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U.S. Fish and Wildlife Service Awards Nearly $19 Million To Help Coastal Community Resilience, Provide Economic Benefits and Protect Native Ecosystems 

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Archives, Global Logistics, Global Trade Daily, International Trade, News, Uncategorized

U.S. Fish and Wildlife Service Awards Nearly $19 Million To Help Coastal Community Resilience, Provide Economic Benefits and Protect Native Ecosystems 

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Projects in eight coastal states will improve wetlands for wildlife, coastal communities and recreation. 

Coastal wetlands are vitally important in protecting us from floods, filtering our water, supporting recreation and local economies, and providing habitat for fish and wildlife. Despite their importance, there has been a steady loss of coastal wetlands. Today, the U.S. Fish and Wildlife Service is awarding nearly $19 million to support 21 projects in eight coastal states to protect, restore or enhance nearly 14,000 acres of coastal wetlands and adjacent upland habitats under the National Coastal Wetlands Conservation Grant Program.

State, local and Tribal governments, private landowners, conservation groups and other partners will contribute more than $20 million in additional funds to these projects. These grants will have wide-reaching benefits for local economies, people and wildlife – boosting coastal resilience, reducing flood risk, stabilizing shorelines and protecting natural ecosystems.

The Service awards grants of up to $1 million to states based on a national competition, which enables states to determine and address their highest conservation priorities in coastal areas. Since 1992, the Service has awarded more than $450 million in grants under the program.

The 2023 grants will help recover coastal-dependent species, enhance flood protection and water quality, provide economic benefits to Tribes and underserved communities, increase outdoor recreational opportunities, and benefit habitat and wildlife at several national wildlife refuges.

States receiving funds this year are Alaska, California, Hawai‘i, Maine, North Carolina, South Carolina, Texas and Washington. Several of the projects funded by the 2023 grant program, include:

Tarboo Wildlife Preserve Acquisition and Restoration

The Washington Department of Ecology, in partnership with Northwest Watershed Institute (NWI), is awarded $689,000 to permanently protect and restore 35 acres along Tarboo Creek’s tributaries and wetlands as an important addition to NWI’s 500-acre Tarboo Wildlife Preserve in Tarboo Valley. This project is part of a long-term landscape-scale conservation effort to protect the Tarboo-Dabob Bay ecosystem. The project site includes wetlands and tributaries that flow into Tarboo Creek and significant upland conifer and hardwood forest. The project will protect spawning and rearing habitat for threatened steelhead and coho salmon, coastal cutthroat trout, and western brook lamprey. It will also protect habitat for at-risk land birds and other species, including black-tailed deer, Roosevelt elk, cougar and black bear.

Galveston Bay Wetland Acquisition

The Texas Parks and Wildlife Department, in partnership with Galveston Bay Foundation, is awarded $1 million to acquire 60 acres of coastal habitat with 43 acres of wetlands in Galveston County, Texas, known as Redfish Cove. These coastal habitats provide critical nursery, foraging, breeding and nesting habitat for state-identified species of greatest conservation need in Texas, including eastern black rail and the federally threatened piping plover. They also harbor economically significant fisheries, including shrimp, crab, redfish, trout and flounder. Galveston Bay Foundation will manage the tract along with its other coastal habitat conservation holdings.

RMS-Wadmacon Tract Acquisition

The South Carolina Conservation Bank and its conservation partners are awarded $1 million to add 2,180 acres of forested land on the Santee River to the Wee Tee State Forest by acquiring the RMS-Wadmacon tract. The property is almost entirely palustrine forested wetland floodplain from Dawhoo Lake and Wadmacon Creek to the Santee River, which form the parcel’s northern and southern boundaries. Conservation of the property supports habitats utilized by at least 116 species of conservation concern in the South Carolina State Wildlife Action Plan, including waterfowl, wading birds, bats, songbirds, amphibians, reptiles, fish, crayfish and mussels. It will provide habitat for at least 19 federal or state-listed species. This project will also support the objectives of at least 20 regional, state and federal conservation plans

Potter Marsh Watershed Conservation – Phase 2

The Alaska Department of Natural Resources is awarded $1 million to implement Phase 2 of the Potter Marsh Watershed Conservation Project. Potter Marsh provides a critical linkage of conserved lands between two conserved areas – the 32,500-acre Anchorage Coastal Wildlife Refuge and the 495,000-acre Chugach State Park. Phase 2 will permanently protect 83.5 acres of the largest remaining unprotected and undeveloped tract of urban coastal wetlands ecosystem in the Anchorage area. Potter Creek flows along the southern edge of the larger 302.6-acre conservation area, providing habitat for fish and a variety of resident and migratory birds and mammals. The Great Land Trust is responsible for project management, including facilitating negotiations and conducting the regulatory due diligence.

Big Canyon Tidal Marsh Restoration – Phase 3

The California State Coastal Conservancy is awarded $1 million to restore approximately 14.3 acres of coastal wetlands and associated uplands in the Big Canyon Nature Park in Upper Newport Bay in the City of Newport Beach. This is the final phase of a multi-phase water quality, habitat restoration and climate adaptation project in the Big Canyon Nature Park. The project will restore and enhance approximately 1,900 feet of tidal and creek channel, 2.8 acres of tidal marsh, 7.3 acres of transitional wetlands and 4.2 acres of coastal sage scrub. The project will restore tidal saltmarsh and establish a riparian corridor that integrates the previous phases of the restoration project. The restoration of the wetlands and sage scrub habitats and improved water quality will benefit numerous listed birds and increase opportunities for educational programming and public access.

Wetlands in coastal watersheds are diverse and complex ecosystems that are vital to the nation’s economy and an important part of the nation’s natural heritage. Coastal wetlands in the United States include both salt marshes in estuaries and freshwater wetlands that extend inland within the coastal drainages. They provide crucial habitat for fish, birds and other wildlife, including breeding grounds, nurseries, shelter and food.

The National Coastal Wetlands Conservation Grant Program is administered by the Service and funded in part by taxes or import duties collected from the sale of recreational fishing equipment, boats, electric motors and motorboat and small engine fuels under the authority of the Dingell-Johnson Sport Fish Restoration Act. The billions of dollars generated through recreational angling, boating, waterfowl hunting and birdwatching benefit communities in the vicinity of wetlands restoration projects.

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How the United States Dollar Dominated the Global Trade Space

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It’s not surprising to anyone that the United States is the world’s leading superpower, from its dominant economy to its powerful military.

In the modern era, the international role of the US dollar is unrivaled.

There are over 180 currencies in circulation worldwide but only a handful play an outsized role in central bank foreign exchange reserves, finance, and international trade like the US Dollar (USD).

But how did the Dollar grow to become the principal reserve currency?

In this article, we’ll look at the USD’s journey to world dominance in the global trade space.

How the US Dollar Became Dominant in International Transactions and The Financial Markets

A reserve currency is a foreign currency held by central banks in substantial quantities.

It’s widely used to conduct international trade and financial transactions, eradicating the costs of settling transactions involving different currencies.

The US dollar has become the dominant currency in international transactions and financial markets for 5 main reasons:

  • The United States Has the Largest Economy in The World

Since the Dollar is used as the national currency for most international transactions involving the US, this gives the Dollar a unique level of liquidity and stability that other currencies lack. 

Additionally, the US dollar is seen as a safe haven currency, meaning that investors often flock to it during times of economic uncertainty. Finally, the US government and central bank, the Federal Reserve, have a strong track record of maintaining the Dollar’s stability, which has helped to build trust in the currency and further cement its position as the dominant currency in international markets.

The United States dollar is the dominant currency in international transactions and financial markets due to its vast economy, with a gross domestic product (GDP) that is larger than the combined GDPs of the next three largest economies. This makes the Dollar a natural choice for many international transactions, as it is widely available and easily convertible into other currencies.

  • The United States Has A Stable Political System

This, along with a well-established system of property rights and contracts, makes it a safe and reliable place to do business. 

This stability and predictability attract investors and businesses from around the world, who use the Dollar to buy and sell goods and services in the United States and abroad.

  • The United States Has A Large and Sophisticated Financial System

The US boasts a network of banks, investment firms, and other financial institutions capable of handling complex international transactions. 

This financial infrastructure makes it easy for people and businesses to buy and sell dollars and to use them to make payments and investments around the world.  

  • The United States Has A Long History of International Trade and Investment

For decades, the Dollar has been used in these transactions. 

Over time, the Dollar has become a widely accepted and trusted currency, and many businesses and governments around the world have come to rely on it for their financial transactions.

  • The United States Has A Strong Military and A Dominant Position in Global Politics 

This gives the United States a certain degree of influence and power in international affairs. 

This has helped to reinforce the Dollar’s position as the dominant currency and has made it difficult for other currencies to challenge its dominance.

A Timeline of how the US Dollar Dominated the Global Trade Space 

For most of the last century, the outstanding role of the USD in the global economy has been reinforced by the size and strength of the American economy, its stability and openness to trade and capital flows, the rule of law and strong property rights.

