January 14, 2011 -  The U.S. Census Bureau and Bureau of Economic Analysis on Thursday reported the country's exports of goods and services in November 2010 increased 0.8 percent from October to $159.6 billion, the highest level for monthly exports since August 2008 ($162.9 billion).

Exports to China for November also reached a record $9.5 billion.
U.S. imports of goods and services increased 0.6 percent over this period to $198 billion, decreasing the trade deficit 0.3 percent since October to $38.3 billion in November. The improvement in the goods and services trade balance was due to a record monthly surplus in trade in services ($12.9 billion).

"We have now seen a full year of private sector job growth, as well as GDP gains in each of the last five quarters," said U.S. Commerce Secretary Gary Locke, in a statement. "In fact, today's data shows that through November, U.S. exports of goods and services in 2010 surged almost 17 percent from their level in 2009, an increase of $239 billion."

In the coming days, Locke will meet with China's President Hu Jintao during his state visit to Washington. In February, he will lead a high-tech business development trade mission to India to advance the US trade agenda.

"In the years ahead, there are going to be hundreds of millions of people in India, in China and around the world moving into the middle class, and that represents an enormous opportunity for U.S. businesses," Locke said.

Januarry 17, 2011 - Oil price rally sparks a new round of ocean carrier surcharges that may be here to stay

When crude oil prices raced to more than $145 a barrel in mid-2008, bunker surcharges ratcheted up just as quickly. The economy and global trade were humming, and shippers and carriers were awash in profits.

Then the financial crisis hit, the economy tanked, and fuel prices went into a two-year swoon that had some questioning whether they were still relevant for a freight transportation industry enjoying a 2010 renaissance.

Put those questions to rest: With crude oil doubling to more than $90 a barrel in late 2010 from just above $40 at the depths of the recession, bunker prices are soaring, and all the slow-steaming carriers can employ isn't likely to cause the pain from higher prices to retreat any time soon.

Bunker fuel at the world's major ports now averages more than $500 a ton, although it has declined slightly since the beginning of the year as crude prices slipped, largely on profit-taking. But that's likely to be a short-lived respite for carriers and shippers.

"Bunker fuel prices are at $500 a ton and will only be heading north from here in the new year," Ron Widdows, group president and CEO of Neptune Orient Lines, said at a conference in New York late last year. As a result, "slow-steaming will be here to stay for some time." Shippers face steadily rising bunker surcharges this year because the global economic recovery has largely worked off the surplus of crude oil inventories existing since the recession started in late 2008.

By Peter T. Leach
The Journal of Commerce Magazine 

  

January 14, 2011 - PARIS - Canada's ability to boost its economy with an "ambitious" free-trade agreement with Europe is being stymied due to disagreements on the extent to which governments should open up procurement contracts to foreign bidders, says a business lobby group.

A divergent approach between foot-dragging Ontario and Quebec against the more aggressive West is expected to be a source of conflict behind closed doors in Brussels next week as about 100 federal and provincial negotiators cross swords with their European Union counterparts.

Outside those doors negotiators will have to contend with demonstrating Canadian and European groups that argue the deal is a threat to the environment and will limit the ability of governments to use tax dollars to create local jobs.

A Canada-EU deal, expected to be completed later this year, "will dramatically boost Europe's involvement in the Canadian tarsands - the most destructive project on Earth," stated a coalition of British groups that demonstrated Friday outside the London office of British Trade Minister Stephen Green.

The four western Canadian provinces are ready to open the door to major European Union corporations seeking government contracts for goods and services, said Jason Langrish, executive director of the Canada Europe Roundtable for Business.

Canada's willingness to negotiate procurement was the key concession that led the EU, which represents 27 countries with a total population of just under a half-a-billion people, to agree to negotiate a far-reaching deal with Canada in 2009.

The Canada-Europe trade deal is expected to reduce tariff and non-tariff barriers to trade in goods and services, as well as deal with contentious issues such as intellectual property rights.

Several studies have predicted a sharp increase in trade if the deal, first championed by Quebec Premier Jean Charest, is sufficiently far-reaching.

Hugo D'Amours, Charest's spokesman, said in a statement "we want to have an agreement as large and open as possible.

"The negotiations are well advanced and at this point we are not surprised that there is some issues . . . We are confident that the negotiations will be successful and that we will all reach an agreement."

But Ontario and Quebec are dragging their heels on the crucial procurement issue, according to Langrish. Ontario is reluctant to make an aggressive offer involving municipalities, while Quebec's concerns include giving European countries the right to compete for Hydro-Quebec contracts.

"The western provinces have brought a higher degree of ambition into negotiations than their counterparts. This reflects the composition and openness of the western economies, and the degree to which they are committed to growth abroad," Langrish told Postmedia News in an email.

Ontario and Quebec "have yet to show the same level of ambition, even though they will be by far the largest beneficiaries of the agreement.

Ontario Trade Minister Sandra Pupatello was unavailable to comment.

"I can tell you that Ontario is an active participant at the talks and determined to protect the interests of Ontarians in all sectors of our economy," said spokesman Tim Weber.

"Politics" is behind the east-west difference in approach to the Comprehensive Economic and Trade Agreement, or CETA, according to Langrish.

"Quebec and Ontario have older, more established economies with entrenched interests that are politically active and are resisting some of the reforms put forth in the CETA," he told Postmedia.

"In an Ontario election year, and with Charest with his challenges in Quebec, it can make it more difficult to move forward.

"Also, the Canadian manufacturing sector is based in Central Canada and has taken a big hit over the years. So some components, notably on the union side, are opposing the CETA.

"We feel the problem is not the CETA but the fact that manufacturing has become uncompetitive. These trade agreements are precisely what they require to become more competitive, not being further sheltered."

The four western provinces are ready to open the door to EU bidding for not only provincial government contracts but also for Crown corporations, utilities and goods and services contracts in the so-called MASH sector - municipalities, academic institutions, school boards and health.

However, various limits and thresholds are expected to be established by both sides.

Europe, for instance has said it can't agree to open contracts for transatlantic bidding below $8.5 million for construction projects, $300,000-$400,000 for government goods and services, and $600,000-$700,000 for Crown corporations, utilities and other government entities.

The Vancouver Sun

January 18, 2011 - THE Civil Aviation Authority of Singapore (CAAS) and Changi Airport Group (CAG) are jointly developing an Air Cargo Express (ACE) Hub, which is expected to boost Singapore's status as a key cargo hub in the Asia Pacific.

Under the Changi Airport Masterplan, CAAS has set aside 80,000 square metres of land for the development of the ACE Hub and its supporting infrastructure, while CAG is investing more than $25 million in the facility.

The ACE Hub is slated to be operational in the first half of 2012.

The cargo and logistics facility, which will be used by air express companies (AEC), will have direct airside access to enable the movement of cargo to and from aircraft, allowing AECs to reduce the time required to process time-sensitive shipments.

The new facility is also expected to help expand the reach of AECs into markets such as South-east Asia, South Asia and Oceania as well as improve operational efficiencies.

Ascendas Real Estate Investment Trust (A-Reit) will construct the facility - which is located beside the Airport Logistics Park of Singapore and within Changi Airport's free trade zone - while the facility operator will be a 'leading cargo carrier which already has major operations in Singapore', CAG said yesterday.

Other features will include special on-site facilitation by the Immigration and Checkpoints Authority and Singapore Customs as well as two new aircraft parking bays for easy access to freighter aircraft.

'The ACE Hub will enhance Singapore's competitive advantage in harnessing the critical air express cargo business and strengthen Singapore's position as a leading air cargo hub,' said Yap Ong Heng, director-general of CAAS.

For the 12 months ended September 2010, Changi Airport came in as the world's seventh busiest airport in terms of international freight traffic handled.

CAG's CEO Lee Seow Hiang added: 'The ACE Hub will enable our air cargo partner to cater for its future expansion in Singapore and capitalise on long-term growth opportunities from increasing intra-Asia trade growth.'

Last year, Singapore registered strong cargo growth, with airfreight movements climbing nearly 12 per cent year-on-year to 1.66 million tonnes for the first 11 months of 2010.

By NISHA RAMCHANDANI
The Business Times

January 18, 2011 -   The theft of cargo while in transit rose by 4.1 percent to record levels in 2010, according to the 2010 Annual Cargo Theft report released Tuesday by logistics security firm FreightWatch International.

According to the report, an average of 75 cargo theft incidents were reported per month across the transport industry, the most ever recorded.

The food and beverage industry was the most heavily hit by cargo theft, accounting for 21 percent of total theft activity, with an average loss value of $125,000 per incident, closely followed by the electronics sector, accounting for 19 percent of all cargo theft and an average loss per incident of $512,000.

"To address these cargo theft issues, we have seen companies utilize additional layers of security to mitigate risk," said Barry Conlon, CEO of FreightWatch. "The increase in protection combined with a decrease in total shipping during 2010, primarily due to decreased global demand, has forced cargo theft gangs become more aggressive and increase active targeting of unprotected loads."

While the rate of cargo theft continues to grow, data shows that the average value per loss declined in 2010. The Freightwatch report provides an analysis of cargo theft in the U.S. including theft rates per state, the most common locations for thefts and the areas with the highest risk..

 

January 18, 2011 -  Companies that qualify as AEOs show they are reliable trading partners. In return, they benefit from potentially smoother customs clearances and fewer inspections and general controls, writes Mark Brannan

Since 9/11, global trading companies have been faced with ever more stringent security requirements and calls for more transparency around the international movement of goods.

They must now provide much more elaborate data about imports and exports at increasingly earlier stages, so that customs authorities can carry out risk assessment and controls.

US customs authorities have led the way with initiatives such as the Customs-Trade Partnership Against Terrorism (C-TPAT), with participating companies having to comply with strict requirements and guaranteeing the security of their supply chain in return for reduced US border delay times.

The EU encourages manufacturers, exporters, forwarders and logistics service providers to apply for the status of Authorised Economic Operator (AEO). Although it isn't compulsory, companies that qualify as AEOs show that they are reliable trading partners and in return, benefit from potentially smoother customs clearances and fewer inspections and general controls.

AEOs benefit depending on the type of AEO certificate. There are three types:

- Customs Simplifications - AEOs will be entitled to benefit from simplifications provided for under the customs rules.
- Security and Safety - AEOs will be entitled to benefit from facilitations of customs controls relating to security and safety at the entry of the goods into the customs territory of the EC, or when the goods leave EC customs territory.
- Customs Simplifications/Security and Safety. AEOs will be entitled to benefit from both simplifications.

Applying for AEO status can be an arduous process, as applicants must prove that they have full control over stocks and the flow of goods, from goods-in via warehousing, assembly through to global dispatch, distribution and final fulfilment.

Aspiring AEOs are required to undergo a detailed self-assessment process, showing what steps they are taking to protect the movement of goods and data and how they ensure that their own staff and also business partners comply with security requirements.

This will be easier for companies that are already using a suitable IT system which documents all movements of goods, keeps track of all processes related to foreign trade, archives data and protects them from manipulation.

The direct benefits of AEO status are subject to much debate and there is scepticism across the supply chain industry about whether the process is worthwhile for most traders.

In the UK, traders already have, for example, access to good levels of simplifications and any benefits in this area would be minimal. Moreover, such benefits as faster customs clearances cannot be guaranteed at this stage.

Despite this, companies that do achieve AEO status often find that significant benefits can be derived from improved knowledge and mapping of internal processes, which, in turn, helps them to increase efficiency, improve security and reduce costs.

So far, the AEO pioneers are logistics service providers, the automotive industry and big business groups. As more and more companies achieve AEO status, there will be increased pressure on other partners in the supply chain to apply for themselves.

Despite much scepticism, it is likely, therefore, that AEO will ultimately become an industry standard, providing companies with an internationally recognised quality mark that will be part of business partner selection along the supply chain.

Having appropriate software systems in place - while not mandatory - is key for most companies to achieve AEO status. Setting up the appropriate risk management systems in-house is a crucial requirement that all AEOs must fulfil. And this is where software can provide key benefits.

So, for example, in order to ensure no business partners are listed on relevant sanctions lists, it is vital to have software that can automatically screen all addresses and individuals from all relevant business transactions.

Software systems that provide traders with direct interfaces to Customs, and process the corresponding responses, enable businesses to speed-up processing times, reduce non-compliance incidents caused by manual errors, and - through comprehensive electronic record-keeping - allow them to easily demonstrate due diligence and full track records.

In future, the IT systems of exporters and importers, carriers, forwarders, logistics service providers and government agencies will become increasingly interconnected.

Software systems are the only practical way in a modern business environment for companies to ensure that they can maintain compliance with customs regulations and demonstrate that they are reliable trading partners - not only eligible for AEO status, but generally providing more efficient, transparent and secure supply chains.


IFW

  

January 17, 2011 -  The Australian port of Brisbane re-opened today after a six-day closure because of flooding, but operations will not return to normal for some days.

Shipping channels in the Fisherman Island sector of the port have re-opened, but other parts of the river and port first had to be surveyed and cleared.

The port said: "Upriver areas are showing signs of debris and siltation; however, we are confident that shipping could be allowed in these areas from tomorrow.

"Hydrographic surveying teams are continuing to locate sunken debris throughout the port. The PBPL dredging fleet has been successful in removing major obstructions from the main channel and Fisherman Island precinct.

"The channel depths may be temporarily reduced, and ships restricted to tidal movements in the coming weeks, as debris and silt continues to travel downstream.

"These restrictions are not expected to prevent entry of any vessels on our forward schedule for the coming weeks."

Ship movements are being co-ordinated by the Harbour Master with the order of arrival based on safety.

DP World told IFW its container facility at the port was open and operating.

    

January 19, 2011 - The Maritime Department of Thailand is delaying implementation by 60 days of a new insurance requirement that resulted in widespread protests by ocean carriers, logistics providers and shippers of chemicals and other hazardous materials earlier this month.

According to an announcement by the Maritime Department, and confirmed by carriers and others, enforcement of the new regulation has been moved from February 11 to April 12.

In recent days, a number of carriers have begun to announce continuation of acceptance of booking applications for dangerous goods loaded or unloaded at Thailand.

The regulation, introduced in 2010, would require all ocean carriers transporting dangerous goods to and from Thailand to have insurance covering anyone effected by the loading and discharging of dangerous goods.

Carriers, agents and other concerned parties have vigorously protested the proposed trade rule, which requires insurance providing advance payment without any proof of fault, among other conditions.

BDP is actively monitoring the evolving status and potential impacts of the regulation. Additional advisories will be forthcoming as verifiable information becomes available.