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Which Items are Prohibited in Shipping Containers

shipping containers
Archives, Global Shippers 101, Global Trade Daily

Which Items are Prohibited in Shipping Containers

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While shipping undeniably makes the relocation process much easier and significantly less complicated, the shipping practices do have some restrictions. It is extremely important to be well-informed on what items are prohibited in shipping containers, so as not to encounter any difficulties, delays, or serious problems in your attempt to bring this process to end successfully. Bear in mind that each and every container is inspected in detail prior to shipping. Thus, do not try to ignore the strict regulations regarding the prohibited items in containers. 

To help you handle the whole process with ease and without any potential inconveniences, we have made a comprehensive list that can eliminate your dilemma and clear away all your doubts on what items are prohibited in shipping containers. Having studied these closely, you can start orchestrating the shipping operation and commence a search for ways to negotiate better shipping terms.

Flammable and toxic items

Flammable and toxic items are on the top position of our list for understandable reasons. These items can considerably harm not only the belongings within the shipping container but the whole shipment as well. While some of these are easy to identify, others come as a surprise. Hence, it is always a good strategy to obtain information on allowables and non-allowables from your shipping company.

The flammable and toxic items you are to avoid putting in a shipping container are batteries of all types, aerosols, household cleaners and solvents, nail polish and nail polish remover, fireworks, various chemicals, oils, fertilizers, and similar. The list is extensively long, so once again we need to emphasize the necessity of consulting your shipping company and relevant institutions on this point. Only this way will you get peace of mind and confirmation that none of your items are among non-allowables.

Plants and animals

There are numerous pros of maritime shipping, but being able to ship animals and plants is not one of them by any means. Although it does not take too much thinking to understand the reason behind this, there are still those who are willing to give this option a try nevertheless. Understandably, the outcome of such a decision always includes severe consequences. Namely, no living being is able to survive a few-day shipping in a firmly closed shipping container without light or fresh air. Moreover, some countries have very strict regulations regarding bringing non-native plants to their territory. Apparently, they feel threatened by plants and seeds potentially infected with dangerous parasites and germs. Eventually, these might affect and endanger their existing vegetation. While it is true that this may sound like an exaggeration, we cannot deny that it is still possible.  

Illegal items 

Even though certain types of items are illegal all over the world, a lot of countries have their own regulations that define legal and illegal items in shipping terms. To avoid any problems and complications, gather enough information on this point.  

Generally, firearms, ammunition, drugs, and some medications definitely need to be mentioned when discussing what items are prohibited in shipping containers. An immense number of countries have strict laws regarding bringing weapons and ammunition across their borders and these need to be obeyed at all times. 

Perishables are prohibited in shipping containers

Although the shipping industry is intensely working on automation that will change the pace for shipping operations, it is still common for containers to be placed in storage for some time until the shipping is finally scheduled. This period is more than enough for perishables to spoil and even damage some of your belongings in the container. Hence, items that are forbidden in these containers include fresh produce, frozen and refrigerated food, and any food containers that have been opened and cannot be firmly closed anymore. 

Items that are not prohibited but yet should not be in shipping containers

Besides the items which are not acceptable because they are hazardous and potentially harmful, there are those which are not prohibited but yet should not be in shipping containers.  These usually have either high material or emotional value and are, most often, considered irreplaceable for the owner. Concerning the period of time these would have to spend in a container, it is a reasonable choice not to go for this option. Otherwise, you risk damaging, losing, or even completely destroying these items irrevocably.

Hence, all the important business or personal documents, jewelry, family albums, money, computer disks and laptops, keys, and cell phones should be kept at hand and not exposed to the risk of being shipped in a container. Depending on their number, these could easily be packed in the essentials bag or box you will take with you.

Conclusion

Knowing what items are prohibited in shipping containers is of utter importance for the success of the shipping process. Should you disobey the restrictions regarding this, you risk going through some major difficulties. In other words, your shipment may be delayed or even canceled. Hence, it is advisable to get all the necessary information and do some research prior to sending your shipping container overseas. This is the only approach to this task that guarantees a positive, completely problem- and stress-free experience.

