Logistics Nightmares
February 26, 2008 by Splatty
Filed under Misc Logistics
Whether on the shipper side or forwarder side we have all faced them, because let’s face it, its freight. With the possibility of so many events to go wrong during the life cycle of a single shipment, every once in a while the inevitable disaster will take place. The key is how we deal with the problems when they arise. In my years in the business I have seen people’s reactions to logistics nightmares range from going ballistic to the attitude of oh well…that’s life.
From a forwarder’s perspective there is nothing more disatisfying than telling your customer, “Hey Bob remember those two ocean containers you booked two weeks ago? Well, thanks to a storm, they are sitting at the bottom of the Pacific Ocean.” And I’m sure that from a shipper’s perspective there is nothing more disconcerting than learning a problem with a shipment will affect sales and having to relay that message to upper management.
When issues do arise (and they will) we can’t run and hide. There is nothing worse than a forwarder trying to hide the issue from a customer hoping that the problem will simply go away. When shipment problems surface, a company must be pro-active and forthright in dealing with and attempting to resolve the issue.
Do you have a logistics nightmare? Drop us a line in the comment form and let us know. We would love to hear your story. Of course, please keep all company names confidential to protect the innocent…and even the not so innocent.
Beijing Olympics impact: Tianjin to cut vehicle traffic in half to curb pollution
Tianjin, a major port and the gateway to Beijing, is working to clean the air for this summer’s Olympics in neighboring Beijing.
The city’s Daily News said Tianjin plans to adopt an even, odd vehicle number plate system that will allow only half of all cars to be on the streets on the same day and will also ban construction work on sites close to Olympic venues.
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Major polluting industries such as the Beijing Chemical Corp, Beijing Dongfang Petrochemical Corp and the Huadian Coal Fire Electricity Co have been ordered to shut down operations by the end of June, the Beijing News said.The closures come after the city shut down 40 polluting factories last year, it said.
“The tasks of bringing environmental pollution and traffic congestion under control remain arduous,” Beijing mayor Guo Jinlong said in a speech to the city’s legislature in January.
The communist government has no qualms about forcing factories to close, has done so in the past, and will do so in the future. If you source any product in and around the Tianjin area, like my company does, you’d be wise to reach out to your agents, suppliers, and logistics providers to assess the impact that the governments actions may have on your supply chain. I know I am.
Vietnam seeks to boost exports through trade councillors
Vietnam’s Prime Minister, Nguyen Tan Dung, has asked trade councillors in Vietnamese embassies worldwide to work harder to promote Vietnam’s exports.
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He said to achieve the target of US$59 billion in export revenues in 2008, the trade councillors would have to aid domestic businesses in expanding their outlets overseas and overcoming trade barriers.
Everyone seems to be talking about Vietnam these days and certainly they are on the rise as a fast developing source for importers and retailers.
Top export markets for the U.S. – 2007
Now I couldn’t just post on China overtaking Canada as the top exporter to the U.S. without looking at the numbers for U.S. Total Exports, could I? Here are the top 10 for 2007, export value, and percent change from 2006 to 2007:
1. Canada – $248.4 billion (+7.9%)
2. Mexico – $136.5 billion (+1.8%)
3. China – $65.2 billion (+18.1%)
4. Japan – $62.7 billion (+5.1%)
5. United Kingdom – $50.3 billion (+10.8%)
6. Germany – $49.7 billion (+20.2%)
7. Korea – $34.7 billion (+6.9%)
8. Netherlands – $32.9 billion (+6.1%)
9. France – $27.4 billion (+13.2%)
10. Taiwan – $26.4 billion (+14.5%)
That’s right, China is now our third biggest export market after Canada and Mexico. And that 18.1% gain from 2006 to 2007 is larger than China’s exports to the U.S. from the same period (an impressive, but lower, gain of 11.7%). In 2005-2006 China was our fourth biggest export market after Japan. In fact, China has risen steadily in the ranks of our export markets for quite some time now, rising from 7th to 3rd during the period 2002-2007.
The largest gains for U.S. exports?
India: +74.3% ($17.6 billion)
Poland: +59.3% ($3.1 billion)
Russia: +56.1% ($7.3 billion)
Peru: +40.7% ($4.1 billion)
Panama: +38.2% ($3.7 billion)
The biggest losers?
Malaysia (again?): -6.9% ($11.7 billion)
New Zealand: -3.9% ($2.8 billion)
UAE: -2.6% ($11.6 billion)
Philippines: +1.3% ($7.7 billion)
Mexico: +1.8% ($136.5 billion)
