Wheat crop plants in drought land during summer season.

Argentina wheat bogged down by weather

Weather issues negatively impacted the expected wheat output of Argentina for the 2020-21 marketing year, according to a Global Agricultural Information Network (GAIN) report from the US Department of Agriculture (USDA).

The USDA expects wheat production in Argentina to fall to 17.4 million tons for the 2020-21 marketing year due to dry La Niña weather conditions, which are expected to cause losses for the next few months.

Wheat exports for the 2019-20 marketing are expected to close in November at 13.1 million tons, including flour.

The country’s corn production is projected to slip 48 million tons in the 2020-21 marketing year due to a reduction of planted area and yield. With a smaller corn crop expected, the USDA anticipates a decrease in exports of the commodity to 33 million tons.

Low water levels have taken a toll on rice planted areas in Argentina and in turn total production.  The 2020-21 marketing year rice production outlook decreased by 5% to 1.2 million tons, according to the USDA.

Unlike the other commodities, Argentina’s sorghum production increased 8% as China’s demand for it ramps up. The USDA expects sorghum’s 2020-21 marketing year production to a total of 2.6 million tons. Sorghum’s exports are expected to hit one million tons, the highest since the 2013-14 marketing year.

Previous predictions about the Argentina wheat

In august other predictions were made by the Buenos Aires Grain Exchanges, saying that dryness and unusually strong frosts and crop-eating pests could lower Argentina’s 2020-21 wheat yields by as much as 50%.

This due to areas of the Pampas grains belt was having below-normal rainfall. Planted acreage fell to 6.5 million hectares from 6.8 million as growers were nervous about the dryness.

“Estimates of potential yield losses range between 20% and 50%, in northeastern and northwestern farm areas, and in the province of Cordoba,” the report said and added that affected areas account for more than 25% of this year’s wheat plantings.

Stamp with text certified isolated on white. Certification or guarantee certificate concept. 3d

What is a geographical indication?

A geographical indication is a sign used for products that have a specific geographical origin and whose qualities, reputation, and characteristics are essentially due to their place of origin. 

To constitute a geographical indication, a sign must identify a product as originating in a specific place. Furthermore, the qualities, characteristics, or reputation of the product must be essentially due to the place of origin. Since the qualities depend on the geographical place of production, there is a clear link between the product and its original place of production.

Today we will talk a little about its function and how to obtain a geographical indication.

What is a geographical indication for?

The geographical indication serves mainly to promote a product that is part of the heritage of a country or region since it includes in the protection the place of production, the techniques developed by the producers over time, the prestige that it may have gained in the market and the price that is recognized as a result of its quality.

Consequently, the geographical indication allows the generation of value in the geographical areas that have a protected product, through increased production, which contributes to generating more employment; and the increase in the value of the lands as a result of the greater prestige and demand for the protected product. This benefits all producers who are affiliated as users of the geographical indication, contributing to an improvement in their economic income.

How is the GI constituted?

The GI is constituted by the name of a country, a region, locality, or specific place where natural, geographical, climatic, telluric, topographic, or human factors converge that make a product have special characteristics.

How do you get GI protection?

The protection of GI as property subject to domain rights, in the case of Singapore, is obtained through the declaration of protection by the Intellectual Property Office of Singapore (IPOS).

What protection does the declaration provide?

The protection of the declaration of the GI is determined by the subsistence of the conditions that motivated the decision of its declaration and only ceases to take effect through another administrative act issued by the IPOS.

The declaration of protection grants the right to exclusive use by producers, manufacturers, and artisans of the locality or region evoked by said GI; that meet the requirements for the product to have the special characteristics and include the power to prevent unauthorized third parties from using the similarly confusing sign or signs for the same goods or those competitively connected.

Smart Indian engineer man wearing safety helmet doing stock tick check and cardboard stock product management in factory warehouse background and profit chart grow up

September brought an increase in exports to Malaysia

Malaysia’s exports in September expanded by a stronger pace of 13.6% to RM88.93bil, far exceeding a Bloomberg survey of a 1.7% increase, as shipments of manufactured products jumped.

The Ministry of International Trade and Industry (MITI) said in a statement on Wednesday that the September exports were the highest export value ever recorded for this month. On a month-on-month basis, exports rose 12.4% from August’s RM79.13bil.

“Exports of manufactured goods in September 2020 which made up 87.7% of total exports picked up by 16.3% y-o-y to RM77.99bil.

“The expansion was due mainly to higher shipments of electrical and electronic (E&E) products, rubber products, other manufactures especially solid-state storage devices (SSD), iron and steel products as well as optical and scientific equipment,” it said.

Exports breakdown in September

Exports of agriculture goods (7.4% share) surged by 26.6% to RM6.55bil compared to September 2019 buoyed mainly by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (4.5% share) declined by 27.4% y-o-y to RM4.02 billion on account of lower exports of liquefied natural gas (LNG).

MITI said E&E products drove exports to ASEAN as exports rebounded by 6.7% to RM23.1bil.

As for exports to China, they sustained double-digit growth for four consecutive months, surging by 41.9% to RM15.56bil mainly on higher exports of E&E products, iron and steel products as well as palm oil and palm oil-based agriculture products.

Exports to the US continued to expand for four consecutive months, with double-digit growth of 22.1% to RM10.32bil in September 2020.

Malaysia’s total trade in September 2020 expanded by 5.5% to RM155.88bil compared to a year ago.

The trade surplus in September 2020 surged by 149.3% year-on-year (y-o-y) to RM21.97bil and was the highest trade surplus ever recorded for this month.

Compared to August 2020, total trade, exports and imports grew by 7.5%, 12.4%, and 1.6%, respectively. Trade surplus recorded a significant expansion of 66.3%.

Source: Today Online

Electricity workers and pylon silhouette

Singapore to import electricity from Malaysia

Singapore is set to import electricity from Malaysia as early as next year in a trial to diversify the country’s energy supply.

Making the announcement on Monday, Trade and Industry Minister Chan Chun Sing said: “We will kick this off by importing 100 megawatts of electricity imports for a trial period of two years to see how the market works and to see how the technical challenges can be overcome.

“This will allow the region to share the clean energy sources that different countries may have.”

He was speaking on the first day of the Singapore International Energy Week, an annual energy conference involving international policymakers and industry commentators, held in the Sands Expo and Convention Centre at Marina Bay Sands.

In a media release on Monday, the Energy Market Authority (EMA) said that it plans to issue a Request for Proposal by March next year for 100 megawatts of electricity imports. The amount is equivalent to about 1.5 percent of Singapore’s demand.

Under the proposal, electricity imports could begin as early as the end of 2021 via the existing interconnector between Singapore and Malaysia.

Does Singapore import electricity? 

More than 95 percent of its electricity is generated from imported natural gas, of which the majority is from Malaysia and Indonesia.

EMA said: “To meet our climate change commitments, there is a need to change the way Singapore produces and uses energy. Tapping regional power grids for cleaner energy resources is one strategy to further diversify Singapore’s energy supply.”

The statutory board added that the trial aims to assess and refine the technical and regulatory frameworks for importing electricity into Singapore to help facilitate larger-scale imports from the region in the future.

An importer will be selected through an open and competitive selection process. Potential importers will have to demonstrate, among other things, their track record, their ability to secure demand from Singapore consumers, and how they manage the carbon output of generation supply.

road motion blur with modern container port at dusk

Free Zones: requirements and benefits

Free zones are geographical areas of a country that is considered outside the national customs territories. In them a group of companies that can access goods of foreign origin is placed, this without having to pay customs tax.

In the international legal framework, these special zones are referred to. We invite you to continue reading to find out about the elements that constitute the free zones.

Free Zones Regime

This allows companies to make new investments in the country as long as it meets the requirements and obligations of current laws.

Also, it is necessary that the companies benefiting from this regime dedicate themselves to:

  1. Manipulation.
  2. Process.
  3. Manufacturing.
  4. Production.
  5. Repair.
  6. Maintenance of goods.
  7. Provision of services for exploitation or re-export.

Mining extraction companies, the export or extraction of hydrocarbons, production or commercialization of weapons may not be part of this, nor may financial entities be part of the free zones regime.

Those that can be part are

  • The export processing industries are those that produce or process and can also assemble for exports or re-exports.
  • Export trade consortia, which are not producers.
  • Service companies that export them physically and legally.
  • Industries that engage in scientific investment.

The companies can be located in industrial parks or it can be companies outside the park.

Requirements to be part of the Regime

The requirements are very important, according to various regulations for companies that want to enter the free zones, these are the following:

  1. A small level of investment in fixed assets.
  2. A minimum level of jobs, this is in accordance with the conditions of the company.
  3. In some way, indicate that the productive operations in a maximum of three years from the date the regime is notified.
  4. Also indicate the precise economic activities or the developer service within the scheme.
  5. Put a percentage of National Added Value.
  6. Present the environmental brand study.

In the case of companies that are Administrators and that must also present the following documentation:

  1. Master plan.
  2. Affidavit of Financial Capacity.
  3. If the property is not owned by the company, Authorization of the owner

Benefits offered by the free zones

  1. Privilege in the export of goods necessary for the operations and administrations of the companies, such as:
  2. Machinery and equipment.
  3. Manufactures and semi-finished products.
  4. Other products that are necessary for operations.
  5. Packaging and packaging materials.
  6. Privilege to import vehicles with the following characteristics:
  7. Trucks or chassis for trucks.
  8. Pick up from 1000 to 2000 kg capacity.
  9. Vehicles with a minimum capacity of about fifteen passengers
  10. Privileges on taxes on local purchases or goods or services.
  11. Export Tax Privileges.
  12. Privilege for a period of 10 years of the taxes of Transfer of innumerable assets and Municipal Patent.
  13. Remittance Privileges.
  14. Privileges of all tributes to profits, this great benefit is awarded according to the locations and categories of companies. For location cases, this determines whether the company can be located outside or within this large area.

There is no doubt that a free zones regime is an opportunity for companies. In the same way, countries obtain profits in the economic and productive sectors.

Air cargo transportation concept. Flat style illustration. Logistic concept. It can be used as -pictogram, icon, infographic element. Vector Illustration.

Air cargo transport: advantages and disadvantages

Air cargo transport is that activity that allows the transfer of goods from one country to another, using a means of transport called aircraft, either to travel long distances or to make flights in the shortest possible time; maintaining the corresponding security conditions.

The characteristic that best defines this mode of transport is that it does not need a track on the surface during its entire journey, only at the beginning and at the end. It also differs from other modes of transport in the fact that it has no physical barriers.

Today we will learn about other characteristics of air cargo transport, in addition to its advantages and disadvantages.

Characteristics of air cargo transport

One of the biggest characteristics is how different cargo planes are from commercial jets.

Cargo aircraft are often equipped with larger doors to facilitate loading and unloading. Although in many cases cargo is transported in mixed aircraft, which are commercial aircraft that transport both passengers and goods, cargo planes that are exclusively dedicated to transporting goods have certain characteristics that improve their functionality:

  • Wider fuselage than commercial or mixed aircraft to increase cargo volume and allow entry of bulky cargo.
  • Uses a large number of wheels to enable landing on unprepared or optimized runways.
  • Position of the wing at a higher height to allow the entry of goods also from the rear.
  • They have several merchandise entry doors to facilitate their access and the optimal arrangement of loads.

Advantages of air cargo transport

  • Speed: it is the fastest mode of transport that exists and, therefore, it is especially recommended when time is an important factor.
  • There are no physical barriers: thanks to this it is possible to make a journey without interruption choosing the shortest and most direct route through seas, mountains.
  • Easy access: air transport can transport goods to areas that are not easily accessible by other means of transport.
  • Ideal: it is suitable for transporting perishable or high-value goods over long distances.

Disadvantages

  • Very expensive: it is the most expensive means of transport.
  • Uncertain: air transport is conditioned, to a large extent, by weather conditions. Snow, rain, fog, etc., can cause cancellation of scheduled flights and suspension of air service.
  • Not suitable for cheap and high volume merchandise: due to its limited capacity and high cost.
  • Legal restrictions: many countries have legal restrictions in the interest of your own safety.

Do you know any other advantages or disadvantages of Air cargo transport? Leave it in the comments.

Men at container terminal

Imports increase in China on a m/m basis

China’s imports increase at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted Covid-19 coronavirus restrictions in a further boost to the world’s second-biggest economy.

Exports in September rose 9.9% from a year earlier, customs data showed on Tuesday, broadly in line with analysts’ expectations and up from a solid 9.5% increase in August.

The strong trade performance suggests Chinese exporters are making a brisk recovery from the pandemic’s hit to overseas orders.

As the global economy restarts, Chinese firms are rushing to grab market share as their rivals grapple with reduced manufacturing capacity.

“The big picture is that outbound shipments remain strong, with easing demand for COVID-19 related goods such as face masks being mostly offset by a recovery in broader demand for Chinese-made consumer goods,” Capital Economics Senior China Economist Julian Evans-Pritchard said.

“A jump in imports suggests that domestic investment spending remains strong.”

China’s factory activity has also increased as international trading gradually resumes.

But some analysts warn exports could peak soon as the demand for Chinese-made protective gear recedes and the base effect of this year’s massive declines wears off.

Imports increased by 13.2% in September, returning to growth from a fall of 2.1% in August and much stronger than expectations for a 0.3% increase. The import strength was broad-based for almost all of China’s main trading partners.

Taiwan’s imports also increase by 35.8% in September from a year ago, while purchases from the United States rose 24.7% on-year. Imports from Australia, however, fell 9.5%.

Imports increase from home

Wang Jun, the chief economist at Zhongyuan Bank, said the data showed government support for the economy has kicked in as the epidemic comes under control.

“This has boosted domestic demand, especially investment-led demand, which buoyed imports,” Wang said, adding that the yuan’s recent appreciation was positive for imports and people’s spending power.

Source: The Star

Container Cargo ship and Cargo plane with working crane bridge in shipyard background, logistic import export background and transport industry.

Maritime Vessels: what are the types?

Maritime vessels in international trade are a type of maritime transport of export goods, these are vessels carrying large amounts of weight. In addition to this, they can navigate very long distances.

Ships are classified into different categories, these categories range from cargo and passage to fishing and warfare, merchant ships belonging to the cargo category, in turn, merchant ships are also classified according to two criteria, the first criterion is the route of transport and the second cargo.

Today we will talk about the types of maritime vessels that exist, in order to learn a little about their characteristics and uses.

Types of maritime vessels

General cargo ships

Also known as a multipurpose vessel or general cargo vessel, this vessel carries out the transport of dry goods. Most of them are used for the transport of loose merchandise and do not carry out the transport of merchandise in containers, very heavy loads or special loads, like other maritime vessels this vessel is equipped with specialized equipment for loading and unloading of merchandise.

Bulk Carriers

Bulk carriers are part of the types of maritime vessels and are responsible for the transfer of dry loose merchandise, within this type of merchandise we find minerals, grains, cement, among others they also transport merchandise whose weight determines the price of the trip, as well as the previous type of ship, this also has enough equipment for loading and unloading of merchandise, which saves you the use of port machinery.

Container ships

Within maritime transport, container ships represent 52% of the transfer of all merchandise, its name is due to the fact that the cargo they transport is protected in containers, the containers can be open-top, flat rack, high cube, with the platform, tank containers and refrigerated.

Roll-on / roll-off maritime vessels

This type of maritime vessels has the function of transporting merchandise with wheels, this merchandise can be automobiles and depending on the complexity of the vessel, even trucks and heavy machinery with wheels.

Reefer maritime vessels

The merchandise transported in international trade is very diverse, for this reason, there are different types of maritime vessels, refrigerated ships have the task of transporting merchandise with special heat treatment, protected products can be refrigerated or frozen.

Oil tankers

Crude oil ships or oil tankers are intended to transport oil, in international trade these ships are the largest vessels, they are capable of transporting more than 318,000 deadweight tons.

Liquefied gas vessels

Within the merchant ships, we can also get a ship destined for the transport of liquefied natural gas or liquefied petroleum gas, this type of vessel transports its merchandise inside cylindrical tanks located on the deck of the same.

Chemical cargo ships

This type of chemical vessel is used to transport chemical products, these products are stored in stainless steel tanks or with a coating to avoid corrosion, these vessels can transport more than one type of chemical product due to their size and they have more than one tank.

Cattle maritime vessels

This livestock vessel is used for the transport of live animals, the animals that are transported are cattle, sheep, and goats, the animals are protected in two ways, the first is corrals located on decks and the second is inside the temperature regulated boat.

Ships for project cargo

These project cargo ships specialize in transporting from small vessels to larger ones that exceed it in structure, they can also transport semi-submersible vessels and oil platforms.

Foreman control loading Containers box from Cargo freight ship for import export, foreman control Industrial Container Cargo freight ship. Logistic concept.

Malaysia’s total trade was 4.6% lower on a y/y basis.

Malaysia’s total trade, exports, and imports go lower than expected in August, while the trade surplus expanded, show data revealed by the portal TODAY ONLINE.

The country’s trade surplus stretched 19.7% on a year-on-year (y-o-y) basis to RM13.23bil in August as higher exports of electrical and electronic (E&E) and rubber products cushioned the decline in overall exports.

Exports fell 2.9% y-o-y to RM79.14bil, according to the Ministry of International Trade and Industry (MITI), which underperformed the median estimate of a 4.9% expansion by a Bloomberg survey of economists.

Meanwhile, imports fell by a steeper margin of 6.5% y-o-y to RM65.29bil.

Total trade for the month was RM145.06bil, 4.6% lower as compared to August 2019.

“On a month-on-month basis, total trade, exports and imports contracted by 9.3%, 14.5%, and 2.2%, respectively. Trade surplus dipped by 47.5%,” said MITI.

Lower trade was recorded with Thailand, Bangladesh, Indonesia, and Japan while higher trade was registered with the US, China, and Saudi Arabia.

Total trade on the eight previous months

Between January and August 2020, Malaysia’s trade surplus rose 2.9% to RM102.98bil as compared to the same period last year.

Over the eight months, total trade fell 6.5% with exports sliding 5.8% to RM620.64bil and imports contracting 7.3% to RM517.66bil.

On a segmental basis in August, exports slipped following a 0.1% marginal decline in the exports of manufactured goods to RM68.57bil, mainly owing to lower exports of manufactures of metal and chemicals and chemical products.

However, the exports of E&E and rubber products rose 7.6% and 66.8% respectively to cushion the contraction.

There was also a 4.5% drop in agriculture food exports to RM5.71bil on the back of lower exports of sawn timber and molding as well as natural rubber.

This in turn was partially offset by the increase in exports of palm oil and palm oil-based agricultural products.

The mining goods segment however registered a steep 25.9% drop in exports to RM4.55bil, mainly on the lower demand for liquefied natural gas.

“Compared to July 2020, exports of manufactured, agriculture and mining goods declined by 15.3%, 13%, and 2.7%, respectively,” said MITI.

Meanwhile, the contraction in imports was underpinned by lower imports of intermediate goods and capital goods, cushioned by an increase in imports of consumption goods

The central business district skyline is seen at dusk on Monday in Jakarta, Indonesia

Patimban port to start the first phase operation by November

Indonesia aims to complete the first phase of the Patimban port on the northern coast of Java island by November, a senior minister said on Tuesday.

The 43.2 trillion rupiahs ($2.92 billion) Patimban port in the town of Subang in West Java is among the government’s priority projects in order to relieve pressure on Jakarta’s congested Tanjung Priok port.

Coordinating Minister of Economic Affairs Airlangga Hartarto said the president had called for the port to be launched in November. It is set to host a first shipment of cars after the launch, Hartarto told a streamed news conference.

Over 80% of the work on building docks and land reclamation has been completed, while construction of breakwaters and sea walls had reached almost 56%, he said.

A consortium of Japanese and Indonesian companies is building the first phase and the project is partly funded by the Japan International Cooperation Agency (JICA).

The Patimban port will improve the country’s infrastructure

The president told a cabinet meeting broadcast live that the port would improve infrastructure near the Karawang and Purwakarta industrial parks, “therefore improving the competitiveness of our export products, especially in the automotive sector.”

West Java Governor Ridwan Kamil said the port could also support his plan to establish a new metropolitan city and create five million jobs in the next 15 years.

Patimban port is one of the government’s national strategic projects, funded by an official development assistance (ODA) loan from the Japanese government amounting to Rp 14.2 trillion (US$968.5 million) for the first development phase.

The port is expected to be Indonesia’s primary export port and to ease the burden on Tanjung Priok Port and traffic congestion in Jakarta from the transport of cargo. It is also projected to support the future Rebana Special Economic Zones (SEZ) in Cirebon, Patimban, and Kertajati in West Java, along with Kertajati International Airport.

In the first development phase, Patimban Port is planned to serve 3.75 million twenty-foot equivalent units (TEUs) and accommodate 600,000 complete built-up (CBU) vehicles. Meanwhile, in the second phase, Patimban’s capacity will increase to 5.5 million TEUs and it is expected to reach its final capacity of 7.5 million TEUs in phase 3.