Supply Chain Technology: TSM - Still Growing

Tough economic times haven’t stopped shippers from investing in new systems or upgrading their existing Transportation Management Systems (TMS). And that trend makes perfect sense because the technology has long been known as a tool to increase supply chain visibility and cut redundant costs. A tool that can make companies work smarter, better, and faster in the best of times—and in the worst of times. Analysts agree that the TMS option fits well in that equation with its ability to eradicate repetition, increase supply chain visibility, and cut redundant costs.

According to Adrian Gonzalez, director of ARC’s Logistics Executive Council and author of the new study “Transportation Management Systems Worldwide Outlook,” 2007 was a banner year for almost all TMS vendors. And while the study revealed a few changes in market share rankings among the vendors, Gonzalez says “the reality is that most vendors continue to grow their revenues and client bases. In short, there are plenty of TMS sales opportunities available in the market.

To view the full article, visit Logistics Management at http://www.logisticsmgmt.com/article/CA6635275.html

Global Logistics Regulation: Time's Up!

The clock has been ticking for several years, and now shippers must acknowledge that the time for embracing regulatory standards has arrived. Who’s ready for the onslaught of regulatory change?

While “change” may be the operative word when it comes to regulatory compliance this year, shippers realize that “or else” is the unstated maxim. Industry analysts have been suggesting for years that by conforming early to government mandates, shippers may actually be gaining something beyond improved security—a sharpened competitive edge. Well, your friends at Department of Homeland Security (DHS), Customs and Border Patrol (CBP), and The Transportation Security Administration (TSA) certainly think so, as do many supply chain specialists who maintain that security equals efficiency.

At this moment, the much-maligned 10+2 rule is being fine tuned during its “interim period” for ocean shippers, and air shippers are trying to cope with 50 percent screening of inbound and outbound cargo.

To find out where things stand on the regulatory front - and where things may be going if there's enough resistance, please visit Logistics Management at http://www.logisticsmgmt.com/article/CA6635274.html

Managing Supply Chain Risk by Monitoring Chinese Sourcing Capacity

Just after noon on November 1, the chairman of the company that owned China Top Industries, a shoe factory in Dongguan, China, made a surprise announcement to his assembled workers: the factory was closing, effective immediately. Then he climbed the wall surrounding the factory and fled, leaving behind a mountain of bad debts.

The closure shocked almost everyone, from the 2,000 employees who had arrived that morning thinking their jobs were secure to China Top’s American customers, who were left with a sudden, gaping hole in their supply chain.

But in far away New York City, one person saw it coming: Josh Green, co-founder and CEO of Panjiva, a startup that provides analysis on overseas suppliers for the apparel industry. “On October first, according to our data, China Top had had a drop-off in output,” Green said. “So we had a good indicator a full month ahead.”

To view the full article, visit WorldTrade Magazine at http://www.worldtrademag.com/Articles/Article_Rotation/BNP_GUID_9-5-2006_A_10000000000000520353

Where's the Goods? Where's the Money?

Trust lies at the center of all trade finance transactions, but these days, with the credit crunch putting a dent in global commerce, safe harbors are in short supply.

Exporters offering payment terms to foreign buyers are more cautious, and banks that support cross-border sales are more stringent in managing the credit risks involved. Working capital and receivables finance, inevitably, are more expensive and less available.

That’s one reason why Supply Chain Finance (SCF) programs are increasingly popular. These strategies, which combine Internet platforms, software and programs, have been brought to trading operations over the past decade by a handful of large, global banks and a cluster of independent technology companies. SCF has demonstrated a capacity to mitigate risks and build trust, particularly in the huge Asia-U.S. and Asia-Europe trade routes on which it has been heavily focused.

It may be a critical, strategic moment for these banks and technology groups to expand their presence in the larger global trade arena. Some leading players in the field seem to think so.

To view the full article, visit WorldTrade Magazine at
http://www.worldtrademag.com/Articles/Article_Rotation/BNP_GUID_9-5-2006_A_10000000000000520081

Burden of Proof

On January 30, the Consumer Product Safety Commission took a half step back in its enforcement of the Consumer Product Safety Improvement Act of 2008. Importers, domestic manufacturers and retailers felt they had an 11th-hour reprieve from a confusing law that threatened to put some companies out of business.

With less than two weeks to go before the deadline, commissioners voted to delay for one year enforcement of a section of the law that requires companies to certify that their products comply with the law's lead and phthalate standards, which must be backed up with laboratory tests.

For the trade industry, there was actually little to cheer. While companies are spared the paperwork burden, they still have to comply with the law's lead and phthalate limits for children's products. Beginning on February 11, an item with lead levels of greater than 600 parts per million or 0.1 percent of certain phthalates will become a banned hazardous product.

The full article can be found on page 24 in the February 9, 2009 edition of The Journal of Commerce.

U.S. Trade Deficit Narrows in December

The U.S. trade deficit sank in December to $39.9 billion from $41.6 billion a month earlier as imports slowed faster than exports, the Commerce Department reported Wednesday.

Total exports were $133.8 billion and imports were $173.7 billion during the month. December exports were $8.5 billion less than in November and imports were $10.2 billion less, most due to declines in trade of goods.

The value of goods exported and imported was $88.7 billion and $140.3 billion, respectively, resulting in a goods deficit of $51.6 billion.

Areas that saw the biggest declines in overseas sales were industrial supplies and materials, automotive, consumer goods, and food, feed and beverages.

2008 trade figures showing U.S. exports of $1.84 trillion and imports of $2.52 billion resulted in a goods and services deficit of $677 billion, $23.2 billion less than the 2007 deficit. As a percentage of gross national product, the goods and services deficit was 4.7 percent in 2008, down from 5.1 percent in 2007.

For goods, the trade deficit still grew in 2008. Exports of goods were $1.29 trillion, up $138 billion, and imports were $2.11 trillion, up $143.5 billion. This resulted in a goods deficit of $821.2 billion, $1.8 billion more than the 2007 deficit.

For services, exports were $551.6 billion and imports were $407.6 billion, resulting in a services surplus of $144.1 billion, $24.9 billion more than the 2007 surplus.

Basham to Step Down

Press sources are reporting that U.S. Customs and Border Protection Commissioner Ralph Basham will step down February 28. Deputy Commissioner Jay Ahern will serve as acting commissioner until a replacement is nominated and confirmed by the Senate. A Journal of Commerce article cited a Department of Homeland Security spokeswoman as saying DHS Secretary Janet Napolitano has been speaking with potential candidates.

This article can be found at WorldTrade/Interactive at http://www.strtrade.com/wti/wti.asp?pub=0&story=30279&date=2%2F13%2F2009&company=

10+2 Filings Show Improvement

The rejection rate for inaccurate or incomplete Importer Security Filings has fallen to about 15 percent since the new advance electronic document became a requirement two weeks ago, program manager Richard DiNucci said.

The so-called "10+2" rule, a reference to the number of data types importers and ocean carriers must submit to CBP, went into effect on Jan. 26. The data elements focus on descriptions of the origin, contents and destination of the cargo. CBP is plugging the data into its targeting system for high-risk shipments. As of Friday, CBP has received about 30,000 filings and more than 2,000 unified filings from importers or their designated agents.

CBP Does Its Part To Stimulate Economy

Companies are shedding jobs at an unprecedented rate as the U.S. economy weakens, but U.S. Customs and Border Protection is offering hope to thousands of people as it looks to fill 11,000 law enforcement officer and support positions this year.

On Saturday, the agency launched a national recruiting campaign with open houses at 15 locations across the country. CBP said 22,400 applicants attended the one-day event to learn about CBP's mission, career options and how to apply for a job.
More than 6,000 people turned out in both Detroit and Laredo, Texas.

To view the full article, visit American Shipper at
http://www.americanshipper.com/NewWeb/News/shippers-newswire/logistics/122897--cbp-does-its-part-to-stimulate-economy.html

Export Licensing Statistics & Common AES Filing Errors

In the January 2009 issue of the Census Bureau’s AES Newsletter, Bureau of Industry and Security Senior Trade and Industry Analyst Gerry Horner an update on export licensing and common Automated Export System filing errors. He noted that in calendar year 2007 U.S. companies exported $2.8 billion of licensed items and $14.2 billion of items under a license exception, representing 0.2 percent and 1.2 percent, respectively, of overall U.S. exports.

For more on export licensing and common AES filing errors, read the entire article by visiting http://www.strtrade.com/wti/wti.asp?pub=0&story=30189&date=2%2F4%2F2009&company=

EU Pursuing Individual FTAs with Andean Countries

According to press reports, the European Union has broken an impasse with Colombia, Ecuador and Peru and plans to launch talks this week on bilateral free trade agreements with each of those countries.

For the complete article, please visit http://www.strtrade.com/wti/wti.asp?pub=0&story=30204&date=2%2F5%2F2009&company=

Demand for Supply Chain Execution Software Will Stay Strong

The economy may be down and businesses may be cutting back, but supply chain execution (SCE) software packages are expected to sell briskly throughout 2009. That's the consensus view of leading analysts who follow the supply chain software market for a living.

As for why these applications would be bucking sales trends, it's all about managing costs. In an economic downturn, companies are looking to pare warehousing and transportation expenses wherever they can. And that's precisely what tools like warehouse management systems (WMS), transportation management systems (TMS), and global trade management systems (GTM) are designed to do.

For the full article, visit http://dcvelocity.com/articles/?article_id=2182&ref=toc.

China & Switzerland to Consider Free Trade Pact

Today Switzerland became the first country whose investors will receive a "higher level" of protection in China, under the terms of a bilateral agreement signed during a working visit by Chinese Premier Wen Jiabao. The two countries also agreed to set up a working group to study a free trade agreement that should go into effect "as soon as possible."

To read the full article, visit http://genevalunch.com/2009/01/28/china-and-switzerland-investment-protection-signed-free-trade-under-study/

NAFTA Trade Suffers Biggest Fall since 9/11

The value of trade using surface transportation between the United States and its North American Free Trade Agreement partners Canada and Mexico was 13.8 percent lower in November 2008 than in November 2007, dropping to $60.7 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.

It’s the biggest year-to-year decline in almost eight years, the agency said. BTS reported that the 13.8 percent decline was the second largest from the same month of the previous year since North American surface freight data collection began in April 1994, three months after NAFTA was implemented.

The only bigger decline was the 14.6 percent drop from December 2000 to December 2001in the post-9/11 period.

About 88 percent of U.S. trade by value with Canada and Mexico moves on land. The value of U.S. surface transportation trade with Canada and Mexico in November was up 25.2 percent compared to November 2003, and up 53.6 percent compared to November 1998. Imports in November were up 52.6 percent compared to November 1998, while exports were up 54.9 percent.