If you’re looking for reliable, insightful, and digestible economic, political, and business intelligence, you should check out Armada Executive Intelligence. Their Black Owl Report executive briefing system is a must-have for any business leader wanting to stay current on global news and events that could impact your supply chain. Shown below is an excerpt from the Wednesday 19, April 2017 Black Owl Report briefing with news and comments regarding the latest IMF (International Monetary Fund) World Outlook Update. The IMF projects the world economy to grow at a pace of 3.5 percent in 2017, up from 3.1 percent last year, and 3.6 percent in 2018. Acceleration will be broad based across advanced, emerging, and low-income economies, building on gains it has seen in both manufacturing and trade.
World Growth to Accelerate According to IMF. The IMF has released its latest World Outlook update, and it bumped up global growth from 3.4% to 3.5%. It left most of its 2018 outlook unchanged – primarily because of Brexit and a few unknowns that could affect global growth. To pull a few highlights out of the report, here are the items that caught our eye:
From a geopolitical perspective, it would seem that Russia has less to worry about (economically speaking). The IMF sees the country growing finally at 1.4% in 2017 and 2018. That changes the negotiating perspective between Russia and the rest of the world. If it can grow despite economic sanctions imposed on it, then it has flexibility and the ability to maneuver. The global community could always ratchet up global sanctions, but it would take a lot more to get the world to move. Otherwise, unilateral action is likely to have less impact in the future (and therefore becomes a lesser deterrent).
Emerging markets in general will see growth of 4.5% this year, compared to 4.1% last year.
China outlook has improved slightly, but the IMF still believes that it will see growth behind its 2016 performance.
India will see growth accelerate further, growing at 7.2% in 2016 vs. 6.8% in 2016. India ranks 7th among the largest economies in the world, but had just $2.2 trillion in output in 2016 (compared to China’s $11 trillion or the US’ $18 trillion).
Growth in most of Europe was also lifted by .1 percentage point in 2017, but remained unchanged in 2018. The uncertainty of Brexit (as mentioned) is the greatest factor limiting the IMF from hiking growth expectations in 2018.
Closer to home, Canada growth was left unchanged at 1.9% for 2017, which is still improved from the 1.4% growth rate experienced in 2016. Mexican growth was also left unchanged at 1.7%, down from the 2.3% posted last year. Uncertainty over NAFTA negotiations, weaker oil prices, and an unexpected sluggishness in global automotive demand has weakened the outlook.
If you’re interested in checking out the Armada executive briefing reports for yourself, they’re currently offering a 30-day risk-free trial. The Black Owl Report is published twice weekly, with other valuable reports periodically interspersed. Click the image below for more details.
Need help managing your global supply chain? Logistics Plus has that part covered. Contact us for more information.
The folks at Inbound Logistics magazine published their 13th annual Global Logistics Guide in the March 2017 issue. You can also read the full report online. As part of the report, Inbound Logistics ranks major foreign countries according to the following criteria:
Transportation infrastructure (T)
IT competency (I);
Business culture (B); and
Intangibles (X).
For your benefit, we have summarized the Inbound Logistics rankings below (10 is the highest score and 3 is the lowest):
Region
Country
Overall
T
I
B
X
Europe
Netherlands
10
4
3
3
0
Europe
Germany
9
4
3
2
0
ME/Africa
UAE
9
4
2
2
1
SE Asia/India
Singapore
9
4
3
2
0
Europe
Switzerland
8
3
3
2
0
Asia
Hong Kong
8
3
3
2
0
Asia
Japan
8
3
3
2
0
Americas
Canada
7
2
3
3
-1
Americas
Panama
7
3
1
2
1
Europe
France
7
3
2
2
0
Europe
Belgium
7
3
2
2
0
SE Asia/India
Malaysia
7
3
2
2
0
SE Asia/India
India
7
2
1
2
2
SE Asia/India
Taiwan
7
3
3
2
-1
Asia
South Korea
7
3
3
2
-1
Americas
Chile
6
2
2
2
0
Europe
Poland
6
2
1
2
1
Asia
China
6
3
1
2
0
Americas
Colombia
5
2
1
2
0
Americas
Mexico
4
2
1
2
-1
Europe
Russia
4
2
1
1
0
SE Asia/India
Indonesia
4
2
1
1
0
SE Asia/India
Thailand
4
2
1
1
0
Asia
Vietnam
4
2
1
1
0
Americas
Brazil
3
2
1
1
-1
Europe
Turkey
3
2
1
1
-1
ME/Africa
South Africa
3
2
1
1
-1
The good news is that if you are exporting to, or importing from, any of these countries, Logistics Plus has local offices or reliable agents in almost every one of these countries. So we can help you with affordable import/export transportation rates and customs clearance fees; we can help you with warehousing and distribution solutions if they’re needed; and we can help you address virtually any global trade compliance issue that might apply. If you do business in any of these countries, we invite you to contact us to learn more.
Each year, U.S. companies export well over 2 trillion dollars of goods and services. If you want your business to get in on the action, it’s important to figure out the best way to expand to new markets. The U.S. Commercial Service has developed some exporting resources and a comprehensive video collection to help small and medium businesses become better equipped to enter the world of exporting. The first video in the series is shown below. This same video, and subsequent videos, can be found online at www.export.gov/How-to-Export.
