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.
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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 | 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 10, 2021 | Delivery, Freight Forwarding, Shipping Logistics, Transportation
Have you ever heard the story on the news that goods from a truck were stolen or had it happen to one of your acquaintances? Compared to freight that is carried by air and ocean, trucks may have the highest risk of potential theft. This is because, with the other two methods of conveyances, freight tends to be less accessible to the public and more protected. The goods that are robbed have a wide range in variety, but food and household goods tend to be common commodities. Although this crime tends to happen around the world it is a more common occurrence in Mexico and Brazil.
How does this happen?
A truck driver may stop various times on their way to the warehouse and the trip can last a few days. When the driver parks at a gas stop and leave the vehicle to go into the rest stop, they can sometimes make the mistake of leaving the truck running. Thieves see this as an opportunity to not only take the truck, but also the goods. Even before the journey even starts, the robbers have the route of the truck mapped out from the pickup location to the warehouse. This can mean that when the truck arrives at the destined warehouse, the robbers that have been following the truck on its trip are also at the warehouse. They then just take the cargo and drive off.
Other common methods of truck cargo theft include:
- Counterfeit pickups – When freight reaches a port or a container terminal, the truck driver arrives to pick it up. A robber faking as a truck driver can go to those facilities and provide fake paperwork to gain access to the cargo.
- Digital Theft – Computer hackers may get into a company’s computer system and steal valuable information such as drop-off and pick-up locations. This can also help them do counterfeit pickups because the hackers may use the company’s system to print out the fake documents to show the pickup facility.
- Driver Participation – This is when the individual driving the truck gives a portion or all of the cargo to a burglary operation. This is usually done for compensation, which is typically money.
What can you do?
First off, it is important to know that truck cargo theft may be common, and anyone is susceptible to it. The individuals involved in the supply chain must implement preventive measures in case such a scenario occurs. This could mean a safety camera installed on the trucks, GPS cargo tracking, or alarms. Trucks are an important means of conveyance for goods and it is important that the goods are safeguarded throughout the voyage. If you have any questions about our trucking services or need a quote call us at 305-821-8995, we provide constant updates on your cargo.
by Rob Simmons | Feb 5, 2021 | Delivery, Freight Forwarding, Import and Export Experts, Technology, Transportation
Recently, Coca-Cola partnered with DroneUP to deliver their coffee-flavored soda by drone to customers of Coffee County, Georgia. In the past, drones have been discussed as an alternate method of conveyance for lightweight packages that are delivered on the same day. Amazon is a company that brought more awareness to this type of transport with Prime Air. Also, with how popular e-commerce has gotten over the past decade, other companies have followed the trend. With the potential of freight being moved by drones becoming more common, what could be some pros and cons with drone delivery?
Benefits of Drone Delivery
One of the main benefits of using drones is the swiftness of the delivery. Clients can expect their packages in less than a day or in Amazon’s case, in 30 minutes. Shipping costs may also be reduced for last-mile deliveries. Unlike more common methods of conveyance, drones have the advantage of going into distinct places such as rural areas. There is a particular number of locations that cannot be delivered by road. Also, most road vehicles emit carbon dioxide into the air which makes drones more environmentally friendly.
Issues with Drone Delivery
Despite the benefits associated with drone delivery, there have been several complications associated with this method of conveyance such as regulatory regulations. For instance, the Federal Aviation Administration may not give certain companies the approval for the usage of drones as a delivery method. Also, customers may worry that damages to the packages may occur in unfavorable weather conditions or even burglary.
Another issue is that with everyday tasks becoming more automated, drone delivery may replace various jobs. Likewise, drones can also lead to jobs being created. Employees may have to be hired to build and program the drones. Another concern is that the privacy and security of the customer can be affected. Technology such as cameras and GPS will have to be put in place to mitigate any goods being stolen and to guarantee customer protection. Stringent regulations may also be needed to ensure security.
What’s Next
The emergence of drones opened possibilities for new technological advancements in freight forwarding. Currently, drones are only used for small packages that tend to not weigh a large amount and for short distances. What lies ahead could possibly be larger drones that carry heavier freight for greater distances. UPS also plans on collaborating with Verizon to test out the usage of 5G for delivering packages. This partnership may lead to innovations in other aspects of the supply chain for delivering goods to the customer efficiently.
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.
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