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SEPTEMBER 2013

Articles in this issue

People on the Move
Air Updates
O
cean Export Updates

 

Compliance & Customs
Notable Anniversaries


WELCOME MESSAGE

Abraham Lincoln said, “The best way to predict your future is to invent it!” 
 
In our fast moving transportation environment, we have to constantly reinvent ourselves to be able to stay ahead of the curve. Our customers’ needs change all the time, and it’s our job to provide the best service while offering the most cost efficient way to move shipments and maintaining transparency in the supply chain.
 
Our global planning efforts center on securing our organization’s future growth and forming agreements with important new and existing clients. Expansion plans include new offices in Papua New Guinea, new arrangements in Eastern and Western Europe, and additional offices in the USA. All of this will be done in carefully measured steps. A company should be built like a house that starts with a strong foundation and is built brick-by-brick, wood frame-by-wood frame. That’s the approach we’ve used with the EMO house for nearly 50 years. Our stability is underscored by the longevity of our global team, and many employees have been with us for 20, 30, and 40 years. Our results, the true measure of all business ventures, remain strong. This is proof that our philosophy of Success by Performance – an entrepreneurial approach that benefits all employees – is the right path to follow.
 
While the situation is fairly stable on the forwarding front (the non-asset side of the transportation business), the carriers’ world is in turmoil; airlines and steamship companies alike are struggling to make money. Cargo airplanes are being parked in the desert, and slow steaming ships to save fuel have become commonplace. While some of this predicament is self-inflicted (like the creation of overcapacity), much of it is caused by shifting markets and the downturn of certain economies. No one can take comfort in this situation. We need our carrier partners to make money in order to ensure long term, unwavering conditions for the benefit of all. The struggle with rate structures for air (the airlines should really consider a return to the “all in” rate) and the attempts for GRIs on the ocean side only lead to more confusion in the marketplace. Shippers and forwarders need clarity for long-range stability and development.  We are working with the carriers to achieve this goal. 
 
As we enter the last quarter of 2013, our focus includes planning for the upcoming year. While our offices work on their 2014 budgets, I will be traveling to Europe followed by a meeting between EMO Canada, Germany, and the USA in Toronto. We then prepare to conclude the year with a Regional Managers’ conference in Atlanta.
 
In the meantime, hopefully, there will be some spared moments to enjoy the Northeast's fall foliage. 
 
Best regards,
 
Jo Frigger


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PEOPLE ON THE MOVE


Kathy Miller (Atlanta) has accepted a new position as Corporate Sales and Marketing Coordinator. "Kathy’s position has developed over time, and she is now responsible for creating much of our corporate marketing material," says president Marco Rohrer. "We now have an opportunity to take full advantage of her vast knowledge and skills."
 
Kathy will focus on developing the EMO Trans brand by promoting a consistent identity across all branded materials such as the website, newsletter, presentations, and other literature.

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SPOTLIGHT ON SUCCESS                
 
 
Miami Completes Major Emergency Charter Flight

In August, EMO Trans Miami successfully secured an emergency charter movement for Jamaica’s national power company. An Antonov 124, one of the world’s largest cargo aircraft, was positioned at Montego Bay Airport to move the power plant’s steam turbine and parts to the US Midwest for repairs. The mission included fast paced compliance work and significant ground logistics at both origin and destination. 
 
Despite a very short window of time, the operation was successfully completed according to schedule. Special kudos to Annie Smith and the Miami Air and Import teams, Michael Horn’s team in Chicago, and Tom Harlin, EMO Trans’ CFO who supported the financial requirements to make this happen. With this outstanding teamwork and a delighted new customer, EMO Trans has now been awarded the return charter back to Jamaica in early October.
 
This move is part of EMO Trans Miami’s expanded market strategy in the Caribbean Basin Region (CBR), which includes Central America, Colombia, Venezuela, and the Caribbean. The CBR remains very close to the USA in terms of trade partnerships, cumulatively accounting for more than $50 billion in annual bilateral trade. 


 
   

   



Baltimore Gets Crackin’ at Annual Crab Feast

On August 8, EMO Trans Baltimore attended the Baltimore Propeller Club’s annual Crab Feast – a much-anticipated event that attracts more than 4,000 people from all corners of the maritime industry. Representatives from steamship lines and freight forwarders, and service providers such as maritime lawyers and bankers, all gather to enjoy the region’s most popular delicacy.
 
EMO Trans’ Jenni Frigger-Latham was introduced to the joys of the Crab Feast this year, and Baltimore branch manager Mark Brndjar took the opportunity to greet attendees who stopped by to say hello.

 
Pictured left to right: Robin Finke and Stacie Countryman (ATL-Corp),
Dennis Barrett (BWI), John Menges (PHL), and Jenni Frigger-Latham (Freeport)
 
 

Pictured standing: Mark Brndjar (center) BWI branch manager;
Jon Menges (right), PHL branch manager;
and Dennis Barrett (back to camera), BWI
 

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FEATURED BRANCH: HARTFORD

 


Back row, left to right: Tim Melough, Adam Lincoln, Chris Deroy, Tom Brown, Keith LaFlamme
 Middle row, left to right: Gage LaFlamme, Carrie Delconte, Amber Centrella, Dee Thibodeau,
Terri Engel, Susan Budd, Jeff Cournoyer
 Front row, left to right: Billy Kofalk, Cynthia Hitchcock, Amie Olschafskie
 Not pictured: Donna Amendola
 
With its rural setting only an hour or two from most major Northeastern destinations, EMO Trans Hartford enjoys a centralized location and loyal following among its staff and customers.
 
