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Indonesia Boosts Cocoa Butter Exports to Australia and India to Offset Falling American Purchases

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Indonesia Boosts Cocoa Butter Exports to Australia and India to Offset Falling American Purchases

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

Indonesian cocoa butter exports remained robust in 2020, growing to $791M. The U.S., the Netherlands and India constitute the main markets for Indonesian cocoa butter, with a combined 49% share of the total exports. The supplies to the U.S. dropped by -20% y-o-y in value terms. Indonesia has compensated for these losses by boosting exports to Australia, India, Estonia, United Arab Emirates and the Netherlands. 

Indonesian Cocoa Butter Exports

In 2020, approx. 144K tonnes of cocoa butter were exported from Indonesia, remaining constant against 2019. In value terms, cocoa butter exports rose from $785M in 2019 to $791M (IndexBox estimates) in 2020.

The U.S. (38K tonnes), the Netherlands (21K tonnes) and India (12K tonnes) were the main destinations of cocoa butter exports from Indonesia, with a combined 49% share of total exports. These countries were followed by Germany, Estonia, Australia, Canada, China, Russia, Japan, Mexico, France and the United Arab Emirates, which together accounted for a further 44%.

In value terms, the U.S. ($209M), the Netherlands ($113M) and India ($65M) were the largest markets for cocoa butter exported from Indonesia, together comprising 49% of total exports.

In 2020, Indonesian supplies to the U.S. fell by -$54M compared to the previous year. By contrast, exports to Australia (+$16M), India (+$15M), Estonia (+$10M), United Arab Emirates (+$9M) and the Netherlands (+$9M) increased.

In 2020, the average cocoa butter export price amounted to $5,474 per tonne. Average prices varied noticeably for the major foreign markets. In 2020, the highest prices were recorded for prices to the United Arab Emirates ($5,659 per tonne) and China ($5,587 per tonne), while the average prices for exports to Germany ($5,172 per tonne) and the Netherlands ($5,394 per tonne) were amongst the lowest. In 2020, the most notable growth rate 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

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Biden Administration Shows Signs of Addressing China Trade Wars

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On October 4, 2021, Ambassador Katherine Tai, the United States Trade Representative, addressed the state of U.S.- China trade relations and the upcoming plans for the Biden Administration to improve foreign trade policy. Since taking office in January, the Administration has spent time reviewing the trade policies put in place under the Trump Administration. There has been little movement until now as to the stance the Biden Administration would take, which created uncertainty regarding U.S. trade policy with China. Speculation grew as many questioned what would happen with the tariffs imposed on Chinese imports (under Section 301), how the administration would address the shortcomings of the “Phase 1” deal, and whether the product exclusion process would be re-instated.


Ambassador Tai’s announcement confirmed that the Biden administration plans to have direct communication with China to re-enforce the Phase 1 deal.

In her announcement, Ambassador Tai explained the history of failed attempts at a bilateral agreement with China and explained that this ultimately led to the U.S. taking a unilateral approach to trade with China by instituting the Section 301 tariffs in 2018. She emphasized that the U.S. is open to exploring all options and tools to enforce meaningful trade reform moving forward, but that a first step would be to hold China accountable for the commitments that it made to settle the Section 301 trade dispute. It is important to note that negotiations have just now re-commenced and that there is no concrete action that the U.S. has said it will take; therefore, any speculation in the media about increases in tariffs, any retaliatory action, etc. are just that – speculation. Husch Blackwell is monitoring these events and will provide regular updates.

The Administration plans to explore a targeted Section 301 exclusion process to provide tariff relief.

Ambassador Tai indicated that part of the next steps would be to consider new exclusion processes and other trade remedies to strengthen American competitiveness. In particular, USTR announced on October 5, 2021, that it is opening up an opportunity to comment on new exclusions for previously excluded items where the exclusions had expired. Comments can be filed between October 12, 2021 and December 1, 2021. Certain factors will be considered by USTR in deciding whether to reinstate the exclusion, such as:

-The product’s availability from other sources in the United States or other countries.

-Supply chain changes that have impacted certain products or industries since 2018.

-What efforts have been made by the importer since 2018 to obtain the product from the U.S. or other third countries.

-Capacity to produce the product domestically in the U.S.

-Whether any economic harm may result from reinstating the exclusion either directly to businesses, employers, or supply chains, and the impact of the exclusion overall.

There are ongoing discussions on opening the exclusion process to additional products, but any process for such exclusions has not yet been announced.

The Administration intends to address broader policy concerns.

A source of concern among American workers for years has been China’s use of subsidies and other non-market trade practices that create unfair competitive advantages. Ambassador Tai pointed out the impact of China’s harmful practices in the steel, agriculture, solar, and semiconductor industries, to name a few. Within the steel industry in particular, it was noted that China’s monthly production of steel exceeds the amount of steel produced in the U.S. for an entire year. In the solar supply chain industry, the Ambassador noted that China’s practices have led to it dominating 80% of global production in that arena. To address this, the Biden Administration plans to address issues such as overcapacity and create additional opportunities to discuss issues that were not included in the previous agreement. If the U.S. and China cannot reach some resolution, it could mean new trade measures to address these concerns in the future. For now, the Administration is focused on working with its allies and collaborating with the G7, G20, and the WTO.

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Nithya Nagarajan is a Washington-based partner with the law firm Husch Blackwell LLP. She practices in the International Trade & Supply Chain group of the firm’s Technology, Manufacturing & Transportation industry team.

Jeffrey Neeley is a Washington-based partner with the law firm Husch Blackwell. He leads the firm’s International Trade Remedies team.

Jasmine Martel is an attorney in Husch Blackwell’s Houston office.

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Poland’s Cigarette Exports Skyrocket to Record $4B

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

Poland is the world’s largest supplier of cigarettes, accounting for 18% of global exports. In 2020, Poland’s cigarette supplies jumped by +14% y-o-y to $4B, reaching the highest level ever. In physical terms, Poland increased cigarette exports twofold in the past decade. In value terms, supplies abroad soared threefold since 2010. Germany remains the largest importer of cigarettes from Poland. German purchases spiked from $0.9B in 2019 to 1.4B in 2020. The average cigarette export price grew by +3.5% y-o-y to $20,824 per tonne in 2020. 

Poland’s Cigarette Exports by Country

Poland remains the world’s largest supplier of cigarettes, accounting for 18% of global export volume. Cigarette exports from Poland amounted to 192K tonnes in 2020, rising by +10% against 2019. In value terms, cigarette exports expanded by +14.3% y-o-y to $4B (IndexBox estimates) in 2020.

Germany (55K tonnes) was the main destination for cigarette exports from Poland, with a 29% share of total exports. Moreover, cigarette exports to Germany exceeded the volume sent to the second major destination, the UK (20K tonnes), threefold. The Netherlands occupied the third position in this ranking (17K tonnes), with a 9% share.

In value terms, Germany ($1.4B) remains the key foreign market for cigarette exports from Poland, comprising 34% of total exports. The second position in the ranking was occupied by Italy ($395M), with a 9.9% share of total exports. It was followed by the Netherlands, with an 8.6% share.

In 2020, the average annual growth rate in terms of value supplied to Germany stood at +46.2%. Exports to the other major destinations recorded the following average annual growth rates: Italy (-3.1% per year) and the Netherlands (-26.8% per year).

The average cigarette export price stood at $20,824 per tonne in 2020, picking up by +3.5% against the previous year. There were significant differences in the average prices for the major overseas markets. In 2020, the country with the highest price was Belgium ($34,439 per tonne), while the average price for exports to France ($11,472 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Saudi Arabia, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Global Trade Daily, Imports/Exports

Global Wheat Gluten Production Reduces Slightly but Exports Remain Robust

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

In 2020, global wheat gluten production reduced by -2.4% y-o-y to 1.1M tonnes. France, China and Belgium lead in world gluten manufacturing, with a combined 50%-share of its total volume. Global wheat gluten exports grew by +6% y-o-y to 928K tonnes in 2020. In value terms, world exports saw a drop, as the average wheat gluten export price decreased in the past year. Germany, Belgium and France were the largest gluten exporters in 2020. The UK and Poland recorded the highest export growth rates last year. Norway, Belgium, France and the Netherlands emerged as the countries with the highest per capita consumption figures. 

Global Wheat Gluten Production

In 2020, global wheat gluten production shrank slightly to 1.1M tonnes, falling by -2.4% on the year before. In value terms, wheat gluten production declined to $1.6B in 2020, estimated at export prices.

The countries with the highest volumes of wheat gluten production in 2020 were France (242K tonnes), China (159K tonnes) and Belgium (158K tonnes), together comprising 50% of global production. These countries were followed by Germany, Australia, Russia, Lithuania, the UK, Poland, Italy and Austria, which together accounted for a further 48%.

Wheat Gluten Exports by Country

Global wheat gluten exports amounted to 928K tonnes in 2020, increasing by 6% against the previous year. In value terms, wheat gluten exports dropped from $1.4B in 2019 to $1.3B (IndexBox estimates) in 2020.

In 2020, Belgium (135K tonnes), Germany (132K tonnes), France (125K tonnes), Australia (110K tonnes) and China (88K tonnes) were the major wheat gluten exporters in the world, together comprising 64% of total export. Poland (58K tonnes) occupied the next position in the ranking, followed by Russia (52K tonnes), Lithuania (50K tonnes), the UK (47K tonnes) and the Netherlands (43K tonnes). All these countries together took near 27% share of total exports.

