<blockquote><em>As the growth of the Chemical Industry skyrockets, so does the logistics aspect of it. </em></blockquote><p>The market share of the chemical industry is 178 billion USD of the entire global industry, which is expected to be 300 billion USD by 2025. India holds a strong position in the exports and imports of chemicals at a global level, ranking <strong>14th in exports and 8th in imports</strong>. </p><p>Chemicals are used in nearly 96 percent of the manufactured items, making dependence on the chemical industry crucial and very high. As a result, logistics in the chemical industry also remain vital. According to <a href="https://www.precedenceresearch.com/chemical-logistics-market" target="_blank">Predence Research</a>, the market size of chemical logistics was valued at 265 billion USD in 2021. With a CAGR of 4 percent, the industry is on the rise. By 2026, the Indian speciality chemical industry is predicted to <a href="https://www.livemint.com/industry/indias-share-in-global-specialty-chemicals-market-to-double-in-5-years-crisil-11646296797299.html" target="_blank">double its global market share</a> to roughly 6 percent. As a result, India is importing aggressively, especially from China. About 77 percent of antibiotics, 25.8 percent of mixed minerals, and 69 percent of NHCs are <a href="https://oec.world/en/visualize/tree_map/hs92/export/chn/ind/show/2020/">imported from China</a>.</p><p><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></p><h3>Top 5 chemicals imported to India</h3><ol start=""><li>‍<strong>‍</strong>‍<strong>Nitrogen Heterocyclic Compounds</strong> – With a total market value of about 10 billion USD, NHC was the highest imported chemical. These are sourced mostly from Jinan, Qingdao, and Zibo. Major countries NHC is exported from China are India (15 percent), the US (11 percent), Japan (5 percent), and South Korea (4 percent).<strong>‍</strong></li><li><strong>Antibiotics </strong>– The market value of antibiotics is about 4 billion USD. Major importers from China are India (25 percent), the Netherlands (5 percent), and the U.S. (4 percent).<strong>‍</strong></li><li><strong>Nitrogenous Fertilizers</strong> – India again remains the biggest importer by importing about 30 percent of 2.8 billion USD worth of these fertilizers from China. The other major importers are Brazil and South Korea.<strong>‍</strong></li><li><strong>Mixed Mineral or Chemical Fertilizers </strong>– With a market value of 3.6 billion USD, Mixed Minerals are the fourth most exported chemicals. About 636 million USD worth of chemical fertilizers are imported to India.<strong>‍</strong></li><li><strong>Oxygen Amino Compounds </strong>– The export value of oxygen amino compounds is about 4.4 billion USD in China.</li></ol><h3>Interested in International Logistics for Chemical Industry?</h3><p>Cogoport, with five years of unprecedented experience in end-to-end shipping and logistics management aids importers in overcoming several trade challenges related to planning, booking, and executing shipments by helping shippers with rate discovery, booking shipments, and container tracking, credit solutions, and many more. We also have a dedicated supply team for trade from China and other Far East Asian countries.</p><p>If you’re interested in door-to-door service, we offer attractive rates and exemplary service for the countries mentioned above.</p>

Future of Chemical Logistics in India

Chemical Logistics on the India-China Trade Lane: Trends & Insights

<p><strong>&nbsp;Exports will be allowed on basis of permission granted to other countries to meet their food security needs and based on the request of their government.Read more on export opportunity from India</strong><br></p><p>Russia and Ukraine have traditionally exported 30% of the world’s wheat. But since the war started on February 22, Ukraine's trade has stopped completely, and Russia’s exports are effectively on pause due to ongoing sanctions. The global shortage is further compounded by droughts, floods, and heatwaves affecting production in other traditional exporting countries like the USA, the European Union, and Canada. </p><p>Whilst India has long been ranked as the second largest producer of wheat globally, until February Indian exports only accounted for 1% of global volumes. This leaves the opportunity for India to increase its exports of the Grain and Food. Sudhanshu Pandey, Secretary, Department of Food &amp; Public Distribution, Govt. of India clarified last week that the government has no plans to stop wheat exports. Wheat prices have jumped following this clarification.</p><p><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 1.png" width="auto" style="width: auto; height: auto;"></a></p><p>New markets are opening. Last month Egypt approved the import of 1 million tons of Indian wheat. In 2020, Egypt imported wheat worth about USD 1.8 billion from Russia and USD 610.8 million from Ukraine, to put this in perspective.&nbsp;This week, Turkey also approved imports of Indian wheat, jumping onto the list of new markets for Indian farmers, including Qatar and Indonesia.&nbsp;</p><p>About 60% of the world’s wheat importers are from the countries below. For smart Indian wheat exporters, this should be the focus area to find new business and boost exports. </p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/627cb6f0e4fd9650820be5a7_Screenshot%202022-05-12.PNG" loading="lazy" width="auto" height="auto" alt="627cb6f0e4fd9650820be5a7_Screenshot%202022-05-12.PNG" style="width: auto; height: auto;"></div></figure><p>Cogoport, with 5 years of unprecedented experience in end-to-end shipping and logistics management, aids exporters in overcoming several trade challenges related to planning, booking and executing the shipment by helping shippers with rate discovery, booking shipments, container tracking, credit solutions and much more. </p><p>If you’re interested in door-to-door service, we offer attractive rates and exemplary service for the above countries. </p>

Wheat exports slow down due to regulation

New Opportunities for Indian Exporters: Global Market Insights

<h4><strong>CIF &amp; FOB &ndash; A Comparison</strong></h4>
<p>"Risk and Cost Transfer, which used to be a hassle, has gotten a lot easier since our shift to FOB shipment" our client said recently in a conversation while booking shipments with us. This prompted us to dig deeper into the ramifications when importers switch shipments from CIF to FOB. The client, a renowned automobile manufacturer in India, has been working with Cogoport for the past three months and will be saving about 1 million USD (approx 7 crore INR) annually because of their recent switch to FOB.</p>
<p><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" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto"></a></p>
<p><strong>CIF</strong>, or <strong>Cost, Insurance, and Freight</strong> is an international shipping agreement in which the seller bears the cost, insurance, and freight charges while the shipment is in transit until it arrives at its destination.The risk is then transferred to the buyer at the loading port. There is a division of responsibilities between the seller and the buyer, just like in any other agreement.</p>
<p><strong>FOB</strong>, or <strong>Free on Board</strong>, is an international shipping agreement in which the buyer bears the cost, insurance, and freight charges while the shipment is in transit until it arrives at its destination.</p>
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center">
<div><img style="width: auto; height: auto;" src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/626665c2275427776bad1edc_blog%20copy-01.jpg" alt="626665c2275427776bad1edc_blog%20copy-01.jpg" width="auto" height="auto" loading="lazy"></div>
<figcaption>Cost Control of Importer/Buyer &amp;&nbsp;Exporter/Seller in CIF&nbsp;&amp;&nbsp;FOB</figcaption>
</figure>
<h4><strong>Is FOB good for you as an Importer?</strong></h4>
<p>Now the question arises: why should an importer pick FOB over CIF, given that FOB places more obligation on the buyer in practice? This is answered when we take a closer look at the CIF procedure. For a first-time shipper, CIF is not recommended. The seller has more control over the process and stakeholder decisions, while the buyer bears the brunt of the consequences. Now because the customer has no say in the shipping line's decision, the seller can pick the one with the higher profit margin, assuring a larger profit margin for himself.</p>
<p>Furthermore, the buyer bears the <a href="https://www.investopedia.com/terms/c/cif.asp">risk</a> during the entire procedure. Any damage that occurs while the container is in port prior to loading is also the responsibility of the customer. As a result, even though the buyer should ideally bear less risk, CIF makes it unfair for him.</p>
<p><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-2.png" width="auto"></a></p>
<h4><strong>How is FOB with Cogoport better?</strong></h4>
<p>Cogoport provides you with a <a href="https://www.cogoport.com/blogs/cogoport-global-trade-platform">Global Trade Platform</a>, where the buyer has the decision-making power in FOB transactions. The buyer can not only track the shipment but also compare the rates of various shipping lines as well as shipment schedules so they can find the optimal solution to get shipments from POL to POD. You can also make use of an additional credit facility with Cogoport's <a href="https://www.cogoport.com/blogs/ship-now-pay-later" target="_blank" rel="noopener">Ship Now Pay Later </a>once you start shipping with us.</p>
<p>Let us take a detailed look at the service that Cogoport, as your trade platform, helps you with:</p>
<ol start="">
<li>The shipment can be prioritized as per your requirement</li>
<li>Comparison of rates between various shipping lines</li>
<li>Tracking shipment updates</li>
<li>Detailed schedule and dates of departure and arrival&nbsp;&nbsp;&nbsp;&nbsp;</li>
</ol>
<h4><strong>Cost Analysis of FOB</strong></h4>
<p>Returning to the conversation that sparked this comparative study and discussion. The auto company described above shipped 200 containers monthly.</p>
<p>Let us take an example. If you are paying your seller 5000 USD per container for a CIF&nbsp;shipment, FOB with Cogoport will reduce it to 4500 USD. This is a result of comparison of rates with various shipping lines, getting the most optimized rates and transparency in the process.</p>
<p>"Only the owner can ensure the finest service," the automobile company's Point of Contact explained, "...and as owner when we chose Cogoport, our control over our shipping rose manyfold." By making Cogoport your shipping partner, you can choose the best shipping agreement along with additional services. If you also wish to make Cogoport a stakeholder in your shipment, <a href="https://cogoport.com/signup" target="_blank" rel="noopener">BOOK NOW</a>!</p>
<p>&zwj;</p>

