Reducing Risk in Global Transport: 7 Best Practices for Sensitive Cargo

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3pls, Air cargo, Global Logistics, Global Trade Daily

Reducing Risk in Global Transport: 7 Best Practices for Sensitive Cargo

April 18th, 2025 Oscar Collins Leave a comment

The world of global transport requires speed and safety. Transporting sensitive cargo like pharmaceuticals, electronics and other valuable materials can expose several challenges, from regulations to potential hazards.

In order to maintain onboard security and customer expectations, it’s important to exercise the practices meant to reduce the risk of these logistics.

1. Pre-Transport Planning

Ensuring that the supply chain remains untouched begins even before the sensitive cargo is shipped off land. Logistics professionals must adopt pre-transport planning practices to figure out what can minimize accidents mid-travel.

It starts with the risk assessment. For instance, dual-use goods are both classified for civilian use and military applications. However, the companies behind them may face severe legal consequences like fines should there be gaps in access and it fall into the wrong hands. Some may even go as far as being stripped of their export privileges.

Shipping companies handling those kinds of products should apply proper regulations and privacy when moving them. Keep an eye out for possible ways thieves may try to infiltrate the transportation unit and increase security.

Route optimization is also a key part of pre-transport planning. Route optimization lowers the distance traveled by 10% and fuel consumption by 11%. Companies can also avoid more dangerous paths in the long run.

2. Proper Packaging Techniques

Global transport is more than just moving goods from place to place. Many are accustomed to applying protective packaging to these different products to ensure they arrive in optimal condition. It’s especially important for sensitive cargo, which may be prone to damage or failure.

Lithium technology is becoming a more common commodity that is utilized for portable electronics, large appliances, electric vehicles and so much more. The rechargeable batteries may malfunction and cause a fire while in transit. Thus, it’s best to seek specialized packaging, like aluminum casing with fireproof inserts, to contain such a risk.

Inserts also help with keeping aesthetic items in pristine condition. For instance, painted and polished auto parts can scrape against one another. Adding a divider between them can minimize contact and preserve their appearance.

Packaging should include proper labeling and documentation. Employees should be aware of what sensitive freight is grouped together and where on the ship they are placed. This practice is especially important if a unit is accommodating multiple kinds of goods.

3. Transportation Mode Selection

Reducing risks with sensitive cargo can also come with vehicle selection and their impacts. Trucks and other automobiles are ideal for short-term travel, and rail is also understandable. However, the demands of global transportation would mean choosing between ocean and air travel.

Some hazardous materials may not do well on cargo planes due to the air pressure when flying up. Meanwhile, other options like live animals and perishable freight are not ideal for cargo ships due to the long duration of their traveling. Fleet companies must be meticulous in seeking what fits for different situations.

Aside from the unit of transportation, there’s also the carrier type that the items will get into. For example, classic vehicles are better for enclosed transport carriers rather than open ones for extra protection. Depending on the nature of the product, they may fare better with the former rather than the latter as well.

Capacity is also another aspect to look into. Understanding the needs of carriers and the capacity of different transportation modes can answer the question of what the safest and most efficient option is. It also helps companies mitigate the higher costs of global travel.

4. Technology for Real-Time Monitoring

Technological advancements have benefited the transportation units used in global shipping. Several products can assist with real-time monitoring and showcase problems should they arise. For instance, GPS provides stakeholders with the locations of their goods.

Aside from ensuring supply chain visibility, the GPS also acts as a deterrent to infiltrators who want to steal the high-value items onboard. Even if they were to compromise the transportation unit, the tracking devices would still display where they are.

There are also temperature data loggers. Sensitive cargo like seafood products may perish if temperatures are disrupted. The loggers can absorb data on temperature variability in seafood processing and serve as information for time and temperature storage while in transit.

Maintaining ample temperatures and keeping humidity at bay is key to ensuring these items stay fresh until they get to their destination. Should food safety regulations be violated, businesses may build a bad reputation for seafood suppliers.

5. Employee Awareness Training

Fleet owners must exercise employee awareness training for the future. Up to 85% of maritime accidents in the shipping industry can be attributed to some form of human error. While it is preventable, it’s important to educate workers from the get-go.

Start with having training programs on how to handle the items. Having a proper routine for loading the products, checking product temperature, inspecting their condition and allowing proper air flow should be common practice.

These steps are especially important for sensitive cargo, as they have a higher value and increased risk compared to other products. Give responsibility to those who have paid attention to the training and understand what it takes to keep the items safe and sound.

People at a managerial level should also manage their teams well. If anything has changed with the standard operating procedures since the initial onboarding program, update members. Dedicate time toward this orientation to refresh their memory and keep operations intact.

6. Insurance and Risk Mitigation

The next step toward reducing risk is having insurance for sensitive freight. The global cargo insurance market is estimated to reach $105,975.1 million by 2032, growing at a healthy CAGR of 4.1%. Having this kind of financial protection when things go south on board can minimize the monetary risks associated with the products.

There are different kinds of freight insurance, with all-risk insurance the most all-encompassing one. It would protect both the cargo owners and employees along with the cargo itself. Check with providers regarding the details and see what fits with company operations.

7. Post-Transport Analysis

As sensitive cargo arrives from Point A to Point B, it’s imperative to unload these items with care. Run an inventory check to ensure everything has arrived safely without any damaged or missing units. If anything is missing, notify management immediately.

Request feedback from the recipients of the products. Have a questionnaire prepared regarding the conditions of the cargo and their satisfaction. The insight can be utilized for future process improvements.

Protect Sensitive Cargo, Lower Risk

Understanding the risks of moving sensitive cargo empowers logistics professionals and fleet owners to take proactive measures. The right routines will ensure the shipments arrive on time and in working condition, translating into better business reputation and customer satisfaction.

Global Trade Daily, Technology, Warehousing

What Kind of Security Team Is Best for Warehouses?

November 27th, 2024 Oscar Collins Leave a comment

Warehouses hold massive amounts of inventory, making them prime targets for theft, damage and even insider breaches. Selecting the right security team is about having an on-site presence and creating a tailored solution that aligns with the specific risks of the facility, the value of the goods stored and the scale of the operations.

Understanding Warehouse Security Needs

Warehouses are vital in the logistics network, housing high-value inventory and sensitive data related to supply chain operations. Without adequate security, these assets are vulnerable to a range of risks, from theft and vandalism to unauthorized access and cyber-related breaches.

Warehouses store goods in large volumes, making them attractive targets for crime and internal theft. Freight theft cost retailers and cargo companies over $44 million in the second quarter of 2023.

Additionally, warehouses are busy environments where employees, contractors and drivers frequently enter and exit, creating multiple access points that can lead to security lapses if unprotected. A safe and secure workplace prevents costly disruptions and protects personnel.

Assessing Risk Profiles

A thorough risk assessment should be the first step. Not all warehouses face the same challenges, so understanding the facility’s specific risk profile is crucial. Managers should think about their location — places in high-crime areas will need more robust security measures. The type of inventory stored is another important factor. In 2023, electronics accounted for 22% of stolen goods, resulting in a loss of over $500,000. High-value items such as electronics or pharmaceuticals require tighter security than bulk goods or nonperishable items.

Operating hours and facility size are also relevant considerations. A warehouse operating 24/7 faces unique risks compared to one with fixed hours. Larger facilities with complex layouts need broader coverage, which may influence the choice of security personnel and technology. Defining risk profiles lays the foundation for a security solution that aligns with specific needs.

Selecting Guard Types and Specializations

Not all security personnel bring the same skills, and the demands of a warehouse environment require particular expertise. On-site security guards with patrol vehicles can enhance security coverage in expansive warehouses or industrial parks. Patrol vehicles allow guards to respond rapidly to incidents across large areas, making them particularly effective for high-traffic facilities with complex layouts.

Unlike roving patrol visits — which typically involve a quick 15-minute overview of the property before the guard departs — on-site guards in vehicles offer continuous oversight, ensuring faster response times. Visible vehicle patrols also act as a strong deterrent for intruders, providing extra security that complements other measures like access control and video surveillance.

Access control officers are critical for facilities with valuable or sensitive inventory. They manage entry points and ensure only authorized personnel access restricted areas. Armed guards may be more appropriate if the risk profile suggests a higher threat level. Armed personnel provide a stronger deterrent but are generally reserved for high-risk sites. In other cases, unarmed guards may be a more appropriate and cost-effective option.

In specialized environments — such as those handling hazardous materials — guards with specific training will be needed. Security personnel trained in hazmat procedures can act quickly in case of an emergency, minimizing risks and ensuring regulatory compliance.

Leveraging Technology for Effective Security

Today’s security measures are incomplete without technology. Cameras, motion sensors and alarms provide crucial coverage, but the real value comes when a skilled team monitors these systems. CCTV cameras alone won’t protect warehouses — a security team is needed to intercept footage and respond quickly.

Alarm systems and motion sensors provide automated alerts, allowing guards to react immediately to unauthorized access or potential breaches. Additionally, access control systems using biometrics or smart cards can add an extra layer of security, particularly for areas with restricted access. These technologies don’t replace a security team but work in tandem to provide a more robust, responsive setup.

On-Site vs. Remote Monitoring Teams

Remote monitoring may be sufficient for some warehouses. They allow teams to review live feeds and respond to incidents via alarms or by dispatching on-site personnel when needed. This option works well for lower-risk facilities or those with smaller budgets. However, high-value warehouses or those in remote locations typically benefit from on-site guards who can respond instantly.

A hybrid approach — combining on-site guards with a remote team — can provide comprehensive coverage without excessive costs. This arrangement allows real-time response on the ground, while monitoring adds extra support and oversight.

Specialized Security Needs

Warehouses face unique risks standard commercial facilities don’t. Regular loading and unloading activities, third-party driver interactions and fluctuating stock levels increase exposure to potential security breaches. For these reasons, security teams should understand logistical processes.

Loading bays are particularly vulnerable during busy periods, so consider guards trained to monitor these high-risk zones. Similarly, vehicle inspections ensure no unauthorized goods enter or leave the premises. Guards with logistics experience can proactively spot irregularities, adding a valuable layer of security.

Prioritizing Training and Experience

Selecting security guards with experience in logistics means they’ll already be familiar with supply chain vulnerabilities and warehouse protocols. Trained personnel work seamlessly with staff, minimizing disruptions to daily operations while enhancing overall security.

Their expertise allows them to handle potential threats professionally, whether managing a breach or working alongside employees in day-to-day activities.

Emphasizing Communication and Quick Response

Communication skills are an often overlooked but critical component of a strong security team. Security is about more than just spotting risks — it’s about handling incidents efficiently and with minimal impact on operations.

Guards with strong communication abilities manage incidents with poise, ensuring smooth interactions with employees, visitors and authorities. Quick, calm responses help contain issues, keeping the facility safe and the operation running smoothly.

Integrating Cybersecurity Awareness

Physical and cybersecurity often intersect in modern logistics. There was a 72% increase in cyberattacks from 2021 to 2023, with over 300 million victims. Security teams should work closely with IT to monitor for physical breaches that could compromise network security.

An unlocked door or unauthorized access to a server room could be the first step toward a cyberattack. Involving security teams in basic cybersecurity awareness provides a well-rounded protection plan for warehouses.

Choosing the Right Security Team

Choosing the right security team requires a customized approach that aligns with a warehouse’s risk profile, logistical challenges and operational needs. A tailored solution will offer facilities the comprehensive protection they need, from specialized guards and integrated technology to teams skilled in communication and cyber-awareness. The right security setup can protect assets effectively and create a secure environment for successful operations.

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3pls, Global Logistics, Global Trade Daily

What California’s Complex Wine Supply Chain Can Teach Industry Professionals

November 7th, 2024 Oscar Collins Leave a comment

What California’s Complex Wine Supply Chain Can Teach Industry Professionals

Wine producers and retailers have to handle the deceptively complex nature of their industry’s supply chain. It has a significant number of moving parts, and each participant has to fulfill their role without mistake to ensure a smooth, untroubled operation. So, how do they make it work?

Here’s a guide to this niche supply chain and what it can teach industry professionals.

Tailoring the Climate Needs

California’s wine harvest season occurs in mid-summer to mid-autumn, depending on the location and type of grape. Regardless, grape growers and wine producers must consider the climate.

Producing wine grapes can be complicated because they need warm temperatures to grow. Weather conditions can disrupt the process if they get too hot or cold during the growing season.

Transporting the wine requires temperatures around 50 degrees Fahrenheit to preserve quality and prevent spoilage. With this factor in mind, logistics companies use climate-controlled refrigeration solutions when shipping wine. The conditions may vary depending on the type, so industry professionals must be careful and cater to the specific beverage.

Tackling the Effects of Global Warming

Higher surface temperatures have benefited the California wine industry by improving quality. With warmer weather, wine grapes grow faster and have better flavors. However, the effects of global warming will eventually harm the state’s wine industry.

A 2021 OENO One study said the industry would soon reach a tipping point due to loss of color, anthocyanins and other critical components. California — especially the southern areas — also risks running out of water in the next few decades. How can wineries continue their operations without risking downtime

The supply chain must optimize its water consumption and salvage rain from storms. For example, wineries could implement drip irrigation and stormwater harvesting systems to reduce reliance on municipal supplies. Then, they’re more likely to comply with California law during droughts.

Embracing the Renewable Energy Transition

With a changing planet, the wine industry in California and other states must act to become more sustainable. One way to reduce the wine supply chain’s carbon footprint is to embrace the transition to renewable energy.

When using solar and wind power, wine producers can protect vineyards from harmful greenhouse gas (GHG) emissions and bolster the quality of their grapes. Some California wineries have already found ways to make their mark with renewables.

In the heart of wine country, Domaine Carneros has implemented microgrids for energy when the power goes out. The Napa winery has increased self-sufficiency by going off the grid and taking advantage of natural resources. While the microgrid is new, Domaine Carneros has had solar panels for over two decades. Northern California is also excellent for wind turbines, considering the powerful gusts in the Altamont Pass and other areas.

Migrating to Electric Trucks

California has been among the most popular states for electric vehicles (EVs). Tesla, Rivian and others have called the area home for decades, and the state has pushed the EV transition for passenger and commercial vehicles.

In January 2024, a new law mandated hydrogen or battery power for all new trucks. Therefore, the wine industry must be cognizant in future shipping and logistics planning. EVs benefit California wine transportation because they emit no GHGs and support better air quality.

Some wineries have encouraged electric cars at their locations by implementing charging stations. While these technologies can be expensive upfront, they’re integral for long-term sustainability at wineries. They help the supply chain’s carbon footprint and improve human health by preventing the staff from breathing in toxic fumes.

