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Dangerous goods survey identifies global compliance challenges

Compliance challenges of hazmat shipments of export cargo and import cargo in international trade.
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Dangerous goods survey identifies global compliance challenges

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Labelmaster, a leading provider of labels, packaging, and technology for the safe and compliant transport of dangerous goods (DG) and hazardous materials (hazmat), has announced the results of its annual 2018 Global Dangerous Goods Confidence Outlook.

Sponsored by Labelmaster, International Air Transport Association (IATA), and Hazardous Cargo Bulletin, the survey was conducted to gain insight into how organizations around the globe approach DG shipping and handling, and the challenges they face.

“Shipping dangerous goods is complex and high-risk, and those responsible for compliance have an increasingly critical job,” said Rob Finn, vice president of marketing and product management at Labelmaster. “In an effort to better understand today’s dangerous goods landscape, Labelmaster, IATA and Hazardous Cargo Bulletin partnered to gather insights from DG professionals across the globe. We found that while many organizations have the necessary infrastructure, training and processes to ensure compliance across their supply chains, a large number do not.” Key findings from the survey include:

Keeping up with regulations and ensuring compliance is challenging. Regulatory compliance is critical to an organization’s ability to maintain a smooth supply chain. Yet with growing volumes and types of DG, increasingly complex supply chains, and more extensive regulations, many industry professionals find it challenging to do their jobs effectively and efficiently. 51 percent find it challenging to keep up with the latest regulations, 15 percent were not confident that they can ensure DG regulatory compliance across their entire organization, and 13 percent were unsure; and 58 percent feel that even if they follow the regulations perfectly there is a chance their shipments will be stopped. The greatest challenges to compliance were  budget constraints, lack of company leadership, insufficient or ineffective training, lack of technology, and difficulty in keeping up with changing regulations.

Compliance technology and training is often inadequate.  Those responsible for DG face an uphill battle in overcoming inadequate infrastructure and training. Technology is critical to the supply chain, and significantly improves efficiency, speed, accuracy and more. And even with a number of technology resources available, 28 percent of DG professionals are still doing everything manually. Furthermore, 15 percent believe their company’s infrastructure ability to quickly adapt to regulatory and supply chain changes is “lagging behind the industry,” 65 percent said it is “current, but need updating” and 21 percent believe it is “advanced – ahead of the industry.”

The need for improvement extends to training as well. One-quarter of respondents feel their company’s training does not adequately prepare people within the organization to comply with DG shipping regulations. In many cases, the scope of employees being trained needs to be expanded. In fact, 67 percent of respondents believe DG training should be extended to other departments across their company.

An organization’s attitude towards compliance impacts its level of investment. An organization’s attitude towards DG compliance has a direct impact on how much a company invests in compliance resources. Unfortunately, their attitude towards compliance often does not reflect its true value. According to the survey, 16 percent indicated that DG compliance is not a major priority for their company, 54 percent wish their companies would understand that supply chain and DG shipping management could be a differentiator, 27 percent think their company’s investment to support DG compliance is “not adequate to meet current needs,” 28 percent believe their company complies “only because regulations mandate it, and adhere to minimum requirements,” 48 percent believe their company “goes beyond requirements,” and 23 percent view compliance as a “competitive advantage.”

DG professionals desire additional support. Investment in infrastructure and training is critical to enabling DG professionals to do their jobs effectively and efficiently, and whether their budgets have increased, decreased or stayed the same, DG professionals desire additional support. When asked how they would prioritize financial support from their organization: more effective training (42 percent); technology for better supply chain efficiency and compliance (29 percent); wider access to the latest regulatory resources and manuals (18 percent); and additional headcount (12 percent) were the top answers.

“The risk associated with shipping and handling dangerous goods is greater than ever and industry professionals responsible for managing it need the proper technology, training and regulatory access to ensure they are moving goods in a secure, safe, compliant and efficient manner,” said Finn. “Unfortunately, obtaining the necessary budget and resources likely requires buy-in from executive leadership, which can be an uphill battle. So how do you get that buy-in? It starts with changing the conversation around DG management.”

