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World Potato Trade Slips Under $5B

potato

World Potato Trade Slips Under $5B

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

Global potato exports dropped from $5.1B in 2019 to $4.3B in 2020. France, the Netherlands and Germany constitute major potato exporters worldwide. In 2020, the average potato export price amounted to $327 per tonne, decreasing by -6.3% y-o-y. Belgium, a country with one of the highest per capita potato consumption figures, remains the world’s largest importer. Over the last year, most importing countries have reduced their potato purchases. By contrast, Belgium, Spain, the U.S., Uzbekistan, Ukraine, the Czech Republic and the UK boosted their imports. 

Global Potato Exports by Country

Global potato exports shrank to 13M tonnes in 2020, dropping by -11.3% compared with the year before. In value terms, potato exports plummeted from $5.1B in 2019 to $4.3B (IndexBox estimates) in 2020.

The biggest shipments were from France (2.3M tonnes), the Netherlands (2M tonnes) and Germany (1.9M tonnes), together recording 48% of total export. It was distantly followed by Belgium (1M tonnes), comprising a 7.7% share of total exports. Egypt (561K tonnes), Canada (530K tonnes), the U.S. (506K tonnes), China (442K tonnes), Kazakhstan (318K tonnes), India (298K tonnes), Spain (285K tonnes), the UK (279K tonnes) and Pakistan (276K tonnes) occupied a relatively small share of total exports.

In value terms, the Netherlands ($826M), France ($684M) and Germany ($374M) were the countries with the highest levels of exports in 2020, with a combined 44% share of global exports. Canada, China, the U.S., Egypt, Belgium, the UK, Spain, India, Pakistan and Kazakhstan lagged somewhat behind, together accounting for a further 39%.

In 2020, the average potato export price amounted to $327 per tonne, falling by -6.3% 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 China, while Kazakhstan was amongst the lowest.

World’s Largest Potato Importers

In 2020, Belgium (3M tonnes), distantly followed by the Netherlands (1.6M tonnes), Spain (0.9M tonnes) and Germany (0.7M tonnes) were the main importers of potatoes, together achieving 43% of total imports. Italy (618K tonnes), the U.S. (501K tonnes), Uzbekistan (409K tonnes), Portugal (378K tonnes), France (331K tonnes), Ukraine (285K tonnes), Russia (241K tonnes), Malaysia (236K tonnes) and Canada (233K tonnes) followed a long way behind the leaders.

In value terms, Belgium ($595M), the Netherlands ($345M) and Spain ($314M) were the countries with the highest levels of imports in 2020, together accounting for 28% of global imports. The U.S., Germany, Italy, France, Russia, Portugal, Canada, Malaysia, Ukraine and Uzbekistan lagged somewhat behind, together accounting for a further 30%.

Most importing countries have reduced their purchases over the last year. Belgium, Spain, the U.S., Uzbekistan, Ukraine, the Czech Republic and the UK were among the few countries that increased their imports in 2020.

The countries with the highest levels of potato per capita consumption in 2020 were Belarus (608 kg per person), Belgium (522 kg per person) and Ukraine (474 kg per person).

Source: IndexBox Platform

fruit

Global Frozen Fruit Trade Grows Robustly

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

Global frozen fruit imports continue to grow in physical terms, expanding twofold over the past decade. In 2020, global imports rose by +3% y-o-y to 2.7M tonnes. In value terms, imports reached $5.8B last year. The U.S. and Germany remain the largest importers of frozen fruits worldwide, with a combined 34%-share of the global figure. The U.S. featured the highest growth rate of imports in physical terms in 2020. The average global frozen fruit import price amounted to $2,121 per tonne in 2020, increasing by +8.2% y-o-y. 

Global Frozen Fruit Imports by Country

In 2020, global imports of frozen fruits amounted to 2.7M tonnes, increasing by +3% on 2019 figures. In value terms, frozen fruit imports expanded by +11.4% y-o-y to $5.8B (IndexBox estimates) in 2020. Global frozen fruit imports have expanded twofold in the past decade.

In 2020, the U.S. (544K tonnes) and Germany (376K tonnes) constituted the key importers of frozen fruits worldwide, together comprising approx. 34% of total imports. France (186K tonnes) occupied the next position in the ranking, followed by the Netherlands (159K tonnes). All these countries together held approx. 13% share of total imports. The following importers – Poland (115K tonnes), Belgium (113K tonnes), the UK (107K tonnes), Canada (100K tonnes), China (98K tonnes), Russia (95K tonnes), Japan (82K tonnes), Austria (66K tonnes) and Australia (55K tonnes) – together made up 31% of total imports.

In 2020, the most notable growth rate in purchases amongst the leading importing countries was attained by the U.S. (+19.7% y-o-y), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest frozen fruit importing markets worldwide were the U.S. ($1.1B), Germany ($675M) and China ($428M), with a combined 39% share of global imports.

The average frozen fruit import price stood at $2,121 per tonne in 2020, growing by +8.2% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was China ($4,385 per tonne), while Russia ($1,148 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Austria, while the other global leaders experienced more modest paces of growth.

