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10 Technologies That Promise a More Sustainable Supply Chain

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Archives, Global Logistics, Global Trade Daily, International Trade

10 Technologies That Promise a More Sustainable Supply Chain

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Supply chains can often account for more than 90% of a company’s carbon footprint. Finding ways to reduce the carbon cost of moving goods and raw materials could help significantly cut down on the emissions businesses across the economy produce.

The growing demand for sustainable business practices has business leaders looking for ways to shrink company carbon footprints and environmental impacts.

Many new technologies from inside and outside the industry could soon transform the supply chain and help make it far more sustainable.

1. Biodegradable Packaging

Many packaging materials are not environmentally friendly. Plastics — often in materials like styrofoam — are common and can take thousands of years to break down. When they do, they can escape into the environment in the form of microplastics. These are microscopic plastic fragments that can cause a range of health problems in both wildlife and humans.

New sustainable packaging options made from materials like prawn shell chitin, agricultural waste, and beech tree pulp, provide the support that packages need and break down in normal environmental conditions, unlike plastic. The use of these materials can help reduce the long-term environmental impact that non-biodegradable packaging can have.

2. Electric Cars

Electric vehicles have the potential to transform logistics vehicle fleets and last-mile delivery. Already, these vehicles can help businesses sustainably handle last-mile delivery.

As EV infrastructure expands over the next few years, they’re likely to become even more practical, including for companies in rural areas, where EV infrastructure has traditionally been less robust.

3. E-Bikes

Decarbonizing last-mile delivery can be challenging. Electric vehicle fleets aren’t always practical, and the high cost of adopting all-new electric vehicles can be steep.

In dense cities, bike couriers can help reduce the carbon cost of last-mile delivery. E-bikes can significantly extend the range couriers can cover without generating carbon, while also speeding up deliveries completed by bike.

Because these bikes can be charged for as little as $0.50 in major cities, they can provide a valuable and cheap alternative to cars, mopeds, and similar transport options. If necessary, companies can retrofit e-bike batteries and motors onto existing company bikes, reducing the cost of adoption, as well.

While not a total replacement for fleet vehicles, e-bikes are a potential low-carbon delivery solution for logistics professionals in population-dense areas.

4. Hydrogen Aviation and Ship Fuel Cells

While battery technology is improving fast, it’s not practical in every case. Airplanes and cargo ships, for example, can’t support the size and weight of a battery needed to power the craft from port to port or airstrip to airstrip. Maritime and air shipping experts are trying to find a more sustainable fuel instead.

Pure hydrogen fuel produces no emissions when burned. Manufacturers can create it using a carbon-free production method, reversible electrolysis, that requires just electricity and water. Other viable methods include a solar production strategy that draws power from the sun and also produces no carbon emissions.

As these methods come into widespread use, it could become possible for logistics providers to stop using high-emissions fuels like aviation fuel and heavy fuel oil.

5. Electric and Hydrogen Semi-Trailer Trucks

Soon, semi-trucks powered by batteries and special hydrogen fuel cells may also help reshape how goods are moved worldwide.

Cutting-edge electric trucks have a range comparable to semi-trucks with conventional internal combustion engines, meaning the limited range of some EVs, which has slowed adoption in the past, may not always be a problem.

As electric vehicle infrastructure expands, it may quickly become practical for shippers to switch from conventional trucks to electric ones. This could significantly reduce one of the supply chain’s most significant sources of carbon emissions.

Hydrogen-fuel trucks offer similar benefits. Several hydrogen fuel stations for hydrogen trucks are already in the works in America and could soon provide the infrastructure needed to make hydrogen semi-trailers practical.

6. Demand Forecasting Algorithms

The pattern-finding abilities of AI make it an excellent tool for solving complex problems when vast amounts of data are available. With AI trained on sales data, for example, companies can create more accurate demand forecasts and build a better picture of what customers will want and when.

During times of market instability when future demand is particularly challenging to predict, these tools can help reduce supply-side waste and overproduction.

7. Driver Behavior Analysis

Modern telematics solutions can offer data that helps logistics companies significantly reduce the carbon impact of their fleet vehicles. For example, idling can have severe environmental impacts.

Devices monitoring driver behavior can detect whether a driver has left their vehicle idling and for how long. This system can reduce idling incidents, keep companies compliant with local anti-idling ordinances, and reduce the carbon impact of their fleet vehicles.

8. Route Optimization Algorithms

Other sustainable use-cases for telematics include route optimization tools that use live traffic data and can interface with business scheduling systems.

These tools optimize driver routes, ensuring vehicles are spending as little time as possible on the road. This technology can help reduce unnecessary driving, optimize scheduling, and cut down on company carbon emissions.

