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?

Importance of Trade Finance: How It Supports Global Export-Import Business

Shipping is an important and critical part of the global supply chain. How it is managed impacts the marketability of the product, brand image, relations with buyers, and the profit margin of the exporter.
Ocean freight rate, ancillary logistics costs, and end-to-end management of the shipment from pick up to delivery at the final destination become deciding factors in successfully delivering a shipment to its final destination.
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<h3>Why is the Ocean Freight Rate Important?</h3>
Transportation costs are a vital component of the complete cost of taking the product to market. Ocean freight rate is an integral part of the aggregate transport cost.
Although an estimated ocean freight rate is built into the product manufacturing costs, given its volatile nature and impact of currency exchange rates, it keeps changing frequently. When the actual shipment is delivered at a rate higher than estimates taken into account, it reduces the profit margin of the exporter.
This is why procuring freight rate at the right time and from the right service provider is an important part of the entire global supply chain.
Till recently, to ensure that they get the best possible freight rate, exporters would initiate the freight rate enquiry, negotiations, and procurement at least a month prior to the shipping date. The more conservative shippers would start the process as soon as their sales order was approved by the buyer.
Shippers with large annual volumes have the scope to negotiate a volume rate with their freight forwarders or shipping lines, thus they can, to an extent, safeguard their business against unforeseen changes in freight and currency exchange rates.
<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>
Unfortunately, the low volume exporters or new exporters cannot avail of contracted ocean freight rates.
<h3>What&rsquo;s Wrong with the Traditional Way of Booking Freight and Managing Shipments?</h3>
The archaic way of buying freight involved interaction and follow up with least 3 &ndash; 4 shipping lines and freight forwarders for rates. To successfully manage shipment delivery till its final destination, an exporter also had to invest time and effort coordinating with his inland transport provider (trucker), customs house agent, bank, and insurance agent.
Not only was this process tedious but it also required a dedicated resource (sometimes an entire team) to manage the complete logistics of transporting cargo from one point to another. Human errors and communication gaps between various process - service stakeholders further slowed down the process.&nbsp;
<img class="center" style="color: rgba(0, 0, 0, 0.439216); font-family: 'Open Sans', sans-serif; font-size: 25px; letter-spacing: -0.02em;" src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/fd6324a8675d27be6a05d8a309256687/Blog%20creative_Tech%20savy_R3-01.png" alt="Traditional Freight Booking Process" width="">
<h3>How is the Age-old Process Changing?</h3>
With technology taking over the traditional way of obtaining freight rates, getting a competitive ocean freight rate from different service providers has become easier, cost and time effective.
Advancements in technology has made it possible for exporters and importers to obtain rates within a matter of minutes from the comfort of their offices. Technology has also facilitated the current industry drive on integrating the different touch points of the global shipping process. Today, it has become possible for all the participants in the long drawn process of global shipping to connect on a single platform and perform their role in the business.
Apart from speed and process integration, the technological revolution in the freight industry has added efficiency and transparency to the entire freight booking and management process.
<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 1.png" width="auto"></a>
<h3>How is Cogoport Simplifying Freight Booking and Shipment Management?</h3>
Being the frontrunner of the technological revolution in the Indian freight industry, Cogoport is working on eliminating the many redundancies and inefficiencies plaguing the freight booking and shipment management ecosystem.
By integrating all the stakeholders involved in the end-to-end shipping process, Cogoport is simplifying freight management and creating an industry environment that is based on trust, transparency,&nbsp;and reliability&nbsp;with speed&nbsp;enabling informed&nbsp;and faster&nbsp;decision making.
It has brought together all the touch points of an international shipping transaction. On the platform, shippers can connect with shipping lines, freight forwarders, truckers, insurance agents, and CHAs. They can obtain rate quotes, place bookings, and track the shipment till its final delivery in real time.
Knowing how time consuming follow up with the multiple stakeholders is, the platform has, to an extent, automated most of the freight management process and empowered the user to search, select vendors, place the booking and track it real time.
<img class="center" src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/4ff7b2dd335da693a1cbd19415ffc8da/Blog%20creative_Tech%20savy_R3-02.png" alt="Cogoport Process" width="">
<h3>Salient Features of Booking and Managing Freight on Cogoport</h3>
1. Personalised Dashboard:&nbsp;Create&nbsp;your own integrated global logistics management dashboard to connect all the touch points in your global supply chain.
2. Instant Rates:&nbsp;Get freight rate quotes from multiple shipping lines in a few simple steps.
3. Vessel Schedules:&nbsp;Access the sailing schedules of more than 30 shipping lines in one easy click.
4. Container Tracking:&nbsp;Track your container in real time till it reaches its final destination.
5. Document Wallet:&nbsp;Get&nbsp;your personal digital space to maintain all your shipping documents.
6. Digital Invoicing:&nbsp;Receive, manage, and pay your shipping invoices digitally.
7. Analytics:&nbsp;Get access to market driven freight rate trends and your shipment stats all at one place.
8. RFQs:&nbsp;If you don&rsquo;t find spot rate for your port pair, you can raise a request for a rate quote. Cogoport will do the rest!
To better understand how Cogoport can optimise your international shipping process,&nbsp;<a href="https://cogoport.com/signup">register</a>&nbsp;on the platform and explore the features yourself. Or connect with our customer success team to get an overview of Cogoport&rsquo;s services and products. Go Digital, Go Cogoport!

