July/Aug 2013

International Business News
July/Aug 2013
Kansas City Southern Railway
dispatches commercial shipping through
Mexico to port
Also in this issue:
How To Prepare and Ship Your Container
Distribution Key to President’s Excellence in
Export Award Winners
Heartland Exports and Imports
Advertorial
Held & Associates:
2013 Recipient of President’s Excellence
in Exports Award for Export Service
Let us handle your LCL
shipments from the UK in our
UK ocean consolidation; or let
us build a consolidation for your company
– avoid LCL costs, pay full container price.
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Import Operations Manager,
Held & Associates Inc.
ISF – Importer Security Filing requirements now
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government agency requirements –
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816-842-6701 x 215
Please note our contribution to the HOW TO EXPORT – “How to
Prepare and Ship Your Container,” on pg.. 6 of this issue of IBNewsmag.
CALL ANDREA OR PAT (816) 842-6701
ext. 215 or 212 TO SET-UP AND CONTROL YOUR IMPORT CARGO NOW!
International Freight Forwarder
& Customs Broker
Held & Associates, Inc., 1120 Erie Street, P.O. Box 34470, North Kansas City, Missouri 64116-0870
www.held-assoc.com
page 3
July-Aug 2013
IBNewsmag : in this issue
TM
3
Contents / Foreign Trade Zone, Inc.
How to Ship a Container
8
Nexans AmerCable & Holmes Corporation
9
Heartland Index / Americanallia
10
Express Deliveries / KCI Air Cargo Traffic Up
11
About IBNews / 10 Proven Tips for Int’l Sales
12
Kansas City Aviation Department
E
R
Transimpex
7
Y
6
R K A NSAS
IT
Kansas City Southern Railway
FO
4-5
TE
C
Foreign Trade Zone, Inc.
NE
Held & Associates Inc.
IG
O
2
EA
See page 4.
Greater
Kansas City
GR
COVER STORY This edition features shipping to Mexico by Kansas City Southern Railway and its subsidiary
KCS de Mexico.
N TRADE
Z
• First Inland FTZ
in the U.S.
• Largest FTZ in the U.S.
• Strategic Location for
Freight Movement
• Fast-Track Process for
New FTZ Sites
International Business News
July-Aug 2013
page 4
The Kansas City Southern Rail System
Connects World Markets Through Mexico
T
Kansas City to Mexico, a customer first
loads its container on a drayage truck for
KCS’ intermodal center at the former
Richards-Gebaur airbase. Simultaneously, the KCS customer requests service in
the form of a waybill, or more commonly
known as a bill-of-lading, created in the
KCS operating system allowing transport
of the container on the KCS line.
he Kansas City Southern rail system, which includes The Kansas
City Southern Railway Company
in the U.S. and Kansas City Southern de
Mexico in Mexico, through its Laredo
gateway, offers premier rail transporta- The container is checked at the gate by
tion for major manufacturing and con- way of the KCS automated system, and
sumption markets in Mexico.
moves into the holding area, where the
driver drops off the container and chasThis North American rail network ex- sis. At loading time, a KCS yard hostends even further through the three tler hooks up the chassis and moves the
major ports that the KCS system serves container into position next to a waiting
in Mexico’s Gulf and Pacific Coasts, in- train. An intermodal crane hoists the
cluding the southwestern Mexican deep- container from the chassis and onto the
water port of Lázaro Cárdenas.
rail car, one of two north-south trains
that day.
There was a time when many shippers
cringed at the thought of sending cargo Some 150 trucks make their way in and
into and through Mexico. Stolen goods, out of the logistics park each and every
lost trucks, and uncertain delivery times day, along the 2-mile stretch of former
clouded intended safeguards in moving runway, now the rail loading siding.
goods there. That was before KCS purchased and remade a key Mexican line
into a well-tuned carrier.
The trip to the Mexican border takes a
day, while the commercial invoice, waybill and other documents arrive at KCS’
border administrator, Transport Cargo
Services (TCS). TCS creates a “pedimento,” which is a document sent to Mexican
Customs allowing the container to flow
through Mexico on its way to the port.
As the train approaches the border at Laredo, U.S. Customs reviews and confirms
that all is in order, providing validation
of clearance for that pedimento to move
across the border, and clears the train to
move forward. There is no exchange of
locomotives at the bridge as there is with
trucks. The process is simple. Once at
the bridge, a Mexican crew takes over the
locomotive and continues the trip to destination.
What happens to make the shipment secure in Mexico?
Each and every container crossing the
border undergoes multiple gamma ray
inspections, and random inspections to
The KCS rail network passes through
the Mexican border seamlessly - and securely - achieving a remarkable 99.98%
theft and claim free record in Mexico on
its journey to interior points and to the
ports it serves.
Kansas City Southern won the Mexican
railway concession against larger bidders
back in 1997, when the betting was on
the east-west lanes to grow its network
with the north-south NAFTA railway.
Moving a container from Kansas
City to the Mexican border
To move a container of freight from
IBNewsmag TM
© Kansas City Southern
page 5
July-Aug 2013
ND
MN
insure that there is nothing inconsistent The KCS network offers a great alternawith information on the documents.
tive via Mexican ports for large volume
shippers who are seeking additional gateSDsupply chain requireKCS de Mexico implements a balanced ways to meet their
mix of technology and people to achieve ments.
WY
real-time monitoring of the load and its
IBN
security. It employs over 1,200 security
agents across the entire Mexican rail net- This article written in cooperation with Kansas
NEcan be seen at
work to provide added security, while City Southern. More
www.kcsouthern.com.
its multi-layered filtering security model
detects any irregularities throughout the
network.
Omaha
WI
St. Paul
Minneapolis
MI
IA
Chicago
Council Bluffs
IL
Lincoln
CO
Atchison
Jacksonville
Louisiana
Marshall Clark
Topeka
Once the train and the customer’s container reach the port of Lázaro Cárdenas, the customer checks that the waybill
is updated with correct vessel, voyage,
equipment numbers, beneficial owner
and final destination.
Mexico
KS
IN
Springfield
St. Louis
Kansas City
East St.Louis
KY
MO
Amsterdam
O
Pittsburg
Joplin
TN
Neosho
OK
Finally, the container is removed from
the rail car and moved to a N
holding
M area
until all documentation is completed and
terminal fees are paid. If they are not,
TCS is not able to obtain release of the
container to the vessel.
Sallisaw
Heavener
AR
Fort Smith
Spiro
Waldron
Middleton
New Albany
Mena
DeQueen
Nashville
Metro
Denton
Ashdown
Sulphur
Springs
Hughes
Springs
Texarkana
Springhill
Minden
Wylie (future)
Sibley
Redwood
Newton
Bay
Springs
Monroe Tallulah
Natchitoches
Hattiesburg
Alexandria
TX
LA
DeQuincy
Westlake
Houston
Birmingham
Brookwood
Meridian
AL
Waynesboro
Mobile
Delisle
Gulfport
Baton Rouge
West Lake Charles
Rosenberg
Columbus
Tuscaloosa
Palmer
DeRidder
Beaumont
Tupelo
Aberdeen
Sebastopol
Jackson
Winnfield
Kraft
The customs broker then closes the pedimento, informing the customer that the
container’s bond is closed and the container is released and ready for loading
onto the vessel.
Artesia
Louisville
Vicksburg
Gibsland
Shreveport
Bayou Pierre
Dallas
MS
Hope
Jefferson
Alliance
Counce
Yellow Creek
Corinth
New Orleans
Port Arthur
Galveston
Victoria
Robstown
Laredo
Nuevo Laredo
COAHUILA
Corpus Christi
G
Hebbronville
Ramos
Arizpe
Salinas
Victoria
Saltillo
Monterrey
Reynosa
Matamoros
DURANGO
ul
f
México
f
o
Brownsville
Pedro C. Morales
NUEVO LEÓN
TAMAULIPAS
ZACATECAS
Laguna Seca
San Luis Potosí
Chicalote AGS
Aguascalientes
Arellano
Ciudad Valles
RÉ
T
QU
E
Morelia
TLA
XCA
Naucalpan DF Teotihuacan
Ciudad de México
MÉXICO
Puebla
MORELOS
LA
Route Map
Oriental
Xalapa
O
MICHOACÁN
Lázaro
Cárdenas
IC
MÉX
Toluca
Uruapan
HIDALGO
Ahorcado
Huehuetoca
Megamex (future)
Lechería
Z
Mariscala
RA
Celaya
U
CR
Querétaro
Viborillas
Irapuato
Ajuno
O
GUANAJUATO
Escobedo
Silao
JALISCO
COLIMA
Doña Cecilia
Tampico
VE
Guadalajara
Altamira
Miramar
AR
ARIT
Santa Fe
Veracruz
PUEBLA
International Business News
GUERRERO
OAXACA
July-Aug 2013
page 6
How To Prepare and Ship Your Container
The First in a Series of How to Export
I
f you are new to export,
or have limited experience
with shipping, there are certain things that you, the seller-shipper needs to know. To
begin the process you should
agree to work with an experienced, competent freight forwarder (FF), who is willing to
partner with you through the
3. Are there special export licenses, regu- 8. A Value Added Tax (VAT) is the cuswhole process from the quo- lations
required? For the EU, there are tomer-importer’s responsibility requiring
tation stage through getting minimal regulations.
him to think it through, whether it could
paid. Your FF, international
increase or decrease prior to arrival.
4.
For
the
EU
and
elsewhere,
it
is
imporbanker, and your shipping deto have the CE Mark. This may take 9. Getting paid is a key issue. The L/C
partment, are all key to your tant
several months, but is required. Many is the standard, yet requires much docuexport success.
new-to-export think they can get a CE mentation, much of which may not be
1.
The first step in export shipping is
planning for containerization. How will
your products fit into a standard 20 or 40
foot container, versus break-bulk or even
less than container (LCL), is truly important when planning. It may require astute
engineering in the manufacturing process
to fit the product into a container. That
and planning to sell more units so as to
fill a container rather than a LTC load.
For example, one Heartland exporter
manufactures a piece of machinery
that is just an inch or two too wide,
and can only fit 10 into a 40-ft container. If just a little less wide they
could squeeze 20 units in a 40-footer
and cut their freight bill by half.
2. Know precisely who your customer/
consignee is, which must be shown as
Consignee on your bill of lading. Ask
your customer for their preferred Customs Broker contact information. Their
broker should be named as “Notify Party” on the ocean lading to expedite Customs entry and delivery.
IBNewsmag TM
needed. The DDP (cash for documents
terms) is gaining in popularity because it
doesn’t require so much paperwork, but
more trust between the parties is important because the documentation on what
5. Another question to consider in plan- the customer expects is not spelled out as
ning - is it an allowable product for that well as the L/C.
particular country? The EU customer is
responsible to know and obtain the im- 10. For ocean freight, Held often recommends Cost, Insurance and Freight
port license if required.
(CIF) because it transfers risk to the
6. Is it marked and packed properly? buyer once the goods are loaded onto the
Again, the FF should help the shipper vessel, and the seller-shipper controls the
plan for these issues.
freight and delivery. At any rate, the shipper should insure the cargo. If no Inland
7. What are the official Incoterms? Spec- Marine cargo policy, instruct your FF to
ify your terms on your Pro Forma invoice insure against all risks, no deductible,
and on your commercial invoice so there warehouse to warehouse including Genis absolutely no misunderstanding. Sell- eral Average coverage.
ing CIF port discharge is typically best
for exporters. Always specify to be paid in Click here to continue reading the comU.S. dollars. If delivered to the customer’s plete article online at IBNewsmag.com
door, then determine who is responsible
Information provided by Rick Held and John
for duties and taxes.
mark in a day or so, because they had
not considered it. Their freight forwarder
(FF) should have specified that the EU
would need it.
Romp of Held & Associates.
www.held-assoc.com.
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July-Aug 2013
page 8
Distribution Key to President’s Excellence in Export Award Winners
I
n our last edition of IBNewsmag,
we featured four of the six companies in the Heartland that received
the prestigious President’s Excellence
in Exports (E) award
this past May. Two additional outstanding
companies receiving the award include
Nexans AmerCable, Eldorado, AR, and
the Holmes Corporation, Eagan, MN.
Nexans AmerCable Offshore Bridle Systems
didates with the certification process and
provide local marketing and live information sessions.
HOLMES CORPORATION
Advancing Professionals. Delivering Results.
Holmes Corporation
Nexans AmerCable is a global
leader in cable and cable assembly solutions for equipment operating in extremely harsh environments. Nexans
AmerCable, with some 400 employees,
is owned by Paris-based Nexans Corporation.
Nexans AmerCable manufactures highly
engineered jacketed power, control and
instrumentation cables for the oil and
gas, mining, industrial and renewable
energy markets. The company exported
cables to 32 countries in 2012 and derives almost 50% of its total sales from
exports. Its primary export is trailing cables for surface and underground mining
equipment in sizes ranging from 5,000
up to 25,000 volts.
partners
with professional associations like the
Society for Human Resource Management (SHRM), the Institute of Internal
Auditors (IIA), and the Association for
Operations Management (APICS) to develop and distribute certification exam
preparation courses to some 160 countries through a large partner distribution
network that consists of training partners
and the associations’ international affiliates or chapters.
The company relies on these distributors
for their understanding of the requirements of local employers and educating
certification candidates. They assist can-
“Our overall business growth has averaged
8% since we began to heavily export our
educational courses in 2004, while the
percentage of our revenue from exports
has increased from 7% to 32%.” Erik
Hinkie, Holmes CIO, pointed out, “Exporting our educational courses touches
every aspect of our business, helping us
ride out domestic sales declines from the
past recession, and fueling our growth
over the last five years.”
It is this extraordinary export growth
of its educational materials that earned
Holmes the President’s Excellence in Export Award. See www.holmescorp.com
for more information.
“We export most of our mining cables to
Canada, China and the prominent mining countries of South America, such as
Chile, Peru and Colombia,” said Nexans
AmerCable spokesperson, Tom Rice. See
www.amercable.com for more information.
Holmes Corporation APICS CSCP Learning System
IBNewsmag TM
page 9
July-Aug 2013
Heartland Exports Stumble in July.
Imports Growing Faster.
Heartland International
Tr a d e I ndex
2013 July
June
HEARTLAND
EXPORTS
50.0
52.9
HEARTLAND
IMPORTS
53.6
52.9
Heartland new export orders slipped
nearly three percentage points in July
to a no-growth reading, according to
the latest survey of purchasing managers in the Midwest.
July new export orders fell to 50.0,
down from the 52.9 figure in June,
while imports ratcheted up to 53.6
from 52.9 in June.
“New export orders are trending
downward to a just-even reading,”
said Ernie Goss, Ph.D., MacAllister
Chair & Professor of Economics at
Creighton University. “For imports,
continued slow but positive growth
for regional manufacturers boosted
them slightly for the month.”
The Heartland International Trade Index
is exclusive to IBNewsmag, and is a leading
economic indicator measuring monthly changes
in new export orders and imports based on a
monthly survey of Institute of Supply Managers for the 9-state region of Arkansas, Iowa,
Kansas, Minnesota, Missouri, Nebraska,
Oklahoma, North and South Dakota.
IBN
Creighton University’s
Professor Ernie Goss
Register Now for the Futurallia of Latin America
International Business Development Forum
Priority Logistics is a proud sponsor of the Kansas City delegation.
16 pre-selected one-on-one business meetings in two days. 500 business owners from 30 countries throughout
the Americas and the world will come to meet you, and you choose the ones you want to meet.
For More Information:
Call Jody Edgerton at 816.896.9696, or email at
[email protected]
www.americanallia.mx
Expo Guadalajara
Guadalajara, México
www.americanallia.mx
July-Aug 2013
page 10
Senate’s Proposed Budget May Allow
Refunding of Popular Step Grant Program — According to our sources in Wash-
ington, D.C., the U.S. Senate has proposed an
unspecified amount in its proposed budget for
refunding the Step Grant through the SBA. Neither the proposed amount or recommended date
was revealed, but it is certain that it would not
apply until at least 2015. Step Grants have been
extremely helpful to SMEs in expanding their export sales, and while the funding could affect taxes, they are nonetheless a stimulant to a recovering
economy through American exports and job creation.
China’s Manufacturing Loss Becomes
Opportunity for other Countries —
According to a report by Stratfor, the geopolitical intelligence firm, “China’s economic problems
have opened the door to 16 different countries,
including Ethiopia, Mexico, Indonesia and Peru,
to become global forces in the growth of the
manufacturing sector, “noted an article in Americaeconomia.com. Stratfor says that the 16 countries after China, according to their region are, in
Latin America: the Dominican Republic, Mexico,
Nicaragua and Peru, in the Indian Ocean Basin:
Ethiopia, Kenya, Tanzania, Uganda, Bangladesh,
Sri Lanka, Indonesia and Myanmar , and in the
periphery of the South China Sea: Cambodia,
Laos, Philippines and Vietnam.
913-754-2065
[email protected]
www.prioritylogistics.net
KCI Airport Air Cargo Traffic Up for First Half 2013
The Kansas City, Mo., Aviation Department reports that Kansas City International Airport (KCI) air cargo at KCI is
up 4.3 percent from the same period last
year. Air freight handled at KCI during
June, however, amounted to 15.3 million
pounds, a year-over-year decrease of 5.7
percent. Air mail for June was up 3.7 percent from June 2012. All-cargo carriers
reported 4 daily departures in June.
Air cargo tonnages, which consist of both
freight and mail transported by air, for all carriers at KCI, were down 5.6 percent in June.
KCI passenger traffic totaled 935,186 passengers arriving and departing through its
gates in June, representing an increase of
3.4 percent from June 2012. Passenger
boardings at KCI were up 3.5 percent,
with a total of 463,096 during June. For
the year to date, boardings at KCI totaled
2,344,984, a decrease of 5.1 percent from
the same period last year.
The number of peak-day scheduled aircraft departures for June was 186. Service
was offered to 45 nonstop markets. There
was an average of 39,369 arriving and departing seats available in the market each
day, up 6.5 percent from last year.
www.flykci.com
page 11
ABOUT
IBNewsmag
July-Aug 2013
IBNewsmag
TM
Tel 816.210.8320
Fax 816.472.0959
Frederick Baehner
Now in its 9th year of publishing by InterMark3, Inc., IBNewsmag is an
independent online magazine for entrepreneurs and small to mediumsized enterprises (SMEs) to keep them current on compelling developments affecting exports and other international business developments.
In keeping with our conversion to an e-magazine, we’ve changed our
name to IBNewsmag to better reflect it as a magazine, not a newsletter.
Moreover, the title matches our website to make it easier to access.
In each edition, and on our website – www.IBNewsMag.com – we’ll
bring you the latest international breaking news – current news items
that may affect your international business and of a regional interest
for our Heartland region readers. In addition to special events, we will
announce company news as appropriate. So feel free to send your editorial suggestions and news releases. Email them to:
[email protected].
6655 Troost Ave.,
Kansas City, MO 64131, USA
In God we trust!
PUBLISHER/EDITOR:
Frederick Baehner
EDITORIAL ADVISORS:
Jo Anna Edgerton, Paul Mastilak
DESIGN:
Tom Gilland,
www.GillandGraphx.com
Last Fall, IBN conducted focus groups and a survey of entrepreneurial small companies. The most important outcome was the lack of
knowledge and resources available to help them export. As a result,
we’ve developed a 10-Step checklist to help new-to-export companies
through the process of success-filled exporting.
You can request your FREE copy of our 10 Steps by emailing
[email protected]
International Business News
Kansas City International Airport (KCI*) is one of the most convenient commercial airports
in the world. In 2012, 10 million passengers enjoyed its easy terminal access. More than 95,000
tons of air cargo was handled along “cargo row” with direct airfield access. Ten passenger
airlines offer nearly 200 daily departures, with nonstop service to 40 destinations. All cargo
carriers offer four daily departures, and operate an extensive Road Feeder Service network.
Beyond the terminals, there are 7,000 acres of land available for development surrounding the
airport. KCI has become a prime opportunity for developers, manufacturers, shippers and
freight forwarders looking to expand their businesses.
The Ambassador Building at KCI offers Class A office space for $15 per square foot. CBRE/Trammell
Crow is developing the KCI Intermodal BusinessCentre, featuring build-to-suit flex buildings
combining low-cost, on-airport sites with easy access to four major Interstate highways, an
expansive cargo-handling infrastructure and one of the nation’s largest Foreign Trade Zones.
KCI is the smart choice for passengers, cargo and commerce alike.
*IATA Code: MCI
KANSAS CITY INTERNATIONAL AIRPORT