JAS IN ASIA PACIFIC
News From JAS Worldwide - Asia Pacific Focus
JAS APAC HQ
223 Mountbatten Road
Prada Japan nominated JAS Japan to handle the shipping of materials required for the renovation of the external facade of their shop in Ala Moana Center Shopping Mall in Hawaii, USA.
The commodities of the shipment were large marble slabs, windows and fittings whose sizes are considered out of gauge. Unfortunately, there are no carriers in Japan that could offer Open Top containers or RO/RO service from Japan to Honolulu, and this shipment was urgently needed in Hawaii. Despite these challenges, JAS Japan managed to come out with an ideal solution where the shipment not only will arrive in a timely manner, but also came with an affordable price tag.
First, JAS Japan engaged experts to look at each of the items and found that it was possible to fit all the items into normal covered containers with some careful planning. In addition, to ensure all the items were well protected throughout the journey, JAS Japan custom-made some of the crates where the tallest fittings fit perfectly into the containers. During the filling of the containers, Senior Logistics Manager of Prada Japan visited our DC and witnessed the entire operation. He was very impressed with JAS' professionalism and the care that the staff gave in handling these items.
Eventually, all of the items were packaged into two 40’High Cube containers which were shipped out in time to Honolulu for the re-opening of the shop.
For the past several years, the Trans-Pacific shipping market has been one of the most unpredictable in the world. Over the years, we have seen strikes, natural disasters, mergers, new regulations, and spikes and lulls in economies, causing a very fluid market situation that changes almost weekly. The recent Hanjin bankruptcy is the latest in a series of unfortunate events that has caused the market to stand on its head.
During this time period, we have seen a shift in the landscape of relationships among freight forwarders and carriers through several mergers, buyouts, and alliance shifts, in order to grow market share in one of the most competitive markets in the world.
Instead of trying to buy market share, JAS has taken a customer-centric approach to develop this market and it has paid off. With the implementation of the Cargowise One (C1) platform, (beginning with the USA and China in 2014) JAS has been able to use live data to react quickly to the ever changing market conditions and increase efficiency in the process. This is mutually beneficial to both JAS and our customers.
We are taking this a step further by investing in other business intelligence and analytic tools to help customers make better decisions to improve their respective supply chains. The Trans-Pacific market is highly competitive and transparent in terms of shipping rates. Customers are looking to find other ways to reduce cost and compete through creating consolidations, maintaining visibility, forecasting and steering.
So far in 2016, JAS has added four weekly LCL consolidations to our current Trans-Pacific offering for a total of 17 lane pairs, with the intention of adding two more before year end. These LCL consolidations cover not only the major markets (Los Angeles, Shanghai, Hong Kong, etc.) but also regions such as Keelung, Qingdao, Memphis, and Charleston.
Additionally, we have developed our air and FCL product offerings over the years by maintaining a focused approach through our elite carrier programs. By partnering with and maintaining long term support from market leading airlines and steamships that provide best in class service, we can be confident in our ability to provide our customers with a consistent level of service, even during drastic market fluctuations.
A perfect example of this is the current Hanjin financial crisis leading to bankruptcy. The JAS Ocean Services team saw this situation several months ago and began proactively steering cargo elsewhere. We still have some affected freight, given the interconnected system and global alliances between carriers, but the little disruption that did occur was manageable and easily resolved. In fact, the situation at hand puts JAS in a very unique position in the market. While others scramble and focus internally to minimize the damage caused by Hanjin, JAS is focusing on our customers and has the resources and tools available to help them maximize their supply chain and navigate through the uncertainty of the Trans-Pacific market with confidence.
China is the number one mobile device consumer in the world with over 1.2 billion mobile phone users and 370 billion tablet users, which is 19% & 32% of the global market respectively for each product.
A well-established U.S. technology customer with a global footprint and growing market share in China. Their products are aimed at servicing the mobile device industry, so they decided to partner with JAS Forwarding to further develop their growing China consumer base. Customs in entries in China can be complex and inconsistent which can cause unnecessary delays, penalties, storage charges & excessive processing fees.
This technology customer consulted with JAS Seattle & JAS Corp Trade-lane to provide a long term solution to a customs challenge in China. Their challenge was that China customs claimed their products required a CCC (China Compulsory Certificate) in order for their entry to be processed, however the CIQ rejected their application by claiming the certificate was not required based upon the specifics provided.
This grey area between the separate government agencies in China caused lengthy delays, additional cost and most importantly hurt the company’s credibility in the China market place. JAS China used their expertise in the customs market to apply for a long term binding ruling for the products in question.
Since this customer’s product is very unique in the marketplace, JAS was able to get an exception ruling to the CCC certificate for their products in question. JAS provided a detailed outline on all documents required, expected processing & delivery timeline so the customer could manage their customer expectations and get to the market faster. This solution not only saves thousands of dollars per shipment, but most importantly it will help this customer further develop the ever growing China marketplace which is a key to both companies success.
As you may be aware, amendments to the International Convention for the Safety Of Life At Sea (“SOLAS”), will go into effect globally on July 1, 2016.
The recent amendment, which was adopted by International Maritime Organization (IMO) Member States, requires that a shipper verify the gross mass (Verified Gross Mass or VGM) of a container’s cargo/contents to the underlying carrier and terminal operator. While carriers, terminals and shippers alike will be affected by the new rules, the burden will primarily rest with shippers to provide the VGM.
Without a VGM, the amendments prohibit the vessel operator from loading a packed container.
As stated, from July 1st, the weight of the container and the cargo contained therein must be documented. Estimated weights are not allowed.
There are two options permissible in determining the weight or Verified Gross Mass (VGM) of the cargo and container.
They are as follows:
Method 1: Weighing
After it has been completely packed and sealed, the container can be weighed. The weighing can be performed by the shipper or by a third party contracted by the shipper (please refer to Chapter 5.11 of the SOLAS guideline).
Any scale, weighbridge, lifting equipment or other devices used to verify the gross mass of the container must meet the applicable accuracy standards and requirements of the state in which the equipment is being used (please refer to Chapter 2.1 of the SOLAS guideline).
Method 2: Calculating
All packages and cargo items may be weighed individually (including the mass of pallets, dunnage and other packing and securing material) and must be added to the tare of the container visible on the exterior of the container (please refer to Chapter 5.1.2 of the SOLAS guideline).
The method used for weighing the container’s content is subject to the certification an approval as determined by the competent authority of the state in which the packing and sealing of the container were completed (please refer to Chapter 220.127.116.11 of the SOLAS guideline).
Any weighing equipment used to weigh the contents of the container must meet the applicable accuracy standards and requirements of the state in which the equipment is being used (please refer to Chapter 2.1 of the SOLAS guideline).
There is currently no single document uniformly determined to be acceptable to verify the weight. Rather, the information can come via a weight certificate, separate documentation, or part of the shipping instructions.The amendment states that “irrespective of its form,” the document declaring the VGM should be signed by a person duly authorized by the shipper.
For shipper loaded FCL containers, JAS Forwarding requires a VGM from the shipper. Upon request, JAS Forwarding can have the container and content weighed at an outside weigh station.
Unless JAS Forwarding arranged the weighing of the container or has a weight certificate from an independent authority, JAS Forwarding will require a VGM certification from the shipper, prior to the carrier VGM cut off. The VGM cut off will be provided by the carrier at the time of booking.
JAS Forwarding, unless otherwise notified in writing, will ensure that the VGM is communicated to the carrier by one of the following methods:
The carrier itself is not obliged to cross-check the VGM received. Independent of the party verifying and sending the VGM, it remains the responsibility of the shipper that the carrier and terminal operator receive the information in time.
Once the Ocean Carrier receives the VGM, the Shipper’s responsibilities are complete.
It is unclear yet what stance of the various Ports and Terminals will take globally. Some have announced that they will not accept containers into the terminal unless a VGM has already been submitted. Some have announced that they will accept containers but will be unable to weigh them, and others have confirmed that upon request, they will be able to weigh the container.
However, it is clear that if the VGM is not received by the VGM cut off, the container cannot be loaded on to the vessel.
As we get closer to the deadline, and industry groups coalesce into creating common forms, we will provide the documentation for the shipper’s certification.
Where can relevant documents be found? (links)
a) Official SOLAS guideline
b) Status of national legislations
c) Guidelines regarding the verified gross mass of a container carrying cargo
d) Guidelines for improving safety and implementing the SOLAS container weight verification requirements
Executive Vice President of Operations
JAS Worldwide Management Inc.