by A1 WorldWide Logistics | Apr 21, 2022 | Freight Forwarding, Shipping Logistics, Supply Chain, Technology, Transportation
The transportation industry has seen massive growth and development in freight movement over the last few decades. A recent topic that has become popular in the Transportation and Logistics industries is the usage of 3D printing. Advances in technology lead some to believe that 3D printing may help the industries grow. Others predict that 3D printing can have an opposite effect and interrupt freight movement. This was recently discussed in a virtual session at The Economic Club of New York. One of the topics brought up was the effect that 3D printing may have in the future.
Pros and Cons of 3D Printing
3D printing is a manufacturing process that converts digital data into a three-dimensional image. One of the main benefits of 3D printing is that it will streamline the supply chains of transporting products. The traditional supply chain process involves obtaining, manufacturing, and transporting goods to customers. 3D printing may allow companies to create goods in their location instead of importing the products elsewhere. Manufacturing goods in one’s facility can save money, time, and resources. 3D printing also allows for versatile, complex design due to its method of digital creation.
One of the main disadvantages of 3D printing is the effect that it could have on the freight forwarding/transportation industries. A freight forwarder is an intermediary between shippers and transport companies who coordinate the movement of goods internationally. With companies creating products in their facilities through 3D printing, the need for a freight forwarder becomes lessened. The way that many companies create products today is by outsourcing materials from different countries. Freight forwarders may coordinate the importing of those materials internationally.
What Effect will 3D printing have on the Transportation Industry?
The current supply chain model for manufacturing and moving freight involves many steps. Companies source cheap labor overseas, and then pay to get the goods transported. With 3D printing, a portion of the supply chain could be gone, although any statement suggesting that goods will be made in anyone’s basement are truly exaggerated. Perhaps, in many (many!) years from now, the international movement of goods may be replaced with the international movement of designs and information to create the goods.
3D printing may impact globalization because it is based in the countries’ permanent exchange of goods. With companies creating goods domestically, supply chains could become less dependent on other countries to be effective. A nationwide lockdown or a conflict between two countries may become less of a disruption to a supply chain.
A1 Worldwide Logistics
While 3D printing may impact the future of transportation, it may be a while before 3D printing becomes standard practice. Freight still has to be moved internationally. When moving freight, it is essential to have a freight forwarder that understands the world of international shipping. A1 Worldwide Logistics has experience working with freight transport methods such as ocean, air, and land. Contact us at 305-821-8995 or info@a1wwl.com for a quote to get your goods moving today. We also have customs brokers to arrange the customs clearance process of your imports.
by A1 WorldWide Logistics | Apr 12, 2022 | Freight Forwarding, Shipping Logistics, Supply Chain
Several districts in China have been on lockdown for the past few weeks due to Covid, and the impact is now being felt on global supply chains. As outbreaks began to surge in Shanghai, the lockdown has lengthened until further notice. This was after an announcement of 16766 positive coronavirus cases on April 5. Even before the lockdowns returned to China in March, many supply chains worldwide struggled to keep up with the overwhelming demand. With some of the world’s biggest ports being shut down, global supply chains may feel more significant stress.
In the past few years, the demand for shipping internationally has risen significantly. After the coronavirus made its way worldwide, ordering goods online instead of driving to a store became more common. When goods are bought online, they tend to be transported from different countries like China. While the number of goods shipped rose, the coronavirus was still present. Limited workers, lockdowns, and other effects of the coronavirus started to show in the supply chains of different companies globally.
How does this impact supply chains
One of the leading exports out of ports like Yantian and Shanghai located in China are electronic products. Manufacturers that create electronic products for large companies like Apple, Tesla, Samsung, and others are being forced to suspend operations. Foxconn, an electronics supplier to Apple, has recently announced that it will pause operations in Shanghai. Since Foxconn is one of Apple’s biggest suppliers, this may lead to product shortages in the next few weeks. The supplier outages will affect the supply chains of Apple and dozens of other electronics companies as well.
Companies have decided to move their manufacturing facilities away from lockdown zones to keep supply chains going during the current lockdown. However, the goods still have to be transported to the ports by truck. Not only are several highways shut down in the lockdown zones, but truck drivers also have to test negative for Covid a certain period before bringing containers to the ports.
Not only will the lockdowns affect production, but the shipping of the products as well. Because many ports in China are shut down, shipping orders can become delayed. China has some of the most prominent ports in the shipping world and many orders may be backlogged. This could mean that ports in Europe and the United States will increase inbounding cargo in the near future, further growing congestion in those ports. The ports in the Los Angeles area saw their fair share of issues last year. From equipment shortage to the backlog of vessels stuck at the ports, the lockdowns in China may prolong the challenges.
A1 Worldwide Logistics
Although different supply chains may be strained at the moment, the world of shipping is continuing. Freight is still being moved internationally. However, much greater precautions than usual may have to be taken when transporting goods. You must be informed of what to expect. If you need assistance with any part of your supply chain, contact A1 Worldwide Logistics at 305-821-8995. Our services include international shipping, customs clearance, trucking, warehousing, etc.
by Rob Simmons | Oct 18, 2021 | Shipping Logistics, Supply Chain
Worldwide shipping costs continue to rise and companies are now looking at ways to optimize their supply chain logistics to protect against these costs.
Why are Shipping Costs Rising
Different reasons such as e-commerce demand, port congestion, and containers shortages are leading to a rise in freight costs. The coronavirus pandemic created a reliance on e-commerce which created a demand for freight to be shipped internationally. With an increase in global shipments, the capacity for different types of shipments became tight. Conveyances such as air shipping, ocean shipping, and even trucking experience an increase in volume. This led to carriers increasing their costs for space.
The shipping price for ocean containers rose drastically over this year. The global average to ship a 40ft container rose to over $8000 this year alone. This is more than 4 times the amount it was last year. There has also been a shortage in container production, adding to the increase in container costs. Companies and retailers that move goods globally are becoming more aware of the transportation costs and are adjusting the logistics of their supply chains to prepare. Here we will explain how companies are lowering their supply chain costs.
How are Companies Optimizing Their Supply Chains
Having Enough Inventory – With a large amount of congestion currently present in ports around the world, retailers are preparing their supply chains beforehand. The backlogs in seaports mean that freight ordered right now could take weeks longer to get to the customer compared to if the freight was ordered a few months ago. The inventory may have to be ordered in advance and be core products. These are products that are the most popular with the customers and tend to run out the inventory the quickest.
Bringing Fewer Products into the Market – Instead of introducing new products into the market, companies are having a greater focus on current core products. This can help increase revenue while lowering costs. The profit that may come from a new product may be less than the potential profit generated from an existing core popular product. Also, the supply chain expenses that go towards launching that product may be high.
Revising Contracts – Certain companies are negotiating with their shippers to change the terms of their contracts. This could mean changing the contract to ship only a certain volume of freight at a time to benefit the company. Negotiating contracts may be harder to do if the shipper is a larger company like FedEx.
Understanding your Various Costs – Since supply chains are usually different pieces working together there can be different costs involved. This can range from production costs to investment costs and even transportation costs. Companies are looking at their budgets and analyzing where their expenses are going in their supply chains. Unnecessary expenses can be cut and used for other means.
A1 Worldwide Logistics
Rising shipping costs may seem alarming to companies and individuals planning to move their freight globally. However, knowing what to expect is essential in protecting you or your companies supply chain when shipping. Hiring a good freight forwarder is a way to do so. A freight forwarder is an agent that coordinates the shipment of goods from point A to point Z. Forwarders help clients understand the shipping industry and moves the freight for them. If you are planning to move goods or need help with the logistics of any part of your company’s supply chain, contact us at a1wwl.com. Our trained forwarders are here to guide you through the entire shipping process until it reaches the final destination.
by Rob Simmons | Oct 14, 2021 | Freight Forwarding, Shipping Logistics
The current international freight shipping market is seeing a sizeable distribution of spot prices. When shipping containers, a spot price is a cost for moving freight shipments to a certain destination. Earlier this year there was a report that spot prices were high compared to last year, but they still are growing in the present moment. With spot rates growing for certain freight shippers, other shippers are finding a decrease in spot rates, and this can create an unbalanced spread.
The reason that the spread is so wide may be attributed to the current market. Situations such as port congestion and a scarcity of containers created a high demand in the market. The demand in trucking and warehousing has also risen compared to the capacity. Plus, with the holiday season quickly approaching, the demand may increase. This has led to a high push for shippers to get space on a freight vessel, rising the spot rates.
Why are Some of the larger Customers Getting the Leverage?
The trend in the spot rates may be more favorable for larger shippers than mom-and-pop shippers. The larger or more attractive shippers tend to pay fewer spot rates than smaller importers. This is because compared to a smaller shipper, larger freight shippers may offer more benefits for the carrier. Larger freight volumes from big shippers can be attractive to the carriers. Larger shippers may also provide the carrier with lengthy contracts and tend to have an already established relation to the carrier.
Xeneta, a shipping index and a benchmark for comparing ocean freight rates recently did an analysis of the market rates for the China-Los Angeles ports. They reported the short-term market rates had a high and low difference of around $1200 a few months ago. At the same time last year, the China-Los Angeles ports had a high and low difference of only $150. If this trend continues, there is a fear that smaller shippers may not be able to compete in the freight shipping market.
The Dependance on Location
One of the main contributors to the spot prices is where the freight leaves from and the final destination of the shipment. The trans-Pacific is the region in the Pacific Ocean where several countries cross over to do trade. Because of the vast number of countries doing trade in the trans-Pacific market, different countries may have their own market. This also can mean that they have their own spot prices.
For example, shipping from China may be cheaper than shipping from Japan. This is because China has some of the largest container ports in the world and may be able to move more freight in a certain time period. This high volume of freight that is able to be moved can lead to higher profits for carriers.
The destination of the freight being moved may also affect the spot price. The port of Los Angeles has experienced an immense amount of congestion in the past year. Even at the present moment, there are freight container vessels waiting to be unloaded. If a shopper plans on moving their freight through this port, short-term rates may be high due to waiting times. Now compare the situation to the Port of Hueneme a few miles away. With fewer congestion and traffic, the shipping rates per container may be less.
A1 Worldwide Logistics
Knowledge of the international freight shipping market is important when you plan on moving freight. Particularly in the current market, it is critical that you are getting a fair and understandable quote for your shipments. Contact us at 305-821-8995 or at info@a1wwl.com to get a quote on your shipment. Our freight forwarders look for the best quote prices for moving your shipments domestically and globally.
by Rob Simmons | Sep 8, 2021 | Customs Clearance, Freight Forwarding, Import and Export Experts, Shipping Logistics, Transportation
The current international freight shipping market is seeing a sizeable distribution of spot prices. When shipping containers, a spot price is a cost for moving freight shipments to a certain destination. Earlier this year there was a report that spot prices were high compared to last year, but they still are growing in the present moment. With spot rates growing for certain freight shippers, other shippers are finding a decrease in spot rates, and this can create an unbalanced spread.
The reason that the spread is so wide may be attributed to the current market. Situations such as port congestion and a scarcity of containers created a high demand in the market. The demand in trucking and warehousing has also risen compared to the capacity. Plus, with the holiday season quickly approaching, the demand may increase. This has led to a high push for shippers to get space on a freight vessel, rising the spot rates.
Why are Some of the larger Customers Getting the Leverage?
The trend in the spot rates may be more favorable for larger shippers than mom-and-pop shippers. The larger or more attractive shippers tend to pay fewer spot rates than smaller importers. This is because compared to a smaller shipper, larger freight shippers may offer more benefits for the carrier. Larger freight volumes from big shippers can be attractive to the carriers. Larger shippers may also provide the carrier with lengthy contracts and tend to have an already established relation to the carrier.
Xeneta, a shipping index and a benchmark for comparing ocean freight rates recently did an analysis of the market rates for the China-Los Angeles ports. They reported the short-term market rates had a high and low difference of around $1200 a few months ago. At the same time last year, the China-Los Angeles ports had a high and low difference of only $150. If this trend continues, there is a fear that smaller shippers may not be able to compete in the freight shipping market.
The Dependance on Location
One of the main contributors to the spot prices is where the freight leaves from and the final destination of the shipment. The trans-Pacific is the region in the Pacific Ocean where several countries cross over to do trade. Because of the vast number of countries doing trade in the trans-Pacific market, different countries may have their own market. This also can mean that they have their own spot prices.
For example, shipping from China may be cheaper than shipping from Japan. This is because China has some of the largest container ports in the world and may be able to move more freight in a certain time period. This high volume of freight that is able to be moved can lead to higher profits for carriers.
The destination of the freight being moved may also affect the spot price. The port of Los Angeles has experienced an immense amount of congestion in the past year. Even at the present moment, there are freight container vessels waiting to be unloaded. If a shopper plans on moving their freight through this port, short-term rates may be high due to waiting times. Now compare the situation to the Port of Hueneme a few miles away. With less congestion and traffic, the shipping rates per container may be less.
A1 Worldwide Logistics
Knowledge of the international freight shipping market is important when you plan on moving freight. Particularly in the current market, it is critical that you are getting a fair and understandable quote for your shipments. Contact us at 305-821-8995 or at info@a1wwl.com to get a quote on your shipment. Our freight forwarders look for the best quote prices for moving your shipments domestically and globally.
by Rob Simmons | Aug 30, 2021 | Freight Forwarding, Shipping Logistics, Transportation
Regular LTL (Less Than Load) and FTL (Full Truck Load) may come up in the conversation when transferring freight by truck but what tends to be discussed less is moving mid-sized freight. This can be thought of as the freight with the shipping size between common LTL and FTL. More than 5 pallets of freight or a linear size between 10-28 feet could be an example of this. The main type of mid-size freight shipments is PTL (partial truckload) and Volume LTL (volume-less than truckload).
Volume LTL’s can be described as a freight shipment that is six or more pallets that weigh over 5,000lbs and does not fill a full truck. Partial truckloads are similar in the aspect that they are not an FTL but there are some differences. Partial truckloads also do not need a freight class. A freight class is a systematized method to determine freight rates for LTL shipments. The delivery times also may be different. With partial truckload, the truck delivers the freight straight to the receiver. Volume LTL typically follows a network designated by a carrier so it may not be a straight delivery.
What Are Some Drawbacks?
When shipping mid-sized freight there may be some downsides for both volume LTL and PTLs that you should be aware of. Although partial truckloads may deliver straight to the receiver, they may also have to pass through consolidation facilities. This could mean that additional stops. These stops can create more time for delivery may not be ideal if you want your freight as soon as possible. The truck driver also may not begin the journey to deliver the freight until the trailer is fully packed.
Similar to PTLs, volume LTLs also may have slowed delivery times due to the multiple stops. Volume LTL stops at various terminals on their journey where they are unloaded and loaded with other shipments. Not only may this slow down speeds, but this amount of handling may also increase the chances of freight getting damaged. As previously mentioned, volume LTLs have a freight classification system to control pricing. Although this system was designed to clarify freight shipping rates, it may also complicate them as well. Without proper research, shippers may charge more than the correct amount for freight rates.
The method of the classification system is that you pick a number between 50-500 and that number will determine how you calculate freight rates. Incorrect calculations can occur and may not be favorable for the customer. Another drawback is that the liability if freight is damaged or lost is very limited. This is because volume LTL is only a dollar per pound. This means that if something expensive like jewelry gets damaged, the shipper may lose large amounts of capital.
Shared Truckloads
A method to move midsized freight without having to deal with some of the drawbacks can be by shipping STL (shared truckload). A shared truckload is when instead of only having one shipper’s freight on a truck, multiple shippers combine their shipments to one truckload. This can be beneficial to both the shipper and the carrier. For the shipper, STLs lower the chances of damage and speeds the delivery process. Similar to FTLs, STLs deliver directly to their appointed destination without having to go through terminals and hubs. This means that the delivery is streamlined, and freight may not be damaged by handling when going through hubs.
The benefit of not having to stop through hubs to unload and load is also beneficial for companies that want to quicken their supply chain. and Money can also be saved with STLs because shippers only pay for their occupied truck space. STL may also be beneficial to the environment. With freight being shared in a truckload, the number of trucks delivering freight decreases. With fewer trucks on the roads and highways, less gas is released into the atmosphere.
A1 Worldwide Logistics.
When freight is shipped globally, people may tend to focus on getting their freight to the ports and overlook the last mile. When the goods arrive at the ports it is important that the goods are brought to their final destination in perfect condition, and we can assist with that. Our forwarders will find the best, dependable carriers to move your freight. If you plan on moving freight and are looking for a quote, call us at 305-821-8995.
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