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Contaminated Fuel Speculation and the Insurance Fall-Out from the Baltimore Bridge Crash 

tugboat baltimore bridge,global trade,supply chain,francis scott key bridge

Contaminated Fuel Speculation and the Insurance Fall-Out from the Baltimore Bridge Crash 

One of the factors investigators are looking into surrounding the Dali cargo ship crash into the Francis Scott Key Bridge in Baltimore is “dirty fuel.” An officer aboard the ship recounted the presence of a heavy smell of burning fuel in the engine room after one of the engines shut down. Dirty or contaminated fuel can create clogging issues with a vessel’s principal power generators.  

Ships use different fuels depending on the points of their cruise. A relatively light diesel fuel is standard while vessels are inside a port, and if contaminated, algae, dirt, and water are the most common culprits. 

The Dali is a Panamax-type ship built in 2015 by Hyundai Heavy Industries. The vessel has a capacity for 10,000 containers and is one of thousands that frequent the Suez and Panama Canals. The Dali underwent more than 20 port state control inspections, and according to the international shipping database Equasis, none of the inspections resulted in the ship’s detention. 

The Singapore-based Synergy Marine Group operated the Dali on the Tuesday, March 26th crash. The ship was hauling cargo for A.P. Moller-Maersk and heading for Sri Lanka. The Dali was moving at an industry-standard speed of roughly 9.2 mph, and weather conditions were stable. 

Insurance analysts expect the bridge collapse to result in multiple multibillion-dollar insurance claims. Disruption to businesses that rely on the port to the bridge itself will require coverage, and the crash victims will likely raise claims against the ship operator. 

The entities that will bear the bulk of the insured cost are the reinsurers, who take on risks sold by the insurers. Britannia P&I Club is the Dali’s insurer, and it is common for specialized marine insurers to have reinsurance coverage of approximately $3.1 billion for vessels like the Dali.

For a point of comparison, thirty-two people perished in 2012 when the cruise ship Costa Concordia sank near an Italian island. Insurers paid over $2 billion to claimants. Meanwhile, in 2022, the car carrier Felicity Ace, caught fire and sank, resulting in approximately $500 million being disbursed under insurance policies.

LTL

Transfix and Rocket Shipping Collaborate to Elevate LTL Experience for Shippers

Transfix, Inc. has announced a strategic partnership with Rocket Shipping to enhance it’s Shipper App, expanding its capabilities to include Less Than Truckload (LTL) quoting and tendering. This collaboration marks a significant milestone in Transfix’s multi-modal, source-to-settle platform, now offering Full Truckload (FTL), Intermodal, and LTL freight operations.

The partnership with Rocket Shipping brings deep LTL expertise to Transfix’s platform, offering shippers improved carrier management, issue mitigation, and competitive shipping rates. With this enhancement, users can expect faster onshore expert support, an upgraded LTL experience, and access to a curated network of high-performing LTL carriers.

Jonathan Salama, CEO and Co-founder of Transfix, emphasized the company’s commitment to leveraging technology to address real-world logistics challenges. He stated that integrating Rocket Shipping’s capabilities into the Shipper App provides customers with a comprehensive solution for their freight operations.

Gabe Pankonin, CEO of Rocket Shipping, expressed excitement about the partnership and the value it brings to shippers. He highlighted the combined efforts of both companies in optimizing freight operations through unique LTL expertise and competitive rates.

The update to the Transfix Shipper App, featuring LTL quoting and tendering capabilities, will be rolled out soon to all users. This collaboration represents a significant advancement in Transfix’s mission to streamline and simplify freight operations for shippers nationwide.

transportation supply chain odex portal

From Operational Tool to Strategic Weapon: Shipper Portals Redefine Logistics

In the past, logistics management existed within an opaque realm – shippers lacked visibility, carriers faced limited collaboration, and customers were often left wondering where their orders were. Shipper portals, seamlessly integrated within modern Logistics Management Software (LMS), are breaking down these barriers and empowering shippers to do more than just ship goods; they’re gaining strategic control of their supply chain.

The Central Command for Shippers

A shipper portal acts as a comprehensive workspace within your LMS. Intuitive interfaces make order management a breeze – easy bulk uploads, automated label generation, and streamlined processes cut down on manual labor and reduce the risk of errors. But true power comes from the unprecedented visibility they grant shippers. Tracking shipments in real-time pinpoints exact locations and proactively identifies potential bottlenecks. This granular information is no longer a luxury; it’s a necessity for managing customer expectations and staying ahead in the market.

Turning Visibility into Actionable Insights

Shipper portals don’t just offer a window into your logistics; they offer the tools to act decisively. When delays crop up, shippers can immediately reach out to carriers and begin collaborative problem-solving. This eliminates miscommunication, builds stronger partnerships with carriers, and ultimately improves on-time delivery rates. Furthermore, the detailed shipment records accessible through these portals generate valuable data for shippers. Advanced reporting and analytics can uncover trends, reveal optimal routes, compare carrier performance, and pinpoint areas for optimization you never knew existed.

Customer Experience as the True Differentiator

The transformative power of shipper portals is undeniable, but their impact extends far beyond streamlining processes. In an era where customers prioritize reliable, transparent service, shipper portals offer a tangible competitive advantage. Real-time updates and accurate delivery estimates turn anxious waiting into informed confidence. Additionally, self-service capabilities through the portal empower customers, reducing service inquiries and freeing up your organization’s time and resources. It’s about more than delivering packages; it’s creating a customer-centric logistics experience that fosters long-term loyalty.

A Catalyst for Industry Innovation

If efficiency, collaboration, and customer delight are the present of shipper portals, their future is even brighter. Logistics tech is in a phase of rapid advancement, and shipper portals are ready to integrate with these innovations. Expect the following:

  • Hyper-Intelligent Optimization: AI algorithms and machine learning models will power even smarter route planning, considering factors like traffic, weather, and historical data for maximum efficiency.
  • The IoT Connection: Sensor-equipped shipments will transmit real-time data on temperature, humidity, and other sensitive metrics, giving shippers unprecedented control in areas like cold chain logistics.
  • Proactive is the New Reactive: Predictive analytics will uncover patterns and forecast disruptions before they occur, enabling proactive decisions well in advance, minimizing costly delays.

It’s Time to Own Your Supply Chain

The days of fragmented and reactive logistics are over. Shipper portals integrated with intelligent Logistics Management Software offer a unique opportunity to transform your supply chain from a cost center into a strategic differentiator. It’s time to move from simply shipping products to truly orchestrating your logistical symphony, where collaboration, data-driven insights, and customer delight pave the way for lasting success.

containers

Delivering with Confidence: Tips For Properly Strapping Down Containers 

Protecting your goods during a long transit can be stressful. You can run into several challenges along the road. Fortunately, cargo transportation has never been easier than using a Shipping Container. These huge metal boxes can literally transport anything from fruit to potentially dangerous goods. They can even keep your cargo safe from outside forces.

Though, what exactly protects these heavy-duty containers during transit? Taking steps like using Ratchet straps, maintaining your tensioning tools and sticking with transportation regulations can ensure your container stays secure. Your container will remain safe the whole ride through. You won’t even have to worry about cargo loss. In this blog, we’ll go over some transportation container tips that’ll help you better protect your cargo box. 

Why You Should Properly Strap Down Your Container

For truck drivers, your main concern should always be protecting your load. The best way to do that is by staying compliant with the state laws. In the instance of a Shipping Container, the police can slap you with a hefty fine for improperly strapping down your cargo box. Even worse, refusing to strap down your container properly could lead to a fatal car accident resulting in multiple casualties. If you’re hauling an ISO tank container full of a chemical liquid, you definitely want to avoid a hazardous spill on the highway. You could be stripped of your certificates, licenses, permits and even lose your job. Be sure to make sure you’re following Industry regulations for securing your Shipping Container. Also, double check that all your Shipping Containers parts and tools are up-to-date. Protecting your Shipping Container means protecting yourself from the law as well. 

Properly strapping your container isn’t just the law though, it’s also crucial to protecting your goods. If you don’t practice Shipping Container strapping methods or use faulty hardware, you can almost guarantee that your container won’t be safe during transit. Investing in securement tools like straps, chains, lashing bars, and twist locks can ensure the safety of your container. It’s better to use high-quality tools for better performance, tensioning and security of the transportation container.  

For instance, Ratchet Straps are commonly used to tie-down containers due to their optimal tensioning, durability and adaptability to its dimensions. When it comes to choosing the right straps for container securing, they take the lead. A high-quality Ratchet Strap will make sure your container doesn’t fall away. 

Additionally, inspect your Shipping Container for any signs of damage that could lead to problems down the road. Specifically, check everything from the container’s locks, seals and alarm systems to ensure they’re working up to par. You want to make a habit of checking that all your equipment is functioning properly before taking off. 

In addition to inspecting your container, you must also examine your hardware as well. Make a habit of regularly examining your chains, straps, twist locks and friction mats for any early signs of wear and tear. Though it may be expensive, make some necessary replacements. Faulty equipment could lead to tensioning issues over your container and evidently, losing your cargo. If you catch these problems early on, you can prevent an incident such as this from happening. Even better, you can keep trucking away.  

What’s The Best Way To Strap Down A Shipping Container?

Ratchet Straps may be a must-have for many truckers. However, there’s various other container strapping methods for safe delivery to choose from. 

For instance, Direct Lashing involves having horizontal bars installed on the trailer’s side rails. They provide several attachment points for your straps and chains to be connected to, all while securing the container. In the end, these bars balance out the tension of your straps and stabilize the cargo box. However, there are a few disadvantages to using direct lashing methods. One of the biggest involves the possibility of damaging the cargo. While it may not directly come in contact with your container, the pressure applied over it could lead to denting or scratches. Also, lashing slows down your preparation process due to manual handling and constant readjustments. 

Another method for container boxed strapping is to use twist locks. Simply rest the corner castings of your container on top of the twist locks at the very end of the truck’s trailer. To secure it, turn the lock’s handle at a right angle. Fortunately, this safety feature keeps the container in place on your trailer throughout the whole ride. Even better, these locks improve loading time and provide better safety measures. Not to mention, they’re much easier to utilize. Given all of these great features, it’s obvious why truckers hauling ISO tank containers prefer them over other methods. 

However, these locks aren’t designed to handle all types of cargo, only Shipping Containers. Additionally, it’s imperative that twist lock design is compatible with the container and trailer. Otherwise, your cargo won’t be secure. 

Friction mats also reduce the chance of your container falling off your trailer. Their rubbery construction provides traction, which keeps your metal box sitting pretty and in place. However, keep in mind that friction mats aren’t a sufficient option compared to chains, straps or twist locks. They don’t provide multiple securement points like direct lashing does. Friction mats also don’t evenly distribute the weight of your cargo. 

Arguably, the best way to go about securing your cargo comes down to your Shipping Container needs. Each of these securement tools comes with their own set of advantages that could benefit your situation. In the end, decide what works best for you based on the job requirements.   

Stay In Line With Safety Regulations

Staying in line with industry regulations for container transportation can prepare you for the long drive ahead as well. You may be familiar with some of these rules already, such as the International Convention for Safe Containers (CSC) and the International Organization for Standardization Standards (ISO). These regulations cover the safe handling, construction, dimensions and identification of containers. Additional regulations to familiarize yourself with are International Maritime Organization (IMO) and the Safety of Life at Sea (SOLAS), which basically involves the safe transport of your goods aboard a ship. International Road Transport Union (IRU) regulations address loading procedures, driver safety practices and the requirements for a vehicle. On the other hand, Occupational Safety and Health Administration regulations (OSHA) promotes workplace safety and protects workers during Shipping Container transportation procedures. 

While these regulations are pretty common everywhere you go, another country may have additional compliance guidelines for the transportation of Shipping Containers. Make sure you’re aware of a country’s regulations beforehand. Otherwise, you could run into some serious trouble. 

Speaking of which, improper container strapping could lead to serious legal liabilities, including cargo liability claims and being held accountable for accidents and fines for overweight containers transported on the road. You could even have a lawsuit on your hands. In any case, you want to avoid any of these scenarios and make sure you’re meeting all transportation regulations. 

Fortunately for you, there’s a couple of ways you can stay up to date on the latest guidelines for Shipping Containers. You can participate in industry-led forums and safety seminars to get all the information you need. That way, you stay ahead of the game and are well-prepared for the transport of a container.

