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Issue 1 2019 - FBJNA From the Editor


CONTACTS 2019 SALES


MATT WEIDNER Tel: + 1 610 486 6525 matt.weidner@fj-online.com


JOHN SAUNDERS - PUBLISHER Tel: +44 (0)151 427 6800 Mobile: +44 (0)7932 102026 john.saunders@fj-online.com


EDITORIAL


KAREN THUERMER-EDITOR karen.thuermer@fbj-online.com CONTRIBUTING EDITORS: PETER BUXBAUM MARK CALDWELL HANK DONNELLY JOHN JETER ADINA SOLOMAN


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LORRAINE CHRISTIAN Tel: +44 (0)151 427 6800 lorraine.christian@fj-online.com


ANDREA CAZZOLATO Tel: +44 (0)151 427 6800 andrea.cazzolato@fj-online.com


HEAD OFFICE


FREIGHT BUSINESS JOURNAL NORTH AMERICA 1468 ALTON WAY DOWNINGTOWN, PA 19335 USA Tel: + 1 610 486 6525


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Critical industry issues worth noting


By Karen E. Thuermer


Washington is up to its dysfunctional ways again. Trump’s imposed government shutdown, which – hopefully – will be over when this FBJNA issue hits the streets, has not only inconvenienced more than passengers on flights. As of this writing, 800,000 federal workers, including those working for the TSA, have not received their paychecks in well over a month. With the FAA unable to issue supplement type certificates (STC), those


passenger airplanes being converted to freighters have been delayed, along with delays to aircraft registry documents and other certification paperwork, reports Cargo Facts. Brandon Fried of the Airforwarders Associations comments that previous


efforts by the air cargo industry to work with Congress and the TSA to allow the industry to provide its security have produced dividends. But the partial shutdown is creating problems. “While the flow of air freight has generally been unimpeded, we see


challenges behind the scenes that are not necessarily transparent to the public,” he said to FBJNA. He writes: “Since much of upper-level management is not working, the


processing and renewals of Security Threat Assessment applications are encountering delays. Also, questions requiring web platform issues needing help desk assistance are going unanswered.” Fried emphasizes that there has been virtually no significant managerial


support from CBP and the Census Department regarding Automated Export System fatal error corrections. Staffing at the Directorate for Defense Trade Controls required for export licensure is limited or absent, and, according to Fried, this lack of personnel will become problematic quickly as shippers requiring export licensing may not have the ability to obtain their necessary export permits. “Shippers looking for essential US export process information are facing a lack of availability as the popular and useful Export.Gov website has not been operating during the shutdown,” he says. “While some CBP staffers are working, our members report that routine


assistance is limited and difficult to obtain for Automated Commercial Environment support,” Fried writes. He cites one Airforwarders Association member who says that her long-awaited approval for a Container Freight Station has encountered a further delay. “As the backlog of unresolved problems increases, the amount of them builds exponentially for even more substantial possible delays when government workers return,” he says. Meanwhile, Airforwarders Association members are working with their


shippers to keep them informed of the rapidly changing situation and providing continuous shipment updates. In another concern not related to Washington politics, Patrick Maher,


Executive Vice President, Gulf Winds, tells FBJNA that a critical capacity environment has been created for all stakeholders, Ocean Carriers SM Lines, ZIM, Hyundai, and Maersk. It’s a disturbing penalty on “street turns” ranging from $30-$75 a box, he says. According to Maher, enforcing an efficiency penalty on trucking companies


and the carriers’ clients, will have a ripple effect across the supply chain. “Most notably, it comes on the back on hard working drivers,” he said. “Their earning potential will be negatively impacted during a time when great strides have been made by the industry to increase turns, driver pay, and efficiencies. Anything that restricts, inhibits or impairs a street turn will result in everyone losing,” He notes specifically that the restricting or impairing of street turns will


increase the number of trucks in and around ports, counter to all green initiatives; add increased congestion on roadways and port terminals;


Kevin Springer, SMC3


///NEWS


Freight Business Journal North America - FBJNA reaches out to the decision makers and influencers involved in international freight transport and logistics. FBJNA boasts the most informative and authoritative source of information with unrivalled in depth knowledge of the rapidly changing freight business environment. Our complimentary website www.fbjna. com provides the most up to date news and analysis from within the international shipping industry.


If you have any stories or letters which should be of interest or any feedback on FBJNA, please contact our editor Karen Thuermer - karen.thuermer@fbj-online.com


next issue >>


Our next issue will include features on: West Coast Ports Update, Asia Trade, 3PL Quarterly: Blockchain in Logistics, Commodity Focus: Textiles and Apparel. For further details contact: Matt Weidner - T: + 1 610 486 6525 E: matt.weidner@fbj-online.com


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To guarantee your personal copy of FBJNA please register by visiting www.fbjna.com.


Total Circulation 12,275


contribute to higher rates to shippers as fees and inefficiencies must be passed along; further reduce driver capacity as more trucks will be needed to haul the same volumes; and will have a negative impact on driver wages through less turns being achieved in a workday. “We will continue to work through our trade associations and ask that


you also make your voice heard on this important issue,” Maher said. “If you have any questions or would like to discuss further, please contact your GWI Business Development Representative.”


FBJNA Apologies


FBJNA apologies to John Singleton, CEO of Wen-Parker Logistics, for a mistaken identity in a pull-quote that appeared on Page 23 in Issue 9 2018 (Nov-Dec) in the story: “Tariffs, Global Manufacturing Shiſts, Among Customer Relations Challenges for 3PLs” written by John Jeter. The corrected source and photo should have been Kevin Springer, SMC3


, who said: “Our customers


are always asking for something new, something to solve their problems.” Mr. Springer’s photo and title should have appeared with the quote instead of Mr. Singleton’s, who was quoted elsewhere in the story. Again, our apologies.


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