Logistics Industry Archives - Excelsior Worldwide Logistics Corp.

How to Build Healthy Relationships with Customs Officials and Why It Matters?

excelsior on October 23, 2024

The ever-changing international freight forwarding market has become more significant, as it is expected to expand to $18.69 billion by the year 2026. While logistics has become an integral part of the world economy, the processes have also become more intricate in ensuring that shippers and customs brokers follow the regulations imposed.

Navigating complex operations, particularly in international shipping, requires extensive regulatory compliance and clearance processes to allow businesses, importers, and exporters to ship their goods successfully. This is why maintaining healthy and strong relationships and business partnerships with customs officials matters.

Establishing connections is a good strategy not to dodge the bullet in strict regulations but to create a streamlined process, faster transactions, and prevent miscommunication.

Here are some practical tips and strategies on how to build a positive and healthy relationship with customs officials:

Adhere to the Rules and Regulations

One of the most crucial steps in building healthy relationships with stakeholders and customs is understanding the enforcement regulations in shipping.

A shipper must be knowledgeable about the requirements, such as licenses, certificates, permits, and other documents that need to be presented before shipping. It is also essential to be well aware of the potential consequences and risks that might be acquired due to compliance failure.

Being informed of the rules and regulations in logistics reflects how professional and respectfula shipper is to the logistics industry officials. Being aware of the rules to follow also creates open communication with the customs officers, which prevents risks and violations.

Establish Proper Communication

The second step to maintaining a relationship with customs officials is to communicate clearly to ensure that trust, collaboration, and transparency will be created. This implies that it is vital to provide the correct information and data related to shipment to keep the customs well-advised.

For instance, your goods’ shipping details need to be changed. Hence, the first thing to do is inform the officials of those changes so they are aware and can provide assistance. This could also prevent misunderstandings and possible conflicts with the customs administrations when shipping your goods.

Stay Proactive

The next step in creating a good relationship with customs officials is to be proactive. Whenever you are planning to engage with a logistics company in the Philippines, it is important to anticipate potential disruptions, conflicts, and risks that may emerge.

Moreover, a business shall be prepared on how to deal with and adapt to such circumstances. Being proactive in engaging with logistics reflects a business’s responsibility and innovation in handling potential concerns.

Ask For Feedback and Recommendations

Securing connections with customs officials can be achieved by seeking their advice and feedback. This enables a business to enhance its performance and efficiency in handling shipments.

As customs officials have expertise in logistics, their opinions and recommendations matter in addressing concerns and potential disputes that might occur.

Seeking help and assistance from customs also restates a business’ dedication and willingness to achieve a conflict-free logistic process.

Apply What You Learn From the Customs

Lastly, one strategy to validate the customs officials’ effort in your logistic clearance and documentation is to apply what you have learned. This means that a business shall integrate its advice, such as using the best practices to improve its logistics process.

In return, it is fundamental to express recognition of their contributions to allow your business to be seamlessly processed.

Establishing contacts with customs can also strengthen a business’ competency, loyalty, and partnership with the officials.

How to Build Healthy Relationships with Customs Officials and Why It Matters? Cover Image 99845

Conclusion

As the logistics industry continues to evolve, having a good connection with customs officials matters a lot. It cannot only help a business ensure faster shipment processes and transactions but also allow the gaining of essential insights, advice, and tips to enhance a business’s shipment performance.

Fostering collaboration with customs officials may be an advantage for shippers and businesses, but it is critical to remember that maintaining this professional relationship is what matters most.

If you are too busy to deal with customs officials but need help keeping transaction records and documenting your freight forwarding process, a licensed customs broker from Excelsior can help. Excelsior is a logistics corporation that offers reliable shipping services worldwide. It can help clients track their shipments and ensure their safe arrival at their destination.

Read more:

Container Congestion in Singapore: How It Affects Worldwide Logistics?

excelsior on July 30, 2024

Port congestion is considered the most compelling issue in the shipping industry today. It is a situation where ships experience backlogs while waiting to load or unload cargo due to overbooked capacity ports, leading container ships to berth instead.

This logistic concern has led to numerous concerns regarding supply chains, higher shipping costs, and major shipment delays.

In fact, Singapore, known as the world’s largest transshipment hub and the second-busiest port in 2023, is also exposed to and affected by container congestion, which disrupt operations and lead to lengthier transit times.

According to Chee Hong Tat, Singapore’s transport minister, the issue concerning Singapore port congestion has gotten worse as 90 percent of the container ships arrive off-schedule.

This Singapore congestion has been aggravated by the Red Sea Crisis, which prolonged the rerouting of vessels and ocean carriers between Asia and Europe and damaged global ocean shipping.

With this concern affecting not only Singapore but also worldwide logistics, various factors have been added to the list, which has generated huge impacts on the shipping industry and consumers.

Sources of Port Congestion

Weather Conditions

Severe weather conditions, like storms and rough seas, hinder the normal operations of shipping services. Given that cargoes and goods are transported out of the channel by sea, massive delays are possible, which could knock ports and customers off their feet.

Labor and Manpower Disputes

Port workers, such as truck drivers, dockworkers, port operators, and other staff members, are responsible for packing, unloading, document checking, cargo clearing, and cargo moving. Strikes, disputes, stoppages, and other job working conditions could limit and drastically slow down these services.

Poor Infrastructure and Equipment

Container congestion is largely caused when ports lack cargo handling equipment like chassis, and there is insufficient storage, container yards, and berths. Due to infrastructure deficiencies, major backlogs lead to the piling up of cargo and containers, which could lead to delays.

Demand Surges

The influx of imports and exports from the e-commerce market and platforms has become prevalent during the pandemic and continues to the present. The demand surges swamped the port’s capacity, causing service disruptions and container shipping traffic due to the large amounts of goods that needed to be transported.

Impacts of Singapore Congestion on Worldwide Logistics

Container Congestion in Singapore: How It Affects Worldwide Logistics?
Infographic Image 0000008

Major Delays

As shipping operations have been halted due to container congestion, a domino effect could spread throughout logistics. A supply chain crisis could emerge and cause longer transit periods, backlogs, and delays in shipping schedules, which will directly impact the consignees and consumers.

Generates Extra Costs

When a ship stays longer in port, the higher the costs and the driving of inflation. Singapore container congestion will not just cause significant delays in deliveries; this will generate extra fees for the consumer due to increased billing for port services and fuel usage. Higher freight rates for shipping companies are also possible; hence, this could lead to congestion surcharges.

Lost Revenue for Businesses

A small delay could lead to a huge disturbance. Congestion could also impact small businesses, causing them to lose revenue and income due to inventory delays, production discontinuance, and missed sales due to customer unsatisfied remarks.

How to Deal With Singapore Port Congestion?

It is essential to illuminate potential solutions that could be applied to avoid Singapore port congestion and future delays.

Thorough Planning

Through intensive and streamlined planning, delays, shipping methods, production schedules, and supply chain operations would be seamlessly solved and anticipated, lessening the impact of congestion.

Enhancing Port Infrastructures

As the shipping industry becomes increasingly relevant, meeting the demands also means expanding and enhancing the needed infrastructure. Having a larger capacity of ports and sufficient containers, berths, and storage will limit congestion.

Diversifying Routes and Logistics Network

Optimizing routes and searching for alternative gateways with larger capacity and low congestion levels are necessary. Finding alternative transportation should also be considered to ensure prompt delivery and freight assistance. In this case, it is also essential to look for a freight forwarder with a vast logistics network to handle delays and shipping issues professionally.

Conclusion

Although PSA Singapore claims to deal with shipping lines and freight services to minimize container congestion, it is still necessary to be aware of how the shipping industry affects global logistics and how it should adapt amidst the rising issue of port congestion.

Learn more by reading these articles:

What is Breakbulk Shipping? Everything You Need to Know

excelsior on July 22, 2024

Many shippers are knowledgeable in traditional cargo transportation methods, such as container shipping and international freight forwarding. However, instances where cargo exceeds the container’s capacity or weight limit can make it more challenging to transfer goods to their destinations.

Breakbulk shipping serves as a practical solution to this dilemma. Understanding how breakbulk shipping works is fundamental to efficiently hauling oversized cargo and ensuring timely delivery.

What is Breakbulk Shipping?

Breakbulk shipping refers to a type of cargo transportation that includes handling and shipping large, heavy, and non-containerized items, including:

Barrels
Metal drums
Machinery
Vehicles
Crates
Boxes
Building materials

Unlike container shipping, breakbulk offers tailored handling and secure transport for oversized or irregularly shaped goods to fit into standard ISO (International Organization for Standardization) shipping containers.

Moreover, since breakbulk shipments are not containerized, they do not always necessitate a dock crane for unloading. This gives entities access to various port options, such as Roll-On/Roll-Off and Lift-on/Lift-off services.

