Standards are both important and difficult to achieve when it comes to logistics. There are so many parties involved. The importance of standards becomes apparent when we look at some of the best-known standards in the industry. Take for example the shipping container. Shipping containers have been used since the end of the 19th century, but they weren’t standardized until 1968 when the TEU was established. The same goes for wooden pallets. And still, there are many variations.<h3>Standardization. IT’s essential.</h3>With the digitalization of freight, the importance of IT standards has become apparent as well. There are many different IT systems used in the procurement, production, and distribution of products. Many of these IT systems (should) communicate with each other, which means they need to be connected. As many of these systems have their own “standards” the integration of these systems is challenging, to say the least. Digitalization has enormous potential, but all systems should be easily interconnected.<h3>Digitalization, standardization and interoperability</h3>I was glad to learn that 5 of the largest ocean carriers have announced the launch of a digital standards association that intends to achieve "digitalisation, standardisation and interoperability" in the container shipping industry. IT executives from CMA CGM, Hapa-Lloyd, Maersk, MSC, and ONE want to create common information technology standards, which are to be openly available to the whole industry.<h3>No worries, we have the platform</h3>The new association is non-profit and aimed at decreasing red tape and increasing transparency. They have also clearly stated that they do not intend to develop or operate any kind of digital platform. As a digital platform that is designed to make the ocean shipping process more efficient and transparent, Cogoport is looking at these developments with interest. Red tape and lack of transparency are some of the key issues in moving freight that our founders want to solve.<h3>Get on board, please!</h3>It’s good to see carriers are starting to work together to solve some of the inefficiencies in our industry. We hope more stakeholders will join this initiative, as standardization and interoperability will increase the potential of the digital landscape that keeps growing, moving closer to the efficient, transparent and free movement of freight across the globe.Let’s face it, it has been long overdue. And I think they should expand their joint effort beyond IT.<h3>Money on the Table</h3>Carriers should not only be working together on IT standards, but they should also work together on managing empty containers. Today carriers each have their own proprietary container pool. Some interchange takes place, but there is a lot of money left on the table.Empty containers have to be repositioned and there is nothing much we can do about that. The number of containers that need to be repositioned can be influenced though. What is needed is a shared pool of containers. Currently, shipping companies are moving empty containers from a yard in location A to their customer in location B, while a competitor is shipping an empty container from a yard near location B to their customer near location A. And this is not an exception.<h3>Location, Location, Location... and Visibility</h3>Visibility is key, though. Shipping companies need to make sure they know where containers are. Location data should be correct and up to date for empties. Sharing them can then prevent unnecessary movement of these empties and customers can be sent a container from the closest yard that has one available.This will decrease the number of miles empties need to be shipped, while also increasing the number of times a container can be loaded and shipped in a year. Everybody wins.

IT Standards? How About Pooling Empty Containers!

IT Standards for Empty Containers: Improving Efficiency in Shipping

Launch
of a New Consolidated Shipping Line - Ocean Network Express1st of April 2018 marked the entry
of another large container shipping line – Ocean Network Express (ONE), formed
by integrating the businesses of NYK, MOL, and “K” Line. 



The three companies have jointly invested USD 3
billion in the integrated business with 38 per
cent of the share held by NYK, and the remaining 62 per cent split equally between MOL and “K” Line. 



According to a press release, through the
joint venture, the Japanese shipping lines will be able to provide better services,
offer competitive rates, and optimize the utilization of their shared fleet of
230 ships having a carrying capacity of 1,440,000 TEUs. It will offer services
to 100 countries, covering more than 200 major ports via 85 services.



An&nbsp;<a href="https://www.seatrade-maritime.com/asia/maersk-tankers-splashes-out-300m-nine-mrs-shi?highlight=Ik9jZWFuIE5ldHdvcmsgRXhwcmVzcyI">article</a> in Seatrade
Maritime News mentioned “low oil prices, sluggish cargo demand, oversupply
of trade capacity, and container freight rates at historic lows” as the reason
given for consolidation by MOL, NYK, and “K” Line. According to a&nbsp;<a href="https://splash247.com/ocean-network-express-jeremy-nixon-ready-april-one/">report</a> in The
Loadstar,&nbsp;the newly formed company will be able to save costs amounting to USD 440 million in the first year of operations and almost double the savings
going forth. 



