by Melanie Prinz, CEO Beeline Logistics
Major trends in a nutshell:
Amazon leased 10,000 branded trailers to haul their own Prime deliveries.
Amazon launched its own freight brokerage service. First in the USA, followed by Europe - Air freight service will come soon.
Lot´s of Logistic startups are founded worldwide, some with great ideas & potential, but most with little or no experience.
Staff in the logistics & industry as well, often are not capable of multitasking, but requirements are increasing daily.
Skills shortage in logistics & industry causes additional costs, loss of quality and delays in production & delivery.
The US trucking industry is facing a growing shortage of qualified drivers for both international and domestic. Around 50,000 driver missing for 2019; Europe has the same problem.
Payment moral goes down more & more with the consequence that some companies - with great potential - go bankrupt waiting for customer payment.
Punitive Tariff - the trade dispute between USA & China
Trade talks between USA & China have stalled.
Import duties for Chinese goods into the US cannot be avoided.
Unless the material that originates in China is somehow altered or finished in a third country (e.g. DR-CAFTA & NAFTA-Agreement) the additional China duty of 25% will apply. Neutralized transportation with trans shipment through other countries will not change the actual origin of the goods.
US customs is very dilligent in checking previous commodity origins, values as well as shipper and consignee records in addition to conducting cargo exams.
Trying to avoid China duty will result in customs fines and for repeat offenders the revoking of import privileges.
Photovoltaic (PV) / Renewable Energies & Water treatments
Environmentally friendly & sustainable is our future.
Delivery terms (e.g. Incoterm FOB, CIF, DAP or DDP) need to be clarified before transportation starts.
Experience shows very often that customer change the Incoterms of a Project while in transit which creates problems.
Each container must be tracked from release of the container in the country of origin until empty return at the destination depot of the Shipping Line at destination, to avoid additional cost (demurrage/detention).
Neutralized transportation on behalf of shippers for transport documents must be clarified - this can save costs for Import duty & taxes.
Customers and logistics provider should work only with project experienced Partners. Without having professional & practical experience in project cargo cost can get very high; in the end shipper will pay twice.
Compliance is not only a problem in 3rd xountries
Compliance rules often will not be taken into consideration by less experience providers. Boycot list by FMC Departement for example must be checked for each transport.
Blacklisted customers, forwarders or logistic companies can´t use US flag Aircraft or US flag Vessels for traffic to and from the US.
Customers, forwarders or logistic companies which work with blacklisted partner/clients global, will face problems importing into the USA. Cargo might go on customs hold for undetermined time or getting rejected for import completely.
Trustful companies, Shipping Lines, Airlines, Logistic Companies etc. have an FMC license for US Imports.
The new silk road
The new silk road logistics will be faster than ocean freight and cheaper than airfreight .
More than 100 Countries involved in this project between Asia, Afrika and Europe.
New Infrastructure/- projects: Rail routes – Ocean Ports – Airports - Highways/Roads – Power Plant - Pipelines.
In 2018 goods worth 199.3 billion euro had been traded as exports and imports between Germany and China.