Best wishes to my former FedEx colleagues who are accepting the buyout. You have earned it!

Posted on LinkedIn today:

I came across the term “wicked problem” in the text for an International Supply Chain Management course. A wicked problem involves multiple stakeholders, each with different interests and values. As a result, there is no single common goal , no clear mission, and no universal solution. Any solution, after being implemented, will generate waves of consequences and can result in making the problem worse. A suggested framework for tackling a wicked problem consists of 4 levels of increasing complexity: Level 1- Process Engineering and inventory management. Level 2- Assets and Infrastructure. Level 3- Organizations and Inter-organizational networks. Level 4- the Macro Environment- PEST (Political, Economic, Social, and Tech). Fortunately, not all logistics problems are wicked problems. In most cases logistics problems are tactical and can be solved using Level 1 and 2 solutions. Supply chain issues are strategic and more complex so best suited to Levels 3 and 4. *Global Logistics & Supply Chain Management

Posted on LinkedIn today

Incoterms (continued) Contrary to popular belief Incoterms do not cover title to goods, ownership, or invoice payment. They do cover obligations of buyer and seller for payment for insurance, transport, export and import clearance, and division of other costs of storage or delivery. Incoterms will be updated again in 2020 by the International Chamber of Commerce.

William Cassidy  • 2nd

Senior Editor, Trucking and Domestic Transportation, The Journal of Commerce5d • EditedThe hashtag#bankruptcy of 101-year-old New England Motor Freight was a shock and a wake-up call for those who expected less volatility this year.

Mitch’s LinkedIn comment today:

Thoughtful analysis and right on target…traditional LTL carriers achieved efficiencies mostly thru managing labor costs…still important but real gains in efficiency will come via technology…

Published on LinkedIn today:

If you are planning to take the customs brokers exam in April you should be well into your preparations by now. The exam is not easy but a step by step study plan will give you confidence. I devised a simple method that worked well for me and will share it. E mail mitch@52.91.45.227 if interested.

ImagesnowMitch Kostoulakos, LCBStatus is online

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

Good move by USPS putting safety of employees first. The fact that these closure are rare illustrates the overall reliability of USPS .

Posted on LinkedIn:

World Bank Logistics Performance Index ranks US 14th for 2018. Previous rankings were 10th in 2016 and 9th in 2014. LPI 2018 ranks countries on six dimensions of trade — including customs performance, infrastructure quality, and timeliness of shipments.

The United States International Trade Commission has updated the Harmonized Tariff Schedule of the United States effective 07/01/2018.

It is a good business practice to review your Harmonized codes at least once per year to make sure you are using the most up to date classifications. For help with your codes contact mitch@52.91.45.227

https://hts.usitc.gov/current

I have previously written that export compliance is good risk management. While risk management always gets C level attention, export compliance is often a mid-management or lower level function. Fines and penalties for violations should make export compliance a basic part of risk management. Best practices, including an Export Management & Compliance Program, will reduce exposure to steep fines and penalties as described by BIS (Bureau of Industry and Security) on their website https://www.bis.doc.gov/.

If you are relying on your logistics service providers or your busy shipping department for export compliance you may be at risk. Both upper management commitment and front line training are essential parts of an EMCP.

BIS offers a number of on-line courses at no cost. Check them out under the Training and Compliance tab and get started!

Penalties

Violations of the Export Administration Act of 1979, as amended (EAA), 50 U.S.C. app. §§ 2401-2420 (2000), and the Export Administration Regulations, 15 C.F.R. Parts 730-774 (2007) (EAR) may be subject to both criminal and administrative penalties. When the EAA is in effect, criminal penalties can reach 20 years imprisonment and $1 million per violation.

Privileges. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.

contact mitch@52.91.45.227