Logistics management can be rough. But the digital transformation in the supply chain industry is increasingly a quick solution.The freight forwarding industry has caught up with the wave of digitisation that has been pervasive across the rest of the sectors. The traditional ways of doing business are being replaced by modern solutions which have opened up various avenues for a tremendous amount of growth. This transformation has helped shipping organisations keep up with the intense pressure that comes with the increasing demands of today’s customers.Although the entire industry has benefited by migrating to digital solutions, the work of specific individuals has also been made easy — especially a logistics manager, who deals with a wide range of responsibilities daily. Let’s have a look into how adapting the digital ways in the logistics industry has helped a logistics manager. However, before that, let us understand what does a logistics manager do.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px">What Does a Logistics Manager Do?A logistics manager takes care of your goods while they are shipped from the source to its destination. However, how they do the job can often vary. They might focus on transport, or cover everything from booking containers and planning transportation to taking care of all the documentation and customer communication.Whatever the scope of the role, it comes with a range of challenges that call for detailed knowledge of supply chain management and a fair amount of resourcefulness.The ChallengesAt the heart of the daily challenge of logistics manager is the need to keep end customers happy.Every customer may have different shipping requirements. While some might need just a container, others might require the whole package. Whenever asked to book a container or transportation, the logistics manager needs to provide the best rates to its customers, for which he has to hassle a lot. Every shipment requires them to negotiate with the suppliers and provide a separate quotation which might take hours to generate, not the amount of time customers are ready to wait.Additionally, the shipping process involves many documents. Every paper received since the booking of a container needs to be kept track of. With multiple customers, there are chances of paperwork piling up. Misplacing even a single document can lead to delays in the arrival of the shipment, and in some cases, cancellation too. This affects both the business of the customer and the reputation of the logistics manager.Furthermore, customers expect full transparency from their logistics manager. They wish to be aware of the location of their shipments at any given time. To provide them with this information, the managers have to go through much trouble contacting the respective shipping line’s customer services every step of the way. Hence, shipping tracking for the customers is an issue logistics managers face daily, as it is directly related to a customers satisfaction.Lastly, keeping up with the variety of demands has also been troublesome for the logistics managers. Earlier, a customer’s logistics requirements were limited to one form of transportation. Nowadays, that is not the case. Instead of taking care of the goods from port to port, customers demand the logistics managers take care of the products from warehouse to warehouse. This means that they are required to provide trucking services too, which increases the work even more as trucking services becomes a whole new area to be managed.How Can Digitisation Help?Innovative players in this industry have realised that digitisation is providing efficient solutions to many of their problems. Logistics managers have turned to digital platforms like Cogoport to deliver more benefits to customers.With the help of these platforms, logistics managers can provide different freight rates to the customers instantly. The platform can quickly fetch the rates that are not available at the given time. Quotation generation for a shipment, that earlier used to take up to 48 hours is now available to the managers at one click of a button.Digitalisation can also make the crucial task of managing documents easier. A database is provided to the logistics manager where they can save all their documents and access them anytime they want. This ensures then even if a paper is forgotten or lost at any point of time; the manager can find it on this platform, hence securing the documentation process. If ever the customer wishes to view any document, they can always be given access to this database.By providing facilities such as real-time tracking, these platforms give the logistics manager the luxury of offering their customers with the real-time location of their cargo. Furthermore, by the use of certain onboard sensors, the condition of the cargo can also be monitored.Keeping in mind the increasing transportation duties and responsibilities of a logistics manager, digital platforms have made themselves a one-stop for all their needs. Including other forms of transportation such as trucking services has ensured that managers can fulfil every aspect of their order at one single place.What Does this Mean for the Shipping Industry?It can be safe to assume that putting methods of digital shipping into practice has a profound advantage over the traditional methods. Providing customers with a hassle-free platform satisfying all their logistics needs draws a clear blueprint for success. Logistics managers make up only a fraction of people who benefit from this change.We at Cogoport saw the need to make freight shipment easier for everyone and decided to ride this wave of digitisation. Implementing cutting-edge technology to solve the logistics-related problem, we aim to take this trillion-dollar freight industry online. If a freight forwarder is who you are, then we welcome you to do your business the digital way, here at Cogoport.

Going Digital: Journey of a Logistics Manager

Journey from Logistics Manager to Digital Transformation

*Hike in customs duties would prevent the Chinese dumping of goods in India which we have been witnessing for a long time, especially post the USA sanctions on China. The Chinese companies have excess capacities for production and as a result, they are dumping goods in India at very cheap prices. The hike in customs and tariffs would prevent dumping of Chinese goods and will protect the local producers.*

The budget 2020 of India, is considered to be one of the most important in the last few years in the backdrop of slowing growth. <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 government has to now make sure that the budget has policies which ensure inclusive development as well as the growth of the entire economy. The economy is currently facing a demand slowdown and hence the government needs to make sure that consumer sentiment sees a pick up in the coming quarters. First, it could bring into place policies that would promote exports like an export subsidy. This would increase the domestic production which would further propel the growth of incomes in the economy. Secondly, it could reduce imports by taxing them.Additionally, the global growth seems to be reviving which could thus propel our net exports if the right policies are in place. Hence, at this point in time, the import-export sector is one of the most important sectors in terms of the revival of growth. **The Budget for the Import-Export Sector:**

There have been various policy measures taken by the government in order to give a boost to this sector. They are as follows:

## 1. Niryat Rin Vikas Yojana (NIRVIK) will be provided for the upliftment of small exporters


The government, in the budget, proposed the NIRVIK, scheme, also called Export Credit Insurance Scheme (ECIS). Under this scheme, the insurance cover that will be provided to small exporters would be enhanced while on the other hand, the premium for the insurance would be reduced. This, according to the industry experts, is an appropriate and timely step taken by the government. The government is also working towards a simplified procedure for claim settlement.

