So, it’s not surprising that Canada, Mexico, and the United States are among each other’s top trade partners. Canada and Mexico have been one of the top three merchandise export markets for 49 states in the United States, the U.S. Chamber of Commerce reports.

“Cross-border trade with respect to Mexico, the United States, and Canada is more relevant than it ever has been. We have a stable geopolitical environment, free trade, and half a billion people between the three countries,” says David Cox, chief executive officer of Polaris Transportation Group, a provider of less-than-truckload (LTL) service between Canada and the United States, and other services. Each of the countries also boasts an educated workforce, making cross-border trade even more efficient, Cox says.

The focus on business opportunities within North America has grown over the past few years. “After 2008, we saw a lot of companies open up shop across the world, but predominantly Asia,” says Andreea Crisan, president and chief executive officer with ANDY, a provider of transportation and supply chain solutions, based in St-Laurent, Quebec.

For example, annual foreign direct investment (FDI) into China grew from around $40 billion in 2000 to $124 billion in 2011, and then growth rates dropped. In 2022, FDI into China hit about $189 billion—a massive number, but up just 4.5% from the previous year.

Rising costs for shipping, labor, and other expenses, along with the push for sustainability, have prompted companies to consider a wider range of countries when locating operations. Many organizations based in North America are assessing opportunities closer to home.

“It’s a natural transition, given all that’s going on, to come back on to the North American continent,” says Crisan. It’s also good for the planet to manufacture closer to the market for a company’s products, cutting the distance items have to be transported, she adds.

A growing number of U.S. companies are turning to nearshoring, typically in Mexico, for greater visibility, shorter delivery times, and a greater ability to influence the quality of their products, says Jose Minarro, managing director with Sunset Transportation’s Cross-Border Operations.

Mexico’s proximity to the United States, its availability of skilled labor, competitive labor costs, favorable trade conditions, and tax exemptions make it attractive for manufacturing, he adds.

The shorter transportation times are especially significant for products that are seasonal and/or time sensitive, like fashion items, says Jerry Haar, professor of international business at Florida International University. In addition, by shifting some operations from other parts of the world to Mexico, companies diversify their supply chains, lowering risk, he adds.

Boosting Nearshoring Benefits

Trade agreements between Canada, Mexico, and the United States further boost the benefits of nearshoring and cross-border trade. The most prominent, the United States Mexico-Canada Agreement (USMCA) went into effect July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). The USMCA contributes significantly to stability in rules and norms, reducing the risk to trading and investing across North America, Haar says.

The USMCA allows for a wide variety of duty-free items that can be exchanged among the United States and Mexico, Minarro says. An added benefit: Many manufacturing companies that set up shop in Mexico end up selling a portion of their production into the domestic market of approximately 130 million people, he says.

Surging Trade

“Since the inception of USMCA, trade throughout North America has experienced a surge, accompanied by a substantial uptick in investment within industries capitalizing on this opportunity,” says Rachel Honbarger, project manager with Tompkins Solutions, a provider of supply chain solutions.

In 2022, exports of U.S. goods with the USMCA were $680.8 billion, up 16% from 2021 and a 34% jump from 2012, according to the Office of the United States Trade Representative. Imports of goods through the USMCA also grew, rising 20.5% between 2021 and 2022, to total $891.3 billion.

Cross-border trade and nearshoring within North America offers companies based in Canada, Mexico, and the United States greater opportunity for profit and growth. At the same time, companies need to consider potential risks.

One is potential changes to trade agreements or policies. Even minor adjustments can profoundly affect the functionality or expenses associated with operating such a supply chain.

An example is recent efforts by some policymakers to amend aspects of Section 321, which allows many imported items to enter the United States free of duties and taxes, so long as the aggregate retail value of the products imported in one day and exempted from the payment doesn’t top $800. A slight modification to the scope of duty-free exemptions could lead to substantial shipping expenses, making nearshore distribution economically unviable, Honbarger says.

In addition, locating manufacturing operations across the border from distribution networks increases transportation expenses due to tariffs, longer travel distances, and a rise in shipment volumes to compensate for extended travel times.

Pulling Off Cross-Border Operations

Executing a cross-border operation requires complex technological integration to ensure seamless oversight and control of the entire supply chain process.

Without this, businesses face potential product loss, challenges in restocking distribution centers or meeting customer demands, and expenses stemming from inadequate visibility into operations.

Achieving the benefits of cross-border trade and nearshoring within North America—including increased profit and accelerated growth—demands an in-depth knowledge of the relevant regulations and documentation requirements to minimize the risk that shipments are held up by the authorities.

Working with a logistics provider with expertise and a commitment to this trade area is essential. “We’re in a 24-hour industry,” Cox says. Partnering with a quality broker that can support its clients around the clock cuts the chance of border mistakes and delays, he adds.

These providers can help shippers navigate trade across North America.

ANDY: High Standards and Customized Services

Supply chain solutions provider ANDY is well equipped to manage cross-border shipments, relying on its experience and expertise on the processes and requirements.

From its start with a single, burgundy-colored delivery truck, ANDY has grown into one of the 250 largest fleets in North America, as well as one of the fastest growing companies in Canada.

It also holds the distinction of being one of a handful of women-owned companies in the supply chain and transportation sector. “We try to empower women and place them in pivotal roles where they’re decision makers,” Crisan says.

At the same time, the men who are part of ANDY also contribute to its success. “Great men work here as well,” Crisan says. “It’s a diverse place. Our success boils down to our company culture.”

The culture has helped fuel ANDY’s tremendous growth since its start in 2001. That’s when Crisan and her father, Ilie Crisan, emigrated from Romania to Canada. A former bus driver, the older Crisan tried to find a job as a truck driver in Canada but was unable to. With savings running low, he purchased his own truck and got to work. “That’s how it started,” Crisan says.

Then 11 years old, Andreea Crisan has been key to ANDY’s growth. Among other responsibilities, she helped her father translate documents. “I grew in parallel with the company and so did my responsibilities,” she says.

ANDY now operates out of 15 locations across Canada, including eight terminals that are CTPAT and PIP certified, as well as a fleet of about 300 trucks and 800 trailers.

Its clients range from industrial and natural resource firms to retailers and manufacturers, and they can choose from drayage, transportation, logistics, distribution, and warehousing, and other transportation and logistics services.

Shippers also can choose from flatbeds, less-than-truckload and full truckload, and dedicated transport, among other options, as well as brokerage, warehousing, cross-docking, and other services. “We can act like a one-stop shop,” Crisan says. All trucks are outfitted with live tracking technology, providing clients with visibility into the movement of their shipments. They also can assess performance through reporting and analysis.

Building Cross-border Expertise

Since its earliest days as a company, ANDY has been handling cross-border shipments. “We’re experts on the processes and requirements, and well equipped to manage cross-border shipments, so there are no delays,” she says.

Because of its commitment and responsiveness to its clients, ANDY earned all the transportation business of one of its clients, in a dedicated contract arrangement. “We’ve become this company’s outsourced, dedicated private fleet,” Crisan says. For this company, ANDY provides planning, cross-docking, and daily deliveries and other services.

It’s an important and challenging role, and ANDY is more than up to the task. Because the client ships every day, its customers can place orders until late afternoon, and be confident their products will be shipped the next day.

“That’s our client’s promise to its customers, and our partnership makes us a very integral part of that promise,” Crisan says. Through the dedicated contract arrangement, the client gains quality service, predictability, and cost savings, she adds.

To achieve these benefits, ANDY worked with the company to truly understand its needs, and then tailored its services to meet them. “It’s a true partnership, and we’re working together to provide the services that can help our client achieve its objectives,” Crisan says.

Polaris Transportation Group: Customer-Focused Logistics Specialists

Along with its cross-border service, Polaris Transportation Group offers third-party logistics, warehousing, distribution, and supply chain management services.

Over the past three decades Polaris, one of the largest privately held Canadian LTL carriers, has moved 6 million shipments between Canada and the United States. “At Polaris, our principal activity is quick, transparent, cross-border transportation,” Cox says.

To ensure it can continue providing this, Polaris has cultivated an in-depth understanding of customs regulations, as well as strong relationships with customs and border protection agencies in both Canada and the United States, Cox says.

He and his team also have been very deliberate in investing in technologies that enable Polaris’ clients to work in a digitally transparent fashion.

Polaris ships a range of commodities, with a specialization in dry goods and high-value products. It also works in all transport modes. Along with its cross-border service, Polaris offers third-party logistics, warehousing, distribution, and supply chain management services.

Customers come in all sizes. “Smaller companies may move a handful of shipments a month, but those shipments impact their business, their well-being, and their reputation. I am equally in love with those businesses as much as I am the larger ones,” Cox says.

Four companies make up Polaris; three are Polaris Transport, Polaris Global Logistics, and Polaris Commercial Warehousing. In 2019, with the launch of NorthStar Digital Solutions—the fourth Polaris company—the head office housed a state-of-the-art digital lab. Among other initiatives, NorthStar Digital Solutions has explored artificial intelligence and machine learning, enabling it to continue searching for efficiencies within its processes.

Making Strategic Investments in Technology and Workforce

Polaris has also invested in robotic processing automation, artificial intelligence, and blockchain. By deploying a mobile driver application (FR8Focus) and integrating it into their TMS, clients can check the location of their freight through the customer portal in real-time.

“Everyone wants to know where their shipments are. This needs to be transparent,” Cox says. That holds true even when Polaris is working with supply chain partners, such as other carriers. “It’s seamless, transparent, and digital,” Cox says.

The use of systems like intelligent document workflow for order entry, accounts payables, and other functions, offers a “wealth of insight that enables the Polaris team to focus on managing complex situations,” Cox says.

Polaris operates a consolidation program for several U.S.-based clients that are shipping products to Canada from various regions within the United States. For this program, Polaris directs the companies’ shipments to a hub in the central United States, and then transports the cargo across the border on a single trailer.

“Shippers gain savings and certainty,” Cox says. They can be confident of the date their inventory or merchandise will arrive in Canada. This is harder to predict when products move in a piecemeal fashion.

Along with technology, Cox has been deliberate about searching for top employees, implementing best-in-class processes, and making sustainability a foundation of Polaris. “Whether it’s the environment or the social issues that affect business and the communities we’re working within—these are important to me as a business owner,” he says.

Sunset Transportation: Family Roots and Global Reach

Sunset Transportation offers all the services shippers need to conduct cross-border trade, from import/export transportation management to warehousing and transloading services.

The employee roster at Sunset Transportation includes a farmer, an Emmy winner, an Arabic speaker, a hometown pageant queen, and an amateur tractor pull competitor, along with several military veterans. The range of interests and experience among Sunsetters, as the employees are known, mirrors the broad roster of transportation and logistics services Sunset offers.

Sunset Transportation was founded in 1989 by Jim Williams. However, Sunset traces its start to 1861, when Jim Williams’ grandfather opened Williams Paper Company, which remains in operation today. Williams Paper Co. expanded its operations in 1970, when Jim Williams began managing the business’s fleet of trucks and established a thriving backhaul program.

In 1989, Sunset Transportation launched. In 2022, Sunset joined Armada Supply Chain Solutions, a food and restaurant logistics company.

For companies looking to do business between the United States and Canada, Sunset offers transportation services in all 10 Canadian provinces. It also provides import/export transportation management, truckload and LTL service, international export and import management, customs filing and management, financial support of goods and services tax (GST), and warehousing and transloading services. “We offer everything you need for cross-border trade,” Minarro says.

Working Between Mexico and the United States

Sunset also provides expertise and services for companies looking to trade between Mexico and the United States.

To help clients streamline their supply chains, Sunset takes a strategic approach to mapping their flows for inbound and outbound shipments, analyzing historical shipping data to identify sustainable opportunities to optimize freight, enhance service, save money, and improve technology. Using this insight, the Sunset team then presents a cross-border logistics solution that incorporates all the services needed for a streamlined supply chain.

In 2019, Sunset added a branch office in Laredo, Texas, offering cross-border logistics and border warehouse solutions. This was bolstered in 2021 with the opening of a cross-border office in Querétaro, Mexico, which includes an airport customs office, as well as a sales office.

Today, Sunset Transportation offers a range of services, including expedited freight, cross-border and customs solutions, international logistics, logistics management, and domestic, Mexico, and drayage carrier solutions. It also provides a comprehensive line of customs, warehouse, and freight brokers.

As important, Sunset internally handles every link of its supply chain services. “We don’t outsource customs and compliance functions,” Minarro says.

With CTPAT-certified warehouses in Laredo and Nuevo Laredo, Sunset can offer shippers solutions that keep them CTPAT-compliant from a warehousing and transloading perspective.

Sunset Transportation continues to innovate and adapt. Over the past three years, the company has collaborated with companies from Europe, Asia, and North America that are looking to establish new operations in Mexico. “Different industries, but all have the same goal: choose the best location within Mexico to manufacture a finished product or sub assembly that will be shipped into the United States,” Minarro says.

The Sunset team interacts with the customers from the planning stage onward and takes a holistic approach with every engagement.

“The deliverable at the end of the process is to provide suggestions on how to set up the logistics strategy, incorporating import and exports flows, technological requirements, and process automation,” Minarro says. “We listen to our customers and their needs, in addition to listening to the market, so we can provide the best, most efficient, and tailored solutions for our customers.”

One thing stayed the same: Alaska remains a broad region presenting an array of unique logistics challenges. “I like to say that if you can manage logistics to, from, and within Alaska, you can manage logistics anywhere in the world,” says Dr. Darren Prokop, professor emeritus of logistics in the College of Business and Public Policy at the University of Alaska Anchorage.

Resourceful and resilient logistics professionals are meeting Alaska’s challenges, handling logistics over the roughest terrain, and the state is significantly better for it. “Alaska’s socio-economic fabric is highly dependent on logistics,” Prokop says. “The largest state in the United States (more than double the size of Texas) is separated from the rest of civilization and surrounded by the vast Pacific and Arctic oceans and the Yukon wilderness.”

While it is one of the country’s least populous states, Alaska’s population is widely dispersed across an environment subject to earthquakes, tsunamis, volcano eruptions, blizzards, and floods. “On top of all that, Alaska’s transportation infrastructure is concentrated in the center of the state between Anchorage and Fairbanks,” says Prokop. Given the population concentration, the Port of Alaska has become the principal gateway for large-volume freight deliveries to those cities.

Alaska’s distinctive configuration means logistics professionals must know their way around and through the state’s demanding land and water obstacle course. “You can’t fake logistics,” Prokop says. “Either the shipment is on time, or it isn’t. This is especially crucial for Alaska.”

About 90% of Alaska’s inbound freight arrives by water. The Port of Alaska’s share of this serves about 85% of all Alaskans. “Importantly,” Prokop says, “of the amount that arrives in Anchorage, only half is for local residents.”

Navigated by specialists experienced in the logistics challenges of Alaska, freight makes its way to the state’s bustling cities as well as remote villages and towns. (The state’s name is derived from the Aleut word “Alyeska,” literally meaning “the object towards which the action of the sea is directed.”)

Feeding the Flow

The state’s own abundant natural resources are shipped throughout the world. For example, Alaska’s fisheries—the source of such delicacies as halibut and king crab—are in the world’s most treacherous waters.

Additionally, “Alaska’s oil helps power the nation and is transported from one end of the state to the other by the 800-mile engineering marvel known as the Trans-Alaska Pipeline System (TAPS),” notes Prokop.

The state’s impressive logistics infrastructure includes highly valuable assets such as Ted Stevens Anchorage International Airport, one of the top air cargo facilities in the world. The airport’s geographic advantage is that it is within 9.5 hours flying time to 90% of the industrialized world. Being at the center of the great circle route between U.S. and Asia markets, it is not surprising most cargo planes stop in Anchorage to refuel.

“Apart from this geographic advantage is the airport’s operational advantage,” Prokop adds. “Its special air cargo transfer rights are unique to the airport and these allow foreign planes to transfer their cargo between them. It is a variation of a form of trade liberalization known as cabotage and it makes a rare example of unilateral trade liberalization by the United States for the benefit of Asia-Pacific trade flows.”

Meeting All Tests

Span Alaska moves more than 400 million pounds of freight annually throughout Alaska, offering chill/freeze services for perishables, food and beverage, and medical/pharmaceutical shipments.

The transportation and logistics infrastructure of Alaska has been tested over time and terrain, and through all types of severe weather, yet it remains resilient and able to serve all Alaskans, no matter how central or remote they are.

“The transportation infrastructure is one of the most resilient—and geographically dispersed—in the country,” says Michael Johnson, president of Span Alaska, which connects Alaska to the rest of the United States, and the world, with a weather-tested transportation network over land, sea, and air.

“Due to Alaska’s size, its weather, and lack of road infrastructure, delivering products can be complicated and challenging,” says Johnson.

But as the state’s largest freight forwarding company transporting freight and shipments to, from, and around Alaska, Span Alaska meets the challenges and ships more than 400 million pounds of freight annually throughout the state. The company utilizes ocean container service, barges, and trucks ranging from semi-trailers to step vans, flatbeds, and air and rail service to deliver to its customers.

Span Alaska, launched in 1978, opened the largest DC and service center of its kind in the state in Anchorage in 2019. The facility has 88 dock doors, a lay-down area for breakbulk cargo, and an in-house maintenance shop.

Expanding Services

In 2023, the company opened a new and expanded service center in Fairbanks, Alaska’s second-largest city. Span Alaska has additional service centers in Wasilla, Juneau, Soldotna/Kenai (in the Kenai Peninsula Borough), and Kodiak.

Span Alaska direct loads containers to service centers from its consolidation center in Auburn, Washington, near the Port of Tacoma. “That means customers’ shipments are loaded into shipping containers destined directly for one of the six service centers or the Anchorage air cargo facility,” Johnson explains. “This eliminates rehandling and costly delays. The shipments are not rehandled or devanned and reloaded along the way.”

Span Alaska offers expanded chill/freeze services for perishables, food and beverage, and medical/pharmaceutical shipments.

The company offers Keep From Freezing (KFF) options, usually from late September to April, for products that would be compromised or damaged if they freeze in transit.

Johnson is enthusiastic about Alaska and Span Alaska’s place in it. “Alaskans live here because they love the natural beauty, the wilderness steps from their door, access to fishing, hunting, and hiking, and the pristine environment,” he says. “Whether they are in metro cities or a remote bush village, they need reliable availability of food, clothing, and everything else for everyday life. Because of the commitment and service of Span Alaska and other logistics providers, Alaskans can enjoy the same access to goods and services that those in the Lower 48 have.”

Span Alaska continues to invest in technology and provides instant tracking and delivery confirmations. “Shipment visibility is vital for customers, especially as their products can be shipped via several modes—ocean, road, rail, and air,” he adds. Span Alaska offers delivery throughout Alaska, from metro Anchorage to the North Slope to remote villages in the bush.

Customized solutions are available for the commercial and industrial sectors, including oil and gas, construction, food and beverage, and retail/tourism.

Making Tracks

Alaska Railroad provides critical freight service, bringing freight from the lower 48 states through its gateway of Seattle, Washington, and into the port of Whittier, Alaska.

Contributing mightily to the transportation and logistic solutions of Alaska is the Alaska Railroad, which provides passenger service to most of the population with routes traveling some 500 miles between Seward, Anchorage, and Fairbanks.

The railroad also provides critical freight service, bringing freight from the lower 48 states through its gateway of Seattle, Washington, and into the port of Whittier, Alaska.

“We operate two distinctive services to meet the needs of the people and business in Alaska—rail freight and passenger service,” explains Dale Wade, the railroad’s vice president, marketing and customer services. While best known for its passenger service, Alaska Railroad freight is the larger of the railroad’s two business segments.

“The Alaska Rail Marine Barge, operated under a long-term contract to the Alaska Railroad, connects the lower 48 states to Alaska via a port operation just a stone’s throw from downtown Seattle on Harbor Island,” Wade says. “There, rail carloads that originated deep in Texas and Mexico move seamlessly without transloading onto a rail barge for the seven-day trip to Whittier, a few miles from Anchorage. This is the most cost-effective way to move container and full railcars to and from Alaska.”

Maintaining a Critical Energy Link

The railroad is mindful of its responsibility to the critical chain of the energy and mining industries as well as to consumers in the expansive commerce center of Alaska, says Wade.

While the challenges presented by the state’s terrain are numerous—including extreme cold, flooding, rockslides, and avalanches—Wade says there are no obstacles the railroad cannot overcome.

“Because we are remote, we don’t rely on third-party services that are available to railroads in the lower 48 states,” he explains. “If it happens, we handle it. This requires us to be prepared, well-planned, and extremely resourceful.”

A common misconception is that the Alaska Railroad is connected to the lower 48 states via a railroad in Canada. “While there have been several big resource projects that have looked at building a connection between the Alaska Railroad and the Canadian National Railway, none has taken the process beyond the planning phase,” he says. “The barge connection between Harbor Island, Washington, and Whittier, Alaska, continues to be the only method to get railcars to south central Alaska from the lower 48.”

Unless delayed by weather or other circumstances, the barge sails weekly on Wednesday and arrives in Whitter one week later. Each barge can carry 40-50 railcars.

Due to current demand, the Alaska Railroad has contracted an extra sailing every Friday in addition to the weekly scheduled sailings.

The future of the Alaska Railroad promises to be as rewarding as its past. “We just completed our centennial year in 2023,” Wade says. “The first 100 years were both challenging and exciting. The next 100 years will bring so many more opportunities for us. Alaska is rich in culture and resources but has limited infrastructure. No doubt our next chapter will be about expanding the system in a responsible and sustainable way to meet market demands as they arise.”

Flying High

Alaska Air Cargo serves 20 communities across Alaska and is set to launch a dedicated freighter service between Anchorage and Los Angeles, through Seattle, in spring 2024.

Alaska’s air carrier infrastructure is vital so that both passengers and essential cargo can be transported into remote communities. Playing a crucial role in transporting people, products, and supplies to and from Alaska is Alaska Airlines, the fifth-largest airline in North America when measured by scheduled passengers carried. Through its airline partners and the oneworld global alliance, Alaska Airlines passengers can travel to more than 1,000 destinations on more than 20 airlines.

Headquartered in SeaTac, Washington, just outside Seattle, Alaska Airlines is now the only passenger airline in the United States with dedicated cargo planes, and it connects with large international and integrated carriers to carry ecommerce goods and other critical supplies into and around Alaska. Alaska Air Cargo is the largest scheduled cargo carrier in the Frontier State.

Alaska Air Cargo’s growing freighter fleet will expand its reach to Los Angeles (LAX) in spring 2024—the first time its dedicated freighters, which serve 20 communities across the state of Alaska, will connect to cities beyond Seattle (SEA) in the lower 48.

The two newest 737-800BCF freighters can carry 10,000 more pounds than the airlines’ three 737-700 freighters. Many of the groceries, household goods, and essential medicine shipping into the state of Alaska come from Southern California, and this new freighter route will streamline that supply chain, says Adam Drouhard, managing director for Alaska Air Cargo.

The bigger freighters will also be in full service in time for the height of the salmon fishing season, allowing fresh sustainable sockeye from Bristol Bay and other fisheries to reach markets across the lower 48 more quickly. “We are excited to build on our long history serving the state of Alaska and forge new connections between communities there and cities across the United States,” Drouhard says.

More freighters in the schedule serving the state of Alaska will also improve the reliability of that service. “Our markets in the state will get more dedicated service that’s not shared,” Drouhard says. “We’ll be able to spread that schedule across more aircraft.”

Bethel (BET), Juneau (JNU), and Sitka (SIT) will be among the first communities to benefit from the bigger freighters and more frequent service. The aircraft’s expanded range also will allow the cargo team to explore other new routes, such as a possible nonstop from King Salmon (AKN) to Seattle.

Prospects for continued growth are excellent, especially against the backdrop of the state’s overall logistics strengths. For example, Alaska Air Cargo’s services are facilitated by Ted Stevens Anchorage International Airport, which has long played an integral role in the growth of Anchorage and the state.

The airport’s geographic location provides unlimited potential for moving goods, services, and infrastructure to be used in the global marketplace. For Alaska Airlines, that means easier connections from rural Alaska to global markets, which is particularly important for the efficient and fast export of wild Alaskan seafood. There is potential for ecommerce and other goods coming into the state to be transported around Alaska more quickly as well, which is very good news for communities that are not on the road system, allowing faster delivery of goods around the state.

Seeing Possibilities for Innovation

Where others may see only roadblocks, the logistics specialists at Lynden—a family of companies providing transportation and logistics solutions in Alaska, as well as Canada, the Pacific Northwest, Hawaii, and around the world—see opportunities to create innovative solutions.

“Alaska logistics are different, but not insurmountable,” says Alex McKallor, Lynden’s executive vice president and COO.
Offsetting the state’s logistics challenges is its strategic location, offering literal and figurative “top-of-the-world” access to Asian, European, and North American markets.

“The strategic location of Alaska is very advantageous,” McKallor says, emphasizing both its air cargo assets and its “incredible” coastline.

“Alaska has over 6,000 miles of coastline, and if you count the islands, almost 50,000 miles of actual coastline,” he notes. Some 2,670 named islands help contribute to Alaska’s rank as the state with the largest land mass in the United States.

“Alaska’s coastline’s proximity to its natural resources is a tremendous advantage,” McKallor says. “Our business model is built around filling the gaps in infrastructure, which reaches only a small fraction of the vast area of Alaska.

“We build our business strategy around filling those gaps in the best way possible. Where you don’t see a road, you see a marine, air, or another solution. We use interesting things like PistenBully snowcats (used in heavy snow and ice), hovercrafts, and Hercules aircraft to access areas unreachable by other methods.”

Lynden’s experience in Alaska is applicable in other hard-to-navigate places too. “Some of these issues are not necessarily unique to Alaska,” McKallor says. “What makes us especially effective is that as an asset-operating transportation company we know the pitfalls and risks of proposed logistical plans. What may be theoretically possible may not be practically possible and have a high risk of failure. If a certain part of the plan for a logistics project doesn’t pan out it could have catastrophic effects on the success of the project.”

In those instances, Lynden has the practical knowledge and ability to turn to alternative methods. “That’s where we add a lot of value when it comes to advice and helping customers,” he says.

Looming energy and mining projects bode well for Alaska’s continued strategic importance throughout the world. “We’re bullish on Alaska,” he says. “Alaska is very well positioned to be a critical natural resource supplier, especially with the focus on trying to develop secure supply chains for strategic minerals.”

He refers to the current era as “the century of the Pacific,” and he believes the next five years will see greater investment in the energy and mining sectors. “Our focus is to support these projects wherever we can.”

“Large projects with large swings in volume can be disruptive to existing supply chains,” McKallor says. “The most important thing to Lynden is to make sure we can continue to serve our existing customers with reliable service.”

Fortifying the Future

Alaska’s presence as an American state gives the country an enhanced definition. “Alaska makes the United States an Arctic nation,” notes Prokop. “As such, it is on the frontier of the wealth of resources that are being discovered in the Arctic Ocean. In the decades ahead, Alaska will also play a major role in opening the Arctic to transportation via the Northwest Passage and the Northern Sea Route.”

He is proud the University of Alaska Anchorage contributes to the state’s assets through its logistics and supply chain management programs.

“We teach students how to plan well and use their imagination,” he says. “It took a lot of imagination and daring to build Alaska into the logistics powerhouse it is today.”

Alaska on Top of the World?

Myths about Alaska are as vast and meandering as the area itself. Much of the confusion arises from the state’s appearance on a typical map of the world, says Dr. Darren Prokop, professor emeritus of logistics in the College of Business and Public Policy at the University of Alaska Anchorage.

Where is Alaska? Most people would likely answer the question after conjuring up a map in their heads, Prokop says. They might say: “Alaska is at the top of the world.”

Well, everyone does say that, even many who regularly write about the state. Not so?

“Well, they would be right—but only to the extent that a flat earth wall map is an accurate depiction of a round, three-dimensional earth,” Prokop says. “With apologies to the Flat Earth Society, such maps are not accurate. There is no ‘top’ of the world. In fact, Alaska is equidistant between the major population centers of Far East Asia and the Lower 48 if one travels the shortest distance between them. But one could never tell that by looking at a wall map.”

In this case, the reality is better than the myth.

“The consequence of these ‘great circle routes’—the shortest distance between two points on a sphere—is that all airplanes using them would fly over Alaska,” Prokop says. “Also, ocean vessels traveling from Asian ports to those along the U.S. West Coast use shipping lanes that follow great circle routes which are not too far off Alaska’s shores.”

So, perhaps surprising to those who are not logisticians, a more accurate answer to the question is: “Alaska is at the center of world trade.”

With a high level of complexity for product assembly and additional requirements beyond the industry standard for white glove service, this company and Hub Group started a business relationship in 2009 that was focused on providing consistent, nationwide white glove service for an affordable price and within a reasonable transit time.

The Solution: Multiple Methods

Hub Group used multiple methods of training materials including videos, conference calls, work instructions, on‐site visits, and other reference guides to prepare the last mile terminal network for a zero‐defect, staged onboarding of the business. With such a successful implementation, the customer continued to increase the percentage of markets that Hub Group serviced for them until Hub Group became their primary last mile carrier, acquiring 95% of their white glove business.

Hub Group has also ensured continuous improvement and service consistency. As new terminals are brought into the network, Hub Group reviews all customer training materials in‐depth with the delivery teams and terminal management. Internal meetings are held to keep open communication flow on opportunities and trends as well as set assignments and progress goals within both companies to enhance the customer experience.

The Results

Throughout the relationship, the furniture manufacturer has set and measured goals that align with their business focus, and Hub Group has continued to develop strategies around service improvements within the areas that Hub Group can impact. In particular, the company surveys all their white glove delivery recipients measuring overall customer satisfaction with the service provided as well as ratings in the following categories:

1. Ease of scheduling.

2. Driver product familiarity, professionalism, and performance.

3. Individual service requirements–assembly completion, removal of stickers, performance of the product wipe down, product manual distribution to the customer, etc.

Over the years of survey scores, Hub Group has averaged 97% overall satisfaction rating, and the individual performance metrics are used on a weekly basis as training opportunities for specific driver teams and to identify service trends for high- and low‐performing terminals.

In addition to the company’s service measurements, Hub Group provides a monthly scorecard to track KPIs. The Defect‐Free Ratio (shipments without a transportation service defect notation) is 97%, and Hub Group OSD for the account is <2%. The average last mile transit time is 3.5 days with an average of .65 days from the order arriving to the Hub Group terminal to the first call placed to the customer for scheduling.

The clear outline of expectations and goals in addition to the commitment from both companies to provide the best possible customer experience has proven to create a long‐term, successful business relationship. Open communication and alignment of delivery strategies with the customer vision will continue to be the cornerstones of the value‐added services Hub Group provides to ensure customer satisfaction.

To learn more:
info@hubgroup.com
800-377-5833
hubgroup.com

The Role of Equipment

When it comes to moving over-dimensional cargo, the importance of equipment cannot be understated. Find a carrier with a range of specialized trailers designed to transport massive structures with unconventional shapes or configurations.

Multi-axle trailers evenly distribute weight for stability, making them ideal for heavy haulage. They utilize specific axle configurations to spread cargo weight and comply with road and bridge capacity limits. Double drop trailers, on the other hand, feature a single lower section with raised front and rear sections, providing stability for tall products.

Work with the carrier or freight agent to find the right piece of equipment for the freight.

Carrier Commitment

Selecting the right carrier for the shipment is not as simple as finding a carrier with a truck and specialized trailer for the lowest cost; it’s about aligning with transportation professionals who have a vested interest in and a proven track record of safely and reliably moving cargo that’s too tall, wide, or heavy for standard shipping.

Additionally, don’t discount the value of experience. Carriers with truck operators who have years of experience securing and transporting over-dimensional freight bring an irreplaceable wealth of knowledge. The cargo is in adept hands from pickup to delivery.

Put simply, reputable heavy/specialized carriers emphasize safety, thereby reducing the likelihood that accidents or freight damage may happen. Protect the freight by selecting a carrier with decades of proven success.

The Right Network

When choosing a heavy/specialized carrier, it’s crucial to assess if the carrier has a team experienced in moving the unique cargo at hand. For example, Landstar excels with its comprehensive network of skilled owner-operators and agents focused on customer service and adaptability, in addition to its array of equipment. Landstar’s capabilities place it as the largest, and one of the safest, heavy/specialized carriers in North America.

Obtaining the appropriate permits and planning correct routes are essential for transporting heavy/specialized loads due to varying regulations on size across states, counties, and cities. Some locations may require a police escort, while others do not.

Landstar has staff members who work with freight agents and owner-operators on planning routes and pulling the correct permits and escorts for each load. Thus, customers feel confident that their freight will not only be transported correctly, but that they have access to a full network of solution-oriented individuals in one place.

When it comes to moving freight that is over-dimensional or overweight requiring specialized moves and excellence in every shipment, trust leading carriers with the right equipment, the right experience, and the right commitment to customized solutions.

Companies with extensive field operations are seeing the value of mobile technology for enterprise-wide use. In Zebra’s Future of Field Operations Vision Study, 97% of companies surveyed expect to expand mobile technology for enterprise use to replace paper-based systems.

This explosion in adoption was made possible by the spread of 4G/5G service and other emerging technologies, with 60% of companies embracing a mobile-first strategy to integrate and scale technology across the enterprise.

The interest in automating many transportation and logistics functions is driven by macro-level challenges facing many companies. Making each employee more effective with mobile technology relieves some of the pressure on staffing operations. Rising labor costs improve the ROI narrative for investment in technology.

At the same time, the demands on transportation and logistics companies are higher than ever. Operational visibility has never been more critical, with an unrelenting need to know where assets are located from the warehouse through delivery and back, with reverse logistics.

Each aspect of the operation is under pressure to improve process efficiency. Speed and timeliness are critical to creating fluid operations. Visibility improves asset utilization to support efficient drop-and-hook operations and helps avoid costly detention fees.

Transportation and Logistics Automation Solutions

Automation is a critical piece of the solution. With rugged mobile devices in the hands of drivers and the cab, paperwork becomes a thing of the past. Real-time visibility of information transforms operations from reactive to proactive, with insights into drivers, vehicles, and customers. Improved management drives efficiency and profitability while overcoming the challenging environment. Enterprise devices eliminate the complexity and risk of managing consumer-level personal devices.

By embracing automation and mobile devices, transportation and logistics managers have the real-time information they need to reduce the cost of delivery operations, get the most value out of assets and personnel, and improve the quality and consistency of their customer service.

5 WORKFLOWS TO AUTOMATE

Rugged mobile devices close the gap between front-line work and the back office, making supporting field workers easier and giving managers access to real-time information.

• Last-Mile Delivery. Improve visibility from pick-up to delivery to ensure the right package gets to the right person at the right time without errors.
• Proof of Delivery (POD). Create accurate chain of custody during pick-up and delivery with electronic signature capture and mobile receipts. Improve financial results with same-day invoicing and reduce damage claims with photographic proof of condition at delivery.
• Electronic Logging Device (ELD). Replace paper with real-time processes throughout the delivery network to reduce costs and improve service quality. Because the devices track mileage and hours logged, fleet managers automatically collect regulatory information, such as hours of service and fuel tax data.
• Routing. Improve dispatch and routing efficiencies with immediate visibility into vehicle location and routing within the context of network-wide operations. The stream of real-time location information allows dispatchers to better manage routes and ensure drivers arrive on time, with the least miles traveled.
• Fleet Management. Automate proactive maintenance and compliance checks for all assets. Improve fleet uptime with preventive services that keep trucks on the road.

Whether it is for Georgia’s favorable cost of living, business-friendly policies, superior workforce, educational assets, or solid air, land, and sea resources, logistics and other companies consistently choose Georgia because they know they can rely on the state’s pro-business culture and infrastructure to sustain growth.

“Successive governors, local and community elected leadership, and the Georgia General Assembly have consistently supported our partnership approach to economic development, allowing our state and local teams to be responsive to business,” says Pat Wilson, commissioner of the Georgia Department of Economic Development.

“Our university system and technical college system of Georgia have been ahead of the curve in working with us to prepare Georgians for the workforce needs of tomorrow, giving Georgia a competitive advantage,” Wilson adds.

Reflecting this growth trajectory, Gov. Brian Kemp announced in February 2024 that Doowon Climate Control America, a South Korea-based auto parts manufacturer and supplier, will invest more than $30 million in a new manufacturing facility in Metter, in eastern Georgia. The company will be a key supplier for Kia Georgia and Hyundai Motor Group.

“Georgia’s growth as a national leader in auto manufacturing continues to pay dividends for communities in all four corners of Georgia,” Kemp said.

Georgia’s vast business network goes well beyond automaking, embracing everything from tourism to health care. The support of the state’s logistics providers is as strong as the network they serve.

Technology and Workforce Are Major Draws

For Duane Kalinowski, founder, owner, and CEO of All Points, a multi-faceted 3PL based in Atlanta, the greatest logistics asset of the state he adopted as his home 30 years ago is the quality of its workforce—particularly those who work for All Points. “We have an unbelievable workforce here,” he says.

Kalinowski opened the company with a mattress—he lived inside his warehouse—and a fridge, a TV, his dog Baxter, and an entrepreneurial spirit on June 1, 1995. All Points has now grown into an industry leader in fulfillment and distribution, print and promotional product management, ecommerce, direct response project management, retail display production, and 3PL services.

Several members of his executive team began with the company more than two decades ago—Controller Sandra Duncan, for example, and IT Director Adam Zawacki, a Georgia Tech industrial engineer grad who spearheads constant evaluations of fulfillment processes, looking for ways to improve efficiencies and reduce costs.

Kalinowski puts a high premium on All Points’ tech stack, believing it is a vital key to logistics success. “If you’ve been in business 30 years,” he says, “you have to stay on the cutting edge of technology—or you’re not going to be in business.”

Those two keys—technology and workforce—make Georgia an ideal logistics home, Kalinowski believes, citing the outstanding logistics degree programs offered by the state’s colleges and universities. All Points hires many graduates of Georgia Tech, “which is in All Points’ backyard,” he says.

Building on Logistics Advantages

All Points provides fulfillment and distribution, print and promotional product management, ecommerce, direct response project management, retail display production, and 3PL services.

“Think about both the culture and tremendous education resources for logistics in Georgia,” Kalinowski says. “Not only that, think of all the trade shows and economic forums, the Atlanta Chamber of Commerce and how they all work in unison for the logistics hub that Atlanta has become.

“These are efforts that start at the governor’s level and work their way down to the local level,” he adds. “It’s no mistake that Atlanta has the largest airport, the most trafficked in the world, and that UPS is located here.”

Additionally, he says, “Georgia’s miles and miles of actual freeway help us with time to market. All these things—from the support of the governor’s office to the logistics infrastructure and economic forums—work together to perpetuate Georgia’s logistics advantage. It has taken off to the point it’s hard for other regions to catch up to what we have here.”

Since he landed All Points’ first major contract with Coca-Cola shortly after he opened the company—leading to a contract to distribute some $80-to-$100 million of Olympic pins for the 1996 Summer Olympic games held in Atlanta—Kalinowski has capitalized on Georgia’s rich logistics resources to achieve remarkable growth.

He believes the strength of the Georgia logistics environment—along with treating his team members as partners in the business—will keep the company thriving long into the future.

“When I meet with prospective companies, I sell the culture of our workforce and our ability to solve problems,” Kalinowski says. “Atlanta has such a great logistics network. It really gives us an edge, being here in Atlanta. There’s a lot of opportunity here.”

Focusing On Ports and Progress

Georgia’s logistics assets acted quickly and effectively to meet the pandemic-related challenges of all types of infrastructure faced with surging consumer demand. Case in point: Georgia Ports.

Aside from the period affected by the pandemic, 2023 was the best calendar year on record for containerized trade for Georgia Ports, according to the Georgia Ports Authority (GPA), which oversees the state’s two deep-water ports and three inland terminals. “Georgia Ports’ demand for containerized imports normalized since the end of the pandemic,” says GPA President and CEO Griff Lynch, who adds that GPA is using this time to invest in capacity for future needs.

“GPA is committed to investing $4.2 billion in the next 10 years,” Lynch says. “With the new year, we are beginning to see renewed strength in container volumes, which should result in more favorable comparisons moving forward the next six months.”

In terms of roll-on/roll-off (Ro/Ro) cargo, the Port of Brunswick handled a record 775,565 units of autos and machinery in calendar year 2023, an increase of 15.6% over the previous year. At its current rate of growth, the Port of Brunswick is poised to become the nation’s busiest gateway for Ro/Ro cargo.

Expanding both trade and capability at the flagship ports of Savannah and Brunswick is part of a two-pillar strategy at GPA, with Savannah focused on containers and Brunswick focused on Ro/Ro trade. Both pillars of GPA’s business will be positively impacted by the growth of manufacturing in Georgia, such as the new Hyundai Meta Plant now under construction in Elabell, on the outskirts of Savannah.

Boosting Capacity

Because the threat of supply chain disruption is a constant, GPA’s infrastructure investment philosophy is to have 20% more capacity than the current cargo demand, thus enabling its terminals to better absorb sudden influxes, Lynch says.

Capacity-building projects include Garden City Terminal West at the Port of Savannah, which will add 100 acres and 1 million TEUs of annual capacity adjacent to Garden City Terminal proper. Now 70% complete, the yard will offer a new, long-term storage option for port customers to help them flex to supply chain demands.

GPA also is expanding its inland port offerings. Along with the existing Appalachian Regional Port in Northwest Georgia, GPA is building the Blue Ridge Connector rail terminal near Gainesville, Georgia. Additionally, North Carolina importers and exporters can tap into a faster supply chain through a direct rail connection between Savannah and Rocky Mount, North Carolina, via the CSX Carolina Connector (CCX) intermodal terminal. Supporting GPA’s intermodal cargo expansion is the Mason Mega Rail Terminal in Savannah, a foundational gateway terminal component.

Lynch credits state infrastructure improvements for making the ports’ growth possible. “GPA has been able to add capacity because of unmatched room for expansion on the 1,500-acre Garden City Terminal in Savannah and the 1,700-acre Colonel’s Island Ro/Ro Terminal at the Port of Brunswick,” he says.

“GPA has strong partners in the Georgia Department of Transportation and the Georgia Department of Economic Development in terms of building a robust statewide freight transportation system, and attracting companies to build or expand in Georgia,” Lynch adds. “Both help to drive business through Georgia Ports. Georgia is a truly integrated state when it comes to attracting and keeping business.”

Providing Knowledge and Power

Prominent among the vast array of Georgia’s unique logistics resources is SMC³, a one-stop knowledge hub for everything less-than-truckload (LTL). Shippers, carriers, logistics service and technology providers rely on SMC³ to translate intricate LTL transportation pricing and transit detail into data-centric solutions, spanning the entire shipment life cycle.

A trusted industry partner for more than 88 years, SMC³ is an established thought leader, hosting premier supply chain conferences and educational events across North America.

“Our status as a trade association provides close connections to all less-than-truckload carriers across North America,” says Brian Thompson, the organization’s chief commercial officer. “SMC³ utilizes our proprietary technology infrastructure to connect asset-based providers with their customers, shippers, and logistics service providers, with high-speed connectivity around the clock.”

Leading the LTL Industry

Based in the master-planned community of Peachtree City, just south of Atlanta, SMC³ is at the center of the $50-billion LTL industry, managing more than 4 billion pricing and transit transactions per month. To help accomplish its goals, the organization accesses the knowledge and power of the state’s leading logistics innovators and thinkers.

For example, SMC³ partnered with logistics professor Dr. Karl Manrodt at Georgia College & State University to develop and launch a new online educational program focused on the LTL industry.

“The educational program is a self-paced, online program leveraged by some of the largest logistics providers across the country,” Thompson explains. “So many new people have entered the industry in the past four years that educational programs are imperative to prepare them for these careers.”

The infrastructure—from fiber cable to roads and bridges to the busiest international airport in the country—all enable SMC³ to be effective in reaching its audience across the country, he adds.

Post pandemic, SMC³ has shifted from requiring all employees to work from the office to allowing them to work either in the office or remotely. This policy has allowed SMC³ to attract and retain top talent from across the state and the country, Thompson says.

SMC³ has greatly increased the use of videoconferencing and online media in its new educational programs for the freight industry. Additionally, it hosts monthly hybrid learning programs with panels of guest speakers discussing critical issues facing the freight industry and solutions to those issues.

SMC³ now offers Dynamic PriceBuilder®, a new application that lets carriers develop rates dynamically and enables them to make better pricing decisions. Through the tool, carriers can manage yield versus volume with on-demand control pricing and access levers, including location, weight, density, day of the week, and calendar date.

“With this dynamic solution, carriers immediately feel the impact of enhanced visibility into load-level costs, pricing, and profitability paired with their custom business rules engine to provide the data needed to quickly offer customer-specific pricing on a shipment-by-shipment basis,” Thompson says.

SMC³ continues to develop integrations to connect shippers, logistics service providers, and their asset-based providers across the freight industry.

“There is a tremendous demand to digitally connect and leverage data to create automated solutions that result in savings and more effective management across the supply chain,” Thompson says. “SMC³ is the premier provider of API and EDI integrations for the less-than-truckload industry.”

Recruiting the Best

Atlanta Bonded Warehouse is a leading provider of temperature-controlled 3PL warehousing, co-packaging, and LTL/TL transportation services in the Southeast.

For Atlanta Bonded Warehouse (ABW), the Southeast’s leading provider of temperature-controlled 3PL warehousing, co-packaging, and LTL/TL transportation services, the new year has brought about a heightened focus on recruiting and hiring the best of the best among Georgia’s superior logistics workforce.

Hal Justice, ABW’s vice president of sales and operations, says this focus means finding new ways to attract a new generation of technology-savvy employees.

“Our wage and benefit packages are exceptionally competitive for our industry and for the markets in which we have operations,” he says. “But today we are recruiting a different generation of 18-to-26-year-olds who do not respond as well to the recruiting efforts that have been historically successful.”

Both the demands of the industry and the skills and expectations of potential employees are putting a premium on applications of technology.

Enhancing Technology

“We’re enhancing our technology beyond just pure materials-handling movement and engaging automation where it makes sense and is cost-effective,” Justice says. “It’s not just moving pallets. Paying people for hours to move pallets from one end of the warehouse to another does not add value to our business process, and does not develop the skills our employees want or need. It’s not a good use of resources.”

Such tasks are not especially attractive to upward-bound workers either. Having almost halved the progression from starting wages to mature wages was helpful but still not enough.

ABW is aggressively recruiting online for new employees for positions in warehousing, transportation, and co-packaging. The growth in the company’s business means opportunities for new employees and for promotion for existing employees.

“We get lots of online inquiries every day,” Justice says. “We get from four to six inquiries every day regarding employment. When you think 20 a week or 1,000 a year is pretty good, you need to realize this is only the top of the funnel. Successfully recruiting, training, onboarding, and ultimately retaining is a long way from the top of the funnel.”

ABW is considering hiring a full-time recruiter to enhance its efforts to keep its workforce on top. At the same time, the company continues to measure productivity through “engineered standards”—using technology to carefully measure workers’ time management. The combination of these efforts enables ABW to mitigate cost increases—and, as a result, its costs to customers.

Automation is not a panacea, Justice says. Equipment must be carefully selected to fit the application, then calibrated and continually monitored to make sure it is doing what you tasked it to do. “Quality and safety remain most important,” he says. “Nothing suffers.”

ABW pays keen attention to industry measurements of success. “We’re holding our own in the industry with KPIs (key performance indicators),” Justice says. “I would put our numbers up against any of our competitors and we have some great competition.

“We focus on being a high-performance, low-noise operator. We’re in the top 50 of U.S. 3PLs. Everyone says size has its advantages and we would agree,” he continues. “Smaller has its advantages. Our size makes us more agile. We can make decisions quicker, make changes to our technology quicker, and change mid-course a lot easier. We don’t have to go through management hierarchy for approvals. We make two calls, meet for five minutes, and just do it.”

All of this takes place in the environment of an extraordinarily business-friendly state. “Georgia has done an incredible job of making the state a preferred location for industry,” Justice says. “Georgia has done a solid job of attracting business. We’ve got a good workforce and we’re always attracting more manufacturing. More and more of our customers are looking at how they can manufacture or process their products here and not rely on someone 8,000 miles away and where it takes five or six weeks to get here on a container. The pandemic taught everybody the value of shortening their supply chains.”

Forging Ahead

Syfan Logistics Executive Vice President Steve Syfan (left) credits Gov. Brian Kemp (right) and others in state government for their ongoing support of business in Georgia.

Steve Syfan, executive vice president of Syfan Logistics, is equally bullish on both the field of logistics and the company’s Georgia home.

“Georgia is a very forward-thinking state,” says Syfan, whose company is located some 50 miles northeast of Atlanta in Gainesville, Georgia.

Syfan Logistics specializes in the transportation of refrigerated/frozen foods and manufactured automobile parts as well as the transportation of pharmaceutical products. The company moves many pharmaceuticals that have special temperature regulations and specifications.

The critical importance of the company’s specialized services was made manifest at the height of the pandemic, and Syfan says the business-friendly environment of the Peach State was especially helpful during that challenging time.

“Georgia did not shut down like some other states did,” Syfan says.

He credits Gov. Brian Kemp and others in state government for their ongoing support of business. For 10 years in a row, Georgia has been recognized as the country’s best state for business.

Syfan Logistics, in turn, invests heavily in the future of Georgia logistics. Steve’s father and company founder Jim Syfan serves as a member of the University System of Georgia’s Board of Regents.

The company has established internship programs with several of the state’s leading colleges and universities, including the University of North Georgia, North Georgia Technical College, Georgia Southern, and University of Georgia. The company also works with Appalachian State University in North Carolina and the University of Tennessee.

“The majority of the population doesn’t even know this industry exists, except that they see the trucks on the road,” Syfan says, adding that he believes the next generation should be educated on how logistics represents a rewarding career path with rich opportunities for growth. Syfan Logistics offers a mentorship program and currently has one dozen employees in its training department.

Nurturing Entrepreneurs

Syfan is proud that as many as 17 other logistics companies have been spawned by individuals who began their careers at Syfan Logistics. “There’s enough for everybody,” he says, “and they make us better.”

He points out that his father was an entrepreneur, and the company encourages individual success. “We don’t have non-competes; I don’t believe in them,” Syfan says. “It would be wrong to say you can’t better yourself if this is what you believe you need to do.”

Another expression of the company’s culture is the fact that employees are not described as working “for” the company but rather “with.”

“It’s just a word but it’s a big word for us,” Syfan says. “We work with each other.”

It all goes back to the code his father put in place when the company was established. “My dad said back in 1984, our number-one principle is we’re going to do the right thing and we’re going to do it every time. And because we’re human, if we don’t do the right thing, we’re going to make it right.

“We do that internally and we do it externally. That’s always our goal,” Syfan adds.

Syfan believes a persistent challenge for logistics and other industries is the need for tort reform, and once again he is buoyed by the forward thinking of Georgia’s state officials.

“I’m very encouraged by what our legislators are doing,” he says. He is optimistic that “substantive decisions” are being formulated to further help Georgia continue to compete and grow.

Room to Grow and Flourish

Savannah-based JIT Warehousing & Logistics delivers just-in-time service with responsiveness and a personal touch.

Asked for her perspective on the most important assets of Georgia that help qualify the region as ideal for logistics, Anna Lockwood, vice president of Savannah-based JIT Warehousing & Logistics, doesn’t hesitate.

“A large port with steady growth is essential,” she says. “And so is having lots of options to move the cargo and containers from the port, particularly rail. That’s important too, as well as having ample warehouse space.

“Fortunately, we have all of that and more in Georgia,” she adds. “Our warehouse space is constantly expanding to meet ever-increasing demand.”

Evie Goldberg-Davis, JIT’s executive vice president, agrees. “Having the space geographically to grow is vital,” she says. “And not just the Georgia Ports Authority, but private terminals and warehouses in Savannah and throughout the state; developing inland ports and expanding the rail infrastructure and roadways connecting the Savannah terminal hub to the entire region.”

Ben Goldberg, the company’s president, adds this key ingredient to the region’s success: “Rapid expansion of manufacturers building plants in Georgia.”

In other words, it’s all about growth. And when it comes to logistics, growth not only defines Georgia in general but JIT specifically.

A family business, JIT was founded more than three decades ago by Ben Goldberg with the idea that companies in the Southeast, particularly those that receive seaborne products via the Port of Savannah, need world-class logistics support.

The company has five locations, all of which are within 3.5 miles of the Savannah port’s Garden City Terminal and one of which is within a half mile of the port’s Garden City Terminal.

Providing Responsive and Personalized Customer Service

As the company’s name suggests, JIT’s mission is to deliver just-in-time service to its clients. It accomplishes that mission by having big-company capabilities while providing small-company responsiveness.
Its experience, family ownership, and flexibility set it apart. “We’re big enough to support some of the world’s largest companies, and small enough to give small and mid-sized companies the very best in personalized customer service,” Goldberg says.

Adding greener low-emission trucks (CNG trucks) to the company’s asset fleet and building rail capacity are examples of JIT’s forward-thinking decision-making that enables the company to keep pace with the growth of Georgia itself.

A new location with Norfolk Southern and JIT’s expanded heavy-haul/cargo fleet to accommodate new facilities and plants being built in the region further solidify the company’s standing as a star in the logistics constellation of Georgia.

Establishing A Solid Foundation

For more than a century, Georgia has fostered healthy industry practices, encouraged collaboration and innovation, and positioned itself as a leader in developing and harnessing emerging technologies, including for the evolving automotive and mobility industry.

As the electric vehicle market continues to grow, for example, Georgia has pursued the entire supply chain, creating more than $25.7 billion in investments and 30,200 jobs since 2018.

Other industries thrive as well. For example, Gov. Kemp recently announced Gerresheimer, a manufacturer for the pharma and life science industry, will invest more than $88 million in expanding its manufacturing operations in Peachtree City in the southern Atlanta metropolitan area. Dusseldorf-based Gerresheimer currently supports more than 260 jobs in Georgia, and its existing manufacturing facility will support an additional 180 jobs with operations beginning in April 2024.

“Employers from across the globe can find a skilled workforce here that we continuously invest in through innovative programs like the GEORGIA MATCH Direct College Admissions Initiative,” Kemp said.

The program, officially launched in 2023, is intended to make higher education more accessible to Georgia’s youth, and it helps pave the way for a new generation to continue Georgia’s leadership in logistics.
The state’s pursuit of this type of leadership in logistics, together with its other assets, continues to successfully attract business and drive growth.

Georgia Logistics: 7 Stunning Stats

Port of Brunswick (photo courtesy of the Georgia Ports Authority)

Across every category, Georgia’s advantages as a logistics hub can be quantified with eye-popping numbers. Here are a few:

1. Georgia has a labor force of 5.3 million, with an especially strong talent pool in transportation and material moving.

2. The state’s logistics sector is powered by more than 15,000 logistics establishments employing more than 181,000 people in direct logistics industry jobs.

3. The University System of Georgia is made up of 26 higher education institutions, of which 25 offer concentrations and degrees in logistics and supply chain.

4. Georgia has 327 public and private airports, including 105 public-use airports. Two international airports—Hartsfield-Jackson Atlanta and Savannah/Hilton Head—and nine of the top 10 cargo airlines in the world call Georgia home.

5. The state has 1,244 miles of interstate highways, 81,829 miles of country roads, 19,095 miles of state highways, and 13,731 miles of city streets.

6. With more than 4,600 miles of active rail lines, Georgia has the largest rail network in the Southeast. The railroad system in Georgia includes 28 freight railroads, including two Class I railroads—Norfolk Southern and CSX. Georgia provides direct rail access to the Mid-Atlantic, Northeast, and Midwest regions of the United States.

7. Georgia’s two deep-water ports in Savannah and Brunswick, together with inland terminals in Chatsworth, Bainbridge, and Columbus, are gateways to the world. Sitting on 85 acres at the Port of Savannah, Mason Mega Rail is the largest on-terminal intermodal facility in North America.

Sources: Georgia Department of Economic Development, Georgia Center of Innovation for Logistics, University System of Georgia, Georgia Department of Transportation, Electric Cities of Georgia (ECG) Office of Economic and Community Development, Georgia Ports Authority.

With planned and unplanned cargo that ranges from fashion to finished vehicles to delicate flowers and produce, Sea-Air Logistics provides savings in either lead time or cost. Companies can leverage Sea-Air as a primary mode for forecasted volume or cost-effectively meet an unexpected spike in demand.

Each Sea-Air shipment is pre-booked onto an ocean vessel, within dedicated containers that enjoy high priority for equipment and space.

During the sea transport stage, the shipment is assigned air freight space, ensuring it is uplifted without dwell time. Once the vessel reaches its hub destination, shipments are transloaded to an aircraft, typically within 8 to 12 hours.

“Even during COVID, the Sea-Air product maintained an on-time performance level of 95%.”

-Leo Qvarnström
Director, Sea-Air Logistics
and Air Sustainability,
North America
Kuehne+Nagel

Because Kuehne+Nagel works only with premium carriers and requires their adherence to stringent performance requirements, it can confidently forecast transit times. “Even during COVID, the Sea-Air product maintained an on-time performance level of 95%,” says Leo Qvarnström, Director, Sea-Air Logistics and Air Sustainability, North America with Kuehne+Nagel.

A cross-functional team within Kuehne+Nagel oversees each shipment. “One ‘control tower’ team handles the whole shipment from origin to destination and across modes, providing an integrated, controlled operation that’s also scalable,” says Robin Knopf, Global Head of Sea-Air Logistics with Kuehne+Nagel.

The experts on the Sea-Air team boast decades of experience and speak the language of both modes. “They are magicians,” Knopf says. They leverage their sea and air freight knowledge, using Kuehne+Nagel’s global network and the latest technology to predict movements and track shipments. Because the handling processes are so tightly managed, the damage rate on shipments is close to zero.

“One ‘control tower’ team handles the whole shipment from origin to destination and across modes, providing an integrated, controlled operation that’s also scalable.”

-Robin Knopf
Global Head,
Sea-Air Logistics
Kuehne+Nagel

The Sea-Air product often works in lanes with an imbalance of trade—that is, more cargo typically comes into a hub than exits it. These markets tend to experience less volatility than many other trade lanes, and the shipments capture capacity that would otherwise sit empty on a return flight, Qvarnström says.

Shippers of all sizes and verticals use the Sea-Air product to save time and money, and minimize carbon emissions, when compared to air freight alone.

Some also use the solution as a kind of mobile warehouse, avoiding the cost of warehousing freight while it’s in transit. Kuehne+Nagel’s Sea-Air Logistics also helps companies diversify their supply chain and logistics operations, boosting flexibility and resilience. It works year-round as a true alternative to other transport modes.

“That’s the beauty of the product; it’s something that everyone can take advantage of,” Qvarnström says.

Every year lately, “a big unknown” has impacted supply chains, says Leo Qvarnström, director, Sea-Air Logistics and air sustainability, North America with Kuehne+Nagel, a provider of logistics services. Recent examples include the war in Ukraine, the ecommerce boom, and the current conflict in the Red Sea.

The acronym VUCA, which has its roots in the military and stands for volatility, uncertainty, complexity, and ambiguity, is now being used to describe the world of commerce, says Tom Goldsby, executive director of the Global Supply Chain Institute at the University of Tennessee, Knoxville. Supply chain and logistics professionals can gain an edge by understanding the trends and shifts contributing to the current global logistics environment.

Geopolitical Upheaval

In addition to exacting a human cost, conflict impacts supply chain and logistics operations. For instance, Red Sea attacks are forcing more shipments around the horn of Africa, lengthening cycle times and driving up fuel costs and carbon emissions, says Ted Stank, co-executive director, with Tom Goldsby, of the Global Supply Chain Institute.

Between November 2023 and February 2024, container leasing rates on the China-to-U.S. trade route more than doubled, finds Container Xchange, an online container logistics platform.

Challenges in the Red Sea will even indirectly impact shippers whose cargo doesn’t travel this route, says Robin Knopf, global head of Sea-Air Logistics with Kuehne+Nagel. The reason? As carriers move to avoid the Red Sea, they create disruptions or container shortages along other routes, he adds.

Other trade lanes are also at risk, says the Boston Consulting Group (BCG). One is the Strait of Hormuz, which accounts for 20 to 30% of oil trade. If Iran is drawn into the conflict in the Middle East, vessels navigating this strait could be at risk.

Another lane, the Strait of Malaca, accounts for 30% of global trade. An ongoing dispute between China and several members of the Association of Southeast Asian Nations (ASEAN) over an area in the South China Sea may impact this strait, BCG says.

Along with rising transit costs, it’s likely that confirming bookings will be more difficult by summer 2024. “Companies will need to plan longer lead times for getting goods to their final destinations,” says Christa Pitts, co-CEO with The Lumistella Company, the firm behind Elf on the Shelf.

China Plus One

To offset rising labor and other costs in China, many companies are employing a “China + One” strategy. “Firms are reducing their concentration in China and adding capacity in Southeast Asia, India, and Mexico,” says Marc Gilbert, managing director and senior partner with BCG.

Countries in Southeast Asia, for instance, currently supply multiple regions of the world, including China and North America, Gilbert says. In India, leadership has taken steps to address corruption and enhanced the country’s ability to move goods around, he adds.

Nearshoring/Reshoring

More North American companies also are looking to locate operations closer to home. In early 2023, Mexico replaced China as the United States’ top trading partner, benefiting from its geographic proximity, strong manufacturing-based economy, skilled workers, and free-trade pacts, reports research firm MSCI.

Along with Mexico, all of Latin America offers strong potential for nearshoring, says Rick Jordon, senior managing director with FTI Consulting. Many companies will still need to rely on supply networks based in Asia. However, as Latin American companies implement new technology, it’s possible they’ll leapfrog ahead of their Asian counterparts.

Regionalization

A major gateway for global cargo shipments, the Oakland Seaport in Northern California serves a local market of more than 14.5 million consumers and 50% of the U.S. population by rail.

Interest in regional supply chains is growing. The idea is to “move away from thinking that we have one manufacturing hub for the whole world,” Stank says. Instead, companies can set up regional supply chains, which tend to be more agile, to support their major markets. If operations are disrupted in one area, other locations can compensate.

Artificial Intelligence

“The biggest impact to the global supply chain will continue to be the use of artificial intelligence (AI),” Pitts says. Among other benefits, AI allows supply chains to maximize efficiency in ways that hadn’t been possible previously, such as maximizing space utilization on a container or a pallet.

“AI allows companies to work smarter,” she adds.

Given ongoing disruptions, supply chain transparency and visibility to the sources of goods will factor in planning. “AI can enhance that power,” says Melinda McLaughlin, global head of research with logistics real estate company Prologis.

One company employing AI in the supply chain is Good360 is a nonprofit that distributes product donations through its network of 100,000+ vetted nonprofit partners.

The company is trying to use AI to help determine if it can efficiently move products where they’re needed after an event occurs, says CEO Romaine Seguin.

For example, Seguin has been working with a donor to determine how Good360 can help in areas impacted by wildfires. “We’re bringing in AI technology for mapping weather and identifying how much damage is in an area and what’s needed, such as water or hygiene products,” she says.

Cybersecurity

As supply chains digitalize, the risk of cyber attacks increases. “It’s the flip side of the digitalization and automation coin,” Stank says. Some chief information officers are even throttling back supply chain initiatives because of cybersecurity concerns, he adds.

A criminal may act as a carrier, broker, or even a customer to break into a system and then try to hijack freight or access customer or employee data. “Any system is open to attack,” warns Nathan Johnson, founder and CEO of transportation consultancy GLCS.

Sustainability

While it’s difficult to pin a single weather event on climate change, the drought at the Panama Canal is capturing the attention of supply chain experts. Drought cycles used to occur once every five years, but now are happening every three years, said Ricaurte Vásquez Morales, administrator of the Panama Canal, in a statement.

Another sign of the emphasis on sustainability is the European Commission’s Carbon Border Adjustment Mechanism. CBAM, which will be phased in between 2023 and 2026, is intended to fairly price the carbon emitted during the production of carbon intensive goods entering the EU.

CBAM will initially apply to some goods whose production is carbon intensive and at most risk of carbon leakage, such as cement, iron, and steel; additional goods will be added.

Navigating Evolving Global Logistics

As global logistics evolves, here’s how shippers can adjust.

Strengthen Agility
Resilience remains essential, but it doesn’t mean trying to create bulletproof supply chains. “There is no such thing as being bulletproof,” says Goldsby of the University of Tennessee. Instead, resilience should take the form of agility, or developing options before they’re needed. Plasticity, or the ability to make rapid structural changes, such as sourcing in new locations, is also necessary, he says.

Understand Geopolitics
Supply chain leaders today need to understand a range of subjects, including geopolitics, economics, and cybersecurity, Goldsby says. “They have to be global citizens and understand that what takes place in, say, Indonesia could very much influence their supply chains and business,” he adds.

Create a Task Force
More than three-quarters of respondents to BDO’s Global Risk Landscape 2023 indicated that the risk landscape is shaped more by connections between risks than individual risk factors. Addressing these connections requires a company-wide focus.

Assemble an enterprise-wide task force to take a control tower view of the supply chain, advises Tony Nuzio, founder and chief executive officer with ICC Logistics Services Inc. It should be cross-functional and include employees from all levels. Employees on the ground might be best suited to identify, for instance, suppliers that are critical to production, even if the company purchases relatively small amounts from them. Task force members can run scenarios and assess how prepared the company is for them, he adds.

Beef Up Cybersecurity
Nearly three-quarters of cyber incidents include a human element, such as an employee clicking a phishing link, according to Infosec, a cyber security training company. Employee education is key to preventing attacks.

“All it takes is one person in the organization to click on something they shouldn’t, and then the entire company is exposed,” says Nathan Johnson from consultancy GLCS. Another essential safeguard is multifactor authentication, or requiring users to present two pieces, or factors, that show their identity before they can access a system.

Find Partners or Platforms
The very largest companies may have the resources they’ll need to manage the evolving global logistics environment by themselves. Many other organizations will need to work with partners and/or platforms to achieve the benefits of scale, says Prologis’ McLaughlin.

Global Trade Management Solutions

Technology tools can help shippers tackle the challenges of global logistics operations. Here are a few of the many available solutions.

Descartes: Datamyne™ is a searchable trade database that provides real-time access to import and export information from customs authorities and trade ministries across 230 markets.

e2open: Features on e2open’s global trade management software include due diligence screening, the ability to automate export compliance and import management, as well as a database of government trade regulations.

ImportKey: The AI-driven algorithm leverages global and U.S. import and export data, as well as U.S. customs data and records, to identify top products, sellers, and buyers for given time periods.

Oracle Global Trade Management: This solution allows companies of any size and in all geographies to centrally manage global trade operations and to optimize, automate, and monitor cross-border transactions from a unified trade and transportation platform.

PartnerLinQ: This supply chain platform integrates with more than 70 TMS, WMS, and ERP systems using industry best practices, common workflows, and data structures.

SAP Global Trade Services: This platform integrates trade services across the entire enterprise and automates and streamlines trade processes.

Trademo: This solution connects billions of supply chain data points and leverages software to provide organizations visibility into their global supply chain networks.

Zonos: The platform provides a range of cross-border solutions, like Landed Cost, which offers the ability to show guaranteed duty, tax, and carrier fee calculations on all orders.

The Challenge

As a high-value shipper which operates largely in the LTL space, Convergint keeps a close eye on key performance indicators such as cost per commodity, on-time-in-full delivery performance per carrier, and claims ratios.

For one such high-value shipment, Convergint needed to move a large quantity of ATMs. These banking machines needed to be secured properly in order to maintain proper functioning upon arrival. To prepare for this, the devices had been equipped with wheels to move more smoothly between trailers and docks in the loading process.

Despite explicit instructions from Echo, the ATMs were accidentally loaded onto faulty pallets by the carrier. As a result, the products could not be secured as required during transit. Upon arrival, the pallets had broken, leaving the high-tech devices damaged and in need of significant repair.

“It was almost a total loss,” said Raj Dharamsi, supply chain manager at Convergint. “The damage was significant, and we were worried our products would not be able to be salvaged.”

The Solution

In 2023, Echo Global Logistics, a leading third-party logistics provider of technology-enabled transportation and supply chain management services, introduced EchoInsure+, a means to add an extra layer of protection to LTL shipments. This shipping solution offers best-in-class coverage as a simple addition to loads booked through Echo and includes claims paid in as fast as 10 days, zero deductible up to $10,000, broader protection with fewer exclusions, and full-value coverage rather than limited carrier liability.

Fortunately, Convergint had included EchoInsure+ on its damaged ATM shipment. Convergint’s client was able to receive reimbursement for 75% of the value of the product, and the parts from the machines were able to be salvaged. The turnaround for filing and resolving the claim was swift, and the time lost and the damage dealt was resolved much more easily than if the shipment had not been insured.

With EchoInsure+, the shipping and claims process is significantly easier, and in the event of lost or damaged goods, the client payout much more accurately retains the value of the product. Now, Convergint ships nearly every load with EchoInsure+, providing peace of mind when transporting their business’s valuable products.

“We were thankful that we had included EchoInsure+ on this particular shipment,” Dharamsi said. “It quickly allowed us to turn a major roadblock into a readily available solution. We’re able to continue to ship our high-value products worry-free with Echo’s help, and we’re grateful for the support of their innovative services and dedicated team.”

The Challenge

Containerized heavy weight cargoes such as wines and spirits, tile and granite, lumber, resin, foodstuffs, and metals are not within traditional container payload weight limits.

Higher payloads were getting increasingly difficult to secure and overweight permit options almost impossible to obtain. Shippers required experienced motor carriers that specialized in heavy weight loads who could obtain the necessary permits to legally transport these loads. Most carriers had no motor carriers to take on the loads once they left the vessel and port.

U.S. states have very strict payload weight limitations: 38,000 lbs. per 20’, 44,000 lbs. per 40’ and 41,000 lbs. per reefer. Shippers were being forced to use additional containers in order to lighten the heavy loads for transport.

They faced a major problem: less cargo in each container equaled more containers per shipment. The bottom line? Paying additional costs to transport their heavy loads.

The Solution

For pickup and delivery of heavy cargo moving via the Port of New York, ACL can significantly increase those heavy weight container limitations. ACL has teamed up with an experienced New Jersey-based motor carrier that specializes in heavy weight loads. They offer professional drivers who are experienced with heavy loads, provide a fleet of quad-axle tractors with two types of tri-axle chassis: 20’/40’ combo tri-axle chassis and 40’ super single tri-axle chassis.

Special permits are provided for New York, New Jersey, Pennsylvania, and Delaware that allow the maximum gross weight of cargo-container-chassis- tractor to be increased from 80,000 lbs. to 90,000 lbs. Heavy New England deliveries are made using tri-axles and quad-axle tractors.

ACL helps heavy cargo stay in conformance with state highway regulations. What this means for shippers is more cargo in each container which equals fewer containers per shipment.

Bottom line? Much less cost! ACL can easily handle containerized heavy weight cargoes that are not within traditional container weight limits. Shippers can now load additional freight into one container with realized cost savings. All heavy shipments will be handled using proper permits in accordance with local and state authorities.

ACL has developed transportation options in New York. We work with professional motor carriers who are highly experienced with heavy cargo and are experts at providing higher payload weight limits with the use of 4-axle trucks, tri-axle chassis, and permits.

ACL can now deliver cargo safely/legally via New York with quad-axle tractors, tri-axle chassis, and special permits for New York, New Jersey, Pennsylvania, Delaware, Massachusetts, Connecticut, and Rhode Island. ACL also has opportunities to widen the benefits found for New York to the Ports of Baltimore and Norfolk if there is interest. Please contact us for more details.

To learn more:
nambookings@aclcargo.com
800-225-1235
www.ACLcargo.com