As of August 1st, 100% of all cargo moving on passenger flights will have to be screened. NNR Global Logistics is now performing 100-percent screening of outbound cargo shipments booked on passenger aircraft at 18 out of its 20 U.S. locations. This screening policy is in line with tougher requirements imposed by the U.S. Transportation Security Administration (TSA.) Andy Hadley, NNR USA's Corporate Director of Sales and Marketing said "NNR USA has made a signifi cant investment in making eighteen of our facilities CCSF (Certified Cargo Screening Facilities). Many of our competitors have not made this investment in what are deemed smaller markets and now with the August 1st deadline looming are trying to play catch-up. In late 2008 NNR USA made the decision to invest in making all put two locations CCSF facilities. We have been screening cargo for over one and a half years now and are ready for the August 1st deadline."

NNR USA also has eight facilities certified as TAPA-A which specialize in handling high value cargo. For more information on NNR’s Secure Supply Chain initiative please contact your local NNR Branch Office.

To receive more details about NNR's cargo screening services, use the form on our Cargo Screening page.

As part of NNR’s effort to continually improve the quality of our service, we are requesting customers to take a moment to answer our online Customer Satisfaction Survey.  The survey consists of 10 questions and will take less than 5 minutes to complete.  Your feedback is highly valued and appreciated!

NNR Customer Satisfaction Survey

The devastating effect of the 2008-2009 world financial crisis has been hard felt in the logistics industry. Global logistics volumes fell dramatically and the financial stability of many large common carriers became questionable. Ocean carriers cut significant capacities, airlines reduced flights and road transport carriers were forced to park their fleets in the hope that global trade would rebound. The good news is that this rebound may be upon us now. Macro economic data and trade volumes have been indicating a gradual recovery from the dismal results of 2008 and 2009. Many industry experts are forecasting a very gradual recovery in logistics volumes.  Several carriers are already seeing increases in shipment activity.

According to HIS Global Insight, the economic recovery is expected to generate a significant growth in the shipping volumes around the world with APAC to North America routes leading the way. In 2010 the average global growth rate is expected to reach 8.5% and hit 10% for APAC to North America bound cargo volumes. For 2011 the growth rate is expected to be slightly lower, but it is still expected to be around 7.8% mark.

However the recovery is not going to be equally strong in all regions. According to HIS report, the strongest growth is expected on Trans Pacific Routes while Trans Atlantic volumes are only expected to rebound to 2007 levels by 2013. APAC to Europe volumes are expected to build on the previous year’s growth, but Europe to APAC shipments are expected to take a little longer than previously expected.

All signs of recovery are present; market indexes are up, currencies have stabilized and orders for durable goods are steadily increasing. Global demand is rising and the world’s leading shipping lines are eager to restore the pre crisis level capacities that they had to cut when the world trade collapsed.

APL is reporting a 32% volume increase in handling of the 40’ containers with an average of 12% increase in revenues per shipped container. According to the information released by the company, it handled 204,400 equivalent units for the period of 4 weeks; period ending on April 2. This is an 8% increase from the previous 4 week period and represents a 32% increase on year to year bases. Capacities of bulk (liquid and dry) shipping are expected to reach pre crisis levels by the end of the year, experiencing on average 9% growth in 2010 and staying stable for the foreseeable future.

The situation is also improving for air cargo. According to the director general of IATA, Giovanni Bisignani, the volume of the airfreight handled on year to year basis has increased by 28.1% worldwide. However, according to the report released by the organization, the effects of the global economic crisis have not fully disappeared. Passenger and cargo volumes are still down by 1% from the highs of 2008. Even though the economic collapse has hit hard the air freight industry, almost all regions of the world have shown a steady pace of recovery, with the Latin America emerging as a leader with an impressive 47.9% growth rate followed by the US, with an average of 32.2% increase in shipments.

We have come a long way from the low points of late 2008 and early 2009. It was an unprecedented challenge to the logistics industry globally. While the process of the full recovery is not going to be an easy one, we remain very optimistic that international trade volumes and logistics volumes will continue their recover to pre-recession levels.

This year has been turbulent for European markets. Just as the EU commission was preparing to start discussions on Iceland’s acceptance in to the economic bloc of 27 nations, the volcano erupted and caused the lock down of an entire European airspace.

Nobody could have predicted the event but the consequences were enormous. Thousands of passengers were stranded in airports unable to get to their places of destination, air cargo sat in warehouses waiting for the airspace to be opened and thousands of manufacturers were forced to close the assembly plants due to the lack of vital manufacturing components. Among them was one of the best known auto manufacturers in the world, BMW.

According to the director general of IATA Giovanni Bisignani, airlines have been the most affected, with an estimated loss of $1.7 billion during the 6 day lock down. He applauded the decision of the EU governments to compensate the airlines and stressed the urgent need to reform the EU travel system. He highlighted the need of creation of a “single European sky”, that envisions a European network manager, functional air space blocks and a unified framework to maintain efficient operation of the system. The measure is expected to save $5 billion in overall operational costs and reduce the carbon emissions by 16 million tons a year.

Besides the unified management system, he highlighted the need for the contingency plans and systems of communication and transportation in the events similar to the Icelandic volcano. According to Bisignani, the volcanic eruption exposed the inability of the current transportation system to deal with the natural disasters.

The April standstill in the European skies highlighted the importance of the aviation industry in the everyday lives of Europeans. It showed that it is a vital lifeline for the economic and social well being of the citizens of more than 3 dozen countries, and it is in a desperate need of reforms to make sure that the events of April 2010 will never be repeated.

In the age of globalization, air cargo has become a vital component of successful economic performance. Today’s consumers demand higher quality goods and they want them delivered faster than ever before. Delayed flights and grounded airplanes mean that companies that rely on fast shipping can no longer deliver goods and services and are forced to forfeit the revenues.

This situation has highlighted key challenges the EU must grapple with to address future disasters in a coordinated way. Unlike the USA which has straightforward control over its own airspace, EU member countries must work together in concert to manage theirs. EU transport ministers will be meeting on May 4^th to discuss creation of new regulations to improve the air traffic management of the EU airspace. If the system is created successfully, North American and Asian countries are expected to follow the example and synchronize their systems for improved efficiency.

Even though the new air traffic management system represents a major challenge that the European countries will try to confront, it is expected to bring a much needed effectiveness and efficiency that current EU system critically lacks.

On Wednesday JAL announced many revisions to its flight schedule which will occur during the second half of 2010. Analysts are predicting that JAL could post an operating loss of about US$1.7 billion for the current fiscal year which ends on March 31, 2010.  JAL hopes by restructuring its flight capacity it can return to profitability as swiftly as possible.

JAL has decided to discontinue services on 15 international routes with 86 weekly roundtrip flights.  Overall, international passenger capacity will be reduced by 40% compared to fiscal year 2008.  Previously JAL had also announced discontinuation of its freighter service.  These combined reductions will have a significant impact on Asia Pacific air freight capacity.

Additionally JAL will be increasing the number of international flights operating out of the Haneda Airport in Tokyo. Haneda is closer to metropolitan Tokyo than Narita.  Currently 5 international flights are operating in Haneda and this will be increased to 14.

For details on which flights are affected, please see Japan Airline’s official press release here: http://press.jal.co.jp/en/release/201004/001531.html

Much has been written about the world economy, its major players and emerging markets. Speculators have been losing money and making fortunes based on the steps developed nations are taking to avoid another devastating blow to the world’s economic activity. Even after global recession, there is still no competitor to the USA in terms of economic volume and influence in today’s world. It has a 14 trillion dollar economy, which accounts for 25% of world GDP.

But the picture is gradually changing. China continues to grow as a world leader in manufacturing with economy of 4.32 trillion. India’s economy is experiencing strong growth along with its population which has now reached 1.2 billion people. Brazil, the largest economy in South America, is also becoming an economic force to be reckoned with. These key emerging markets are creating new opportunities for well positioned companies to harvest the benefits of the “new era of global markets”.

China is viewed as one of the major challengers of US dominance. Its GDP has been growing 6% a year, even when the world was in standstill. Part of the reason why China has enjoyed this unprecedented growth is its smart but very unpopular monetary strategy that keeps its currency undervalued and makes goods produced in China more attractive to US and EU consumers. It is simply cheaper to manufacture in China than it is in US or EU. In addition to manufacturing advantages, China is the biggest US debt holder and it is the country that holds world’s largest foreign currency reserves, mainly in USD. The Chinese and US economies are vitally linked and need each other to continue their growth.

In terms of world trade, in India and China there are close to 2.5 billion people that are willing to work for much lower prices than workers in the US and EU. This presents an enormous opportunity for manufacturers and the logistics industry. As long as the goods are cheaper to manufacture in Asia, global freight demand will most likely recover. As China and India’s domestic GDPs climb, it creates new demand for US and European products. Thus signs are positive that the gradual global economic recovery will continue to stimulate trade and increase logistics volumes.

The logistics industry has long enjoyed the benefits of globalization and the effects of open markets. Changes that are taking place today are opening new windows of opportunity for multinational supply chains. Improving social and economic conditions in different parts of the world, will only contribute to a stronger demand and increased cargo flow.

After the unprecedented shut down of Europe air traffic due to an ash plume in Iceland, flights are finally resuming.  Eurocontrol estimates that by Wednesday April 21, 75% of normally scheduled flights will be operational again.  However it will take weeks for the enormous backlog of air freight to clear up.  Some airlines are still placing restrictions on the type of cargo they are moving. IATA estimates that the flight bans have cost the airlines more that $1.7 billion as of April 20.

This form may be used pursuant to 19 CFR 103.31, which allows importers, consignees, and shippers to file certifications for confidential treatment for certain inward and outward vessel manifest information, such as importer and/or shipper names and addresses. In addition to electronically filing certifications, certifications can be mailed to: Disclosure Law Officer, Headquarters, U.S. Customs Service, 1300 Pennsylvania Avenue N.W., Washington, DC 20229.

According to 19 CFR 103.31, there is no prescribed format for a certification; however, the certification shall include the importer's/consignee's/shipper's Internal Revenue Service (IRS) Employer Number, if available.

Confidential Treatment May be Requested for Inward and/or Outward Manifests

With respect to inward vessel manifests, 19 CFR 103.31 provides that an importer or consignee (or their authorized employee, attorney, or official) may submit a certification for confidential treatment of:

· the importer or consignee names and addresses (including marks and numbers which reveal these names and addresses); and

· the names and addresses of all of the shippers to such importer or consignee.

For information appearing on the outward manifest, 19 CFR 103.31 allows a shipper (or their authorized employee or official) to submit a certification for confidential treatment of the shipper's name and address.

Fields That Need to be Completed on CBP’s New Web Form

CBP’s web form can be used for inward and/or outward vessel manifest confidentiality requests. The web form requires the following fields to be completed:

· requestor’s name, address, phone number, email address, and role

· relationship of party making request: first party, on behalf of self or company, or third party representative or agent

· date of submission

· the type of confidentiality requested (inward, outward, or both)

· whether the requestor is an individual importing personal effects or household goods, or other

· the tax ID number

· variations of names to be protected

Certifications Valid for Two Years Only

Both initial and renewal certifications are valid for a period of two years only. Renewal certifications should be submitted at least 60 days prior to the expiration of the current certification.

Info Covered by Certification May Not Be Published by the Press/Included on CDs Sold to the Public

Although 19 CFR 103.31 allows accredited representatives of the press, including newspapers, commercial magazines, trade journals, and similar publications, to examine, copy, and publish certain vessel manifest and summary statistical information on imports and exports, any information covered by a confidential certification may only be examined and copied by the press; it cannot be published. In addition, information covered by a confidential certification will not be included on the CD-ROMS of Automated Manifest System (AMS) data that are sold to the public.

Confidentiality web form:

http://www.cbp.gov/xp/cgov/trade/automated/automated_systems/ams/vessel_manifest_confid_form.xml

For additional information and guidance, please feel free to contact  your local NNR representative.

On March 25, 2010 Japan Airlines announced that it will discontinue all freighter service by October 2010.  JAL will move toward a new cargo business model which solely utilizes cargo belly space on JAL’s passenger flights.  JAL currently operates 10 747-100 freighters and plans to remove these aircraft from it’s fleet.

JAL is the sixth-largest air freight carrier in Asia, and this move will undoubtedly further impact air freight capacity in the Asia Pacific region.  JAL had been seeking to merge it’s cargo operations with Nippon Yusen, but merger talks ended early in March.

Green strategies can add to the corporate bottom line. It is a perfect “win win situation” by improving the environment and generating profits at the same time by reducing costs and enhancing your brand image. The opportunities are being accelerated as governments around the world create incentives to stimulate green technology advances. In the United States, the American Recovery and Reinvestment Act of 2009 allocated approximately $75 billion toward clean energy initiatives. Local and state governments are starting to create the same incentives on a smaller scale. Companies are scrambling to take advantage of these opportunities through the development of new technologies that will allow businesses to reduce their energy consumption, decrease the costs of fuels, reduce waste and become a more sustainable, carbon-neutral organization.

The possibility of having CO2 emission limits or penalties pushed down to companies is getting closer to reality. The Copenhagen Accord created in December 2009 both acknowledged the problem of climate change and states that “deep cuts in global emissions are required according to science”. Developed countries committed to emissions reduction targets by 2020. Developing countries committed to implementing mitigation actions to slow their growth in emissions. There are still many obstacles to be overcome before specific legislation is implemented, but the commitments could conceivably create a bonanza of opportunity for green technology companies. At the same time it could result in an explicit cost on every corporation’s income statement for CO emissions also known as a “Carbon Tax”.

A particular product’s environmental impact consists of a complex web of manufacturing processes, power consumption, and transportation of components and finished goods. By incorporating carbon reduction into their overall SCM strategy, companies can help reduce their environmental emissions footprint, strengthen their brand image, reduce costs and develop competitive advantages. Therefore, companies are looking for new approaches to managing carbon effectively — from sourcing and production, to distribution and product afterlife.

When assessing your firm’s carbon footprint, you must start from the upstream purchase of production materials to the delivery of the finished product to the customer and the packaging waste that is left.  However, the actual transportation of goods most likely creates the highest carbon impact in your supply chain.  NNR is now offering a free white paper to get you started on analyzing your organizations logistics emissions.  You can obtain a copy of the report here:  Managing Logistics Emissions Whitepaper.