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Jan.9, 2017

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26 THE JOURNAL OF COMMERCE www.joc.com JANUARY 9.2017 2017 ANNUAL REVIEW & OUTLOOK SHIPPERS EXECUTIVE COMMENTARY Aa AGRICULTURE AND COMMODITIES TRANSPORTATION COALITION PETER FRIEDMANN Executive Director www.agtrans.org OUR MISSION ESTABLISHED 28 years ago is even more critical today. Every- thing produced in the US — agriculture, forest products, commodities (resins) — can be sourced elsewhere in the world. The US may produce the best, but if products can't be delivered dependably and affordably, our foreign customers will find a provider in another country. Our highest priorities for 2017 will be to assure that governments/regula - tors, carriers, marine terminals, and longshore labor understand that our US exports are unbranded, highly fungible, and highly sensitive to foreign competi- tion. We can't abide disruption, and unnecessary costs or burdens. We must assure that our success in exempting US exporters from the ocean carriers' bizarre SOLAS verified gross mass scheme is permanent. The solution proposed by Jim Newsome, president and CEO of the South Carolina Ports Authority, that the terminals weigh the loaded containers, must be honored. In 2017, we will continue to stamp out every remaining instance when a carrier, or terminal or forwarder demands the VGM from the US exporter. In 2017, our members will continue to meet face-to-face with senior ocean carrier executives, and separately, with longshore labor leaders. Moving from 18 ocean carriers to 10, further consoli - dated into just three alliances, means larger ships, less competition operation- ally, fewer sailings for exporters to select from, and more stress on terminals and labor. These meetings produce tangible benefits, from voluntary waiver of demurrage and detention fees, to pro- ductivity enhancements, night gates, etc. We will continue to work with all parties as the first and best option, but will not hesitate to seek government intervention when necessary. AMERICAN ASSOCIATION OF EXPORTERS AND IMPORTERS MARIANNE ROWDEN President and CEO www.aaei.org THERE ARE TWO important changes this year that will affect international trade: the popular rejection of global- ization, and international trade, to the extent that it means economic integra- tion, and, the growth of e-commerce as a part of international trade. From Brexit, the Colombia vote on the peace agreement with FARC rebels, and the US presidential election, there is an unmistakable trend of citizens in Western democracies shouting "Stop!" The desire of people to ask tough questions of their political leaders about how they're faring in the global economy is unleashing forces that are beyond their ability to cope and adjust, let alone plan for the future. Political leaders no longer can ignore the dislo - cations caused by globalization and the problems it does not solve because now people are demanding attention. Global trade volumes have been flat since 2008, hence the overcapacity of ocean shipping, except for e-commerce, which is growing 20 percent a year. E-commerce is a significant disruptor as to who engages in global trade, what commodities are shipped cross-border, trade patterns, and the supply chains of those goods. Part of the global trade backlash results from the perception that the multilateral trading system and free trade agreements only benefit multinational corporations. E-commerce will distribute the benefits of trade more widely by lowering the barriers of small businesses to access the world's consum - ers, who will have more product choices at lower prices. While not all global trade will migrate to e-commerce, significant volumes of consumer products will. The challenge for those of us who believe in both democracy and global trade is to find creative solutions to the concerns raised by citizens who seek to regain some control over the choices in their lives. Cc COUNCIL OF SUPPLY CHAIN MANAGEMENT PROFESSIONALS RICK BLASGEN President and CEO www.cscmp.org ONE OF THE most important develop- ments is how supply chain discipline is steadily becoming an integral part of the global business model. Inte- grated into overall business strategy in companies that get it. Successful companies recognize that supply chain professionals hold the keys to increased productivity and better bottom lines. Identifying, hiring, and retaining top talent also will continue to be at the top of corporate agendas. Today's talent will be valued not only for its cost-cut - ting skills, but also for its expertise in doing the things that lead to company growth. On a side note, a pet peeve of mine: We have to get our discipline as a destination as a career into lower levels of our education system. Supply chain leaders will play more prominent roles in their companies as they, more often than not, will be members of the C-suite. Their respon - sibilities will continue to increase and expand to include oversight of not only their organizations' supply chains, but also of all areas of business. Another area of interest is how we as supply chain professionals can influ - ence and help shape government policy. The Advisory Committee on Supply Chain Competitiveness was launched in October 2012. It was formed to pro- vide the secretary of commerce with consensus advice from the private sector, including elements of a compre- hensive national freight infrastructure and freight policy to support US supply chains and export competitiveness. Our We must assure that our success in exempting US exporters from the ocean carriers' bizarre SOLAS verified gross mass scheme is permanent. While not all global trade will migrate to e-commerce, significant volumes of consumer products will. A s pa r t of it s a n nua l ef for t to col le c t i ndu st r y p er sp e c t ive a b out t he yea r a head d i re c t ly f rom t hose on t he g rou nd — you , t he i ndu st r y st a keholder s — The Jou r n a l of Com merce reache d out to t hose i mpac te d most by t he rapid ly ch a ng i ng dy n a m ic s of to day 's supply ch a i n : b enef icia l ca r g o ow ner s a nd t hose who represent t hem . The resu lt i s a ser ies of f resh voices reg a rd i ng t he ch a l leng es a nd opp or t u n it ies 2017 present s . A re you l i sten i ng , ser v ice prov ider s?

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