@Risk

Global trade activity held steady in July –and that’s certainly good news. But does a “holding steady” trend like this signal a robust recovery? Panjiva doesn’t think so.

The latest report from Panjiva shows that last month there was a 0.2 percent increase in the number of global manufacturers shipping to the US market, and a 0.5 percent increase in the number of US companies receiving waterborne shipments from global manufacturers. In addition, Panjiva found that: (more…)

After months of working with the cargo and aviation industries, the Transportation Security Administration (TSA) announced last week that it has met a key requirement of the 9/11 Act by screening 100 percent of air cargo on domestic passenger aircraft.

That’s welcome news, considering Congress had established an August 1, 2010 deadline for this requirement.

To meet the mandate, TSA created the Certified Cargo Screening Program (CCSP), which allows certified facilities across the country to screen cargo before it reaches the airport. Prior to the August 1 deadline, over 900 facilities became CCSP certified, and according to the TSA, this distributed screening effort has enabled over half of the more than 9 million pounds of cargo loaded onboard passenger-carrying planes each day to be prescreened, avoiding potential bottlenecks at airports. (This is an important point, because as you may recall, TSA has been criticized for not developing strategies sufficient to prevent supply chain disruptions that would disturb the flow of commerce. )

The CCSP initiative is part of TSA’s multi- layered approach to air cargo security. The agency’s program now includes: (more…)

Analysts estimate that India’s retail sector is worth $450 billion. However, India’s government has kept this giant marketplace largely closed to foreign firms.

Could all that be about to change?

Late last month, Indian officials circulated a discussion paper about easing up on the restrictions, and not surprisingly, that move has ignited international debate. As it stands now, overseas firms can only operate in India as wholesalers and they are required to partner with domestic firms. But, a few weeks ago, Walmart said it could open “hundreds of stores” in India if the country unlocked its retail sector to foreign investors.

Of course, achieving that goal would require significant improvements to the supply chain. As Reuters points out,  “in a country where at least 40 percent of produce is wasted because of inadequate storage and transportation, large investments in warehouses, refrigerated trucks and other amenities are needed.”

Currently, organized retail accounts for only 6 percent of the total retail sector in India. The remainder is in the hands of “mom and pop” shops, which rely mostly on farmers and other local suppliers. Overhauling the system to accommodate retailers like Walmart could take years. In fact, the managing director and chief executive of one of the few Walmart wholesale ventures allowed in the country, predicts India needs at least a decade to establish a supply chain of “international quality and standard.”

A decade and plenty of foreign capital, that is. What investment –in time, effort and resources –would you be willing to make in order to gain market share in the world’s second-fastest growing major economy?

About a year ago, Maersk was named Sustainable Shipping Operator of The Year in recognition of the efforts the company has made to reduce the environmental impact of its business operations. In particular, the award recognized Maersk’s pioneering efforts on the sometimes controversial shipping method known as “slow steaming.”

As the name implies, slow steaming ships travel at reduced speeds, saving fuel and reducing greenhouse gas emissions. The approach is relatively straightforward and quite effective, and in fact, slow steaming has proven so successful that now many major companies have throttled down even more. These days, they’re “super-slow steaming” and traveling at speeds of only 12 knots (about 14mph).

While there’s no doubt that super-slow steaming saves fuel, cuts costs and lowers emissions for shippers, I have to wonder: What is the effect on buyers? How does slow steaming impact order cycle times, inventory management and supply chain efficiency, in general? (more…)

Imports into the Port of Los Angeles were up 32 percent last month, compared to June 2009, and exports also finished strong, up about 12 percent over the same period last year.

In addition, the Port of Los Angeles website reports that for June 2010: (more…)