Advantages and Disadvantages of Breakbulk Shipping

While breakbulk shipping is an excellent option to transport cargo efficiently, it has its set of advantages and disadvantages. These include:

Pros

Breakbulk shipping strengthens the security of goods with dedicated handling and stowage methods. This can be especially crucial for promotional products, which often need special care to prevent damage or breakage.
Due to its customized approach, breakbulk offers faster transport times. Container shipping often makes multiple stops at different ports for cargo goods to be loaded or unloaded, whereas breakbulk can proceed more directly. This prompt technique is helpful for urgent or time-sensitive shipments, allowing businesses to effectively meet critical project deadlines or customer demands.
Breakbulk shipping does not require cargo to be segregated individually. Rather, bulky or heavy items are loaded using specialized machinery. This streamlines the handling of large cargoes, making them easier to haul.

Cons

Project cargo is often highly valuable and, therefore, risky to transport. If this cargo gets impaired, it can be costly to repair or replace. Fortunately, many modern methods allow complete enclosure of more oversized items, thereby ensuring they remain secure from damage during transportation.
Unlike standard-size shipping vessels, break bulk and multi-purpose vessels are not always available on specific schedules. This can complicate the process of finding the appropriate carrier at the right time and location needed.

Preparing for Breakbulk Shipping

Preparing for break bulk shipping is imperative for successfully handling bulk cargo. This preparation reduces risks, lowers transportation costs, and ensures on-time delivery, making breakbulk shipping a dependable option for specialty deliveries.

The following discusses key steps to effectively arrange breakbulk shipping:

Determine the Type of Break Bulk Cargo – Understand the equipment or material needed to be transported.
Choose Appropriate Break Bulk Packing – Different break bulk cargo necessitate varying packing methods. For example, packed cargoes are typically shipped in bags, boxes, or cartons. On the other hand, unpacked cargoes are either not packed or cannot be packed due to their nature.
Select the Right Handling Equipment – Use suitable equipment, such as cranes, forklifts, and conveyor systems, to efficiently load and unload breakbulk cargo.
Choose a Breakbulk Fleet – This is crucial as it carries and handles cargo across seas to its destination port. These vessels differ in size, capacity, and specialization. Many outdated vessels have been replaced by modern alternatives that are equipped to manage diverse cargo needs efficiently.
Determine the Break-of-bulk Point – Identify the break-of-bulk point to establish where cargo shifts between transportation modes to ensure smooth logistical transitions.

Leverage Reliable Breakbulk Shipping Solutions

Efficient transportation of goods is critical for businesses, particularly when meeting the demands of supply chain resilience. Breakbulk shipping plays a fundamental role in the global logistics ecosystem because it provides a secure and effective method for transporting large commodities. For businesses seeking breakbulk shipping solutions, Excelsior Worldwide Freight Logistics Corporation is a logistics company in the Philippines that offers reliable breakbulk services to accommodate oversized cargo. We are also committed to providing clients with time-conscious, client-oriented, and exceptional delivery service. Visit our website https://excelsior.ph/ for more information.

What is Breakbulk Shipping? Everything You Need to Know! Infographic Image 0005

How Currency Exchange Affects Freight Forwarding Costs

excelsior on March 15, 2023

Global trading has significantly grown in the past decade as more and more businesses and individuals rely on imports and exports to make money. Experts forecast that international trade will hit more than $32 trillion in 2022 as countless products from different industries are shipped across borders daily.

And along with the positive development in global commerce is also the rise of the international forwarding industry. Numerous enterprises are now partnering with international freight forwarding companies to effortlessly transports their shipments to their destination. In addition, a freight forwarder can help companies tackle various factors that affect the shipping process, including the constant currency exchange rate fluctuation.

What is Currency Exchange?

In its simplest form, the currency exchange rate refers to how much each currency is needed to be exchanged with one another. The US Dollars has always been the standard for currency exchange rates and holds the most daily shares with more than 88%. Currency rates are always considered floating as various factors affect them daily, including economic activity, GDP, and the supply and demand for different products.

The continuous fluctuation of currency rates across the globe can result in shipping surcharges for companies. This makes freight forwarding invoices complicated for organizations to handle. Currency exchange rates affect various factors in how freight costs are calculated, and companies must know how to manage them to avoid massive financial losses in the long run.

Impact on Freight Forwarding Costs

The primary currency used for freight costs is US dollars, and its value against other currencies can affect the overall shipping prices. Various things contribute to the total freight costs, and currency rates significantly affect whether the amount will increase or decrease.

Varying Currency Exchange Rate

The exchange rate in every nation is different, which can significantly impact freight costs. The amount needed to transport goods to one country differs considerably in other nations. Exports to a nation with a weaker currency than the US dollar are a little more expensive. This means that you need to adjust your budget.

Tariffs

For decades, imports have been subject to taxes even before arriving at the destination port. Authorities do this to generate income and protect local producers, as imported items must be sold at a higher price. A specific percentage of the total value of the shipment usually calculates the tax to be paid. Stronger currency rates between the two nations decrease the overall cost of the freight and offset any increase in the tariff rate.

Transaction Fees

Apart from tariffs, many exporters also pay different transaction fees based on how the shipment is delivered. The amount may fluctuate based on the currency value of where the importer or exporter is paying. Financial institutions implement foreign currency conversion and transaction fees, which a shift in the exchange rate can significantly impact.

Conclusion

As global trade continues to expand, it is vital that businesses that rely on shipping understand the various factors that affect forwarding costs. One of which is the exchange rate, which significantly affects the overall shipping expenditures. Currency exchange rates adjust daily, and it can be tedious for importers and exporters to handle them. But partnering with a reputable logistics company can help them efficiently plan the needed amount for every freight.

Excelsior Philippines, the country’s top freight forwarding and customs brokerage company, has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. We can also help you negotiate freight charges for the best shipment value. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.

How China’s Latest COVID-19 Outbreak Affected the Global Supply Chain

excelsior on February 13, 2023

The COVID-19 pandemic has crippled various industries worldwide. This led to many companies scrambling to keep their business afloat amid uncertain times. Contactless transactions have become the norm, and the adoption of modern solutions has significantly increased as organizations pivot to remote work and digital commerce.

And one sector heavily impacted by the global health crisis is the international freight forwarding industry. Strict lockdowns have led to international freight forwarding companies suffering losses due to a decrease in manufacturing and massive congestion in major ports worldwide.

It’s been more than two years since the first wave of the pandemic hit the globe, and freight forwarder international firms have slowly recovered since then. But a recent COVID-19 outbreak in China has brought new uncertainties in the global supply chain, with the sudden increase in cases causing worker shortages in ports and important factories across the country.

The Latest COVID-19 Outbreak in China

After easing their harsh zero-COVID policies amid the wide protests in big cities, China has faced what many experts consider the worst COVID-19 wave recorded. Authorities in the country estimated that almost 250 million individuals contracted the virus during the first 20 days of December 2022, making it the fastest rise of COVID patients in the nation since 2020.

This unprecedented situation has led to businesses needing to close down again, as most of the workforce is infected or exposed to an infected individual. Reports also said that medical establishments are overwhelmed by the situation, most of which are struggling to cope with the sudden spike in COVID cases right after the government became lenient with their COVID prevention policies.

Effects on the Global Supply Chain

As home to some of the biggest ports around the world, there is no wonder that the latest COVID surge in China significantly affected the world’s supply chain. Some crucial ports like Shanghai and Shenzhen have recorded a notable increase in shipment cancellations rate, with reports expecting it to go up to 31%. This came as factories found it hard to operate with limited people, especially with many reporting that more than half of workers were infected with the virus.

The latest COVID surge in China also further decreased the demand, which was already down before the fiasco, for goods and raw materials coming from the country. This led to domestic and international factories experiencing delays in procuring products and consumers seeing a shortage in supply for some necessities.

The lack of workers and reduced demand has also led to shipping companies decreasing the number of cargo ships sailing. The delays in the acquisition of freights have significantly contributed to the growth of blank sailings, referring to shipping firms skipping one port or altogether canceling their ship’s voyage. This causes delays in the delivery not only of goods but also consumer parcels in many parts of the globe.

Conclusion

As economies continue to bounce back from the crippling effects of the COVID-19 pandemic three years ago, new disruptions brought fresh challenges to the global supply chain. China’s latest COVID surge led to factories operating at limited capacity and ports experiencing bottlenecks. Countless Chinese manufacturers could not complete orders in time, and freight rates plummeted along with it.

The fear of another COVID-19 outbreak is already expected, especially with the country celebrating the Lunar New Year in late January 2023. But reports show that port congestion and freight procurement have improved in recent weeks, with pickup charges increasing by almost 10%. This can be a good sign that the supply chain will gradually go back to normal, despite the worries of another COVID surge in China.

Looking for a Reliable Freight Forwarder in the Philippines?

The whole shipping fiasco can be daunting for Filipino importers and exporters, but partnering with a reliable freight forwarding company can help you navigate the possible hurdles you’ll encounter. Excelsior Philippines has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775.

International Freight Forwarding Trends for 2023

excelsior on January 14, 2023

With the new year well underway, several enterprises are trying to do everything they can to keep up with the latest trends in their respective sectors. This includes every international freight forwarding company that will leverage new technologies to keep up with the ever-changing demands on how goods will be transported around the globe.

This year will bring unique challenges to the international freight forwarding industry. From the new COVID-19 outbreak in China, several geopolitical issues, and the continuous rise in prices, every freight forwarder international firm will need to adapt to changes to survive. To get ahead of the curve, learning about the possible trends in the industry can help freight forwarders become more flexible with their operations.

Freight Forwarders to be More Prepared

There were many issues in 2022 that challenged the freight forwarding industry, such as the Russian-Ukrainian war, the Suez Canal obstruction, and the continual effects of the COVID-19 pandemic. These events resulted in a massive disruption in the global supply chain and firms suffering billions in losses. This year, international freight forwarders are expected to be readier when facing unexpected events disrupting the supply chain.

Data collection and analysis have been more efficient in 2022, and freight forwarders are using this technology to make accurate predictions of what will happen in the next year. This will allow them to promote resiliency in their operations and be more agile, flexible, and visible in the market despite adverse situations.

Mergers and Acquisitions will Continue

The pandemic has brought growth and revenue to the transportation and logistics industry. This enticed various private equity firms looking to put their money into fast-growing sectors. And although mergers and acquisitions (M&A) slowed down recently, experts project that they will continue in 2023.

The war in Ukraine, new COVID variants, equipment shortages, and supply chain disruptions resulted in some of the major players in the industry trying to acquire more businesses to leverage the supply chain. M&A will allow them to expand their services and potentially optimize the workforce.

Sustainability will be a Key Goal for Forwarders

A Sustainable Freight Buyers Alliance report said that freight transport is responsible for 8% of the world’s CO2 emissions. And this is projected to increase to 42% by 2050. To prevent this, freight forwarders can opt for more sustainable products and practices to help the logistics industry become more environmentally friendly.

By asking for and buying products that are good for the environment, freight forwarders and shipping lines can help move the dial and reduce emissions. They can also promote green practices and technologies that can make the supply chain more efficient, effectively boosting sustainability in the sector.

International Freight Forwarders Will Go Digital

The logistics industry, like other fields, has also undergone a digital transformation in recent years. And in 2023, it is expected that more forwarders will use modern solutions to transport goods and reduce paperwork in the freight forwarding process.

Freight forwarders can also measure supply and demand more accurately, improve efficiency, and automate simple tasks by transforming their operations. This will also allow their employees to work remotely, which is still seen as the norm this year.

Conclusion

By keeping up with these trends, freight forwarders can stay competitive in the market despite various disruptions. This can also be an excellent opportunity for further growth and advancements in the field, allowing them to remain engaged in improving their services for their customers.

If you are looking for the best freight forwarding company in the Philippines, then Excelsior is for you. With almost 20 years in the industry, you can guarantee that Excelsior has everything you need regarding logistics. Our mission is to ensure that your shipment will arrive at its destination safely.

If you have inquiries, contact us at (+632) 8525-9775 or email us at wecare@excelsior.ph. You can also visit our website for more information about our services.

A Guide to the International Freight Forwarding Process

excelsior on December 15, 2022

Import and export of goods via trade is the heart of every economy in the world, which is why international freight forwarding organizations are some of the most importance firms around. International freight forwarders closely work with sellers and buyers in different countries to make sure that goods get where they need to go.

International freight forwarding companies act like the middlemen of the trade, helping both sides ensure the success of shipping. They strictly follow freight forwarder international standards which helps guarantee that the goods will be delivered on time. So, if you are a merchant or consumer that wonders how freight forwarders work, here is a step-by-step guide to help you out.

Stage One – Export Haulage

Export haulage is the process when an exporter moves their cargo to the freight forwarder’s warehouse. The forwarder use trucks or trains are used to move the cargo and might take a few hours to a couple of weeks depending on the location and other external factors.

Stage Two – Checkpoint

Checkpoint is the process of checking goods for damages or irregularities. When the export haulage stage is over, the freight forwarders who are getting the goods will check the shipment to make sure that the goods aren’t damaged in transit.

Stage Three – Export Customs Clearance

Every cargo requires clearance from the country of origin before being transported to another nation. Custom brokers do this by submitting details and supporting documents about the cargo. If a freight forwarding company does not offer this service, it is required to find a third-party customs broker service to help with the process.

Stage Four – Import Customs Clearance

The country where the shipment is going has to check the import customs documents once the shipment gets there. The freights forwarder or the customs broker chosen by the shipper can get this done before the cargo arrives as doing so can expedite the next steps of the shipment.

Stage Five – Destination Arrival and Handling

This is the stage where the cargo finally arrives and is taken care of by the freight forwarding company. Once the cargo arrives, international freight forwarders will receive documentation about the shipment from the office at origin. Here, the shipment is also transported to the forwarder’s warehouse before getting delivered or picked up by the buyer.

Stage Six – Import Haulage

This operation moves the merchandise from the warehouse to the intended receiver’s final location. Freight forwarders usually help deliver the merchandise to the shipping address. However, the consignee can also choose to pick up the shipment directly from the warehouse should they wish to.

How do Freight Forwarders Work?

Many people would think that freight forwarders have planes or ships they use to transport cargo vessels. However, this is not always the case. Instead, these companies simplify the process for both importer and buyer as they act like the main point of contact for these people throughout the shipment process.

The freight forwarder takes care of all the details of the shipment from start to finish. This includes tracking the arrival of the cargo ship and getting in touch with trucking, airline, or shipping companies to make sure the shipment is picked up and delivered on time. The freight forwarding partner handles all of these details and tells clients what they need to know.

Deliver Your Goods Using an Experienced Freight Forwarder

Excelsior is an international freight forwarder with 20 years in the industry. Our company is present in across Luzon, Visayas, and Mindanao and will make sure that your cargo is being transported at the right time safely whether by land, air, or sea. If you want to have your goods delivered by professionals, you can contact us at (+632) 8525-9775 or visit our website at https://excelsior.ph.

How Different Conflicts Affect the Global Shipping Industry?

excelsior on August 1, 2022

After multiple countries restarted their economies after years of being under lockdown, the maritime industry saw an increase in demand as businesses wished to press on and leave behind the turbulent times of the pandemic. This led to increased fuel costs that negatively affected the shipping industry as high fuel costs resulted in high shipping rates.

Shipping and freight forwarding companies had to raise shipping rates in response to high fuel prices as early as the last quarter of 2021. Even though shipping costs rose after economies reopened, this was still a sign that international trade was starting to return to normal. Still, another crisis popped up in the early months of 2022 that hit international freight.

On February 24, 2022, under the guise of a special military operation, Russia essentially invaded Ukraine. Russia was then struck with different sanctions that affected a lot, including Russian oil getting cut off from the market and further driving both oil and gas prices up. The current war did not only affect oil and fuel prices as international freight took a bigger hit thanks to the sanctions, cancelled flights, extended flights, and inflation.

In addition to the war in Ukraine, the current tensions in Taiwan can also affect the current state of global shipping as China’s People’s Liberation Army continues its military drills that simulate a blockade on Taiwan. This is after US House Speaker Nancy Pelosi visited Taiwan.

Ukraine War and Chinese Military Drills of Taiwan

War in Ukraine

Air transport is by far the most affected by the Russia-Ukraine War as multiple airlines reduced or stopped their operations between Europe and Asia. Those that continued their operations had to use extended air routes as both Ukrainian and Russian airspaces are currently closed. Thanks to extended air routes, airlines had to use more fuel, contributing to both higher fuel prices and skyrocketing prices of goods.

fuel costs that negatively affected the shipping industry — A screengrab of the current state of air traffic in Ukraine. Note the lone aircraft in the middle of the Black Sea. Due to sanctions, all airlines either avoid or skirt the Black Sea to avoid going into Russian airspace. Any aircraft in the middle of the Black Sea are likely military aircraft. Photo from live flight tracker Flightradar24.

Land freight that relies on routes going through Russia, Belarus, and Ukraine to go to and fro the European Union, China, and South Asia no longer has any safe overland routes. This means that international freight forwarding companies will need to use different routes through the UAE, Serbia, Turkey, or Romania. Customs brokers will also need to adapt to the different language barriers and document processing procedures.

The war on Ukraine also affected maritime routes in both the Sea of Azov and the Black Sea, as the routes are no longer safe. Several merchant ships have been attacked off the coast of Ukraine, making it certain that sea freight will be unreliable until the war ends. Although Russia and Ukraine recently signed a deal to allow grain shipments to move through the Black Sea to mitigate the risks of worldwide famine. Whether this means that the sea lanes will be safe for now is unknown, but Shephard Media noted that the tentative nature of the grain deal might not significantly shift the current security situation in the Black Sea, so it might not still be safe to set sail.

Like how land freight will need to rely on other routes, sea freight will also need alternative routes, making air routes a more viable option for shippers and freight forwarders.

Military Drills Around Taiwan

The blockade on Taiwan also further limited the remaining available air routes as China warned airlines to avoid flying in areas around Taiwan where the military exercises are currently held. China has also designated certain six areas of airspace as danger zones that all civilian aircraft must avoid.

US House Speaker Nancy Pelosi visited Taiwan — Graphic representation of the areas where the People’s Liberation Army (PLA) plan to hold military drills. Photo provided by the People’s Liberation Army.

While airlines have cancelled flights to Taipei and have rerouted other flights to avoid the airspace in the past few days, air traffic has just returned to normal, at least on August 8, 2022.

international freight forwarding companies — A screengrab of a longer flight path taken by an ANA Boeing 787-9 flying from Tokyo to Taipei. Source: https://www.flightglobal.com/air-transport/china-military-drills-off-taiwan-prompts-flight-rerouting-cancellations/149738.article

Even if air traffic has returned to normal, some disruptions are still expected as military drills continue around Taiwan. The extended military drills can herald a “new normal” for freight and shipping off Taiwan.

The Cost of Shipping Rising

The ClarkSea Index is a barometer of shipping fortunes, and during the War in Ukraine, it’s seen that the earnings of the shipping industry improved as the cost of shipping increased. The chart focuses only on tankers, bulkers, containerships, and gas carriers, but it’s safe to say that even the cost of shipping through the air has also increased.

The flight restrictions in Ukraine and Russian airspace effectively removed about 10 million miles of airspace and international freight routes utilized by 20% of the world’s air cargo. This resulted in longer flights and lower air capacity as carriers took alternate routes or canceled flights altogether.

If the military drills off Taiwan continue, there is a chance that the supply chain will further be negatively affected by increasing the cost of goods and causing certain shortages.

Skyrocketing prices

As shipping and freight forwarding routes were negatively affected by flight restrictions and the redrawing of route maps, the cost of transporting goods also increased as freight forwarders, and shippers had to use different routes and use other means to adapt. Longer and alternative routes will jack up fuel costs and then jack up the cost of the goods themselves.

The cost of fuel and energy reliant on fossil fuels already rose due to the higher oil prices, and the cost of other goods will only continue to skyrocket as transportation routes remain restricted. Some food prices, for one, have already eased but still remain high, but things can change if more routes end up getting closed off.

When the war in Ukraine started, there was speculation that electronic vendors might raise prices while using Ukraine as an excuse. PC Gamers didn’t exactly see this change in prices as both GPU prices and cryptocurrency crashed, and other PC parts didn’t see any price increase, at least not significant enough to warrant attention if there was any. However, because Taiwan is export-focused and its main products include electronics, there is arguably a bigger chance of prices increasing if exports are disrupted. Taiwan’s other products include the following:

electronics
information
communication and audio-video products
base metals
plastics & rubber
machinery

Taiwan’s chip manufacturing industry will also be affected as China halts its sand exports to Taiwan. The continuation of military exercises and the rerouting of sea and air freight to the country, halts in sand exports to Taiwan, and possible complications if the situation worsens can negatively affect the prices of electronics and PC parts.

For simplicity’s sake, it’s safe to assume that prices for multiple products will only skyrocket when multiple conflicts are happening that can disrupt the supply chain. As long as the war in Ukraine continues and if the situation in Taiwan worsens, there will be shortages, and price increases and the world will need reliable freight forwarders and customs brokers to keep the supply chain up and running.

Conclusion

Everyone involved in the shipping and freight industry will need to adapt to ensure that they can continue their operations amid different crises and supply chain disruptions. Shippers can only adapt to the situation and look for other transportation routes, hire competent customs brokers to ensure that shipments reach their intended destinations through the new routes, and futureproof their operations.

Businesses will need to look for reputable freight forwarders to outsource logistics to ensure that they can continue importing and exporting goods. Excelsior Worldwide Freight Logistics is one such reputable company that offers international freight forwarding and customs brokerage services.

Excelsior Worldwide Freight Logistics constantly endeavors to be a company of enduring greatness by providing only time-conscious, client-oriented, and exceptional delivery service. We also conduct free orientation for anyone who is willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about us and our service.

The Benefits of Outsourcing Logistics

excelsior on December 12, 2021

Outsourcing logistics is a cost-effective strategy to expand your international reach and increase profits. The cost of hiring employees and renting storage space is typically lower than hosting operations in-house.

Outsourcing Logistics Lessens Paperwork

Outsourcing also helps minimize the amount of paperwork, invoices, and inventory. You can focus on other aspects of your business, such as maximizing your business’s sales potential. Outsourcing also improves efficiency, which is critical for reducing costs.

Operational Benefits of Outsourcing Logistics

Aside from reducing operating costs, outsourcing logistics can also provide several strategic and operational benefits. For example, you can take advantage of a 3PL’s experience to negotiate better prices with domestic transport providers. These providers also have access to a variety of suppliers and can accommodate seasonal inventory changes. They can even accommodate seasonal inventory fluctuations. Furthermore, they have the resources and expertise to handle the complexities of supply chain management.

Outsourced Logistics Allows You to Focus More on Other Business Matters

By hiring a third party to handle your logistics, you can focus on developing your business instead of worrying about the day-to-day activities of the logistics department. It will free up your employees’ time to do more important tasks. Outsourcing logistics also allows you to focus on other aspects of your business, such as marketing. The results of outsourcing logistics are worth the extra cost. If you’re planning to grow your business in the future, outsourcing logistics may be the perfect solution for you.

Outsourced Logistics Saves More Money

The most obvious benefit of outsourcing logistics is cost savings. Outsourcing your business’ logistics to a third party will save you money and improve control and visibility of your company’s inventory and orders. It will also ensure that you get the best service for your money. When it comes to saving money, outsourcing your business’s operations to a third-party logistics provider is a great way to go. All of your staff can focus on running your business, leaving you free to focus on growing yours.

Outsourcing logistics can also reduce costs. Your team will have more time to focus on innovations, and you will no longer need to worry about managing a logistical department. By hiring a 3PL, you can focus on core business functions. Your team will be able to focus on these things, which means you’ll be able to focus on your logistics. You will be able to concentrate on your business and not worry about logistics.

Key Takeaways

Outsourcing logistics helps your company’s fulfillment process run more efficiently. Outsourcing your logistics to a third-party provider will free up your time to focus on other aspects of your business. You will also be able to save money by cutting operational expenses and investing in other areas of your business. You will be able to focus on your core business while you’re outsourcing your logistical operations. When you outsource logistics, you’ll have the freedom to concentrate on other aspects of your company.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Tips for Managing the Supply Chain of Your E-Commerce Business

excelsior on November 24, 2021

Managing the e-commerce supply chain requires some important logistics skills, and this article will discuss the most critical of these. Regardless of the size of your business, it is essential to understand your entire business’s supply chain, including the components that are interconnected. The average e-commerce supply network is more complex than ever, and you need to be proactive instead of reactive. This means developing a predictive software solution to forecast demand and respond to it accordingly, similar to most recommendations that you will get from the most respected logistics company in the Philippines.

Supply Chain

Identifying the Issues with The Supply Chain

Before you start your e-commerce supply chain, you should do a high-level process review. This can give you a comprehensive picture of the issues you need to address. In addition, this will help you to identify potential challenges and bottlenecks in your e-commerce supply chain. This will make your decisions easier and improve your business’s performance. Here are some helpful tips: (1) Determine what your customers want; and (2) Understand the challenges and benefits of each stage, and (3) consider hiring reading more about international freight forwarding.

Optimize your supply chain. Managing the supply chain will increase customer satisfaction and reduce operating costs. As you add items to your inventory, you must optimize your process to ensure that they arrive at their destination on time and in perfect condition. Typically, slotting is done at the SKU level. This is the wrong approach because it will lead to dead stock and negatively affect your business. By focusing on how much each step in the supply chain will cost, you’ll be better able to predict where each item will sell and when it will be delivered to customers.

Avoid duplicating processes. While duplicating processes can increase productivity, it is a common mistake for eCommerce startups. Many people end up with duplicated inventory, which increases their operational expenses. A good database administrator will be able to compare rates in seconds. If you can’t manage this, you can use a free-shipping rate calculator that will do the work for you. When it comes to cost, make sure to look for similarities between the two processes.

Proper planning and data collection are critical for e-commerce success. While it’s important to take care of inventory, capturing data will help your team focus on key metrics. This information is essential for e-commerce fulfillment and can be used as true north. It will provide a solid basis for your forwarding organization to manage your e-commerce supply chain. Aside from being the most critical component, the e-commerce supply chain will also benefit from a solid relationship with the customer.

A good e-commerce supply chain will include regular inventory audits and effective communication with customers. When it comes to delivery, consumers expect minimal delivery charges and zero human errors. In addition, a streamlined supply chain will help minimize the risk of damaged goods. This will also reduce your costs and make it easier for your customers to communicate with you. It will also help you avoid mistakes when dealing with third-party suppliers.