Free on Board (FOB) with Cogoport for Importer 

FOB with Cogoport: A Guide for Importers

<h4><strong><em>Logistics, Cross-Border Trade and various Government intrusions</em></strong></h4>
<p>A lot of conversation is going around the involvement of the government in the shipping processes. The US government is working on centralizing the process and making provisions to review applications for new alliances for anti-trust issues. The White House released a statement which talked about an agreement between the Department of Justice &amp; Federal Maritime Commission. Simultaneously, industry experts, shipping companies and the public have also started to share their opinions. Regulators from the U.S., the European Union and China determined there was no evidence of anti-competitive behaviour in container shipping. While shipping companies disagree and put the entire blame on COVID-19, a consensus from farmers and shippers does give an idea about the unfair practices and excessively high charges these shipping lines charge. The government intrusion will bring everyone on a<a href="https://www.nytimes.com/2022/03/21/business/economy/inflation-biden-shipping.html?referringSource=articleShare" target="_blank" rel="noopener"> level playing field</a> but the actual effect is still unclear.</p>
<p><strong><em>New Plans in Budget by Indian Government</em></strong></p>
<p>Along the similar lines, the Indian government has announced the &ldquo;Gati Shakti Masterplan&rdquo; which includes various facilities and provisions, like expressways and cargo terminals, which will give a big boost to new warehousing and logistics facilities across the country. Investment and Digitalization are the primary needs in this sector.</p>
<p>Pertaining to all this, the government is making amendments in the process and making their role bigger. Indian Budget also included the <a href="https://www.cogoport.com/blogs/union-budget-2022-2023" target="_blank" rel="noopener">plan</a> for making a Unified Logistics Interface Platform. This is being planned to reduce logistics costs and time, eliminate tedious documentation, and ensure just-in-time management and effective movement of goods. To break the opaque image of the industry, the budget also mentions the need to do procurements through a paperless and end-to-end e-bill <a href="https://www2.deloitte.com/content/dam/Deloitte/in/Documents/tax/in-tax-deloitte-union-budget-2022-detailed-analysis.pdf" target="_blank" rel="noopener">system</a>.</p>
<h4><strong><em>Logistics and its limitations</em></strong></h4>
<p>LogisticsExperts say that the shipping companies have reduced competition by being cooperative amongst themselves and making the market power concentrated which helps them in dictating prices, charging a late fee, and hence leaving no margins for the seller, especially SMEs. According to the UN, the Trade knowledge and execution gap have widened and prevented trade which could have happened from $1.5 trillion to $3.4 trillion <a href="https://www.cogoport.com/blogs/decoding-trade-knowledge-and-execution-gap" target="_blank" rel="noopener">annually</a>. Several opinions by Shipping Companies, Economists, and farmers have been surfaced which blames COVID, High Demand - Low Supply, and shipping Lines respectively. Apart from this issue, there are several other problems that have been ever-present like Non-Digitalization, Non-Transparency, etc.</p>
<p>&zwj;<a href="https://www.cogoport.com/signup" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto"></a></p>
<h4><strong><em>Why are SMEs suffering the most?</em></strong></h4>
<p>These are the issues faced by all the players in the business and SMEs are affected the most. Even before COVID, Bigger Banks &amp; other FSI players have been reluctant to invest time and focus on these smaller companies and accounts. Trade financing and support are always readily available for the big players in the industry and SMEs have less or more expensive options. This makes trade complex, expensive and risky for them. Even worse, many a time the ocean liners do not even wait for the farmers to get their products loaded. As per a 2018 survey, held by OECD SME Ministerial ConferencePlenary Session, 63% of the SMEs identified &ldquo;Finding Business Partners&rdquo; as the top barrier they face in trade. All these practices are only making it more difficult for the small players to survive. A global trade platform would be the only plausible solution to get every player on a <a href="https://www.nytimes.com/2022/03/21/business/economy/inflation-biden-shipping.html?referringSource=articleShare" target="_blank" rel="noopener">level playing field</a>.</p>
<h4><strong><em>The need for a Global Trade Platform </em></strong></h4>
<p>Now while the government and shipping companies' alliance may improve the situation, it is neither an instant solution nor a guaranteed one. This is where Cogoport comes to the rescue! We are also in line with the government about the issues SMEs are facing in shipments.</p>
<p>We cater to all sorts of companies and target specifically SMEs. We do this by educating and demystifying International Trade to SMEs and new entrants with the help of trade insights and advisories. Our users can get better control over their supply chain by planning shipments ahead of time and having better real-time visibility in their ongoing shipments. <a href="https://www.cogoport.com/rewards/signin" target="_blank" rel="noopener">Our Trade Platform</a> is offering to ease the overall hassle in import-export. We aim this by starting to bring transparency to this opaque industry. The entire ecosystem is connected by our platform and a team of experts who manage shipments from start to finish for our customers and channel partners, providing the best user experience to both the demand and supply sides while maintaining transparency and confidence. Our newly launched scheme Ship Now &amp; Pay Later, a Data &amp; Service Integration, helps to lower the risk and enables the SMEs to grow cross-border trade and scale their business.</p>
<p>All that the government is doing is going to benefit and make the otherwise complicated process of Logistics approachable for all and sustainable to the environment. Additionally, to ensure a hassle-free experience such Global Trade Platforms also prove to be a great alternative. <br><br>Facing Challenges in Shipping? Try Cogoport. You can drop your enquires at team.cogoport@mail.cogoport.com</p>
<p>&zwj;</p>

Cogoport comes to rescue the Logistics Industry

Cogoport Comes to the Rescue: Solving Logistics Challenges for SMEs

<p>At a time when exporters are facing peak shipping costs, the logistics industry appears to have taken a leaf out of the retail world’s Buy Now Pay Later (BNPL) mechanism. BNPL isa point-of-sale (POS) financing option which is growing at a double digit rate, enabling customers to buy the products who otherwise could not have afforded though they were interested in buying. </p><p>This zero-interest short-term financing option empowers customers to make purchases now and clear those bills later in a predefined timeframe, subject to some conditions for the customer. In similar fashion, Ship Now Pay Later (SNPL) has emerged in the shipping industry. </p><p>SNPL could emerge as a major relief for shippers considering the exorbitantly high ocean carrier prices ruling the industry amid Coronavirus pandemic and container shortage. Ship Now Pay Later mode temporarily frees exporters from paying all the shipment costs at once, giving them a leeway to clear those bills at a later date which is comfortable to all the stakeholders. </p><p>InIndia, Cogoport, a six-year-old new age company is powering small and medium enterprises (SMEs) to go global, including enabling firms to import, export and make their trade easy by blazing a trail in SNPL space with its Pay Later offering. </p><p>‍<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-2.png" width="auto" style="width: auto; height: auto;"></a></p><h2><strong>Cogoport’s Pay Later, India’s pioneering SNPL offering</strong></h2><p>Cogoport’s Pay Later is an easy route for SMEs and interested firms to procure instant credit through a completely digital process, where you can effortlessly track purchases, repayments and transactions history on a simplified dashboard. </p><p>All authorized parties can book shipments via Cogoport for their export consignments and keep a track of their payment history, credit limit related information and other important details on one single dashboard provided by Cogoport. Cogoport brought forth Pay Later in collaboration with its third party lending partners which takes one business day to turnaround an application. </p><h3><strong>Easy sign up process for Pay Later, no need of credit card info</strong></h3><p>It is an easy one time set up process which lasts about half an hour without the requirement of furnishing credit card details. On completing the setup, an approved SMEs or firm can start availing Cogoport’s SNPL option Pay Later at the time of booking a shipment via Cogoport. </p><h3><strong>Pay Later’s key benefits</strong></h3><ul><li>Cogoport’s Pay Later is an excellent source of alternative funding for SMEs and firms at a time when there is reduced use of credit from traditional banking sources. </li><li>Offers lower implied cost of funding for fiancé raised against a stronger buyer and credit rating. </li><li>Pay Later offers working capital optimization and better cashflow forecasting along with flexibility. </li><li>It optimizes and shortens cash conversion cycle, giving flexibility for the SME or business to easily pay for its suppliers, workers and employees. Short cash conversion cycle creates financial stretch SMEs.</li></ul><h3><strong>Basic documentation to set up PayLater</strong></h3><p>At the time of registration, Cogoport’s Pay Later SNPL programme requires the interested company’s Permanent Account Number (PAN), Aadhaar, GST certificate, MOA/AOA and a few more financial details, including the company director’s PAN, Aadhaar number and photograph. </p><h3><strong>Robust information security</strong></h3><p>All information, including financial details shared with Cogoport are safe and secure considering the company adhering to globally recognised and certified data security standards with the strongest encryption, including complying with data security standards mandated by the Reserve Bank of India (RBI), India’s central bank.</p><p><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 1.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Pay Later offers generous 90-day repayment credit cycle</strong></h3><p>Unlike most international SNPL programmes which offer 15-day, 30-day and 45-day credit cycles, Cogoport’s Pay Later offers a generous repayment period of up to 90days for an invoice raised against the approved limit depending on eligibility.</p><h2><strong>Budding SNPL international landscape</strong></h2><p>Ship now pay later is still not as widely adopted a financial solution as BNPL for exporters but some players are already functioning in this arena who include Hapag– Lloyd, PayCargo Capital and TranMazon. </p><p>Hapag– Lloyd Canada is offering an SNPL option through PayCargo Line of Credit and credit card option for easy payment. Under this option, the shipping line’s recognition of an exporter’s payment will happen faster and the subsequent release of his cargo will also happen faster, injecting speed and efficiency in the processes and removing hidden costs or personal credit checks.</p><p>TheGerman carrier has teamed up with Paycargo Capital, a fintech company serving transportation and logistics businesses with its solutions to rollout SNPL services. Paycargo is an online payment platform which enables shipping and cargo industry customers to move their funds and payments information to their freight supplier and release cargo at a faster pace, including having the ability to use credit cards as an option to pay. </p><h3>Process of PayCargo credit solution through Hapag – Lloyd Canada</h3><p>It is a five step procedure starting with:</p><ul><li>First qualify as a Paycargo user</li><li>Apply for credit</li><li>Get approved within 24 hours</li><li>Execute documents through DocuSign</li><li>Start using PayCargo Credit</li></ul><p>For qualifying clients, the company can arrange up to $2.5 million for utilization in its system, even as clients will pay only for the amount of funds they use at the rate of 1 percent for a 15-day credit. There are also 30-day and 45-day terms available. </p><p>This arrangement offers the flexibility of using credit cards as a means to pay,Visa or Mastercard. Ultimately, the client or exporter will stand to raise efficiency and save resources in the form of eliminating cumbersome procedures and paper trail of manual check payment. </p><p>By freeing cash away from freight charges temporarily through SNPL, exporters can make decisions on investments in new products, expansion, hiring and others. </p><p>Paycargo Capital is a new age fintech company focusing on transportation and logistics industry by facilitating Ship Now Pay Later services. Though it does not explicitly brand its services as SNPL, they actually fall in that category. Its credit solutions help exporters to save time, make payable processes easy and smooth with excellent reporting capabilities, notifications and automatic updates. </p><p>However, it should be clarified that Paycargo is not a lender but only a fintech company which has devised simpler ways to review and take decisions on funding solutions for freight forwarders, customs house brokers and other non-vessel owning common carrier (NVOCC). </p><p>Marries credit seekers &amp; providers in the logistics realm </p><p>By virtue of not being a lender and a mere fintech company, it plays the role of bringing together and marrying businesses in need of credit and logistics providers such as ship, aircraft and truck players who can provide credit. </p><p>Exporter scan avail credit between <a href="https://paycargocap.com/about-us/" target="_blank">$50,000 to $50,00,000</a> in the form of the three credit cycles of 15-day, 30-day or 45-day to pay their ocean freight, air freight, cross border freight, warehouse fees, customs fees and other transport related costs. </p><p>Businesses can apply for line of credit to utilize it within the company’s system for paying transportation and related vendors. Using line of credit enables exporters to get their <a href="https://paycargocap.com/about-us/" target="_blank">cargo released as soon as possible</a>, get a credit decision without obligation and also not affect one’s credit score. </p><p>It in turn provides this credit for businesses to book cargo on ships, aircraft and trucks, and at the same time pays the credit providers (logistics players)immediately to release the cargo as soon as possible</p><h3>Mode of Paycargo Capital functioning</h3><p>The fintech company offers 15-day, 30-day and 45-day credit cycles. Let’s take the case of 30-day credit cycle to understand how it works. <a href="https://paycargocap.com/how-it-works/" target="_blank">On day one</a>, exporter makes shipment payment to the logistics provider through Paycargo system. The fintech company immediately informs the logistics players so that the cargo can be quickly and safely released. </p><p>On day two, the vendor gets the payment from PayCargo System and on day 26, the payer or exporter will receive an alert that the payment and related fees will be processed from his bank account. On day 29, Paycargo deducts the right amount of funds from the bank account of the payer and restores his available credit balance to again avail shipments. </p><p>Advantages:</p><ul><li>Completes an exporter’s credit review within 24 hours.</li><li>Credit comes handy to manage working capital corresponding to the size of a business, specially designed to power maritime and air cargo payments.</li><li>Minimum credit starts from $50,000 while larger companies can also avail credit upwards of $5,00,000.</li><li>Credit cost is determined by the credit review and the amount requested for.</li><li>Exporters can pay any vendor (logistics provider) available through the fintech company.</li></ul><p>‍</p><h2><strong>TranMazon</strong></h2><p>TranMazon is a North American third-party logistics (3PL) company which also offers Ship Now Pay Later services. Similar to otherSNPL players, TranMazon, a delivery partner to e – commerce powerhouse Amazon offers SNPL services under 15-day, 30-day and 45-day credit cycles. </p><p>Unlike other players, this American company does not charge any fee on the credit which ranges from $1,000 - $1,00,000 but requires the dues to be cleared as per the plan agreed to. It offers a line of credit after reviewing the creditworthiness of an applicant, including raising it based on the payment history. </p><p>According to the logistics company, its SNPL services will help businesses to free cashflows and open a line of credit to pay based on usage. It offers 30-day credit cycle known as Net 30. Net refers to the number of days following the SNPL delivery, after which the business or exporter should clear his dues in full. If a shipment service was delivered on July 1st and the invoice says Net30, then the client has to clear his bill by July 30. </p><p>In conclusion, SNPL option currently looks to have been widely embraced by air cargo operators than shipping lines. In India, Cogoport is doing pioneering work to popularize SNPL financing option, especially aimed at SMEs and smaller exporters who lack the financial muscle of bigger enterprises. With maritime players like Hapag – Lloyd Canada offering the shipping industry’s equivalent of BNPL through SNPL, ocean freight players are taking baby steps into this space which looks poised for greater penetration in the future.</p><p> <br></p>

Ship Now Pay Later financing option now available

Ship Now Pay Later: Flexible Freight Financing for Exporters & SMEs

<h2><strong>Asia</strong></h2>
<h3><strong><em>New service between China &amp; India&rsquo;s east coast by a consortium of three ocean carriers <br></em></strong></h3>
<ul>
<li>A consortium of three ocean carriers, Regional Container Lines (RCL), Pacific International Lines (PIL) and Inter Asia Line(IAL), have launched a new service between China and India&rsquo;s east coast, <a href="https://www.seatrade-maritime.com/containers/rcl-pil-ial-launching-china-india-east-coast-service" target="_blank" rel="noopener">Chennai &amp; Visakhapatnam</a>, which will commence from April 22.</li>
</ul>
<h3><strong><em>MOL begins promoting used ship equipment sale from Turkey&rsquo;s demolition yards<br></em></strong></h3>
<ul>
<li>Japanese Mitsui O. S. K. Lines Ltd (MOL) has embarked on an endeavour to promote <a href="https://www.mol.co.jp/en/pr/2022/22044.html#:~:text=MOL%20Turkey%20will%20promote%20recycling,%2Dborder%20e%2Dcommerce%20website." target="_blank" rel="noopener">recycling and reducing waste</a> emerging from used ship equipment from demolition yards in Turkey. It has launched a cross border e&ndash;commerce site to sell them to customers across the world.</li>
</ul>
<h3><em>Wan Hai orders five 13,200 boxships from HHI</em></h3>
<ul>
<li>Taiwanese shipping line Wan Hai has ordered <a href="https://www.seatrade-maritime.com/newbuilding/wan-hai-orders-five-13200-teu-boxships-hhi" target="_blank" rel="noopener">five 13,200 TEU capacity boxships</a> from SouthKorea&rsquo;s Hyundai Heavy Industries (HHI) at a cost of $550 million.</li>
</ul>
<h2><strong>Americas</strong></h2>
<h3><em>World Shipping Council (WSC) says US Ocean Shipping Reform Act, 2022 does not address the root cause </em></h3>
<ul>
<li>WSC, counting shipping industry&rsquo;s heavyweights such as MSC, Maersk, CMA CGM, Hapag - Lloyd and others as its members has noted that the new Ocean Shipping Reform Act of 2022 does not address the root cause of ports congestion in the United States of America (USA).</li>
</ul>
<h3><em>TIACA launches BlueSky program to evaluate air cargo industry&rsquo;s progress towards sustainability</em></h3>
<ul>
<li>The International Air Cargo Association(TIACA) has launched <a href="https://tiaca.org/bluesky-program/" target="_blank" rel="noopener">BlueSky</a> program, which is an industry specific tool aimed at recognising and measuring members&rsquo; progress towards sustainability.</li>
<li>BlueSky will validate and verify to track progress in sustainability journey, including benchmarking against peers and also quickening the industry&rsquo;s metamorphosis.</li>
</ul>
<h2><strong>Europe</strong></h2>
<h3><em>IMO&rsquo;s legal committee approves circular on guidance for two seas </em></h3>
<ul>
<li>The London-based International Maritime Organization (IMO) has <a href="https://www.imo.org/en/MediaCentre/Pages/WhatsNew-1700.aspx" target="_blank" rel="noopener">approved a circular on guidance</a> on the impact of the situation in Azov Sea and Black Sea on insurance or other financial security certificates. &nbsp;</li>
</ul>
<h3><em>Global shipping lines rake in more than $110 billion operating profit in 2021</em></h3>
<ul>
<li>According to Sea Intelligence, a leading provider of research and analysis and data and advisory services to the global supply chain industry, global shipping lines raked in an astounding <a href="https://www.sea-intelligence.com/press-room/130-usd-110bn-carrier-ebit-in-2021-so-far" target="_blank" rel="noopener">operating profit of over $110 billion</a> in 2021.</li>
<li>For comparison, the decadal operating profit of the industry from 2010 to 2020 amounted to just $37.5 billion. In just one single year, 2021, the operating profit of shipping lines tripled.</li>
</ul>
<h2><strong>Middle East &amp; Africa</strong></h2>
<h3><em>FFFAI &amp; NAFL sign pact for mutual benefit and cooperation</em></h3>
<ul>
<li>The freight forwarders&rsquo; association in India (FFFAI) and United Arab Emirates (UAE) based national association of freight&amp; logistics (NAFL) have signed an <a href="https://eximin.net/news.aspx" target="_blank" rel="noopener">agreement for mutual benefit and cooperation</a>.</li>
</ul>
<h3><em>Maersk &amp; Egypt to explore green fuel production</em></h3>
<ul>
<li>Danish shipping major Maersk and Egyptian authorities have inked a pact to explore the setting up of large green fuel production facilities in the North African country.</li>
<li>General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt forInvestment and Development (TSFE) have forged the partnership with Maersk.</li>
</ul>
<h3><em>Amid port congestions, ZIM updates service structure</em></h3>
<ul>
<li>Aimed at securing highest possible service reliability amid port congestions, Israeli shipping heavyweight ZIM Integrated Shipping Service Ltd (ZIM) has <a href="https://investors.zim.com/news/news-details/2022/ZIMs-Asia--Pacific-North-West-and-Asia--East-Med-Service-Structure-Update/default.aspx" target="_blank" rel="noopener">updated</a> its previously announced new Asia &ndash; Pacific North-West and Asia East Mediterranean services.</li>
</ul>
<h3><em>ZIM announces new chartering transaction for six new vessels</em></h3>
<ul>
<li>Israeli shipping line ZIM entered into a <a href="https://investors.zim.com/news/news-details/2022/ZIM-Announces-New-Chartering-Transaction-for-Six-5500-TEU-Wide-Beam-Newbuild-Vessels/default.aspx" target="_blank" rel="noopener">new charter transaction agreement</a> with a group of investors for six 5,500 TEU wide beam new build vessels at a charter hire consideration of $600 million for a period of seven years.</li>
<li>These vessels will be built by Korean shipyard HJ Shipbuilding &amp; Construction to be delivered between May 2023 andFebruary 2024.</li>
</ul>
<p>&zwj;<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" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto"></a></p>
<h2><strong>India</strong></h2>
<h3><em>Flagship Sagarmala completes seven years</em></h3>
<ul>
<li>India&rsquo;s flagship Sagarmala programme which enabled reducing port turnaround time by 40 percent has <a href="https://www.livemint.com/news/india/sagarmala-completes-7-yrs-helps-reduce-port-turnaround-time-by-40pc-11648213481774.html" target="_blank" rel="noopener">completed seven years</a> recently. Sagarmala powered Indian ports to become more efficient, slashed container turnaround time and ushered in more benefits to the ports.</li>
<li>From 44.70 hours in 2013 &ndash; 14, containers turnaround time fell to 26.58 hours.</li>
</ul>
<h3><em>Mechanisation investments slash container turnaround time </em></h3>
<ul>
<li>Sarbananda Sonowal, Minister for Ports, Shipping and Waterways noted that container turnaround time in India got slashed to <a href="https://www.thehindubusinessline.com/economy/logistics/turnaround-time-in-indian-ports-has-improved-to-265-hrs-sarbananda-sonowal/article65259496.ece" target="_blank" rel="noopener">25.6 hours from 45-odd hours</a> in 2013 &ndash; 14 due to investments in mechanisation.</li>
</ul>
<h3><em>CMA CGM begins block train service from Mangalore Port to Nhava Sheva</em></h3>
<ul>
<li>Aimed at catering to shippers preferring direct mainline options offered by Nhava Sheva, French shipping line CMA CGM has started a <a href="https://theloadstar.com/rail-steams-in-to-rescue-south-indias-shippers-as-haulage-remains-scarce/" target="_blank" rel="noopener">block train service</a> from New Mangalore Port (NMPT) to Nhava Sheva in association with the Container Corporation of India (CONCOR).</li>
</ul>
<h3><em>ICRA reduces Indian economic growth owing to rising commodities prices</em></h3>
<ul>
<li>Ratings agency ICRA has <a href="https://www.livemint.com/economy/icra-slashes-india-s-fy23-growth-forecast-to-72-11648550775727.html" target="_blank" rel="noopener">reduced India&rsquo;s economic growth</a> forecast from 8 percent to 7.2 percent for the financial year 2022 &ndash; 23 due to rising fuel and commodities prices amid Russia &ndash; Ukraine war.</li>
</ul>
<h3><em> &lsquo;Indian businesses&rsquo; highly optimistic to move freight through train&rsquo;</em></h3>
<ul>
<li>According to data and business analytics company Dun &amp; Bradstreet&rsquo;s survey Railway Freight Activity Optimism Index (RFAOI), Indian businesses are <a href="https://mediabulletins.com/business/indian-businesses-highly-optimistic-about-transporting-freight-via-rail-in-q1-2022-compared-to-last-year-dun-bradstreet-study/" target="_blank" rel="noopener">more optimistic to move freight through railways</a> in Q1, 2022 than last year.</li>
</ul>
<h3><em>JNPA handles 5.68 million TEU in 2021&ndash; 22, highest ever</em>&zwj;</h3>
<ul>
<li>Jawaharlal Nehru Port Authority (JNPA) has handled 5.68 million twenty-foot equivalent units (TEU), highest, in fiscal 2021 &ndash; 22, witnessing a growth of 21.5 percent.</li>
</ul>
<h3><em>Startup Wiz Freight raises funds from global investors</em>&zwj;</h3>
<ul>
<li>Cross-border supply chain startup Wiz Freight has <a href="https://www.business-standard.com/article/companies/wiz-freight-raises-rs-275-cr-in-series-a-round-from-tiger-global-axilor-122033100675_1.html" target="_blank" rel="noopener">raised investments worth Rs 275 crore</a> in the form of both equity and debt from Tiger Global, along with participation from Alteria Capital, Stride Ventures, Arali Ventures, Foundamental and Axilor Ventures.</li>
</ul>
<h3><em>Honda enters marine outboard business in India with four-stroke engines </em>&zwj;</h3>
<ul>
<li>Eyeing India&rsquo;s long coastline and market potential, HondaIndia Power Products has <a href="https://timesofindia.indiatimes.com/auto/news/honda-india-power-products-forays-into-marine-outboard-business/articleshow/90541427.cms" target="_blank" rel="noopener">entered into the marine outboard business</a> with its four-stroke engines. Honda aims to cater to commercial fishing and taxi boat services, maritime border security players and boat operators among others.</li>
</ul>
<h3><em>Indian government released a list of waterways feasible for cargo and passenger movement</em></h3>
<ul>
<li>The Ministry of Ports, Shipping and Waterways has released a list of 26 national waterways (NWs) feasible for cargo and passenger movement.</li>
</ul>
<h3><em>European Union is the second major destination for Indian organic food products</em></h3>
<ul>
<li>According to the Ministry of Commerce &amp;Industry, the European Union (EU) is the second biggest destination for organic food products from India. Exports to the EU under National Programme for Organic Production (NPOP) accounted for $356 million.</li>
</ul>

