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

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/.

__________________________________________________________

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

meat
Archives, Global Trade Daily, Imports/Exports

American Canned Meat Imports Rise Steadily

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

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

American Canned Meat Imports

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

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

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

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

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

Source: IndexBox Platform

technology
Archives, Global Logistics, Global Trade Daily, Stories

TECHNOLOGY LEADS TO MEET MODERN CHALLENGES: PART III

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

OCEAN CARRIERS

Company: Atlantic Container Lines of Westfield, New Jersey

Challenge: Enhancing operations and market share for refrigerated shipments

Problem Solver: Carrier Transicold of Palm Beach Gardens, Florida

Solution: PrimeLINE refrigeration units

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

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

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

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

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

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

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

PORTS

Entity: Port of Los Angeles, California

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

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

Solution: Hydrogen fuel cell electric freight vehicles and stations

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

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

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

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

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

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

TRUCKING

Company: Paramount Transportation Logistics Services of Fort Myers, Florida

Challenge: Accelerate their digital freight management initiative

Problem Solver: Trucker Tools of Reston, Virginia

Solution: Smart Capacity real-time load tracking technology

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

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

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

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

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

WAREHOUSING

Company: GEODIS of Levallois-Perret, France

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

Problem Solver: Phantom Auto of Mountain View, California 

Solution: Remotely operated forklift

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

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

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

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

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

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

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

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

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

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

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

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

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Archives, Global Trade Daily, News

Chapman Freeborn Charter Over 20 Flights Carrying COVID-19 Test from China to Austria

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Over the past few months, Chapman Freeborn has worked with their client in Austria, Gebrüder Weiss, to transport COVID-19 test kits on over 20 charter flights.

A variety of aircraft have been used for the different transports, but a journey last week saw 110,820kg of test kits (equal to 804 CBM) traveling on an AN225, the largest aircraft in the world.

The journey started at Tianjin Binhai International Airport (TSN) where the test kits were loaded, and then onto two stopovers at Almaty International Airport (ALA) in Kazakhstan and Istanbul Airport (IST) before reaching their final destination of Linz Airport (LNZ).

 

 

The Chapman Freeborn team utilized their close network within China to ensure the handling at TSN went to plan, working with the Austrian Embassy in China to ensure the test kits would arrive in Linz on time.

Tim Fernholz, Cargo Charter Broker at Chapman Freeborn Germany, explained, “Linz Airport is perfect for the AN225 as it has an extra-wide runway measuring 60m, due to its former usage as a military airport. This was just the second time that the AN225 has landed here – the last was 18 years ago”.

After their timely arrival in Linz, the test kits were distributed to pharmacies all across Austria by Gebrüder Weiss, who is the oldest transport and logistics company in the world.

Gebrüder Weiss said, “After initially working with Chapman Freeborn on this task and noticing how successful every charter was, we decided to work with them on an ongoing basis to distribute test kits across the country. They work with us closely, but also with all their contacts, meaning we can trust them to find solutions that ensure all our flights are just as successful as the last. There have been around 20 so far with more to come – this week more kits were transported on a B747F. We would not hesitate to recommend Chapman Freeborn.”

Supply Chain Industry
3pls, Archives, Global Logistics, Global Trade Daily

Factors that are Reshaping the Supply Chain Industry

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In the modern supply chain, the technology and software you use are as important as your strategies. Plenty of decisions and actions you need to take now happen in the digital world. So, you must pick the right technology if you want to see better efficiency in your chain. In essence, choosing the solution you want to use can make or break your position on the global stage. Hence, technology is and will stay one of the main things that define the game. But, what are the exact factors that are reshaping the supply chain industry? Well, that’s what we’re here to find out.

Last year, COVID-19 took the supply chain to a new place, but not all in a bad way. The changes that took place opened new opportunities and created new practices for companies. We found ways to improve agility and eliminate risks, and things are only getting better.