Manage Exports and Get Rates easily: Cogoport

Cogoport Shipment Process: How to Book, Track & Manage Your Cargo Online

What a week. There were two big logistics events in the Netherlands and I spoke at both. At Mulitmodal Europe in Rotterdam I spoke about container optimization and the repositioning of empties. For those that weren&rsquo;t there I will write a blog post about it and share it here.
The other event was the ICT &amp; Logistics event in Utrecht where I spoke about how booking a container should be just as fast an easy as booking a hotel. A big thank you to the many people that came to the sessions.
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It&rsquo;s too bad both events were at the same time. I still got to meet a lot of new and interesting people, was interviewed about data and freight in the digital era and got a lot of inspiration from what other companies are doing.
Our new President of Supplier Relations &amp; International Growth Flemming Frost accompanied me to all events. Read more about Flemming in the post from our Founder Shekhar <a href="https://www.cogoport.com/blogs/welcome-on-board" target="_blank" rel="noopener">here</a>.
I didn&rsquo;t have much time this week, so there are less highlights then usual when it comes to news and interesting reading material that I came across this week. Anyway, here goes:
<h3>The Chinese Economy</h3>
&ldquo;Given that Chinese imports account for nearly half of all container imports moving over U.S. ports, one would be excused for prematurely jumping to the conclusion that U.S. port volumes are at great risk&mdash;as are the logistics and transportation jobs associated with moving Chinese imports from the port of entry to distribution centers and on to final demand markets. But let&rsquo;s not hit the panic button just yet.&rdquo;
&rarr; <a href="https://www.supplychain247.com/article/how_will_the_tariff_war_with_china_affect_u.s._container_ports" target="_blank" rel="noopener">How will the tariff war with China affect U.S. container ports?</a>
&ldquo;China&rsquo;s exports climbed 15.6% in October, versus the same month a year ago, in US dollar terms&mdash;way higher than what analysts expected. The real surprise, though, was the eye-popping 21.4% year-over-year leap in Chinese imports. That&rsquo;s odd given that China&rsquo;s economy is slowing abruptly again, which should translate to sluggish demand for goods from consumers and businesses.&rdquo;
<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">
&rarr; <a href="https://qz.com/1456033/despite-us-tariffs-chinas-trade-soared-in-october-it-may-not-last" target="_blank" rel="noopener">Despite US tariffs, China&rsquo;s trade soared in October. It may not last.</a>
<h3>Scrubbers</h3>
&ldquo;The decision on whether to invest in scrubber technology on containerships, ahead of the IMO&rsquo;s 0.5% sulphur cap on 1 January 2020, has resulted in ocean carriers adopting a &ldquo;polarised&rdquo; approach, according to an Alphaliner survey.&rdquo;
&rarr; Carriers still weighing up pros and cons of scrubbers vs switch to low-sulphur fuel
<h3>Logistics Tech</h3>
Gartner has published their predictions on strategic tech trends for 2019 again.
&ldquo;While most shippers, brokers, carriers, vendors, and warehouse operators will agree that the logistics industry is awash in emerging technologies, Gartner said its study focuses only on those trends that have substantial disruptive potential that is beginning to break out of an emerging state into broader impact and could reach a tipping point over the next five years.&rdquo;
&rarr; <a href="https://www.dcvelocity.com/articles/30215-gartner-flags-10-strategic-tech-trends-for-2019" target="_blank" rel="noopener">Gartner flags 10 strategic tech trends for 2019</a>
I couldn&rsquo;t agree more with the quote below, although I think that for the forseeable future there is more to be gained from automating processes, then automating vehicles. Automating processes is one of the reasons our platform increases efficiency.
&ldquo;Most transport companies say innovation and automation will help transform the industry by helping to boost productivity and reduce costs, according to the survey.&rdquo;
&rarr; <a href="https://www.dcvelocity.com/articles/30205-geopolitics-technological-innovation-top-global-transport-industry-concerns" target="_blank" rel="noopener">Geopolitics, technological innovation top global transport industry concerns</a>
One of the barriers blocking the adoption of new technology is one that we made sure is not applicable to our platform: investment. No need to invest. Joining the platform is free and the cost per shipment you pay for using Cogoport are a small percentage of the total cost you save using it.
&ldquo;Barriers to adopting technology persist &ndash; with transport companies citing the major challenges to adopting technology-driven innovation as cost and investment (71%)&rdquo;
&rarr; Automation to Define Future of Transport But There are Obstacles
And two infographics from the people over at FreightWaves on the rise of Transportation Tech.
&rarr; <a href="https://www.freightwaves.com/news/infographics/venture-capital-trends-part-2" target="_blank" rel="noopener">Transport Tech Rising: Venture Capital Trends (Part 2)</a>
&rarr; <a href="https://www.freightwaves.com/news/infographics/transpor-tech-rising-part-3" target="_blank" rel="noopener">Transport Tech Rising: Venture Capital Trends (Part 3)</a>
Photo by <a href="https://unsplash.com/photos/uUXB3EPgVp4?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener">Mikkel J&ouml;nck Schmidt</a> on <a href="https://unsplash.com/s/photos/container-cranes-rotterdam" target="_blank" rel="noopener">Unsplash</a>

The Chinese Economy and Logistics Tech

This Week in Ocean Freight (09/11/18): Key Market Insights & Shipping News

Developing a great website is the first step of creating an amazing online presence. Once the website is up and running it needs traffic, and the only way to achieve it is to have a top-notch Search Engine Optimization (SEO) in place. SEO is a perfect blend of art and technology to boost the organic traffic of the website so that it is visible on the Search Engine Result Page (SERP). A company’s website is the only visual representation of the company, which helps in gaining traction from consumers who are in need of its services- the only way to achieve this is to increase traffic by deploying various methods to make sure that the website is user-friendly while maintaining good response time.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>We, at Cogoport, know the importance of having a good SEO score, and use a plethora of methods to make sure, a user who searches for certain keywords, lands on our website. How are we able to achieve the perfect blend of website traffic and user-experience? We have incorporated industry-leading strategies to make www.cogoport.com a best-in-class marketplace for freight.<h3>Proper HTML Structure</h3>Every web developer dreads a website which lacks basic HTML structure and has innumerable errors. An improper structure opens countless pathways for page load errors and broken links. Also, Google’s crawlers pay no heed to a website which lacks structure. Therefore, the entire Cogoport website is written using semantic markup, meaning all the pages have a proper ‘header’, ‘main’, ‘nav’, ‘article’, ‘section’, ‘aside’, ‘address’ and ‘footer’. This has enabled us to score a high page rank score.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a><h3>Crisp Content</h3>Without a crisp and tailored content, any website is a mere template, and in no way serves the purpose of a platform that a user understands. Our team has created an ironclad SEO-friendly content guideline, which enables us to ease the process for our customers through our high-quality content. A user, who lands on our website easily finds the desired service- this improves our bounce rate and results in a 100% conversion. A high-quality SEO-friendly website contains quality keywords, optimized article length, and a good Page Load Speed.<h3>Meta Tags</h3>Meta Tags are snippets of the text available on the website, they don’t appear on the page itself, but are displayed when the webpage is shown on the search engine page. They provide information to the user about the website’s description. <h3>Canonical Tags</h3>A canonical tag specifies the source URL of a page to a search engine (such as Google). The idea is to declare a single page as its own source or for duplicate pages to reference their source or originating page in order to attain proper indexing. Suppose a single company owns multiple domains, all of them having the same content, Google’s crawlers may mark it as plagiarised- to avoid this we add a canonical tag in the code, letting Google’s crawlers know that all domains belong to a single website.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a><h3>Server-side Rendering</h3>Cogoport developers have successfully implemented Server-Side Rendering (SSR) on the website. SSR is a popular technique for rendering a client-side only Single Page App (SPA) on the server and sending a fully rendered page to the client. SSR helps in performing well on devices which have minimum processing power, as the server sends a fully loaded app to the device. SSR allows faster page load speed for our website, which is essential for improving user experience.

Cogoport and SEO - A Perfect Blend

How to Achieve a Perfect SEO Score for Your Website: Tips & Strategies

In order to expand business presence across the world, a company needs to have a global product reach. It is desirable for companies to have a streamlined delivery mechanism in place, to bridge the gap between the consumers and them. <h3>Going Global</h3>Before planning the entire course of the shipment, you need to make sure that the goods you want to ship are not prohibited or restricted items in the destination country. You can do that by visiting official customs websites of the countries. <a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>Some countries are easier to ship to than others. For example, India requires more personal documentation than most countries. It is important to be aware of the current geopolitical issues, this allows building trust with overseas partners. <h3>Do I Need Shipping Insurance? </h3>If a person wishes to ship a high-value item, they’re bound to assess the likelihood that the item may get lost, damaged or stolen. Therefore, it is important to get shipping insurance to have peace of mind when shipping goods internationally. There are numerous websites where one can generate shipping insurance. <h3>Start Shipping</h3>For a streamlined shipping experience, it is recommended if the entire process is automated. This will help in avoiding all intricacies involved in doing the work manually. Automation is taking over every industry, including shipping and logistics. Innovative companies like Cogoport have offered the consumers a platform to search for freight rates instantly and get transparency in tracking. Business owners should have a shipping tool which allows them to import all the individual’s orders from different sales channel onto one platform, automatically send tracking numbers, generate Bill of Lading, make sure the process is smooth, and schedule the pickups online.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" alt="" width="300px"><h3>Duties and Taxes</h3>A shipper is bound to pay various duties and taxes when shipping internationally. Following are the two ways to pay for duties-<ul><li>Delivery Duty Unpaid (DDU) - Duty is not included in the shipment cost and must be paid when the consignment arrives at the destination port.</li><li>Delivery Duty Paid (DDP) - Duty is included in the shipping cost and has already been paid before the consignment arrives at the destination port. </li></ul>Shipping cargo internationally demands a high level of documentation and declaration. However, there are numerous websites which make the task of documentation easier by doing 95% of the work.

