I have accepted a position as adjunct faculty member at Southern New Hampshire University. I will be teaching International Supply Chain Management in the MBA program starting in April, 2014.

Ad Hoc Logistics currently assisting a New Hampshire electronics distributor with EEI (Electronic Export Information) filing options.

EEI has replaced the paper SED (Shippers Export Declaration) forms.

Ad Hoc Logistics is currently advising an engineering company about international trade show and conference shipments. We are researching pros and cons of using carnets and recommending carriers. Contact mitch@52.91.45.227  if you have similar needs.

Let me share some observations about the freight forwarder industry at the end of 2013 based on meetings with forwarders and shippers as well as data from trade publications. Contact us for more info.

• Modal shifts from air to ocean will continue as a cost reduction strategy.
• Airlines have improved load factor and profitability by cutting flights. This means less freight capacity overall.
• Air freight forwarders will focus on higher yielding commodities to make up for weak demand and to better utilize existing capacity.
• Shippers looking for full services forwarder with advanced technology and capabilities but still price sensitive.
• Mega forwarders have advantage in buying power, capacity, coverage, and variety of services. They may be at a disadvantage in unique local markets.
• Current ocean freight overcapacity in APAC-US lane leads to erratic rates.
• Dominated by shipping alliances ocean carriers will reduce capacity and put upward pressure on rates.
• While current spot rates (ocean) may be low they will rise in 2014.

I am working with Northern Essex Community College on revisions to their Supply Chain Certificate program for 2014. Planned modules include: Introduction to Supply Chain, Operations, Materials Management/Purchasing, Inventory/Warehousing, Transportation and Logistics, and International Trade. Details will be provided in the Spring/Summer catalog on the NECC website.

A recently completed project involved comparing Spirit Airlines with competitors Southwest and Jet Blue. I looked at a number of features and characteristics: # of Destinations, Hubs, Fleet Size, Aircraft Types, Fares/Fees/Surcharges, Frequent Flyer Programs, Domestic Market Share, and Skytrax Rank. In the low cost airline market, Spirit has only one advantage and that is ultra low fares. In all other areas Spirit ranks below both Southwest and Jet Blue. The flying public is becoming accustomed to unbundled services and new fees seem to pop up on every flight. Spirit charges for all “extras” and cites their ultra low fares as justification. Ultra low fares means that Spirit must be aggressive in controlling costs. This can lead to service issues and customer complaints reflected in Skytrax ratings. Southwest and Jet Blue are low cost airlines which project perceived value for relatively low fares. This is crucial in attracting business flyers. If Spirit wishes to expand beyond their current vacation traveler clientele they may need to adjust their business model.

Spirit Airlines Comparison

I recently analyzed the low cost airline market in Mexico, comparing Volaris and Interjet. The overall airline industry in Mexico is dominated by flag carrier Aeromexico with the largest fleet, resulting in many more frequencies than all competitors. Besides Aeromexico, there are a number of low cost and regional airlines competing for domestic passenger traffic. This competition makes it easy to fly to most cities in Mexico at reasonable fares. Low cost carrier Volaris serves approximately 30 destinations in Mexico and 12-15 in the US. Volaris is 2nd to Aeromexico in international market share. Their aggressive growth strategy and aircraft on order (47 in service , 42 on order) will enable Volaris to gain domestic market share from Interjet and possibly international market share from Aeromexico. Interjet serves more cities in Mexico (43) than Volaris but far fewer US cities. A third low cost Mexican carrier, Viva Aerobus serves 27 domestic destinations and has very few US flights. Viva Aerobus has a smaller fleet  so will need to add aircraft in order to gain market share from Volaris or Interjet.

Ad Hoc Logistics is advising an aerospace company about exports to the Middle East. Air freight and express service into the region is not a problem with a number of options and reliable transit times. The challenges are on the regulatory side as well as movement within countries. The client has experienced customs delays of mission critical shipments so we will be working on three issues:

1) Identify and engage a forwarder with strong capabilities within the region.

2) Identify country specific documents needed for entry.

3) Identify and engage customs brokers in the destination countries to ensure smooth and timely clearance.

Have been asked to serve on the Education Committee of the American Society of Transportation and Logistics for 2013-2014. The Ed Committee works on issues of certification and re-certification.

Completed work for American Society of Transportation and Logistics re-certification program. Our Education subcommittee designed and implemented triennial process for re-certification of the CTL (Certified Transportation and Logistics) professional designation.