9. Blockchain

Blockchain, the digital ledger technology that powers cryptocurrencies, can significantly improve supply chain visibility and transparency.

The technology, which provides a reliable and difficult-to-manipulate digital record-generating tool, gives businesses the means they need to improve supply chain transparency and guarantee ethical sourcing practices.

With the secure, trustworthy transaction records stored on the blockchain, businesses have a better chance of knowing how goods supplied by third parties were sourced — and if sourcing was done sustainably or in a way that complements other shipping practices.

10. Exhaust Scrubbers

New technology also makes it easier to retrofit existing shipping equipment to reduce carbon emissions.

Exhaust scrubbers, for example, are becoming increasingly popular among cargo shippers. These scrubbers are used on cargo ships to reduce the sulfur emissions produced by heavy fuel oils and similar fuels. According to an estimate by Bloomberg NEF, 4,800 vessels could be equipped with these scrubbers by 2025.

How New Technology May Enable Supply Chain Sustainability

Because supply chains account for such a large share of business carbon emissions, logistics providers will play an essential role in the ongoing pivot to more sustainable business practices.

Advanced technology will likely be critical for supply chain managers wishing to make their operations more sustainable. Electric vehicles, e-bikes, hydrogen fuel, and bio-derived packaging could soon enable managers to reduce the environmental impact and carbon emissions of shipping.

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Archives, Global Trade Daily, News

U.S. Domestic Industry Files Anti-Circumvention Cases Against Three Countries Regarding Crystalline Silicon Photovoltaic Cells

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The Petitioners representing the U.S. domestic industry filed new petitions with the U.S. Department of Commerce (“Commerce”) against imports from three countries, Thailand, Vietnam, and Malaysia, alleging that certain Chinese producers are diverting Chinese-origin components through Thailand to undergo minor processing to complete Crystalline Silicon Photovoltaic (“CSPV”) cells and modules subject to the Orders and subsequently to export the merchandise to the United States to avoid AD/CVD duties. The companies that were named in the circumvention submissions were:

Thailand

1. Canadian Solar Manufacturing (Thailand) Co., Ltd. (“Canadian Solar Thailand”), a subsidiary of Canadian Solar Inc. (“Canadian Solar”);

2. Trina Solar Science & Technology (Thailand) Co., Ltd. (“Trina Solar Thailand”), a subsidiary of Trina Solar Co., Ltd;

3. Talesun Solar Technologies Thailand or Talesun Technologies (Thailand) Co., Ltd.; and

4. Astroenergy Solar Thailand Co., Ltd (“Astroenergy Thailand”).

Vietnam

1. Trina Solar (Vietnam) Science & Technology Co., Ltd. (“Trina Solar Vietnam”);

2. Canadian Solar Manufacturing (Vietnam) Co., Ltd. (“Canadian Solar Vietnam”);

3. China Sunergy Co., Ltd. in Vietnam (“CSUN Vietnam”);

4. Boviet Solar Technology (Vietnam) Co., Ltd. or Boviet Solar Technology Co., Ltd. (“Boviet Solar”);

5. GCL System Integration Technology (Vietnam) Co. Ltd. (“GCL-Si Vietnam”);

6. Vina Cell Technology Company Limited and Vina Solar Technology Company Limited; and

7. Jinko Solar (Vietnam) Co., Ltd.

Malaysia

1. Jinko Solar Technology Sdn. Bhd. (“Jinko Solar Malaysia”);

2. LONGi (Kuching) Sdn. Bhd.; and

3. JA Solar (Malaysia) Co., Ltd. or JA Solar Malaysia Sdn. Bhd.

While the requests are hundreds of pages in length, the gist of the allegations against each country is that the operations being performed in each of these countries are minor or insignificant, and the products being exported from each of the three countries are subject to the antidumping and countervailing duty order on CSPV cells and modules from China.

Within 45 days of the filing (which was August 16, 2021) the rules of Commerce require it to either make a final determination or initiate a full investigation. The 45-day deadline is September 30, 2021. It is very likely that Commerce will conduct a full review of these circumvention allegations, in light of their complexity and seriousness.

Of great importance to importers here is that if there is a final determination that there has been circumvention, the entries on or after the date of the initiation of the scope inquiry will be subject to Chinese rates. Thus, for imports made no later than September 30, 2021, importers could find themselves subject to the high Chinese rates. At the moment, it is very difficult for importers to know the likelihood of whether those Chinese rates will be applied, because the preliminary and final determinations of Commerce are still several months away.

The final determination in an anticircumvention ruling is to be issued normally within 300 days from the date of initiation, according to the Commerce rules. Before that time Commerce will issue a preliminary determination and at that time importers will have a better idea of the likelihood that duties will be applied to those products allegedly circumventing the order.

