eShipping CTPAT Certified as a Customs Broker and Freight Forwarder
Effective July 18, 2024, eShipping is now CTPAT certified (Customs Trade Partnership Against Terrorism) as a customs broker and freight forwarder. To the casual observer, this designation may look like just another business acronym, but for those involved in logistics and aware of ongoing market challenges, this certification is the gold standard for service providers who strive for best-in-class throughout their operations.
The CTPAT certification is a testament to the hard work and dedication of the eShipping team, who has diligently worked to meet the stringent requirements of the CTPAT program. This certification will provide several benefits to customers and partners, including enhanced security, efficiency, and reliability throughout the supply chain. Here are a few of the key advantages:
Reduced Examinations: CTPAT-certified logistics companies will benefit from a reduced number of CBP examinations and may potentially be exempt from Stratified exams.
Priority Treatment: During times of heightened security or customs inspections, CTPAT-certified companies are often given priority for front-of-the-line inspections, minimizing disruptions to the supply chain and ensuring more consistent delivery schedules.
Faster Customs Processing: CTPAT-certified companies experience expedited customs processing, including access to FAST lanes at land borders and shorter wait times at the Canada and Mexico borders into the United States. This leads to improved supply chain efficiency for customers.
Trusted Trade Partner: Foreign customs administrations with mutual recognition agreements with the United States will recognize eShipping as a trusted and reliable partner.
Partnership with U.S. Customs and Border Protection: Being part of the CTPAT program fosters a collaborative relationship with CBP and leads to quicker resolution of issues including prioritizing eShipping for business resumption following a natural disaster or terrorist attack.
Enhanced Security & Cost Savings: eShipping customers can rest easier knowing their goods are being handled in accordance with stringent security standards and enjoy savings associated with reducing the risk of losses and associated costs.
Improved Supply Chain Visibility: CTPAT certification requires logistics companies to implement robust tracking and monitoring systems. eShipping customers already benefit from visibility and transparency throughout the shipping process, but new requirements through the CTPAT certification enhance customers’ ability to track their goods more accurately.
Market Differentiation: Customers working with CTPAT-certified logistics companies like eShipping can use this as a differentiator in their own business, demonstrating a commitment to security and compliance, which can enhance their reputation and customer trust.
If your company is also CTPAT certified, eShipping would like to connect with you through the Status Verification Interface (SVI) portal. If you would like to verify our membership status, please contact us and we will gladly provide proof of our certification via a letter from the U.S. Customs and Border Protection.
For questions regarding our CTPAT certification, please contact Marketing@eShipping.biz to be routed to a logistics specialist.
Live Webinar: Cargo Theft & Fraud
With the alarming increase in cargo theft and fraud in North America, this trend is of great concern to the entire industry, from 3PL to carriers, brokers, shippers, vendors, insurance companies, and financial institutions.
Join eShipping as we host a panel of experts and take a deep dive into current challenges and practical solutions:
Safeguard Your Supply Chain: Practical Steps to Address Cargo Theft and Fraud
Thursday June 20, 2024
11am-12pm CST
Who Should Register
Shippers (C-Level, Supply Chain Managers, and Logistics Teams
Logistics Professionals
Freight Carriers and Brokers
Risk Managers
Security Personnel
Insurance Professionals
What You’ll Learn
Which shippers are most at risk and why
Different methods used by fraudsters and thieves
Practical steps you can take within your own business to mitigate your risk
How eShipping works alongside and coaches shippers and their vendors to create a united front against cargo theft and fraud
Our Webinar Panel
Jordan Graft, Founder & CEO, Highway
David Pasco, VP of Sales, Roanoke Trade Insurance Group
C. Fredric Marcinak, Founding Partner, Moseley Marcinak Law Group
Jeff Tawney, Chief Operating Officer, eShipping
Brandon Kraal, SVP of International, eShipping
Luke Helm, SVP of Distribution, eShipping Distribution Services
Need to Report Cargo Theft or Fraud?
As a company, eShipping is often able to thwart attempts at theft and fraud with current preventative measures in place. But when an incident does occur, we are ready to mobilize our operations team to find a resolution and minimize the impact to your business.
To report theft or fraud call our hotline at (816) 548-3779.
Safeguard Your Supply Chain
With the alarming increase in cargo theft and fraud in North America, this trend is of great concern to the entire industry, from 3PLs to carriers, brokers, shippers, vendors, insurance companies, and financial institutions.
With the alarming increase in cargo theft and fraud in North America, this trend is of great concern to the entire industry, from 3PLs to carriers, brokers, shippers, vendors, insurance companies, and financial institutions. With thieves and fraudsters only getting more emboldened, better organized, and increasingly dynamic in their strategies, the situation is not going away any time soon.
WHO IS MOST VULNERABLE TO THEFT AND FRAUD?
Cargo theft and fraud can happen to anyone. However, the most common targets for theft and fraud are those manufacturing or transporting electronics, pharmaceuticals, high-value consumer goods, and food and beverage products.
FRAUDULENT METHODS TO WATCH OUT FOR
There are many types of fraud that 3PLs, brokers, shippers, and vendors must be aware of and prepared for:
Phishing and email domain copying to obtain shipment information and confirmations online.
Fictitious pickups where fraudsters disguise themselves as legitimate carriers to gain access to and steal shipments.
Trailer and container theft where thieves either steal the trailer or break into a trailer or container to steal freight and resell whatever they can.
Double brokering where fraudsters obtain a load from a broker and then brokers it again to another carrier.
Load Partialing when fraudsters cleverly unseal the doors (while going undetected) of a single-customer truckload trailer so they can add another customer’s freight to that load to maximize profit.
COOPERATION AND COORDINATION TO MITIGATE RISK
To battle cargo theft and fraud, there must be cooperation, coordination, and continual communication between customers and transportation management providers like eShipping. Shippers and vendors have the most firsthand contact with drivers and carriers on a load-by-load basis, so the term, “it takes a village” applies more than ever as we work together to deploy stringent precautions and operational processes amongst various teams involved.
At eShipping a cross-functional group representing Operations, Warehousing, Finance, Account Management, and Leadership Team are delivering on a fraud mitigation strategy centered around preventative action, stringent operational processes, new technology, effective communication, customer education, and employee training.
NEW TECHNOLOGY & OPERATIONAL MEASURES
eShipping has partnered with Highway®, a market leader in carrier vetting and monitoring to ensure our team is doing everything within our control to identify, report, and avoid deceptive tactics. Carrier profiles with contact verification, peer reviews, and pattern recognition help our team confirm carrier identities before a load is discussed or picked up. In addition to our use of the Highway platform, eShipping maintains strict carrier vetting procedures including requiring each carrier to sign a carrier-broker agreement while only allowing carriers with satisfactory or unrated safety ratings. Our team has also implemented capacity testing strategies that completely avoid load boards, so fraudsters no longer have visibility into cargo details.
REPORTING THEFT OR FRAUD
As a company, eShipping is often able to thwart attempts at theft and fraud with current preventative measures in place. But when an incident does occur, we are ready to mobilize our operations team to find a resolution and minimize the impact to your business. To report theft or fraud call our hotline at (816) 548-3779.
JOIN OUR WEBINAR JUNE 20, 2024 TO LEARN MORE
Register to join eShipping as we present Safeguard Your Supply Chain: Practical Steps to Address Cargo Theft and Fraud on June 20, 2024. We’re bringing together industry experts spanning transportation, warehousing, technology, insurance, and legal to discuss the current state of the industry, the impact of cargo theft and fraud, and tactical ways to mitigate risk across the supply chain.
Jordan Graft (Founder & CEO, Highway®)
David Pasco (VP of Sales, Roanoke Trade Insurance Group)
C. Fredric Marcinak (Founding Partner, Moseley Marcinak Law Group)
Jeff Tawney (Chief Operating Officer, eShipping)
Brandon Kraal (SVP of International, eShipping)
Luke Helm (SVP of Distribution, eShipping Distribution Services)
Baltimore Bridge Collapse & Port Operations Update
News out of Baltimore continues to unfold after the collapse of the Francis Scott Key Bridge when a container ship “Dali” collided into it early Tuesday 3/26/24. The bridge collapse sent vehicles into the water and a large-scale search and rescue is underway. eShipping continues to hope for the safe return of those missing. Vessel traffic into and out of the port of Baltimore has been suspended indefinitely. Traffic congestion around the port is very heavy due to detours. The port has ceased accepting all exports containers until further notice.
Impact on eShipping Customers:
Fortunately, the containers on this vessel for eShipping customers were all discharged prior to the incident. However, this situation will create significant issues all along the East Coast for U.S. importers and exporters. As of the time of this mailing, the bridge collapse “effectively sets up a wall between the port in Baltimore and the Chesapeake Bay,” according to Freight Waves. This means that for the time being, it will not be possible to get to the container terminals (or a range of other terminals) in Baltimore.
Inbound vessels such as the 9000 TEU “MSC Alina” have rerouted to the next port of call in Savannah while other vessels scheduled to call the port in Baltimore are working to adjust their routes. eShipping’s international team will remain vigilant in monitoring the continual routing updates and assisting eShipping customers with making alternate arrangements, as available. Ocean carriers may claim Force Majeure and discharge containers at alternative U.S. East coast ports. We expect most ocean carriers to omit the port of Baltimore until it is deemed safe for passage.
Please contact your eShipping Account Manager or International Operations representative with any questions or concerns.
eShipping International Department
Intl@eShipping.biz
eShipping Announces Closing of Two Strategic Acquisitions
Superior Transport & Logistics and Synapsum Enhance Platform’s Offering and Leadership Team
Kansas City, MO (February 27, 2024) – eShipping, a tech-enabled, asset-light provider of managed transportation and logistics services, today announced the closing of two strategic acquisitions as the company continues its growth trajectory – Superior Transport & Logistics and Synapsum. Superior Transport & Logistics is a leader in custom transportation solutions, including less-than-truckload and truckload brokerage, parcel services and transportation management systems. Synapsum is a leading supply chain analytics software provider that delivers proprietary data solutions for shippers to improve margins by connecting data across sales and logistics. These recent acquisitions further strengthen eShipping’s competitive position and ability to provide more custom data, insights, and visibility for its shippers.
“We are pleased to welcome Superior Transport & Logistics and Synapsum to eShipping,” said Chad Earwood, Founder and CEO of eShipping. “Both businesses add strategic capabilities and critical talent to our growing platform. Superior Transport & Logistics is a very logical partner that offers complementary managed transportation services to eShipping’s existing solutions. Synapsum is a strategic asset with differentiated technology and capabilities that combine well with eShipManager® and Global Data View® to bring shippers margin visibility and more pathways to optimize the distribution chain.”
Earwood added, “eShipping’s goal is to be a value-added partner to shippers’ entire distribution chains, providing both visibility and execution across key modes and services, delivered in a seamless technology platform. In pursuit of this mission, over the past decade, we have expanded our capabilities to include less-than-truckload and truckload brokerage, international air and ocean services, customs brokerage, parcel, final mile, drayage and warehousing services. We deliver these services through our eShipManager® technology platform to provide supply chain visibility and optimizations for efficiency. Increasingly, customers are demanding multi-modal capabilities, and our approach seems to be resonating in the marketplace. We are excited to keep making progress to better serve our customers and create value for all stakeholders of eShipping.”
eShipping has successfully completed multiple acquisitions since its 2021 recapitalization, led by Ridgemont Equity Partners and management. The company continues to pursue opportunities to partner with third party logistics providers that share the same commitment to team culture and data-driven solutions that support shipper customers’ most demanding supply chain needs.
About eShipping
eShipping is a leading, tech-enabled, non-asset based provider of managed transportation services. Through its proprietary eShipManager® platform, the company offers a full suite of outsourced logistics solutions, including freight optimization and management, less-than-truckload and truckload brokerage, international air and ocean services, customs brokerage, parcel, final mile, drayage, warehousing, and distribution. eShipping is headquartered in Kansas City, Missouri, with regional office locations and distribution centers across the United States. www.eShipping.biz
Freight Delays Due to Hurricane Ida - Industry Update
Hurricane Ida is a dangerous tropical storm that has hit the Mississippi coast. It is headed northeast, affecting Alabama and Florida, according to the National Hurricane Center. Due to the severity of the storm and the need for people to evacuate the area, shipping for all modes in the area will be affected.
eShipping LTL and TL Shipments
The eShipping operations teams for all modes are monitoring any shipments that may be impacted by Hurricane Ida. The eShipping team will notify customers with any shipment delays due to the storm. We anticipate continued power outages in the path of the storm that already has (or will) impact shippers and receivers. Below is a sampling of notifications from various carriers. If you have any questions regarding any specific shipments, please contact your eShipping account manager or the Client Care team at ClientCare@eShipping.biz.
Due to extreme weather and mandatory evacuations along the Gulf Coast, we are taking operational precautions for the safety of our personnel and customers. We will continue to monitor the path of Hurricane Ida and provide updates on facility closings and service suspensions in impacted areas and areas of potential impact.
In preparation for Hurricane Ida, the following facilities will be closing on Mon, Aug 30, 2021:
Alabama
Mobile: OPEN, with limited service
Due to flooding in areas to the west of Mobile, there will be no pickup and delivery service to any areas in Mississippi serviced by the Mobile service center on Monday, Aug 30.
Louisiana
Baton Rouge: CLOSED
New Orleans: CLOSED
Mississippi
Jackson, MS service center and warehouse: CLOSED
Meridian: OPEN, with limited service
Due to flooding in the area, there will be very limited pickup and delivery service in the Meridian service area on Monday, Aug 30.
In preparation for Hurricane Ida, the following facilities will be closing on Mon, Aug 30, 2021:
Louisiana
Baton Rouge: CLOSED
New Orleans: CLOSED
Mississippi
Jackson, MS: CLOSED
Due to Hurricane Ida, the following terminals will be either closed or limited in status for today:
Closed:
JAM-075
HAM-085
Limited:
AXL-057
MOB-109
TPM-167
New Orleans Terminal and Ports America for containerized operations will be CLOSED Monday, August 30, 2021.
Empire, Coastal Cargo, Gulf Stream Marine and Ports America for breakbulk operations will be CLOSED Monday, August 30, 2021.
Hurricane Ida made landfall Sunday along the coast of Louisiana and Mississippi as a major category 4 storm. The storm system brought damaging winds and flooding, prompting mandatory evacuations, road and customer closures across multiple service territories. Forecasts suggest tropical storm/depression conditions to continue throughout the remainder of day as the storm moves North/North East. As a result, the zip codes tied to the following service center areas are embargoed:
Service Center Areas Embargoed:
Jackson, MS (JCK) - New
New Orleans, LA (NRL)
Baton Rouge, LA (BTR)
Lafayette, LA (LAF)
Mobile, AL (MOB)
Orange, TX (OTX)
Please continue to check our website for updates at the link below.
Weather Alert/Map: http://www.sefl.com/seflWebsite/new/weatherMap.jsp
5 Tips to Navigating Unprecedented Ocean Freight Market
Just when we thought the international shipping market from Asia to the United States couldn’t get any more challenging … we’re thrown one more curveball. Due to a Covid-19 outbreak, the port of Yantian is now closed as of 6/8/2021, adding more chaos to an already fragile supply chain. With nearly every vessel scheduled to call at Yantian cancelled, the backlog of containers at the port now surrounds roads and suburbs, according to HLS Holding.
As we reach the midpoint to this year, we continue to see record-breaking ocean freight rates from Asia to USEC and space and equipment shortages reaching unprecedented levels in the eastbound trans-Pacific. According to the Journal of Commerce, “What should be a 35-day transit time from Shanghai to Chicago is now 73 days.” With drayage rates nearly double their standard and a truck driver shortage, U.S. importers should prepare for continued volatility through the summer. READ MORE HERE
eShipping recommends the following tips for all U.S. ocean importers:
Book your suppliers 4-6 weeks in advance of the cargo “ready date” to assist in securing equipment and space
Be open to using alternative equipment and routing options, as creative solutions are a necessity in this market
Split multiple container bookings into single container bookings
Be flexible on your receiving schedule, as U.S. dray capacity is extremely tight
Prepare yourself for continued challenges, and know that eShipping is doing our best to help you navigate these unprecedented times
Is Capacity-as-a-Service the Future of Trucking?
A recent Freight Waves article features an interesting spin on the continuing transition to “as-a-service” (aaS) business model and its relevance in the transportation industry. SaaS-based technology solutions such as TMS, WMS, etc. have long been part of the freight brokerage space, but trucking companies are now following suit.
In today’s market where capacity continues to be tight, carriers engaging in the Capacity-as-a-Service business model “use their trucks to sell an outcome, and in transportation that outcome is a positive shipping experience from pickup to transit to on-time delivery.” READ MORE
Shipment Visibility - A Necessity, Not A Luxury
Complete Shipping Visibility Is a Necessity for Shippers — Not a Luxury
Shipping visibility is more important now than ever before as supply chains work overtime to overcome pandemic-driven service interruptions and soaring transportation costs.
Visibility enables companies to increase logistics efficiency and effectiveness. This includes details like verifying the selection of a particular mode and whether it achieved the intended economic impact, whether it enabled the intended level of service, and reduced inherent risk of not meeting your customer’s service expectation.
How do you get complete shipping visibility? It requires having the right technology, such as:
Data visualization tools like Microsoft® Power BI® that allow customers to interact with and better interpret distribution chain performance on both a macro and micro-level
A Transportation Management System that enables multi-carrier quoting, dispatches and tracks shipments, automatically updates shipment activity, manages complex documentation, and creates invoices
Warehouse Management System applications that oversee day-to-day warehousing operations by guiding inventory receiving/stocking, optimizing picking/shipping processes, and reporting on inventory replenishment needs
For some shippers, creating this level of visibility enables you to take more control of your supply chain. Here are five of the top benefits shippers can look forward to when implementing leading tech-enabled solutions:
1. Removing the Guesswork
At the core of every efficient shipping operation are processes that ensure smart and faster decision-making. Shippers can leverage the power of algorithms to digitize order assignment and free up time to focus on more complicated tasks. The ability to process orders in seconds and send them to the best carrier simplifies more traditional manual processes. With warehousing and transportation management software, your company can quickly and accurately automate front-end as well as back-end tasks, which eliminates human error and removes the guesswork on your end.
2. Maximized Deliveries in the Fewest Miles Possible
Gone are the days of route planning done with paper maps or simply doing things based on “the way it’s always been done.” Intelligent distribution management software can provide optimized routes to drivers, so they can deliver shipments faster. You could save time, fuel, and increase your earnings by integrating new technology that helps streamline driver routes for the best performance and shortest route distances with the highest stop density. Certain systems can also assign deliveries based on service level and vehicle requirements, as well as driver geographical position, availability, and workload.
3. Tracking Deliveries in Real Time
While not the only type of visibility (as we’ve hopefully made clear here), track and trace is still a very important part of any distribution chain. With the ability to track deliveries in real time, nothing gets lost. End-to-end tracking, through a combination of technology and logistics partner team members, allows you to anticipate slowdowns or delays before they become a problem. You can address on-the-fly situations by implementing new systems that enable bi-directional communication and in-transit alerts between you, your customers, and your logistics partners. This kind of technology can also help you provide exceptional customer service that sets you apart from your competition.
4. Increase Supply Chain Collaboration and Agility
Shipping will always require issues to be resolved, it’s the nature of the business. And, good communication is always required for most any type of problem resolution. A distribution management platform will elevate communication. In the face of rapid change, logistics companies also need a flexible solution that allows their supply chain operations to stay fluid. Find a system that gives you increased collaboration opportunities and operational agility, so you can stay on top of things and better scale your business.
5. Gain Actionable Business Intelligence
Visibility is also not just about the day-to-day, there are long-term and strategic benefits as well. The information you gain from comprehensive visibility can give you total insight into critical data analytics related to order fulfillment, carrier performance, profit margins, forecasting trends, etc. Your company can use these tools to deliver actionable business intelligence, saving your team time and money in addition to helping you offer seamless service.
Leveraging technology and working with an experienced distribution chain management partner will help give you that competitive edge that can be so hard to come by. By taking a more automated approach, you can achieve the visibility you need to increase productivity and decrease freight costs.
To learn more about eShipping’s dedication to “All Modes, All Optimized, All Visible” and helping companies take control of their distribution chain through people and technology, click here.
Nature’s Logic and eShipping Attain Carbon Neutrality for Distribution
Nature’s Logic, the pioneer creators of 100 percent natural pet food with no synthetic vitamins, and eShipping, a nationwide distribution chain management services and technology provider, announced they have achieved 100 percent carbon neutral shipping and warehousing for Nature’s Logic.
“This is a major milestone for the pet industry,” said Nature’s Logic CEO David Yaskulka, chief executive officer at Nature’s Logic.
“We’re thrilled to help Nature’s Logic achieve carbon neutrality,” said Chad Earwood, founder and CEO of eShipping. “Nature’s Logic is our first carbon neutral client, but we’re confident this will create a path for many more to come. As a business in the transportation and logistics space, this partnership also serves as a catalyst for our team to continue looking for ways to minimize our own environmental impact in our office and warehouse locations nationwide.”
Toward that goal, eShipping also joined the Pet Sustainability Coalition as a Sustainability Champion level member. The carbon footprint of Nature’s Logic’s distribution at eShipping is calculated by measuring warehouse space, warehouse power sources (some of which were already using renewable electricity), and every aspect of its shipping, including types of transportation (such as TL, LTL, rail and ship), weight of cargo, and distance.
The program’s carbon offsets are provided in partnership with Natural Capital Partners, recently named the best Voluntary Carbon Market offset provider by Environmental Finance for the 10th consecutive year. The social impact of the program is significant, investing in:
Two wind farms in Tamil Nadu, India with a total capacity of 74.25 MW, delivering approximately 100,000 MWh of clean renewable electricity
Forest protection and the distribution of clean cookstoves in Africa, targeting the conservation of approximately 170,000 hectares of forest and promoting biodiversity.
Reducing the environmental impact of a landfill site through methane capture, electricity generation and wetland enhancement in North America.
Nature’s Logic also works with Nori for additional offsets supporting regenerative agriculture, and Ecodrive, planting 2,000 mangrove trees. The company is the premier sponsor of TreePlenish, a non-profit organization that is planting 15,000 trees with the help of high school students this spring.
“Setting and reaching a carbon neutrality goal is no easy task,” said Caitlyn Dudas, executive director of the Pet Sustainability Coalition. “Nature’s Logic is setting an exciting pace within the industry that will be hard to follow by many but sets the stage for others to take similar action toward a better future for pets, people and planet.”
The Power of Pool Distribution
The Power of Pool Distribution
If you’re managing a high volume of Less Than Truckload (LTL) shipments across different regions, and you’re trying to lower freight costs in addition to transit times (especially for your longer hauls), then hopefully you’re familiar with pool distribution.
Before we can dive into the many uses and benefits this approach has to offer, let’s first establish what pool distribution actually is. Similar to LTL, pool distribution is the process of consolidating different shipments with others that are heading to the same geographic region. Contrasting LTL, however, pool distribution is typically shipped together with other product from the same origin to a location closer to the consignees and sorted there, whereas LTL is usually sorted closer to its origin, then line-hauled to network terminals for final delivery.
The name comes from using a full trailer to transport the “pooled” shipments to a single regional distribution center, or “pool point facility,” located within the main area hub, where they are then offloaded, re-sorted, and sent out for delivery to their final destinations. So, for example, if you have a group of shipments that need to be delivered throughout the southeast in cities such as Atlanta or Memphis. Rather than resorting to typical LTL freight consolidation, you would arrange for these goods to be loaded onto a full truck, schedule drop-offs at a center in these respective cities, and let the local distribution network handle the final deliveries from there.
Major Uses
In order for pool distribution to make sense for your situation, you’ll not only need to have sufficient volume going to the same geographic region, but also a critical mass of consignees. With not enough consignees, a multi-stop Full Truckload (TL) can become a more economical (and faster) option. At the same time, without enough volume or density of destinations, a shipper may be better off using LTL.
But with planning and some extra coordination, shippers of any size can pool their goods to save transit-time and money because with the help of an established third-party logistics provider (such as eShipping), you can easily take part in pool distribution. 3PLs can similarly help companies, small or large, more effectively coordinate the many moving parts the process requires.
The benefits of pool distribution are significant and make it an option worth considering, including:
1. Faster delivery speed
Compared to LTL, pooling products together reduces the number of stops a truck needs to make, so you’re transitioning from routes full of frequent stops at many locations to one long hike with a single stop at a pool point facility at the end. After that, you only have that last mile to worry about before the goods arrive at their final destinations. An advantage exists compared to LTL which usually requires two or more stops at the carrier’s terminals versus just one for a pooled load.
2. Reduced freight costs
Generally speaking, the longer a Full Truckload (TL) can drive without stopping, the lower the costs to operate it – from driver time to fuel to mechanical costs. This is why TL is usually the lowest cost method of shipping any type of over-the-road freight and why LTL is commonly more expensive on a cost/lb or cost/unit basis. Pool distribution is a perfect in-between of TL and LTL because it maximizes the flexibility to make a large number of deliveries and the cost efficiency of a long-haul truck.
3. Decreased risk of damages and insurance claims
Given that pool distribution generally includes only one initial loading/unloading, the risk of a shipper’s product being damaged in transit decreases, which in turn, decreases the number of insurance claims a company may need to file. When the likelihood of problems goes down, it’s a win for both you and your customers.
4. Minimized carbon footprint
When you pool shipments, you also cut down on carbon emissions and waste because fewer trucks, less fuel, and reduced miles equate to substantial energy savings. For those looking to make their supply chain operations a little greener and more socially responsible, it’s one of the most eco-friendly shipping solutions on the market.
It Doesn’t End There
In the past, many shipping professionals struggled to manage dynamic pool distribution routes due to their reliance on outdated, manual systems. Today’s technology, however, streamlines a traditionally manual or Excel-based transportation management approach by bringing real-time tracking and other automated optimization tools to the table.
Once you integrate technology into your pool distribution strategy with the expertise of the eShipping team, you’ve positioned your logistics operations for improved cost efficiency and service performance.
Read our latest case study HERE about how eShipping helped one of the largest U.S. tire manufacturers reduce their costs and increase transit speed through a pool distribution strategy.
Visit eShipping.biz to learn more about how eShipping’s comprehensive supply chain management services can help your company unlock the true power of pool distribution.
Case Study: Leading Tire Manufacturer Utilizes Pool Distribution
Synopsis: A leading U.S. tire manufacturer reached its goals to reduce costs and increase transit speed by partnering with eShipping.
This leading tire manufacturer designs, manufactures and sells tires for every type of vehicle. They also offer a full range of innovative services and solutions that help make mobility safer, more efficient, and more environmentally friendly.
This manufacturer had three main goals they wanted to achieve: 1) reduce freight costs; 2 minimize product touches in transit; and 3) increase transit speed. However, limited LTL capacity challenges along with increased shipment prices stood in their way.
THE GOAL:
FIND A WAY TO LOWER SHIPPING COSTS, REDUCING PRODUCT TOUCHES IN TRANSIT, AND INCREASE TRANSIT SPEED.
The company had three main goals they wanted to reach, but there were two obstacles standing in there way: low LTL capacity and increased shipment costs.
LTL capacity was low due to a driver shortage, making it difficult to book shipments. The incumbent carrier was altering the available linear feet pricing, which had adverse impact to the shipper. This made their transit times unpredictable.
The reduced LTL capacity also meant higher prices for shipments and booking with whoever would take their freight. This prevented the company from reaching their goal of cost reduction. They were needing a logistics expert to help them navigate the difficult market and reach their goals.
THE SOLUTION:
PARTNER WITH A LOGISTICS EXPERT TO HELP NAVIGATE THE UNPREDICTABLE MARKET AND REACH THEIR GOALS
Through a mutual contact, this company partnered with the eShipping team to help them reach their goals. eShipping reviewed their freight and crafted a solution. eShipping suggested a pooled distribution method between five states, using one load from the warehouse to a specified city, and then distributing the freight from there to the final destination cities.
WHY POOL DISTRIBUTION?
Through Pooled Distribution, the company would be using less trucks. This will reduce their costs, minimize their carbon footprint, and increase their transit speed. Because they partnered with eShipping, they will also have visibility throughout the whole process.
THE RESULTS:
This customer remains incredibly pleased with the outcome of this initiative. It was a simple quarter turn to their robust transportation strategy, but it made a huge impact for their company and in turn, their customers.
Reduced shipment costs
Minimized carbon footprint by 50%
Visibility to increased transit speed
Suez Canal Update: Ever Given was Refloated, Transit Expected to Resume This Evening
Update as of March 30, 2021
The vessel, which blocked the shipping artery for more than a week, has been towed to a lake further along the canal where it will undergo checks.
As many as 370 vessels were waiting to pass along the canal before the vessel was freed, with an estimated $9.6bn worth of goods being held up each day.
“We will continue to see the unfolding of congestion issues in Europe as the cargo arrives, blank sailings resulting from the severe delay of many vessels as well as a deterioration of the equipment situation. These ripple effects will take several months to be fully worked through.”
From Hapag
Traffic through the Suez Canal has commenced. The southbound convoy entered the canal this morning with 48 ships that moved from Port Said anchorage to the Great Bitter Lake. The northbound convoy is planned for direct transit this morning with 25 vessels.
For more information, please read this update from Air Cargo News: Suez containership freed but supply chain delays to continue
Update as of March 29, 2021
The vessel EVER GIVEN was refloated in the early morning of March 29 after the ship responded to the tension and towing maneuvers. The maneuvers are scheduled to resume again as the water level rises to its max height which will allow the ship’s course to be completely modified. It will be towed to Great Bitter Lake for inspection. Towage operations for the vessel should commence very soon during high tide. Any damaged area of the canal will be inspected and repaired if necessary. It’s uncertain how long it will take to assess the damage and if any containers will need to be removed.
According to Hapag, they expect transits for other vessels to start later this evening. The current backlog should be cleared within four days. Ocean carriers do not know the exact ETA of their affected vessels yet, but will due their best to optimize their rotations in order to minimize potential bottlenecks at ports and terminals
eShipping has already notified customers of any shipments that have been impacted due to the situation.
For more information, please read this update from NPR: 'She's Free': Giant Container Ship Blocking Suez Canal Underway After Days
Suez Canal Blockage Affects Commerce Worldwide
We want to provide you an update: The Suez Canal has exceeded 36 hours of canal closure due to the grounding Ever Given, and efforts to float the vessel at high tide were unsuccessful.
According to the Journal of Commerce:
The Ever Given remains grounded in the Suez Canal, blocking more than 30 other container ships from transiting the primary waterway connecting Asia with Europe, after attempts to refloat the ship were suspended last night, according to the canal authority and its main shipping agent.
The Suez Canal Authority (SCA) said Thursday that navigation will remain suspended until it can fully refloat the 20,000 TEU Ever Given, which ran aground while transiting northbound in the southern end of the canal on Tuesday morning. The SCA said the eight large tugboats it had deployed were only able to partially refloat the ship and two dredging vessels also had to be brought in overnight to dig the vessel out.
Peter Berdowski, the chief executive of Smit Salvage’s parent firm Boskalis, said in a Wednesday interview with Dutch TV program Nieuswuur that refloating the Ever Given could take a few days to a week due to the limited draft in the portion of the canal where it is grounded. As such, the salvage operation may include removing the containers and removing fuel from the vessel.
As of noon GMT Thursday, there were a total of 102 ships waiting at the southern Red Sea end of the canal, 22 of which are Europe-bound container ships with a combined capacity of 160,500 TEU. At the northern end in the Great Bitter Lakes, and at the Port Said anchorage, 60 ships are currently waiting, eight of which are container ships with a combined capacity of 42,500 TEU.
This incident is adding new pressure to global supply chains, and is affecting a tenth of the world's seaborne oil trade. Oil prices are already being driven up and could add further delays and increased costs to logistics operations.
For more information on the event, read the latest news from AP: Egypt races to dislodge giant vessel blocking Suez Canal.
We understand this event may affect your business. If you have any questions or concerns, please reach out to your account manager who can assist you.
Navigating International Ocean Freight
International Ocean Freight Market Analysis
The international ocean freight market is a mess right now, and that’s putting it mildly. As carriers continue to add more and more capacity to try and manage the recent flood of increased cargo demand, many ports are running into major infrastructure issues, especially in the U.S. In January, for example, an average of more than 30 container ships headed to the ports of Los Angeles and Long Beach were forced to anchor offshore in San Pedro Bay.
According to a report from Freightwaves.com as recently as the week of March 15th, there are currently 28 container ships anchored outside of the port complex. Terminal congestion is at critical levels with a few terminals at or above their capacity 73% - 114% in LA/LB and estimated at 85% in OAK terminals. Those ships unable to secure an anchor are being diverted even further offshore to idly wait in drift boxes until the traffic jam clears up enough to make room. While maxing out California’s offshore space is not a concern, these are unprecedented circumstances for the carriers and the shippers with freight onboard.
To put this situation into perspective, the port’s previous record for container ships held at anchor reached a total of 28 vessels and was the direct result of a labor union dispute that happened over six years ago in 2015. Prior to that, the all-time high record for the area was set during a shortage of rail staff back in 2004. On an average day though, it’d be common to only see around 12 anchored ships, and most of them wouldn’t even be container vessels. All of this goes to show just how out of control port congestion really is at this point.
With import volumes ramping up and no sign of relief on the horizon, these cargo delays are only going to continue. So, what’s causing this logistical nightmare?
Port Congestion Explained
Surprise, COVID-19 strikes again. The pandemic has not only played a large part in driving consumer demand, but it’s also taken a huge toll on port employees. When you add a labor shortage to an already constrained port terminal, you get a devastating combo of severe equipment imbalances, major freight delays, and unreliable shipment scheduling.
Containers aren’t returning empties to Asian origins fast enough to keep pace with growing demand, and because of these lengthier turnaround times due to port congestion and extended transit times, container ships are now being delayed by more than five days on average worldwide. Out of all of the major trade lanes, shipments are leaving Asian ports later than scheduled due to container equipment shortages and are then sometimes experiencing weather-related delays before reaching U.S. ports. As a result, ocean carrier on-time performance from Asia to USWC was 22.1% in December 2020, down from 70.9% in December 2019, while ocean reliability to the USEC fell to 26.3% from 70.5% (JOC.com). Taken altogether, this situation has created unheard of market conditions that are directly impacting freight rates.
Fixed Rates vs. Spot Quotes
Since container carriers control what scarce capacity is left, there’s no doubt that they’ve got the pricing power right now, and they are not hesitating to use it. According to Drewry, service contract negotiations are expected to shift into high gear in March and April, with carriers, NVOs, and shippers saying per FEU rates will increase noticeably from this year’s levels of about $1,350 to the West Coast and $2,350 to the East Coast. Except for the largest retailers, carriers are reportedly pushing for rates of about $2,600 to $2,800 per FEU to the West Coast and $3,600 to $3,800 per FEU to the East Coast. This means contract freight rates in eastbound trans-Pacific trade could increase by up to 65 percent more than the current 2020-21 contract rates over the next year, starting May 1.
As for spot quotes, rates from China/East Asia to the North American West Coast have almost tripled YoY — up 181 percent as of Thursday — to reach $4,261 per FEU based on Freightos Baltic Index data. Meanwhile, rates from China/East Asia to the East Coast are listed at $5,892 per FEU, which marks a 2 percent decrease from the previous week.
Benefits of a Fixed Rate Schedule
Considering the pricing dynamics in the spot rate market right now, medium to large BCO’s will be better off negotiating a fixed rate rather than playing the spot market. Here are some reasons why.
A fixed rate schedule:
Provides access to weekly freight capacity based on weekly MQC (min quantity commitment)
Eliminates unnecessary safety and financial risks by providing consistent less volative ocean pricing
Establishes long-term relationships that lead to more consistent, predictable & quality service
Provides more control over unknown market variables like additional fees and surcharges
Helps optimize freight scheduling
Increases freight budget accuracy
Provides KPIs for companies to measure carrier performance and drive improvements
Navigating the Insanity That Is the Asia To U.S. Import Market in 2021
Supply chain disruptions are at an all-time high, and while rate increases are inevitable, it’s important to make sure you’re strategizing the best approach to secure a level of service you can actually rely on for this next year. In order to navigate the current import market insanity, shippers need to focus on analyzing data (especially figures related to on-time performance and rolled cargo) they can leverage in upcoming carrier contract negotiations. If you want to avoid running into problems later, you should also start booking your loads for summer now.
Click here to learn more about how eShipping can help you better manage the chaos that is today’s international shipping marketplace.
eShipping Acquires Freight Solutions, a St. Louis-Based Logistics Provider
KANSAS CITY, MISSOURI – eShipping, a North American distribution chain management company, has finalized a deal to acquire the assets of St. Louis-based logistics provider, Freight Solutions.
Founded in 2011 by Walt “Wally” Brauer Jr., Freight Solutions serves customers throughout North America, Canada and Mexico, with a primary focus in Full Truckload services. This acquisition expands eShipping’s operations to six regional office locations, six warehousing and distribution centers and over 300 eShipping and eShipping Distribution Services employees nationwide.
Chad Earwood, Founder and CEO of eShipping, commented on the strategic decision, “We feel fortunate that the opportunity and timing of this acquisition worked to the advantage of both eShipping and Freight Solutions. As a team, we will continue to offer a robust All-Modes transportation solution in conjunction with our rapidly growing warehouse and fulfillment operations. Our collective focus on providing a high-service customer experience through our people and technology will be a powerful catalyst in the marketplace.”
eShipping is a distribution chain management services and technology provider headquartered in Parkville, Missouri. Their suite of domestic and international freight management services includes Less Than Truckload, Full Truckload, Expedited and Hot Shot, Freight Forwarding, Customs Brokerage, Parcel, Warehousing and Distribution, Claims Management and Freight Audit/Payment. At the core of eShipping’s services is their data services integrator, Global Data View, and proprietary TMS, eShipManager®, which provides end-to-end shipment management and visibility.
For more information on eShipping’s services and technology, visit www.eShipping.biz and www.eShippingDistribution.com.
UPS Encourages Shippers to Find Alternatives Amid Tight Capacity Ahead of Peak – Supply Chain Dive
We want to keep you informed on the latest market updates and news. Below is a summary of an article from SupplyChainDive.com regarding parcel shipping services through UPS and FedEx during the month of December:
UPS is encouraging customers to bring holiday volume forward and even avoid shipping when possible, as the carrier faces a hectic peak season. "We work with our customers to help them rethink their operations via buy online pick up in-store, different timing for their promotions and different availability of their packages," UPS CEO Carol Tomé said on a Wednesday earnings call. UPS domestic volume was up nearly 14% YoY in Q3.
Tomé has emphasized since she took the helm in June that UPS will use pricing and surcharges to navigate the e-commerce boom brought on by the pandemic. "There is a shift in certain customers who are more price-sensitive than others," she said. "We're okay with that." Domestic cost per piece was up 4.4% YoY in Q3 while revenue per piece increased 2.5% YoY in the same period. Adjusted operating profit in the U.S. domestic package market declined by 8.8%.
UPS and the other major parcel carriers levied surcharges or raised prices since the beginning of the pandemic — reflecting the lack of capacity in the parcel market. "Really what we're hearing is all of these
carriers, they are not accepting any new customers through the end of the year," Convey Founder Dan Bebout said in a webinar Tuesday. Customers need to be preparing their end customers for delays and issues that are going to be coming their way. 7,000,000 packages aren't going to be delivered, how have they prepared their customers for that?
Read the full article here: UPS Encourages Shippers to Find Alternatives Amid Tight Capacity Ahead of Peak
Mediterranean Shipping Lines Partners with Jotun to Install Hull Cleaning Robots
Jotun’s HullSkater technology is a robotic cleaning devise that scrubs the hull of a containership while the vessel is in-transit. A clean hull reduces motion drag resulting in lower fuel costs. Removing the buildup of biofouling materials also reduces CO2 emissions, slows the spread of invasive species, and minimizes vessel downtime and the costs associated with reactive cleaning.
Jotun believe that installation of their product can reduce annual fuel costs by $3.6 Million and lower CO2 emissions by 12.5% per vessel. Applied globally, this technology may prevent as much as 40 million tons of CO2 emissions each year.
MSC have signed the first commercial contract with Jotun, and plan to install HullSkater on the MSC Eva during a scheduled yard stop in Guangzhou later this year.
Full Article:
By Jasmina Ovcina
Norwegian-based Jotun has signed the first commercial contract for container vessels for its Jotun Hull Skating Solutions (HSS) with container shipping major Mediterranean Shipping Company (MSC).
MSC plans to install the Jotun HullSkater, a robotic technology that has been designed for proactive cleaning, on the 14,000 TEU MSC Eva later this year.
HSS will be installed at GWD Guangzhou Shipyard in China at the same time as MSC Eva undergoes class renewal and scrubber installation.
This is the first solution developed for proactive bio-fouling control on ships and offers the potential to reduce fuel costs by around $3.6 million and CO2 emissions by 12.5% annually, on a typical vessel, the company explained.
The robot is lodged in a custom housing on deck when not in use, roaming the vessel on magnetic wheels when operated through Jotun’s dedicated control centers via 4G connection.
Basically, once underwater, the unit is remotely controlled from a control center in Norway.
This way shipowners minimize the need for reactive cleaning, cutting fuel costs and optimizing fleet flexibility, Jotun said.
At the same time, ships can meet increasingly strict local and global regulations designed to protect marine ecosystems from alien invasive species.
“We have worked with MSC as a partner to provide premium anti-fouling coatings to their advanced fleet over many years and knew that HSS would chime with their ambitions to deliver both improved environmental performance and enhanced efficiency and cost control for business stakeholders. HSS is a clear win-win in that respect,” Alberto Genovesi – Marine Global Key Account Manager, Performance Coatings comments.
Jotun believes that if all ships facing biofouling challenges due to different routes and water temperatures adopted the HSS proactive approach – cleaning hulls before biofouling takes hold and therefore eliminating associated drag and fuel consumption – maritime CO2 emissions could be reduced by at least 40 million tons per year.
“We believe HSS will help solve the problem of biofouling, equating to strong benefits for the natural world — through reduced emissions and decreased spread of invasive species – and better results for our business, customers and society. This is the embodiment of what we’re looking to achieve at MSC,” Giuseppe Gargiulo, Head of Newbuildings, MSC Mediterranean Shipping Company, said.
“Clean hulls are only one piece of the jigsaw when it comes to delivering a more sustainable shipping industry, but a central piece nonetheless. MSC is committed to exploring and trialing new scalable solutions to minimize overall environmental impact, for both our business and the shipping industry as a whole.”
HSS has been developed over several years and brought to market by Jotun in cooperation with KONGSBERG.
The solution has been tested on vessels in a multi-year project in partnership with Wallenius Wilhelmsen, Berge Bulk, and Maersk, among others.
Source: MSC picks Jotun’s hull skating robot to keep its containership free from biofouling
International Ocean Rates Continue to Surge. What Options Do US Importers Have?
We want to keep you informed on the latest market updates and news. Read the below brief for updates on international market pricing:
Ocean import rates from Asia base ports to the US west coast increased by 35% between the end of July and the end of August. This pushes the current Shanghai Container Freight Index to an all-time high of $3,639 into the USWC.
The impact of the spot rate surge is especially evident when compared year-over-year where the variance between the current SCFI rate ($3,639) and the same index from this time last year ($1,615) is $2,024.
This variance on its own is over $400 higher the actual 2019 rate, a data anomaly that has been true for each of the last 5 weeks.
One of many underlying concerns for importers right now is how to budget for ocean freight through the end of 2020 and into next year?
While certain routing adjustments have offered limited relief, eShipping is helping customers look at the bigger distribution picture and using its country-wide network of distribution centers, which all operate on the same WMS system, to shorten the length of transit between international vendors and the US based end user.
When done right this approach can lower the total landed cost of a supply chain, and actually improve customer experience by speeding up delivery times in an increasing direct-to-consumer market.
Questions? You can learn more and request a quote online at https://www.eshipping.biz/home/international.