Posted on

What you should know about freight forwarding

Two professional freight brokers speaking in front of large freight units.

Does your business require the importation of goods? Do you stress about your product being delivered on time? If so,  you should consider working with a freight forwarding company. At Cordova Brokerage, based in El Paso, we offer trustworthy freight forwarding and logistic services. 

Give us a call at (915) 595 8774 or contact us online for a consultation today!

What is Freight Forwarding?

An El Paso freight forwarding company is an organization that moves goods and products all over the world on behalf of the person or company requesting it. They don’t physically move the goods themselves; they establish relationships with the companies that do the moving. In doing this, they plan out the entire shipment process on behalf of the client. To make things even more convenient for you, Cordova Brokerage will also ensure you get the lowest cost possible in terms of service. Let us do the hard work; you have a business to run!

What a Freight Forwarder Does

The experts at Cordova Brokerage in El Paso have a broad understanding of the international market. We take into consideration the condition of your goods, if they are perishable, hazardous, high in value, etc. Based on the kind of product you are transporting will depend on what kind of route we organize for the delivery. As mentioned before, we strive to keep the cost low for you. In order to do this, we negotiate the contracts, the transportation methods, and the handling with the company (or companies) moving your products. 

To have a deeper understanding of the freight forwarding process, here are the steps involved in the forwarding process:

  • Export Haulage- This may be the most familiar step in the process. This step involves the transportation of your product to the freight forwarders’ warehouse. Like most shipments, this transportation could range from a few hours to a few days. Depending on the distance and the value of the shipment will also depend on which mode of transportation is needed. 
  • Export Customs Clearance- Before any international shipping can occur, the country’s customs agents must approve the product departure. The agents will go through the paperwork and the details of the shipment to make sure it is safe and legal to ship. 
  • Products Checkpoint- This is the middleman part of the process. This is when the receiving team unpacks the products in their warehouse. They make sure none of the shipments were damaged during the transport. The freight forwarders will also make sure that the delivery location will accept the products. Certain items may have restrictions, like drugs, flammable liquids, and perishable items. 
  • Import Customs Clearance- Similar to the export customs, once your products arrive in the destination country, they will be checked to make sure they meet the legal requirements of the country. The import customs will sometimes charge fees that the freight forwarding company will temporarily cover. 
  • Destination Handling- Once the shipment is cleared from import customs, the freight forwarders will handle the transportation for the product to be delivered to its final destination. 
  • Import Haulage- This is the last stage of the process. Much like in the export haulage step, this is when the transportation method is chosen for the final delivery location. As mentioned previously, the mode of transportation is determined by how far the drop-off location is from the warehouse and what kind of goods are being transported. 

Why Choose Cordova Brokerage?

When it comes to the transfer of delicate goods, you want a skilled El Paso freight forwarding business you can trust. When you place the job of handling your product in our hands, understand that we will deliver results. 

Call us today at (915) 595 8774 or contact us online to learn more about our freight forwarding services. 

Posted on

When Do You Need a Customs Warehouse?

A worker walking through a customs warehouse in El Paso.

When importing and exporting goods, an El Paso customs warehouse can be a valuable asset. Whether you’re an importer, exporter, or twin plant operator, a customs warehouse can help you manage customs processes and paperwork more effectively. 

At Cordova Brokerage, we understand the importance of having a reliable and knowledgeable Customs Warehouse partner. We offer dedicated customs brokerage services to help you navigate the complexities of international trade. We’ll discuss when you need to utilize a Customs Warehouse and how Cordova Brokerage can help.

If you require the services of a customs warehouse in El Paso, you’ve come to the right place. Contact us online or call (915) 595-8774 to learn more.

Understanding Customs Warehouses

A customs warehouse is a secure facility licensed by the government that allows for storing imported goods that are not yet subject to import duties or taxes. These warehouses offer businesses an opportunity to delay the payment of these fees until the goods are sold or removed from the warehouse.

When goods arrive at an El Paso customs warehouse, they are placed under customs supervision. This means that they are subject to government inspections and regulations. However, the goods can be stored without paying any import taxes or duties until they are either sold or removed from the warehouse.

What Are the Different Types of El Paso Customs Warehouses

There are three different types of customs warehouses. Each type of warehouse has its unique features and benefits that make them suitable for different types of businesses and situations.

  • Public warehouses are operated by third-party logistics companies and offer space for storing goods that are waiting for clearance by customs. They typically provide a range of services, such as receiving, handling, and loading of goods, as well as documentation and customs clearance assistance.
  • Private warehouses are owned and operated by individual companies and are used for storing their own goods. They offer greater control and security over the storage of goods and more flexibility in handling and storage requirements.
  • Bonded warehouses are specialized facilities that are authorized by customs authorities to store goods that have not yet been cleared for import or export. They are subject to strict regulations and must comply with a range of customs procedures and security requirements. 

When Is a Customs Bonded Warehouse Recommended?

A customs-bonded warehouse is recommended for businesses that import goods and need to defer payment of import duties and taxes until the goods are sold or otherwise removed from the warehouse. This can provide significant cash flow benefits, as businesses can delay payment of these fees for an extended period of time.

Customs-bonded warehouses can also be beneficial for businesses that need to store goods for an extended period of time or that require additional security for their inventory. By storing goods in a customs-bonded warehouse, businesses can ensure that their inventory is protected from theft or damage, as well as from customs penalties for non-compliance.

Experience Personalized Customs Brokerage Services with Cordova Brokerage

Cordova Brokerage in El Paso offers a comprehensive and tailored service for all your Customs Warehouse requirements. With our dedication to excellence and personalized approach, they strive to ensure that our client’s needs are met efficiently and effectively. With Cordova Brokerage by your side, you can be confident that your customs brokerage needs are in good hands.

Contact us online or call (915) 595-8774 today to experience our exceptional service and personalized approach to customs brokerage.

Posted on

What is Freight Forwarding?

Shipping containers being moved by a forklift with a plane transporting freight in the background in El Paso.

Freight forwarding is an essential service in the realm of international shipping. Whether you are using transport services by sea or air, it is always best to have the guidance and knowledge of a professional. We outline the important facts and details about freight forwarding that you should know. 

If you need assistance with freight forwarding or want to learn more, Cordova Brokerage in El Paso can help. Contact us online or call (915) 595-8774 today.

Freight Forwarders vs. Freight Brokers

While the two may sound similar, they both have different responsibilities. A freight broker works as a middleman, connecting carriers and shippers. Freight forwarders organize shipping for domestic and international trade, arranging logistics for moving and storing goods during transit.

A Range of Services 

Considering freight forwarders have many responsibilities, they provide numerous services, including:

  • International import/export documentation
  • Customs
  • Packaging
  • Storage of goods
  • Insurance of loads 
  • Management of the inventory

If you are looking for a freight forwarder who handles specific tasks, this is something to ask immediately when getting in touch with professionals.

Shipping Restrictions Apply to Certain Products 

There are some items or goods that companies cannot legally ship to other countries. Many of these restricted items include but are not limited to:

  • Toxic substances
  • Flammable materials
  • Drugs and/or alcohol
  • Batteries
  • Sharp objects
  • Perishables

If you have any questions regarding the legality of your items or shipment, you can speak to an El Paso freight forwarder to advise you. 

Six Main Stages of Freight Forwarding   

Many steps are taken in freight forwarding, but six key stages make up the process. 

Export Haulage

The first main step consists of transporting goods from the warehouse or manufacturer to the freight forwarder’s warehouse. 

Export Customs Clearance 

The next step is taken when the shipment receives clearance to leave the country of origin. 

Origin Handling

After the ship arrives in the country of destination, officials then unload and check the booking documents regarding what is in the delivery.

Import Customs Clearance

Port authorities will proceed by checking customs documents.

Destination Handling

After authorities look at the documents, the cargo is then transferred to the import warehouse. 

Import Haulage 

The process is finalized once the shipment travels from the import warehouse to the final destination. 

Documentation

An El Paso freight forwarder provides documentation, which is part of several steps in the process, solely to ensure shipment security and prevent possible legal issues down the road. 

Some documents you can expect from a freight forwarder include the following:

  • Invoice
  • A bill of lading
  • Certificate of origin statement
  • Inspection certificate 

Labeling and Packaging

In addition to packaging and storing goods, a freight forward may (upon request) provide accurate labeling for products. This can also include weight designations or if the goods are deemed dangerous or not. 

Storage

In addition to labeling and packaging, a professional freight forwarder can provide clients with warehouse space in the country of origin and in the destination. You can rest assured that your goods will be covered by insurance and properly housed and stored in a climate-controlled, secure area. 

Legality 

One of the major benefits of hiring a freight forwarder is that they are in full understanding of legal details in specific countries. Even if your company is based in North America, it is essential to know the laws if you are shipping goods across borders. 

Hire The Right Freight Forwarders  

Whatever your shipping needs consist of, you can always rely on El Paso freight forwarders to ensure you are on the right path. Hire a freight professional from Cordova today and contact us online or call (915) 595-8774 to get started. 

Posted on

How to Hire a Customs Broker in El Paso

Ship transporting imports and exports to El Paso.

If you’re an importer and exporter, you understand that customs laws are stricter than ever. As a result, it’s possible, even for those experienced in the business, to run into customs issues with their goods. 

If you want to avoid these issues and stay on the right side of the law in El Paso, then you should hire a customs broker. Contact us or call (915) 595-8774 today!

What are the Responsibilities of a Customs Broker? 

Essentially, a customs broker’s job is to make your life easier. They’re responsible for knowing the various laws and restrictions surrounding importing and exporting goods into and out of the United States. And, because of El Paso’s proximity to Mexico, it holds an important place in the world of importing and exporting goods. 

In addition to understanding the laws about importing and exporting, there are various forms to fill out and hoops to jump through. A customs broker will understand these hoops and documents and ensure that they’re filled out correctly. 

What to Look for in a Customs Broker? 

If you’re looking to hire a customs broker for your business, here are some of the top things and skills to look for. 

Experience 

One of the main things to look for in a customs broker is experience. Experience is essential in many industries, but none more so than in importing and exporting. An El Paso customs broker should know all the rules and regulations about the goods you’re importing or exporting. And, no matter how much training they have, only experience can fully prepare a customs broker for the obstacles they’ll face. A good customs brokerage will have many professional and experienced customs brokers to assist you.

Respectable Reviews 

As with all professions, checking online and word-of-mouth reviews is important. Reviews from other people, preferably previous clients, will tell you everything you need to know about whether a customs brokerage knows what they’re doing. 

Versatility 

When hiring a customs broker, you want a company that can do it all. Importing and exporting is a big part of the process, but customs brokerage also involves warehousing, docking, and forwarding. 

Communication 

One of the most critical components of being a successful El Paso customs broker is their communication ability. If your customs broker can’t maintain communication between you and the various government entities they’ll have to deal with, they won’t be successful. 

It’s vital for you, as a customer, to have ready and easy communication with your broker so that you know where your goods are and what you need to do. It’s also important for them to maintain communication with the government to get your goods where they need to go on schedule. 

Problem-Solving Skills 

Problems will inevitably arise throughout the process of importing and exporting. Therefore, having an El Paso customs broker who can solve these problems without bothering you is a huge plus. There are many moving parts in customs brokerage, and having someone who can solve these problems and handle the moving parts for you is massive. 

Ability to Use Technology

While hands-on communication remains vital in customs brokerage, much of the work is done with technology. The ability to use modern tools like websites, Google Suites, supply chain software, and other online tools and technology is paramount. The days of doing everything on paper and hard copy are gone, and the days of technology and online workability are here. 

How to Hire The Top Customs Broker in El Paso

If you want to hire a customs broker in El Paso who meets all these requirements and more, contact us or call (915) 595-8774 today. Cordova is CTPAT-certified, and an industry leader in customs brokerage, importing, exporting, forwarding, and warehousing needs. We’ve been in the business a long time and know everything there is to know about importing and exporting your goods.

Posted on

Is Cross-Docking Right for Your El Paso Business?

A cross-docking worker preparing for a new shipment at the shipyard.The importance of the supply chain industry in modern business is due to many reasons. A successful business needs a fast, productive, and effective delivery of goods. If the supply chain is followed correctly, it increases the business efficiency and significantly reduces the time taken in transportation.

Click here to know more about cross-docking for your El Paso business

Before we dive deeper, let’s take a look at what cross-docking is.

What is Cross-docking?

Cross-docking is a supply chain model that immediately transfers goods from suitable suppliers to retailers or whole sellers directly with little or no storage.

This practice promotes faster replenishment and reduces shipping costs as it positions the inventory closer to the customer, which it has to supply.

It is done in docking terminals. The goods are unloaded from suppliers and loaded onto trucks that are headed to the customer or end-user.

Why is Cross-Docking Right for Your El Paso Business?

These are a few advantages of cross-docking that is highly beneficial for your El Paso business.

  • You can save a significant amount, as it means you don’t need more space for storage. In cross-docking, warehouse space is used to store for less time as it can be sent to the end customer quickly.
  • You can eliminate expenses like storing goods, handling and counting these goods, and insurance of inventory costs money. The best thing about it is the immediate transfer to the end customer with minimum holding time.
  • It edges the risk of your goods getting spoiled or damaged because of the immediate transportation facility, which leads to retaining the quality of products.
  • This has altered the idea of transportation. Now it is easy to manage large packaging as they break down large packages into smaller ones which are easy to handle and load in trucks. This exercise also edges the damage risk of the goods.
  • It provides a central site to handle products. The goods that will be transported at dock locations are sorted and loaded onto multiple carriers or transporters based on the shipment’s final destination.
  • When done correctly, it improves productivity quite well as you will be aware that your goods are in safe hands and will be transported quickly without any loss.
  • With the right cross-docking company, you can improve customer relationships because the proper packaging and on-time delivery are what a customer looks for. 
  • If you are dealing in the business of frozen items or products that need a specific temperature to be stored or transported at the right time, then it is better to go for a cross-docking company that fulfills all your requirements. 

Why Do You Need Cross-Docking?

To run a business successfully, cross-docking can work quite well and gives you a number of benefits. They can handle your transport problems and loading and unloading procedures, and now they are equipped with advanced technologies and machinery that effectively do things. 

Now, the companies that provide these services have forklifts, pallet trucks, conveyor belts, and more equipment that ensure faster loading and unloading processes. They can handle multiple deliveries in a single day without any difficulty and mismanagement. 

Cross-Docking in El Paso

We hope now you understand why it is essential to have a reliable cross-docking service for your business in El Paso. If you are looking for expert cross-docking services, then contact Cordova Brokerage and let us transport your goods with care. 

Posted on

What You Need to Know About Importing Goods From Mexico

flag of America and Mexico with postal packages logistic center 3d-illustration

Mexico is one of the United States’ biggest trading partners. Every day, there are about $1.7 billion in products and services crossing the U.S.-Mexico border. The relationship between the two nations cannot be emphasized enough, and it’s why trading agreements such as NAFTA and the most-recently-negotiated USMCA (United States Mexico Canada Agreement) made top news and ruffled political feathers when it was threatened. As these trade agreements were negotiated, the importance of the Mexican market was once again highlighted here at home. 

The importing process, of course, is another matter altogether, and one that requires a hefty amount of paperwork, understanding of laws and regulations, and customs clearance processes. 

Here’s what you need to know about importing goods from Mexico. 

If you’re looking for a customs broker in El Paso to help you import goods from Mexico, the Cordova Brokerage team is there to help. Headquartered in El Paso, Texas, we know the border regulations inside and out!

Importing Goods from Mexico 

Mexico is the second-largest supplier of goods for the United States. According to the most recent data, Mexico’s trade accounted for about 671.1 billion in 2018, which tallied up to more than the total trade with our northern neighbor Canada. The biggest categories of goods coming in through our Southern border include:

  • Vehicles
  • Electrical machinery 
  • Agricultural products
  • Mineral fuels
  • Optical and medical equipment 

What You Need to Consider When Importing Goods 

When talking about international trade—imports or exports—companies and businesses should note that every country is different. A lot of factors play when looking at important goods in the United States, all of which should be understood to avoid setbacks or loss of revenue. 

Factors to consider are:

  • Regulations of what you can and cannot import into the United States 
  • Tariffs on goods and where you import them from 
  • The time and the cost of transportation 
  • Other regulatory hoops 

Key Facts About Importing Goods from Mexico 

Many importers like working with Mexico as a country of origin for their goods because of the friendly relations and trade agreements between the two nations. Some of the benefits of importing from Mexico include:

  • Reduced or waived import duties. Consider import duties as an additional tax that a company must pay to customs authorities as a rate in addition to any goods coming in from other countries. Authorities calculate this duty with a percentage of the total value of the goods or the weight of the goods. Imports from Mexico, by contrast, do not have import duties.
  • Faster turnarounds. The proximity of Mexico to the United States reduces the turnaround time. Overseas imports, for example, have to account for a long transportation time from the moment the order is put in when it arrives in U.S. ports. The reduction in transport time can translate to more efficient orders and a major benefit to those working under fast fulfillment timelines, dealing with supply chain issues, etc.
  • Expedited communication. When working with international partners and companies, communication is key to ensuring the smooth flow of goods and payments. Because of Mexico’s geographical proximity, the time zones are very much lined up. The fact that Mexico and the United States share time zones make communication back and forth easier and more reliable.
  • Decreased transportation costs. The geographical location of Mexico just south of the border also reduces the physical distance that goods need to travel. By having imported goods travel a shorter distance, costs associated with transportation are significantly reduced.
  • Stable national relations. Mexico and the United States have amicable and working political and social relations, as well as trade relations. When countries have volatile relations, it can make the market less stable and subject to new tariffs, taxes, or stringent regulations. 

Other Things to Note

Despite the stable relations between the two countries, there is still a long list of rules and government regulations that companies must follow when importing goods from Mexico. For example:

  • The most commonly used import document from Mexico is the Customs Declaration Form for customs clearance. Mexico requires this completed document to be accompanied by a commercial invoice, a bill of lading, payment documentation, and more. 
  • All Mexican importers are required to register with the Official Register of importers. 
  • If you are exporting to Mexico, it’s worthy to note that Mexican customs regulations are strict and require absolute compliance. 
  • Products that qualify under the USMCA agreement will typically require a set of nine data elements in order to pass through as USMCA authorized products. 

Thinking of Importing Goods from Mexico, Find a Trusted Customs Broker to Guide You 

The job of a customs broker is to help clients move through the customs process effectively and in full compliance. Whether you are importing from Mexico or another country, the rules and regulations might differ, and understanding of paperwork and required documentation your goods can arrive on time and without added fees or penalties. 

Want to learn more about how to effectively import goods from Mexico? Contact Cordova Brokerage for expert guidance and advice. 

Posted on

Continuing Covid Lockdowns in China and The Effects on the Global Supply Chains

China covid lockdowns in a drawn example

For most people in the U.S., strict covid lockdowns are a nightmarish memory of the recent past, but for 24.9 million people, it’s still very much a reality. In pursuit of their ‘zero-covid’ strategy, China has once again shut down their cities and locked people in their homes. While to the rest of the world, the concept of endless lockdowns seems rather draconian and unthinkable, the Chinese government has doubled down on these policies. 

In addition to harming its population and its own economy, these governmental policies also cause reverberations around the world. Part of those reverberations includes the effects on the global supply chain. 

Let’s look at the specifics. 

The Continous Covid Lockdows and The Effects on the Supply Chain 

As the world slowly returns to normal in America, other parts of the world continue to struggle under the covid threat and are a long way away from normalcy. Recent reports out of China, for example, are slowly painting the horrid picture of a population stuck in their homes without the ability to work and —at times— feed their family. 

Chinese lockdowns are much different than what Americans might remember as lockdowns. Even the strictest period in American covid policy did not compare to the Chinese government’s enforcement. In China, residents can be subjected to much more oppressive actions, including the complete inability to leave their homes. They can’t leave for work, get food, or even receive medical care. It is keeping the population completely barricaded. 

Reports of people going hungry in Shanghai are slowly trickling into the Western media. According to some reports, government handouts of food have been somewhat unreliable. The authorities in China themselves have admitted to a food shortage as a result of a lack of planning and coordination. 

When Omicron hit Shanghai, the authorities changed course with their policies and turned to a zero covid mentality. Before that, Shanghai had comparable covid policies to the rest of the world: mask mandates and social distancing, but nothing to the level of draconian lockdowns. With the fast spread of Omicron, the government began what they called a ‘temporary pause,’ which has been extended again and again. For communities with a single new positive case, the lockdown is extended for 14 days. 

In Tesla’s factory in Shanghai, workers are practically living on-site in order to keep production going. The company is doing its best to provide sleeping bags and mattresses and designated areas for eating and entertainment. 

The External Effect 

The full consequences of the lockdowns still remain to be seen, as Western media has little access to many of the realities in China on the ground. Shanghai is where one of the world’s largest ports is located. Their Pudong airport is the world’s busiest cargo airport. The city accounts for 7.4% of China’s exports and 14.4% of imports. 

The city has one of the most essential semiconductor manufacturing centers, is the center of many auto producers, including SAIC Motor, and SAIC’s other joint companies, including Walkwages, GM, Tesla, and Ford. 

At this point, it is no secret that the United States imports a lot of goods from China. The past few years have certainly brought this idea to the forefront of people across all sectors. The United States imported about $435 billion of goods from various Chinese cities. 

The current policies are creating all kinds of stop gaps and hurdles in the city itself, where the ports are overfilling without anybody to pick up their orders or deliver them. This is despite efforts to maintain a ‘closed-loop’ system at the ports, where workers sleep and eat on-site without leaving. So when lockdowns end, a pent-up amount of orders will cripple supply chains by creating clogs in the supply lines.  

Reverberations of the Chinese Lockdowns in Europe

Many American companies have become highly dependent on Chinese goods. America is not the only country that feels the gaps in the supply chain due to Chinese policies. The European Union sent a letter to the Chinese government asking them to reconsider their stringent policies as European supplies suffer the consequences of backlogged orders. According to Freight Waves: 

  • Container volumes out of China have dropped 31%. This impacts the U.S. surface freight market. 
  • There are reportedly 300 containerships and 500 bulk ships off the coast of China
  • Backlog of orders when things open back up will create massive chaos and clogs in the supply chain

Get Professional Assistance With Exports and Imports Through a Customs Brokerage 

The world of global supply chains, imports, exports, and fluctuating markets is an ever-changing landscape. It is often affected by the policies of governments around the world and COVID lockdowns. 

A customs broker specializing in studying the changing regulations and what’s happening in the world of international trade in order to better facilitate the exchange of goods. 

Learn more. Connect with us at Cordova Brokerage. 

Posted on

What is the Bullwhip Effect in Supply Chains? Here’s How This Phenomenon Affects Trade

supply chain diagram hand drawing on chalkboard

supply chain diagram hand drawing on chalkboard

We’ve covered the complexities of the supply chains and the role of imports and exports in a highly globalized and interconnected market extensively. The vulnerabilities of the supply chain have become all too clear for people involved in every aspect of production, manufacturing, assembly, and distribution. This has led to major instability across many sectors and a profound assessment about how supply chains need to be reinforced and less dependent on imports from certain countries—at least that is the view for some. 

So in the coming months, you might be hearing a lot about the bullwhip effect in the supply chain. It’s already making the rounds. So what is this phenomenon? 

Here are the basics. 

The Interconnectedness of the Supply Chains 

The importance of uninterrupted movement and goods across all industries cannot be understated. Everything we see at the store shelves or car lots has likely undergone a long journey that possibly began in a different country, traveled across oceans, waited in a cargo ship or shipping container, went to the manufacturing plant, and then made its way—via highway and truck—to the store or dealership in which you will buy it from. 

This long journey was far more fragile than people had realized. It was the disruptions of 2020 that really cracked open some of the problems. Now that the economy is gearing back up, companies and manufacturers are running into different kinds of problems. 

How did it all begin?

A major shift in lifestyles, consumer demands, and economic conditions. For example, as the world shut down, consumer demands fluctuated towards at-home spending. This meant exercise equipment, cookware, entertainment, computers, and other personal products. 

The Bullwhip Effect Phenomenon

So there’s a lot of discussion right now about companies such as Peloton, suffering from the bullwhip effect. There’s speculation about the chip shortage and automobile manufacturing being impacted by the phenomenon as well. So what does this mean? 

The idea can be simplified as follows: 

Think of a whip. A relatively small movement of the wrist causes large waves in the movement of the whip at the other end. So, small changes in consumer demand at the retail level will cause ever-growing reverberations and fluctuations in demand at the wholesale, distributor, and manufacturing levels. 

Let’s look at an example of the Bullwhip Effect

A store sees an increase in demand for exercise equipment. As happened to Rogue Fitness at the beginning of the pandemic. The company then makes augmented decisions based on these observations, but the effects grow as it moves back into the supply chain. The amplified decisions made at the ground level easily destabilize and misalign the supply chain behind it. 

If a fitness equipment company like Rogue (for example), was used to selling 100 barbells in one month and suddenly they see a spike in demand, they will likely turn around and double their order. The company might over-correct and amplify that number and suddenly order 300. This sudden jump will have major consequences as it moves back to the supplier, manufacturer, and importer (if it applies). Hence, the bullwhip. 

The effect is magnified when there is uncertainty and/or lack of information, as there was when the pandemic began. Nobody really knew what was going to happen and some companies miscalculated, some ordered less, some more, and suddenly were faced with a strained and backlogged market.

The Microchip & Semiconductor Issue

One of the biggest concerns facing people in the trade and the domestic manufacturing business is the high dependence on microchips and semiconductors. A lot of our current consumer goods make use of these little components that are largely imported from places like Taiwan. 

These semiconductors are found in electronic devices, vehicles, computers, and other high-tech appliances. 

How is this Affecting Trade and Imports and Exports

For one, the world of international trade has certainly changed since the start of the pandemic. Countries have become a lot more stringent and the ease with which products flowed in and out has certainly been disrupted. Companies have realized that putting all of their eggs in the China or international import basket can be risky. So, some companies have gained an advantage over international importers given the backlogs at the supply chain. Products are not getting to the U.S. as swiftly as they once did. 

So this has shifted the balance in the importing numbers prior to the pandemic. Companies have started to manufacture components that were previously brought in from overseas, but that still leaves a lot of companies with material and labor shortages. 

Is Your Company Importing or Exporting Goods? Talk With an Experienced Customs Brokers

As a businessperson, you are likely watching these markets and fluctuations carefully. So while a customs broker doesn’t control the supply chain or the supply and demand of goods, we can help you with the ever-changing landscape of international trade and transporting goods across oceans. This is a complicated field as countries develop stringent paperwork and documentation requirements. 

You have enough to worry about. Leave the paperwork to us. Call Cordova Customs Brokerage today.

Posted on

The Benefits of Warehousing Services for International Trade

Male warehouse worker with a tablet.

Male warehouse worker with a tablet.

Do you know the warehousing industry in the US will be worth $29.2 billion in 2021 as international trade grows?

For the import and export trade, warehouses optimize your business’s operations. You should thus find the best warehouse for your storage needs in international trade.

For all your inventory management needs, you require a sizeable warehouse. Such needs increase with the business expansion internationally. A great warehouse helps streamline the supply chain, thus helping the brand grow.

Your business’ development is better suited with warehousing. If you doubt the need for warehouse space, this article is for you. Continue reading to understand the benefits of warehousing services for international trade.

Have Centralized Storage

Do you desire to have a centralized location for your business operations? Warehousing answers such concerns by allowing you a single site for storage.

The existence of a production gap in business can be a massive blow to business success. Your supply chain has to be as streamlined as possible, and it starts with having a central storage area.

Storing goods centrally allows you to receive, store quickly, and distribute commodities. As a result, you save on time and costs you’d otherwise incur with a production gap.

You’ll thus have to check the location when choosing a warehouse that fits your needs. It needs to be strategically located to meet the wants of your target market.

Better Order Processing

How efficient is your order processing? Did you know that you could increase your order processing ability through warehousing?

It’s no secret that you seek to serve your customers as fast as possible. An agile order processing system will help you achieve customer satisfaction.

Your clients want timely delivery, and the warehousing service helps you fulfill it. By having the items in inventory, you’re only left with shipping once clients place orders. Warehouses facilitate accountability, meaning you’ll know what inventory levels to maintain.

Improved Production Quality

Most people assume warehousing is only linked with the supply chain after production. It’s not true since investing in a warehouse also influences production.

When producing in large quantities, quality management systems can be lenient. You thus end up with several items in your inventory that might not be up to standard.

Warehouses offer you better insight into your production quality. You’re able to evaluate your raw materials to ensure you have quality inputs. By planning the necessary quantity for production, you’re able to keep an eye on the quality of the finished goods.

By detecting defects early, either on the raw materials or finished goods, you’ll adjust as need be. Warehousing thus ensures that your items meet the quality standards for international markets.

Improved Purchasing Decisions

How do you decide when to make additions to your business? From raw materials to equipment and supplies, warehousing helps make better purchasing decisions.

A warehouse is effective in inventory control and management. As a result, you’ll know about your order history on the sale of commodities. It’s thus ideal for identifying areas that need replenishing.

By determining what you need to stock up, you’re able to make strategic purchase decisions. You thus don’t get to splurge on raw materials or items that you don’t need. In the end, you’ll have an easier time turning a profit.

Leverage Seasonal Market Changes

Peak and off-peak seasons can be confusing for the business. Warehousing services assist you in leveraging operations for seasonal market changes.

Low seasons for your business are characterized by not hitting your sales targets. Such occurrences shouldn’t put you off since the warehouses let you plan for the low seasons.

You can study consumer trends to diversify your business as you adjust to market needs. Warehousing supports business growth since you can stock up for the peak seasons. The warehouse gives your business operations a boost without increasing the cost burden.

An Important Risk Management Tool

Business is risky, and you’d want to stay clear of anything that would result in losses. Warehousing is a risk management tool that’s invaluable in international business.

The risks within the international markets include inflation and exchange rate fluctuations. One of the functions of warehouses is to hoard commodities to avoid losses. You can keep inventory until you get an excellent market rate on your commodities.

There’s also the risk arising from product spoilage once production is complete. Warehouses are equipped with special facilities for a favorable condition to avoid spoilage.

Warehousing services leverage other risks such as theft and fires. The warehousing service insures goods in storage, so you get compensated for any product damage.

Types of Warehousing to Know

Let’s get familiar with the different warehousing types to better understand these benefits. You’ll need the knowledge before importing products!

Here is a brief outline of the various warehousing types:

  • Public warehouses are state-owned and presented for rent by private businesses
  • Private warehouses are owned solely by a specific entity to store their commodities
  • Cooperative warehouses are owned jointly but are available for rent to private businesses
  • Distribution centers apply in the distribution of shipments from one point to another

You Now Know the Benefits of Warehousing Services for International Trade

Every business has warehousing needs to be met for efficient supply chain processes. The needs grow with expansion into international trade, so you need warehousing services. The above guide highlights the benefits of warehousing services for international trade.

Are you looking for a warehousing service? Cordova Brokerage is here to help!

We’re strategically located within the US/Mexico border for convenience when exporting products. Our staff offer inventory control, logistics management, and security over the warehouse space. You can trust our team with your warehousing needs as we help your business grow.

Contact us today for a corporate statement.

Posted on

Supply Chain Vulnerabilities and Changes on the Horizon— A Customs Broker’s Perspective

Aerial view of container cargo ship in sea.

Hundreds of cargo ships hover out at sea, waiting, floating quietly, unable to port. Thousands of goods sat there, far from their destination. These scenes were real, and they caused a stir in the markets. The images took hold of the news cycle in the Fall of 2021 and began circulating concerns about supply chain chaos in our midst. Those working in the import and export business might have had a preview of some of this as various conditions began causing backlogs, labor shortages, and other problems. 

So what’s all this about? What does this have to do with exporters and importers of goods? 

Here’s what we know. 

The Tangled & Fractured Supply Chain, The View From Here

It’s no secret that covid struck a blow to what seemed to be a relatively robust economy and normal-flowing supply chains. The virus wasn’t just the normal jab to the chin, it went for the liver shot too, bruising the supply lines from different directions. Supply chains are fragile, intricate, and very much depend on the labor of people involved in every aspect of production and trade. 

If you mess with one part of the chain, the ripple effects are felt throughout. 

When the pandemic hit, supply chains were the first major indication to U.S. consumers that this virus was not just another over-blown scare tactic by the nightly news. Americans began to see the shelves of the supermarkets a little emptier than usual and then, a lot emptier, and all of a sudden hand sanitizer vanished from the face of the earth. 

For people in the import and export business, the incoming chaos was detectable on the horizon as early as January and February of 2020. It was then that the virus had started to spread in China and slowly trickled into the production of many essential goods manufactured there. 

In late 2021, people are still referring to the mysterious supply chain shortages in day-to-day conversations. The average American encounters these effects in a myriad of ways, such as short-staffed restaurants, longer-than-usual wait times when it comes to purchasing tech products, making vehicles, car rentals, home construction, and even DIY home projects, as well as access to skilled laborers and workers.

Some have narrowed down the shortages to a couple of major pain points:

  • Computer chip (semiconductor) shortages
  • Port congestions
  • Labor shortages at the ports
  • A shortage of truck drivers to drive goods cross country 
  • Skilled labor shortages across all sectors 
  • Backed up supply in manufacturing plants 
  • Heightened consumer demand after a year at home

 Stuck at Sea — Cargo Ships Floating of the Coast of America’s Port

The Port of Los Angeles is often known as “America’s Port.” That’s because it is the biggest and busiest port in the country— founded in 1907 and active ever since. This large port extends across 7,500 acres of land and water along the coast. It is through this port that thousands of goods enter the country and make their way into supermarkets, stores, and shelves. The port handles over half of U.S. imports, and yet, 65 cargo ships were stuck on the water in September 2021 waiting to dock.

What does this all mean?

On the ground, it appeared to be one continuous blame game. Some blame the dockworkers for not unloading fast enough, others blame a shortage of truck drivers for not clearing out the docks, and still, others blame more internal workings of the supply chains, varying covid-19 protocols across countries, increased restrictions, lack of supply, etc. In the end, some may argue that it begins with policy—that it has really been one domino after another that has acted upon the many layers of the supply chain.

So What Do Supply Chain Shortages Mean For Me?

Well, it depends. As of this writing, the supply chain shortage has manifested itself differently for everybody. For some people it means waiting on that home renovation project, for others it means holding off on buying that new car, and still for others it means being unable to find workers to staff their restaurant. 

For the nation at large, it means there is likely a link to a labor shortage, which means that everyone will see some effect of this in their lives, in some form or another. 

What Does All This Mean For Importers? 

As a brokerage company, we work with many clients that import or export goods. Amidst the dizzying changes and all the rest, importers and exporters are having to adjust and improvise. 

Some people argue that an over-reliance on imports meant that the U.S. was dependent on foreign goods. That dependence has been partially responsible for the situations we face today, and that it also poses a risk to the supply chains, which become vulnerable to outside conditions. For example, most of the semiconductors are produced in Asia and any backlog of production there will impact various sectors in the United States— from car manufacturers to the production of home appliances. 

The Guardians at the Supply Chain Gates

As brokers, we man the gates at the supply chains. That is, we do security, act as the liaison between importers and exporters and the Customs Border Protection Agency, which oversees the incoming cargo and products from overseas, as well as the outgoing goods. Brokers have no real control over the markets or the breakdown of the supply chains—we stand guard and make sure compliance is met by anybody taking goods out of the country or bringing them in. 

Are You an Exporter or Importer of Goods to the United States? Learn More at Cordova. 

Cordova Brokerage works with people on the ground ensuring accuracy and compliance. Whether the markets ebb and flow, as they do, goods continue to move in and out of our border and we are here to safeguard that process and complete the process accurately.