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AMERICA’S 50 LEADING 3PLs: IT’S CLEAR THIRD-PARTY LOGISTICS COMPANIES ARE NEEDED NOW MORE THAN EVER.

logistics
America's Leading 3PLs, Archives, Features, Global Trade Daily

AMERICA’S 50 LEADING 3PLs: IT’S CLEAR THIRD-PARTY LOGISTICS COMPANIES ARE NEEDED NOW MORE THAN EVER.

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The logistics industry has faced more than its fair share of challenges over the past year. 

As economies were brought (literally) to a halt by lockdowns and transport restrictions, the process of moving goods from A to B became riddled with added complexity, cost and difficulty. 

However, what the pandemic period has shown is just how critical the likes of third-party logistics (3PL) companies are to keeping all of our lives moving forward. Logistics workers have been among the unsung heroes who have often been on the frontline as the virus swept (and continues to sweep) its way across many parts of the world. 

The first part of this year’s top 50 takes a broad sweep of just some of the companies that continue to go above and beyond to go keep industries functioning–manufacturing, defense and ecommerce among them. 

Next is a look at some specific specialties that make particular 3PLs standout. Here, we list companies that thrive on technology, specialize in multimodal offerings and offer service to the more remote states in the USA. 

The third and final chapter of our top 50 charts some of the industry leaders that can provide inspiration to women seeking careers in logistics. The number of women truck drivers industrywide has grown 68% since 2010, with a 30% rise between 2018 and 2019. While this sort of trajectory is promising, women still only make up 10% of our long-haul drivers, meaning there is still plenty of work to do. We look at a handful of firms with inspirational female leaders and managers helping to steer their progress. 

3PLs BY SECTOR

Manufacturing 

Holman Logistics: Established in 1864, Holman Logistics has been a longstanding partner for manufacturing firms through the decades. Its manufacturing support services include material inventory management, quality control, shipping and receiving, and workforce management. Holman works closely with many well-known brand manufacturers of both CPG and durable goods. www.holmanusa.com 

UTXL: During its 24 years of service, Kansas City-based UTXL has arranged more than 1 million shipments with a 98% on-time delivery rate. Many of its customers are longstanding clients in the manufacturing space, from building products suppliers to automotive parts producers. www.utxl.com 

More 3PLs 

–Transplace

-United Facilities

Defense and aerospace

Phoenix Logistics: Based in Orlando, Florida, Phoenix Logistics has been providing engineering, manufacturing, IT, and logistics and supply chain services to the defense, aerospace, and industrial markets for 30 years. The company serves OEMs, Tier 1 and 2 suppliers, and government customers worldwide, including the US military. www.phxlogistics.com 

Neovia: Located in Irving, Texas, Neovia provides flexible solutions designed exclusively for the time-sensitive, service-critical requirements of the aerospace and defense industry. Its suite of services comprises inventory forecasting, warehousing, performance monitoring, replenishment and deployment, network design, supplier management and performance-based logistics. www.neovialogistics.com 

More 3PLs

–Omni Logistics 

-Hawthorne Logistics

Ecommerce

Whiplash: Formerly known as Port Logistics Group, California-based Whiplash specializes in omnichannel ecommerce fulfillment services, offering seamless integration with the world’s most powerful and revered ecommerce platforms. Real-time order and inventory insights are key features of its solution, which are powered by an open API and backed up by experienced support personnel. www.whiplash.com 

Rakuten SUPER LOGISTICS: Supported by a one- to two-day U.S. ground delivery network with sites spanning east to west, Rakuten SUPER LOGISTICS positions itself as an expert capable of empowering ecommerce retailers. Its solutions integrate with giant online retail platforms, including Amazon, shopify, eBay and Walmart. www.rakutensl.com 

GEODIS: With a direct presence in 67 countries and a global network spanning 120 countries, GEODIS supports a huge number of retailers with their online operations. The company recently launched an extended GEODIS eLogistics service in the U.S. to provide best-in-class ecommerce fulfillment solutions to emerging direct-to-consumer brands. The service will operate from three key locations in Indiana, California and New Jersey. www.geodis.com    

