During the spring and summer months, many families, individuals, and couples look to cruises for their vacations. Traveling in this way can provide exotic locations, stunning views, easy navigation, and decadent service all in one place.

Though it may be easy to imagine what goes into the majestic construction of each vessel, the careful mapping of routes, and the luxury of on-board experiences — what does it take to feed everyone on board?

The Particulars of Equipping a Mini City

“A cruise ship is really a mini city on the sea,” says our Director of Cruise Operations, Alex Durante. “It needs everything imaginable onboard for its week-long voyage: all sorts of dry and perishable foods that originate globally, linens for cabins, spare parts for the engine room, chlorine for the pools, an array of cleaning chemicals, every type of beverage, waste management equipment, whatever’s needed to fulfill the entertainment on board. The list goes on and on, and all these items need to be strategically shipped to the vessel week after week. But in the end, all of it has to get there on budget, precisely on time, and without any room for error or delay.”

“It’s not like a cruise vessel can stop to pick up things,” Horizon’s Chief Commercial Officer, Josh Roman, adds. “Whatever they have on board is what they have on board. If an essential ingredient is missing, they may have to substitute it. Even if a chef is working with the wrong kind of flour, they’ve still got to make the bread.”

Supplying such a “city on the sea” requires the labor of hundreds — if not a few thousand — individuals depending on the size of the ship. There are many moving parts, and a lot of provisions needed. “For smaller luxury cruises,” Durante says, “when it comes to meats, poultry, etc., we’re shipping somewhere around 5,000 pounds for a single voyage. Then say 7,000 pounds of produce, 15,000 pounds of beer, alcohol, wine, soda; you can see over 2,000 pounds of soda alone. And for those with a sweet tooth, 300 pounds of ice cream.”

At Horizon Air Freight, we specialize in catering to smaller, boutique operators: ships that usually limit their passengers to 200 – 1,000 people on board, as they often have unique itineraries requiring customized solutions. Though the volume may be less than that of a larger cruise line, the needs may actually be greater due to the areas the vessel(s) will operate in. Tickets for some of our clients can be thousands of dollars. Passengers are therefore expecting an even higher level of service, because they’re receiving an even more intimate experience.

“We provide white glove service for all of those customers,” Durante says. “Whatever guests want, we can make it possible.”

“Everyone on these trips,” expands Roman, “expects that when they bite into a tomato, it’s absolutely the freshest tomato you can get. But a lot of people don’t realize how that tomato got to that salad. We’re the ones receiving the product and are aiding and supplying it to the ship.”

Lots — and Lots — of Logistics

Durante expands on how this whole process works: “Months prior to the start of a specific season, take The Mediterranean Season for example, our customers come to us with a list of all their date on boards (DOBs). This list generally includes several dozen port calls per ship. We need to provide each customer with the dates they need to have all of their purchases delivered to our consolidation hub for each DOB.

“Urgent items are shipped by air freight to the ship, but 95% of all procured items are shipped by sea, due to weight and volume. Ocean freight planning involves a strategic and very calculated review of the schedules for all transportation carriers with over-the-water service to the customers’ unique destinations. It is also our fiduciary responsibility to the customer to identify the carrier(s) with the most cost effective, yet direct service.

“Once we find a sailing schedule where the cargo vessel’s ETA is aligned with the client’s DOB, we then have to work backwards to identify all of the dates in between; i.e. the ETD from the origin seaport, the cut-off date at the origin export terminal, the date which all inventory picking/prepping/packing will commence, and the most important date of them all, the date by which all of the clients’ purchase orders need to be delivered to our warehouse. We have one chance to make delivery to the ship, so there’s zero room for error!”

Multiply this by the fact that several of our customers have 10+ ships all over the world at once. Each ship is in and out of a different port once a week for 52 weeks a year. “52 weeks for 10 ships is 520 DOBs. That’s in excess of 3,000 different yet strategic dates we need to calculate for that customer alone to account for a full year’s itinerary. It can get dizzying.”

