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Air Freight Rates May Be Spiking Now but a Fall in Rates Looks Possible

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Air Freight Rates May Be Spiking Now but a Fall in Rates Looks Possible

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The airline sector is recovering. As Willie Walsh, the former CEO of British Airways and now Director General of IATA said on Thursday, “the recovery in air travel is gathering steam as governments in many parts of the world lift travel restrictions.

States that persist in attempting to lock-out the disease, rather than managing it, as we do with other diseases, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring,” Willie Walsh is, of course, referring to China, which continues the most savage response to COVID-19 outbreaks. This is placing a break on the bounce-back of air traffic at the global level.

The rest of the world is doing its best to compensate. Total air traffic measured in revenue passenger kilometers increased 115% year-on-year in February 2022, although this is still 45.5% less than the volumes seen in February 2019. In particular international traffic is recovering violently, with a 256.8% increase year-on-year, although this is 59.6% lower than 2019, showing how severe the crash in international air traffic has been.

In terms of demand, air cargo is a very different market. Over the past two years the market for cargo has often been extraordinarily strong in the face of a near absence of belly freight. Demand is still respectable, with global traffic measured in cargo ton-kilometers up 2.9% year-on-year for February, with a slight bias to domestic operations, possibly due to e-commerce traffic in markets such as the US. However, IATA also reports that actual ton-kilometers, that is the volume of cargo carrying capacity available, increased 12.5% year-on-year in February, whilst load-factors fell 4.9%.

Cargo capacity is still 5.6% below February 2019, but demand is not increasing as fast as it was in December 2021. If these trends are sustained the implications are that the balance between air cargo capacity supply and air cargo demand will tip towards lower prices.

The disruptions in China and Hong Kong are taking their toll, as is the avoidance of Russian airspace by many airlines, with air freight rates reportedly spiking on China-Europe routes in recent days.

However, as Willie Walsh commented “Demand for air cargo continued to expand despite growing challenges in the trading environment. That is not likely to be the case in March as the economic consequences of the war in Ukraine take hold. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty will take their toll on air cargo’s performance”.

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Archives, Foreign Trade Zones, Global Logistics, Global Trade Daily, News, War

Supply Chain Pressures from COVID Lockdowns in China, Russia- Ukraine War and Rising Oil Prices

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Implications of the Russia-Ukraine war 

“Logistics companies are wary of trade lanes, trade partners and shipments to and from Russia. Market volatility has caused uncertainties in the market which has caused massive delays and reduced capacities.”

“COVID induced lockdowns in China and the Russia-Ukraine war has torn apart the expectations of recovery of the supply chain, which has been grappling to keep up to the pressures of implications resulting from these and many more disruptions.”

“The War has impacted Europe greatly. First, Containers are stuck in the terminals waiting for transhipments to Russia and the result is a huge pileup there. The second significant impact is on the China- Europe rail. The northern corridor is still open, but volumes are massively reduced due to uncertainty in the market. That has pushed cargo towards sea freight and even in some cases towards air freight. Low-value cargo has largely suffered because high-value cargo has been pushed to the ocean transport.”

“On a more global scale, the rise in oil prices has been a major repercussion as a result of the war. More logistic players are unclear about the restrictions of doing business with many companies because there are second order and third order sanctions that are also required to be considered while doing business. Companies are hesitant to make decisions, selection of new partners is significantly impaired.

China lockdowns  

There is market commentary about expectations of significant decrease in freight rates. I don’t think that will happen necessarily in the short term, but in the mid-term to long term, this will lead to increase in rates.

“It’s almost like in a traffic jam. Some people now stepped on the brakes really heavily and the problem is that this will lead to a significant sort of bulk up in demand for freight services which will essentially be unleashed once the factories reopen. And when the demand is back, the carriers will again not have enough equipment on the ground because not enough equipment went into China during the Port lockdowns and not enough vessels are available so that will push up prices once again.

So this will continue pushing the volatility in the market and the congestion situation on the Transpacific will also not significantly improve because it’s almost like a start-stop situation. It will just come back worse than it was because the way you remove the traffic jam is not by stopping something violently and then hitting the accelerator again. It’s sort of making sure that the traffic flows at a certain speed.”

The impact of COVID lockdowns on key markets will have wider reaching impacts leading to equipment scarcity in China, hike up of rates and worsening of the traffic jam on transpacific.

The problem will continue to remain after that because there are also labour union disputes in the US waiting in the month of May which historically always leads to slow down at the west coast ports.

Into the Future?  

“We will need more resilient supply chains and that means less concentration on high volume routes. While China-US will still be significantly massive, more smaller trade networks will increase to other countries in Southeast Asia, countries potentially in Africa and South America, who will pick up some of this uncertainty and some of the volume that now gets diverted from the big supply nation. This will be a very gradual process. And again, it doesn’t mean that freight demand from China will decrease now, but I think it might not grow as much anymore.”

Emergence of small trade networks 

The implications of emergence of smaller trade networks. One is you don’t really need these huge vessels on smaller trade networks. There will be an increase in demand for smaller vessels. Secondly, the model of just a few stops in China, then crossing the Pacific, then a few stops in the US, and then going back will, I think, decrease in importance.

And there will be an uptick in more complex networks with more stops and longer turnaround times, further increasing the turnaround times of containers because they just spent more time on the water or an increase in trans shipments. So, for example, more stops in Southeast Asia, then all of this goes into, let’s say, Singapore or Hong Kong in a major hub and then re-export to across, for example, the Pacific. That again, not only increases sort of intraregional traffic, but it also increases the importance of these transit hubs, which will need to build up further capacity to cope with the demand.

And then lastly, I think it will increase the importance of smaller players in the market, and that can be smaller feeder operators and can be smaller who basically pick up this intra-regional traffic or even the transpacific traffic. But that doesn’t start from the big hubs, depending on, I guess, the network model of the carrier.

Pre-pandemic times, supply chain was all about efficient prices and just in time delivery model to make more profits.

Rising Oil prices 

The rising oil prices are bound to have a limited impact on containerized trade in the short run. But generally high oil prices hit hard when the freight rates are very low. Currently, when the freight rates are astronomically high for the past two years (for instance, $10,000 for a 40 ft high cube from China to the US) the impact of a fuel prices hike will not have a large impact on the short term. What remains to be seen in future is how the war pans out in the future and how the supply chain builds resilience in the end.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

Air Freight Market Update

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Many freight forwarders are showing a continued growth trajectory for air freight shipping. Perhaps it is a sign of the times, as shippers are continuing to use different strategies to work around persistent and significant supply chain disruption. To keep high-priority shipments moving, shippers have, at times, been choosing air over ocean in recent years.

However, overall demand for air freight dropped slightly in January this year, which may have shippers wondering – does this mean we may start to see demand and capacity levels regulate? Will air freight no longer be as necessary this year? The short answer is no, not anytime soon. In fact, demand for air freight is forecast to increase this year amidst significant capacity constraints and continued high depend for goods along with the need for inventory replenishment. While demand did drop early 2022, air freight will continue to be a key strategy for shippers.


 

For Many, A New and Necessary Strategy

A January 2022 C.H. Robinson customer research study confirmed that a significant number of shippers are using new strategies to manage through continued disruption, which has included a shift of more freight from ocean to air. Specifically, 52% leveraged new modes, ports, or trade lanes during the pandemic that they plan to continue using in 2022. And, over a quarter of shippers (28%) say that a top strategy was transporting freight by air that had previously been by ocean.

Interestingly, many have said shifting strategies has been a silver lining to the pandemic, with 44% of shippers reporting that one of the positive outcomes of the past year and a half is that they used new transportation strategies they hadn’t in the past, creating more choices for their business.

We continue to see interest from our customers in charter flights and ocean-to-air conversions, especially for moving high-priority freight such as we did for a customer moving emergency COVID-19 test kits when Omicron surged in January. Additionally, high tech and heavy industries such as automotive have leaned on air freight to help catch up with demand and mitigate high levels of disruption.

An Alternative to Ocean Port Congestion

Continued uncertainty in ocean shipping is likely to continue motivating ocean-to-air conversions. Port congestion is still causing significant delays, with vessels sitting at anchor for days waiting to berth. Global schedule reliability is at its lowest recorded level since 2011.

We’re advising shippers to consider the estimated average delays in vessel schedules (7-30 days depending on the port) and add them to the overall expected transit time to ensure proper planning to meet delivery schedules. In addition, long anchor times outside U.S. ports will cause vessels to be late on their return to Asia.

While the ongoing congestion at the Ports of Long Beach and Los Angeles, specifically, has resolved a bit in recent weeks, inventory is still backed up in transit from trans-Pacific routes. Additionally, trans-Pacific routes coming from China will continue to operate at a high level of variability due to stringent COVID-19 protocols, leaving shipments vulnerable to more delays.

In general, to help mitigate these issues, we’re advising shippers to move ocean freight two to three months in advance of normal timelines as opposed to the traditional 4-5 weeks. But, in cases where that isn’t possible, air freight can be a helpful alternative to keep shipments moving.

Latest Air Market Trends

As shippers consider air, it’s important to stay updated on trends that will affect capacity and pricing. While recovery times at airports remain elevated relative to pre-COVID-19 conditions, there are fewer extreme delays. However, throughout March and into Q2, global demand for air freight is expected to creep up and congestion will likely return.

Globally, the return of passenger flights has been slow and inconsistent. Surges in the COVID-19 Omicron variant continue, and markets with stricter policies are putting downward pressure on air capacity. That said, lowering of travel restrictions in some key markets may lead to capacity additions. It’s also important to consider using surface transportation when an outbreak arises, with past unforeseen shutdowns, C.H. Robinson has helped multiple companies shift their freight to another airport via truckload to keep their freight moving.

Tips for Next Steps

Overall, as shippers continue trying to navigate disruption and decide how best to move freight, here are some of the most impactful ways we’re seeing them find success:

-Seek creative solutions – Consider what different modes, trade lanes, or inland transportation strategies can keep shipments moving. It might be something new.

-Use information and technology – Find tools that provide timely market updates, visibility into shipments, and the predictability needed to know when to adjust.

-Closely communicate and collaborate with supply chain partners – Especially in this kind of market, it’s good to have a partner that can provide a range of options from global forwarding to surface transportation to customs and more. Working closely together, you and can better understand challenges coming from all sides be able to quickly adapt to changing circumstances.

To help stay updated on market trends and how they will impact capacity and pricing, check out the monthly updates on our Global Freight Market Insights page.

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Archives, Global Trade Daily, News

Global aircraft charter specialist Chapman Freeborn Airchartering has appointed NAQEL Express as its exclusive partner in the Kingdom of Saudi Arabia.

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NAQEL Express, as well as Chapman Freeborn, are both well-respected companies in the aviation industry. This partnership will enable clients to receive a complete end-to-end solution, delivering an entire range of logistics covering all industries. The collaboration will strengthen both partners’ presence and coverage in the Kingdom of Saudi Arabia as well as support the Kingdom across multiple industry verticals.

Neil Dursley, Chapman Freeborn Chief Commercial Officer Cargo comments:

“We believe that this new strategic partnership will allow us to grow and develop our offering to our global clients and suppliers. Chapman Freeborn has almost five decades of experience within the air charter industry globally, this new partnership with NAQEL will allow us to service our clients’ needs far more effectively and efficiently, now more than ever.

The combined strength of Chapman Freeborn, its parent company Avia Solutions Group, and NAQEL Express will give existing and new potential clients in the Kingdom a fantastic service offering. Capabilities include access to our family members’ fleets of both passenger and freighter assets globally and in the region.

Chapman Freeborn has decades of experience in the Middle East Region and neighbouring countries and has supported missions in many challenging environments for many years and continues today with innovative solutions to support our clients.”

Michael Harradine, NAQEL Express Director, Global Freight Forwarding Division says:

“NAQEL enables the world to do business in Saudi Arabia with simplicity and transparency. The new partnership with Chapman Freeborn enhances our offerings.

This strategic partnership gives our clients within Saudi Arabia a direct access to the vast cargo air charter, passenger charter, and on-board courier capabilities of Chapman Freeborn.

Now there will be direct control with transparency for the fulfilment of air charter needs of global and local firms in Saudi Arabia.

NAQEL Express is one of a select group of firms operating as Authorized Economic Operator (AEO) for Saudi Customs.

We are also the leading and largest overland express carrier with the largest reach among any express carriers in KSA.

NAQEL is a key player in building transparent connectivity between KSA and its global economic partners, as part of Saudi Arabia’s VISION 2030.

NAQEL is also a committed leader in developing its people by enhancing leadership (Future Leaders Program) and business management skills”.

__________________________________________________

About Chapman Freeborn:

The Chapman Freeborn group was established in the UK in 1973. The company has offices worldwide including North America, Europe, Africa, Russia, Asia, and Australia. In the cargo market, Chapman Freeborn Airchartering specialises in the charter and lease of aircraft for a wide-ranging customer base, including freight forwarders, multinational corporations, governments, humanitarian agencies, and a host of industries around the globe.

In addition to freight services, Chapman Freeborn offers specialist passenger services including private jet charters for executive travel and large aircraft for crew rotations and international group travel. As well as on-board courier services. Chapman Freeborn is a family member of Avia Solutions Group, a leading global aerospace services group with almost 100 offices and production stations providing aviation services and solutions worldwide.

Avia Solutions Group unites a team of more than 7,000 professionals, providing state-of-the-art solutions to the aviation industry and beyond.

For more information, please visit www.chapmanfreeborn.aero / www.aviasg.com

About NAQEL Express

NAQEL Express’s journey started as Hala Express in 1993 with 150 vehicles. In 2005, NAQEL Express was born as a joint venture between Saudi Post and Hala Express.

NAQEL Express is providing seamless end-to-end logistics solutions for most industrial sectors in the Kingdom of Saudi Arabia.

