The movement of goods by the freight forwarding industry - taking the right product to the right place - has been in sync over time. Every experienced stakeholder has carved out a strategic niche (read, a profitability formula) to survive in the industry. With a cut and paste process in place, those shy of transparency and seamlessness in the system have fared even better. The mantra being&nbsp;–&nbsp;the more ‘broken’&nbsp;the process, the better they fare. In a nutshell, the number of service providers mediating the `inefficiencies’&nbsp;have kept growing. There is evidence that too many opportunists among them have led to the glaring inadequacies in the value chain. And so, when the world is actually shrinking to bring a customer and a supplier closer, this value chain keeps expanding. There is no mention of removing the&nbsp;“inefficiencies”&nbsp;at all.This dichotomy points to an emerging storyline that seems inevitable&nbsp;–&nbsp;a new alignment of freight centres may soon alter the geopolitics of the entire game. Suddenly, there appears room for newer players in an industry that has never seen any kind of paradigm shift anywhere – whether in India or anywhere else in the world. Have a longer association with this industry, and you can perceive a potential change in the behavioural pattern of users. A very very human touch industry seems right on the anvil of change. Watch this space for more…. Next: ‘User Behaviour. Change, will you?”

Disruption in B2B – Still a fait accompli?

B2B Business with Cogoport: Streamlining International Trade & Logistics

The Trump tariffs have shaken the international trade industry for the worse. But there is more to the story of the current unimpressive global economy.&nbsp;Following decades of globalisation-led growth, the tide has turned. The World Trade Organization (WTO) reports global GDP growth down from 2.9 per cent in 2019 to 2.6 per cent in 2019 and 2020.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>The ongoing trade war between China and the USA, the two world’s largest national economies, clearly causes pain for exporters. Tariffs and other trade barriers push import costs up, and exporters struggle to find buyers as their products become uncompetitive. Retaliatory actions between the two economic giants have escalated tensions in the past couple of years and contributed to a worldwide slowing of trade.The USA is at its most protectionist in a century, imposing almost 25 per cent tariffs on most of what it imports from China.But reduced export activity is not all because of President Trump’s trade strategy. Other factors have also had an impact on export activity.&nbsp;<h3>It's Not All Tariffs</h3>The Chinese economy is increasingly driven by domestic consumption as its middle class continues to grow and becomes more affluent. China can meet more of its needs from within and become less dependent on imports. And, as Chinese growth has slowed to its lowest for almost 30 years according to <a href="https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reports</a>, its demand for input materials and capital goods has reduced.&nbsp;<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a>Rising nationalism, often fuelled by concerns in developed markets over globalisation, tends to make some markets more insular. Uncertainty hurts trade, so the unknowns around the UK’s expected no-deal departure from the European Union are adding to the slow down.&nbsp;&nbsp;&nbsp;Global trends can be amplified by local tensions too. For example, shipments to Hong Kong, a key Chinese destination, were <a href="https://www.business-standard.com/article/markets/hong-kong-unrest-is-worrying-india-s-jewellers-shipment-down-6-6-119090400867_1.html" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reported</a> to be down by an additional 6 per cent year-on-year in September 2019 because of the pro-democracy demonstrations in the city.&nbsp;Other trends have a bearing too. Globally, the threat of climate change has focused many people’s minds on the distance their food (and other products) travel. A ‘conscious consumption’ movement sometimes described as ‘locavore’ has emerged and gained traction. It boosts the local production of foodstuffs and reduces imports. Food exporters are hit by the sentiment of an increasingly progressive consumer population.&nbsp;<h3>Localisation and in-country investment offer an alternative</h3>As rising wages in China have forced multinational companies to look elsewhere for lower costs, India, Vietnam, Bangladesh and the Philippines have all been winners. And, as these countries experience growth, their citizens join the ranks of the consuming middle classes. Market entry specialists are thriving by offering a bouquet of services - market research and company registrations, tax planning and legal advisory - to foreign investors.Around the world specific forces are having an impact:<ul><li>In India, the Make in India program encourages companies to establish manufacturing in the country.In the European Union, France and Germany are actively encouraging Foreign Direct Investment with policies that make it easier for overseas companies to set up.</li><li>In Africa, Kenya is positioning itself as the strategic gateway to East Africa and hunting foreign investments.</li><li>Mexico is seeking to reduce its dependency on the USA as an export market. The government of Andrés Manuel López Obrador is inviting foreign investment into the country as a staging post to Latin America.</li></ul>Across the world, the terms of trade and investment are morphing.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>Establishing bases in target markets offers a range of benefits. Manufacturers are exempt from import tariffs and may attract tax and other incentives. In-market production brings manufacturers closer to their customers and reduces logistics and other administrative costs.&nbsp;<h3>New Markets Offer New Opportunities</h3>Of course, there are alternative strategic responses to protectionist policies.&nbsp;If they look carefully, exporters may find that there are other demand hotspots, which they’ve traditionally not explored. Rising incomes in so-called emerging markets mean there are millions of affluent consumers driving demand for a host of goods and services. And for new consumers for whom choice has been limited, imported goods—from fridges and fashion to whisky and wines—often hold great appeal as a symbol of their newly-minted status.&nbsp;Across Eurasia, the Belt and Road Initiative (BRI), the largest infrastructure plan on the planet, is rapidly opening up new trade routes by sea and overland. Some are long-lost connections that formed part of the ancient silk route. Others are new networks that form a part of what author Peter Frankopan has dubbed The New Silk Roads.Exploring new markets may offer a hedge against current uncertainty without requiring a fundamental shift in the business model. Other approaches require a greater pivot.As a growth strategy, it requires a different type of business model from the traditional activities of import/export. But, for brave and ambitious exporters who find barriers to trade appearing where in the past none existed, local establishments could be the answer to their prayers.

Global Economy Meltdown - More Than Just Tariffs

Podcast with Lars Jensen: Global Shipping Insights & Future Trends

The French container transportation and shipping company, CMA CGM, has announced a peak season surcharge from India to Onne, Nigeria. Below is the transcript -Dear Valued Customer,In a continued effort to provide our customers with reliable and efficient service, CMA CGM Group wishes to inform its customers of the Peak Season Surcharge update as follows:Scope of application:<ul><li>From India</li><li>To Onne, Nigeria</li><li>Applicable for all cargoes - dry, reefer, out of gauge and break bulk • As from 7th March 2019 (date of loading)</li></ul>Thank you for your ongoing support. Should you have any questions or concerns, please contact us at our customer service.PEAK SEASON SURCHARGE<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/6d2a633a21059113adfab4936fbbec77/Screenshot%202019-02-25%20at%205.30.50%20PM.png" alt="Screenshot%202019-02-25%20at%205.30.50%20PM.png">

CMA CGM Peak Season Surcharge: India to Nigeria

India to Nigeria Peak Charges: What Exporters Need to Know

After holding 2 successful drives for clearing pending GST dues of exporters, CBIC has launched the 3rd edition, from July 16 to 30.The CBIC notification is appended below for your reference and use.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/2cab85f00b556a9f65dd6cf9e90e979c/Press%20Note.jpg" style="letter-spacing: 0.01rem;" alt="CBIC GST Refund Notification" class="center" width="">

CBIC announces 3rd drive for pending GST refunds

GST Refund for Exporters: Process, Eligibility & Documentation

Bilateral trade between India and Pakistan is one of the greatest missed opportunities in South Asia. In August 2019, Pakistan downgraded diplomatic relations with India and ceased trading altogether. The neighbours have turned their backs on any short-term trade benefits. However, the situation wasn’t always so.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>The two countries share a long list of disputes – border control of Kashmir, rights to Indus river water, four wars, financial settlements from the Partition, and most recently, terrorist attacks and counter-offensives. As a result, trade between the two countries suffers. Trade depends on diplomatic and mutually beneficial relations. Political disputes are bad news for bilateral trade.<h3>Latent Potential</h3>The extensively shared land border with road and railway connectivity lends itself to a lot more trade. The shipping routes also contribute. The ports of Mumbai and Karachi are a mere 589 nautical miles through the Arabian Sea, but the political landscape trumps the physical proximity.Disproportionate costs, trade barriers, high levels of informal traffic, complicated non-tariff measures and a long list of product restrictions are contributing factors. The two countries account for 88% of South Asia’s GDP and 86% of its population. Both would benefit from a renewal of trade ties.As of 2018, the potential for reciprocal trade between the two Indus valley nations stands at a whopping $37billion, according to a World Bank report. But in 2017-18, the total value of trade between the two was a mere $2.4billion. This volume accounted for a meagre 0.31% of India’s total trade with the world and just about 3.2% of Pakistan’s global trade, points out India’s pink paper The Economic Times. The missed opportunity is massive.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>So, why aren’t they trading?As of mid-2019, tensions are heightened.In response to the Indian government’s revocation of Article 370 that ended Jammu and Kashmir’s special status, Pakistan severed trade ties with India.But Pakistan’s radical decisions don’t necessarily put it at the losing end. India surpasses Pakistan’s population by over a billion people. The actual effect of this trade embargo on Pakistan’s economy is insignificant when its GDP per capita comes into play.The reality is that both countries are not major trading partners for each other. In comparison with their respective global trade, the inter-Indus trade is insignificant.Pakistan trades heavily with the US, China, Afghanistan and the UK. India, its next-door neighbour, makes number 13 on this list. It also ran a trade deficit with India at a value of $1.6billion at the time of suspension. So, that might be a blow to the economy, but it will only be temporary. At the same time, India trades with the US, UAE, China and Singapore. Pakistan doesn’t even make its top 15 trading partners.India is the rising star of Asia. With the highest rate of predicted GDP growth, rising middle class and smartphone penetration, it should be the go-to destination for any trading partner. India is providing impetus to its economy to deliver on growth predictions. It is busy forging new partnerships with other Asian countries while Pakistan is focusing on strengthening ties with the middle east.One thing is for sure, if the two countries were to set their differences aside and resume trade, they would both walk away as winners.

India-Pakistan Political Dispute: Affect on Trade

India-Pakistan Trade Dispute: Current Issues & Economic Impact

I’m diving straight into what caught my eye this past week. And then I’m going back to preparing my speaking sessions at Multimodal Europe in Rotterdam and the ICT &amp; Logistics fair in Utrecht this week.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;" alt="whatsapp rate search"></a>Global Trade“Bad tidings loom for China, with its economy reportedly slowing far faster than expected. The South China Morning Post reports the situation is likely to spur Beijing into introducing new growth-supporting measures to avoid returning to its “battle-tested” strategy of large-scale monetary and fiscal stimulus. Even so, the news will be particularly concerning for an economy that has yet to experience the full force of its trade war with the US. And with October seeing the fifth successive month of contraction in terms of new export orders, the manufacturing sector is getting nervous.”→ Chinese economy slowing faster than expected – worst yet to comeWhat goes for the air, goes for the seas as well. There may be delays with ships going to or coming from the UK if there is no contingency plan.“The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a “no-deal Brexit,” and to move much faster to bring certainty to three critical air transport issues:<ul><li>The uninterrupted continuation of air connectivity;</li><li>The framework for regulating safety and security; and</li><li>The policies and processes needed for efficient border management”</li></ul>In My OpinionThe last few weeks there has been a lot of talk about the IMO, with slow steaming and decarbonization of fuels at the top of the list. The responses to the various measures they are taking are mixed. The IMO is now further focusing on sustainability efforts for the international shipping community, by attacking the plastic soup. A good initiative in my opinion. Talk about IMO…<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>“The International Maritime Organisation (IMO) is to launch a wide-ranging study on how it can help reduce levels of plastic litter from ships.The IMO said it would study litter levels and port reception facilities for litter and consider new measures, including the compulsory declaration of containers lost at sea.”→ IMO launches initiative to help remove plastic litter at sea“The International Maritime Organization (IMO) has struck down a proposal to slow-roll the implementation of lower sulfur standards for ship fuel emissions, according to multiple reports.”→ <a href="https://www.supplychaindive.com/news/low-sulfur-delay-rejected-IMO/540641/" target="_blank">IMO pushes low-sulfur rules forward despite calls for delay</a>“Efforts to decarbonise the shipping sector have taken a step back after the IMO overturned plans for new design standards.A bid to impose a 40% efficiency improvement requirement on all containerships built from 2022 onwards – based on 2008 standards – was put in abeyance until the IMO meets again next May.”→ IMO 'kills remaining hopes for requiring the building of more efficient containerships'And some interesting insights on the low-sulphur debate in the article below.→ <a href="https://www.freightwaves.com/news/imo-carriage-ban" target="_blank">Global shipping industry loses latest pitch to hold off switch to low-sulfur fuel</a><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" alt="whatsapp rate search" width="302px" style="width: 302px; height: 44px;">Carrier RatesSome numbers from the US market predicting a rise in prices for water transportation this year, and a small decline next year. And there is uncertainty on the Asia-Europe route when it comes to rates.“Looking at the same-month-year-ago rate of increase, we see that the industry’s inflation rate hit 9.2% in September, quickening from 5.5% in June.All segments of the market have contributed with deep-sea prices up 13.8% and coastal and intercoastal also up 13.8%.Added to this, prices for shipping via inland waterways accelerated 3.6% in September following a 0.7% hike in June.With trade wars the new normal, both seaborne export and import trends are slowing.We now forecast the water transportation industry’s average annual prices to increase 4.7% this year and decline 0.4% next year.”→ <a href="https://www.supplychain247.com/article/price_trends_pricing_across_the_transportation_modes" target="_blank">Price Trends: Pricing across the transportation modes</a>“The Asia to North Europe component of the Shanghai Containerised Freight Index (SCFI) recorded a 4.7% uplift in spot rates this week to $761 per teu, underpinned by a raft of cancelled October headhaul sailings by carriers.Compared with the same week last year, container spot rates on the route are approximately 2% higher, but the profitability of the container lines is being severely dented by a year-on-year 43% hike in bunker costs, which they have been unable to recover from shippers.”→&nbsp;Cancelled sailings prop up Asia-Europe spot rates, but demand looking uncertainSome issues for inland shipping as well on the Rhine, as the waterlevels are very low.→ Barge operators hit by new charges as Rhine water levels sink to new lowsLogistics TechWithout data, there is no analysis and without analysis there is no insight. There is a lot of new technology available to capture and process this data. Duth ports and the Dutch government are seeing the potential, as you can read in the article below.“The Dutch government recently announced their plans to spend an extra annual €64 million on big data training for police, so in the future, they might have a better understanding of what to expect from data analysis.”→ <a href="https://thenextweb.com/news/police-iot-ports-crime" target="_blank">Police are outsourcing criminal-catching to IoT in Dutch ports</a>The Canadian government is experimenting with blockchain technology.“The Canada Border Services Agency is taking steps to streamline and secure the flow of shipments into the country by piloting TradeLens, a new blockchain-enabled shipping solution developed by IBM Corp. and A.P. Moller-Maersk, the companies said this week.”→ <a href="https://www.dcvelocity.com/articles/30180-canada-border-services-agency-to-pilot-blockchain-shipping-solution" target="_blank">Canada Border Services Agency to pilot blockchain shipping solution</a>I love pizza and I love tech. Pizza Hut has combined these in a great way. How about some robot-cooked pizza? Prepared en route and delivered to your door by that same robot? Bring that to Rotterdam!→ <a href="https://www.supplychaindive.com/news/Pizza-Hut-robotic-delivery-truck/541172/" target="_blank">Pizza Hut unveils robotic delivery truck that bakes pizzas en route</a>Photo by&nbsp;Cameron Venti&nbsp;on&nbsp;Unsplash

Global Trade, IMO, Freight Rates & Logistics Tech

This Week in Ocean Freight (02/11/18): Global Trade, IMO Updates & Freight Rates

One necessary step to grow a business is to expand from
the home market, especially in a world where globalisation has taken over, to international markets to such an extent that one finds Brazilian coffee in the cup of someone
who is driving a German car somewhere in the United States. These global links
are supported by the phenomenon of international trade (export
and import).And, to excel in international trade, it is necessary to
have an in-depth understanding of international business and the shipping process.
While the business scenario and shipping regulations would differ from country
to country, there are some common errors which all exporters must be aware of
and try to avoid if they want to build a global business.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>Here are 5 common mistakes that exporters make and tips on how to avoid them:&nbsp; 1. 
Overlooking a Promising Foreign
Market:&nbsp;A promising foreign market
is - a country that not only has the highest demand for the export
product, but also one with a favourable business environment. Knowing which
foreign market is commercially viable, is the most basic rule of business. But
many exporters, especially those new to the trade, fail to recognize these
markets.In order to avoid this
mistake, exporters should try to focus on a few particular ideal markets
instead of catering to several countries at once. Streamlined efforts and focus
are the keys to achieve success in export business. Exporters should follow a “structured
research” approach to identify the best target markets, conduct easy and
inexpensive “secondary research” to short list the best markets, and then eliminate
those which are expensive, time consuming, or offer the least profit/return.
This process will help finalise a set of countries with the most feasible
market for the product.2. 
Not Localising
the Product:&nbsp;Exporters make the mistake of entering new foreign
markets without conducting a thorough market research, which may create marketing
problems and lead to choosing wrong distribution channels.Exporters need to
understand that foreign customers may not accept their product as-is and
delivered exactly like it is all over the world with no customisation. Before launching
the product in a foreign market, it is essential to research the local market, understand
the customers’ preferences and localise the product to suit the needs of the target
market. A well thought-out sales and marketing strategy that takes into
consideration the above points will help connect with the buyers in the new
market and create a strong foundation for the brand.3. 
Neglecting to Conduct a Background Check:&nbsp;A trustworthy business partner with a good
reputation is essential for establishing a base in a new market. Often, in the
excitement of going global, exporters neglect to conduct basic due diligence or
background checks of their international business partner. This negligence can
lead to financial, market, and even reputation loss.To
avoid entering into a business agreement with a disreputable company, exporters
must themselves carry out a background check or hire an agency to conduct one
on their behalf.4. 
Failing
to Insure Goods:&nbsp;In
international logistics, accidents happen. Ships can crash, catch fire, or sink;
goods may get stolen or damaged. These incidents and accidents result in
financial loss and damage to the product.Exporters can avoid or at
least minimize the loss arising out of transportation by getting an adequate
insurance cover for their goods. They can either approach insurance providers
themselves or discuss available options with their freight forwarders. Before
choosing an insurance policy, it is important for exporters to discuss
insurance requirements with the importer, understand the terms of the policies
and what they cover, and find out if any special insurance provisions are
required for their product.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a>5.Picking
the Wrong Service Providers:&nbsp;There are many parties involved in
an export process. Some of the important participants are – banks, freight
forwarders, shipping lines, and intermodal transport providers. The successful
completion of an export shipment depends on how all the participants carry out
the process assigned to them. It is important for an
exporter to pick efficient and trustworthy service providers who can cater to
his business requirements at a competitive rate and in the least possible
amount of time. 






If you are having
difficulty in finding the right and trustworthy service providers, just <a href="https://www.cogoport.com/signup">sign
up</a> with <a href="https://www.cogoport.com/">Cogoport</a>.&nbsp;At Cogoport,
you will not only get access to reliable service providers, but also get the best possible rates and customized shipping solutions.

5 Common Export Mistakes to Avoid

Five Exporting Mistakes to Avoid: Tips for Indian Exporters

With the increasing population, food production demand also increases. Agricultural packaging helps farmers and the exporters to deliver food in the handiest approach without any loss.


Packaging prevents unnecessary waste post-harvest and during the processes of production, storage and transportation. It ensures short and long-term stability between the farmers and consumers.
<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a><ul><li>
Packaging for agricultural export business:
The packaging is rising an essential element for your export operation, impacting the safety, cost, communication and even marketing of your agricultural products. Agricultural packaging has gained immense popularity across the world. According to Statista, the global agricultural packaging market is expected to reach [$5.02 billion by the end of 2023](https://www.statista.com/statistics/916723/global-agricultural-packaging-market/). If you want your agricultural products to reach different horizons across the world, you should consider the features, importance and benefits of packaging.

- Safety of agricultural products
 
- Accurate handling instructions 
</li><li>
Importance of packaging in the export business:&nbsp;From the contractual point of view, you are responsible for the packaging of agricultural products such that it withstands the transportation process. If the packaging is damaged in the port of destination, then the handling of the cargo is not considered responsible.

Responsibility of seller: According to the new edition of [Incoterms 2010](https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/), the seller will be responsible for any damage happened to the products during the journey. 
</li><li>
Security of goods: 
The primary purpose of the agricultural packaging is not limited to protecting the cargo during the international logistic process. The packaging is also an essential element of the product’s marketing, as it conveys a strong image of the company in front of the consumers. 
</li><li>
Cost saving:
Packing affects the cost of your products. The packaging must adapt to the cargo units deployed to optimize the use of trucks, containers and the other form of transportation. 
</li><li>
Storage and organization: 
Packages end up taking more space when not compatible with pallets and thus, waste up to 20% of the container’s space, adding 40% extra cost to in the price of your product.</li></ul><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a><ul><li> 
Handling information: 
The packaging is also essential in terms of the instructions and other handling information. How the carrier, individual and the cargo handle the products will rely on the knowledge of the packaging. The information on the boxes, help the transporters to stack the boxes. The boxes could be stacked upside down, damaging the products when there is no instruction on the packaging. 
</li><li>
Packaging and labelling functions:

In accord with the importance of packaging, the packaging must have these functions to facilitate the transportation process without any hindrance:

- Protect your cargo during international logistics
 
- Communicate your brand with the consumers
 
- Your essential constitutional element of marketing
 
- Reflects your customer’s cultural value
 
- Instruct carriers how the package should be stacked or handled</li></ul>How does packaging boost your agricultural exports?

You should consider the below fundamentals to boost up their exports across the world.
1. Protection of goods:
For agricultural goods, protection of products is necessary, and as the exporter, you have to select the right packaging material to prevent damage. You can request samples to test the packing materials and packaging. The packaging should withstand the transportation process.

The means of transportation also plays a vital part in packaging as you have to select the material based on the transport used and the distance covered by the transportation company. It is necessary to use different kinds of material to target different markets.

2. Business communication:&nbsp;The packaging is something that communicates the product’s features to its buyers, making it the essential marketing tool for exporters. For agricultural products, you can instruct the consumers about the ingredient or can even warn them about the allergies.

Before initiating the export operation, preferences of the consumers in the target market should be assessed to ensure that the package meets the consumer’s expectations.

 3. Indicating the size of the package:&nbsp;The agricultural packaging and its material must be optimized to maximize the use of cargo units. The packaging should be designed in a way that a maximum number of packages fit in each box. The size of the boxes should be considered for pallet use.

EUR-Pallet is the most commonly used pallet across the world, which measures 1,200mm X 800mm X 144mm, which is approximate to 47.2inches X 31.5 inches X 5.7 inches. With these dimensions, the exporters can ensure maximum utilization of the space. It would help if you considered these calculations before packing your agricultural products.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>
4. Information for handling:&nbsp;The package must indicate how it is handled. The agricultural exporter must mention how the product should be processed on the boxes. They can print indications along with the symbol like “this side up,” maximum stacking height,” handle with care” and many others.

All these indications should be listed outside the packages so that the carrier can transport them without damaging the products. Besides, it would help if you also considered other indications which are mandatory in your company’s product include precautions regarding the exposure to sunlight, damp and extreme temperatures.

5. Reflects your customer’s cultural values:
The information on the packaging should reflect your customer’s cultural values. No matter where does your customer resides, you should consider the local language and other aspects of the information.

In Turkey and Austria, green is well-accepted colour, while in China, red and yellow is accepted because of the royalty in its culture. You should conduct proper cultural analysis before designing your package to ensure and enhance the cultural values of your potential customers.

## What does this ultimately mean?

A right package can not only protect your shipments but also foster sales and increase the perception of value among your customers. Thus, packaging an important aspect which cannot be ignored to boost up the agricultural export across the world.

How Packaging Can Boost Agricultural Exports

How Packaging Boosts Agricultural Exports: Safety, Cost Savings & Market Impact

Finagle’s Law,
a popular version of Murphy’s Law, which says that “Anything that can go
wrong, will”, is probably the best way to explain the importance and
necessity of freight and cargo insurance. A few recent examples
of accidents or incidents which resulted in huge cargo or marine claims are:<ul><li>The&nbsp;<a href="https://en.wikipedia.org/wiki/2015_Tianjin_explosions" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Tanjin Port explosion</a>&nbsp;(2015) caused due to hazardous cargo could result in a loss of USD 6
billion. </li><li><a href="https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-causes-turmoil-in-global-sea-freight" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Bankruptcy declaration of Hanjin Shipping</a> in September 2016 resulted in
huge cargo claims. </li></ul>Natural
calamities like earthquakes, floods, and hurricanes also form a major
part of marine claims.While all
transportation and allied service providers aim to provide safe transport of
goods from one place to another, the possibility of damage, loss, or delay
still remains. Damage or loss to cargo can be either due to natural causes or due to
breakdown of or accidents on the transportation vehicle (train, truck,
airplane, ship).A good cargo
insurance, to an extent, helps protect the shipper against all the things that
can possibly go wrong during transportation. It helps minimise risks and losses due to accidents, natural calamities, and damages during transportation.
It works as a shipper's lifeline till the goods reach the designated destination
and are handed over to the specified recipient as per the Bill of Lading.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>Of course, this
protection comes at a cost and only if the shippers have acted in good faith and
have been prudent!However,
choosing a marine insurance cover is easier said than done. There are quite a
few combinations to choose from and too much fine print to read and understand. But, if a shipper keeps the following points in mind, then it becomes slightly
easier to choose a good cargo insurance policy.Sale
Agreement:&nbsp;The sale agreement plays a major part in deciding which party to the
sale is in charge of getting the cargo insured. In sale agreements where the
seller is responsible only for paying for the cost and freight (C&amp;F) or if he is responsible only for transporting the
cargo till the port of loading (FOB), then the onus of getting the cargo insured lies
with the importer/buyer. In cases where the sale agreement is cost, insurance,
and freight (CIF), then the responsibility of getting the marine
insurance cover rests with the exporter/seller.This point is
important as it determines which party to the transaction will be responsible for
arranging the insurance cover and how the claim process will be handled in case
of any damage or loss. Risks
Covered:&nbsp;The kind of risks and the extent of coverage is the one of the most
important points to consider when selecting a cargo insurance policy. The shipper should gauge the kind of risks that he may have to deal with and then
accordingly purchase an insurance policy that will help cover those risks. Frequency of
Trade:&nbsp;This is another aspect that can influence the choice of marine insurance
cover selected. If it is a one-time consignment, then the shipper can consider a
policy for that specific shipment only. If he has regular shipments, then he
can go for an open policy or an open cover.Arrangement
with Freight Forwarder:&nbsp;Though shippers are always advised to take
a policy for their own shipments, they can also check with their freight forwarder
for insurance cover options. Here, the coverage might be lower than what they would get if they bought their own cargo insurance policy, and
hence may not be sufficient to cover the losses in case a claim arises.Multi-modal
Transportation and Storage:&nbsp;If the transit requires multi-modal transportation,
then while choosing a cargo insurance policy, the shipper must also confirm and
check that the goods will be covered in all modes of transportation – rail, road,
air, and sea and while in storage during the transit time period.Assess Add-ons
Required:&nbsp;There are certain risks that may not form a part of the insurance policy
and may need to be covered separately. The party in charge of arranging for the
insurance cover must assess all the possible risks involved during transit and
the time in between with respect to location, transhipments, storage, and
political conditions of the countries involved in the trade. For example, if
one of the countries involved in the trade is going through riots or strikes
and the region falls on the route of the transportation – then it would be
prudent to get a cover against this specific problem. It may increase the
premium payable, but it will ensure that if the cargo suffers any damage due to
an unstable environment, the losses will be covered.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">Once there is
clarity on the above points, and the shipper has all the required information,
he can select from one of the following policies (most common types of cargo
insurance available in India) to insure his cargo. Specific Voyage
Policy: This
policy covers only one specific shipment. It is applicable only till the time
the shipment reaches the specified destination. As mentioned earlier, it is
ideal for shippers who do not export/import goods regularly.Open
Cover:&nbsp;Generally, a yearly cover is offered by the insurer to the shipper with
an understanding that the insurer will provide marine insurance (separate
policies) to both import and export shipments. Under this cover, a separate policy
for each consignment is created and a premium is collected for that specific
shipment.Open
Policy:&nbsp;This insurance policy is not applicable for international
transportation. It can only be taken by shippers who are transporting goods
within the country. It is generally an annual policy and covers movement of
cargo declared during the policy period.Annual
Policy:&nbsp;This type of policy is applicable only for goods being stored or shipped
from a specific place and where the title of goods belongs to the shipper (exporter/importer) who has taken the policy.While insurance
provides a safety net for the shipment, it comes with a set of rules that need
to be followed. If there is any instance of negligence from the insured, then
the insurance policy can be declared to be void.Shippers need to keep the following points in mind to get maximum benefit from their
insurance policies:<ul><li>Provide the correct details of the shipment with respect
to weight (net and gross), number of packages, nature (perishable, hazardous or
dangerous cargo). </li><li>Provide the correct details of the final destination and
the end recipient of the cargo. </li><li>Insure that the packaging of the cargo has been done
keeping trade guidelines and safety of the product in mind. </li><li>Insure that all the required labels and markings have
been put on the package. </li><li>Insure that all additional handling instructions have
been provided to the carrier and its agents. </li><li>Any other information that may have an effect on the
insurer’s decision to insure the cargo and give the insurer’s ability to
understand the kind of and extent of risk they are undertaking by insuring the
cargo. </li></ul>It is important to note that all
marine insurance claims are verified with the information provided at the time
of taking the cargo insurance.

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