While we will only know at the end of the
fiscal year how much of the estimated cost saving target has been achieved and
whether the investment of USD 3 billion translates into improved bottom line, for
now the merger seems to be working for the Japanese shipping giants. After the
consolidation, ONE has emerged as the 6th largest container shipping
line in the world. This puts it in line with the current reigning companies in container shipping - Maersk, MSC, CMA CGM, COSCO, and Hapag-Lloyd. 



Other major mergers and acquisitions (2014 –
2017)



The shipping industry has seen many strategic
mergers and acquisitions throughout its history. This trend has re-emerged
after a hiatus of almost 7 – 8 years. In fact, since 2014, the industry has
been witnessing a flurry of business consolidations in the form of joint
ventures, alliances, mergers and acquisitions led by some of the top global
container shipping lines.&nbsp;Some of the major mergers and acquisitions during this period that have created new synergies in the industry are:

2014&nbsp;<ul><li>Merger of Hapag Lloyd and CSAV's container business </li></ul>

2015&nbsp;<ul><li>Hamburg Süd's acquisition of CCNI’s container business </li><li>PIL's acquisition of Marina
Express Lines </li></ul>



2016<ul><li>Merger of Cosco Group and China Shipping. The merged entity has been rebranded as&nbsp; Cosco Shipping Holdings Co. </li><li>CMA CGM SA's acquisition of Neptune Orient Lines Ltd. </li><li>MOL, NYK and ‘K’ Line
announce business integration. Ocean Network Express (ONE), the new entity formed from the merger starts its operations from 1st April, 2018. </li><li>Maersk Lines' acquisition of Hamburg
Süd. Hamburg Süd continues to operate as a separate brand after the acquisition.&nbsp; </li></ul>







2017&nbsp;<ul><li>Hapag Lloyd's acquisition of UASC </li><li>Cosco Shipping's offer to buy OOCL. OOCL to continue to operate as a separate brand after the acquisition.&nbsp; </li></ul>

Source:
joc.comAccording to industry analysts, this is an effort by shipping lines to protect market share, enter new markets, optimize space utilization, and control operating costs. <pclass="msonormal">New Ocean
Alliances – Another effort at business consolidation</pclass="msonormal">In 2017, the industry also witnessed a
restructuring of the Ocean Alliances. Partnerships that emerged after this reorganisation have further consolidated the industry,
putting a major chunk of the market share in the hands of a few select
container lines. Currently, according to the rankings on Alphaliner, more than 80 per
cent of the container shipping market is controlled by the top ten shipping
lines. Among them, 68 per cent of the
container business is controlled by shipping lines holding the first 6
positions namely – Maersk, MSC, CMA CGM, COSCO, Hapag-Lloyd, and ONE. <img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/6d0d10d31e8665df819de4dd0e84867a/Cogoport_M%26A%20Article_R1-02.png" alt="Container Shipping Line's Market Share" class="center" width=""> <pclass="msonormal" style="text-align:justify">Source:
Alphaliner.com</pclass="msonormal">Impact
of M&amp;A on the Industry While world markets and other industries seem
to be expanding globally with new players entering the markets, the shipping
sector seems to be doing just the opposite. Looking at how the industry is consolidating,
it raises concerns regarding survivability of smaller or independent
operators in the business. Would they eventually be driven out of business – by
way of acquisition by a market leader or by becoming uncompetitive like Hanjin
Shipping in 2016? This trend also raises a question on the market
structure of the industry post all possible alliances have been formed. Will
the business integration lead to trade route monopolies or at best an oligopoly
market, thus limiting options available to shippers?Shipping lines are citing reducing operational
costs and utilising overcapacity as the main benefits of
combining their businesses.&nbsp;But, will these mergers and acquisitions really help them
improve their operating margins, deliver the profits that the container&nbsp;shipping&nbsp;industry has been
striving to achieve after the global recession in 2008? &nbsp;A case in point is Hapag Llyods' acquisition of CSAV and UASC. The company’s merger with CSAV in 2014 and its
acquisition of UASC in 2017 has started to show results. An <a href="https://shippingwatch.com/carriers/article9680626.ece">analysis</a> by
SeaIntel Maritime Analysis, shows that the German Carrier has lost out on
efficiency by 11% with regards to volume of containers handled and number of
land-based employees in 2017. Analysts cite the two mergers for the drop in
efficiency. While Hapag Lloyd is expecting a gain of USD 800 million as a result of the two mergers, according to the
article in Shippingwatch it will come
at a cost of cutting down manpower in the acquired companies. Similarly, CSAV, Hapag Lloyds' major
shareholder has also reported
a loss of USD 201.4 million after the holding company’s acquisition of UASC. Results such as these raise doubt on the utility of mergers and acquisitions.&nbsp;






