E-commerce: a risky boom for international supply chains

Air freight peak season is in full swing ? and about to get even busier.

Big e-commerce dates are all happening in November, starting with Singles’ Day on November 11, followed by Black Friday on November 23, and Black Monday on November 26.

While Cyber Monday and Black Friday are traditionally US events, and Singles’ Day is thought of as a Chinese occasion, you can see these growing into global shopping (and shipping) events, with the air freight volumes to prove it.

E-commerce is the fastest-growing sector driving global air freight volumes. Lucas Kuehner, Panalpina’s global head of Air Freight, said in a blog post earlier this year: “We have gone from zero to an estimated 20,000 tons [of e-commerce air freight] in only two years. The actual figure is likely to be higher.”

Big online marketplaces and their suppliers are Panalpina’s most important e-commerce customers. This market is getting bigger as traditional stores are also increasingly turning to e-commerce, and to air freight. In its classic role as a consolidator, Panalpina is also interesting for smaller e-commerce customers.

“When doing e-commerce air freight you have to know exactly what you’re doing and deliver with speed and consistency. That includes staying on top of customs as well as dangerous goods and security regulations, because nothing can go wrong,” said Kuehner.

The boon and bane of freight consolidation for international e-commerce

Unhindered by national borders, legions of consumers will go online this month to purchase products online. After the final, effortless click, their international orders will be consolidated, transported and de-consolidated ? often multiple times.

“Only freight consolidation can make international e-commerce shipments affordable in the first place. Otherwise, transport costs, especially for air freight, would be too high and often in no relation to the price of the purchased product,” explains Kuehner.

“But the consolidation comes with challenges. In many cases, the original shipper details and the product information get diluted by a single commodity list provided under the name of the consolidator, who deals directly with a freight forwarder such as Panalpina. That makes e-commerce cargo riskier than other cargo.”

Freight forwarders, airlines, regulators and authorities are faced with three main challenges:

Firstly, third-party screening for compliance and security becomes difficult since the original shipper details are not transparent at the time of shipment booking.
Secondly, counterfeit and other forbidden illegal items can lead to delays and customs penalties for the shippers.
Thirdly, hidden, falsely declared or undeclared dangerous goods can jeopardize flight safety and the environment.
These challenges need to be addressed, because e-commerce is here to stay. It is estimated that there are currently over one billion online buyers in the world, and online shopping transactions continue to evolve rapidly as global e-commerce retail sales are expected to exceed $4.8 trillion by 2021.

Ensuring compliance with customs, dangerous goods and security regulations

So what does Panalpina do to mitigate risk in the international e-commerce supply chain as much as possible?

First of all, Panalpina handles e-commerce freight as a restricted commodity, meaning it requires prior approval from the company’s standards and governance experts, who evaluate the shipper, the commodity, and other shipment parameters and identify potential risks.

Panalpina has put in place global standard operating procedures for e-commerce freight to ensure a safe and seamless process from booking acceptance to handover to the carriers.

Furthermore, Panalpina has segmented e-commerce customers into three risk groups: low-, medium- and high-risk.

The company has also enhanced its shipper’s declaration for regulatory compliance to specifically address e-commerce-related risks. The amended declaration allows Panalpina, with the consent of the shipper, to perform physical checks and cargo security screenings when deemed necessary.

All of these measures mitigate risk in international supply chains that are inherent to the global boom of e-commerce.

For the 10th edition of Singles’ Day this coming Sunday alone, Alibaba expects to receive more than one billion orders.

The majority of these orders will come from within China. However, with Alibaba’s significant and growing presence in international markets across Asia, Europe and Latin America, scores of products will have to be shipped to consumers the world over too.

Panalpina is here to help in the background, playing a discreet but important role in ensuring that international e-commerce shipments comply with customs, dangerous goods and security regulations.


平成29年度補正予算「地域文化資源活用空間創出事業(商店街支援事業)」の第3次公募

文化イベントを契機とした地域の活性化、名所・観光地・食文化等、地域文化資源と連携した空間創出によって、にぎわいを創出し、外国人観光客等を増加させるとともに、これらと連携した商店街の活性化を支援する事業です。この度、第3次公募を行います。

実施期間 2018.11.02 ~ 2018.12.14

http://j-net21.smrj.go.jp/snavi/Contents/0000138321?188211


IT導入補助金【三次公募】公募期間延長

平成29年度補正サービス等生産性向上IT導入支援事業

分野1:経営改善・経営強化 設備導入・運転資金 ネットワーク・IT
分野2:補助金・助成金、委託費
地域:全国
実施機関:サービスデザイン推進協議会
実施機関からのお知らせ

IT導入補助金は、中小企業・小規模事業者等の方々が課題やニーズに合ったITツールを導入する経費の一部を補助します。これまでのたくさんの活用者の声を元に、要件等の見直しを行いました。三次公募の公募期間が延長されました。(期限2018年12月18日まで)
http://j-net21.smrj.go.jp/snavi/Contents/0000138463?188211


Panalpina How to transport concept cars and what is a car clinic anyway?

A car clinic is a market research instrument of the automotive industry where test vehicles are presented in a studio or a closed test track together with corresponding competitor models. The test car is usually a prototype that is road-worthy down to the last detail and does not differ much from the planned production line.

Car clinics are used by manufacturers to present concept cars to limited audiences and receive their feedback. This allows them to assess design concepts and define solutions for the interior considering potential consumer groups in different cultures and market segments before product launch. Strict secrecy must be maintained.

Under the scope of industry vertical Automotive, we often transport top secret prototypes between design and test centers, mainly in Europe, America, and Asia, for the world’s leading automotive brands. The service includes vehicle placement at multiple events, which can occur in rapid succession due to the tight schedules preceding a new model launch.

The cars are shipped by air to meet the strict timelines while maintaining confidentiality. Panalpina’s PAN-CAR(e)tainers are used to safely mobilize and protect the secret models from unwanted publicity.




プロフィール

  • Twitter

J-Log

エントリーリスト

カテゴリーリスト