The Commodity Lens Concept
A Supply Chain & Trade initiative Enhancing Optimization & Supply Chain Transparency
Innovative Supply Chain Trade Enablers I Uzbekistan Escalating "Trade Wars" creates unique opportunities for alternative global value chains
A paradigm shift in global supply and value chains in response to Escalating US-China trade war is reshaping trade flows. Trade participants from all levels are pressured to rethink current complex and extensive supply chains. Disruptions connected to the trade war has raised the scale of "uncertainty" to new levels. Hedging the complex supply chain permutations in "lower cost" production hubs remains a high priority. The international trade have intensified efforts to develop sustainable manufacturing footprints that are able to deliver both tariff risk mitigation and supply chain efficiencies.
Innovative Supply Chain Trade Enablers I Uzbekistan Adding Value to the Commodity Trade of Landlocked Uzbekistan by optimized logistics delivery modes
Uzbekistan, endowed by the presence of oil and gas, gold agricultural scalability, in addition to the largest skilled regional demographic profile, presents business case basis justification on medium to long term growth potentials. This positive growth trajectory is further compounded by China's 21st-century Maritime Silk Road Initiative that spans across 152 Countries. The landlocked logistics of Uzbekistan presents opportunities in Containerization and Trucking for commercial exploitation. Global shifts in consumer trends requiring shorter lead time, transparent and cost efficient supply chains pose serious challenges to this transportation system. Containerized cargo movements supported by efficient trucking, also a traditional trade enabler, remains an untapped latent opportunity.
Innovative Supply Chain Trade Enablers I Uzbekistan Sanctions on Russia and Iran an Achilles heel to Uzbek Supply Chain
The "Achilles heel" in landlocked supply chains is free access to ocean freight. Although The UN Convention on laws of the Sea grants hinterland countries access and rights to the sea, indirect barriers of trade continue to persists. The far-reaching ways and means of sanction impositions on Russia and Iran has resulted into curtailed export volumes not only for the designated countries, but has regional negative consequences.
Additionally, Non-tariff barriers affecting cross-border imports of financial and transport services have negatively caused rising supply chain costs to Uzbekistan.
Diplomatic leverage is an option to leverage upon. The Uzbek Governments endeavours in facilitating multilateral efforts in the peace keeping efforts are distinguishingly notable. It is fully supported by the Governments of U.S., Pakistan and Iran. By combining supply chain technological innovations with containerized freight movements in Uzbekistan, the enhanced traceability and origination verification will enable means to overcome these barriers
Innovative Supply Chain Trade Enablers I Uzbekistan Shifting Focus in Trade Agreements – From Market Access to Value-Chain Barriers
Trade agreement negotiations are viewed through a "Value Added Lens", particularly on the application of preferential tariffs. The call for traceable through put shipping and related documents are pre conditions to provide the means in overcoming these value chain complexities. The processing and transportation of commodities and manufactured goods are performed as an interdependent chain, and any broken link will introduce discontinuity. Innovative supply chain technologies when applied to containerized cargo shipments will facilitate the digital issuance of shipping, origination, and customs related documents in a secure and seamless manner.
Innovative Supply Chain Trade Enablers I Uzbekistan Trade catalysts aligned to new economic reform policies creates synergies
Uzbekistan is in its second year of a wide-ranging market orientated reforms, with great determination to address the country’s most pressing challenges, job creation. Its demographics requires annually the creation of 500,000 jobs. Under President Shavkat Mirzaev, the government is making three fundamental shifts to the economy: from a command-and-control to a market-based economy; from a public sectordominated to a private sector-driven economy; and from being inward-looking and isolationist to outward looking and open. Amid growing external imbalances, these ongoing reforms may be enabled exponentially by means of adding tech leveraging containerization and trucking to its fragmented supply chains.
Krishnan Ramamurthi I Chief Innovation Officer