More 3PLs 

–ShipBob

-Seko Logistics

Food & drink

Arrive Logistics: With more than 1,300 employees and over 70,000 unique carriers, Arrive Logistics serves customers through several specialized divisions. The Arrive Fresh team is a centralized, experienced team that is uniquely equipped to solve the challenges of moving produce, meat, seafood, dairy and nursery freight. www.arrivelogistics.com 

McLane Global Logistics: The McLane family has been a proud partner of the U.S. food industry for more than 120 years. Based out of a 285,000-square-foot distribution center in Houston, Texas, the firm offers a complete package of food logistics services. This includes food grade warehousing such as organic certified storage and temperature-controlled facilities, fulfillment, re-packing, transportation and technology services for importing, exporting and domestic business. www.mclanegloballogistics.com 

More 3PLs

–Genpro

-RMX Global Logistics

Healthcare

TRIOSE: In its 20-year history, TRIOSE has supported more than 10,000 healthcare locations with their supply-chain operations. The company offers a broad range of smart, full-service supply chain solutions to hospitals and healthcare systems across the United States, leveraging a mix of technology- and human-based support mechanisms to assist clients. www.triose.com 

Cardinal Health: Healthcare logistics has been a specialty of Cardinal Health since 1995. The company is headquartered in Dublin, Ohio, and is also a global manufacturer and distributor of medical and laboratory products, as well as a provider of performance and data solutions for healthcare facilities. www.cardinalhealth.com 

More 3PLs

–The Jay Group 

-Rhenus Logistics 

3PLS BY SERVICE SPECIALTY

Technology platforms 

R2 Logistics: R2 Logistics prides itself on leveraging several technology platforms to better serve its customers. Its Transport Management System (TMS) is flexible and scalable, offering features such as KPI reporting, automated decision making and provision of actionable data to underpin supply chain optimization efforts. www.r2logistics.com 

GSC Logistics: With locations in Oakland, Tacoma and Seattle, GSC Logistics has been operating for some of the USA’s largest retailers and manufacturers since 1988 and occupies some of the most strategic gateways on the West Coast. Its offering is based around high-performance technology and platforms which help its clients to mitigate costs through proactive planning and fleet scalability solutions. www.gsclogistics.com 

Transportation Insight: Transportation Insight empowers shippers and carriers with hybrid digital logistics services backed by proprietary technology, data and deep industry human expertise. Based in North Carolina, the firm enables its customers, which typically operate in retail and manufacturing industries, to harness the power of big data to inform strategic supply chain decisions. www.transportationinsight.com 

Coyote Logistics: A ‘tech + humanity’ approach underpins the 3PL offering from Coyote Logistics, something which enables it to keep up with rapidly evolving supply chain trends. For instance, its new pricing framework doesn’t incentivize volume and gross margins, but instead provides accurate rates and optimal matches for customers based on AI and machine learning. www.coyote.com 

Werner Enterprises: Supported by cutting-edge technology, Werner Enterprises is on its way to becoming the first North American carrier to move its entire tech stack and operations to the cloud. This includes the implementation of MasterMind, a new cloud-based transportation management system, and Carrier’s EDGE, a self-service digital platform designed to increase available freight visibility. www.werner.com 

CT Logistics: Thanks to a range of in-house software systems, CT offers customized services and programs which combine to present a comprehensive, global supply chain solution for customers. The firm has been in operation since 1923 and has moved with the times in order to remain relevant. Today, many of its applications and services are available as SaaS (Software as a Service) and BPaaS (Business Process as a Service) via the cloud. www.ctlogistics.com 

More 3PLs 

–EXIM Trade Options

-LFS

-NEON Logistics

Remote locations

Lynden: Lynden offers complete 3PL services in, out and within Alaska, Hawaii and Puerto Rico, as well as many locations around the globe. The company is regarded as a particular expert in Alaska shipping and has been operating in the state since 1954, servicing a diverse array of industries including energy, mining, construction, seafood, retail and manufacturing.  www.lynden.com 

