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Breakbulk Americas 2020 Will Take Place November 3-5, 2020

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Archives, Executive Education, Global Trade Daily

Breakbulk Americas 2020 Will Take Place November 3-5, 2020

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Breakbulk Americas has been rescheduled for November 3-5, 2020 at the George R. Brown Convention Center in Houston. The new dates are due to the move of Breakbulk Europe from its time slot in late May to the end of September. 

“We needed to move these two events as a result of the COVID-19 pandemic, an unprecedented crisis that has affected everyone,” Nick Davison, Portfolio Director for Breakbulk and CWEIME events, Hyve Group said. “Breakbulk Americas was the last piece of the puzzle to fall into place so we could deliver a full suite of Breakbulk events this year. “

“Our aim was to minimize disruption and make it as easy as possible for our customers to participate in both Breakbulk Europe and Breakbulk Americas under safe conditions.” 

Breakbulk Americas will now be held in Halls A and B at the north end of the GRB Convention Center. Revised hotel accommodations for the new dates will be released shortly. 

“Our team is grateful for the assistance from Visit Houston in helping us to find a solution,” Jamie Reesby, Event Director for Breakbulk Americas said. “It’s an inspiring example of our community collaborating in the throes of a crisis to keep this event, a mainstay of the project cargo and breakbulk industry, on track. I’m looking forward to seeing the industry come together as we enter the fourth decade of Breakbulk Americas.” 

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About Breakbulk Americas 

Breakbulk Americas has been the established hub for the project cargo and breakbulk industry for more than 30 years. Based in Houston, it hosts more than 5,000 professionals from across the industrial supply chain based primarily in Canada, U.S. and Latin America, including the America’s largest EPCs and oil & gas companies. For more information, visit americas.breakbulk.com 

Breakbulk Americas is one of four Breakbulk global events, along with Breakbulk Asia in Shanghai, 3-4 Aug. 2020, Breakbulk Europe in Bremen, 29 Sept.-1 Oct. 2020 and Breakbulk Middle East in Dubai, 9- 10 Feb. 2021. 

About Hyve Group plc 

Hyve Group plc is a next-generation FTSE 250 global events business whose purpose is to create unmissable events, where customers from all corners of the globe share extraordinary moments and shape industry innovation. Hyve Group plc was announced as the new brand name of ITE Group plc in September 2019, following its significant transformation under the Transformation and Growth (TAG) program. Our vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. 

Press contact: Leslie Meredith, Marketing & Media Director –Breakbulk Events & Media E: Leslie.Meredith@breakbulk.com 

T: +1 801 201 5971

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Archives, Global Logistics, Global Trade Daily

Doing Business Under COVID-19: Going Online to Weather the Storm

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Doing Business Under COVID-19: Going Online to Weather the Storm

At the time of this writing, there are now unprecedented restrictions being put in place to prevent the spread of the 2019 novel coronavirus or COVID-19, its official designation by the World Health Organization. These actions have been proposed as necessary steps in order to prevent the spread and transmission of the disease. However, its impact on the socio-political and economic fronts cannot be overlooked.

Such is the nature of this virus and the ensuing government actions that this will likely forever change how we do business not only in our individual nations but across the globe as a whole.

The technological revolution has already progressed sufficiently to allow for automation in a great many industries, but how can small and medium-sized businesses prepare before the next global pandemic?

Even in times of crisis, businesses still need to maintain communications with global partners, clients, and stakeholders. Get in touch with Tomedes’ crisis communication center. 

The Social Impact of COVID-19

Somewhere, some kid woke up in their dream utopian world, where they were forced to stay at home, playing video games in the basement, not having any physical contact with the outside world, or at least no more than necessary to order a pizza. Elsewhere, entire societies have been adversely impacted as restaurants, entertainment venues and other gatherings have been declared off-limits to the people.

Gatherings as seemingly innocuous as church meetings have been canceled, leaving many people suffering from the onset of cabin fever as they find themselves more and more isolated and incapable of participating in virtually any social engagement. This particularly impacts societies that value physical displays of affection between family members, friends, and acquaintances, along with the need to sustain relationships and friendships in a traditional hands-on manner.

The Economic Impact of COVID-19

Source: The Economist

Perhaps the most damaging disruption is that the COVID-19 is bringing the world economy to its knees, bankrupting many businesses for all sizes, and laying off employees by the droves, depriving them the ability to provide for themselves and for their families. With families still experiencing the shocks and crunches of the 2008 Financial Crisis and the Great Recession, along with the economic setbacks from the US-China trade war, the coronavirus pandemic couldn’t come at a worst time–not that it should have come at all. The pandemic is now having a rippling effect that expands throughout the global economic system as evidenced from the current global economic crisis.

Manufacturing of non-essential goods is now scaling back to even being suspended. Logistics and material supply chains are lagging behind which is then causing a domino effect, ultimately resulting in utter economic turmoil leaving entire sections of the economy beaten, battered and bruised with little hope for any immediate resolution.

Perhaps this outbreak will forever change the way that people work, shop and even how they live their lives. There are some industries that are currently thriving even during these economically depressed times. There are other businesses that are dying but some, with a little bit of effort and foresight, could be in a much better position during the next global outbreak.

Which Industries are Thriving During the Global COVID-19 Pandemic? And Why?

Source: World Health Organization

Despite the constant economic turmoil that is ongoing as a result of the current global pandemic, there are numerous industries that are thriving or at the very least, continuing operations. Many businesses that have already established themselves online in one form or another, are at the very least, not suffering as badly at present. Although, situations in some industries are mixed as some are forced to scale down their operations. Some are obligated to keep going considering the vital nature of their operations with profit being the least of their concerns as of the moment.

Tech Industry

As people continue their quarantine and lockdown lifestyle, they’ll naturally go online and browse all content they’ll come across to pass the time. Social media platforms are now experiencing a surge in content with people now having more time on their hands than usual. Streaming companies such as Netflix are also having a field day as ‘Netflix and chill’ routines are now the norm for more people for the next few weeks at least.

As for consumer electronic manufacturers, it’s fair to say that people’s consumer habits have changed from conspicuous spending to practical spending. There’s significantly less demand now for luxury products and consumer electronic products with the exception of consumer medical devices. It’s much more practical now to purchase a thermometer and digital blood pressure monitor than the latest iPhone or pre-ordering the upcoming PS5.

Ecommerce

The global ecommerce industry is facing mixed experiences as we speak. One can assume that as people stay indoors, ecommerce businesses are bound to have a field day. In reality, it entirely depends on your product inventory whether you sell essential goods, medical devices, or consumer electronics and so on. The impact on ecommerce businesses also depend on how much they rely on the global supply chain.

Since the pandemic has initially brought China’s manufacturers to a halt, everyone from ecommerce businesses to global retailers are taking a big hit. Some ecommerce businesses are forced to suspend their operations and even close up shop as they can’t restock their inventory. However, other ecommerce businesses are unable to cope with so much demand as people continue to stock up on essential goods.

Logistics

The global logistics industry is now the lifeblood holding the global economy together that’s currently hanging on by a thread. From supermarkets, relief operations, healthcare centers, to families, it’s imperative that logistics companies around the world keep running round the clock to deliver not only essential goods but also vital medical supplies of all kinds from testing kits, face masks (surgical, N95, etc.), to face shields, safety goggles, protective suits, and disinfectants.

However, there are some logistics companies that are on the losing end as many have been forced to scale down to even suspend their operations temporarily as the logistics workforce are highly susceptible to viral transmission.

Energy and Utilities

With families now staying, working, and continuing their schooling at home, energy and utility companies will naturally see a tremendous spike in operations. But whether this is profitable for their industry isn’t as black-and-white as one might think. Many energy and utility companies around the world are now extending bill payments to a month to cushion the financial toll families and businesses are currently experiencing. For energy and utility companies, perhaps profit isn’t their main concern now as they’re now working hard to keep their services uninterrupted and not putting lives at risk.

Medical Industry

The global medical industry is now in overdrive with some even classifying their operations as being elevated to ‘wartime’ level. However, we wouldn’t classify it as thriving per se in terms of opportunities and increased revenue. All health professionals and relevant frontliners are now overstretched around the world and facing dwindling medical supplies as cases rise.

It’s fair to say that the pandemic is putting even the most advanced healthcare systems under enormous pressure. The medical industry from healthcare providers, pharmaceutical companies, medical device manufacturers, and disinfectant manufacturers are now working round the clock to keep up with the pace of infections to keep it from spiraling out of the control.

Another part of the medical industry that’s seeing a spike in demand are unconventional medical services such as telemedicine and online mental health services. Doctors are highly vulnerable to viral transmission and must be protected at all costs. For patients with non-serious symptoms, telemedicine is the safest way to get a check-up from your doctor.

As for online mental health services, the abrupt social isolation along with some families even being mandated to isolate themselves from their own loved ones to prevent transmission within the household is having a damaging toll on people’s mental health.

The Language Industry

Business is booming for many aspects of the language industry, especially online translations. This is in large part due to the requirements of scientists, academics and medical professionals working around the world to stem the tide of the global COVID-19 pandemic. All of the research, the latest breakthroughs, and the research and analysis of these medical professionals must be quickly and accurately translated and then distributed to similar communities around the globe. Medical translation is also needed in the medical device industry as medical devices such as testing kits need to be accurately translated for it to be used properly by all countries affected by the pandemic.

Live interpreters are less in demand, though there are still exceptions, most notably in the medical, political, and public relations arena where communications must continue. Even here however, more and more of the work is being conducted via video conferencing and using other online means to prevent the need for gathering together unnecessarily. Translation agencies and even freelance translators and interpreters working online are experiencing an increased demand for their services when other industries falter.

The Freelance Industry

There were many claims made from both sides of the debate during the passage of AB5 in California, more commonly known as the “Gig Economy Bill”. Despite all of these claims however, freelancers online have experienced a record surge in terms of both the number of people looking for freelance work and the amount of work being moved to the “online economy”.

But not all freelancers can claim all is well unfortunately as the effects of the pandemic does naturally vary between industries. While many freelancers working online are enjoying a great boom in business, other freelancers providing on-site services such as consultants and even freelancers working for film and TV history, are having a rough time as we speak.

Setting Up Your Business Continuity Plan Amidst the Coronavirus Pandemic

Moving a business online is not only beneficial, but given the current economic and social crises, it may soon become inevitable, especially as the technological revolution automates industry and replaces more traditional jobs. There are additional benefits to the company as well.

The individuals working from home do not require expensive computers, desks or other equipment that the business owner would otherwise be forced to acquire. The business owner will not have to pay for all of the electrical consumption or other utilities that would otherwise be an added expense.

Even businesses that cannot be fully established online will benefit from an online presence. Localized service providers who only provide a limited service in an equally restrictive geographic location are one such example. Still, there are many aspects of the business that can be conducted online without any or at the very least, minimal disruption to the services being provided.

Moving Operations and Transactions Online

Accounts Payable and Receivable, IT services if there are any, and a host of other jobs can easily be completed through the use of professional agencies online, or by hiring employees who will be telecommuting, or working from their own homes. Some of the work may be outsourced to professional agencies and freelance workers online. But virtually all of it can be done without the need to congregate together in a closed, more restrictive environment.

Shift to Telecommuting

Companies that retain all or even a portion of their staff as telecommuters will be in a better position to weather the financial storm created by the current crises. This may perhaps be best demonstrated oddly enough, by looking at the internet and how it works. IT professionals are among the most common people in the industry working as telecommuters online. As long as there is internet, then there is work for people.

Likewise, programmers are able to work from home, as are customer service representatives and other key positions working in IT. Any company that can establish as much of its workforce as possible as telecommuters will enjoy numerous benefits that will be explained in the latter portion of this article.

