by A1 WorldWide Logistics | Nov 28, 2022 | Customs Broker, Freight Forwarding, Supply Chain, Warehousing
The holiday season may be a time for pressure on the logistics of large and small businesses. Constant news and reports of shipping delays have expedited this pressure globally. Smaller, more local companies are now carefully planning their logistics strategies to compete with larger companies. Although smaller businesses have a few logistics similarities to larger firms during the holiday season, many differences exist.
The Logistics of Larger Businesses During the Holiday Season
Large businesses tend to take a more tactical method when getting the goods to their customers. Since they have a broad reach, larger companies focus on getting their freight to their clients swiftly. Different approaches usually do this, and it’s possible due to the size of the companies. One-day and two-day shipping has raised customers’ confidence that they will receive their goods this holiday season.
Months before the holiday season began, certain companies started implementing a surcharge to combat the growing demand. As the number of shipments grew, the expenses to ship also rose. Since large companies are so widespread, they may be able to negotiate cooperation for the surcharge. Another logistics solution put into effect by bigger businesses was to increase capacity and inventory before the holiday season. An example is purchasing more freight aircraft to handle the load and adding more warehouse storage space.
How do Smaller Businesses Differ?
Many smaller businesses tend to have little capital to offer certain services compared to larger ones. Especially with the holiday season on the horizon, they have a different logistics approach. Supply chain issues, shipping costs, and delays can sometimes arise from the shipping logistics of larger businesses. Since smaller companies tend to be brick-and-mortar, their supply chains can be smaller and more streamlined.
Small-scale supply chains that smaller businesses have may make them more attractive to customers. The shipping delays that have been persistent over this year led shippers to switch to a local smaller business. Instead of dealing with possible delays from overseas shipments, a customer can drive somewhere close by for the same product. Larger companies have also noticed the benefits of brick-and-mortar stores and created more local stores. Instead of waiting for the goods to be delivered, customers can now drive to a local store to pick up the goods, just like brick-and-mortar stores.
A1 Worldwide Logistics
Regardless of your business size, there are different parts to shipping your goods to your customers. These crucial parts can affect the whole supply chain if one part goes wrong. This may be even more critical during this holiday season with increasing global demand to ship goods. The pressure to move freight has gone up over the last few years.
Contacting a logistics company can alleviate the pressure by handling the movement of your shipment for you. Give A1 Worldwide Logistics a call at 305-821-8995 to learn about the many logistics solutions we offer. From freight forwarding, customs clearance, warehousing, and more, we’re here to ensure the movement of your goods safely and promptly.
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 13, 2022 | Customs Broker, Customs Broker Miami, Customs Clearance, Freight Forwarding, Import and Export Experts, Shipping Logistics, Stories of Businesspeople
Meet Ali Musayev, an Azeri rug maker who sells carpets at a brick-and-mortar store in Baku, Azerbaijan. Ali was born in Baku and recently inherited the business from his dad, who inherited it from his dad. His grandad Osman originally started the company hoping to escape poverty and provide for his family. When it began, the business became one of Baku’s most significant family-owned rug shops. Shoppers from around Azerbaijan and nearby countries visited this small shop to purchase rugs. Ali’s granddad understood the centuries of importance rugs had in Azeri culture and tailored the carpets to history. Osman crafted every tile and textile with the highest quality material to represent the culture, and customers took note.
From Grandfather to Son
Osman gave all his knowledge in carpet crafting and the shop to his son Nasir before his passing. Nasir grew the company further and preserved Osman’s vision of keeping history and culture alive for decades. A dilemma soon arose that would alter the course of Nasir’s business. International shipping became so popular that Nasir’s customers began buying imported rugs from other stores. This lowered traffic and soon put Nasir’s family in the poverty that Osman had first faced. Nasir was also recently diagnosed with lung cancer. Doctors said that he had a few weeks to live. Nasir had no choice but to pass the company down to his son Ali.
Grandson in Charge
When Ali’s dad became terminally ill, one of his last wishes was for Ali to keep the store running. Burdened by the pressures of his family’s legacy and poverty, Ali has decided to do business in the United States. He understands that to keep the business alive, he has to keep up with international shipping trends. Ali also understands how the internet works and how to market a business virtually. Despite having limited money and resources, Ali decided to visit America in a desperate quest. This trip was to preserve his business, save his wife and children from poverty, and keep his family’s legacy alive.
When in the U.S., Ali not only looked for customers but for ways to export the carpets to them. Since this was Ali’s first time exporting globally, he was anxious and unsure what to expect. However, the pressure to succeed overrode the nervousness, and Ali researched dozens of transportation companies. After analyzing the benefits of each company, one stood out: A1 Worldwide Logistics. The first thing Ali noticed was our slogan, “Global Reach. Personal Touch.” Ali thought about the detail of the culture his dad and grandpa paid attention to when creating the carpets.
From Local to Global Reach
Each carpet was created with high-quality Azeri fabric and tailored to the customer’s needs. The personalized customer service that carried the business for decades could now be scaled globally. Still nervous, Ali decided to contact A1WWL to learn more about the shipping process. Words that Ali had never heard of, such as Customs Brokers, Logistics, and Freight Forwarders were explained to him with simplicity. Ali began to understand what set A1 apart from other companies.
He realized how much we were committed to helping him understand and navigate the complex world of shipping. Fast forward a few months, and his business now reaches several countries, including the U.S. Ali is no longer in debt, his tradition is alive and his family is out of poverty. Contact A1 Worldwide Logistics at 305-821-8995 if you are ready to begin your own shipping journey.
(This story is fictional, has commercial purposes, and is representative of A1WWL’s clients)
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 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.
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