Companies that still use the old contract terms that were used decades ago are not taking advantage of Incoterms and the opportunity they provide to improve your supply chain performance. Incoterms help avoid confusion that’s created by varied and sometimes wrongful interpretations of shipping rules in different countries. By having an understanding of Incoterms, you can minimize confusion and misunderstandings and can alleviate trade disputes and litigation in international shipping. Continue reading…
“I took the Canal Zone and let Congress debate; and while the debate goes on, the canal does also.” – Theodore Roosevelt The Panama Canal is one of the busiest waterways in the world. It sees significant daily shipping traffic; moving 6% of the global commerce, the Panama Canal will continue to expand to allow growth.
The 5.4 billion dollar expansion of the Panama Canal was completed June 26, 2016, and is expected to largely decrease the instances of bottlenecks, lower than average transit times by raising capacity and allow for the transit of Post-Panamax vessels. The expansion is one of the most important infrastructure projects for logistics in over a century.
When it comes to outsourcing operations, nearshoring is becoming a better and better option for many companies. With rising labor costs in China and the problem with maintaining quality standards, as well as the desire to reduce transportation. Costs companies have started to reassess their manufacturing and offshoring strategies.
If you are unsure of what the differences are, we can explain. Offshoring involves shifting work to a foreign or distant country and/or company to production costs. Nearshoring, on the other hand, means sourcing manufacturing closer to The United States; to countries like Canada and Mexico. Many other nations in Central and South America like Argentina, Brazil, or El Salvador; and in the Caribbean like the Dominican Republic and the U.S. Virgin Islands are also used.
With offshoring, not offering the same cost benefits it once did, companies are moving production closer to home. According to an article published by Manufacturing Today, “companies like Apple, General Motors, General Electric, Microsoft, Caterpillar, and Ford have recognized that overseas offshoring is no longer the good deal it was, nor does it comport with today’s supply chain demands.”
A new era of logistics is coming. With more advanced technology and additional tech companies breaking into the shipping and logistics sector, we wanted to get a view of what these companies think about the future. From driverless trucks to your personal delivery bot, here are some world-changing innovations on the horizon.
INDIANAPOLIS–Langham Logistics, an Indianapolis leader in freight transportation management, announced a new addition to their sales team, Joshua Smarrella. Josh will be taking on the role as an Account Executive to grow and support new and existing customer accounts. Continue reading…
As a retail company, distribution of goods, and keeping up with orders, especially on holidays like Black Friday and Cyber Monday, should be your only goal. On the heaviest shipping days of the year, your logistic partners must help you establish and maintain a competitive edge. Delivering not only the goods, and products, but delivering profits for your company.
On Friday, September 2, 2016, South Korea’s Hanjin Shipping Co., filed for bankruptcy protection in the U.S. just days after filing for receivership in South Korea. Hanjin Shipping’s creditors withdrew support after deeming a funding plan drafted by the parent company, Hanjin Group, was inadequate. Continue reading…
Over the last decade, E-commerce has gone through an explosion in popularity thanks to the internet’s vast potential to connect people, places, and things. It’s being seen as a pillar of our economy that is growing faster than anybody expected. Sales for E-commerce are projected to reach $550 billion by the end of this year, an 80% increase from 2010.
What does this mean for logistics companies and retailers alike?
As this market continues to grow with no signs of slowing down, the effects will be felt across the board. Retailers will need to expand their distribution networks, relying on their use of 3PL partners. These new agreements will reach beyond just leveraging logistics companies more, but will also drive the need for fulfillment centers closer to the products ultimate destination.
As the Zika virus spreads, how will it affect the future of logistics?
Zika has recently emerged as a significant challenge, not only for the general population of the United States but also for logistics. China has placed the United States on a list of countries with restrictions requiring companies to take extra precautions to ensure that shipments are mosquito-free. This is in hopes of preventing the spread of the Zika virus. China previously instituted these import rules in March and had just added the United States. The move is expected to delay exports as companies figure out how to comply with the new regulations.
The Chinese government stated that shipments arriving from affected countries would be rejected if all anti-mosquito treatment protocols and proper certifications were not provided. If rejected, Chinese port authorities could require containers to submit to quarantine and undergo anti-mosquito treatments, resulting in additional costs and delays.