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NEWTREND USA VINDICATED BY CBP’S FINDING OF NO EVASION

newtrend

NEWTREND USA VINDICATED BY CBP’S FINDING OF NO EVASION

City of Industry, California-based Newtrend USA Co. Ltd., a leading producer of fine chemical products, announced Sept. 30 that U.S. Customs and Border Protection (CBP) found no merit to the transshipment allegations made against it by its competitor, Salvi Chemical Industries Ltd. 

In September 2018, Salvi alleged to CBP that Newtrend evaded payment of antidumping duty cash deposits by transshipping Chinese-origin glycine through Thailand. That complaint initiated a CBP Enforce and Protect Act (EAPA) investigation in which the government required Newtrend Thailand to prove that it was not transshipping glycine produced in China.

The EAPA probe confirmed that Newtrend only manufactures and ships glycine to the U.S. manufactured at its affiliate in Thailand, Newtrend Food Ingredient Co., Ltd. 

“Newtrend is gratified with the outcome,” says Douglas Heffner, chairman of the U.S. Customs and International Trade practice at Drinker Biddle & Reath, LLP, who represented the company. “They were confident they had operated in complete compliance with all regulations and are pleased to put this behind them.”

USMCA

THESE COMPANIES KEEP CROSS-BORDER CARGO MOVING, EVEN WITH USMCA UP IN THE AIR

Our trilateral trade bloc is in a sort of limbo, stuck between the North American Free Trade Agreement (NAFTA) that went into effect on Jan. 1, 1994, and the floundering United States Mexico Canada Agreement (USMCA), which the countries’ leaders signed on Nov. 30, 2018, but has only been ratified in Mexico.

According to the U.S. Chamber of Commerce, which has pushed for more ease of free trade among the three nations for years, about $1.7 billion worth of goods and services flow between the U.S. and Mexico borders every day. That’s about 2 percent of the GDP in America, where, according to the United Nations’ International Trade Center, Mexico and Canada are the two largest trading partners for U.S. manufacturers and shippers after China.

Despite these uncertain times, there are North American cross-border traders that continue to thrive. Consider the collection that follows. 

AVERITT EXPRESS

One of the nation’s leading freight transportation and supply chain management providers, Averitt is celebrating 50 years of service. The company cites customized, cross-border transportation solutions among its many, many specialties. Five years ago, Averitt slashed less-than-truckload (LTL) service times from the U.S. Midwest to Ontario, Canada, in recognition of the province’s rise as a manufacturing hub. Averitt’s strategically placed border service centers in Laredo, El Paso, Harlingen and Del Rio provide easy access to all points throughout Mexico, by rail, truck or expedited air. 

BNSF RAILWAY

One of North America’s leading freight transportation companies, BNSF boasts a.32,500 route-mile network covering 28 U.S. states and three Canadian provinces. The railway utilizes multiple strategies to make international shipments easier for customers. These include market experience, customs clearance know-how and participation in special North American rail service alliances. The BNSF network also includes five U.S.-Mexico gateways (San Diego, El Paso, Eagle Pass, Laredo and Brownsville) and operations in Fort Worth, Texas, and Mexico City, Guadalajara and Monterrey, Mexico. Service options include carload, transload and intermodal (Mexi-Modal) that allow for shipments of all major commodities into and out of Mexico.  

CG RAILWAY

Picture in your head a railroad line extending from the American South to southern Mexico. You can imagine the track snaking along the contour of the Gulf of Mexico, extending west from Alabama through Mississippi and Louisiana before reaching Texas and turning due south through the border and beyond. What you did not picture was a shift from rail at Alabama’s Port of Mobile to an ocean ferry making a direct route over water to Puerto Coatzacoalcos in Veracruz, Mexico. That’s what CG Railway (CGR) has been doing since 2000: providing a faster, more cost-effective route between the eastern U.S. and Canada to central and southern Mexico. CGR offers C-TPAT (Customs Trade Partnership Against Terrorism) certification, bilingual customer support, proactive port security, reduced mileage and wear and tear on equipment and direct interchanges with the CSX, Norfolk Southern, Canadian National and Kansas City Southern railroads, the Alabama & Gulf Coast Railway and Terminal Railway Alabama State Docks and their Mexican counterparts. 

CN NORTH AMERICA

Canadian National is based in Montreal, Quebec, and the Class I freight railway’s network is the largest in that country by physical size and revenue. Established in 1919 and formerly government-owned, Canada’s only transcontinental railway spans from the Atlantic coast in Nova Scotia to the Pacific coast in British Columbia, across about 20,400 route miles of track. But you’d be mistaken to think CN, as it has more commonly known since 1960, is strictly a Great White North concern. The railway also serves the U.S. South and Midwest and, having gone private in 1995, it now counts as its single largest shareholder Bill Gates. Through the ’90s and 2000s, CN North America has acquired multiple lines passing through several U.S. states.

CROWLEY

The private, Jacksonville, Florida-based corporation is the largest operator of tugboats and barges in the world. Crowley American Transport provides ocean liner cargo services between the U.S., Canada, Mexico, South America and the Caribbean. Its American Marine Transport unit delivers local, over-the-road, and commercial trucking services in the continental U.S. Crowley Marine Services provides worldwide contract and specialized marine transportation services, including petroleum product transportation and sales, tanker escort and ship assist, contract barge transportation and ocean towing, logistics and support services, marine salvage and emergency response services, spill-response services on the West Coast and all-terrain transportation services.

CSX TRANSPORTATION

The subsidiary of CSX Corp., a Fortune 500 company headquartered in Jacksonville, Florida, CSX Transportation is a Class I freight railroad operating in the eastern United States and the Canadian provinces of Ontario and Quebec. The railroad operates around 21,000 route miles of track. While its lines blanket the east coasts of Canada and the U.S., you don’t have to be located on railroad track for CSX to help you, as it has access to 70 ports and nationwide transloading and warehousing services.

DB SCHENKER 

The global logistics and supply chain management giant has 93 branches in every U.S. state, Mexico and Canada. Schenker of Canada Ltd. provides logistics services, airfreight, custom brokerage, custom consulting, sports events, land transport and courier services. DB Schenker Mexico celebrated its 40th anniversary in 2017, having begun down there with a single location and 40 associates and now boasting of 500 employees in its corporate office in Mexico City as well as in Guadalajara, Monterrey, Queretaro, Puebla, Cancun, Ciudad Juarez and various other branches. DB Schenker Mexico offers air freight, ocean freight, land freight, customs brokerage, over-dimensioned projects, warehousing and contract logistics.

KANSAS CITY SOUTHERN

The KCS North American rail holdings and strategic alliances are primary components of a NAFTA railway system linking the commercial and industrial centers of the U.S., Mexico and Canada. “KCS is just one interchange away from every major market in North America,” boasts the railroad. KC Southern de Mexico offers unique rail access to the Port of Lazaro Cardenas on Mexico’s Pacific coast, which is an ideal spot to avoid congestion in U.S. West Coast ports. KCS also has access to Gulf of Mexico ports, including Altamira, Tampico and Veracruz in Mexico and Brownsville, New Orleans, Corpus Christi, Houston, Gulfport, Lake Charles, Mobile and Port Arthur in the U.S. 

LIVINGSTON INTERNATIONAL

Billed as North America’s No. 1 company focused on customs brokerage and compliance, Livingston International also offers international trade consulting and freight forwarding across the continent and around the globe. Headquartered in Chicago, Livingston operates along the U.S.-Canada border, with regional air/sea hubs in Los Angeles, New York and Norfolk. Livingston employs more than 3,200 employees at more than 125 key border points, seaports, airports and other strategic locations in North America, Europe and the Far East. Livingston is a customs brokerage leader in Canada, and the company also promises to move goods seamlessly into Mexico.

LOGISTICS PLUS

Whether it is working as a 3PL or 4PL partner, the Erie, Pennsylvania-based company specializes in total logistics management, LTL and truckload transportation, rail and intermodal services, project cargo and project management, import/export services, air and ocean freight forwarding, warehousing and distribution, global trade compliance services and logistics and technology solutions. Logistics Plus serves small and large businesses throughout the Greater Toronto Area, with an office in the zone that has access to the Port of Toronto and expertise in shipping in and out of Canada though the St. Lawrence River and Lake Ontario. Bilingual logistics experts help customers with intra-Mexico, cross-border, or international shipping using air, ocean, ground or rail transportation. 

LYNDEN

Seattle-based Lynden not only delivers to, from and within Canada, the company does business there. Its long-established Canadian presence allows it to provide complete coverage for any transportation need. They can help with warehousing and distribution or 3PL in Canada, where Lynden boasts of knowing “the ins and outs of customs brokerage, duties and taxes, imports and exports.” From its offices in Edmonton and Calgary, Alberta, and Whitehorse, Yukon Territory, Lynden offers scheduled less-than-truckload (LTL) and truckload (TL) service to points in Alaska and the Lower 48.

LYNNCO

The Tulsa, Oklahoma-based company optimizes customers’ supply chains coast-to-coast in the U.S., Canada, and Mexico. LynnCo manages businesses and determines how and when ground, international air/ocean, spot/capacity, procurement and expedited services are the best options. For instance, LynnCo helped a U.S. manufacturer determine if shifting units to Mexico was profitable. The answer was no after factoring in the risks of moving, poor facilities, added shipping costs and product quality. 

POLARIS TRANSPORTATION GROUP

Billing itself as “an American company headquartered in Toronto,” Polaris has a quarter century of experience in scheduled LTL service between the U.S. and Canada. The company knows both countries’ customs rules and participates in every border security program, including C-TPAT, PIP (Partners in Protection), CSA (Customs Self- Assessment) and FAST (Free and Secure Trade). The company’s scheduled service connects Ontario and Quebec markets with the U.S. through a combination of its fleet and facilities along with those of its long-established partner carriers.

PUROLATOR INTERNATIONAL

The U.S. subsidiary of Canada’s leading provider of integrated freight and parcel delivery services, Jericho, New York-based Purolator International seamlessly transports shipments between the U.S. and Canada and manages the respective countries’ customs processes with aplomb. They pick up/drop off at every point in the U.S. and boast of a distribution network that extends to every Canadian province and territory. What truly takes Purolator International over the top is a commitment to continue improving, as evidenced by a recent $1 billion growth investment that includes two new hubs that will allow for faster fulfillment for both courier and e-commerce shipments from the U.S. throughout Canada, where consumers also will be seeing more access points, including upgraded retail pickup locations.

R+L GLOBAL

“Shipping to Mexico is facil,” according to Ocala, Florida-based R+L Global Logistics. Its qualified network of premium carriers in Mexico provide secure door-to-door Less than Truckload (LTL) and Full Truckload (FTL) services. They cover the entire Mexican territory and move cargo across all major U.S./Mexico border gateways. They also move intra-Mexico shipments. 

SCHNEIDER

The Green Bay, Wisconsin-based giant specializes in regional trucking, long-haul, bulk, intermodal, supply chain management, brokerage, warehousing, port logistics and transloading. Decades of cross-border freight experience means customer cargo moves without question or delay. Once goods move across the border, Schneider has the assets and personnel in place to deliver it safely and securely. “Here’s the simple fact: No one makes shipping to Canada and Mexico easier or more efficient than Schneider,” the company boasts. “By road or by rail, your freight is in the best hands possible.”

SENKO 

The Japanese logistics giant has offices in the U.S., where their own trucks and warehouses work with a network of vendors. The 3PL/4PL supply chain solutions provider uses its own IT technology developed in Japan to help arrange liquid tank transportation, flatbed, drayage, refrigerated, dry, expedited shipping and freight broker services. Senko Logistics Mexico is the company unit south of the border.

SUNSET TRANSPORTATION

The St. Louis-based company has offices and agents across the country, and customers whose shipments are moved around the globe. Sunset arranges freight for a wide range of industries, from wholesale food distribution to specialized construction equipment. “Cross-border solutions” include customs clearance for land, rail, air and ocean, LTL, TL, intermodal, rail, air, expedited and specialized freight, contracted lane and spot market, C-TPAT compliance, multimodal programs, a Laredo, Texas, warehouse and distribution facility and 24/7 bilingual, bicultural support.

SURGERE 

Headquartered in North Canton, Ohio, Surgere is a leader in linking OEMs, tier suppliers and logistics providers through an automotive data system that provides visibility on returnable containers at every stage of their movement between supplier and vehicle maker. The supply chain innovators, whose clients include Nissan and CEVA Logistics, recently opened Technologias Avanzadas Surgere de Mexico in Aguascalientes, Mexico, which has more than 1,300 suppliers and automotive plants within 200 kilometers of the location. “Central Mexico is the automotive hub for Latin America—making it a natural progression—and a welcomed challenge for us,” explained David Hampton, Surgere’s vice president for International Operations, in announcing the move. Surgere hopes to have the Mexico office fully staffed before the end of this year.

TQL

Cincinnati, Ohio-based Total Quality Logistics (TQL) was founded in 1997 and is now the second-largest freight brokerage firm in the nation, with more than 5,500 employees in 57 offices across the county. Known for combining industry-leading technology and unmatched customer service, TQL boasts of providing competitive pricing, continuous communication and “a commitment to do it right every time.” They move more than 1.6 million loads across the U.S., Canada and Mexico annually through a broad portfolio of logistics services and a network of more than 75,000 carriers.

USA TRUCK

The Van Buren, Arkansas-based company provides customized truckload, dedicated contract carriage, intermodal and third-party logistics freight management services throughout North America. USA Truck has nearly two decades of experience servicing Mexico, which has allowed the company to expand its presence south of the border and partner with many Mexican carriers. USA Truck’s Capacity Solutions coordinates transportation into and out of Mexico with a vast carrier network, and they service most major Mexican markets and consistently maintain C-TPAT certification. USA Truck also has a select fleet of third-party carriers providing service into the provinces of Ontario and Quebec, Canada.

UTXL

Launched in 1997 by four founders with more than 100 years of combined asset-based trucking experience, UTXL started with this goal: to be the safest, most reliable and cost effective niche capacity resource to customers in support of their core carrier programs. UTXL has served thousands of shippers across the U.S., Canada and Mexico, including some of the largest shippers in the world. One of their mottos is: “Any point in the U.S., Canada or Mexico … any length of haul.”

WERNER ENTERPRISES

“We keep America moving” is the motto of this Omaha, Nebraska-based company that has one of the largest transportation services to and from Mexico and is a premiere long-haul carrier to and from Canada and throughout North America. Werner has offices in Mexico and Canada as well as experienced and knowledgeable staff engineer solutions. PAR documentation allows for quicker access through customs into Canada, and their network of alliance carriers can manage entire supply chains within Canada and Mexico regardless of equipment needs.

WW SOLUTIONS

The unit of Wallenius Wilhelmsen Logistics participates in Mexico’s automotive industry not only as a carrier and logistics provider. WW Solutions specializes in processing solutions at ports and at OEM plants, providing services that include pre-delivery inspections, accessory fittings, repairs, storage, washing, vehicle preparation, quality control, inventory management and the procurement of technical services.

YRC FREIGHT

Yellow Transportation (founded in 1924 in Oklahoma City, Oklahoma) merged with Roadway (founded in 1930 in Akron, Ohio) to create YRC Freight, which is the largest subsidiary of YRC Worldwide Inc. based in Overland Park, Kansas. A leading transporter of industrial, commercial and retail goods, YRC Freight offers solutions for businesses across North America and is the only carrier with on-site, bilingual representatives at border crossing points in Mexico to expedite customs clearance.

Qatar Trade Summit

Qatar Trade Summit: Innovation and Disruption Revolutionising the Logistics Industry in Qatar.

Valuable insights into the future of Qatar’s Trade and investments sector aligned with logistics and supply chain in the region will be showcased at the exclusive Qatar Trade Summit scheduled to take place from 25th to 27th November 2019 in Doha, Qatar, The summit is Qatar’s only event focusing on the nation’s economic diversification plans and progress with strategic plans on becoming the regions logistics hub. 

The summit will strive to examine the nation’s potential on becoming the region’s economic powerhouse via 3 days of deliberations on sea ports development, Shipping and Air Cargo industry, future of logistics and supply chain as well as a final day dedicated to engage in interactive sessions on Qatar’s trade and investment prospects. Attending delegates and partners will get a first-hand knowledge of Qatar’s logistics and supply chain industry, the planned development of sea ports to support regional growth, the influence of shipping air cargo and the free zones in opening up opportunities for regional and foreign companies to invest and do business in Qatar” stated Allan Martin, Communications Director, Qatar Trade Summit. 

All aspects of the shipping industry, port development, air cargo, supply chain and logistics and trade and investments will be discussed at this summit. The event will engage the entire ecosystem of the logistics business in Qatar focusing on procurement, forwarding, planning, new business, infrastructure and investments. The theme of the summit is to explore the scale of innovation and disruption which is revolutionizing the logistics industry in Qatar and the nation’s keen intent on diversifying into a thriving economy prior to the prestigious FIFA 2022 football world cup taking place in Qatar. Qatar Trade Summit will directly impact a comprehensive range of sectors in the region and will cover solutions and products to uplift these sectors. The areas covered will be Ship building, Port management, Port Infrastructure development, Air Cargo expansion, Logistics and supply chain solutions and the investments and business opportunities in Qatar. 

The summit’s profile includes key dignitaries such as H.E. Akbar Al Baker, Group CEO, Qatar Airways, Capt. Abdulla Al-Khanji, CEO, Mwani Qatar, Qatar, Mr. Abdulrahman Essa Al-Mannai, President & CEO, MILAHA, Qatar, Mr. Lim Meng Hui, CEO, Qatar Free Zones Authority (QFZA), Mr. James Baker, Editor, Lloyd’s List Containers, UK, Mr. Glyn Hughes, Global Head of IATA Cargo, Switzerland, Mr. Turhan Özen, Chief Cargo Officer, Turkish Airlines, Mr. Amadou Diallo, CEO, DHL Global Forwarding, Middle East & Africa, Mr. Bertrand Maltaverne, Solutions Consultant, Ivalua, Austria, Mr. Fikret Ersoy, MD, BDP International, Middle East, Turkey & Africa from Qatar and across the globe who will be presenting at the conference and the summit will also host some of the world’s best solution providers and also invite attendees from leading government and private entities from Qatar. 

The Qatar Trade Summit will also feature one of the most exhaustive and inclusive knowledge sessions seen at a national summit. The conference will include 19 topics spread across 4 sessions, and two key workshops all scheduled over 3 days of high level networking and interaction. Qatar Trade Summit will assist in realising Qatar’s ambitions to become the logistics and trade leader in the Middle East. 

______________________________________________________________________

About Organizer: © Qatar Trade Summit | Allan Martin | Email: info@qatartradesummit.com | allan@qatartradesummit.com | UK Tel: +44 20 3807 8492 | India Mobile: +91 96061 70760 Qatar Contact: Saf | Tel: +974 33834548 | +974 66947607 | saf@apexqatar.com LinkedIn: Qatar Trade Summit | twitter: @tradeqatar 

africa

Africa is Ready for Growth with Support from Trans-Ocean Transportation

RTM Lines is a trans-ocean transportation company headquartered in Norwalk, Connecticut, with over 39 years of experience in the global ocean carrier business. As a respected ocean transportation provider, we are continually equipping clients with valuable information and insight related to the ocean transportation industry.  Recently, RTM Lines has invested time and research to better understand the growth of African infrastructure and resources; and how those factors affect opportunities for growth and development in the breakbulk and project cargo markets. Research shows Africa resources and opportunities in key locations such as the Democratic Republic of Congo, Ethiopia, and Northern Mozambique. 

