NEW DELHI, APRIL 28: THE Minister of State for Commerce and Industry, Mr Jyotiraditya scindia, said that the Union government was looking at ways to reduce the transaction costs for exporters to enable them to compete effectively in the global markets.

The Task Force, set up in October 2009. to prepare a report on transaction costs, is expected to submit its report by the end of june.

He admitted that the Task Force was aware of the costs incurred by exporters ex-factory to the free on-board stage vis-a-vis other nations.

Mr Scindia said, “The Task Force has monetised transaction costs worth $ 12-15 billion, roughly 7-10 per cent of exports and even if we are able to reduce 30 per cent of these costs, the exporting community will immensely benefit.”

He proposed a study of best in breed practices in trade facilitation employed in countries such as Denmark and Singapore.

The commerce Ministry would work closely with the Ministries of shipping, Finance Agriculture, Textiles and Environment to execute its strategy, he promised.

Exporters have been facing aggressive competition from china and other developing countries to capture the markets of the developed countries.

MUMBAI APRIL 28: MEDITERRANEAN Shipping Co. (MSC) has announced  a General Rate Increase (GRI) on the India to North Europe, UK, West and East Mediterranean and Black sea trades.

The rates will be up by $250 per TEU, effective from May 17.

With the global economy gradually emerging out of the recession and exim trade looking up, the prospects for  container shipping have brightened MSC, the world’s second-largest box shipping line, has been constantly up grading its service levels to cater to the increasing volumes and demands of new trade lanes The GRI will enable the company to maintain its services at the highest at the highest levels that its customers expect, says a msc release.

Expeditiously adapting to the changing needs of the market in its services has been a forte of MSC over the years. The line offers the key advantages of independent services, an  extensive services, an extensive service network and global presence through its offices.

Customers thus benefit from a comprehensive liner service provider which is proficient, dependable and unswerving in its commitment to offer the best of services.

NEW DELHI, APRIL 28: Some of the world’s biggest container ships are part of anenhanced Asian service announced for the port of Halifax. one of the shipping groups providing a link between southeast Asia and Halifax said it was upgrading its service to Nova Scotia to include post Panamax vessels. “These are the biggest ships and they require the deepest ports,” said Michele peveril of the Halifax port Authority. Majorport customers, such as Canadian Tire, will be beneficiaries of the new express service to southeast Asia that features the large container ships, she said.

The port of Halifax will be the first inbound North American port for the express service linking the East Coast and Southeast Asia via the Suez Canal, It means there will now be five shipping lines participating in the CKYH Alliance, The five lines that make up the alliance include: K Line, Hanjin Shipping, Yang MIng Line, Cosco container LIne and Mitsui O.S.K. Lines (MoL). The CKYH Alliance commenced service with the port of Halifax Asia, via Panama canal, with eight panamax vessels in May 2009.

Panamax vessels are the largest that can pass through the panama Canal, post-panamax ships are too big for the canal. Nine Post-panamax vessels are part of a vessel -sharing arrangement with Mitsui O.S.K. (MOL). Karen Oldfield, the port authority’s president and chief executive officer, said the service enhancement service, along with the port’s existing Asia services will enhance canada’s trading position, providing fast and secure logistics through an Atlantic canadian gateway port, she said in a news release.

NEW DELHI, APRIL 28: Reduced spending power among Latin american and Caribbean nationals residing in the diaspora resulted in a 6.8 pc drop in the shipping of containerized goods into the region in 2009 compared with the previous year, accoring to a ranking scale released recently by the Economic commission for Latin America and the Caribbean. (ECLAC) Containers being off loaded in Georgetown.

The ranking scale titled ‘Containerized Throughputs 2009-Latin  America and the caribbean’ noted that the impact of the reduced inflow of containerized goods was felt particularly in some small caribbean community countries, Last year Antigua experienced a 10.48 pc drop in container arrivals, the equivalent of 2000 less 20-ft containers while st. Lucia experienced a 16.10 drop in container arrivals, the equivalent of 5,000 less 20-ft containers.

The maximum amount of cargo shipped in a 20-ft container is estimated at approximately 48,000 pounds. The ECLAC survey lists no comparative data for Barbados, Trinidad and Tobago, Jamaica and Guyana, the larger Caribbean territories, however, two local freight forwarders said that container arrivals to their own operations last year were down on the previous year, “Usually, we do not provide those sorts of numbers but our own records indicate that fewer containes were received from countries like the United States and Canada, the countries from which most of our containers arrive,’ the freight forwarding official said.

Since the late 1970s there has been a significant increase in the movement of containerized cargo to Guyana much of which is accounted for the by gifts of clothing and items of food shipped to Guyanese at home by relatives residing in North America and Europe. A similar trend has obtained in serveral Organization of Eastern Caribbean (OECS) countries and the reduced flow of cargo last year is attributed to the global recession and the attendant loss of jobs and reduced earnings by Caribbean people in the diaspora. One freight for warding official said that last year’s drop in barrel arrivals marked some degree in the continuity of a trend that has seen more Guyanese opt for “the logitically more convenient” practice of sending money to relatives. “The availability of more imported goods on the local market, sometimes at cheaper prices has meant that it has now become more convenient for Guyanese abroad to send money home to relatives to buy those items,” the shipping official said.

According to the ECLAC ranking, the port of Santos in Brazil, the largest recipient of containerized cargo in Latin America in the Caribbean experienced a drop of 15.7 pc in container arrival activity while arrivals at the colon and  Balboa port complex in panama also fell last year.

NEW DELHI, APIRL 28: The Indian servies industry is back to its pre slowdown level, with many of its key sectors reporting double digit growth, says a CII survery. “Out of 51 serctors suveyed, 13.72 pc of the sectors have recorded excellent growth of more than 20 pc in 2009-10 This is clearly an improvement over the previous fiscal during which only 5.88 pc had an excellent growth rate,” said the survey.

Another 43.13 pc of the sectors witnessed 10-20 pc increase in output in the fiscal  ended March  2010. compared to 41.17 pc in the previous year, The report which was based on the responses of more than 350 service related industry associtions, organisations and companies in both the private and public sectors, said the service sector clocked higher growth in the third and last quarters of 2009-10.

“The services sector has performed better during 2009-10, mainly on the back of the stimulus package provided by the government and continuance of the incentive measures in cluding retaining service tax at 10 pc in the union budget,” according to CII director general chandrajit Banerjee. About 41.17 pc of the 51 sectors said growth levels were now up to 10 pc while those reporting a fall in output slipped to a meagre 1.96pc.

“The share of sectors recording negative growth rate has significantly declined from 17.65 pc in 2008-09 a clear sing of improvement,” said the report According to ther survery, the telecom and mutual fund industries have emerged as the biggest contributors in the growth of the services industry both seeing growth rates in excess of 20pc in 2009-10.

Others like air passenger traffic, retail trade  advertising; live entertainment, courier and logistics industry, healthcare, education and training services grew between 10 and 20 pc.

The industry chamber in a statement said the government had to simplify tax structures across the country, make access to to crediteasier and develop infrastructure if services were to continue on this high growth trajectory.

ISE SERVICE-India to Europe service, w.e.f. May ‘10 Applicable to shipments on Asia-Europe trade route Rate Restorration (RR): The shipping Corporation of india (SCI) is announcing a freight rate increase on cargo moving ex-indian sub-continent to Europe Sector @US $ 200/TEU, w.e.f. 6th may, 2010 The increase is for all the bookings to North Europe, UK, Mediterranean and Black sea trades The RR Is imperative at this point to meet the overall operations costs and, hence, make the service viable.

As usual the SCI will continue to operate the service with high level of reliability proficiency and overall fast services that its customers have come to expect.

NEW DELHI, APRIL 28: Apart from trade issues, the FTA negotiations between India and the European Union (EU) continue to be stuck over nontrade issues like human rights, child labour and environment The statement by EU parliamentarians comes as Indian negotiators left on Monday night for Brussels for the ninth round of negotiations on the free trade agreement. Sources said all is sues, including rules of origin, trade in goods and services. would be discussed in the new round of negotiations, Also, there is hope that new round of talks will yield some forward movement.

Even though the European Union negotiators’ priority remains trade issues, nontrade matters have the European parliament. “The issues of human rights and social rights…. environmental issues are very important for the European parliament,” said Lean Kolarska Bobinska vicechairwoman delegation for relations with India. she added these are not issues on which EU was ready to copromise

NEW DELHI, APRIL 28: The govt said it is examining ways to reduce transaction costs for exporters to enable them compete better in the though global mariketa. a task force headed by minister of state for commerce and industry of state for commerce and industry Jyotiraditya scindia is expected to submit its report by june end.

Simplification of procedures and transparency issues need to be addressed. cost arising out of inefficiencies in the process can be avoided. scindia said.

He further said the transaction cost estimated to be $12-15 billion by the task force, works out to 7-8 pc of total export value.

“Even if we are able to work on and reduce up to 30 per cent of these costs, we will be rendering a huge benefit to the exporting community,” he said.

The cost in india is almost double than in china and Malaysia. He said members of the group would soon visit Denmark and singapore to study their procedures.

The commerce ministry will work closely with other ministries of finance, agriculture, shipping, textiles and environment for execution of its strategy, he said.

The country’s exports grew by 34.8 per cent to $16.09 billion in February compared to a year ago period. Exporters face aggressive comptition from china and other developing countries for their pie of the developed markets.

NEW DELHI, APRIL 28: India has informed WTO’s committee on safeguards that it had terminated its safeguard investigations into import of eight products, Last year, india had initiated safeguard investigations on eight products unwrought aluminium, aluminium waste and aluminium scraps, Hot Rolled (HR) coils, HR sheets and strips, coated paper and paper board, uncoated paper and copy paper, oxoalcohols, particle board, linear alkyl benzene, and acrylic fibre. The EU and US had raised concern at the WTO over the investi gations. The decision was welcomed by the European Union (EU) and the US. trade diplomata said.

NEW DELHI, APRIL 27: After global recession, the volcanic ash from Iceland has given  the industry another jolt, affecting the country’s exports. In fact, the sudden shut down of European airports in recent past has hit Indian exporters harder than the aviation industry itself. some export associations peg the losses at as high as Rs 1,000  crore ($220 million ) in this period while others say exports of $ 1billion of high end merchandise to the US and Europe may face delays or cancellations. Higher freight rates now being charged by the airlines that have resumend flights are going to add on to costs and adversely affect competitiveness  of indian products in major markets of the developed world. IATA says the global aviation industry has lost $1.7 billion over the span of just a few days The whole problem began when Iceland’s volcano with the tongue twisting name of Eyjafjallajoekull began to erupt throwing metallic ash particles into the air, These particles have the postential of damaging airline enginer and leading to air crashes.