In value terms, Germany ($211M), Belgium ($178M) and France ($170M) featured the highest levels of exports in 2020, together comprising 42% of global exports. These countries were followed by Australia, China, Poland, Lithuania, Russia, the UK and the Netherlands, which together accounted for a further 47%.

The UK (+88% y-o-y) and Poland (+33% y-o-y) saw the highest gluten export spikes in value terms. At the same time, the Netherlands (-28% y-o-y), Belgium (-20% y-o-y) and France (-14% y-o-y) recorded the most prominent drop in supplies abroad.

The average wheat gluten export price stood at $1,423 per tonne in 2020, decreasing by -9% against the previous year. Average prices varied somewhat amongst the major exporting countries. In 2020, major exporting countries recorded the following prices: in Germany ($1,597 per tonne) and Australia ($1,525 per tonne), while the UK ($1,274 per tonne) and China ($1,283 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by China, while the other global leaders experienced a decline in the export price figures.

Wheat Gluten Consumption by Country

In 2020, the highest levels of wheat gluten per capita consumption were registered in Norway (39 kg per person), followed by Belgium (4.38 kg per person), France (2.61 kg per person) and the Netherlands (2.21 kg per person). The world average per capita consumption of wheat gluten was estimated at 0.15 kg per person.

Source: IndexBox Platform

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American Exports of Organic Surface-Active Agents Go Up

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

American exports of organic surface-active agent exports increased by +5.6% y-o-y to $3.5B in 2020. In physical terms, exports grew by +3.7% y-o-y to 1.4M tonnes. Canada remains the largest importer of organic surface-active agents from the U.S., comprising a 55% share of American exports. Mexico and China follow Canada in this ranking. Last year, all three countries recorded moderate growth in imports of the product from America. In 2020, the U.S. average export price for organic surface-active agents grew by +1.8% y-o-y to $2,584 per tonne.

U.S. Exports of Organic Surface-Active Agents

In 2020, the amount of organic surface-active agents exported from the U.S. reached 1.4M tonnes, surging by +3.7% on the previous year. In value terms, exports of organic surface-active agents rose by +5.6% y-o-y to $3.5B (IndexBox estimates) in 2020.

Canada (756K tonnes) was the main destination for organic surface-active agent exports from the U.S., with a 55% share of total exports. Moreover, surface-active agent exports to Canada exceeded the volume sent to the second major destination, Mexico (108K tonnes), sevenfold. China (54K tonnes) ranked third in terms of total exports with a 3.9% share.

In 2020, the average annual rate of growth in terms of volume to Canada amounted to +6.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mexico (+8.8% per year) and China (+8.3% per year).

In value terms, Canada ($1.5B) remains the key foreign market for surface-active agent exports from the U.S., comprising 43% of total exports. The second position in the ranking was occupied by Mexico ($249M), with a 7% share of total exports. It was followed by China, with a 5.9% share.

The average export price for organic surface-active agents stood at $2,584 per tonne in 2020, growing by +1.8% against the previous year. Prices varied noticeably by country of destination. The country with the highest price was Taiwan ($5,214 per tonne), while the average price for exports to Canada ($1,989 per tonne) was among the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Taiwan, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

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U.S. Court of International Trade Stays Department of Commerce’s Motion for Voluntary Remand Setting Course for Court-Annexed Mediation in Section 232 Exclusions Dispute

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On September 30, 2021, the Department of Commerce (“Commerce”) filed a motion requesting a voluntary remand to review 502 Section 232 exclusion request denials it issued to Voestalpine High Performance Metals Corporation and Ergo Specialty Steels, Incorporated (collectively “Voestalpine, et al.”) beginning in 2018. Specifically, Commerce in its motion acknowledges that it lacks documentation explaining why it rejected all 502 requests. This motion for voluntary remand comes only a couple months after Commerce requested the same type of voluntary remand in six separate Section 232 appeals.

In its September 15, 2021, order, the court rejected Commerce’s motions for voluntary remand and instead consolidated the six separate cases concerning similar denials of Section 232 exclusion requests and collectively referred the cases to court-annexed mediation. Specifically, the court ordered that (1) all cases are stayed for a maximum of 90 days beginning September 15th in which time mediation should be conducted and concluded, and (2) all cases be returned to the active calendar unless settlement is reached during the mediation process.

The court seems set to follow the same course in Voestalpine et al.’s appeal. On October 1, 2021, the CIT issued an order (1) staying Plaintiffs time to respond to Commerce’s September 30th motion until further notice and (2) requiring both parties to file statements on whether this case should be referred to court-annexed mediation.

Commerce in its statement filed on October 6, 2021, opposes the court-annexed mediation. In its statement, Commerce argues that the differences in the products that are the subject of the exclusion requests do not allow for a speedy resolution through mediation. Commerce also points out that in Voestalpine et al.’s initial complaint, the relief sought was a remand to Commerce.

Voestalpine et al., in its statement filed on October 8, 2021, rebuts both of Commerce’s arguments and supports court-annexed mediation. In its statement, Voestalpine et al. points out that the issue is not that Commerce denied the exclusion requests, but rather that it did not include the reasoning behind any denials at issue. Voestalpine et al. also argues that it did not seek relief through remand to Commerce merely for reconsideration of the exclusion requests. Rather, it sought a remand to Commerce with a requirement “to refund the Section 232 tariffs previously paid by Plaintiffs.”

It appears there may be a trend developing. The court seems reluctant to allow these actions to fully go back to Commerce while, at the same time, it is reluctant to provide plaintiffs the relief sought: a declaration that Commerce’s denials were unlawful.

It may also be that the court is waiting to see whether global politics will impact the status of Section 232 tariffs in the near future. Either way, it seems likely that this case will be referred to the same mediation process as the cases earlier this year and that a trend of court-annexed mediation is developing where Section 232 exclusion request denials are concerned.

As a reminder, the Trump Administration instituted Section 232 national security tariffs on steel and aluminum in 2018 and also set up an exclusion process for importers if they met certain qualifications and were able to demonstrate that the product was not available from any other source and did not harm national security interests. The exclusions were granted on a product-specific and importer-specific basis.

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Nithya Nagarajan is a Washington-based partner with the law firm Husch Blackwell LLP. She practices in the International Trade & Supply Chain group of the firm’s Technology, Manufacturing & Transportation industry team.

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The U.S. Doubles Its Protein Concentrate Exports in Past Decade

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IndexBox has just published a new report: ‘U.S. – Protein Concentrates And Flavoured Or Coloured Sugar Syrups – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In the past decade, American protein concentrate exports doubled, reaching $873M in 2020. Last year, protein concentrate exports from the U.S. decreased slightly in physical terms but kept stable in value terms. Canada, Mexico and the Netherlands constitute the major importers of American proteins, with a combined 36%-share of the total U.S. exports. The average U.S. export price for protein concentrates soared by +15% y-o-y to $6,578 per tonne in 2020.

American Protein Concentrate Exports

American protein concentrate exports doubled in the past decade, from $394M in 2010 to $873M (IndexBox estimates) in 2020. Last year, exports in value terms remained relatively unchanged as compared to the figures of 2019. In physical terms, approx. 133K tonnes of protein concentrates were exported from the U.S. in 2020, shrinking by -12.8% against the year before.

Canada (19K tonnes), Mexico (18K tonnes) and the Netherlands (11K tonnes) were the main destinations of protein concentrate exports from the U.S., with a combined 36% share of total exports. These countries were followed by South Korea, the UK, Australia, Japan, Colombia, Germany, Thailand, Guatemala, Spain and Switzerland, which accounted for a further 28%.

In value terms, the largest markets for protein concentrate exported from the U.S. were Canada ($141M), South Korea ($102M) and the Netherlands ($74M), with a combined 36% share of total exports. Mexico, Thailand, Australia, Japan, the UK, Colombia, Germany, Switzerland, Guatemala and Spain lagged somewhat behind, comprising a further 29%.

In 2020, Switzerland saw the biggest increases in imports from the U.S. American exports to Switzerland grew from $0.5M to $8.0M over the last year.

In 2020, the average U.S. export price for protein concentrates amounted to $6,578 per tonne, surging by +15% against the previous year. There were significant differences in the average prices for the major foreign markets. In 2020, the country with the highest price was Thailand, while the average price for exports to Spain was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to South Korea, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

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INTERMODAL IS HOT: HOW SIX CITIES ARE MEETING LONG-HAUL CHALLENGES

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How hot is intermodal right now? Total volumes rose 20.4% year-over-year in the second quarter of 2021, according to the Intermodal Association of North America (IANA) Intermodal Quarterly report. 

International containers gained 24.8% from 2020; domestic shipments, 15.7%; and trailers, 18.5%, according to the Calverton, Maryland-based association’s report, which also found that intermodal volumes not only grew for the fourth consecutive quarter in Q2, but the double-digit gain was the largest quarterly increase since Q3 of 2010 as well as the sixth quarter with a double-digit growth rate in the history of the data. 

“What is noteworthy is the breadth of the gains,” said Joni Casey, president and CEO of IANA, before September’s IANA Expo in Long Beach, California, where the Q2 surge was a source of industry optimism. “With one or two exceptions, the three market segments showed positive performance in all of IANA’s 10 regions.”

Trans-Canada led with a 29.6% total growth increase, followed by the Southeast-Southwest at 28.9% and the Midwest-Northwest at 26.6%. The Intra-Southeast likewise posted a 25.9% increase; the South Central-Southwest, 24.5%; and the Midwest-Southwest, 21.8%. The Northeast-Midwest came in at 20.9%.

“Freight volumes are expected to slow but experience steady q/q growth into 2022,” forecasts the 2021 Second Quarter Intermodal Quarterly report. “For 2021 as a whole, truck loadings are forecasted to be 7% higher than 2020 levels.”

Freight demand pressures, the end of consumer stimulus infusions and unemployment supplement and the ongoing surge in small new trucking companies have complicated matters, according to the report. “Intermodal remains highly competitive with trucking due to very high rates and tight driver supply. 

This situation will likely continue at least into early 2022, however, could be affected by a quicker stabilization in the trucking market, as reflected by a peak in truck spot metrics.” 

Managing the ups and downs of intermodal transport is greatly assisted by the IANA, whose roster includes more than 1,000 members from railroads, ocean carriers, ports, intermodal truckers and over-the-road highway carriers, intermodal marketing and logistic companies, and suppliers to the industry. (Learn more at intermodal.org.) But at the hyper-local level, economic development corporations (EDCs) also play a role in keeping freight trains rolling. Below are six cities meeting intermodal challenges with the help of their EDCs.

MILLERSBURG, OREGON

The Albay-Millersburg Economic Development Corporation estimates that 81% of the exported agricultural products from the Mid-Willamette Valley of Southern Oregon are loaded onto ships at the Seattle and Tacoma ports, with the remainder exported from ports in Long Beach (8 percent) and Oakland (3 percent), California. 

Complicating the flow of produce is traffic congestion near Portland, Seattle, Tacoma and farther down Interstate 5 into California.

However, like an oasis of calm sits Millersburg, which allows agricultural producers in the region to consolidate their products efficiently and avoid bumper-to-bumper nightmares altogether. To that end, the Linn Economic Development Group (LEDG), which is an affiliate of the Albay-Millersburg EDC, is constructing the Mid-Willamette Valley Intermodal Center (MWVIC) in Millersburg.

The town of around 2,000 people just happens to be where the Union Pacific Railroad mainline, BNSF’s Portland Western Railroad and I-5 come together. The MWVIC was made possible by passage of the state’s Keep Oregon Moving legislation, which appropriated $25 million toward development.

The intermodal center will include a main office, parking lot, space for about 100 trucks to park overnight, amenities for truck drivers, capabilities to handle domestic and international containers, track space for inbound and outbound trains, a 60,000-square-foot storage warehouse and docks to support reloading and transloading onto rail, with capacity for longer-term storage of product.

Agricultural producers and train operators are not the only beneficiaries of the project. Shippers will now have the option of choosing the best transportation alternative for each individual load. The LEDG estimates that under full utilization, private transportation cost savings will total $2.1 million per year.

But the public should turn out to be the biggest winner. Reducing the number of trucks on the highways would lower maintenance costs, reduce congestion, improve air quality and decrease carbon emissions—while the MWVIC at the same time increases jobs and local spending. 

ALLENTOWN, PENNSYLVANIA

The Norfolk Southern Allentown Rail Yard is among the railroad’s largest facilities, but only a few of the 200 manufacturers in the Pennsylvania town transport goods by rail. The Allentown Economic Development Corporation would like to change that. Saying of the yard “we’re very fortunate to have it,” Scott Unger, executive director of the Allentown EDC, says he and his team are pulling out all the stops to increase rail usage.

Pennsylvania’s Bureau of Rail Freight administers a special grant program called the Rail Freight Assistance Program that provides financial assistance to companies that are interested in bringing a railroad spur directly to their property for freight shipments. The goal of the grant program is to preserve and stimulate economic development through new and expanded rail service.

Also hoping the state incentive program lights a fire under local manufacturers is the R. J. Corman Railroad Co., LLC, which owns 11 Class 3 short line railroads in the Mid-Atlantic and the South, as well as the R. J. Corman Allentown Rail Yard.

“Products that are ideal for transloading include palletized commodities which can be loaded and unloaded in a boxcar,” explained John Gogniat, director of Commercial Development for R. J. Corman. “In addition, products such as lumber or steel that can be unloaded with a forklift are ideal candidates. That said, we are open to entertaining any potential commodity and will develop a mutually desirable solution for its loading and unloading.”

Gogniat notes that Allentown’s strategic location provides access to Philadelphia, Scranton, York, Harrisburg, Wilmington, New York and beyond.

WILKES COUNTY, NORTH CAROLINA

The North Carolina Department of Transportation’s Rail Industrial Access Program also uses state funds to help construct or refurbish railroad spur tracks required by a new or expanding company. Program funding is intended to modernize railroad tracks to ensure effective and efficient freight deliveries.

Many companies taking advantage of the incentive are located in Wilkes County, which was established in 1777 and is still known today as a mecca for outdoor recreation, small-town living . . . and a big business mentality. 

Consider the Yadkin Valley Railroad, which offers Wilkes County businesses rail access to ship their products into the Ronda and Roaring River areas. Operating out of the Winston-Salem area and hauling 11,500 carloads per year with freight, Yadkin joins G&O’s short line railroads, which offer connections to CSX and Norfolk Southern, in figuring into the logistical operations of Charlotte Regional Intermodal Facility.

Wilkes County Economic Development Corporation will point businesses to other local and state incentive programs to improve rail access—dependent on the applicant’s potential to create new jobs and invest capital in the region. The aim is to get companies to locate or expand in North Carolina versus another state.

“The North Carolina Railroad Company partners with the state’s economic development community and railroads on initiatives designed to drive job creation, freight rail use and economic growth,” reads an EDC release. “Through NCRR Invests we evaluate requests for investments to address the freight rail infrastructure needs of companies considering location or expansion in the state.” 

But Wilkes County does not live by rail alone, as the EDC also trumpets a location that is close to major freeways and interstates, two international airports (Charlotte Douglas and Piedmont Triad) and three major East Coast ports (Wilmington, North Carolina; Norfolk, Virginia; and Charleston, South Carolina). 

NEW YORK, NEW YORK

An ambitious program was born out of congestion, pollution and unconnected cargo transportation options in the Big Apple. Freight NYC aims to expand the use of rail and water to move food, building materials and other goods that are normally trucked in from outside the five boroughs.

“Freight NYC will better equip New York City to meet 21st-century demand by modernizing the city’s freight infrastructure, reducing truck traffic and improving air quality, while creating nearly 5,000 good-paying jobs in the process,” says James Patchett, chief executive of the New York Economic Development Corporation. “This plan is a win-win for our environment and economy.”

The city would invest as much as $100 million in the program that would include a 500,000-square-foot distribution center on the site of the Brooklyn Army Terminal, adjacent to the New York New Jersey Rail carfloat hub, as well as a new air cargo center near John F. Kennedy International Airport in Queens.

Private participation in a $20-30 million barge terminal on five acres of land owned by the city in Hunts Point, a major distribution crossroads for produce in the Bronx, is also part of the multimodal plan. 

Small rail freight yards on a line through Brooklyn and Queens, where goods would be transloaded to smaller vehicles for final delivery, is also envisioned.

DECATUR, ILLINOIS

When you think of the granddaddy of rail operations in the Midwest, you think of Chicago. That’s part of . . . heck, the main problem, according to Nicole Bateman, president of the Decatur Economic Development Corporation and executive director of the Midwest Inland Port. The Windy City is not only the nation’s busiest rail freight gateway, it’s the third-largest intermodal container/trailer port in the world, following Singapore and Hong Kong, according to the Illinois Department of Transportation.

What comes to mind when you think about freight, Singapore and Hong Kong? Congestion. As such, shippers on both ends of the supply chain need alternatives to Chicago—which is where Decatur (as Bateman’s fingers cross) comes in. 

Located 160 miles southwest of Chicago, Decatur is now being propped up by its EDC and the Midwest Inland Port as a distribution transportation center, which is fed not only by four railroads but easy access to interstates and airports. The port association is utilizing public-private partnerships to capitalize on Decatur’s geographic location, while the EDC seeks to make the city Illinois’ designated downstate freight transportation hub as a way to relieve rail and highway congestion in Chicago.

Users of the Midwest Inland Port have experienced savings in freight transportation costs and significant reduction in transit times, Bateman recently told American Shipper.

SEGUIN, TEXAS

Talk about strategic locations, Seguin sits alongside Interstate 10 and the banks of the Guadalupe River, with San Antonio a mere 35 minutes to the west, Austin only 55 minutes north and Houston about 2 ½ hours to the east.  

Besides the easy access to I-10, Seguin also connects to State Highway 130, which it bills as “the safe, fast and reliable alternative to congested Interstate 35 in Central Texas.” Two international airports (San Antonio and Austin-Bergstrom) and two deep-water ports (Houston and Corpus Christi) are an hour of so away.

But perhaps the biggest jewel in the close proximity crown is Union Pacific’s San Antonio Intermodal Terminal (SAIT), a $100 million state-of-the-art facility designed to support the growing intermodal volume in southern Texas. The expansive facility is designed to handle 250,000 annual container lifts as it serves markets across South Texas.  

If that hasn’t sold you, allow the Seguin Economic Development Corporation to work its magic. The EDC helps guide businesses through the maze of available loans, grants and tax breaks from the city, county and state. To hear the EDC tell it, finding applicants should be no sweat considering Seguin’s “easy access to four of the United States’ largest consumer markets, allowing manufactures to get their products to millions of consumers, all within a five-hour drive.”

glycerol
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World Glycerol Trade Intensifies

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

In the past decade, global glycerol exports saw a twofold increase both in physical and value terms. In 2020, glycerol exports grew by +2.3% y-o-y to $1.3B. In physical terms, exports soared by +8.5% y-o-y to 1.9M tonnes last year. Indonesia, Germany and Malaysia constitute the largest glycerol exporters worldwide. China, the U.S. and the Netherlands feature among the largest markets for imported glycerol. In 2020, South Korea recorded the highest import growth rate, while India, China, the Netherlands, Italy, France, the UK, Spain and the Czech Republic also boosted glycerol purchases abroad. 

Global Glycerol Exports

Over the past decade, global exports of glycerol increased twofold, both in volume and value terms. In 2020, global exports of glycerol were estimated at 1.9M tonnes, increasing by +8.5% against the year before. In value terms, exports rose by +2.3% y-o-y to $1.3B (IndexBox estimates) in 2020.

In 2020, Indonesia (524K tonnes), distantly followed by Malaysia (331K tonnes), Germany (263K tonnes), the Netherlands (223K tonnes) and Brazil (95K tonnes) represented the main exporters of glycerol, mixing up 77% of total exports. Argentina (69K tonnes), Thailand (43K tonnes), Belgium (38K tonnes), the U.S. (33K tonnes) and Poland (29K tonnes) held a little share of total exports.

In value terms, Indonesia ($310M), Germany ($219M) and Malaysia ($209M) appeared to be the countries with the highest levels of exports in 2020, with a combined 58% share of global exports. The Netherlands, Brazil, the U.S., Belgium, Argentina, Thailand and Poland lagged somewhat behind, together accounting for a further 28%.

In 2020, the average glycerol export price amounted to $681 per tonne, falling by -5.7% against the previous year. There were significant differences in the average prices amongst the major exporting countries. In 2020, the country with the highest price was the U.S., while Argentina was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Poland, while the other global leaders experienced more modest paces of growth.

Key Glycerol Importers

In 2020, China (427K tonnes), distantly followed by the U.S. (141K tonnes) and the Netherlands (127K tonnes) represented the key importers of glycerol, together comprising 36% of total imports. The following importers – Japan (76K tonnes), France (66K tonnes), South Korea (61K tonnes), the UK (56K tonnes), India (55K tonnes), Mexico (52K tonnes), Spain (49K tonnes), Italy (45K tonnes), Thailand (45K tonnes) and Germany (44K tonnes) – together made up 29% of total imports.

In value terms, the largest glycerol importing markets worldwide were China ($232M), the U.S. ($121M) and the Netherlands ($65M), with a combined 33% share of global imports. These countries were followed by Japan, France, South Korea, the UK, Spain, Germany, Italy, Mexico, India and Thailand, which together accounted for a further 31%.

South Korea saw the highest imports growth rate, doubling the value of purchases from abroad last year. Among other largest importers, India, China, the Netherlands, Italy, France, the UK, Spain and the Czech Republic ramped up their imports significantly in 2020.

Source: IndexBox Platform

IoT
3pls, Archives, Global Logistics, Global Trade Daily, Software

KEEP AN EYE ON IoT: THE FUTURE IS NOW WHEN IT COMES TO TECH’S ROLE IN SUPPLY CHAIN MANAGEMENT

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The Internet of Things is a revolutionary technology of today. If implemented optimally, it can bring about immense benefits in different industries including transportation, retail, healthcare, finance and supply-chain management. For processes like forecasting, management and oversight applications, IoT can assist fleet managers in improving the operational efficiency of distribution along with adding transparency to the decision-making process. 

IoT can play a vital role in improving supply chain management, with its main applications in tracking and monitoring processes. Additionally, IoT can be applied to other processes.

TRACKING LOCATION IN REAL-TIME

The IoT can help provide real-time data of a product’s location and its transportation environment. It can be tracked at all times and you can get real-time alerts if anything goes wrong during transportation and can monitor the delivery of raw materials and ready goods.

With environmental sensors, shipments can now be tracked for internal conditions such as the inside temperature of the vehicle, humidity, pressure and other factors that can potentially adversely affect the product.

C.H. Robinson ties its recognition as a challenger in the 2021 Gartner Magic Quadrant for Real-Time Transportation Visibility Platforms to the Eden Prairie, Minnesota-based global logistics company’s solutions such as Navisphere Vision. Delivered by C.H. Robinson’s TMC division, Navisphere Vision’s IoT device integrations allow shippers to monitor and immediately mitigate issues when freight is impacted by shock, tilt, humidity, light, temperature or pressure.

Recognition is great, but to expand on C.H. Robinson’s newer capabilities, the company has announced it will invest $1 billion in technology over the next five years or double its previous investment. 

