b'6American Journal ofTransportation ajot.comai161711257751_BaltiMORE.pdf 1 3/30/2021 9:56:18 AMLeavitt is keeping her spirits raised in heading beverage shippers groupsheAmidsttodayschallengingany industry veteran you would ask.BaltiMORE globaltradeenvironment,AlisonWe have never experienced anything Leavitt is maintaining high spirits aslike this meltdown of the supply chain leads a not-for-profit, 600-mem- on a global basis.ber-companyassociation of beverage importers.theAs managing director ofINDUSTRY Portland,Maine-based WineandSpiritsShip-pers AssociationInc.andaPROFILEmember of the Federal Mari-time Commissions National ShipperAdvisoryCommit- By Paul Scott Abbott, AJOTtee, Leavitt remains optimis-tic that, while some companies simplyThe wine and spirits trade lanes wont survive, progress is coming onareespeciallyshockedastherates Cmultiplefronts,fromtariffstabiliza- from almost all production areas have Mtion to broadening implementation ofbeen incredibly stable for years, with Yblockchain technologies. onlyslightfluctuations.Toseeser-CMShesharesherthoughtsinanvice plummet and rates skyrocket is exclusive interview with AJOT: an incredibly disturbing scenario. MYHaving been engaged in interna- How can wine and spirits import-CYtional shipping since the mid-1980s,ers and exporters best surviveandWELCOMECMYrunningWSSAforthepasteighteventhriveamidsttheperfect Kyears, have you ever seen things asstorm of adversities, from COVID-19 bad as now?totariffstoskyrocketingratesandto the Port of BaltimoreTheshortanswerisno,andIcongestion? think there would be consensus fromSome companies will not survive. Thepricepointincreasespromul-gatedbyfreightcostincreasesmayOn-dock railnotallowtheimportedorexported generic beverage alcohol products toRobust real estate growthremain on the shelves. Second 50-ft deep ber th under construction ter 2022However, keep in mind that manySecond 50-ft deep berth operational during first quarbeveragealcoholproductsarenon- Double stack rail coming soonfungible, unique to their terroir, and thus cannot be replaced by a similarLess than two miles to Interstate 95product. Irish whiskey can only comeAccess to 2/3 of the U.S. population within 24 hoursfrom Ireland and, as we approach St. Patricks Day, we are struggling to getmarylandports.com | 1.800.638.7519 |theIrishproductsontoshelvesandGovernor Larry HoganMDOT Secretary James F. Ports, Jr.MDOT MPA Executive Director William P. Doyleinto bars and restaurants. Governor Larry Hogan MDOT Secretary Gregory Slater MDOT MPA Executive Director William P. DoyleAllimporterswillbeforced toincreaseleadtimesdramatically andplanonthecostincreasesthatsuspension of tariffs. tility in ocean shipping rates experi-will continue to grow both on oceanThebalancedapproachtotradeenced in 2021. freight and land freight. under U.S. Trade Representative Kath- All of these factors will help our Whatglimmersofhopedoyouerine Taiisgreatlyappreciated,andmembers budget and plan.see?we are hoping for further good newsHow has WSSAs process of nego-Two years ago, all we were talk- on U.K. talks to eliminate tariffs ontiating freight rates adapted to recent ing about were the trade issues, suchcertainU.S.beveragealcoholprod- circumstances? An avid skier with a bubbly personality, AlisonasCBMA[CraftBeverageModern- ucts. This issue is currently stymiedWe have had to evaluate, adapt Leavitt, managing director of the Wine andization Act] and tariffs. It is a hugedue to discussions on the Brexit-Irishandreorganizeforsuccesswith Spirits Shippers Association Inc., enjoys abenefittotheindustrytohavetheborder issue. eachofourcarrierpartners.Every glass of fine champagne after a day on thestability now available with the per- Intermsofoceanfreightrates,carrierhasapersonalityandthere slopes.(Photo special for AJOT) manence of CBMA and the long-termwe do not expect the extreme vola- isnoone-size-fits-allintermsof negotiations.Allocationandserviceareour toppriorities,andwealsoknow whichcarrierswillhonorwhatis signedintocontract.Communica-tion and monitoring allocation is now a weekly agenda item, and the level of attention to every sailing is essen-tial. Relationships still matter, and the ability to pick up the phone and get results is essential. Carriers suffered for many years with low rates and limited to no con-sequencesforshippersnotmeeting theircontractedMQC[minimum quantitycommitment].Thetables have now turned, and I hope we can reach a new normal of honoring com-mitmentsandreachinglong-term working partnerships. What role can blockchain play in enhancing supply chain visibility? Ihavebeenablockchainadvo-cate for years and would love to see customs brokers&freight forwarders universal adaptation on a single plat-form. We are still not there, but vis-www . jfmoran.com: 800.944.1041 ibilityismoreimportantthanever due to the chaos. We need visibility (PROFILEcontinued on page 8)'