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3rd Annual Qatar Trade Summit: A Month Away From Exploring Qatar’s Trade Opportunities

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Archives, Executive Education, Global Trade Daily, International Trade

3rd Annual Qatar Trade Summit: A Month Away From Exploring Qatar’s Trade Opportunities

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Bringing the economies closer to each has never been more imperative than in the post-pandemic period. With Qatar’s independent and robust economic growth, we are bridging the gap between the countries by gathering them under one roof to explore business opportunities.

The 3rd Qatar Trade Summit will provide a platform for industry leaders to embrace the new normal. Positioned on 9th and 10th November 2021, this event will be hosted in Intercontinental Hotel, Doha City, Qatar, where the nation’s key stakeholders will showcase exclusive development made in the past few years. The summit will accentuate the parameters attributing to the country’s vision in economic diversification.

Qatar has positioned itself as a self-sufficient and independent nation that has established diplomatic trade relations with many countries. Their new advancements in technology and innovation has placed them as one of the world’s leaders in the space of transportation infrastructure, building smart seaports and air cargos, improved supply chain and logistics, disruption in free zone innovations and implementing various technologies in trade finance for a holistic approach. Newer collaborations and investments are being made to welcome new players in the space of sports, financial services, logistics management, and retail industry to contribute to further economic growth under the Qatar Vision 2030. The upcoming FIFA world cup is the first step to the roadmap of many other initiatives that will transform Qatar’s economy and build stronger relations with the rest of the world. Qatar Trade Summit will host the contributors of this exponential growth within a month’s time to share their journey and strategies that will lead them to achieve the desired milestones.

Based on the theme “Facilitating Qatar Economic Surge beyond 2021” the summit will bring key concerns into the spotlight: technological advancements, recovering from the COVID-19 pandemic; accelerating the infrastructure developments to be prepared for FIFA World cup 2022; rethinking logistics and supply chain to meet the increasing import/export demand and building smarter ports for increased efficiency.

Under the government support of the Ministry of Commerce and Industry and Qatar Tourism, the summit will be hosting dignitaries such as H.E. Mr. Mohamed Hassan Al-Malki, Assistant Undersecretary for Industry Affairs, The Ministry of Commerce and Industry; Lim Meng Hui, CEO, Qatar Free Zones Authority; Rashid Bin Ali Al Mansoori, CEO, Qatar Stock Exchange; Heba Qadri, Managing Director, Qatar Sportstech; Mark Geilenkirchen, CEO, Sohar Port & Freezone, Oman; Glyn Hughes, Director General, The International Air Cargo Association (TIACA); Abdulaziz Al-Mikhlafi, Secretary-General, Ghorfa Arab-German Chamber of Commerce and Industry, Germany; Dr Olga Revina, Founder & Chairperson, Ukraine Qatar Business Council; Timo Hammaren, Head of Unit, D.G Trade, European Commission and many more from across the globe who will be indulging our guests in interactive presentations and panel discussions. The event will be showcasing cutting-edge solutions from our sponsored and supporting partners such as Qatar Tourism, QFZA, The Commercial Bank (P.S.Q.C), Hutchinson Ports Sohar, DHL Global Forwarding, Oracle, Ran Marine and leading media partners.

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About Organizer: © Qatar Trade Summit | Parul Rana | Email: info@nispana.com | Tel: +974 3383 4548 | Tel: +974 6677 4955 | +971 55 28 33112 | LinkedIn: Qatar Trade Summit | twitter: @tradeqatar

protein
Archives, Global Trade Daily, News

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

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

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

American Protein Concentrate Exports

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

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

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

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

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

Source: IndexBox Platform

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Archives, Global Trade Daily, Site Selection, Stories

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

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

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

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

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

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

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

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

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

MILLERSBURG, OREGON

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

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

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

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

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

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

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

ALLENTOWN, PENNSYLVANIA

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

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

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

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

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

WILKES COUNTY, NORTH CAROLINA

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

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

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

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

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

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

NEW YORK, NEW YORK

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

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

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

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

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

DECATUR, ILLINOIS

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

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

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

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

SEGUIN, TEXAS

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

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

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

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

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Archives, Global Trade Daily, Imports/Exports, News

World Glycerol Trade Intensifies

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

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

Global Glycerol Exports

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

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

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

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

Key Glycerol Importers

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

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

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

Source: IndexBox Platform

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

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

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

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

TRACKING LOCATION IN REAL-TIME

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

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

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

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

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

24/7 20-20 VISION

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

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

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

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

MORE BENEFITS IN SUPPLY CHAIN MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

potato
Archives, Global Trade Daily, Imports/Exports

World Potato Trade Slips Under $5B

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

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

Global Potato Exports by Country

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

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

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

In 2020, the average potato export price amounted to $327 per tonne, falling by -6.3% against the previous year. There were significant differences in the average prices amongst the major exporting countries. In 2020, the country with the highest price was China, while Kazakhstan was amongst the lowest.