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David Nelson had worked in the shipping industry quite sometime before he became a copywriter. He has decided to share his knowledge and experience with all those who seek advice in this field. David also follows the latest trends and can provide the necessary information to make any shipping process easy to conduct, be it a part of a relocation or a try to import cargo from Japan with ease, for example. Unsurprisingly, when he is not writing, David is traveling around the globe and exploring new areas. He is a passionate globetrotter indeed.

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Archives, Global Shippers 101, Global Trade Daily

Five Important Ways to Negotiate Better Shipping Terms

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The final price of your product or service depends on a wide range of factors. Shrewd people in business know there is more to making profits than keeping your buying price low and selling price high. Additional business expenses can reduce your final margin. These include shipping, marketing, storage, and a range of legal expenses.

Negotiating a low price from your manufacturers is just the beginning. Supply chain negotiation training seminars can teach you several ways to gain value before your products reach your customers.

The shipping industry can offer you notable savings opportunities. To identify these, you have to have a keen eye. In this article, we look at five ways you can apply negotiation training skills to obtain better shipping rates.

Understand the Shipping Terms

Global trade has thrived on the back of shipping and logistics companies for hundreds of years. As a result, the shipping industry has developed a unique culture and language. Whether you are dealing with local or multinational shipping companies, there is a range of terms that you should know.

Terms such as CIF (Cost, Insurance, and Freight) and FOB (Free on Board) are used freely in the shipping industry. If you are new to the business, you can learn shipping terms by attending a seminar on the essentials. If you don’t understand the industry’s regular terms, you risk making a deal that can be negative for your business. 

Negotiation training seminars can teach you how to prepare before sitting down to make a deal. You can improve your position by researching the industry before meeting companies. Also, you can carry out mock discussions with shipping company agents. This can give you a feel of the language and questions that may come up during a real negotiation.

Research Possible Hidden Costs

One of the things that can diminish your profits is hidden logistics costs. The final price for your products should factor in all the costs you expect to incur before delivery. Talking to the different authorities that can come into contact with your products in transit can clarify your overall costs. Knowing the factors affecting your shipping rates can help you negotiate to reduce hidden costs.

By working closely with your shipping company, you can identify smart ways to cut down your costs. Many companies have different shipping rates based on weight as well as box dimensions. If you use the standard boxes the shipping company provides, you can save a few dollars on each load.

Develop Your Negotiation Strategy

Once you have understood the market and options available, negotiation training can help you plan your strategy. Writing down your strategy and goals can give you an overview of the entire process. The points listed below are some of the elements taught in negotiations seminars that can help to strengthen your strategy.

Budget

Based on your business model, you should have a price you are not willing to go above. Your strategy should include the ideal and maximum price you are willing to offer for the shipping service.

BATNA

A BATNA is your Best Alternative to a Negotiated Agreement. It refers to a set of alternative options you can take if you cannot reach a viable deal in your negotiations. A well-planned BATNA can help you to recognize a bad deal and give you the confidence to walk away.

Timelines

Time constraints can have a significant impact on your negotiations strategy. The earlier you start discussions with shipping companies, the less pressure you will have to close a deal. Beginning your negotiations early can give you more time to reach a mutually beneficial agreement.

The Urgency of Delivery

Your strategy should state how fast you need the products to be delivered once ordered. Same day deliveries often cost more than two or three days of delivery. The delivery time constraints depend on the nature of your products and promises made to your customers.

Payment Terms

Although one-off payment offers come with attractive discounts, they can also be quite risky. Making payments in installments is safer and keeps the shipping company committed until the final payment. Offer well-balanced payment terms that enable your shipping company to deliver your products on time while limiting your financial risk.