Carlile Transportation: While not fitting the typical profile of a 3PL, Carlile Transportation is a go-to for companies looking to reach many of the remote and inaccessible parts of Alaska. As well as transport, the company also provides warehousing and brokerage services, among other solutions, for small businesses. www.carlile.biz

More 3PLs

–Direct Drive Logistics

–Hawaii Transfer Company

Multimodal networks

Echo Logistics: Since its founding in 2005, Echo has built strong partnerships with over 50,000 carriers, creating a robust network that allows the company to move over 16,000 shipments every day for more than 35,000 clients. With its multimodal transportation solutions, the firm serves corporations of all sizes, from small and medium-sized businesses to Fortune 500 companies. www.echo.com 

A.N. Deringer: In 1919, Alfred Neel Deringer founded the firm that today employs more than 450 supply chain professionals. It is the largest privately-held customs broker in North America, providing solutions over land, air and sea thanks to its formidable network of multimodal transit options. www.anderinger.com 

DACHSER: Since the founding of this family-owned enterprise in 1930, DACHSER has evolved into a global market leader in system logistics. With a presence in 24 locations around the world, the firm employs well over 650 staff and handled more than 214,000 tons of cargo in 2020, utilizing its multimodal capabilities, including air, sea and rail freight services. www.dachser.com 

More 3PLs 

–C. H. Robinson

-NTG Freight

-Hub Group 

3PLs empowering women in logistics

NFI Industries: Having been in business since 1932, NFI prides itself on being a champion of sustainability, with the wellbeing of its people and communities at top of mind. It remains a family-owned business, and was recently recognized by the Women in Trucking Association (WIT) as one of the best companies for women to work for in transportation. www.nfiindustries.com 

Langham Logistics: Langham Logistics stands proud as the only women-owned 3PL with GMP storage and distribution facilities in both the Midwest and Southwestern regions of the United States. The company was co-founded by President & CEO Cathy Langham, who opened two franchises for trucking and air freight three years after graduating from the IU Kelley School of Business before setting up Langham with her brother and sister. www.elangham.com 

Kenco Group: In business for more than seven decades, Kenco Group is the largest woman-owned 3PL company in the United States. Its purpose is simple: “to empower our people and customers through connected solutions.” Jane Kennedy Greene sits as chairwoman of the Board of Directors, which is headquartered in Tennessee, while the company has operations in 30 U.S. states and Canada. www.kencogroup.com 

Knichel Logistics: Knichel Logistics is a woman-owned, non-asset-based provider of transportation and logistics services, including intermodal, trucking, specialty equipment and various ancillary services. The company was founded by Kirsty Knichel, her siblings and father William, who she took over from as president & CEO in 2009. Today, she owns a majority stake in the business and hopes her success will inspire other women to step into the industry. www.knichellogistics.com 

BAT Logistics: In March 2021, the Women in Trucking Association announced its fourth annual list of Top Women to Watch in Transportation, with BAT Logistics’ Ashley Jankowski among them. She currently serves as vice president and was selected along with her peers for their significant career accomplishments in the past 12 to 18 months as well as efforts to promote gender diversity. www.batlogistics.com 

J.B. Hunt: As it celebrates passing 60 years in business J.B. Hunt defines itself as a people-first company founded on innovation, disruption and service. Co-founder Johnelle Hunt has become one of the most influential women in the transportation industry after setting up J.B. Hunt with her husband in 1961. She regularly speaks in front of female audiences, using her story to inspire others into pursuing a career in the 3PL industry. www.jbhunt.com 

Odyssey: Several of Odyssey’s senior management are women. Last year, Lindsey Shellman, vice president of WIN Business Services–a web-based tool that helps shippers manage their freight with just a few keystrokes–was named one of Supply & Demand Chain Executive’s Women in Supply Chain. “As a supply-chain leader, it is my responsibility to provide equal opportunities and create a work environment where women can contribute and excel,” she stated in response. www.odysseylogistics.com 

