Uncategorized - The SPL Group

Environmental Regulations and Trucking

Joel Moskowitz — Thu, 11 May 2023 21:41:39 +0000

Environmental Regulations and Trucking

The State of California is known for leading the nation in regulations. So it is no surprise that California’s powerful Air Resources Board (CARB) has adopted the Advanced Clean Fleet rule after several years of proposals and hearings. The rule intends to eventually end using internal combustion engines (ICE) on California’s roads. This comes on the heels of regulations passed by CARB that require all vehicles sold in the state to be electric, hydrogen-fueled, or at minimum, plug-in hybrid by 2035. Southern California is home to the nation’s busiest ports, Los Angeles and Long Beach, which have strict environmental rules in place already. Recently, the Biden Administration released a new proposal on emission standards for all trucks and automobiles on a federal level, considered the toughest ever.

Protecting the environment is a noble cause; it’s also a complicated goal from an economic standpoint because of the financial effect on business. Furthermore, it is an issue that has been going back and forth for decades. Here, we examine both sides. One thing is certain, the move toward lower emissions of greenhouse gasses is plowing ahead. What is not fully clear is how fast it will go and who will lead the charge; the government or the private sector.

If it isn’t already, it is expected that Tesla will be the best-selling automobile in the world in 2023. Tesla is 100% electric, and what makes it stand out, besides its product’s quality, is the vision of the current CEO, Elon Musk.

Tesla was making electric vehicles before there was an infrastructure for charging and before there was popular demand. In fact, previous attempts by more experienced automakers were not successful. General Motors released the EV1 concept car in 1996, and its whole history is mired in controversy and conspiracy theories. But the reality is that the era of very cheap gas prices was starting around then, and there simply was no market or appetite for EVs.

Recently, while Tesla was taking off on its own, two events catapulted the automaker forward; Covid and Russia/Ukraine. In response to Covid and the lockdowns it brought, the government stimulated the economy with $trillions causing inflationary pressures to begin and prices on everything to rise. The Russia/Ukraine conflict and the resulting sanctions on Russia, one of the world’s largest crude oil producers, also caused gas price increases. Tesla is a prime example of the market leading on the issue, having invested heavily in a market that didn’t exist yet, betting on infrastructure that hadn’t been planned yet, getting built, and being in the right place at the right time.

The rise in gas prices may have helped bring more people around to EVs, but environmental changes have been on the minds of regulators for years. For a while, the science of climate change was questioned; now, few people dispute that climate change is real. In 2022, the US was hit by Hurricanes Ian and Nicole, the Colorado, and Mississippi Rivers experienced record low water levels, Europe had record heat waves, the Rhine River also had dangerously low water levels, and there were other major climate events around the world. This past winter, the US was hit with a Polar Vortex, and in California, flooding was caused by a rare weather event known as an “atmospheric river.”

Where people differ is the pace of implementing a solution. People of a certain age can recall the resistance to seat belts, 55 MPH speed limits, and airbags. At first, the objection to those things was portrayed as personal liberty issues. However, when the data was disseminated, and the benefits were incontrovertible, the objections came from the automakers and the gas companies who stood to lose money or have higher costs. Eventually, they became a reality.

The biggest objection to the CARB regulations in California and overall automotive emission standards comes from trucking companies that are either small companies or owner-operators. Unfortunately, these regulations create a considerable burden, forcing owners to make a substantial investment or close their operations. With higher prices, lower volume of sales, and thinning profit margins, these SMB truckers simply cannot afford the mandatory changeover. As of January 1, 2023, all drayage trucks over 26,000 lbs. vehicular gross weight must have engines from 2010 or later. And if you enter the facilities of the Port of Long Beach, your truck must be a 2014 model or newer. These regulations have obliged all operators in California to upgrade their fleets to comply.

The balance between necessity and economic feasibility has not yet been met in California or nationally. There is a strong argument that all of these regulations favor big trucking companies and harm the smaller ones. The counterargument is that the regulations are needed to provide regulatory certainty. Still, it’s not so simple. The issue of the environment needs a global solution. While the US is responsible for 14% of the world’s carbon emissions, China is responsible for 30%, more than the US and Europe combined. Russia accounts for 7%. With 50% of carbon emissions generated by three world powers with conflicting interests, finding a global solution is farther from reach than ever. It doesn’t mean the US should give up, stop or not do its part. It simply means that a global solution is beyond the horizon. The trucking industry, with some merit, feels like they are being scapegoated.

Meanwhile, with less regulatory aggressiveness put on them, ocean freight and air carriers are plowing ahead with going green. Still, the players in that arena are usually large, often public companies with multiple options to access cash for infrastructure investment. Ultimately, even ships and cargo planes need their containers unloaded and delivered somewhere. The need for trucking is not going away anytime soon. The question is, will there be enough trucks around to meet environmental regulations and deliver everything efficiently and cost-effectively?

The post Environmental Regulations and Trucking first appeared on The SPL Group.

The post Environmental Regulations and Trucking appeared first on The SPL Group.

DHL Incentivizes Customers to Go Green

adminsplgroup — Wed, 30 Sep 2020 20:18:33 +0000

DHL Incentivizes Customers to Go Green

Bobby Tawil

IT Manager, The SPL Group

Share!

Ocean freight enterprise DHL Global Forwarding is implementing a new, environmentally friendly incentive program for customers. Starting January 1, 2021, the company will use marine biofuels to neutralize the carbon emissions of less-than-container load (LCL) shipments, to minimize their impact on the environment.

“To fight against climate change, the transport sector needs true decarbonization. For us at DHL Global Forwarding, sustainable fuel solutions are the key lever to change the fuel mix and ultimately reduce carbon emissions in ocean freight. This is why we have taken the decision to neutralize the carbon emission of all our LCL shipments. Even though we are in unprecedented times, due to the ongoing pandemic, we have to make sure that climate protection and sustainability efforts remain at the forefront,” said Tim Scharwath, CEO of DHL Global Forwarding.

At no extra cost to the customer, the company will replace the heavy oil ordinarily used with sustainable marine biofuel on a preselected container vessel. The CO2 reduction benefits normally given to the company for sustainable alternatives will be given to the customer. Additionally, DHL’s GoGreen program gives the carrier preference as a reward for making environmentally sustainable choices.

Incentive programs such as the one implemented by DHL can dramatically reduce carbon emissions while also providing a financial incentive for the consumer to do so.

The post DHL Incentivizes Customers to Go Green first appeared on The SPL Group.

The post DHL Incentivizes Customers to Go Green appeared first on The SPL Group.

Why Ecommerce is the New Normal

adminsplgroup — Fri, 26 Jun 2020 15:55:13 +0000

Why Ecommerce is the New Normal

Bobby T.

Information Systems, The SPL Group

Share!

The coronavirus pandemic has resulted in a massive surge in e-commerce volumes. By April, many carriers saw increases in sales of over 50% since February. Here are five reasons why e-commerce may very well become the “new normal.”

Brick and mortar stores will be slow to reopen– before the pandemic, e-commerce comprised around 14-15% of retail. However, during the pandemic, e-commerce became one of the only ways to obtain items deemed “non-essential.” While brick and mortar stores will reclaim some of the revenue when they reopen, it will be slow, and consumers will be reluctant to return to brick and mortar stores. This may very well be the ultimate downfall of brick and mortar retail stores, as we are seeing many businesses go bankrupt amid the corona outbreak.

Brands and retailers are reconsidering their channel mix- Many retailers which were mainly brick and mortar had to have an online presence even before the pandemic. Now, with during the pandemic, e-commerce seems to be the only game in town, and that will last a while. Brick and mortar retailers will have to reconsider if it is worth it to keep their shops open amid this new surge in e-commerce. Consumers are realizing how much more convenient it is to buy things online than in person.

Consumer trust in online vendors is at an all-time high- Prior to the pandemic, brick and mortar stores still had their place; consumers like to be able to interact with a product before they buy it. However, once covid-19 started to be taken seriously, these same consumers had to step out of their comfort zone and give e-commerce a chance.

Virus-related products will remain popular- Since the start of the pandemic, people have become almost neurotic about washing their hands. Products such as Purell, Clorox wipes, and hand soaps have seen a huge increase in sales, and they will likely continue seeing these sales figures.

The SPL Group now offers Corporate Management. Have a senior SPL representative manage your shipping & logistics. We know shipping!

Declines in consumer-spending will not offset progress- Corona has had a major impact on the economy. Unemployment is now at 13.3%. Naturally, people want to conserve their money. While it is true that consumer-spending has decreased, the bulk of spending during the pandemic has been through e-commerce. While overall consumers are spending less, e-commerce now has a much larger slice of a smaller pie.

The post Why Ecommerce is the New Normal first appeared on The SPL Group.

The post Why Ecommerce is the New Normal appeared first on The SPL Group.

The Ripple Effect of Covid-19 on the Shipping Industry

Leon Sakkal — Tue, 14 Apr 2020 19:41:50 +0000

Covid-19 and its Ripple Effect on Everything #Shipping

Leon Sakkal

Marketing, The SPL Group

Share!

The rapid spread of coronavirus has had a major impact on global shipping markets, with the slump in demand for goods from China having a ripple effect on everything from container ships to oil tankers.
Initially, everyone thought that it was China’s problem. Well – nobody thinks that anymore! The first country to be hit by Covid-19 (China, duh.) is now the only one with a recovering economy and re-emerging population. For the rest of the world, uncertainty is the only certainty.

The soon-to-be global pandemic began in late December with only a dozen cases in Wuhan, China. The coronavirus outbreak has now tightened its grip on the entire world, with Europe as its current epicenter. As of the 2nd April it has now infected almost 900,000 people and claimed nearly 50,000 lives.

With Western countries now enforcing nationwide lockdowns that could last for months if not years, world economies are in danger of bleeding out. Numerous industries are at a standstill and the shipping sector is navigating uncharted waters.

Over the past two months, Ship Technology Global has been speaking to analysts and experts – both directly and indirectly – to offer a comprehensive view of how the global pandemic is affecting the logistics industry.
Prosperity within the #shippingsector has long been strongly tied to China, a major trade partner for several countries and a key leader in shipbuilding. Throughout January, during which the virus started spreading across the rest of the country and to its neighbors, the industry seemed to experience only a marginal impact – initially witnessing only a minor fall in demand as ports in China and nearby countries started operating at limited capacity.

The situation largely deteriorated as January passed by and the CNY holidays were extended. After a passenger tested positive for Covid-19 onboard a Princess Cruises ship off the coast of Japan, ports started limiting – and eventually banning – cruise traffic at their terminals.
From the very beginning, these initiatives caused significant setbacks for both the cruise and shipping sectors, which found themselves dealing with orders and trips cancellations, spikes in costs and a drop in trade opportunities. In addition, Chinese shipping was hit by a nationwide ban on all non-essential travel, a largely reduced workforce and the closure of production and shipbuilding facilities.

According to figures from Chinese think-tank the Shanghai International Shipping Institute, this led to reduced capacity utilization – which fell between 20% and 50% at the biggest Chinese ports – and a sharp increase in the use of port storage facilities.

Though things may seem grim, let’s have a look at the importance of keeping the economy going.

As the world enters the fourth month of the coronavirus pandemic, recovery could be in the cards for the container sector, with the weekly number of large container ship journeys originating in China now going back up.
Although undoubtedly positive news, this trend is already slowing down as the pandemic takes over India and its neighbors – Bangladesh and Pakistan, which own some of the largest demolition yards in the world.
While it’s almost impossible to make short-term forecasts for the shipping sector once the pandemic has slowed, the post-coronavirus years will undoubtedly be all about digital disruption.

Demand has dropped across the board, including at ports. The trucking industry, the shipping industry – almost anywhere you look Covid-19 has slapped us all in the face, and what’s coming seems to be even more disruption; in different forms.
But disruptive doesn’t necessarily mean damaging, as the crisis could become a key catalyst for digital and technological advancements in the shipping industry.
Change in these regards could be threefold. The first step will be increasing investment in freight technologies as well as companies providing data analysis, artificial intelligence software and overall end-to-end supply chain management. This will be key as it reduces the shock, increases the resilience, [providing] more data, more information, greater ability to manage inventories to track the rates and timing of the shipping that is done.

Increased investment in these segments will be accompanied by growth in the autonomous transportation sector, paving the way for autonomous shipping. The nature of autonomous activities is one that can solve many problems, and deal with resilience in the core.
These will likely translate into the further evolution of e-commerce into a largely tech-savvy industry with cargo drones, 3D printers and robotics at its disposal. Covid-19 will have a disruptive power across all industries, but particularly in the supply chain and in the transportation sector. And it won’t just be in the short term.

Let’s try to keep positive, and remember! #WereAllInThisTogether

The post The Ripple Effect of Covid-19 on the Shipping Industry first appeared on The SPL Group.

The post The Ripple Effect of Covid-19 on the Shipping Industry appeared first on The SPL Group.

The Uncertainty Continues

adminsplgroup — Fri, 27 Mar 2020 18:00:31 +0000

The Uncertainty Continues. The Latest.

Leon Sakkal

Marketing, The SPL Group

Share!

As the world continues to monitor the spread of COVID-19, new policies are rapidly being put in place to minimize the spread.

In today’s news:

UPS is committed to operating globally –except where constrained by government restrictions. Effective just yesterday, March 26, and until further notice, UPS has suspended the UPS Service Guarantee for all shipments to any destination, and at all service levels. As the effects of the Coronavirus impacts their infrastructure, they will continue to seek guidance from local and national government entities regarding applicable regulations.

Our friends with India Post have suspended all international mail exchanges until further notice; Maldives Post is suspending the processing of all inbound and outbound mail until April 4, 2020; Zimpost is unable to guarantee inbound and outbound mail standards. But USPS will continue to accept and process mail destined for India, The Maldives, and Zimbabwe.

If you have been crushed by the freight rate volatility, consider having the shipping experts at The SPL Group manage your logistics.

Retail Dive reports that “73% of consumers will increase online shopping if the COVID-19 outbreak continues, and 58% of consumers have already bought more goods online than usual.”

The World’s Largest Online Marketplace

Amazon warehouses are facing a growing tide of coronavirus cases with at least 11 facilities hit so far, according to Amazon and local media reports.

One person who works in Amazon’s Staten Island fulfillment center tested positive for the novel coronavirus. The person, who was last at work physically on March 11, is in quarantine and recovering, Amazon said. This marks the second time Amazon’s warehouses have been hit in New York. This, coming just a week after the first reported case at an Amazon facility in Queens, NY.

The company also confirmed a case at a facility in Edison, NJ on Wednesday. Other positive cases have been reported at Amazon facilities in Moreno Valley, CA; Jacksonville, FL; Shepherdsville, KY; Brownstown, MI; Oklahoma City, OK; Katy, Texas; and Wallingford, CT.

Learn how The SPL Group can help you navigate through this difficult time. We can help you lock in rates that will not hike in a black swan event.

Amazon has temporarily closed some sites, such as the Queens location, but has largely refrained from mass closures. The company says they are “Taking extreme measures to ensure the safety of employees at our sites”.

That includes regularly sanitizing door handles, elevator buttons, lockers and touch screens, as well as staggering shifts and spreading out chairs in break rooms.

The spread of the virus within Amazon’s massive logistics operation may only add to the anxiety among workers who have previously said they felt Amazon should be doing more to protect the hundreds of thousands in its warehouse facilities across the US.

The additional cases also threaten to disrupt shipments and delay deliveries even as millions of Americans are becoming more reliant on the service as they are told to leave their homes as little as possible. The company is already warning visitors to its website of longer delivery times and encouraging customers to select no-rush shipping if their needs are not urgent.

Amazon is witnessing spikes in demand that are comparable to the surge surrounding peak holiday periods such as Black Friday, says Jay Carney, Amazon’s senior vice president of global corporate affairs.

“We’re boosting employment by 100,000 in the way that we do for seasonal periods like the holiday, when we need extra workers,” Carney said.

One worker at the Staten Island facility told CNN Business that despite confirming the positive case to the media, Amazon had not notified workers at the site through email, text message, call or update in the company’s employee app — pointing to a lack of internal transparency.

The SPL Group now offers Corporate Management. Have a senior SPL representative manage your shipping & logistics. We know shipping!

That includes regularly sanitizing door handles, elevator buttons, lockers and touch screens, as well as staggering shifts and spreading out chairs in break rooms.

“We’re boosting employment by 100,000 in the way that we do for seasonal periods like the holiday, when we need extra workers,” Carney said.

Instacart Plans to Hire 300,000 More Workers as Demand Surges for Grocery Deliveries

In other news, Instacart (the American technology company valued at nearly $8 billion that operates as a same-day grocery delivery and pick-up service in the U.S. and Canada) is experiencing a surge of new workers as people remain in quarantine.

Our team is available for any questions you may have regarding these updates. Please reach out to your The SPL Group representative, or send us an email at info@TheSPLGroup.com for further assistance.

#WereAllInThisTogether #FlattenTheCurve

The post The Uncertainty Continues first appeared on The SPL Group.

The post The Uncertainty Continues appeared first on The SPL Group.

To Freeze or Not to Freeze – Global Ports

adminsplgroup — Wed, 25 Mar 2020 19:13:23 +0000

To Freeze or Not to Freeze – Global Ports

Albert S. Grazi

Sales Associate, The SPL Group

Share!

As countries seal borders to prevent the spread of the flu-like virus, the shipping industry, too, has taken a hit. Ships and their crews must be able to trade freely with minimal port restrictions to ensure supply lines don’t freeze up while the coronavirus shuts down much of the globe!
After draconian steps to stop the spread of the virus, China’s economy is slowly coming back online, but logistics chains are backing up in other parts of the world. This has been compounded by ships being quarantined for up to two weeks and seafarers held up as countries impose lockdowns to stop the spread of the virus.
The International Chamber of Shipping (ICS) association, which represents more than 80% of the global merchant fleet, and the International Association of Ports and Harbors (IAPH) jointly called on the Group of 20 major economies to allow merchant shipping to keep flowing.
“Ensuring that seafarers can travel without undue restriction will be key to maintaining the flow of food, medicine and key commodities to those countries that need it most,” said ICS secretary general Guy Platten, urging crews to be classed as key workers.

If you have been crushed by the freight rate volatility, consider having the shipping experts at The SPL Group manage your logistics.

“The G20 can send a clear message to all countries.”
G20 leaders will convene a video conference on Thursday to discuss the coronavirus epidemic, multiple sources told Reuters, amid criticism that the group has been slow to respond to the global crisis. IAPH managing director Patrick Verhoeven said governments had to do “everything possible to allow transport of goods in and out of ports.”
Italy faces the biggest risks with the shipment of goods, shipping officials say, with the death rate from the virus in the county now exceeding that in China.
“As Italy is considered a main area of concern in the world … it makes it even more challenging for the shipping companies to carry on trade and be the lifeline needed for supplies for Italy,” says Stefano Messina, president of Italy’s shipping association Assarmatori.
G20 finance ministers and central bankers agreed during a separate video conference on Monday to develop an “action plan” to respond to the outbreak, which the International Monetary Fund expects will trigger a global recession.

Learn how The SPL Group can help you navigate through this difficult time. We can help you lock in rates that will not hike in a black swan event.

The unprecedented shutdown across the world has hindered the movement greatly. Initially, containers were not moving out of China, as there was no one to unload them at the docks, industry executives say. This led to a pile-up of demand for containers from Indian exporters. Now when China is showing signs of revival, Indian ports are facing a lockdown. The bottom line, loading of cargo continues to be a problem.

The situation in India is better than in large parts of Europe and the United States, where the virus has spread aggressively. Even in the best-case scenario, the Western nations will take time to spring back to normal.
Sectors like textile that account for 10% of India’s exports could see a major decline in revenue, as demand will fall in China, the US and Europe, industry executives say.

Governor of NY Inspires State Citizens & Americans at Large

Yet, amid all of the turmoil, New York’s Governor Andrew Cuomo offers inspiration to the State, and the United States at large.

“And we’re going to get through it because we are New York, and because we’ve dealt with a lot of things, and because we are smart. You have to be smart to make it in New York. And we are resourceful, and we are showing how resourceful we are. And because we are united, and when you are united, there is nothing you can’t do. And because we are New York tough. We are tough. You have to be tough. This place makes you tough. But it makes you tough in a good way. We’re going to make it because I love New York, and I love New York because New York loves you.
“New York loves all of you. Black and white and brown and Asian and short and tall and gay and straight. New York loves everyone. That’s why I love New York. It always has, it always will. And at the end of the day, my friends, even if it is a long day, and this is a long day, love wins. Always. And it will win again through this virus.”

Inspiring words for difficult times.

#WereAllInThisTogether #FlattenTheCurve

The post To Freeze or Not to Freeze – Global Ports first appeared on The SPL Group.

The post To Freeze or Not to Freeze – Global Ports appeared first on The SPL Group.

In Times of Chaos, the American Logistics Industry Steps Up!

Leon Sakkal — Thu, 19 Mar 2020 19:16:49 +0000

In Times of Chaos, The American Logistics Industry Steps Up!

Leon Sakkal

Marketing, SPL Group

Share!

Whether it was the NBA suspending its season, Tom Hanks being diagnosed with the Corona Virus, or Donald Trump’s March 11 primetime address to the nation, the reality seemed to set in for everyone last week.

Indeed, the world seems to have been thrown into turmoil. With a bear market in equities, an all-out price war in oil, and the possibility of a global recession, it is more important than ever to manage risk. But, the logistics professionals, shippers, warehouse operators, dispatchers, brokers, and most importantly, truck drivers have stepped up to provide an orchestrated effort to ensure the safety and wellbeing of our country.

If you have been crushed by the freight rate volatility, consider having the shipping experts at The SPL Group manage your logistics.

This week, the heroic efforts of the American trucking and logistics industry should be obvious to anyone that has seen the empty shelves at their local market – only to come back the next day and find them filled again.

We at The SPL Group, have been taking the spread of COVID-19 very seriously, monitoring its impact on cargo flows, and analyzing economic data throughout Asia, the Middle East, Europe, and the United States. For us, this is a labor of love. We are logistics professionals, and take great pride in the efforts of our industry right now. Notice how the freight industry is the always-responder; involved in relief, recovery, and replenishment efforts throughout natural disasters, weather emergencies, and now the Coronavirus Pandemic.

We urge all of our clients and readers to take precautionary measures over the next few weeks. While exercising caution, The SPL Group will continue to stay true to our mission of providing the latest information and context about the market, shipping trends, and of course, the impact of COVID-19 on the global Shipping Industry. We recognize that with the new work-from-home environments taking hold across the industry, logistics professionals are going to want to be engaged and informed. Follow us for the latest updates.

Learn how The SPL Group can help you navigate through this difficult time. We can help you lock in rates that will not hike in a black swan event.

Of course, our team is always looking for interesting stories to tell and would love to get your perspective! Feel free to reach out and share stories of things unfolding on the ground, good or bad. Hopefully, over the next few months, we will get to write many accounts of the triumph made by the logistics and supply-chain industry of America, and across the world.

The SPL Group now offers Corporate Management. Have a senior SPL representative manage your shipping & logistics. We know shipping!

The post In Times of Chaos, the American Logistics Industry Steps Up! first appeared on The SPL Group.

The post In Times of Chaos, the American Logistics Industry Steps Up! appeared first on The SPL Group.

How is the Coronavirus Affecting Shipping?

Leon Sakkal — Thu, 12 Mar 2020 10:45:04 +0000

How is the Coronavirus Affecting Shipping?

Leon Sakkal

Marketing, SPL Group

Share!

Shipping is the life blood of the global economy and without it, the bulk transport of raw materials and the import/export of affordable food and manufactured goods would simply not be possible. But, since the Coronavirus outbreak, the shipping industry has been rocked to say the least. As a result, Global trade suffers terribly.With a reduced Chinese labor force, Global trade has been shaken to its core these past few weeks.

Here is what we know:

Several airlines – including American, United, British Airways, and others – have suspended all service to and from China. Others are reducing flights to China by up to 50% through March.

Learn how The SPL Group can help you navigate through this difficult time. We can help you lock in rates that will not hike in a black swan event.

Unfortunately, further suspensions of scheduled flights are expected as the Coronavirus continues to run its course. The supply contraction will likely cause unpredictable rates, reduced air freight capacity, and delays. This alone will likely the prices of air freight.

Global Mail Slowdown

The USPS (United States Postal Service) has informed its counterparts in other countries that it is “experiencing significant difficulties” getting letters, parcels, and express mail items to China and Hong Kong due to a lack of flights to these areas. As a result, the USPS will no longer accept transit mail to these regions.

Ships in Quarantine

Unlike air freight, ocean freight is usually independent of passenger traffic and accounts for most supply chain shipments.

It’s true. Most of the world’s goods are shipped by sea, but the marine shipping industry is set to take a hit, with more countries likely to put stringent measures in place. Countries such as Singapore and Australia have refused to allow any ship that’s been at a Chinese port in the preceding two weeks into their ports.

The Chines Ports themselves are back to normal activity levels, as workers move cargo that was set to be shipped after the Lunar New Year. However, they could be idled again if there are continued supply chain disruptions or reduced demand.

To date, over 100 transpacific ships to North America have been canceled between February and April. And with the threat of Coronavirus reaching the United States, US ports are expecting a 20% drop in cargo.

They do, however, expect to recover in several weeks.

US Customs

US Customs is not planning to hold air or ocean shipments from China due to the Coronavirus. This applies to both courier and postal shipments. So, if you’ve got shipments en route from China, you shouldn’t experience delays at US Customs.

Shipping Management Tips

While so many of us relying on international shipments are frenzied by this mess, it is important to take the time to communicate with anyone that may be affected by any issues you face. Especially your buyers and/or customers. Here are a few tips for managing your shipping during this period:

The SPL Group now offers Corporate Management. Have a senior SPL representative manage your shipping & logistics.
We know shipping!

Be sure to notify clients in case of delays due to the outbreak, especially if you are waiting on production in China.

Communicate directly with your suppliers and warehouses to stay on top of any changes to the current situation – even if they’re not fully operational, most will have customer service teams to assist with your queries.

Use express courier services if you want to avoid delays.

And remember, the shipping experts at The SPL Group are helping thousands of businesses cut their shipping spend by up to 70% – we can help your business too!

The post How is the Coronavirus Affecting Shipping? first appeared on The SPL Group.

The post How is the Coronavirus Affecting Shipping? appeared first on The SPL Group.