World’s Largest Suppliers of Frozen Fruits

In 2020, Poland (335K tonnes), followed by Serbia (205K tonnes), Canada (201K tonnes), Mexico (159K tonnes), China (133K tonnes), the Netherlands (115K tonnes) and Egypt (113K tonnes) represented the major exporters of frozen fruits, together constituting 52% of total exports. Peru (101K tonnes), the U.S. (101K tonnes), Morocco (85K tonnes), Costa Rica (75K tonnes), Belgium (73K tonnes) and Germany (61K tonnes) occupied a relatively small share of total exports.

In value terms, the largest frozen fruit supplying countries worldwide were Poland ($551M), Canada ($436M) and Serbia ($428M), together comprising 28% of global exports. These countries were followed by Mexico, Peru, the U.S., the Netherlands, China, Belgium, Egypt, Germany, Morocco and Costa Rica, which together accounted for a further 38%.

Source: IndexBox Platform

checkout

Top 4 Trends Enhancing Self-Checkout System Market Size through 2027

The higher acceptance of compact kiosks designed with user-friendly interfaces will significantly augment the self-checkout system market. The escalating labor costs, specifically in Europe have stirred the need for automated systems to limit the involvement of staff and let end-users complete the checkout processes. The growing incursion of AI and machine learning techniques into the self-checkout software for enhanced functionalities and effective transaction handling will additionally influence the industry prospects.

In this regard, as per the recent study by Global Market Insights, Inc., the global self-checkout system market will reach a valuation of over USD 6.5 billion by 2027.

Here is a peek into some factors driving the overall market growth in the coming years:


Space benefits of wall-mounted/countertop systems

Industry share of wall-mounted/countertop systems is expected to grow in the forecasted timeline. This is ascribing to their increasing preference by small restaurant owners and medium-sized retailers as they are ideal for places having space constraints. Considering the surging number of retailers and restaurants looking for automated processes, self-checkout machine manufacturers are coming up with various solutions to offer powerful computational features in compact designs.

For instance, Advanced Kiosks introduced a self-checkout system comprising amplified speakers and a 17-inch touch screen LCD monitor to offer enhanced customer comfort.

Higher presence in the travel sector

Demand for self-service checkout systems in travel applications will grow with the increasing international passenger traffic. This has led transportation authorities to deploy advanced solutions for mitigating the checkout time to offer traveler convenience. The International Air Transport Association has estimated that around 80% of the global passengers will employ a complete self-service system produced under the association standards by 2020.

For instance, leading American travel experience provider, Hudson, in January 2021, deployed Amazon’s Just Walk Out technology, Self-service Bag Drop (SSBD) across a few travel convenience stores to limit traveler check-in times.

The retail industry as a big booster

The retail sector will see higher adoption of self-checkout machines through 2027 driven by rising advancements and the assistance to retailers in keeping the stores open in the absence of a workforce. According to a survey that analyzed the shopping habits of U.S. consumers, over 73% of respondents preferred self-service technologies for improved retail shopping experiences and reduced staff interactions.

The growing preference of consumers for fast checkouts with standalone kiosks has encouraged retailers to operate their stores with minimum employees. In addition, the systems help customers to scan as well as pay for their products by themselves, allowing retailers to provide enhanced customer comfort with busted long queues at the payment counters.

Expanding tourism sector in MEA

The Middle East & African self-checkout system industry will gain traction owing to the higher deployment of advanced digital technologies. The mounting economic development through retail, mainly in Saudi Arabia and the UAE has made way for a higher count of large malls in the region for attracting international tourists. The increasing preference for UAE as a shopping hub has led to higher product penetration to offer improved and hassle-free experiences. The growing number of international tourists and the booming hospitality sector are other factors impacting the regional market growth.

Furthermore, the higher incorporation of digital payment techniques, including mobile wallets and smart cards to limit the requirement for handle cash-based financial transactions, will favor the demand for self-checkout kiosks. There are also improving economic conditions across Latin America and the Asia Pacific. The growing usage of smartphones for timesaving and helping customers scan the items and pay through apps will also anchor the market forecast.

supply chain

6 Emerging Challenges for the Supply Chain and How to Address Them

The past 18 months have exposed major weaknesses in the global supply chain. For many companies, the pressure from the COVID-19 pandemic stretched logistics to their limits, revealing inefficiencies and areas for improvement.

These existing weaknesses are being compounded by new supply chain challenges and changing market conditions. Here are six of the most important emerging challenges for global logistics — and what businesses can do to address them.

1. Lead Time Expectations

Consumers and business clients both expect increasingly quick turnaround times on new orders. In part due to the rise of ecommerce giants like Amazon, many consumers consider it normal for an item to be delivered a day or two after an order is received.

For the global supply chain, however, this is often unrealistic. International shipment can take weeks or months, depending on the complexity of the item ordered.

These consumer expectations aren’t likely to change any time soon. As a result, more effective demand forecasting and supply planning will be essential for businesses. Flexible supply chains that are capable of expediting orders as needed — for example, taking advantage of backup air freight contracts when land or sea would be too slow — will become an invaluable asset.