Protectitonism could jeopardize growth in shipments of export cargo and import cargo in international trade.
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UN Report: Trade war threatens outlook for global shipping

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The outbreak of trade wars and increased inward-looking policies threaten the prospects for seaborne trade.

That was the outlook projected by UNCTAD Secretary General Mukhisa Kituyi when launching the 2018 edition of the UNCTAD Review of Maritime Transport at the Global Maritime Forum’s Annual Summit now taking place in Hong Kong.

“Escalating protectionism and tit-for-tat tariff battles,” said Kituyi, “will potentially disrupt the global trading system which underpins demand for maritime transport.”

The warning comes against a background of an improved balance between demand and supply that has lifted shipping rates to boost earnings and profits. Freight-rate levels improved significantly in 2017 except in the tanker market, supported by stronger global demand, more manageable fleet capacity growth and overall healthier market conditions.

Seaborne trade expanded by a healthy four percent in 2017, the fastest growth in five years, and UNCTAD forecasts similar growth this year, subject to the warning over trade and tariff wars. Volumes across all segments are set to grow in 2018, with containerized and dry bulk commodities expected to record the fastest growth at the expense of tanker volumes.

Supply-demand improvements, namely in the container and dry bulk shipping segments, are expected to continue in 2018. Freight rates may benefit accordingly, although supply-side capacity management and deployment remain key. UNCTAD projects an average annual growth rate in total volumes of 3.8 percent to 2023.

On the supply side, after five years of decelerating growth, 2017 saw a small pick-up in world fleet expansion. During the year, a total of 42 million gross tons were added to global tonnage, equivalent to a modest 3.3-percent growth rate.

Germany remained the largest containership-owning country with a market share of 20 percent at the beginning of 2018. Owners from Greece, China, and Canada expanded their containership-owning market shares last year.

In 2018, the Marshall Islands emerged as the second largest registry, after Panama and ahead of Liberia. More than 90 percent of shipbuilding activity in 2017 occurred in China, the Republic of Korea, and Japan, while 79 percent of ship demolitions took place in South Asia, notably India, Bangladesh, and Pakistan.

Liner shipping consolidation, technological advances, and climate change policy are key drivers of change in global shipping, the report says. Consolidation activity in liner shipping continued unabated: the liner shipping industry witnessed further consolidation through mergers and acquisitions and global alliance restructuring.

As of January 2018, the Top 15 shipping lines accounted for 70.3 percent of all capacity. Their share has increased further with the completion of the operational integration of the new mergers in 2018, with the Top 10 shipping lines controlling almost 70 percent of fleet capacity as of June 2018.

Three global liner shipping alliances dominate capacity deployed on the three major East-West container routes, collectively accounting for 93 percent of deployed capacity. Alliance members continue to compete on price while operational efficiency and capacity utilization gains are helping to maintain low freight-rate levels. By joining forces and forming alliances, carriers have strengthened their bargaining power vis-à-vis the seaports when negotiating port calls and terminal operations.

Growing consolidation can reinforce market power, potentially leading to decreased supply and service quality, and higher prices. Some of these negative outcomes may already be in effect. For example, in 2017–2018, the number of operators decreased in several small island developing states and structurally weak developing countries.

“There is a need to assess the implications of mergers and alliances and of vertical integration within the industry, and to address any potential negative effects. This will require the commitment of all relevant parties, notably national competition authorities, container lines, shippers and ports,” said Shamika N. Sirimanne, Director of UNCTAD’s Division on Technology and Logistics.

Port traffic volumes picked up speed: global port activity and cargo handling expanded rapidly in 2017, following two years of weak performance. UNCTAD estimates that 752 million twenty-foot equivalent units were moved at container ports worldwide in 2017. The outlook for global port handling activity remains positive supported by projected economic growth and port infrastructure development plans.

Port operations, performance and bargaining power continued to be defined by mega-ship deployment and alliance restructuring: Liner shipping alliances and vessel upsizing have made the relationship between container shipping lines and ports more complex and triggered new dynamics where shipping lines have a stronger bargaining power and influence.

Increases in the size of vessels and the rise of mega-alliances have heightened the requirements for ports to adapt. While liner shipping networks seem to have benefited from efficiency gains arising from consolidation and alliance restructuring, for ports, the benefits did not evolve at the same pace. This dynamic is further complicated by the shipping lines often being involved in port operations which in turn could redefine approaches to terminal concessions.

The report says that global ports and terminals need to track and measure performance as port performance metrics enable sound strategic port planning, investment and decision-making.

Technological advances in the shipping industry, such as blockchain applications, cargo and vessel tracking, autonomous ships, and the Internet of Things, hold opportunities for the global shipping industry. However, there is still uncertainty within the maritime transport industry regarding possible safety, security and cybersecurity incidents, as well as concern about negative effects on the jobs of seafarers, most of whom come from developing countries.

The climate change agenda remains a priority. The shipping industry must reduce greenhouse gas emissions, the report says, welcoming among international efforts the April 2018 adoption by the International Maritime Organization (IMO) of an initial strategy aimed at reducing by at least half the total annual emissions from ships by 2050 compared to 2008.

The IMO strategy identifies potential short-, mid- and long-term further measures with possible timelines, and their impacts on States, highlighting the need to pay attention to the needs of developing countries, especially small island developing states and least developed countries.

Depending on the outcome of negotiations and the specific design of any future instrument, it will be important to assess the related potential implications for carriers, shippers, operating and transport costs as well as the cost of trade. It will also be important to assess the benefits associated with these measures, including market-based instruments in shipping and how these could be directed to address the maritime transport and logistics challenges facing developing countries, the report says.

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Investors, industry welcome new NAFTA, but with some caveats

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It’s no longer the North American Free Trade Agreement—NAFTA—it’s now the United States-Mexico-Canada Agreement (USMCA). The name change is nothing more than a Trumpian rebranding of what’s been called the “old lady of FTAs.”

No question, NAFTA needed updating, and that’s exactly what USMCA does. But USMCA, contrary to what President Donald Trump says, is not something new under the sun, but represents a tweaking of the older agreement. It’s also worth noting that much of what was achieved with USMCA was already included in the Trans-Pacific Partnership (TPP), a twelve-nation agreement that included the three NAFTA partners, which Trump spurned as soon as he entered the presidency.

USMCA has Trump embracing globalism to a certain extent, but without the TPP, the United States squandered much of the leverage it had over China on trade, making it that much more difficult to achieve US goals on that front.

The merits of the agreement aside, investors and industries embraced USMCA, primarily because it removed a major element of uncertainty on the global stage, which could be described in two parts: whether Canada would be part of a new agreement and whether there would be a North American trade agreement at all.

“Wall Street clearly loves the US-Mexico-Canada Agreement,” said financial guru Hilary Kramer. “This is great for North American energy independence. Oil can keep flowing, which is part of why” there have been surges in oil stocks in both Canada and the US.

“And the “green” stocks that have been driving the Canadian market may finally get crossborder clarity too,” Kramer said.

Auto dealers greeted the North American trade deal with relief. “Uncertainty is the enemy of business, large and small,” said Cody Lusk, CEO of the American International Automobile Dealers Association. The USMCA announcement “allows the entirety of the auto industry, from manufacturers to hometown dealers, to once again plan for the future.”

But Lusk continues to be concerned over the Department of Commerce’s ongoing Section 232 tariff investigation, “and the threat of massive new tariffs on imported autos and parts.” “Dealers will continue to urge the Trump administration and Congress to pursue positive trade policies that keep the American auto industry open, dynamic, and competitive,” said Lusk.

Another cautionary note was voiced by Nathan Nascimento, executive vice president of Freedom Partners. “We will closely examine the new agreement,” he said, which we hope will facilitate prosperity and opportunity for American families and businesses by reducing barriers to trade. We remain concerned, however, by quotas or other protectionist policies of any kind,” referring to the steel and aluminum tariffs, which remain in force, “that drive up costs for everyone, while protecting only a few jobs at the expense of many others.” Trade with Mexico and Canada, Nascimento also noted, supports 11 million US jobs and is responsible for half a trillion dollars in US exports.