“Right now, the Democratic Republic of Congo (DRC) is sitting on the world’s largest cobalt resource, however the ongoing political turmoil, makes it very difficult to access the cobalt,” said Richard Tiebel, RTM’s Executive Vice President. He states, “Africa is showing more exponential growth than any other continent. Right now, markets like Ethiopia have shown 8% GDP growth, per annum. Analyzation shows there are a number of factors within urbanization, ICT (Telecommunications), and the Extractives Industry (Oil, Gas, and Mining) driving this growth.” 

With an array of potential possibilities for growth in Africa in the coming years, RTM Lines recommends directing attention to trades and the international markets in Africa, specifically in the shipping and trading processes. The growth and opportunities available in the African market, have great potential for clients that develop and understand the Africa market. 

“In the next 4-5 years, city populations in Africa will double, which means the infrastructure will need development. This development will motivate the community to build infrastructure that supply power, water, sanitation, housing developments, and support to serve the new population in the area. Most governments couldn’t support fixed-line infrastructures, but Africa is going through an information, communication, and technological revolution. The private sector is supporting this revolution and allowing Africans to pursue business opportunities. Companies like Microsoft have been investing in some African tech sectors, to develop talent and to take Africa forward,” said Tiebel.

As the International Maritime Organization (IMO) 2020 regulation will soon go into effect, Tiebel shared his perspective on how Africa’s natural resources can positively influence the trans-ocean transportation industry. 

Mr. Tiebel states, “the gas in Northern Mozambique is the world’s 12th largest natural gas resource. A lot of infrastructure will be needed in order to get this gas because the town itself is very small and scarcely has roads to support it, no port, no airport, or even power and electricity. The town of Palma will literally be built up in order to access this gas resource offshore.” He continues, “the cost of the IMO regulatory change on the shipping industry is unknown, and though we know the IMO’s decision will impact refiners, producers, bunker suppliers, and more, Africa offers a variety of natural resources to emerge as a major beneficiary of this regulation. This supply of natural resources has the potential to help the trans-ocean transportation industry control the anticipated spike in fuel costs in 2020.” 

RTM Lines is committed to providing customers the information necessary to ship ocean cargo with confidence. Understanding the changes and regulations in these expanding and shifting markets is key to providing smooth transit for infrastructure, mining, and oil & gas project cargo. RTM Lines is both knowledgeable and competent in global operations. Port to port, RTM Lines strives to improve the global trade market and the quality of the ocean transportation industry.

cotton-seed oil

Global Cotton-Seed Oil Market – Production Rose 2.7% to Reach 5.7M tonnes in 2018

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

The global cotton-seed oil market revenue amounted to $8.2B in 2018, falling by -3.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.3% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2011 with an increase of 13% y-o-y. The global cotton-seed oil consumption peaked at $8.9B in 2013; however, from 2014 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of cotton-seed oil consumption in 2018 were India (1.6M tonnes), China (1.4M tonnes) and Pakistan (470K tonnes), together comprising 62% of global consumption. These countries were followed by Brazil, Australia, Uzbekistan, Turkey, the U.S., Burkina Faso and Myanmar, which together accounted for a further 25%.

From 2007 to 2018, the most notable rate of growth in terms of cotton-seed oil consumption, amongst the main consuming countries, was attained by Myanmar, while the other global leaders experienced more modest paces of growth.

In value terms, India ($3.5B) led the market, alone. The second position in the ranking was occupied by China ($1.5B). It was followed by Pakistan.

The countries with the highest levels of cotton-seed oil per capita consumption in 2018 were Australia (10,839 kg per 1000 persons), Uzbekistan (7,845 kg per 1000 persons) and Burkina Faso (4,923 kg per 1000 persons).

From 2007 to 2018, the most notable rate of growth in terms of cotton-seed oil per capita consumption, amongst the main consuming countries, was attained by Myanmar, while the other global leaders experienced more modest paces of growth.

Market Forecast 2019-2025

Driven by increasing demand for cotton-seed oil worldwide, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.4% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 6.3M tonnes by the end of 2025.

Production 2007-2018

In 2018, the amount of cotton-seed oil produced worldwide stood at 5.7M tonnes, going up by 2.7% against the previous year. The total output volume increased at an average annual rate of +1.0% over the period from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations over the period under review. The pace of growth was the most pronounced in 2011 with an increase of 6.5% y-o-y. The global cotton-seed oil production peaked in 2018 and is likely to continue its growth in the immediate term.

In value terms, cotton-seed oil production stood at $7.4B in 2018 estimated in export prices. Over the period under review, the total output indicated a modest increase from 2007 to 2018: its value increased at an average annual rate of +1.0% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2012 with an increase of 24% y-o-y. The global cotton-seed oil production peaked at $9.4B in 2013; however, from 2014 to 2018, production failed to regain its momentum.

Production By Country

The countries with the highest volumes of cotton-seed oil production in 2018 were India (1.6M tonnes), China (1.4M tonnes) and Pakistan (470K tonnes), together accounting for 61% of global production. These countries were followed by Brazil, Australia, Uzbekistan, the U.S., Turkey, Burkina Faso and Myanmar, which together accounted for a further 26%.

From 2007 to 2018, the most notable rate of growth in terms of cotton-seed oil production, amongst the main producing countries, was attained by Australia, while the other global leaders experienced more modest paces of growth.

Exports 2007-2018

In 2018, approx. 168K tonnes of cotton-seed oil were exported worldwide; picking up by 17% against the previous year. In general, cotton-seed oil exports, however, continue to indicate a mild slump. The most prominent rate of growth was recorded in 2008 when exports increased by 18% y-o-y. In that year, global cotton-seed oil exports reached their peak of 234K tonnes. From 2009 to 2018, the growth of global cotton-seed oil exports remained at a lower figure.

In value terms, cotton-seed oil exports amounted to $144M (IndexBox estimates) in 2018. In general, cotton-seed oil exports, however, continue to indicate a temperate deduction. The most prominent rate of growth was recorded in 2008 when exports increased by 18% year-to-year. In that year, global cotton-seed oil exports attained their peak of $237M. From 2009 to 2018, the growth of global cotton-seed oil exports remained at a somewhat lower figure.

