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   Vol. 23 No. 40

Wednesday October 2, 2024

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Automation Makes People More Efficient

Donna Mullins Donna Mullins
Vice President
Kale Logistics Solutions

     Dock strike does not leave the best and the brightest in air cargo speechless.
     Here are thoughts and strategies for moving cargo during the U.S. dockworkers strike, which is halting half the nation's ocean shipping.
     Donna Mullins of Kale Logistics Solutions is an industry veteran with close to four decades of experience in the logistics and supply chain industry. She has held key positions in airlines, freight forwarding and customs brokering firms.
     Under her stewardship, companies expanded their global footprint and capabilities.
     Today Donna and the team at Kale Logistics including CEO Amar More and others are changing the way air cargo gets in and out of airports everywhere as fast as possible.


While I cannot applaud the current administration for their actions regarding the strike, I certainly do applaud U.S. Customs & Border Protection.
     Customs started taking proactive measures last week to allow for entry port changes prior to the start of the strike.
     This will help to move already delayed cargo faster once it does arrive at an operational port.
     Federal Maritime Commission has also stepped up to ensure detention and demurrage charges are not exaggerated.
     NVOs and BCOs should be reviewing the FMC D&D suggestions.
     According to press reports, in addition to other grievances the International Longshoremen's Association (ILA) is strongly against automation for fear of being replaced.
     Please let me be clear here - automation doesn't inherently replace people, it makes people more efficient.
     Our Cargo Community System automation for ports and airports helps to streamline cargo status information among stakeholders . . . including the ILA workers . . . to increase cargo and container throughput, reduce truck wait and dwell times, and allows the trusted trade partners the ability to view real-time tracking of the cargo movement.
     For now, if you need your merchandise before the waters calm, no pun intended, you should be considering an air alternative.
     There is no set time frame for the strike and with us seeing a $5.6 billion dollar a day economic impact and backlogs worse than the pandemic it might not be the right time to 'wait and see'.

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Smart Thinking And The Port Strike

Eduardo Del RiegoEduardo Del Riego
CEO
PayCargo


     Moving cargo during the U.S. dockworkers strike, which is halting half the nation's ocean shipping, is the question.
     Eduardo Del Riego said:


I am following this situation very closely.
There is no real way of getting the volumes moving to the level to off setting this strike.
     A mix of air and rerouting cargo to West Coast ports, Canada, and Mexico
can keep a minimal amount of products moving.
     Anything over two weeks will create shortages and damage our
economy.

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American Is Ready To Help

Roger SamwaysRoger Samways
Vice President, Commercial American Airlines Cargo


     Somehow after nearly 28 years in air cargo, the erstwhile Roger is out and about retaining a youthful exuberance we can all admire.
     But right now where the rubber meets the road, here are some seasoned thoughts and strategies from Roger for moving cargo during the U.S. dockworkers strike, which is halting half the nation's ocean shipping.

The situation is certainly fluid, and we are continuing to engage with our forwarder partners to ensure that we are ready to meet the changing needs of their customers.
     We have seen a strong uptick in volumes across our network over the last 10 days, and especially moving to the U.S. out of Europe and Latin America. We partially attribute this to customers looking to move business ahead of any port strike.
     Any increase in demand stemming from the port strike is coming at a time when demand across the industry is already high. American is not alone amongst carriers reporting double digit growth in volumes YTD.
    Speaking with our forwarder partners, although some ocean freight shippers have looked to “de-peak” by moving shipments early in the summer ahead of a traditional peak, there are many who have not done this. Airfreight requests from these shippers is beginning to grow and could grow rapidly if the strike persists.
     American is ready to help – we have an extensive Transatlantic and Latin American network which offers 814 widebody flights per week between the U.S. and Europe and 154 widebody flights per week between Latin America and the U.S.
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Euro Forwarders Knock Around The Clock

Nicolette van der JagtNicolette van der Jagt
Director-General
CLECAT, (European Association for Forwarding,
Transport, Logistics and Customs Services).


Nicolette van der Jagt, who has served as the Director General of CLECAT since January 2012. Nicolette is knowledgeable, dependable and resourceful, with impressive character and keen political instinct.
     Here is her thoughtful take on matters today concerning Europeans and the U.S. East Coast Dock Strike.


For European freight forwarders and shippers, the unfolding U.S. dockworker strikes on the east and Gulf coasts are intensifying an already challenging situation. With the ongoing disruptions caused by the Red Sea crisis, the industry is forced to deal with equipment imbalances, higher costs, and operational bottlenecks.
     One of the immediate impacts is the shifting of containers to less optimal locations, which means freight forwarders will need to manage the logistical complexity of repositioning equipment. This disruption is already leading to surcharges and re-routing expenses as shippers look for ways to mitigate delays. Additionally, there is an expectation that freight rates will surge due to heightened demand and capacity constraints, particularly on key shipping lanes.
     For European freight forwarders, the knock-on effects are that they will need to consider alternative strategies, such as increasing reliance on airfreight. With demand for air cargo capacity spiking rates are expected to soar, particularly for express and guaranteed cargo. This complex situation requires European freight forwarders and shippers to proactively manage their supply chains by tracking inbound shipments closely, collaborating with shipping lines to find alternative routes, and considering expedited solutions like airfreight.

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Port Strike View From Ram Menen

Ram MenenRam Menen
Emirated SkyCargo
Retired

     Ram Menen is well known in the industry as the man that started up and built the cargo division of Emirates SkyCargo.
     He is also a founding member of The International Air Cargo Association TIACA as well as Past President, CEO and Chairman of the Board.


Although there is never a good time, this U.S. east coast port strike has come at a very inopportune moment, when the market is already at high point, even, before the normal peak periods.
     The alternatives would be to find other ports which are not really affected and reroute the ships to those places.
     The chances are every solution you look will create additional transportation/distribution costs as well as expensive delays for cargo which is already in the waters.
     Air cargo will benefit while shippers try to get top up inventory as quickly as possible.
     But capacity at the moment is tight and finding capacity will be a bit of challenge.
     Rerouting ships to external ports where sea/air can be affected can also be a good strategy.
     In the immediate cure, the closure of factories in China for the golden week celebration, will free up some air capacity for short haul sea/air mode, however, the window of opportunity is already closing.
     The demand for air cargo post the golden week is going to be extremely tight and will be at a premium.
     Every which way you look the supply chains are going to take a hit.
     The impact will affect every aspect of normal life in the regions where the strikes are taking place and elsewhere.
     This where logisticians can and will get very creative and find best possible solutions.

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Alternatives During U.S. Dock Strike

John GemmellJohn Gemmell
Principal
Gemco Aviation


      Here John, a top to bottom air cargo professional shares some thoughts on the growing U.S. East Coast Dock Strike.

 Obviously shifting to alternative ports not being struck, Including Canada and Mexican ports offer some possibilities.
     These ports will experience capacity constraints and delays due to increased volumes.
     Also utilizing different ports will drive using more intermodal transportation , trucking, rail, barge, in getting goods to regional inland markets and distribution centers.
     Though considerably more expensive, air charters are the obvious possibility for time-sensitive, high-value, such as electronics, Pharma and perishables.
“Charter rates will soar in an already tight market competing with e-commerce shippers, especially approaching late Christmas market and inventory
demands!


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chuckles for October 2, 2024


Buffalo Airways Cargo Barges Ahead
     What do you do when the water is low and barge shipments are curtailed?
     Many folks that live in the northwestern area of Canada, way up where smallest native settlements are cut off from any other way to get supplies for many months of the year, can discover that resourceful Buffalo Airways now operates its B737 freighter into the region, that currently is in a logistics pinch.
     Buffalo, to the rescue, is offering the supplyline an option for year-round shipments, big and small.
     This summer, as example, Buffalo Airways launched a "Sahtu Air Barge" to keep the northern supply lines open.
     The Sahtu Region is an administrative area in Canada's Northwest Territories made up of the communities of Colville Lake, Deline, Fort Good Hope, Norman Wells & Tulita.
     The communities in the Sahtu usually can rely on barge shipments to bring cargo and fuel during the summer months, but low water levels on the Mackenzie River have had ongoing negative impact on barge traffic.
     Utilizing a full and well-maintained fleet of DC3s C46s and Lockheed 188s (Electra) to carry freight, the “Ice Pilots” of The Weather Channel TV fame answer the call.
     One of Buffalo’s C46s by the way was once operated by mighty Lufthansa Cargo.
     But it is not only nostalgia and heft at work here, it is also heart.
     These airplanes and their crews and the McBryan Family that guides their missions have both lengthened and broadened the fleet with an all-cargo B737F.
     As everyone in this game knows, and most understand, filling up the beast is the all-cargo burden, and the-around-the-clock objective of sales and marketing.
     And in that department Buffalo actually has someone who is both clever and always caring with an unfailing sense of place and customer service, named Mikey McBryan.
     “While our Air Barge program understandably cannot solve all the challenges shippers are faced with, Buffalo is dedicated to provide the most cost-effective alternative to barge freight, for those that can't wait until this winter’s ice trucker road season to move their cargo," Mikey Mc Bryan said.
     “Buffalo Airways continues offering 60 cents per pound for general cargo with a minimum shipment of 2,000 pounds from Yellowknife to Norman Wells.
     “From Norman Wells to Deline and Tulita, the rate is 50 cents a pound and 75 cents a pound for flights from Norman Wells to Colville Lake and Fort Good Hope.
     “Buffalo Airways B737F freighter from Yellowknife to Norman Wells,” Mikey noted, “delivers a solid capacity of 21 tons a flight per flight.
     “Call us, we are here to help,” Mikey smiled.
GDA


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