But at Horizon, we’re equipped for all of this. “We do the same thing for cruises as we do everyone else — work backwards from the dates when they require things,” says our Director of Marine Logistics, Rosemarie Susino. “We don’t make the decision about how anything’s being transported, because ultimately that’s the customer’s decision. But we do plan out with the knowledge that in general, ocean transit takes much longer. Air freight is faster but more expensive. That’s why these cruise owners try to plan so far in advance so that we can schedule things through the year. It’s more affordable, and easier for their schedule.”

How do we ensure so many deliveries at once? “We just dot every i and cross every t,” Horizon’s Senior Routing Manager, Bridget Aglio, says with humor. “We use all means possible to confirm delivery: Phone calls, computers, cell phones. It’s a lot of communication. Some of our methods depend on delivery location as well. For example, some of our worldwide warehouses are in our WorldTrack 2.0 system, so everyone can see when delivery happens. Other ports we’re not linked up with, so we do it the old fashioned way — with emails and phone calls.”

Navigating Obstacles

Even with advance planning and preparation, unexpected challenges can occur. For example, “At Christmastime, airlines are full and often have less cargo space,” Susino says. “There are certain services you can pay for with airlines to make yourself a priority, but honestly anything could be bumped. Most airlines will talk to us about the reality, and then we go look for other options. We don’t tell people we can do things if we’re not sure we can. Weather, for example, is always out of our control. We just do our best.”

“On occasion we’ve picked up freight ourselves and moved it to another airline which may have a sooner departure,” Aglio adds. “We’ve had to do that a few times.”

Regardless of when the cargo is due to arrive, location also has to be taken into consideration. “Most countries have different requirements or regulations for food,” Roman says. “For example, in some countries, specific animal products have to arrive at the same port it’ll be departing from. You can’t ship it to some other city and have it sent to the port of departure. So workarounds are needed there.”

“And then too what happens if there’s a strike?” Managing Director at Delver Agents, Vero Palacios, adds. “During the World Cup last year, there was an impromptu holiday in all of Argentina. So we all jumped in to find solutions for that unexpected delay.”

Sometimes even the cost of getting something in a hurry can pose a challenge. “You might save a fortune using a standard courier service, but it’s never going to get there,” Roman cautions. “And the difference between something arriving and not – it’s just too great. Imagine what happens if you have a special menu focusing on Norwegian salmon, and it doesn’t show up. The expense and hassle of redoing the whole menu alone would be considerable. And in worse cases, the expense of refunding tickets for disappointed passengers, or reversing the damage done to your brand — it outweighs anything you would spend to ensure it gets there.”

Whether it’s location, weather systems, speedy freight needs, or anything else we have to work around, Durante reinforces: “We are taking care of our clients in the same way they take care of their passengers.”

Servicing Special Requests

“Occasionally you do have last-minute requests,” Susino says. “Just recently we did a shipment for a boutique cruise line that requested a particular coffee maker from Europe. All their other containers had gone out, so we shipped it by air freight. To get to one particular passenger.”

The team can share several other examples, too:

“One time there was an inquiry for a rare type of fish from the New Orleans area that a passenger requested for a dinner service,” Durante says. “The cruise vessel was going to be calling Belize in a few days. We had to pick up the fish from this specialized company, bring it to our warehouse, pack it with dry ice, and fly it via perishable air service to deliver it to the vessel in Belize on the DOB — all for one meal.”

Palacio illuminates further: “In South America, lobster is a warm water crustacean. It’s really not available. So we had to bring some in from Cuba. The crate was full of live lobsters. Our Suppliers Division Manager had to go to Buenos Aires in summer, where it’s 84 degrees in the shade, wait there for them to arrive, make sure the temperature was still okay, and get the lobsters to the ship. Kobe beef in Ushuaia also does not exist. When it’s requested, we have to fly it from Japan to Ushuaia.”

Durante shares a final story: “Last month, we had a special transportation request for 5 kgs of specific caviar that originates from California, for serving at a chartered wedding cruise boarding in Miami. We needed to make sure it remained at the precise temperature during its transit, and once it arrived in Miami, we had to have it stored over the weekend without breaking its cold chain environment. Then it was delivered on the morning of the DOB via a refrigerated truck to the cruise ship. In situations like this, you can’t go to a standard courier company and say ‘Can you pick up this caviar in CA and send it to this cruise ship?’ You need a specialty company like Horizon.”

That’s because adapting to special needs and unexpected crises is what we’re used to.

How We Do It All

“Horizon is the oldest operating marine freight forwarder in the U.S., and arguably the world,” says Durante. “From day one of our 52 years of experience, our focus has always been marine. We started our service to cruise vessels in 2017 by flying a few cases of produce from the West Coast to Papeete, and it morphed from there. Once we demonstrated that we had the infrastructure and expertise to expedite shipments to a ship in the remote South Pacific, word got out and our business grew very quickly.

“All of what we do is very specialized,” he continues. “We’re dealing with thousands of cruise passengers weekly, their unique tastes in food, and all of the luxury or specialty items they require during their voyage. We have an amazing team that works their butts off. Everyone is highly intelligent, hard working. We simply wouldn’t be able to grow at the rate we’re growing if we didn’t have the best and most dedicated people working for us. You can have the best business model in the world, but you need the right people to run the show.”

Lucky for all of us, each day of servicing our cruise industry clients presents interesting new challenges that keep everyone intrigued. It’s invigorating to serve cruise vessels (and all our other clients) by getting them they need, when they need it, safely, cost-effectively, and on time. For more information about what our team can do for yours, contact us online or call directly at 800-221-6028.

Together as One, Industry Leaders Will Extend Global Reach, Offer Unmatched Quality in Marine Logistics and Port Agency Service

Horizon Air Freight and Swift Marine announced today that they have entered a strategic business partnership and will unite as a single company, Horizon Group.  The new joint company will now offer a unique combination of marine logistics and port agency services in North America, South America, Asia, and Europe.

“Two great companies have become one for the betterment of our clients,” said Steve Leondis, CEO of Horizon Group. “Together, Horizon and Swift can offer the next level in service through an even larger, stronger network for our customers.”

“Together, Horizon and Swift can provide unmatched value for our customers,” said Nico Koumbatis, CEO of Swift Marine. “Our shared mission is to deliver everything they need to their ports of call while also managing the logistics along the way.”

The combined services following the partnership include:

• Best in class customer experience from Port agency to logistics
• Streamlined data communication and collaboration with all parties along the supply chain
• High tech marine solutions and in-depth global knowledge of custom procedures arranging the last mile from port to vessel worldwide
• White-glove port call service with talent on board to ensure customer success
• Consolidation and freight forwarding of spares, supplies, and equipment from any vendor worldwide
• Port call agency services at more than 100 served ports in the Americas
• Last mile services for more than 500 ports worldwide with an over 99% Global On Time Delivery Rate
• Spares and supplies consolidation at Horizon Group’s 30+ global warehouses
• Import and export documentation services
• Customs pre-clearance for all inbound air and ocean shipments
• Last-mile delivery services at any port of call

Horizon is a platform investment of ICV Partners, LLC.  Zeena Rao, a Managing Director of ICV Partners, said that Horizon and Swift make a formidable team. “It’s rare to find two companies with such consistent missions, visions, and values that put the customer first.  The combination of Horizon and Swift provides customers with best-in-class service and capabilities worldwide.”

Alongside Horizon’s acquisition with Transmarine Navigation and Delver Agents, the Horizon–Swift partnership solidifies the Horizon Group’s strength in Asia, Europe, and the Americas—underscoring their unique position as a one-stop solution for clients everywhere.

Existing customers of Horizon and Swift Marine can take advantage of the newly integrated services immediately by reaching out to their current account representatives. New customers can contact Horizon through haf.com or by calling 800-221-6028.

About Horizon Group

Horizon Group keeps fleets shipshape and on schedule with global marine logistics by air, land, and sea. Critical marine spares, supplies, and equipment from any vendor worldwide: consolidated, expedited, delivered door to deck. Whatever you need, wherever you need it, we’ll get it there on time and on budget. With more than 50 years of experience, we keep more than 3,000 ships safe, able, and sailing.

About Swift Marine

Swift Marine Group is a dynamic organization with extensive experience in the complex world of marine logistics and forwarding. Leveraging its prowess as a frontrunner in IT innovation, Swift acts as a consolidated control tower for its large and diversified customer portfolio to streamline data communication and collaboration with all parties along the supply chain.

About ICV Partners

Founded in 1999, ICV Partners is a private investment firm that supports management leaders of strong lower middle market companies in pursuing growth.  The principals of ICV have crafted a strong track record of helping companies expand their footprint and improve performance over the long term.  Additional information is available at www.icvpartners.com.

Q4 2022 Purchase Further Establishes Horizon as Leading International Port Agency and Comprehensive Marine Logistics Company

Horizon Air Freight announced today its recent acquisition of Transmarine Navigation Corporation, further establishing its leadership positions as an international port agency and customer-first logistics solution for ship owners, operators, and charters, making ports of call in North and South America.

Horizon CEO Steve Leondis said the transaction was completed in Q4 2022.

“In the spirit of Horizon and Transmarine, we began our partnership with a focus on our customers and the quality of our services,” he said. “Now it is time to share the big news with the public. Our acquisition of Transmarine allows us to better coordinate critical services for our customers’ vessels calling North and South America. Together, we’ll get everything they need to their ports of call and manage all their in-port logistics too, all with our shared commitment to excellence in the service of our customers. It’s a simpler and more streamlined solution for our clients, all provided by two companies the industry has trusted for generations.”

The combined services after the acquisition include:

• Best-in-class customer experience in agency for North and South America
• Best-in-class door-to-deck marine logistics solutions globally
• White-glove port call service with talent on board to ensure customer success
• Freight forwarding of spares, supplies, and equipment from any vendor worldwide
• Port call agency services at Transmarine’s 12 served ports along the Gulf Coast, West Coast, Hawaii, and Argentina
• Spares and supplies consolidation at Horizon’s 30 global warehouses
• Import and export documentation services
• Last-mile delivery services at any port of call

Transmarine recently announced that Leslie Clements was stepping into the role of Managing Director, a position previously held by Jim Papp, who is assuming the role of Head of Strategic Ventures. Papp was instrumental in developing the partnership with Horizon.

“After nearly 40 years at the company, I can confidently say that there has never been a more exciting time to be a part of Transmarine,” Papp said. “A new ownership structure, combined with a great new leader in Leslie, will ensure that our best days are upon us.”

“It’s an honor to continue Transmarine and Horizon’s great work,” Clements said. “The new visionary leadership team, alongside the legacy of producing results for our clients, is the perfect combination.”

Existing customers of Horizon and Transmarine can take advantage of the newly integrated services immediately by reaching out to their current account representatives. New customers can contact Horizon through haf.com or by calling 800-221-6028.

About Horizon Air Freight 

Horizon Air Freight keeps fleets shipshape and on schedule with global marine logistics by air, land, and sea. Critical marine spares, supplies, and equipment from any vendor worldwide: consolidated, expedited, delivered door to deck. Whatever you need, wherever you need it, we’ll get it there on time and on budget. With more than 50 years of experience, we keep more than 3,000 ships safe, able, and sailing. To learn more about how Horizon and Transmarine’s combined services can help your fleet, call 800-221-6028 or visit haf.com.

About Transmarine

Founded in 1938, Transmarine is a leading U.S. tramp ship agency, headquartered in Long Beach, California, and with offices in a dozen port cities along the Gulf Coast, West Coast, and Hawaii. The most prestigious firms in the shipping industry trust Transmarine to manage their port call operations with safety and efficiency. To learn more visit www.transmarine.com.

The global maritime supply chain has, to put it mildly, been tossed about through three turbulent years as the world was swept by the COVID-19 pandemic.

In the immediate aftermath of the initial coronavirus outbreak, whole nations closed their ports and borders, and entire fleets of planes were grounded. Then, as scientists and public health officials learned more about how to prevent, diagnose, and treat COVID-19 infection, demand skyrocketed for shipping of hand sanitizer, masks, and other personal protective equipment (PPE), as well as for ventilators for overrun hospital emergency departments. In the months and years that followed, those able to work from home ordered furniture, equipment, and supplies to fit out their home offices and adjust to homebound family life.

While all this new demand led to record gross revenues for shipping companies, it also dramatically increased complexity and operating costs. In the nearly three years that have followed, labor shortages and quarantines caused historic delays at ports, commercial flights dropped more than 70%, and exacerbated trade imbalances led to massive shortages of containers in key manufacturing regions of the world. All of this impeded and slowed delivery of critical marine spares, equipment, and supplies, while driving up air and sea freight rates astronomically.

Together, we found ways to get you what you needed to keep your fleets safe, able, and sailing, though we know those skyrocketing freight rates have strained your budgets. We did whatever it took to keep your deliveries 99% on time without busting your budget, and you stuck by us through the hard times.

Ocean and Air Freight Rates (and Transit Times) Set to Decline

As we enter 2023, it seems that smoother sailing for procurement departments is at last just over the horizon, with both rates and delays now declining:

• Ocean freight rates are down as much as 90% from Asia to the U.S. West Coast, and down more than 70% to Europe and the U.S. East Coast.
• Air freight rates are also declining, though not as dramatically as ocean freight.
• Road and rail freight rates are expected to remain stable.
• The COVID-era shipping container shortage is now a shipping container surplus.
• A record-breaking absolute capacity of new container ships — reflecting 30% of the entire existing tonnage — is presently on order and due to be delivered in the next two years.
• Maersk, MSC, and CMA CGM will soon all offer air cargo services.
• Average door-to-door transit times from China to the U.S. have fallen from a high of 80 days in early 2022 to 55 days in November.

Granted, this all comes with expectations that shipping revenue will decline in 2023, but so too should procurement costs. With the historic demand of the past few years subsiding, procurement departments will be under heightened pressure to seize all opportunities to reduce logistics costs in order to maintain healthy profit margins.

What You Can Do to Reduce Your Marine Logistics Costs

Fortunately, we expect 2023 to mark a return to more predictable procurement planning: an opportunity for you to do what you do best to control costs while keeping your fleet shipshape and sailing. Following are some key ways you can reduce costs in the year ahead.

Reap the Rewards of Planning

The chaos of the COVID era sometimes punished planning ahead. Rates, fuel prices, schedules, demand, delays, and everything else were in constant flux to a degree our industry has never seen before. But we expect 2023 to be a return to relative stability in the freight environment.

Planning ahead will once again be reliably rewarded. So map out in advance what you’ll need, where you’ll need it, and when you’ll need it there. Place your orders with plenty of lead time, confident once again that the entire industry won’t turn upside down before delivery.

Plan Backward from Year End

While the future is never certain, we’re returning to an environment in which you can usefully scope out the year ahead rather than reacting to each day’s new crisis. What planned maintenance will your ships need and when? When will major port calls be near key supply hubs? What other important milestones can you anticipate for your ships over the next year?

Plan out the foreseeable needs you’ll have through year’s end, then work back from there. You’ll save yourself a lot of stress and save on shipping costs too.

Revisit Contract Service Agreements

With spikes in fuel costs, many of your contract service agreements have been more expensive than you probably anticipated when signing. Higher fuel costs understandably led to higher shipping costs, but fuel prices have lately been leveling off and declining. Your shipping costs should too.

Carefully review all your contract service agreements that have fuel surcharge provisions or fuel-based pricing. Make sure you’re getting the shipping cost reductions that lower fuel prices allow.

Communicate Your Preferred Supply Ports and Logistics Hubs

Consolidation is one of the more effective ways we can control your costs. Horizon has 30 warehouses located near key suppliers and ports around the world. And we can save you more if we know more… and if your team knows more too.

Communicate your preferred supply ports and logistics hubs to us, to your team, and to all on-board staff who will submit purchase orders. That will allow us to better consolidate your orders and deliver them efficiently to your ships at planned ports of call.

Whether through turbulent seas or in times of smooth sailing, Horizon is here to help you optimize your budget. Whether for scheduled maintenance or an emergency need, we’ll get you whatever you need, wherever and whenever you need it to keep your ships safe, able, and sailing. Call us at +1 800-221-6028 or contact us online anytime, and tell us how we can help.