Life in the slow lane

America’s economy remains the world’s largest; its citizens are among the world’s richest. The government is not constitutionally opposed to grand public works. The country stitched its continental expanse together through two centuries of ambitious earthmoving. Almost from the beginning of the republic the federal government encouraged the building of critical canals and roadways. In the 19th century Congress provided funding for a transcontinental railway linking the east and west coasts. And between 1956 and 1992 America constructed the interstate system, among the largest public-works projects in history, which criss-crossed the continent with nearly 50,000 miles of motorways.

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But modern America is stingier. Total public spending on transport and water infrastructure has fallen steadily since the 1960s and now stands at 2.4% of GDP. Europe, by contrast, invests 5% of GDP in its infrastructure, while China is racing into the future at 9%. America’s spending as a share of GDP has not come close to European levels for over 50 years. Over that time funds for both capital investments and operations and maintenance have steadily dropped (see chart 2).

Although America still builds roads with enthusiasm, according to the OECD’s International Transport Forum, it spends considerably less than Europe on maintaining them. In 2006 America spent more than twice as much per person as Britain on new construction; but Britain spent 23% more per person maintaining its roads.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

U.S. WEST COAST Rate declines

To U.S. WEST COAST base ports*

Rate declines: The April 15 U.S. West Coast base port average spot rate was $1,639 per FEU, off 1.1 percent or $18 from the previous index, down 20 percent or $411 below the same week last year, but $208 or 14.5 percent above the base index of $1,431.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Urgent Alert...

Since fuel prices increasing sharply, but the trucking fee could not be adjusted, it caused all the trucking companies to launch strike action in Shanghai on Apr.20. The initial strike period will be lasting 7 days. Trucking company try to ask for government help. Now the government has stepped into  this event and negotiating with trucking companies. Due to the strike happens, Shanghai port is facing serious congestion, it might cause containers could not on board timely. Pls kindly aware of this situation. We deeply regret of the inconveniences that the situation might have caused. Further developments and updates will be broadcasted accordingly.

 

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

 

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8 Ways to Beat the High Cost of Shipping

One area small businesses are hit hardest by increased gas prices is their shipping operations. Because of the large volume of gasoline carriers consume, they have had to institute higher fuel surcharges for their deliveries. These increased rates affect not only what small businesses pay to have something shipped, but also what they pay to have something delivered.

Since every business has to ship, just eliminating the cost is impossible. We recommends the following cost-saving shipping tips, from packing to measuring, for every small business:

1. Use the right filler – Packing too much, too little or with the wrong materials can lead to higher charges, along with unnecessary delays or costly damage. Shipping smaller, denser packages is less costly as larger and bigger packages take up valuable space on trucks. Shippers should be mindful of the type and amount of filler they use, as it can add weight or jeopardize protection.

2. Measure twice, ship once – All packages should be measured accurately, as declaring the wrong dimensions to a carrier will lead to added charges. A simple formula to measure dimensions for common domestic air and ground shipments is Length x Width x Height / 194. Getting measurements right from the start helps shippers avoid delays and incurred fees. A resourceful tactic is to use boxes two inches under the next size minimum to avoid a higher measurement charge since the box bulges when stacked.

3. Ship packages as a family When shipping multiple lightweight packages to the same address, place them into one box to avoid each individual fuel surcharge and any additional charges for shipping more than one package. Some carriers offer customers special services that allow individual packages to be aggregated into one shipment.

4. Watch the weight – Shippers can avoid additional shipping costs by keeping the weight of their packages under control. Declaring the wrong weight can incur fees much like the wrong measurements. Also, many carriers have weight limits that cannot be exceeded without an additional charge.

5. Compare costs – Shopping for the right rates should be a routine for every shipper. Rates can fluctuate for each carrier, especially during times of rising gas prices. For businesses shipping freight, there are online transportation management systems, our is Rhythm, and much like Expedia list current rates and service levels for carriers. Customers select the service and carrier that fits their needs and budget.

6. Print and track electronically – Shippers can save money and time by using various electronic systems featured by some carriers. Labels can be quickly and accurately printed to avoid any handwritten mistakes that lead to additional charges later.

7. Know when to insure While it’s always better to be safe than sorry, many shipments can do without extra insurance coverage. If a business is shipping durable goods like steel, chances are very low that it will be damaged. However, anything fragile or of high value should always be insured, which can save money in case of accidents.

8. Arrange proper pickup service Small businesses can save money by choosing the most cost-effective pickup service based on their shipping needs.

 

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

U.S. Customs Reform Initiatives

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Bersin: Customs reforms to include brokers

Discussions are underway within U.S. Customs and Border Protection about how to simplify the entry process for foreign-made goods, expedite release for trusted shippers and possibly allow quarterly payments of duties and fees, Commissioner Alan Bersin said April 5.

Along with those major reforms, he said he wants to rewrite the section of the U.S. code that lays out the licensing requirements, duties and responsibilities of customs brokers, which have not been updated in more than 30 years.

In a 70-minute address to the National Customs Brokers and Forwarders Association of America’s annual conference in Phoenix, Bersin acknowledged customs brokers might have trepidation about changes in how they transact customs business on behalf of importers, but reassured them that improving the process for importers would also benefit brokers in the long term.
Global trade has changed dramatically during the past two decades and broker rules need to keep up with the new business environment, he added.

Preview of CBP’s reform initiative
Reinventing border security
“Looking at entire mission”
Matter of trust
Border Wares
U.S. agencies team up on import safety
CBP’s MBA isn’t a college degree

CBP cannot improve the efficiency of cross-border processing “without your alliance and your insight. I need you to tell us what are the three-dozen ridiculous rules that we insist on that need to be broken in order to move the commerce through the ports,” Bersin said.
A possible new role for brokers, he said, might be the trusted agent who vouches for the security bona fides of smaller shippers who share an ocean container, but are frozen out of the Customs-Trade Partnership Against Terrorism because they don’t rent the entire box for a trip.
C-TPAT is a voluntary program for importers and their suppliers that leads to fewer cargo inspections and other types of faster clearance.
CBP has had preliminary discussions about moving to a quarterly payment process, another official explained. The system allows importers that use the Automated Commercial Environment to pay fees on a monthly basis rather than for each shipment on a daily basis.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Global Trade Risk Alert: International Shippers Beware!

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Here’s a reason  to be careful when contracting with  smaller shipping lines below. TCC was a carrier that really made a name for themselves middle of 2010 into 2011 by publishing and promoting very low rates..

Just be aware that , TCC (The Containership Company) shut down operations and filed bankruptcy last Friday morning.  However, we have heard that TCC is still sending announcements from their sales teams to their customers that they are still able to accept new bookings.  We do not wish to use TCC for any future bookings.  It seems Horizon Lines is in financial and public relations trouble as well.  Some freight forwarders are getting “positive” reports directly from sales teams @ Horizon Lines reassuring them that their operation is perfectly sound and secure.   I would not rely on Horizon Lines to give you anything but a positive report.  They can’t afford to tell their customers anything different.  If they lose their customers, they can shut down without warning.

We are not recommending that shippers book any shipments on TCC & Horizon equipment and vessels.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

House Bill 4169..

Hello Everyone:

 

HB 4169 sponsored by Rep. Kurt Heise (R-Plymouth) would exempt the amounts paid to a subcontractor to haul freight for the logistics industry from the gross receipts portion of the Michigan Business Tax (MBT).  This is the same legislation that was almost passed last year.  As you know, the Snyder Administration wants a complete overhaul of the MBT and so, this legislation may or may not be necessary.  Nevertheless, it has been scheduled to receive a hearing before the Tax Policy Committee on Wednesday.  I will submit a card in support of the legislation on behalf of the IWLA. 

 

I will keep you updated.

 

 

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

 

 

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3PL Selection Process

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OUTSOURCING logistics functions to third-party logistics (3PL) has been a source of

competitive advantage and a common practice by most companies. The majority of

studies in this field are of exploratory type. This paper presents a preliminary analysis on

3PL selection and evaluation. This selection is very complex and depends on several

conflicting factors, which have changed significantly in recent years. Moreover, 3PL have

currently diversified by offering various services and by ensuring various activities. As for

selection methods of 3PL, they range from simple analytical techniques to multi-criteria

methods.

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

Outsourcing By Small Shippers Fueling Growth Among Brokerage Firms, Freight Forwarders

As we have seen at Supply Chain Solutions, Inc., outsourcing of transportation services by smaller shippers is fueling revenue growth for brokerage firms and forwarders, while increasing the clout of many third-party logistics firms, industry observers said.

“We believe the next decade will prove to be a golden age for [logistics companies],” said Nathan Brochmann, a senior equity research analyst at William Blair & Co. in Chicago. “The industry should take share away from asset-based carriers as shippers seek low-cost solutions and greater assistance with maximizing their supply chains.”

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand