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Global Trade Magazine Opens Nominations for the 7th Annual “Americas 50 Leading 3PLs”

Global Trade Magazine Opens Nominations for the 7th Annual “Americas 50 Leading 3PLs”

Global Trade Magazine has officially kicked-off its seventh annual “America’s Top 50 Leading 3PLs” nominations process, with the 2019 list scheduled to go live in the September/October issue. This year will feature the most competitive movers and shakers transforming domestic and international logistics by raising the bar higher while exceeding client expectations and maintaining an exemplary company profile and reputation.

Companies leading initiatives in specific industries will have the opportunity to showcase their expertise among a variety of categories including E-commerce/Omni-Channel, Temperature-Controlled, Innovation, Hazmat, Retail, and much more. Following last year’s focus on “needs-based” categories, the 2019 feature will spotlight specialty industries with the highest demand.

“It’s a measure of the quickly growing/changing/evolving global marketplace that arguably the most critical industry serving it, Third Party Logistic Providers (3PLs), continues to grow, change and evolve at a dizzying pace,” explained former senior editor Steve Lowery in the issue’s introduction.

“That evolution has been chronicled over the years in this, our annual Top 3PL issue, as we have written about such things as an increasing emphasis and reliance on technology, the constant march toward transparency and, most recently, the increasing pace of acquisitions and consolidations.”

Global Trade Magazine will determine the final 50 nominations based on industry reputation, outstanding operational excellence, game-changing initiatives, disruptive technology, and unmatched levels of innovation. This list not only showcases leading players, but also serves as a comprehensive list for manufacturers seeking new partnerships and opportunities.

“It is easy to say that one must move faster, deliver services quicker, be more innovative and have an organizational agility to flex with the world, but it takes something quite different to lead the cultural transformation that is required to make these goals a reality,” said Rich Bolte, CEO of BDP.

“Leadership will have to change as well. Leaders will be measured by their ability to innovate and create potential disruptions. The old paradigm of measuring only performance and execution has changed.”

Nominations are currently open and will be accepted through August 15 at 5 p.m. CST.

To see a complete list of recipients, please visit www.globaltrademag.com and view the current issue.         

Integrating Air and Inland Transportation Solves Unique Challenges

Plenty of challenges can surface in the course of executing global logistics, no matter what industry you’re in. The ability to work with one company to service all your transportation needs – including ocean, air, customs brokerage, trade compliance, vendor management, and surface transportation is vital for having immediate and integrated alternatives to solve problems. This capability may be most valuable when it comes to air cargo solutions—where the clock is always ticking, and time is not on your side. Here’s how some companies have collaborated with C.H. Robinson to develop their integrated air-and-surface-transportation solutions.

Merchandising support for retailers

For retailers, launching a new video game successfully requires more than just the game itself. Merchandising support—in the form of posters, kiosks, and other materials that promote the product—is absolutely essential. So, when one company won a licensing agreement to merchandise a hot new video game to retail centers, they looked for an integrated logistics program that would help them meet the release deadlines.

As is true of any bid for logistics services, the company could only share so much information in their request for proposal (RFP). The RFP had called for air charter lift services, but once they awarded the bid to us, we learned more. While the ship dates for the merchandising were uncertain, delivery deadlines were firm, and the company faced stiff penalties from retailers if they missed delivery deadlines. This information led to a review of cost and available commercial air lift options and recalibration of the initial plan.

The resulting plan was fully integrated and lasted for roughly three months. It included a seven-day air transport, airport to door, from Asia into our warehouses at Los Angeles International Airport or Chicago O’Hare International Airport. The plan had to be flexible, and required extensive coordination. So, C.H. Robinson flew in personnel from our Miami office to the distribution centers in Los Angeles and Chicago to oversee all aspects of the handling and ensure that any last-minute problems could be resolved in real time.

At the warehouses, shipments were broken down, repackaged, and segregated for delivery. Working backward from the in-house delivery date to ship dates, once known, the team selected the best transportation type to deliver to retailers in time.

The challenges that surfaced in these moves required flexibility so that shipments could be moved via a variety of transportation modes. As products arrived at the warehouse and were segregated, faster or slower forms of transportation would be selected to hit the firm delivery dates. If there was sufficient lead time, less than truckload (LTL) shipments might be the best, most cost effective option; if time was tight, the freight might be shipped by the full truckload with team drivers. Wherever possible, LTL shipments would be consolidated and be delivered by multi-stop full truckloads for greater savings.

Overall, the project required coordination of air freight and warehousing, plus full truckload, consolidation, or LTL deliveries from the warehouses to 30 U.S. destinations to meet delivery deadlines. With onsite coordination, the company had an on time delivery percentage of 99% at the retail locations.

Shipping urgent product to bring an automotive plant back online

Automotive production lines have rigorous delivery requirements. Shipments are timed precisely so they arrive just in time for production. If anything goes wrong and materials don’t arrive as expected, entire plants can shut down, putting hundreds of people out of work and costing companies millions.

So, when an automotive plant in the United States went down, they contacted another original equipment manufacturer (OEM) for help. The OEM needed to obtain product from six European suppliers and get them to the plant as soon as possible.

At the time, air capacity was not as accessible. So, our team looked for the next-best alternative: partial charter for several skids of critical materials. The product was flown into Chicago, where a team of drivers was waiting. Due to pre-clearing customs, our team was able to breakdown the aircraft and load the trucks within two hours. Once the trucks were loaded at the warehouse, they headed inland to complete the delivery.

Speed and efficiency were vital in delivering the product to our customer. Our skill is to find and offer different solutions to achieve the client’s goals and get the plant back in operation as quickly as possible.

A solution for urgent heavy-lift shipments in the automotive industry

Sometimes urgent freight comes in big packages. A company in the automotive industry urgently needed to ship machinery from Chicago to Liuzhou, Guangxi, China. Because this was a last-minute request, however, their regular crating company in Michigan was unable to complete the job in time. That’s when the company contacted the C.H. Robinson project logistics team to find alternatives.

Our team not only had a long-time relationship with the company, but also with crating companies in the Chicago area. The team used their knowledge, flexibility, and connections to find outside-the-box solutions, arranging for crating to take place the following day. As the crating was underway, the company also awarded the transport portion to C.H. Robinson.

The urgently needed freight had to be shipped by air. Thirteen crates totaling 166 cubic meters and 44.6 metric tons were transported for the company, with the largest piece weighing 14 metric tons. Cranes were used to load the 13 crates onto the aircraft for transport from O’Hare in Chicago through South Korea to Guangzhou Baiyun International Airport in China. From there, the crates were transported inland to the customer’s door in Liuzhou, Guangxi, China.

The company’s decision to work with one company to service all their transportation needs—including crating, air freight transport, and inland transportation service, provided a solution for their urgent deadline. The cargo was able to be delivered safely and quickly.

What it takes to integrate air and inland transportation solutions

In logistics, there’s simply no substitute for integrated problem-solving. Nowhere is that truer than with urgent freight requirements that require a multi-pronged transportation solution.

When freight absolutely positively has to be there, challenges are sure to arise. Companies can work closely with their logistics provider to select the best, most flexible options to meet their goals. With proper coordination, and by working together, shippers can easily achieve their supply chain objectives—in the long and short term.

Matt Castle is Vice President of global forwarding products & services at C.H. Robinson

EDF Climate Fellow to Join APL Logistics Team

APL Logistics announced the latest addition to the company will further support the company’s vision to grow sustainable solutions by creating a Scope Three Greenhouse Gas Emissions Calculator. Environmental Defense Fund (EDF) Climate Corpsfellow, Sriram Rachamadugu, is the man behind Scope Three which will be available for customer use late 2019. This solution will model GHG Protocol greenhouse gas reduction scenarios aligned with the Global Logistics Emissions Council’s (GLEC) carbon accounting methodology.

“We are focused on innovative opportunities to serve our customers,” said William Villalon, President of APL Logistics. The ability to model value chain emissions is a critical first step to signal investors that we are considering the business risks of climate change. APL Logistics continues to prepare for shifts in public policy and consumer preference, as we make decisions that consider the needs of future generations.”

APL Logistics’ Visual Intelligence Team is the main source of data as the calculator gathers resources from EDF Supply Chain Solutions Center to create sustainable solutions.

“Organizations like the Climate Action 100, a cohort of 300+ institutional investors controlling $33+ trillion, believe disclosing the risks of climate change is their fiduciary responsibility,” added Jessica Balsam, Director of Sustainability for APL Logistics. “We are providing results aligned with the business goals of customers concerned with investor pressure and the proliferation of global greenhouse gas pricing schemes. Over time, APL Logistics is prepared to be an active voice in shaping these issues and identifying collaborative partnerships for systems-based solutions.”

“Sriram’s calculator will provide APL Logistics with the data needed to set specific and measurable climate goals, an important step in any organization’s sustainability journey, as well as establish the groundwork for which future sustainability projects can be carried out,” said Scott Wood, Director of EDF Climate Corps

Shipment Identification Simplified with Amber Road’s Cargo Screening Solution

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.” 

Containerized Shipping of U.S. Soybeans Spikes in Asian Countries

A recent report from the Illinois Soybean Association and the Federal Grain Inspection Service reveal containers shipping soybeans to Asian regions has spiked by 40 percent since 2014-2015.

Primarily led by Indonesian purchases, containerized shipping is experiencing an overall increase in demand for shipping U.S. soybeans to the specified region and shows no signs of slowing down. Additional information noted that container shipments of soybeans are expected to increase by 18 percent through August 31.

“Wider use of containers, thanks to the huge supply of empties in the Chicago area, has resulted in industry investments to increase the visibility and viability of this option,” said Eric Woodie, a trade analyst with the ISA checkoff program.

“There’s a major opportunity to take advantage of empty containers sitting idly in the U.S. and return them to export markets with soybeans. Not only does this help alleviate a significant problem in global trade, but it offers great value to international buyers, soybean exporters and Illinois farmers.”

Countries listed with the highest containerized soybean shipping include Indonesia, Thailand, Vietnam, and Malaysia. Indonesia is reported as the top buyer with a total of 1.4 million tons of soybean shipments. This method of shipping provides smaller companies the ability to minimize inventory investments while preventing lengthy delivery times, ultimately supporting added preservation.

THE FABULOUS 5: TOUCHING DOWN AT AMERICA’S TOP CARGO AIRPORTS

The U.S. air cargo market has been increasing at a steady clip. The economy has officially rebounded and in 2017 alone roughly 61.5 million tons of freight moved via airlines worldwide. Cargo airlines enjoyed healthy revenues of $95.9 billion, and there are a handful of American cargo airports that surged into 2019 as a result. 

Memphis International Airport (MEM)

The leader of the pack, MEM is No. 1 in the U.S. and No. 2 globally. Hong Kong is the worldwide leader with Shanghai-Pudong following at No. 3.

At MEM, FedEx is a massive player and responsible in a large degree for Memphis’ substantial activity. The global delivery company accounts for roughly 99 percent of cargo that passes through Memphis every day. In fact, MEM registers 450-plus arrivals and departures daily.

FedEx maintains 40.9 million square feet of space (under lease) at MEM, and the sheer volume that FedEx moves allows the airport to maintain competitively low landing fees. This is the goal of every airport and MEM is gaining on the big boys globally as a result.

Ted Stevens Anchorage International Airport (TSAIA)

Three Air Cargo Excellence (ACE) Awards went to TSAIA, the No. 2 in U.S. cargo volume. Alaska is a bit of an outlier, figuratively and literally, but unbeknownst to the larger public, most big cargo airlines stop off at Ted Stevens to refuel as it is nearly halfway between Beijing and New York. There are planes that can fly non-stop from China to anywhere in the U.S., but they typically possess less cargo. If one prioritizes cargo over time, then greater cargo space planes equate to increased revenues as more refueling is necessary.

