistics leader announced its new dedicated weekly Frankfurt-Chicago-Frankfurt flight service, connecting U.S. customers to the European market through a comprehensive land transport network from Frankfurt with rotations each weekend. The pandemic inevitably took its toll on the flow of the supply chain and in true Dachser style, the provider stepped up to the challenge, paving the way for advancements in innovation and expansion. 

“This new dedicated weekly transatlantic flight service offers a solution to the current air freight capacity challenges that our customers are facing,” Frommenwiler says. “They called upon us to provide a timely, efficient transportation option to move their cargo between the U.S. and Europe in a way that allows them to properly plan and meet their deadlines.” 

Market disruptions do not have to be the end of your brand–in fact, they can be the very thing that sets your services portfolio apart from the competition. At the end of the day, customers will select the logistics provider that can get the job done, maximize the bottom line and add value to the partnership. If your customer suffers, your company suffers. Offering the latest technology means nothing without measurable results, scalability and increased visibility. When thinking about how your company can best meet the needs of customers in a volatile market, start with the basics: clear communication. 

_____________________________________________________________________

Andy Frommenwiler is vice president, Air Freight USA, at Dachser.

agricultural products chloride
Archives, Global Trade Daily, Imports/Exports

Largest Importers of U.S. Agricultural Products

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According to the U.S. Department of Agriculture, U.S. agricultural and related exports totaled $162 billion in 2020, the third-highest total on record. The U.S.’s top agricultural export partners have shifted over the years, from Western Europe and Russia to South and East Asia, Latin America, and North Africa. A growing world population and expanding middle class in developing countries suggest that U.S. agriculture will remain in high demand looking ahead.

Total U.S. agricultural and related goods exports peaked in 2014 at over $170 billion. The following year, the value dropped by 12% due to a significant appreciation of the U.S. dollar; agriculture exports remained fairly constant after that. Tariffs imposed during the Trump administration resulted in retaliatory tariffs by important trade partners, which impacted U.S. agricultural exports to those countries, particularly to China. However, the impact on total agricultural exports was minimal, in part due to increased exports to other non-retaliating countries.

Since 1980, consumer-oriented goods have made up an increasingly large share of U.S. agricultural exports. Consumer-oriented agricultural products are higher-value goods destined for direct consumer consumption, and include things like meat, eggs, fruit, and vegetables. This trend is due in part to changing consumer preferences resulting from rising incomes globally. Many developing countries—including China, Mexico, and Indonesia—are important trade partners to the U.S., and rising household incomes in these countries have led to increased demand for higher-value products such as meat, dairy, and fresh produce. Bulk goods make up the second-largest share of U.S. agricultural exports and include products like grains, oilseeds, and cotton.

While the U.S. and Europe have historically been the world’s largest importers and exporters of agricultural goods, emerging economies are becoming increasingly important to global trade. On a regional basis, East Asia—which includes China, Japan, South Korea, and Taiwan—is the largest importer of U.S. agricultural products, accounting for 34% of all U.S. agricultural exports in 2020. Southeast Asia—which includes Vietnam, the Philippines, and Indonesia—is now the third-largest importer of U.S. agricultural products, behind North America and ahead of the European Union. For context, Southeast Asia ranked seventh in 1990.

To find the largest importers of U.S. agricultural products, researchers at Commodity.com analyzed data from the U.S. Department of Agriculture. The researchers ranked countries according to the total value of U.S. agricultural products that each country imports. Researchers also calculated each country’s value as a share of total U.S. agricultural exports, the top U.S. agricultural product exported to each country, and other detailed statistics.

Here are the biggest importers of U.S. agricultural products.

Country
Rank
Total value of U.S. agricultural exports to country
Country’s value as a share of total U.S. agricultural exports
Top U.S. agricultural product exported to country
Bulk total value
Intermedial total value
Consumer-oriented total value
Agricultural related total value
China

 

   1 $28,750,288,000    17.7% Soybeans $19,132,864,000  $1,872,701,000  $5,393,904,000  $2,350,819,000
Canada   2  $25,414,534,000    15.7% Bakery Goods, Cereals, & Pasta

 

 $1,023,675,000  $4,160,305,000  $17,093,000,000  $3,137,555,000
Mexico

 

