by Rob Simmons | Apr 22, 2021 | Customs Broker, Freight Forwarding, Import and Export Experts, Shipping Logistics, Supply Chain, Technology, Transportation
French company Compagnie Fluviale de Transport (CFT) plans on launching the first hydrogen-powered freight vessel later this year. This vessel will solely be for inland use and run fully on hydrogen fuel cells. Pallets and containers will be used to carry the freight on the boat, and it will go through the Seine river. This is all part of the Flagships project, which goal is to reduce toxic gas emissions from freight ships. Five million EUR has been given to the Flagships program for the creation of two hydrogen-powered freight vessels. One of which is currently scheduled to be released in September 2021.
Why Hydrogen-Powered?
Since the development of cargo ships, they have been a huge resource for moving freight internationally. The issue arises when it comes to the pollution that cargo ships generate. Not only may the ocean be polluted during the journey, but greenhouse gases are also being emitted into the air. Add to that the number of cargo ships in the ocean today and it can be a source of concern. Hydrogen is a perfect solution because it does not create the waste that bunker fuel does.
Bunker fuel is currently the main type of fuel oil vessel that carries freight internationally use. This type of fuel is dangerous for the environment and is known as the second leading contributor to global warming. Also, it is predicted that the wells that provide oil will dry up and be unusable in around four decades. Because of this, new energy sources like hydrogen and other renewable energy are an ideal replacement.
What can this mean for the Future?
At the current moment, the plan for the vessel is to just carry freight through the city by inland water channels. If this is successful it may open the gateway for creating hydrogen vessels for the ocean. However, developing a larger hydrogen-powered cargo vessel for the ocean may be a difficult task. This is because Hydrogen is not easily storable. The cost of producing hydrogen is also expensive compared to fossil fuels. Plus, refueling stops for hydrogen-powered ships will also have to be built, costing more money. Despite this the potential benefits of hydrogen as a widely used fuel in the future are grand.
This may be an example for not only freight-carrying vessels but other sources of climate change as well. Car companies may follow along and hydrogen-powered vehicle production may become more common. Hydrogen vessels could be the start of a greater push to a more environmentally friendly future. If international emission reduction goals are to be met worldwide, freight shipping is an important factor.
A1WWL
If you plan on exporting/importing freight, feel free to contact us at 305-821-8995. We have freight forwarders who specialize in getting your goods to the final destination. Along with forwarding by air or ocean, we also provide drayage services.
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 | 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.
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.
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