Strategies that keep goods close to buyers can also help businesses meet these expectations. Distributing warehouse space, if possible, can make it more likely that items are nearby buyers when ordered, making them quicker to ship.

2. Port Congestion

Port congestion, in part caused by the COVID-19 pandemic, remains a major challenge for logistics. Right now, ports around the world are experiencing record levels of congestion, meaning freight shipped by sea is likely to be delayed significantly.

Businesses are experimenting with different solutions to this problem. In the United States, some major retailers have begun chartering their own ships to import goods ahead of the 2021 holiday season. Chartering these ships allows the retailers to unload at less-congested docks, like those in Portland, Oregon.

Most businesses likely don’t have the resources to charter their own cargo ships. Instead, demand forecasting and carrier choice may help companies keep sea freight moving. Staggering shipment containers across multiple vessels may also help businesses avoid the worst of a port’s congestion while also mitigating risks in other ways.

The diversification of sourcing in a supply chain strategy can also help. If port congestion makes it nearly impossible to obtain a good or raw material from one supplier, there may be other suppliers available via air or land freight.

3. Aging Equipment

As they age, vehicles become less reliable and more prone to failure. Regular replacement of fleet vehicles is essential to keep the supply chain running smoothly, but the high expense of a new truck or tractor-trailer means businesses are continuing to use legacy equipment for longer than they would typically.

Vehicle failures can happen suddenly. Even simple issues can cause massive problems when a part that’s been on the verge of failure begins to break down.

Replacing old vehicles with new ones is one way to minimize downtime due to failures. An upgrade is also an opportunity to investigate alternative fuel vehicles and electric trucks.

For businesses that can’t afford the capital expense of a new fleet, knowledge and careful maintenance can keep vehicles running longer. Preventive maintenance and effective upkeep is the best way to extend the lifespan of a vehicle.

For example, the lifespan of tires that are underinflated by just 20% may decrease by as much as 30%. Proper tire inflation can keep vehicles on the road and decrease maintenance costs over time. Other common semi-truck issues, like brake failures, can also be avoided with the right maintenance practices.

Some businesses may also deal with niche-specific maintenance problems. For instance, transporting crops can put significant strain on the suspension of a vehicle or machine, especially its leaf springs.

Regular inspection and maintenance of these suspension components can help logistics companies avoid costly breakdowns and significant downtime.

4. Aging Infrastructure

A similar, related problem is emerging on the state side of logistics. Dated transportation infrastructure is beginning to show its age. In 2021, the American Society of Civil Engineers (ASCE) gave American infrastructure as a whole a C minus. Roadways fell behind even this low average and were given a D grade.

Bridge closures, roadwork, and infrastructure failures can all create serious difficulties for logistics companies. When essential routes are closed for emergency maintenance, companies may have few options for avoiding delays.

As with port congestion, diversification may be the answer for businesses. Distributing risk by partnering with a larger number of suppliers can help businesses create a more responsive and flexible supply chain network.

5. Digital Transformation and Cyber Vulnerability

Data has become one of the most valuable assets available to logistics companies. With the right customer information, a business can more accurately predict demand, anticipate crises, and mitigate risks.

This same information can also make a company much more vulnerable, however. The value of data stored on business networks makes these networks a more attractive target for hackers.

At the same time, digitalization, the adoption of Industry 4.0 technology and IoT devices, and the pivot to working from home have all increased the number of critical business assets exposed to the internet.

The consequences of a successful breach can be massive. Businesses that suffer a breach may pay multi-million-dollar ransoms, lose critical files, or face a badly damaged reputation. Downtime and fines from government regulators can further increase the cost of a breach.

Effective cybersecurity is the best way to reduce the risk of a breach. Investing in IT, developing best practices, and participating in industry conversations on cybersecurity will help businesses ensure that critical assets and digital infrastructure are kept safe from hackers.

6. Rising Freight Prices

Higher shipping costs are likely here to stay. For logistics providers and vendors, this can be a serious challenge. Already, experts are predicting that businesses will hike prices to offset the growing freight costs. The impact will likely be felt in almost every sector of the economy.

Better technology may help businesses adapt to these higher prices. Transportation management utilities that allow businesses to compare carriers and optimize routes, for example, can help them to both navigate around delays and minimize freight costs.

How Businesses Can Adapt to a Changing Supply Chain

The global supply chain is transforming fast. Businesses that want to develop effective logistics strategies will need to manage both old and new supply chain challenges.

Technology and diversification may both be essential. Partnering with a range of suppliers can help businesses distribute risk and avoid emerging issues like port congestion. New technology can make it easier to optimize routes and identify the most valuable carriers.

sausage

German Sausage Exports Grow Tangibly

IndexBox has just published a new report: ‘Germany – Sausages And Similar Products Of Meat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, German exports of sausages and similar meat products jumped by +7.8% y-o-y to $855M. The UK, France and Denmark constitute the largest importers of sausages from Germany, with a combined 51% share of total exports. Exports to these three countries rose in value terms due to increased prices for German sausages. The average export price for sausages from Germany grew by +14% y-o-y to $5,435 per tonne in 2020.

German Sausage Exports by Country

In 2020, German exports of sausages and similar meat products expanded by +7.8% y-o-y to $855M (IndexBox estimates). In physical terms, approx. 157K tonnes were exported from Germany, which is down by -5.4% against 2019 figures.

The UK (43K tonnes), France (25K tonnes) and Denmark (12K tonnes) were the main destinations of sausage exports from Germany, with a combined 51% share of total exports. These countries were followed by the Netherlands, Belgium, Spain, Austria, Sweden, the Czech Republic, Romania, Bulgaria, Italy and Hungary, which accounted for a further 36%.

In value terms, the UK ($230M) remains the key foreign market for sausage exports from Germany, comprising 27% of total exports. The second position in the ranking was occupied by France ($114M), with a 13% share of total exports. It was followed by the Netherlands, with a 9.3% share.

In 2020, the average annual growth rate in terms of value to the UK stood at +19.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: France (+8.2% per year) and the Netherlands (+5.3% per year).

The average sausage export price stood at $5,435 per tonne in 2020, picking up by +14% 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 the Netherlands ($7,763 per tonne), while the average price for exports to Bulgaria ($2,426 per tonne) was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Belgium, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

alloy

Heat-Resistant Nickel Alloy to Witness Soaring Demand from Onshore Power Plants over 2021-2027

Nickel alloy has always been an important material for various industries, including some high-revenue sectors such as automotive, aerospace & defense, owing to its high solubility with iron, chromium, and other vital metals. The high versatility of the material, along with its exceptional heat and corrosion resistance properties enables its application in aircraft gas turbines, steam turbines in power plants, and other high-performance applications.

In onshore wind power plants, nickel-based alloys are primarily used in the gearing and generator components. On the other hand, in hydroelectric installations, nickel alloys are used in turbines owing to their exceptional erosion and corrosion resistance features.


A growing world government emphasis on scaling up power plant infrastructures, coupled with the soaring number of onshore power projects sanctioned to cater to the rapidly rising electricity demand, would foster the demand for nickel alloy to a large extent.

According to Global Market Insights, Inc., report, the global nickel alloy market size is expected to witness remunerative growth by 2027.

Nickel-based alloys and metals have wide-ranging applications in the automotive sector. Apart from its utilization in many automotive parts, nickel is extensively used in the batteries of electric vehicles. Nickel-manganese-cobalt (NMC) lithium-ion battery is witnessing significant adoption in EVs due to its extended power backup.

The rise in electric vehicle production globally is likely to drive the demand for nickel alloy in the coming years. As per the International Environment Agency, approximately 2.1 million electric vehicles were sold in 2019. Moreover, nickel and chromium plating are also used on numerous automotive components to enhance vehicles aesthetics.

The heat-resistant nickel alloy segment is forecast to hold considerable market share by the end of 2027, particularly owing to increasing demand in high-temperature applications. These applications include oil & gas production, and power plants, among others. There have been rising government initiatives to develop a large number of onshore and offshore power plants and oil & gas refineries mostly in developed nations.

From a regional frame of reference, the European nickel alloy industry share is anticipated to expand exponentially owing to the rising number of passenger jet fleets. As per the CAPA Fleet Database, the passenger jet fleet in Europe rose by 1.8% month-on-month in February 2021, to 3,400. The applications of nickel in aircraft engine turbines bring toughness, high-temperature strength, and durability.

Meanwhile, stringent environmental norms encouraging the adoption of electric vehicles and the establishment of renewable-energy power plants would positively influence nickel alloy business in Europe.

Leading companies involved in global nickel alloy business include Ametek Inc., Sandvik AB, Rolled Alloys, Inc., Aperam S.A., Voestalpine AG, Allegheny Technologies Incorporated, Haynes International, Precision Castparts Corporation (Berkshire Hathaway), and ThyssenKrupp AG, among others. These industry players are focusing on strategic alliances and novel product development to strengthen their position in the global market.

Nickel alloy plays a vital role in the transportation sector, right from its utilization in EVs, aircraft, and traditional automotive. Nickel-based stainless steel is used in passenger trains and subways to offer strongness and durability to the outer body. Superior mechanical properties, along with the ability to dilute with other materials expected to foster applications of nickel and nickel-based materials in the forthcoming years.

compliance

AN OVERVIEW ON COMPLIANCE IN OPERATIONS AND MANAGEMENT

Shippers across the globe are sure to be confronted with new disruptions when navigating international markets–regardless of the shipping method put into place. Gone are the days when minimal compliance efforts are overlooked or passed off as acceptable. In the modern trade arena, compliance and accuracy are everything.

Tack on the pandemic, an ongoing trade war and what seems like a constantly shifting trade landscape, and compliance efforts can seem downright daunting and costly–especially to and from the U.S., according to Ben Bidwell, director of North America Customs and Compliance at C.H. Robinson.

