ClearFreight, For the long haul

Manufacturing in Action, Source : The Manufacturer US
Published : June 2007

In an increasingly competitive market, ClearFreight uses experienced staff and an investment in IT to offer top-notch global shipping and freight forwarding. Linda Seid Frembes finds out more

The global economy and international trade offer many benefits, including the ability to buy the same T-shirt or tube of lipstick from one corner of the world to the other. However, manufacturers who need freight transportation across the globe must somehow maintain the quality and cost-effectiveness of their shipping operations.

Companies like international logistics provider ClearFreight can help manufacturers keep track of their shipments and help steer the freight through an ever-changing maze of port requirements and cargo inspections.

Logistics providers such as ClearFreight understand that managing costs and on-time schedules are top priorities. ClearFreight agents specialize in various forms of air, sea, and land freight import and export, and they spend time developing relationships with carriers to ensure the best pricing available in the market. ClearFreight was founded in 1973 as a business specializing in US Customs Brokerage and related import services. The company’s success is due to constant emphasis on staff development, implementing innovative procedures, and investing in technology. The company is owned by Sankyo Transportation, a member of the Fujiki Group in Japan.

In a market that runs on freight schedules as well as relationships, the employees at ClearFreight approach their jobs with a long-term mindset and a clear goal of custom-tailored service. In fact, many long-term employees now form the backbone of supervisory, technical, and customer service functions. Vice President Dave Reynolds is one example. He has been with the company for 19 years and specializes in air export. “Part of my responsibility is to travel internationally to meet with and choose logistics partners. I’m one of four vice presidents; the other VPs specialize in ocean export, customs brokerage, and import,” he notes.

Working from his office in El Segundo, CA, Reynolds often interacts with freight carriers around the world. According to the company website, employees speak, read, and write most Asian and European languages, which enables them to deal effectively with clients and documents worldwide. “Our company is like one big niche operator, with each office operating fairly independently as its own profit center,” he says. “We are a big shipper of haircare and beauty products, as well as the number one worldwide shipper of pet food. Our largest air freight cargo has been enormous industrial pipes measuring 40 feet long and 8 feet in circumference.”

Problem-solving skills are a must, so the company works as an agent to all carriers to ensure the most flexible shipping options. A major challenge has been the lack of uniformity in terms of IT across all markets, from airlines to container companies to ocean liners. ClearFreight is currently looking at a Web-based platform for customers and carriers to track shipments and communicate with each other, but in the meantime employees rely on email as the main form of communication. “We pay attention to market shifts, such as an embargo or weather situation, and can still figure out a solution to get our customer’s goods to the final destination. With global shifts like a change in currency, we want to have a lot of options so we can make changes to our plan based on what’s happening around the world,” says Reynolds.

ClearFreight is an active participant in Automated Broker Interface (ABI), Automated Clearing House (ACH), Automated Manifest System (AMS), and Automated Export System (AES).

The worldwide increase in terrorism and terrorism awareness has presented a challenge to the freight-forwarding market. “The TSA and others have had to make it up as they go along. The market has been very trying,” says Reynolds. “But we participate in the Customs-Trade Partnership Against Terrorism, the first worldwide supply chain security initiative.”

C-TPAT is a voluntary program in which companies must complete an online electronic application that includes submission of corporate information, a supply chain security profile, and an acknowledgment of an agreement to voluntarily participate. As part of the security profile, companies must conduct a comprehensive self-assessment of their supply chain security procedures using the C-TPAT security criteria or guidelines, including Business Partner Requirements, Procedural Security, Physical Security, Personnel Security, Education and Training, Access Controls, Manifest Procedures, Information Security, and Conveyance Security.

ClearFreight is also a member of the Certified Transportation Network (CTN). According to its website, the CTN is “a worldwide group of international logistics providers owned by the members. CTN member-partners work hand-in-hand to deliver the highest level of professional logistics services available today to meet the business needs of companies involved in global trade. Every CTN member-partner has been hand-selected and meticulously screened. Companies are selected based on customer service, accreditation by international authorities, and their extensive history of being among the top independent forwarders within their respective regions. CTN member-partners are recognized for their comprehensive services and formidable knowledge of logistics processes worldwide. With combined worldwide buying power, CTN member-partners can offer their customers the foremost pricing schedule possible with customer-defined service levels. On a worldwide basis, CTN member-partners move over 1 million shipments every year to and from every country in the world.”

The company increases efficiencies by deploying measurement tools to monitor the amount of time spent in a customer file. Reynolds adds, “Our main resource is labor time and technology. The more complex shipments mean more time consumption.”

Perhaps the greatest challenge facing ClearFreight is a market that is currently in a consolidation phase. Reynolds notes that the company is in a unique position as a mid-sized player in the market. The company has recently grown via acquisitions including Gamma Freight Forwarders, a division of ClearFreight that is a full-service logistics provider offering air and ocean forwarding. The company also purchased Liberty Container Line, an NVOCC (non-vessel operating common carrier) offering weekly consolidations to Central and South America.

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