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www.globaltrademag.com JULY - AUGUST 2018 3
CONTENTS

ON THE COVER
7th Annual Best Cities for Global Trade 26 36 WE CAN’T CONTAIN OURSELVES
Not until we unveil the top 50 North American
container ports..

FEATURES SITE SELECTION

18 INTERMODAL EXPO
Get the highlights and takeaways from this year’s
IANA Intermodal Expo.
57 EMPOWERING COMMUNITIES
Utility companies are energizing economic development
and bringing a new layer to the site selection process.

26 BEST OF THE BEST

See the locations we’ve selected as the top cities in
the nation for global trade.

4 NOV-DEC 2018 www.globaltrademag.com

Whether it’s across town or halfway around the world, with every shipment and every project, our customers
place their trust in our hands. My hands. Because at some point, every piece of business I touch becomes
a personal responsibility. It’s up to me to keep costs down, performance on schedule, and quality at a
premium. Someone’s business is riding on it. And I won’t let them down. I am

pilotdelivers.com / 1-800-HI-PILOT
 CONTENTS
Business Travel
C

LEAD STORIES
64
M

Ocean Logistics: Carriers HELLO, HONG KONG Y

44
There’s more to Hong Kong than bright lights, big city.
CARRIER EXCELLENCE
CM

MY

See our picks for the most cutting-edge ocean carriers

as shipping looks to the future. DEPARTMENTS CY

CMY

9
3PLs
ROLLING WITH TARIFFS
48 AFTER NAFTA
K

Pedego Electric Bikes owner talks about moving

3PLs, rail and truck carriers you can count on to deliver manufacturing from China.

12 DATEBOOK
to Canada and Mexico.
Education Our picks for the best international trade shows.

53 MOVING BEYOND THE HYPE

Understanding the Supply Chain MBA and deciding if
14 DISPATCHES
Happenings from the global tradeosphere.
it’s right for you.
Banking
22 NEWS VAULT
55 DIGITAL AT THE SPEED OF COMMERCE
The digitalization of trade finance is pushing forward
DHL Global Trade Barometer predicts continuing
growth, but at a slower pace.
at its own pace.
Air Cargo Logistics

62 A CHANGING RELATIONSHIP
Carriers are looking to have a more direct approach
with cargo owners.

6 NOV-DEC 2018 www.globaltrademag.com

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DEPARTMENTS / INDUSTRY EXPERTISE

ROLLING WITH TARIFFS

PEDEGO ELECTRIC BIKES OWNER ON
WHY HE IS MOVING MANUFACTURING
FROM CHINA TO VIETNAM AND TAIWAN

BY DON DICOSTANZO

I
n 2008, my best friend Terry
and I were at lunch talking
about what we wanted to
do with the rest of our lives.
We were both fiftysomething serial
entrepreneurs who were in between
ventures. Friends since college, we
both loved cycling but hated hills.
We loved the concept of electric
bicycles but hadn’t found a really
great electric bike. So, we decided
to create our own. Over lunch, we
designed our first bike on a napkin.
And Pedego Electric Bikes was
born.
Flash forward 10 years. Pedego is
now the No. 1 electric bike company
in the United States. Our bikes
are sold in more than 100 Pedego-
branded stores in 20 countries. Our
revenues have grown 76 percent in
the past two years. We were at the
top of our game.
Then there was a game changer.
In August, the U.S. government
enacted a 25-percent tariff on
nearly 300 Chinese-made products,
including electric bikes. The tariffs JOHN GILHOOLEY
affect every Chinese-made bicycle,
electric or not, as well as nearly
U.S. Trade Representative’s panel would double the price of an electric
5,000 other Chinese-made goods
to protest bicycles being on the bike to build it here.
in a wide variety of industries,
tariff list because they did not fit I wasn’t alone in testifying. An
from aluminum and steel to farm
equipment and baby cribs. Our the goals of preventing China from
story is just one example. stealing intellectual property (there PEDAL ASSIST
As early as June, there were is no intellectual property on bikes)
“While I’m a big believer that our government should be run like
rumblings coming from Washington or bringing bike manufacturing a business and that leveling tariffs is, in theory, a good idea, the
D.C. about possible tariffs on back to the United States. There is U.S. cost of Chinese-made goods is likely to increase dramatically
in the United States,” says Don DiCostanzo, CEO and co-founder
Chinese-made electric bikes. On no way to manufacture affordable of Pedego Electric Bikes.
July 23, I testified in front of a bicycles in America. In fact, it

www.globaltrademag.com NOV-DEC 2018 9

THERE IS NO WAY TO MANUFACTURE AFFORDABLE BICYCLES
IN AMERICA. IN FACT, IT WOULD DOUBLE THE PRICE OF AN
ELECTRIC BIKE TO BUILD IT HERE.
attorney for the Trek Bicycle Co. of
Wisconsin, one of the world’s largest
bicycle companies, was also there
as well as a representative from
People for Bikes, a nonprofit devoted
to increasing cycling in the United
States.
We weren’t just there for our
companies; we were there to help the
entire bicycling industry. We argued
that tariffing bikes would accomplish
none of the tariff ’s goals and would
greatly hurt the bicycle industry by
increasing costs for every type of
bicycle: from inexpensive kids bikes
to high-end road bikes as well as the
growing category of electric bikes.
We were each given five minutes
to speak, but unfortunately, our
testimonies fell on deaf ears. The
first tariff went through on Aug. 23,
a week earlier than expected. We
had two containers from China come
into port the next day, costing us
more than $100,000 in tariffs that
we hadn’t expected. Luckily, our
volume of summer sales allowed us to
withstand this blow, but it had to be a
one-time thing.
We had already planned our
expansion to Vietnam in response
to the European Union’s 83 percent
tariff on Chinese-made electric bikes,
which was announced in the spring.
With the August confirmation of U.S.
tariffs on Chinese-made bikes, we
decided to move our manufacturing
entirely out of China. In addition to
moving production to two factories in
Vietnam, we also are manufacturing
at a second factory in Taiwan. Both
Vietnam and Taiwan are no-tariff
countries.
10 NOV-DEC 2018
Moving our manufacturing out
of China doesn’t mean we won’t
pay tariffs. We will still pay tariffs
on Chinese-made bike parts. For
example, one part that is almost
entirely made in China is the throttle,
a part that is on every single Pedego
electric bike.
The number of Chinese-made parts
on our bikes vary by the model. For
example, our Pedego Interceptor
Cruiser is made of about 80 percent
Chinese parts while our newest bike,
the Pedego Conveyor commuter bike,
is made of only about 20 percent
Chinese parts. To further reduce the
impact of the tariffs, where possible,
we will source more of our parts from
tariff-free countries outside of China.
We have always sourced bicycle
parts from about a dozen countries
worldwide in an effort to utilize
the most high-quality components
available. For example, our new
Conveyor is made from parts from 10
countries including Japan, Germany,
France, Indonesia, Italy, Czech
Republic, Taiwan and the UK, all of
which are currently free from bike
tariffs.
While I’m a big believer that our
government should be run like a
business and that leveling tariffs is,
in theory, a good idea, the U.S. cost
of Chinese-made goods is likely to
increase dramatically in the United
States. For example, our average
electric bike costs $3,000. Adding 25
percent to cover the cost of the tariff
would bring the cost to $3,750, a huge
increase for the customer. However,
our foresight in planning our move
to Vietnam and luck in being able to
www.globaltrademag.com
make it happen quickly has enabled
us to keep our prices fairly stable.
Our entry-level electric bike remains
priced at $2,299, the same price as it
has been for four years. We did not
increase prices on our newest bikes,
which includes the Pedego Elevate
electric mountain bike. Our mid-
range bikes had a modest increase of
just 8-10 percent.
However, just as we thought we
were out of the woods, the U.S.
announced a new tariff on bicycle
accessories of 10 percent that went
into effect in September. These
tariffs aren’t just on bikes or even
recreational products. In fact, the
U.S. is now tariffing $250 billion
worth of Chinese-made products in a
variety of industries, accounting for
more than half of the Chinese goods
coming into America.
All companies that manufacture
products on the tariff list must figure
out a solution. If they stay in China
and incur the tariffs, do they increase
prices? Do they cut quality? Do they
simply eat it? Or, like us, do they
simply move away? n
Don DiCostanzo
is the CEO and co-
founder of Pedego
Electric Bikes, the
No. 1 electric bike
company in the U.S.
according to Navigant
Research. Email him
at Don@Pedego.com. And see Global
Trade’s 2015 cover story on Pedego at
www.pedegoelectricbikes.com/global-
trade-magazine-peddling-to-a-global-
market.
 GO WHERE YOUR BUSINESS
IS LITERALLY GROWING!

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 DEPARTMENTS / DATEBOOK
NOV. 1-3
Terminal Expo 2018
The Passenger Terminal Industries,
Equipment and Technologies Exhibition
gathers global private companies,
government agencies, senior level
professionals, technologies and ideas in a
special platform to dominate the terminal
industry.
Istanbul Congress Center, Istanbul, Turkey;
www.terminalexpo.com
NOV. 6-7
LogiChem 2018
Supply chain, logistics, and transportation
management executives in the chemical
manufacturing sector discuss industry
trends; chemical logistics, transportation,
and distribution challenges; and how to
accelerate the digitalization of the chemical
supply chain.
The Westin Princeton at Forrestal Village, Princeton,
New Jersey; logichemus.wbresearch.com
NOV. 6-7
Logistics CIO Forum
Industry experts and thought leaders
provide blueprints for tackling the
most important information technology
challenges in the logistics industry.
Participants come from DHL, UPS, Cisco,
Werner, Americold and others.
Austin Marriott South, Austin, Texas; events.eft.com
NOV. 15-16
Supply Chain Strategy and
Management
Logistics and supply chain professionals
discover the next big trend in supply chain
strategy and the key skills required to be
successful.
MIT Sloan Executive Education, Cambridge,
Massachusetts; bit.ly/MITsupplychainstrategy
NOV. 27-30
Economic Forum Generescence
(FEG Dakar)
This annual economic event promotes
business in Africa while soberly pointing
out the problems of investing there.
Expected to register are 1,500 economic
12 NOV-DEC 2018
actors from 15 Asian, African and
European countries, each drawn by the
theme, “Investments in Africa: Senegal
Gateway to African Markets.”
Dakar, Senegal; www.forum-generescence.org
NOV. 28-30
X2 Cold Chain
The Asia Cold Chain Show hosts
companies connected to agriculture, food
and beverage, pharmaceutical, retail,
chemical and many others that rely
on cold storage, material handling and
temperature-controlled logistics.
BITEC, Bangkok, Thailand; asiacoldchainshow.com
NOV. 29-30
RailTrends 2018
Rail industry professionals bat around the
state of the industry, from today’s economic
operations and directions in rail to the
ways to achieve growth at lower costs.
New York Marriott Marquis Hotel, New York, New
York; railtrends.com
JAN. 20-22
Retail CEO Forum
Limited to 100 hand-selected retail
industry executives, this elite gathering
offers meetings, networking and the
exchanging of ideas. The most influential
U.S. retail and product manufacturer
CEOs, along with a few select members
of their C-suite teams, attend, to share
business insights, assess trends and tackle
the critical issues facing the retail industry
today and in the future.
Ritz-Carlton, Amelia Island, Florida; rila.force.com
JAN. 21-25
OPEX Week: Business
Transformation World Summit 2019
At the 20th annual OPEX Week,
operational excellence and business
transformation executives focus on
aligning transformation strategy, OPEX,
and process architecture; 3M’s value-
driven global transformation; harnessing
intelligent technology solutions and process
reengineering.
Omni Orlando Resort, ChampionsGate, Florida;
opexweek.com
www.globaltrademag.com
JAN. 21-23
2019 Transportation Summit
National Industrial Transportation
League brings logistics professionals
together to get a highway transportation
update and learn trends in rail and
ocean transportation; navigating the
intergenerational workforce; rail, ocean,
and highway freight transportation
challenges; and energy trends and outlook.
Hilton Palacio del Rio, San Antonio, Texas; nitl.org
FEB. 3-5
Georgia Foreign Trade Conference
Georgia Ports Authority brings together
senior-level shippers, maritime executives,
senior managers and decision-makers,
who discuss current and future market
conditions and growth opportunities;
challenges facing shippers, carriers, ports,
terminals, and the maritime community;
changing legislation; and new technologies
impacting global trade.
The Cloister, Sea Island, Georgia; gaforeigntrade.com
FEB. 22-27
X2 Conference 2019
X2 Logistics Networks’ sixth annual event
includes massive networking, the always
spectacular Gala Dinner, a pool-side
cocktail reception at the “X2 Beach House”
and a mysterious event called “Cargo
Weekend” that was apparently dreamed
up at the 2018 X2 Conference.
Marriott Marquis Bangkok, Bangkok, Thailand;
x2conference.com
FEB. 24-27
Retail Supply Chain Conference
2019
Retail Industry Leaders Association brings
together stakeholders in the retail supply
chain for best practices in a changing retail
landscape. The supply chain’s key role in
serving customers and leveraging analytics
for supply chain advantage are among the
other topics to be discussed.
Gaylord Palms Resort & Convention Center, Orlando,
Florida; rila.org
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 DEPARTMENTS / DISPATCHES
Eric the Rhino Embarks On Global
10,000-Mile Mission to Find Love
W
hat does it take to get an
8-year-old black rhino
from sunny San Diego,
California, to the African Serengeti?
Global logistics.
After spending his entire life at
the San Diego Zoo Safari Park, Eric
the rhino was selected to move to
Tanzania for a starring role in a
breeding program aimed at saving
the critically endangered species from
extinction.
If successful, Eric will be pairing
with a female called Laikipia, who
was transferred to the Serengeti
from an animal park in the United
Kingdom over a decade ago. Her male
companion was killed in a fight with a
bull elephant in 2009 before she could
produce a calf, so the long search for a
new partner began.
The logistics project to move Eric
14 NOV-DEC 2018
was coordinated by UK-based animal
transport specialist Intradco Global on
behalf of the Singita Grumeti Fund, a
Tanzania-based wildlife conservation
non-profit. They relied on a Qatar
Airways Cargo Boeing 777 and
Airbus 330 freighters, with the rhino
traveling in a special pallet containing
his feed and water.
Eric was accompanied by four
attendants, including a wildlife
veterinarian, a veterinary technician
and rhino habituation expert. The
temperature on the aircraft was
carefully controlled at all times to
ensure the animal did not overheat or
become stressed.
The route halfway around the
world took Eric from airports in Los
Angeles (LAX), Liege (LGG) and
on to Doha (DOH), where he was
transferred to a second Qatar Airways
www.globaltrademag.com
AMI VITALE
Cargo aircraft for his onward journey to
Entebbe (EBB). Upon touching down in
Uganda, the rhino was carefully moved
to a chartered AN-74 aircraft for the
final flight leg to the Serengeti National
Park.
“When transporting a cargo that’s
worth its weight in gold, you want to
know that you’re working with the
very best professionals,” said Stephen
Cunliffe, executive director of Singita
Grumeti Fund. “Intradco Global and
Qatar Airways Cargo went to great
lengths to ensure that our precious
rhino and his handlers were well looked
after, demonstrating professionalism
PRECIOUS CARGO
Moving Eric the rhino from San Diego to the Serengeti required
global logistics.
 EDUCATING.
INNOVATING.
COLLABORATING.
Join IANA and take your seat at the table
with over 1,000 corporate members representing
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For membership information contact

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and exceptional care in every aspect of
the complex translocation operation.”
ASCM AWARDED GRANT TO HELP IMPROVE
PUBLIC HEALTH SUPPLY CHAINS IN AFRICA
Mere days after the launch of
the Association for Supply Chain
Management was announced at the
APICS 2018 Supply Chain Conference in
Chicago, officials revealed on Oct. 2 that
ASCM was the recipient of a three-year
grant from the Bill & Melinda Gates
Foundation.
With a mission to become the global
leader in supply chain organization
transformation, innovation and
leadership, ASCM will use the grant
to: increase educational and economic
opportunities for women and encourage
healthier families and communities; help
solve critical public health supply chain
challenges, including weak distribution
systems and a lack of reliable monitoring
and data collection mechanisms;
and assist in the development and
implementation of country-specific plans
to elevate the maturity of local supply
chain communities that directly impact
supply chain reliability.
“ASCM believes that by improving
supply chains, we have the opportunity
to help improve lives, especially when
it comes to underserved markets like
those in Africa,” says APICS CEO Abe
Eshkenazi. “This grant recognizes the
significant collaborative opportunity
we have to implement global operating
models that will not only improve public
health supply chains, but also foster
the overall advancement of end-to-end
supply chain management in the region.”
INDEPENDENT OWNER-OPERATOR LANDS
A NEW TRUCK FROM LANDSTAR
Jacksonville, Florida-based Landstar
System, Inc. is a worldwide, asset-light
provider of integrated transportation
management solutions that labels an
affiliated independent truck owner-
operator as a business capacity owner or
BCO.
One BCO, Claremore, Oklahoma’s
Susan Coffer, was the recipient of the
second of two new trucks Landstar has
16 NOV-DEC 2018
given away in 2018. That was the result
of a Landstar Deliver to Win Truck
Giveaway random drawing on Sept. 12.
The drawing was held during
Landstar’s two-day BCO Appreciation
Days in Rockford, Illinois, where
independent owner-operators are
thanked for providing excellence in
safety and customer service.
“I really never expected to win,” a
beaming Coffer said of her brand-new
Kenworth T680. “The entire experience
was a whirlwind. I still can’t believe I
won the truck!”
“We realize that a brand-new truck
can significantly and positively impact
an owner-operator’s life,” explains
Landstar President and CEO Jim
Gattoni, who hosted the giveaway with
a representative from sponsor Comdata.
“Landstar business capacity owners are
hardworking small business owners,
committed to Landstar’s safety-first
culture and providing excellence in
customer service. Landstar is proud to
give away a truck to a member of this
most deserving group.”
FREIGHTROVER LAUNCHES $500 MILLION
SUPPLY CHAIN FINANCING FACILITY
Indianapolis, Indiana-based
transportation technology provider
FreightRover recently announced the
www.globaltrademag.com
LANDSTAR
launch of a new $500 million financing
facility to advance supply chain and
factoring operations across the U.S.
Having closed with Crayhill Capital
Management LP and other investors,
the new facility is supporting the supply
chain and factoring operations conducted
by FreightRover’s affiliate Rover180
LLC, a recently launched trade-finance
company focused on facilitating quick
pay financing options for suppliers, with
emphasis on transportation providers.
Rover180’s supply chain financing
and factoring solutions allow buyers to
benefit from extended pay terms while
providing suppliers with accelerated
receivables. “The capital resources
provided by Crayhill and other investors,
combined with our advanced technology
platform, will enable FreightRover to
fund the myriad of supply chain micro-
payments across a highly fragmented
supplier group,” says Eric Meek,
FreightRover’s CEO. “Traditional supply
chain finance offers limited flexibility
and often lacks automated efficiencies.
Our capital and technology structure
uniquely address both challenges for
prospective clients.” n
KEEP ON TRUCKING:
Susan Coffer gets behind the wheel of her 2019 Kenworth T680.
 T
A D V E R T I S E M E N T
he city of Atlanta — like few
ATL:
cities in the world — displays
an unrivaled diversity
of people and culture, a spirit of
openness and hospitality, and a
Focused true international character.
on Growth Atlanta is a proven leader in economic
and business development. We are
Through Route home to a thriving, global business
community, and we are the leading
Development global city in the Southeast U.S.
Atlanta’s No. 1 economic development
tool is Hartsfield-Jackson Atlanta
International Airport (ATL). ATL
supports more than 400,000 jobs
in metro Atlanta and makes a
direct regional economic impact
of more than $63 billion.
In 2015, ATL topped 101 million
passengers and has been growing
since then. ATL accommodates
nearly 2,500 flights daily to
about 175 domestic and 70
international destinations.
The Airport is preparing for the
future with a renewed commitment
to growth in passenger air
service, cargo development and
supportive infrastructure.
A key ingredient in the Airport’s
passenger and cargo air service
development plans is Hartsfield-
Jackson’s innovative Air Service
Incentive Program (ASIP).
ASIP is designed to stimulate
international air cargo and passenger
growth, particularly along routes
that link Atlanta to the world’s
fastest-growing economies.
The incentive program waives
landing fees for up to two years for
qualified passenger airlines starting
international routes not already
served from Atlanta and matches
up to one-half of promotional costs,
capped at $50,000. International
cargo service carriers benefit from a
waiver of both landing and parking
fees during the same periods.
The highest tier of benefits is
available to carriers starting service
to major economies with the greatest
potential for passenger and cargo
growth, namely Brazil, Russia,
India, China, South Africa, Latin
America and the Caribbean.
China is among ATL’s top five
cargo destinations, and Asia overall
contributes nearly half of ATL’s
total 2017 freighter cargo volume
of more than 691,000 metric tons.
Continued growth is expected in cargo
volume originating from China.
New direct routes to China and
other destinations throughout
Asia will help encourage direct
investment and a steady stream
of business opportunities both
in the Atlanta region and the
targeted destinations in Asia.
In this 21st century, international
visitors choose to vacation, and
foreign corporations choose U.S.
cities in which to invest. Often,
those choices hinge on locations
where nonstop flights provide
fast and convenient air links.
In the area of cargo service
development, increasing ATL
cargo operations remains a key
goal toward making ATL the
leading U.S. hub for e-commerce,
pharmaceuticals, aerospace,
automotive and perishables. ATL
connects the Southeast to the world!
Elliott Paige
Director
Air Service Development
Elliott.Paige@atl.com
+1 (404) 382-2334
© City of Atlanta
 INTERMODAL EXPO
IANA Intermodal Expo 2018:
Takeaways & Discussion Topics
2018 WAS A PERIOD OF GROWTH,
EMERGING CHALLENGES AND THE
OPPORTUNITIES FOR SHIPPERS
BY PETER FRERICHS
B
eautiful Long Beach,
California, was the setting for
IANA’s (Intermodal Association
of North America) annual expo,
the IANA Intermodal Expo 2018.
Over 2,000 representatives from
the intermodal and transportation
communities touched down to present,
converse, debate and exchange
ideas surrounding trends and issues
shaping the future of the larger
intermodal supply chain community.
Global Trade Magazine had
the pleasure of being a handful of
those 2,000 plus attendees, and this
year’s expo was chalk full of over 60
18 NOV-DEC 2018
PHOTOS BY PETER FRERICHS
will likely be reached.
The intermodal industry numbers
support Mr. Strauss, as intermodal
volumes were up 7 percent (as of
August 2018) compared to last year
with the third-party logistics sector
industry experts and a staggering
also expanding — global estimates peg
125 plus exhibitors showcasing some
the market to reach $968 billion this
of the most technologically advanced
year, compared to $869 billion last
products and services the intermodal
year.
industry has seen.
IANA is a “connecting force” for the
The morning of day one kicked off
intermodal freight sector, bringing
with Bill Strauss, senior economist
together the most relevant (and up
and adviser with the Federal Reserve
and coming) players via the creation
Bank of Chicago. Mr. Strauss
of spaces, such as the Intermodal
managed to bring an initial, collective
Expo, to stay informed, drive industry
smile to the room, noting that the
success and strengthen the broader
2018 expo is meeting at a time of
community. IANA members count
strong economic growth. Consumer
spending and GDP are up, the
GETTING IT DONE EASIER
economy has been growing at an
average annual rate of 2.3 percent This year’s IANA Intermodal Expo emphasisized productivity, with
panels on topics such as“How Can Technology Help?”and
(since 2009), and if this continues
demonstrations of automated cranes and other “smart equipment.”
through July of next year new records
www.globaltrademag.com
on a wealth of resources, but most
important, access to relevant trends
that are shaping the sector at
breakneck speeds.
A handful of truly remarkable
innovations were on-hand at this
year’s expo. A recurring issue year
in and year out is terminal overload.
Moderated by Taso Zografos, principal
at ZDEVCO, the panel, “Intermodal
Terminal Overload: How Can
Technology Help?” brought together
a handful of expert panelists on the
issue where autonomous vehicles,
automated stacking cranes and
similar “smart equipment” was
presented. Warehouses, marine
terminals and rail ramps are fantastic
for “smart equipment” due to little
vehicle traffic and confined areas.
The next challenge however will be
rolling this out to harbor drayage
and the open road. As Wade Long,
regional vice president of Volvo
Trucks, astutely noted, heavy-duty
diesel trucks, many operated by
living, breathing drivers, will still be
around for at least the next 50 years.
Another recurring theme
throughout the two-day event was
productivity, especially in a time
of truck driver shortages. This has
been a troubling point for some time,
where a shortage of drivers produces
bottlenecks throughout the supply
chain thus hampering productivity at
a macro level. Larry Gross, president
of Gross Transportation Consulting,
moderated an engaging panel
surrounding this very issue. Driver
www.globaltrademag.com
productivity has
been on the decline,
and Phil Shook,
director of intermodal
for C.H. Robinson,
communicated it
best noting that the
industry standard used to be 500 miles
per driver, and that has now dipped
into the 400s. The room agreed that
getting an extra half-a-load per driver
per day is the proverbial Holy Grail.
A full review of all panels and
presenters is available on the IANA
Expo website and next year’s expo
will be held Sept. 15-17, 2019, in that
same jewel beside the bay – Long
Beach, California. Pack your swim-
trunks, this is an expo you don’t want
to miss! n
STRONGER TOGETHER
IANA is a “connecting force” for the intermodal freight sector,
bringing together the most relevant players to stay informed, drive
industry success and strengthen the broader community. This year’s
expo was chalk full of over 60 industry experts and a staggering
125 plus exhibitors showcasing some of the most technologically
advanced products and services.
NOV-DEC 2018 19
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 DEPARTMENTS / NEWS VAULT
DHL Global Trade Barometer Continues
to Forecast Trade Growth, Albeit Slower
BY PETER BUXBAUM
G
lobal trade continues to
grow, according to October’s
three-months forecast from
the DHL Global Trade Barometer
(GTB). The index for global trade now
stands at 63 points, which is a decline
of four points on the previous quarter’s
forecast, indicating an overall slightly
slower pace of growth. In the GTB
22 NOV-DEC 2018
methodology, an index value above 50
indicates positive growth, while values
below 50 indicate contraction.
The overall slight reduction is
largely driven by lower growth rates
of air trade. The respective index
value declined by eight points to 62.
In contrast, the growth rate for global
ocean trade merely decreased by one
point to 63 points. Regarding the GTB’s
seven constituent countries, this quarter
sees a mixed picture with a threefold
www.globaltrademag.com
DHL
differentiation: India as the only country
with simultaneously increasing and
very high prospects for trade growth, the
UK with an unchanged outlook, and all
other countries with slightly diminishing
prospects.
Despite intensifying global trade
disputes, mainly between China and
STILL CHUGGING
DHL sees the global trade train still moving forward, but it’s slowing.
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the U.S., these countries remain in
growth mode, however, at a slower pace.
American growth prospects slowed down
by five points to 63, while the Chinese
trade outlook decreased by four points
to 59. Most other constituent countries
witnessed decelerating trade dynamics,
too: South Korea–still one of the previous
forecast’s strongest growth drivers–saw
its outlook reduced by five points to
69. Likewise, Germany’s trade growth
forecast was reduced by six points to 58.
The outlook for Japan went down by three
points to 64.
UN REPORT: TRADE WAR THREATENS
OUTLOOK FOR GLOBAL SHIPPING
The outbreak of trade wars and
increased inward-looking policies threaten
the prospects for seaborne trade, projected
Mukhisa Kituyi, secretary general of the
United Nations Conference on Trade
and Development at October’s Global
PICTURE PERFECT
Beautiful describes Marina Bay at night and Singapore’s longtime
business and government relationship with the U.S.
24 NOV-DEC 2018
Maritime Forum’s Annual Summit in
Hong Kong.
Kituyi’s warning while launching the
2018 edition of the UNCTAD Review
of Maritime Transport came against
a background of an improved balance
between demand and supply that has
lifted shipping rates to boost earnings
and profits. Freight-rate levels improved
significantly in 2017 except in the tanker
market, supported by stronger global
demand, more manageable fleet capacity
growth and overall healthier market
conditions.
Seaborne trade expanded by a healthy
four percent in 2017, the fastest growth in
five years, and UNCTAD forecasts similar
growth this year, subject to Kituyi’s
warning over trade and tariff wars:
“Escalating protectionism and tit-for-tat
tariff battles will potentially disrupt the
global trading system which underpins
demand for maritime transport.”
MYANMAR AT BOTTOM OF GLOBAL
INDEX ON ILLICIT TRADE
The Transnational Alliance to Combat
Illicit Trade (TRACIT) in October called
www.globaltrademag.com
for Myanmar to urgently step up efforts
to fight illicit trade. Myanmar’s structural
difficulties to effectively address illicit
trade is evidenced in its very low score in
the 2018 Global Illicit Trade Environment
Index.
The index was produced by the
Economist Intelligence Unit (EIU) and
evaluates 84 countries on the extent they
enable or prevent illicit trade. Myanmar
ranks 82nd out of 84 countries evaluated,
with an overall score of 23.0 (out of 100).
“This means that—apart from Iraq
and Libya—Myanmar shows the poorest
structural defense against illicit trade,”
said TRACIT Director-General Jeffrey
Hardy. “It also means we have a lot of
work to do here, especially in the areas
of illegal logging and mining, wildlife
and human trafficking, spirits, beer and
cigarette smuggling, and counterfeiting of
all types of consumer goods.”
“We’re trying to solve illicit trade in
all possible ways,” reported U Ko Lay,
director of the Myanmar Ministry of
Commerce. “But we need law and order
first and that will pave the way for legal
trade.”

COMMERCE UNDER SECRETARY SIGNS
INDUSTRY COLLABORATION AGREEMENTS
Under Secretary of Commerce for
International Trade Gilbert Kaplan
met in Singapore with officials from the
U.S. Chamber of Commerce, Singapore
Business Federation (SBF) and Singapore
Manufacturing Federation (SMF) in
September to update and expand the
Department of Commerce’s framework for
U.S.-Singapore commercial collaboration.
The discussions were part of a broader
trip that Kaplan led to India, Vietnam
and Singapore to advance the U.S.
government’s new Indo-Pacific Initiative
by helping American companies navigate
market challenges and by enhancing
trade promotion efforts.
In his remarks, Kaplan emphasized
that “our partnership with Singapore
has been a great representation of the
mutually beneficial outcomes we hope
to accomplish throughout the broader
Indo-Pacific region, especially with all
of the gains we have seen since the
United States and Singapore signed
our bilateral free trade agreement 15
years ago. This includes the Commerce
Department’s work with Singapore’s
business organizations, who have been
great friends and partners of the U.S.
government and U.S. business community
over the years.”
GPA APPROVES $92 MILLION RAIL EXPANSION
During a September meeting of the
Georgia Ports Authority (GPA) board
of directors in Atlanta, $92 million was
approved for the Mason Mega Rail
Terminal, a project that will double the
Port of Savannah’s annual rail capacity
to 1 million containers and deliver the
largest on-terminal rail facility in North
America by 2020.
“It is no accident the GPA is
constructing rail capacity as the demand
for rail is growing,” said GPA Board
Chairman Jimmy Allgood. “As part of
our strategic planning two years ago,
our team identified the growing role
intermodal cargo would play in GPA’s
long-term success and put into place this
plan for expansion.”
The GPA also announced it had moved
375,833 TEUs in August, an eight-percent
increase over August 2017, while handling
www.globaltrademag.com
SINGAPORE URBAN REDEVELOPMENT AUTHORITY
86,200 intermodal TEUs represented a 33
percent jump.
PORT MANATEE, CARVER MARITIME INK
LONG-TERM TERMINAL PACT
Port Manatee and Carver Maritime
LLC in August entered a long-term
marine terminal operating agreement for
a 10-acre aggregate offloading facility at
the Florida Gulf Coast port.
The Manatee County Port Authority-
approved agreement lasts for as many as
20 years (including options) and ensures
property lease payments totaling $1.8
million for the initial five-year term, in
addition to wharfage payments for annual
cargo throughputs.
“We, along with our customers, are
excited about this opportunity, and very
much look forward to a long and fruitful
relationship with Port Manatee, as well
as its tenants,” said Carver Laraway,
president of Altamont, New York-based
parent firm Carver Companies. “The
projected growth of Central Florida and
the business-friendly environment of
Manatee County make us eager to call it
home.” n
NOV-DEC 2018 25
 America
ON THE COVER

STRONG
BY ROBERT PERYEA

SHUTTERSTOCK

26 NOV-DEC 2018 www.globaltrademag.com

HERE THEY ARE — THE TOP
U.S. CITIES FOR GLOBAL TRADE

E
ach year, Global Trade magazine takes the time to look at U.S. cities to guide
our readers to the best places to do business. We choose these cities based
on many factors: what they’ve done, what’s planned, and how global trade has
responded to them. As with any list like this, there is always room for interpretation,
but we feel that each of these cities, from the country’s largest to some tiny cities,
all deserve a look from anyone interested in doing business in the United States.
 NATIONAL ECONOMY & TRENDS

T
he economy of the U.S. is
stronger than it has been
in decades. Record low
unemployment, rising wages and high
consumer and business confidence
are all contributing to huge growth in
the economy. The fundamentals of the
economy are strong and don’t appear to
be weakening soon.
Many businesses and industries that
had abandoned the U.S. for cheaper
shores are returning due to changes in
tariffs and economic realities. Notable
is the return of the steel industry, which
was all but dead in the U.S. but now
appears to be making a quiet resurgence.
On the horizon are areas for concern,
depending on whom you ask.
The current administration
succeeded with renegotiating some
trade agreements, as evidenced by the
creation of USMCA to replace NAFTA,
but trade with China is still a huge
question mark. China’s government
doesn’t appear to respond to strong-
arm tactics, and they have a large Seattle was one of several cities chosen as winners in
enough economy they may be willing multiple categories, thanks to its expert workforce and
to battle with the U.S. administration. position as a global trade leader.
Some economists predict a mild
recession in 2019, but most offer
different reasons for this. Without a
consensus, it’s hard to believe these n SEATTLE n DETROIT
predictions will come to fruition. (Export/Skilled Workforce/Financial Hub) (Export/Financial Hub/NAFTA/USMCA/
Seattle has been a global trade leader for Business Incentives)
BEST CITIES FOR GLOBAL TRADE

E
ach category of this list allows
business leaders to look at
locations in which to open or
relocate a business.
MULTI-CATEGORY WINNERS
These cities deserve mention in several
categories. Most times, these are
America’s largest cities and are obvious
candidates for many categories.
n NEW YORK CITY
(Export/Financial Hub)
New York City is an obvious choice
for several categories. With Wall Street
and most of the world’s largest banks,
New York is arguably the global
financial center. The Port of New York
and New Jersey is still the second
busiest in the world. The Big Apple
is the launching point for millions of
global businesses.
over a generation. With its well-protected
port, and as the home of such businesses
as Amazon and Microsoft, skilled
workers and financial services have
flocked to the city. Few cities in the world
offer the global trade access that Seattle
does without massive populations.
n CHICAGO
(Export/Intermodal)
The Windy City has been the entry
point to and exit point from the heart
of the United States. It is still the ideal
location to import and export goods. Its
intermodal strengths include a massive
highway system, river barges and rail
that allow the movement of goods
within the country with ease. The St.
Lawrence Seaway provides access for
ships of every size to go into and out of
the Great Lakes.
Despite a legendary crash of the
auto industry and bleak images of a
downtown in shambles, the Motor City
is still an economic powerhouse. With
easy access to the Great Lakes and
Canada, Detroit is an excellent place
to do business with America’s second
largest trade partner, Canada. The
economy in Detroit has led to business
incentives that rival or best anything
being provided by the Southern states.
n MIAMI , FLORIDA
(Export/Skilled Workforce)
More than pristine beaches, Miami
and its high-tech port are an excellent
location for import/export. There is
also an abundance of skilled workers
who have arrived in the city, many of
them immigrants bringing an intimate
knowledge of other nation’s economies
and markets.

28 NOV-DEC 2018 www.globaltrademag.com

 PURE INSPIRATION

Grand Rapids. A city with a rich entrepreneurial history, robust economy and talented workforce.
Ranked by HeadlightData.com as the fastest-growing U.S. economy, Michigan’s second largest city
is home to many global consumer brands. With its innovative spirit, public-private collaboration and
can-do philosophy, Grand Rapids has the perfect culture for business success.

michiganbusiness.org
n DALLAS
(Export/Intermodal)
The Big D is a place with a Texas-sized
economy and the assets to keep it that
way. The intermodal assets in the city
make it an ideal location to bring goods
in via air or the nearby Gulf ports and
ship it to the booming South and into
the Mountain states.
n SAN FRANCISCO
(Financial Hub/Cities to Watch)
San Francisco has been a financial hub
since the Gold Rush, and it continues to
show its prowess by attracting financial
business from Silicon Valley and the
large, but hidden, economy of Northern
California. The Golden Gate City makes
our list of cities to watch as it is going
through a growth spurt and, if the city
leaders adapt well, will solidify San
Francisco’s place among such cities as
Hong Kong, Singapore and Los Angeles
as a Ring of Fire powerhouse.
n CHARLOTTE, NORTH CAROLINA
(Financial Hub/Start-Relocate a Business)
Maintaining much of its old Southern
charm, e has modernized overnight and
is attracting some of the best businesses
and minds in the country. The quality of
life, the vibrant economy and the
entrepreneurial spirit of the city make it
an ideal place to start or relocate a
business. The fi nancial sector makes
Charlotte a quiet giant, home to billion-
dollar deals and a large investment
community.
n MINNEAPOLIS/ST. PAUL
(Financial Hub/Skilled Workforce/Business
Incentives)
The Twin Cities have been and are
home to many of the nation’s largest
financial institutions. It maintains its
place as one of the best educated cities
in the country with great colleges
and universities and a quality of life
that keeps people there. The region’s
economic developers are committed
with loans and grants to help
businesses grow and thrive in the area.
n DURHAM, NORTH CAROLINA
(Financial Hub/Start-Relocate a Business)
At one point of the Research Triangle,
30 NOV-DEC 2018
Durham, North Carolina, is on our list
of places to start or relocate a business.
With abundant workers, from
unskilled to highly skilled, arriving
to the region every day, it’s an ideal
place to put most types of business.
The financial sector in Durham is
growing as the surrounding states are
welcoming large global businesses
with staffs that need local financial
services.
n MEMPHIS, TENNESSEE
(Intermodal/Business Incentives)
The Mississippi River flows past this
city, known for its music life. The
river along with a well-established
intermodal system make Memphis
a perfect spot from which to import
and export. Bringing business to the
city is made easier by incentives that
often lead the nation in their boldness.
Memphis sits at the heart of the South,
centrally located to move goods
and people up and down the entire
country.
EL PASO, TEXAS
(Export/NAFTA/USMCA)
There might not be a better city to trade
with Mexico and South and Central
America than El Paso. Right on the
Mexican border, with one of the best
intermodal systems in the region, El
Paso makes it easy to do business with
America’s southern neighbors.
n AUSTIN, TEXAS
(Start-Relocate a Business/Skilled
Workforce/Quality of Life)
In a state famous for its rugged
individualism, Austin is a place built
on community growth and shared
wisdom. This has attracted tens of
thousands of skilled workers and
created a capitol city that is friendly
to residents and new businesses.
Altogether, this makes Austin one of
the coolest cities from which to launch
one’s global empire.
n CHEYENNE, WYOMING
(Start-Relocate a Business/Small Market)
With just 64,000 residents, Cheyenne
is a small city that has a lot going for
it. Wyoming is leading the nation
www.globaltrademag.com
in business climate, according to
the Tax Foundation. This, combined
with a commitment to small and
medium-sized businesses, makes
Cheyenne a great place to start
or relocate a business. Still small
enough to have that small-town feel,
Cheyenne has a full-sized business
climate.
n BISMARCK, NORTH DAKOTA
(Start-Relocate a Business/NAFTA/
USMCA/Small Market)
Along the Canadian border there
is a business boom that is quietly
eclipsing the country. North Dakota’s
oil rich economy is creating a perfect
environment for starting or relocating a
business, particularly if you’re looking
to do business with Canada. North
Dakota’s capitol city is small (72,500
souls) but is moving up the ranks of
business-friendly cities.
n SIOUX FALLS, SOUTH DAKOTA
(Start-Relocate a Business/Business
Incentives)
Sioux Falls, like Bismarck, is enjoying
a statewide boom in energy. One
of this small city’s biggest assets is
the incentive efforts that are made
to welcome and grow businesses.
The leadership is very creative with
assistance to bring jobs to town.
Starting or relocating a business in
the city is a powerful way to take
advantage a great small city in a state
that offers outstanding tax rates.
n TEXARKANA, TEXAS
(Business Incentives/City to Watch)
By far the smallest city on our multi-
category list, Texarkana has a unique
history that makes it a city to watch.
In the Panhandle, it is on the Arkansas
border and very near the Louisiana
and Oklahoma borders. Once home
to the U.S. military’s largest weapons
depot, this city has rail lines to spare
and buildings that were literally built
to withstand a bomb (or decades
of business). The leadership offers
amazing incentives and works with
businesses to get them what they
need. A tiny Texas giant, this is a city
poised to lead the nation in growth.
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n DES MOINES, IOWA
(Quality of Life/City to Watch)
There are many nice cities, but Des
Moines stands out. The moderate
climate and Midwestern charm
make it a great city to live in. The
business climate continues to
improve, making this gateway to the
Plains a perfect place for any concern
looking to bridge the distance
between Chicago and the East and
the energy of the Upper Plains states.
n SAN DIEGO
(NAFTA/USMCA/Skilled Workforce)
The largest city on the Mexico
border, San Diego is the perfect
place to do business with its
southern neighbor and the nations
farther south. Its climate and
abundant activities attract more and
more skilled workers every year.
Easy access to the whole state of
California, with 13 percent of the
total U.S. population, makes San
Diego a great place for business.
n BELLEVUE, WASHINGTON
(Quality of Life/Cities to Watch)
Green and lush like its big sister,
Seattle, Bellevue is an ideal place to
live. Sitting between two lakes, Lake
Washington and Lake Sammamish,
it’s a wonderful place for outdoor
activities, still in the warm zone
created by the Puget Sound.
Microsoft, Amazon, Starbucks and
all the other amazing businesses of
Washington state are just a stone’s
throw away. This is a city that is
making room for the next wave of
Washington innovation.
n BUFFALO, NEW YORK
(NAFTA/USMCA/Skilled Workforce)
Buffalo sits on the very western edge
of New York and at the leading edge
of New England’s boom. Right on
the Great Lakes and the heart of an
East Coast Silicon Valley, Buffalo has
more skilled workers per capita than
most of the rest of the country. Many
of these workers hail from New York
state colleges and universities. The
state’s incentive commitments are
forging powerful partnerships with
business.
32 NOV-DEC 2018
LISTS BY CATEGORY
Rather than clog up the lists below with the repeat winners, we’ve pulled
those cities out so we can highlight the great cities that win in their respective
categories. While each category has up to 10 winners, they are presented in
no particular order as each offers its own assets, such as location, that make it
unique for a business’ needs.
TOP EXPORT CITIES
These are cities that make it easy to
bring goods in and send goods out.
Many have deep-water ports, or like El
Paso have import/export assets that are
outstanding.
• Houston
• Los Angeles
• New Orleans
TOP FINANCIAL HUBS
Banks, investment firms and stock brokers
flock together to allow them to share
information and often, because the city’s
data capabilities are high enough to prevent
a slowdown of information from around the
world. Another significant reason to choose
a city is its proximity to a growing industry
that needs financial services.
• Richmond, Virginia
• Lincoln, Nebraska
MOST ADVANCED PORTS
Automation and quality of the dockside
equipment influence how quickly products
are offloaded or put on a ship. These ports lead
the nation in innovation, reliability and speed.
• Los Angeles/Long Beach
• Savannah, Georgia
• Port of Virginia (Norfolk)
• Houston
• Oakland, California
• Port of Charleston (South Carolina)
INTERMODAL ACCESS
The ability to move from ship to train to
truck to plane or any combination can
mean the difference between shipments in
days or weeks. The cities on this list provide
the fastest and most intermodal access for
shipments into or out of the United States.
• Kansas City, Missouri
• Indianapolis, Indiana
• Columbus, Ohio
• Atlanta
• Portsmouth, Virginia
• Elizabeth, New Jersey
• Little Rock, Arkansas
www.globaltrademag.com
Port Arthur
TEXAS
Raleigh, North Carolina, is among a handful of cities selected as superior places to start or
relocate a business, with low start-up costs and a welcoming business community.

START OR RELOCATE A BUSINESS

This is the list of cities that are the best in the country for starting or relocating a
‹žœ’—Žœœǯȱ˜ ȱœŠ›Ȭž™ȱŒ˜œœǰȱŠ—ȱŽ¡ŒŽ••Ž—ȱ‹žœ’—ŽœœȱŽ—Ÿ’›˜—–Ž—ȱŠ—ȱ™•Ž—¢ȱ˜ȱšžŠ•’ęȱŽȱ
œŠěȱȱ–Š”Žȱ‘ŽœŽȱŒ’’Žœȱ‘Žȱ’ŽŠ•ȱ™•ŠŒŽœȱ˜ȱŒ›ŽŠŽȱŠȱ—Ž ȱ•˜‹Š•ȱ›ŠŽȱŽ–™’›Žǯ
• ”•Š‘˜–Šȱ’¢ • Š•Ž’‘ǰȱ˜›‘ȱŠ›˜•’—Š
• ’œœ˜ž•Šǰȱ˜—Š—Š • ›Š—ȱŠ™’œǰȱ’Œ‘’Š—
• ’••’—œǰȱ˜—Š—Š

NAFTA/USMCA ACCESS
The latest update to NAFTA, the USMCA appears to be a modernization of the now
25-year-old agreement. The cities on this list provide a home base for any business
seeking to work with the most important U.S. trading partners, Canada and Mexico.
Most are near the borders, providing the ease of access to the U.S., while being ideally
placed for shipments into and out of the northern and southern neighbors.

• •‹žšžŽ›šžŽǰȱŽ ȱŽ¡’Œ˜ • Š›Ž˜ǰȱŽ¡Šœ
• ˜›™žœȱ‘›’œ’ǰȱŽ¡Šœ • Peoria, Illinois
• Fort Lauderdale, Florida

QUALITY OF LIFE
Business is important, but everyone needs to live someplace that they love. This
list represents the nicest places to live in the country. Where living is good,
business is also excellent. Although not a strictly business category, the list
Œ˜–™’•ŽœȱŒ’’Žœȱ˜ȱŒ˜—œ’Ž›ȱ’ȱ¢˜žȱ—ŽŽȱŠȱ›ŽŠȱœŠěȱǯȱŽ’—ȱœ˜–Ž™•ŠŒŽȱ‘Šȱ™Ž˜™•Žȱ
 Š—ȱ˜ȱ•’ŸŽȱ–Š”Žœȱ’ȱŽŠœ’Ž›ȱ˜ȱŠĴȱ›ŠŒȱ›ŽŠȱ ˜›”Ž›œǯ
• ˜•˜›Š˜ȱ™›’—œǰȱ˜•˜›Š˜ •
ž—œŸ’••Žǰȱ•Š‹Š–Š
• Š’œ˜—ǰȱ’œŒ˜—œ’— • Portland, Oregon
• Denver • Šœȱ›žŒŽœǰȱŽ ȱŽ¡’Œ˜

34 NOV-DEC 2018 www.globaltrademag.com

BEST BUSINESS INCENTIVES
Incentives for businesses are thought of as being cash or tax credits, but many cities here
offer many more diverse choices. Among them: free land or buildings, free education for
staff, and many other attractive incentives.
• Omaha, Nebraska • Boca Raton, Florida
• Salt Lake City • Cleveland

SKILLED WORKFORCE
Every business needs a great staff. In this era of near full employment, finding the right
qualified staff can be a challenge. The cities on this list have a disproportionate number
of educated laborers. For companies seeking a place to be that will give them the world’s
greatest employees, these are places to be.
• Boston • Milwaukee
• Washington, D.C.

LEADING SOUTHERN PORTS

The South is in the midst of a decade or more long boom. The area from Florida to
Louisiana has some of the world’s greatest ports, providing a gateway to a powerful
economic engine. These ports vary in size and volume, but all of them represent some of
the best places in the world to move products into and out of the United States.
• Port Miami • Port Canaveral (Florida)
• Port Everglades • Port South Louisiana
(Florida) • Jacksonville Port
• Port Tampa (Florida) Authority (Florida)
• Port New Orleans

SMALL MARKETS <100,000 POPULATION

These small cities make a big imprint. Large cities are expensive and crowded, while
these are small enough to be inexpensive, easy to move around in, and easy to be “a big
fish in a small pond.” Look to these cities to be offered the respect you deserve.
• St. George, Utah • Burlington, Vermont
• Wilson, North Dakota • Ft. Myers, Florida
• Denton, Texas • Enid, Oklahoma
• Bozeman, Montana • Holland, Michigan

CITIES TO WATCH
These are cities that deserve attention for their economic climate and the efforts that the
leadership and the great citizens are putting in to make their cities great places in which
to live and do business.
• Kenosha, • Jersey City, • Irvine, California
Wisconsin New Jersey • Marietta, Georgia
• Dumas, Texas • Fremont, California • Decatur, Illinois
• Madison, • Odessa, Texas • Little Rock,
Wisconsin • Birmingham, Arkansas
• Baltimore, Alabama • Tulsa, Oklahoma
Maryland • Reno, Nevada • Peoria, Arizona
 FEATURE
WE CAN’T
CONTAIN
OURSELVES
NOT UNTIL WE UNVEIL THE TOP 50 NORTH AMERICAN CONTAINER PORTS
BY TAYLOR GIRARDI-SCHACHTER
A
s global trade continues
to grow (albeit at a
slower pace than
the World Trade
Organization initially
projected for 2018), there are some
ports that are already processing an
impressive number of twenty-foot-
equivalent units (TEUs). A TEU is a
unit of measurement given to cargo
capacity, based upon the volume of a
20-foot-long container. Height does
36 NOV-DEC 2018
not factor in when determining TEUs,
though most containers range between
four feet, three inches and 9 feet, six
inches. When a port processes a TEU,
one container counts as one TEU. When
a port processes 9.3 million TEUs in
a year like the Port of Los Angeles,
that earns them the No. 1 spot on
Global Trade’s Top 50 North American
Container Ports.
But while some ports are already
doing big business, a greater push
for more efficient container ports is
being applied across the continent.
While many larger ports are already
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SOUTH CAROLINA PORT AUTHORITY
equipped to handle large vessels, many
simply cannot accommodate the newer,
larger Panamax-sized ships which are
becoming increasingly more common
thanks to new larger size limits allowed
by the Panama Canal expansion. Super
Panamax, Post Panamax and Neo
Panamax vessels got their name from
the Panama Canal Authority (ACP)
in 1914, but newer requirements were
enacted on June 26, 2016, when the
THAT’S DEEP
South Carolina Port Authority is committed to making the Port of
Charleston the deepest port on the East Coast by 2021.
Panama Canal opened its most recent set
of locks.
Whether a vessel is Panamax, Neo
Panamax, Super Panamax or Post
Panamax is based upon the Panama
Canal’s initial lock chamber dimensions
of 1,050 feet long by 110 feet wide by 41.2
feet deep. These guidelines allow the
ACP to determine whether a ship can
pass through the canal, by factoring in
the width and depth of the water in the
available locks, as well as by the height
of the Bridge of the Americas, which
these ships must pass under on their way
through the canal.
But Super, Post and Neo Panamax
ships aren’t just larger, they’re more
HIÀFLHQWWRRWKDQNVWRWKHLUDELOLW\WR
carry more cargo per trip. Unfortunately,
DOOWKDWHIÀFLHQF\LVIRUQDXJKWLIDSRUW
can’t accommodate that size vessel. The
good news is that an increasing number
of ports are expanding to accommodate
these ships, investing millions of dollars
to dredge deeper waterways and wider
locks, expanding docks, adding cranes,
extending existing rail and much more.
THE DEMAND FOR ENERGY NEVER STOPS.
That’s why we’re here to keep it moving.
Port of Corpus Christi provides more advantages for the movement of heavy lift cargo, including
dockside rail loading and truck transfer, a 47' deep channel, dredging to 54', three Class 1 rail carriers
and a short line railroad, state-of-the-art security, and a skilled labor force.
Among those ports, many of the top 50
have gone above and beyond to expand
and improve, earning them spots among
the top 50 container ports by TEU in
North America.
The Big Guys
The two largest ports by TEU are both
located in the Golden State of California.
With more than 9.3 million TEUs in 2017
alone, the Port of Los Angeles is the No.
1 port by volume in North America, with
the Port of Long Beach not far behind
with 7.5 million TEUs the same year.
So, what’s bringing so much cargo
to the Left Coast? In addition to its
capacity for larger Panamax ships and
high volume shipments, the Port of LA’s
proximity to Asian markets such as
China, Japan, Hong Kong, South Korea,
Vietnam and Taiwan makes it so popular.
In fact, the 7,500-acre Port of LA alone
processes 20 percent of the foreign cargo
entering the United States.
Just nine miles south of the Port of
LA, No. 2 ranked Port of Long Beach
prides itself on being a popular cruise
ship port as well as one of the “greenest”
ports in the world. With its Green Port
Policy initiative and more than 20 years
of environmental protection programs,
the Port of Long Beach strives to reduce
its environmental footprint, encourage
sustainability and protect the greater
community from environmental impacts
the port may make. As such, the port
has invested $4 billion toward efforts
to become a zero-emissions port in the
coming years.
Changing Infrastructure
One way North American ports are
accommodating the new Super and
Neo Panamax ships is by changing
infrastructure and expanding ports
to allow larger vessels to maneuver
through locks with ease. The Port of
Miami (No. 18) recently invested $1
billion into a major port overhaul and
expansion, complete with channel
widening (from 50 to 52 feet), $50 million
in rail improvements, and several
SEE BREAKBULK
AMERICAS
US AT OCT. 2-4 • HOUSTON, TX
BOOTH 515
View all our capabilities at
portofcc.com

super Panamax-capable cranes with
22-container outreach that are the biggest
in the entire Southeast United States.
A $350 million expansion at the
Port of Virginia (No. 7) is slated to be
completed in 2019 and will include a
brand new, 26-lane motor carrier gate,
rail mounted gantry cranes (RMGs) to
allow for higher container stacks, and
various rail improvements. Not far up the
coast, the Port of Baltimore is investing in
several port-related projects around the
city, including replacing the dilapidated
Colgate Creek Bridge, which will expand
access from the port to Interstate 95 for
larger logistics trucks. A recent purchase
of 70 acres of land will enable the port to
store and process the increased amount of
cargo coming off Super Panamax vessels.
The expansion is expected to generate
1,650 new jobs for the city.
This past September, the Port of
Georgia (No. 4) announced it would be
investing $2.5 billion over the next 10
years to jump from its current capacity of
5.5 million, 20-foot TEUs to an impressive
8 million. It’s part of a whopping $14.1
billion in investments over the next five
decades. For each dollar invested, the Port
of Georgia expects a profit of $7.30 to the
U.S. economy.
Not too far north, the South Carolina
Port Authority has committed $2.4 billion
to deepen the Port of Charleston (No.
11) to 52 feet, making it the deepest port
on the East Coast by the year 2021, and
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GEORGIA PORTS AUTHORITY
capable of an 8 million TEU capacity
by 2028. Furthermore, the port plans to
double its rail capacity by the year 2020.
With a planned 180,000 additional feet of
rail, the project is part of a strategy to cut
24 hours off transit time to the Midwest.
The Port of Philadelphia (No. 24), now
known as PhilaPort, doesn’t just carry
cargo but a rich history dating back to
1701 and the days of William Penn. But
the 300+-year-old PhilaPort is anything
but dated. Today, the port is undergoing
improvements as part of a $300-million
KEEP STACKING
Port of Georgia aims to grow its capacity from 5.5 million to 8 million
TEUs over 10 years.
NOV-DEC 2018 39
expansion authorized in 2016. The
funds will be used to double PhilaPort’s
container capacity, improve their PAMT
terminal and increase the terminal’s
capacity from 485,000 to 900,000.
Philaport is also undergoing a channel
expansion which will bring the main
channel from its current 40 feet to 45 feet
to accommodate larger Super and Neo
Panamax ships.
The Port Authority of New York and
New Jersey (No. 3) is in the midst of a
$4-billion expansion and improvement
project that will make room for Super
Panamax vessels, as well as their
increased cargo load.
International Ports
The U.S. is not the only country with
ports making big changes—and doing big
business—in North America. Canada is
also home to two notable ports. The Port
of Vancouver (No. 6), which is the largest
port in Canada and the sixth-largest in
North America, boasts a decidedly global
hub, while the Port of Montreal (No. 12)
GPA’S $128 MILLION MASON MEGA RAIL TERMINAL
OPERATIONAL IN 2020
DOUBLES GPA RAIL CAPACITY TO
EXTENDS REACH TO
does much of its business with Europe.
The Port of Vancouver processes about
2.9 million TEUs each year. Located
on Canada’s west coast in picturesque
Vancouver, British Columbia, the Port of
Vancouver contributes $24.2 billion CDN
to Canada’s economy each year, supplying
about 92,600 jobs in British Columbia
and an additional 115,300 jobs across
Canada.
On Canada’s east coast, the Port
of Montreal processes more than 1.5
million TEUs annually and has recently
entered a partnership with the Centre
for Technological Entrepreneurship
(CENTECH) and École de technologie
supérieure (ÉTS) to create a “port
logistics innovation unit.” The aim is to
help address modern issues facing the
port such as cybersecurity, supply-chain
visibility and decarbonization and process
improvement. The innovative program
will be the first of its kind in North
America.
The Port of Montreal also happens
to be the closest port to Europe, and as
such offers the shortest direct route of any
...ON A WHOLE NEW SCALE
1 MILLION CONTAINER LIFTS PER YEAR
CUTS TRANSIT TIMES BY 24 HOURS
AMERICAN MIDWEST
MASONMEGARAIL.COM
North American port from Europe and
the Mediterranean.
South of the U.S. border in the State of
Colima, Mexico, is the Port of Manzanillo
(No. 8), which processes more than 2.8
million TEUs per year. The largest port
in Mexico, the Port of Manzanillo is the
only container port from the country in
the top ten. The port generates most
of its business from iron ore, pectin,
pickles (yes, pickles), cement and seafood
products such as giant squid, swordfish,
tuna and even shark.
Teaming Up
Much like the No. 3 ranked Port of
New York and New Jersey, the Ports
of Seattle and Tacoma have merged to
create the Northwest Seaport Alliance,
which has rounded out the top of the list
at No. 5. In 2017, the Northwest Seaport
Alliance processed more than 3.6 million
TEUs, with a 15.6 percent increase in
September 2018 over the prior year—the
biggest increase in September volume
since 2005. The port hopes to increase its
It feels good knowing more.
The Port of Vancouver checks all the boxes. With real-time monitoring tools,
innovative supply chain strategies and collaborative infrastructure improvements,
Vancouver is the right choice now and the right choice for the future.

Go to portvancouver.com to check all the details.


annual TEUs from its current rate of 3.6
million annually to 6 million by the year
2025, generating 14,600 new jobs in the
process.
In addition to being a major gateway
for cargo from Asia and a major
distribution point for cargo from Asia
heading to the Eastern United States,
the Northwest Seaport Alliance is also
home to the Puget Sound, which has the
strategic position of being an important
gateway to Alaska. In fact, according to
the Northwest Seaport Alliance, more
than 80 percent of total trade volume
between Alaska and the rest of the U.S.
passes through the alliance’s North and
South harbors.
New Ownership
This past September, the Port of
Wilmington (No. 27) in Wilmington,
Delaware, was sold to Gulftainer, a United
Arab Emirates-based port operator on a
50-year concession. Gulftainer plans to
invest $600 million into the improvement
of the port. No stranger to North
42 NOV-DEC 2018
American ports, Gulftainer also currently
operates Florida’s Port of Canaveral.
Of Gulftainer’s planned $600-million
investment, $400 million would go toward
a new, 1.2 million TEU container facility.
Currently, the Port of Wilmington can
process 600,000 TEUs. A new cargo
terminal and training facility are also
slated for development with the new
concession.
Everything’s Bigger in Texas
The State of Texas is home to several
major ports, including the Port Houston
(No. 9) and Port Freeport (No. 39), both of
which are undergoing expansions of their
own.
Port Freeport is planning a major
expansion which will deepen the port
from its current 45 feet to 55 feet. It also
will be lengthened to 2,200 linear feet
to accommodate larger Post Panamax
vessels. There are also plans at Port
Freeport to expand operations from
125,000 TEUs to 800,000 TEUs each year
with the addition of 90 acres of land that
www.globaltrademag.com
ISKY IMAGES
will be developed for container operations
in the coming years.
Another current Port Freeport
development is the Velasco Container
Terminal, which upon completion
will include another 130 acres of
land where 1.5 million to 2 million
TEUs will be processed annually.
The Velasco Container Terminal will
eventually house five Post-Panamax
gantry cranes.
North of Port Freeport is inland
Port Houston, which is undergoing
some big changes of its own. Thanks
to a $314 million budget approved
in 2016 by the Port Commission,
Port Houston is slated to undergo
numerous repairs on existing
properties. Current projects include
rehabilitating Wharf Three to
accommodate 100-gauge, ship-to-shore
cranes, construction of 6,500 feet of
BACK TO THE FUTURE
Though PhilaPort’s history dates back to 1701, it is all about staying
modern.
railroad track and the demolition of
several buildings and Lash Dock.
In addition to these improvements,
Container Yard 7, which will span

SHUTTERSTOCK
50 acres of land, is being constructed
at Port Houston. According to the
facility’s website, the yard will boast
reinforced and roller-compacted
concrete pavement and will be fully
equipped with water and sewer,
stormwater collection, communication
conduit and high-mast lighting. T:4.625"
Future plans for Port Houston
include adding five security cameras,
installing numerous drainage systems
and conducting general repairs
around the port.

Biggest on the East Coast?

Looking Ahead
These 50 North American container You betcha.
ports are leading the way in TEUs
and making way for anticipated
The Port of New York and New Jersey provides customized solutions
growth in the future. From updating
for shippers of every size. We offer more service variety than any other
security systems to survive in an port on the East Coast. And to keep your supply chain running efficiently,
increasingly “cyber” world, to fixing we are investing an additional $1.2 billion in Port infrastructure.
irrigation issues and repairing With six operators, two rail services, multiple trucking services,
dilapidated structures, more and and the ability to handle every type of cargo, we can accommodate
more ports are turning their focus your business needs. And we have achieved navigational clearance
to customer service, making their at the Bayonne Bridge of 215 feet to receive larger ships of 18,000 TEUs.
That’s what we call delivering the goods.
facilities more modern, efficient and
comfortable.
Additionally, many ports are
dredging deeper and wider channels
to make room for larger Post

T:7.25"
Panamax, Super Panamax and Neo
Panamax ships that are quickly
becoming the norm. These ships don’t
just enable shippers to ship more
product at once, they also create a
major savings in time and money for
both the shipper and the ship. Plus,
with fewer ships in the water, this
larger class of Panama ships allows
for a greener footprint, reducing
emissions. Larger ships also mean
more work unloading, and thus have
the potential to generate more jobs,
boosting local economies—and isn’t that
what trade is all about? n

CALM SEAS
A $350 million improvement project comes to the Port of Virginia
in 2019.
 OCEAN LOGISTICS/CARRIERS
Why We Love These Ocean Carriers
THEY’RE INTRODUCING CUTTING-EDGE DIGITAL TECHNOLOGY TO BENEFIT SHIPPERS
A
BY PETER BUXBAUM
s mobile technology and
applications become more
sophisticated, and ubiquitous
in commercial, professional,
and everyday settings, shippers have
come to expect that ocean carriers
provide them with electronic shipment
management tools that are sophisticated
and easy to use. Ocean carriers have
responded with web-based, mobile
and other electronic interfaces with
customers, and a growing number are
providing platforms for shippers to plan,
process and monitor their shipments
anywhere, anytime.
These solutions are available through
online and mobile platforms as well
as through direct system integration
to enable cargo owners and freight
forwarders to manage shipments and
collaborate with business partners.
As carriers explore developments
in technology, and consider online
44 NOV-DEC 2018
offerings to benefit their customers,
understanding when and how shippers
want to receive their shipment
information has become important in
helping them better manage their supply
chains. From the shipper’s perspective,
especially in this day and age of alliance
domination of ocean container shipping,
the right technology can be an important
customer service differentiator.
Why do we love these ocean carriers?
Because they are some of the global
leaders in implementing digital
technologies for the benefit of shippers.
SEALAND
“In the old days it was impossible
for a small or midsized company to
manage their supply-chain needs by
themselves,” says Ariel Frias, director
of marketing at Sealand, an operating
unit of Maersk that handles north-south
trade in the Americas. “They required
www.globaltrademag.com
C
CM
MY
CY
a freight forwarder to do that for them.
CMY
Technology allows business owners to K
transfer goods anywhere in the world
by booking cargo, looking up rates and
getting quotes online. These technologies
empower customers and increase
the number of companies that can do
business internationally.”
Much of the connectivity between
ocean carriers and their customers is
now moving from the desktop to mobile
devices. Sealand recently introduced a
mobile app that allows users to track
shipments, share information and access
a user guide to shipping. An update to
that app was introduced earlier this year.
TWO IF BY SEALAND
Sealand is powered by Maersk, the world’s leading shipping
company.
 THE IMPORTANT THING BEHIND IOT AND BIG DATA IS THE
INNOVATION ON OPERATIONAL EXCELLENCE AND CUSTOMER
SERVICE. CONSEQUENTLY, IT CREATES A DIFFERENTIATION
FOR THOSE PLAYERS WHO ARE MOVING FASTER.
Sealand also offers satellite
communications on refrigerated
containers. Besides monitoring the status
of the cargo, this allows cargo owners to
obtain the location of a container every 15
minutes.
The carrier is also working with IBM
to apply blockchain to its processes.
Blockchain technology can be used to
connect supply chains together and
process the millions of daily transactions
in the shipping industry among numerous
stakeholders.
“We are using blockchain to allow
different parties access to data pertaining
to a specific shipment with the idea of
providing more visibility to the transfer
and release of goods,” said Frias.
OOCL
The carrier, which was recently
taken over by COSCO but operates
independently, offers a suite of services
through its website for shippers through
the My OOCL Center and through the
mobile app OOCL Lite. OOCL also makes
use of big data and machine learning
techniques to build predictive models and
algorithms on vessel movements, including
speed changes, route deviations, idling,
abnormal stoppages, potential delays and
predictive ETAs.
“By having earlier notice of potential
delays, we are able to notify our customers
more quickly of changes in schedules
so that they have timely information to
better manage their supply chains,” says
Steve Siu, the company’s chief information
officer.
OOCL shippers also have access to
multiple-carrier tools from sister company
CargoSmart, such as Big Schedules that
46 NOV-DEC 2018
leverages big data and Internet of Things
(IoT) technologies to track vessels’ actual
locations, adverse weather conditions and
other indicators that may potentially affect
vessels’ schedules.
YANG MING
Last year, the carrier implemented
a new function via LINE bot, a
communications app that allows customers
to trace container and vessel status on
their mobile devices. That’s in addition
to the functionality available on the Yang
Ming website, which also includes track
and trace.
Yang Ming is working on a blockchain
initiative, as well as on IoT and big-data
analyses.
“The important thing behind IoT and
big data is the innovation on operational
excellence and customer service,” says a
company spokesman. “Consequently, it
creates a differentiation for those players
who are moving faster.”
TOTE MARITIME PUERTO RICO
Moving perishable goods such as
food and pharmaceuticals has become
increasingly important to ocean carriers,
including TOTE Maritime Puerto Rico,
which serves the mainland U.S. to Puerto
Rico trade. Carriers have implemented
new technologies to manage these cargoes
more efficiently and to monitor their status
to prevent major problems.
TOTE Maritime Puerto Rico purchased
350 new high-tech smart refrigerated
containers last year, according to Tim
Nolan, the company’s president.
The carrier’s “entire reefer fleet is
equipped with machine-to-machine
telematics technology that maximizes
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safety and efficiency of supply-chain
operations and provides clients crucial
real-time, end-to-end visibility of their
shipments,” Nolan says.
ZIM
The Israeli ocean carrier launched its
ZIMonitor product, which allows shippers
to track, monitor and remotely control
sensitive, high-value cargo stowed in
refrigerated containers, in 2015.
“One innovative aspect of this program
is that we integrated the monitoring device
directly into the reefer equipment,” says
Rafi Ben-Ari, Zim’s vice president for
Shipping. “Another is that we established a
24/7 control tower to take care of problems
identified by the monitoring.”
ZIMonitor alerts—which may indicate
that a container is unplugged, its
temperature is out of range or that it’s off-
route—are available over mobile devices.
Customers can receive whatever kinds
messages they want at the frequency they
request.
Zim’s communications technology is
based on cellular service, which means
that it can monitor containers while on
the road or in the port but not when they
are on the high seas. That would require
satellite communications which would
increase the cost of the service beyond
what Zim’s customers are willing to pay,
according to Ben-Ari.
For the shipping executive, the
technologies being implemented by ocean
carriers will have the effect of “bringing the
shipping industry a high level of service.”
“The entire industry should invest
together in these platforms,” Ben-Ari says.
“Everyone will benefit from the effort.” n
 3PLs
AFTER NAFTA
3PLS, RAIL AND TRUCK CARRIERS
YOU CAN COUNT ON TO DELIVER
TO CANADA AND MEXICO
BY PETER BUXBAUM
T
here was some uncertainty
over the future of the North
American Free Trade
Agreement (NAFTA) ever
since President Donald Trump took
office. The president repeatedly
threatened to pull the U.S. out of the
agreement, and then claimed he would
pursue a pact with Mexico and leave
Canada out.
Those fears were allayed in early
48 NOV-DEC 2018
October when the three NAFTA
partners announced the United
States-Mexico-Canada Agreement
(USMCA). The deal still must be
signed by the parties and ratified by
their legislatures, but all indications
point to a continuing North American
trade agreement going forward.
That’s important for companies
that benefited from the integrated
North American supply chains that
NAFTA galvanized. The automobile
manufacturing industry is a prime
example of how NAFTA contributed
to the development of truly North
American products.
Trucks carry 63 percent of U.S.-
NAFTA freight and are the most
heavily utilized mode for moving goods
www.globaltrademag.com
PRESTON KERES/USDA
to and from both U.S.-NAFTA partners.
Rail is the second largest mode by
value, moving 15.5 percent of all U.S.-
NAFTA freight, followed by vessel, 6.4
percent; pipeline, 5.7 percent; and air,
3.7 percent.
Trade among the U.S., Canada, and
Mexico would no doubt have continued
without a new trade agreement or
any trade agreement, but the advent
of USMCA means that supply chains
will be able to operate much as they
did before. With that established,
manufacturers want to know, “Which
transportation and logistics providers
TRIPLE THREAT
The U.S., Canada and Mexico trade partnership abides with USMCA.
DWIGHT BURDETTE

NORTHERN EXPOSURE
A Schneider National truck, which at that point was south of Ann
Arbor, Michigan, continues north.

are best to get products and components “The Monterrey region is LANDSTAR
crossborder?” Here is a selection strategically important to our Landstar System, Inc., a worldwide,
assembled by Global Trade. growth plans in Mexico,” says Ray asset-light provider of integrated
Greer, president of BNSF Logistics, transportation management solutions,
BNSF LOGISTICS “and having a local presence is key has provided Mexico crossborder
BNSF Logistics, a wholly owned to developing vendor and client services out of Laredo since 1999,
subsidiary of Burlington Northern relationships.” and has moved its operations to a
Santa Fe LLC, has been beefing up BNSF Logistics in recent years has new expanded logistics center. The
its North American capabilities in
acquired Albacor Shipping., Inc., a 31,000-square-foot facility, located on a
recent years, on both sides of the
Toronto-based company, and the Texas- 50-acre site, accommodates 450 trailers
border. The multi-modal 3PL recently
based EP Team, an air cargo specialist, and provides room for future expansion.
announced the formation of a new
providing the company with project The Landstar U.S./Mexico Logistics
subsidiary in Mexico, BNSF Railway
Servicios de Logistica, a move which cargo expertise. Service Center features a highly secured
further strengthens BNSF Logistics’ “Industrial and project cargo is C-TPAT certified site, including a 30-bay
service offering across North America. playing an important and growing role cross-dock and transload facility, along
The creation of Logistica, based in internationally,” notes Greer. with a dedicated platform and heavy/
Monterrey, Mexico’s third largest city, Much of BNSF Logistics’ industrial specialized freight area with a custom
will provide BNSF Logistics with products business has been in moving 120-ton, stand-alone bridge crane. The
additional local resources to support equipment for the oil and gas and wind logistics center is one of the largest
Mexico-based customers. energy industries. facilities of its kind in Laredo.

50 NOV-DEC 2018 www.globaltrademag.com

INTEGRATED SOLUTIONS
S U P P LY C H A I N S O L U T I O N S & D E D I C AT E D C O N T R A C T T R A N S P O R TAT I O N

Comprehensive
Contractual Logistics
Network Optimization Real-Time Tracking

Freight Pay and Audit 3D Load Configuration

Dock Scheduling

Dedicated Contract Transportation

Certified Brokerage Services

Value-Added Warehousing and Cross-Docking

WHEN IT ALL COMES TOGETHER, IT REALLY MOVES.

Optimize your entire supply chain with Ruan.
Don’t spin your wheels with an inefficient supply chain. Reduce costs
when you optimize your supply chain with Ruan, an asset-based 3PL.
From comprehensive Supply Chain Solutions to Dedicated Contract
Transportation to Value-Added Warehousing, we work with you to design
a solution that brings everything together, seamlessly and affordably.
Our people work side-by-side with your team to uncover savings and areas
for improvement. Then, our processes streamline every step of your supply
chain, from mode selection to dock scheduling to freight pay and audit. And
our innovative technology tools make your
freight-and your savings-visible. Now
you’re moving in the right direction.

TO BRING ALL OF THE PIECES OF YOUR SUPPLY CHAIN TOGETHER, CALL (866) 782-6669 OR E-MAIL SOLUTIONS@RUAN.COM.

WWW.RUAN.COM
 The new yard has a custom-designed
120-ton stand-alone bridge crane to
accommodate the ability to transload
many of the largest super loads.
“The crane is used to transfer
oversize, heavy and specialized loads
between various types of platform
equipment coming to and from Mexico,”
explains Steve Wisnieski, vice president
of Mexico Operations at Landstar
Transportation Logistics.
SCHNEIDER NATIONAL
Schneider was one of the first U.S.
asset-based carriers to expand to
both Mexico and Canada, boasting
substantial presences in both countries
since the early 1990s. Last year, the
company announced it obtained the
OK for streamlined customs clearance
moving to Kansas City Southern
Railway’s intermodal terminal near
Mexico City. Schneider has also
introduced intermodal service between
the Southeast and Montreal on a route
that bypasses the Great Lakes states.
Intermodal’s traditional selling
point has been the trade-off between
slower transit times and lower costs,
but that analysis doesn’t always hold
water when it comes to North American
crossborder trade.
“In some cases, the costs of
intermodal are the same as over-
the-road if you are going to or from a
location with constrained capacity,” says
Jim Filter, Schneider National’s senior
vice president and general manager for
Intermodal.
The trade imbalance between
Mexico and the U.S. means there is
cost to relocating capacity to Mexico
for northbound shipments. That’s
why Filter has found that intermodal
shipping rates northbound from Mexico
to the U.S. are comparable to trucks.
The same analysis doesn’t apply to the
U.S.-Canada intermodal lane, according
to Filter, because of the greater relative
balance in trade between those two
countries.
WERNER
Werner Global Logistics is an asset-
52 NOV-DEC 2018
based logistics services provider and
a division of the well-known trucking
company. The company recently
added Werner Final Mile services that
accommodates deliveries for eCommerce
customers throughout North America.
Werner provides trucking services from
the U.S. to Mexico with its own assets,
from loading to crossing border to
delivery into the interior of Mexico.
“Technology is a huge part of the
services we provide our customers,” says
Craig Stoffel, a company vice president.
“We are able to provide visibility right
down to the individual item level. Today
we can execute much of the supply
chain hands-free.”
CSX TRANSPORTATION
The railway’s Valleyfield terminal,
40 miles outside of Montreal, provides
shippers additional capacity when
shipping freight between the U.S. and
Eastern Canada. Opened in late 2014,
Valleyfield delivers intermodal access to
Canadian distribution and consumption
markets. Valleyfield provides on-site
border clearance capabilities, facilitated
by a 10,000-square-foot, secure
container processing facility and access
to the Canadian government’s VACIS
truck scanning system. This machine
is brought on site as required and is
capable of more than 25 scans per hour
of an entire vehicle to clear freight into
Canada.
“The Valleyfield intermodal terminal
provides shippers an alternative
capacity solution when shipping freight
between the U.S. and Eastern Canada,”
says a CSX Transportation official.
“Shippers converting freight from the
highway to intermodal rail are able to
secure additional capacity and lower
transportation costs thanks to the
expansive market reach of the CSXT
Intermodal network.”
CSXT Intermodal service between
the eastern United States and Mexico is
available via a service called Streamline
Passport, a door-to-door solution for
shippers to more than 100 Mexican
locations. Passport rates include
all border fees, fuel surcharge and
www.globaltrademag.com
container per diem charges in Mexico.
CSXT Intermodal ensures that all
customs requirements are met when
shipping cross-border freight.
KANSAS CITY SOUTHERN
KCS is the primary rail carrier
handling rail shipments to and from the
U.S. and Mexico, and its investments
in recent years have gone a long way
to make U.S.-Mexico cross-border rail
quite seamless. Shippers on the KCS
enjoy customs pre-clearance—which
means that shipments are delivered
directly to their destinations without
a stop at the border—for faster service
than trucks can offer.
The railway’s Mexican arm, Kansas
City Southern de Mexico (KCSM), in
partnership with Canadian National
Railway, provides trans-border services
that allow intermodal shipments
to cross into Mexico prior to being
inspected. The new inspection points
are located in Mexico City at KCSM’s
Puerta Mexico Intermodal Terminal
and Terminal Ferroviaria de Valle de
Mexico’s (TFVM) Pantaco Intermodal
Terminal.
Last year, Kansas City Southern
CEO Patrick Ottensmeyer joined U.S.
and Mexican customs officials in the
dedication of a new Unified Cargo
Processing facility at the Laredo, Texas,
railroad border crossing. In addition
to sharing security technology and
processes between U.S. and Mexico
officials, the new facility streamlines the
documentation review of northbound
trains and conducts Mexico export
processing at the U.S. railhead.
“Demand for rail shipments across
this busiest international rail gateway
in both directions will continue to
increase in the future, particularly
with growth in U.S. agricultural and
future energy exports to Mexico,”
Ottensmeyer points out. “New and
innovative ways to keep this trade
moving securely and efficiently over
the border will be needed in the future
to expand trade between the U.S. and
Mexico and make North America even
more competitive.” n
EDUCATION
INTELLIGENCE
REPORT
CUTTING THROUGH THE
SUPPLY CHAIN MBA HYPE
BY PETER FRERICHS
S
upply chain management
(SCM) in 2018 is a term so
widely used that it’s hard to
imagine it’s only been in existence
for roughly 35 years. The strategic
coordination of processes and
functions across a given company’s
supply chain, the end goal of good
SCM is exceptional value for the
customer, all the while removing
inefficiencies and bottlenecks along
the way. Urban lore has it that
the term first surfaced in the early
1980s when a consultant at Booz
Allen Hamilton referenced the
“management of supply chains, or
supply chain management” in an
interview with the Financial Times.
SCM caught fire and the rest is
history.
As with any fundamental, and
fast developing business niche, firms
need people specialized in that area
to gain a competitive advantage.
This is where the Master of Business
Administration (MBA) in SCM comes
into play. A typical MBA program will,
of course, touch on SCM concepts, but
SCM will be one of perhaps 10 or even
www.globaltrademag.com
SHUTTERSTOCK
15 concepts within the overall degree.
For generalists, an MBA is excellent.
But if SCM is the focal point, an MBA
in SCM is the intelligent route.
Putting together the pieces and
making sure everything functions
smoothly are SCM at its core. The
MBA in SCM is for you if you enjoy
organizing moving parts, managing
people (often simultaneously locally
and around the globe) and staying on
top of global trends. The MBA in SCM
provides core business foundations but
RUN ON ADMISSIONS
The MBA in SCM is for you if you enjoy organizing moving parts.
NOV-DEC 2018 53
IN THE ECOMMERCE
WORLD, SCM IS
TAKING NEW FORMS,
AN OMNICHANNEL
APPROACH THAT
CONSIDERS CUSTOMER
PREFERENCES
DIGITALLY ACROSS

BIGSTOCK
A RANGE OF
INTERACTION
POINTS TO MEET
THEIR REQUESTS
AS EFFICIENTLY AS
POSSIBLE, NO MATTER
THEIR LOCATION.

with a singular focus on operations.
A common question is: What
types of jobs are available for folks
with an MBA in SCM? To start,
such positions as inventory control
manager, purchasing manager or
vendor managed inventory coordinator
are commonplace. These are mid to
even upper level positions at some
firms which often lead to top-level
management positions down the line.
In the eCommerce world, SCM is
taking new forms, an omnichannel
approach that considers customer
preferences digitally across a range
of interaction points to meet their
requests as efficiently as possible, no
matter their location.
The MBA in Operations and SCM
from Michigan State University is one
of the premier choices for those seeking
a higher degree in SCM. While it is
hard to pin down which institution first
began to offer SCM courses, Michigan
State was the first to offer the SCM
degree and continues to count on a
world-class faculty base and pedagogy
that is second to none. Manufacturing
Design and Analysis, Integrated
Logistics Systems, Total Quality
Management and Service Supply
Chains are just a handful of the classes
incoming students have access to.
Another fantastic option is the
MBA in SCM at Pennsylvania State
University. To the chagrin of Michigan
State, Gartner Inc. rated the MBA
in SCM at Pennsylvania State No. 1
a couple years back, propelling this
two-year program to the forefront. An
interesting wrinkle with the Penn State
program is during the last spring term
students have the chance to travel
abroad as part of the Global Immersion
program to witness SCM and other
business facets in play at leading firms
everywhere from Turkey to China to
Peru or India.
The hype around SCM is real and
growing. A quick search of leading
programs is a great first start, options
are plentiful, and the future indeed
bright. n

54 NOV-DEC 2018 www.globaltrademag.com

BANKING

SURVEY
SAYS …
THE DIGITALIZATION OF
TRADE FINANCE PUSHES ON
BY OLIVIER PAUL

T
he International Chamber
of Commerce (ICC)
Banking Commission’s
10th annual Global
Survey on Trade Finance reveals
that digitalization of the sector is
increasing, although obstacles remain

INTERNATIONAL CHAMBER OF COMMERCE

in the path toward efficient and
paperless trade finance.
The survey, which gathered
insights from 251 respondents in
91 countries, indicates that a key
barrier to digitalization is the lack of
standardization throughout the sector.
This indicates work is still needed
in supply chain finance (SCF) is also This is apparent within SCF platforms
to drive forward the digital agenda,
gathering momentum. SCF, which and their lack of common standards
although progress to date has been
usually involves financing through for exchanging data.
positive.
an online platform, is providing a As a result, some 32 percent
Download the full ICC Global
growing number of banks with a of respondents with proprietary
Survey on Trade Finance at: http://
strong alternative to traditional trade systems reported issues due
www.iccwbo.org/global-survey-report.
finance. What’s more, some 56 percent to the lack of interoperability.
The move toward paperless trade
of bank respondents that offer SCF Nevertheless, over 60 percent
finance has been a long-standing
stated they had already developed of banks said they were moving
objective for many in the industry.
their own proprietary systems rather toward further digitalization, while
And, as our 10th annual survey
than rely on an outsourced platform. just 7 percent indicated they had
indicates, digitalization is beginning
Nonetheless, the benefits of
to gain significant traction. Some
implementing technology solutions in
45 percent of respondents to this FRENCH CONNECTION
trade finance processes have not been
year’s survey indicated they intend
felt by all banks, with only 9 percent The International Chamber of Commerce (ICC) Banking Commission
to prioritize digital trade and the and Global Credit Data (GCD) recently partnered to strengthen
of respondents agreeing digitalization
development and deployment of analysis within the ICC Trade Register, the banking industry’s leading
had improved efficiency to date.
platforms over the next one to three source for risks in global trade and export finance. Shown are David
Divergent standards are cited as a key Bischof (left), senior policy manager at the Banking Commission,
years.
reason for the lack of improvement. and Philip Winckle, GCD executive director.
In a related development, interest

www.globaltrademag.com NOV-DEC 2018 55

no plans to implement technology
solutions in their trade finance
offerings.
ENDURING PROBLEM:
THE TRADE FINANCE GAP
Certainly, digitalization of the trade-
finance sector is aimed at improving
efficiency and processes, which should
allow for greater trade finance capacity.
And that should help relieve one of the
greatest concerns for trade finance: the
trade finance gap.
The difference between the demand
and supply of trade finance currently
stands at US$1.5 trillion, according to
figures from the Asian Development
Bank. What is more, some 22 percent of
respondents expect the unmet demand
to increase in the next 12 months.
Nonetheless, the survey indicates
a positive outlook on the current and
future provision of trade finance. Two
thirds of respondents declared the
amount of traditional trade finance
they provided in 2017 was higher
than the previous year. SCF provision
is also increasing, with 43 percent
of respondents indicating their SCF
business grew in the past year.
In total, respondents to the survey
provided over US$4.6 trillion in
traditional trade finance and US$813
billion in supply chain finance last year.
Over the next one to three years, some
41 percent of respondents expect the
trade-finance gap to shrink.
56 NOV-DEC 2018
REGULATION:
KEY BARRIER TO PROVISION
Unfortunately, regulation remains
one of the major barriers preventing
the bridging of the trade-finance gap.
The survey revealed that regulatory
compliance requirements are still
inhibiting banks’ ability to provide
trade finance.
Some 90 percent of respondents
highlighted regulatory compliance
as a major obstacle to growth.
Know Your Customer and Know
Your Customer’s Customer (KYC/
KYCC) obligations remain an issue
for trade finance providers, with 18
percent of respondents to the survey
citing compliance with KYC/KYCC
regulations as the reason for a decrease
in their provision of trade finance.
What’s more, some 40 percent of
respondents revealed the requirements
were already a persistent challenge for
SCF delivery.
The survey also outlines regulation
to counter the financing of terrorism
(CFT) as a key concern. Some 56
percent of respondents have serious
concerns about the impact of CFT
regulations on their ability to provide
adequate trade finance in support of
cross-border trade.
While practitioners recognize
the need for adequate compliance
measures, the lack of clarity
surrounding regulatory expectations
www.globaltrademag.com
has led to overly stringent, self-imposed
industry measures. Fulfilling all these
regulatory requirements consequently
represents an unnecessarily resource
and time-heavy burden for banks.
LOOKING AHEAD:
WHAT TO EXPECT?
Despite these issues, the survey
revealed a generally positive outlook on
the future of the trade-finance sector.
Some 73 percent of respondents to
the survey expect trade financing to
grow over the next 12 months. Banks,
especially, see the potential for SCF,
with 91 percent of bank respondents
expecting revenue growth from SCF in
the next one to three years.
Regarding the potential for future
digitalization, respondents agree that
continued investment is necessary,
with 46 percent believing the long-term
focus should be on implementing and
leveraging the opportunities from new
technologies.
Importantly, the implementation
of common standards is necessary to
increase efficiency and market capacity,
while enabling cost-effective due
diligence. n
Olivier Paul is
head of Policy at the
International Chamber
of Commerce.
 SITE LOCATIONS
POWER UP!
HOW UTILITY COMPANIES ARE MORE THAN PREPARED TO ENERGIZE
ECONOMIC DEVELOPMENT
BY TAYLOR GIRARDI-SCHACHTER
T
he site selection process
can be complicated and
costly—and many companies
can use all the help they
can get. Thankfully, local economic
development corporations can offer
incentives and assistance to new
businesses entering their community.
But in some places, such as Raleigh,
North Carolina, and Bloomington,
Indiana, the local utility companies are
taking it a step forward by “energizing”
the economic development process
through abatements and incentives
to incoming businesses. The best part
about it: the utility company goodies
are in addition to the incentives
www.globaltrademag.com
SHUTTERSTOCK
provided by local economic development
agencies.
We spoke to Brenda Daniels,
manager of Economic Development
for Raleigh-based ElectriCities of
North Carolina, and Jeremy Sowders,
Economic Development coordinator at
Hoosier Energy in Bloomington, about
how their utility companies are going
the extra mile for incoming businesses.
Global Trade: How is your
company prepared with the
ENERGETIC TEAM PLAYERS
More utility companies offer expertise and incentives to businesses
moving or opening within their service areas.
NOV-DEC 2018 57
 AS A DISTRIBUTION FIRM FOR REFRIGERATED
PRODUCTS, THERE’S NO ROOM IN OUR BUSINESS FOR A

When your success depends upon

storing and moving things that need
to remain cold or frozen, you want
the hottest names in the business.
That’s why Interstate Warehousing
turned to Johnson County REMC and
Hoosier Energy for their operation
in Franklin, Indiana. Not only did
they get a key location, they also
got a team that understands
their need for 24/7 energy
and the ability to adjust
load demands as needed.
And Hoosier Energy has
been there every step of
the way. Including four
expansions. If you’re in
logistics, we’re the
logical call.

Grant Chapman
Facility Engineer
Interstate
Warehousing

HOOSIER ENERGY RURAL ELECTRIC COOPERATIVE IS AN EQUAL OPPORTUNITY EMPLOYER.


necessary tools and resources, beyond
infrastructure, to help companies
think holistically about their needs?
Sowders: First, our team has a lot of
experience–about 100 years of combined
experience in economic development
between all of us that runs the whole
gamut through local, regional and
state. So, we have lots of experience and
knowledge working for us.
We probably work more often with
state and local economic development
partners. On the business side, we have
lots of tools available to help businesses
to price things out such as an abatement
estimator, and a tool that can help them
see what things cost in Illinois and
Indiana. We even have a workman’s comp
estimator. The tools we built provide
quite a holistic view for a company to
make a site location decision, because we
don’t want a company to make a wrong
decision.
Ultimately, our goal is to help the
company make the right decision for their
business. Not all will come to our service
decision, but we believe doing the right
thing will pay in the long run.
Daniels: We approach it to look
at it from their side of the table. We
discuss what they need to look at when
considering a site location. Once we’ve
put everything on the table, then we
narrow down the site or building that fits
their needs.
How are utility companies playing
www.globaltrademag.com
BIGSTOCK
a role in site visit coordination with
the company?
Sowders: In most cases, we play a
subordinate role to our state partners.
We will work closely to make sure
infrastructure information is readily
available with schematics lay out,
and that engineering is on standby, so
companies can make decisions quickly.
On some occasions we do our own lead
generation if we’re out on the forefront
with businesses. We do our best to listen
to their needs, help them identify sites,
ALL AGLOW
Incentives from utility companies can help jumpstart local economic
growth by encouraging companies to take a second look at a location.
NOV-DEC 2018 59
 WHAT ARE Smart Sites?
WE CALL THEM

SMART SHOVEL-READY for development

SITES
ON-SITE municipal electric service

WATER & SEWER within 500 feet

WITHIN 5 MILES of Interstate or Interstate-quality highway

YO U ’ LL C ALL TH EM
REVIEWED & QUALIFIED by consultants and engineers
A N O - B R AI N ER
Smart Sites are an excellent choice for companies that are
ready to grow now.

Faster construction, fewer uncertainties and less risk for

companies and site selectors alike— that’s the genius of the
Smart Sites qualification program. But that’s not all. Our many
Smart Sites are located in some of the best places in America
to live and do business with easy access to international
shipping and transportation.

To learn more about these properties and our growing list of

other Smart Sites, contact Brenda Daniels at 800.768.7697
ext. 6363 or bdaniels@electricities.org. It’s a no-brainer.

Greenville Kinston Shelby 4 By

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US 7 WalMart
Distribution
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GREENVILLE, INDIGREEN KINSTON, HIGHWAY 70 SHELBY, WASHBURN SWITCH

CORPORATE PARK: INDUSTRIAL PARK: INDUSTRIAL PARK:
95 acres, Smart Sites qualified 34 acres, Smart Sites qualified 64 acres, Smart Sites qualified
US 264 (1.2 mi) US 70 (0.07 mi) Future US 74 Bypass (0.4 mi); US 74 (1.25 mi)
Sale price: $30,000 per acre On-site rail: Norfolk Southern Rail: CSX
Sale price: $22,500 per acre Sale price: TBD

help them do what they do–either way
we try to serve the company to the best
of our ability and meet their individual
needs.
Daniels: We have a “soft landing
package” where we do everything for
them before they arrive. We make
out the itinerary with the necessary
appointments and review it with them
prior to them arriving. We pick them up
at the airport and transport them to their
hotel of which we reserve all rooms for
them. We have the initial meeting and
discussion about the upcoming itinerary
for the next day or two.
We schedule all visits with the county
developers and/or cities and towns that
they will be visiting. Once the visit is
complete, we take them back to the
airport for their flights.
Regarding a huge site selection
factor of energy availability, how
is your company positioned to
understand how company operations
would impact existing service
infrastructure? Can you provide
resources to meet specific energy
needs on the timeline needed?
Sowders: We have a strong team of
engineers who work in power supply
and delivery. The minute we understand
a company’s power needs, we can
serve them. We can usually turn that
information around in about 24 hours.
We’re uniquely equipped to be
attractive to companies. We have an
economic development rider (EDR) that
we can offer our companies for the first
six years they are in business, which is a
phase-in of their full electric bill. It starts
at a 30 percent discount and the discount
decreases by five percent each year until
they are paying full price. It averages to
a savings of about 17 percent for the first
six years.
We also have a different model and
make-up than most utilities. We can be
more flexible with our rate structure. We
can talk to a company one-on-one and
adjust the rate according to their needs to
www.globaltrademag.com
BIGSTOCK
better fit their budget.
Daniels: We work closely with all
of our communities and discuss the
project with them prior to the site visit.
If a large 10 MW customer is looking,
for example, we make sure that the
community is prepared for this into their
substation. If a new substation needs to
be constructed, all of the information is
available during the visit so that they can
discuss everything. We know pretty much
ahead of the visit if the community’s
infrastructure can handle the project.
* * *
Economic development partnerships
like the ones between ElectriCities and
Hoosier Energy and their respective
economic development councils don’t
just benefit the business, but the entire
community. Offers of incentives and
savings give incoming businesses fewer
things to worry about, allowing them to
focus on creating jobs and operations. n
NOV-DEC 2018 61
 AIR CARGO LOGISTICS

SHIPPERS & AIRLINES

AN EVOLVING RELATIONSHIP
CARRIERS ARE SEEKING MORE DIRECT RELATIONSHIPS WITH CARGO OWNERS
BY PETER BUXBAUM

AIR BRIDGE CARGO

62 NOV-DEC 2018 www.globaltrademag.com

T
he question of how shippers
should approach air cargo
carriers is a complex one,
for a number of reasons.
Airlines have traditionally
eschewed dealing with shippers, even
larger ones, to say nothing of those that
won’t offer them much business—opting
instead to deal almost exclusively with
airfreight forwarders and consolidators.
“Customer acquisition at scale is
a messy process,” said Zvi Schreiber,
CEO of Freightos, an online freight
platform. “Customer management can be
expensive and hands-on, especially in an
error-prone industry like freight.”
But that situation is changing,
thanks to increased competition from
ocean transportation options and the
advent of digital technologies that make
it easier for carriers to connect directly
with shippers. Shippers of high-value
products like pharmaceuticals and other
life-science cargoes, especially, may see
airlines coming directly after them for
business.
Whether a smaller shipper should
deal with one or more forwarders or with
air cargo carriers directly will depend
also on the extent to which a shipper
owns and manages its transportation
processes. Online retailers, especially,
are increasingly relying on air to speed
deliveries to their customers. Many of
the big ones are also taking ownership
of their transportation and logistics,
a lesson that should be considered by
the up and comers. Outsourcing those
functions to one or more forwarders may
be a good idea, depending on the shipper,
but many forwarders are still technology
challenged and don’t move at the pace
expected in 21st century commerce.
That brings us to technology—and
why it is altering shipper/carrier
relationships. The growth in online
platforms have created greater
transparency in the logistics space—
including air cargo—and could make
direct relationships between shippers
and air carriers more feasible.
The air cargo industry has posted
some impressive numbers of late,
including a nine-percent growth in global
demand last year. But a tight airfreight
supply/demand picture continues to push
rates up, which is giving shippers pause.
Air cargo has appealed to
shippers of high-value products like
pharmaceuticals, electronics, machinery
and produce, but higher airfreight rates
have galvanized an emerging ocean
option for pharmaceuticals and other
perishables. That competition has
interested airlines in developing more
direct relationships with shippers.
For large online retailers like Zulily,
transportation and logistics have
emerged as core competencies. Given
the desire of customers to receive
their orders quickly, the company
often employs airfreight for items that
originate overseas.
“We fly our international inbound
product and have established automated
processes that assist U.S. Customs to
approve our freight to its destination
quickly,” says Rudy Landram, Zulily’s
vice president for Transportation and
Vendor Operations.
Zulily’s ownership of freight processes,
fulfillment and deliveries means it
stands in a relationship with its vendors
similar to that of a third-party logistics
provider. And one thing Zulily has in
common with leading 3PLs is a bias
toward building proprietary systems
to manage supply chains, systems that
allows the company to be nimble and
flexible.
Cutting-edge freight forwarders
have taken to deploying systems like
Zulily that are proprietary and designed
to enhance the customer experience.
Flexport, a full-service ocean and air
freight forwarder, has deployed a digital
platform developed in the past few years
to incorporate the latest data analytics
and decision support features of modern
software. Systems such as those provided
by Flexport want to shake up airfreight
forwarding, while maintaining the status
quo of having shippers deal with airlines
through forwarders.
“The last holiday season saw a big
impact on airfreight with growth in
eCommerce and customer expectations
for speedy deliveries,” said Stuart Leung,
www.globaltrademag.com
vice president for
Operations and
Logistics at Flexport.
“Amazon has set
high expectations
and everyone is
trying to catch up.”
Some new technology, such as that
offered by Freightos, aims to shake
things up even further by changing
the cost/benefit equation of user
acquisition and encouraging airlines
to expand direct sales to small and
midsize companies. “We expect to see
more carriers using digital channels to
sell directly to shippers, even to small
shippers,” said Schreiber.
“The new breed of digital freight
forwarders ply wares similar to
traditional freight forwarders but
use technology stacks designed and
built bottom-up with the aim to better
serve customers,” Schreiber added.
“The combination of customer service
and automated process means that
companies like Flexport are taking
enterprise forwarders head-on.”
But the digital forwarders face
significant hurdles ahead. “They compete
with larger forwarders that leverage
volume for lower carrier prices, making
it harder to win on price,” said Schreiber.
“In addition, as traditional forwarders
and carriers steadily digitalize, the
competitive edge provided by tech may
be eroded.”
Trade is a rapidly evolving
business and, especially for those
companies making their initial foray
into eCommerce, 3PLs are often the ones
that are able to provide quick and flexible
solutions. The latest developments could
turn some business models on their
heads. It’s hard to say what the future
holds, but one thing is certain: Shippers
and their service providers had better
stay on their toes. n
LOOKING UP
Technology makes direct relationships between shippers and
air carriers more feasible.
NOV-DEC 2018 63
 BUSINESS TRAVEL
HONG KONG 101
BUSINESS TRAVELERS MUST BE CULTURALLY AWARE
H
BY PETER FRERICHS
ong Kong is special. In
fact, “special” is part
of its classification,
a “special
administrative region
of the People’s Republic of China.” A
newly formed colony of the British
Empire post the First Opium War in
1842, the territory was held by the
Brits until 1997, when it was retuned
to China but with the request that
the area be maintained as “special,”
a government distinct from that of
mainland China.
The Chinese accepted and with a
population of roughly 7.5 million folks
64 NOV-DEC 2018
crammed into 426 square miles, it is
clear people want to be in Hong Kong,
which is the world’s seventh largest
trading entity. Firms from all over the
world conduct a range of business in
Hong Kong, where English is the most
common language. While Hong Kong
is chock full of skyscrapers and other
“western” symbols, there are several
cultural sensitivities one should be
aware and mindful of as a business
traveler to these 426 square miles in
southern China.
First, hierarchy is still very much
a major part of Hong Kong culture.
Greeting business counterparts
www.globaltrademag.com
BIGSTOCK
with their title and surname is
recommended and if presented to a
group of Hong Kong businessmen
and women, do intend on greeting
the eldest of the group first. Second,
a handshake and a slight bow is
commonplace and avoid any other
contact beyond that of a handshake.
Pats on the back and grabbing an
elbow while shaking hands are no-nos.
The less physical contact the better.
NIGHT LIGHTS
The bright skyline is not the only thing that impresses in
Hong Kong.
2 Port of Long Beach 37 Port of Virginia 51 Ruan

3 Global Trade App 38 Port of Corpus Christi 58 Hoosier Energy

5 Pilot Freight 40 Port of Georgia 60 Electric Cities

7 Port of Galveston 41 Port of Vancouver 67 Choose Texas

11 Brownfield, Texas 43 Port Authority 68 Emirates Sky Cargo

of NY/NJ

13 Watson Land Company

45 Port of Baltimore
15 IANA-Intermodal
47 Port of Brownsville
17 Atlanta International
Airport 49 Amistad

20-21 Center for Site

Location Assistance

23 Plant City Economic

Development

29 Michigan Economic
Development

31 Irvine, California

33 Port Arthur Economic

Development

www.globaltrademag.com NOV-DEC 2018 65

 A common mistake many travelers
make when visiting Hong Kong is
referring to residents as Chinese.
It is understandable as the official
languages are Chinese and English,
the regional language is Cantonese,
and 92 percent of inhabitants are
Chinese. But again, Hong Kong is
a special administrative region and
Hong Kongers like to be referred to
as Hong Kongers, not Chinese. If you
intend on presenting a gift to a business
counterpart(s), avoid distributing
presents in the denomination of 4.
The number represents “death” in
Cantonese, and that’s a bad way to
begin what you’d like to be a fruitful
relationship. Lastly, be careful with
social drinking. Attempting to keep up
with Hong Konger off-hours “business
meeting” drinking could place you in
a perilous position come the following
morning. Be present but avoid going

shot for shot.
When it comes time to pick an area
to stay in, it is true that the plethora
of hotels and activity in Hong Kong
can be overwhelming. From a business
perspective, Central Hong Kong is the
financial center of the city and located
in the general vicinity of some of the
more visited spots such as Lan Kwai
Fong (a series of small streets with
restaurants and bars) and Victoria
Peak. Downtown Hong Kong is also
within walking distance and there are a
series of affordable, luxury hotels such
as the Four Seasons Hotel Hong Kong,
Mandarin Oriental Hong Kong and
Island Shanri-La Hong Kong.
Another fantastic option is Hong
Kong’s main commercial area, Wan
Chai. In good weather one can stroll
between Central Hong Kong and Wan
Chai, which is also home to the world
famous Hong Kong Convention &
Exhibition Center. Adjacent to Wan
Chai is a neighborhood known as
Admiralty and due to its proximity,
most refer to the general area as Wan
Chai/Admiralty. Affordable, business
and luxury hotels in Wan Chai/
SHUTTERSTOCK
Admiralty are the JW Marriot Hotel
Hong Kong, Grand Hyatt Hong Kong HONG KONG
and Conrad Hong Kong.
It will be quickly evident that the IS A SPECIAL
major difference between corporate
travel and business in Hong Kong ADMINISTRATIVE
compared to many other cities in Asia is
language. English is by far more widely REGION AND
spoken in Hong Kong than Tokyo,
Seoul, Shanghai or even Mumbai. HONG KONGERS
The British influence is felt strongly,
but in conjunction with a strong LIKE TO BE
Chinese culture energy that is distinct
in Hong Kong. As such, it is always REFERRED TO AS
recommended to add on a couple days
either before or after a business trip to HONG KONGERS,
take in the city. Be it the horse racing
at Sha Tin or Happy Valley or snapping NOT CHINESE.
a photo in front of the Big Buddha at
Lantau Island, the sights and sounds
are completely unique and will keep PUT ’ER THERE
you longing for another trip back to this A handshake is fine in Hong Kong, but no grabbing an elbow.
very “special administrative region.” n

66 NOV-DEC 2018 www.globaltrademag.com

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