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GLOBAL FORWARDING: BIGGEST, FASTEST SAVINGS FOR GLOBAL SUPPLY CHAINS

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GLOBAL FORWARDING: BIGGEST, FASTEST SAVINGS FOR GLOBAL SUPPLY CHAINS

Increasingly complex omnichannel business models are resulting
in correspondingly complicated global supply chains. Maximizing
efficiencies for time and cost in moving freight around the world
is mission critical. This paper takes a high-level look at three
opportunities for optimization: cargo consolidation, cargo risk
management, and customs management.

The multichannel retail business model, along with increasing levels of global sourcing, have created staggering opportunities for importers and exporters around the world, whether huge multinationals or small companies shipping globally for the first time.

Global supply chains are becoming longer and more fragmented,
presenting significant new issues for logistics professionals. In one
survey, 104 global supply chain executives reported that visibility
(21.1%), fluctuating consumer demand (19.1%), and inventory
management (13.2%) were their biggest challenges (1).

Many factors add complexity to global supply chains, including longer lead times and lead-time variability and an increasing number of suppliers, partners, carriers, customers, countries, and logistics channels. Contrary to what you might think, global freight forwarding can offer relief for these concerns and when people, processes, and technology are leveraged, can even offer competitive advantages.

10 Approaches to Savings in the Global
Forwarding Supply Chain

EASY

1. Align shipping activities to leverage benefits of consolidation
services.

2. Minimize financial impact of cargo loss and damage by
purchasing marine cargo insurance.

3. Take advantage of transportation providers’ TMS to create
visibility and take control of the supply chain.

MODERATE

4. Develop strategies to match service modes with inventory
planning and sales forecasting.

5. Create a risk management strategy—identify and understand
risk types, probabilities, and potential costs.

6. Integrate with a single transportation provider’s TMS and
connect with suppliers and carriers globally.

DIFFICULT

7. Effectively use Incoterms® when negotiating with suppliers to
impact unit price, cash flow, inventory levels, and logistics costs.8. Actively engage with a customs professional to deploy best
practices in customs management.

9. Leverage transportation provider’s business intelligence
reporting and analytics to improve supply chain performance.

10. Utilize PO management to control the purchase order lifecycle;
go upstream to supplier order fulfillment logistics activities.

CARGO CONSOLIDATION

What it is
Few companies can fill an entire ocean or air container with their
own freight. Both ocean and air carriers require shippers to work
with freight consolidation services to accommodate small volume
shipping needs. These freight consolidators accept complementary
freight from multiple shippers, and consolidate freight all kinds
(FAK) containers for ocean shipping or unit load devices (ULD) for
air. This results in better freight rates and cargo security measures.

Why it’s important
One of the biggest areas for savings in a global supply chain is
taking advantage of space. Companies of any size can use freight
consolidation services, but it’s particularly useful if you have a lean
supply chain or operate in a just in time environment. Using logistics
efficiencies from freight forwarders, consolidators, and third party
logistics providers (3PLs), you can choose to move smaller quantities
of material more frequently. In doing so, you make a strategic
decision to spend more on consolidation shipping services and less
on inventory, storage, returns, and other costs.

Ocean versus air
Whether air or ocean consolidation is the right choice for you
depends on the required service level and transit time. Globally,
ocean is the less expensive transportation method. That cost
advantage must be carefully weighed against longer transit times, as
well as potential delays caused by adverse weather conditions, port
strikes, or other issues.

In addition, there are faster and slower ocean options. Some ocean
freight goes directly to the port of call. Other shipments can stop at
multiple ports of call, which is less expensive, but takes longer and
is more prone to unexpected disruption. Working with a reputable
freight forwarder can help reduce unexpected supply chain failures
and delays, and provide options if disruptions occur.

Air freight consolidation service is a faster, more expensive option
than ocean, but here, too, there are faster and slower options that
determine the cost. For example, if you don’t need direct service
(next flight out), choose a slower transit time at more favorable
pricing.

Best Practices for Cargo Consolidation

Choose a forwarder with:

-Sufficient freight volumes to effectively consolidate without delays and to aggressively negotiate rates with ocean and air carriers.

-Dedicated space allocations for capabilities when they are needed.

– Work in major markets with high flight capacity.

Generally, in any type of transportation, the more time there is between pickup and delivery, the less you pay. In air, for instance, use providers with gateways (vs. a hub and spoke approach)
to get cost-efficient options that meet your deadlines. Use consolidation schedules if you can for more savings.

CARGO RISK MANAGEMENT

What it is
Global shipments are exposed to risk from a wide range of human
and natural forces. Yet, global shipments are subject to a unique set
of international laws and/or treaties that limit the liability of carriers. Whether you import or export, you should understand the various types of risks that cargo could face and how you can help protect the value of the goods shipped globally.

Why it’s important
Even with proper packing, stowage, and securing of containers on
a container ship, severe weather and rough seas can cause rare but
catastrophic events like ship groundings, structural failures, even
collisions, any of which can result in loss of cargo. On average, the
World Shipping Council estimates that there were 1,582 containers
lost at sea per year between 2008 and 2016; 1,012 of these
containers (64 percent) were lost due to a catastrophic event.2 Theft, counterfeiting, hurricanes, floods, political unrest, labor disputes, documentation errors, or mechanical problems can also delay or ruin delivery of the most perfectly planned global shipment. Protecting the value of products while they are in transit across the globe can have a significant impact in protecting the bottom line.