   3  $18,962,080,000    11.7% Corn $6,132,761,000  $3,914,580,000  $8,288,950,000  $625,787,000
Japan   4  $12,887,108,000    8.0% Beef & Beef Products

 

 $3,966,270,000  $1,377,563,000  $6,371,574,000  $1,171,700,000
South Korea   5  $8,241,801,000    5.1% Beef & Beef Products

 

 $1,604,410,000  $1,560,234,000  $4,541,906,000  $535,251,000
Vietnam

 

   6  $3,744,450,000    2.3% Cotton $1,790,124,000  $643,589,000  $928,273,000  $382,465,000
Netherlands   7  $3,741,523,000    2.3% Soybeans $1,158,135,000  $965,926,000  $1,221,265,000  $396,197,000
Taiwan   8  $3,349,146,000    2.1% Soybeans $1,194,534,000  $350,236,000  $1,729,362,000  $75,015,000
Philippines   9  $3,230,646,000    2.0% Soybean Meal $919,558,000  $1,182,673,000  $1,107,535,000  $20,881,000
Indonesia   10  $2,897,691,000    1.8% Soybeans $1,486,644,000  $682,172,000  $654,523,000  $74,352,000
Colombia   11  $2,881,065,000    1.8% Corn

 

 $1,305,913,000  $923,885,000  $632,865,000  $18,402,000
United Kingdom   12  $2,740,498,000    1.7% Forest Products

 

 $119,602,000  $506,820,000  $1,100,002,000  $1,014,074,000
Hong Kong   13  $2,182,661,000    1.3% Beef & Beef Products

 

 $31,654,000  $89,541,000  $1,911,321,000  $150,145,000
Egypt   14  $1,920,256,000    1.2% Soybeans $1,509,877,000  $180,781,000  $204,093,000  $25,506,000
Thailand   15  $1,900,352,000    1.2% Soybeans $868,546,000  $508,351,000  $398,499,000  $124,957,000

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/us-agricultural-importers/

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

U.S. Preserved Crab Meat Imports Recover from Last Year’s Slump 

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

American imports of prepared or preserved crab meat show a sign of recovery this year. In the first seven months of 2021, the U.S. imported 17.5K tonnes of crab meat, which was +4.4% higher than the figures for the same period of 2020. In 2021, the average price for imported crab meat rose approximately by +22% compared to the previous year. Indonesia remains the largest supplier, providing nearly half of the total American import volume. Last year, the U.S. boosted purchases from Indonesia, while imports from Venezuela and China declined.

American Imports of Prepared or Preserved Crab Meat

In the first seven months of 2021, the U.S. purchased 17.5K tonnes of crab meat against 16.7K tonnes of the same period of 2020. In value terms, they increased from $327M to $417M. The average price for imported crab meat grew approximately by +22% compared to the figures of 2020.

In 2020, the amount of prepared or preserved crab meat imported into the U.S. dropped to 30K tonnes, down by -7.8% against the year before. In value terms, prepared or preserved crab meat imports dropped sharply from $693M to $562M (IndexBox estimates) in 2020.  In 2020, Indonesia (14K tonnes) constituted the largest supplier of prepared or preserved crab meat to the U.S., with a 47% share of total imports. Moreover, imports from Indonesia exceeded the figures recorded by the second-largest supplier, Venezuela (2.5K tonnes), sixfold. China (2.4K tonnes) ranked third in terms of total imports with an 8.2% share.

In 2020, the import volume from Indonesia rose by +11.2% y-o-y. The supplies from Venezuela and China declined by -15.9% y-o-y and -14.4% y-o-y respectively.

In value terms, Indonesia ($280M) constituted the largest supplier of prepared or preserved crab meat to the U.S., comprising 50% of total imports. The second position in the ranking was occupied by the Philippines ($46M), with an 8.2% share of total imports. It was followed by Viet Nam, with a 7.4% share.

The average import price for prepared or preserved crab meat stood at $18,894 per tonne in 2020, declining by -12.1% 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 the Philippines, while the price for China was amongst the lowest.

Source: IndexBox Platform

gartner
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Generix Supply Chain Solution on Gartner Magic Quadrant

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A global provider of SaaS-based supply chain solutions, Generix Group has been recognized for the third year in a row among providers of WMS solutions with its inclusion in the 2021 Magic Quadrant for Warehouse Management Systems. 

A closely-followed series of market research publications produced by Gartner, the Magic Quadrant or “Gartner MQ” uses an evaluation matrix to analyze the positioning of technology-based companies, rate technology vendors based on defined criteria, and display vendor strengths and weaknesses, according to Techopedia.

Used to evaluate a vendor before a specific technology product, service, or solution is purchased, the Gartner MQ evaluates each vendor on vision completeness and execution ability. Digging down deeper, it classifies each vendor into four different quadrants: leaders, challengers, visionaries, and niche players.

Magic Quadrant for WMS

An industry-standard resource for supply chain professionals wanting unbiased research on the key players for advanced WMS solutions, the Gartner Magic Quadrant for Warehouse Management Systems is compiled based on the research firm’s rigorous methodology. With this information at their fingertips, companies can make a solid evaluation of WMS vendors based on multiple different criteria.

“The WMS market remains vibrant with vendors continuing to innovate,” Gartner points out. “Progress is being made in adaptability and support for automation while cloud services grow faster than the overall market. Supply chain technology leaders should use this (Gartner MQ) research to understand the current state of the WMS market.”

Gartner Magic Quadrants offer visual snapshots, in-depth analyses, and actionable advice that provide insight into a market’s direction, maturity, and participants. Magic Quadrants compare vendors based on Gartner’s standard criteria and methodology. Each report comes with a graphic that depicts a market using a two-dimensional matrix that evaluates vendors based on their completeness of vision and ability to execute.

Generix WMS Systems 

With two distinct WMS solutions, Solochain WMS and Generix WMS, Generix Group provides full-featured WMS functionality, high visibility and trackability, highly configurable automation platforms, and interactive on-the-job workforce training. The modern and intuitive visual interface supports real-time decision-making and critical business needs, including fast-moving consumer goods (FMCG) as well as slow-moving consumer goods (SMCG) industries.

Working together with Locus Robotics, Generix recently rolled out automated warehouse solutions across Europe that include Locus’s innovative autonomous mobile robots (AMRs).

Furthermore, with ever-increasing changes in the industry, Generix can swiftly accommodate high growth needs from level-1 warehouse operations up to level 5, thus allowing hyper-growth for clients while digital transformation exponentially accelerates organic growth.

Solochain WMS is built on a scalable and flexible platform that powers its use as a warehouse management system, a manufacturing execution system, a transportation management system, and more. Highly configurable in terms of information layout, mobile workflow processes, reporting, and optimization rules, the WMS’ technological infrastructure is designed for maximum configuration flexibility and performance scalability.

Solochain WMS adapts and scales to meet a company’s needs all from within the same warehouse facility. It’s a highly flexible and adaptive warehouse management system that’s built for companies that need their supply chains to be nimble, efficient, and scaling, while ensuring execution excellence, compliance, and operational stability. And, for companies that perform product transformation (manufacturing, product kitting, etc.), Generix’s fully native Manufacturing Execution System (MES) can be enabled in WMS for complete inventory visibility throughout work-in-progress stages.

The Power of One  

Highlighting Generix’s strengths, Gartner says the company is expanding with a new entity in the Netherlands, a software engineering center in Romania, and its services center in Portugal. The company is also growing in North America with more than one-quarter of its business now outside its home geography.

“Solochain is well-suited to combination manufacturing and warehouse operations because it offers a seamlessly integrated WMS and MES,” Gartner says in its review. “This goes beyond simple transactional integration and addresses complexities of process integration between the warehouse and the shop floor.”

Gartner goes on to say that Generix Solochain offers powerful visual tools to facilitate, accelerate, and enhance implementations, and to provide ongoing support. It provides a model-driven architecture and back-office capabilities that document every client interaction in the application, facilitating upgrades.

According to one Gartner peerinsights user review, the company’s Solochain implementation was a multi-phased project. The first phase involved implementing the core WMS software and the second phase was the full integration with the firm’s existing ERP systems.

“The Solochain implementation team focused closely on our business process. Understanding the nature and rationale of our operations was the priority,” the company says. “Solochain offers many great best practice features out of the box. Understanding that functionality and relating it to our processes allowed us to redesign poorly performing operations and optimize others. We found the implementation team to be open-minded and very knowledgeable.”

Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Generix Group North America:

Solutions exist today that can ensure any warehouse or distribution center operates at peak efficiency, 24 hours a day, seven days a week. 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.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. 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.