Data2Logistics Neighbor Port Everglades Named Top Exporting Trade Zone

Port Everglades’ Foreign Trade Zone No. 25 in Florida was ranked as the top foreign trade zone in the U.S. for exports (measured by warehousing and distribution activity) by the Foreign-Trade Zones Board’s 73rd annual report to Congress. Port Everglades’ 66 percent annual export activity rise garnered them the glory.

Congrats – nice going neighbor! Keep on keeping our supply chains kicking!

A USPS Sustainability Step, Private Sector Freight Carrier Capacity Brace

The US Postal Service Board of Governors stated that despite achieving record growth in its package business and stabilization of other revenues, the Postal Service continues to operate with an inflexible business model that hinders its ability to be self-sufficient.

The US Office of the Inspector General suggested a step toward solution that would impact our industry: the Postal Service could generate additional revenue of $17.4 million in 2013 and 2014 by increasing government shipping contracts.

If the USPS can increase revenue by becoming a US government primary carrier, it’s a step towards sustainability of the entity relied upon daily as a commercial and consumer service. The fiscal flipside concerns private sector carriers impacted by the contracting shift. If business demand remains robust, the net result should be utilization of the additional capacity. Shippers would benefit from the increased options created by new availability in the marketplace.

Something lucid in USPS sustainability discussions is the shocking size and scope of the organization. Here’s content from their official communications; they’d be missed if their reach ceased to exist.

“A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation — 151 million residences, businesses and Post Office™ Boxes. The Postal Service™ receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com®, the Postal Service has annual revenue of more than $65 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 35th in the 2011 Fortune 500.”

Data2Logistics Launches Ecommerce Expeditions Canvassing Industry Supply Chains

Data2Logistics announces launch of ecommerce expeditions, the new daily publication covering news and views of moving ecommerce. The information’s reach includes those whose business plans are parallel with their supply chain’s success. Have a look...

Data2Logistics – Supply Chain Carriers Incentivized to India for Cost Savings; Shippers Want In?

India’s second-largest container gateway Chennai Port Authority announced a new one-year concessional program for vessel-related charges levied on mainline calls. Port officials said that this revision, replacing concessional rates announced in January 2010, would remain active through Dec. 31, 2013. “As the previous was advantageous only to a few mainline container vessel operators, the new concessions has been formulated taking into consideration the number of voyages, volume and gross registered tons of vessels,” the authority said.

Here’s the carrier draw: to remain competitive with other ports in the region, Chennai’s concessions range from 20 to 55 percent on prescribed service fees applied by the port authority. And they want carriers to bulk-up their volumes: “The quantum of concessions would be worked out based on the total mainline container volume achieved by a particular service run by individual mainline vessel operator or service partner during the year linking with GRT of vessels,” it said.

With the country’s surging public sector international investment incentives, India’s serious about becoming a truly open, fully engaged marketplace. Their timing’s terrific, as nations globally will benefit from expansion a billion-consumer base can provide.

Want in on the savings, to/through India, or elsewhere? A shipper’s fiscally beneficial option: consult Data2Logistics for transportation savings domestically and globally. Data2Logistics assists with supply chain network analysis, freight spend trends identification and cost reduction action, carrier services measurement, RFQ/RFP management (when and how to go to market) and leverage pooled purchasing opportunities across business units, geographic regions and freight consortiums.

Redefining Infotainment - Data2Logistics Optimizing Supply Chain and Logistics Freight Rates Video

Data2Logistics video from Supply Chain and Logistics Summit, focus on optimizing freight transportation rates to reduce shipping costs and increase operations flow. Rated ok for the kids to view; probably more interesting to you (no singing actors in animal costumes – yet…).

Data2Logistics Providing Parcel Shipping Analysis Study Addressing 2013 Carrier Cost Increases

Fort Myers, Florida and Rotterdam, Netherlands January 22, 2013 – Global supply chain information and technology company Data2Logistics announces the company’s Professional Services Group’s freight parcel analysis study for supply chain cost savings addressing 2013 price increases. The analysis identifies shippers’ exposure, impact and options to mitigate avoidable supply chain transportation costs by determining what portion of their parcel expenditure is exposed to pricing increase, data mining shippers’ historical supply chain flow to determine service efficiencies and associated cost savings, in light of this years’ air and ground parcel price increases. The objective of the analysis is to optimize appropriate service levels per shipment and enhancing transportation transparency and efficiency, while minimizing cost.

“With the new year, announcements were made of higher parcel shipping rates by the major carriers, at a time when companies are faced with demand for supply chain cost reduction to offset tightening product profit margins,” states Leif Holm-Andersen, Data2Logistics’ Executive Director of Professional Services. “Our analysis study indicates shippers’ impact to actually exceed carriers’ announced increases. Data2Logistics identifies shippers’ options to reduce these costs to offset rate increases, optimize freight transportation by reducing unnecessary shipping spend, and ensuring companies are being charged their correct rates via business intelligence data mining. Ultimately, the goal is improvements in shippers’ cost reduction and in relationships with their carriers.” Data2Logistics’ parcel air and ground shipping analysis study may be obtained by contacting Holm-Andersen, leif.holm-andersen@data2logistics.com.

Is Hong Kong’s Blueprint for Global Economic Interaction the World’s Pathway to Prosperity?

Washington, D.C.-based research and advocacy institute Heritage Foundation has Hong Kong topping its 2013 Index of Economic Freedom, for the 19th consecutive year.  The Index, which ranks 177 global economies, measures 10 fiscal freedom factors. Among them Hong Kong retained its top position in trade and financial freedom, ranked second in investment freedom and property rights, and another silver medal in the business freedom race.

Hong Kong’s governmental long-standing policies actively supporting open market participation, fostering international investment and attractive import-export trade parameters, has created a sustainable guide for nations seeking to finance infrastructure improvements, foster local employment and establish economies based on generating production capacity and export demand, along with an appetite for internationally-sourced products encouraged by growing national household incomes and discretionary currency. And they accomplished this economic establishment amongst China’s emerging economy, a nation who took notice of their neighbor’s prosperity and borrowed a few playbook pages for their benefit.

It’s worked remarkably well for China, proving even a communist-ideological country can benefit from spot capitalism powered by international investment and trade. Is it possible that Hong Kong – and China, who’s in a more closely financially identifiable state for achieving emerging status – be guides for countries seeking economic continuity?

US Manufacturing Upping the Happy for Supply Chains Globally

“…get my happy back again.” – REM

That phrase sticks paradoxically; Michael Stipe’s manically depressively inspirational ‘Lotus’ echoes humanities’ emotional existence-state ebbs and flows. Following when we fell, in 2008, it was difficult to determine the direction up. There was a collective isolation amongst us all; a numbing panic.

But maybe, baby, we’re past that time when we could barely breathe. Seems no suspicion the moment’s hesitation failed to manifest industrial incapacitation. Get this – U.S. exports of goods and services totaled $2.2 trillion in 2012, a whoa (!) -inspiring 38.7 percent higher than exporting volumes of 2009, with related supply chain activity growing an average of 11.9 percent annually during these most recent four years, so says U.S. Commerce Department findings. Here’s clarity that the manufacturing sector has held up well during otherwise disturbing times of emotional and economical human experience.

Will the World Build India’s Infrastructure via Market Access Investment?

As further evidence of the BRIC’s ‘I’ increasing interest in internationally sourced goods, India’s December 2012 imports were valued at $42.5 billion, rising 6.3 percent from December 2011’s $40.0 billion, according to the country’s Ministry of Commerce and Industry.

As India’s government continues to court investment from global sources for in-country employment and infrastructure improvements, will it be this international market access investment that finances the nation’s imported-product supply chain structural build-out, successfully furthering its emerging (and exporting) development?

On the subject of export currency, if you’re currently or are planning product exports to India, Data2Logistics can help control transportation costs via data mining business intelligence databases of options available pertaining to your specific needs. It’s welcomed savings in our domestic environment of tight product profit margins.

Laos Newest Southeast Asian World Trade Organization-Sanctioned Marketplace

As the Southeast Asian region strengthens as a world market component, another entrant emerges: Laos. After 15 years of negotiations with the World Trade Organization (WTO), the nation has enacted over 90 laws and regulations to gain the trade group’s inclusion, covering issues including trading rights, import licensing, customs valuation, investment, sanitary and phytosanitary measures, technical barriers to trade, and intellectual property rights. Laos officially becomes the organization’s 158^th member nation February 2, 2013.

WTO delegations welcomed Laos’ membership, paying tribute to the nation’s efforts and the collaboration of organization members. The WTO indicated the market opening and economic reform accompanying membership, with its principles of transparency, predictability and rules, would help the country develop and make it more attractive for foreign investment. Laos has made initial market access commitments in 10 sectors: business services, courier and telecoms services, construction, distribution, private education, environmental services, insurance, banking and other finances, private hospital services, tourism and air transport. Multinational-access companies in these categories have opportunity to build reliable supply chain infrastructure to sustain the nation as a continuing trade partner and growing marketplace, as demand for imported goods grows as their economy continues to develop.

It’s fascinating watching the entire world opening to viable multinational commerce, happening in our lifetime. As companies continue to seek additional markets for their goods, further economic development of previously isolated regions fosters a welcomed urgency with probability of prosperity beneficial to all in participation.

Lower Diesel Price Projections, Higher Cost Reduction Expectations

According to new projections from the U.S. Energy Information Administration, diesel fuel retail prices averaged $3.97 per gallon during 2012 and are forecasted to fall to an average of $3.87 in 2013 and even further to $3.78 in 2014.

If you’re facing upcoming fuel contracting, your timing may be fortunate. You know that along with these cost savings comes increased supply chain spend reduction expectation ahead of unprecedented political and economic uncertainty, and full realization of its marketplace impact. To satisfy, consult Data2Logistics for additional savings to benefit your supply chain domestically and globally. Data2Logistics assists shippers with transportation network analysis, freight spend trends identification and action, carrier services measurement, RFQ/RFP management (when and how to go to market) and leverage pooled purchasing opportunities across business units, supply chain regions and freight consortiums.

US, Canadian Customs Ease Cross-Border Shipping, Quicken Supply Chain Moves

U.S. Customs and Border Protection and the Canada Border Services Agency have increased and harmonized the value thresholds for expedited customs clearance to $2500, from $2000 in the US and $1600 in Canada. These actions deliver on a commitment under the U.S.-Canada Beyond the Border Action Plan to promote supply chain connectivity by harmonizing low-value shipment processes to expedite customs administration.

"Today's announcement will make it easier and faster for Canadian and American businesses to move goods across our shared border," said the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway.  "Increasing and harmonizing these thresholds will allow an additional 1.5 million shipments to be cleared on the day of arrival, instead of these goods being held up in customs clearance.  This is another example of how our governments' Beyond the Border Action Plan will benefit importers and exporters and is laying the foundation for more jobs, growth and prosperity in both countries."

"Canadian and U.S. businesses are the true beneficiaries of the Beyond the Border Action Plan and the change implemented today," said Mike Tierney, president, UPS Canada. "Each day, more than $1.6 billion worth of goods cross our common border bringing the annual value of traded goods to more than $580 billion. Yet, every year $16 billion in trade activity has been lost due to border delays. This change will allow for swifter movement of goods for importers and exporters of all sizes." 

Speed’s the story here, ultimately reducing time-to-market for all goods crossing the border by increasing supply chain transportation efficiency for all involved. It’s painless public sector steps like this that ripple positive economic impact. If this action benefits your business, further decrease your shipping costs with Data2Logistics. Their business intelligence technology, subject matter expertise and knowledge of the carrier marketplace will assist optimization of your transportation operations and reducing related expenses. They identify opportunities to develop partnerships with carriers and remove excess cost from your supply chain to boost your profitability.

To Russia with Love, Supply Chain Arms Wide Open

U.S. Trade Representative Ron Kirk signified the signing by President Obama of H.R. 6156, the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law and Accountability Act of 2012, which authorizes the establishment of permanent normal trade relations with Russia and Moldova. This step will allow the United States to apply the World Trade Organization (WTO) agreement to Russia, enabling U.S. manufacturers to access the growing Russian market and offering new, job-supporting trade opportunities for U.S. businesses.

“The United States strongly supported Russia’s accession to the WTO, because it is in the interest of our exporters and the Americans they employ to bring Russia more fully into the global trading system,” stated Ambassador Kirk. “With the signing of this legislation, American businesses and workers are closer to enjoying the full economic benefits of Russia’s WTO commitments.”

The National Association of Manufacturers (NAM) applauded the move. “As the ninth largest economy in the world, the Russian market presents a great opportunity to grow exports,” said Jay Timmons, NAM President and CEO.

If this initiative impacts expansion of your European supply chain into Russian regions, as you factor associated transportation expense with ROI, consider shipping cost control with Data2Logistics. Utilizing their business intelligence technology, subject matter expertise and knowledge of the marketplace, you’ll optimize transportation operations, improve service and reduce related expenses. They identify opportunities to develop partnerships with carriers and remove excess cost out of end-to-end supply chains to drive your profitability when faced with costs associated with route options in new geographic markets.

ISM Indicates US Manufacturing Activity, Exports Up – Spirits Up

December 2012’s Institute for Supply Management Report On Business® indicated economic activity in the manufacturing sector expanded for the month, with the overall U.S. economy growing for the 43rd consecutive month. The report is based on data compiled from purchasing and supply executives nationwide.

Manufacturing industries reporting December growth included Furniture & Related Products, Paper Products, Petroleum & Coal Products, Wood Products, Primary Metals, Computer & Electronic Products, and Food, Beverage & Tobacco Products.

U.S. new orders, production and employment have now grown for four consecutive months, along with the overall national economy.

If you can stand any more good news, U.S. exports in December rose 4.5 percent versus a 3.5 percent increase in imports. To further put this hopeful trend in your favor, utilize Data2Logistics’ services for supply chain financial optimization. Their business intelligence guidance for cost reduction and improved oversight includes focused resources to support projects including network analysis, pooled purchasing, RFP management, carrier negotiations and transportation management system software, along with informed audit and freight payment services. Together, you’ll Ship Smarter and Save.

Would a Wholly Privatized USPS Create Greater Parcel Capacity?

USPS is the country’s original nationwide volume parcel carrier, and has been pushing the position to SMB’s of late to bolster its market share in the category. Their most formidable competition may be coming from within: mounting contractual debt combined with decline in First and Third-Class volume, long their profit centers now short on volume and corresponding revenue. Is privatization their road to profitability?

Across the pond, UK equivalent Royal Mail is actively considering such a move, capitalized by a London Stock Exchange float. The imminent: “We are committed to injecting private capital into Royal Mail to help ensure the ongoing viability of the company. Momentum will continue to as we put all of the building blocks into place,” stated business minister Michael Fallon. Royal Mail has appointed Barclays Bank as its adviser, and hired Goldman Sachs, Merrill Lynch and Bank of America to pitch the company to prospective investors. The motivation: demonstrated growth in parcel revenue they’d like to continue realizing by expanding capacity to accommodate.

Would greater parcel capacity manifest with USPS operating as a wholly private organization? Their debt and decline in personal and bulk mail volume have developed from occurrence to trend; those issues will have to be addressed. Private capital infusion and operation could provide options currently unavailable, stave reoccurring debt and revenue loss, and further monetize the organizations’ unrivaled geographic distribution and market reach with increased volume ability of profitable B2B and B2C parcel. All with the ability of maintaining First and Third-Class service consumers and marketers would miss should it cease.

It’s a new day for USPS – could this be their new way? Could domestic and global interconnect parcel shippers benefit from it?