Planning Your Next International Shipment

Planning International Shipping: Key Steps for Successful Global Trade

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

US-China Trade War: Impact on Global Trade, Tariffs & Economic Relations

Businesses are becoming increasingly global and complex in nature. In such an environment, a supply chain that is complicated, lacks transparency, and operates in silos is no longer viable. Today, to win and have a competitive edge, organizations need to build an integrated supply chain.<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><h3>How Will Supply Chain Integration Benefit Organizations?</h3>An integrated supply chain will help streamline the business process and provide the following benefits:<ol><li>Improves collaboration: Integration will connect various stages of the supply chain into a single process. This, in turn, will create an environment that will help improve collaboration among the stakeholders of the different processes in the supply chain. </li><li>Reduces cost: Complicated and disconnected supply chains increase the operating costs without adding any actual value to the product quality. Integrating various processes and systems in the supply chain enables organizations to identify and remove unnecessary costs without affecting product or service quality. </li><li>Adds agility: An integrated supply chain is agile. It is more flexible and responsive to unscheduled demands made by the business or changes in the industry. Collaboration among all the functions of the supply chain and timely sharing of data gathered at each touch point is critical to achieve agility. </li><li>Simplifies the process: Large supply chains are known for their cumbersome and varied processes. This is not only time consuming, but also creates confusion among the different departments. Integration brings the entire supply chain on a single platform, thus simplifying the systems and processes.&nbsp; </li><li>Increases transparency:&nbsp;Integration allows for easy access and verification of information and data. It also lets relevant authorities within the system keep track of how the information is being used and monitor critical functions of the supply chain. </li><li>Saves time:&nbsp;Integration saves time spent on the follow up one process-stakeholder needs to do with another process-stakeholder to get the required information on time. This saved time can be used productively by employees in other important work. </li></ol>In addition to the above benefits, in the long run, integrating the supply chain can enable organizations to analyse and understand future needs of the business and start building capacity and business strategy over time.<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>Is this Enough?</h3>No. To get exponential benefits of integration, in addition to connecting an organization’s supply chain, it is also necessary to bring external service providers into the system - i.e. integrate the entire ecosystem in which your business operates.The following sample case study will highlight why it has become an urgent need to integrate not only your internal but also external supply chain system.ABC Auto Parts Pvt. Ltd., manufactures automobile spare parts. They have state of the art manufacturing facilities. Over time, the company has also managed to integrate and create a uniform process across its sales, administration, operations and manufacturing facilities. Within the company, information and processes flow seamlessly and without any hindrances.ABC sells to the local market and also exports its products around the globe. Since the scope of their business is large, they have a separate department for handling the transportation and export formalities.Despite the dedicated manpower, more often than not, there is some glitch or another that creates a delay in their shipments. Issues like - the contracted trucking company’s trucks not arriving on time, spending a lot of time searching for best ocean freight rates in the market, negotiating with forwarders or shipping lines, collecting documents from various vendors, delay in getting customs clearance, extensive follow up with various vendors, conducting a reference check every time a new vendor is added, monitoring the shipments till it reaches the final destination, etc., are common and take up a lot of time of the employees without adding any real value to the organization. Resolving these problems sometimes needs intervention from senior management, thus creating a bottleneck and adding to the delay.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>ABC Auto Parts is a classic case of a company that is suffering not due to its own inefficiency but that of the ecosystem that it operates in.&nbsp;While as a single organization, the different service providers in the ecosystem may not be inefficient but the diverse platforms used, varied processes, business language, timelines, and priorities make one organization seem inefficient to another.It is in such situations that we realise how important and urgent it is to bring all the participants in the supply chain - organizations and vendors who provide services like transport, customs clearance, packaging, insurance, and tracking of shipments till delivery to destination - on a single platform.<h3>Can it Be Done? </h3>Yes, it can and it is being done by using technology to create a digital supply chain.New and advanced technology has made it possible to build a single platform where all the players in the ecosystem can connect, collaborate, and complete the supply chain cycle. The supply chain ecosystem (manufacturers, marketers, logistics, and other service providers) too has started to realise the benefits of collaboration, communication and real-time exchange of data and information among themselves.<pdir="ltr" style="line-height: 1.656; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">This realisation has added anurgency to create an integrated and digital supply chain. It is no longer a requirement for the future, it is a demand that needs to be met now</pdir="ltr"><pdir="ltr" style="line-height: 1.656; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><a href="https://www.cogoport.com/signup">Register</a> on Cogoport now to experience how a digital freight management platform works and to integrate your organization’s shipping process. </pdir="ltr">

Need of the Hour - An Integrated Supply Chain

Integrated Supply Chain: Benefits, Strategies & Implementation

There are certain things that should be considered when you decide to export agricultural products to Europe. The import of agricultural products to Europe is quite limited due to the temperature and climatic conditions there, which is not favourable to agricultural products. Few of the major imported agriculture products to Europe are Cocoa, tea, spices, soya-bean products, cotton, off-season fruits, vegetables, and coffee. Thus, the European Union gives huge credit to the farming sectors that are involved in agricultural trade with Europe from all over the world.
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Considering the financial strength and deficit of arable land in Europe, agricultural trade with Europe is a golden opportunity for many developing countries. In the data published by Eurostat in 2017, the total value of agriculture products imports and exports between the world and Europe was 275 billion euros. 

However, there are few things to speculate while exporting agricultural products to Europe, mentioned below.

1. Common Agricultural Products Exported to Europe:&nbsp; European agricultural production includes products such as vegetables, grains, fruits, and sugar. A major part of the agricultural products is exported to Europe, which includes dairy products, poultry, fruit, vegetables, and olive. In the data published by Eurostat in 2017, the total value of agriculture products imports and exports between the world and Europe was 275 billion euros.

2. Quality:

The first thing that you should keep in mind is the quality of agriculture products due to the consciousness of the people regarding their healthy eating habits. In 2017, the Vegetables were a major part of agriculture imports to Europe, which was around 48 percent. Foodstuffs and animal agricultural imports were 32 percent and 20 percent respectively. EU food law requires that the competent authority of the exporting country offers guarantees as to the compliance or equivalence with EU requirements for the food of animal origin. The authorities are present to make sure that the third countries should maintain the operational criteria put forward by the European Union, especially Regulation number 882/2004.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a>3. Importance of Logo:&nbsp; You should keep in mind that the organic agricultural products you want to export to Europe should be produced along with a certified logo. It can be made clear from the fact that people of Europe buy 95 percent of the organic products that have an organic farming logo.

4. Demand in different regions&nbsp;:The places where the consumption of vegetables and agricultural products is more should be targeted, when exporting to Europe. According to FAO data, the vegetable supply is quite high in Southern Europe as compared to Northern Europe. In Northern Europe, the average supply is 195 g per person per day, which is 71 kg per person per year. However, in southern Europe, there is an average supply of 756 g per person per day. The place is to be researched before beginning with the exporting process as the WHO estimates that in more than half of the countries of the European Region, the consumption of fruit and vegetables is lower than 400 grams per day, and in one-third of the countries of the European region, the consumption is less than 300 grams per day.

5. Rules and Regulations:&nbsp;The European health certification and Accreditation Requirements are critical to the success of your export business. Regulation (EC) 178/2002 (General Food Law) is the regulation which sets out the general principles and requirements of European Union food law Health certifications are necessary for the import of agriculture products. Additionally, the quality certificates are also as necessary for marketing the products under a specific label. The establishment of EU rules and standards in the food and the agriculture sector has been happening in Europe for a long period of time. However, in January 2002, changed the scenario and the publication of a general food law took place in which general principles of EU food and agriculture law were established.
6. Importance of Research:

Before exporting, thorough research is necessary about the customer preferences in regards to agriculture products. The most exported items include foodstuff, beverages, and spirits together estimating around 39 % of the products, which has a value of around 31 billion euros. Products registered under chapter 23 estimate around 23 % of foodstuff imports, which has a value of 10 billion euros.
7. Competition in the Market:&nbsp;The competitiveness of the target market is a vital factor to be considered when you think about exporting your product. More than 500 million consumers and 21 million small and medium-sized enterprises (SMEs) can provide opportunities to grow and establish you in the competitive market. 16% of the world’s imports and exports are shared by the members of the European Union.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;">8. Study of Models related to the export of agriculture products:

The model proposed by the International Plant Protection Convention should be studied thoroughly and followed while exporting the agricultural products to Europe. European Union has only one model certificate for exports and one model certificate for re-exports of plant products in accordance with international regulations laid out by the IPPC.
9. Packaging Policies:

The packaging and production laws proposed by the Agricultural Marketing Service (AMS) should also be kept into consideration, otherwise, the EU health certificate will not be granted to the product, and it might get banned from the European market. The method to obtain an EU Health Certificate requires the manufacturers to provide their final production and packing facility registered on the FDA Dairy Plant Reference List of EU approved facilities. There are certain certificates such as dairy EU storage, EU raw milk product health, and dairy EU transit.10. MRLs:

The European Union has established maximum residue levels (MRLs) in order to prevent the risk possessed by pesticides on food products. In case any product contains more pesticides than the mentioned number, then that product will be banned from the European market. It should be kept in mind that European buyers are strict in this aspect and they need information about the pesticides so that health standards can be maintained. 33 to 70 per cent of the supermarket chains ask for legal MRLs from the exporters.

<h3>What Does This Mean?
</h3>
While Exporting Agricultural Products to Europe, it becomes vital to look at the different rules and regulations set up by the European Union regarding agricultural products consumed in Europe. The market analysis and market trends of Europe should also be kept in mind along with the demand and taste of the European people.

Exporting Agri Products to Europe: 10 Key Points

10 Essential Tips for Exporting Agricultural Products to Europe: Quality, Regulations & Packaging

Chinese New Year (CNY) is a Chinese festival that designates the beginning of New Year for the Chinese people as per the traditional Chinese calendar. It is so renowned because it marks the beginning of a lunar new year. The trading between China and the rest of the world is momentously affected during the time of New Year due to celebrations in china.
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## 1. Impact on Transportation

Road Transportation to and from Ports will be motionless during the time of the Chinese new year, which can have a direct impact on the shipping activities of products and goods. You may not be able to get your shipment before one or two weeks of the Chinese new year. It is a strong possibility that the shipment will not move forward and will stay where it is, for at least two weeks after the Chinese New Year. In the recent past, it has been witnessed that some of the road transport shipping services are kept open during the New Years’ time. However, even those are ineffective in making the shipments reach their destination within the deadline. All of this accumulates and affect the freight rate such that it might double.

## 2. Decrease in the Efficiency of Chinese Freight Forwarders companies

Chinese Freight Forwarders companies will not operate at their usual pace over the New Year period. All the ports of china will be busy and congested due to the arrival of the previous orders in the weeks before and after the Chinese New Year. Not only the road transport system but also the airports will be flooded up with large demands of shipping of cargo. The last-minute orders, mainly those orders which will be placed in January, might not be shipped on time. Even if the orders will be shipped, the issue of quality will be associated with them.
## 3. Impact on Customer Authorities

Customs Clearance at Chinese Ports and Airports will give rise to major issues in the shipping of the products. The customs authorities have a role in the import and export of products. Usually, the customs authorities go for shorter breakers of two to three days during the Chinese New Year. However, even that break can increase the processing time drastically.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>
## 4. Impact on Production

It is not at all astonishing that the production is halted one or two weeks before the Chinese New Years' Eve as most workers leave for holidays to visit their families. If the workers will not be available then the mass production of goods in factories will not take place. The businesses can be obstructed greatly as even the sample orders will not be produced during the Chinese New Year. The shipping of products will also get affected because the situation will not be in the control of even the supplier. In addition to this, the subcontractors will also be at a standstill around a week before the Chinese New Year.

## 5. Impact of long-lasting holidays

The Chinese New Year will cause further delays as the production will also be paused for a minimum of two weeks after it will be over. Astonishingly, the official holidays last only for one week after the New Year, but since this is the only holiday the workers get to visit their loved ones, they usually extend their holidays by a week or two. The main reason behind the slow supply is the shortage of production due to the absence of workers. Due to the deficiency of workers, sometimes the work is even halted for three weeks after the New Year.

## 6. Number of Workers Reduce after the New year Holidays

Getting operations back to normal will take up to a month or more because certain workers do not even return to their prior organisations and employers, and tend to quit or change jobs without giving any official notice, or making any prior announcement. The shortage of workers affects the business in a negative way. Due to the less number of workers, the shipping will be disrupted in the Chinese market. It becomes really hectic for employers and organisations to find skilled and trained workers. As a consequence, they look for new workers and they have to invest cost and time in making the employees comprehend their job. Due to change of workers, the risk of quality issues will be at its threshold. This could lead to a shortage in the number of orders and indirectly affect the shipping process also. The Chinese New Year officially lasts for one week but there will be a large number of factories and businesses that will be shut down for about 10 days before the New Year to give enough time for their employees to travel.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px">

## 7. Difficulty in Placing of New Orders

The placing of new orders will also be difficult, sometimes the orders cannot be placed as most of the factories, and businesses will be completely shut down a week before the New Year. As many of the suppliers and businesses will stop accepting orders, it will become intolerable to place the order at the desired time. Furthermore, the delivery and shipping process will take even more time to reach the destination. Some of the suppliers will accept the orders even during the New Year time; however, they can confront a shortage of products and services. Around 80 million workers travelled by road, train, and plane back to their hometowns during the Chinese new year in 2015. In the late 1970s, economic reforms were responsible for the growth seen in Shenzhen, Xiamen, and Zhuhai.

## 8. Lack of Backup Suppliers

Chinese New Year will also make it problematic for the people to find backup suppliers as almost all the suppliers present in China will not be active during that period. If you operate in some other country and you need goods from the supplier in China in order to manufacture your products, then you might have to slow down or stop your production activities. Chinese New Year will also impact the quality of the products and goods. This is because the quality check management will also be going to their hometowns during that period. In the absenteeism of the quality check manager, the risk of delayed shipment due to bad quality or imperfect goods will upsurge.

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