  • The first documented use of paper currency in the US dates back to 1690 when the Massachusetts Bay Colony issued colonial notes.
  • It wasn’t until 1776 that the first $2 bill was introduced—9 days before independence. 
  • 9 years later, in 1785, the U.S. officially adopted the dollar sign, using the symbol for the Spanish American peso as a guide.
  • The government established the Office of the Comptroller of Currency (OCC) and the National Currency Bureau in 1863. These 2 agencies were charged with handling new banknotes.
  • Centralized printing began at the Bureau of Engraving and Printing in 1869.
  • The U.S. Treasury assumed the official responsibility of issuing the nation’s legal tender in 1890.
  • The Federal Reserve Act of 1913 created the Federal Reserve Bank to respond to the unreliability and instability of a currency system that was previously based on banknotes issued by individual banks. This was the same time the U.S. economy became the world’s largest.
  • Printing began a year after the establishment of the Federal Reserve as the nation’s central bank with the passing of the Federal Reserve Act in 1914.
  • Countries pegged their currencies to the Dollar after WW1, ending the gold standard. The United States became the lender of choice for many countries that wanted to buy dollar-denominated U.S. bonds.
  • Three decades later, the Dollar officially became the world’s reserve currency. Britain finally abandoned the gold standard in 1931, which decimated the bank accounts of international merchants who traded in pounds. By then, the Dollar had replaced the pound as the leading global reserve currency .
  • In WW2, the United States served as the Allies’ main supplier of weapons and other goods. Most countries paid in gold, making the U.S. the owner of the majority of the world’s gold by the end of the war. This made a return to the gold standard impossible for the countries that depleted their reserves.
  • WW2 reshaped the global financial system. When WW2 was coming to an end, global leaders started deliberating on a stable financial system for international transactions.
  • In 1944, more than 700 delegates from 44 Allied countries met in Bretton Wood, New Hampshire, to devise a system to manage foreign exchange that would not disadvantage any country. The delegation decided that the world’s currencies would no longer be linked to gold but could be pegged to the U.S.
  • Thanks to the Bretton Woods Agreement, the U.S. dollar was officially crowned the world’s reserve (global) currency and was backed by the world’s largest gold reserves. Instead of gold reserves, other countries accumulated reserves of U.S. dollars. The US fixed the value of the Dollar to gold at $35 an ounce.
  • Other countries then fixed their exchange rate in tune with the Dollar, making it the central mode of exchange of the system.
  • In the 1960s, the US started racking up huge deficits and running out of its gold reserves, and the government found it too expensive to maintain the promise. 
  • The Bretton Woods system of currency pegs had outlived its usefulness. Japan and Europe had rebuilt their economies, and growing consumer demand made fixed exchange rates unsustainable. This led to fears of a run that could wipe out United States gold reserves.
  • By the early 1970s, countries began demanding gold for the dollars they held. They needed to combat inflation. Rather than allow Fort Knox to be depleted of all its reserves, President Nixon separated the Dollar from gold.
  • This led to the floating exchange rates that exist today. The Dollar’s value was now set by a mishmash of economic and political forces, ranging from the frenetic buying and selling of traders worldwide to central bank decisions.
  • According to the International Monetary Fund (IMF), the Dollar remains the world’s reserve currency today. Central banks hold around 59 percent of their reserves in U.S. dollars , more than double the collective foreign holdings of euros, renminbi, and yen. That makes it the de facto global currency, even though it doesn’t hold an official title.

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  • The Dollar has a huge footprint in offshore funding markets. Here, financial market participants obtain loans or raise debt in foreign currency. Over 60 percent of the world’s debt is issued in dollars, meaning foreign banks need a lot of dollars to conduct business.

dollar

  • In 2015, The Economist revealed that the United States accounts for 12 percent of merchandise trade and 23 percent of the global GDP.
  • In part because of its dominant role as a medium of exchange, the U.S. dollar is also the dominant currency in international banking.
  • The relative strength of the U.S. economy supports the value of the Dollar. It’s the reason the Dollar is the most powerful currency . As of the end of 2020, the U.S. had $2.04 trillion in circulation.
  • The dollar rules in the foreign exchange market. Approximately 90 percent of forex trading involves the U.S. dollar. The US Dollar’s dominance in global FX markets is generally linked to its use as a vehicle currency for forex transactions, meaning that non-US dollar currency pairs aren’t exchanged directly but via the Dollar.
  • Although there are many speculations that the US dollar will be dethroned by the Chinese Yuan, the general consensus is that the US dollar will remain the world’s global currency.

Will the US Dollar Continue to Dominate World Trade?

You may think that after holding the title of “the world’s most dominant currency” for so long and experiencing a series of events that negatively affected the US economy, the USD would be replaced. After all, no king rules forever.

dollar

It’s difficult to predict with certainty whether the US Dollar will continue to dominate world trade in the future. 

Recent developments have the potential to enhance the international usage of other currencies.

Factors such as shifts in political and economic conditions, changes in the global monetary system, technological developments (e.g., crypto assets), and the increasing economic power of other countries could potentially lead to a decline in the Dollar’s dominance.

  1. The Rapid Growth of China

China’s GDP already exceeds United States GDP on a purchasing power parity basis and is expected to exceed United States GDP in nominal terms in the 2030s. 

While the US dollar accounts for the lion’s share of international trade, a small subset of other currencies (renminbi, Euro, British Pound, Japanese Yen, and Swiss Franc) is also actively used in international trade alongside the U.S. dollar.

China has been working to internationalize its currency, the renminbi (RMB), to cut its dependence on the US dollar and assert more control over its own economy. Some economic experts believe that the RMB could eventually challenge the US dollar as a dominant currency in international trade.

However, many experts agree that the RMB will not overtake the Dollar as the world’s leading reserve currency anytime soon.

  1. The Race to Create Widespread Digital Currencies

Over the past decade, the private sector has developed thousands of cryptocurrencies over the past decade. 

A cryptocurrency is a digital currency that uses cryptography for security. It’s decentralized and operates independently of a central bank or government.

While cryptos remain a small, volatile, and niche market, they have gained a significant amount of attention and investment in recent years. Some large multinational corporations like JP Morgan seek to create more stable digital currencies for use on a larger scale. 

Central banks are also exploring the possibility of issuing their own digital currencies, which could also impact the future of the monetary system.

However, the diminution of the USD’s status seems unlikely in the near future. There has been only one instance of a predominant currency switching in modern history —the replacement of the British pound by the Dollar.

The US dollar still holds many benefits over other currencies, such as the stability of the US political system, the large size and liquidity of the US economy, and the depth of US financial markets. It’s also widely used as a reserve currency by central banks and international organizations. 

Therefore, it’s unlikely that the US dollar will stop playing a major role in international trade in the near future.

Conclusion 

Overall, the dominance of the US dollar in international transactions and financial markets is the result of a combination of factors, including the size and strength of the US economy, the stability of its political system, the sophistication of its financial system, its history of international trade and investment, and its military and political power. These factors have all contributed to making the Dollar the most dominant currency in the world today.

 

US retailers’ unusual request to suppliers: Stop sending new products
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US Retailers’ Unusual Request to Suppliers: Stop Sending New Products

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US retailers have so much extra stuff in their stores and warehouses this holiday season that they are telling some of their suppliers to stop sending them products — even if those items are selling well.

The unusual move highlights the magnitude of the excess merchandise that US retail companies are struggling to sell. The average amount of inventory held by the 20 biggest public apparel companies in the US was up 26% to $2.1 billion in the third quarter of this year versus pre-pandemic levels in 2019, according to an analysis by consultancy AlixPartners of S&P Capital IQ data. The figures are unadjusted for inflation. And the average inventory held was up 30% versus the same period last year.

Steve Greenspon, chairperson of the International Housewares Association trade group, said an employee at a major retailer told him recently that executives are instructing buyers to reduce inventory. “‘You could give it to me for free and I cannot take it,’” Greenspon said the buyer told him.

Executives at brands including VF Corp., the owner of Vans and North Face; Guess? Inc.; and Hanesbrands Inc. have talked in their most recent earnings calls about the pullback from their wholesale customers — whether those are small boutiques or large department stores.

“Many of our wholesale customers had warehouse constraints that limited their ability to take delivery of new product during the quarter,” La-Z-Boy Chief Financial Officer Bob Lucian told analysts during a Dec. 1 earnings call.

Supply-Chain Woes

The buildup of inventory is a consequence of supply-chain problems in 2021 that delayed the arrival of many holiday shipments until the spring, just as rising inflation forced consumers to downshift their spending. Companies including Target Corp., Walmart Inc. and others said they were canceling orders earlier this year to try to slow the growth of the piles of poor-selling merchandise. Retailers have also increased the breadth and depth of discounts to stoke demand among inflation-shy customers.

Those measures have helped reduce inventory — but not enough, hence the trend of recent months.

“I’ve never really seen a time before — or heard of a time — when retailers have been cutting back on what sells just because they don’t have the space,” said Paul Cosaro, chief executive officer of Picnic Time, which sells picnic gear and other home goods. “It’s not because of soft sales,” he said, adding the pullback was notable but not widespread.

Cosaro and some other suppliers say demand has been robust for their products when they send the items directly to consumers on behalf of a retailer, a process known as drop shipping. Retailers have been leaning more on some suppliers to handle shipments to avoid having to hold the inventory themselves or delaying orders, forcing suppliers to store the merchandise.

“The cost of money and capital is on us,” said Thomas Nichols, president of Pretika Corp., which manufactures and distributes skin-care devices to retailers. “We’ve been ordering less and yet we still have high inventory levels.” Nichols said he’s producing less in order to enter 2023 with lower inventory levels. Storage has become more expensive as US interest rates have gone up and as demand for warehouse space has outpaced supply.

Sharing Pain

“Typically in times of duress, people try to share pain vertically through the supply chain,” said David A. Shiffman, co-head of consumer retail at Solomon Partners, a boutique investment bank. Retailers have also been grappling with inflation that’s at the highest rate in decades and geopolitical and economic headwinds. “I haven’t seen the confluence of this many obstacles in the path of retailers — and the challenges that the C-suite is facing — in three decades,” Shiffman added.

Some of the slowdown in orders is strategic, Shiffman said. Companies, particularly those that sell fashionable apparel and accessories, “want to make room and secure their orders for spring,” he said.

The International Housewares Association’s Greenspon said that in recent weeks, some retailers have started to replenish certain items sooner than he had expected, a sign that some constraints might be starting to ease. He’s also CEO of Honey-Can-Do International, which sells home items and other consumer products to retail companies.

Overall, the race to clear goods is good news for shoppers. “Consumers are going to continue to get phenomenal deals while all of this is going on,” Greenspon said. He expects the excess inventory levels in home goods to start diminishing within the next five to six months.

The combination of excess inventory, increased markdowns and cautious consumers is putting pressure on some retailers’ profitability. That’s making some companies consider charging consumers for returns as a way to increase revenue, said Melissa Minkow, director of retail strategy at digital consultancy CI&T.

“Return policies got really, really loose as a kind of competitive differentiator over the past few years,” she said. “We’re seeing a big pullback on that.”

Malaysia Sees Trade as Vehicle to Forge Closer Bilateral Ties with US
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Malaysia Sees Trade as Vehicle to Forge Closer Bilateral Ties with US

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Two newly arrived Malaysian diplomats in New York underscore the importance of forging closer ties with the US, and underscore the importance of trade in promoting bilateral ties. 

Amir Farid Abu Hasan, the new Malaysian consul general in New York, who was transferred from the Malaysian High Commission in Dhaka, Bangladesh, says that trade and business would lead to greater cooperation between the two countries. 

