Something interesting happened this afternoon. At 11:30am I got an e-mail from the school my kids go to saying: Good morning. Earlier this morning there was a power outage and now we are closing the school. Please pick up your children at 12:00 noon. 30 minutes notice!Sometimes I wish there was a Cogoschool platform. By that I mean a platform that manages school logistics, much like Cogoport manages freight. One that informs you timely of changes, and potentially suggests alternative solutions for issues. One that informs other parties involved and gives you the means to deal with the changes.<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;" alt="whatsapp chat"></a>Instead of solving logistics challenges for customers I’m apparently (or a parent-ly) solving logistics issues for a school...Anyway. My highlights from freight and other news this week:<h3>Oil Price</h3>Surcharges have been in almost every Ocean Freight Update I have done these past weeks. As fuel is often an important component of the surcharges:“As the volatility in oil prices continue, there have been different opinions on its future with some predicting a three digit rate in a few years while a few hopeful of a downturn. Banking major Barclays has a rather interesting take on the situation, reasoning out that the prices would fall to around $70 per barrel next year rather climb higher.”→ <a href="https://www.freightwaves.com/news/todays-pickup-panama-city-braces-for-hurricane-michael-6mreh" target="_blank">Barclays predicts oil price to reach $70 next year</a><h3>Pirates of the Caribbean, no, Asia</h3>A total of 64 incidents of piracy and armed robbery against ships were reported in Asia during January-September 2018, a 3 percent increase compared to the same period for 2017, ReCAAP ISC said in its latest report.→ <a href="https://www.marinelink.com/news/piracy-rises-asia-442554" target="_blank">Piracy Rises 3% in Asia</a><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;" alt="Cogoport sign up "></a><h3>The Urge to Merge</h3>There’s always talk about alliances, mergers, and takeovers. Between shipping companies, but also between logistics providers. Now there may be another combination of the two:“CEVA had rebuffed a full takeover bid from DSV, while at the same time giving CMA CGM the option to increase its stake to one-third of its shares.”“An accompanying statement from CMA CGM suggested it may well take up this option, and a fully fledged takeover of CEVA could also happen”“CEVA could be dismantled by CMA CGM, or its own management team, in the same way that Damco is by AP Møller-Maersk Group; if so, then, the freight forwarding assets – mainly contracts and staff – could be spun-off and presented to possible suitors.”→ Market Insight: CEVA and CMA CGM – vertical consolidation the next step?<h3>More on Capacity and Carrier Rates</h3>“The decision by Asia-North Europe carriers to blank or suspend 11 head-haul voyages this month appears to have halted the slide in spot rates on the route, the SCFI component virtually unchanged at $731 per TEU.However, if the 2M Alliance reactivates its AE2/Swan loop earlier than planned – on 5 December as suggested by Alphaliner – then spot rates could fall away quickly.”→ Early AE2/Swan return would add to the pressure on Asia-Europe carriers“If there’s a serious drop of Chinese exports into the US, it will push China to find additional markets. There will be winners and losers but a re-balancing within Asia could be positive overall as more consumer markets develop.”“Any big uptick in intra-Asia container volumes is likely to exacerbate port congestion across the region, however.”→ China-US trade war could be the founder of a feast for intra-Asia box traffic<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>Freight Tech</h3>“MSC has announced it will fit some 50,000 of its dry containers with smart technology over the next few months.”“The carrier said the technology would be provided by Traxens, the French container tracking start-up that has received investment from CMA CGM and more latterly MSC. Both carriers have a seat on the Traxens board.”“The Traxens system has three key elements: first, a tracking and environment-monitoring device permanently fitted to the box, which records data such as GPS position, temperature, impacts, movement, and vibration.”→ MSC opts for Traxens technology to create 50,000 'smart' containers“Rolls-Royce is partnering with Intel to conquer the immense amount of data required to make autonomous container ships a reality”“The data required to facilitate autonomous ships is greater in size and complexity than that necessary for autonomous road vehicles because of the increased variability of the environment.”→ <a href="https://www.supplychaindive.com/news/rolls-royce-intel-autonomous-ships-sensors/539683/" target="_blank">Rolls-Royce teams up with Intel on autonomous ships</a>“Energy innovation in shipping is not confined to main propulsion systems. Norsepower has installed its Flettner Rotor Sail Solution on three ships of different types – one Ro-Ro (roll-on, roll-off), one cruise liner and one tanker – and is documenting the resultant fuel savings.”→ <a href="https://about.bnef.com/blog/planes-trains-automobiles-electric-remake/" target="_blank">Planes, Trains and Automobiles – the Electric Remake</a><h3>Saving the Best for Last</h3>Great news last week: we were recognized as one of the 100 most innovative and disruptive companies in freight! A proud moment for all of us.At the end of last week, our founder Purnendu Shekhar wrote a post about in which he looked back, but also looked forward.“I love seeing their passion every day. Everybody is working closely together to make shipping goods across the globe easier, more efficient, and more transparent.”→ <a href="https://www.cogoport.com/en-IN/blogs/cogoport-recognized-freight-tech-100" target="_blank">Cogoport Recognized in the Freight.Tech 100</a>We were also mentioned in the announcement by Freightwaves:“From on-demand trucking to blockchain, loadboards and freight matching, the list of companies bringing innovative technologies to the freight industry is growing by the day, which makes the 100 that have made the cut to be honored by the FreightWaves Research Institute as part of its inaugural Freight.Tech 100 all the more special.Cogoport is an example. The company believes that booking ocean freight should be as easy as booking a hotel room. Its platform provides instant quotes, helps choose the right ocean carrier, allows for the uploading of documents and manages all shipments”→ <a href="https://www.freightwaves.com/news/trucking/innovation-key-to-making-the-freight-tech-100" target="_blank">From upstarts to traditional powers, the Freight.Tech 100 represents all that is innovative about freight</a>Photo by Tim Easley on Unsplash

