Image courtesy of Tabrez Syed

What Countries And Materials Might Be Affected

The first week of President Donald J. Trump’s second term has been marked by an avalanche of executive action from the bully pulpit. Trump is looking to make an impact as quickly as possible issuing a flurry of 75, and counting, memorandums, proclamations, and executive orders. The focus is wide-ranging, affecting everything from immigration policy to medical research, as well as socially focused issues such as gender and diversity programs. 

Notably absent from any official documents are the tariffs that Trump made a cornerstone of his campaign. Messaging from the new administration is mixed, with the “Day One” rhetoric removed in favor of February 1st as a new target date for tariff implementation or an even longer delay. It is possible Trump will be lighter on tariffs than expected. The S&P 500, which rose 4% between Election Day and Inauguration Day, has continued to rise each day that goes by without new tariffs.

Colombia Backs Down

Part of the reason for the continued talk, but lack of action, is Trump appears to enjoy the threat of tariffs more than the economic policy itself. 

On Sunday, January 26th, Colombian President Gustavo Petro blocked two U.S. military planes carrying undocumented immigrants from landing. Trump then threatened a 25% tariff on all goods and materials from Colombia in a retaliatory move, with the potential for that number to rise to 50%. This, in turn, led to Petro floating tariffs on U.S. exports. While many Americans consume Colombian oil and coffee, the weight of this was too much for the considerably smaller nation and Petro backed down. A Colombian military plane was sent to San Diego on Monday, January 27th to transport the Colombian citizens that had been deported from the U.S.

Image courtesy of Benoit Debaix

Canada and Mexico Prepare Retaliatory Measures

The tariff tiff with Colombia was a preview of Trump’s intentions with larger countries like Canada and Mexico who he views as treating the U.S. unfairly. Economists are skeptical that Trump will impose his stated tariffs on these allies, comparing it to self-inflicted wound. “The potential for such sizable economic impacts ought to act as enough of a deterrent that Trump will not end up implementing these higher tariffs,” said Matthew Martin, senior U.S. economist with Oxford Economics. For an example of that size, Colombia accounts for 0.5% of U.S. imports; Canada and Mexico combine for 30%.

Chrystia Freeland, a candidate for Prime Minister of Canada, released a list of products worth nearly $140 billion that she would place retaliatory tariffs on. “Being smart means retaliating where it hurts,” Freeland said. “Our counterpunch must be dollar-for-dollar—and it must be precisely and painfully targeted: Florida orange growers, Wisconsin dairy farmers, Michigan dishwasher manufacturers, and much more.”

Image courtesy of Ling Tang

Trump, after pinning inflation on gas prices, is almost certain to raise them with high tariffs on Canada. Kevin Hassett, the Director of the White House National Economic Council, believes domestic production will make up for the deficit. “President Trump is drill, baby, drill, and deregulate and tax cuts and reduce spending.”

China Could Benefit from Trade Wars with Latin America

Lost in the shuffle is the dragon in the east. China, one of Trump’s main targets during his first term, is quietly sitting on the sidelines for the moment. 

Despite being separated by the Pacific Ocean, China trades more with Brazil, Argentina, Chile, and Peru than those countries do with the United States. While Trump’s aggression won the day with Colombia, it is possible that strategy will not prove successful over the next four years. 

Stay Up to Date with Sheltered International

Global economies shift every day. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product. 

To learn more about our personalized expertise and state-of-the-art software designed to keep you ahead of the curve, contact us today.

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How Trump’s Tariff Plan Could Affect Importers and Exporters

The global economy is entering a period of significant uncertainty as President-elect Donald Trump prepares to implement his proposed tariff plan in 2025. Designed to protect American industries and reduce trade deficits, the plan includes tariffs on a range of imported goods, from automotive components to agricultural products. While intended to stimulate domestic production, the policy could disrupt global supply chains, raise consumer prices, and provoke retaliatory measures from key trade partners.

For U.S. businesses involved in international trade, understanding the potential ramifications is essential. Importers may face increased costs due to higher import taxes, while exporters risk losing competitiveness in foreign markets. Industries including consumer electronics, in addition to the aforementioned automotive manufacturing and agriculture, are expected to be among the hardest hit.

The proposed changes could reshape international trade by increasing operational expenses, altering sourcing strategies, and driving businesses to explore new markets. Being prepared with strategies to adapt will be essential for maintaining a competitive edge in a rapidly evolving global economy.

Image courtesy of Library of Congress / Unsplash

What is Trump’s Proposed Tariff Plan?

Tariffs are taxes imposed on imported goods. Their purpose is to encourage domestic production by making foreign-made products more expensive. 

While tariffs have not been a major part of international trade for many decades, Trump has previous experience with the economic tool. He signed a tariff on washing machines during his first term. The stated goal was to emphasize American production. Unfortunately, in this specific example, the price of domestic washing machines rose along with the cost of imported washing machines. Additionally, the cost of dryers matched the higher prices of washing machines—an unintended consequence of the tariff. On the positive side, an estimated 1,800 jobs were created in American factories due to the increased demand. It must be assumed that Trump felt the benefits of added jobs outweighed the higher costs for all consumers and wants to expand this economic policy in his second term. 

Throughout the campaign, Trump promoted the potential tariffs heavily but was light on specifics. It appears the target of the tariffs will be on regions where the U.S. has a trade deficit. This includes a stated 25% blanket tariff on all goods from Canada and Mexico and a 10% tariff on all Chinese-made products. At times, the President-elect has referenced some form of tariff on all $3 trillion of U.S. imports.

During a December interview on Meet the Press, Trump said that he cannot guarantee tariffs wouldn’t raise prices for American consumers—an interesting admittance from a candidate who made rising grocery prices a focal point of his campaign. “Some may call it economic nationalism,” Trump told the Economic Club of New York about his tariff plan, “I call it common sense.” 

Importers Will Feel an Impact

Higher tariffs will likely increase costs for U.S. businesses relying on imported materials and products. Companies may face higher operating expenses, forcing them to raise consumer prices, potentially contributing to inflation.

With increased customs inspections and regulatory compliance requirements, supply chains could experience significant delays. Businesses dependent on just-in-time inventory models might be particularly vulnerable. 

An alternative for importers is to diversify sources to regions unaffected by the tariffs. The potential downside here is incurring higher logistics costs. Companies will need to weigh the trade-offs between cost savings and delivery reliability. It is always a good idea to build strong relationships with multiple suppliers—especially now.

How Exporters May Feel the Crunch

It is likely that countries will counter Trump’s tariffs with retaliatory tariffs of their own. This would drive up the prices of U.S. products overseas, and thus reduce demand. Key export destinations may explore alternative suppliers, similar to U.S. importers diversifying their sources. 

Exporters should be proactive ahead of any potential tariffs and work to identify new international markets. By creating more options, exporters can help mitigate losses from traditional trading partners who would be affected by the large tariffs.

Image courtesy of Paul Fiedler / Unsplash

What Industries Are in the Most Danger?

Automotive

The automotive industry, heavily reliant on imported parts, could see price spikes for vehicles and components, affecting manufacturers and consumers alike.

Consumer Electronics

With tariffs on electronics components, tech companies may face reduced profit margins or pass increased costs on to consumers.

Agriculture

Farmers relying on export markets could experience decreased demand and oversupply, driving down prices and threatening profitability.

How Businesses Can Adapt

Adapting to new tariff policies requires a multi-faceted approach focused on cost management, trade compliance, and strategic market expansion. Businesses should begin by optimizing their supply chains through improved forecasting, logistics automation, and better supplier relationships. Investing in technology that enhances inventory management and demand planning can lessen risks stemming from fluctuating import costs.

Exploring alternative suppliers outside tariff-affected regions is another strategy. Establishing long-term contracts with diverse suppliers can reduce dependency on a single source, making the supply chain more resilient to sudden trade policy changes. Importers may also consider nearshoring production to regions with favorable trade agreements. While this tactic can lower transportation costs, the most common countries for U.S. importers to nearshore are two that Trump has singled out by name to receive tariffs on day one.

Lastly, expanding into new international markets can help businesses balance losses. Conducting market research to identify emerging economies with lower trade barriers can open new revenue streams. 

Overall, businesses that proactively implement cost-saving measures, diversify supply chains, ensure compliance, and explore new markets will be better positioned to navigate the challenges posed by shifting trade policies.

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.

Why Cargo Insurance Policies Are the Best Ways to Protect Your Shipments

It’s vital for your business that your shipments arrive at their destination safely. While it’s true that carriers offer some amount of protection for your shipment, this coverage is very limited. To protect your business and your goods against unexpected events, purchasing cargo, or freight, insurance is crucial. Read on to learn more about the types of policies available, the limitations of carrier liability, and how Sheltered International can help you find the right insurance for your business and your peace of mind.

Understanding Carrier Liability and Declared Value

Warehouses and carriers will only be required to pay when loss or damage to your goods is proven to be their responsibility – and the burden of proof is usually on the shipper. That means that natural disasters, Acts of God, fire, and numerous other potential problems will leave you without financial protection. Likewise, all carriers have a limit of liability, resulting in a compensation far lower than the actual value of the goods. For example, an ocean carrier is limited to $500 per package.

Declared Value is a means of increasing this potential value; however, it still does not remove the burden of proof placed on the shipper and often still results in a compensation less than the shipment value. Though often confused with cargo insurance, Declared Value is not the same and does not offer the same level of protection.

What Cargo Insurance Covers

Cargo insurance protects your shipment while it is in transit, even as it moves through different modes and carriers. While carrier liability is limited, cargo insurance offers door-to-door coverage and will pay for losses that are outside the carrier’s control. Additionally, the shipper will recuperate the full value of the cargo lost or damaged, as well as freight or other associated costs. Coverage is generally either All-Risk or Free of Particular Average (FPA); which of the two primary types of policies is chosen will determine the spectrum of situations covered.

All Risk Insurance is the most common type of policy and covers by far the broadest range of incidents. All events are covered unless explicitly excluded in the policy. Commonly excluded situations include nuclear events, strikes, and riots, as well as innate flaws in the goods like inadequate packaging or decay.

By contrast, FPA coverage, or ‘named-perils coverage’ is more limited and excludes most partial losses of shipments due to common causes such as rough handling or pilferage unless explicitly named in the policy. It also does not cover heavy weather, theft of an entire shipping package, improper stowage, and other more common occurrences. Often, FPA coverage is the only available option for shipments of used merchandise and bulk goods. It is also most common for marine insurance policies, as compared to those covering other methods of transport like air freight or trucks.

What Cargo Insurance Doesn’t Cover

Of course, regardless of the type of policy chosen, it is important to note that cargo insurance only protects physical loss or damage. Customs rejection, cargo abandonment, delays, and other events that could result in financial losses are not covered, even under an All Risk policy.

How Sheltered International Can Help

Cargo insurance is an undeniably important part in protecting your business. Through our shipment-management software SiShips, we offer consultations and support in finding a policy that works for you.

Contact us today to learn more about how we can help your business.

What Business Owners Need to Know

As Donald Trump returns to the U.S. presidency following the 2024 election, the business community is gearing up for significant shifts in domestic and international trade. Trump’s previous term was marked by trade reforms, tariffs, and an emphasis on boosting U.S. manufacturing. Additionally, the Covid-19 pandemic during the final year of his first term reshaped both supply chains and market dynamics worldwide. 

Trade Policies from the First Trump Term

During his initial tenure, Trump’s “America First” approach altered trade relationships, emphasizing domestic manufacturing and reducing dependence on foreign suppliers. Tariffs on billions of dollars in goods from China created ripple effects for industries reliant on international goods and resources. 

Between 2018 and 2020, Trump’s tariffs on Chinese imports reached a cumulative value of approximately $360 billion. These policies forced U.S. businesses to pivot, find new suppliers, and re-strategize logistics. Economists note that while U.S. manufacturing grew in some areas, many sectors faced increased costs, with prices on imported goods rising as a result of tariffs.

Expected Domestic Trade Policies from the Campaign Trail

As Donald Trump enters his new term, his administration is likely to further support U.S. manufacturing through trade restrictions, tax incentives, and potential new tariffs aimed at protecting American industries.

One anticipated move is to incentivize American-made goods and discourage reliance on foreign suppliers. Keep an eye on sectors where the U.S. has been historically dependent, such as electronics and pharmaceuticals. This could translate to expanded tax breaks for companies that produce within U.S. borders, mirroring policies from 2017-2021 aimed at boosting domestic manufacturing capacity.

For logistics and supply chain professionals, a renewed emphasis on domestic production could shift demand patterns. Supply chain analysts project that reshoring efforts may intensify, creating challenges for those reliant on overseas production . Businesses may need to reconsider sourcing strategies, especially in high-demand industries like healthcare, automotive, and technology.

Small and medium-sized businesses might face unique challenges as tariffs rise. Trump repeatedly stated on the campaign trail that he would impose a minimum 10% tariff on all imported goods with a 60% tariff on goods from China. It is unclear whether these tariffs will become a reality as numerous economists warn of the negative effects. If they are put in place, businesses ready to pivot to domestic suppliers could benefit as the rest of the market races to catch up.

International Trade Policy Shifts and Trade Tensions

Trump’s prior administration initiated unprecedented tariffs on countries like China and allies like the European Union. The return of such strategies would renew trade tensions.

Following his return to the White House, Trump could renegotiate or withdraw from certain trade agreements. The president-elect said as recently as October that he wants to revisit the agreement he signed in 2018. “I want to make it a much better deal. I want to take advantage, now, of the car industry.” These potential changes may bring about stricter regulations on imports.

Industry-Specific Impacts to Watch

Different sectors will experience unique impacts based on Trump’s trade policies, with some industries benefiting and others facing challenges.

Domestic manufacturing could see a boost with incentives to reduce reliance on international suppliers, particularly for goods in critical sectors such as defense, electronics, and pharmaceuticals. Analysts suggest this may lead to job growth within the U.S., though higher costs may impact product pricing. CEOs like Elon Musk, who provided $130 million to the Trump campaign in its closing days, are betting big on the once and future president. So far, that bet appears to be paying off as Tesla stock climbed 15% the morning after the election.

One area that is not so rosy is agricultural exports. China instituted their own tariffs on soybeans and pork, in return for the Trump tariffs. Agricultural exports may once again be vulnerable to trade wars. “When we start putting tariffs on others, usually the retaliatory tariffs end up on American agricultural products,” said Bob Hemesath, a soybean farmer and the Chairman of Farmers for Free Trade.

With Trump’s previous emphasis on protecting American intellectual property, there may be tighter regulations on technology imports and exports. This is especially true for sectors where cybersecurity and intellectual property rights are at stake. Restrictions on hardware imports could impact technology firms dependent on foreign-sourced components.

The return of Donald Trump to the White House brings opportunities and challenges for American businesses engaged in domestic and international trade. From tariffs to regulatory changes, businesses will need to adapt. By preparing strategically—diversifying supply chains, planning financially, and monitoring compliance—business owners can position themselves for resilience in the global market.

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.

Good Faith Negotiations from Both Sides Prevent Prolonged Port Strike

After a brief three days, the East Coast port strike that threatened to disrupt domestic and international shipping has been suspended. Negotiators on both sides, led by I.L.A. President Harold Daggett and Secretary of Transportation Pete Buttigieg, brought temporary relief to business owners and logistics managers across the country.

The most notable part of the agreement is a 63% wage increase for longshoremen over the next six years. This is lower than the initial ask from the I.L.A. of an 80% increase, but far higher than the initial offer from employers represented by the United States Maritime Alliance. The agreed-upon framework extends the current contract through January 15, 2025. That pushes the possibility of another strike well beyond the upcoming election and holiday season.

What You Need to Know About the Port Strike

At the end of September, a strike was all but guaranteed. There was a significant gap between the requests of the I.L.A. and the offer from employers. Shipping logistics and  political experts theorized about the use of the Taft-Hartley Act to prevent a strike, but President Biden said he would not use those powers. A week later, executive orders were unnecessary as workers returned to the ports on October 4, 2024. 

The strike affected 14 ports, ranging from Boston, around Florida, to Houston. Fears of significant disruptions to the flow of goods have been put aside for now. However, there is still work to be done as the topic of automation is still unfinalized.

How Significant were the Effects on Imports?

The effects of the strike were immediate. Companies relying on just-in-time inventory systems were particularly concerned. For industries like retail, where timely product deliveries are essential, the delays had the potential to lead to stock shortages. With the forecast of a strike, many were able to increase their stock in advance. There were reports of panic buying toilet paper, similar to the first few weeks of the Covid-19 pandemic, in some markets. Ironically, 85% of toilet paper purchased by the United States is produced domestically. 

While cargo ships were forced to anchor offshore, the delays did not last long compared to the most recent strike in 2006 which lasted 11 days. 

Returning to Business and Preparing for the Future

With the strike now temporarily suspended, business owners can expect operations to return to normal. Limited backlogs at the affected ports are in the process of being cleared. 

Although the strike is currently suspended, there is still uncertainty regarding a permanent resolution. If negotiations break down again, there is a risk that the strike could resume. Business owners now have an opportunity to assess their current logistics strategy and take steps to mitigate future risks.

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.

Port Strike Looking Increasingly Likely for East Coast

Implications for U.S. Supply Chains 

The possibility of a strike at East Coast ports has raised concerns among business owners and supply chain managers across the U.S. With the current labor contract between dockworkers and port owners set to expire on September 30, 2024, a strike as early as October 1st seems increasingly likely. 

What’s at Stake in the Labor Dispute

The driving force behind the potential strike is union demands for an 80% pay raise over the next six years. While this might seem excessive to some, it reflects broader tensions in the maritime labor sector. Dockworkers are also pushing for better work rules, which would give them greater flexibility and security at a time when artificial intelligence threatens many traditional jobs.

On the other side, port owners—representing major ports along the Eastern Seaboard and the Gulf Coast—are focused on increasing automation. This tug-of-war between traditional labor demands and the push for automation is causing the current friction between the two sides.

With negotiations still ongoing, both sides face a critical deadline. If no agreement is reached by September 30th, dockworkers are likely to walk off the job on October 1st, initiating a strike that could last several weeks. This potential disruption has already triggered alarm bells in the logistics industry, as even a short strike could have far-reaching consequences. 

Will the Government Step in to Prevent a Port Strike?

Given the significant role these ports play in the U.S. economy—handling approximately 40% of all imports—even a brief work stoppage could send ripples across multiple industries. For instance, ports such as New York and Savannah serve as critical gateways for goods ranging from consumer electronics to industrial components.

The last time dockworkers went on strike at East Coast ports was in 1977. Perhaps unsurprisingly, the issues at stake over 40 years ago were the same that they are today: job security and wage increases. 

Though President Biden has expressed reluctance to intervene by enforcing the Taft-Hartley Act, this stance could change if the port strike lasts more than a week. The Taft-Hartley Act has been invoked in the past to prevent prolonged strikes from damaging the economy, but it remains a last resort. Such a move would not be without precedent, Biden used the power of the federal government to block a nationwide railway strike in 2021. 

Similarly, while on the campaign trail earlier this summer, Vice President Kamala Harris said it was an option she would consider. This was part of the calculus behind the recent announcement from the Teamsters that they would not be endorsing any candidate in the 2024 election.

What Impact Would a Strike Have on Supply Chains?

A port strike of any duration would turn U.S. supply chains upside down. Businesses relying on just-in-time inventory systems could face significant delays, while smaller companies may struggle to find alternative transportation solutions. The disruption would lead to unpredictable shipping schedules, port backlogs, and a race for alternative shipping routes. 

The added pressure of a strike would come as many businesses are recovering from pandemic-related disruptions. For some industries, such as retail and manufacturing, the timing couldn’t be worse, as they brace for increased consumer demand in the final quarter of the year.

While a strike is unwelcome news for most businesses, capacity owners such as trucking companies and intermodal service providers could benefit. Freight rates are likely to rise as demand surges for transportation alternatives. However, this increase in cost is likely to hurt shippers, who will have to absorb higher transportation expenses as they scramble to maintain their supply chains.

How Business Owners Can Prepare for a Port Strike

To mitigate the impact of a potential strike, business owners should start by reviewing their supply chains and identifying vulnerabilities. Consider diversifying your supplier base or working with logistics providers to explore alternative ports, such as those on the West Coast or in Canada.

Additionally, having a solid contingency plan in place is crucial. This might involve increasing inventory levels ahead of time. The more proactive businesses are preparing for a disruption, the better equipped they will be to weather the storm. If you’re looking for guidance, don’t hesitate to call us at (904) 604-0000 to make sure you are ready for any eventuality. 

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.

Disruptions to North American Trade Could Affect Global Shipping

It has been a tumultuous season for Canadian rail workers. Originally striking over safety and scheduling concerns, the workers were required to return to work by the Canadian government. That decision was condemned by the Teamsters Canada Rail Conference, who responded by filing an appeal to the arbitration order. 

“These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will,” said Teamsters president Paul Boucher. “The right to collectively bargain is a constitutional guarantee. Without it, unions lose leverage to negotiate better wages and safer working conditions for all Canadians.” 

While the trains are, to borrow a phrase, back to running on schedule, it is clear that this is not the end of the debate. The possibility of a Canadian rail strike has raised significant concerns within industries reliant on the rail system for transporting goods. As one of the key arteries for North American freight, Canada’s rail network plays a pivotal role in moving commodities across the continent and beyond. A strike could disrupt supply chains, inflate transportation costs, and create delays that ripple through global trade. For businesses dependent on rail logistics, preparing for such a disruption is essential.

Critical Component of North American Logistics

Canada’s rail system spans coast to coast, connecting key industrial regions to ports, cities, and the U.S. border. While holding slightly more than 10% of the population of the United States, Canada is the second largest country in the world by area. Canadian railroads move 40 million metric tons of freight each month including essential commodities like crude oil, lumber, grain, and finished goods. The network supports both domestic and international trade, linking Canada’s economy to global supply chains. 

Given its critical role, any disruption—such as a strike—could immediately impact industries across the continent.

What’s Behind the Potential Strike?

Rail strikes in Canada are not unprecedented. Recent strikes in 2019 caused major disruptions to the agriculture and energy sectors, showing just how vulnerable supply chains can be. When labor agreements falter, rail operations are halted, leading to nationwide consequences that can take weeks or months to resolve.

The potential strike in 2024 revolves around disagreements over a new contract. Of course, higher wages are on the table, but the focus for negotiators is over safety conditions and scheduling procedures. In that way, it is not dissimilar from the potential rail strike in 2022 in the United States. 

The Impact on Global Shipping and Supply Chains

A Canadian rail strike would create immediate bottlenecks in moving goods, particularly in sectors dependent on bulk transportation. Industries such as agriculture, energy, automotive, and manufacturing would be hit the hardest.

Canadian farmers rely on rail to transport grain and other agricultural products to ports for export. A delay in moving these goods could lead to spoilage or missed contracts, affecting food supply chains globally. Farmers voiced their displeasure with the handling of the situation and compared Canadian rail to essential services like hospitals.

Additionally, crude oil and natural gas shipments via rail could see significant delays, affecting both Canadian and U.S. markets that depend on these resources.

Lastly, for both perishable and production-related goods, many manufacturers operate under just-in-time inventory systems, meaning even small delays can halt production lines and lead to costly downtime.

With rail out of the equation, companies will be forced to explore more expensive alternatives, such as trucking or air freight. These modes of transportation not only come at a higher price but also face capacity limitations. The shift from rail to truck would strain an already congested trucking industry, driving up costs and leading to further delays.

Since Canada’s rail system is a major gateway for goods entering and leaving North America, a rail strike could have international consequences. Ports may become congested as goods pile up waiting for transport, and the U.S. could experience delays in cross-border shipments. 

How Logistics Managers Can Mitigate Risks

To safeguard operations against a potential rail strike, logistics managers should consider diversifying their transportation methods. Shifting some shipments to trucks or exploring maritime routes can provide alternative paths for critical goods. Partnering with third-party logistics providers can also offer flexible solutions when rail networks are compromised.

Businesses should evaluate their inventory management strategies to reduce reliance on just-in-time deliveries. Increasing buffer stocks or securing warehousing options can help absorb the impact of delayed shipments. While stockpiling may increase short-term costs, it can prevent production shutdowns in the event of a strike, which is still on the table.

SiShips Gives You the Advantage

SiShips combines expertise with state of the art software to bring you high quality domestic and international shipping solutions. We put 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.

Follow These Guidelines For a Smooth Shipping Process

Importing goods into the European Union (EU) can be complex. There are many intricacies that, especially for businesses unfamiliar with EU regulations and customs procedures, may seem unnecessarily complicated. In the shipping industry, time is money and even a one day delay from a misentered number can translate to big losses. 

However, while EU systems and forms may seem overwhelming, they are relatively straightforward when you have accurate information. To help streamline the process, it’s important to follow best practices and have all of your documentation filled out accurately. 

Here at SiShips, we have been working with domestic and international freight forwarders for decades. Drawing from that experience, we’ve put together this list of tips and recommendations to make your EU import process go down as smoothly as a sip of chardonnay on the Seine.

Ensuring Accurate Documentation

1. Accurate Party Information

The most common issue we see in the customs clearance process is incorrect or incomplete party information on the commercial invoice and packing list. It is crucial that the sold-to party listed on both documents matches the actual purchaser of the goods. 

This is not to be confused with the ship-to party. If the sold-to party and ship-to party are different, be sure to include the actual receiver’s name and address.

2. Provide Contact Details at the Fulfillment Company

This sounds obvious, but double check the name, telephone number, and email address of a contact person at the fulfillment company are included on your forms. 

Why is this important? If there are any issues during the import, you want it to be quick and easy for customs officials to reach someone who can supply an answer.

3. Include Harmonized Commodity Numbers

The harmonized commodity number is a classification code used to identify goods. Customs officials in particular care about this number because it is how they determine duties and taxes. 

Both the commercial invoice and the packing list should clearly indicate this number. Failure to provide the correct commodity number can lead to a misclassification, resulting in incorrect duties being applied or, worse, goods being held at customs.

4. Specify EORI and VAT Numbers

The EORI (Economic Operators Registration and Identification) number and VAT (Value-Added Tax) number of the party responsible for customs clearance are critical pieces of information. These numbers must be included on both the commercial invoice and packing list.

An error with either of these numbers can lead to significant delays.

5. Accurate Commercial Invoice Total

At this point, it is probably clear that the biggest flag for customs is discrepancies in the value of goods. Customs duties and taxes are calculated based on the commercial invoice total, so it is important to ensure its accuracy.

Any funny business here can lead to hefty delays and penalties.

Streamlining the Import Process

6. Detailed Packing List

A comprehensive packing list is another key element in facilitating smooth customs clearance. This list should include the number of pieces in the shipment and the weight of each piece. 

For pallet cargo, follow standardized documentation practices to make sure the information is easy for customs officials to verify. 

7. Import Broker Information

If you have an import broker in Europe or the U.K., provide their full contact details on the shipping documents. An import broker can be invaluable when navigating EU customs procedures, especially for businesses unfamiliar with the process and working from a different time zone. 

Your goods can still be delivered without a local import broker, but it is advisable to notify your logistics provider so they can be ready to assist if needed.

8. Distribution Center Requirements

Before shipping, check with the distribution center where the goods will be delivered for any additional requirements. These requirements can include documents such as an agreement to provide fulfillment center services, links to where the goods are available for sale, and proof of payment to your supplier.

Meeting these requirements upfront will help prevent delays upon arrival. In shipping, as with most things, being proactive is a great way to set yourself up for success.

Maximizing Financial Efficiency

9. VAT/Taxes Reclamation

Who doesn’t love getting money back?

If your EORI and VAT numbers are correctly set up, the VAT or taxes paid upon the goods’ arrival can be reclaimed. However, it’s important to note that import duties cannot be reclaimed. This is just another reason why having your documents in order helps save you time and money, literally.

SiShips Gives You the Advantage

SiShips combines expertise with state of the art software to bring you high quality domestic and international shipping solutions. We put 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.

Workers and Management Brace for Another Rocky Summer of Negotiation

The International Longshoremen’s Association (ILA) halted negotiations with the United States Maritime Alliance (USMX) ahead of the current contract’s expiration date on September 30. The major disagreement between the two parties was the use of automation, specifically an Auto Gate system, which processes trucks without ILA labor.

This might sound familiar, but unlike previous years threats of strike on the west coast and in Canada, this year’s drama revolves around ports on the east coast of the United States. As negotiations between the east coast port unions and port authorities reach a critical juncture, the looming threat of a strike has raised concerns across the logistics and supply chain sectors. The east coast plays a vital role in global trade, handling a significant portion of the nation’s imports and exports.

Key Issues at Stake

The central points of contention are automation and job security. While port operators push for increased automation to improve efficiency and reduce costs, the unions argue that such measures threaten jobs and compromise worker safety. Additionally, disputes over wage increases and healthcare benefits have further strained negotiations.

The union employed some snark and said, “Here we go again! This is another example of USMX members unilaterally circumventing our coast-wide Master Contract. This is a clear violation of our agreement with USMX, and we will not tolerate it any longer,” in a release. ILA president Harold J. Daggett concurred that “[t]here’s no point trying to negotiate a new agreement with USMX when one of its major companies continues to violate our current agreement with the sole aim of eliminating ILA jobs through automation.”

Potential Fallout for a Port Workers Union Strike

A strike would likely halt operations at major East Coast ports, which stretch from Maine to Texas, including the Port of New York and New Jersey, the Port of Savannah, and the Port of Charleston. These ports are critical gateways for goods entering and leaving the United States. Immediate effects would include delays in cargo handling, increased congestion, and a backlog of ships waiting to dock.

The long-term economic impact could be substantial. In 2023, Bloomberg reported that a west coast port union strike could cost the US economy upwards of $500 million per day. Similar disruptions on the East Coast could lead to comparable losses, affecting industries reliant on timely deliveries, such as retail, manufacturing, and automotive sectors. 

This could also have a significant impact on the 2024 presidential election with President Biden’s position as a labor-friendly incumbent precarious, especially with his approval ratings already dipping.

Gauging the Probability of a Union Strike

Workers, freight forwarders, politicians, reporters, and more will keep a close eye on the state of negotiations all summer. However, the best way of predicting the future might be to look to the past. President Daggett is in familiar waters as he was in charge the last time there were negotiations between the ILA and USMX in 2015. That time, a strike was averted by signing a new long term contract days before the previous was set to expire. It is possible we will see a similar timeline this year.

Regardless of the outcome, the current dispute highlights the need for long-term changes in port operations and labor relations. Increased automation, improved labor conditions, and enhanced negotiation frameworks could help prevent future conflicts and ensure the stability of port operations.

Business leaders should view the potential strike as an opportunity to strengthen their strategic planning. By investing in supply chain resilience, diversifying logistics networks, and leveraging technology, companies can better withstand future disruptions and maintain competitive advantage.

How SiShips Gives You the Advantage

Sheltered International combines expertise with state of the art software to bring you high 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.

Avoid These Common Shipping Documentation Mistakes

Shipping goods internationally can be a complex process, fraught with potential pitfalls. One of the most critical aspects of this process is ensuring that your shipping documentation is accurate and complete. Mistakes in documentation can lead to delays, fines, and dissatisfied customers. Join us as we explore some of the most common shipping documentation mistakes and, more importantly, how to avoid them.

Mistake 1: Incorrect or Incomplete Shipping Addresses

An incorrect or incomplete shipping address can cause significant delays and even result in the loss of your shipment. Shipping carriers rely on accurate addresses to deliver goods efficiently. If an address is wrong, your shipment may end up in the wrong location or be returned to you, incurring additional costs.

This may seem basic, but in our experience we have seen too many shipments waylaid because the documentation read ‘Mable Street’ instead of ‘Maple Street’.

Tips to Avoid This Mistake

1. Double-Check Addresses: Always double-check the shipping address for accuracy. Ensure that it includes all necessary details, such as street name, building number, city, state, and postal code.
2. Use Standardized Formats: Follow standardized address formats for the destination country. This helps avoid confusion and ensures that the address is easily understood by local carriers.
3. Confirm with the Recipient: Whenever possible, confirm the address details with the recipient. Keep in mind that even in English speaking countries there are often localized spellings of common words.  This step can help catch any errors before the shipment is sent out.

Mistake 2: Incorrect Product Descriptions and Quantities

Incorrect product descriptions and quantities can lead to issues with customs. Customs officials rely on accurate information to assess duties and taxes. If the descriptions or quantities are incorrect, your shipment may be delayed for inspection, or you may face fines for non-compliance. Customs officials are not trying to make your life difficult. A simple clarification of ‘Laptop Computers’ instead of ‘Electronics’ can save everyone a lot of stress.

If you are interested in more information about what triggers a customers exam, check out our full write-up here.

Tips to Avoid This Mistake

1. Use Clear and Detailed Descriptions: Provide clear and detailed descriptions of your products. Include information such as material, size, and intended use.
2. Verify Quantities Against Order: Double-check the quantities listed on your shipping documents against the actual order. Ensure they match to avoid discrepancies.
3. Use HS Codes: If applicable, use Harmonized System (HS) codes for your products. These codes help customs officials classify goods accurately and speed up the clearance process.

Mistake 3: Inaccurate Weight and Dimensions

Inaccurate weight and dimensions can lead to unexpected shipping costs and surcharges. Carriers base their rates on the weight and size of packages. If these are incorrect, you may be charged more than expected or face delays as the carrier remeasures your shipment. 

Tips to Avoid This Mistake

1. Use Accurate Scales and Measuring Tools: Invest in reliable scales and measuring tools to ensure accurate measurements of your packages.
2. Package Items Securely for Measurement: Ensure that items are securely packaged before measuring. This prevents any changes in weight or dimensions during transit.

Mistake 4: Missing or Incorrect Customs Documentation

Customs documentation is crucial for international shipments. Missing or incorrect documents can lead to delays, fines, and even the confiscation of your goods. 

Each country has specific requirements, and failing to comply can be costly. It can help to work with a freight forwarding company like SiShips. We have decades of combined industry experience and have sent exports to over 121 countries.

Tips to Avoid This Mistake

1. Research Specific Requirements for Each Destination: Different countries have different documentation requirements. Research these requirements thoroughly before shipping.
2. Consult Customs Brokers if Needed: If you’re unsure about the documentation needed, consult with a customs broker. They can provide expert guidance and ensure your paperwork is in order.

Mistake 5: Failure to Properly Insure Shipments

The only time insurance is not a good idea is at the blackjack table. Shipping goods internationally carries inherent risks, including loss, damage, and theft. Without proper insurance, you may be left covering these losses out of pocket, which can be financially devastating.

Tips to Avoid This Mistake

1. Determine the Value of Your Goods: Assess the value of your shipment accurately. This helps determine the appropriate level of insurance coverage.
2. Choose Appropriate Insurance Coverage: Select insurance that covers the full value of your goods and any potential risks during transit.

Mistake 6: Overlooking Special Handling or Hazardous Material Requirements

Special handling and hazardous material shipments require strict adherence to regulations. Non-compliance can result in severe penalties, environmental harm, and safety risks.

Not only can a mistake with labeling put other people in harm’s way, your shipment might be stopped indefinitely. Even if the shipment ultimately gets through, you will face hefty fines for misrepresenting hazardous materials.

Tips to Avoid This Mistake

1. Research Specific Requirements for Your Products: Understand the regulations for shipping hazardous materials. Ensure your documentation and packaging comply.
2. Clearly Label Packages: Properly label packages to indicate any special handling requirements or hazardous materials. This ensures carriers handle them appropriately.

Mistake 7: Choosing the Wrong Incoterms

Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international trade. Choosing the wrong Incoterm can lead to misunderstandings, unexpected costs, and disputes.

Note: Incoterms were originally introduced in 1936 in order to facilitate international trade. We are currently following the 9th version of the system, Incoterms 2020, which went into effect on January 1, 2020. Following historical precedent, it is likely the next set of Incoterm rules will be released ahead of 2030.

Tips to Avoid This Mistake

1. Understand the Different Options: Familiarize yourself with the different Incoterms and what they entail. This helps you make informed decisions.
2. Choose the Incoterm That Best Suits Your Needs and Responsibilities: Select an Incoterm that aligns with your business model and the specific shipment. This ensures clear responsibilities and reduces the risk of disputes.

Bonus Shipping Documentation Tips

1. Use a Reliable Shipping Software or Platform: Invest in a shipping software or platform to streamline documentation and reduce errors.
2. Establish Clear Internal Processes for Documentation and Review: Create and follow clear processes for preparing and reviewing shipping documents. This helps catch mistakes before they become costly.
3. Stay Updated on Changing Regulations and Requirements: International shipping regulations can change frequently. Stay informed to ensure compliance.
4. Build Relationships with Trusted Shipping Partners and Carriers: Working with reliable partners can help ensure smooth and efficient shipping operations.

By implementing the tips outlined in this article, you can minimize risks and ensure your shipments arrive on time and without issues. Remember, a little extra effort in preparing your documentation can save you a lot of trouble down the line. Happy shipping!

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.