Key Logistics Trends in 2023

Taking into account the results of the case and guided by Articles 3 and 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities” and the “Rules for the consideration of cases of violation of antimonopoly legislation,” approved by Resolution of the Cabinet of Ministers No. 10.120 dated May 29, 1998, the Commission

DECIDED:

1. In connection with the monopolization of the industry by Azerbaijan Railways CJSC and the unreasonable restriction of the independence of business entities (limitation of competition by refusal to agree on the “mesplans” of Alliance Logistics LLC in November 2023), which violates paragraph 4 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” illegally acquired income in the amount of XXXXX is subject to payment to the state budget in accordance with paragraph 2 of part 1 of Article 17 of the same law.

2. The creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities in order to limit or eliminate competition by establishing an industry monopoly (limitation of competition in the transportation of uranium concentrate by ADY Container LLC in November-December 2023) is a violation of the requirements of paragraph 11 of Article 6 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” as a result of which, in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” XXXXXX income must be paid to the state budget as illegally obtained profit.

3. Creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities to limit or eliminate competition by establishing an industry monopoly (order No. 5-10275/2023 dated May 19, 2023, related to the provision of special benefits to LLC "ADY Konteyner" and led to a restriction of competition concerning prices for services provided at the Hovsan station) contradicts the requirements of paragraph 6 of Article 11 of the Law of the Azerbaijan Republic "On Antimonopoly Activities". Income received in violation of this law is subject to payment to the state budget as illegally obtained profit in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities.”

Based on the results of the consideration of the case against Azerbaijan Railways CJSC, to eliminate violations of paragraphs 4 and 11 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” the following instructions were issued:

- Payment of illegally obtained profits to the state budget, termination of refusals for subjective reasons when approving “mesplans” with orders from forwarders working in this area, with a clear indication of the reasons for refusal to approve “mesplans”;

- Payment of illegally obtained profits to the state budget, provision of benefits not to entities but to transported goods, and ensuring that benefits apply to all business entities while observing the principles of competition between freight forwarders operating in this area, as well as timely notification of all freight forwarders;

- Payment of illegally obtained profits in the amount of XXXXXX to the state budget, ensuring the formation of equal, transparent, and fair conditions for competition between forwarders operating in this area, as well as preventing bias in relations between the subsidiaries of Azerbaijan Railways CJSC and private forwarders.

On June 24, 2024, the State Service for Antimonopoly Control and Supervision over the Consumer Market imposed a financial sanction in the amount of 246,241 manats on Azerbaijan Railways CJSC for violating the Law of the Republic of Azerbaijan “On Antimonopoly Activities.” To eliminate instances of industry monopoly in the relevant market, a number of mandatory instructions were issued.

* As you can see, there is no court decision that would refute or exclude the above, and the indicated violations are not similar to previously adopted decisions. For these reasons, all measures provided for by law are taken in relation to Azerbaijan Railways CJSC to ensure the economic and legal interests of business entities. Instead of evading responsibility, ADY CJSC is recommended to bring its activities into compliance with legal requirements.

Transporting goods across borders involves global competition and multiple levels of requirements. Optimal solutions, staying up to date with strategies and rules, and using the latest technology are essential for international market success.

According to analysts and experts in this field, the most important points are the following:

Requirements and procedures in this area are constantly changing, and it is necessary to know about changes in international norms and rules firsthand in order to avoid delays in both production and sale of goods. Regular review of these rules will reduce their impact on exports to zero.

Don't forget that all documents must be in order, always! Echoing the previous principle, the paperwork required for global delivery can become an obstacle if you do not have up-to-date knowledge of international legal norms. Incorrect or incomplete documents tend to delay shipment and implementation, creating the risk of cancellation and damage to the company's reputation.

Using free trade zones while adhering to the standards and guidelines of international trade agreements, both in the production and distribution of goods, helps to achieve a regional advantage for your business.

In the international trade system, innovative technologies open up new opportunities, and this is an indisputable fact. Through the use of technology, some costs are reduced, which, in turn, stimulates the growth of commercial activity. Here we are talking about transport costs, logistics costs, costs for port services and customs clearance, for obtaining the necessary information, and transaction costs. A striking example is artificial intelligence and self-driving cars, which help reduce transportation costs.

Of course, the important point is not so much the choice of the market for offering products, as the adaptation to it. You will need to analyze it, make sure it fits your business, determine how easy it is to reach it and determine whether it is worth it.

International trade is a complex activity, so it is important for exporting companies to keep these best practices in mind as well as take advantage of reduced logistics costs to increase market share and succeed in new ones.

Proper packaging of goods, especially for fragile goods, is critical to successful delivery. Fragile goods come in many forms and require special equipment, handling, and handling conditions. These include glassware, laboratory equipment, musical equipment, jewelry, household items, china, valuable collectibles, or liquid goods. We present to your attention 6 essential tips for safely transporting this category of goods.

1. Packaging is selected according to the characteristics of the cargo. Filling voids in the tare with soft material helps secure the cargo during transport. This method helps reduce the impact of bumps and shocks.

2. When packing and loading fragile goods, regardless of the type of transport, consistency should be strictly followed: placing heavier loads lower reduces the risk of crushing or damaging smaller, more fragile goods.

3. Choosing the optimal type of transport that ensures timely and reliable delivery depends on the characteristics of the cargo.

4. Packing of personal items. No matter how big or small the items are, if they are fragile, they must be packed properly and efficiently. The use of materials such as bubble wrap, fabric, or cardboard will protect the goods, the cargo in the box will additionally be strapped, taped, etc. it is recommended to provide with

5. Marking of the parcel. The presence of clear labels such as "handle with care" or "fragile goods" is a reminder that this group of goods requires special handling.

6. Loading and unloading operations are carried out manually or using special equipment only by experienced workers.

However, even with the most careful organization of transportation, unexpected circumstances can arise that cause damage or loss of cargo. It is in such cases that there is a category of cargo insurance, which is especially important during the transportation of fragile goods. Insurance sums guarantee the client compensation for the value of the property.