All posts by darrellg@hnmgloballogistics.com

HNM’s CEO appointed to Advisory Committee on Supply Chain Competitiveness

ACSCC appointment letter

ACSCC appointment letter

Please join us in congratulating our CEO, Tony McGee, on his recent appointment to the Advisory Committee on Supply Chain Competitiveness (ACSCC).  The 40-member ASCC was formed to provide the Secretary of Commerce, Penny Pritzker,  with detailed advice on the elements of a comprehensive national freight infrastructure and freight policy to support U.S. supply chain and export competitiveness.  The Committee’s work is intended to further the Administration’s export, economic, and job growth goals.

The Committee advises the Secretary on the necessary elements of a comprehensive, holistic national freight infrastructure, and a national freight policy designed to support U.S. export growth, foster national economic competitiveness, and improve U.S. supply chain competitiveness in the domestic and global economy. Tony was selected from many candidates to represent the Freight Forwarding sector.

Congratulations Tony on your well deserved appointment!

To read Tony’s appointment letter from the Secretary of Commerce please click the following link:  T McGee ACSCC

 

How the new Foreign Trade Regulations (FTR) Export Requirements impact ATA Carnet

 

Starting April 5, 2014, several changes will be implemented to the U.S Census Bureau Foreign Trade Regulations (FTR). Some of these changes involve goods leaving the U.S. under an ATA Carnet.  All exports leaving the United States, except temporary exports, have historically required Electronic Export Information (EEI) filing. However, the types of exemptions that exist today will be greatly curtailed effective April 5, 2014. These changes greatly affect ATA Carnet shipments, as they cover both U.S. issued ATA Carnets and foreign ATA Carnets used for temporary importation into the U.S. Below is a guide to how the new Foreign Trade Regulations (FTR) Export Requirements impact ATA Carnet:

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An Introduction to Freight Classifications

Today’s blog is part of our Freight 101 series — an introduction to freight classifications. Knowing freight classifications will save you time and money. Freight Classifications are used by shippers and carriers to obtain standardized freight pricing. They are established by the Commodity Classification Standards Board (CCSB), which includes three to seven National Motor Freight Traffic Association (NMFTA) members. The NMFTA freight classification scheme is published in the National Motor Freight Classification (NMFC) tariff. It is crucial that shippers determine the correct freight class. Carriers use the NMFC tariff to determine their freight charge. An incorrect freight class = a costly reclassification adjustments.

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Nearly All Shipment Adjustments Can Be Avoided

Any change to the bill of lading may result in a shipment adjustment.

Shipment adjustments are costly, when they aren’t in your favor, but did you know they’re easy to avoid? Yes, that’s right. Nearly all shipment adjustments can be avoided with proper planning and communication. Let’s start with the basics.  Adjustments are up to the freight carrier’s discretion and are applied when the information provided by the shipper does not match the actual shipment details. Most shipping adjustments occur due to variances in shipment size and/or weight. Prior to quoting make sure all of your shipment information is accurate.  For accurate quotes you must provide the dimensions, weight and packaging information. There are other factors that will likely result in a shipping adjustment, such as special handling.  Here are six (6) common adjustments:

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How to dispute Common Carrier re-weighs

Re-weighs occurs when the weight on the BOL does not match the weight on the carrier's scale.

Use the precise weight of the pallet (or other packaging) and not approximations.

We polled our customers to find out what they wanted to read about in our next blog and the number one response was “How to dispute Common Carrier re-weighs.” Freight re-weighs are a common issue. Adjustments to freight charges occur when the information on the Bill of Lading (BOL) does not match the actual shipment. Re-weighs are up to the carrier’s discretion and can happen at any terminal your freight moves through. Most carriers will not intentionally re-weigh the product at an artificial weight as — their reputation and character are on the line. Ninety percent (90 %) of all re weighs are correct, however mistakes do happen.

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Sometimes General Cargo Isn’t An Option

Sometimes General Cargo isn't an option

Sometimes General Cargo isn’t an option

In August of 2012, a requirement came about for the urgent shipment of oil spill recovery equipment to the coast of the Caspian Sea in Aktau, Kazakhstan. Our client needed to gather 12 of their 40 foot barges from sites throughout the continental United States, consolidate them into one central staging area, and send them via air freight to Khazi. They had only two weeks to complete the process. The problem was, how do you get twelve 40 foot barges to a remote location in such a short period of time? Experience has taught us – sometimes general cargo just isn’t an option. Our experienced special project cargo team knew just what to do!

In order to accommodate the client’s needs, HNM Global Logistics coordinated the multi-state collection and consolidation of the barges and chartered an Antonov 124. It was a tight fit, but working with load planners in the initial stage of the project allowed HNM to organize the load in a manner that maximized the Antonov’s massive 330,000 Lb. payload. The barges were consolidated in Newburgh, New York, loaded on board the aircraft and secured for transport. The flight departed Newburgh at 10:00 a.m. local time on Thursday, and after a brief stop in Minsk, Belarus for fueling, landed in Aktau at 10:00 a.m. local time on Friday.

HNM Global Logistics Team gets a tour of the Antanov cockpit

HNM Global Logistics Team gets a tour of the Antanov cockpit

The other concern in meeting the delivery deadline in Kazakhstan was the ability to clear Khazi Customs and deliver to the consignee in a timely manner. Always ready to face a challenge, members of HNM Global’s management team – Matt Johnston and Deborah Dorsett – joined the loading crew on board the Antonov and escorted the cargo to Aktau in order to facilitate the clearance process. Click here to watch the video.

 

THE RESULT.

The cargo arrived on the tarmac in Aktau at 10:00 a.m. Friday, and delivery to the job site was completed by 3:00 p.m. the same day. All parties were happy with the outcome – arriving prior to contract deadline.

 

HOW CAN WE HELP YOU?

Remember – if you have critical needs, don’t go it alone. Let our innovative processes and years of experience make your project a success and your company a leader in on time delivery – no matter where that need is.  Please click here to contact our special project cargo team.

 

Ways to Prevent Cargo Theft

Global Cargo Theft Risk by Country. Source: Freight Watch Int'l

Global Cargo Theft Risk by Country. Source: Freight Watch Int’l

Cargo theft is on the rise and thieves are becoming more sophisticated. Cargo theft can happen at any time to just about any shipment. The National Cargo Security Council (NCSC) estimates that the global financial impact of cargo loss exceeds $50 billion annually. Freight Watch International reports Mexico, Brazil, South Africa, the United States and Russia are the countries most at risk for cargo theft globally.

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Delayed Enforcement of new regulations for ATA Carnet Shipments!

We’re happy to report ATA Carnets departing the United States WILL NOT be required to alter their current practice on/or after April 5, 2014 as was originally reported. The US Census Bureau and Customs Border Patrol have delayed enforcement of new regulations for ATA carnet shipments. The enforcement has been delayed 180 days.

FTR Letter No. 8 Notice of 180 Day Informed Compliance Period for Regulatory Changes states: “During this 180 day period the Census Bureau and CBP will use “informed compliance” to educate the trade on the new requirements. During this time, no penalties will be issued for failure to comply with any new requirements . The period of informed compliance will take place from the revised FTR effective date of April 5, 2014 through October 2, 2014. ”

Historically most ATA Carnets leaving the U.S. have been exempt from the filing of Electronic Export Information (EEI). As a result of changes to the Foreign Trade Regulations, many exemptions that exist today for ATA Carnet will be greatly curtailed. These changes cover both U.S. and foreign ATA Carnets, as well as those coming from and going to Taiwan (TECRO/AIT).

The United States Council for International Business (USCIB) will continue to work with both U.S. Customs and Border Protection and U.S. Census to permanently exclude ATA Carnets from the need to complete an EEI filing through the AES system. To read more on how the New Foreign Trade Regulations Export Requirements Impact ATA Carnet – click here

If you have any questions about the new regulations, please contact us

Ocean Marine Cargo Insurance

Svendborg Maersk

Svendborg Maersk lost more than 500 cargo containers at sea in February 2014 drawing attention to the hazards of container shipping

In recent months there has been much in the news about cargo containers lost at sea. In late February, the Svendborg Maersk lost over 500 containers when it encountered hurricane force winds. This was the largest recorded loss of overboard containers in one incident. It is estimated over 10,000 cargo containers are lost every year. While this number is small in comparison to the mega millions of containers shipped each year, we highly recommend ocean marine cargo insurance to our clients.

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Incoterm Definitions: Part 2

Incoterms: Who Pays What?

Incoterms: Who Pays What?

In our last post we learned the Incoterm definitions for Incoterms used in “any mode of transport”. In today’s post we will cover the Incoterms used for  “sea/inland waterway transport only”.

Let’s take a few minutes to review what we’ve already learned.  Incoterms are a set of rules, published by the International Chamber of Commerce (ICC), that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They are widely used in commercial transactions.

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