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Freight Forwarders Predict Tighter Space and Higher Rates Coming out of Asia

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Freight Forwarders Predict Tighter Space and Higher Rates Coming out of Asia

The Chinese e-commerce sellers Temu and Shein, are upending the air cargo market. Cheap clothing and household goods bound for the US and Europe are gobbling up aircraft space, stoking fears of an eventual capacity squeeze.

Read also: Essential Guidelines for US Freight Forwarders

While China has held the crown as the world’s low-cost manufacturing giant for some time, Shein and Temu are approaching previously unimaginable levels. Shein is currently selling to over 150 countries, while Temu has covered 40 and growing. 

Both companies employ an on-demand business model where orders are placed to suppliers to be delivered in days. Real-time demand data allows for timely replenishment as needed and limits the need for storage and inventory risk.  

Competition for aircraft space has ballooned in the south of China, the heart of the country’s manufacturing hubs. In June, prices were up a considerable 40% compared to 2023, which is a rarity for a summer month. It is estimated that Chinese e-commerce firms now consume over 30% of cargo space on critical routes out of Asia. 

In a typical context, airfreight is reserved for high-value items and perishable goods. But demand is so great for Shein and Temu’s low-cost items that air routes are now sending purses, T-shirts, pots, and pans. In each of the first five months of 2024, exports out of Hong Kong International Airport registered double-digit increases, and May was up a staggering 30% year-over-year. 

Freight forwarders are sounding the alarm that space will be tight during the normal fourth-quarter retail rush. Many forwarding companies are nudging manufacturers and retailers to lock in higher-than-usual rates now to avoid unpleasant surprises come October. Extra capacity will be a premium if not unattainable in 2024. 

The air cargo business is up broadly for the year. The International Air Transport Association estimates a rise of 12.7% in global airfreight demand over the first four months of the year, with Asia-Pacific notching a 14% gain alone in April. 

Other factors driving air cargo activity are ocean shipping bottlenecks, driven largely by disruptions in the Red Sea, vessel capacity shortages, and port congestion in a handful of key markets.

global trade container

Top 25 Container Ports In The United States

Imagine a major highway with poorly timed traffic lights. Everything slows down, causing delays and frustration. Ports in the United States are like those highways, and excellent container cargo operations are like well-timed traffic lights. They keep everything moving smoothly and efficiently.

Read also: May 2024 U.S. Containerized Imports Break 2.3M TEUs

This is important beyond port terminals because they are major economic hubs, handling a massive amount of cargo coming in and out, feeding the country’s consumer goods and industrial needs. Efficient operations ensure a smooth flow of goods, which keeps businesses running and shelves stocked. Delays at ports can disrupt supply chains and lead to price hikes for consumers.

Efficient port operations are also important beyond U.S. borders as the nation competes with other countries for international trade. Ports with fast turnaround times make the U.S. a more attractive destination for shippers. This translates to more revenue and jobs in the U.S. economy.

When it comes to gauging the top U.S. ports in the container sector, we must look at total twenty-foot equivalent units (TEUs) handled. Based on the size of a standard 20-foot long shipping container, a TEU is the standard unit used to measure the capacity of vessels and terminals. One 20-foot container is equal to one TEU and large 40-foot containers are counted as two TEUs.

Do you know who uses TEUs to determine the busiest container ports in the U.S.? None other than the U.S. Department of Transportation, whose 2024 Port Performance Freight Statistics Program Annual Report to Congress includes a list of the Top 25 Container Ports ranked by TEU. That list follows with Global Trade’s own analysis of why each port made the cut.

1. PORT OF LOS ANGELES, CA 

The busiest container port in the U.S. processes a massive amount of containers, moving more than 9 million TEUs annually. The operation is divided among seven major container terminals, each equipped to handle the loading and unloading of container ships. The Cargo Operations Dashboard web portal provides real-time data on various aspects of cargo movement, such as truck activity at terminals and vessel locations. For moving containers inland, the port connects to a vast rail network with six intermodal rail yards, a key route being the Alameda Corridor, a 20-mile express railway that zips containers directly to rail hubs in downtown L.A.

2. PORT OF LONG BEACH, CA

L.A.’s sister container cargo powerhouse also handles millions of TEUs annually. Unlike some ports that directly manage cargo movement, Long Beach operates as a “landlord port,” with private terminal operators performing the day-to-day operations of loading and unloading container ships at various terminals. The port caters to a diverse range of containerized cargo, with terminals specializing in different goods. This allows them to handle a wider range of imports and exports efficiently. The POLB is at the forefront of adopting sustainable practices, having implemented zero-emission cargo handling equipment like electric yard tractors, reducing dependence on fossil fuels.

3. PORT OF NEW YORK AND NEW JERSEY, NY & NJ

The largest containerized cargo port on the East Coast boasts a vast operation spread across six terminals and public berths, equipped to handle the world’s biggest container vessels. Like other major ports, NY/NJ prioritizes efficient cargo movement. Third-party logistics providers (3PLs) play a crucial role, offering services like consolidation (combining smaller shipments into full containers) and deconsolidation (separating a full container into individual shipments) to streamline the import and export process. The Port Authority of New York and New Jersey participates in the World Port Sustainability Program, demonstrating a commitment to environmentally conscious practices alongside the cargo handling operations.

4. PORT OF SAVANNAH, GA

Savannah boasts the largest single-terminal container facility in North America, covering over 1,300 acres and equipped to move millions of tons of containerized cargo annually. The port is well-equipped with 42 container cranes (with a target of 42 by 2028) and more than150 rubber-tired gantry cranes to handle the loading and unloading of containers swiftly. Savannah offers direct access to major highways (I-95 and I-16) and on-terminal rail facilities ensure seamless cargo movement. As the most westerly port on the Atlantic seaboard, Savannah offers shorter transit times for cargo destined for major inland markets in the southeastern United States. 

5. PORT OF VIRGINIA, VA 

Another major force in containerized cargo handling on the East Coast, Virginia has seen significant growth in recent years, with a focus on expansion and efficiency. They recently completed a $750 million expansion project that increased cargo capacity by 46 percent. Thanks to its deepwater channels and ongoing dredging projects, the port can accommodate the largest container vessels currently operating. The port utilizes semi-automated container terminals with advanced cranes to expedite cargo handling. Norfolk International Terminals is the largest terminal and will boast more than 90 semi-automated cranes upon completion of its expansion. The port offers excellent multimodal connections.

6. PORT HOUSTON, TX

The port boasts two state-of-the-art container terminals: the Bayport Container Terminal and the Barbours Cut Container Terminal. These facilities are equipped to handle the modern giants of container shipping efficiently. Port Houston is investing $750 million over five years (through 2027) to upgrade the Bayport Container Terminal’s infrastructure and capabilities—a commitment to handling more containers and larger vessels in the future. Houston’s extensive highway network and role as a major trucking hub in the U.S. contribute to the efficient movement of containers inland after they are offloaded from ships. The port also offers on-site rail connections for seamless cargo movement.

 7. PORT OF CHARLESTON, SC 

Charleston has seen significant growth in recent years, becoming the fastest-growing container port in the U.S. Major investments are being made to handle the largest container vessels. The Charleston Harbor deepening project, completed in 2021, allows the port to accommodate all post-Panamax ships (the biggest ones!) 24/7, boosting its competitiveness. The port’s container operations are spread across several terminals, including the North Charleston Terminal, the Wando Welch Terminal and the recently opened Hugh Leatherman Terminal. The South Carolina Ports Authority offers various tools like GO!Port, a system for tracking and tracing container cargo, providing real-time data and enhancing supply-chain visibility. 

8. PORT OF OAKLAND, CA 

Oakland has seen steady growth in container traffic, with a particular surge in imports in recent years. Terminals are equipped to handle this increasing volume efficiently. The port has strategically invested in infrastructure to accommodate the giants of the sea. Oakland routinely receives calls from ships with capacity for 14,000 containers and can handle even larger vessels with the necessary adjustments. Oakland prioritizes swift cargo movement. They boast some of the highest ship-to-shore crane productivity rates on the West Coast, meaning they can load and unload containers quickly.

9. PORT OF TACOMA, WA 

Among the largest deepwater ports in America, Tacoma is situated on Commencement Bay in Puget Sound, making it geographically well-positioned. The port serves as a vital gateway for cargo moving between Asia and the eastern U.S., with more than 70% of its international cargo directed toward these regions. Additionally, Tacoma handles around 80% of the marine cargo between Alaska and the Lower 48 States. Various sustainability programs are in place to reduce emissions from port operations and promote environmentally responsible cargo handling practices.

10. PORT OF SEATTLE, WA

The Port of Tacoma and Port of Seattle are managed by the Northwest Seaport Alliance, a collaboration that strengthens their overall container handling capabilities. The Port of Seattle handles millions of TEUs annually across several terminals. Efficiency is a priority there, with trucks and on-site rail connections ensuring swift movement inland. Sustainability efforts are also in place to balance economic activity with environmental responsibility.

11. PORT OF JACKSONVILLE, FL

JAXPORT, as the port’s authority and the port itself are known, ranks first among Florida’s ports for containers. The Dames Point Terminal efficiently handles millions of TEUs with connections to major highways and on-dock rail for seamless cargo movement throughout the U.S. Southeast.

12. PORTMIAMI, FL 

Known mostly for cruise ships, PortMiami handles containers, too. Cargo moves efficiently through its container terminal with connections to highways and rail for regional distribution.

13. PORT OF SAN JUAN, PR

Puerto Rico’s main port prioritizes container cargo. Three major shipping lines call there, utilizing a “carousel” crane system to efficiently load and unload containers destined for or arriving from the U.S. mainland. 

14. HONOLULU HARBOR, HI

The O’ahu facilities not only handle container cargo, they recently expanded their container terminal capacity by 40% to handle increasing volumes and improve efficiency for island trade.

15. PORT OF BALTIMORE, MD

Baltimore boasts the No. 1 container terminal on the East Coast (Seagirt Marine Terminal) with super-post-Panamax cranes and swift container handling. They handle millions of TEUs annually.

16. PORT EVERGLADES, FL

The port has a reputation for efficiently moving millions of TEUs with quick ship turnaround and connections to highways and rail.

17. PORT OF PHILADELPHIA, PA

PhilaPort’s Packer Avenue Marine Terminal is the main hub for container cargo, with rail and highway connections for efficient inland transport.

18. PORT OF MOBILE, AL

Mobile boasts fast ship turnaround with 35 container lifts per hour and 45-minute truck wait times.

19. PORT OF ALASKA, AK

Alaska’s main cargo handler in Anchorage sees twice-weekly container ships delivering essential goods for most of the state.

20. PORT OF NEW ORLEANS, LA

New Orleans’ Napoleon Avenue Terminal handles more than 600,000 TEUs annually with cranes for mega-ships up to 10,000 TEUs.

21. PORT OF WILMINGTON, NC

The North Carolina port efficiently handles containers with seven cranes, including neo-Panamax models for large ships, offering easy access to highways for distribution.

22. PORT OF WILMINGTON, DE

The Delaware port boasts a 500,000 TEU annual capacity with four gantry cranes and efficient rail connections for onward transport.

23. PORT OF PALM BEACH DISTRICT, FL

Florida’s fourth busiest container port handles more than 290,000 TEUs with 24/7 on-dock rail for smooth container movement.

24. SOUTH JERSEY PORT CORPORATION, NJ

The operator of marine shipping terminals in seven New Jersey counties focuses mostly on breakbulk and bulk cargo, but it does have cranes for containers.

25. PORT OF BOSTON, MA

Boston’s Paul W. Conley Terminal specializes in container cargo, with gantry cranes and automated stacking cranes for efficient loading and unloading.

 

tradebeyond global trade supply chain council

Building Resilient Supply Chains through Collaboration and Digital Connections

Collaboration and communication are increasingly important for effective continuity planning and business development in a complex and uncertain global supply chain operating environment.

Read also: Building a Resilient Supply Chain with Advanced Predictive Analytics

Forwarders and their business partners must maintain clear lines of communication and always-on access to information about disruptive events to quickly manage exceptions, whether weather-related, geopolitical, or other events.

When supply chain and logistics service companies have an effective, secure way to communicate and integrate with business partners and industry trading contacts, they enable greater supply chain resiliency, flexibility, and safety.

Timely digital communication and collaboration enable partners to a shipment to be proactive in researching disruptive events, determining their impact, and exploring alternative solutions. Supply chain and logistics options, such as alternate routes, backup storage facilities, port gateways, or transportation modes must be evaluated quickly to maintain production schedules and meet customer expectations.

Plus, when expanding into new markets, a secure, globally connected network offers access to new business partners, such as agents, that have local and regional knowledge and experience and the boots on the ground to facilitate reliable freight movements.

By being part of a collaborative industry network that securely connects to global shipping industry participants 24/7, an organization’s supply chain and logistics network can quickly address disruptions and seize business opportunities to successfully address unique market and infrastructure conditions.

Uniting businesses in commerce

Through a cloud-based global network, a worldwide community of users can quickly access logistics and market updates and build trusted business relationships with trading partners across the globe to improve visibility, predictability, and control. 

For example, Magaya, a logistics and supply chain automation software provider, connects forwarders and logistics service providers and their agents across the globe with the Magaya Network.

The Magaya Network facilitates timely, direct peer-to-peer dialogue when supply chain disruptions are occurring and facilitates reliable origin-to-destination data flows. Information can be exchanged faster, more securely, and more accurately when sent electronically in the cloud.

Shipping documentation can be electronically exchanged, enabling transactional information to be completed and flow smoothly and accurately from end-to-end. Participants can immediately transfer all necessary shipment and customs documents electronically allowing for faster freight clearance, eliminating the errors that occur with manual data entry, and, ultimately, lowering costs.

Secure connections

With the constant risk of scams, spam, and cyber-attacks, electronic transmission of shipment documentation via a secure network is an essential capability for today’s global shipping participants. Networked communication has encrypted data and uses authentication to verify a user’s credibility. It is much more secure than email, which is known for its risk of data breaches and can easily fall into the wrong hands.

Additionally, as part of a global network, trading partners can rely on an outside firm like Magaya for its established cybersecurity protocols and ongoing security updates. This alleviates the burden on businesses to manage this critically important aspect of their business.

Collaboration and communication are indispensable enablers for today’s global supply chains. Navigating today’s uncertainty, disruptive events, and evolving market dynamics underscores the importance of seamless connectivity. Through fostering robust partnerships and embracing digital networks, companies can fortify their supply chains and logistics networks against disruptions while seizing new opportunities. Digitized communication platforms like the Magaya Network provide secure communication and reliable data exchanges to support resilient, efficient supply chains.

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Essential Guidelines for US Freight Forwarders

In a bid to clarify export compliance responsibilities, the Bureau of Industry and Security (BIS) has recently issued comprehensive guidance tailored for freight forwarders engaged in international trade. This directive underscores the critical importance of adhering to legal frameworks and mitigating risks inherent in export operations.

Read also: Robots Paying the Bills For Freight Forwarders

The released guidance serves as a beacon of clarity, delineating the precise roles and obligations of freight forwarders within the export process. By eliminating ambiguity, it empowers forwarders to establish efficient protocols, potentially reducing errors and operational bottlenecks.

Key among the benefits of this guidance is the establishment of clear expectations, enabling forwarders to develop streamlined procedures for managing export transactions. Enhanced communication and documentation practices are poised to further bolster operational efficiency, particularly in Electronic Export Information (EEI) filings.

Yet, with these benefits come challenges. The emphasis on export security places forwarders under increased scrutiny, necessitating stringent adherence to compliance standards. This heightened focus underscores the imperative for forwarders to shoulder a degree of strict liability, particularly concerning the accuracy of EEI filings.

Central to the guidance is the delineation of freight forwarders’ responsibilities, which include obtaining clear instructions from exporters, understanding pertinent regulations, ensuring accuracy in EEI filings, and maintaining stringent security and compliance measures.

Through measures such as securing Shipper’s Letter of Instruction (SLI) or Power of Attorney (POA) from exporters, forwarders can ensure clarity regarding their role and obligations in the export process. Familiarity with regulations outlined in the Export Administration Regulations (EAR) and other federal mandates is paramount to navigating compliance complexities.

Crucially, forwarders must prioritize accuracy and timeliness in EEI filings, whether conducted by the exporter or themselves. Vigilance for red flags, such as boycott language, and alignment with license requirements are imperative to safeguarding compliance integrity.

By adhering to these guidelines, US freight forwarders can navigate the intricacies of export compliance with confidence, contributing to a secure and responsible global trade landscape.

air

CargoAi Introduces Groundbreaking Air Freight Load Board for Airlines and Forwarders

CargoAi, a leading global provider of airfreight technology solutions, is revolutionizing the industry with the launch of its latest innovation: the Air Freight Load Board. This new feature, integrated into CargoAi’s existing marketplace and API solutions, is poised to transform how forwarders and airlines handle spot requests, offering unprecedented ease and efficiency.

The Air Freight Load Board empowers airlines and forwarders by providing access to a comprehensive database of available freight directly through the CargoMART Airline App. Key features of this innovative tool include:

– Seamless Search Functionality: Effortlessly browse through a wide array of available freight listings tailored to specific preferences and requirements.
– Direct Connection: Connect directly with the right contacts, eliminating the need for intermediary communication and expediting the booking process.
– Real-Time Updates: Stay informed with real-time updates on available cargo, ensuring timely decision-making.
– Enhanced Visibility: Gain unparalleled insight into the air freight market, enabling informed decisions and operational optimization.

Matt Petot, CEO at CargoAi, expressed the company’s dedication to innovation and customer value, stating, “At CargoAi, we are committed to driving innovation and delivering unparalleled value to our customers. With the launch of the Air Freight Load Board, we complete our value proposition, allowing forwarders to manage spot requests across airlines while empowering airlines to proactively discover these opportunities.”

The CargoMART Airline App, already widely used by airlines and GSAs, requires no API integration or extensive configuration. After a brief online training, users can seamlessly receive and manage spot requests, aided by augmented data. Additionally, a comprehensive market analysis dashboard provides invaluable insights into market conditions, enabling local sales teams to adjust their strategies effectively.

The Air Freight Load Board is now available to airline users, offering a transformative solution to the challenges of modern air freight logistics. For more information and to experience the future of air freight firsthand, visit cargoai.co today.

freight broker tai group

A Prominent Freight Forwarder Faces Impending Layoffs

Just a year ago, Flexport, a technology-forward freight services provider, was rolling. They had raised a significant round of new funding bringing the company’s valuation to $8 billion. Amid the dash to digitize operations at logistics tech startups, Flexport took full advantage of its position in the market. In fact, during the first three quarters of 2021, supply-chain technology startups raised an impressive $24.3 billion. This represented a 58% increase over all of 2020. In short, a boom for the supply-chain tech industry. 

Fast-forward to a year later and the freight forwarder is now cutting 20% of its global workforce. That’s quite a turn of events. Co-chief executives Dave Clark and Ryan Petersen cite falling shipping demand as the principal cause behind the layoff of 600 plus workers. In addition to falling demand, however, improved efficiencies over the operational and organizational levels also resulted in a bloated workforce that was overstaffed. 

Flexport operates across 19 offices and 6 warehouses worldwide. The San Francisco-based company employs just over 3,000 people and has effectively lowered its volume forecasts for 2023. The middle of 2022 was the first sign for many that inflation would be taking a significant toll on consumer demand. Retailers across sectors have been contracting and pulling back from their earlier inventory restocking plans. 

The International Air Transport Association estimated that global airfreight demand contracted by 13.7% last November. The Baltic Air Freight Index (produced by TAC Index Ltd.) revealed airfreight prices worldwide fell 33% over the past year. On the maritime side, US container imports are declining with inbound December 2022 volumes at their lowest since June 2020. Business surged during the pandemic and US freight broker C.H. Robinson Worldwide estimates that too many people had been hired across the larger shipping sector. One of the largest logistics operators, Expeditors International of Washington, just had its earnings estimate lowered in response to a challenging air and ocean-forwarding market. 

Flexport is seeking a more agile future. They will be adding distribution and trucking services that will move the firm more towards a solution-based provider as opposed to just a freight forwarder. They estimate adding up to 400 software engineers to facilitate this shift. Flexport had doubled its revenue in 2021 to an impressive $3.2 billion having moved approximately $19 billion in merchandise across 112 countries. The 2022 revenue estimates were close to $5 billion but have yet to be reported.  

 

   

 

baltimore import mach electronic shipping route import 7LFreight Expands Instant Cargo Pricing and Booking for North American Forwarders Across Both Air and Trucking  import container descartes automation baltimore bridge container freight global trade

7LFreight Expands Instant Cargo Pricing and Booking for North American Forwarders Across Both Air and Trucking 

The global supply chain crisis of 2021 and 2022 underscored the business need for real-time and accurate freight decision-making for forwarders and customers. In order to help North American forwarders provide more competitive service, 7LFreight, a Freightos Group company, today announced the launch of real-time cargo rate management and booking of Less-Than-Truckload (LTL) freight within their platform. 

With this development, forwarders of all sizes can step beyond 7LFreight’s leading comprehensive rate procurement across more than 2,500 cartage agents and 100 airlines, to instant bookings across every major North American LTL carrier, including SAIA, Estes, AAA Cooper and more. In addition, 7LFreight helps forwarders extend the convenience to their customers as well, easily adding predetermined markups and allowing customers to rate and book shipments themselves in just minutes.  

The shift from static rate management and quoting to dynamic bookings extends beyond just trucking. 7LFreight already supports real-time eBooking across an industry-leading collection of major airlines including American Airlines, Emirates SkyCargo, Turkish Airlines, LATAM and others, via an integration with WebCargo.  

7LFreight is used by over 10,000 forwarding professionals through a friendly user interface and accessible API. North America has been one of the fastest growing markets for digital eBookings with over a 5x YoY eBooking growth in the region. Forwarders can request a demo for 7LFreight’s freight rate management and booking tool at 7LFreight.com/ltl

About 7LFreight, a Freightos Group Company

7LFreight is a highly effective freight rate management, pricing and booking tool for North American forwarders. With its uncompromising commitment to providing world-class customer service, 7LFreight is used by over 1,250 offices worldwide with over 10,000 transportation professionals relying on 7LFreight as their primary source of rate information. Since its acquisition by the Freightos Group in early 2022 and subsequent integration with WebCargo, air cargo eBookings have been made possible across dozens of airlines, including leaders like American Airlines, Emirates SkyCargo, Qatar Airways, Turkish Airways, and many more. More information is available at 7LFreight.com 

7LFreight joins WebCargo as a leading platform for live air cargo rate distribution and bookings between hundreds of airlines and 3,500+ forwarders across over 10,000 forwarding offices. Freight forwarders can access dynamic capacity, pricing, and eBooking by signing up for free at webcargo.co. 

The Freightos Group also operates freightos.com, the world’s largest digital freight platform for the trillion-dollar international shipping industry, and the Freightos Baltic Index, the only daily container index, in collaboration with the Baltic Exchange. 

Founded by serial entrepreneur Zvi Schreiber, Freightos is a logistics technology pioneer with a worldwide presence, and has raised over $120 million from leading venture funds, including GE Ventures, Aleph and the Singapore Exchange. In June 2022, Freightos announced that it would merge with GESHER I (Nasdaq: GIAC) with the intent of going public on the Nasdaq (CRGO).

containers china

74% of Freight Forwarders from Asia affirm Market Opportunity for Shipper owned Containers in the Region

The market opportunity for Shipper-owned containers (SOCs) is recognized by 74% of freight forwarders as surveyed by Container xChange. Pudong Prime, a freight forwarder from Asia recently experienced exceptional demand for SOCs from Vietnam. Recognizing the opportunity, Pudong Prime ventured into expanding its market in Vietnam leveraging the digital operational support of Container xChange, an online container logistics platform.

Growth in acceptance for Shipper-owned Containers has been triggered by market uncertainties caused by supply chain crises globally over the past two years. This created a thriving environment for Shipper owned containers globally. Asia developed as a key market for SOCs, according to the analysis by Container xChange.

Pudong Prime, an international freight forwarding company, with a key focus on SOCs, observed that freight forwarders and shippers are increasingly identifying the competitive advantage of SOCs over COCs with their low pick-up charges and D&D charges. 

Commenting on the newfound opportunity in the SOCs market, Wilson Le, Marketing Development Strategy, Pudong Prime said, “We have gained a competitive advantage with SOCs as compared to the high detention charges and equipment shortage associated with COCs. We’ve achieved a cost advantage due to the lower pick-up charges with SOCs compared to COCs.”

Christian Roeloffs, Co-Founder and CEO of Container xChange, said, “The rise in awareness for SOCs shows that industry participants are responding to the supply-chain pressures by diversifying their sourcing strategy. Lack of transparency and standardized digital processes has fueled inefficiency for a very long time in the logistics industry. These struggles are further worse for shipper-owned containers where no carrier takes care of processes. This hinders the adoption of SOCs in the market. With the adoption of digital tools, all of this could be streamlined in a manner that there is a standardized procedure for all users.”

Container xChange has helped Pudong penetrate by simplifying its operations and contributing to a better business flow, explained, Wilson Le Marketing Development Strategy, Pudong Prime, “Our aim was to limit unforeseen situations with SOC operation at both the origin and destination to avoid bad trips. And with Container xChange’s real-time Connect tool we achieved just that and gained more operational control.”

“We were able to proactively connect with numerous affiliated inland depots to coordinate the leasing pick-up and drop-off locations. This reduced many unforeseen errors and setbacks. “, he added.

In half year, Pudong Prime has made 16 new partners and leased 659 containers to 18 locations in North America and Canada and continues to grow the volume of containers leased through the Container xChange platform.

To read the case study further, visit: https://www.container-xchange.com/blog/customer-success-story-pudong-prime/

About Container xChange   

The container is one of the most impactful innovations in history—using standardization to power globalization and lift billions of people out of poverty. But contrary to the standardized container itself, most processes in container logistics have not been standardized nor innovated — and are still frustratingly complex, manual and error-prone. Combined with thin margins, this makes it difficult for logistics businesses to survive and thrive.

Container xChange is the leading online platform for container logistics that brings together all relevant companies to book and manage shipping containers as well as to settle all related invoices and payments.

The neutral online platform that:

  1. connects supply and demand of shipping containers and transportation services with full transparency on availability, pricing and reputation,
  1. simplifies operations from pickup to drop-off of containers,
  1. and auto-settles payments in real-time for all your transactions to reduce invoice reconciliation efforts and payment costs.

Currently, more than 1500+ vetted container logistics companies trust xChange with their business—and enjoy transparency through performance ratings and partner reviews. Unlike limited personal networks, excel sheets and emails you rely on, Container xChange gives its users countless options to book and manage containers, move faster with confidence and increase profit margins.

About Pudong Prime Vietnam 

Pudong Prime Vietnam has been in the freight logistics game for more than 21 years and remains on the list of the top fifteen freight forwarding companies from Asia to the USA and Canada.

Unlike traditional forwarding companies, Pudong specializes in SOC transportation from main shipping lines. By utilizing these shipping lines’ containers for extended periods, the company provides the necessary storage and long-term container occupation services and addresses the issue of high detention fees.

 

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Robots Paying the Bills For Freight Forwarders

Vector.ai (Vector), the productivity platform for freight forwarders, today announced the introduction of payment integrations; an industry-first, furthering freight forwarders’ ability to automate their operations and free up their human workforce.

These integrations bring together Vector’s AI workflows, financial payments, automated accrual reconciliation and sleek workflow interface to empower freight forwarders with an ability to pay the creditors much faster, reducing goods clearing times.

Vector customers will have a live view of which payments need to be made and will be able to simply press a button to clear them all from the Vector application, automating every step of the payment process. Users will be able to select which financing solution is right for their circumstances or set up custom rules from a variety of financial partners to automate much of the decision-making.

When it comes to paying back financiers, these accruals will be reconciled against the original invoice, maintaining a holistic view of payments at all times and providing a deeper visibility into a forwarder’s financial health as well as actionable insights applicable to future bookings.

Customers will have access to an advanced ecosystem of payment partners that can be configured at the creditor level, enabling the user to simply click the ‘pay’ button. Automatic reconciliation will transfer accruals to ‘posted’ and then ‘paid’ when the user presses the ‘pay’ button.

Vector’s platform will scan documents and automatically add any accruals for transaction fees into CargoWise TMS against the shipment with the correct creditor code. Users can keep track of their payments through Vector’s sleek and easy-to-use workflow interface that manages your finances via an inbox with all pending payments, payment statuses and tracking, and cash flow monitoring at a company or shipment level.

The 360 degree payment capabilities will work seamlessly with Vector’s existing suite of financial capabilities such as AP invoice sortation, instant payments and centralized finance communication.

forwarding corridor

In the ‘Age of Disruption’, Shippers are on the Hunt for “Elastic” Freight Forwarders

The freight forwarding industry is at something of a crossroads. In the ‘age of disruption,’ shippers need freight forwarders that enable “elastic” operations—the ability to rapidly scale operations up and down in response to market conditions. Basically, companies with “inelastic” operations aren’t responding quickly enough to either disruptions OR rising demand, adding further stress to a gridlocked supply chain.

Freight forwarding has always been a manually intensive business, so it’s almost never scaled effectively. There’s long been a linear connection between bringing on new shippers and the need to hire enough staff to service those customers. This has only been exacerbated by the challenges facing the industry today that wreak havoc on supply and demand; the continued three-year disruption from COVID-19, the Russia-Ukraine War and…. well honestly whatever happens next.

This environment has also resulted in more demand for durable goods and imports which means mechanically more work—and more scaling complications—for freight forwarders.

So how can forwarders look to the future? How can they seize opportunities to scale with the needs of their shippers and, ultimately, serve their shipper customers more effectively?

With the current labor market so constrained and with geopolitical and natural events firing shockwave after shockwave into the system, those are the questions every forwarder should be addressing.

Hiring smartly is part of the answer. The industry would benefit from an influx of ambitious young recruits, but the reality is that there is stiff competition for talent and the nature of forwarding requires expertise and training that takes six months or more before an individual is fully operational. Once trained, retention is an increasing challenge. .

Ultimately, the conversation has to not only turn to technology, but revolve around it.

The most innovative forwarders are actively examining which legacy processes, powered by manual operations, can now be performed – or at least scaled – with technology. They are seeking smarter ways to streamline operational workflows in order to unlock their ability to win more business and still continue to deliver outstanding service.

If forwarders can identify those manual process roadblocks, and then figure out the right tech to implement and simplify – traditional forwarders can become more digital and scalable than was ever thought possible.

Here’s a fantastic example: Team workflows around customs declarations . The status quo of high volumes of emails and PDFs bouncing between inboxes, a spaghetti of complex information to untangle and inconsistent best practices means that a customs broker has now effectively become a knowledge worker. A broker can spend countless hours preparing a declaration, chasing key information, manually keying into systems and reconciling against shipment data to ensure the right actions are performed at the right time to keep a shipment moving and penalty free.

Technology now exists that can understand, triage and act on this data like never before. Machine learning – which is designed  to understand the human interactions that drive knowledge work – is uniquely positioned to meaningfully impact the forwarding industry, provided it is harnessed correctly. Smart automation, built on a foundation of machine learning, can enable operators to process shipments more quickly and with more certainty for their customers.

Automating these processes isn’t a pipedream, either. That technology exists in a robust form today and it’s being adopted by forwarders who have their eye on what the future of the industry looks like. Not a future 25 years off, but rather the next three to five years. The benefit to such forward-thinking forwarders is that operations teams can finally decouple their linear relationship between headcount and customer count. They can dramatically decrease their biggest cost line item – operational cost per shipment – and by bringing their intangible manual operations into the digital realm, they can realistically provide insights into their operations to their shippers.

Technology deployment that achieves elastic operations resonates with shippers. With the lens of these uncertain times, shippers are becoming pickier and savvier about finding strategic partners who prove they know how to handle the volatility of these times, and who can build more resilient and flexible supply chains.

These modern, savvy shippers want to work with forwarders who have the right tools to future- proof their own operations and that can deploy the right technology stack to scale their capacity and evolve with the market.

If you’re a forwarder, you’ll need to demonstrate that to shippers. If you can’t, well—they’ll find a forwarder that can.

About the Author

James Coombes is the co-founder and CEO of Vector.ai, an automated operating system for freight. From bookings to accounts payable workflows, Vector.ai aims to fully automate the shipment lifecycle. Coombes has a bachelor’s degree in biochemistry from Imperial College London and an MPA from Harvard University.