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“It’s What We Have Always Done”

product
Archives, Global Trade Daily, Special Reports

“It’s What We Have Always Done”

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One of the advantages of BoldtSmith Packaging coming into your facility is having a fresh set of eyes take a look at the current packaging process and designs. Specifically, eyes that have been in thousands of manufacturing facilities for products ranging from pancake mix to motorcycles.

No matter what the product is or what the packaging is, there are six words we commonly hear. “It’s what we have always done”. When we hear this, the majority of the time we are able to uncover substantial cost savings! A few of these potential packaging optimization opportunities are outlined below:

1. Packaging material, freight or labor savings

2. Product damage reduction

3. Packaging consolidation

4. Process changes

Packaging has a way of being “grandfathered” in at a lot of companies. For example, a company develops a packaging solution for a product where the forecasted annual quantities were 50,000 units per year and shipping palletized into Whole Foods. Since that product was introduced 5 years ago, it has now been picked up by Walmart, Amazon and Target. Annual quantities are now over 8 million!

The company has exhausted all potential opportunities to increase margins through optimizing its processes, materials, and waste related to manufacturing the product. However, the packaging that was used at Whole Foods when the annual quantities were 50,000 is in fact the same packaging being used today at 8 million units per year. How could that be? Because, “It’s what we have always done”.

When you read through that, what packaging came to your mind? Corrugated boxes? Clamshells? Bottles? Pallets? That’s great! Packaging means something different to every company. For one company, it might mean gusted pouches going into a master carton that is palletized and stretch wrapped with corner boards and slipsheets between each layer of cartons.

How many different packaging materials and processes were just listed in that example? Were those materials and processes selected based on data and testing with a goal of maximizing profit, reducing damage and increasing customer satisfaction?

Or are they being used because “It’s what we have always done”?

Reach out to BoldtSmith Packaging and we will come into your facilities to identify what opportunities exist. From there, we will design, test and implement optimized packaging concepts!

Check out this case study on how we saved a customer over $6,000,000 in packaging costs!

This post originally appeared here. Republished with permission.

freight
Archives, Global Logistics, Global Trade Daily, International Trade

EXCLUSIVE WHITE PAPER: International Freight and Trade Compliance Key Management Considerations for 2021

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Overview:

Manufacturers, Dealers and Distributors that are engaged in global trade… Importing, Exporting, Buying, Selling and distributing various products worldwide.

The ability to move goods in the international arena will make or break sales or even maintain a client relationship.

The ability to deliver products on a timely and loss-free basis is a critical component to the companies operating with a global footprint.

This “white paper” created for the readers of Global Trade Magazine addresses “Six Steps” to follow to help reduce risk and cost in the area of international shipping, freight and logistics.

Supply Chain Spend in 2021

We should all keep in mind that the Covid-19 Pandemic of 2020, brought significant increases in logistics costs and supply chain spend, along with limitations on service both domestically and internationally.

This is likely to continue heavily into the 2Q, second quarter of 2021 with a residual impact lasting till December 2021.

Those engaged in budgeting supply chain costs should plan for increases in excess of 25%, as much as 50% and continued delays to midyear 2021.

Demand, capacity, pandemic disruptions fears along with greed will continue to be driving factors.

Warehousing, distribution and all related costs have and will continue to escalate, with limitations on space and capacity.

The Six Steps

The following six steps originate from the authors 35 – year experience in moving freight all around the world and in assisting corporations with global logistics that are cost-effective and reduce risk to themselves and their clients’.

1. Chose the Best INCO Term

2. Insure the Shipment

3. Chose the Right Freight Forwarder and Carrier

4. Track all Shipments Proactively

5. Understand the Total “Landed Costs”

6. Be Trade Compliant!

Choose the Best INCO Term

The INCO Term, established by the International Commerce Commission is followed by all countries belonging to the United Nations for goods that pass through international borders.

INCO Terms typically get updated every ten years as was demonstrated this January 2020.

There are 11 Options in the 2020 Edition.

The seven Incoterms® 2020 rules for any mode(s) of transport are: 

EXW – Ex Works (insert place of delivery)

FCA  – Free Carrier (Insert named place of delivery)

CPT  – Carriage Paid to (insert place of destination)

CIP –  Carriage and Insurance Paid To (insert place of destination)

DAP – Delivered at Place (insert named place of destination)

DPU – Delivered at Place Unloaded (insert of place of destination)

DDP – Delivered Duty Paid (Insert place of destination).