_________________________________________________________________________

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

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

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3pls, Archives, Global Logistics, Global Trade Daily

THE SOLUTION TO MITIGATING RISKS FOR TODAY’S 3PL COMES DOWN TO DATA

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Gaps in operations are not biased. Whether you are a warehouse manager navigating scheduling oversights or a fleet manager solving the next best approach to reducing costs, gaps in operations within the global logistics arena are inevitable. The real concern is how the modern-day 3PL provider can successfully mitigate risks while minimizing common gaps before they become a critical problem. 

Until one can jump to the list of solutions ranging from technology applications to hybrid work models, the most common (and possibly least talked about) gaps must be identified. Taking it a step further, 3PL providers should have a solid understanding of the why behind the what. In other words, they should ask themselves: Why are these gaps present within our operations and can they be resolved? Are these gaps common within the industry or are they unique to my company?

“One of the bigger gaps in the industry is the availability of timely and accurate data back to the shippers and to the community,” states Jason Carl, vice president of 4PL Solutions at BridgeNet Solutions. “3PLs are sitting on a wealth of data and information, and the ability to harness that effectively has always been a gap from my perspective. Delivering standardized timely information and data makes all the difference for a shipper in today’s environment.”

Carl has more than 15 years of experience in the logistics arena, ranging from ocean exports to operations. He originally started his career with Evergreen Line before moving on to BDP International for 13 years, managing operations for several multinational clients. He moved to BridgeNet two years ago to head the 4PL product.

BridgeNet Solutions, a wholly-owned subsidiary of BDP, provides sourcing, outsource sourcing procurement and managed transportation services focusing primarily on data analytics for more effective supply chain management.

BridgeNet’s cloud-based data solution, Xonar, is the company’s analytics and execution platform based on a foundation of accurate data collection combined with a robust analytics layer. Xonar enables BridgeNet to effectively collect and share critical information from shipper ERP systems, 3PL providers and freight payment companies. Carl cites this solution and the above capabilities as a game-changer for the company among competitors.

“Oftentimes what you find is that providers offering these solutions could be largely just software as a service or a technology company,” he explains. “At BridgeNet, we extend both the technology and the execution components to our customers, ensuring they can rely on an excellent integration hub paired with customizable technology based on the customer’s needs. We also offer a network of control tower operations based in Asia, Europe and the Americas to oversee that and to orchestrate the flow of information that’s moving through Xonar on a day-to-day basis.”

To be successful at identifying and eliminating common gaps in processes, the provider must consider the quality of the information coming in and going out. It is critical the provider understands where this information could be compromised–or even worse, completely missed. 

“3PLs need to understand the why,” Carl says. “Not just at the strategic level but also down to the desk level. It enables better decision-making on a day-to-day basis that really benefits shippers in ways that are often overlooked. The quality of the data can be a game-changer for planning processes and for decision-making overall. There is an increased recognition of that at least in the conversations I’m having.”

Beyond closing gaps in operations and day-to-day processes, Carl emphasizes the importance of looking at the big picture rather than just the result, citing innovative technology as a distraction for what is really going on layers deep within a data solution. 

“If the underlying data is not high quality, not standardized, not tightly controlled, then it’s not going to yield the results that providers want to achieve from that piece of technology. The value of that underlying information cannot be discounted. Before you go on the tech journey, providers should focus on the information that is going to fuel operations. This is where 4PLs can step in.”

As for the role of the 4PL provider, they are part of the bigger picture of where your data is coming from and what it all means. Data translation is equally as important as data collection. If a provider cannot identify the value from the data, the role of analytics becomes a moot point. That’s why Carl emphasizes the need to look and think outside of the box for solutions that are not only more cost-effective but add significant value to client needs. 

“4PLs can act as a translator or the intermediary to help provide data-driven insights to shippers by standardizing information from a multitude of 3PLs and then translate shipper’s needs and strategies for actionable change from the 3PL,” he says. “This bridge between the two entities can be a great help but it is not always the right fit for every shipper or for every supply chain. There are many situations where, now more than ever, a 4PL provider can provide a lot of value and support for 3PL operations and processes.”

Whether it is a pandemic or random disruption (think Suez Canal), the conversation of eliminating gaps in operations would be incomplete without addressing how the logistics industry has shifted looking back at the last year and a half. Buzzwords such as “agile” and “adaptable” might very well be accurate, but in what ways are 3PL providers being challenged to maximize their position in a competitive market? Carl points to letting go of the past as many companies still utilize lessons learned to affirm the success of the future.

