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UK SME exports show marked growth, up 30% since 2016

UK SMEs have made significant inroads to increase their exports since 2016, according to new research from Royal Mail released today to support Small Business Advice Week. Over half (52 per cent) of UK SMEs sell to customers outside the UK, up from 40 per cent in 2016. However, this means that just under half of UK SMEs are limiting growth opportunities by continuing to focus on domestic sales alone.

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UK SME exports show marked growth, up 30% since 2016

UK SMEs have made significant inroads to increase their exports since 2016, according to new research from Royal Mail released today to support Small Business Advice Week. Over half (52 per cent) of UK SMEs sell to customers outside the UK, up from 40 per cent in 2016. However, this means that just under half of UK SMEs are limiting growth opportunities by continuing to focus on domestic sales alone.

Cost and complexity of getting through customs (34 per cent), knowledge of the market (20 per cent) and risk associated with currency conversion (19 per cent) are some of the factors putting off UK SMEs selling to customers outside of the UK.

Europe is currently the most popular region for UK SME exports. A quarter (25 per cent) of these businesses already sell within the EU and would like to seek opportunities to sell outside the EU. Thirteen per cent already sell outside the EU and will be seeking more opportunities to do so. Over the next five years, UK SMEs would like to export 20 per cent of their goods.

While domestic online marketplaces are popular among SMEs looking to grow their UK customer base, only four in ten (37 per cent) sell products on international marketplaces. While this represents a 60 per cent increase from 2016, the figures suggest that many are missing out on the huge sales potential such marketplaces offer.

Exporting UK SMEs expect almost a fifth (17 per cent) of their sales to come from outside the UK this Christmas. This peak sales period is increasingly viewed as an opportunity to drive further growth through international sales, as well as to take advantage of changes in currency rates.

A spokesperson for Royal Mail said: “Expanding your business overseas might seem like a daunting prospect. But, the reality is that ecommerce is driving global trade. If UK SMEs want to benefit as a result, they need to expand into international markets. Many of the perceived barriers our research has identified can be easily addressed. As the proud delivery partner of the UK’s small businesses, we have pulled together some key hints and tips to help business owners who want to take the leap.”

If you are looking to start targeting international customers or to increase your visibility overseas, follow these simple tips from our experts at Royal Mail:

Make your delivery charges affordable

Retailers should offer affordable delivery to overseas customers, otherwise they won’t buy. The cost of carriage should not exceed one third of the price of the goods and free delivery is an attractive option for many customers, if it makes sense.

Be clear about customs charges

Most non-EU shoppers are concerned about customs charges – many websites have intimidating warnings, suggesting that customs charges can often be prohibitive. However, sales within the EU incur no customs charges at present.

Make sure international payment works

Most international buyers use MasterCard or Visa and Maestro is becoming increasingly popular. Also consider offering Paypal.

Translate your website

If you have identified a target market overseas that is non-English speaking, then translate your website and make sure it is searchable in the target language.

Convert your prices

Create a simple to use tool that will translate your prices into euros, dollars or the currency of your target markets.

Provide customer support

It is important to offer some degree of support in the local language. Offer an email, phone number or live chat support and remember to consider time differences.

Check out the local competition

Make sure you understand the local pricing structures, service expectations and nuances of your target country.

Wherever you want to send a letter or a parcel, at Royal Mail we can deliver. Our outlook and our networks are international. We provide letter and parcel services to and from countries around the world and have established global reach with all postal authorities.

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Freight Forwarding

BDP International enters US customs brokerage portfolio

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BDP International enters US customs brokerage portfolio. Image: Pixabay
BDP International enters US customs brokerage portfolio. Image: Pixabay
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BDP International, a leading privately owned global logistics and transportation solutions company has announced the acquisition of DJS International, a Dallas-based customs brokerage and freight forwarding company.

DJS provides customized logistics solutions to a diverse group of more than 800 long-tenured customers across all modes of transportation. As a proven leader in international trade, transportation and customs brokerage services, DJS will readily complement BDP’s diverse portfolio of logistics and global trade management solutions, with trade compliance and inbound logistics as key focus areas.

“The similarities between our two companies are astounding; both built from humble beginnings, family-owned and operated, strong customer relationships, and both expanding in prominence as major global players in the industry,” noted BDP Chairman & CEO, Rich Bolte. “Trade compliance continues to be filled with new complexities and challenges; it’s a major focus area for our customers and therefore it was a natural fit to extend our reach in this area of expertise. We’ve always had a significant presence in the US Gulf region but with DJS we can provide a wider array of specialized and customized solutions for our customers in this new normal world.”

DJS will operate as a subsidiary of BDP, guaranteeing access to BDP’s entire global network and portfolio of services. BDP and its partners will reap the benefits of DJS’s proven position as a leader in trade management. With this new partnership, BDP International and DJS customers can expect a unique service experience backed by a combined century of industry know-how, expertise, and experience.

“Our team at DJS is a family, and we pride ourselves on the notion of delivering service excellence to our customers – we adapt and fit to their ever-changing needs in this complex world,” noted David Meyer, DJS president and chief operating officer. “We wanted to partner with a company who had similar corporate values rooted in delivering service excellence and look forward to working with our 5000 new BDP family members while leveraging BDP’s technology, visibility, and global presence to continue helping our customers streamline and simplify their supply chains.”

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Parcel

NZ Post plans to invest close to $170 million on infrastructure – starting with a new Wellington ‘super’ depot for parcels

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NZ Post plans to invest close to $170 million on infrastructure - starting with a new Wellington ‘super’ depot for parcels. Image: Flickr/ 70_musclecar_RT+6
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The investment programme begins with construction of a new ‘super depot’ for parcels, in Grenada, Wellington. The programme also includes a new processing centre in Wiri, Auckland, due to open in 2023, and an upgrade to the Southern Operations Centre in Christchurch in 2022.

The Wellington super depot is due to open in 2022. NZ Post plans to invest around $18 million in the latest global technology that will sort and scan parcels at a much faster rate than what we have now.

“We know that customers really want complete visibility of where their parcel is at all times of its journey – and this technology will improve our ability to do this,” says NZ Post Chief Executive, David Walsh. “We’re making this multi million dollar investment to support New Zealand businesses – both growing new businesses as well as major ecommerce giants.

“NZ Post is forecasting significant growth in the amount New Zealanders will buy online in the next decade – this was before the explosion in online shopping during the COVID-19 period. Last year online shopping in New Zealand grew 13% with almost 50% of adult New Zealanders now shopping online, and we are expecting this growth to continue. We’re pleased to be able to invest confidently in our future, to meet the growth in online shopping.

“The depot will have a 10440 square metre processing floor – about the size of a rugby field – with plenty of room for processing New Zealanders’ parcels.

“We are proud to be contributing to the Wellington regional economy over the next two years, with the projects main contractors, Aspec Construction Wellington LTD, expecting to employ around 350 people through 60 sub-contractors on this project,” says Ash Pama, the property owners’ representative.

During the COVID lockdown period, NZ Post received over 3.5 million parcels in the first two weeks of Alert Level 3. It had been planning for this quantity of parcels in 2023.

Supporting our commitment to be carbon neutral from 2030, the Wellington super depot will incorporate a range of environmentally sustainable design features and has also been designed to accommodate a large solar power installation once battery technology makes this a viable option for our operation.

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Port of Long Beach sees cargo increase

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Port of Long Beach sees cargo increase. Port of Long Beach
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Cargo shipments rose at the Port of Long Beach in May as the economic effects of COVID-19 started to subside.

Dockworkers and terminal operators moved 628,205 twenty-foot equivalent units of container cargo last month, a 9.5% increase from May 2019. Imports grew 7.6% to 312,590 TEUs, while exports climbed 11.6% to 134,556 TEUs. Empty containers headed back overseas jumped 11.4% to 181,060 TEUs.

The Port has moved 2,830,855 TEUs during the first five months of 2020, 5.9% down from the same period in 2019.

“Our strong numbers reflect the efforts of our Business Recovery Task Force, which is setting the path for efficient cargo movement and growth,” said Mario Cordero, Executive Director of the Port of Long Beach. “Our focus on operational excellence and world-class customer service will continue as we prioritize our industry-leading infrastructure development projects.”

“We aren’t out of the woods, but this is the gradual growth we have anticipated as the United States starts to rebound from the devastating economic impacts of COVID-19 and the trade war with China,” said Long Beach Harbor Commission President Bonnie Lowenthal.

As part of its recovery efforts, the Port of Long Beach has activated an internal Business Recovery Task Force that works with customers, industry partners, labor and government agencies to ensure terminal and supply chain operations continue without disruption, along with expediting shipments of crucial personal protective equipment.

May marked the first month in 2020 that cargo shipments rose at the nation’s second-busiest port, and followed seven consecutive months of declines attributed to the U.S.-China trade dispute and the COVID-19 epidemic.

Manufacturing in China continues to rebound from the effects of COVID-19, while demand for furniture, digital products and home improvement goods is increasing in the United States.

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