Oil Prices, Merger, Rates, and Freight Tech

Freight Industry Top 100: Prices, Mergers, and Rate Trends

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

Sustainability, Carrier Rates, and Seagulls

This Week in Ocean Freight (28/09/18): Sustainability, Carrier Rates & Industry Trends

March was a busy month
at work. Financial year-ends usually are. Although I do try to keep abreast of
all important news and critical events in the industry, sometimes the schedule
doesn’t permit it. 



The news about the
fire on Maersk Honam is one such
missed incident. I came to know about the case whilst going through the industry
updates of the past month.<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;" alt="whatsapp chat"></a>

As I understand from the media reports, it took almost 5 days to bring the fire under control. The
firefighting efforts are still in progress. This explosion resulted in the
death of 5 crew members, destroyed cargo worth millions, and caused heavy
damage to a new (2017 built) vessel. For the shippers who had cargo on board,
the nightmare has just begun. It may take months for them to get their cargo
back (if it has been salvaged) that too after paying a huge sum of money as the
Danish Liner has declared general average.


Why do we need to talk about this
incident?



Even though fire on
ships is not a frequent occurrence, it is a serious one. Thus, when such
incidents occur, we must not brush them away as accidents. They signal an anomaly
in the system or processes that are being followed.



Instead of stopping at mere reportage, these cases should be rigorously investigated for cause. And, we must collectively –
shipping lines, regulatory authorities, NVOCCs, and traders – work to
find solutions to mitigate such incidents. 



To spark off the discussion, I am sharing a
few questions that occurred to me as I read the media reports on the Maersk Honam Fire mishap.

Considering that the vessel was new, it
raises a question regarding the construction plan of the ship/quality of the
construction. One is compelled to ask if the ship’s construction plan was approved
by the American Bureau of Shipping? Or was safety compromised in anyway to
optimize design and reduce costs?<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">



<ul><li>How did the ship’s document of
compliance allow such dangerous cargo to be loaded near the crew’s accommodation?
Did the stowage plan of the vessel comply with the document of compliance? Were
the rules and regulations mentioned in the SOLAS Convention followed? </li><li>Was the cargo correctly approved in
line with the International Maritime Dangerous Goods (IMDG) Code by the
shipping line that accepted it? Here, along with Maersk, the responsibility for the mishap&nbsp; lies
equally with its 2M Alliance Partner - MSC and slot sharing partner - HMM. Since,
the cargo manifest is not made available to the vessel operator, it is
important to know if the
Line that accepted the cargo carried out due diligence?</li><li>Finally, did the shipper correctly
declare the nature of the cargo? One of the major reasons for such incidents is
misleading/incorrect information provided by the shipper or his staff due to
unawareness of the rules or inexperience of dealing with such hazardous cargo. As
an industry, we must take measures to educate shippers of the rules and
regulations, processes to be followed when dealing with hazardous cargo.</li></ul>