Concessions

Well-trained negotiators plan the concessions they are willing to give before discussions begin. In your research, find concessions that can create value for the shipping company and present them in your meeting. The negotiation process can become very challenging if you are too rigid.

Use Third Party Logistics Providers (3PL)

According to the World Shipping Council, the intermodal shipping network plays a significant role in the cost and rate of service delivery. An intermodal network is made up of ships, airplanes, trucks, and trains. The connection points where cargo is transferred between modes of transport are also part of the network. Many companies depend on intermodal networks for the inland dispersal of cargo from harbors and airports.

Third Party Logistics Providers (3PL) provide a useful service by shipping your cargo via their own intermodal networks. A trusted 3PL provider can save you time and money while allowing you to focus on your core business.

3PLs allow you to negotiate with one service provider who can manage all the regulatory and intermodal networking issues you may face. Further, your 3PL can help you connect and share shipping costs with other dealers in your vicinity.

Negotiate with Other Shipping Companies

Before signing off on a deal, make sure you have exhausted your other options. If you only deal with one shipping company, you may miss a better option. In a comprehensive negotiation seminar, you can learn how to leverage competitive bids to secure better deals.

Additionally, training to negotiate with multiple companies feeds into your research. It teaches you more about the existing challenges in the shipping industry. The knowledge you acquire can help you create value as you deal with the shipping companies.

Round-Up

The shipping industry presents smart people in business with a wide array of chances to negotiate better deals. The techniques in this article are not exhaustive. However, they can set you on the right track and feed into your strategy.

Negotiation training seminars are designed to maximize your potential and spur you into action. However, there is no strict rule book that is applicable in every case. As you grow in business, you can develop your own strategies based on your training and personal preferences.

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Archives, Global Trade Daily, Ocean Carriers

A Tough Year on the Water Hasn’t Dampened Innovation for these Ocean Carriers

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To say that 2019 has been challenging for ocean carriers would be an understatement. The year began with the National Retail Federation forecasting a decline in year-over-year growth, echoing World Bank chatter of a slowing global economy.

And don’t forget the tariff wars between the U.S. and China (heck, the U.S. and just about anyone). Managing capacity on ships has also been an issue, and then there is the potential biggest bogeyman of all: the International Maritime Organization’s low-sulfur fuel mandate taking effect Jan. 1, 2020.

Sure, we could dwell on the gloom and doom, but that would not be very Global Trade magazine of us, now would it? We here in our silky ivory tower like to spotlight the positive, which we reveal with these ocean shippers we love.

MSC

Mediterranean Shipping Co. this year watched the world’s largest container ship, the MSC Gülsün, complete its maiden voyage from northern China to Europe. With a width of 197 feet and a length of 1,312 feet (!), the Gülsün was built by Samsung Heavy Industries at the Geoje shipyard in South Korea. It can carry up to 23,756 TEUs shipping containers on one haul. That capacity can include 2,000 refrigerated containers for shipping food, beverages, pharmaceuticals or any other chilled and frozen cargoes. That’s a lot of snow cones!

MOL

Mitsui O.S.K. Lines sees MSC Gülsün and raises you the MOL Triumph, which achieved a new world load record this year. Departing Singapore for Northern Europe on THE Alliance’s FE2 service with a cargo of 19,190 TEU. That surpassed the previous load record achieved in August 2018, when Mumbai Maersk sailed from Tanjung Pelepas to Rotterdam with 19,038 TEU onboard. Yes, you are correct, that’s a pretty slim margin of victory, and analysts suspect the MOL Triumph record won’t last long given the 23,000 TEU ships being introduced.

HYUNDAI MERCHANT MARINE 

Speaking of THE Alliance, current members Hapag-Lloyd, ONE and Yang Ming will be joined in April 2020 by Hyundai Merchant Marine (HMM). The South Korean carrier recently signed an agreement to join THE Alliance and then passed the pen to the founding members, who extended the duration of their collaboration until 2030. “HMM is a great fit for THE Alliance as it will provide a number of new and modern vessels, which will help us to deliver better quality and be more efficient,” said Rolf Habben Jansen, Hapag-Lloyd’s chief executive. 

HAPAG-LLOYD

Oh, speaking of the fifth-largest container shipping company in the world, Hapag-Lloyd is piloting an online insurance product as part of a digital offering to try to overcome the widespread practice of shippers relying on the limited cover provided under the terms of carriers’ bills of lading. While Hapag-Lloyd says it takes the utmost care in transporting cargo, company officials acknowledge things can and have gone wrong. Thus, the introduction of Quick Cargo Insurance, which is underwritten by industrial insurer Chubb in Germany and is limited to containerized exports from that country, France and the Netherlands. However, the carrier says it plans to expand the offer.  

MAERSK

To navigate new environmental regulations, A.P. Moller-Maersk A/S is considering going old school. We mean really old school by using a modern version of the old-fashioned sail to help power its ships. Currently being tested on one of Maersk’s giant tankers, the sails look less like the flapping silk you know from Johnny Depp movies and Jerry Seinfeld’s puffy shirt and more like huge marble columns. But they are nothing to laugh at as two 10-story-tall cylinders can harness enough wind to replace 20 percent of the ship’s fossil fuels, according to their maker, Norsepower Oy Ltd. 

MOL, THE SEQUEL

While we’re getting all green up in here, it’s worth also pointing out that Mitsui O.S.K. Lines Ltd. This year joined three other Japanese companies— Asahi Tanker Co., Exeno Yamamizu Corp., and Mitsubishi Corp.—in teaming up to build the world’s first zero-emission tanker by mid-2021. Their joint venture e5 Lab Inc. will power the vessel with large-capacity batteries and operate in Tokyo Bay, according to a statement the foursome released on Aug. 6. Thanks to the onslaught of legislation to improve environmental performance, other companies are also looking to battery power. Norway’s Kongsberg Gruppen is developing an electric container vessel, and Rolls-Royce Holdings last year that started offering battery-powered ship engines.

AMAZON

No, this is not a leftover strand from a different story in this magazine about moving packages on the ground. “Quietly and below the radar,” USA Today recently reported, “Amazon has been ramping up its ocean shipping service, sending close to 4.7 million cartons of consumers goods from China to the United States over the past year, records show.” While other ocean carrier leaders prepare for the bald head of Jeff Bezos, his move really should be no surprise given Amazon’s attempt to control as much of its transportation network as possible. (See my September-October issue story “Air War: Fast, Free Shipping has UPS, FedEx and Amazon Scrambling in the Air”). Of Amazon now floating into the sea, Steve Ferreira, CEO of Ocean Audit, a company that utilizes data and machine learning to find ocean freight refunds for the Fortune 500, told USA Today: “This makes them the only e-commerce company that is able to do the whole transaction from end-to-end. Amazon now has a closed ecosystem.” 

TMS
Archives, Global Logistics, Global Trade Daily

Signs You’re Ready for a Transportation Management System and What to Look For in Finding the Right One

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The transportation management system (TMS) market is growing globally, and for good reason. Common objectives like controlling costs, establishing internal efficiencies and managing capacity restrictions have established the need for technology that provides uninterrupted visibility across the supply chain and helps streamline operations.

In fact, in Gartner’s first Market Guide for Real-Time Visibility Providers, published November 2018, supply chain leaders surveyed for the report ranked visibility as the highest priority in the supply chain.

But it’s not simply a given.

Especially in today’s volatile global trade climate, having a TMS in place can ease the burden on transportation leaders to ensure goods get to their destination on time without crippling costs. The modern supply chain requires the flexibility and scalability provided by transportation management systems.

Knowing when a TMS is right for your business

A growing business means more robust transportation needs. Being equipped to manage the increased volume and complexity is crucial, especially as you onboard new customers, some of which likely have strict retail compliance policies that can result in fines and penalties for not following suit.

