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 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 | 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.
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