This step was taken to achieve higher export credit disbursement. Earlier, under ECIS, the Export Credit Guarantee Corporation (ECGC) provides a credit guarantee of up to 60% of the principal and interest amount. However, now under NIRVIK, the insurance cover guaranteed would cover up to 90% of the principal and interest. This includes both pre and post-shipment credit. This is a crucial and a necessary step taken by the government especially due to the timing. This is because at the current time of demand slowdown and uncertainty existing in the markets, there exists a tendency for a rise in payment defaults.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" alt="" width="300px">
Additionally, NIRVIK is expected to increase the affordability and accessibility of credit insurance to smaller exporters while also reducing the liquidity requirements. This is one way to promote the exporters to export more, thereby boosting net exports and consequently domestic production.

## 2. Scheme for exporters will be launched to reimburse state levies to empower falling exports

The Finance Minister (FM) in her budget speech mentioned that a scheme will be launched this year by the government for the exporters wherein the taxes and duties paid by them would be reimbursed. The primary aim of this scheme is to boost falling exports. It has been proposed by the government that the remission of the various taxes and duties levied at the state and the centre would take place digitally. The taxes that are covered under this scheme include value-added tax (VAT), electricity duties and the fuel used for transportation. These have been brought under this scheme as these are not getting refunded or exempted under any other existing mechanism. This is a very important move as a similar scheme earlier proposed i.e. the Merchandise Export from India Scheme (MEIS) was not in compliance with the global trade rules. However, this is in perfect compliance with WTO rules as according to these rules certain state taxes on power, oil, education cess and water are allowed to be refunded.

This move would also encourage the exporters to export more as remission of such taxes essentially implies a reduction in the cost of operations. As a result, the margins of the businesses would go up leading to greater profitability for businesses. Improved profitability would, therefore, enable the companies to reinvest a greater proportion of their revenues thus leading to the growth of the export sector of the country.

## 3. Government targets to aim to increase Fishery exports to Rs. 1 lakh crore by 2024-25:

The government has targeted to increase the fishery exports of the country to at least Rs. 1 lakh crore by the year 2024-25. Additionally, the government has also proposed to increase the production of fishes to 200 lakh tonnes by the year 2022-2023. According to the speech given by the FM, there will also be the promotion of algae growth, see weed and cage culture. The government plans to involve the youth in this industry via 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations. Involving the youth in the fisheries business would, on one hand, increase the fisheries exports while also it would also provide jobs to the youth. ## 4. There has been a hike in Custom Duties for luxury and food products:

One of the key policies in this year’s budget was the hike in custom and import duties on the import goods. The consumers would now pay much more for the imported food and groceries, kitchenware, ceiling fans, shoes and many other products. For some of the products, the customs duties have been hiked to as much as 100%. The main argument behind this move is to promote the “Make in India” initiative and to give a boost to the local producers and the local industries.

As a result of this hike, the prices of the majority of the imported goods from smartphones to electric vehicles would go up, leaving a hole in the pockets of the consumer. However, due to increased prices of imported goods, import substitution would take place. This means that the domestic consumers would now substitute the locally produced goods for imported goods. This would thus, enhance the aggregate demand faced by the local producers, thereby increasing domestic production. This would further help the economy revive the growth that has been missing for the past few quarters now.

Another very crucial point to be noted is that these hike in customs duties would prevent the Chinese dumping of goods that India has been witnessing for a long time, especially post the USA sanctions on China. The Chinese companies have excess capacities and as a result they are dumping goods in India at very cheap prices. This is hurting the local Indian producers. The hike in customs and tariffs would prevent Chinese dumping and will protect the local producers. As a result, growth in domestic production can be expected.

## 5. Announcement by the Finance Minister for the development of Export Hubs:

In the budget speech, the FM also announced that various institutional measures were being taken in order to develop each district as an export hub. The government has proposed an allocation of Rs. 27300 crores for the industry and commerce in 2020-21.
 
## 6. New chapter introduced in the Customs Act to tighten origin norms for Free Trade Agreement (FTA) benefits:

The government has inserted a new chapter in the Customs Act regarding the administration of rules of origin under trade agreements. The inclusion of this chapter now implies that the government would now have the power to suspend and refuse any kind of preferential treatment of tariff in case of incomplete information or verification or non-compliance. Hence, now the importers that plan to claim any preferential treatment with regards to tariffs under any trade agreement would have to declare that “the goods qualify as originating goods and must possess sufficient information about their origin criteria and regional value content”. This is a move to curb the growing imports by tightening the origin norms. This would help in boosting net exports, enhancing local incomes of producers.

## 7. Other Schemes which are empowering the exports to be continued:

Apart from these schemes and programmes, the government has also shown an intention to continue with the existing popular export schemes that no longer comply with the global trade norms. These include schemes like the Export Promotion Capital Goods Scheme (EPCG). Other schemes like the MEIS are subjected to be discontinued henceforth. The government has decided to continue with these schemes for a little while longer. There was another scheme, which was to be implemented from January 1, 2019 which focused on reimbursing some import duties to the exporters. The government had announced in this budget that this scheme would be implemented at some time this year.

## Final Words

Evidently, the government has taken some major steps to ease the export and import business while also making an attempt to boost the net exports by promoting exports and curbing imports. However, it is yet to be seen how the various stakeholders i.e. consumers and producers react to these policies. For example, if the demand elasticity of the goods with higher customs is very low, then rising prices would not lead to a fall in demand. This would thus not only generate inflation within the economy, but also fail to revive the businesses of the local producers. Hence, despite there being significant steps taken by the government towards boosting net exports and growth, proper execution needs to be there in place for the benefits to reach to the targeted population.

Budget 2020: Key Points for Importer & Exporters

7 Key Points from Budget 2020 for the Import-Export Sector

This article was published in Maritime Delta
Source: <a href="https://www.maritimedelta.nl/blogdoorglinokarjadi/" target="_blank" rel="noopener">Digitalisation in Shipping</a>
First of all, I would like to thank Maritime Delta for giving me the opportunity to write about my experiences so far in the Maritime Industry.
As a villager from Hoogezand-Sappemeer I came in touch with shipping as soon as I spent some time in Rotterdam. It didn&rsquo;t take long to get hooked by the City and what drives its success, soccer club Feyenoord, shipping and logistics and the hard-working people of Rotterdam. My first encouter with logistics was with warehousing and trucking; I was intrigued and wanted to be part of this world even though it wasn&rsquo;t my background. I wasn&rsquo;t going to let inexperience hold me back from adventure, so I moved on to shore sea shipping and, eventually, Deepsea where I stayed for a longer period of time.
During the years I was wondering whether this Industry should change, especially when the crisis returned in 2008. My firm, Hanjin Shipping went bankrupt and the industry knew something had to change if we were to avoid losing another carrier. We avoided bankruptcies, but we saw huge consolidations; China COSCO shipping, CMA &ndash; APL and Maersk &ndash; Hamburg Sud (where I worked).
In my time with Hamburg Sud I had awesome colleagues; it was a great carrier and offered great opportunities. However, one day I met Carmit Glik and soon thereafter Flemming Frost and I was sold on their vision of digitized and simplified shipping. In particular, I got excited by the Cogoport platform, which provides a hassle-free way to search, book and track containers. It seemed to me that this was a true innovation &ndash; one which the industry had been crying out for.
At the start of April this year I signed up as one of the first European team members and it has been a fantastic experience so far joining such a dynamically fast-growing business. The company has grown in the space of just a couple of years from handling about three units a month to now close to 10,000 units and with more than 27,000 registered users on our platform.
What drives Cogoport is a passion for the needs of SMEs and a desire to see them grow. It&rsquo;s a genuine part of our DNA. As we grow we&rsquo;re learning more every day; digitization is a new journey for the industry and it&rsquo;s full of challenges.
Shipping and logistics is an important industry and like everything else, is subject to change. Digitization means that the pressure for change is coming from the outside as much as internally. It&rsquo;s happening at a pace many people in the industry can&rsquo;t yet see. For example, a few years ago, no one saw the disruption that technology was going to bring to retailing. Our industry is only beginning to see the impact of new tools but how ready is the average freight forwarder or shipper to take advantage of the opportunities they bring?
At Cogoport we are starting to build a community with our customers and the wider shipping ecosystem to take the leap into a new digital era. Few SME&rsquo;s can make major capital investments or spend time figuring out how their business model need to develop and our platform offers an easy route to better shipping. We can help!
My name is Glino Karjadi and if you want to know more about us, we are happy to help, either in a personal meeting or at one of our network lunch meetings held across the Netherlands.
Business Development &amp; Sales
<a style="color: rgb(16, 155, 197);" href="mailto:Glino@cogoport.com" target="_blank" rel="noopener">Glino@cogoport.com</a>
+31 6 139 21179
<a style="color: rgb(16, 155, 197);" href="https://cogoport.com/signup" target="_blank" rel="noopener">www.cogoport.com</a>

 Glino Karjadi: Digitalisation in Shipping

Digitization in Shipping: Transforming Global Logistics & Supply Chains

Roughly 80% of the global trade functions on trade financing. You may be missing out an opportunity today! Log into our webinar session today and find the perfect opportunity to take your business to new heights!Any business, especially export businesses, needs constant financial support. The challenge lies in access to funding. Exporters keep a wary eye on risks associated with current capital tied up to goods that are headed overseas.<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>And, with limited access to loans and interim finances, traditional funding institutions may not want to risk offering loans or overdraft facilities for such transactions.&nbsp;When exporters can't always afford to wait until their exported products reach their destination before receiving payment, trade financing offers the ideal support. But what exactly is trade finance?Trade finance is the general term for financial instruments and products used by business to facilitate global trading and commerce. Specifically, it provides exporters of any size, with funding without tying up their working capital.&nbsp;So how does trade financing work for you?<h3>Invest in Your Business Growth</h3>Traditionally, a business would need to give investors equity or control over assets in return for financial support. This means either a business will have to tie up assets or accept limitations on their business until the borrowed funds are repaid.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">Trade finance, on the other hand, offers funding without collateral obligations. It also offers freedom from restrictions of equity, associated with conventional loans. As a business exporter, you can capitalise on opportunities in the existing market, without affecting your cash flow. This allows you to gain greater profit from potential investments while diverting crucial funding to business's growth.<h3>Support Your Business's Custom Needs</h3>Traditional funding would finance generic aspects of a business on the overall, but not it's specific needs. This would mean taking on additional and unnecessary funding, with the responsibility of timely repayments and the risk of defaulting on penalties. Trade finance provides financing solutions for selected aspects of a business's needs such as suppliers, processing, transportation, logistics and regulatory stakeholders independently. This allows you to focus on specific aspects of business that require crucial funding, instead of taking on overall general debt.&nbsp;&nbsp;<h3>Secure Funding from Pipeline to Profit</h3>Export businesses that face lengthy trade cycles often experience delays in cash flow often hampering the start of new projects or future deals. The beauty of using trade finance is that it allows an exporter to fund specific opportunities or transactions, as opposed to waiting for sufficient cash flow to pursue them. When a business is sending multiple consignments abroad simultaneously the alternative to working with a trade finance provider would be to turn down orders from willing customers or to hand over a share in the business to someone with ready cash.While these are a few advantages of trade finance, you also need to be <a href="https://www.cogoport.com/en-IN/blogs/trade-finance-risks-exporters-should-beware" target="_blank" style="background-color: transparent; color: rgb(74, 110, 224);">aware of the risks of trade finance</a>. Are you interested to know more? Sign up for our webinar as our experts provide an in-depth analysis of the importance of trade finance and how it can help expand your business for a better tomorrow.

Are You Aware of the Importance of Trade Finance?

Importance of Trade Finance: How It Supports Global Export-Import Business

Something interesting happened this afternoon. At 11:30am I got an e-mail from the school my kids go to saying: Good morning. Earlier this morning there was a power outage and now we are closing the school. Please pick up your children at 12:00 noon. 30 minutes notice!Sometimes I wish there was a Cogoschool platform. By that I mean a platform that manages school logistics, much like Cogoport manages freight. One that informs you timely of changes, and potentially suggests alternative solutions for issues. One that informs other parties involved and gives you the means to deal with the changes.<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 chat"></a>Instead of solving logistics challenges for customers I’m apparently (or a parent-ly) solving logistics issues for a school...Anyway. My highlights from freight and other news this week:<h3>Oil Price</h3>Surcharges have been in almost every Ocean Freight Update I have done these past weeks. As fuel is often an important component of the surcharges:“As the volatility in oil prices continue, there have been different opinions on its future with some predicting a three digit rate in a few years while a few hopeful of a downturn. Banking major Barclays has a rather interesting take on the situation, reasoning out that the prices would fall to around $70 per barrel next year rather climb higher.”→ <a href="https://www.freightwaves.com/news/todays-pickup-panama-city-braces-for-hurricane-michael-6mreh" target="_blank">Barclays predicts oil price to reach $70 next year</a><h3>Pirates of the Caribbean, no, Asia</h3>A total of 64 incidents of piracy and armed robbery against ships were reported in Asia during January-September 2018, a 3 percent increase compared to the same period for 2017, ReCAAP ISC said in its latest report.→ <a href="https://www.marinelink.com/news/piracy-rises-asia-442554" target="_blank">Piracy Rises 3% in Asia</a><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;" alt="Cogoport sign up "></a><h3>The Urge to Merge</h3>There’s always talk about alliances, mergers, and takeovers. Between shipping companies, but also between logistics providers. Now there may be another combination of the two:“CEVA had rebuffed a full takeover bid from DSV, while at the same time giving CMA CGM the option to increase its stake to one-third of its shares.”“An accompanying statement from CMA CGM suggested it may well take up this option, and a fully fledged takeover of CEVA could also happen”“CEVA could be dismantled by CMA CGM, or its own management team, in the same way that Damco is by AP Møller-Maersk Group; if so, then, the freight forwarding assets – mainly contracts and staff – could be spun-off and presented to possible suitors.”→ Market Insight: CEVA and CMA CGM – vertical consolidation the next step?<h3>More on Capacity and Carrier Rates</h3>“The decision by Asia-North Europe carriers to blank or suspend 11 head-haul voyages this month appears to have halted the slide in spot rates on the route, the SCFI component virtually unchanged at $731 per TEU.However, if the 2M Alliance reactivates its AE2/Swan loop earlier than planned – on 5 December as suggested by Alphaliner – then spot rates could fall away quickly.”→ Early AE2/Swan return would add to the pressure on Asia-Europe carriers“If there’s a serious drop of Chinese exports into the US, it will push China to find additional markets. There will be winners and losers but a re-balancing within Asia could be positive overall as more consumer markets develop.”“Any big uptick in intra-Asia container volumes is likely to exacerbate port congestion across the region, however.”→ China-US trade war could be the founder of a feast for intra-Asia box traffic<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><h3>Freight Tech</h3>“MSC has announced it will fit some 50,000 of its dry containers with smart technology over the next few months.”“The carrier said the technology would be provided by Traxens, the French container tracking start-up that has received investment from CMA CGM and more latterly MSC. Both carriers have a seat on the Traxens board.”“The Traxens system has three key elements: first, a tracking and environment-monitoring device permanently fitted to the box, which records data such as GPS position, temperature, impacts, movement, and vibration.”→ MSC opts for Traxens technology to create 50,000 'smart' containers“Rolls-Royce is partnering with Intel to conquer the immense amount of data required to make autonomous container ships a reality”“The data required to facilitate autonomous ships is greater in size and complexity than that necessary for autonomous road vehicles because of the increased variability of the environment.”→ <a href="https://www.supplychaindive.com/news/rolls-royce-intel-autonomous-ships-sensors/539683/" target="_blank">Rolls-Royce teams up with Intel on autonomous ships</a>“Energy innovation in shipping is not confined to main propulsion systems. Norsepower has installed its Flettner Rotor Sail Solution on three ships of different types – one Ro-Ro (roll-on, roll-off), one cruise liner and one tanker – and is documenting the resultant fuel savings.”→ <a href="https://about.bnef.com/blog/planes-trains-automobiles-electric-remake/" target="_blank">Planes, Trains and Automobiles – the Electric Remake</a><h3>Saving the Best for Last</h3>Great news last week: we were recognized as one of the 100 most innovative and disruptive companies in freight! A proud moment for all of us.At the end of last week, our founder Purnendu Shekhar wrote a post about in which he looked back, but also looked forward.“I love seeing their passion every day. Everybody is working closely together to make shipping goods across the globe easier, more efficient, and more transparent.”→ <a href="https://www.cogoport.com/en-IN/blogs/cogoport-recognized-freight-tech-100" target="_blank">Cogoport Recognized in the Freight.Tech 100</a>We were also mentioned in the announcement by Freightwaves:“From on-demand trucking to blockchain, loadboards and freight matching, the list of companies bringing innovative technologies to the freight industry is growing by the day, which makes the 100 that have made the cut to be honored by the FreightWaves Research Institute as part of its inaugural Freight.Tech 100 all the more special.Cogoport is an example. The company believes that booking ocean freight should be as easy as booking a hotel room. Its platform provides instant quotes, helps choose the right ocean carrier, allows for the uploading of documents and manages all shipments”→ <a href="https://www.freightwaves.com/news/trucking/innovation-key-to-making-the-freight-tech-100" target="_blank">From upstarts to traditional powers, the Freight.Tech 100 represents all that is innovative about freight</a>Photo by Tim Easley on Unsplash

Oil Prices, Merger, Rates, and Freight Tech

Freight Industry Top 100: Prices, Mergers, and Rate Trends

March has been quite an eventful
month for world trade.&nbsp;Adding weight to the
murmurs of a US-initiated trade war that could be heard in global trade
corridors since 2017, in the first week of March, citing “unfair business practices”, the US imposed a 25% tariff on steel
and a 10% tariff on aluminum imports from all countries except Mexico and Canada.<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>







Later the European Union,
Argentina, South Korea, Brazil, and Australia were also exempted from the
tariff till the 1st of May. According to a statement released on the
matter, the US may look at setting import quotas for these countries and others
with whom it has security relationship if they are able to present a
convincing case.&nbsp;



The fear of a trade war further
intensified after a US trade announcement on 22nd March, targeting China.
 The US has specifically targeted imports
from China, placing stringent tariffs worth USD 60 billion.&nbsp;In addition to the tariff on steel and aluminum, another 1,300 Chinese products are expected to be included in the tariff list that will be published by the US Trade Department.China on its part
retaliated with a tariff of USD 3 billion on US products.&nbsp; The Chinese have listed 128 products
which include steel pipes, wine, fresh fruit, nuts, dried fruit, and pork.
There is a possibility that China may increase the tariff imposed on US
products.



<h3>Why
is US Imposing Additional Tariffs on China? </h3>



While China
is not the only country that has been targeted, it is one of the countries that
has been most harshly treated. So far. The US has a huge trade deficit balance
with the Asian giant. The other probable reason for the strict action can be
attributed to the “theft of intellectual
property” mentioned in Trump’s statement announcing the tariffs.<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>To provide
some context to the huge tariffs imposed on China, the US Trade Department has also
released a report that highlights China’s aggressive behaviour regarding
acquisition of technology and trade secrets, theft of information and data.
According to media reports, the tariff is believed to help correct the trade
imbalance and warn China to control its own aggressive method of conducting trade.




Whether it
helps improve China’s behaviour or leads to further retaliatory measures remains
to be seen. Going by the communique of the two governments with the global
media, while China does not want a trade war, it is prepared to defend its
position in the event of one. 























<h3>Impact on India</h3>



India has
already been feeling the heat of US trade protectionist policies for a while
now. Decline in off-shore jobs from the US and the latest H-1B visa rules
which could make it difficult for Indian IT professionals in the US to get
their visa applications renewed are cases in point. 



We are also
facing a challenge from the US at the World Trade Center. Referring to the
Agreement on Subsidies and Countervailing Measures (ASCM), the US has raised
doubts regarding the validity of India’s various export promotion schemes.&nbsp;



Although the
extent of impact of the US – China trade war on India is not yet clear, trade
analysts have warned of declining export volumes if the war escalates. 



<h3>Impact on Global Trade</h3>



Trade experts
are divided on the positive impact this will have on the global economy. Some
are of the opinion that countries that have the capacity to offer replacement
or alternative products to the US could benefit from the restrictions placed on
Chinese imports. 



In the
meantime, negative effects of the impending US – China trade war have already
been felt with global markets falling after the tariffs were announced. The
standoff between the two influential economies may also impact global growth rate.




Inflation is
another issue that is being highlighted as an outcome of the US – China fallout.
The price increase would also affect the US market, with imports becoming costlier
and possibly short in supply.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">



<h3>Why Should the Shipping Industry be Concerned?&nbsp; </h3>In all of
this, the shipping industry which is the main mode of international trade may end up as collateral damage. Tariff on imports could result in low demand for those
products – which in turn would lead to a decline in shipping volumes - which would
impact ocean freight rates. For an industry that is emerging from a slow growth
phase, this could be a huge blow. 



At a time when the global economy
has finally started to show signs of revival after the economic recession
witnessed in 2008, a trade war can again destabilise growth. In the long term, a trade war or even a perceived threat of one will create a negative economic and political environment.&nbsp;

US – China Trade War: Impact on Global Trade

US-China Trade War: Impact on Global Trade, Tariffs & Economic Relations

Businesses are becoming increasingly global and complex in nature. In such an environment, a supply chain that is complicated, lacks transparency, and operates in silos is no longer viable. Today, to win and have a competitive edge, organizations need to build an integrated supply chain.<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><h3>How Will Supply Chain Integration Benefit Organizations?</h3>An integrated supply chain will help streamline the business process and provide the following benefits:<ol><li>Improves collaboration: Integration will connect various stages of the supply chain into a single process. This, in turn, will create an environment that will help improve collaboration among the stakeholders of the different processes in the supply chain. </li><li>Reduces cost: Complicated and disconnected supply chains increase the operating costs without adding any actual value to the product quality. Integrating various processes and systems in the supply chain enables organizations to identify and remove unnecessary costs without affecting product or service quality. </li><li>Adds agility: An integrated supply chain is agile. It is more flexible and responsive to unscheduled demands made by the business or changes in the industry. Collaboration among all the functions of the supply chain and timely sharing of data gathered at each touch point is critical to achieve agility. </li><li>Simplifies the process: Large supply chains are known for their cumbersome and varied processes. This is not only time consuming, but also creates confusion among the different departments. Integration brings the entire supply chain on a single platform, thus simplifying the systems and processes.&nbsp; </li><li>Increases transparency:&nbsp;Integration allows for easy access and verification of information and data. It also lets relevant authorities within the system keep track of how the information is being used and monitor critical functions of the supply chain. </li><li>Saves time:&nbsp;Integration saves time spent on the follow up one process-stakeholder needs to do with another process-stakeholder to get the required information on time. This saved time can be used productively by employees in other important work. </li></ol>In addition to the above benefits, in the long run, integrating the supply chain can enable organizations to analyse and understand future needs of the business and start building capacity and business strategy over time.<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><h3>Is this Enough?</h3>No. To get exponential benefits of integration, in addition to connecting an organization’s supply chain, it is also necessary to bring external service providers into the system - i.e. integrate the entire ecosystem in which your business operates.The following sample case study will highlight why it has become an urgent need to integrate not only your internal but also external supply chain system.ABC Auto Parts Pvt. Ltd., manufactures automobile spare parts. They have state of the art manufacturing facilities. Over time, the company has also managed to integrate and create a uniform process across its sales, administration, operations and manufacturing facilities. Within the company, information and processes flow seamlessly and without any hindrances.ABC sells to the local market and also exports its products around the globe. Since the scope of their business is large, they have a separate department for handling the transportation and export formalities.Despite the dedicated manpower, more often than not, there is some glitch or another that creates a delay in their shipments. Issues like - the contracted trucking company’s trucks not arriving on time, spending a lot of time searching for best ocean freight rates in the market, negotiating with forwarders or shipping lines, collecting documents from various vendors, delay in getting customs clearance, extensive follow up with various vendors, conducting a reference check every time a new vendor is added, monitoring the shipments till it reaches the final destination, etc., are common and take up a lot of time of the employees without adding any real value to the organization. Resolving these problems sometimes needs intervention from senior management, thus creating a bottleneck and adding to the delay.<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>ABC Auto Parts is a classic case of a company that is suffering not due to its own inefficiency but that of the ecosystem that it operates in.&nbsp;While as a single organization, the different service providers in the ecosystem may not be inefficient but the diverse platforms used, varied processes, business language, timelines, and priorities make one organization seem inefficient to another.It is in such situations that we realise how important and urgent it is to bring all the participants in the supply chain - organizations and vendors who provide services like transport, customs clearance, packaging, insurance, and tracking of shipments till delivery to destination - on a single platform.<h3>Can it Be Done? </h3>Yes, it can and it is being done by using technology to create a digital supply chain.New and advanced technology has made it possible to build a single platform where all the players in the ecosystem can connect, collaborate, and complete the supply chain cycle. The supply chain ecosystem (manufacturers, marketers, logistics, and other service providers) too has started to realise the benefits of collaboration, communication and real-time exchange of data and information among themselves.<pdir="ltr" style="line-height: 1.656; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">This realisation has added anurgency to create an integrated and digital supply chain. It is no longer a requirement for the future, it is a demand that needs to be met now</pdir="ltr"><pdir="ltr" style="line-height: 1.656; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><a href="https://www.cogoport.com/signup">Register</a> on Cogoport now to experience how a digital freight management platform works and to integrate your organization’s shipping process. </pdir="ltr">

Need of the Hour - An Integrated Supply Chain

Integrated Supply Chain: Benefits, Strategies & Implementation

There are certain things that should be considered when you decide to export agricultural products to Europe. The import of agricultural products to Europe is quite limited due to the temperature and climatic conditions there, which is not favourable to agricultural products. Few of the major imported agriculture products to Europe are Cocoa, tea, spices, soya-bean products, cotton, off-season fruits, vegetables, and coffee. Thus, the European Union gives huge credit to the farming sectors that are involved in agricultural trade with Europe from all over the world.
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Considering the financial strength and deficit of arable land in Europe, agricultural trade with Europe is a golden opportunity for many developing countries. In the data published by Eurostat in 2017, the total value of agriculture products imports and exports between the world and Europe was 275 billion euros. 

However, there are few things to speculate while exporting agricultural products to Europe, mentioned below.

1. Common Agricultural Products Exported to Europe:&nbsp; European agricultural production includes products such as vegetables, grains, fruits, and sugar. A major part of the agricultural products is exported to Europe, which includes dairy products, poultry, fruit, vegetables, and olive. In the data published by Eurostat in 2017, the total value of agriculture products imports and exports between the world and Europe was 275 billion euros.

2. Quality:

The first thing that you should keep in mind is the quality of agriculture products due to the consciousness of the people regarding their healthy eating habits. In 2017, the Vegetables were a major part of agriculture imports to Europe, which was around 48 percent. Foodstuffs and animal agricultural imports were 32 percent and 20 percent respectively. EU food law requires that the competent authority of the exporting country offers guarantees as to the compliance or equivalence with EU requirements for the food of animal origin. The authorities are present to make sure that the third countries should maintain the operational criteria put forward by the European Union, especially Regulation number 882/2004.<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-2.png" width="auto" style="width: auto; height: auto;"></a>3. Importance of Logo:&nbsp; You should keep in mind that the organic agricultural products you want to export to Europe should be produced along with a certified logo. It can be made clear from the fact that people of Europe buy 95 percent of the organic products that have an organic farming logo.

4. Demand in different regions&nbsp;:The places where the consumption of vegetables and agricultural products is more should be targeted, when exporting to Europe. According to FAO data, the vegetable supply is quite high in Southern Europe as compared to Northern Europe. In Northern Europe, the average supply is 195 g per person per day, which is 71 kg per person per year. However, in southern Europe, there is an average supply of 756 g per person per day. The place is to be researched before beginning with the exporting process as the WHO estimates that in more than half of the countries of the European Region, the consumption of fruit and vegetables is lower than 400 grams per day, and in one-third of the countries of the European region, the consumption is less than 300 grams per day.

5. Rules and Regulations:&nbsp;The European health certification and Accreditation Requirements are critical to the success of your export business. Regulation (EC) 178/2002 (General Food Law) is the regulation which sets out the general principles and requirements of European Union food law Health certifications are necessary for the import of agriculture products. Additionally, the quality certificates are also as necessary for marketing the products under a specific label. The establishment of EU rules and standards in the food and the agriculture sector has been happening in Europe for a long period of time. However, in January 2002, changed the scenario and the publication of a general food law took place in which general principles of EU food and agriculture law were established.
6. Importance of Research:

Before exporting, thorough research is necessary about the customer preferences in regards to agriculture products. The most exported items include foodstuff, beverages, and spirits together estimating around 39 % of the products, which has a value of around 31 billion euros. Products registered under chapter 23 estimate around 23 % of foodstuff imports, which has a value of 10 billion euros.
7. Competition in the Market:&nbsp;The competitiveness of the target market is a vital factor to be considered when you think about exporting your product. More than 500 million consumers and 21 million small and medium-sized enterprises (SMEs) can provide opportunities to grow and establish you in the competitive market. 16% of the world’s imports and exports are shared by the members of the European Union.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;">8. Study of Models related to the export of agriculture products:

The model proposed by the International Plant Protection Convention should be studied thoroughly and followed while exporting the agricultural products to Europe. European Union has only one model certificate for exports and one model certificate for re-exports of plant products in accordance with international regulations laid out by the IPPC.
9. Packaging Policies:

The packaging and production laws proposed by the Agricultural Marketing Service (AMS) should also be kept into consideration, otherwise, the EU health certificate will not be granted to the product, and it might get banned from the European market. The method to obtain an EU Health Certificate requires the manufacturers to provide their final production and packing facility registered on the FDA Dairy Plant Reference List of EU approved facilities. There are certain certificates such as dairy EU storage, EU raw milk product health, and dairy EU transit.10. MRLs:

The European Union has established maximum residue levels (MRLs) in order to prevent the risk possessed by pesticides on food products. In case any product contains more pesticides than the mentioned number, then that product will be banned from the European market. It should be kept in mind that European buyers are strict in this aspect and they need information about the pesticides so that health standards can be maintained. 33 to 70 per cent of the supermarket chains ask for legal MRLs from the exporters.

<h3>What Does This Mean?
</h3>
While Exporting Agricultural Products to Europe, it becomes vital to look at the different rules and regulations set up by the European Union regarding agricultural products consumed in Europe. The market analysis and market trends of Europe should also be kept in mind along with the demand and taste of the European people.

Exporting Agri Products to Europe: 10 Key Points

10 Essential Tips for Exporting Agricultural Products to Europe: Quality, Regulations & Packaging

Chinese New Year (CNY) is a Chinese festival that designates the beginning of New Year for the Chinese people as per the traditional Chinese calendar. It is so renowned because it marks the beginning of a lunar new year. The trading between China and the rest of the world is momentously affected during the time of New Year due to celebrations in china.
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## 1. Impact on Transportation

Road Transportation to and from Ports will be motionless during the time of the Chinese new year, which can have a direct impact on the shipping activities of products and goods. You may not be able to get your shipment before one or two weeks of the Chinese new year. It is a strong possibility that the shipment will not move forward and will stay where it is, for at least two weeks after the Chinese New Year. In the recent past, it has been witnessed that some of the road transport shipping services are kept open during the New Years’ time. However, even those are ineffective in making the shipments reach their destination within the deadline. All of this accumulates and affect the freight rate such that it might double.

## 2. Decrease in the Efficiency of Chinese Freight Forwarders companies

Chinese Freight Forwarders companies will not operate at their usual pace over the New Year period. All the ports of china will be busy and congested due to the arrival of the previous orders in the weeks before and after the Chinese New Year. Not only the road transport system but also the airports will be flooded up with large demands of shipping of cargo. The last-minute orders, mainly those orders which will be placed in January, might not be shipped on time. Even if the orders will be shipped, the issue of quality will be associated with them.
## 3. Impact on Customer Authorities

Customs Clearance at Chinese Ports and Airports will give rise to major issues in the shipping of the products. The customs authorities have a role in the import and export of products. Usually, the customs authorities go for shorter breakers of two to three days during the Chinese New Year. However, even that break can increase the processing time drastically.<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>
## 4. Impact on Production

It is not at all astonishing that the production is halted one or two weeks before the Chinese New Years' Eve as most workers leave for holidays to visit their families. If the workers will not be available then the mass production of goods in factories will not take place. The businesses can be obstructed greatly as even the sample orders will not be produced during the Chinese New Year. The shipping of products will also get affected because the situation will not be in the control of even the supplier. In addition to this, the subcontractors will also be at a standstill around a week before the Chinese New Year.

## 5. Impact of long-lasting holidays

The Chinese New Year will cause further delays as the production will also be paused for a minimum of two weeks after it will be over. Astonishingly, the official holidays last only for one week after the New Year, but since this is the only holiday the workers get to visit their loved ones, they usually extend their holidays by a week or two. The main reason behind the slow supply is the shortage of production due to the absence of workers. Due to the deficiency of workers, sometimes the work is even halted for three weeks after the New Year.

## 6. Number of Workers Reduce after the New year Holidays

Getting operations back to normal will take up to a month or more because certain workers do not even return to their prior organisations and employers, and tend to quit or change jobs without giving any official notice, or making any prior announcement. The shortage of workers affects the business in a negative way. Due to the less number of workers, the shipping will be disrupted in the Chinese market. It becomes really hectic for employers and organisations to find skilled and trained workers. As a consequence, they look for new workers and they have to invest cost and time in making the employees comprehend their job. Due to change of workers, the risk of quality issues will be at its threshold. This could lead to a shortage in the number of orders and indirectly affect the shipping process also. The Chinese New Year officially lasts for one week but there will be a large number of factories and businesses that will be shut down for about 10 days before the New Year to give enough time for their employees to travel.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px">

## 7. Difficulty in Placing of New Orders

The placing of new orders will also be difficult, sometimes the orders cannot be placed as most of the factories, and businesses will be completely shut down a week before the New Year. As many of the suppliers and businesses will stop accepting orders, it will become intolerable to place the order at the desired time. Furthermore, the delivery and shipping process will take even more time to reach the destination. Some of the suppliers will accept the orders even during the New Year time; however, they can confront a shortage of products and services. Around 80 million workers travelled by road, train, and plane back to their hometowns during the Chinese new year in 2015. In the late 1970s, economic reforms were responsible for the growth seen in Shenzhen, Xiamen, and Zhuhai.

## 8. Lack of Backup Suppliers

Chinese New Year will also make it problematic for the people to find backup suppliers as almost all the suppliers present in China will not be active during that period. If you operate in some other country and you need goods from the supplier in China in order to manufacture your products, then you might have to slow down or stop your production activities. Chinese New Year will also impact the quality of the products and goods. This is because the quality check management will also be going to their hometowns during that period. In the absenteeism of the quality check manager, the risk of delayed shipment due to bad quality or imperfect goods will upsurge.

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