Open nearly 28 years, the Hartford branch has 16 employees, many of whom have been with the company for the long haul. “Our team here is like an extension of our own families at home,” says branch manager Jeff Cournoyer. “This level of loyalty is highly unusual in the forwarding industry and a reflection of the culture here at EMO Trans. Tom Brown, Donna Amendola, and Susan Budd have each been with EMO Trans for more than 20 years, and our average employee tenure is 10 years.”
 
Serving industries ranging from industrial and retail to machinery and spare parts, Hartford moves ocean freight through the NY/NJ ocean port and air import/export through JFK. Its full service capabilities and facility size give the branch the ability to cross-dock and provide warehouse/inventory management solutions for customers.
 
Hartford continues to grow by providing its customers innovative solutions and attentive customer service. A case in point: the branch has formed a strong relationship with global farm equipment company, FarmTek. In search of improved freight flow and greater shipment visibility, FarmTek approached EMO Trans Hartford just one year ago. In a relatively short time, FarmTek has quickly become a model ocean import account for the branch.
 
Headquartered in Connecticut, FarmTek sources goods predominantly from China and other Asian countries, and these goods are almost exclusively shipped via ocean carrier. “We were challenged by FarmTek to find solutions that demonstrated measurable improvements in many areas,” Jeff explains. “The success we have had reflects a collaborative and ongoing effort between our people, who together determined the goals and expectations of the customer and built the SOP to get and keep us there. Central to this effort have been Gage LaFlamme, our Import Specialist, Carrie Delconte, Inside Sales & Key Accounts, Dee Thibodeau, Import Manager, as well as our Ocean Guru and mentor in Atlanta, Robin Finke.”
 
FarmTek appreciates EMO Trans’ transparency and willingness to customize its processes to fit exactly what the company needed. “When we began our search for a new international forwarding partner, we were looking to improve shipment visibility throughout our supply chain and operations. We have been successful with EMO Trans because of a deliberate and well-executed integration plan and implementation team,” says Jeffrey Williams, FarmTek’s Manager of Supply Chain and Logistics. “We met on a recurring basis to review performance and progress, and identify areas that needed improvement before they created issues for either company.”

 

 
EMO Trans was invited to Farmtek’s annual golf tournament held at the Rolling Meadows Country Club in Ellington, CT. From left to right: Gage LaFlamme (winner of Longest Drive Award), Matt Kmet (EMO Trans Atlanta’s visiting CHB "bullpen" ace, Jeff Cournoyer, and Jeffrey Williams.
 

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AIR UPDATES

 
Rate hikes on the horizon

Lufthansa Cargo has announced a 20% rate increase to become effective with its winter schedules. To date, no other carriers have released statements that they intend to follow suit. EMO Trans will monitor the situation and actively seek alternatives that minimize the impact on our customers.

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OCEAN EXPORT UPDATES


Bunker charges (BAF) effective October 1 from Asia Pacific to USA traffic
 
To destination: U.S. West Coast
    USD 25 per R/T
    USD 424 per 20' container
    USD 530 per 40' container
    USD 596 per 40' high-cube container
    USD 671 per 45' high-cube container
 
To destination: via U.S East Coast and San Juan, Puerto Rico
    USD 50 per R/T
    USD 780 per 20' container
    USD 975 per 40' container
    USD 1097 per 40' high-cube container
    USD 1234 per 45' high-cube container
 
To destination: all inland points via U.S. West Coast
    USD 25 per R/T
    USD 706 per 20' container
    USD 883 per 40' container
    USD 993 per 40' high-cube container
    USD 1118 per 45' high-cube container
 
General Rate Increases (GRIs) effective October 15
 
For Far East (except India, Sri Lanka, Pakistan, and Bangladesh), S. Africa, and Middle East to USA and Puerto Rico:
   USD 320/20' container
   USD 400/40' container
   USD 450/40' high-cube container
   USD 506/45' high-cube container
 
For India, Sri Lanka, Pakistan, and Bangladesh to USA and Puerto Rico:
   USD 340/20' container
   USD 425/40' container
   USD 478/40' high-cube container
   USD 538/45' high-cube container
 
Given that the GRIs are slated for the future, it's not yet clear how the market will respond and if they will actually be implemented. It's not uncommon to see carriers soften up only hours before implementation. With this in mind, we might not see reductions until closer to the effective date.

 

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COMPLIANCE AND CUSTOMS CORNER



AES Changes Take Effect October 15

Earlier this year, the Department of Commerce's Bureau of Industry and Security announced changes to its Automated Export System (AES) as a result of export control reform. The announcement details what exporters and authorized agents need to know in order to successfully report electronic export information in the AES. Changes will take effect October 15. To read the full ruling, click here. Be sure to check the website for broadcasts and other updates on this important topic.
 
Free Webinar on October 1
Take advantage of a free webinar on “Doing Business in a Changing China”, sponsored by the Journal of Commercehttp://www.joc.com/webcasts

Useful links:
Bureau of Industry & Security
U.S. Census Bureau’s Foreign Trade Division
C-TPAT
TSA
DHS
Customs and Border Protection



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NOTABLE ANNIVERSARIES
 

20+ YEARS      
Tom Bayes             Dallas 9/5/93  
       
10+ YEARS      
Kay Pinnock Freeport 9/26/94  
Denise Coucoulas Freeport 9/19/00  
       
5+ YEARS      
Michael Horn Chicago 9/20/04  
Marijke Hildreth Denver 9/25/06  
Cesar Fernandez Milwaukee 9/5/07  
Helen Menke Chicago 9/6/07  
Kim Potts Detroit 9/4/07  
Daniela Livigni Miami 9/22/08  

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