Category: Blog

New Service Announcement: Exporting Excellence

Export volumes are now approaching pre-pandemic levels so Future Forwarding is excited to announce we have partnered with OOCL for a WEEKLY consolidation box to the UK. Our consolidation box loads every Thursday at our Atlanta warehouse and arrives at Southampton port twenty-three days later, essentially offering thirty days service door-to-door from most of the US to most destinations in England. Our UK consolidations are what Future Forwarding was founded upon and what we do best, so we are happy to promote this service again with full confidence.   

 

Manny Oviedo recently joined our team as Export Manager and we’ve brought on three more new export team members to accommodate our clients, not only our sea freight consolidation but also with bi-weekly air freight consolidations to Manchester airport. Manny has previous airline experience so he is very knowledgeable about air export regulations and service offerings. Future Forwarding is now able to offer lower air freight rates than ever before to our clients, as well as more flight options, thanks to Manny’s airline connections.  

 

Additional new team members are Jack Lloyd, Air Export Specialist; Tracey Parker, Ocean Export Specialist, and Michael Rowe, Ocean Pricing Coordinator. These four new staff members bring with them over fifty years of experience to the export team, in addition to Pat, Pam, Marisa, and Shannon who you have been working with over the last few months. It’s very exciting to have a fresh new focus on exports and we are really looking forward to overseeing our new “dream team” exponentially growing our export department. We are anticipating around 300% volume and revenue growth for this department this year, and I know our clients are really going to enjoy working with our new team to make that happen. This team’s expertise and knowledge is what is going to drive our success!

 

Get in touch with us today to see what our Export Team can do for you. 

The Future of Carbon Neutral Shipping

As the world’s carbon emissions continue to increase, businesses are making efforts to reduce their carbon footprint. One way they can do this is by opting for carbon-neutral shipping. Despite its potential environmental benefits, many businesses are still hesitant to make the switch due to added costs and complexities involved in carbon-neutral shipping.

 

Recent research conducted by Boston Consulting Group (BCG) has shown that customers are willing to pay more for carbon-neutral shipping options. In fact, 71% of respondents said they would be willing to pay a premium for these services. On average, respondents were willing to pay up to eight percent more. Although carbon-neutral shipping can be more costly than traditional shipping methods, it can also help businesses save money in the long run. By offsetting carbon emissions, businesses can avoid costly carbon taxes.

 

The carbon-neutral shipping concept works by offsetting carbon emissions generated by the transportation of goods and products. This is achieved through investment in carbon reduction projects such as planting trees, investing in renewable energy, or carbon capture and storage technologies. The cost of carbon offsets varies depending on the type of project being invested in, but can be an attractive option for businesses looking to reduce their carbon footprint.

 

In addition to the carbon offset costs, carbon-neutral shipping also involves additional costs such as special packaging or extra fees for carbon neutral transportation. However, the BCG study shows that customers are willing to pay, which means businesses can make carbon-neutral shipping economically viable by charging a premium for such services – and that businesses may be rewarded with increased customer loyalty and brand recognition as a result.

 

Future Forwarding is always looking to the future, both for innovation and how to best support our employees and clients. Here, we step boldly into the future with tradition as a solid home base and innovation driving us forward. Our industry is ever-evolving and you need a trusted partner that can guide you through the trends. Reach out to us today to see what a brighter future looks like with Future Forwarding on your side.

Changing Trade Volume at the Port of Savannah

While October was the Port of Savannah’s second busiest month on record, moving 552,800 TEUs, in November that number fell to 464,883 TEUs, 30,866 less than November 2021. Yet, even with that decline, the Georgia Ports Authority (GPA) is reporting that their rate of growth has skyrocketed from an annual rate of 5% to a whopping 28%. 

Georgia Ports Authority Executive Director Griff Lynch recently said, “Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry, along with the addition of more than 1 million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at Garden City Terminal in July.”

The slowdown can be attributed to inflation, changes in consumer spending, as well as weather issues from Tropical Storm Nicole keeping big ships from the Savannah River Channel. 

However, this lull wasn’t unexpected, according to GPA Chairman Joel Wooten. He said, “While we are planning for a moderation in the container trade, we expect volumes to remain strong, though shy of the historic highs of the past year. Announcements from automakers and other manufacturers coming to Georgia, as well as an array of their suppliers, will mean healthy increases in trade over the long term.”

 

Experts predict that volumes in 2023 will not be as robust, but still “healthy”. 

 

The decline in volume has also allowed the port to process more vessels and the GPA says they expect to clear their entire backlog of ships by January. 

 

As a full-service logistics provider, you can trust that Future Forwarding has its eye on the ebb and flow of supply chain dynamics and our trusted team of experts is always analyzing how to best make it work for you. Get in touch with us today to discuss how we can help you achieve your goals, whether it be e-Commerce warehousing and fulfillment, freight forwarding, Customs brokerage, compliance, or domestic transportation, we’ll keep you moving. 

Modernization Means Automation: Forwarding the Future

One of the jobs with the highest turnover rates in logistics is truck unloading. One way to meet this need is automation and Pickle Robot Company is stepping into the limelight.  Omar Asali, Chairman and CEO of Ranpak, and Pickle Board Member says, “Unloading freight from trucks and containers is a difficult, sometimes dangerous, and always tedious task that is performed in thousands of locations every day. “Operators around the globe are having difficulty filling positions to do this type of work, and Pickle is delivering a real robotic unload system that can help fill the labor gap plaguing the logistics industry.”

 

However, the industry is finding that automation is also drawing new types of employees, those who are interested in working with these automated processes and machinery. They’re tech savvy and driven, excited about the human-robotics workflow and how that leads to greater efficiency. 

 

Modernization does mean some kinds of jobs will be eliminated, but experts think that this isn’t a bad thing and is no cause for worker distress. They say that it’s simply changing the nature of what employees are being asked to do. Their positions will evolve to more problem-solving and mental engagement as opposed to manual labor and should become more rewarding. 

 

These types of changes will also be a draw for recent graduates in technology and this will lead to fresh takes on old challenges and could be transformative in a positive way for the logistics industry as a whole. 

 

Future Forwarding is just that: future forward. We’ve got a solid foundation on which to build, and the expertise to know how to plant the seeds for organic evolution to keep growing our business to stay ahead of the trends and keep providing that first class service to our clients. If you want to experience the future of cargo today, reach out to us and let us show you how.

The Importance of Supply Chain Mapping

With an increasing emphasis being placed by CBP on importers to know the source of every component and raw material in their supply chain, the agency now recommends that importers map their supply chain down to the fifth supplier level of raw materials to ensure that the product is free of forced labor. Beginning with the Customs Modernization Act in the mid-1990’s and now with a final rule published by CBP governing broker responsibilities in 19 CFR Part 111 and as part of their wider mission to update their regulations for today’s trade, there is a reinforcement and reiteration to importers – know where your goods are coming from.

 

According to the Global Slavery Index, the United States imports approximately $144 billion dollars worth of goods made with forced labor. These goods are, in fact, prohibited by Section 307 of the US Tariff Act and any goods that are reasonably suspected of being produced in such a way could be subject to a Withhold Release Order (WRO). A Withhold Release Order means that the goods will not be released for entry into the United States, and the goods could be subject to seizure and the IoR subject to steep fines. 

 

It’s important to understand the definition of forced labor for these purposes. From the US Tariff Act: “All work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.” Menace could be anything from verbal threats, to withholding pay, deception, retention of identity documents, debt bondage, and even excessive overtime to more insidious acts like physical violence. 

 

If we all do our part, we can keep ethically produced goods moving while eliminating the demand for forced labor supply. 

 

Some suggested resources to help with supply chain mapping and compliance from the Department of Homeland Security (DHS) are as follows:

 

The U.S. Department of Labor’s Comply Chain

 

The U.S. Department of State’s Responsible Sourcing Tool

 

National Action Plan on Responsible Business Conduct

 

CBP’s forced labor website resources

 

CBP’s Withhold Release Orders and Findings

The appearance of forced labor for raw materials extends beyond Xingang and its cotton and photovoltaic cell industries. CBP has WRO actions in place for products from around the world. The requirement of importers to comply or risk denial of entry means that is extremely important that, working with our clients, Future Forwarding keeps the goods in your supply chain moving from raw material to final delivery to the customer, whether business or individual.

Future Forwarding Celebrating 45 Years

Future Forwarding rang in a landmark birthday by doing what we’ve always done, what we’re known for, delivering excellent service to our customers.

 

Future Forwarding was born in Leeds, England on a cold day in 1977. Our founders purchased a secondhand typewriter from a thrift store to create airbills for our very first client and their shipment from Switzerland. Unsurprisingly, that very first client is still with us today.

 

Longevity is something a lot of companies talk about but there’s proof of that in our client base, and in our employee roster. We opened our first office in the US twenty one years ago, and there are employees who were there day one and are still there. In our UK offices, there are employees who’ve been with the company thirty years or more. 

 

That’s a testament to the kind of company culture you’ll find at Future Forwarding. Logistics is ultimately about people and relationships, and that’s the focus within the organization. President Colin Smith says, “Our core values are focused on a customer and employee-first model. We want to make the customer and employee experiences enjoyable. We’re building relationships.” 

 

In the early years of our US presence, there was a strong connection between the north of England and the southern US based on textiles, from machinery, to yarn, and other raw materials. We started with an office with four people and 1800 square feet and in the last nineteen years, have expanded to over 800,000 square feet. 

 

Future Forwarding has done a lot. From flying soccer balls to England’s team playing in Spain, to rackets to John McEnroe in New York, we’ve always been about service going hand in hand with innovation. 

 

Now, as we look to the future and the next forty-five years, we’re spreading our wings even farther with organic growth into new, strategic markets, all while continuing to polish our current foundations of service and strong interpersonal relationships. 

 

Happy Forty-Five, to all those who make us Future Forwarding!

Felixstowe: Ships Surge Post Strike

The Felixstowe scheduled strikes came and went, and the eight days of inactivity at the port has resulted in a pileup that’s going to take a while to process. Where the average number of days that container ships were awaiting berth was 5.2 days, that number shot up to 9.4 days as of August 26th – an 82% surge according to FourKites. 

 

Felixstowe handles 48% of the UK’s container traffic, which is approximately 4 million containers a year. Currently suffering from delays, the ocean container movements are experiencing inaccurate and uncertain transit times that may carry well into 2023. Further disruption from these strikes may become widespread to the global supply chain. 

 

The major dispute between the union and the Felixstowe Dock and Railway Company, which is owned by Hutchison Port Holdings, was over the increase in workers’ pay by 5%, later revised to 7% and a one time payment of 500 pounds. The Unite trade union demanded a 10% raise for its members to counteract inflation, becoming the highest requested rate for forty years. 

 

This bitter exchange between the union and Hutchison Port Holdings has had both criticizing the other severely. The port said the union was making “massive exaggerations, misrepresentations, or just out and out falsehoods” when regarding what the port could and could not do. 

 

The Unite General Secretary Sharon Graham said the port had been “prioritizing profits over workers and siphoning off tens of millions of pounds off shore every year” according to Automotive Logistics. And that the company had paid out 198 million pounds in dividends since 2017, with the main holding company to be CK Hutchison Holdings, in Hong Kong. 

 

Graham stated, “So, Hong Kong shareholders are getting a bonanza pay-out while the company weeps ‘crocodile tears’ claiming that they can’t pay a decent pay rise here and essentially asking workers to accept a pay cut.”

 

While it’s uncertain how things are going to play out in Felixstowe, don’t let yourself be uncertain as to where your cargo is headed. With Future Forwarding on the job, we’ll keep you up to date with tracking and make sure you know the instant a change in plan is made due to any disrupting events. If you have any questions, please don’t hesitate to contact your Future Forwarding representative today. 

 

Future Forwarding Partnering for Online Invoice Payments

The trend by consumers to move to more electronic forms of payment and eliminate traditional payment methods which took off during the pandemic is only accelerating. Understandably business to business payments require a more robust solution than tapping phones or snapping QR codes to send a few dollars to your favorite comedian or musician. 

 

Future Forwarding uses industry-leading software provider CargoWise for our operational technology and our IT group, working in tandem with our financial partner Regions Bank, developed a system to make it quicker, easier and more secure to pay our invoices.

 

Here’s how it works:

 

On regular intervals, CargoWise and Regions communicate securely with one another, providing an updated ledger of outstanding invoices. The underlying platform can be logged into here or bookmark this URL in your favorites: https://regions.billeriq.com/ebpp/FutureFwding/Login/Index

 

You’ll get a login screen that looks like this: 

 

You can either set up your own account or Future Forwarding would be happy to do so on your behalf. To set up your own login ID you will need to match your Client ID (located in the upper right-hand corner of the invoice) and billing zip code.

 

Once logged in, you’ll be able to perform a variety of accounting functions, including:

  • View and download invoices
  • View history of payments
  • Pay an invoice (or invoices)

 

Future developments for the platform include setting up automatic payments in the future, but for now users can quickly and easily log in, review their account and make payments. It is faster and more secure than sending paper checks and supports financial audit trails.

For more information including learning more, scheduling a demonstration or setting up your portal account, email receivables@usffcl.com.

Insights into OSRA

When the Ocean Shipping Reform Act (OSRA) was signed into law on June 16, 2022, it not only became a beacon that provided guidance for companies who felt they were being unfairly charged demurrage and detention (D&D) fees by carriers, it opened the door for cargo owners to have a more vocal advocate to fight those unfair charges imposed by carriers. 

 

According to the White House Briefing Room, OSRA authorizes the Federal Maritime Commission (FMC) for fiscal years 2022-2025, creates a list of necessary and banned behavior for ocean carriers, requires the FMC to create rules related to certain fee assessments, creates a shipping register, and gives permission for the FMC to issue emergency order necessary common carriers to exchange information directly with shippers, rail, and truck carriers. 

 

OSRA has declared carriers won’t be able to be as cavalier or as easily dismissive of claims made by small and medium sized companies whose survival depends on getting a spot on these shipments for a reasonable price.

 

The FMC will help force carriers to be more honest in their accounting and will perhaps be an incentive to change their behavior towards shippers. Creating equality across the board whether they are a large company or small could mean an economic boost for smaller companies, and make it so that they have a chance to grow. The FMC announced that these complaints, however, must be made after the ruling on June 16, 2022, and not before it was made into law. 

 

Future Forwarding has always advocated for our clients and when we act as a freight forwarder or NVOCC, we keep the most accurate accounting of a container’s location, time out of the port or ramp, and whether or not there were issues which prevented the equipment’s return. Future Forwarding will stand with you to fight against these excessive fees. Should you have any questions regarding this or how we can help you in the future, please don’t hesitate to contact your Future Forwarding representative today. 

Dockworkers on Strike in Germany

In the wake of a breakdown in negotiations between employers and the union,  12,000 dockworkers in the German ports of Bremerhaven,  Wilhelmshaven, and Hamburg have gone on strike. 

 

The workers’ demand is for a 14% increase including bonuses to offset inflation concerns and the offer for consideration from employers is a 12.5% increase to current pay, but over a two year span. Maya Schwiegershausen-Güth, ver.di’s chief negotiator, says they’re still ready to find a negotiated settlement, but not without a “real wage increase” for its members. She also said, “…against the background of the uncertain economic development the current offer was still insufficient.”

 

The Loadstar reports: “ The third ‘warning strike’ is the longest so far and will further aggravate port congestion at Hamburg’s container terminals where yard density already stands at an unproductive level of 90%. Moreover, ships idled in the German bight are stacking up with berthing delays, even before the stoppage, extending to up to 14 days.”

 

ZDS’s chief negotiator Ulrike Riedel rebutted that the action can no longer be called a warning strike. She went on to say that the strike has “damaged the international reputation and competitiveness of our ports and endangers the existence of many companies.” Although, one could argue it’s not the dockworkers’ responsibility to keep companies afloat. That responsibility rests solely on the shoulders of company leadership. 

Carrier Maersk says they have “decided to observe a full stoppage for rail, road and ocean freight for both import and export across our German terminals for the duration of the planned strike.”

Some carriers may be able to transload cargo from other ports, but congestion is already an issue at most alternative ports as well. 

Head of Kiel Trade Indicator Vincent Stamer says, “There is currently no end in sight to the congestion in container shipping. This is very unusual for the North Sea, while long queues off Shanghai have also been observed in the past, for example.”

 

Even after a settlement is reached, it’s going to take some time to untangle this supply chain snarl, especially with the already stifling port congestion as a contributing factor.

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