World’s Largest Potato Importers

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

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

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

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

Source: IndexBox Platform

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Archives, Global Trade Daily, News

Global Frozen Fruit Trade Grows Robustly

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

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

Global Frozen Fruit Imports by Country

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

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

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

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

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

World’s Largest Suppliers of Frozen Fruits

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

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

Source: IndexBox Platform

sausage
Archives, Global Trade Daily, News

German Sausage Exports Grow Tangibly

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

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

German Sausage Exports by Country

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

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

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

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

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

Source: IndexBox Platform

taxes
Archives, Banking, Global Trade Daily, International Trade

Should Five Percent Appear Too Small? The Penny Lane of E-commerce.

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Benjamin Franklin may not have predicted the internet, but he got it right (inspired by Christopher Bullock’s 1716 insights) when he wrote that, “…in this world nothing can be said to be certain, except death and taxes”. On that note and in related news: buying that inflatable yellow submarine just got more costly! Slowly but surely, shopping from the hopefully convenient home sofa is becoming more expensive: what used to be a ‘tax-free experience’ is now a joyful web-shopping outing until the very end when you see a surprise invoice that includes taxes you’ve never heard of. That surprise now extends to Consumer to Consumer (C2C) sales that historically never used to incur taxes.

Probably not invited and (therefore?) a little late to the internet party, tax authorities found the long and winding road on how to subject e-commerce sales to sales and/or other taxes. With more than 50% of government income depending on taxes in most countries (up to 80% in some, according to ourworldindata.org) and booming internet sales (39% growth in Q1 2021 in the U.S., according to statista.com) nibbling away at that revenue, it’s a surprise that it took this long for the taxman to issue comprehensive legislation to get back to what once belonged. Over the last few years, as more tax authorities found the right tune for enforcing taxes on e-commerce (Australia, New Zealand, and the U.S. were recently followed by the EU and other countries), more and more taxes have appeared in that cute little checkout cart. It progressed from customs duties on international sales over a certain threshold to sales tax (or its local equivalent like consumption tax or value-added tax (VAT)) on B2C sales and, recently, many countries (including the EU) went all-in and now tax practically all internet transactions.

From a compliance perspective, multiple e-commerce platforms have been quick to implement tools for sellers to apply taxes. In many instances, taxes are automatically collected and submitted, with the seller only responsible for filing monthly or quarterly reports/returns on sales and taxes charged. And, as a considerable percentage of transactions are routed through a small number of major platforms (e.g., Amazon, eBay, Shopify, Magento), conducting audits is not reaching for Lucy in the sky. Compared to decentralized in-store retail sales, authorities have a relatively easy job with enforcement for online sales. Obligatory penalties and the threat of shutting down the seller—or even the site—when regulations are ‘forgotten’ make it easier to get taxes accounted for.

But what about those low-value exemptions? Glad you asked. The low-value exemption (Section 321 Type 86 shipments in the U.S.) may still apply on the customs duty portion of a purchase, or even on the local tax part, but e-commerce legislation in many countries requires the seller to charge taxes on every transaction, no matter how small—which is why a 5% tax on a $10 purchase is no longer impossible. Keep those pennies coming! For example, on that eBay purchase of some fine Portuguese stamps, the seller will either charge local Portuguese value added (e-commerce) tax or be required to register in the country of destination and charge that country’s sales/consumption/value-added tax—not good for the buyer’s wallet (especially as VAT can be as high as 25%), yet excellent for the tax authorities.

And the news for the Revenue Service is only getting better: e-commerce is projected to grow to $4.88 trillion in 2021, with McKinsey predicting growth of 8-9% annually in countries like Germany and France and 20% for countries in Asia. That adds up nicely, especially since taxes, as mentioned, are now collected on C2C transactions that were previously never taxed. Furthermore, with the e-commerce model having struck a serious chord with Gen Z, C2C growth is projected at 35% annually for the next four years (C2C e-commerce: Could a new business model sell more old goods?, McKinsey), which in total adds up to quite the lucrative revenue source. Quick note: this is different from the revenue related to the taxation of digital services, for example, digital marketing or reselling of user data.

While many traditional retailers, other than perhaps the barber showing photographs, have had to close due to the pandemic and the never-ending wave of e-commerce, the tax authorities are in a much better position than before to both collect and increase tax revenue on e-commerce and other sales—leaving them to safely count even more pennies from their own hopefully comfortable sofas.

Anne van de Heetkamp, is the VP of Product Management GTC at Descartes

compliance
Archives, Global Logistics, Global Trade Daily, Ocean Carriers

AN OVERVIEW ON COMPLIANCE IN OPERATIONS AND MANAGEMENT

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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