Amazon Air Launches Daily Cargo Service at Pittsburgh International Airport

May 21st, 2021 Sydney Barnes Leave a comment

On May 12, Amazon Air touched down at Pittsburgh International Airport for the first time, adding Pittsburgh to Amazon’s expanding U.S. cargo network. Amazon’s collaboration has been the biggest cargo win for the growing airport. Amazon Air packages will arrive Wednesday at Pittsburgh via a Boeing 737-800F freighter and depart Thursday morning.

Amazon Air has quickly grown to increase speed and selection for Amazon customers around the country, now flying to more than 40 United States airports. The new operation in Pittsburgh will allow Amazon to supply a growing logistics network in Western Pennsylvania. The partner lease agreement allows Amazon Air to use 50,000 square feet that include an onsite area to sort packages to their next destination managed by an Amazon logistics partner, Trego-Duncan Aviation. The new site is expected to create more than fifty new jobs.

Pittsburgh International Airport CEO, Christina Cassotis shared her excitement about the Amazon Air operations, she said, “We are excited that Amazon is continuing its investment in the region with the addition of Amazon Air operations at our airport, we welcome Amazon Air and look forward to building our partnership. This announcement is a major milestone in positioning PIT as an international logistics center.”

“Growing the network of sites where Amazon Air flies is essential to supporting fast, free shipping for our customers,” said Chris Preston, Director, Amazon Gateway Operations. “Today, with Pittsburgh International Airport as part of our Amazon Air network, we are closer to our customers and can support fast shipping for the items they rely on. We are proud of the investments Amazon has made in the Pittsburgh region and look forward to continued growth.”

In Regions like Western Pennsylvania cargo services great economic benefits due to the downstream economic impacts, including handling companies and trucking. Pittsburgh’s abundant space is the ideal geographic location that makes the perfect business plan to turn the airport into an international logistics center. Other than Amazon Air, Pittsburgh International Airport has also supported Finnair and Qatar Airways causing huge success.

“We are delighted to welcome Amazon Air to Pittsburgh. To have a major logistics company like Amazon locate here reflects confidence in our region and the opportunities at the airport,” said Allegheny County Executive Rich Fitzgerald. “This development, along with Finnair’s announcement, really underscores the fact that Pittsburgh is becoming a significant cargo and distribution hub.”

Pittsburgh is excited about their new collaboration with Amazon Air, they look forward to the possibilities Amazon Air will bring to the growing economy.

Air Cargo, Archives, Global Logistics, Global Trade Daily

Air Passenger Travel is Climbing, so is Capacity Relief on the Way?

April 22nd, 2021 Matt Castle Leave a comment

A new era of air transportation trends is emerging to create a confusing outlook for shippers.

Air freight has been in nonstop peak-season mode despite pandemic-induced capacity decline, while other disruptions, such as the Suez Canal blockage, drove even more demand to air. This is all happening while the Transportation Security Administration is reporting a 1000%+ increase in passenger travel in April 2021, compared to April 2020, with the vaccine fueling hopes of getting back to a sense of “normalcy.”

Though vaccine distribution is increasing, and we are seeing a spike in passenger travel, capacity relief is not on the horizon. Why not? Most current air travel is domestic, meaning that planes are still not populating major global trade lanes.

In fact, numerous commercial flights are being canceled a few weeks before takeoff because passenger demand is not there. For passenger travel to have an impact on air capacity, business travel will need to return to pre-pandemic levels, That’s not likely to happen anytime soon. Right now, cargo is king and leading routing decisions for most airlines.

With this in mind, there are three tactics that you can bring into your shipping strategy to navigate the current capacity constraints in the air market.

1. Prepare for the permanent changes that will impact the future of air travel

While cargo planes and charters seemed like temporary fixes for shippers in a pinch, they’re quickly becoming necessary for the long term. Even with business travel becoming more viable, it is estimated that business travel will not reach 2019 levels until 2025. Plus, tight budgets and the newfound appreciation for virtual communication may keep many international planes grounded.

Therefore, depending on the slight uptick in commercial travel is not wise. Global shippers will need to look at how cargo planes and charters fit into their shipping strategies long term. Finding the correct partners and resources will be more important than ever as these modes of shipping continue to be needed.

2. Flex your creative muscles

Consider the new level of creativity that these air freight challenges are requiring and how you can do things a new way. For example, to get a timely shipment out for a global customer, we removed the seats from a passenger aircraft to make room for important shipments. Additionally, the plane was routed to a non-traditional cargo hub to avoid the additional delays and congestion found at more popular airports.

That may not be the right muscle to flex in your supply chain, but thinking outside the box is crucial. Depending on your goals, the end strategy will look different.

3. Consider using a mix of modes and ensure you have a partner that can accommodate

A mix of modes doesn’t just mean putting things on a ship when there is no room on aircrafts. Sometimes, it means using a mix of transportation modes for one shipment and being flexible to change on a dime. It all depends on your unique situation, but you must be agile and find the right partner to guide you in the correct direction.

We used this strategy on a recent project with Thomas Scientific, a laboratory equipment provider. We helped them work through the extreme ramp up of demand for COVID-19 related items such as masks, gloves, PPE, and testing supplies.

Prior to the pandemic, most of their business was domestic, requiring only a handful of ocean containers each year to accommodate their international shipping needs. However, they faced a sharp increase in demand in 2020 for COVID-19 test kits and needed to develop an international shipping strategy quickly.

Through our global suite of service offerings and information advantage, we worked with them to create tailored solutions to secure the capacity they needed. We focused on a multimodal distribution strategy based on time and needs. Shipments have since gone directly to customers through less than truckload, truckload, ocean, and air charter.

Once inventory levels are stable and demand shifts as we expect it to, we’ll help them move some COVID-19 test kits to ocean. As warehousing space is tight, making this switch will not only promote cost savings, but also help avoid storage backlogs.

Together, we have implemented strategies that have given Thomas Scientific the ability to quickly change directions as needed.

Despite the challenges that are currently present in the air market, rest assured that there are new ways to get creative and work with your logistics partner to create a long-term plan that navigates capacity constraints.

To stay updated on market trends and how they will impact capacity and pricing, visit our Global Forwarding Insights page.

To dig even deeper, connect with a logistics provider.

Archives, Global Logistics Planning Guide, Global Trade Daily

GLOBAL TRADE’S ANNUAL LOGISTICS PLANNING GUIDE PUTS YOU IN THE POWER POSITION AGAIN

February 26th, 2021 Aaron Galer Leave a comment

2020 was a historic year from politics to a pandemic, but professionals working in logistics, in particular, faced huge challenges and had to dramatically pivot their strategies. As 2021 kicks off, professionals working in logistics, notably 3PLs and 4PLs, will need to remain flexible as some of the changes from 2020 are here to stay.

To prepare you for what lies ahead, here are 10 supply chain and logistics trends to watch for in 2021.

1. Shorter Contract Terms

As we all witnessed, capacity was incredibly tight throughout the year, giving carriers more negotiating power for higher rates, especially leading up to the holiday season. Contract trucking rates are heavily influenced by spot market movements so instead of conducting an RFP in Q3 or Q4 for the year (which is typically RFP season) and locking in a yearly rate, shippers created shorter contract terms, hoping rates will improve in 2021. While this helps shippers to lock in rates in the short term (and helps them budget), it is still a gamble because rates could remain steady or increase.

This year, I anticipate that this trend will continue. Shippers and carriers want and need more flexibility in this volatile market. Shippers are hoping for lower rates in the future, and carriers want to take advantage of a hot spot market without rejecting previously contracted freight.

2. Tech Investment for Shippers

Unless new technology investments are truly essential to running the business, many shippers will not be investing heavily into new technology until the pandemic is over. While technology will be a good investment in the long run, it’s often a “want” over a “need,” and it takes a lot of human capital, research, and time to invest in the right technology that will pay off for your business. Right now, every professional working within the supply chain has their hands full running the business, so I anticipate less money and time spent on tech investments in 2021.

While shippers may be hitting the pause button, logistics companies, especially 3PLs, have an opportunity right now to leverage their greatest asset: people. What is most important in our current environment is trusted relationships and human touchpoints. The industry is still scrambling to keep up with the demand for a constantly changing global supply chain, and handholding and relationships will go further than flashy new technology. 3PLs can capitalize on this by spending time discussing with carriers and customers how they can solve their current challenges with best-in-class customer service. If your company is leaning on a new technology or making an investment into this area, this is the year to publicize your innovation widely because there will be less technology noise in the marketplace. Have a technology story that got your company through 2020? Now is the time to tell it.

3. Consumer Buying Behavior Will Remain A Top Stat for Logistics

3PLs are tracking consumer behavior closer than ever. Due to the pandemic, consumer buying behavior changed dramatically, disrupting the supply chain in ways not previously seen. Because of consumers’ impact on the supply chain and demand of freight, 3PLs, in particular, will continue to follow key consumer buying behavior data.

Additionally, in 2021 I expect continued steady growth in-home delivery services (from retailers to foodservice) so all eyes will be on final mile demand. This year, we’ll see more online marketplaces and innovation within final mile delivery. With new companies and offerings entering the industry, 3PLs have an opportunity to forge new relationships and add core competencies with these businesses to gain an advantage over their competitors.

4. Spot Market Will Likely Stay Hot in 2021

We might call 2021 the Capacity Games–may the odds be ever in your favor. Carriers are entering 2021 with negotiating power. Amidst one of the most volatile marketplaces in recent memory, the growing disparity between driver supply and truckload demand has resulted in increasing tightness. When this is the case, we expect upward pressure on truckload rates, just as we did throughout the back half of 2020. We may have hit the peak of inflated spot rates, but with the pandemic still raging, carriers have the upper hand on rates and may decide to take fewer contracts this year to reap the benefits of the spot market. When some form of normalcy does return, we will see another round of shifting capacity and supply chain volatility; 3PLs that can navigate the chaos and guide their customers through it are going to come out on top with relationships and case studies that will speak volumes.

If you’re a shipper or a 3PL, this means you have to think about the whole carrier experience beyond just rates. Carriers want to get paid quickly and treated well, so if the facility they are servicing is difficult to navigate or doesn’t offer any driver amenities, your freight is far less desirable compared to previous years. To entice carriers, shippers and brokers need to be creative, reliable and more than anything, flexible.

5. Carriers Focus On Diversifying Their Book of Business

Prior to the pandemic, most carriers specialized in one or a handful of specific industries. This was a sound strategy because specialization allowed carriers to set themselves apart from the competition by tailoring their vehicles, routes and service to the needs of shippers (who all have different needs, depending on their industry). COVID disrupted this strategy. When the pandemic struck, certain industries completely shut down. From automotive to restaurant services, carriers can no longer focus on one niche industry as the pandemic showed how having all of your eggs in one basket is ripe with risk in these times.

This year, I anticipate more carriers will diversify the industries they support. 3PLs have an opportunity to help and should look for opportunities to offer freight to their trusted carriers who previously may not have considered that type of freight before. By partnering closely with carriers to educate them on the needs of that particular freight and help them enter a new industry, 3PLs will be able to solidify their carrier relationships while also problem-solving for shippers who are desperate for capacity.

6. Reefer Capacity Will Be Tough To Come By

People are still working from home. COVID numbers are at an all-time high, and many cities/states are under curfews and restrictions to discourage people from leaving their homes. But people still have to eat. Groceries stores and food delivery will continue to be in high demand, translating to huge demands on reefer capacity. Add to this the reefer capacity needed to effectively distribute the vaccine and the grip on capacity tightens. This isn’t news. This has been the case since March 2020, but it’s only going to continue.

3PLs have to remain nimble and creative to source reefer capacity and make sure the service they offer those carriers is top-notch to ensure those carriers will continue to partner with them. 3PLs who are able to keep reefer carriers moving and maximize the efficiency of their assets will be the ones who benefit on both sides of the customer/carrier relationship.

7. Regional Distribution

Because of the supply disruptions in 2020, there was a renewed focus on regional distribution. Amazon led the way during COVID, relying on their regional distribution network when drivers were hesitant to drive long hauls far from home. This will continue to be a go-to strategy for many shippers, and I anticipate we will see many retailers investing more into their regional distribution strategy. This shift will create two demands: final mile and long haul. 3PLs that are able to competitively source and seamlessly provide these two modes to their customers at varying degrees of volume will be the heroes of 2021.

8. Opportunities for Mid-Size to Small Carriers To Get Access To New Customers

With the COVID vaccine distribution, many large carriers, seasoned in pharmaceutical freight, have been tapped to move this critical freight which means they will not be able to fulfill previous contracts. So, who is going to move that freight? Mid-size to smaller carriers have an opportunity right now to get in with the companies left in a lurch.

This may not be the strategy for every carrier, but with so much capacity going to the vaccine (as well as all the implementation needed to distribute a vaccine), carriers have an opportunity to service freight previously unavailable to them.

3PLs, keep this in mind. Follow which large carriers are transporting the vaccine and take advantage of opportunities to follow up with their known customers who may be hurting for capacity. While historically technology, integration, volume commitments, etc. were barriers for mid-size to small fleets in providing service to large shippers, 3PL relationships should be providing access to these large customers as need for capacity widens.

9. Relationships Continue to Be King

As isolated as many of us have been in 2020, relationships and personal connections mean more than anything. Both individuals and companies want to work with people they know and trust and can rely on to deliver in a time of need. Logistics is truly a people business. No matter what role you play in the supply chain, if you focus on building and deepening your professional relationships, you are investing in your future.

10. Greater Focus on the Value of Drivers/Carriers

I’m hopeful 2021 will be the year that drivers/carriers will finally get the full respect they deserve. From keeping our grocery stores stocked to distributing the COVID vaccine, carriers/drivers have been on the frontlines of this pandemic. The past few years, the industry has talked about a driver shortage with the narrative focused on a lack of talent entering the industry. But if we take a step back, the problem isn’t people’s interest, it’s because these essential, frontline workers deserve a better wage.

If we truly want to solve the driver shortage and respect the people who have been front and center in this pandemic, the industry must reward carriers/drivers with better pay, benefits, and support.

As we continue to progress into 2021, it’s clear that many of the supply chain impacts from 2020 are here to stay. Flexibility and a commitment to relationship building should be a priority for any logistics company looking to navigate the challenges ahead.

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Aaron Galer serves as senior vice president of Strategic Accounts at Arrive Logistics, “a carrier and customer-centric” logistics company that is headquartered in Austin, Texas, and has offices in Chicago and Chattanooga, Tennessee. Aaron is focused on growing and strengthening partnerships with Arrive’s enterprise shippers and carriers as well as tailoring unique solutions specific to their needs, industry and logistics challenges. He also serves as an internal resource to the entire Arrive team. Prior to joining Arrive, Aaron helped launch the Amazon Freight program and has nearly a decade of logistics experience with Fortune 500 companies including Expeditors and Starbucks. His past responsibilities include building and overseeing transportation teams that manage large transportation spends and developing technology for large shippers. Aaron is active in the supply chain communities in the Greater Grand Rapids and Greater Seattle areas; he holds certifications in Lean Six Sigma and with ASCM and has a degree in Supply Chain Management from Michigan State University.

Air Cargo, Archives, Global Logistics, Global Trade Daily

The Importance of Packaging Optimization in Supply Chain

February 26th, 2021 Amanda Anderson Leave a comment

Packing is usually considered as one of the most boring, least impactful aspects of a supply chain. With logistics, transport methods, and keeping track of your freight shipments, why should you bother with packaging optimization in supply chain? Well, as it turns out, it can have some surprising benefits, especially when appropriately tackled. So, with that in mind, let’s take a more in-depth look into the importance of packing in supply chain management.

Packaging optimization in supply chain management- why it matters

Before we go over the importance of packaging optimization, we need to outline what packaging entails clearly. If you are new to supply chain management, you might think it is merely putting items into boxes. But, in actuality, there is much more to packaging once you get into it. There are various materials to consider, be it their cost or sturdiness, not to mention packaging design for branding and eco-friendliness of your packaging procedures. Therefore, even in a couple of sentences, we can give you an idea that packing is a significant issue and how useful it can be to optimize it with due care.

Safety measures

Safety should always be your primary concern. Whether you are dealing with something private or business-oriented, safety is paramount. With this in mind, you’d be hard-pressed not to consider packaging optimization. By handling your packing procedure, and everything that goes with it, you can ensure that your supply chain is safe. People often forget that proper packing requires in-depth knowledge of the whole chain. It is precisely because you know where the shipments are headed that you should do your part in preparing them.

It often happens that people pack and repack shipments during the supply chain. This is primarily because they are only worried about keeping the shipments safe during their segment. Tackling packing like this is not only cost-inefficient but also potentially dangerous. Since people mainly focus on short-term safety measures, they are unlikely always to follow the necessary packing procedure. By dealing with the whole aspect of packing in one go, you can use the right packing supplies and tape, label, and log items as necessary. While doing so might seem minute, it will play a prominent role in how safe your shipments are.

Cost optimization

As we have already mentioned cost optimization, let’s elaborate more on what role packaging optimization has in it. If you allow people who are not interested in cost optimization to pack your belongings, they will do a poor job. Sure, they will ensure the safety of your items. But, they hardly have the incentive to use packing supplies adequately. It results in half-packed boxes, poorly structured shipments, and considerable unused space. These are the main things that you need to avoid. Now, you might think that these things don’t add up as much. But, think again.

By handling all of these aspects with due care, you will optimize your packaging to the utmost cost efficiency. Keep in mind that even a slight increase in optimization can end up saving you a lot of money. All of the aspects that we have mentioned pile up, especially in large supply chains. So, the more of them you take care of, the better off you’ll be. In fact, we wouldn’t be surprised if you end up astonished at how much money you were wasting with improper packing.

Brand recognition

There is hardly a marketing strategist out there that won’t tell you about the importance of brand and brand placement. If you plan on running a decent marketing strategy, you need to develop a brand and use it in every facet of your business, from your online presence to your vehicles, worker uniforms, and even packaging. There is a reason why companies like Amazon invest in their packing supplies. Branding on them ensures that your customers see your logo, even before opening their products. Not to mention all the people that will be handling your boxes during the shipping procedure. So, all in all, know that investing in branded packing supplies is definitely worth the money spent, especially if you ensure that they are of top quality and that your packing is overall stellar.

Eco-friendliness

Having eco-friendly supply chains is becoming more and more necessary. The current situation requires us to do whatever necessary to protect our environment. Luckily, this is another aspect where packaging optimization has a role. True, it won’t have as big of an effect as utilizing carbon capture or using more eco-friendly fuels. But, the impact it does have is nothing to scoff at.

Using eco-friendly supplies will go a long way in protecting the environment and ensuring low waste. After all, the biggest problem with packing is that we use non-degradable materials like plastic and styrofoam and routinely throw vast amounts of it away. This has to change, and modern supply chains do whatever necessary to do so. Modern materials allow for the same safety while being biodegradable. At the same time, eco-conscious packing procedures ensure that we waste as little as possible.

Final thoughts

All things considered, you should have a decent idea of the importance of packaging optimization in supply chain. Without it, you not only risk losing money but also endangering your items and having a substantial carbon footprint. Know that even a small change in your packing procedures can have a long-lasting effect on your finances and the environment. So, invest your time into looking into it. Once you do some research, you will learn that we’ve come a long way from run-of-the-mill cardboard boxes. Modern packaging solutions give you a lot of freedom to explore how to make packaging as optimized as possible. So, do your best to make the most out of them.

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Amanda Anderson has been a relocation coordinator for various moving companies and marketing advisor for Capital City Bins. During her 15 years of service, she has learned a thing or two about shipping and how to prepare for it safely. Now she helps both professionals and amateurs handle shipping with due care.

Archives, Global Logistics, Global Trade Daily, Ocean Ports

EXPECTATIONS ARE HIGH AS PORTS HANDLING DRY BULK SURVIVE AND EVEN GROW DESPITE PANDEMIC

February 22nd, 2021 Tom Peters Leave a comment

Charting trade waters brought to a turbulent boil by a raging global pandemic would be difficult to do in the best of times. But these aren’t the best of times.

COVID-19, an uncertain global economy, and challenges to commodity demands and supply chains have all contributed, at least in part, to variances in trade trends.

Those trends have been very evident in the volatile dry bulk trade.

“The turbulence of the past year has in many ways clouded the underlying fundamentals in the dry bulk shipping market, but with 2020 now behind us, we are in a better position to establish an overview of expectations for 2021,” says Peter Sand, chief shipping analyst with the Baltic International Maritime Council (BIMCO), the world’s largest organization for shipowners, charterers, shipbrokers, and agents.

“For dry bulk shipping, the year (2020) can be divided in two with lower volumes and earnings in the first half followed by a recovery in the second as China split from the rest of the world, boosting tonne [metric ton] and tonne-mile demand and sending freight rates to profitable levels,” Sand says. “June was the turning point as volumes reached their highest point of the year and earnings jumped, especially for capesize ships.”

The BIMCO analyst points to these statistics: In the first 20 days of 2021, there were 1,427 capesize trips, up 10.4 percent over the same period in 2020. That strong start was reflected in earnings that, after high volatility in 2019 and 2020, have averaged $22,015 per day since the start of the year, comfortably above the $15,300 per day needed for an average capesize ship to break even. Rates peaked at $26,489 per day on Jan. 13 and stood at $24,148 per day on Jan. 19.

A sampling of U.S. ports involved in the dry bulk trade brought varied reactions to evolving trends and changing markets.

“The dry bulk sector is an important backbone of Port Tampa Bay’s activities and a major factor contributing to its status as Florida’s largest cargo tonnage port, as well as being one of the most diversified ports in the country,” says Wade Elliott, the port’s vice president of Business Development.

Elliott pointed to 38 percent—or 12.4 million tons—of Port Tampa Bay’s total cargo volume in 2020 having consisted of dry bulk cargo. Among the major dry bulk commodities handled at the port are phosphate fertilizer products, limestone, cement, granite, gypsum, coal, grain, sulfur, fly ash, salt, slag, pumice and bauxite.

Despite the pandemic, Port Tampa Bay’s total dry bulk cargo volume increased by 3 percent last year, and,” the VP says, “we are expecting that trend to continue. The demand for building materials remains very strong driven by Florida’s continued strong population growth, which is fueling the real estate construction market. The outlook for Port Tampa Bay fertilizer exports is also positive as Florida phosphate products are shipped around the world helping farmers meet expanding demand.”

As the port’s dry bulk sector grows, the port is working closely with its dry bulk tenants to support their expansion of terminal facilities to keep pace with the demand by adding additional berths and storage.

Port Milwaukee has also managed to stay the course in the dry-bulk trade by keeping up on new trends and market conditions, working closely and regularly with port tenants and key stakeholders and leveraging opportunities collaboratively, according to Maria Cartier, the Market Development manager at the Great Lakes port.

An example of taking advantage of market conditions, Cartier says, “is our partnership with the DeLong Company in the planned development of a new $31-million agricultural marine export facility. This new facility addresses the increased global demand for dry distilled grain solubles, a by-product of ethanol used in animal feed.”

The port also “participates in conferences, events and various forums that allow us to network with industry partners and helps keep us up-to-date on new market conditions and developments,” she added.

Port Milwaukee is optimistic that by staying in tune with trends and markets, it will promote cargo growth.

“A strong demand for Wisconsin-based agriculture, investments in infrastructure and our role as a major supplier of road salt to the region will continue to support our position as a primary handler of dry bulk materials on the Great Lakes,” Cartier says.

Dry bulk commodities—salt, cement, bottom ash and grain—account for approximately 80 percent of Port Milwaukee’s overall commodity throughput, according to the marketing manager.

“COVID-19 has not affected our cargo throughput thanks to Port Milwaukee’s team of expert staff and long-term tenants,” Cartier says. “Through their collaborative efforts, we have maintained safe, efficient and healthful operations without commercial interruption.”

Dry bulk cargoes comprise about 7 percent of the Port of Corpus Christi’s (PCC) overall volumes that include a variety of commodities such as barite, iron ore fines, DRI, pet coke, slag, sulfur, grain such as sorghum and wheat.

Unlike some ports, PCC has not escaped the pandemic.

COVID-19 “has impacted our oil and gas cargoes such as barite and some construction activity on aggregates coming in,” notes Eddie Martinez, PCC’s Trade Development manager. “Drilling activity has slowed down, in part due to COVID, as has a slowdown in construction overall,”

Although COVID is a constant these days, it hasn’t stopped the Texas port on the Gulf of Mexico from moving forward with growth in mind.

“PCC continues to make investments in our terminals to improve overall logistics for dry bulk cargo,” says Martinez. “The port acquired a new Liebherr crane in late 2019 to improve our overall discharge rate. Bulk grains are active and should continue to remain active in 2021.”

The expectation, he said, is that dry bulk cargo will remain steady with nominal gains. Amid unpredictable market changes in the trade sector, PCC’s strategy is to work “hand-in-hand daily within our departments for capital project planning to improve overall facilities for our current and new customers to include planning, operations, engineering and trade development,” Martinez says. “We are actively engaged with our customers on their annual expectations and trends affecting them and offer possible solutions where we might be able to support them with logistic and infrastructure that may require capital on rail or waterfront.”

Even without a global pandemic, building dry bulk markets brings challenges, he notes. “PCC has to analyze where our strengths lie when being approached on new dry bulk opportunities. Some of our facilities are showing their age, and PCC is making necessary investments to get them up to standard.

“Further, not every cargo is suitable for our port. The commodity itself, destination or origin, air permit limits, rail and dock infrastructure all play a role in the selection of new dry bulk market development. The port reviews each opportunity and tries to identify if it’s a good fit for both the customer and the port. We want to create a relationship where the client can really grow their business model here in our area and region for years to come.”

Archives, Global Trade Daily, Global Trader Profile

As 2020 Reaches an End, these Global Traders Continue Moving On Up

December 8th, 2020 GT Staff Leave a comment

MODE Transportation, a leading multimodal third-party transportation and logistics provider based in Dallas, announced that Lance Malesh has been appointed president and CEO. He succeeds Jim Damman, who had led the company as president and CEO for more than 15 years before recently appointed chairman.

Kevin Shuba, who since 2013 has been CEO of OmniTRAX, one of the nation’s fastest-growing railroads, has accepted a new role with OmniTRAX’s parent company The Broe Group, a Denver-based, multi-billion-dollar organization with assets and operations that span North America. OmniTRAX Board Chair Cameron Scott will lead the search for the next CEO.

Texarkana, Texas-based TexAmericas Center recently announced that John Sesler has been named vice president of Logistics as part of its newly unveiled 3PL services to its tenants.

Team Worldwide, a global 3PL based in Winnsboro, Texas, recently welcomed Margaret Bradford as director of Ocean Services. She will be based in Chicago. Team Worldwide also created the position of director of Logistics Centers for John Barnes, who brings 34 years of leadership experience from Southwest Airlines.

United Heavy Lift, a global leader in marine ocean transport of heavy lift, breakbulk and project cargoes, recently opened a Houston office managed by Rene Pedersen, who previously worked in leading positions for Scan-Trans, Intermarine, and Zeamarine. Also joining the Houston office is Eileen Wang as Business Development executive.