To figure out how to make them better for your system, take a look at the key things that are transforming the industry at the moment.

Artificial intelligence

Algorithm-based decision-making software and data analyzers are being adopted in every niche, so it’s clear that the era of useful AI has arrived.

When it comes to the supply chains, among other things, AI can help you eliminate human error and reduce costs. It’ll allow you to restructure workflows, so all your workers can be more focused and productive. The technology will support them and make their jobs easier. We’ll explain how this happens a bit later.

The pace of technological change

Technology is developing faster than we can learn to use it. Let’s take eCommerce as an example. It provided people with a whole new way of shopping and took the world by storm. All of a sudden, you’re able to find anything you need and have it delivered to your door without ever having to leave the comfort of your home. Thanks to it, customer demands and expectations have changed. Now, they expect quick and even same-day deliveries. So, the logistics industry has to respond to that to stay in favor of people.

As a company, the only way to stay relevant is to build a reliable infrastructure and learn how to use new technology developments. Experts believe that online and mobile shopping will be the preferred way of buying for the majority of people in the future. Even today, people are getting everything from groceries to appliances online, so why would that change in the years to come?

To update your system, try to make your processes more streamlined. That will give you a better chance of keeping up with modern timeframes.

The Internet of things

We can’t talk about the factors that are reshaping the supply chain industry and not mention the Internet of things. Although most people will associate the term with smart home appliances, this technology is actually invented to deal with sensors and tracking equipment.

So, the IoT is what you’ll use if you want to reduce commercial warehousing costs. However, it can help you do much more than just that. With it, you can connect all the products, people, and processes within your organization and share information among them in real-time. Just like that, everything becomes streamlined, and your productivity goes up.

Automation and robotics

Of course, people have been using task-specific robots for decades in industries such as automotive. However, the latest generation of robots can learn how to do multiple tasks, so they have much more potential.

In supply chains, you can find a use case for these almost anywhere. Add AI into the mix, and you quickly realize that robots can bring many new things to manufacturing processes and reduce staff costs. With time, more and more repetitive or dangerous tasks will be performed by these.

Big Data

Big Data is used to track data and measure the performance of factories in real-time. In past times, to survey workers, you had to put an entire factory under surveillance. But today, modern sensors and networks give us insights that we couldn’t get before. You can even collect data on each and every employee if you want to. This way, you’ll spot problems much more easily and fix them sooner.

When you remove the bottlenecks in the delivery process, you’ll also improve the lives of your workers. You’ll streamline their roles, and they won’t waste time on unnecessary or frustrating tasks. If you rely on Big Data-driven decision-making, you’ll create a leaner business model and reduce wastage.

3D printing

If we’re talking about prototyping new products and designs, there isn’t a tool as useful as 3D printing. Companies that invested in it say that they managed to halve their prototype production times, and that’s a huge thing. If you have to wait for weeks until you get parts to start working, that creates problems right down the supply chain. It lengthens the process and increases the costs. On the other hand, 3D printing alleviates supply chain weaknesses that already exist.

Use it, and you can apply design iterations to the molds within hours. So, you’ll be speeding up the process and encouraging the closer engagement of product designers and the manufacturing team. And for that, 3D printing is one of the factors that are reshaping the supply chain industry.

Factors that are reshaping the supply chain industry – delivered

Incredible advancements in technology are at the root of all factors that are reshaping the supply chain industry. If you fail to incorporate them, you will fall behind. Therefore, follow the latest trends and introduce the changes that will streamline your processes, make your business functioning more efficiently and productive.

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Deon Williams is a freelance writer with a degree in systems engineering. Although it’s not his main job, he loves to write articles and share his expertise. In the past, Deon helped companies like zippyshelldmv.com to streamline their processes and increase their earnings. When he’s not working, he loves to read in his comfy chair and play basketball with his two sons. 

