by Rob Simmons | Apr 20, 2021 | Delivery, Shipping Logistics, Supply Chain, Transportation, Warehousing
How has the creation of its first automated warehouse led to the growth of Chewy’s warehousing logistics? Chewy is a company that has used its extensive supply chain to deliver pet products across the U.S. At a time where there is a high reliance on e-commerce, Chewy has stepped the warehouse logistics up to meet the needs of customers.
What is Warehousing Logistics?
The definition of logistics itself is the comprehensive planning and execution of a complex process. Warehousing logistics is the moving of goods in and out of a warehouse and everything in between. This may include order picking, storing goods for a period of time, sorting the goods, and other intricate practices.
Different types of warehouses like fulfillment centers, Storage centers, and distribution centers have specific logistics in place. The difference between automated fulfillment centers and regular fulfillment centers is how the goods are processed. Automated facilities rely more on technology to process and move the goods.
Chewy Creates Its First Automated Warehouse.
In October of 2020, Chewy opened its first automated fulfillment center after years of planning. This warehouse is different from Chewy’s previous fulfillment centers in terms of logistics. In the past, workers would manually pick, move, and store the items in the facility. The automated warehouse allows for conveyor belts to move the goods. This saves time and energy. The storage of the goods has also been redesigned for easier access.
The idea behind this automated facility is to quicken delivery and fulfillment while improving worker safety and logistics. The amount of money saved by automation is also an advantage. Chewy’s warehouse system management team is currently examining and analyzing this first automated warehouse in hopes of producing more in the future.
What can this mean for the Future of Warehousing Logistics?
Warehousing tends to be an important part of many supply chains. With Chewy developing its warehousing operations, other companies and corporations may join in on the trend. United Natural Foods has announced that it anticipates that its new automated facility will double picking time. Big lots have also created 2 warehouses that focus solely on the processing of bulky and heavy inventory.
One of the main goals in 2020 for many companies was to protect and strengthen their supply chains. Many companies including Chewy have developed innovative ways to protect against economic downturns. This can include changing their warehousing logistics. If you are looking for a warehouse to store your imported goods and assist with your company’s logistics, call us at 305-821-8995. We have a bonded warehouse facility where your imports can be stored for 5 years without payment of duties.
by Rob Simmons | Apr 16, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
When moving your goods internationally one must be aware of how to prevent mishaps in the customs clearance process. There is a wide range of complexities when getting freight from point A to B. Sometimes this journey may not go as smoothly as planned and your goods may be held in customs. While there are certain incidents that may not be averted like bad weather, there can be ways to ease the process.
What are some potential mishaps that can occur during customs clearance?
When cargo goes through customs clearance, certain situations may create setbacks and elongate the time that the goods reach the final destination. The paperwork may not be completed or correct. The description of the cargo may precise enough to pass through customs. Before the freight even gets to the point of customs clearance there is a small chance that the goods may be damaged or lost at sea. Having insurance on the cargo can be useful if this happens.
How to prevent potential disasters?
Before even shipping a good internationally you must know if the good is allowed to be imported into that country. This may be especially important for companies that are distributing their goods internationally with e-commerce. The shipper must make all the required payments before the goods depart the country of origin. Also, make sure that the goods are classified correctly. For example, there may be goods that are classified as hazmat or hazardous materials.
Another way to prevent mishaps in the customs clearance process is to be detailed when documenting the information. This may include the following:
- Be very precise when describing what is being imported such as having the correct dimensions. (length width and height)
- Have a good estimate on the total value of the product that is being moved.
- Make sure all the necessary documents are properly filled out. This can include forms such as the Bill of Lading, Commercial invoice, etc.
Find a good Customs Broker
One of the greatest ways to make sure that the customs clearance process goes smoothly as possible is to find a good customs broker. A customs broker acts as an intermediary between the importer/exporter and governing customs bodies. They make sure that all the requirements are met for international goods. When looking for a customs broker it is important to look for someone that has familiarity and experience with the process. It may also be beneficial to check if they have good reviews.
The customs clearance process can be tedious and daunting, especially if it’s your first time doing it. However, knowing what you’re doing can save time and energy. If you Are looking for a customs broker or want to know more about the required documentation needed when going through customs clearance, call us at 305-821-8995.
by Rob Simmons | Apr 6, 2021 | Delivery, Freight Forwarding, Shipping Logistics, Supply Chain, Transportation
How does the Suez Canal Congestion affect the ships carrying freight and supply chains? During a journey through the canal, the Ever-Given container ship was moving through a sandstorm. The rough winds turned the ship sideways and lodged it in the canal. This created a domino effect that has lasted a few days and may continue on for much longer. Although the ship has been successfully released, there may still be an aftereffect.
The Importance of the Suez Canal.
Created over a century ago, the Suez Canal is known as one of the most important passageways for shipping freight globally. After many attempts to connect the Red Sea to the Mediterranean Sea spanning thousands of years, the first successful completion happened in 1869. Freight vessels have been using the canal as a shortcut from Asia to Europe and vice-versa ever since. Today, the canal is used as a convenient shortcut sailing by South Africa. Around 50 ships pass through the Suez Canal on a daily basis.
The Chain Effect of the Trapped Vessel on Supply Chains.
When freight is moved internationally, there can be many components that contribute to the distribution of the freight. When one component is disrupted, it may trickle down to other parts of the supply chain. In the case of the Suez Canal, the Ever Given vessel blockage resulted in over 300 ships being restrained by Sunday. This means that the ships may not make it to their ports in time which means that the freight may not reach the endpoint in time. Which can look unfavorable to the companies distributing the goods.
The Ships that were impacted contained thousands of containers each. Companies like Ikea and Walmart also depend on the Suez Canal when moving their freight. The total monetary cost of this incident is yet to be determined. This may be extensive nonetheless, depending on how much the supply chains are strained.
Now that the Ship is Freed, what is next?
On Monday, the Ever Given ship was released and allowed for the resuming of Vessel activity. But with the delay already creating a large backup, it can take a while to clear. The vessel itself will first be sent to Great Bitter Lake for damage examination. With the canal still backed up, freight forwarders and shippers are looking for other passageways to move their freight. Some carriers are taking a lengthier route and going through the Cape of Good Hope in South Africa Instead.
As of today, the ports that the ships were on their way to have not been affected greatly. This is because the vessels that were blocked by the canal were planned to arrive on a later date. The ports may see an increase in volume in the coming weeks, however, it may be too soon.
A1 Worldwide Logistics
Are you planning on moving freight and need a forwarder to aid you? Feel free to contact us at 305-821-8995 . We also provide customs clearance services to clear your freight when it enters the country.
by Rob Simmons | Mar 30, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Delivery, Freight Forwarding, Shipping Logistics, Supply Chain
After over a year of stagnant to moderate business, we may be seeing a return to regularity for air freight similar to pre-Covid-19 levels. Associations such as the International Air Transport Association (IATA) and the Association of Asia Pacific Airlines (AAPA) both had positive outlooks for 2021. The IATA has noted that in January of 2021 the demand for air freight was still 3.2% lower compared to January 2019. This is before the coronavirus was announced as a global health emergency.
Despite this, the 3.2% was still higher than the 4.0% decrease in air cargo demand in December 2020, showing a small increase. It was also reported that the Asia-Pacific region’s internal load factor in January 2021 was 74%. This is a positive sign meaning that air freight is returning to high levels of demand for that region.
How does the ocean freight market affect this?
In late 2020, port congestion occurred in numerous ports across the U.S. Particularly on the west coast. Freight shipments were backed up for days and even weeks. The cause of this is the sudden surge in e-commerce due to the pandemic. With stores being temporarily closed and restrictions being put in place, online purchases became the easier alternative. The issue arises from the overwhelming amount of e-commerce purchases.
When goods are purchased online, they may be brought in internationally. The freight that was imported into the U.S. exceeded expectations and caused congestion in ports across the nation. Companies started to move their freight by air to combat the delays. Different aircraft manufacturers adapted and released planes solely for air cargo. In turn, the market for air cargo has managed to stay afloat and still growing today. Despite the pandemic inhibiting business for aircraft manufactures, a new lane arose where profit could be made.
Will Transportation fees move up?
As previously mentioned, the demand for air freight has seen a steady increase compared to Mid-2020. Comparatively, the freight capacity has not yet grown to meet the demand due to the regulations still in place in the industry. Airfreight companies have taken advantage of this and hiked up their rates in response. With how volatile the market is at the moment; it may be too early to tell what the future holds in terms of pricing.
Boeing to produce more planes.
The positive forecast for the air freight industry extends far past 2021 for many companies. In response to the demand, Boeing stated that during the next 2 decades, over 4000 airplanes will be made for the Southeast Asia region. This is part of the 40000 new airplanes that Boeing projects on needing over the next 2 decades. This includes the 2000+ airplanes that Boeing projects will be needed for the cargo industry.
A1WWL
If you are looking for a freight forwarding company to assist with your supply chain needs, do not hesitate to call us at 305-821-8995. We assist with air and ocean freight for both imports and exports.
by Rob Simmons | Mar 26, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Supply Chain
Since the middle of last year, vessels sales have seen a steady increase. In correlation, shipping stocks from container and dry bulk sectors have also seen growth with tankers following the trend in early February of this year. While some believed that the stocks would slow down due to the coronavirus, more people bought goods that were shipped overseas internationally, which raised the demand for ships to move the freight and rose the prices of shipping stocks. That growth has accelerated even more in early February with several stocks from the dry bulk and tanker sectors reaching an over 30% increase.
How Does the NAV Correlate to the Shipping Stocks?
The net asset value can be described as the value of a company determined by subtracting the total asset value by the liabilities. Shipping stocks have tended to trade at a discount relative to the NAV over the past decade. Likewise, the asset value of the ships also tended to be greater than the rate to charter a ship. This meant that the value of the actual ships was higher than the value they were trading for on the market. Recently, the opposite effect happened where the rate for chartering a ship was higher than the asset value of the ship, which may explain why the shipping stocks rose in early February.
Potential Reasons for the Increase
A theory proposed for the sudden rise in shipping stocks in early February is that retail investors may have run up the price of the stocks similarly to how the price of the GameStop stock rose in January but not to that extent. Another theory is that stockholders are predicting that a global economic recovery may happen later this year. With various vaccines being rolled out at a remarkable rate and restrictions slowly being lifted, investors are preparing to take advantage of the profit opportunity.
A Sign of Things to Come
The coronavirus pandemic causes an economic shutdown and a halt to businesses globally. Over a year after the pandemic was announced, we are still feeling the effects around the world. Many could believe that we are at the beginning of an upturn. It is interesting to note that compared to other shipping stocks, tankers tend to do poorly but have been performing well recently. The purchasing of stocks in the tanker sector has increased alongside dry bulk and container sectors for the first time in over a decade. The growth of Shipping stocks may be a leading economic indicator showing a return back to normalcy.
A1WWL
The world of international shipping may sometimes be tricky without the right guidance or information. If you need assistance with your shipment or want to know more about shipping freight by means of the vessel, contact us at 305-821-8995.
1035 NE 125th St Suite #320, North Miami, FL 33161.
a1worldwidelogistics.com
(305) 821-8995
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