Getting a Gear Assembly from Gujarat to Busan in Seven Days

The call came in over the weekend.

A vessel needed a new gear assembly for its engine. The 2600-kilo part was in a remote area of Gujarat, India. The ship would be in Busan, South Korea in one week.

Rosemarie Susino took the call. Recently promoted to executive vice president, she had long been Horizon’s terminal manager at our headquarters near JFK. She knew that getting the gear assembly out of India in a hurry was going to be a challenge.

“The service from India is very slow,” she says. “There are so many customs regulations and a lot of red tape.” The paperwork could easily delay delivery for days, so she and her team started making calls.

From the Supplier to Abu Dhabi

Susino immediately called the supplier in Gujarat to make arrangements while Horizon’s partner in India got to work on clearing the delivery for export.

By Monday morning, the gear assembly was ready for pickup, and Horizon had a truck waiting to load it at the supplier’s facility.

By Tuesday, we had cleared the export through customs and transported it to Sardar Vallabhbhai Patel International Airport, in Ahmedabad, where our partner loaded it on a plane to Abu Dhabi. In Abu Dhabi, we coordinated transfer of the gear assembly to a flight to South Korea.

From Seoul to Busan

“The flight service from India to Busan is horrible,” says Susino, “so we flew it to Incheon,” the international airport serving Seoul.

Flying to Incheon instead of Busan got the gear assembly into South Korea much faster, but its journey wasn’t over yet. Seoul is about 200 miles (325 kilometers) from the Port of Busan, in the opposite corner of the country. So after clearing customs at Incheon on Saturday, we loaded the part onto one of our trucks and headed for Busan, arriving early Sunday morning.

A Stop by the Shop, Then Shipshape and Ready to Sail

Given the marine background of the members on the Horizon team, we know that is not always as simple as delivering an urgent spare part that gets installed as is. Technicians and specialists are often needed to inspect and install large critical Main Engine components, adding to the time it takes for the part to be put into service on the vessel. In this instance our customer needed the gear assembly inspected and prepped at a Busan maintenance shop before it could be installed, so we delivered it directly to the shop.

From there, the technicians took over, preparing the gear assembly then delivering it to the vessel. The ship’s crew soon had it installed and ready to go. They set sail the same day, right on schedule.

For Susino, it was just another week on the job. “For all of our customers,” she says, “we do whatever it takes.”

Do you need help getting your critical spares delivered on time from any vendor worldwide? Call us today at 800-221-6028 or contact us anytime. We’ll do whatever it takes to keep your fleet on schedule.

Horizon’s First 50 Years: Part Three

A look back at Horizon’s first 50 years, and a vision of what the next 50 may hold for the shipping industry’s gold standard for marine logistics.

Horizon Air Freight has thrived for 50 years due to its unyielding emphasis on innovation and growth, for the betterment of its clients. That continues today as the company focuses on its future, with goals that include expanding services into remote areas, partnering with and acquiring complementary companies to better serve its customers, developing even more products and services, and more.

In this, the third of three installments, we take a look back at how Horizon Air Freight has spent 50 years focused on its future. (Read part one here, and part two here.)

A Third Generation Joins Horizon

The people of Horizon tend to stick with the company for decades; there’s not a lot of turnover. But with ambitious plans for growth and an eye to the company’s future, Horizon has been hiring a new generation of employees.

Among the new hires is Alex Leondis, Steve’s son and the third generation of the family to work in the business. He came to work full-time with Horizon with a degree in economics from Harvard University and about three years working for investment bank Morgan Stanley. Like his father before him, Alex showed leadership at an early age by starting all four years as a defensive back for Harvard’s men’s soccer team, with an honorable mention for the All-Ivy League Team.

Alex has learned the ropes in the warehouses and on the trucks, and he is now working as Horizon’s business analyst.

“I liked Morgan Stanley, didn’t love it, and I was looking for a change,” says Alex. Around that time, his father told him that Horizon had raised substantial capital from an investment group and was poised for dramatic growth over the next few years. It was a good opportunity for someone with Alex’s analytical and financial skills to join and be part of a strategic growth initiative.

“His skillset is to help us analyze our business and drive value, look to increase EBITDA, examine things we’re doing, and help make changes,” says Steve of his son. “He’s working directly under our new CFO, Dave Rector. It’s been a pleasure having him here.”

“We’ve always had an extremely close relationship,” says Alex. “I never thought I’d be here working with him, but I really enjoy it. He’s obviously the best guy here, if I have any questions about the business. But it’s also just rewarding to see where he’s been putting in all this really, really hard work for the past 35 years, and to want to do the same.”

Recruiting from the U.S. Merchant Marines

Many of the other new hires are graduates of the U.S. Merchant Marine Academy, located in Kings Point on Long Island, not far from Horizon’s global headquarters

“We’ve seen the value of hiring these young cadets when they graduate,” says Steve Leondis, “tremendous speed ramping up to understand our business. When we hire someone who understands the maritime industry, understands ships, then learning pure logistics is very easy for them. So we’re developing this young talent which we think is the future of the business.”

“When they come on board, they already understand the importance of what we do,” says Alex Leondis. “Most of them have been on a ship. They know what it’s like when a ship doesn’t have that part that it so desperately requires. So when you tell one of them, ‘Hey, this shim, it needs to be in Dubai by the first,’ they know better than anybody why it needs to be there.”

“They’re very bright young adults and great assets to have, though there is a generation gap,” says George Savich, laughing. “I had to explain to them what a fax machine was.”

Ambitious Growth Goals

With the investment capital secured in 2019, Horizon is now pursuing aggressive plans for growth, with a goal of tripling revenue over the next few years.

“We’re going to be expanding our last mile services,” says Alex Durante, “handling customs clearance and onboard delivery into many more ports of call. We’ll be expanding into many more remote areas and areas that are troublesome for a lot of ship owners.”

“Acquisitions are my primary focus,” says Steve Leondis, “acquiring other logistic companies that will complement Horizon or allow us to include services that we currently don’t offer our customers.”

“I’m working on and thinking about new product development and services,” says Alex Leondis. “We’ll also continue to make our client transparency even better. There’s plenty of opportunity, and I think Horizon has an extremely optimistic story to tell in the next three to ten years.”

Staying True to Their Founder’s Spirit

Horizon is pursuing those goals headquartered in the same building where Anthony Leondis founded the company 50 years ago, though they own the whole building now and have a reach that spans the globe. Even as they grow, they’re staying true to their founder’s spirit.

“I’m proud of the culture at Horizon,” says Alex Durante. “We all feel like we’re one big family. I’m proud that our people understand the industry, understand the consequences if the job doesn’t get done, and don’t want to let our customers down. If there is ever a problem, when we call our clients to notify them, we also already have a solution.”

“I’m proud that we’ve provided a steady job for scores of families,” says Steve Leondis. “People who have been here 20 to 40 years, they thank me for helping them afford a house. They’ve raised their families, with this business as a consistent provider for them. We’ve navigated many crises over the years, the current pandemic included, and we kept on providing, held on to those people who have been with us all these years.”

A big picture of Anthony Leondis hangs on the wall of the Horizon conference room. Alex Leondis looks at it as he reflects on his grandfather’s legacy. “It is incredible thinking I’m working in the place where he started out 50 years ago. Unfortunately, I never got to meet him, but I’ve asked my dad a lot. I’ve heard how hardworking he was, how straightforward, how he came to this country and was all about hard work and doing the right thing.”

“I’m excited for what’s to come,” continues Alex. “I joined at a time when we have an extremely interesting opportunity. It’s up to us and how far we could push it, and that’s the best part of it. The sky’s the limit for Horizon.” Reach out to us directly to let us know how we can use our collective history and experience to serve you best.

Horizon’s First 50 Years: Part Two

A look back at Horizon’s first 50 years, and a vision of what the next 50 may hold for the shipping industry’s gold standard for marine logistics.

Horizon Air Freight has thrived for 50 years due to its unyielding emphasis on innovation and growth, for the betterment of its clients. That continues today as the company focuses on its future, with goals that include expanding services into remote areas, partnering with and acquiring complementary companies to better serve its customers, developing even more products and services, and more.

In this, the second of three installments, we take a look back at how Horizon Air Freight has spent 50 years focused on its future. (Read part one here, and part three here.)

Investing in Technology for Global Connection and Customer Transparency

The same forward-thinking mindset that first inspired Horizon’s global approach to marine logistics has also kept the company at the forefront of technology.

Horizon’s global reach depends on communications and information technologies. Anthony Leondis’ manual typewriter and his Delta 88 worked fine when all Horizon’s customers were located within a few miles of JFK airport, but coordinating customer needs from Seattle to Singapore required something more.

“We didn’t even have computers when I started working here,” says Rosemarie Susino, who joined Horizon in 1984 as a part-time receptionist and is now one of the company’s executive vice presidents. “Back then everything was manual. We would write shipping labels by hand. Now everything’s computer automated.”

Throughout its history, Horizon has been an early adopter and innovator of technology that gave customers superior visibility and transparency into the live status of their purchase orders and door-to-deck deliveries. Where other freight forwarders often left their customers in the dark, Horizon has sought always to shine a light.

Horizon WorldTrack, Horizon’s proprietary customer portal, empowers customers to track the live status of all their shipments, from the time they issue purchase orders to their vendors, up to final delivery to the vessel. In addition, Horizon’s unique portal provides an in-depth, statistical analysis of many different areas of the business such as vendor compliance, on-demand financial and performance reporting, inventory controls, and recommendations for potential cost reductions. It’s a unique, value-added service to customers who work with Horizon. The company continues to invest in new features and innovations, all driven by customer requests as well as Horizon’s commitment to distinguish themselves as an industry leader.

“Technology has taken us from the telex machine to the fax machine to email and EDI,” says James Gassert, who joined Horizon in 1982 as an export coordinator and is now an executive vice-president. “Long gone are the days of critical information and know-how residing with a limited number of resources. Now we benefit greatly from a shared platform that allows our global team to address any need at any time, anywhere in the world.”

As Steve Leondis pursues ambitious goals for Horizon’s future growth, he continues to invest in technology as a key supporter of that growth. He also recently hired the company’s first director of technology.

“We’re reinvesting to improve our systems and investing in new technology,” Steve says. “There are a lot of off-the-shelf cargo programs, but that doesn’t really work for us because we respond to customers’ needs so quickly. So we’re developing Horizon 2.0, positioning this business to handle three times the volume over the next three to four years.”

Supporting Desert Storm Through Military Sealift Command

Founded by an immigrant, Horizon played a crucial role in supporting U.S. national security during the Gulf War of 1990-91. Operation Desert Shield, and, later, Operation Desert Storm, required a massive mobilization of military equipment and supplies to Saudi Arabia.

A Business Week story at the time described the Gulf War as “the largest military logistics operation in history.” (The story is told at length in the book Moving Mountains: Lessons in Leadership and Logistics from the Gulf War.)

Much of this historic operation fell to Military Sealift Command, which currently operates approximately 125 civilian-crewed ships that move, pre-position, and replenish military cargo used by deployed U.S. Armed Forces and coalition partners. During the Gulf War, Horizon became a critical partner to Military Sealift Command, providing the marine logistics support they needed to keep their ships running and supplied.

It’s a relationship of trust that continues to this day, with Horizon helping ensure that Military Sealift Command’s vessels are always fully operational and ready to respond to the military’s time-sensitive demands.

Strategic Growth Brings New Industries and Facilities

Horizon started out supporting ocean freight shipping companies, later adding military support to the mix. As the company grew, they gradually expanded to take on other sectors of the maritime industry, including tankers, cruise lines, fishing vessels, research vessels, offshore rigs, and even shipyards. To better serve a growing number of clients in the Gulf of Mexico, Horizon also opened a new facility in Houston, now the company’s second-largest.

Alex Durante joined Horizon in 2007 and now serves as the company’s global sales director. He was instrumental in opening up several new sectors, including automobile shipping, cruise ships, and, in response to the global COVID-19 pandemic, PPE supplies.

Durante saw an opportunity to enter the cruise industry when Horizon handled some emergency overnight deliveries from Germany to the Bahamas to keep a major cruise ship overhaul on schedule. The supplier knew Horizon due to previous urgent shipments the company had handled for them. They recommended Horizon to the cruise line as the forwarder who could get the parts there on-time.

The same cruise line’s logistics department then asked Durante if Horizon could help with their food deliveries. Horizon put together an arrangement with a refrigerated and frozen warehouse in California, then set up weekly consolidated delivery schedules of food and beverages from various West Coast vendors. More than three years later, Horizon is still shipping 7,000-10,000 pounds of food via air for them each week.

