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India’s trade growth remains buoyant thanks to strong ocean trade 

Strong ocean imports and exports will sustain India’s trade growth over the three-month period ending in January 2020, making it the only country out of the world’s seven largest economies with a positive trade outlook according to data from the DHL Global Trade Barometer released by DHL

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India's trade growth remains buoyant thanks to strong ocean trade 
India's trade growth remains buoyant thanks to strong ocean trade. Image: DHL

Strong ocean imports and exports will sustain India’s trade growth over the three-month period ending in January 2020, making it the only country out of the world’s seven largest economies with a positive trade outlook according to data from the DHL Global Trade Barometer released by DHL, the world’s leading logistics company.

The DHL Global Trade Barometer, an early indicator of global trade developments calculated using Artificial Intelligence and Big Data, predict mildly positive growth for Indian trade with the country’s Index rising five points to 54.

The positive outlook is driven primarily by an uptake in ocean imports of Basic & Industrial Raw Materials and Chemicals & Products, coupled with a gradual revival in air exports of Consumer Fashion Goods.  In total, ocean trade grew by 10 points, maintaining India’s positive outlook even as air trade forecasts experience relative weakness.

India' trade growth remains buoyant thanks to strong ocean trade. Image: DHL

India’s trade growth remains buoyant thanks to strong ocean trade. Image: DHL

 

“India has the strongest trade forecast this quarter and the highest index value of all countries in the latest Global Trade Barometer survey, followed closely by the United Kingdom and Japan,” said Niki Frank, CEO, DHL Global Forwarding India. “This highlights the underlying potential of India’s economy, which will benefit from the government’s plan to invest US$1.39 trillion (€1.26 trillion) in infrastructure projects. The country’s commitment to establishing itself as a strategic maritime hub with initiatives and investments in coastal infrastructure appear to be supporting the Index’s positive ocean trade outlook and will likely also contribute positively to longer-term trade growth.”

Steady but mild decline negatively affects all countries, except India

The Barometer’s results also suggest that world trade is expected to continue at moderate pace but further contract for the next three months, driven by minor decreases in both air and containerized ocean trade. Against previous quarters this year, the downward trend in trade growth remains mostly stable, neither indicating an acceleration of the decline nor a bottoming out of contractionary movement. All seven nations monitored by the Barometer received indexes below 50 points except for India, where the Barometer forecasts moderate growth of five points to 54 points for India. While Japan and the UK had been the only countries with positive trade outlooks in the previous update in September, the two countries record the highest losses in this period.

“According to the DHL Global Trade Barometer the year will probably end with moderate world trade. However, we’ve to bear in mind where we come from: The rapid growth world trade has undergone in recent years was like climbing the Mount Everest. Now, we are on the descent, but we are still breathing altitude air”, Tim Scharwath, CEO of DHL Global Forwarding, Freight, says. “A countless number of stable trade relations continues to flourish worldwide, despite smouldering trade conflicts and geopolitical uncertainties.”

Container Terminal

SAAM agrees to acquire 70% of Intertug, a towage operator in Colombia, Mexico and Central America

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SAAM agrees to acquire 70% of Intertug, a towage operator in Colombia, Mexico and Central America. Image: SAAM
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Sociedad Matriz SAAM S.A., through its subsidiary SAAM S.A., signed an agreement with the shareholders of Intertug Investment Holding S.A, a towage services company operating in Colombia, Mexico and Central America, to acquire 70% of the company. The acquisition will be a combined capital increase and share purchase.

Intertug has more than 25 years’ experience providing harbor towage, offshore and special services in Colombia, Mexico and Central America. Its 25-vessel fleet logs more than 18,000 maneuvers a year, generating around US$44 million in towage service revenue annually.

“The partnership with Intertug allows us to enter Colombia, one of the fastest growing economies in Latin America, and to reinforce our presence in Mexico and Central America”, remarked SAAM’s CEO, Macario Valdés.

The executive also explained that “this transaction is consistent with our growth and internationalization strategy and is complemented by the acquisition of 100% of the operations in Canada, Mexico, Brazil and Panama, and our recently announced entry into El Salvador. Therefore, we will continue to strengthen the service we provide our customers by integrating SAAM Towage’s single operating model and broad coverage with our partners’ recognized experience in the local market”.

SAAM Towage continues to consolidate its position as the largest tug operator in the Americas and one of the leading providers in the world; with this purchase, it will operate a fleet of more than 170 tugs in 11 countries.

This agreement is subject to approval from regulatory authorities and compliance of other conditions that are customary for this type of transaction.

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Freight Forwarding

Dimerco and Elanders enter joint venture for air and sea freight forwarding business

Dimerco Express Group will announce a joint venture with 25% investment in the newly founded German subsidiary of Swedish public company Elanders Group, ITG Air & Sea GmbH.

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Dimerco and Elanders enter joint venture for air and sea freight forwarding business. Image: Pixabay
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Dimerco Express Group will announce a joint venture with 25% investment in the newly founded German subsidiary of Swedish public company Elanders Group, ITG Air & Sea GmbH.

ITG Air & Sea GmbH is a spin-off of ITG GmbH Internationale Spedition + Logistik (ITG), which was launched November 1st 2019, enabling ITG and its parent company Logistics Group International (LGI) to concentrate on its core competencies, offering a further enhanced integrated logistics service. Both ITG and LGI are part of the Elanders Group.

Dimerco has enjoyed a successful business partnership with ITG for over 25 years. This latest strategic investment will strengthen mutual cooperation and will increase Dimerco’s ability to serve customers better, as well as expanding business by leveraging German based LGI and ITG, and Swedish based Elanders’s logistics capabilities to advance its global presence.

Moreover, Elanders Group will be able to improve service capability across Dimerco’s network in Great China, Asia Pacific, India and North America, spanning over 160 locations. In addition, Dimerco Value Plus System® will enhance its service capability to grow the business further for a win-win effect.

Dimerco’s newly restructured Business Intelligence Technology (BIT) Division, focusing on the development and application of its own Dimerco Value Plus System® which operates on web.3.0 cloud network and offers the mobility to operate and service customers in any location and at any time, when there is internet connection. This rapid and comprehensive improvement of AI technology, application of Big Data and Semi-Automation technology in the Internet+ environment underpins Dimerco’s re-positioning of the company as a “Mobile Intelligence Logistics Service Provider”.

Headquartered at Schwaig near Munich Airport, ITG is an entrepreneurial logistics service provider with 12 branches and 7 logistics centers in Germany, the Netherlands, USA and Russia, it provides a customized service to clients across the fashion, textiles, cosmetics, lifestyle & luxury brands sectors, also specializing in promotions and merchandising sectors.

Elanders is a Swedish public company and with its subsidiary LGI, offers integrated and customized solutions for handling all or part of the customer’s supply chain. Elanders can also take complete responsibility for complex and global deliveries that include purchasing, storage, configuration, production and distribution. The company has close to 7,000 employees in 20 countries on four continents and annual sales of EUR 1.1 billion. Significant markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA.

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Air Freight

Davies Turner Ireland gains Authorised Economic Operator (AEO Customs) Accreditation

Davies Turner Ireland (DTI) has been granted Authorised Economic Operator AEO (Type C) status by Irish Revenue, which entitles the company to benefit from the full benefits available under customs simplified procedures.

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Davies Turner Ireland gains Authorised Economic Operator (AEO Customs) Accreditation
Davies Turner Ireland gains Authorised Economic Operator (AEO Customs) Accreditation. Image: Flickr/ Graham Richardson
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Davies Turner Ireland (DTI) has been granted Authorised Economic Operator AEO (Type C) status by Irish Revenue, which entitles the company to benefit from the full benefits available under customs simplified procedures.

The authorisation comes just under 10 years after the company’s UK parent company, Davies Turner Plc achieved full certification (Type F) for all Group services including air freight, ocean freight, overland trailer or intermodal services, Customs warehousing, supply chain management and project forwarding.

In April 2008, Davies Turner Air Cargo was the first part of the group, and one of the first businesses anywhere, to gain full AEO accreditation as a stand-alone operation.

Philip Stephenson, Chairman of Davies Turner, welcomed the latest recognition achieved by Davies Turner Ireland and praised the joint efforts of management and staff in working closely with the Irish Revenue to achieve it:

“Our air cargo colleagues back in April 2008 were amongst the first off the starting block with AEO accreditation. We soon realised this was only an interim step on the journey to having full accreditation covering all Davies Turner & Co’s services.

“For our customers we have seen benefits from having AEO status, in terms of guarantee waivers and Customs facilitation, as with CFSP, for example.

“The AEO regime is one of a series of measures being co-ordinated by the World Customs Organisation as part of a multi-layered and long term approach to facilitating international trade whilst making supply chains more secure and controlled from origin through to final destination.

“The scheme provides legitimate businesses with a quality mark subject to regular audits, which demonstrates the integrity of their internal controls and systems, as well as ensuring that staff training and Customs procedures are effective and compliant.

“Some of the tangible benefits we have seen from AEO accreditation include fewer physical and documentary examinations of cargo, priority use of non-intrusive inspection techniques when examination is required, and priority processing by Customs whenever security awareness is heightened and Preferred or Trusted Trader status becomes decisive.”

Davies Turner Ireland’s accreditation was achieved as a result of introducing a new management system based on those already used by other members of the Davies Turner group for ISO 9001 to provide a structure for compliance with the requirements for AEO.

Every single member of Davies Turner Ireland’s staff was involved in this process, with support being provided by directors, managers and staff from the rest of the group to ensure the Dublin-based subsidiary and staff who worked to good effect on this project, were well prepared for the Irish Revenue audit.
DTI also provides overland, air and ocean freight services combined with logistics support throughout Ireland and worldwide as well as supporting the services linking up with Davies Turner’s freight hubs throughout the UK. Dublin staff did particularly well in taking on the challenge of introducing a quality assurance system, attending internal and external training courses as well as participating in internal audits to ensure evidence of compliance for Irish Revenue.

Stephenson concludes: As the Brexit process and uncertainty continues, Irish businesses will need to continue preparing for potential changes in exporting or importing with the UK, as and when the UK finally leaves the EU.

“If the UK leaves the EU Single Market and Customs Union with no deal in place, all trade between Ireland and the UK will require full customs clearance and tariffs would be imposed on Irish exports to the UK and imports from the UK into Ireland. Fortunately that’s now considered less likely.

“Whilst AEO status does not eliminate possible tariffs on importation of goods, it can significantly help mitigate non-tariff costs associated with international trade in particular simplifying the importation and exportation process and bringing faster and more efficient clearance of goods at Customs frontiers. As such it should help with any land-border between Ireland and the UK, as well as trade with or transiting the rest of the UK across the Irish Sea.”

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