ROTTERDAM: July 12, 2019. A food and logistics platform to improve the speed, efficiency and cost of shipping food ingredients for the restaurant industry is to be launched by Cogoport Europe, Milvum and Royal Blue & Orange International Trading (RBO).
Milvum is currently developing a blockchain and AI-based solution linked to Cogoport’s global shipping portal for RBO Trading’s B2B “conscious and ethical food” ingredient, equipment & logistics platform. The company is a supplier of food ingredients and equipment to the fast food Industry.
With a launch for all markets by mid-2020, the platform has been awarded a major subsidy from Innovation Stimulation (MIT) – a joint initiative from the Dutch Ministry of Economic Affairs and the Province of South-Holland.
The system is designed to help farmers, producers of food, logistics providers and ultimately consumers across Europe, the Middle East and Africa who otherwise don’t benefit from volume-driven sourcing or purchasing of goods.
“SME restaurants and food suppliers struggle to get real value when shipping/importing their products – and that impacts their ability to compete in the food industry where larger enterprises have huge purchasing and negotiation power,” explained RBO Trading CEO & founder Sukai Ceesay. “I firmly believe that when you support small and medium size businesses to thrive and prosper, you indirectly help big companies as well,” she added.
“Our SME customers in the Netherlands and across the wider BENELUX region say Cogoport is already saving them between 10-15 percent on every container shipment. As we remove archaic and time-intensive processes we’ll be able to deliver similar digital efficiencies to farmers in the food supply chain,” said Europe CEO Carmit Glik.
Headquartered in Mumbai and now with 12 offices across India and the Netherlands, the company claims 27,000 registered users who use its platform to select their best shipping solution “in minutes”.
Pictured: RBO Trading CEO & founder Sukai Ceesay (centre) talking to Cogoport.
BONN: June 27, 2019. As the G20 leaders meet in Osaka this week, DHL’s latest Global Trade Barometer (GTB) is indicating “a slight contraction” of worldwide trade in the next three months for the first time since its launch in 2018.
The overall decline in the Index to 48 was driven by significant losses for both air and containerized ocean trade, which are the GTB’s two fundamental constituents. Airtrade fell by -6 to 49 points, and containerized ocean trade by -8 points to 48.
The latest developments continue a downward trend the GTB has recorded for several quarters since mid-2018. The current contraction is also the first one since 2015 when the GTB – which takes into account historical data from 2013 onwards – measured more than a month-long decline of global trade volumes in the middle of the year.
“Amidst rising US-Chinese tensions, the slightly negative outlook for global trade for the third quarter of 2019 does not come as a complete surprise,” commented Tim Scharwath, CEO of DHL Global Forwarding, Freight. “The latest GTB clearly illustrates why trade disputes create no winners. Nevertheless, some major economies such as Germany continue to record positive trade growth. And from a year-to-date perspective, world trade growth has still been positive.
“Hence, we remain confident in our initial prognosis that 2019 will be a year with overall positive, but slower trade growth,” he added.
Following Trump’s continuing trade threats with China, the US saw by far the heaviest losses amongst all GTB index countries, with its outlook declining by -11 points to 44 following a negative outlook for major export categories. China scored second in terms of losses, with a decline of -7 points to 49 – an index value one point below stagnation - primarily driven by declining imports in several categories and just minor overall export growth.
Eswar S. Prasad, Professor of Trade Policy and Economics at Cornell University in Ithaca, NY observed: “Growth is weakening in the key drivers of the world economy. Most macroeconomic and labor market indicators point to a cooling of US growth and financial market sentiment has been hurt by trade tensions.”
Prasad said despite Chinese government stimulus, persistent trade tensions are acting as a drag on growth as the “German growth revival looks fragile while India’s growth has hit the skids, with rising doubts about the prospects of major economic reforms”.
DHL said the “still mild” global trade contraction can be explained by the fact that during trade conflicts, trade routes and supply chains shift into other countries to offset the negative effects of trade tensions.
LONDON: June 17, 2019. Logistics insurer TT Club and risk management auditor BSI have published their first 12-month review of global cargo theft, noting South America has the highest median theft value of US$77,000 per event followed by Europe with just under US$60,000.
The report says theft from road vehicles accounted for the highest proportion at 84 percent globally last year, followed by 'Slash and Grab’ as the largest type of theft at 26 percent. The combination of food, beverage, alcohol and tobacco was the most common commodity group stolen worldwide at 34 percent.
TT Club and BSI analysed cargo theft by transport mode, the type of robbery, what was stolen last year and the loss value. Asia produced the lowest median at US$19,000 per event, while in North and South America hijacking was the most common method at 37 percent and 52 percent respectively. In Asia theft from a buiulding was the most common at 43 percent compared to 19 percent from hijacking.
According to TT Club’s Claims executive Mike Yarwood, the object of the report is to educate supply chain professionals in the threat of cargo robbery across the globe. “We aim to engage in a proactive approach in preventing cargo crime and also minimising the financial loss resulting from cargo crime.”
Yarwood noted that as security measures become more sophisticated and widespread, criminals are recruiting employees of targeted companies to gain data, cargo information, delivery routes and destinations and access to IT systems. “Due diligence in recruiting and managing staff is paramount. In general full or part-time salaried staff are less of a security risk than sub-contractors,” he added.
WASHINGTON D.C.: June 13, 2019. Tariffs Hurt the Heartland, a US campaign against Donald Trump’s tariffs, has sent him a letter signed by 141 trade associations and 520 American companies, including Walmart, saying his war on tariffs with China will cost two million American jobs.
Earlier this year the organisation released estimates prepared by Trade Partnership Worldwide that showed imposing new tariffs on an additional US$300 billion in goods (combined with the impacted of previously implemented tariffs and retaliation) would result in the loss of more than two million US jobs, add more than US$2,000 in costs for the average American family of four and reduce the value of US GDP by 1.0 percent.
The letter is published as the Office of the U.S. Trade Representative is set to begin hearings considering 25 percent tariffs on US$300 billion in goods, 60 percent of which are consumer products.
“We remain concerned about the escalation of tit-for-tat tariffs,” said the letter. “We know firsthand that the additional tariffs will have a significant, negative and long-term impact on American businesses, farmers, families and the U.S. economy. Broadly applied tariffs are not an effective tool to change China’s unfair trade practices. Tariffs are taxes paid directly by US companies, not China.
“We urge your administration to get back to the negotiating table while working with our allies to develop global, enforceable solutions. An escalated trade war is not in the country’s best interest, and both sides will lose,” the companies and associations added.
Pictured: CNBC on Tariff Tracker Data for September 2018: Tariffs are Taxes
MEERBUSCH, Germany/ATLANTA, US: April 05, 2019. Riege Software has partnered with the Chain.io supply chain integration platform to enable stakeholders exchange data between multiple internal and external systems via its Scope logistics management product.
Reige says integration with Chain.io, means any API or file format such as EDI, XML or CSV can be handled quickly and consistently to exchange data between different systems that do not share a common language.
The result means accelerated Advanced Shipping Notices, Inventory updates, IOT data streams, Shipment status updates, and e-commerce orders and deliveries, the company claims.
Green Worldwide Shipping (GWS), a Riege customer based in Atlanta, implemented the Scope integration with Chain.io to enhance cross-platform collaboration: “It is no question that continuous improvement to the technologies we use is an essential component in the future of international freight management,” commented president and CEO Thomas Jorgensen. “By increasing the operational efficiency of our technologies, we are able to free more time for our freight experts to do what they do best – service the client.”
Chain.io CEO Brian Glick added: "As logistics providers move towards digitization, they're being asked to connect to more and more systems across many technology stacks." His company’s cloud-based platform uses an open API, developer-friendly tools and AI to make connecting and coordinating systems and people easier.
In an effort to offset supply chain environmental impact for its customers and employees, GWS is partnering with Trees for the Future to plant one tree for every shipment and employee in 2019 (pictured).
“We are very excited to be able to bring this programme to our customers and international partners,” declared Jorgensen. “As contributors to the global environment, it is our responsibility to incorporate sustainability into our operational practice. It is only through relentless and ongoing effort can we begin to make a difference.”
Trees for the Future is an international development non-profit organization that plants trees for poverty alleviation, hunger eradication, and healing the environment. Through its ‘Forest Garden Approach’ it trains farmers to plant and manage Forest Gardens that sustainably feed families, raise incomes by 400 percent and end deforestation. Since 1989, it has planted over 150 million trees.
LONDON: June 06, 2019. As Britain’s outgoing prime minister Theresa May argues with Cabinet colleague Chancellor of the Exchequer Philip Hammond whether the cost of making the country carbon neutral by 2050 is, or is not, £1 trillion, a new report from the Carbon Disclosure Project (CDP) says the world’s biggest companies, with a market capitalisation of US$17 trillion, face US$1 trillion in climate crisis risk.
And as Brexit has reduced the value of Sterling against the US Dollar by over 20 percent since 2016, those two trillions are now not far apart.
CDP is an international non-profit that leverages investors’ assets of US$96 trillion to motivate corporations to disclose and manage their environmental impact. The organisation’s new report covers nearly 7,000 who reported data to CDP in 2018, including a sample based on the 500 biggest global companies by market cap, 366 of which reported to CDP. However only half of the fossil fuel corporations in the Global 500 provided any financial figures for the substantive risks and opportunities identified.
For a quick overview, here are the highlights:
• 215 biggest global companies report almost US$1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
• Companies report potential US$250 billion in losses due to the write-offs of assets
• Climate business opportunities calculated at US$2.1 trillion, nearly all of which are highly likely or virtually certain
• Potential value of sustainable business opportunities almost seven times the cost of realizing them (US$311 billion in costs, US$2.1 trillion in opportunities)
• Financial companies forecast US$1.2 trillion in potential revenue from low emission products & services
• Financial services industry represents almost 80 percent of the total potential financial impacts in the sample set
• Fossil fuel companies report more opportunities than risks from the low-carbon transition, raising questions about what they are reporting.
Over 80 percent of the reporting companies see major climate impacts, including extreme weather patterns, rising global temperatures and increased pricing of greenhouse gas emissions. Around US$500 billion of costs are rated as “likely to virtually” certain, with higher operating costs linked to legal and policy changes making up a significant risk.
Companies expect a potential US$250 billion in losses due to stranded assets – these include fossil fuel assets that may no longer offer economic returns as a result of market shifts associated with the transition to a low-carbon economy, or companies that are significantly exposed to the physical impacts of the growing climate crisis.
But the group also reported cumulative gains from realising business opportunities from the crisis at US$2.1 trillion, with the majority “as almost certain”. These opportunities include increased revenue through demand for low emissions products and services, such as electric vehicles, shifting consumer preferences and increased capital availability as financial institutions favour low-emissions producers.
On average, the potential value of climate-related opportunities is almost seven times the cost of achieving them (US$311 billion in costs, US$2.1 trillion in opportunities) says the CDP report. Given this, it adds, investors and stakeholders could expect to see a significant shift in climate-friendly products and services from the world’s largest corporations.
The financial sector see the most potential revenue (USD$1.2 trillion) from new sustainable products & services, followed by manufacturing (US$338 billion), services (US$149 billion), fossil fuels (US$141 billion) and the food, beverage & agriculture industries (US$106 billion).The vast majority of risks are also concentrated in the financial services industry, notes the study.
Nicolette Bartlett, director of Climate Change, CDP commented: “The goalposts for climate action have never been clearer for companies. Our analysis shows that there are a multitude of risks posed by climate change, including impaired assets, market changes and physical damages from climate impact, as well as tangible impacts to business bottom lines.”
BONN: March 25, 2019. DHL has published its first annual Risk Report based on data collected by its cloud-based risk management provider Resilience360.