“Several major events over the past year have emphasized the vital importance of supply chains, but also highlighted their fragility in some cases,” explains Jordan Kass, TMC president. “The companies who will excel in the years to come will be those with real-time visibility into their supply chains. The ability to consume, combine and analyze data from the growing number of integrations and data points will be essential for building a resilient, competitive and profitable supply chain.”

24/7 20-20 VISION

IoT devices help managers in making decisions about product arrivals and increasing delivery forecast precision. Not only does it help predict final delivery date, but it also assists in mitigating risks before they can occur. 

With real-time location trackers, warehouse employees can track the exact aisle for specific parcels. When paired up with artificial intelligence, it also allows for automated vehicles to retrieve a particular package without any human supervision. And tools such as smart glasses assist the warehouse workers and ensure that they spend lesser time in completing their task. Furthermore, IoT gathers data which allows for continual improvement and increased efficiency as the process continues. 

“Faced with the acceleration of e-commerce and new consumer demands, the automatization of logistics warehouses is an essential response to handle growing flows in an ever-shorter timeframe,” says Philippe de Carné, executive vice president, Business Development, Innovation & Business Excellence at global supply chain operator GEODIS, which has about 50 automated sites worldwide.

“The arrival of increasingly autonomous intelligent robots and a constant search for competitiveness are paving the way for increased automatization,” notes Antoine Pretin, vice president of the GEODIS Engineering Group. “Such solutions provide great leverage to improve performance and assist in order preparation in e-commerce warehouses, reducing repetitive tasks, but also gaining quality and reactivity.”

MORE BENEFITS IN SUPPLY CHAIN MANAGEMENT

IoT devices help plan and change transportation routes by considering any accidents or delay-causing occurrences along the way. Thus, it allows for optimal path while developing contingency planning and getting to the cause of delays. 

In terms of increasing operational efficiency and reducing operating costs, IoT SCM platforms exponentially increase the speed of supply chain efficiency. The IoT helps reduce feedback cycle, allows quick decision-making, mitigates risks and improves goods-locating efficiency in the warehouse. 

Connected platforms are easily accessible and faster than on-premise systems. With a cloud-based IoT system in place, supply chain managers can ensure that all concerned stakeholders can access important information. Furthermore, a connected IoT service can give insights for particular scenarios, thus helping the workers throughout the supply-chain process. 

IoT also gives a detailed insight to supply chain managers on goods turnover. This assists the managers and retailers estimate how many units of each product they need for shelving. It also increases accuracy by avoiding human error and helping in the identification of packages, while also avoiding financial overheads that are otherwise incurred in the form of time and money. 

Bethesda, Maryland-based aerospace and defense contractor Lockheed Martin recently signed an agreement with SyncFab, a Silicon Valley distributed manufacturing platform, to streamline supplier capabilities across Switzerland. How? SyncFab will provide Lockheed Martin with direct access to its parts procurement and secure supply chain platform that connects Original Equipment Manufacturers to members of Swissmem, which represents Switzerland’s mechanical and electrical engineering industries. 

“SyncFab is honored and privileged to work with Lockheed Martin in our mission to expand access and digitally transform Swiss Industrial Supply Chains in partnership with Swissmem,” said SyncFab founder and CEO Jeremy Goodwin, who bills his company’s platform as the first Supply Chain Blockchain solution for parts suppliers and buyers. 

The platform works as a “matchmaker” between OEMs and SMEs, enabling SMEs to compete for long-term supply chain opportunities with large international companies. This platform has already helped mechanical engineering and electronics firms in the U.S. provide products and services to large OEMs, including electronics, aerospace, automobile, medical technology, and renewable energy.

Other top defense suppliers such as Thales, RUAG and Mercury have joined the SyncFab platform consortium as has the Cleveland, Ohio-based National Tooling and Machining Association (NTMA) and its more than 1,400 SME supplier members.

IoT also allows for sorting data and determining patterns to indicate potential reasons for improving or hindering the profitability of the goods. It helps supply chain managers and retailers segment the goods according to the target audience. Thus, businesses can better understand which product is preferred by which particular segment of customers. 

Perhaps the one to put it best about IoT’s growing and important role in supply-chain management is Bill Berutti. He’s the CEO of Troy, Michigan-based Plex Systems, whose cloud-based Smart Manufacturing Platform assists with manufacturing execution, ERP, quality management, supply chain planning and management, tracking, Industrial IoT and analytics. 

“Smart manufacturing isn’t something that will happen years down the road,” Berutti says. “It’s real, it’s imperative and it’s happening now.”

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A Certified Information Systems Security Professional (CISSP) specializing in network and IoT security, David Smith has written for Cybersecurity.att.com, Staysafeonline.org and Eccouncil.org. Learn more at thesmartcardinstitute.com.