What has changed since the Panama Canal Expansion?

by Rob Simmons | Jan 17, 2020 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Shipping Logistics

Why expand the Panama Canal?

The Panama Canal has been vital for international trade since it’s creation in the early 1900’s. While it has been incredibly useful, it has since needed an upgrade. Between the increase in international trade and the development of larger ships, the Panama canal needs to keep up. This is why the Panama Canal expansion project began.

What changed during the Panama Canal Expansion?

Dredging helps deepen the canal, allowing larger ships to pass through easily.

The Third Lane – Perhaps the biggest change in the Panama Canal has been the addition of a third lane. This lets more ships pass through the canal at any given time, drastically increasing traffic through the port.

The Third Set of Locks – The third lane means a third set of locks to balance the flow of water and prevent flooding or bottom scraping. This had to be completed after the third lane had been cleared and formed.

The Deepening – For the other lanes, dredging was done to make larger ships such as Neopanamax vessels clear through easier and with no risk of taking damage from the low levels.

One year Later, what has changed?

So far, the Panama Canal has had their third set of locks open now since June of last year, and so far 13,000 ships have passed through the third lane, including the largest cargo ship in the world. While this has increased overall traffic so far, can it be heralded as a success?

Time points to yes, but if you want to show what a true achievement this is you need to look at the competitors of the Panama Canal during the construction.

The Nicaraguan Canal – The Nicaraguan Canal was the first big opponent to the Nicaraguan Canal and was supposed to open up trade through the earthquake-prone country. But as investors fell through, so did the prospect of a South American competitor.

The Suez Canal – The Suez Canal was the other major canal that was also undergoing radical changes. While it was completed sooner, it also cost 3 billion more than the Panama Canal. These are both great advances for international trade.

A1WWL

A1WWL has been in the business of freight forwarding for many years, and when we read about how the Panama canal has grown, we get excited for the future of our profession. If you would like to learn more about the canal or freight forwarding, please give us a call today!

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What is the FSMA?

by Rob Simmons | Jan 15, 2020 | Customs Broker, Customs Broker Miami, Freight Forwarding, Shipping Logistics

What is the FSMA?

“The FDA Food Safety Modernization Act (FSMA), the most sweeping reform of our food safety laws in more than 70 years, was signed into law by President Obama on January 4, 2011. It aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to preventing it.” – FDA.Gov

How will the FSMA reform Food Safety?

To take a more proactive stance against food safety risks, several programs are broken up into “rules.” These rules are taken as in rules of law.

Final Rule for Foreign Supplier Verification Programs (FSVP) – FSVP is the most important rule for importers out of all the ones on this list. This mandates that Importers be food safety certified and can vouch for the quality of the food arriving per their trade route.

Final Rule for Preventative Controls for Human Food – This ruling is declared for food processing farms and plants across America to ensure there are proper preventative measures in places such as Hazard analysis and oversight management/prevention.

Final Rule for Produce Safety – The ruling that standardizes proper produce procurement and management. This is in place to ensure that all domestic vegetables are safely grown, harvested, packed, and safe for human consumption.

Final Rule on Accredited Third-Party Certification – This ruling is created for those who wish to pursue careers and employment opportunities in enforcing and auditing these standards.

How do these Affect me?

As importers and customs brokers, it is necessary to know everything you can about FSVP. This is a large reform meant to make food consumption healthier for Americans. This means widespread reform for the industry and world trade in general.

If you are a producer of American food, then odds are you’ve already adhered to the ruling because the only ruling here that is not yet fully implemented is FSVP.

A1WWL

If you are finding it difficult trying to determine if you need to be FSVP compliant or if you are having trouble becoming FSVP compliant, give us a call. We are working closely with the government to ensure that your imports are affected as little as possible, and we can help you out! Call us today!