If you follow me on LinkedIn, you have seen me opining on the parcel based, dynamic pricing environment enveloping the customers of FedEx and UPS. In more simple terms, the mega carriers are and will be taking selective rate increases on a regular basis.
Most managers or owners of small/medium companies wear many hats and usually do not have in-house logistics or compliance expertise. As a result, major projects such as implementing an Export Compliance Program become back burner issues. But doing nothing about compliance is not an option!
Let me suggest 3 spring cleaning best practices that will help you get started :
1) Scrub your parts list to make sure HTS or Schedule B codes are valid. The tariff changes periodically and we have found that every client parts list reviewed has included obsolete or invalid codes. Once identified these codes can be updated.
2) Check the CCL (Commerce Control List) to see if your commodities are listed. Exports must show the correct ECCN (Export Control Classification Number) in order to determine if a license is required. If you are automatically using EAR99 and NLR you are at risk of violation.
3) Set up procedures for checking common “Red Flags” such as denied parties lists, entities lists, and unverified lists. BIS (Bureau of Industry and Security) has up to date info on their website.
Ad Hoc Logistics can take complete these tasks or help you manage them.
I don’t understand why our corporate leaders are not willing to invest in the betterment of this country. It is time for those who get it to stand up. I, for one, as a small business owner support paying a little more taxes to support the infrastructure my business relies on, but more importantly to contribute my fair share to build an equitable and less extractive economy.
The American Society of Civil Engineers has issued it’s 2021 Report Card for America’s Infrastructure. It is an interesting read. The overall grade is C- and trending up. No one in the transportation business will be surprised that Roads scored a D.
With C- being an upward trend it shows the poor condition of our infrastructure and how much work remains to be done. In fact, the overall score would be worse if not for B and B- for Rail and Ports.
I have traveled on roads in most EU countries and found them to be in much better shape than ours. The ASCE report notes that the upward trend in overall score can be attributed to increased investment to date. No doubt that, whatever our political views, we can agree that additional investment is urgently needed. Infrastructure won’t fix itself!
The driver shortage, aggravated by the coronavirus pandemic, is reverberating throughout the trucking industry. The problem has reached the point where fleets are noting a shallower pool of independent drivers. “The available pool of independent contractor drivers is smaller than it has been historically,” Truckload carrier Marten Transport stated in its annual report, filed March 1 with the Securities and Exchange Commission.
I agree with you Dave. I’m sure DG has done their due diligence. However, a private fleet is a risky move and just as likely to add costs rather than reduce them. A couple of big questions: Will drivers be company employees with full benefits? Will the fleet have access to back hauls or will there be significant deadheading?
The transition to a new administration offers the opportunity to review federal priorities with respect to international trade policies. Reconsideration of our use of tariffs should be at the top of the list.
Freight Class. If you are a shipper it would be very wise to know and understand this process. This is the single most important factor when determining LTL rates. It is also the single largest issue when a shipper is hit for overages on a shipment. Incorrect freight classes will get you into a lot of trouble.
Small, medium, and large businesses all have the amazing opportunity to expand internationally, however, there are several steps that must be taken to ensure that your company is ready to export. the International Trade Administration shares information on getting started here: