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China’s Sulphur Imports Rebound After Last Year’s Deep Drop

sulphur

China’s Sulphur Imports Rebound After Last Year’s Deep Drop

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

China leads in global sulphur imports, with a 28%-share of the total supplies. This year, Chinese sulphur purchases from abroad have shown a sign of recovery after a deep drop last year. In the first four months of 2021, Chinese imports accounted for $455M against $164M in the same period of 2020. Chinese sulphur purchases fell from $1.3B in 2019 to $0.6B in 2020. The United Arab Emirates, Saudi Arabia and Iran constitute the largest suppliers to China, with a 49%-share of total import value.

Chinese Sulphur Imports 

China remains the largest sulphur importer worldwide, accounting for 28% of the total supplies. Over the first four months of 2021, Chinese sulphur imports totaled $455M against $164M of the same period of 2019.

In 2020, imports of sulphur into China shrank rapidly to 8.5M tonnes, dropping by -27.2% compared with the year before. In value terms, sulphur imports reduced sharply to $604M (IndexBox estimates) in 2020.

The United Arab Emirates (2M tonnes), South Korea (1.1M tonnes) and Saudi Arabia (962K tonnes) were the main suppliers of sulphur to China in 2020, with a combined 47% share of total imports. Iran, Japan, India, Qatar and Russia lagged somewhat behind, together accounting for a further 38%.

In value terms, the United Arab Emirates ($156M) constituted the largest supplier of sulphur to China, comprising 26% of total imports. The second position in the ranking was occupied by Saudi Arabia ($75M), with a 12% share of total imports. It was followed by Iran, with an 11% share.

In 2020, the average annual growth rate of value from the United Arab Emirates amounted to -33.7%. Supplies from Saudi Arabia (-61.1% per year) and Iran (-51.0% per year) also fell tangibly.

In 2020, the average sulphur import price amounted to $71 per tonne, declining by -36.7% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Qatar ($82 per tonne), while the price by South Korea ($50 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by the United Arab Emirates, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

waffle

Americans are Eating More Waffles: Imports Peak Near Over $600M

IndexBox has just published a new report: ‘U.S. – Waffles And Wafers Without Chocolate – Market Analysis, Forecast, Size, Trends, And Insights’. Here is a summary of the report’s key findings.

American waffle and wafer imports reached $598M, the highest level ever. In physical terms, imports rose by +5.9% y-o-y to 123K tonnes in 2020. Canada remains the largest supplier of waffles and wafers to the U.S., comprising 55% of American import volume. Italy, Belgium, Turkey, Costa Rica, Austria and Mexico have boosted their exports to the U.S. In 2020, the average waffle and wafer import price amounted to $4,879 per tonne, which was 4.5% down the figures of 2019.


American Imports of Waffles and Wafers

Waffle and wafer imports into the U.S. amounted to 123K tonnes in 2020, increasing by +5.9% on the year before. In value terms, waffle and wafer imports rose by +1.2% y-o-y to $598M (IndexBox estimates) in 2020.

In 2020, Canada (67K tonnes) constituted the largest waffle and wafer supplier to the U.S., with a 55% share of total imports. Moreover, waffle and wafer imports from Canada exceeded the figures recorded by the second-largest supplier, Italy (8.1K tonnes), eightfold. The third position in this ranking was occupied by Mexico (6.9K tonnes), with a 5.6% share.

In value terms, Canada ($346M) constituted the largest supplier of waffles and wafers to the U.S., comprising 58% of total imports. The second position in the ranking was occupied by Italy ($59M), with a 9.8% share of total imports. It was followed by Belgium, with a 5.1% share.

In 2020, the average annual rate of growth in terms of value from Canada amounted to -5.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+26.2% per year) and Belgium (+21.4% per year). Among other suppliers, Turkey, Costa Rica, Austria and Mexico have also increased their exports to the U.S. significantly.

In 2020, the average waffle and wafer import price amounted to $4,879 per tonne, shrinking by -4.5% 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 Germany, while the price for Colombia was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Turkey, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform Recommended

shippers

Dear Shippers, It’s Time for Creativity

To offset many of the problems we are encountering today ― inflationary pressures, port delays and labor shortages ― shippers must think and act differently to ensure resilience. To be successful, leaders must take a new, more creative approach to minimize today’s adversities to increase revenues. Here are some new ways companies are successfully mitigating the plethora of challenges facing global trade today:

1. Creativity Within Modes and Port Selection: Presently, more than 100 container ships await dock space at the Los Angeles and Long Beach ports1, and the World Container Index price for 40 ft. containers stands at $9,669.472, 276% higher than a year ago. Shippers are not only struggling to secure capacity due to port inefficiencies but are paying premium prices even when they can secure containers. Once reserving container space, shippers then have to deal with long lead times. The door-to-door transit time for a container from China to Chicago is now 73 days versus 35 days in pre-pandemic times.

Minimizing the impact on your organization will require teams to think more creatively and collaboratively. For example, in the past, when Coca-Cola could not supply their production facilities due to limited vessel space, they refused to accept the current situation as their only option. Instead, their procurement and supply chain teams collaborated to leverage a nontraditional method of shipping. They decided to ship their manufacturing materials via bulk vessels typically used to ship dry cargo3. Coca-Cola safely shipped their products by securing the materials using plastic wrap and unloading at noncongested ports to avoid excessive demurrage fees being levied on shippers. Their priority was to keep the product lines running, and they accomplished it by actively seeking out alternatives.

Organizations need to think more broadly and explore the feasibility of using all available options, such as Coca-Cola did. Also, they must consider avoiding the West Coast ports whenever possible, as other ports, such as those on the East Coast, are currently less congested.

2. Seek Unconventional Partnerships: The boost in e-commerce sales and the growing driver shortage have negatively affected domestic trucking capacity. The result is like what we see in ocean shipping: premium prices and increased lead times. In pre-pandemic times, consumers took advantage of quick and reliable e-commerce delivery channels made popular by the likes of Amazon. Now, however, they are left hoping their products arrive within their expected delivery window, as shipping delays continue to become more common.

Understanding that customers have an insatiable appetite for fast and reliable delivery, Home Depot found a way to offer added convenience to its e-commerce business. Home Depot will become the first retail client in Walmart’s new delivery-as-a-service business called GoLocal. According to a Home Depot spokesperson, by leveraging Walmart’s existing delivery network, Home Depot will offer same-day and next-day delivery in select stores, with plans to expand by the end of the year.

In a market where capacity is hard to come by, Home Depot expanded its options by leveraging new partners who had capabilities that spanned beyond their own while offering convenience to the customer. As a result, they will reach more customers than before at lower costs to the consumer. Stephanie Smith, a senior vice president of supply chain for Home Depot, said, “This partnership brings us even closer to our goal of offering same-day or next-day deliveries to 90 percent of the U.S. population.”4 Seeking partnerships, even from those who may be competitors, is an excellent way to reduce the consumer’s expenses. Also, shippers should begin exploring alternatives in last-mile delivery to increase customer satisfaction, including added convenience and reduced shipping costs.

Difficulties in the supply chain are impacting shippers and consumers alike. On the one hand, consumers are experiencing inflation in certain products; on the other hand, shippers see their profits eroded. From either end, this situation is far from ideal. Labor shortages and capacity constraints are but two of several factors are contributing to higher costs. Organizations will have to wrestle with whether they will pass some of these costs on to consumers or allow them to affect margins. Either way, to overcome this dilemma, shippers must get creative to offset rising costs.

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Alex Hayes and Derrick Lopes are Senior Associates at GEP, a leading provider of procurement and supply chain solutions to Fortune 500 companies.

