Warehousing: Foodgrains storage in India and elsewhere big business - by AK Ramdas

Warehousing of food grains, proper storage and upkeep, protection from bad weather and rodents, besides natural decay and weather effects, are becoming a big business opportunity for those who can manage the problems and handle upto a mammoth 120 million tonnes of grains in India.

This capacity need to cover our chemical fertiliser storage too, which is essential for the development and growth of the agricultural industry there and elsewhere.

Read more: Foodgrains storage in India - Moneylife

Britain: U.S. aluminum users slam LME's plan to solve warehousing crisis

A group of aluminum users, including MillerCoors LLC and other makers of drink cans, have said the London Metal Exchange's proposal to overhaul its controversial warehousing policy will "fall short" of solving the long wait times and inflated prices.

In a letter dated Sept. 9, the so-called "aluminum users group" called on the LME to implement even bigger changes, which they say will end long wait times, increase transparency for physical pricing and restore user confidence in the exchange.

Without that, there will be "more dysfunction, more manipulation and more harm", the letter from the group said. It also asked for a meeting with the LME.

The letter was in response to dramatic changes announced by the LME on July 1, aimed at soothing irate industrial users who say the LME's warehousing policy has led to record high physical premiums for aluminum and long wait times to take delivery.

While some of the group's suggestions may be hard to enforce, the seven-page letter will likely increase pressure on the LME and its new owner, Hong Kong Exchanges and Clearing , to deal with the problem as regulatory, legal and political scrutiny of the exchange intensifies.


Read more: U.S. aluminum users slam LME's plan to solve warehousing crisis | Reuters

International Trade: Major Developments In Global Warehousing Services

In many ways, warehousing facilities act as a barometer of broader economic trends. Third-party warehouses experienced some of the first signs of economic weakness as more clients stockpiled inventory. Likewise, warehousing companies benefited from a soft real estate market by negotiating cheaper leases and by purchasing property at low rates. As the industry faces another challenging year, experts indicate that five key trends should remain on the minds of company leaders.

1) Opening up more warehousing facilities to serve the same clients might not seem like an effective approach to "going green." However, the increasing urbanization of the worlds population and an industry still recovering from sudden spikes in energy costs has forced warehousing suppliers to rethink their locations. Staging product in multiple warehouses can reduce reliance on air freight and decrease shipping time. Dedicated warehouses that serve major cities can also respond more efficiently to regional demands.

2) As credit markets crumbled under the weight of a global recession, many third party logistics companies have resorted to selling off assets or merging with rivals to survive. Though industry analysts maintain that the sector should continue to thrive, successful companies must constantly evaluate their properties and their partnerships.

3) As all kinds of companies learn to cope with the rules of running a business in recessionary times, warehousing companies should also adjust to changing client demands. Warehousing facilities that once served as pick-and-pack terminals have been converted to long-term storage for clients that need to stockpile product. Likewise, many warehouse managers have changed floor plans and storage equipment systems to differentiate high-demand products from long-term storage items.

4) Shipping services have responded to customer demands for speed and security by integrating tracking services into their information technology infrastructure. Today, clients demand similar tools from warehousing providers, especially for products that must be kitted or assembled before delivery. Successful warehouse services already use database and management tools that can collaborate with shippers and with client ordering systems.

5) Interoperability and expansion are the key buzzwords right now, since facility managers must be ready to integrate their systems with clients and with other vendors. Overall, the trends affecting warehousing services mainly stem from end user demands for speed, efficiency, and environmental awareness.

EU-Digest