The role of AMS in shipping is to improve supply chain agility by offering faster customs checks at the border and ensuring no delays due to regulatory compliance failure. It also allows paperless documentation and real-time data exchange to facilitate shipping carriers and shippers for easier submission of cargo specifications and other documents. An automated manifest system was built to streamline logistics and transport operations while ensuring national security in the US. The Customs and Border Protection (CBP) utilises AMS to ensure safe and seamless trade inside and through the US borders. Let us learn more about the role of AMS in shipping.
About the Automated Manifest System The automated manifest system is a technology-driven solution used by Customs and Border Protection in the US to process and evaluate shipping documents for customs clearance at the borders. The document assessment process is automated to streamline logistics and transportation operations, improve accuracy, and enhance overall transportation and logistics chain efficiency. Introduced in 2004, AMS in shipping is used by shippers and shipping carriers to submit cargo specifications electronically. Once the authorities receive the submitted information online, they can review and assess any potential risks. It allows on-time customs clearance as the documents have been evaluated before the arrival of the shipment at the US border. The US is actively integrating automated manifest shipping to offer seamless shipping and improve the operational efficiency of logistics providers. What is the function of AMS in shipping? CBP( Customs and Border Protection) uses the Automated Manifest System (AMS) for various reasons. Let's explore its role in shipping.
Advantages of AMS in shipping The benefits of an automated manifest system in shipping are as follows-
These are the benefits and role of AMS in shipping, making it an integral technology that the US CBP uses to facilitate logistics and transport. LOTUS Containers is a global marketer of different types of shipping containers, both new and used. Located in Hamburg, Germany, they have partnered with more than 300+ container depots to extend their shipping container solutions worldwide.
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Logistics companies have switched to automation in container loading to minimize manual handling of shipping containers and improve the efficiency of the container loading process. Technology has evolved, and automation has branched into multiple forms, such as automated guided vehicles, automated mobile robots, automated palletizing systems, and automated storage and retrieval systems. All these helps minimize human interference and maximize productivity in the logistics centres.
What is container loading? Goods sailing across international borders must be efficiently packed into shipping containers to assist cargo security. Different goods are packed in shipping containers based on the cargo requirement. After selecting the shipping container type and size, the containers are loaded with cargo. Container loading efficiently places and stores goods into cargo containers for intermodal transportation. The shipping containers can be standard in size or high cube containers. The placement of goods inside the container is based on the cargo type, weight and shape. In cargo consolidation, the different ports of destination or transhipment hubs are also considered to make the shipments easily accessible when they need unloading. The containers are suitable for being transported through any mode of transport, such as ship, truck, plane, or rail, without the need to unload and reload the cargo whenever the mode of transportation is changed. The containers are ISO certified, and the container loading must also occur by adhering to ISO guidelines for the safety of goods and containers. Efficient container loading adds to the security of goods and facilitates easy customs clearances. Process of container loading The container loading process is integral to the logistics and supply chain industry. Goods are organized and stored inside shipping containers to maximize space utilization, ensure container balance during transportation, and facilitate faster cargo unloading at its destination.
The container loading process incorporates specific steps that take time and investment if done manually. Integration of automation in container loading helps improve container loading efficiency and ensure the timely completion of various processes.
LOTUS Containers is a marketer of shipping container solutions and sells various types of shipping containers in different sizes based on cargo needs. The container industry manufactures numerous shipping containers yearly to combat the shipping needs across the supply chain. These containers are often bought by container leasing companies or shipping companies, which then rent shipping containers to traders or other exporters. It is beneficial to rent a shipping container instead of buying one if your business or shipping needs are inconsistent. Container leasing offers flexibility to shippers, allowing them to switch between types of containers if the shipping needs change. Let us learn more about renting shipping containers.
What is container leasing? Traders across the supply chain import and export different types of cargo to fulfil consumer demands across the global supply chain. Goods are loaded onto various modes of transport, such as trucks, trains, ships and planes. The goods must be stored in standard shipping containers so that they can be easily accommodated onto all transport modes. Shippers across the globe buy or lease shipping containers from container rental companies, shipping companies or other companies that sell or rent shipping containers. These containers come in various dimensions and types, varying from 53-foot intermodal containers to reefer and flat rack containers. Standard and high cube sizes are available for shipping containers. Container leasing is where individuals or businesses rent shipping containers to transport or store goods. Container renting enables businesses and individuals to use any shipping container without purchasing it outright. In international trade and logistics, container leasing is quite common, where businesses involved in frequent trade rent a fleet of shipping containers based on the different container leasing agreements. Renting shipping containers is a flexible and convenient solution for businesses that want a short-term commitment to container ownership. Buying vs renting shipping containers Traders choose to buy shipping containers if they are willing to have complete ownership of the shipping containers. Purchasing shipping containers enables the shippers or businesses to take over the ownership and control of the container, and they have them as their assets. It benefits businesses with a consistent demand for exporting goods and requires transport and storage. Containers act as appreciating assets that the owner can resell after exhausting their use or refurbish them for other commercial purposes. Businesses willing to modify or customise the shipping containers based on a consistent need to ship cargo often end up buying shipping containers. This way, they have complete control over the containers and can use them however they choose. Customisations include adding ventilation systems, additional locks, electrical changes, etc. Businesses with varying demands for types of goods must keep switching between different types and dimensions of containers. Due to this fluctuating need for containers and the uncertainty of shipping demands, businesses or shippers choose to rent a shipping container. It offers flexibility, allowing businesses to analyse the current shipping needs and choose the number and type of containers to rent. Since container lessors are not owners, they do not have to incur repairs and maintenance costs like the leasing company. Businesses with budget restraints find it more affordable to lease shipping containers. Tips to rent a shipping container
LOTUS Containers offer robust shipping container services where they sell and rent shipping containers to the client. They lease different types of shipping containers, including 53-foot containers, reefer containers, and double-door containers. FOB shipping is an incoterm used while shipping goods across the supply chain internationally. It applies to maritime shipping and establishes a trade contract between the buyer and seller where they both negotiate the terms and conclude to choose between FOB origin and FOB destination, based on their benefits. It helps shipping parties to discuss and establish the point of change in ownership of the goods during their transit to verify the risk and cost transfer for paying the costs of various shipping activities. Let us learn more about FOB shipping and its benefits in international shipping.
What do you mean by incoterms in shipping? Foreign trade terms are also referred to as "incoterms, " an abbreviation for international commercial terms. These are standardised terms commonly used throughout the shipping industry in the case of international trade. It concerns trade contracts made for importing and exporting goods across borders. These terms were coined by the International Chamber of Commerce (ICC) to establish a standardised process that facilitates and regulates international trade. Since various countries across the globe get involved in the shipping business, there was a need to develop a common understanding between the buyer and the seller about different rights and responsibilities concerning cross-border transactions. Incoterms help the shipping partners define various aspects of shipping, such as the transportation of goods, risk transfer, and cost transfer between the buyer and the seller. Define FOB shipping The incoterms used in the shipping industry differ for land- and sea-based transportation. FOB is an acronym for free onboard shipping, a maritime term widely used in the shipping industry. It is a trade contract between the buyer and the seller that states the point of risk and cost transfer, obligations, and guidelines for shipping to the concerned shipping party. Based on the type of FOB, the contract is named "FOB", followed by the port's name where the risk transfer occurs, i.e., the point of the shift of responsibility associated with cargo risks from the buyer to the seller. Both the shipping parties negotiate terms and conditions of shipping to conclude so that the shipping company or the carrier is clear about the owner of the goods during the voyage. Such a trade contract is essential for avoiding misunderstandings and settling financial disputes related to the cargo, especially regarding international trade. What are the types of FOB shipping? The two types of FOB in shipping are-
Benefits of FOB in shipping The advantages of FOB shipping are-
These are a few benefits of FOB shipping that can be negotiated between the shipper and buyer to draft a trade contract for international shipping. LOTUS Containers is a shipping container service provider enriching its valuable clients with various shipping containers such as double door, flat rack and reefer containers. Integrated supply chain management is an approach to streamline resource planning for businesses where various stakeholders can collaborate to standardize the supply chain operations. Instead of having multiple business systems, the supply chain can be integrated by the collaboration between suppliers, customers, and logistics companies, all centralized to improve the flow of information and resources. The interconnected system with multiple stakeholders helps in resource management and improving the timely flow of goods. By centralizing the supply chain, businesses can integrate various functions, processes, and technologies across the supply chain network to improve efficiency. Let us learn more about it.
What is meant by integrated supply chain management? Integrated Supply Chain Management (ISCM) is a strategically planned process where multiple stakeholders coordinate to establish a standard system wherein the supply chain activities are optimized for greater efficiency. The coordinated management of all activities and operations of a company or business's supply chain helps achieve optimal efficiency, cost-effectiveness, and quick responsiveness to customer needs. In an integrated supply chain, stakeholders adopt a holistic approach that covers the planning, execution, monitoring, and optimization of the flow of goods, information, and finances in the entire supply chain. All activities, starting from suppliers to the customers, are well integrated. The aim of refining and integrating all these aspects of the supply chain with the help of stakeholder companies is to achieve a more agile, cost-effective, and responsive supply chain. It can improve consumer satisfaction, business performance, and company competitiveness. What is the function of an integrated SCM? Integrated supply chain management is primarily used to optimize moving goods, information, and finances across the supply chain, from raw material suppliers to end customers. The various functions of integrated supply chain management are-
Benefits of integrated SCM
These are a few benefits of integrated supply chain management and how it helps optimise business operations globally. LOTUS Containers is a global shipping container service provider specialising in leasing and selling different types of shipping containers. Shipping containers are steel boxes capable of storing and transporting LCL and FCL shipments across international grounds. During their transport, cargo security is one of the biggest concerns of shippers and consignees. The doors of shipping containers are installed with two locking rods on each door and the secura cam at the bottom of the right container door to minimise the risks of cargo damage. The bolt-shaped locks on the container doors are meant to be fitted with container seals to ensure that no one tampers with the shipment. The seal number of a container is an alphanumeric code that helps identify shipping containers. Let us learn more about container seal numbers.
Benefits of container seals Every shipping container has six locks on the container doors. The different types of seals- cable, bolt or e-seals are put on all or either of the six locks. The importance of container seals is as follows-
What is a Container Seal Number? Every shipping container is fixed with container seals to lock and secure the contents inside the container until they reach the destination. The seals are in two parts- base and pin that are clicked against each other. The container seals of different types have seal numbers printed on them by the seal manufacturers. Every seal has a unique number, an alphanumeric code made of various alphabets and digits printed on the base and pin of the container seal. The seal number is either given by the manufacturer or the shipping company. The bill of lading reflects this security seal number to help quickly track the shipping containers. Why are container seal numbers so important?
What are the Differences Between a Container Number and a Seal Number? The shipping containers have two sets of unique identification codes: container and seal numbers. Both of them are different from each other in the following ways-
LOTUS Containers is a leading marketer of shipping containers across the globe. We offer new and used shipping containers for lease. Maritime facilities offer shipping and storage facilities for cargo containers. The containers arriving or departing from the port are transferred to various other facilities, including inland container depot (ICD), on-dock container yard or off-dock container yard. Let us learn the difference between ICD, On-Dock CY and Off-Dock CY.
What are docks in port? Docks in shipping are maritime infrastructures that extend from the coastline into the waterways to facilitate the berthing of large sea vessels. They are also known as piers or wharves and are a part of the ports. Docks establish a physical connection between the sea and the shoreline, as large vessels cannot be brought to the coastline for berthing. All shipping ports have a dock to allow commercial ships to load and unload shipping containers or passengers. The shipping containers are carried from the docks through forklifts and other vehicles to the container terminal. Port docks are well-equipped with a workforce and machines to facilitate faster loading and unloading processes. These maritime infrastructures enable various logistics activities based on their ability to berth different types of containerships on the shoreline. What are on-dock CYs and off-dock CYs? After being unloaded from ships or before loading onto large sea vessels, shipping containers are kept at the container yard, also known as container terminals. Container yards are maritime facilities where shipping containers are prepared for transit by stuffing them with the intended cargo. The container yard can be of two major types- on-dock container yard and off-dock container yard. On-dock container yards are maritime facilities located inside the port infrastructure. The shipping containers from docks are moved onto on-dock CYs that help in saving relative time spent in removing containers from the main dock. Such container yards benefit shipping carriers by minimising port congestion and improving vessel turnaround time. For example- If the container yard is located inside the port, moving the containers from the dock to the yard becomes more accessible and faster, and cargo stuffing can be done in a reduced timeframe. Off-dock container yards are not a part of the main shipping ports but are regarded as maritime infrastructures that may be located near or away from the main ports. Shipping carriers often prefer moving freight containers to off-dock facilities as a means of temporarily storing containers. It is a prime site for cargo consolidation for less-than-load (LCL) shipments. For example- If the ports are already loaded with enough shipping containers, the carriers take it to an off-dock CY for temporary storage, unloading, or consolidating multiple cargoes into a single container. What do you mean by ICD? Inland container depots, also referred to as dry ports, are maritime facilities that are located away from the major ports and are situated in the hinterlands. They are a site for handling documentation, container loading and unloading, container inspection and boosting intermodal transportation. It benefits the sea custodians, customs authorities and freight forwarders in a seamless import and export business. ICDs are temporary storage and maintenance facilities for shipping containers until they can be moved to shipping docks. Equipped with technology, it is easy to maintain the inland container yards and offer timely freight shipments to the importers and exporters. Difference between ICD, On-Dock CY and Off-Dock CY
LOTUS Containers is a global marketer of shipping container services that allows clients worldwide to buy and lease shipping containers of multiple types. The global supply chain is changing its methods of operation and integrating green initiatives. These initiatives enable higher operational efficiency and revenue generation caused by better use of resources, waste management, and operational management. An essential part of the supply chain, the logistics industry is adopting green methods in every aspect of its work to enhance productivity and customer satisfaction. Let us learn about the innovations in green logistics emerging as environment saviours. What is green supply chain management? The green revolution has triggered a ripple effect in all major industries, including logistics. Environmental issues have risen over the past few decades and have reached an alarming rate. The logistics activities utilise a lot of fuel and emit greenhouse gases causing harm to the environment. To minimise these, a green initiative has emerged to help the trade industries adopt environment-friendly ways of carrying out trade activities. Green supply chain management (GSCM) allows industries to integrate environmentally sustainable processes into every aspect of the traditional supply chain. It works right from the manufacturing process, working towards the last delivery process to ensure that the supply chain is switching to green practices. It helps in conserving resources and controlling greenhouse emissions to minimise carbon footprints. Every supply chain step is carefully monitored and improved to make a massive difference in the global supply chain. What are the benefits of green supply chain management?
Green logistics is the new age revolution in the logistics industry that enables businesses involved in logistics to switch to environmentally friendly practices. It aims to retain customer satisfaction and, at the same time, save the environment. Logistic activities, including raw material supply, manufacturing, procurement of finished goods, inventory management and distribution to retailers, produce immense carbon footprints. The IMO initiated green logistics to reduce the ecological impact of the logistics industry. It helps businesses strategise to coin sustainable material handling, distribution and waste management practices. What are the innovations in green logistics?
These innovations in green logistics are driving the logistics industry and the supply chain towards a better business. LOTUS Containers is a prominent shipping container service provider specialising in new and used shipping containers. We offer all types of shipping containers to fulfil the demands of the global supply chain. A letter of credit in the shipping industry serves the purpose of securing legal transactions between the importer and exporter in the cases of international shipping. Since cross-border trade is a prominent way to boost the national economy, it must be secured in all forms. Therefore, both the importer and the exporter, along with a third party, the letter issuing bank, come into a contract that minimises losses caused due to fraud from any of the parties involved. Let us learn more about the documentary credits issued by the bank.
What is a letter of credit in shipping? The dynamic manufacturing and distribution of goods to fulfil consumer demands help maintain a proper flow of the global supply chain. The trade industry flourishes through importing and exporting goods internationally and transcontinentally. Countries actively conduct trade businesses to enhance trade relations with other countries and boost their national economy. The shipper and buyer of the goods contract with each other for secure and legal shipping of goods to their destination. To avoid the risks of fraud at the last moment, a letter of credit is signed to ensure that the supplier does not come across any issues in receiving the payment upon the delivery of goods. A legal, financial contract signed between the bank, the supplier, and the buyer guarantees the supplier will receive the agreed payment on time. Who is involved in the letter of credit? The letter of credit is the buyer's contractual commitment to ensure that the supplier receives his payment once the consignment gets delivered. For this,
Types of Letters of Credit
Use of letter of credit
The various types of letter of credit help in offering flexibility, reliability, and credibility to buyers and suppliers in carrying out international trade. LOTUS Containers is a leading seller and leaser of different types of shipping containers. We offer both new and used shipping containers in various sizes to suit the cargo requirements. Covid-19 has posed enormous challenges for the shipping industry wherein ‘unprecedented’ will be overused for the disruptions caused by supply chains globally. Every category, whether equipment, manufacturers, suppliers, or distributors, has different aspects of logistics impacted differently. The supply chain disruptions were caused by shocks related to the pandemic that led to the turmoil that affected the company’s growth and revenue. Due to the disrupted supply chain activities worldwide, many distributors and suppliers have found it difficult to replenish inventory, along with challenges in sending or receiving goods from international borders. The impact of covid-19 on supply chains has arisen due to the government's lockdown measures and other critical health-related strategies to prevent the spread of coronavirus. Political instability and trade war were prominent factors restricting the seamless flow of goods. The global pandemic had impacted the shipping industry in which an increase in demand, labor shortages, and logistics deadlocks had a massive impact on the supply chains. Global Trade and Shipping Challenges As a result of covid-19, international trade slowed down due to travel restrictions. The International Trade Center (ITC) enacted measures to regulate the trade of vital medical supplies. With the emergence of the third and fourth waves, changes had critical implications for global supply chain trade. Air Freight Freight is the utmost risk when goods are supposed to be sent across the globe. High air travel restrictions caused disruptions to air freight, and due to this, the delayed supply chain took place. There was a slower recovery for the airline industry in the previous situation, depending on the magnitude of the pandemic situation. Sea Freight Concerning the impact of Covid-19 on supply chains, shipping lanes were increasingly clogged due to more customer demands. Lower availability of labor at ports to unload or load shipping containers at cargo leads to skyrocketing prices of freight. Further, a critical shortage of cargo containers due to the pandemic had downsized shipping capacity, impacting freight operations. Due to trade agreements and regulations, allocating space and timely dispatching of goods remained a core problem for global trade. Covid-19 Creating a Logistic Deadlock Since Covid-19 was the reason for several intra-national lockdowns and border controls, limited transportation to some regions created impediments to global supply chains. Logistics is all about payment terms, quality, and cargo capacity that become key obstacles for operating overseas. Considering the impact of Covid-19 on the supply chain, growing inflation and demand had impacted freight charges, creating a logistic deadlock. The global logistic disruptions would continue to grow since delayed shipping is the major challenge. Labor Shortages Straining Supply Another critical factor for the impact of Covid-19 on the supply chain was the shortage of staff when demand surged. Shortage of labor worsened factory operations as it reduced production capacity. Many logistics companies found it difficult to hire people due to the ongoing risk of Covid. Also, massively increased orders lead to rushing and overlapping work that negatively impacts deliveries. Moreover, third-party logistics were outsourcing networks to cut costs and improve operational efficiency. Beyond Covid: Strategies to Mitigate Effects Disruptions brought up by the pandemic drastically impact the supply chain industry. Adopting sustainable and secured solutions can overcome the damage being caused. Supply Chain Transparency and Resilience: Supply chain resilience is an essential factor when it comes to dealing with an uncertain situation. The impact of Covid-19 on the supply chain is severe but advanced capabilities by driving agility can be helpful for businesses to maintain transparency. Smart Logistics by Reimaging Strategic Architecture: Revolutionizing the supply chain operating model through adopting a digital supply chain is what businesses can do to mitigate the effects of a pandemic. Ensuring smart logistics with cutting-edge technologies will develop a sustainable supply chain ecosystem. The pandemic has caused vulnerability to global economies, in the shipping industry is worst. With high government regulations, industrial and transport activities would continue to suffer. The impact of Covid-19 on the supply chain is severe, but the supply chain industry’s efforts for strategic supply chain management can make a difference. |
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