STG Logistics, a Downers Grove, Illinois-based provider of bonded Container Freight Station, contract logistics and customized transportation services, has appointed Dan Gardner chairman of its Advisory Board. Gardner is president of supply chain consulting firm Trade Facilitators, a licensed U.S. Customs Broker and an adjunct professor of Global Trade. Joining the Advisory Board along with him is Tim Nolan, president, and CEO of TOTE LLC and a former executive with Yusen Logistics Americas.

Institute of International Container Lessors announced that Dennis Lombardi is now president of the association, replacing Steven R. Blust, who will be retiring from his role as president but will stay on with IICL as a senior advisor. Lombardi had spent most of his 40-year career in various roles at the Port Authority of NY/NJ, including serving as the deputy director, Port Commerce.

Bryan Most joined the New York Shipping Exchange this past August as senior vice president of Retail, after serving as the vice president of Transportation at Walmart Stores Inc..

Nuvocargo, the first digital freight forwarder and customs broker for US/Mexico trade, announced it has expanded its senior management team with Anaid Chacon, head of Product; Antonio Echevarria, director of Sales; Hector Ruiz, director of Operations; and Luis Eduardo Torres, head of Finance and Business Operations. The company has offices in New York City and Mexico City.

Jacksonville Port Authority (JAXPORT) announced that retired U.S. Coast Guard Capt. Dwight Collins is now director of Public Safety and Security.

GoExpedi, an innovative e-commerce, supply chain, and analytics company based in Houston, announced Dustin Trahan as its new vice president of Supply Chain.

International law firm Dorsey & Whitney LLP announced that Carlos Méndez-Peñate has joined its New York office as a partner and co-chair of the firm’s Latin America and the Caribbean Practice Group. He has more than 40 years of experience in Latin America and the Caribbean, where he has helped clients complete complex cross-border transactions.

International Air Cargo Association (TIACA) bid farewell to Vladimir Zubkov, secretary-general of TIACA from January 2017 to August 2020, and special advisor to the Board on Industry Affairs since September 2020. He has not commented on what’s next after TIACA, which previously announced a leadership restructuring that will have Glyn Hughes becoming its first director-general on Feb. 1.

French Prime Minister Jean Castex named Stéphane Raison the first director-general of HAROPA, a joint venture between the ports of Le Havre, Rouen, and Paris and the fifth largest port complex in Northern Europe. Raison had been director-general of the Port of Dunkirk.

National Association of Chemical Distributors (NACD) announced the results of its Board of Directors’ elections that were held during NACD’s 49th Annual Meeting. The positions, winners and their companies are: Chairman Kurt Hettinga, Superior; Vice Chairman Edward Boss, Riteks Inc.; Treasurer Megan Gluth-Bohan, TRInternational Inc.; and Directors-at-Large Jessica Fegan, Connection Chemical LP, and Jason Jacobus, Buckley Oil Co. Directors-at-large serve three-year terms, while the rest hold their positions for two years.

Archives, Global Logistics, Global Trade Daily, Stories

Global Trade and Logistics: Adapting to Constantly Evolving Needs

December 7th, 2020 EKA Leave a comment

Global trade managers have to deal with the complexities of multiple languages, time zones, currencies, taxes, and modes of transport. There are several laws governing global trade, and these are highly complex and ever-changing. So how do organizations manage these complexities and how can you get a competitive edge?

Current scenario

The complexity in global trade management exposes you to a lot of risks. While companies want to make the most profitable trades, it is important to balance counterparty and credit risk. Organizations must review and act on large volumes of regulatory information, which is often published on paper in varying formats and maintained in spreadsheets throughout the organization. Visibility into the entire trading value chain provides the key to making smarter, more profitable decisions. Raw materials and commodity businesses need accuracy int three key areas:

1. Flow of Information

Companies need a complete view of budgeted and actual trade-related P&L across contracts, shipments, invoices, and payments. They need to ensure documents are accurate and comply with business agreements and have a clear appraisal of all order edits, shipment changes, and related documentation.

2. Flow of goods

Companies need to track shipment and order related activities, manage all information related to the movement of the physical goods, and implement credit checks of all counterparties during contract negotiations, shipment, and invoicing.

3. Flow of cash

Good cash flow management is essential to profitable trading. Companies must diligently record the flow of letters of credit from creation to final presentment and record and track loans. They must manage resolution flows among multiple trading partners.

A Comprehensive and Modern Solution

Traditionally, global trading organizations spend most of their time and resources manually screening shipments and updating them. The solution should ensure that the process is automated, enabling organizations to screen their shipments more often, more efficiently, and more accurately, ensuring the actual shipment status is reported to the required parties.

In addition, companies should be able to track and trace shipments from origin to destination and boost operational efficiencies. They are aware of delays and deviations and can overcome shipment delays. By comparing costs and charges, companies can determine the best voyage strategies.

These challenges are difficult to master without a comprehensive solution that is simple but has the capability to manage numerous complex global trade activities and is designed to save time and effort, enabling companies to focus on core work. A modern solution that would streamline the entire lifecycle of the supply chain – automating manual processes would help reduce the cost, time, and risks in quantifiable and auditable ways.

Eka Software Solutions is a global leader in providing digital commodity management solutions driven by Cloud, Blockchain, Machine Learning and Analytics.

Archives, Global Trade Daily, News

Old Dominion Confirmed for the 2020 EPA SmartWay Excellence Award

November 15th, 2020 GT Staff Leave a comment

Old Dominion takes leading sustainability efforts in the trucking industry to a new level. Thanks to its role within the SmartWay Transport Partnership, the LTL carrier has contributed to the savings of 279.7 million oil barrels, $37.5 billion in fuel costs, and 134 million tons of air pollutants, according to information released. These successes in addition to consistent efforts in sustainable operations have earned Old Dominion the EPA SmartWay Excellence Award award for the sixth year in a row.

“Sustainability is a critical component of Old Dominion’s operational strategy. We’re committed to being a good corporate citizen and our partnership with the SmartWay Transportation program helps us move towards being a more sustainable carrier,” said Greg Gantt, president and CEO, Old Dominion Freight Line.

The award and 11-year partnership with SmartWay support Old Dominion’s position as a leader in sustainable operations within the freight supply chain arena. Old Dominion represents one of roughly 3,670 companies in partnership with SmartWay. SmartWay partners range from freight shippers to manufacturers, cargo owners, retailers, and more.

Sam Faucette, Old Dominion’s vice president of safety and compliance, received the award on behalf of the company on November 5th during the EPA SmartWay Excellence virtual conference.

“We will continue to look for ways to improve our sustainability practices and ultimately reduce our carbon footprint. We are humbled by this recognition and thrilled to receive this award for the sixth consecutive year,” Gantt concluded.

Archives, Foreign Trade Zones, Global Trade Daily, International Trade, News

The Next Big Disruption of the Supply Chain Network

October 20th, 2020 Omar Kazzaz Leave a comment

Turkey and Greece Clash Over Oil and Gas in the Eastern Mediterranean: 14 Actions to Take to Keep Your Cargo Moving and Your Supply Chain Agile and Resilient.

While the Mediterranean Sea as a whole has been the center of oil and gas explorations, it is in the Eastern Mediterranean Sea that massive gas fields exist. “According to a 2010 study by the US Geological Survey, the Eastern Mediterranean could hold as much as 122 trillion cubic feet of natural gas in total, equivalent to the reserves of Iraq.” However, the discovery of oil and natural gas in the region has reignited territorial conflicts between Turkey and Greece, both of whom are members of NATO.

Turkey has always felt that the Treaties of Sèvres and Lausanne were not only humiliating but that they stripped the country of valuable territory which is now very promising financially, economically, and logistically. In addition to Turkey and Greece, the discovery of gas affects Cyprus, Lebanon, Israel, Syria, Jordan, Egypt, and Libya. But for Turkey especially, it could be a means to leverage itself into a much stronger regional power.

In addition, Turkey felt that excluding it from the regional energy development talks in the Eastern Mediterranean, was a slap in the face. As a result, both Turkey and Greece are boosting their military presence in the Eastern Mediterranean Sea. There is no doubt that 2 events emboldened Turkey’s actions; the world is busy fighting the coronavirus and the strides made in technological advancement which made manufacturing and acquiring weapons a lot cheaper than what it used to be.

BCOs (Beneficial Cargo Owners) operating in this geopolitical climate should consider these long- term strategies:

-Rethink your supply chains by examining the geographical locations, financial and logistical strengths, weaknesses, agility, and resiliency of your suppliers.

-Add 2 to 3 weeks to your transit times. This will protect you from unexpected weather delays, blank sailings, removal of ships from service, or even the cancellation of sailings altogether if the conflict escalates and waterways and bridges are closed.

-Increase your lead time and inventory level, which may seem expensive at first, but will actually be less expensive in the long run, when you will be forced to resort to shipping by air in order to maintain high service levels and promises to customers.

-Review and revise your forecasts weekly.

-Increase your buffer stock and inventory when necessary; doing so won’t necessarily reduce your cash flow if you negotiate good credit terms with your suppliers.

-Build-in your budget increases in spend on ocean freight rates, BAF, and WRS.

-Assume the worst-case scenario and have alternative procurement sources should sanctions be imposed or should war break out.

-Account for the increases in duty should the alternative suppliers be located in countries subject to higher duty rates.

-Make sure that your cargo carries additional insurance coverage to mitigate war risk.

-Avoid the carriers whose ships carry the flag of the conflicting countries.

-Monitor the financial stability of all links in the value chain frequently, especially the stability of ocean carriers given the consolidations and reorganizations that have been taking place lately.

-Make sure that the air freight cost is accounted for and that your customer will accept the additional charges should you have to resort to airlift any cargo. Having these contingency plans negotiated and agreed upon in advance will eliminate delays, surprises, and even possible plant closures due to last-minute disagreements.

-Communicate, plan, and execute with internal and external stakeholders frequently. Constant communication cannot be emphasized enough. So is the frequent evaluation of all suppliers and service providers for products, services, and contract revisions if necessary due to the volatility and complexity of today’s supply chains.

-Stay abreast of events in the whole Middle East region given the daily geopolitical developments some of which may affect the movement of cargo between that region and the world.

This is a conflict that, at first sight, seems to be between Turkey and Greece but, in reality, it’s much more complicated than that because now the USA and the EU are involved. As a matter of fact, the EU is considering sanctions against Turkey.

The best course of action would be for the clashing countries to renegotiate the treaties that caused their grievances including but not limited to their territorial waters and the Law of the Sea.

Lastly, the latest military escalation was not the result of the discovery of gas only as it carries within its centuries of territorial and religious conflicts. Most importantly, this is happening between Turkey and Greece who at one time were glorious empires and who are intent on bringing that glory back.

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Omar Kazzaz specializes in business strategy, BPI (Business Process Improvement) as well as supply chain design, planning and execution. He has 28 years of experience in international business, global logistics and supply chain.

Mr. Kazzaz is a long-standing member of the Global Thinkers Roundtable. In addition, he has been involved in numerous panel discussions on global trade and global logistics. His comments and articles on international trade agreements, global manufacturing and supply chain have been quoted in many publications.

Mr. Kazzaz holds an MBA in International Management from Thunderbird, The American Graduate School of International Management in Glendale, AZ, and a BA in German and Economics from The University of North Carolina at Charlotte. Besides his native Arabic language, Mr. Kazzaz speaks French and German.

Archives, Global Shippers 101, Global Trade Daily

How to Save Time and Money With Your International Shipping

April 27th, 2020 Paul Rehmet Leave a comment

Whether you are just dipping your toes into international shipping, or you are a veteran who wants to update the firm’s processes, there is always more you can do to make your shipping practices more streamlined and efficient. After all, if you are going to compete with local players, then you need to be offering the best deal possible on international shipping. How you can do that is going to be unique to your firm, but some general practices can help.

From managing customer’s expectations of speed to optimizing your packaging, investing in cargo insurance to getting help when you need it, read on to learn how to save time and money with this guide to international shipping.

1. Balance your need for speed.

Generally, the quicker you want your shipments to be delivered, the more expensive the shipping is going to be. Therefore, it is essential that you balance your need for speed with your budget and your customer’s expectations. Customers expect reliable delivery times, not necessarily the fastest possible time, and in many cases, they are happy to wait a couple of days to bring costs down.

Therefore, your best strategy is to provide them with a variety of delivery options to choose from. That way, they can decide how much they are willing to pay and how long they can wait for their goods. Keep in mind that for most companies, the goal is to limit the number of individual shipments and instead maximize the amount of cargo shipped. This generally brings about the most efficient results.

When organizing international shipping for your customers, it is essential that you make their experience as pleasant as possible. One of the best ways to do this is by providing them with accurate shipping information that keeps their expectations in check.

2. Optimize your packaging.

One of the most overlooked ways to reduce international shipping costs is to optimize your packaging. The ideal packaging keeps your products safe and secure while also reducing shipping weight and box size so as not to receive additional charges. In order to find the optimal packaging for your goods, you need to take different factors into consideration, including a product’s height, weight, and volume.

From there, look for boxes that fit your product while leaving minimal wasted space. Additionally, choose lightweight packaging materials that still protect your items. Depending on what you are shipping, you may want to consider utilizing standard sized packaging that is provided by your freight provider, as this will remove your firm’s requirement to source custom box sizes.

When planning your packaging strategy, it is vital to think dimensionally, which means knowing the length, width, and depth, which together comprise the dimensional weight of your goods. If you are shipping in bulk, keep in mind that you want your packages to be shaped so that they can be expertly arranged to fit into the smallest size carton.

3. Invest in cargo insurance.

Just as you have insurance for your home, car, and health, it is also essential that you have coverage for your cargo. Unfortunately, it only takes one international shipping incident for your firm to feel adverse effects, which is why cargo insurance is so important. By getting this insurance, you will be covered for damaged goods, cargo theft or loss in transit, and any other unforeseen events that affect your products.

While many carriers and freight forwarders offer liability insurance, this is generally limited to a specific monetary amount and has many exclusions. Therefore, you don’t want to solely rely on this liability insurance because it usually is not enough to cover the costs of severe loss or damage. On the other hand, cargo insurance will render you a more comprehensive level of protection, ensuring you can recover the full value of lost, damaged, or stolen goods.

Having cargo insurance is highly recommended because it provides you with greater peace of mind which, in the long run, makes for a more efficient and streamlined international shipping process. The last thing you want is to be worried about your firm going under because something happens to a shipment that is out of your control. Do your company a favor and invest in cargo insurance.

4. Get help when you need it.

No matter what size your company is, what products you are shipping, or whether you are moving individual parcels or sizable cargo, there is no need to do it all on your own. After all, there are experts in these fields who have the knowledge and experience to help you reduce your costs and the number of resources you have to spend on shipping logistics.

By opting to work with an online freight forwarder, such as Shipa Freight, you are not only setting yourself up for shipping success now but also in the future. From generating an online quote to scheduling your shipments and then tracking them, an online freight forwarder provides you with all the tools you need to make your international shipping processes as streamlined as possible.

For example, as an individual, it can be challenging to locate the ports and other destinations that you need, but a high-quality freight forwarder can find them for you. Additionally, you will be personally guided by a representative throughout the process so that you can be assured that you are choosing the best options for your firm. When working with Shipa Freight, you will always be treated as a partner, not a commodity.

Final Thoughts

When it comes to international shipping, if you want to come out on top, then your firm must incorporate as many cost-saving and time-effective measures as possible. By including these steps into your international shipping strategy, you will be well on your way to having the most efficient shipping process possible.

What do you think are the most effective steps for reducing costs and time related to international shipping? What strategies does your firm use?

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As Chief Product Officer for Shipa Freight, Paul Rehmet is responsible for translating the vision of Shipa Freight into an easy-to-use online freight platform for our customers. Formerly Vice President of Digital Marketing for Agility, Paul managed Agility’s website, mobile apps, content marketing and online advertising campaigns. In his 25-year career, Paul has held various technology leadership positions with early-stage startups and Fortune 500 companies including Unisys, Destiny Web Solutions, and US Airways. Paul has a Masters in Software Engineering from Carnegie Mellon University and a Bachelor of Computer Science from Brown University. Paul is based in Philadelphia.