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Developing countries can reduce their shipping costs by 30 per cent by cutting paper work and upgrading infrastructure by 2020, says DHL Global Forwarding CEO, Mr Hermann Ude.
Mr Ude said here that world trade growth, which grew from a third to over 50 per cent was an important driver to economic growth, and that inefficient logistics was a roadblock to market growth, Exim News Service reports.
"For example, Brazil, Russia, India, China (BRIC) countries require twice as many export/import documents compared to Singapore or Germany," he pointed out. "Paper work can be the single-most time consuming element in the life of a shipment, with days lost and costs increasing as products spend time in warehouses."
Of the 60 days, it now takes from order to delivery in a typical ocean freight shipment from India to Mexico, goods were on the move for less than half of that time, with over 323 days spent on export and import documentation and Customs.
"Customs and security are of paramount importance in this day and age, but increased physical security requirements alone are not the panacea. BRIC countries do 10 times more physical inspections than best-in-class countries without improving security," he underscored.
"Infrastructure bottlenecks or sub-standard transport facilities can force logistics companies such as DHL to use sub-optimal routes in order to guarantee delivery and this increases costs. For example, insufficient port capacity can lead to 15 per cent to 30 per cent higher sea transportation rates on otherwise comparable routes and these costs come with additional carbon dioxide emission," he stated.
"Savings are not the only benefits emerging economies could enjoy. Trade transit times could also be cut by 65 per cent, and 20-40 per cent more trade generated," he added.
Source: Transport Weekly
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