March 2013
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WELCOME MESSAGE

 

You’ve likely heard of “The Butterfly Effect”. It’s the idea that a butterfly flapping its wings in Asia eventually leads to a hurricane in the South Atlantic months later. While mostly appearing in science fiction stories about time travel, it seems more and more plausible in today’s world of increasingly complex and sophisticated supply chains.

Budget battles in Washington impact decisions regarding factory locations for years. Possible port strikes in Brazil lead to changed marketing strategies for India. Threats of cyber attacks drive capital budgets and adoption of whole new technology platforms. Volcanoes, super storms, civil unrest, regional conflict, energy development, economic crisis…global agents of cause and effect will always shape our decisions.

These circumstances both play to our strengths and present real challenges. One of EMO Trans’s core competencies has always been our ability to respond quickly to changing demands. Our decision chain is extremely short, which allows us to offer answers and options in a very quick time frame. We must challenge ourselves to stay abreast of situations that could impact our customers (and ourselves) in a manner that allows for timely informed decisions.

Because our history is built on nurturing mutually beneficial, long-term relationships, we are devoting a lot of energy and focus on how to best put our customers in a proactive position to empower their decision-making. So when the proverbial butterfly flaps its wings, it’s also triggering powerful information to help you succeed.

With best regards,
 
Olen Wood
President
EMO Trans Inc.

 


FUN FACTS ABOUT EMO TRANS BALTIMORE

- Out of seven people people on staff , three are named Mark!
- Every year, the office hosts a dozen or so customers at the Propeller Club’s annual Crab Feast – an event that attracts as many as 5,000 people.

FEATURED BRANCH: BALTIMORE

Back row, left to right:  Jen Hall, Import/Accounting Coordinator; Mark Johnson, Air Export Supervisor; Sherry Waterfield, Ocean Export Coordinator; and Mark Brndjar, Branch Manager. Front row,  left to Right: Mark Perrego, Export Coordinator; Dawn Smith, Import Manager/Customs Broker; and Dennis Barrett, Export Manager.

 

Meet EMO Trans Baltimore! Located five minutes from the bustling BWI airport, as well as just minutes from Baltimore’s famed Inner Harbor, this mid-Atlantic branch is right in middle of a busy hub of activity.

The seven-person team handles all aspects of ocean and air imports and exports, and includes a full-time customs broker. The branch stays busy with a host of repeat customers and large projects. Regular clients include Richmond, Virginia-based Reynolds Packaging (“there’s a huge overseas market for foil and Ziploc bags,” explains branch manager Mark Brndjar) and Maryland-based Cristal – a manufacturer of titanium dioxide products. Large shipments are also routine. “We’ve handled more than 150 tons of air freight to South Africa on behalf of just one customer since October,” Mark says.

He explains what makes the office – and EMO Trans as a whole – successful. “I’ve worked for other companies where things have to be done a specific way and your options are limited. EMO Trans is not that way at all,” Mark says. “Customer service and good customer relations are at the forefront, and we are always given the flexibility to find the right solution – even if it’s outside the box. In fact, ‘out of the box’ thinking is always encouraged!”

Congratulations to the Baltimore branch for representing EMO Trans so well in the mid-Atlantic.

PEOPLE ON THE MOVE
EMO Trans Denver is excited to announce that Okono Orkhon joined the import department on March 4. Neil Mutti joined EMO Trans San Francisco in Air & Ocean Import Operations on February 11, and Rodney Villaruz was hired as Import/Brokerage Manager on March 11. EMO Trans Atlanta congratulates Kennon Carter on his new role as Ocean Export Manager and Donna Nunz on her new role as Inside Sales & Operations Coordinator.
INTERNATIONAL FOCUS: EMO Trans celebrates 25 years in Australia

Without too much fanfare, a small celebration was held in February to recognize the quiet achievement of those who have advanced the success of the EMO Trans brand at “the bottom of the world” for the past quarter of a century. It also offered a chance to reflect on key factors that have contributed to a 20% growth rate every year since 2007.

That year, a push for new growth and development began in earnest. Ownership moved away from local hands, and a new board of Jo Frigger, Thomas Klinkhammer, and Ian Ahern began to build on the region’s two offices in Sydney and Melbourne. “We’re to the point now where ‘EMO Trans Oceania’ is probably a more apt description of who we are today,” Ian explains. He’s taken the lead as EMO Trans Australia’s Route Development Manager and played a central role in expanding into surrounding areas in response to market opportunities. Australia, along with New Zealand and New Guinea, are major global exporters of bulk “raw” minerals and fuels for industry and primary agricultural products. â€œWe have offices in all main Australian centers such as Sydney, Melbourne, Brisbane, Adelaide, and Perth. There also is EMO Trans New Zealand with the main office in Auckland and a soon to open Christchurch operation,” Ian explains. “EMO Trans Papua New Guinea (Port Moresby) is poised to commence sometime in the first half of 2013. Geographically, we're the stepping off point for all freight to the Pacific Island nations, which gives EMO Trans a presence second-to-none in the region.”

In total, a “family” of 45 exceptional freight managers undertakes the diverse range of services expected of a progressive logistics company on the world stage today. Some have been with the company since its first days in the region. The company’s success has allowed for adding new faces of diversity and experience from all over the world. The region is large and encompasses areas with significantly differing requirements. The offices in each region have, by virtue of their location, a specific focus of global logistics tailored to their particular area. From consumer products borne out of Sydney to industrial supplies originating in Melbourne; from mining equipment coming from Perth to Auckland’s forestry needs – EMO Trans has applied its “success by performance” mantra to areas and companies that require a high level of personal service and attention to detail.

A case in point is the aviation spares/Aircraft on Ground (AOG) business. Brisbane is a major hub for airlines in the South Pacific region. Over the past three years, this arm of the business has not only stimulated growth and profit for the Brisbane branch and EMO Trans Australia, but also has created profit streams for the US and European offices.


Shown above, EMO Trans Australia's Melbourne office. Left to right: Balinda Spasovski, Import Operations; Robert Musgrove, Sales Manager; Joshua Pecaisting, Import Operations; Santina Caccetta, Export Manager; Gavan Lawlor, Branch Manager; Jenny Farrugia, Import Operations, and Adam Houghton, Export Operations.

"In these times of global change and volatility, we cannot afford to sit back on our success," Ian says. "New products and revenue streams will be added to the menu of current services offered. For example, we’re developing a new product for the mineral sector that offers the same expedient service currently reserved for AOG customers. Expected to roll out in 2013, it’s already gaining interest from mining companies who see how partnering with the proven service and trusted brand of EMO Trans could save them downtime."

The success of the first 25 years of EMO Trans in the Australasian region forms a strong pillar to support the continued growth of EMO Trans ‘Down Under’, as well as the company's overall growth in the global logistics environment.
OCEAN EXPORT UPDATES
 West Coast labor update
The labor situation at Southern California ports has finally resolved. Despite an initial failure to ratify labor contract agreements reached in December, the International Longshore and Warehouse Union Local 63 Office Clerical Unit voted in late February to accept contracts that will run through June 30, 2016. (source: Long Beach Press-Telegram).







View from the Port of Lisbon, Portugal




 

Rate changes at quarter end
Please note General Rate Increases (GRI) and changes in Bunker Factors (BAF) taking effect April 1, 2013. GRIs apply to all inbound shipments to the U.S. and Canada from the Transpacific and are as follows (date of cargo receipt at origin):

- USD 320/400/450/506 for USWC
- USD 480/600/675/760 for USEC & IPI

Second quarter BAF levels for Transpacific to USA traffic will change as follows (date of cargo receipt at origin):

USEC BAF 20’/40’/40’HC
1Q 2013 $840/$1,050/$1,182
2Q 2013 $812/$1,015/$1,142
      
USWC BAF 20’/40’/40’HC
1Q 2013 $443/$553/$623
2Q 2013 $429/$536/$603

The above rates include Low Sulfur (for all regions).

As always, EMO Trans will closely monitor the market and pass any reductions on to our customers.
COMPLIANCE AND CUSTOMS UPDATES
Implications of sequestration
With government spending cuts starting to take effect, many have speculated about the potential impact of sequestration on Customs and Border Protection (CBP) operations. At this time, the Transportation Security Administration says that the sequester will have little impact on the agency’s air cargo security division, and validation and audit activity will be conducted as usual. CBP will post additional information on its website.

Changes in air freight security on German exports
The German government expects to implement new regulations on air freight effective April 29. These regulations will change who is responsible for Known Consignor (KC) status. Instead of forwarders, German air security authorities will now assume responsibility. It’s predicted that more than half of shippers with Known status will lose it under the new regulations due to a rigorous certification process that takes months to obtain and a compliance process to maintain.

Those without KC status will need to apply screening techniques. While EMO Trans in Frankfurt has X-ray and trace detection equipment, there may be increased costs and challenges in making specific consolidations or flights. For more information, please reach out to your EMO Trans air export contacts.


Useful links
SPOTLIGHT ON SUCCESS
EMO Trans first freight forwarder open in Port of Lansing
The Capital Region Airport Authority (CRAA) has announced that EMO Trans is the first full service global logistics provider at the newly formed Port of Lansing, Michigan. EMO Trans took occupancy of a 48,000-square-foot cargo warehouse March 1. The launch of the Global Logistics Centre project is the first phase in the CRAA’s plan to spur more than $20 million in private development during the next decade. Lansing is an industrial area with an international market in the center of the state of Michigan, approximately 80 miles from Detroit. Read the complete press release here.
EMO Trans Los Angeles ships movie helicopter
Sometimes a little orchestration is needed to pull off a top performance! EMO Trans Los Angeles arranged shipment of a unique helicopter from Germany to Louisiana. EMO Trans Germany handled the ocean freight, while EMO Trans Houston took care of the transloading and delivery to LA. Marco Rohrer of EMO Trans Los Angeles wishes to acknowledge the hard work and successful collaboration of Elaine Stevens and Karen Rojas. "They made this delivery seamless," he says. The helicopter will be used in movie productions.
NOTABLE ANNIVERSARIES

15+ years    
Donna Schlatter Freeport 3/1/97
Ross Taylor Atlanta 3/31/97
Renee Villanueva Atlanta 3/27/97
Christopher DeRoy Hartford 3/2/98
     
10+ years    
Ellen Trione Freeport 3/5/01
Elizabeth Castro Houston 3/3/03
Amber Miller Dallas 3/3/03
     
5+ years    
John Vranic Cleveland 3/29/04
Laura Castelveter Pittsburgh 3/15/05
Merlyn Errasquin Philadelphia 3/1/05
Janice Fahrenholtz Denver 3/28/05
Ramon De La Rosa Jr. El Paso 3/1/06
Juan Antonio Garcia Houston 3/1/06
Donna Greenlee Chicago 3/19/07
Christy Greer Atlanta 3/1/07
Thorsten Jankowiak Houston 3/26/07
Wynnette Whitehurst Atlanta 3/15/07
Steven Tavella Philadelphia 3/10/08

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