ReedTMS Logistics: Addressing issues of gender and racial equality is a key part of ReedTMS Logistics’ mission, and the company routinely features in the Women in Trucking Association’s best companies to work for lists. In 2019, two of its female managers also gave a keynote presentation on the topic of creating an inclusive company brand at WIT’s Accelerate Conference and Expo. www.reedtms.com 

U.S. Xpress: Women in management positions at U.S. Xpress are making significant contributions to the success of the business and their customers. Vice President of Customer Experience Julie Van de Kamp was named one of Women in Trucking’s 2020 Top Women to Watch in Transportation, and she also headed a leadership panel hosted by the Massachusetts Institute of Technology’s Women in Supply Chain Initiative to mark Women’s History Month earlier this year. www.usxpress.com 

More 3PLs 

–BlueGrace Logistics

–Aria Logistics 

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

Global Imports of Printing Paper Fall Dramatically, but China Increases Its Purchases

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

Digitalization has put pressure on the world’s trade of printing and writing paper. Over the past decade, global imports of printing and writing paper dropped from 47M tonnes in 2010 to 31M tonnes in 2020. In value terms, imports declined to $27.6B. The U.S., Germany and France remain the largest importers of printing and writing paper worldwide. China features as the only county that boosted its paper imports last year. In 2020, the average printing and writing paper import price fell by -3.2% y-o-y to $899 per tonne 2020. Germany, Indonesia, Finland and Sweden constitute the largest exporters of printing and writing paper.  

Global Imports of Printing and Writing Paper

Under the pressure of digitalization, global imports of printing and writing paper dropped from 47M tonnes in 2010 to 31M tonnes in 2020, a decrease of -34%. In value terms, imports reduced from $34.4B in 2019 to $27.6B (IndexBox estimates) in 2020.

Germany (3.3M tonnes) and the U.S. (3.2M tonnes) represented the major importers of printing and writing paper in 2020, accounting for approx. 11% and 10% of total imports, respectively. France (1.9M tonnes) took a 6.3% share (based on tonnes) of total imports, which put it in second place, followed by the UK (5.3%) and China (4.9%). Italy (1,145K tonnes), Poland (1,009K tonnes), Turkey (813K tonnes), Japan (690K tonnes), Singapore (649K tonnes), India (628K tonnes), Spain (598K tonnes) and the Netherlands (545K tonnes) followed a long way behind the leaders.

In value terms, the largest printing and writing paper importing markets worldwide were the U.S. ($2.9B), Germany ($2.8B) and France ($1.7B), together comprising 27% of global imports. The UK, China, Italy, Poland, Spain, Turkey, Japan, the Netherlands, Singapore and India lagged somewhat behind, comprising a further 29%.

Among the largest importers, China was the only country that increased purchases of printing and writing paper from abroad. The value of Chinese purchases rose from $0.9B in 2019 to $1.2B in 2020.

The average printing and writing paper import price stood at $899 per tonne in 2020, reducing by -3.2% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was the Netherlands ($1,186 per tonne), while India ($749 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Spain, while the other global leaders experienced more modest paces of growth.

World’s Largest Suppliers of Printing and Writing Paper

Germany (4.2M tonnes), Indonesia (3.2M tonnes), Finland (2.7M tonnes), Sweden (2.2M tonnes), China (1.8M tonnes), Canada (1.8M tonnes), Austria (1.6M tonnes), Portugal (1.3M tonnes), Brazil (1.2M tonnes), South Korea (1.1M tonnes), the U.S. (1.1M tonnes) and Italy (1M tonnes) represented roughly 75% of total exports of printing and writing paper in 2020. The Netherlands (794K tonnes) followed a long way behind the leaders.

In value terms, the largest printing and writing paper supplying countries worldwide were Germany ($3.8B), Finland ($2.3B) and Indonesia ($2.1B), together comprising 30% of global exports. China, Sweden, Canada, Austria, the U.S., Portugal, Italy, South Korea, Brazil and the Netherlands lagged somewhat behind, accounting for a further 45%.

