by A1 WorldWide Logistics | Oct 5, 2023 | Freight Forwarding, Shipping Logistics, Supply Chain
A persistent drought is leading to the Panama Canal transits lowering even further. In June of this year, the Panama Canal Authority (ACP) set various restrictions on carriers passing through the canal. The limitations are due to a drought that the waterway is currently facing. The Panama Canal relies on rainwater to move vessels across; however, the region has been experiencing a lack of rainfall. An ocean warming event known as El Nino further causes water scarcity, leading to an emergency. With the Panama Canal being one of the most important trade routes in international shipping, limitations have a considerable impact.
A few months ago, the ACP put limits on the drafts and the daily transits of vessels passing through. A draft limit is the distance from the lowest point of the boat and the waterline. On June 5th, the ACP cut the limit to 44.5ft (13.65m) from 50ft (15.24). It then went down to 43.5ft (13.26) on June 25th. The ACP also reduced the daily transits or the number of boats that pass through the canal. Usually, that number averages from 36 to 38, but it went to 31 from 32 in August. The newer Neopanamax locks will handle nine ships daily, while the older locks will have 22 pass through.
What Can This Mean For Shipping?
The decrease in the daily transits and the other limitations can negatively impact international shipping. With the Panama Canal being able to cut trade routes by miles, the most significant shippers rely on it. Around 13,000 to 15,000 vessels pass through the passageway yearly, meaning restrictions affect many supply chains. For example, loaders will put fewer containers on a ship to drop the weight when a draft limit lowers. An effect is that a shipper may move fewer containers internationally, which is unfavorable for business shipping to customers. Reducing the number of ships allowed to pass through daily can result in delays.
Will The Panama Canal Transits Lowering Delay My Shipment?
As previously mentioned, the number of vessels passing through the Panama Canal a day is 31. A decrease in daily transits causes a bottleneck where ships must wait outside longer than usual before entering. In August, the backlog peaked at over 160 boats waiting for entry. While that number is lower, it is still over 100 and may rise in the coming months. The main concern for many shippers is that their shipments will experience delays. The ACP notes that wait times for southbound transit rose from 5.56 to 8.85 days in August. Northbound transits went from 6.55 to 9.44 days.
While the restrictions may lead to delays in shipping, this should not stop you from exporting internationally. However, shippers must take steps beforehand to protect their supply chains. An example can be finding alternative routes to transport your cargo. The best way to prevent delays is to talk to a freight forwarder regarding your shipment. A freight forwarder is in charge of arranging the transportation of goods on behalf of the importer and exporter. Contact A1 Worldwide Logistics at 305-821-8995 to speak to our forwarder and ensure the safe movement of your cargo.
by A1 WorldWide Logistics | Sep 21, 2023 | Freight Forwarding, Shipping Logistics, Supply Chain
A question that shippers ask themselves when moving goods internationally is whether they should start shipping by air or ocean. Beginning shippers with limited experience tend to be unfamiliar with the two methods of transport. It is essential that importers and exporters fully understand these methods of conveyance and know how they compare and contrast. Failure to understand their differences can result in monetary loss and supply chain disruptions. There are many factors like contents, weight, size, content, and supply chain goals to consider when choosing. This article will introduce shipping freight by air and ocean and explain the differences when choosing between the two.
Moving Cargo By Air
Air shipping is when an air carrier transports freight internationally. The aircraft may be commercial or chartered, with the sole purpose of shipping. This method of conveyance was the last to grow compared to sea shipping but is equally essential for shippers. The most significant benefit is the fast transit times, ideal for time-sensitive cargo. Examples of goods that tend to move by are perishables, high-value commodities, and pharmaceuticals that carriers must deliver quickly. Retail companies with global customers also benefit from air shipping due to the demand for speed. Another benefit is the high level of reliability that air freight offers.
A significant number of supply chain disruptions are due to congestion and traffic. Since freight volumes tend to be smaller at airports, congestion is less common. There also tend to be multiple flights to a city daily, meaning A shipment can be moved to another plane when an issue arises. Airports also tend to have strict regulations for cargo, leading to higher security than other transportation methods. An effect of the benefits is that shipping costs for air transport are usually more expensive than other conveyances.
Moving Cargo by Ocean
Ocean or maritime shipping is the process of moving cargo internationally by sea. A vessel like a containership transports the freight to a seaport. One of the greatest advantages is the significant amount of cargo that carriers can move by ocean. With nearly 80% of the world’s shipments transported by sea, it is an integral part of international trade. Individuals and companies transporting large amounts of goods benefit from this conveyance method. Ships also allow the movement of many types of cargo since a container can fit many items. A shipment larger than containers, like construction equipment, can still go on a vessel.
Compared to other transportation methods, containerships also allow for transporting heavier goods. For example, ships can offer roll-on/roll-off services to bring cars onboard. Another advantage of sea shipping is that it is usually more cost-effective than other conveyances. The freight that benefits the most are bulk goods like raw materials and non-perishable products. Businesses that ship large volumes of cargo also benefit. Since the load is moving by ocean, the transit times may be longer than other ways of transport.
Should I Begin Shipping by Air or Ocean?
While both methods can be equally valuable to a supply chain, specific shipments benefit from one. When choosing to ship by air or ocean, you should have the end goal in mind. For example, ocean shipping is ideal if you plan on moving large amounts of cargo. If your goal is to move goods quickly, shipping by air can be the best solution. To begin your international shipping journey, contact A1 Worldwide Logistics at 305-821-8995. We have freight forwarders to help you find the ideal transport method for your shipment.
by A1 WorldWide Logistics | Sep 14, 2023 | Customs Broker, Customs Clearance, Shipping Logistics
A message that your shipment is stuck at customs is the last response that a shipper wants to receive. This is especially true for cargo that is time-sensitive freight, like perishable or products for selling. The U.S. Customs and Border Protection (CBP) is responsible for safeguarding the country against importing dangerous goods. Its primary purpose is to facilitate lawful international trade and prevent terrorists and their weapons from entering the U.S. CBP has to carefully check cargo when entering the country and may sometimes put the shipment on hold. While there are many reasons why customs detains your goods, there are ways to prevent this from happening.
Reasons Your Shipment Is Stuck At Customs
As previously mentioned, CHB has to prevent the importation of goods that the U.S. prohibits from entry. Because of this, a common reason why goods may be stuck at customs is because they are illegal. Examples include absinthe (Alcohol), bush meat, dangerous toys, dog/cat fur, etc. Customs can hold other items like firearms due to restrictions the U.S. places on them. Importers of guns and ammunition require a Federal firearm license (FFL) before shipping into the U.S. Another reason customs may hold your freight is incorrect valuation. The customs value is the total monetary amount of the shipment brought to a country.
Customs is in charge of valuing the goods the importer brings to the U.S. from other countries. If the cargo the shipper imports does not have the correct value, customs will hold it for clarification. This can include revaluing of the taxes based on their pricing. Another common cause of customs holding your freight is an incorrect HTS Code. The Harmonized Tariff Schedule (HTS) is a system used to determine the duty rates for U.S. imports. Every item has a specific code to classify it, and an incorrect number can mess up the paperwork.
What Are Examples of Commercial Documents
Another reason customs might hold up your goods is missing or incorrect paperwork. Some of the documents a shipper requires when importing to the U.S. include:
- Bill of Lading
- Arrival Notice
- Commercial Invoice
- Certificate of Origin
- Packing List
The documents listed are some of the few a shipper requires for importation; however, the cargo determines the additional forms. For example, a vehicle may have different documentation than construction materials. It is essential that there are no errors in the paperwork, and the shipper fills everything out correctly.
Speak To a Customs Broker
While this article explains why customs may hold your cargo, other reasons exist. The amount of regulations for entry can confuse beginners and even regular shippers. The best way to prevent your goods from getting stuck at customs is by having a customs broker handle the clearance process. Customs brokers guide shippers through the importation process and ensure that the importer meets all requirements. They also submit all of the paperwork on behalf of the shipper. Contact A1 Worldwide Logistics at 305-821-8995 to speak to our experienced broker. We also provide other logistics solutions, like drayage services, to move your goods to the final destination when they arrive.
by A1 WorldWide Logistics | Sep 7, 2023 | Customs Clearance, Importing, Shipping Logistics
Compared to bringing material goods, importing pets into the U.S. has its characteristics and challenges. While getting pets into the U.S. may be easier than other countries, there are essential regulations shippers should follow. Failure to comply and prepare correctly can lead to customs holding your pets and monetary loss. Customs may even send your pet back to the country of exportation. The reason that the importation of animals is stringent is to protect both the pets and people. For example, a dog with rabies can be potentially fatal to humans. This article will briefly introduce the requirements for importing pets into the U.S. and what to expect.
What is Required Before Importing Pets Into The U.S.
When deciding to import pets into the U.S., the first step is to research the exporting country’s requirements. For example, countries like Vietnam, Brazil, and Nigeria require screwworm inspection before importing dogs. Agencies like the CDC, USDA, and APHIS are in charge of setting the policies for pet importation. It is also essential to understand the specific pet has prerequisites, which can vary based on the animal. For example, birds weighing over 100 grams must have a microchip, leg band, or tattoo to qualify for home quarantine. Specific birds like chickens and ducks also are not considered pets and are poultry, meaning they must meet different requirements.
Types of Documentation Required
Although the paperwork for a pet import depends on the animal, there are common documents that a shipper may require. Examples of some of the paperwork include:
- Rabies Vaccination – When bringing a dog into the U.S., high-risk countries like Brazil, Thailand, and Russia require certificate proof of rabies vaccination. Countries not high risk do not need vaccine proof, but the pet should be healthy and disease-free. Cats do not require rabies vaccine proof for import; however, certain U.S. states require it before entry.
- Import Permit – Certain states require an import permit for nonnative, non-domestic, or endangered wildlife species entering the U.S. Dogs from high-risk countries must also have import permits.
- Health Certificate – A Health Certificate is a document that certifies that your pet is healthy and disease-free. Airlines require a health certificate around 7 to 10 days before travel. Most airlines deny entry into the U.S. if the pet does not have one.
Contact a customs broker for a detailed explanation of the importation documents. After the shipper obtains and completes the necessary paperwork, they may contact a carrier to begin importing. While an importer can use many airlines for bringing pets into the U.S., they must be aware of container requirements.
How to Begin
While researching the requirements should be done before importing a pet, it may not guarantee a successful importation. Situations like incorrect paperwork disrupting the shipping process can still occur. This can be especially true when importing less common pets like reptiles and amphibians. The best way to prepare is by contacting a customs broker to handle the process. A broker ensures that all the documentation is correct, and that the shipper follows regulations. Contact A1 Worldwide Logistics at 305-821-8995 to speak to a customs broker about starting your importation journey. We also provide domestic transport to move your pets to the final destination once they arrive in the U.S.
by A1 WorldWide Logistics | Aug 31, 2023 | Freight Forwarding, Shipping Logistics, Supply Chain
Shippers should always take precautions when moving goods internationally, which can mainly be true when shipping during the Hurricane season. The Atlantic hurricane season is a time from June to November when more hurricanes appear in the Atlantic Ocean. This period coincides with the peak shipping season when exporters move the most cargo domestically and internationally. The need for supply chains to run smoothly increases with the amount of freight that is moving. The hurricane season may affect the supply chain process and disrupt freight movement. This article will explain what could happen when shipping internationally during a hurricane and how a shipper can prepare.
What Can Happen When Shipping During The Hurricane Season
The most significant impact a hurricane can have, directly and indirectly, is freight movement. For example, shipping by sea during a storm can result in the disappearance of cargo. In 2012, Hurricane Sandy reportedly caused a loss of over 15,000 containers at sea. While containers can withstand severe weather conditions, strong winds can still damage them. For a supply chain, this can mean significant monetary loss. Containership companies use a standard method to protect cargo by making ships heavier. Carriers do this by adding more containers to the vessel to protect against storm waves.
Indirectly, carriers reroute to prevent being in a storm’s path. Rerouting may cause delays in the shipping process, resulting in a loss of money from extra charges. An example is an increase in fuel costs. Along with loss and physical damage to cargo, power outages can also disrupt a supply chain during a hurricane. Power outages in ports may halt operations and slow down the shipping process. Specific ports may even close for a few days, impacting transportation routes globally. Another impact is that the demand for various items increases during hurricane season. The shipping of commodities like groceries and home repair items increased during this period.
How To Prepare
While uncontrollable situations can happen when shipping during the hurricane season, there are ways a shipper can prepare. One of the ways to protect yourself from freight loss is by getting cargo insurance. This insurance protects the value of a shipment stolen, damaged, or lost in transit. The shipper pays a small premium covering the amount specified in the carrier’s insurance policy. Another way to prepare is to plan ahead before moving goods internationally. An example is using the weather forecast to determine the transportation route to avoid weather disturbances. Planning also includes looking for alternative ports when a hurricane causes a port closure or delay.
While shipping during a time with many hurricanes may be daunting, It should not stop you from moving your freight. Companies still require the success of their supply chains when moving goods to their final destinations. However, a shipper must make all of the necessary preparations before starting. Another way to prepare is by finding a freight forwarder to coordinate the movement of your shipment for you. Forwarders ensure the delivery of your cargo while guiding you through the process. They also explain the best steps to take when shipping during events like a hurricane. To speak to a freight forwarder, contact A1 Worldwide Logistics at 305-821-8995.
by A1 WorldWide Logistics | Aug 23, 2023 | Freight Forwarding, Shipping Logistics, Supply Chain
Weeks of drought have resulted in congestion in the Panama Canal for carriers passing through. Many consider this backlog the “world’s worst traffic jam,” with over 125 ships currently waiting outside. The numbers reportedly reached a height of 200+ in the last few days. The Panama Canal is a significant shortcut in international trade for the Atlantic and Pacific oceans. Yearly, the Panama Canal generates nearly $2 billion in revenue and close to $800 million for Panama’s economy. Certain shippers save billions a year using the canal instead of taking a longer route. With the amount of importers and exporters that rely on the passageway, a drought significantly impacts cargo movement.
Canal Authority Responds to Drought by Placing Restrictions
Although different factors led to a traffic jam in the Panama Canal, the leading cause is a recent drought. The drought is due to a weather phenomenon called El Niño, which lower the rainfall for various locations. This year, in particular, Panama has seen a more substantial decrease in rain than usual. Along with El Niño, the rainy season in Panama has been less than average in the last few years. The issue is that the canal relies on rainwater to transport containerships between the two oceans. To combat the problem, canal authorities have recently placed restrictions on the number of ships that go through at a time.
Last week, the authorities lowered the range of daily containerships passing through to 32 from an average of 36 ships. Other restrictions include a reduction of the draft limit of the canal from 50ft to 44ft. The draft is the distance between a boat’s waterline and the deepest point of the ship. A vessel must reduce the number of containers on board to meet the limit. As a result, larger containerships and dry bulk carriers experience longer wait times. The factors mentioned combine to create a significant traffic jam in the canal. Along with affecting Panama’s economy, it substantially affects the global economy.
How Are Shippers Affected by the Congestion in the Panama Canal?
The importance of the Panama Canal is shown by the extensive number of supply chains that rely on it. With the number of ships stuck in the traffic jam, the main impact is shipping delays. This is especially true with the number of containerships still sailing to the canal. With the holiday season quickly approaching, this amount may soon grow. A consequence of the wait times is that the costs incurred are also rising for the shipper. Supply chain disruptions may reportedly increase prices for goods like imported groceries in the near future. Panama Canal authorities have already placed higher premiums for larger vessels that must pass through.
When disruptions like a canal backlog typically occur, shippers tend to look for alternative routes to move their cargo. This may lead to an increase in transport times and costs. Talking to a freight forwarder is an ideal way to protect your supply chain. They help by finding the best solutions for transporting your goods. Contact A1 Worldwide Logistics at 305-821-8995 to speak to a forwarder regarding the movement of your shipment internationally. Whether there is a backlog or other issues that may arise, we help you navigate the world of shipping.
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