Sunday, December 01, 2013

The many cultures of shipping and happy holidays

Having a group of companies shipping cargo to Hawaii, Guam and worldwide involves people from many cultures. This may seem like a statement of fact, but when you think of DGX (Dependable Global Express), DAX (Dependable AirCargo Express) or DHX - Dependable Hawaiian Express, do you think of many different people, in all different shapes and sizes, with differing personal attitudes? We hope not!

What we hope to convey is the quality services we provide, no matter who you speak with, and how that manner of conducting business is consistently how we approach our business globally.

It isn’t easy to manage differences. The holidays are a cultural “mixed bag,” because different people within cultures, in different areas of the world, may or may not believe in Thanksgiving, Hanukkah or Christmas. What is important is the spirit of kindness and warmth and caring the time of the year brings. I am one individual who wishes all business were conducted with the same spirit all year long — what a better world we’d have! How less stressful would your daily duties/responsibilities be?

This year, we will be sending out ecards — digital Holiday greeting cards — to remind our customers and vendors how focused we are on the environment and the future. Most importantly, we remind those we care about of the true spirit of the Holidays, and hope they catch the spirit and enjoy the season. Happy Holidays to all of you!

As always, thank you for your business during the past year - we appreciate it! Ho Ho Ho!

Friday, November 22, 2013

Adopt-A-Highway

If you live in the USA, you could be driving down the road and see that sign that states “Adopt -A-Highway.” Haven't you wondered how you do this, what it takes, what civic responsibilities you have to perform when you adopt?  Having just lived through this experience, we feel great about it and want to share our experience!

Our “Highway” adoption was coordinated by “Adopt-A-Highway” and recommended by the Long Beach Chamber of Commerce - both a pleasure to work with. The street we adopted gets cleaned once a month.

We have adopted a very busy section of Pacific Coast Highway in a very popular/populated area.  We feel a sense of ownership and civic pride. Just like the wonderful feeling my wife and I have had adopting plenty of pets over the years. You may know that Long Beach is a great port city, the center of a whirlwind of ocean shipping and freight forwarding companies. It’s where we live and work. Hundreds of millions have been invested in renovating the downtown area of Long Beach.  It is clean, beautiful, and a wonderful place to live.

We are bubbling over and proud of the fact that one of our companies, Dependable Global Express (DGX) is doing its civic duty by "Adopting -A-Highway," in Southern California. Hopefully some of you will see our sign, and the cleaner highway ahead! Now if we can only make it through those teenage years...

Tuesday, October 22, 2013

When a frequent, informational email matters and my reaction to "What’s Not There?"

Recently, I realized that one of our past ocean carrier partners had taken my name off of their “Notifications” email address listings. This surprised me.

Normally I must unsubscribe to the email “spam” I don’t want (if the filter hasn’t caught them), the sender just doesn’t delete me. I was truly surprised, until I realized why.

The sender of these “Notifications” emails is an ocean carrier that has vessels with an average age of somewhere around 30 years old.

In the shipping industry, that’s old. As vessels age, similar to an automobile, they start developing mechanical issues, and sailing schedules become harder to maintain, due to “mechanical” problems. Schedule delays mean shipping delays and problems.

Because of the delays in their service, and our policy of offering a “Best in Class” service, we at DHX-Dependable Hawaiian Express no longer use them and have switched to a competitor. What’s worse, in my opinion, is that their competitive disadvantage will continue – there is no end to the issue in sight for them; they don’t have the funds to replace the vessels.

Occasionally, in sales calls our sales professionals will say “We use xxxx, because Brand Y has unreliable, older vessels and we promise the best quality of service. Best in Class is a mission for us.” Apparently, this information got back to Brand Y, and their reaction was to remove me from their email listing.

Funny thing is, others in our company forwarded their last message to me, because they were surprised by the message content.