Air and Ocean Carrier Liability

When events occur, companies are often dismayed to find that not
all risks or damages are covered by carrier liability.

Air carriers are not liable if damage was caused by:
-An inherent defect, quality, or vice of the cargo
-Defective or insufficient packing of the cargo
-An act of war or armed conflict
-An act of a public authority carried out in connection with the
entry, exit, or transit of the cargo

Even if an air carrier is held legally liable for damages, they pay the
value of the goods or 19 SDRs3 per kilogram, whichever is less.
If a ship experiences an extraordinary sacrifice or expenditure at sea,ship owners may declare general average. The concept of general average hearkens back to the days when a crew tossed cargo overboard to lighten the ship in a storm. During the emergency, there wasn’t time to figure out whose cargo should be jettisoned. After the fact, to avoid quarreling, merchants whose cargo landed safely would be called upon to contribute a share or percentage to the merchants whose goods were tossed overboard to avoid imminent peril. Today, general average declarations still mean that all the merchants with freight on the vessel are required to share in the cost of the expenditure before the goods are released.

General average is a growing risk and concern for many risk
managers and insurance experts. In recent times, there has been a
rise in the frequency and severity of extreme weather events that
have led many vessels to become grounded, causing container loss
and/or vessel damage. In addition, fires on container vessels are
more common now than in the past.

Today, when these events occur and general average is declared:

1. Ship owners have a lien on the ship’s cargo. At the time
the voyage is completed, the level of sacrificial losses will not
normally be known. Ship owners will usually call for security
from cargo interests, against which the assessed contributions
can be enforced. The amount of the claim is usually calculated
by average adjusters, appointed by ship owners. Each cargo
owner’s contribution is calculated on a percentage of the cargo
owner’s interest or commercial invoice value, ranging from
1 to 100 percent.

Ship owners have a lien on the cargo until each cargo owner’s
contribution or security is satisfied. Unless a shipment is secured
with all-risk marine cargo insurance, the cargo owner will be
required to post their contribution or security in cash before
their cargo will be released. As the frequency of general average
declarations has increased, so has the amount of the required
securities—from about 12% a year ago to about 50% today.

2. Ocean carriers are not automatically liable for loss or
damage to your cargo. The U.S. accepted the Hague Rules in
1936 through the passage of the Carriage of Goods by Sea Act
(COGSA). The rules expressly remove the ocean carrier’s liability
for loss or damage to cargo that arises from one of the 17 stated
liability exclusions. Legal liability claims are often met with
resistance by carriers.

Even if the ocean carrier is found liable at the end of a legal
process that can take months to settle, their limit of liability
under COGSA is $500 per package or customary shipping
unit, or the actual value of the goods, whichever is less. In other
words, the onus is on you to assess and minimize your
risk exposure.

Best Practices for Cargo Risk Management

-Buy the appropriate amount of marine cargo insurance for ocean or air shipments.

-Ensure the valuation clause for a given shipment defines the maximum amount an insurance company will pay for a loss. Most valuation clauses include the commercial invoice value and any prepaid charges associated with the shipment, such as freight, customs clearance, or duty. This clause can be modified to include other charges or profit margin—if requested and approved by underwriters.

-Choose an insurance intermediary with experience or specific training in international logistics and transportation insurance.

Calculating Costs to Determine Risk Exposure

The risk of lost cargo is real. Yet, without a crisis to motivate
action, most companies place risk management at the bottom of
the priority scale. The most common method used to protect the
value of goods from physical damage, theft, or other calamity is the
purchase of marine cargo insurance.

The first step you can take is to understand your risk exposure
by tying dollar values to varying types of risk. The challenge is
quantifying the potential cost. You can brainstorm to gather that
information, or can work with a logistics provider that has in-house
risk management professionals to help uncover potential liabilities
in the supply chain.

You can apply subjective probability to calculate possible losses. In
other words, you can estimate the chances of a risk event happening
and multiply it by the cost if it did happen (see below). Once the
dollar amount is calculated, the next step is to reduce the expected
loss by reducing the probability of the occurrence, or the cost of the
occurrence.

Armed with subjective probability estimates, you can effectively
buy the appropriate amount of insurance. While insurance is readily
available, it is your responsibility or the consignee’s to ensure the
coverage purchased best fits the unique exposure.

CUSTOMS MANAGEMENT

What it is
Most companies choose their customs broker for the long term.
That’s because the customs broker must truly understand your
company and products. They must also know how to navigate each
country’s compliance requirements with their own specific set of
customs rules, governmental regulations, VAT, duty rate calculations, and payment plans.

Why it’s important
Even simple trade-related mistakes, such as an incorrect spelling on
a declaration, can result in fines, penalties, or even cargo seizure.
Penalties for transgressions can be severe, depending on the
seriousness of the infraction.

For example, U.S. Customs and Border Protection (CBP) imposes
fines of up to $10,000 per entry for recordkeeping infractions.
Non-financial costs, such a shipment delays, the diversion of staff
resources to correct problems, and in rare instances, the loss of
trade privileges, can be detrimental to an importer’s business.
When you work with Trusted Advisor® experts in customs, you can
learn where the most common mistakes occur and implement best
practices to avoid them. In addition, CBP can conduct a customs
focused assessment—essentially, an audit—with any U.S. importer. A
customs expert can help your company prepare before, during, and
after a focused assessment to minimize risk exposure.

Compliance programs and options that are worth investigating
Not every compliance option will fit or resonate with every business.
Discuss specific issues with an attorney or Trusted Advisor® expert
in customs compliance and learn which elements might be the most
useful. Always seek out an expert opinion.

-Customs bond sufficiency. If you import into the U.S., you must
have a customs bond, generally 10% of the duties and taxes
you expect to pay to CBP for import transactions throughout
the year. CBP can shut down all imports if they discover you
have an insufficient customs bond. Since tariffs (and duties)
are increasing substantially, existing bonds may no longer
be sufficient. Bond insufficiency will lead to additional costs
and delays if not monitored or addressed in a timely manner.

Consider the increased duty amounts well before the bond
renewal period comes up. If the customs bond will need to be
significantly higher, the surety company may require additional
documentation—including financial statements and possibly
letters of credit—before they issue a new customs bond, all of
which will take time to get into place.

-Duty drawback programs. Duty drawback programs refund
99% of certain import duties, taxes, and fees for goods that are
subsequently exported; this supports both U.S. manufacturing
and foreign export sales. Before 2018, duties might only have
been in the 1% to 2% range, and since there is paperwork to file
to get the refund, many companies did not bother with it. Today,
those 1.2% duties have jumped up to 25% in some instances,
making duty drawback programs a potential game-changer for
your business. The downside: duties must be paid up front; your
company may wait for 1 to 2 years to receive the refund under
the current drawback environment, which can become a cash
flow issue for some companies.

-Foreign trade zones (FTZs). Foreign Trade Zones (FTZ) are
secure areas located in or near CBP ports of entry, and are under
CBP supervision. Unlike duty drawback programs, companies
don’t have to pay duties when goods enter an FTZ. Instead, FTZs
enable duty deferment; the duties are paid when the goods
enter CBP territory for domestic consumption. At that point, the
importer pays the duties at the rate of either the original foreign
materials or the finished product.

-Exclusion requests. If a company thinks their product should
be excluded from Section 232 and Section 301 tariffs, they can
request an exclusion. When filing an exclusion, make certain that
the classification used is the best classification for the product.
Also, work with a trade attorney; they can help you navigate
the law and apply it to a specific product so the exclusion isn’t
rejected on a technicality.

-Changing sourcing locations. It’s not always easy to change
suppliers, but some companies are looking at it in a new era of
tariffs. Yet, suppliers for some materials are only found in China,
and even if you locate a source in another country, there can be
issues. Can they supply at the necessary level? How long will it
take to test the new supplier against specifications? The more complicated the product, the more challenging a switch will be.
Also, keep in mind that if the cargo ships from Singapore but its
origin is China, U.S. tariffs may still apply.

-Incoterms®. Incoterms®, or International Commercial Terms,
are published by the International Chamber of Commerce.
They are the rules that define the responsibilities of sellers and
buyers for the delivery of goods under sales contracts, and
they establish where the transfer of risk takes place. However,
they vary from situation to situation. For example, if a container
being moved across the ocean from Shanghai to the United
States falls overboard, who is at risk? The Incoterms® tell the
story. If the U.S. buyer purchased the product FOB (free on
board), the importer took responsibility for the risk as soon as
the freight was loaded on the vessel in Shanghai. If the same
product was purchased DDP (delivered duty paid), the shipper
would be responsible until the product reached the purchaser’s
door in the United States. You can save money if you ensure
your purchasing team understands how Incoterms® rules will be
applied to freight.

Best practices in Customs Management

-Buyers are not transportation and compliance professionals who understand Incoterms®—they choose suppliers based on favorable pricing. You can establish internal structures or education to help buyers understand how Incoterms® impact risk management and pricing.

-Rely on a customs professional to leverage U.S. Customs data. They can combine a company’s unwieldy historical shipping data into usable trade reports to reveal whether an organization is taking proper advantage of free trade agreements around the world.

GLOBAL TECHNOLOGY CAN TIE IT ALL TOGETHER

As companies large and small continue to expand internationally,
they can no longer afford to single-handedly manage the countless
details and nuances of global freight forwarding. Shortened lead
times, the use of multiple transportation modes and carriers to
deliver product efficiently across continents, and an environment
fraught with risk requires both worldwide and regional management
of cargo flows.

Many companies rely on a transportation management system
(TMS), hoping to keep their fingers on the pulse of their global
supply chain providers. However, TMS products were developed
initially to track domestic or regional truck shipments and to
automate tedious, low-value processes performed by an enterprise’s
transportation staff. Today, few TMSs can enable global visibility to
every shipment, or can interconnect disparate systems on multiple
continents to provide the level of visibility to show where products
are at any given point in time.

A truly global supply chain network has a single TMS architecture
that spans all continents. Global visibility enables your organization
to clearly see the entire supply chain. Utilization reports for multiple
services and modes (air, ocean, rail, and road) on all continents
confers specific strategic advantages:

-Continuous improvement to supply chain logistics in real time

-Access to business intelligence, crossing all freight and spend.categories to strategically understand the impact of decisions

-Access to a centralized network of multiple providers–without
integrating individually with each provider

Work with a logistics provider that offers a full suite of services,
manages service performance, consistently communicates
performance metrics, and offers strategic optimization to gain
distinct advantages in the marketplace.

A case in point: purchase order management

-Purchase order management (POM) within a TMS delivers end to end visibility throughout the purchase order (PO) life cycle. POM enables you or your provider to manage shipment windows, work
with overseas vendors to coordinate bookings, manage exceptions,
collect and distribute documents, and provide reporting at the shipment and PO/line item level.

-POM options include PO tracking and visibility, reporting, online booking, document management, check and verification process, vendor self-service, vendor management, exception management,
and PO and shipment analytics.

5 Questions to Ask a Potential Global Freight Forwarder

IS YOUR TMS TRULY GLOBAL? There should be one system architecture that works across regions and covers all types of transportation.

CAN YOU PROVIDE CAPACITY OPTIONS?
They should ship goods by ocean, air, rail, and truck,
choosing the option that best aligns with the business
need. Ask about their consolidation programs to
optimize spend, routings, and transit time performance.

DO YOU HAVE “BOOTS ON THE GROUND” IN KEY
GEOGRAPHIC REGIONS?
Your global freight forwarder should think globally, act locally.
That is, they should know global transportation, but also
have deep knowledge of the local population, infrastructure,
languages, politics, economy, customs, currencies, tax laws,
and tariffs for each country your shipping routes touch.

CAN YOU HELP ASSESS CARGO RISK?
They must adequately help you assess and mitigate cargo
risk to help protect your bottom line.

DO YOU OFFER CUSTOMS ADVICE?
They should be experts in leveraging customs information
and programs to your company’s advantage.

 

_________________________________________________

1. “What is the biggest challenge you are facing in your supply
chain?” eft Supply Chain & Logistics Business Intelligence,
April 2018. Accessed at https://www.statista.com/
statistics/829634/biggest-challenges-supply-chain/.

2. “Containers Lost at Sea-2017 Update,” World Shipping
Council, 2017.

3. SDRs, or Special Drawing Rights, refers to a basket
of currencies designed to iron out currency exchange
fluctuations in International valuations, now used to express
the limitation under the Hague-Visby Rules and the MSA
Limitation Convention.

4. “Global Trade, Trade Statistics,” World Shipping Council,
2018. Accessed at http://www.worldshipping.org/about-theindustry/global-trade.

5. “Containers Lost at Sea-2017 Update,” World Shipping
Council, 2017.

6. Larry Kivett and Mark Pearson, “Understanding risk
management in the supply chain: Using supply chain data
analytics to drive performance,” Deloitte, 2018.

cold chain

Benefits of Cold Chain Warehousing Solutions

Not many people are familiar with cold chain warehouse solutions. However, if you are in any type of business dealing with perishable items, this is right up your alley. Cold chain warehousing is used to store items that need to be left in cool surroundings and that have a short shelf life. By using them you can prevent your items from spoiling, being attacked by insects and rotting. So, the goal is clear. Life of certain items needs to be prolonged and one of the most effective ways to accomplish this is by using cold-chain warehousing, also known as cold storage or refrigerated warehousing.

Types of products that are in need of cold chain warehousing 

First, you need to know which items are suitable to be stored in such a place. Not all items respond well to cool temperatures. The last thing you want is investing in something that you do not need, like cold storage. For example, after transporting fruits and vegetables it would be a great solution to store them in cold storage space. Hence, if your business involves some of these products you are on the right path of finding the best possible solution for your business load.

Supermarkets and other stores have a tendency to use cold storage for a lot of their goods that are not in store for sale. 

3 main groups of goods 

-Foods that are considered to be alive – fruits and vegetables

-Processed foods that are considered to be no longer alive – fish, meat and any other products that contain the fish and meat

-Items that do not necessarily need be stored in a cool or freezing atmosphere, but remain the freshest and of highest quality while in it (tobacco, beer, some oils, some types of flour, etc.)

There are two main options 

One of the great things about cold storage units is that there are many different variations. But, there are two main types of systems. First comes the vapor absorption system (VAS), followed by vapor compression system (VCS). These two systems are not cardinally different from one another. Yet, there are some important differences that need to be acknowledged. The main one being the technique in which energy input is fed to the system. To be sure you are making the right choice when making this large purchase, we strongly advise you to speak to an expert. Sooner or later you will have to learn the difference between the two systems.

Main benefits of cold chain warehouse solutions 

Still, you might not be persuaded and convinced that this type of storage will improve your business. Nonetheless, after reading these benefits, it is very likely that the next thing you do will be exploring your options in purchasing a cold storage unit. Cold chain warehousing solutions in combination with transport technologies for air cargo can be one of the best solutions for storing and moving perishable goods.

Fruits and vegetables are items that are very difficult to store because they are very sensitive to temperature and even humidity. 

The array of usage doesn’t limit you 

One great thing about cold storage is that the temperature within the unit can be easily adjusted. That isn’t all. In addition to temperature, humidity can also be controlled. Humidity, just like temperature, can be a huge factor in saving the freshness and quality of the items. These two benefits, with an airtight closing mechanism, make this a great storage option.

Customize to fit your needs 

More modern units can be customized so the temperature range and size of the unit specifically fit your storage needs. For instance, if you do not need freezing conditions, but dry and cool, your needs can be accommodated. This is a perfect option for those that import oils and fats. As a cherry on top, your unit can be fixed or portable. There is an abundance of options. All you have to do is choose the bests options for your business requirements.

Great backup and organizing option

This can be best described in an example. For argument’s sake, let’s say you are a restaurant owner. One day, out of the blue, the power shuts down and there is no electricity in your restaurant. If you are a fan of cold chain warehousing solutions, you might survive the electricity outage without any loses. If all goods are quickly moved and expedited to the cold storage space, it is very likely they will not lose their value and end up as garbage.

In the long run, you are saving money 

The initial investment is not small, but it will certainly save you money in the long run. Surely you know how much goods you’ve tossed in the past years. Imagine preserving and using or selling at least half of what you tossed. That can add up financially. Minimize waste and give yourself an option to purchase items in bigger bulks for a significantly lower price.

Investing in cold storage might initially turn out to be a financial hit, but it will pay off in the long run. Alt text: suitcase filled with dollar bills and with other bills around it.

______________________________________________________

Danny Segno is a New York native, but currently, she lives in Boynton Beach Florida. For the past two years, she has been working for Authority Moving Group, a professional moving company. Danny enjoys her job because she likes working with people and helping them. Since she is a customer care specialist, she focuses on customer satisfaction. 

 

CarrierGo

Blume CarrierGo Provides Motor Carriers with All-Encompassing Business Solutions

This year’s Intermodal Expo in Long Beach, California featured some of the latest solution offerings disrupting the transportation sector. Among leading industry experts including logistics and supply chain solutions provider, Blume Global unveiling their latest product offering, Blume CarrierGo. Blume Global boasts over 25 years of transportation solution offerings in the cloud enabling international multimodal operations including shipment planning, execution, visibility, invoicing, invoice processing & settlement.

“Blume CarrierGo is a product we created that offers our global network of 7,000-plus carriers more than just execution, adding more value for both the carriers and the drivers,” explains Glenn Jones, GVP Product Strategy at Blume Global. “CarrierGo is localized in 22 languages and utilized by customers around the globe, so it’s not limited to the United States. This solution enables carriers to increase turns per day while reducing empty miles and maximizing efficiencies.” 

The days of manual processes are becoming a thing of the past, particularly in transportation and carrier services as automation continues setting a new and more improved standard of streamlining operations. Blume CarrierGo solution identifies processes such as appointment scheduling for carriers lacking levels of automation needed for optimization. Another example is opportunities with street turns found within the Blume import and export-heavy freight forwarding customers.

“We have insight into what independent freight forwarders might not be able to see, such as import and export maps leading to an opportunity for a street turn recommendation or automatic allocation. Dwell times also provide an opportunity for automation. We may have 20, 30, or even 50 carriers trying to pick up containers out of the same terminal. By leveraging our visibility across multiple freight forwarders we can either make recommendations or we can delay making appointments through the insight we have into marine terminals with delays,” Jones adds. 

And how about invoicing? Blume covers all bases for carriers in terms of accessorials and eliminating the element of surprise when it comes to unpredictable charges backing up processing times. The Blume solutions process requires carriers to gain approval for accessorials before they even happen. 

“If a carrier needs to get to a port and they’re unable to, there might be a demurrage charge or there might be a carrier in a dwell time charge situation unexpectedly. They can gain approval from the buyer for that accessorial and when it appears on the invoice days – or hours later, there’s no surprise and the invoice will be processed faster,” Jones adds. “This is particularly useful for carriers in 3rd world countries, where the carriers tend to be much smaller and require payments quicker than what the freight terms offer,” Jones adds. 

Processes like these are found within the CarrierGo solution, providing maximized efficiencies and reducing costly and time-consuming overhead freight audits and manual payment processes. Carriers are not only paid on time, but have increased opportunity for invoice factoring discussions in international markets. This is a major differentiator found within the Blume solutions structure impacting global scale capabilities across the supply chain, creating seamless flows between all players and competitors in the multimodal sector. 

For more information about how Blume CarrierGo can improve your cargo needs, please visit booth 512 at Intermodal Expo or visit Blume Global on the web. 

__________________________________________________________

Glenn Jones, GVP Product Strategy, Blume Global

 Glenn has a proven track record of growing businesses by building and leading product management/marketing and R&D organizations to define, develop, position, and sell highly innovative and high value enterprise solutions delivered in the cloud. He was formerly the COO of Sweetbridge and the CTO of Steelwedge Software. He also held leadership positions at several other companies, including Elementum and E2Open.

airfreight

Airfreight vs. Sea Freight – Which Works Better

Airfreight vs. sea freight has become a burning dilemma for all those in need of this type of services. While both solutions come with a set of advantages and disadvantages, the final choice one makes will depend on a variety of factors. We are willing to share our knowledge and findings with you so that you can make the best possible decision regarding your shipment in the given circumstances. 

Airfreight vs sea freight – the costs can be a decisive factor

Undeniably, the amount of financial means necessary to afford airfreight services is considerably higher than that of sea freight. Moreover, the appearance of the largest cargo aircraft in the world announces great changes and improvements in this field. The Antonov An-225 could cause a further rise of the airfreight costs, but it will also guarantee higher quality. On the other hand, sea freight is much more affordable and, consequently, the number one choice of a vast majority of clients. Opting for sea freight provides clients with acceptable service but at a significantly lower price.

Time matters greatly!

Most often, clients want their shipment delivered as soon as possible, which can cause problems for those offering sea freight services. Not seldom do customs issues or hold-ups at ports cause serious delays. However, we must admit that a giant step forward is evident in this field. Firstly, high-quality, modern ships are much faster now than it was the case in the past. Secondly, there are some canal upgrades that can eliminate tedious and tiring delays on some routes. Finally, sea freight forwarders can guarantee delivery times, which is vital for business owners when it comes to organization.