Cultivating Wine Experiences

When clients arrive in California’s wine country, they desire more than the beverages. These adventurous customers want holistic experiences, meaning wineries and farms must cultivate activities in their visitor packages.

Tourists can sip wine during the day while visiting the nearby mountains or taking a train to a nearby destination. Here are some of the ways California wineries have embraced expanded encounters:

Anderson Valley: In Mendocino County, Anderson Valley visitors head to places like Husch Vineyards. This establishment features a centuries-old pony barn and lets tourists enjoy nature through their garden atmosphere.

Sonoma County: Sonoma is among California’s most famous wine destinations. At Ram’s Gate Winery, customers can enjoy a five-course seasonal wine and food experience. They also include small bite offerings and caviar tastings.

Napa Valley: Napa Valley’s proximity to Mount St. Helena makes it popular with tourists worldwide. Nearby, Calistoga has wineries like Chateau Montelena, which offers a 19th-century mansion and peaceful lake views.

Adding Food to the Fold

While experiences are integral to the California wine industry, local businesses also recognize the importance of food. When clients drink wine, they want the best foods to pair with their beverages. Due to this demand, it’s more common to see special menus and festivities at California wineries.

Experts say sales have slowed by over 10% for many vineyards, leading to fundamental menu changes. Some restaurants have moved away from traditional wine offerings in favor of other foods.

Osito — a San Francisco restaurant in the Mission District — recently replaced the wine-tasting menu with Texas-style barbecue. These changes demonstrate restaurants are becoming more aware of modern trends and adjusting their supply chain accordingly.

Introducing Artificial Intelligence

Artificial intelligence (AI) is critical to health care, finance and other industries. Experts say its market size will increase to $826 billion by 2030 with a CAGR of 28.4%.

While AI isn’t synonymous with alcoholic beverages, it has a place in California’s wine industry by ensuring quality regardless of the type. The advantages of AI start with agriculture, considering this technology monitors soil temperature and other critical factors.

With AI, grape producers can remotely monitor their crops and reduce the strain on laborers. Hiring and turnover can be costly, so automation eases California wine companies’ supply chain woes.

The industry can also deploy these advanced technologies through the Internet of Things (IoT). With IoT sensors, harvesting and fermentation become more manageable. Other industries can learn from the wine industry’s willingness to adopt AI.

Learning From the Leadership in Wine Country

California wine is available worldwide, though the supply chain is more complex than the average person assumes. Meticulous work is necessary for grape production, wine transportation and sustainable energy consumption. The state’s evolving wine industry can teach other sectors how to adapt amidst a changing climate and economic landscape.

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Global Logistics, Global Trade Daily

4 Proven Methods for Upholding Accountability in the Supply Chain

September 25th, 2024 Oscar Collins Leave a comment

Supply chain accountability is vital to meeting ESG goals in logistics. Fortunately, logistics service providers, port terminal operators, intermodal marketing companies and non-vessel operating common carriers have access to more efficient technologies to stay ahead of the game.

Revamping organizations internally can be complicated. Talk is cheap, so discerning logistics interests have employed these four methods to keep partners honest and hold erring ones accountable.

1. Relationship Management

Accountability happens when each piece of the supply chain knows its responsibilities and wholeheartedly accepts them. Take eco-friendly objectives — only 75% of industry players have poured resources into pursuing sustainability-related goals based on ESG criteria. The other 25% logistics companies haven’t done anything yet, suggesting they have other priorities. The disconnect can lead to organizational culture clashes.

All enterprises can inadvertently sabotage external partners in pursuit of their interests. Nurturing positive relationships with supply chain partners allows all parties involved to familiarize themselves with each other’s unique business goals and find mutually beneficial ways to work together. Finding common ground on critical areas is the key to nailing ESG targets consistently.

Logistics partners are less likely to behave to the detriment of one another when everybody is on the same page. Betrayal of trust can happen accidentally when one party doesn’t fully understand their obligations and the other’s expectations of them.

Both camps must discuss the risks they face and want to mitigate. Talking about the rewards each side wishes to gain from the business relationship must also be high on the agenda. Putting all cards on the table enables all parties to work collaboratively instead of competitively.

Verbal agreements are flimsy. Written legal contracts add more teeth to carrot-and-stick approaches by assigning responsibilities and spelling out consequences when a party falls short of expectations. Supply chain partners are more likely to hold their end of the bargain when every point of discussion is in black and white.

Furthermore, open communication helps forge stronger long-term partnerships. Prompt notifications aid responsiveness. Relevant stakeholders must be aware of potential and ongoing setbacks to coordinate with one another and make necessary adjustments swiftly without compromising ESG goals.

2. Orchestration

Well-orchestrated operations help eliminate blind spots between partners, putting all parties in a position to fulfill their responsibilities. Real-time data sharing fuels orchestration in the supply chain. It breaks down silos and enables stakeholders to be in tune with one another, regardless of location and time zone.

Technological transformation and integration underpin seamless information flows. Enterprise resource planning systems, transportation orchestration platforms, IoT devices and AI-based advanced analytics software are must-use technologies.

Logistics companies and partners don’t have to use the same hardware and software vendors to align their processes. All parties can get by when their technologies are compatible and they no longer use legacy solutions that hinder integration at the system level. Interoperability is paramount — it ensures relevant stakeholders from both camps can access similar data from which they can glean insights, have a single version of the truth and automatically leave audit trails.

Modern supply chain solutions support ease of adaptability and scalability. Agile decision-makers from both camps require technologies that can grow as their enterprises grow and their business requirements change, like adopting vehicle-to-vehicle communication and other measures to curb carbon emissions, so supply chain operations can remain frictionless between partners.

3. Transparency

Accountability becomes less of a concern in the supply chain when all players operate in a trustless environment. In this environment, no party has to take another’s word when investigating problems or auditing because bountiful irrefutable evidence is readily available and no party can hide or tamper with critical information when needed.

Embrace the right technologies to eliminate visibility gaps, collect granular data, produce quality video recordings and improve traceability is vital in fostering supply chain transparency.

Examples include GNSS-powered solutions that can track the movement of shipments using signals from various satellite constellations like GPS. Telematics devices constantly monitor vehicle performance and quantify driver behaviors on the road.

In addition, dashcams on fleet semi-trucks continuously capture high-resolution videos of the surroundings from parking to destination while the engine is on, producing reliable footage that can back or invalidate anecdotal claims. Blockchain renders partner activities traceable and audits painless, for this distributed ledger is immutable and can be decentralized.

The growing number of sophisticated technologies on the market gives logistics companies abundant options to attain transparency at every turn. With the right set of hardware and software solutions, organizations can gain additional eyes and note-takers to encourage partners to police themselves to avoid mistakes and come clean when something goes wrong.

4. New Partner Evaluation

Proper partner selection can solve many supply chain problems. While exercising due diligence can be painstaking work, it’s worth the trouble.

Promoting higher ethical standards and creating a culture of collaboration based on mutual trust and accountability is a pipe dream without a mechanism for telling reliable and dubious vendors apart early on. Signing deals with unscrupulous characters is a costly mistake that can trigger PR crises, drive up long-term costs and reduce responsiveness.

A logistics company’s vendor management team can effectively vet prospects by scrutinizing each one’s operational performance based on relevant KPIs. For example, when seeking new trucking partners, candidates must demonstrate excellent delivery time, truck turning, average days late, freight bill accuracy and transportation cost figures.

Moreover, doing business with new partners is an opportunity to bring an organization a step closer toward sustainability. The ideal supply chain partner must be technologically competent and open to innovation. While no industry player can claim to have figured everything out, ESG laggards are dead weight to any logistics organization trying to make honest-to-goodness efforts to be part of the solution.

Nevertheless, the strongest partnerships don’t always stem from being on the same wavelength immediately. Lesser candidates that have more promising learning dimensions and are willing to innovate — such as switching to biomass-based fuels like renewable diesel and upgrading to zero-emission vehicles — to bolster their partners’ sustainability aspirations may outshine their more established counterparts that are set in their ways.

Uphold Accountability in the Supply Chain Without Trying

Even generally ethical partners may feel liable to deny culpability for their errors when they can get away with it. Although such a tendency is part of human nature, it’s unacceptable in business — especially when logistics players are spending untold amounts of money to live up to industry standards. Implement these methods to ensure all parties behave with integrity.

Global Logistics, Global Trade Daily

How Cargo Theft Unloads Problems on Global Supply Chains: A Closer Look

August 9th, 2024 Oscar Collins Leave a comment

Stealing has always created setbacks in the supply chain. While security measures have been developed to deter it, cargo theft is still rampant today. Some repercussions include a ruined reputation, diminished finances, low stocks and production, and increased planning and resources.

Logistics professionals must be well aware of how fleets are compromised and how to prevent theft from happening. Here are some vital things they should consider.

Reputation Concerns

Reputation is always a major concern for businesses. Cargo theft may initially not seem related, but it is intertwined with company image. When an external party steals a consumer’s package in transit, they won’t point at the thief. The perceived fault falls on the company’s inability to protect it before it arrives at its destination.

Most customers may be unaware of such a breach, which can lead to assumptions that the cargo company is responsible for stealing. There may also be concerns about the leak of personal information, as most packages feature those details to get to the right destination. Data privacy requires more recognition.

Global supply chain managers may brush this information off, but they should be wary of these blind spots. A Deloitte survey finds that global executives overestimate customers’ trust in their supply chain. For instance, executives gave themselves an average score of 80 on reliability, but their patron base only came up with a 65. Capability is another dimension they lacked, with professionals preaching 84 while consumers ranked it 75.

Cargo theft can contribute to this disparity in reputation. Once a company gets a bad name, it can bid farewell to its customer base. Many will likely avoid problematic delivery services. People may return but will likely look for more trustworthy brands with good security.

A negative rep can also trigger mistrust with partners. Global supply chains depend on one another. However, a drop in consumer confidence creates less incentive to partner up. They may also worry about tainting their name in the process.

Financial Impact

Cargo theft can also create financial problems. A bad reputation can result in fewer sales and deliveries, and slowed demand can create hiccups in the global supply chain. Some companies may not survive, resulting in company closures and an imbalance in the supply chain.

There are also direct losses in terms of stolen products. According to reports, 925 cargo theft incidents occurred during the first quarter of 2024 alone, averaging $281,757 per robbery. A total of $76 million was lost overall. As operations become more planned and elaborate, each incident may have a higher financial impact than before.

Expenses may also go to waste. Running a fleet vehicle is costly, but carrying and delivering cargo brings in profit to shoulder those numbers. Stolen freight eliminates the surplus and puts a company in the red.

Cargo theft removes operating profit for that specific trip. Multiple incidents happening to the same establishment within the same quarter can lead to bankruptcy.

Many people are employed in the shipping industry. It’s estimated that 105,220 agents are working in cargo. They are responsible for inventory management, route movement, packaging, driving and so much more. Companies must pay these employees by the hour.

Some companies refuse to pay carriers when freight is stolen. Others may seek compensation or cite negligence and close the case altogether. Insurance premiums are costly as cargo theft continues to be a threat.

Dwindling Supplies

Global supply chains provide plenty of goods. However, robberies can raise questions about whether the products will last. Meeting demand has always been a recurring issue for executives.

For instance, food and beverages can take time to cultivate, manufacture and package. Unfortunately, they are the top targets of criminal activity due to an inflated economy and demand from desperate consumers.

Cargo theft isn’t solely liable for delays within the global supply chain. For instance, the car industry faces a raw material shortage, with the deficit extending to 2025 and beyond. Overseas conflicts like trade wars and invasions have also halted production in automaking countries.

The added strain of losing products is difficult for producers to face. The blame falls on fleet managers who were unable to secure high-value items until they reached their destination.

Unsafe Routes

Determining the best delivery routes is a major consideration in preventing cargo theft. Speed and efficiency are the top priorities that most supply chain professionals focus on when planning how to transport their freight. However, priorities also include package security and driver safety.

For instance, certain South Freeway intersections in Dallas-Fort Worth were common areas for cargo theft in 2023. Executives must either take the risk of going through the passageway for quicker delivery or plan a longer route to avoid it. The latter would require extra resources.

Unsafe routes are even more of an issue on a global scale. Say there’s an ongoing rumor of robberies in a certain passageway at sea. Companies would have to determine whether to risk sending a cargo ship through or take a longer route.

Risk Analysis

Every professional should be vigilant in preventing breaches with their cargo transport. A risk analysis can help narrow down the chances of cargo theft. For example, a probability study finds most past incidents involved stealing from a vehicle, which accounts for 64.2% of accidents.

The study also found that truck theft accounted for 20.3%, while vehicle theft was 6.26%. Other incidents involve theft from the facility, trailer and container. Instill the strongest security measures in the areas with the highest level of probability.

Advanced Theft Mitigation

Cargo theft does not just target drivers. Some criminals launch cyberattacks to bypass authentication processes and access valuable freight. They may also use data to pose as reliable carriers, which can increase mistrust between point persons within the supply chain.

There are efforts to combat these issues. For instance, one company provides visibility software to pinpoint and mitigate freight shipping delays with AI. Alerts and other organizational tools can minimize room for error in security systems. The business secured $73 million in financing for research and development and customer acquisition.

Hold the Line on Supply Chains

Cargo theft is prevalent in the current landscape. Many global supply chains hold strong despite previous attempts, whether successful or not. Logistic professionals should persevere against such crimes and focus on delivering stellar service to consumers to strengthen their reputations and prevent loss.

Global Logistics, Global Trade Daily

Examining the Versatility of Intermodal Transportation in 2024 and Beyond

July 12th, 2024 Oscar Collins Leave a comment

Intermodal freight is the future of logistics. Momentum is on its side, poising it to evolve from alternative to standard in the coming years. This news doesn’t surprise the industry because it promises more efficiency and sustainability than traditional long-haul trucking loads. It also meaningfully cuts drayage to reduce costs and is reliable enough to minimize the risk of cargo damage and loss.

This freight transportation model isn’t without challenges limiting its potential. For example, it requires substantial capital to build the necessary infrastructure. Intermodal freight relies on the interconnectivity of distinct modes of transport and cranes to transport shipping containers between vehicles. Despite this, logistics interests are betting big on it because of one other, less-talked-about but significant advantage — versatility.

Intermodal Transportation’s Elegant Solutions to Logistical Pain Points

The primary beneficiaries of intermodal transportation are enterprises — especially those operating in retail, manufacturing, agriculture and construction — that move large shipment volumes over vast distances. Domestic shippers in large countries like the United States find immense value in it, and their international counterparts consider it an antidote to the complicated logistical challenges they face in business.

Considering the versatile nature of intermodal freight, it’s fathomable that more shippers would view it as a practical means of carrying their goods for these reasons.

1. Meeting Rising Demand for Goods Quickly

Sector observers estimate the global intermodal transportation market will balloon from $55.3 billion in 2022 to $197.59 billion in 2032, with a compound annual growth rate of 15.2%. E-commerce is the primary catalyst for this rosy projection. When you factor in globalization and sustainability, intermodal freight stands out as the most desirable means of transportation for massive quantities of physical goods from and to anywhere in the world as soon as possible while minimizing greenhouse gas emissions.

Although freight vehicles have dissimilar capacities, containerization renders them interoperable. Planes, marine vessels, trucks and trains have unique strengths that complement and neutralize each other’s limitations. Harnessing intermodal transportation can speed up deliveries to alleviate lengthy lead times whose economic consequences ripple around society.

Take construction as an example. Black swan and geopolitical events have negatively impacted the sector’s supply chains for years, causing contractors to pay more and wait longer for supplies to complete projects.

Imported materials such as timber and steel take four or six times as long to arrive on the jobsite as they used to pre-pandemic. Construction delays can hurt bottom lines, increase idleness, drive up rents and property prices, and undercut homelessness solutions.

Intermodal freight opens a world of possibilities for circumventing global supply chain issues. The logistics industry needs as many alternative transportation methods as possible to move trillions worth of shipments across oceans and enormous landmasses amid various hazards.

2. Increasing Avenues of Cargo Movement

Intermodal freight transportation opens new possibilities for shipping any conceivable item when long-haul trucking is inaccessible in an area. It empowers shippers to book truckers keener on same-day journeys than multi-day hauls.

In the U.S., a single day is usually sufficient to transport a commodity from its point of origin to the nearest rail yard. The country has Class I railroads and short lines running more than 92,000 and 44,000 route miles, respectively, across 49 states and the District of Columbia, totaling about 136,000 route miles. With this extensive infrastructure, intermodal freight allows shippers nationwide to use trucks for pre- and post-haulage only.

3. Mitigating Trucker Shortages

The trucking industry has an impending driver crisis. Older truckers considerably outnumber their younger peers, potentially leaving many commercial freight carriers severely understaffed when they retire. For instance, 29% of American truck drivers are at least 55 years old, whereas only 8% are under 25.

Autonomous vehicles may or may not offset this imminent labor shortage. Moving more cargo by rail and less by road is the safer bet to prepare for this nightmarish logistics scenario.

Intermodal freight can help fleet owners keep employee turnover figures low and soften the blow of acute talent shortages. Long-haul trucking can be a taxing gig because of exhausting schedules. Concentrating on shorter trips can benefit truckers’ overall health and generate more revenue by covering less ground to move more goods in less time and shrinking deadhead miles. This business model can enable commercial freight carriers to offer competitive wages to attract talent.

4. Easing Truck Modernization Transition

Decreasing the need for long-haul trucking lessens fleet owners’ barriers to hitting sustainability targets. Incorporating rail into haulage makes it easier to upgrade to more compact, fuel-efficient vehicles, concentrate on the last leg of the cargo’s journey and reduce carbon footprints.

Rail has superior capacity and fuel efficiency among all freight solutions. It accounts for just 2% of transportation’s total greenhouse gas emissions. When used to move more shipments by weight, freight rail can help the sector’s dirtier segments decarbonize more quickly and move the needle in sustainability.

2024 Intermodal Transportation Trends to Watch Out For

These ongoing trends will shape intermodal freight’s future.

1. Growing Cross-Border Trade

Regional trade growth is outpacing global trade. Rival countries engage in a battle of attrition, imposing restrictions on one another and strategically embracing protectionism. As a result, more nations seek to do more business with friendly neighbors than adversarial partners oceans away. These phenomena are fueling the appetite for intermodal freight.

For instance, the United States-Mexico-Canada Agreement boosts the economic interdependence of member countries on one another. This newly minted trading bloc gives American farmers alternative markets to sell their products to and prevent themselves from becoming collateral damage in the U.S.-China trade war. Intermodal freight facilitates more cross-border trade within these North American nations.

2. Electric Freight Trains

Rail is becoming greener by the year with the advent of 100% battery-powered heavy-haul locomotives. Although a zero-emission freight train already reached the finish line, the sustainability race continues. It has only strengthened the resolve of more technology companies to explore novel ways to retire diesel-burning trains for a low-carbon future.

3. Greater Supply Chain Visibility

Various innovations ensure better intermodal shipment tracking. More brands are embracing GPS systems and telematics technologies to monitor rail cars more closely, attracting shippers that typically use trucks and diversifying their clientele as they decouple from waning commodities like coal. Cloud-based intermodal software is also gaining steam.

Intermodal Transportation — A Versatile Logistical Remedy

Improving synergy between various freight vehicles makes financial sense on many levels. While logistics professionals still need to work out the model’s kinks to improve service, its bright outlook means the transportation sector has faith in its long-term viability and success.

Global Logistics, Global Trade Daily

8 Game-Changing Moves for Logistics Companies Pursuing Growth in 2024

July 6th, 2024 Oscar Collins Leave a comment

Every year is a chance for growth, whether a logistics company is an established entity or a small business in the industry. No matter what stage they’re in, the most important thing is making the right decisions to propel them forward rather than backward.

It might seem like everybody already knows the road to success in 2024. In reality, there’s not a one-and-done solution for all services. Here are some positive moves to influence a business’s chances of making it big.

Enhance Transparency

Logistics companies depend significantly on their patrons, whether they focus on a B2B or B2C model. In 2022, about 60% of consumers think trustworthiness and transparency are the most significant traits of a business worldwide. Thus, establishments that want to thrive in this industry must seek ways to keep transparency.

For example, keep customers updated. Have a mailing list to share the latest pricing and shipping fees. Even weekly newsletters can affect how customers view the company and whether they will be loyal.

If a customer requests a shipment, let them know the status of their delivery. It’s reassuring for people to track where their parcel is, and it impresses them that a logistic business can provide real-time data.

Provide Employee Training

A logistics company only succeeds when its employees are well-trained and knowledgeable about the industry. After all, they are responsible for company processes like sales, marketing, and inventory handling. Businesses should focus on fostering their talents. Look at them as an investment in the company’s long-term success.

One underrated part of employee training is being able to handle different departments. More prominent companies will have dedicated people to their own niches. However, it’s good to have each person expand their range for the future.

Businesses can also offer workshops and one-on-one training sessions with the employees. The industry is always growing, and the workers may not be fully aware of it since they’re focused on work. Give them the knowledge to keep up with the competition.

Improve Warehousing

Warehousing is one of the most significant facets of logistics. As the company grows, more bulk items will require storage and packaging. To keep up with demand, it’s important to find ways to expand and be more efficient.

For example, an inventory tracking system can empower logistics managers to measure warehouse space and monitor the business’ stocks. This solution can be combined with security measures to keep valuables safe.

Running a warehouse entails multiple upkeep expenses. Try to see what upgrades may minimize expenditure. For example, fabric buildings are gaining momentum since they don’t have screws or nails, mitigating leaks, rust, and corrosion. On average, repair costs can be as low as $2 per square foot for fabric buildings, while replacement steel is up to $7 per square foot.

Invest in Better Transportation

Transportation has a big impact on logistics companies. To continue growing, businesses must improve their processes of delivering different transports. Having GPS trackers on the company vehicles can ensure everything is moving according to schedule. It also encourages drivers to be more productive.

Another investment that may change the game for logistic companies is self-driving vehicles. Truckers can drive for 12 hours every day but require rest to recuperate. Having autonomous trucks go to and from a destination at every hour of the day can make a big difference.

Granted, self-driving automobiles can be a costly investment. Medium to large-sized businesses can shoulder these potential upgrades. However, it’s best to assess the budget. Only revisit the idea if it seems feasible and growth is steady.

Implement Lead Generation Strategies

Logistics companies thrive on word of mouth, but relying on that alone can be dangerous. Explore different lead generation strategies to grow the customer base and uplift the business. Have a mix of traditional and digital marketing.

For traditional marketing, events can be greatly beneficial for networking. Host different trade shows or attend conferences and seminars related to logistics. Those discussions can help reel in many potential patrons.

In terms of digital marketing, SEO is imperative. There are about 8.5 billion Google search queries daily, with the average person performing three to four searches daily. Have a prominent presence through social media. Create a website to attract the searches related to logistics services.

Integrate Performance Analysis

Some companies make many decisions but fail to track them. That makes it hard to know what’s causing slowdowns or improvements. Instead of letting those efforts go to waste, consider adopting a performance management and analysis process.

Pick out KPI metrics to keep track of. For example, some logistics companies want to improve delivery performance and rates. Check the number of successful shipments and round up the numbers throughout a period. Compare it later to see whether the business is hitting its mark.

Another key metric to assess is the profit margin. Businesses need to maximize their earnings when making deliveries to have the funds to grow further. Anything below it can cause problems that are difficult to recover from.

Create a Strong Plan

If logistics companies lack a strong long-term plan, they should adopt one as soon as possible. Pursuing growth requires a clear timeline and an outline of how to achieve those objectives. Many establishments close their doors early because they fail to achieve this growth. In 2022, new businesses will have a one-year survival rate of 74.4%-78.6%, depending on the location.

Logistic services are highly survivable if they plan for the years ahead. Create different milestones to reach. Whether it has to do with increasing customer base or boosting delivery capabilities, set a goal to work toward at the end of this year and the ones to come.

The logistics company doesn’t have to shut down if things don’t follow through. Instead, assess the shortcomings and adapt the timeline for the future. Challenges are bound to arise, and professionals can only manage how they will react to such adversities.

Utilize Specialized Technology

Logistics companies should keep up with the times and invest in specialized technology. It’s 2024, and the age of digitization is more prominent than ever, especially with the rise of artificial intelligence. After all, AI can provide robust predictive algorithms and automate repetitive tasks, which saves energy and time for employees.

Many companies within the industry are already catching up. According to the U.S. Chamber of Commerce, about one in four small businesses utilize AI in their processes. Bigger services are likely making their usage the norm, so stay caught up.

Aside from AI, logistics companies can also take advantage of other hands-on technologies. For instance, robotics can easily take over packaging duties. Instead, professionals can direct the workforce towards other company endeavors, maximizing productivity.

Aiming and Adapting for Growth

Logistics professionals should be detail-oriented and analytical about different factors. Individual changes for each facet may seem subtle, but they all improve the business. Strive for these improvements to increase a company’s overall survival.

Global Logistics, Global Trade Daily

How Sustainable Manufacturing Practices Are Shaping Tomorrow’s Auto Industry

June 26th, 2024 Oscar Collins Leave a comment

Whether people travel for work or vacation, automobiles are integral to modern transportation needs. Commuters have driven anything from the Model T to the Corvette for over a century. Now, the automotive industry is at a critical inflection point regarding sustainability.

Manufacturers must be more conscious of the environment or risk regulatory intervention from governing bodies. Here’s a guide to sustainable auto manufacturing and the industry’s evolution.

What Sustainable Practices Are in the Auto Industry?

Automotive manufacturers have implemented environmentally friendly strategies to promote sustainability. Here are five practices automakers use to limit their liability.

1. Renewable Energy

Improving sustainability in the automotive industry begins with the power sources at production plants. Manufacturers can produce fuel-efficient cars and electric vehicles (EVs), but the environmental effects remain if the facilities rely on non-renewable resources.

Automakers have recently turned to solar and wind technology to generate power. Last year, Ford opened a solar power plant in Valencia, Spain, intending to produce 10 megawatts by 2024.

2. Modern Materials

Manufacturers used to build cars with steel to make them sturdy, but this approach made them heavier and less fuel-efficient. Modern machines use lighter materials to improve fuel economy while maintaining safety.

For instance, manufacturers have moved away from steel to favor aluminum. This lighter material lets cars consume less fuel and generate fewer emissions. Aluminum is also beneficial because it is more recyclable than steel.

3. Reduced Waste

The EPA said auto manufacturers reduced their waste production by 17% between 2005 and 2020. Recycling has been critical to limiting trash and creating a circular economy.

Modern manufacturers follow the latter’s principles to make their vehicles recyclable and reuse old parts. For example, Stellantis has an end-of-life recycling partnership with Gallo that repurposes steel and plastic from manufacturing.

4. Improved Fuel Economy

Fuel economy is vital for automakers because it determines how efficient their vehicles are once they’ve hit the road. EVs have become more popular, but gas-powered cars still compose 92% of the automobile market.

Improving the miles per gallon for vehicle lineups has been crucial to manufacturers as governing bodies implement stricter regulations. Modern cars have benefited from more efficient engines, improved transmissions and better aerodynamics.

5. Powerful Batteries

EVs could only last 63 to 94 miles before owners had to recharge the batteries, but evolving technology now gives the average electric car 270 miles of range.

Thanks to innovations like denser batteries, this increase has been vital for manufacturers to get consumers on board with their EV lineups. The Lucid Air has set the standard for EV batteries, with a 500-mile capacity on a single charge.

How Have Auto Manufacturers Evolved With Sustainability?

While automakers are at the forefront of sustainability innovations, their operations haven’t always been environmentally friendly. Here are five ways auto manufacturers have improved efficiency and reduced waste.

1. Production Efficiency

Production efficiency dates back to the Ford Motor Company and its assembly lines. Through the years, manufacturers have built on these ideals by streamlining and cutting waste wherever necessary.

Emphasizing efficiency in production lets them create more cars while reducing environmental impact. For instance, Toyota’s assembly lines utilize a just-in-time philosophy to minimize trash, trim costs and limit interruptions when building vehicles.

2. Leveraging Robotics

Robotics has long been a part of auto manufacturing. General Motors (GM) implemented a robotic arm on the assembly line and increased production speed by 67% by the early 1970s.

The last half-century has further demonstrated the ability of artificial intelligence (AI) and machine learning (ML). Modern automotive plants leverage robotics for welding and eliminating dangerous materials. This technology also makes the job safer for employees.

3. Laser Technology

Laser technology has been another critical advancement for assembly lines because it reduces waste and improves efficiency. Factory employees use lasers to increase precision on individual parts, thus saving time and ensuring structural integrity.

These gadgets reduce the need to touch the car part with a mechanical part and risk harming it. Automotive plants also use light detection and ranging technology to generate 3D models of their vehicles and make safety checks.

4. Crate Motors

Engines only last so long before they can no longer work. Old vehicles remain in garages, backyards and scrapyards because they can’t move anywhere else. How can people breathe life into classic cars and antique cars? Refurbishing with crate motors is an excellent start.

These engines upgrade old vehicles by letting them take advantage of new technology. For example, a collector could revamp an old Porsche by refitting it with an electric motor.

5. Blockchain

Thanks to blockchain technology, increasing supply chain visibility has become more manageable. The innovation enhances transparency by making materials more straightforward to trace, thus bringing more accountability and improved security to the industry.

While a relatively new technology, the blockchain will be integral to the automotive sector’s future. Experts say it will have a nearly 53% CAGR until 2032, reaching a $825 billion value.

What Challenges Do Automakers Face With Sustainability?

Ensuring sustainability brings long-term goals for automakers. However, these five challenges could prevent them from reaching critical benchmarks.

1. Upfront Costs

While investing in EVs and renewable energy is commendable, the price tag is a significant barrier. Manufacturers must invest a lot of capital to pay for solar panels at their plants and expensive batteries for their vehicles. These make cars more expensive and less attainable for consumers.

However, experts say the next few years will alleviate expenses. A Gartner report says electric cars will be cheaper to produce than ICE vehicles by 2027.

2. Intermittent Power

Solar and wind energy present opportunities to use renewables in automotive plants. However, manufacturers must consider the intermittency of these power sources. Cloudy or wind-free days make these technologies counterproductive to a manufacturer’s quota.

Research and development are necessary to make panels and turbines more efficient with energy storage. For instance, high concentrations make a solar panel more energy-dense and viable for large plants.

3. Sustainable Sourcing

Automakers rely on lithium, nickel and cobalt for EV batteries, and their sourcing could make electric cars less sustainable. Mining these metals raises environmental concerns because of their resource usage and CO2 emissions.

The International Energy Agency says EVs use nearly 200kg more minerals than ICE cars, thus depleting resources and harming the environment. Future mining should prioritize pollution reduction and less energy usage.

4. Supply Chain Management

An automaker is only as sustainable as its suppliers. They must be selective and ensure the companies they work with uphold strict environmental standards. Leveraging blockchain technology can be an excellent strategy to enforce sustainable practices.

Issues could arise by relying on businesses that disregard the environment. Manufacturers should audit their supply partners to ensure their vehicles maximize sustainability.

5. Privacy and Security

Connecting vehicles to grids and other cars enhances sustainability through better traffic and grid management. However, this technology opens the door to cyber theft and privacy breaches.

Automakers and EV charging stations store large amounts of data, so they must implement stringent practices to protect this information. The Identify Theft Resource Center says data breaches affected 353 million people, emphasizing the need for strong policies in the auto industry.

Enhancing Sustainability in the Auto Industry

The automotive industry relies on technological advances to increase efficiency and stay ahead. In recent years, manufacturers have prioritized lessening their environmental impact.

While artificial intelligence and machine learning have made building cars and tracking supplies more efficient, automakers must improve their sustainability with renewable energy and constant innovation.

Global Logistics, Global Trade Daily

A Closer Look at Life on a Cargo Ship: 7 Realities

June 12th, 2024 Oscar Collins Leave a comment

The water transportation industry rarely gets the spotlight. That said, delivering freight from country to country is hard work that deserves more recognition.

A great number of people contribute to a package’s journey and destination. Here’s a closer look at what to do to get and stay on board a cargo ship.

Applying to Become a Cargo Worker

There are many jobs in the sector, with seaman and material handler as the entry-level roles. It can take some time to climb the ranks and become a senior member of the crew or ship captain. However, some are content with taking on more niche roles such as ship cook or rigger.

Cargo ship jobs usually have fewer educational requirements, with some accepting high school graduates. However, maritime training and certification is key. U.S. companies and sole proprietors must obtain a license from the Federal Maritime Commission to qualify for ocean freight transportation.

Sending in an application does not guarantee landing a role. Logistic jobs may be in demand with the growth of e-commerce and globalization, but most enterprises look for people with experience handling inventory and shipping.

It’s also important to check on one’s health before pushing through with becoming a cargo worker. Unlike shipping roles on land, a crew member will have to face the sights and motions of the sea throughout their career.

Checking Compensation for the Crew

Compensation can vary from role to role. Experience and rank can also play a big part in the salary. According to the U.S. Bureau of Labor Statistics, water transportation workers had a median pay of $31.22 per hour or $64,930 annually in May 2023. Some shipping businesses offer a premium for overtime work.

Some people receive their pay weekly or monthly, depending on management. However, some crew members need compensation due to unfair employers and rogue manning agents. The International Transport Workers’ Federation recovered over $35 million in wages owed.

Cargo ship workers must be wary of their employers and any payment problems that may arise. Check the agency’s legitimacy by checking its registration and whether it is under an ITF agreement. A claim against brands that have breached those conditions will be easier to process and resolve.

Crew members can connect with the rest of their shipmates to address delays and collect their salaries. However, being wary of acquaintances who will take advantage of the situation and extort money is also essential.

Experiencing the Working Conditions

The sun and the sea are both unpredictable natural elements. Docking at the port and moving the freight onto the boat can already be a taxing experience. Depending on the size of the vessel and the number of crew members working together, the movement can take a while.

Some people may experience muscle soreness with a delayed onset afterward. These aches show up 24 to 72 hours after strenuous activities. However, staff can’t get rest right away, especially when the ship finally sails.

Material handlers need to recheck inventory to ensure nothing is missing. Engineers need to monitor and maintain the motor to keep the ship afloat. The captain and officers must navigate the waters and steer the freight to their destination.

As bigger ships need hands on deck 24/7, someone will always be working. The shift assigned to a worker will typically state their exact hours and when they can rest in their personal quarters.

Living on a Water Vessel

A cargo ship is quite far from a cruise ship, as it is more optimized for transporting different packages. Being in the middle of the ocean makes Wi-Fi connection quite difficult to come across. Even when an email does get out, the captain is in charge of reviewing correspondence.

While it lacks the amenities and entertainment required, most cargo ship workers can find plenty of solace in the endless sky and sea. Taking in the sights in between monitoring the mechanisms and freights can be relaxing.

Most cargo ship organizations provide meals for the crew at specific times of day. Vessels with longer journeys have a limited food supply, so each person gets only one portion. Fresh food is hard to come by after a few months since it will have gone bad already.

For sleeping accommodation, ship crewmates of a higher rank may get their own room and bed. Deckmates and other roles share a cabin and bunk bed with others on the boat. Toilets and a shower room are also for communal use.

Maintaining Gear and Equipment

Cargo ship workers are responsible for a lot of gear and equipment, which isn’t always smooth sailing. For instance, marine freshwater tanks store water for drinking and cooking. These portable liquids should be clean and free of infection. Unfortunately, they are still subject to contamination, which can cause Legionnaires’ disease among the crew.

There’s also the struggle of inclement weather when on board. Whether rain or shine, the boat needs to continue moving forward. The crew must be prepared to move items and evacuate the area if any damage occurs to the hull due to turbulent sailing conditions.

Foul weather gear is recommended since it has a water-repellent finish to protect the material. However, it diminishes after every 20 to 30 uses. Wearing it every day during the rainy season can affect its quality before the ship even gets to its destination.

In those cases, workers have to rewax the area to achieve the waterproof effect again. If the layers are separating from the interior fabric, report to a manager to get a new suit.

Navigating the Work Culture

There is still a stigma that the maritime industry is only for men due to traditional gender roles. However, many female seafarers have created a mark on the industry. For example, Caroline Mayhew became a captain in 1846 after her husband and crew members fell victim to the smallpox epidemic. She was able to steer the vessel to safety.

Numerous modern-day heroines are still pursuing careers on cargo ships. While some crew members are less than respectful towards women and the work culture still needs improvement, the space is slowly changing to become more inclusive. Look for employers focusing on each person’s safety and mental well-being while on the clock.

Managing Personal Time

One key reality about working on a cargo ship is how hard a work-life balance is to achieve. A rating can take around nine months or so. In that time, a crew member can miss a holiday, a loved one’s birthday and other important events.

It’s challenging to manage personal relationships. However, some people do maintain friendships and families while sailing worldwide. Just communicate and set expectations with loved ones before the next venture.

The Truth of Cargo Ship Life

Staying afloat during a cargo ship’s trials and tribulations is challenging and rewarding. Acknowledge the realities and appreciate the people within the field. Those with a newfound respect or admiration for the trade are more than welcome to join.

Global Logistics, Global Trade Daily

What Should Lumber Supply Chain Professionals Know About the FSC?

June 3rd, 2024 Oscar Collins Leave a comment

Lumber supply chain professionals have a significant responsibility to deliver quality wood products to consumers worldwide.

Many mandatory regulations need to comply as a legal requirement for operations, but companies can take advantage of optional yet beneficial memberships and certifications.

For example, complying with the FSC and obtaining their endorsement can bolster a brand and its products.

What Is the FSC?

The Forest Stewardship Council (FSC) is a non-governmental organization that believes in responsible forest management worldwide. Created in the 1990s, the pioneer group has paved the way for sustainability and became the most trusted forest certification system in the world.

The FSC understands various issues regarding the forest, with environmental conversation at the top. According to the Food and Agriculture Organization of the United Nations, agricultural expansion is responsible for nearly 90% of global deforestation in 2021. As climate change continues to impact the world, establishments must minimize their environmental influence.

There’s also the responsibility of forest management operations. Each decision and potential outcome can take a great toll on humanity. Aside from being a workplace to many industries, the woodlands are also home to creatures and communities.

The FSC recognizes protecting and regulating forest use requires the cooperation of all individuals. Through the collective effort of multiple staff members and certification holders, it aims to achieve woodland restoration, and respect between communities and consumers.

FSC Certification for the Lumber Industry

FSC endorsement can either be Forest Management Certification or Chain-of-Custody Certification. Forest Management Certification usually indicates the FSC’s trained workers are managing a forest area. Over 500 million forest acres are FSC certified, accounting for 12% of the world’s woodland.

Protected forestry should aim to maintain its biological diversity. While it is possible to source wood from areas without Forest Management Certification, it is imperative to prioritize the health and well-being of the space first.

The Chain-of-Custody Certification is best for lumber supply chain professionals, as it addresses forest-based product ownership and distribution. It is applicable whether a company produces completed goods or supplies materials for other finished goods.

FSC-certified materials hold a tick-tree logo. Having that trademark on product packaging generally means being a provider or supplier committed to protecting forests and materials sources.

There are many FSC-certified products available. In addition, 56% of global consumers recognize the FSC logo.

Imagine if a consumer wants to whittle soft wood blocks for their project. They search for the materials in bulk and look at two variations. Product A has FSC certification, while Product B doesn’t. Since consumers know FSC materials are more ethically sourced and packaged, they are more inclined to choose Product A. Bearing the logo can be important to boosting sales.

FSC Objectives and Impact on the Lumber Industry

The lumber industry requires plenty of timber to sustain itself. Wood is in demand for housing construction, art projects and more. However, trees are still relatively limited despite being a renewable resource, as it takes years to grow quality greenery. The World Economic Forum even reported lumber businesses are moving down south for extra resources.

The FSC does not aim to eliminate the total use of forests. Instead, its main objective is to create an environmentally friendly relationship with these parts of the world. This vision can benefit natural resources and those who need them without tipping the balance and contributing to further global warming.

The FSC’s impact on the lumber industry is profound. Its continuous promotion of environmental stewardship has already connected with many enterprises. Plus, it deters illegal logging or resource use in the long run, upholding the U.S. Lacey Act in the market with its certification.

How the FSC Certification Process and Criteria Look

The three main stages of the FSC certification process revolve around fulfilling requirements, adhering to the application process and being amenable to monitoring during evaluation. Lumber supply chain professionals should commit to each phase to qualify for endorsement.

Requirements

The FSC has three labels, each with specific requirements. For example, the FSC 100 label requires timber sourced from FSC-managed forests. Meanwhile, the FSC Recycled needs wood to be comprised of reclaimed materials.

There’s also the FSC Mix. This label means products combine different materials from responsible sources. These can include materials sourced from FSC-managed forests and recycled products simultaneously.

All still fall under the Chain-of-Custody Certification. This endorsement also requires brands to eliminate child or forced labor. There should also be equal opportunities when it comes to employment and occupation without discrimination.

Process

The first step to achieving endorsement is to seek an independent and FSC-accredited certification body. There are many options for enterprises worldwide. In the U.S., SCS Global Services is a prominent organization that provides sustainable certification of all kinds. However, it is possible to choose other bodies to work with.

The next step is to submit an application to determine whether a company meets the requirements. If a lumber supply chain business is approved, it gets the Chain-of-Custody Certification. Then, it can begin to brand and sell FSC-certified products.

Monitoring

Some lumber supply chain professionals think getting certification means it lasts forever. However, the FSC continues to monitor certified supply chains and conduct an annual audit to act against violating enterprises.

The FSC is utilizing blockchain technology to monitor supply chain problems for maximum efficiency. Essentially, the tech tracks source materials and their movement throughout the world, serving as a compliance check for those with FSC certification.

Blockchain technology also prevents suppliers from falsely claiming FSC verification. Many put the logo on without upholding the organization’s values, so they aim to take strong action against those who harm the FSC’s reputation and claims.

Further FSC Certification Intervention in the Supply Chain

FSC Certification primarily applies to wood on its own. That said, lumber supply chain professionals understand many other industries utilize wood. It is used in construction, furniture, art, paper production and so on.

Back then, the only similarity between FSC Certification and environmental verification programs like Rainforest Alliance’s Supply Chain Certification was that they promoted sustainability in farms and trading. Rainforest Alliance teaches and requires forest protection, and fights deforestation, but they focus more on commodities like chocolate, coffee, tea and more.

Currently, the FSC is exploring that dynamic by expanding its certification program for other industries sourcing from the forest. Aside from the more obvious sectors in which wood is utilized, its influence extends to other creative uses of timber.

For example, man made cellulosic (MMCFs) are fabric fibers made from wood pulp. About 7.2 million tons of MMCFs were created in 2021 for fashion and clothing. As the material relies on these natural resources, companies are encouraged to work with FSC-certified suppliers and prioritize sustainability.

See the Value in FSC Certification

The FSC has a strong mission of protecting the forest and recognizes the importance of working with businesses to achieve this. Lumber supply chain professionals should answer the call.

Plus, there are multiple benefits to getting certification, such as positioning the brand as an environmental steward, and attracting partners and consumers.