Amir, who says that “New York is a different terrain altogether”, sees the crucial role the business-oriented Malaysian diaspora in the US can play in fostering closer bilateral ties. .  

“We work closely with the Malaysian diaspora … there are about 21,000 Malaysians residing in the 17 state jurisdiction served by our consulate general and about 45,000 in the United States.  The diaspora performs an important role in promoting Malaysia’s interests through people-to-people contacts, business and professional relations, etc.  Since many Malaysians in the U.S. are engaged in business and trade, they help forge close business and trade relations with the US which is an important trading partner for us,” the envoy said in an interview with Global Trade Magazine. 

The diaspora’s significance was also evident during the visit of the then Malaysian Prime Minister Ismail Sabri bin Yaakob to New York in Septemer, when a dinner was hosted for the large diaspora in the U.S. with many guests coming from across the United States. 

Besides providing consular services to Malaysian nationals in the country, the consulate general promotes Malaysia’s economic interests, and coordinates with the offices of dedicated agencies in New York like the Malaysian External Trade Corp. (MATRADE) and the Malaysian Investment Development Authority (MIDA). “We cooperate with each other in various ways, including at the federal, state and city council levels,” the consul general said. 

The U.S. which has, traditionally, been one of the top three trading partners of Malaysia, is viewed as a key market for the export-oriented economies of Malaysia and other Southeast Asian countries.  “With uncertainties characterizing the Chinese market, which has been very lucrative for most Southeast Asian countries, the current thinking is not to put all your eggs in the China basket … the mantra is diversification,” explains Thomas Lee, a Chinese-Malaysian businessman who participates in US trade fairs for his company based in Sabah in the Borneo region. 

Indeed, at the networking luncheon he hosted for his counterparts from other Asian countries on Dec. 6 at Malaysia’s permanent UN mission in New York, Amir reinforced Malaysia’s “keen interest” to intensify trading and business ties with the United States. Edward Mermelstein, the commissioner in the New York Mayor’s Office for International Affairs, and his deputy Dilip Chauhan, were among the invited guests. 

Amir’s resolve to improve US-Malaysian bilateral trade and economic ties is also shared by the newly appointed Malaysian trade commissioner, Nyaee Ayup, at the MATRADE office in New York. 

The new trade commissioner worked at MATRADE’s head office in Kuala Lumpur before she was assigned to New York.  Prior to that, she had served as Malaysia’s trade commissioner in the Philippines from 2014-2018.  Nyaee has intimate knowledge of major industries that drive Malaysia’s exports, including electrical and electronics, information technology, green technology, etc. 

A product of the National University of Malaysia, where she studied statistics, Nyaee has come at a time when the U.S. economy is facing a slowdown accompanied by high inflation, prompting many economists and pundits to believe that America may be headed towards a recession.

Nyaee acknowledged in an interview in her office that the US slowdown could pose a challenge “as it may possibly affect our overall exports to the US which is our third largest trading partner”.

But, as she put it, “you can also find opportunity in a critical situation”. Malaysia’s forte lies in having a strong base in such crucial industries as the electrical and electronic industry. The semiconductors product category is an area where Malaysia can use its existing presence in the US to further strengthen its market position, particularly since many American companies are seeking to diversify their supply chains. “This could open up new opportunities for Malaysia in the US market.” 

Another industry in which Malaysia can flex its muscles is healthcare, with international buyers from around the world, including the US, showing interest in Malaysia’s medical devices, as is evident at the annual MEDICA trade fair, the world’s leading event for medical devices held in Dusseldorf, Germany, which attracts large Malaysian exhibitor contingents. 

The Covid pandemic has led to an unprecedented demand not only for PPE products but also for scientific and medical devices.  “The Covid has also aroused interest in many parts of the world, including the US, for medical devices produced In Malaysia,” Nyaee said, adding that the healthcare sector is inherent with strong business potential for healthcare products.  

Nyaee said that trade fairs and exhibitions provided an excellent platform to showcase products; Malaysian companies, she said, were already participating in a number of industry-related trade fairs. 

According to trade figures provided by MATRADE, Malaysia’s 2021 exports to the US amounted to US$ 34.31 billion, up from US$ 26.03 billion in 2020; imports from the US in 2021 amounted to $ 18.02 billion up from $ 16.60 billion in 2020. Malaysia’s exports during the first ten months (Jan-Oct) of 2022 amounted to $ 31.39 billion, up from $ 27.79 billion during the year earlier period, while imports in the Jan.-Oct. 2022 period amounted to $ 19.37 billion over $ 14.81 billion in the previous year’s corresponding period. 

Malaysia’s major exports to the US consist of electrical and electronic products, rubber products, optical and scientific equipment, wood products, etc., while imports from the US consist of electrical and electronic products, chemicals and chemical products, machinery equipment and parts, optical and scientific equipment, etc.

Author’s Bio

Manik Mehta, a New York based journalist, writes extensively on foreign affairs/diplomacy, United Nations, U.S. bilateral relations, global markets, business/trade, shipping/logistics, etc.

