SiShips 2023 Shipping Industry Forecast

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We Asked Our Team To Share Their Thoughts About Upcoming Trends

The shipping industry is more intertwined than ever with the daily life of billions around the globe. As a vital player in the world economy, freight forwarding has undergone significant changes and unique challenges in recent years, including fallout from the Covid-19 pandemic, international conflict, and increasing environmental regulations. These developments have had a profound impact on the shipping industry.

We asked the members of the Sheltered International team their impressions on the current state of the shipping industry and possibilities for the future. Read on as we explore the key developments that are shaping the industry and what it all means for businesses, consumers, and the wider global economy.

Have Shipping Profits Peaked?

Shipping profits exceeded all projections in 2022. Companies took this windfall and invested it in improved infrastructure and expanding their air and sea fleets. Profits are now returning to pre-COVID level and “carriers are hungry for business again,” says Andrew Ciccarone.

Derick Mullikin, in charge of Import Operations at Sheltered International, notes “shipping profits peaked during the middle to end of last year. I don’t foresee a rise as many companies increased their imports last year and are now sitting on warehouses full of products. With the cost of living increasing, many consumers aren’t buying what isn’t necessary. In the long run, this could end up hurting many companies as they sit on products that aren’t being sold.” “That should help bring transportation costs down for consumers,” adds Will Moseley, an expert on our team in international freight forwarding.

Import Specialist Kim Cummiskey believes shipping costs seemed “to have reached a bottom. Warehouses have been overstocked reducing the demand on freight, but as the stocks deplete and replenishments are needed, the freight costs will rise again.” Operations Manager Michele Rockwell agrees, “shipping costs will rise as demand increases” throughout the year. It won’t be a surprise if Q3 profits rise to meet the demand for the holiday season.

How Will International Relations Affect Trade?

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Few industries are as dependent on international partnership as shipping and trade. Everything from tariffs imposed on China to Russia’s invasion of Ukraine has an effect on the end price of consumer goods.

“The United States relationship with China will cause a detrimental effect on trade between the two nations,” says Derick Mullikin. “The Section 301 tariffs could add 7.5% to 25% additional duty. The U.S. could very likely add additional sanctions on China, and vice versa.” Andrew Ciccarone has noticed “clients are diversifying their supply chains out of China. [We’ve seen] near-shoring in Mexico, for example. We see a lot of garments moving to India and Bangladesh, some are moving back to the U.S.”

Will Moseley takes a more measured approach. “U.S. and China trade is very unique, the traffic being lopsided with imports to the U.S. far outdistancing exports from the U.S. to China. We both need each other and major changes don’t happen in that [partnership] unless duty rates are revised.”

As far as Ukraine is concerned, immediate fears following the invasion have subsided. “It hasn’t affected U.S. trade nearly as much as it has Europe,” observes Ciccarone.

What New Technology Will Change the Shipping Industry?

New technologies are constantly changing the world around us, but the shipping industry is one that is slow to adopt changes. “Artificial Intelligence could be very beneficial to pick-and-pack warehouses, allowing individuals working to handle more complex issues,” says Michelle Rockwell. Artificial intelligence can be used to improve efficiency, but it is still a long way off from taking over the step-by-step process of facilitating and carrying out international freight forwarding without human supervision.

Green fuels and technologies are also a ways away. “I do not feel we have the infrastructure in place at this time,” says Rockwell. “It will take years for the U.S. to put the infrastructure in place that is needed.” We’ll only see green energy used if it “can be more cost effective than fossil fuels or if it’s mandated by the government,” adds Andrew Ciccarone.

“We’re already seeing airlines, in particular, offer ‘green’ fuel solutions, which add a lot of additional expense,” says Will Moseley. “The end consumer will see a difference with prices, as the cost of shipping will increase,” Derick Mullikin remarks. Due to feasibility and cost, it is unlikely shipping companies will make any change to green fuel anywhere on the horizon.

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March 24, 2023 at 6:35 pm

Postal Codes Required on Shipments from China

New Requirement Comes as International Community Attempts to Prevent Uyghur Forced Labor

Sanctions on Products from Xinjiang Uyghur Autonomous Region

The focus of these sanctions is the Xinjiang Uyghur Autonomous Region, commonly referred to as Xinjiang, in northwest China. Developing this inland region has been a priority for China, transforming the traditionally agricultural region into a manufacturing hub that takes advantage of its rich deposits of minerals and oil. Xinjiang is a major producer of solar panels. The region is also responsible for 86% of Chinese cotton production; over 20% of the world’s cotton comes from Xinjiang.

Multiple countries, including the United States, have accused China of committing genocide against the Uyghur people. The Uyghurs are a majority muslim population living in Xinjiang. They speak their own language and view themselves ethnically linked with Central Asian nations like Mongolia, Uzbekistan, and Turkmenistan. The Uyghurs have committed no crime other than being part of the ethnic minority in China. Data shows that 12% of the adult population of Xinjiang was in a camp or prison between 2017-2018. This translates to 1.2 million Uyghur and Turkic minority adults. Many of those imprisoned are held in forced labor camps and factories. The BBC reported in December 2020 that a half a million people were being forced to pick cotton in these camps.

It is, of course, important to note that China has emphatically denied human rights abuses in Xinjiang.

Importing from Xinjiang Postal Codes

The prohibition on certain imports from Xinjiang is not new. However, all products from China imported to the United States will require a postal code when transmitting an entry for the Manufacturer Party (which can refer to the invoicing party, shipper, exporter or manufacturer).

Shipments will not automatically be detained if they possess a UFPLA zip code warning. Shipments will only receive warnings if they come from the UFPLA region and are presumed to be made with forced labor. The offending products will be excluded upon arrival in the United States by the Port Directory at the port of entry; an exclusion notice will be issued to the importer.

What the Uyghur Forced Labor Prevention Act Means For Businesses

The United States has made it clear it plans to sanction more companies in China that continue to be associated with forced labor. “One of our highest priorities for 2023 is to add additional entities to that list,” said Robert Silvers, DHS undersecretary for strategy, policy and plans. The Department of Homeland Security is also focused on convincing other countries to adopt similar enforcement plans. “We are very aware based on credible reporting that there’s a significant number of companies that are operating in Xinjiang that are engaging in these abhorrent practices, and we want to name them, and we want to ensure that their goods do not come into this country.”

The postal codes and companies that trigger warnings for the UFLPA is likely to expand over the coming months. However, Silvers indicated that it is possible for companies to remove themselves from the banned list, if they are able to prove that they are no longer engaging in practices that violate the UFLPA.

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March 1, 2023 at 8:00 am

The Importance of Power of Attorney for Freight Forwarding

Understanding Legal Requirements for US Customs

One of the most common questions we have been hearing lately is “Why do I need to give my customs broker Power of Attorney?” This is a fair question and it can sometimes feel like another case of bureaucratic red tape when establishing Power of Attorney (POA). However, when it comes to US Customs, you always want to make sure you are following the letter of the law. Establishing POA is not only required by law, it enables your customs broker to make sure all aspects of the customs entry process are legal.

You might have heard of POA regarding personal decisions, such as giving a family member or close confidant control over financial or medical choices. The concept with customs brokers is similar; permission for your customs broker to represent your interests when dealing with imports and/or exports.

The answer to “Why” is simple: customs brokers are licensed by Customs and Border Protection (CBP). Licensed brokers, such as Sheltered International, have passed exams and are incredibly knowledgeable about sometimes obtuse or obscure freight forwarding regulations. Giving your custom broker POA might include, but is not limited to, the ability to endorse, sign or declare requests or delivery or withdrawal, collect drawbacks, act as a grantor of import bonds, and, in general, transact customer business.

Amended Laws from Customs and Border Protection

The National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA), an organization that tracks legislative and regulatory issues for over 100,000 international trade workers, recently highlighted the importance of a current POA. As of December 19th, 2023 when 19 CFR 111.36(c)(3) entered into effect, “a customs broker must execute a power of attorney (POA) directly with an importer of record (IOR) or drawback claimant (client) and not through a freight forwarder or other third party in order to transact customs business on behalf of the client” (emphasis ours).

Using Power of Attorney to Create a More Efficient Workflow

It is understandable to misinterpret POA as unnecessary. Some business owners might believe in the efficiency of communicating directly with their customers and not wanting to bring in a third-party. However, the third-party in this instance is one with expertise in the field and licensed standing will speed up the process and make sure that your business will not have to pay unexpected fines.

While it may seem like a hassle or roadblock at the time, establishing POA only needs to be done once. With your licensed customs broker acting as a go-between, there is not a need for constant back and forth and extra checking on legal items.

Executing Power of Attorney Can Be Simple

Fortunately, Sheltered International has plenty of experience working with the CBP and businesses of all sizes. It typically does not take more than a few minutes to satisfy all of the paperwork and legal requirements for POA. We make it simple for you; POA can be accomplished via PDF or by logging into the SiShips online portal.

It is even possible to sign a non-resident POA. Businesses located outside of the United States just need to have two company officers with ID sign the requisite forms.

While establishing POA is vital for conducting imports and exports business, it is not complex or burdensome. Remember that POA gives Sheltered International the ability to serve in your best interests as your freight forwarding partner.

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January 24, 2023 at 2:59 pm

Excess Inventory Slows Global Demand

Quiet Lunar New Year in Store for Shippers

Inflation and the possibility of a recession are leading to excess inventory. Demand for products of all kinds surged since the start of Covid in March 2020. Buyers could not keep stores stocked. However, Q4 2022 indicated the historical demand we have seen recently has come to a stop.

Last year’s Lunar New Year was seen as a return to normal, giving hope for a year of smooth sailing. Unfortunately, thanks to a multitude of factors such as confusion around China’s zero-Covid policy and the largest ground war in Europe since World War II breaking out, the global economy is on even more tenuous ground than before.

Everywhere is faced with a surplus of goods and not enough places to move it.

Slower Sales Leads to Full Warehouses

In a typical year, January can be one of the busiest months for global shippers. There are two reasons why. First, retail locations are looking to restock after a busy holiday season. Second, most—if not all—factories in China close for Lunar New Year celebrations.

Many retailers fell short of their projections and saw significant year-over-year drops. Nordstrom shares fell upon the announcement of contracted net sales during Q4 2022. Profit margins were slim due to a combination of slower sales and then subsequent markdowns to move year-end merchandise. Nordstrom is not alone in these woes. Fellow retailers, like Macy’s and Lululemon, have already warned investors to temper their expectations on earnings reports. Even popular automakers, like Tesla who operate their Gigafactory in Shanghai, missed their projected sales numbers by tens of thousands of vehicles.

The Year of the Rabbit arrived earlier than usual, with festivities beginning on January 21st. Compare this to 2022, when the holiday arrived during the second week of February. With this compressed timeline and depressed sales, there was not enough time in warehouses to clear inventory. Many buyers are reasoning they will be able to restock when factories fully reopen in mid-February.

Inflation Curbing Spending

Shipping containers stacked with excess inventory at port.

The pattern of belt-tightening and slowing sales will continue as long as global economies are rocked by inflation. Unfortunately, economists do not see a quick pathway to limit inflation at the moment.

Biden’s White House and a highly partisan House of Representatives are currently engaged in a standoff on the debt ceiling. Both sides have said they will not budge; Biden cites the current debt was inherited from past congresses and House Republicans are looking to shrink the debt by cutting social benefits and services. In the meantime, Secretary of the Treasury Janet Yellen is deploying all of the tricks possible to stave off the United States faulting on its debt. If the world’s largest economy were unable to cover their debts, it would send shockwaves felt by governments, businesses, and individuals around the world.

Senator Mitch McConnell expressed optimism last week about the situation. He stated, “the important thing to remember is that America must never default on its debt. It never has, and it never will.”

How to Adjust to Excess Inventory

The real mistake would be to see this situation as a complete negative. Softening demand, even during the logistically tricky Lunar New Year, is leading to lower prices for shippers. January and February 2023 are an excellent time to set yourself up for success in the spring and early summer. Blanked shipments indicate the possibility of a recession, but provide an opening for those with operating capital.

It might not be possible to place orders if you are struggling to find adequate warehouse space. However, it is possible to use laws like the Ocean Shipping Reform Act of 2022 to your advantage. Created to ease costs incurred from port congestion, it is possible to avoid detention and demurrage fees for your cargo. Knowing how to navigate these choppy waters can set you and your company on the right course in 2023.

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January 10, 2023 at 5:35 pm

How to Avoid Snags when Shipping Overseas

Tracking Cargo Around the Globe

If a shipping container could talk, it would have more stories than could last a lifetime. These hardy boxes of steel circle the globe many times over. They deliver raw materials and parts to factories. They bring goods from other continents to your local store. Then, they go back and do it all over again.

There are certain unavoidable problems during a journey lasting thousands of miles. However, with the help of an experienced team, you will never fall far off track. With fast, real-time data tracking through SiShips, you can rest easy that your cargo is where it needs to be. And, in the unlikely and sometimes unbelievable event something does go wrong, we can help you find the best solution immediately.

Can Items Be Lost when Shipping Overseas?

Yes. It is a small number, but ships will lose containers in transit.

The Atlantic Ocean covers over 41 million square miles. The Pacific Ocean is even bigger at almost 64 million square miles. Not to mention, the Pacific Ocean is over 36,000 feet deep. (That’s the equivalent of 120 Statue of Liberties or 36 Eiffel Towers). The point is, these things are big and they are affected by infinite factors.

Ships traveling from China to the port of Long Beach, and other west coast ports, can be caught in unexpected storms. Container ships are engineered with this in mind, but there are extreme weather conditions that make cargo loss possible. Such was the case with the Tokio Express, which lost sixty-two containers containing children’s toys off the coast of England in 1997. The memory of this incident is still fresh in the minds of locals who continue to find Lego dragons washed ashore 25 years later.

SiShips provides managed transportation for all of our clients, so they can track the location of their cargo, along with providing the best insurance options, at all times.

Do People Use Shipping Containers for Drug Trafficking?

Yes. Drug cartels transport illegal goods across the ocean on container ships.

During a recent expose on the Mediterranean Shipping Company (MSC), journalists Lauren Etter and Michael Riley outlined the issue:

“Although there are international security requirements for shipping companies, customs and law enforcement officials have little power to hold the companies accountable. All of that has allowed the shipping industry, the primary engine of globalization, to escape major consequences as it has become increasingly entangled in drug trafficking.”

Over several decades, the Balkan Cartel had allegedly systematically infiltrated MSC. They had so many of their members employed by the shipping giant that they could run multiple crews simultaneously. The crews would work together to load literal tons of drugs onto the ship while at sea and then later off load it closer to their destination. In 2019, agents raided the Gayane, one of MSC’s ships, when it was at port in Philadelphia. This resulted in one of the largest drug seizures ever and raised eyebrows that MSC was perhaps complicit in the drug trafficking.

MSC pushed back on the reporting by Bloomberg Businessweek in a press release. They emphasized all of the information had been publicly available for three years. MSC reiterated that they were unaware of the drug trafficking through their ships and they were victims, too.

Stories like this are fascinating to read and discuss, but the consequences for legal businesses and everyday people shipping overseas can be blown out of the water. Simply because your legal freight is on the same ship as drugs or another illegal substance does not mean it can be impounded by authorities. Nor does it affect the condition your freight arrives in. In fact, only rarely does a raid by a federal agency delay the delivery of the non-contraband items onboard.

Can Local Port Congestion affect Shipping Overseas?

Yes. In extreme cases, local port congestion can cause a domino effect that delays overseas shipping.

Even people unfamiliar with the shipping industry are aware of the Ever Given, a container ship that became infamous when it blocked the Suez Canal in 2021. After being hit by a strong wind and dust storm, the container ship ran aground in the canal, blocking passage and freezing global shipping logistics. The ship was unstuck after six days, but the aftershocks were felt worldwide for months after.

Similar delays occurred during coronavirus outbreaks in China and union protests in the United States and Canada. These delays can be catastrophic for freight forwarders if they are not handled proactively. SiShips is not immune to the snags that accompany international freight forwarding, but our unique blend of personal expertise and analytics enable us to provide our clients with better solutions, faster.

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December 19, 2022 at 8:00 am

Weakening Shipping Demand Ahead of Chinese New Year

Softening Market Indicates Uncertain Future

The global supply chain continues its trend of surprise and unpredictability. Following a relatively quiet quarter, shipping demand looks to soften even more as the calendar turns to 2023. Historically, the holiday surge continues into January as buyers and shippers try to get ahead before the Chinese New Year festivities.

Late January and early February are always a sensitive time for international business in Asia, because all factories and ports close for two weeks. Employees will travel home to visit family. Even when the factories officially reopen after the holiday, it takes time for production to ramp back up. These anticipated delays usually translate to buyers stocking up in early January. The same was expected this year, especially with shipping times peaking at 110 days from Asia to the United States. However, due to a combination of factors, including inflation contracting the global economy, that is not the case. On the positive side, the weakening shipping demand means prices are falling and shipping times are finally coming down.

Freight Rates Have Fallen Sharply

Industry experts expected a market correction at some point. The shipping industry is cyclical, like all industries. It was only natural that the peak pricing from 2021 would return to normal as the world learned to deal with coronavirus. But nobody anticipated it arriving so soon and so acutely.

Spot rates for 40-foot containers for passage between Hong Kong and Los Angeles are significantly lower year over year in December 2021. In some instances, rates are below the average from 2015. This presents a major shock to the system. With the future murky, this is a rare opportunity for buyers to expand margins before rates rise again.

Covid Still Has a Stranglehold on the Middle Kingdom

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Adding to the calculus is the evolving Covid response in China. The Chinese government finally acquiesced after weeks of protest to relax their “zero-Covid” policy. The irony on the ground is public commerce has come to a standstill in major cities, as citizens brace for an all but certain Covid outbreak. Beijing is described as a ghost town and people are scrambling to prepare themselves for the worst.

The Chinese New Year is a time when streets are filled with revelers, but those celebrations might have to be put on hold if the Covid response is still lacking. Alternatively, factories might face staffing issues during the restart if there is a Covid outbreak during the Lunar New Year festivities.

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Potential for a Price War

Inflation has put a damper on the holiday season in the United States, but 2023 could be a good time to be a buyer. Or, at least, a good time to be importing international goods. There are rumors bubbling of an impending price war between major shipping lines.

Freight forwarders and governments rushed to increase capacity of containers, ports, and more during Covid. Capacity is no longer an issue, with the drop in demand. Major shipping lines will do whatever they can to attract customers. This could also be a year of consolidation with larger players looking to swallow up smaller companies.

“There is a high possibility of an all-out price war,” Christian Roeloffs, co-founder and CEO of Container xChange stated. “With the competitive dynamics in the container shipping and liner industry, I don’t expect especially the big players to hold back, and we do expect prices to come down to almost variable costs.” No need to feel too bad for the shipping lines as a whole, though. They pocketed a reported $122 billion in profits from January to September 2022.

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December 2, 2022 at 2:49 pm

Biden and Congress Intervene to Prevent Rail Strike

Potentially Catastrophic Rail Strike Averted by Bipartisan Cooperation

Some might say Christmas has been saved—others feel like all they’ve got is a lump of coal in their stocking. Rumors of a rail strike have been percolating since this summer, before reaching a fever pitch ahead of a December 9th deadline. At the urging and approval of President Joe Biden, congress acted on Wednesday, November 30th to enshrine previous agreement terms.

Regardless of viewpoint or political affiliation, it is undeniable that a rail strike in the final weeks leading up to the holiday season would have been catastrophic for workers and the economy at large. A rail strike of this magnitude could have cost $2 billion per day. Many pro-labor and progressive factions are disappointed that workers will still not receive paid sick leave. However, already fragile freight lines will march on at a precarious time for the U.S. economy.

What Was the Rail Strike About?

While there were many parts of the contract where railroads and unions did not see eye to eye, the crux of the negotiations was on the point of paid sick leave. Railroad workers did not receive any guaranteed sick leave due to the grueling on-call set up of the current contracts. This meant that it was difficult to schedule doctor’s appointments or even be present at important family and life events. In an era where railroad profits were at an all time high, unions felt unfairly treated by an industry that squeezed wages and was notorious for chronic understaffing.

This has been an ongoing issue for the Biden Administration, including Labor Secretary Marty Walsh, Agriculture Secretary Tom Vilsack, and Transportation Secretary Pete Buttigieg, who have been acting as a middleman between both sides for months. In September, Biden endorsed a plan that included a 24 percent pay increase by 2024. This version of the contract also gave workers an additional paid day off and let them attend medical appointments without penalty. Several unions actually approves this version of the deal. However, the SMART Transportation Division, the Brotherhood of Railroad Signalmen, the Brotherhood of Maintenance of Way Employes Division and the International Brotherhood of Boilermakers voted the contract down. Due to the structure of the contract all twelve railroad unions needed to approve for it to pass.

Biden Administration Felt It Was Imperative to Step In

President Biden surprised some supporters and pundits with his decision. “As a proud pro-labor President, I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” Biden shared in a statement. “But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal.”

Even if both sides agreed to meet at the negotiating table, it would have been impossible to ratify an agreement in time for the December 9th deadline. After the midterm elections, Biden was concerned about an even less labor friendly deal being put forward in January. Ultimately, two bills passed the House of Representatives. The first enforces the deal put forward in September and the second would add an additional seven paid sick leave days. The Senate voted on Thursday, December 1st to uphold the original deal, but struck down the additional paid sick leave.

The Biden Administration reasoned that fallout from the intervention from unions and progressive members of Congress would be limited. This has proven to be correct so far. Unions and labor supporters like Senator Bernie Sanders are directing their anger towards “robber baron railroads”, instead of the president.

Significance of Preventing a Rail Strike

Neither the railroads or the unions are particularly happy with the outcome. Even so, both parties got a little of what they wanted and the economy can continue to chug on. Prices, already high from inflation, would have been certain to jump even higher. Certain products like necessary medical and clean drinking water equipment were even able to get through.

40% of all freight in the United States travels through the railroad system. It is effectively the heart of the domestic supply chain. The entire economy might have come to a complete halt if the government had not stepped in.

How SiShips Gives You the Advantage

Sheltered International combines expertise with state of the art software to bring you quality domestic and international shipping solutions. SiShips puts the shipper in control, offering efficient and cost effective ways to ship your product.

To learn more about managed transportation with SiShips, or to view a demo of our software, contact us today.

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November 22, 2022 at 6:39 pm

Dispatch from MJBizCon 2022

SiShips was on the Ground for MJBizCon 2022, the Biggest Professional Cannabis Event of the Year

Cannabis is moving fast, and SiShips is helping it move even faster. As domestic and international laws evolve, hemp and cannabis is quickly becoming one of the quickest growing sectors in the agricultural industry.

SiShips has been working with growers to import supplies like grow lights and processing machines over the last few years. Then, following the Agriculture Improvement Act of 2018 we were able to begin shipping hemp and its derivatives.

Much of our business at SiShips comes from interacting virtually with our clients, so it’s always a pleasure to meet the people using our services in person. With tens of thousands of attendees and dozens of speakers spread across four days in Las Vegas, MJBizCon 2022 provided the perfect opportunity to expand relationships in the hemp community.

Changing Hemp Regulations

The legality of cannabis is a major political issue being debated in the United States and the rest of the world. You’ve probably seen discussion of legalizing hemp or maurijuana on the news. As of writing, recreational use of cannabis has been legalized in 21 states and Washington, D.C.; 16 states have legalized medical use of cannabis. Internationally, it is legal to use cannabis recreationally in Canada, Georgia, Malta, Mexico, South Africa, Thailand, and Uruguay.

At the moment, it is legal to ship hemp products that contain no more than .03% THC internationally. Lobbyists hope this limit will be raised in the near future. As more states work to legalize maurijuana domestically, in addition to hemp, it is certain the international regulations will follow.

What Happened at MJBizCon 2022

MJBizCon 2022 sounds like a dream for cannabis enthusiasts—320,000 square feet of exposition space, more than 1,400 exhibitors, and sessions with celebrities like comedian Jim Belushi and football stars Ricky Williams and Calvin Johnson, Jr.—but, it’s more than fun and games. This event is exclusively for cannabis professionals.

We were able to walk the floor of the Las Vegas Convention Center and get up close and personal industry insiders. Just like Gen Con 2022, MJBizCon 2022 let us connect with current and future clients. Also, we got to see in person some of the advanced equipment we can help our clients ship. Getting a feel for the size and heft of the machines enables us to assist our clients even better.

All in all, it was a great week to do business in Las Vegas and have a little fun while we were at it. cannabis mjbizcon 2022 las vegas professional experiences networking greenhouse grow lights equipment

Looking at the Future of Cannabis

Just this month, November 2022, five states voted on amendments to legalize marijuana in all forms. While the amendments only passed in Maryland and Missouri, the future is bright for the cannabis industry. There has been a massive groundswell for legalization over the last decade, since Colorado became the first state for recreational maurijuana in 2012. Legalization has led to big profit returns for vendors who were able to capitalize early.

Next year, lawmakers look to improve the hemp industry with a new 2023 farm bill. The incredible demand for CBD-based products will drive these changes. The United States Department of Agriculture estimated the hemp industry to be worth over $800 million. (And that’s with the current restrictions!)

SiShips will continue to pay close attention to the hemp industry and other major growth sectors. We make sure we are up to date with the latest shipping regulations so we can provide the best service to our clients, giving them an advantage over their competitors.

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To learn more about managed transportation with SiShips, or to view a demo of our software, contact us today.

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November 1, 2022 at 8:00 am

SiShips Launches New Mobile App

Exciting New Way to Manage Freight Forwarding Available on Google Play Store Now

Freight forwarding is officially at your fingertips. Sheltered International is excited to announce that, as of June 27th 2022, our SiShips mobile app is now available on the Google Play store for Android devices. UPDATE (11.01.22) The SiShips mobile tracking and quote tool app is now available on the Apple App Store for iOS devices! Specifically optimized for the iPad, our clients are now able to quote, book and track shipments on all of their mobile devices. At Sheltered International, we are constantly on the lookout for new ways to blend cutting edge technology with personalized shipping expertise. Our new mobile app is just another way that we are putting control back in the hands of you, the shipper.

Mobile App to Combine Information and Efficiency

Our new app is truly the best of both worlds. Sheltered International will maintain our hands-on approach to freight forwarding and combine our personal experience with real-time data tracking—now just a touch away, thanks to the SiShips app. Our team is fully accessible and responsive, but without the clunky delay of a barrage of emails and endless phone calls.

Whether your cargo is traveling through the air, across the ocean, by rail or by truck, you will be able to survey its location with near instantaneous updates. You can now manually check these updates on the app, or turn on Push Notifications for even more convenience.

Current clients will be able to use their login credentials to get started immediately; new clients looking to get started can get in touch with us to begin using our new services as soon as possible.

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Part of Tradition of Embracing Technology at Sheltered International

Our new mobile app is the next step in the evolution of freight forwarding and Sheltered International remains enthusiastic about our role shepherding the industry towards the modern era. Within the last twelve months, Sheltered International has added around the clock rail tracking and managed transportation to our extensive portfolio of freight forwarding services. All of our services, including rail tracking and managed transportation, will be accessible on the app.

The mobile app will exist alongside our desktop software with continual updates. All new services that Sheltered International will roll out to clients in the future will also be available on the app.

How SiShips Gives You the Advantage

Sheltered International combines expertise with state of the art desktop and mobile software to bring you the highest quality domestic and international shipping solutions. With the world constantly changing, SiShips puts the shipper in control, offering efficient and cost effective ways to ship your product.

To learn more about managed transportation with SiShips, or to view a demo of our software and new mobile app, contact us today.

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October 10, 2022 at 4:19 pm

Ocean Carrier vs. Drayage Carrier Fees

How Port Congestion and Port Fees Affect You

No one likes port congestion. It causes supply chain delays and missed deadlines, but, worst of all, port congestion can lead to additional ocean carrier and drayage carrier fees.

Ocean carriers refer to the vessel and vessel operators physically transporting goods between international ports. The next step in the supply chain are drayage carriers, which transport goods from ports to their destination. Drayage often refers to trucking and short distances known as “the first mile” on an export or “the last mile” on an import. Unfortunately, both ocean carriers and drayage carriers charge extra fees for delays, wait times, and more.

The federal government is looking to help alleviate the pressure of some of these charges with the passage of the Ocean Shipping Reform Act of 2022 (OSRA 2022). This bipartisan law is designed to help American importers and exporters, especially agricultural exporters, save on costs. The Ocean Shipping Reform Act of 2022 applies to ocean carrier fees, so it is important to understand the distinction between ocean carrier and drayage carrier fees. trucking detention demurrage port congestion

Charges from the Ocean Carrier

There are several key terms to know when discussing charges and fees from an ocean carrier.

Per diem, also known as detention, is the fee from an ocean carrier for each day past the number of “free” days a container can be away from port. Ocean carriers charge per diem/detention fees as an incentive for customers to return their shipping containers as quickly as possible, so the containers can be used again.

The reverse of detention is demurrage. This refers to the fee assessed by the terminal if your cargo remains at port past the Last Free Day.

The Last Free Day is the last day of a predetermined period of free storage time in which the goods can be picked up by a drayage carrier before incurring a demurrage fee. Free days depend on your contract and type of drayage carrier (rail, truck, or air), but are typically 2-3 days.

Charges from the Drayage Carrier

Likewise, here are a few definitions to be aware of when looking over drayage carrier fees.

A pre-pull is when a container is picked up from the port and stored at a different location, instead of being delivered immediately. Pre-pulls are used when free days at the port will run out. They are less expensive than costly demurrage fees.

Wait time is an hourly charge, also known as a trucking wait fee, for each hour it takes to the full container to be updated or unloaded on the truck. Most trucking companies and drivers will allow a small amount of free wait time before charging for additional time.

As you can see by now, a seamless workflow between ocean carriers and drayage carriers is key to keeping costs down. That’s where a managed transportation expert like SiShips can make a huge difference on your bottom line.

international port ocean container shipping news osra ocean shipping reform act 2022

Another common set of fees assessed by drayage carriers have to do with the chassis. Chassis are the specialized trailers that are used by trucks to transport ocean containers on the road. Drayage carriers charge a rental fee for these chassis, and an additional fee known as a chassis split, if the truck driver must go to an extra location to pick up a chassis before arriving to pick up the container from the port.

How the Ocean Shipping Reform Act of 2022 Can Help You

Ocean carrier and drayage charges are linked and have a large effect on each other. However, they are separate fees from separate entities and, while logistically they affect each other, the charges are not related.

President Biden signed OSRA 2022 into law on June 16, 2022. This law created new oversight for the Federal Maritime Commission to address unfair charges and unreasonable denial of American exports. In short, OSRA 2022 was made to combat detention and demurrage charges incurred due to port congestion and shipping uncertainty. Additionally, California Gavin Newsom signed AB 2406 into law on September 30, 2022. AB 2406 will go into effect on January 1, 2023. This law will prevent detention and demurrage fees due to circumstances beyond the control of drayage carriers. Reactions to the California law are mixed. Truckers and cargo owners are pleased with the law, but the terminals are concerned about loopholes in the nuance of the law.

However, it is clear that federal and state level governments are taking upheaval in the shipping industry seriously and are looking for both short and long term solutions.

How SiShips Gives You the Advantage

To learn more about managed transportation with SiShips, or to view a demo of our software, contact us today.

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