Helping You Become A Better Driver

Transporting a Shipping Container doesn’t just mean getting the job done, but also doing it right. Whether it’s your first time transporting a container or you’re seeking a safer method to do so, you must take several factors into consideration. Knowing the best strapping and loading methods for ISO tank containers, which safety regulations to comply with and inspecting your tensioning devices are three of the most important aspects of transporting a Shipping Container. Understanding these key points will help you excel at transporting a container and ultimately, become a better driver. 

Author’s bio

Matt has an extensive background as a Content Writer, writing articles on topics ranging from entertainment news to health and wellness. He currently works for Mytee Products as a Content Strategist. 

 

 

 

intermodal cargo shipping container import logistics chain port containers

Fluent Cargo Makes Route Planning Easy

The company’s launch reflects strong demand from shipment planners in the global logistics industry.

Fluent Cargo, an Australian technology company specializing in international shipment planning and research, announces the launch of its multi-modal routing engine and platform. 

The solution helps logistics professionals find the best ways to get any shipment to and from any location in the world using available modes of transport. 

Users simply input an origin and destination country, city, port or address, and the system will immediately provide multiple shipping options.

Whether the shipment requires air freight, ocean freight, trucking, or other services, Fluent Cargo displays multiple route options, single or multiple combinations of modes of transport along with transit times, carrier information, and detailed specifics including the type of plane or ship used, capacity and more from thousands of service providers.

Fluent Cargo aims to democratize the planning and scheduling of the movements of international shipments and make the process as easy as planning a holiday.

Availability

The Fluent Cargo platform is now live at FluentCargo.com, and is accepting new registrations from the worldwide logistics industry — logistics service providers, and shipping professionals at businesses with both domestic and international shipments. 

Pricing 

Fluent Cargo is currently free of charge for users and will always have a free plan. Additional premium features are currently in development and will be rolled out in the coming months to create additional value for business and enterprise users beyond the free version’s capabilities.

Technology

The Fluent Cargo platform’s advanced technology sources gigabytes of data from a multitude of partners, incorporating live tracking information of every aircraft and ocean vessel updated frequently. 

Additionally, Fluent Cargo compiles schedule data from hundreds of airlines (passenger and cargo) and ocean carriers, via both aggregators and direct integrations. 

This extensive data, which encompasses city, airport, seaport, road network, and shipping lane information, is integrated into a “comprehensive digitized global shipping network.” 

Using proprietary algorithms, the platform rapidly parses this data to generate tailored search results for users based on their unique requirements. With a minimum input of origin and destination, users can further customize their search with preferences such as carriers, locations to avoid or route via, and even specific cargo requirements like size, volume, and type.

About Fluent Cargo

Fluent Cargo is an independent, mission-driven company with a vision to provide our clients with instant access to all of the information they need in order to better plan their shipments. We’re constantly thinking about schedules, port features, carrier information, port congestion, and other factors that influence shipment planning, be it on a plane, ship, or truck.

traxens shipping

Traxens New IoT Device Leads Smart Container Requirements For Decarbonising Shipping

Traxens, the world’s first smart-container service provider for the global supply chain industry, unveiled today the new third edition of the Traxens-Box 3, its permanent container tracker and flagship product for shipping lines, freight forwarders and BCOs.

With the shift to green methanol-powered vessels and the increasing safety requirements of the International Maritime Organization, the Traxens-Box 3 IoT device has been completely redesigned to meet the highest level of ATEX certification on the market for explosion safety onboard ships.

Various shipping products are now being subjected to new explosion safety requirements as the shipping industry moves towards clean energy such as methanol-based fuel.

Added to the ATEX redesign, the battery life now reaches 7 years – an increase of 50% compared to the previous model. As a permanent container installation, this feature is critical to maximizing the device’s return on investment during a major part of the life of a container.

While focusing on risk management and cargo safety, Traxens continues to reinforce its main features for greater reliability. Traxens’ door opening detection, whose algorithms are constantly being improved, has already demonstrated its value in numerous cases, such as when consumer electronic goods have been stolen and when authorities have intervened timely after being alerted.

Several thousands of Traxens-Box 3 devices have already been pre-ordered by Traxens’ main customers who will start to deploy them in the following months.

The world’s top shipping lines, which are also Traxens’ shareholders, are already using the two previous versions of the device to convert their assets into smart containers, constantly communicating their location and additional status information.

About Traxens

Traxens has been driving digital transformation in the global supply chain for more than 10 years. The company’s breakthrough loT technology, data science expertise, global logistics experience and standards leadership unlock the value of real-time data generated from cargo assets shipped by sea, rail and truck. Traxens is trusted by hundreds of global cargo owners, enabling them to reduce door-to-door transport costs, optimize their operations and minimize risk. By partnering with the world’s leading shipping lines, authorities and insurance companies, Traxens helps all members of the global logistics supply chain ecosystem to reach a sustainable and optimized supply chain. Traxens is privately held and headquartered in Marseille, France.

holiday season box

5 Tips for Shipping Atypical Items

Let’s say you got something shipped in the mail for a birthday or holiday. Someone you dearly care for told you that they were sending you a special surprise. You were excited at the prospect, full of hope and curiosity. Then the day comes, and you receive your package. But the experience isn’t quite like you expect.

Maybe the gift wasn’t so much of a surprise. The gift you received was wrapped thoroughly, but it looked exactly like the item inside. You started to slowly open it, and wow, wouldn’t you know it, it is exactly what you thought it would be. It was awesome to get the gift, but a little bit more of a surprise would have been nice.

Or maybe the item you received was wrapped, but not thoroughly enough. You opened the package only to discover that the special gift someone picked out for you was bent, broken, or damaged. This really affected your experience, and when you told the person who sent it, they also expressed disappointment. There may not have been a way to salvage the item or seek a refund.

Listen: Packaging up oddly shaped or fragile items for shipping isn’t easy. Luckily, there are some ways to improve the experience and decrease the chances people receive broken items. Here are four tips to help you ship delicate, atypical, or oddly shaped items:

  1. Look for a sturdy box or container.

If you have something that is oddly shaped or delicate, you need a box or contain that is bigger than the item you are shipping. There must be enough room for you to cushion the item, ensuring that whatever you send doesn’t get broken or damaged. Honestly, it doesn’t matter what size the item is. If the box or container is bigger, you should be able to ensure the safety of your item while keeping the element of surprise (if it is a gift).

  1. Don’t get a box that’s too big.

However, if you package something in a container or carton that is significantly bigger than the item you are shipping, there is a greater chance that it will get broken. The less space an item has to move around in, the fewer chances there are that it will break. For example, if you are dealing with custom awards and trophies, measure the height and width of the item and find a container that is only slightly bigger than that to have it sent off. Can you make a container that is way too big work? Of course. But it will require a lot of extra packing materials, which in the end is very wasteful.

  1. If necessary, utilize more than one container

If you are worried that you won’t be able to secure an item inside of a container, maybe try using two containers instead of one and a bunch of packing material. For instance, if you are shipping a music box, you could put it in a box and have that box placed in a sturdier, but still snug, outside box. This will help eliminate any of the bumps and bruises that your item might incur during the duration of its trip.

  1. Use plenty of filler

The best option might wind up being the one where you load up your package with different fillings. Whether you use a corrugated wrap, packing peanuts, old newspapers, or some other item of your choosing, they will help to increase the stability inside of the package. One of the easiest ways for something to get broken in transit is the jostling that occurs. By using plenty of filler, you are mitigating that risk.

  1. Purchase custom-made inserts.

These might even be offered by the company that you purchase your item from. It’s not unlikely that a guitar company would have custom-made inserts to make sure that the instrument you purchased to send to someone else will stay intact for the entire trip. If that’s not the case, you could have custom inserts made for you. Granted, this is more expensive way to go about it, but it could be the best way to protect your item.

By smartly sending your items, you can give a loved one a perfect gift that will be intact and a great surprise.

Mike Szczesny is the owner and vice president of EDCO Awards & Specialties, a dedicated supplier of employee recognition products, branded merchandise, and athletic awards. Szczesny takes pride in EDCO’s ability to help companies go the extra mile in expressing gratitude and appreciation to their employees. He resides in Fort Lauderdale, Florida.

 

ICHCA terminals

ICHCA Focuses on Helping Ships Transporting Ammonium Nitrate to Manage Risks for Fire Prevention and Mitigation

The risks posed by poor conditions of storage of this common compound, which is used extensively in the Fertilizers and Explosives industries, have been well documented but awareness of the dangers of fire during transportation by sea is less well known.  The objective of this guide, entitled ‘Ammonium Nitrate Fire Risk on Board Ships’ is to outline best practice with respect to the management of risk on vessels chartered to ship the compound through ports around the world.

Ammonium Nitrate (NH₄NO₃), a white to grey odorless chemical has a melting point of 169 degrees C and decomposes at 210 degrees C. While it does not burn by itself, significantly it will accelerate burning of combustible material, producing toxic oxides of nitrogen and ammonia, which will support combustion, even in the absence of oxygen. 

The whitepaper outlines in detail ammonium nitrate’s peculiar reactions to heat and subsequent conflagration, as well as the nature of its decomposition.  These characteristics mean that the specifications of vessels’ equipment, including deck cranes, hatch covers, hold linings, fuel tanks and pumps, also forklifts and other handling devices, must be precise.  The whitepaper offers comprehensive guidance on these particulars.

Above all however from a fire prevention point of view emphasis is put on compliance with IMDG Code, which typically requires ammonium nitrate to be stowed on deck only.  The Code does however allow an exception for certain forms of the compound and fertilizer containing it to be stowed under deck.  The rules for this are outlined in clause 7.6.2.8.4.

The whitepaper is at pains to underline that while all IMDG clauses are pertinent to fire risk, all ships and cargo operators must be particularly cognisant of Clause 7.6.2.8.4. as it is crucial to the ability to respond effectively if an ammonium nitrate fire on board a ship is out of control and the risk of an explosion is imminent.

The intention of the clause is that all a vessels’ hatches – including tween decks- shall be openable in case of an ammonium nitrate fire. There is however potential to misunderstand this point and ICHCA is working with the IMO and stakeholders to clarify the wording of the clause.  Several jurisdictions, that handle the product in significant quantities, have taken heed of this risk and the related IMDG requirements. At the time of publishing, three countries that have specific arrangements are Australia, South Africa and Chile.

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organization dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.

Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain. 

 

Loading goods without having to worry about coping with the capacity crunch

Top Strategies for Coping with the Capacity Crunch

In spite of the recent improvements concerning shipping container shortages and similar, the capacity crunch is still a real concern. In fact, it is likely to remain one indefinitely. So, coming up with viable solutions to the problems is one of the foremost tasks for any business involved in the shipping and transporting of goods. To contribute, we have prepared a guide on the top strategies for coping with the capacity crunch!

Work on your efficiency

The first way of coping with the capacity crunch is to make it easier for carriers and logistics companies to work with you. Since the capacity crunch makes it necessary for them to be slightly pickier with their partners, choosing someone who helps them do their work quickly and effectively will always be a priority. Meaning they likely won’t choose to work with you if your handover of goods is not optimally organized. Besides, some effort to optimize your distribution center will also help your own business, as well. It is only better to invest time and resources into such a project.

Form long-term cooperative agreements

If you want a guarantee that you’ll be able to ship your goods consistently, the best thing to do is form long-term cooperative agreements. If you know you can rely on your partners for shipping space; you won’t need to worry about a capacity crunch. They will also feel more motivated to provide you with enough space for all your shipping needs. In addition, working more closely together gives you the benefit of knowing your goods are being handled well. And that they will arrive safely at their destination without any damage. Which is not something you can absolutely guarantee when working with new carriers.

Improve your routes

If you rely on your own truck fleet or other transportation methods, one way of coping with the capacity crunch is to optimize your delivery routes. As logistics experts like to point out, working on the improvement of your everyday traveling routes can shave off a lot of time from your schedule. This would, in turn, free up your trucks faster and allow you to make more rounds. It may not be an obvious thing when just paying attention to short-term boosts to your delivery efficiency. However, over weeks and months, it will slowly add up to a significant improvement well worth all the effort to achieve it!

Ship more frequently

Yet another method of coping with the capacity crunch is making more yet smaller shipments. This somewhat synergizes with our previous piece of advice. Of course, there is a serious downside to this, especially if you are doing it yourself. Frequent smaller shipments still use up fuel, which would increase your operating costs. Still, if your goal is to get your goods to the destination as quickly and reliably as possible, this is likely one of your best options. The downside is somewhat minimized, too, if you are working with logistics companies or carriers. The price of their service is, after all, primarily based on the amount of inventory you have them transport. Especially if they are picking up your goods while running their own pre-set routes. In this scenario, you should definitely prioritize making this your preferred mode of operation.

Organize your shipping dates better

If the idea of shipping more frequently does not appeal to you, then there is a decent alternative. Namely, you can simply try to put the dates forward a little. If you ship your goods earlier than the stipulated deadlines, you will have the time required to deal with any delays or issues that pop up. Now, this does cause problems of its own. Namely, it causes potential inventory and warehousing issues. If the goods are delivered too early, the recipient may not have enough space to store them. Or the delivery may overlap with another and cause a delay in unloading the goods. This is why, if you opt for this particular solution, make sure to properly communicate the changes with your partners or customers. This way, they will have an opportunity to fix things on their end, and problems can be largely avoided.

Cooperate with multiple logistics companies

Whether you are doing shipments yourself or have a set partner, another potential solution for capacity crunch is simply working with multiple carriers instead. After all, if a single company cannot properly account for all your needs, then several will. Naturally, this does mean you need to carefully pick and choose whom you want to work with. You would also need to go through the process of fine-tuning your cooperation with them once again. But, if you consider the current state of global logistics, this is not a bad idea at all. If any of your partners run into serious issues, you still have the option to fall back on. As such, working with multiple companies would not only solve your capacity crunch problems but provide you with a sense of security as well.

Invest in your own expansion

The final way of coping with the capacity crunch is to expand your own shipping capacities. Now, this is both the most expensive and most viable solution. Obviously, it requires a considerable short-term investment. And even an increase in your everyday expenses as you work to ensure the maintenance of your trucks. But, consider this: you would have your own solution, which you can have absolute confidence in, and would not be required to deal with agreements, partnerships, or schedule syncing. In other words, you would have complete control over the shipment of your goods. This is by no means a small boon for any company! Especially since you could fine-tune all the deliveries and the expenses associated with them.

Final comment

We hope that the top strategies for coping with the capacity crunch we have prepared will be helpful to you! Of course, whatever solution you settle on, know it will take some time to properly integrate them into your business. So, make long-term plans rather than temporary fixes!

Author Bio

Jacob Fabre is a logistics expert associated with Movers Not Shakers and has over two decades of experience in the field. He draws on this knowledge to produce quality texts and articles on various subjects related to his field of work.

IMO 2020

SCRUB 2020 AWAY: HOW THE INDUSTRY IS HOLDING UP AFTER ONE YEAR OF IMO 2020

The shipping industry has experienced one heck of year since IMO 2020 took effect. Looking back, it is reasonable to state that ocean shippers were focused solely on ensuring compliance was achieved to meet the new standards in combating the emissions footprint. Outlined in our article from last year, the issue of cleaning bunker fuels for the first time paired with the contractual challenges presented by the regulation posed new sets of challenges to be met–and quickly.

Fast-forward to mid-2020, and shippers found themselves in a completely overturned economic situation due to the pandemic. Capacity restraints, shutdowns and cost fluctuations were beyond what any industry could have predicted for 2020. When the impact of the pandemic was truly felt for shippers in mid-March, IMO 2020 compliance quickly became a backburner concern, due in part to proactive preparations in meeting regulations and identifying how the industry would overcome the new disruption. This “new normal” forced changes in forecasting and management on a new level. 

Global Trade Magazine talked with Carmen Gerace, BDP International’s chief transportation officer, about the state of the ocean shipping sector and how IMO 2020 in conjunction with the pandemic shifted operations. BDP International is one of the world’s leading, privately held freight logistics and transportation management firms.

“Most of our clients, at this stage, have really done a superb job at meeting compliance standards for IMO 2020 and reducing the carbon footprint,” Gerace says. “Interestingly enough, IMO 2020 got pushed back to mid-March at the onset of the pandemic with everything shutting down. Our clients had a year to prepare for IMO 2020 and they prepared well and were ready to go. Places like Freight 4 did not contribute to the current chaos of the ocean situation we have today. Industry players were prepared and ready, then everything else hit, and it went from there. That’s where we sit today.” 

Aside from COVID-19, reducing emissions has been a success for most of the industry, according to Gerace. Despite setbacks and delays, shippers were responsive to the call of IMO 2020, contributing to the overall reduction in emissions output and preparing vessels accordingly. 

“The risk of non-compliance simply could not be afforded by ocean line providers,” Gerace says. “New builds, scrubbers, retrofitting and the undertaking that they had to put forth to achieve this had to be pushed back; however, it has been a success thus far. Additionally, the threat of ships being restricted to berthing into ports pushed compliance efforts even more. Ocean carriers simply could not afford that risk.”

For 2021, the industry will have COVID disruptions to manage. From ensuring the safety of employees to accurate forecasting, it is critical for ocean liners to predict market fluctuations to keep costs and operations at optimal levels. With April just a couple of months away, shippers will have new rates to consider, as the expiration for current rates is on the horizon with the potential spike in air freight to transport the COVID vaccine. How these fluctuations are handled is a matter of timely forecasting and proactive measures now to ensure success for the next year and beyond. 

“COVID recovery remains the largest challenge for shippers currently,” Gerace says. “This, paired with the potential increased concentration of the air freight markets due to the demand in transporting the vaccine, will undoubtedly present problems. As we anticipate an influx in vaccine transportation demand, it is important to remember that air-cargo capacity has its limitations, and this could create an attractive opportunity for ocean shipping. 

“The downside to this is increasing capacity on the ocean side, becoming more backed up than it already is. Once that occurs, costs are at the top of mind. Costs are up roughly 170 percent compared to where things were this time last year. This will not go down within the first four months of 2021 and quite frankly, it will never go back to where it was. It is going to come down again at some point, but the question is, when? Some predict May, some predict June.” 

Gerace notes that the industry relies heavily on the transpacific eastbound market, and all those rates expire by the end of April. 

“It is critical for the industry to get freight ready for 2021 and the beginning of 2022,” he says. “Cargo carriers, BCOs, etc. must work on their budgets and operations anticipating this. The question is, how much have they taken into play that the first four months of 2021 could very well be as bad as all of 2020 from the cost perspective?”

At this point, maintaining compliance efforts and efficiencies are on the backburner for industry players. What is more of a concern comes in the form of accurate predictions, cost management and proactive preparations based on these forecasts–predicting market challenges related to COVID, and how that will trickle down to shippers’ bottom lines. BDP takes these factors into account for their clients, encouraging forecasting to ensure the timely allocation of resources, space and equipment, which Gerace characterizes as critical in these times. The more a customer can forecast out, he says, the better off BDP can align with partners to quickly and effectively reserve resources needed for success. 

“BDP has different options for customers from LCL cargo to sea-air, air freight, chartering and more,” he explains. “We look at anything else our customers’ ask us to do. Operations come at a cost and sometimes sticker shock is a challenge, which we understand. Our goal is to continue to provide weekly options and provide information on port capacity, which ports are running on time, where there is an equipment surplus, and where deficits are a concern, so customers can plan how long of a delay to expect. This all goes back to forecasting. Forecasting is key for everybody, especially in the current market. The further out the shipper can forecast, the better. This is critical because space and rates are at premiums and will remain this way in the future. Everybody is backed up.”

The industry has survived one of the most intense years for disruption. With compliance a non-issue, shippers will be tested on a new level in preparing for the future. As we enter 2021, partner relationships will be critical in maintaining to ensure the best options for continued operations are available. The hope from the COVID vaccine will present its own set of challenges, but with the right partner they can be managed. 

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As BDP International’s chief transportation officer, Carmen Gerace oversees all aspects of global transportation, including the implementation of new transport solutions and product offerings while also developing future transport strategy. Throughout his 25-year+ career in the industry, he has held varying managerial and executive positions at BDP. He is based in Philadelphia and can be reached at carmen.gerace@bdpint.com