Earthblog

On April 20, 2010, an explosion occurred on a BP drilling rig causing 11 deaths. As of today, the leak, located in the Gulf of Mexico continues to reek havoc on our natural resources and could potentially threaten shipping, production and natural gas in Alabama, Louisiana and Mississippi. Industry experts are nervous about the spill spreading west towards New Orleans, which will obstruct ships entering and leaving the Mississippi River-the largest waterway for U.S. commodity ships.

The logistics industry could feel the impact and additional risks associated with this disaster. Ships moving cargo through this major port face the dangers of tracking oil and potentially impeding clean-up efforts, says one BP official.

The danger of fire is always imminent when oil slicks are present in the water. The slicks could also give off toxic fumes, which would put workers in danger.  So far, two gas platforms and one drilling rig has been evacuated.

The leaks, which are located 5,000 feet from the surface of the water are currently spewing approximately 210,000 gallons per day, according to an earlier estimate by The National Oceanic and Atmospheric Administration. A staggering amount when compared to the Alaska Exxon Valdez disaster that occurred in June of 1989. So far, a more accurate estimate has not been established.

As of today, ship traffic has been not been affected, says a Port of New Orleans official. Two clean-up stations have been posted by The Coast Guard close to the Mississippi River for vessels that may encounter the spill. So far, the main channel to the river (The Southwest Pass) has not been affected by the spill and no commercial ships have had to use them.  The Mississippi River has anywhere from 5,000 to 6,000 ship calls annually.

BP (which is financially responsible for the clean-up) continues to seek ways to plug the leaks.    NOAA's website provides updates where you can track and view photos and videos of the Gulf of Mexico oil spill.

Tags: shipping | logistics | oil spill | import | export

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by Angela Cavallari Walker

In the wake of Haiti's deadly earthquake on January 12, 2010, an estimated three million people are in need of food, water and medical supplies. The unconfirmed homeless rate is anywhere from 200,000 to 1.5 million, says the American Red Cross. So far, fundraising campaigns have been successful, but that is just the first step of many when it comes to the tedious task of delivering these products into the hands of those in dire need.

Logistics volunteer organizations such as the American Logistics Aid Networks or ALAN play a critical role in the herculean effort to get these items into areas ravished by disaster. ALAN acts as the primary contact for donated products, equipment, and services such as warehousing, material handling, and transportation. The non-profit organization was founded in response to the aftermath of Hurricane Katrina.

Back then, there was not a system in place to communicate and distribute disaster donations to areas most impacted by devastation. “I saw most of the relief groups have things that they did not expect to arrive," says ALAN President, John Menzies. ALAN developed a system using an Aidmatrix platform that enables both state federal relief agencies to post supply chain needs. The portal matches NGO needs to ALAN sponsors and volunteers. An NGO or a non-governmental agency refers to any group with no representation of government. “As an organization we want to support a specific need by an NGO," says Menzies.

Currently, military and government agencies control most of the supplies that go in and out of Haiti.  Menzies describes Haiti's logistical status as a pull situation rather than a push. For Haiti, the real challenge right now is priority setting and getting supplies there. Overall, Menzies has been pleased with the progress in Haiti as donations continue to flow in through product matches. “We''ve helped our NGOs connect and helped some people on the ground by enabling relationships to get things done.”

Click here to view and track the logistical progress of these supplies delivered to Haiti

Tags: Haiti | logistics | operations | air freight | shipping

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by Angela Cavallari Walker

In a new study titled: “E-Commerce Trends for 1010” conducted by FFP Global, found that online businesses and retailers are more likely to use regional fulfillment companies.  According to the latest study, the largest cited reason for this trend is the lower shipping costs and the faster turnaround in delivering these products to consumers.

Regional fulfillment companies such as Atlanta-based,  SBC Fulfillment are able to offer low-cost shipping charges while increasing their clients'''' operations.  SBC''s SmartTurn Warehouse Management System is an invaluable tool that allows fulfillment customers to order, ship and track those orders all online from anywhere. “In talking with our customers, we found that technology played a big role in providing the most comprehensive fulfillment process”, says SBC President Brian Schoenbaechler.  SBC''s 60,000 square feet of warehouse space is strategically located near Hartsfield-Jackson International Airport and the heart of Atlanta''s busiest industrial park.

FFP projects that our current economic situation will continue to pressure online retailers into meeting the demands of deal-seeking consumers and faster shipping windows.

The study also found that fuel costs were a big driver for retailers to seek regional fulfillment providers.  For e-commerce companies this solves two problems: reducing fuel surcharges and increasing delivery times.  Another fulfillment trend that will continue includes the ability to drop-ship directly from manufactures to retailers'' customers.

In order to effectively drop-ship, retailers need a comprehensive order management and customer contact system that can seamlessly communicate with suppliers.  "We work closely with our merchants to ensure the most accuracy," says Schoenbaechler.

Customer service and mobile commerce will continue to play a role as regional fulfillment companies strive to meet these challenges.

To learn more about SBC Fulfillment click here

Tags: export | fulfillment | e-commerce | shipping | georgia | trends | outsourcing | import

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