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

India-Pakistan Political Dispute: Affect on Trade

India-Pakistan Trade Dispute: Current Issues & Economic Impact

Watch Ido Rosenthal, CTO at Prodalim group, talk about the joys and challenges of running a successful international business.Prodalim Group provides optimised solutions to bottling companies across the globe.&nbsp;&nbsp;More simply put,&nbsp;&nbsp;they get top quality fruit juices into the hands of bottling companies, who then make sure that those same juices fill your glass.<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>1. What inspired the creation of Prodalim?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/vioblQV6OvY?showinfo=0" width="300px" height="150px"></iframe>2. What is your experience of being an entrepreneur?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/QYf6tfcjpW4?showinfo=0" width="300px" height="150px"></iframe>3. How do you feel about the industry growing in the era of digitisation?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/TAUjCVcSmKM?showinfo=0" width="300px" height="150px"></iframe>4. What are your thoughts on sustainable practices in the industry?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/DDWtX2JyYG8?showinfo=0"></iframe>5. Do you face any challenges with importing and exporting your product?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/btuxPWLCV-A?showinfo=0"></iframe>6.&nbsp;&nbsp;How do you utilize technology to make your business more efficient?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/-ZRpKXbri54?showinfo=0"></iframe>7. What 3 things do you wish you know when you started?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/_PvmdpB2QiI?showinfo=0"></iframe>

Cogoport X Prodalim Group Interview

There has been a disturbance that has happened globally due to the coronavirus outbreak in China. India has become a global centre for ceramics, lifestyle goods, engineering goods, furniture and textiles. In the past 15 days, Indian manufacturers have started receiving an increased number of orders for wares from the European Union and US. India has a chance to become a manufacturing superpower.

 

Director General of the Export Promotion Council for Handicrafts has told that over 50 new accounts are created within the past seven days. Manufacturers who took products from China have now come to India.

 

Cevisama 2020, Spain’s largest ceramics fair had 55 Indian companies as its part. <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>China did not attend the fair and hence India, which was its part has got various leads for the next year. India is the second-largest country in the world in population and it could become a major centre for labor-intensive products. Enquiries have come from the US and EU. Many companies are already receiving orders for major export deals. According to the Federation of Indian Export Organizations, industries from the chemical, marine products and engineering goods sectors will benefit the most.

Global Buyers Look Towards India After Covid-19

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

Disruption in B2B – Still a fait accompli?

