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How to Prepare for Global Logistics in 2022

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3pls, Archives, Global Logistics, Global Trade Daily, Ocean Carriers

How to Prepare for Global Logistics in 2022

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2021 was a difficult year in global logistics due to ongoing volatility. We worked alongside customers navigating the Suez Canal block, hurricanes and cyclones, port and terminal closures due to COVID-19 outbreaks, customs and trade changes, labor shortages and more.

I’ve been in the industry since 1997 and I have never seen this level of continual disruption across the entire supply chain for this length of time. However, with this year’s volatility, I was also given a front-row seat to a new level of hyper collaboration –  including individuals going out of their way to help each other, more strategy sessions between shippers and forwarders, and continually leaning into historical data and current market insights to find smarter solutions.

As we approach another potentially volatile year, I wanted to provide key strategies for global shippers to consider.

Seek creative solutions across the entire supply chain

At year-end, we typically see a jump in demand as shippers meet quarter-end quotas and prepare for the upcoming Lunar New Year, during which many factories in China shut down. However, in early 2022, shippers will also be juggling potential delays from the Winter Olympics which will be hosted in Beijing throughout February. All of this is amid a strained supply chain market, which will take time to ease.

As you prepare for 2022, consider what different modes, trade lanes, or inland transportation strategies you can implement in your supply chain. For example, while it may not be feasible to transport 100% of your freight via air, air freight continues to be the fastest way to replenish inventory, so prioritizing specific freight can help keep cargo moving. In fact, C.H. Robinson is running on average 15-17 air charters a week globally for customers looking to avoid the congested ocean ports, and we don’t expect that number to decrease at the start of the new year.

Additionally, as demand and rates will likely continue to stay elevated through the beginning of next year, less-than-container load (LCL) shipping is a strategy to consider. Typically, space for LCL shipments is easier to find especially in a constrained capacity market, since you are only looking for some container space versus an entire empty container. We also continue to see large cost savings with expedited LCL services compared to today’s airfreight environment.

Keep in mind, LCL shipments are not going to bypass congestion at the ports, so inland strategies need to be considered. Currently, many ocean carriers are looking to move more IPI (interior point intermodal) cargo versus focusing on port-to-port. We were able to help increase the flow of cargo inland for our customers by sending more 53-foot containers so cargo on the smaller 40-foot ocean containers can be efficiently consolidated in the larger ones and loaded onto trucks or trains to be taken to inland destinations more quickly. Overall, this increased our container capacity by 25% in Southern California.

As you can see, looking at only one portion of the supply chain or one mode can only get you so far. It’s important to consider all areas to keep your cargo moving.

Utilize data and technology

Although this past year has rendered a lot of unique situations and 2022 may do the same, historical data can still help us find solutions. Finding common trends and themes in your cyclical data can give you an information advantage to make smarter decisions for your supply chain.

Additionally, the right technology tools can give you the visibility and predictability you need to adjust. For example, with the ongoing port congestion and delays, C.H. Robinson enhanced the vessel routing and tracking features within our transportation management system, Navisphere®, to increase the efficiency and accuracy of port ETAs and automatically send updates if changes were discovered. This is important because ocean shipping is only one piece of the equation. Having visibility to changes in real-time gives our team and customers a chance to react and adjust other tactics down the road.

Look to global trade opportunities

While congestion and shortages continue across transportation modes, one area where you may find opportunities for savings is in your global trade strategy. Since each country’s trade policies are unique and can change, it’s important to have regular meetings with your trade advisor to break through the complexity of your total landed costs, including understanding your costs to import, identifying duty recovery possibilities, and reducing your duty exposure via trade agreements.

For example, our team has helped shippers identify thousands to millions of dollars in tariff refunds alone. If you import into the U.S., you can easily check for potential savings and refunds with our online Tariff Search Tool. And, if you’re sourcing from other countries, our team can create a customized sourcing report sharing potential cost savings or avoidance opportunities.

Final Thoughts

While there is no one-size-fits-all approach, the above options provide shippers with strategies to help mitigate delays and identify potential savings as we enter another potentially unpredictable year.

Shippers have had to become increasingly nimble and informed over the past year, and going into 2022 it’s critical to remain agile, be open to alternative solutions, and stay informed on the latest market insights.

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Archives, Global Logistics, Global Trade Daily, Trucking

6 Tips On How To Properly Manage Your Commercial Freight

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Freight transportation is crucial to the success and growth of many businesses. In fact, it can be said that without it, many companies simply would not exist. But with all of the advantages freight has to offer, there are often many reasons why businesses fail to use this valuable resource. Here are some tips on properly managing your commercial freight business to attract more customers and increase your revenue.

The Role Of Freight In World Economies

Freight is the transportation of goods and materials from one location to another. It involves logistics, which is the management of products in a supply chain. Freight also includes customs and border crossings when items are exchanged between countries. Without freight, countries would not be able to trade with each other. However, the fact remains that even on a regional basis, freight is necessary to maintain a smooth economy and satisfy the ever-increasing demand of consumers. With the rapid expansion of online commerce over the past five years, freight has become increasingly important in all of its forms. So what are some things that you can do to ensure that you are getting your share of the business?

Maintain Your Vehicles Properly

The importance of keeping delivery vehicles in good condition cannot be understated. They are arguably one of your most significant initial expenses, and by neglecting their maintenance, you could end up with substantial repair bills and lost income due to immobile trucks. This will ensure the safety of the drivers and passengers, as well as the cargo. Furthermore, it will reduce the cost of your truck repairs and maintenance to an acceptable level. It’s a well-known fact that the best way to avoid problems is to confront them before they happen. This is true with vehicle maintenance, as well.

Utilizing a proactive approach can help you avoid expensive and time-consuming repairs that may be necessary after the damage has already been done. To that end, it could be worthwhile setting up a garage in your depot staffed with mechanics capable of performing the relevant repair as quickly as possible to ensure little downtime. A great option is to teach your drivers to perform basic checks before setting out in your vehicles. The training should be done with a combination of videos and demonstrations. Videos would show the driver how to check all required items, while demonstrations would show them what to look for and how to do it.

Hire The Best Drivers

In order to be successful in the freight business, you need to find and hire the best drivers. This is because they are the people that will get your goods from one place to another safely and on time while also complying with all state and federal regulations. One of the factors that you will need to consider when hiring a driver is their past driving history. When you do this, you can better understand how they may perform on your trucking routes. A driver who has experience on routes near yours is much more likely to succeed than one who has no experience in your area. Another critical factor is the amount of time they have been driving for companies like yours. In addition, veteran drivers are likely to be much more skilled than those new to the industry, but you can also expect to pay more.

Invest In Technology

Technology is a powerful tool that can be used to make the freight industry more efficient. It has allowed for the automation of many processes and will continue to do so in the future. Freight companies need to keep track of their inventories and customers’ orders. This means they need a comprehensive yet straightforward system. A freight management software can manage all the inventory and shipment data. It will be able to show companies where their inventory is and what quantity is needed for future orders. The customer-facing website can provide information about returned merchandise, shipping status, and tracking numbers. It will also handle the process for initiating exchanges or returns and providing downloadable packing slips and invoices.

Ensure You Are In Compliance With All Applicable Laws

Compliance with laws and regulations is one of the most critical factors when operating a freight business. It ensures that the business is not in violation of any safety, environmental, or other regulations. A freight company needs to be compliant with the law to maintain its license and stay in business. You should make a conscious effort to stay up to date with any changes in regulation that might occur.

Cover Your Business With The Right Insurance

One of the most important aspects of running a successful freight business is getting the right insurance. Without it, your business can suffer, and you may not recover from the financial repercussions. Your freight company needs to get insurance for its trucks that operate on public roads. You also need commercial automobile coverage for your business use of the truck’s cargo space and liability coverage for any problems that may arise. Plus, if you are shipping hazardous materials, you’ll need additional protection in case of an accident. It’s essential to get all levels of insurance because, without them, your company could be in serious trouble should accidents happen or something goes wrong while transporting cargo.

Manage Fuel Consumption

Fuel consumption is an essential factor when it comes to running a profitable fleet. Fuel efficiency can be decreased by driving too fast, using the wrong type of fuel, and driving with worn-out tires. Plus, if they are not adequately maintained, vehicles will lose their fuel efficiency. Most of this will ultimately come down to driver training and informing them of how you expect them to drive. Some other tips you can follow to decrease consumption include:

-Use a fuel management system

-If your drivers can save more, reward them

-Check the tachograph for speeding infractions

-Optimize routes to make them as efficient as possible

If you want to maximize your ROI, it is imperative that you know how to manage your commercial freight business properly. This can involve ensuring that your fleet is constantly maintained and that your drivers are fully trained, among other things.

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Intradco Global and Chapman Freeborn Collaborate to Transport 18 Giraffes from South Africa to Brazil

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Intradco Global and parent company, Chapman Freeborn, have worked together on a charter flight to transport 18 giraffes from O.R. Tambo International Airport (JNB) to Río de Janeiro Galeão Airport (GIG).

Averaging 4.3-5.7 meters when fully grown, the animals were transported whilst still young to ensure they had the legally required head clearance in the 2.95 meter-high crates, which were made of metal and plywood to make them both sturdy and leak-proof.

When animals are transported by air, it is of utmost importance that their safety and happiness are at the forefront of the operation. As such, Intradco Global and Chapman Freeborn ensured the giraffes’ speedy loading to reduce the time spent on the ground at the airport. Two attendants traveled with them during their 10-hour direct flight, one of whom was a breeder who has known the giraffes their whole lives, continually monitoring their well-being and providing them with fresh food and water as required.

After arriving in Rio de Janeiro, cranes were used to efficiently offload the 6 crates, each containing 3 giraffes, from the 747F aircraft. The animals then entered a mandatory 30-day quarantine, which they will finish on 11th December to then be transported to their new home.

Image: Chapman Freeborn

Alexander Kraynov from Intradco Global said, “This charter was in collaboration with the Chapman Freeborn South Africa team. Cargo Charter Manager, Gerhard Coetzee, was on the ground in Johannesburg communicating with the handling company and customs agents, and ensuring the loading went quickly and smoothly. Together we completed a successful operation that saw 18 exotic animals travel over 7,000 in safety and comfort.”

Intradco Global is the world’s leading equine, livestock and exotics transportation air charter specialist, with over 30 years of experience in providing the safest air charter logistics for animals of all shapes and sizes. Part of the Chapman Freeborn family, Intradco Global is a member of Avia Solutions Group, a leading global aerospace services group comprising more than 7,000 aviation professionals in almost 100 offices across the globe.

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Archives, Global Logistics, Global Trade Daily, Trucking

The Importance of Freight Broker Bonds for your Business

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Opening a freight brokerage can be a great way to accelerate your earnings. Freight brokers play an important role within the transportation industry by connecting shippers with transportation companies for trucks required to deliver their goods. While some shippers have contracts with specific trucking carriers, others rely on freight brokers for added flexibility, greater speed of delivery, and lower costs.

Freight brokers are required to comply with the Federal Motor Carrier Safety Administration’s regulations for licensing. There are a few different types of operating authority licenses that freight brokers need to operate within the US, depending on the type of cargo they broker. All of the different types of freight broker operating authority require brokers to meet certain requirements, including being bonded with a freight broker surety bond. Here is some information about freight broker bonds so that you can get started with your business and ensure that it successfully operates.

What Is a Freight Broker Surety Bond?

Also known as a BMC-84 bond, a freight broker surety bond is a type of guarantee issued by a surety company that the principal holder will perform the work as promised. It is not insurance since the principal broker is not protected from liability by the bond. Instead, a BMC-84 bond is required by the government before a broker can become licensed. It is meant to protect the companies that rely on the broker and contract with it for services and to ensure that the broker will comply with the applicable regulations and laws while operating.

If a freight broker fails to fulfill its contractual obligations, a claim can be filed against the bond. However, the surety company is not responsible for paying the claim. Instead, the freight broker must pay claims filed against its bond. The surety company only steps in when the freight broker fails to pay its claim. If a freight broker has unpaid claims, it could lose its surety and its ability to continue operating.

A broker that fails to pay a carrier what the carrier is owed might have a claim filed against its bond. The carrier’s claim will be in the amount the broker owes for the services the carrier provided for the shipper the broker connected the carrier to for the transportation of freight. An unpaid claim against the surety could result in the surety terminating the bond and the loss of the broker’s license. It can also make it more difficult for the broker to secure a new freight broker bond, forcing the broker out of business.

Why Are Freight Broker Bonds Necessary?

The Federal Motor Carrier Safety Administration requires brokers to secure operating authority licenses and to renew them annually to continue operating within the US. One of the requirements for securing and renewing an operating authority license is to secure and maintain a surety bond for freight brokers.

The governmental requirement for brokers to be bonded is meant to protect the companies that depend on them. This is why surety bonds for freight brokers protect the parties with which the brokers contract instead of the brokers themselves. If you do not secure and maintain a BMC-84 freight broker bond, you will not be able to operate your freight brokerage since you will not be able to secure or renew your operating authority.

Which Parties Are Involved in a Freight Broker Surety Bond?

The three parties that are involved in a freight broker bond include the following:

• Principal – The freight broker seeking the bond to secure or maintain its operating authority license

• Obligee – The governmental agency requiring the bond, which is the FMCSA

• Surety – The surety company issuing the surety bond

How a Freight Broker Bond Works

A freight broker must find a surety company to issue a bond so that the broker can secure an operating authority license from the FMCSA. The surety company will go through an underwriting process before agreeing to issue the bond. It will review the broker’s credit and financial history, ensure that the broker has sufficient working capital to cover the maximum bond amount and check its history for past problems.

The bond functions similarly to a person’s credit score. If a broker has a history of multiple claims or past unpaid claims, the surety company might deny the application for the BMC-84 bond. If it does agree to move forward with issuing the bond, the freight broker bond cost will be much higher than if the company had instead established a good operating record.

The principal must pay a percentage of the maximum bond amount upfront to secure the bond. This cost might range from 1% of the total bonded amount for freight brokers with good credit and reputations to 15% for those with poor credit or with marks on their records.

Freight broker bonds expire, but they can be renewed. Since a freight broker must also renew its operating authority annually with the FMCSA, it must maintain its surety bond and renew it if it is getting ready to expire. A surety company can also terminate a bond when the principal has unpaid claims and refuse to renew it.

While freight broker bonds are not insurance and do not protect your business, they are a necessary part of operating a freight brokerage in the US. You cannot secure or renew your operating authority to broker freight between shippers and carriers within the US without having a valid freight broker surety bond.

Since your history with your bond could potentially harm your business reputation and your ability to continue operating, it is critical for your company to establish a good record and to meet its obligations if any claims are filed against your surety. Establishing a good history by complying with the law and meeting your contractual obligations can help your business to be more successful.

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Archives, Global Logistics, Global Trade Daily, Trucking

5 Steps Trucking Employees Should Take When Involved in a Truck Accident

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As a trucker, safety is your number one priority. When an accident happens, there’s a lot to consider. 

How do insurance claims work? Who is liable? Who will pay for your medical bills? When can you return to your job? It’s an intimidating situation, to say the least.

As a Houston truck accident lawyer and head of my own personal injury firm for over 20 years, I’m here to give you the details. Below you’ll find the steps you need to take for a smooth recovery—physically and financially.

Truck Accident Liability: Who’s At Fault?

The basis of every personal injury case is simple: someone’s negligence hurt someone else. The negligent person is known as the “liable” or “at-fault” party.

In truck accident cases, there could be multiple liable parties and multiple insurance companies to deal with. The goal of a truck accident lawyer is to determine which parties should be held responsible for an injured victim’s losses and expenses, and then pursue maximum compensation from all the available sources.

So who is liable for a truck accident? 

In general, trucking companies are responsible for accidents caused by their drivers as long as the driver is “on the clock” at the time of the accident, acting “within the scope of employment.” Exceptions to this rule include: 

-if the driver was an independent contractor

-if the driver intentionally caused the accident

-if the driver was given a ticket

Were you given a ticket at the scene of the accident? You’re more likely to be placed at fault if you broke the law by speeding, driving under the influence, or violating company regulations, just to name a few possibilities.

If you were employed by a company, the injured victim(s) will probably go after your employer, not after you individually. This is because trucking companies tend to hold commercial insurance policies with higher payout limits.

There are many ways a trucking company could contribute to an accident. For example, did these employers fail to properly service their trucks? Did they set unreasonable goals for their truckers, forcing them to drive in unsafe conditions or exceed federal restrictions for the number of driving hours? Did they hire irresponsible drivers without doing background checks? Did they fail to provide proper training? There are a ton of possibilities, and a truck accident lawyer will investigate them all.

Here are other potentially liable parties in a truck accident:

Other Motorists

Drivers in smaller cars can cause trouble for big trucks. Did an aggressive driver cut you off? Did traffic come to a sudden standstill? Many factors come into play here.

Truck Manufacturers

Auto parts manufacturers are responsible for producing safe vehicles and parts free of defects. If a faulty auto part causes an accident, the manufacturing company may share the blame for the accident. Truck accident lawyers, crash reconstruction experts, and investigators can help you get to the bottom of this.

Fleet Mechanics

Fleet mechanics conduct routine inspections on trucks to ensure they’re safe to take on the road. If a mechanic fails to notice a problem that later causes a wreck, it can quickly turn into a matter of life and death! They could potentially be liable for accident-related damages.

Whoever Loaded the Truck

Did cargo fall off of the truck and cause an accident? Did the shifting weight of an unsecured load contribute to a rollover? In scenarios like these, it’s important to find out who loaded the truck and what company they worked for. Shippers and loaders may be held responsible for any accidents related to unsecured cargo.

Remember: truck drivers are protected from retaliation under federal law. You cannot be fired for reporting hazardous working conditions to the Occupational Safety and Health Administration (OSHA). If you notice shady practices, speak up. You could save a life.

Other Common Causes of Houston Truck Accidents

Speeding

If you need to meet a particularly tight deadline, you may be tempted to go over the speed limit. Don’t press your luck. “Failure to control speed” was a factor in more than 113,000 auto accidents in Texas last year. 475 were fatal.

Distracted Driving

This is a broad category: snacking, checking a map, talking on the phone, you name it! Always remember to check your blind spots, and never engage in any behavior that takes your hands off the wheel, your eyes off the road, or your mind off of driving.

Fatigued Driving 

Unfortunately, exhaustion is a common issue among long-haul truck drivers. That’s why the FMCSA wants you to keep your logbooks up-to-date and allow for adequate break times. Did you know drowsy driving is just as dangerous as drunk driving? Speaking of…

Driving While Intoxicated

In 2020, there were 75 fatal DUI accidents in Houston alone. Drunk driving contributed to an additional 2,280 accidents in the city. Trucking companies are supposed to conduct routine drug tests, but they don’t always follow this rule. Never turn to alcohol or drugs to cope with the stress and monotony of long journeys. 

Mechanical Problems

Tire blowouts, faulty brakes, and shifting cargo can all cause problems for large trucks. This is why they require thorough routine inspections. Trucking companies are responsible for conducting these inspections and properly maintaining their fleet in order to keep everyone on the road safe and sound.

Environmental Factors

Even if you’re a safe and responsible driver, you may be unlucky enough to encounter roads with sudden or sharp curves, unexpected debris, or bad weather conditions like wind and rain. All of these increase the likelihood of a truck accident.

What Do I Do After a Truck Accident?

Now you know who might be liable for a truck accident, but how do you prove it?

After any accident, follow these steps:

#1. Call 911 

Truck accidents often leave devastating injuries in their wake. Even if no one seems injured, you still need to call to report the accident, and the police need to visit the scene so they can create an accident report. 

Note: Texas law requires you to report any auto accident that involves injury, death, or more than $1,000 of property damage.

In addition to a police accident report, your company should have established a process on how you can create your own accident report. Your report will include as many details as possible, such as the date, time, weather conditions, and location of the accident, and contact information and insurance information for anyone else who was involved. Do not leave the scene of the accident until an officer instructs you to. 

#2. Exchange Info and Collect Evidence

Stop and exchange contact info and insurance info with everyone involved. Carefully take photos of the vehicles and surrounding area. Don’t make a statement, don’t admit fault, and don’t speculate! It sounds easy enough, but when you’re nervous and stressed, you may say things that will harm your claim.

It’s important to preserve all evidence as soon as possible. Truck accident lawyers know how to track down every bit of available evidence, such as:

-Photos of the accident scene and damaged property

-Eyewitness testimony

-Police reports (Note: police reports don’t always determine fault, and when they do, they aren’t always 100% correct.)

-Truck black boxes (These devices record info like the speed at which the truck was traveling, how long the driver was on the road, and when they used their brakes.)

-Dashcam footage or other surveillance videos

-Logbooks and trucking company records

-Cell phone records

-Medical records

Subpoenas allow your truck accident attorney to access trucking company logbooks, truck GPS system records, the black box, cell phone records, and more. These sources provide valuable supporting evidence for your Houston truck accident case, helping you maximize your settlement.

#3. Go to a Doctor ASAP

After a truck accident, prompt medical care is important. Even if you weren’t whisked away in an ambulance, you need to see a doctor and follow through with any recommended medical treatment. 

The treatment process uncovers details about injuries you suffered in the crash and how they’ll change your daily life. When accident victims try to ignore their aches and pains, the results are never good. Sometimes, symptoms of serious injuries don’t appear until days after the accident. Additionally, insurance adjusters will use any “gaps in treatment” to deny your claim. Don’t delay.

Lawyers have networks of doctors, therapists, investigators, and other experts. Together, they collaborate on cases and help injured victims recover. Whether you need x-rays, physical therapy, a rental car, or all of the above, we’ve got you covered. Best of all, you won’t pay a cent out of your own pocket. Thanks to liens and letters of protection, your lawyer can coordinate payment with various providers via a portion of your final truck accident settlement. You won’t have to worry about following up and settling these bills—that’s our job, too!

#4. Report the Accident, But Never Give A Recorded Statement

If you are working for a trucking company, they should provide you with insurance coverage, but you’ll still need to call and report the accident. Proceed with caution! Insurance adjusters might act friendly, but they’ll twist your words and accuse you of exaggerating your losses. They’ll ask you for a recorded statement, and anything you say can—and will—be used against you! 

There is no obligation to provide a recorded statement to the insurance company. 

Bottom line? Don’t let anyone pressure you. Your best option is to direct all further communication to your truck accident attorney. Insurance companies aren’t on your side, but a truck accident lawyer can be a vital ally against them. Let us protect your rights and your finances.

Most accident claims settle out of court during the negotiation phase. However, if you cannot reach an agreement even with the help of a mediator, you’ll move on to litigation.

#5. Contact A Local Truck Accident Lawyer

Most Houston truck accident lawyers work for a contingency fee. This means you pay nothing upfront and nothing at all unless you win; payment is entirely contingent on the success of your case. Put simply, we don’t get paid unless you get paid! Legal fees are taken from a percentage of your final settlement award. This percentage is usually discussed during your initial consultation, and this arrangement ensures the lawyer’s goals are aligned with your goals.

Houston Truck Accident FAQ

Will I Get Penalized for a Truck Accident?

All commercial truckers need a  Commercial Driver’s License (CDL.) Since your CDL is regulated by the Federal Government, fines and other punishments may be stricter for you than for the average person.

Additionally, you will have to undergo drug and alcohol testing soon after the crash. Bad results could get you fired on the spot. Your license may even be revoked, preventing you from continuing in the trucking industry. 

Having an accident doesn’t always mean you will be fired, but keep in mind your driving history and criminal record may be checked. Further, the Federal Motor Carrier Safety Administration (FMCSA) states that each motor carrier shall conduct an annual inquiry/review of the driving record for each driver under their employ, where they’ll see any “points” on your license. If you have more than one accident on your record, it will be tough to find another truck driving job.

What if I’m Partly at Fault for the Truck Accident?

Texas is a “proportionate responsibility” state, so even if you’re found partially at fault for a truck accident, you can still recover damages. You just have to be less than 50% at fault. Reach out to a Houston truck accident lawyer for more info on how fault is determined.

Who Can File A Wrongful Death Claim in A Fatal Houston Truck Accident?

The Texas Wrongful Death Act allows certain relatives to pursue compensation if they’ve lost a loved one in a truck accident. The surviving spouse, children, or parents of the deceased victim can sue for the damages and suffering associated with the loss of their loved one. They can file the claim either individually or together as a group. If no one files within three months of the date of death, a representative of the estate can file on their behalf.

What Are My Potential Damages? 

The money you collect from a personal injury claim is known as your “damages.” Damages are divided into different categories.

