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Emerging Transportation Innovations to Watch out for in 2021

innovations

Emerging Transportation Innovations to Watch out for in 2021

As technology continues to develop, new trends emerge. While driving AI is still not advanced enough to give us fully automated vehicles, there are other trends that stand to change the transportation industry as we know it. So, to get a better understanding of where the industry is now, let’s take a look at some of the more notable trends. Here are emerging transportation innovations to watch out for in 2021.

Emerging transportation innovations

While the pandemic has impacted the transportation industry in general, the development of new technologies hasn’t slowed down at all. People have recognized that the setbacks were temporary. Some areas of transport, like medical equipment shipping, even grew due to increased needs. So, it is fair to assume that the transportation industry as a whole will continue to develop. Seeing how there are numerous innovations in electronic vehicles, eco-friendly fuels, logistic systems, and automation still in development, we cannot cover all of them. To keep a certain sense of scale, we will focus primarily on the innovations on the rise in 2021.

V2X communication

One of vehicle technology goals is that all vehicles have constant, seamless data change with their HQ. Ideally, this will include not only things like location and speed but also vehicle state, health, and fuel. While we have not yet achieved such a high level of communication, we have made significant steps toward its development.

One of those steps is the FCC ruling in November 2020 regarding V2X (vehicle-to-everything communication). To put it simply, it requires the 5.9 gigahertz band to allocate 75 megahertz for cellular V2X communication and Wi-Fi. Initially, the FCC used this band exclusively for DSRC (dedicated short-range communication) since 1999. Cellular V2X (C-V2X) is just like V2X. The only difference is that it contains two transition modes. Vehicles use the first one to communicate with other vehicles, as well as pedestrians and infrastructures. The second one enables them to connect to the cloud network. This allows drivers to get information about available parking, potential traffic issues, etc. If you want to research it more, know that the development of the 5G internet is closely connected to C-V2X.

Federal transport funding

While the private sector knows that the effects of COVID-19 are temporary, the federal government doesn’t hold such views. Due to lack of travel in 2020 and 2021, the government has decreased funding to the transportation industry. How big of an impact this will have on the overall trading industry is hard to say. After all, commercial transport is still in high demand. Still, it is hard not to notice the substantial cut to funding.

Touchless activation

Once the COVID-19 pandemic started, one of the first things we’ve learned is that the virus can spread through physical contact. Apart from people disinfecting their hands and avoiding touching, this has also motivated the transportation industry to find as many touchless alternatives as possible. As a result, we have iDetect activation, where people can wave their hand in front of a sensor instead of pressing a button.

Furthermore, FLIR and TAPCO have partnered up to provide FLIR thermal activators for all pedestrian crosswalk systems. As the name suggests, this system uses thermal activation instead of physical contact to activate crosswalk signaling. Finally, we also have infrared bollards to help those that cannot reach the alert systems with such ease. These bollards automatically scan for vulnerable road users and set the necessary systems in motion.

License plate recognition

The final notable advancement in transportation (more specifically vehicle) technology is license plate recognition. Law enforcement especially has made great use of emerging license plate technologies in 2021. AI systems can load and check a license plate within seconds. This makes checking up on suspicious vehicles, both during the drive and while stopped, much safer, faster, and efficient. Even parking fines have become automated in certain countries as police vehicles simply drive through the city and gather info via video. Once these technologies become more available, we are sure that the logistics companies will find a good use for them. But, for now, they are more than useful for law enforcement.

What the future holds for transportation

While the emerging transportation innovations show much promise, they are only a glimpse of what’s to come. Before long, we won’t be surprised that there are individual vehicles and entire fleets of fully automated transports. We will probably first see these automated vehicles in trains and ships, as there are fewer variables to keep track of there. But, as the self-driving AI progresses, we are bound to see self-driving trucks, cars, and planes. Keep in mind that it’s in AI’s nature to develop exponentially. So, once it starts advancing, it is only going to speed up over time. Therefore, if we get rudimental self-driving AI within ten years, fully automated vehicles two years after that shouldn’t be surprising.

Logistics

Another trend to keep close track of is the development of logistics. More and more, logistics is becoming automated. After all, gathering and processing all necessary info for logistics far surpasses the capabilities of any human. While logistics managers simply use these systems to plan their routes, we won’t be surprised if logistics systems become better at planning. Remember, most logistics decisions are based on prior learning and predictions. So, the better a model we can create for logistics, the sooner the AI can start learning. And once it does, keep in mind the exponential development.

Fuel alternatives

When talking about emerging transportation innovations, it’s important to mention innovations in fuel and energy. While electric vehicles seemed impossible just a decade ago, Elon Musk proved everyone wrong with his Tesla company. While there are no huge updates in the industry, it is essential to note that it is growing. Eco-friendliness is, as it should be, a major concern for developed countries. With luck, we should see a general decrease in fossil fuels and an increase in greener options.

____________________________________________________________________

Jacob Sherman has worked in the transport industry for over 20 years, mainly helping moving companies like Zippy Shell Louisiana with logistics and planning. Now, he uses his experience to write insightful articles about the transportation industry. In his spare time, he enjoys cooking for his family and going on long hikes.

workplace injuries

Industries With the Highest Rates of Workplace Injuries

One of the concepts that the COVID-19 pandemic brought to the forefront of the public imagination is the idea of an “essential worker.” The pandemic highlighted that many professions are critical for allowing the rest of the economy and society to function properly, especially in a time of crisis. Some essential professionals like health workers and teachers were already held in high regard, but COVID-19 put a new spotlight on workers in oft-overlooked industries like grocery, elder care, and shipping and logistics.

Of course, the reason why these professions have drawn attention is the fact that workers in these fields kept working despite higher risks of virus exposure in the course of doing their jobs. Early on in the pandemic, many people were easily able to transition to working remotely, while many others saw their jobs eliminated or hours reduced as a result of COVID-19’s economic shocks. But essential workers mostly continued working in-person, all the while confronting the greater possibility of contracting COVID-19.

These varying experiences of COVID-19 across professions reflect the larger fact that every job has different levels and types of risk inherent in the work. Professions that involve manual labor or interacting with tools and machinery tend to be among the most prone to injury and illness, but no job is perfectly safe. Fortunately, however, the U.S. has seen positive trends in reducing the number and severity of work-related injuries and illnesses in recent years.

According to data from the Bureau of Labor Statistics, the overall number of cases per 100 full-time workers has been cut nearly in half over the last two decades, from 5.0 in 2003 to 2.8 in 2019. And this is part of a much longer-running trend that began with the creation of the Occupational Safety and Health Administration in the early 1970s. When OSHA was created in 1971, the rate of injury and illness on the job was 11 per 100 workers, but that number has been on the decline ever since thanks to OSHA and other efforts to promote workplace safety.

Lower incidences of workplace injury and illness overall have come with a parallel reduction in the number of injuries and illnesses that inhibit the ability to work. In 2003, there were 1.5 cases per 100 workers that led to days away from work. That number dipped to 1.0 in 2011 and has remained at or below that level ever since.

Despite this progress overall, the risk profile across professions continues to vary, and the data suggest that these different risk levels are also closely correlated with income. In general, industries with lower median earnings tend to see more work-related illnesses or injuries, while industries with higher earnings tend to see fewer. This situation is likely to be exacerbated by COVID-19, as many essential professions or other jobs that have continued in-person also pay lower wages than the lower-risk white-collar jobs that were able to transition to virtual work.

To identify the industries with the highest rates of workplace injuries, researchers at Construction Coverage collected data from the Bureau of Labor Statistics, including each industry’s total number of cases per 100 workers, cases resulting in missed days or job transfer/restrictions, median wage, and total employment. Industries were ranked by the total number of cases per 100 workers.

Here are the industries with the highest rates of workplace injuries.

Industry
Rank
           Total  cases (per 100 workers)
Cases with days away from work (per 100 workers)
Cases with days of job transfer/restriction (per 100 workers)
Other cases (per 100 workers)
Median annual wage
Total employment
Couriers and messengers    1      8.1 3.3 2.8 2.1 $36,890 796,660
Air transportation    2      6.5 3.7 1.5 1.2 $62,480 498,830
Wood product manufacturing    3      6.1 1.8 1.7 2.6 $34,260 406,100
Performing arts, spectator sports, and related industries    4      6.0 1.4 1.9 2.7 $37,330 519,810
Nursing and residential care facilities    5      5.9 1.7 1.8 2.4 $30,370 3,351,090
Animal production and aquaculture    6      5.6 2.1 1.3 2.1 N/A N/A
Hospitals    7      5.5 1.3 0.9 3.3 $58,210 6,094,940
Crop production    8      5.3 1.4 1.6 2.2 N/A N/A
Support activities for agriculture and forestry    9      5.2 1.8 1.5 1.9 $26,430 382,330
Building material and garden equipment and supplies dealers    10      4.9 1.6 1.7 1.6 $29,830 1,311,670
Warehousing and storage    11      4.8 1.9 1.7 1.2 $36,170 1,214,230
General merchandise stores    12      4.6 1.2 1.6 1.8 $25,310 3,129,540
Fishing, hunting and trapping    13      4.6 2.3 N/A 1.5 N/A N/A
Primary metal manufacturing    14      4.4 1.2 1.5 1.7 $44,520 385,910
Beverage and tobacco product manufacturing    15      4.3 1.3 1.6 1.4 $38,680 282,110

 

*Incidence rates represent the number of injuries and illnesses per 100 full-time workers

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/industries-with-highest-rates-of-workplace-injuries-2021

sustainability

An Efficient Supply Chain is by Nature a More Sustainable One

It’s C.H. Robinson’s mission to improve the world’s supply chains. We’ve been doing it for decades now. But in a world ever more conscious of the imperative to reduce carbon emissions, helping customers move their freight more efficiently has taken on new urgency.

Our customers are tackling their carbon footprint from all angles, from their facilities to the source of their electricity. They’re turning to us for help with an even more challenging sustainability goal: reducing greenhouse gases across their supply chains. With nearly 200,000 customers and contract carriers worldwide, we stand to make a significant impact on sustainability across the industry.

New technology and data we’ve launched are proving to be an accelerator of change. Now that companies can get an instant calculation of all their transportation emissions, a huge barrier is removed and the possibilities for reduction are revealed. We helped one of the largest outdoor retailers reduce their carbon output through mode conversion and purchase order aggregation, which eliminated 1,270 metric tons of emissions from their supply chain in one year – the equivalent of 3,000 barrels of oil.

Load and mode optimization, consolidation, and eliminating empty miles are some of the ways we make supply chains more efficient. As Chief Human Resources and E.S.G. Officer for C.H. Robinson, I’m proud to say that those services are also some of our most effective sustainability solutions.

For example, because C.H. Robinson’s technology is built by and for supply chain experts, we can uncover that a customer’s weekly freight from Los Angeles to Chicago is consistently seven different less-than-truckload (LTL) shipments from seven different vendors. To help the customer save money, reduce waste and achieve their sustainability goals, we can consolidate that onto one truck. That’s six cross-country shipments and a lot of emissions eliminated. More efficient. More sustainable.

Our global suite of services also provides more options. For example, if that customer has bigger shipments that are less time-sensitive, one option would be switching from trucks to rail. On average, a ton of freight can move 470 miles by rail on a single gallon of gas. More efficient. More sustainable.

Just think about the carbon reduction that’s possible in a major national retailer’s supply chain. Let’s say the retailer has hundreds of shipments going from Amsterdam to Barcelona every week, with trucks driving back empty to pick up their next load. Those are wasted miles.

Because of our global scope and scale, our supply chain experts can optimize that, too. While even the largest of retailers only has visibility into their own freight, C.H. Robinson has visibility into 19 million shipments annually. It’s an enormous information advantage for our customers. Across our vast network of contract carriers, we can identify hundreds of trucks on similar schedules going from Barcelona to Amsterdam. Pairing up that freight can eliminate those empty miles and the associated carbon emissions. More efficient. More sustainable.

In my E.S.G. role at C.H. Robinson, I have the privilege of seeing how our expertise in solving the most complex supply chain problems is creating a more sustainable future for our customers, our industry and our planet. Let us help you achieve your sustainability goals.

___________________________________________________________________________

Angie Freeman is the Chief Human Resources & ESG Officer at C.H. Robinson

shipper

Be More Than a “Shipper of Choice” to Differentiate from The Competition

Severe truck capacity shortages mixed with high freight demand continue to plague the road transportation market for shippers in 2021. As a result, shippers are having trouble maintaining pricing power and contract rate compliance in this inflationary market. According to the latest DHL Supply Chain Pricing Power Index, road carriers will retain pricing power in the transportation market for the foreseeable future.1 One major component of the index is freight tender rejections, which have jumped to a staggering 30%, further reinforcing the magnitude of truck capacity shortages.1 To combat these unfavorable conditions, shippers cannot continue to exercise a transactional approach to supplier relationship management and expect to retain service providers and grow relationships in the future.

Shippers must differentiate from the competition and go beyond the best practices of reducing detention time, providing driver amenities, implementing favorable payment terms, and tendering steady freight volume. These “Shipper of Choice” best practices should already be standard procedures for any organization today. Instead, they need to adopt a new mindset to differentiate themselves and remain competitive.

Today, manufacturers, distributors, and retailers need to be more than just a “Shipper of Choice” to grow their business and add value to their supply base. For shippers to provide real competitive value from now on, they need to address each of the following:

1. Adopt a partnership first mindset by developing a robust strategic carrier base and minimizing transactional relationships:

Shippers should continue to form deep alliances with carriers and prioritize collaboration over temporary rate cuts; it will provide a competitive advantage. In the North American truckload market, buyers often engage in transactional relationships with suppliers, operating directly from the spot market or leveraging continuous sourcing initiatives and short-term contracts. While this might temporarily raise positioning power for a shipper, it falls short as an overall approach to procurement and carrier management, ultimately harming supplier relations. Instead, strong carrier integration will provide shippers with more value opportunities such as joint ventures, cooperative savings strategies, detailed service level agreements, and optimized distribution networks. An efficient long-term partnership with a strategic carrier base nets more significant savings opportunities and helps a shipper remain innovative, profitable, and competitive.

2. Share consistent performance transparency through a voice of supplier and carrier scorecards:

Move away from a reactive approach to supplier relationship management to a strategic one by improving carrier communication and continuously refining operations. Through a “Voice of Supplier,” a carrier can provide reliable market intelligence to a shipper, including insight into how a shipper compares to the competition. Organizations should use this feedback to invest in improvement initiatives, such as internal development programs, to keep carrier turnover low and attract new service providers.

Use carrier scorecards to ensure suppliers understand where their performance ranks based on a set of key performance indicators. Then detail those metrics, especially on-time delivery and tender acceptance rate, to make immediate changes and correct recurring inefficiencies. That process helps provide a pathway to successful future interactions and strengthens a partnership. If a carrier is to remain compliant, a shipper must hold their performance accountable too. Measuring performance, such as OS&D percentage and freight allocation, will instill trust in the carrier base that a shipper will work at their improvement areas.

3. Embrace technology for improved connectivity, visibility, and communication:

Logistics companies deal with vast quantities of data simultaneously. Employing a global Transportation Management System (TMS) and Freight Bill Payment and Audit (FBP&A) program yields increased accuracy for shipment tracking, rate compliance, and freight spend visibility. They reduce rework that comes with manual process errors, allowing a shipper to streamline operations and identify more cost-saving opportunities. With the increased market volatility in the logistics industry, logistics managers must maintain real-time visibility into the flow of goods through their worldwide network. The ability to track a product’s location from the first mile to the last is now a must-do.

Application Program Interface (API) is becoming the preferred system over Electronic Data Interchange (EDI) for information exchange between shippers and carriers. Purchase orders, shipping statuses, payment confirmations, and other data sets are sent seamlessly between carrier and shipper without delay. API enhances connectivity, leverages automation, and seamlessly integrates a supply base. Carriers embrace that technology and are no longer inclined to haul for those shippers who are still reluctant to invest and adapt.

If shippers have not already, they need to begin treating carriers as core business partners. 2020 marked a year filled with uncertainty and market volatility for the logistics industry. In 2021, shippers will continue to wrestle with severe capacity constraints and will need to tackle unique challenges in the future market climate. Collaboration with suppliers makes overcoming those hurdles much easier. Employing the covenanted “Shipper of Choice” best practices is now a requirement but adopting a new supplier relationship mindset and embracing new technology will help organizations remain competitive and differentiate from the competition. 

 __________________________________________________________________

Alex Hayes is a Senior Associate at GEP, a leading provider of procurement and supply chain solutions to Fortune 500 companies.

Citations: 1https://www.freightwaves.com/news/stimulus-round-3-provides-huge-boost-to-consumer-economy-freight-volumes-are-next
vessel

View from the US Gulf: Veteran Surveyor Details the Pitfalls of the Vessel Draught Survey

In this article, Chris Zeringue, Owner, MTS Marine Technical Surveyors, and a longtime worker on US Gulf waters, explains the pitfalls in Vessel Draught Surveys, and how prevailing water conditions and accessibility differences can result in ‘guesstimations’ rather than precise answers. He looks back on a long career on the water and explains where his passion for cargo surveying started.

The key to accuracy in a vessel draught survey may very well be found in a hole in the ship. I boarded my first vessel at the age of 17 in 1975. I was hired out of the local shape-up yard for the night shift aboard a bulker loaded with imported sugar. My job was to shovel sugar out of the vessel hold ribs(trimmer) so that the bulldozer/tractor could push the cargo to the crane bucket. My neighbour was the lead superintendent on the job and his son and I would ride to the shape-up yard with him and put our names on the list to try to get hired for a day or night. If there were not enough Union Hands for the job, they would then call out the names of the non-union hands (aka rabbits). On the days/nights that we did not make the cut, we would hitchhike or walk home, meaning we would have to cross the Mississippi River Bridge by foot at times. My other job during school was working nights and weekends for a mooring company.

The more I worked, the more I liked the waterfront. While shovelling cargo in the bottom of ship holds, my neighbour (the superintendent) would throw an apple or orange down to me to eat. Looking up one day there was a man standing next to him just observing. When I went up out of the hold for a meal break, I asked my neighbour, Papa Deck, “who was the guy with you?” His answer was, “he is a surveyor, and his job is to verify cargo quantity and quality.” I knew from that moment that I would someday trade my shovel position to be a Surveyor.

In 1978, I was hired at my first Surveying (training) position. Now fast forward 42 years and I am one of the owners of a survey company specializing in Ag and Fertilizer products at Marine Technical. Surveyors. I have travelled the world surveying and monitoring customers’ cargoes and solving customer issues.

The one thing that has always bothered me when it came to the accuracy of cargo accountability on bulkers was how to account for water conditions. On bulk cargo carriers, cargo accountability is determined by way of a Vessel Draught Survey, based on water displacement. Many factors go into the calculations and equations, but the one factor stated to be the most important (reference: The Naval Arch, Draught Surveys) yet least controllable, because of water conditions and accessibility, is the reading of the draught marks. The draught marks are stencilled at six positions on the vessel’s hull (forward/bow port and starboard, midship port and starboard, aft/stern port, and starboard).

These number stencils (usually in metres) are normally 10cm tall with 10cm space between each number. The numbers are usually in equal numerical stencils (2, 4, 6, 8 then the next metre number). As the water touches the bottom of the number 4 (using 4 as an example), the reading is 40cm, the middle of the 4 would be 45cm and the top would 50cm. Between 50 (top of the 4) and 60 (bottom of the 6), the surveyor has to make a visual judgment call. As in all surveys, the reading of the draught marks visually are judgmental calls. So, add in high swells, waves, chop, ice, obstruction, non-accessible points, and now you have guesstimations.

On bulk vessels of Handy and Panamax size, the vessel’s average in TPC (tonnes per centimetre) is approximately 50–65. So, this means that the distance in Draught from the bottom of the Draught Mark stencilled number to the top (10-cm) represents up to 650 tons.

Even in a light chop, there are 600–700 tonnes of possible error, noted in the photo at the bottom of p48. One could only imagine the judgment in 0.5 to 1m swells.

Or trying to read these in the dark of night, from a crew boat from a distance, or in heavy current. Because of anchors, buoys, and swift water, what we can see in the photo is as close as the launch boat can safely get.

And while one is riding around the vessel obtaining draughts, the remainder of the survey (ballast, voids, fuel, etc.) is out of the surveyor’s reach or control.

I once sent the photo at the top of p48 to a customer and said, “tell me where the water is and I’ll tell you what your tonnage
is.”

The Vessel Draught Survey consists of two parts, open and close, or light and heavy. The difference in water displaced between the two equals the quantity of cargo loaded (with adjustments made for ballast, bunkers, etc.). No matter the condition of the water which the vessel is sitting in, the show must go on. Time is always an issue with a vessel, and time is money. The draughts must be read, and from that, the calculations are made and the BOL (Bill of Lading) and Mates Receipt are set. Buyers and sellers trade on this number.

Many draught marks on the bow, stern, and offshore side are not accessible. I asked each of these guys in the first photo in this article (p47), what they had (without them saying out loud) and there was a large variance between each of their findings, and this was in calm water.

Try reading that draught from many metres away, looking down on it. The photograph below shows the vantage point for the guys in the first photo in this article.

Or try getting an accurate mid-ship draught, one of the most important readings of the survey, from the vantage point in swells (see photo, below).

Once the vessel is loaded, no matter what water conditions it’s loaded in, the vessel is to carry and deliver the BOL quantity (created by the Vessel Draught Survey). The seller sold the amount, the buyer bought the amount, and the vessel is paid freight on the amount. In many cases, the parties trading paper have no idea how the numbers were derived.

I guess this is why so many vessels now have a standard clause in their documents stating that they cannot guarantee the accuracy of the agreed-upon tonnage listed (verbiage differs, but generally states). It is stated that in optimal conditions, Vessel Draught Surveys are subject to 0.5% variances.

Now, as the vessel arrives for delivery, it is the position of the vessel to make sure that the arrival vessel draught survey matches the departure draught survey within close tolerances. If the cargo is delivered into a warehouse and the warehouse is not emptied and zeroed out immediately after the delivery, a loss/gain of cargo can’t be attributed to a certain vessel. In many cases, the tonnage on the ‘paper trail’ is kept in close tolerances, regardless of the cargo aboard or delivered. In some cases, common cargo warehouses may take more than a year (and many vessel deliveries) to zero out all cargo. In a case where a vessel delivers to another vessel or onto barges, there is an instant check and balance, a shortage or overage is noticed immediately. On an overage, you will not hear a peep, but on a shortage you, as the receiver surveyor are looked at as if you are responsible for the shortage, just for being the messenger of bad news. In my opinion, shortages outweigh overages manyfold, due to the vessel wanting to err on the side of caution to not exceed destination arrival draught restriction requirements, or carry cargo which they will not get freight. In most cases, the source of the problem can be attributed to the conditions of the water surface at the load port, yet is hidden in a paper trail.

How could this issue be eliminated? And is there a more accurate way to read the draughts? Well, devices have been made (such as freeboard indicators) but are not practical in all water, wave, and current applications. Years ago I invented such a device, which worked very well, but it would have to be attached to the hull at
the draught marks, which is not practical and can’t always be achieved. As I would say, when it is needed (in heavy sea swells and fast current) it couldn’t be used, and when it could be used (in perfectly calm water conditions) it is not needed. The one thing that keeps echoing in my mind is a hole in the ship (aka ‘The Zounding Tube’, named after the one who keeps thinking of it).

Having a sounding tube in the mid-ship point of the vessel (on a new build), or one port and one starboard, mid-ship, on a retrofit, through an existing ballast tank, which would go from keel to deck. With this, trim and list would not affect the readings because of their central location. In a perfect world, three tubes (one forward, mid and aft) could be added, to adust for hog and sag. A chart could be applied so that an ullage/outage could be taken (from a fixed given point to the water within the tube/pipe) and converted to draught. This draught reading would not be affected by waves, swells, etc., due to hydraulic pressure and the fact that water is calm below the surface. Accuracy could be achieved. I have always asked myself if this is possible and would it work?

Technologies have changed dramatically over the last 45 years — but the extremely important issue of vessel draught surveys have been largely left behind. The safe carriage of cargo is the vessel’s first concern, and it should be, but tonnage accountability is also very important. When I started 45 years ago, the older guys were still hauling adding machines onboard vessels to do their calculations, then calculators, and now computers. Liquid and gas cargo vessels (for years) now use sonar, radar, and level gauges for cargo readings. Zounding tubes could be equipped with radar which could send accurate draughts back to the cargo control room, for continuous accurate tonnage monitoring. And of course, safety remains paramount. All this could be done on the deck of the vessel, rather than hanging off the sides or in a crew boat in traffic and current.

At this point, I would have to leave the idea with naval architects and Class Societies, vessel designers and builders, as I am not well versed in the stress and build-out of vessels. One would think that as a proof of concept, a simple temporary test could be performed using a PVC pipe on the outer hull at mid-ship to compare reading accuracy. I guess as one works a lifetime at his/her craft, they hope to leave it better than they found it and also hope to leave their mark, as did Plimsoll in 1876.

I do know that billions of dollars are traded based on Vessel Draught Surveys, which are subject to accuracy by the water which the vessel lays afloat.

______________________________________________________________________

ABOUT CHRIS ZERINGUE: OWNER, MARINE TECHNICAL SURVEYORS (MTS)

Born in August of 1958, one of six children of a working class family, for Larry ‘Chris’ Zeringue, the old cliche of “born and raised on banks of the Mississippi River” could not be more true.

With his homes from birth to manhood being only yards from the river’s edge in the small town of Donaldsonville Louisiana — (all homesteads in a settlement called Smoke Bend).

The Mighty Mississippi became Chris’s playground as a child, passion as a young man and gateway to the world as an adult.

By the age of 17, Chris was working on the river — his passion and pride for his work were only outpaced by his energy levels and tireless efforts as a hard worker and businessman.

After many years of working on the river, in 1993 Zeringue founded and coowned Marine Technical Surveyors (with two other seasoned surveyors).

Zeringue worked day and night as a river rat and in suit and tie to see MTS to what it is today. MTS employs and has employed many great people, family and friends, over the past 28 years.

And like the waters of the river, and so many of its southbound vessels, Zeringue too would see his way across the world to many major ports.

Zeringue pursued that same passion on the behalf of his customers — representing their cargo and their reputations in numerous ports in countless countries.

The Zounding tube is only one of many ideas that Zeringue has arrived at in his efforts to better represent the most accurate accounts of cargo.

For Zeringue, it is not the recognition of an invention that bring his ideas to life — but rather the pride, passion and energy he takes and puts forth in the responsibility of accounting for another’s goods.

packaging

Is Your Furniture Packaging Optimized?

The world of furniture packaging has transformed as more companies rid their business of shipping products full truckload (FTL). The more frequent method of shipping has transitioned to less than truckload (LTL) for assembled furniture or small parcel for ready to assemble furniture. This change in supply chain has a direct impact on the packaging required to survive shipping without product damage.

Listed below are the four steps we take at BoldtSmith Packaging with projects specific to optimizing the packaging for furniture.

Know your Supply Chain

The first step in developing a packaging solution is understanding the supply chain in which your product is shipped through. This directly impacts the packaging design and testing protocols required to verify a concept. A product shipping full truck load (FTL) on a company’s existing fleet in comparison to less than truckload (LTL) requires completely different packaging solutions. Too often do we see a customer using the same concept that works shipping FTL but is damaged in an LTL environment and the blame is put on the carrier. This same concept applies to small parcel ready to assemble furniture packaging.

A few questions that are helpful when evaluating a supply chain are outlined below

-How is the product stored and handled internally prior to shipment?

-What machinery is used to transport the packaged product?

-Fork truck? Hand truck? Clamp truck?

-If palletized, does the pallet allow for the available machinery to be utilized without special attachments or modifications?

Example: Fork truck tine extensions

-How many hubs will the packaged products go through if shipping LTL?

-What hazards are to be expected during shipping and handling?

-Vehicle vibration, forklift handling, horizontal and vertical impacts, drivers clipping curb, etc

These questions are often best answered by the way BoldtSmith Packaging approaches projects like this. Boots on the ground. We believe in observing the supply chain first hand. For this reason, often our first step in projects is going through the supply chain finding the answers to these questions.

Design to Survive

Now that we have an understanding of how the product and packaging will be shipped and handled, we can design packaging to survive these hazards. For example, ready to assemble furniture products getting damaged during small parcel shipping from corner drops require a company different solution than that same product experiencing scratching due to vibration.

For this reason, we typically provide multiple packaging designs ranging in protective capabilities and material, freight, and labor costs. This gives our customers the information required to make informed decisions as to which design works best for their specific needs.

Exploring a variety of packaging designs and materials requires internal design and sampling capabilities. BoldtSmith Packaging has a team of packaging engineer’s to complete designs internally which allows us to remove packaging manufacturer’s from the design process. Our customers then own the packaging specifications and can send them to multiple packaging suppliers for competitive bids. This vital for both domestically manufactured furniture and overseas.

After multiple designs are created, we then proceed with making samples internally. Whether that is utilizing our CNC machine specifically made for corrugated and foam or building a crate in our wood shop. Samples are then tested to verify they can survive the intended hazards.

Test to Verify

The testing portion of the project is so critical as it provides the data needed to prove the designs can survive the supply chain. An interesting point is we often discover companies pass testing and then consider that the completion of the project. For BoldtSmith Packaging, that is often just the mid-point of the project.

Our goal is to provide customers the best possible packaging. This means testing the product and packaging to failure. Once we reach failure, we can redesign and pass testing but unless we fail testing, we will not know where the pass/fail line is. For example, if we are utilizing a 3”, #2 lb density EPS foam and passed testing. Are we able to still pass testing utilizing a 2.5”, #2 lb density EPS foam? If the answer is yes, then we continue reducing the foam thickness until we fail. When we fail, we then explore alternate foam density’s or materials.

The test however for this concept to work as intended must replicate the hazards the product and packaging actually experience during shipping. This is another reason why step 1 of understanding the supply chain is so critical.

Track Progress

After the optimized design has been implemented, the project still has one remaining step. Data must continue to be gathered to track damage. Packaging optimization is best understood as a continuous process. Customer feedback should be gathered in a specific and data-driven manner. If a product becomes damaged during shipping, below are a few examples of information that would need to be acquired.

-Pictures and a description of the damage

-Location of the customer (Domestic, Overseas, etc.)

-Hard costs associated with the damage

-Hard costs include product, packaging, freight, labor costs, etc.

-Soft costs associated with the damage

-Soft costs include logistics associated with a damage claim, loss of sales, reputation, etc.

-Percentage of damage incidents relative to the number of shipments

The questions relevant to the customer providing the information must be gathered in a consistent manner. We recommend having an online portal or feedback form that instructs the customer on what information is needed. This allows for cataloging the information so it can be tracked and analyzed.

Whether the furniture you are shipping is fully assembled going through an LTL supply chain or a knock-down furniture kit shipping small parcel, BoldtSmith Packaging has the experience and resources to provide optimized packaging solutions.

This article originally appeared here. Republished with permission.

containers

CONTAINER SHORTAGES EASE AT CHINESE BOX HUBS POST-CNY

After months of crippling shortages, container availability is finally improving again in China, according to Container xChange’s Container Availability Index (CAx).

The CAx reading of incoming containers across Chinese main ports is currently up 56% compared to before the Chinese New Year (CNY) holidays which started on February 11.

At Shanghai, the biggest Chinese box port, the CAx has increased 64% for 20 ft. dry containers when comparing pre-and post-CNY container availability.

For 40 ft. dry containers, the increase is even starker, with box availability improving 112% over the same period.

Dr. Johannes Schlingmeier, CEO & Founder of the container leasing and trading platform Container xChange, commented:

“Trade traditionally slows down in China for an extended period during and after the Chinese New Year holidays as factory workers travel to visit families and output drops. Most data suggest Covid travel restrictions and high demand for exports meant that many factories continued operations. But it seems the drop off in output, even if less than normal, was enough to allow the container supply/demand imbalance to reduce.”

In the Container xChange Container Availability Index (CAx), an index reading of below 0.5 means more containers leave a port compared to the number entered. Above 0.5 means more containers are entering the port.

“One week of index values greater than 0.5 does not mean so much but exceeding the 0.5 marks for several weeks in a row like Shanghai and other main ports in China have done means that finally more containers are entering ports regularly, giving them the chance allow the container supply/demand imbalance to reduce,” said Schlingmeier.

For exporters who continue to struggle with finding the right equipment, other Chinese ports such as Qingdao, Dalian, and Ningbo are great alternatives to Shanghai.

Chart 2: Container Availability Index for 40 ft. dry-containers and 20ft. dry-containers in Dalian and Ningbo

Dalian, with the highest equipment availability of the three ports, shows the highest post-CNY index values with 0.79 for 20ft dry containers and 0.80 for 40 ft dry containers – up 17% and 27%, respectively, since the pre-CNY period.

At Qingdao, 20 ft. dry and 40 ft. post-CNY container availability readings on the CAx are 0.64 and 0.65, up from 0.42 and 0.39 during the pre-CNY period.

Container prices confirm the positive trend. After record highs for used container boxes in January of $5593 for cargo-worthy containers, prices fell to $3750 in February.

“These prices are still far higher than buyers usually pay for newly built containers, but this is still good news for companies who export from China,” said Schlingmeier.

“With so many supply chain disruptions still evident, we expect container availability in China and elsewhere to remain volatile. But thus far in 2021, there are positive signs that availability at key export hubs is improving.”

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About the Container Availability Index:

The Container Availability Index tracks millions of monthly container moves to monitor and forecast the global container equipment supply. An index of 0.5 describes a balanced market, below 0.5 a shortage of containers. For more information and weekly email updates, check out https://container-xchange.com/features/cax/

About Container xChange:

Container xChange is the world’s leading online platform used by 600+ companies to buy, sell and lease shipping containers. Container users and owners use the platform to find containers, work with vetted partners and automate the operational workload. Started by Dr. Johannes Schlingmeier and Christian Roeloffs in 2017, the company has now more than 100+ employees with headquarters in Hamburg, Germany. https://container-xchange.com/

digital procurement

Is Digital Procurement Needed for Businesses to Stay Competitive?

Digital procurement is yet another avenue in which logistics businesses are moving forward, and those that have elected not to make the upgrade may find themselves left behind. When a business makes the transition to complete digital procurement, they make available a wide variety of advantages.

At its core, digital procurement automates repetitive tasks, boosts efficiency, and lowers costs. In addition to that, it produces a wealth of useful data, with real-time insights and analytics that are intuitive for users to access and make use of, and makes day-to-day operations and decision-making more informed thanks to accurate and informative data models.

Digital procurement leverages pricing, matching, and ranking algorithms across vast amounts of capacity data to efficiently distribute load opportunities to carriers. On top of that, it is extremely fast and utilizes data to more efficiently connect carriers with available freight.

Understanding traditional procurement

Procurement as a concept can be difficult to fully explain and understand. While an essential process for any business, it can often be confused with purchasing or sourcing, which while similar, are separate functions. Of the three, procurement has the broadest application and responsibility.

While purchasing is a direct process of exchanging goods for money, procurement- particularly when made digital- has the ability to serve as a platform for collaboration between buyers, suppliers, and third parties. The common wisdom at this point is not if a business should go digital in their procurement processes, but when they will need to in order to stay competitive.

Traditional procurement ultimately involves manually matching available truck capacity (usually identified through phone calls) to available freight. The process is manual for both the carrier and the brokerage rep, time-consuming, and draws on a more limited pool of carriers.

Benefits of digital procurement

As with many digital upgrades, once users have had access to the smoother experiences associated with upgraded technology, they embrace it. Digital procurement allows bots to automate and streamline processes that are routine and time-consuming.

With an interface that allows buying agents and advisors to make optimal purchasing choices, businesses receive peak value on the backend.  The myriad benefits associated with adding digital procurement to your business strategy include greater job ease and satisfaction for procurement officers, automation of tedious tasks that free up employees for better efficiency, and significant return on investment.

Adding digital procurement may be expensive upfront, but once successfully integrated, utilization creates a significant reduction in costs and an increase in profits. For businesses weathering the tumultuous markets of a post-COVID world, any opportunity for cost reduction and increased profitability is a no-brainer.

Facing the challenges

When considering what challenges businesses in this currently rapidly fluctuating market face, better forecasting models and visibility are key components in the decision-making that will allow them to remain competitive. Digital procurement has a role to play here. Digital procurement includes visibility features that give procurement officers and business owners actionable insights into their processes.

The supply chain is extremely stressed right now from high demand in the market. As a result, routing guides are failing for shippers, and price inflation from going to the spot market is eating into shippers’ budgets. Additional work and stress are being placed on transportation managers to navigate failing routing guides and insulate themselves from expensive transactional capacity.

A tech-forward approach helps solve these problems for shippers by delivering real-time rate insights and capacity. Shippers can quickly and confidently source capacity on any overflow freight in their network.

With detailed information more readily accessible and easy to understand, they are now better equipped with the tools they need to forecast potential demand paths and create action plans that will be most profitable and beneficial to the business overall. Armed with increased data and automation, businesses will find themselves much more agile and flexible in response to changing markets.

In addition, a completely digital system can be more easily updated and changes across platforms more rapidly implemented without the need to wade through a variety of piles of old-school record-keeping. Distributing information across the business becomes a simple process.

A more streamlined system

Finally, digital procurement allows for the streamlining of processes. A buzzword constantly heard in the ever-upgrading world of business processes, a streamlined system is by its very nature more efficient and less expensive. Faster results, smoother transitions and transfers of information, less time spent on tedium and repetitive processes, as well as AI accuracy that prevents costly errors prior to their occurrence. All of these aspects mean digital procurement saves time and money by streamlining.

Shippers can streamline their transportation planning process and achieve high levels of productivity with a more connected supply chain strategy. In addition, higher levels of rate control can be managed once rates are delivered into the TMS they are using instead of getting lost in emails and spreadsheets.

Recognizing the value of a digital transition as early as possible will keep your business in line with the curve, rather than behind it. While there may be some adoption reluctance, analog methods could leave your business in the dust if your competition has already taken the digital leap forward into the future.

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Michael Johnson is the Executive Vice President of Strategy at Redwood Logistics. Redwood, a leading logistics platform company headquartered in Chicago, has provided solutions for moving and managing freight for more than 18 years. The company’s diverse portfolio includes digital freight brokerage, flexible freight management, and innovative platform services that simplify integrating disparate supply chain technology. Redwood Logistics connects its distinct roster of customers to the power of supply chain management, technology, and the industry’s brightest minds. For more information, please visit www.redwoodlogistics.com.

duty drawback

New Customs Duty Drawback Refund Program Helps Mitigate the Impact of China Tariffs

The Trade Facilitation and Enforcement Act of 2016 (known by its acronym TFTEA) profoundly liberalized the unique tariff mitigation strategy commonly referred to as duty drawback refunds. This represented the culmination of a nearly 12-year collaboration effort between the Drawback Trade Community and Customs and Border Protection in an effort to modernize the drawback refund program to make this valuable export incentive program more accessible to U.S. Business.

The duty drawback law originally enacted in 1789 by the first U.S. Congress allows for the refund of Customs duties on imported merchandise subsequently exported from the U.S. either in the same form or following a manufacturing process.

As an example, a producer of eyewear in China imports sunglasses into its distribution facility located in the U.S. at a duty rate of 2.5%. Eighty percent of the glasses are sold in its stores in the U.S. but twenty percent are exported to its stores in Canada and Latin America. Upon reexport to Canada and Latin America, the eyewear company is eligible for a refund of the 2.5% regular duty and if applicable, the 25% China tariff.

The implementation of the new drawback program in 2018 could not have been timelier as it coincided with the Trump Administration’s decision to levy 25% punitive tariffs on nearly $400  billion in value on imports from China. The purpose of the tariff was an effort to balance a massive trade deficit, address a variety of alleged unfair trade practices by Beijing, and benefit American manufactures, and by extension, U.S. factory workers.

One major electronics company we represent went from paying under a few million a year in duty to nearly $50 million following the impositions of the China Tariffs. The duty drawback program will allow them to recapture nearly $20 million in duties thus substantially reducing the cost impact of the tariff. Another alcohol company we work with withstands to recover nearly $15 million in federal excise tax (also eligible for a refund via the drawback program in addition to duties and tariffs). They are taking advantage of the drawback program that allows not only for the refund of future imports and exports but provides refunds on duties associated with 5 years of historical activity!

The imposition of these massive tariff increases disrupted supply chains as it sent U.S. importers scrambling for compliant strategies to mitigate the additional 25% cost on much of the import activity from China. Selecting the correct strategy for U.S. importers among a number of options was further complicated by one primary unknown variable – how long would the tariffs last? In addition to duty drawback refunds, U.S. businesses evaluated many strategies that included petitioning the Trump Administration for product exclusions, shifting supply chains to source products from outside of China, adjustments to classification/valuation, foreign trade zones, and bonded warehouses.

The duty drawback program with its minimal start-up costs and with no disruption to existing product flows and supply chains offers significant advantages to other tariff mitigation strategies but is limited to those companies with significant export volumes from the United States. Companies that only import into the U.S. with no offsetting export volume, are better served by other compliant tariff minimization methods.

Understanding the Drawback Substitution Methodology  

The new drawback law substantially liberalized the substitution rules to allow more flexibility when matching import and export activity for drawback purposes. Understanding how substitution works is key to determining a company’s recovery potential. The substitution method allows a drawback claimant to match “like” merchandise instead of directly linking an export back to the original importation using lot number or serial number tracing. Under the previous substitution drawback rules prior to the 2018 amendment of the law, the imported and exported merchandise needed to share the same material code and/or product specifications. With the new rules implemented in 2018, the import and the export need only share the same tariff classification number at either the 8th or the 10th digit of the HTS number.

As an example, under the previous drawback regime, a U.S. importer and exporter of orange juice would need to match on the basis of grade and specification. Since many Florida orange juice distributors source juices from multiple countries including Mexico and Brazil (two of the world’s largest producers of OJ) in addition to procuring domestic juice, the exported juice and the imported juice needed to be commercially interchangeable in the marketplace, a very narrowly defined standard. Today, the same company can match export Florida grade A juice and reclaim the duty assessed on imported Brazilian Grade B juice because both fall under the same general tariff classification – grade, specification, or material code are no longer relevant.

The liberalization of this substitution standard places additional recovery on the table for a number of industries while simplifying the process of preparing drawback claims. Returning to the example of sunglasses, the eyewear company could now export a pair of U.S.-made sunglasses and offset the duty paid on imported glasses from China. In the case of beer, there is only one harmonized tariff classification for beer, so an exported Coors light would be interchangeable with Molson beer imported from Canada.

The first step in the drawback process is to conduct a thorough evaluation of a company’s drawback potential both for the past five years as well as moving forward. As the saying goes, a company must first determine if the “juice is worth the squeeze.” For many large importers/exporters, the answer is a resounding “yes”, and given the opportunity for retroactive recovery, the first-year refunds can provide a significant boost to the bottom-line while assisting many importers in reducing the impact of the Trump tariffs.

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Anthony Nogueras, the founder and current CEO of Alliance Drawback Services, brings nearly 30 years of drawback specific experience to Alliance’s  extensive list of clients that includes many Fortune 500 firms. In 2020, Alliance cumulative drawback filings exceeded $100 million in drawback refunds.

During his extensive career as a drawback specialist, he has spoken on drawback matters before a host of organizations including National Associations of Purchase Managers, The Juice Products Association and  the International Titanium Association in addition to many international trade organizations.    He has also been published in the Journal of Commerce, and numerous other trade industry publications.

Mr. Nogueras drawback experience includes the management of drawback accounts in a variety of industries including retail, petrochemicals, metals, and agricultural products.  In 1989 he graduated with high honors from San Francisco State University with a bachelor’s degree in International Relations and Economics.  He is also a Licensed Customs Broker.

agent

Process Agents and Why it Pays for Exporters to Stick to Processes

Picture the scene. Everyone’s happy with the commercials. Several drafts of the contract have been reviewed. The goods are already being prepared to meet the client’s near-impossible deadlines. At the last minute, the client’s general counsel refuses to sign the contract because there’s no process agent. You scratch your head and google: “what’s a process agent?”. Don’t worry, you’re not alone.

In some transactions, the term can come up early on when signing a non-disclosure agreement. But for many exporters, the first time they hear the term is at the contract stage when dealing with a larger buyer. It is often the final hurdle before the contract can be signed. We look at what exporters need to know about process agents, also known as agents for service of process or resident agents. Even if you have heard of the term before, the team at Elemental CoSec shares a lesser-known provision that could save your firm thousands of dollars a year.

What is a process agent?

Let’s say a US firm, with no UK presence, is supplying goods to England. If the buying firm needed to make a legal claim in the future they would have to file papers in the US. Clearly, this is time-consuming and fraught with difficulties and would put many buyers off. Fortunately, there is a provision in the UK civil procedure rules that allows the US supplier to appoint a process agent upon whom court papers may be served (if the contract is under the laws of England and Wales). A clause would then be added to the contract stating who the process agent is and their address details. This doesn’t just apply to the UK and many international countries will rely on the English Court system.

How to appoint a process agent

Appointing a process agent is a lot like trying to choose an insurance provider. There are seemingly loads of options online, they all seem to offer the same thing and you only really find out how good they are when things go wrong. Here are a few things to consider when appointing a process agent and how to read the small print.

Responsive – It will be the role of the process agent to receive communication on your behalf and to forward this to you as soon as possible. Check to see how responsive they are to your initial inquiry. If it takes too long, it’s not a great sign.

Reliability – The process agent service needs to be in place for the duration of the contract. Look to see how long they have been trading for. Though it is possible to add a contract clause in the event they stop trading this would put the onus on you to check their status and appoint a new one if anything were to happen.

Requirements – find out exactly what information your contracting party requires from the process agent to satisfy their requirements. In some circumstances, they may even have a specific format for the appointment letter.

Changes – ensure you keep the details of the process agent to hand, we recommend appending these to the contract and notifying the personnel responsible for corporate secretarial duties internally. If your company address changes, you should notify the process agent.

Fees – Finally, as an infrequent and sometimes last-minute purchase, this is often where buyers can get caught out. Check to see if process agents charge extra for multiple appointments. It is also worth checking what happens upon renewal, including if there is a renewal discount.

Global appointments

If you have appointed a process agent in the past or for firms that enter multiple agreements, you could be missing out on a way to save thousands of dollars a year by using a global appointment. A global appointment is one process agent service to cover all your English law contracts, anywhere in the world. To find out more about global appointments or other frequently asked process agent questions visit Elemental CoSec’s UK process agent page.