News from our partner, AFI

Kompass North America partner, Association of Food Industries, has put out a report on the supply chain issues plaguing the industry and what is being done to minimize these challenges. Read it here and contact us for more information on Partnerships with Kompass North America.

Kompass North America partner, Association of Food Industries, has put out a report on the supply chain issues plaguing the industry and what is being done to minimize these challenges. You can read it below.

Association of Food Industries President’s Report

AFI continues to monitor the shipping/logistics issues plaguing member firms and continues to look for any way to provide input and participate in any efforts to seek relief.

President Biden met today with leadership at the ports of Los Angeles and Long Beach and the International Longshore and Warehouse Union to discuss supply chain challenges “and actions each partner can take to address these delays,” White House Press Secretary Jen Psaki confirmed. “Solving this issue is going to require cooperation between the private sector, including rail and trucking, ports and labor unions,” she said.

In addition to meeting with ports and labor, the administration held a roundtable today with private-sector companies, including Walmart, Home Depot and UPS, to discuss “how the largest cargo owners and shipping companies can address congestion in the transportation and logistics supply chain.”

The result was a series of public and private commitments:

  • The Port of Los Angeles is expanding to 24/7 operation. The Port of Long Beach expanded operations in mid-September. The Port of Los Angeles is now joining them by adding new off-peak night shifts and weekend hours. This expansion means the Port of Los Angeles has nearly doubled the hours that cargo will be able to move out of its docks and on highways.
  • The ILWU announced its members are willing to work those extra shifts. This will add needed capacity to put towards clearing existing backlogs.
  • Large companies announced they will use expanded hours to move more cargo off the docks, so ships can come to shore faster. Unlike leading ports around the world, U.S. ports have failed to realize the full possibility offered by operation on nights and weekends. Moving goods during off-peak hours can help move goods out of ports faster. For example, at the Port of LA, goods move 25-percent faster at night than during the day. These commitments are expected to help unlock capacity in the rest of the system—including highways, railroads and warehouses—by reducing congestion during the day.
  • Walmart is committing to increase its use of nighttime hours significantly and projects it could increase throughput by as much as 50% over the next several weeks.
  • UPS is committing to an increased use of 24/7 operations and enhanced data sharing with the ports, which could allow it to move up to 20 percent more containers from the ports.
  • FedEx is committing to work to combine an increase in nighttime hours with changes to trucking and rail use to increase the volume of containers it will move from the ports. Once these changes are in place, it could double the volume of cargo the firm can move out of the ports at night.
  • Samsung is committing to move nearly 60% more containers out of these ports by operating 24/7 through the next 90 days. 72% of U.S. homes have at least one Samsung product, from appliances to consumer electronics.
  • The Home Depot is committing to move up to 10% additional containers per week during the newly available off-peak port hours at the Ports of L.A. and Long Beach.
  • Target, which is currently moving about 50 percent of its containers at night, has committed to increasing that amount by 10 percent during the next 90 days.

Across these six companies more than 3,500 additional containers per week will move at night through the end of the year. While one report said that’s 3 percent of the average weekly volume at those ports, it’s still a move in the right direction.

Also, Trans-Pacific spot container rates have plateaued and, in some cases, pulled back, spurring speculation that container investors’ bull run has peaked and relief is on the way for U.S. importers.

An article in Freightwaves said: “The case for calling the top: Chinese container port congestion has dramatically declined over recent weeks, Chinese factories are being plagued by power outages that constrain export capacity, and U.S. consumer sentiment is faltering.

“The counterargument: U.S. port congestion remains historically high, rates were only temporarily reduced by China’s Golden Week holiday, data on declining rates is ambiguous because different indexes give different numbers, and there is a huge inventory restocking mountain to climb even after consumer sales slow.”

Want to learn more about AFI? Check out their U.S. Food Import Industry Town Meeting live and in-person on Wednesday, December 8th at Glen Ridge Country Club in NJ. Register here.

Make Time for FSVP Training

Haven’t taken the Foreign Supplier Verification Programs rule training yet? Have someone at your firm that could benefit by taking it? Your next chance is next week – Oct. 20-21 (November dates are Nov. 17-18). We’re currently able to offer the course online and continue to offer it at a price much lower than others. Get the details at www.afius.org

 

Check out AFI’s Booster profile on Kompass and contact us for more information on Partnerships with Kompass North America.

 

To learn more about our Booster program, a B2B advertising service in 24 languages, click here and check out our video below.

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