by Rob Simmons | Mar 5, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics, Supply Chain
A recent trend that has popped up in the last few decades is the invention of 3D printing. Instead of printing a 2D picture into a piece of paper, 3D printing is when the picture is printed as a solid object. With all of the potential growth that it may have for the logistics industry, it may also have a negative effect.
Positive Impact on the Logistics Industry
Since logistics are the obtaining, manufacturing, and distributing of goods to the public, 3D printing can potentially simplify this process. This is because the products could be produced directly, near a company’s office instead of being brought in from a different country. Time and capital are saved, and the company has greater control over the manufacturing of the goods. This also means that the supply chain itself may become faster.
Greater customization is also possible since the goods are produced digitally and can be individualized for the customer. Another positive result of 3D printing is that the waste created from the production of a product will be reduced. Regular manufacturing tends to leave out excess waste but since 3D printing uses the necessary amounts of materials such as synthetic resin and plastic, no material is left unused. And on a large scale, this can be greatly beneficial to the environment. The need for warehouse storage can also be reduced since the production of goods can be on-demand or when needed.
Negative Impact on the Logistics Industry
A section of the logistics industry that may be negatively impacted is the freight forwarding industry. The job of a freight forwarder is to coordinate the shipment of goods internationally and this can change with 3D printing. Many of the goods that are produced today out outsourced from different countries. Since 3D printing allows for direct insourcing of a good, the number of freight forwarders can decrease. Similarly, the number of customs brokerages may be lowered because goods produced inside their own country do not necessarily have to go through customs.
Having to go through customs is also important for security reasons because one task of a customs official is to look for potential threats to a product. Since 3D printing allows for insourcing, certain safety requirements may be overlooked. Although 3D printing is growing, it is not sizable enough for the mass production of goods and products. The method of having goods produced overseas and being brought over with the assistance of a freight forwarder may still be favorable if your company produces a large number of goods.
by Rob Simmons | Feb 26, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Delivery, Freight Forwarding, Shipping Logistics, Supply Chain, Transportation
Sometimes referred to as hazmat, a shipping hazardous material can be described as any material that may pose a potential threat to safety, health, and the environment. Because of this, there are specific regulations that have to follow when shipping these types of goods. The rules may differ relative to the method of conveyance, but we will focus on air and ocean freight.
Shipping by Ocean
The International Maritime Organization sets the safety and security measures for international freight moving across the ocean. The IMO categorizes hazardous goods into various classes and some of the classes are grouped further into divisions with the class. For example, class 2 contains dangerous gasses and division 2.2 contains non-flammable gasses. Along with the typical documents that are required when shipping freight internationally, additional information such as the declaration of hazard goods, classification, and emergency phone numbers are needed for shipping HAZMAT.
When the hazardous freight is transported on the ocean, it may be in a large bulk which requires that the handling of the freight is very distinct. This can mean that that the HAZMAT cargo is separated from the rest of the cargo. The workers on the ship may have to report the details of the goods to the maritime authorities before entering the destined port.
Shipping by Air
The International Air Transport Association is responsible for setting the regulations for safety for transporting goods by air and similar to the IMO, has classifications that the hazardous goods being transported fall into. To verify if your freight is hazardous acquire a Safety Data Sheet (SDS) which can usually be obtained by the manufacturer of the goods being shipped.
When transporting, the packing is set into various groups from 1-3 depending on how much packaging is required with 1 being the highest amount. Supplementary info is also needed for hazardous airfreight and the goods may not be allowed on the aircraft if the authorities do not have proper documentation.
A1 Worldwide Logistics
Navigating the world of international freight may sometimes be challenging, even more so if you plan on transporting hazardous goods. If you want to understand the necessary requirements or are planning on shipping materials that would be considered hazardous, contact us at 305-821-8995 to help you out.
by Rob Simmons | Feb 24, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Delivery, Freight Forwarding, Shipping Logistics, Supply Chain, Transportation
CMA CGM is known as one of the leading shipping companies which ship to 420 different ports around the world. Recently with the purchase of four A300-200F freighter aircraft, CMA CGM will begin the launch of its air cargo division. This acquisition will add to CMA CGM’s already wide reach by providing transferring of goods by air. In a time where businesses are looking for suitable and more accommodating approaches for moving goods around, this branch will offer an answer to many challenges in freight forwarding.
CMA CGM
Since its beginnings, CMA CGM has always been known as a company that moved freight by ocean and land. It soon became world-renowned for its shipping services and is currently the fourth largest shipping company in the world. In 2020 it was announced that CMA CGM bought a 30% stake in DUBREUIL Aero which is an airline company located in France. The reason being was to create a working relationship between the two companies and to give CMA CGM entry into the air freight sector.
When the buying of the four Airbus A330-200F aircraft was revealed, it was simultaneously made public that CMA CGM would create an air cargo division. The addition of its air division and its partnerships with several airlines will lead to the cultivation of a new area of logistics for the company.
Why Air Cargo?
Air Cargo can be considered a convenient method of conveyance for moving freight because of the quickness of time that it takes to transfer the good to the allocated location. Also, when cargo is transported by air there is a wide range of locations that it can be delivered to. With the increasing need for quick and easy logistics solutions by clients, CMA CGM understood that it needed to grow to meet the needs of its customers.
What does this mean?
Importantly, it paves the way the way for potential growth of not only the company but the industry as a whole. In January of 2021, Amazon bought its first aircrafts after leasing them since 2016. Currently, Amazon plans on having a fleet of over 70 by the end of 2021. Although CMA CGM never leased an aircraft, this purchase can be the beginning of a larger expansion and may possibly resemble Amazon’s fleet one day. With the world becoming more interconnected, many other shipping companies may follow along and open the door to a possibility of new alternatives to moving freight around the globe.
by Rob Simmons | Feb 18, 2021 | Customs Broker, Freight Forwarding, Shipping Logistics, Supply Chain, Transportation
When discussing the aspects of the supply chain, the final mile commonly tends to appear in the conversation. What may be talked about less but is equally as important is the first mile. This can be described as the goods being moved from the producer or wholesaler to the courier. The courier is the carrier or the method of conveyance that transports the freight to the designated location. There are different components of the first mile to be mindful of when transferring goods in a supply chain.
Importance of the first mile
The first mile is usually known as the initial 120 days and sets the tone for the rest of the supply chain. Without proper attention to issues in the first mile, the issues may have a snowball effect and become larger problems for the rest of the supply chain. Before the goods even leave the original facility, the sellers should make sure that there are enough materials in the facility to create the necessary amount of goods to be sent to the customers.
Challenges in the first mile
Like other parts of the supply chain, there can be obstacles to be aware of. When cargo is transported out of the facility of origin, the packaging that is used must be strong enough to withstand long distances. This helps prevent the chances of your customers receiving damaged goods.
If your cargo is being transferred internationally, the correct paperwork needs to be sent to the customs of another country, usually done by a customs broker. Not sending the correct paperwork initially can lead to the freight being detained in customs for a certain period of time drawing out the later parts of the supply chain. That may look unfavorable to the customers of your company and lead to potential monetary loss.
How to have a strong first mile
One of the most crucial aspects of the first mile is having strong communication between all of the parts. This could include having a digital transmitting of all the required documentation to have quicker contact and to spot any issues in real-time. Planning ahead can also help lessen problems such as traffic and congestion. Having the correct labeling with all the required information on the packages being delivered to the courier can help lower delays as well.
It is important that the first mile is valued as much as the last mile and every other part of the supply chain. If you need assistance with any part of your supply chain including the first mile, contact us at 305-821-8995.
by Rob Simmons | Feb 12, 2021 | Shipping Logistics, Supply Chain, Technology
As many aspects of the world’s supply chains are increasingly becoming more digitalized, the chances that your company’s supply chain is at risk of cyberattacks may also be rising. Criminals understand that most businesses operate by computer and see it as an ideal place to strike. Ignoring these types of attacks may potentially be a threat to the confidentiality of your company and cost thousands to millions in profit. The cost that it will take to get your business running back to normal may also be immense.
How does it happen?
When planning a cyberattack, hackers tend to look for points of easy entry. This could be a phishing scam which is a mass email sent to employees or seeable passwords that give entrance to a company’s system. The entry into a company’s system may not only be directly but indirectly from a third-party source. For example, if your company is in constant communication with a supplier company, a hacker can get classified info by secretly monitoring conversations between the two and intercepting private info. Another example where this could happen is if a customs broker is in contact with a client online that needs assistance with freight forwarding. Unknowingly, Information about the freight may be accessible to a discreet hacker. A person that works for a business may also leak private information from their database for their own self-interest. Other methods of cyber threats include:
- Ransomware – This kind of malware blocks access to your computer until a fee or “ransom” is paid.
- SQL Attack – A hacker adds a dangerous SLQ code to a database to control and take private company information.
- Trojan Horse – This is a type of malware that conceals itself as a regular file but when downloaded, can take financial info.
Lowering the risks of cyber attacks
Employees must have a good understanding of how cyberattacks happen and have knowledge of what they can do to prevent these risks. Third-party suppliers to a company should be educated on the risk of cybercrime as well. It is also important for companies to make sure that their suppliers are secure by holding them up to a standard to comply with. Security processes should be updated frequently. This is because cyberattacks methods such as viruses and ransomware are constantly changing. System passwords may also have to be changed regularly and be intricate to prevent password attacks.
For the scenario that a cyberattack does occur, a contingency plan can be put in place which details the course of action being taken and who to contact. Some companies even create cyber-crisis jobs to protect against risk. All parts of a supply chain are holistically intertwined to achieve a particular goal and the right steps should be put in place to avert any hindrance to that goal such as cyberattacks.
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