by Rob Simmons | Jan 14, 2021 | Customs Broker, Customs Clearance, Freight Forwarding, Shipping Logistics
On January 31, 2020, the United Kingdom left the European Union after a referendum vote to do so. With the high amounts of goods that get transported between the EU and the UK, there is uncertainty about how Brexit will influence the distribution of the goods from start to finish. The companies directly affected may have to find innovative methods of adjusting their supply chain for this event.
The Economy
With the UK splitting from the EU, the impact on the economy largely depends on how close the countries are after Brexit. If the countries in the UK and EU do not have a strong working relationship, this may negatively impact both sides. A free trade deal was reached on December 24, 2020, which allowed for no quotas or taxes on goods being traded. Despite this, there still may be new paperwork introduced.
Delays
The UK’s border procedure will be changed to reflect Brexit. This can potentially lead to delays in supply chains by creating a lag in the freight forwarding process. A decrease in freight imported between the U.S and UK has already occurred in the past month and may continue for a period. The new paperwork requirements imposed may also create trade barriers between the UK and EU.
Businesses
While new tariffs are not being introduced, new paperwork and regulations may be imposed on UK countries doing business in the EU. This is because with the UK departing, their businesses may be viewed as separate importers/exporters instead of members of the EU that follow the same policies. To combat this, companies from the UK may hire workers or do manufacturing in their own countries instead of outsourcing from a country in the EU. This may not only help protect against delays but also reduce costs by insourcing.
Solution
Companies directly involved with Brexit must make sure that their whole supply chain processes are monitored for any defects. The technology used must be up to date and provide for direct interaction between each part of the process. This should help protect against any new change imposed by Brexit quickly and effectively. If you need help with your supply chain process call us at 305-821-8995, we assist with international imports/exports and provide the documents needed for customs clearance.
by Rob Simmons | Jan 6, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
A convenient way to move your cargo around the world is by air. It is a dependable and quick method of transportation that is favorable in the eyes of the receiver of the shipment. While transporting your freight by air is advantageous, there is a cost rate associated with this method of conveyance. This rate varies depending on different factors that are important to be aware of when getting your air freight to its destination.
Chargeable Rate
This is basically the weight of the cargo and there are two methods used for calculation. The first method is the dimensional weight, which is is the total volume of the freight calculated by multiplying the length, width, and height then dividing it by the total volumetric factor. The other method use is the actual weight of the freight. When calculating, carriers use the higher of these two methods to determine the rate.
Extra charges
The base charge can be one component in determining the total cost of your shipment. There are more fees to be aware of:
Fuel Charges – This is a charge that different means of conveyance charge for gasoline fuel prices. Gas prices tend to fluctuate due to availability and demand, to defend themselves from a loss in profit the carriers add a fuel charge to the base rate of the cargo journey.
Airport Security Charges – Before the freight is loaded on the aircraft it must go through cargo screening requirements to determine any potential threats. Security surcharges are administered to cover the cargo screening This process happens both before the freight leaves the departing airport and once it reaches the landing airport.
Cargo Insurance – During the journey damages and losses can sometimes occur to the cargo unexpectedly. When this happens, the shippers of the cargo are accountable and not the air carrier responsible for the damage. To protect against the monetary loss, shippers pay for insurance before the journey. Cargo insurance may not be required but is recommended.
Customs Clearance Charges – In international trade there are charges for having your cargo exported/imported into a country. The charges come from the documentation that is given to the CBP before the shipment can be processed. If you are looking for a Customs broker to give you an understanding of the customs clearance charges or have freight that needs clearing call us at 305-821-8995 or you could send us an email at info@a1wwl.com.
by Rob Simmons | Dec 30, 2020 | COVID-19, Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
2020 has been one of the more interesting years in recent times, the coronavirus has left an impact on the logistics of different supply chains globally. Many companies had to adapt their distribution and freight forwarding methods to accommodate the pandemic and the economic downturn. Despite this, an opportunity for learning also arose.
Preparation
This year came as a surprise to many companies that had to suddenly stop or limit their production due to lockdown. With no production, revenue will not be generated, and companies may close due to bankruptcy. Numerous businesses closed various stores across the nation because they were not ready to handle such a situation. Planning means having a contingency plan in case a catastrophic event like the coronavirus occurred.
Using More Digital Supply Chain Technologies
Being up to date with the current happenings of your supply chain can save time and capital loss. With employers in quarantine, this task became more demanding than before. The solution was to have workers do their jobs remotely. The current progress in working remotely may lead to a greater reliance on overseeing and communicating with the supply chain digitally in the future.
Being Creative Amidst the Chaos
One of the biggest lessons that can be learned from the pandemic is how to be innovative during uncertain times. Many different techniques were used to keep the supply chain processes running, here are a few examples:
- Diversification: The economic downturn created a scenario where jobs had to expand their services to combat the current situation. Restaurants started to sell take-home meals for the first time and breweries started making hand sanitizer from ethanol.
- Reshoring: When a supply chain is spread out across different countries or continents, the time it takes to allocate the goods to the required destination may be longer than if the goods were in-sourced from the same area. Especially with the current shortage of production, reshoring can help speed the process.
- Remodeling: Instead of diversifying or reshoring, some corporations renovated their whole supply chain. Suppliers and vendors were substituted for cheaper means of distribution and methods of transporting freight were changed from ocean to air or land.
A1WWL
Navigating the logistics of a supply chain may sometimes be difficult and confusing to do without proper guidance. A1 Worldwide Logistics is a customs brokerage that is here to make that process easier. Call us at 305-821-8995 for your freight forwarding or customs brokerage needs.
by Rob Simmons | Dec 23, 2020 | Customs Broker, Customs Clearance, Delivery, Freight Forwarding, Shipping Logistics, Transportation
When a person usually thinks of direct shipping, they usually picture a fast and convenient method of getting goods to their required destinations. It is seen as a favorable option to order something online and having it mailed directly to your house in a few days. Also, with the Covid-19 pandemic still bring present it also appears to be the safer option than going to the store to purchase your product. With that said, there may be several disadvantages when dealing with direct-to-customer shipping.
Logistics
The supply chain process of getting goods to their required locations may not always go as perfectly as planned and different factors may impact the logistical journey. If the delivery of the product is not up to par or takes too long, the company delivering the product can be seen negatively in the eyes of the customer. Customs brokers help simplify the process by being the middleman between the company and the customer. They also help make sure that the shippers follow the FDA regulations.
Customs Clearance
The costs that are accrued during the freight forwarding process can affect both seller and the person buying the product. If the seller is a small-sized company and not that big, the shipping costs can be higher than shipping from a company like Amazon. The customs clearance charges may also have an impact on the costs. If you have any questions about customs clearance or need help with the logistics of getting your product to the required destination feel free to contact us at 305-821-8995. We are here for your freight forwarding needs.
Insurance
The common perception is that direct shipping is quick and convenient, but the opposite can happen as well. When a product is forwarded to its respective locations directly, damages to the cargo can sometimes occur. Cargo insurance is a common method to protect against these kinds of damages. There may be a cost incurred but it is small compared to the cost of cargo loss due to damages.
by Rob Simmons | Dec 17, 2020 | Freight Forwarding
Over the timeline of a few hundred years, technological developments in freight forwarding have holistically affected the process in positive ways. A recent trend has been the usage of technology in different aspects such as warehousing, shipping, and vehicle transportation.
Automation
Each of the variety of aspects of the supply chain is slowly transitioning into automation. In warehouses, it is becoming more common for storage handling such as scanning, lifting, and moving to be done by technology. Also, more of the conveyance means to get to the warehouse are becoming self-automated such as self-driving cars.
Time
What used to take longer in the freight forwarding process is being shortened thanks to advancements in technology. Humans work for a certain number of hours a day and may take time off. Machinery does not have these limitations and can work without needing to take a break, which leads to a higher output in a shorter period.
Expenses
Unless you are working for a charity, you are going to want compensation for your labor. Automation may be cheaper than the average worker because it does not require a salary. The only costs they need are for development and maintenance. The advancements in machinery have also made it possible for technology to do much more tasks for less amount of money than in the past.
Jobs will be lost
The issue with automation is that the jobs that were done by humans in the past will be done by technology that can do the same job in a quicker and more accurate way. On a large scale, this can lead to the loss of millions of jobs. An example of this previously mentioned can be self-driving trucks becoming more common in the freight forwarding process. More truck drivers may become jobless as more vehicles become self-automated.
Jobs will be Created
Despite the jobs that will be lost, new jobs will be created in their place. There must be someone there to engineer and watch over the machinery in case of malfunction. Also, with technology influencing a certain part of the supply chain process, humans can focus their attention on and create jobs for other parts that need improvement.
A1WWL
If you need help with all your international freight needs or would like to get a quote for your shipments, feel free to call us at 305-821-8995 so our customs brokers can help you.
1035 NE 125th St Suite #320, North Miami, FL 33161.
a1worldwidelogistics.com
(305) 821-8995
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