In order to expand business presence across the world, a company needs to have a global product reach. It is desirable for companies to have a streamlined delivery mechanism in place, to bridge the gap between the consumers and them. <h3>Going Global</h3>Before planning the entire course of the shipment, you need to make sure that the goods you want to ship are not prohibited or restricted items in the destination country. You can do that by visiting official customs websites of the countries. <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>Some countries are easier to ship to than others. For example, India requires more personal documentation than most countries. It is important to be aware of the current geopolitical issues, this allows building trust with overseas partners. <h3>Do I Need Shipping Insurance? </h3>If a person wishes to ship a high-value item, they’re bound to assess the likelihood that the item may get lost, damaged or stolen. Therefore, it is important to get shipping insurance to have peace of mind when shipping goods internationally. There are numerous websites where one can generate shipping insurance. <h3>Start Shipping</h3>For a streamlined shipping experience, it is recommended if the entire process is automated. This will help in avoiding all intricacies involved in doing the work manually. Automation is taking over every industry, including shipping and logistics. Innovative companies like Cogoport have offered the consumers a platform to search for freight rates instantly and get transparency in tracking. Business owners should have a shipping tool which allows them to import all the individual’s orders from different sales channel onto one platform, automatically send tracking numbers, generate Bill of Lading, make sure the process is smooth, and schedule the pickups online.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" alt="" width="300px"><h3>Duties and Taxes</h3>A shipper is bound to pay various duties and taxes when shipping internationally. Following are the two ways to pay for duties-<ul><li>Delivery Duty Unpaid (DDU) - Duty is not included in the shipment cost and must be paid when the consignment arrives at the destination port.</li><li>Delivery Duty Paid (DDP) - Duty is included in the shipping cost and has already been paid before the consignment arrives at the destination port. </li></ul>Shipping cargo internationally demands a high level of documentation and declaration. However, there are numerous websites which make the task of documentation easier by doing 95% of the work.

Planning Your Next International Shipment

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

Developing a great website is the first step of creating an amazing online presence. Once the website is up and running it needs traffic, and the only way to achieve it is to have a top-notch Search Engine Optimization (SEO) in place. SEO is a perfect blend of art and technology to boost the organic traffic of the website so that it is visible on the Search Engine Result Page (SERP). A company’s website is the only visual representation of the company, which helps in gaining traction from consumers who are in need of its services- the only way to achieve this is to increase traffic by deploying various methods to make sure that the website is user-friendly while maintaining good response time.<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>We, at Cogoport, know the importance of having a good SEO score, and use a plethora of methods to make sure, a user who searches for certain keywords, lands on our website. How are we able to achieve the perfect blend of website traffic and user-experience? We have incorporated industry-leading strategies to make www.cogoport.com a best-in-class marketplace for freight.<h3>Proper HTML Structure</h3>Every web developer dreads a website which lacks basic HTML structure and has innumerable errors. An improper structure opens countless pathways for page load errors and broken links. Also, Google’s crawlers pay no heed to a website which lacks structure. Therefore, the entire Cogoport website is written using semantic markup, meaning all the pages have a proper ‘header’, ‘main’, ‘nav’, ‘article’, ‘section’, ‘aside’, ‘address’ and ‘footer’. This has enabled us to score a high page rank score.<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>Crisp Content</h3>Without a crisp and tailored content, any website is a mere template, and in no way serves the purpose of a platform that a user understands. Our team has created an ironclad SEO-friendly content guideline, which enables us to ease the process for our customers through our high-quality content. A user, who lands on our website easily finds the desired service- this improves our bounce rate and results in a 100% conversion. A high-quality SEO-friendly website contains quality keywords, optimized article length, and a good Page Load Speed.<h3>Meta Tags</h3>Meta Tags are snippets of the text available on the website, they don’t appear on the page itself, but are displayed when the webpage is shown on the search engine page. They provide information to the user about the website’s description. <h3>Canonical Tags</h3>A canonical tag specifies the source URL of a page to a search engine (such as Google). The idea is to declare a single page as its own source or for duplicate pages to reference their source or originating page in order to attain proper indexing. Suppose a single company owns multiple domains, all of them having the same content, Google’s crawlers may mark it as plagiarised- to avoid this we add a canonical tag in the code, letting Google’s crawlers know that all domains belong to a single website.<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><h3>Server-side Rendering</h3>Cogoport developers have successfully implemented Server-Side Rendering (SSR) on the website. SSR is a popular technique for rendering a client-side only Single Page App (SPA) on the server and sending a fully rendered page to the client. SSR helps in performing well on devices which have minimum processing power, as the server sends a fully loaded app to the device. SSR allows faster page load speed for our website, which is essential for improving user experience.

Cogoport and SEO - A Perfect Blend

*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

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?

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.

Ways Chinese New Year Will Impact Freight Rates

The consignee plays an important role in any shipping business or exporter. Here’s how you can build the trust of international consignees to ensure a continued and uninterrupted loyal service throughout the whole process of delivery of goods.<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>Delivery of any shipment includes several participants. When a shipping consignment order is placed, the delivery is undertaken between a consignor and consignee via a delivery service.&nbsp;Here, the consignee is the entity who is financially responsible for the shipment delivery. In certain cases, the receiver of the goods may or may not be the same person. The individual may or may not also be considered as the owner of the goods delivered. At times, the consignee may also function as an agent that received goods from the consignor.&nbsp;However, no matter the role, the ownership of the goods is transferred only when the consignee has paid for goods delivered. If the goods are not sold, he or she will be held responsible for the inventory holding costs. At the same time, the consignee may also have to face the challenges of managing inventory related to the consignment, especially if multiple goods are assigned.&nbsp;The consignee plays an important role within the shipment delivery process. A consignor, or any other participant interacting with the consignee, would want to ensure that the relationship between them and the consignee is built on complete trust.&nbsp;<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>Here are some of the key factors you need to communicate if you want to build a relationship of trust between your consignee:Settle on the responsibility of Incoterms: Incoterms are a set of terms and conditions, which define the responsibility of the delivery of goods. Shippers normally use Incoterms as a means to spell out who’s responsible for the shipping, insurance and tariffs and other charges on an item. As a consignor communicating with a consignee in terms of delivery of goods, incoterms greatly reduce misunderstandings and minimise trade disputes and litigations, and thus goes a&nbsp;long way to provide excellent customer service between the two parties.&nbsp;Protection of goods through insurance: As a consignor, you will want to protect your goods. You would also not want your consignee to be caught off guard, in the event they have to pay for damaged goods, especially not owned by them. The best solution, in this case, is to inform your consignee to maintain a certain insurance coverage when the imported goods are under their responsibility. In doing so, your consignee will be well protected financially in the event that the goods are damaged during shipment.Duty of storage: Until the goods are delivered and sold, the responsibility of the storage lays in the hands of the consignee. Any damage to the goods in this duration will result in loss of funds for the consignor and consignee. In this case, you can convince your consignee to agree to a certain duty of storage care, ensuring the goods are handled and stored properly, thus protecting both parties financial interests.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">Buy out and stock rotation: It is the responsibility of the consignee to sell off the goods. Any delay in goods sold would result in a financial loss for the consignor, and loss of commission or even profit for the consignee. To protect the interest of both parties, it is best to set a time limit on the amount of time the consignee needs to sell its goods. If the time limit is not met, the consignee can either return the goods or purchase the goods for themselves, thus minimising financial loss.In any business, both local or even international, building a steady relationship between a consignor and a consignee is crucial for the growth and development of a business. The above-mentioned factors will go a long way to ensure that your business not only grows but also builds a better future. Sign up with Cogoport today to get the best service now!

How to Build a Relationship with Your Consignee

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

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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