While this is just one example, soon results of other companies who have taken the M&amp;A route to increase profitability and improve service offering will be available.&nbsp;Till then, the trade will have to wait and watch to see if the consolidation will have the desired impact on container shipping industry and help it weather the low and high tides of international trade

Merger & Acquisition: Cure for Container Shipping

Mergers & Acquisitions in Container Shipping: Industry Consolidation & Impact

Technology has revolutionized the way business is performed all around the world. With the introduction of better and more advanced technology, operating business has become much easier and efficient. Technology has affected not only one, but all types of business dealing in different products and services.The Freight industry is one which has seen a significant change in their business operations due to the integration of advance technologies in their systems. Supply chain productivity has risen notably due to these advances and has helped in minimizing cost and error in the industry.Technology has an impact on all operations of the logistics industry, from transportation either by air or ocean, to supply chain management and even shipment tracking.Let’s take a look at the 3 major technological advancements that are changing the freight industry for the better: <img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/1e26e62537de38f6a575358754382542/download%20%283%29.jpeg" alt="download%20%283%29.jpeg" style="width: 981px; height: 654px;"> 1) Internet of Things (IoT):In the freight industry, having access to real time data is very important. The IoT technology is an efficient way of managing supply chain and logistics and making them more organized and error free.&nbsp;Companies have started adopting this technology in order to increase their productivity and optimize their operations. From creating ‘smart warehouses’ which are operated by robots who store, arrange and retrieve inventory with efficient ease, to using IoT sensors for detecting goods, companies have transferred all their logistic operations to be handled by IoT. All IoT compatible devices can communicate, coordinate and connect with each other to perform supply chain management tasks in a synchronized manner. <img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/9ca57f3817a4c3e8ef5a68b0a9787a75/download%20%284%29.jpeg" alt="download%20%284%29.jpeg" style="width: 981px; height: 736px;"> 2) Artificial Intelligence (AI):AI/machine learning is a technology which is being widely adopted by supply chain companies to facilitate better management and growth. AI is the future of supply chain management market. Here’s how AI/machine learning helps the supply chain market:<ul><li>AI helps in better negotiations to get you the lowest price for hardware and software. It also helps you analyse the supply, quality and demands as well as the services, warranties and Mean Time Failure of a product.</li><li>With all the useful data at your disposal, AI helps you analyse it and provides real time advice on how the inventory management can be made more effective.</li><li>Order management can be done in a more accurate and efficient way with the help off AI tools.</li></ul> <img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/c6a229ba5e529e2774e97ac22dd89cda/download%20%282%29.png" alt="download%20%282%29.png"> 3) Cloud Computing:Cloud computing is another technology which has improved the operations in freight industry by providing exceptional data handling solutions. Data is readily available on the internet and can be accessed from anywhere around the world.These are the ways in which cloud computing helps the supply chain market:<ul><li>It allows real-time evaluation of prices associated with each logistics and supply chain element.</li><li>You have access to real-time inventory and thus inventory management becomes simple.</li><li>Your data gets stored in matrices and divisions which helps you find out similar shipping and procurement patterns.</li><li>It allows real-time monitoring and helps in creating accurate models of merge in transit.</li><li>Your entire team can access data regardless of the time and place they are stationed at. This gives way to faster and efficient operation.</li></ul> <h2>Conclusion</h2>Managing supply chain and logistics has become less challenging with the introduction of these technological advancements. There are limitless possibilities for the development of freight industry when it is integrated with technology.

