July 2022 ARDEC Newsletter

JULY 2022 NEWSLETTER

Inflation, The Ocean Shipping Reform Act & the Shipping Industry

by Michelle Rock, International Business Development Advisor, AVP

mrock@arvest.com

Cell: (972) 896-9427 | SWIFT: ARVTUS44

If you joined us during the monthly TradeChat, or if you’re a part of the world of international trade, or if you’ve simply turned on the news recently, you will not be surprised to hear the shipping industry is facing challenges that result in increased costs that are trickling down to consumers. The Ocean Shipping Reform Act, signed into law June 16, is intended to crack down on international ocean shipping costs and ease supply chain backlogs that make it harder for U.S. farmers and exporters to get their goods to the global market, among other measures. But with some businesses reportedly paying 10 times the amount for carriages than they were this time last year, we need to take a few steps back and look at the whole picture, not just what’s happening, or not happening, at the ports. With weak accountability measures for steamships or carriage pricing, companies that are exporting or importing are going to need more than just decreased fees. How can exporters and importers possibly avoid increasing their prices if they are having to pay 10 times more for goods alone? To continue the discussion, tune into our TradeChat recording (starting at timestamp 4:00).

APPLY TODAY! Our 2022 Governor's Award for Excellence in Global Trade Gala Dinner and Ceremony will be held Wednesday, October 5, at the Governor's Mansion in Little Rock. Applications are open until August 5! If you are interested in applying for the Award, please contact Michelle Rock with any questions.

The Governor's Award event is an excellent opportunity for networking among the business and government leaders of Arkansas! With a sponsorship, your company will receive logo branding during the event, recognition on the ARDEC website, and tickets to the event, as well as media coverage. Please contact Ken Gaines with your questions.

Visit our Website to Apply or Sponsor

Each month we are featuring a different Member or Associate of the Arkansas District Export Council. Take a few minutes to get to know your colleagues in Arkansas business!

Michael Schrekenhofer, General Manager, Leather Brothers, Conway

We interviewed Michael a few weeks ago, as his company was the Rising Star Recipient of the 2021 Governor's Award for Excellence in Global Trade. Leather Brothers Inc manufactures high quality dog and cat products. In his own words:

" For the past 25 years I've worked in various positions within our family business and seen a lot changes and growth in the pet industry. One thing that hasn't changed though, is the love that people have for their pets. I believe that same love is put into each of our products and without our extraordinary team at Leather Brothers Inc., we would not be able to supply these products to the pet industry. Personally, I enjoy working with others and doing all I can to help those around me succeed. I believe teamwork, communication, and a positive work environment are essential keys to a healthy business.

What an honor it was to have received the Rising Star Award at the Governor’s Mansion! If it wasn’t for the Leather Brothers Team all working together we wouldn’t have thrived during the pandemic like we did. After receiving it, we sent out a press release to all of our raw material vendors and customers informing them of this award and its recognition. By doing this it bettered our relationship with our vendors we use for hardware and raw materials, but also helped push some export accounts we’ve struggled with selling in the past to give us a try, which has resulted in an increase in exports overall… [The Governor’s Award] with the help of the AR DEC team applying for the Governor’s Award was overall a great experience! I believe there are many more manufacturing businesses across our state that will learn and benefit from the Arkansas DEC organization and Governor’s Award in the coming years.”

CLICK HERE FOR APPLICATION INFO

UPCOMING EVENTS

Trade Chat with Chuck and Rudy, Wednesday, July 27, 1:30PM

Do you pay duties on your imports?

Do you use the components that you import in a product that you export?

Do you want a refund from US Customs?

If the answers to all the above are “yes” then you should know about Duty Drawback.

Come to Trade Chat July 27 at 1:30pm to hear more.

Mid-America Trade Summit

The Summit provides a unique opportunity to bring together top exporters, global trade leaders and trade assistance providers from across Mid-America.