Ted Stevens’ spokespeople are famous for pointing out that the airport is less than 10 hours from 90 percent of the modern, industrialized world. Growth rates for air freight have skyrocketed over the past handful of years. In 2014, airlines transported an impressive 40 million metric tons of goods. However, that was less than 1 percent of world trade (measured by volume). Today, air freight is more than double that of shipping.

Ted Stevens comes in fourth in the world, and their ground handlers can nimbly turn a cargo plane around in less than two hours. The airport is named is after the late U.S. Senator Ted Stevens (R-Alaska), a master tactician who was able to funnel a tremendous amount of federal funding to Anchorage, which aided in the construction and maintenance of runways and the city at large. Roughly one in every 10 jobs in Anchorage is directly or indirectly (third-party providers, etc.) related to the airport.

Louisville International Airport

As with MEM and FedEx, when one thinks of Louisville International Airport, UPS springs to mind. United Parcel Service counts on a 5.2 million-square-foot processing facility that can sort a whopping 416,000-plus packages an hour. UPS maintains 12 sorting hubs and Louisville is by far the largest. With a 7.2-mile perimeter, the size of the runways dwarfs the passenger terminal.

But why Louisville of all places, you ask? First, the city has good weather and is only 2.5 hours from approximately 75 percent of the U.S. population. Zappos has set up shop nearby and Sprint and Nikon also use UPS for nearly all their shipping.

UPS’s Worldport is the largest, automated package handling facility worldwide. An impressive 300 flights arrive and depart daily, with December being the peak holiday shipping season.   

O’Hare International Airport (Chicago)

On the heels of completing the second phase of a brand new cargo facility, don’t be surprised to see O’Hare jump a couple spots next year. In 2017, their cargo volumes were up by 15 percent, which makes yet another record year for freight arrivals and departures.

Financed by a $160 million investment from Aeroterm and roughly $62 million from the airport, the Phase II building measures a whopping 240,000 square feet. Once all phases are complete, 800,000 square feet will be available, which means up to 15 widebody aircraft will have the ability to unload at any time at O’Hare.

Trade with Asian countries is growing annually, with China being the top destination. Unsurprisingly, DHL also counts on a strong presence at O’Hare, namely a 54,000-square-foot gateway that cost $10 million to develop.   

Miami International Airport (MIA)

MIA got off to a hot start last year, registering 4 percent growth in freight tonnage over the first three months. In fact, by the end of the year, MIA witnessed an increase of cargo volumes by 60,000 tons thanks to three new carriers. But perhaps most exciting for the fifth largest cargo airport in the States is their new partnership with Amazon Air.

A twice-daily freighter service was announced by Amazon Air last October, which made perfect sense being that the largest retailer on the planet already occupies four warehouses in Miami-Dade County alone.

MIA was up 17.25 percent in domestic cargo tonnage and 1.78 percent in international cargo tonnage in 2018. Demand from Latin America e-commerce is expected to be red hot, which should equate to potential record profits for MIA.     

While the major U.S. airport players in air cargo are clear, nipping at their heels are the likes of Indianapolis, Los Angeles, Cincinnati/Northern Kentucky and John F. Kennedy (New York). The economy is humming, which means all these cargo hotspots are well into a busy 2019. Happy shipping!

SkyCell & Air France KLM Martinair Cargo Extend Collaboration for Pharma Logistics

In an effort to extend improved and innovative services for clients, SkyCell – known as the fourth largest pharma airfreight container provider, and
Air France KLM Martinair Cargo, confirmed they will extend their collaboration globally with plans to present it to the global AF KLM network. Air France KLM Martinair Cargo boasts one of the largest and densest global networks.

