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The Panama Canal revolutionized shipping and world commerce over a 100 years ago. But in 2021, the bicoastal country of Panama is expanding its strategic location by becoming a regional logistics hub. Because it has plenty of competitive advantages for international corporations, it stands apart from other ports in Latin America.
Today, the goals for JAS Panama are clear: to develop its hub-related services in the Central, South American, and Caribbean regions as well as to exponentially grow operations by 2024. This will lead the way to increase the JAS presence in the near future.
The actions JAS Panama has taken over the last six years have been key in getting operations on the right path. JAS Panama has located a better and bigger warehouse at the Colón Free Zone on the Atlantic coast, attracting global accounts to set up their regional distribution hub. This is the case with companies like Ricoh, one of JAS Panama's top local clients. JAS is expanding its Panama cargo consolidation services as well, broadening the reach within the area, taking advantage of the reduced transit times for regional distribution, either from Europe or Asia.
Over 80 major shipping lines connect Panama with all regional ports. The ports of Atlantic (4,454,902 TEU), and the Pacific (3,161,657 TEU), just an hour apart by land, are the top 2 most active port clusters in LATAM. Using Colón as the JAS Panama hub, the average transit times for inbound and outbound ocean freight cargo improve considerably which allows companies to experience a faster time to market. Panama City’s Tocumen Airport is also the best connected in the region, covering over 100 destinations and 132,000 annual flights.
Moving cargo through Panama’s Free Zone is duty-free for all imports and exports, with the added advantage that income tax is greatly reduced via government incentives. This has led many multinational companies to establish their regional headquarters in Panama, which in turn has created a positive impact for local shipping and logistics industries.
Colón is the second biggest free zone in the world after Hong Kong and its market share continues to grow at a steady pace. A few years ago, the Panama Canal expansion widened its route to accommodate post Panamax vessels. This has provided new avenues for global commerce.
Following the JAS industry support philosophy, regional clients include companies from varied industries such as telecommunications, computer technology, business solutions, manufacturing, and food & beverage. JAS has also been able to grow within the e-commerce market, putting the company on the map and providing experience that will surely benefit JAS' global operations.
There is a great deal to say about Panama, a “hub of hubs”, as some experts call it, and all its benefits for JAS Worldwide and our ever-growing family of clients.
In the vibrant heart of Chicago, our freighter operation orchestrated a remarkable display of efficiency and precision. Our plane touched down on the tarmac at 12:19 PM, and by 12:29 PM, our aircraft was parked and ready, with our 53-foot trailer positioned alongside. This moment, captured against the backdrop of a radiant Chicago sky, symbolized our meticulous coordination and unwavering readiness.
Just 18 minutes later, our first truck began its journey to JAS ORD, marking the swift commencement of the cargo’s journey. In collaboration with our dedicated partners, our team worked with remarkable precision to ensure every kilogram was meticulously handled. By 1:59 PM, the flight was empty, and we had successfully offloaded an impressive 95,549 kilograms in just 1 hour and 30 minutes.
In the realm of freight forwarding, where both speed and safety are crucial, this feat exemplifies our commitment to excellence. Our efficient turnaround not only highlights our core values but also underscores our promise of rapid and secure cargo handling.
As we enjoyed the beautiful Chicago day, with our trailer and plane framed in a perfect snapshot of efficiency, it became clear: we don’t just move cargo; we redefine the standards of reliability and efficiency. Our streamlined operations significantly reduce tarmac time, especially for temperature-controlled shipments, ensuring optimal conditions every step of the way.
Here’s to achieving flawless results with every shipment—where success transcends promise and becomes a stunning reality.
October 2024 – Santiago, Chile – JAS Chile is proud to announce that it has been named a Great Place to Work for the second year in a row. This prestigious recognition highlights the company's commitment to fostering an inclusive, collaborative, and empowering work environment that prioritizes employee well-being and growth.
The Great Place to Work award is based on employee feedback, recognizing organizations that promote a strong company culture, trust, and engagement. JAS Chile’s continuous efforts to enhance its workplace culture have been instrumental in achieving this honor. The company places a high value on creating an environment where employees feel respected, heard, and motivated to contribute to the company’s success.
“We are incredibly proud to be recognized again as a Great Place to Work,” said Rodrigo Bustos, Managing Director of JAS Chile. “This achievement is a testament to our team’s dedication and our ongoing commitment to creating a workplace where every employee can thrive. We believe that when our people succeed, our business succeeds.”
JAS Chile continues to invest in initiatives that promote employee development, diversity, and inclusion, as well as programs focused on mental and physical health. The company strives to maintain a culture that supports work-life balance, innovation, and open communication, making it a rewarding place to work for all team members.
By receiving this award for the second consecutive year, JAS Chile reaffirms its status as a leading logistics company not only in terms of operational excellence but also as an employer of choice. The company remains committed to nurturing its talented workforce as it continues to grow and expand its global footprint.
With job actions suspended and ports resuming operations, efforts are now focused on clearing the significant backlog caused by the three-day strike. Full recovery is expected to take most of October, as dockworkers manage the accumulated vessels and cargo.
Carrier Actions: Force Majeure and Surcharges
In response to the disruption in the past days, major carriers like COSCO, ONE, CMA CGM, and Evergreen declared force majeure, which could lead to additional fees for shippers in the coming weeks. As the strike forced many carriers to divert containers to alternative ports, delays and added complications may persist.
With port operations now resuming, shippers should remain alert to detention and demurrage fees, as the previous suspension of these charges during the strike has ended, with trucks waiting outside the gates also those charges are to be expected. The ongoing congestion is expected to exacerbate these costs. Many carriers have also announced disruption surcharges, set to take effect by mid-October. However, shippers should not be surprised if these charges do not always materialize, as carriers often announce such fees without clarifying when they will be withdrawn. Shippers are encouraged to review their contracts and force majeure clauses to better understand potential additional costs.
Global Market Disruptions Ripple On
Although the strike is over, its effects are expected to ripple across global markets. In about two weeks, there may be a temporary reduction in export capacity from Europe, further driving up freight rates. This disruption could spread to other regions with a delayed impact. Global logistics networks will take time to fully stabilize, and rate volatility is likely to continue.
Air Freight Surge as Ocean Capacity Tightens
With ocean freight constrained, shippers are turning to air freight, causing rates to rise sharply. Time-sensitive shipments, in particular, are facing higher costs as air freight capacity is stretched. Businesses relying on fast deliveries should brace for continued increases in air freight costs.
JAS Worldwide: Supporting Your Supply Chain Needs
JAS Worldwide remains committed to helping businesses navigate these challenges. Our teams are actively monitoring the situation and are ready to provide customized solutions to minimize disruptions. Whether you need alternative air freight services, rerouting assistance, or expert advice, JAS Worldwide is here to support your supply chain. Contact your JAS representative today to create a strategic plan that ensures your operations remain resilient and efficient.
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