The type of cargo affects the final choice on airfreight vs. sea freight dilemma

The type of cargo is one of the most important factors influencing the choice in the airfreight vs. sea fright dilemma. In this case, we must admit that sea fright seems like a much better solution since it has no limitations you have to be aware of. One of the crucial pros of the maritime shipping is that you can ship even the bulkiest and extremely heavy goods. Conversely, airfreight is limited in this discipline. Before you opt for this type of goods transportation, it is advisable to make sure that the type of your cargo is acceptable. In addition, there is a very long list of the items which are prohibited and those listed as hazardous materials. Depending on your final destination, the rules and laws may differ. Yet, getting sufficient information on the subject must still be the first step in the process.

Safety of your cargo is the top priority

Understandably, the safety of cargo is always the top priority. It is important to emphasize that air cargo has to be dealt with the utmost attention and in accordance with the regulations which are very strict and clear. All the crucial elements, including handling and securing your cargo as well as the proper storage, are defined by airport regulations. This is a great benefit and a guarantee that the safety of your goods will be at the maximal level. On the other hand, we cannot say that sea freight is a bad alternative either. In this case, the goods are transported in containers, but the human factor is crucial. Proper packing strategies are essential in order to decrease any chances of potential damage during transport. If this is not conducted appropriately, the chances are some of your goods might get seriously damaged or even cause further problems on the ship.

Do not forget about the accessibility of your goods

If we analyze the accessibility of your goods as one of the criteria, airfreight is a more favorable option by all means. The procedures are clear, cargo is in smaller volumes and there are no unnecessary waitings to receive your goods. Using sea freight for your cargo often results in additional costs due to heavy congestions in seaports. If your goods are not delivered at the arranged time, you are required to pay for detention and demurrage costs, which may be a heavy burden on your budget. However, we must not forget to mention an advantage sea freight offers comparing to airfreight. The accessibility to markets is much higher in case of sea freight. The reason is very simple. When unloaded from ships, containers can move further inland by using the services of intermodal shippers

Eco-friendly practices 

Finally, let us not forget about the environment when choosing between airfreight vs sea freight. Applying eco-friendly practices is becoming increasingly important, so it does not surprise this is one of the factors shippers base their decision on. According to this particular criterion, sea freight is a more reasonable option since it has a significantly better carbon footprint. Quite the opposite, airplanes are serious polluters and require special attention and measures to reduce their carbon footprint to minimal values.

Final words on airfreight vs sea freight dilemma

The decisions and choices you make concerning airfreight vs sea freight dilemma will depend on miscellaneous factors. It is of key importance to weigh the pros and cons of each of these options and then make your decision final.  A serious effort is required to negotiate the best shipping terms and only then can you expect to ship your goods completely fuss-free.

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Susan Daniels is a passionate copywriter who loves exploring home improvement ideas and real estate market. Lately, she has gained considerable knowledge in the types of moving services and the qualities of respectable moving companies such as DA Moving NYC, for example. She enjoys giving advice on the best places to live and exciting places to visit. Traveling makes her happy as well as reading good books.

BluJay

BluJay and Damco Take Partnership to the Cloud

Global freight forwarding provider, Damco announced the extension of its partnership with supply chain software and services provider, BluJay Solution this week through a multi-year agreement. The agreement enables the ongoing usage of the Transportation Management for Forwarders platform, now on the cloud through an anticipated upgrade.

“We’ve seen the capabilities added in the past few years – the game has really been upped, and it’s critical in our industry to keep moving forward with technology to stay ahead,” said Martin Ring, Global Chief Operations Officer at Damco. “Damco will take advantage of the continually enhanced functionality available from BluJay to run our business as efficiently as possible.”

Increased efficiencies, productivity, and streamlined customer communications are a few of the named benefits to come through the extended partnership, adding to the eight years between the two companies. File management remains the top priority for Damco and will continue focusing on the accurate and timely solutions benefiting its customer base such as integrated customer solutions.

“BluJay is delighted to continue our partnership with Damco. This relationship evolution is truly indicative of the value customers realize with greater solution adoption over time, supported by people who are committed to their success,” said Chris Timmer, Chief Revenue Officer for BluJay.

“We value the history of our partnership with BluJay,” added Ring.  “Damco has appreciated working with BluJay’s experts for so many years, and they will take us from today to tomorrow to support our business objectives.”

5 Tips on Obtaining the Right Logistics Company

In whatever industry you are in, whether you sell products in a brick and mortar shop or you deal in e-commerce, you do need a logistics company at some point.

Some logistics companies are not reliable at all times and may deceive you into a contract and not deliver afterward. How can you fork out the bad weeds and choose amongst the good logistics companies?

Logistics company capability

Check for the coverage of each freight company by going through each service area listed on their site or catalogs. If a logistics company has knowledge in your specific target area, you will get faster service and efficient transportation of goods.

Above a large service area, a freight company should be able to handle all your needs. You should set out all your requirements before you commit to a contract with any freight company no matter how reputable it is.

Confirm the maximum load capacity if you will be shipping and transporting heavy weighing goods and if there are any extra costs for that service.

Customer Service

The key to finding a reputable freight company is ensuring on how they treat their customers. Checking whether companies respond swiftly will help you know how fast your shipping related queries will be resolved.