Where in the past “Brand Y” had always given an explanation as to why a vessel is late, now they do not. A lack of information is not good in the shipping business, particularly when you are a Customer trying to ascertain your supply chain weaknesses and risks. The last notification just stated “the vessel will be late” and discussed how it impacted their transfer cargo at destination. We wonder why there's no explanation.

We use the promotion line “Dependable from Start to Finish”, and we at DHX-Dependable Hawaiian Express, DGX and DAX are here to help. Visit us. Call on us. Depend on us. We’re the supply chain partner you can Depend on!

My advice to you: Caveat Emptor.

Tuesday, October 01, 2013

Want answers to your shipping questions?

  • Odd sizes?
  • Proper dimensions and weight?
  • Pallets
  • Shrink wrap?
  • Handicapping the freight forwarder; the space is already occupied.
When you are shipping less than containerload ocean or air  cargo to any destination, ensure the Freight Forwarder you are using has the proper dimensions and weight. This is extremely important as your charges will be based on one of those items or a combination of them. It's always good to consider  the following:
  1. If your freight is initially shipped on pallets, will it be stripped off of the pallet when loaded into a container or put into an airplane? If your response is yes, then do not include the pallet  weight or dimensions in your totals for ocean or air freight charges purposes.

  2. If your freight is shrink wrapped with a sign that states “Do not break shrink wrap” then include the pallet weight and measurements in your calculations.

  3. If your ocean freight weighs over a certain amount per cubic foot (Hawaii and Guam cargo) or meter (International freight), then you may get charged with a “density charge” because the freight is disproportionately heavy, and it may mean the freight company cannot completely fill a container because it then would be too heavy to transport legally. Similarly, if the freight is odd sized or longer than a certain length you may be charged an extra charge for the Forwarder having to take extra time to block in the pieces or load around them.

  4. Remember that on odd sized pieces that you take the highest, widest and longest point to determine your overall measurement. So, if something in your shipment juts out past the edge of a pallet, even if only in one spot, you will be charged as if the entire shipment juts out over the pallet. The argument for this practice is that that space is lost in the container, because the Forwarder cannot load anything with a flat surface up against it because the space is already occupied.

  5. For airfreight, whether Hawaii or Guam or International cargo, there are also dimensional calculations based on the density of the freight. However, the end result is the opposite of the ocean shipment. For airfreight, similar calculations take place, but you are charged for dimensional weight used for the lighter freight, not the heavier freight. The reason for this is that there is limited space in an aircraft, and, unlike ocean freight, where charges are based on cubic feet (Hawaii and Guam ) or cubic meters (International), airfreight charges are based on weight.

  6. More information on the whys? With the limited space in an airplane, as well as its ability to put only so much freight weight-wise into the plane, if the plane was only filled with light freight then the total revenue charged by the airline would be less than they theoretically could charge with a mix of light and heavier freight. Thus, the calculation computes a dimensional weight, and you may be charged additional weight for your shipment if too light.
If you need more information, in the FAQ or Conversion chart sections of our websites — DHX - Dependable Hawaiian Express, DGX - Dependable Global Express, and DAX - Dependable AirCargo Express — there is a more complete explanation and examples of the computations.

Friday, July 12, 2013

Horizon Lines Makes Plans Diesel Engine Conversion

On June 25, 2013 – Horizon Lines, Inc. (“Horizon”) announced that it plans to convert the power plants on two of its steam turbine cargo vessels to modern diesel engines capable of burning conventional liquid fuels or liquefied natural gas (LNG). One of these vessels is supposedly going to be used in the Hawaii Ocean Freight Trade Lane.

Can we say congratulations? First let’s see if we understand correctly. Horizon Lines, which have some of the oldest Jones Act vessels still seaworthy but barely under 40 years of age, announced plans to reconfigure 2 of these older ships into vessels containing “modern diesel engines”.

Our question is how are they going to pay for them? Horizon has recently undergone an arrangement for the benefit of creditors, and are paying an interest rate of between 13% and 15% on their current debt load, if we’re reading this correctly on their current Form 10-K filed with the Securities and Exchange Commission. (If we read it wrong, we apologize, but it is a lengthy and verbose document that appears to have been designed to put the reader asleep.)

Horizon doesn’t have much operating profit, and now that Matson Navigation Company, who has newer and more fuel efficient vessels, has reduced their fuel surcharges four percentage points in the last three months, that little financial “windfall” will disappear, impacting Horizon’s profit outlook in a negative way.

All we want to know is how they are going to pay for it, and how they'll be able to keep the rest of their old fleet operating as the fleet ages.

The key question to ask is “Are they looking for a White Knight?” Someone willing to inject a billion dollars into them for new equipment? Or is there someone with newer, better equipment waiting to step in someone with more than two Ro Ro (roll on, roll off) vessels. Someone who may have a barge system already available and in place?

Tuesday, April 30, 2013

Shipping to Central and South America

When DGX (Dependable Global Express) got into the Central and South America ocean freight business in 2009, we were really surprised by the competitive landscape. There were literally hundreds of Freight Forwarders, thousands maybe, all doing the same basic thing – shipping your LCL (Less-than-ContainerLoad) product into Miami and then moving it from Miami down to the applicable port/country.

We started planning, looking around, and then realized that maybe we were looking at the markets the wrong way. The alternative, as presented to us, was that we should be shipping ocean freight off the West Coast into the West Coast of Central and South America – and using Panama as “our Miami” for East Coast Latin America destined shipments.

We wish we could claim this as our idea, but we cannot. Another freight company used to do this but unfortunately unsuccessfully after a good ten year run, for a multitude of reasons.

The two men that had operated that company, and were in the process of winding it down, came to speak with us. Their ideas made sense, and DGX/DAX/DHX – Dependable Hawaiian Express has always believed in experimentation to grow our business. So, after mulling it over, we decided to offer the two principals positions at our company setting up and starting a Latin America division.

How has it worked out? Fabulously! We are unique – others may offer one destination off the West Coast to a port somewhere in Latin America, but nobody does it like we do. We have a very unique product in the way that we ship to Latin America – we ship West Coast (Southern California) USA to West Coast Latin America for multiple destinations. We do it for all LCL and FCL (Full Container Load) business.

Our shipping advantages, based on our West Coast service, includes:
  • We have an all water service – West Coast to West Coast – this means much less handling of the product, and probably less claims than ocean shipping through Miami
  • We have better frequency in sailings
  • We have much better transit times than the option via Miami
  • Coupling the above two items with less handling involved than trucking to Miami, and you have much lower costs because the trucking and rehandling to Miami is eliminated, as well as superior routing

Even those manufacturing in Mexico are finding it easier to ship their product to Los Angeles and move their ocean freight off the West Coast. Simpler, cleaner, less expensive.

Our streamlined shipping process should be enough without even discussing the additional fine qualities DGX brings into the mix in shipping to Central and South America: the Dependable Companies have been in business for 60+ years, DGX is ISO 9008-2001 Certified, and a member of CT-PAT and Smartway. Our culture is one of quality and integrity. Check our website for sailing schedules. We cover eight different destinations directly, plus a host of others via Panama.

We are Dependable. From Start to Finish.

Sunday, April 28, 2013

Customer Communications is as Important as Moving Freight

Most companies have business models and strategies these days. There are different avenues a company can take insofar as pricing, the quality of the product or service they offer, how they position themselves in the marketplace for their industry, etc. Here at DHX – Dependable Hawaiian Express, we have always believed that communicating with our Customers is as important as moving freight. We want to make our Customer’s logistics challenges and product transportation simple- which is why our business purpose has been defined as “To make shipping and logistics EASY for our Customers, while solving any challenges.”

To do this, we have defined the parameters within which we offer value to our shipping Customers. We believe that there is a combination of shipping service levels to Hawaii and Guam plus rates which will equal the best value for each individual Customer. That’s what we sell to our Customers - that combination of our premium quality service plus competitive rates which equals their best value.

How do we do this? First we listen. That may sound like a cliché, but we have more “boots on the ground” constantly visiting and communicating with our Customers. We also realize that we have in excess of 50 different points of contact with our Customers – every point being a unique experience for the shipper, consignee or third party involved. At each point, our goal is simple – to ensure the Customer leaves that point of contact believing they are dealing with an outstanding company who has their act together, and is professional, knowledgeable, efficient and effective.

The second thing we do is establish multiple methods of communications with our Customers. Whether it’s communicating through EDI, email, fax, via our website by Live Chat, Newsflashes, or “What’s New” Letters, all ears are open constantly, consistently saying “We’re here, we’re listening – how can we help?” You now have 24/7 access to rate quoting for Less-than-Container Load (LCL) shipments through “Quick Quote” on our website because you asked for a quick way to receive a quote on your LCL shipments, even after normal business hours. Communication is one of our key strengths and has evolved into a major focal point for everyone in our company.

Communications is a major product service feature for our shipping and logistics business. Another service value is operational excellence. Communications is great, but if your shipment gets to its destination but not on time, we have failed in providing a key value we hold dearly for Customers.

How do we ensure success? One facet: internal communications. Owning our own trucking operations in the major port cities in both Hawaii and Guam, allows us to obtain what we need to analyze our loading ability and any issues which may arise with your shipment. We receive constant feedback from destination locations and analyze this with photos taken both at origin and destination, video cameras that line our docks at our origins, and meetings to discuss any potential problems.

We focus on eliminating damages. Knowing part of our value offering is based on moving shipments as damage free as possible – it makes shipping to either Hawaii or Guam easier for everyone involved. Because of the longer transport times to Hawaii and Guam, this is critical. We believe operational excellence is also a core competency that has helped us establish a reputation over the years that is unparalleled in the freight forwarding industry to Hawaii and Guam. We make shipping easy!

So, ask yourself – what’s your value proposition? If you know it, and you’re not a Customer, call us. We’ll listen and try to match up. We call it a win/win. So will you.

One Company for All Your Hawaii/Guam Shipping Needs

When shipping freight to Hawaii and/or Guam, as a business owner or professional you always think about the long term repercussions of who you select as your shipping company. Your considerations should include asking certain questions, depending on your needs as a company and you as an individual.

Questions like:
  • Do you want a partner who cares about your business, or do you want a vendor? 
  • Do you want a company that services all three West Coast ports to Hawaii and Guam, or could you/would you want to use two service providers depending on what port the shipping service provider does service? 
  • Would you like a company that offers both ocean and airfreight shipping and logistical services in case you're in a pinch and need something rushed? 
  • How about a company that controls the quality of its service by owning the delivery service in all major ports in Hawaii and Guam, to ensure the quality of its service?  
  • What other items do you think you should look for? 
  • How about an ISO Certification, which gives you assurance that when shipping your cargo to either Hawaii or Guam, you can be certain that specific International Quality standards will be met? 
  • Speaking of International shipping, shouldn't your shipping company have the ability to ship from any point in the world to Hawaii or Guam? 
  • If that's not important, then is shipping eastbound from Hawaii, intra-island within Hawaii or moving your freight/shipment to Guam from Hawaii important? If you have a social conscience, what "green" actions has the freight company you deal with participated in? 
  • Do they regularly participate in charitable giving within your business community?
Lastly, on a personal note, how much time do you want to spend "babysitting" a freight forwarder? Can you book a pickup or arrange a shipment on line? Does the freight forwarder have inexpensive overland rates with great service? Can you track and trace your shipment from its inception through delivery on line?

Can you obtain a Shipping Rate Quote for Hawaii and Guam on line? In what time span? Does that forwarders website look professional; in case your Boss (if you're not an entrepreneur) wants to take a look?

There's only one company that does all the above. Guess who?