Industry Insights
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. …
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. …
The global insolvency of Hanjin Shipping Co. Ltd. had a tremendous impact on cargo owners, including losses involving the need to move cargo from one carrier to another; making arrangements for additional transportation modes; and taking measures to minimize losses resulting in additional storage fees, charges and fines; among other claims. Hanjin, the largest shipping company in South Korea and the world’s ninth-largest shipping company, operated about 60 regular lines worldwide. …
The rise of e-commerce is helping to meet the demand of businesses and consumers for faster delivery times of goods and causing logistics service providers to look at their businesses differently including their use of different transportation modes. An article recently published by JLL on logistic trends points out that while mega ships (the largest ships are now 22,000 TEUs) are dominant in transoceanic delivery they are not conducive to the speed-to-market demands of today’s e-commerce groups. …
Beginning April 1, 2017, liner-wide consolidation has entered its third generation with three new alliances: the Ocean Alliance, THE Alliance, and 2M Alliance. The first vessel-sharing consolidation of ocean carrier vessels took place back in the 1980s and 1990s and then again in 2011. The goal of these alliances is for carriers to pool their resources together to address overcapacity and underutilization of their vessels and save money. …
The May 31st renewal deadline for the new Federal Maritime Commission (FMC) Ocean Transportation Intermediary licensing program is fast approaching. As you probably know, on November 4, 2015, the FMC issued a Final Rule involving various aspects of its regulations affecting Ocean Transportation Intermediaries (OTIs). As a result, OTIs are now required to renew their license every three (3) years. …
There are several disruptive areas set to impact the future of the logistics industry, according to a report released by consulting company PwC called Shifting Patterns: The Future of the Logistics Industry. Evolving customer expectations, technology breakthroughs, new entrants into the industry, and new ways to compete and collaborate are reshaping the industry. Following is an overview of what’s happening, according to the report, as well as what’s to come:
Changing Customer Expectations: Individuals and businesses are demanding that goods be delivered faster and at lower costs while also expecting greater flexibility. …
As a leading provider of insurance solutions for freight forwards, customs brokers and other logistics service providers, one of the key components in helping our clients mitigate and prevent losses is through the implementation of strong risk management strategies, practices, and tools. To this end, Roanoke Trade has developed a complimentary Risk Management Webinar Series for 2017 to help clients enhance their awareness of potential risks in day-to-day operations and provide solutions to help manage these risks. …
