Logistics

Freight Infrastructure & Freight Insurance

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Infrastructure-United-States-Under-Construction-600x345

Building a Stronger America project was released on February 12, 2018. The project emphasizes third main points which is to build fast, build for the people, and build for the future.

Building Fast:

The Administration proposes a $1.5 trillion investment to correct America’s crumbling infrastructure and prepare America for better opportunities. The goal would be to fix the infrastructure deficit if Congress approves this legislation. “We will fix the broken permit process, so America can become a global infrastructure leader.” An example they used was when the Empire State Building was constructed it only took a year. Now to get an approval for a highway it takes at least 10 years. The permitting and approval process needs to be less than two years.

Building for the People:

The Administration would like to remove from the Federal Government the decision making of the projects. They would like to put into States hands this decision. The plan would delegate $100 billion to the use of State, local, and private investment.

Building for the Future:

$50 billion would be dedicated to the rural areas of America to address unique infrastructure challenges, rebuilding and modernizing bridges, roads, water and wastewater assets, water resources, waterways, power generation assets, and broadband. $20 billion would spur competition around bold, innovative, and transformative infrastructure projects to improve future infrastructure. The proposal would be committed to generate new projects that would increase employment and boost the demand for labor.

What impacts would this project have on the freight industry? Would it increase the demand for freight and make the transportation for freight quicker? Would this be a positive impact on the livelihood of millions through the US? Not only will there be an increase in freight transport but the need to protect this freight while in transit will be an integral part of freight transport. Freight Insurance has always been the most import part when transporting freight. Freight Insurance minimizes the risk and freight insurance demand has increased by billions of dollars every year. Read about us http://www.freightinsurancedirect.com

Written by Iris Arden (Ramon Inc.)

THE LONGEST RAILWAY FREIGHT ROUTE IN THE WORLD

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The first direct freight train service from China to the UK arrived in London on January 18 of 2017. The journey took 7,456-miles and 18 days to complete. The new train is considered the modern-day Silk Road. This new route has made London the 15th European city to have a railway route connection with China.Rail

Nine countries are connected during this route: China, Kazakhstan, Russia, Belarus, Poland, Germany, Belgium, France, and United Kingdom.  The journey is longer than Russia’s famous Trans-Siberian railway, but shorter than the China-Madrid link. With cheaper services in comparison to air transportation and quicker delivery than ocean transportation, the new train railway successfully brings a new opportunity for growth.

China has become one of the world’s biggest exporters amounting to over $2.28 trillion in 2015. With President’s Xi vision to a brighter future for China and the world, he’s work is just beginning. There are already plans for another 20 European rail freight routes which will increase their export potential even more.

Written by Iris Arden (Ramon Inc.)

Sources:

http://www.thehindu.com/news/international/first-direct-london-china-train-completes-12000-km-run-in-20-days/article18299736.ecehttp://money.cnn.com/2017/01/18/news/economy/china-uk-freight-train-yiwu-london/index.htmlhttp://www.independent.co.uk/news/uk/home-news/first-direct-train-china-to-uk-arrives-east-london-yiwu-city-barking-channel-tunnel-a7533726.htmlhttp://www.bbc.com/news/business-38654176

Food Runs the World

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Food provides almost one in three of the world’s population with a livelihood.  From restaurants, supermarkets, entertainment, food runs the world.

0ed6f43f6f27e75e3a92e0443cf18312--grilled-avocado-avocado-mozzarellaAgriculture, food, and related industries contributed $992 billion to the U.S. gross domestic product in 2015. In 2016, 21.4 million full and part-time jobs were related to agricultural and food sectors composing 11% of the total U.S. employment. While employment in agriculture and food-related industries supported another 18.7 million jobs. Food service locations accounted for the largest share with 12.2 million jobs with food/beverage stores supporting 3.2 million jobs. And the remaining agricultural-related industries together added another 3.3 million jobs. In 2017, the Bureau of Labor Statistics, which refers to restaurants as food services and drinking places, informed that sit-down restaurants compose 50% of the jobs; while, fast food restaurants composes 37%.

In 2016, America exported $24 billion in soybeans, $17 billion in meat and poultry, and $11 billion in corn.  And in imports, it was $130 billion with food variations from fish and shellfish to tea. With the high volumes of exports and imports, the demand for refrigerated containers and trucks has increased. According to the Maritime Research, Consulting and Financial Advisory Services (Drewry), the demand for refrigerated transportation will increase by 17% within 3 years.

And as the demand of food increases, so does the risk of food scarcity. With climate change affecting crops and studies predicting by the year 2050 deaths due to starvation, new strategies to maintain the world’s current population with enough good supply has become a challenge.

Although America has not faced agricultural hardships, other countries have. For example, Japan has included buckwheat alongside rice as part of their food culture; which means eating soba noodles has now become a part of being Japanese. France, India and Italy have included lentils and beans alongside wheat.

Food is at the center of almost every culture, a big part of the world’s economy, and a necessity to live.

Written by Iris Arden (Ramon Inc.)

Sources: https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy/

http://www.bbc.com/news/av/business-39998549/value-of-global-trade-in-food-growing-strongly

https://www.theatlantic.com/business/archive/2017/08/restaurant-jobs-boom/536244/

https://www.thebalance.com/u-s-imports-and-exports-components-and-statistics-3306270

https://www.washingtonpost.com/news/energy-environment/wp/2016/03/02/food-scarcity-caused-by-climate-change-could-cause-500000-deaths-by-2050-study-suggests/?utm_term=.d730fde0e3ae

https://ideas.ted.com/what-americans-can-learn-from-other-food-cultures/

Where are the Truckers?

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Truckers are a key part of freight transportation. 70% of all cargo is transported throughout the US highways. According to CBS News, the freight world needs to hire about 90,000 truckers a year to keep up with demand. And if truckers drive America’s economy, this is an alarming concern.

“A Shortage of Trucks is Forcing Companies to Cut Shipments or Pay Up” by Jennifer Smith from the The Wall Street Journal, really emphasized the growth in cargo freight in 2018. Not only did December of 2017 hit record levels in freight volumes, but 2018 has started out with a bang. The amount of freight needed to be transported is way more than the number of truckers available to transport it.

For example, in the spot market, about 10 loads were waiting to be moved in comparison to the previous year that had only 3 loads that were waiting to be transported. Truckers with the weather conditions have raised their price; depending on the company’s location and pick up wait time, the available truckers will turn down the job. The weather conditions have imposed great difficulty with the trucker’s transit, and companies in Canada are willing to pay double for truckers that are willing to make the trip.

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Keep in mind that this is the slow season, so imagine when the freight market picks up in April. To keep with demand, companies are increasing truckers’ salaries and benefits. The lifestyle of a trucker isn’t an easy one, but companies are investing hard to attract more and more drivers. With a median salary of $41,000, many people are turning to trucking to live a better lifestyle, but hiring agencies still need to work hard to convince thousands more to join in. But even with all these actions, statistics still show that demand will outreach the drivers.

Written by Iris Arden (Ramon Inc.)

The Age of Google

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In the age of the internet there are so many options available for just about anything. As consumers, it is imperative that we do our due diligence and research before making any purchases. For example, you may do research on the company’s history, read product reviews, or ask a friend for a recommendation.

world-of-internetWhen it comes to cargo insurance, the same is true. Many cargo insurance companies advertise on Google; however, Google is not a regulatory body. They are not responsible for whether a company is conducting unlicensed activity or not. More than just seeing a nice ad or a beautifully designed website, it is in your best interest to look past the surface. Here are three questions you can ask to help you identify a quality cargo insurance provider.

  1. Longevity – Do they have proven success and longevity in the industry?

Ramon Inc has been in business since 1982. We insure billions of dollars of cargo each year and work with the world’s highest rated insurance carriers. Our effectiveness in the industry has been proven and stands the test of time.

  1. Customer Service – Are they responsive to your needs?

Ramon Inc is centered around customer satisfaction and making our clients lives easier. With so much to do while running your business, you don’t need another hassle. Our company pioneered the technology that allows clients to issue their certificates online, anytime, anywhere. Additionally, our clients are consistently impressed with our quick turnaround time for any requests.

  1. Licensed – Are they licensed to sell insurance?

Ramon Inc. is licensed every state which includes major states: NY, CA, FL, GA, OH, NJ, MO, MI, NV, MA, PA, CO, TN, IN and other states. It is illegal for any company to sell you a certificate of insurance if they are not licensed. Insuring your cargo with a company who is not licensed is a substantial risk because in the even of claim, you will not be protected under any laws.

The staff at Ramon Inc are experts in the cargo industry. Contact us today and we would be happy to advise you further.

Written by Iris Arden (Ramon Inc.)