The Trump tariffs have shaken the international trade industry for the worse. But there is more to the story of the current unimpressive global economy.&nbsp;Following decades of globalisation-led growth, the tide has turned. The World Trade Organization (WTO) reports global GDP growth down from 2.9 per cent in 2019 to 2.6 per cent in 2019 and 2020.<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>The ongoing trade war between China and the USA, the two world’s largest national economies, clearly causes pain for exporters. Tariffs and other trade barriers push import costs up, and exporters struggle to find buyers as their products become uncompetitive. Retaliatory actions between the two economic giants have escalated tensions in the past couple of years and contributed to a worldwide slowing of trade.The USA is at its most protectionist in a century, imposing almost 25 per cent tariffs on most of what it imports from China.But reduced export activity is not all because of President Trump’s trade strategy. Other factors have also had an impact on export activity.&nbsp;<h3>It's Not All Tariffs</h3>The Chinese economy is increasingly driven by domestic consumption as its middle class continues to grow and becomes more affluent. China can meet more of its needs from within and become less dependent on imports. And, as Chinese growth has slowed to its lowest for almost 30 years according to <a href="https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reports</a>, its demand for input materials and capital goods has reduced.&nbsp;<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;"></a>Rising nationalism, often fuelled by concerns in developed markets over globalisation, tends to make some markets more insular. Uncertainty hurts trade, so the unknowns around the UK’s expected no-deal departure from the European Union are adding to the slow down.&nbsp;&nbsp;&nbsp;Global trends can be amplified by local tensions too. For example, shipments to Hong Kong, a key Chinese destination, were <a href="https://www.business-standard.com/article/markets/hong-kong-unrest-is-worrying-india-s-jewellers-shipment-down-6-6-119090400867_1.html" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reported</a> to be down by an additional 6 per cent year-on-year in September 2019 because of the pro-democracy demonstrations in the city.&nbsp;Other trends have a bearing too. Globally, the threat of climate change has focused many people’s minds on the distance their food (and other products) travel. A ‘conscious consumption’ movement sometimes described as ‘locavore’ has emerged and gained traction. It boosts the local production of foodstuffs and reduces imports. Food exporters are hit by the sentiment of an increasingly progressive consumer population.&nbsp;<h3>Localisation and in-country investment offer an alternative</h3>As rising wages in China have forced multinational companies to look elsewhere for lower costs, India, Vietnam, Bangladesh and the Philippines have all been winners. And, as these countries experience growth, their citizens join the ranks of the consuming middle classes. Market entry specialists are thriving by offering a bouquet of services - market research and company registrations, tax planning and legal advisory - to foreign investors.Around the world specific forces are having an impact:<ul><li>In India, the Make in India program encourages companies to establish manufacturing in the country.In the European Union, France and Germany are actively encouraging Foreign Direct Investment with policies that make it easier for overseas companies to set up.</li><li>In Africa, Kenya is positioning itself as the strategic gateway to East Africa and hunting foreign investments.</li><li>Mexico is seeking to reduce its dependency on the USA as an export market. The government of Andrés Manuel López Obrador is inviting foreign investment into the country as a staging post to Latin America.</li></ul>Across the world, the terms of trade and investment are morphing.<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>Establishing bases in target markets offers a range of benefits. Manufacturers are exempt from import tariffs and may attract tax and other incentives. In-market production brings manufacturers closer to their customers and reduces logistics and other administrative costs.&nbsp;<h3>New Markets Offer New Opportunities</h3>Of course, there are alternative strategic responses to protectionist policies.&nbsp;If they look carefully, exporters may find that there are other demand hotspots, which they’ve traditionally not explored. Rising incomes in so-called emerging markets mean there are millions of affluent consumers driving demand for a host of goods and services. And for new consumers for whom choice has been limited, imported goods—from fridges and fashion to whisky and wines—often hold great appeal as a symbol of their newly-minted status.&nbsp;Across Eurasia, the Belt and Road Initiative (BRI), the largest infrastructure plan on the planet, is rapidly opening up new trade routes by sea and overland. Some are long-lost connections that formed part of the ancient silk route. Others are new networks that form a part of what author Peter Frankopan has dubbed The New Silk Roads.Exploring new markets may offer a hedge against current uncertainty without requiring a fundamental shift in the business model. Other approaches require a greater pivot.As a growth strategy, it requires a different type of business model from the traditional activities of import/export. But, for brave and ambitious exporters who find barriers to trade appearing where in the past none existed, local establishments could be the answer to their prayers.

Global Economy Meltdown - More Than Just Tariffs

Podcast with Lars Jensen: Global Shipping Insights & Future Trends

The movement of goods by the freight forwarding industry - taking the right product to the right place - has been in sync over time. Every experienced stakeholder has carved out a strategic niche (read, a profitability formula) to survive in the industry. With a cut and paste process in place, those shy of transparency and seamlessness in the system have fared even better. The mantra being&nbsp;–&nbsp;the more ‘broken’&nbsp;the process, the better they fare. In a nutshell, the number of service providers mediating the `inefficiencies’&nbsp;have kept growing. There is evidence that too many opportunists among them have led to the glaring inadequacies in the value chain. And so, when the world is actually shrinking to bring a customer and a supplier closer, this value chain keeps expanding. There is no mention of removing the&nbsp;“inefficiencies”&nbsp;at all.This dichotomy points to an emerging storyline that seems inevitable&nbsp;–&nbsp;a new alignment of freight centres may soon alter the geopolitics of the entire game. Suddenly, there appears room for newer players in an industry that has never seen any kind of paradigm shift anywhere – whether in India or anywhere else in the world. Have a longer association with this industry, and you can perceive a potential change in the behavioural pattern of users. A very very human touch industry seems right on the anvil of change. Watch this space for more…. Next: ‘User Behaviour. Change, will you?”

Disruption in B2B – Still a fait accompli?

B2B Business with Cogoport: Streamlining International Trade & Logistics

Supply chain has seen
tremendous transformation in the last decade. A lot of this transformation can
be credited to digitization. By introducing advanced technology in
the supply chain cycle at various crucial stages, work has become efficient and
cost effective. Digitization
and The Shipping Industry Supply Chain Sea transport accounts
for 90% of the trade. Shipping is complex in nature. The industry suffered
greatly due to the&nbsp;<a href="https://www.spiegel.de/international/business/that-sinking-feeling-global-crisis-hits-shipping-industry-hard-a-594710.html">global financial
crisis of 2008</a>. It is still playing catch up. The established way of
managing the industry supply chain does not seem to be profitable anymore. Understanding
the need for change and to reinvent itself, the shipping industry has started
to open its doors to digital disruption. It is now working towards creating a
digital supply chain. A global&nbsp;survey titled “Competitive Gain in the Ocean Supply Chain: Innovation That’s Driving
Maritime Operational Transformation”, conducted by Cargotec’s Business
Performance Innovation (BPI) Network and Navis and XVELA, highlights the
industry’s changing attitude towards digital.&nbsp;The respondents - who are in some
capacity or the other related to the shipping industry, pointed out the areas
which need improvement and can benefit from use of better technology. According
to the survey, the five areas that the industry needs to work on are - carrier to terminal coordination, supply
chain visibility and information sharing, terminal operations, cargo flow
visibility and predictability, and coordination across carrier alliances.Some of these issues
are being addressed.For example, earlier,
once shippers had handed over their shipment to the shipping line, tracking its
location was not easy. At most, they could get an update from the shipping line
on the location of their shipment when the ship called at a port. But now,
advanced technology has made it possible for them to get&nbsp;<a href="http://gpsworld.com/shipping-container-tracking-on-verge-of-big-increase/">real-time information</a> through a container GPS
tracking system on the location of their shipment. They can track the shipment
on their own. Process automation is
another area that shipping lines are exploring. Inventory management across
locations and providing freight quotes and shipment booking online are some of
the processes that are going digital. The industry has also
caught the fancy of the global start up world. There are start ups that are
working on managing documentation, offering&nbsp;<a href="https://www.cogoport.com/">freight comparison</a>, integrating different modes of
transport, and aiding customs clearance. While changes are
being implemented, digital adoption is slow and it is not yet uniform across
the industry and does not provide a common platform for all the parties
involved. Will Digitization be Beneficial for the Trade? Mostly, yes. It will
provide a solution for some problems and may not help address some others. There
are&nbsp;<a href="https://www.lloydsloadinglist.com/freight-directory/news/Digitalisation-‘no-panacea’-for-vessel-supply-demand-imbalance/68259.htm#.Wf9l_K2B1mA">doubts</a> that digitization
will not help resolve two of the main pain points of the industry – supply
demand imbalance and optimum vessel utilization. But, other simpler processes
and issues do stand a chance to improve with digitization. According to a&nbsp;report by Accenture, if the
industry can “standardize” its systems and processes, it will be able to create
an online value proposition for its customers. This standardization coupled
with digitization has many benefits for both the customer and the shipping
lines. Some of the main benefits of going digital are: 1. 
Time and Transparency:
A
digitized process has to be standardized, else it does not work.
Standardization helps create transparency in the system. It reduces the scope
for human errors, manipulation of prices and inventory. Digitization will
ensure a speedy completion of tasks. 2. 
Documentation
Management:&nbsp;Documents
are a major part of shipping. Maintaining multiple documents and filing them
takes up both time and space. Taking the process online will help save on both.
In future, it can also help create an integrated documentation platform
that can be accessed by all the parties (exporter, importer, shipping lines,
ports, banks, storage) involved in the transaction. Thus, paving the way to a
paperless system. 3. 
Door – to – Door
Tracking:
New technology is making it possible to track containers on a real time basis.
This will go a long way in helping customers provide updates to their
business partners and plan further logistics. 
4. 
Improved Analytics:&nbsp;Availability of data
from all touch points and tools to analyze that data to help make better
business decisions is one of the main offerings of advanced technology.
Shipping lines can use data collected from various sources to offer better
services, plan new trade routes, and allocate space. 5. 
Better Operational
Integration:&nbsp;Transporting
a shipment from one location to another involves participation of different
modes of transportation and handling at different touch-points. If all of the
services can be integrated, it will help provide a seamless experience to the
shipper and reduce loss arising out of delays and operational inefficiency for
the service providers. It will also help various service providers – ports,
road &amp; rail transporters, storage, and shipping lines to plan better and
ensure maximum utilization of their space and equipment. 








Going digital can
help the shipping industry become efficient and reduce cost for certain
processes. But, the benefits from these changes can be reaped if the industry
as a whole adopts new technology.

The Digital Supply Chain: Benefits for Shipping

Digitization in Supply Chain: Benefits, Challenges & Implementation

The B2B marketplace is perceived&nbsp;tech-&nbsp;phobic&nbsp;which means&nbsp;anything&nbsp;that&nbsp;smells&nbsp;automated to&nbsp;the user&nbsp;cannot be&nbsp;simple.&nbsp;The&nbsp;fight is on, to&nbsp;prove&nbsp;that it is&nbsp;but&nbsp;very&nbsp;simple. It&nbsp;just needs&nbsp;to be&nbsp;addressed, that’s&nbsp;all. Technology need&nbsp;not be feared, it does add only value.&nbsp;The buyer will save time and money and&nbsp;the seller will save on customer acquisition cost, where if a shipper wants rates and clearance, technology will give it all - value, in every service that is provided.&nbsp;How this new striker with a tech-enabled model can herald a movement is to make a statement and deliver a complete package in terms of the price discovery that can assure clarity, compliance to rules, speed, transparency, profitability and instantaneousness.&nbsp;A lot could be replaced by adding value through technology.Tech can be predictive, Tech can analyse.&nbsp;Said and done, pure tech play cannot change human nature. Herein lies the trick.&nbsp;Technology will need Humans.Solution: the tech driven model brings in the now-needed human touch.&nbsp;A hybrid platform which is not merely a portal, which can be an assisted process to transact the deal.&nbsp;Why hybrid?&nbsp;Because a full-fledged technologically sound platform may not quite be what the buyer may want to adopt immediately. Show the buyer a face, a voice that is capable of being the guide and give some comfort with the initial handholding- that is what technology will do...take it whole lot further.The idea is brilliant, so why wait till the concept gets tested?<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>Watch this space for more…. Next: “The Limit(lessness) of Technology”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Technology - The need for a human face to it

Technology and Human Need: Balancing Innovation in Logistics

One of the questions we get a lot at Cogoport is what the difference is between Cogoport and regular or digital freight forwarders. You can book a container shipment at a freight forwarder as well, right?Well technically, yes, you can. But there are a LOT of differences. I’m happy to take you through some of them.<h2>All Suppliers vs. Preferred Suppliers</h2>Freight forwarders may have contracts with certain carriers, which can result in the fact that they will favor these carriers. They have a direct commercial interest in which carrier you choose.If you use the Cogoport platform you can book shipments with all carriers on the platform. Cogoport has no contracts that would cause us to promote a certain carrier. We present you with all the options and the choice is yours. We empower customers to make their own free choice.<h2>Specified Rates vs. All-in Rates</h2>Freight forwarders often give you all-in rates. You get a price for your shipment without really knowing what you are paying for.If you use the Cogoport platform you get a full and transparent breakdown of all the cost involved in your shipment. All charges to you are clear and specified. Our promise to you is: no surprises. There are never any additional charges for any reason after the shipment is booked. What you see is what you get.<h2>Full price comparison vs. Ocean freight price comparison</h2>Freight forwarders often let shippers choose between different ocean freight rates. The total landed cost of each shipment, however, can be very different.If you use the Cogoport platform you not only get the ocean freight rate but also complete insight into all other related costs, whether they are at the port of origin or the port of destination. That way you can base your decision on the total landed cost. Not only port-to-port but door-to-door if you want.<h2>Pro-active vs. Reactive Notifications</h2>Booking a shipment at a freight forwarder usually involves many phone calls and emails. The same goes for tracking your shipment.If you use the Cogoport platform you get full visibility for all your shipments. For each shipment, there is a clear overview of all the milestones and it’s easy to find a detailed track and trace information if you need it. You will also get an instant notification if there is an issue with one of your shipments. You can have peace of mind and use your time to focus on other matters. As long as you don’t hear from us everything is fine.<h2>The 4 main differences between digital freight marketplace Cogoport and a freight forwarder</h2><ol><li>An unbiased overview of all available carriers</li><li>Specified rates. What you see is what you get.</li><li>Choosing a carrier based on total landed cost.</li><li>Peace of mind. Pro-active notifications if a shipment needs your attention</li></ol>

Difference Between Freight Forwarder and Cogoport

Freight Forwarder vs Cogoport: Key Differences & Advantages for Shippers

The shipping industry is undergoing a technology revolution. This age-old industry which, till the last decade, was hesitant to harness new technology, has now taken up all-round modernization with a vengeance.Today, globally, the industry as a whole is exploring and implementing new technology in all spheres of the trade. Ports, ships, systems and processes, and allied services are all getting a technological facelift. The industry’s efforts to digitize are also being aided by startups that are creating tech solutions specially for it. Technologies like Robotics, AI, machine learning, internet of things, blockchain, drones, and augmented reality are being harnessed to create a safer, efficient, and more productive environment to carry out export and import trade.While there are many changes that are happening in the world of shipping – and all are important, here are some that have captured our interest:Robotic Technology: Robots have infiltrated almost every industry in some way or the other. Now, they have turned their tech-eye on the shipping industry. Research institutes and companies in the automobile, transport, tech sector are collaborating to build robots that can aid in ship management, safety, servicing, and inspection.Among these, SAFFiR – Shipboard Autonomous Firefighting Robot, being developed by the US Navy Research Lab in collaboration with Virginia Tech, has caught our interest. And, for a good reason too.&nbsp;Fires on ships can cause huge damage to human life, environment, and the cargo on board. For example in the recent&nbsp;<a href="https://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/fire-on-container-ship-under-control-no-word-on-missing-crew/articleshow/63237662.cms">fire</a> on Maersk Honam, four crew members have been reported missing and insurers are&nbsp;estimating a loss of millions of dollars in claims from the vessel carrying more than 15,000 TEUs.While accidents on sea cannot be completely avoided, loss of human lives and cargo can be, to a certain extent, mitigated by fire fighting robots that are designed to take charge in such situations. SAFFiR which is currently being built for US Naval Ships would be a great addition to cargo and passenger ships as well.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/K4OtS534oYU?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Hyperloop Transport System:&nbsp;Hyperloop, an idea conceptualized by Elon Musk, is a transport system that is designed to carry people or cargo from one destination to another via a tube at a speed more than 700 mph. Along with the rest of the world, this technology has also caught the attention of Prime Minister Narendra Modi and the Chief Minister of Maharashtra Devendra Fadnavis. In February 2018, they&nbsp;signed an agreement with Sir Richard Branson, founder of the Virgin Group and the chairman of Virgin Hyperloop One, to develop a hyperloop route between central Pune, New Pune International Airport, JNPT Port and Pune’s economic and industrial zones. The Hyperloop One will help facilitate quick transportation of palletized cargo and lightweight cargo between the port and industrial zones in Pune. According to&nbsp;<a href="http://indianexpress.com/article/technology/tech-news-technology/mumbai-pune-virgin-hyperloop-one-project-everything-you-need-to-know-5069402/">reports</a>, the proposed hyperloop will provide benefits like reducing accidents, socio economic, savings in time and operational cost worth USD 55 billion over a time period of 30 years. It will also help reduce greenhouse gas emission by approximately 86,000 tons/year, and lessen the traffic load on the connecting expressway. In addition to all these benefits, as Virgin Hyperloop One said on the occasion of the launch, the hyperloop will cut down lead times and help build a leaner and more efficient supply chain.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/OBuVkQIy7eU?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Smart Ships: We have smart gadgets, smart homes, and smart cities, then why should ships be left behind?&nbsp;Ships are set to become smart, tech-savvy, and autonomous soon. In fact, the first smart vessel Yara Birkeland&nbsp;is planned to be launched this year. It is predicted to become fully autonomous by 2020.Automated ships will add a technological edge to the shipping industry by improving efficiency, productivity, and carrying capacity. Since these ships will be remotely managed, the fear of loss of lives of crew members at sea will be eliminated and in a way it will also change the profession.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/5VBD7hVRhx0?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Blockchain Technology: The blockchain technology is now no longer limited to bitcoins. It is being explored by various industries to manage, transfer, and store data in a safe and secure manner. Shipping is also among the industries exploring technology to add efficiency to processes and integrate the supply chain from start to end. The system based on blockchain technology will make it easy to transfer data and track cargo in real-time till it reaches the final destination.Augmented Reality: AR is another technology that can add immense value to the shipping industry. It can optimize cargo planning, aid maintenance and inspection, navigation, connect global teams, and also help in creating awareness about the industry which is not easily accessible to people not connected to it. For example, very rarely does a person not in the industry get to visit a container ship or for that matter the port. AR can make it possible to provide outsiders with a view of the industry. Port360, a virtual tour of the Port of Rotterdam, is one such example of this technology being used for connecting with businesses and also educating people not connected to the world of shipping about the port and how it operates.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/0faa2f99f63fb9e86c4735679a43cb79/BotlekPernis_2.jpg" alt="Port of Rotterdam" class="center" width="" style="letter-spacing: 0.01rem;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Image source: Port of Rotterdam.&nbsp;Click&nbsp;here to take the tourThese innovations are just the tip of the iceberg. Shipping is changing and the speed at which technology solutions are being created for the industry, it would not be wrong to term this period as a rebirth of one of the world’s oldest industries. And, we’re proud to be a part of the technology revolution that is transforming the shipping industry.

Shipping Tech Revolution: 5 Technologies

Technologies Transforming the Shipping Industry: Innovations & Future Trends

Speculation over the Brexit effects grows as the saga is nowhere near finding a conclusion. People all across the globe anxiously wait for the terms of separation of the United Kingdom from the European Union to see how it affects their businesses.&nbsp;In 2016, the people of the UK voted to leave the EU in a move to set their own trading rules and control a range of issues such as the movement of labour, agricultural policy and tariffs. Three years on the terms of the divorce are still being debated and the implications for the shipping industry remain unclear.We’ll try to help by summarising a few possibilities - but don’t blame us if we get it wrong as things seem to change daily!Crucially the separation process was intended to have two parts. The initial exit - or Brexit - was the stage when formally the UK left the EU. Subsequently, the EU and the UK need to agree to the terms of their future relationship.However, agreeing terms of the exit still hasn't happened and it looks as if the UK is heading towards a ‘hard Brexit’ on 31 October with a mass of uncertainty and disruption.WTO tariff rules apply to trade between the UK and EU.Before the split, as part of the same customs union, no tariffs were applied to intra EU trade. However, the divorce can lead to both European Union countries and the UK trading under WTO rules which come with tariffs and regulations. If no alternative to applying WTO trade rules is found, businesses and consumers in the UK will likely face price increases and find exports to the rest of Europe become unattractive.New border, new rulesThe situation of the customs regulations after the split is still uncertain. Before, custom checks only applied on goods entering the EU; once inside, they crossed borders mostly without additional checks or paperwork. However, clarity has yet to be provided about the procedures for goods moving in and out of the UK.Doubts have also risen on whether trucks from the UK will continue to move freely in Europe or would they require fresh permits. More importantly, there is also no clarity as to whether the UK will still apply EU standards and regulations covering goods or would the newly separated country develop its own. The impact of UK-only rules would mean that goods produced for that market might be barred from sale in the EU.Another place where a problem of customs checks could be encountered is the border between Northern Ireland and the Republic of Ireland. Currently, goods move freely within the island of Ireland but Brexit could mean the return of a border with customs checks between the Republic and Northern Ireland which is part of Great Britain.&nbsp;There are significant political and historical implications to the reimposition of a hard land border and this has proved to be one of the biggest sticking points in the negotiations between the UK and the EU.&nbsp;Whatever the outcome in Ireland, border checks elsewhere between the UK and the rest of the EU may result in considerable delays. Presently, according to to the London School of Economics, it takes roughly two minutes for EU countries to clear their goods at the port of the UK. Fuller checks post-Brexit effects could take much longer and the main ports lack the infrastructure to cope with large backlogs of goods awaiting clearance. Significant delays are possible.Increased transportation and labour costsShipping charges from the UK and EU countries can increase. And so can the costs for the trucking services. Britain may face a shortage of drivers as 10% of their commercial drivers are migrants from the union countries. If a substantial proportion of the labour force is lost there will implications for the cost and availability of freight services. Additionally, UK companies had the luxury of EU maritime cabotage rights while they were a part of the union. This meant that they had the rights for water-based transportation within a territory. The separation can also see these rights been revoked.It is still uncertain whether the UK will separate from the European Union with a deal or without it. Hopes that the separation could be achieved with some agreement over the terms governing customs and regulations (the so-called ‘Soft Brexit)’ are fading fast. A no-deal Brexit where the UK overnight becomes a stand-alone country without an understanding about its relationship with the largest trading bloc on Earth is likely to be chaotic.Check out Cogoport’s <a href="https://www.cogoport.com/blogs" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">blog</a> to get more on the latest update of Brexit now!* The information contained in this article is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Unseen Effects of Brexit on the Shipping Industry

Brexit Effects on Shipping Industry: Challenges, Opportunities & Adaptation

After rolling out GST last year, Government of India introduced the&nbsp;e-way bill system&nbsp;in February 2018. While the initial endeavour to roll out the new tax collection method was not successful, it fared much better in the second attempt made in&nbsp;<a href="https://www.cogoport.com/blogs/eway-bill-amendment">April 2018</a>. By end of May 2018, the GST e-way bill system had been successfully implemented for inter-state movement of goods in 21 states and six Union Territories. After effective execution of the new process in interstate goods movement, starting June 2018, GST e-way bill rule has been implemented for intra-state movement of goods throughout the country. Why is the GST e-way bill so important? The e-way bill system is a part of the GST regime. This system has been created with the aim to systematize logistical movement of goods in the country, improve and increase tax collection, and in turn control tax evasion.<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>What is an e-way bill? The GST e-way bill is an electronic document that is required to be carried by the transporter when transporting goods worth more than INR 50,000 via a single bill/delivery challan/invoice. What are the other benefits of the e-way bill system?Apart from making the country’s tax structure efficient, it is also believed that GST e-way bill system will provide the following benefits to the trade:<ul><li>GST e-way bill generation system is digitized and easy-to-use. This means that traders (taxpayers)/transporters will no longer need to go to check posts to generate an e-way bill.</li><li>Waiting time at check posts is expected to reduce with the introduction of e-way bill. This will help reduce not only transit time but also better manage road congestion and improve turn-time of vehicles. Reduced transit time will also positively impact transportation costs.</li><li>GST e-way bill system has simplified documentation pertaining to movement of goods. Unlike earlier, where each state had different documentation demands, now the documentation required for movement of goods has been made uniform. </li><li>Along with digitization of e-way bill generation, even the transport vehicles have been equipped with RFID devices to facilitate easy check of e-way bills. This has reduced the burden on the transporter to carry the physical copies of the e-way bills. </li><li>GST e-way bill system has made it easy to verify and check transactions for tax purposes for both the taxpayers and the tax administration. </li></ul>When should an e-way bill be generated or issued? An e-way bill is required to be generated or issued when a consignment worth INR 50,000 is going to be transported via a single delivery challan/invoice/bill. This value can be the total of all goods transported in the vehicle or of the invoice of each shipment being transported in a vehicle.&nbsp;Such movement of goods can be due to reasons of supply of goods, return of goods, or purchase (inward supply) of goods.A GST e-way bill also needs to be compulsorily generated in the following scenarios:<ul><li>Movement of goods, even if the goods being transported are less than INR 50,000, for inter-state transfer by the Principal to a job-worker or registered job worker. </li><li>Inter-State transport of handicraft material by a trader who is exempted from GST registration. </li></ul>Are any goods exempt under the e-way bill generation rule?The movement of the following goods does not require an e-way bill:<ul><li>Perishable goods – fruits, vegetables, meat, milk and milk products </li><li>Silver and gold jewellery </li><li>Raw silk </li><li>Handlooms </li><li>Wool </li><li>Cooking gas cylinders </li></ul>Who is required to generate an e-way bill?A registered person (trader, seller, buyer, consignor, consignee, transporter) is required to generate an e-way bill. An unregistered person also has to register on the e-way bill generation portal. However, an unregistered user is exempt from generating an e-way bill only if he is supplying goods to a registered person. In such a scenario, the registered person will be responsible for generating an e-way bill.<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>Is an e-way bill required in all movement of goods?No, there are some exceptions where an e-way bill is not required. For example, an e-way bill is not required for:<ul><li>Movement of goods under customs seal or direction </li><li>When movement of goods is via a non-motor vehicle form of transport </li><li>Transportation of goods under customs bond from ICD to port or one custom check point to another </li><li>Transit cargo from Nepal or Bhutan to India </li><li>Empty containers used for transporting cargo </li><li>Shipments/goods transported from customs port, air cargo station/complex, airport, customs check post to ICD or CFS for customs clearance process </li><li>Rail transportation of goods by State Government, Central Government, or any local authorities </li><li>Goods exempt under the GST e-way bill rule by the respective State/Union Territory </li><li>Movement of goods for/due to defence requirements with Ministry of Defence&nbsp;listed either as a receiver or a sender </li><li>Seller, sender, consignor of goods transporting goods to or from his place of business to weighbridge for the purpose of weighing the cargo within a distance of 20kms. A delivery challan should be sent along with this kind of cargo movement. </li><li>Movement of goods listed under annexure to rule 138(14), goods considered as “no supply” according to Schedule III, and specified Schedules of the Central Tax Rate notifications. </li></ul>From where and how to generate an e-way bill?It’s simple! To generate an e-way bill all you need to do is register on the e-Way Bill System&nbsp;portal. Does an e-way bill have a validity period? What is the validity period?Yes, e-way bills have a validity period. It is based on the distance that the goods are transported. The validity period starts from the date and time of generation of an e-way bill.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/db01c10668c07284b931d80701357e66/eway%20bill%20new%20slide.jpg" alt="e-way bill" class="center" width=""> <img>What are the documents required for generating an e-way bill?The following documents are required for generating an e-way bill:<ul><li>For transportation by road the transporter ID or vehicle number is required </li><li>For transportation by rail, air, or sea, the transporter ID, transport document number, and the date of the document is required </li><li>Bill of Supply, challan, or invoice pertaining to the goods being transported </li></ul>For more information on the GST E-way Bill system, processes, and how to generate an E-way Bill visit&nbsp;Goods and Services Tax e-Way Bill System&nbsp;Portal.&nbsp;

E-Way Bill Update: All About GST System

Everything You Need to Know About Eway Bill: Rules, Process & Compliance

<h3>Trade Deficit – What is this?</h3>A trade deficit, also known as Net Exports, is an economic condition that occurs when the imports is more than the exports in a country. The value of deficit is calculated as the difference in value of goods being imported and the value of goods being exported. This is one way of measuring the International trade of a country and is also known as the Negative Balance of trade.<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>Depending on the circumstances in the country involved, the duration and size of the deficit and the policy decisions made, trade deficit can confer positives or negatives for the country. In the current scenario, United States has the largest trade deficit by far, with an imbalance of more than $7.3 trillion which has been accumulated in the past decades. The other countries that are facing deficit are Australia, United Kingdom, Mexico and Brazil. In the meantime, there are countries that have surpluses by exporting more than they import such as China, Japan and Russia.<h3>What Causes Trade Deficit?</h3>One of the main reasons why trade deficit occurs is when the country fails to produce everything it needs, has to borrow from other countries and pay for the imports. This is known as Current Account Deficit.Trade deficit can also be a result of manufacturing happening in foreign states. The raw materials that are required for manufacturing are shipped overseas to factories in other countries which are considered as exports. When the finished products are shipped back to the country, it is considered as imports. The imports are subtracted from the GDP (Gross Domestic Product) even if the earnings support the company’s stock price.<h3>What are the Pros and Cons of Trade Deficit?</h3>Economists react to trade deficits in different ways. While it implies that the country is living beyond its means and accumulating too much debt, there are reasons to say that trade deficit can be more pro-cyclical and is moving in the same direction as its GDP.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" alt="" width="300px">Employment Opportunities – When a trade deficit persists in a country over a period of time, it can affect the economic growth and stability. If the imports exceed exports, the domestic jobs will be lost to foreign countries. Even though this makes theoretical sense, it is also said that there will be unemployment at low levels with trade deficit and there can be more unemployment in countries that have surpluses.Value of Currency – The value of currency of a country is directly impacted by the demand of a country’s exports. When the demand for exports of a country falls compared to imports, the value of currency should ideally decline. In other words, trade deficit indicates whether a country’s currency is desired in the world market. Foreign Investments – Trade deficit should be offset by a surplus in the capital and financial account. Nations with deficit experience greater degree of foreign direct investments and ownership of government debt. As a conclusion, trade deficits are not always detrimental in the long run as the currency will always come back to the country in some form or another, such as foreign investment.<h3>What is the Bottom Line?</h3>Theories suggest that that having persistent trade deficits can be detrimental for the economy of a country by affecting the growth, employment and currency. However, countries like the US which is one of the biggest deficit nations has proved this theory wrong, time and again. This might also be because, US is the world’s largest economy and dollar is considered as the world reserve currency.When it comes to developing countries, trade deficit can bring upon a negative impact if it persists for a longer period of time. However, the advocates of free markets suggest that trade deficit corrects itself over a period of time through adjustment of exchange rates. Secondly, when there is competition in the world market, trade deficit is bound to correct itself. Ultimately, the impact of trade deficit will be determined by the consumer preferences.

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