Note: the DPU Incoterms replaces the old DAT, with additional requirement for the seller to unload the goods from the arriving means of transport.

The four Incoterms® 2020 rules for Sea and Inland Waterway Transport are: 

FAS – Free Alongside Ship (insert name of port of loading)

FOB – Free on Board (insert named port of loading)

CFR – Cost and Freight (insert named port of destination)

CIF –  Cost Insurance and Freight (insert named port of destination)

The INCO Term is a term of sale between a seller and a buyer that picks a point in time in the transaction where risk and cost is transferred from one party to the other.

It does not address other contractual concerns, such as payment method, title and details of marine insurance.

What it really does is advise an exporter till what time and place in a transaction is it responsible for cost and risk to …. And conversely where the importer picks up on.

Depending upon the INCO Term utilized … the risks and costs could be dramatically impactful for either the seller or the buyer.

We recommend that all operations, purchasing and sales personnel for the readers of Global Trade Magazie learn at a very detailed level all they can about INCO Terms and more specifically how to best leverage the term to reduce risk and cost in their transaction.

The author is available to the readers of Global Trade Magazine with any questions. (tomcook@bluetigerintl.com)

Insure the Shipment

The typical importer and exporter never worry about loss or damage until it occurs.

And at that point, everyone from the forwarder to the carrier is blamed for the occurrence.

Freight will always get lost or damaged at some point in time, when you ship frequently and all over the world.

It is very important to make sure that you first identify through the purchase or sales contract who has risk of loss or damage. What INCO Term is being utilized? How payment is being made?

Once the risk is understood … then marine cargo insurance should be acquired … on an “All Risk”, Warehouse to Warehouse” basis with a reputable international cargo insurance underwriting company.

Additionally, some loss control elements need to be considered to mirror the insurance policy that considers:

-That the freight is packed, marked and labeled well

-A responsible forwarder and carrier is utilized

-Freight needs to pass through the system quickly … delays at border pints open the door for loss and damage

-Freight needs to clear customs … thoroughly, legally, following all import regulations and timely … all that will mitigate the potential for loss and damage

Chose the Right Freight Forwarder and Carrier

As an extension of your shipping personnel the Forwarder and Carrier take responsibility to move your freight through the global system.

They need to do this:

-Timely

-Safely

-Cost-Effectively

Choosing the right company who is qualified, experts in pet products distribution becomes some very important criteria to make sure the shipment, the freight and the logistics moves your package to your customer’s satisfaction.

Blue Tiger International with over 35 years’ experience has developed some very key relationships with an array of freight forwarders and carriers and can assist you in making sure you have all the necessary information to make the best choices.

Other organizations like the NCBFAA, AFA and TIA … all freight trade associations can produce members who specialize in the Global Trade Magazine Industry Vertical.

Track all Shipments Proactively

Making sure the shipments arrive on time and in workable condition is the guarantee of customer satisfaction, long term relationships, less headaches and greater margins.

This can be a service your freight forwarder or carrier provides, but it needs to be clearly identified in that vein and it must be done proactively … through every step of an international shipment.

Depending upon distances involved, countries of export and import, choices of mode and carrier … some freight can travel 12,000 miles, through 4-5 carrier handoffs, via several customs authorities and in several modes of transit.

All these convolutions can create exposure to loss, damage or delay. All three concerns we want to avoid. They lead to loss of revenue, customer dissatisfaction and lots of stress within your organization.

To mitigate this concern you need to structure a proactive system to “track and trace” all your international shipments through all the convolutions, hand-offs and modes of transit.

Many “track and trace” systems can be electronic and advise you through web portals, emails and other electronic means on all your shipping activity.

The benefits of proactively in lieu of a “reactionary” mindset will pay off in spades over the course of time and client relationships.

Understand the Total “Landed Costs”

Landed Costs are the total of all the accumulated expenses attached to a shipment moving internationally.

Many of these costs are outlined as follows:

-International Freight

-Duties, Taxes and Fees

-License Charges

-Handling Charges

-Domestic Freight

-Clearance and Handling Charges

-ISF Fees

-Carrier Surcharges

-Demurrage

-Storage and Warehousing

Sometimes the landed costs can exceed the value of the actual shipment.

