APEC favors eliminating trade barriers

U.S. President Barack Obama formally opened the 19th annual summit in Hawaii of Asia-Pacific leaders on Sunday, November 14th ,  one day after securing agreement on the outlines of a deal to create a huge Pacific Rim free trade zone.

The leaders of the 21-member Asia-Pacific Economic Cooperation agreed to adopt market-driven innovation policies, reduce tariffs and eliminate other barriers to trade in environmental goods and services, and improve regulation to reduce unnecessary burdens on businesses.

Expanding export opportunities in the world’s fastest-growing regions will help U.S. growth and jobs.

The Heads of State and Government of the 21 APEC countries reached the conclusion that world trade should be further liberalized amid global economic uncertainty

According to a source in the APEC secretariat, Russia will host the Asia-Pacific Economic Cooperation (APEC) summit on September 8-9, 2012 in Vladivostok.

As a host country for APEC-2012, Russia has already outlined the agenda of the future meeting. It will mainly consists of the same issues tacked in Honolulu this weekend. Some of them are access to financial services and also the development of treasury economic system in the region.

Delays in Alashankou and Dostyk

As our partner TCR reports, there are currently delays at the crossing of Alashankou and Dostyk due to the large volumes of containers coming in from Qingdao and Lianyungang.  There are currently 4,700 TEU in Qingdao and 8,064 TEU in Lianyungang. Reloading between Alashankou and Dostyk is still very slow with daily capacity of just about 200 wagons and the loading process to reaches up to 15 hours per train.

We expect railcars to be shipped out as following:

Arrival to Huangdao in August 2011 => dispatch by rail in November, 2011

Arrival to Huangdao in September 2011 => dispatch by rail in December 2011 – 10th January, 2012

Arrival to Huangdao in October 2011 => dispatch by rail after 10th January, 2012

In order to ease the congestion, it has been proposed that the entire railway be on one information system which will allow the railway and customs to have the ability to have smoother communication but up to this point, it has not been created.

We shall keep you duly informed of new developments!

Maersk Triple E Set to be World’s Largest Ship

Economies of scale are about to raise one the largest ships in the world which will be launched by Maersk. An order of twenty newest Triple E container ships is coming from Korea’s Daewoo Shipbuilding & Marine Engineering Co., Ltd. These ships will have a great capacity of 18000 TEU (twenty foot equivalent) containers on a ship 400 meters long and 59 meters wide which would take a train over 68 miles long to carry a similar tonnage.
The service would run through Asia-Europe and would reach Spain from Shanghai in 20 days. The ships are eco-friendly and will sail at the lowest speed to reduce fuel consumption and CO2 emissions. They are designed and built entirely to be recyclable and to contain all necessary information about their disassembling & disposal process.

Strike at Barcelona Port

The Port of Barcelona is currently occupied by independent truckers who went on strike to demand guaranteed rates for their services without which they feel they are not able to compete with the large trucking companies who are more capable in dealing with diesel fuel price fluctuation. The Catalan government has not proposed any resolution and is planning to reach an agreement shortly. That being said, some negotiations were made with non-striking unions to relieve taxes and trucking processes to soften the blow of rising fuel prices. The port did not stop its operations and there are no pending shipments were delayed by the strike.

Marine insurance keeps you protected

How do you ship your merchandise worry and stress free? With recent shocking news about piracy and hijacking it has become more complex to find trust and reliability of shipping cargo. However, life goes on and you need to transport your goods. How would you protect your safety in shipping endeavors? Is it possible to completely secure your cargo and what would happen if the goods will get damaged?

The answer to all these questions is marine insurance.  Marine insurance used to cover the loss or damage of the shipment, cargo or other transport by which goods are transported from one destination to another. Acquiring marine insurance services means that all the goods, vehicle and other merchandise will be transported safely and with complete security. Under certain rules in international shipping and trade your company should provide a purchase of transportation insurance. Different options are available when choosing your coverage. For example, Cost Insurance Freight (CIF) would cover your cargo if you’re transporting your products to Europe. It is means that you must pay for international transport plus shipping insurance.
FOB terms (Free On Board) are the terms that apply to the important merchandise for which the seller is responsible up until they are loaded on board as cargo at the port of origin. In this case the seller is free of responsibility for the cargo while it is in transit. Since the company has already paid for the cargo which may never arrive, it would be prudent to acquire transport insurance to cover for the risk of loss or damage.
It is optional to use individual watercraft insurance. This type of protection targets non-commercial usage watercraft and it covers property losses and cargo liability coverage. Automobile industry can use a Hull and machinery (H&M) insurance which covers loss of complete ship and not just part of it.
Many other insurances exist which will give you peace of mind and satisfaction with your shipment.

Always remember to ask your shipping company about types of coverage available. RCL is ready to answer all of your questions and offer professional solution to move your cargo from one place to another.
While the acts of piracy within the shipping market have been included within the insured perils, there has been reluctance to allow an all too easy recovery of such claims due to the common and civil law jurisdictions. Piracy, however, is to remain an insured danger as otherwise the consequences would be detrimental.

11/02/2011: Port of Oakland Protest

The Port of Oakland was shut by protestors in support of the Occupy Wall Street movement on Wednesday. Several thousand protesters gathered together outside the nation’s fifth-biggest harbor. Occupation of the Port lasted for five hours by blocking exits and streets with illegally parked vehicles which caused all evening operations to be shut down.  The protesters were expressing dissatisfaction over closure of homeless aid program by blocking the street and were tossing dumpsters, trash bins and sparking bonfires at least as high as 15 feet in the air. Dozens of protesters were eventually arrested.

The port’s main exports are mainly to Asia and range from wine, fruits and nuts and handles imports such as manufacturing equipment, cars and parts from Toyota, Nissan and Hyundai. Financial losses from the closure are not available yet but will certainly harm all companies involved. The impact of the protest will be a significant loss in revenue for all logistic businesses in both private and commercial sectors.

Remembering Steve Jobs

“That’s been one of my mantras — focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”
– Steve Jobs

Steve Jobs was one of the greatest disruptive innovators of all time. His innovations completely changed how all of us function on a daily basis. We think of Steve Jobs as a technology innovator, but think about his innovations beyond technology such as supply chain, business model and process innovation.
Apple has built an effective innovation system to harness creativity in its people, stimulate new ideas, streamline design process, and launch successful, profitable new innovations.
Apple has always shipped its own proprietary software. What Steve recognized earlier than any other computer make that the value of the computer comes from the software, not the case or power supply. Apple has always been a system integrator, a crucial approach to open innovation in component-based industries.
The Apple 1, II, Macintosh and other products were made out standardized components, including CPUs from MOS Technology and Motorola. With the rise of global supply chains during the 1990s we take that for granted that this is normal, but it was certainly not normal in the 1960s and 1970s for market leading computer companies like IBM and DEC.
Apple is not just beating its rivals through superiority in design; Steve Jobs’ deep experience in hardware mass has been brought to bear in creating an unrivaled exclusive supply chain of advanced technology literally years ahead of anyone else on the planet.
The supply chain model is changing. Everyone today wants to be like Apple. What’s the secret? There are a few reasons. First, Apple has remarkably few products. Apple is so focused on what it does best, it’s able to streamline its operations and specialize in doing what it does better than anyone else. Because it has such a small product lineup, Apple can also develop exclusive relationships with its suppliers. Material for their product comes from 3 countries: Taiwan, Singapore and USA, traveling to China to be assembled, inventoried, and then fulfilled to retailers and to customers via purchases from the Apple Store.
Today we are reading about Steve Job as an innovator. I don’t really see his product innovation prowess as the characteristic that sets him apart from the rest. It was his ability to pull it all together–design, manufacturing, cost, supply chain, marketing, financing, distribution–all of it. And he did it with genuine passion for creating a better quality of life.
The few individuals who have the ability to innovate and create things that we didn’t realize we needed–and then deliver them on a massive scale in a way that impacts millions of people’s lives–are those very rare people who will be admired for generations: Thomas Edison, Alexander Graham Bell, Henry Ford … Steve Jobs