Source: IndexBox Platform

persimmon
Archives, Global Trade Daily, News

China and Uzbekistan Emerge as the Fastest-Growing Persimmon Exporters

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

China and Uzbekistan recorded double-digit growth rates of persimmon export value over the last year. The global exports rose by +18% y-o-y to $695M in 2020. Spain, Azerbaijan, China and Uzbekistan constitute the largest persimmon suppliers worldwide, accounting for 85% of the total export volume. The average persimmon export price spiked by +6.4% y-o-y to $1,091 per tonne in 2020. Russia remains the world’s largest importer of persimmons.

Global Persimmon Exports by Country

In 2020, the volume of persimmons exported worldwide was estimated at 637K tonnes, picking up by 11% from the previous year’s figure. In value terms, persimmon exports soared by +17.7% y-o-y to $695M (IndexBox estimates) in 2020.

In 2020, Spain (211K tonnes), distantly followed by Azerbaijan (126K tonnes), China (108K tonnes) and Uzbekistan (97K tonnes) represented the main exporters of persimmons, together committing 85% of total exports. The following exporters – Lithuania (14K tonnes), Poland (12K tonnes) and Georgia (11K tonnes) – each recorded a 5.7% share of total exports.

In value terms, the largest persimmon supplying countries worldwide were Spain ($234M), China ($206M) and Azerbaijan ($92M), with a combined 77% share of global exports.

In terms of the main exporting countries, China (+62.1% per year) and Uzbekistan (+48% per year) have the highest growth rates of the value of exports.

In 2020, the average persimmon export price amounted to $1,091 per tonne, picking up by +6.4% 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 ($1,909 per tonne), while Uzbekistan ($499 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Lithuania, while the other global leaders experienced more modest paces of growth.

World’s Largest Persimmon Importers

Russia represented the major importer of persimmons globally, with the volume of imports resulting at 149K tonnes, which was approx. 27% of total imports in 2020. Kazakhstan (58K tonnes) occupied the second position in the ranking, followed by Germany (55K tonnes), Ukraine (40K tonnes), Italy (31K tonnes), Thailand (28K tonnes) and France (28K tonnes). All these countries together occupied an approx. 44% share of total imports. Belarus (19K tonnes), Lithuania (16K tonnes), Poland (12K tonnes), Canada (9.3K tonnes) and the UK (8.4K tonnes) held minor shares of total imports.

In value terms, Russia ($120M), Germany ($75M) and France ($37M) were the countries with the highest levels of imports in 2020, together comprising 43% of global imports. These countries were followed by Ukraine, Italy, Kazakhstan, Thailand, Canada, Lithuania, Belarus, Poland and the UK, which together accounted for a further 32%.

Source: IndexBox Platform

FSM
Archives, Global Trade Daily, Software

What Is the Best Field Service Management Software?

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Field service management (FSM) technology is essential for businesses wanting to maximize their team’s productivity. Features like schedulers, dispatching utilities, and user-friendly mobile apps make managing team members in the field easier.

The quality and availability of these features can vary significantly among platforms, however. Here are the most essential FSM software features and a comparison of the top options.

Essential and Cutting-Edge FSM Software Features

Most FSM software will include a few of the same basic features. Industry-leading platforms will almost always offer job scheduling, dispatching, work order management and contact management tools. Typically, these programs will also come with apps that allow workers to access the information they organize remotely or via a smartphone while in the field.

Newer, more sophisticated platforms are also adding in more advanced features that can provide some additional functionality.

1. Route Optimization

Route-planning tools find the most efficient route for a given job, including multistop trips. They help field members move from one location to another while reducing mileage, travel time and gas consumption.

In some systems, real-time data from vehicle GPS will be used to find the best possible routes. Route optimization may also be combined with dispatching optimization to help a business respond to new work orders as quickly as possible.

These tools can help businesses overcome some of the most common route optimization challenges and improve routing efficiency.

2. Intelligent Scheduling

Many managers rely on automatic or simple manual scheduling to assign field workers to jobs. This approach can work, but it’s often extremely inefficient.

Intelligent scheduling leverages algorithms that consider all the workers across an organization, their availability, current location and other information to more effectively assign them to jobs. In the same way route optimization takes advantage of available data to improve routing, these tools get the most out of scheduling workflows.

Most modern service fleets outfit their workers with various diagnostic and repair tools, especially if the business services complex or critical machinery, like construction equipment.

The specific toolkit in a vehicle or with a particular field worker may vary significantly — meaning each worker may not be equipped for every job. Varying skill sets can also make the choice of worker critical. Intelligent scheduling technology can take this into account and only look for workers with the correct tools for a job.

In practice, these features can help companies complete more jobs with the same resources while offering customers faster response times and improved service windows.

3. Open APIs

FSM platforms often include integrations for tools businesses are already using — like Outlook, Quickbooks or even industry-specific software like digital construction tools. These integrations allow the software to share data directly with these tools and integrate the new FSM into existing workflows.

Extensive, open APIs help simplify the learning process for a new FSM. The software integrates with tools companies are already using, reducing the number of new features workers must learn how to use. They also help make an FSM much more scalable.

These extensions may require additional payment or IT investment, but they can extend platforms’ functionality.

What to Consider When Reviewing FSM Options

Not all platforms offer these tools. Managers interested in these features should carefully investigate a potential FSM tool to ensure it provides the functionality they desire.

These are five of the most popular field service software options available.

1. FieldOne

FieldOne is an FSM tool designed for large and enterprise-level businesses that offer field service. Available features include automated routing and workflow automation. The software works across several platforms.

Native apps for iOS, Android, and Windows phones and tablets are available, and because the tool is cloud-based, workers using these apps can access the FSM software from just about anywhere.

The software is built with the Microsoft Dynamic Platform, enabling easy integration with tools that can extend the base software’s functionality.

Pricing for the software can vary. The FieldOne developers offer a free trial, meaning businesses can experiment with the software without committing to a subscription.

2. Jobber

Jobber is an FSM platform built to help home service businesses coordinate their field team and stay on top of work orders.

The software includes a client manager and hub that allows business customers to approve quotes, check appointment details, pay invoices and request work orders. The tool also provides scheduling and quoting features and a one-on-one support system for when users need help troubleshooting.

Various pricing plans for Jobber exist, starting at as slow as $35 per month for a single user. The most expensive “Grow” plan costs $196 per month and supports up to 30 users. Costlier plans offer additional features, and some functionality — like GPS tracking — isn’t available with the cheapest “Core” plan.

Jobber offers a free trial, allowing interested businesses to test the software before investing in a subscription.

3. FieldEdge

FieldEdge is built for contractors, particularly providers of HVAC, plumbing and electrical services. The program supports a wide range of company sizes, from individual freelancers up to enterprise-level businesses.

Software features include inventory and workflow management, an activity dashboard, reporting and mobile access. The program supports web, Android and iPhone access.

FieldEdge also offers a client portal that allows customers to review information related to work orders, invoices and other essential information. The software provides seamless integration with QuickBooks, which can help to simplify business record-keeping.

Pricing for FieldEdge is determined individually for a company and customized based on the business’s needs. An available 14-day free trial gives companies a chance to experiment with the software.

Find the Right FSM Software

Choosing the right FSM can help any business streamline operations and deliver better service to customers faster. These three FSM tools are some of the most popular picks.

The best FSM software for a business will depend on that company’s needs. Looking for key features like route optimization, client portals and APIs will help managers determine if a particular software will simplify their business’s workflows.

___________________________________________________________________

Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

glove
Archives, Global Trade Daily, News

European Surgical Glove Imports Soar Over $1.8B

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

In 2020, EU surgical glove imports exceeded $1.8B, reaching the highest level ever recorded. In physical terms, European imports of surgical gloves rose from 20.6B in 2019 to 35B pairs in 2020. Germany, the Netherlands and Denmark imported 69% of the total supplies in the EU. Germany, the largest European importer, saw a 10%-growth of the import volume last year, while the Netherlands doubled its purchases from abroad. In 2020, the average surgical glove import price in the EU grew by +14% y-o-y to $53 per thousand pairs. 