Maintain a Skeletal Workforce for Operations if Possible.

As of writing, many businesses have had to make changes overnight from moving their operations online to even laying off a part of their workforce just to keep their business afloat. With the employees you have left, it’s important to also keep your business running by maintaining a skeletal workforce to focus on vital operations for the time being.

Using Voice Over Internet Protocol (VoIP) Services

Using VoIP services such as Skype and Facetime is a perfect way to continue face-to-face interactions not only with your employees but also clients. These are mostly free but do come with premium subscriptions if you want more access to its features as video group calls.

Expanding Your Ecommerce Capabilities

Some local businesses may already have an online presence, but may also need to consider expanding their services that are offered online. Any company that has a physical product that is going to be shipped out, or that offers online products, may want to consider the addition of an ecommerce or merchant page on their website.

This gives the business owner access to a much larger audience while at the same time, more fully automating much of the checkout process and reducing the number of employees required to perform the job functions.

Upgrade Your Content Marketing Strategies

Unlike printed ads or brochures, a website can also contain videos, which are a primary tool in every internet marketing campaign. This is especially true if the videos are used to introduce products to the customers, which is a very effective technique for increasing sales online.

Videos also have been shown to do better when they include closed captioning or video translations. Many people who are searching for products and services online will prefer the videos and watch them rather than read through large volumes of text.

The inclusion of video closed captioning through video translation services will allow for the customers to enjoy the full video experience without having to worry about missing anything, even when they have the sound turned off. Given the extent of the potential audience though, video translation and video marketing are excellent and necessary tools for an online marketing campaign as more people stay at home.

Relying on Customer Relationship Management (CRM) Platforms

You might have already been using CRM platforms but in these times, they couldn’t be more necessary now as your business continues operations online. CRM platforms make the process of monitoring clients and keeping track of relevant client data much easier. CRM platforms now run under cloud systems which means your employees can continue their services from the safety of their home.

Shift to Employee Management Strategies using Employee Tracking Tools

It’s fair to say that going online is a whole new realm, figuratively and literally. Business owners and managers need to be inundated with the latest online management strategies to keep track of their employees performance. One of the most vital essential tools in online employee management are employee tracking tools.

Employees can clock in and clock out per shift as they did before in which the tool will keep track of the total number of hours they’ve worked. Another useful feature in employee tracking tools is it takes screenshots of your employees’ screens. This helps managers know whether or not their employees are actually working on the tasks at hand rather than streaming Netflix.

Use Localization to Try to Get Ahead of the Curve

Let’s talk more about localization here and how you can get provided an elevated online customer experience for your foreign audiences and markets, especially during these trying times. Among the most popular online trends for business in 2020 is globalization through localization. Localization is all about speaking to the target demographic in their own language not just in a linguistic sense but also culturally and socially.

You’ll be using their preferences and norms as points of reference to help you refine your product and marketing strategies. This involves establishing a full business presence online in numerous different markets, using language and references that the people will understand from a more localized and personal perspective.

Localization indeed is more than just language, but translation itself under localization takes on a new form. Localizing translations involves taking note of regional linguistic nuances. Language differs greatly, even when everyone involved in the conversation speaks the same language. Think about the local vernacular, local phrases and local accents. Add in local frames of mind and points of reference, and even in different areas that speak the same language, different localization techniques will be required.

In many areas of the world, it will be necessary to use two or more local languages. The province of Quebec generally requires both French and English if it is to be effective. Locations around the Southern border of the USA may require both English and Spanish. Many locations throughout Europe commonly use numerous languages. Switzerland recognizes German, French and Italian as official languages, but also has a strong presence of Romansh. In such a case, four or more languages may be required to be translated for the website. In Switzerland, staying there for a moment in time, the areas for each language are generally geographically specific.

Each one of these geographic areas will have unique features and individual points of pride for the local populations. The ability to integrate these into a larger online campaign using localization strategies means that each one of these languages can be used to more specifically target the desired audience.

The best means to accomplish such a task is to ensure that when moving online, a translation agency that specializes in localization strategies is used in order to ensure both the accuracy and the individual aspects of a more complete, professional and personalized translation service. In some cases, these techniques will be crucial even for a more localized and restricted online business presence.

In other cases, they may be part of a broader globalization campaign, though using the same techniques of localization. However, there are places in the world that lack regular internet access. Some research may need to be done on who will be your ideal target audience.

Going Online Amidst Medical or even Economic Crises: Final Word

For those businesses that can go completely online, there will be no more need to worry about where people can or cannot gather, or what people can or cannot do in person. Many of these companies have the added benefit of creating  online products and services that can be delivered over the internet. Furthermore, the expansion of the online economy will keep the world economy going rather than flatlining.

The impact on ISPs and the relevant infrastructure have already pointed out the need for some expansion of the underlying infrastructure of the internet. It will create the need for more and better infrastructure to be built, resulting in even more work being made available online.

Overall, building a business online may seem like a rather small affair at first glance. However, just as is the case with the current social and economic crises the world is facing, the gains of an online business can create the very same rippling and domino effects in the opposite direction. The creation of more industry results in the creation of more jobs even in times of economic turmoil, and does more than just its “fair share” to aid in the global economic recovery.

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This article originally appeared on Tomedes.com. Republished with permission.

chlorine
Archives, Global Trade Daily, News

Global Chlorine Trade Totaled $160M

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

Global Chlorine Exports 2014-2018

In 2018, the global exports of chlorine totaled 547K tonnes, going down by -9.6% against the previous year. Overall, chlorine exports continue to indicate a slight setback. The most prominent rate of growth was recorded in 2016 with an increase of 5.7% against the previous year. The global exports peaked at 605K tonnes in 2017, and then declined slightly in the following year.

In value terms, chlorine exports stood at $160M (IndexBox estimates) in 2018.