The report is based on the experience and insights of in-house analysts who monitor hundreds of risk events each day to help companies proactively manage disruptive events, from political violence to cargo theft, and minimize business interruption.
“The Resilience360 Annual Risk Report sums up our expertise to our customer’s benefit in a very comprehensive way. Risk assessment and building up supply chain resilience is a crucial part of our customers’ business. Wherever they operate, the report’s insights will make the re- evaluation of the respective risk environment easier and thus complement the existing Resilience360 offer,” said Tobias Larsson, CEO Resilience360.
The report highlights an array of threats that may become particularly relevant to businesses in 2019 and beyond. In addition to ongoing global risks like the international tensions that characterized trade in 2018, companies may also face additional costs and uncertainty due to raw material shortages, recalls and safety scares or tougher environmental regulations.
Rising demand for raw materials, coupled with a fragile supply caused by political instability and supplier shutdowns, may result in raw material shortages for crucial materials such as lithium, cobalt, and adiponitrile.
Recalls and safety scares may increase, as wider public awareness of quality issues and stricter enforcement by regulators in highly regulated sectors such as pharmaceuticals and medical devices subject products to higher scrutiny.
Anti-pollution measures may be expanded in 2019 to a broader range of industries across Asia. The US Environmental Protection Agency is also expected to announce new requirements. As a result, tougher environmental regulations will increase costs for businesses in a number of industries. All of these developments have the potential to put suppliers under threat and force significant changes throughout supply chains, says the company.
“Modern supply chains are vulnerable. Transportation delays, theft, natural disasters, inclement weather, cyber-attacks and unexpected quality issues can disrupt cargo flows, creating short term costs and delivery challenges,” added Shehrina Kamal, director Risk Intelligence, Resilience360. “Resilience360 strives to understand these risks and gain a common understanding of how they impact supply chains across countries, regions, industries and organizations in measurable ways.”
TRENTON, NJ: April 21, 2019. A coalition of the world’s largest consumer product companies, international recycle company TerraCycle and UPS will launch a waste-free consumer e-commerce service in the US and France next month.
Called Loop, the subscription-based circular economy business model enables consumers to use products in brand-specific packaging that is then collected, cleaned, refilled and reused. The content, if recoverable, is either recycled or reused.
In addition to TerraCycle and UPS, Loop founders include Procter & Gamble, Nestle, PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop, Coca-Cola European Partners and Danone.
French retail giant Carrefour is the founding retailer while major UK supermarket chain Tesco is expected to pilot the service in the UK later this year.
“As a response to the global challenge in managing waste and the opportunity to improve consumers’ experience, a group of committed global brands, retailers [and] infrastructure companies have come together to create a new way to more responsibly consume products,” explained TerraCycle CEO Tom Szaky.
“Through Loop, consumers can now responsibly consume products in specially- designed durable, reusable or fully recyclable packaging made from materials like alloys, glass and engineered plastics. When a consumer returns the packaging, it is refilled, or the content is reused or recycled,” he added.
WATERLOO, ON: March 20, 2019. Descartes Systems Group has integrated Kharon’s sanctions ownership data with its denied party screening solutions.
Kharon is a research and data analytics company, led by former senior officials of the US Department of the Treasury, which provides actionable sanctions-related risk intelligence to financial services firms and other multinational institutions.
The Descartes move is to help organizations ensure they are not conducting business with entities that are majority-owned by individuals or companies sanctioned by the Department of the Treasury’s Office of Foreign Assets Control (OFAC).
Descartes already provide companies with the ability to screen against a comprehensive database of people, organizations and countries on official lists maintained by government agencies and international organizations regulating global trade.
Now companies can enhance the screening of entities owned by individuals or companies whose property and interest in property are blocked by using the Kharon interface. Customers can tailor screening processes to fit their unique risk parameters, flag potential compliance issues for resolution, and integrate denied party screening with global trade and enterprise resource management systems.
“It is critical to know your customers and other commercial partners, and expanding Descartes’ capabilities with Kharon helps organizations ensure they are not transacting business with individuals or entities that need to be blocked or are subject to restrictions, but may not be listed on OFAC’s SDN List or SSI List,” said Ken Wood, Descartes EVP Product Management.
The U.S. Treasury Department said on March 19 it had imposed sanctions on the Venezuelan state-run ferrous metals mining company CVG Compania General de Mineria de Venezuela CA, or Minerven.
Minerven was sanctioned for what the Treasury called the company’s role in propping up the Venezuelan government of Nicolas Maduro (pictured with gold bar). The US has also sanctioned Minerven’s president, Adrian Antonio Perdomo Mata.
In January the Trump administration announced the Maduro government was no longer legitimate, saying it recognized opposition leader Juan Guaido as interim president.
MEXICO CITY: April 15, 2019. Panalpina has expanded its pioneering Logistics Manufacturing Services (LMS) offering to include the installation of hardware and software for mobile network antennas.
The company says the move is prompted by the exponential growth of the telecoms infrastructure market with the advent of 5G technology and the subsequent need to upgrade network components.
“Conversations with a number of customers showed us that they had to deal with multiple suppliers and multiple installers for mobile network antennas,” said Mike Wilson, Panalpina global head of Logistics and Manufacturing.
“It was a real headache for them and virtually every time they wanted to replace or upgrade a site, the installation had to be postponed because of missing parts, equipment, team members or even due to the site not being prepared. Our research showed that on average 2.8 visits had to be made to a site before the installation could be successfully completed.”
As Panalpina was already delivering most of the components to the sites, it worked out how to consolidate and deliver them all together. The next step was to overcome the lack of installation coordination by creating a team of fully qualified telecoms personnel in Mexico.
Krasimir Banchev, global head of Installations Services Management at Panalpina added: “It was an intense few months. Our team had to go through various trainings, pass exams and get the right certification. We also had to develop the right commercial and legal frameworks that are very different to traditional 3PL arrangements.”
According to Wilson the move is a natural addition to its LMS offering where it manufactures and configures network equipment. “We started this in Mexico for two core reasons,” he explained. “Firstly, because we have such good customer relationships there. Secondly, because we have an amazing talent pool in Mexico.”
Panalpina has reported a 3.0 percent drop in 2019 Q1 gross profit to CHF358.1 million, while total operating expenses declined to CHF290.0 million. EBIT and consolidated profit increased year-on-year by 15 percent and 16 percent respectively. EBIT reached CHF28.1 million compared to CHF24.4 million a year before and the EBIT-to-gross-profit margin stood at 7.9 percent, up from 6.6 percent in 2018.
The Q1 consolidated profit increased from CHF16.6 million to CHF19.2 million. Good news for the proposed DSV/Panalpina share swap.
BRUSSELS: March 08, 2019. Belgian data sharing specialist Nallian is launching its Global Pharma Tracker (GPT) for temperature-controlled pharmaceutical shipments at the IATA World Cargo Symposium in Singapore next week.
According to the company, its GPT is the world's first data sharing platform for end-to-end tracking and monitoring to enable pharma shippers to efficiently detect, act upon and ultimately prevent costly temperature excursions - currently causing billions worth of product loss every year.
The GPT integrates logistics, temperature and quality data from a multi-sector supply chain into a single, real-time view.
Following a successful proof of concept and pilot with the Pharma.Aero user group, including Pfizer, Johnson & Johnson, MSD, Brussels Airlines, Singapore Airlines, Mumbai Airport, Brussels Airport, Changi Airport and DHL Global Forwarding, Nallian has launched an “early adopter” programme for the sector.
Company CEO Jean Verheyen said it was the logical next step for the pharma industry: “Users of the [GPT] will leverage the benefits manifold: internally, within their local community, across validated pharma corridors and ultimately across the global network. With a cost of US$35 billion caused by temperature excursions, we trust the Global Pharma Tracker represents a major opportunity for the industry.”
In a related announcement, Sichuan Airlines Cargo is to begin a three-times weekly A330 freighter service from Chengdu to Brussels by the end of April, and says it plans to increase the frequency to six by 2020.