Checking online for customer reviews and checking the estimated response time on Facebook, if the company has a Facebook page is a great start. Take for example, online writing service companies, when hiring a one you often read reviews about top companies like EssayGeeks, Rush-my-essay.com, https://www.ninjaessays.com or a-writer.com. You easily come to know about the quality of the services they offer.

Be careful when doing an online check, some companies may fake testimonials on their site, so try to delve deeper into that research. You can also tackle this problem by asking for references of companies that use that freight company.

If a company is clear and responds to your queries, that may be an indication of good customer service. If there is no good communication from the onset, you will likely face major problems in the future.

It doesn’t matter how affordable a company may seem because if that company compromises on customer service, you will face bigger financial woes in the future. Consider the money you will lose if your orders are late by weeks with no sound explanation and how much that will cost you.

Safety and protection offered

The safety and protection of your goods are paramount when it comes to choosing the perfect logistics company. The safety and protection of your goods include insurance that covers damage and theft of your goods even when caused by third parties.

Checking all the documentation of that insurance and doing your own background check of the underwriters will tell you a lot about that insurance company.

For example, it will tell you if a company will really pay out, how reliable it is and how long it usually takes for the cover to take care of all losses incurred. Read all the fine print and terms and conditions before you sign to avoid nasty surprises later on when you claim.

Make sure that the logistics company you choose has goods-in-transit insurance. Other added value services you should look out for are GPS trackers dashboard cameras and advanced driver assistance systems.

Check if the company is also registered with Truck Associations in your State to ensure its authenticity as there will be some level of accountability for that company.

Suiting your needs

This is again something similar to hiring an online writing service. You first check which one will be good for college essays and which one will more be suited for dissertation or thesis. It is then that you decide from services like EssaysOnTime.com, edugeeksclub.com, bestessays.com or Australianwritings.

If you have large shipment requirements, you need to look for freight companies that have warehouses and storage facilities in the areas you wish to ship to. It should also be able to suit your needs of any transportation mode you will require to ship to your destination.

At this point, you also should not compromise your quality of service with affordability because low-cost companies are not always reliable and offer less visibility, which are two factors that are an enemy of progress. However, you also should not pay exorbitant prices, so try to balance out the services offered and the pricing.

If you have a smaller company that needs fast courier services, you can opt for express courier services offered by various companies. Some courier companies offer next day delivery services and these are great because of several reasons.

Some of those reasons are that even if your delivery does fall short, it won’t be delayed for long. Another reason is that your package stays for only a short while at the hands of the courier company, which minimizes the risk of theft and damage.

Real-time data and tracking

Hiring a freight company that offers real-time data and live tracking services for your goods is a valuable factor in your decision-making process. You should go for a courier company that will let you know where you package in real time and get an accurate estimated time of arrival.

Many companies claim to have this feature only to find out later that they actually don’t, so ask for each company to subject you to a sample. Automated systems are taking this industry to higher levels and if a company is not willing to change, it may be an indicator unreliable service.

The importance of this feature is seen when your freight company has unavoidable delays. With that feature, you can tell your customers exactly where their products are and when they can expect them. So, another feature that is important in your decision-making is the accuracy of the data you receive.

Choosing the best logistics company is a hard and tedious task to do but with these points outlined above, you can make the best use of your resources. Saving your time and costs is always good for business.

To save your time in businesses reliant on logistical support, you should aim at getting swift delivery services. Keep a close eye on the customer service you receive and if it starts to change, consider converting to another company before it starts crippling your business. Lastly, always ensure the safety and security of your goods as the damage might prove to more than a monetary loss.

This guest post is contributed by Kurt Walker who is a blogger and college paper writer. In the course of his studies he developed an interest in innovative technology and likes to keep business owners informed about the latest technology to use to transform their operations. He writes for companies such as Edu BirdieXpertWriters and uk.bestessays.comon various academic and business topics. 

Kuehne + Nagel

Kuehne + Nagel Finalize Worldwide Perishable Canada Co. Acquisition

Adding to its current presence throughout Canada, Kuehne + Nagel announced the completed acquisition of Worldwide Perishable Canada Co. (WWP) – known as a leader in tuna exports in addition to being one of the largest freight forwarders in Canada. This acquisition represents forward movement for the company to expand its position as a key provider in perishable cargo.

“We are looking forward to joining the Kuehne + Nagel Group. Combining the strengths of both companies, we will add outstanding value in the regional and international perishables business. For both, our customers and our employees this will generate growing perspectives and services,” said Doug McRae, Chief Operating Officer Worldwide Perishables Canada Co.

WWP was originally launched as a designated forwarder with a focus on local demand. The Halifax-based company brings more than seafood logistics expertise to the table, however. Information released by K+N confirmed more than 17,000 tons of perishable air exports per annum out of Canada will be represented through combining company volumes.

“Perishables logistics is one of our strongest growth drivers at Kuehne + Nagel, thus, we have been continuously investing in the expansion of our dedicated network: through selected acquisitions and by connecting key production countries to major markets,” says Greg Martin, Regional Airfreight Manager Kuehne + Nagel North America. “Setting up global certified standards which are reflected in our KN FreshChain solution, has further strengthened our perishables network worldwide, making it the largest in the industry.”

“Acquiring a specialized player in seafood logistics, Kuehne + Nagel consolidates its leading position in the market,” said Jamie Wood, National Manager Kuehne + Nagel Canada. “Using the network and experience of both companies, our customers can benefit from an enhanced offering and the best possible solution to their needs.”

EFL Selects Pittsburgh Airport for Cargo Distribution Point

Pittsburgh International Airport has been confirmed as the airport of choice by EFL – a Sri Lanka freight forwarder and Qatar Airways customer. EFL announced the utilization of Qatar Airways Cargo’s nonstop service, specifically through one of the two weekly Boeing 777 freighters Qatar currently operates, following its first successful 90-ton shipment in May.

“Today’s announcement continues moving the airport corridor forward as a manufacturing and distribution hub. Congratulations to Christina and her team for this huge success for our region. As Pittsburgh strives to make additional connections to the global marketplace, this is a big step along that path,” said Allegheny County Executive Rich Fitzgerald.

“The success of Qatar Airways, and the partnership with EFL, strengthens our ability to attract manufacturing and distribution to the airport. We are planting the seeds for manufacturing, distribution, logistics and connectivity in the global marketplace. We are excited to see it bear much fruit in the years to come, and to see the growth of jobs in these areas continue.”

A combination of proximity to major air cargo markets and cities positions Pittsburgh International Airport as an ideal choice for global freight forwarders. The Qatar Airways Cargo flights to Pittsburgh contribute to a total of 265 jobs and $42.8 million of economic output. Qatar Airways’ Pittsburgh-based flights represent the first scheduled international freighter route for the airport.

“Our goal is to build Pittsburgh into an international logistics center and with great partners like Qatar Airways Cargo and EFL, that goal is becoming a reality,” Pittsburgh International Airport CEO Christina Cassotis said. “This is cargo that used to enter into the U.S. through major airports such as New York and Chicago but instead they’re choosing to use our region as a gateway. That means jobs and business for our region.”

The addition of EFL serves as another example of how the airport’s gateway maintains competitive advantage through efficient and reliable global supply chain solutions in combination with the exemplary operations of Qatar Airways Cargo, including a 72-hour transit time from the Asia-Pacific region to U.S. regional and distribution centers.

“At EFL, it has been a constant pursuit to find efficient and innovative solutions for our customers, which has led us to this initiative with Qatar Airways Cargo, with who we have a relationship for over a decade,” added EFL’s Group Chief Executive Officer Senthil Shanmugam. “Considering EFL’s spread of seven offices in the USA, (with) five of them in (the) East Coast and Midwest, having a gateway that is accessible to these regions was important. Pittsburgh is a logical location for this operation as it allows us to have a fast turnover of cargo in comparison to more traditional and congested gateways. We’re grateful to the Allegheny County Airport Authority for assisting us with facilitating this effort.”

FIATA Announces “Young International Freight Forwarder of the Year” Regional Winners

Four regional winners for this year’s “Young International Freight Forwarder of the Year” awards were officially announced this week by FIATA, which serves as a collaboration between the TT Club – the competition’s sponsor,  and International Federation of Freight Forwarders Associations.

Regional winners of this year’s award were determined based on dissertation topics addressing specific and complex processes within the supply chain while demonstrating logistics-based knowledge in successful implementation of the processes.

FIATA President Babar Badat announced this year’s regional winners and made the following statemen:

“Encouraging more young professionals to join the FIATA community has always been a priority for me. I am encouraged again to see these excellent candidates presenting dissertations that cover a wide range of logistic subjects, which demonstrate the challenges that forwarders face every day and the customized solutions they are able to offer.

“My sincere congratulations to the four regional winners who are ….”

Europe – Mrs. Evgeniya Khokhlova Russia (FAR)

Africa/ Middle East – Mr. Enos Chapra Zimbabwe (SFAAZ)

Americas – Ms. Rachael van Harmelen Canada (CIFFA)

Asia Pacific – Mr. Phillip Burgess New Zealand (CBAFF)

“In the current challenging global trade environment, where supply chains are under increasing pressure to adapt quickly to regulatory, political and economic pressures, we at TT Club believe the training and professional advancement of young freight operators must be paramount,” added Mike Yarwood, TT Club’s Senior Loss Prevention Executive and Chairman of the Award Steering Committee.

Among the four regional winners is the final winner of the Young International Freight Forwarder of the Year Award (YIFFYA) 2019, which will be determined and announced during the FIATA World Congress in Cape Town from October 1-5.

This year’s prize will focus on academic training including one week at TT Club’s London, Hong Kong or New Jersey regional centres in addition to a week at the company’s head office in London. All four regional winners will receive a year-long subscription to the International Transport Journal (ITJ).

 

Velocity 2019 MercuryGate User Conference

Billed as “the premier industry event for transportation and logistics professionals,” the conference includes the world’s leading shippers, logistics providers, industry experts and, of course, MercuryGate software experts.

The three-day conference will feature keynote speakers Adrian Gonzalez, president of Adelante SCM, and American Blockchain Council’s co-founder and executive director, Jack Shaw. The conference will take place at the Cosmopolitan in Las Vegas with topics of discussion focusing on blockchain, parcel shipping, TMS best practices, high velocity multimodal frieght, and much more.

This year’s event will kick-off the morning of May 5 with a full day of activities including an exciting escape room experience at Escapology, a Pink Jeep tour, and a supercar driving experience at the Las Vegas Motor Speedway. The day will conclude with an official Welcome Reception at the Madame Tussauds of Las Vegas.

Don’t miss out on this informative, fun, and unforgettable conference May 5-7 and RSVP your spot today.