Exports by Country

In 2018, Canada (157K tonnes), distantly followed by France (82K tonnes), the U.S. (51K tonnes) and Romania (32K tonnes) were the largest exporters of chlorine, together making up 59% of total exports. Mexico (24K tonnes), Germany (23K tonnes), Thailand (19K tonnes), Poland (19K tonnes), Japan (14K tonnes), South Korea (12K tonnes), Austria (11K tonnes) and Colombia (11K tonnes) followed a long way behind the leaders.

From 2014 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Japan, while exports for the other global leaders experienced more modest paces of growth.

In value terms, the largest chlorine supplying countries worldwide were Canada ($31M), the U.S. ($20M) and France ($14M), together accounting for 41% of global exports.

The U.S. recorded the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while exports for the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average chlorine export price amounted to $292 per tonne, growing by 12% against the previous year. Over the last four-year period, it increased at an average annual rate of +1.7%. Prices varied noticeably by the country of origin; the country with the highest price was Japan ($898 per tonne), while Romania ($102 per tonne) was amongst the lowest.

From 2014 to 2018, the most notable rate of growth in terms of prices was attained by Germany, while the other global leaders experienced more modest paces of growth.

Imports by Country

The U.S. represented the major importer of chlorine imported in the world, with the volume of imports reaching 189K tonnes, which was approx. 33% of total imports in 2018. Germany (63K tonnes) ranks second in terms of the total imports with a 11% share, followed by Mexico (7.5%), Hungary (5.6%) and Switzerland (4.6%). The following importers – Malaysia (16K tonnes), Taiwan, Chinese (13K tonnes), Belgium (11K tonnes), China (11K tonnes), the Philippines (10K tonnes), Italy (10K tonnes) and Portugal (9.3K tonnes) – together made up 14% of total imports.

From 2014 to 2018, average annual rates of growth with regard to chlorine imports into the U.S. stood at -3.3%. At the same time, Mexico (+83.9%), Malaysia (+59.4%), China (+35.3%), Taiwan, Chinese (+24.7%), Germany (+16.6%), Portugal (+16.2%) and the Philippines (+2.5%) displayed positive paces of growth. Moreover, Mexico emerged as the fastest-growing importer imported in the world, with a CAGR of +83.9% from 2014-2018. By contrast, Hungary (-7.1%), Belgium (-8.5%), Switzerland (-9.4%) and Italy (-12.2%) illustrated a downward trend over the same period. While the share of Mexico (+6.9 p.p.), Germany (+5.1 p.p.) and Malaysia (+2.4 p.p.) increased significantly in terms of the global imports from 2014-2018, the share of Hungary (-1.9 p.p.), Switzerland (-2.2 p.p.) and the U.S. (-4.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the U.S. ($37M) constitutes the largest market for imported chlorine worldwide, comprising 21% of global imports. The second position in the ranking was occupied by Germany ($13M), with a 7.4% share of global imports. It was followed by Mexico, with a 7.1% share.

From 2014 to 2018, the average annual rate of growth in terms of value in the U.S. stood at +1.3%. The remaining importing countries recorded the following average annual rates of imports growth: Germany (+13.5% per year) and Mexico (+57.2% per year).

Import Prices by Country

The average chlorine import price stood at $307 per tonne in 2018, growing by 4.3% against the previous year.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was China ($981 per tonne), while Hungary ($83 per tonne) was amongst the lowest.

From 2014 to 2018, the most notable rate of growth in terms of prices was attained by the Philippines, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, Warehousing

How Warehousing has Evolved Over the Years

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In the last ten to twenty years, warehouses have evolved massively. The industry has come a long way just in the last decade and has evolved to adapt to a faster pace. Driven by the evolution of various factors that influence the global market, warehousing continues to rise and change to remain one of the vital components in many industries.

The rule in business nowadays is simple: either you adapt or you break. The warehousing sector can confidently say that it has successfully adapted to the trends set by consumers and competition. From retail to manufacturing, every business that involves logistics has managed to or has to manage by making planned changes through the use of recent developments, which has so far produced positive results.

As warehousing experts and pros continue to tread the path driven by trends and change, they have to educate themselves. An important part of the adaptation process and preparing to move forward is looking back at what put you in your current position – a review of sorts.

To help you see the direction warehouse management is headed, this article will highlight how warehousing has evolved over the years.

More Strategic and Complex

Warehousing management has become more strategic and complex over the years. The simple warehouse which was once a small portion of the supply chain is not what it used to be. The primary concept of which warehouses were derived is still there: storage; however, the warehouse is now being called on to handle more complexity than it ever had.

There are many different types of warehouses that exist now that could play an important role in the near future. Warehouses such as high ceiling facilities and pop-up warehouses were developed throughout time to meet different requirements. Still focusing on adapting, it’s critical that current warehouses are agile and can adapt to changing conditions.

Accessibility

Historically, warehouses were only available to large businesses with a large-scale budget. Now, warehouses are more accessible even to small and medium businesses. This is driven by everyone wanting to manage their own operations and taking matters into their own hands.

The demand for industrial real estate has risen and continues to do so since the boom of ecommerce and the customer’s expectations of faster and more affordable shipping. For instance, there is accessible industrial real estate in many locations such as the warehouse in Kansas City that a business can either lease or purchase for different purposes. This all caters to businesses of all sizes.

Shift to Ecommerce Drives Automation

As aforementioned, the ecommerce industry is one of the main driving forces of the warehousing evolution. Ecommerce pros are facing the challenge of meeting customer expectations of cheaper and faster delivery and shipping. One of the strategies to address this demand is to automate.

Automated systems effectively reduce overstock and shortages and will boost profits in the long run. Automation cannot do it alone though, as it has to be partnered with quality warehouse storage systems to help an operation run smoothly.

Conclusion

Warehousing evolved in the past years by becoming more strategic and complex, accessible, and pushing for automation. It will continue to evolve in the next decade or so, as it depends on variables that can disrupt the majority of workplaces in many industries. Warehousing will continue to be pushed to adapt by the ever-changing fast-paced world.

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Angelo Castelda works as a contributor for a news magazine in Asia. On his free days, he likes to read books about the logistics industry and warehouse management. He also gets frequently invited to schools and universities to hold talks about the supply chain system and warehouse operations.

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Archives, Global Trade Daily, Special Reports, Warehousing

WFH? Here’s How to Manage your Ecommerce Order Deliveries Successfully.

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The outbreak of the novel coronavirus has turned the whole world upside down. No one is sure about anything anymore. And that scares us. Luckily, the culture of remote working has been catching on. There are a gazillion tools that help you get rid of the snags of WFH. Regardless, managing your team as an ecommerce business owner remotely is no joke. Especially during a time when you cannot afford to lose business or customers.

Here’s a cheat sheet to stay on top of your orders in the age of social distancing.

1. Real-time shipment monitoring: The good news is that there is a greater push for shopping online. More and more customers are seeking comfort in the ease of ordering products online. In the US, there has been a surge in the ecommerce order volume for health and beauty products. The real challenge is staying on top of order fulfillment. You need a unified portal that tracks and monitors your packages in real-time. While your logistics team may be efficient, it is prudent to have visibility into shipment details. A real-time shipment tracking system that feeds you with the total shipments, total deliveries, potential delivery exceptions for every single day at all times. A real-time tracker is a great way to oversee your team’s order fulfillment efficiency with zero manual intervention.

2. Real-time Delivery updates: Your customers are anxious about their orders. More than ever before. If you see a sharp rise in the “ Where is my order” calls to customer support, rest assured, it is the new normal. Instead of overburdening your lean support team, send delivery updates to your customer proactively. Inform your customers of the order location. Auto-set triggers to initiate notification for any change in the shipment transit activity. Your customer stays in the know of the order shipment status at all times.

3. Custom exception notifications: Delivery exceptions are a downer. Lost, delays, damages can ruin your customer’s delivery experience. When left unattended, a bad delivery experience could quickly spiral out of control. To salvage this situation, act immediately. Whenever your real-time tracker notifies you of a potential disaster, come clean and inform your customer.

“Hey Mike. We regret to inform you that your order [ tracking# 887676756454] is experiencing a delay. But we assure you that we are working with our shipping partner to get the order to you at the earliest. Thanks”

Surprisingly, buyers are quite understanding and more cooperative once they are informed of any issue beforehand. In fact, your customers appreciate your transparency.

4. Carrier performance monitoring: When your business is fulfilling orders using more than one shipping carrier, how do you evaluate them. Even global carriers such as FedEx, UPS or DHL have their share of strengths and weaknesses. How do you play to the carrier’s strength so as to benefit the most? Easy. Measure their on-time delivery performances. Categorize their OTD across different zones, different days of the week and different package dimensions. Or simply plug into an Audit tool that can generate all this for you.

5. Cost-saving recommendations: Companies across the world are laying off employees. There is a huge drive for cost-cutting across organizations. Brick and Mortar stores are brainstorming ways to omnichannelise their user experience. The least you can do as an ecommerce business owner is to audit your shipping invoices. If you have not automated your auditing process yet, time to reconsider. An in-depth invoice audit not only results in instant savings on your shipping costs by disputing service and billing errors, but they also unearth strategies to optimize your shipping spend. The need of the hour is to shave away all the payment excesses and billing overcharges.

AuditShipment is an automated invoice audit service that identifies more than 50 carrier errors across vendors, disputes billing errors, validate tariff rate against SLA and offers benchmark discount reports. They also help get you refunds on late shipments from vendors like UPS, FedEx, etc. In addition to offering post-order fulfillment audits, our advanced technology also offers real-time shipment tracking and custom delivery notifications. With AuditShipment, stay on top of your orders at all times.

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Archives, Global Trade Daily, Ocean Ports

Container Availability: From Shortage to Congestion?

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Container ports all over the world, with the exception of China, are faced with imminent congestion when a multitude of boxes sent for shipment from factories in Asia arrive at their import destinations. As the infection rate of the COVID-19 in China declined and production resumed, a large number of containers that had piled up in China have finally sailed to Europe and North America. 

With Container Availability Index (CAx) values of 0.17 (20DCs) and 0.33 (40DCs), it seems like the Port of Shanghai is back at full productivity. In the past couple weeks, containers had piled up – CAx values of greater than 0.6 indicate a surplus of equipment – due to multitudinous blank sailings, something that would normally not happen often. Being able to forecast the development of the next 3 weeks, the CAx values for Shanghai will decrease from 0.41 for 20DCS in week 14, indicating that equipment will become more scarce again.

However, the effects of COVID-19 have dramatically affected consumer demand in the US and Europe. Buyers have begun to cancel orders as most of these countries are now in a severe lockdown situation and warehouse capacity is being maxed out. The incoming containers are most likely causing congestion, and incurring storage and demurrage charges at, for instance, the Port of Los Angeles or the Port of Hamburg.

With CAx values of 0.38 (20DCs) and 0.57 (40HCs) for Hamburg and values of 0.82 (40DCs) and 0.3 (40HCs) for Los Angeles, the Container Availability Index also forecasts increasing equipment volumes in these ports. The forecast takes millions of containers tracked through Container xChange into account, helping shipping companies make container sale, lease or repositioning decisions. 

The next couple of weeks will tell us if the COVID-19 situation eases in the western world. To remain competitive, especially European freight forwarders and shippers are expected to increase their usage of SOC containers in order to avoid demurrage charges. 

eaglerail
Archives, Features, Global Trade Daily, Stories

THE EAGLERAIL HAS LANDED: CEO MIKE WYCHOCKI PUSHES A “NO BRAINER” WHEN IT COMES TO MOVING SHIPPING CONTAINERS AT CONGESTED PORTS

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It’s amazing where new logistics solutions come from. They are usually born by veteran shippers with visions on how to improve an existing operation. Or it can be a customer or customers seeking help in conquering a specific challenge that eventually resonates throughout the industry.

Then there is the inception of Chicago-based EagleRail Container Logistics’ signature solution. It can be traced to a pitch meeting for a new monorail in Brazil that was attended by a port authority official who was there more as a cheerleader than a participant.

Watching a Chicago marketing man’s PowerPoint presentation about his company’s passenger monorail system to local leaders in São Paulo eight years ago, the port representative, Jose Newton Gama, marveled at how the magnetic levitation (Maglev) trains holding people would be suspended under overhead tracks.

Then the Brazilian known by friends as Newton raised his hand.

“Excuse me?” he asked the Americano. “Could your system be adapted to hold shipping containers?”

That had never occurred to project designers, whose monorail cars for passengers are much lighter than would be required for cargo containers hauled by ships, trucks and freight trains. But the marketing man shared Gama’s question with his colleagues in the Windy City, and that planted the seed that eventually bore EagleRail Container Logistics.

Chief Executive Officer Mike Wychocki was an early investor who eventually bought out that marketing man, but the first EagleRail system is named “Newton” after the Brazilian who now sits on the company’s board of advisors. “He’s a great guy,” says Wychocki during a recent phone interview. “Newton is our biggest cheerleader.”

Wychocki’s no slouch with the pom-poms himself, having pitched EagleRail at 40 ports in 20 countries over the past five years. His company, which has offices around the world, is developing its first prototype in China, and studies are underway at six ports as EagleRail sets about raising $20 million in capital. (The window for small investments had just closed when Wychocki was interviewed. His company has since shifted its focus to large investors.)

The way ports have operated for decades left no need for a system like EagleRail’s. Big ships dock, cranes remove containers stacked on their decks and each box is then moved onto the back of a flatbed truck that either hauls it to a distribution center or an intermodal yard. Until recent years, no one really thought of disrupting the process because, as Wychocki puts it, “you could always find cheaper truck drivers.”

However, truck driver shortages, port-area air pollution and congestion caused by the time it takes to load and unload ever-larger ships have prompted serious soul searching when it comes to short hauls. Expanding the size of ports is often not an option due to the cities that have grown to surround them. This has led to the creation of large container parks for trucks and/or freight trains within a few miles of ports, but getting boxes to those remains problematic—at a time when megaships are only making matters more difficult.

“There is an old saying that ports are where old trucks go to die,” says Wychocki, who ticks off as problems associated with that mode of moving containers pollution, maintenance and fuel costs, as well as the issues of public safety because some drivers essentially live inside of their vehicles, which can attract prostitution and leave behind litter and human waste. Adding even more of these dirty trucks would necessitate more road building, which only adds to environmental concerns.

With ground space at ports a constantly shrinking commodity, tunneling underground may be viewed as an option. But Wychocki points out that many ports have emerged on unstable ground like backfill, and water, power and sewer lines are usually below what’s under the streets beyond port gates. The idea of a hyperloop has been bandied about, but it would require emptying shipping containers at the port, loading the contents into smaller boxes, sending those through to another yard, and then repacking the shipping containers on the other side. “That defeats the whole point” of relieving port congestion, the EagleRail CEO says.

Ah, but every port has unused air space, which is what Wychocki’s company seeks to exploit. “If an Amazon warehouse can lift and shuttle packages robotically,” he says, “why not do the same with a 60,000-pound package? Go to a warehouse. See how Amazon works with packages. They use overhead light rails. It’s an obvious idea, so obvious. It’s a no brainer when you think about it.”

Yes, Amazon also uses drones, but can you imagine the size it would have to be to carry a 60,000-pound shipping container? Wychocki sees a suspended container track as an extension of the cranes on every loading dock worldwide, which is why EagleRail systems are also all-electric and composed of the same crane hardware to avoid snags when it comes to replacing parts.

However, Wychocki is quick to note EagleRail is not a total solution when it comes to port congestion. He calculates that among the short-haul trucks leaving a port, 50 percent are going to 500 different locations, many of which are different states away, while the other half is bound for just a couple nearby destinations. EagleRail is geared toward the latter, and the problem with getting containers to them “is not technological; it’s who controls the five kilometers between the port and the intermodal facility,” he says.

Lifting equipment at ports “is exactly the same in all 200 countries,” he adds. “The part that is not the same is the back end. What is the port’s configuration? Where do the roads come in? What we do is form a consortium and build it with each local player, such as the port authority, the road authority, the national rail company, the power company. Getting everyone involved helps get procurement and environmental rights of way.”

He concedes that getting everyone on board “varies by location,” but when it comes to environmental concerns “everyone’s kind of wanting to do this because it means fewer trucks, and the power companies would prefer the use of electricity (over burning diesel). It sounds harder than it is to get everyone rowing in the same direction.”

Wychocki points to another bonus with EagleRail: It allows for total control of one’s intermodal yard because containers come and go on the same circular route—all day long. “We take this on as a disruptive business model,” he says, noting that short-haul trucks generally involve the use of data-chain-breaking clipboards and mobile phones. EagleRail systems track containers on them in real-time, rolling in all customs paperwork and billing invoices automatically.

“It’s amazing, I just came from the Port of Rotterdam, where I was a keynote,” Wychocki says. “Even the biggest ports in the world like Antwerp were saying, ‘This is great. Why isn’t anyone else doing it?’”

Actually, EagleRail accidentally created direct competition. Wychocki explains that during the initial design phase, his company worked with a foreign monorail concern whose cars used what were essentially aircraft tires rolling inside a closed channel. Concerns about maintaining a system that would invariably involve frequently changing tires—and thus slowing down operations—caused EagleRail to reject that design in favor of another third-party’s calling for steel-on-steel wheels. The designer with tires is pressing on with its own system and without EagleRail.

“I’m glad we didn’t go that route,” says Wychocki, who nonetheless expects more serious competition once EagleRail systems are up and running. Fortunately for the company, there are plenty of ports bursting at the seams that cannot wait that long. Wychocki says a question he invariably gets after pitching EagleRail is: “Where were you 10 years ago? Usually, there is an urgency.”