“Gone are the days where the 3PL can rest on proverbial laurels and be complacent based on past success and relationships,” he warns. “The past 18 months have proven this. The existing network that 3PLs may have been operating for a customer for many years may no longer be sufficient in 2021. The needs are going to change, and it’s important that 3PLs are responding effectively to compete and be good partners for the shipping community.”

________________________________________________________________

Jason Carl is vice president of 4PL Solutions at BridgeNet, a BDP International company, where he oversees the development, performance and operations of the 4PL product and global control tower teams. He has more than 15 years’ experience helping customers improve and optimize complex supply chains through technology and process optimization. Carl holds an undergraduate degree in Economics from Austin College in Sherman, Texas, and an MBA in Strategy from Temple University’s Fox School of Business. He can be reached at jcarl@bridgenetsolutions.com. 

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Archives, Global Trade Daily, News

China Significantly Expands Epoxy Resin Imports

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IndexBox has just published a new report: ‘China – Epoxide Resins In Primary Forms – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

In 2020, imports of epoxide resins in primary forms into China jumped by +40% y-o-y to 405K tonnes, reaching $1.3B in value terms. Taiwan, South Korea, and the U.S. remain the key epoxy resin suppliers to China, with a combined 76%-share of the total imports. Thailand, the Netherlands, South Korea, the U.S., Taiwan, and Germany saw the highest spikes in exports to China. The average epoxy resin import price in China dropped by -10% y-o-y last year. 

Epoxide Resin Imports into China

In 2020, imports of epoxide resins in primary forms into China soared to 405K tonnes, picking up by +40% on the previous year’s figure. In value terms, epoxide resin imports surged by +26.1% y-o-y to $1.3B (IndexBox estimates) in 2020.

Taiwan (Chinese) (147K tonnes), South Korea (116K tonnes) and the U.S. (44K tonnes) were the main suppliers of epoxide resins to China, with a combined 76% share of total Chinese imports. These countries were followed by Germany, Thailand, Japan and the Netherlands, which together accounted for a further 19%.

In 2020, the most notable growth rate in terms of purchases, amongst the main suppliers, was attained by Thailand (+131% y-o-y), the Netherlands (+77% y-o-y), South Korea (+63% y-o-y), the U.S. (+41% y-o-y),Taiwan (+33% y-o-y) and Germany (+24% y-o-y). Imports from Japan reduced by -4% y-o-y during this period.

In value terms, Taiwan (Chinese) ($418M), South Korea ($283M) and the U.S. ($135M) appeared to be the largest epoxide resin suppliers to China, together comprising 67% of total imports. Japan, Germany, Thailand and the Netherlands lagged somewhat behind, together comprising a further 27%.

In 2020, the average epoxy resin import price amounted to $3,100 per tonne, waning by -10% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Japan ($8,473 per tonne), while the price for the Netherlands ($2,353 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Japan, while the prices for the other major suppliers experienced more modest pace of growth.

Source: IndexBox Platform

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Archives, Global Trade Daily, News

Global Lentil Imports Soar to $1.7B

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

Global lentil imports picked up by +25% y-o-y to $1.7B in 2020. India, Turkey and Pakistan remain the largest lentil importers worldwide, accounting for 37% of global import volume. Last year, Egypt, Turkey, Pakistan, Italy, Germany, India, Canada and the U.S. recorded the highest increases in the import volume of lentils. The average lentil import price rose by +19% y-o-y in 2020. Canada and Australia keep leading positions in global lentil exports. 

Global Lentil Imports by Country

In 2020, global imports of lentils stood at 2.9M tonnes, increasing by +4.9% against the previous year’s figure. In value terms, lentil imports skyrocketed +25.1% y-o-y to $1.7B (IndexBox estimates) in 2020.

India represented the major importing country with an import of about 1.1M tonnes, which resulted in 37% of total imports. Turkey (630K tonnes) held the second position in the ranking, distantly followed by Pakistan (194K tonnes) and Sri Lanka (178K tonnes). All these countries together held approx. 35% share of total imports. Canada (103K tonnes), Egypt (86K tonnes), the U.S. (72K tonnes), Italy (62K tonnes), Spain (59K tonnes) and Germany (43K tonnes) followed a long way behind the leaders.

In 2020, lentil imports in Egypt grew nearly twofold, while in Turkey, Pakistan, and Italy, the annual growth rate overcame the 50% figure; Germany and India also posted tangible double-digit growth.

In value terms, the largest lentil importers worldwide were India ($581M), Turkey ($312M) and Pakistan ($104M), with a combined 59% share of global imports.

In 2020, the average lentil import price amounted to $591 per tonne, growing by +19% 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 Germany, while Turkey 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.

