trade facilitation & compliance “back to the future” gerwin zomer (tno), efreight conference...
TRANSCRIPT
Trade facilitation & compliance
“Back to the future”
Gerwin Zomer (TNO), eFreight Conference 2012, Delft, 10-05-2012
Historic “Delft”
Delft, 1572: William of Orange leads
Dutch resistance against Spanish
occupation
Eighty Year’s War Delft was de
facto capital of Holland
Delft, 1584: William was killed at
(Museum) Prinsenhof Cold Case
exhibition
Since then, the Royal burial is in the
New Church in Delft
City of Delft, painted by Johannes Vermeer, 1660
Delft, Old Church
William of Orange killed
Dutch East India Company (VOC)
Founded in 1602 by 6 Dutch cities, incl
Delft (Delft Charter: 7% shares)
Bypassing the Malakka Strait
Monopoly on Asia-Europe spice trade
First multinational issuing stock
4785 ships, 2.5 million tons, 1 million
European workers
On top: 25.000 employees
Balancing supply & demand
controlling the market
Controlling both Asia-Europe & Intra-Asia
trade (spices, textiles & silver)
Demanding administrative governance
“Haags Besogne” Replica Vessel ‘Batavia’
Delft trade history
Delft & VOC
Delft Charter, 7% share in VOC
Delfshaven Chinese porcelain port
Rise and fall of porcelain production
(Delftware)
1647: Chinese Civil War
1653: Porceleyne Fles (Royal Delft)
1650-1750: Hundred factories in Delft (old
beer breweries)
Stong shipbuiling sector Delfshaven
By 1800: Fall
Wedgwood (cheap, innovative)
Only Porceleyne Fles survived
Delftware imitation from Japan! Delftware, Royal Porceleyne Fles
Delft blue mark, Porceleyne Fles
Haags Besogne – The VOC Control Tower
Board wanted detailed insights in the business in Asia
Tasks Haags Besogne
Control based on source documents: all relevant trade
correspondence (factory orders, accounts, contracts, letters etc)
Voyage planning: capacity & equipment planning
Forecast & capacity expansion plans (new vessels)
International trade today
Globalisation
Much the same (ship manifest,
contract of carriage, trade
arrangements)
Exponential growth
Complexity
Need to regulate
Economic (import/export/transit)
Fiscal (VAT, fraud)
Safety&security (FAL, ENS/EXS)
Health (veterinary, fytosanitary)
Environment (TSCA)
Trade compliance
Increased administrative burden
Threat seamless supply chains
ImportBillion USD Export
Billion USD
1 United States 1605 1 China 1202
2 China 1006 2 Germany 1126
3 Germany 938 3 United States 1056
4 France 560 4 Japan 581
5 Japan 552 5 Netherlands 498
6 United Kingdom 482 6 France 485
7 Netherlands 445 7 Italy 406
8 Italy 413 8 Belgium 370
9 Hong Kong, China 352 9 Korea Republic of 364
10 Belgium 352 10 United Kingdom 352
11 Canada 330 11 Hong Kong, China 329
12 Korea, Republic of 323 12 Canada 317
13 Spain 28813 Russian Federation 303
14 India 250 14 Singapore 270
15 Singapore 246 15 Mexico 230
Top 15 8142 Top 15 7889
64% 63%
Total 12682 Total 12490
Trade facilitation What’s at stake?
Trade facilitation costs = 1 to 15% of landed cost of imported good
OECD: 1% TF improvements to world economy US$40 billion
Hummels, 2001 / Djankovet, 2006: Each additional day of delay prior to
shipment reduces trade by more than 1 % (Djankovet al., 2006)
TF: Ask traders what their problems are
Trade facilitation the future
CASSANDRA
Control through SC visibility
Trust through transparency
Capturing reliable source data (stuffing/consolidation)
Supported by global data pipeline,
Connectivity with Single Windows
Common ontology “Logistics facebook”
Minimise transaction costs to share data in hybrid communities
System based control: Facilitations by being in control together
Self assessment (MCC+)
Green lane / pre-clearance / entry in records / no declarations
Government piggy back on SC risk management
Coordinated Border Management (CBM)
Pipeline configurations in CASSANDRA
Combination of
Shipper backoffice systems (ERP, WMS)
Freight forwarder systems
Port Community Systems
Supply chain visibility platforms
Customs solution providers
Monitoring & surveillance systems (RFID, eSeals, sensors, …)
…
Interesting developments
PCS moving towards hinterland logistics visibility systems
Consolidation in customs solution provider market Pan-European oligopoly
Integration platforms becoming a commodity product
CASSANDRA business case
Bus. Intell Interoperability Transparency
Minimise TTC(incl cost of compliance)
Sustainable trade & logistics business
models
New trade facilities (MCC+)
Supply chain optimisation
Synchromodal transport solutions
Corporate social responsibility
Seamless & efficient
supply chains
Sustainable economic growth & enhanced competitiveness
Being in controlenabler enabler enabler enabler
Thank you for your attention!
Gerwin Zomer
TNO – Sustainable Transport &
Logistics
T: +31-622522983
http://www.cassandra-project.eu
… The money is out there …
… let’s grap it …
… and share the benefits!!
That’s not fair!