Shippers continuously look for methods to save costs, increase efficiency, and adapt to the ever-changing global market. Shippers are increasingly turning to digital payment methods to eliminate print, texts, calls, and emails in favor of a more efficient, tech-enabled method, whether they're attempting to deal with tariff changes, keep up with shifting client preferences, or reduce expensive transportation costs.

Below are five important ways digital payments improve efficiency in logistics.

Streamlined Employee Administration
Historically, logistics staff provided invoices for expenses incurred, which were then examined by administrators and compensated. Several digital payment platforms are capable of automating, monitoring, and streamlining transportation accounting. The logistics industry is the best place for RFID-based smart cards with chips that don't need to be touched.

Less Operational Disruption
The act of taking cash or checks for payments causes problems. Suppose a warehouse doesn't accept credit cards, for instance. In that case, a driver will need to leave the premises to withdraw cash, or if an operator pays in cash, a warehouse worker will be required to take time to make change, both of which will slow down procedures and divert resources away from more tactical and strategic endeavors.

Avoiding Lost Payments
Payment processing is simplified for all parties involved when invoicing, tracking, and collection is done digitally. Neither the customer nor the business needs to worry about losing a paper invoice or receipt, and the process of collecting money is simplified.

Improved Security And Transparency
Innovative payment platforms, especially those powered by blockchain technology when cash payments are made because they are untraceable and hard to track down. The increased transparency and traceability of digital payments reduce fraud and theft opportunities.

Minimize Human Negligence, Corruption, and Error
The use of digital payment methods not only makes paper checks easier on businesses but also lessens businesses' overall dependency on paper. This involves eliminating the need for paper invoices, data entry by hand, filing away outdated records on paper, and other touchpoints that might lead to mistakes or theft.

Conclusion
Organizations that shift to digital payment methods have more opportunities to improve the efficiency of their supply chains. Any web-based B2B system that can generate invoices and accept electronic payments is considered part of Electronic Invoice Presentment & Payment (EIPP).

Stay Tuned with EXIMA
Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!


#EXIMA #digitalpayments #logistics #efficiency #paymentprocesses #physicaldocumentation #transactions #costs

Members of the European Parliament (MEP) have called for the world’s first mandated targets for the use of renewable fuels in the maritime sector to be written into law: With the adoption of the new set of policy targets and penalties, the EU parliament is ready to begin negotiations with member states to finalise the FuelEU Maritime regulation.

2% of Shipping's Fuels Green by 2030, 80% less GHG by 2050

On 19th October 2022, with a more than two-thirds majority, MEPs set the target for the use of renewable fuels by maritime vessels at 2% of total fuel used by 2030. In addition, MEPs are seeking to mandate the use of onshore power supplies for both container and passenger ships at berth in ports.

By a similar voting margin, The EU Parliament also increased some of the European Commission’s proposed mandates for cuts to greenhouse gas (GHG) emissions from vessels. Ships with over 5,000 Gross Tonnage (GT) trading in the EU are expected to reduce emissions by 2% by 2025, 20% by 2035 and 80% by 2050, as compared with 2020 levels.

Previous EU targets were 13% and 75% for 2035 and 2050, respectively. The mandates would apply to 100% of energy used on vessels in or transiting between two EU ports and 50% of energy used on vessel voyages with departure or arrival ports outside the EU.

The parliament voted in favour of introducing penalties against operators who breach the targets, with revenues from the penalties to be funnelled into a fund to support maritime decarbonisation, energy efficiency and the

With the adoption of the new set of policy targets and penalties, the EU parliament is ready to begin negotiations with member states to finalise the Fuel EU Maritime regulations. which is part of the Fit for 55 package of legislative proposals aimed at ensuring the success of the European Green Deal.

Some Reactions to the New Policy Targets

Reacting on the new policy targets set by the EU Parliament, the European Community Shipowners’ Association (ECSA) called for mandates on fuel suppliers to bring sufficient quantities of renewable fuels to market and earmarking of revenues from the FuelEU Maritime scheme to help in bridging what is widely expected to be a sizeable price gap between fossil fuels and renewable fuels.

ECSA also noted the EU Parliament had taken "a more pragmatic approach" to mandating the use of onshore power by vessels by removing penalties against ships in ports where shore power infrastructure is not available for use.

While the ECSA wants more support for the maritime industry, NGO Transport & Environment (T&E) called for the EU to raise again the bar with a number of changes to the proposed legislative terms, including setting a required 6% sub-quota for e-fuels from 2030 and near-term incentives for first movers, wind and solar, and removal of a proposed exemption for companies with three vessels or less that make up 60% of shipping companies, according to T&E.

Stay Tuned with EXIMA
Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!


#EXIMA #EuropeanParliament #greener #maritimeshipping #targets #environmentallyfriendly #climate change

In their constant search for efficiency and reduction in ship handling times, ports around the world are increasing their reception and processing capacities by acquiring ever more efficient equipment. African ports are not to be outdone, as evidenced by the inauguration of the new facilities of the Autonomous Port of Abidjan.

The Port of Abidjan, hub of sub-regional maritime transport

Located in West Africa on the shores of the Gulf of Guinea, Côte d'Ivoire is the gateway to the landlocked countries of West Africa. In 2019, the port of Abidjan handled more than 25 million tons of goods. It also generates 76% of customs revenue in Côte d'Ivoire. The quality of the services provided to ships has enabled the port of Abidjan to be the first African port to be ISO 9001: 2015 certified. It is also ISO 14001: 2015 certified for its commitment to sustainable management of the environment. With its 140,000 m2 of warehouses and hangars, its 34 berths and its modern equipment, it is the largest port in West Africa and the 3rd largest port in Africa.

Increase the accommodation capacity for very large vessels

"Enable the port of Abidjan to accommodate the largest container ships in order to increase its container handling capacity", that is the objective which led the general management of the Port of Abidjan to launch in October 2015, the construction of a second container terminal (TC2) at the port of Abidjan. On November 02, 2022, Côte d'Ivoire Terminal, the company in charge of operating the new terminal, effectively started the activities of the said container terminal, with the reception of the CMA CGM ROSSINI vessel, with a length of 267 m, a width of 40 m, for a capacity of 5770 TEU Containers. The launch of the activities of the second terminal comes after the test stops successfully carried out in mid-October 2022.
Equipped with new ultra-modern equipment, the largest currently available in Africa and which meet environmental standards, the new facilities will thus make it possible to improve the productivity of the port of Abidjan, to increase delivery rates, to reduce delays processing of goods and contribute to further boosting trade in West Africa

Let EXIMA Help You

EXIMA’s ultimate goal is to provide our users with all the knowledge we have on international trade. For more trading information, make sure to check out our other articles here!


#EXIMA #largestport #Africa #containerterminal #upgrade #capacity #efficiency #cargoshipments

Unstable relations in an unstable regional order

The Middle East is a region where unstable relations and armed conflicts are experienced for long years. In 1948, David Ben-Gurion, the head of the Jewish Agency, declared the foundation of the Israel state on the Palestinian lands. Many Arabic countries and Turkiye rejected the decision of the United Nations supporting the foundation of the Israel state. From the foundation to today, the armed conflict between some Palestinian groups and Israel has continued while the political situation is developed in favor of the Israel state. Nowadays, there is still a chaotic political environment in the Middle East regarding Israel and its relations with other countries in the region.
The political support by the US gives essential advantage to Israel. In recent years, Arabic countries have started changing their political approach to Israel. Some Arabic countries including UAE, KSA, and Bahrain signed normalization agreements with Israel. Turkiye has been declaring its rejection of the existence of Israel while purchasing some national defense services and some agricultural inputs from Israel. However, Turkiye has started a new approach to Israel, and both countries have sent their consulates to each other in the last month. At the current time, it seems like a big normalization process is working in the Middle East, but no long-term stable peace is guaranteed in the region.