Freight Industry Tech: IoT, AI, Cloud Computing

Technologies Changing the Freight Industry: Innovations in Shipping & Logistics

Dwell time
is an important metric for both the ports and the trade. For ports, it
helps measure operational efficiency. It aids exporters and importers to arrive
at the container dwell time charges levied by the port. In addition to this, it
also provides them with an estimated time lag for the next container movement –
loading on rail/road for import containers and loading on the vessel for export
containers. 



Given the
impact that dwell time charges have on the total logistics costs of a shipment
and the overall delivery timelines, how it is calculated is of importance to
exporters and importers. 



Hence, in
the last quarterly meeting of all the stakeholders of JNPT Port, CSLA and
MANSA presented this point for discussion. They put forth the suggestion to
take into consideration the actual time of loading/unloading of containers from the vessel and exact time of gate in and gate out respectively. 



Upon due
consideration, JNPT Port has announced revision in the computation method for dwell
time charges and reefer charges. Additionally, it has also decided to offer lashing
rebate to transshipment containers. This rebate was earlier only provided for
normal containers. The new computation method has been made applicable from 1st
April, 2018. 



The table
given below provides a comparison between the existing dwell time charges
computation method and the revised methodology.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/e66459dbc74d07720ca9831d91772541/Cogoport_Article_-30th-April%20%282%29.jpg" alt="JNPT Dwell Time Revised Computation" class="center" width=""> <pclass="msonormal" style="text-align:justify">&nbsp; &nbsp; &nbsp; &nbsp;Source: JNPT
Port </pclass="msonormal">According
to data shared in an <a href="https://www.joc.com/article/container-dwell-times-indian-major-ports-increase_20180115.html">article</a>
in JOC.com, dwell time at major Indian
ports is a matter of concern. A comparison of dwell time data of some of the
major ports for the April-November period in 2016 and 2017 shows an increasing
trend. During this period, the average container dwell time increased to 2.91
days from 2.57 days at JNPT. It went up to 2.79 days from 2.57 days at Chennai
port and Tuticorin recorded 2.01 days as against 1.96 days. Kolkata Port’s
dwell time went up to 5.6 days from 5.5 days. Taking
into consideration the dwell time trend of the previous year, this move by JNPT Port
should, to some extent, help provide relief to the exporters and importers in
terms of reducing logistics costs.&nbsp;

JNPT Revises Dwell Time and Reefer Charges

Revision in Dwell Time Charges at JNPT: What It Means for Shippers

Speculation over the Brexit effects grows as the saga is nowhere near finding a conclusion. People all across the globe anxiously wait for the terms of separation of the United Kingdom from the European Union to see how it affects their businesses.&nbsp;In 2016, the people of the UK voted to leave the EU in a move to set their own trading rules and control a range of issues such as the movement of labour, agricultural policy and tariffs. Three years on the terms of the divorce are still being debated and the implications for the shipping industry remain unclear.We’ll try to help by summarising a few possibilities - but don’t blame us if we get it wrong as things seem to change daily!Crucially the separation process was intended to have two parts. The initial exit - or Brexit - was the stage when formally the UK left the EU. Subsequently, the EU and the UK need to agree to the terms of their future relationship.However, agreeing terms of the exit still hasn't happened and it looks as if the UK is heading towards a ‘hard Brexit’ on 31 October with a mass of uncertainty and disruption.WTO tariff rules apply to trade between the UK and EU.Before the split, as part of the same customs union, no tariffs were applied to intra EU trade. However, the divorce can lead to both European Union countries and the UK trading under WTO rules which come with tariffs and regulations. If no alternative to applying WTO trade rules is found, businesses and consumers in the UK will likely face price increases and find exports to the rest of Europe become unattractive.New border, new rulesThe situation of the customs regulations after the split is still uncertain. Before, custom checks only applied on goods entering the EU; once inside, they crossed borders mostly without additional checks or paperwork. However, clarity has yet to be provided about the procedures for goods moving in and out of the UK.Doubts have also risen on whether trucks from the UK will continue to move freely in Europe or would they require fresh permits. More importantly, there is also no clarity as to whether the UK will still apply EU standards and regulations covering goods or would the newly separated country develop its own. The impact of UK-only rules would mean that goods produced for that market might be barred from sale in the EU.Another place where a problem of customs checks could be encountered is the border between Northern Ireland and the Republic of Ireland. Currently, goods move freely within the island of Ireland but Brexit could mean the return of a border with customs checks between the Republic and Northern Ireland which is part of Great Britain.&nbsp;There are significant political and historical implications to the reimposition of a hard land border and this has proved to be one of the biggest sticking points in the negotiations between the UK and the EU.&nbsp;Whatever the outcome in Ireland, border checks elsewhere between the UK and the rest of the EU may result in considerable delays. Presently, according to to the London School of Economics, it takes roughly two minutes for EU countries to clear their goods at the port of the UK. Fuller checks post-Brexit effects could take much longer and the main ports lack the infrastructure to cope with large backlogs of goods awaiting clearance. Significant delays are possible.Increased transportation and labour costsShipping charges from the UK and EU countries can increase. And so can the costs for the trucking services. Britain may face a shortage of drivers as 10% of their commercial drivers are migrants from the union countries. If a substantial proportion of the labour force is lost there will implications for the cost and availability of freight services. Additionally, UK companies had the luxury of EU maritime cabotage rights while they were a part of the union. This meant that they had the rights for water-based transportation within a territory. The separation can also see these rights been revoked.It is still uncertain whether the UK will separate from the European Union with a deal or without it. Hopes that the separation could be achieved with some agreement over the terms governing customs and regulations (the so-called ‘Soft Brexit)’ are fading fast. A no-deal Brexit where the UK overnight becomes a stand-alone country without an understanding about its relationship with the largest trading bloc on Earth is likely to be chaotic.Check out Cogoport’s <a href="https://www.cogoport.com/blogs" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">blog</a> to get more on the latest update of Brexit now!* The information contained in this article is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Unseen Effects of Brexit on the Shipping Industry