Major Suppliers of Lentils

Canada was the key exporter of lentils in the world, with the volume of exports resulting at 3.1M tonnes, which was near 67% of total exports in 2020. It was distantly followed by Australia (661K tonnes), Turkey (406K tonnes) and the U.S. (329K tonnes), together making up a 30% share of total exports.

In value terms, Canada ($1.7B) remains the largest lentil supplier worldwide, comprising 63% of global exports. The second position in the ranking was occupied by Australia ($349M), with a 13% share of global exports. It was followed by Turkey, with a 12% share.

Source: IndexBox Platform

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Archives, Commentary, Global Trade Daily

Boosting Checkout Conversion Rates: Tips for Businesses Chasing E-Commerce Success

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A customer clicking “pay” means the sale is pretty much a done deal, right? Not so fast. What if that final step isn’t actually a leap towards revenue? What if that transaction stumbles at a final hurdle? In this increasingly global landscape, the lack of payment method options is causing exactly that misstep for e-commerce players.

The general theory is that e-tailers expect checkout conversion rates greater than 80% once a consumer has selected the product or service, entered all their personal details, remained on the site, and then try and pay. In reality, nearly 50% of online shoppers say they will abandon a purchase at checkout if their preferred option is not available. This means that the actual conversion – and therefore revenue rate – is far less than 80%.

Amid a pandemic-induced shift to online transactions, consumers now have a stronger sense of what they want in terms of ease-of-use, customer experience, communications, site aesthetics, fulfillment, and everything in between. Consumers expect their e-commerce experience to have been tailored specifically for them.

Accessibility to locally preferred payment methods (LPMs) forms is just one component of this, albeit an important one. E-tailers, as well as payment companies servicing e-tailers, need to ensure that all aspects impacting the customer experience are optimized if they are to truly capitalize on the global e-commerce opportunity in front of them.

The conversion rate conundrum

While it is clear that the user experience is having a direct impact on cart abandonment, it seems that this isn’t translating into action. According to statistics, the global average cart abandonment rates are between 60% and 80%. In fact, companies looking to sell to consumers from different regions across the globe can miss out on 77% of their potential business if they don’t accept LPMs, as more than three-quarters of all global e-commerce purchases are made using them.

At first glance, this is obviously a concerning rate of abandonment. But in the context of the wider e-commerce landscape, it’s potentially disastrous. When COVID-19 hit, e-commerce in the US alone experienced 10 years’ worth of growth in just three months. In Europe e-commerce revenues saw an increase of US$71bn year-on-year, leading to predictions that 2021 would see another revenue jump of 30%. That’s not to mention Asia, which now accounts for nearly 60% of the world’s retail sales online.

With 53% of people surveyed by UNCTAD saying that they intend to continue shopping online after the pandemic ends, this initial shift is now a long-term proposition and those initially lost conversions i.e. sales, reflect the possibility of a much longer-term problem – especially if your competitors have reacted quicker to these trends and demands.

How can businesses increase sales in any market?

To begin with, there needs to be an intention to understand and acknowledge the new consumer climate and what they expect in the post-pandemic world. From a global perspective, LPMs form a large component of this demand.

However, it is critical to keep your global offering locally relevant. For example – don’t offer US preferred payment methods to Asian customers or UK preferred payment methods to Indian customers. Ensure that an LPM is relevant for the market and customer base and where relevant, give them a couple of choices. More than that, showcase those accepted payment types. Old payment method logos could lead to mistrust. And on that same issue of ‘trust’, instilling confidence early on by informing customers how they can pay before they actually reach the payment page, will lead to increased conversion and basket sizes.

Additional tips for fostering a better consumer relationship and ensuring improved conversion rates include aligning the language on the payment method page to the language your customer has been shopping in; providing small information bubbles for each payment method option so customers can make a more informed choice; and make sure to show your trading name on the payment method, as customers won’t necessarily be familiar with your legal name.

Plugging in and partnering, not going it alone

These small and simple gestures may seem insignificant, but they can make or break trust with a consumer. However, what is not simple, is the level of digital transformation required to bring these value-add propositions to the table. With ‘transformation’ being the keyword.

Integrating – and then managing – local payment methods are costly, complex, and time-consuming – often taking as long as a year and can cost more than $1 million to integrate a single LPM to existing infrastructure.

Embedding the tips highlighted above requires a quality, multi-faceted infrastructure. Each LPM brings with it unique funds flow, compounded by numerous operational, regulatory, and legal complexities. That is why many brands are leveraging partnerships to expedite their speed to market and reduce costs versus building in-house.

By outsourcing a local payments infrastructure, businesses can integrate LPMs faster, which addresses the customer’s needs more rapidly hence increasing revenue and could also provide a competitive advantage. Partnering with a dedicated provider of LPMs will also enable deeper and more expansive access to consumers in different markets; the option of the provider managing the entire funds flow for each LPM on behalf of the business tapping into it, and additional monitoring and optimization services to get the best conversion rates for each LPM.

Businesses that leverage a local payments infrastructure can rapidly and cost-effectively tap into the global audience that awaits.

By putting this service into your basket, consumers are more likely to pay for what they’ve put in theirs.

_____________________________________________________________

Claire Gates is the Chief Commercial Officer at PPRO

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Archives, Global Trade Daily, News

Durum’s Share in the European Wheat Imports Spikes

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

Imports of durum wheat in the EU surged by +25% y-o-y to 6.1M tonnes, reaching $1.7B in 2020. Over the last year, the share of durum supplies by volume in the total European wheat imports increased from 15.4% to 19.2%. Italy represents the largest importer of durum wheat in the EU. Belgium emerged as the fastest-growing European importer of durum wheat in 2020. The total imports of all types of wheat estimated at 32M tonnes or $7.4B in value terms.

European Imports of Durum Wheat

In 2020, imports of durum wheat in the EU surged to 6.1M tonnes, with an increase of +25% against the previous year’s figure. In value terms, durum wheat imports soared by +29.0% y-o-y to $1.7B in 2020. Over the last year, the share of the durum wheat supplies (by volume) in the total European wheat imports increased from 15.4% to 19.2%.

Italy represented the major importing country with an import of around 3.2M tonnes, which amounted to 51% of total imports. Belgium (866K tonnes) occupied the second position in the ranking, followed by Spain (498K tonnes) and Germany (372K tonnes). All these countries together occupied approx. 28% share of total imports. Poland (264K tonnes), the Netherlands (263K tonnes), Portugal (145K tonnes), Greece (103K tonnes) and Luxembourg (96K tonnes) followed a long way behind the leaders.

Imports into Italy in volume terms increased by +27.8% in 2020. Belgium (+163.7%), Poland (+105.5%), Portugal (+51.0%), Greece (+7.6%) and Luxembourg (+5.5%) displayed positive paces of growth. Moreover, Belgium emerged as the fastest-growing importer imported in the EUin 2020. By contrast, Germany (-3.7%), Spain (-8.3%) and the Netherlands (-30.5%) illustrated a downward trend over the same period.

In value terms, Italy ($950M) constitutes the largest market for imported durum wheat in the EU, comprising 55% of total imports. The second position in the ranking was occupied by Belgium ($200M), with a 12% share of total imports. It was followed by Spain, with a 7.7% share.

In 2020, the durum wheat import price in the EU amounted to $282 per tonne, increasing by 3.5% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Germany ($319 per tonne) and Luxembourg ($304 per tonne), while Poland ($214 per tonne) and Belgium ($230 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Total European Wheat Imports

In 2020, approx. 32M tonnes of wheat were imported in the EU; flattening at the previous year’s figure. In value terms, wheat imports rose by +2.2% y-o-y to $7.4B (IndexBox estimates) in 2020.

In 2020, Italy (8M tonnes), distantly followed by the Netherlands (4.4M tonnes), Spain (4.2M tonnes), Germany (4M tonnes) and Belgium (3.8M tonnes) were the largest importers of wheat, together comprising 77% of total imports. Romania (1.2M tonnes), Portugal (1.2M tonnes), Austria (1.2M tonnes), Greece (0.9M tonnes), Poland (0.9M tonnes) and Latvia (0.7M tonnes) followed a long way behind the leaders.

In value terms, Italy ($2B) constitutes the largest market for imported wheat in the EU, comprising 28% of total imports. The second position in the ranking was occupied by the Netherlands ($962M), with a 13% share of total imports. It was followed by Spain, with a 13% share.

The wheat import price in the EU stood at $233 per tonne in 2020, picking up by +2.9% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Italy ($256 per tonne) and Portugal ($243 per tonne), while Poland ($199 per tonne) and Austria ($207 per tonne) were amongst the lowest.

Source: IndexBox Platform

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Archives, Global Trade Daily, News

New Regulations to Boost Investments into Battery Recycling in the EU

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

The battery market in the EU is expanding on the heels of growth in the electric vehicle and renewable energy industries. In July 2021, the EU instituted new regulations that force battery producers to diminish greenhouse gas emissions throughout all stages of the product lifecycle. Increases in mandatory levels of recovered batteries and the share of recycled materials used in new ones will lead to a critical need for additional recycling capabilities and could drive an investment boom in the market.

