GORI WINE & SPIRITS LOGISTICS NEWS AND INSIGHTS
Welcome to the first issue of our bi-monthly Gori Wine & Spirits Newsletter. Each issue of the newsletter will include wine & spirits industry insights, news, updates, events and more. Stay tuned!
Gori Wine & Spirits Logistics Team
Updates from Gori Office
Did you know you can schedule and tailor your own reports on Track & Trace? by using the "Customer Schedules" option, you can select the data that you'd like to see in your report, as well as, choose the date and time for the report to be issued and sent directly to the recipients you set.
Our LCL schedule gives you a quick and easy way to explore all LCL departures and find the sailings that best suits your needs.
Wine & Spirits Market Updates
Lower Quantity & Better Quality: The new trend in alcohol consumption in the upcoming years
The global wine industry approached 2018 with smaller inventories compared to 2017, with wine available for consumption at it’s lowest point in decades (nearly 8% of total global wine consumption lower).
The wine market is expected to see the biggest growth with an additional 37.8 million cases consumed worldwide. In terms of relative growth, the United States, Russia and Brazil are expected to be the largest-growing markets for still and sparkling wine between 2017 and 2022.
When it comes to the spirits market, it’s expected to grow overall in volume by 0.2% (36.5 million cases) within the next five years with potential retail value at £282bn.
Whisky is leading the way, followed by gin and agave-based spirits such as tequila. Vodka is expected to fall in terms of consumption due to the slowdown in domestic consumption.
Following the down fall in Beer retail value to £334bn period between 2012 and 2017. The global beer market is expected to grow again in 2018. Germany is expected to lead the growth for low-alcohol beer, while Mexico, Vietnam and Brazil are forecast to increase the most for beer. Between 2019 and 2022, volume of consumed beer will continue its slow decline, mainly due to the decline in beer domestic consumption in China, the US and Russia over the past years. However, Turnover and values, will continue to grow despite the reduction in volumes of beer consumed leaving the Global Beer market stable by 2022.
The key market for wine and spirits (Whiskey, Vodka, Tequila, Cognac, Mezcal and Armagnac) will still be the United States. Great Britain for Gin, France will lead Rum consumption and Beer will continue to grow in Mexico, Brazil and Vietnam, while Germany will boom in low alcohol beer and Romania will grow in cider. Japan is also expected to drive the consumption growth of Mixed Drinks.
*This article is based on the IWSR 2018-2022 Forecast: Volume and Value Data report.
Latest Industry News
Incoterms 2020: What’s changing?
Incoterms are drafted in the International Chamber of Commerce (ICC) as the body since 1930. Every first year of each decade, the ICC revises the Incoterms Rules to strengthen some identified transactional bottlenecks and to achieve a seamless trade between member nations.
The ICC constituted a drafting committee to evaluate and improve the global trade rules known as ‘Incoterms 2020’. The drafting committee of Incoterms 2020 is particularly interested in harmonizing conflicting commercial terms and revising key areas in the current Incoterms 2010 rules. This will help to align the rules with both international and local regulations, transportation and commercial practices.
Introduction of a new Incoterm: CNI
CNI (Cost and insurance) will allow the seller/exporter to handle the arrangement for export customs clearance, and the buyer will have to bear the risk of transportation. CNI will help bridge the gap between FCA and CFR/CIF.
Removal or modification of EXW and DDP incoterms
The DDP Incoterm and the EXW Incoterm are often considered to be more applicable to domestic trade and they appear to go against the European Union’s new customs code. Since the responsibility of the exporters and importers takes place once the clearance of export and import have been carried out. With the possible removal of EXW in Incoterms 2020, the rules are expected to greatly unify global customs compliance.
The ICC is looking into creating 2 new incoterms instead of completely eliminating DDP: DTP and DPP
DTP (Delivered at Terminal Paid): Seller is responsible for all transport-related costs including customs duties when goods are delivered to a terminal (be it port, airport, transport center, etc) at destination.
DPP (Delivered at Place Paid): Seller is responsible for all transport-related costs including customs duties when goods are delivered to any other places that’s not a transport terminal. E.g., buyer’s address.
Amendment of the FOB and CIF
FOB and CIF are two very old Incoterms, most of the changes made in the earlier versions of Incoterm has not been transmitted or implemented adequately. Therefore, the following changes are anticipated under the FOB, CIP and CIF terms:
- Insurance obligations between the seller and buyer in addition to the insurable interests under CIP and CIF terms.
- Recommendable penalties for manipulations of supplier under the CIF terms.
- Critical evaluation and identification of hidden supplier profit and the addition of Destination Handling Charges (DTHC) in the CIF shipment quotations.
In the Incoterms 2020 version, it is possible that FOB and CIF can be used again for container shipping.
Expansion of FCA
FCA is the most used Incoterm (about 40% of the international trade operations are carried out with this Incoterm) because of its versatility and flexibility with delivery location that are lacking in other Incoterms rules. The Committee is considering the possibility of creating two Incoterms FCA; one for terrestrial (land) delivery and another for maritime (sea) delivery.
In addition to the creation and elimination of some Incoterms, the ICC is analyzing other issues to include in the new version of the Incoterms 2020:
- Regulations on transportation insurance
- The relationship between the Incoterms and the International Sale Contract
Creation of an Incoterm to enhance security threats and cyber attacks
In the past years, the cross-border trade has been facing a lot of cyber-attacks and threats involving financial and sensitive data theft. Therefore, the ICC will work with cyber-security companies and experts that will priorities potential security threats and vulnerabilities of participants, stakeholders and agents in the international trade.
China and Australia are part of the drafting committee for the first time
The ICC consist mainly of Europeans but for the first time, the drafting of Incoterms includes representatives from China and Australia. Together with France, UK, Germany, Turkey, and the US, they’re responsible for revising draft after draft of the Incoterms 2020.
Incoterms 2020 are expected to be more practical, simplified and would assist in reducing grey areas and misinterpretations. The new Incoterms 2020 would take effect on January 1, 2020.
Gambero Rosso World Tour
Gori proudly announces being the Logistic sponsor of Gambero Rosso World Tour for the 8th year! Gamberro Rosso World Tour is the most prestigious cycle of events dedicated to the excellence of Italian wine in the world. Check out the Gambero Rosso events for 2018/2019.