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What are the Impediments to an Effective Global Trade?

If you define an ‘Effective Global Trade’ as a trade that is executed on schedule, without damage to the cargo and at planned cost, then your threshold for an ‘Effective Global Trade’ is too low. If you define an ‘Effective Global Trade’ as a transaction that is on schedule, at cost, end to end visible, continuously monitored, agile enough to enable redirecting the container and inventory while in transit, with managed and authorized custody, all transactions executed on line, 100% compliant with Customs and regulatory rules, and with fulfillment data integrated into your supply chain management system and ERP’s, then your concept of an ‘Effective Global Trade’ is aspirational. What challenges do Consignees or traders, LSP’s and Regulators face in trying to realize an aspirational “Effective Global Trade’? Consignee, LSP’s and Regulators: the consignee, fulfillment and regulatory takeholders business practices and culture attributes that impede an effective trade include: · Cons

US CBP suspends GTX Program

A senior U.S. Customs and Border Protection official said this week that CBP has suspended its plans to develop a global trade exchange system that would have expanded the amount of trade data collected by the agency. In his prepared testimony for an April 3 hearing of the House Appropriations Subcommittee on Homeland Security, Deputy Commissioner Jay Ahern also recommended that 100 percent scanning of U.S.-bound maritime cargo containers be limited to high-risk trade lanes. Ahern discussed the progress CBP has made in implementing its various supply chain security programs, but he pointed out that these efforts are focused on the ocean environment and that there are other areas that need to be addressed as well. Ahern told the committee that after considering comments from the trade community CBP has concluded that “further consideration of the GTX concept is premature at this time and may not be a prudent use of limited resources.” CBP is still finalizing its so-called 10+2 security

Seriously Flawed Decision-Making

I found this article written by James Giermanski under http://www2.csoonline.com/exclusives/column.html?CID=33447 , where you can find the full article. Here an extract: ************ Recently I met with a small group of former FBI agents at a monthly breakfast. The conversations, usually connected to past Bureau activities, moved to the discussion and criticism of Department of Homeland Security (DHS) and Customs and Border Protection (CBP). The flavor of comments follow: they’re out of touch with industry in the container security area; they’re in the pocket of big business; they lack vision; they’re arrogant; and they don’t have leadership; they lack talent; and more. However, while some old crusty ex-agents said it was “all of the above,” the consensus, if there was one, was that the fundamental problem within the Department was weak and sometimes flawed leadership. While I would expect those comments about DHS from a competitive agency, thinking about the breakfast discussion lat

Rebuilding Public-Private-Partnership

Global Trade is reliant on an efficient Public-Private-Partnership to enable, grow and facilitate trade while concurrently achieving business objectives and complying with public policy regulations. Global business continuously strives to find ways to reduce trade transaction costs and increase trade volumes. Concurrently, Governments are challenged to effectively use only a limited budget to meet economic, customs and security policies without impeding trade. While these private and public roles are complementary, they are also a point of trade transaction friction. The sources of the friction include tightening customs, regulatory and security requirements, limited public infrastructure, port congestion and incompatible Business-to-Business and Business-to-Government processes. As globalization increases, the cost of this friction increases. In order to reduce this friction and sustain trade, it is necessary to see the Public-Private-Partnership in a new light. The new Public-Private

The Box or the Chocolates?

I believe it was Vance Packard, in his seminal book, The Hidden Persuaders that told the story of how Whitman© Chocolates used to spend more on developing and producing the box in which the chocolates were sold then on the chocolates themselves. The packaging was more important then the chocolates to selling the product. Human nature? Perhaps. A sustainable solution? No. Think Lindt ® chocolates. This same myopic approach seems to be driving the discussion about Container security and monitoring solutions. The technology discussion is trumping the business imperative. Truth is, after determining the technologies reliability, flexibility and ease of use, users -- the 3PLs and their clients, the consignees -- don’t care about the engineering or hardware. Think iPod®. The optimal container monitoring solution recognizes: The box (Container) is not important: it’s the goods inside the Container that matters The truck or Vessel that delivers the goods is not important: it’s the goods in the

Beijing-Hamburg freight service completes maiden journey

This latest news from Deutsche Bahn is another evidence, that Globalization, compliance and sustainability challenges create new business opportunities for LSPs! Real-time visibility certainly can support these new business opportunities. **************************************************************************** Beijing-Hamburg freight service completes maiden journey by Staff Writers Hamburg, Germany (AFP) Jan 24, 2008 A goods train from Beijing arrived in Hamburg on Thursday after having crossed six countries in a journey organisers said could ring in a new era of rail transport between Asia and Europe. The "Beijing-Hamburg Container Express" left the Chinese capital on January 9 with its cargo of shoes, toys and electronic goods and covered the distance of 10,000 kilometres (6,200 miles) in 15 days, Germany's state-owned rail operator Deutsche Bahn said. The company's logistics chief, Norbert Bensel, said the inaugural journey on the new rail route had delivered

Seeking Sustainability on new fronts – Environmentally and Economically

Another new market driver is rapidly taking the main seat. The U.N.’s latest report this year on climate change declared with 90% certainty that mankind is cooking the planet. Acting now would cost 0.12% of the annual global GDP – while in contrast, the damage of not acting now could cost as much as 20% of annual global GDP. National regulations and environmental awareness has become a market driver, powered by customers and shareholders asking for change. They are now demanding sustainable, environmentally sound, fair trade practices, while expecting no less financial gains than before, for their trade and investment. Product safety & quality, fair trade strategies and environmental protection have merged to create a synergistic demand for ‘Green’ business practices adding complexity to global trade. Global warming, food and product recalls, energy costs and consumer demand for fair trade practices are driving global importers to actively manage the sourcing of their products, req