This is a guest post by Harrison Clarke.

Recent changes in maritime law have ushered in a new era for those of you who import and export goods. The landscape of international trade is continually evolving, presenting challenges and opportunities. Understanding these legal shifts is essential for maintaining compliance and optimizing your operational strategies.

For importers and exporters, the stakes are high, as failing to adapt can lead to significant disruptions and financial penalties. This guide goes into the specifics of these changes, providing insights into how you can navigate these new regulations effectively. Hence, staying informed is not just beneficial—it’s imperative for your continued success in the global market.

Specific Legal Amendments Impacting Maritime Operations

In recent months, targeted legal amendments have been impacting maritime operations, specifically designed to address current challenges in international shipping. These changes include stricter regulations on ship emissions, enhanced protocols for ballast water management, more vigilance on ocean freight carriers, and increased security measures for vessels navigating international waters.

Each of these specific regulation types directly affects daily operations, demanding adjustments in how shipping companies and shippers manage fleets, documentation, and operation. For example, the new emissions standards require ships to use lower sulfur fuel or install emission-reducing equipment, a significant change that affects operational costs and planning. Similarly, the updated security measures necessitate rigorous checks and balances, adding layers of complexity to compliance efforts.

For importers and exporters, understanding these specific amendments is essential to maintaining efficient and legal operations.

Changes in Maritime Law Will Create Compliance Complications for Importers

Navigating the intricate web of new maritime laws has introduced significant compliance complications for importers. The recent legal changes necessitate a deeper understanding of documentation requirements and stringent cargo inspections.

Importers now face an expanded range of forms and permits, each reflecting heightened security and environmental standards. This increase in paperwork complicates routine operations and sets the stage for potential delays and increased scrutiny during port inspections. As an illustration, failure to meet the new documentation standards can result in costly hold-ups, affecting overall supply chain efficiency.

Importers must, therefore, stay vigilant and possibly seek expert legal guidance to avoid disruptions and ensure smooth customs clearance.

Export Challenges in the Wake of New Regulations

The landscape for exporters has shifted dramatically following the introduction of new maritime regulations. These updates have reshaped aspects such as export licensing and the implementation of advanced security protocols.

Exporters now must navigate more rigorous checks that can significantly prolong the process of getting goods to international markets. This increased scrutiny is designed to enhance global trade security but comes at the cost of potential delays and added operational complexities.

Moreover, changes to export licensing requirements mean businesses must obtain additional approvals and potentially restructure their logistics to comply with new legal standards. Adapting to these conditions is essential for exporters aiming to maintain market presence and avoid legal complications.

Increased Costs from Legal Adjustments

Adjusting to the recent changes in maritime law inevitably leads to increased operational costs for both importers and exporters. Compliance with these new regulations often entails additional fees, including those for updated licensing, enhanced cargo inspections, and environmental compliance measures.

Efficient storage solutions become essential here as businesses must manage larger inventories of compliant materials and documentation safely and accessibly. In this scenario, NYC Mini Storage offers an exemplary service for New York City residents. Known for their reliability and flexibility, they provide secure, scalable options ideal for businesses grappling with the need for additional space due to regulatory demands.

This strategic financial planning is important for mitigating the economic impact of these legal changes, ensuring businesses remain efficient and compliant.

Technological Solutions to Maritime Law Challenges

Technological solutions have emerged as vital tools for ensuring compliance and streamlining operations in response to the tightening of maritime laws.

Digital documentation systems, for example, simplify the management of the extensive paperwork now required under new regulations. These systems reduce the risk of human error and enhance the speed and security of data handling.

Similarly, real-time cargo tracking technologies provide exporters and importers with up-to-date information on their shipments, which is essential for managing schedules amidst stricter inspection protocols.

Investing in such technologies aids in adhering to new legal standards and offers long-term benefits by improving operational efficiency and reducing potential delays. Embracing these technological advancements is increasingly becoming necessary for businesses aiming to succeed.

Legal Resources and Support for Businesses

As the complexity of maritime law increases, accessing specialized legal resources and support becomes important for businesses involved in international trade.

Industry associations often offer up-to-date guidance and workshops on compliance with new regulations. Legal firms specializing in maritime law can provide tailored advice that addresses specific business needs and challenges. Also, government portals often have sections dedicated to recent legislative changes, offering official interpretations and procedural advice.

Leveraging these resources helps businesses remain compliant and enhances their ability to anticipate and react to future legal shifts. Engaging with these support networks is essential for navigating the complexities of maritime law effectively and ensuring smooth operational transitions.

Strategic Adjustments for Long-Term Adaptation

With new maritime laws in place, strategic adjustments are imperative for long-term success in import-export activities.

One effective approach is diversifying supply chains to reduce dependence on single points of failure, which can be particularly vulnerable under stringent regulations. Reevaluating vendor contracts to include terms that reflect new legal realities is another important step, ensuring that all parties are aligned with current compliance requirements. Further, enhancing in-house compliance departments with expert staff and updated training programs can equip businesses with the resilience to handle future regulatory changes.

Emphasizing these proactive strategies helps businesses adapt to present conditions and positions them well for future shifts in the regulatory landscape.

Summary: Staying Afloat Amidst Maritime Law Changes

Navigating the recent changes in maritime law requires a diligent and informed approach. As the regulatory environment continues to evolve, staying updated on these changes is not just advantageous—it’s essential.

Utilizing legal resources, embracing technological solutions, and making strategic adjustments are key to maintaining compliance and operational efficiency. Hence, continuous engagement with industry experts and investment in compliance infrastructure are vital.

In short, proactively managing these legal shifts will ensure your business remains robust and competitive in the global marketplace.

This was a guest post by Harrison Clarke.

Author Bio

Harrison Clarke is a seasoned business strategist with over twenty years of experience in corporate leadership. Harrison is recognized for his pragmatic approach to solving complex challenges and his ability to guide companies toward sustained success in competitive markets. His leadership skills and innovative thinking make him a respected figure in the business community.

The post How Recent Changes in Maritime Law Affect Importers and Exporters appeared first on Universal Cargo.

The power of big data is driving a seismic shift in the logistics sector, which is the foundation of world trade. Logistics is embracing a data-driven future, releasing a wealth of insights to enhance operations and transform the supply chain. It is no longer limited to manual processes and segregated information.

This article analyzes how big data is revolutionizing logistics management by examining its uses, advantages, and potential long-term effects on the sector.

What is Big Data in Logistics?

The term “big data” in logistics describes the enormous amount, speed, and diversity of data produced across the supply chain. This data includes details about customer demand, market trends, warehousing, transportation, and inventory.

Numerous sources, such as Internet of Things sensors, GPS trackers, RFID tags, barcode scanners, consumer transactions, social media, and external databases, are used to gather this data. Big data is unique primarily because of its quantity and complexity, which call for sophisticated analytics methods in order to gain useful insights and facilitate well-informed decision-making.

“According to a McKinsey report, businesses that use big data analytics for demand forecasting can reduce inventory holding costs by up to 20% and increase forecast accuracy by 10%.”

The Transformative Power of Big Data Analytics

Big data empowers logistics companies in several key ways:

Route optimization: By combining weather forecasts, traffic statistics, and past delivery information, the most effective delivery routes can be dynamically planned, cutting down on both fuel use and delivery times.

Predictive maintenance: It is the process of foreseeing future maintenance requirements by analyzing sensor data from machinery and cars. This helps to keep costs down and ensures smooth operation.

Demand Forecasting: Accurate demand forecasting enables businesses to optimize inventory levels and prevent stock outs or overstocking by analyzing previous sales data and consumer trends.

Warehouse Management: By optimizing labor allocation, picking tactics, and warehouse layouts, big data can lower handling costs and expedite order fulfillment.

Risk management: You may anticipate any disruptions and take proactive steps to reduce risks by using real-time weather data and cargo monitoring.

Improved Consumer Experience: Logistics firms can personalize delivery options, offer real-time cargo tracking updates, and anticipate consumer needs by analyzing customer data. This results in a more fulfilling customer experience.

According to Unipart Group, 50–60% of companies that use big data have seen improvements in supply chain efficiency.

Big Data in Action: Real-World Applications

Here are some examples of how big data is transforming logistics in practice:

Amazon: Uses big data to tailor shipping options for its enormous customer base, optimize warehouse layouts, and forecast demand for millions of products.

FedEx: Uses big data analytics to predict changes in package volume, optimize delivery routes, and expedite the customs clearing procedure.

Maersk: Makes use of big data to track shipments instantly, spot possible hold-ups, and get in touch with clients ahead of time.

Benefits of Big Data in Logistics

GPS tracking: Improved delivery transparency and route optimization are made possible by real-time cargo location tracking.

Improved Visibility: Big data gives supply chain operations real-time visibility, which improves risk management, decision-making, and responsiveness to shifting market conditions.

Enterprise Systems: Data on orders, inventory levels, and supplier details are generated by enterprise resource planning, or ERP, systems.

Personalized Service Options: Expedited order fulfillment and proactive communication are made possible by big data, which improves customer happiness and loyalty.

Data-Driven Insights: Big data analytics produces business intelligence and actionable insights that enable organizations to make data-driven decisions, spot optimization opportunities, and outperform the competition.

Sensor Networks: Real-time position, temperature, and other critical metrics data are provided by sensors installed in cars, warehouses, and containers.

Customer Interactions: Purchase histories and customer reviews provide a clear picture of demand trends.

Logistics firms can revolutionize their operations by extracting important insights by utilizing big data analytics.

Challenges and Considerations

Even if big data has many advantages, there are several things to keep in mind:

Data Integration: It might be difficult to combine data from many sources throughout the supply chain.

Data Security: Robust security protocols are necessary to prevent assaults on sensitive data.

Data Talent: Experts with the ability to evaluate and decipher large amounts of data are highly sought after.

Big Data’s Future in Logistics

Big data will be integrated much more thoroughly into logistics as data collecting and analytics capabilities advance. What to anticipate are:

Advanced Analytics: By allowing increasingly more complex optimization algorithms, machine learning and artificial intelligence will be able to extract deeper insights from large data.

Internet of Things: Richer insights will be possible due to the increasing volume and variety of data that will be made available as connected devices proliferate.

Collaboration and Transparency: Increased efficiency and transparency in the supply chain will result from data-driven collaboration between the different stakeholders.

Conclusion

Big data is changing the game in the logistics industry; it’s not just a catchphrase. Logistics organizations may achieve a competitive advantage, streamline their processes, and provide outstanding customer service in a data-driven and dynamic environment by using big data analytics. Big data will keep changing the supply chain as time goes on, opening the door for a logistical environment that is more effective, transparent, and focused on the needs of the consumer.

 This was a guest post by Charlotte Sanders.

Author Bio

Charlotte Sanders, having more than 15  years of experience, has served as the controller and department head of nVision Global. Her extensive experience in finance, coupled with her educational qualification has made her an expert in her field. She resides in McDonough, Georgia. In her spare time, she likes to workout, go fishing, and spend quality time with her family.

The post Big Data Transforms Logistics: Supply Chain Optimization in a Future of Data Driven Decisions appeared first on Universal Cargo.

Congestion at the Port of Singapore hit critical levels over these last couple weeks. Container ships are having to anchor and wait to dock, with wait-time estimates of up to seven days. This is as ships are already spread thin by having to reroute away from the Suez Canal because of Iran-backed, anti-Israel Houthi attacks in the Red Sea and Gulf and Aiden making it unsafe for them and their crews.

Shipping Watch reports that nearly half a million containers are waiting at the Port of Singapore.

Other major ports in China are also seeing significant congestion. Chinese exporters and U.S. importers from China are rushing to get goods moved through the ports before President Biden’s tariff increases hit, which adds to the congestion.

As is usually the case, the congestion at ports in China ripples through global supply chains. Availability of container ships and shipping containers is causing shortages and delays for shippers in other regions.

This is also adding even more upward pressure on freight rates that are already very high.

The international shipping industry was already stretched thin. Global supply chains are now likely to suffer serious disruption while shippers pay high freight rates for delayed imports and exports.

The post Shipper Alert! Critical Chinese Port Congestion Spreading Delays & Upping Freight Rates appeared first on Universal Cargo.

The Baltimore bridge collapse and the Taiwan earthquake are among the latest disruptions forcing businesses to adjust their management and tracking strategies. They’re an unwelcome addition to the continued Red Sea attacks plaguing commercial vessels. As exporting and importing goods become more complicated in the face of these unpredictable events, the digital and physical supply chain gap widens. How can brands close the gap?

Disruptions to Trade Routes Are Widening the Gap

In March, the Francis Scott Key Bridge — a structure that took nine years to plan and five to build — collapsed. U.S. Transportation Secretary Pete Buttigieg called the Baltimore bridge collapse a “major and protracted” issue for supply chains.

The Port of Baltimore is among the busiest in the country. It handled $80 billion worth of cargo in 2023, so its closure will cause millions in daily trade and tax revenue losses for the foreseeable future. Of course, no one could have predicted this incident would occur.

The more recent 7.2-magnitude earthquake in Taiwan — the largest in over two decades — further illustrates this point. The country is one of the leading global hubs of critical electronic components like display panels and semiconductors. Notably, it is home to Taiwan Semiconductor Manufacturing Co. (TSMC) — the world’s largest chipmaker.

For some time now, supply chains have been plagued by prolonged disruptions caused by geopolitical conflicts. For instance, Red Sea shipping attacks have lasted months. Yemen’s Houthi rebels have launched dozens of assaults since November 2023, sinking one vessel and seizing another.

While navigating geopolitical-based disruptions has proven challenging and led to significant delays and price hikes, these issues are more predictable. For instance, the Houthi rebels stated they’ll continue to carry out their operations until Israel leaves Gaza alone. On the other hand, freak accidents are impossible to forecast.

Since businesses cannot anticipate supply chain disruptions like these, they must be able to recover as quickly as possible. However, many cannot because the digital and physical supply chain gap leaves them with inadequate visibility and avenues for response.

The Gap Between the Digital and Physical Supply Chain

The gap between the digital and physical supply chain is an imbalance in how a business stores, transports and tracks physical goods, and manages their flow of supply-chain-related data. It can manifest as a failure to utilize data, a lack of visibility, inefficient vendor collaboration or poor insight extraction.

Many companies overlook valuable opportunities at smaller scales. Take manufacturers’ air compressors, for example, which can power several separate equipment simultaneously. By integrating digital monitoring systems, decision-makers can better understand their suppliers’ production rates, making inventory tracking more accurate.

Despite the emergence of modern product tracking and vendor management technologies, many enterprises fail to connect their digital supply chain to its physical counterpart. According to one survey, less than three in 10 organizations are data-driven. In an age where supply chain disruptions are becoming increasingly common, data reliability is critical for success.

Why Businesses Must Work to Close the Gap

When data on warehouse inventory levels and product locations doesn’t reflect its real-world counterpart, brands suffer from process inefficiencies. Consequently, reacting to market changes, supply chain disruptions and shifts in consumer demand become more challenging. As a result, they may struggle to keep up with their competitors. 

Productivity loss is another one of the most significant byproducts of such discrepancies. Equipment failure — which is often addressed with reactive maintenance programs — accounts for 50% of unplanned downtime, amounting to billions of dollars in annual losses.

If businesses cannot rely on their data, the collaboration between manufacturers, suppliers and logistics fulfillment falls apart. How are third parties — many based in different countries — supposed to work in tandem when the foundation for their efforts is inaccurate or outdated?

More often than not, the gap between the digital and physical supply chain is artificial — an unintentional byproduct of mismanagement. Many enterprises underutilize their data, resulting in missed opportunities and wasted resources. In fact, nearly 80% of firms report they struggle to take action on insights extracted from real-time information collection.

Closing the Gap By Leveraging Technology 

When disruptions impact trade routes, organizations that rely on a cohesive digital and physical supply chain will emerge composed and collected. They can also outperform their competitors and leave those struggling with the widening gap behind. Decision-makers who recognize a discrepancy between their digital and physical supply chains should consider leveraging automation, decentralized ledger and Internet of Things (IoT) technologies to close the gap.

The goal is to enhance visibility and traceability by improving the accuracy of management and tracking technologies to eliminate discrepancies between the digital and physical supply chains. In this context, automation technology like artificial intelligence or robot process automation can fill the gaps where real-time data is unavailable or unnecessary, streamlining administrative tasks.

With decentralized ledger technology — namely, the blockchain — companies and their vendors can log an immutable record each time products change hands or move locations. This real-time information enables them to respond dynamically to any sudden market changes or supply chain disruptions, as it ensures their data always reflects its real-world counterpart.

In some cases, businesses can use technology for predictive analytics applications to enhance their demand forecasting. This would allow them to anticipate shifts in consumer demand or potential delays, and adjust their inventory levels or shipping routes accordingly.

Digital transformation or optimization is vital for closing the gap. Brands can proactively adjust to unforeseen changes while securing a positive return on investment.

The Importance of Strategic Digital Transformation

Many organizations have discovered their current technological solutions are inadequate in the face of natural disasters and freak accidents. As they struggle to apply their data in decision-making processes or integrate their equipment in meaningful ways, they lose their competitive edge to those who have already closed the gap.

In short, businesses must consider strategic digital transformation or optimization to ensure they can meaningfully extract and apply data-driven insights. Simply utilizing modern technologies or collecting real-time information isn’t enough anymore — they must strive to ensure their digital supply chain accurately reflects its physical counterpart.

This was a guest post by Ellie Gabel.

Author Bio

Ellie is a freelance writer who loves exploring the latest advancements in tech and science and how they’re impacting the world we live and work in. She’s also the associate editor of Revolutionized.com.

The post Closing the Gap Between the Digital and Physical Supply Chain appeared first on Universal Cargo.

Trade policies and tariffs significantly impact the global economy, affecting various industries, including shipping. Recent changes in tariffs can profoundly influence U.S. shippers, altering costs, supply chain dynamics, and market competitiveness.

Understanding these implications is crucial for businesses involved in shipping operations. In this article, we delve into the impact of new tariffs on U.S. shippers and provide insights into navigating this evolving landscape.

The Current Tariff Landscape

Tariffs, essentially taxes on imported goods, are used by governments to regulate trade, protect domestic industries, and address economic concerns. Imposing tariffs can lead to price increases for imported goods, disrupt supply chains, and affect consumer behavior.

In recent years, the United States has seen fluctuations in its tariff policies, with changes implemented to address trade imbalances, promote domestic manufacturing, and protect intellectual property rights.

Impact of New Tariffs on Shipping Costs

One of the most immediate effects of new tariffs is the increase in shipping costs for U.S. importers and exporters. Tariffs raise imported goods’ prices, prompting businesses to either absorb the additional fees or pass them on to consumers.

For shippers, this means higher transportation expenses and potential adjustments in pricing strategies to remain competitive in the market. Moreover, uncertainty surrounding tariff changes can lead to volatility in freight rates, making it challenging for shippers to forecast and budget effectively.

Supply Chain Disruptions

Tariffs can disrupt established supply chains, forcing shippers to reassess sourcing strategies and logistics networks. With increased costs and potential trade barriers, businesses may seek alternative suppliers or manufacturing locations to mitigate tariff impacts.

However, transitioning to new suppliers or routes can introduce complexities such as changes in lead times, quality control issues, and logistical challenges. As a result, shippers must carefully evaluate the trade-offs between cost, reliability, and flexibility in their supply chain decisions.

Market Competitiveness

Changes in tariffs can affect U.S. shippers’ competitiveness in domestic and international markets. Higher import costs may make imported goods less attractive to consumers, creating opportunities for domestic producers to gain market share.

Conversely, U.S. exports may face retaliatory tariffs from trading partners, reducing their competitiveness abroad. Shippers must assess the implications of tariff changes on their product pricing, market positioning, and overall business strategy to maintain competitiveness in a changing trade environment.

Diverse Shipping Solutions: Meeting Tariff Challenges

Within international trade and commerce, a diverse array of companies offer shipping solutions to meet the evolving needs of businesses navigating tariff challenges. In international shipping logistics, companies often turn to established providers like Transparent International NYC for their expertise. With a focus on transparency and reliability, they stand out among shipping providers, offering valuable support to businesses in need of shipping services.

While some companies focus on specific regions or modes of transportation, others provide comprehensive end-to-end solutions encompassing warehousing, customs clearance, and distribution. By tapping into the expertise and resources of these shipping providers, businesses can confidently navigate tariff complexities, ensuring the smooth flow of goods across international borders.

Regulatory Compliance

Navigating the regulatory landscape surrounding tariffs requires careful attention to compliance requirements and documentation procedures. Failure to comply with tariff regulations can result in penalties, delays in customs clearance, and disruptions to shipping operations.

Shippers must stay informed about changes in tariff classifications, duty rates, and trade agreements to ensure smooth cross-border transactions. Additionally, investing in technology solutions and leveraging automation can streamline the customs clearance process and enhance regulatory compliance.

Strategies for Mitigating Tariff Impact

Despite the challenges posed by new tariffs, there are strategies that U.S. shippers can adopt to mitigate their impact and maintain operational efficiency. Diversifying sourcing locations and suppliers can reduce reliance on regions subject to high tariffs, spreading risk across multiple markets.

Negotiating with suppliers for price adjustments or exploring alternative transportation modes and routes can also help offset increased shipping costs. Furthermore, investing in supply chain visibility and data analytics enables shippers to identify cost-saving opportunities, optimize routes, and improve inventory management.

Collaboration and Advocacy

Collaboration and advocacy within the industry can amplify the voice of U.S. shippers in shaping trade policies and tariff regulations.

Shippers participate in trade associations, industry forums, and advocacy groups. They collectively address concerns, share best practices, and influence policy decisions.

Engaging with policymakers and stakeholders is essential. It allows shippers to advocate for measures. These measures promote free and fair trade, mitigate tariff barriers, and support a conducive business environment for international commerce.

Economic Outlook and Uncertainty

The impact of new tariffs on U.S. shippers is intertwined with broader economic trends and geopolitical dynamics. Changes in trade policies, currency fluctuations, and global supply chain disruptions can amplify the effects of tariffs on shipping operations.

Moreover, geopolitical tensions and trade disputes between major economies introduce uncertainty into the market, making long-term planning and risk management challenging for shippers. Monitoring economic indicators, geopolitical developments, and regulatory changes is essential for adapting to evolving trade conditions and minimizing business risks.

Leveraging Technology for Streamlined Operations

In addition to partnering with shipping providers, businesses can harness the power of technology to streamline operations and mitigate the impact of tariffs. Advanced logistics platforms and supply chain management software offer real-time visibility into shipment status, inventory levels, and transportation routes. By leveraging data analytics and predictive modeling, companies can optimize shipping routes, minimize transit times, and reduce costs.

Furthermore, automation tools streamline customs documentation processes, ensuring compliance with tariff regulations, and expediting customs clearance. As businesses navigate the complexities of global trade, embracing technology-driven solutions empowers them to adapt to changing tariff landscapes and maintain competitiveness in the market.

Conclusion

In conclusion, the implementation of new tariffs has far-reaching implications for U.S. shippers, affecting costs, supply chain dynamics, and market competitiveness. Navigating this complex landscape requires proactive strategies, regulatory compliance, and collaboration within the industry.

By understanding the impact of new tariffs on shipping operations and adopting appropriate measures, shippers can mitigate risks, seize opportunities, and thrive in a rapidly changing global trade environment. Stay informed, stay adaptable, and remain resilient in the face of tariff-related challenges.

This was a guest post by Eric Laurence.

Author Bio

Meet Eric Laurence, an experienced industry analyst specializing in global trade and logistics. His expertise in writing informative content helps readers grasp the implications of tariff changes on shipping operations and strategic decision-making.

Keyword:
impact of new tariffs

The post Impact of New Tariffs on U.S. Shippers: What You Need to Know appeared first on Universal Cargo.

Supply chains have not had it easy for the past few years. Disruptions have grown in frequency and severity, and while issues may have come down from their pandemic-era highs, there are still challenges ahead. Current signs are pointing toward an oncoming diesel shortage.

Surviving disruption means adapting to whatever changes come. To do that, however, businesses must understand future possibilities and how these challenges could affect their broader supply chains. It’s not enough to know that diesel supplies may not match future demand. Organizations must determine what that would look like in their specific companies.

A Potential Diesel Shortage on the Horizon

The incoming diesel shortage is an issue of both supply and demand. On the supply side, diesel, heating oil, and gas inventories are below the 10-year seasonal average in North America, Europe, and Singapore. In the U.S. specifically, diesel stocks are at their lowest point for this time of year since the early 1950s.

This supply shortage stems from several factors. Most notably, Russia’s ongoing war against Ukraine has disrupted many significant diesel refineries in Europe. [Editor’s Note: Just as notable are the restrictive policies and executive orders of the Biden Administration on American oil drilling and gas production.] Recent attacks on shipping vessels in the Red Sea have had a similar effect, restricting the global oil trade.

Growing trends on the demand side will likely worsen the issue. Manufacturing activity is starting to ramp up after a period of less activity. Improving economic conditions, including declining interest rates, are fueling manufacturing growth. As a result, the Energy Information Administration expects diesel consumption to grow by 1.3% in 2024.

While that’s not a huge increase, it doesn’t reflect the whole picture, either. Manufacturing sectors in other nations are growing as well, leading to higher global demand. Even a modest consumption increase could have a significant impact on availability in light of the declining supply.

What It Means for Supply Chains

The most obvious effect of the diesel shortage on supply chains is higher operating costs. As demand grows and supplies shrink, fuel prices will rise. These higher expenses impact more than just refueling trucks, too.

Diesel powers the majority of commercial energy operations, so higher diesel prices will mean rising expenses across the board. Manufacturing costs will increase as production facilities need diesel to generate the large amounts of energy they use. These expenses, combined with higher transportation costs, could add up to significant economic strain.

Depending on the extent of this shortage, it could have even more disruptive consequences. As demand rises and supplies continue to shrink, some organizations may be unable to get the diesel they need, even if they can afford it. Consequently, they may have to pause operations in some areas.

These cutbacks could mean transportation companies run fewer routes, leading to extensive shipping delays. Alternatively, some manufacturers may reduce their output to lower their energy consumption, leading to potential shortages. In less dramatic scenarios, organizations may have to pause or delay expansion initiatives needed to keep up with rising customer demand, creating lost business opportunities.

What Can Businesses Do About It?

After the disruptions of the COVID-19 pandemic, organizations should have learned that they must anticipate and prepare to withstand supply chain challenges before they arise. Given the growing likelihood of a diesel shortage in the coming years, businesses should take several steps.

Organizations should plan to reduce their diesel consumption where possible. Using Internet of Things (IoT) sensors to monitor and minimize energy expenditures in manufacturing is a good start. 

Fleets can use AI route planning software to improve travel efficiency while completing the same amount of work. For example, a case study showed AI technology saves UPS 10 million gallons of fuel annually.

Reducing reliance on fossil fuels in the long term could be an important strategy, too. Fleet electrification could help offset diesel shortages and price spikes. Using biodiesel is another promising alternative — one that may not require new vehicles. While this shift may not yield immediate results, it’s a long-term goal that could mitigate similar situations in the future.

Supply Chains Must Prepare for Disruption

Businesses should keep a close eye on diesel supply and demand shifts to respond to potential shortages accordingly. Even if no widespread price hikes or shortages occur, adjusting operations to make supply chains more resilient is still the best way forward.

Supply chain disruptions are inevitable to some extent. However, staying on top of these trends and embracing more resilient business practices will mitigate their impact, now and in the future.

This was a guest post by Ellie Gabel.

Author Bio

Ellie is a freelance writer who loves exploring the latest advancements in tech and science and how they’re impacting the world we live and work in. She’s also the associate editor of Revolutionized.com.

The post Assessing the Impact of a Possible Diesel Shortage on Global Supply Chains appeared first on Universal Cargo.

Smoothly navigating international trade requires mastering your approach to using Incoterms to define your shipping terms and responsibilities. Therefore, let’s explore the world of Incoterms, unlocking their power to streamline your global business operations and offering clarity in your import and export endeavors.

Understanding Incoterms

When doing international shipping, understanding Incoterms is essential. These three-letter abbreviations, like FOB and CIF, serve as codes that define responsibilities and costs in a trade transaction. Incoterms specify who is responsible for transportation, insurance, and customs clearance tasks. By grasping the significance of Incoterms, you can avoid misunderstandings, reduce risks, and negotiate more effectively with your trading partners.

These terms help clarify global commerce, safeguarding buyers’ and sellers’ understanding of their roles and obligations. Thus, whether you’re an importer or exporter, mastering using Incoterms guarantees successful international trade.

Key Incoterms Explained: EXW and FOB

Two key Incoterms, EXW (Ex Works) and FOB (Free On Board) play significant roles in international trade. EXW places the responsibility on the buyer, as the seller’s obligations end once the goods are made available at their premises. This option gives buyers control but requires more logistics effort. In contrast, FOB transfers responsibility to the seller until the goods are loaded onto the ship.

FOB is commonly used for sea freight, and it simplifies the process for buyers by involving the seller in the transportation process. When deciding between EXW and FOB, consider factors like your familiarity with the shipping process, logistical capabilities, and risk tolerance. EXW may suit experienced importers, while FOB provides a smoother transition for newcomers to international trade, making choosing the right Incoterm for your specific situation crucial.

Key Incoterms Explained: CIF and DDP    

Two important Incoterms in international trade are CIF (Cost, Insurance, and Freight) and DDP (Delivered Duty Paid). CIF places the seller’s responsibility to cover transportation and insurance costs until the goods reach the port of destination. This option is beneficial for buyers as it minimizes risk. On the other hand, DDP makes the seller responsible for all costs, including duties and taxes, until the goods are delivered to the buyer’s location.

DDP offers convenience to the buyer but requires significant effort from the seller. When deciding between CIF and DDP, consider factors like your familiarity with international trade regulations, your ability to handle customs clearance, and your risk tolerance. CIF is suitable when you want to control the transportation and insurance aspects, while DDP simplifies the process for buyers by offering a comprehensive solution.

Avoiding Common Pitfalls

Avoiding common pitfalls when you use Incoterms to define your shipping and responsibilities is important for successful logistics risk mitigation. Misunderstandings, documentation errors, and misapplied Incoterms can lead to costly disputes. Establishing clear communication with your trading partners to avoid these issues is important. Verify that both parties fully understand the chosen Incoterms and their respective responsibilities. Thoroughly document all aspects of the transaction, including contracts, invoices, and shipping records.

In addition, stay informed about ever-evolving trade regulations and customs procedures to prevent compliance issues. Finally, consider working with experienced professionals or logistics experts who can offer guidance in navigating complex international trade scenarios. By proactively addressing these common pitfalls, you can reduce risks, improve efficiency, and build stronger relationships with your international business partners, certifying the smooth flow of goods across borders.

Negotiating Incoterms in Your Contracts 

Negotiating Incoterms in your contracts is an important step in establishing clear terms and expectations in international trade. When finalizing agreements with your trading partners, engaging in open and transparent discussions regarding the chosen Incoterms is essential. Check that both parties are on the same page, fully understanding their roles and responsibilities throughout the shipping process.

Seek legal counsel to draft contracts that accurately reflect the agreed-upon Incoterms and mitigate any potential disputes if necessary. Effectively negotiating Incoterms can help prevent misunderstandings, reduce risks, and lead to smoother international trade operations. Clear and well-negotiated Incoterms strengthen partnerships, fostering trust and cooperation in the global business landscape! Therefore, invest the time and effort needed to get your Incoterms right in your contracts, and it will pay off in the long run.

Use Incoterms to Define Your Shipping Terms and Responsibilities: Logistics and Storage Solutions

Logistics and storage play an important role in supporting the use of Incoterms in international trade. That is where a trusted partner like Helix Moving & Storage DC can make a significant difference. They offer top-notch moving and storage services tailored to the unique needs of businesses engaged in global trade. At the same time, they provide state-of-the-art storage facilities in DC, and not only, with climate control and 24/7 security, providing safety and integrity for your products.

However, when selecting storage and logistics solutions for your goods, also consider factors such as the location of the storage facility, security measures, and accessibility. Whether temporarily storing inventory or needing assistance with transportation and warehousing, a good partner can always help streamline your supply chain.

Documenting Incoterms in Your Transactions     

Properly documenting Incoterms in your transactions is fundamental to improving your import and export logistics. Including these terms in your contracts, invoices, and shipping documents helps all parties understand their roles and responsibilities. Accurate documentation helps prevent disputes and facilitates the smooth movement of goods across international borders.

In addition, maintaining organized records of past transactions can be invaluable for future reference and analysis. You demonstrate professionalism and contribute to efficient and compliant international trade operations by consistently documenting Incoterms in your transactions. Make it a standard practice in your business, and you’ll find that it enhances your import and export logistics.

Using Technology to Manage Incoterms

Leveraging technology to use Incoterms is a great approach in today’s global marketplace. Advanced software solutions can streamline choosing and implementing Incoterms for international trade transactions. These tools help you select the most suitable terms and automate tasks like generating compliant documentation. Technology enhances the efficiency and accuracy of your supply chain operations by reducing manual work and the risk of errors.

Additionally, these platforms often provide access to up-to-date information on trade regulations and industry best practices, keeping you compliant. Embracing technology in Incoterms management guarantees you stay competitive, minimize risks, and optimize your import and export logistics.

The Boons of Mastering Incoterms

Harnessing the knowledge of how to use Incoterms to define your shipping terms and responsibilities is pivotal for success in international trade. Making solid choices and having mutual understanding with your partners can minimize risks, reduce disputes, and optimize your import and export logistics. So, embark on this journey confidently, knowing that mastering Incoterms will propel your global business endeavors toward prosperity.

This was a guest post by Juan Turcios.

Author Bio

Juan Turcios is a seasoned expert in the transportation and moving industry, with a keen focus on the intricacies of international shipping and logistics. His extensive experience in the field is reflected in his in-depth knowledge of Incoterms and their practical applications in global trade. Juan’s insights are invaluable for businesses that streamline their import and export operations, ensuring compliance and efficiency in a complex international market.

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The post How to Use Incoterms to Define Your Shipping Terms and Responsibilities appeared first on Universal Cargo.

The seamless movement of goods across international boundaries is crucial for businesses involved in global commerce. Among the many terms and regulations controlling these transactions, “Freight on Board” (FOB) is a critical idea that defines the crucial point at which ownership and responsibility for goods shift between sellers and buyers.

This guide intends to simplify the complexities of FOB, serving as a helpful resource for importers and exporters alike. From its basic meanings to the subtle differences between FOB Origin and FOB Destination, let’s explore the core principles that underpin this international trade term.

Key Takeaways

• Crucial for importers and exporters, FOB outlines the location where the buyer assumes shipping costs and risks, influencing trade agreement terms. Clarity minimizes uncertainty, ensuring a smooth transfer and enhancing the efficiency of global trade.
• FOB terms play a pivotal role in a sales contract, necessitating a precise definition of ownership transfer, responsibilities, and the allocation of risks.
• Strict adherence to FOB terms is paramount, providing clarity on financial implications in unforeseen events during transportation and ensuring effective risk mitigation strategies are in place.

Definition of Basics of FOB

It is an international trade term indicating the starting point at which responsibility and ownership for goods move from the seller to the buyer during shipment. It is also known as Free on Board. The terms are used interchangeably to describe a shipping agreement and signify the same rules and conditions regarding the transfer of risk and costs in international transactions.

Understanding FOB is crucial for importers and exporters as it outlines essential aspects of the shipping and delivery process. In global trade, FOB defines the location where the buyer pays the freight shipping costs and risks associated with transporting the goods, influencing the terms and conditions of the trade agreement.

This clarity minimizes uncertainty, ensuring a smooth transfer of goods and facilitating transparent negotiations. Determining ownership and responsibility at a defined location enhances the efficiency and reliability of global trade transactions.

FOB Origin Vs FOB Destination

FOB Origin and FOB Destination represent two variations of the FOB international shipping term, specifying when ownership and responsibility for goods transfer between the seller and the buyer.

FOB Origin

In FOB Origin transactions, the buyer assumes control of freight costs, and risks associated with transportation from the moment of loading. This arrangement gives the buyer more control over the shipping process, carrier selection, and shipment timing, influencing the overall logistics strategy.

Ownership Transfer

It occurs when the shipping goods are loaded onto the carrier at the seller’s premises. At this point, the buyer assumes ownership, taking on transportation’s associated costs and risks. This transfer outlines when the buyer gains control over the shipped goods, influencing logistics decisions and contractual obligations in the trade transaction.

Responsibilities

In FOB Origin transactions, the seller’s responsibilities include:

• Preparing and packaging the goods for export.
• Loading the goods onto the specified carrier at their premises.
• Completing export customs clearance.

On the other hand, the buyer assumes responsibilities such as

• Paying for transportation costs.
• Managing import customs clearance.
• Unloading and transporting the goods from the destination port onwards.

This division of duties traces each party’s distinct responsibilities in facilitating the seamless movement of goods from the seller’s warehouse to the buyer.

FOB Shipping Point

Under FOB Origin, the buyer has the majority of the shipping control. The buyer takes responsibility for the shipping process as ownership and responsibility are transferred when the seller’s location is where the carrier is loaded with the goods. This involves planning the shipment, selecting the carrier, and deciding on the routing. The buyer’s influence extends to logistics decisions, and freight charges, allowing for strategic choices in transportation methods and ensuring alignment with their specific requirements and preferences.

FOB Destination

In FOB Destination transactions, the seller retains control, bears costs, and assumes risks associated with transportation until the goods reach the agreed-upon destination. With this arrangement, the seller has greater control over the logistics planning, carrier selection, and shipping process until the items arrive at the buyer’s location.

Ownership Transfer

It occurs when the goods reach the buyer’s specified destination. Until this point, the seller retains ownership, covering the associated costs and risks of transportation. The transfer marks the exact moment in the transaction where the buyer takes custody of the received items, affecting contractual obligations and logistical choices.

Responsibilities

In FOB Destination transactions, the seller’s responsibilities include:

• Preparing and packaging the goods for export.
• Loading them onto the specified carrier.
• Completing export customs clearance.

Additionally, the seller is responsible for transportation costs, import customs clearance, and the unloading and transportation of the goods from the destination port to the buyer’s specified location. This distribution of responsibilities delineates each party’s distinct roles in ensuring the secure and efficient delivery of goods to the buyer’s destination.

FOB Shipping Point

In FOB Destination, shipping control primarily rests with the seller’s shipping dock. Until the goods reach the buyer’s specified destination, the seller maintains authority over the shipping process, including carrier selection, routing, and overall logistics planning.

The seller’s influence extends until the goods reach the agreed-upon destination. This arrangement allows the seller to strategically manage the transportation process and ensure the secure and timely delivery of the goods to the buyer’s designated location.

FOB and Incoterms

Apart from FOB, there are other International Commercial Terms (Incoterms) that you need to learn about. These terms are a universal language, providing clarity and consistency in trade agreements. These standardized terms, published by the International Chamber of Commerce, define the rights and responsibilities of buyers and sellers in international transactions, resolving risks and uncertainties.

FOB vs EXW

FOB designates ownership transfer when goods are loaded on the carrier at the seller’s location, with the buyer taking responsibility for the shipping. In contrast, EXW (Ex Works) places maximum responsibility on the buyer, as the ownership transfers at the seller’s premises, and the buyer manages the entire shipping process. The buyer pays the costs and covers the risks from the point of origin to the destination.

FOB vs CIF

FOB transfers ownership at the loading point onto the carrier at the seller’s location, with the buyer taking responsibility for shipping. In CIF (Cost, Insurance, Freight), ownership transfers when the ship’s rail goods are loaded, but the seller covers main carriage costs and provides insurance until the destination port. With a CIF agreement, the seller has more responsibility, paying for the transport costs and insurance, influencing cost distribution and risk allocation.

FOB vs DAP

FOB transfers ownership, with transport cost and insurance responsibilities, at loading on the carrier at the seller’s location, with the buyer taking control. DAP, however, shifts ownership and responsibility at the buyer’s specified destination, while the seller pays all the costs and risks until unloading. With FOB, the buyer takes responsibility. Meanwhile, DAP places more responsibility on the seller for the transport costs, streamlining the delivery process to the buyer’s designated destination.

Benefits of FOB

The use of FOB in international shipping offers several benefits for both sellers and buyers:

• Clear Allocation of Freight and Shipping Costs. FOB delineates costs, specifying when the buyer assumes responsibility for transportation expenses. This transparency aids in budgeting and financial planning.
• Control Over Transportation. FOB allows the buyer to control the shipping process, carrier selection, and the timing of shipments. This can offer benefits to businesses with particular logistics needs.
• Flexibility in Shipment Carrier Option. FOB enables the buyer to choose the carrier based on their preferences and requirements, providing flexibility in managing the transportation of goods.
• Risk Mitigation. FOB helps in clarifying the transfer of risks. Once ownership transfers, any damages or losses during transportation are typically the buyer’s responsibility, reducing ambiguity and potential disputes.
• Simplified Logistics Planning. The clear transfer point in FOB simplifies logistics planning for both parties, making it easier to coordinate the shipment and ensuring a smoother process.
• Cost-Efficiency. FOB can lead to cost savings for buyers who choose cost-effective shipping methods and carriers based on their specific needs.
• Negotiable Terms. Negotiations between the buyer and the seller determine the FOB terms, allowing them to tailor the agreement to their specific circumstances and preferences.
• Sustainability for Certain Industries. FOB is particularly suitable for industries where the buyer understands transportation logistics, allowing them to optimize shipping processes and costs.

To harness the advantages of FOB, one must engage in meticulous negotiation and take into account the distinct needs and preferences of both parties participating in the global trade transaction.

FOB and Insurance

FOB in global trade does not inherently include insurance coverage for the goods transported. While FOB outlines the transfer of ownership and responsibility, it is crucial to note that insurance is not automatically provided. Specifying insurance paid separately on freight invoice is essential to safeguard against potential risks, damages, or losses when transporting goods.

This separation allows parties to tailor insurance coverage to their needs, ensuring comprehensive protection. Please clarify insurance terms to ensure the buyer can avoid unforeseen events. Therefore, explicit agreement on insurance details is essential for a well-defined and secure global trade transaction under FOB terms.

Documentary Requirements

In FOB transactions, several key shipping documents are vital in facilitating the smooth transfer of goods from the seller to the buyer. Two crucial documents in this context are the Bill of Lading (B/L) and the Commercial Invoice.

Bill of Lading

The Bill of Lading is a crucial document issued by the arrival port to the carrier or its representative, confirming the receipt of goods and detailing their type, quantity, and condition.

Functions

• Receipt. It is a receipt for the goods, confirming that they are now on the carrier.
• Document of Title. Acts as a document of title, allowing the buyer to claim the goods upon arrival at the destination’s shipping port.
• Transfer of Ownership. The transfer of the Bill of Lading may signify the transfer of ownership rights.

Commercial Invoice

The Commercial Invoice is a document issued by the seller, providing a detailed account of the goods being sold.

Functions

• Identification. Identifies the buyer and seller, specifying the goods’ quantity, description, and value.
• Customs Clearance. Aids in customs clearance by providing the necessary tax assessment and compliance information.
• Payment. Serves as a basis for payment, enabling the buyer to understand the costs associated with the purchased goods.

Shipping Costs with FOB

In an FOB arrangement, the allocation of shipping costs between the seller and the buyer depends on whether it’s FOB Origin or FOB Destination:

FOB Origin

• Seller’s Responsibility. The seller bears the costs related to transporting the goods to the port of shipment, covering expenses such as inland transportation, export duties, and loading onto the vessel.
• Buyer’s Responsibility. The buyer takes on the responsibility and costs of loading the goods onto the vessel. This includes ocean freight, unloading costs at the destination port, import duties, and further transportation to the final destination.

FOB Destination

• Seller’s Responsibility. The seller assumes the expenses for transporting the goods to the destination port, encompassing inland transportation, export duties, and loading onto the vessel.
• Buyer’s Responsibility. The buyer assumes responsibility and covers the costs from the destination port onward. This includes ocean freight, unloading costs, import duties, and transportation to the final destination.

Key Considerations

Negotiability of FOB Terms

Negotiable between the buyer and the seller, FOB terms offer flexibility to customize the agreement according to their needs. The parties can collaboratively determine various aspects, such as the precise point of transfer, the selection of the carrier, and specific responsibilities. This negotiation allows for a customized arrangement that aligns with both parties’ preferences and logistical considerations.

Legal Implications and Obligations

Comprehending the legal ramifications of FOB terms is essential to prevent disputes and ensure a seamless international trade transaction. These legal considerations include the following:

• Contractual Agreement. FOB terms are typically outlined in a sales contract. Both parties must clearly define their obligations, responsibilities, and the specific terms governing the transfer of ownership and risk.
• Risk of Loss. FOB outlines the shift of the risk of damage or loss of goods to the buyer from the seller. Adhering to this agreement is crucial to ascertain which party assumes the financial consequences of any unforeseen events during transportation.
• Customs Compliance. The buyer and seller must comply with customs regulations and documentation requirements. Please do so to avoid delays, fines, or other legal issues.
• Incoterms Compliance. FOB is one of the Incoterms published by the International Chamber of Commerce. Adhering to the agreed-upon FOB terms ensures compliance with international trade standards and regulations.
• Documentary Requirements. Proper documentation, including the Bill of Lading and Commercial Invoice, must be prepared and exchanged by the FOB terms to facilitate the smooth movement of goods and customs clearance.
• Dispute Resolution. Clear FOB terms can serve as a basis for resolving disputes. If disagreements arise, parties can refer to the agreed-upon terms to find resolutions, preventing protracted legal battles.

Both parties must fulfill their obligations, mitigate risks, and maintain a positive and trustworthy business relationship to ensure clarity, transparency, and legal compliance in FOB agreements.

Final Thoughts

Understanding freight on board or free on board (FOB) is essential for importers and exporters in the complex world of global trade. As businesses delve into the negotiation process, the flexibility of FOB terms allows tailoring agreements to align with unique circumstances and preferences.

Legal implications, documentary requirements, and dispute-resolution mechanisms form the pillars of a secure and transparent FOB agreement. In conclusion, armed with this comprehensive guide, businesses can confidently embark on international trade journeys, leveraging FOB’s power for efficient, reliable, and legally compliant global transactions.

This was a guest post by Diana Zheng.

Author Bio

Diana leads the growth marketing initiatives at Stallion Express. As a personal trainer turned digital marketer, Diana is obsessed with equipping eCommerce entrepreneurs with everything they need to scale their online businesses. You can catch her doing yoga or hitting the tennis courts in her spare time.

The post Freight on Board (FOB) Explained: A Comprehensive Guide for Importers and Exporters appeared first on Universal Cargo.

Embarking on the global trade journey brings unparalleled opportunities, but it’s not without its challenges. International shipping comes with its own set of risks that can jeopardize your cargo. From damaged goods to the risk of theft, the hazards are real.

So, in this guide, we’ll show you how to steer clear of these risks and insure your cargo for the better. We’ll also share a step-by-step guide on how to choose the right insurance partner.

Let’s dive in!

Potential Risks & Threats to Cargo

An uninsured cargo is always vulnerable to these threats and risks:

1.   Damaged Cargo

Shipping across borders exposes cargo to handling uncertainties, where mishandling or unforeseen incidents can lead to damage. Fragile items (such as glassware, musical instruments, technology products, etc.) are particularly at risk. 

2.   Lost Cargo

The vast expanse of international routes increases the likelihood of cargo going astray. Sometimes shipments are lost completely — and sometimes, misplacement could lead to delayed arrival on destination. If the items being shipped are time-sensitive (such as eatables), they may expire due to the delay .

3.   General Average

General average basically refers to a large loss or a deliberate loss during shipment. For example, when a fire occurs, lots of goods may be lost. Similarly, in certain situations — some goods may be offboarded to secure the rest of the goods for a safe journey ahead. These situations may occur due to legal issues, natural accidents, or as a consequence of human error. 

