Mohammed Esa, Agility GIL SVP of Global Business Development, recently joined executives from DB Schenker on a Gartner panel that looked at the impact of coronavirus on shippers and freight movements.
Four-year award includes demilitarisation, recycling and disposal of surplus assets
LONDON – March 16, 2020 – Agility Defense & Government Services (DGS) was awarded a four-year contract to collect, demilitarise and sell surplus military equipment and property overseen by the Defence Equipment Sales Authority (DESA) of the UK Ministry of Defence.
The contract includes disposal of surplus assets in operational and non-operational locations outside of the UK and has a potential throughput of $12.8 million over the four years.
DESA is the UK MoD arm authorised to sell surplus military equipment and inventory. DESA handles the disposal of all materiel that can generate revenue within the UK and overseas, including aircraft, aircraft spares, ships, boats, river craft and other marine vessels and spares, military and domestic vehicles, with the exception of nuclear, domestic waste and infrastructure.
Agility DGS had held the DESA Middle East overseas disposal contract since 2012 and was initially focused on the draw-down of the UK armed forces in Afghanistan. The latest award expands Agility DGS’s work to include any location globally where the UK MoD have a presence. The new scope of work begins May 1.
Under terms of the contract, the global overseas sales and disposals contract will be managed from Agility DGS’s Stoke-on-Trent facility in the UK, utilizing a customised Quantum ERP system to track inventory, manage the sales process and provide reporting.
Efficient disposal of the surplus inventory saves the MoD and UK taxpayers from the expense of shipping items back to the UK for disposal. Agility DGS will arrange for shipment of valuable items elsewhere if sales are not feasible in local markets.
“In this contract, we outlined the core processes we have developed and refined over seven years of operational delivery,” said Gareth Webberley, Vice President of Agility DGS Europe. “We proposed innovative solutions around the top-level activity management for sales, disposal, recycling and reporting, coupled with Agility’s global footprint and use of the web to broaden our customer reach.”
Supply chain executives brace for global slowdown, see threat to emerging markets
BAAR, Switzerland – February 10, 2020 – Supply chain industry executives anticipate a recession in 2020 amid concerns about downward pressure on global trade volumes, uncertain growth prospects, and ongoing friction between the U.S. and China.
Sixty-four percent of industry professionals surveyed for the 2020 Agility Emerging Markets Logistics Index say a recession is likely in the next 12 months. Only 12% of the 780 respondents say a recession is unlikely.
At the same time, most logistics executives say their companies will ride out any turbulence in trade relations between the world’s two largest economies. Seventy-percent of those with operations and investments in China say they will stay put and that their plans are unchanged despite the U.S.-China trade battle.
If they were to move production or sourcing from China, Vietnam and India were respondents’ top choices of places to relocate. They identified rising trade barriers as the factor most likely to hurt emerging markets growth.
The survey is part of the 2020 Agility Emerging Markets Logistics Index, the company’s 11th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index is a broad gauge of countries’ competitiveness based on their international and domestic logistics strengths and business fundamentals.
“The fears of a recession are not to be taken lightly, especially because of uncertainty about the impact of the coronavirus outbreak,” says Essa Al-Saleh, CEO of Agility Global Logistics. “A positive sign, however, is that a large number of emerging markets economies were able to weather an array of issues — political and social unrest, structural problems, even international sanctions for some — without losing much ground in the past year.”
The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. In 2020, the top 10 emerging markets are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Qatar, Mexico, Thailand and Turkey.
China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE, Malaysia and Saudi Arabia have the best business fundamentals.
China and India, atop the 2020 rankings based on their size and strength as international and domestic logistics markets, lag behind smaller rivals in business fundamentals, a category that ranks countries based on regulatory environment, credit and debt dynamics, contract enforcement, anti-corruption safeguards, price stability and market access. In that area, China ranks No. 8 and India is No. 18.
The strongest clusters of emerging markets are in the Arabian Gulf and Southeast Asia, thanks to business-friendly conditions and core strengths – the Gulf’s energy wealth and Southeast Asian manufacturing power – that draw logistics activity. In the Gulf, UAE (No. 3), Saudi Arabia (6), Qatar (7), Oman (14), Bahrain (15) and Kuwait (19) rank among the most business-friendly emerging markets. Among ASEAN countries, Indonesia (4), Malaysia (5), Thailand (9), and Vietnam (11) are strong.
Survey respondents see India as the market with greatest potential over China, their second choice. In rankings of best business conditions, several countries are making big moves: Egypt climbs 10 spots to #17; Ukraine jumps 10 spots to #27; Ghana drops 13 spots to #32; and Iran tumbles 12 spots to #38.
Forty-two percent of those surveyed say a prolonged trade standoff between the U.S. and China could benefit Southeast Asian countries, which offer manufacturing and sourcing alternatives to China. This is less, however, than 56% who said last year that Southeast Asia would benefit.
Egypt, despite a brief period of social unrest in 2019, showed significant gains across all indices. On the overall index, Egypt rose six spots to No. 20, while leaping 10 spots on the business fundamentals chart (17), six spots on the domestic opportunities index (13) and jumping five spots on the international opportunities index (23).
The top three factors that keep small businesses out of global trade are trade bureaucracy (17%), government/border instability (14%) and inability to compete with larger rivals (14%), supply chain professionals say in the survey.
Despite the belief a recession is likely, emerging markets still grew an estimated 7% in 2019 and are projected by the IMF to grow 4.4% in 2020. As for what is driving emerging markets growth, 23% say modernization of customs systems and processes, 18% cite increased internet penetration, 16% say modernization of logistics provider systems (WMS, TMS, etc.) and 15% mention increased adoption and modernization of online payment systems.
The top five “megacity” emerging markets logistics hubs are Shanghai, New Delhi, Sao Paulo, Jakarta and Mexico City. Megacities – urban centers with populations of 10 million or more – require vast logistics support to meet domestic needs and engage in trade.
E-commerce fulfillment is the top choice among logistics services expected to maintain or improve growth, well ahead of other services such as domestic last-mile delivery and international express parcel delivery.
The countries with the least potential as logistics markets in 2020 are Syria, Iran, Venezuela, Iraq and Libya, according to the survey.
Logistics company donation will support 12,000 refugees, mainly from Myanmar
DAVOS, Switzerland – Jan. 25, 2020 – Agility, a leading global logistics provider, and UNHCR, the UN Refugee Agency, announced a partnership that will strengthen the delivery of essential services to refugees in Malaysia, in particular for vulnerable communities living outside of the country’s capital.
The partnership, announced at the World Economic Forum’s annual meeting at Davos, will establish pilot programs in Johor and Penang, Malaysia. The programs will bring critically needed services to more than 12,000 refugees, including refugee card renewal, access to essential information related to protection, and to receive counseling on available services.
There are some 178,000 refugees registered with UNHCR in Malaysia. The new partnership with Agility will allow UNHCR to further extend support to more than 12,000 refugees, most of them Rohingyas from Myanmar. With local engagement and support, Agility and UNHCR will eliminate the need for vulnerable refugees to travel 300+ kilometers from their homes to Kuala Lumpur to have access to vital services, including refugee card renewal.
Agility CEO Tarek Sultan said: “UNHCR’s services are critical to giving refugees and families a safe place in times of turmoil. These services will help support a stronger sense of community for refugees who have been forced to flee their homes and villages. Agility has long supported UNHCR in the Middle East. We see a need to expand our partnership to help meet the needs of refugees in Malaysia.”
H.R.H. Prince Jaime de Bourbon de Parme, Senior Advisor for Private Sector Partnerships, UNHCR, said, “Agility’s contribution is an important demonstration of solidarity from the Kuwait private sector and one that will improve the safety and well-being of thousands of refugees in Malaysia, a country that has a long history of hosting displaced populations. The global size and scale of displacement requires us to go beyond the business as usual approach and I am confident that Agility’s gesture will inspire the private sector to upscale its support to refugees.”
Globally, Agility helps those affected by natural disasters and other crises by providing supply chain expertise and resources in collaboration with commercial partners, relief groups and international institutions. In the past, Agility has supported UNHCR’s work in the Middle East, by assisting more than 490 Syrian refugee families (close to 2,500 individuals) through fundraising and donations. To find out more about Agility’s sustainability activities, visit http://sustainability.agility.com.
Logistics industry survey finds executives worried despite new trade deal
DAVOS, Switzerland – Jan. 22, 2020 – Just days after the United States and China signed a deal that de-escalates months of back-and-forth trade retaliation, a survey of logistics executives shows that the supply chain industry continues to see a U.S.-China trade war as the top threat to global growth.
In a poll conducted this month by Agility and Transport Intelligence, logistics professionals were surveyed for their thoughts on the global economy and the leading threats to growth in 2020*. The results are part of the annual Agility Emerging Markets Logistics Index, a look at industry sentiment and a ranking of the world’s 50 leading emerging markets.
Twenty-eight percent of respondents see a US-China trade war as the biggest threat to global growth in 2020. US-Iranian tensions were next (19%), followed by a slowdown in the Chinese economy (17%).
What is the biggest threat to global economic growth in 2020?
Three of the leading threats involve China, which highlights its growing importance to the global economy and its ability to affect the fortunes of other countries.
The findings come just a week after Washington and Beijing signed a “phase one” trade deal in which they agreed to halt imposition of new tariffs and restore the flow of many goods and commodities that had been cut off by months of friction.
Only 8% of those surveyed see Brexit as the largest threat in 2020.
*The survey of 330 logistics and supply chain professionals was conducted by global research group Transport Intelligence as part of the 2020 Agility Emerging Markets Logistics Index, which will be released Feb. 10, 2020.
As emergencies around the world displaces populations, the work of international organizations like UNHCR are even more critical. In Malaysia, over 70,000 of the 163,000+ refugees in the country are Rohingya, fleeing persecution. Public-private partnerships are an essential part of improving global governance, and this partnership between UNHCR and Agility creates opportunities for both organizations to collaborate and help solve many difficult challenges faced by refugees in Malaysia.
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