Key Trends and Insights

The Global Battery Alliance projects that by 2030 worldwide demand for batteries will increase 14 fold due to the widespread implementation of electric transport methods and deployment in electricity grids. The EU may account for 17% of global demand. In 2030 demand for lithium batteries is forecast to surpass the current amount by a factor of 18, cobalt by 5 and in 2050 by a factor of 60 and 15 respectively.

In July 2021, the EU implemented new regulations to ensure safe use, recycling and disposal of batteries. These regulations could lead to serious changes in the accumulator market. From July 1, 2024, producers selling batteries in the European market will have to provide declarations indicating the carbon footprint created throughout production. Then from July 1, 2027, they must comply with maximum lifecycle carbon footprint thresholds for their products. This will push expenses for producers up as they implement technologies to reduce greenhouse gases. To help companies stay competitive, the new regulations outline developing a plan where governments are obligated to purchase products manufactured with green technologies.

In Europe, over 1.9 million tonnes of waste batteries are generated annually. The current level of recycled materials in the EU is significantly low: only 12% of aluminium, 22% of cobalt, 8% of manganese, and 16% of nickel used within the EU is recycled. Currently, almost no lithium is recovered in the EU because it is deemed to not be cost-effective.

In accordance with the new regulations, targets are set for recovering metals from waste batteries at 90% for cobalt, copper, lead, and nickel, and 35% for lithium by the end of 2025. By 2030 the recovery level should reach 95% for cobalt, copper, lead and nickel, and 70% for lithium. This will require a significant increase in capacity to recycle batteries and thus provide new opportunities for investors. The sector for lithium is one the fastest growing areas and is forecast to expand by 30% annually, experiencing the highest level of demand for recycling capacity.

Electric Accumulator Imports in the EU

In 2020, approx. 1.2B units of electric accumulators were imported in the EU; with a decrease of -8.1% against the previous year’s figure. In value terms, accumulator imports soared to $23.1B (IndexBox estimates) in 2020.

Germany represented the largest importing country with an import of about 386M units, which finished at 33% of total imports. It was distantly followed by Poland (199M units), Hungary (168M units), the Netherlands (96M units), France (65M units) and the Czech Republic (58M units), together achieving a 49% share of total imports. Italy (37M units) followed a long way behind the leaders.

In value terms, Germany ($7.5B) constitutes the largest market for imported electric accumulators in the EU, comprising 32% of total imports. The second position in the ranking was occupied by France ($2.4B), with a 11% share of total imports. It was followed by the Netherlands, with a 6.8% share.

In 2020, the average annual rate of growth in terms of value in Germany totaled +48.6%. The remaining importing countries recorded the following average annual rates of imports growth: France (+1.6% per year) and the Netherlands (+3.4% per year).

The accumulator import price in the EU stood at $20 per unit in 2020, growing by 43% against the previous year. In 2020, the most notable rate of growth in terms of prices was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

European Imports of Primary Cells and Primary Batteries

Germany represented the major importing country with an import of around 3.1B units, which amounted to 33% of total imports. It was distantly followed by Poland (1,470M units), Belgium (743M units), Romania (624M units), France (605M units), the Netherlands (495M units), Italy (474M units) and Spain (452M units), together constituting a 52% share of total imports.

In value terms, Germany ($534M) constitutes the largest market for imported primary cells and primary batteries in the European Union, comprising 23% of total imports. The second position in the ranking was occupied by France ($238M), with a 10% share of total imports. It was followed by Poland, with a 10% share.

In Germany, the value of battery imports declined by an average annual rate of -2.3% in 2020. The remaining importing countries recorded the following average annual rates of imports growth: France (+10.3% per year) and Poland (+22.0% per year).

Source: IndexBox Platform

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Archives, Global Logistics, Global Trade Daily, Special Reports

Get Ready for the Holidays 2021

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In the heat of summer, the holiday shopping season can feel like it’s a long way away. Experienced e-commerce merchants know better. Simply put, capitalizing on the holiday season requires a lot of effort, and a lot of advanced planning. If you want to meet those seasonal quotas, you’ll want to start strategizing right away.

So, what steps can you take right now to position your e-commerce brand for seasonal success?

1) Develop a seasonal sales plan. 

First and foremost, you’ll want to create a basic plan. What are your goals for holiday sales? And, what are some specific sales, promotions, or deals that you want to offer your customers in order to help you achieve those goals? Start finalizing sales and specials now.

2) Start developing seasonal graphics.

To help your customers get into the holiday spirit, you may wish to develop some special graphics to use on your homepage and on social media. Developing these graphics may take a little time, so don’t wait until the last minute! Start generating your marketing collateral today.

3) Identify top sellers.

Hopefully, you have some data available to show you which products were your bestsellers during last year’s holiday shopping season (and in the weeks leading up to the holiday shopping season). Since these are items you know to be popular among seasonal shoppers, plan to showcase or highlight them again this year. (You may also wish to spotlight some of these items in your sales and promotional deals.)

4) Consider gift cards.

Do you provide gift cards to your e-commerce store? Creative gift card ideas tend to be popular around the holiday seasons, so if you don’t already offer them, you may wish to consider launching and highlighting them for Christmas shoppers.

5) Plan gift sets and bundles.

One of the best ways for you to upsell is to bundle items that go well together naturally; for example, you might offer an incentive to buy a sweatshirt and a toboggan together, perhaps branding it as a “winter wear” pack.

6) Plan an email marketing campaign.

Email marketing is one of the best ways to drum up interest in seasonal sales. Start drafting a string of emails right now, including some teasers, deal/promo announcements, follow-ups, “last chance to get it before Christmas” emails, and so forth. Abandoned cart emails can also be effective.

7) Start thinking about remarketing.  

During the holidays, one of the most effective forms of marketing tends to be remarketing. This will allow you to keep your e-commerce brand top-of-mind among those who visit the site without completing a purchase. You can also use remarketing to reach out to customers who select a product, then abandon their cart. Again, developing a good remarketing plan can take some time, so we’d recommend that you begin the planning process now.

8) Create gift guides.

Another way to upsell during the holiday season is to create gift guides. These may be blog posts, infographics, or special product category pages on your website, where you can put together items that are similar in price, in style. The goal is to make it as easy as possible for your customers to find the perfect gifts for their friends and loved ones.

9) Design posts for Instagram.

You’ll want to leverage the powers of social commerce to hit your holiday sales goals. Start by putting together some Instagram posts that you can use to drive traffic to your e-commerce platform.

10) Make sure your website is ready.

During the stressful holiday shopping season, the last thing you want is for your customers to have a difficult time completing their orders. Be sure your website is optimized to provide a positive user experience. Test and verify that it’s optimized for mobile use, that it loads quickly, that there are no broken links, and that there are clear calls to action throughout your copy.

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Mark Kapczynski is the Chief Marketing Officer of Gooten, a globally distributed company that operates a smart supply chain for brands and retailers that are looking to utilize print-on-demand manufacturing to transform the way they do business.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

VERY EXCITING TIMES FOR THE PORT OF BALTIMORE

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The Port of Baltimore continues expansion efforts following the completion of successful dredging operations for a second 50-foot-deep container berth at its Seagirt Marine Terminal on April 20. 

This project—supported by a partnership between the Maryland Department of Transportation Maryland Port Administration (MDOT MPA) and Ports America Chesapeake—started in January and will allow the simultaneous handling of two ultra-large ships. 

The 50-foot berth paired with the Howard Street Terminal expansion project will not only increase business opportunities but also grow the region’s workforce, adding more value to the $122.1 million investment. Of this amount, $105 million is from Ports America, $10.5 million from the state, and $6.6 million in federal funding.

The second, deep-container berth project was spearheaded and completed by Corman Kokosing of Annapolis Junction with the help of two dredges—Koko V and Koko VI. Additionally, more than 465,000 cubic yards of sediment were successfully removed by the company’s SN3 unloader barge for reuse in land restoration and more. With this new addition, the port announced the addition of four neo-Panamax cranes to arrive and be operational later this year at Seagirt.

“The Port of Baltimore and its skilled workforce have always played a key role in supporting Maryland’s economy and keeping the state’s supply chain open and reliable,” MDOT Secretary Greg Slater said. “Now, together with our public and private partners, we’re seeing the future of the port take shape. Additional berth capacity and the ability to move cargo on double-stacked rail cars with the Howard Street Tunnel expansion will attract new and expanded business to the port, boost revenue, grow jobs and lead the way in Maryland’s economic recovery.”

The expansion of the region’s Howard Street Terminal aims to improve capacity along the East Coast’s rail lines from Baltimore, pending the final approval by the National Environmental Policy Act. Construction at the 126-year-old terminal is projected to begin at the end of 2021 and is supported by public-private investments between the federal government, Maryland, CSX and others. These developments continue supporting the region’s workforce while increasing state tax revenue and funds for the Transportation Trust Fund.

“We’re moving forward in the Port of Baltimore,” said MDOT MPA Executive Director William P. Doyle. “We appreciate the on-time and on-budget dredging work completed by Maryland-based Corman Kokosing, a great U.S.-flag dredging and marine construction operator. This summer, we’ll welcome four new neo-Panamax cranes and later this year, we’ll break ground on the Howard Street Tunnel project, giving the port and CSX double-stack capability north, south and all the way out to Chicago. These are very exciting times for the Port of Baltimore.”