Archive for the ‘Carrier Support’ Category


 

The Issues and Solutions of Container Exams at the Port of Vancouver

Container Exams at the Port of Vancouver

Importers like you are frustrated with the lengthy delays and subsequent costs of Canada Border Services Agency (CBSA) container exams moving through Canadian Ports, especially in the Port of Vancouver. Let us take a closer look at the cause, reasons for extended delays, and the associated fees with the current CBSA Vancouver container exam program.

Why the Trade Community is Frustrated With Container Exams in Vancouver

According to the Canadian International Freight Forwarders Association (CIFFA) and the container examination cost survey they conducted, delays of up to four weeks were experienced in the Port of Vancouver compared to three to five days in the Port of Montreal.  Their blog post entitled “Container Examinations Out of Control” reported that their members have experienced the following with the current container exam process at the Port of Vancouver:

  • Six to seven week delays in receiving their goods
  • Thousands of dollars in unexpected costs for container exams, storage, detention, per diem and demurrage charges
  • Lost sales as a result of the delays
  • Lost goods in the case of perishables

CIFFA estimates that invoices for examination, demurrage, and storage of containers can range up to $4,000 per container. Those fees add up to millions of dollars, which are inevitably passed on to the consumer.

CIFFA argues that there is no incentive to improve inspection efficiency because container terminal operators charge daily per container storage fees of $150 or more, and shipping lines bill shippers and freight forwarders for demurrage.

Importers bear all the direct costs incurred for the exams. Importers are also responsible for all indirect costs resulting from exams such as damages or losses during the exam, lost sales, production and/or contract penalties due to delivery delays. Another cause of frustration is the unnecessary confusion an importer is faced with when the demurrage, detention, and per diem terms are often and incorrectly used interchangeably on invoices.

Tip: Always clarify in advance what shipping delay charges you face.

Why is the Container Exam Process Longer at the Port of Vancouver?

The two main factors in the delays are the location of the exam facility and the volume of containers at the Port of Vancouver.

It is important to understand CBSA and the transportation industry agreed the best option for examining marine cargo containers for contraband was to use a specialized central examination facility.  With this centralized facility, CBSA officers can conduct efficient examinations using high tech equipment in a secure environment.  The current inspection facility for the Ports of Vancouver is located in Burnaby, a fair distance away from the ports.

More than 80% of global merchandise is transported across oceans as marine cargo, and over 95% of marine cargo imported into Canada comes through five major marine ports:

  • Vancouver
  • Prince Rupert
  • Montreal
  • Saint John
  • Halifax

The three largest Canadian container ports are the Port of Vancouver, Prince Rupert and Montreal. Together, they handled five million, twenty-foot equivalent units (TEU) in 2016. Around 50% of this freight comes through the Vancouver and Prince Rupert ports. The Port of Vancouver consists of 4 container terminals with an annual capacity of just under three million TEUs per year. The volume clearly shows the one CEF/MCEF in Burnaby is busy.

Who is Responsible for the Container Exam Delays in Vancouver?

The delays experienced in Vancouver are further compounded by an already lengthy process. To gain an understanding of where issues lie we need to take a quick look at the stakeholders and their general responsibilities and possible contribution to the issue.

The Current Container Examination Process

Regardless of the Port, the container exam steps are the same as detailed below.

  1. The marine carrier reports to CBSA with information on the vessel, the crew and the routing via Electronic Data Interchange (EDI) at least 96 hours prior to arrival.
  2. The marine carrier sends cargo data via EDI to CBSA 24 hours prior to loading the cargo onto the vessel at the foreign port.
  3. Using the marine carrier’s information, CBSA performs a risk assessment at the CBSA National Targeting Centre in Ottawa.
  4. At the first Port of Arrival (POA) the vessel arrives and the containers are discharged, put through a radiation portal, and then stacked at the Terminal storage.
  5. Containers that are targeted or selected by CBSA for examination are staged for dockside exam, Mobile Large Scale Imaging or for furtherance to Container Examination Facilities (CEF) or Marine Container Examination Facilities (MCEF) for an intrusive examination.
  6. The containers, which require de-stuffing, are transported to the CEF/MCEF for fumigant testing, possible ventilation, assignment to an examination bay and offloaded and reloaded following an examination.
  7. Containers are authorized to move by CBSA from the CEF/MCEF back to the Terminal and released for transport to the Importer/Consignee.

CBSA Roles and Responsibilities

CBSA targets 1.3% of all containers for examination as it views containerized cargo as a huge risk.  Physical exams are done with the assistance of the Canada Port Authorities. They are legislated to provide facilities for CBSA inspection. These facilities are known as Container Examination Facilities (CEF) and Marine Container Examination Facilities (MCEF).

CBSA has a number of methods to examine Containers:

Container Examination Facilities (CEF) and Marine Container Examination Facilities (MCEF): Containers are moved from the marine port to the CEF or MCEF where they are fully de-stuffed, the contents intrusively examined, followed by an examination of the container itself.  CBSA has a service standard for examination, which states that CBSA will strive to conduct a marine container examination within 24 hours of the arrival of the container at the CEF or MCEF. This service standard does not include weekends or holidays. Additional time is required for fumigant testing and ventilation procedures in addition to container reloading times and containers that are resultant for contraband.

Note on fumigation: The CBSA requires testing of all marine containers for fumigants before examination. Fumigants include methyl bromide, phosphine and benzene. Fumigant testing identifies chemical levels prior to the execution of an in-depth examination. Chemical levels found to be above acceptable levels require that the container be ventilated in order to reduce the elevated chemical levels to a safe level. The maximum time that may be required to ventilate is three days. Once the contents and container can be safely examined,  the container is de-stuffed, examined, and then reloaded and returned to the port.

Large Scale Imaging (LSI) Examinations: LSI examinations are non-intrusive, dockside x-ray examinations of containers, enabling the CBSA officer to see inside the container. Anomalies deep within a container, such as contraband, can be detected, depending on the commodities density. A LSI examination can also assist in determining whether an intrusive examination is needed, and is especially useful in selective examinations.

Pier Examinations: This dockside examination is partially intrusive and involves the CBSA officer opening the container doors to perform visual inspections and a limited physical examination of the cargo closest to the door. The inspection may result in referral for an intrusive examination conducted at the container examination facility.

The CBSA is responsible only for the costs associated with their services, such as the officers examining the container and the equipment and tools required for marine container examinations. They do not bill the importer for these costs.

Goods found violating Canadian legislation may be subject to enforcement action such as a monetary penalty or seizure.

CEF/MCEF Warehouse Operators Roles and Responsibilities

CBSA informs the Warehouse Operator of the containers requiring exam and works with CBSA on priorities. The Warehouse Operator coordinates with the Highway Carriers to move the containers from the Terminal to the CEF/MCEF. They then coordinate and are responsible for the offloading and reloading of containers for presentation of cargo for exam. The warehouse operator is responsible for all truck movements at the CEF/MCEF such as moves to and from the ventilation area and examination bays.

The CEF Warehouse Operator generates the fees for presenting the goods for exam, to cover the cost of transportation to and from the examination facility and the unloading and reloading of the container. They then bill these costs to the shipping lines that in turn pass the cost on to the importer.  

Marine Carriers Roles and Responsibilities

The marine carrier is responsible to present the cargo for examination when requested by CBSA.

If CBSA requests a full container exam the marine carrier is responsible to:

  • Ensure the container is picked up from the terminal and transported to the CEF/MCEF
  • Monitor the pick-up of the container and the subsequent return of the container to the terminal after examination
  • Field any calls from the importer regarding any delays on their shipment

They must obtain any terminal charges for a dockside/tailgate and LSI exam completed at the Terminal.  If the CBSA container hold is removed after an exam the carrier then invoices the importer for the costs incurred at the Terminal. Once the importer pays the costs to the marine carrier the container will be released to the importer.

Marine Terminal Operators Roles and Responsibilities

After the Terminal Operator receives EDI data regarding the vessel and the cargo from the marine carrier they will:

  • ‘Arrive’ the cargo electronically to CBSA when the vessel arrives
  • Discharges the cargo from the vessel to the shipyard
  • Arranges for on-dock and off-dock examinations as requested by the CBSA
  • Permits containers to depart the terminal when released by the marine carrier and CBSA

Importer Roles and Responsibilities

The Importer orders goods for import and then organizes logistics or depends on third party links in the supply chain to facilitate the movement and subsequent entry of the import into Canada.

Customs Brokers & Freight Forwarders Roles and Responsibilities

Customs Brokers and/or Freight Forwarders directly represent Importers in the coordination or facilitation of the exam processes with the Terminal Operators, the Marine Carriers, Drayage Carriers and CBSA.

The Customs Broker and/or Freight Forwarders may be involved in the logistics and may pay charges on behalf of the importer as their client.  The Customs Broker and/or Freight Forwarder is generally aware that a hold has been placed on an Importer’s shipment for examination by CBSA.  Although not a responsibility, the Customs Broker and/or Freight Forwarder generally fields calls from the Importer regarding the status of the delays in the release of the container.

Highway Carriers Roles and Responsibilities

The Terminal Operator informs the Highway Carrier which containers need to be examined by CBSA. The Highway Carrier then makes a reservation for pick-up of the container at the Terminal with the Terminal Operator.

Reservations sometimes have to be made about three days in advance. The Highway Carrier then has a one-hour window around their reservation time to pick up the container at the Terminal and transport it to the CEF/MCEF for CBSA examination.

Once the examination is complete, the Highway Carrier returns the container to the Terminal. The container is then released by CBSA and can now be delivered to the Importer/Consignee by the Highway Carrier or the Drayage Company once a reservation has been made to pick the container up from the Terminal.

Stakeholder Summary

As each stakeholder carries out their responsibility, it results in more opportunities for delays. These can quickly add up to become lengthy delays.

Many of the stakeholders state there needs to be improved transparency and efficiency in the inspection process by ALL parties. CIFFA urges CBSA to address both the pricing model and the regulatory framework of the shipping lines, terminal operators, and warehouse operators surrounding container examinations across the country.

CBSA’s Action to Improve Ocean Trade

The CBSA has made a commitment in their 2017/18 departmental plan “to work with industry partners and the Port Authority in Vancouver to advance the Marine Container Examination Facility (MCEF) project over the course of the year. The opening of a new MCEF will increase the Agency’s examination capacity and enhance the facilitation of legitimate trade.”

The CBSA held a one-day conference with all stakeholders in Vancouver in September of 2017. The conference identified a number of opportunities for improvement.  Some areas of improvement included the communication between all stakeholders regarding delays, service hours, and service standards including:

  • Shipping lines, Terminal Operators and Warehouse Operators must post standard fees associated with the movement and facilitation of freight through the marine process.
  • Terminal Operators need to improve the reservation system for pickup and return of CBSA examined or targeted containers. CBSA needs to provide proof of examination, LSI exam and ventilation timelines to stakeholders.
  • There needs to be a transparent dispute resolution between all stakeholders. Use of technology for real-time status and progress of the exam providing importers and their service providers’ insight to better plan and mitigate impacts of the exam to their business and supply chains.
  • Importers need the flexibility and the option to deliver direct from the exam site.
  • CBSA needs to identify opportunities to improve efficiencies and consistencies with their targeting and examination of container freight. A clear focus on the client is necessary which is transparent with defined and measurable service standards.

Steps To Improve The CBSA Marine Container Exam Program

CBSA argues that numerous factors complicate the issue, and terminal/warehouse operators are only one part. CBSA states it is working with the Port of Vancouver, terminal operators, and other industry stakeholders to improve the system’s efficiency.

This initiative includes the construction of a new federal government container examination facility (MCEF) on Tsawwassen First Nation land which is strategically adjacent to the Port of Vancouver’s Deltaport and the new Delta iPort container logistics center.

A New MCEF in Tsawwassen

A new MCEF in Tsawwassen (TCEF) will augment the severely constrained facility in Burnaby and will initiate the new CBSA marine container examination program focusing on technology (scans) and less on manual inspections. The TCEF will consist of a new warehouse complex, which will house CBSA container examination facilities, a fumigant ventilation area, a LSI fixed building site and operator transload area in the warehouse. The facility is currently under construction and should be operational as of May 2018.

The Operator of the TCEF will charge fees such as drayage, scans, ventilation and de-stuffing. The Vancouver Fraser Port Authority (VFPA) will set the fees the TCEF Operator can charge but will consult with the Industry to ensure fees stay competitive.

CBSA and VFPA are considering options to release goods at the earliest opportunity for consignees so that delays are minimized. This would suggest that the container arrives at Deltaport and is selected by CBSA to be examined and/or LSI scanned. The container is moved from the adjacent Deltaport to the TCEF and scanned through the LSI facility. Then the container will be released or transported to the adjacent warehouse for examination, ventilation testing and then subsequently released directly from TCEF by CBSA to be delivered to the importer.

Outcome for Importers & Consumers

This post will help you gain a clearer understanding of the issues associated with the current CBSA Vancouver container examination operations. It is a complex problem, which will require all stakeholders to collaborate and take responsibility in improving their role in the process in order to provide consumers with goods that are not subject to a flawed and costly system.


If you have any questions on CBSA container exams, please leave them in the comments section below, and I would be happy to look into them for you.

 

 

 

CBSA Will Use a New Cargo Inspection System to Pre-screen Northbound US Cargo

Cargo Inspection System - Pacific Crossing 2017

 

CBSA will open the first land border

Gamma Ray Vehicle and Cargo Inspection System to improve processing of US Cargo

at Pacific Highway sometime in the summer of 2017.

Contributed by Jan Brock,

Senior Trade Advisor
Former Chief of Commercial Operations Pacific Highway crossing

Canada Border Services Agency (CBSA) announced in its Report on Plans and Priorities that it intended to invest in detection tools to assist the Border Services Officers with detecting high risk cargo.

Examinations may be performed with the use of specialized tools e.g. gamma ray imaging vehicle and cargo inspection system, ion scanners and detection dogs and may include a full or a partial offload of the goods to detect the presence of prohibited or restricted goods.” CBSA

 

Gamma ray imaging is a non-intrusive tool that cargo inspection services can use quickly and effectively to verify the presence of legitimate goods and to investigate suspicious and unknown materials. This technology assists with reducing border wait times and costs associated with cargo inspections.  

The Gamma Ray Imaging Vehicle and Cargo Inspection System being built at Pacific Highway is a stationary fixed location system contained within a building.

This technology performs the best for  detecting the presence of high density items  such as  steel or low density like narcotics.  It is capable of scanning an entire  semi truck and trailer ,intermodal shipping containers and automobiles for contraband.

This Cargo Inspection system  is a fast screening tool that will aid in facilitation of  cargo inspection at land borders. Large sized targets can be examined without unnecessarily opening or disturbing the contents of the load or incurring the cost of unloading or de stuffing the container.  

An offload will incur a cost to the importer, carrier and to CBSA cargo inspection services as it is very labour intensive.

The gamma ray image this system presents to the Border Services Officer (BSO) after the scan of the cargo and/or vehicle has been completed will assist in the officer’s decision on whether a more intrusive examination is warranted and the load may be redirected back to the warehouse for offload or destuffing by CBSA or the CBSA Contracted Cargo Inspection Service.

The efficiency, reduction in cargo inspection services and avoidance of costs associated with such action will make this new Cargo Inspection System a welcome addition to the Pacific Highway Port of Entry  and to Canadian Freight!

Have more questions on cargo inspection systems or cargo inspections services? Contact us and we are happy to assist.

For more detail please refer to the linked resource below :

Link: CBSA Report on Plans and Priorities

Want to learn more about the fundamentals of cross-border shipping? Attend a Customs Compliance Seminar hosted by Pacific Customs Brokers and learn from the experts.

Have questions or comments regarding importing to Canada? Leave them in our comments section below or email Ask Your Broker.

Update C-TPAT Benefits Increase

Update C-TPAT Benefits Increase

Since shortly after September 11, 2001, amazingly over sixteen years ago, we have all heard the buzz about the Customs-Trade Partnership Against Terrorism (C-TPAT).

To date, over 11,400 carriers, importers, customs brokers and other supply chain partners have become voluntary participants in this initiative to combat terrorism in the ever-expanding evolution of international trade. You may wonder “Only 11,400 members?” However, consider that approximately 52% of cargo (by value) entering the United States is C-TPAT approved.

Since our last update on this initiative wherein we stated that as this program evolves, more benefits would be seen by members, it is great to see more benefits come emerge. C-TPAT has become a much more dynamic program.

As the sophistication of security has increased, according the US Customs Website, the benefits of membership have also. 

Benefits of C-TPAT participation include:

  • Reduced number of CBP examinations
  • Front of the line inspections
  • Possible exemption from Stratified Exams
  • Shorter wait times at the border
  • Assignment of a Supply Chain Security Specialist to the company
  • Access to the Free and Secure Trade (FAST) Lanes at the land borders
  • Access to the C-TPAT web-based Portal system and a library of training materials
  • Possibility of enjoying additional benefits by being recognized as a trusted trade Partner by foreign Customs administrations that have signed Mutual Recognition with the United States
  • Eligibility for other U.S. Government pilot programs, such as the Food and Drug Administration’s Secure Supply Chain program
  • Business resumption priority following a natural disaster or terrorist attack
  • Importer eligibility to participate in the Importer Self-Assessment Program (ISA)
  • Priority consideration at CBP’s industry-focused Centers of Excellence and Expertise

Are you interested in learning what this initiative is all about, but have been deterred from moving forward based on how difficult it is to obtain certification, the tremendous resources it will take, and how the costs appear to outweigh the benefits? There may still be some truth to this these perceived obstacles, but most anything worth obtaining comes with a price and required effort.

So we ask ourselves, is C-TPAT certification worth pursuing? As C-TPAT continues to evolve it becomes richer and more rewarding for members. The challenges that come along with developing your procedures and policies will be quite unique to your company, as will the benefits of participation.

Benefits translate into valuable practical considerations including:

  • Cost savings – A full Customs exam can cost upwards of $500-$1000 per container. This excludes the loss of time for both carriers and consignees and could be paramount to a shipment of perishable goods.
  • Less inspections – The more parties involved in a transaction who are C-TPAT members the lower the likelihood of a cargo inspection.
  • Penalty mitigation – C-TPAT membership is considered a mitigating factor in the case of potential penalty matters.
  • Increased compliance – Ongoing familiarity with the program decreases the necessary time spent and resources involved in assuring compliance.

As the program continues to evolve, we will continue to see that the benefits outweigh the costs or perceived obstacles and disadvantages of becoming a trusted trader. While there are no commitments from Customs, the trade community has requested that Customs consider a number of new benefits for the “next generation” of C-TPAT.

Next generation benefits of C-TPAT could include:

  • Basing cargo release on 10+2 data and permitting monthly entry of cargo aligned with the periodic monthly statements
  • Expedited responses to ruling requests
  • Enhanced penalty mitigation
  • Prior disclosure benefits
  • Further lowering of the number of inspections
  • Tax incentives for supply chain security and safety enhancements
  • Mutual recognition with other countries’ approved security programs

What is involved in becoming C-TPAT certified?

  • Complete and submit the Agreement to Voluntarily Participate in C-TPAT
  • Complete and submit the Supply Chain Security Profile Questionnaire – be aware that it is possible that Customs will request or require changes and upgrades to your current processes
  • Assure that your stated procedures are followed through on, and updated as necessary

Some of the absolute must-haves or must-dos for becoming C-TPAT certified, and effective participant in the program include:

  • Having the full commitment and support from high-level company management
  • Integrating C-TPAT participation into your overall supply chain security program
  • Assigning dedicated staff to manage the certification on a continuing basis

Attend an upcoming C-TPAT Seminar:

To benefit from overall cost savings, expedited border crossings and fewer cargo inspections, it may be of interest to attend our in-class seminar on becoming a Trusted Trader. Owners, Managers and Signing Officers of companies seeking eligibility information and how to get started on the application process are recommended to take part in this two-hour course.

Feedback from a recent attendee:

“I have a better understanding on what it takes to become C-TPAT or PIP certified.” – Zori Kitanova, Global Logistics Supervisor, Whitewater West Industries

You can register to attend our C-TPAT Seminar Here:

 

This blog is a brief summation of the C-TPAT certification program. For more detailed information, please : CLICK HERE

Immediate – Declaration Accepted Notices – Timing Changes!

Immediate Update for those who submit EDI Transactions! 02-28-2017

Immediate Update

Declaration Accepted Notices  – Timing Changes!

Currently, as your customs broker we are able to see an accepted message when our entry has been reviewed and accepted by CBSA, regardless of the ACI emanifest status.

Effective March 4-5 2017,  the Declaration Accepted Notice may not be sent out until both the Release Request and the ACI eManifest is on file.

Please see the following message from Canada Border Services Agency:

With the next release of eManifest functionality expected to be available March 4-5, 2017, the timing of the Release Notification System (RNS) class of Notices (RNS, ANS, SNS, QNS) will change. These timing changes have been made to align the Legacy Notices with the eManifest Notices .

Two notable changes are:

  1.     Previously, an RNS Declaration Accepted (“Dec Accept”) Notice was sent to clients when a Release Request had been accepted and a decision had been made. This decision would be made on the Release Request and independently of other associated documents.
  1. The new eManifest design model and the supporting legislation now requires that Advance Commercial Information(ACI) cargo be submitted prior to arrival under most circumstances.
  2. Under the new eManifest design model, decisions may not be made on Release Requests until related ACI cargo is accepted in CBSA systems.

This means that the Dec Accept Notice may not be sent out until both the Release Request and the ACI cargo are on file.

Due to this change, the Dec Accept Notice may no longer be sent out when only Release Requests are on file (such as with re-manifests).

  1.     Previously, for shipments that had been referred for examination (REFER SEC) prior to arrival,  the Warehouse Operators that subscribed to RNS notices would be notified of the Request For Examination through an RNS Refer To Secondary Notice, while other trade chain partners involved in the shipment would have received an RNS Declaration Accepted notice informing them that a decision has been made on the release request. Under the new D5A design model for RNS Notices in eManifest, the Warehouse Operators will no longer receive the Refer to Secondary until the cargo has been arrived at its destination.

Due to this change, Warehouse Operators that have subscribed to the transporting Carrier’s RNS profile will now receive the RNS Dec Accept when a decision has been made on the release request and the cargo is on file prior to arrival.

Pacific Customs Brokers can process all of your import transaction needs:

In addition to the e-Manifest Filing Service, we can process the U.S. Customs entry documents by setting up the clearance of your goods into the commerce of the United States while simultaneously filing your e-Manifest.

Allowing Pacific Customs Brokers to be your sole service provider ensures that all CBP regulations are compliant and accurate thus lowering the risk of delays at the border.

Service Options

Full e-Manifest ProcessingPacific Customs Brokers will file the e-Manifest on your behalf.e-Manifest Self-FilingOnce set up, a login and password will be provided in order for you to file your e-Manifest.

Pacific Customs Brokers will include 24/7 operational support with either of the service options listed above.

For further information on e-Manifest, please contact our Client Services Team via email [email protected] or call toll-free at 877.332.8534.

Want a quote on filing from our experts – fill in the free no obligation quote form below:

Malcolm McLean – A Salute to the Brilliance of Carriers 02-2017

Malcolm McLean – 1914-2001

Salute to Carriers - Malcolm McLean

Who was Malcolm McLean?

Why is he perhaps the most important person in the history of carrier shipping?

With much respect and admiration for his ingenuity, we salute Malcolm McLean.

In our industry, as in life, we all stand on the shoulders of those who came before us.

The History of the Man:

While his name is relatively unknown today, this North Carolina trucker invented container shipping, a method now indispensable to the modern world of global trade. As amazing as that fact is, so is the personal story of Malcolm McLean.

Malcom McLean was born into a North Carolina farming family in 1914.

His father was a farmer who also worked as a mail carrier to supplement the family’s income. Struggling to assist his family during the Great Depression, a young Malcolm started pumping gas at a service station near his hometown of Maxton, and managed to save enough money by 1934 to buy a second-hand truck for $120.

 

Malcolm McLean’s very first truck!

Malcolm McLean and his First Truck

 

With that initial purchase, he was able to start a small trucking company to transport farmers’ goods and supplies.

McLean soon began hauling dirt, produce, and other odds and ends for the farming community in Maxton where reliable transportation was hardly commonplace.

Little did he know at the time that this purchase was the catalyst to set McLean on his lifelong career in the transportation industry.

Malcolm McLean the Fleet

Over the next six years, Malcolm’s resourcefulness enabled him to expand to thirty trucks by 1940. By the mid-1950s Malcolm’s company, McLean Trucking, amassed over 1700 trucks and he sold his company for $12 million dollars, a terrific sum in 1950s currency!

Keep in mind that this all happened during an economically bleak time – surrounding the Great Depression.

Why he is perhaps the most important person in the history of carrier shipping:

 

Malcolm McLean was not what we would refer to as a patient man. He was born into a world and time that demanded a certain sense of urgency. The phrase, “Time means money” is always top of mind for an entrepreneur, and most carriers of his day were – many continue to be today.

 

Waiting at the dock for between eight and twenty hours to have his truck loaded or unloaded drove McLean crazy! He was not the type of man to stand still, his every minute was spent towards a result that generated money for his business, his family and his future.

Only perhaps Jack Sparrow would hopefully relate to the extreme waits that took place for carriers when their delivery needed to go through the loading and unloading process at ports during that time given today’s efficiencies we enjoy.

 

His years in the transportation business showed McLean the need for an easier method of shipping goods. He had watched dock workers unloading goods from trucks and transferring them to ships, and marveled at the inefficiency of the process. “Wouldn’t it be great,” he asked himself, “if my trailer could simply be lifted up and placed on the ship?”

Knowing nothing about ships did not stop him from taking action!

In 1955, he gambled big on a container venture, buying two oil tankers and securing a bank loan to buy $42 million worth of docking, shipbuilding, and repair facilities. He refitted the ships and designed trailers to stack below or on the decks. One year later – he launched the solution to the problem he had little patience for and in April 1956, his first container ship, the Ideal X, departed Port Newark, New Jersey, headed for Houston loaded with stacked containers for the first time ever!

Thank you Malcolm McLeanTo you and to our carrier audience we offer a salute to the brilliance of Carriers!

Malcolm McLean 1957

 

Born 1914, Maxton, NC –   Died 2001, New York, NY

 

As McLean’s first container ship left Newark harbor, a man asked Freddy Fields, a top official of the International Longshoremen’s Association, “What do you think of that new ship?” Fields replied, “I’d like to sink that s_________h.” Longshoremen strikes ensued, but the cost of shipping dropped by a factor of a hundred. ~ PBS.org

 

Resources:

https://www.youtube.com/watch?v=YFbkVL1X9M8&t=13s
https://en.wikipedia.org/wiki/Malcom_McLean
http://www.pbs.org/wgbh/theymadeamerica/whomade/mclean_hi.html
http://hbswk.hbs.edu/item/the-truck-driver-who-reinvented-shipping

Our in-house seminar series on U.S. Trade Compliance and Canadian Trade Compliance are another great way to understand the movement, compliance and regulations around goods imported into both countries.

Have questions or comments regarding the hidden areas of risk and how to mitigate them? Share your thoughts with us. Leave them in the comments section below or email Ask Your Broker.