Being the largest logistics network in the Kingdom, with 5000+ employees and 4000+ vehicles, they serve the remotest locations and deliver to both businesses and individuals.

They offer door-to-door air and sea freight services from the rest of the world into Saudi Arabia and Middle Eastern countries.

Their freight service desk based out of the United States, Europe, United Kingdom, China, India, and Egypt ensures that you have a smooth and hassle-free experience in importing your goods from around the world.

NAQEL Express clears your shipments based on their multi-modal presence at the key airports, land ports, and seaports. They have own facilities at all the three key airports – Riyadh, Jeddah, and Dammam.

They are the first logistics company in the Kingdom that received a customs clearance license. They clear your shipments as well as deliver them to your doorstep.

NAQEL Express has now expanded their operations to 16 countries – Saudi Arabia, UAE, Kuwait, Oman, Bahrain, Jordan, Egypt, Lebanon, UK, Turkey, China & Hong Kong, USA, Germany, India, Russia, and Qatar. This presence helps their vision of uniting across borders and horizons a reality.

They are further expanding in line with their mission of giving you access to new markets and removing distance as a constraint for your business operations.

For more information, please visit www.naqelexpress.com

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Archives, Global Logistics, Global Trade Daily, News

Traxens Raises 23M€ and Acquires NEXT4 To Become the World Leader of Shipping Container Tracking

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TRAXENS, the leading smart-container service provider for
the global supply chain industry, announced today a new financing round of €23 million ($25+ million) from the company’s existing shareholders. The funds will be used to fuel Traxens’ international expansion starting with the acquisition of NEXT4, a fast-growing French supplier of removable and reusable shipping container trackers.

Traxens’ Internet-of-Things (IoT) solution is based on a breakthrough technology that enables access to the most comprehensive, precise and timely data for managing assets in transit anywhere in the world. In addition to tracking container geolocation, it detects shocks and monitors temperature and humidity, as well as the open-or-closed status of container doors.

The acquisition, confirmed today, will allow Traxens to streamline and merge NEXT4’s offering into its suite of solutions, providing customers with the best of both solutions — including shipments scheduling, collaborative risk management, and analysis reports. The newly consolidated company is now the market frontrunner in providing overseas cargo visibility and offers Traxens’ customers a technological edge in container tracking solutions.

“Integrating NEXT4 into our company dramatically increases our ability to serve the growing needs of our customers as they digitalize their business processes, while adding freight visibility, cargo security and goods integrity,” said Traxens CEO David Marchand.

Founded in Toulouse in 2018, NEXT4 provides trackers that can be attached to containers from point of origin to the final destination. This provides freight forwarders with a premium tracking solution and gives customers 24/7, real-time data on the status and location of their goods via sensors inside the containers.

Tens of thousands of NEXT4 trackers have been adopted by leading freight forwarders such as Bolloré Logistics and DB Schenker. Airlines have also approved the latest version of its trackers, a smaller and more versatile device, that allows them to be adapted to the needs of the air freight industry.

The €23 million round of financing follows a Series C funding round of approximately €20M ($22.7M) raised in 2019. This new acquisition will enable the consolidated French company to continue deploying its smart-containers worldwide, while building new relationships with major players in the supply chain, including companies focused on container leasing, insurance and
transport management systems.

As it moves into new markets in the U.S., South America and Asia, Traxens will also use the funding to further expand its portfolio of solutions to address the increasing needs of freight forwarders and beneficial cargo owners (BCO) for supply chain transparency.

“Joining the Traxens group enables us to market our innovative solution on an internationalNEXT4 will operate as a wholly-owned subsidiary of Traxens with offices in Toulouse. In addition
to remaining as CEO of NEXT4, Rosemont will serve as Traxens’ chief marketing officer. scale and to jointly develop new products and solutions with their team,” said NEXT4 CEO and founder Cédric Rosemont. “Our highly complementary solutions will meet the current and future challenges of shippers and their logistics providers. This means NEXT4’s customers also can benefit from Traxens’ solutions, which are now being widely deployed by container owners.”

NEXT4 will operate as a wholly-owned subsidiary of Traxens with offices in Toulouse. In addition to remaining as CEO of NEXT4, Rosemont will serve as Traxens’ chief marketing officer.

Both CEOs will be available for interviews about this strategic merger at the TPMTECH (Feb.24-25) and TPM22 (Feb. 27-March 2) trade shows in Long Beach, Calif.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

CEVA LOGISTICS ADDS SUSTAINABLE AIR TRANSPORT TO LOGISTICS SOLUTIONS

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Sustainability continues to underscore operations and initiatives in logistics. Last year, the industry saw even more attention on reducing carbon emissions, specifically for airfreight transportation–from commercial airliners to leading logistics companies. As seen with the maritime industry with IMO 2020, reducing the overall carbon footprint is the primary goal, but the logistics industry is taking a piecemeal approach to cover all bases. Notable companies linking arms to fight the issue of carbon emissions in the airfreight logistics sector include DHL, Yusen Logistics, Bollore Logistics and, of course, CEVA Logistics. In April 2021, CEVA Logistics announced its position on the issue through the joining of United Airlines’ Eco-Skies Alliance as an official partner (along with the other aforementioned companies). 

Known for being the world’s leading supply chain management organization headquartered in Marseille, France, CEVA is no stranger to stepping up in the name of sustainability. As part of parent company CMA CGM Group’s mission, CEVA is committed to acting for people, the planet and responsible trade–and that’s exactly what the logistics company is accomplishing through initiatives such as switching to sustainable aviation fuel (SAF), for example. Not only does this move support the Group’s mission, but it also supports collaboration along the supply chain. 

“One long-term benefit and advantage of SAF is that it is a concrete opportunity for shippers, freight forwarders and carriers to work together to improve the air freight industry,” explains Peter Penseel, chief operating officer of Air Freight at CEVA Logistics. “This type of collaboration can extend beyond SAF and environmental topics to ones like safety. As an example, we were recently the first company to receive IATA’s new CEIV Lithium Certification for the safe air transport of lithium batteries, so we’re encouraging other industry participants, whether freight forwarders, ground handlers, or carriers, to support this important safety topic as well.”

The leaders behind the CEVA mission capitalize on what can be done now to reduce problems for the future. This proactive approach differentiates the business from competitors while creating a competitive advantage for customers. This serves as a primary driver behind the CMA CGM Group’s goal of becoming carbon neutral by 2050.

“The Group aims at becoming carbon-neutral by 2050 and is significantly investing in research and development to help the emergence of future energy sources and technologies to reduce the impact of transport and logistics on the planet,” Penseel adds. “Encouraging the use of SAF in air transport is a direct outflow of this corporate commitment. Whether or not SAF is the long-term answer in air freight logistics, CEVA is taking tangible action today, with an eye on the solutions of tomorrow.”

What some logistics organizations might misunderstand that CEVA does not is the critical blending of customer needs and environmental needs. And in the modern world, it seems all players in the logistics arena are feeling the pressure to support sustainability more now than ever.

“Reducing emissions in the supply chain requires alignment with customers,” said Penseel. “We work alongside them to offer and encourage the right products and services, including alternative fuel options. We must embark on this journey together with a common vision and roadmap. To that end, we are a part of the Sustainable Air Freight Alliance (SAFA), which advocates for responsible transportation. The organization is made up of shipping companies, airlines and freight forwarders that are committed to measuring and reducing their carbon dioxide emissions.”

These changes do not come without their own set of unique challenges, however. Penseel adds that the current infrastructure landscape poses specific roadblocks that could potentially impede progress in the pursuit of carbon neutrality, warning that careful planning and collaboration along each step of the shipping process is critical and shouldn’t be compromised. 

“As an air freight industry, we need to be conscious of the production and infrastructure capacities for SAF,” he says. “As we ramp up the use of this alternative fuel, we need to ensure that we can deliver on our commitments. If the industry offers more SAF options, we need to work closely with the entire upstream environment to ensure the needed supply and infrastructure will be there to meet the demand we as an industry are creating.

“Estimating carbon footprint and planning accordingly is the first step toward a more sustainable supply chain. For example, we offer an eco-calculator on our website and through our MyCEVA digital booking platform to estimate the logistics carbon footprint of a shipment via ocean, air, or ground.”

Looking to the future, CEVA has more carbon-neutral tricks up its sleeve. Penseel confirmed the organization is currently discussing additional SAF options and programs with numerous air carriers to confront and resolve near-term environmental concerns. 

2022 has officially greeted the industry with CEVA taking it by the horns with customer and environmental needs at the forefront of its dedicated solutions. The organization capped off 2021 with its latest acquisition of Ingram Micro’s Commerce & Lifestyle Services business, representing another feather in the CMA CGM Group’s hat in the ecommerce planning and omnichannel sectors, further positioning them as leaders in all things shipping and supporting the goal of becoming a name among the top five global third-party logistics players. 

“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group,” Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said in a December release. “After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s top four in contract logistics.”

Customers can continue to look forward to maximizing their opportunities in meeting their own customer needs while playing an active role in contributing to a cleaner, greener and more eco-friendly way of conducting business. 

“We look to help our customers make the best decisions when planning their logistics and freight transport operations to reduce environmental impact as they balance the business and timing needs of their supply chain processes and shipments,” Penseel concludes. 

To learn more about CEVA Logistics, please visit cevalogistics.com.

_______________________________________________________________________

Peter Penseel is chief operating officer at CEVA Logistics.

CEIV
Air Cargo, Archives, Global Trade Daily, News

Dachser Air Receives CEIV Pharma Certification Expanding Companies Network Services Globally

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In March 2021, Dachser’s fifth location, Shanghai, is to receive the Center of Excellence for Independent Validators in Pharmaceutical Logistics certification (CEIV Pharma) that will expand the company’s network services for its customers, specifically in the life sciences and healthcare (LSH) sectors. Following the Frankfurt, Atlanta, Mumbai, and Hyderabad locations, Shanghai is their most recent CEIV certification from the International Air Transport Association (IATA).

The CEIV Pharma certification ensures compliance to international standards including European Union and World Health Organization Good Distribution Practices (GDP), United States Pharmacopeia, and IATA temperature control regulations. The standards insist on secure, compliant, and efficient air-freight services, which Dachser successfully displayed.

“At Dachser, the safe and efficient transportation of pharma products is a key priority for us, and our CEIV Pharma certified locations in Germany, the US and Asia enables us to serve our customers in the key regions around the world,” says Ralph Riehl, Managing Director Americas at Dachser Air & Sea Logistics. “With this latest certification, we are demonstrating our continued emphasis on constantly enhancing our service quality as well as showcasing we are a reliable partner for transporting vital and temperature-sensitive products.”

In 2018, Dachser received its first CEIV Pharma certification for their Frankfurt branch in Germany. By 2019, their United States branch in Atlanta and two Indian branches – Mumbai and Hyderabad, had received the CEIV Pharma certificates. The certificates highlight Dachser’s commitment to LSH logistics excellence in delivering high-value, time-sensitive, temperature-controlled products leveraged by  Dachser’s global network of speed, consistency, and efficacy.

“A resilient and highly efficient transport network, tailored to the specific needs of the LSH industry, has never been more crucial than today. Dachser is committed to superior service and further confirms our exceptional competence in the handling of sensitive life-saving pharmaceutical products based on the highest international standards quality standards,” added Mr. Riehl.

Responding to the globally growing demand, Dachser invested its services in the field of life sciences and healthcare to substantially provide efficient air-freight services globally leading to CEIV Pharma certified facilities. With this certification, Dachser Shanghai now joins a limited number of logistics companies in Asia to be recognized by IATA.

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3pls, Archives, Global Logistics, Global Trade Daily

Global Supply Chain Management: Developing Successful Relationships in Freight and Logistics

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The Covid-19 Pandemic has increased in global supply chains:

-Uncertainty

-Increased Costs

-Delays

-Reduced Capacity

-Limited Negotiation Leverage for Shippers

When freight is managed as a “commodity” there is little opportunity for long-term, more successful and profitable relationships in the purchasing of global transportation services between shippers of cargo, service providers and carriers.

Most shippers with international footprints work directly with carrier options, NVOCC’s, 3PL’s or forwarders/brokers. These relationships, as we enter the second year of the Covid-19 Pandemic are increasingly critical aspects of freight, logistics and overall supply chain management success.

Uncertainty in the freight markets has created a disruption, confusion, and disharmony in the trade lanes of the world, in particular, to and from the USA/China. Air and Ocean Freight Pricing is up in multiples of 3-8x average pricing over the 2017-2019 periods.

There are also delays and a significant lack of carrier capacity, chassis and trucking capabilities. This has impacted both imports and exports as well as certain domestic movements.

While the biggest impact is on international trade lanes, domestic freight is up and has caused capacity and pricing increase, as well.

The most impactful frustration is with inbound air and ocean freight from China to North America. The concerns start with the “demand planning” and the need to substantially increase lead times, say normally at 8-12 weeks to 20-30 weeks out.

Importers need to be prepared for delays in moving the freight as much as 30-60 days. Carriers have now come up with “Premium Pricing” best described as “If you want your freight to move … this is the price you will have to pay”. This is causing ocean freight pricing to rise into the $8-15,000 level per 40’ Container from China to the West Coast USA.

Ocean Freight which has been typically guided by “annual contracts” is now mainly controlled by “spot market pricing”. Another leading indicator of a very tight market condition.

Airfreight pricing could as high as $10.00 per kilo., where normally $2.50 per kilo would be the market rates.

The market volatility is likely to extend into 2022 so we caution all supply chain managers to properly prepare for more difficult times and seek numerous options.

With all the doom and gloom, there are a number of measures we can take to mitigate the impact and

When we have “sustainable relationships” we capitalize on the following:

Better working relationships between shippers, service providers, and carriers

We all want to work in an atmosphere in global trade where we would describe our relationships in the global supply chain as excellent. This allows for less stress and overall better results.

Quality relationships create the ability for better planning and management by more informed and better-anticipated expectations.

Ability to work through Pandemic Disruption.

Carriers and Service Providers are more likely to accommodate existing clients where a favorable working relationship is present. Since there is limited capacity, the industry prioritizes clients over prospects.

Longer tenured relationships

Changing service providers and carriers frequently is disruptive and costly and never a preferred option. Everyone engaged in the supply chain does better in long-term relationships.

Reduction of risk and spend in the global supply chain

When the relationships work well we always see a direct relationship to the reduction of costs and risks as goods move through the supply chain cycle both domestically and internationally

Keep in mind that there are a number of options from freight consolidation, drawbacks, FTZ’s … that these relationships can bring to value in global supply chains.

Consistency in pricing and service agreements

If we always have “spikes” and “steep” changes in our business models, no one will be happy in your company and the difficulty to manage operational issues will be very difficult all the time.

The preference always is to have a smooth gliding more rhythmic path in the business model to follow so changes are not large or small but even out on a more consistent basis.

Less “angst” in “day to day” business dealings

The uncertainty is global shipping has caused much frustration, which has led to high degrees of angst.

Angst causes stress. Stress causes anger. Anger causes bad decisions. Bad decisions usually produce bad results. Eliminate angst and have more success.

Ability to work through problems and bringing quicker resolve to issues at hand

Global supply chain managers face challenges every day. Even in the best-managed supply chains, problems will occur daily. They need to be resolved quickly. Good working relationships “open the door” to quick, swift and comprehensive resolution.

Access to better security and trade compliance initiatives

Every international supply chain requires due diligence, reasonable care and supervision and control to meet various government security and trade compliance regulatory requirements.  Better working relationships foster a more secure and compliant environment to ship freight in.

Better access to and utilization of technology resources

Technology will always enhance business relationships with all the benefits of expediency, efficiency, exactness and information flow.

Technology is becoming one of the most important value-adds in business relationships in the global supply chain:

-Enhance efficiency in information flow

-Enhance correctness in information

-Allows information flow to be the conduit for more informed decision-making

-Creates KPI’s (key performance indicators) that manage accountability between the multiple parties in international transactions

-Becomes a management tool to increase overall performance, lower costs and reduce risk.

Creating a “partnership” approach

We cannot emphasize enough the importance of establishing a “mindset” between all the parties to approach matters on a “partnership” basis.  This is the best course of action that achieves “trust and confidence” between shippers, service providers, and carriers.

Trust and confidence become “hallmarks” and allows all parties to both compromise and benefit from all the actions that impact one another in the day-to-day movement of freight throughout the world.

The following key factors create a path to better relationships and sustainability.

Transparency

Share all the information necessary to get the job done right. Eliminate a “mindset” of clandestine behavior, working through “secret passageways or working in the shadows” mentality.

Put up all the data. Shippers outline clear expectations. Service providers and carriers outline clear capabilities.

A no non-sense, direct, no BS approach works best.

Valuing Favored Incumbents

Always be loyal to companies that have serviced you well. Loyalty is what you expect from your customers, so give it to your vendors and suppliers, when well deserved.

If you need to conduct an RFP (Request for Proposal) and bring in competition always give some advantage to a favored incumbent.

Be Open and Honest, Consistently

The value of being open falls in line with being transparent, but also adds on an element of “frankness, truthfulness and honesty”.  People trust those who are honest period.

When you are more honest, you can get more done as people better respect you and are more open to participate and go the extra yard to get better results.

Be Creative

The challenges of global trade can be daunting. Every approach will require a potentially different and maybe even a new revolutionary approach.

Creativity is a necessary element of being able to compete successfully, as creativity opens the door for problem resolution, progressive options, aggressive tactics and at times advanced/rebellious/extreme/mutinous behaviors.

Risk Management in assuring “Insurance” is Addressed

Claims are inevitable if you ship goods internationally. If you want to see a “relationship, go south quickly” have an unresolved claim.  Liability for loss and damage in global trade is an area of major concern.

All parties in the supply chain shipper, service provider and carrier need to know where their risk begins and ends and if there is a claim, where indemnification will originate.

When this is left unclear, it creates frustration between the parties and eventually a loss of confidence, which leads to a breakdown in any opportunity for sustainability between the parties.

Address insurance concerns proactively, comprehensively and with transparency and you will mitigate future relationship issues.

Summary

Quality relationships drive sustainability, which is always a preferred option in global trade.

The big concern is the impact all of this will have on both industrial and consumer pricing, which has and is likely to increase pricing even more than it has already with inflation raising its ugly head.

Comprehensive planning, making better more informed decisions and developing quality options and relationships create a blueprint for mitigating these supply chain challenges now and down the road.

____________________________________________________________

Thomas A. Cook is a 30 year seasoned veteran of global trade and Managing Director of Blue Tiger International, based in New York, LA and West Palm Beach, Florida.

The author of 19 books on international business, two best business sellers. Graduate of NYS Maritime Academy with an undergraduate and graduate degree in marine transportation and business management.

Tom has a worldwide presence through over 300 agents in every major city along with an array of transportation providers and solutions.

Tom works with a number of Associations providing “value add” to their membership services and enhancing their overall reach into global sourcing and in export sales management.

He can be reached at tomcook@bluetigerintl.com or 516-359-6232.

Cainiao
Archives, Global Trade Daily, Imports/Exports

Cainiao Smart Logistics Announces New Container Booking Service

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Cainiao Smart Logistics announced the launching of a new container booking service this week. Known as an extension of Alibaba Group, Cainiao’s booking service sets the bar higher for a quick turnaround in booking confirmations, maximizing cost savings, and access to a wider global network of ports and participating countries.

“In the face of the current global container shortage and surging shipping prices, Cainiao is committed to leveraging our technology and logistics ecosystem to provide a one-stop port-to-port shipping solution for exporters and importers,” says James Zhao, General Manager of Cainiao Global Supply Chain.

According to the information released, merchants can expect a booking confirmation just two business days following order placement. Considering the usual turnaround for booking can range from a week to a month, this significantly expedites the process for the industry. Both air and sea freight bookings will be available through the service along with competitive compensation in the event of booking delays and/or missing a departure date.

More than 200 ports in 50 countries are connected through the service including China ports in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou, Yiwu, and more. Additionally, those that utilize the new booking service can enjoy a significant price decrease on a cross-border port-to-port shipping fee, as Cainiao’s fee is reported to be up to 40 percent less than market rates, offsetting the market increase in shipping costs due to the container shortage.

According to the China Container Industry Association (CCIA), the increased turnaround time has some waiting up to 100 days versus 60 days for containers due to the capacity cuts in international markets, specifically in the U.S. and Europe. Pair this with the spike in freight costs, there’s no doubt this new booking service will serve as a reliable solution for the industry.

“By working closely with airlines and cargo companies, we aim to safeguard the entire cross border line haul network and instill greater stability into sea and air freight shipping,” Zhao concluded.

3PLs
America's Leading 3PLs, Archives, Features, Global Trade Daily

GLOBAL TRADE’S TOP 3PLs OF 2020

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We’ve been saying it for years: The world is becoming an increasingly global place. We can get nearly anything on Earth in less than a few days, but someone has to get it to us. That’s where third-party logistics comes into play.

