Mexico and the US to share a customs facility

Are multinational customs facilities the way of the future? It seems counter-intuitive, but we may be forgiven for thinking so, if the new initiative pioneered by airport executives at Brownsville South Padre Island International Airport is anything to go by. From October this year, the Texan town and its Mexican neighbour Metamoros are set to share use of a dual customs hangar.

The Tijuana-Mexico border 

The $2.4 million development is currently under construction and is intended to decrease transit times within the US: once both Mexican and US customs have processed shipments in a single hangar, the shipment becomes domestic and can be delivered anywhere within the States. Given that air freight services are often employed for the most time-sensitive of shipments, this will surely be welcome news for Mexican exporters and US importers. 

Michael Jones, Business Development Manager at Brownsville, hopes it will make his airport stand out to shippers: "at any other US airport, you would have to go to one of the six designated airports in Mexico and wait there to clear customs, and that could be a process of two or three days, even a week," he commented.

Jones went on the state that this type of service was likely to grow as word of its availability spreads. While currently only a co-location exercise, the implications for the future of customs authorities are worth some thought: could the growth of such a trend encourage more bi-lateral trade agreements; would dual customs anyways privilege one domestic market over another; is this a service likely to remain particular to air freight services across the Atlantic? Let us know your thoughts!

DHL delivers family of 9 gorillas back to the wild

In the first ever attempt to return a whole family of gorillas back to their natural habitat, DHL have delivered a family of nine silverback gorillas from the Port Lympne Wild animal Park in Kent, UK to the 1000 acre Batéké Plateau National Park in Gabon. The initiative is carried out in partnership with the Aspinall Foundation as part of the conservation group's "Back to the Wild" campaign.

The gorillas, with a combined weight of 629 kg, along with no less than 1,200 kg of food and veterinarian equipment, were transported from the UK to Brussels and then on to Lagos, Nigeria on a Boeing 767. From there, they were transported to Franceville, Gabon before being flown to the national park via helicopter by the Gabonese authorities for the final leg of their journey. DHL adjusted their regular flying schedule to ensure the gorillas could be delivered in as tight a time-frame as possible. 

Djala, the head of the gorilla family (pictured) was born in 1982 in Africa's Congo basin. His mother and the rest of his family were taken by poachers before he was six months old and after many tribulations, he eventually came to Howletts Wild Animal Park in the UK at the age of four. His journey has now come full circle upon his return to the area of his birth!

Phil Couchman, CEO of DHL Express UK & Ireland commented: "It's no mean feat moving a family of nine gorillas across the world. This is an extremely important cause and a great logistical undertaking for DHL" Chairman of The Aspinall Foundation Damian Aspinall said: "The Aspinall Foundation's Back To The Wild initiative is unique and comprises easily the most ambitious reintroduction of the critically endangered species into the wild ever undertaken anywhere in the world. We are delighted that DHL have so generously come on board as our partners in this important and exciting repatriation project."

DHL launches new weekly train link from China to Poland

DHL Global Forwarding, the freight division of mail and logistics group Deutsche Post DHL, has developed a new door-to-door delivery service between Europe and China, it was announced earlier this week. In partnership with rail operator YHF logistics, DHL will offer a new train service between Chengdu in South West China and Poland, cutting transit times by 40 days compared to ocean freight. 

The new 14-day long route to Malaszewicze, Poland, costs just a sixth of the air freight cost for the same journey and, after passing through DHL's Polish hub, includes an onward route to Moscow via truck, meaning a transit of 20 days from China to the Russian capital. 

Asia Pacific CEO for DHL Global Forwarding acknowledged it may seem counter-intuitive to ship through Russia, to Poland, then back to Moscow but defended the move in an interview with Post and Parcel on the grounds that it enabled avoidance of the complex and potentially problematic Moscow rail system. "Our innovative multi-modal team has found that mixing two different modes of rail and truck and taking this route in fact cuts transit time and transport costs significantly by pre-empting and overcoming potetnial delays that be encountered when entering Moscow by rail," he said.

Bi-lateral trade between Poland and China grew 11.2% year-on-year in 2012. DHL is doubtless aware of the growing importance of China to the Global Economy and to its own future profitability. The company recently held its annual technology conference in Shanghai, China, at which the importance of the Asian market was a prime concern. The logistics provider also dedicated the opening pages of its 2012 annual report to a special chapter on China entitled, "Pioneering Future Markets".

Source: Post and Parcel

Out with the old and in with the new: FedEx retires Boeing 727 and adds 1,900 new vehicles to its flight

After declaring the end of a chapter in aviation history last Friday when it announced the retirement of its long-serving Boeing 727 aircraft, US logistics giant FedEx revealed the addition of 1,900 new fuel-efficient vehicles to its fleet this afternoon.

The retired B727 (C/O Eric Prado)

The 1,900 new additions to the fleet are lightweight, composite-body Reach vehicles, the engines and lower-weight bodies of which achieve a reduction in exhaust emissions compared to conventional walk-in vans. The new vehicles are 35% more fuel efficient than traditional vehicles in the FedEx Express fleet and will help the company realise efficiency savings at the same time as working towards its green target of reducing carbon emissions by 20% by 2020. 

A Guide to Courier Services: protecting your parcel against loss and damage

Who hasn't felt nervous about placing their goods in someone else's hands when shipping overseas? Whether you are shipping your belongings abroad in advance of a house move, delivering goods to a customer, or sending a gift to an overseas relative, your cargo is precious and your top priority will be to ensure it arrives not only in a timely manner but in exactly the condition you sent it. There are several steps you can take to do your best to ensure that this happens.

1. Choose a courier service you can trust

When you are shipping overseas, you need a service you can trust.  Using a company with long-standing experience, a well-established brand and a good global network is important. Transglobal Express works only with the top four global courier services: DHL, UPS, and FedEx and TNT: shipping with us means you'll get exactly same delivery service as if you were booking directly through these carriers- the only difference is the price!

2. Package your parcel appropriately

The best way to protect your parcel against damage is to ensure it is packaged appropriately. This means choosing the right size and strength of box and cushioning your goods sufficiently inside it. Most carriers advise that your box should be able to withstand a drop from waist height- this should give you an idea of the amount of cushioning you need. We recommend at least 5 cm between each item within the box and between the edges of the box and its contents. 

TOP TIP: take a photograph of your parcel, inside and out, before it is collected. This won't take you long at all and in the unfortunate event of loss or damage, it will be much easier for you to process any claims with evidence such as this. 

3. Take out appropriate cover

All parcels shipped with Transglobal Express are covered for a minimum of £50, free of charge. If your parcel is much more valuable, you may wish to take out additional cover for extra peace-of-mind. Then, if anything goes wrong, you won't be out of pocket. Certain very fragile goods - such as glass and pottery cannot be covered, so if you need to send these, make sure you follow step 2 as best you can! For more information about what can be covered, please see our website or contact our claims team on 0845 145 1212.

Contending with customs: advice for people new to exporting

Exporting your goods overseas can seem a daunting experience. It can be difficult to determine which regulations apply to you and which forms are applicable to your business - never mind how to fill them in!  Generally speaking, trade within the EU tends to be a simpler process, but if you're thinking of making the leap and expanding your sales beyond the European Community we have some customs tips and advice for you.

1. Inform your customer of the potential costs of Customs Clearance in advance

Typically, the receiver will be liable to pay any charges associated with Customs Clearance before your goods are released for delivery. This is called DDU (delivered duty unpaid) shipping. Most seasoned shippers are well aware of this but it's a good idea to make sure your customer knows of potential customs charges in advance- the last thing you want to do is give your customer a shock before they have even received your goods! Alternatively, if you'd prefer to pay the charges yourself, you can always opt for a DDP (delivered duty paid) service when booking UPS, DHL and TNT services through Transglobal Express. Such a service bills all charges back to you, the exporter, and usually entails a small fee. 

2. Research country-specific regulations

As well as familiarising yourself with general restrictions imposed by all major carriers, you also need to check the restrictions for your particular export country.  Restrictions can vary a lot depending on the policies and priorities of different governments, and there are also some historic and sometimes very strange trade restrictions, so you should always double-check with the relevant customs authority before implementing your export strategy. Want to send plastic flowers to Nigeria or toothbrushes to Algeria? Believe it or not, customs law prohibits the import of such items! Want to send tents to Jordan? You need a license first! The best advice? Always check! 

The best place to start when carrying our your research is the customs website of the relevant country: countries publish detailed lists of restrictions on their webpages. Customs Forum is another useful website where you can ask questions and advice of other exporters.

3. Choose the right delivery service

UPS, DHL, FedEx and TNT Express - the largest global carriers - tend to take care of customs clearance on behalf of the shipper. If you book with a reseller such as Transglobal  Express, you can enjoy the expertise and excellent international networks of these brands at highly reduced rates. But equally importantly, you can benefit from our own expertise developed from over 20 years experience in the industry. Given the fact that Transglobal ship to over 220 destinations worldwide, using a variety of the biggest and best carriers, we are unable to give definitive advice on specific customs policies, but we do know where to direct you if you need any further advice, and we are always willing to help wherever we can - personal service can make all the difference when trying to navigate what is often a daunting collection of rules and regulations!

Do you have any general customs advice to share with other exporters? Let us know and we'll publish it here- happy shipping!

Pharmaceutical sector of increasing importance to major carriers

With an annual revenue of over $1 trillion, the pharmaceutical industry is big business, and the leading global courier and freight services know it. Each of the major carriers is expanding and developing its business to cater to this sector, seeking a slice of the sales by striving to meet the logistical challenges of managing the supply chain of temperature-sensitive and highly regulated products. 

Not long after UPS opened a high-tech pharmaceutical storage and distribution facility in Hangzhou, China, DHL has launched DHL Thermonet- a new temperature-sensitive air freight service for pharmaceuticals and medical supplies. The new service is an addition to an already considerable network and service offer for pharmaceuticals, the most notable previous addition to which was the opening of a DHL  'Life Science and Healthcare Centre' in Barcelona three months ago. 

A DHL employee working at one of the DHL Thermonet facilities

The new DHL services is offered by the group's Global Forwarding, Freight branch. Roger Cook, CEO of the division, confirmed that the Life Sciences and Healthcare industry was a key sector for DHL and commented "we are heavily investing in new products and services to provide comprehensive solutions to the needs of our customers".

Sales of temperature-sensitive products accounts for approximately 25% of total pharmaceutical sales, a sizeable chunk of the industry's massive annual revenue. DHL claims that the industry's increasing shift of new products from chemical-based to biotech and speciality drugs means that the growth of the temperature-sensitive segment is expected to accelerate, generating fifty percent of sales by 2018. Carriers are demonstrating their intention to capitalise on this potential. 

But there are challenges as well as opportunities. Commenting on the specialist knowledge and capabilites required in the sector, Angelos Orfanos, President of DHL's Life Sciences and Healthcare Customer Solutions and Innovation, commented, "The current situation within the Life Sciences and Healthcare market, facing an increasingly regulated environment, demands a higher level of service compliance. By means of DHL Thermonet, we will meet our customers' requirements, enhance our cold chain activities and expand our market leading capabilities".

TNT Express to cut over a quarter of its Italian workforce

TNT Express plans to cut approximately 850 jobs from its workforce in Italy, it was announced this afternoon. The courier company currently has approximately 3000 employees in its Italian Business Unit, and is preparing to reduce this number by over 28%, to around 2150. 

The plans are a response to what TNT has termed the "harsh economic environment" in Italy and are in line with the company's overall strategy - redefined after the failed merger with UPS -  which entails the loss of 4,000 jobs across the company by 2015.

TNT has insisted that this move does not represent any intention to reduce services in Italy but is intended to secure the company's long-term market-leading position in the country. The job losses will affect 20 facilities across Italy, but TNT has stated that service levels across the whole Italian network will be maintained. 

Source: TNT

DHL celebrates fifth anniversary of 'Go Green' launch

Yesterday marked the five year anniversary of the launch of Deutcshe Post DHL's Go Green programme. DHL were the first international courier company to set a measurable climate target and, as part of the Deutsche Post DHL group, are on their way to achieving a 30% reduction in CO2 emissions by 2020 based on a 2007 base level. 

Over 8000 vehicles in the company's fleet use alternative drive systems
or have undergone aerodynamic or electrical-motor-related modifications

As well as working towards this goal via fuel efficiency initiatives and reduction of energy and fuel consumption, DHL also offers customers a variety of environmentally conscious shipment options. Demand for such green products has increased steadily over recent years. According to DHL, “more than 2.4 billion GOGREEN shipments were sent and about 180,000 tons of CO2 were offset for customers - this is about 30 percent more than 2011 and over three times as much as 2009, when the total was 704 million shipments.”

Christof Ehrhart, the group’s Director of Corporate Communications and Corporate Responsibility, affirmed that GoGreen has been a real success so far. He commented: “ "Since its beginnings, we have continuously improved our own carbon footprint and are already halfway to meeting our goal of reducing our emissions by 30 percent by 2020. Environmental protection has a permanent place in our strategy and is reflected in Group-wide guidelines regarding such issues as paper, procurement and investments. Our employees also practice sustainability throughout the year. As part of this effort, 20,000 of them around the world have already attended the 'GoGreen' e-learning course. Today's World Environment Day is a great opportunity to increase their awareness even more."  

DHL are by no means the only courier company to be concerned with environmental issues: FedEx's recently published 2012 Global Citizenship report  revealed the US courier has already achieved its 2020 target to improve fuel efficiency by 20%. UPS have won numerous awards for their environmental responsibility and is continually seeking to optimise its fleet, and invest in alternative energies, as we reported last month.  

Royal Mail research reveals massive growth in UK e-commerce

The number of online-only e-retailing business has more than doubled in the past five years from 6,700 in 2008 to 14,400 in 2012, according to a nationwide study commissioned by Royal Mail. While the number of businesses contributing to the British economy fell an annual average of 0.4% for the years covered, the number of companies selling goods online saw a staggering 21.3% average annual growth. 

Speaking of the study, Managing Director of Royal Mail Parcels Nick Landon commented: "Online-only e-retailing has become an increasingly strong area for business start-ups and is making a strong contribution to the overall UK economy. With continued growth in online shopping, we can expect more significant contributions to the UK economy in current years."

Online sales are also way ahead of the retail sector as a whole, according to a recent CEBR study of ONS data: e-retailing grew by almost 50% while the total retail sector saw only 13.6% growth. Given that increased online sales means increased demand for postage and delivery Royal Mail are set to take advantage of this increase as part of their growth strategy. Courier services resellers such as Transglobal Express are are also set to benefit from this increase, given that their highly competitive rates for services such as UPS, DHL Express and TNT can rival Royal Mail in terms of price and service, as well as offering much lower costs than customers would incur by booking directly with the courier. 

Now is a critical time for air freight, says FedEx chief.

Michael Ducker, the COO of US courier service FedEx Express, stressed the importance of air cargo at the Cargo Network Service (CNS) conference in Phoenix last month.  During his keynote address, Ducker stated that "right now is definitely a critical time for cargo".

FedEx Express COO Michael Ducker

2012 saw air freight contribute $98 billion to the global economy and fly $US 10 trillion goods internationally, but Ducker called it a disappointing year, given that cargo volumes and yield dropped 2% year  on year. 

In line with many industry commentators who have borne witness to small dips in growth in the industry since 2008, Ducker affirmed that the days of cheap fuel and high investment are over for the foreseeable future: "a new normal" has permeated the industry, he said. Financial stagnation and high oil prices are the primary factors defining the current market. 

At the same time, US markets are seeing increased competition from the emerging markets of China, Brazil and Poland as well as competition from sea carriers. Ducker stated, "I think the future of air cargo is directly tied to ocean freight, but sea freight isn't for everyone." Shippers of time-sensitive, high value goods will always depend on air freight, he stressed.

In order to face the challenges of the future, Ducker urged greater supply chain innovation and efficiency and the quicker adoption of e-freight, calling paper-based processes relics and anachronisms.