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SMITH EAGLE LOGISTICS IS NOW SEL SUPPLY-CHAIN SOLUTIONS

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3pls, Archives, Global Logistics, Global Trade Daily, Uncategorized

SMITH EAGLE LOGISTICS IS NOW SEL SUPPLY-CHAIN SOLUTIONS

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Fort Worth-based Smith Eagle Logistics has announced today its transition to SEL Supply-Chain Solutions (SELSCS), which will provide third-party logistics (3PL) services across the United States and Mexico.

SELSCS has more than 25 years’ experience in transportation and logistics. The new business will serve an expanded national and international area as well implement an entrepreneurial program for independent agents.

On the reports that was gathered at the scene. Dennis Martin, CEO of SELSCS said “Our core value is to surpass expectations in logistics by serving entrepreneurs in logistics. Rebranding to a true logistics company reflects who we are and what we do by expanding our services nationally and internationally and focusing on our entrepreneur’s success.”

The rebrand will assist SELSCS in building relationships with new partners and further diversifying services. Operating an agent model, SELSCS believes that independent freight agents are not ‘brokers’ but rather entrepreneurs. SELSCS bridges the gap to empower the independent agent to succeed in the 3PL space by offering operational support, a variety of human resources and financial support.

Martin concluded “The opportunities for the individual entrepreneur in the transportation and logistics industry are limitless. It takes a little guts and a little courage but, for those willing to step out and give it a chance the opportunity is there and we’re willing to invest in your business to see it grow to its full potential – after all, SEL stands for Supporting Entrepreneurs in Logistics.”

“Based on current revenues, SELSCS has grown to a Top 100 logistics company over the past three years. While some of our competitors might be growing even faster, we are proud to say we have not received any private equity money to fund our explosive growth.”

SEL (Serving Entrepreneurs in Logistics) Supply-Chain Solutions based in Fort Worth, Texas, is a top 100 logistics company offering over the road transportation solutions in the U.S., Canada and Mexico. SELSCS operates its business through a network of independent business owners and provides the back-office functions to Service Entrepreneurs in Logistics. Combined its entrepreneurs have hundreds of years of experience in the Transportation and Logistics space. It’s main modes of transportation include Truckload, Refrigerated, Flatbed, Over-sized, Drayage, and Intermodal service.

Find SELSCS online at www.selscs.com

 

3pls, Archives, Global Logistics, Global Trade Daily

AFS Logistics Acquires DTA Services Ltd., Canada’s Second-Largest Freight Bill Audit, Cost allocation and Analytics Firm, Creating New Largest Freight Audit and Payment Company in Canada

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3PL dramatically improves Canadian presence with addition of 102-year-old freight audit and payment company

AFS Logistics (afs.net) has announced the acquisition of DTA Services, Ltd. (dta.ca), a leading Canadian freight bill audit, cost allocation and analytics firm located in Toronto. DTA will continue serving clients under its established brand as an AFS operating company and will maintain its current team, service offering and location. The acquisition combines the strong platform and team at DTA with the resources and experience of AFS to fuel further growth in Canada.

On the report gathered at the scene, Tom Nightingale, CEO, AFS said “DTA is a strong cultural fit for AFS, with an intense passion for helping clients exhibited by a 102-year history of success and a loyal customer base. With our combined presence and product offering, we have an incomparable opportunity to create value for our customers on both sides of the border.”

As part of AFS, DTA will serve the Canadian market with an expanded portfolio of logistics services, adding less-than-truckload (LTL), parcel cost management, transportation management and a broader suite of audit services. In addition to new services, DTA’s core freight audit and payment offering will be enhanced by visibility into the $10 billion in annual freight spend managed by AFS.

On the acquisition of the canada’s second largest freight bill audit, Melissa Gracey, President and CEO, DTA had this to say “It’s incredibly exhilarating to hand the reigns of this mature industry leader and exceptionally skilled team over to such a competent, strategic buyer who shares our values and passion for our staff and clients. Joining AFS is the right next step, allowing us to build on existing strengths and pursue new opportunities to serve the industry, while remaining laser-focused on doing what’s best for our clients for the next 102 years.”

The current DTA office in Toronto will become AFS’s newest location, complementing the company’s seven other offices throughout the United States. Ensuring the same level of excellent service for DTA customers, operational and customer service contacts will remain in place, and sales will continue to engage the Canadian market.

Scott Matthews, President, operating companies, AFS concluded “This acquisition broadens and deepens our value proposition to clients in the U.S. and Canada through the trusted relationships DTA has built over decades,”

 

Archives, Global Logistics, Global Trade Daily, News

The container logistics implications of war in Ukraine

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The container logistics implications of war in Ukraine

The spoils of the recent war in Ukraine has largely weighed down on the global container logistics and its threatening to slap even further as the day goes by. As major container logistics companies have cried out.

According to a recent MEDIA STATEMENT on behalf of Christian Roeloffs, co-founder and CEO, Container xChange reads “I would like to express my horror at the events of the last week and my deepest sympathy for all the Ukrainian families who through no fault of their own have been dragged into this conflict following Russia’s invasion of its neighbour.
“This is a tragedy for Europe and has shocked us all at Container xChange. Our thoughts are with our friends in Ukraine. We can only hope that peace returns to this great country soon”.

This is how severe the condition is. From what Roeloffs reported, it was gathered that Parts of the Black Sea and Sea of Azov are now dangerous or unpassable. There have been missile attacks on vessels and ship arrests and lane closures for commercial shipping. The Ukrainian seaports of Odessa and Mariupol are closed/damaged/under attack. Trade and container movements have ceased. Cargo and equipment are stuck at ports.

Due to ongoing disruption to shipping in the Black Sea, container build-ups are expected at ports to exacerbate at storage areas across the region. Maersk has pulled out booking shipments to and from any Russian ports (with exception of foodstuffs, medical and humanitarian supplies) and other carriers have started following.

Russian and Belarussian ports in the Baltic and Black Sea will likely see a build-up of boxes if carriers refuse to make port calls due to the security situation and sanctions. The full implications of sanctions are not yet clear but the closure of the SWIFT system to Russia will make payments from Russian partners more difficult. The Rouble has also been in freefall after Russia’s central bank was cut off from its reserves.

Roeloffs concluded “Maritime trade with Russia and Russian businesses could be very difficult in the months and even years to come. On Monday, the UK banned all Russian ships from entering its ports. There has been at least one ship arrest by the EU. Our legal team is monitoring the situation.

On the Asia-Europe trade we could see more demand for maritime shipments and equipment out of Asia due to modal shift. For example, the Asia-Europe rail and road routes through Russia and
Belarus are reportedly closed and/or being used by militaries. Borders with the EU are closed.

The closure of air space across Russia and Europe has also reduced air freight capacity. We expect this awful war to add to the stretched nature of global container supply chains, bringing yet more inflation, disruption and delays.

Overall, the situation for container availability is likely to worsen, but this will vary by port and region. Central and Northern Europe is already congested, and any further trigger to the cargo flow will only worsen the state of container pileups.

We will continue to monitor the situation and what this means for global equipment networks and box availability. We will continue to support our customers in uncertain times with data and technology for better container operations, enhancing productivity and informed decision making.

Once more, we send our deepest sympathies and support to the people of Ukraine at this terrible time for them all”.

About Container xChange:   
Container xChange is one of the world’s leading container leasing and trading marketplace. More than  800 companies such as Kuehne+Nagel, Seaco, Sarjak use xChange to gain market
transparency, avoid demurrage & detention charges and increase operational flexibility.

Covering the entire transaction process from finding new partners to tracking containers and managing payments, xChange makes using 3rd party equipment and now container trading as easy as booking a hotel. Founded by Dr. Johannes Schlingmeier and
Christian Roeloffs in 2017 and headquartered in Hamburg, Germany, the company has more than 200 employees.

Archives, commentary, Global Trade Daily

A Comprehensive Guide to Picking a Third-Party Logistics (3PL) Partner for Your Business

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The right third-party logistics partner can help your organization improve customer service, control costs, and increase efficiency. It’s important to properly vet possible logistics partners to ensure your brand and services are well represented and the partner can deliver according to your needs.

Below are some of the things you consider in choosing a right third-party logistics partner: 

Establish Communication

Logistics have gotten more sophisticated in recent years. This logistics partners need to maintain high levels of communication and data sharing between the provider and the company. It’s important to find a third-party logistics provider that you can trust and one that shares your brand’s culture and values.

Do Your Due Diligence

They did not create all logistics providers equal. If you’re selecting a new provider or changing to a different provider, it’s important to look for logistics partners with the resources and capabilities you need to reach your business goals. Providers should also be able to integrate to your existing systems, or be willing to work with you to find an agreeable solution.

Ideally, look for outstanding service across financial history, brand stability, experience working in your industry, experience in specific geographic regions, owned vs. rented assets, and compliance with regulations.

Along with talking to the providers themselves, do outside research and read reviews from other companies that worked with them. If possible, ask the provider to connect you with satisfied customers. If they stand behind their service, they will be happy to showcase happy customers.

Look for Diverse Offerings

Logistics providers typically specialize in a few domains, including commodity services, industry services, and logistics services. Their offerings can range from sourcing, shipping, transporting, and customs management. Also multi-function supply chain management and oversight for specific industries or specialization in particular sections of the supply chain.

Service add-ons are valuable to both parties. A single provider can supply several services to make your supply chain scalable and seamless. You can look for value-added amenities like IT asset management, quality control, and high-tech logistics solutions. Some common service add-ons may include rush order or emergency order handling, product kitting, reverse logistics programs, and returned material authorization agreements.

Choose Partners with Advanced Technology

A third-party logistics provider’s IT infrastructure is vital to your needs and their own. Your possible provider should own and operate the contemporary technology needed for their side of the partnership, including warehouse management systems, fleet tracking systems, and inventory analytics and controls. You could also look for order fulfillment systems, freight theft or damage management, and wares tracking using RFID or EDI.

The logistics industry is undergoing rapid change. It’s important to find providers with advanced technology solutions to address your needs as the business evolves.

Look for Customization

Depending on your industry, you may need more customization options for your business. An experienced third-party logistics provider can help you optimize inventory and deliver excellent service for your customers. Building to order, rather than relying on stock, allows you to reduce inventory and production costs.

Opt for Omnichannel Expertise

Omnichannel is essential in the modern business world and necessary for enhanced customer experience. Your third-party logistics provider should understand the ins and outs of omnichannel commerce and how to provide that exceptional experience for customers.

Look for partners with repeatable business models, proven performance with previous customers, and experience with your business type, industry, or customer base. Depending on your needs, you may want to opt for a dedicated provider that focuses on one part of the supply chain or specific product types.

Work with a Network of Locations

Effective logistics partners have strategic network configuration with optimized distribution centers. It’s vital to understand the third-party logistics provider’s warehousing asset ecosystem, such as rented or proprietary storage facilities. If your products will need many storage stops on domestic or international routes, you will need a provider that owns and manages these warehouses for quality control and security.

You should also investigate more details about the warehousing assets, including the facility sizes and capacities, scalability, and future expansion plans. Are the warehouses close to ports, airports, highways, and railways? How many trailers and containers do they typically handle in a day? Is there anything you need to be aware of about service during the busy seasons or in the event of high shipping demands?

Focus on Excellence in Service

An experienced logistics partner will dedicate to service excellence and quality management. Your third-party logistics partner will have a significant impact on how your own business and customer service functions, so you want to be sure you’re choosing a provider that’s committed to delivering for you and improving their own product.

A provider with a dedication to service excellence will continue to optimize their own processes and will look for opportunities to install better solutions whenever possible. They should be invested in their service and its success, like you are to your own company and product, and always looking to excel.

Find Brand Alignment

Your logistics partner reflects on your brand and impacts your business. To ensure you represent your brand and your vision, you need to look for a provider with a long history of success, adherence to compliance and regulations, financial stability, and a continued interest in investing in the company, facilities, equipment, systems, and resources for optimal logistics.

With the right partner on your site, you can grow into a solid relationship with a third-party logistics provider that can grow and evolve with your business. While switching to different providers occurs as business needs change, it’s much simpler to find the right provider at the start and work on developing a long-term partnership.

Key Takeaways

The supply-chain management industry has undergone radical changes in the last decade. Many third-party logistics providers emerged on the market in response to this boom and the increasing opportunities with a global marketplace. Not every provider has the tools, resources, and expertise to deliver for you, but, so do your due diligence and find a provider with a positive reputation, proven processes, and a willingness to adapt and grow.

Ukraine
Archives, Global Trade Daily, International Trade

Five ways the war in Ukraine will change the world’s economy

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The war in Ukraine is a tragedy that will continue to play out for months, with an uncertain ending as far as the sad cost in human life, new alignments in global geopolitics and the stunning damage that will be done to the economies in countries beyond just Russia and Ukraine. Even though the repercussions of this war will reverberate for decades, we can already identify some trends that will impact the global economy in the future.  As with any volatile trade and economic situation, there will be clear losers (the Russian economy), but there will also be potent secondary developments that arise as a result of this aggressive invasion of a democratic, Western-oriented Ukraine.


 

Energy Security / Renewable Energy

The U.S. and EU have spent decades wringing their hands over the Transatlantic joint dependence on oil and gas from ‘bad actors’, including Russia, Saudi Arabia, and Venezuela.  In the last few weeks, attempts to punish Russia economically have been hamstrung due to the fact that much of Europe still receives about half of its gas from Russia, an impossible dependency when it comes to confronting Russia for its illegal actions in Ukraine. While the ‘fracking revolution’ has assisted the U.S. to a certain level of energy independence, a sizeable portion of the nation’s oil still comes from unreliable external sources. The irony of Russia’s attack on a democratic Ukraine is that it might finally push the U.S. and EU to commit to a substantive, immediate and dedicated pursuit of renewable energy sources for which environmental activists and innovative business leaders have been lobbying for decades.  Renewable energy’s strongest proponent just became the national security crowd.

Defense Spending – Globally

The same national security concerns will also lead to a huge rise in defense spending from EU and other nations.  Germany’s proposed budget increase alone will be a critical shot in the arm for the European defense industry, but we can assume that other nations that have put off investments in this area were shaken by Russia’s willingness to break global norms and attack Ukraine and will respond with substantial budget increases.  Images of Turkish Bayraktar drones destroying Russian armor and video of the U.S.-made Javelin helping to stymie the 7th largest army in the world are going to change how smaller nations structure their arms inventory.  More importantly, Russia’s actions have disabused any remaining doubters of the notion that a country like Russia will ‘play by the rules’ of international law in the modern era.  If Russia can so brazenly violate their international agreements and obligations, then so can China – and that realization will have a substantive domino effect on the planning and defense expenditures of everyone from Finland to the Philippines.

Wheat and Foodstuffs – Even Greater Price Inflation

Russia and Ukraine accounted for 30% of the global wheat trade prior to this conflict. But that is not the only food product that will be taken off of the market as a result of the war – sunflower oil, corn and other key products will either be destroyed (or unplanted) as a result of the fighting or will be locked inside Russia’s domestic market due to sanctions and the inevitable tariffs.  The rest of the world will see massive price increases and shortages in certain foodstuffs.  Combined with the global surge in inflation and increasing transportation costs, many global food-producing companies will struggle to provide products that are affordable for their usual clients.  If there is a silver lining to this cloud, it is that locally-sourced products and wheat-alternatives (rice, corn, bulgur) should see a boom in demand.

Cybersecurity and Information Warfare

Russia and China have been fighting a shadow war with the U.S. and EU in the cyber realm for years, but this conflict has pushed that fight into the light of day.  U.S. and European struggles with Russian governmental and pseudo-governmental cyber strikes (from denial of service attacks to outright hacks for information and funds, as well as documented attempts to impact elections in both regions) should have the same impact on corporate and governmental cybersecurity spending as watching Russian tanks roll into Ukraine did for defense spending.  No one wants to be the easy target in this war and corporations that took some risk and saved money on cybersecurity will be scampering to close those gaps as quickly as they can.  Russian desperation to get at global fund sources in the next few months dramatically increases the risk of pseudo-governmental ransomware attacks, and the information warfare we are seeing between Russia/China and the rest of the world is astoundingly blunt (and for Ukraine, remarkably effective in generating global support).  The gloves are off.  Is your company ready to defend its business interests from cyber and information / reputational attacks?

A More Unified, Emboldened EU

The last month has been a litmus test for EU leadership, and they have come out looking much more poised and united than anyone would have believed.  Should they have taken this threat more seriously in the last decade?  Absolutely.  Have they tolerated Putin-loving populists in the EU club for years (Orban, Zeman, Le Pen, Salvini)?  Sadly, yes.  But all of that changed when Russia headed for Kyiv.  Member state leaders closed ranks and the EU turned from a reluctant bystander into ardent supporters of Ukrainian defense efforts in a few short weeks.  From an economic perspective, this more unified and confident EU will disrupt a number of patterns.  They’re likely going to be much more aggressive in nurturing and protecting their internal innovation in technology and defense.  They will redouble efforts to reduce their dependency on external energy sources (to the benefit of renewable technologies, electric vehicle innovations, the nuclear industry and even public transportation ventures).  Most importantly, they can be expected to be stronger proponents of democratic ideals in their foreign political and business affairs.  Countries (and companies) that interact with this new EU will likely find that they are much more insistent on ESG concerns and support for human rights, democratic principles and adherence to the rule of law.

________________________________________________________________

Kirk Samson is a Director at the International Trade Association of Greater Chicago.  He is a former U.S. diplomat and spent ten years as an international law advisor for the Department of Defense.

emissions
Archives, Global Logistics, Global Trade Daily, Special Reports, Trucking

Reducing emissions requires efficient supply chain solutions

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In November 2021, the United States Department of State and the United States Executive Office of the President released a new long-term strategy for reducing CO2 emissions. The report laid out the ambitious goal of achieving net-zero emissions no later than 2050, which will require significant change, adaptation, and transformation across almost every sector, and in particular the manufacturing and transport industries.

These ambitious targets build on last year’s summit, where the US pledged to reduce net greenhouse gas emissions by 50-52% in 2030, in line with the European Council’s requirements. According to experts around the world, these new, increased goals are essential when it comes to meeting objectives set for the middle of the 21st century.


 

Around the world, the food and beverage sector is responsible for about one third of all greenhouse gas emissions, largely due to their complex supply chains. Without taking significant action to address supply chain emissions, meeting emissions targets will be a challenge. Mitigation efforts will require a significant shift in the way supply chain issues are considered within the sector, particularly when it comes to agriculture and land use.

The largest direct source of greenhouse gas emissions, is the US transportation sector, having overtaken the power sector back in 2015. It is responsible for 29% of all US greenhouse gas emissions, according to an EPA report released in 2021. As part of the drive towards Net Zero, President Joe Biden signed an Executive Order on Strengthening American Leadership in Clean Cars and Trucks in December 2021. This set a target of 50% of cars and light trucks to be zero-emissions by 2030 and directed NHTSA to finalize emissions targets for medium- and heavy-duty vehicles by December 2022.

These strategies, targets, and directives are a clear indication that the US approach to CO2 emissions is hardening, and that decisions are being made that will have significant impacts on those responsible for supply chains.

However, reducing emissions is not solely linked to vehicles, and clean technologies and lower-emission cars and trucks cannot be the only solution, even in the transportation sector. A huge part of achieving these ambitious goals will come from significant improvement in efficiency throughout the entire logistics process, including, of course, the decisive areas of warehouse and transport management. Warehouse management solutions (WMS) and transport management solutions (TMS) have become key elements that not only improve general efficiency, but are also essential to creating a more effective and seamless supply chain process, optimizing transportation and, in turn, reducing emissions.

Warehouse management solutions

The warehouse is the heart of the entire logistics system, and its management has a direct impact on the rest of the links in the supply chain including, unsurprisingly, on transportation. An effective WMS not only guarantees more efficient use of physical warehouse space but also optimizes the movement of goods and materials inside the warehouse, ensuring cost savings and reduction of emissions right from the outset. But a WMS is not just about managing what goes on in the warehouse itself. It improves the organization of transportation and creates significant improvements in this area by synchronizing warehouse operations with arrivals and departures of carriers, transferring the newfound efficiency of the warehouse to transport, and onwards to the entire supply chain.

Transportation Management Solutions

Increased focus on emissions and environmental improvements reinforces the strategic value of TMS tools as well. According to analysis by Gartner and Supply Chain Digest, among others, TMS tools can offer immediate savings of anywhere between 15% (for the annual transport costs) and 30% (for personnel and management). Greater efficiency also undoubtedly has an effect on the reduction of emissions throughout the entire logistics chain. The two-pronged benefits of using technology to improve your supply chain operations is a decisive element for companies in the immediate future.

Transportation and Climate Initiative

Many leading companies looking to take proactive and practical steps towards decarbonization participate in the Transportation and Climate Initiative (TCI), a scheme similar to the European Lean & Green platform. The TCI is a regional collaboration of 13 Northeast and Mid-Atlantic states and the District of Columbia that seeks to improve transportation, develop the clean energy economy, and reduce carbon emissions from the transportation sector.

As with the Lean & Green initiative in Europe, many companies who operate under the jurisdiction of the TCI take advantage of Generix’s WMS and TMS solutions to achieve greater efficiencies in warehouse and transportation management; solutions without which it would be extremely difficult to reduce and ameliorate the energy costs of transport.

In short, logistics is in the process of a significant transformation to meet the demands of an increasingly demanding market, as well as to address environmental targets and requirements. There are a number of technological tools already standard in the world of logistics that have completely changed the productivity of the sector, and which will be essential to be able to take the next steps towards productivity, efficiency, and decarbonization.

For the manufacturing and transport industries, the path to Net Zero does not have to be a painful one. The tools and processes that are vital for reducing emissions also come with significant benefits and improvements for productivity and efficiency.

Supply chains are central to the fight against climate change. Decarbonization and emission reduction efforts also help improve sustainability, as well as making supply chains more resilient for the future.

If you want to reduce your carbon footprint through our solutions, contact us!

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

supply chain management
Archives, Global Trade Daily, International Trade

Expert Insight: Supply Chain Disruptions Through the Eyes of TITAN Professional Tools

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“Supply chain troubles.” “From bad [2020] to worse [2021].” It was a “perfect storm for our supply chain crisis.” These are just a few of the headlines I’ve seen in recent weeks looking back on 2021. While I think we’re all eager to turn the page and start anew, I fear many of the challenges we experienced last year will continue into 2022 – and perhaps beyond. If there’s one thing we learned last year, it’s that our supply chain is more fragile than many of us imagined.

Case in point, a recent estimate from the American Trucking Associations (ATA) reported that the truck driver shortage has risen to 80,000 – an all-time high for the industry. According to the ATA study, the driver shortage could surpass 160,000 by the end of the decade, noting that the industry will need to recruit nearly one million new drivers to replace those retiring or leaving the business. Not only did the outbreak of COVID-19 in early 2020 exacerbate the issue, but it also revealed gaps in every link of the supply chain and then amplified the impact of those collective weaknesses.


 

A recent Wall Street Journal article perfectly summarized the challenge:

Trucks haul more than 70% of domestic cargo shipments. Yet many fleets say they can’t hire enough drivers to meeting booming consumer demand as the U.S. economy emerges from the pandemic. The freight backup has intensified longstanding strains in the industry over hours, pay, working conditions and retention. The surge of goods has created logjams at loading docks and port terminals, gobbling up scarce trucking capacity and making drivers’ jobs even harder. Factories and warehouses are also short of staff to load and receive goods. Meanwhile, the broader labor shortage has left openings for other blue-collar jobs that compete with trucking, including in local delivery operations, construction and manufacturing.

To better understand the operational and logistical issues retailers, importers, wholesalers and other distribution organizations are facing due to the state of today’s supply chain, I recently spoke Nick Tsitis, vice president at TITAN Professional Tools. His account is eye-opening, to say the least, and can hopefully help those facing similar challenges.

Q:  How did the Suez Canal accident create operational and logistical issues for businesses like TITAN Professional Tools?

A:  No one talks about this anymore. Before conversations of current supply chain issues, however, our forwarders often referenced the incident. I believe it significantly contributed to and accelerated our current supply chain problems, including shortages of equipment and limited space on vessels and at our ports. There’s been a huge stress on the ports, making it difficult to even get containers off the ships. And when you do get them off the ships, they sit in these piles disorderly piles they’re calling “pig piles” now. Whatever’s on top becomes available first.  And if you’re on the bottom of that pig pile, your merchandise is stuck.

So, not only is it taking time to get containers off ships, but it’s also taking time to get them from the ground onto chassis. Once containers finally do make it to our facility, and we get them unloaded, you would think with such a shortage of equipment there would be an urgency to return containers, but they cannot be returned to the port. We recently discovered 12 containers being stored in our business park from someone that is not a tenant here.  Apparently, they ran out space in their complex, and decided to park the equipment at ours.

Q: How have issues like this impacted your operating costs?

A: In so many ways.  It used to cost $1,500 to get a container from Asia to Seattle. Now we’re paying as high as $18,000. We are often charged demurrage for containers that are off vessels but not delivered to us within a week.  There are surcharges being implemented on both sides as well (Asia and USA). It’s a huge burden on us. It also affects our cash conversion cycle as goods invoiced to us are stuck in transit, and we can’t invoice until we receive and ship to our customers.

Q: How are you dealing with dock scheduling and similar issues caused by all this unpredictability?

A: Once we can get the container and get an appointment, it hasn’t been too big of a problem. On occasion, the truck drivers will have to wait sometimes six to eight hours to pick up a container. We used to pay under $100 to get a container from Seattle to Kent. Now it’s almost $700 to move it seven miles. Local drayage is up, and we’re often having to pay the drivers by the hour to wait in line to ensure we get our merchandise.

Q: Are you also facing labor shortages in the warehouse that compound these issues?

A: I know others have but we haven’t realized that because we’re a small business and have a lot of family here that have been with the company for a long time.  We are fortunate and may be y the exception when it comes to labor. But, yes, when you look down the road and see Amazon hiring at $23.50 an hour with a $3,000 signing bonus, it can be hard to compete with that.  it has in the past.

Q: How close do you think we are to seeing an end to these disruptions?

A: Well, everything’s related in one way or another – if not directly, then indirectly – to these supply chain problems. Our lead time with several factories is now as high as 18 months, where it used to take 45 to 90 days to manufacture product and 14 days transit is now taking as many as 60 or 90 days transit. There are some factories, that if we placed an order now, we won’t see it for almost two years. That’s an extreme. Most factories now are taking 6 to 8 months. As a result, we’re buying out a year, which is really scary. So, yes, it’s going to take a long time to recover. I don’t think it’s going to get back to normal for at least another year.

Q:  Based on your experiences, what advice would you share with other businesses facing similar challenges?

A:  We often use the word “partnership” between vendors and customers. We are making it thru these challenging times because of the true partnerships we have on both sides, with our vendors, and our customers. Everyone is understanding, being more flexible and forgiving, and more willing to accommodate than before. Pardon the pun, but everyone is “in the same boat” on this.  We need to work together to get through it.

talent
Archives, Global Logistics, Global Trade Daily, Special Reports

Hiring Supply Chain Talent: What to Look for In the Perfect Candidate

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If your business is growing, maybe it is the right time to hire new talent. It also means facing the challenge of the dearth of supply chain talent and overcoming it. It is pretty common to find business growth these days with job titles evolving and shifting because of quick changes in supply chain management and the latest technology-oriented needs. With several businesses trying to remain competitive there is more demand for talent. Management of the ways you will use to seek the supply chain talent can make or break your organization. Here are some attributes you need to watch out for.

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Soft skills: Most recruiters normally have a list of around thirty job skills that they are looking out for while reviewing the candidates. It is pretty common for the supply chain industry. Soft skills are the top priority for producing more successful recruitment. Some of them include email marketing skills, fundamental business ethics, communication skills, and problem-solving skills. All of these may be identified via past job experience of the candidates, references, and the responses they provide to some key questions at the time of the job interview. When you are looking to hire globally you can take help from PEO services.

Inventory, finance, and supplier management experience: Watch out for earlier experience in financial, supplier, and inventory management together with direct knowledge. These are the important components of the skill sets required for a hire. If the candidate has financial management training in fields such as investing it is a massive advantage. Maybe this talent did not go through massive numbers every day in his earlier position. But there will be sufficient indications of whether the candidate has the requisite understanding of data utilization for making solid business decisions.

Education and area of interest: You need to look out for candidates that have certifications and university training. Some of the specific things you must look out for include participation in projects that involve a basic understanding of financial matters and problem-solving that is related to them. Sometimes even the way they handle personal finances could show something about their work skills. You need to look for talent that has enthusiasm, passion, and energy for the position he or she is applying for. For instance, they would have researched and displayed knowledge about an organization and how their skills could benefit this business.

Result-oriented track record: Ask the prospective candidates, not just about their earlier job responsibilities. Ask them to correctly quantify the results also. Try and find out people that will produce some examples of the projects they have accomplished with good results in their resumes. It should demonstrate that they had to work with supply chain departments, service providers, and suppliers. You also need to be flexible and open-minded while considering the top talent from other industries and fields. There are many candidates out there that are working in other professions. However, they have transferable skills that can make them the right candidate for your supply chain.

Hire female candidates: Women are under-represented in many industries and it’s imperative that we find ways to bring them into the fold. In order to remain competitive in the future of supply chain management, it is important that you consider hiring female talent for roles usually reserved for males. They can take on roles that men have traditionally held, but with some added perks- they’re better at relationship building and interpersonal skills which will be important for certain jobs. The best way to find a replacement for your position is by interviewing applicants who have the skills you need. This will allow you get more personal insight into their personality, knowledge of procedures, and ability-to-efficiently perform job duties than if they were applying without being interviewed first. You can also look at female workers’ resumes or career paths during mentorship programs that involved working closely with seasoned professionals in similar fields.

Conclusion

There are challenges involved in securing the supply chain talent at the moment, especially for filling out the necessary positions. it is a good idea to change your approach. You need to examine the staffing forecast, be aware of the specific needs and trends from historical data, and develop a talent management program. After doing all this, you need to take a closer look at the candidate pipeline that is capable of fulfilling the continuous hiring requirement. The organizations that perform well are the ones that consider the recruitment department as a value-added and strategic program.

diapers
Archives, Global Trade Daily, News

China Has Doubled Exports of Sanitary Towel, Tampon and Diaper to $2.3B

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IndexBox has just published a new report: ‘China – Sanitary Towels, Tampons, Napkins And Napkin Liners For Babies – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

China’s Exports of Sanitary Towels and Napkins

From 2013 to 2020, China doubled exports of sanitary towels, tampons, napkins and diapers to $2.3B. In physical terms, supplies from China rose from 325K tonnes to 726K tonnes during that period (IndexBox estimates).

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In 2020, the U.S. (148K tonnes), the Philippines (90K tonnes) and Australia (44K tonnes) were the main destinations of exports of sanitary towels, tampons, napkins and diapers for babies from China, with a combined 39% share of total supplies. These countries were followed by South Korea, Viet Nam, Russia, Japan, Hong Kong SAR, Venezuela, Chile, South Africa, Taiwan (Chinese) and Myanmar, which together accounted for a further 26%.

In value terms, the U.S. ($377M), the Philippines ($227M) and Australia ($123M) appeared to be the largest markets for sanitary towels, tampons, napkins and diapers exported from China worldwide, with a combined 32% share of total supplies. These countries were followed by Viet Nam, South Korea, Russia, Venezuela, Hong Kong SAR, Chile, Japan, Myanmar, South Africa and Taiwan (Chinese), which together accounted for a further 30%.

In 2020, Venezuela (+67.3% per year) saw the highest growth rate of the value of exports, while shipments for the other leaders experienced more modest paces of growth. In 2020, the average export price for sanitary towels, tampons, napkins and diapers for babies amounted to $3,122 per tonne, remaining relatively unchanged against the previous year. There were significant differences in the average prices for the major overseas markets. In 2020, the country with the highest price was Venezuela ($5,012 per tonne), while the average price for exports to the Philippines ($2,529 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Venezuela, while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform

dry bulk
Archives, Global Logistics, Ocean Ports

DRY BULK PROFITS SURGE TO MULTI-YEAR HIGHS DESPITE PANDEMIC-RELATED DEMAND AND DISRUPTIONS

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Heading into the 2021 holiday shopping season (a.k.a. the strongest part of the year), dry bulk owners could already celebrate a very profitable year with the temporary factors helping the market stay strong expected to continue providing support in 2022.

DEMAND DRIVERS AND FREIGHT RATES

The dry bulk shipping industry continued in late 2021 to enjoy a bumper year, with average earnings continuing to outshine any profits made in the past couple of years. As is often the case, Capesizes (the largest dry bulk ships) are taking the spotlight, with recent earnings peaking above $50,000 per day. A much more consistent and stable increase is recorded for Handysize and Supramax ships. These saw average earnings rise to $33,087 and $36,832 per day on Sept. 3, 2021. On the same day, a Panamax ship could expect to earn $32,445 per day.


 

Time charter rates underline the current strength of the market, with charterers currently paying double, if not 2.5 times as much, at the end of August compared with the start of 2021. A one-year time charter on a Capesize ship at the start of the year would have brought owners $16,500 per day. By Aug. 27, the figure was $32,750. Supramax ships have recorded the largest increase, with one-year time charter rates rising by 179.3% since the start of the year to $29,500 per day.

The high freight rates can be partially attributed to the restrictions and problems at ports due to the pandemic, which are tying up ships for longer than usual. On Sept. 1, 2021, 674 dry bulk ships had been waiting in China for two days or more. On the same day in pre-pandemic 2019, only 287 dry bulk ships had been waiting this long (source: Oceanbolt).

As an example of what this means for an individual trade, Oceanbolt data for ships sailing from Port Hedland, Western Australia, to Qingdao, China, shows that the average time for the journey (including waiting time at the load and discharge ports) has risen by 22.7%. In July 2021, it took an average of 33.5 days, while in July 2019 it could be completed in 27.3 days.

As well as congested ports, the recent pick-up in Brazilian iron ore cargoes to China has helped lift the Capesize market. In August, 21 iron ore cargoes were offered on the spot market, compared to 11 in July and the highest weekly number of cargoes since April (source: Commodore). During the first seven months of the year, Brazil exported 198.8m tons of iron ore, a 10.8% increase from 2020 and up 1.0% from 2019. However, it remains 15.0m tons lower than the record-high exports of 213.7m tons that were recorded in the first seven months of 2018.

China has received 65% of Brazilian iron ore exports during the year to date (through September 2021), with volumes on this trade growing by 6.2% over this period. Here, volumes of iron ore have grown compared to 2018, as China has taken a larger share of the total. This is clearly good news for dry bulk demand; the larger the share heading to China, the higher the ton mile due to the long distance.

There has also been strong growth in grain exports from the world’s largest exporters. Grain exports from the biggest exporters grew by 6.3% to a record 162.0m tons in the first six months of 2021. The driver of this growth was the U.S., which has seen its grain exports rise by 39.3%, jumping from 51.3m tons in the first half of 2020 to 71.5m tons. In contrast, exports from Brazil and Argentina have declined. Brazilian exports are down by 0.3% to 61.5m tons, while those from Argentina have fallen by 26.3% to 29.0m tons.

American coarse grains exports have seen the highest growth, up 19.2m tons (+67.1%) in the first seven months of 2021 compared to the same period in 2020. These additional volumes are the equivalent of an extra 257 Panamax loads (75,000 tons). Just behind in terms of volume growth are U.S. soy bean exports, which had a strong off-season, with exports in the first six months of 2021 amounting to 17.8m tons, a 7.8% increase from last year.

The new U.S. marketing year began in September, and exports of soy beans will have once more increased. Compared to the start of the 2020/2021 marketing year, outstanding sales are much lower, currently standing at 17.8m tons, compared with 29.4m tons on Sept. 1, 2020. While more sales will soon be added to the current level of outstanding sales, it is unlikely that volumes in the 2021/2022 season that is now under way will reach the 60.3m tons of soy beans that were exported in the 2020/2021 season.

FLEET NEWS

Around three-quarters of the dry bulk deliveries expected for 2021 arrived, adding 26.7m DWT of capacity and bringing the total fleet to 934m DWT. BIMCO expected the fleet to grow to 940m DWT over the subsequent months, result in fleet growth of 3% for the calendar year.

Of the 26.7m DWT delivered so far this year, half came from the 61 new Capesize ships, of which 51 have a capacity of 180,000 DWT or more, with 10 of these exceeding 300,000 DWT.

At the other end of the lifecycle, only 4.8m DWT of capacity has been demolished. BIMCO expected demolition by the end of 2021 to reach around 7m DWT, less than half of what was removed from the market in 2020, as the earnings potential for ships has incentivized owners to keep their ships sailing. This once again proves that the strength of the freight markets has a much greater influence on demolition than steel prices.

The summer months saw the dry bulk orderbook grow by 67 ships, as 5.7m DWT was ordered in June through August. All but one will be delivered in 2023 and 2024. The orders include 2.3m and 2.5m DWT of Capesize and Panamax ships, respectively.

Including all orders, the orderbook currently stands at 53.9m DWT, a significant decrease from 71.6m DWT in August 2020 and 97.8m DWT in August 2019, as ships have been delivered faster than new ones are being ordered.

OUTLOOK


In what was seasonally the strongest part of the year for dry bulk—fall/winter—the market looked promising, and operators had already been recording solid profits for the year.

While countries enforce quarantine and testing requirements, and ports face sudden disruptions due to local and regional outbreaks, the congestion that is draining the market of capacity will continue to support earnings in the dry bulk market. The market is expected to stay strong into 2022 until the factors that are currently beneficial to the market such as congestion and pandemic related delays, spill-over from the red-hot container market, stimulus driven demand and strong growth in the manufacturing sector become less so.

In the longer term, however, the underlying volumes may be less supportive. After strong growth in the first half of 2021, the Chinese government seems keen to clamp down on the steel and other heavy industries to limit emissions. One big question is how strictly these measures will be enforced and whether they will start to constrain economic growth. The two largest dry bulk goods imported by China in terms of volume, iron ore and coal, both fell year-on-year during the first seven months of 2021. Iron ore imports fell by 10.5m tons (-1.5%) and coal imports were down by 30.4m tons (-15.0%). Imports of both of these goods stood at a record high in 2020, and as government restrictions come into play, it seems increasingly unlikely that these levels of imports will be repeated.

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Peter Sand had been the chief shipping analyst for more than 10 years when Copenhagen, Denmark-based BIMCO, which is one of the largest international shipping associations for shipowners, published this report in September. That same month, Xeneta announced that Mr. Sand had joined the Oslo, Norway-based market analysis company.