This year has thus far been a year unlike any other, thanks to the COVID-19 pandemic. With supply shortages and more people shopping from home out of safety concerns, we’ve relied heavily upon third-party logistics (3PLs) to bring us much-needed supplies. In fact, in an economy where many businesses are struggling to survive, many 3PLs are holding their own due to the coronavirus.

But it’s not enough to just be a 3PL—even during a pandemic. Logistics customers are demanding more from their 3PLs. In a world of Amazon Prime, they want their shipments to arrive faster, and for less money. They want to manage their inventory with the touch of a button, right from their smart device. They want personalized service that is tailored to their individual business needs, and to feel like even though they are one of many customers, they are important, no matter how big or small their account is.

The following 3PLs embody all of the characteristics mentioned above. From the smallest family-owned establishment to the largest global providers, these 50 companies work tirelessly to ensure the best customer experience possible, from start to finish.

A.N. Deringer

The largest, privately-held customs broker in North America, A.N. Deringer was founded in 1919 by Alfred Neel Deringer. For more than 100 years, the St. Albans, Vermont-based company has offered services ranging from customs brokerage to warehousing, distribution and customs compliance consulting. A.N. Deringer ranks fifth overall for the quantity of entries field, and has won the “Best Places to Work in Vermont” designation from 2017-2019.

Transamerica Express

The group-member-owned 3PL has more than 40 years of combined experience in the industry. With over 120,000 carriers under contract, Transamerica Express can offer customizable solutions to everyone from small businesses to larger, Fortune 500 companies. The rapidly growing concern was ranked highest in Inc.’s 500 “Nation’s Fastest-Growing Companies” list in 2019 and 2020.

Sunset Transportation

Founded in 1989 by Jim Williams, Sunset Transportation’s flexible business model serves mid-market businesses with a variety of logistics solutions. The company recently celebrated its 30th year by instating a new, cross-border Mexico/U.S. solutions program and upgrading to a new 45,000-square-foot headquarters. Sunset Transportation was ranked No. 8 on Inbound Logistics’ Top 10 3PL Providers list in 2019, their second time making the top ten.

ODW Logistics

Founded as Ohio Distribution Warehouse Corp. in 1971 by Bob Ness and John Berend, the company started out serving only the Ohio area. ODW Logistics has since expanded beyond the Buckeye State and across the nation, offering supply chain solutions for hundreds of companies of all sizes.

FW Logistics

FW Logistics began in 1949 as a food grade storage facility. Today, the 3PL offers a full range of logistics services, including warehousing, trucking, logistics and fulfillment. Specializing in everything from dry storage to hazmat storage, the company boasts 7 million square feet of warehousing strategically located throughout the United States.

R2 Logistics

R2 Logistics prides itself on offering real-time visibility and a full suite of logistics solutions. The company has no automated phones, and customers are easily put in contact with account executives and support staff. R2 Logistics uses cutting-edge logistics technology to streamline processes and has a strong network of preferred partners to help ensure customers are getting the services they need, when they need them.

Dependable Global Express (DGX)

DGX consists of five integrated divisions which work harmoniously as a single shipping resource. Offering customized freight solutions to their customers, DGX can handle every step of your 3PL journey in one convenient package. They use state-of-the-art software to present customers with comprehensive reporting and real-time shipment tracking.

Flat World Global Solutions

Founded in 2006, Flat World Global Solutions offers customizable, contract-free solutions to clients of all sizes. Their customer service and cutting-edge technology keep Flat World Global Solutions lean, allowing them to grow quickly and maintain a high client retention rate—even without contracts. Flat World Global Solutions earned the distinction of Vendor of the Year from a top-10 client, and they have won a St. Louis Post Dispatch “Top Places to Work” designation in both 2018 and 2019.

McLane Global

With facilities nationwide, Houston, Texas-based McLane Global has been offering food grade logistics and transportation for more than 120 years. Today, McLane Global provides full 3PL services from manufacturing through last-mile delivery. McLane Global does not believe in a one size fits all approach, and each customer receives services tailored to their individual needs.

MD Logistics

Focusing on the life-science pharmaceuticals and retail and consumer goods sectors, MD Logistics offers highly specialized service to customers under these umbrellas. Founded in 1996 by Dave Kiebach and Mark Sell, MD Logistics works with the customer to customize services to their unique needs. MD Logistics offers Foreign Trade Zone services within a cGMP temperature-controlled environment, as well as dedicated or shared call center services and inventory tracking services that are cutting edge.

Kenco Logistics

The largest, woman-owned logistics company in the U.S., Kenco Logistics was founded in 1950. Today, it is a fully integrated 3PL provider, with more than 200 clients, 90 distribution facilities, and 30 million square feet of space. Kenco Logistics prides itself on customer service, which despite its size remains as personalized as a small operation. Kenco Logistics is the winner of a General Mills Supplier Diversity Award, as well as a Top Woman-Owned Transportation Company Award by Women in Trucking.


FLS Transportation Services

Founded in 1987, FLS Transportation has grown from just a few employees to the largest freight brokerage firm in Canada. The company differentiates itself from the competition by offering 3x support. This ensures customers have one point of contract and three support teams backing them. They also boast a .001 percent claims rate, a testament to their rigorous employee training program. FLS Transportation Service offers a full suite of logistics management products that can be customized to meet their customers’ individual needs.

Choptank Transport, Inc.

A full-service 3PL, Preston, Maryland-based Choptank Transport, Inc. serves North American and many other locations around the world. Their cutting-edge transportation management system and award-winning training program ensure their clients receive the highest level of customer service. Choptank Transportation also prides itself on keeping current with freight laws, so that they can advise customers about the transportation of their cargo in record time.

Holman Logistics

Seattle, Washington-based Holman Logistics offers food-grade warehousing, paper product manufacturing logistics support and more. They work with such clients as Hills Pet Nutrition and Kimberly Clark, offering tailored solutions to clients of all sizes. Holman Logistics is the recipient of the 2018 Operational Excellence Award from General Electric, and Kimberly Clark’s 2014 Service Excellence Award.

Nolan Transportation Group

Founded in 2005, Nolan Transportation Group serves more than 7,000 North American customers, with over 30,000 independent transportation companies comprising their network. The company treats all of its clients as partners and works with them to achieve their goals. Their recent success stories include assisting Crate & Barrel with their domestic over-the-road supply chain, a project which earned them accolades from the retailer’s director of Global Transportation. Says Brad Voelpel of hiring Nolan Transportation Group: “I can stand here today saying it has been one of the best moves we have made within our domestic network. The NTG team’s entire focus is on customer service, providing visibility on every single move while ensuring we remain competitive in the marketplace.”

Romark Logistics

Founded in 1954, Romark Logistics serves many pharmaceutical, retail, food and beverage customers across the globe. Providing a full range of B2B and B2C options, Romark Logistics works with their customers to provide customized 3PL solutions at a competitive cost. Their tagline “Personalized Service … Always” is a guiding force behind the company’s operations, inspiring them to strive harder to ensure customer satisfaction in everything they do.

Transplace

Frisco, Texas-based Transplace is the largest managed transportation services provider in North America. Transplace prides itself at being at the forefront of TMS technology, utilizing their own proprietary cloud-based TMS system as well as AI and machine learning and predictive analytics to increase efficiency and ensure customer satisfaction. They work with their clients, not just at start up but throughout the entire relationship to constantly improve and streamline processes, saving the customer valuable time and money.

ALOM

A WBENC Certified Woman-Owned Business, ALOM has been providing third-party logistics for 23 years. Heavily focused on customer service, ALOM provides each client a dedicated account manager who oversees all aspects of their accounts, including inventory, BOM and logistics. ALOM has 19 locations around the world and is the winner of the 2020 MultiChannel Merchant Top 3PL Award as well as the 2019 SDCE Supply Chain Green Award.

Tucker Company Worldwide

Founded in 1961 by Jacob Tucker, the company believes what sets it apart is their people. With many clients having been with Tucker for one or two generations, it’s safe to say customers agree. The company adheres to strict operational and safety compliance standards, customizing their services to the unique needs of each customer. They also offer 100 percent visibility at all times, allowing modifications to their TMS that addresses those needs. Up next, Tucker Company Worldwide plans to debut a new, self-service customer portal to further enhance the customer experience, and the company regularly reviews client accounts upon request to ensure satisfaction.

Werner Enterprises

One of the five largest truckload carriers in the U.S., Werner Enterprises was founded in 1961 as a single truck operation. Based in Omaha, Nebraska, Werner has offices in Canada, Mexico, and China. The company provides services such as dedicated, intermodal, cross border, global services and customs solutions. The company has won numerous awards, including the 2020 Alliance Award from SMC³ and Logistics Management, Food Logistics Top Green Provider Award and Logistics Management’s 2020 Quest for Quality Award.

Knichel Logistics

A WBENC Certified Women’s Business Enterprise and Woman Owned Small Business, this family run company provides services such as intermodal, LTL, full truckload and other specialty services. They pride themselves on highly personalized customer service, providing each client a dedicated account representative and a web-based transportation management system that delivers customized reporting. A 20-year industry veteran, Knichel Logistics CEO Kristy Knichel is the Intermodal Logistics Conference chairperson and is seated on the Board of Directors of the Transportation Intermediaries Association, the premier organization for 3PL professionals in North America and abroad.

GEODIS

The global supply chain operator operates five lines of businesses around the world, including freight forwarding, supply chain optimization, distribution and express, road transport and contract logistics and transportation management. With operations in 67 countries and a worldwide network that spans 120 countries, GEODIS boasts over 41,000 employees around the world.

PLS Logistics Services

Home to the largest flatbed network in North America, PLS Logistics Services offers a full suite of transportation solutions for their clientele. Each client receives a dedicated account executive as their point of contact, and the company provides 24/7 support, transparent tracking options and custom TMS reporting. With both outsourced and managed transportation services, PLS Logistics Services allows clients the flexibility they need to run their supply chain properly.

Dachser USA Air & Sea Logistics Inc.

Dachser USA Air & Sea Logistics Inc. treats its customers as partners, offering customized solutions to suit the individual needs of each business. The U.S. arm of Kempten, Germany-based Dachser can connect with more than 400 locations in nearly 40 countries, making them a dominant presence in many of the major markets across the globe. The company’s own Dachser IT program provides industry-leading, in-house solutions for clients of all sizes.

Americold

Americold prides itself on being the only 3PL to offer automated picking in cold storage with multiple tenants. Their use of robots provides on-time, in-full accuracy 99.5 percent of the time, allowing for minimal contact and a pick cycle time of under two hours. Americold has their own proprietary inventory management system, i-3PL Supply Chain Control, which allows customers to manage their inventory from any smart device, from anywhere.

NFI Industries

One of the oldest and largest family owned 3PLs in North America, NFI offers a flat organizational structure that allows the company to work quickly and nimbly. Clients are assigned dedicated account management teams that provide personalized service and continuously look for ways to improve supply-chain efficiency, including the use of robotics and automation in their warehouses. A company that cares about sustainability, NFI Industries operates electric trucks and was one of the first providers to use Class 8 battery-electric Freightliner eCascadias. And NFI uses Kalmar Ottawa Electric T2E Terminal Tractors in its California distribution centers.

Pilot Freight Services

Founded in 1970, Pilot Freight Services credits its 50-year history with always putting the customer first. One of the International Air Transport Association’s “Top 25 Air Forwarders in the World,” Pilot’s domestic and international operations frequently work hand-in-hand to achieve customer solutions. The company is the recipient of numerous awards, including Logistics Management’s Quest for Quality and Top 50 U.S. & Global 3PL designations.

AP Moeller – Maersk

Founded in 1904 as Dampskibsselskabet Svendborg (The Steamship Company Svendborg), today the Danish company Maersk has a dedicated team of 80,000 employees and operates in 130 countries around the globe, including its U.S. headquarters in New Jersey. The integrated transport and logistics company also has a standalone energy division. Maersk offers businesses of all sizes customizable solutions, with services available on all major trade lanes, including air, land, rail and sea. Maersk recently added Eco Delivery, a service that uses biofuel to reduce carbon emissions.

UTXL

Serving North America, UTXL aims to be the “safest, most reliable and cost effective” 3PL provider. The company offers a full suite of services and has been a federally licensed broker for more than two decades. They have provided services for everyone from the smallest of small businesses to Fortune 500 companies. With a focus on “Safety, Service, Systems and Savings,” UTXL offers customers unparalleled customer service.

Phoenix Logistics

A 3PL supplier to government and Tier 1 prime customers, Phoenix Logistics has locations to serve both U.S. coasts located in Arizona and Florida. Phoenix Logistics offers customers real-time, cloud-based tracking for supply-chain management. They work tirelessly to overcome challenges and bring their customers vital delivery infrastructure such as IT, transportation, energy and medical.

C.H. Robinson

One of the world’s largest 3PLs, C.H. Robinson has $20 billion in freight under management and processes 18 million shipments each year. The company serves 119,000 customers and 78,000 contract carriers around the world. C.H. Robinson has its own innovation department, C.H. Robinson Labs, where the company is constantly developing and testing customer solutions to streamline processes that put the customer first.

ArcBest

With more than 13,000 employees, ArcBest offers services ranging from LTL via ABF Freight, ground expedite through Panther Premium Logistics, household moving via U-Pack, and vehicle repair under FleetNet America. The company’s main focus is always the customer, ranging from the smallest operations to the largest and most complicated supply chains. ArcBest was recently named the No. 2 employer in Arkansas by Forbes and Statista Inc.

Global Gateway Logistics

St. Louis, Missouri-based Global Gateway Logistics recently made headlines for delivering more than 2 million pieces of PPE to their local community with the help of global partners, in an effort to stop the spread of the COVID-19. Global Gateway Logistics offers services ranging from international air freight, international ocean, rail transport, ground transport, analysis consulting, hospitality logistics and customs consulting.

Axle Logistics

The Knoxville, Tennessee-based 3PL, which is among the fastest growing in the industry, provides safe, reliable, advanced logistics services for companies throughout North America. Axle Logistics’ freight brokerage and transportation management operations support shipper needs for truckload, less-than truckload (LTL) and intermodal as well as integrated warehousing and distribution services. The 3PL recently expanded its engagement with Trucker Tools, deploying its Smart Capacity predictive freight-matching software. The added services build upon its current use of Trucker Tools load tracking, which has helped Axle increase tracking compliance among truckload carriers from below 30 percent to 80 percent.

PITT OHIO

PITT OHIO, which prides itself on having one of the best safety ratings in the logistics industry, is the recipient of numerous safety awards, including the American Trucking Association’s President Trophy. The family owned company offers services including small package, truckload and LTL, which is the company’s legacy service. PITT OHIO works with their customers to create custom solutions to their logistics challenges, providing quality service every step of the way.

CaseStack

Founded in 1999, CaseStack offers collaborative supply chain management services for CPG’s retailer logistics programs and cloud-based supply management products. CaseStack’s platform works to combine LTL deliveries to reduce shipping costs and improve delivery performance, while their cloud-based program allows CPG companies to manage their accounts, improve forecasting and sourcing, and much more.

Ruan

Founded in 1932 by John Ruan, what started as a gravel hauling company in Des Moines, Iowa, now boasts more than 300 operations nationwide, with 6,000 team members and 10,000 trailers. Placing a high precedent on safety, Ruan was the first transportation company in the U.S. to develop a safety program, and it is their commitment to safety, performance, customer satisfaction, people, improvement and teamwork that drives the company to this day.

Echo Global Logistics

Echo Global Logistics was founded in 2005 with the goal of simplifying transportation management. Its user-friendly, proprietary technology enables vendors, partners and clients to operate more nimbly, adapting to changes with real-time visibility. The company’s expansive coverage allows your merchandise to get to its final destination when it’s needed—no matter the means.

Kane Is Able

Kane Is Able works with consumer goods manufacturers who sell through ecommerce, retailers and grocers to improve supply chain efficiency. The company’s employees work as an extension of your business, helping to ensure that you get the best service for your logistics dollar, round the clock. The company employs Lean and Kaizen methodologies to constantly improve performance, which translates to a better experience for their customers.

Hub Group

Founded by Joyce and Phil Yeager in a “one-room, windowless office,” Hub Group has grown from its modest beginnings to become an award-winning 3PL specializing in customizable multimodal solutions. Hub Group attributes its success to providing the services that its customers need at a fair price. They offer LTL, FTL, expedited, intermodal and international freight services with the goal of long-term growth.

WSI Logistics

WSI Logistics was founded in 1966 in Combined Locks, Wisconsin, with just 30,000 square feet of warehouse space. Today, the company has grown to become one of the largest privately held logistics companies in America, with a network that includes American Warehouse LLC, Warehouse Specialists LLC, Material Logistics & Services LLC (MLS), Fulfillment Specialists of America, Inc. (FSA), LLC & WSI Freight Solutions and 360data. WSI Logistics offers fulfillment, transportation, import/export, warehousing and distribution, contract services and 3PL.

Logistics Plus

One of the fastest growing privately owned logistics companies in the world, Logistics Plus has annual global sales of over $300 million, with 450 employees spanning 28 countries across the globe. Logistics Plus offers services ranging from LTL, freight forwarding, truckload, warehousing and fulfillment, global trade compliance, project cargo, import/export and customs brokerage. Despite their rapid growth, Logistics Plus is still small enough to meet their customers’ unique logistics needs but big enough to solve the most complex of logistics challenges.

Mallory Alexander International Logistics

Mallory Alexander International Logistics is a full-service logistics provider offering customers over 94 years of experience in the logistics industry. The company knows that it plays a vital role in the supply chain of their customers, and it strives to ensure the accuracy that will keep their clients’ businesses running smoothly. Mallory Alexander International Logistics also offers their own proprietary MyMallory Management Portal that allows users to customize their experience and get the information they need, when they need it.

Penske

One of the most recognized names in logistics, Penske offers a full suite of state-of-the-art solutions to get your cargo where it needs to go. Penske serves a wide range of industries, from automotive to chemical, consumer goods, food and beverage, pharmaceuticals, electronics, industrial manufacturing, retail and more. With more than 35,000 employees around the world—and more than 300,000 vehicles—the company is poised to offer customers a wide array of solutions that will fit their individual business needs

Approved Freight Forwarders

Approved Freight Forwarders began its business serving Guam and is now one of the premier freight forwarders in the Pacific, connecting Hawaii, Guam and California to the rest of the world. Offering ocean, air and over-the-road transportation, Approved Freight Forwarders is the only freight forwarder with terminals on all four of the major Hawaiian Islands. Serving both individuals and business clientele, Approved Freight Forwarders has one of the lowest damage claims rates in the industry, thanks to the personalized attention they pay to each shipment.

Magnate Worldwide

One of the fastest growing companies in the logistics industry, supply chain management company Magnate Worldwide comprises wholly-owned subsidiaries that work tirelessly to offer premier logistics services, including global freight forwarding and expedited domestic transportation. With a high focus on customer service, Magnate Worldwide offers specialized services, specializing in time-sensitive, high-value shipments.

Kanban Logistics

North Carolina-based Kanban Logistics offers inbound logistics services for manufacturers, ecommerce and finished goods distribution. Kanban is certified to the ISO 9001:2015 quality standard by MCNA as well as the MCNA certificate of registration for AS9100D, the Federal Aviation Administration’s aerospace industry standard. Kanban also holds a superior rating by AIB International and is compliant with C-TPAT, an added security program. They are also a general purpose FTZ, enabling them to defer duties until products are shipped within the United States.

Burris Logistics

Pioneers in the cold chain logistics space, Burris Logistics began as a father-and-son tomato delivery operation in 1925 and has since grown to more than 2,000 employees. Burris Logistics puts a heavy focus on teamwork, with their ONEBURRIS initiative, which operates under the motto “team before self.” This guiding principle empowers the Burris Logistics team to not just work together, but to work together for betterment of their customers.

Neovia Logistics

Neovia Logistics works as a true partner to their customers, helping them grow their business. Neovia has more than 100 facilities in over 20 countries, spanning six continents. Working mainly with automotive, aerospace, technology and industrial customers, Neovia offers everything from warehouse management to inventory optimization, supply-chain technology and support, inbound logistics and much more.

Transportation Insight

Transportation Insight employs hundreds of highly trained logistics professionals across the United States. Specializing in unique supply chain solutions, the company deals with everything from domestic transportation to international logistics. Transportation Insight works with clients ranging from small businesses to Fortune 500 companies, help either find ways to cut costs and increase efficiency.

With these top 50 3PLs, you can rest assured your cargo is in good hands, affording you the peace of mind you need to get back to running your business the way it was meant to be run.