Representatives of the recreational boating industry in the US and Canada also breathed a sigh of relief. “We welcome the USMCA, which includes cornerstone NAFTA principles,” said a statement from Thom Dammrich, President of the National Marine Manufacturers Association (NMMA), and Sara Anghel, President of NMMA Canada. “Anything less would have had debilitating consequences on all sectors of the North American economies. Now, it is time for all three countries to stay at the table and deal with Section 232 tariffs and retaliation. US boat exports” to Canada and Mexico “have all but dried up” as a result of retaliation to the 232 tariffs. “Negotiators should seize the opportunity and immediately resolve this issue.”

In the end, opined Duncan Wood, director of the Mexico Institute at The Wilson Center, a Washington think tank, “Reason and a mutually beneficial outcome have prevailed.” “The deal appears to take care of Canada’s most deeply- held concerns while opening its politically important dairy sector to competition,” he added. “There is going to be widespread celebration that the uncertainty is over, and that the three countries can move forward with the final text of the agreement. The new North American deal looks a lot more like an agreement for the 21st century.”

The new treaty could be signed by all countries within 60 days, and will need to be passed by Congress.

UPS is seeking to handle more shipments of export cargo and import cargo in international trade.
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UPS transformation relies on four strategic pillars

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UPS’s transformation program, its CEO explained at a recent conference in New York, leverages scale and institutionalizes processes to ensure the company captures efficiency gains, and reinvests savings through realignment of talent and financial resources on priority growth areas outlined in its business strategy.

The company is focused on four strategic imperatives where it is well-positioned for profitable growth: continued expansion of high-growth international markets; profitable expansion from both B2B and B2C ecommerce; further penetration of the healthcare and life sciences logistics market; and enhancing services and value for small- and medium-sized businesses.

International markets is where the company connects domestic and export customers to its global network. US ecommerce package revenue is expected to grow by 40 percent from 2017 to 2022, and cross-border e-commerce volume is expected to grow by 28 percent over the next three years. Healthcare and life sciences logistics will expand, given the increasing shift toward home healthcare, where UPS’s residential delivery network will provide new value for healthcare companies and consumers. SMBs will benefit, the company reckons, from UPS’s repositioning of its commercial and service strategies to help this segment reduce logistics complexity and costs and take advantage of UPS-offered technology platforms.

“Transformation will lift our earnings, as we generate higher-quality revenue and use technology to increase operating efficiency and enhance customer service,” said David Abney, chairman and chief executive officer. “UPS is transforming from a position of strength. We are implementing an enterprise-wide transformation that will enable and accelerate our enhanced business strategy.”

UPS’s business strategy includes continued capital investment in its vast global network at previously announced levels. New and renovated facilities, aircraft and fleet assets are coming online at record levels during the next four years. In 2018, 2019 and 2020, UPS will add 350,000-400,000 pieces per hour of sortation capacity in the US each year, which is about seven times the additional sortation capacity added in 2017, alone.

“Today nearly 50 percent of our nearly 35 million sorted packages per day are processed using our new more-automated facilities. When we complete this phase of our Global Smart Logistics Network enhancement by 2022, 100 percent of eligible volume in the US will be sorted using these new more highly automated sites,” said Abney.

Seven new super-hub automated sortation facilities will be opened during the period, with 30-35 percent higher efficiency than comparable less-automated facilities. More than 70 expansion projects will be implemented during the period. UPS will have completed 17 projects in 2018, in time for the peak holiday shipping season.

The US domestic segment will receive approximately two-thirds of the benefits of the transformation program. Initiatives throughout the unit’s operations will enhance revenue quality and reduce operating costs to increase operating leverage.

The company has in the last two years significantly increased total International capacity, allocating much of the added volume to higher-margin export and premium services. Intercontinental air express capacity has risen more than 10 percent as new, higher capacity cargo jets are added to the fleet. The company has completed about two-thirds of its previously announced European network expansion and has recently opened new super hubs in Paris and London, and several other new sortation and delivery facilities throughout the region.

The Supply Chain and Freight unit has delivered strong performance in recent quarters from new revenue management initiatives, a stronger focus on mid-sized customer growth and continued, disciplined cost management.

One of the main elements of UPS’s company-wide drive for efficiency is using common processes and leveraging scale to reduce procurement and operating costs. The company is also using technology to streamline back-office activities, further outsourcing certain transactional activities and broadening spans of control within management for greater overall efficiency.

“Our transformation touches every part of the company,” Abney continued. “Most important, we are implementing changes that strengthen the ongoing core earnings power of the company. The savings we achieve will be reinvested in the company and its people, and will be used to reward shareowners. Our leadership team is collaborating to instill a continuous transformation culture and I am confident our plans will deliver higher levels of UPS profitability and shareowner returns.”

US seaports handle shipments of export cargo and import cargo in international trade.
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AAPA concerned over US trade tariffs

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With the United States government’s announcement on the imposition of an additional $200 billion in protective trade tariffs against Chinese imports, the American Association of Port Authorities (AAPA) continues to urge the administration and federal policymakers to consider the negative impacts that tariffs have on port and other trade-related US jobs nationwide, including the effects of retaliatory responses. The new tariffs took effect on September 28 with the imposition of a 10-percent tariff which will increase to 25 percent by the end of the year.

“The impact of expanding Section 301 tariffs on cargo and equipment moving through American ports is already proving to be significant,” said AAPA President and CEO Kurt Nagle. “Including the additional $200 billion just imposed, the total Section 301 tariffs on Chinese commodities and China’s response in retaliation responses covers about 10 percent of all trade that moves through America’s ports by value, which is concerning.

“AAPA was pleased, however, to see that port cranes, tariff line 8426.19, were removed from the list, as we recommended at the recent hearings,” Nagle added. “Tariffs on these cranes, which cost upwards of $14 million each, would have harmed ports’ ability to make the investments necessary to handle the larger vessels now being used in ocean trade and hurt US international competitiveness.”

At $4.6 trillion a year, the value of cargo activities at America’s seaports are significant drivers of the US economy, supporting more than 23 million American jobs and generating over $320 billion in annual federal, state and local taxes. All but one-percent of the nation’s overseas trade moves through its maritime facilities.

“Because trade supports everyone, AAPA is encouraging federal policymakers to work swiftly to restore market certainties and forge paths to expand US exports, rather than create new import restrictions,” said Nagle.

During the USTR’s Section 301 hearings in late August, AAPA urged that the multi-million-dollar container cranes that US ports have on order and are considering purchasing from Chinese factories, for which there are no American-made alternatives, be exempt from tariffs. USTR did remove tariff line 8426.19 from the final list so these large cranes are not subject to the newly announced tariffs.

Expansion will allow port to handle more shipments of export cargo and import cargo in international trade.
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GPA approves $92-million rail expansion

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During a meeting of the Georgia Ports Authority board of directors in Atlanta last week, the GPA approved $92 million for the Mason Mega Rail Terminal. The project will double the Port of Savannah’s annual rail capacity to one-million containers and deliver the largest on-terminal rail facility in North America by 2020.

The Georgia Ports Authority (GPA) also announced it had moved 375,833 TEUs in August, an eight-percent increase over August 2017.  In addition, the GPA handled 86,200 intermodal TEUs, a 33 percent jump.

“A strengthening economy and a greater reliance on GPA in major inland markets is driving growth at the Port of Savannah,” said GPA Executive Director Griff Lynch. “We expect this trend to continue as more customers take advantage of Garden City Terminal’s central location and efficient terminal operations.” In August alone, rail cargo to and from Atlanta leapt by 34 percent, while Nashville saw an increase of 72 percent.

“It is no accident the GPA is constructing rail capacity as the demand for rail is growing,” said GPA Board Chairman Jimmy Allgood. “As part of our strategic planning two years ago, our team identified the growing role intermodal cargo would play in GPA’s long-term success and put into place this plan for expansion.”

The work approved by the board Monday includes 124,000 feet of new track, 88 automated switches and rail control devices, as well as the rail and power infrastructure to support the operation of rail-mounted gantry cranes.