1 https://apnews.com/article/business-california-los-angeles-long-beach-shipping-ffbbf935495b0bbea064bcbb1ce330cb

2 https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry

3 https://www.businessinsider.com/coca-cola-uses-bulk-vessels-amid-shipping-crisis-2021-10

4 https://www.forbes.com/sites/walterloeb/2021/10/11/could-home-depots-partnership-with-walmart-lead-to-other-close-working-arrangements/?sh=25aebd867b88

supply chain

WHY AND HOW BIG DATA IS A GAME CHANGER FOR THE SUPPLY CHAIN

In its 2013 report titled Big Data in Logistics, DHL proclaimed that “The logistics sector is ideally placed to benefit from the technological and methodological advancements of Big Data” and predicted “huge untapped potential for improving operational efficiency and customer experience and creating useful new business models.”

Today, the transformation of logistics to a data-based model is no longer a futuristic fantasy. The ability to create a digital ID, carry it through the supply chain, capture all transactions along the way and implement action against that data has now become a reality. Intelligent identification solutions exist to optimize item-level data captured at the beginning of a product’s journey, enabling full inventory visibility and accuracy, as well as enhanced routing speed for all partners along the supply chain. With product-level data, supply chain execs are empowered to analyze and make intelligent real-time decisions with the ebbs and flows of demand.

As a global industry, 3PL professionals need to understand the promise of identity solutions and the key benefits they offer. The first step for leaders across the enterprise is recognizing that the supply chain is not a set of standalone “links.” On the contrary, supply chains should be viewed holistically to leverage advances in data infrastructure that enable a total ecosystem of item + shipping specific information across each touchpoint of a supply chain. 

The Importance of Accuracy 

Among the many advantages of assigning digital identities to products is speed—and the key to speed is accuracy. Think of it this way: The utilization of item data throughout the supply chain enables speed with accuracy. 

Consider a logistics scenario with an RFID-enabled intelligent label applied at the source of an item. As the item begins its journey, the data captured and carried in that label enables shipment verification. When the “intelligently” labeled products arrive at a facility or warehouse, the recipient can quickly confirm that what was received is precisely what was expected. 

The data contained in the intelligent labels also allow outbound verification to the store or e-commerce retailer. In turn, the same label gives the retailer the inbound verification they need to move the items directly into inventory, with data that assures its accuracy. At the end of the supply chain the retailer has confidence that they can show the customer exactly what is available.

Shipping errors are another logistics challenge that can be addressed through accurate data. Currently, up to 4% of shipping errors are due to misrouted items that must be returned to the distribution center for re-routing. Legacy operations that rely on separate processes (with the six to eight touchpoints that a product moves through) increase the chance of such errors. Therefore, there is an operational benefit to routing solutions that are based on item- or parcel-level data to allow cross-docking optimization within the supply chain that enables greater speed accuracy. Put simply, velocity increases as accuracy improves.

Moving Toward Sustainability

As the supply chain becomes more normalized post-pandemic, back-burnered sustainability goals are re-emerging, driven by consumers, regulations, and cost—not necessarily in that order. The supply chain as an industry is being specifically tasked with sustainability.

A report from the management consulting group BCG stated, “By implementing a net-zero supply chain (the state in which as much carbon is absorbed as is released into the atmosphere), companies can amplify their climate impact, enable emission reductions in hard-to-abate sectors, and accelerate climate action in countries where it would otherwise not be high on the agenda.” This report also noted that “in most supply chains, the costs of getting to net-zero are surprisingly low.”

On the consumer side, a research study from Deloitte found that “concerned consumers are adopting a raft of different measures to shop and live more sustainably. One of the most prominent lifestyle changes is “shopping for brands with environmentally sustainable values.” In fact, over a third of consumers surveyed indicated that they value ethical practices in the products and services they buy. 

The data captured and carried in intelligent labels provide real-world efficiency solutions for achieving sustainability in logistics. One of the areas in which supply chains can address carbon emissions is in the transport of goods. One factor that deters sustainability in 3PL is trucks not being loaded to their full capacity.

