Logistic solutions: speed to market becomes a critical factor.

For Latin American businesses competing in the global arena, speed to market is a critical advantage. Perishable fruits, vegetables and flowers can be shipped quickly from Latin America to major North American and European destinations. Other "northbound" cargoes include textiles, apparel and a variety of manufactured products.

"Because of global competition, Latin American manufacturers and companies are being forced to move things quickly and really begin to adapt to a just-in-time manufacturing and distribution concept," says John Menna, vice president, marketing UPS Latin America and Caribbean. "Latin America has the inherent advantage of being close to the United States, but if goods move slowly, Latin companies are not leveraging the proximity advantage they have to the largest consumer market in the world."

Fast, effective shipping is also essential for multinationals in North America, Europe and Asia to serve their business and consumer markets in Latin America. "There is no doubt--speed is the very essence of our business in both directions, north and south," says Ron Young, vice president, Latin America, Menlo Worldwide Forwarding. "An integrated full-service global solution is critical in today's market. Trade is not regional any more-it's global."

Integrated Solutions

Integrated logistics solutions help shippers speed the flow of goods through the Americas--overcoming challenges like the growing U.S. emphasis on cargo security. Companies like UPS, Menlo and DHL also provide customers with the ability to trace and track shipments using online software applications, helping managers make better ordering, inventory and shipping decisions.

United Parcel Service offers UPS Trade Direct[SM] Air and Ocean services to streamline the movement of freight and packages. These bundled solutions allow customers in certain industries to pre-label consumer products at the point of origin, end ship them directly to the end retail store. "This shaves costs throughout the supply chain," says Albert Oses, business development manager, UPS supply chain solutions, Latin America. "This lets the retailer get products like Brazilian shoes faster, while reducing inventory requirements."

UPS Trade Direct[SM] Cross Border is an international trade solution that streamlines the movement of freight and packages from Mexico into the United States. UPS also offers a supplier management product that helps a manufacturer consolidate orders from multiple suppliers. "We manage the whole process and shorten the supply chain," says Oses.

Menlo Worldwide Forwarding, formerly known as Emery Forwarding, began operating in Latin America more than 30 years ago. Since then, Menlo has developed an extensive freight transportation network in Latin America that today totals 53 strategically located offices in 16 countries. Menlo's newest offices are in Manaus, Brazil, and the Port of Manzanillo, Mexico.

From a key air cargo gateway in Miami, Menlo offers consolidated services to worldwide destinations. As an integrated forwarder, Menlo Worldwide Forwarding maintains strong alliances with all major cargo and commercial carriers, and also controls a dedicated fleet of cargo aircraft in North America. Its extensive heavyweight cargo network in Latin America enables the company to provide overnight premium service to the region. CNF, Menlo's parent company, is a $5.6-billion company of global supply chain services with businesses in regional trucking, airfreight, ocean freight, customs brokerage, and global logistics.

DHL, a leading global express and logistics company, recently launched a new image campaign in Latin America called "Mas," to communicate DHL's ability to provide a single point of contact for logistics and transportation services.

DHL, which recently completed its acquisition of Airborne, Inc.'s ground operations in the U.S. express delivery market, has selected its Plantation, Florida, office to become the company's headquarters. "After careful consideration, we have determined that, because of the pan-regional responsibilities of the headquarters, the optimal location is South Florida," says Chief Executive Officer John Fellows. "We expect to make a significant investment in our facilities and operations in South Florida."

With global expertise in solutions, express, air and ocean freight and overland transport, DHL combines worldwide coverage with an in-depth understanding of local markets. For instance, DHL Express was selected by Oracle Corporation to handle the technology company's shipping services in the U.S., as well as a greater share of shipments to Europe, Asia and Latin America. DHL's harmonized international network links more than 220 countries and territories worldwide.

Ocean transportation

In terms of ocean transportation, Latin American companies have several strategic advantages in shipping products to the United States. These include quick transit times and in most cases, multiple weekly sailings. Ocean shippers like Seaboard Marine, Hamburg Sud and Intermarine can also handle a wide diversity of cargoes, facilitating trade around the world.

Seaboard Marine has been serving the Caribbean, Central and South America for 20 years. Today, Seaboard serves more than 22 countries in the Caribbean, Central and South America with 29 dedicated vessels, as well as thousands of containers. The company's specialty equipment allows great flexibility to carry cargoes from containerized to large earthmoving and hydroelectric units.

Seaboard's main operations are based at the Port of Miami where the company manages an 80-acre private terminal that operates 24 hours per day, seven days per week, and 365 days per year-a major convenience for customers. Seaboard has recently enhanced its services through the purchase of a second Liebherr crane that helps keep vessels on schedule.

Seaboard Marine also has port operations in Houston (Jacintoport), Philadelphia (Penn Terminals), Fernandina Beach, Ft. Lauderdale (Port Everglades) and New Orleans. Seaboard recently opened an office in Mexico City that focuses on northbound cargoes from the west coast of South America. Seaboard recently added weekly sailings to St. Maarten and St. Kitts from Miami and to Ecuador from Miami and Houston.

Hamburg Sud has invested heavily in modern integrated reefer technology to bring products like fresh chilled beef from Argentina and Uruguay to North America. "While Latin American quotas for beef shipments to the U.S. are relatively small, the long-term prospects for growth are encouraging," says Frank Larkin, senior vice president, Latin American Services, Hamburg Sud North America. "Our vessels, custom built for the trade within the last two years, also reflect a steady growth in overall shipments of refrigerated cargoes from Latin America, including seafood and fruits."

The export market from Brazil continues very strong northbound, says Larkin, and Hamburg Sud has added a third string of three vessels to its East Coast Inter-American operations to meet the demand. Northbound trade volumes from Chile and other West Coast nations have been positive while southbound shipments have lagged, says Larkin. Redressing resulting equipment imbalances on both coasts is a continuing challenge.

Latin American trade with Asia is also surging and Hamburg Sud has positioned itself to service this demand with the acquisition of Kien Hung trade between South America and Asia via South Africa.

Intermarine's heavy lift capacity has allowed the shipping company to service the active oil and gas industry in Trinidad & Tobago, Brazil and Peru. The Industrial Challenger recently carried a large shipment of project cargoes from Houston to Pluspetrol's Camisea gas project under construction in Peru. In addition, Intermarine has transported power generation equipment and reels of offshore flexible pipe for Brazil's oil and gas industry.

Another Intermarine vessel, the M/V Industrial Crescent, transported 17 locomotives for the Ferronorte SA railroad company of Brazil from Savannah, Georgia, to Santos, Brazil. The New Orleans based company is also shipping large windmill blades used for power generation from Santos to Houston.

Intermarine is a worldwide provider of ocean transport, as well as inland heavy haul transportation services for breakbulk, specialized project and heavy lift cargoes. With a fleet of two dozen multipurpose vessels, including seven heavy lift vessels, the company offers twice monthly service from the U.S. to Brazil and fortnightly service to the West Coast of South America.

A growing port

Port Everglades currently ranked the 12th busiest container port in the United States-continues to enhance its services to the market. Chiquita Brands Co., North America, is establishing a container cargo terminal at Port Everglades in Fort Lauderdale. "Our move to Port Everglades will result in improved efficiencies for facilities, inland transportation and ripening," said Raul Fernandez, vice president of distribution center operations for Chiquita Fresh North America.

Chiquita is expected to handle approximately 30,000 containers in the first year of operation, including bananas, plantains and melons, as well as exporting general commercial cargo. In addition, Chiquita will operate a fresh produce ripening and regional distribution facility at the port. "Chiquita and its Great White Fleet maritime division are a welcome addition to the growing mix of international carriers calling at Port Everglades," says Port Director Ken Krauter.

In addition Mediterranean Shipping Company S.A. (MSC) is negotiating a lease for a 36-acre dockside container terminal at Port Everglades. The terminal is expected to generate approximately one-million tons of cargo annually with two weekly services at Port Everglades, according to MSC officials.

FOR MORE INFORMATION

DHL www.dhl.com

Hamburg Sud: www.us.hamburg-sued.com

Intermarine: www.Intermarineusa.com

Menlo: www.emergyworld.com

Port Everglades: www.seaboard.org/port

Seaboard Marine: www.seaboardmarine.com

UPS: www.ups.com