Going by the recent twist in the global supply chain fuelled by geopolitical concern, regions were braced with trade draught coupled with high inflation rates across geographies notably in the EU and the US. However, with trade targets on the table, an effort is made via trade extra to guide us on the need to prioritize trade reroute.
As regions head towards winter, it became even clearer that specific commodities or products need to be delivered to the markets within the bloc and the US and even Africa precisely before winter makes its fall, against this background, being inventive by adopting a trade reroute strategy that ensures clients (consignees) are, firstly, guided accordingly in order to ensure that these specific commodities are legally ordered and shipped from specific markets and, in turn, undergo reroute via a non-traditional transit route to a market void of geopolitical concerns has become increasingly paramount.
It’s worth noting that the aforementioned markets which constitute a large number of the world’s economies are indeed robust, however, this accounts for an appreciable proportion of the world’s GDP, yet, prone to on the verge of making its fall season – winter. Hence, should these nations be without commodities like agro, fertilizer and energy! Winter could be unbearable. As a matter of significance, to work ahead of the curve by way of rerouting shipments from specific markets to a market void of current trade concerns should be considered an inevitable measure, notably for the purpose of trade and financial recovery.
Prior to the practical details on how you could legally walk around these transit corridor from any market, I will advise that clients (these consignees or merchants) are convinced about this development while noting that your quote will differ per trade from the usual based on this step.
To put things nicely down, as part of your plan, clients should be made to understand that terms per shipment are clear and convenient for all consignees. Noting that it’s rather unhealthy to run a trade deal in this quarter of the year and secure another when clients are left without an option due to dissatisfaction over lumped tariff. In my opinion, I will advise that you (the shipper) ensure that tariffs and trade terms are kept within the realm of possibility – convenient for all parties even as you scale up in this trajectory. Bearing in mind that multinationals companies that you’re familiar with today such as Maersk and MSC once started on a gradual note, then trust was built in the process as clients saw that they’re competent and reliable and those qualities were the icing on the cake that got them on this flight, and you can replicate this.
Once trade conditions are kept within the realm of possibility, trust will be built, and then consistency, which meant turnover that represents the desired trade volume, thus, your firm’s financial rebound.
Since food inflation has begun to make its contribution, I believe we’ve all started to see the corresponding figures. However, given the situation in the fertilizer market, we can conclude that food inflation will most likely not be a short-term phenomenon. This also means that we’re only at the very beginning of the supply chain crisis even as the already impacted commodities continue to make their contribution. Hence, to stand out as an expert in this sphere of shipping business should be our watchword, notably getting deals done. Now, let’s put things nicely down with regards to a new transit corridor that will help you edge ahead irrespective of the trade destination.
For instance, Russia as a market accounts for virtually all that Europe and the US need to address the rising energy crisis including other commodities that are needed across other regions of the world. To get this through, there are a number of companies and consignees determined to access these commodities, yet, not through the traditional transit routes due to geopolitical concerns, which calls for an innovative and expert approach. Now, the transit route.
THE NORTH-SOUTH TRANSPORT CORRIDOR
The subject transit route is a newly developed transportation corridor known as Caspian-to-Gulf intermodal route specifically for Russian and Belarusian Cargo that connects the Persian Gulf. In the meantime, the route is proven to be very significant judging by the current economic climate with regard to trade. Should you advise consignees to order Russian goods (readily accessible and affordable) beyond China and Iran borders, it will have to go through the North-South Transport Corridor by rail to Astrakhan; across the Caspian Sea by freighter to Bandar Anzali; overland across Iran by truck to Bandar Abbas; and onward to India by water, which will then be shipped by the Islamic Republic of Iran Shipping Lines (IRISL), so, partnering with the latter shipping company is important.
But, what’s the significance of the North-South Transport Corridor to your trade ambition! This is significant because in the subject markets (Russia & Belarus) lies these commodities that are needed by most companies, farmers and consignees across the world. However, to get around this, you could serve as a consultant to these consignees or serve at both ends. This means advising consignees on how to place their order, and, in turn, have it shipped through your firm to place of final destination.
The overall voyage time is believed to be 25 days, the transit time from Nhava Sheva through Iran, with this you should know how to factor in the freight and local tariff. Bearing in mind that this will entail handling and logistics costs per trade.
SHIPPING AGENT/ THIRD-PARTY COMPANY
As we double down on this episode of trade extra, it should be borne in mind that shippers intending to engage in trade reroute precisely through the North-South Transport Corridor will need to partner with Shipping Agent precisely at the port of transhipment (India) for onward shipping and logistics purpose.
This partnership is significant lest your trade reroutes attempt become a joke. The reason is that, for every trade, your partner at these ports of transhipment will have to reroute the subject shipments (wet or dry cargo) to the actual market. However, the good news here is that these shippers or shipping companies located at the points of transhipment are readily available and eager to render this service. With geopolitics increasingly a challenge in this sphere, one could argue the way forward, which begs the question!
- How do you intend to go about trade reroute with trade volume and financial target seemingly farfetched?
- What’s your plan prior to winter as geopolitics and inflation rates continue to gain momentum?
- Given inventive measures, is your trade reroute approach yielding results?
WHY PRIORITIZE TRADE REROUTE
Judging by the current economic climate with respect to trade, it’s significant to take advantage of trade reroute since the ongoing concern within the axis of trade is rapidly gaining momentum on every passing day precisely in the EU even as winter inches close to its fall, the US market appears to be somewhat in the same position but not as that of the bloc. Since this has a great influence on the global supply chain, hence, trade is impacted across geographies.
Nonetheless, the benefits of trade reroute at the moment are totally enormous, we can only mention but a few. In view of this, a step in this trajectory should be considered a healthy affair for your trade ambition as well as your financial recovery. According to experts’ analysis of the current situation, as markets tighten prior to winter, trade via these routes will undoubtedly mean incremental gain that will overwhelm the expectation of shippers due to the global quest for these commodities precisely in the aforementioned markets, yet, Africa isn’t left out of this.
Equally, as part of the icing on the cake, quote per trade will require some level of modification and should be seen as a big plus toward your financial inflow. However, with trade volume being our priority, shipment tariffs should be kept favourable for all parties.
Lastly, lest I leave this submit in piecemeal, except I have you engage in trade reroute. Therefore, take a step in this trajectory irrespective of the target market or trade specialization and share your experience with us.
- Have you engaged already or still wondering how?