The June edition of Logistics Management magazine includes a very informative article by John Schulz. Cross-Border Update illustrates the growth and complexities of trade among the three North American nations.

Along with information about USMCA and CTPAT, the author advises that in-house logistics teams must be properly trained on how to develop and maintain a classification matrix for commodities that are shipped across borders. This matrix should include Harmonized Tariff Schedule number, Schedule B number, Export Control Classification Number (ECCN), Export License Authorization, and Country of Origin, as well as any other pertinent customs data.

For help setting up your matrix contact mitch@52.91.45.227

Dean Maciuba• Last Mile Experts

Not a Major Part of USPS Change Strategy

It is disappointing to see that the USPS has invested 6 years in a new vehicle search process with a flawed result, that does not embrace electric vehicles (EV’s) Clearly, it was not a major objective for the USPS to specify a major, future role for EV’s during the evaluative process. Most likely, the organization must have intentionally specified a limited role for EV’s during the process with potential suppliers.

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Licensed Customs Broker, International Logistics Consultant

@Dean Maciuba thanks for a good post. Perhaps USPS could use EV charging stations as a revenue source by making them available to the public….

Tight capacity in the trucking industry illustrates the impact of density on freight rates. Here is an old school example from the archives:

Or you can use a density calculator!

Let’s listen to the engineers.

As the infrastructure debate continues, here is some interesting info from ASCE (American Society of Civil Engineers). Take a look at your state’s infrastructure report card.

I thought about this recent post after meeting with a well established freight forwarder this week. They are focused right now on finding capacity for imports from Asia in order to serve their clients. The current supply chain disruptions illustrate the importance of freight forwarder relationships. Expertise in compliance and documentation is certainly important but first they need to be able to move the freight.

NLR or License Exception?

NLR (No License Required) is not always appropriate for export transactions. Here is a useful guide to license exceptions:

A “license exception” is an authorization described in part 740 of the EAR that allows you to export, reexport or transfer in‐country under stated conditions, items subject to the EAR that would otherwise require a license. 

https://www.bis.doc.gov/index.php/documents/2020-virtual-conference/2608-license-exceptions-breakout-session-virtual-conference-september-2020/file

In a recent post we discussed 3 common causes of customs delays: vague or incomplete descriptions, questionable valuations, and lack of IOR contact info on commercial invoices.

Those are the easy fixes. More difficult and frustrating customs issues involve country specific regulations that are not known prior to the transaction.

One of our more proactive clients asked Ad Hoc Logistics to research and develop a set of regulatory guidelines for 10 countries to which they export. This has helped prevent costly customs delays and time consuming follow up.

Why not be proactive when shipping to a new country? We can provide all the info you need.

Contact mitch@52.91.45.227

Mitch Kostoulakos, LCBLicensed Customs Broker, International Logistics Consultant

The article cites driver shortage as a big factor in tight capacity and vaccinations may make more drivers available. Would be interesting to learn how much of this profit is being passed along to employees.

David J. DiSanto• 1stDiSanto & Associates, Inc. Consulting in Supply Chain Analysis & Optimization

Great for the trucking industry to gain huge profits…..downside it’s really costly for the shipping community and consumers, from this perspective we hope it begins to reverse direction.

Mitch Kostoulakos, LCBLicensed Customs Broker, International Logistics Consultant

As shown in this article maintaining and updating inventory parts lists is a never ending job. If you have not already done so I recommend adding columns for HTS (Harmonized Tariff Schedule) or Schedule B codes for each part. This step will ensure that export documents and commercial invoices are accurate and help resolve any customs issues. I have assisted a number of clients with this task so reply if you would like to discuss.

Tony Rodriguez• 1stPresident & Owner, Daniel Penn Associates. LLC

Spare parts inventory control is no cakewalk. Read part two of a series by DPA’s Kenneth Staller and learn how to contain the chaos. Let us know your experiences.