In addition to finding answers
to the above questions, we also need to understand where we are lacking in our
efforts to ensure ship safety: 

<ul><li>Are we providing the latest equipment
on the ships to deal with such mishaps?&nbsp; </li><li>Is our crew equipped with the knowledge
and training to manage any operational issues or accidents or fires?&nbsp;Training of
the staff on board must be of top priority because if even one member of the
crew is slightly unsure of what to do in such a situation, we are putting the
life of 25-30 other people at risk.</li></ul>

While investigations will
reveal the cause of the blast on Maersk
Honam, till the time the report is released, we must engage in healthy
debate on how to curb such incidents. As an industry, we must also work on educating
ourselves, our teams, and our customers to make due diligence and safety first an
integral part of our work. We owe it to the 5 sailors who lost their lives in
the incident. Image Source:&nbsp;@IndiaCoastGuard

Maersk Honam Fire: Ignorance as Cause?

Maersk Honam Fire: Lessons Learned for Maritime Safety and Risk Management

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

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

3 Trade Finance Risks Exporters Should Beware of

Trade Finance Risks Exporters Should Beware: Common Pitfalls & How to Avoid Them

The way to economy’s heart is through the stomachs of consumers. Opportunities in agricultural trade exist for both the EU and India.Clove, cinnamon, and pepper once propelled global trade. These were as valuable as gold, so trade in spices was brisk, and it had great cultural and economic significance. New maritime trade routes and partnerships were forged and regional eating habits evolved. European demand was the animating force for commodities trading, and, as the world’s second-largest economy, the European Union (EU) still is.<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>India’s role has been historically important. It was the largest producer of spices, and the trade routes that emerged from the 14th to 17th centuries still exist. It is still a developing economy, but one of the world’s fastest-growing and as it searches for international trade partnerships to sustain its rapid GDP growth, it sees agriproducts as a way to achieve its ambitions.Modern day India-EU food trade presents a huge opportunity for both parties, albeit that the EU market is fiercely competitive and highly regulated – particularly on food products – and India’s is complicated and less rule-bound.<h3>All Eyes on Asia</h3>Globalisation has brought the world closer, and even our palates have benefitted. Foods that were once treasured in a specific region are now being shared with the world. Avocados, Himalayan pink salt, quinoa, cashews and kale are current examples. A wave of Instagram food enthusiasts has given the taste for new foods and added stimulus as their influence spreads across continents.<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>When it comes to exotic foods demand, Asia is a huge potential market. It is home to more than half the world’s population. Rising disposable incomes and growing food demand have made it a lucrative market for the EU’s food producers. India is at the forefront.The question then is to find the right opportunities.India is still largely an agricultural country. Almost half of its labour force is involved in farming, while the corresponding number in the EU is relatively tiny. The amount of arable land in Europe is declining. This will inflate its demand for food imports – an excellent opportunity for Indian exports, which include rice, jute, lentils, onions, and potatoes. Meanwhile, the EU produces an abundance of wine, barley, grapes and olive oil. Globally, demand for olive oil, a European staple, is set to increase, as awareness of its health benefits grows. While both the production and consumption of wine are expected to stabilise within the EU, appetite for it in developing countries, including India, continues to rise.Other factors contribute. Thanks to the organic food movement, India predicts growing global demand for its spices and lentils. Environmental consciousness will raise awareness of jute as an alternative fabric. The crown jewel of Indian food grains - basmati rice will be sought after as more people switch to gluten-free diets.Trade-in agriproducts between India and the EU are like pieces of a jigsaw puzzle - ready to take shape.<h3>Regional Trade Set to Boom</h3>Exporters from India who have traditionally looked at western markets realise export business opportunities with their regional counterparts. Given the proximity and blooming economies, the countries within South Asia could be trading among themselves at three times the current levels according to a recent report by the World Bank. It seems the EU is by no means the only game in town.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">India is already taking advantage of specific export opportunities in five markets which include – rice to Egypt, onions to Dubai, lily bulbs to Taiwan, sesame to Turkey, and turmeric to Japan. It is also assessing regional markets for organic products such as grapes, mangoes, pineapple, litchi, ginger, and okra. The country seeks to liberalise trade in farm products and amplify international commerce.India’s export volumes will grow even if regional focus may shift. It’s also clear that there will be a definite increase in demand for imported European goods. Indian consumers will have agriproducts such as fine wine, olive oil, and other native European produce on their shopping lists. These commodities, once considered luxuries for most Indians, are becoming more prevalent.Opportunities exist for both the EU, the largest trade bloc in the world, and India, the nation that is set to be the most populous by 2024.Spice traders were paid handsomely in past centuries. Tastes may have changed the items in the shopping baskets of consumers, but for importers and exporters of food products, there is still a thriving business to be done.&nbsp;

India-EU Food Trade: A Massive Opportunity

India-EU Food Trade: Opportunities, Regulations & Market Access

India is the world’s fastest growing economy. Indian exports of both merchandise and services have witnessed an exponential growth of 13.79% in the year 2018-19. Kudos to India! As per the current report of the Federation of Indian export organisations, the contribution of export to the country’s GDP is about 18% to 19%. Although the global factors like rise in crude oil prices, strengthening of USA Dollar and US-China trade war has affected the Indian exports.<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>Because of initiatives like Make in India where the primary goal is to brand India as a global manufacturing hub. India has managed to ride the roller coaster well. Dealing mainly in capital intensive exports, India is into exports of Petroleum products, Organic and inorganic chemicals, Electronic goods, Plastic and Linoleum.Not only this but the cabinet being lenient with the agricultural export policy, the Agri exports are estimated to grow from $37 billion to $60&nbsp;billion by the end of the year 2022. India is firmly following the mantra of Sky is the limit. Along with this, the basmati rice industry is on an expedition to have its highest ever exports in FY 2019.&nbsp;The Indian government has also equipped a rupee payment mechanism, to kick in with ease for trade with Iran, our largest importer of Basmati rice.Even the Indian pharmaceutical industry has played a crucial role in the country’s exports. It has managed to raise its exports by $11 billion in the FY 2018-19. The USA is the leading trade partner in pharmaceuticals accounting for about 1/3rd of India’s exports.India is centring on bilateral trade, with its prime focus simply on being together in an uncertain world. India has managed to sign 80 plus bilateral trade agreements.<h3 class="ql-align-justify">India’s Top 5 Markets for Exports as per the World Bank Report</h3><ul><li>United States</li><li>United Arab Emirates</li><li>Hong Kong, China</li><li>China </li><li>Singapore</li></ul><h3>India’s Top 5&nbsp;Export Products as per World Bank Data</h3><ul><li>Petroleum Oils</li><li>Diamonds</li><li>Medicaments</li><li>Art of jewellery</li><li>Semi-milled and wholly milled rice</li></ul>After marking down the highest ever exports to China this fiscal year, India is now making efforts to achieve greater market penetration in its exports.Indian export growth is essential to seize the opportunity in the global markets. Additionally, there has been an exponential growth in the Logistics sector as well.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">The logistics sector, backbone of trade and commerce across the globe is likely to grow to $215 billion worth. And by adding it to the Harmonised Master list of Infrastructure India has already taken a few steps closer.

Get to Know What India Exports

Indian Export Industry: Top Products, Markets & Growth Trends

Lars Jensen, CEO at SeaIntelligence Consulting and Cogoport's Liam FitzPatrick discuss the hottest topics, from technology to Brexit, in the shipping Industry. <iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/P5HSeHJF6to?showinfo=0"></iframe>

Expert Connect Podcast with Lars Jensen - Ep. 1

The French container transportation and shipping company, CMA CGM, has announced a peak season surcharge from India to Onne, Nigeria. Below is the transcript -Dear Valued Customer,In a continued effort to provide our customers with reliable and efficient service, CMA CGM Group wishes to inform its customers of the Peak Season Surcharge update as follows:Scope of application:<ul><li>From India</li><li>To Onne, Nigeria</li><li>Applicable for all cargoes - dry, reefer, out of gauge and break bulk • As from 7th March 2019 (date of loading)</li></ul>Thank you for your ongoing support. Should you have any questions or concerns, please contact us at our customer service.PEAK SEASON SURCHARGE<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/6d2a633a21059113adfab4936fbbec77/Screenshot%202019-02-25%20at%205.30.50%20PM.png" alt="Screenshot%202019-02-25%20at%205.30.50%20PM.png">

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