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Archives, Global Trade Daily, News

Global Rape and Colza Seed Exports Surge Owing to Rising Supplies from Canada and the EU

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

In 2020, global exports of rape and colza seeds jumped by +23% y-o-y to 24M tonnes, reaching $10.7B in value terms. Canada holds a leading position in global exports, accounting for nearly half of its total volume. Last year, Canada boosted its rape and colza seed exports by +42% y-o-y., while Belgium, Lithuania, the Netherlands, Latvia, Poland and Romania also saw strong growth regarding the volume of supplies abroad. In 2020, the average rape and colza seed export price remained unchanged compared to those of 2019. 

Global Rape and Colza Seed Exports

In 2020, the amount of rape or colza seed exported worldwide skyrocketed to 24M tonnes, picking up by +23% compared with 2019. In value terms, rape and colza seed exports soared by +24.2% y-o-y to $10.7B (IndexBox estimates) in 2020.

In 2020, Canada (12M tonnes) was the main exporter of rape or colza seed, achieving 49% of total exports. Ukraine (2.4M tonnes) occupied the second position in the ranking, followed by the Netherlands (2.1M tonnes) and Australia (1.7M tonnes). All these countries together took approx. 26% share of total exports. The following exporters – Hungary (810K tonnes), Lithuania (675K tonnes), France (593K tonnes), Romania (555K tonnes), Latvia (501K tonnes), Belgium (492K tonnes) and Poland (407K tonnes) – together made up 17% of total exports.

Exports from Canada increased at an average annual rate of +42.5% in 2020. At the same time, Belgium, Lithuania, the Netherlands, Latvia, Poland and Romania also recorded significant increases in their rape or colza seed exports. By contrast, Hungary, France and Ukraine illustrated a downward trend over the same period.

In value terms, Canada ($4.7B) remains the largest rape and colza seed supplier worldwide, comprising 44% of global exports. The second position in the ranking was occupied by Ukraine ($1B), with a 9.4% share of global exports. It was followed by the Netherlands, with an 8.5% share.

The average rape and colza seed export price stood at $450 per tonne in 2020, remaining constant against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was France, while Canada was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Belgium, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

soft drinks
Archives, Global Trade Daily, News

American Soft Drink Imports Skyrocket to $2.8B

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

After a decade of continuous growth, American sugary soft drink imports reached $2.8B in 2020. In physical terms, imports rose by +8% y-o-y to 1.6M tonnes. Austria, Mexico and Switzerland were the largest suppliers of sugary soft drinks to the U.S., accounting for 60% of total American imports. The UK, Mexico and Italy featured the most intensive growth of shipments to the U.S. in 2020. In America, the average sugary soft drink import price amounted to $1,800 per tonne last year.

American Sugary Soft Drink Imports

In 2020, the amount of sugary soft drinks imported into the U.S. rose markedly to 1.6M tonnes, increasing by +8% against the previous year’s figure. In value terms, sugary soft drink imports rose from $2.7B to $2.8B (IndexBox estimates) in 2020.

Austria (363K tonnes), Mexico (349K tonnes) and Switzerland (221K tonnes) were the main suppliers of sugary soft drinks to the U.S., together accounting for 60% of total imports. These countries were followed by Canada, Italy, France and the UK, which together accounted for a further 28%.

In 2020, the most notable growth rates regarding shipments to the U.S. in physical terms were attained by the UK (+43% y-o-y), Mexico (+18% y-o-y) and Italy (+14% y-o-y). By contrast, the supplies from Switzerland (-11% y-o-y) and France (-5% y-o-y) were reduced.

In value terms, the largest sugary soft drink suppliers to the U.S. were Austria ($1.1B), Switzerland ($670M) and Mexico ($324M), with a combined 74% share of total imports. Canada, Italy, the UK and France lagged somewhat behind, together comprising a further 17%.