Trade Update Review - April 5th, 2022

Global Trade Update April 2022: Key Developments & Market Trends

<p>India has close to63 million MSMEs. Together these firms employ close to 111 million people.MSMEs are also responsible for 50% of India’s exports and contribute about 29%to India’s GDP. The sector holds immense potential to propel economic growth, generate employment and boost India’s international trade. Characterised by low technology adoption and limited brand building, MSMEs have historically faced several obstacles in living up to their potential. These include challenges around labor, ease of doing business, lack of access to collateral and finance.</p><h2><strong>SMEs face huge challenges in accessing capital</strong></h2><p>Among these, lack of access to capital is one the most significant challenges for small and medium sized companies. &nbsp;</p><p>‍<br>MSMEs require access to working capital to ensure smooth day to day operations, to build resilience against future risks and to ensure long-term investments for growth and expansion. It is therefore imperative for MSMEs to have a cash reserve as well as receive timely payments. However, delays in payment cycles and resulting cash crunches are a regular feature of day-to-day operations.This is especially true for MSMEs that are part of supply chains for large companies. MSMEs lack the bargaining power to demand better payment cycles and often bear the brunt of delayed payments. In fact, estimates suggest that MSMEs are owed an approximately $ 200 billion at a point of time. This number only accounts for working capital deficit faced by registered MSMEs in the country(accounting just 13% of the existing small businesses).<br>Imagine then the magnitude of deficit for the entire sector. Lack of capital not only results in operational difficulties, but it could also mean having turn away lucrative orders that offer payment only after production is completed</p><p>One possible solution is to seek access to credit. However, access to formal finance, comes with its own set of challenges. Not only is there information asymmetry regarding available financing, but many SMEs also lack the expertise to navigate formal financial solutions or do not have sufficient documentation to qualify for the right solutions. Moreover, working capital loans are often offered at high interest rates and are not a viable option for micro and small enterprises. <a href="https://economictimes.indiatimes.com/small-biz/sme-sector/how-can-indian-msmes-grow-to-compete-in-the-world/articleshow/84965039.cms?from=mdr" target="_blank">According to Jiten Arora, Venture Lead of Solv &amp; Member at SC Ventures</a>. “India has close to a $300-billion funding gap when it comes to micro SMEs. Getting financial inclusion is very important for this.” </p><h2><strong>Solutions to improve cash flow for SMEs</strong></h2><p>Solutions that ease demands on cash strapped MSMEs are important not just for easing immediate financial demands, but also for allowing MSMEs the leeway to direct cash towards incremental improvements in operations, allowing them to scale up.Merchant Cash Advances are one such option that has become available for retailMSMEs in the recent years. <br>These are essentially upfront cash advances to businesses against a portion of their future sales through debit or credit cards. </p><h2><strong>The rise of buy now pay later models </strong></h2><p> Another solution that is rapidly gaining ground is the buy now pay later facility. Retail consumers have been able to avail this facility for the last several years –think Amazon Pay Later, LazyPay, Simpl. This option allows you to pay for products purchased at a later date, either as a lumpsum or in easy instalments. In fact, buy now pay later (or point of sale financing) was the only unsecured source of lending that witnessed double digit growth during the pandemic. However, such financing has typically been limited to lower ticket values. Recently SOLV, an India B2B marketplace has extended the buy now pay later facility to MSME buyers and sellers on its platform. This allows small businesses that are already reeling under the impact of the COVID-19 related slowdown some financial respite as they can service their requirements even if they don’t have immediate access to funds.</p><p><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-2.png" width="auto" style="width: auto; height: auto;"></a></p><p>Most buy now pay later services work through partnerships with new-age financing companies and non-banking financial institutions (NBFCs). These intermediaries provide easy repayment options to buyers while paying merchants / sellers upfront. There are several benefits for the financial intermediary - this is a way of increasing the amount of loans disbursed while also gathering data to evaluate a customer’s credit behavior without investing a lot of resources. &nbsp;According to Alok Mittal, CEO Indifi Technologies, a digital business loan provider, “Not only will this [BPNL]accelerate the recovery process of affected SMEs but will also help us understand their underlying transactions and accordingly formalize credit for this critical part of the Indian business ecosystem.” </p><h2><strong>Ship Now Pay Later</strong></h2><p>The buy now pay later model has also found resonance with service providers. For instance, german shipping company, Hapag Llyod, provides a facility where customers can choose to ship goods while availing a line of credit. In Canada, this is done in partnership with PayCargo a payment solutions provider. Consumers can opt for ocean and sea freight by availing PayCargo’s service which makes up to $2.5million in credit available to them at an interest of 1% for 15 days. Customers can also opt for longer repayment cycles of 30 and 45 days. </p><p>The availability of a pay later option takes on additional significance if one considers the recent unprecedented rise in shipping costs. Exporters have seen a double digit increase in freight costs over the last two years. In fact, freight costs increased by as much as 15% in January 2022 because of port congestions, and bottlenecks in USA, Europe and China. Given this unforeseen rise in the cost of doing business, having the ability to pay after 15, 30, or 45 days can provide a much-needed lifeline for struggling MSMEs.</p><p> <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></p><h2><strong>Cogoport’s Pioneering Solution </strong> </h2><p>In a ‘first of its kind’ facility in India, Cogoport has introduced a Ship Now Pay Later (SNPL) option for SMEs to obtain instant digital access to credit for booking shipments. MSMEs need to undergo a one-time approval process to avail the facility. At the time of registration, customers are required to provide details like the company’sPermanent Account Number (PAN), Aadhaar, GST certificate, MOA/AOA and a few additional financial details. </p><p>Cogoport uses its proprietary Cogo score benchmarking technique to evaluate the credit worthiness of the consumer based on GST, SIBIL and its own transactional data. Cogo score leverages machine learning to assess historic values (credit, debt and repayment history)as a predictor of risk. &nbsp;This reduces the burden on Cogoport’s partners to prove their creditworthiness. Moreover, customers can opt for repayments over 30, 60 or 90 days, which is much longer than standard BNPL cycles. Since SMEs don’t have to pay a large sum at once, they can improve working capital optimization and have better cash conversion cycles. </p><p>It is essential that the business ecosystem adopt more such solutions to ease the challenges faced byMSME, thereby allowing them to turn into economic powerhouses that can helpIndia achieve its vision of becoming a $5 trillion economy by 2026.</p>

Ship Now Pay Later, salve for cash-strapped SMEs?

Ship Now, Pay Later: Financing Solutions for Cash-Strapped SMEs

<p>Unlike services exports which are mostly intangible in nature and cross continents as bits and bytes through the <a href="https://www.submarinecablemap.com/">submarine internet cables</a>, merchandise exports demand safe packaging for goods to be hauled across the oceans to remain intact and acceptable to the ultimate foreign buyer. Different types of goods need varied methods of export packaging as not all goods and commodities meant for export are the same in shape, size and volume. </p><p>Packaging also plays a key role in export success as it helps in the safe keep of products, retaining them in perfect condition until reaching the destination and also uniquely positioning and differentiating them. Several geographies have their stringent requirements for packaging material to meet. For instance, many countries bar packaging material which may bear invasive species. </p><p>Amid this backdrop, there are established global bodies to guide small and medium enterprises (SMEs) and exporters on packaging, whose aim is to enable these entities in developing and transition economies to emerge more competitive and get linked to the international markets for investments and trade, thereby raising the living standards and creating job opportunities.</p><p><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></p><p>The <a href="https://intracen.org/about-us">International Trade Centre</a> (ITC), set up in 1964 is a joint agency of the World Trade Organization (WTO)and the United Nations (UN), which offers information, advisory services, training, networks and projects in export packaging.</p><p>The joint UN and WTO development agency’s export packaging services include one of the most comprehensive <a href="https://intracen.org/our-work/topics/business-performance/sustainable-packaging">knowledge databases</a> on export packaging available for developing countries.ITC’s Pack it is a modular information system which comprises of 40 modules of comprehensive coverage of packaging technology, specific product packaging and regulations. Likewise, ITC also publishes a widely renown multilingual <a href="https://intracen.org/our-work/topics/business-performance/sustainable-packaging">glossary of packaging terms</a> and <a href="https://intracen.org/publications?taxid=2262">packaging publications</a>. </p><p>Besides ITC, World Packaging Organisation (WPO) and some commercial players such as NEFAB are also operating in this space. ITC also works with as many as 100 leading packaging institutions, including theInternational Association of Packaging Research Institutes. <strong>‍</strong></p><h2><strong>Container convenience</strong></h2><p>In modern day shipping, containers and pallets have become a standard because they offer the best possible protections to merchandise. Obviating the possibilities of stealing goods and tampering with them is enabled by containers and their sealing, including shrink wrapping and secure straps. </p><h3><strong>Export packaging differs </strong></h3><p>The level of export packaging varies from the type of product, mode of transportation and available facilities at the destination port or airport.Generally, for shipment through vessels, extensive packaging is needed to shield the products from moisture as the journeys are long duration with exposure to humid environment. <br>Likewise, there is the possibility of multiple handling of export consignments when shipped via vessels such as from the exporter to the container terminal, terminal to port, port to vessel and all this handling sequence in reverse order at the destination.</p><p><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-2.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Many forces act on shipments</strong></h3><p>Export shipments have to endure the many forces of vibrations, drops, moisture, climatic stresses, stacking pressures and also compression, cutting and bending. Various kinds of blocking materials are used to immobilize products, offer right cushioning and fill the voids of empty spaces around the packed goods for safety. It is a known fact that modern vessels stack thousands of containers one on top of the other, building towers of containers. <br>Export packaging also calls for the knowledge of selecting the right design, packaging materials, packaging for all modes of transportation and markets. Packaging materials must also be tested to validate their performance. </p><h2><strong>Dangerous goods</strong></h2><p>Several ways in which costs are affected is through packing and handling, warehousing and transportation, administration, environmental concerns, product protection and attention to safety and compliance issues with respect to dangerous goods. </p><p>It is crucial for dangerous goods shippers to make the right packaging to protect them. Different categories of hazardous good include:&nbsp;&nbsp;</p><ul><li>Class 1: Explosives</li><li>Class 2: Gases</li><li>Class 3: Flammable liquids</li><li>Class 4: Flammable solids which can combust spontaneously and substances which emit flammable gases when they come in contact with water</li><li>Class 5: Organic peroxides and oxidizing substances</li><li>Class 6: Infectious and toxic substances</li><li>Class 7: Radioactive materials</li><li>Class 8: Corrosives</li><li>Class 9: Miscellaneous dangerous goods. </li></ul><h3><strong>Packaging dangerous goods &nbsp;</strong></h3><p>There are three groups of methods employed in safely <a href="https://www.nefab.com/en/news-insights/2016/export-packaging-design/">packaging hazardous goods</a>.<br><br>Packaging Group I (X): This method of packaging is the sturdiest packaging employed for the most dangerous goods such as cyanide or infectious viruses. This packaging method has to pass the drop test of 1.8metres. <br>Packaging Group II (Y): This method of packaging is used for air freight shipping of goods like batteries and explosives. It has to pass a drop test of 1.2 metres. <br>Packaging Group III (Z): This method of packaging is used for flammable fluids and batteries which are transported by trucks. It has to pass a drop test of 0.8 metres. </p><p>‍<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px"></p><h2><strong>International testing standards in packaging</strong></h2><p>American Society for Testing and Materials (ASTM),International Organization for Standardization (ISO) and International SafeTransit Association (ISTA) are some of the most commonly implemented standards aimed at ensuring that the package designs are safe and adhere to the industry standards. </p><h3><strong>Country specific rules</strong></h3><p>Many countries have packaging standards specific to them which require the exporters to adhere to. It is the duty of exporters to stay informed and follow the latest packaging standards specific to a country.Non-compliance can lead to severe penalties, risk of entire cargo getting sequestered and delayed, including the end customer being subjected to expensive litigation and suffering disrepute, especially when exporting hazardous goods.Following export packaging rules in letter and spirit will help in clearing all the inspections without issues on arriving at the export destination. </p><h3><strong>Air shipments</strong></h3><p>Unlike export shipments through the oceans on large vessels, export packaging via air transit requires a lesser degree of packaging as the transit times are shorter and air cargo is mostly lighter when compared to mainstream shipping on the high seas. However, effective moisture protection is still needed as temperature and elevation changes can lead to condensation. </p><h3><strong>A few popular packaging materials</strong></h3><p>Plywood boxes and shipping crates, corrugated packaging and wood packaging are some popular packaging materials used in export packaging. Offering easy assembling options, wood packaging is great for product protection. It enables multiple opening and closing opportunities. </p><p>Corrugated packaging is one of the most popular packaging materials owing to its low cost. It is easy to customize to the shipper’s need, lightweight and gives good product protection. Plywood boxes are widely used in export packaging as they enable air to pass through, limiting exposure to moisture </p><p>Let us explore a bit more about export packaging, taking the most important points into consideration:</p><ul><li>Information and labeling on the export packages has to be accurate and explicitly clear. </li><li>Export consignments must comply with local rules at the destination. &nbsp;For example, some countries prohibit certain packaging material like straw filling. </li><li>Some countries impose restrictions on wood packaging, including requiring wood packaging to be marked and accompanied by a certificate. </li><li>Some export markets demand minimum weight and volume of packaging. For example, heavy packaging users have to register with NorthernIreland Environment Agency (NIEA) to become accredited as exporters in theUnited Kingdom. Many export markets have strict rules on packaging waste and collection. Germany’s ‘green dot system’ is a case in point. </li><li>Several export markets mandate easily recyclable packaging material with minimal environmental damage, including strict packaging waste and collection rules. </li><li>There are wood packaging standards aimed at avoiding the spread of forest pests and timber diseases. In some instances, an import license is also required when wood is employed in packaging. </li><li>Australia prohibits the import of non-treated coniferous wood packaging materials (pallets) from select countries to avoid the entry of non-native or invasive species. </li><li>Hazardous goods must be safely packed and clearly labeled.</li><li>Poor packaging can adversely affect transport insurance if it is proved so. </li><li>To avoid disputes in the event of goods getting damaged during shipping, contracts must consider incorporating packaging specifications with buyers. </li><li>Cost savings on packaging using sub-standard materials is never a good idea. Packaging options such as cartons grouped on pallets and later loading into containers has become a mainstay.</li><li>It is better to rope in a surveyor for specific packaging guidance in case of fragile products shippers’ facing regular complaints of in-transit breakage. </li></ul><p>To conclude, export packaging is a make-or-break part of export operations, requiring shippers to adhere to country specific rules depending on the type of commodity or merchandise being exported. There is enough guidance for exporters through global bodies to successfully export package their products and also weather the storms of many forces which can acton merchandise at every stage of export transactions.</p>

Export packaging: Integral Part of Shipping

Export Packaging Guide: Best Practices for Safe International Shipping

<h2><strong>Asia</strong></h2>
<h3><strong><em>MOL completes 100 percent acquisition of Utoc Corporation<br></em></strong></h3>
<ul>
<li>MOL on Wednesday completed 100 percent <a href="https://www.mol.co.jp/en/pr/2022/22025.html" target="_blank" rel="noopener">acquisition of Utoc</a> Corporation.</li>
</ul>
<h3><strong><em>BSI awards another ISO certification to Bahri<br></em></strong></h3>
<ul>
<li>The British Standards Institution (BSI) <a href="https://www.bahri.sa/en/news-insights/news-insight/2022/bahri-receives-iso-22301-2019-certification-for-exceptional-standards-of-business-continuity/" target="_blank" rel="noopener">awarded ISO 22301:2019</a> certification toBahri, a logistics and transportation heavyweight, for complying with the latest standards of Business Continuity Management System (BCMS) and establishing excellent business continuity strategies.</li>
</ul>
<h2><strong>Americas</strong></h2>
<h3><em>Oracle introduces new logistics capabilities</em></h3>
<ul>
<li>The Global software behemoth Oracle has introduced <a href="https://www.prnewswire.com/news-releases/oracle-introduces-new-logistics-capabilities-to-help-customers-increase-supply-chain-efficiency-and-value-301481110.html" target="_blank" rel="noopener">new logistics management capabilities</a>, Oracle Fusion Cloud Supply Chain &amp; Manufacturing(SCM), aimed at bolstering the efficiency and value of organisations’ global supply chains.</li>
</ul>
<h2><strong>Europe</strong></h2>
<h3><em>DB Schenker &amp; CMA CGM team up to offer regular emission-free ocean freight</em></h3>
<ul>
<li>Taking a major step towards decarbonized ocean freight, global logistics and transportation services major DB Schenker has teamed up with French shipping powerhouse CMA CGM to offer green container transport.</li>
<li>DB Schenker converted all its less than container load (LCL) volumes with CMA CGM into carbon free production by signing a purchase contract of over 2,500 tons of biofuel with the carrier.</li>
</ul>
<h3><em>IMO secretary general calls for the safety of seafarers amid Ukraine – Russia war</em></h3>
<ul>
<li>International Maritime Organization (IMO) secretary general Kitack Lim called for the <a href="https://www.imo.org/en/MediaCentre/SecretaryGeneral/Pages/Ukraine.aspx" target="_blank" rel="noopener">safety of seafarers</a> amid ragingUkraine – Russia war, highlighting that maritime shipping and seafarers cannot be collateral victims of larger military and political crises.</li>
</ul>
<h3><em>Russia – Ukraine crisis increasing global shipping costs</em></h3>
<ul>
<li>Following Covid-induced inflated shipping costs, the global shipping landscape is bracing for another round of freight rate hikes in the light of Russia – Ukraine war.</li>
</ul>
<h3><em>XSI Public Indices highlights long term ocean freight rates on the rise again</em></h3>
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<ul>
<li>Oslo-based Xeneta Shipping Index (XSI) PublicIndices highlighted that <a href="https://www.xeneta.com/news/container-rates-alert-long-term-ocean-freight-rates-on-the-rise-again-as-demand-congestion-and-geopolitical-uncertainty-squeeze-shippers" target="_blank" rel="noopener">long term ocean freight rates</a> are on the rise again due to congestion, demand and geopolitical uncertainty. &nbsp;</li>
</ul>
<h3><em>UK bans Russian vessels amid Ukraine war</em></h3>
<ul>
<li>The United Kingdom (UK) government banned Russian flagged, controlled, registered, owned, chartered or operated vessels from its ports due to the invasion of Ukraine.</li>
</ul>
<h3><em>BIC and FIATA join the Cargo IntegrityGroup</em></h3>
<ul>
<li>Bureau International des Containers (BIC) and the International Federation of Freight Forwarders Associations (FIATA) have <a href="https://www.seatrade-maritime.com/supply-chain-and-logistics/bic-and-fiata-join-cargo-integrity-group" target="_blank" rel="noopener">joined the Cargo Integrity Group</a>, which brings together international freight transport and cargo handling organisations with various roles in the supply chain industry to enhance security, safety and environmental performance.</li>
</ul>
<h3><em>ICC fears Russia – Ukraine war will disrupt global manufacturing </em></h3>
<ul>
<li>Among several other fears, the International Chamber of Commerce (ICC) recently noted that the Russia – Ukraine war runs the deeper risk of <a href="https://iccwbo.org/news-publications/news/icc-statement-on-russia-ukraine-conflict/" target="_blank" rel="noopener">disrupting manufacturing on a global scale</a> over a broad range of sectors.</li>
</ul>
<h2><strong>Middle East </strong></h2>
<h3><em>Abu Dhabi Ports Group (AD Ports)acquires Divetech Marine Engineering Services</em></h3>
<ul>
<li>AD Ports Group recently acquired Divetech Marine Engineering Services, a United ArabEmirates (UAE)-based topside – subsea solutions provider which operates in the space of installation, inspection, maintenance of ports, repair and other maritime organisations.‍</li>
</ul>

