The U.S. trade war with China resulted in a 7 percent drop in goods exports -- $9 billion worth -- from 2017 to 2018, according to a new report from the U.S.-China Business Council. Even with the drop, the U.S. exported more to China in 2018 than it did in 2016. The report blamed China's retaliatory tariffs on about 85 percent of U.S. exports for the decline.
Maersk will offer a new customs clearance online shipping management platform in Germany, France, Denmark, the Netherlands, Poland, the United Kingdom and Spain, the company said in a news release. “This new one-stop-shop allows us to timely and efficiently handle export and import declarations for our customers," said Vincent Clerc, chief commercial officer of A.P. Moller-Maersk. "The solution provides downstream benefits of full governance and compliance, eliminates the need to provide a quote as pricing is displayed online, saving three to five minutes per quote.” The company plans to expand the service to the rest of the world by the end of the year. "It saves our customers time, money and headaches reducing the number of intermediaries they deal with from three or four to just one as well as paperwork which subsequently reduce the time spent on transactional procedures," Clerc said. "Time saved they can then devote to grow their businesses.”
The U.S. consumer technology sector exported $172.4 billion worth of goods in 2017, said a PricewaterhouseCoopers economic-impact report commissioned by the Consumer Technology Association. PwC, using the Census Bureau’s “origin of movement” (OM) data, estimated Texas was the top export state with shipments of $44.8 billion, followed by California ($35.7 billion) and Florida ($12.3 billion). Canada was the top market for U.S. consumer tech sector goods, followed by the Netherlands and Germany, it said. There are “limitations” to using OM data for the analysis, the report said. One is that it doesn’t cover services exports, another is that its focus is on “the transportation origin of exports, as opposed to the production origin,” it said. This runs the risk it will “misallocate credit for certain exported goods to states where there are major export hubs,” it said. “However, we are not aware of another data set that provides better visibility” into state- and product-specific “trade flows,” it said.
UPS, “like most other U.S. multinationals,” advocates for “fair and balanced trade,” CEO David Abney said on a Q1 earnings call April 25. The China-U.S. trade “uncertainty” is “prompting softer industry forecasts” in the Asia-Pacific region, he said. “We certainly encourage leaders of the two countries to find solutions that support increased two-way trade,” and also “assuring that many U.S. companies have access to export to China,” he said. Some UPS customers “have adjusted their supply chain” to mitigate the higher costs of the Section 301 tariffs and retaliatory Chinese duties, and to “adapt to changing trade dynamics,” he said. China economically “is still strong, maybe not as strong as in previous years,” he said. There are “a lot of developments” taking place in two-way trade between the U.S. and China, but also between “China and the rest of the world,” he said. That “sometimes gets lost in the China-U.S. discussions,” he said. “We think it gives us plenty of opportunities to focus and to apply our strategic imperatives” in e-commerce, he said. “We feel good about the economy for the rest of the year.”
Rhenus Logistics of Germany acquired Freight Logistics, which is based in Miami, Florida, Rhenus said in a news release. “The acquisition of Freight Logistics is an important step for us in expanding our business activities in the Americas region and follows our latest acquisition of Rodair in Canada in the beginning of 2019," said Jorn Schmersahl, CEO of Rhenus Air & Ocean Americas. "These steps enable us to consolidate our network there and to serve both North America and the Latin American region from Miami as our new gateway. This will help us live up to our goal of being globally oriented and we can establish more links between the continents.” Financial terms of the deal weren't released. Freight Logistics "specializes in supply-chain solutions, international transportation (air & ocean), customs brokerage, compliance, warehousing and distribution," Rhenus said.
FTI Consulting will now offer services related to export controls and sanctions compliance, the company said in an April 16 news release. "The Export Controls and Sanctions offering at FTI Consulting includes compliance program assessment and design, implementation and remediation; investigations and disclosures; independent monitoring or related support services; supply chain and third-party risk management; trade control audits and reviews; license application preparation and license management support; de minimis calculation analysis; deemed export control reviews; wind-down support for sanctioned country operations; and compliance crisis management," the company said. FTI hired Matthew Bell, who previously worked as chief export compliance officer at ZTE, as senior managing director to lead the new effort. “The complexities and changing nature of export control and sanction regulations require companies to undertake vigilance, ongoing training and continuous process improvement, particularly as governments have signaled additional enforcement and trade disputes have increased,” said Paul Ficca, global leader of the Forensic & Litigation Consulting segment at FTI Consulting.
Applied Materials ordered staff to suddenly stop doing business with customer Xiamen Sanan Optoelectronics, a day after the Chinese LED chip maker appeared on a U.S. government “unverified list” of foreign entities (see 1904100017), according to a Nikkei Asian Review report. California-based Applied supplies semiconductor production equipment and large-area deposition systems for LCD and OLED display manufacturing. Xiamen Sanan describes itself as China’s “largest LED epitaxial wafer and chip manufacturer, endeavoring to become top 1 in the global LED industry.” Applied didn't comment. Efforts to reach Xiamen Sanan, whose shares are listed on the Shanghai stock exchange, were unsuccessful.
Near North Customs Brokers acquired two Canadian brokerages within the last month, the company said in an emailed news release. "Alliance Border Services of Delta, B.C., and ISL Customs Broker, a division of Island Shipping Ltd., of Nanaimo, B.C., were both acquired within weeks of each other" as part of a "strategic push to further strengthen its portfolio and reach across British Columbia," Near North said. Terms of the deals weren't released. All employees of Alliance Border Services and ISL employees joined Near North Customs, it said. ISL will continue to "function under its own name out of Nanaimo, a highly strategic location in the customs brokerage arena."
Livingston International will take part in blockchain pilot involving the Canada Border Services Agency, the company said in an April 3 news release. The pilot will use TradeLens, a "blockchain-enabled digital shipping solution jointly developed" by IBM and A.P. Moller-Maersk, it said. "Livingston will serve as the first customs broker to leverage the TradeLens platform for brokerage automation," the company said. "Livingston's role in the pilot will be to enter and access information on shipments and streamline internal procedures without compromising accuracy or security. The CBSA is participating in the TradeLens pilot to determine what role the platform could play in its business processes."
Noatum Logistics reached a deal to acquire MIQ Logistics, the companies said in a March 21 news release. MIQ's workforce will be integrated with Noatum, a division of Noatum Maritime of Spain, "as there is no geographical overlap except in Chile, where the services complement each other," the companies said. The acquisition is expected to close in the "coming weeks." Terms of the deal weren't released. MIQ is based in Kansas and has more than 60 offices in 19 countries. "Together, we will be able to grow more quickly, ensuring our employees and clients’ satisfaction at all times," MIQ CEO John Carr said. "This is the right move, at the right time with the right company.” MIQ is owned by private equity firm Austin Ventures.