<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/cbf421861ddbe56377f7cb18906b80e2/mauro-licul-388509-unsplash-turned.jpg" alt="mauro-licul-388509-unsplash-turned.jpg" class="center" width=""> Sometimes you can’t tell one week from the other. That can be because your calendar is filled to the brim, but it can also be that the news you read feels like more of the same. As I’m experiencing both, let’s go straight to this week’s news highlight’s: Portside EfficiencyAt Cogoport we make booking a container more efficient. Moving containers around the port and on and off ships needs to be more efficient as well. As the rise in competition between carriers is driving down the revenue per container, these carriers are pressuring ports to improve efficiency in terminal operations. Automation seems to be the key.“Some terminals are handling more volume, but in some markets the revenue per TEU is decreasing – or certainly not increasing the way it used to – so they’re having to manage their business in a different way. “That efficiency drive has two parts: one is to be the better service provider [than regional port competitors]; but also to reduce your costs, which therefore either gives you more flexibility on the commercial side, or it means you’re a more profitable business,”→Ports need to think outside the box to make their terminals more cost-effective Digitization and AutomationAn interesting study came out done by PwC: “The Era of Digitized Trucking: Charting Your Transformation to a New Business Model.” It made me think of digitizing shipping and how that changes business models as well. More on that in a future post.“A consistently digitized supply chain saves administrative overheads, replaces time-consuming inventory, and reduces insurance costs by cutting error rates. In total, savings of up to 41% are possible by 2030 compared to today's supply chains.”→<a href="https://www.supplychain247.com/article/digitization_and_autonomous_driving_to_halve_logistics_costs_by_2030">Digitization and Autonomous Driving to Halve Logistics Costs by 2030, finds PwC Study</a>Also in that category a study by Deloitte:“Continue to monitor advancements in autonomous robots for applicability to the supply chain. Autonomous robotics have the potential to improve operations, and they offer new opportunities to increase productivity, reduce risk, decrease cost, and improve data collection, particularly as customer expectations and volumes of packages, shipments, and orders reach unsustainable levels for traditional approaches.”→<a href="https://www.supplychain247.com/paper/using_autonomous_robots_to_drive_supply_chain_innovation">Using Autonomous Robots to Drive Supply Chain Innovation</a>And autonomous shipping news from the UK:“The U.K.'s Maritime &amp; Coastguard Agency (MCA) and Department for Transport will study new ways of regulating the autonomous and smart shipping industries to help them deliver new technologies to the traditional maritime sector.The £1 million (US $1.3 million) grant will underwrite a new Maritime Autonomy Regulation Lab, where regulators, academics and industry representatives will investigate the best methods for regulating vessels operated remotely and autonomously.The global autonomous shipping industry is predicted to grow into a $136 billion behemoth by 2030, according to U.K. maritime regulators."→<a href="https://www.supplychaindive.com/news/uk-grant-autonomous-shipping-regulations/539180/">UK grant will study autonomous shipping regulations</a> More Surcharges and Carrier RatesMore on surcharges and carrier rates in addition to the items mentioned&nbsp;<a href="https://www.cogoport.com/en-IN/blogs/this-week-in-ocean-freight-181005">last week</a>.“Anecdotal reports from The Loadstar’s sources refer to a “sharp dip” in load factors on the route in the two weeks leading up the national factory shutdown, from a peak season high of over 95% to below 90%. The demand slowdown reinforces the strategy of carriers to axe more than 200,000 teu of headhaul capacity this month, including the 2M’s AE2/Swan loop.”“Meanwhile, on the transpacific tradelane, the jury is still out on the impact on forward bookings of US retailers stocking up in advance of Trump trade tariff hikes on a vast range of consumer imports.”→Box carriers sail towards a tipping point of ocean freight rates and fuel“The IMO’s 0.5% sulphur fuel cap will cause an “existential crisis” for container carriers, unless they can pass on the added bunker costs to shippers.”“However, speculation is mounting as to whether carriers will be able to successfully pass on all the extra cost, having failed to do this during the first half of 2018 when their earnings were hit by a steady rise in bunker prices.”→2020 sulphur fuel cap may spark a crisis for carriers that can't recover the cost More on the US-China Trade War“Despite tariffs on billions of dollars worth of imports coming in from China, imports at U.S. container ports are expected to stay at "near record levels," the National Retail Federation (NRF) and Hackett Associates said.Retailers "are not able to quickly or easily change their sourcing," Jonathan Gold, NRF vice president for supply chain and customs policy, said in a statement. As a result, many businesses will continue to import products from production facilities in China.”→<a href="https://www.supplychaindive.com/news/tariffs-retail-imports-record-levels-NRF-hackett/539339/">Tariffs are not slowing down retail imports</a>“The US-China trade war has seemed “positive” for transpacific shipping lines, so far, with importers rushing to beat tariff deadlines. But there is growing concern that a prolonged dispute would leave shippers with question marks on whether to reorganise their supply chains.”→China-US trade war brings box carriers a bonus – but 2019 looks less promising SustainabilityAnd there was the climate change report that the IPCC published. You can read a nice recap in the last article of this week:“It’s clear that the benefits to the world of mitigating climate change are greater than the costs of mitigating climate change”→<a href="https://qz.com/1416250/everything-you-need-to-know-about-the-new-1-5c-climate-change-report">Everything you need to know about the new 1.5°C climate-change report</a>Photo by&nbsp;Mauro Licul on&nbsp;Unsplash

Ports: Digitization and Sustainability

The Indian government has approved the construction of a new major port at Vadhavan. The project will set back the government back by approximately Rs. 65,544.54 crore. The decision to build the port was approved by Indian Prime Minister Narendra Modi.

 

The Union Cabinet approved the project which may put India on the list of the top 10 container ports globally. The new port will reduce the operational burden on the Nehru Port in Mumbai, which is currently the 28th busiest port globally. <img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px">Despite the introduction of the new port, Nehru Port’s traffic is expected to grow by over 100% by 2023.

 

The new port will be built on the landlord model by SPV. Reclamation and construction activities will begin this year, along with the construction of a breakwater to establish connectivity. All business activities surrounding the port will be undertaken by private developers and public, private partnerships.

 

The move by the government comes in the wake of an increasing level of containerization of cargo globally. Container shipping benefits manufacturers. The new port will ease the operational pressure on other ports and accommodate the expected increase in container traffic at the Nehru Port in Mumbai. The new port will also prepare for increased manufacturing activity in the Maharashtra region.

Sea Port in Vadhavan Gets Approval From Cabinet

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

CMA CGM Peak Season Surcharge: India to Nigeria

&nbsp;OOCL has announced a change in its Middle East Service 4 with effect from August 6, 1st sailing from Shanghai with the new route for the service.&nbsp;The press release is appended below for your reference and use.&nbsp;<pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">Dear Valued Customer:</pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">OOCL is pleased to introduce a direct call to the port of Umm Qasr in our Middle East Service 4 (ME4) product, effective from August 6 with the fist sailing in Shanghai.</pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"=""><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px"></pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">With the market reach and connections that the Umm Qasr port can provide, the ME4 service will improve our overall suite of Asia-Middle East products with competitive connections and a more comprehensive service network to the Middle East for customers.&nbsp;</pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">The new ME4 port rotation will be as follows:</pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">Shanghai – Ningbo – Taipei – Shekou – Tanjung Pelepas – Port Kelang – Jebel Ali – Umm Qasr – Jebel Ali – Port Kelang – Hong Kong – Shanghai.</pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"=""><img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/e2871be04626e73daa987bfa351127d0/IAT-ME4-S.jpg" alt="OOCL Service Route Change" class="center" width=""> </pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"=""> </pstyle="font-size:><pstyle="font-size: 16px;="" letter-spacing:="" normal;="" margin-bottom:="" 11px;="" caret-color:="" rgb(34,="" 34,="" 34);="" color:="" font-family:="" roboto,="" &quot;helvetica="" neue&quot;,="" helvetica,="" &quot;pingfang="" sc&quot;,="" &quot;hiragino="" sans="" gb&quot;,="" &quot;microsoft="" yahei&quot;,="" &quot;noto="" cjk="" &quot;wenquanyi="" micro="" hei&quot;,="" arial,="" sans-serif;"="">Source: OOCL.com Image source: Wikipedia Commons</pstyle="font-size:>

OOCL: Improvements to the Middle East Service

According to a press release dated July
5, 2018, French container shipping giant, CMA CGM is set to overhaul
its Asia-Middle East Services from the end of July 2018. Network optimization and improved service offering have been cited as the reasons for this change.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="website Book now " width="302px" style="width: 302px; height: 44px;">

The press release from CMA CGM is appended below
for your reference and use:

CMA CGM is pleased to announce the reshuffling of its Middle East
services from the end of July 2018.



The Ocean Alliance Day Two
Product will offer in total 4 loops between Far East and Middle East ports with
competitive transit time. CIMEX 1 and CIMEX 3 will be merged into one loop
covering most of ports previously offered. 



The coverage includes the ports in China Mainland/Hong
Kong/Taiwan/Pusan/Southeast Asia and the major callings in Middle East region
such as Jebel Ali, Abu Dhabi, Dammam, Sohar, Hamad, Bahrain, Jubail, etc. 



The New CIMEX 1 rotation
becomes: 

Tianjin - Busan - Qingdao - Shanghai - Shekou - Singapore - Sohar -
Jebel Ali – Hamad – Dammam - Jubail - Singapore - Tianjin &nbsp;<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/09887e45a0720e9d89dc713600effb0d/CIMEX%20LOOP%201%20WEB.gif" alt="New CIMEX 1 Service Loop" class="center" width=""> 

 With this reshuffle, CMA CGM will be able to optimize the network and
enhance the reliability of products to our customers. 

Source:&nbsp;CMA CGM

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