Greater complexity in your transportation needs also means the need for greater visibility. If you can’t confidently say you know where all of your shipments are at a given time, it’s time to consider a TMS. Implementing a TMS arms your business with visibility and provides the real-time information needed to also keep customers informed. That access to real time data and insight is not merely a nice to have, as it was in the past. With trade volatility on the rise, the ability to stay informed and to make quick pivots is imperative. Those who can accurately see the whole picture at the click of a button will surpass the competition as they rush to make less informed decisions.

In addition to business growth and the complexity that comes with it, a TMS is an especially crucial tool to have in place if your business is considering M&A activity. As shippers are suddenly faced with the myriad challenges that comes with integrating disparate systems, having a TMS in place serves as a binding source for systems and data.

I know I need a solution. What now?

TMS solutions have become more robust and powerful over time while also decreasing in price. This has made them more accessible to companies of all sizes, especially given the ability to get them up and running quickly thanks to cloud-based software.

A few questions to consider as you think about which kind of TMS to purchase are: What key pain points am I hoping to address? Do I want a standalone TMS solution or a TMS and a 3PL that can I partner with to manage my logistics needs? And how do I ensure disparate systems are cohesively integrated?

Businesses will commonly implement a TMS to increase supply chain visibility and operational efficiency, integrate disparate and/or legacy systems, optimize costs and have access to detailed analytics and reporting. To achieve these goals, you’ll want a solution that includes the following:

-End-to-end automation and dynamic collaboration so you can seamlessly manage your entire supply network, across all modes;

-Detailed shipment visibility providing insight around pricing and load management to ensure your shipments are delivered on time and on budget;

-Actionable business intelligence and analytics that can provide the immediate insight needed to make better shipping decisions;

-A healthy carrier network of local, regional, and national multimodal carriers to provide services on a shipment-by-shipment basis or dedicated lane opportunities. If you opt for a managed TMS, your provider can help you pinpoint more efficient routes, cost reductions and opportunities to explore new markets versus needing to do that work internally.

As transportation management technology has advanced in recent years, the price of transportation management systems has dropped, offering businesses of all sizes the opportunity to take advantage of the myriad benefits. From providing an unprecedented level of visibility to compelling opportunities for cost savings and increasing operational efficiency, the decision to adopt a TMS in today’s uncertain global trade environment should be an easy one.

Ross Spanier is senior vice president of operations at GlobalTranz, a leading technology and third-party logistics solutions company providing award-winning Transportation Management System (TMS) products to shippers, logistics service providers and carriers.

3pls, Archives, Global Trade Daily

5 Tips on Obtaining the Right Logistics Company

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

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

Logistics company capability

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

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

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

Customer Service

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

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

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

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

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

Safety and protection offered

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

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

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

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

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

Suiting your needs

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

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

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

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

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

Real-time data and tracking

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

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

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

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

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

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

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Archives, Global Trade Daily, News

UPS & CVS Pharmacy Collaborate for Customer Convenience

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CVS customers now have the added convenience of utilizing recently expanded in-store UPS package pick-up and delivery options. UPS confirmed earlier this week that more than 6,000 CVS Pharmacy stores around the country will offer the service which was confirmed to roll out immediately.

“This deal offers additional convenience to consumers in the e-commerce era,” said Kevin Warren, UPS’s chief marketing officer. “Working with CVS Pharmacy demonstrates our commitment to increased customer choice and control with our global UPS My Choice® network.”

The collaboration directly impacts both companies, as it not only brings added traffic to nationwide CVS Pharmacy locations, but also provide the added option of trip consolidation for UPS customers seeking an all-in-one shopping experience.

“We will continue to bring our customers new omni channel services and experiences that redefine convenience and make it easier to meet the demands of their increasingly busy lives,” said Kevin Hourican, Executive Vice President, CVS Health and President, CVS Pharmacy. “Adding UPS Access Point locations at CVS Pharmacy locations offers added convenience in local communities throughout the country for shipping and safely receiving packages.”

By adding more locations for customers seeking convenient shipping options, UPS also adds to the UPS Access Point locations, which currently boasts more than 40,000 and 38,000 drop-boxes globally. Additionally, the collaboration impacts over 60 million UPS My Choice Program members currently customizing shipping needs. These members have direct access to the extended UPS network to for estimated arrival and progress alerts, sign for a package in advance, set vacation holds, and more.

“Until now, the UPS Access Point locations have largely been local businesses and The UPS Store® locations. With this announcement, UPS broadens our services to offer an enviable network of secure choices to busy shoppers,” Warren said. “Consumers now have access to a vast and robust suite of options that include the CVS locations, neighborhood businesses, lockers and The UPS Store centers.”

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Archives, Global Trade Daily, Special Reports

In the Push for Faster Ecommerce Deliveries, How Can Logistics Stay Agile?

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Today’s consumer isn’t used to waiting. They expect to get whatever product they want, wherever they want it, as soon as possible.  Perhaps nowhere is this more true than in the world of ecommerce. Customers look forward to their online purchases arriving faster than ever – sometimes on the same day that they click “purchase.” And with drone doorstop delivery on the horizon, compressed delivery timelines show no sign of stopping anytime soon.

Faster ecommerce delivery has created revolutionary convenience for consumers, but it’s also generated major transportation hurdles for companies to overcome. As a result, companies that want to deliver ecommerce shipments at the speeds that customers expect need to consider how to adapt all elements of their supply chains.

Managing more intricate logistics

Some companies that raced in to capture an early share of ecommerce market struggled to keep up while also keeping costs down. But that’s to be expected with a more complex distribution model.

Instead of shipping mostly to stores, companies now must determine if their supply chains can quickly move orders to many consumers in many locations. To do this, they must be able to proactively coordinate shipments whether they’re on the ground, on the ocean or in the air. 

Companies can help manage this complexity by taking a more hands-on logistics approach. They should draw on a variety of services and resources, while remaining efficient and visible. 

Many shippers, for example, choose to work with a third-party logistics provider to help facilitate the intricate details of shipments, provide visibility, and help freight arrive in a timely manner. 

Fixed or Flexible?

One of the biggest decisions a company in the ecommerce market will make is how they balance their supply chain. 

For example, a supply chain that’s more focused on fixed infrastructure than the fluid movement of goods can lower a company’s costs in the long run but also make them less agile. While a service-heavy, asset-light supply chain can make a company more flexible but also raise their costs.

Some companies are drawing a line in the sand. Some online businesses, for example, are rejecting ecommerce’s expectation of immediacy. Instead, they’re building supply chains that prioritize volume over speed. 

This has pushed ecommerce sellers to start providing more shipping time options. But it’s still unclear whether having more choices will lead to consumers changing their delivery expectations.

In any case, ecommerce fulfillment encompasses several, often-contradictory considerations of time, cost, and transportation mode. To bring these factors together through informed decision making is a challenging undertaking. But it’s essential for any company that wants to compete as ecommerce continues to grow and its barrier to entry continues to fall. 

Taking the first steps

Data goes hand in hand with ecommerce, so it can be a good area for a company to make its first key investment. 

Specifically, advanced business intelligence and predictive data modeling help companies better understand and forecast consumer demand, and they can then adjust their supply chains accordingly. Through access to this data and integration with service information from their shippers, companies can better identify their priorities and decide where to invest resources. 

Those that don’t know where to start should also know they don’t have to make these big decisions on their own. Industry experts like C.H. Robinson can offer a clear perspective—based on their scale and local experts in offices around the globe—and will understand their specific ecommerce business needs and translate them into productive logistics solutions. 

 

Archives, Global Shippers 101, Global Trade Daily

Pros and Cons of Maritime Shipping

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For a long time in human history, maritime shipping was the best way to transport your goods across the world. About 71% of Earth’s surface is covered in oceans. Therefore, transporting your goods on a ship to another continent was a relatively straightforward operation in comparison to land shipping. However, with the advancements in technology, air-shipping has become a dominant form of long-distance transportation. Still, this doesn’t mean that maritime shipping doesn’t come with its own unique pros that make it a better choice in some cases. Of course, the cons of maritime shipping exist as well.

The pros of maritime shipping

We’ll begin by discussing the positive aspects of maritime shipping. As we said, in some situations, these advantages will be enough to tip the scales in favor of choosing maritime freight services.

There’s a lot of room on vessels and they can transport heavy goods

One of the biggest advantages of maritime shipping is that ships can carry all kinds of rather heavy goods. You will have to use ocean freight services if you’re running a business that imports or exports heavy objects, as airplanes usually cannot transport such goods. And if they can, the cost of shipping will be very high. Automobiles, various machinery, industrial parts, and so on, are just some of the things you won’t be able to transport by air (if you don’t want to spend a fortune, that is). 

Generally, maritime-shipping companies provide their customers with much more space than their air counterparts. Not only can they transport heavy goods, but they can transport a lot of them. This makes for high competitive rates and allows maritime shipping companies to easily take care of large demands. Whether you’re transporting heavy goods or a very large amount of lighter goods, maritime shipping is your best option.

Maritime shipping is highly affordable

The fact that there’s so much space on cargo transportation vessels means that it’s not hard to find the space for your goods. Then, there’s also the fact that all businesses whose goods are being carried will share the cost of the specific vessel arriving at its destination. It is primarily because of these reasons that maritime shipping is among the most affordable ways to move your cargo. And when compared with its biggest rival in terms of long-distance shipping (we’re talking about air shipping options, of course), maritime freight services are much (much) less expensive. What’s more, with maritime industry reshaping its supply chain, more accurate cost models are now being introduced. 

Vessels are more eco-friendly

When compared with aircrafts, vessels also provide much better options for eco-friendly shipping. Aircrafts use a lot of petroleum, leaving a very large carbon trail. This, in turn, damages the atmosphere. Such carbon trails disrupt the ecological balance and contribute to the negative effects of global warming. Even the slight cirrus clouds that form behind aircrafts contribute to impact these negative effects on Mother Nature.

As vessels don’t use a lot of petroleum, they leave a small carbon trail. In most cases, this makes them a better option for business-owners who are concerned with helping the planet Earth.

The cons of maritime shipping

Now it’s time to talk about the cons of maritime shipping. Depending on the situation, the advantages we’ve discussed sometimes won’t suffice, as these cons could make you choose another form of shipping.

Maritime cargo transportation is slow

If you need to transport your goods quickly, then maritime shipping will prove to be far worse for your needs than air shipping. Vessels usually have a long way to travel and they’re much slower than aircrafts. In a situation where an aircraft would transport your goods in a day or two, a ship would need an entire month to do so (and that is if there are no delays). While the situation is improving and maritime shipping is becoming faster, if you need fast shipping – vessels won’t do.

The key here is in deciding whether faster shipping will bring you more profit. If a much slower transportation speed won’t negatively influence the profits, then opting for much more affordable maritime shipping seems like the right thing to do.

Ocean freight services can suffer from delays

However, keep in mind that ocean freight shipping options can sometimes make your customers unsatisfied, as they’re not as reliable as air shipping options. Namely, ships operate on weekly schedules and different problems often occur. There’s always a good chance that your deliveries will be delayed. And your customers definitely won’t be pleased with that. While you will save some money if you opt for maritime shipping, you better learn how to communicate bad news to your customers. 

While their goods won’t get damaged, the possible delays will sometimes make your customers choose another supplier. However, if you don’t have a strict deadline and you don’t need to transport the goods very quickly, then maritime shipping could be the best option for you.

About the author: Originally from New Jersey, Alex Durick has been working for bfslebanon.com for three years now. He specializes in freight services related to relocation and also shares bits of knowledge on his company’s blog. Six years worth of experience in the freight business has made him an expert in many areas related to freight shipping, and he’s happy to share his findings with anyone who’s willing to listen.

Archives, Global Logistics, Global Trade Daily

How Amazon Leads as a Supply Chain Provider

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It’s no surprise Amazon made our list of the most successful companies in the supply-chain arena. Amazon is known for implementing game-changing processes that keep competitors on their toes. An example of this is seen through the recently announced Supply Chain Connect FBA program for sellers to utilize. This new shipping platform combines the elements of a centralized portal and increased communication efficiencies. Supply Chain Connect is another way Amazon provides increased visibility from start to finish for both shippers and suppliers.

Another example of supply-chain innovations Amazon offers is the company’s managed blockchain service. This platform allows its customers to seamlessly select a framework, add members and configure member nodes while Amazon Managed Blockchain handles creating a robust blockchain network in a matter of clicks versus the dragged-out process of setting up each step. Additionally, the Amazon Managed Blockchain provides secure blockchain network certificates through the AWS Key Management Service. This service also contains an integrated voting API, giving members immediate access to add or remove other members.

“Many of our customers want to build applications where multiple parties can execute transactions without a central, trusted authority, and they also need to create a blockchain network,” says Rahul Pathak, general manager, Amazon Blockchain at AWS. “Building a scalable blockchain network with existing technologies is just too hard today, and that’s why customers pay expensive consultants to help them.”

“Amazon Managed Blockchain eliminates the muck involved in setting up a network, adding and removing members, and scaling to meet application demands. Customers can use either Ethereum or Hyperledger Fabric, the two most popular blockchain frameworks, and get a functioning blockchain network set up with just a few clicks.”

Successful implementation of a reliable blockchain network creates new advantages for companies while reducing errors that sometimes go unnoticed and lost. With this new technology opportunity for customers, Amazon again sets a new standard for all companies in the supply-chain arena. Customers rely on what works, bottom-line upfront. Even more so, customers are looking to save time to invest in maximizing their own operations.

“AWS has been a great partner in our journey to innovate in the field of blockchain, and with Amazon Managed Blockchain, we are able to more efficiently create a blockchain network and configure our member nodes in minutes,” says Jon Ruggiero, senior vice president, Workday. “AWS’ use of enhanced Hyperledger Fabric enables the blockchain network to be even more robust, scalable and easier to manage. We’re excited for what we’ll be able to accomplish with this service as the number of members and transaction volumes grow.”

Archives, Global Trade Daily, Software

Shipment Identification Simplified with Amber Road’s Cargo Screening Solution

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Global logistics providers seeking a unique solution to overcome challenges related to trade regulations – such as Know Your Customer, and trying to avoid fines and penalties should look no further than Amber Road’s recently launched Carrier Cargo Screening Solution.

The new cargo screening solution – which is equipped with advanced computational linguistics algorithms and translated technical phraseology, was built to assist carriers in quickly navigating through high-volume, multiple provider shipment challenges and accurately identify prohibited, hazardous, or dual-use goods.

“Global trade requires that companies keep up with ever-changing regulations and standards of reasonable care to maintain their trade privileges,” Nathan Pieri, Chief Product Officer at Amber Road said. “However, the market has been devoid of tools to meet these more stringent examinations. With our new Carrier Cargo Screening Solution, we have developed new content libraries and advanced algorithms to offer a robust supply chain risk platform ideally suited for global logistics providers.”

Amber Road’s Carrier Cargo Screening Solution offers advanced risk scoring capabilities that provide carriers alerts to potential issues within shipments. The solution’s unique use of technology further simplifies processes when problems arise, as it is equipped to resolve issues within the platform.

“We are very excited about the impact our new solution will have in the carrier industry,” said Jim Preuninger, CEO, Amber Road.  “We have solved a critical problem by combining our advanced technologies with our vast experience in linking software with content.  We expect our new offering to generate significant interest and meaningful new subscriptions starting this year.”