In 2020, the average sugary soft drink import price amounted to $1,800 per tonne, with a decrease of -4.6% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Switzerland ($3,026 per tonne), while the price for Canada ($886 per tonne) was amongst the lowest. In 2020, the UK attained the most notable rate of growth in terms of prices, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

quality control
Archives, Global Logistics, Global Trade Daily, Special Reports

Understanding the Importance of Quality Control in Manufacturing

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For manufacturers, there is a direct link between number of units sold and quality control. It may not be super clear and obvious that there is a link but nevertheless, the link exists, and it is solid: Consistent, well-made products boost revenues and customer retainment, while product defects drive existing customers and prospects into the eager arms of the competition.

The word “quality control” is often used loosely and can have different definitions for different people. The infographic below goes to the trouble of defining QC and disorientating itself from quality assurance, another necessary discipline in the world of manufacturing. The main point of quality control is its focus on preventing defective products from getting out in the world and reaching the consumer. Once you understand this simple (but sometimes elusive) definition of quality control, its connection to sales and the number of units sold becomes crystal clear.

The true cost of product defects is high on a number of fronts. If the end-user receives a defective product, a lot of bad and costly things can happen. If the product causes injury or death, just the cost of litigation can be enough to put even a large manufacturing organization out of business. And that’s ignoring the emotional toll of having one of your products hurt a person. If the manufacturer is lucky, the defects will be identified on the receiving dock, in which case the costs may be “limited” to a rejection, return and replacement.

On the flip side, high-quality standards help build a company’s reputation for quality. These high-quality standards can help attract prospects, generate referrals, earn reorders and allow the company to set higher prices. That is why QC is so important and should be emphasized early and often. For more on this, continue reaching below on how to improve your QC today.

 

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John Vogel brings over 38 years of experience in the Aerospace and Defense sector and leads the Quality function at Marotta Controls, Inc. As the VP of Quality, John is responsible for Quality Control, Quality Engineering, Quality Systems, Supplier Quality, Continuous Improvement and Calibration & Metrology.

gypsum
Archives, Global Trade Daily, News

Global Gypsum and Anhydrite Imports Shrink with Declined Purchases from the U.S. and India

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

Global gypsum and anhydrite imports fell from $991M in 2019 to $901M in 2020. The U.S., India, Japan, Indonesia and the UK constitute the largest importers of gypsum and anhydride worldwide. In 2020, these five countries saw significant drops in import volume. China, the Netherlands and Sweden were among the few countries that managed to increase their imports. In 2020, the average gypsum and anhydrite import price grew by +6% against the previous year.

Global Gypsum and Anhydrite Imports

In 2020, global gypsum and anhydrite imports fell to 30M tonnes, dropping by -14.2% on 2019. In value terms, gypsum and anhydrite imports dropped to $901M (IndexBox estimates) in 2020.

In 2020, the U.S. (6M tonnes), distantly followed by India (5.0M tonnes), Japan (2.4M tonnes), Indonesia (2.0M tonnes) and the UK (1.6M tonnes) were the key importers of gypsum and anhydrite, together generating 52% of total imports. The United Arab Emirates (1,326K tonnes), Bangladesh (1,108K tonnes), Canada (933K tonnes), Belgium (758K tonnes), South Korea (673K tonnes), Viet Nam (653K tonnes), Israel (571K tonnes) and China (556K tonnes) followed a long way behind the leaders.

The world’s largest importers, U.S. (-2% y-o-y), India (-6.3% y-o-y), Japan, Indonesia and the UK, saw significant drops in the import volume. By contrast, China, the Netherlands and Sweden managed to boost their purchases from abroad.

In value terms, the largest gypsum and anhydrite importing markets worldwide were the U.S. ($141M), India ($89M) and Japan ($86M), together comprising 35% of global imports. These countries were followed by Indonesia, the UK, Canada, Viet Nam, China, Belgium, South Korea, Bangladesh, the United Arab Emirates and Israel, which together accounted for a further 32%.

In 2020, the average gypsum and anhydrite import price amounted to $30 per tonne, increasing by +6% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was China ($50 per tonne), while the United Arab Emirates ($11 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform