by A1 WorldWide Logistics | Aug 3, 2022 | Supply Chain, Warehousing
One of the main components of a shipper’s supply chain is warehousing. When goods have to be imported or exported, warehousing is the step that usually comes before or after. The importance is traced back from the 17th-century trade routes of European settlers to the ancient Roman Empire. Fast forward to today, and countless people still use warehousing due to its benefits. Businesses from a wide range of industries, as well as individual shippers, use warehouses to store their goods. The reason is that it adds value to their supply chain.
The primary usage of a warehouse is for the storage and distribution of goods. Without warehousing, shippers may not have the space to store cargo for an extended period and deliver it to customers. Likewise, warehousing is ideal for storing goods for later use or until demand for that product is high. Using a warehousing facility may also cut transportation and supply chain costs. A1 Worldwide Logistics offers a range of cost-effective warehousing services to streamline your supply chain.
A few examples of the solutions that we offer include:
- Public warehousing services cater to your specific cargo needs.
- Storage of merchandise, including industrial products, dry goods, oversized cargo, and more.
- Loading and unloading containers for storage.
- Distributing the freight to its final destination.
- Sorting and segregating items in pallets by color, flavor, size, and other traits.
- Cross-docking and trans-loading shipments from one location to another using various modes of transportation.
- Picking, packing, and crating cargo.
- Cargo manipulation.
The process begins by calling A1 Worldwide Logistics at 305-821-8995. We will give you a quote for warehouse storage. Next, we will coordinate the pick-up and transportation of your goods to our warehouse facility. Once the goods arrive, they will be unloaded and stored securely for the allocated period. While being held, the cargo may undergo any of the above services at your request. Once you are ready, we will also arrange the movement of your goods to the next or final destination.
WE CAN ASSIST YOU ALSO IN SPANISH: 305-821-8995
by A1 WorldWide Logistics | Jul 29, 2022 | Freight Forwarding, Shipping Logistics, Supply Chain, Transportation
The Port of Oakland was shut down last week due to trucker protests on work law AB5. Hundreds of independent contract truck drivers blocked traffic in three main port terminals. The largest terminal, Oakland International Container Terminal, closed operations due to the protesters’ boycott and containers soon began piling up. After several days of operations’ disruption, authorities relocated protesters to “free speech zones” and now the Port is working with normality.
Why Were the Protests Occurring?
The demonstrations were due to the signing of Assembly Bill 5 (AB5). Under AB5, independent contractors are required to classify themselves as employees, meaning that their amount of flexibility will be restricted. If owner-operators become employees, they must acquire licenses, pay for insurance, and pay required company fees. Owner-operators would also not be allowed to enter lease agreements with carriers for the rights of their service usage. They see AB5 as a dream killer for truckers that come to America in hopes of owning their own business.
In late June, the Supreme Court rejected the California Trucking Association’s request for a hearing regaining AB5. This cleared the law to go forward and angered the truckers to the point of protests. On Thursday evening, police and port executives announced that they were creating designated zones for the protesters and assigning citations. The citations were penalties for anyone blocking the port’s terminals and not complying with the “free speech zones.” Most protestors decided to stop demonstrating and return to work; however, some continued without disrupting operations. Many truckers agreed to look for other solutions instead of protesting.
What Could the Protests have Meant to Shippers?
Yearly, 2.5 million container TEUs pass through the Port of Oakland, making it one of the largest west coast ports. Due to the number of shippers that rely on the port to move their goods, countless supply chains could be affected. Congestion in the Port of Oakland usually results in shippers moving their freight through other ports in California. Since Long Beach and Los Angeles ports are already facing congestion, the bottleneck could increase further. Congestion may create a bottleneck effect not only in California ports but in ports across the U.S.
Dozens of domestic ports are facing congestion, which would exacerbate if shippers decide to use them as alternatives. Shippers may further be affected since trucking is one of the main components of the supply chain. If a substantial number of truckers decide not to do business, the capacity to move containers would be severely limited. Scarce capacity can hike up prices, worsening further the current inflation. Deliveries to shippers or customers of shippers may also delay if no trucks are available and ports are congested.
When adverse circumstances happen in the shipping world, shippers should not deter themselves from moving their goods. However, you must know to take the necessary precautions for whatever may arise. If you are moving freight anywhere domestically or internationally, contact A1 Worldwide Logistics at 305-821-8995 to get started. We will help you through the complex world of shipping and find the best solutions for your transportation needs.
by A1 WorldWide Logistics | Jul 8, 2022 | COVID-19, Freight Forwarding, Shipping Logistics, Supply Chain
Ports across the United States have recently seen a decrease in container import demands. This surprises many with the high volumes of imports into the U.S. in early 2022. The number of vessels waiting outside Los Angeles/Long Beach ports decreased from over 100 in January to under 30. From May 24 to June 7, container imports dropped an estimated 36%. While some believe this is the calm before the post-Shanghai lockdown storm, others see it as something more positive. Over the past year and a half, COVID has led to massive port congestion and backlogged supply chains. This decline in container ships could be a potential sign of relief.
One of the reasons for the reduction in West Coast ports is carriers moving freight to East Coast ports. The East Coast ports became more attractive after the congestion months ago created a logjam in West Coast ports. What is interesting is that East Coast ports are also facing a reduction in container imports. The drop is leading many to speculate that imports will reach pre-pandemic levels. However, it may be too soon to predict how inflation will impact the international shipping industry in the coming weeks. The vessels that left ports overseas on the trans-Pacific are expected to reach the U.S. by June.
The Impact of Inflation
Inflation has spread worldwide and affected industries such as oil and food. Compared with March last year, inflation has risen an estimated 8.5%, according to the Bureau of Labor Statistics. This is a 40-year high, with the previous high at 7.9% in December 1981. The price increases are due to multiple factors, such as the war in Ukraine and post-COVID demand. The geopolitical risks of the Ukraine war have also led companies to keep their goods in inventory in the U.S. As inventory builds up in the U.S., new orders from overseas slow, decreasing imports.
The price increase may have directly contributed to the decrease in demand. Now that inflation has risen to substantial levels, customers may be spending less on goods than before. With fewer goods purchased, fewer container vessels are being brought into U.S. ports internationally. It may be too early to tell if inflation significantly affected the decrease in U.S. port imports.
Can this Be a Good Thing?
The return of imports to pre-pandemic levels may signal a return to normalcy in the shipping world. Alongside the U.S. port import volumes, container spot rates from China to west coast ports are also declining. On a month-to-month basis, the spot rate has gone down over 30% since March 28, 2022. With container shipping rates lowering, this can tremendously benefit shippers transporting goods internationally. It may cost less to ship freight compared to a year ago. The container capacity to move freight has risen compared to last year, which shippers can take advantage of.
If you need a freight forwarder to move your cargo, contact A1 Worldwide Logistics at 305-821-8995 for assistance. We have a team of experts ready to handle your shipment and provide you with the best quote.
by A1 WorldWide Logistics | May 31, 2022 | Customs Broker Miami, Customs Clearance, Freight Forwarding, Supply Chain, Transportation
The war in Ukraine has influenced different shipping markets globally, including the LNG export industry. LNG is a natural gas comprised entirely of methane and has a variety of uses. The everyday purposes are for generating heat, electricity, power, and transportation fuel. Due to the current conflict in Ukraine, there has been a recent global shift in the LNG exported from Russia, which is one of the largest natural gas producers and LGN shippers globally. On the other side, Europe receives 45% of its LNG imports from Russia.
How is the Ukraine Crisis Affecting LNG Shipping?
When Russia invaded Ukraine, the European Union condemned Russia’s actions and demanded that they withdraw, which Russia rejected. In response, the EU has been planning various sanctions on Russia, including banning the importation of gas and oil. Sanctions are penalties placed on a country for committing a crime or breaking the law. Since Europe is Russia’s biggest natural gas customer, the old continent is already starting to look elsewhere to import LNG.
U.S. Gas Exportation to Europe Rising
The European Commission recently announced plans to reduce its dependency on gas from Russia to two-thirds by 2027. The reduction will be made by raising its LNG imports by 4.8 billion cubic feet in 12 months. Europe has already started the project by getting more imports from the United States. In the past few months, Europe has received 70% of the U.S.’s LGN exports. This is more than twice the amount of LNG that the U.S. transports to Europe regularly. Compared to Australia and Qatar, which are also large LNG shipping countries, the U.S benefits from its location. The smaller sailing distance that the U.S. provides allows countries in Europe to save time and money.
A few weeks ago, the U.S. government promised to export 15 billion additional cubic meters of LNG to the EU. An issue may arise since the U.S is currently an immediate strategy for the short-term. The increase in the amount exported by the U.S is still not enough to cover the volume produced by Russian pipelines. However, the U.S. plans on developing several LNG facilities along the gulf coast in the next few years. Countries in Europe also have started construction on regasification facilities to convert LNG imports to natural gas.
The demand for LNG will persist as one of the biggest natural gas producers is blocked by sanctions globally. Whether you export LNG or any other commodity from US to Europe, at A1 Worldwide Logistics, we are ready to assist you. We also assist with importing cargo and warehousing. Contact us at 305-821-8995
by A1 WorldWide Logistics | May 19, 2022 | Freight Forwarding, Import and Export Experts, Shipping Logistics, Supply Chain, Transportation
In the past few weeks, the Port of Shanghai had been working at a limited capacity due to the coronavirus pandemic. Now, operations in the port have opened to close to normal levels. Shanghai, China, has been on lockdown because of the “zero COVID” policy and has started to reopen in stages. This opening began with industrial production and manufacturing industries and then went to commercial businesses like stores and pharmacies. Additionally, The Port of Shanghai has slowly opened import and export operations. City authorities have noted that “normal life” will return to Shanghai on June 1, 2022.
This reopening of the city and port is significant for the world of international shipping. When Shanghai and its port shut down, the shipping industry instantly felt the blow. Overseeing an estimated 744 million tons of cargo yearly, the Port of Shanghai is the largest and busiest seaport globally. The lockdown immediately increased the number of container ships outside the port by 195% and affected global supply chains. To prevent a backlog, 20,000 employees worked in the Shanghai port to keep it operating during the lockdown. The result was a throughput of 82% containers passing through the port in April compared to April of last year.
What May Happen in the Upcoming Months
As Shanghai returns to everyday life, the supply chains for various companies may resume pre-lockdown levels of normality. With increasing orders being placed from reopened manufacturing factories, the Port of Shanghai will feel increasing pressure. Not only is freight being exported out of the port but into the port as well. The need for trucks to move freight from and to the port will also rise. Because the Port of Shanghai is so extensive, the opening is highly positive for Shanghai and the world’s economy.
Once the lockdown ends, different ports worldwide may experience a higher volume of containers than usual. This is due to the containers pent up in the Port of Shanghai. Ports like the Port of Rotterdam, which has dealt with congestion in the past, may feel the load. The Port of Los Angeles has been stable during the lockdown due to assistance from the port of Ningbo. When the Port of Shanghai went on lockdown, the Ningbo port took its freight and moved it to the Port of Los Angeles. This movement was done with a priority and helped alleviate pressure for both ports. With the holiday season approaching in a few months, ports and shippers may have to prepare early for any circumstance.
Shipping World Continues to Move
During the last few years, the pandemic and the lockdowns have made their presence known in the world of international shipping. On the one hand, the urgency to have freight shipped has increased due to a spike on ecommerce and, on the other, staff dealing with shippings at the ports and through all the supply chain has been limited (public health restrictions).
Shippers may need more than ever to move their goods and we’re here to help. If you plan on importing/exporting freight from anywhere internationally, contact A1 Worldwide Logistics at 305-821-8995 to get started. With the biggest port in the world fully operational, we want to make sure your cargo is transported with no problems. A1WWL has experience importing cargo from China such as vehicles, electronics, metal clothing, etc. We also have exported machinery, luxury items, furniture, and much more from the U.S. to China.
by A1 WorldWide Logistics | May 6, 2022 | Agricultural imports, Customs Broker, Customs Broker Miami, Customs Clearance, Import and Export Experts, Shipping Logistics, Supply Chain
On April 28, the Indonesian government began banning palm oil export. At first, the export ban included only bleached, refined, and deodorized palm oils. However, very soon the ban got to include all types of palm oils. Palm oil is an edible oil used in many food products, detergents, cosmetics, and other products. 60% of the world’s palm oil is estimated to be produced and exported from Indonesia.
Why Is the Ban Happening
One of the main reasons Indonesia is banning palm oil exports is to boost domestic availability. The amount of palm oil available for use in Indonesia has decreased significantly due to rapidly rising prices. In a few months, the price of palm oil has increased by over 40%. Situations such as the COVID-19 pandemic and the war in Ukraine have increased demand for palm oil, as it is a substitute for sunflower oil, which Russia and Ukraine traditionally produce and are now scarce due to the war and economic restrictions. Producers in Indonesia have raised the price to a point where locals can no longer afford to buy the product. There have been protests on the streets of Indonesia due to the shortage.
Authorities in Indonesia have stated that the ban will remain in place until affordability and availability improve in the country. However, analysts predict that Indonesia could shorten the span to a few weeks. This is because palm oil is an ingredient in many food products globally (such as chips, Oreos, candy, and cereal). A short export pause can hurt Indonesia’s economy and the global food economy.
With Indonesia consuming around 33% of its palm oil production, the ban will quickly raise the availability in the country. The ban may create opportunities for countries like Colombia, Malaysia, and Thailand to export palm oil.
The Effects of Banning Palm Oil
Banning palm oil may have different effects on both local and worldwide buyers. The first of them is, obviously, a generalized edible oil inflation. The export ban will be beneficial for Indonesian citizens because it could lower the price of palm oil, but since the ban is for exporting the goods, it may negatively affect importers outside of Indonesia. As previously mentioned, countless food manufacturers use palm oil as an ingredient. The cost of palm oil is relatively cheap, making the finished product affordable for the customers. Without access, manufacturers may have to purchase more expensive oil options, increasing the price of the finished good.
Many importers have already decided to look at different countries like Malaysia to purchase palm oil. Responsible for producing 25% of the world’s palm oil, Malaysia is the second-biggest producer after Indonesia. The global demand has also moved to alternatives like soybean oil. The problem is that Argentina, the biggest producer of soybeans, is currently in a drought. Export taxes for soybean oil have also risen as a direct response to the war in Ukraine. Despite the issues presently being faced, the futures prices for soybean and palm oils have risen to record heights.
When the Indonesian government lifts the ban, the demand to export palm oil and other goods will still be existent. If you are a producer of palm oil or need to import palm oil into the U.S., Contact A1 Worldwide Logistics at 305-821-8995. Our skilled importers will guide you through the shipping process. We also offer customs brokerage services for goods coming into the U.S.
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