4.   Stolen Products

Theft is an unfortunate reality in the logistics landscape. Whether due to organized crime or opportunistic theft, cargo security is paramount. This is particularly true for small-sized products like Peshawari chappals, shawls, spoons, or other such good that are being transported in quantities of hundreds or thousands. It’s difficult to track if a pair of Peshawari chappal or one shawl is stolen. But if small thefts occur at multiple checkpoints, the loss can be significant.

How Does Insurance Help?

1.   Peace of Mind

In the unpredictable world of international shipping, peace of mind is a priceless commodity. Insurance alleviates the stress of potential financial losses, allowing businesses to focus on growth and expansion without the constant worry of unforeseen circumstances.

2.   Protects Cash Flow

Unforeseen events can disrupt cash flow and strain financial resources. Cargo insurance acts as a financial safeguard. It ensures that your business remains resilient in the face of unexpected challenges, along with protecting your bottom line and financial stability.

3.   Acts as a Safety Net

According to the NCSC  (National Cargo Security Council), the global financial loss due to damaged freight is over $50 billion. Most shipment carriers only offer a compensation of $2 per pound, meaning you’ll only get $2,000 for a shipment of 10,000 pounds. It’s nearly nothing!

Insurance, on the other hand, guarantees that you retrieve an almost equivalent amount. Even if the loss occurs, the insurance acts as a safety net!

4.   Safeguards Against Theft

Theft is a pervasive risk in international shipping. Cargo insurance serves as a robust defense against theft. It offers financial compensation that enables businesses to recover swiftly and maintain the integrity of their supply chain.

How to Insure Cargo?

As promised, here’s a practical guide to help you ensure that your cargo is adequately protected:

1. Assess Your Needs

Before diving into the insurance market, conduct a comprehensive assessment of your cargo and shipping requirements. Consider the nature of your products, shipping routes, and the potential risks involved. This foundational step will guide you in selecting the most suitable insurance coverage for your specific needs.

2. Understand Insurance Types

Cargo insurance comes in various forms, each tailored to specific risks. Common types include:

• All-Risk
• Named Perils
• Total Loss Only

Familiarize yourself with these options and choose coverage that aligns with the unique challenges your cargo may face during transit.

3. Work with Reputable Insurers

Research and choose insurers with a proven track record in cargo insurance. Look for companies with a global presence and a history of efficiently handling claims. Read customer reviews and seek recommendations to ensure the credibility and reliability of your chosen insurer.

4. Negotiate Terms and Coverage

Engage in open and transparent discussions with your insurance provider. Clearly communicate your cargo’s specifics and negotiate terms that offer comprehensive coverage.

Be mindful of deductibles, coverage limits, and potential exclusions that could be applicable. Customizing your insurance policy to fit your unique needs is key to maximizing its effectiveness.

5. Implement Risk Management Practices

While insurance provides financial protection, implementing proactive risk management practices is equally crucial. So, consider investing in robust packaging, proper labeling, and secure loading practices to minimize the likelihood of damage or loss.

6. Document and Communicate Clearly

In order to be able to claim your insurance, you need to have documented proof. So, maintain accurate records of your shipments, including invoices, packing lists, and shipping documents.

Communicate clearly with your insurer throughout the process. Make sure you provide timely and detailed information in the event of a claim.

8. Monitor and Evaluate Performance

Regularly monitor the performance of your chosen insurance coverage. Evaluate its effectiveness in mitigating risks and providing the expected financial protection.

If necessary, be prepared to adjust your insurance strategy to better align with the evolving demands of your business and the global shipping landscape.

Final Words

When it comes to global trade, securing your cargo with insurance is not just a choice; it’s a strategic imperative. It can effectively tackle unpredictable challenges and serve as your guardian.

Before we sign off, here’s a bonus tip: focus on cultivating robust relationships with your logistics partners; a collaborative approach enhances the protective shield of insurance!          

This was a guest post by Arslan Hassan.

Author Bio:

Arslan Hassan, an electrical engineer and the founder of The Pro Linkers, has assisted numerous businesses in building a robust online presence. His passion lies in facilitating the online growth of brands and companies.

The post International Shipping: Why Insuring Your Cargo Is Important? appeared first on Universal Cargo.

Myanmar’s maritime landscape boasts seven major ports, each playing a vital role in the nation’s international trade. The primary gateway, the Port of Yangon, shoulders approximately 90% of Myanmar’s international maritime trade, strategically positioned at the confluence of the Yangon River, Pazundaung Creek, and Bago River.

Amidst these ports, the Myanmar International Terminal, known as Thilawa Port, stands out as the largest terminal in the country. Situated near the Thilawa Special Economic Zone, it accommodates RoRo ships and container vessels, handling diverse cargo types with cutting-edge port equipment.

Despite these advancements, Myanmar’s shipping industry has encountered significant challenges since 2020. Widespread protests and a military coup led to suspended shipping lines, causing container shipment delays and reducing imports. Logistic hurdles surfaced due to insufficient labor at shipping ports, hindering the movement of containers.

As of March 2021, container exports decreased by roughly 70%, reflecting the impact of these disruptions. Exports in Myanmar also witnessed a decline from the first to the second quarter of 2023, emphasizing the ongoing challenges faced by the shipping industry.

For international shippers engaging with Myanmar, it’s crucial to understand the diverse cargo handled at these ports. From rice and coal to metal, general cargo, and RoRo shipments, the range of goods transiting Myanmar’s ports is extensive.

In terms of vessels, a total of 23 ships, including container ships, general cargo ships, tankers, and those carrying palm oil, frequent the ports. Despite challenges, over 55% of cargo ships arrive on time, highlighting the resilience of the shipping sector amidst adversity.

However, payment problems add an additional layer of complexity. Government actions, including hoarding diesel imports, have led to power shortages, while the deepening fuel crisis and rising costs pose challenges for companies involved in the shipping industry.

To address these issues, international shipping companies must navigate the evolving landscape of Myanmar’s ports. Shifting from ocean freight to inter-modal transportation, leveraging strategic storage facilities, and understanding the intricacies of payment structures can contribute to smoother operations in this dynamic environment.

As Myanmar strives to overcome its challenges, collaboration between international shipping entities and local stakeholders becomes imperative. By adapting to the changing dynamics and supporting the resilience of Myanmar’s shipping sector, companies can navigate the complexities and contribute to the nation’s economic recovery.

This was a guest post by James Raussen, Eaint Hmue Htut, and Ye Yint Zaw Win.

Author Bios

Eaint Hmue Htut, is a year 12 student at Kings Yangon International School in Yangon. Her research and interests include Global Affairs, and Race Cars. 

Ye Ying Zaw Win is also a year 12 student at Kings Yangon International School in Yangon, Myanmar. He enjoys Economics, Architecture, and an avid singer when not studying. 

Both are Level A students (the UK terminology for Advanced Placement), 18 years of age, and plan on studying in the U.K. hopefully next year. 

The post Navigating Myanmar’s Maritime Challenges: Insights for International Shipping appeared first on Universal Cargo.

Container ships are the unsung heroes of global trade, transforming the movement of goods worldwide. Their role is vital, as these colossal vessels serve as the backbone of international commerce, ferrying goods across oceans efficiently. However, their story isn’t just about moving cargo; it’s about adaptation and change. The evolution of container ship design has been profound and continues to shape global trade today.

In this blog, we delve into how these design changes aren’t merely about bigger ships but about revolutionizing international trade.

The Birth of Container Shipping

Container shipping emerged in the mid-20th century, revolutionizing global trade practices. Its origins can be traced back to the 1950s when entrepreneur Malcolm McLean envisioned a more efficient cargo transport system. He introduced the concept of using standardized containers for transporting goods, a departure from the traditional “break-bulk” method. This shift marked a significant departure from loading individual items onto ships, transforming how goods were packed, loaded, and shipped.

The pivotal moment arrived in 1956 when McLean’s company, SeaLand, successfully loaded fifty-eight containers onto a tanker. It was that moment, Logicstics argues, that inaugurated the era of container shipping.

The standardization of container sizes soon followed, fostering compatibility across various transportation modes – ships, trucks, and trains. This innovation drastically reduced loading time, labor costs, and pilferage while exponentially increasing cargo capacity.

As a result, ports worldwide began adapting to accommodate these standardized containers, igniting a rapid evolution in maritime logistics. The introduction of container shipping fundamentally altered the landscape of international trade, fostering efficiency and propelling globalization to unprecedented heights.

The Evolution of Container Ship Design

This paradigm shift was gradual, however. In many ways, it offered a response to changing needs and circumstances and a feasible way forward for others.

Efficiency and Size

For one, this gradual evolution showcases a remarkable transition from older models to the cutting-edge vessels of today. Early container ships were relatively smaller, with limited carrying capacities compared to the massive giants dominating modern maritime landscapes. Older designs emphasized functionality over size, lacking the colossal dimensions seen in today’s vessels.

However, technological strides have redefined these ships, introducing innovations that boost efficiency and capacity. Advanced propulsion systems, automated cargo handling, and improved navigation technologies have significantly enhanced the operational efficiency of modern vessels.

Here, one standout trend in this evolution is the rise of larger container ships. These mammoth vessels, capable of carrying staggering numbers of containers, have reshaped the industry. While their size offers economies of scale and reduces shipping costs per container, it also presents logistical challenges. For instance, larger ships demand deeper ports and specialized infrastructure. As such, they require significant adaptations in global shipping routes and port facilities. Still, the shift towards these colossal vessels reflects a continuous quest for enhanced efficiency and cost-effectiveness in the industry.

Environmental Considerations and Sustainability

Second, the evolution of container ship design has brought substantial environmental concerns to light. These massive vessels emit considerable amounts of greenhouse gases, contributing significantly to carbon footprints in the maritime industry. Moreover, increased cargo capacity exacerbates the strain on marine ecosystems, potentially leading to higher pollution levels and disturbances to marine life.

In order to counter these environmental impacts, the industry has steered toward sustainability – initiatives like slow steaming aim to cut fuel consumption and emissions. Additionally, there’s a growing emphasis on cleaner propulsion technologies such as LNG (liquefied natural gas) and hydrogen-powered engines. Innovations like hull coatings that reduce drag and the adoption of alternative fuels align with the industry’s commitment to sustainability. Stricter regulations, like the International Maritime Organization’s (IMO) sulfur emission cap, have also spurred the implementation of eco-friendly technologies and practices.

Regulatory Changes

And third, on the note of regulations, this evolution is tightly interwoven with a wave of regulatory changes. In many cases, such regulations directly inform the future of ocean and air freight.

Global institutions like IMO have implemented stringent regulations to curb emissions and enhance environmental sustainability in the maritime industry. Initiatives like the IMO’s MARPOL Annex VI, which sets limits on sulfur emissions from ships, exemplify this shift. These regulations require vessels to use cleaner fuels or install exhaust gas cleaning systems (scrubbers) to reduce harmful emissions. Moreover, the Ballast Water Management Convention aims to prevent the spread of invasive species by regulating ships’ ballast water.

The Impact of the Evolution of Container Ship Design on Global Trade

Such a drastic shift has, understandably, impacted global trade as well. While the ways in which it has done so are numerous, the main ones are as follows.

Economic Impact and Trade Dynamics

For one, this trajectory has significantly enhanced global connectivity. Advanced designs have facilitated the establishment of more efficient trade routes, drastically reducing shipping times. For instance, the introduction of the Suez Canal in 1869 and the Panama Canal in 1914 revolutionized global trade. They have done so by creating shorter routes between major trading regions, significantly impacting transit times and costs.

Moreover, the advent of larger container ships has allowed for economies of scale, reducing shipping costs per container. These cost efficiencies have made international trade more accessible for businesses, enabling them to expand their markets and supply chains across continents. Additionally, modern container ship designs have encouraged direct connections between previously isolated ports, fostering trade growth between regions.

Cost Efficiency

In addition, on the note of cost efficiency, container ship design has significantly bolstered cost efficiency in global trade. The introduction of larger vessels has notably reduced shipping costs per container. For instance, the deployment of Triple-E class container ships by Maersk Line has led to a reduction in cost per container by around 20% compared to older vessels. These ships accommodate more containers, leveraging economies of scale and substantially decreasing the cost of transporting goods across international waters. In this regard alone, the evolution of container ship design has had a profound impact.

Furthermore, the efficiency gains from technological advancements, such as improved fuel efficiency and automated systems, have contributed to cost reductions. These enhancements streamline operations, minimize fuel consumption, and decrease labor expenses, ultimately benefiting businesses engaged in import and export activities.

Market Adaptations

Finally, the market at large has adapted with remarkable efficiency to these changing tides. Businesses the world over have swiftly adapted, as the trend toward larger vessels has prompted adaptations in supply chain logistics.

Initially, companies adjusted their inventory management systems to accommodate larger shipment sizes and optimize logistics operations. This includes smaller players and international juggernauts like Walmart and Amazon alike. Additionally, businesses have strategically positioned distribution centers and warehouses closer to ports capable of handling these larger ships. In turn, they’ve reduced transportation costs and improved overall efficiency.

Moreover, the increased capacity of container ships has enabled companies to engage in bulk shipping. In turn, this has allowed for more competitive pricing and improved inventory management. E-commerce giants have capitalized on these changes as well. By leveraging the capacity of these ships, they now move larger quantities of goods, meeting the growing demand for global online retail.

Conclusion

In closing, the evolution of container ship design is a story of adaptation and change. Today, it is a testament to its transformative power over global trade. From humble beginnings to the colossal vessels navigating the seas today, it has reshaped the very foundations of international commerce. It’s not merely about ships; it’s about revolutionizing how goods traverse the globe.

Looking ahead, this trajectory seems set to continue. Ongoing advancements in container ship design will likely continue to steer the course of global trade. The relentless pursuit of efficiency, sustainability, and technological innovation will shape the future of international commerce for years to come. As businesses adapt and industries evolve, this ongoing evolution will continue to foster a connected and efficient global marketplace.

This was a guest post by Dylan Jacobson.

Author Bio

Dylan Jacobson is an SEO writer, economist, and avid tech enthusiast. He frequently writes about the relocation and logistics industries, as well as the common ground between the two in an increasingly digitized world.

The post The Evolution of Container Ship Design and Its Impact on Global Trade appeared first on Universal Cargo.

Navigating the complexities of international trade requires a strategic approach to handling unexpected ocean freight issues. In a world where global supply chains play a pivotal role, businesses must be prepared to address disruptions efficiently and proactively. So, let’s get into the strategies you can implement to ensure the flow of goods even when faced with challenges!

1. Understanding Ocean Freight Risks

Understanding ocean freight risks is crucial for businesses engaged in international trade. While ocean freight offers cost-effective transportation, it’s not without its challenges. Factors like weather-related disruptions, port congestion, and trade regulations can lead to having to handle unexpected ocean freight issues. So, to ensure the long-term longevity of ocean freight as a viable option, businesses must proactively manage these risks.

2. Building Resilience in Supply Chains

Building resilience in supply chains is paramount to smoothly handling unexpected ocean freight issues. To achieve this, diversifying supplier and sourcing options is key. Relying on a single source for critical components or materials can leave a supply chain vulnerable to disruptions.

Implementing just-in-time inventory management is another effective strategy, reducing the need for excessive stockpiles while ensuring a steady supply.

Additionally, establishing strong vendor relationships fosters trust and flexibility in times of crisis, facilitating faster problem-solving and smoother operations.

3. Effective Communication Strategies

Effective communication strategies are the lifeblood of a resilient supply chain, and it’s crucial to note that this applies throughout your supply chain. Clear and transparent communication is essential whether you’re coordinating with suppliers, manufacturers, or partners.

As eaglemoves.com can certify, excellent communication between two parties is a must! Timely updates, real-time tracking, and proactive problem-solving are vital to successful logistics management.

Collaborative communication helps anticipate and address issues promptly, ensuring that your goods move smoothly through the supply chain. It fosters trust, reduces delays, and enhances overall efficiency, making adapting to unexpected challenges easier.

4. Risk Assessment and Contingency Planning

Risk assessment and contingency planning are fundamental aspects of supply chain management that ensure the safe transit of your goods.

Before embarking on international trade, conducting comprehensive risk assessments is crucial, identifying potential disruptions such as weather-related issues, port delays, or regulatory changes. These assessments serve as the foundation for developing tailored contingency plans. These plans outline specific actions to take when unexpected events occur. So, they essentially provide a roadmap for maintaining the flow of goods even in challenging circumstances.

By proactively addressing risks and having a solid plan, businesses can enhance their resilience and protect their bottom line in the face of uncertainty.

5. Insurance and Financial Safeguards

There are some problems you just can’t predict or are out of your hands, so that marine cargo insurance can be a lifesaver. It shields your goods from potential loss or damage during transit, ensuring that unforeseen events don’t result in financial catastrophe. So, evaluating the need for insurance coverage is a prudent step in risk management.

Additionally, risk-sharing strategies and financial safeguards can help protect your business from the economic fallout of disruptions. By allocating resources wisely and establishing financial safety nets, you can absorb the impact of supply chain hiccups without endangering your overall financial health.

6. Compliance and Regulatory Considerations

Staying up-to-date with the ever-evolving world of international trade regulations is paramount. Failure to do so can result in costly delays, fines, and reputational damage.

Collaborating with customs brokers and compliance experts can be a major boon, as they possess the expertise to navigate the intricate web of global regulations. Moreover, meticulous adherence to compliance mitigates risks associated with trade disputes and sanctions and even fosters trust among stakeholders.

7. Technology Solutions for Risk Mitigation

Leveraging advanced supply chain management software empowers businesses to monitor, control, and optimize their logistics operations precisely. These tools provide real-time visibility, helping identify potential disruptions before they escalate.

Additionally, data analytics plays a crucial role by offering predictive insights into supply chain vulnerabilities, enabling proactive risk management.

Implementing blockchain technology also enhances transparency and traceability, reducing fraud and ensuring the integrity of the supply chain. These technology-driven approaches bolster risk mitigation, streamline operations, improve efficiency, and cut costs.

8. Supply Chain Resilience in Times of Crisis

Maintaining supply chain resilience in times of crisis is essential to weather them. Lessons from the COVID-19 pandemic have shown that adaptability and foresight are paramount.

Businesses must keep an eye on global logistics, anticipating disruptions and diversifying suppliers to reduce risk. Flexibility in production and inventory management can help meet sudden fluctuations in demand.

Furthermore, contingency plans like alternate transportation routes and safety stock ensure that operations can continue despite unforeseen challenges. Embracing digital solutions for real-time monitoring and data analytics can also provide a competitive edge by enhancing visibility and predictive capabilities. So, crisis-tested supply chains combine proactive risk management, strategic partnerships, and technology to navigate turbulent waters successfully.

9. Collaborative Risk Mitigation

Collaborative risk mitigation is the way forward in today’s interconnected business world. Engaging in industry collaborations and partnerships fosters collective resilience.

Sharing best practices and risk insights with peers can also provide valuable perspectives. By working together, businesses can collectively strengthen their industry-wide resilience, especially in the face of complex, global challenges.

So, collaborative risk mitigation encourages the free flow of information, helping companies stay one step ahead of potential disruptions.

Conclusion – Keep Your Import and Export Business Well-Protected

In the ever-evolving landscape of international trade, handling unexpected ocean freight issues is a crucial skill. By embracing the above strategies, particularly proactive risk mitigation, effective communication, and collaboration, businesses can safeguard their supply chains and maintain resilience.

So, always work to prioritize these coping methods and keep your imports and exports safe!

This was a guest post by Evelyn Thistlewood.

Author Bio

Evelyn Thistlewood is a seasoned logistics and export specialist. With a passion for optimizing supply chains and mitigating risks, she has navigated the intricate world of international trade, offering valuable insights and solutions to businesses worldwide.

The post Logistics Risk Mitigation: 9 Strategies to Handle Unexpected Ocean Freight Issues appeared first on Universal Cargo.

There is a lot of red tape involved in customs export paperwork, making international shipping a risky business. This article will go over nine shipping documents that are necessary for an export shipment to go smoothly and in accordance with international trade laws and customs regulations, so that your products can arrive at their destinations undamaged and on time. So, let’s get started!

1. Commercial Invoice

The following items are typically seen on a commercial invoice:

• Item description
• Price
• Quantity
• Packaging fees
• Weight/Volume
• Payment conditions
• Shipment details
• Goods insurance

This form must be completed and sent in to clear products for export. The information therein is used by customs to decide whether the shipment should be released. Thus, this document is crucial for a shipment’s paperwork because mistakes in it might lead to penalties, additional duties, or delays in shipments.

2. Export Packing List

An export packing list is a standard document in shipment records that includes information like:

• Shipment type
• Places of origin and destination
• Safety precautions
• Packaging and product information
• Names and addresses of exporter, receiver, shipper
• Voyage number
• Departure date
• Verified signature

With this document in hand, all parties participating in the shipment can rest assured that the products are stored, handled, and shipped correctly. Thus, the export packing list guarantees that everyone knows what is being transported so that they can handle it properly and safely.

3. Licenses & Permits

Certain goods, such as pharmaceuticals, dangerous chemicals, weapons, and defense equipment, require a specific export license. Depending on the type of commodities, several authorities may issue these licenses along with any necessary accompanying permissions. Serious repercussions, including shipment delays, confiscations, penalties, or even litigation, may ensue from a failure to get these licenses and permits.

4. Bill of Lading (BoL)

Between the shipper and the goods forwarder (or carrier), there exists a legally enforceable contract known as the Bill of Lading (BoL). This verifies the shipment’s dispatch and delivery by all parties involved, includes the cargo’s receipt, and lays out the rules of carriage. The goods can be released before or after transportation after this document is signed. It is essential to thoroughly check the BoL to avoid claims if the shipment gets damaged or lost. Also, a signed BoL by the carrier can be used as legal evidence in court to protect against asset theft.

5. Warehouse Receipt

The futures market relies on warehouse receipts, which are official documents attesting to the quantity and quality of commodities stored in a certified warehouse, to facilitate trade.

By integrating the best delivery management software, you can expedite the creation of warehouse receipts and simplify the tracking of stored items. Practical in-transit goods transfer over various chain links is also made possible by this software, along with precise stock & inventory management.

6. Air Waybill

An air waybill (AWB) gives the airline all the information they need regarding air-shipped items. The forwarder/shipper and the airline have entered into a legally enforceable agreement with this document. That way, the goods can be safely and easily transported along the aviation logistics chain.

7. Export License and Certificate Free Sale

This license allows goods to be sold or distributed in their home country. Consumers and throughout the world can buy them without any qualms because this document verifies that they meet all necessary safety and quality standards. While other nations may not require it, this document is often required for exports of certain products such as food items, cosmetics, biologics, or medical devices.

8. Insurance Certificate

An insurance certificate, as the name suggests, details the policy’s coverage and terms. It gives exporters peace of mind because they know that the products listed on this document are covered against damage and liability. Also, cargo insurance requirements vary. In some cases, insurance may not be required by law or carrier policy, but it is a smart safety net in case of unforeseen events like theft or transportation damage.

9. Certificate of Origin

This certificate serves as an exporter’s certification that the goods included in the cargo were manufactured or obtained from a specific country. It also verifies the export eligibility of the commodities, which is a requisite to ensure compliance with the requirements of the country of destination. When it comes to deciding what taxes and tariffs are payable on goods, this document is crucial, even in countries where it isn’t required or where a free trade agreement is in place.

Conclusion

Shipped products’ final destination, place of origin, and nature all play a role on how they are handled throughout transit. However, as we mentioned in our blog post, there are a few export documents that customs agents need in order to verify the legitimacy of a shipment, ascertain its entry or exit status, and collect any applicable fees or taxes.

This was a guest post by Rabab Toor.

Author Bio:

Rabab Toor is a content manager at the Squarepeg and a freelance writer. With a keen interest in technology, the latest trends in digital marketing, logistics, and crypto, she enjoys sharing her insights and expertise on Medium.

The post <a></a><strong>Your Guide to Custom Export Documents: Their Types and Why They Matter</strong> appeared first on Universal Cargo.

Air freight regulations, often intricate and dynamic, demand unwavering attention from U.S. business professionals involved in import and export. Navigating this regulatory landscape requires both compliance and an understanding of its intricacies. So, let’s go over the crucial facets of these processes, offering insights and guidance to ensure smooth shipping operations.

Understanding the Regulatory Landscape

Navigating the complex world of air freight regulations can be daunting for U.S. businesspeople involved in import and export operations.

You must first grasp the regulatory landscape to embark on a successful journey. This landscape consists of various governing bodies, such as the Federal Aviation Administration (FAA), Transportation Security Administration (TSA), and the International Air Transport Association (IATA). These entities set the rules that ensure air cargo transportation’s safety, security, and efficiency.

In addition, international agreements, like the Chicago Convention, play a vital role in harmonizing air transportation standards across borders. Thus, understanding this regulatory ecosystem is the foundation for smooth shipping operations, providing the context needed to comply with air freight rules and regulations.

Cargo Classification and Documentation

Understanding cargo classification and documentation is a pivotal aspect of air freight operations for U.S. businesses.

Cargo classification involves categorizing goods accurately based on size, weight, and hazard level. This classification determines how you should handle, package, and transport cargo.

In addition, precise documentation is essential to ensure a smooth shipping process. It includes essential paperwork like bills of lading, invoices, and certificates of origin. Properly completing these documents is crucial for customs clearance and regulatory compliance. Errors or discrepancies in cargo classification and documentation can lead to delays, fines, or even the rejection of shipments. Therefore, you must invest time in training your staff on these critical aspects of air freight to avoid costly mistakes and ensure your goods reach their destination efficiently.

Packaging and Labeling Compliance

Packaging and labeling compliance are fundamental aspects that go beyond mere aesthetics. They serve a vital purpose in ensuring the safe storage of your goods in transit.

Proper packaging safeguards your cargo from damage during handling, turbulence, and unforeseen circumstances. It also ensures that hazardous materials are securely contained, reducing potential risks. At the same time, accurate labeling and marking help carriers and handlers identify the nature of the cargo, facilitating its proper handling and storage. Non-compliance with packaging and labeling requirements can result in serious consequences, including damage to your goods or even fines for violations. Therefore, you must pay meticulous attention to these compliance standards.

However, if you lack the time or staff to deal with this, Harris Movers Sudbury, ON, recommends hiring packing services. These experts know all about the current packing and labeling regulations and dispose of the appropriate packing supplies. Therefore, they can take this daunting task off your hands and ensure your goods reach their destination safely.

Security Measures and Screening

Security measures and screening ensure the safe and secure transportation of goods.

The Transportation Security Administration (TSA) plays a central role in setting stringent security requirements that U.S. businesses must adhere to. These measures encompass cargo screening procedures, technology utilization, and employee training. Cargo screening, often involving X-ray and other advanced technologies, aims to detect and prevent unauthorized items from being loaded onto aircraft.

Moreover, ensuring that employees are well-trained in security protocols is vital to maintain compliance and minimize risks. By prioritizing security measures and screening, businesses can comply with regulations, protect their shipments, and uphold the integrity of the air freight industry.

Hazardous Materials Transportation

Transporting hazardous materials is a complex and crucial facet of air freight operations. These materials, including chemicals, flammable substances, and radioactive materials, demand strict adherence to regulatory guidelines to ensure safety.

Businesses must thoroughly understand hazardous materials regulations, as misclassification or improper handling can pose severe risks to personnel and the environment. Proper labeling, packaging, and documentation are also mandatory for these shipments, and obtaining the necessary permits and approvals is paramount. By taking these precautions and diligently following established safety protocols, you can safely transport hazardous materials through air freight, mitigating potential hazards and environmental concerns.

Customs and Import/Export Regulations  

The process of navigating customs regulations for international shipments is a vital consideration. Customs and import/export regulations govern the flow of goods across borders, ensuring compliance with trade laws and tariffs. Properly completing customs documentation, such as import/export permits and declarations, is essential to prevent delays and legal issues.

Understanding the specific requirements of the countries you are shipping to and from is crucial, as these regulations can vary widely. Failing to comply with customs and import/export regulations can result in confiscated shipments or significant financial penalties. Therefore, staying well-informed about the customs requirements of the origin and destination countries is crucial for ensuring smooth international shipping operations.

Compliance Training and Employee Education    

Compliance training and employee education play a pivotal role in ensuring the success of U.S. businesses involved in air freight operations. Well-informed and trained employees are better equipped to navigate the intricacies of air freight, from cargo classification to security measures.

Furthermore, investing in comprehensive training programs helps employees understand their responsibilities and fosters a culture of compliance within the organization. Moreover, it makes your operations smoother and more reliable. Employees well-versed in compliance standards are less likely to make errors or overlook critical details, reducing the risk of costly mistakes and disruptions!

Compliance Audits and Recordkeeping      

Conducting compliance audits and maintaining meticulous records are crucial aspects of air freight operations for U.S. businesses.

Regular audits help ensure that all aspects of air freight, from cargo classification to labeling and security measures, align with standards. These audits are a proactive means of identifying and rectifying potential compliance issues before they escalate.

Simultaneously, maintaining accurate records and documentation is essential for demonstrating compliance with regulations. Records such as cargo manifests, safety certificates, and audit reports provide a clear trail of compliance efforts. They help businesses adhere to regulatory requirements and also prove invaluable in case of external audits or investigations.

Trade Sanctions and Embargoes

Navigating trade sanctions and embargoes is critical. The U.S. government imposes these sanctions to restrict trade with specific countries, entities, or individuals for various reasons. These include national security and foreign policy objectives.

Thus, ensuring compliance with them is essential to avoid severe legal consequences, including hefty fines and legal liabilities. So, it’s crucial to employ comprehensive screening processes to identify and avoid prohibited parties and entities when conducting air freight. Staying informed about changes in sanction lists and regulations is equally vital, as these can evolve. As such, businesses must implement robust compliance measures, including proper due diligence and risk assessment, to safeguard their operations.

Environmental Regulations and Sustainability

Environmental regulations and sustainability practices are becoming increasingly important. Adhering to environmental guidelines ensures compliance and even contributes to reducing the carbon footprint of your import and export operations.

Besides, embracing eco-friendly initiatives aligns with regulatory standards and enhances your corporate reputation.

Furthermore, sustainable practices help protect the environment and improve your import and export efficiency. For instance, adopting efficient supply chain management and eco-friendly packaging can save costs and reduce environmental impact.

Conclusion on Air Freight Regulations

With everything we covered on air freight regulations, it’s clear that compliance is not just a box to tick. In fact, it is a vital aspect of successful international trade.

Thus, navigating them can be intricate, but the benefits of doing so are immense, ensuring the safety and security of your shipments and even the seamless flow of global commerce. So, stay informed, stay compliant, and thrive in the industry!

This was a guest post by Evelina Thorne.

Author Bio

Evelina Thorne, a distinguished authority in logistics and compliance, brings unparalleled expertise to freight regulations. With an extensive background in navigating complex regulatory landscapes, Ms. Thorne offers invaluable insights to U.S. businesses engaged in import and export operations. Her profound knowledge ensures the smooth flow of global commerce while upholding the highest compliance and security standards.

The post Air Freight Regulations: Compliance Guidelines for Smooth Shipping Operations appeared first on Universal Cargo.

This is a guest post by Patrica Garcia.

Customs regulations when shipping internationally are a crucial aspect of global trade. For U.S. businesspeople, understanding these rules is not just about compliance—it’s about ensuring a smooth, efficient transfer of goods across borders. This guide will explain the essentials of customs regulations, helping you avoid delays, reduce costs, and confidently manage your international shipments.

Understanding Customs Regulations

Customs regulations form the framework for international trade, dictating the flow of goods across borders. These rules are in place to control the import and export of merchandise, ensuring that all items are legally allowed, properly documented, and taxed accordingly. Failure to comply can lead to significant setbacks, including fines, delays, or confiscation of goods.

Key terms you’ll encounter include duties, tariffs, and import/export restrictions. Duties and tariffs are the country’s fees on imported and exported goods. These can vary widely, depending on the product and the country. Import/export restrictions can include quotas or bans on certain goods, often based on health, security, or environmental protections.

Leveraging Technology for Compliance

In today’s digital age, leveraging technology can significantly streamline the customs process. Many businesses are now turning to software solutions that automate the creation of shipping documents, ensuring that they are filled out correctly and consistently. These systems can also keep up-to-date records of changing customs regulations, which is invaluable in maintaining compliance.

Staying Informed on Trade Agreements

A less discussed yet vital aspect of international shipping is staying abreast of trade agreements between countries. These agreements can significantly affect customs regulations, duties, and tariffs. For instance, being aware of preferential trade programs or free trade agreements that your home country has with the destination country can offer substantial savings on tariffs and provide a competitive edge in pricing your products.

Emphasizing Ethical Compliance

In the complex web of international shipping, ethical compliance often takes center stage. It’s not just about following the rules; it’s about upholding a standard of integrity that reflects on your business and its practices. That includes ensuring that no part of your supply chain is involved in unlawful activities such as smuggling or violating trade sanctions. Businesses that prioritize ethical compliance not only protect themselves from legal repercussions but also build their reputation as trustworthy and responsible international traders.

Calculating Duties and Taxes

Duties and taxes are an inevitable part of international shipping. They are calculated based on the harmonized system (HS) code, the value of the goods, and the country of origin. Online duty calculators can provide estimates, but for precise figures, consulting with a customs broker or the destination country’s customs authority is advisable.

Strategic planning can help manage these costs. For example, navigating high international shipping costs can be crucial, especially during peak seasons when expenses escalate.

Preparing Your Shipment

Preparation is paramount. Begin by researching the specific customs regulations of your destination country. That can include product restrictions, documentation requirements, and labeling standards. For instance, some countries have strict regulations on the packaging material due to pest control.

In international relocation, companies like Professional Movers Ottawa have noted the importance of meticulous organization when preparing for a move. That includes creating a detailed inventory of items being shipped, which not only helps in keeping track of the goods but also simplifies the process of obtaining customs clearance, as authorities often require a comprehensive list of the contents.

Documentation is your shipment’s passport. Commonly required documents include a commercial invoice, which details the transaction between the exporter and importer, and a certificate of origin, which verifies where the goods were manufactured. Ensure that all paperwork is complete, accurate, and readily available.

Proper packaging and labeling are also critical. Incorrect labeling can lead to misunderstandings, delays, and even penalties. Labels should include information such as contents, country of origin, and any handling instructions in the language of the destination country if required.

Working with Customs Brokers

Customs brokers act as the liaison between your business and the customs authorities. They are experts in the field and can navigate the complexities of customs regulations with ease. Their services can be particularly beneficial during the international shipping peak season when the volume of shipments can lead to delays and increased scrutiny from customs officials.

The benefits of hiring customs brokers include their ability to handle all necessary documentation, their knowledge of duty reduction programs, and their capacity to expedite customs clearance. When choosing a customs broker, look for experience, good references, and a track record of success with your particular type of goods and destination countries.

Dealing with Customs Clearance

The customs clearance process is the final hurdle in international shipping. This stage involves the assessment and collection of duties and taxes and the enforcement of other customs regulations. Common issues that can arise include discrepancies in documentation, misclassification of goods, and unpaid duties.

To ensure a smooth customs clearance, double-check all documentation for accuracy and completeness. Be proactive in addressing any requests from customs officials, and be prepared to provide additional information if necessary. Remember, a delay in clearance can lead to increased storage fees and disrupt your supply chain. That is where you can truly unleash your shipping potential by ensuring that all processes are optimized for efficiency and compliance.

Navigating Environmental Regulations

Environmental considerations are increasingly becoming a part of international shipping customs regulations. Many countries are now implementing stricter controls on the transportation of goods to minimize environmental impact. That includes regulations on emissions, waste management, and the use of certain materials in packaging. Staying informed about and compliant with these environmental guidelines contributes to the global effort to protect the planet, resonates with eco-conscious consumers, and can enhance your brand’s image.

Manage Customs Regulations When Shipping with Succes

Navigating customs regulations when shipping internationally is a complex but manageable task. However, by understanding the regulations, preparing your shipment correctly, calculating duties and taxes, and dealing with customs clearance efficiently, you can ensure that your goods reach their destination without issue. Mastering these regulations is key to the success of your international business endeavors.

This was a guest post by Patrica Garcia.

Author Bio

BIO: Patrica Garcia is a distinguished international trade consultant with a decade of experience in customs and logistics. Her expertise in simplifying complex customs regulations has made her a sought-after speaker and contributor to trade publications. With a Master’s in International Business and a passion for travel, Patrica infuses her work with a rich global perspective, making her a valued resource in the business community.

The post How to Navigate Customs Regulations When Shipping Internationally appeared first on Universal Cargo.

Your business can’t do without shipping, yes. But who says you have to do the shipping yourself?

Let’s face it; the complexities of import and export demand significant time and resources that could be invested in other parts of your business. For example, not knowing where your cargo is can be really scary. And with good reason – over 2,675 containers are lost at sea each year. 

That’s where a reliable freight forwarder comes in handy. Universal Cargo is THE go-to freight forwarder when it comes to your US import/export operation. They take the burden of shipping goods worldwide off your shoulders and calm your fears. 

Freight forwarders handle shipping processes like warehousing, tracking onshore transport, securing cargo space, arranging cargo, sorting freight charges, and managing documentation, among others. 

But a freight forwarder isn’t all you need to transform your business operations in this digital age  – you need a robust transportation management system (TMS). 

Thankfully, there are new technologies that, if integrated into your transportation management system, will boost it and revolutionize your business operations. These are the technologies we’ll be discussing in this article. Let’s jump right in.  

How a TMS Will Benefit Your Import/Export Operations

A transportation management system is a logistic platform used in supply chain management to plan, optimize, and implement the transportation of goods. TMS helps businesses manage and improve the daily workflow of their transportation operations. Here are reasons to invest in a TMS for a more efficient business. 

Logistics Optimization

A transportation management system (TMS) helps you manage your entire supply chain and logistics process, making it more efficient and cost-effective. It covers every process from the time you receive orders to when you deliver them. This software assists you in route optimization, load consolidation, real-time tracking, and inventory management, among others. 

Document Flow Simplification

Documentation is critical to the import/export business, yet it can be a mess. Handling different documents throughout the whole supply chain process can be tasking and disorderly if done manually. TMS automates and simplifies the whole documentation process in your business. 

It improves the status visibility of all documents, letting you access them easily. With TMS, you generate accurate and consistent documents, saving you time and minimizing errors. A transportation management software also improves internal and external communications, allowing you to carry all stakeholders along and resolve issues sufficiently.

Real-Time Tracking and Visibility

There’s nothing as frustrating as not being able to track your goods. Even if you’re outsourcing your shipping to a freight forwarder, you must be able to know where your goods are at any point in time. TMS puts your mind at rest in this regard. It gives you an up-to-the-minute update of where your shipment is at every stage of the supply chain. 

Real-time tracking of your products improves your efficiency, letting you allocate resources more effectively. It also enables you to detect any delays or issues on time so they can be resolved before they get out of hand. With TMS, your customers can also get real-time updates on their goods, leading to improved customer experience. 

Compliance with Agreements and Regulations

To be successful in any business, including import/export, you must comply with the relevant regulations and agreements. This sounds easy but the process can be complicated. But TMS has got your back. It helps you simplify tasks relating to compliance management. As a result, you will not only be avoiding fines and penalties, you will also be running a reputable and sustainable business. 

On-time Delivery

The best way to lose customers is by delivering their goods late. Fortunately, a transportation management system helps you reduce and even eliminate this occurrence. Route adjustment features in TMS enable you to route your goods more efficiently to avoid delays. In addition, the real-time tracking data you get from a TMS calculates the exact expected time of arrival (ETA) of goods and relays the information to customers. 

Businesses that can benefit from a transportation management system include the following:

• Food and beverage businesses
• Ecommerce businesses
• Distributors
• Retailers
• Healthcare and pharmaceutical companies
• Building materials and construction companies
• Agricultural businesses
• Oil and gas companies
• Textile companies 

To revolutionize your business operations, TMS is not a should-have, it’s a must-have. It eases your supply chain operations, letting you optimize your resources. The benefits you get from adopting a transportation management system not only help you run your business smoothly, they place you among the top-tier companies in your field. 

5 Technologies to Boost TMS Growth

TMS is a fantastic innovation but it stops being so if you don’t expand it to meet evolving technological demands. For example, what the computer was 20 years ago is not what it is now. It has been upgraded many times to meet present needs. The same principle applies to TMS. It has to be continually boosted by being integrated with other software to make it more robust. Here are five technologies that can boost TMS growth. 

1. Equipment management software 

Equipment management software improves the allocation and utilization of assets in your business. Say goodbye to days of endless spreadsheets and manage your equipment data in one central location. Whether you’re into manufacturing or supply, every piece of equipment you own must be well-managed. 

Integrating an equipment management system into your TMS ensures you never lose track of your equipment and power tools. Not only are you able to collaborate more effectively, you also gain full control of your equipment and enhance accountability. 

2. Battery management software 

Battery management software (BMS) unlocks performance, improves safety, and enhances the lifespan of batteries in any application. BMS  improves the efficiency of your transportation management system in several ways. First, it helps optimize routes for electric vehicles (EVs), enabling them to complete their journeys without running out of charge. 

Another benefit of integrating a BMS into your TMS is that it can route EVs through charging stations, ensuring that they recharge as and when needed. Also, if you’re using an energy management system to optimize power usage in your facility, BMS works like magic. It helps coordinate your EVs to charge during off-peak hours, saving energy and promoting sustainability. 

3. Enterprise resource planning systems

An enterprise resource planning (ERP) system is a rounded integrated software that assists businesses of all sizes to harmonize and streamline their core processes. An ERP system provides by-the-minute visibility of workflows, boosts operations and improves decision-making.

When you integrate TMS and ERP, you facilitate smooth data sharing between the transportation unit and other units of the company. The centralized database that the ERP provides ensures that only valid and accurate information guides transportation decisions. This information can cover aspects like customer orders, supplier details and inventory status.

4. Supplier relationship management software

Supplier relationship is crucial to a vibrant supply chain and indeed the success of the company. Thus, the need to manage suppliers successfully is what birthed the supplier relationship management (SRM) software. This software improves the procurement process, boosts supplier collaboration and ensures the efficient operation of the company’s supply chain.

If integrated with the TMS, the SRM software helps enhance relationships with suppliers and partners in the transportation unit like freight forwarders. Data collected from SRM enables TMS to manage transportation operations more efficiently. 

Generally, the integration of TMS and SRM leads to better logistic planning, cost-effectiveness, and an enhanced supply chain process. 

5. Warehouse management system

Warehouse management systems (WMSs) are software solutions developed for managing warehouse operations. They ensure the efficient processing of goods from arrival till they leave the warehouse. The software covers functions like inventory management, order management, shipping, and task management. 

When integrated with TMS, WMS helps streamline and optimize the transportation workflow, resulting in reduced errors, short fulfillment times and improved order accuracy. 

Why the Need for Technological Advancements in TMS

Still not sold? Then a deeper dive into the need for an advanced tech-driven TMS will change your mind. Here are five solid reasons you need to jump onboard and boost your TMS with improved technology. 

1. Growing complexities of the supply chain process 

We’re in a digital age where the business landscape has changed drastically. The supply chain industry is not left behind – the process has become more complex, transcending borders and becoming global. And this digital transformation is not stopping anytime soon. That’s why you must embrace the latest technological advancements for your TMS growth.

2. The need to save costs 

It’s a fact that technological solutions help businesses manage their operations better and save costs. TMS-boosting software are no exception. They streamline your workflows, block loopholes, and save you tons of money. 

3. Customer expectations 

You’re in business because of your customers. Remove them from the equation and you’ll be out of business pretty soon. And today’s customers have high demands that can only be met with the latest technologies. So, to ensure you keep your customers and gain new ones, you must integrate modern solutions into your TMS. 

4. Data-driven age 

The whole world is driven by data – from governments to corporations and NGOs. Anyone who’s serious about making any impact in this age has to use data in one form or the other. What better way to leverage up-to-date data than by adopting software designed to help you use data to your advantage? All the solutions mentioned here are data-equipped to enable you to manage your transportation operations more effectively. 

5. Regulatory compliance  

Regulations guide the business landscape and keeping up with them can be stressful. But with these innovative technologies, it becomes easier. For example, the centralized data an ERP software provides gives you immediate access to any data needed for regulatory purposes in the transportation unit. Also, a battery management software helps you comply with sustainability rules.

See? The transportation management software (TMS) is good but it can be better with supporting digital solutions. With these software, not only will you be able to effectively use data, your operations will become smoother and more productive. 

The Difference Between You and Your Competitors

Do you know that in the US, exports of goods increased from $3.2 billion to $168.4 billion in July 2023? Guess who those are raking in such humongous amounts? You’re right – your competitors. And how are they able to do such incredible numbers? You’re right again – by leveraging innovative technologies. 

See why you can’t fold your arms and settle for a TMS that’s not optimized for growth? Here are other benefits you derive from boosting your TMS.

• Reduced costs: benefits like load consolidation and route optimization gained from an improved TMS helps reduce costs. 
• Improved decision-making: with access to up-to-date data that these technologies provide, decision-making becomes easier and better informed.  
• Better customer experience: these software enable you to improve your operations and service delivery, leading to enhanced customer experience. 
• Efficient use of labor: TMS-boosting software promotes the visibility of all your supply chain processes, enabling you to efficiently deploy labor. 
• Compliance with industry regulations: these technologies make it easy to comply with industry regulations, helping you avoid fines and penalties that come with non-compliance.
• Achievement of sustainability goals: your corporate sustainability goals are seamlessly met with advanced TMS technologies like equipment management software and battery management software.

These benefits are too juicy and numerous to pass on. And there’s no better time to integrate TMS growth-boosting technologies than now. Remember, the difference between import/export businesses that are doing great numbers and those performing poorly is the technology they leverage. 

Time to Grow Your Export/Import Business with Advanced TMS Technology

It’s not business as usual. The world is changing fast and tech gurus are constantly churning out digital solutions to ease business processes and promote growth. It’s a great time in history and an opportunity to move your business to the next level with an enhanced transportation management system. 

Your TMS will do much more if integrated with growth-boosting solutions like the equipment management software, battery management software, enterprise resource planning, supplier relationship management software, and warehouse management system. 

Even if you don’t want to take advantage of these digital transformation tools, necessities like the growing complexities of the supply chain process, cost saving, customer expectations, data-driven age, and regulatory compliance are valid reasons to jump in. 

Not to worry, your investments are not a waste. They come with dividends like reduced operational costs, better decision-making, improved customer experience, efficient use of labor, compliance with industry regulations, and achievement of corporate sustainability goals. 

So, the best time to integrate these solutions with your TMS was yesterday. The next best time is now. You have the ball; you have the court. 

This was a guest post by Moyofade Ipadeola.

Author Bio

Moyofade Ipadeola is an SEO writer, UX writer, and editor. Witty, she loves personal development and helping people grow. Mo, as she’s fondly called, is fascinated by all things tech. She can be reached on Linkedin. 

The post Revolutionize Business Operations: How Technology Can Boost TMS Growth appeared first on Universal Cargo.

In the dynamic world of importing and exporting, ensuring the safe storage of your goods in transit is paramount. Every step, from packing to transportation, holds potential risks – and protecting your cargo means safeguarding your investments. As we look toward the future of ocean and air freight, such discussions must be held.

From adverse weather conditions to the hustle and bustle of handling, challenges abound. Still, there are essential techniques that can help fortify your supply chain, ensuring your goods reach their destination unscathed. Embracing these practices will shield your investments and pave the way for a seamless and successful trade journey. So, let’s delve into the world of safe storage, ensuring your goods arrive as they should – intact and on time.

Understanding the Risks

Initially, exploring this subject requires a clear understanding of the potential risks goods face in transit. As experienced readers, you likely don’t need details on this front, but an outline is still warranted:

• For one, weather conditions play a crucial role. Extreme temperatures or humidity can harm sensitive items. Therefore, proper temperature control, like climate-controlled storage, is vital.
• Physical damage is another concern. Rough handling or improper packaging can lead to costly losses. To counter this, secure packaging and careful handling are essential.
• Security is paramount, too. Theft during transit is a real threat. So, implementing robust security measures, such as surveillance and tracking systems, is imperative.

In brief, it’s these risks our exploration will hinge on. Comprehending these risks lays the foundation for a secure and successful transit journey, ensuring your goods reach their destination in optimal condition. And as supply chain disruptions remain likely, this robust foundation will often be necessary moving forward.

Safe Storage of Your Goods: Implementing Best Practices

Unfortunately, absolute security can never be guaranteed. Weather phenomena, accidents, mishandling, security breaches, and other risks can never be truly nullified. However, there are ample best practices that can help significantly.

Choosing the Right Storage Solutions

Of course, safe storage starts with choosing the right storage solutions. When it comes to containers and packaging materials, opt for sturdy options that suit the nature of your cargo. Reinforced boxes and cushioning materials provide an added layer of protection.

Evaluating storage facilities and warehouses is equally crucial. Ensure they meet security standards and are equipped to handle your specific goods. Keep in mind that Pack & Go Movers NY advises due diligence in this process, as they keenly understand the importance of secure storage.

Finally, climate-controlled storage is a game-changer for goods sensitive to temperature fluctuations. It provides a controlled environment, shielding your items from extreme conditions. Prioritize this option for items like electronics, perishables, and delicate materials.

Labeling and Documentation

Effective labeling and documentation are paramount. Proper labeling allows for easy identification of your cargo, ensuring it reaches its destination accurately. Detailed documentation also plays a crucial role in tracking and maintaining accountability throughout the transit process. It provides a clear record of the journey, aiding in any necessary investigations or audits.

Compliance with customs regulations and labeling requirements is non-negotiable. Failure to adhere to these guidelines can result in delays or even loss of goods. So, ensure all necessary information is accurately and prominently displayed on labels and documents. This is particularly important in the case of oversized cargo, as we’ve discussed before.

Monitoring and Surveillance

Robust monitoring and surveillance measures are essential to ensure the safe storage of your goods in transit. Installing security systems and cameras provides a vigilant eye on your cargo, deterring potential threats. What’s more, employing trained personnel for on-site monitoring adds an extra layer of protection. Their presence helps maintain a secure environment and ensures immediate response in case of any suspicious activity.

Additionally, leveraging advanced tracking technology allows real-time monitoring of your goods’ whereabouts. This technology provides valuable insights and alerts for any deviations from the planned route. Needless to say, prioritizing monitoring and surveillance is a critical step towards a successful and secure transit journey for your valuable goods.

Training and Education

Training and education are also pivotal. Staff members should be well-versed in proper handling and storage techniques. This knowledge equips them to securely pack, load, and arrange goods for transit, reducing the risk of damage. Moreover, regular safety drills and simulations reinforce these techniques. They provide practical experience in handling emergency situations, ensuring a swift and efficient response if the need arises.

In this regard, keeping employees informed about security protocols is equally crucial. This ensures that everyone understands and adheres to the established measures for safeguarding goods. A well-informed team is an integral part of maintaining a secure transit process.

Emergency Preparedness and Response

Any team can falter – and issues may still arise. So, in ensuring the safe storage of your goods during transit, being prepared for emergencies is paramount. This begins with developing contingency plans for unforeseen circumstances. These plans outline clear steps to take in case of unexpected events throughout the forwarding process, minimizing potential damage or loss.

Establishing robust communication channels for emergencies is equally vital. It ensures that timely information can be relayed and acted upon swiftly. Finally, collaborating with local authorities and emergency services enhances the effectiveness of response efforts. This ensures that, even in unforeseen situations, measures are in place to protect your valuable cargo throughout its transit journey.

Regular Inspections and Audits

Regular inspections and audits are crucial components of the process. Conducting routine checks for any signs of damage or tampering allows for immediate action if any issues are detected. This proactive approach helps to secure systems and prevent further harm or loss. Carrying out comprehensive audits of storage practices provides a thorough assessment of the security measures in place. It identifies areas for improvement and strengthens overall safety protocols.

Importantly, implementing corrective measures promptly is key. Any identified weaknesses or breaches should be addressed swiftly to maintain the integrity of the storage process. By adhering to these practices, you establish a vigilant system that continuously monitors and fortifies the security of your goods throughout their transit journey. This diligence ensures that your cargo arrives at its destination intact and secure.

Conclusion

Prioritizing the safe storage of your goods in transit is not just a precaution; it’s a smart business move. Weather conditions, physical handling, and security risks are ever-present challenges. By choosing the right storage solutions, implementing robust monitoring, and providing proper training, you build a strong defense against potential harm. Labeling, documentation, and regular inspections further fortify this defense. Being prepared for emergencies and collaborating with local authorities ensure a swift response in critical situations, while regular audits solidify the security of your storage practices.

Remember, safe storage of your goods isn’t just about protection; it’s about safeguarding your investments and ensuring your business’s success. By following these practices, you can confidently navigate the complexities of transit, knowing that your valuable cargo is in safe hands from start to finish.

This was a guest post by Samuel Davis.

Author Bio

Samuel Davis is a freelance marketer and SEO enthusiast with a keen interest in the relocation industry and logistics. He often writes about supply chain management and logistics challenges, with an eye on emerging technologies.

The post How to Ensure Safe Storage of Your Goods in Transit appeared first on Universal Cargo.

The Future of Ocean and Air Freight: Ensuring the Longevity of Your Logistics Strategy

This is a guest post by Cris Mark Baroro.

Today’s intricate global trade system demands efficient and dependable international transportation of goods. Consequently, the successful exchange of commodities across nations underpins the core operations of many companies worldwide.

A staggering number of containers shuttle between countries, underscoring the substantial daily traffic in the freight industry. Access to innovative technology and robust machinery is vital for businesses as they navigate the complexities of this industry. This article dissects the future of the ocean and air freight sectors, elucidating potential impacts on the sustainability of your logistics plans, particularly for those businesses reliant on freight forwarders for international shipments.

The Evolution of Freight

Businesses banking on timely, effective delivery of goods have profited enormously from the progression made in air freight. Before the 1960s, airplanes primarily served military purposes and offered very limited freight capacity. Commercial air freight operations kicked off in the early 1960s, spurred by advancements in technology and aircraft design that allowed larger cargo hordes to be transported concurrently.

The 1980s witnessed air freight morphing into a cost-effective alternative to ocean shipping, thanks to technology.

For instance, innovative engine designs boosted the payload for each aircraft trip and lowered fuel usage. Consequently, the potential routes that could be economically viable mushroomed. Streamlined turnaround times at airports and rigorous scheduling control also became feasible due to the advent of computerized reservation systems.

As technology further materializes and the dynamics of international trade evolve, air and maritime freight sectors are witnessing enormous changes. Developments in technology have fostered improvements in efficiency, safety, and tracking capabilities across both sectors.

Nevertheless, global events and shifting business trends shape the courier of goods.

Technological Innovation: A Cornerstone of the Freight Industry

In the freight industry, technology has been a catalyst for unparalleled operational improvements, enhancing efficiency, safety, and tracking capabilities. Key innovations have fueled the transforming landscape of the sector.

Unmanned Vehicles

Instead of being ubiquitously operational, unmanned vehicles are in their testing phase and show the potential to stimulate efficiency—especially regarding the delivery process. These vehicles offer expedited loading and unloading capabilities, potentially enabling coverage of both short and long distances and serving as a swift and more accurate option in the future.

Digital Platforms for Bookings and Operations

Digital platforms can simplify freight booking and business operations, offering real-time status updates and seamless dialogue between involved parties. Digitalization can help optimize workflows and drastically curtail delays.

Secure Transactions via Blockchain Technology

Blockchain technology can instigate industry transformation by significantly reducing the susceptibility to fraud and security violations. It accomplishes this by offering transparent and tamper-proof transactions.

Real-Time Tracking

The ability to track shipments in real-time has curtailed delivery uncertainties and dramatically enhanced customer satisfaction levels.

Trade Management Platforms

Technological improvements are redefining how freight forwarders operate—particularly enhancing trade management platforms. These platforms aid in easy shipment management, workflow streamlining, trade compliance improvement, and collaboration enhancement. This translates to a comprehensive solution for freight forwarders.

Towards More Transparent Tracking and Shipping

Advancements in tracking technology have made real-time data readily available, enhancing transparency in shipping operations. Customers can now accurately track their shipments, predict delivery timelines, and monitor goods movement. This promotes operational efficiency and facilitates informed decision-making.

The Pulse of Global Trade

Global trade dynamics deeply influence the future trajectory of freight forwarding. Several factors affecting trade volumes, routes, and freight pricing encompass these dynamics.

Geo-Political Forces

The political climate and relations status significantly affect global trade, shaping policy choices and trade hurdles. Businesses should keep abreast of such changes to preemptively mitigate potential impacts on their freight operations.

Trade Policies

Policies instituted by national governments and international trade bodies can impact freight forwarding. Tariffs, quotas, and similar restrictions can alter supply chain strategies and cost structures.

Economic Fluctuations

Economic downturns or upturns can considerably affect supply and demand, altering the volume of commodities transported and freight rates. Currency strength can also influence the cost of freight services directly.

Climate Change and Environmental Policies

As countries pledge to decrease their carbon footprints, environmental policies that impact freight forwarding will likely emerge, including alternative fuel requirements or emission restrictions.

Global Health Events

World health crises like pandemics can trigger sudden, drastic modifications in global trade dynamics, as evidenced by the COVID-19 pandemic. Such events can disrupt supply chains, necessitating adjustments in freight forwarding strategies.

Looking Ahead: The Future of Ocean Freight

As new markets burgeon, many businesses are strategically establishing production units overseas. Moreover, customers globally now enjoy broader choices in sourcing products from different parts of the world. Given its cost-effectiveness and capacity to transport colossal cargo loads, ocean freight remains a linchpin of international trade.

Key focus areas as we voyage into the future include:

Sustainable Shipping

With escalating environmental concerns, the future of ocean freight will demand sustainability. The industry is already probing cleaner fuels and low-emission technology, which is anticipated to set new standards.

Smart Ships

With strides in automation and AI, the industry is moving towards developing Smart Ships, aiming to minimize human errors, augment safety, and bolster speed and efficiency.

eCommerce Logistics

The surging popularity of online shopping and the meteoric growth of Amazon necessitate the logistics industry’s evolution to cater to this transition. These involve novel technologies, methods, and strategies to expedite and enhance retail deliveries.

Air Freight: Future Directions

Air freight remains the preferred choice for shippers of time-sensitive and high-value items, thanks to its speed and reliability. Below are trends shaping its future:

Airships and Drones

Airships and drones target enhancing speed and accessibility, especially in remote regions or during natural calamities. Airships are an intriguing alternative to traditional planes and helicopters, as they can carry heavier loads while consuming less fuel and are more eco-friendly. Drones, although in their nascent stages, already facilitate deliveries to remote areas in some parts of the world.

Bolstering Security

In response to increased cyber vulnerabilities, the air freight sector will employ advanced security measures to maintain customer and business confidence. Expect the application of artificial intelligence and machine learning in identifying and mitigating risks.

A Sneak Peek into Innovative Tools in Freight

As we explore emerging opportunities, let’s glance at the innovative tools making their presence felt within the freight industry. Enhancements in technology are not limited to merely boosting freight operations efficiency. Instead, they’re revolutionizing how businesses convey their brand using tools like MP4 compressors, video editors, and AI avatars.

An MP4 compressor can aid in managing large video files related to freight operations. For instance, operational centers use security cameras, time-lapse videos, and other video-based documentation to monitor and ensure the secure movement of cargo. High-quality video provides transparency and efficiency, though it often comes with large file sizes that can make sharing and storing challenging.

On the other hand, a video editor and AI avatar could help your business narrate its story in an engaging virtual tour. In the face of intensifying competition, companies need to provide innovative solutions tailored to today’s consumers.

Strengthening Your Business With Knowledge

Grasping the prevailing trends and future expectations in ocean and air freight grants businesses the insight necessary to make informed decisions about their shipping methods and strategies for international trade. Following these shifts puts your business in a stronger position, ensuring your logistics plans are flexible, resilient, and ready for the future. As we steer into this new era of freight forwarding, boundless opportunities await those eager to adapt and overcome.

This was a guest post by Cris Mark Baroro.

Author Bio

Cris is currently working in VEED.io. He is a tech enthusiast who loves photography, videography and technology innovations. He enjoys video editing, programming, QA system testing, and writing.

The post Logistic Longevity: The Future of Ocean and Air Freight appeared first on Universal Cargo.

Global sourcing, the practice of obtaining goods and services worldwide, has become a cornerstone of modern business. In this dynamic era, where borders no longer confine commerce, effective global sourcing strategies are essential for companies aiming to stay competitive and thrive. Let’s dive into the art of global sourcing, uncovering key strategies that empower businesses to import wisely.

Understanding Global Sourcing: Unveiling the Power 

Global sourcing, a practice that transcends geographical boundaries to acquire goods and services, is a formidable tool in the modern business arsenal. Its potential to revolutionize operations, enhance competitiveness, and drive growth is immense.

Let’s delve deeper into global sourcing and explore the underlying factors making it an indispensable business strategy today.

1. Expanding Horizons

Global sourcing dismantles traditional barriers, enabling businesses to access resources from virtually any corner of the world. This access to a vast global marketplace allows companies to tap into specialized skills, technologies, and materials that might not be available domestically.

Whether securing rare raw materials, harnessing cutting-edge innovations, or benefiting from the expertise of skilled professionals, global sourcing expands the horizons of what a business can achieve.

2. Cost Efficiency and Competitive Edge

One of the primary drivers of global sourcing is cost efficiency. Businesses can often find suppliers and partners in regions where production costs are lower, allowing them to reduce expenses without compromising on quality.

This cost advantage translates to competitive pricing for end products, providing an edge in markets characterized by price sensitivity. Companies can allocate resources to other critical areas like research, marketing, and development by optimizing cost structures.

3. Diverse Talent Pool

Global sourcing also brings forth a diverse talent pool. Companies can tap into the skills of professionals worldwide, fostering innovation and fresh perspectives.

A software development team in one country might excel in user experience, while another might specialize in security. Businesses can create holistic and superior products by assembling teams with complementary skills from different parts of the globe.

4. Agile Operations and Scalability

The practice of global sourcing encourages flexibility in operations. Businesses can quickly adapt to changing market dynamics by reallocating resources or altering supply chains. This agility is crucial in industries characterized by rapid technological advancements and shifting consumer preferences.

Moreover, global sourcing facilitates scalability, allowing businesses to ramp up production to meet increased demand without substantial investments in infrastructure.

5. Learning and Adaptation

Engaging with diverse partners worldwide exposes businesses to various methodologies, work cultures, and problem-solving approaches. This cross-pollination of ideas fosters learning and Adaptation. Companies can integrate best practices from different regions, enhancing their processes and elevating their offerings’ overall quality.

6. Reducing Dependency and Risks

Relying solely on local suppliers can create vulnerabilities in the supply chain. Natural disasters, geopolitical tensions, or economic fluctuations can disrupt operations.

Global sourcing minimizes such risks by diversifying suppliers and locations. If one source is compromised, alternatives can be swiftly activated, ensuring business continuity even in challenging times.

7. Market Expansion

Global sourcing can also pave the way for market expansion. When businesses establish supplier relationships in foreign markets, they gain insights into those markets that can facilitate future market entry. This groundwork can be invaluable when the time comes to expand sales and distribution networks internationally.

8. Innovation Acceleration

Innovation often thrives in environments where diverse perspectives converge. By collaborating with partners across borders, businesses can accelerate their innovation cycles.

Different regions bring distinct approaches to problem-solving, sparking creativity and generating novel solutions.

The Pillars of Effective Global Sourcing

1. Strategic Partnering

The first step in effective global sourcing is identifying the right partners. These partners could be suppliers, manufacturers, or service providers. Building solid relationships with partners who align with your business goals and values is crucial.

Look beyond transactional engagements and aim for long-term collaborations that foster mutual growth.

2. Risk Management

While global sourcing offers numerous benefits, it has risks. Disruptions in supply chains, geopolitical uncertainties, and quality control issues can all pose challenges. Mitigating these risks requires thorough research and contingency planning.

Diversify your sourcing locations, have backup suppliers, and stay informed about global trends that could impact your operations.

3. Quality Assurance

Maintaining product quality is non-negotiable.

Conduct rigorous due diligence when evaluating potential partners. Inspect their facilities, review their track record, and demand samples or prototypes. Regular quality checks should be incorporated into your sourcing process to ensure consistency.

4. Total Cost Analysis

Lower costs often drive global sourcing decisions, but it’s essential to consider the total cost of ownership. This includes transportation, tariffs, taxes, and potential delays.

A cheaper supplier might cost more in the long run if these hidden costs are overlooked.

5. Ethical and Sustainable Sourcing

In an age of heightened awareness, ethical and sustainable sourcing is gaining prominence. Consumers and stakeholders value businesses prioritizing fair labor practices, environmental responsibility, and social impact. One example of social impact is a recent initiative where the purchase of specific eco-friendly cups also contributes to providing meals for people in need. This approach not only helps the environment but directly aids communities as well.

Incorporate these considerations into your sourcing strategy to align with evolving expectations.

6. Technology Integration

Embrace technology to streamline and enhance global sourcing processes.

Supply chain management software, data analytics, and communication tools can facilitate real-time tracking, efficient collaboration, and informed decision-making.

Navigating Challenges and Seizing Opportunities

1. Cultural Understanding

Cultural differences can impact communication and business practices.

Invest time in understanding the cultural nuances of your sourcing partners to foster effective collaboration.

2. Communication is Key

Clear and open communication is the foundation of successful global sourcing.

Bridge language gaps and ensure all parties have a shared understanding of expectations, timelines, and requirements. Whether you’re partnering with an owner operator with decades of trucking experience or a manufacturer halfway around the world, effective communication remains paramount.

3. Intellectual Property Protection

Protecting your intellectual property is paramount.

Utilize legal contracts, patents, and trademarks to safeguard your innovations and prevent unauthorized use.

4. Customs and Regulations

International trade regulations can be complex.

Stay up-to-date with customs procedures, tariffs, and import/export regulations to prevent costly delays and compliance issues.

Conclusion: Embrace the Global Advantage

Effective global sourcing success hinges on a blend of strategic planning, risk management, ethical considerations, and technological integration. As businesses expand their horizons, those adept at sourcing wisely from the global marketplace will be best positioned for growth and innovation. 

By embracing the global advantage, companies can harness the world’s best resources and bring their visions to life internationally.

This was a guest post by Christopher Garcia.

Author Bio:

Christopher Garcia is a talented and creative writer whose words flow gracefully across the pages, breathing life into captivating characters and enchanting worlds. Since his youth, he has sought refuge in the realm of literature, cultivating a deep love for reading and unearthing the enchantment of narrative craft.

The post The Art of Effective Global Sourcing: Strategies for Businesses to Import Wisely appeared first on Universal Cargo.

In the supply chain management process, invoice disputes are very common. These disagreements may occur for a number of reasons, including inconsistencies in the prices, quantities, quality problems, delivery delays, and misunderstandings. In this article you will learn about the effective methods for handling invoice disputes at every stage of the supply chain.

Effective Methods for Handling Invoice Disputes across the Supply Chain

1. Collaboration and Communication

For the purpose of preventing and resolving disagreements, open communication between all parties is essential. You should maintain open lines of communication with consumers, logistical partners, and suppliers which will help in seeing possible problems early and resolving them quickly. Collaboration makes sure that everyone is on the same page and lessens the chance of miscommunications.

2. Quality Assurance Measures

At many points along the supply chain, strict quality control methods can be used to help find problems before they become disputes. Regular quality inspections can help to avoid issues with product quality, quantity inconsistencies, and transportation damage.

3. Standardized Processes

To reduce errors invoicing procedures, order placement and fulfillment should be standardized. This standardized process should clearly define conditions for pricing, quantity and quality requirements. With standardized processes settlement of disputes will be easy as it allows the basis for comparison.

4. Precise and Clear Documentation

You should keep precise and detailed documentation throughout the supply chain process. This comprises the delivery receipts, contracts, shipping papers, and purchase orders. By establishing a transparent trail of the agreed-upon terms and conditions, clear documentation can be used as proof to resolve disputes.

5. Process for Dispute Escalation

It is crucial to have a clear mechanism for resolving disputes. You should specify the procedures to be followed in the event of a dispute. This can entail elevating the problem to upper management or, if required, enlisting legal teams. A clearly established process makes sure that disagreements are settled in a methodical manner.

6. Timely Review and Approval

Reviewing and approving bills promptly helps prevent pointless delays and lowers the likelihood of disputes. The delays in approval may cause misunderstandings about the terms of payment and the quantity ordered, thus leading to disputes between the parties.

7. Supplier and Customer Relationship

It is good to maintain a solid relationship between the suppliers and customers to settle a disagreement politely. When conflicts emerge, a history of good connections can encourage more cooperative problem-solving attempts rather than a hostile attitude.

8. Mediation and Negotiation

When problems arise, choosing mediation or negotiation over taking legal action might be more effective and less adversarial. In mediation, an unbiased third party assists the parties to come to a mutual decision. Through negotiation, both parties are able to voice their issues and search for a solution.

9. Technology Integration

The invoicing process can be streamlined by utilizing technological solutions like supply chain management software and electronic data interchange (EDI). By facilitating correct data interchange, lowering manual errors, and offering real-time visibility into the supply chain, these systems improve the effectiveness of dispute resolution.

In addition to streamlining the invoicing process, integrating spend control solution into the supply chain management framework further enhances operational efficiency and cost-effectiveness. These solutions enable organizations to gain granular insights into their expenditure across various procurement categories, allowing for better budget allocation and resource optimization. By consolidating purchasing data and automating approval workflows, businesses can effectively monitor and manage their spend, identifying potential areas for savings and implementing strategic cost-saving measures.

10. Continuous Improvement

When an invoice dispute has been resolved, spend the time to determine the underlying problem and make changes to the process to avoid repeating the same mistakes. Process refinement, dispute avoidance, and increased supply chain efficiency are all aided by continuous improvement.

Conclusion

It takes a combination of effective communication, standardized procedures, technology integration, and cooperative efforts to manage invoice disputes throughout the supply chain. Businesses can reduce disruptions, preserve positive connections, and guarantee accurate financial records by putting these measures into practice. Effective dispute resolution is essential to the supply chain’s overall performance and sustainability in a fast-paced business climate.

This was a guest post by Stewart Dunsmore.

Author Bio

STEWART DUNSMORE
Senior Vice President, Supply Chain Services

Stewart, a native of Canada, currently resides in Dallas, Texas. For the majority of the last 20 years, Stewart has worked on managing and optimizing the worldwide supply chain. For some of the biggest organizations in the world, Stewart oversaw the design, installation, and maintenance of transportation management systems. He is the go-to person for nVision Global when it comes to Impact TMS and all of its ancillary modules.

Linkedin URL – https://www.linkedin.com/in/stewart-dunsmore-2753499/

The post 10 Tips for Effective Management of Invoice Disputes across the Supply Chain appeared first on Universal Cargo.

Whether you are aware of it or not, the impact of global supply chain disruptions on imports and exports will be felt. However, if you learn more about the subject, you can reduce its effects on your business operations!

Understanding Global Supply Chains

Understanding global supply chains is crucial for U.S. businesspeople engaged in imports and exports in today’s interconnected world. A global supply chain encompasses the intricate network of companies, resources, and processes that bring products from raw materials to the end consumers worldwide. From manufacturers, suppliers, and distributors to transportation and logistics providers, each step plays a role in the journey of goods.

So, by comprehending this complex web, importers and exporters can identify potential vulnerabilities and optimize their operations. They can also anticipate and adapt to disruptions caused by events like natural disasters, trade disputes, or pandemics. Thus, they ensure a steady flow of goods and maintain customer satisfaction. So, embracing a holistic view of global supply chains empowers businesses to make informed decisions and thrive in an increasingly dynamic and competitive global marketplace.

The Cascading Effect of Disruptions

The impact of global supply chain disruptions on imports and exports is big during peak shipping seasons. When unexpected events, such as port closures, labor strikes, or natural disasters, disrupt one region’s operations, it can reverberate throughout the supply chain.

For example, if a major port experiences delays in unloading cargo, it leads to backlogs, affecting trucking and distribution networks. Consequently, suppliers may struggle to meet production schedules, causing shortages and impacting exports. Importers may face shipment delays, affecting their ability to meet customer demand.

This domino effect extends to other industries, as manufacturers may experience production slowdowns due to missing components or materials.

Economic Impact on U.S. Businesses

The economic impact on U.S. businesses stemming from global supply chain disruptions, such as rising freight rates, can be substantial. Increased transportation costs can directly affect profit margins, making imports and exports more expensive. As freight rates soar, businesses face tough decisions, like passing the costs onto customers or absorbing them, potentially impacting competitiveness.

Moreover, prolonged disruptions can lead to lost revenue due to delayed shipments and production slowdowns. Small and medium-sized enterprises (SMEs) may be particularly vulnerable, as they often lack the financial resources to navigate such challenges. Rising freight rates can also trigger a ripple effect on related industries, affecting retail prices and consumer spending.

Adapting to Supply Chain Disruptions

Adapting to supply chain disruptions is imperative to stay resilient in today’s volatile business landscape.

Diversifying suppliers and markets can reduce dependence on a single source and mitigate risks. Strengthening risk management strategies also allows businesses to identify and address potential vulnerabilities proactively. Embracing technology for monitoring and transparency facilitates real-time tracking and problem-solving, too.

Moreover, collaboration with suppliers and customers fosters mutual support during challenging times. Another option is implementing sustainable practices, which enhance long-term stability and minimize environmental impact. Utilizing data and analytics also empowers informed decision-making for quick responses. Finally, flexibility and agility in workforce training enable businesses to navigate uncertainties effectively.

Legal and Regulatory Considerations

Navigating the legal and regulatory landscape is crucial for U.S. importers and exporters amidst supply chain disruptions. After all, understanding trade policies and tariffs helps avoid unexpected costs and compliance issues.

Contractual obligations, including force majeure clauses, need careful review and negotiation to protect businesses from unforeseen events. Moreover, robust intellectual property protection safeguards proprietary technologies and prevents infringement during chaotic times.

Additionally, staying abreast of changing regulations and customs procedures prevents delays and penalties at borders. If necessary, engaging legal counsel and trade experts, like experienced freight forwarders, can provide valuable guidance on international laws and dispute resolution mechanisms.

Collaborative Approaches in the Supply Chain

Collaborative approaches in the supply chain can be a game-changer for businesses facing disruptions. That is because building stronger partnerships with suppliers and customers fosters a sense of camaraderie and mutual support during challenges. Engaging with government and industry associations also allows businesses to advocate for common interests and drive positive change.

Collaborative solutions, such as sharing real-time data and forecasts, further enable better stakeholder planning and coordination. And by pooling resources and expertise, supply chain participants can collectively develop contingency plans and risk mitigation strategies. Moreover, joint investments in technology and infrastructure improve efficiency and reduce vulnerabilities. So, leveraging the power of collaboration enhances supply chain resilience, fosters innovation, and opens new growth opportunities.

Enhancing Resilience Through Innovation

In today’s dynamic business landscape, enhancing resilience through innovation is crucial. As disruptions become more frequent, businesses must adapt and innovate to stay ahead.

Investing in technology and automation can streamline supply chain processes, making them more agile and responsive to challenges. And embracing sustainable practices improves environmental impact and ensures long-term stability. Moreover, implementing data analytics and AI-driven solutions enhances real-time visibility and decision-making capabilities, enabling proactive responses to potential disruptions.

So, innovation is as important as finding a reliable logistics partner! By continuously seeking new ways to improve operations and anticipating future demands, U.S. businesses can build a more resilient supply chain capable of weathering disruptions while maintaining the smooth flow of goods to serve their customers better and thrive in the global marketplace.

The Human Factor in Supply Chain Management

The human factor plays a crucial role in supply chain management. As such, trained employees are indispensable for navigating the complexities of global logistics. Their expertise and adaptability allow businesses to respond swiftly to disruptions and find creative solutions. Whether it’s skilled warehouse personnel ensuring efficient inventory management or knowledgeable transport professionals optimizing routes, human resources are the backbone of a resilient supply chain.

For instance, Phillips Moving and Storage points out that trained employees are indispensable. So, investing in workforce training and development is key to building a capable and agile team that can tackle unforeseen challenges. Moreover, fostering a positive work environment and supporting employee well-being contribute to better retention rates and overall operational excellence.

Recognizing the value of the human factor empowers U.S. businesses to overcome supply chain hurdles!

Conclusion on the Impact of Global Supply Chain Disruptions on Imports and Exports

Understanding the impact of global supply chain disruptions on imports and exports empowers you to battle it better. So, as long as you approach the task with a long-term view, we know you’ll weather the challenges.

This was a guest post by Emily Sullivan.

Author Bio

Emily Sullivan is a distinguished economist specializing in international trade. Her work allows her to offer practical insights into managing global supply chains, providing invaluable expertise for navigating the interconnected world economy.

The post The Impact of Global Supply Chain Disruptions on Imports and Exports appeared first on Universal Cargo.

Beneath the vast and mysterious expanse of our oceans lie secrets untold – tales of forgotten shipwrecks, lost cargo, and historical artifacts that have vanished beneath the waves. But fear not, for amidst these depths, a group of brave souls have mastered the extraordinary art of marine salvage, turning these perilous waters into their stage for daring rescue missions.

Marine salvage, an awe-inspiring blend of science, engineering, and sheer tenacity, is more than just a profession; it’s a captivating tale of resilience and ingenuity. These modern-day adventurers venture into uncharted waters with every mission, chasing whispers of history and heroism. 

From centuries-old shipwrecks to contemporary maritime mishaps, each rescue mission is a high-stakes drama that demands meticulous planning and cutting-edge technology. 

Marine salvage has been an integral part of our maritime narrative, preserving maritime artifacts that hold the secrets of our past and ensuring the safety of modern-day seafarers. From ancient amphorae laden with tales of trade routes to the remnants of once-mighty vessels, these salvage missions breathe life into forgotten chapters of history.

So, strap on your life jackets and prepare to be captivated by the enthralling world of marine salvage. As we sail through the annals of time and delve into daring oceanic rescue missions, you’ll discover the triumphs, challenges, and heart-stopping moments that define this extraordinary art. 

Unveiling the Depths: Exploring the World of Marine Salvage

The art of marine salvage is a captivating blend of history, adventure, and technical expertise. Throughout the ages, humans have sought to recover lost treasures, sunken vessels, and historical artifacts from the ocean’s depths, giving rise to the fascinating practice of marine salvage.

The roots of marine salvage can be traced back to ancient civilizations, where brave individuals first ventured into treacherous waters to retrieve valuable cargo and repair damaged ships. Over time, the art of marine salvage has evolved, encompassing a wide range of specialized skills and advanced technologies.

Lost Treasures Beneath the Waves

One of the most alluring aspects of marine salvage is the exploration of shipwrecks and the stories they hold. Shipwrecks, once tragic accidents, now serve as time capsules, preserving past civilizations’ cultural and historical heritage. From ancient trade routes to battles of centuries past, each shipwreck has a tale to tell.

Notable shipwrecks like the RMS Titanic and the Spanish galleons laden with treasure have captured the imagination of people worldwide. These wrecks have become more than mere shipwrecks; they are symbols of human endeavors, triumphs, and tragedies.

Challenges and Perils of Oceanic Rescue Missions

Marine salvage is not without its challenges and dangers. Salvagers face unpredictable weather conditions, demanding underwater environments, and potential hazards the wrecks pose. The immense pressure and darkness of the deep sea can test the limits of human endurance and technological capabilities.

Environmental considerations also play a crucial role in marine salvage operations. Salvagers must be mindful of the delicate marine ecosystems and minimize their impact during salvage operations.

The Art and Science of Marine Salvage

The art of marine salvage is a masterful blend of scientific knowledge, engineering skills, and creative problem-solving. Salvagers employ various tools and technologies, such as remotely operated vehicles (ROVs), side-scan sonar, and advanced diving equipment, to conduct surveys and carefully plan salvage missions.

Each salvage operation is unique, demanding meticulous planning and execution. To devise effective recovery strategies, salvagers must analyze various factors, such as the wreck’s condition, the surrounding environment, and potential risks.

Preserving History: Salvaging Artifacts and Maritime Heritage

Marine salvage is not solely about recovering treasures but is also crucial in preserving maritime heritage. Salvaging artifacts and shipwrecks offers a glimpse into the past, providing valuable insights into the lives, cultures, and technologies of bygone eras.

Marine salvagers often collaborate with historians, archaeologists, and preservationists to ensure that recovered artifacts are carefully documented, conserved, and shared with the public. 

These efforts contribute to our collective understanding of history and enrich the cultural legacy for future generations.

Modern-day Marine Salvage: A Look at Contemporary Missions

Marine salvage plays a vital role in maritime safety, commerce, and environmental protection in the modern era. Salvagers respond to emergencies such as ship groundings, oil spills, and vessel wrecks, mitigating potential ecological disasters and ensuring maritime safety.

Notable contemporary salvage missions have successfully recovered valuable cargo, damaged ships, and even aircraft from underwater environments. These missions showcase the enduring importance of marine salvage as a critical aspect of modern maritime operations.

The Future of Marine Salvage: Technology and Sustainability

As technology advances, the future of marine salvage holds promise. Innovations, such as autonomous underwater vehicles (AUVs), 3D scanning, and artificial intelligence, will revolutionize salvage operations, making them more efficient and safer.

Moreover, sustainability is becoming an integral part of marine salvage practices. Salvagers are increasingly adopting eco-friendly measures to minimize the impact on marine ecosystems during salvage operations, ensuring a harmonious coexistence with the ocean.

Conclusion

Marine salvage is an extraordinary realm where history and adventure intertwine beneath the waves. Through the art of marine salvage, brave individuals and skilled professionals have unearthed lost treasures, revealed captivating stories of the past, and safeguarded our maritime heritage for future generations.

From ancient shipwrecks laden with historical significance to modern-day rescue missions protecting the environment and ensuring maritime safety, marine salvage plays a vital role in our interconnected world.

As technology advances and sustainability becomes a focal point, the future of marine salvage holds tremendous promise. Innovations will push the boundaries of what is possible, enabling salvagers to explore even deeper into the ocean’s depths.

Let us celebrate the courage, resourcefulness, and dedication of those who venture into the unknown to recover lost treasures and preserve our maritime legacy. Their unwavering commitment ensures that the enigmatic depths of the sea will continue to share their mesmerizing stories, inspiring generations to come.

This was a guest post by Christopher Garcia.

Author Bio

Christopher Garcia is a gifted and imaginative wordsmith whose pen dances effortlessly across the pages, giving life to characters and worlds that captivate the hearts and minds of readers. From an early age, he found solace in the world of books, becoming a voracious reader and discovering the magic of storytelling.

The post The Art of Marine Salvage: A Riveting Tale of Oceanic Rescue Missions appeared first on Universal Cargo.

If you are undecided on the best method of shipping goods, then we have a guide that might just help! Check out our guide on how to unleash your shipping potential: the power of ocean freight for business growth, and decide if this is the ideal choice for you.

A Bit More on the Nature of Ocean Freight

Ocean freight is a crucial component of international trade, offering businesses a cost-effective and efficient shipping solution. And while air freight may boast faster transit times, ocean freight triumphs in various other categories.

It provides a significant advantage in terms of cost savings, especially for larger shipments, thanks to economies of scale. With its vast global reach, ocean freight enables businesses to tap into new markets and expand their customer base. Additionally, it offers flexibility and scalability, accommodating shipments of various sizes and types of cargo.

Despite longer transit times, ocean freight remains a preferred choice for businesses, striking a balance between affordability and reliability. In an era of growing environmental consciousness, it’s worth noting that ocean freight has a lower carbon footprint compared to air freight. Therefore, understanding the power of ocean freight for business growth is paramount for businesses seeking sustainable growth and global success.

The Cost-Effectiveness and Efficiency of Ocean Freight

The power of ocean freight for business growth shines through when it comes to shipping goods. This is because businesses are constantly seeking cost-effective and efficient solutions. And this is where ocean freight stands out.

The experts at helixmoveva.com emphasize the significant cost savings that can be achieved through ocean freight, particularly for larger shipments or even for a particularly large international move. By leveraging economies of scale, businesses reduce their transportation costs per unit.

Additionally, ocean freight is highly efficient in handling large volumes and long-distance transportation. It allows businesses to ship their goods to various destinations worldwide without breaking the bank.

The experts advise businesses to carefully plan their shipments and work with reliable freight forwarders to optimize their supply chains and ensure smooth operations. By understanding the cost-effectiveness and efficiency of ocean freight, businesses can maximize their shipping potential and drive growth while maintaining their bottom line.

The Reach and Potential for Market Expansion of Ocean Freight

In today’s globalized economy, businesses are constantly looking for ways to expand their market reach. Ocean freight offers a powerful solution with its extensive global reach. With ports spanning the world, businesses can tap into new markets and broaden their customer base through ocean freight. It allows them to ship their goods to virtually any major port worldwide, opening doors to new opportunities and revenue streams.

Whether entering emerging markets or increasing a presence in established ones, ocean freight enables businesses to reach their target audiences across borders. This global reach fosters market expansion and facilitates international trade. By leveraging the power of ocean freight for business growth, businesses unlock their shipping potential and embark on a journey of growth and success on a global scale.

The Flexibility and Scalability of Ocean Freight

Flexibility and scalability are key factors that make ocean freight an ideal shipping option for businesses. Ocean freight offers the flexibility to accommodate shipments of various sizes, from small to large volumes. Moreover, it is even perfect for shipping oversized cargo that may not be feasible with other modes of transportation. Ocean freight can handle it all, whether it’s heavy machinery, vehicles, or bulky goods.

Additionally, ocean freight provides scalability as businesses can leverage the capacity of ocean vessels to scale their operations. As their business grows, they can easily adapt and increase the volume of their shipments without significant disruptions. This flexibility and scalability make ocean freight a reliable choice for businesses looking to optimize their supply chains and meet their shipping needs efficiently.

Being Mindful of the Environment and Why Ocean Freight Is Preferable

Environmental considerations have become increasingly important in the shipping industry, and ocean freight offers some significant advantages in this regard. Compared to air freight, ocean freight has a lower carbon footprint due to its lower fuel consumption. This makes it a more sustainable choice for businesses concerned about reducing their environmental impact.

Furthermore, the industry has been actively exploring and adopting greener technologies and practices to minimize its ecological footprint further. From using cleaner fuels to implementing energy-efficient measures on vessels, efforts are being made to make ocean freight more environmentally friendly. By choosing ocean freight as their preferred shipping method, businesses can align with sustainable practices and contribute to the preservation of the planet. It’s an opportunity to balance business growth with responsible environmental stewardship.

The Challenges of Leaning on the Power of Ocean Freight for Business Growth

While ocean freight offers numerous advantages, it does come with its fair share of challenges. Long transit times and logistical complexities are among the key hurdles businesses may face. However, there are effective mitigation strategies to overcome these challenges.

Proper planning is crucial to ensure timely shipments and minimize delays. Businesses should optimize their supply chains by coordinating with freight forwarders and other stakeholders. Choosing reliable and experienced logistics partners can also help navigate the complexities of ocean freight. By working with professionals who understand the intricacies of international shipping, businesses can streamline their operations and mitigate potential risks.

Additionally, leveraging advanced tracking and monitoring technologies enables real-time visibility and better management of shipments. By proactively addressing these challenges and implementing robust mitigation strategies, businesses can harness the power of ocean freight for business growth while ensuring a smooth and efficient shipping experience.

The Tech and Innovation in Ocean Freight

Technology and innovation have transformed the landscape of ocean freight, making it more efficient and reliable than ever before. With the advent of digital platforms and automation, businesses can now streamline their shipping processes and enhance transparency. Technologies like blockchain ensure secure and traceable transactions, while IoT devices enable real-time tracking and monitoring of shipments. These advancements improve operational efficiency and enhance customer satisfaction by providing visibility and control.

Furthermore, emerging technologies like artificial intelligence and predictive analytics are revolutionizing the industry by optimizing route planning, demand forecasting, and cargo handling. As businesses embrace these innovative solutions, they can unlock new opportunities for growth and gain a competitive edge in the market. By harnessing the power of technology and staying abreast of industry advancements, businesses can easily navigate ocean freight’s complexities and maximize their shipping potential.

Using the Power of Ocean Freight for Business Growth

With our guide on how to unleash your shipping potential: the power of ocean freight for business growth, we’re sure you’ll make the most of this method of transporting goods! Just remember to be on the lookout for the newest developments that will make your ventures even more profitable.

This was a guest post by Olivia Montgomery.

Author Bio

Olivia Montgomery is an accomplished writer passionate about delivering engaging and informative content. With a background in business and logistics, she specializes in crafting articles that explore various facets of the shipping industry.

The post Unleash Your Shipping Potential: The Power of Ocean Freight for Business Growth appeared first on Universal Cargo.

Businesses that import or export goods cannot afford to turn a blind eye to the detrimental impact their supply chain processes have on the communities around them. From air and noise pollution to soil degradation and resource depletion, the impact can be far-reaching and long-lasting. 

However, supply chain sustainability presents an opportunity to not only make a profit but also do environmental good.

Effective materials management is a crucial aspect of supply chain management for manufacturers. It involves planning and executing your supply chain to meet your raw materials requirements, including material flow, availability, quality, price, and demand. This encompasses all stages from the purchase of raw materials to storage, loading and unloading in a warehouse, transporting, and receiving.

In the following sections, we will delve into the sustainability benefits of efficient materials management and explore ways to enhance your own business’ materials management process.

1. Reduce Raw Material and Inventory Waste

Acquiring more raw materials than necessary increases the likelihood of waste, eating into profits and contributing to landfills. In addition, purchasing substandard, defective, or unnecessary raw materials wastes resources and exacerbates environmental impact.

Overproduction can also result from excess storage of raw materials, tempting businesses to convert them into end-products in the hopes of eventually matching demand. However, this can lead to excess inventory, obsolete or expired goods, and inventory waste. Shockingly, around 8% of excess inventory, equivalent to about $163 billion globally, becomes waste each year.

Efficient materials management aims to acquire the precise type, quantity, and quality of raw materials required, avoiding waste and minimizing the possibility of overproduction.

2. Decrease Pollution

Transporting materials to production facilities using air, road, rail, or sea transport contributes to environmental damage through increased pollution from fuel combustion and noise pollution. In fact, according to the WTO’s 2021 Trade and Climate Change brief, international import-export trade (including the production and transport of goods) is responsible for generating 20-30% of global greenhouse gas emissions. 

Similarly, operating production machinery for extended periods generates additional air and noise pollution.

Efficient materials management reduces unnecessary transport and production machinery use, limiting carbon and noise footprint. By moving and manufacturing only what you need, businesses can reduce the frequency of equipment operation, leading to a smaller environmental impact.

3. Reuse Materials

The concept of reusing and recycling is familiar in households, where bottles, boxes, and containers are often repurposed for different uses. Similarly, industrial and commercial waste often contains items that are not entirely useless.

Yet, businesses regularly dispose of large quantities of waste that could be repurposed or reused internally. In the US alone, industrial waste production reaches a staggering 7.6 billion tons annually.

Good materials management involves identifying opportunities to repurpose raw materials and end-products that would otherwise become waste. This approach reduces waste and creates additional value for businesses.

4 Tips to Easily Improve Your Materials Management

1. Develop a Materials Management Plan

The foundation of efficient materials management is a solid materials management plan. This plan should outline a business’s strategies, goals, and intended outcomes for materials management while addressing any current process weaknesses.

Let’s say that a company with excess inventory and high storage costs develops a materials management plan with these goals:

• reducing excess inventory
• optimizing raw material purchasing
• implementing just-in-time inventory management.

All relevant stakeholders, including production teams, finance teams, logistics providers, and suppliers, are involved in the plan’s development. By collaborating to identify weaknesses in the current process and develop strategies for improvement, the company can create a more efficient materials management process that reduces waste, lowers costs, and adds value to the business.

2. Implement Inventory Management Practices

Inventory management is arguably the most important pillar of materials management. Without proper inventory control, businesses risk overstocking or understocking raw materials, which can lead to waste, increased costs, and missed production deadlines. 

Utilizing inventory software, barcode technologies, and material tracking tools can help ensure that raw materials are available when needed and prevent overstocking.

For example, a manufacturing company implements a just-in-time inventory system. Then, the company can use real-time data to make informed purchasing decisions and ensure that raw materials arrive only when they’re needed for production. 

3. Build Strong Supplier Relationships

Suppliers are at the center of materials management. If they are not fulfilling their end of the bargain, the high efficiency of your internal materials management process won’t matter much. 

Choose suppliers with a track record for reliability and scalability.  Building strong relationships with such suppliers can help ensure that materials are delivered on time, meet specifications, and are of the right quality and price.

For instance, a company that imports goods from overseas could face significant delays and disruptions if its suppliers are unreliable or do not follow international regulations. This could result in lost sales opportunities, unhappy customers, and increased costs.

4. Continuous Monitoring, Analysis, and Improvement

That your materials management process worked well in the past does not mean it will work as well today and in the future. How do you know how well your process is working? Data analysis. Continuously collect and analyze data on supplier performance, material use, and inventory levels to pick up demand/supply trends and market shifts then make the appropriate decisions. 

Where possible, leverage artificial intelligence, machine learning, the Internet of Things, and other emerging technology to improve the process. Regularly review supply chain metrics and make changes to the process in order to increase efficiency, minimize waste, and boost customer satisfaction.

For example, a business that exports perishable foods could use IoT sensors to track the temperature of the food during transit, and analyze the data to ensure they arrive at their destination in optimal condition.

Conclusion

Improved materials management is a key aspect of achieving sustainability in the supply chain. By optimizing the use of resources and reducing waste, businesses can not only achieve cost savings and competitive advantage but also contribute to a cleaner environment. Good materials management can help improve the eco-sustainability of sourcing and minimize negative environmental impact.

There are at least dozens of possible strategies for environmental sustainability and not all will work for you. Evaluate your supply chain, determine the most suitable strategy, apply it, and continuously improve.

This was a guest post by Matilda Odell.

Author Bio

Matilda Odell works as the Content Creation Specialist at TAWI, a brand by Piab Group, which enables smart lifting optimized for people and businesses. Piab helps its customers to grow by transforming their businesses with increased automation. If you have any questions about lifting equipment such as lifting trolleys or other lifting devices, Matilda is the person to talk to.

The post How Supply Chain Sustainability Benefits From Improved Materials Management appeared first on Universal Cargo.

Shipping oversized cargo can present a unique set of challenges that require specialized knowledge and expertise. Oversized cargo refers to any shipment that exceeds the standard size or weight limitations for transportation equipment, such as trucks, trains, or cargo ships. Therefore, navigating the complex logistics involved in transporting oversized cargo can be daunting for anyone who imports and exports goods. From regulatory and permitting requirements to equipment availability and suitability, route planning and execution, handling and loading, and communication and coordination, there are numerous factors to consider when shipping oversized cargo. So, join us as we discuss the challenges of shipping oversized cargo and how to navigate complex logistics.

Requirements and Regulations to Observe When Shipping Oversized Cargo

The first of the challenges of shipping oversized cargo is the regulatory and permitting requirements. These requirements vary by country and can include permits for road use, bridge crossings, and even air travel. Additionally, there may be specific regulations regarding the size, weight, and type of cargo transported through certain areas. Custom clearance procedures and documentation requirements can also be complex and time-consuming for international exports and imports. The challenges of obtaining and complying with these regulatory and permitting requirements can be significant, especially for businesses new to the process or operating in unfamiliar regions. Failure to comply with these requirements can result in costly delays, fines, or even the impounding of cargo. Therefore, businesses must work with experienced logistics partners who can navigate these requirements efficiently and effectively.

