The B2B marketplace is perceived&nbsp;tech-&nbsp;phobic&nbsp;which means&nbsp;anything&nbsp;that&nbsp;smells&nbsp;automated to&nbsp;the user&nbsp;cannot be&nbsp;simple.&nbsp;The&nbsp;fight is on, to&nbsp;prove&nbsp;that it is&nbsp;but&nbsp;very&nbsp;simple. It&nbsp;just needs&nbsp;to be&nbsp;addressed, that’s&nbsp;all. Technology need&nbsp;not be feared, it does add only value.&nbsp;The buyer will save time and money and&nbsp;the seller will save on customer acquisition cost, where if a shipper wants rates and clearance, technology will give it all - value, in every service that is provided.&nbsp;How this new striker with a tech-enabled model can herald a movement is to make a statement and deliver a complete package in terms of the price discovery that can assure clarity, compliance to rules, speed, transparency, profitability and instantaneousness.&nbsp;A lot could be replaced by adding value through technology.Tech can be predictive, Tech can analyse.&nbsp;Said and done, pure tech play cannot change human nature. Herein lies the trick.&nbsp;Technology will need Humans.Solution: the tech driven model brings in the now-needed human touch.&nbsp;A hybrid platform which is not merely a portal, which can be an assisted process to transact the deal.&nbsp;Why hybrid?&nbsp;Because a full-fledged technologically sound platform may not quite be what the buyer may want to adopt immediately. Show the buyer a face, a voice that is capable of being the guide and give some comfort with the initial handholding- that is what technology will do...take it whole lot further.The idea is brilliant, so why wait till the concept gets tested?<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>Watch this space for more…. Next: “The Limit(lessness) of Technology”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Technology - The need for a human face to it

The success of your sales efforts, go-to-market strategies, and new product launches is, to a large extent, dependent on how well you&rsquo;ve linked the different touch points of your supply chain &ndash; starting from procuring raw material to delivering the finished product to the right market at the right time.
&nbsp;
Logistics is the backbone of business; local or global. No business can succeed without effective and efficient logistics partners. How you select and manage your logistics service providers will impact the outcome of your carefully crafted business strategies.
More often than not, most companies identify and select logistics partners based on the cost of service projected by the potential service providers. A select few give importance to efficiency and base their vendor selection on this parameter alone.
While both cost and efficiency are important attributes of a logistics partner, neither can be looked at in isolation nor is it enough to base your vendor selection on only these two attributes.
What should one look for in a logistics partner? 
An ideal logistics partner is one who is invested in your organization&rsquo;s success as much as you are. The right partner should, along with optimal pricing and efficient service, also possess the following attributes:
<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" width="auto"></a>
1. Technology:&nbsp;Supply chain is evolving. It is becoming digital, functionally inter-dependent, and highly complicated. One can no longer expect operational efficiencies by following age-old manual methods or by working in silos. Thus, when choosing a partner to lead your logistics function, it is imperative to bring on board a company that understands the importance of integrating different touch points in the supply chain and functions in a digital environment.
E.g. If you&rsquo;re looking for a transport provider, then check whether they offer multi-modal transport solutions? How do they take bookings? Do they offer a digital platform to book cargo loads? In case of road transport, ask if their carriers are equipped with GPS? For all modes of transport, find out if the company provides real-time cargo tracking?
Similarly, if you&rsquo;re looking for a warehouse partner, check if they have the latest equipment to handle inventory. Find out how they keep stock records. Ask if their system can be integrated with yours?
Another point that you must ascertain is the tech savviness of the team. Specially the team-on-the-ground. Is their team trained to work in a digital environment? Can they adapt to new systems and processes with ease?
If it is an end-to-end logistics management company that you want to partner with, then along with all the above aspects, you also need to understand how they integrate the various logistical functions within their organization and how their technology can be synchronised with your organization&rsquo;s processes and systems.
<a href="https://cogoport.com/signup/en-IN/?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-Portal-1.png" width="auto"></a>
2. Market Acumen:&nbsp;Right from the top management to the team that will handle the day-to-day activities for your organisation, should have an understanding of the industry and the market that you operate in. These insights will help them serve you better, which in turn will benefit your end customers.
3. Business Reach and Scale:&nbsp;Global is the new local. A logistics partner is a key contributor in ensuring that your products reach customers around the globe with minimum effort, on-time and in good (saleable) condition.
Scale of operations is another crucial aspect that you need to consider when partnering with a logistics service provider. Understand their business development plan. Will they be able to service your business growth? Can they manage sudden market-driven demand? If in the event they themselves do not possess the ability to cater to unplanned trade, do they have a network of trusted business partners who can provide the required support?
4. Business Ethics:&nbsp;Assume&nbsp;technology, systems, and processes are in place. The pricing is competitive and the team is stellar. Is this enough to appoint this organization as your business partner?
No. Given the important role that logistics plays in making your business successful, along with the operational efficiencies, you must also conduct due diligence on their work ethics and business practices. This goes beyond the regular credit and KYC checks.
Before signing on the dotted line, seek out the responses to the following questions - are their transactions and dealings transparent? Are they reliable? What is their reputation in the market? How do they treat their resources and manage their team? How do they manage their finances? Do they follow industry best practices? And, in case of transport providers &ndash; are they following the rules laid down for carriers and drivers?
It is necessary to carry out a hygiene check for business partners, because in the long run their reputation and standing in the market will affect yours too.
<a href="https://cogoport.com/signup/en-IN/?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-Portal-3.png" width="auto"></a>
5. Responsiveness to Business Needs:&nbsp;Customer service is another key factor that needs to be assessed before partnering with a logistics service provider.
Before you finalise on a vendor, find out if their customer service team is willing&nbsp;to go the extra mile to find the most optimum solutions for your business? Is the team proactive? Can they take ownership of the business process outsourced to them? Can they foresee problems and work on finding the most optimum solutions for your business?
A dedicated customer service team is necessary for ensuring successful management and execution of logistics plans.
Keep these key attributes in mind when you are looking to appoint a logistics partner. It will help you weed out partners that may not be in a position to offer you the logistical support you need to grow your business.
Reliability, transparency, and a dedicated customer success team is the hallmark of Cogoport!&nbsp;<a href="https://cogoport.com/signup">Register Now</a>&nbsp;to know more about how we can help you optimise your import and export logistics.

5 Key Factors for Choosing a Logistics Partner

Finagle’s Law,
a popular version of Murphy’s Law, which says that “Anything that can go
wrong, will”, is probably the best way to explain the importance and
necessity of freight and cargo insurance. A few recent examples
of accidents or incidents which resulted in huge cargo or marine claims are:<ul><li>The&nbsp;<a href="https://en.wikipedia.org/wiki/2015_Tianjin_explosions" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Tanjin Port explosion</a>&nbsp;(2015) caused due to hazardous cargo could result in a loss of USD 6
billion. </li><li><a href="https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-causes-turmoil-in-global-sea-freight" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Bankruptcy declaration of Hanjin Shipping</a> in September 2016 resulted in
huge cargo claims. </li></ul>Natural
calamities like earthquakes, floods, and hurricanes also form a major
part of marine claims.While all
transportation and allied service providers aim to provide safe transport of
goods from one place to another, the possibility of damage, loss, or delay
still remains. Damage or loss to cargo can be either due to natural causes or due to
breakdown of or accidents on the transportation vehicle (train, truck,
airplane, ship).A good cargo
insurance, to an extent, helps protect the shipper against all the things that
can possibly go wrong during transportation. It helps minimise risks and losses due to accidents, natural calamities, and damages during transportation.
It works as a shipper's lifeline till the goods reach the designated destination
and are handed over to the specified recipient as per the Bill of Lading.<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>Of course, this
protection comes at a cost and only if the shippers have acted in good faith and
have been prudent!However,
choosing a marine insurance cover is easier said than done. There are quite a
few combinations to choose from and too much fine print to read and understand. But, if a shipper keeps the following points in mind, then it becomes slightly
easier to choose a good cargo insurance policy.Sale
Agreement:&nbsp;The sale agreement plays a major part in deciding which party to the
sale is in charge of getting the cargo insured. In sale agreements where the
seller is responsible only for paying for the cost and freight (C&amp;F) or if he is responsible only for transporting the
cargo till the port of loading (FOB), then the onus of getting the cargo insured lies
with the importer/buyer. In cases where the sale agreement is cost, insurance,
and freight (CIF), then the responsibility of getting the marine
insurance cover rests with the exporter/seller.This point is
important as it determines which party to the transaction will be responsible for
arranging the insurance cover and how the claim process will be handled in case
of any damage or loss. Risks
Covered:&nbsp;The kind of risks and the extent of coverage is the one of the most
important points to consider when selecting a cargo insurance policy. The shipper should gauge the kind of risks that he may have to deal with and then
accordingly purchase an insurance policy that will help cover those risks. Frequency of
Trade:&nbsp;This is another aspect that can influence the choice of marine insurance
cover selected. If it is a one-time consignment, then the shipper can consider a
policy for that specific shipment only. If he has regular shipments, then he
can go for an open policy or an open cover.Arrangement
with Freight Forwarder:&nbsp;Though shippers are always advised to take
a policy for their own shipments, they can also check with their freight forwarder
for insurance cover options. Here, the coverage might be lower than what they would get if they bought their own cargo insurance policy, and
hence may not be sufficient to cover the losses in case a claim arises.Multi-modal
Transportation and Storage:&nbsp;If the transit requires multi-modal transportation,
then while choosing a cargo insurance policy, the shipper must also confirm and
check that the goods will be covered in all modes of transportation – rail, road,
air, and sea and while in storage during the transit time period.Assess Add-ons
Required:&nbsp;There are certain risks that may not form a part of the insurance policy
and may need to be covered separately. The party in charge of arranging for the
insurance cover must assess all the possible risks involved during transit and
the time in between with respect to location, transhipments, storage, and
political conditions of the countries involved in the trade. For example, if
one of the countries involved in the trade is going through riots or strikes
and the region falls on the route of the transportation – then it would be
prudent to get a cover against this specific problem. It may increase the
premium payable, but it will ensure that if the cargo suffers any damage due to
an unstable environment, the losses will be covered.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">Once there is
clarity on the above points, and the shipper has all the required information,
he can select from one of the following policies (most common types of cargo
insurance available in India) to insure his cargo. Specific Voyage
Policy: This
policy covers only one specific shipment. It is applicable only till the time
the shipment reaches the specified destination. As mentioned earlier, it is
ideal for shippers who do not export/import goods regularly.Open
Cover:&nbsp;Generally, a yearly cover is offered by the insurer to the shipper with
an understanding that the insurer will provide marine insurance (separate
policies) to both import and export shipments. Under this cover, a separate policy
for each consignment is created and a premium is collected for that specific
shipment.Open
Policy:&nbsp;This insurance policy is not applicable for international
transportation. It can only be taken by shippers who are transporting goods
within the country. It is generally an annual policy and covers movement of
cargo declared during the policy period.Annual
Policy:&nbsp;This type of policy is applicable only for goods being stored or shipped
from a specific place and where the title of goods belongs to the shipper (exporter/importer) who has taken the policy.While insurance
provides a safety net for the shipment, it comes with a set of rules that need
to be followed. If there is any instance of negligence from the insured, then
the insurance policy can be declared to be void.Shippers need to keep the following points in mind to get maximum benefit from their
insurance policies:<ul><li>Provide the correct details of the shipment with respect
to weight (net and gross), number of packages, nature (perishable, hazardous or
dangerous cargo). </li><li>Provide the correct details of the final destination and
the end recipient of the cargo. </li><li>Insure that the packaging of the cargo has been done
keeping trade guidelines and safety of the product in mind. </li><li>Insure that all the required labels and markings have
been put on the package. </li><li>Insure that all additional handling instructions have
been provided to the carrier and its agents. </li><li>Any other information that may have an effect on the
insurer’s decision to insure the cargo and give the insurer’s ability to
understand the kind of and extent of risk they are undertaking by insuring the
cargo. </li></ul>It is important to note that all
marine insurance claims are verified with the information provided at the time
of taking the cargo insurance.

Cargo Insurance: A Safety Net For Sailing

Indian
taxation system is undergoing a reform phase. With GST the government aims to
bring the country under a single tax system, simplify the rules for
implementation, payment and collection of tax, curb tax evasion, and streamline movement of goods within the country. The e-way
bill is an effort to monitor and smoothen movement of goods under the GST regime.
It is an electronic way bill required for transportation of goods worth
more than INR 50,000 (single invoice, bill, delivery challan) in the same transport
vehicle by a registered trader or transporter. The e-way bill can be generated
via the e-Way Bill Portal. Once an e-way
bill is generated, a unique e-way bill number (EBN) is created for the invoice.
The EBN is available to the seller, the buyer, and the transporter assigned to
transport the consignment.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px">Initially
planned to be rolled out in February’18, the e-way bill had to be put on hold
due to technical glitches in the system. The rules laid down for the e-way bill
had also raised some concerns in the industry and logistics sector. To address
the concerns of the trade and road transporters the Central
Board of Excise and Customs (CBEC) released amendments to the draft policy on 7th
March 2018. Some of the changes in the rules in the e-way bill notification
released on 7th March 2018 are: 1. 
An e-way bill will not be required for
transport of a consignment interstate if the value of the consignment is less
than INR 50,000.2. 
For intra-state, a transporter is not
required to generate an e-way bill if the value of an individual consignment is
less than INR 50,000 even if the overall value of all the consignments in the vehicle
is more than INR 50,000.3. 
An e-way bill will not be required for
transport of goods up to a distance of 50 Km.4. 
Validity period of the e-way bill
is set to 72 hours from generation or till goods delivered.5. 
For generation of e-way bill, only the
value of taxable goods will be taken into account.6. 
An e-way bill will not be required for transit
goods from or to Nepal and Bhutan.7. 
An e-way bill is made mandatory for the
inter-state movement of goods between job worker and principal even if the
value of goods transported is less than INR 5o,000. An e-way bill can be
generated by either party.8. 
An e-way bill is also made mandatory
for inter-state transport of handicraft goods by a trader who is exempted from
registering for GST.9. 
Transporters will require permission from
the supplier to generate Part-A of the e-way bill.

Read the
complete CBEC notification released on 7th March, 2018, <a href="https://www.cogoport.com/en-IN/blogs/amendments-to-eway-bill">here</a>.Revised dates for roll out of the e-way bill were announced in the 26th GST
Council Meet on 10th March 18. The Council has proposed rollout of
inter-state e-way bill from 1st April 2018, and 15th
April for the rollout of the intra-state e-way bill. The intra-state e-way bill
will be rolled out in phases, list of states and the e-way bill applicable
dates will be announced by the CBEC.

e-Way Bill Update: CBEC Amends e-Way Bill Rules

In this era of online shopping, we’ve all
experienced the inconvenience and disappointment of receiving a damaged, short,
or incorrect product - courtesy of poor or insufficient secondary&nbsp;packaging.&nbsp; While this matter can be resolved with a sales return,
it leaves a poor impression of the seller. If this happens regularly, it is
motivation enough to switch to another shopping portal – even if the products
on offer are of quality. Now imagine this situation in an international
trade transaction, where product orders are time bound and transit time is
long. How would you feel if you’re the buyer? And more importantly, how would
your business fare if you’re the seller? In either case, not very good.In any kind of trade transaction, especially where
international logistics is involved, secondary packaging forms an essential part of a complete
product or a shipment. A good outer packaging not only safeguards the product
from damages, but also helps create a positive brand image.<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> Apart from the above reasons, here
are a few more benefits of good external packaging that you must be aware of:1. Eases Transportation and Reduces Cost:&nbsp;It is easier to handle and transport goods –small or large, if they are
properly packaged. Good packaging also reduces the time taken to load and
unload cargo on different modes of transport and ensures that the product
reaches the end customer undamaged. Along with making transportation easy, proper packaging also reduces handling costs.&nbsp;2. Reduces Risk of
Pilferage and Theft:&nbsp;A strong external packaging
that cannot be tampered with, helps reduces the chance of pilferage and theft.
It is especially important for valuable and small products, where the risk of
theft is high. 3. Maintains Quality and
Product Standard:&nbsp;Good external packaging helps
preserve the quality and standard of the product. It safeguards the products
from extreme weather conditions like excess rains, heat, moisture, and reduces
the risk of damages due to accidents. In case of perishable goods, it also protects the
product from decay and from losing its shelf life value. 4. Facilitates
Timely Delivery:&nbsp;Correct and necessary handling
instructions, weight and dimensions, and complete delivery address are an
essential part of an effective external packaging. Packaging that contains all
this information makes it easy to handle the product at every transhipment
point and ensure that it is delivered to the right recipient. Another point of import is to understand the extent
of loss that can occur due to faulty packaging. For example, according to an
analysis by TT Club, a transport and logistic insurer, of their own insurance
claims revealed that “65% of damages to cargo result from poorly packed,
blocked or secured cargo in CTUs, particularly freight containers”. If you’re still not convinced about the benefits of
a good packing, then the fact that the Indian packaging industry, estimated to
be worth $25 billion, is growing at 15% p.a. and is expected to touch $30 - $35
billion by 2020, should help drive home the need, importance, and consumer expectations
related to packaging.To sustain and build your business in international
trade, it is not only important for you to understand the importance of good
packaging but also know how to choose the correct type of packaging for your
shipment. Some important points that you need
to consider before selecting the packaging type and material are: 1. Type of Product:&nbsp;The kind of
packaging that you select should be in sync with your product. Packaging is
different for general products, machinery, spare parts, perishable goods,
liquids, and hazardous cargo - each of these products have their own
requirements, one solution cannot work for all. For example – perishable goods
need to be packed in an insulated container, glass or fragile products require
thicker containers or a double packaging. 2.&nbsp;Eco-friendly:&nbsp;When choosing packaging material, it is also necessary to ensure that the material you select for packaging is eco-friendly, reusable, recyclable and does not violate any environmental laws.3. Mode of Transport:&nbsp;Apart from the product type, the mode of transportation also influences packaging choices. Packaging differs for Ocean and Air transportation. While air transport requires light packaging and can do with less sturdy material, ocean transport requires more sturdy packaging which can withstand the extreme weather conditions at sea and the long transit times.4. Importing Country’s Packaging
Requirements:&nbsp;It is imperative to know if the country that you are shipping
to has any specific rules and regulations regarding packaging with respect to
material, palletisation, and labelling on the packages, etc. 5. Specific Buyer Requirements:&nbsp;Some
importers specify the packaging requirements for the the cargo that they are
buying. This can be in addition to the packaging rules and regulations of the
importing country. If you are an exporter it is important for you to get
clarification on these requirements and follow them while packaging the
products. The importer can refuse to accept the cargo if it is not packed as per
the given specifications. 6. Costs:&nbsp;While all the above
points are necessary to ensure that the cargo reaches the destination port without
any damages or loss, you also need to consider the costs required in the
packaging and ensure that it does not hamper your bottom line or margins.7. Type of Shipment:&nbsp;The type of
shipment –<a href="https://www.cogoport.com/en-IN/product/logistics/cross-border/ocean-fcl">FCL (Full Container
Load)</a> or&nbsp;<a href="https://www.cogoport.com/en-IN/product/logistics/cross-border/ocean-lcl">LCL (Less than
Container Load)</a> also plays a role in
determining the kind of packaging. As compared to FCL, a sturdier and stronger
packaging is required for cargo that is being transported in LCL shipment as
your cargo will be sharing a container with other shipments. <img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">Like primary packaging, secondary packaging is also
a critical component of the entire business cycle. It not only safeguards your
product, but it also protects your business brand and reputation. Hence, it is
necessary to make secondary packaging an integral part of your product offering
and work towards finding new, innovative, safe, and cost effective packaging
solutions. 






After your goods are packaged, marked, and labelled properly,
it is our responsibility to get them delivered to the final destination. All
you need to do is <a href="https://www.cogoport.com/signup">sign up</a> on
Cogoport and share the shipment details, we’ll manage the rest!

Secondary Packaging in International Shipping

Another busy week in Rotterdam. Looking at my full schedule I was thinking about how digitalising my life has helped me save so much time. I order my groceries online and they get delivered right to my kitchen, which saves a hours a week. Same goes for getting somebody a present (not for Christmas yet). My favorite e-tailer has an app for that. A few clicks and everything is arranged. And at work I’m trying to do the same for importers and exporters all over Europe. Letting them book container shipments with just a few clicks.<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>Talking about saving time: let’s go straight to the logistics news highlights for this week<h3>Sustainability</h3>The attention for sustainability issues is still on the rise, which is a good thing. We only have one planet, so we should use it wisely. Both ports and shipping companies have their eye on the green ball, but not all measures taken are favorable for shippers. I do however fully agree with the first concrete action of the World Ports Climate Action Program mentioned in the first article below. Increasing the efficiency of using digital tools is just what we are doing here at Cogoport.“It is important to note that Los Angeles/Long Beach joined six other international ocean cargo gateways in the initiative called the World Ports Climate Action Program. This represents the creation of In their release today, the seven ports have agreed to focus on five concrete actions: 1. Increase efficiency of supply chains using digital tools. 2. …”→<a href="https://www.supplychain247.com/article/international_ports_inspiring_deeper_commitment_in_support_of_the_paris_agr">International ports inspiring deeper commitment in support of the Paris Agreement</a>“The International Maritime Organization, the United Nations agency that regulates global shipping, will require that ships in international waters emit no more than 0.5% sulfur by 2020.The mandate is poised to disrupt the maritime industry, which has long relied on cheap high-sulfur bunker fuel with sulfur content around 3.5%. The major lines are now facing hard decisions on how to meet the mandate.”→<a href="https://www.freightwaves.com/news/k-line-msc-2020">Major shipping companies outline plans for meeting the IMO's 2020 low-sulfur mandate</a>This does have an effect on shippers, as carriers are adjusting fuel surcharge, for example<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a><h3>Carrier Rates and Surcharges</h3>“Carriers impose [fuel surcharges] unilaterally without any negotiation with shippers and ignore a market approach to the global problem.The future of higher-cost low-sulphur is a multi-billion, complex issue in international maritime transport and it can only be addressed and understood by shippers if carriers provide cost transparency on their fuel spend and the cost impact of the new IMO low-sulphur regulation”→<a href="https://www.supplychain247.com/article/new_ocean_cargo_carrier_surcharges_in_january_have_supply_chain_managers_co">New ocean cargo carrier surcharges in January have supply chain managers concerned</a>“The containership industry may finally end a lost decade of investment returns as demand accelerates and ocean carriers keep a lid on supply, according to one market expert.&nbsp;With the exception of 2010, operating profit margins have averaged between 3% and 4% over that period. But the benchmark is an operating margin of 10%, which is closer to the industry’s capital cost... The spread between what liner operators earned and what it cost them to deploy ships accrued to the customers who received a service at a rate below what it cost to provide...”→<a href="https://www.freightwaves.com/news/containership-rates-outlook">Customers to pay up as container lines seek better returns, warns shipping expert</a><img src="https://app.cogoport.com/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" alt="" width="300px"><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>Christmas is Coming</h3>Preparations for Christmas are in full swing though for a lot of people working in logistics. One of the two articles I read about the upcoming holiday period talks about how major logistics providers have started hiring additional staff already. It also gives tips on how companies can prepare their supply chains for the holiday season. Most of these can be solved right on the Cogoport platform: “Give customers visibility to their orders” and “Prepare to use the spot market to make up for excess demand not covered by carriers” and “Get more rates by connecting with more carriers”. Just saying… ;-)“The time for holiday hiring has arrived, with three of the biggest households in the freight transportation and logistics sectors-UPS, FedEx, and XPO Logistics, each making announcements to that effect over the last few days.”→<a href="https://www.supplychain247.com/article/its_almost_october_and_holiday_hiring_has_arrived">It’s Almost October and the Holiday Hiring Has Arrived for the Transportation &amp; Logistics Sector</a>“A container supply chain would commonly require around a week for a box to be moved from arrival port to an inland distribution centre where it is unstuffed and the goods forwarded. Given the four-to-five week sailing time from Asia to North Europe, the last boat from China is effectively the end of October.”→When should importers start shopping for Christmas shopping?<h3>Seagulls</h3>Last week I wrote about&nbsp;<a href="https://www.cogoport.com/blogs/ocean-freight-roundup">autonomous container ships</a>, and the article below made me think of that immediately. I’m guessing there is a good chance autonomous ships are designed with seagulls in mind…“Birds, too, can confound computers. In Boston, NuTonomy had to reprogram its cars to disperse stubborn seagulls. ”For the local breed of unflappable seagulls—which can stop autonomous cars by simply standing on the street, unbothered by NuTonomy’s quiet electric cars—engineers programmed the machines to creep forward slightly to startle the birds,” reports Bloomberg.”→<a href="https://qz.com/1397504/all-the-things-that-still-baffle-self-driving-cars-starting-with-seagulls">All the things that still baffle self-driving cars, starting with seagul</a>l

Sustainability, Carrier Rates, and Seagulls

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

 Glino Karjadi: Digitalisation in Shipping

Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinars look at some of the answers.&nbsp;
Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinar looks at some of the answers.&nbsp;
As the world becomes more and more connected, and with advances in technology, trading around the world has become easier. From the biggest corporations to the smallest firms exporting and importing can be managed simply at the click of a mouse.
Platforms like Cogoport&rsquo;s marketplace community help ease the logistical challenges of doing business globally.&nbsp;
&nbsp;However, many businesses face several challenges, including managing trade finance. Getting it wrong can be costly to your business.&nbsp;
<h3>So what risks do exporters have to bear in mind when thinking about their trade?</h3>
<h3>1. The trading environment</h3>
Not everywhere may be as stable as your home market. Consignments can get lost or held up, payments can be delayed or complicated or communications difficult. Before taking on a transaction overseas, an exporter does well to think about and plan for: the ease of doing business due to the efficiency of local systems covering customs, banking and transportation communications reliability in terms of telecoms and shared understanding the stability and transparency of the regulatory environment whether any major players control aspects of the market already.
Solution: As well as conducting due diligence, consider working with an agent or partner who understands the market which you are entering.&nbsp;
<h3>2. Fluctuating finance risks</h3>
Currency volatility has always been a concern for exporters, especially when consignments have to travel a long way or run the risk of delays in port or customs. With high-value shipments, variations of just a few percentage points can represent a significant risk to an exporter.
Solution: Investigate a hedging strategy with your bank or finance partner. You can also attempt to negotiate terms with your consignees that share some of the exposure.
<h3>3. Borrowing Risks</h3>
Borrowing risks, also known as credit risks, are derived from the possibility of financial loss. This is due to failure to repay borrowed funds or meeting contractual obligations. Even if you do eventually get paid, the delay in your cash flow can be a nightmare when you have staff and suppliers to pay!
Solution: Have a solid understanding of whom you are dealing with and their ability to pay on time. Assess their creditworthiness, gather informal intelligence among your contacts to see what reputation your consignee has and price your goods accordingly. Our webinar will also touch on strategies to manage these risks.&nbsp;
Assessing trade finance risks is essential for successful business growth and development. Want to know more in detail about international trade finance and its risks to protect your export business? Join our webinar to get the best information from experts in the market!
<a href="https://cogoport.com/signup" target="_blank" rel="noopener"><img style="width: 968px; height: 563px;" src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/2713a36d511fb707b332ec011bdef06c/cogo-trade-finance-1.jpg" alt="cogo-trade-finance-1.jpg"></a>

3 Trade Finance Risks Exporters Should Beware of

The Trump tariffs have shaken the international trade industry for the worse. But there is more to the story of the current unimpressive global economy.&nbsp;Following decades of globalisation-led growth, the tide has turned. The World Trade Organization (WTO) reports global GDP growth down from 2.9 per cent in 2019 to 2.6 per cent in 2019 and 2020.<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 ongoing trade war between China and the USA, the two world’s largest national economies, clearly causes pain for exporters. Tariffs and other trade barriers push import costs up, and exporters struggle to find buyers as their products become uncompetitive. Retaliatory actions between the two economic giants have escalated tensions in the past couple of years and contributed to a worldwide slowing of trade.The USA is at its most protectionist in a century, imposing almost 25 per cent tariffs on most of what it imports from China.But reduced export activity is not all because of President Trump’s trade strategy. Other factors have also had an impact on export activity.&nbsp;<h3>It's Not All Tariffs</h3>The Chinese economy is increasingly driven by domestic consumption as its middle class continues to grow and becomes more affluent. China can meet more of its needs from within and become less dependent on imports. And, as Chinese growth has slowed to its lowest for almost 30 years according to <a href="https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reports</a>, its demand for input materials and capital goods has reduced.&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-1.png" width="auto" style="width: auto; height: auto;"></a>Rising nationalism, often fuelled by concerns in developed markets over globalisation, tends to make some markets more insular. Uncertainty hurts trade, so the unknowns around the UK’s expected no-deal departure from the European Union are adding to the slow down.&nbsp;&nbsp;&nbsp;Global trends can be amplified by local tensions too. For example, shipments to Hong Kong, a key Chinese destination, were <a href="https://www.business-standard.com/article/markets/hong-kong-unrest-is-worrying-india-s-jewellers-shipment-down-6-6-119090400867_1.html" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reported</a> to be down by an additional 6 per cent year-on-year in September 2019 because of the pro-democracy demonstrations in the city.&nbsp;Other trends have a bearing too. Globally, the threat of climate change has focused many people’s minds on the distance their food (and other products) travel. A ‘conscious consumption’ movement sometimes described as ‘locavore’ has emerged and gained traction. It boosts the local production of foodstuffs and reduces imports. Food exporters are hit by the sentiment of an increasingly progressive consumer population.&nbsp;<h3>Localisation and in-country investment offer an alternative</h3>As rising wages in China have forced multinational companies to look elsewhere for lower costs, India, Vietnam, Bangladesh and the Philippines have all been winners. And, as these countries experience growth, their citizens join the ranks of the consuming middle classes. Market entry specialists are thriving by offering a bouquet of services - market research and company registrations, tax planning and legal advisory - to foreign investors.Around the world specific forces are having an impact:<ul><li>In India, the Make in India program encourages companies to establish manufacturing in the country.In the European Union, France and Germany are actively encouraging Foreign Direct Investment with policies that make it easier for overseas companies to set up.</li><li>In Africa, Kenya is positioning itself as the strategic gateway to East Africa and hunting foreign investments.</li><li>Mexico is seeking to reduce its dependency on the USA as an export market. The government of Andrés Manuel López Obrador is inviting foreign investment into the country as a staging post to Latin America.</li></ul>Across the world, the terms of trade and investment are morphing.<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>Establishing bases in target markets offers a range of benefits. Manufacturers are exempt from import tariffs and may attract tax and other incentives. In-market production brings manufacturers closer to their customers and reduces logistics and other administrative costs.&nbsp;<h3>New Markets Offer New Opportunities</h3>Of course, there are alternative strategic responses to protectionist policies.&nbsp;If they look carefully, exporters may find that there are other demand hotspots, which they’ve traditionally not explored. Rising incomes in so-called emerging markets mean there are millions of affluent consumers driving demand for a host of goods and services. And for new consumers for whom choice has been limited, imported goods—from fridges and fashion to whisky and wines—often hold great appeal as a symbol of their newly-minted status.&nbsp;Across Eurasia, the Belt and Road Initiative (BRI), the largest infrastructure plan on the planet, is rapidly opening up new trade routes by sea and overland. Some are long-lost connections that formed part of the ancient silk route. Others are new networks that form a part of what author Peter Frankopan has dubbed The New Silk Roads.Exploring new markets may offer a hedge against current uncertainty without requiring a fundamental shift in the business model. Other approaches require a greater pivot.As a growth strategy, it requires a different type of business model from the traditional activities of import/export. But, for brave and ambitious exporters who find barriers to trade appearing where in the past none existed, local establishments could be the answer to their prayers.

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