USA West Coast Port Dispute - Latest News

Good afternoon

Seems we finally have some positive news to report after months of disruption on the West Coast of the US - but it will take 2-3 months for ports like LA and Long Beach to get back to some sort of normality.

Below is an excerpt from a bulletin we've just received.

After 10 months of negotiations the International Longshore & Warehouse Association ILWU) and the Pacific Maritime Association (PMA) finally reached an agreement on a new five-year contract.  Although there appears to be lots of press about this matter there has not been any details released other than the new deal will include a new arbitration system.

But the important part is that the ILWU went back to work, full steam on Saturday, February 21, 2015.  It is undetermined how long it will take to clear up the congestion that has been created from the slowdown.  Although the agreement has been reached it still has to be ratified by its members, but all articles appear to indicate that ratification is expected.

It goes without saying that the slowdown and congestion has resulted in a significant economic impact that may be long lasting.   It took third parties like the National Retail Federation and other organizations to pressure Congress and the White House to finally send Labor Secretary Thomas Perez, last week to break the stalemate,  that the Federal Mediation and Conciliation Services (FMCS) was unable to resolve since the beginning of January.

Although the contract settlement is a positive note after months of slowdown, It remains to be seen how quickly things will clear up.  Drayage companies have already experienced seasoned drivers leaving the workforce resulting in a shortage of drivers.  Additionally, it is uncertain whether the equipment arrangements will improve or remain a sore point with truckers.

It appears that only time will tell.  For interested readers, we expect that details of the contract to be revealed after it has been ratified.  But one thing for sure, it is finally good to report that there is a light at the end of this tunnel. 

Kind Regards

Andy
Andy Cliff
Director

Straightforward Consultancy Ltd
4, Beckett Drive
Winwick Park
Warrington
Cheshire
WA2 8XJ

Tel : 07934 443492
Email : andy@straightforwardconsultancy.co.uk
Web : www.straightforwardconsultancy.co.uk
Blog : http://straightforwardconsultancy.blogspot.co.uk/
Twitter: @AndyCliffSCL
Linkedin: http://uk.linkedin.com/pub/andy-cliff/1a/43/72
Skype: andy.cliff1@skype.com

Our Article On Fuel Surcharges Makes The National Press!

Good afternoon All

You probably know by now that here at Straightforward Consultancy (SCL), we're always trying to see things from the customer's point of view in what can seem to be (is) a pretty complex and confusing industry, and most customers wouldn't really know where to start when challenging highly contentious matters such as fuel surcharges and many wouldn't know how their total freight cost is built up what with all the different line items, charges, acronyms and industry terminology.

So I feel it's for a company like SCL to speak up and of course we're in an ideal position to do that, as we're completely independent, and so we can speak freely.

I also sometimes feel that no one speaks up for the small-medium sized importers and exporters who don't have the luxury of in house experts, shipping manages, logistics managers and supply chain managers etc and this is where we fi in.

With that in mind, I decided to write an article for the national press and it's since been published by the industry leading publication, Lloyds Loading List/IFW which sends out a daily bulletin as well as publishing in print also.

Below is the link to the article and I hope you find it to be interesting.

http://www.lloydsloadinglist.com/freight-directory/adviceandinsight/Fuel-surcharges-–-a-level-playing-field/61748.htm

Kind Regards



Andy Cliff
DirectorStraightforward Consultancy LtdEmail : andy@straightforwardconsultancy.co.uk
Web : www.straightforwardconsultancy.co.uk
Blog : http://straightforwardconsultancy.blogspot.co.uk/
Twitter: @AndyCliffSCL
Linkedin: http://uk.linkedin.com/pub/andy-cliff/1a/43/72
Skype: andy.cliff1@skype.com

USA West Coast Port Dispute - finally President Obama sends in the Cavalry!

Afternoon All


Please see attached latest update, Mr Obama has finally listened and sent in the Cavalry…in the shape of Tom Perez, US Labor Secretary. There are now 33 vessels sitting in the bay, awaiting unloading at LA/Longbeach…!

This dispute has been dragging on for 9 months now and is clearly harming the US economy and adding huge costs to US importers who are forced to pay extra costs to import through LA/Long Beach or make costly divertions into other unaffected ports such as Houston. This is what we're doing for one of our large US customers.

http://www.lloydsloadinglist.com/freight-directory/news/Obama-steps-in-as-fears-grow-of-US-west-coast-ports-shutdown/61740.htm?utm_source=Lloyd%27s+Loading+List+Daily+News+Bulletin&utm_campaign=0fbcd7ad3f-Wed_30_July7_30_2014&utm_medium=email&utm_term=0_1a5c244239-0fbcd7ad3f-256747097

 

Kind Regards

Andy
Andy Cliff
Director

 


Straightforward Consultancy Ltd
4, Beckett Drive
Winwick Park
Warrington
Cheshire
WA2 8XJ

Tel : 07934 443492
Email : andy@straightforwardconsultancy.co.uk
Web : www.straightforwardconsultancy.co.uk
Blog : http://straightforwardconsultancy.blogspot.co.uk/
Twitter: @AndyCliffSCL
Linkedin: http://uk.linkedin.com/pub/andy-cliff/1a/43/72

Taken a look under the bonnet of your international freight & logistics recently?

Good afternoon All

I was driving down the motorway recently and an interesting thought came to mind which connected the world of international freight & logistics to the cars we drive today.

Most people would agree that cars are becoming more and more complex, and even basic servicing is beyond most of us, either for fear of breaking something, invalidating the warranty or if we're brave enough to consider it - for not having the specialist tools or expertise to carry out the job ourselves.

We're therefore pretty resigned to the fact that if we want our car to remain reliable, safe and efficient that we should entrust the work to experts, qualified motor vehicle technicians, who spend every day of their life working on them.

And that's when I had the thought - logistics is a very specialised field too, however many companies never give their logistics model a service, safety inspection or winter safety check!

In truth, the supply chain may work ok service wise but the chances are, that just like your car, its performance and fuel consumption have been getting gradually worse over time. Many customers just accept that the freight or duty costs are "what they are"...and checking freight invoices is not something that many customers are qualfied to do or enjoy doing, quite understandable given the number of different charges and acronyms used!

So often, their challenge is that even though they know their supply chain really does need an overhaul, they wouldn't know where to start in researching better or more cost effective alternatives, and in many small to medium sized companies, they really do not have the resources or expertise to carry out a professional logistics RFQ and selection process.

We generally work with small-medium sized UK importers and exporters who spend £50-£500K per annum on air and ocean freight costs and most of our customers so far had the very same dilemma, quite understandable in small-medium sized companies who have very flat organisational structures and often little in-house expertise.

Their initial concern is that they could not afford to employ consultants on a traditional time based fee model and so we operate on a results based fee model which generates significant freight savings (average 35% across all clients since 2009) and leaves the client with the lion's share of the cost savings and a leaner, more customer focused logistics model.

We carry out the whole process for the customer from an initial assessment onto the RFQ, selection and then implementation, and then managing the new freight model for them to ensure rates are charged as agreed, services are monitored and rates are re-negotiated to ensure their new costs are kept under tight control, and most customers emply us long term to manage their freight model and keep it sharp, competitive and supported by experts.

We offer a free no-obligation meeting to importers/exporters in the North West so we can explore what opportunities there may be and we have some excellent testimonials, many of which are quoted on our website and LinkedIn.

So the next time you think that your car needs a service, consider whether your supply chain would benefit from the same expert attention, you'll be glad you did.

Kind Regards


Andy Cliff

http://www.straightforwardconsultancy.co.uk/