The Challenges of Equipment that Can Handle Shipping Oversized Cargo

Shipping oversized cargo requires specialized equipment that can handle the weight and size of the cargo. This can include flatbed trailers, lowboy trailers, modular trailers, and cranes, among others. The challenges of finding and procuring the necessary equipment can be significant, especially for businesses that do not have access to their own fleet of specialized transportation equipment. Even when equipment is available, it may not be suitable for the specific type of oversized cargo you are transporting. This further complicates the logistics of the shipment. Each type of equipment has its strengths and limitations, and choosing the right equipment for a specific shipment requires careful consideration of factors such as cargo weight, dimensions, and destination. Working with logistics partners who have a deep understanding of the equipment requirements for oversized cargo shipments can help businesses navigate these challenges and ensure that their shipments are transported safely and efficiently.

Loading and Handling Oversized Cargo

If you think that just securing the specialized equipment such as cranes, forklifts, and rigging is the full extent of the troubles when trying to load up or handle oversized cargo, you are mistaken. The challenges involved in safely and efficiently loading oversized cargo include limited space, uneven terrain, and restrictions on using certain equipment in certain areas. Additionally, you must properly secure the cargo to prevent shifting or damage during transport. Successful handling and loading of oversized cargo require experienced professionals. And they need to be familiar with the equipment and techniques necessary to safely move and secure the cargo. This can include choosing the right type of equipment and using specialized rigging techniques to secure the cargo in place. Thankfully, since freight rates are falling across the board, it’s possible to offload all this trouble of shipping oversized cargo relatively cheaply.

Planning Out Your Oversized Cargo Shipment Route

Another challenge of shipping oversized cargo is route planning. Identifying the optimal route for a shipment involves considering many factors, including road and bridge weight limits, clearance heights, traffic congestion, and potential obstacles such as narrow bridges or tight turns. In addition to identifying the optimal route, the execution of the plan requires close coordination with transportation providers. It even involves cooperation with regulatory agencies that ensure that the shipment can be transported safely and without disruption. As the moving and storage experts from Transparent International NYC point out, you also need to account for the turnover of goods at certain points. And even temporary storage if stops are required. All of which require a lot of careful planning well ahead of the time of shipment.

Communication and Coordination Are Crucial for Oversized Cargo Shipping

Effective communication and coordination are crucial in successfully transporting oversized cargo, especially for international exports and imports. Coordinating multiple parties involved in the shipment, such as carriers, customs brokers, and regulatory agencies, can be challenging. And miscommunication or delays result in costly disruptions to the shipment. To address these challenges, logistics partners use a variety of technologies and tools to facilitate communication and coordination, such as GPS tracking, real-time shipment monitoring, and online collaboration platforms. These tools allow for real-time updates and information sharing among all parties involved in the shipment. In turn, this ensures that everyone has the information they need to keep the shipment on schedule and mitigate any potential issues. Of course, effective communication and coordination can help businesses overcome the other challenges of shipping oversized cargo. Furthermore, it will allow them to transport their cargo safely and efficiently across borders and around the world.

Overcoming the Challenges of Shipping Oversized Cargo

As we’ve seen in our guide to the challenges of shipping oversized cargo and how to navigate complex logistics, this task presents a lot of obstacles. Regulatory and permitting requirements, equipment availability and suitability, route planning and execution, handling and loading, and communication and coordination. All of them will get in the way of a safe shipment of oversized cargo. However, if you take the time to properly account for them all and establish careful route planning, close coordination with carriers and regulatory agencies, effective communication and collaboration among all parties involved in the shipment, and the use of specialized equipment and techniques for handling and loading the cargo, you will be successful! Regardless of the challenges, your shipment should arrive at the destination without delays or damage. And you’ll be able to reap the full profits of your business venture.

This was a guest post by Gale Richards.

Author Bio

Gale Richards is a logistics expert and seasoned writer with over ten years of experience in the shipping industry. His expertise lies in the transportation of oversized cargo, and he has authored numerous articles on navigating complex logistics.

The post The Challenges of Shipping Oversized Cargo and How to Navigate Complex Logistics appeared first on Universal Cargo.

As a professional in any kind of field, you are expected to have specific educational qualifications that will make you fit for performing a specific job. But even if you already got the job you wanted or you have been working in the industry for years, it is still important to keep learning.

By improving your qualifications and constantly looking for ways to upgrade your skills, you will maintain your status as an expert and will be able to perform your job well. This is precisely why you might be interested in getting the export/import certificate (EIC) and improving your qualifications this way. Here’s why it is important for internal shipping.

What Is an Export/Import Certificate (EIC)?

An export/import certificate or EIC is a type of certification you can get after completing a program dedicated to it. Essentially, the program aims to provide knowledge (both theoretical and especially practical) about conducting export and import transactions and activities as well as managing an international business.

The program was developed by an expert from the International Chamber of Commerce (ICC) and covers a fairly wide range of topics, including international business, export and import finance and security, international logistics, and more. It is aimed at different international trade professionals such as export and import managers, forwarders and carriers, trade finance bankers, trade lawyers, insurance providers, customs brokers, and others.

Why Is an EIC Important?

An EIC will be valuable for a very wide range of professionals, so depending on what you do, there could be different reasons to complete the program and get the certification. If you are a professional handling communication with a logistics company that manages your export and import, then getting an export/import certificate will help you ensure that the logistics company is doing its job well.

It’s best to look at the different kinds of topics you will study during the program that will prepare you to get the EIC. The topics can be grouped into three main subject areas:

#1 International Business Transactions and Contracts

Studying international business transactions and contracts will help you:

• Identify legal problems in international business.
• Negotiate and write agency and distributorship contracts.
• Know the provisions of the Convention on the International Sale of Goods (CISG).
• Identify and describe the risks, costs, and benefits of international litigation (as well as the process in which it happens).

These are not all the things you will learn about, but even simply being able to write contracts yourself is critical. Imagine if you can’t do that. You can hire an experienced writer from the writing service Trust My Paper to help you with the contracts, but you still need to have at least some basic knowledge about them to be able to participate in negotiations successfully.

#2 Export and Import Finance and Security Devices

By learning about export and import finance and security devices, you will be able to:

• Understand the payment preferences of exporters and importers.
• Easily navigate the procedures for different payment options, factoring and forfaiting, and others.
• Identify risks and various financial aspects of different payment methods.

#3 International Logistics, Shipping, and Sourcing

And lastly, when you learn about international logistics, shipping, and sourcing, you will know how to:

• Identify different transport modes and their commercial practices.
• Work with different freight forwarders and transport intermediaries.
• Use the tariffs that the World Customs Organization (WCO) determines.
• Identify the benefits and risks of changing production through international outsourcing.

As you can see, all the topics that are included in the program are extremely useful to different types of professionals which is why the program is not aimed at just one specific type of specialist. After all, it was written by a seasoned expert who worked in the industry and knows how things are done.

Even the topics that aren’t obvious are covered. For example, outsourcing. You might have some experience with it if you hired writers from the best essay writing companies before to handle your documentation, but there is still a lot you could learn about outsourcing when it comes to other types of processes and activities.

How Can You Get the Certificate?

So, how exactly can you get the export/import certificate? It’s quite simple. First, you need to decide whether it will be useful to you. Considering how many topics are covered by the program, you will likely get at least some valuable knowledge from it. But overall, the reason why the program is so great is precisely because of the selection of topics in it.

Once you are certain that you need the certificate and want to enroll in the program, you can look for online platforms that offer it. For example, the International Chamber of Commerce provides online training, including the export/import certificate program. It’s best to look for websites and organizations that you can be certain about in terms of quality. If they are established and respectable, then the program is likely legitimate.

In most cases, you can find online courses that you can take at your own pace which means there won’t be any pressure on you to complete them as quickly as possible. You will get learning materials in the form of texts, videos, case studies, and so on. Most platforms will offer the program in English (because it’s about international shipping, after all).

After completing all the modules in the program, you will need to be assessed. This is when you will have to pass an online examination with at least 70%. Once you pass the examination, you will receive an accredited certificate. If you get a score lower than 70%, you can retake the examination once you are more confident in your knowledge.

Wrapping Up

All in all, while an export/import certificate is generally valuable for international trade professionals, it will also be valuable for managers within businesses working with logistics companies as well as other specialists. It is fairly easy to enroll in an EIC program and get the certification upon its completion, so don’t hesitate to do so if that’s what you’re looking for.

This was a guest post by Jane Travis.

Author Bio

Jane Travis is an experienced freelance writer. She currently works with big content writing companies on a part-time basis. Recently, Jane decided to start her own writing blog. She shares her expertise in creative writing and hopes her readers find it useful.

The post Why Export/Import Certificate (EIC) Is Important for International Shipping appeared first on Universal Cargo.

In today’s frantic business environment, meeting deadlines is more important than ever. When shipments are late, businesses risk losing customers and money. Therefore, businesses frequently choose air freight services because of their timely and dependable deliveries. In this post, we’ll discuss how express air freight can help you and your business to keep up with strict schedules.

What is Express Air Freight?

Express air freight is a type of cargo transportation service that ensures the timely and reliable delivery of goods. Companies who need to transport goods rapidly over long distances frequently use the service. Express air freight companies employ cargo planes and terminals to ship goods worldwide quickly and efficiently. Now we will explore some reasons why air freight may be a better option for many shippers.

How Express Air Freight Works

When a business hires a logistics firm specializing in rapid air freight, that firm will take care of everything involved in the shipping process. Transporting the goods from the shipper’s location to the airport and loading them onto the cargo jet is part of this process. When the plane lands at its final destination airport, the logistics firm will transport the goods to the consignee’s location.

Benefits of Express Air Freight

Express air freight offers benefits to businesses that other delivery options can’t. It allows companies to ship things worldwide in a few days, helping them meet demanding deadlines without compromising product integrity. Rapid air freight may also provide a great deal of adaptability for businesses since logistics companies can tailor their shipping options to meet each client’s specific needs. Companies that need to react to shifting market conditions or unexpected events benefit significantly from this flexibility.

Speed and Flexibility

Express air freight’s speed is one of its main selling points. When faced with pressing deadlines, our solution helps businesses transfer products quickly and efficiently. Compared to standard shipping methods that can take weeks or months to deliver packages, rapid air freight can get packages to their destinations in a matter of days. This is paramount for businesses in the fashion and electronics industries, who have a pressing need to get their products to market as soon as possible.

Companies can have a great deal of adaptability thanks to express air freight. In response to market demand, logistics companies operating in this space may offer individualized delivery options. Door-to-door delivery or pick-up and drop-off at designated airports are two examples of the services they may offer. This flexibility is crucial for businesses carrying uncommon items, such as those transporting dangerous materials or large amounts of freight.

Reliability

Reliability is another benefit of fast air freight. Specialized logistics providers understand the significance of timely deliveries and take measures to ensure the safety and efficiency of their shipments. They use cutting-edge tracking technology to monitor shipments while in transit and have contingency plans if things go wrong along the way. Businesses might rest easy if they knew their orders would arrive on schedule and undamaged because of such dependability.

Competitive Advantage

Companies may gain a significant advantage in the market with the help of express air freight. With this service, businesses can potentially contact customers in more remote locations. This could help businesses reach a wider audience and attract more customers, boosting their bottom lines. Some consider that air is the answer for international shipping. The speed with which express air freight can respond to shifting market conditions and customer demands may help businesses stay ahead of the competition.

Environmental Impact

Despite its many benefits, fast air freight has a negative impact on the environment. The emissions of greenhouse gases from air cargo are considered a significant factor in global warming. However, quick air freight transport companies are trying to reduce their environmental impact. For instance, some businesses are putting money into biofuel production facilities and more fuel-efficient aircraft. Recycling and waste minimization are two green practices they’ve taken up. Companies concerned about their environmental impact may want to work with logistics companies that prioritize sustainability and have a proven track record in this area.

Safety and Security

Express air freight services often prioritize safety and security above everything else. Express air freight logistics providers prioritize the safety of goods in transit and take measures to ensure they arrive in one piece. They use sophisticated packaging and handling processes to prevent products from being lost or stolen, and they work closely with airlines and regulatory bodies to follow all safety and security guidelines. Experts at Rockstar Pro Movers will also tell you that the safety of the goods you transport is what people look most at. A logistics provider with a history of zero incidents and comprehensive insurance coverage is the best option for any company.

Customs and Regulations

Many countries have customs and regulations that businesses exporting goods must follow. Express air freight can help you and your company get their products through customs more easily. They work closely with customs officials and regulatory agencies to reduce delays and avoid penalties or fines. They are well-versed in customs processes, documentation requirements, and regulatory compliance. Any company looking to expand into new markets should choose a logistics firm with experience complying with those locations’ local laws and regulations.

Customer Service

Finally, businesses should examine how swiftly air freight carriers handle customer service. There are a lot of moving parts in the shipping process, and businesses may have questions or concerns at any time. If a logistics company excels at customer service, it could help enterprises to feel more in control of their shipping processes. Logistics companies should be chosen based on their promptness, communication, and clarity of information regarding delivery schedules, fees, and tracking. Air freight has been high for years and will only grow more. So take it up while the timing is right.

Conclusion

For businesses with strict deadlines, express air freight can help you a lot and are an indispensable service. It has a global reach, can deliver products quickly and reliably, and offers multiple service options to meet the varying needs of businesses. Fast air freight allows companies to ensure on-time delivery of their products and minimize the costs associated with late deliveries. Rapid air freight could be a long-term cost-saver despite its initial appearance to be more expensive. By teaming up with a seasoned logistics organization that offers rapid air freight services, businesses may speed up their shipping processes and devote more time to what they do best. With the help of express air freight, companies can meet the needs of their clients, expand their market share, and thrive in today’s cutthroat marketplace.

This was a guest post by Alice Lawrence.

Author Bio

Supply chain optimization is a particular area of interest for Alice Lawrence, a logistics expert with over ten years of experience in the field. She focuses on air freight logistics and has experience working with companies of all sizes. She uses her free time to explore the world and its many cultures.

The post How Express Air Freight Can Help You Meet Tight Deadlines appeared first on Universal Cargo.

In this post, Anthony from Ameritrans shares 10 things to look for when engaging an international shipping company.

1. Delivery Speed

The most crucial thing when choosing an international shipping company is delivery speed. The freight forwarder should be able to provide delivery services according to your demands.

It would help if you had your freight forwarder move and deliver your cargo on schedule from point A to point B, especially when sending time-sensitive items. Get a company that can provide timely service and satisfies your shipment speed.

2. Client Service

Learn about the company’s client service experience for businesses like your company. Before hiring a freight forwarder, investigate them.

Call them to find out if they are welcoming and accommodating. Make sure to inquire about the insurance plans offered by each shipping firm. Know the person you can contact in case of an issue and the hours you may do so.

3. Specialization

A specific shipping method is necessary for some things, such as perishable goods. All companies do not offer different freight forwarding services. Get more information about air freight and ocean freight. Determining your needs is crucial for this reason. Your search for a shipping company will become simpler.

You can be sure the company you choose meets your shipping requirements. If you’re shipping perishable goods, working with a shipping firm specializing in moving perishable goods with reefer containers is essential. This is because even the smallest mistake can have significant effects.

Thus, if you’re shipping perishable goods, think about the following:

·      Rating: Consider delivery expenses when setting the rates for perishable goods. Keep your package minimal and think about limiting your distribution to particular regions.

·      Duration: Be aware of the greatest time your goods can travel before they become faulty.

·      Climate: Determine the circumstances for your products’ storage. Then consult a courier to study your options and remember they can accommodate them.

4. Ready for Peak Season

Deliveries increase during peak seasons. This can cause delays and problems with schedule reliability challenges for freight forwarders.

Find a freight forwarder with reliable overseas shipping partners and that is experienced working through peak season. Such a freight forwarder can handle influxes and has plans to adapt to challenges to deliver cargo on time. This is especially important if your business also has a significant increase in orders during peak season.

5. Deliveries Scope

The majority of freight forwarders offer delivery services to major cities worldwide. But not all of them can service isolated places.

It would help if you considered the shipping company’s delivery scope to make sure it can meet your needs. Suppose you have a sizable client base in a region where shipping companies don’t generally need service—knowing where your clients’ locations are is the first step in knowing where you need 3PL (third party logistics) services. Once you have determined that, search for a global shipping provider experienced in the regions where you need to move goods.

6. Prices

Every expense must be taken into account by your company and made to flow into your cash flow. Of course, you want affordable services appropriate for your accounting records.

The fees shipping companies are rating for their services should thus play a role in freight forwarders or 3PLs you choose to hire.

7. Delivery Tracking

International delivery tracking takes time to complete. Your package may take days, weeks, or even months to reach its destination. Both you and your clients may find the wait to be a hassle. Thus, your freight forwarder may offer a useful tracking tool.

Clients may track their products to increase the transparency of the delivery process. It also gives you and your clients peace of mind. Ensure you understand the tracking method freight forwarders offer and what details you can track through them.

8. Shipping Limitations

It’s important to know about what freight forwarders can ship and where some limitations constrain their services. Of course, there are shipping constraints that come from various regulatory authorities around the world as well as limitations from specific freight forwarders and 3PLs. Shipping constraints give stipulations right down to categories of goods and size and volume limits.

Specifically, it’s essential to get information about shipping dangerous materials before you try to ship them.

9. Cargo Insurance.

You should always expect that your cargo could be damaged while in transit.

Who bears the charges if your cargo has these unfortunate incidents?

To protect your business from loss or damage of goods during transit, freight forwarders often offer insurance. If not, you’ll need to find insurance on your own, which can be a major hassle. Check with a freight forwarder about its cargo insurance options.

10. Holiday Regulations

Companies can fail over weekends and holidays because crucial suppliers may be unavailable. But you cannot stop doing everything because no providers are available on holidays.

Check with freight forwarders how they work around holidays and weekends. Ensure that your preferred 3PL can deliver your goods anytime on weekends and national holidays if that’s something your business needs.

This was a guest post by Anthony Mwangi.

Author Bio

CEO Anthony Mwangi is an expert, qualified and extensively experienced in shipping internationally, and also writes blog posts. He has over 20 years of experience and has worked in various international shipping companies in the USA. He is the owner of Ameritrans Freight, an international shipping company that offers a range of logistic services such as ocean freight shipping, RoRo shipping, air freight shipping, international moving, container shipping, and more shipping services worldwide. For more information, you can contact him and Ameritrans Freight through the following:

Email: anthony@ameritransfreight.com

Website: www.ameritransfreight.com

The post 10 Things to Consider When Engaging an International Shipping Company appeared first on Universal Cargo.

Freight rates can fluctuate wildly, and those fluctuations can have a significant impact on your bottom line. For manufacturers, these are even more challenging as you typically inbound and outbound large volumes of freight. Reducing costs and controlling risk have become top operational objectives for 2023.

No matter the size of the manufacturer, there are some core strategies companies can implement to reduce costs and verify that they’re making smart business decisions. Five such simple strategies can protect your business from increased costs and ensure that your shipments reach their destination on time and on budget.

5 Simple Strategies Businesses Can Use 

Manufacturing operations follow many existing freight needs for high-volume shippers. That means you’re working within a system that can meet some of your needs immediately, but there are areas to negotiate based on your unique orders and customers. If contending with fluctuating rates is becoming a burden, consider these methods for cost control:

1. Working with a 3PL

2. Expanding your list of suppliers and carriers

3. Reviewing modes and locations

4. Locking in rates

5. Consolidating shipments

1. Working with a 3PL

Broadly speaking, working with a 3PL can help businesses manage their shipping costs and find the best rates for their shipments. For manufacturers, the 3PL can serve as a link in their supply chain that stages goods close to end-customers, reducing last-mile expenses. If your partners order less than a full container or truckload, you can pay significantly if you’re exporting goods.

A 3PL partner can help you manage inventory and ship by cost equivalent unit (CEU), instead of partial containers. That’ll reduce your immediate export costs, while the 3PL can then split containers across multiple domestic warehouses to fill smaller orders from your customers. Goods get to your buyers faster, and it’s easier to stock inventory.

There are significant ways to save by shifting your fulfillment strategy, and a domestic 3PL provides flexibility and cost-savings opportunities across inbound, storage, fulfillment, and last-mile.

2. Expanding Your List of Suppliers and Carriers

Manufacturers, like most other partners in a supply chain, have options to shop around. For shipping, you want to utilize this for both your carrier selection and companies that provide you with raw materials, parts, equipment, and anything else you import to your production facilities. Negotiating for lower shipping rates or moving goods closer to your location prior to shipping all help you control costs.

Automation and AI tools can be especially helpful here by creating rules for your shipping needs and selecting appropriate carriers. You can automate the process to always select the lowest-cost option that promises to deliver your goods by the customer-required date. This way you meet your service-level agreement (SLA) to avoid penalties or strained relationships. 

If you’re willing to work with a 3PL or a freight forwarding partner, ask about their carrier list. You may be able to negotiate a further discount or reduction in fees if you also switch to their shipping account with a new carrier. 3PLs and similar companies negotiate rates based on volume to offer lower costs to their customers. In many instances, carriers are willing to provide more flexibility in rates or to reduce fees on certain shipments when the 3PL secures new business.

3. Reviewing Modes and Locations

Many manufacturers set their partner and shipping mode list and let it run. However, when freight rates fluctuate significantly, this can leave you with suboptimal selections. It’s time now to review your modes and lanes to see if you have the right mix for your products and your customer base.

For example, switching from the Port of Los Angeles to the Port of Savannah might yield cost savings if your customer base has moved further inland in the U.S. or to the East Coast. Depending on your port of origin, shipping to Savannah may take longer but may be more affordable than trucking FTLs across the U.S.

Look at the rail options at the ports you use and see where rail heads exist. You might be able to shift to rail for longer parts of the journey, and new rail switching services could have come online since you last looked.

Each transportation option is best for different loads and applications. Bring in experts or hire outside consultants to help you understand these differences and evaluate the moves you and your partners make. Reviewing options based on cost and your customers’ needs can also help ensure you’re selecting the right options, service levels, and more.

4. Locking in Rates

Manufacturers can directly target the fluctuating nature of shipping rates by increasing their use of contract rates and services. Typically, a contract will run for 6 to 12 months. If you think now is a good time for low rates ahead of summer and peak pricing, it could be a smart move to lock in your rates with carrier contracts.

These give you more stability and predictability for planning and ensuring your ability to afford your shipments. You’re also improving carrier relationships and have more accountability with your partners. Carriers like the predictability and it improves their ability to schedule drivers and retain talent, which makes them a win-win when you either lock in availability or a low rate.

Contracts don’t preclude you from using spot rates, which may be more affordable if freight rates overall drop significantly. You can hedge some of the bullwhip effect with these options. That said, contract rates typically favor you because carriers are more willing to negotiate to secure consistent business.

Dive deep into your financials and see if this makes sense at more than just a per-load level. If you’re struggling to make this work or worried about getting locked into a rate that’s too high, consider asking about annual, quarterly, and even “mini” (often monthly) bid pricing.

5. Consolidate Shipments

When freight rates or CEUs are higher than the norm — or higher than what you’re comfortable paying — you want to minimize loads to control costs. Shipping a full truckload is your most cost-conscious option and there are a few paths to increasing these shipment types.

Start by working with existing customers and vendors. See who has flexibility in shipping times and lead time, or who can increase their minimum order. You may need to consider extending the bulk discounts you offer to reach CEU levels. For inbound, look at ways to shore up more warehouse space and adjust production lines to allow for truckload freight at your dock doors.

Outside truckload management companies may help you consolidate your shipments by working with multiple carriers or other companies for import or inbound goods. There can be advantages to shipping via CEU and then having this broken down near ports for the last mile when you can’t reach truckload volumes on your own.

Data Impacts Every Mode and Option

Freight is becoming more challenging to track on your own. It’s time for manufacturers to invest in more transportation technology and integrate their tech stack with partners up and downstream. Look for solutions that spot trends, identify errors, and update selection based on cost and carrier performance.

As supply chains get more complex and new potential partners emerge — or past partners consolidate in mergers as freight rates bottom out — you’ll want automated data collection to make your reviews easier and more accurate. No matter which cost-savings path you pursue, better data and analysis support give you your best chance of making the right decision for every load.

This was a guest post by Geoff Whiting.

Author Bio

Geoff Whiting is the Senior Writer for Red Stag Fulfillment, an eCommerce 3PL focused on supporting heavy, bulky, and high-value products. He has more than a decade of experience covering eCommerce, technology, and business development. In his free time, Geoff enjoys exploring new cuisines and music, and trying not to get too lost listening to podcasts while walking in nature.

The post 5 Simple Strategies That Protect Manufacturing Businesses From Fluctuating Freight Rates appeared first on Universal Cargo.

Companies everywhere have been on the lookout for new ways to save expenses, boost productivity, and gain an edge in recent years. One method gaining popularity is called “nearshoring,” which is moving business activities to countries that are geographically close to the home country. This article will examine the advantages and disadvantages of nearshoring, as well as how businesses can make the most of this strategy.

What is Nearshoring?

Through nearshoring, a company outsources some of its work to a country that is geographically close by. They include things like manufacturing, customer support, software development, and administrative tasks. Nearshoring’s primary goal is to reduce expenses and maximize ROI through outsourcing without compromising the quality of the final product or service.

For instance, a U.S.-based company in search of lower production costs would consider moving some of its factories to nearby Mexico. The company can reduce the number of employees needed to produce the same level of quality while saving money. Similarly, a European company may “nearshore” its software development to countries like Romania or Poland because it is cheaper there to hire qualified IT professionals than in Europe as a whole.

Advantage: Cost Savings

A significant advantage of nearshoring is savings on expenses. By moving some of its operations to a nearby country, a company can save money on labor costs, taxes, and overhead. For instance, a U.S. company could save as much as 50 percent on labor costs in the manufacturing industry by nearshoring to Mexico. Furthermore, experts from Verified Movers always state that having local and close options is a better solution for your client as well, as you can provide them with prompt and easy solutions should any issues arise.

Advantage: Access to Skilled Labor

An additional gain of nearshoring is the accessibility of skilled workers. Many of the top nearshoring destinations have highly skilled workers familiar with various standard operating procedures. Nearshoring goals for software development include countries like Poland and Romania due to their abundance of highly qualified IT professionals.

Advantage: Proximity and Cultural Similarities

Proximity and shared cultural norms are stand out as pluses out of all the advantages and disadvantages of nearshoring. Outsourcing to a country in close proximity can allow a company to take advantage of shared cultural norms, languages, and time zones, helping give some essential benefits of outsourcing logistics. A more cohesive and effective team could be able to accomplish more as a result.

Advantage: Flexibility

When compared to other outsourcing strategies, nearshoring offers more versatility. Suppose the country of outsourcing is geographically close to the country of origin. Then the process can be more easily monitored and controlled. As a result, companies may quickly adjust their outsourcing strategies to meet their evolving needs.

Disadvantage: Language and Cultural Differences

With nearshoring, dealing with linguistic and cultural differences might be incredibly challenging. Specific nearshoring destinations may share some cultural traits with the home country, but there are usually significant differences in terms of language, business processes, and cultural norms. This could cause problems in the outsourcing process due to communication breakdowns or misunderstandings.

However, this probably ranks at the lowest level of nearshoring if you’re comparing it to outsourcing from countries farther away. That’s because as you move farther away from a business’s origin country, the greater the cultural and language differences are likely to grow. Of course, completely avoiding outsourcing to another country eliminates or, at least, greatly reduces this disadvantage. 

Disadvantage: Political and Economic Stability

An additional challenge of nearshoring is coping with political and economic uncertainty in the outsourced location. Outsourcing could be affected if several nearshoring locations are located in politically or economically unstable countries. Interruptions in the outsourcing process could occur if, for example, government policy suddenly changed or if the outsourced destination experiences an economic crisis.

Disadvantage: Quality Concerns

Out of all the advantages and disadvantages of nearshoring, another major drawback is the quality issues it can cause despite the potential cost savings for organizations. Nearshoring might backfire if the country chosen for outsourcing does not have the same quality standards as the one left behind. That could hurt customer retention and loyalty.

Disadvantage: Legal and Regulatory Issues

As a last point, nearshoring could be hampered by issues with laws and regulations. The process of outsourcing can be made more difficult by the fact that different countries have different rules and regulations pertaining to business operations. Data protection laws in the outsourced destination may differ from those in the home country. For example, those laws can make it more difficult for enterprises to meet local requirements.

How to Make the Most of Nearshoring

Despite some drawbacks, companies may find that nearshoring helps them save money and work more efficiently. Get the most out of nearshoring by following these guidelines.

Choose the Right Destination

One of the most crucial factors in whether or not nearshoring is successful is where the work is outsourced. Selecting a country with good business conditions, a skilled labor force, and a secure political and economic climate is essential. Businesses should benefit from conducting in-depth research on potential outsourcing locations before deciding.

Build Strong Relationships

The success of a nearshoring strategy depends on establishing reliable connections with outsourcing partners. Businesses must invest in outsourcing partners by building trust, fostering open communication, and aligning goals and expectations.

Ensure Quality Control

Maintaining quality control is a must when outsourcing business processes. Companies should establish clear quality standards and implement a thorough quality control approach to ensure that delivered products and services are up to par.

Manage Cultural Differences

Nearshoring requires careful management of cultural differences. Companies need to learn about the local customs and business practices at their outsourcing location to adapt their communication and management methods.

Ensure Compliance

Compliance with applicable laws and regulations is crucial when contracting out business processes. Businesses must ensure that their outsourcing partners are in full compliance with all laws and regulations and implement any additional security measures necessary to protect sensitive information and intellectual property. The potential of business process outsourcing is immense, but some things must be ensured before jumping into it.

Conclusion

Companies looking to cut costs, gain access to talented personnel, and boost productivity might benefit from nearshoring. Language and cultural barriers, political and economic uncertainty, quality worries, and legal and regulatory issues are only some of this endeavor’s challenges. Out of all advantages and disadvantages of nearshoring, the benefits can be realized by businesses who carefully choose their outsourcing location, build solid relationships with their outsourced partners, guarantee quality control, successfully navigate cultural differences, and strictly adhere to all applicable laws and regulations.

This was a guest post by Angela Murphy.

Bio:
Angela Murphy is an accomplished author and business consultant who focuses on strategies for nearshoring and using outsourcing effectively. With her background in economics and management, she has assisted numerous companies in streamlining their operations and reaching their goals.

Meta:

Keyword:
advantages and disadvantages of nearshoring

The post Exploring the Advantages and Disadvantages of Nearshoring appeared first on Universal Cargo.

Logistics and supply chain management is becoming increasingly important in today’s fast-paced business world. Outsourcing logistics services could help many businesses save time, money, and resources. In this piece, we will review eight methods to maximize ROI on logistics services through outsourcing.

1. Streamlining Processes and Improving Efficiency

One of the most significant benefits of outsourcing logistics services is the opportunity to reduce complexity and increase efficiency. By entrusting their supply chain and logistical operations to a reliable outside party, businesses are free to focus on what they do best. That has the potential to improve supply chain effectiveness by facilitating faster and more accurate delivery, reduced transportation costs, and a more streamlined supply chain overall.

Transportation and distribution networks can be managed more efficiently by using the expertise and resources of an outsourced logistics company. In addition, outsourcing can help organizations standardize and streamline their processes, making it easier to manage the supply chain and spot opportunities for growth. Especially now since there were a lot of beneficial logistic innovations due to the pandemic that can be of immense help nowadays.

2. Reducing Costs

One of the most significant benefits of logistics outsourcing is the cost savings it can provide. By consolidating their clients’ logistics needs, third-party logistics companies can reduce overall logistics costs by negotiating lower rates with carriers, spending less on transportation, and streamlining their operations. That way, even small businesses can calculate and reduce costs by outsourcing and putting those funds to better use elsewhere.

In addition, firms may save money on hiring, training, and retaining in-house logistics workers by using a third-party provider. It could also aid in reducing the costs associated with running and maintaining logistical infrastructure, such as storage facilities and transportation fleets. By relying on third parties, businesses can reduce overhead costs and boost their profits.

3. Enhancing Flexibility and Scalability

The enhanced adaptability and scalability are other significant gains of outsourcing logistics services. Regarding the supply chain, speed is of the essence in the face of fluctuating market conditions, varying demand, and other factors. There’s a chance they’ll also provide the supporting infrastructure and technology that firms need to grow.

In addition, by contracting out logistics operations, companies may gain the adaptability to respond swiftly to demand spikes and other supply chain surprises. That might help companies keep up with customer demand, stay ahead of the competition, and minimize disruptions to their operations.

4. Improving Customer Service

Furthermore, companies may improve customer service and satisfaction by using an outside logistics provider. When businesses outsource their logistics, they can be assured that their packages will be delivered accurately and on time by professionals with the necessary experience and resources. Creating more robust bonds with customers, boosting customer loyalty, and enhancing brand image could all benefit from this.

Businesses can provide accurate delivery estimates to their customers if they use the services of an outsourced logistics company that offers real-time supply chain monitoring and analytics. Value-added services, such as order fulfillment and inventory management, may also be provided to enhance the overall customer experience. Our friends at homegrownmoving.com will tell you how much more satisfied the customers of firms that use logistics are. Never underestimate the importance of logistic services through outsourcing.

5. Access to Expertise and Technology

One of the main advantages of hiring a third party to handle logistics is having access to advanced tools and knowledge. Years of experience and a comprehensive understanding of the logistics industry allow outsourced logistics companies to offer their clients the best possible solutions. They are also ahead of the curve in logistics innovation, constantly spending money on cutting-edge tools and systems to further streamline their processes.

Businesses can access cutting-edge expertise and equipment by contracting with third-party logistics providers. Companies that use third-party logistics providers may gain access to state-of-the-art tools for managing their supply chains, transportation networks, and customer orders. That might help organizations automate processes, boost productivity, and make better decisions. All that combined is how you maximize ROI on logistics services through outsourcing.

6. Improved Visibility and Control

Better oversight and management are two other significant advantages of outsourcing logistics services. Businesses can benefit from outsourcing their logistics operations by gaining access to real-time data on their supply chain and logistics processes. They may also provide a suite of reporting and analytics tools to help organizations keep tabs on their operations and spot potential trouble spots.

Moreover, some companies find that outsourcing logistics services gives them more flexibility in running their operations. Supply chain management from start to finish is possible with the help of logistics outsourcing companies, which offer businesses a single point of contact for all of their logistical needs. For certain businesses, this might mean less work, less money spent, and a more streamlined supply chain.

7. Improved Risk Management

In addition to helping with risk management, outsourcing logistics services can save firms time and money. Risks associated with logistics and supply chain operations can be minimized by employing the services of an outsourced logistics provider. They may offer services including contract administration, carrier selection, and claims management to help firms better manage their operations and maximize ROI on logistics services through outsourcing.

Supply chain risks, such as natural disasters, political turmoil, and economic downturns, can be mitigated by using logistics outsourcing services. The customer can delegate these dangers to the logistics outsourcing firm, which will help the company continue operating smoothly and preserve its competitive edge.

8. Increased Focus on Core Competencies

Finally, companies may be able to devote more time and energy to developing their core competencies after outsourcing logistical services. By contracting out their logistics, businesses can free up internal resources for more strategic endeavors like product development, marketing, and sales. Increasing their competitiveness and sustainability may be helped by this. That is the importance of logistics in business. It will make your company more competitive and help it improve in the long run.

In addition, firms may be able to lighten their loads and gain some semblance of work-life balance by using logistics outsourcing services. By contracting with a reliable outside logistics provider, businesses may free up resources for more strategic endeavors and focus on core competencies.

Conclusion

In conclusion, outsourcing logistics services can benefit businesses in several ways. With the help of outsourcing, businesses can focus on their core competencies while leaving logistics management to trained professionals. If businesses follow the four steps outlined in this article, they can maximize ROI on logistics services through outsourcing and find sustained success.

This was a guest post by Kayla Hyde.

Author Bio

Meet Kayla Hyde. She has worked as a journalist for about a decade. Having dabbled in the industry for a long time, she is now an expert in streamlining operations and increasing productivity. Kayla offers insightful advice and hands-on assistance to businesses looking to outsource logistics support. She is an invaluable asset to businesses looking to improve their supply chain operations because of her wealth of knowledge and expertise in the logistics industry.

The post 8 Ways to Maximize ROI on Logistics Services Through Outsourcing appeared first on Universal Cargo.

Shipping regular goods is stressful enough for any business that imports or export. However, if you find yourself in a position where you need to ship hazardous materials, the situation gets an additional layer of complications. Not to mention that you have to choose whether you want to do it using air or ocean freight. So, which is better for shipping hazardous materials? Ocean freight or air freight? Let’s take a closer look at what the answer is!

The Cost of a Hazardous Material Shipment

The first concern you’re likely to have when shipping hazardous materials is its cost. More so if you are trying to reduce shipping costs on your imports or exports. However, ocean freight wins almost every time when it comes solely to price. Yes, you can incur additional expenses in the form of handling fees if you opt for ocean freight. However, let’s compare that to air freight costs that nominally come with a ‘flat’ fee. First, transportation costs of any sort of hazardous material by air freight are steep. Then, you also need to consider that the size and weight of packages transported by air can significantly contribute to the cost. The two factors together mean that you are looking at a substantially higher transportation cost unless your package is very small and only a one-off thing.

The Speed of Making Your Shipment

As can be expected, when it comes to the speed of shipping hazardous materials, air freight wins every time. Doubly so if you need to complete your shipment quickly on short notice. This is because of how flexible air freight services are. You have access to regular departures, with only a few hours of wait time at worst. You can have your shipment on a plane and heading to its location before you even begin to feel concerned about potential delays. Ocean freight, on the other hand, is somewhat slow and clunky. The first obstacles are less frequent departures. This means you might have difficulties finding someone to ship your goods on time. Then there’s the fact that ocean freight shipping schedules are always ‘estimates’ rather than the precise takeoff and landing predictions of air freight.

The Number of Goods You Can Ship at a Time

The following important factor to consider when shipping hazardous material is the volume you can ship off at once. Here, once again, the undisputed victor is ocean freight. The scale of shipment that ocean freight can provide is much greater than anything air freight can handle. You would need to do several loads using a plane to match up to what a single ship can carry. Of course, this is because of the limited size and scope of cargo planes. But, it is also partly because of what we discussed before: price. Things get exponentially more expensive the more cargo you ship using air freight. So, unless you want to pay far more than you have to and be limited by available space, your better bet would be to ship using ocean freight.

Restrictions You’ll Face Shipping Hazardous Materials

Of course, one of the most important factors when trying to ship hazardous materials is whether it’s possible in the first place. Well, if you are trying to do it using air freight, you’ll find that there are quite a few restrictions to follow. This is quite natural since hazardous materials obviously require cautious handling. A plane in flight can suffer from turbulence and a host of other problems, which significantly increase the risks. Ocean freight, on the other hand, allows the shipping of nearly all hazardous materials as long as regulations are followed. If you don’t want to deal with having to worry about your shipment being turned down, then it is definitely smarter to use ocean freight. Of course, the importance of proper logistics is once more evident if we take into account that specialized companies might offer air freight services even for ‘risky’ hazardous materials.

Preparing for Ocean Freight Shipment

You need to do several things to prepare for shipping hazardous materials by ocean freight, and the experts from professionalmover.ca recommend you follow them strictly. This is because sanctions imposed on poorly prepared shipments are hefty. First, you need to fill out a Material Safety Data Sheet. This lets you correctly classify your shipment. Then, you need certified personnel to check out your goods and help process them. Following that, you must properly label and package the cargo and fill out the required applications by the customs department at the origin.

Preparing for Air Freight Shipment

The preparations for shipping hazardous materials using air freight are rather exacting and are another reason why you might want the support of a qualified logistics business to do it. You need to observe the proper limits. Make suitable applications. Look into the classifications of your hazardous material shipment. Follow exact packing instructions and specifications. Provide the appropriate documentation, including a shipper’s declaration, air waybill, and adequate handling for the shipment. Depending on the air freight provider and your shipment’s destination, there might be more hoops for you to jump through, too.

The Final Conclusion on Shipping Hazardous Materials

As you can probably conclude on your own from our guide on ocean freight vs. air freight for shipping hazardous materials, the former wins out almost every time. The scope of what you can ship, the size of your shipments, and the cost of organizing a shipment all point to ocean freight as the better option. Of course, it is also true that ocean freight requires more preparation and forethought. After all, it is nearly impossible to put together a shipment on short notice and have it arrive at its destination on time if you rely on a ship to transport it. So, despite the other downsides, air freight could be the option you are looking for if you are in a hurry. That is as long as your shipment isn’t too big, of course. In that case, it might just be better to take things slow!

This was a guest post by David Burns.

Author bio:

David Burns is a shipping coordinator with several years of experience. He has dealt with various challenges, including hazardous material storage and shipping, and he enjoys sharing his experiences.

The post Ocean Freight vs. Air Freight for Shipping Hazardous Materials appeared first on Universal Cargo.

Most U.S. imports are transported via ocean freight or air freight. However, air freight primarily deals with shipments of perishable goods and other time-sensitive products. That, combined with almost double the shipping cost, means that the majority of imports arrive in the U.S. via ocean freight.

To get the best deal and have a smooth shipping process, it’s worth understanding common industry terminology used in freight shipping contracts. Two terms you’ll often run into are FOB or Free on Board and FCA or Free Carrier

Here’s what they mean.

FOB Obligations for Sellers

Sellers that agree to FOB terms on ocean freight shipping are subject to the following obligations:

• Origin freight charges
• Packaging
• Inland transportation in the cargo’s origin country
• Customs fees in the origin country
• Insurance is optional

FOB Obligations for Buyers

Buyers have very different obligations under FOB terms:

• Destination charges
• International freight
• Paying for the goods
• Customs fees in the destination country
• Inland transportation in the cargo’s destination country
• Paying additional duties and taxes
• Insurance is optional

Should You Use FOB When Importing Cargo Containers?

FOB is a commonly used agreement in international ocean freight shipping. You can see examples of the FOB incoterm in action and some alternatives on http://www.a1autotransport.com.

But it’s not the most efficient incoterm for containerized shipments, despite many businesses applying it to Chinese and other Asian imports.

The FOB incoterm shifts the risk from sellers to buyers. This happens as soon as the cargo is loaded on the ship. But containerized cargo can often sit in container terminals for days before it gets inspected and put on the shipping vessel.

For this reason, there could be a long period of inactivity and the cargo items could be stolen or mishandled while sitting in the container. A lot can happen during transport, loading, and even when sitting in an enclosed container awaiting further processing.

Moreover, containerized cargo remains enclosed until arrival and pickup. Identifying the time and circumstances of when the damage occurred, therefore, is challenging and makes it hard to identify the guilty or responsible party.

And under FOB incoterm obligations, sellers are liable for what happens before the cargo actually gets loaded onto the transport vessel. 

FCA Obligations for Sellers

The FCA incoterm offers a different way of assigning responsibilities and obligations to sellers and buyers. Here are the obligations for sellers:

• Packaging
• Inland transportation in the cargo’s origin country
• Customs fees in the origin country
• Insurance (Optional)
• Goods delivery and document handling

FCA Obligations for Buyers

Here are the buyer’s obligations when agreeing to an FCA freight shipment:

• Destination charges
• International freight
• Goods payment
• Destination country customs fees
• Securing inland transportation at the destination
• Paying additional duties and taxes
• Insurance (Optional)

Should You Use FCA When Importing in Cargo Containers

FCA agreements make the seller contractually obligated to deliver the goods to the buyer’s preferred carrier at a specific location. Usually, this means delivering to a carrier hub or port. Furthermore, sellers are responsible for making customs payments.

However, the risk is shifted from sellers to buyers after the cargo reaches the buyer’s designated location. This means there’s more accountability during the entire logistics process of moving cargo from point A to B, nationally and internationally.

FCA is a more suitable, or at least versatile, option when importing containerized cargo. 

But it’s not just a more beneficial agreement for buyers. Sure, buyers have a guarantee that the loading process is handled professionally and that someone is clearly responsible and liable for damages. It also saves them time and money securing other loading services, especially internationally. 

Yet sellers also benefit from the FCA incoterm. It clarifies each party’s involvement at every stage in the shipping process. Moreover, it basically makes shippers responsible for loading containerized cargo.

EXW Obligations for Sellers

EXW or Ex Works is one of the most straightforward choices for sellers, given the few obligations involved:

• Preparing documents and goods for delivery
• Packaging
• Wrapping

EXW Obligations for Buyers

Buyers have more obligations under an EXW incoterm than FOB and FCA agreements for containerized cargo:

• Destination charges
• International freight
• Goods payment
• Destination country customs fees
• Securing inland transportation at the destination
• Paying additional duties and taxes
• Inland transportation in the cargo’s origin country
• Customs fees in the origin country

Should You Use EXW When Importing Containers?

The EXW incoterm is preferred by exporters and sellers with minimal experience in international shipping. Their responsibilities and obligations are easy to meet, and most of the risk is shifted to the buyer.

But that doesn’t mean buyers get a bad deal. On the contrary, experienced buyers often appreciate the additional control they can exercise over the freight shipping process. They’re in charge of everything, from selecting shippers to negotiating rates.

In theory, a buyer with enough industry experience and connections could profit more from importing under the EXW incoterm. On the other hand, someone without importing and international maritime shipping knowledge may prefer an FCA or even FOB incoterm.

These alternatives shift the risk to and from the buyer and seller at different stages of the shipping process. Therefore, the two parties can complement each other and share more responsibilities as well as risks.

Choose Your Incoterm Carefully

Using the most beneficial incoterm for international containerized cargo shipping is essential for both buyers and sellers. Each incoterm sets clear contract terms and outlines the obligations, responsibilities, and liabilities for all parties involved.

Selecting an incoterm that fits your business is essential for maximizing profits, limiting risks, and getting peace of mind on complex logistics matters. Every business may have unique freight shipping requirements. Every seller might have their own preferences or limitations when it comes to being involved with international shipping.

Understanding the incoterms will help you negotiate better deals and ensure the safe and timely transport of your goods from foreign countries to domestic soil at a preferred destination. Furthermore, working with professional shippers can help you navigate international shipping logistics and make better business decisions.

This was a guest post by Joe Webster.

Author Bio

Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing.

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood.

The post Choosing Between FOB, FCA, and EXW Incoterms When Importing Cargo appeared first on Universal Cargo.

If your small businesses ship goods to customers, calculating your shipping costs is important for protecting your businesses’ profit margins. It is not always straightforward to determine the shipping costs involved with shipping goods and instead requires businesses to take proactive steps to figure them out by taking all of the various factors involved into account. Shipping costs include the cost of packaging and the shipping or postage rate. They might also include additional fees for add-ons, surcharges, and shipping insurance. Here are some things you can do to understand your shipping costs and potentially reduce them.

Optimize Your Shipping Contracts

A good way to reduce your shipping costs is to optimize the contracts you have for shipping your goods. One way to do this is by working with a freight broker. Freight brokers are required to obtain licenses from the Federal Motor Carrier Safety Administration (FMCSA) and post a freight broker bond of $75,000. When you work with a freight broker, their job is to connect your business with a carrier that charges the lowest rates and can timely deliver your goods to their destinations. Since freight brokers regularly work with a large number of carriers and shippers, working with a freight broker might provide your business with access to more options for shipping at a more affordable cost.

Evaluate the Cost of Your Packaging Materials

A good way to reduce your shipping costs is to evaluate the packaging materials you use. Look for cost-effective materials that provide the best value. Make sure the packaging materials you choose can protect your goods from damage while also saving your business money. Some products can be shipped in their boxes while others might need additional materials for added protection during shipping.

Understand Dimensional Weight Pricing

Your packaging costs involve more than simply measuring the size of your products and weighing them. You also need to consider dimensional weight pricing. Major carriers use this type of pricing, which involves the amount of space an item takes up in relation to its weight. You can figure out the dimensional weight by multiplying the package’s length times its width and times its height in inches to get the package’s cubic measurement. You then divide the cubic measurement by a number negotiated with the carrier. This result provides the item’s dimensional weight in pounds. Carriers use the dimensional weight or the package’s actual weight to calculate pricing based on which is larger.

Compare Available Shipping Methods

How much time it will take to deliver your goods is a factor used to calculate shipping costs. Some customers want to receive their items within a couple of days, which costs more. The time of delivery is also affected by the shipping zone. For example, shipping a package from New York to California will cost more than shipping a package within the same state because the package goes through more shipping zones when it is shipped cross-country. The shipping zones should also help you compare available shipping methods to choose the one that is the most cost-effective.

Consider the Cost of Insurance

Many small businesses fail to consider the cost of insurance when they calculate shipping prices. It is a good idea to carry insurance on your products during transit to protect your business if they are damaged or lost. While some customers might pay for insurance, it is a good idea for shippers to pay for it. Obtaining insurance from a third party might also be cheaper than buying insurance through the carrier.

Take Add-on Fees Into Account

You should also take into account any add-on fees, which are called accessorial charges, that might be involved. For example, if you need to obtain the recipient’s signature, deliver a package on the weekend, ship an oversized package, or pay added fees for additional freight handling, these types of services typically involve additional fees. These fees can be important for understanding the shipping charges your business might ultimately have to pay with different carriers. A freight broker can negotiate both the shipping rate and any add-on fees for you to try to secure the lowest rates.

Determine Whether to Offer Free Shipping

Businesses that offer free shipping foot the entire shipping costs rather than passing some or all of the expense to their customers. If your business is considering offering free shipping as an inducement to potential customers, think about factoring the shipping costs into the prices you charge for your products. If your customers order over a certain amount from you, offering free shipping can make sense so that you can enjoy a good profit margin after your business pays for shipping. In that case, it is important to avoid high-priced shipping options.

Understand the Costs Involved With International Shipping

If you have customers in other countries, calculating your international shipping costs is more complex than the process involved in calculating domestic shipping costs. For international shipments, you will need to consider the shipment’s landed cost. This is the total cost that includes the cost of transporting your shipment, duties, taxes, brokerage fees, and currency conversions. The tariffs or sales tax that might be charged will depend on the country of destination. Shipping goods internationally will require declarations and customs forms to be filled out, and if these forms are not filled out correctly, your items can be held up in ports.

Use Shipping Software

Shipping software can help small businesses understand their costs and determine the shipping prices to quote customers. There are multiple programs that can be useful for calculating shipping costs for per-package pricing. If you work with a freight broker, they can also help to calculate and negotiate shipping costs for your business and include them in the overall rates quoted by the various carriers.

Calculating shipping costs involves a lot more than many small businesses realize. By understanding the various factors that can affect your shipping costs, you can take steps to reduce them so that you can protect your company’s profit margins when shipping goods to customers.

This was a guest post by Robin Kix.

Author Bio

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state, and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation, and construction industries.

The post How Small Businesses Can Calculate and Reduce Shipping Costs appeared first on Universal Cargo.

A lot of people seem convinced that logistics are simply about moving goods from one place to another. That all they need in order to boast of having robust logistics of their own is a relatively decent truck fleet. However, businesses need the help of logistics companies because logistics are so much more than just this! In fact, logistics are part of pretty much every aspect of doing any business that deals with goods in any capacity. Even businesses that do not trade anything other than their skills, such as moving, cleaning, and construction companies, all need to worry about logistics, especially in the case of the latter, which often requires strong logistical support. As such, let’s take a closer look at the importance of logistics for businesses.

Keep Your Customer Happy

You have to understand that every shipping solution a business can come up with falls under logistics. And fast shipping is key to keeping your customers happy. As such, the importance of logistics for businesses trying to run an online or even a physical store that does shipping becomes immediately apparent. Does this mean that every business needs to have a truck fleet or delivery vans of their own? Of course not! Proper logistics solutions come down to hiring a third party just as often as they come down to organizing the running of your own business better. In cases like what we offered up as an example, it is better for an eCommerce business to rely on a logistics company than try to set up a whole delivery network on its own.

An Excellent Way to Prepare for Expansion

Part of the importance of logistics for businesses rests in the fact that it enhances warehousing. After all, both short and long-term storage of goods is an essential part of logistics. Improving the logistics of your business means having an exacting warehousing system drawn up and painstakingly tracking all your shipments and currently stored products. This will allow you to properly determine your current warehousing capacity, what amount of it is not being utilized, and how best to supplement it in expectation of future expansion. Naturally, the better running of your warehouses also helps with international shipping and even local shipping since the goods can be located and loaded up much faster and easier.

Prevent Losses and Boost Profits

While it would be a nightmare to set up from scratch, part of a sound logistics system is demand forecasting. Or, in other words, using software to track and predict market trends so you know which of your goods you need to restock and which can either be dropped entirely or just ordered in smaller amounts. Of course, if you do not want to set up everything yourself, you can look for a logistics partner who can handle the forecasting, shipping, and more. With their help, you would be able to quickly improve the profitability of your business at minimal personal cost.

More Efficient and Productive Running of Your Business

What we’ve already covered should be enough to showcase some of the ways logistics can help make your business more efficient and productive. However, an even more critical aspect is automation which can be achieved using quality logistics software. As the experts from bravo-moving.com like to point out, automating as much of your business as you can, allows you to streamline its operation and significantly increase its efficiency. And logistics software can let you do this for a lot of the daily running tasks an import or export company might have. And it eliminates a lot of human error while at it, too!

A Smoother Production Line

If your business produces some of its own stock before shipping it internationally, then better logistics again contribute to its betterment. After all, logistics can be used to deliver the required materials to you just as easily as it can ensure your own goods get where they need to go. Having a better and stronger link between your business and its suppliers can help reduce or even eliminate delays. Especially those caused by a lack of material in storage. And it will also help free up more of your warehouse space. You can more readily rely on on-the-date deliveries rather than have to store the materials you need in advance for fear of not getting them on time.

Reducing Business Costs

Another way the importance of logistics for businesses shows is through the many ways it makes it possible to save money. We already hinted at it, but the first way this happens is by letting businesses offload most of their logistics to specialized companies. Logistics companies can afford to expend time and effort to set up an extremely exacting logistics system that operates at peak efficiency. Something which would take far too much of your own resources to do, which means that you can benefit from the fruits of their efforts at a fraction of the cost. So long as you know how to pick the best freight rates, of course. The second way logistics can save you money is by making your business more efficient and profitable, as stated before. After all, if you’re spending money to bump up your profit margins, it’s a net positive.

A Final Look at the World of Logistics

As you can tell, the importance of logistics for businesses shines through in pretty much every aspect of their running. Do you want to have a well-organized warehouse? Logistics. Do you want to get your products to your buyers consistently and quickly? Logistics. Do you want to consistently get the quality materials you need in order to run your operations? Once again, the answer is unequivocally logistics. However, as you can also tell from our guide, not every business can afford to perfect its logistics setup. In fact, most can’t afford this at all. This is where logistics companies come in and patch a serious problem in the running of most businesses. Without the support of logistics companies, many businesses would have little to no chance of running normally. Let alone smoothly.

This was a guest post by Kenneth Seamus.

Author Bio

Kenneth Seamus is an expert in the field of warehousing and logistics who has worked as both a warehouse manager and a logistics team leader over the course of his career.

The post The Importance of Logistics for Businesses appeared first on Universal Cargo.

International shipping can be complicated and time-consuming. Knowing what paperwork you need, understanding relevant regulations, and finding reliable transportation are all essential elements of success. It’s not an easy job to do if you haven’t done this before. This article will discuss some recommendations provided by Jooble that will help you get started.

1. Research & Prepare the Necessary Documentation

Before you start shipping your goods abroad, it’s essential to have all the necessary documentation in order. Depending on where you are shipping to, there may be different regulations and paperwork requirements. It is a good idea to familiarize yourself at the very beginning.

2. Use the Right Packaging

Another key element of successful international shipping is using the right packaging. You’ll want to make sure your goods are properly packaged and labeled to avoid any damage or delays during transit.

3. Choose a Reliable Shipping Company

Choosing the right shipping company for international shipments is important since there are so many factors to consider. Look at the company’s reputation, experience in the industry, and what kind of services it offers (i.e., customs clearance, insurance coverage, tracking services).

4. Control Your Shipping Costs by Using a Parcel Consolidator

Be sure to choose a shipping method that will get your items to their destination safely and on time. Consider factors such as transit times, cost of delivery, insurance coverage, and tracking options when making your decision.

5. Get Insurance Coverage

Accidents can happen even during the most careful loading of shipments, so it’s crucial to get insurance coverage for your goods. This will save you time and money if something does go wrong. Make sure to research the different types of policies and find one that best meets your needs.

6. Account for Lead Time

Different countries may require longer lead times for international shipping. Be sure to account for this when planning deliveries and setting delivery expectations with customers.

7. Use a Tracking System

Using a tracking system can be incredibly helpful for international shipping. It will help you keep track of your shipments, know when they’ve been delivered, and make sure they don’t get lost in transit. This can be a great way to stay organized and make sure all your shipments arrive safely and on time.

8. Review your Shipping Costs

Make sure your shipping costs are in line with international markets. Your pricing should make sense in the global market and be competitive. It’s important to consider the different cost components that go into international shipping, such as tariffs and duties, taxes, broker fees, customs clearance fees, and more.

9. Never Misrepresent or Under Declare the Value of Your Items

It’s tempting to try to reduce your taxes or make shipping fees cheaper by not declaring the full value or proper types of cargo you’re shipping. But this is illegal, and it could lead to fines, jail time, or even having your business shut down completely.

10. Maintain a Positive Customer Experience

When shipping internationally, customers can experience delays due to customs or other unforeseen issues. Do your best to stay on top of any problems that arise and maintain a positive customer experience.

Conclusion

These are the essential key steps you need to take when preparing for international shipping. With the right preparation, you can ensure your goods arrive safely and on time.

This was a guest post by Daniel Williams.

Author Bio

Daniel Williams has been a researcher for Jooble since 2018. In addition to working at Jooble, he also provides coaching services for businesses of all sizes.

The post 10 Steps to Prepare Your Business for International Shipping appeared first on Universal Cargo.

On paper, choosing a freight carrier to cooperate with might seem almost simple. After all, so long as you prioritize something with lower rates, you can save a ton of money per shipment, right? Well, in fact, that is entirely wrong. In order to show why and what you need to look out for during the process, we have prepared a list of tips on picking the right freight rate for your business!

1. Take a Closer Look at the Carrier’s Mode of Operation

If you want to go about successfully picking the right freight rate for your business, you need information first. Namely, you need to know exactly how potential carriers handle their work. By getting acquainted with their business models, you can actually judge whether they will be a good fit for your own. For example, if you prefer more frequent but smaller shipments when exporting from the USA to Europe, you want to know that your freight carrier can actually follow your pace. If they just do infrequent, large shipments, then they are not the right solution for you.

2. Know Times When the Price Is Less Important

Let us directly address something we have already brought up: freight rates are not everything. If you focus too much on just trying to get the best rates, you may end up hiring a carrier with subpar performance. And, as the experts from armovingco.com point out, sometimes doing a job badly is far worse than not doing it at all. This means that you will definitely regret prioritizing price over everything else, including but not limited to reliability and actual freight capacities. Professionals engaged in the import and export of goods really cannot afford to make such beginner mistakes.

3. Check These to Know You Are Being Offered a Good Price

There’s data you need to objectively look at when picking the right freight rate for your business if you want to ensure the quoted price is actually justified. This data, generally, is:

• Fuel Costs
• Origin and Destination Zip Codes
• Lead Times
• Special Project Rates
• Weight and Dimensions of Shipments
• Transit Requirements
• Accessorial Charges

By accounting for all these, you can objectively approach the calculation of your ideal freight rates. Note, too, that some carriers offer other services that can be helpful, as well, such as better cargo tracking. These special services can also contribute to the freight rates you are paying and should not be looked down on.

4. Check References and Experience of the 3PL or Freight Forwarder

Of course, the experience of the third-party logistics company (3PL) or freight forwarder you are considering plays an important part in your negotiations over freight rates. You want to make sure that the 3PL or freight forwarder you end up picking to help you import or export your goods has years of experience backing up its claims of quality. This is the only way to avoid ending up disappointed by subpar performance! Do not hesitate to doubt these companies’ word, either. After all, even if they provide you with detailed data on some of their previous shipments, it is possible to sew your opinion of them by providing only flattering data. This is why what you want to do is request references to current or past clients. Note that past clients often have as much quality info to offer as the current ones. Such as why they gave up on working with the particular 3PL or freight forwarder to begin with.

5. Determine If You Can Work Closely Together?

Picking the right freight rate for your business should not be your only goal. In order to properly do business in the future, you may need your 3PL or freight forwarder to show some special consideration to you. This may include increasing the volume of goods it is helping you transport if you plan to expand your business. And that’s not all, either. A close level of cooperation between a 3PL or freight forwarder and an importing or exporting business ensures that everything can work smoothly. A lack of proper cooperation, on the other hand, can result in problems with schedules, shipment errors, and more. When looking for professionals at freight forwarding or 3PLs to work with, it is evident that you don’t want to work with them just once or twice and then be forced to switch to someone else. It would waste a ton of your time and even resources, after all.

6. Remember Things are Absolutely Never Set in Stone

Finally, even though we just said that you want to prioritize long-term cooperation after picking the right freight rate for your business, remember that things are never set in stone. Your business partners can disappoint you, especially if they end up damaging your shipment or suddenly try to increase freight rates and fees on you. In such scenarios, it may be best to cut off your cooperative relationship with them. There are great 3PLs and freight forwarders you can find to work with as long as you put in some effort! But hobbling your own business through poor importing or exporting for their sake would be foolish. As such, make it clear from the start that your cooperation is based on mutual benefit. And that if problems do start appearing, you are willing to look elsewhere. Just don’t be rude about it since that would certainly mean starting off on the wrong foot.

Final Comments

With our tips on picking the right freight rate for your business, you should be able to find a satisfying freight forwarder or 3PL to cooperate with. Remember that your choice needs to be made for reasons other than a good price! If you try to save money carelessly when negotiating freight rates, you’ll likely end up with a business partner you cannot rely on at all. This would seriously hurt your business prospects in the future and can even result in significant monetary losses due to lost or damaged shipments. By picking a slightly more expensive freight forwarder or 3PL that is good at its job, you make an investment in the future of your business. Together, you will be able to grow and turn considerable profits!

This was a guest post by James Harrow.

Author Bio

James Harrow is an experienced financial expert who has worked as a manager in an export company for decades. He draws on this experience when writing his blog posts to assist others with running their own businesses.

The post 6 Tips on Picking the Right Freight Rate for Your Business appeared first on Universal Cargo.

Expanding globally is a dream that many entrepreneurs hope to see come true. Thankfully, technology and increased connectedness have made it easy to take businesses across borders. However, before you jump into foreign territories, keep in mind that expanding globally comes with both opportunities and risks. Understanding what to expect early on can help you weigh your options and make informed decisions. Let’s look at different potential opportunities and risks that expanding globally exposes to your business.

International shipping

Exporting goods internationally can be a great way to expand your business and break into new markets. It opens up the potential for reaching a much larger customer base than you would otherwise have access to. International shipping allows businesses to tap into new potential customers, helping them gain an edge over the competition by expanding their reach outside of local borders. With increased visibility, businesses can achieve higher levels of success in previously unexplored regions and grow their customer base on a global scale.

Understanding the Challenges of Going Global

Exporting goods internationally can be a tricky business, especially when it comes to navigating different countries’ customs regulations. Companies must take into account items like taxes, duties, and other fees associated with international shipping that can add to the cost of the goods being shipped. Understanding national laws and regulations is key to successful international shipping operations so that goods arrive at their destination on time and without hassle.

Exporting goods internationally has many complexities and it’s important to stay informed about international trade agreements and tariffs that may affect your shipments. Being aware of these laws can help you to avoid any issues that may arise when shipping your goods overseas, allowing for smooth transitions and successful orders.

Identifying Strategies for Successful Global Expansion

Exporting goods requires an efficient, cost-effective international shipping process. Companies need to think about the package size and weight, the mode of transportation (air or sea), the duration of shipment, paperwork handling, customs compliance, and tariff regulations. All these factors will ultimately impact the cost involved in shipping goods internationally. To ensure their international shipping processes are successful, companies must plan out all necessary steps and have an experienced team ready to handle them.

How to Choose the Best Logistical Solutions for Your Business

When it comes to international shipping, it’s important to understand the different services available and which ones will best meet your needs. There are many options including air freight, surface freight, courier services and letter-post services. Depending on the size and urgency of the shipment you require, each of these services can be tailored to suit your needs. For example, if you require express delivery a courier service may be most suitable while more cost effective solutions such as surface mail may be best suited for larger items. However, if you’re setting up operations in another country, exporting container loads of goods is likely needed and most cost-efficient. Ultimately understanding the advantages and disadvantages of each service is key when selecting an international shipping option that meets your requirements.

International shipping can be an involved and complex process, so it’s important to do your research beforehand. Before you choose an international shipping provider, you should make sure that the company is aware of all relevant regulations, taxes, and fees associated with the shipment. Not being compliant could cause countless headaches further down the line and potentially cost you time and money. Be sure to ask questions and make sure you have a full understanding of what you are getting into before beginning any international shipping project.

Next, you should consider partnering with an experienced and reliable international shipping provider. This can help ensure that all of your international shipments are completed quickly and cost-effectively. With the right logistics partner, you can make sure that all documentation is correctly completed for each shipment and be confident that your goods will reach their intended destinations in a timely manner. Finding a quality international shipping partner can be key to success when engaging in any type of global distribution.

Key opportunities

When expanding globally, your hope is to grow your business to new levels. If you have a solid global expansion strategy, you position your business to benefit from several opportunities. These include:

1.  Potential to increase revenue and profits

Expanding to other markets allows you access to a larger audience. This gives you an opportunity to grow your customer base exponentially. If your products are well received in the new markets, it only translates to increased revenue and profits. However, you have a task to do thorough market research to determine how to align your product with the market needs in the target countries.

2.  New investment opportunities

Exploring new markets can expose you to investment opportunities that you could otherwise have not identified if you continued operating locally. For instance, market research in new markets can reveal gaps in the markets that you can jump in and fill before everyone else.

3.  Larger talent pool

Taking your business global opens up a larger talent pool that you can leverage for business growth. You have the opportunity to attract and hire individuals with diverse skills and knowledge that can benefit your organization. For instance, your chances of finding hard-to-fill skills to fill the skill gaps in your organizations are heightened with exposure to a wider talent pool. And, this gives you a leg up ahead of your competition in your domestic market.

4.  Increased brand recognition

International presence comes with international brand recognition. If your strategy is executed successfully, this can mean an improved brand reputation across the globe. This makes it easier to attract high caliber or potential investors, business partners, and employees.

5.  Market diversification

Market dynamics are always shifting rapidly both positively and negatively. Imagine what would happen if your domestic market experienced an economic downtime due to unforeseen circumstances. You will be at an advantage if you have operations in other markets across the world. And, it will be easier to weather the storm and continue growing.

Key risks

Expanding globally can be exciting, but also poses new risks. It is important to identify these risks and understand their probability of occurring and the potential impact. This way, you can create mitigation strategies to ensure that you expand successfully. Here are key risks to keep in mind.

1.  Compliance risk

Each jurisdiction has its own law regarding business operation, incorporating companies, employees, taxation, and more. Expanding globally exposes you to foreign laws and risk of falling into legal battles. It is important to work with local experts to help you navigate the legal landscapes in different countries. For instance, company registration in Singapore is so easy with an expert who can ensure a smooth process and compliance.

2.  Internal readiness

Expanding internationally brings in unique challenges such as new cultures, different time zones, language barriers, and distance. You may be doing so well domestically, but if you are not prepared in these areas, there is a risk of failure. Focusing on these areas could expose scalability weaknesses that need addressing before moving on.

3.  Local competition

When moving to new markets, expect to find customers who trust local brands that are already established in the market. In addition, expect to compete with local businesses with a greater understanding of the market. These two would make it daunting to gain traction in the market. Before taking a step, it is important to determine if your product has a chance in the target markets.

4.  Geopolitical and macroeconomic risk

While global expansion offers an opportunity for market diversification, it also exposes you to market downsides, sometimes without warning. Running an international business exposes you to risks such as war, political instability, extreme weather, trade disputes, and extreme currency shifts among others.

Conclusion

There are several opportunities that come with expanding globally such as increased revenue, new investment opportunities, a larger talent pool, and more. Expanding your business globally provides access to new markets, new insights, and the opportunity to grow and expand in ways that wouldn’t be possible otherwise. With careful planning and due diligence, businesses of all sizes can take advantage of global expansion opportunities to reach new heights. However, risks such as compliance, existing competition, internal readiness, and geopolitical risks also exist. The secret is to create a surefire expansion strategy that can ensure that you take advantage of the opportunities and keep risks at an acceptable minimum.

This was a guest post by Alanna Melton.

Author Bio

Alanna Melton has been a business consultant for over 5 five years now. She is dedicated to her job and she likes helping businesses overcome their problems. In spare time she likes to write content, and being creative in what she writes. She also loves spending time with her family and reading books.

The post <strong>Key Opportunities and Risks in Expanding a Business Globally</strong> appeared first on Universal Cargo.

Importing from Southeast Asia may have new advantages for American businesses. Consider how sourcing goods from countries like Thailand, Malaysia and Vietnam can benefit you.

Thailand

Companies in the renewable energy sector benefit from importing from Thailand to the USA by air. In June 2022, President Biden paused tariffs on solar panels imported from Southeast Asia. Sourcing solar panels from Thailand and nations like Cambodia, Malaysia and Vietnam will now be more affordable without the extra costs.

Malaysia

Malaysia is the 14th-largest exporter to the U.S., measured by product volume. Common exports include machinery, rubber, optical and medical instruments, furniture, bedding, cocoa, industrial alcohols, feeds and grain, cereals, pasta and baked goods.

A poultry ban effective in early June 2022 sought to address a shortage and briefly halted importing related products from Malaysia to the United States. The government has eased this ban since then.

Vietnam

Vietnam is the sixth-largest supplier for the U.S. and typically exports machinery, furniture, bedding, knit clothing, footwear, nuts, unroasted coffee, dog and cat food, sweeteners and spices.

Imports of shoes and footwear from Vietnam to the USA increased in June 2022, despite worries that inflation would reduce consumer spending in the USA. Imports of Vietnamese footwear increased by 5.6% according to year-to-date data in April 2022. 

The U.S. Department of Commerce launched an investigation into whether Vietnam violated tax rules by including parts made in China in wooden cabinets destined for sale in the U.S. market. This ongoing investigation’s findings may impact imports from Vietnam to the USA by air, specifically for companies purchasing wood products.

How Universal Cargo Can Help

Is your business eager to work with manufacturers in Thailand, Malaysia, Vietnam and other parts of Southeast Asia? If you want to import quality products for your business, you need reliable air freight to handle your largest and most time-sensitive shipments. Universal Cargo has full-service solutions for all your needs, over 30 years of experience and representation in all major ports to serve you better. Request a quote for Universal Cargo air freight logistics. 

The post Imports From Southeast Asia appeared first on Universal Cargo.

The United Kingdom’s departure from the European Union in 2020 created heightened interest in new markets for EU member countries and the U.K. as these nations tried to find new sources for imports they needed. The instability in Europe following Russia’s invasion of Ukraine in 2022 has also added instability to the region and developed new demand for products. For businesses in the United States, exporting goods to Europe presents many opportunities.

Exporting From the U.S. to Europe

If you’re exporting from the U.S. to Germany, the U.K., Italy, France or another nation, exports by air offer several advantages. With instability at some European ports in the Baltic in 2022, air offers a secure and timely freight shipping method, especially for perishable and time-sensitive goods. Right now, some of the most in-demand products include:

• Exporting from the U.S. to Germany: Major exports from the U.S. to Germany include aircraft and aircraft parts, cars and other vehicles, pharmaceuticals, medical and optical equipment and instruments and industrial and electrical machinery.
• Exporting from the U.S. to the U.K.: Top exports from the U.S. to the U.K. in recent years have included gold and other precious metals, precious stones, mineral fuels, machinery, aircraft, wine and beer, prepared food, soybeans, nuts and vegetables. 
• Exporting from the U.S. to Italy: In recent years, Italy has imported chemicals, oil and gas, transportation equipment and electronics from the USA. 
• Exporting from the U.S. to France: To France, the U.S. exports art and antiques, transportation equipment, machinery, chemicals, mechanical appliances, chemicals, plastics and leather products, among other commodities.

Why Choose Universal Cargo?

If you’re a business in need of reliable air freight export from the USA to Europe, you can trust our team. Universal Cargo has more than 30 years of experience and a presence in every major port. We are a full-service solution, meaning we can handle logistics while you focus on growing your business, and our professional team is always here to help. If your company is exporting to Europe, get a quote for air freight services from Universal Cargo today. 

The post Exports to Europe From the United States appeared first on Universal Cargo.

Logistics is simply about moving goods from one location to another in the right amount of time. However, it is one of the most complex and critical parts of business operations. It becomes even more challenging when it comes to international shipping. Complexities of moving goods across borders and oceans add on top of the generally complex nature of supply chains. The ability to track goods on the move makes it simpler and provides real-time actionable insights.

The Need for Tracking

Imagine that you are a cosmetics producer with a production plant in the United States. You import oleochemicals from India to manufacture your products. It is a critical raw material you need for production and is transported by ships. On route, the Suez canal gets blocked and the shipment will be delayed. Your production will halt if you cannot get the oleochemicals in time. 

If you were tracking the movement of cargo, you could order oleochemicals from a backup producer in Thailand. This movement does not require passage through the Suez canal, and you will be able to receive the goods you need and not need to halt production. With tracking, you can also plan contingencies for other eventualities like unfavorable weather conditions, geopolitical conflicts, etc.

Tracking cargo in international shipping helps you in effective supply chain management. It also helps to manage contingencies with minimal impact on your business operations. For eCommerce companies, tracking gives your customers the ability to see the shipping status of their package and it provides a superior customer experience for consumers. Depending on your situation, there could be other benefits of tracking unique to your industry. But the ability to track international shipping is always better than not having the ability to track.

Tracking International Shipment

To effectively track international shipments, you need to first assess your requirement. Your use cases may not require real-time data. Regular updates at fixed intervals might be sufficient. These variables will determine the best way to track your shipments. With your specific set of requirements, you will be able to design the appropriate tracking methodology and improve on it. You can also choose to outsource logistics to 3PL operators that provide tracking for international shipments. Despite the methodology you choose, you need network connectivity and software to power international tracking.

Network Connectivity

The major challenge for tracking international shipments is network connectivity. Internet connectivity for international shipments is sparse. Satellite communication has limited bandwidth and is expensive. Even for intracontinental shipping, you will have to juggle connectivity from multiple telecom operators in different countries. For real-time communication, you will need to employ these expensive methods.

Another way to go about updating tracking information is at waypoints. You can utilize internet connectivity in well-networked warehouses and distribution centers to send tracking information. This diminishes the need for expensive network connectivity required for real-time tracking. You will be able to know a shipment is delayed when it does not reach a waypoint within the expected timeframe.

Software

Tracking data in itself is not sufficient for managing logistics operations. You need the information at the right place and at the right time to take the necessary actions. Software tools are required to make this possible. Most prominent supply chain software has shipment tracking as a main feature. 

The tracking information isn’t only relevant to the supply chain function of your business. Finance, sales, and other relevant departments also require tracking information. The software you use for tracking should integrate well with other suites like enterprise resource planning (ERP), customer relationship management (CRM), warehouse management system (WMS), etc. This ensures that the entire organization has visibility on tracking information. It also avoids any bottlenecks in decision-making related to international shipping.

What’s Next…

Modern businesses rely on easily accessible information to manage their daily operations. You can get tracking information for international shipments with reliable network connectivity and efficient software. But for a large business with a huge volume of international shipments, employees can’t synthesize all the information. Big data analytics or AI can be instrumental in processing large amounts of data and deriving actionable insights from it. It can also be used to automate various processes in international logistics operations. Once you have a good tracking system in place, you need to explore the possibilities of AI to make the process more efficient and profitable.

This was a guest post by Patrick Chown.

Author Bio:

Patrick Chown is the owner and president of network installation company, The Network Installers. The Network Installers specializes in network cabling installation, structured cabling, voice and data, audio/visual, commercial WiFi, and fiber optic installation for industrial and commercial facilities.

The post Tracking Cargo on the Move: How to Go About It? appeared first on Universal Cargo.

Logistics has always been a fun and exciting field for us organization nerds. There’s nothing quite like the satisfaction of organizing a project from beginning to end. Especially if you have subtle OCD as a personality trait, we fully understand why you’d want to take all the logistics projects on your plate. However, having reliable and experienced help from a third party (aka a professional logistics company like a freight forwarder with value added services) can be a game changer both in organizational parts and narrow-field parts of your work. If you still have doubts about it, let us take you on a journey through the essential benefits of outsourced logistics management.

Risk Reduction as an Ultimate Goal

There is no good and successful business without risk. However, in a world where numbers are everything, it’s better to decrease the risk as much as possible and pull the math on your side. A rapid rate of development has a substantial impact on a variety of fields and activities, including:

• goods sourcing
• retail
• technology
• law
• and others

For instance, a business that makes significant investments in information technology for logistics exposes itself to the possibility that the technology could become out of date in the very near future. However, it is conceivable for a third-party logistics (3PL) provider or service provider to distribute some of the risks associated with this investment among all of its customers.

Enhanced Support and Growth in Constantly Changing Markets

Not only does outsourcing create chances for growing emerging markets, but it also has the ability to improve customer service by enabling businesses to direct their attention to the activities that are most vital to their operations. With the enhanced flexibility that comes from using a 3PL, a business that is interested in expanding into new geographic regions will have a better chance of succeeding in its endeavor.

When bringing new items to a new region, there is no assurance that they will be successful in selling, and early profits may be modest. The third-party logistics provider makes it possible for the firm to expand into developing regions at a lower cost and without the need to introduce its own assets and logistics network. There are certain strategies to improve your supply chain of which you might not be aware. That’s why 3PL is an ally you want on your side in the constantly changing market.

A Decrease in Both the Initial Investment and Ongoing Expenses

When investing cash in things like cars, warehouse space, staff, and technology, it is possible to make costly mistakes. Putting your trust in the knowledge and experience of third-party logistics providers (3PLs) may help you avoid this problem and provide your business the option to extend its international logistics channels without incurring any extra expenses. For example, the logistics company can arrange LCL shipping for your small business, and you can save up a lot in the process.

Transportation and Other Daily Costs Can Decrease

The most important benefit is the elimination of expenses related to transport operations, followed by a decrease in employee numbers and the expenditures associated with them. Outsourcing logistics services may also lower the daily operating costs of a business. By far, the most major benefit that can be gained by working with a 3PL is a decrease in operational expenses, which may also include a reduction in the number of employees.

When You Need to Change Your Residence…

Should the need spring up, through the review of transferring supply and demand marks, external provider logistics can help roll out the vital radical departure from depots that are no longer serving their purpose. You can accomplish this shift without the cost of the business buying extra distribution centers.

Upon further investigation, it’s possible that some depots need to be shut down while others need to be opened. As professionals at Centennial Moving suggest, outsourcing logistics may help lessen the likelihood of incurring additional expenditures when essential changes are made. Also, a 3PL can help lessen the possibility of causing interruption to exist operations and levels of customer service.

You’ll Get an Extra Pair of Experienced Hands and a Lot of Talent for the Job

In addition, third-party logistics providers may offer the extra experienced people necessary to initiate the supply chain operations needed for your company’s expansion into foreign markets. In-house managers may have never worked outside of national supplier chains. And that’s okay. But certain people surely know how to do some more high-field operations.

Also, as the use of tools and technology increases, particularly within the framework of operational logistics, there is an increasing need for managers with a more advanced skill set. So, it’s pretty reasonable to contact reliable logistics professionals and let them show their magic to you and your precious business.

You’re Free to Focus on What Really Matters to Your Company

Although being your own organizational manager and logistics provider can be quite exhausting and time-consuming. In a way, logistics can take more of your time than the special line of work you’re in. Time is money. For a successful business, you need to put your resources and energy to work wisely. If you outsource the administration of your logistics operations, you can put all of your energy towards expanding your company’s core competencies and creating new products and services.

Wouldn’t it be nice to hand over the time and energy-consuming work to someone else and focus on the company goals?

Use Outsourced Logistics Management to Your Advantage

Of course, we understand how difficult it is to trust someone else with your life’s work. However, once you fully understand the benefits of outsourced logistics management, the
decision becomes less complicated. A good team is what makes good business. So, find a 3PL company you can trust and take advantage of all the services. We would love to be on your team and cheer you through your rough and prosperous days, making your life easier with our (subtly OCD) drive to organize and help.

This was a guest post by Mark Harper.

Author Bio

Mark Harper is a blogger and organizational sciences enthusiast. Planning and organizing events and projects have been his way of putting his OCD to good use for the world. He enjoys working with logistics companies and writes about them a lot in his blogs.

The post Essential Benefits of Outsourced Logistics appeared first on Universal Cargo.

When businesses deal with shipping, they are often faced with various options. From multiple types of transport to different supply chains, shipping can be a hassle to plan and tackle. Therefore, it shouldn’t be surprising that most businesses opt for the simplest option and forgo any serious research. While this is the easier option, it is not necessarily the most reliable or cost-effective one. This article will cover the benefits of LCL shipping and why it should be a go-to choice for small businesses.

What Is LCL Shipping?

LCL stands for Less than Container Load. As the name suggests, this is the type of shipping where your cargo doesn’t take up a whole container. Companies that offer LCL shipping will group orders that head to the same destination together and ship them as such. This is why LCL shipping is also referred to as groupage.

Benefits of LCL Shipping for Small Businesses

So, instead of using an entire container solely for your cargo, the shipping company will group it together with other shipments. Does this single change bring any notable benefit to you as a client? Well, you’d be surprised at the effect that groupage has on efficiency, cost-effectiveness, and flexibility. The mere fact that you don’t have to use an entire container means that shipping your goods can be far easier to schedule and ship.

Easier Ocean Freight

If you are a large company, LCL might not be the best solution. If you need to transport large shipments on a regular basis, LCL will likely be the subpar option. But, small businesses tend to benefit much more from LCL, especially when it comes to ocean freight. The main worry for small businesses is that LCL shipping will be infrequent. After all, you will have to wait until the containers fill up before they get shipped. But, in most cases, you will have other businesses in your vicinity that require shipping. Therefore, with proper planning, shipping frequency isn’t something you should worry about. This is also why experts from fairfaxtransfer.com recommend LCL shipping. Through it, overseas moving can be far cheaper and easier to handle.

Better Overall Efficiency

The great thing about LCL is that it allows businesses to place shipping orders in accordance with customer demand. With standard shipping, you would have to wait until the container fills up so that your shipping will be cost-effective. But, with LCL, your order is likely to be a part of a pre-made shipment schedule. Therefore, it will arrive far more quickly and not have to wait in some warehouse until the container is ready. As you can imagine, customers find this far more satisfactory as their shipments arrive far more quickly.

What LCL does, in effect, is give you the ability to accept on-demand delivery. If you have some extra storage space, you can make reserves and make your delivery near instant.

Easier Storage

The great thing about small shipments is that they take up less storage space. If you were to focus on standard shipping, you would have to have the storage space for at least two containers to keep your business operational. This would also mean that your items spend a large amount of time in warehouses (be it yours or the shipping company’s). With LCL, on the other hand, you can afford to have much smaller storage space. The fact that items reach customers faster means that you don’t have to store them for such long periods.

Market Testing

Easier marketing testing is one of the benefits of LCL shipping that people don’t often consider. If you were to test out a new product or try different alleys of online engagement, you would need to order a certain amount of it to promote to customers. With standard shipping, this amount would likely have to be large, as you will have to fill a container. But, with LCL, you need not be limited with container size. Instead, you can see what amount would be profitable to test and make your analysis. As such, LCL allows you to have cheaper testing, which will encourage you to take more risks with less potential loss.

Increased Flexibility

Because most small businesses use LCL, it gives tremendous flexibility. If your shipping needs change, or you need to postpone specific shipments, you can do so with relative ease. Meanwhile, if you use individual containers, such changes would present a much bigger problem for shipping companies. So much so that they would likely charge you extra for any changes to the original shipping schedule.

Cost-Effectiveness

If what we’ve said so far wasn’t enough, we should also point out that LCL usually turns out to be the more cost-effective option for businesses. Yes, if you were to compare the cost of LCL vs FCL (full container shipping), LCL will cost more per unit of freight. But, once you factor in all the benefits we’ve outlined, you’ll soon realize why LCL is the more cost-effective option.

Easier Scheduling

Now, you might be worried that you’ll have trouble scheduling your LCL shipments. After all, you will have to wait for other companies to pitch in to fill out an order. But, in reality, scheduling is hardly a problem. Modern shipping companies have various tools to inform you of the upcoming schedules and changes in LCL shipping. Therefore, with proper communication, you’ll be able to plan your shipments with relative ease.

Final Thoughts

There is a certain point where the benefits of LCL shipping are no longer alluring to businesses. Once your business grows enough, and your shipping needs increase, transferring to FCL will be both more profitable and effective. But, until that day comes, don’t shy away from LCL. In fact, we would strongly gear you towards it as a cheaper, flexible, and easily manageable option.

This was a guest post by Tony Diaz.

Author Bio

Over the past 15 years of journalism, Tony Diaz learned a fair bit about shipping and supply chain management. Now, he is more than happy to share his knowledge with readers who are ready to learn.

The post Benefits of LCL Shipping for Your Small Business appeared first on Universal Cargo.

Peak season is here, and supply chain management processes for it are already in place. But as every logistics professional has learned, an entire chain can change in an instant. To protect yourself and your blood pressure, it’s time to put a logistics strategy in place for what goes right or wrong during peak.

Every Peak Strategy: It Depends

With the uncertainty created by the past few years, your logistics strategies will all be variable and require flexibility in operations. Plan, stage, prepare to execute, and then let go of a “must-have” outcome so that you can adapt as necessary. 

Here are scenarios that can help you tailor a logistics strategy to your reality, customers, and what’s possible. And remember, at this point, your supply chain assessment will focus heavily on the downstream aspect of getting goods to your customers, whether they’re businesses or end consumers.

When Everything Is Running (Mostly) Smoothly

Peak season may start out running well, and your supply chain is moving without issue. If that’s the case, your logistics strategy is about staying the course while reducing costs. This could mean reviewing carrier rate increases that target your products, especially if you ship heavy or large items. Or, you could increase the time operations managers have to track warehouse and carrier activities. Watching for trends can help you spot issues early and have time to avoid the worst of them. 

Benchmark your systems now so that you can assess performance. Benchmarks also give you guardrails to see when an issue might occur, so there’s more time to adapt to meet peak demands. Something as simple as reslotting goods in your warehouse may help you avoid pick-and-pack times that lead to delays. It’s not a time to try to reinvent the wheel but an opportunity to look for small gains that minimize disruption to your supply chain.

There’s one caveat here. If you’re still running a lean inventory strategy, consider ramping up to avoid delays. Improve your cushion to minimize disruptions when demand shifts or carriers experience issues.

If Containers Are Slow or Stuck

Due to adverse weather, pandemic outbreaks, and labor disputes, there’s a significant chance of another port slowdown in major manufacturing hubs. When these occur, containers are often stuck for a short time and then delayed on the ocean for much longer. That puts a big strain on peak planning and restocking for those last-minute holiday sales.

If your goods are stuck at the beginning of their transit, it’s time to shift marketing, sales, and other messaging to focus on what’s in stock. Yes, you might be able to use air freight to move some items quickly, but that significantly reduces per-unit margins — especially if you’ve already marked goods down for a year-end sale.

Once Q4 starts, any delay can put a container out of reach for the holidays. Here is where you’ll need robust inventory data across all warehouse and fulfillment locations to leverage what you have on hand.

Delays Hit the Last Mile

It’s time to start talking to your carriers or 3PL partner consistently. Provide updates on expected volume. See where you can negotiate capacity, just in case. And discuss rates or other concerns you may have at this point. There’s not a lot of deal-making that’ll drastically cut your costs. Still, you may realize opportunities to shift volume among carriers to maintain capacity while optimizing for spending and delivery times.

When you’ve handed parcels off to last-mile carriers, there’s not much you can do beyond monitor and adjust for the next order. Is there an affordable alternative if one carrier is starting to miss delivery projections or leading to higher complaints? If expedited services are delayed and reach customers at the same time as standard ground shipments, is paying more upfront worth it if you then spend time trying to recoup that cost?

Don’t neglect regional carriers if you see a flood of orders for any given territory. Trucking companies have been merging and condensing in recent months, so some regional providers may have a larger direct fleet than during peak 2021. There’s potential for you to adjust quickly and reduce either cost or the chance for delays.

The Surge Hits

That communication you’re doing to hedge bets against carrier troubles can also help you when an unexpected surge in orders arrives. There’s still time for a breakaway product of peak season. That may include you or lift some related sales. Someone out there is going to hit a demand curve they never expected — and may or may not be able to handle it successfully.

As soon as you start to experience any dramatic increase in orders, operations and customer success teams should start talking with your carrier and peak fulfillment partners. Yes, your 3PL will be able to see that there’s a spike as orders start hitting its system. But the best partners provide an early heads up when website demand increases significantly, which translates into sales.

Your strategy here also includes communicating with customers. Let them know about the demand you’re facing and that it may lead to potential delays. Pull added costs or expedited shipping options from your website. Look at order management tools to automate notifications about deliveries. Over-communicate and thank people regularly for shaping your success.

Don’t Peak Too Early

Let’s end with an important note about peak season: it doesn’t end with 2022. The true peak season can push well into February because you’ve got returns, replacements, and refunds that hit in January. At the start of 2022, for example, UPS noted that it was close to reaching 60 million returns in its network. Roughly 25% of all Americans planned to make a return during the last holiday season.

This means your peak planning should consider reverse logistics based on volume and activities listed above. If you got stuck with inbound freight delays and prioritized older goods, you may want to make all sales final or simply process refunds without asking for goods to be returned. 

If you need those items back, prep your warehouse or 3PL teams now with what they need to manage returns. This includes QA guidelines, additional packaging, SKU data if you track “used” items separately, and more. Provide everything they need to plan for a large volume of returns.

Carriers, 3PLs, and eCommerce businesses are all going to face high levels of returns. Plan now so your sales, marketing, and operations units can all put strategies into place to either minimize returns or streamline workflows to reduce the man-hours required for processing.

This was a guest post by Jake Rheude.

Author Bio

Jake Rheude is the Vice President of Marketing for Red Stag Fulfillment, an eCommerce fulfillment warehouse that was born out of eCommerce. He has years of experience in eCommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others. 

The post How To Adjust Your Supply Chain With A Peak Logistics Strategy appeared first on Universal Cargo.

It’s important to consider these factors when determining where ocean shipping currently stands. This article will mainly focus on the changes after COVID-19 instead of the war issues, but both are relevant to current ocean shipping trends.

Post-COVID Logistics

According to some shipping and logistics companies, ocean shipping seems to be looking up. The chairman of Yang Ming Marine Transport Corp., one of the largest shipping companies in the world, believes congestion is decreasing and ocean shipping will likely become smoother as 2022 progresses.

While some countries, including China, are reinstating lockdowns, it’s assumed these events will only have minor impacts on ocean shipping.

Ports After COVID

While the global economy is starting to return to normal, not everything will be smooth sailing in the post-COVID world. There might still be issues with congestion and delays for some time. However, ocean shipping operations are expected to pick up throughout the year.

Critical ports in China are set to remain open during the country’s latest lockdowns. Considering many ports worldwide are still experiencing backlogs due to the numerous issues COVID caused, a reduction in factory volumes could allow ships in China’s ports to get back on track.

You also have to consider the demand side of the situation. If demand decreases, ocean shipping might see some logistics relief. However, those odds are difficult to calculate with variables such as the Russia-Ukraine war and COVID-19 shutdowns in Shanghai. Some experts are warning of the potential for another surge in issues as summer approaches, particularly for ports on the East Coast of the US.

Fluctuating Outlooks on Post-COVID Ocean Shipping

Ocean shippers have faced various struggles throughout the pandemic. While ports are beginning to improve their operations, there are still lasting effects from COVID.

Ocean shipping will likely be a continuously changing landscape throughout 2022 and into 2023, especially since countries around the globe all have their own responses to the pandemic. The global economic challenges due to Russia’s war against Ukraine also contribute to the fluctuation.

Our team at Universal Cargo is here to help you keep an eye on ocean shipping and how it will recover post-COVID. Read more of our blogs to stay in the know.

The post Post-COVID Outlook on Ocean Shipping appeared first on Universal Cargo.

It is the dream of every business involved in logistics to have a robust and failure-proof supply chain. Unfortunately, this is simply impossible. What you can do, however, is take advantage of six ways to make your supply chain more sustainable and, therefore, safer!

1. Know Your Supply Chain Inside Out

In order to make your supply chain more sustainable, you need to know exactly what areas to target and your weak points. So, take the time to map your supply chain comprehensively. Identify your environmental challenges, inventory your suppliers, check over shipment problems you’ve had, and review your employees’ performance.

Do a major audit of your business and its supply chain. You cannot afford to let any part of your business drag you down. Having a warehouse manager who doesn’t even understand the difference between inventory management vs. warehouse management is one of those things. Nor can you afford to continue using shipping routes that clearly have a high accident rate and are often congested.

Besides, even though you likely once knew everything about your supply chain, you might be surprised by the changes that have slipped by you in the meantime.

2. Evaluate Your Supplier Performance

Suppliers are always a potential weakness for your supply chain.

No matter how well the rest of the system functions, it’s useless if you have no goods to move through it. So, you need to ensure that your suppliers meet your baseline expectations.

One of the ways logistics businesses have been doing this recently is through baseline assessment questionnaires and surveys. They should be submitted to your suppliers for self-assessment and completed by your employees. Any discrepancies should be closely looked into. If a supplier is satisfied with their performance despite the data you have that reflects poorly on them, then you should look for an alternative. It is not your job to improve their business.

Your task is to find the best quality goods for your customers. Of course, work to overcome problems if your supplier is willing to cooperate.

3. Invest in Employee Training

You cannot make your supply chain more sustainable without sufficient support from your employees at every level.

Warehouse managers need to be able to handle the quick turnover of goods. Warehouse employees need to be fast and efficient. Truckers must know how to properly maintain their vehicles and keep themselves and their cargo safe. And obviously, higher-level managers need to have a keen eye for spotting problems and handling them before they grow bigger.

This is all easier said than done. Especially when the law actively starts working against you, such as in the case of Californian law attacking truckers and the supply chain.

One of the biggest challenges in the industry is the quick turnover of employees. In other words, you need to find ways to incentivize them to stay or constantly bear the cost of training new batches, all the while knowing they will leave.

4. Make the Necessary Equipment Investments

Your supply chain is highly reliant on your available equipment.

You may have trucks that are the lifeblood of your business, and if they are not adequately maintained, you will start racking in losses faster than you can make money. As the experts from divinemoving.com point out, the better the state of your trucks, the faster and more safely you can complete deliveries, too! Of course, this is hardly the extent of investing in equipment.

It would help if you looked toward new tech to make your supply chain more sustainable and competitive. This does include newer, better transport, drones, and all kinds of other aids. But it also includes software meant to automate your supply chain, keep track of deliveries, and analyze shifts in the market demand. Only by holistically improving your supply chain will you make it more robust.

5. Set Clear Goals and Communicate Them

Not all supply chain failures should be attributed to supplies and shippers. Sometimes, the fault lies with you.

You may have set firm goals, such as increasing the volume of shipments and improving delivery times. But, if you don’t properly communicate this to your suppliers and other associates, then they will naturally fail to live up to your expectations. The same applies to the internal components of your supply chain. Your employees cannot be expected to make meaningful changes if you do not give them clear directions as to how to make them.

Vague and uninspiring goals, such as ‘increasing work efficiency’ and ‘boosting sales numbers’ are all well and good. But you can’t leave them up to individual managers to interpret. Your supply chain will quickly destabilize because of clashing development directions.

It’s your job to guide your employees forward with well-formulated plans.

Always Be on the Lookout

A supply chain is almost a living, breathing thing. To make your supply chain more sustainable, you need to stay abreast of the newest developments.

Logistical problems halfway across the world can come back to haunt you, let alone things happening in your own country. Of course, no matter how much time you put into understanding logistics, you cannot beat all odds. But, you can:

● Audit employees regularly
● Find backup suppliers and shippers
● Push for employee improvement and specialization
● Look for new, promising team leaders and managers
● Review and adjust your business strategy
● Always make contracts that leave some wiggle room in delivery times

This way, you can dodge most pitfalls and minimize the effects of bad developments until you can eliminate them entirely. The world of logistics constantly changes, so make as many contingencies as possible.

Final Comment

Following these six ways to make your supply chain more sustainable, you will take a step towards securing the future of your business. Still, if the global logistics crisis has taught us anything, it is that nothing is foolproof. The only thing you can do is try your best and believe in the fruits of your efforts.

This was a guest post by Adrian Jacobs.

Author Bio

Adrian Jacobs is an experienced team leader and warehouse manager of a small logistics business. He likes to share his knowledge and experience through blog posts, especially after having a front-row seat to how badly a supply chain can fail during the global logistics crisis.

The post 6 Ways to Make Your Supply Chain More Sustainable appeared first on Universal Cargo.

Consider you are an importer, sourcing pharmaceutical intermediary chemicals for a leading manufacturing company in the U.S. You are importing the products from India, China, Thailand, and Vietnam and delivering them to a pharmaceutical manufacturing plant in Columbus, Ohio. 

You need to manage multiple suppliers, vendors, shipping partners, government agencies, trucking companies, and finally – your client. You have to effectively manage and operate all the moving parts for a robust supply chain to deliver products to your clients. Effective supply chain management (SCM) helps you in achieving that. Let us dive into some of the means to establish it.

1. Automation

Equipment and processes at various points of the supply chain, from warehouse to delivery, can be automated. It is undeniable that automation significantly increases the efficiency of your supply chain operations. This is possible as automation reduces human errors and increases supply chain velocity. Picking robots pick products faster and more accurately and sorting robots precisely sort products taking very little time. Similarly, other autonomous robots reduce the time and improve the accuracy of supply chain processes.

The information transfer on automation decisions has to start from the top of the organization and decisions should be need-based. You can consider cobots, which work alongside humans, before plunging into fully automated robots. This helps in a smoother transition to a fully automated supply chain powered by IoT-enabled fully autonomous robots. An additional factor you have to consider is the financial viability of automating equipment and processes in the supply chain. If the capital expenditure can break even within a reasonable time, implementation is worth considering.

2. Information Technology

The exchange of accurate and timely information is necessary for smooth supply chain operations. Information technology enables the collecting, organizing, and disseminating of information across the whole supply chain – making it lean, cost-effective, and efficient. For instance, using a maintenance automation tool to manage warehouse maintenance causes minimal disruption to normal warehouse operations. This reduces the labor, time, and effort involved in maintaining well-run warehouse operations.

Analytics also help to establish effective SCM. These tools can use the large volume of data collected to generate actionable insights into warehouse operations. For example, analytics can be used to estimate future demand for various products. This demand can be backward engineered to estimate the number of materials required and the time in which they are required. Thus, demand forecast analytics helps to optimize the inventory levels and in turn the supply chain operations. Similarly, analytics can also be used to solve various problems in SCM to make it more efficient.

3. Supply Chain Visibility

Supply chain visibility is the ability to view and track the movement of materials and goods through the supply chain from a central location. Supply chains are complex and it is difficult to have complete visibility into supply chain operations, especially into suppliers and distributors. But, with clever use of modern technology, this is possible. 

This helps to identify issues and resolve them faster without spreading the trouble to the rest of the supply chain. Visibility into the operations of suppliers and distributors helps you adjust and pivot your operations with agility. Supply chain visibility aided by modern technology can assist in maintaining optimal inventory, reducing costs, and increasing efficiency.

4. Employee Investment

Employees working at docks are important for any business in importing or exporting goods from the United States. In recent years, the remuneration of these employees has gone up, contributing to about 35 to 65 percent of the distribution and fulfillment costs. Most employees only have the capability to perform some usual tasks, but they lack the skills to tackle problems or challenges in the workplace. 

Employees should be provided coaching, mentoring, and training to impart them with knowledge of the supply chain they are part of. You also need to provide them with a clear career progression path to have a purpose for their performance. Another suggestion you can use is empowering them with responsibilities so they can act according to their knowledge and training.

5. Continuous Improvement

Kaizen is the philosophy of continuous improvement that is part of six sigma and lean methodologies for improving supply chains. You might have initiated SCM for some specific goals and SCM has helped you in achieving these goals. But you should not dismantle your SCM efforts once those goals are achieved. 

Suppose you have upgraded from forklifts to robotic forklifts to move pallets in and out of shipping containers. This definitely improves the time and speed of pallet movement operations. But – you should not be stopping the efforts to improve this part of operations. You can try various combinations of using robotic forklifts to improve on these metrics. Also, you can attempt different stacking techniques. In short, SCM should not be undertaken as a one-time effort, but as a continuous process to improve efficiency and reduce supply chain costs.

Effective SCM Delivers

Effective SCM impacts all the aspects that facilitate the flow of goods in the supply chain. Aside from covering the operational aspects, it also covers data, finance, and people management. It is a holistic approach to improving the efficiency of the supply chain while reducing costs. 

Some of the benefits of building an effective SCM in your organization are:

• Reduced cost
• Optimized supply chain 
• Decreased lead time
• Higher-quality delivers
• Higher supply chain visibility
• Supply chain resilience
• Agile supply chain

Though the benefits of SCM are obvious and plentiful, it is not an easy task to manage such a complex network of interconnected entities. To reap the benefits of SCM, you need to rely on the different means discussed above to establish effective SCM.

This was a guest post by Bryan Christiansen.

About the Author

Bryan Christiansen is the founder and CEO of Limble CMMS. Limble is a modern, easy-to-use mobile CMMS software that takes the stress and chaos out of maintenance by helping managers organize, automate, and streamline their maintenance operations.

The post 5 Ways To Establish Effective Supply Chain Management and Reap Its Benefits appeared first on Universal Cargo.

This is a guest post by John Meyers.

As similar as they may sound, inventory management and warehouse management are not the same. They both incorporate operations and management of products that are part and parcel of the import, export, and distribution industries. Yet, the two terms entail some distinctive features and differences that are crucial to acknowledge if you want to run your business well. In fact, conflating the two processes might give rise to complex management issues in your supply chain. That is why it makes sense to distinguish between the two by taking careful notice of the differences. 

In fact, both warehouse managers and business owners who rely on the import and export of goods benefit from differentiating between inventory management and warehouse management. The key advantage to relegating these two processes to different management systems lies in the opportunity to increase profitability as well as productivity. There are numerous ways this division of labor achieves this, but curtailing mistakes and delays in shipment due to ineffective logistics counts as a major benefit.

What Is Inventory Management?

Inventory management refers to a group of processes that relate mainly to supply chain management, predictions in terms of supply and demand, and the management and control of inventory itself. In most cases, it will precede the management that happens in the domain of warehousing. 

In other words, inventory management contributes to the effective and timely management of inventory and logistics tools. These include safety stock or the suppliance of enough goods to satisfy demand, economic organization, and ordering of goods. In addition, close monitoring of suppliers and price of goods, the general inventory turnover for each facility you run, then customer-managed and vendor-managed inventory. 

Hence, there is quite a lot that falls into the domain of inventory management. In that sense, sidelining inventory logistics can be quite damaging for an emerging business. What’s more, the success of small and medium-sized businesses depends on appropriate inventory management because it ensures careful, incremental planning, organization, and monitoring of the goods and tools you use for your business. 

As a result, businesses minimize financial losses, particularly in terms of surplus inventory, rental of warehouse space, shipping costs and penalties, as well as reverse logistics. 

What Is Warehouse Management?

As opposed to inventory management, warehouse management centers on managing the storage and transportation of goods within the warehouse itself. So, this would be the internal management of all the items, products, machines, materials, and other items that you store in a warehouse facility. 

In order to do this successfully and efficiently, many warehouse managers rely on warehouse management systems (WMS). WMSs are systems or software that allow you to maintain centralized management of all warehousing that goes on. For instance, tracking inventory in terms of location and stock can go through the WMS. 

You can use older WMS systems with basic functions such as storage location tracking. Otherwise, go for a more recent, advanced version to track parameters such as the volume of your goods and the scope of business operations. Typically, these processes require you to coordinate an entire warehouse management team. In that sense, a WMS management system can speed up the delegation and operationalization of these tasks.

However, keep in mind that inventory tracking within the warehouse does not entail the same processes as warehouse management. But first, the similarities.

What Are the Similarities Between Inventory Management and Warehouse Management?

Both of these processes use barcoding devices that allow businesses to manage goods. Once you set up your own tracking system, you can carefully monitor your warehouse capacities and stock of goods, pickup and packing dates and supplies, shipment status, pending orders, organization of storing locations… 

The Difference Between Warehouse Management and Inventory Management

Realizing the difference between these managements, you are effectively minimizing the danger of human error since everything that comes and goes into your warehouse goes through a digital database as well as two distinct management frameworks. Ultimately, dividing the workload into external inventory management and internal warehouse management keeps everything professional, streamlined, and effective. In fact, this kind of division of labor is invaluable for emerging businesses as it allows a comprehensive overview of all aspects and stages in your enterprise’s storage, tracking, and supply management operations.

So, even though they both pertain to the management of your goods, the differences are still pronounced enough to justify the observance of both as separate processes in your workflow. In fact, the sheer complexity of warehouse management necessitates a modular approach to logistics planning. 

Complexity and Range

Inventory management systems are typically simpler in scope and volume of work. Essentially, the principal task of your inventory management staff involves keeping tabs on the supply processes by listing the quantities of stored goods and items. Also, inventory management typically manages only a single location.

Zoom out and observe your business inventory through the lens of your entire warehouse network. In brief, that is what warehouse management systems take care of. So, you will deal with inventory management if you compartmentalize and delegate responsibilities to different warehousing units. 

On the other hand, warehouse management allows you to observe your warehousing capacities from a top-down approach. In that sense, you have access to your entire warehousing system in all locations, as well as smaller sections and units within individual warehouses. 

Different Types of Organization and Information on Goods

Another difference concerns the accuracy of tracking in that warehousing management locates the exact location of the item in your system. In contrast, inventory management only pays attention to whether and how many items the warehouse contains. 

So, inventory management notes down the type and quantity of products and materials you are in possession of. However, you do not have immediate and comprehensive access to where and how the items are stored. Furthermore, warehousing management plays an important role in the management of operations in other departments.

This was a guest post by John Meyers.

Author Bio

John Meyers is a warehouse manager with 25+ years of experience working with logistics departments of import-export businesses across the country. In recent years, his professional expertise has focused on warehousing management for eCommerce businesses and transportation companies. Furthermore, he also collaborates with shipping, freight, and moving companies such as Family Affair Moving with the aim to establish the best logistics practices.

The post Inventory Management vs. Warehouse Management: What’s the Difference? appeared first on Universal Cargo.

Having a well-optimized warehouse is a dream for any manager. Whether you run a large storage facility or a fairly modest one, it is always in your best interest for it to be as optimized as possible. Unfortunately, achieving high-level optimization is easier said than done as every warehouse deals with different issues. But, some general guidelines can make your optimization process more manageable. This article will explore top warehouse optimization tips and how you can use them to improve your fulfillment.

When it comes to optimizing warehouses, the expertise of a seasoned business leader like Kurt can be invaluable. With his background as the President for growth-oriented companies, Kurt brings a wealth of experience in streamlining operations and maximizing efficiency. His strategic insights can help warehouse managers identify and address inefficiencies, whether it’s through implementing advanced technology solutions or refining logistical processes. Kurt’s leadership can pave the way for innovative approaches to warehouse optimization, ensuring that businesses stay competitive in today’s fast-paced market.

Top Warehouse Optimization Tips to Consider

Before we start, it is worth noting that you shouldn’t try to apply all of these tips at once. Doing so will likely lead to subpar results. Modern warehousing is pretty complex. And the best course of action is to outline where your warehouse is most lacking and apply the proper solution. While all of the following tips will seem pretty straightforward, they can be tricky to put into practice. This is why you need to focus on one solution at a time if you are to apply them properly. Once you succeed, you can quickly proceed to the next one until you have a fully optimized warehouse.

Streamline the Receiving Process

The process of receiving entails:

• Making sure that the shipment arrived on time
• Verifying that you received the right product
• Confirming that you received the correct quantity
• Making sure that everything is in the proper condition

These are four relatively simple tasks. But, seeing how often you need to do them and not make any mistakes, it stands to reason that you ought to optimize them. An excellent way to start is by using dimensioners. With these, you can easily capture the weight and the dimensions of a parcel, making the verification process considerably faster. Furthermore, you really ought to invest in a decent labor management system. Having one makes allocating the necessary workforce a whole lot easier.

Make Use of Space Management Systems

Once you receive the items, it is in your interest to put them away as quickly as possible. This entails both finding the optimal location within your warehouse and transporting your items quickly to it. Again, a seemingly simple task that can be tricky to tackle. To make it easier, we suggest that you use a space management system suitable for your type of warehouse. Having one makes communication between managers and workers far more streamlined. And it makes finding the optimal location for new items essentially automatic.

Outline Storage KPIs

Whether or not you have optimized storage can be surprisingly hard to tell. While it may seem that you are making full use of the available space, you can have surprisingly large gaps in overall functionality. So, if you wish to optimize the storage within your warehouse, we suggest that you outline the important KPIs (Key Performance Indicators). Ideally, you will consult with an experienced warehouse manager and define which KPIs are most important to track. Then you need to utilize the right software and see what you need to improve and how effective your improvements are over time.

Use Optimal Picking Technologies

The process of picking entails collecting the necessary products to fulfill a customer’s order. As such, it accounts for 55% of the total operating cost of a warehouse. With this in mind, it should come as little surprise that optimizing your picking process is in your best interest, especially in the long run. But, the process of optimization is rarely easy. You need to start having the right picking technologies at your disposal. These include:

• Giving your warehouse managers mobile devices to view picking lists wirelessly
• Providing managers with full inventory tracking capabilities within the warehouse
• Giving them easy access to your database in real-time

It would be best if you also improved your warehouse layout with an ABC analysis. And select the suitable picking methodology to assist managers in everyday tasks. It all relies on having the necessary technologies and regularly consulting with your managers on what can be improved.

Use an Automated Packing System

Proper packing is the telltale sign of a good shipping company. But, to handle it with decent efficiency, you can hardly rely on your warehouse managers’ perception and know-how. Perhaps smaller companies that don’t pack many items within their warehouses can. After all, experts from miamimoversforless.com provide decent packing while not utilizing any high-end systems. But, if you plan on running a sizable warehouse where you pack and ship large quantities daily, you need to have an automated packing system in place. This system provides data about the dimensions, weight, and fragility of items that require packing. With this info, your workers can efficiently approach every packing task and ensure that their job is efficient and well-handled.

Automate Data Acquisition and Transfer

You cannot consider your warehouse as well-optimized if it does not efficiently communicate with shipping companies. After all, the whole point of an optimized warehouse is to have an efficient supply chain. So, the more you can integrate your warehouse within the shipping system of the companies you work with, the better. You need to make both data acquisition and automatic transfer to make this possible. Such systems eliminate human error and ensure that your warehouse is properly integrated within the supply chain.

Final Thoughts

As you probably noticed, most warehouse optimization tips rely on using some form of modern technology. So before you seek out new ones, we strongly recommend that you carefully compare their price vs. benefits. The cost of buying and running a new technology may seem high. But if you factor in the increased revenue due to having a well-optimized warehouse, you will soon see that they are well worth the cost.

This was a guest post by Daniel Jackson.

Author Bio

Daniel Jackson has worked in logistics for 15 years, and recently he began writing articles, hoping to help companies improve their operations and cut costs. In his free time, Daniel plays chess and enjoys cooking.

The post 6 Warehouse Optimization Tips to Improve Your Fulfillment appeared first on Universal Cargo.

This is a guest post by Jake Rheude.

After the past few years, we must salute any inventory control and operations professionals who still have all their hair and failed to add creases to their foreheads. It’s been a tough time, to say the least, and each professional still standing is worth celebrating. While our experiences are similar, there are nuances to each business’s inventory control disruptions during the pandemic. The unfortunate word is that uncertainty seems to be here to stay.

Supply chain professionals need to take a new approach to effectiveness and efficiency to address the uncertainty. Most of this will occur before any decisions are made. Robust analytics, tracking of national and global trends, and forecasting everything tangentially related to inventory is just a start. Let’s look at those and some other activities that will be the norm, at least for the foreseeable future.

1. Rethink Your Lean and Plenty Approach

The long-standing lean approach to manufacturing and supply chains has been thoroughly smashed during the pandemic, even as consumer confidence, disposable income, and spending levels rose and fell. Supply chains grinding to a halt and then sprinting without a warmup have shown how ill-prepared a lean approach can be, while highlighting risks and the temptation to embrace the “plenty” approach to inventory.

Increasing pandemic safety stock to have more “just-in-case” of future disruption has become the norm. Many companies realize that pandemic spending has not remained, creating risks for overextending capital. Some cannot now recoup enough revenue to shift their inventory strategies to any significant degree. Operations are slowed and waiting in the hope that sales and marketing can outperform again. Unfortunately, after pandemic years of 25% to 75% growth in the eCommerce space, it is hard to expect sales to achieve double-digit growth this year.

Perhaps most important is reviewing stock levels and making regular adjustments while being flexible in operations. It’s time to assess safety stock and inventory formulae. Look at past data. Which options would have helped you predict and act accordingly based on what has happened? Is there a safety stock formula that more accurately describes last quarter?

Operations leads need time and focus to look for best-fit solutions for their businesses. Take a thoughtful approach to managing inventory and try to address broader market conditions instead of knee jerk reactions.

2. Focus on National Trends

While you may be reducing your safety stock, there likely are points in your supply chain where stockpiles are increasing. Some companies will be raising inventory levels, though these may be raw materials. Work to understand where that might happen and why, whether it’s companies seizing an opportunity or trying to mitigate risk.

Large shortages, such as steel and other construction materials, can impact supply chain effectiveness in various ways. Many fulfillment and warehouse companies are buying up racking and other materials to ensure they can expand. Some are making these purchases before or when they break ground on new warehouse construction. They’re willing to buy and hold these materials for months just to guard against a shortage when it comes time to install racking.

Today’s safety stock equations need to be company-wide. Operations leaders will need to get creative about what they track, which projects are impacted, and what needs protection. National trends may help you spot labor or material shortages, while also identifying new options for supply chain moves as ports like Savannah expand and increase freight opportunities.

3. Shorten the Analytics Cycle

Analytics and projections drive many inventory controls and tactics. Knowing how the world looks now and how that has changed since last quarter or year can help to inform us on best practices and safer courses of action. Unfortunately, the time between a new event and a supply-chain-wide reaction seems to have shrunk dramatically during the pandemic.

Companies will want to consider running more analytics and adding dashboard elements that track shorter timeframes to respond. Year-over-year models may guide some larger efforts, but the business intelligence potential of quarterly, month-over-month, or even weekly analysis can’t be overstated. 

Inform these with the national trends you’re tracking. General Motors’ recently announcing plans to shut down plants due to the ongoing semiconductor shortage is a good canary. The company is responding to an inventory issue and managing future production accordingly.

Look for similar tactics in your inventory management. You might be balancing production versus demand or staging inventory early. Some companies are increasing stock holdings and using a central warehouse to resupply various distribution points when they have order volume. Others, however, have shored up inventory only to see orders slow and the threat of long-term storage cost increase, cutting into SKU-level profitability dramatically.

4. Plan for the Next Wave

With every pandemic variant, we hear that things are starting to clear, and the threat has increased as people and companies relax too soon. Unfortunately, early 2022 highlighted increased risks as China has continued to slow down or close many of the country’s major trade hubs. Terminals, depots, and ports serving both local and export traffic are constricting, furthering delays. As ripples become waves of disruption, we’re also beginning to see issues stretch back through manufacturing and assembly plants.

Inventory control practices will need to address the likelihood of continued waves and delays. Some companies have already lost direct suppliers while many others are impacted indirectly as raw materials are delayed in transit, or are disrupted due to Russia’s military aggression against Ukraine.

The global supply chain is facing a new era of volatility. Increased prices coupled with decreased availability and trade volume are likely to put further strains on every point in a supply chain, not just ports. We’re not sure what’s coming next, but there’s no doubt that another challenge is just around the corner.

This was a guest post by Jake Rheude.

Author Bio

Jake Rheude is the Vice President of Marketing for Red Stag Fulfillment, an eCommerce fulfillment warehouse that was born out of eCommerce. He has years of experience in eCommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others.

The post Inventory Control Disruption: 4 Big Tips for Post Pandemic Need for Supply Chain Effectiveness appeared first on Universal Cargo.

Establishing and running a decent supply chain entails solving numerous problems. But, to outline the correct issues and how to solve them, you need to pay attention to specific Key Performance Indicators (KPIs). So, to help you out, we will cover seven supply chain KPIs you should be measuring.

Important Supply Chain KPIs You Should Be Measuring

The following supply chain KPIs should give you a rough idea of how well your supply chain is doing. Depending on the intricacies of a particular supply chain, you may want to introduce other, more specialized KPIs to customize your supply chain further. Outlining which KPIs are important takes a fair bit of knowledge and experience. So, don’t shy away from consulting with more experienced professionals.

Perfect Order

Let’s start with what is commonly considered the most important KPI for evaluating the effectiveness of a supply chain. Namely, Perfect Order refers to a compound of metrics that give you an overview of vital aspects of the order fulfillment process (they ensure that your order is perfect). Furthermore, with these metrics, you can also track delivery operations and storage and management costs. The key metrics of Perfect Order KPI include:

• In-full delivery. This indicates the percentage of successful deliveries (the right person got the right package).
• On-time delivery. This indicates what percentage of deliveries were made on time.
• Accurate documentation. This indicates the percentage of sales deliveries delivered to the customers who had the proper paperwork.

This metric is vital for moving companies, for example. According to Royal Moving Company, it helps them outline how efficient their services are. Furthermore, it can allow you to trace potential issues in your moving service and hopefully fix them with relative ease.

Fill Rate

Another essential KPI for a successful supply chain is the fill rate. It indicates the percentage of SKU that you managed to ship successfully in the first go. This rate also helps you follow the in-full performance of your supply chain, as you can track:

• Order fill – the percentage of successful orders you’ve completed on the first go
• Line fill – the percentage of order lines you’ve successfully delivered on the first go
• Unit fill – the percentage of items you’ve successfully delivered on the first go

Gross Margin Return on Investment

There is no better KPI to follow for figuring out your inventory investment than the gross margin return. It shows the exact profit you’ve had from a specified amount of inventory investment. If you follow this KPI in the long run, you can pinpoint slow-moving items that yield little profit. Therefore, you can better optimize your warehouse and make profitable plans for the future. You can calculate gross margin return on investment (GMROI) with a simple equation:

GMROI = (Gross Profit) / [(Opening Stock – Closing Stock) / 2] X 100

If your GMROI is between 200 and 225, you can rest easy with having good profitability.

Inventory Velocity

Inventory velocity indicates what percentage of inventory is estimated to finish during a set period. As such, this KPI is quite important. You can use it to:

• Gain valuable insight into warehousing operations
• Optimize your inventory levels
• Have an easier time meeting customer demands
• Reduce the risk of outdated inventory

You can calculate inventory velocity with a simple equation:

Inventory Velocity = Opening Stock / Next Period’s Sales Forecast

You are good if your inventory velocity is between 60% and 70%. You should expect between 75% and 80% for fast-moving stock items. Anything below 60% or above 80% is considered risky. The first shows the risk of excess stock. While the second indicates a general shortage.

Inventory Days of Supply

If you want to know how many days your inventory can go without restocking, you will check the inventory days of supply KPI. You can estimate when you need to replenish your warehouse to be ready for higher demand by keeping track of it. Having a well-stocked inventory ensures the resilience of your supply chain because you are not as vulnerable to delays [like those caused by China’s lockdown of Shanghai] or sudden increases in demand. Ideally, you would monitor this KPI daily. That way, you can make sure to refill the inventory in a timely fashion.

Cash to Cash Cycle Time

Cash to cash cycle time indicates the number of days it takes between paying for raw materials and getting revenue from your products. The lower this KPI is, the more profitable you are. It also indicates that your delivery service and storage are properly managed, as you can keep up with the demand.

Inventory Turnover

The last of the supply chain KPIs you should be measuring is the inventory turnover. You can find out how many times you sell your entire inventory during a set period. This is especially useful if you combine it with inventory tracking. By knowing this, you can gain further insight into:

• Order fulfillment efficiency
• Marketing and sales operations
• Product processes

You can easily calculate inventory turnover with this equation:

Inventory Turnover Ratio = Cost of Goods Sold / {(Opening Stock – Closing Stock) / 2}

Final Thoughts

If you wish to find more specific supply chain KPIs you should be measuring, we suggest that you first carefully outline the details of your supply chain. More often than not, you will find a weak link where you are losing efficiency. Then, if you apply a KPI to that link, you can test out different ways of improving it. Again, consulting with experienced supply chain specialists is highly recommended, especially those with experience in your field.

Finally, don’t try to incorporate all of these KPIs at once. If you have little experience, consider incorporating them one by one. That way, you can learn how your company impacts those KPIs and what their metrics show.

This was a guest post by Daniel Jackson.

Author Bio

Daniel Jackson has worked in logistics for 15 years and recently he began writing articles, hoping to help companies improve their operations and cut costs. In his free time, Daniel plays chess and enjoys cooking.

The post 7 Supply Chain KPIs You Should Be Measuring appeared first on Universal Cargo.

Once people first hear of it, omnichannel logistics sounds fantastic. The idea of having all the aspects of logistics, including inventory, distribution, and the entire supply chain housed on a single channel, does seem like a dream come true. But, as it is with all dreams, the reality is a bit more complicated and a bit more challenging to tackle. In this article, we will go over the challenges of omnichannel logistics and give you an idea of what it would take to handle them.

Challenges of Omnichannel Logistics

Before we start, it is worth noting that omnichannel logistics usually improves the shipping capabilities of a company. The ease of access to valuable info makes handling shipments easier. And the fact that your inventory is updated across all channels makes handling retail needs far more manageable. If you are considering whether to invest in an omnichannel logistics system, know that our recommendation is to do so even though there are specific challenges to overcome.

Inventory Visibility

A significant advantage of omnichannel logistics is that every member of the channel can see the inventory. Every sales agent and retail manager can easily see whether you have a specific item in stock. But unfortunately, no omnichannel system is robust enough to keep a perfect live feed of your inventory, especially during high-sales periods like holidays.

If there are a lot of items getting shipped out of your inventory, it can be almost impossible to keep track of what’s in stock. If you offer next-day delivery, this can be a serious problem. When your customer expects to receive the item, they will get a notice that you don’t have it in stock. This, as you can imagine, will lead to poor customer reviews and a generally low customer satisfaction rating.

The second inventory visibility challenge the omnichannel system faces is in-transit visibility. While modern channels have systems that can indicate exact delivery times, they are still not robust enough to predict potential delays. No matter how optimized your supply chain is, these delays will happen. And once they do, you will still need to have a line of communication between the delivery person and the support team to see what can be done. And handling and outlining all this information on a single channel can be challenging.

Supply Chain Integration

For your omnichannel system to do what it’s supposed to, all the members need to connect to it and only to it. Depending on how intuitive and easy-to-use the channel is, members of your supply chain may resort to other channels. This causes a problem, as the whole point of an omnichannel system is to keep track of everything. That is why it has the prefix “Omni.” This company-wide implementation will require some work, and you will have to teach your employees how to use it. And you will have to incentivize them not to use other channels, even if doing so seems more efficient.

Order Processing

Same-day and even next-day delivery require some top-notch order processing. Namely, what has to happen is that the customer fills out their order and the company representative receives the order and passes it on to delivery people, without any errors. If you have any experience in shipping, you already know that this is easier said than done. There are good reasons why order processing is an important step. And why checking and double-checking the order information is vital. With an omnichannel system, this is possible. But you need to have the necessary safeguards. Relying on unverified info can cause significant problems. And it is your job to figure out prevention methods.

Return Logistics

Handling standard shipments is one thing. But knowing how to handle returns efficiently is entirely another. Not only do you need to write a reasonable return policy and verify the validity of returns. But, you also need to organize shipping services and update your inventory accordingly. As you can imagine, this takes up even more time and resources. And without an efficient return procedure, your customers are bound to be dissatisfied.

Finding the Right Transport

There are many ways to get a product distribution center to the customer’s doorstep. The trick is finding the most efficient one. Again, we run into the issue of easier said than done, as omnichannel logistics doesn’t solve this for you. This is a common logistics problem that requires ample experience and industry knowledge. And it is something that you’ll have to tackle once you implement an omnichannel logistics system.

3PL

If you plan on dealing with any type of long-distance shipping, then third-party logistics (3PL) is likely in your future. Unfortunately, just because you are using an omnichannel system with relative ease doesn’t mean that the third-party company will be able to connect to it easily. Even similar channels require considerable integration in order to both share important data and protect sensitive information. Spyder Moving informs us, as most moving companies tend to rely on 3PL for international shipping, there might even be a language barrier to overcome.

Final Thoughts on the Challenges of Omnichannel Logistics

As you can see, when it comes to the challenges of omnichannel logistics, there are notable ones to speak of. But, none of them are impossible to overcome. With some research and forethought, you can easily avoid all the potential mistakes and issues that omnichannel systems carry. Our advice is to consult with both system providers and learn from companies within your industry that used them before, especially when it comes to handling 3PL. By doing so, you will avoid most of the potential issues and, hopefully, ensure a solid optimized omnichannel logistics system for your company.

This was a guest post by Edson Mitchell.

Author bio:

Edson Mitchell has worked as a shipping coordinator for over 20 years. He now focuses on consultation work and writing helpful articles about shipping in general.

The post Common Challenges of Omnichannel Logistics appeared first on Universal Cargo.

When trying to understand how the modern world economy works, you cannot help but appreciate the role of shipping containers. The only way in which one company could gather raw materials in one country, convert those materials into products in a second country, and then sell said products in a third is by clever use of shipping containers. So we will use this article to take a step back and give you a couple of fun facts about containers and container ships.

Top Fun Facts About Containers and Container Ships

The more you look into containers and container ships, the more you will learn just how interesting they can be. From the variety of modern uses to the changes brought by industry needs, containers have quite a few stories to tell. So if what you read here seems interesting, don’t shy away from doing further research into this often underappreciated subject.

Variety of Containers

If you base your knowledge of containers on what you see in movies and TV shows, you might believe that there are only 20′ shipping containers. And while they are the most common, they aren’t the only ones. Apart from them you also have:

• Both 10′ and 40′ containers
• Containers with open tops or sides – This allows for easier loading and transporting of extra-long items
• Liquid containers
• Insulated containers – If you need to transport perishable goods, you can hardly rely on a standard container to keep them safe. Insulated or climate-controlled containers are often necessary for safe, long-distance shipping
• Swap body containers – These containers have a convertible top

The Size of Container Ships

While we all know that container ships are by no means small, people often underestimate how big they can get. Keep in mind that these ships need to transport thousands of shipping containers, not to mention all the extra cargo necessary to keep those containers safe. Some of the largest container ships include:

• Ever Ace – 23,999 TEU (TEU stands for Twenty-foot Equivalent Unit. Simply put, this is the number of 20′ containers the ship can transport).
• HMM Algeciras – 23,964 TEU
• MSC Gülsün – 23,756 TEU

Variety of Uses for Containers

If you were to ask someone, “What are containers used for?” they would likely answer you, “For shipping.” While this is their primary use, it is also worth noting that people use containers for many different purposes. Because they are sturdy, spacious, and easy to maintain, shipping containers found use as:

• Equipment storage.
• Construction site storage.
• Makeshift offices.

There are many other uses as well. If you need to handle a difficult relocation, the moving crew at ccmover.com suggests using a shipping container as temporary storage.

Almost All Shipping Containers Come from China

While shipping containers have worldwide use, it is worth noting that over 95% of containers are made in China. Due to a relatively cheap labor force and a stronghold on the container industry, China is firmly standing as the leading producer of shipping containers.

We Made the First Container in 1956

While shipping containers seem like a relatively modern invention, we are slowly reaching their 70th anniversary. In 1956, Malcolm McLean created the first standard shipping container. Although, if you take a closer look at logistics’ history, you will find that most advancements in the shipping industry were pushed by military needs.

Not All Containers Are Interchangeable

The variety of uses for shipping containers might give you the impression that every container can pretty much ship any item. While this can be true for some, it is definitely not the case for all containers. Namely, if we were to use a container for shipping food supplies, food shipping becomes its only use. Chemical contamination is a big concern to shipping companies and organic goods manufacturers. And the easiest way to avoid contamination is to have designated containers for specific use. Imagine the potential harm of first transporting dangerous chemicals and then transporting food items. Even a trace could spoil the entire shipment.

We Ship Plenty of Empty Containers

You would think that in the modern era of high-tech logistics and AI-assisted planning, we would be able to maximize the efficiency of shipping. But, in actuality, modern shipping can still be surprisingly inefficient. A clear example of this is that we still ship a decent number of empty containers on a regular basis. An imbalance in export/import needs usually facilitates the need for empty containers. So while some are due to poor planning, others are simply a product of necessity.

Thousands of Containers Get Lost Every Year

Even with top-notch technology and modern shipping equipment, it is still impossible to ensure 100% safety of containers, especially when it comes to overseas shipping. Bad weather and rough waters make shipping difficult even for experienced crew members. Although some estimates vary, it is still safe to say that thousands get lost to the ocean depths. In fact, no matter whose estimate you look at, over a thousand containers are lost per year.

Shipping Containers Can Float

With the previous fact in mind, you might believe that shipping containers sink the moment they hit the water. In actuality, most of them float for quite a while. Containers are filled with air and are usually quite tightly sealed. So even if they are not entirely waterproof, it will still take water quite a while to seep in. How long it will take for a container to sink is based on the type of cargo and the quality of the seal. But you’d be surprised at how long some containers managed to stay afloat.

Container City

The last of the fun facts about containers and container ships that we’ll mention is that there is a city in Mexico that is entirely based around shipping containers. The people of Cholula use shipping containers to create space for shops, restaurants, and other facilities. They also place containers in a planned way so that they have streets and courtyards. This repurposing of containers shows how useful they can be and how creative people can get when using them.

This was a guest post by Alan Porter.

Author Bio:

Alan Porter worked as a logistics specialist for over 15 years. He now mainly works as a consultant and writes helpful articles about logistics and shipping in general.

The post Fun Facts About Containers and Container Ships appeared first on Universal Cargo.

The new year has continued the shipping issues that plagued the second half of 2021. Global supply chains continue to struggle. Ports deal with clogged dockyards or a surplus of empty containers, and small-to-medium-sized shippers are left to deal with the impact of these issues. 

Meanwhile, Amazon, one of the biggest companies globally, surges on. Between its fleet of ships and planes and its vast number of warehouses, it is nearly a carrier in its own right. They can ignore many shipping issues that plague smaller businesses through size alone. However, that doesn’t mean other companies can’t look to the megacorp for inspiration. Here are three lessons that smaller companies that import or export goods can learn from Amazon’s shipping success.

1. Prioritize E-Commerce

E-commerce is booming across the globe. Though Amazon is the leading online marketplace, it is far from the only one. With the prevalence of e-commerce, online platforms are part of almost every export transaction.

However, other rapidly-growing online marketplaces can pose exciting partnership opportunities. For instance, Jet.com is growing 280 times faster than Amazon. And, since it focuses on full carts, bulk purchases, and free (but not fast) shipping, it is a rising alternative to Amazon’s chokehold. 

Digitizing your infrastructure has many benefits beyond staying technologically relevant. For example, e-commerce platform integration allows for:

• Ample choice of third-party logistic service providers to simplify your operations.
• Warehouse outsourcing while maintaining direct control and overview of your inventories.
• Integration with freight-forwarding fulfillment companies to send your products directly to your warehouses.
• Tracking of shipping and supply chain management across various platforms, including customs and warehouse management.

The art of buying goods will only continue its digital trajectory. This might bring challenges to your company, but integrating technologies will streamline everything from dispatch to warehouse.

2. In the Global Supply Chain Crisis, Focus on What You Can Control

Shipping is a bit of a mess these days. International conflicts and supply chain issues are disrupting distribution around the globe. Plus, the ongoing pandemic continues to cause problems. Recently in Hong Kong, purposeful safety protocol neglect has led to suspended cargo flights. 

When a handful of people can disrupt an entire week of shipping, you need to focus on what you can control.

Ensure that you stay on top of your freight’s movement. With ports across the world under dubious reliability, you should be ready to divert your shipments to alternative sites. Make sure your infrastructure is prepared to handle diverted shipments. Being prepared can help cut down on late deliveries and losses. As well, your goods won’t be stuck in a container in the ocean.

You must also continue to invest in digital warehouse and supply chain management. Amazon has weathered most of the supply chain storms because of its basis on technology. From real-time updates to customizable shipping, the megacorp can still provide what its customers want. 

Why not follow in its footsteps? For instance, consider:

• Partnering with third parties like carriers or warehouse management to provide updated parcel information.
• Working with vendors and manufacturers to create forecasted dates of supplies and goods movement.
• Studying Amazon business insights to track resource movement and purchasing trends to stay ahead of disruptions.

Much of the shipping industry remains unsteady, but Amazon’s sheer size and digital integration have allowed it to stay upright. While small or medium shippers can’t utilize the same advantages, they can watch what Amazon and other giant global shippers do. And, they can apply the same tactics to what they can control.

3. Technology and Analytics Are Required in Every Area

Fulfilling the previous two sections of this article is impossible without a sturdy digital base. In today’s day and age, shippers must be integrated with the modern world. 

Though there can always be a learning curve for all tech, the benefits outweigh the temporary cons. Once again, take a look at Amazon and how they command their technology. Modern automation and cargo tracking allow them to anticipate everything. This includes ocean conditions and port closures. They can even monitor the fuel levels of ships while they are underway.

Not every small and medium shipper will have access to Amazon’s tech, but there are several programs well within reach. To start, maximizing your warehouse use begins with tech advancements. Through warehouse management systems, integrated and automated storage systems can transfer items from one area to another. This leads to reductions in human errors and an increase in productivity (and available working hours).

Likewise, don’t forget about your numbers. Specifically, turn to data analysis. Even third-party options can help your business maximize its potential. Shipping, warehouse, and supply chain data analysis allows you to:

• Forecast shipping, spending, and traffic trends at ports and warehouses.
• Monitor vehicle diagnostics, location, and driving patterns.
• Study port times and schedules to optimize shipping windows.
• Track metrics in warehouse capacity and storage to ensure your space is optimized.

Supply chain and shipping analytics will keep growing. As supply chains continue to be affected by the changing world, staying on top of these changes will thus be crucial. Using AI, predictive models, and data analysis programs provide roadmaps to help navigate an unknown future.

Few companies will ever match the size and scope of Amazon. However, the retail and shipping juggernaut is still a prime target for study. As supply chains continue to be disrupted worldwide, turn to what you can control. Optimize your digital platforms, and embrace e-commerce partnership opportunities. Allow data analysis to drive your numbers. The world of tomorrow is digital, and, like Amazon, shipping companies will find success from adapting to these new changes.

This was a guest post by Jessica Larson.

Author Bio

Jessica Larson is a married Midwestern mom and a solopreneur. She creates online courses for students, and she’s started and run several other businesses through the years. Her goals are to support her family while still actually spending time with them, to act as an entrepreneurial role model for her two daughters, and to share what she’s learned through The Solopreneur Journal. 

The post 3 Lessons Cargo Companies Can Learn From Amazon’s Shipping Success appeared first on Universal Cargo.

The pandemic has played havoc on anyone looking to make a living by importing and exporting goods. The question we are left with is just how bad the situation is and how many aspects of international shipping have been affected. So, let’s look at how bad the global shipping crisis truly is and what to do about it in an attempt to shed light on the subject.

The Severity of the Global Shipping Crisis Today

Capacity Challenges

Even if you manage to secure a reliable way to ship your import or export goods, the next challenge in line is the limited capacity of your shipper. Boats, currently considered the most reliable method to transport goods, do not have unlimited cargo holds. This means that, with how tricky organizing shipments is, you are likely to only have a portion of your goods transported every time instead of being able to organize a proper fleet.

Warehouses Overfilling

Amid the global shipping crisis, warehouse workers are suffering. The congestion, unreliable schedules, and a host of other problems all mean that goods languish in warehouses for months, which prevents new goods from having a staging area. This makes organizing your crew for shipping it all out even more difficult. Interestingly, according to the observations of moving and storage experts from getmovedtoday.com, this issue has affected the moving industry too. Goods are spilling over into storage facilities typically used for other needs.

Lack of Shipping Containers

There are two factors making up this issue. One, the production of new shipping containers is stalling. This is because the pandemic has hit the countries that produce most of them the hardest. And secondly, a lot of U.S. import and export companies worked closely with Chinese shippers, while China is currently putting forward a policy of returning their containers to the country quickly. This means that containers that would typically be full of American goods on the way back are now returned empty. This might eventually grow into another funny story from the supply chain industry, but right now, it is the terror of export companies throughout the U.S.

Insane Rates

With people scrambling to find shippers that can work effectively despite the global shipping crisis, prices are going through the roof. A reliable shipping company is currently worth more than words can describe. However, this means that the profits that could be made from imports or exports are taking a severe hit.

Shortage of Products

More frustratingly, even if you have the services of a reliable shipping company, you might not have the required goods. With all the chaos of the pandemic, productivity has been down worldwide. Even previously efficient suppliers are having trouble meeting the demands of local clients. And with import and export being so tricky, they tend to prioritize local business.

Port and Airport Congestion

Ports and airports are often being shut down due to various concerns. Even if they are not outright closed, the flow of goods and people is slowed to a crawl. This means most companies that ship goods internationally flock to the same destinations. And as a result, the severity of all the issues we have previously noted is further exacerbated.

Delays Wreaking Havoc

One of the worst challenges facing anyone trying to engage in the import or export of goods right now is the endless delays. They happen because of the previously mentioned problems with global shipping. However, what is particularly harmful to international import and export companies is the need to stick to the promised schedules. If you have signed a contract to deliver a specific amount of goods by a set date, you would be found in breach of that same contract. And losing a client is the least of what could happen as a consequence.

Potential Solutions

Closer Suppliers

One of the simplest solutions to combat the global shipping crisis is prioritizing closer or, preferably, local suppliers. This would allow you to focus only on the export portion of your business if you’re an exporter or avoid importing over seas and through ports. And, as such, reduce delays. Of course, this may be not only unsustainable but also an invalid way of doing business for companies who have built themselves around the import of goods.

AI Development

It is a prevalent belief that the only way to sort out the chaos amidst the global shipping crisis is to rely on programs. After all, if something could track all shipments worldwide, it could organize them into something manageable. The problem with this solution is, unfortunately, obvious. First, the time and resources needed to develop such sophisticated logistics AI are immense. It would mean not seeing a viable solution for months, if not years. Secondly, it would require a far closer degree of cooperation from former competitors than most would feel comfortable with.

Higher Level of Cooperation

In the end, the only short-term solution available is close cooperation between shipping companies and the various import and export businesses, which is exactly what everyone is currently trying to secure. If you can find a reliable partner, you would have a way to get goods where they need to go, and the shippers would have goods to move. Unfortunately, we have already discussed one of the issues from such a scramble – the spike in shipping costs as everyone tries to offer more money to have their goods moved.  

Final words

Now that you know how bad the global shipping crisis truly is and what to do about it, it should be obvious there is a lack of a quick solution. For the time being, most experts agree that these problems are unsolvable. Yet, things will only get grimmer unless something changes soon.

This was a guest post by Matthew Rayden.

Author Bio:

Mathew Rayden has worked in the shipping industry for over a decade, with a recent shift towards a managerial position in an import/export company. He also loves to write blog posts dealing with various challenges that the industry is going through and that he has personally experienced in his work.

The post How Bad the Global Shipping Crisis Truly Is and What to Do About It appeared first on Universal Cargo.

When considering logistics, we usually tend to think of the bright future. The development of AI and the full automation of supply chains seem like soon-to-be realized concepts that will make shipping easier, faster, and safer. But, it is helpful to take a step back and consider how logistics has changed throughout history. So, we will use this article to explore the evolution of logistics in the last hundred years and grow a little more appreciative of what we now have.

A Brief Evolution of Logistics in the Last Hundred Years

To fully understand the history of logistics, you need to keep in mind that it is closely related to human development. Since ancient Rome’s trade with Egypt and the grain shipping, all throughout Genghis Khan and the Silk Road, shipping has been a major factor in how nations developed. Where logistics was well handled, people prospered, armies advanced, and cultures developed. Therefore, when considering the history of logistics, it is only reasonable to consider its impact on world events and wonder how different they would be if their logistical technologies were more advanced.

The 1920s

We start off our history in the 1920s. The years of great promise and great change. It is important to understand that the diesel engines were only introduced in the mid-1920s and that compared to what’s to come, logistics was still fairly rudimentary. The most notable advancements came in 1925, when companies started using pallets for storage. By using pallets, companies could store goods vertically and make much better use of the available storage space. And while these advancements were quite important, they were only the prelude to the years ahead.

The 1930s

As it is with most technological advancements, military needs tend to outshine all other incentives. Therefore, it shouldn’t come as much of a surprise that the Second World War brought considerable advancements to logistics.

Once the war started, it soon became important to maintain the supply lines for the military. There was a high demand for both personnel transport and goods shipping as fronts started developing all over the world. Airdrops, train shipping, and freight shipping were all necessary to maintain various armies.

By a similar token, it became more important to increase storage safety and storage capacity. Ammunition was particularly difficult to ship, as it was heavy, dangerous, and fragile. This led to innovations in storage containers, packing supplies and defined the process of safe loading, unloading, and consolidation. Most of what we use today in logistics is based heavily on principles developed in WWII. Even today, you can learn new things by reading how various countries faced logistics problems and how crafty they had to be to overcome them.

The 1950s

Once WWII ended, there wasn’t as much need for logistics development. Fortunately, the lack of demand didn’t instigate the lack of development. As shipping companies strained away from military purposes, they once again turned to trade. This led to one of the key historical moments in logistics history: the invention of shipping containers in 1950. In the modern era of logistics, we pretty much solely rely on shipping containers. So much so that you’ll have a hard time considering logistics without depending on them. And while it would take a while before we standardized shipping containers, it is important to note their inception.

The 1960s

During the 1960s, we saw a significant increase in trucking. The increase in safety, as well as standardization of materials, made logistics far easier and predictable. This allowed shipping companies to transport time-sensitive materials and make drop-offs in a much more reliable manner.

But, what truly helped shape modern logistics was the IBM advancements in computer technology. Before, all the logistics data was written and shared on paper. But, IBM brought computerization to logistics data. As you can imagine, this had a tremendous effect, as it showed a glimpse of what the future of logistics will be like.

The 1970s

In 1975, we saw the first real-time management system for warehouses. Through it, logistics managers could track orders, monitor inventory, and oversee distribution. This, again, is a thing that we take for granted nowadays but was a huge advancement in its time. The 1970s also brought us barcodes, which made packet identification much easier.

The 1980s

The 1980s were a period in logistics where everything came into place. While there were no “new things” to make note of, what was already present was made exponentially better. Computer technology, tracking capabilities, logistics integration, communication technology, shipping technology… All of these became incrementally better and better. During the 1980s, companies introduced ERP systems, furthermore helping overall logistics.

The 1990s

So far, logistics was usually handled by third-party companies. But, as technology advanced, it became easier and easier to make logistics an integral part of your company. We asked the moving crew at simplemoving.us, who told us they, like many relocation businesses, cover their own logistics needs. These internal logistics became widespread in the 1990s, as more and more companies introduced their logistics teams.

From 2000 to Present Day

We can safely say that the story of logistics between 2000 and the present day is known as modern logistics. All the systems we have today were conceived in the early stages of the 21st century. Of course, in their conception, these systems were far more rudimentary than what we use today. Nevertheless, they were conceived during this period.

With the advancement of AI and machine learning, there is no telling what the future will be like for logistics. Even with this quick view of the evolution of logistics in the last hundred years, you can easily see how far we’ve come since the 1920s. So, it is safe to assume that the next 100 years have some surprises in store. Space shipping, fully automated vessels*, interplanetary transport – all of these sound like science fiction now, but, in the 1920s, so did the idea of computers in logistics.

*[Note from editor: It’s not all science fiction: automated container ships have already been created and are being developed as well as automated trucks and port automation, though dockworker unions in the U.S. fight against port automation here.]

This was a guest post by Gregory Steele.

Author Bio:

Gregory Steele works as a full-time warehouse manager and a part-time writer for various publications. His fields of interest include logistics and sustainability, as he strives to incorporate as many eco-friendly practices into his warehouse as possible. In his free time, Gregory likes to go hiking and play racquetball with his friends.

The post Evolution of Logistics in the Last Hundred Years appeared first on Universal Cargo.

When reading up about shipping, we tend to focus on the more industrial aspects of it. And, while it is essential to learn about logistics advancements and proper shipping procedures, we shouldn’t forget that shipping has its own set of funny stories and mysterious occurrences. So, to help highlight this, we will use this article to cover the six mysterious ship disappearances that have baffled us to this day.

Mysterious Ship Disappearances

The following ship disappearance offers no final explanation of what happened. In modern times too, disaster can happen. But it is relatively easy to analyze them and see what the error was. This isn’t the case with the mysteries that we are going to cover. On the one hand, this may leave us dissatisfied, as there is no conclusion or a safety lesson to learn. But, on the other hand, it leaves a ton of room for speculation and imagination as to what actually happened on these voyages.

#1 HMS Terror and Erebus, The Franklin Expedition

Let’s start off our list with a true story of conquest, courage, and ultimate downfall. HMS Terror and Erebus were English ships outfitted for the 1845 Franklin Expedition. Sir John Franklin, an experienced arctic explorer and navy officer, was to complete a crossing of the Northwest Passage and gather data about the Canadian Arctic while doing so. At the time, this expedition was seen as the crown jewel of the British Crown. The idea was for it to showcase the technological dominance of the British empire and the unyielding spirit of the British people. The builders outfitted the ships with steam engines to make the sale of icy waters easier. On 19 May 1845, the ships sailed from Greenhithe, Kent. And during August 1845, they were last seen entering Baffin Bay.

The disappearance of HMS Terror and Erebus has been fuel for fiction for ages to come. While we know that the ships became icebound fairly early in their expedition, there wasn’t much to go on as to what happened to the crew. While there were massive search efforts between 1848 and 1866, it was only on 8 September 2014 that explorers were able to find the wreckages.

#2 Andrea Gail and the Perfect Storm

It was September 1991. Andrea Gail, a 72-foot-long-liner, went out for the last fishing session (look into this site to know more about the necessary gears to be carried for a fishing session) of the season. Its crew of six men was all experienced fishermen that had ample knowledge of the local waters. But, it soon became evident that no experience or skill is enough once the perfect storm strikes. The combination of weather factors – creating 100-foot waves, strong winds, and impossible odds – soon destroyed Andrea Gail. Neither the ship nor the crew was ever found, even though there were numerous search and rescue operations.

#3 The USS Porpoise

The USS Porpoise was a seasoned brig that was instrumental in various explorations. In October 1837, the Government even used USS Porpoise to hunt pirates. But alas, all that experience with pirate hunting and expeditions wasn’t enough to save it. In 1854, 69 men sailed USS Porpoise to carry out a survey of the South Sea Islands. During the sail, somewhere between China and Taiwan, the ship went into a deep fog. After that, no one saw it again. The main suspicion is that a local typhoon wrecked the vessel into the coast. But, again, we have no conclusive idea.

#4 HMS Sappho

The primary use of HMS Sappho was to fight the slave trade off the coast of West Africa. During 20 years of service, the crew managed to stave off quite a few slave ships. But, unfortunately, mistakes happened. In 1857, the crew of HMS Sappho accidentally boarded an American ship. Seeing that this caused a diplomatic crisis, the British Government ordered the ship to sail to Australia. While Sappho did reach Cape Town without much trouble, it soon disappeared. Neither the vessel nor the 147 crew members were found.

#5 The Merchant Royal

Captain John Limbrey commanded and sailed the Merchant Royal for the British Crown. In September 1641, captain John sailed the ship into a most expensive shipwreck. Namely, while returning from Mexico, Merchant Royal carried 100,000 pounds of gold, 400 bars of silver, and an astonishing amount of jewels. Bad weather combined with a malfunction of ship pumps caused the Merchant Royal to sink quickly. Fortunately, the captain and the crew survived. But the valuable cargo was lost and has remained lost to this day.

#6 USS Cyclops

When it comes to ships that managed to disappear, we cannot help but mention USS Cyclops. This was a steel-hulled fuel ship that the US Navy used for carrying coal and other supplies. On its final journey in 1918, 300 US sailors sailed Cyclops from Rio de Janeiro. Their cargo was 10,800 tons of manganese. In the beginning, the sail went smoothly. But, in March 1918, they sailed into the Bermuda Triangle. The ship then mysteriously vanished. There were no distress calls or reports of bad weather. As you can imagine, countless theories surfaced as to why this happened. But, to do this day, neither the crew nor the ship was found.

Final Thoughts

There are many reasons why most mysterious ship disappearances happened during the 19th and 20th centuries. During these times, ships were strong enough to support long-distance travel, but not well equipped enough to do so safely. Today we can easily learn how to prepare the vessels for travel or research how to properly pack items from nycministorage.com. But, in those days, sea travel was still in development. Remember, most of the sea world was still uncharted in the 19th century. This is why the journeys of these argonauts were so astonishing.

Unfortunately, even with modern technologies, shipping can still be quite dangerous. Companies work hard to avoid supply chain disasters and ensure that both the cargo and the crew remain as safe as possible. All in all, it is safe to say that mysterious ship disappearances of full-fledged shipping vessels are much more unlikely to happen.

This was a guest post by Jason Godfrey. 

Author Bio

Jason Godfrey is a freelance writer who lives to write about fun and peculiar incidents in various industries. And since he used to work in the shipping industry, these topics are particularly appealing to him. In his free time, Jason loves to read, and he is a big cinephile.

The post 6 Mysterious Ship Disappearances appeared first on Universal Cargo.

The import/export business has always been a lucrative affair. However, where there is money to be had, there are mistakes to be made. It’s a sort of inherent dichotomy deeply embedded in the very nature of economics that finds its way to most business endeavors too.

For every success story, there is a slew of failed ones to be told.

Like any other field, international trade is fraught with risks, and circumventing them is crucial. So, where is that mystical line between failure and success? There is no magical answer; it comes down to hard work, experience, and that ever-fickle lady luck. Since we cannot influence luck, we can set our sights on success and failure tips born from experience in the import and export business to better understand how to improve our chances of avoiding costly mistakes and making it big with our businesses.

1. Make Sure You’re Insured

This is one I had first-hand experience with. Fresh out of college, all wide-eyed and enthusiastic, I started working at a maritime-river agency. I always advised my clients to get their cargo insured. I was always confused as to why so many would choose to forego this option. Still, when talking to them about potential demurrage costs and bunker adjustment rates, I could somewhat understand why insurance was not at the top of their priority list.

Furthermore, it seems like a cheat code. By cutting this item from the checklist, you cut back on costs too. Here’s the kicker, it works! Well, until it doesn’t. From damaged cargo to key clients not making timely payments causing liquidity issues, there are plenty of reasons you need cargo insurance, so this is not an area you want to skimp on. 

2. Go Small to Make It Big

With globalization being a thing, it seems almost paradoxical to say that looking for niche markets could be the way to go. Sometimes, it’s not about being the best but making the best choice. When starting out, it’s easy to look at the most successful companies and attempt to copy them. What about finding a demand that nobody meets? There are a lot of exports that you would not believe are viable products that have brought a lot of success to those who thought of them first. If you do your homework and are among the first to import or export an up-and-coming product, this will give you a substantial head start.

3. In the Import and Export Business Patents are More Important Than you may Think

Examples abound of companies that had good ideas but forgot to protect them and paid the price. Intellectual property needs to be kept safe, and the only way to do this is through trademark registrations and patents. If you don’t do this, you leave the floodgates open. Competitors will offer cheap copies of your product and squeeze you out of your own game.

4. Never Underestimate Customer Support

We are all people. Yes, I am stating the obvious, but have you thought about what it means. It entails trust, support, and comfort. It is a dog eat dog world out there, making a trusting partnership all the more valuable. So, longtime customers need nurturing and you can work with TMC’s receptionist staff who provides valuable support for your firm. Working with countries whose time zones do not ideally align with your own in the States comes with the territory. Imagine a problem emerges. Imagine you assemble a specialist team at 3 A.M., your local time, to help them solve the issue during their regular working hours. Not a bad way to show them they should keep doing business with you for many more years to come.

5. You are Only as Good as the People you Work With

As we all become more interconnected, it becomes more apparent we are all part of a chain. You can be the best, but you are setting yourself up for failure if there are weak links. Let’s look at an example most of us can relate to. Moving house. We can choose a random moving company, or we can tap into a reliable database. If you have ever browsed through bestmovers.nyc, you know what I’m talking about. Such an approach can help us choose the best professional movers for us. Likewise, in the import/export game, wisely choosing suppliers, distributors, and partners is key to strengthening the whole proverbial chain and, by extension, your own position.

6. The Success or Failure of an Import and Export Business Depends on You

At the end of the day, it is that simple. It depends on how seriously you approach the subject, how meticulously you research the markets and products, and how much work you are willing to put in. There are many success and failure stories from the import and export business. We hope yours will fall into the former category rather than the latter. You don’t necessarily need to know all the ins and outs of international shipping or hire in-house experts to handle that aspect of business; you can put research into finding an experienced freight forwarder or 3PL company to help your business through its shipping needs.

This was a guest post by Lance Peterson.

Author Bio:

Lance Peterson is a content writer who is passionate about poetry, music, and the environment. Having worked in the freight forwarding industry for a good portion of his life, he particularly enjoys writing articles that pertain to the shipping industry in any shape or form.

The post 6 Tips for Success Not Failure from the Import and Export Business appeared first on Universal Cargo.

Classically, one of the biggest advantages ocean shipping has versus air freight is being less expensive. But with ocean freight rates recently skyrocketing to more than 500% higher prices than they were the year before (when freight rates were already rising high), this is the perfect moment to introduce…

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Universal Cargo is excited to help you with your air freight.

The post Universal Cargo Launches Air Freight Division appeared first on Universal Cargo.

Global supply chains and disruptions have gone hand-in-hand for the past few years, and many companies are hoping 2022 will be different. The best way to protect your operations is to employ supply chain optimization techniques focused on security and reliability. Let’s look at five practice improvements that are easy to achieve and have significant potential to improve your year quickly.

1. Reinforce Relationships with Key Suppliers

Supply chain optimization starts with key relationships. Work to improve your communication channels between your partners, helping them collaborate and ensuring your team always delivers the most up-to-date information. For suppliers, look for ways to help those companies while communicating early about your needs or changes.

Foster consistent, two-way communication to encourage them to share updates with you or take proactive steps to protect the relationship. Have leadership and reps work to create a consistent method for resolving problems and discussing the goals of every stakeholder. One foundational element is sharing your key performance indicators (KPIs). Tell suppliers how you’re judging their capabilities and clearly define what “success” is for each KPI. Encourage them to share what KPIs are used to judge your company and partnership.

2. Scale Up Space and Inventory

Many businesses that pushed lean and just-in-time supply chains had significant struggles in 2020 and 2021. This puts companies at risk of stockouts, long resupply delays, and a backlog of backorders that could be canceled and harm revenue potential. Optimize your supply chain by looking for ways to scale your inventory.

The reason to start planning this in early 2022 is that you’ll need to increase physical inventory orders and have space available immediately whenever containers make it through ports and to your locations. Manufacturers, wholesalers, and other suppliers may need greater lead times to increase your supply. Your warehouse or ones from a 3PL must have available space ready to store your goods safely and ensure proper inventory counts whenever the influx arrives. Further improve your spending by seeking out cubic storage pricing structures that allow you to pay only for the space you use and don’t require optimized pallet stacking or similar concerns.

3. Diversify Core Requirements

Peak season continues to shine a light on the need to diversify. Not only are many containers sitting outside of ports for weeks, but carriers are looking at capacity crunches, and not every physical retail location is open for sales. There are a myriad of potential delays for your supply chain, and having multiple outlets or options still looks to be the best risk mitigation strategy.

Businesses can optimize their supply chains by targeting potential supplier-side delays. Look for potential choke points or single points of failure and adapt around them. Seek out multiple solutions when possible. For example, try and source raw materials or components not only from different partners but ones that would inbound to you via different routes. Start collaborating with multiple carriers, especially regional partners, early so that you can have access to increased capacity on their networks during next year’s peak season.

Ensure your products have multiple distribution points to end consumers. This can mean multiple fulfillment and warehouse locations as well as selling across major online marketplaces and physical retailers. Consider mixing fulfillment here as well, handing orders over to multiple 3PLs or directly to some marketplaces.

4. Improve Documentation to Support Visibility

Documentation is likely the least sexy part of your supply chain. It rarely gets a significant focus, but it should in 2022. The core reasoning is that you want everything to go as smoothly as possible during inbound transit. You can achieve this by centralizing and managing documents, including purchase orders, bills of lading, inspection reports, product- or category-specific documents, and insurance materials.

Create or adopt a system that puts all these documents in one location and allows your business units and partners to see, use, and share what they need. Many existing tools will have permission-based settings so accounts only access what’s relevant to them.

Documentation management can help avoid delays, track goods, speed up problem resolution, and more. When you make this information accessible up and down your supply chain, you become a trusted and supportive partner and are better able to hold companies to their service level agreements.

5. Test Risk Mitigation Plans

Most of the advice shared in 2021 focused on managing and mitigating supply chain risks. Companies were hoping to avoid many of the surprising disruptions brought by the early covid outbreak. You have a better handle on the major risks to your supply chain and may have put together plans to address them.

In 2022, the aim is to assess these mitigation strategies to see if they perform. Split orders among carrier options to determine which performs best or if there are unique challenges for a carrier. Fill test orders from every location to see if you can deliver on service speeds if a single fulfillment warehouse goes down. Run on-site drills with power outages, Internet disruptions, and reduced dock doors. Test stockout features on your website, automated emails for when products come back in stock, and customer messages around supply chain delays.

Don’t let your supply chain optimization efforts exist just as theoretical. Push them to see how they perform in real-world situations. Ensure that the benefits promised can be delivered and that you can count on new partners or practices. No one knows what will happen next, so prep by being proactive toward as many threats as possible.

This was a guest post by Jake Rheude.

Author Bio

Jake Rheude is the Director of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others. 

The post 5 Supply Chain Optimization Practices to Adopt in 2022 appeared first on Universal Cargo.

Jared is Universal Cargo’s Content Manager, who has written more than a thousand blog articles and posts for Universal Cargo over the last ten years, and he brings the knowledge he’s gained over that time to the show.

On Ships Gonna Happen, Jared discusses what’s going on at the ports from congestion and supply chain disruption, which is all over the news lately, to the causes of that congestion, the dockworker unions, carrier alliances, port terminal ownership, and more.

At Universal Cargo, we recommend subscribing to the Ships Gonna Happen Podcast. The guys on the show bring both knowledge and fun to the episodes, combining to create “transportainment” as Tony B. dubbed it in Saturday’s episode.

Here’s a link to the Ships Gonna Happen Podcast episode featuring the interview with Jared on SoundCloud.

The post Universal Cargo Content Manager Talks Supply Chain on Ships Gonna Happen Podcast appeared first on Universal Cargo.

The supply chain industry is typically a rather serious topic. Millions and millions of people count on it not only for luxury goods but quite often for essentials as well. This means that our entire society would suffer severe impact if any serious problems developed in it. Which, unfortunately, we can see quite starkly given the effects the pandemic has had and will have on the supply chain industry. However, this does not mean we need always be grim and serious about every little problem that pops up. While costly and certainly not fun in the moment, some accidents can be pretty funny in retrospect. So, in the name of that and loosening up with all the disasters we have recently suffered, let us take a look at some of the funny stories from the supply chain industry!

Supply Chain Meltdown

Now, yes, the title of this story might bring up bad memories of the most significant supply chain disasters, but don’t worry! This is a story from the chocolate industry. Rumor has it that Hershey suffered quite an embarrassing episode back when it was still building its brand. Namely, they forgot to account for the weather. They had just signed a large shipment and, of course, were eager to deliver it as soon as possible. Unfortunately, the sweltering summer heat surprised them. By the time the delivery was made, the products had thoroughly melted and become useless. Not only did the company have plenty of cleaning to do for their cargo transport, but they also learned a valuable lesson about preserving your cargo during transit. This certainly marks it as one of the most memorable funny stories from the supply chain industry.

Target Canada Targeted by Barbie

If there ever was a lesson about the necessity of learning how to efficiently declutter your warehouse and keep it neat, this is it. Back in 2015, many people were surprised when Target decided to shut down their attempt to get a hold of the Canadian market. What a lot of people do not know, however, is that the reason for that is the wrath of Barbie dolls and their cars. The company had accidentally ramped up the number of pink, Barbie-branded SUV toys to such heights they started overflowing their warehouses. This, in turn, entirely tanked their supply chain, making it unusable, teaching Target to fear the wrath of Barbie in the process!

Boats or Bananas

Another of the funny stories from the supply chain industry came about due to a linguistic error. “Banana boats,” as they were nicknamed at the time before air transport was a thing, used to serve as the leading suppliers of the tasty fruit. They were known for their speed and ability to deliver their cargo without spoiling. A slower supplier would not be able to make the journey without spoilage. This earned them their moniker, but it also served to produce a rather significant kerfuffle. When an enterprising business owner, looking to expand his fleet, contacted his employees and ordered them to get him more boats, there was a misunderstanding. Imagine his surprise when, instead of ten brand new boats, he found ten bananas waiting for him.

The Boeing Bang

Every business owner worth their salt is constantly looking for ways to optimize the supply chain to generate profit. So, when Boeing announced the launch of their 787 line and promised to revolutionize the industry, people jumped at the chance. The only issue was, well, Boeing somewhat underestimated the interest they would generate. And, instead of in 2008, the planes launched with a slight delay. You know, just a small one. Just… three years long. To say that the business owners who had already started making plans were upset would be an understatement, but it is pretty amusing to imagine the reaction when the “little” delay was announced.

Fed Up

The rivalry between USPS and FedEx is not exactly a new thing. It has, after all, been going on for a while. And it was especially bad back in the 90s when mail was a much more common way to quickly get important items or documents to someone. In comes a company charged with developing a better solution for bar code data collection systems, hired by the United States Postal Service. The work was done. The proposal was drafted. Now came the time to get it delivered, and with the deadline approaching, it needed to be delivered quickly. Option A: go to the nearest post office and send it. Option B: approach the USPS’s bitter rival and have them deliver the mail instead. Somehow, the company’s representative decided FedEx was the better solution. USPS was not amused to receive the proposal through FedEx, and the contract fell through. Definitely one of the more memorable funny stories from the supply chain industry, though.

The Drone Attempt

The inception of drone delivery was not what most people would consider exceptionally organized. Oh, it is undoubtedly useful now with supply chain chaos and sky-high freight rates! But it was a bit less reliable when the concept was first being put into action. Occasionally, opening your package was much like opening a loot crate in a video game. You never knew whether or not you would get quite what you ordered. Now, getting your order is important. But there is something to be said about expecting a book and receiving gardening equipment, and I speak from personal experience. A sign from the universe to get out and be more active, perhaps?

Final Comment

I hope that my funny stories from the supply chain industry have managed to lend at least a bit of levity to this trying time. What we are facing is not easy, but that does not mean we should not take the time to relax! I urge you to remember that no one can do business properly if they do not care for themselves. So, take a break! And find something fun to do, at least for a little while.

This was a guest post by Frank Bale.

Author Bio

Frank Bale is an experienced blogger dealing primarily with issues and news concerning the supply chain industry. He has over seven years of experience in the industry and has heard quite a few interesting stories and anecdotes. He likes sharing his knowledge and expertise, be the topic serious or lighthearted. 

The post Funny Stories from the Supply Chain Industry appeared first on Universal Cargo.

If you think your supply chain has been optimized as best as it can because you’ve made sure to get the best raw materials and send out your products as quickly and efficiently as possible, think again. The end-to-end management for supply chains doesn’t end there. Even within the suppliers you already have there will be more intricacies. You will need to make sure to look beyond – to your suppliers’ suppliers, for instance.

Otherwise, this can cause something like a domino effect. Think about it: If your suppliers’ suppliers don’t have their raw materials, your suppliers can’t send you anything. It delays the entire line until they finally send out the materials your suppliers need to send to you, causing delays on your end, as you are unable to give your customers what they want on time. The alternative for this is to pay for a faster logistics option, but that would mean increased expenses on your end.

So, this begs the question, how can you optimize your supply chain?

1. Learn More About Who Supplies Your Suppliers

This more or less depends on the type of business you hold. If you deal with suppliers who get raw materials directly from the source, you won’t have to worry much about this. But for most businesses, their suppliers aren’t at the end of the chain. It’s more likely that your suppliers are also like a middleman as they deliver supplies to you from their other suppliers, who themselves get raw materials from someone else.

Your suppliers might make some slight or significant change in the materials they receive before delivering it to you, but one thing remains constant: they are not the end of the line because it is their suppliers who dictate how fast they can deliver to you. It all trickles down to how fast production goes on your end.

Naturally, if you want to make sure things go smoothly, you shouldn’t just forget about your suppliers’ suppliers until something goes wrong with the deliveries, causing a domino effect of disasters and backlogs on your end.

This means doing ample research on their business and seeing how smoothly they’re running. Have they had delivery issues in the past? How much do they currently cost? Maybe you’ll be able to negotiate a better deal for your own suppliers.

You also have the option of backing out entirely and having your suppliers go for a different provider if their current one is unsatisfactory to your business. These things are easy to miss when you’re only focused on the businesses you’re close to, but don’t forget that your business is one of many integral parts of the supply chain, and it is essential that each part runs as smooth as possible.

2. Mitigate Supply Chain risks

The Covid-19 pandemic has been in full swing for nearly two years now, and it doesn’t seem like it’s going to be letting up anytime soon. This has caused drastic changes and disasters for many industries all over the world, and supply chains all over the world are one of those hit the hardest by it. Who could forget how convenience stores and grocery shops were sold out of hand sanitizer and alcohol, or how people were panic-buying entire toilet paper rolls? But it’s not just these things. Everything from meat to appliances to furniture has had considerable difficulties in going where they need to go thanks to the restrictions placed in many areas.

It’s hard to predict the scale of what a pandemic can do, but that doesn’t mean you shouldn’t try to prepare. And even then, these aren’t the only things you would be worrying about. Port terminal closures are another thing, and they have been considerably prevalent today thanks to Covid-19. But then there are tariffs, trade wars, or even something like bad weather delaying deliveries. There are a lot of things that can go wrong, and they can easily be a disaster for any unprepared business, especially if more than one disruptive event happens at the same time.

The best way to combat these risks is to simply prepare and forecast what may possibly go wrong and prepare contingency plans, such as the usage of reliable third-party logistics. You would also need to take into account the growing market, so not just the risks of things going wrong, but also how to keep up with the current climate. As an example, these days, there is a movement of certain manual labor being replaced in certain areas where it isn’t as needed, such as manual inventory management. Instead, you can use an RF gun scanner for your warehouses that reduces the manual work and costs involved – all the while saving you time and labor in the process.

It would also help if you were to look at ways your business can be more efficient. Are there any bottlenecks or problems that you may currently have? If not now, what about the future? Where are they at risk of happening? If demand increases, will your business be able to keep up?

3. Demand Plan

Every business knows that holidays are where sales pick up. Black Friday, Christmas season, Cyber Monday… These are all common and expected holidays that should be planned and accounted for. However, someone with a good business sight would look beyond just these dates. Are there any other days or holidays in a year where your business has seen quite an increase in sales? Or maybe there has been a holiday where a big sale pulled in a good number of customers?

It pays to keep track of and use historical data that you may have to see when it might be a good idea to run promotions or flash sales, especially during the days where most customers would want it from you. Do it well, and you can properly predict and even create a roadmap for ordering, receiving, and shipping your products in a timely and cost-efficient manner.

This was a guest post by Emma Pogg.

Author Bio

Emma Pogg is a supply chain expert. She has the uncanny ability to work with clients, vendors, and trade partners to help them meet their needs. Emma is passionate about finding efficiencies in the supply chain process through her knowledge of how materials are used and distributed across an organization.

The post 3 Ways to Optimize Your Supply Chain to Generate Profit appeared first on Universal Cargo.

A good supply chain is predictably critical. Without goods, no one can grow and thrive. This, of course, causes imports and exports to grow in importance in turn. Fresh goods, goods not available in the local market, are all the more attractive and lucrative. However, as with all ventures, there is a risk – failure of the supply chain leads to massive losses of time, money, and resources. So, how does this happen? What are the biggest supply chain disasters that could strike your business and set you back?

Here are seven such disasters and what you can do to be ready for them or avoid them altogether.

1. No Alternative Suppliers

Quite often, supply chain disasters do not happen because of a lack of transportation. Some retailers even get their own ships nowadays. So, while failing to secure space on ships does happen, businesses geared towards export and import are less likely to fall behind due to this. However, a sudden lack of supplies causes the biggest disasters. Such a condition then leads to failed contracts, massive losses, and potential bankruptcy. And yet, some businesses still fail to secure enough backup suppliers!

So, the main thing to take away from this is to always have something to fall back on. The ideal solution is to find suppliers local to the point of take-off, where your shipping routes begin. If you can secure their assurance that they can bail you out of a bad spot, it is worth paying at a premium if the day you have to comes.

2. Long Lead Times

This is one of the supply chain disasters which are harder to tackle and more insidious. A business can be slowly whittled down into the ground by delays, minor problems, and getting smacked by fines for those same delays. The leading causes of this can be an insistence on cheaper producers when getting goods from them is a long and arduous process, a reluctance to spend money on better modes of transport, or even international issues cropping up if one is unlucky. A good example is the recent COVID case shutting down a major Chinese port terminal.

However, what we can learn from this is to always have an alternative way to ship your goods out. Just like our previous entry, backup options are vital, even if they are more expensive.

3. Bad Forecasts

This particular disaster is difficult to guard against. If you make a bad forecast and invest all of your money into importing or exporting goods you believe will be popular only to find they are unwanted, it can cost you your entire fortune. The good news is, this is relatively easy to learn from and circumvent. The primary cause of this disaster is trusting unverified and sketchy information.

One should always perform as much research as possible instead of jumping at potential opportunities.

4. Reckless Risk Taking

The last entry neatly ties into this one! Reckless risk-taking has caused more disasters in supply chains than anyone cares to admit. And examples stretch all the way back to the first import and export businesses to ever exist.

What we can do to learn from this is follow the following guidelines: Never take on more orders than you are sure you can handle. Never trust a supplier who makes unrealistic promises of production. Always give yourself a little extra time for your cargo to arrive instead of risking the attempt of staying competitive by promising extremely short delivery times. And never, ever, stake most of your fortune and business on large amounts of cargo you are desperately counting on to earn it all back.

5. Cutting Costs

Another disaster to protect yourself from! Where is the line between frugality and refusing to spend enough money to keep your business running correctly? Unfortunately, it is not quite an easy question to answer. Many companies invited ruin on themselves by not spending enough money to ensure the quality and safety of their shipments. And a lot more will be ruined by the same in the future.

The best way to learn from this is to set a baseline for your product’s quality and transportation and never allow yourself to slip under it, no matter the circumstances.

6. Subpar Storage Facilities

When discussing the biggest supply chain disasters and what we can learn from them, we must mention poorly handled storage. It is a well-known enough story, yet one that few choose to learn from! A company or a business buys merchandise. They get it to storage. The storage is not up to par for their needs. The inventory gets spoiled, ruined entirely. Now, the business has paid for the supplies, but they are failing to deliver them, making this a double expense caused by negligence.

This is why you need to make sure to have good, climate-controlled storage on your chosen mode of transport and your warehouses! Otherwise, your export/import business stands to lose too much. You should also always approach signing storage rental agreements well in advance of the date when you need them, so you can handle the paperwork with ease. If you allow yourself enough time, you will eliminate or at least reduce the chances of things going awry.

7. Choosing the Wrong Transport Methods

Sometimes, it might seem cheaper to rely on boats. However, with the current need to protect your supply chain from likely ILWU port disruption, the costs could surge, something shippers have been seeing plenty of over the last year. This is just one example of how disasters can happen when you do not carefully consider your transport mode! And that is completely disregarding issues COVID can cause that we’ve already mentioned.

Make sure to weigh the safety, reliability, and cost in equal measure. Do not be afraid to pay more if the new, better way to export or import your goods can speed up the process and make it possible for you to make more trips in the same period. It would only boost your earnings in the long run.

Final Word

This marks the ending of the list of biggest supply chain disasters and what we can learn from them. As long as you keep in mind the facts that you should never let yourself be without a backup plan, that under-spending is as bad as overspending, and that you should keep innovating your transportation methods, you should avoid suffering major disaster!

This was a guest post by Timothy Barton.

Author Bio:

Timothy Barton is an experienced blogger, travel enthusiast, and beginner entrepreneur. He likes to work on pieces that deal with business and the import and export of goods. He hopes his years of experience in research have prepared him for the tasks ahead.

The post 7 Biggest Supply Chain Disasters and What Can We Learn From Them appeared first on Universal Cargo.

This is a guest post by Timothy Clark.

When you think about a country’s top export, what comes to your mind? It probably creates and connects mental images of Italy and pasta, Belgium and chocolates, China and silk, Brazil and coffee beans, or Ireland and ale. But did you know that there’s a long list, and a rather staggering one, of some other products you’d probably never suspect to be global merchandise?

Today, we take a look at some of the world’s most bizarre exports – surprising products that countries send abroad. On this list, you can expect to find goods like wolf urine, bovine semen, binoculars, camel steaks, and cocoons – you know, basic life necessities.

Australia’s Alternative to Pork and Beef

Move over, beef. Australia brings camel steak to dinner tables across the world. Camel meat is promoted as not only a healthier, low cholesterol alternative to beef but also one that is environmentally friendly. Concerning the latter, camels are considered a pest in Australia. More than a million of them were left to roam Australia’s vast interior. The animals are breeding at a rate so high that it doubles the Australian population every nine years and negatively impacts the environment. This led to the marksmen culling hundreds of thousands of them.

But one country’s trash is another country’s treasure. The news of camel culls reached the Middle East and African countries. This then influenced their demand for lean camel meat and fat-rich milk. Many of these countries consider camel meat a delicacy, so the growth opportunities were enormous. Thus, the region’s meat exporters called on the government to invest money formerly directed for culling in subsidizing freight shipping costs.

What Do Binoculars and Bovine Semen Have in Common?

Sounds like one of those fun brain teasers, doesn’t it? I promise you – it’s not. These items score the Great White North millions of dollars in exports. Canada is a well-known exporter of crude oil, gold, cars, automotive parts and accessories, sawn wood, etc. Yet there are some other, a bit quirkier, product items that leave the country and land for other nations.

For instance, binoculars may be regarded as archaic items. Still, Bahrain readily splashes out an amazing $2.9 million on these annually. What is more, Canada and the US dominate the international bull sperm market. Iran is one of the many countries that are hankering to get their hands on these countries’ bull DNA. The country spends an incredible $976,000 per year. Why, you might ask? American cows have some of the best milk production rates across the globe. Namely, they produce more than 21,000 pounds of milk per cow in the year 2012 alone.

Indonesia Hops to it with Frog Legs

Another of the world’s strangest exports is frog legs for consumption as food. Indonesia is the largest exporter of the stuff. And let me tell you, the French do love their frog legs. Statistics say that they are ready to pay for the 4,000 tons a year. So, the limbs of somewhere between eighty and two hundred million frogs per year are caught in Indonesian forests, are then shipped via air freight to Europe to eventually end up on French plates. Conservationists fear, however, that the insatiable demand for frogs’ legs could seriously impair local frog populations in Asia. For this reason, they are calling for the EU to limit frog imports. But this has not stopped France from being the leading frogs’ legs importer.

Silkworm Cocoons

Silkworm cocoons are a huge moneymaker for Turkey. The tiny cocoons of the silkworm are used for beauty treatments as well as producing silk and jewelry.

And Turkey is the largest supplier, exporting an estimated $532 thousand worth of these tiny cocoons in 2017, mainly to China, the biggest exporter of raw silk.

Wolf Urine, Anyone?

Many researchers expressed the past decade’s deer population increase in Japan is out of control, wreaking havoc with transport systems and farmland. By 2013, the number of accidents caused by this ungulate had more than doubled in the northernmost of Japan’s four main islands, Hokkaido. As a result, Japan’s transport officials decided to take drastic action.

The wolf urine turned out to be a powerful communicator to some animals, including ungulates. If the scent of an apex predator at the top of the Northern Hemisphere food chain is around, these animals want to be as far away as possible. It marks its territory. For this reason, the US began exporting the urine to Japan. The country then used it to spray near the island’s highways and transportation routes. Talking about the world’s most bizarre exports, right?

June 13^th Is Hawksbills’ Day

The hawksbill sea turtles are truly remarkable creatures. But their population has declined more than 80% during the last century, chiefly due to the international trade in their stunning shell for ornamental purposes. The carapace (shell) of the hawksbills is used for arts and crafts, primarily for the making of combs, brushes, jewelry, and inlay in decorative pieces of furniture and others. The species was on the verge of extinction. Today, however, there is a ban on the tortoiseshell trade.

Take New Zealand, for instance. In former times, it was one of the biggest importers of tortoiseshells. Nowadays, travelers who own any tortoise or sea turtle shell jewelry and ornaments or business companies looking to export these items will need a special permit to bring them inside the country’s borders. Also, if you’re looking to relocate to this country trouble-free, there are two things you will need to do: find a good international moving company [though Universal Cargo focuses on helping businesses import or export goods, even bizarre ones] and familiarize yourself with your new country’s laws.

Kazakhstan Exports Radioactive Chemicals

The final place on our list of the world’s most bizarre exports belongs to Kazakhstan.  Kazakhstan is the world’s largest exporter of Radioactive Chemicals, and they’re right next to petroleum and refined copper. According to the OEC, Kazakhstan exported an estimated $1.71B worth of these potent materials overseas. This made them one of the most exported products in Kazakhstan that same year. Some of the main destinations include China ($504M), Russia ($427M), Canada ($272M), South Korea ($160M), and France ($157M).

This was a guest post by Timothy Clark.

Author Bio

Timothy Clark has been working as a freelance writer from 2007 to 2015, when he finally got into travel journalism. This was his dream job as he not only got to travel around the globe, but was also paid to do it. Years of learning about the world, meeting beautiful people, exploring different cultures and histories, and trying different cuisines got him interested in the shipping industry as one of the oldest industries in the world.

The post The World’s Most Bizarre Exports appeared first on Universal Cargo.

This is a guest post by Marcus Dokken.

International trade was, and still is, one of the main drivers of economic expansion. We might even say that it’s directly responsible for shaping the world we live in. That makes you, the import/export business owner, an invaluable cog in a larger machine. And, this is precisely why it’s so crucial for your business to thrive.

However, it became hard to keep your head above water with all the recent international shipping disruptions. Hard – but far from impossible. With these money-saving tips for your import/export business, you can remedy the situation and endure the crisis.

Tip #1 – Stay informed

A wealth of information is key to any successful business venture. It is probably the most noticeable in the import/export business.

First, the market changes. It’s in constant motion; it fluctuates. What was profitable yesterday can become a money sink tomorrow, and vice versa. Therefore, knowing what’s currently going on will help you find favorable deals and cut unnecessary expenses.

And, secondly, as an import/export business, you work with numerous countries and governments. Each one has its own set of rules and regulations regarding international trade. And, all of them apply to you. Now, you may think that these are sealed, set in stone, never to change. That cannot be further from the truth. In fact, this way of thinking was the bane of many import/export businesses. Rules and regulations are also subject to constant change. Sometimes, even on a daily basis.

Therefore, the most essential of all money-saving tips for your import/export business is: stay in the loop. It will ensure your company to not only survive but thrive.

Tip #2 – Work with a Reputable Freight Forwarder

If you’re new in an import/export business, you’ll need all the help you can muster to stay afloat. A reputable freight forwarder company will make your job (and life) so much easier. They act as a bridge between you and your international suppliers or distributors, thus letting you focus on your business alone. A freight forwarder can take a lot of weight off your shoulders, from handling excessive paperwork to providing important updates on the status of your shipment. But, where their strength really lies is in a network of reliable carriers and connections to customs. Both things you need to expedite the process and make it more efficient.

Tip #3 – DIY

If you’re willing to put more time and energy into your work, you can avoid using a freight forwarder. However, bear in mind that this is only advisable if you know the ins and outs of how every single aspect of international freight works, mainly:

• Handling documentation, and;
• Choosing an adequate and profitable transportation method.

Handling Documentation

This is the part of work every business owner “loves.” Nevertheless, it’s an excellent way to cut some costs – when you learn to do it right. Needles to say, this will take time. Handling import/export documentation can get incredibly complicated. In some cases, you’ll need a dozen documents just for a single shipment. Furthermore, those documents must be impeccable – both filling and filing-wise. But, if you master this process and turn it into a routine, you’ll only stand to gain.

Choosing the Right Carrier

The difference in shipping prices can vary greatly from company to company and from method to method. Sometimes, this disparity is extreme, resulting in downing the profitability of a venture almost to the point of non-existence. To make sure this doesn’t happen, it’s imperative to find a suitable carrier. And the best way to do it is by checking:

• References;
• Reviews;
• How long they’ve been in business.

Do not settle for the first company you come upon. Ask for freight quotes from multiple companies and find the balance between price and service quality. And remember: cheaper isn’t necessarily better.

As far as the methods are concerned, you’re limited to only four choices:

• Boat freight: Cheap but slow. Remains the most popular option. Still, pay attention to routes, as delivery time can vary drastically;
• Airfreight: Expensive but fast. But, if you’re on a tight schedule or dealing with time-sensitive cargo, this option outshines all others;
• Rail freight: A middle ground between a boat and air freight. Both the price and speed fall in between these two. The most effective usage of rail freight is for transporting excessive quantities of goods;
• Road freight: Relatively cheap and fast, but suffers from many downfalls (traffic, customs, land-locked).

Since global shipping costs continue to rise, choosing the right carrier and transportation method(s) is essential.

Tip #4 – Be Flexible – It’s One of the Most Important Money-Saving Tips for Your Import/Export Business

If you take the advice from Tip #1, you’ll only stand to gain. As political winds change, opportunities will pop up left and right. That’s right; we’re talking about free-trade agreements. However, to benefit from them, you must be willing to change and adapt on short notice. But, with research, you can sort of “predict” when something like this can happen and, thus, be ready to act. Still, be mindful that “flexibility” doesn’t mean “opportunism.” You must research the market and procure necessary licenses and/or permits to avoid problems and fines.

Tip #5 – Don’t Be Afraid to Move Your Business to a More Convenient Location

Yes, moving your office is a drastic change. Still, a better tactical position will give you more ways to save money in the long run, not to mention an upper hand in the competition. However, to reap the benefits that office moving brings, it’s imperative to reduce downtime to a minimum. This is only possible if you have a team that can ensure a time-efficient transfer to new premises without sacrificing quality. But, once you have them, you’re ready to set yourself up for some serious money-saving.

Improve, Adapt, Overcome

The import/export business is in a constant state of flux. That’s why it’s essential to be as fluid as the market itself and to never stop learning. Fortunately, the mere fact you’re reading our money-saving tips for your import/export business means you’re on the right path. And, the further you advance down it, the easier it will be for you to cut costs and maximize profits.

This was a guest post by Marcus Dokken.

Author Bio

Marcus Dokken spent two decades working for various freight companies. Currently, he’s working on establishing his own import/export business while helping colleagues with his blogs.

The post 5 Money-Saving Tips for Your Import/Export Business appeared first on Universal Cargo.

This is a guest post by John Nicks.

The pandemic triggered many changes in various industries all across the world. One of the most affected areas is shipping costs. As the prices go up, the fierce competition forces companies to expand and provide more capacity to their clients. A situation that was unimaginable just a year ago is now treated as the new normal. While shipping companies and their clients hope for a change for the better, there are many reasons global shipping costs will continue to rise.

The Shipping Costs Continue to Rise at a Rapid Pace

One of the major things disrupting international shipping now is that the costs are going up at a steady pace. Even though there was a surge in prices during 2020, the current costs have tripled since last year. Freight rates or different routes do not affect this change, and the price increase is constant across all of the industry.

By following the chart, I can only conclude that this trend will continue for the next year at least. There is no sign of short-term relief, and the increase in demand accompanied by the lack of capacity does not help the situation either.

The Imbalances Caused by the Pandemic Play a Significant Part in the Shipping Costs Increase

Ever since the pandemic started, there has been a gradual build-up of various imbalances that have caused this situation. The demand went up, and the production lines could not keep up with the lockdown. Furthermore, the erratic opening of the borders only added to the imbalances in the industry. Companies had to cut the capacity on major routes to deal with the shortage of empty containers.

After a year of the pandemic, the global demand is recovering strongly, and competition between companies intensifies, which only favors the shipping cost increase.

The Lack of Alternatives to Ocean Freight Pushes the Prices Even Higher

Standard modes of transportation, such as via air or train, are now very limited when it comes to capacity. Ocean freight is the most used way of transport, and that kind of monopoly pushes the prices up. Due to an increase in demand, the shipping costs of household items saw a jump from 5% to 20%. Since there is no way to absorb increases on this scale, a logical conclusion is that the prices will only go up. Otherwise, the situation will cause product availability issues.

Unbalanced Recovery Causes More Disturbances

While some countries have bounced back and are exporting way more goods than before the pandemic, other countries struggle to get back on track. This is yet another one of the reasons global shipping costs will continue to rise. Unless we see a balance in how shipping operates between all countries, there will be no drop in the shipping costs anytime soon.

Furthermore, the delay of the peak season for the last year means that we will have different peak predictions for 2021. While it will start earlier, it may also end sooner than expected, resulting in a drop in volume. This only adds to the import-export imbalance the US is currently experiencing.

Are There Any Indications That the Shipping Costs May Drop at Some Point?

Due to all of the reasons why global freight shipping costs will continue to rise, there are no current indications of the change for the better. While it is not possible to affect the overall shipping costs, it is good to know that there are ways to reduce them. If companies focus on shipping outside of peak season and do less frequent shipping that includes more products, that could be a good strategy to reduce some of the shipping costs. Companies now need to focus on finding workarounds until we can say that the situation with the shipping costs going up is slowly fixing itself.

Reasons Global Shipping Costs Will Continue to Rise Explained

All of these reasons why global shipping costs will continue to rise are a clear sign that there is a difficult path in front of us. Companies now need to focus on finding workarounds until we can say that the situation with the shipping costs going up is slowly fixing itself. Even though there is a plan to ease the situation by increasing the capacity of new containers, it is not something we can expect to happen before 2023. Even with that plan in motion, the harsh reality is that there are high chances that the shipping freight rates remain at higher levels and become the “new normal”.

This was a guest post by John Nicks.

Author Bio

John Nicks is an economist with over 15 years of experience. He is focusing all of his knowledge on analyzing the economic crisis caused by the COVID-19 pandemic, and through freelance blogging, he aims to help companies bounce back from business losses.

The post Reasons Global Shipping Costs Will Continue to Rise appeared first on Universal Cargo.

This is a guest post by Brad Smith.

Cryptocurrencies, and the underlying technology, blockchain, have made waves around the world over the past few years. News headlines have highlighted the digital currencies’ potential to make instant billionaires, and the media has shared plenty of stories about individuals losing millions inadvertently. However, what received less attention is both cryptocurrency and blockchain’s ability to overhaul whole industries and sectors, including international trade and import and export.

According to the World Trade Organization (WTO), blockchain could revolutionize global trade completely. A 2018 WTO report notes that international trade could look “radically different” in 10 to 15 years. Before looking at how it may achieve this, here’s a quick overview of both cryptocurrency and blockchain.

Crypto and Blockchain 101

Cryptocurrency is digital money that has no physical denominations. Bitcoin is the most known cryptocurrency and has arguably impacted the financial world the most, but there are many others, including Ethereum, Litecoin, and Cardano. These currencies use cryptographic security.

Blockchain is a time-stamped and distributed digital ledger of transactions; like cryptocurrencies, it too is secured via cryptography. Recorded (blocks) and chained to one another with cryptographic tools, blockchain is one type of distributed ledger technology.

Using Crypto and Blockchain in International Trade

Both cryptocurrencies and blockchain have applications in international trade and import/export.

Early experiments with the latter have shown its potential to overhaul all aspects of the supply chain in several sectors, from sustainable salmon to oil and gas trade. The Harvard Business Review notes that blockchain can build speed, trust, and lead to greater transparency; it states blockchain can also “help supply chain partners with some of their challenges.”

In addition, data localization policies have proved difficult for many in international trade and import/export to navigate in the market. But because they are distributed ledgers, blockchain technologies are, by default, relatively immune to data localization policies. As the WTO report notes: “local storage requirements and local processing of data, which constitute the backbone of most data localization policies, are automatically met.” The digital ledger nodes are automatically fulfilled, making it much easier for companies to hit the requirements.

The former, meanwhile, has also proven its worth in trade. When paired with blockchain in supply chain management, it helps maintain both authenticity and traceability. Cryptocurrencies are more secure from a security standpoint than traditional banking or financial institutions—despite what the media will have one believe, crypto is arguably the most secure financial asset.

Furthermore, cryptocurrencies are proving their mettle in the world of trade. When combined with blockchain in supply chain management, they play a pivotal role in maintaining authenticity and traceability. It’s worth noting that cryptocurrencies offer a higher level of security compared to traditional banking or financial institutions. Despite the misconceptions perpetuated by the media, crypto emerges as arguably the most secure financial asset.

To harness the potential of cryptocurrencies and blockchain effectively in trading, Trade Pro Bot serve as great platform. These platforms equip traders with real-time information, market analysis, and trading signals specific to cryptocurrencies and blockchain assets. This ensures that traders are continuously armed with the latest insights and data, thereby empowering them to make well-informed decisions in the dynamic realm of digital assets and supply chain management.

There is also an additional privacy and anonymity aspect to consider. For example, a company may choose to use Bitcoin to protect financial privacy — or select another cryptocurrency for that matter. In this respect, cryptocurrency allows for decentralized trading; that is, there are no third parties, such as traditional financial institutions involved.

The role of cryptocurrency and blockchain in international trade and import/export is still evolving, as too are the currencies and distributed ledger technologies. While the primary application of both in context has been supplying chain management, other avenues and uses are also being trialed. Watch this space; we certainly are.

This was a guest post by Brad Smith.

Writer’s Bio

Brad Smith is a technology expert at TurnOnVPN, a non-profit promoting safe and free internet for all. He writes about his dream for free internet and unravels the horror behind big techs.

The post What Role Can Crypto Play in International Trade? appeared first on Universal Cargo.

The core lesson of 2020 and 2021, so far, is that many global supply chains are one bad day away from breaking. An outbreak at a single fulfillment location, a ship stuck in a canal, or an issue discovered during a routine inspection can all grind a supply chain to a halt. Whether or not the dust has settled for your business, there are some core lessons to learn and practices to implement to protect you from the next significant disruption. Here are a few to help you start.

Diversify Every Node

There’s a painfully obvious lesson in much of the recent supply chain disruptions that needs repeating. Diversify your supply chain at every point. Tell your boss and procurement heads, tell your suppliers, and tell your friends and family. Keep spreading this because, while it’s a top safety valve, many companies struggle to implement diversity.

One big issue is that diversity in the supply chain is easy to understand in the abstract but hard to put into practice. And, for many parts, there aren’t great ways to speed up the process. So, instead of thinking about the ideal, here are a few suggestions that a company can pilot to start diversifying its supply chain:

• Find an additional fulfillment partner whose locations are far from your existing partner. Split inventory between them and have them fill the closest orders, such as one on each U.S. coast. For eCommerce, consider testing a new partnership with a pilot for fulfilling your lowest-volume channel.
• Look for a manufacturer that’s local or in a different region from your current provider. Test their capabilities on one or two SKUs that are about to enter their normal seasonal slump, giving you more room for Q&A and the ability to rely on existing safety stock.
• Digitize your documentation and other import activities. Use a standard tool to manage processes — a freight forwarder should be able to point you in the right direction. Use that tool to find additional carriers that are already onboarded. This helps minimize extra activities that diversification can require.
• Use existing software, especially ERP tools, to create small orders for backup suppliers. Have them manage small channels or produce your safety stock. This helps you test a backup or additional supplier before there’s an immediate need.
• Add locations instead of replacing them. Let your partners be additive initially, such as new warehouse locations that utilize on-dock rail services at the Port of Los Angeles, while existing locations are served solely by trucks for this leg. If you had a disruption due to a natural event, such as tornadoes or hurricanes, add distribution centers away from impacted areas.

These steps and others all come with added expense. However, those are the realistic costs of doing business in the era of global supply chains. Even for core functions, multiple partners and locations are your best way to keep operations running and avoid complete disruption.

Understand Your Backups

Finding an alternative or replacement for a process, product, or other supply chain step is the first step. Your second is to create a detailed understanding of what it means to shift these elements, especially if you do so in a crunch.

Some differences are easy to quantify. How much lead time does a secondary manufacturer need? What is your minimum order volume with each partner? Can the trucks of a new carrier partner use your existing loading docks?

Other differences need greater study. When the Suez Canal was blocked, many companies started considering alternate routes like sailing around the southern tip of Africa. According to security experts, both waiting in line at the Suez and taking this alternate route came with increased piracy risks. Companies would need an existing plan that included research on safety and security to make a quick decision. In some instances, delaying a response until you have more data also puts your company, products, or ships at risk.

Don’t Run Too Lean

Through elements such as just-in-time (JIT) manufacturing, lean operations help companies maximize their use of capital. However, it requires everything in a supply chain to run smoothly to generate that benefit.

When something goes wrong, lean often just ends up meaning late.

We saw this before the Suez Canal blockage. During the early months of the COVID-19 pandemic, illnesses and lockdowns disrupted supply chains and manufacturers. Many people and medical settings had a hard time buying protective equipment. Some of that was due to JIT policies that couldn’t handle node loss or scale with demand.

Shipping delays from things like the blockage can compound JIT issues. These bottlenecks generally force a large number of containers to arrive at ports in a short amount of time. That congestion can overwhelm ports and cause further delays as ships must wait to unload. This is one event that creates delays during transit and at import.

The best way for companies to address this issue is to hold more inventory when possible and plan for longer lead times. Create capacity to fill a few more orders so you can meet demand spikes or avoid stockouts during a delay. Thankfully, diversifying your supply chain and shortening it with more local partners can help you mitigate some of these issues as well.

Include a Debrief Phase

It’s incredibly likely that your supply chain and overall business has experienced a disruption. Even if products could move to you freely, there’s a chance you faced shifting customer demand, employee concerns, or even the need to reconfigure warehouse space to create distance between staff. Many companies shifted to outsourcing their fulfillment because of an immediate need caused by such a challenge.

After you’ve taken those immediate responses and worked to get business back on track, it’s important to debrief. Company leadership, managers, and regular employees all need information on what happened, how you responded, and what did or didn’t work. They’ll need your help understanding what can be done better.

Senior leaders should take the lead on reviewing causes and reactions. Have them lead your debriefing by first explaining the goal: understanding what happened, it’s cause, and the impact of the event as well as your decisions. A robust debriefing can help your supply chain team understand and identify future risks, while generating more options to research as your response for the next black swan event.

And, don’t forget one element about debriefing that management researchers say is critical: it’s a way to understand what happened and plan a better response, not find ways to assign blame.

Help Your Customers Respond

One final consideration for developing your company’s response to black swan events is to look outside of your internal policies. Focus on the end-consumer and see what the disruptions look like from their point of view. Are the impact ripples washing in like a low tide or do they feel like a storm surge buffeting the shore?

Help your customers understand the impact and find ways to resolve it. If possible, help them relax and understand that things will be all right. Give reassurance and updated delivery estimates in the same breath.

Everything from the start of the COVID-19 pandemic through the Suze Canal and even the recent Colonial Pipeline disruption has been a reminder that supply chains run their lives. Each disruption highlights the fragility of their plan on any given day. Assist them in getting through these events. By being a comforting presence, they’re more likely to return to your storefront, digital or brick-and-mortar, when the seas settle.

This was a guest post by Jake Rheude.

Author Bio

Jake Rheude is the Director of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others. 

The post Are You Ready for the Next Suez-Level Disruption? appeared first on Universal Cargo.

As you look back over 2020 and into 2021, you may be wondering why freight rates are so high. The coronavirus pandemic affected global markets unlike any event in recent history. You may be feeling like freight rates are higher than ever, and you want to know why. We at Universal Cargo are here to help you understand why freight rates are at their current level.

Freight Rates in 2020: Year in Review

When COVID-19 became a worldwide pandemic in the first quarter of 2020, great uncertainty struck buyers and shippers around the globe. Due to job losses and a general sense of worry, people started spending less money, causing a decrease in demand for shipping. Companies also worried about the demand for their products and shipped fewer items. This is why freight rates became so low when the pandemic began.

By the end of the first quarter, people began stocking up on household goods. At the same time, they bought fewer services due to social distancing and concern over having enough money for the goods they needed to survive. This created a high demand for products, giving a higher workload to shipping companies. Freight rates increased as a result.

Freight movers had trouble keeping up with the high demand throughout the year. Fewer trucks were available to ship goods to meet this increased demand due to the pandemic, raising the value of each available truck. Although gas prices dropped during the first two quarters of the year, they steadily increased as the year went on, driving freight rates even higher.

By the third quarter, consumers were still spending higher amounts of money than normal on goods thanks to government stimulus packages and fewer service purchases. This caused freight prices to continue to spike as businesses sought to meet the high demand for goods. The trend of higher spending on goods carried into the fourth quarter. Fewer available trucks and an increased freight volume kept rates at record high levels, which continued into the new year.

Now let’s see how the COVID-19 pandemic affected different sectors of the shipping industry.

Ocean and Air Freight Rates

Shipping freight by sea has been a constant part of commerce since ocean-going vessels made it possible to move goods to foreign lands. Businesses rely on ocean freight to move large, heavy loads of products. Freight ships can carry many goods at a time, making ocean freight an efficient way to transport goods to the land of their next destination.

The COVID-19 pandemic and trade regulations between China and the United States were the biggest factors that influenced ocean freight rates in 2020. When the pandemic first started, companies began shipping less freight by sea to match the decrease in product demand. As the year progressed, demand increased, causing higher ocean freight rates. This remained steady into the holiday season as shoppers bought products over time instead of all at once at the end of the year.

The pandemic may have had the strongest effect on air freight rates of all shipping methods. Due to the highly communicable nature of the coronavirus, government mandates and safety concerns caused commercial air travel to plummet. And since most air shipping occurs on passenger jets, shipping prices spiked due to this decrease in travel. By the middle of the year, air freight rates returned to a more normal level. This lasted until the holiday season, when an increase in product demand caused air shipping prices to spike once again.

Universal Cargo will always compete for your business. Whether you need to ship freight by air or your business relies on ocean freight shipments, you can count on us for a competitive rate and the top-notch service you expect. We have the experience to get the job done. Our existing relationships with shipping companies around the world guarantee that you get the help you need when shipping products by air or by sea.

Trucking Freight Rates

The trucking industry also experienced changes in 2020 as a result of the coronavirus pandemic. In the first quarter, freight rates decreased as the demand for shipping goods saw a drastic drop. Then, as consumers began ordering more goods online, freight companies found themselves unable to keep up with the spike in demand. This created a high demand for truckloads and not enough trucks to move them. This caused trucking freight rates to increase, and the high demand continued for the rest of the year.

Universal Cargo has expanded trucking freight services in the continental United States to keep up with this high demand. Our relationships with other trucking companies allow us to make connections all across North America. When you need to ship your goods by truck, you can count on us to make it happen with exceptional results. And as always, we offer competitive prices to earn your patronage. You can enjoy great rates with top-of-the-line service with Universal Cargo.

Outlook for Freight Rates in 2021 During the COVID-19 Pandemic

During the first quarter of 2021, trends from the end of 2020 have remained steady. There’s been a consistent demand for freight shipments as consumers continue to buy goods online and spend less of their money on services. People are traveling less and taking fewer vacations all while doing more shopping online. Even as freight rates maintain their consistency, there’s still a high level of demand keeping freight rates up.

While the coronavirus outbreak continues, you should consider approaching the shipping of your goods with hopeful optimism. The introduction of vaccines has the potential to bring public health back to a normal state, causing businesses to look forward to a gradual return to regular freight rates. If tensions continue to ease, freight rates should avoid any drastic dips or spikes.

As you continue to ship goods in 2021 and beyond, keep a close watch on the latest COVID-19 information and international trade deals to help you make smart shipping decisions. For now, remember that there’s still a level of uncertainty about what could happen with the global market, affecting freight rates. But the difficult situations of 2020 are in the past, and 2021 is showing promise.

Ship Your Goods With Universal Cargo

At Universal Cargo, we care about the companies we do business with. Our goal as a company is to enrich the lives of everyone involved with shipping your freight, from our workers to yours. You can count on our team of experts to make the shipping process easier for you, and you’ll enjoy working with professionals who know your company and meet your unique needs. You’re more than a number in a filing cabinet to us. You’re a valued customer, and your success is our success.

We hope you’ll contact us to learn more or request a rate online today. Freight rates can be uncertain. Let us be your freight partner so you can ship your goods with confidence.

The post Freight Rates: Trend Review for 2020 and the Outlook Into 2021 appeared first on Universal Cargo.

This is a guest post by Victor Harper.

Logistics, as we know it today, is an essential part of every successful business. You can see its wide application in commercial, non-commercial, government, military, and other types of trades. Over time, organized storage and transportation of goods, raw materials, and products have become as important as any other aspect of business operations. However, managing the distribution of various items didn’t become what it is overnight. The history of logistics started centuries ago as an integral part of solutions to provide supplies for different military affairs and population migrations.

 

A History of Logistics Through the Ages

Logistics represents effective planning and distribution of products and materials from one point to another. It involves an entire chain of services with the purpose of delivering goods to various locations by different means. Besides transportation, these operations also include storage, management, and control. From the initial idea to provide supplies for warfare, logistics expanded its use in various aspects of life. Nowadays, it’s an entire industry that provides extended maneuvering capabilities you can see across multiple delivery services.

Everything we have available today that surpasses the limits of international borders and trades is because of logistics:

• We can now get and provide supplies all around the world, at a fraction of once high costs;
• Buy products and sell items wherever the international agreements allow us to;
• Rather than researching and dealing with relocation on our own, we can use shipping for non-commercial purposes to move our entire households internationally.

 

Logistics in the Ancient Times

Probably the first application of logistics was for military purposes. Like China and Egypt, various ancient civilizations needed an efficient way to expand their influence through trading and warfare. They needed adequate methods to transport goods to distant parts of the known world. However, they were also looking for solutions to deliver weaponry and provision supplies to their conquering armies.

 

The First Signs of Logistics Advancements

One of the first signs of modern logistics that rely on systematic distribution can be seen in ancient Greeks and Romans. Alexander the Great used logistics to provide support for his impressive and long campaigns. Romans developed the first modern roads to help them connect and distribute goods for their legions to distant parts of the empire. Hannibal manages to enter Italy through the area, impassable by armies, thanks to clever allocation and supply of resources. Many other empires, including Persian invaders, used calculated logistics to make it possible to move large troops across the lands.

Considering the scale of armies and the period over which warfare lasted, this is impressive. Not only were they dealing with transportation, but they were also resupplying at local areas and successfully creating depots along marching routes to help them in their campaigns. Quite often, civilian services, like engineers and technicians, were required to provide support to their troops. This allowed units to march fast and reach the outer limits outside their empires’ borders.

 

The Middle Ages and Distribution

By the time the Middle Ages arrived, there were many routes established for the transportation of goods and armies. Countries had storage systems that were often scarce but sufficient, allowing them to store supplies from the local countryside.

In general, their castles and fortresses had a dual role:

• to protect the regional resources and population;
• to ensure the storage and distribution of goods between regions.

Each military division ready for deployment was carefully organized and had a set of animals and baggage carts. By the end of the Middle Ages, military logistics further improved. To increase mobility and sustainability, rolling magazines and storage depots were introduced.

 

The Industrial Age and Logistics

With the development of internal combustion engines, logistics significantly changed. The industrial age brought us steam engines that powered railroads and ships. Meanwhile, the technological advancement in transportation and communication during the 19th century expanded the use of logistics in everyday life. Now, large trading companies could transport their goods much faster and reduce their operational costs. By the beginning of the 20th century, central and western Europe and eastern parts of the United States had the most advanced railroad systems. 

Unfortunately, the two large World Wars took advantage of the industrial revolution, further expanding the use of motor vehicles, communications, and naval and air means of transportation and warfare. Eventually, this revolutionized air transportation as we know it today. On the bright side, once wars were over, the entire industry shifted from combat to business. This gave us the foundation for today’s large-scale distribution and production planning.

 

The Advance of Information Technology

The development of computer systems is another technological advance that revolutionized logistics. The ability to store and track a huge amount of data provided new systems with a considerable advantage. Thanks to IT, we can now better plan, manage, and optimize every aspect of logistics, regardless of the scale of businesses. Furthermore, the Internet provides businesses with additional means to use various digital channels to understand demands better and increase productivity. This will eventually, if not already, lead to the complete automation of a large percentage of tasks included in supply chain management.

In the future, we can expect that further technological advancements will additionally support the flow of commercial and non-commercial goods. This will allow us to use drones, clean energy, and different online services. Not only as a way to enhance business operations but as a means to improve our daily actions. The history of logistics has taught us that the way of development from warfare to business operations was long. However, since the advancement period is shortening as time passes, completely new market opportunities may arise soon.

 

 

This was a guest post by Victor Harper.

 

Author Bio

Author bio: Victor Harper is a former distribution manager with a keen interest in writing about business operations. When not working, he is spending his time reading and learning about numerous technological advancements. He is always searching for new means to increase and speed up the efficiency of operational tasks.

The post A Brief History of Logistics appeared first on Universal Cargo.

It’s a well-known fact that most supply chains can benefit from improving their processes. However, as a logistics manager, you need to be careful. Finding the gaps in your logistics process can be a big operation.

It’s not so easy to identify all the factors that may influence your product movement. There are a lot of things to keep track of, and that makes it difficult. Warehouse operations and order management will impact the outcome and cost. However, the same goes for outsourcing functions and freight management. Although the potential of business process outsourcing is massive, it may not be the best thing for you.

So, what you need to do is observe. First, you should examine, measure, and review your current process. And when you know what you’re working with, you can dive into revisions of individual stages of the process.

Learn How Highly Effective Supply Chain Operators Are Doing It

Before you start deciding how you want to rearrange things, see how others managed to create a great logistics process. Some big companies have been designing, upgrading, and improving their logistics for decades. So, there’s no reason why you shouldn’t learn from what they did.

The trick here is to apply measurements to critical control points in the operation. It is how successful companies develop their system at all times. With the results, you’ll be able to lower costs and improve efficiency, which is what you want to do.

There are, however, a few key factors that you need to stick to when comparing your process to theirs.

• Find a company that isn’t a competitor to you but whose product type matches yours in all essential aspects.
• Learn to do the benchmarking and to embrace the correct elements while deferring the inappropriate ones.
• Apply only the measurements that are relevant for your business and avoid those that are irrelevant.
• Use the freshest data you can get. That’s the only way you can identify the gaps and make a plan to improve your process.

By benchmarking, you’ll get not only new ideas but maybe some breakthrough concepts you were unaware of. Armed with those, return to your company and find a way to implement them among your departments.

Common Gaps in Logistics Processes

The most frequently seen problems in the supply chain come from the areas of transportation and customs clearance. To be even more specific, things usually go wrong between freight forwarders and in-country brokers.

Also, packaging and handling mistakes can cause unwanted temperature excursions. That is, if products are exposed to different external environments during shipping. It happens most often in air freight. So, if you’re transporting something sensitive, shipping via air is not always the best option. On the other hand, very robust packaging can manage the changes in temperature and humidity. But that’s not always an option.

The biggest problem is that every nation has different cold chain requirements. For instance, for the same product, one country may allow no temperature excursions. Contrary to that, another may allow them to be as high as 5 degrees. Some countries demand data loggers, and others accept indicators. So, the problem is that there isn’t a blanket policy for handling and distributing the same product anywhere in the world.

All these pieces of information should help you identify and find the gaps in your logistics process. In other words, you’ll know where to look.

Create a Roadmap

To fully incorporate new strategies, the logistics team needs to have an actionable plan. And that plan should be in order with the company’s business plan. So, as you reveal the gaps in your chain with measurements, you can start conforming your operations to the new program.

But, before you can proceed into execution, you need to have the full support of top management. An ideal plan should have the ability to be managed by company staff. And you also should provide the proper communication and education to everyone involved in it.

Don’t Be Afraid to Outsource the Decisions

You need to understand that outsourcing doesn’t necessarily have to mean loss of control. In fact, you might even end up with a better oversight into the process than before. You want to make sure that a freight forwarding company you’re reaching already has proper communication and built-in logistics processes. By working with them, your company can save money and improve performance.

There are lots of services that are better to outsource. This way, you’re reducing the capital expenditure, staffing, and training costs. It allows you to focus on the core parts of the process.

Some of the most commonly outsourced sectors are warehousing and delivery services. These two steps of the process can be very costly if you do them on your own. Also, they’re often a reason for headaches as they require plenty of planning. So, it’s not a bad idea to let an already established expert handle them.

Make Forecasts According to the Marketing

To create a successful supply chain, you need to have accurate sales forecasts for every step of the process. You want your inventory levels to be on workable minimum at all times. And to achieve that, all raw-material sourcing, manufacturing, freight forwarding, warehousing, and delivery options must have realistic inventory projections.

Having the right size of the inventory of each level will smooth out production schedules. But that’s not even the best thing about it. When you eliminate emergency deliveries, the satisfaction of your customers will rise. You’ll end up with a streamlined logistics process, and you’ll reduce the costs along the way. It’s a win on all fields.

Improve Your Information Systems

As we all know, inventory tracking has changed in modern warehousing quite a bit, thanks to new technologies. So, why wouldn’t we expand the use of those technologies even further?

It’s essential to link the different departments and outsourced partners with the same real-time information. It will allow you to eliminate the gaps in the most efficient way.

You did all that work while finding the gaps in your logistics process, and you fixed all the issues. So you should set your system to keep everything in an improved form. Knowing when, where, and how much inventory you have at every link of the chain will make that possible for you. 

This was a guest post by Nick Jones.

Author Bio

Nick Jones is a New York-based freelance writer interested in mechanical engineering, transport, and logistics. He focuses his work on improving current logistical systems as well as on the future of the niche. He’s also a drone enthusiast and a cyclist.

The post Finding the Gaps in Your Logistics Process appeared first on Universal Cargo.

In 2012, to better get the edge over the competition, Maersk teamed up with Ericsson, the Swedish telecommunications company, to create a remote container management (RCM) system that operated in real-time and tracked the company’s reefers.

Since then, nearly 300,000 reefers have been equipped with smart devices that communicate reefer performance data 24/7 to Maersk’s data cloud. From there, the company can analyze the data, track and monitor performance, and generate roadmaps for ongoing operations.

Maersk notes that prior to the full implementation of this system in 2015, nearly 60 percent of all its cargo claims resulted from malfunctioning reefers and incorrect temperatures. The new system greatly cut down on faults, allowed for faster repairs, and minimized the need for manual inspections.

Because it utilized the analytic and monitoring power of Internet of Things (IoT) technologies, the company lessened its losses, provided better service to clients, and ultimately, saved a lot of money.

In 2021, the import and export industry, along with shipping and logistics, stands at a precipice. Embracing new technologies and overhauling existing systems may be initially expensive and complex to enact, but it is increasingly clear that jumping on the moving train is the only way for individual companies to stay competitive.

Beyond Smart Sensors

Vast webs of smart sensors on reefers aren’t the only new technology on the horizon either; the advent of automation and blockchain technology is also making waves in the industry.

For instance, TradeLens, launched in August 2018, is a digitized global trade platform powered by blockchain. It connects international trade members in one centralized place and cuts through a lot of the noise and bureaucracy associated with inter-nation transportation. That’s not to say bureaucracy has disappeared, rather that TradeLens makes it simpler to ensure processes are met and provides records of this.

Automation could also reach the import export business sooner than expected in the form of autonomous trucks and vessels. In 2017 the home-made boat SEA CHARGER, a solar powered vessel, successfully voyaged from California to Hawaii while unmanned. The people behind the boat’s journey used GPS and a satellite modem to guide the boat and ensure connectivity, proving that automation is a viable option in the future.

Companies in the shipping industry are already exploring technologies that may eventually automate larger vessels. Of course, battery limitations mean the technology needs to be examined closely and tweaked to suit commercial vessels, but according to many speculators, automation could be the future of logistics.

The Upshot?

It has been conclusively shown that intelligent, modern solutions save companies money in the long term, despite the initial costs of enacting these. Additionally, because smarter systems lower operational costs, shippers and import/export businesses can pass some of these savings on to their clientele, which helps keep these companies competitive in an increasingly nimble market.

However, there is a catch-22 here, because newer solutions rely heavily on online systems, the cyberattack threat level rises accordingly. Companies need to employ dedicated security personnel and ensure their security measures are top-notch.

This was a guest post by Brad Smith.

Author’s Bio

Brad Smith is a technology expert at TurnOnVPN, a non-profit promoting a safe and free internet for all. He writes about his dream for a free internet and unravels the horror behind big techs.

The post New Technologies Used in the Import and Export Industry appeared first on Universal Cargo.

This is a guest post by Maggie Simpson.

As the backbone of the global economy, international trade has its own history and quirks. Buckle up as we get the lowdown on some of the most bizarre shipping laws worldwide, surprising goods countries across the globe export for a tidy sum, evolutionary nature of the industry, and more. Here are some fun facts about international trade to serve you as a great new conversation starter.

International trade is an age-old practice

First in our line of interesting things regarding import and export business is its very own quick history lesson. Although the accounts and elucidations of the international trade as an exchange between different nations did not begin until the rise of the modern nation-state, variations in resource availability have always existed.

Starting all the way back in 6000 BC with the barter system, when goods were exchanged for spices, food, and, at times, human skulls, the trade saw a shift towards the 16^th and 17^th-century mercantilism, and then, to its first biggest highlights – “The Wealth of Nations” and “Comparative advantage principle” of the 19^th century. Despite its ups and downs thenceforth, the last decades have witnessed the sum of imports and exports across nations moving up the vertical axis and eventually reaching the value of over 50% of global production.

What was the business like one hundred years ago?

Transportation

Perhaps something that would best highlight the primitive beginnings of transportation is the fact that before the era of the automobile, the main modes of transportation were ships, rail, and horse and carriage. For starters, until steam-powered ships replaced sail-powered ones, transporting cargo across the Atlantic literally took weeks. As for truck transportation, the first truck could haul only 3,300 pounds with its four horsepower, two-cylinder engine trucks, but it wasn’t invented until 1896. And to top this, there weren’t any paved concrete highways until the first one was created in 1909, so we’re looking at 20 miles per hour speed limit for cars and 7.5 for trucks on most roads at the time. Yikes!

Technology

The last century’s remarkable advances took communications, logistics, and supply chain technologies to a whole different level, thus completely altering how business is done. GPS satellites, internet, credit cards, bar code scanners, iTranslate, smart ports – you name it! Today, it’s possible for companies to communicate instantly with overseas clients, send documents with just a few clicks, and track (and even watch) their shipments traveling across oceans, whereas 1915 didn’t even have a calculator!

Containerization

The arrival of containerization in the 1950s presented a genuine breakthrough in international trade. Not so long ago, loading and unloading goods at commercial ports were incredibly time-consuming and laborious. Business people had to subsidize both the worker’s wages and have a ship moored at port. Containerization made it possible for exporters to load containers with their goods at the place of production instead of at the quayside, thus decongesting the formerly crowded ports.

Of course, it is crucial that the regulations against storing some items in these containers are carefully followed. However, another surprising fact about the international shipping industry is that these containers are only inspected in 5% of the cases.

90% of goods are shipped by ocean freight

The next one of our fun facts about international trade is that people have used water for transporting cargo since the beginning of time. Throughout history, international trade shipping has positively influenced the relationships many countries share, making a global impact on their economic prosperity, political views, and social standards. And it all started with them attaching small cargo to single logs for trade purposes. Having come a long way since then, container ships of today can meet the needs of any given business, with some of the largest ones carrying more than to 20,000 TEUs. So, it comes as no surprise that ocean freight accounts for a whopping 90% of all shipments (primarily due to its efficiency and cost-effectiveness), driving the growth of many businesses across the globe.

What does the future hold?

Even though shipping is the most environmentally friendly mode of transport (consuming considerably less energy and fuel than trucks or planes), it is still the world’s 6th largest pollutant. Luckily, it’s on the brink of a revolution with shipping decarbonization as the primary driver of change. Adopting a promising GHG reduction strategy in 2018, the International Maritime Organization (IMO) set the target of at least a 50% reduction of total GHG emissions from shipping by the year 2050 and the average carbon intensity by at least 40% by 2030.

French town bans clowning around

Those looking to ship their packages to another country, be it for personal or business purposes, should always be aware of the dos and don’ts of that country’s shipping laws. The reason for this being a surprising number of oddball custom laws worldwide regarding what is allowed or not allowed to be brought through the borders of a specific country. Bear in mind that these countries aimed to protect their citizens and boost the growth of their local businesses, which eventually caused them to end up on various lists featuring the most bizarre shipping laws across the world. Banning the import of clown costumes due to a series of incidents in France nationwide is just one of these examples. Namely, the French town of Vendargues cracked down on clown costumes after a creepy trend on social media had provoked prank attacks on the streets. The whole of France reported such incidents in 2014.

Similarly, shoe manufacturers should be aware that sending a pair of matching shoes to Mexico, India, and South Africa is considered illegal. This was meant to encourage the growth of the local footwear industry. Moreover, in 1991, Singapore has banned chewing gum in order to promote civic cleanliness. Saudi Arabia banned greeting cards featuring music and car horns; the European Union doesn’t allow Japanese Pufferfish due to its highly toxic organs, etc.

Is the UK the world’s biggest exporter of legal cannabis, or what?

Transform Drug Policy Foundation, a registered non-profit charity based in the UK and working in drug policy reform, reports to the BBC that the government is denying the potential medicinal properties of marijuana (that can be administered on patients at heroin detox to cure their mental illness) while, at the same time, supervising “the world’s biggest government-licensed medical cannabis production and export market.” Yes, the substance is banned in the UK. However, INCB (the United Nation’s International Narcotics Control Board) reports 95 tons worth of legal cannabis production in 2016. Accounting for nearly 45% of the world’s legal total output, this makes the United Kingdom the largest exporter of cannabis-based medicines in the world.

Next in line, right after the UK, is Canada, with its 85 tons of production. However, this is not the only surprising thing about potential Canadian exports. OEC reports from 2017 name Canada as the top exporter of bovine semen for artificial insemination to overseas countries – £45.1m ($60.2 million) worth of bovine semen, to be exact. And – surprise-surprise – the top importer was the UK!

To the moon, through customs, and back

The following is more of an interesting story than one of the fun facts about international trade, but – did you know that even if you had to have “Moon” listed as your departure point, you wouldn’t have been able to evade the “customs declaration” form back in 1969? Apollo 11 astronauts, after their remarkably long business trip, had to declare their cargo to customs officials at Honolulu, Hawaii, USA. Neil Armstrong, Buzz Aldrin, and Michael Collins all filled the customs form declaring tariff-exempt moon rock, moon dust samples, and other lunar samples and listing their en-route stop as “MOON.”  Apparently, Moon visitors are no different than the rest of us who leave the country. As NASA spokesperson Nicole Cloutier-Lemasters said: “They do have a government passport, but they do have to go through customs, just like the rest of us.”

This was a guest post by Maggie Simpson.

Author Bio

Maggie Simpson is a freelance writer who loves history. She has been content creator for many websites and her favorite topics are history and travel-related. In her free time, Maggie enjoys reading and walking in the nature.

The post Fun Facts About International Trade appeared first on Universal Cargo.

In many ways, freight shipping and logistics serve as the cornerstone of the global economy. Everything from construction materials to food, to computer parts is shipped via ground, sea, or air freight, and consumers and businesses around the world rely on these services to bring them the goods they need to do business and live life.

Freight is shipped through many different methods, and it’s important to understand the differences between each method. Here, we’ll discuss eight common methods of freight shipping and the ways each one contributes to a dependable and efficient network of U.S. (and international) logistics.

Ground Shipping

Ground shipping is the logistics backbone of the United States’ domestic economy. It includes truck and rail freight. Major carriers such as FedEx, UPS, and DHL offer ground freight options in the U.S., but truck freight is also often shipped via smaller carriers.

1. FTL Ground Freight

Full truckload (FTL) ground freight is a truck-based method of shipping in which the shipper rents a full truckload of capacity from a freight carrier. FTL shipments typically weigh over 10,000 pounds and involve 10 pallets of goods or more. FTL freight is the preferred method of ground freight when a single shipper must transport a full container of goods quickly and efficiently. FTL may also be used for extremely urgent shipments that are important enough to merit shipping on their own, whether or not they’re within the typical weight range of an FTL shipment.

2. LTL Ground Freight

Less than truckload (LTL) ground freight is a form of truck freight in which a single trailer or container is shared between multiple freight shippers. An LTL shipment often involves many different types of goods and numerous different destinations along a single route.

LTL shipping is a widely popular method of freight transportation because it’s cost-effective and often allows for extra service add-ons such as white glove delivery and load tracking notifications. LTL can also reduce the toll of freight shipping on the environment because it allows shippers to consolidate their shipments and consume fewer resources than shipping multiple small shipments separately.

3. Rail Freight

Before the advent of interstate highways, railroad freight was the premier way to ship goods inside the U.S. Although it’s been supplanted by truck freight in many ways, rail freight can still be a cost-effective method for shipping many types of goods, depending on origin and destination points.

The major downside of rail freight is, of course, its reliance on rail infrastructure. Rail freight often cannot reach rural areas and almost always requires goods to be transferred to another shipping method. However, it’s a key part of North American freight networks and is also notable for being more environmentally friendly than many other types of freight due to its high efficiency.

Marine Shipping

For relatively low-urgency bulk international goods, marine shipping is the preferred and most cost-effective shipping method. Enormous freight liners with capacities that can reach 20,000+ containers help create big cost savings and keep the international supply chain steady and reliable. Carriers such as Maersk and Mediterranean Shipping Company (MSC) dominate the marine shipping landscape.

4. FCL Marine Freight

Full container load (FCL) marine freight is the marine equivalent of FTL freight. A single shipper rents or purchases an entire container of goods, which is then transported via container ship. An FCL container is shipped whether or not it’s full, which means that FCL is at its most efficient when used to ship large quantities of bulk goods. When packed correctly, an FCL container is also a relatively safe and gentle way to ship cargo.

5. LCL Marine Freight

Less than container load (LCL) marine freight is the marine equivalent of LTL freight. Multiple shippers rent space inside a single shipping container transported via container ship.

LCL container freight offers many of the same advantages that LTL truck freight does. It’s extremely cost-effective, allows smaller shippers to move their goods without paying the cost of a full container, and helps make shipping more environmentally friendly by consolidating what would otherwise be multiple loads.

Air Shipping

Air freight is by far the fastest type of shipping, but it’s also the most expensive. Air freight is also one of the most gentle types of shipping, so types of fragile and valuable freight such as electronics are frequently shipped via air freight. Companies such as UPS, FedEx, and Emirates SkyCargo are among the largest carriers of air freight.

     6.   Express Air Freight

Express air freight is both the fastest and most expensive of all shipping methods. An express air shipment is flown directly from its origin to its destination, with only stops necessary for refueling along the way.

Shippers use express air freight for the highest-priority goods that can’t wait to be delivered. An express air freight shipment, while expensive, can make all the difference in keeping a just-in-time inventory system running.

     7.  Standard Air Freight

Standard air freight is a slower but still relatively speedy and reliable type of air freight. It’s typically used for high-value goods that need to arrive quickly but don’t need the ultra-high-priority shipping of express air freight.

Standard air freight shipments are frequently hauled by multiple different carriers during a single trip. Shippers may also have the option to ship via deferred air freight, the slowest type of air freight, which involves multiple stops along the journey to pick up and offload other cargo.

Non-Carrier Freight Shipping

8.  Freight Brokers

Freight brokerages are a special type of shipping service in that they don’t own or operate freight carrying assets such as trucks or ships. Instead, shippers hire freight brokers to coordinate the shipment of their goods through multiple third-party logistics providers, sometimes between multiple different modes of transportation. A freight broker also helps coordinate paperwork and shepherds goods through the customs process.

Freight brokers must be licensed and registered by the Federal Motor Carrier Safety Administration and must post a freight broker bond (a type of surety bond) in order to become licensed. These restrictions help ensure that freight brokers operate legally and ethically.

Each type of freight shipping service has its own uses, advantages, and drawbacks. Shippers should carefully evaluate each method before choosing one and should maintain familiarity with other options so that they can continually evaluate the most relevant options for their business models.

This was a guest post by Jason O’Leary.

Author Bio

Jason is the co-founder of Surety Bonds Direct and brings 15 years of deep technology, product development, and marketing experience to the company. He has been leveraging Agile practices for well over a decade and is versed in various Lean practices as well. Jason makes his home in Charleston, South Carolina with his wife and 3 children.

The post 8 of the Most Common Freight Shipping Services appeared first on Universal Cargo.

The final days of 2020 ended with some of China’s highest container rates in recent memory coupled with port congestion, space demands, and other metrics that normally would feel at odds with each other. Container shipping was about as confusing as possible and pushed many supply chains to breaking points.

However, that doesn’t stop your business from operating. You still need to import and export goods and final products to customers eagerly awaiting your offers. For companies with bulky products and large packages, these issues are especially worrying.

There’s no magic wand for container supply, contract concerns, rates, or delays. However, we can make a few suggestions to protect operations and minimize some costs, so you have leeway to adapt and be flexible when the next ripple or wave hits your supply chain.

Consolidate in Multiple Ways

Large, bulky items can make it difficult to fill a container, but FCL (full container load) should be your preferred way to move these items. Not only does it reduce expenses compared to multiple LCL (less than container load) shipments, but you also are reducing the amount of handling in transit. This can minimize the risk of damage to your goods, which should be a core focus based on these shipments’ cost and complexity.

For inbound goods from a manufacturer, work with that manufacturer or a freight forwarder to have access to a broader set of goods and orders for consolidating purposes. If you’re exporting, focus on staging inventory in those target countries and locations as much as possible. When relying on a 3PL for distribution, bring in their experts for support.

Beyond working to consolidate loads into full containers, you can also look at how your bulky goods are constructed and shipped. Suppose there are opportunities to reduce product size before shipment. In that case, you may be able to fit enough additional items in a container load to make up for any labor costs associated with re-assembly. Manufacturers may also support shifts to flat pack furniture and goods, which can help you take advantage of the foreign trade zones we’ll discuss shortly.

Take Your Time

Some supply chains are experiencing higher error rates than in previous years because they’re rushing to fill orders amid great uncertainty in container availability and access to lanes. Many are taking their first steps in cross-docking as well due to import delays from overseas manufacturers. This frantic pace likely means that companies will experience more customs issues with shipments and new products.

Tasks as simple as securing the proper licenses, bonds, and permits for a business are at risk of being missed. Correctly labeling and marking shipments, having documentation in place, and scheduling each stage of the move are essential. While big-picture aspects don’t necessarily change much for bulky goods, you’ll want to ensure you’re working with partners that typically handle large items at each step. It’ll reduce the chance for mistakes or misunderstandings around what’s needed because of size or special handling requirements.

When customs officials impound merchandise, they charge high storage costs. These costs scale quickly when it comes to heavy, bulky, and irregularly shaped items.

Proper classification is also a must for bulky packages and goods. Improper classification both increases cost and risk because of stow-ability concerns for bulky packages. Your goods may lack load-bearing surfaces and limit stacking or be too long to allow loading with other freight. The added costs of re-billing can quickly eat into revenue.

Bulky goods create many opportunities for errors. Rushing only serves to make that worse.

Hire Useful Help

While most importers and exporters use freight forwarding services for things like FCL consolidation, bulky packages and items need a more proactive partner. Hire companies that work with you to understand local regulations and capabilities, not ones that just get you through customs and stop.

For the U.S., this can mean partners who help you identify foreign trade zone (FTZ) opportunities for shifting final assembly to the U.S. Depending on your inventory volume, you might save significantly on landed costs with its benefits to inventory taxes and inverted tariff relief. FTZs also provide a safe place to inspect and repair goods after their ocean voyage — damaged items destroyed in zones generally are not subject to import taxes and duties.

If your goods travel to and from the EU, with any movement to the UK, you’ll need partners with strong ties who can help you manage the new complexities of Brexit. Companies that can shift existing supply chains to minimize these moves could potentially generate significant savings for operations today.

Other areas of consideration for bulky items include partners who have the equipment to safely pack and move heavy goods, repackaging of large but lightweight goods to take advantage of DIM (dimensional) weight rates, and partners who are able to create custom boxes, crates, padding, and more for the precise specifications of any bulky product.

Much of 2021 is going to involve looking back at COVID-19 and what lessons our supply chains have learned. A core focus should be working more closely with our supply chain partners to understand capabilities and offerings at each stage. Partners that offer multiple pathways or make it easier to stage goods during times of calm are an important part of being able to respond to whatever comes next.

This was a guest post by Jake Rheude.

Author Bio

Jake Rheude is the Director of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others.

The post Shipping Bulky Packages: 3 Tips to Save Your Revenue appeared first on Universal Cargo.

The epidemic made the entirety of 2020 beyond all expectations. Global trade stirred by the “black swan” of the epidemic ushered in a great recession and fell into negative growth. 

But for the shipping industry, the situation was quite different. In fact, there have not been many years when the industry has gone from low to high like in 2020. Many shipping companies and freight forwarders have even benefited from misfortune. Rising freight rates brought huge profits to ocean freight carriers. More importantly, the epidemic has accelerated the digital wave in the shipping industry, and some cutting-edge new information technologies have also accelerated the landing speed.

The shipping freight market is currently severely disrupted, especially along Far East routes, due largely to container shortages and imbalances. What is the trend of the shipping industry in the year 2021? Here come 10 predictions.

1. How long will the impact of the epidemic last on trade?

COVID-19 has hitherto unknown global economic and trade implications. 

Up to now, the global epidemic situation is still deteriorating, the number of confirmed cases in the United States, Brazil and India is increasing, and the virus mutation has occurred in countries and regions including the United Kingdom.

When the epidemic is not completely under control, its impact on global trade will always exist. Even though some countries and regions have started vaccination, it will take time for the full vaccination to take place. 

Whether international trade can salute the dawn in 2021 is still a question. 

2. Where will the China-US trade war go?

As the global epidemic spread, the United States ushered in a new leadership election, with Joe Biden ultimately defeating incumbent Donald Trump to become the next president of the United States.

So far, the China-US trade war initiated by Trump during his term of office has lasted for two plus years. After Biden’s victory, the outside world is paying attention to his trade policy with China. 

Will the trade war continue? 

Recently, some media reported that Biden nominated Katherine Tai as the U.S. trade representative and said that he would eventually target China’s improper trade practices. Katherine Tai has previously initiated trade lawsuits against China.

3. How does China’s shipping industry move forward under the “double cycle”?

In 2020, when facing the complex and severe development situation at home and abroad, China proposes to “gradually form a new development pattern with domestic big circulation as the main body and domestic and international double circulation promoting each other,” which will be an important guiding ideology and starting point for China’s deployment of the 14th five year plan and long-term economic and social development in the future.

For a long time, China’s shipping industry was obviously export-oriented. So what will the shipping industry be like under the new development pattern of “double cycle”? 

4. How long will high freight rates last?

For the entire shipping industry, the most intuitive impact of the epidemic on the market is the continuous surge in freight rates.

At the beginning of 2020, a large number of sailings were withdrawn from shipping lanes based on the pessimistic forecast of the market. However, after the epidemic situation in China was effectively controlled, the freight volume recovered rapidly, driving the main routes’ freight rates to continue to rise. In the follow-up, with the global epidemic out of control and frequent problems such as port congestion, freight rates soared, and the trans-Pacific routes’ freight rates even rose by more than 200% year-on-year.

Traders want freight rates to fall quickly, but so far, the realization of this desire is still far away.

5. How will shipping companies get along with freight forwarders?

Because of the break between DB Schenker and Maersk, how shipping companies and freight forwarders get along with each other has become one of the most concerning topics in the industry.

At present, Maersk’s new strategy is to transform the group into a comprehensive transportation and logistics company. Under this background, it is bound to be part of the traditional freight forwarding business, and thus become a competitor that freight forwarding enterprises cannot avoid.

Freight forwarders face the challenge of liner companies’ development trend of expanding the supply chain and extending service content. How can freight forwarders resist?

6. Is the best time to “buy at the bottom and build a ship” now?

COVID-19 has caused heavy losses to the global economy and the uncertainty of the market has increased. In this context, liner companies were more cautious in operation, and their willingness to order new ships will decline significantly.

However, this situation was broken at the end of 2020, and liner companies including ONE, HPL, and EMC shipping announced their new shipbuilding plans one after another.

Regarding this, some industry analysts believe that the downturn in the shipbuilding industry has led to a decline in ship prices. Therefore, now is the best time to “buy at the bottom” for shipbuilding.

However, there are also views that the current supply and demand situation can not be solved by increasing transport capacity, and more new shipbuilding will have an impact on the follow-up shipping market.

7. When will the shipping industry apply blockchain?

The shipping industry was digitized in an unprecedented manner in 2020. Driven by the digital wave, blockchain has become one of the new directions for the future development of the shipping industry.

Both the industry’s blockchain alliance and the blockchain cooperation platform led by external enterprises are constantly exploring and trying in the fields of documents and customs clearance. At the same time, many blockchain applications are also trying to land in the shipping industry.

How long will it take for blockchain to realize large-scale landing and application in the shipping industry?

8. Is regional shipping alliances a trend?

After the formation of the 2M, Ocean, and THE alliances, alliance operation has become the main melody of the shipping industry. So far, the advantages of alliance operation are obvious.

However, because the world’s major liner companies have joined the three alliances, does this mean that the industry concentration can only stop here?

The answer is no. By the end of 2020, several major liner companies in South Korea formed the K alliance, which is a regional alliance, but it also gives some enlightenment to other enterprises. 

9. What is the fate of PIL?

2020 was not a good year for PIL.

In September, its founder, Zhang Yunzhong, died at the age of 102.

In November 2020, PIL announced that it had entered the full implementation stage of restructuring. At the informal meeting of some bondholders, it announced the details and schedule of the comprehensive restructuring plan, and said that the restructuring plan is the optimal solution for all stakeholders, hoping to get the support of all parties.

In the past two years, the fate of PIL has attracted the attention of the industry. According to the plan, the relevant meeting of PIL will be held in January 2021, which will determine whether PIL can survive the crisis and enjoy peace.

10. How long does it take for the shipping industry to completely decarbonize?

Although the global epidemic has not been effectively controlled, the shipping industry’s enthusiasm for energy conservation and emission reduction remains unchanged.

At the same time, the goal of total decarbonization of the global shipping industry by 2050 has been put on the agenda again. Some international and regional organizations are also considering supporting corresponding technology research and development by imposing additional carbon emission fees.

However, the world’s major shipping companies, especially the shipowners, have a strong questioning attitude towards the possibility of “decarbonization” of the shipping industry.

This was a guest post by Paul Zhang.

Author Bio

Paul Zhang is Founder & CEO of FreightPaul, a digital China forwarder. He was recognized as a top shipping expert with 10 years freight forwarding experience and personally served more than 1200 clients over 100 countries since 2010.  Importers like the pretty practical advice and amazing freight tools that Paul shares to simplify their shipping business from China.

The post Top 10 Predictions and Trends of Shipping Industry in 2021 appeared first on Universal Cargo.

Around the world, more advanced information and communication technology (ICT) and Internet of Things (IoT) systems are changing the way we live, do business, and organize our lives and processes.

Like many sectors and industries, import and export is also making the shift to intelligent, data-driven systems and models. Perhaps this is most apparent in ports, the very place where goods are handed over, loaded, and unloaded — and the place that is arguably most important to import and export companies.

We often hear that import/export and shipping and logistics as a whole is an industry that is resistant to change, stuck in the old way of doing things. But today’s smart ports would suggest otherwise.

What Are Smart Ports?

Smart ports are ports that utilize the very best that modern technology has to offer. By embracing IoT, newer ICT technology, artificial intelligence (AI), automation, and blockchain, among others, smart ports are capable of organizing systems and processes in a way traditional ports are not.

Part of a broader move toward smart cities, smart ports are responding to worldwide changes such as geopolitical conflicts, shifting alliances, the speed at which goods ship, and the size of our ships. To meet these new challenges, ports have to embrace digital maturity.

What smart cities are is data-driven hubs that rely upon masses of information to drive better choices and systems, and make processes simpler, cleaner, and easier. And smart ports are the same.

According to Joyce Bliek, the Port of Rotterdam’s Director of Digital Business Solutions, failing to adapt to newer technologies could mean a port is left behind. Bliek further explains how a dual approach that covers both physical and digital adaptations can make a big difference in real-life infrastructure.

For example, building a new quay wall or break wall without the smart analysis digital solutions offer could mean a much more expensive project. Testing a new structure’s functionality before it is built gives clearer insight into its impact on the port as a whole. This is perhaps best seen in the Port of Rotterdam’s “digital twin” model.

Additionally, any money that is saved through the increased digitization of systems is money that can be reinvested into stronger physical infrastructure, meaning a port can further improve its efficiency.

Smart Port Concerns

There’s no doubt that smart ports confer great benefits to the import/export industry, and to shipping and logistics as a whole, but there are some pressing concerns that need thorough consideration.

After Maersk was hit by a devastating cyberattack in 2017, it quickly became apparent that logistics needed to pay better attention to cybersecurity. One simple piece of code brought normally bustling ports to a standstill and crippled operations.  

In smart ports, a greater reliance on digital solutions opens the door to a greater number of potential vulnerabilities. These must be addressed in a proactive fashion and digital systems have to be designed with an extraordinarily strong focus on security.

Port staff members who have any interaction with digital systems also need regular and comprehensive training on the cybersecurity risks that are present. Investing in cybersecurity to this level does carry a financial toll, but it’s one that must be accepted for smart ports to work safely and effectively.

This was a guest post by Brad Smith.

Writer’s Bio

Brad Smith is a technology expert at TurnOnVPN, a non-profit promoting a safe and free internet for all. He writes about his dream for a free internet and unravels the horror behind big techs.

The post The Arrival of Smart Ports Marks a New Era in Freight and Logistics appeared first on Universal Cargo.