With over 20 years of exporting expertise as a full-service international forwarding and logistics company, Logistics Plus provides exporters with a variety of global trade solutions, including:
International Air Exporting
International Ocean Exporting
Amazon Global Selling
Project Cargo Exporting
Customs Brokerage
Global Trade Compliance Consulting
Global Sourcing Support
Global Financing Solutions
Cargo Insurance
Linguistic Solutions
Additionally, we have a variety of tips and resources available in the News & Notes section of our website. Simply click the image below to view a collection of all our export-related articles.
Of course, to really experience our “Passion for Excellence,” feel free to contact us directly using the button below, or by emailing quotes@logisticsplus.com. We’d love to help you with any or all of your exporting needs!
Take the time to confirm your HTS codes before importing. U.S. Customs’ system of classification can be very complicated, and the HTS codes advised by suppliers are not always accurate or match the U.S. classification system 100%. A full cost for imported goods can only be known with the correct HTS codes.
Keep potential exams in mind when thinking about the transit time, for ocean shipments particularly. An exam can take a week or more, and could be caused by any importer on an LCL consolidation, or a container could be simply selected at random. If goods are time-sensitive, air shipping part or all of the order could save money in the long run.
Be sure your broker or import forwarder is made aware of all ocean imports well in advance of departure from overseas. An Importer Security Filing (ISF) must be filed timely! Liquidated damages for ISF start at $5,000 for failure to file an ISF, $5,000 for late ISF, $5,000 for inaccurate ISF, $5,000 for an incomplete ISF, and $5,000 for failure to withdraw an ISF. The maximum liquidated damages per ISF filing is $10,000.
Exporting Tips:
Know your Incoterms®.Incoterms can be a frustrating and confusing to understand; however many exporters do not fully understand the terms to which they are agreeing and, therefore, end up paying more or running into unexpected fees. As an exporter, you need to understand the costs, responsibilities, rights, and obligations that accompany the use of a specific Incoterm. Every quotation or sales order must include a term of sale. If you fail to clearly identify the specific Incoterm to your customer, it can lead to an overestimation or underestimation of the costs associated with the goods you are selling (and a lost sale).
Research the area to which you are selling. Selling to a new area requires you to keep an open mind. Knowing the market you will be putting your product into can alleviate a lot of the stress with exporting. What currency do they use? What is the local tax or VAT (value-added tax) system? What is the business culture, and/or local culture? When are their holidays or weekends observed?
Do your paperwork. Know that each country has its own set of importing regulations that require different licenses and customs paperwork. Some countries will require certain stamping, legalizations, or original documents, while others simply accept copies. These vary from country to country, region to region, and with specific commodities.
Most Important Tip:
Work with an experienced and reputable freight forwarder. An international freight forwarder acts as an agent on your behalf and assists in moving your shipment from its U.S. origin to its foreign destination. Capable freight forwarders are familiar with the import rules and regulations of foreign countries, U.S. import and export regulations, methods of shipping, and required documentation. They can assist you in preparing pricing quotations by providing freight costs, port charges, documentation fees, insurance costs, and handling fees. They can also recommend packaging methods and transportation modes that will best protect your products during transport and ensure they arrive when and where you need them.
Ready to take us up on tip #7? If yes, then click the button below to get started.
Here’s a quick ‘play-by-play’ example of how the Logistics Plus (LP) global project cargo team springs into action when presented with a logistics challenge from one of our customers. Now that’s global project logistics teamwork!
26.05
The LP Belgium office received a call from our customer to urgently send lifting lugs to Turkey (which then led to a request to ship 18 windmill tower sections from Turkey to the United Kingdom). Bahadir Erdil and Basar Kandil (from LP Turkey) happened to be in Antwerp, so it was set in motion fast.
Basar is back in Turkey and initiates custom clearance.
01.06
Basar arranges delivery to wind tower manufacturer.
06.06
Frederik Geirnaert gets the RFQ for the shipment of 18 windmill tower sections (4100 cbm).
07.06
Bahadir spends the next few days negotiating with various carriers to find the first available ship at the best rates.
09.06
We get the order!
10.06
Mert Altinsaray arranges trucking of first pieces from supplier. He also attends load-out in-person and makes some repairs/fixes.
23.06
Mert arranges trucking for final pieces from supplier. Meanwhile Bahadir is at the Izmir port to supervise loading.
24.06
Mert and Bahadir finalize loading. Doruk Yagci finalizes the documents.
05.06
Ship arrives in Southampton, England. Frederik attends the discharging. Shipment is successfully delivered to its final destination! Had the shipment not arrived on time, the customer would have missed an important deadline – it needed to ship one set of completed towers from Southampton by July 6th at 9:00 am or they would have missed a police escort; and the next possibility for that police escort was 6 weeks later!
If you have a project logistics challenge of your own, let us know. The LP team stands ready to help you too!
World Growth to Accelerate According to IMF. The IMF has released its latest World Outlook update, and it bumped up global growth from 3.4% to 3.5%. It left most of its 2018 outlook unchanged – primarily because of Brexit and a few unknowns that could affect global growth. To pull a few highlights out of the report, here are the items that caught our eye:
