Setting Up a New Ocean Carrier or NVOCC or Freight Forwarder

Start ups seem to be the focus of our upcoming election and also the regs and requirements for these start ups are at issue nationally. So, if you want to start an Ocean Carrier or NVOCC-FF business, there are several steps at a minimum that need to be completed in order for you to start operations.

Now, a bit of background here. ARTEMUS Transportation Solutions has helped start up 5 NVOCC-FF businesses over the last two years and 2 OCEAN CARRIERS during that time plus we are working with a third Master Carrier right now. So, that's the experience that goes with the entry you are reading. There are several details that are required beneath many of these steps but these basic steps are "required" parts of the process. So, here goes.....

First, what's in a name? What's the name of the company? Do you have your organization set up in the US as a corporation, LLC etc.?  If so, please obtain an EIN Number. This is required down the road.   With your company name, you also need a company contact or key person to represent your company in this process.  This name will be listed with the FMC and used when publishing your application to the public through the Federal Register.

Next, have financials available. If this is a company that already exists but is now looking to get into the US Market, your financial performance and corporate profile will be critical in many parts of the process.

Identify, what will you do? Are you a Master Carrier, Freight Forwarder or NVOCC? Let's get that SCAC for your company

Go to www.nmfta.org and apply for your Standard Carrier Alpha Code (SCAC). A letter is issued to you within 24-48 hours. This four digit identifier is used in so many areas.

Then, contact a bond or surety company and apply for your Type 3 Carrier Bond or continuous bond. The bond company can provide you with details on which would better suit your business.

Pick a Tariff Publishing Company to help you set up the publishing of your tariff. This applies more to the Master Carrier...could apply to the NVOCC and depending on your operation, might apply to the FF. Each case is different as we have found out.

For the Master Carrier, you need to start by going to the FMC Website and complete a FMC FORM-1. During this form filling out process, you will need to identify who will publish your tariff for you. There are several tariff filing companies available and you can usually get recommendations, based on what you are looking for.

For the NVOCC and Freight Forwarder, you need to get an FMC License. If you apply online, the cost is a third of what it would be if you print the application out and mail it in. This is also done through the www.FMC.gov website

Then, of course, you will need to set up filing your imports through AMS and ISF.  This is the company who can help you with this and teach you how to file your own shipments....ARTEMUS Transportation Solutions.

NEXT BLOG - So, now we have our tariff publishing company, our SCAC, our FMC License or Form 1 filled out, we have our bond, company name, corporation set up, and we are ready to go. Now, do you have your bill of lading set up and completed? What about your customer experience? Customer Service, Documentation process, managing containers, shipments etc. Do you have a shipment management system?

Check back later this month for the next steps in the process of How to Set Up a Master Carrier or NVOCC-Freight Forwarder. Until then.....

ARTEMUS OUT!

Automated Commercial Environment - Better Known as ACE - Its coming!

Just published and off the press on 29 March 2012 in Federal Regsiter Vol 77 #61...Department of Homeland Security - ACE or the Automated Commercial Environment for transmission of Ocean and Rail Cargo has now been deemed mandatory by 29 September 2012. Ok, what does this all mean?

Turns out ACE has been working for a very long time. Several organizations, this one included, have been part of the early adopter group whom have tested, fixed, retested, fixed and tested again to ensure that the transition from the old to the new is a seamless one. Being a part of this process, I can say, with confidence that this has been the best example of trade and CBP working together that I have seen or experienced in my 20+ years in the business.  There is real collaberation here and it shows in the development and now implementation of this upgrade to cargo security tracking. 

For many of those reading, the transition won't mean much. For this company, it is a back end change to our clients front end system. But for clients of our company, this opens up the possibility not only to track/trace shipments and input clearance but also monitor and perform functions previously assigned to a broker or forwarder. Being an importer, this give you more control over the data and functions of your shipment.

There is a great link to a document posted by CBP on ACE. Follow this link http://www.cbp.gov/xp/cgov/trade/automated/modernization/ace/ and click the PDF called TRADE BENEFITS.

Most Importers, NVO's, Carriers and Brokers are all looking to expand the relationship with their clients or vendors. ACE facilitates this. For the Importer, you can actually save money by using this environment to pay your duties. Also, you can see the actual duty charges specific to your shipment. For NVO. Carriers and Brokers, this portal environment provides customize reporting and customized functionality to improve your service to your clients.

This post is general. There is much more specific information available at the link above. The most important benefit is the centralization of our Homeland Security in relation to Cargo and allows better targeting and better monitoring of cargos posing a security risk to the United States. I think we all can agree, this is the best benefit of all.

Until next posting...ARTEMUS OUT!

Cargo Volumes for 2012 - What's your 2012 Plan?

Has there ever been a more conflicting set of information about cargo volumes into and out of the US?  

This year there have been several reports, some saying both import and export cargo volumes will go down, some vice versa, and others say exports up and imports down....who do you believe and how do you plan your business accordingly?

Well ask yourself this question; do you ever start a year planning/ projecting your business to go down? Maybe? Possibly? I’m sure it is not the majority of companies who project a downturn, especially in this environment where all signs point up. Let's look at some reported facts of late:

First Fact - Reported recently in one of the trade mags import volumes in Jan 2012 were just about flat, Feb was expected to dip (makes sense with Chinese New Year shut down overseas) and then a good spike in March and April for Imports, projecting double digit increases, year over year! Another trade mag reported the same

Second Fact - Recently published article in one of the trade mags also used this phrase in part..."current statistics show that the economy in the US will continue to improve in 2012"

Third Fact - US Exports in Jan 2012 although slightly down from November 2011 levels, are up from Dec 2011 levels and are above the levels they were in July and August of 2011...keeping in mind that 2011 was the best year for Export from the US - EVER!!!!. Yes, with our highest month ever in October 2011, in terms of US$$ and far exceeding the previous high in 2008. The trend line continues to grow here.

I’m sure if you look hard enough, there can be competing opinions on the above, in the opposite camp and with conflicting data. But, facts are facts and the fact is, we are on our way upward, not downward.

So those in transportation, international and domestic, who planned to take a dip down in 2012, rethink it. This is a great time to look to emerging markets for both imports (that $ is still pretty cheap) and exports to find the many opportunities to grow your business.

Of course, as you grow you will need systems, support, training and maybe some help....don't forget about ARTEMUS Transportation Solutions...besides being tremendously optimistic, we have several staff with over 20 years in the industry, are systems are utilized throughout the world by over 125 international transportation and trade companies.

Our web based software products are used daily by 4000+ users in 19 countries. We have the systems, knowledge, and support you need to as you grow your import and export markets.

If you want to ask a question, make a comment or shout out, please feel free to contact us...www.artemus.us

Until next time....

ARTEMUS OUT!

Infrastructure, Road-Bridge Improvements and Transportation - Why is it Political?

I am sure everyone has heard from our political leadership about putting people back to work by improving our infrastructure. For transportation professionals, everyone we have spoken to is for these investments. All common highway users know you cannot let roads, bridges, railroads, transportation options decay to a point to where we start having serious problems transporting freight and people.

So, why must improving our transportation system, be political? In mid-2011, our President rolled out a jobs plan, which we all have heard included investment on improving our infrastructure. Then, this week, we all hear about the House of Representatives passing legislation for a significant investment on improving our infrastructure.

When we saw this, it was "great news" Two sides are finally agreeing on this investment. So, why not much talk? Well, as with all plans that come from our Executive and Legislative Branch, they are not just a simple investment in infrastructure. Each branch has to "tag on" things the other side will not agree to. So, where all Americans, especially those in our transportation industry, support investing in infrastructure, it now gets used by both branches' to "tick off" the other and use the lack of support of each other as a way of gaining talking points. Why?

There has to be a way to get our representative leadership to just put together legislation like they do when voting on a special day for a past hero, or a simple bill like the ones that showup and get voted on to dedicate a monument. Why can’t we just take what each side sees as infrastructure improvement in each plan and agree, sign and get on with it?

Would an exporter come to a carrier and ask to ship a 40 footer of sneakers to South America and then after you agree, ask you to amend the service contract to allow them to tape a trash bag of CD's on each 40 footer for their friends at the destination? Sure, and then you would knock it back. Why can we just make it simple, take what we agree upon, sign it, get it into law and move forward?

What do you all think? How does our current political environment affect your company to do business? We would love to see specific examples so we can show how these simple things can and would make a world of difference.

ARTEMUS OUT!

New Year in the Port of Virginia

Welcome to 2012.  After a better 2011, 2012 looks promising at the start.  In attending several events over the past few weeks, we have noted that activity in our industry is on the rise.  In the port of Virginia, for example, had its best December ever in terms of total volume handled at the port.  In a report given this week, the last three months at the Port of Virginia, have been on the upswing and that indicates that a positive trend is in view on the horizon. 

Opportunities exist all throughout this fine port.  The addition and investment in the rail road operations to feed southern and Midwest locations not previously being competitive destinations for our fine port.  Now, starting in 2012, additional business should come with the investments in an inland port location and inland rail head additions, with the combination of a port capable of handling the largest vessels coming through the Panama Canal. 

Finally, the international shipping and maritime workforce of Virginia...here, there is the existence of maritime studies and international education programs by fine universities in Virginia that are turning out highly educated, trained and tested new potential employees to compliment the fine tradition of well trained and cooperative waterfront staff and a tradition of educated and experienced maritime and shipping business professionals in this fine state. 

So, looking for a place to start up an import/export shipping business, forwarding business, NVOCC, Small Carrier or Logistics operation, this is the port, the state and the location that supports and promotes your success in this industry. 

If you would like more details on starting a business or location in Virginia, send us a message and we can guide you on what information to read, where to go for support and what to do to get started.  information@artemus.us

Have a great 2012!

Artemus Transportation Solutions is deploying new online transportation, shipment management and trade compliance products that adapt to all devices, browsers and third party systems in addition to meeting all the US Customs and Canadian Customs trade compliance requirements, including the upcoming changes for both Customs organizations.  Artemus TS is part of the early adopters group in both cases. 

ARTEMUS OUT!

Global Expansion - How do you do it as a small shipping business?

Over the last few months, our staff and I have attended many seminars, lectures, forums and speaking opportunities regarding the expansion of your business into a global market. Most of these events are focused on manufacturing or distribution but they can also be applied to service and global shipping service networks.

So, are you a small NVO/FF, Importer or Exporter looking to expand globally? Well, this can be done and you might be surprised as to how this can be done and what is available. First, let me speak about the State of Virginia....(probably the same is available in any state)

State of Virginia has organizations like Export VA or Yes Virginia, or even VA Economic Development that provides free support to businesses that are looking to hook up overseas and expand. Most recommend a relationship, like a local distributor or sales organization that is already on the ground in the local area you want to get into.

There are also US Based sales representatives, representing a country, a port, or municipalities that will help introduce your business to like businesses or potential clients to expand your reach as a business...again, all FREE!

Finally, most states and the federal government have mission trips, trips where you pay a fee and the organization, local, state or federal, that will set up meetings with potential clients, partners and distributors, tailor made for your organization.

Yes, much of what is written here is "general" but there are specifics in each area that we can provide for you if you are interested. But, there are many cases where a small business has "blown open" their revenue line just by getting into one of these programs, making an outreach to an organization that can help and that these mission trips can be direct hits to expand your business and outreach.

Our organization here in Virginia is setting a strategic goal for 2012 to exploit all these opportunities available and let's see how it works for us.

If you want to discuss this further, please reach out to us and look for our new website, twitter feed, blog post and new software and online training products, being updated and deployed as we write this.

Have a great holiday season and we look forward to 2012...hope you will have a great year too.

ARTEMUS OUT!

Fees - Fees - Fees and More Fees

Good Day - all the talk in transportation for the public is the amount of money airlines and even banks are making millions on fees.  Fees for baggage, fees for the use of services provided by the service provider and as you all know, in the maritime business, we have surcharges, port fees, documentation fees, even fees to use the live customer service line instead of booking or using the online services provided by carriers and freight intermediaries. 

One good way to avoid fees is to get to know the details of the business and in doing so, do more yourself.  In international cargo shipping, you really need to understand the business in detail to avoid many fees. 

Documentation fees, for example...many exporters and importers can avoid many of these fees by doing certain processes themselves.  Exporters can file their own AES or Ex Dec.  Importers can do their own cargo customs reporting, to avoid paying brokers to do this for them.  Intermediaries can file their own AMS and ISF for their shipments and avoid this charge from the carriers.  Exporters and Intermediaries can electronically send in bookings to Ocean carriers without even picking up the phone. 
Understanding the details of how the business works and doing more yourself can avoid some fees that do add up over time.  These are also places where, if you are a carrier, freight forwarder, broker, importer or exporter, that you can add to your own revenue stream by doing these services for your clients. 

Yes, this is a self serving post because Artemus does provide training in how to "do it yourself" We even have a class coming up in Virginia Beach VA on November 28 that will review all the critical shipping process and give you the tools to "do it yourself".  If your not local, the same class is available online.

Artemus also provides software, systems and support to provide you with the tools and training needed to take your service under your own control, save money and hopefully provide more profit to your bottom line.

The bottom line is that the more you know about the process or service you are working with, the more you can ultimately save money by doing more yourself.   
And yes, TECHNOLOGY is key here so give us a call and ask us how we can help!  866-744-7101

Artemus OUT!