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Why Companies use Foreign-Trade Zones

All of the benefits the Foreign-Trade Zones program can offer manufacturers and processors located in the United States are too numerous to list here. But, there a few main benefits that account for most of the companies that use the Zones program. 

IATA: Air freight will grow 4.1 percent annually through 2018

Though the market hasn't declined, the freight sector averaged growth of under 1 percent each year since 2011 The expected compound annual growth over 4 percent is a boon for the industry, IATA CEO Tony Tyler said, but there are plenty of risks ahead for carriers. "It is welcome to see a forecast for a return to growth for the air cargo sector after several years in the doldrums," Tyler said. "Nevertheless, despite the positive picture, the overall risks to the economic outlook, and therefore to air freight, remain towards the downside," Tyler said.

US shippers brace for sharper intermodal rates hikes

Analysts will pepper Class I railroad executives in the coming weeks with questions on pricing during upcoming third-quarter earnings conference calls. Although the rail executives will likely be coy on details, a new survey provides insight in just how railroads plan to hike intermodal rates in the coming 12 months.

Drivers, regulations top list of critical trucking issues

For the second straight year, ATRI put truck driver hours of service rules at the top of its list of the 10 most critical issues facing the trucking industry, followed by the driver shortage. The driver-behavior-focused federal Compliance, Safety, Accountability or CSA program took third place on the 2014 list of critical trucking issues, followed by truck driver retention. The economy, as a critical issue, plummeted to ninth place, after being at the top from 2009 through 2011 and in fourth place last year. That’s not surprising, perhaps, as stronger economic growth this year…

Carriers likely to pass low-sulfur fuel costs onto shippers

Some bad news for shippers: Switching to low-sulfur fuel on a global basis in 2020 could cost the container shipping industry up to $100 billion per year, which will likely cause container freight rates to rise as carriers attempt to pass the costs onto beneficial cargo owners.

GM executive: Supply chain ‘stretching the boundaries’

Torrid U.S. auto sales are "stretching the boundaries" of General Motors' supply chain, the company's top purchasing executive said today. At an annual gathering in Detroit for 700 suppliers, GM purchasing boss Grace Lieblein said the industry's supply base will likely need to add capacity to keep up with demand. "We just have to be cautious and strategic abouthow we add that capacity and not move too fast," she said. Americans are buying new vehicles at the highest annual rate since 2006, according to a recent Morgan Stanley report. GM already approved a third shift in…

Supply Chain Solutions delivers the first Nacelle to the Big Turtle Wind Farm

The first Nacelle arrives to support DTE Energy’s contract of 20 megawatts (MW) of renewable energy from a subsidiary of Heritage Sustainable Energy, a Michigan wind energy producer. The energy produced for DTE Energy under the 20-year contract will come from Big Turtle Wind Farm LLC, which will cover 2,800 acres in Rubicon Township in Huron County in Michigan’s Thumb area. DTE Energy will purchase all of the power produced at the wind park, expected to be operational by late 2014. The 20 megawatts is enough to power about 9,000 homes. The wind park will comprise a minimum of 50…

Congestion at major ports is continuing to increase

Congestion at major ports is continuing to increase, in some cases adding five days to turn times.  This is due in part to increased peak season import volumes.  The ongoing chassis shortage is contributing to the delay.   Many ocean carriers are no longer providing chassis.   Chassis leasing companies and chassis pools are often controlling the chassis now and the supply is not meeting the demand.  There are also larger container ships causing higher volume than the container terminals and surface transportation can efficiently handle.  These mega ships are capable of handling more…