GHY Tradelines

(Export Development Canada – Peter G. Hall)

Blinding. That’s the speed at which international trade has been transforming over the past two decades. It is re-casting models of cross-border commerce, and in the process has led to a lot of confusion about traditional definitions of international trade. In the midst of all this change, is it possible to get a handle on what an exporter really is these days? A tough task, but let’s give it a try.

We’ll start with old definitions, when things were a lot simpler. Trade used to be largely about shipping raw and finished goods. Raw goods would come from source to factory loading docks, be produced into a final good, and shipped to the end user in a foreign country. These simpler times gave rise to a stream of thinking we still struggle to shed: that exports are good, imports are bad, and that large trade surpluses are the goal. That’s the essence of mercantilism, and today’s trade probably has no greater enemy. Thankfully, trade’s transformation is increasingly helping it to gain the upper hand.

Technology is really the game-changer. Transportation has undergone a multi-generational overhaul that sees us able to whisk people about at far lower cost, at great frequency and at higher speed and efficiency. The same is true for goods, where multi-modal movements of goods to and from anywhere on the planet has been honed to a fine art, increasing the speed of movement, optimization to lower costs and reliable, just-in-time delivery. Advances in communication are growing exponentially, enabling us to buy, sell and produce on planet-wide platforms that are humming somewhere, 24-7, and make payments effortlessly. It’s complex and a bit daunting, but it opens up great possibilities. Read more here.
 

(Transport Intelligence – John Manners-Bell)

At the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, the issue of supply chain risk took a high profile, with senior government figures and industry leaders seeking to develop ways in which economic damage caused by disrupted supply chains could be mitigated.

As part of the initiative, a new report was launched at the event. The report, New Models for Addressing Supply Chain and Transport Risks produced in collaboration with Accenture, highlighted the urgent need to review risk management practices. Read more here.
 

(International Freighting Weekly – Katerina Kerr)

Fewer vessels arrived in port on time, for the second consecutive quarter, says analyst

Container shipping service reliability has declined for the second successive quarter, in line with decreasing freight rates. According to Drewry Maritime Research’s latest Schedule Reliability Insight report, the proportion of the 2,972 vessel calls arriving on time at ports around the world in Q1 dropped to 51%, down from 55% in Q4 2010.

Despite showing the biggest decrease, the transpacific trade remained the most reliable of the three major east-west routes.

Reliability of transpacific services fell from 64% in Q4 last year to 55% in Q1 this year. In comparison, Asia-Europe/Mediterranean services dropped one percentage point to 49%, while transatlantic services went from 55% to 52%. Read more here.

(International Freighting Weekly – Mike King)

Operators work to keep vital transport lanes open as power blackouts impact rescue and aid services

Logistics companies are struggling to keep key transport routes open in Japan as the full impact of Friday’s earthquake and tsunami becomes apparent. Rail and road networks in large parts of northern Japan remain disrupted or closed, while cargo operations at ports and airports in the Tokyo region are subject to delays.

Electricity blackouts in Tokyo are further affecting communications and transport operations. Read more here.