Brexit Effects on Shipping Industry: Challenges, Opportunities & Adaptation

Given the influence of Information Technology on businesses in the tech-savvy century that we live in today, it cannot be denied that the use of right system software can either make or break the company. If you want your company to not just survive the technology wave, but thrive and grow, it is time to pay a little more attention to the software that your business is using.&nbsp;<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px">The software that will profit your business the most and ensure smooth business operations depends on a number of factors like your business model, requirements, scale, budget, etc. Broadly speaking, there are two options available– Third Party Tools and In-Built Solutions. We, at&nbsp;Cogoport,provide the best ocean shipping solutions including Third party Tools and In-Built Solutions.&nbsp;Let’s understand briefly what each of these entail.&nbsp;What are Third Party Tools?Also known as Off-the-shelf solutions, these refer to the software that is created by a company to be used on an existing program on a particular system developed by another company.&nbsp;Let’s understand this with an example of a restaurant business- A regular restaurant would require a software that would allow it to keep track of its grocery purchases, orders received and served, etc. So, they can resort to purchasing a Third-party tool, from our company, which allows them to record all these comprehensively on their system.&nbsp;What are In-Built Solutions?An In-built solution is a software that a business gets developed through a software service provider or a software developer on their own terms, in accordance with the particular requirements of their business. Also known as Customized Software Application, it is a way for the business to ensure that they are using a software that has been specifically tailored for them. If you need efficient In-Built solutions at your disposal,&nbsp;Cogoportis the right digital shipping platform for you.In the previous example of the restaurant, if the restaurant also provides online order booking and delivery, then they will need a software system that allows them to record those in addition to other things. If they cannot find a third-party tool that provides this service, they can have their own software developed that allows them to do this.&nbsp;How to figure out which of these is the right solution for your business?The first step to making any decision is gathering as much information as possible. The same goes for choosing between Third-Party tools and In-Built solutions. You begin with figuring out what you need done with that software and then you move on to the next part where you find the software that gets it all done in a cost-effective manner. To make your job easier, we help you choose the right solution and make efficient business decisions.Here are some guidelines to we follow to decide which kind of software is more beneficial under which circumstances:&nbsp;Situations in which you should go for a Third-Party Tool –·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Budget Constraint– It is no surprise that getting an off-the-shelf software costs way less than developing your own software. So, if you are on a limited budget, a financially prudent choice would be to find an in-built software that solves most of your needs.&nbsp;·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Time– Even if you have the financial resources to build your own software, it will still take a considerable period of time, ranging from a couple of months to a couple of years. If you do not have that kind of time to invest, you can go for an In-built Software temporarily while you work on your customized software.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology does not translate to competitive advantage– The kind of software you require and how sophisticated it needs to be, depends on your business model. It makes no sense for a retail furniture store, for instance, to have state-of-the-art system software, as it won’t necessarily convert to more sales or reduced costs, or in any other way give you a competitive edge in the market. Also, customers couldn’t care less about the kind of software you use, unless it means better quality services for them. So, if you are not in the kind of business where advanced technology directly translates into revenue for the business, getting your own software built is an extravaganza you should steer clear of. Get an in-built software and invest the remaining resources (time and money) in something that profits you directly. Withus, you will never face the problem of misguided business decisions and always get the most profitable services.Situations in which you should go for an In-Built Software Solution –·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yours is a unique business model –If your business is modelled on an out-of-the-box idea, then it is unlikely that you will find any Third-party tool that meets a lot of your needs. This is because the third-party tools are made on a rather general note and they mostly only serve the very basic needs which are common to a majority of the businesses in the sector. And since, your business model is unique, it necessitates the use of an equally unique and customized in-built software.&nbsp;·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available third-party tools are not compatible with your other programs– Chances are you are using a number of programs to run your business. And therefore, for smooth functioning you need them all to be compatible with each other. But certain third-party tools are not compatible to external programs. So, instead of changing all other programs to suit your third-party tool, it makes more sense for you to get your own software customized that is perfectly in sync with your all other programs.&nbsp;·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Targeting specificities– With an in-built solution, you get absolute control over the software you are using. So, if you are willing to be pro-active about managing your business in, an in-built software would allow you to work on specific targets and request quick updates concerning the areas you would like to focus more on. This is something which is not an option with the Third-party tools.&nbsp;Here, at Cogoport, we incorporate ground breaking technology which helps us in being a leader in our industry.&nbsp;

Third Party Tools or In-Built Solutions

The Right Business Solution: Choosing the Best Logistics Platform

<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/9791a798065e333ef39f37e51597eaee/alex-knight-199368-unsplash.jpg" alt="alex-knight-199368-unsplash.jpg" class="left" width="100%"> It has been an eventful week. Hurricanes and trade wars impacting supply chains and logistics operations in various parts of the world, and the capacity crunch impacting shippers and shipping companies alike. For me personally, the week was literally eventful. I visited the Netherlands India Business Meet event near our European headquarters in Rotterdam and had interesting conversations on opportunitites and trade between India and the Netherlands. I accepted an invitation to speak on the Multimodal Europe event, which will be in Rotterdam November 6 and worked on the presentations I will be giving at the ICT &amp; Logistiek (ICT &amp; Logistics) event in Utrecht November 7 and 8. Speaking about events, here are the events that caught my eye this week in shipping and logistics: The Capacity Crunch The Loadstar has been writing a lot about the capacity crunch this week. Major shipping lines are canceling sailings from Asia to Europe. One of the reasons cited is the early October Chinese Golden Week holiday. Some interesting highlights: According to this week’s World Container Index (WCI) from Drewry, the Asia to North Europe spot rate component was $1,662 per feu, which is 3% down on the previous period.The aggressive rate stance taken by CMA CGM and Maersk on the route, as well as others less publicly, including MSC, is due to a particularly bearish sentiment on forward booking prospects.--&gt; Slack season pressure could spark new Asia-Europe capacity crunch North European exporters are becoming increasingly concerned at the knock-on impact of canceled backhaul voyages in November, and fear a return to the capacity crunch last experienced during the alliance restructuring in April last year.--&gt; Backhaul capacity crisis fears as more Asia-North Europe sailings are blanked Container throughput in the five largest [Chinese] ports was up 6.8% to 40.9 million twenty-foot equivalents (TEU) in the second quarter. However, trade tariffs imposed on China by the US is increasingly seen as a roadblock to further growth.--&gt; <a href="https://www.freightwaves.com/news/sisi-global-ports">Maritime trade continued to see strong growth, but tariffs remain a risk</a>&nbsp; Demolition of container vessels so far this year is at a record 10-year low, with just 24 ships for 47,500 TEU sold for scrap. This compares with 120 vessels equating to 355,000 TEU sent to the breakers by the same point in 2017.TEU--&gt; Gloomy outlook for container charter market as cautious carriers cut capacity&nbsp; The Trade War between the US and China Another thing impacting shipping in a negative way is the ongoing trade war between the US and China. The US is still increasing tariffs. And we haven't seen the end of it yet. So far the impact on shipping has not been big, but that will change. Some interesting snippets: Following the latest round of tariffs introduced by the US and China this week, Drewry has reduced its forecast for global container volume growth from 5.7% to 4.3%.--&gt; Fears over future container terminal capacity as investors get cold feet China and the United States plunged deeper into a trade war on Tuesday after Beijing added $60 billion of U.S. products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods.--&gt; <a href="https://www.reuters.com/article/us-usa-trade-china-response/china-hits-back-by-levying-tariffs-on-60-billion-of-u-s-goods-idUSKCN1LY22V">China to penalize $60 billion of U.S. imports in tit-for-tat move</a> and <a href="https://www.supplychaindive.com/news/tariffs-200-billion-imports-china-trade/532540/">Tariffs on $200B worth of imports from China start Sept. 24</a> Coming off of an all-time monthly high for United States-bound waterborne shipments in July, August levels, while still strong, were down slightly, according to data recently issued by global trade intelligent firm Panjiva. “The basic message is that Trump’s tariffs likely led to accelerated shipments in July instead of August and we may, therefore, have seen the peak of the year already,” said Chris Rogers, Panjiva research director.--&gt; <a href="https://www.supplychain247.com/article/u.s._bound_imports_are_down_sequentially_and_up_annually_in_august_reports">U.S.-bound imports are down sequentially and up annually in August, reports Panjiva</a> The Robots Are Coming And to end on a positive note: good news for us logistics professionals. We have nothing to fear from robots in the workplace. And the same goes for those not in logistics as well. Although some jobs will change and others will go away. According to the World Economic Forum (WEF), about 133m jobs globally could be created with the help of rapid technological advances in the workplace over the next decade, compared with 75m that could be displaced.--&gt; <a href="https://www.theguardian.com/business/2018/sep/17/robots-in-workplace-could-create-double-the-jobs-they-destroy">Robots in the workplace 'could create double the jobs they destroy'</a> Supply chain and logistics specialist positions are safe in the age of automation, according to WEF — in fact the report calls this field "emerging".--&gt; <a href="https://www.supplychaindive.com/news/WEF-report-supply-chain-safe-automation/532653/">Supply chain, logistics professionals are 'safe' from automation</a> Plans for an autonomous, purely electric container ship are making waves internationally as Norway positions itself as a global pioneer in alternative propulsion systems. The ‘Yara Birkeland’ will be the world’s first autonomous electric container ship, and will no doubt change freight transport at sea.--&gt; <a href="https://cleantechnica.com/2018/08/23/the-worlds-first-electric-autonomous-container-ship-to-set-sail-in-norway/">The World’s First Electric Autonomous Container Ship To Set Sail In Norway</a>

