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 | Jan 29, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
Known for being one of the leaders in e-commerce, Amazon may be seen by many as a convenient way of buying goods that are delivered in a timely manner. Recently it has been announced that Amazon has bought 11 Boeing 767-300 aircraft. The plan is for these aircraft to be converted to freight carriers which will not only increase the airfreight capacity but also shorten the time of delivery. This will also help Amazon honor its motto of one-day delivery more smoothly.
Amazon Air
In 2015 Amazon launched Amazon Prime Air but shortened its name to Amazon Air in 2017 to distinguish itself from Amazon’s drone delivery. Since its start in air operations, Amazon would lease planes from different companies but in 2020 it bought its first planes from WestJet. The difference between Amazon Air and their previous method of using air as a conveyance for freight is that there is no dependence on 3rd party logistics for delivering cargo. This meant that Amazon had more direct control over its supply chain.
Why the Sudden Purchase?
In the year 2020, the travel business experienced a hit due to the coronavirus pandemic. Restrictions on flight and people not traveling for safety reasons led to losses of funds for airlines. Various airlines reacted to this by removing several aircraft from their services. At the same time, online shopping increased substantially because of the pandemic. Knowing this, Amazon took advantage of the situation and purchased the aircraft to turn them into freight carriers.
Amazon air currently has a fleet of 66 air crafts but with the purchase of the Boeing 767-300’s plus a previous announcement last June that Amazon plans on leasing 12 aircraft from the Air Transport Services Group (ATSG), the total amount of carriers may exceed 80 by the end of this year. The idea is that by 2027, they want the total fleet to grow to 200. Amazon’s land delivery system is not as large scale compared to UPS or FedEx. Despite this, Amazon Air’s network of planes and hubs may one day develop to resemble the land delivery system of those companies.
What Does the Future Hold?
With Amazon continuously growing, this air carrier purchase is a small component of their plan for expanding operations. Amazon Air currently transports cargo to dozens of airports in the U.S. with its main hub located in Cincinnati/ Northern Kentucky International Airport. However, in November of 2020 Amazon Air opened an international hub in Leipzig/Halle Airport in Germany. which is the first of its kind. Amazon plans on opening several different air hubs in the future, widening its reach to deliver fright in a more accelerated time than before. If you have freight that needs to be transported internationally and needs help with the logistics, give us a call at 305-821-8995 or email us at info@a1wwl.com.
by Rob Simmons | Jan 28, 2021 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
Have you ever gotten a notification saying that your cargo has been rolled? When a cargo has been rolled, the vessel that it was supposed to be loaded on rejected the freight for various possible reasons. This can disrupt the freight forwarding process by having the shipment arrive at its final destination at a later time than expected. When this happens, the following available carrier takes the cargo but there is a small possibility that the freight may be rolled off that vessel as well.
Recent Cargo Rollovers
Ocean ports around the world have been experiencing rolled freight due to the high volumes of cargo. In December of 2020, certain ocean carriers rolled close to half of the cargo that was scheduled for delivery. With the holiday season with coronavirus making goods being ordered online more convenient, we have an unprecedented number of shipments being made. The issue is that this is also leading to a record amount of rolled freight. Which may not look favorable to the manufacturers, carriers, and receivers of the shipment. However, the amount of rolled cargo is anticipated to drop in the coming months.
Why Do Cargo Rollovers happen?
Numerous aspects can impact your cargo not being loaded on its designated vessel. One of the more common situations is that there is no space because the vessel has already been overfilled with containers. The freight carrier itself also may have a technical problem and might have to be worked on. Another occurrence that can happen is that the pathway of the vessel can change and miss the port completely. This happens due to a vessel being behind its schedule or bad weather by the port.
How to be Prepared?
While there are those circumstances that cannot be controlled, there are ways to be better prepared in the scenario that your cargo gets rolled. Reserving your shipment to an earlier date may help mitigate your shipment from coming in late, even if your freight is rolled. If the situation is because of issues with paperwork, having a customs broker can assist you with the process. We at A1 Worldwide Logistics not only have customs brokers to help with customs clearance, but we also provide freight forwarding solutions for unexpected situations occurring. Give us a call at 305-821-8995.
by Rob Simmons | Jan 22, 2021 | COVID-19, Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics
Over the last few months, Ports in the U.S have reached record import volumes. The ports of California, in particular, have seen an unprecedented amount of congestion due to the number of imports. While this started around September of 2020, it may continue through February of this year. The reason for this overcrowding traces back to various of different causes that directly relate to each other.
Coronavirus – The effect of COVID-19 was felt on separate parts of supply chains globally, including the arrival of goods to their designated ports. The port facilities have seen a decrease in the number of workers available due to the virus and with a large number of imports, the delivery and pick-up time is prolonged.
E-Commerce – A direct effect of the coronavirus is that instead of going directly to the merchandise store to pick up goods, people realize that it is safer to shop at their own homes. This, in turn, may lead to goods being bought online and imported from different countries. In California’s case, many goods that customers bought were imported from China. This, in turn, created a buildup at the ports.
Equipment Shortages – Lately, there has been a decline in the amount of chassis available for truckers, likely due to the economic downturn in 2020. A chassis is the frame of an automotive vehicle to where the body is attached to. Trucks use the chassis to load containers and drive them to the warehouse.
Trucker Shortages – Over the past few years, the amount of truck drivers on the highways has gone down. The recent Covid-19 pandemic also impacted this situation because with the increase of freight being imported, the number of truckers is not enough to keep up with the load. This leads to the piling up of containers at the port which may create certain surcharges on your freight.
Demurrage and Detention – When a container stays in a port after a certain period of time without being picked up, demurrage fees can occur. This may also lead to detention charges, which is the use of equipment such as containers and chassis for an extended period of time.
A1 Worldwide Logistics
Navigating your supply chain may not always be a simple process. We help ease this by giving customized one on one assistance to our clients. Our services range from freight forwarding to customs clearance and more. Call us at 305-821-8995 or email us at info@a1wwl.com for more information.
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.
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