@Risk

Mounting tensions with Iran have many keeping a watchful eye on global energy prices. However, Iran is not the only potential trouble-spot.

The results of Maplecroft’s Resource Nationalism Index show that a full 44 percent of global oil production currently occurs in countries that pose a ‘high’ or ‘extreme risk’ of resource nationalism. In fact, the list includes eight of the twelve members of OPEC .

As Maplecroft defines it, resource nationalism is a rising phenomenon where governments of countries hosting large reserves of natural resources try to secure greater economic benefit from their exploitation or leverage political gain through restricting supplies. This not only has operational and financial implications for extractive companies operating in these countries, but it could create further instability for the global energy markets.

The Resource Nationalism Index identifies the risk of resource nationalism across 197 countries.

Maplecroft included nine countries in the “extreme” risk category: (more…)

The vast majority of the world’s consumers are located beyond the borders of the US, and yet only 24 percent of the nation’s small and medium-sized businesses currently are engaged in global commerce, according to new research released a few weeks ago by UPS.

The online survey, which polled 1,082 US small-and medium-sized businesses last August, was designed to measure current perceptions of global trade, identify export barriers and uncover potential strategies to overcome these barriers so SMBs can become more engaged in global trade. The results showed that:

(more…)

Could the unrest in Egypt disrupt activity through the Suez Canal?

Last week, Gen. James Mattis, head of the US Central Command responsible for military operations in the region, called closure of the Suez Canal “inconceivable.” Still, if there did happen to be any disruptions, he said the US would respond “diplomatically, economically, militarily.”

Although supplies traveling through the port of Suez have not been disrupted, rising tensions are forcing several shipping companies to modify their operations. For example, some companies have ordered ships not to change crews in Egypt, and port employees must leave their posts early to comply with the government curfew that begins in the late afternoon, according to The New York Times.

Will your supply chain be disrupted? Are commodity prices likely to rise? (more…)

New results from the latest edition of Capgemini’s Global Trade Flow Index show continued growth.

Every quarter, the index tracks the trade of goods and services based on an analysis of a number of trade and market-related parameters. The input data comes from the latest available official figures (related to the import and export of goods and services) from national agencies of the 23 top countries in terms of global trade in global trade flows. The latest results reveal: (more…)

The World Shipping Council (WSC) and the International Chamber of Shipping (ICS) want all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

In a joint statement issued last week, the WSC and ICS urge the International Maritime Organization (IMO) to establish an international legal requirement that all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

According to the WSC and ICS, In the absence of a legal requirement that marine terminal operators perform a weighing function for all loaded (“stuffed”) containers before vessel loading, it seems likely that a significant number of unweighed and overweight containers will continue to pose a risk to safe ship operations, to ships’ crew, and to other personnel in the transport chain. In addition, overweight containers threaten operational reliability and add to liability claims, operating costs, and administrative expenses.

Specifically, WSC and ICS propose that: (more…)