Ocean Freight
Q1 2021 Ocean Summary Pt. 2
Solutions for Cargo into Mexico (Juarez)
Problem Statement
With US West Coast ports being congested on dock/off dock rail is currently experiencing dwell times of 7-14 days before moving onto rail:
Benefits/ Solutions:
• JUSDA transloads in major ports (Manzanillo, Houston and Los Angeles)
• JUSDA will reduce dwell time by 5-10 days
• JUSDA will consolidate into 53’DV to increase utilization of equipment and increase savings by 15%
• JUSDA will perform the Previo en Origen, at transload gateways saving importers a second cross dock expense. Average savings ~20%.
Solutions for Cargo into USWC
Problem Statement: with US West Coast Ports being congested and dwell times at ports taking 10-20 days. JUSDA recommends:
Solutions:
• Houston AWS service may be a longer transit time however, JUSDA is experiencing dewell times of 2-4 days
• Utilization of Premium services from carriers may cost more however when factoring in must arrive by dates and retailer penalties, the cost outweigh the risk
• Request of Top Stowage from carriers, allows quicker offloading
• Request for 45’HC Equipment which are loaded on top of vessel
Solutions for Cargo into Chicago
Problem Statement: Carriers are more inclined to accept CY/CY cargo instead of CY/R cargo while there are equipment shortages.
Solutions:
• Priority 1: Transloading via Vancouver, Canada
• Priority2: Transloading via Houston, Texas
• Priority3: Transloading via Los Angeles, CA
IPI VERSUS TRANSLOADING
Q: Why should I consider Transloading versus IPI
A: Transloading has transformed over the last decade to be a robust product. The challenge faced traditionally with transloading has been around keeping ASN/ Serial numbers intact to match up with GR’s (Good Receipts). With JUSDA’s solution we can receive inbound ASN’s, scan, optimize and remanifest ASN’s into full optimized trailers to sync with your company’s ERP systems.
Q: What Cost savings can I see?
A: JUSDA has transloading hubs located in Los Angeles, Vancouver, Houston and Savannah. Given the congestion with USWC ports JUSDA has been able to help clients recognize savings of 15% when transloading over our hubs.
Q: How to get started?
A: Reach out to your JUSDA account manager for pricing.
THEMES FOR 2021
- Blending of carrier and NVO services:
o CMA-CGM/APL & CEVA o Maersk & Maersk Logistics o Matson & Matson Logistics o Evergreen and RTW o Yang Ming and YES Logistics o Hyundai
- Instead of looking at carrier look at alliances. Regardless of which carrier you sign with, if you are in the same alliance you are on the same boat.
- Carriers may only allow for 50% allocation of named account rates in 2021-2022 S/C.
- Remember INCOterms 2020 are new.
Carrier Strategy for 2021 Service Contract
Car – This month again we will continue to stress the 2016 GF Plan in Asia and how it relates to the global GF Plan.
Jack Chang
- JUSDA America Managing Director
