{"id":10554,"date":"2014-05-07T14:37:16","date_gmt":"2014-05-07T21:37:16","guid":{"rendered":"https:\/\/www.globaltrademag.com\/?p=10554"},"modified":"2014-12-17T16:48:28","modified_gmt":"2014-12-18T00:48:28","slug":"airports","status":"publish","type":"post","link":"https:\/\/www.globaltrademag.com\/airports\/","title":{"rendered":"(Air)Ports"},"content":{"rendered":"

Port-Wise: Five Things Shippers Should Know About Their Ports and Airports<\/span><\/h3>\n

Moving a product from point A to point B may seem like a relatively painless process, but it is often anything but. Logistics experts say this is especially true when the shipment must cross international borders. Aside from the obvious issues\u2014namely, the lead time of the shipment\u2014a number of other questions arise. For instance, does the shipment contain any perishable commodities and\/or potentially hazardous materials? Which mode of transportation should be utilized? And, finally, once the seafreight-vs.-airfreight decision has been made: Which port or airport should the goods travel to?<\/p>\n

The latter question is particularly important, experts say, since all ports and airports are not created equal. Shrewd supply-chain managers must carefully consider where their cargo is heading before selecting the recipient of their goods. Asking the following five questions will also shed light on the best port or airport for one\u2019s particular logistics needs:<\/p>\n

1. \u201cWHO EXACTLY WILL BE HANDLING MY GOODS?\u201d<\/h4>\n

Your cargo is important to you, which is why the individuals handling it must be consummate professionals. Take Hong Kong International Airport, for example. HKIA, which eclipsed Memphis International Airport as the No.1 freight airport in 2011, has been buoyed by its relationship with cargo-handler Hong Kong Air Cargo Terminals Ltd. Some even credit Hactl\u2014considered one of the top airfreight terminals in the world\u2014with attracting carriers to the Asian-Pacific airport.<\/p>\n

Silvano Solis, CEO of Interpuerto Monterrey, Mexico\u2019s largest inland port, believes Hactl\u2019s success isn\u2019t an isolated phenomenon. Before shipping goods to a location, Solis says, it\u2019s important to consider who will be on the receiving line. \u201cFind a reliable business partner,\u201d he advises\u2014\u201cprofessionals in their field who are able to support your operation.\u201d He says it\u2019s something Interpuerto Monterrey does well. Solis reveals that Interpuerto Monterrey is currently developing an infrastructure that will enable it to support and customize customers\u2019 needs, which adds value to their investments. \u201cInformation and performance of the elements in the system will be the key to our success,\u201d Solis says. Key to shippers\u2019 success, however, is finding a port or airport that is adept at handling their specific type of cargo.<\/p>\n

2. \u201cWHICH CARRIERS OPERATE AT THE PORT OR AIRPORT?\u201d<\/h4>\n

Before selecting a port or airport, consider the strength of its carrier network. Rick Ferrin, former CEO of the Jacksonville Port Authority and current vice president of TranSystems, says this may seem commonsense, but it should weigh heavily on a company\u2019s decision to ship to a certain facility. For starters, Ferrin encourages shippers to find a carrier with a demonstrated service frequency that enables it to avoid cargo backlog at the point of origin and preclude shortages at the final destination.<\/p>\n

Ferrin also has pointed advice for shippers moving their goods by sea: \u201cSelect a carrier that services a port in proximity to the origin of the cargo to reduce the time and number of handlings the cargo will need to start the ocean voyage.\u201d Equally important, Ferrin says, is that the shipper selects a carrier with an \u201cestablished and efficient\u201d operation at the particular port or airport. For instance, he asks, does the carrier perform value-added services such as surface transportation, freight storage and distribution? These may seem like perks, he says, but they\u2019re integral to a successful shipping process.<\/p>\n

3. \u201cWHAT ARE THE CUSTOMS REGULATIONS OF THE AIRPORT OR PORT I\u2019M CONSIDERING?\u201d<\/h4>\n

In a perfect world, every country would adhere to the same Customs regulations. Unfortunately, inconsistencies abound when it comes to Customs requirements, which is why it\u2019s essential that shippers educate themselves about the law of the land before moving goods into a region.<\/p>\n

\u201cI always tell customers that they need to be savvy enough to understand where they\u2019re sending their shipments to because they may be able to send a parcel and then they\u2019ll have a Customs issue,\u201d says Michael Taylor, DHL Express\u2019 global senior manager of U.S. government operations. \u201cThat\u2019s [the thing] with Customs regulations\u2014they vary.\u201d<\/p>\n

He says U.S.-based companies are particularly vulnerable to Customs issues. \u201cOur interpretation of what\u2019s customary in the U.S. is not always the case in other countries,\u201d Taylor says. \u201cYou may think, \u2018Oh, it\u2019s okay to send that,\u2019 but it\u2019s not permitted according to the country [on the receiving end.]\u201d<\/p>\n

Avoiding potentially expensive\u2014and embarrassing\u2014problems at a port or airport requires shippers to do their homework. Taylor encourages companies to reach out to international specialists, such as DHL, or consult their national chamber of commerce before shipping goods to a new port or airport.<\/p>\n

4. \u201cWHAT ARE THE COSTS AT BOTH THE POINT OF ORIGIN AND FINAL DESTINATION?\u201d<\/h4>\n

Since hidden costs are common in the transportation sector, Rick Ferrin advises shippers to educate themselves about the total billing process. After all, he says, shippers can dictate a carrier\u2019s port selection based upon a number of cost variables. \u201cAnd knowing these variables is critical to minimizing total transportation costs,\u201d he asserts. For ports, in particular, Ferrin says, costs vary according to the facility\u2019s operating plan (i.e., landlord or operator), whether it utilizes unionized or non-unionized labor, tariff rates, volume incentives, land-lease costs, congestion and the efficiency of port equipment and stevedoring services.<\/p>\n

Shippers should also perform a detailed system analysis to avoid purchasing different parts of the supply-chain process individually. \u201cThat, on paper, would seem to be less expensive,\u201d Silvano Solis says. \u201cBut in real terms, you might end up paying for the inefficiencies of a cheaper system.\u201d The byproducts of such inefficiencies include over-paperwork, storage surcharges and time delays. \u201cCertainly this will be more expensive at the end of the day,\u201d Solis says.<\/p>\n

5. \u201cDOES THE REGION I\u2019M SHIPPING TO HAVE A FAVORABLE INFRASTRUCTURE FOR CARGO?\u201d<\/h4>\n

Even the most efficient port or airport will struggle if it\u2019s located in an unfavorable region for commerce. Ferrin advises shippers to consider the region\u2019s political climate. \u201cIs it favorable as a friendly global gateway?\u201d he asks. \u201cAre state funds available?\u201d If you\u2019re floating goods, can the port handle a fully laden Panamax ship\u2014through the Panama Canal\u2014to reach markets in Asia and beyond? \u201cA port\u2019s rate structure, labor and loading-unloading capability are immaterial if you can\u2019t move cargo to and from the port very efficiently with a minimum of mode changes and \u2018cargo touches,\u2019\u201d Ferrin says.<\/p>\n

Solis concurs. Judicious companies don\u2019t just look at the seaport or airport, he says; they scrutinize the nearby rail connections, truck lines and highways to ensure the inland supply chain performs seamlessly. And a seamless transportation process, Solis says, is key to ensuring that companies keep returning to the port or airport in question.<\/p>\n","protected":false},"excerpt":{"rendered":"

Port-Wise: Five Things Shippers Should Know About Their Ports and Airports Moving a product from point A to point B… Read More<\/a><\/p>\n","protected":false},"author":62,"featured_media":13417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[3987,1],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\n(Air)Ports - Global Trade Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.globaltrademag.com\/airports\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"(Air)Ports\" \/>\n<meta property=\"og:description\" content=\"Port-Wise: Five Things Shippers Should Know About Their Ports and Airports Moving a product from point A to point B... 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