That’s why “our goal was to get out of the gate fast, build market share and our brand and create a quasi-franchise network,” says Wychocki, whose business model has EagleRail owning 25 percent of a system while the port and other local entities own the rest.

He estimates that within 10 years, 12 EagleRail systems will be operating. If that sounds like a pipe dream, consider that his company’s newsletter boasts 3,000 subscribers before a system is even up and running. Wychocki does not credit “brilliant marketing” for that keen interest. “It’s because every port’s problems are getting worse. Everyone is squealing about what to do with these giant ships that cannot be unloaded fast enough. They are desperate.”

live animals
Archives, Global Trade Daily, International Trade

THE GLOBAL TRAVELS OF LIVE ANIMALS

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Horses, Asses, Mules and Hinnies Atop the Tariff Schedule

Unless you’re a farmer or animal breeder, the first item in Chapter 1 of the Harmonized Tariff Schedule is one we may think about the least – Live Animals. For most Americans, live animals are a long supply chain away from the supermarket.

At over $21 billion in 2017, global trade in live animals has increased 140 percent over the last two decades. Some 45 million hogs, 16 million sheep, 11 million head of cattle, 5 million goats and 1.9 million poultry (mainly chickens) were transported around the globe, some for breeding and about 80 percent intended for consumption.

A specialized segment within the transportation sector is dedicated to transporting live animals by air, land and sea – from air cargo, tractor trailers and trains, to ocean container shipping.

HTS snippet 0101

Shifting Resource Burdens

The world will be home to 9.7 billion people by 2050. With more mouths to feed, agriculture production must become more efficient against the challenges of limited arable land, energy and water resources, especially in developing countries. International development agencies promote raising livestock as a way to increase income for smallholder farmers (owners can sell products and/or offspring) and to achieve greater food security in rural areas through access to high quality proteins. Importing livestock in the last few months of their life can reduce expenses associated with animal feed and veterinary care while conserving limited water resources.

The water-stressed Middle East region has become a major importer of live animals. Demand for meat and dairy products has grown steeply in Egypt, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar and Saudi Arabia. Importing mature live animals avoids the need to rear animals from birth, shifting the water burden while meeting demand for animals freshly slaughtered in adherence to religious requirements.

Trade in live animals 3x increase

Trade in Genetics, No Goats No Glory

Countries are investing in improving their livestock by either importing live animals or importing frozen semen and embryos for artificial insemination, a process that is achieving higher success rates as costs are coming down. Global trade in purebred animals for breeding in 2017 was a $780 million industry. The animal genetic market is projected to grow from $4.2 billion in 2018 to $5.8 billion by 2023.

In November last year, 1,503 U.S.-origin Holstein heifers valued at $3 million were sold out of Statesville, North Carolina and shipped to Egypt aboard a livestock carrier in an effort by the Government of Egypt to improve the country’s dairy operations supporting output of milk for yogurt and cheese. Qatar is importing American-born dairy cows to surmount trade bans by neighboring countries.

Chickens are by far the largest category of live animals traded globally with hogs coming in second. But it’s dairy goats that could prove key to achieving the United Nations’ 2030 Agenda for Sustainable Development. Goats consume fewer resource inputs than cows, goat milk is nutritious, and women often have strong roles in dairy goat ownership and management.

Caprikorn Farms is the oldest goat dairy in Maryland. Raising some of the best dairy goats in the United States and the world, their genetics are in demand. They have worked with Russian authorities to not only send several live animal shipments to Russia but also improve Russia’s health protocol for international shipment. Ten of their goats even flew to Qatar on a private jet.

Bees also get in on the global trade act. Not only do bees circulate throughout the United States to pollinate our many crops, $48.1 million worth of live bees – including Queen bees and semen — were exported globally in 2018. Europe shipped $26.5 million or 55.2 percent of the global total.

Live animal trade routes 2017

Protecting Livestock on the Journey

While North American cattle and hogs have a short truck ride or may even live on ranches along the borders, many animals face a long ocean journey during which their health can be compromised. They are sometimes relegated to older vessels that may be converted from general cargo and not purpose-built to transport the animals in safe conditions. Often on journeys for weeks at a time, animals are at risk for fatigue, heat stress, overcrowding, injury and the spread of disease in close quarters.

The World Organization for Animal Health (OIE) issued the Terrestrial Animal Health Code in 2019 that provides standards for transporting animals by land, sea and air to protect the health and welfare of the animals and prevent the transfer of pathogens via international trade in animals.

As the global population increases and agricultural producers seek to maximize the resources available to them while improving output, global trade in live animals is likely to continue to grow. Standards and cooperation in international trade practices will need to evolve along with that trend.

Contributor Sarah Smiley lives on her family farm in Appalachia where they have raised fainting (myotonic) goats and Charolais cattle for more than 20 years.

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Sarah Smiley is a strategic communications and policy expert with over 20 years in international trade and government affairs, working in the U.S. Government, private sector and international organizations.

This article originally appeared on TradeVistas.org. Republished with permission.

antwerp xl
Archives, Executive Education, Global Trade Daily

ANTWERP XL: Nominate Yourself or a Colleague for the Breakbulk 40 Under 40 NOW!

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Antwerp XL is searching for the breakbulk industry’s 40 most dynamic and influential professionals under the age of 40 in a new initiative celebrating the next generation of the industry.

Professionals working in the industry are encouraged to self-nominate if they are under 40, or nominate eligible colleagues if they believe they have contributed significantly to the sector.

Mark Rimmer, AntwerpXL Divisional Director, says, “Attracting and retaining the next generation of talent is absolutely critical to the long-term success of the breakbulk industry. It’s where the industry’s future ideas, innovation, inspiration and leaders will all come from.”