<h2><strong>India</strong></h2>
<h3><em>Shipping Minister inaugurates mobile container scanning facility at Visakhapatnam Port</em></h3>
<ul>
<li>Union Shipping Minister Sarbananda Sonowal recently inaugurated a mobile container facility at VisakhapatnamPort in Andhra Pradesh.</li>
</ul>
<h3><em>Indian exporters exercising caution over shipments to Russia amid Ukraine war</em></h3>
<ul>
<li>Amid Russia’s invasion of Ukraine, Indian exporters are exercising <a href="https://www.business-standard.com/article/economy-policy/ukraine-crisis-indian-exporters-delay-orders-worry-over-payment-dues-122022300013_1.html" target="_blank" rel="noopener">caution over shipments to Russia</a> and executing existing orders. Exporters are also delaying the execution of fresh order over fears of delay in payments.</li>
</ul>
<h3><em>‘Indian economy growing at quickest pace among large nations’</em></h3>
<ul>
<li>According to the Monthly Economic Review of the Union Finance Ministry, Indian economy is poised to <a href="https://economictimes.indiatimes.com/news/economy/policy/india-economy-to-grow-at-quickest-pace-among-large-nations-finmin-report/articleshow/89610859.cms" target="_blank" rel="noopener">grow at the fastest pace</a> among large nations powered by 2022 – 23 budget initiatives.</li>
</ul>
<h3><em>‘Indian textiles exports can touch $100 billion in the next five years’</em></h3>
<ul>
<li>Textiles secretary Upendra Prasad Singh noted that Indian textile exports can touch <a href="https://economictimes.indiatimes.com/small-biz/sme-sector/apparel-industry-should-go-for-backward-integration-textiles-secretary/articleshow/89763680.cms" target="_blank" rel="noopener">$100 billion</a> in the next five years at the 44th foundation day of Apparel Export Promotion Council(AEPC).</li>
</ul>
<h3><em>Leather exports expected to cross $6billion in 2022 – 23 </em></h3>
<ul>
<li>India’s leather exports are expected to <a href="https://www.business-standard.com/article/economy-policy/leather-footwear-exports-to-cross-6-billion-in-2022-23-cle-122022000319_1.html" target="_blank" rel="noopener">cross $6 billion</a> in 2022 – 23, enabled by rising demand in the United States of America (USA) and newer markets like the Middle East, Latin America and Africa.</li>
</ul>
<h3><em>Commerce Ministry sets up help desk for traders amid Russia – Ukraine war</em></h3>
<ul>
<li>Indian Commerce Ministry has set up a <a href="https://www.business-standard.com/article/current-affairs/commerce-ministry-sets-up-helpdesk-for-russia-ukraine-related-trade-issues-122022501443_1.html" target="_blank" rel="noopener">help desk for Indian exporters and importers</a> to reach out in the event of any issues rising up amid Russia – Ukraine war. &nbsp;</li>
</ul>
<h3><em>Indian Register of Shipping completes CAP certification for four vessels</em></h3>
<ul>
<li>Indian Register of Shipping has completed the condition assessment programme <a href="https://www.hellenicshippingnews.com/indian-register-of-shipping-completes-cap-certification-of-vlccs-and-lpgs-of-mol-tankship-management-pte/" target="_blank" rel="noopener">(CAP) certification for four vessels</a> of MOL Tankship ManagementPte Ltd, Singapore. It issued the certifications to two very large crude carriers (VLCCs) and two liquefied gas carriers.</li>
</ul>
<h3><em>Export curbs on remdesivir, APIs removed</em></h3>
<ul>
<li>Amid falling Coronavirus cases in India, the Directorate General of Foreign Trade (DGFT) removed export curbs on remdesivir and active pharmaceutical ingredients (API). &nbsp;</li>
</ul>
<h3><em>Russia – Ukraine war impacts tea exports and fertilizer imports</em></h3>
<ul>
<li>The raging Russia – Ukraine war has impacted <a href="https://english.mathrubhumi.com/news/kerala/russia-ukraine-war-impacts-india-s-fertilizer-imports-and-tea-exports-kerala-too-face-heat-1.7301919" target="_blank" rel="noopener">Indian tea exports and fertilizer imports</a>. India is dependent on Ukraine, Russia and Belarus for fertilizers while tea exports to major markets Russia and Ukraine are disrupted.</li>
</ul>
<h3><em>IndiGo tests sustainable aviation fuel</em></h3>
<ul>
<li>Indian airline IndiGo has recently tested sustainable aviation fuel (SAF) on a flight from Toulouse, France to Delhi. The test fuel comprised of a blend of 10percent SAF and 90 percent normal fuel.</li>
</ul>
<h3><em>GMR Hyderabad Air Cargo (GHAC) aiming to become largest in Central and South India</em></h3>
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<ul>
<li>GHAC is boosting its infrastructure to emerge as the <a href="https://telanganatoday.com/ghac-set-to-emerge-as-largest-air-cargo-hub-for-south-central-india" target="_blank" rel="noopener">largest air cargo hub in Central and Southern India</a>. It witnessed 35 percent growth in domestic cargo volumes in 2021.</li>
</ul>
<h3><em>India to integrate national logistics portal with Unified Logistics Interface Platform (ULIP)</em></h3>
<ul>
<li>Aimed at slashing logistics cost, Indian government is working towards integrating the national logistics portal with ULIP. As many as 24 digital systems of six ministries will be merged into ULIP.</li>
</ul>
<h3><em>FIEO urges exporters to follow wait&amp; watch strategy amid sanctions on Russia</em></h3>
<ul>
<li>A. Sakthivel, president of the Federation ofIndian Exporters Organisations (FIEO) urged exporters to follow a wait and watch strategy with respect to shipments amid US banking and financial sanctions onRussia due to the war with Ukraine.</li>
</ul>
<h3><em>CONCOR flags off first full rake of 40feet containers to Bangladesh</em></h3>
<ul>
<li>In a first, the Container Corporation of India(CONCOR) recently flagged off its first batch of full rake carrying 40feet export containers from its CFS at Majerhat in Kolkata to Benapole inBangladesh. &nbsp;The containers were carrying assembly plant components and auto parts.</li>
</ul>
<h3><em>‘PM Gati Shakti plan will give a new direction for modern infrastructure’</em></h3>
<ul>
<li>Prime Minister Narendra Modi recently said PM Gati Shakti plan will offer a new direction for the development of modern infrastructure in India through planning, implementation and monitoring among other efficiencies. &nbsp;</li>
</ul>
<h3><em>India’s farm exports to touch $50 billion in 2021 – 22</em></h3>
<ul>
<li>Powered by growth in rice, marine, meat and poultry items, India’s farm exports are expected to touch <a href="https://economictimes.indiatimes.com/news/economy/agriculture/farm-exports-expected-to-touch-record-50-billion/articleshow/89029430.cms" target="_blank" rel="noopener">$50 billion</a> in 2021 – 22.</li>
</ul>
<h3><em>Indian tea exports prospects brighten as Australia opens up</em></h3>
<ul>
<li>As Australia opens up after implementing some of the most stringent Coronavirus restrictions, Indian tea exports prospects to that country have brightened, considering the former is one of the highest paying buyers of the latter’s tea.</li>
</ul>
<h3><em>Deendayal Port Authority board meets and takes multiple decisions</em></h3>
<ul>
<li>Approval for upgrading plots, roads and SWD in40-hectare area inside cargo jetty area and improving and upgrading parking yards situated on the north of the road leading to W. G. I &amp; II outside cargo jetty area were among the several decisions taken by the board of Deendayal Port Authority which met on February 28th.</li>
</ul>
<h3><em>Gati Shakti National Master Plan can lower logistics costs to one of the lowest in the world</em></h3>
<ul>
<li>Commerce and Industry Minister Piyush Goyal noted that the Gati Shakti National Master Plan can <a href="https://orissadiary.com/pm-gatishakti-national-master-plan-can-help-lower-our-logistics-cost-to-one-of-the-lowest-in-the-world-at-7-8-of-gdp-piyush-goyal/" target="_blank" rel="noopener">lower logistics costs</a> in India to one of the lowest in the world and raise competitive edge in the global market.</li>
</ul>
<h3><em>ECGC coverage on export transactions to Russia not withdrawn</em></h3>
<ul>
<li>India’s Export Credit Guarantee Corporation(ECGC) recently clarified that coverage on export transactions to Russia has not been withdrawn.</li>
</ul>
<h3><em>JNPT achieves all-time highest container handling feat</em></h3>
<ul>
<li>Jawaharlal Nehru Port Trust (JNPT) has achieved the feat of handling the highest number of containers, 5.15 millionTEU, in its history in 2021 – 2022, compared to the 5.15 million TEU clocked in2018 – 19.</li>
</ul>
<h3><em>Deendayal Port Authority has 10projects worth Rs 3,159 crore under PM Gati Shakti </em></h3>
<p><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" alt="" width="300px"></p>
<ul>
<li>Deendayal Port Authority (DPA) has 10 projects worth Rs 3,159 crore under PM Gati Shakti National Master Plan. Additionally, seven more projects worth Rs 6,685crore have also been envisaged at Rs 6,685 crore. In total, 17 projects worthRs 10,000 crore will add a capacity close to 100 MMTA. &nbsp;</li>
</ul>
<h3><em>DGFT provides relief to moong importers</em></h3>
<ul>
<li>Offering relief to moong importers, <a href="https://www.thehindubusinessline.com/economy/agri-business/relief-for-moong-importers-as-dgft-relaxes-policy-to-permit-shipments/article65144271.ece">DGFT relaxed some provisions</a> of the foreign trade policy to enable them to import moong cargoes contracted prior toFebruary 11.</li>
</ul>
<h3><em>Revised berthing policy at Adani Hazira Port to begin from April 1</em></h3>
<ul>
<li>The revised berthing policy and tariff structure (BPTS) for Adani Hazira Port’s terminal will begin from April 1.</li>
</ul>
<h3><em>CBIC slashes compliance requirements&amp; introduces end to end automation</em></h3>
<ul>
<li>Aimed at achieving Atmanirbhar Bharat and propelling ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) <a href="https://www.taxscan.in/govt-reduces-compliances-and-end-to-end-automation-of-procedure-relating-to-import-of-certain-goods-at-concessional-rate-of-duty/157742/" target="_blank" rel="noopener">slashed some compliance requirements</a> under Customs(import of goods at concessional rate of duty-IGCR, 2017) and also introduced end to end automation.</li>
</ul>
<h3><em>Finance Minister launches e – bill processing system</em></h3>
<ul>
<li>Union Finance Minister Nirmala Sitharaman launched e – bill processing system as part of ease of doing business and digital India ecosystem, aimed at quickening payments processes and ushering in broader transparency.</li>
</ul>
<h3><em>Oil prices bigger worry for Indian than trade with Russia</em></h3>
<ul>
<li>According to S&amp;P Global CommodityInsights, rising <a href="https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/030222-oil-prices-not-russian-trade-flows-a-bigger-worry-for-india">oil prices is a bigger worry</a> for India than the trade flows with Russia. Platts Analytics noted that high flat crude oil prices will cause inflationary pressure.</li>
</ul>
<h3><em>‘Mumbai will emerge as cruise capital of India’</em></h3>
<ul>
<li>Mumbai Port Trust chairperson Rajeev Jalota highlighted that the western Indian city of Mumbai will emerge as the cruise capital ofIndia.</li>
<li>He said Mumbai International Cruise Terminal(MICT) and Floating Storage Regasification Unit (FSRU) are the two major upcoming projects in the port.</li>
<li>The cruise terminal can handle up to 6,000passengers at a time, even as 40 lakh cruise passengers are expected in India by 2041 – 42.</li>
</ul>

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