The added rail capacity will better accommodate 10,000-foot long unit trains on Garden City Terminal.  These more cost-effective trains will provide faster, more frequent service over greater distances. This will extend the territory best served by the Port of Savannah along an arc of cities ranging from Memphis to St. Louis, Chicago and Cincinnati.

Trump has imposed tariffs on Chinese shipments of export cargo and import cargo in international trade.
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The negative impact of tariffs on US companies in China

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With trade tensions between the United States and China escalating, AmCham China and AmCham Shanghai conducted a survey of member companies to measure the impact of tariffs imposed by the US and Chinese governments.

The survey was conducted between August 29 and September 5, 2018. Over 430 companies responded to the survey, of which 60.6 percent are in manufacturing-related industries, 25.8 percent in services, 5.5 percent in retail and distribution, and 8.1 percent in other industries.

The survey found that the negative impact of tariffs is clear and far-reaching, with rising costs being a top concern. Over 60 percent of respondents said the initial $50-billion of tariffs from both the US and China negatively impacted their companies. Nearly three-quarters expected to be negatively affected by the second round of US tariffs and over two-thirds say the same for Chinese tariffs.

The practical impact of the combined tariffs is reflected in loss of profits—reported by 50.8 percent of respondents—higher production costs (47.1 percent), and decreased demand for products (41.8 percent). Fewer than 12 percent of respondents have laid off employees, although that number should rise with the second round of tariffs.

Over half of respondents note an increase in non-tariff barriers. China has threatened to use qualitative measures in addition to tariffs in responding to US actions, since it can’t match US tariffs dollar for dollar. Over 50 percent reported suffering the consequences of these measures, mainly through increased inspections (27.1 percent) and slower customs clearance (23.1 percent).

Some companies are reassessing their investment plans. Many companies are seeking to adjusting their supply chains by sourcing components and/or assembly outside of the US (30.9 percent) or China (30.2 percent). Nearly one-third said they are considering delaying or canceling investment decisions. But a majority of nearly two-thirds have not relocated and are not considering relocating manufacturing facilities out of China. Among those who are, the top destinations are Southeast Asia

and the Indian subcontinent. Only six percent say they are considering relocation back to the US.

Autonomous trucks could carry shipments of export cargo and import cargo in international trade.
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Volvo Trucks unveils autonomous electric vehicles

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Volvo Trucks is now presenting a new transportation solution consisting of autonomous electric commercial vehicles that can contribute to more efficient, safer, and cleaner transportation. The long-term goal is to offer companies that need continuous transport services between fixed hubs a complement to today’s offerings.

Growing world population and increasing urbanization are leading to significant challenges to solve environmental issues such as congestion, pollution and noise. Rising consumption, the fast growth of e-commerce and the wide-spread shortage of drivers put higher demands on efficient transport solutions.

“The full potential of the transport industry is yet to be seen,” said Claes Nilsson, president of Volvo Trucks. “Everything suggests that the global need for transportation will continue to significantly increase in the coming decade. If we are to meet this demand in a sustainable and efficient way, we must find new solutions. In order to secure a smoothly functioning goods flow system we also need to exploit existing infrastructure better than currently.

“The transport system we are developing can be an important complement to today’s solutions and can help meet many of the challenges faced by society, transport companies and transport buyers,” Nilsson added.

Volvo Trucks’ future transport solution is intended to be used for regular and repetitive tasks characterized by relatively short distances, large volumes of goods and high delivery precision. Transports between logistic hubs are typical examples, but additional use cases can also be applicable.

“Our system can be seen as an extension of the advanced logistics solutions that many industries already apply today,” said Mikael Karlsson, vice president of autonomous solutions. “Since we use autonomous vehicles with no exhaust emissions and low noise, their operation can take place at any time of day or night. The solution utilizes existing road infrastructure and load carriers, making it easier to recoup costs and allowing for integration with existing operations.”

The operation is handled by autonomous electric vehicles linked to a cloud service and a transport control center. The vehicles are equipped with sophisticated systems for autonomous driving. They are designed to locate their current position to within centimeters, monitor in detail and analyze what is happening with other road users, and then respond with high accuracy.

The transport control center continuously monitors the progress of the transport and keeps an accurate watch of each vehicle’s position, the batteries’ charge, load content, service requirements and a number of other parameters. As with an industrial production process, speed and progress are tailored to avoid unnecessary waiting and to increase delivery precision. In this way it will be possible to minimize waste in the form of buffer stocks, and increase availability. Vehicles that operate on the same route cooperate to create optimal flow.

In the near future, Volvo Trucks’ transport solution will be further developed together with selected customers in prioritized applications.

Trump has imposed tariffs on steel and aluminum shipments of export cargo and import cargo in international trade.
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Trump’s tariffs: How is the exclusion process working?

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On March 8, following recommendations by the Commerce Department, President Donald Trump imposed 25-percent tariffs on steel imports and 10-percent tariffs on aluminum imports. The Commerce Department put procedures in place to allow US companies to seek exemptions from those tariffs.

According to data compiled by the Center for Strategic and International Studies, as of August 30, United States companies have made over 30,000 requests to the Commerce Department to be excluded from the tariffs. Of those, Commerce has posted decisions on only 4,358 of those requests, well under 15 percent of those pending. There is no opportunity for US manufacturers to refute an objection to their exemption request nor appeal a Commerce Department decision.

Sources tell Global Trade Daily that they expect the process to be extremely slow. One southern port filed for an exemption to the extra duties it had already paid to import container cranes from China needed to update port equipment, but have heard nothing yet from the Commerce Department.

The CSIS analysis shows a rapid accumulation over the past few months of tariff exclusion requests over broad US geographical areas. Over 26,700 steel exclusion requests span 239 of 435 congressional districts and 45 states plus Puerto Rico. The seventh district in California had the highest number of firms filing—18 firms in that one district.

The aluminum tariff exclusion requests span 87 congressional districts and 28 states plus Puerto Rico. The Illinois fifth district had the highest number of aluminum exclusion requests—665, filed by two firms. Ohio’s first district had the second highest number of filings—334 exclusion requests by one firm.

Software manages shipments of export cargo and import cargo in international trade.
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Descartes MacroPoint Capacity Matching helps freight brokers address tight transportation capacity

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Descartes Systems Group has announced that it has successfully deployed its advanced capacity matching solution, Descartes MacroPoint Capacity Matching, with several freight brokers. The solution provides freight brokers with greater visibility to the transportation capacity available within their network of carriers and cooperating brokers. By unlocking previously trapped freight capacity using advanced visualization and analytical capabilities, freight brokers can cover more loads, build stronger carrier relationships and reduce costs.

Descartes MacroPoint, part of the Descartes Global Logistics Network, operates one of the industry’s largest visibility networks, which connects over one hundred thousand road carriers and more than four million trucking assets and drivers. The reach and scale of the Descartes GLN enables freight brokers using the Descartes MacroPoint Capacity Matching solution to more effectively and efficiently match customer loads with available carrier capacity.

“By leveraging Descartes MacroPoint Capacity Matching, TransAm Logistics is getting access to significantly more capacity than we would by only using our transportation management system,” said Jared Taylor, the company’s vice president and general manager. “The solution provides visibility to capacity two to five days out which allows my team to be much more productive.” TransAm Logistics, a trucking services company operating in all 48 contiguous states, supports LTL, truckload, refrigerated, air, intermodal, and flatbed transportation.

The Descartes solution combines three major innovations: market visualization; artificial intelligence (AI)-based capacity matching; and a capacity co-op. Visualizing market capacity relative to open loads allows freight brokers to quickly identify which loads represent the best matching opportunity. Seeing carriers’ historical lane performance enables freight brokers to select the right carrier, thereby building stronger relationships and securing better rates.

AI-based capacity matching provides freight brokers with the best ranked carriers to call, and only includes carriers who have assets available. With a ranked list of carrier matches, freight brokers can cover loads in a fraction of the time. The capacity co-op provides an opt-in network where freight brokers can selectively choose to share their unused capacity in a secure way and get significantly more access to capacity in return.