Capacity Crunches, Trade Wars, and Robots

Ocean Freight Roundup: Latest Trends, Rates & Market Insights

As one of the fastest growing startups in digital freight, we are always looking for bright people. One of our recent hires is Saurabh, who joined the Cogoport team to help out the business development team. He wrote a blog post about working at Cogoport.<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>And now over to Saurabh:Life at CogoportI have been a Cogoport intern for the past couple of weeks now, and so far, it is unlike any of my other internships or professional experiences. The learning curve is huge, but the opportunities for learning and growth are endless. I remember applying for internships and Cogoport stood out to me because it was a startup that had come up with its own unique idea and was trying to break the status quo in the enormous logistics industry. Also, I have always dreamed of having my own business and could not think of a better place to learn from. At Cogoport I am a business development intern and am tasked with bringing in new clients as my primary responsibility. My development and progress are overseen by Varun Mahendru, the Regional Business Head at Cogoport.All Together NowCogoport has a defined hierarchy, yet it does not show. The heads of various departments, employees, and interns all sit together in the office. If a stranger was to walk in then they may not be able to tell us apart. It helps promote the culture of learning and taking on responsibility. The heads lead by example, and everyone in the office has always taken initiative and followed suit.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" alt="" width="300px">New Skills for New BusinessI had always heard that start-ups are a lot more hands-on, and I’m excited to be able to experience it first-hand now. This really came to light when in my second week as an intern Drupad Goswami, who is Head of Sales at Cogoport, called in the evening informing me that we would be going to Morbi (an industrial town) to conduct a drive that would get more clients on board.Diving in at the Deep EndSo far, I had spent one day calling clients, and one day meeting them. Now, I was being thrown into the deep end and had to attract clients who could bring a lot of business to Cogoport. As I said, the opportunities to learn and grow were immense.With coaching from Drupad and Varun I had my pitch locked down after the first couple of meetings in Morbi. After conducting over 40 meetings over the course of two days, I’d managed to get 12 new clients on board. My numbers were pale in comparison to the more experienced members of the Cogoport team in Morbi, but for someone who had been a part of the company AND industry for slightly more than a week… I was proud of the result.We Have Lift-off!After returning to Ahmedabad I was feeling much more confident when reaching out to potential new clients. There was no more nervousness. I was sure in my knowledge of the platform and industry.Cogoport was able to help me in accomplishing all this in a matter of two weeks. I’m eagerly waiting to see what I can learn and (hopefully) accomplish over the next two and a half months!

Cogoport Intern: Day in the Life!

A Day in the Life of a Cogoport Intern: Experience & Learning

Online market has made our lives easier than ever before. Online platforms offer everything from electronics, apparel, food to services such as healthcare, beauty, domestic needs etc., at the ease of your doorstep. It has become common for people of all age groups and backgrounds to use mobile applications and websites to satisfy their daily needs and cravings.
<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" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="blogs_whatsapp_banner" width="auto"></a>
However, there is a sector which still remains unorganized and to a great extent, offline. The freight industry is huge and in most of the countries, the potential of this industry is still untapped. Making it an online marketplace could make the lives of vehicle owners and transporters easier by providing them a platform to connect with their potential customers and businesses directly to avail their services.
A slower rate of digital adoption by the Logistics industry brings in enormous risk even for the bigger players in the business. Over the next few years, the essential concern will be the race to build a dominant global platform that would determine the winners and losers in the truly digital freight industry.&nbsp;It would also mean letting smaller companies to have a global reach and to compete with the industry&rsquo;s established giants.
The following are the benefits that digital transformation of Logistics industry would bring about to the business as well as social and environmental aspects.
<ul>
<li>Digitally enabled information services puts data at the heart of the Logistics business with the help of initiatives like analytics and logistics control towers that helps in reducing the operating costs and in improving the efficiency of operations.</li>
<li>Digital adoption of freight industry will help in trade growth by creating digitally enhanced cross-border platforms. As a result, logistics companies can satisfy the growing need of customers for same day deliveries, and promotes the concept of city logistics which will give them an entry to mega-cities.</li>
</ul>
<img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="blog_banner" width="auto">
<ul>
<li>Technologies such as 3D printing and Crowdsourcing offer ways to create and practice newer means to process logistics. By harnessing concepts like autonomous trucks and drones, the delivery capabilities will increase and shipments will be efficiently processed and delivered.&nbsp;&nbsp;</li>
<li>Regenerative systems will foster more sustainable product life cycle, whereby reducing the environmental footprint by this industry, as the carbon dioxide emissions and air pollution will be under control.</li>
<li>If the enterprises take the initiative to analyze big data streams, they can derive new insights that can improve the operational efficiency and enables the launch of services like &lsquo;last-mile delivery&rsquo;. This requires companies to collect data along their value chain.</li>
<li>Digital transformation brings about shared capabilities such as shared warehouses, shared transport capabilities that will increase the asset utilization and saves a lot of time and energy.&nbsp;</li>
<li>Retailers get better insights about their customers through digital touch points. It also enhances the visibility of shipments that are both internally and externally sourced.</li>
</ul>
Industry stakeholders should take notice of the benefits and come together to prioritize digital transformation initiatives, given the potential for significantly higher value to be created for society and for the freight industry.

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