 

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Chicken Meat Price in the U.S. Stabilizes near $1,470 per Ton, Remaining Stable in August

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U.S. Chicken Meat Export Price per Ton August 2022

In August 2022, the chicken meat price per ton amounted to $1,471, remaining constant against the previous month. Over the period from January 2022 to August 2022, it increased at an average monthly rate of +2.1%. The most prominent rate of growth was recorded in June 2022 an increase of 18% m-o-m. As a result, the export price attained the peak level of $1,507 per ton; afterwards, it flattened through to August 2022.

There were significant differences in the average prices for the major foreign markets. In August 2022, the country with the highest price was Canada ($3.3 per kg), while the average price for exports to Georgia ($1 per kg) was amongst the lowest.

From January 2022 to August 2022, the most notable rate of growth in terms of prices was recorded for supplies to Taiwan (Chinese) (+4.8%), while the prices for the other major destinations experienced more modest paces of growth.

U.S. Chicken Meat Export Prices by Type

Average prices varied somewhat for the major types of exported product. In August 2022, the highest price was recorded for prices to frozen whole chickens ($2 per kg) and fresh or chilled whole chickens ($1.9 per kg), while the average price for exports of frozen cuts of chicken ($1.4 per kg) and fresh or chilled cuts of chicken ($1.6 per kg) were amongst the lowest.

From January 2022 to August 2022, the most notable rate of growth in terms of prices was recorded for the following types: frozen whole chicken (+12.0%), while the prices for the other products experienced more modest paces of growth.

U.S. Chicken Meat Exports

In August 2022, overseas shipments of chicken meat were finally on the rise to reach 308K tons for the first time since May 2022, thus ending a two-month declining trend. The total export volume increased at an average monthly rate of +1.3% from January 2022 to August 2022; the trend pattern remained consistent, with only minor fluctuations in certain months. The growth pace was the most rapid in February 2022 with an increase of 13% m-o-m. The exports peaked at 338K tons in May 2022; however, from June 2022 to August 2022, the exports stood at a somewhat lower figure.

In value terms, chicken meat exports rose notably to $453M (IndexBox estimates) in August 2022. The total export value increased at an average monthly rate of +3.3% over the period from January 2022 to August 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain months. The most prominent rate of growth was recorded in June 2022 with an increase of 10% month-to-month. As a result, the exports attained the peak of $477M. From July 2022 to August 2022, the growth of the exports failed to regain momentum.

U.S. Chicken Meat Exports by Type

Frozen cuts of chicken (251K tons) was the largest type of chicken meat exported from the United States, accounting for a 82% share of total exports. Moreover, frozen cuts of chicken exceeded the volume of the second product type, fresh or chilled cuts of chicken (55K tons), fivefold. The third position in this ranking was taken by frozen whole chickens (1.6K tons), with a 0.5% share.

From January 2022 to August 2022, the average monthly rate of growth in terms of the volume of export of frozen cuts of chicken stood at +1.4%. With regard to the other exported products, the following average monthly rates of growth were recorded: fresh or chilled cuts of chicken (+2.2% per month) and frozen whole chickens (-17.3% per month).

In value terms, frozen cuts of chicken ($364M) remains the largest type of chicken meat exported from the United States, comprising 80% of total exports. The second position in the ranking was taken by fresh or chilled cuts of chicken ($85M), with a 19% share of total exports. It was followed by frozen whole chickens, with a 0.7% share.

From January 2022 to August 2022, the average monthly rate of growth in terms of the export volume of frozen cuts of chicken amounted to +3.3%. With regard to the other exported products, the following average monthly rates of growth were recorded: fresh or chilled cuts of chicken (+4.1% per month) and frozen whole chickens (-7.4% per month).

U.S. Chicken Meat Exports by Country

China (62K tons), Mexico (57K tons) and Cuba (21K tons) were the main destinations of chicken meat exports from the United States, together accounting for 45% of total exports. These countries were followed by the Philippines, Vietnam, Taiwan (Chinese), Angola, Canada, Guatemala, Georgia, Congo, Haiti and Colombia, which together accounted for a further 35%.

From January 2022 to August 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Vietnam (with a CAGR of +20.9%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for the meat exported from the United States were China ($106M), Mexico ($65M) and Canada ($42M), with a combined 47% share of total exports. Cuba, the Philippines, Taiwan (Chinese), Angola, Vietnam, Guatemala, Congo, Georgia, Colombia and Haiti lagged somewhat behind, together accounting for a further 33%.

Vietnam, with a CAGR of +24.6%, recorded the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Source: https://www.indexbox.io/blog/chicken-meat-price-per-ton-august-2022/

Archives, Global Trade Daily, Imports/Exports, News

U.S. Christmas Decoration Price Declines 10% to $3 per Unit

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 U.S. Christmas Decoration Import Price August 2022

The average christmas decoration price stood at $3 per unit in August 2022, declining by -9.5% against the previous month. In general, the import price recorded a perceptible shrinkage. The most prominent rate of growth was recorded in May 2022 an increase of 5% month-to-month. Over the period under review, average import prices attained the maximum at $3.6 per unit in January 2022; however, from February 2022 to August 2022, import prices remained at a lower figure.

Average prices varied noticeably amongst the major supplying countries. In August 2022, the country with the highest price was India ($3.4K per thousand units), while the price for China totaled $2.9K per thousand units.