EU Surgical Glove Imports

In 2020, imports of surgical gloves in the EU surged from 20.6B in 2019 to 35B pairs in 2020. In value terms, surgical glove imports soared from $1B in 2019 to $1.8B (IndexBox estimates) in 2020.

The countries with the highest levels of surgical glove imports in 2020 were Germany (9.8B pairs), the Netherlands (8.2B pairs) and Denmark (6B pairs), together reaching 69% of total import. It was distantly followed by France (1.6B pairs), comprising a 4.5% share of total imports. The following importers – Austria (1,436M pairs), Sweden (1,237M pairs), Spain (1,196M pairs), Poland (988M pairs), Italy (769M pairs), Belgium (715M pairs) and Hungary (574M pairs) – together made up 20% of total imports.

In 2020, Denmark saw the most notable growth of imports in physical terms. Denmark increased surgical glove imports from 0.6B pairs in 2019 to 6B pairs in 2020. Over this period, the Netherlands doubled its imports of surgical gloves, while Germany’s purchases rose by +10 y-o-y.

In value terms, Germany ($725M) constitutes the largest market for imported surgical gloves in the EU, comprising 40% of total imports. The second position in the ranking was occupied by the Netherlands ($161M), with an 8.8% share of total imports. It was followed by France, with a 6.9% share.

The surgical glove import price in the EU stood at $53 per thousand pairs in 2020, with an increase of +14% 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 Italy, while Denmark was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Italy, while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

esg
Archives, Global Trade Daily, International Trade, News

The Consequences of ESG Risk Exposure

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Last week, news emerged linking an electronics company to the transport and employment of labor in Xinjiang, an autonomous region in northwest China with documented occurrences of widespread human rights violations. This is the latest in a series of reports and white papers investigating supply chain connections to this region and the forced labor on its inhabitants. These reports not only expose the atrocities and human suffering in the region but also reveal significant supply chain risks that may not even be on an organization’s radar. With more than half of companies lacking supply chain visibility across their extended ecosystem, organizations are at a growing risk of both environmental, social, and governance (ESG) reputational risks, as well as regulatory risks as governments across the globe ban supply chain exposure to these human rights violations.

Nth-tier Supply Chain Risks

Lacking visibility across the supply chain leaves companies susceptible to blind spots and risks of which they may not be aware. For instance, inspired by this news, we identified almost one hundred companies with direct relationships to the company highlighted in their article, a number that significantly expands when looking beyond the first-tier. Thanks to the hyper-specialization and opacity of supply chains, many companies may not be aware that they risk potential exposure to human rights violations in Xinjiang.

Below is a breakdown, by industry, of companies with direct connections to Universal Electronics Inc. (UEI). While the software industry intuitively comprises a quarter of the companies, other industries such as machinery, media, or entertainment may initially assume minimal exposure. At a time when every company is a tech company, few companies are immune to these kinds of connections.

Global Focus

These recent revelations build on a growing governmental emphasis on prohibiting forced labor from supply chains. In July, the United States government issued a joint advisory pertaining to the heightened risks for businesses with supply chain and investment links to Xinjiang. Released by the U.S. Department of State, U.S Department of Treasury, U.S Department of Commerce, the Office of the U.S. Trade Representative, and the U.S. Department of Labor, the “Xinjiang Supply Chain Business Advisory” highlighted the range of risks to which companies may be exposed when conducting business in that region. As the advisory notes, these include exposure to regulatory risks, surveillance, and human rights abuses.

This advisory reflects the growing focus on ESG supply chain risks as well as the regulatory risks related to the inclusion of prohibited and restricted companies within a supply chain. In the U.S. the Department of Commerce continues to expand various restrictions lists due to human rights violations, banning solar panels companies to numerous tech companies for their connection.

In the European Union, the Global Human Rights Sanctions Regime introduced restrictive measures of entities connected to human rights violations. This is part of a broader emphasis across the ESG spectrum, including the Sustainable Finance Disclosure Regulation as well as mandatory due diligence for human rights, environmental, and governance issues.

Further, as ESG concerns spread worldwide, so does the country coverage for impacted companies. Below is a map denoting the geolocations for the companies which are supplied by Universal Electronics. It is worth noting that, while the US and the EU have issued restrictions and guidelines in this regard, nearly 50% of UEI’s consumers are located in these regions.

Gaining Visibility Across Supply Chain Risks

The Joint Advisory notes, “Given the severity and extent of these abuses, businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. law.” Based on both market forces as well as regulatory shifts, it is increasingly essential to maintain visibility across your extended supply chain and proactively eliminate potential exposure to ESG reputational and regulatory risks.

While we quickly identified almost one hundred companies with potential ESG exposure, we only referenced direct suppliers. By looking at the second, third, fourth tier, and beyond, these numbers exponentially grow and illustrate the complex web and risks that extend throughout supply chain ecosystems.

The complexity of these networks and the growing consequences for failing to address ESG risk in the supply chain highlights the clear need for organizations to reexamine how they identify and monitor their extended business relationships.

To learn more about extended supply chain risk and the consequences of ESG risk exposure, visit interos.ai.

_____________________________________________________________

Andrea Little Limbago is the Vice President of Research and Analysis at Interos  

biological
Archives, Global Trade Daily, News, Software

BIS Imposes New Export Restrictions on Software for Biological Equipment

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On October 5, 2021, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) published a final rule in the Federal Register that places new controls on software and technology that can potentially be used for manufacturing biological weapons. The rule comes after a decision in May 2021 by the forty-three (43) participant countries in the Australia Group (“AG”) to update the AG Common Control List to include biological equipment, technology and software that could be used to manufacture biological weapons. The AG is an international organization made up of countries dedicated to the eradication of chemical and biological weapons.

BIS is implementing this rule by amending the Commerce Control List to add a new Export Control Classification Number (“ECCN”) 2D352. This new ECCN only applies to software that is (1) designed for nucleic acid assemblers and synthesizers described on the Common Control List; and (2) capable of designing and building functional genetic elements from digital sequence data. Specifically, ECCN 2D352 “applies to software that is designed for nucleic acid assemblers and synthesizers capable of designing and building functional genetic elements from digital sequence data.” Software controlled under the new ECCN 2D352 requires a license for chemical and biological weapons (“CB”) and anti-terrorism (“AT”) reasons when exported, reexported or transferred (in-country) to the destination countries identified in CB Column 2 and AT Column 1.

Additionally, the final rule amends ECCN 2E001 to include export controls on the “technology” for the development of software controlled by the new ECCN 2D352. Technology classified under ECCN 2E001 is controlled for CB and AT reasons and requires a license for export, re-export or transfer (in-country) to the destination countries identified in CB Column 2 and AT Column 1.

During the comment period, certain interested parties expressed concern that the definition is too broad and that controls for these types of software should be implemented multilaterally. BIS rebuffed these comments explaining that the new ECCN 2D352 only applies to software that is designed for nucleic acid assemblers and synthesizers and that controls for this software are multilateral since they are being implemented by all Australia Group member states. These new licensing requirements will likely apply to labs, life science companies, universities and research institutions engaged in research that involves such software and related development technology.

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Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. She leads the firm’s International Trade & Supply Chain group.

Grant Leach is an Omaha-based partner with the law firm Husch Blackwell LLP focusing on international trade, export controls, trade sanctions and anti-corruption compliance.

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Archives, Global Trade Daily, Imports/Exports, News

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

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

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

Indonesian Cocoa Butter Exports

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

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

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

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

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

Source: IndexBox Platform

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Archives, Global Trade Daily, International Trade, News

Biden Administration Shows Signs of Addressing China Trade Wars

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


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

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

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

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

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

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

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

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

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

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

The Administration intends to address broader policy concerns.

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

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

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

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

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Archives, Global Trade Daily, News

Poland’s Cigarette Exports Skyrocket to Record $4B

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

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

Poland’s Cigarette Exports by Country

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

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

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

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

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

Source: IndexBox Platform