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?