From January 2022 to August 2022, the most notable rate of growth in terms of prices was attained by India (+0.7%).

Import Price (USD per unit)

U.S. Christmas Decoration Imports

For the sixth month in a row, the United States recorded growth in supplies from abroad of christmas decoration, which increased by 84% to 377M units in August 2022. In general, imports enjoyed a significant increase. The most prominent rate of growth was recorded in June 2022 when imports increased by 200% month-to-month. Imports peaked in August 2022.

In value terms, christmas decoration imports soared to $1.1B (IndexBox estimates) in August 2022. Over the period under review, imports saw significant growth. The most prominent rate of growth was recorded in June 2022 with an increase of 183% m-o-m. Over the period under review, imports hit record highs in August 2022.

U.S. Christmas Decoration Imports by Country

In August 2022, China (356M units) was the main christmas decoration supplier to the United States, accounting for a 94% share of total imports. It was followed by India (6M units), with a 1.6% share of total imports.

From January 2022 to August 2022, the average monthly growth rate of volume from China amounted to +71.4%.

In value terms, China ($1B) constituted the largest supplier of christmas decoration to the United States, comprising 92% of total imports. The second position in the ranking was taken by India ($20M), with a 1.8% share of total imports.

From January 2022 to August 2022, the average monthly rate of growth in terms of value from China totaled +66.5%.

Source: https://www.indexbox.io/blog/christmas-decoration-price-august-2022/

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Archives, Global Trade Daily, News, Rail

Corn Refiners Association Joins President Biden in Asking Congress to Prevent a Rail Strike

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In response to President Biden’s call on Congress to prevent a freight rail work stoppage that would cripple U.S. agricultural production and supply chains, Corn Refiners Association President and CEO John Bode issued the following statement:

“Like many U.S. agricultural processors, corn refiners are already operating at full capacity for a number of important ingredients used broadly in food and personal care products. Our industry is stretched to the limit, working to deliver ingredients that are used in thousands of products in the grocery store. Even a one-day rail work stoppage would be catastrophic for our industry and the nation’s consumers. For this reason, I’d like to express our appreciation for President Biden’s call for prompt action from Congress and join him in urging our lawmakers to prevent a rail work stoppage of any length.”

CRA is the national trade association representing the corn refining industry of the United States. CRA and its predecessors have served this important segment of American agribusiness since 1913. Corn refiners manufacture sweeteners, starch, advanced bioproducts, corn oil, and feed products from corn components such as starch, oil, protein, and fiber.

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Archives, Global Trade Daily, News

60% of U.S. Small Businesses are Investing in Cash Flow Tools Ahead of the Holidays 

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Kabbage from American Express issued its inaugural Small Business Holiday Report, which highlights the major trends among U.S. small businesses heading into the holidays. Polling 550 small business leaders, the report shows that the businesses surveyed are gearing up for the fast-approaching holiday season by prioritizing their holiday cash flow, strategizing ways to promote employee and customer retention, anticipating economic hurdles, and prioritizing sales through social media. 

Small businesses understand the criticality of successfully navigating this time of year. As we approach this holiday season, they’re making the necessary preparations and adjustments to win the holidays.

Prioritizing Holiday Cash Flow

The survey data illustrates the importance of the holidays for small businesses—especially this year. Nearly one in four (24%) of businesses surveyed reported that their upcoming holiday sales will determine if their business can survive into next year. Understanding the gravity of this period, businesses are prioritizing their health and growth, while closely examining their cash flow.

60% of small businesses surveyed are focused on investing in new tools as they consider their cash flow management and increasing costs. The top tools noted were marketing tools (23%) and payment transaction systems (e.g., line of credit, a business checking account and new payments provider) (20%). Similarly, respondents noted overall business cash flow is the top concern for them heading into the holiday season (32%) followed by budgeting (25%) and inventory management (25%).

The data shows that small businesses are taking action to overcome these cash flow concerns. 21% of respondents plan to take out a small business loan this holiday period, and 32% plan to use the loan to cover costs to support their business, from inventory bills to common cash flow gaps. 

Eyeing Employee Retention and Customer Attraction

To fully capitalize on the upcoming holiday season, 64% of small businesses plan to increase marketing to attract customers. The top two strategies noted were to send seasonally targeted email campaigns (26%) and to offer holiday product bundles (26%). Likewise, 25% of small businesses are budgeting to offer holiday customer promotions and incentives.

While 53% of small businesses plan to adjust their budget for additional holiday expenses, employee retention is also a priority. The top way small businesses surveyed are preparing their workforce for the holidays is by giving holiday bonuses to current and new employees (32%).

Anticipating Economic Hurdles

The data shows that small businesses are predicting the impact of economic hurdles, such as supply chain challenges and rising inflation, throughout the holidays and creating a strategy to navigate them. 

While 64% of respondents plan to prepare their business in some way for the upcoming season, the top way they are doing so is by stocking up on inventory (30%). This supports the data that 74% of small businesses are worried about supply chain issues heading into the season and 25% are diversifying the number of suppliers they work with.

Working to overcome these future challenges, 27% of small business are managing customer expectations and sharing realistic shipping dates to protect themselves from potential supply chain issues. Also, considering their cash flow, 30% of respondents expect to use funds received from a small business loan to purchase additional inventory.

Capitalizing on Social Media

In a progressively digital world, 46% of respondents reported that at least 20% to 30% of their holiday sales will come from online channels. 

Almost half (47%) of respondents reported that at least 10% to 20% of their holiday sales will come from social media channels. Facebook remains a key marketing and customer acquisition channel as 53% cite Facebook as the top social media platform to make the most revenue followed by Instagram, YouTube, LinkedIn, Twitter and TikTok. This is in line with our latest Small Business Recovery Report which found that small businesses are increasingly capitalizing on social media advertising; 47% report it to have the greatest impact on customer acquisition. Out of which, Facebook was also reported as the top platform of choice for advertising, nearly double that of the second choice, Instagram.

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Archives, Commentary, Global Logistics, Global Trade Daily

State of Logistics Report Sees US Logistics Costs Rise To Highest Levels In Ten Years

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For the US economy, inflation in logistics costs was remarkable over 2021 and had the effect of driving up the proportion of GDP absorbed by logistics to levels not seen for over a decade. That is the assertion from the management consultancy A.T. Kearney which has produced the American 2022 ‘State of Logistics Report’ for the Council of Supply Chain Management Professionals.

With the significant proviso that the years 2020 and 2021 were hardly normal for American logistics markets, overall growth in business logistics costs was an extraordinary 22.4% as compared to a compound annual growth rate of 5.8% over the past five years.

Of the different logistics markets broken-down by Kearney the highest increases were seen in areas such as dedicated road freight services, which leaped by 39.3%, waterborne freight transport which increased by 26.3%, and inventory carrying costs which were up by 25.9%. For water transport, the rate of increase is an enormous departure from the longer-term trend which saw costs fall by over 4% a year over the past five years. Possibly this suggests that markets are not behaving normally at present and further, that the return to their previous behavior might be expressed quite violently. However, the violent increase in dedicated contract carriage is a little surprising, given contract logistics has not shown quite the enormous levels of growth seen, for example, in freight forwarding or airfreight.

It should be remembered that the macro-economic conditions of the US economy also have not been normal. With occasional extraordinary restrictions on the functioning of parts of the economy combined with enormous fiscal expansion, growth has been very strong, focussed disproportionately on certain sectors but also, possibly, unsustainable.

The overall result is that Kearney estimates that at the beginning of 2022, logistics accounted for 8% of US GDP, reversing more than ten years of decline. At 8% the US still has a low-cost logistics base which is a considerable strength for its economy. Even other advanced economies will regularly have logistics costs accounting for one or two percentage points higher than this. However, if the 8% figure were sustained for even a few years, it would represent a considerable fall in the productivity of the US.

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Archives, Commentary, Global Trade Daily, International Trade

US Fed Rate Hikes are a World Concern

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If you’re looking for a surefire way to begin the day on a sour note, take a look at your 401K. The stock market has taken an absolute beating as of late. The S&P is down more than 20% since early January while the Nasdaq has shed an eyepopping one-third of its value. Nearly every index is down big and rising prices are putting real pressure on corporate earnings. Amidst all this, however, the biggest issue for everyday folks is inflation. 

Inflation is a thorn in the side of policymakers. When prices rise people feel it. Once that pain sets in, they look for answers. Former President Gerald Ford understood this well, declaring inflation as America’s Public Enemy #1 back in 1974. The bright side is there are some tools in a policymaker’s tool belt to deal with stubborn inflationary cycles. 

First, if the economy has simply overheated, central banks can raise interest rates in the hopes of ensuring more price stability. As the cost of borrowing increases, this tends to reduce demand, and over time can tame rising prices. The US Federal Reserve did just that on June 16th, hiking the benchmark interest rate by 0.75%. In a bubble, this is a US policy measure designed to bring down inflation. But as a global leader in an intertwined, international environment, the US does not exist in a bubble. What happens in the States has major ripple effects globally. 

When the Fed made its move on the 16th you can be sure central bankers and markets worldwide were tuned in. In the days following the hike, the Bank of England also moved to raise interest rates. The Swiss National Bank was next, raising rates for the first time in nearly 15 years. Australian policymakers are eyeing the biggest move their reserve bank has ever made, and the European Central Bank announced an imminent rate hike in July. 

Increases at a global scale combined with supply chain bottlenecks (the war in Ukraine and the Chinese COVID-related shutdowns) will likely handicap global economic growth. Coupled with these hikes is the declining value of currencies. The US dollar has been gaining value fast against currencies such as the euro. A strong dollar makes imports cheaper for US consumers and hurts US exports as their products are in turn more expensive for foreign buyers. 

So are there any winners in this complex environment? Well, if you have money in a savings account, that’s not a bad place to be. When the pandemic began, the Fed dropped interest rates and the average rate for a savings account was in the 0.06% range. With the Fed hike, don’t be surprised to see this tick up to 1% or even more. If you have a considerable about of cash deposited, your bank will likely want to see you stick around so you might even be able to negotiate a higher rate. 

Another area is CDs or I Bonds which are both offering higher returns than before. The long-term hope is inflation rates in the 2% range while keeping unemployment below 5%. This would be considered a soft-landing. Right now, however, that is far from certain.