In fact, our own studies have shown that up to 14% more volume can be loaded into a truck by utilizing key data that consider size and weight of parcels, creates the most efficient delivery route and considers other variables such as perishability.  Clearly, such sustainability initiatives have the potential to lower costs as well.

Caution: Hazardous Materials

There is yet another issue that is becoming more urgent and that is the prevalence of hazardous materials in the supply chain. First, it is necessary to define hazardous materials. These are substances or materials that the U.S. Secretary of Transportation has determined are “capable of posing an unreasonable risk to health, safety and property when transported in commerce.”

These materials include hazardous substances and wastes, marine pollutants, elevated-temperature materials, and other materials designated by federal Hazardous Materials Regulations.

In supply chain operations, the Federal Aviation Administration (FAA) requires these items to have “Hazardous Material” markings and/or labels. There are significant financial penalties for incorrect shipping identification, including accruing fines that can amount to more than $78,000 per instance.

Among the many items on the FAA’s list are the lithium-ion batteries used in many consumer products, each of which require the special markings and/or labels and have their own specific requirements for placement in cargo. Sorting solutions that use digital product identities currently exist to alert shippers where certain items, such as these batteries, should and should not be placed.

The importance of data in logistics will only increase over time. Deploying RFID intelligent label solutions at the source of an item will carry it safely, sustainably and quickly through all of the touchpoints along the supply chain—and beyond. The future of a data-enabled logistics eco-system is here. 

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Michael Kaufmann is director, Market Development, Logistics with Avery Dennison. The company recently launched its the atma.io connected product cloud platform that gives unique digital IDs to physical objects for end-to-end tracking from the source to the customer and even beyond to take part in the circular economy. 

caramel

China Increases Caramel Imports Fivefold with Swelling Supplies from Asian Countries

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

Last year, China recorded a sharp rise in caramel imports. The supplies into China grew from $80M in 2019 to $408M in 2020, or from 167K tonnes to 1.1M tonnes in physical terms. Thailand, Viet Nam and Myanmar remain the largest caramel suppliers, comprising 82% of Chinese imports. These three countries provided most of the increment in Chinese imports in 2020. The average caramel import price dropped by -21% y-o-y to $378 per tonne in 2020.

Chinese Caramel Imports by Country

In 2020, caramel imports into China skyrocketed from 167K tonnes in 2019 to 1.1M tonnes in 2020. In value terms, caramel imports surged from to $80M in 2019 to $408M (IndexBox estimates) in 2020.

Thailand (506K tonnes), Viet Nam (272K tonnes) and Myanmar (109K tonnes) were the main suppliers of caramel imports to China, together comprising 82% of total imports. These countries were followed by Malaysia, the Lao People’s Democratic Republic and Indonesia, which together accounted for a further 16%.

In value terms, the largest caramel suppliers to China were Thailand ($190M), Viet Nam ($101M) and Malaysia ($39M), together accounting for 81% of total imports. Myanmar, Indonesia and Lao People’s Democratic Republic lagged somewhat behind, together accounting for a further 12%.

Over the last year, China boosted the supplies from Thailand from $32M to $190M. Chinese imports from Viet Nam grew from $0.5M to $101M, while Myanmar’s exports to China rose from $1M to $26M. Among other countries, Malaysia, Indonesia and the Lao People’s Democratic Republic have also seen a rise in caramel shipments to China.

In China, the average caramel import price stood at $378 per tonne in 2020, decreasing by -21% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Malaysia ($381 per tonne), while the price for Myanmar ($242 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Myanmar, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

Ro-Ro

HOW TO PROMOTE HEALTH AND REDUCE HAZARDS IN RO-RO TERMINALS

When it comes to the health and safety of your personnel, nothing should fall through the cracks. The port industry is no exception to this: If you are currently running roll-on and roll-off operations—from ports to terminals to vessels—you need to be mindful of the safety best practices round-the-clock.

Workplaces need to be free from accidents, injuries, and fatalities to optimally fulfill their operations. In which case, ro-ro operators are responsible for complying with safety rules that protect crewmembers, stevedores, longshoremen, and office-based employees. 

What Can Contribute to Ro-Ro Accidents?

There are several factors to watch out for when implementing safety hazards in ro-ro. The following are based on the guidelines set by the Occupational Health and Safety Administration (OHSA):

1. Lack of training. The inability of employees to perform their duties due to lack of training can be detrimental to worker safety. Without proper training in the field, serious injuries can occur to the employee and/or those around them.

2. Fatigue. Being overworked is common in the port industry because the operations are non-stop. Being overfatigued makes it difficult for any crew member to stay focused on the job and have the energy to perform at their best.

3. Inadequate traffic controls. Managing automobiles coming in and out of the vessel can be hazardous without a proper traffic control system in place. Arrangements should be made to ensure everyone’s safety, such as creating clearly marked walkways or putting stoplights to manage traffic.

4. Material failures. Worn-out machinery is prone to accidents. Some old systems may malfunction in the middle of high-intensity activities.

5. Unsafe walking surfaces. Tripping hazards are common in cargo holds. Working areas must be free from debris and lashing points, or at the very least, there should be signages that alert workers if they are in unsafe working areas.

6. Inadequate ventilation. Internal combustion engine-driven ships must have proper ventilation around-the-clock. If left unattended, this could exceed the allowable limit of carbon monoxide concentrations.

7. Improper use of—or failure to use—personal protective equipment. Protective equipment exists to keep hazards from inflicting further injuries, especially burns or electrocution. Protective equipment such as chemical hood respiratory masks also keep you from inhaling harmful chemicals.

How Ro-Ro Operators Can Promote Health and Safety

As the port industry continues to advance, changes have introduced new hazards. The occupation taken upon by port workers has very high accident rates, so doing at least the bare minimum health and safety protocols will go a long way in mitigating risks. 

That said, each ro-ro operator should be able to develop, manage and implement working initiatives that promote the safety of its workers no matter what circumstances they are in. Here are a few general principles to follow.

1. Design a protocol that prevents your worker from handling crucial tasks alone. Accidents can happen anytime, especially during critical activities. If you have enough manpower to handle port activities, make sure that everyone has an accountability partner. But in circumstances where only one person can do the job, make sure that there is good communication with a party chief or anyone within the port to check on your worker’s safety.

2. Set a working budget for protective gear and other safety materials. Estimate your budget allocation for protective gear, warning signages, alert systems and other precautionary items to protect your workers during operations. Set aside a budget for testing equipment as well. It’s helpful to use expense report software to help you manage and track costs, ensuring that all crucial gears are purchased first.  In addition, include a budget for repairs and inventory. 

3. Make sure air flows properly. Adequate ventilation ensures that port workers have access to clean and sustainable air while on deck. According to the International Labour Force (ILF) in Geneva: “When internal combustion engines exhaust into a hold, intermediate deck or any other compartment, the employer must ensure that the atmosphere is tested as frequently as needed to provide carbon monoxide concentrations from exceeding allowable limits.”

Tests should be made regularly to ensure that the area is conducive for workers to perform their duties in without worrying about inhaling harmful chemicals. Likewise, the ILF mentioned that managers should ensure that no papers are on the loose and are properly stored in a secure and organized fashion. Papers tend to be sucked into the exhaust ventilation system, which could block airflow.

4. Make safety protocols visible. While most safety protocols are common sense, some people can forget them or not be trained in performing them properly. Make all your safety efforts obvious to port workers so they have reference materials when they need them most. For example, print out catalogs that tell them a step-by-step process on how to put out a fire in case it happens.

All signage should be clearly displayed throughout the site, whether on the ship or at the port. This should include a 24-hour emergency hotline as well as a map to the nearest clinic, hospital, fire station or police department. Entry and exit points, first aid kits and other emergency equipment should also have signage so workers know where to find what they need.

5. Be mindful of vehicle stowage and lashing or unlashing. Make sure that all vehicles, trailers and other automobiles are secured before taking off. The best practice is to secure one vehicle before another is positioned behind it. Also, lashers should have their own lashing points, both on the automobile and the ship.

6. Beware of slips and falls. Onboarding the ship is hazardous due to inadequate lighting, frequent weather changes and fluctuating water conditions that can make the deck very slippery. Make sure to put clear warning signages in areas that are prone to slips and falls, and make sure that these are well-lit. Likewise, prepare an on-site emergency plan that outlines clear instructions on what workers need to do in case of a fall.

7. Double-check machinery before sailing off. For safety purposes, make sure that you have experts inspect the machinery, the schedules of the workers, the first-aid kits, and other equipment. Check if there are possible oil spillages and if so, avoid all contact unless they are deemed safe. Note that chemicals release toxic fumes that may cause injuries or even start a fire.

Prioritize Safety First at All Times

These are some of the most basic health and safety practices you can do in your ro-ro operations, but they are not intended to replace any national regulations. Rather, they should help give you a better idea of where to start improving your organization’s protocols.

toothpaste

Despite Global Toothpaste Trade Slows Down, China Boosts Its Exports

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

Global toothpaste imports reduced modestly to $4.1B in 2020. The U.S., Russia, and the UK constitute the largest dentifrice importers worldwide, while China leads global exports. China managed to increase its exports both in physical and value terms last year despite the drop in global trade. Russia remains the largest importer of toothpaste from China, accounting for nearly 14% of Chinese exports.

Global Toothpaste Imports by Country

Global toothpaste imports shrank to 928K tonnes in 2020, waning by -2% compared with the year before. In value terms, toothpaste imports reduced modestly to $4.1B (IndexBox estimates) in 2020.

The countries with the highest levels of toothpaste imports in 2020 were the U.S. (53K tonnes), Russia (46K tonnes), the UK (39K tonnes), Germany (36K tonnes), Canada (29K tonnes), Italy (28K tonnes), France (27K tonnes), China (27K tonnes), Malaysia (26K tonnes), Japan (26K tonnes), Poland (24K tonnes) and Hong Kong SAR (23K tonnes), together resulting at 41% of total import. The Netherlands (22K tonnes) followed a long way behind the leaders.

In value terms, the largest toothpaste importing markets worldwide were China ($223M), the U.S. ($200M) and Canada ($181M), with a combined 15% share of global imports. Germany, the UK, France, Russia, the Netherlands, Poland, Italy, Malaysia, Hong Kong SAR and Japan lagged somewhat behind, together accounting for a further 29%. Malaysia emerged as the fastest-growing importer of dentifrices in 2020, ramping up the supplies from $95M to $101M over the last year.

The average toothpaste import price stood at $4,418 per tonne in 2020, remaining relatively unchanged against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was China, while Japan was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Germany, while the other global leaders experienced more modest paces of growth.

World’s Largest Toothpaste Exporters

In 2020, China (213K tonnes), distantly followed by Poland (95K tonnes), Thailand (68K tonnes), Slovakia (67K tonnes), Germany (66K tonnes) and the UK (43K tonnes) represented the main exporters of toothpaste, denture cleaners and other dentifrices, together constituting 62% of total exports. Mexico (34K tonnes), France (25K tonnes), the U.S. (23K tonnes), India (23K tonnes), Guatemala (15K tonnes) and Viet Nam (14K tonnes) took a relatively small share of total exports.

In value terms, the largest toothpaste supplying countries worldwide were China ($415M), Germany ($385M) and Poland ($370M), together accounting for 31% of global exports. These countries were followed by Slovakia, the U.S., Thailand, the UK, Mexico, France, India, Guatemala and Viet Nam, which together accounted for a further 39%.

Despite last year drop in global toothpaste imports, China exceeded to boost its exports by +9.3 y-o-y in physical terms and by +5.7% y-o-y in value terms. Russia became the key destination for toothpaste exported from China, accounting for nearly 14% of Chinese exports.

Source: IndexBox Platform

ether imports

China’s Ether Imports Soar to $1.3B

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

China’s import volume of ethers jumped from 1.2M tonnes in 2019 to 2M tonnes in 2020. In value terms, imports reached $1.3B. Saudi Arabia, Taiwan and Qatar dominate the Chinese imports, supplying 55% of the total volume. Last year, all these three countries ramped up their ether exports to China significantly. The average ether import price stood at $664 per tonne in 2020, dropping by -31.3% y-o-y.

China’s Ether Imports by Country

In 2020, the volume of ethers imported into China surged to 2M tonnes, increasing by +58% compared with the year before. In value terms, ether imports rose by +8.7% to $1.3B (IndexBox estimates) in 2020.

In 2020, Saudi Arabia (654K tonnes) constituted the largest ether supplier to China, accounting for a 33% share of total imports. Moreover, ether imports from Saudi Arabia exceeded the figures recorded by the second-largest supplier, Taiwan (Chinese) (209K tonnes), threefold. Qatar (199K tonnes) occupied the third position in this ranking, with a 10% share.

In 2020, Saudi Arabia increased exports to China by +38.8% y-o-y. Chinese ether purchases from Taiwan rose by +15.5% y-o-y, while Qatar’s supplies to China grew from 86K tonnes in 2019 to 199K tonnes in 2020.

In value terms, Saudi Arabia ($328M) constituted the largest ether supplier to China, comprising 25% of total imports. The second position in the ranking was occupied by Taiwan (Chinese) ($113M), with an 8.6% share of total imports. It was followed by South Korea, with a 7.4% share.

The average ether import price stood at $664 per tonne in 2020, reducing by -31.3% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was India, while the price for the United Arab Emirates was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by South Korea, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

plastic

The U.S. Ramps Up Plastic Bag Imports to Record $3.2B

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

In 2020, American imports of plastic sacks and bags soared by +7.7% y-o-y to $3.2B, continuing a steady increase seen over the past decade. China, Canada and Thailand remain leading suppliers of plastic sacks and bags to the U.S., accounting for 55% of the American imports. Last year, purchases from China declined, while imports from Canada grew significantly. Germany emerged as the fastest-growing supplier of plastic sacks and bags to the U.S. The average plastic bag import price increased by +2.7% y-o-y to $3,284 per tonne in 2020. 

US’s Imports of Plastic Sacks and Bags

In 2020, approx. 973K tonnes of plastic sacks and bags were imported into the U.S., surging by +4.9% on the year before. In value terms, plastic bag imports rose by +7.7% y-o-y to $3.2B (IndexBox estimates) in 2020. Over the past decade, American imports grew from 544K tonnes to 973K tonnes.

China (266K tonnes), Canada (184K tonnes) and Thailand (85K tonnes) were the main suppliers of plastic bag imports to the U.S., with a combined 55% share of total imports. Mexico, Viet Nam, Malaysia, Taiwan (Chinese), South Korea, India, Cambodia and Germany lagged somewhat behind, together comprising a further 35%.

In physical terms, purchases from China reduced by -16% y-o-y, while the imports from Canada boosted by +38% y-o-y. Among the main suppliers, Germany recorded the highest growth rate of the import volume. The supplies from Germany grew from 11K tonnes to 17K tonnes over the last year.

In value terms, the largest plastic bag suppliers to the U.S. were China ($844M), Canada ($583M) and Thailand ($267M), with a combined 53% share of total imports. Mexico, Viet Nam, Malaysia, South Korea, Taiwan (Chinese), India, Germany and Cambodia lagged somewhat behind, together comprising a further 35%.

The average plastic bag import price stood at $3,284 per tonne in 2020, rising by +2.7% against the previous year. Average prices varied somewhat amongst the major supplying countries. In 2020, the countries with the highest prices were South Korea ($3,862 per tonne) and Germany ($3,753 per tonne), while the price for India ($2,982 per tonne) and Cambodia ($3,085 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Malaysia, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

LCL package

LCL: A Shipping Solution for Today’s Global Logistics Market

Less-than-container load (LCL) shipping has become part of the solution design to many supply chain challenges. LCL shipping provides shippers with cost and time savings as they face longer wait times at ports along with more last-minute-change needs, based on disruption and delays.

In a recent global survey conducted by our team, shippers reported congestion and capacity as their main pain points in today’s ocean environment. While we have seen a continuous increase in shippers turning to LCL shipping to battle those challenges, almost a quarter of the participants in the survey noted they were not regularly shipping LCL today.

In the following, I’ll share where we’ve seen shippers find success through LCL and why you should consider it if it’s not already a part of your shipping strategy.

Combating today’s tight air and ocean market

Consumer demand continues to be at an all-time high, and we expect that demand to increase through the holiday season and into next year. Some of the larger air terminals in the United States are seeing delays of up to 5-7 days to claim cargo, and ocean vessels continue to be delayed at the ports of Los Angeles and Long Beach, waiting on average 10-15 days to berth.

While delays may seem inevitable, there are creative solutions for shippers to lessen the impact. One way is diversifying freight through different modes like LCL. In fact, we helped hundreds of customers shift some of their freight from full-container-load (FCL) to LCL to keep their products moving.

For instance, CoolDrive Auto Parts—Australia’s largest family-owned importer and wholesaler of aftermarket automotive parts—worked with our global team of experts to introduce more flexibility into their supply chain with LCL.

“LCL not only gives us incredible flexibility, but also provides that same flexibility to the businesses we supply…We can see how new products perform without overcommitting to them. It has helped us grow our catalog, create relationships with new suppliers, and allowed us to be even more flexible and responsive to specific customer needs.”

The reality is—space for LCL shipments is typically more readily available since you’re only looking for some container space versus an entire empty container, which can be scarce in today’s market with ongoing container shortages. Working with a provider, like C.H. Robinson, who has the global suite of service offerings and scale to run our own consolidation loads, helps you not only plan and load out cargo more frequently—but also better handle unplanned freight during peak times.

Expedited LCL options

While moving freight via traditional ocean shipments for the holidays has passed, retailers can turn to expedited LCL as an option to avoid solely depending on air. Of course, this would depend on the origin and destination of those goods. The quicker ocean service has also grown in popularity amongst e-commerce shippers, where air was once seen as the only viable option.

While expedited LCL shipping is not as fast as air, it is an alternative to consider for some of your freight. One of our customers went this route earlier this year when we helped convert some of their air freight to expedited LCL shipments. While the transit time was longer, with the right planning, they were able to build the appropriate amount of inventory before making the adjustments—and in return reaped some cost savings.

Cost savings

LCL shipping is the go-to product in terms of cost savings on conversions from air to ocean. In fact, expedited LCL services are still seeing upwards of 60-75% savings versus today’s airfreight environment. And because you only pay for the space you use, LCL service can even show reduction over under-utilized FCL shipments.

It can also aid in saving on storage fees. It’s no secret warehouse space in the United States and around the globe continues to be tight. By using shipments in transit as inventory in transit, LCL shipping can even help lower warehousing and inventory costs, which can help reduce your tariff spend per shipment.

Keep in mind, LCL is only one part of a supply chain, but it’s an opportunity many shippers aren’t taking advantage of. If you’re interested in learning more about LCL and how it could benefit you—talk to your dedicated C.H. Robinson representative or reach out to one of our logistics experts.

Greg Scott is the director of LCL ocean services at C.H. Robinson