In order to protect margins and profits … it is critical to make sure “transactional” that you completely understand what the “landed costs” are for your shipment … then you can make sure these costs are covered in the eventual client invoicing that will follow.

Remember no one likes surprises … particularly those that have an additional price tag attached to them.

Be Trade Compliant!

It is imperative that both pet product importers and exporters operate their global supply chains trade compliantly.

This is following procedures and operational practice that accomplishes:

-Due diligence

-Reasonable Care

-Supervision and Control

-Engagement

This includes …

-Understanding the regulations

-Building internal SOP’s to comply with the regulations

-Train personnel on how to interpret and practice the SOP’s and in a regulatory manner

-Engaged in government programs that provide evidence of managing secure and compliant global supply chains, such as C-TPAT, Customs-Trade Partnership Against Terrorism

C-TPAT is a voluntary program of security created for importers into the United States managed by CBP, Customs Border and Protection … now open to include exporters from the USA.

Areas also included in trade compliance have to do with … documentation, classification (HTSUS/Schedule B Number(s), Valuation, Record Keeping, Export License Requirements, Denied Party Listing … to name a few of the operational concerns.

The penalties for non-compliance are fines, penalties and potential loss of import or export privileges. More serious areas can include criminal prosecutions.

Summary

Importing and exporting products successfully, means paying attention to detail. These six areas outlined above are a good foundation for creating a detailed and comprehensive approach to managing global supply chain responsibilities.

Our 35 years plus of global supply chain experience has demonstrated that those companies that are diligent about how they manage the freight, logistics and distribution of pet products will create the best opportunity to:

-Protect margins and grow profits

-Increase customer satisfaction

-Decrease stress and problem areas in global markets

-Better the reputation, which converts to client retention and expansion

______________________________________________________________

Thomas A. Cook is a 30 year seasoned veteran of global trade and Managing Director of Blue Tiger International, based in New York, LA and West Palm Beach, Florida.

The author of 19 books on international business, two best business sellers. Graduate of NYS Maritime Academy with an undergraduate and graduate degree in marine transportation and business management.

Tom has a worldwide presence through over 300 agents in every major city along with an array of transportation providers and solutions.

Tom works with a number of Associations providing “value add” to their membership services and enhancing their overall reach into global sourcing and in export sales management.

He can be reach at tomcook@bluetigerintl.com or 516-359-6232

cross-border
Archives, Global Logistics, Global Shippers 101, Global Trade Daily

Supporting Global Supply Chain Strategy with Cross-Border Shipping

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COVID-19 has shed light on the importance of shippers being prepared to work through unforeseen market conditions. This is especially true for cross-border shippers, whose businesses are reliant on multiple countries’ markets. To better prepare for these variations, businesses that rely on cross-border shipping should consider optimizing their supply chain strategies now by dedicating time to understand the cross-border options available to them. There are two primary choices: through-trailer and transloading.

What’s the difference?

Through-trailer shipping is the process of moving shipments in the origin trailer through border crossings. Whether exporting or importing, through-trailer shipments are handled on one side of the border with a carrier from the same country who has an interchange agreement. A different carrier from the other country handles the second part of the shipment.

To illustrate, a Mexico carrier with a trailer interchange agreement with a U.S. carrier picks up the freight. It’s taken to a secure yard where a border drayage driver transports the trailer across the border to the U.S. carrier’s yard for final delivery.

The shipment remains in the same trailer throughout the transport process, leading some shippers to believe the shipment seal is not broken. This is not necessarily true. U.S. and Mexico customs officials often break seals during border crossing inspections to verify product details.

Transloading is another option and is often considered more efficient. Transloading is the process of transferring shipments from one trailer to another at the border crossing. For example, a Mexico carrier picks up the freight and moves it to a secure yard at the border. A border drayage carrier moves the trailer across the border to a transloading facility. The facility then transfers the product to a U.S. carrier for final delivery.

The Benefits of Transloading

While both options have their pros and cons, transloading can offer some unique benefits that fall into three categories:

Additional Carrier Capacity: Transloading offers shippers additional carrier capacity because it enables them to access the full capacity of two independent carrier bases. Any U.S. carrier can pair with any Mexico carrier on a shipment, increasing available carrier options and granting additional flexibility. Through-trailer service only allows shippers to use carriers with an interchange agreement in place with a counterpart carrier on the other side of the border, limiting the capacity pool. With lessened demand not filling up truckloads, the ability to leverage the additional carrier capacity to identify which carriers’ trucks best match truckloads keeps products moving to meet consumer demand.

Lower Shipping Costs: Transloading grants access to additional capacity on both sides of the border, which means more, and potentially more efficient, carrier options. With transloading, shippers and logistics providers can identify carriers whose networks most closely align with theirs, resulting in more cost-effective rates. During a time when all departments are urged to cut costs where possible, the method with lower shipping costs benefits everyone involved.

Fewer Border Delays: The broad variety of carriers available to shippers makes it easier to source carriers on both sides of the border that best match the ideal pick-up and delivery time frames. Through-trailer shipments are dependent upon the limited capacity of the two carriers tied to an interchange agreement. In turn, this can lead to delays at borders and in overall shipments. Such delays are becoming more widespread because of the imbalance between northbound and southbound freight.

The Types of Freight to be Transloaded

Any specialized transloading facility located near a major border should have the ability to handle a variety of freight, although some types work better than others. Freight loaded on slip sheets or pallets typically fare best with transloading, especially consumer packaged goods, food and beverage, and raw materials. Transloading is also prevalent when shipping to warehouses with strict labeling and palletization requirements. Conversely, freight is better off using through-trailer shipping when it requires specialized loading, contains over-dimensional products, or includes flatbed shipments.

The needs of each shipper with a global supply chain strategy differ and come with unique challenges and requirements. It’s critical for each shipper to know their cross-border options and determine which will work best for their business. By being knowledgeable and prepared, shippers can more easily select which process to implement based on what is most important to their company at the time, whether that be price, shipping time, or carrier capacity.

__________________________________________________________________

Kyle Toombs is the VP and Head of Mexico and Canada at Coyote Logistics

dubai customs
Archives, Global Trade Daily, News

Dubai Customs Announces First-Ever 24/7 Integrated Control System for Trade Security

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Thanks to a unique blend of artificial intelligence, drones, a K9 unit, and a rapid intervention team, Dubai Customs has officially launched the first integrated control system in the world. This system has been termed as the “Siyaj (Fence) Initiative” and fully supports efforts against counterfeit trade shipments while progressing trade operations.

“We feel proud today that our borders are more secure and our trade is streamlined following the wise vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai,” said HE Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation.

“This initiative is an embodiment of the team spirit and the honest efforts that everyone at Dubai Customs always strives to maintain. We hope this initiative adds up to our cumulative work in the field to maintain the leading position the UAE enjoys worldwide.”

The Siyaj initiative relies on regularly updated data to effectively deliver the level of security it was designed for. Among the features found within the Siyaj system include a vessel that tracks and controls ships prior to their arrival at the port,  inspection systems, and a set of cameras and devices for surveillance.

These features work in tandem with the rapid intervention teams for a faster, more reliable action turnaround time. The continued efforts further reiterate the success of Dubai Customs in halting counterfeit items and protecting the security of trade operations.

“Dubai Customs plays a vital role in thwarting smuggling of drugs and other illegitimate goods. In this regard, we cooperate and coordinate with the relevant authorities worldwide to intercept any suspicious or hazardous shipments before they enter the country.,” Director General of Dubai Customs, Ahmed Mahboob Musabih said.

“Customs authorities in the UAE made 4,450 customs seizures in 2019, and this initiative will cement the security efforts following the vision of Dubai Customs of becoming the leading customs organization worldwide supporting legitimate trade. We highly commend the efforts behind this leading initiative which will not only enhance the security of our borders but will also facilitate trade and supply chains.”

global
Archives, Global Trade Daily, News

These Global Traders are Keeping Things Moving

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Richard Jung has joined NFI as vice president of Sales. He brings the Camden, New Jersey-based supply chain solutions provider more than 30 years of international transportation experience at such concerns as Mitsui OSK Line, Maersk Lines, Crane Worldwide and Evergreen Line.

Dachser is used to moving things around, something that now extends to the Kempten, Germany-based global logistics provider’s top offices. CEO Bernhard Simon will step down in 2021 to head the family-owned company’s Supervisory Board. Burkhard Eling is slated to take Simon’s place as CEO on Jan. 1, 2021. Robert Erni, who will succeed Eling as CFO, begins his onboarding phase at Dachser on Sept. 1 as a deputy director.

Jessica Tyler has been named president of Cargo and vice president of Airport Excellence with American Airlines. She now leads the Fort Worth, Texas-based carrier’s teams responsible for the success of the cargo business and delivering operational and customer service excellence for both airports and cargo.

Gonzalo Hernandez has moved to Seoul, South Korea, to become Delta Cargo’s general manager of Cargo Sales-Asia Pacific. Jonathan Corbi has replaced Hernandez as interim general manager for the Europe, Middle East, Africa and India region. Eric Anderson, who’d had the position in Seoul, returned to Delta’s Atlanta base to become director of Cargo Strategy, Alliances and Technology.

Jess Herrera, the longest serving commissioner at Port Hueneme (California), was recently received the 2020 Latino Leadership Award from the Pacific Coast Business Times, which also named the California port’s CEO and Port Director Kristin Decas as a Top Woman in Business.

Steven Polmans, director of Cargo & Logistics at Brussels Airport Co., has decided to make a career shift by the end of 2020. Over the next months, he will continue leading the European airport’s cargo business and retain his leadership functions at Air Cargo Belgium and The International Air Cargo Association.

Matthew R. Nicely has joined Akin Gump as a partner in its international trade practice in Washington, D.C. Nicely, who arrives from Hughes Hubbard & Reed, maintains a market access-focused practice centered on trade remedies and customs work as well as on disputes before the World Trade Organization (WTO).

Scott Lincicome has joined the Cato Institute full-time as a senior fellow in economic studies, with a focus on international and domestic economic and trade policy. He began at the Washington, D.C.-based think tank in 1998 as a trade policy research assistant and previously worked as an international trade attorney with extensive experience in trade litigation before national agencies and courts, the European Commission and the WTO’s Dispute Settlement Body.

international shipping
Archives, Global Shippers 101, Global Trade Daily

How to Save Time and Money With Your International Shipping

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

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

1. Balance your need for speed.

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

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

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

2. Optimize your packaging.

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

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

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

3. Invest in cargo insurance.

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

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

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

4. Get help when you need it.

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

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

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

Final Thoughts

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

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

_________________________________________________________________

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

vendor
Archives, Global Shippers 101, Global Trade Daily

Reduce Risk in Your Global Shipping Strategy With Vendor Management

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Trying to coordinate deliveries to make sure they arrive on time can be a stressful job in today’s volatile shipping landscape.

You need to contend with unexpected shipping cancelations by carriers that are trying to stay profitable. Unpredictable rates caused by too many or too few vessels available at any given time adds to the uncertainty. And if you don’t have complete visibility across your global supply chain, your job is only harder.

Many shippers have found peace of mind by using a global vendor-management program, which combines PO management, global visibility, and shipping consolidation. The program can help you make sure freight arrives on time. And it can help you bring greater savings, consistency, and security to your shipping strategy.

How the Program Works

With a vendor-management program, a logistics provider helps manage both your POs and your global flow of cargo, while serving as a single point of contact between you and carriers.

As POs come in, the provider can calculate when cargo will be picked up and continue to verify that timing as delivery dates near. The provider can also use consolidated shipping to combine your partial shipments with others to create full shipments. This can help you get shipments to their destinations on time, and do so cheaply and efficiently.

With a vendor-management program, you no longer need to arrange multiple order pickups or worry about orders not being ready for pickup.

Instead, you can use the provider’s transportation management system to monitor your current order and shipment statuses in real-time, and see exceptions down to the item level. And if you encounter increased demand or last-minute supply chain outages, you can use the system to reroute freight.

3 Key Benefits to Your Business

A vendor-management program offers you more than the comfort of knowing that your shipments are in good hands. It can also improve your global shipping strategy to help you realize some key benefits.

Lower Costs: There are clear cost benefits of using consolidated shipping. You only pay for the volume of a container that you use rather than paying for a full container that you may not fill. Combining multiple shipments into one can also reduce your customs entries and terminal charges, deliveries, and handling fees.

And the savings only start there. Because you can reduce your supply chain spend even more when you combine a vendor-management program with a provider’s transportation, logistics, warehousing or customs services.

Better Consistency: Global supply chains have more opportunities for service failures. A single point of contact can give you answers and offer alternatives before service failures happen. Customs entries can also be processed more consistently. And fixed weekly schedules that have known transit expectations can make it easier to track your orders.

Greater Security: Less-than-truckload and less-than-container-load freight faces the risk of theft and needs to be secured.

With a vendor-management program, a provider can accept your containers for unloading, consolidation, and reloading. And they can pick up containers at ports and bring them to their facilities for faster, more secure customs clearance. Providers can also run CCTV and seal containers to reduce theft risks.

Choosing a Provider

Make sure the logistics provider you work with can not only understand your unique needs but also turn them into solutions.

For example, shippers have different levels of risk exposure. Limitations of liability, terms, and conditions, and cargo insurance options vary by mode of transport, service type and country.A logistics provider can help you uncover potential liabilities in your supply chain and prepare to manage costs associated with cargo damage or loss. This is why it’s important that you use a provider that has in-house risk-management professionals.

The right provider can also help you manage your regulatory challenges and combine vendor management with your other logistics needs for greater efficiency. Additionally, with businesses, suppliers, and the solutions provider integrated onto the same technology platform, you can gain clear visibility to overall inventory, maintain lower transportation costs, and help ensure on-time deliveries.

Countries require compliance with their own specific set of customs rules, governmental regulations, VAT, duty rate calculations and payment schemes. Even small errors like misspelling on a declaration can lead to fines, penalties or even cargo seizures. For this reason, it’s critical that the logistics provider you choose has regulatory experience in the markets where you do business.

Tailored to Your Needs

Vendor-management programs can be structured in different ways based on what you want to achieve. You could customize it to deliver freight from multiple global suppliers to multiple customers. You could also source all freight for a single company. Or you could use a highly efficient merge-in-transit approach to ship products directly from vendors to customers.

Whatever approach you choose, the end result is the same: Efficient and cost-effective control of your global freight so it arrives on time, wherever you do business.

Customs
Archives, Global Trade Daily, Imports/Exports

Common U.S. Customs Clearance Issues & Overcoming Them

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For people who are not intimately familiar with the international freight industry, it can appear to be dauntingly complex. After all, dabbling in international trade means dealing with a host of different entities, each of which has its own regulations and rules that you have to follow. And US customs are just one large piece in an ever-increasing puzzle.

However, understanding common US customs clearance issues and anticipating them is crucial for a successful global trading endeavor. That’s why we’re going to delve into some of them, and propose ways to of solving them.

Customs Exams

If you want to deal with common US customs clearance issues, be prepared for customs exams. Naturally, you probably know that random checks at customs aren’t that rare of an event in the world of maritime shipping. And sure, only up to 10% of global shipments are inspected in reality. While that may be a small fraction of the overall volume of shipping; you need to be prepared. And that goes for any customs in the world, including the US.

Issues with US Customs Clearance

The first thing you need to understand regarding US customs clearance issues is – they are different in each country and port. So, some things you read about the priorities of Dutch customs won’t necessarily be true when the US is concerned. Generally, U.S. customs tend to have frequent random inspections.

Know that there are separate, country-specific inspections that they conduct, depending on what country your shipment is coming from. That’s the sort of information that importers regularly provide to freight forwarders. So, that sort of logistical information is important, as any misleading information can lead to long-term distrust; not a good thing for trading efforts. If complete information flows both ways, your freight transport will be a smooth process. And in the case of the contrary, you’ll be dealing with another issue: delays.

Delay Expenses

One of the most common US customs clearance issues is delays. And these happen precisely because of different exams and holds. These, in turn, lead to fees and charges that are a consequence of delays. Which can happen for an entire slate of different reasons. However, not all delay charges are the same. Generally, they are divided into per diem, detention, and demurrage. So, make sure you familiarize yourself with the terms, before negotiating with a shipping company.

Missing Documentation

When it comes to your shipping process, know that the original copy of your Bill of Lading is the most crucial document. And its misplacement is a surprisingly common problem that happens to shippers. If the Bill of Lading is missing, be sure that you will face issues regarding your shipment’s release. And that will result in additional delays. That’s why you need to be sure that the Bill of Lading will be carried through a channel you can rely on. That’s where the aforementioned trustworthiness comes into play.

If you’ve got a supplier with whom you have a fairly trusting relationship, you can opt for an Express Release or a Telex Release. Though, you may require more particular paperwork, depending on the type of cargo and the port of destination. Uncertainty and trade volatility is something that all shippers face; being familiar with all the details will go a long way towards reducing them to the minimum.

Missing Taxes and Duties

As we’ve mentioned just now, you may need some specific sort of paperwork, depending on where the shipment is going and the sort of cargo you’re shipping. And not abiding by this is one of the common US customs clearance issues, but you want to avoid that. After all, this additional paperwork is there to protect the interests of the country’s residents and the economy. Thus, some commodities may be forbidden, while others are allowed, but only with special permits.

To give an example – auto-shipments are among those which require specific documentation. Before the shipping is done, have a look at the HS Code of the cargo that you’re transporting. You may encounter extra taxes and duties in order to clear your shipment. So, if you want your shipment to go through smoothly, be certain that you have all of the particular documentation that all the different ports require.

Cargo Damage

Unfortunately, cargo damage is something that happens often in the world of shipping. That’s why you want to make sure your cargo is safely secured in its container at the port of origin. Statistics show that 90% of cargo damage actually happens due to improper storage and packing. Plus, bear in mind that the loading process in your origin point should be perfect. Take care of all the details, like remembering how many pallets you can actually fit into the container.

Because in reality, cargo damage rarely happens due to terminal or carrier mishandling. But if that does happen, do not forgo filing an insurance claim. And while doing that, take great care to go through all the proper procedures step by step, if you want to be certain that you will be compensated for the losses. Still, though; we recommend safely securing your cargo, and you won’t have to go through any of this.

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Nathan Smith is a freelance author, mostly writing analyses of the maritime and air shipping industries. When he’s not writing about moving companies like Four Winds Saudi Arabia, he likes reading crime fiction and watching science fiction movies.

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Archives, Global Trade Daily, News

Duie Pyle Partners with Oak Harbor Freight Lines to Expand Service to West Coast

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West Chester, Pennsylvania-based A. Duie Pyle, a premier provider of asset and non-asset based transportation and supply chain solutions in the Northeast, recently partnered with Oak Harbor Freight Lines to expand its coverage area to the West Coast for the first time.

Founded in 1916, Oak Harbor has a footprint covering Washington, Oregon, Idaho, California and Nevada and just celebrated its 103rd year anniversary, while Pyle just celebrated its 95th anniversary. This is Pyle’s first foray into providing West Coast service and will improve transit times while reducing dock congestion and cost impacts upon customers, as the partnership opens up new opportunities to reduce service providers. Both companies share similar core values and are family-owned and operated, making the move an ideal match for providing coast-to-coast service.

“Being able to work with another family-owned and operated company who shares similar core values and service standards is something that is important to all of us at Pyle,” said John Luciani, COO of LTL Solutions at A. Duie Pyle. “With our similar business model and combined strength in the market, we are confident adding Oak Harbor Freight Lines to our elite partnership network is going to prove valuable for customers across the U.S.”

“At Oak Harbor Freight, we strive to invest in valued relationships that will continue to meet our customers’ needs,” says David Vander Pol, co-president and co-owner of Oak Harbor Freight. “This partnership with A. Duie Pyle reflects our company goals by gaining strategic partnerships that will allow our customer base to have a simple and uniform source for their transportation needs. We are excited to expand our services coast-to-coast and provide the best customer service possible.”

Archives, Global Trade Daily, Trucking

DRIVER SHORTAGE & TRUCKING-CAPACITY: WHY THEY’RE NOT GOING AWAY

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In the busy and demanding world of trucking, industry players are inevitably reminded of two significant challenges that show no signs of lessening now and in the near future: trucking capacity and the driver shortage. Neither issue will solve itself with current approaches. Companies are now faced with the reality that change must be embraced through improving training standards and the utilization of advanced technology solutions. 

This might not come as a surprise to some, but for others still operating with outdated practices, reality presents its own set of challenges. To look at the numbers the industry is dealing with, a report released by Insurance Journal confirmed the driver shortage figure has reached 51,000–up from 36,000 in 2016.

