Block-chain benefits in foreign trade

Block-chain benefits in foreign trade

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Block-chain technology provides key functional functions that adapt to the supply chain environment and business needs in international trade and transportation.

  • Transparency
  • Auditable by third parties
  • Immutable data
  • Scalable
  • Safety
  • High degree of automation

But what do these technical characteristics mean in terms of applications and improvements to current processes?

In terms of applications, Block-chain in international trade and transportation could solve.

5 key business of the Block-chain

1. Transparent and secure paperless trading with Block-chain:

Including bills of lading, certificates and letters of credit.

Provides access to the document path and any changes to these documents, whether they are purchase orders, reservations, or invoices.

It ensures the authenticity and integrity of the documents, as well as the transfer of title. An immediate value is avoiding fraud in double billing factoring, for example.

2. Easy procurement and contracting:

The contract can be registered and converted into a “smart contract” * to allow control and automation of its execution.

Block-chain guarantees the irrevocability of these contracts.

These smart contracts can include self-executing features, including payment obligations at the granular level.

Reservation cancellation fees, as well as detention and stay expenses can be invoiced and paid in a clear and consensual way with the potential use of cryptocurrencies.

Block-chain can manage and process warranty claims quickly and automatically.

3. Real-time traceability of goods:

As well as certification of data such as certificate of origin or proof of delivery. Record digital and verifiable events.

The ability to verify the origin of products and their execution in transportation is valuable.

Especially for sensitive cargo such as medicine, food and some consumer goods.

Banks, insurance companies, customs and cross-border agencies can get immediate value in these applications.

4. Real-time traceability:

Of transactions and their correspondence with physical flows.

It can be of great help in automating business finance and asset-based inventory financing.

5. Distribution of information to a network of partners through direct processing:

This without the need for data alteration. It enables collaboration platforms and data pipelines.

Saves time and improves data quality, avoiding multiple data transfers or entries, and reduces the risk of disclosure.

Some applications can be seen in cargo release at terminals, for example.

There are multiple initiatives carried out by large companies or startups in these key fields.

However, Block-chain technology is still not enough in certain areas.

These are the challenges that will be addressed in the coming years in order to have a full implementation beyond simple proof of concept.

The main obstacles are:

  • Lack of strong governance, legal framework, and compliance
  • Lack of data controls
  • Need for standardization
  • Management of related costs and business models
Grain traffic improves in the US as temperatures rise up

Grain traffic improves in the US as temperatures rise up

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As thermometers began to elevate late last week across the US Upper Midwest, northern and southern Plains, and most of the Central states, the grain transportation logistics picture improved.

While a mid-February extended cold snap spurred conversations about potential winterkill damage to dormant winter wheat crops, grain market participants focused more on nearby logistical concerns. 

Temperatures hit a record-low -9 degrees in Kansas City on Feb. 16 and thermometers in nearby Lawrence, Kansas, US, fell to -17. Cold weather slowed movements of grain trains, at times to a standstill, due to the effects on locomotive power and rail car air brakes. Snow and ice stymied truck traffic in the Central states and Northeast, but especially in the southern Plains of northern Texas where trucks aren’t typically tuned for ultra-cold weather.

By the weekend of Feb. 19-21, overnight low temperatures had risen steadily into the 20-30 degree range from the Canadian border down to central Texas. At mid-morning Feb. 22, storm activity was limited to snowfall from Washington along the eastern seaboard to western Maine, including most of Pennsylvania and upstate New York.  Moderate to heavy rainfall was lashing the Appalachian states and scattered parts of Florida, Georgia, and the Carolinas.

Grain trains were flowing more regularly again by Feb. 19, brokers and millers said, and supplies were arriving after 24- to 36-hour delays.

“It could have been a lot worse,” a miller said.

As a considerable number of rail cars had earlier been placed at country origins in eastern Colorado and western Kansas, loading for contract applications or spot market offerings were expected to break open early this week.

Meanwhile, Class 1 railroads told market participants to expect extreme congestion and lengthy delay times through Kansas City, Missouri, US; St. Louis, Missouri, US; and Chicago, Illinois, US, gateways.

Source: WorldGraing

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

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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.

New wave of contagion impacts Singapore’s economy

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The new contagion Covid-19 outbreak has a strong impact on the national economy, due to the strict measures that the authorities of the Asian country have been forced to take.

The new cases of Coronavirus have uncontrollably continued to rise; from having nearly 300 cases in March, Singapore went on to exceed 23 thousand infections this Monday, May 11.

This new wave of contagion is basically due to the crowding in workspaces despite the suggestions of national activists due to the lack of measures that led the increment in the number of contagions.

“We are particularly concerned that it is increasingly difficult to link new cases and identify the source of infection,” said the Ministry of Communication in its most recent speech.

This situation forces the authorities to make drastic decisions to contain the expansion of the Covid-19 and, consequently, the economy will suffer a severe fall.

90% of the cases registered in the country are linked to jobs and dormitories shared by a large number of nationals and foreigners.

Most of the new cases have been confirmed among the foreign population with work permits housed in areas for immigrants. Last week, the government announced that it would transfer foreign employees to vacant government military camps and apartments.

Employees in the tourism, food and beverage and transportation industries are at the highest risk line for the pandemic said Lee Quane, regional director for Asia at the human resources consultancy ECA International.

Quane affirmed that, the employees in most of these sectors are foreigners and regularly these positions are difficult to fill by locals, indicating that the greater the outbreak and cessation of operations in these sectors the more affected the economy will be in each of these areas.

Automatic permits reduce risks in import operations

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One of the great protocols that must be complied with within the customs logistics processes in some countries are automatic permits which generate greater speed and minimize the risks within the process; to understand what it is we are going to define it in this article.

What are automatic permissions?

Basically, it is a process that allows customs authorities to obtain prior information on imports of certain goods so they perform a risk analysis of the operation that will be executed.

Importance of automatic permits

This type of permits works as part of the trade facilitation scheme in each country; the automatic notices and permits allow the customs authority to carry out better statistical control of import and export operations.

One of the countries that applies the use of automatic permits is Mexico, here are some of the requirements that apply to request this procedure.

• Merchandise description.

• Commercial brand (s) and models.

• Type of customs office of entry.

• Tariff code.

• Rate measurement unit.

• Commercial invoice number.

• Issue date of the commercial invoice.

• Marketing unit of measure according to the commercial invoice.

• Quantity (volume) to be imported according to the marketing unit of measure.

• Conversion factor.

• Marketing currency according to the commercial invoice.

• Total value of the commercial invoice in terms of the marketing currency.

• Value of the merchandise to be imported according to the commercial invoice in terms of the marketing currency.

• Exporting country to the national territory.

• Country of origin of the merchandise.

The purpose is to use this information as an instrument to prevent and combat recurrent harmful practices such as the incorrect classification of goods, undervaluation and triangulation of origin of the same which may affect the operation of strategic industries for national economic activity. 

What happens if I do not comply with this procedure?

It is important to consider that failing to apply for permits and notices can lead to delays in your shipments at the customs of the Tax Administration System of each country.

The requirements to manage this type of permits vary according to the type of product or merchandise to be imported, and it only applies to the definitive import regime, meaning, the entry of a product or merchandise from a foreign origin into the country for a definite time and it must be managed for each tariff code.