Economic Damages 

Economic damages include things like property damage and medical bills. The exact amounts of these losses and expenses are easily proven with copies of your bills and receipts. Additionally, if you had to take time off work while recovering from your injuries, you can be compensated for your lost wages. This can be done by providing past pay stubs, timesheets, and/or a statement from your employer. If your injuries are severe enough to permanently change the course of your career, your lost earning capacity will be included in your damages as well. Sound confusing? Don’t worry; a lawyer can help you keep track of everything.

Non-Economic Damages

Non-economic damages refer to more abstract losses like your pain and suffering. In addition to being emotionally distressing, your Houston truck accident might cause you to miss important events, quit your hobbies, or leave you unable to support your family. PTSD symptoms like insomnia and anxiety would also be included under pain and suffering.

Punitive Damages

A third category known as punitive damages applies only in scenarios where the at-fault driver was particularly reckless. (For example, if the other driver was arrested for drunk driving at the time of the crash.) Punitive damages exist to punish the at-fault driver for bad behavior and discourage others from being negligent.

When Should I Hire A Truck Accident Lawyer? 

When should you hire a Houston truck accident lawyer? 

As soon as you can! 

It may shock you to hear all truck accident cases have a time limit known as the statute of limitations. This differs from state to state, but the statute of limitations in Texas is two years.

Two years seems like a long time, but your team will need time to investigate and compile evidence. The countdown starts the moment your accident happens. If you don’t take action before the deadline, the case may be thrown out entirely. Protect your rights by contacting a truck accident lawyer.

Still Lost? Free Consultations Available Now

Handling a truck accident case is a full-time job. Don’t do it alone. Let an experienced Houston truck accident lawyer handle the messy details while you focus on what matters most: your health and recovery.

Since they’re well-versed in commercial trucking regulations and industry standards, truck accident lawyers can help you secure way more compensation than you ever could alone. Entering the showdown alone could mean you miss out on thousands or even millions of dollars of a truck accident settlement.

Don’t miss out on the money you need. 

Get a free case evaluation from a Houston truck accident lawyer today!

Archives, Global Trade Daily, News

Chapman Freeborn South Africa Flies 10 Cars to Malawi for the SADC Summit

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In August, Chapman Freeborn South Africa transported vital cargo from Johannesburg International Airport (JNB) to Lilongwe International Airport (LLW) ahead of the 41st SADC Summit.

The SADC Summit is an important event during which the Southern African Development Community gather to discuss policy direction of the 16 member states. The cargo comprised of 10 vehicles which were urgently required to provide transportation during the Summit, and the operation required excellent cooperation and efficiency to ensure they arrived on time.

Chapman Freeborn Cargo Charter Manager Africa, Gerhard Coetzee, worked in conjunction with the client, Imperial Clearing and Forwarding South Africa Pty Ltd, to find a suitable solution in the shortest possible timeframe. He arranged for the vehicles to be transported on a Boeing 777-200F on a part-charter to Malawi, and the operation went to plan with the cargo arriving on schedule for the Summit.

Abhilash Kunjupilla, Operations Director at Imperial Clearing and Forwarding South Africa Pty Ltd, said “It was once again a pleasure working with the team at Chapman Freeborn, their ability to create innovative solutions at very short notice as well as still maintaining the level of service is impeccable.  My team and I are always able to rely on the consistent service from you.“.

The Chapman Freeborn Cargo Team has over 45 years of experience and work with clients all over the world to arrange delivery of their time-critical cargo. From automotive components to energy industry structures to life-saving humanitarian aid, Chapman Freeborn will ensure your shipments reach their destination on budget and on schedule.

Get in touch with the team today by emailing cargo@chapmanfreeborn.aero to discuss your requirements.

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3pls, Archives, Global Logistics, Global Trade Daily

Proven Ways to Grow your Freight Brokerage Business

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A quick look at the current shipping industry will show you that there is no shortage of freight brokerage businesses. Numerous companies offer their services all around the world, with various degrees of quality and cost. So, among all that competition, is there a way for you to grow your freight brokerage business? The short answer is yes, there is. But, like with most things in freight shipping, it is not going to be easy.

Understanding the ongoing changes in the freight industry

Growing your freight brokerage business is a multilayer process that we will elaborate on in the following passage. But before we do, it is important to give you a perspective of what the current shipping industry is like. Even before COVID-19 hit, the shipping industry as a whole was experiencing some significant changes. So, while we will go over the most notable aspects, keep in mind that these are just some broad strokes. Technological advancements, both in logistics and in shipping capabilities, came as quite a surprise.

Developments in AI allow for a much greater sense of efficiency and safety, which is why future freight companies won’t be able to stay competitive without it. Eco-friendliness is also a significant concern as fossil fuels tend to be the least-favorite choice among the current companies. We are still far from relying solely on renewable energy sources, but energy development is going in an eco-friendly direction. The final point to keep in mind is that modern customers’ demands are higher than ever. Due to offers like overnight shipping, customers have grown to expect a high degree of service. So, if you are going to stay competitive, you need to ensure top efficiency.

Grow your freight brokerage business – step by step

Seeing how big the freight shipping industry is and how many emerging technologies there are, you shouldn’t try to tackle all of it. The safest way to grow your freight brokerage business is to outline a particular aspect of freight shipping and excel at it.

Step 1: Identify your target audience

Who your target audience depends on numerous factors. Your location, which services you have available, which industries are predominant in your area, etc. If you wish to grow your freight brokerage company, your primary job is to first outline your target audience. The clearer you can pinpoint to whom you can cater your freight brokerage service, the better. Seeing that finding new customers will likely be an ongoing task, we suggest that you outline the “Ideal customer”. That way, your employees can more easily identify potential customers.

Step 2: Outline their needs and requirements

The second step you need to take is to clearly outline the needs of your target audience. You will likely have an idea of what they need. But you won’t have the complete picture until you start doing research and asking questions. Most agents will be more than happy to outline their needs and whether the current provides are satisfactory. Some might even give you ideas on which services are most lacking and where you can easily get ahead of your competition.

Step 3: Improve your technology so that it can facilitate the needs of your customers

Once you understand the needs of your audience, you need to alter your company so that it can best fulfill them. By this, we mean implementing new technologies that allow for more efficiency. Apart from logistics technologies, you can look into CRM solutions and communication technologies to help your customers more expediently.

Step 4: Tackle marketing with due care

One of the common mistakes people make in the freight industry is not tackling marketing with enough vigor. Believing that having a simple website or running a social media profile is enough for a serious company is something you ought to avoid. To draw in and keep your audience, you need to run an active website. This not only means tackling your SEO and posting the necessary blogs. But also managing your social media and ensuring that you have the proper brand recognition. Good freight brokers know that projecting an idea of efficiency and stability is essential to drawing in new customers. And the only way to make that possible is to adapt your online presence to your needs and ensure that your marketing is on point.

Step 5: Set up performance metrics and keep track of your endeavors

Finally, to ensure that your effort produces results, you need to set up performance metrics. Besides measuring how many new customers you get each month, you also need to track how effective your marketing is. Even in B2B marketing, you need to invest substantial funds to develop an online presence. So, do yourself a favor and ensure that your investments are paying off. By setting up clear performance metrics, you can see how your business decisions impact your revenue and whether you need to make any alterations.

Final thoughts

The main point to keep in mind to grow your freight brokerage business is to stay within your niche. The better you can outline what your target audience needs, the easier it will be to make cost-effective business decisions. If you manage to become the top local freight brokerage business within an area, we are sure that you will have no problem spreading your business out to other areas. But, it is essential to develop a healthy base and a firm understanding of what your customers need. Modern industry requirements don’t allow you to spread yourself too thin. Doing so is not only ineffective but is likely to cause you substantial loss in revenue. And seeing how fierce the competition is, it has become more important than ever to excel within a relatively small niche.

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Ryan Smith has worked as a shipping manager and a logistics consultant for over 20 years. He now focuses on writing helpful articles for tbmoving.com and other relocation and shipping companies, as well as providing consultation for large-scale logistics planning.

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Archives, Global Trade Daily, International Trade

5 Ways to Ease Canadian Supply Chain Pain

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Canadian businesses are facing a painful dilemma as they enter the second half of 2021.

A study released by the Bank of Canada in early July shows business confidence has soared across the country as vaccination programs have rolled out and reduced restrictions on public movement. Business leaders reported strong sales outlook, unprecedented levels of planned hiring and plans for greater investment. In fact, the monetary policy overseer’s quarterly survey showed confidence at its highest level since 2003.

There is good reason to be buoyed about the future. Canadian consumers have saved an estimated $220 billion during the pandemic that they are now looking to spend. Another Bank of Canada survey showed near unprecedent intentions amongst consumers to spend their savings once the economy opens. That is the good news.

The bad news is retailers, wholesalers and service-sector businesses reliant on the movement of goods are also facing unprecedented supply chain woes. Shipments of goods critical to the success of these businesses have been delayed by months due to backlogs at ports in Asia stemming for a global container shortage. In its survey, the Bank of Canada found 60% of businesses would have some difficult or significant difficulty meeting demand if there was a sudden increase. Commodity prices have soared to their highest levels since 2014 while factory-gate prices in China – where many manufactured goods are produced and exported to Canada – witnessed a year-over-year increase of 6.8% in April 2021. Shipping costs from China to the coast of British Columbia have tripled.

‘Just in Case’ Becoming the Norm

The delays and escalating costs of shipping are prompting businesses to stockpile inventory at rates not seen in recent years. The just-in-time supply chain model that has characterized the movement of goods throughout most of the 21st century is now being traded in for a just-in-case model. But the market has responded accordingly with warehouse lease rates up 25% and warehouse availability almost non-existent with little new capacity slated in the near term. In some cases, businesses have had to invest far more heavily in warehousing than they had planned when inventory arrived at port on time, along with delayed inventory and the oversupply that could not be contained within existing warehouse space. In addition, fiscal stimulus programs have tightened the labor market, driving down labor availability and driving up labor costs.

All the added expense is fuelling concerns about inflation as businesses pass down the additional costs to consumers. A spike in inflation could dampen consumer demand, which would then resolve the supply chain woes, but would also stagnate economic recovery. This leads to the greater challenge of whether to plan for a consumer boom or a more temperate market.

What is a Business Decision Maker to Do?

As the old saying goes, necessity is the mother of invention. Businesses have been finding creative solutions to supply chain problems as they have arisen – from alternative transport routes and methods to new suppliers and even alternative materials to build their products.

The reality, however, is there is no one-size-fits-all solution to the supply chain woes being faced by Canadian importers. Solutions will vary based on industry, pain points, sourcing markets, ports of entry and several other factors.

Gain Visibility: One of the key actions being taken by businesses is digging in to learn more about their suppliers’ suppliers. Doing so allows them to better identify potential disruptions where materials may be scarce, or transit routes are congested.

Call for Backup: Even businesses that have reliable suppliers should consider finding alternative sources of supply and ideally from a different country. In most cases, delayed supply is the result of congested ports or a regional dearth of cargo container availability. Finding backup suppliers in other markets means not only having an insurance policy for supply but also for transport.

Make Accurate Supply Projections: It is a tall order to know how consumers intend to spend in the wake of a global pandemic. But businesses that use analytics to gauge future demand will suffer fewer supply chain headaches as they will be able to plan better for anticipated inventory arriving from overseas.

Secure Freight: Cargo capacity is at historic lows as businesses around the world fight for space on ocean freighters. Even inland transport has become challenging. For businesses that have not secured space, finding available transport can be near impossible. Working with a freight forwarder can help not only to identify available capacity but also to secure space for future supply. This is particularly true for businesses that have a stronger gauge of upcoming demand.

Lower Landed Costs: Businesses searching for alternative suppliers can often find cost savings by leveraging free trade agreements to reduce duty outlay. Canadian businesses may find refuge in trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which gives importers free trade access to markets like Vietnam and Singapore. Other opportunities may be found with suppliers in Europe via the Comprehensive Economic and Trade Agreement (CETA). Of course, Mexico is a viable alternative to sourcing in Asia and is party to the recently enacted United States-Mexico-Canada Agreement (USCMA) that replaced NAFTA. Using Mexico could also remove the need to use ocean freight where congested ports are forcing weeks-long delays to bring goods to market.

When will it End?

Canadian importers are anticipating the day when business can get back to normal. After years of uncertainty over the fate of free trade in North America, conflicts with the U.S. over steel, aluminum, and lumber, and conflicts with China over agricultural goods, there is a desire to see things stabilize. The reality, however, is that Canadian importers will have to compete with their counterparts in the U.S. and other markets with recovering demand for cargo space. While more containers are being brought online, the shortage is anticipated to continue into the early part of 2022 or even later. That means rates will remain high for the foreseeable future, particularly for Asia-origin goods moving to North America’s west coast.

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Michael Zobin is a Canada-based director of global trade consulting at Livingston International. His expertise includes supply-chain optimization; duty deferral and drawbacks; conducting compliance program reviews; developing compliance procedures; voluntary disclosure; and post-entry review.

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Archives, Global Logistics, Global Trade Daily, Trucking

DESPITE MANY CHALLENGES, TRUCKERS ARE KEEPING THE SUPPLY CHAIN MOVING. HERE IS HOW.

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Of all the lessons learned from the pandemic, the critical role of supply chain workers remains among the most significant. Simply put, without the people keeping things moving, the supply chain suffers. Truckers are among supply chain workers who represent industry resilience, ensuring deliveries and shipments are fulfilled before, during and after COVID-19. 

However, protecting truck drivers has become less of a thought and more of a formality in the new normal. We looked to Avi Geller, CEO and founder of Maven Machines, to give us an idea of exactly how truck drivers are handling the new logistics climate and what companies can do to further protect, support and retain their workers. 

“The pandemic has had a substantial impact on the trucking industry, requiring fleets to accelerate digital transformation efforts like the widespread adoption of data and AI-based technologies,” Geller said. “Increased demand since 2020, coupled with an ongoing driver shortage, has forced fleets to reevaluate processes, plans and current levels of efficiency. Route optimization and planning technology can automatically provide managers with the best possible plans by considering variables such as traffic, road quality and weather. As route optimization tech becomes more advanced, driver preferences and proficiencies can also be taken into account as variables in machine learning algorithms.”

Geller goes on to explain that in 2021, the stakes are higher than ever before. Companies no longer have room for error when it comes to compliance and transport conditions. And with the surge of demand in pharmaceutical transportation for the COVID vaccine, the transportation sector is under even more pressure to quickly deliver vaccines at accurate temperatures while keeping employees safe. Utilizing technology solutions to keep up with demand and meet shipment requirements will be a significant game-changer for many. 

“Companies must ensure that their drivers adhere to compliance mandates and delivery timelines,” Geller observes. “For instance, COVID-19 vaccines require super cold storage temperatures. Drivers carrying vaccines must follow the appropriate shipping protocols and reach their destinations on time to prevent costly disruptions to the super cold supply chain. More than ever, drivers are relying on fleet management software to increase productivity and using route optimization and workflow technologies to their advantage.”

If retaining drivers was not already an issue, recruiting qualified drivers continues to be a pain point for the trucking industry. And with COVID-19 now in the mix, fleet managers are seeing more of their drivers leaving and a shortage of talent to quickly replace them.

“The trucking industry’s largest challenge today is the shortage of qualified drivers,” Geller says. “We cannot afford to lose drivers, but more are leaving the field than we are able to replace. We need to continue to find ways to revitalize the driver workforce and encourage people to join the profession. The pandemic has only highlighted our dependency on these employees, who are some of the economy’s most essential workers.”

Geller reiterates the importance of providing drivers with an experience that stands out from competing sectors, including providing accommodative tech solutions to minimize redundancies and maintain driver safety as a priority instead of an afterthought.  

“To stop the driver attrition and attract more drivers, fleets must prioritize the driver experience—and the right technology can help them do so,” he says. “Route optimization, ELD, and fleet workflow software foster a safer, more productive work environment by providing drivers with the fastest routes, automating the most tedious tasks, ensuring compliance, and presenting stop-based forms and step-by-step workflows that help them progress smoothly through their assigned trips and ETAs. By better positioning drivers for success, fleets can improve driver satisfaction and give drivers opportunities to be rewarded with pay increases and safety bonuses, which could lead to increased driver recruitment and retainment.

Streamlining operations and communications in the new normal is simply not an option for companies that want to last. The phases of adaptation are behind us.”

Those companies that are left standing in 2021 must continue to advocate for workers while providing a competitive edge for customers through the effective use of technology and automation. Geller’s company, Maven Machines, puts drivers first with their specialized and tailored solutions that optimize operations starting at dispatch all the way through.

“Maven Machines provides fleets with solutions that increase efficiency and elevate their drivers’ work experiences,” he says. “Our solutions for dispatch, route planning, workflow, ELD and fleet management software facilitate driver and trip management while also meeting each fleet’s unique set of operational needs. By eliminating outdated legacy solutions and processes, we are helping to increase fleet success, including driver performance.”

Among the applications tailored specifically for drivers are large, color-coded buttons, alerts, document imaging tools and other utilities that drivers can rely on for communications. Geller states that this technology provides a safe, reliable way for drivers to focus on driving and still manage communications expectations.

“A streamlined messaging system for drivers to communicate with managers, along with other smart features and intuitive user interfaces, keeps drivers safe, on task and satisfied. The driver experience is important, and we’re proud to support drivers with our software.”

For every company, the customer comes first (after the workers, of course). It is important to ensure your solutions portfolio is flexible, adding to the customer experience instead of further complicating it. Maven Machine’s adaptable solution provides solutions for different customer requirements.

“Different customers require different processes, so our flexible Maven Workflow solution takes that into account and provides drivers with the right workflow for their stops and trips,” Geller says. “It is a game-changer in terms of driver productivity. Our dispatch and route optimization software provide drivers with the fastest and safest routes so that they can make more on-time pickups and deliveries. With Maven ELD, drivers use a simple mobile HOS app that allows for faster log editing, helps them reduce HOS violations, and ensures FMCSA compliance.”

In conclusion, providing a safe, reliable, and pleasant experience for drivers and customers is not a new concept. Some would argue that it has always been a priority while others claim it took the pandemic to bring back the saying that when you take care of the workers, they take care of business. 

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Avi Geller is the founder and CEO of Maven Machines. Since 2014, he has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but he started Maven in Pittsburgh, Pennsylvania, due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi has an engineering degree from MIT and an MBA from Northwestern University.

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Archives, Global Logistics, Global Trade Daily, Imports/Exports

Eliminating Non-Dutiable Charges from Customs Value

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Similar to how taxable income is a primary element to determining income tax, the customs value is used to calculate duty liability. To determine an accurate customs value, companies must factor in certain dutiable additions and non-dutiable deductions. In today’s high-tariff environment, maximizing every deduction is critical and many importers are leaving money on the table. 

For U.S. importers using transaction value, which is “the price actually paid or payable for the merchandise when sold for exportation to the United States,” the focus is often on validating that the enumerated additions to the price are properly declared to U.S. Customs & Border Protection (CPB). While this is a necessary step for maintaining compliance, trade teams should also consider whether they may appropriately deduct or exclude certain charges. 

Historically, these savings opportunities have not been fully explored because the resources required to sustain some of these programs exceeded the savings. However, with the Section 301 tariffs in place for China-origin products, many companies are paying significantly more in duties. Removing these non-dutiable costs can provide substantial savings–making it worth taking a second look at them for many importers.

Eight Overlooked Non-Dutiable Charges

For importers using transaction value, the following savings opportunities should be considered. While some of these programs provide ongoing savings and some are only used in specific circumstances, they all may play a role in reducing the tariff spend. 

1. Freight and Insurance

Foreign inland freight, international freight and insurance costs may be deducted from the transaction value if you meet certain requirements. More specifically, with accurate incoterms and supporting costs and documentation, this can provide long-term cost savings. Importantly, importers must verify that they are deducting the actual, not estimated costs, and that the supporting documentation is adequate. While the requirements around deducting these costs may be daunting, the advances in technology make freight deductions more approachable than ever.

Further, insurance costs may be deducted from the entered value when they are separately itemized and the actual costs (not estimated) are claimed. It is important to verify with sellers that they are providing actual costs because CBP will reject deductions based on estimates, even in cases where the importer paid more than it claimed on the entry.

2. Supply Chain (“Origin”) Costs 

International transportation costs typically include certain other fees, often referred to as “origin costs.” In many cases, CBP considers these origin costs to be “incident to the international shipment of merchandise” and, therefore, possibly excluded from the customs value. Examples of these charges include security charges, documentation fees, and logistics fees. 

On a per-shipment basis, these miscellaneous fees may appear insignificant. However, on an annual basis, they can result in a significant expense for the company by driving up duty payments. As a general rule, the importer must deduct the actual costs, validate that commercial documentation meets all requirements and understand where services are being provided. However, once these steps have been taken, it is likely that little additional work will be required to realize ongoing savings.

3. Warehousing Costs 

CBP has found that warehousing costs paid by the buyer to third parties are not included in the price actually paid or payable of the imported merchandise. However, CBP has distinguished this scenario from instances where the seller, or a party related to the seller, provided this same service and the warehousing costs are included in the price actually paid or payable. In that case, those payments were found to be dutiable and may not be deducted. 

For importers interested in using this opportunity, a careful review of payments and terms of sale should be conducted to validate that the transaction meets all of CBP’s criteria prior to taking this deduction.

4. Inspection or Testing Fees

Often before shipment, an importer will arrange for products to be inspected or tested to validate it satisfies a buyer’s quality standards. Under certain conditions, these fees may be excluded from the dutiable value in instances when they are made to third parties unrelated to the seller of the goods. 

It’s also important to understand that testing that is “essential to the production of that merchandise” is dutiable. In such cases, CBP would consider payments to unrelated third parties for these services as assists that are part of the transaction value. For importers who rely on the seller to perform inspection or testing services, an analysis should be conducted to assess the ROI for engaging a third party to perform these services.

5. Latent Defect Allowances

In certain circumstances, importers may be able to reduce dutiable value post-importation based on repair costs attributable to manufacturing or design defects. For importers with high-value products, such as those in the automotive industry, repair costs can be substantial and this allowance in value provides an opportunity to manage those costs by reclaiming duty. 

With proper planning, a program can be implemented to help ensure the importer does not overpay duty on goods that were defective at the time of import. While there are a number of requirements that must be satisfied to receive a duty refund, high-value importers should explore whether this may be an opportunity for them.

6. Instruments of International Traffic – Reclassification of Packaging

In certain cases, pallets, cartons, hangers and other packaging material may be considered instruments of international traffic (IIT), exempting them from duty. To qualify as an IIT, CBP has determined that the article must meet criteria, including that it is “substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic.” Further, the article must be used in commercial shipping or transportation more than twice to qualify as an IIT. 

For importers whose supply chains include the reuse of certain containers or other materials used to transport international goods, it may be valuable to assess whether these goods qualify as IIT and are, therefore, duty-free. 

7. Post Importation Price Adjustments

When companies make post-importation price adjustments they may be entitled to a duty-refund on the amount adjusted. This typically occurs when downward transfer pricing (“TP”) adjustments are made between related parties, causing a reduction in the products’ customs value. 

For companies that routinely make retroactive transfer pricing adjustments, having in place the documentation to support a refund can have a powerful impact on duty spend.

8. Taxes and Other Fees

Companies may be entitled to deduct Value Added Tax (“VAT”) or Goods and Services Taxes (“GST”) from the declared value of the imports when these payments are refunded. Not only should importers maximize their refunds where possible, but in doing so they open another opportunity for savings. When VAT is remitted by the U.S. importer to the foreign seller, separately identified and refunded to the importer, then the refunded amount is not included in transaction value.

Importers should team with their tax departments and foreign suppliers to understand if VAT refunds are obtained and create documentation that reflects separate itemization of the refunded VAT.

The Big Picture

Potential cost savings through the reduction of non-dutiable charges from the dutiable cost basis of imported goods are often overlooked. However, in this high-tariff environment, these programs can help companies easily achieve cost savings. 

Additionally, with advancements in technology, managing these programs is more straightforward than it used to be. 

Of course, like with any duty-savings program, strong controls must be implemented to preserve compliance. However, as it is likely that steep tariffs will be in place for some time, companies should evaluate which of these programs can help reduce costs, potentially improve the return on investment and then develop an implementation roadmap.

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Andrew Siciliano is a Partner and U.S. Trade & Customs Leader at KPMG LLP. and Elizabeth Shingler is a manager at KPMG’s Trade & Customs Practice.