“Air France KLM Martinair Cargo values of Transparency, Innovation and Care match the values of SkyCell: we are both committed to provide the highest quality standards to our clients in the most transparent and innovative way. SkyCell is driven by technological innovation in pharma transport technology and that is why we want to work very close together,” said Enrica Calonghi, Global Head of Pharmaceutical Logistics at Air France KLM Martinair Cargo.

In a recent evaluation from one of the Big Four international audit companies, SkyCell’s shipments from the last 12 months showed a
0.1 percent of the transports involved a temperature excursion with their containers. The companies share a common theme in transparency in addition to customer-driven services.

“Air France KLM Martinair Cargo is a pioneer in pharma airfreight services and has an extensive network. With a shared vision of innovation in the supply chain of temperature-sensitive products, our collaboration will ensure that consumers are guaranteed a safe and sustainable service. We will also further improve our services through SkyCell’s data-driven approach,” said Richard Ettl, CEO of SkyCell.

RSL AND THE COMPETITIVE ADVANTAGE OF ORDER FULFILLMENT

Order fulfillment can be labeled as the least appealing part of the e-commerce lifecycle. However, as unappealing as it is, order fulfillment is integral to the shopper and retailer. On its simplest level, an order that is placed must be shipped out. So, how can an order fulfillment 3PL be a competitive advantage for retailers?

Rakuten Super Logistics (RSL) is a leading 3PL that operates a nationwide network of 12 order fulfillment facilities. With such an expansive network, RSL is uniquely positioned to provide the competitive advantage that many retailers need.  “The RSL network opens the marketplace to choice and flexibility,” says Michael Manzione, CEO of Rakuten Super Logistics. “Scaling up and down is invaluable and, depending on your size and need, you can utilize our two-day delivery network or drill down to further locate your product closer to the end consumer.”

While RSL is among the 3PLs with the most expansive U.S. networks, they are not stopping there. They recently announced plans to open an additional six U.S. facilities by the end of the year. Their expansion will include the major metropolitan cities of Houston and Los Angeles.

“Our continued expansion into major metropolitan markets is a commitment to our customers,” Manzione says. “Our larger footprint will facilitate our ability to deliver our clients product to their customers via next day ground and even same day in some cases.”

Meeting a client’s demand is always a priority. This is evident in RSL clients that practice Just In Time (JIT) inventory from overseas. When executed properly, JIT is a competitive advantage as the inventory system increases efficiency and decreases waste by receiving product as it is ordered, thereby reducing inventory costs.

Rakuten Super Logistics’ 12 facilities are all located near major shipping ports, which reduces the time from when a product enters the country to when it is received in the warehouse. That close proximity to major container ports allows RSL clients to keep lower inventory levels, thereby reducing their costs while leaving room for scalability.

Scalability is a huge advantage for retailers that have seasonal lifecycles. Take Black Friday as an example. In 2018, Black Friday e-commerce sales in the U.S. topped $6.2 billion, dwarfing the $5 billion in 2017 Black Friday sales.* The strain on 3PLs was enormous but managed through valuable resources. However, many retailers who managed order fulfillment in-house could not meet the increased customer demand.

Operating a vast network of facilities, RSL provides more than just the ability to scale. It provides significant cost savings to its clients. “Our approach to serving the small to middle-size e-commerce companies allows them to compete equally with their larger competitors at a competitive rate,” says Manzione.

Rakuten Super Logistics negotiates shipping rates with the major carriers based on their large-scale shipping volumes. This means that when an e-commerce retailer partners with RSL, they receive the reduced, negotiated shipping rates.

“With the USPS First Class Packages service structure change to zone-based pricing, all e-commerce retailers must consider how to locate their product closer to their customers,” Manzione notes. The zone-based pricing structure will leave many retailers sticker shocked–the cost to ship a one-pound package from LA to New York will be significantly higher.  Leveraging Rakuten Super Logistics’ shipping rates will help keep these costs more manageable.

The savings isn’t always bottom line either. “We have built a great two-day ground network and now want to offer additional choices for those seeking same day and next day delivery, while maintaining lower shipping costs,” Manzione says. “Technology is the key to our success. In 2018, we implemented ‘picker-robots’ developed by California-based inVia. The picker robots help increase production and order accuracy. Technology and innovation have been the backbone of Rakuten Super Logistics. We continue to implement the latest technology.”

Manzione continues: “The exponential growth in e-commerce couldn’t have been accomplished without significant changes to logistics. Rakuten Super Logistics has been on the forefront of 3PL innovation; from using robotics to zone skipping, Rakuten Super Logistics provides clients with a competitive advantage to succeed in the tough online space.”

Source: Statista

Peli Biothermal Making Moves in Los Angeles

Peli Biothermal makes the news again with the recent announcement confirming the Los Angeles-based network station this week. The purpose of the new location is to serve as a service station, offering repairs and refurbishing for the company’s reusable Crēdo on Demand shippers. This expansion also confirms the company’s plan to exceed 100 network stations and drop points for early 2019.

“Los Angeles is a major logistics hub for sea and air carriers as well as a hot spot for pharmaceutical innovation,” said Dominic Hyde, vice president of Crēdo on Demand. “As we continue to expand our Crēdo on Demand rental program, the LA network station and service centre puts customers in Asia and elsewhere in the world in closer proximity to more convenient and flexible shipping options.”

Located next to the Port of Long Beach and LAX, the network station provides competitive access to the 1,570 biotech and pharmaceutical companies in the state of California.

About Peli BioThermal
Peli BioThermal Ltd. offers the widest range of temperature controlled packaging and service solutions to the global life sciences industry. The company is the recipient of two Queen’s Awards for Enterprise: International Trade in 2018 and Innovation in 2017.  The company’s products ensure that delicate biological materials arrive intact and effective, despite exterior environments.  Peli BioThermal is dedicated to developing innovative products designed to fulfil the complex needs of the global life sciences industry. The company’s customers benefit from its extensive expertise in ensuring that temperature stability is maintained throughout the distribution chain. The company also offers a complete portfolio of services and software to support end-to-end temperature-controlled packaging asset management. Outside of Europe, the company does business under the name Pelican BioThermal LLC. For more information, visit pelibiothermal.com.

Source: Peli Biothermal

Automation Changing the Pace for Shipping Operations

Recently, Avantida announced Maersk’s implementation offering Container Triangulation for the Canadian and U.S. platforms, enabling communication between dispatchers and planners almost instantly. The process of automation will take place on Avantida’s platform, providing an opportunity for the company to penetrate the market regions.

“Both shipping lines and transporters continue to look for agile, cost-saving tools that can optimize their planning, and our platform has a proven track record of improving efficiency,” said Luc De Clerck, CEO, Avantida. “The platform has changed the way shipping lines in Europe are doing business, and after our launch in Mexico, it was a natural next step to introduce Avantida to the United States and Canada.”

Another example of how digitization is changing the pace of the market expansion is seen in the recent announcement from the digital freight forwarder, Twill. The company confirmed efforts to expand its 19-country network to the Nordic regions through operations in Denmark and Sweden, where they are being welcomed with open arms primarily because of the digital solutions platform providing customers increased visibility into each step of the process. More importantly, Twill’s online platform is applauded for the ability to co-create with its customer base. This unique feature is what sets the company apart, creating a hefty competitive advantage.

“The world is already becoming more and more digital around us, and with Twill we are challenging the fundamentals and changing perceptions in the freight forwarding industry,” says Ricco Poulsen, chief operating officer for Nordics and Eastern Europe at Damco said. “We want to be the market leader in digital solutions and our investment in this area will bring significant benefits to our small and medium customers, old and new. There are a number of ways in which Twill will continue to develop and support customers over the coming months, and we look forward to playing our part in that.”

Before understanding the impact that digitization solutions bring to the market, company leaders must first understand the core of digitization is rooted in customer demands. Without fully understanding what the customer’s needs and demands are, it can be a challenge selecting which tech solution will meet both customer and company needs, all while creating a competitive advantage and staying ahead of compliance.