Langham Welcomes New International Team Member

INDIANAPOLIS – Langham Logistics continues to grow with the addition of a new International Business Relations Specialist, Danny Holmes. Holmes has been hired to help Langham grow and foster strong relationships with their customers by delivering first-rate customer service and exceeding their expectations.

“I am extremely excited about joining the Langham team. My ultimate goal is to not just move freight around the world for our clients, but to provide an exceptional customer service experience for them.” Holmes said.
Holmes has 13 years of experience in the logistics industry, working in different capacities within air and ocean imports, management, and sales. He is attending Indiana Wesleyan University for business with intent to graduate with an associate’s degree in the fall. His primary focus at Langham will be building relationships with clients to consistently deliver solutions tailored to their unique needs.
“We are excited to have Danny as part of the Langham family,” said Rick Riedinger, Director of Operations for Langham Logistics. “His passion for excellence and superior customer service is sure to compliment Langham’s current operations. We are already impressed with his immediate contributions.”

TSA Raises Tariffs

The Transpacific Stabilization Agreement – an agreement representing the 15 largest carriers in the U.S. import trade from Asia – announced plans Aug. 18 to increase rates $600 for all 40-foot containers beginning Sept. 1. This rate hike looks to account for heavy traffic on the East Coast, as bookings have exceeded vessel space during the ongoing contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union on the West Coast.

This rate increase has been put in place to assist in the rate restoration program outlined by the TSA in January, which aimed to raise rates $300 per Forty-Foot Equivalent Unit each year. Though rates from Shanghai are up an average of $297 per FEU (a 16.2 percent increase) since that time, the additional funds were not able to meet the needs of individual carriers.
Eight General Rates of Increase have been proposed over the course of 2014, each obtaining a realization rate of 50 percent or less. The Aug. 1 GRI was realized at 72 percent, but has lost an average of $89 per FEU since.
In contrast, TSA member Maersk Line reported a groundbreaking 42 percent increase in profits over the second quarter. Though it is difficult to attribute the soaring profits of the world’s largest container line to one route’s raised pricing, the conflicting evidence is compelling. Maersk officials account for the surplus differently.
“This came through the continuous focus on operational cost savings mainly from vessel network efficiencies and improved vessel utilization,” a Maersk Line representative told SeaTrade Global.
 
For your convenience, the 15 carriers that make up the TSA are listed below:

American President Lines, Ltd.
China Shipping Container Lines
CMA-CGM
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag-Lloyd AG
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd (K Line)
Maersk Line
Mediterranean Shipping Co.
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Inc.
Yang Ming Transport Corp.
Zim Integrated Shipping Services
Contact your Langham representative with any questions or concerns you may have about how this change may affect your supply chain so that we can continue to evaluate the best cost/service model for your container shipments

Why the West Coast is Staying Open

Mayor Garcetti of Los Angeles has reached tentative agreement with Teamster to avoid possible port disruption. PMA will send on-site staff to all Southern California terminals to watch and measure any abnormal events.

The ILWU master contract was officially extended until this Friday morning 8a.m. PST. Both parties have agreed to take a 72-hour break from negotiations on a new coast-wide contract while the ILWU attends to an unrelated negotiation in the Pacific Northwest.
In 2002, the International Longshore and Warehouse Union’s contracts were gapped for nearly a month, resulting in a 10-day shutdown of 29 ports along the West Coast. Ports only reopened after former President Bush invoked the Taft-Hartley Act to save the $1 billion in fees the U.S. citizens were paying for each day the ports were closed.
Why are the ports staying open in 2014? Why haven’t the ILWU and Pacific Maritime Association reached an agreement? Keep reading to learn more about the West Coast shutout.

Money Talks

Today, a strike would cost the U.S. more than $2 billion each day, over twice as much as in 2002. Uneducated citizens ogle over the protection and opportunities of a union job that pays $25 to $40 an hour. So, the heightened press that comes with a strike could undercut the ILWU’s bargaining position because of the high demand for those jobs.

Peer Pressure

Mexico, Canada and Gulf ports have expanded their staffing and hours to accommodate the congestion foreseen with the ILWU contract negotiations. This puts pressure on the West Coast ports to stay open because after changing routes, fewer retailers are likely to return their supply chains to an unreliable port.

Expanded Opportunities

The 29 ports in question are responsible for moving 12.5 percent of the U.S.’s gross domestic product each year, a 50 percent increase from 2002. They also handle over 70 percent of imports from Asia. A prolonged dispute between the ILWU and PMA could result in ripple effects in the U.S. economy that are too big to ignore.
To stay ahead of the game, the National Retail Federation still suggests keeping your contention plans at the ready in the case of a disruption. There is too much uncertainty surrounding the matter to feel at ease just yet, and a good contention plan should keep your supply chain moving smoothly.
Please let us know if we can help.  Contact our international team by email international@elangham.com or get help by calling 855-214-2844.

Langham Logistics Company Welcomes New Manager

INDIANAPOLIS- Langham Logistics welcomes Brian Wareham to the team as a Business Development Manager. Brian has a long history of providing logistics solutions for manufacturing and distribution businesses in Indiana. 

“I’m excited to, with the Langham team behind me, create success for our customers by instituting transportation and warehousing solutions that bring value to their brands,” Wareham said.
 
Wareham received his bachelor’s of science in business management from Bowling Green State University. He then went on to become the director of logistics for a national foodservice equipment distributor and now boasts 32 years of experience in supply chain and logistics.
“I hope to provide Langham Logistics with opportunities for growth and make  meaningful connections with more great people and companies in Indiana,” Wareham said.
 
Langham Logistics is a door-to-door transportation and warehouse service company based in Indianapolis and established in 1988. Their reputation of being calm, cool, and delivered echoes throughout all of Langham’s services, giving their clients the freedom to stay focused as they make sure the goods arrive on  time and in perfect condition.
 
“Brian’s experience and understated, professional demeanor are sure to be an asset both to our company and his customers,” said Cathy Langham, President of Langham Logistics. “We are very excited to have added him to our family.”
 
Contact 
Langham Logistics 
Holly Reynolds, Executive Assistant 

June 23, 2014 – Introducing the Swiss Consolidation Service

You Have Exports. We Have Experts .

It’s the most controlled, managed, cost-effective way to export to Switzerland. Ship your exports into Basel Switzerland and reach the rest of the country within 24 hours!

Introducing the Swiss Consol

Save money. Save time. And save yourself all the typical export hassle.

  • Weekly departures allow for consistent planning and quicker service to Switzerland.
  • Consolidation creates savings compared to leaving empty space on Full Container Loads or other Less Than Container Load alternatives.
  • Langham Logistics’ customer service tools give you confidence to manage your supply chain, anywhere in the world.
  • Simple, easy-to-manage schedule with Langham Logistics’ Monthly Planner.

 

Reach all of Switzerland within 24 hours of arrival! Simple. Secure. And insanely fast. For more information, contact our international team at 855-214-2844 or international@elangham.com


Don’t Strike Out on the West Coast

Don’t Strike Out on the West Coast!

The International Longshore Warehouse Union (ILWU) and Pacific Maritime Association began talks May 12 to negotiate the contract set to end June 30. Each side has large demands to be met before an agreement can be made. So the U.S. watches on, hoping not to see the 10-day strike that left dozens of ships idle in 2002.

Be sure to plan your emergency shipments in advance to avoid congestion on the West Coast. You have a few options to devise the contingency plan that best fits your needs should there be a strike:

Stick to the Plan

 You don’t necessarily need to reroute less urgent shipments, and this will be the least expensive option. Remember many carriers plan to institute surcharges if the strike occurs. Carriers will be hesitant to reroute shipments anyway unless a lengthy unrest is expected.

Early Bird Gets the Worm

 Whenever possible, you should schedule shipments to reach port before June 30. Concurrently, account for additional time as the last of June approaches because many others will be taking advantage of the same opportunity.

Change Modes of Transit

 Urgent shipments can be transitioned to air shipments with the help of airport logistics. You can also use a sea to air option for a smaller cost impact.

Reroute to Another Port

 USWC Vancouver or Prince Rupert. Prince Rupert is a possible Inland Port Intermodal gateway but is only serviced by the Canadian National Railway. Capacity may be tight and stack trains are limited. There is no transload facility, either. Vancouver is an option, but there is currently a backlog of 1 to 2 weeks.
 
Mexican gateway at Ensenada, Manzanillo, or Lazaro Cardenas. These are small ports without the ability to handle large-capacity operations. Only Lazaro Cardenas has inland rail options, which have very limited access to the U.S.
USEC & Gulf gateway. While carriers can make it through Panama and Suez, it is likely the International Longshoremen’s Association will refuse to work vessels that were meant to unload at the USWC due to their brotherhood of workmanship. Also, carriers might discharge cargo at main transship points of Panama, Cartagena, and Colon and declare force majeure. Customers will pay the incremental cost to move their containers to each destination if force majeure is declared.
USEC Halifax or Montreal. Though Halifax is an option, it only utilizes the CN, which has limited capacity. Montreal, however uses the CN and Canadian Pacific Railroad and is a better option for IPI cargo. But Montreal’s low-water tides can create problems for larger vessels. It makes planning for carriers extremely complicated.

Intermodal Transport

 Be ready to consider several different modes of transportation for your cargo to ensure a timely arrival no matter the port of arrival.
Though there are many choices, it is unlikely any action will be as effective as keeping the ports open. So, let’s root for an agreement instead and plan for the worst incase.
Please call us at 855-214-2844 or email international@elangham.com for up to the minute updates, or to help move any of your shipments.

Supply Chain Management Can Make or Break your Business

Supply Chain Management Can Make or Break your Business

There are certain elements of business that can make or break a company, and supply chain management is one of those.  A supply chain is a system of companies, people, information, and resources involved in moving a product or service from a supplier to a customer. When the managing of this supply and demand network breaks, the results can impact many other departments and can slow a company’s progress substantially. To manage the supply chain in business is to streamline the company’s supply-side activities in order to maximize profits, improve customer value and benefit competitive advantage within a market. Because so much hinges on productive supply chain management, improper management can be devastating.
The Nuts and Bolts of Supply Chain Management
There are many different aspects of supply chain management, which encompasses the flow of information, materials and finances within an organization. All three of these elements play a role in every step of a product’s movement from the manufacturer to the consumer. Supply chain management can also involve the movement of products to wholesalers and retailers, as well as the return of products from consumers to retailers. Essentially, supply chain management involves the entire life cycle of the product, which exemplifies why it is so integral to the success of a company. Through effective supply chain management, an organization may truly flourish.
 
Tips for Managing the Supply Chain
1.) Mitigate risk in the management of your supply chain.
Respond efficiently and adequately to disruptions that occur. Through analysis and planning, identify potential issues in the supply chain, and then create a structured approach to risk management. Some of these supply chain interruptions will be preventable, while others in your business will only be able to be responded to once they occur. Learn to distinguish between the two and prepare a specific course of action. It is also important to understand what operating risks exist within the industry in order to anticipate potential disasters.
2.) Strengthen links in the supply chain.
Analyze each step in the supply chain to determine where strength and value can be added. A supply chain managed more effectively before disruptions occur may allow for your business to bounce back more quickly and with a less negative impact on the bottom line. Improvements in cost-effectiveness and efficiency of the supply chain before issues occur may greatly mitigate their impact. It will benefit your business to monitor the performance of each step to determine where revenues and productivity may be impacted. Establishing metrics for measurement and tracking are required.
 
3.) Optimize and protect profits.
Even small optimizations can have  a profound impact on the bottom line. Consider improving technologies, cutting costs, adding links and removing links where necessary to optimize the supply chain. The best way to protect profits is to gain as much control as possible over every step in the entire process, from start to finish.
The Bottom Line
Supply chain management is an essential part of any business. Whether you are manufacturing and retailing a product or buying and reselling one, how you manage your supply chain can mean all the difference in your bottom line. Taking steps to protect and improve upon your supply network now can make it simpler to avoid and deal with disruptions that may occur in your business over the long haul.

Crisis Management: What do you do when a supplier suddenly goes out of business?

One of our customers was recently hit with a crisis— one of their suppliers suddenly went out of business. In addition to material sourcing issues, legal and accounting problems were adding to the mound of growing concerns. To add further frenzy to the mix, these products were built to order, which meant that the customer didn’t maintain a safety stock. With only a few days warning, they were left without the parts to manufacture the products needed to meet customer demands.

Unfortunately, things like this happen even with the most advanced technology and planning tools available. When customers are hit with the inevitable disaster, flexibility and rapid response are essential to help get businesses back on track. During times of crises, when your primary concern must be to resolve the situation and keep your customer calm and happy, an extremely valuable and welcome resource is a trusted partner to help you get through it. As a 3PL provider, our job is to manage the logistics aspects of the crisis so that our customer can focus on delivering quality customer care and ensuring that their core business continues uninterrupted.

For this particular situation, our customer quickly agreed with their current supplier to purchase the existing inventory until they could source a new supplier. This wise move bought them enough time call to Langham Logistics to enlist our aid in managing the crisis. With our numerous partners in transportation, we were able to secure the equipment needed to relocate all of the available stock to our Indianapolis warehouse. In addition, we sourced partners that would be able to make multiple runs to replenish the supply as customer orders were created. By working together as a team, our customer was able to focus on sourcing a new parts supplier, while maintaining their customer’s satisfaction, with Langham focusing on the logistics.

For more information on how Langham Logistics can help your company in a time of crisis, call our emergency hotline at 1-855-TRANS911.


Indiana Railroad Improves Transit Times for Imports

With the Indiana Railroad Company and the Canadian National Railway (CN) agreeing to a long term partnership, Indiana companies now have access to a robust network of rail lines with the potential to shave 10 days transit times off imports from Asia-Pacific manufacturers.

The recently formed partnership combines nearly 20,000 miles of railways in Canada with over 500 miles of railways operated by the Indiana Railroad. There are many advantages for Indiana businesses, but among the most compelling is the chance to save on total transit times. Here’s how the partnership will reduce these times for your imports:

1.) The ocean shipping lanes into Vancouver and Prince Rupert have significantly shorter sailing times than the shipping lanes into the US Ports.

2.) The Canadian ports are much less congested than the west coast ports in the United States. Less congestion at the port allows imports to clear customs and get on the rail very quickly.

3.) The rail route from the west coast of Canada avoids the major mountain ranges in the US, saving up to a day in total transit time.

4.) Using the CN and the Indiana Railroads, imports travel through Joliet, IL rather than the overly congested Chicago, IL rail yard.

5.) Shorter drayage travel distance and access to more drayage providers in Indiana.

If you are an importer of goods from the Asia-Pacific region and would like to explore this opportunity, Langham Logistics can help. If you are an exporter to Asia-Pacific, this new partnership can benefit you too.


Saving Millions by Switching from Air to Ocean

As a world-leading biotech company, this company wanted to transition their products from the air to the ocean, significantly cutting their transportation spend. Temperature compliance was the highest priority as each container was valued at $1.5 million. The second priority was delivering the product on time, which can also prove to be difficult for ocean transportation.

Download our case study below and learn how Langham’s custom solutions help save this biotech company millions.