Normalization between Turkiye and Israel

Turkiye is among the countries rejecting the creation of the Israel state on the Palestinian lands while after a while a normalization process was working before the 2000s. Even further, strong trade relations were built between countries. The trade volume was higher than $1 billion in 2000 while it became almost $4 billion in 2011 and it is over $5 billion nowadays. Israel has assisted the Turkish army by providing some technical services for renovating warplanes for long years, and there are still some agreements on trade between countries and cooperation between armies. Subsequently, even though Turkiye has been criticizing Israel politically, there have mostly been normal economic relations. In some incidences like the Mavimarmara case, a ship carrying the Turkish flag tried to take some humanitarian aid to the Palestinians, and the Israeli army stopped it by killing some people on the ship, did not have a long-term negative impact on the relationship between countries.

Erdoğan, the Turkish president, seems to change his approach to Israel in the last two years. After Benjamin Netanyahu lost the elections in 2021, the Turkish management started building a new approach to Israel. This struggle is giving its fruits today, and both countries have decided to send their official representatives to each other. The trade volume for a quarter reached the top in the first quarter of 2022, and an annual trade volume of over $6 billion is expected this year.

What to expect in the following years

Although it is not possible to make perfect estimations for the future because of some political reasons with a long historical background, it is highly possible to expect a developing trade between Turkiye and Israel. Considering that Israel could manage to grow its national economy by 73% from 2010 to 2022 while the Turkish economy has been diminished by 7% at the same time, Turkiye needs external support, and Israel can be a potential candidate for this. In terms of economic development and technology, Israel is the leading country in the Middle East. Therefore, Turkiye needs to follow a leader for bettering. Ignoring ideological deficiencies is quite logical for developing countries including Turkiye to prepare a better future for new generations.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!


#EXIMA #diplomaticrelations #Israel #Turkey #israeli-turkishrelations #internationaltrade

Without a doubt, banks play a crucial role in society. Financing commercial endeavors have always been essential for fostering economic activity throughout history.

Today's global trade relies on banks for several things, including the ones listed below.

Trade Facilitation
This is especially important when the chosen payment method is a letter of credit (LC) since the issuing bank must decide whether or not payment should be made based only on the documentation provided.

Commercial Loans
The existence of cash reserves is necessary to assure the continued existence of most companies. These loans could be either short- or long-term (for example, used to purchase capital equipment) or purely for financial relief.

This article concentrates on the second issue, trade facilitation, especially concerning payment for international sales and purchases.

Foreign Exchange
These are products tailored to help traders mitigate foreign exchange risk.


Estimating Banking Risk
Country and bank risk are fundamentally intertwined when evaluating and managing bank risk. Hence, the stability of a country's economy is a significant factor in determining its vulnerability. Since banks show how a country's finances are doing, it's easy to see how these two things would naturally go together.

Thus, the risks we must consider while evaluating a foreign bank can be summed up as follows:

What is The Bank's Reputation?
You might make use of a variety of information sources, including the Country Risk Classification maintained by the OECD, the Doing Business section of the World Bank, the Corruption by Country Chart held by Transparency International (TI), investment services such as Moody's and Standard and Poor's, and other information that is readily accessible to the general public. This would give you a comprehensive understanding of a particular bank's risks.


Are You Familiar With Them?
The majority of the time, financial dealings on a global scale are completed through a network of correspondent banking relationships, and banks maintain a wide variety of connections in a variety of countries. If banks are skilled at nothing else, they are adept at risk management; this is their fundamental business. However, if a bank is brought up in negotiations, be careful if you need help finding good things said about it locally.


Do You Require Internal Risk Mitigation?
Even if a bank is good, the country it is based in might be different. This is another example of the connection between banking and national risk. Banks have to follow the laws and rules of their country. Since politicians are responsible for making rules and regulations, financial institutions are subject to political influences.

Conclusion
A company's routine analysis of pending and completed transactions should include an evaluation of the financial institution's stability and the associated risk. The dangers of doing business fluctuate due to the effects of the economy, natural calamities, and individual choices.

The lesson is straightforward yet often overlooked: do your homework and be prepared. There is no room for sentiment or complacency in matters of finance.

Stay Tuned with EXIMA
Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!


#EXIMA #internationaltraderisks # bankingrisks #internationaltraderiskmanagement #internationaltradefinance

Pakistan is still recovering from a series of devastating floods that occurred in August. The floods destroyed large swaths of the South-Asian nation and has contributed to food insecurity in the country. To alleviate the situation, Pakistan is looking to import more vegetables. This is hardly surprising, but what is a bit surprising is the source of those vegetables.

According to the now-former Finance Minister, Miftah Ismail, Pakistan is considering importing vegetables from India, its arch-rival. Food prices have risen significantly in the predominantly Muslim nation of over 240 million people. India and Pakistan have had a complex and often adversarial history since their partition and independence in 1947. Relations between the two have been particularly tense since the election of Narendra Modi, leader of the Hindu nationalist BJP, in 2014.

Pakistani floods

"We can consider importing vegetables from India," Ismail told local television in August, before adding that Turkey and Iran are also options. Unprecedented flash floods caused by historic monsoon rains caused widespread damage, affecting more than 33 million people. Monsoon rains and floods such as these are likely to increase in frequency, according to numerous climate change models.

That Pakistan is looking to India for help demonstrates just how bad the situation is. Millions of acres of farmland were flooded by weeks of continuous rain. This, plus global food insecurity caused by Russia’s invasion of Ukraine and drought in other parts of the world, caused the prices of basic goods to surge. Onions, tomatoes, and chickpeas in particular have seen sharp increases in price as the normally bountiful breadbasket provinces of Sindh and Punjab struggle to produce the crops they once did.

Potential for trade

While the floods have been a disaster, they could spark renewed interest in trade between the two highly populous South-Asian nations. Pakistan formally downgraded its trade relations with India in August 2019. Pakistan now places India on the same level as Israel, a country with which Pakistan has no trade ties at all.

The Pakistani government did this in response to India’s decision to revoke Article 370 of its constitution which granted occupied Kashmir special status. The Kashmiri region is the source of land disputes between India and Pakistan (and also China). Before partition, the region had a Muslim majority. Muslims in Kashmir, and across India, have been subjected to violence at disturbingly high levels in recent years.

Learn More with EXIMA

Found this article helpful? Then visit our Media Page for more!


#EXIMA #India #Pakistan #traderelationships #IndiaPakistantrade #tradeagreement #internationaltrade

Running a warehouse facility is a huge responsibility, especially if the facility is crucial to the supply chain and production of goods. Taking inventory is one of the most complex tasks when managing a warehouse, but things have come a long way since the days of using clipboards and a pen to take inventory.

Inventory visibility and control have gotten more traction with the fusion of technology in the inventory process, which has led to inventory automation. The use of barcodes and labels for inventory tracking has improved warehousing operations. But, radio frequency identification (RFID) has become one of the fastest-growing technologies for inventory control, a massive game-changer for warehouse operations.

RFID is a wireless technology that uses radio-frequency electromagnetic fields to transfer data. RFID uses tags and labels to scan and locate items remotely. These tags or labels are encoded with unique identifiers and are equipped with a tiny wireless radio transmitter that communicates to RFID readers. Whether the readers are handheld or fixed devices does not matter, it still sends signals to the tag or label from up to 30 feet away.

This new state-of-the-art technology is essential to warehouse operations and takes inventory automation to a new level for the following reasons.

Enhances Inventory Control

RFID readers and antennas can be placed in strategic locations inside a warehouse to automatically read RFID tags or labels as they pass the reader. This means RFID readers can scan an entire case or pallet of goods in a few seconds and also know their location within a few feet.

With the RFID readers, you know the products or materials in stock and how many you need to maintain and replenish in the warehouse.

Improves Inventory Accuracy

RFID reduces human error in tagging and cataloging. Each tag contains a unique ID that will be read and matched to a database with an automated process, so there would be no chance of a mismatch or a typical mistake.

Unlike barcode-based inventory, which relies heavily on workers never making mistakes, forgetting a scan or scanning the wrong barcode causes inaccuracies. An RFID reader raises inventory accuracy within a warehouse.

Reduces Labor Cost

Warehouses require a large staff to keep up with inventory, especially large warehouses. But, the RFID reader will help to reduce labor costs as it shrinks inventory cycle count times, improves receiving time for goods, and hastens the location of goods within the warehouse.

Automating the warehouse using RFID technology will reduce overall operating costs and improve service delivery within the supply chain.

More Data Management

An RFID tag can store more data and information than barcodes which you can use to potentially track items and gain more significant insights into each item without manual data entry. More information also has natural benefits for tracing products and keeping consumers and other supply chain partners informed about the warehouse's new product shipping and offerings.

Automation is good for efficiency, especially in warehouse operations, where managers need to be abreast of their current inventories faster and more accurately.

Let EXIMA Help You

EXIMA’s ultimate goal is to provide our users with all the knowledge we have on international trade. For more trading information, make sure to check out our other articles here!


#EXIMA #RFID #stockmanagement #warehouseRFID #inventorymanagement #logistics

A supply chain strategy is a procedure that manages the connection between a company and its suppliers. Usually, supply chain managers create this strategy to maximize value in all the production cycle stages. Planning the supply chain involves balancing efficiency, resilience, and adjustment with the overall business strategy. Companies leverage a supply chain strategy to ensure their products reach customers as seamlessly as possible. This strategy optimizes all phases of the supply chain, like material sourcing, manufacturing, logistics, and delivery. Factors that influence a company’s supply chain approach are:

• Internal decision-making procedures
• The industry
• Business objectives
• Company value proposition

With the global market becoming overly complex, developing s supply chain strategy for businesses in the manufacturing, construction, retail, distribution, and wholesale sectors is fast becoming critical. What can supply chain managers do to strengthen their supply chains? Here are four methods to consider. 

Position Buffers Across the Supply Chain

Positioning buffers strategically down the supply chain can help companies absorb the effect of unpredicted delays. Managers can deploy the following buffers across the supply chain.

Inventory: keep buffer or safety stock to prevent demand surges or delays. The demand surge buffer is the most common. It facilitates easy and real-time tracking and control of the inventory using inventory management software. 
Capacity buffer: utilize less used spaces like production and warehouse facilities.
Time buffer: ensure materials are available before a demand surge to prevent a downstream or upstream delivery point or process. 

Expand Your Sourcing Network and Manufacturing
Supply chains have experienced numerous disruptions in recent years. Due to this, procurement managers now realize the dangers of relying on one product source. Multi-sourcing begins with classifying partners depending on financial impact and current cost. Procurement managers should also form relationships with suppliers with capabilities in different locations. 

Leverage Demand Prediction
[url=https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwj_j6yXvs76AhV6Q_EDHQzOAQUQFnoECDEQAQ&url=https%3A%2F%2Fwww.thefulfillmentlab.com%2Fblog%2Fdemand-forecasting&usg=AOvVaw0eznG2wFlIzSqmbI2ALl-I]Demand prediction[/url] involves using data to determine product demand to prevent an under-supply when customers need the most goods. Accurate demand prediction reduces costs, boosts lead times, and enhances customer satisfaction. There are different ways of predicting demand, such as monitoring social media, surveying customers, seeking advice from consultants, or reviewing historical trends and data. 

Standardize Your Procedures
Maintaining consistent operations makes the supply chain dependable, especially for companies working with different manufacturers and suppliers around the globe. Different templates based on your processes facilitate a smooth production process and compliance with set regulations. For instance, companies in the automotive sector leverage common vehicle channels to coordinate their supply chain approach. 

Strengthening the supply chain is an investment. Predicting the next significant threat is not easy. This explains why supply chain experts are abandoning the traditional lean supply chain approach used for decades. Resilience is critical and can distinguish supply chains from emerging more robust than before or surviving challenges.


Let EXIMA Help You

EXIMA’s ultimate goal is to provide our users with all the knowledge we have on international trade. For more trading information, make sure to check out our other articles here!

#EXIMA #supplychainstrategy #smallbusiness #startup #manufacturingcompany

North America began a new age of integration on July 1, 2020, building on the North American Free Trade Agreement, which was updated to include deeper and broader integration that places people at its core.

Increased trade and investment are crucial to Mexico's economic growth, job creation, and reducing long-term regional and socioeconomic inequities; the new USMCA allows Mexico to do just that.

Why USMCA?

In 1994, the first version of the North American Free Trade Agreement (NAFTA) went into effect. Since then, the entire international economic scene has shifted, prompting some to argue that the original agreement's parameters are outdated and need revision.

The USMCA and NAFTA address imbalances in important industries between the three participant nations. Some of the most significant shifts affecting vital sectors right now include:

Automakers must ensure that 75% of their car parts come from one of the three countries.

• Increases in the enforcement of labor laws for Mexican workers.
• Increased American and Canadian dairy markets.
• Enhanced Regulations Regarding Intellectual Property


Impact of USMC on Mexico

The United States and Canada are Mexico's top two trading partners and third and fifth largest foreign investors, respectively. In 2021, Mexico was the United States' leading trading partner, while Canada ranked third. These figures show that our countries have established an integrated production platform across various industries, including agriculture, automotive, electronics, home appliances, medical technology, machinery, and equipment, among others, allowing the three to complement one another and guarantee food security in the region.

The new USMCA allows Mexico to further its productive integration in North America and to take advantage of the chances it presents to promote trade and investment, which are crucial for our economic growth, the creation of jobs, and—most importantly—for assisting us in lowering long-term regional and income inequalities.

The alliance between Mexico and the USMCA offers the perfect framework for fostering cooperation to meet present and future problems and guarantee that North America remains one of the world's most competitive and vibrant areas.

Conclusion

Mexico is committed to maintaining its collaboration with its North American partners in 2022 to construct a robust, resilient, and competitive region. This will ensure that the country provides its citizens with the prosperity they deserve.

Let EXIMA Help You

EXIMA’s ultimate goal is to provide our users with all the knowledge we have on international trade. For more trading information, make sure to check out our other articles here!


#EXIMA #tradeagreement #USMCA #borderadjustments #bilateraltradeagreements #NAFTA #Mexico

Discover five popular warehouse storage systems and learn how they work so you can decide on the best operational approach to your warehouse.

1. Block Stacking

Block stacking is probably the most rudimentary type of storage. It involves placing individual items or pallets on the floor and simply stacking them on top of one another. Warehouse staff typically organize inventory in lanes or blocks so that each item is easily accessible.

Block stacking is a simple and inexpensive form of storage; it doesn’t require any investment in racking and can be operated in any open warehouse floor space. However, there are a few drawbacks. It’s a very space intensive method and it can take a long time to retrieve items that are at the bottom of a pile. That’s why block stacking really only works with a LIFO—Last In, First Out—retrieval method.

2. Static Shelving

Static shelving is a storage mechanism designed to stay in one place. Static shelving works best with relatively lightweight inventory, meaning about a few hundred pounds per shelf. It’s a system that can work well for storing inventory that requires continuous replenishment.

Static shelving isn’t compatible with forklifts, so warehouses typically employ this system when handling inventory that they manually pick, place, and organize. Static shelving doesn’t work well for larger inventory.

3. Mobile Shelving

Mobile shelving is also a system for manually picked inventory, but it’s an entirely adjustable solution. The key difference between mobile and static shelving is that mobile shelving can hold more items in less space. In a mobile shelving system, warehouse teams mount shelves or cabinets on carriage and rail systems, eliminating fixed aisles.

This can increase productivity by increasing access to more inventory. This is especially true when space is tight. Mobile shelving designs often include manual-use or mechanized level tracks, and sometimes they even have locking systems to control access to inventory.

4. Pallet Racking

For large and busy warehouses, pallet racking systems can work great. Pallet racking systems are made out of wood, metal, or plastic and hold inventory in large boxes. Pallet racking is compatible with the use of forklifts and other automated mechanisms for larger boxes. There are several ways to implement a pallet racking system. Each warehouse can choose the system that works best for them based on weight limits, flexibility, and infrastructure.

5. Multi-Tier Racking

Multi-tier racking is a great option for warehouses that deal with large stocks of items that have small unit sizes. This system utilizes vertical space more efficiently than other approaches. Moreover, many multi-tier racking options are flexible, so you can add or remove tiers depending on your needs.

Multi-tier racking works best with manually picked, relatively lightweight items. If you’re going to employ this warehouse storage system, it’s probably best to organize each tier strategically and to pack items as densely as you can. However, it’s also crucial to be mindful of weight limits and ceiling-to-rack height compliance guidelines.

Let EXIMA Help You

EXIMA’s ultimate goal is to provide our users with all the knowledge we have on international trade. For more trading information, make sure to check out our other articles here!


#EXIMA #warehousestorage #storagesystems #inventory #bulk

A new trade finance survey has found that HBSC is the world's best bank for international trade. The bank was recognized across all industry segments, including manufacturing, construction, resources, logistics, and transport.

Continue reading to learn more.

About The Award

The greatest bank in the world for trade financing has just been given the first-ever Euromoney Award. It may be said that this recognition has never been more crucial than when it was introduced. Following two years of COVID-19 and the current war in Europe, corporate supply chains are severely disrupted. As clients worldwide face significant issues, there has never been a greater need for solutions. The first victor in this category from Euromoney is a bank practically synonymous with worldwide excellence in trade finance. None other than HSBC.

The key to this success is HSBC's ability to create an integrated trade finance offer for its clients across all asset classes and geographies. The bank has built up an unmatched network of global correspondent relationships over many years. There are now 2,500 correspondent banks around the world connected to HSBC Trade Finance via SWIFT (Society for Worldwide Interbank Financial Telecommunication).

The UK-headquartered bank already runs the world's most extensive import/export financing program, HSBC Trade Finance (HTF), which had $83bn of transactions across its global network last year. In addition, the company offers a wide array of other services through its balance sheet, including factoring, letters of credit, guarantees, insurance, and financing facilities.

About HSBC Holdings PLC

The bank has been working on trade finance projects since its inception in 1865 as Hongkong and Shanghai Banking Corporation – but only recently have they begun to be recognized as one of the industry leaders in this area. The culmination of this work came last month with the announcement that HSBC had been named Euromoney's Best Bank For International Trade 2019 at Euromoney's annual awards ceremony held in London on June 11.

The parent organization of the HSBC Group, HSBC Holdings plc, has its main office in London. From offices in 64 nations and territories throughout our six geographical regions—Asia, Europe, North America, the Middle East, Latin America, and North Africa—HSBC services clients globally. One of the world's largest financial and banking organizations, HSBC has holdings of US$2,958 billion as of December 31, 2021.

Conclusion

In short, for its outstanding performance in various categories of international trade, HBSC was named the Best Bank for International Trade in 2017. This is a reason to celebrate, and no doubt recognition like this motivates HBSC to continue excelling at providing excellent services to its customers.

Learn More with EXIMA
Are you interested in learning more about the trade industry? Check out other articles on our Media Page today and avoid common mistakes traders tend to make!

#EXIMA #international trade #globaltradebank #internationaltransactions #internationalmoneytransfers #globalpaymentgateway #bestbank

A new state in international relations

The Russian invasion of Ukraine has started a new era in international relations. The Northern European countries including Finland and Sweden preferred staying out of the NATO defense cooperation against the Soviet Union, and then Russia after the collapse of the Union. The last president of the Soviet Union, Mikhail Gorbachev passed away in the last month, spent an effort to end the cold war between NATO and Russia, and he could manage it somehow. However, there has always been anger growing against him in Russia and blaming him to cause the collapse of the Soviet Union. After 30 years, this anger against the idea of ending the cold war has been transformed into a political power led by Vladimir Putin. Putin, claiming that NATO is threatening Russia by including Ukraine as a new NATO member, decided to invade the country. Consequently, the cold has resurrected nowadays. The Russian army has bombed almost all the Ukrainian cities, and a few hundred Ukrainians are losing their lives every day. The cold war resurrected is quite scary for the Western countries, and they have started assessing this new state of war in the world. Russia has already started implementing cold war policies including stopping sending natural gas to the EU countries.

A new era in the global economy

Putin is quite serious about continuing the cold war. If Russia can resist international pressure on the country, this situation will evaluate into a [url=https://www.eeas.europa.eu/eeas/russia%E2%80%99s-invasion-ukraine-puts-global-economy-risk_en]new era[/url] in the global economy excluding Russia. That would cause a large loss for humanity because Russia and the states moving together with Russia including many Turkish republics, Belarus, and some other countries are natural-resources rich countries. At the same time, Russia and its supporters produce most of the grains produced in the world. The resurrected cold war means the loss of many opportunities for all of us. In another word, the increasing world population will have a relatively larger hunger risk and many other economic risks. The loss in international trade will be larger, and many businesses will be lost. The resurrected cold war means a large loss in global production capacity.

Turkiye: A potential winner or a potential loser in the new era of the global economy

Turkiye is located politically just between NATO and Russia. Turkiye is a NATO member while having strong relations with Russia and the Turkish republics supporting Russia. For instance, Erdogan attended the Shanghai Cooperation Organization, known as Shanghai five meetings held in Samarkand, Uzbekistan, and Erdogan seemed quite happy there having a conversation with Putin and other political leaders. On the other side, Turkiye has been selling the Bayraktar drones to Ukraine, even donating one for free. Before the NATO meetings held in Madrid, Turkiye declared that Sweden and Finland are protecting the criminals who were involved in terrorist activities in Turkiye while the bargaining between the parties ended up with an agreement. Turkiye lifted the veto decision on Finnish and Swedish NATO membership in return for certain terror and security guarantees. Turkiye purchased S400 air defense systems from Russia a few years ago, and Russia declared that Turkiye is to buy more S400 missiles which will not be appreciated by the NATO members and the US. Finally, Turkiye has been receiving a large number of financial resources hidden, and it is claimed that they are the wealth of the Russian rich. The political position of Turkiye between NATO and Russia is quite confusing. Even on the same day, it is possible to see a change in the political behavior of Turkiye regarding NATO and Russia.

This situation creates a high level of uncertainty for businesses in Turkey. Turkey needs to create a balance between NATO and Russia. Otherwise, this confusing uncertainty might create a large political loss in international relations for Turkiye which might be reflected in the Turkish economy. In 2023, Turkiye will have the general elections and the presidential election. The results of these elections seem to be one of the main determinants of the political position of Turkiye. The Western countries, instead of moving fast and placing sanctuary on Turkiye, are waiting for the results of the elections in the country, hoping that Turkiye will be back to the previous international policies and be a reliable member of NATO.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #Russia #Finland #Turkiye #NATO #internationalrelations #coldwar #internationaltrade

In February 2022, political tensions between Russia and Ukraine came to a head with Russia's attempted annexation of Ukraine. This situation has sparked outrage in several countries around the world and led to sanctions against Russia, with the aim of isolating Russia. But is such a strategy viable?

Importance of Russia in global economy

With a GDP of $1,479 billion in 2020, Russia is the 11th largest economy in the world. The Russian Federal Customs Service (FCS) has released data that shows for the first ten months of 2021, Russia's total exports (goods and services) reached $395 billion, an increase of 42.8% over 2020. But this dramatic increase is largely due to the post-pandemic economic recovery, as in several regions of the world. Russia‘s Top Five Trading Partners were responsible for 86.9% of all trade between January-October last year and were as follows; China (US$112.4 billion), Germany (US$46.1 billion), Netherlands (US$37 billion), US (US$28.8 billion), Turkey (US$25.7 billion). Russia mainly supplies these countries with fuel and energy, metals, and chemical products. About 13% of exports go to CIS countries, predominantly Belarus and Kazakhstan (trade turnover of $13.4 billion and $11.4 billion, respectively). The main supplies to the CIS are raw materials, fuel, and foodstuffs.

An economic and financial interdependence which makes it difficult to take, any desire for exclusion

One of the things that makes any attempt to isolate Russia from international trade difficult is the difficulty for the countries of the world to speak with one voice. While a country like France can rely on its nuclear power plants to produce energy at a lower cost, countries like Germany and Italy remain heavily dependent on Russian gas. Germany is even forced to return to coal to compensate for gas supply interruptions. In such a context, European solidarity obliges the EU to act with caution in its sanctions. Moreover, countries such as China, Turkey and India, historical allies of Russia, are [url=https://nationalinterest.org/feature/why-india-and-china-won%E2%80%99t-sanction-russia-202352]hostile to the sanctions[/url] that the EU could take. Finally, even beyond European energy dependence, other parts of the world could be affected if Russia is isolated. This is the case of African countries whose grain and wheat supply largely depends on Russia.

In conclusion, any attempt to completely exclude Russia from world trade would result in shortages for which no country is currently prepared. However, this is an eventuality that could occur in a few years, thanks to the REPowerEU plan, a plan to reduce the EU's dependence on Russian gas by two thirds before the end of 2022, and by 100% from of 2027.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #Internationaltrade #tradefinance #Africanbanks #MNCsfinance

The financing of exporting companies, in particular SMEs which do not have a lot of financial resources, is at the heart of the concerns in most countries of the world. But obtaining this funding is a real obstacle course

A real need for funding

An SME applying for an international call for tenders or receiving a large order from abroad very often needs funds to be able to produce the order or acquire the equipment necessary to fulfill the order. These important funds, the company cannot always obtain them through its own resources. It must have recourse to financial institutions. But obtaining credit for an export activity when you are an SME can be complicated because financial institutions are sometimes reluctant to support exporting companies. But why?

A lack of experience which increases the risk

Some SMEs embark on the international adventure for the first time without much experience. They are a bit like a young driver who has just passed his driving license and wants to take out insurance. Lack of experience makes banks consider the investment risk too high. To remedy this, SMEs must sacrifice themselves to carry out a few transactions on their own funds or demonstrate in their financing application file that they are in control of their project and that they are prepared for all eventualities.

A wrong risk approach by SMEs

If banks sometimes find it difficult to support exporting SMEs in their development projects, it is because many of these companies do not demonstrate enough that they have completely assessed the risks to which they are exposed or that they have thought of ways to reduce these risks. For example, an SME that requests a 2 million euros funding to modernize its production tool in order to manufacture products that meet the standards of an international market will be more likely to highlight the potential return on investment that it expects but will not present an alternative plan to make this investment profitable in case the international adventure does not go as planned.

A risky environment

When the country risk is too high, when for example a company decides to do business in a country where war and political risk raise a certain number of economic uncertainties in terms of the security of transactions, banks think about it twice because they fear that in the event of a problem, the SME will go bankrupt and be unable to repay the loan.

It is true that some of the reasons mentioned above do not depend on the companies and that companies cannot change it much. However, most of the elements mentioned are within the reach of SMEs and they have the means to correct them in order to better structure their requests for funding and expand their activity.

Learn More with EXIMA

Found this article informative? Check out our Media Page today!

#EXIMA #Banks #support #exporters #exportcreditbureau #exportcompanies

Trade finance entails facilitating international trade flows using financial instruments and products, such as bank guarantees and letters of credit from banks and other financial institutions. Trade finance makes it easier for importers and exporters to transact business.

International trade finance exists to mitigate or reduce the risks associated with international trade transactions. This is achieved by reconciling the divergent needs of an exporter and an importer by introducing a third party that eliminates payment risk for exporters and supply risk for importers.

According to the World Trade Organization, about 80 to 90 percent of world trade relies on trade finance. This article looks at how this works and the different types of global trade finance.

Risk Management and Payment in International Trade

There are inherent risks when a trade occurs between foreign companies in different countries. The exporter is concerned about receiving their payment on time, while the importer is concerned with receiving their product in the correct quantity and quality. Also, importers often place new orders for high-value bulk shipments that require substantial upfront costs to manufacture and supply, which come with significant risks.

The role of third-party trade financing is to pay the exporter in accordance with the trade agreement, while giving the importer credit to fulfill the trade order. This enables exporters to obtain quick access to financing in order to manufacture and ship products. This also allows exporters and importers to keep their working capital positive and concentrate on optimizing their operations for growth. At the same time, shipments are transported and paid for within a reasonable period. Receiving finance upfront generally helps to reduce the risk of defaults.

Exporters may never know whether or not an importer will pay them for goods shipped if trade financing is not available. At the same time, importers are hesitant to purchase a product because there is no guarantee that the seller will ship the goods to them.

Types of International Trade Finance

Trade finance can be provided by traditional banks and other financial institutions. Multiple parties are usually involved, including importers/exporters, trade finance companies, banks, export credit agencies, and insurers. The following are some of the primary services offered by trade finance companies:

- Letter of Credit

This is a promise made by the importer’s financial institution to the exporter that once the exporter shows all documents to confirm shipment, as stated in their sales contract, the financial institution will pay the exporter.

- Factoring

This is when an exporter sells a discounted invoice to a trade financier. Exporters use this to accelerate their cash flow. In this case, the trade financier, or factor, gives the exporter cash up front and collects payment from the importer at invoice maturity. This assists the exporter in reducing the risk of potential bad debts.

- Bank Guarantee

A bank acts as a guarantor for an exporter or importer in this case. With a condition, the bank guarantees a sum of money to the beneficiary. Suppose the exporter or importer is unable to meet the terms of their agreement. This provides comfort to both the buyer and the seller.

- Insurance

When shipping goods, insurance can be used to protect the exporter from nonpayment by the buyer. Loans, forfeiture, overdraft facilities, and export invoice financing are among the other services available.

Learn More with EXIMA

Found this article helpful? Then visit our Media Page for more!

#EXIMA #internationaltrade #finance #financialinstruments #businesstransactions #importers #exporters

A customs-bonded warehouse may sound like an unnecessary expense. However, it has several advantages over a non-bonded warehouse that makes it worth considering. So, if you work in international trade, you must be aware of the following advantages:

1. Deferred Duties

The great part of customs-bonded storage is that it is cost-effective. When imported products are held in a customs-bonded warehouse, tariffs are delayed until the commodities depart the warehouse. This permits the importer to save money on the storage of their goods regardless of their intended use. This also provides the importer additional time to fulfill the necessary legal paperwork for importing products into the country. Some importers report deferred tax savings of 25 to 30 percent when compared to non-bonded facilities.

2. Long-Term Storage

Customs-bonded storage facilities are excellent for long-term storage. In the US, you can hold goods in a bonded warehouse for up to five years without paying customs duties; in some nations, the storage duration is limitless. Long-term storage eliminates unnecessary travel and enables importers to establish relationships with dependable, trustworthy suppliers.

3. No-Stress Relationship

Keeping products in a customs-bonded warehouse relieves merchants of stress, and finding a certified warehouse will ease the storage and shipment of international commodities. There is no rush with documentation, payment, or inspection; if demand is low, products can be stored for years. On the other hand, non-bonded warehouses will destroy stored items due to late payments and improper documentation.

4. Ideal for Storing Restricted Items

Customs-bonded storage facilities are ideal for keeping banned items. Importing restricted items requires more documentation and legal procedures than importing common goods. Regrettably, for importers, there is a limited amount of time during which restricted items can be held in a warehouse prior to the approval of the necessary documents. Customs-bonded warehouses are excluded from this probation term. As a result, importers can keep restricted products for up to five years while filing the necessary paperwork, which is similar to duty deferral.

5. Perfect for Worldwide Shipping

Foreign shippers can also benefit greatly from the convenience of a customs-bonded warehouse. A business can import goods to a customs-bonded warehouse anywhere in the world and keep them duty-free until further notice.

At the end of the day, there are numerous reasons why a company would prefer a bonded warehouse over any other option. Of course, your decision will be unique to you and your company, but hopefully this list will help you understand the value of having a customs warehouse.

Stay Connected with EXIMA

EXIMA is committed to making international trade easy and making sure our users have all the necessary information they may need to trade confidently. Take a look at our Media Page to learn more about current events today!

#EXIMA #warehouse #customswarehouse #costsavings #longtermstorage

Blockchain is changing the way information is stored while also radically altering access to information for everyone. The advancements in blockchain technologies indicate that accessing information will become much easier for anyone with internet access. This technology appears to be a step further in the democratization of data access than the internet. Millions of computers owned by people all over the world will be able to access millions of smart contracts, including trade agreements, articles, art pieces, and a variety of other information and documents.

One of the most fundamental assumptions of the perfect competition market theory is equal access to information. Economists argue that perfect competition is only a model for measuring competition and cannot be observed in real life. Blockchain could cause a dramatic shift in competition by making it easier for everyone to access complete information. This situation is expected to drastically alter international trade and trading transactions. Access to information for everyone can help people improve their income and living standards through trade. It also has the potential to reduce trade transaction costs because storing information using blockchain technology may result in new trading tools that can replace traditional trade transactions that require lengthy legal processes.

What More Democratic Trade Means

Being able to access information means being more competitive in the marketplace. Nowadays, SMEs face a lack of sufficient information to enter a new market or gain access to a market in another country. Most SMEs lack the capacity to export their products to another country, owing to a lack of knowledge of the cost structures and important facts influencing market mechanisms in these markets. They can hire consulting firms to help them enter these markets, but information in international trade can be highly expensive.

Finally, international trade necessitates the development of trust between trading parties as well as the fulfillment of numerous financial and bureaucratic requirements. These conditions can result in extremely high transaction costs, which many SMEs cannot afford. However, using smart contracts in international trade and storing trade data on blockchain networks may reduce the cost of SMEs participating in international trade.

Equal Opportunity in International and Economic Development

When SMEs begin to benefit from blockchain in international trade and are able to reach markets they could not previously reach, they will have a faster growth opportunity. Because SMEs are important parts of their communities, when they make more money, they can provide better and more job opportunities in their area. Similarly, developing SMEs means developing regions because production factors and resources can be used more efficiently and people can earn more money. As a result, improving SMEs by giving them access to new markets and making them more competitive can be a driving force in regional economic development. Finally, blockchain technologies appear to have the potential to usher in a new era of trade and economic development.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #internationaltrade #trading #blockchain #internet #dataaccess

Banking is the thread that connects international trade. To accomplish this, banks provide a variety of services to importers and exporters that ensure transactions are completed and goods are delivered with minimal risk. Here are some of the ways they assist businesses:

Build Trust and Minimize Risk

When it comes to international trade, both exporters and importers have the same worry. Buyers want paid-for goods to arrive on time, while sellers want payment for shipped goods. Banks reassure both parties by either holding the money until proof of shipment is provided or informing the seller that their money has been paid. This is accomplished through import or export letters of credit, which serve as proof of shipment and payment guarantee, respectively. Banks also use import and export collections to ensure shipment and payment.

Loans and Trade Financing

Exporters and importers sometimes need liquidity to finance the costs associated with trade and shipping. Banks facilitate this by providing loans to help them stay in business and not miss out on opportunities, especially when they get large orders or need short-term export or import solutions. Banks guarantee payment for about a fifth of international trade.

Currency Volatility and Forecasting

Currency fluctuations can create uncertainty in the price valuation of exports and imports, which can be costly for buyers and sellers prior to a hike or drop. To address this, banks can offer them the option of paying for future purchases at a fixed price that will not change if currency markets fluctuate. This makes it easier to forecast the future and budget for other expenses with some certainty.

Networks and Knowledge

Today’s banks are a global network of professionals with vast experience in international trade. It’s a pool of knowledge that will benefit exporters and importers and create new opportunities. Some banks curate and make this knowledge and contacts available through online portals and in person. The insights these experts provide can help traders understand and minimize risk.

Tax, Paperwork, Licenses, and Tariffs

There are legal procedures, licenses, tariffs, logistics, and maybe even trade sanctions that you might not be familiar with. As a small business, it’s expensive and time-consuming to keep tabs on all of these requirements. Expert lawyers and up-to-date information are available at trade banks with the click of a button. They can provide you with advice and quickly draft simple contracts. This is important for when trade relationships change. Brexit is a great example of rules changing before, during, and after changes take effect.

Overall, importers and exporters should consider banks not only as money handlers but as valuable partners whose infrastructure, knowledge, and contacts bring value to international trade. This will continue to grow along with the expansion of the global economy into new markets.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #bankingservices #importers #exporters #banks #banktransactions #goodsdelivery

Technology has had an impact on every industry, including warehouses. The rise of automated warehouse systems in recent years has increased efficiency and productivity. The use of robotics is one of the most recent trends in warehouse automation since they provide a lot of flexibility because you can program them to do specific tasks. This means you can quickly adapt them to changing warehouse needs. Here’s how robotic automation is currently affecting warehouse management:

Improved Warehouse Productivity

In 2021, a survey revealed that 20% of organizations were considering robotics for their warehouse operations to boost warehouse productivity. There are many benefits of deploying autonomous mobile robots (AMRs) such as increased accuracy and efficiency in product picking, packing, and shipping.

So, how does this work? Well, AMRs can move around warehouse floors with no human intervention. This means that they can pick up and transport items quickly and efficiently. This improved efficiency results in faster order fulfillment and fewer errors. AMRs can also automate other warehouse tasks such as inventory management and shelf restocking. This will allow employees to concentrate on tasks that add value to the company, such as customer service.

Intelligent Decision-Making

Decision-making is vital to the success of any business, but it is especially important in the fast-paced world of warehouse management. This is where adaptive robotic automation comes in. Adaptive robotic automation is a type of technology that makes data-driven decisions in real-time using artificial intelligence (AI) and machine learning (ML). This can assist warehouse managers in optimizing their operations using facts and figures rather than gut instinct.

However, despite these potential benefits, there are some drawbacks as well. For example, implementing the technology can be costly and may necessitate significant changes to the warehouse infrastructure. Because adaptive robotic automation is still in its early stages of development, it is unclear how it will fare in the long run.

Speed up Order Fulfillment

By automating tasks like picking, packing, and shipping, robotic automation can help speed up order fulfillment. This can help improve warehouse efficiency and accuracy while also freeing up time for employees to focus on other tasks. This can result in both cost savings and increased productivity. Robotic automation can help to improve workplace safety by removing the need for employees to handle hazardous or heavy materials as well.

Learn More with EXIMA

EXIMA provides our users with access to everything they need to know about international trade, straight from the experts themselves. To get more helpful information like this, join our association today!

#EXIMA #roboticautomation #warehousing #warehousemanagement #roboticsbenefits

International trade has evolved in the past few decades to hit more than $19 billion in 2018. As a result, entrepreneurs interested in a career in finance and international trade should understand the various types of global trade. As shown below, there are three major types of trade:

Import Trade

Import trade is the idea of buying services and goods from an overseas country because they are unavailable at competitive prices or in adequate quantities in your country. For instance, 82% of India's crude oil comes from other countries like Venezuela and the UAE. Those countries own substantial oil fields and are highly capable of exploring, refining, and transporting oil at cost-friendly rates. Again, UAE imports clothing and agricultural products from India because doing so is cheaper and easier than producing them in their country. 

Export Trade 

Meanwhile, export trade is an international trade approach specializing in selling locally produced services and goods to overseas countries. It's defined as the opposite of import trade. For instance, India exports dairy products, plastics, steel and iron, inorganic chemicals, raw ores, and oilseeds to countries such as China.

On the other hand, China exports organic chemicals, electrical equipment, mineral fuels, silk, and fertilizers to India. The goods are traded between the two countries, enabling them to maximize their production capacities. 

Entrepot Trade 

Entrepot trade is a particular international trade approach that comprises export and import trade. Here, services and goods are imported from one country to facilitate export to a different country. As a result, the importing country does not use the goods for sale or consumption. Instead, it adds value to the goods before exporting them. For instance, suppose India brings in rubber from Thailand, refines it, and exports it to Japan; that process would be known as entrepot trade. Many countries prefer entrepot trade due to:

- Poor direct connection or access between countries
- Lack of trade contracts between countries
- Improved logistical facilities or processing in a third country
- Inadequate trade finance in the importing country's banking facilities

Transformations in the Finance and Trade Industries

As times change, the finance and international trade world is set to undergo a crucial transformation. Many countries will be seeking a portion of the highly profitable foreign trade sector.

International trade is a global product that is expected to experience massive growth. As a result, both individuals and organizations will need to acquire a comprehensive understanding of finance and international trade complexities. This knowledge will come in handy to help them gain a competitive edge.

Learn More with EXIMA

In the world of trade, it is important to stay updated on all current events. That is why EXIMA is here to provide you with all relevant information. Come take a look at our Media Page and stay in the loop!

#EXIMA #internationaltrade #internationaltradetypes #marketexpansion

There are hundreds of variables at work in the world of supply chain management. These variables work together to ensure that your company's supply chain is flawless. Warehousing is one variable that, depending on how you handle it, can help or hurt your supply chain.

Here are some of the key roles warehousing plays in supply chain management:

1. Strategic Positioning

The location of a warehouse can make or break a supply chain. You could select a warehouse along your supply route or near the port where you will deliver or receive your goods. You should choose a location that allows you to move your belongings quickly. The location of your warehouse can help you grow your business by attracting new clients and investors. By streamlining the supply chain to match market demand, a strategic location helps increase inventory turnover.

2. Inventory Accountability

The warehouse offers effective inventory management as well as strict accountability. Inventory management also allows for real-time data access, allowing the supply chain to run smoothly. Inventory management is a component of supply chain management. It contributes to ensuring that supply meets demand. It also improves the client experience because everything in the warehouse is in good working order. Warehouses organize your inventory and provide precise information on when to replenish supplies. If an item is temporarily out of stock, you can offer your customers an alternative.

3. Efficient Storage

Another reason why warehouses are an important part of supply chain management is because they store materials in the best way possible. Properly stored resources can be delivered to clients much more quickly and efficiently. Materials are stored in a warehouse in such a way that they remain in good condition. There are several factors to consider when looking for a storage facility, such as FDA regulations, to maximize the storage approach. Most importantly, you must ensure that the warehouse you have chosen is appropriate for your products. For example, if you sell perishable food, you may need to find temperature-controlled warehouses.

4. Security

A well-managed warehouse can improve the efficiency of your supply chain by lowering the risk of material spoilage and delays. A warehouse ensures the security and optimal condition of your products, thereby improving your supply chain. If your inventory is of high quality and readily available, suppliers may rely on your warehouses. Warehouse safety is also critical, as it prevents things from being broken or stolen.

5. Economic Advantage

A warehouse streamlines the supply chain, generating numerous financial gains for the business. Warehouses store your goods for later use during periods of intense demand, guaranteeing price stability and preventing income losses.

Warehouses are a critical part of how nearly any business gets its goods from the manufacturer to the customer. As an integral part of the supply chain, warehouses provide stability and increased organization for the rest of the process.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #warehousing #supplychain #supplychainmanagement

Türkiye and Israel have had a long relationship dating back to WWII. The Jewish people were looking for a new home, and the Ottoman Empire assisted them in establishing themselves in the Middle East. Furthermore, the first universities of the young Turkish Republic were founded by Jewish professors who had been forced to flee Germany at the time. Türkiye has hosted Israel in the Middle East for many years, despite ongoing political tensions between the two.

On the other hand, Türkiye imports from Israel some vital national defense services and technological products. Although the two countries have a strong relationship, it has never been perfect due to political issues arising from the conflict between Palestine and Israel. Also, the Islamist groups in Türkiye causes a large influence on Turkish politics against Israel. It is possible to argue that some religious Israelis have a similar impact on Israeli politics. However, the two countries have many issues that require their cooperation.

Trade between Türkiye and Israel

The current trade volume between Türkiye and Israel is around $7 billion. Given that diplomatic relations between the countries were severed following the attack on the Mavi Marmara ship by the Israeli army while attempting to transport food and other humanitarian aid to Palestinians in 2010, the potential trade volume between the two countries has yet to be realized. Israel supplies Türkiye with refined petroleum, sharp iron, chemicals, and some agricultural inputs. Furthermore, Israeli companies have long served the Turkish people by renewing technologies used in the national defense system. Türkiye exports automobiles as well as some critical inputs for Israel's iron industry.

Bilateral Free Trade Agreements between Countries

The first free trade bilateral agreement between Türkiye and Israel was signed in 1997. This agreement exempts trading goods from taxation and other restrictions that countries impose on their exports and imports; in 2006 and 2007, some changes were made to the agreement text. Because of political reasons, developing trade relationships between countries took a long time. In the 1990s, the countries realized they needed each other, and the agreement came to fruition. Israel is surrounded by Arab countries, many of which are religious. Naturally, they regard Israel as an enemy state for religious reasons.

Türkiye is a secular country willing to join the Western world, and Israel has not been evaluated religiously despite some changes in the last twenty years. In the last two decades, Erdogan's administration has fostered hostile diplomacy toward Israel. However, the Turkish Republic's diplomacy tradition does not accept this approach, and regular and friendly relations between the two countries are expected to resume soon. The Turkish public does not accept any religious basis for developing international relations, and being a part of the developed Western world remains a high priority for the majority of Turks.

Opportunities by Investing in the Relationship between Türkiye and Israel

Israel has a highly talented labor force in technology and businesses producing high technology products in the fields from agricultural production to defense industries. Türkiye has well-talented engineers, large lands for doing agricultural businesses, and water required for many different production activities. Developing collaboration between the countries could give fruitful results in many fields.

Learn More with EXIMA

Found this article helpful? Then visit our Media Page for more!

#EXIMA #bilateraltrade #Turkiye #Israel #internationaltrade

The year 2021 was a record year for IPOs. Never in history have more companies been listed on a stock exchange. And never before has the volume of these listings been higher.

2022, however, will be very different. According to Renaissance Capital, only 34 IPOs took place in the first five months of 2021. That's 70 percent less than in the first five months of the past year. Also, 59 percent of new listings were special purpose acquisition vehicles (SPACs) last year. This year, that number has decreased significantly.

Although the financing environment has worsened, Bitcoin miner PrimeBlock has announced going public via a $1.25 billion SPAC deal. The merger is expected to close by the second half of this year.

What Are SPACs?

The idea of SPACs is to facilitate capital raising by making it easier for firms to go public. SPACs are also known as "blank check companies." Those companies go public without any operations and often without a specific acquisition target. The goal for these companies is to acquire an existing company – usually a private company – after their IPO, transforming it into a public company. SPAC investors typically do not know which company they will ultimately invest in at the time of the IPO.

SPACs are usually underwritten by institutional investors before offering shares to the public. They have two years to complete an acquisition, or they must return funds to the investors.

The advantage of those vehicles is that they create an opportunity for companies to go public without going through the cumbersome conventional IPO process. For investors, SPACs come with the risk that the SPAC promoters might not successfully acquire or merge with a target company.

A Difficult Financing Environment

PrimeBlock is a Bitcoin mining and infrastructure startup that operates data centers and crypto mining operations across North America. The company announced in April to merge with a SPAC to go public. The deal will value the company at $1.25 billion, including debt.

The company has secured $300 million in equity financing for the deal. It will merge with 10X Capital Venture Acquisition Corp II. After the deal, the combined company will get listed on the NASDAQ Stock Exchange.

The announcement came at a time when the IPO market had slowed significantly and crypto markets had lost half of their market capitalization. Crypto markets have crashed since the announcement in April. Bitcoin is now trading more than 60% below its all-time high last November.

Bitcoin losing that much in value is a serious problem for Bitcoin mining companies. They must now sell their Bitcoin at a lower price, or they might eventually have to shut down their mining operations. On top of that, rising energy prices further compress margins because Bitcoin mining is heavily energy-intensive.

Considering that PrimeBlock's announcement was before the recent Bitcoin crash, it might not be entirely clear what the future of the company’s IPO plans will look like.

Learn More with EXIMA

Found this article informative? Check out our Media Page today!

#EXIMA #Bitcoin #BitcoinMinerPrimeBlock #SPACdeal #publicbitcoin

With the advent of e-commerce in recent years, an increasing number of companies have been formed with a business model based on e-commerce principles, with the goal of bringing the product closer to its consumers. Drop shipping is one of these new forms of commerce that is both effective and controversial.

A Small Investment for a Big Profit

Drop shipping or "direct delivery" is an online sale in which the seller is only responsible for the marketing and sale of the product. It is the seller's supplier who ships the goods to the end consumer. The end consumer is generally not aware of the existence of the suppliers or their role. Drop shipping therefore makes it possible to embark on e-commerce with a low initial investment, since the seller does not manage the stock or the logistics. Its only expenses are related to the creation of the online store and the promotion of its products on the web. It provides a very interesting opportunity for self-employed entrepreneurs with limited financial resources who cannot invest in stockpiling, renting storage warehouses, or even managing large logistics operations.

Misleading Information and Involuntary Complicity of Social Networks

Even if the seller is not responsible for delivery, he or she is fully responsible for the proper execution of the end customers' orders. As a result, the seller must ensure that they are working with a reliable supplier who can ensure the delivery times stated, the management of returns, and the availability of the products in relation to their description on the website. Regrettably, this verification is not always carried out. Some sellers simply copy and paste information from the manufacturer without checking its accuracy.

Profit drives sellers to ignore standard checks and, in some cases, to use misleading information to sell their products because even if the seller is not responsible for the logistics part of the transaction, he or she still has to attract customers to the online store, which is difficult in an extremely competitive environment.

Social networks are unwittingly complicit in these fraudulent practices because it is through this channel that sellers reach their targets. With a simple sponsorship, sellers can reach thousands of potential customers who will visit their online store. How many times when opening Facebook, Instagram, or Snapchat do we come across advertisements for products that are clearly imitations or even counterfeits of well-known products but with a solid argumentation that aims to reassure the customer? This kind of practice should be banned, but social networks can't do much about it. Fortunately, there are a few ways to identify drop shipping scams.

However, we should not put all e-merchants in the same basket. The vast majority of them strive to do their job with ethics and respect for the consumer.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #dropshipping #onlinescams #retailbusiness #customerorders #inventory

If the world economy is going to continue to grow, it must learn to do so in an environmental way. As a global civilization, the crops we grow, the products we manufacture, and the way we transport them all create a sizable ecological footprint. If we want to avoid the worst possible outcomes of climate change, all of this will have to change. An environmental goods agreement is one way we can create a more sustainable world.

The Benefits of an EGA

On the 8th of July, 2014, a group of World Trade Organization (WTO) members launched multilateral negotiations for the establishment of the Environmental Goods Agreement (EGA). Such an agreement would encourage the trade of a number of key environmental products. For example, the agreement will strongly promote trading wind turbines and solar panels. Since then, the number of interested participants has expanded considerably, and the current total is 46 WTO members.

Of these 46 members, 18 participants are currently negotiating the elimination of tariffs on a variety of critical environment-related products. These are products that can help achieve environmental and climate protection goals. These products are key in generating clean and renewable energy, limiting air pollution, improving energy and resource efficiency, managing waste, treating wastewater, limiting noise pollution, and generally monitoring the quality of the environment.

The WTO has 164 members, so 46 members of this EGA, and only 18 actively negotiating for greener trade products, may not seem that impressive. But it’s important to note that the participants in these negotiations actually account for the majority of global trade in environmental goods. That means that some of the benefits of this new agreement would likely extend to the entire WTO membership, so all WTO members could enjoy improved conditions in the markets of the participants of the EGA.

Can Global Trade Go Green?

Global trade can go green, and indeed it must, but it will take a lot of work. The good news is that there are already plans in place and people working on ideas to solve the problems. An EGA is an important aspect of an overall plan, but it’s still only one aspect. Domestically, governments need to create favorable subsidies for renewable energy and sustainable products, not fossil fuels. Furthermore, those in both the shipping and manufacturing industries are already realizing the benefits of going greener. An EGA that can further prod these groups in that direction is urgently needed.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!