“That’s why we are so proud to be launching our 40 Under 40 initiative.  We want to identify and celebrate those younger players within the industry and showcase their contribution so far. So, if you know someone who merits being recognised, or you are that person, we want to hear from you.”

Entrants will be judged by a panel of industry experts looking for young professionals who, thanks to their excellence and commitment, are making a real difference to their organisation and/or the wider breakbulk industry. The official 40 Under 40 will comprise those with the greatest potential to become industry leaders in the future and those who have achieved greatness already.

The successful XL 40 Under 40 will be celebrated at AntwerpXL, the world’s only event dedicated exclusively to maritime breakbulk set to be held 21 – 23 April 2020, with a dedicated gallery on the AntwerpXL website and a special drinks reception held in their honour at the event itself.

The selected 40 will also receive VIP passes for AntwerpXL, giving them access to the event’s conference programme and exclusive zones including the VIP lounge. They will also be invited, as guests of honour, to a special NextGen debate taking place during the show and have access to other exclusive events in the year after Antwerp XL.

Entries close Friday 27 March. To find out more about AntwerpXL or to nominate yourself or a colleague, visit: www.antwerpxl.com/40Under40.

parcel
Archives, Global Shippers 101, Global Trade Daily

The State of “Fast and Free” Delivery: What Retailers and Parcel Carriers Should Know

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Thanks primarily to Amazon (and the explosive growth of Amazon Prime), consumers in 2020 are conditioned to expect that virtually anything bought online can be shipped for free. That’s true for small orders like prescriptions and batteries, and for huge items like appliances and tires. If it means a shopper has to buy an annual subscription, or spend a little more to meet a free-shipping minimum, most people would consider that a low bar to meet.

But as every retailer and ecommerce seller knows, shipping is never free. Today’s multi-billion-dollar parcel carriers are getting paid. They moved nearly a billion parcels this past peak season. That shipping cost is being ultimately absorbed by sellers and is reflected in the price buyers are paying for products.

And parcel volume growth isn’t slowing down – it’s accelerating. According to the Pitney Bowes Parcel Shipping Index, global parcel shipping volume grew 70% from 2014 to 2017, to 74.4 billion parcels. The index projects global parcel volume to rise at a rate of 17% to 28% from 2018 to 2020, surpassing 100 billion parcels this year.

Handling increasing parcel volume isn’t just about figuring out how to do more of the same. The process of getting things where they need to go is under a transformation. In a recent report, Gartner found that transportation is the largest portion of delivery costs, due to a shift from carriers handling bulk freight to small parcels.

[Parcel and last-mile delivery will] continue to be the fastest-growing shipment segments due to increases in multichannel retail, eCommerce in B2B and same-day delivery offerings.

Gartner also observed what many companies are feeling. As volume continues to grow, companies only have time to react instead of plan. That means many are missing opportunities to revolutionize parcel logistics with innovation and alternative delivery models.

How fast does “fast” need to be?

According to research from Freightwaves, consumers unsurprisingly still have an appetite for fast delivery, with 60% of shoppers saying they’ve abandoned an online purchase because of slow delivery times. With record volumes to handle – and so much at stake with consumer expectations – efficiency, on-time consistency, and flexibility are key for parcel delivery services, whether it’s same-day, next-day or deferred.

This year’s U.S. peak shipping season saw about a billion package deliveries (up 4.5% from 2018). Retailers are offering more same-day options, which increases demand and the need for trucks, local delivery vehicles, drivers, warehouses and warehouse workers.

This year, the challenge was also complicated by a shorter selling season (the holiday season was six days shorter in 2019 than is typical), new restrictions on driver hours of service, and the December 16 implementation of new rules for Electronic Logging Devices in commercial trucks. All of these factors impact capacity and the ability of networks to deliver fast and on time.

Emerging shift in consumer behaviors

On the flip side of the “freer and faster” coin is Gartner research analyst Tom Enright. He’s counseled retailers on their supply chain and fulfillment strategies for more than a decade.

In a groundbreaking report published in November 2019, he detected an emerging shift in consumer behavior: “Consumers are starting to express increased concern about the environmental impact of retailer’s shipping practices, and are seeking slower, more sustainable options.”

Consumers are now defining convenience as order fulfillment on their terms, and they’re expressing more and more concerns about the environmental impact of fast, one-off deliveries.

It’s a conflict between three consumer choices:

-The desire for instant gratification

-The price reduction they can get for waiting longer for a delivery

-The impact fulfillment speed has on transportation, packaging and other environmental issues.

According to Enright, for retailers, these shifting demands are driving the emergence of two new requirements that are somewhat at odds with current models:

-Retailers must be more environmentally sustainable in order fulfillment operations.

-Retailers must offer a wide range of shipping speeds and prices, especially if incentives or other benefits are included in the offering.

Considerations for retailers and parcel carriers

That means retailers – and their parcel delivery partners – need to consider more flexible fulfillment options. These will need to be able to satisfy a consumer who wants a totally different delivery than currently exists. Companies will need to consolidate multiple online purchases from different retailers, have them combined using less packaging and have it delivered as one shipment a week from Tuesday. That’s instead of three separate shipments expedited for delivery tomorrow – or even same-day.

Major retailers like Amazon, Walmart, Target, and The Home Depot are doubling down on offering same-day delivery options. And for parcel delivery providers, it remains a highly fluid and exciting market. New network models are not only welcome, but will be required to meet the ever-evolving demands of shippers.

The explosive growth of package volumes, and consumers’ desire for next-day and, increasingly, same-day delivery, aren’t likely to wane anytime soon. And retailers and parcel carriers will need to pursue creative, innovative ways to keep up with those expectations and meet that demand.

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Valerie Metzker is the Head of Business Development at Roadie, a crowdsourced delivery service that works with consumers, small businesses and national companies across virtually every industry to provide a faster, cheaper, more scalable solution for scheduled, same-day and urgent delivery. With over 150,000 verified drivers, Roadie covers 89% of U.S. households — the largest local same-day delivery footprint in the nation.