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Cleveland Centralized Examination Station Experts Explain Customs Exams, Holds
As the Cleveland Centralized Examination Station (CES), we understand the goals of U.S. Customs and Border Protection (CBP) in examining cargo imported by land, air, and sea. The foremost purpose is keeping our country secure and citizens safe. However, we also fully understand the anxiety that can accompany word that your cargo has been flagged for a U.S. Customs exam – particularly as such action can result in major delays and expense for stakeholders.
Bear in mind that in addition to its own regulations, the CBP is tasked with enforcing hundreds of laws on behalf of 40+ other federal agencies, including the USDA, the FDA, and the U.S. Fish & Wildlife Service. Understanding what triggers an examination may help you avoid one. At the very least, you’ll know better how to aid authorities in a manner that helps expedite the process and get your goods moving as soon as possible.
That said, not all circumstances that result in a U.S. Customs exam or manifest hold are within shippers’ control. In fact, shippers might do everything “right” and still find their goods among the 3-5% selected for closer inspection.
Some of the holds that authorities can place on international shipments include:
- Manifest hold. This occurs when there is a problem with documentation. Usually, it’s the result of missing paperwork, such as a bill of lading. Typically, the U.S. Customs agent is going to request additional or corrected paperwork and then your goods will be on their way.
- CET Hold (A-TECT). This is a hold imposed by the Anti-Terrorism Contraband Enforcement Team. This is a special branch of the CBP, which imposes holds on shipments suspected of containing potentially unlawful items (drugs, currency, weapons, or other illicit materials).
- Commercial enforcement hold. This is sort of a blanket hold that is going to cover a range of potential issues – not only from the CBP but other federal agencies, such as the U.S. Department of Agriculture or the Consumer Product Safety Commission. The overarching goal is to ensure that any goods entering the country are compliant with federal laws and regulations.
- PGA Hold. Similar to a commercial enforcement hold, a Participating Government Agencies Hold means the shipment in question was flagged for compliance issues, rather than customs issues.
- Statistical Valuation Hold. This occurs when there is a discrepancy between your shipment and the manifest. For instance, if the weight of your shipments is much higher than might be anticipated given the commodity, the shipment might be flagged for a statistical valuation hold.
If your shipment is flagged, there can be one of three types of customs exams: Vehicle and Cargo Inspection System (non-intrusive inspection), a Tail Gate Exam (examiner breaks the seal of your container and reviews some of the contents), or an Intensive Customs Exam.
That last type is where a CES comes in. For this kind of exam, your goods must be transported to a CES, unloaded, held, inspected, and then reloaded before heading to its next destination. The shipper must pay for drayage and detention costs, as well as the labor to load and unload and reload. An Intensive Customs Exam may cause up to 30 days in delays and cost up to a few thousand dollars.
Having an efficient Cleveland Centralized Examination Station can help to speed up the Customs inspection process and reduce the amount of time your goods are tied up.
What, Exactly, is a Cleveland Centralized Examination Station?
A CES is a place where Customs officials can come to physically inspect and examine import and export freight and cargo. These are privately-owned and operated facilities (like On Time Delivery & Warehouse) that allow for physical examination of internationally imported or exported goods.
Cleveland Warehousing Helps Businesses Optimize Resources, Maximize Profits
Cleveland warehousing is an element of operations that many small businesses in Northeast Ohio cannot afford to overlook if they manufacture, export, or transport goods in any capacity.
Although many companies will try to manage their own warehouse duties in-house, doing so efficiently can quickly become all-consuming – and close to impossible. That’s why many businesses ultimately end up outsourcing Cleveland warehousing functions to a third-party logistics provider.
What makes some firms reticent to take the first step on the initial investment is the cost. But in the end, outsourcing Cleveland warehousing functions has proven time and again to boost productivity, improve on-time-deliveries and customer satisfaction, and save money.
The customer’s journey isn’t over once the order is placed. Working with a dedicated 3PL warehouse provides you with greater transparency and control to ensure customers receive their products intact and on-time – and to promptly notify them of any issues if that isn’t going to be the case.
Benefits of Partnering with a 3PL for Cleveland Warehousing
If you’re considering a warehouse partnership with a third-party logistics firm, it’s important to go into it knowing what you hope to gain. Some of the top benefits that our Cleveland warehousing customers have identified as holding the most value:
- Improved inventory management. It’s estimated that 8 percent of small businesses fail to track their inventory. Stunningly, nearly a quarter don’t maintain inventory at all. In effect, order processing and shipments may be delayed, resulting in poor customer experience. When you have a centrally-located warehouse that is dialed in with freight logistics capabilities, it becomes easier to track, manage, and ship your inventory. You’ll have the advantage of low-stock alerts well in advance of when you’re potentially risking running out. This will also allow you to give customers potential alternatives, as opposed to simply keeping them waiting in the dark.
- Efficient packing and processing. A solid warehousing partner goes beyond simply storing your goods. It has the supplies, the equipment, and the staff to move, package, and process your orders. Pallet racks, packing materials, loading docks – these are just a few examples of what a third-party warehouse may be able to offer.
- First-rate customer service. According to RetailDive.com, nearly 65 percent of online shoppers expect their free shipping order to arrive within three business days. At the very least, there is an expectation that customers know – and be kept updated about – the estimated or guaranteed delivery time. Nearly 90 percent are willing to pay more to ensure faster delivery. The speed of delivery is sometimes the No. 1 thing buyers consider when deciding their shipping method. So as a business owner, this is something you must take seriously. If you fail to deliver orders on time, your reputation can tank and you may hemorrhage customers. When you’re working with an experienced warehousing partner, you can arrange for optimized distribution and timely delivery. This reduces errors and potential product damage during the order fulfillment process. Warehouses can also help keep your goods safe and secure, reducing the odds items will get lost or stolen during handling.
- Price stabilization. There are lots of factors that can influence the price of a product from month to month or year after year. Warehousing does provide some opportunity for price stability, though, because it allows businesses to store goods for a later date, when demand may be higher. Consistent stock levels can help ensure you can offer consistent prices to your clientele.
- Better risk management. In addition to serving as a buffer from wild pricing swings, warehousing can offer risk management services that will minimize your losses due to improper storage, packing, and deliveries. Goods that are properly packed, stored, sorted, and picked will have a longer shelf life, which means you aren’t losing product unnecessarily.
If you are looking for a warehousing and logistics partner in Northeast Ohio, On Time Delivery & Warehouse has a reputation as a leader in the field. Our customers trust us to provide quality warehousing services, inventory tracking, and distribution – so that your goods make it to their destination intact, on time, every time.
For information on 3PL Warehousing and Inventory Management Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Peak shipping season ahead of the holidays is about to begin for a volatile supply chain, July 29, 2022, By Lori Ann LaRocco, CNBC
More Blog Entries:
Federal Shipping Reform Impact to Cleveland Warehousing, Trucking, June 20, 2022, Ohio Warehousing Blog
Seasonal Cycles of Ohio Trucking Are Back, Per Cleveland Trucking Experts
Ohio trucking services have historically adhered to clear seasonal cycles, generally broken down into four quarters.
We all know that trucking – and the transportation industry as a whole – are heavily influenced by supply-and-demand, which set the bar for rates and capacity. Market conditions can vary year-over-year, but there are also consistent seasonal patterns that emerge as well.
But as our Northeast Ohio trucking service providers can explain, the largely predictable ups-and-downs of the trucking and freight industry were thrown completely for a loop during the pandemic. As noted by the International Finance Corporation, land freight was a somewhat less impacted cog in the supply chain wheel (compared to air and ocean freight) if only because roads across the globe largely remained open (except in countries or places under severe lockdown). Trucking capacity ended up being strained, particularly as there was a booming demand for food and medical supplies.
What we’re seeing now is those supply chain imbalances start to ease. The Journal of Commerce reports the market is beginning to realign (though not quite to the level of pre-COVID levels and pricing). What this means is we’re going to start seeing a shift back to seasonal Ohio trucking trends.
Being Prepared for Seasonal Ohio Trucking Trends
An understanding of trucking seasonality is important for stockholders in a broad range of industries because it can be used to forecast capacity, rates, and delivery times.
Those in the trucking and logistics sector typically identify four key seasons in freight:
Quiet Season (January – March). Volume tends to be down during this quarter. Weather across much of the U.S. (including Northeast Ohio) is not ideal for shipping. It may be possible during this quarter to find somewhat reduced shipping rates because demand has slid.
Produce Season (April – July). Ohio trucking volumes start to kick into high gear. The market tightens, demand increases, and finding a truck becomes more challenging. As a result, this season is associated with rate increases.
Peak Season (August-October). The produce season is starting to ease, but shippers are still very busy. They’re prepping for the back-to-school supply demands, as well as ramping up for upcoming holiday demands. Both volumes and rates are going to be at their peak during this period.
Holiday Season (November-December). Thanksgiving, Christmas, and New Year’s Eve put a lot of demand on the freight industry – with pressure to get it all wrapped up before the final week of December. Once we get to that final week, demand for trucking freight begins to slow, and continues that lull until the following spring.
Specifically here in the Midwest, we’re going to see the highest trucking volumes between June and September.
Cleveland 3PL Recommends Ample Planning to Cope With Packaging Shortage
Packaging supplies continue to be in high demand despite limited availability, with shortages expected to continue through to at least the end of this year. Our Cleveland 3PL providers are advising the best way to avoid major problems on this front is to forecast, plan, and order materials at least six months out.
Basically, if you’re expecting higher demand and product shipping around the holidays, the time to start ordering those packaging materials now and arranging for their storage.
Packaging materials include things like boxes, foam inserts, poly bags, adhesive tape, anti-static sheets, labels – all the items that ensure items are safe, protected, and clean. While packaging tends to be something of an afterthought for consumers, smart businesses recognize that the right packaging is mission critical. Improper packaging can lead to breakage, spoiling, rusting, leaking – or the product never even making it to its destination. All of this not only hurts the company’s bottom line, but also its reputation.
One analysis by Smithers revealed that in a single recent year, global spending on packaging supplies was more than $917 billion. Demand was expected to increase nearly 3 percent, crossing the $1 trillion threshold, by 2024. But that was before the pandemic, when e-commerce demand exploded.
Compounding matters is that the packaging materials industry hasn’t been immune to the seismic supply chain disruptions of recent years. Not only the pandemic, but extreme weather and a greater demand for sustainable materials has but a lot of pressure on suppliers.
Senior supply chain analysts with Gartner anticipate packaging supply is going to remind a challenge for companies through the 2022 holiday season. Lead time on packaging supply orders that used to take four to six weeks is now more like six months. Things like labels previously had lead times of somewhere around four to six weeks, but are now closer to three-to-four months.
Cleveland 3PL Can Help by Establishing Supply Chain Resilience
In addition to forecasting the need for packaging materials well in advance of expected demand surges (months instead of weeks in advance), companies might also consider working with a third-party logistics company.
There are numerous benefits to working with our Cleveland 3PL, but one that can make a huge difference on this front is helping to establish supply chain resilience.
Our services include not only warehousing and trucking, but packing, labeling, and kitting. We have close connections with suppliers of all kinds of packaging materials, and can work with customers to find alternative solutions when their original packing plans are jeopardized or uncertain.
Throughout the pandemic, there’s been a rush on paper product packaging – primarily folding boxes, corrugated boxes, and non-corrugated boxes. We may see this start to ease a bit as supply begins to finally catch up with the demand, but that might not be for another six months or so, which means companies need to think outside the box (literally).
We can help customers explore alternative packaging methods. That could mean sacrificing certain aspects that are the ideal (glossy coatings, colorful graphics, etc.), but less complicated and therefore more realistic for vendors to turn around by the deadline. As long as the package keeps the product clean, safe, and protected while it works its way to its final destination, that may need to take priority over certain custom aesthetics.
We work to help our clients formulate supply chain segmentation strategies. These involve optimizing certain processes for different needs/outcomes to serve customer bases that are diverse and/or growing.
For instance, the same product may be sold both in retail stores and online. Customers may be buying the same thing, but they have different needs when buying in the store than purchasing online. You might break up the inventory for those two segments and store – and package – them differently. Items sold in stores may require less packaging than those sold online.
Packaging needs can be segmented by material type, end-use markets, and regional markets. Efficient supply chain segmentation strategies can help reinforce your supply chain resilience, allowing you to be better prepared for challenges – whether that’s the expected (like an ongoing packaging shortage) or other hurdles not yet forecasted.
For information on 3PL Warehousing and Inventory Management Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
How to find packaging materials in a ‘perfect storm’ of supply chain issues, June 16, 2022, By Jen A. Miller, Supply Chain Dive
More Blog Entries:
Benefits of Outsourcing Cleveland Inventory Management, May 27, 2022, Cleveland 3PL Blog
Federal Shipping Reform Impact to Cleveland Warehousing, Trucking
A new law promises sweeping changes to the ocean shipping industry following more than two years of port delays, congestion, and growing consumer costs – all of which may have an impact on Cleveland warehousing and trucking. The bipartisan act has several goals. These include:
- Promotion of U.S. shipping exports.
- Limiting ocean carrier market power (thereby reducing shipping costs, which have risen dramatically this past year).
- Improving supply chain efficiency overall.
As our Cleveland warehousing and trucking professionals can explain, the Ocean Shipping Reform Act is the most significant overhaul of shipping regulations in nearly 25 years. The precise impact it will have on Northeast Ohio supply chains isn’t crystal clear, but there is almost certain to be a ripple effect.
Many shipping companies have lauded the measure as a substantial step in the direction of addressing the growing list of shipping disruptions in recent years, including not only astronomical fees, but a lack of containers fit for agricultural exports.
However, much of the law’s effectiveness is going to come down to the Federal Maritime Commission, which has the authority to regulate the shipping industry, but with limiting funding, has always been slow to do so. The law does empower the agency with more enforcement power to investigate and penalize unfair practices. However, even the head of the FMC acknowledged to Supply Chain Dive that the law is “no silver bullet” and there may only be so much the feds can do to check shipping port congestion and soaring costs driven by supply and demand.
Supply Chain Delays, Congestion Drive Up Costs
Virtually all supply chains are subject to some degree of volatility, to varying extents. That’s why our 3PL Cleveland warehousing and trucking team is prepared at all times to forecast sudden shifts and changes and quickly adapt.
But federal legislators have been under intense pressure to do something as global supply chains have been disrupted and erratic ever since the start of the pandemic more than two years ago. Unpredictable schedules have thrown off regular business operations, resulting in higher prices for transportation, even amid big delays.
Benefits of Outsourcing Cleveland Inventory Management
Inventory management is a systematic approach to sourcing, storing, and selling inventory. That includes both raw components and finished products. Your Cleveland inventory management strategy must involve swift and accurate identification of the right stock, at the correct levels, in the right time and place – and at the ideal price point.
Inventory management involves numerous duties, including:
- Controlling and overseeing purchases
- Maintaining the storage of stock
- Controlling the amount of product for sale
- Order fulfillment
This is a huge responsibility – and tough to consistently nail down without the proper systems and professionals in place. That’s why many companies opt to outsource this component of their supply chain.
Any company in a goods-based business recognizes the impact of inventory management on operational efficiency. Lack of adequate inventory will mean lost sales and unsatisfied customers. Too much inventory will mean higher costs for storage and management, less cash on hand, and reduced value of your products. The U.S. government recognizes the value of proper inventory management to the extent that publicly-traded companies are actually required to track inventory and document management systems if they want to be compliant with the Securities and Exchange Commission.
Exact inventory management systems can vary from business-to-business, depending on their size, the types of products sold, and the channels through which they’re sold. That said, partnering with a third-party logistics company means you have the benefit of a system that’s flexible, processes that have been proven, and professionals who are experienced.
Here, we’re going to run through the benefits of outsourcing Cleveland inventory management one-by-one.
Importance of Blocking & Bracing Cleveland CFS Cargo
Blocking & bracing are essential to ensure maximum protection of your Cleveland CFS cargo.
As our logistics professionals can explain, meticulous planning is critical in container loads to ensure equal weight distribution during transit. It’s especially important for damage prevention when moving larger-sized loads.
Properly securing cargo may take a bit of extra effort, but it ultimately saves you time and money, increases safety, protects business relationships, and is required by state and federal laws.
We work to correctly block & brace every portion of loaded freight containers, ensuring your cargo gets where it needs to be – intact, on time, every time.
What is Blocking & Bracing?
Blocking is the means of preventing loads from moving laterally (side-to-side, front-to-back). Bracing, meanwhile, is the means of preventing vertical movement (up-and-down). Failure to brace properly can result in loads jumping over the blocks. And if the blocks aren’t implemented properly, the braces aren’t going to hold.
Visualize your heavy load resting in a container. Some assume that because it’s heavy, it’s unlikely to budge much. This is a miscalculation – a potentially catastrophic one. As our Cleveland CFS cargo experts can explain, once a container is moving, the internal object’s momentum in any direction is going to be proportionate to its weight.
Whatever the mode – whether it’s rail, truck, or ship – proper blocking, bracing, and loading is critical. It’s also important to understand that these techniques differ from load-to-load.
In the case of CFS shipments prepped for intermodal transport (cross-country or international), expect the potential for all kinds of jostling movements, including:
- Forward surges
- Front-to-back pitching
- Side-to-side rolling
- Up-and-down heaving
- Irregular motions
- Vibrations
- Sudden impacts
When your shipment is properly blocked and braced, it’s going to be protected on every leg of the journey.
Some of the factors impacting how we block and brace:
- Container size
- Loading type (cartons, drums, pallets, etc.)
- Dimensions
- Number of pallets or units
- Weights
- Whether the cargo will be loaded onto pallets or floor-loaded
How to Get the Best Cleveland Trucking Spot Rates
The Wall Street Journal recently reported that last-minute spot loads in the truckload market are once again falling as the shipping demand is becoming more aligned with available truck capacity. This is great news for B2Bs and retailers alike. Still, how can you be assured you’re getting the best Cleveland trucking spot rates? Here, our Cleveland trucking team offers some insight.
Contract Rates vs. Spot Rates
For those who may be unfamiliar, most truckload freight is moved via contract rate. This is when shippers and trucking companies strike a longer-term agreement to regularly move a given volume of goods between Origin A to Destination B at a predetermined, per-mile rate that may/may not be adjustable.
Spot rates are more of a one-off deal, but they still comprise about 20 percent of the truckload freight market. They can include (but are not always) same-day and next-day deliveries. These rates are based on existing supply-and-demand for trucks available to make one-time or inconsistent load volumes slated for specific origins/destinations. Some regions/markets can be much more volatile than others, but the spot trucking market in general tends to be much more capricious, with rates negotiated closer to deadline by the load, the lane, or the time. High load volumes + tight trucking capacity = Higher spot rates.
Companies that tend to rely on Cleveland spot rate trucking usually have lower volumes, inconsistent timing, varied destinations, and special/non-standard load requirements.
It’s worth noting that while news of dropping spot rates is definitely welcome by many shippers, it comes on the heels of rates that have been historically high. Ultimately, you still want to make sure you’re getting the most for your money.
Tips for Scoring Great Cleveland Trucking Spot Rates
Rate negotiation factors are fairly standard, but being prepared and knowledgeable can help ensure you’re getting the best possible deal.
Side note: Best doesn’t always mean cheapest. If you get the lowest price, but it results in a missed pickup, damaged products, or hidden charges, it’s going to cost you much more in the long run. When on-time, intact delivery matters, your trucking partner becomes an extension of your brand. Make sure they have a reputation worthy of the trust you’re placing in them.
Beyond that:
Cleveland 3PL Warehousing Must Evolve With Shifts in Customer Demand
Top-performing businesses have always felt big pressure to earn and maintain superior customer satisfaction. These days, however, they’re faced with the herculean task of doing so while grappling with the aftermath of a global pandemic, long-standing labor shortages, and a seemingly unrelenting stream of supply chain disruptions. The good news is: These challenges too shall pass – eventually. However, some recent changes are part of bigger movements that are likely here to stay. Primarily, these include booming e-commerce sales, high demand for direct-to-consumer deliveries, and robust enforcement of warehouse worker rights. One way to gain an edge on the competition is by working with a dedicated Cleveland 3PL warehousing & distribution company – particularly one with a rock solid reputation and the flexibility to shift amid changing times and customer demands.
Recently, the Logistics Managers Index (which measures U.S. supply chain pressures) rose to a record-high. This reflects not only soaring inflation costs impacting inventory and logistics, but also the waning amount of available warehousing space. Bloomberg reports inventory stockpiles many companies purchased during the pandemic may be contributing. Companies are now holding excess inventory at premium rates, something likely to continue for at least another year. Consumer hesitance driven by inflation appears to be further exacerbating the issue. On the flip side, given the global supply chain tumult of late, many manufacturers, suppliers, and retailers have seen the value of having at least some inventory stockpiled so they aren’t caught short.
In any case, one thing is clear: Whereas warehousing was once considered an afterthought for most companies, it’s now recognized as a critical element in the go-to-market strategy for most firms.
“It’s sort of like the shift we saw with the information technology sector in the early aughts,” explained On Time Delivery & Warehouse CEO Anthony Figliano. “What was once basically a background function quickly became a pivotal part of intraorganizational planning – and for good reason. Today, it’s the warehousing and distribution functions that are increasingly acknowledged as mission critical.
“But of course, that’s been at the core of our wheelhouse from the start, so we’ve always recognized its inherent value. As 3PL partners, we’re as committed as ever to continuing to meet fluctuating demands with both top speed and accuracy.”
Business Advantages to 3PL Box Truck Deliveries
If you’re managing a products company, you know that more often than not, clients need their orders as soon as possible. No matter what your industry, speedy delivery is a universally high-value service. Box truck deliveries – particularly those with same-day and next-day capabilities – can help you achieve that.
Box trucks are ideal for companies that make frequent deliveries and drop-offs and have fast turnaround times. It’s a means of reliable transportation without the trailer, allowing for easier deliveries – particularly in tighter urban and suburban terrain. Working with a 3PL for box truck delivery services can help you enhance customer service, reduce liability risk, and even save money.
What Exactly is a Box Truck?
According to the American Trucking Associations, trucks move roughly 73 percent of the nation’s freight by weight. A good number of those local deliveries involve some type of box truck.
Box trucks fairly obviously get their name from their shape: They look like giant boxes. Sometimes referred to as a “cube truck,” “box van,” “cube van” or even “rolling toaster,” a box truck is typically much smaller than a full-size cargo truck, though with many of the same positive features. It doesn’t have a trailer, which can reduce the amount of time spent loading, hauling, and unloading. They tend to be smaller than dry vans, and they’re often more affordable than larger rigs. They’re also pretty secure – and fairly safe, when driven by an experienced, careful driver.
Some businesses invest in their own box truck purchases for local deliveries. Anyone considering buying a box truck right now should know the current market is quite volatile. According to truckpaper.com, a popular site for large truck sales, a used, tandem axle, 24′ box truck is probably going to cost somewhere north of $50,000, depending on the condition and mileage. A brand new 24′ tandem-axle box truck is probably going to be around $75,000, at least – and that’s if you can find it. Most medium-sized chassis trucks are backordered until at least 2023. On top of that, you need someone trained, reliable, and insured to load and drive it. Then there are maintenance outlays, gas expenses, and more. The costs can quickly add up.
Arranging 3PL box truck deliveries is often a smarter, more cost-effective option for many companies. At On Time Delivery & Warehouse, we have the box truck fleet AND the disciplined workforce to get goods where they need to go.