Exports by Country

The U.S. (47K tonnes) and Australia (42K tonnes) represented the key exporters of cotton-seed oil in 2018, resulting at approx. 28% and 25% of total exports, respectively. Kazakhstan (16K tonnes) held a 9.7% share (based on tonnes) of total exports, which put it in second place, followed by Malaysia (5.7%). The following exporters – Benin (7,036 tonnes), Argentina (6,725 tonnes), Azerbaijan (5,989 tonnes), South Africa (5,630 tonnes), Burkina Faso (4,310 tonnes) and Brazil (3,637 tonnes) – together made up 20% of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Australia, while the other global leaders experienced more modest paces of growth.

In value terms, the largest cotton-seed oil markets worldwide were the U.S. ($42M), Australia ($25M) and Kazakhstan ($14M), together accounting for 56% of global exports.

In terms of the main exporting countries, Australia experienced the highest growth rate of exports, over the last eleven years, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average cotton-seed oil export price amounted to $857 per tonne, declining by -2.4% against the previous year. In general, the cotton-seed oil export price continues to indicate a mild descent. The growth pace was the most rapid in 2010 an increase of 6.8% against the previous year. Over the period under review, the average export prices for cotton-seed oil attained their maximum at $1,012 per tonne in 2008; however, from 2009 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was South Africa ($1,396 per tonne), while Azerbaijan ($558 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Brazil, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

Global imports stood at 141K tonnes in 2018, picking up by 14% against the previous year. Overall, cotton-seed oil imports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 with an increase of 36% year-to-year. The global imports peaked at 162K tonnes in 2013; however, from 2014 to 2018, imports failed to regain their momentum.

In value terms, cotton-seed oil imports totaled $132M (IndexBox estimates) in 2018. Overall, cotton-seed oil imports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 when imports increased by 33% year-to-year. Over the period under review, global cotton-seed oil imports attained their peak figure at $155M in 2008; however, from 2009 to 2018, imports stood at a somewhat lower figure.

Imports by Country

In 2018, Mexico (16,353 tonnes), Malaysia (14,348 tonnes), Australia (13,963 tonnes), Saudi Arabia (12,915 tonnes), Tajikistan (11,277 tonnes), South Africa (8,493 tonnes), Nigeria (8,024 tonnes), Germany (6,365 tonnes), Canada (6,355 tonnes), India (6,036 tonnes), Uzbekistan (5,582 tonnes) and Kyrgyzstan (4,855 tonnes) were the major importers of cotton-seed oil in the world, achieving 81% of total import.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Saudi Arabia (+85.1% per year), while the other global leaders experienced more modest paces of growth.

In value terms, Australia ($16M), Malaysia ($15M) and Mexico ($15M) appeared to be the countries with the highest levels of imports in 2018, with a combined 35% share of global imports. These countries were followed by Tajikistan, Nigeria, Canada, South Africa, Germany, India, Uzbekistan, Kyrgyzstan and Saudi Arabia, which together accounted for a further 40%.

In terms of the main importing countries, Tajikistan experienced the highest rates of growth with regard to imports, over the last eleven-year period, while the other global leaders experienced more modest paces of growth.

Import Prices by Country

The average cotton-seed oil import price stood at $939 per tonne in 2018, dropping by -2.4% against the previous year. Over the period under review, the cotton-seed oil import price, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2008 an increase of 18% year-to-year. Over the period under review, the average import prices for cotton-seed oil reached their maximum at $1,116 per tonne in 2010; however, from 2011 to 2018, import prices failed to regain their momentum.

Prices varied noticeably by the country of destination; the country with the highest price was Canada ($1,220 per tonne), while Saudi Arabia ($6.6 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Mexico, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

coconut

Global Coconut Market 2019 – Thailand’s Imports Continue to Grow Robustly, While Domestic Production Declines

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

In 2018, the global coconut market size increased by 3.5% to $35.6B. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Consumption By Country

The countries with the highest volumes of coconut consumption in 2018 were Indonesia (19M tonnes), the Philippines (14M tonnes) and India (12M tonnes), with a combined 72% share of global consumption. Sri Lanka, Brazil, Viet Nam, Papua New Guinea, Mexico and Thailand lagged somewhat behind, together comprising a further 16%.

From 2007 to 2018, the most notable rate of growth in terms of coconut consumption, amongst the main consuming countries, was attained by Viet Nam, while the other global leaders experienced more modest paces of growth.

In value terms, India ($10B), the Philippines ($6.7B) and Indonesia ($4.5B) appeared to be the countries with the highest levels of market value in 2018, with a combined 60% share of the global market. These countries were followed by Sri Lanka, Brazil, Papua New Guinea, Thailand, Viet Nam and Mexico, which together accounted for a further 20%.

The countries with the highest levels of coconut per capita consumption in 2018 were Papua New Guinea (140 kg per person), the Philippines (131 kg per person) and Sri Lanka (124 kg per person).

From 2007 to 2018, the most notable rate of growth in terms of coconut per capita consumption, amongst the main consuming countries, was attained by Viet Nam, while the other global leaders experienced mixed trends in the per capita consumption figures.

Production 2007-2018

In 2018, approx. 61M tonnes of coconuts were produced worldwide; leveling off at the previous year. Overall, coconut production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2012 with an increase of 5.3% y-o-y. Over the period under review, global coconut production attained its peak figure volume at 62M tonnes in 2013; however, from 2014 to 2018, production failed to regain its momentum. The general negative trend in terms of coconut output was largely conditioned by a relatively flat trend pattern of the harvested area and a relatively flat trend pattern in yield figures.

In value terms, coconut production stood at $36.3B in 2018 estimated in export prices. Overall, the total output indicated a mild expansion from 2007 to 2018: its value decreased at an average annual rate of -0.1% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, coconut production increased by +35.7% against 2016 indices. The most prominent rate of growth was recorded in 2009 when production volume increased by 50% y-o-y. In that year, global coconut production reached its peak level of $49.4B. From 2010 to 2018, global coconut production growth remained at a lower figure.

Production By Country

The countries with the highest volumes of coconut production in 2018 were Indonesia (19M tonnes), the Philippines (14M tonnes) and India (12M tonnes), together accounting for 73% of global production. These countries were followed by Sri Lanka, Brazil, Viet Nam, Papua New Guinea and Mexico, which together accounted for a further 15%.

From 2007 to 2018, the most notable rate of growth in terms of coconut production, amongst the main producing countries, was attained by Viet Nam, while the other global leaders experienced more modest paces of growth.

Harvested Area 2007-2018

In 2018, approx. 12M ha of coconuts were harvested worldwide; standing approx. at the previous year. In general, the coconut harvested area continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 with an increase of 2.5% y-o-y. Over the period under review, the harvested area dedicated to coconut production attained its peak figure in 2018 and is expected to retain its growth in the near future.

Yield 2007-2018

In 2018, the global average yield of coconuts amounted to 4.9 tonne per ha, approximately reflecting the previous year. In general, the coconut yield continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2012 with an increase of 4.3% against the previous year. Over the period under review, the average coconut yield attained its maximum level at 5.4 tonne per ha in 2007; however, from 2008 to 2018, yield stood at a somewhat lower figure.

Exports 2007-2018

Global exports stood at 555K tonnes in 2018, surging by 49% against the previous year. Overall, the total exports indicated resilient growth from 2007 to 2018: its volume increased at an average annual rate of +7.3% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2018 with an increase of 49% against the previous year. In that year, global coconut exports reached their peak and are likely to continue its growth in the immediate term.

In value terms, coconut exports totaled $269M (IndexBox estimates) in 2018. Overall, the total exports indicated a buoyant increase from 2007 to 2018: its value increased at an average annual rate of +7.3% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, coconut exports increased by +107.2% against 2012 indices. The most prominent rate of growth was recorded in 2014 with an increase of 33% year-to-year. Over the period under review, global coconut exports reached their maximum in 2018 and are expected to retain its growth in the near future.

Exports by Country

Indonesia was the largest exporter of coconuts in the world, with the volume of exports amounting to 290K tonnes, which was near 52% of total exports in 2018. Thailand (70K tonnes) took the second position in the ranking, followed by Viet Nam (57K tonnes). All these countries together held near 23% share of total exports. The following exporters – Cote d’Ivoire (23K tonnes), Malaysia (19K tonnes), the Netherlands (16K tonnes), Mexico (14K tonnes), Guyana (12K tonnes) and India (11K tonnes) – together made up 17% of total exports.

Exports from Indonesia increased at an average annual rate of +12.8% from 2007 to 2018. At the same time, Guyana (+97.7%), Viet Nam (+43.2%), Malaysia (+18.9%), India (+11.3%), the Netherlands (+6.8%), Thailand (+6.4%), Cote d’Ivoire (+4.2%) and Mexico (+3.9%) displayed positive paces of growth. Moreover, Guyana emerged as the fastest-growing exporter in the world, with a CAGR of +97.7% from 2007-2018. While the share of Indonesia (+38 p.p.), Viet Nam (+10 p.p.), Thailand (+6.2 p.p.), Malaysia (+2.9 p.p.) and Guyana (+2.1 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest coconut markets worldwide were Thailand ($70M), Indonesia ($65M) and Viet Nam ($22M), with a combined 58% share of global exports. Cote d’Ivoire, the Netherlands, India, Mexico, Guyana and Malaysia lagged somewhat behind, together comprising a further 23%.

Among the main exporting countries, Guyana (+104.1% per year) recorded the highest rates of growth with regard to exports, over the last eleven years, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average coconut export price amounted to $483 per tonne, declining by -12.6% against the previous year. Overall, the coconut export price, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 an increase of 19% against the previous year. Over the period under review, the average export prices for coconuts reached their peak figure at $553 per tonne in 2017, and then declined slightly in the following year.

Prices varied noticeably by the country of origin; the country with the highest price was India ($1,127 per tonne), while Indonesia ($223 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by India, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, approx. 671K tonnes of coconuts were imported worldwide; surging by 26% against the previous year. In general, coconut imports continue to indicate a resilient increase. The growth pace was the most rapid in 2016 when imports increased by 48% against the previous year. Over the period under review, global coconut imports reached their peak figure in 2018 and are likely to continue its growth in the immediate term.

In value terms, coconut imports totaled $334M (IndexBox estimates) in 2018. In general, coconut imports continue to indicate a remarkable expansion. The pace of growth appeared the most rapid in 2011 with an increase of 43% y-o-y. The global imports peaked in 2018 and are likely to see steady growth in the immediate term.

Imports by Country

Thailand (210K tonnes) and Malaysia (199K tonnes) were the largest importers of coconuts in 2018, reaching approx. 31% and 30% of total imports, respectively. China (60K tonnes) ranks next in terms of the total imports with a 9% share, followed by the U.S. (5.7%). The United Arab Emirates (27K tonnes), the Netherlands (19K tonnes) and Singapore (11K tonnes) followed a long way behind the leaders.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Malaysia, while the other global leaders experienced more modest paces of growth.

In value terms, Thailand ($77M) constitutes the largest market for imported coconuts worldwide, comprising 23% of global imports. The second position in the ranking was occupied by the U.S. ($34M), with a 10% share of global imports. It was followed by China, with a 8.9% share.

In Thailand, coconut imports increased at an average annual rate of +30.9% over the period from 2007-2018. In the other countries, the average annual rates were as follows: the U.S. (+12.0% per year) and China (+8.2% per year).

Import Prices by Country

The average coconut import price stood at $498 per tonne in 2018, falling by -5.9% against the previous year. Over the period under review, the coconut import price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 when the average import price increased by 23% year-to-year. In that year, the average import prices for coconuts reached their peak level of $631 per tonne. From 2016 to 2018, the growth in terms of the average import prices for coconuts remained at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was the U.S. ($880 per tonne), while Malaysia ($147 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the United Arab Emirates, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Intermodal Expo

Intermodal Expo Brings the Best in Business and Expertise

September 15 marked the first day of this year’s IANA Intermodal Expo in Long Beach, California. This is no ordinary expo, however. While more than 125 exhibitors and 60 plus intermodal experts in attendance, this conference covers all bases for three days each year, leaving no unfinished business. It’s no wonder why some are referring to the paramount event as “all-encompassing” while addressing all tiers of business.

Whether you’re interested in learning about the latest and greatest in intermodal solutions or seeking the expertise from an industry expert on strategic planning, IANA’s Intermodal Expo undoubtedly provides a clear view of where the industry stands while navigating the current landscape.

Among leading companies in attendance discussing the latest and greatest topics, business strategies, trends, and solutions in intermodal and supply chain include Loadsmart, Armstrong & Associates, SeaIntelligence Consulting, Canadian National Railway (CN), United Parcel Service, BNSF Railway, and many more.

Technology and automation continue leading trends as more companies continue to report increasing demand for the capabilities, efficiencies, and opportunities enabled through innovation

“There’s always a force in this space right now that changes everything and one needs to be cognizant of that force,” explained Jeffrey Leppert, Senior Vice President, Capacity Solutions, Redwood Logistics during the “Growth Strategies for Non-Asset 3PLs session.

Maintaining an advantageous position against competitors in an evergreen business landscape can be tricky. Hunter Yaw, Vice President of Product Management and Business Development, at Loadsmart addressed this topic head-on, leaving all apprehensions aside.

“We focus on what systems our customers are currently using and we integrate a lot with major TMS systems. We could ask folks to come  to us one way or another but, the reality is… we’re much better off partnering with the existing players in the industry and teaming with them to add more value within the current system’s framework rather than try to reinvent the wheel across the board.”

As the final day quickly approaches, Intermodal Expo will resume at 8 a.m. sharp on Wednesday with the Intermodal Safety Committee Meeting followed by the Operations Committee Meeting.

Global Trade Magazine will continue participating throughout the remainder of the conference at booth 812 ready to discuss your business goals for growth and expansion. Come by and see us for the final day of Intermodal Expo 2019!

Hurricane Dorian

SCPA Contributes to Hurricane Dorian Support Efforts

The Port of Freeport on Grand Bahama Island received two 40-foot shipping containers in addition to 18 containers filled with supplies thanks to combined efforts from a group of maritime partners including MSC Group and South Carolina Ports Authority. MSC Group called on industry players to come together and provide support for the region through swift preparations for the containers to ship. The shipments follow the devastating impact left behind by Hurricane Dorian including wiped out electric power, water resources, and destroyed homes.

“Despite our global presence and large-scale operations, MSC is ultimately a family company and we are fully committed to supporting both immediate and longer-term relief and recovery efforts in the Bahamas,” said Fabio Santucci, Managing Director MSC USA. “MSC’s extensive land and sea operations and services, our regional knowledge and our gracious partners have allowed us to quickly mobilize to collect and deliver these items of necessity.”

Of critical supplies loaded and sent to Port of Freeport by more than 10 group partners, over 200 gas generators, tarps, gas cans, canopy tents, power cords, extension cords, batteries, water, toiletries, baby wipes, diapers, cleaning supplies were successfully received and distributed.

“Together with our charitable arm, the MSC Foundation, we are continuing to work closely with local officials, community leaders and key relief and recovery organizations in the Bahamas to identify additional ways in which our MSC Group can support the immediate and long-term needs of the local residents and businesses as they look to rebuild in the aftermath of Hurricane Dorian,” added Santucci.

Among the partners contributing to these efforts include the following:  South Carolina Ports Authority, U.S. Maritime Alliance Ltd., DCLI, South Atlantic and Gulf Coast District – International Longshoremen’s Association, Virginia Ports Authority/Virginia International Terminals Inc., Port of Miami/Miami-Dade County, Port of Houston Authority, TICO Tractors, Stevedoring Services of America, S.C. Stevedores Association, Maritime Association of South Carolina and Container Maintenance Corp./CMC Logistics.

“In Charleston, we understand the devastation a hurricane can have on entire communities,” S.C. Ports Authority president and CEO Jim Newsome said. “After seeing Hurricane Dorian’s distressing impacts on the Bahamas, we wanted to take action and send crucial supplies in the hopes of providing some relief.”
Those interested in providing support for the efforts are being asked to contact Chris Parvin or Jim Newsome.
tariffs

TARIFFS: NAVIGATING THE LATEST TARIFFS ON CHINESE GOODS

Despite recent plans to revive moribund negotiations, the prospects for a near term solution to the U.S.- China trade conflict are very much in doubt. The United States has expanded the tariffs already in place to cover nearly all imports from China, and in response China has hit back with tariffs of its own where it may hurt U.S. exports the most, mainly in swing-state industries such as farming and automobile production. 

The stock markets and economic growth in each country have increasingly shown signs of strain from the trade war and a cease-fire could provide a welcome respite. Although the Trump administration has agreed to renew trade negotiations in early October, it would be irresponsible to expect these talks to arrive at a meaningful resolution based on how entrenched each side has become. Leaving fate in the hands of the negotiators is risky business since prior negotiations have stalled or led to further escalations. So what can companies do to protect their interests and to mitigate the impact of the tariffs? 

Many companies find they cannot quickly change their supply chains or stop doing business with China. This is because U.S. importers and producers are dependent on Chinese parts makers. Some of these parts may not be available in the United States or third countries. Moving production to the United States could itself take years. But in the short term, companies can take certain steps to mitigate the impact of the tariffs. 

First, companies should consider seeking official exclusions from the tariffs with the Office of the United States Trade Representative (USTR). Since importers are responsible for paying the tariff amounts, it is crucial that they are well informed about the exclusion process and consider filing requests as soon as possible since deadlines are looming. 

Tariffs on imports from China have been divided into four separate Lists; goods on Lists 1 and 2 encompass roughly $50 billion of imports from China and their exclusion process has closed. Lists 3 and 4 cover the remaining $500 billion of imports and are entering their final phase. 

List 3 goods have been subject to a 25 percent tariff since May 2019, but the rate is set to increase to 30 percent on October 15, 2019 (originally the increase was set for October 1, but President Trump has extended it by two weeks as a gesture of “good will” towards China). The deadline for requesting List 3 exclusions is September 30. 

List 4 goods, or all goods not presently covered by Lists 1-3, are subject to a 15 percent tariff effective September 1 (List 4A), or December 15 (List 4B). The exclusion process for List 4 has yet to be announced, but is likely to resemble that which applied to the previous Lists. 

What makes an exclusion request successful? This has been like reading tea leaves, although certain patterns have emerged. Namely, successful applications are extremely detailed and provide adequate information for USTR staff on which to base their opinion. Products not manufactured in the United States, products for which the manufacturer has a U.S. or foreign patent, or products which are difficult to manufacture in the United States due to high costs or environmental concerns are examples of those for which the USTR has approved exclusions. 

Other factors which have shown to affect exclusions include: potential U.S. jobs lost; financial impact on an industry sector; store of facility closings; customer demographics; ability of the customers to accept some of the tariff costs; geographic location; whether the products are included in the “Made in China 2025” policies; capacity of U.S. manufacturers to produce the quantities and quality required for the product; impact on swing states in the next presidential election; or effective public relations. 

However, an exclusion request can take time to submit, and often much longer for the USTR to reach a determination. Exclusions have also been rare. 

For those looking for another option, a change in the product’s customs classification may provide a viable option. U.S. Customs and Border Protection can only levy tariffs on the condition of goods as imported. When goods are imported, they are assigned a specific classification under the Harmonized Tariff Schedule (HTS) subheading. Each subheading for Chinese imports is assigned a specific tariff rate depending on where it falls on Lists 1-4. U.S. companies can work with their Chinese suppliers to determine whether certain products could be shipped in separate parts, finished or unfinished, or in embellished forms so that they legally fall under an HTS subheading assigned to a lower tariff rate. 

For some U.S. companies, passing on of the tariff cost to their consumers may be preferable. But for many, this is not a competitive solution. Some customers simply will not tolerate the increased pricing and demand for the products would correspondingly decline. 

While it is not always a quick solution, U.S. companies concerned about the duration of the current trade war may also consider diversifying their sourcing away from China altogether by shifting some or all manufacturing to the United States, or to a third country. A product with a non-China country of origin would not be subject to the current tariffs. However, country of origin rules are not harmonized internationally and different rules may apply under free trade agreements, or the substantial transformation test. Therefore, it is important for importers to understand the applicable rules and carefully verify the country of origin when considering this option. 

Finally, another approach would be to lower the dutiable value of the product upon importation to the United States through the so-called “first sale” valuation. In this scenario, U.S. importers pay duty on the price that a trading company pays the manufacturer instead of the higher price the importer pays the trading company. While the tariffs would still apply in this case, their impact would be less severe because the dutiable value would be significantly lower. 

_____________________________________________________________________

Mark Ludwikowski is the leader and Courtney Taylor is an Associate of the International Trade practice of Clark Hill, PLC. They are resident in the firm’s Washington D.C. office and can be reached at 202-772-0909; mludwikowski@ClarkHill.com and cgtaylor@ClarkHill.com

pulp

U.S. Pulp Market – Exports to China Fell 9.4% in 2018, U.S Companies Lost $78M

IndexBox has just published a new report: ‘U.S. Pulp Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the pulp market in the U.S. amounted to $4.8B in 2018, going up by 9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.5% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The pace of growth was the most pronounced in 2014 with an increase of 19% against the previous year. In that year, the pulp market attained its peak level of $5.1B. From 2015 to 2018, the growth of the pulp market remained at a lower figure.

Pulp Production in the U.S.

In value terms, pulp production totaled $7.2B in 2018. Overall, pulp production, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2014 with an increase of 8.9% year-to-year. In that year, pulp production reached its peak level of $7.7B. From 2015 to 2018, pulp production growth failed to regain its momentum.

Exports from the U.S.

In 2018, approx. 6M tonnes of pulp were exported from the U.S.; going down by -4.7% against the previous year. Over the period under review, pulp exports continue to indicate a mild shrinkage. The growth pace was the most rapid in 2015 with an increase of 3.1% against the previous year. Exports peaked at 6.4M tonnes in 2013; however, from 2014 to 2018, exports remained at a lower figure.

In value terms, pulp exports amounted to $4.5B (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +1.7% from 2013 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed over the period under review. The growth pace was the most rapid in 2018 when exports increased by 11% against the previous year. In that year, pulp exports reached their peak and are likely to continue its growth in the immediate term.

Exports by Country

China (1.6M tonnes) was the main destination for pulp exports from the U.S., with a 26% share of total exports. Moreover, pulp exports to China exceeded the volume sent to the second major destination, Japan (479K tonnes), threefold. The third position in this ranking was occupied by Italy (391K tonnes), with a 6.6% share.

From 2013 to 2018, the average annual rate of growth in terms of volume to China stood at -3.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+3.1% per year) and Italy (-3.4% per year).

In value terms, China ($1.2B) remains the key foreign market for pulp exports from the U.S., comprising 26% of total pulp exports. The second position in the ranking was occupied by Japan ($410M), with a 9.1% share of total exports. It was followed by Italy, with a 6.3% share.

From 2013 to 2018, the average annual growth rate of value to China amounted to +1.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+6.9% per year) and Italy (-1.5% per year).

Export Prices by Country

In 2018, the average pulp export price amounted to $759 per tonne, going up by 16% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +3.1%. The growth pace was the most rapid in 2018 an increase of 16% against the previous year. In that year, the average export prices for pulp reached their peak level and is likely to continue its growth in the immediate term.

Prices varied noticeably by the country of destination; the country with the highest price was Japan ($855 per tonne), while the average price for exports to Germany ($554 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to South Korea, while the prices for the other major destinations experienced more modest paces of growth.

Imports into the U.S.

In 2018, the amount of pulp imported into the U.S. totaled 2.5M tonnes, increasing by 4.2% against the previous year. The total import volume increased at an average annual rate of +3.5% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2018 when imports increased by 4.2% year-to-year. In that year, pulp imports reached their peak and are likely to continue its growth in the immediate term.

In value terms, pulp imports totaled $1.5B (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +4.8% over the period from 2013 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 23% year-to-year. In that year, pulp imports attained their peak and are likely to continue its growth in the immediate term.

Imports by Country

In 2018, Brazil (2.1M tonnes) constituted the largest pulp supplier to the U.S., accounting for a 85% share of total imports. Moreover, pulp imports from Brazil exceeded the figures recorded by the second-largest supplier, Chile (248K tonnes), ninefold.

From 2013 to 2018, the average annual rate of growth in terms of volume from Brazil amounted to +1.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Chile (+20.8% per year) and Sweden (+19.7% per year).

In value terms, Brazil ($1.4B) constituted the largest supplier of pulp to the U.S., comprising 90% of total pulp imports. The second position in the ranking was occupied by Chile ($75M), with a 4.8% share of total imports.

From 2013 to 2018, the average annual growth rate of value from Brazil totaled +4.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Chile (+16.9% per year) and Sweden (+14.9% per year).

Import Prices by Country

The average pulp import price stood at $619 per tonne in 2018, growing by 18% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +1.2%. The pace of growth appeared the most rapid in 2018 an increase of 18% y-o-y. In that year, the average import prices for pulp reached their peak level and is likely to continue its growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Brazil ($655 per tonne), while the price for Chile ($300 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Brazil, while the prices for the other major suppliers experienced a decline.

Companies Mentioned in the Report

Profile Products, Domtar Industries, Georgia-Pacific Brewton, Woodland Pulp, Cascade Pacific Pulp, Northwest Capital Appreciation, Forest Resolute Products, American Paper Recycling, Cascades Tissue Group-Oregon, A Division of Cascades Holding US, Parsons & Whittemore, St Paper, Alabama River Cellulose, Buckeye Technologies, Brunswick Cellulose, Parsons & Whittemore Enterprises, Fibrek Inc., Port Townsend Holdings Company, Buckeye Mt. Holly, Lest Distributors, Southern Cellulose Products, DOMTAR A.W., Alabama River Group, GP Cellulose, Buckeye Florida Limited Partnership, Pratt Paper (ny), Fibrek Recycling U.S. , Cosmo Specialty Fibers, Ox Paperboard

Source: IndexBox AI Platform