Solid positive growth for global trade expected within three months
Prospects for Korean and US trade brightening, Germany moderating
Air trade outlook drops slightly, ocean trade gaining momentum

The positive outlook for world trade has continued to improve. The DHL Global Trade Barometer increased to 66 points in March from 64 points in January when the newly created index was initially published. With an index value clearly above 50, the DHL Global Trade Barometer continues to signal solid positive growth for global trade within the next three months. Furthermore, the increase indicates that growth is gaining momentum.

The overall good prospects are also reflected in the fact that the Trade Barometer points to an increase in trade activity for each of the seven constituent countries. Compared to the findings in January, the improved global index is mainly driven by an increasingly positive outlook for Korean and US trade. In contrast, the prospects for German trade eased after the strong peak seen in 2017. India continues to show the highest index value of all seven countries for the overall trade predictions, while the UK, after a modest decline since January, scores the same level as China at the lower end of the country ranking.

Index developments are slightly contrasting
Developments in air and ocean trade are slightly contrasting. The global air trade outlook drops slightly by -1 point compared to January, but remains very positive at 70. The outlook for global air trade is pushed downward, as particularly German and South Korean air trade growth is expected to slow down. On the upside, air trade growth in China and the US is expected to accelerate.

Meanwhile, the outlook for global ocean trade improved to 63 points in March from 60 points in January. This growth is also driven by the US and China, together with a strong increase in South Korea, offsetting a slightly reduced growth outlook for UK and German ocean trade.

Big amounts of data are evaluated with the help of artificial intelligence
Launched in January 2018, the DHL Global Trade Barometer is a new and unique early indicator for the current state and future development of global trade. It is based on large amounts of logistics data that are evaluated with the help of artificial intelligence. The indicator has been developed in cooperation between DHL, the world's leading logistics company, and IT service provider Accenture. It is published four times a year. The next release date is June 27, 2018.

If rockets can be reused, then a lot of other things should be too! SpaceX became the first company to launch a resupply mission to the International Space Station on a reused rocket. (Photo by SpaceX)
Today is World Remanufacturing Day! “Remanufacturing is only one part of the after-market solutions that we provide at Panalpina, but it is a very important part and it looks set to become even more important for our customers in the future,” says Mike Wilson, global head of Logistics and Manufacturing at Panalpina. Remanufacturing and the circular economy, something Panalpina has talked about before, go hand in hand.

In the past, supply chains have grown longer with the trend for manufacturing companies to move production to low cost geographies far from customer demand.

However, these elongated “take-make-dispose” supply chains that have been successful for many years are rapidly losing relevance in light of the transition to shorter, circular supply chains. The world is already seeing a shift away from centrally manufactured products which are shipped through a global transport network and sold once, to more localized manufacturing with products returning and being resold multiple times through their lifecycle.

Commercial opportunities

This shift towards the circular economy is being driven by manufacturers and retailers who see the enormous commercial opportunities in the after-market supply chain, which includes product upgrade services, spare parts sales, product repair, remanufacturing and brokerage opportunities such as selling used products into new markets. All of which are services that Panalpina provides as part of its wider LMS offering.

“The transition from take-make-dispose supply chains to the circular supply chains of the future is happening faster than we expected,” says Wilson.

Customers increasingly ask for Panalpina’s help to identify and exploit commercial opportunities in their after-market supply chain, whether this is about increasing their after-sales revenues, reducing operating costs or freeing up inventory, or a combination of all three.

Panalpina helps its customers take advantage of the transition to circular supply chains in multiple industries across the globe; remanufacturing mobile phones in Dubai, repairing telecoms equipment in Mexico, repacking fashion products in the US and screening and testing optical equipment in Germany.

Journey to the circular supply chain

A broader view of the opportunities that circular supply chains offer can be found in a recent white paper produced at the Panalpina Centre for Manufacturing and Logistics Research at Cardiff University.

Authored by Wilson and titled Journey to the circular supply chain, the industry report on the future of manufacturing supply chains and logistics has been endorsed by the European Remanufacturing Council.

The European Remanufacturing Council, of which Panalpina is a leading member, was recently recognized at the Davos World Economic Forum as a best practice example of industry and academic collaboration. The Council supports companies and governments in making the transition to circular supply chains.

Environmental and societal benefits to be gained as well

Although the transition to circular supply chains opens up enormous commercial opportunities, there are environmental and societal benefits to be gained as well. For World Remanufacturing Day, Panalpina headquarters supported a local charity by collecting, fixing and repurposing used laptops, tablets and phones from Panalpina employees that will be donated to a school in Africa.

“We want to show that as individuals as well as a company, Panalpina is committed to making the most of the commercial and environmental opportunities in the transition to circular supply chains,” says Andy Lahy, global head of Logistics Strategy and Innovation at Panalpina, who is behind the initiative.

The reuse of products must not always be as complicated as rocket science. Every contribution counts to make the circular economy take flight.

Service center for air freight and ocean freight queries
Advice and support provided on all issues relating to customs and freight documents

DHL Global Forwarding has launched a helpdesk in Berlin that is custom-tailored to the needs of start-ups. The logistics professionals working at the DHL Start-Up Helpdesk assist dynamic start-up entrepreneurs and expanding start-up companies in the areas of logistics and supply chain development to enable them to achieve success both in and beyond Germany.

"Our customer base of start-ups with global operations is growing rapidly at our branch in Berlin. Understandably, they have a greater need for advice and services, particularly in the initial stages," explains Joachim Hermansky, Vice President Customer Service Germany at DHL Global Forwarding. "That is precisely why we trained up a young team that acts as a link between companies going global and traditional handling departments. They understand both worlds and that allows them to provide swift and flexible support."

The Start-Up Helpdesk at DHL Global Forwarding helps young companies enter the international business market. The digital world and e-commerce accelerate and simplify cross-border expansion for entrepreneurs. However, what requirements need to be met if products and goods are to be offered in other countries, and perhaps even outside the European Union, with immediate effect? The same applies to the procurement of products or materials and components for their own business when it is essential to deliver or receive the goods on time, and with the correct shipping and customs documents. That is where the Start-Up Helpdesk's work begins. Have the goods been properly packaged? What transport mode is the best to be used? What customs requirements need to be met for imports and exports? What shipping documents need to be furnished? Have the goods been properly insured? These and many other questions suddenly become relevant in order to successfully develop and manage a business's supply chains. The start-up team at DHL Global Forwarding is the right port of call for all these issues. DHL's global network makes it possible to find the right transport services and solutions in no time and, if necessary, to contact experts able to deal with issues relating to all aspects of customs, regulations and transport routes.

End-to-end solution for manufacturers, maintenance & repair organisations, airlines and leasing companies
Maximum safety through certified processes and systems
First modular solution for aircraft interiors up to sustainable disposal
Hamburg / DE, April 10, 2018 – Passenger comfort means passenger loyalty. The cabin interior is the essential passenger facing element of the airline. Demanding passenger requirement and continuous technology innovations lead to more frequent interior refurbishment.

Securing the on-dock dates of aircraft manufacturers as well as keeping the planned downtime for interior refurbishments to a minimum is of vital importance for manufacturers, maintenance & repair organisations, airlines and leasing companies. With KN InteriorChain, Kuehne + Nagel has launched an integrated logistics solution actively addressing the challenges of the interior aerospace supply chain – both of production logistics and aftermarket interior refurbishments. The first of its kind solution was announced today at the Aircraft Interior Exhibition in Hamburg, Germany, in response to the growing need for frequent interior refurbishments in the aerospace industry.

“KN InteriorChain is the outcome of Kuehne + Nagel’s close collaboration with customers and our indepth aerospace expertise”, says Yngve Ruud, Member of the Management Board of Kuehne + Nagel International AG, responsible for airfreight. “This new solution allows us to provide our aerospace customers with a truly holistic approach to their logistic needs while complying with the stringent industry requirements. KN InteriorChain is another clear proof of Kuehne + Nagel’s ability to deliver customer-focused, solutions-oriented services based on logistics and data management knowhow.”

Jakob Straub, Head of Aircraft Services & Line Maintenance at SR Technics: ’’Kuehne + Nagel and SR Technics have been cooperating for many years. When SR Technics was awarded a major aircraft refurbishment project for a series of aircraft, there were new challenging dynamics to secure the downtime of the aircraft. A one day delay would have significant impact on the airline operations and passenger loyalty. Kuehne + Nagel understood the challenges. We therefore will use KN InteriorChain as a safeguard of aircraft refurbishments projects.”

The modular solution KN InteriorChain includes supplier order management, multimodal transportation and warehousing as well as value-added services such as kitting, packaging, rework and disposal. To ensure cabin material, which is crucial for passenger comfort, is both handled appropriately and in line with the respective requirements, Kuehne + Nagel`s processes are certified against the EN/AS 9100:2016 standard. All rework activities are carried out by certified EASA part-145 mechanics while most disposal activities are supported by an AFRA certified partner. Monitoring and management of material flows across all means of transportation and warehousing is guaranteed through an integrated online ordering, cargo management and material management system.

The solution is based on Kuehne + Nagel’s global aerospace network, its state-of-the-art IT infrastructure ensuring connectivity and visibility, competence centers with 24/7 support and its AOG Desk structure.