Some industry leaders, such as Advanced Training Systems CEO John Kearney, are confronting these issues at every angle–from a legislative, cultural, educational, and technological positions. 

“The issue is that the existing workforce is aging,” Kearney maintains. “The truck is a different piece of equipment from what it was a few years ago–it’s very sophisticated. The technology advances are significant and the regulations are outdated. Simulators are really emerging as a major change to the training field. A lot of companies are now going to simulators because there are some things they can do that are not possible to train any other way.”

Advanced Training Systems (ATS) has spent more than a decade developing cost-effective training simulators and preparing aspiring truck drivers across the United States through many of the training schools in the country. These driver training schools offer students unmatched training experiences that have propelled ATS in a leading position in the driver training field. 

“In 2008 we started the process of developing simulators because we know they are an excellent part of the training process,” Kearney says. “Today, we have simulators in a number of places around the U.S. and Mexico with operations in California where we do manufacturing and technology development while our corporate offices are in Florida.”

Among the scenarios truckers are faced with at a moment’s notice that traditional training methods can’t address include sudden road obstructions, aggressive drivers, inclement weather and truck malfunctions. These unavoidable situations present some of the most challenges in preparing the next generation of truck drivers. 

“Let’s take the example of a front tire blowout,” Kearney suggests. “If someone does that in a real truck, they could kill someone. There’s also the risk of something coming out on the road all of sudden and if the driver swerves, they could create an accident. These types of scenarios can be taught in a simulator.” 

He continues, “Ice is another example. If a driver is sliding on ice, what do they do? They don’t want to slide in a real truck, so what we do is have simulators that train properly so drivers know how to react if that happens. The reaction time is improved through the process of repetitive proper actions needed to teach muscle memory in the training process.”

Earlier this year, 28 vehicles were involved in a devastating truck collision in Lakewood, Colorado, that claimed the lives of four people. Since then, conversations surrounding improved training methods have taken priority among industry players, with simulators leading the position of potential solutions. 

“Technology is a big part of the answer,” Kearney maintains. “If we use technology, we use better methods of training and we’re not sending someone to sit in a classroom for too long. Change in technology expands on the number of people who can become interested in the field. The methodology of training using simulation and various other training methods available today—such as virtual reality—will provide the industry with better drivers and more people interested in a career in the field.”

Beyond technology, Kearney urges legislators to consider how current age restrictions limit the industry’s growth. Current laws only permit young adults over the age of 21 to drive a truck over state lines, limiting both driver populations and proactive education efforts. The desire to learn is there, but current laws restrict motivated and qualified students to begin training, leaving high schools with little reason to further pursue efforts in education. 

“High schools are not teaching students to drive in a truck. What’s beginning to happen is we are realizing young people are very qualified, they’re very used to working with things like simulation, and we need to allow the young driver to enter into the profession from the time they leave high school, between ages 18-21 once properly trained.”

The trucking industry is sometimes generalized as an exhaustive, demanding and less-than-glamorous profession. It’s time for a refresh of trucking culture to mirror what a career in the industry really looks like, beyond long hours and demanding schedules, according to Kearney. 

“The other part of the issue is we must educate young people to think about truck drivers differently. A truck driver today has much more involvement than just being a truck driver. The industry needs to change the name of what truck drivers are to something that better indicates what they do and what they are. The current trucking condo is actually a very nice place to live and travel around the country.”

The first step in creating reliable and effective solutions for the trucking industry begins with expanded training for existing and future drivers and elevation to a professional level. The technology available in today’s markets enable companies across the nation to improve operations and prepare the next generation of drivers for fulfilling careers. The reality is, trucking is not what it used to be both operationally and professionally. 

“The driver of today has become a manager of multimillion dollars’ worth of freight, managing the technology with careful compliance to the delivery schedule, serious regulations and changes in the method of operating a $100,000-plus vehicle and the method of driving as it develops. The driver of today can move up in the company they work for. Many drivers will be moving up in the industry from driving a truck.”

Opportunities now exist that weren’t fathomable in previous decades. The challenge now is to overcome antiquated mindsets and operation patterns to boost productivity, driver satisfaction and safety. It’s up to industry leaders to step up and initiate change.