The recent announcement from Amazon that they have heavily invested in Drones to speed up same day delivery of its online commerce has made the whole logistics industry realize how fast and far this sector can go to achieve immediate gratification in the entire chain. Yes, the Amazon announcement was a publicity ploy for Cyber Monday, but the potential is still clearly there. What follows are some of the latest technologies which have changed or promised to drastically transform the logistics industry for the next 10 to 20 years.
Drone Delivery System
Even though there is little known about it and the rapid delivery demand is still very marginal, especially if it comes with a hefty price tag, the Drone Delivery System promises to open up new markets. It could be possible that 3PL companies, for example, will offer not only the service of freight arrangement itself, but also the “Drone control tower” delivery services, helping to manage the massive number of drones that possibly will be flying over big crowded cities such as New York, Sao Paulo, and Toronto. According to CBCNews, Drones have already been used to deliver packages and cakes in China and beer at a South African music festival, and in Canada, commercial drones have been allowed since 2008, but current laws require commercial operators to file a Special Flight Operation Certificate with Transport Canada for every flight.
Pictogram-based logistics language
According to the PWC report, pictograms are already in use for traffic planning and regulation in some countries (like, Japan). These easy to understand ‘pictures’ can be interpreted by individuals regardless of reading and writing skills or language. A similar concept could be transferred to the logistics industry and help to improve logistics processes. A standardized, pictogram-based logistics language would simplify logistics processes between regions or countries in which different languages are spoken, overcoming language barriers. Moreover, a pictogram-based logistics language would not only be interpretable by human beings, but also by machines and computers. Implementing such a language could help companies realize higher degrees of automation and compatibility between different systems. Dangerous goods shipment regulations already use the pictogram concept as a universal language
As published by Logistics Management in October 2013, virtually unlimited storage space, and the potential to reduce IT implementation and support costs, have made a growing number of companies opt for implementing cloud-based applications that allow them to share and access both software and information via the web. Instead of using their own physical servers or hard drives to store the software and information, logistics professionals can now “subscribe” to software services that are housed and readily accessible online in a 24/7 format.
Mobile tracking and tracing
The high demand for mobile phones brings into customers’ hands the power to live monitor their freight simply using tracking and tracing devices. For instance, truck drivers could be localized via their mobile phones, which would give information about the precise location of the transported goods and products. Eventually these devices could monitor temperature, vibration and moisture.
E-Documents / E-Letters
Effective e-document transfer replaces the need to deliver physical mail to households in urban and rural areas. Even official and legal documents could be transmitted virtually, minimizing the need for physical delivery, or perhaps even eliminating it completely, shortening even more the process of negotiation between international business partners, for example.
Social Media network
Social media and virtual relationships are not a trend anymore. They are already a reality. Social Media networking platforms have changed not only the way Logistics companies have accessed the latest news about the industry, but also how the recruitment process for new professionals has been made, and, most importantly, how customers discover companies, track packages and interact with customer service. As said during the 2011 annual Logistics CIO and Supply Chain Technology Forum in Chicago, Facebook, Twitter, and LinkedIn, are changing the way information is exchanged in the logistics community. PriceWaterCoopers Transportation and Logistics 2030 report pointed out that brokers could gather virtually in a sort of professional social network that would possibly assist in ‘getting to know the right people’ in the industry at the same time that they share ideas on future overseas business plans. To date webinars, easy to use tracking formats using key interfaces like Facebook, Twitter, and LinkedIn make the logistics process seem immediate.
RFID has helped logistics players in monitoring two of the most common mistakes the logistics industry, information management and the delivery at right destination. The package identification by barcodes and RFID has facilitated information management activities like routing and scheduling, which helps logistics companies and customers to track the product and ensure accurate delivery of goods.
One day soon the speed of cargo delivery will rival the speed of change.
Have you lately thought to expand your business? Well, if so, you should definitely consider importing, exporting, or even going to Brazil. The Samba land is the Latin America’s biggest economy and the 6th largest in the world by nominal GDP estimated of $2.5 trillions of U.S. dollars in 2013. It is also the fifth largest country in the world in terms of land mass and population with about 192 million people.
According to Government of Canada, Brazil is a priority for Engagement in the Americas, Global Commerce Strategy and International Education Strategy. Canada-Brazil relations have grown increasingly closer based on both countries strategic interests and engagement based on the promotion of security, prosperity and democratic governance. The relationship between Brazil and Canada has been strengthened by extensive whole-of-government cooperation in many sectors, such as health, education, defence, agriculture, and science and technology. Canada’s relationship with Brazil is growing, as indicated by the level of official visits, burgeoning trade and investment, and greater interest in both countries in learning more about the other from both a public policy and person-to-person perspective.
HSBC Commercial Banking in partnership with PriceWaterHouseCoopers published in March 2013 Doing Business in Brazil report describing how and why to do business in Brazil. The report declares that the most usual procedure for a foreign investor to start doing business in Brazil is by organizing a company. In order to do so, the company must request a Federal Tax Number (CNPJ) by registering the Cademp (Cadastro de Empresas) at Central Bank. In addition, The World Bank has also published a report where they make available a great amount of Doing Business 2014 data about Brazil and different other countries around the globe. The brochure highlights the challenges of launching a business in Brazil including the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.
The U.S. Export.org website affirms that there are few, if any, sectors in Brazil that do not have excellent short-term opportunities. Certain sectors of the Brazilian market have experienced higher than average growth, such as air transportation, telecoms, oil and gas, and mining. Under the second phase of the Growth Acceleration Program (PAC II), the Government of Brazil will spend R$955 billion (the equivalent of around US$470 billion) in development of the country’s energy generation and distribution system, roads, railroads, ports, and airports as well as stadiums as it prepares for the World Cup in 2014 and the Olympics in 2016. Other promising areas for investment include agriculture, agricultural equipment, building and construction, aerospace and aviation, electrical power, safety and security devices, environmental technologies, retail, and transportation.
Moreover, when it comes to business etiquette, Brazilian people value the close personal relationships; by cultivating it and building trust, you will have a greater chance of successfully doing business in Brazil. Handshakes are the most common form of greeting between business colleagues; however, in more informal situations, women will tend to greet each other with a kiss on either cheek, while men may briefly embrace. When you meet someone for the first time, it is polite to say ‘muito prazer’ (‘my pleasure’). Expressions such as ‘como vai’ and ‘tudo bem’ are common forms of saying ‘Hello‘ once you know someone and can show you are making an effort to know them. Differences in class are still very prevalent in Brazilian society and business culture. Class is mostly determined by economic status and is reflected in the salaries people receive, resulting in large disparities of pay and status.
Relationships are one of the most important elements in the Brazilian business culture. Foreign companies need a local presence or even establishing partnership with companies with long experience in the Brazilian market, in order to quickly develop relationships in Brazil. It is important that companies visit Brazil to meet one-on-one with potential partners and participate in local trade shows. It is essential to work through a qualified representative or distributor when developing the Brazilian market.
If you have any question about how to Export to or Import from Brazil, no hesitate to give us a call. MELLOHAWK Logistics has more than 10 years of experience in the Brazilian market and a plenty of successful projects that make us reference in Canada when it comes to do Business in Brazil.
The Canadian Ministry of Transportation reported last month that new and expanded air transport agreements were made with Algeria, Burkina Faso, Ecuador, Ethiopia, Macedonia, South Africa and Turkey, as part of Harper government’s Consumers First agenda and its focus on jobs, growth and long-term prosperity.
OTTAWA — The Honourable Lisa Raitt, Minister of Transport and the Honourable Ed Fast, Minister of International Trade, are pleased to announce that Canada has successfully concluded new and expanded air transport agreements with seven countries spanning several regions of the world.
The amended agreements with Algeria, Ethiopia, South Africa and Turkey expand Canada’s existing air transport relationships by allowing airlines to introduce more flight options and routings, which benefit passengers and businesses by providing greater choice and convenience.
First-time bilateral air transport agreements have also been reached with Burkina Faso, Ecuador and Macedonia. These new agreements will help develop air travel markets between Canada and these countries by providing full flexibility for airlines to offer air services using the flights of other airlines, commonly referred to as code-sharing, and to adjust prices according to market conditions.
Today’s announcements come as the 38th session of the International Civil Aviation Organization’s (ICAO) Assembly wrapped up last week at its headquarters in Montreal.
“This has been a great two weeks for Canada’s aviation industry and those who benefit from it,” said Minister Raitt. “We have solidified our position as a leader in international aviation. Canada is the natural home of ICAO and an innovative model for the development of safe, secure and sustainable aviation. We are also continuing to build and expand air transport relationships as demonstrated by today’s announcement. These relationships will provide more commercial opportunities to the Canadian air industry and are important for the competitiveness of our business and tourism sectors. They also give travellers and shippers more choice and convenience.”
“Today’s announcement is yet another example of how our government’s broad and ambitious pro-trade plan will benefit Canadian workers, exporters and businesses,” said Minister Fast. “The expansion of air transport relationships goes hand in hand with opening new markets around the world, which we know creates jobs, growth and long-term prosperity here at home.”
The rights under most of these agreements are being applied administratively, which allows new air services to be introduced immediately.
The Government of Canada’s approach to expanding its air transport relationships is consistent with Canada’s Blue Sky policy, which encourages long-term, sustainable competition and the development of new or expanded international air services. Under this policy, the Government of Canada has concluded new or expanded air transport agreements covering almost 80 countries, including:
- Open Skies-type agreements with 16 countries: Barbados, Brazil, Costa Rica, Curaçao, the Dominican Republic, El Salvador, Honduras, Iceland, Ireland, Jamaica, New Zealand, Nicaragua, Sint Maarten, South Korea, Switzerland, and Trinidad and Tobago.
- Expanded agreements with 18 countries: Algeria, China, Cuba, Egypt, Ethiopia, India, Japan, Jordan, Malaysia, Mexico, Morocco, Pakistan, Peru, the Philippines, Saudi Arabia, Singapore, South Africa, and Turkey.
- First-time agreements with 19 countries: Bahrain, Bangladesh, Burkina Faso, Colombia, Croatia, Ecuador, the Gambia, Kenya, Kuwait, Macedonia, Panama, Paraguay, Qatar, Rwanda, Senegal, Serbia, Sierra Leone, Tunisia and Uruguay.
- A comprehensive air transport agreement between Canada and 27 of the European Union’s member states.
Additional and up-to-date information on the Blue Sky policy and its implementation can be found at: www.tc.gc.ca/bluesky.
For more information about Canada’s contribution to ICAO: http://www.tc.gc.ca/eng/mediaroom/releases-2013-h122e-7356.html
North European ports continue to project relatively strong growth in the first half of 2014, despite the miserable results forecast for 2013.
According to the Global Port Tracker report, North European laden imports in October were down more than 9 percent year-over-year, but are expected to grow 16 percent in the first half of 2014 on a 10 percent increase in laden imports for all of Europe. In addition, exports are also expected to rebound as the Asian and U.S. economies gain strength.
Short-term indicators are pointing “in the right direction” with seasonally adjusted industrial production having increased 1 percent in the 17-nation eurozone and by 0.5 percent in the European Union as a whole in August, compared with drops of 1 percent and 0.6 percent, respectively, in July, according to Eurostat.
Total imports to Europe increased 0.8 percent in August from July, with a 1.3 percent increase in North Europe and a 0.2 percent gain in the Mediterranean and Black Sea region. Total exports fell 8 percent, with a 7.5 percent decrease in North Europe and an 8.7 percent drop in the Mediterranean and Black Sea region.
Continue reading: Journal of Commerce – Report: North European Ports to See ‘Relatively Strong Growth’
The Intermodal Association of North America (IANA) released this week the Q3 2013 Intermodal Market Trends & Statistics report presenting that the total intermodal traffic grew in the third quarter of 2013 by 4.7 percent, year-over-year, attributable to gains across the board.
The Canadian Transportation & Logistics web article, on November 05, reported:
Domestic container volume continued to lead intermodal growth, posting a year-over-year increase of 9.4 percent, and combined with a 1.2 percent boost in intermodal trailer volume for the same period, all domestic equipment experienced 7.6 percent year-over-year gains during the third quarter of 2013, said the report.
Also contributing to the increase in total intermodal traffic was a slight uptick in international volume, which posted a 2013 Q3 gain of 2 percent over 2012. If jobs, consumer spending and/or the broader economy accelerate, a slow but steady growth trend is likely for the international market.
“For the tenth quarter in a row, domestic container volume flexed its muscles and has outpaced international shipments driving the gains in total intermodal traffic,” said Joni Casey, president and CEO of IANA. “It is also worth noting that the trailer segment grew in all three months of Q3, reversing three years of decline and contributed to domestic growth.”
Q3 marks the first time seasonally adjusted domestic shipments exceeded international shipments. This milestone was achieved after a decade of domestic service improvement and five years of accelerated volume gains. A contributing factor was weak international container trade volumes during the recession followed by an inconsistent rebound.
Despite a slight drop in regional traffic during Q3 2013, the strong growth Eastern Canada experienced in Q2 still allows for year-to-date growth. This decline can largely be attributed to lower import volumes. The region’s outbound trailer volume increased an impressive 10 percent over Q3 2012.
The Southeast region led intermodal in the third quarter of 2013, boasting an 11.3 percent gain over the same period last year according to IANA’s Market Trends data. Following immediately behind was the Northeast region, which posted an 8.3 percent gain compared to Q3 2012. The Midwest maintained its year-over-year Q3 hold on the largest percentage share of regional traffic, with 28 percent, said IANA.
Original article: Canadian Transportation and Logistics – Intermodal growth extends across all markets: intermodal association
Chinese $40-billion investment aims to build canal through Nicaragua to rival the Panama Canal by 2019
An astronomic investment to build the inter-oceanic waterway to rival the Panama Canal is back on the discussion table between Nicaragua and China.
The South China Morning Post, on October 29, reported:
A top-level Nicaraguan delegation — headed by the president’s son — traveled to mainland China and Hong Kong last week to discuss what could be the world’s largest waterway project.
The 21 politicians, academics and leading businessmen were hosted by HKND, the Hong Kong-based developer established only last year, which has been tasked by the Nicaraguan government to build a $40-billion canal through the Central American country.
Laureno Facundo Ortega Murillo, the son of Nicaragua’s president Daniel Ortega, led the group, which travelled to Beijing, Wuhan, Xuzhou, and Hong Kong.
In June of this year, President Ortega, signed a deal for the ambitious canal project with Wang Jing (shown), CEO of Hong Kong Nicaragua Canal Development Investment Co. Ltd. (HKND), a mysterious new Chinese company that claims to be privately owned and independent of the Chinese government.
“I am 100 per cent certain the construction will begin in December 2014 and we will finish in five years in 2019,” Wang was quoted as saying in a July 30 report in London’s Telegraph. However, within a few days of that rosy prediction, the project was engulfed in controversy and uncertainty, as opposition coalesced in Nicaragua over concerns that the project was being rushed through without proper feasibility and environmental studies being completed. The 178-mile route that Wang has announced as the path for the waterway is actually one of six proposed options, each of which has its own engineering, economic, social, and environmental challenges. Nicaraguan opponents — including prominent Sandinistas — were angered that Wang had jumped the gun and announced a specific route as a done deal, causing a political backlash against Leader Ortega, including street demonstrations and denunciations in the national legislature.
“We are in a special moment in China and in Nicaragua,” said delegation member Francisco Telemaco Talavera Siles, president of the National Council of Universities. “We are starting a new historical phase that is going to see closer relations,” he told the South China Morning Post. “This project opens [up] the possibility of closer relations with the government and people of China.”
The dream of a canal through Nicaragua has captured the minds of men for generations and Nicaragua was a top contender to the path that was eventually selected in Panama. How the Nicaraguan canal — if and when it is completed — would impact the competitiveness of the Panama Canal (which is undergoing a multi-billion-dollar expansion and update) is the subject of much debate.
Source: The South China Morning Post News – High-powered Nicaraguan canal delegation quietly visits mainland China
It’s Halloween Today, and while some people keep themselves very busy customizing their own costumes, retailers, farmers, and logistics companies celebrate one more promising holiday. To mark the occasion, there you go some Halloween related numbers.
The Shanghai Free Trade Zone, launched a month ago, destined to attract international investment, started to show progress regarding to permitting machinery imports to enter the zone duty-free.
“The new tax regulations say companies registered in the zone won’t need to pay customs duty on production equipment, and that leasing companies in the zone will only need to pay a 5 percent tax on purchasing aircraft weighing more than 25 tons, while those outside have to pay at least 7 percent.”
The plan still includes loosening the regulation of interest rates and full convertibility of nation’s currency, the renminbi (RMB), even though the rest of Mainland China remains subject to currency controls.
“Foreign companies will also be allowed to provide some internet services, though the official Xinhua news agency reported before the launch that internet restrictions would not be lifted, following a report by a Hong Kong newspaper that banned websites such as Facebook would be unblocked inside the zone.” (The Guardian)
The SHANGHAI PILOT FTZ in many respects is trying to compete with Hong Kong and Singapore, the pioneers and leaders of free-trade zones in Asia. Even though the introduction of such zone is certainly exciting, critical implementation details are yet to be issued under the General Plans of SHANGHAI PILOT FTZ.
Thecctv.com: Regulations of Shanghai Pilot Free Trade Zone bring optimism
Lexology.com: China opens experimental Free-Trade Zone in Shanghai
Theguardian.com: China opens Shanghai free-trade zone
Read more on The New York Times (Experimental Free-Trade Zone Opens in Shanghai)
Bloomberg – A blaze started at the facilities in the country’s biggest port at about 6:15 a.m. local time today, according to Codesp, the port managing company. Fire affected depots 20, 21 and 6, all owned by Copersucar SA, a spokesman for Codesp said by phone from Santos today. One of the depots has storage capacity of more than 100,000 metric tons, said the spokesman, who asked not to be identified citing company policy.
Ten ships were scheduled to load sugar at Copersucar’s terminal at Santos from yesterday through Nov. 3, Isis Markarian, a market assistant at Santos-based SA Commodities and Unimar Agenciamentos Maritimos, said by phone today. The ships were due to load 38,000 tons of white sugar and at least 340,000 tons of raw sweetener, Nicolle de Castro, a business analyst, said.
The fire destroyed 3 warehouses and was still burning at a fourth, Moises Agostinho, a firefighter at Sao Paulo state fire department, said in a telephone interview. Each depot had an area of 9,000 square meters (96,875 square feet), and two people sustained minor injuries. It is not known if the fire will affect the Port’s activities.
Read more on www.bloomberg.com
News in Portuguese:
Valor Economico: Sao Paulo – Um incêndio iniciado por volta das seis horas da manhã desta sexta-feira atinge cinco armazéns do terminal da Copersucar, no Porto de Santos. De acordo com informações da assessoria de imprensa da Companhia Docas do Estado de São Paulo (Codesp), o fogo afeta os terminais 20 e 21, no cais, e 6, 11 e 15, na retaguarda do porto.
A Tribuna: Em virtude do ocorrido, o Porto de Santos está com uma grande fila de caminhões. A Avenida Perimetral também está com uma faixa tomada pelos veículos comerciais. Em entrevista à TV Tribuna, o chefe da Defesa Civil de Santos, Daniel Onias, disse que o incêndio finalmente foi controlado, mas ainda há muito material queimando e o rescaldo deve demorar várias horas. “O fogo começou nas esteiras e, como o açúcar tem fácil combustão, a propagação ocorreu rapidamente. A Defesa Civil auxilia no isolamento da área para dar segurança aos trabalhadores e para a população”.
Panama-to-Suez traffic shift could increase market share to US/Canada east coast ports reported SeaIntel
Canadian Transportation & Logistics – According to research firm SeaIntel, a shift in traffic from the Panama to the Suez Canal is bringing increased market share to east coast US and Canadian ports.
SeaIntel reported that eighteen of 19 big container ports in Canada and the US posted a seven per cent increase in volume to 42 million TEU in 2012 since 2006 despite the 2008 global downturn.
SeaIntel’s analysis also shows that an increasing share of containers imported through west coast ports are exported through east coast ports in North America, said a report.
This activity is expected to intensify as carriers can deploy larger vessels, with lower cost per container, without having a significantly longer transit time, direct to the densely populated urban centres on the east coast.
Article available on Canadian Transportation & Logistics website← Older posts