“Former U.S. Deputy Attorney General Paul McNulty once said, ‘If you think compliance is expensive, you should try non-compliance.’ When shippers make mistakes, it can become costly and not just in terms of freight delays, but it can lead to seizure of goods and even jail time for those who are involved,” explains Bidwell. 


The C.H. Robinson executive shares that not only do shippers have to be more careful now than ever when trading across borders, but simply understanding the evergreen trade landscape and various barriers is a critical part of successful operations.

“Challenges in today’s trade market include Section 301, punitive tariffs, forced labor concerns and more,” Bidwell says. “But shippers cannot afford to forget about basics such as the U.S. Customs List of Trade Priority Issues, for example. Customs has certainly not lost sight of that list, and the importing community can’t afford to lose sight of it either.”

Different challenges require unique, strategic approaches in management. The constant shifting of these challenges depends primarily on the country in question, the products being shipped and local customs regulations. This is where automation, advanced technology and access to critical information can serve as significant game-changers for your customers and operations.

Trade & Tariffs Insights, a page on the C.H. Robinson website, “brings the latest challenges, changes and more wrapped together for importers and exporters to utilize and understand,” Bidwell says. “This resource helps shippers get the information they need–not only to remain compliant but to also keep them updated on the latest changes and potential changes that could impact their business.”

Staying informed with rock solid information is becoming ever more important, Bidwell notes.

“Visibility, access to your data and data analytics are critical in running a compliant and successful supply chain,” he says. “It equals not only results in compliance, but also duty savings, duty mitigation opportunities and overall awareness.”

C.H. Robinson’s Navisphere platform does exactly that. The data analysis tools (Carrier, Insight and Vision) capture key elements in the importing and exporting process while providing a clear path of data-backed insights and next-step actions. Navisphere leaves the guessing out of the process and enables customers to make informed decisions and cost analysis. Additionally, the different Navisphere tools serve as an extension in predictive data allowing shippers to proactively plan their next move.

“Shippers can go in and see where they are paying the most in duties and taxes by country, by specific commodity, by shipper, etc.; they can see all of that data side-by-side,” Bidwell says. “This feature gives them the opportunity to make informed decisions and assist with weighing, should we look at alternative sourcing options, for example.”

Another trending issue within the importing and exporting landscape is forced labor compliance. Bidwell shares that the penalties for such compliance issues–regardless of whether the importer is aware—are costly and can lead to the ultimate seizure or destruction of the goods in addition to severe civil penalties.

“Anytime you are shipping across borders, it is important to have a compliance program in place and that your company has individuals or a team dedicated to reviewing and maintaining that program,” he adds. “C.H. Robinson has worked with thousands of companies related to this. At the end of the day, our role is to act as an extension of their team, to not only get them up to speed on what they need to be doing from a compliance perspective, but in the long-term acting as a reliable partner to ensure their ongoing compliance.”

Shippers must keep in mind that customs has eyes on their shipments and implementing proactive rather than reactive measures will greatly benefit the business in the long-term. Bidwell advises that to ensure compliance measures are met and maintained, costs are inevitable. It really boils down to when these costs are enforced.

“Compliance is an investment. It may cost more on the front-end but skipping out on that investment could cost you tenfold in the long term. As far as other supporting elements with compliance efforts, I recommend going back to the data analytics and visibility of your own data, because that information can be telling, and it allows you to identify anomalies as they occur.”

Investing in a solid compliance strategy is not just for shippers, it is a critical piece to the entire process, throughout the whole supply chain. With the labor shortage being felt in almost every industry, the logistics sector cannot afford to skip out on the creation and adherence to acceptable compliance efforts. When employees are professionally trained and informed on upcoming changes within the market, your business benefits.

“It’s about getting back to basics and not losing sight of all of the baseline compliance that comes with importing and exporting,” Bidwell says. “It is easy to get lost with all the changes that are happening with trade policy and a very volatile market. Companies must ensure that they do not lose sight of traditional basic compliance, because that stuff hasn’t gone away, and customs certainly hasn’t stopped.”

C.H. Robinson provides solutions for their customers at the local level and across the globe. Ensuring all bases are covered through customs and compliance experts enables the customer to rely on these resource experts to advise on how to ensure their supply chain is compliant. 

To learn more about C.H. Robinson’s Navisphere technology platform or other offerings, please visit chrobinson.com/en-us/technology/navisphere/.

__________________________________________________________

Ben Bidwell is the director of North America customs and compliance at C.H. Robinson. Ben joined C.H. Robinson in 2004 and became a Licensed Customs House Broker in 2007. Throughout his career at C.H. Robinson, he has consulted and resolved a wide range of customs disputes for clients involving classification, country of origin, marking violations, seizures and protests for products ranging from hospitality goods, automobile tires, apparel and textiles, toys and other consumer retail goods.

meat

American Canned Meat Imports Rise Steadily

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

Over the past decade, American imports of canned meat increased twofold, from $447M in 2010 to $1B in 2020. In physical terms, the U.S. canned meat imports rose by +4.5% y-o-y to 152K tonnes last year. Canada, Brazil and Poland constitute the largest suppliers of canned meat to the U.S., providing 72% of the American import volume. In 2020, Denmark emerged as the fastest-growing exporter of canned meat to the U.S. Last year, the average canned meat import price amounted to $6,669 per tonne, decreasing by -2.8% compared to the figures of 2019. 

American Canned Meat Imports

Over the period from 2010 to 2020, American imports increased twofold, from $447M to $1B. In 2020, imports of canned meat into the U.S. expanded slightly to 152K tonnes, with an increase of +4.5% compared with the year before. In value terms, canned meat imports grew by +1.6% y-o-y to $1B (IndexBox estimates) in 2020.

Canada (61K tonnes), Brazil (40K tonnes) and Poland (9.5K tonnes) were the main suppliers of canned meat imports to the U.S., together comprising 72% of total imports. These countries were followed by Chile, Mexico, Denmark and Uruguay, which together accounted for a further 21%.

In value terms, Canada ($392M), Brazil ($323M) and Poland ($46M) constituted the largest canned meat suppliers to the U.S., with a combined 75% share of total imports. Uruguay, Mexico, Denmark and Chile lagged somewhat behind, together comprising a further 15%.

Among the main suppliers, Denmark (+59.0% per year) recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

In 2020, the average canned meat import price amounted to $6,669 per tonne, dropping by -2.8% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Brazil ($8,085 per tonne), while the price for Chile ($3,375 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Denmark, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

technology

TECHNOLOGY LEADS TO MEET MODERN CHALLENGES: PART III

For part three of our tech-focused featureGlobal Trade identified industry players who confronted challenges with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, including ocean carriers, ports, trucking, and warehousing. Read part one here and part two here.

OCEAN CARRIERS

Company: Atlantic Container Lines of Westfield, New Jersey

Challenge: Enhancing operations and market share for refrigerated shipments

Problem Solver: Carrier Transicold of Palm Beach Gardens, Florida

Solution: PrimeLINE refrigeration units

In an attempt to gain new operational advantages and efficiencies for its refrigerated shipping operations, Atlantic Container Line (ACL) began acquiring 150 new containers equipped with Carrier Transicold PrimeLINE refrigeration units in May. The cube-shaped, 40-foot-high containers, which help preserve and protect food, medicine and vaccine supplies, have been put into service on trade routes between the U.S. and western Europe.

“With its energy-efficient performance, the PrimeLINE refrigeration unit is a perfect complement for our fleet, which includes some of the world’s largest, most fuel-efficient and environmentally responsible roll-on/roll-off containerships,” says Maurizio Di Paolo, Corporate Liner Equipment Department manager, with the Naples, Italy-based Grimaldi Group that includes ACL in its portfolio.

Carrier’s Lynx Fleet digital platform monitors the cold-chain containers, although Di Paolo says that “is only the beginning” when it comes to providing benefits to the shipping line. “We are especially looking forward to the advantages that come with refrigeration unit health analytics and the subsequent efficiencies for our maintenance and repair operations,” he said at the containers’ roll out.

Lynx Fleet includes integrated telematics and a cloud-based architecture to ensure information is always up to date; a data management platform that provides enhanced visibility on the health and status of a fleet’s refrigerated containers, reducing operational costs and maintenance & repair expenses related to conducting new off-line pre-trip inspections; as well as platform accessibility from anywhere via smartphone, tablet or computer, through an interactive user-friendly, digital dashboard. The ACL units will also utilize Carrier’s Micro-Link 5 controller, the first and only one in the industry with wireless communication capability, providing greater memory, processing power and connectivity compared to standard controllers.

“We are pleased to support ACL’s modern fleet with our latest container refrigeration technology, which is designed to improve fleet efficiencies and help control operating costs,” says Kay Henze, Carrier’s account manager.

The deal with ACL was sealed a month after Carrier announced that SeaCube Containers LLC of Woodcliff Lake, New Jersey, became the first intermodal equipment leasing company to incorporate Lynx Fleet into its fleet, with an initial deployment of 2,000 PrimeLINE units. 

“This is an exciting step forward for SeaCube as we move toward realizing our vision of telematics as a standard within our reefer fleet,” SeaCube CEO Bob Sappio mentioned at the time. “We are confident that the Lynx Fleet offerings will help drive improvements in our own operating metrics and resonate with our customers to help them achieve optimal reefer performance and act on data-driven insights.” 

PORTS

Entity: Port of Los Angeles, California

Challenge: Advancing the port’s ambitious Clean Air Action Plan  

Problem Solvers: Toyota Motor North America of Plano, Texas; Kenworth Truck Co. of Kirkland, Washington; Shell Oil Products US of Houston, Texas, and multiple stakeholders 

Solution: Hydrogen fuel cell electric freight vehicles and stations

North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020 and remained open with all terminals operational throughout the COVID-19 pandemic. The port currently has 18 projects under way aimed at achieving clear air, clean water and sustainability.

Under an $82.5 million Shore-to-Store project, the port has teamed up with Shell, Toyota, Kenworth Truck Co. and several other public and private-sector partners for a 12-month demonstration of zero-emissions Class 8 trucks. The project—which rolls into a larger-scale, multiyear demonstration that is designed to advance the port’s Clean Air Action Plan goals—is designed to assess the operational and technical feasibility of the vehicles in a heavy-duty setting.

Kenworth designed and built the trucks that rely on a fuel cell electric system designed and built by Toyota. Of course, these vehicles need places to refuel, so Shell designed, built and will operate two new high-capacity hydrogen fueling stations in Wilmington, which is 7 miles from the port, and Ontario, which is 60 miles inland. The vehicles’ duty cycles will consist of local pickup and delivery and drayage near the port and short regional haul applications in the Inland Empire. 

“Transporting goods between our port and the Inland Empire is the first leg of this next journey toward a zero-emissions future,” said Port of L.A. Executive Director Gene Seroka during a demonstration in June. “This project is a model for developing and commercializing the next generation of clean trucks and cargo-handling equipment for the region and beyond. Just as the air we breathe extends beyond the port’s footprint, so should the clean air and economic benefits we believe this project will yield.”

Further expansion of the project will include five more hydrogen-fueled heavy-duty trucks, two battery-electric yard tractors and two battery-electric forklifts, whose feasibility under the rigorous demands of the Southern California market will be studied by the partnershipThey will also measure the reduction of nitrogen oxide, particulate matter, greenhouse gas emissions and other pollutants.

“Shell believes hydrogen offers a promising solution to achieving net-zero emissions both in terms of immediate improvements of local air quality as well as meeting long-term climate goals, especially for heavy-duty vehicles and for long-distance travel,” says Paul Bogers, Shell’s vice president, Hydrogen. “That’s why we are working with truck manufacturers, fleets, governments and others to coordinate hydrogen infrastructure investments in high-traffic freight areas like the Port of Los Angeles, Port of Long Beach, the Los Angeles basin and the Inland Empire.”

TRUCKING

Company: Paramount Transportation Logistics Services of Fort Myers, Florida

Challenge: Accelerate their digital freight management initiative

Problem Solver: Trucker Tools of Reston, Virginia

Solution: Smart Capacity real-time load tracking technology

Paramount Transportation Logistics Services (PTLS), which is part of the R+L Global Logistics family of companies, provides comprehensive logistics and transportation management services, including warehousing, distribution, asset-based truckload and LTL services in North America as well as freight forwarding globally. Having embarked on a strategic technology initiative to enhance broker efficiency, improve carrier engagement and expand the provision of real-time shipment information for customers, Paramount performed a detailed examination of companies to consider as a platform partner. Trucker Tools won the pony.

“Trucker Tools checks three principal capability boxes for us,” explains Mark Funk, Paramount’s director of Capacity Procurement. “The first is automated, real-time, GPS-based location tracking, which gives us reliable shipment updates every 15 minutes. Second is predictive freight matching, which automates finding available trucks, and makes it easier for truckers to book with us. By digitizing this process, we also cut the time and cost to cover a load by over 50 percent, increasing the number of loads our team can secure.” 

Trucker Tools’ multi-functional, multi-party mobile driver app and its wide adoption among the truckload community also factored into Paramount’s decision, Funk added. “Carriers are our customers, too,” he noted. “Importantly, we can leverage a common mobile app, familiar to thousands of independent truckload operators and small fleets, to access a much deeper pool of capacity and improve how we do business with them.”  

The Trucker Tools mobile app, which is available for both Android- and Apple-powered smartphones, is provided free of charge to independent truckers and small fleets with 10 or fewer vehicles, which together account for 90 percent of truckload market carriers, according to the company.

“We are excited to welcome Paramount to our growing community of over 300 brokers and 3PLs adopting Trucker Tools as their strategic partner for digital freight management,” says Prasad Gollapalli, founder and chief executive of Trucker Tools. “We truly see ourselves as an integral partner in our customers’ continuous journey to leverage emerging technology, improve how they engage with carriers and provide ever more sophisticated and valuable services to their customers.”

WAREHOUSING

Company: GEODIS of Levallois-Perret, France

Challenge: Improving job safety, comfort and the pool of potential warehouse workers  

Problem Solver: Phantom Auto of Mountain View, California 

Solution: Remotely operated forklift

It takes a lot of thinking to be a multi-dimensional supply chain operations with a direct presence in 67 countries, a global network spanning 120 countries and business rankings of No. 1 in France,  No. 6 in Europe and No. 7 worldwide. And so, it was a thinker at GEODIS who came up the idea of operating warehouse forklifts remotely.

Think about it, the thinker, who is a GEODIS manager, thought: Such an operation would: (1) reduce injuries and increase overall safety in warehouses; (2) lower the number of people physically inside warehouses to enhance worker comfort; (3) create new future-proof remote operator jobs that can be carried out within an office environment; (4) allow the hiring of individuals who may have physical disabilities restricting their use of traditional forklifts, as well as individuals from other historically underrepresented demographics; and (5) allow for recruitment from regions outside of where warehouses are located, including areas of higher unemployment.

Call that a win-win—with a win-win-win on top!

To make this happen, the GEODIS thinker took his idea to a GEODIS think tank that concluded . . . We need help. La première étape (“step one;” finally, my seventh-grade French class pays off) was to find a worthy forklift maker. Deuxième étape (step two; oui-oui!) was to locate the technological know-how to make the contraption work remotely.

For the forklift, GEODIS did not have to look far. Germany’s Linde Material Handling GmbH, a KION Group company that manufactures forklift trucks and warehouse trucks globally, has a French subsidiary called Fenwick-Linde. But for the tech, GEODIS had to look west—waaaaaay west to the U.S. West Coast, where one finds Silicon Valley and Phantom Auto.

The Fenwick forklift combined with Phantom’s secure, network-agnostic and interoperable remote operation software now enables remote workers to “drive” the vehicle, unlocking efficiency and equipment utilization gains. For example, one remote worker can operate multiple forklifts at a number of warehouses at different times of the day, all from one secure, central location. Keep in mind that giant GEODIS has warehouses all over the world.

“Phantom Auto’s technology enables dynamic balancing of workforce allocation, safer warehouses, enhanced worker well-being, and employment opportunities to those who otherwise could not physically drive forklifts,” says Stéphanie Hervé, GEODIS’ chief operating officer, Western Europe, Middle East & Africa. “This innovation will be of benefit to the wider community and indicates the future of logistics operations. We believe that technology should serve people, and that is what this partnership with Phantom Auto illustrates.”

We began this story with market research, so let us conclude with StartUs Insights’ recent report that was based on an analysis of nearly 800 startup businesses and identified a number of Industry 4.0 technological trends. The top 10 are:

artificial intelligence, 16 percent; human augmentation and enhanced reality, 13 percent; edge, fog and cloud computing, 11 percent; network and connectivity, 11 percent; advanced robotics, 10 percent; Internet of Everything, 10 percent; big data and analytics, 9 percent; 3D printing, 8 percent; security, transparency and privacy, 7 percent; and digital twin, 5 percent.

Considering that report for The International Air Cargo Association, TIACA Director General Glyn Hughes noted that each trend StartUs Insights identified affects his members. While an email he recently sent to members is strictly tailored to his industry, his words actually apply to all the companies and problem-solvers cited in this article and beyond.  

“We have all moved on and technology has been leading the way forward and will continue to do so,” Hughes writes. “Future success will be determined by those who identify, embrace and capitalize on new opportunities.

“In that regard, the air cargo industry will also need to embrace these new opportunities. Many of these are already heavily influencing air cargo operational efficiency and a number of new solutions and industry best practices have resulted. When it comes to innovation, digitalization and technological implementation . . . it is very true to say that standing still is actually moving backwards.”

PVC

Chinese Exports of PVC Coverings Jump to $5.7B with Booming Demand from the U.S.

IndexBox has just published a new report: ‘China – Floor, Wall Or Ceiling Coverings Of Plastics – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Chinese exports of PVC floor, wall and ceiling coverings spiked by +14.0% y-o-y to $5.7B, reaching the highest level over the past decade. From 2010 to 2020, exports of PVC coverings from China rose from 720M square meters to 5B square meters. China leads in global PVC coverings exports with a 75%-share of the total volume. The U.S. remains the key foreign market for  PVC covering exports from China, accounting for 59% of the exports. Canada and Germany follow the U.S. in this ranking. In 2020, the average export price for Chinese PVC coverings amounted to $1.1 per square meter, falling by -6.4% y-o-y. 

Chinese PVC Coverings Exports

In 2020, exports of PVC floor, wall and ceiling coverings from China soared to 5B square meters, picking up by +22% compared with 2019 figures. In value terms, exports of PVC floor, wall and ceiling coverings expanded by +14.0% y-o-y to $5.7B (IndexBox estimates) in 2020.

In physical terms, Chinese exports of PVC coverings rose from 720M square meters to 5B square meters over the past decade. China is the largest exporter of PVC coverings with a 75%-share of global exports.

The U.S. (2.9B square meters) was the main destination for exports of PVC floor, wall and ceiling coverings from China, accounting for a 59% share of total exports. Moreover, exports of PVC floor, wall and ceiling coverings to the U.S. exceeded the volume sent to the second major destination, Canada (328M square meters), eightfold. The third position in this ranking was occupied by Germany (178M square meters), with a 3.6% share.

In value terms, the U.S. ($3.2B) remains the key foreign market for PVC floor, wall and ceiling coverings exports from China, comprising 56% of total exports. The second position in the ranking was occupied by Canada ($339M), with a 6% share of total exports. It was followed by Germany, with a 3.4% share.

In 2020, the average annual rate of growth in terms of value to the U.S. amounted to +17.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (+24.5% per year) and Germany (-3.0% per year).

In 2020, the average export price for PVC floor, wall and ceiling coverings amounted to $1.1 per square meter, with a decrease of -6.4% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the countries with the highest prices were the UK ($1.2 per square meter) and Belgium ($1.2 per square meter), while the average price for exports to Canada ($1 per square meter) and the U.S. ($1.1 per square meter) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Germany, while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform