For many importers who source from Asia, the Trans-Pacific FCL market remains unstable leading into peak season now that 7%-8% of capacity was recently removed due to the Hanjin bankruptcy situation. This has caused disruption in many supply chains and some have come to a screeching halt.
JAS has taken a proactive approach to mitigating this situation and addressing customer needs by establishing the first weekly LCL consolidation box from Qingdao to Memphis starting October 4th.
This is a very unique product offered in the marketplace and will address some of the current pain points in today’s market amongst importers throughout the region.
Northern China sourcing region is primarily concentrated on the industrial and manufacturing sector. The co-loaders charge a premium for dense cargo either by inflating their per ton charges to double the standard market price or by applying additional charges on the IPI portion of the move by utilizing a much more expensive w/m ratio.
After doing the analysis, JAS found that its customers will be able to average an immediate 50% cost savings vs. the co-load market since JAS is able to apply the standard w/m ratio all the way through to the JAS Forwarding bonded facility in Memphis.
The total transit time from Qingdao to Memphis is 25 days. From Memphis, JAS can deliver to any customer in 20+ different states in the US within 1-3 days from arrival.
JAS' customers will also continue to benefit from the safety and security of having the goods move through the JAS network in JAS operated facilities. If you are an importer who sources from any region in Northern China and would like to hear more, please reach out to the email@example.com or contact your local sales representative.
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.
If you ask most business leaders in the world what their most important resource is, many will tell you it’s their people. At JAS, our culture is no different from our company motto, “People Make the Difference”. Given that people are the number one resource in business, the number two resource should be their time; an important factor that often goes overlooked. Driving value in today’s Trans-Pacific supply chain market for logistic service providers can be challenging. No longer do logistics and supply chain managers make decisions in a vacuum. Most organizations make collective decisions when it comes to their supply chain since it involves finance, purchasing, customer service, production, etc. This process can take a lot of time given that these decisions affect every aspect of the company.
Market information is readily available in the form of social media, blogs, newsletters, and industry websites. However, there is typically some level of bias associated with such mediums based upon the sources of the data. This is a reality in any industry. Given the market volatility, supply chain decision makers are tasked to take in all available information then work with other affected company departments to predict the future. By identifying this complex customer need, JAS was driven to provide a solution. We began by compiling data from our global operating system then designing a Business Intelligence Platform to highlight customer trends and proactively identify improvement opportunities. JAS now provides their clients with a business intelligence tool that replaces perception-based decision making with unbiased data analytics to help strengthen supply chains and identify trends. Due to the overwhelmingly positive feedback from our customers, we decided to take this initiative a step further and use our “JAS Business Intelligence Tool” during the discovery stage with potential clients prior to a formal partnership agreement. We first gather historical data from the client as well as other industry platforms such as Datamyne, Zepol and Import Genius. Next, we upload the data into our tool and set up a series of views for an in depth analysis. Performing this exercise allows JAS to better understand the customer’s supply chain model and help clients identify improvement opportunities early in the relationship. Any additional details uncovered during the supply chain assessment are quickly adjusted to provide a more detailed view of the results.
The JAS Business Intelligence Tool translates data into a language that can be understood by all respective departments within an organization at the highest level without having to be a supply chain expert. It also allows for more educated, collective decision making to give customers peace of mind knowing that, although they cannot predict the future, they are more prepared to handle the future with JAS as their partner.
Alejandro Quintero, Sales Manager for JAS Colombia, joined JAS in May 2016 and is quoted as saying "I feel and see that JAS is working on innovation and investment around sales, services, and operations as the main pillars to reach the expected excellency and growth."
Alejandro, please share with us how would you rate 2016 for JAS Colombia?
I believe 2016 is one of JAS Colombia's best moments in history. We are investing and aiming to have quick and sustainable growth in order to become market leaders in the next four to five years.
Although the Colombian market is getting more complicated due to the increased quantity of local cargo agencies, the market is still full of business opportunities. Bogota, Medellin, Cali, Pereira, and Barranquilla have more than 56 thousand companies with foreign trade activity. JAS Colombia is working on a model that can cover most of that market.
Alejandro, what would be the key to success in order to grow in a market like Colombia?
The key to success is very simple; we must have the best in class service accompanied by smooth operation and fair rates. With that said, our human resources play a leading role. Our foundations need to be strong through motivation, knowledge, experience, commitment, and discipline
Everything we do can be measured, only if measured it can be controlled, only if controlled can be directed and only if directed improved
Alejandro, what are the next challenges for JAS Colombia?
We have many challenges, one of those is to position JAS Colombia among the best in the market, but I'm absolutely sure we have the best team to do so. If you meet the years of experience of team operations, sales, back up office and managers, we have more than 250 years, which is why we help transform knowledge into support to address current and new challenges.
Another challenge is the role of those who negotiate our costs to become more competitive at market level. The region is working on trading block level Latin America with the objective of obtaining the best negotiations in order to help close more business and be as profitable as possible. We are also investing in local procurement to strengthen our relationship with our suppliers and work well in a win-win (situation) that benefits our customers.
On September 5, 2016 JAS Colombia moved its Headquarters to a new location in one of the most exclusive neighborhoods of Bogota called “El Chico”.
The brand new office can now allocate over 25 people in its 170 m2 (compared to the 108 m2 of the previous location). Congratulations to the JAS Colombia Team for taking this very important step and for preparing their future for continued growth and prosperity.
JAS Automotive is a proud sponsor of the Boys and Girls Club of Southeastern Michigan. This highly anticipated and exclusive event, which has raised over $7M to date, draws the best and the brightest among leading automotive industry executives.
The JAS Automotive team was selected as the only International Logistics provider to sponsor the event as well as participate in the Planning Committee.
In line with the JAS Automotive strategy, this event brings customers and providers together in partnership and philanthropy. Working with partners in a joint effort to support children builds a bond that carries through the professional relationship. The JAS Automotive Team prides itself on its reputation and customer relationships. The team’s unique approach to customer engagement and retention is a combination of our commitment to our customer and our hands on direct approach. With 24/7 coverage and regular In-Person site visits, the JAS Automotive Team is in tune to the needs of our customers and partners.
JAS Automotive offers a suite of services including:
On August 15th, JAS Worldwide formally announced the creation of the Americas Region, which incorporates Canada, USA, Mexico, and all Latin American countries.
The regional office, located in Atlanta, GA, is directed by newly appointed Executive Vice President of The Americas Region, Mr. Adrian Emmenegger. Adrian led JAS USA as President & CEO the past seven years, taking the subsidiary to new levels of volume, revenue and profitability.
As Adrian assumes his new position, Mr. Eugenio Fumo undertakes his new role as President & CEO of JAS USA. Eugenio spent the last 21 years working with JAS USA in several key capacities - most recently as its COO - and has been a very important component to the company growth and financial success.
In a statement about the recent transition, Adrian commented, “It has been my sincerest pleasure to be your President for the past seven years and I am extremely proud of what we have achieved together during that time. I am very happy to have Eugenio in this role and look forward to see JAS USA continue on its path to even greater success. Eugenio is taking over a healthy company with a strong team at all levels and most importantly a great group of motivated People to make a difference every day! Thank you in advance for your continuous support and efforts to keep our clients happy with what we do for them.”
In addition to the Global Forwarding Air and Ocean Services, the JAS Worldwide Americas Region is very well positioned to accommodate customers with enhanced services between Canada, USA, Mexico and Latin America. Stay tuned for future e-communications updates in the JAS Currents Newsletter and www.jas.com. Thank you for supporting the JAS Americas Region and all of the Global Subsidiaries.
The JAS Projects - Oil & Gas (JAS PO&G) scope of work on this large project was to arrange pre-carriage from the FCA( Free Carrier) Supplier in Italy, arrange full charters to Port Antwerp, and then receive cargo under hook up to the final job site.
This project consisted of several large modules. A few of the largest ones were L31 m x W6.3m x H 6.7m and GWT 170 Metric Tons. To ensure smooth planning and execution of the project, JAS PO&G flew our Project Manager and Transportation Engineer in for a pre-operations meeting and inspection of the freight. JAS PO&G Houston performed a detailed route study to determine the most feasible route, identifying civil work, route improvement, height barriers and permit requirements. JAS PO&G Houston pre-planned and closely coordinated with the Department of Transportation and utility/electrical companies to remove all the barriers and obstructions, in order to expedite permits within a reasonable time frame to meet the project delivery deadline.
All oversized cargo was self-unloaded on stands at Port Chioggia, for safe handling of the cargo and to avoid the high costs of hiring a crane. The JAS client's requirement was to stow all cargo under deck, considering the dimensions and height of the cargo JAS PO&G Houston narrowed down their choice to three carriers who would have suitable ships to accommodate all of this freight under deck. JAS PO&G Houston obtained specifcations of the ship and prepared detailed stowage plans along with the lifting, securing and lashing drawings on the nominated vessel. Our team, including the Transportation Engineer, Project Manager, and Surveyor were in attendance to supervise the loading, securing and lashing operation to ensure it met all safety standards both at the origin and discharge point in Antwerp.
JAS Panama was born in 2011 with four employees seated in a small office in downtown Panama City.
Now, four years of spectacular growth later (and after moving in 2012 to a much bigger office in a strategic location five minutes from the Tocumen Airport - Parque Logistico Sur), JAS Panama is a structure of 20+ employees.
At the beginning of 2016, under the leadership of Managing Director, Angelo Simpson, the company had decided to invest in enlarging and re-modeling the office that went from 170 m2 to 245m. This gave JAS Panama the chance to keep on growing in people and business for several years to come.
The new office looks fantastic! Congratulations JAS Panama!
2016 marks the beginning of the new Supply Chain Solutions (SCS) product at JAS. A combined initiative between JAS Worldwide and JAS USA, JAS now offers consulting services focused on efficiency and agility with regards to order management, workflow efficiency, transportation flow, order to cash flow, and inventory management. Holly Qualman, newly appointed Corporate Director of Business Development, leads JAS SCS’ efforts through a core competency that is focused on helping customers leverage best practices in organizational, process, and technology methods within their unique supply chain. This allows analyzation of current procedures in order to propose solutions to enhance the overall performance and effectiveness of their value chain, and works as a means to improve the management of fluctuating costs in the current economic environment. Working in close collaboration with JAS customers drives a shared interest in successful results.
JAS SCS specifically targets performance improvements in JAS customers’ supply chains and promotes continuous improvement efficiencies in areas such as order flows, information flows, and inventory flows. Solutions are designed collaboratively with experts from the product and service teams, Sales, IT, Customer Solutions, and Business Process Management. This combination of contributing expertise yields realistic results that considers customer satisfaction, cost, and feasibility.
JAS SCS examines ways to improve current flow models to leverage a greater degree of automation, improve visibility and communication, and reduce processing time. SCS may also analyze current transportation procedures in relation to demand and inventory requirements to offer solutions to increase speed to market, reduce costs, improve visibility, and minimize waste. The goal in developing these solutions is for SCS to work in close collaboration with JAS clients to help them get the most out of their supply chain.
The key to success is in defining the project objective, selecting an analytical approach, designing and following a structured process and timeline, and assembling the right group of people to provide the appropriate inputs.
Program recommendations may include but are not limited to:
To maintain a high level of standards, JAS Brazil has started a training seminar series for the Inside Sales Department about “Excellence on Telephone Sales." This session has taken place at the São Paulo branch and has involved all of the Inside Sales Department. This training is important in order to develop the technique for this team and to help the sales team improve their level of success in sales.
"The training in sales by phone was very productive for covering different types of approaches, targeting needs, characteristics and benefits for the same. In this way, a good approach consequently will give the customer the confidence about our understanding and our ability to add value in their operations. "- Gabriela Maciel, Inside Sales at JAS Campinas.
Pamela Ribeiro, Inside Sales from JAS São Paulo said: “Since I came from operations and sales support, I didn’t have a commercial contact with customers before, so this training came on a great moment. After that I certainly felt much more secure (in my abilities) to develop the business within the company.”
This exchange of knowledge is also a new way JAS Brazil has found to conquer the fidelity of customers.
JAS São Paulo Branch Manager, Sergio Gervasi, has delivered a training session for the main client, a multinational company shipping electronics goods.
Since this customer had many shipments of Lithium batteries refused by the air company due to their challenges on the packing and labeling, Sergio Gervasi and Bianca Xavier (Customer Service dedicated to this account) prepared a presentation about “Dangerous material focused on Lithium Batteries".
All of this material was coordinated with the LATAM Logistic Manager from the customer and presented not only for her team but also to the commercial, engineering, and warehouse teams. To make sure everyone was aware of the importance of the issue, a video with air disaster caused by Lithium Batteries has been shown.
JAS Brazil also had training given by the Santos Branch Manager, Wagner Guardia, and the Sales Executive from Campinas, Fabio Bonato. They prepared a presentation about all of the steps on the Ocean Import process: since the shipping instruction until the delivery on Santos terminal. After discussing many questions, it additionally clarified questions about the VGM rules, which took effect in July and are still causing many doubts.
Stretching almost 2,000 miles, the border between Mexico and the United States is the most frequently crossed and controlled international boundary in the world. The world’s busiest border is also responsible for over 238 billion dollars in trade. In 2016, JAS Forwarding has taken the initiative to develop a Trade Lane specifically focused on fostering the partnership and collaboration between JAS USA and JAS Mexico.
Reuben Botello heads the JAS Forwarding Border-Link initiative as our Border Development Trade Lane Director. To further strengthen the JAS Forwarding existing operations in San Diego and El Paso, JAS added full operations to McAllen, TX, headed by Mario Degollado. Next, JAS added the North America International Pricing Manager, Antonio Pastrana, based in JAS Laredo, TX Sales and Pricing Office. Since Laredo is one of the primary hubs for overland transportation activity between the USA and Mexico, JAS can better foster strategic relationships with trucking partners on both sides of the border. This has made an immediate impact for JAS Forwarding in the market place.
In an example of JAS' recent success through the Laredo corridor, the Border-Link team assisted Brandon Miller, Branch Manager of JAS Charleston, in moving 10 trailers and flatbeds from upstate New York to San Luis Potosi, Mexico. JAS was able to provide the right price, allocation of equipment, and end to end visibility via Web-Tracker. This collaborative effort resulted in a satisfied customer and tied in directly to JAS' cross border strengths. That is what JAS strives for: a win/win situation for JAS customers and the company.
The bilingual and bicultural staff at each of the four offices (El Paso, Laredo, McAllen and San Diego) enables JAS to act as an experienced liaison for customers. The team provides a single, seamless point of contact to facilitate management of cross border operations. Now with a strategic presence in all major inland ports along the Southern border of the United States, JAS has positioned itself not just to participate in this important part of JAS customer’s supply chains, but to be an innovator in the marketplace.
JAS looks forward to the opportunity to prove why it is the best option in Border-Link services!
For further information, please contact JAS!
We are delighted to introduce our new Executive Vice President of JAS Asia Pacific, Tomas Sonntag, who came on board July 4, 2016.
Tomas has a very long and established career in the logistics industry, particularly with Schenker where he held several progressive positions, spanning over three continents in the period of 20 years. Having lived in Asia since 1992, Tomas is no stranger to this part of the world. Tomas comes to us most recently from Logwin, where he was the Regional Managing Director and a member of the Board. A well-seasoned veteran in the world of transportation with a specialist focus in air freight, Tomas brings his wealth of international experience to JAS. With his high level of drive and enthusiasm, Tomas will set a clear and focused direction for the team in Asia Pacific and will play a pivotal role to maximize the performance of the team.
Tomas has relocated from Hong Kong with his wife Sabrina to the island city of Singapore. We look forward to Tomas’ strategic stewardship and rendering him the utmost support as we work together to achieve new heights of success for JAS in the Asia Pacific region.
JAS Projects Oil & Gas is proud to be an exhibitor at Breakbulk Americas in Houston, TX from September 26-29, 2016.
Breakbulk Americas is an annual exhibition and largest of its kind in North America. It brings top tier shippers together with breakbulk and project cargo service providers. This exhibition is the venue to connect with executives from leading EPCs and other large-scale shippers who are moving cargoes globally. JAS will be in attendance with our global projects – Oil & Gas Team, inclusive of our CEO, Marco Rebuffi. This four day event is being partially sponsored by JAS Projects Oil & Gas via our booth participation. Breakbulk Americas 2016 will showcase a wide range of products and services related to logistics & transportation sectors from the leading exhibitors. Exhibitor profile of this event includes specialized ocean carriers, freight forwarders, ports/terminals, logistics providers, road, rail, barge and air transportation, export packers, and equipment companies.
Come by our booth, number 605, and let us introduce you to our new alliance partners, Necotrans, that bring expertise to West Africa!
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.