Hawaii: An Ideal Hub for Trade

Hawaii: An Ideal Hub for Trade

hawaii trade hub

(Click the map to enlarge)

Hawaii is home to ten commercial harbors, eleven commercial airports, and roughly 2,500 miles of roads, making it an ideal hub for trade. In 2018, Hawaii exported $660 million of Made-in-America goods worldwide. The top contributors to the state’s economy are real estate, tourism, construction, and government, including the U.S. military. The island is now the commercial and transportation hub for intra-island commerce and the primary link to the United States mainland, the Far East, and the Pacific Rim economies.

The port of Honolulu is located just three miles from Honolulu International Airport and supplements shipping and intermodal transportation of people and products. The port has come a long way since a sunken ship hull was used as a wharf in the early development of the harbor. The port handles roughly 11 million tons of cargo annually and processes dry and liquid bulk, breakbulk cargo, and passenger and fishing ships. The harbor is also a vital passenger destination for leisure, research, and fishing vessels.

Roughly equidistant between the pacific coast on the U.S. mainland and Japan, the Port of Honolulu serves as a refueling hub for trans-Pacific shipping. Hawaii’s importance to these economies has been solidified as Japan, South Korea, the Philippines, Sri Lanka, and Thailand all maintain consulates on the island.

The 1920 Jones Act requires that all cargo transported between U.S. ports be on U.S. flagged ships, built and mostly owned and crewed by Americans. As a result, only three U.S. flagged carriers with a fleet of twenty combined vessels, specifically designed to accommodate the needs of Hawaii transportation commerce, currently provide regularly scheduled shipping services between the U.S. Mainland and Hawaii.

Hawaii is also home to Foreign Trade Zone #9, which promotes business through on-site services such as customs brokers, shipping agents, tariff reduction programs, warehousing, and offices for the international trade community.

Logistics Plus recently opened a new branch office in Honolulu, Hawaii. The new LP Hawaii branch specializes in the movement of project cargo, international freight, warehousing, FF&E projects, and other supply chain-related projects. If you ship to or from Hawaii, or if you have a supply chain that spans the Pacific Ocean, contact us to learn more.


NMFC Changes effective August 13, 2022

NMFC Changes effective August 13, 2022

NMFC-Guide-BookThe Freight Classification Development Council (FCDC) has discussed new amendments to the National Motor Freight Classification (NMFC®). These NMFC changes are effective 08/13/2022.  Some notable changes are listed below.

Subject 1 – Flat Glass; or Glazing Units, glass, not in sash – Items 86700
and 86960
Subject 2 – Loudspeakers or Speakers – Item 62420 – Changed to a Single class, 125
Subject 3 – Weatherstrips or Weatherstripping – Item 196955
Subject 4 – Fittings, electrical conduit, NOI – Item 62010
Subject 5 – Ironing Boards
Subject 6 – Glass Fireplace Guards or Screens – Item 69455
Subject 7 – Hitches or Couplers, vehicle, not wheeled – Item 192030 – Changed from a single class 70 to a full density item.
Subject 8 – Organs, Pianos, Keyboards or Synthesizers, electronic or
digital – Item 139165
Subject 9 – Beds, disappearing folding type, door, recess or wall, or
Murphy Beds – Item 79720
Subject 10 – Specifications for Wood Boxes
Subject 11 – Item (Rule) 280 and Item (Rule) 680 – Flexible Intermediate
Bulk Containers (FIBCs)
Subject 12 – Item (Rule) 580 – Labeling, Marking or Tagging Freight – The terminology and requirements in Item 580 are amended to be consistent with today’s practices.
Subject 13 – Lights (Lites) and Frames, boat porthole or deck; or Glass,
automobile or boat, including Windshields or Windshield Glass – Items 25100 and 86630
Subject 14 – Plastic or Rubber Tire Patches, Plugs or Liners – Items
157213 and 157215
Subject 15 – Silica Gel, including Silica Gel Catalyst or Desiccants –
Item 46050
Subject 16 – Mulch, horticultural – Item 138720 – Changed to a single class 70.
Subject 17 – Seats or Backs, chair or stool
Subject 18 – Chair Parts, molded paper or pulp – Item 82845
Subject 19 – Mail – Item 133940
Subject 20 – Item (Rule) 420, Sec. 3 – Explanation of the ‘0’ Class
Subject 21 – Balls, tennis – Item 15590 – Changed to two tier class item based on density of Less than 6 pcf or 6 pcf or greater
Subject 22 – Item (Rule) 680 – Requirements for Pails Unitized or Secured on Lift Truck Skids, Pallets or Platforms – amended by the addition of new paragraph 3 in Sec. 7(b), which provides detailed requirements for the unitization or securement of pails on lift truck skids or pallets.
Subject 23 – Item (Rule) 680, Sec. 9(b) – Strapping Requirements for Articles Exceeding 48 Inches in Height – Item 680, Sec. 9(b) is amended to require the use of at least two straps around the perimeter of two or more articles each exceeding 48 inches in height when tendered side-by-side on lift truck skids or pallets.
Subject 24 – Telescopes, NOI, toy or other than toy – Item 58350
Subject 25 – Manikins, medical or rescue training; or Kits, medical
training aid – Item 56825
Subject 26 – Bins, revolving – Item 82340
Subject 27 – Pads, heating, electric – Item 62640
Subject 28 – Bed Kits, unassembled, unfinished wood, including Loft Bed Kits – Item 81360
Subject 29 – Bottle Openers, NOI – Item 100560 – Changed from Single class 77.5 to a two tier class based on being less than 12 pcf or 12 pcf or greater.
Subject 30 – Pens or Markers, writing
Subject 31 – Bins, hardware, small parts storage or tool, compartmented,
steel, not thinner than 24 gauge – Item 79085
Subject 32 – Toilet Bowls or Toilet Tanks – Items 159505 and 159510 – These Items canceled and moved into Plumbing Good #158880. A full Density item.
Subject 33 – Package 1018
Subject 34 – Item (Rule) 225 – Definition of or Specifications for Pails
Subject 35 – Miscellaneous Packaging Provisions
Subject 36 – Miscellaneous Packaging Provisions
Subject 37 – Miscellaneous Packaging Provisions
Subject 38 – Miscellaneous Packaging Provisions
Subject 39 – Specific Provisions for Commodities Regulated as
Hazardous Materials – Items 12780, 14160, 14700 and 14770
Subject 40 – Refrigerants, NOI, other than gas – Item 169270 – Amended to restrict its application to materials not required by the DOT to bear a Hazard Class or Hazard Division label or placard. New Note, item 169271 is established to clarify the item’s application and to direct the Classification user to other items for classes applicable to such hazardous materials.
Subject 41 – Cancelation of Numbered Packages
Subject 42 – Cancelation of Numbered Packages
Subject 43 – Obsolete Provisions – Multiple Items
Subject 44 – Obsolete Provisions – Multiple Items
Subject 45 – Obsolete Provisions – Multiple Items

Additional detail is included in the DOCKET 2022-2 bulletin. As always, please contact us if you have any questions.


How Logistics Plus Resolves Inventory Dilemmas

How Logistics Plus Resolves Inventory Dilemmas

inventory dilemmaA recent article published by CSCMP’s Supply Chain Quarterly, written by Jonathon Byrnes and John Wass, suggests that implementing a balanced inventory management strategy is essential. The biggest question facing managers today is whether their supply chains should be just-in-time (low inventories) or just-in-case (high inventories).

You can read the full article here: How To Resolve Your Inventory Dilemma.

The article focuses on three points concerning inventory management dilemmas. They are presented here with a note under each regarding how Logistics Plus can help.

  • Make the right promises. A company should offer different service intervals based on the customer profit segment. For example, profit peak customers with steady demand provide your core profitability. These customers should be able to get what they need at any time. Service intervals for profit peak customers should be one-day or less. On the other end of the spectrum are profit drain customers with variable demand. These customers have erratic demand, and it is not necessary to hold high levels of local stock. Instead, these customers should have a service level of about three days, enabling you to bring stock in from a central warehouse. Figure 1 (below) shows the different service intervals based on customer segments.

As a company known for saying YES, not NO, Logistics Plus works with each customer based on their exact needs. We understand that no two customers are the same. Our team offers warehousing and distribution services that are just the right size, in just the right place, for just the right length of time. You don’t pay for space you don’t need. We can diagnose your warehousing challenges, develop inventory management solutions, and then make those solutions work when it matters.

  • Manage your account relationships. Customizing your service intervals to match profitability and demand will help keep your inventory low and service levels high. The key to managing account relationships is to be clear about the “rules” of how you will serve your customers. If you keep your promises, retaining your clients becomes more manageable. If profit drain or profit desert customers want the fastest service available, they must pay compensatory prices.

Logistics Plus is committed to providing the best warehousing services possible. Our values reflect our belief in the highest level of service and technology. A focus on delivering the highest level of savings and efficiency is why our clients become long-term customers. We work with customers to ensure their goods arrive at their destination on time and in perfect condition. We provide excellent service and an unwavering commitment to helping them achieve their goals.

  • Manage your supply chain. Holding the proper amount of inventory for each customer segment is manageable. By tailoring inventory strategies to each customer profit segment, managers can boost profitability by providing the right set of incentives for each profit segment. For example, Profit peak customers should get consistently fast service with a constant priority on inventory. Profit desert customers should also receive appropriate service promises that they can rely on, giving them an incentive to grow their business and profitability to profit peak status.

As part of your team, we can look up and down your supply chain, identify the weakest links and repair them. You can rely on our team of industry-leading warehouse experts to solve your inventory challenges and significantly improve performance while positively impacting your profitability. By determining the current performance of your supply chain, we can optimize your inventory levels and set up distribution facilities to help you save.

The notes above are just a few thoughts regarding commonly faced inventory dilemmas. Logistics Plus is ready and willing to work collaboratively with our customers to create value and customized solutions that fit their needs. Contact us today to learn more.


Shippers & Logistics Plus: Let’s Innovate Together

Shippers & Logistics Plus: Let’s Innovate Together

Shippers & Logistics Plus: Let's Innovate TogetherA recent article published in Logistics Management magazine and online at Supply Chain Management Review, written by Sara Banks from Accenture, suggests a strong collaboration between 3PLs and shippers can help to bring innovative solutions that will benefit both in the future. You can read the full article here: Time For Shippers & 3PLs to Innovate Together.

Accenture’s research shows four capabilities shippers want from logistics companies. They are presented here with a note under each regarding Logistics Plus.

  • Accenture - 3PL Capabilities shippers wantEnd-to-end services. Shippers are looking for a one-stop shop for all logistics services. This means that, beyond basic logistics, they want a trusted logistics provider that delivers new services such as advisory and supply chain consulting services, analytics capabilities, e-commerce channel management capabilities, and even algorithms that match demand and supply.

Logistics Plus has evolved by both necessity and design over the past 25 years. As a company known for saying YES, not NO, to unique supply chain challenges, we’ve developed a network of solutions that span the entire supply chain, from procurement to warehousing to final mile delivery. We call this Global Logistics + So Much More. With our 3.5PL and 4PL solutions, we strive to provide the end-to-end services our customers require so that they can remain focused on what they do best: making and selling great products. 

  • Better experiences. Shippers want a logistics partner that knows their business and will work with them to overcome challenges by bringing in customer-centric solutions. Our research revealed the need for 3PLs to build service consistency, flexibility, and responsiveness to create more satisfying customer experiences.

We are hardly perfect, but there is one trait that shippers can expect when they work with Logistics Plus: a contagious passion for excellence. It’s that passion that has enabled Logistics Plus to earn numerous service and workplace awards and to have positive word-of-mouth referrals that have supported our continuous growth. It may seem like a small thing, but every one of our employees is provided a mobile phone with the expectation that our customers need and deserve flexible, 24/7/365 support. The freight never stops moving. 

  • Proactive, data-driven insights. Shippers are eager to partner with 3PLs that have data and analytics capabilities to provide visibility and insights to help them make better supply chain decisions. For example, digital twin capabilities that tap into data to simulate supply chain impacts will help 3PLs guide shippers in decisions with more certainty.

We like to point out that today, Logistics Plus is as much a technology company as a logistics company. And that is not by accident. The demands of our customers have driven us to make substantial investments in technology and business intelligence applications. Our global supply chain control towers and business intelligence tools are world-class. We know that information and insights are just as critical in today’s supply chain as are shipments and freight. 

  • Purpose aligned to their values. Increasingly, shippers are choosing to work with businesses that are more integrated with theirs and share their values. For example, in the logistics space, sustainability is a key issue and becoming a “must-have” requirement for all players.

Shippers looking to align themselves with a 3Pl focused on employee diversity and environmental sustainability will find that Logistics Plus shares those same values. The 50 country flags that fly on top of our global headquarters, each representing the nationality of one of our employees, showcase our celebration of diversity. The fact that we were the first global 3PL to receive Plastic Neutrality Certification for offsetting 19 tonnes of plastic use in 2020 is a testament to our commitment to making the world a better place. 

The notes above are just a few thoughts regarding these four capability areas that are important to shippers. Logistics Plus is ready and willing to work collaboratively with shippers to create value and share in the benefits. Contact us to learn more.



NMFC Changes effective August 13, 2022

NMFC Changes effective April 9, 2022

NMFC Changes effective August 7, 2021The Commodity Classifications Standards Board (CCSB) has published a new supplement to the National Motor Freight Classification (NMFC®). These NMFC changes are effective 04/09/2022.  Some notable changes are listed below.

Subject 1 – Cookware, Items for cookware made of different metals and alloys were all combined into one item (52880) with a full density class grouping. 52890, 52895, 52896, and 52900 all were canceled.

Subject 3 – Detectors, Fire, Previous Items (61552 and 61555) established class based upon actual value. These items were canceled and replaced by 61550 which establishes a single class of 110.

Subject 4 – Ink, Dry Ink or Toner, Item 101740 was changed from a single class 70 to three density-based classes. Dry Ink Cartridges were removed from 116030 and added to 101740.

Subject 5 – Cables, mechanical control # 39510, Class changed from a straight 70 to a full density item.

Subject 6 – Fruits, Meats, Vegetables, and Dairy Products #76850. Density breaks and classes changed. See Revised Item.

Subject 7 – Cough Drops or Throat Lozenges, #58730, Class changed from 65 to 100

Subject 9 – Tape Friction or Insulating including electrical tape, Items 49450 and 49680 canceled and replaced with 49680 which is a full density scale.

Subject 10 – Oils, Cooking Oils and vegetable Shortening, Item 73238 revised to include Cooking Sprays. Still class 65.

Subject 13 – Door Lites, Sidelites, or transom Lites, Old item 34943 is canceled and replaced with 34250 which has 8 subs based on Dimensions and density.

Subject 14 – Bags, apparel, bedding, clothing, or garment storage, Item 20510 is canceled and replaced by 20580 which is a full-scale density item.

Subject 15 – Foodstuffs: Kernels or Seeds (pumpkin or sunflower), Kernels, and Seeds removed from Item 73238 and moved to new Item 73705 which has three classes based on density.

Subject 16 – Combs, Brushes, Crimpers, Fluters, Straighteners or Wavers; Irons or Wands, Item 61370 is canceled and rolled into Item 62290. Class on 62290 changed from 85 to 125.

Subject 17 – Bins or Shelving, Item 82360 – Bins or shelving is canceled and added to item 82270 – Metallic or Wooden Furniture, which is a full density item. Previously is it was either 150 or 70 depending upon SU or KD.

Subject 18 – Binoculars, Binoculars, Field glasses, opera glasses, etc…now a straight class 150. Class used to be dependent upon actual value.

Subject 21 – Egg Beaters, Item 100520 which was class 85 now canceled, and now egg beaters are part of Tools, hand, kitchen, NOI, a full density item.

Subject 22 – Bayonets, Swords, scabbards, Class changed from 100 to a three-class scale based upon density.

Subject 24 – Definition or Specifications for Crates

Subject 25 – Filters, cigarette, Item 69083, Class changed from 100 to 200.

Subject 26 – Explosives, Item 64300, Item amended to clarify that explosives moving under its provisions ‘must’ be transported in DOT authorized packaging.

Subject 27 – Hazardous materials, ORM-D removed since Shippers are no longer authorized to use these markings.

Subject 36 – Petroleum Xylidine, Item 155460, Item canceled. See Item 45615 – Poisonous or Toxic Materials.

Additional detail is included in the DOCKET 2022-1 bulletin. As always, please contact us if you have any questions.