Industry Insights

Logistics service providers and transportation intermediaries in order to run well-oiled operations should possess the risk management tools needed to help minimize losses and transfer risk. There are a number of components required in having a strong risk management toolbox that will go the distance for optimum success.  

These risk management toolbox components include well-drafted contracts with favorable terms and conditions and clearly stated responsibilities and obligations of each party along with FMCSA compliance. …

Senator and once-Presidential candidate John McCain has introduced the Open America’s Waters Act of 2017, which would repeal the Merchant Marine Act of 1920, known as the Jones Act. The Jones Act requires that all goods shipped between ports in the United States be transported on American-built ships that are owned and operated by Americans. Nearly 100 years ago, it was intended to strengthen national security and commerce. …

Doing business across oceans and borders while very rewarding today is more challenging than ever, particularly in light of the government’s renewed emphasis on enforcing U.S. trade regulations over imports and exports. The new administration, for example, issued executive orders stepping up the collection of antidumping and countervailing duties and the prosecution of trade and custom law violations. Federal agencies have also issued regulations further strengthening the need for product and food safety and intellectual property compliance. …

In May, the WannaCry global ransomware attack targeted computers worldwide running Microsoft’s Window operating system by encrypting data and demanding ransom payments. WannaCry brought computer systems from Russia to China to the U.K. and the U.S. to their knees, locking people out of their data and demanding they pay a ransom or lose everything. More than 200,000 computers in 150 countries were affected. …

Purchasing the right policies to protect your business, whether you are a transportation company or logistics service provider, is critical in ensuring that your exposures are adequately addressed in the event of a loss. There is a great deal that goes into securing the right insurance, including having proper property and liability limits for each of your policies. This is where working with an experienced transportation insurance firm such Roanoke Trade comes in. …

Supply chain consulting firm Armstrong & Associates released its report, “Trends in 3PL/Customer Relationships – 2017,” indicating that 90% of domestic Fortune 500 companies rely on third-party logistics providers (3PL) for outsourced logistics and supply chain services. Armstrong & Associates has been tracking these 3PL-customer relationships for more than a decade. The report findings are based on analysis of more than 7,200 current 3PL customer-relationships in 41 countries—representing nearly 20,000 services. …

As part of our ongoing efforts to provide the tools and resources you need to successfully manage a compliant Customs Bond Program, we offer the following answers to your most frequently asked questions.

The following information reveals some of the most common reasons why eBonds are rejected by CBP and solutions on how these issues can be resolved.

	PRINC ID NUM NOT IN ACE or PRINC ID NUM NOT ACTIVE IN ACE (The principal does not have a valid CBP5106 on file in ACE)
	Customs brokers may file an electronic CBP5106 via ACE for domestic principals; CBP requires a paper CBP form 5106 be filed for all foreign principals.

Although the peak holiday season is still months away, shippers and logistics service providers should heed the lessons of past missteps in order to ensure that the upcoming season is a happy one for their customers. It’s this very time period – the day after Thanksgiving to December 23 – that many retailers earn the majority of their annual revenue so the stakes are high for everyone involved in the supply chain. …

In its annual Global Resilience Index, insurer FM Global revealed that cyber attacks, natural hazards and supply chain failure are among the top risks that businesses face around the world. The annual index, which is online and available for free, ranks 130 countries and territories by their enterprise resilience to disruptive events. It provides a unique resource to help business executives investigate 12 quantified resilience drivers related to each country’s economic strength, risk quality and supply chain condition. …

Shippers often mistake declared value coverage with Cargo insurance, but in fact they are quite different. It is important to understand these differences and how claims are paid under each type of policy. Following is a brief overview of how these policies work.

The practice of declaring a value for carriage occurs when a shipper wants the option to pursue a recovery amount that exceeds the carriers stated limits should a loss occur. …