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.
<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>
## 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

Ocean freight is the most common mode of transport that importers and exporters use. A full 90% of everything is, in fact, shipped by ocean freight and sea freight. Everything around us from what we eat, wear, seat and touch been transport. Cogoport is about empowering each and everyone choice.<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>Started in India, Cogoport helps coordinate the complexity required to move freight across varied network of logistics asset owners. As, no company is big enough to have all the assets required—trucks, container ships, trains, warehouses, and more— multiple asset owners.For every element of international cargo, the process would include customers&nbsp;having to find a truck in both countries, booking freight across the ocean, passing through customs on both sides of the ocean, storing goods in warehouses, and finally arranging the final delivery.On top of that, competitive rates have to be secured and the pricing needs to be clearly known to the end client, to make sure it’s plausible. For a traditional freight forwarder, all of the complex coordination is done using the conventional modes like phones, emails, fax machines, and physical pieces of paper, which are a hassle in itself. To date, there has been more take up of tracking technology in air freight than ocean or sea freight. So, how do we end this extremely fatiguing game?Cogoport is the solution!<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">We are improving experience by bringing in softwares, not only promoting automation but also improving the user experience for customers moving freight, subsequently providing transparency, the most necessary element. As a result, our online dashboard gives customers more visibility and control over their structured supply chain than ever before, with transparent pricing and quick tracking.We help in lowering transaction costs and committing fewer errors, thanks to software-driven automation that augments human capabilities. Furthermore, we build specialised softwares, as we have a dedicated team of engineers that strives continuously to develop quality products best suited for our customers and serve them better.Cogoport promotes swiftness by bringing together human expertise and its fully online platform, with instant rate comparisons and live tracking, thereby providing complete transparency to ensure a smooth freight forwarding. In only a couple of months, we have become the most favourable to do business with, in this industry. We are not only making ocean freight hassle-free, but are preferred because we are quick and affordable. We are on the track to win as we have mastered not only the logistics behind ocean freighting but also, most importantly, the experience! We innovate to make you successful.

Hassle-free Ocean Freight: We Make You Successful

One of the questions we get a lot at Cogoport is what the difference is between Cogoport and regular or digital freight forwarders. You can book a container shipment at a freight forwarder as well, right?Well technically, yes, you can. But there are a LOT of differences. I’m happy to take you through some of them.<h2>All Suppliers vs. Preferred Suppliers</h2>Freight forwarders may have contracts with certain carriers, which can result in the fact that they will favor these carriers. They have a direct commercial interest in which carrier you choose.If you use the Cogoport platform you can book shipments with all carriers on the platform. Cogoport has no contracts that would cause us to promote a certain carrier. We present you with all the options and the choice is yours. We empower customers to make their own free choice.<h2>Specified Rates vs. All-in Rates</h2>Freight forwarders often give you all-in rates. You get a price for your shipment without really knowing what you are paying for.If you use the Cogoport platform you get a full and transparent breakdown of all the cost involved in your shipment. All charges to you are clear and specified. Our promise to you is: no surprises. There are never any additional charges for any reason after the shipment is booked. What you see is what you get.<h2>Full price comparison vs. Ocean freight price comparison</h2>Freight forwarders often let shippers choose between different ocean freight rates. The total landed cost of each shipment, however, can be very different.If you use the Cogoport platform you not only get the ocean freight rate but also complete insight into all other related costs, whether they are at the port of origin or the port of destination. That way you can base your decision on the total landed cost. Not only port-to-port but door-to-door if you want.<h2>Pro-active vs. Reactive Notifications</h2>Booking a shipment at a freight forwarder usually involves many phone calls and emails. The same goes for tracking your shipment.If you use the Cogoport platform you get full visibility for all your shipments. For each shipment, there is a clear overview of all the milestones and it’s easy to find a detailed track and trace information if you need it. You will also get an instant notification if there is an issue with one of your shipments. You can have peace of mind and use your time to focus on other matters. As long as you don’t hear from us everything is fine.<h2>The 4 main differences between digital freight marketplace Cogoport and a freight forwarder</h2><ol><li>An unbiased overview of all available carriers</li><li>Specified rates. What you see is what you get.</li><li>Choosing a carrier based on total landed cost.</li><li>Peace of mind. Pro-active notifications if a shipment needs your attention</li></ol>

Difference Between Freight Forwarder and Cogoport

Supply chain has seen
tremendous transformation in the last decade. A lot of this transformation can
be credited to digitization. By introducing advanced technology in
the supply chain cycle at various crucial stages, work has become efficient and
cost effective. Digitization
and The Shipping Industry Supply Chain Sea transport accounts
for 90% of the trade. Shipping is complex in nature. The industry suffered
greatly due to the&nbsp;<a href="https://www.spiegel.de/international/business/that-sinking-feeling-global-crisis-hits-shipping-industry-hard-a-594710.html">global financial
crisis of 2008</a>. It is still playing catch up. The established way of
managing the industry supply chain does not seem to be profitable anymore. Understanding
the need for change and to reinvent itself, the shipping industry has started
to open its doors to digital disruption. It is now working towards creating a
digital supply chain. A global&nbsp;survey titled “Competitive Gain in the Ocean Supply Chain: Innovation That’s Driving
Maritime Operational Transformation”, conducted by Cargotec’s Business
Performance Innovation (BPI) Network and Navis and XVELA, highlights the
industry’s changing attitude towards digital.&nbsp;The respondents - who are in some
capacity or the other related to the shipping industry, pointed out the areas
which need improvement and can benefit from use of better technology. According
to the survey, the five areas that the industry needs to work on are - carrier to terminal coordination, supply
chain visibility and information sharing, terminal operations, cargo flow
visibility and predictability, and coordination across carrier alliances.Some of these issues
are being addressed.For example, earlier,
once shippers had handed over their shipment to the shipping line, tracking its
location was not easy. At most, they could get an update from the shipping line
on the location of their shipment when the ship called at a port. But now,
advanced technology has made it possible for them to get&nbsp;<a href="http://gpsworld.com/shipping-container-tracking-on-verge-of-big-increase/">real-time information</a> through a container GPS
tracking system on the location of their shipment. They can track the shipment
on their own. Process automation is
another area that shipping lines are exploring. Inventory management across
locations and providing freight quotes and shipment booking online are some of
the processes that are going digital. The industry has also
caught the fancy of the global start up world. There are start ups that are
working on managing documentation, offering&nbsp;<a href="https://www.cogoport.com/">freight comparison</a>, integrating different modes of
transport, and aiding customs clearance. While changes are
being implemented, digital adoption is slow and it is not yet uniform across
the industry and does not provide a common platform for all the parties
involved. Will Digitization be Beneficial for the Trade? Mostly, yes. It will
provide a solution for some problems and may not help address some others. There
are&nbsp;<a href="https://www.lloydsloadinglist.com/freight-directory/news/Digitalisation-‘no-panacea’-for-vessel-supply-demand-imbalance/68259.htm#.Wf9l_K2B1mA">doubts</a> that digitization
will not help resolve two of the main pain points of the industry – supply
demand imbalance and optimum vessel utilization. But, other simpler processes
and issues do stand a chance to improve with digitization. According to a&nbsp;report by Accenture, if the
industry can “standardize” its systems and processes, it will be able to create
an online value proposition for its customers. This standardization coupled
with digitization has many benefits for both the customer and the shipping
lines. Some of the main benefits of going digital are: 1. 
Time and Transparency:
A
digitized process has to be standardized, else it does not work.
Standardization helps create transparency in the system. It reduces the scope
for human errors, manipulation of prices and inventory. Digitization will
ensure a speedy completion of tasks. 2. 
Documentation
Management:&nbsp;Documents
are a major part of shipping. Maintaining multiple documents and filing them
takes up both time and space. Taking the process online will help save on both.
In future, it can also help create an integrated documentation platform
that can be accessed by all the parties (exporter, importer, shipping lines,
ports, banks, storage) involved in the transaction. Thus, paving the way to a
paperless system. 3. 
Door – to – Door
Tracking:
New technology is making it possible to track containers on a real time basis.
This will go a long way in helping customers provide updates to their
business partners and plan further logistics. 
4. 
Improved Analytics:&nbsp;Availability of data
from all touch points and tools to analyze that data to help make better
business decisions is one of the main offerings of advanced technology.
Shipping lines can use data collected from various sources to offer better
services, plan new trade routes, and allocate space. 5. 
Better Operational
Integration:&nbsp;Transporting
a shipment from one location to another involves participation of different
modes of transportation and handling at different touch-points. If all of the
services can be integrated, it will help provide a seamless experience to the
shipper and reduce loss arising out of delays and operational inefficiency for
the service providers. It will also help various service providers – ports,
road &amp; rail transporters, storage, and shipping lines to plan better and
ensure maximum utilization of their space and equipment. 








Going digital can
help the shipping industry become efficient and reduce cost for certain
processes. But, the benefits from these changes can be reaped if the industry
as a whole adopts new technology.

The Digital Supply Chain: Benefits for Shipping

<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/7928782654bd854eaabf72f874ad8196/Cogoport_7%20Facts%20About%20Shipping%20Industry_Blog%20creative-04%20%283%29.png" alt="interesting facts infographic" class="center" width=""> Reference:90% of Everything by Rose GeorgeStatista.comThe Internet!

7 Interesting Facts About the Shipping Industry!

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

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