That initial opportunity led Horizon to launch its cruise ship division, with a dedicated team and facilities, including new state-of-the-art refrigerated and frozen warehouse facilities in Miami and L.A. Horizon is now shipping food to cruise ships all over the world: millions of pounds of it each year. That eventually led to keeping cruise ships supplied with everything else they needed, from engine parts to watches and pearl necklaces for their onboard jewelry stores. Reach out to us directly to let us know how we can use our collective history and experience to serve you best.

(The story continues in part three.)


Horizon’s First 50 Years: Part One

A look back at Horizon’s first 50 years, and a vision of what the next 50 may hold for the shipping industry’s gold standard for marine logistics.

Horizon Air Freight has thrived for 50 years due to its unyielding emphasis on innovation and growth, for the betterment of its clients. That continues today as the company focuses on its future, with goals that include expanding services into remote areas, partnering with and acquiring complementary companies to better serve its customers, developing even more products and services, and more.

In this, the first of three installments, we take a look back at how Horizon Air Freight has spent 50 years focused on its future.

A Delta 88 and a Typewriter: Horizon’s Humble Beginnings

Anthony Leondis started Horizon Air Freight in 1970 as a one-man operation, run out of a closet-sized office near JFK airport and behind the wheel of his Oldsmobile Delta 88. He’d borrowed $600 from a friend to get started, and he drove to his customers with a manual typewriter to fill out their orders.

Leondis had immigrated to America from Sudan with his wife Agnese and their three children. (Their fourth child, Steve Leondis, was born in Brooklyn and is now Horizon’s CEO.) Anthony, although born and raised in Sudan, was of Greek ancestry. His wife was from an Italian family but born in Libya. This international understanding of and perspective on the world would later inform Horizon’s global approach.

When he first arrived in America, Anthony worked a series of blue collar jobs to support his family while his wife took a job at the post office. He loaded luggage for KLM and worked for a while with Overseas National Airways, a once storied international charter airline that liquidated in 1978 after the U.S. airline industry was deregulated.

It was demanding physical labor, but Anthony never minded hard work. And through the work, he learned firsthand how international air freight was managed. He began to see how his growing expertise could translate into a valuable service.

Anthony had made some connections to Greek shipping companies with affiliates in New York City. He reached out with an offer to handle air freight forwarding for their marine spares, supplies, and equipment. The shipping companies were impressed with the value he offered, and Horizon Air Freight was born.

Horizon Expands Into Full-Service Maritime Logistics

After about a year and a half during which Anthony ran the company on his own, Horizon grew enough that he had to hire help. He also expanded Horizon’s services to provide more comprehensive maritime logistics support for customers.

Over the course of a few years, Horizon earned its FMC and NVOCC licenses, allowing the company to consolidate maritime cargo. Horizon also became a licensed U.S. Customs broker in order to expedite import and export clearances for customers.

This growing suite of capabilities allowed the company to provide shipping companies with full-service maritime logistics, both efficiently and reliably. Anthony’s work ethic and expertise were also rapidly building Horizon’s reputation as the freight forwarder that would always go above and beyond, doing whatever it took to get parts and supplies to ships, wherever in the world they were needed.

The Second Generation Joins the Company

Anthony Leondis’ oldest son, John, joined Horizon in 1973 after graduating from Columbia University. His second son, Joseph, joined in 1977 after graduating from Harvard University. (Giving his children opportunities to get the best possible education was a key reason Anthony moved his family to America.) His daughter Irene later joined the company as controller.

Then in 1983, Anthony’s youngest son, Steve, joined the company after graduating from Yale University. A star college basketball player — he was named Ivy League Rookie of the Year in 1980 — Steve had majored in history, with a particular interest in the period of European history between World War I and World War II.

Steve had worked for Horizon during summer vacations since he was a teenager: loading cargo in warehouses and driving trucks. But with all three of his siblings already working at Horizon, he considered striking out on his own after college. However, during his junior year, Anthony came and asked his son to work at Horizon for just one year.

“He told me, ‘Hey, we could really use your help,’” remembers Steve. Knowing how hard his father had worked to put him and his siblings through college, Steve agreed to give it one year. “And now it’s 2021, and I never left.”

Tragically, Anthony Leondis died less than two years later, of stomach cancer, at the age of 58. His oldest son, John, initially took over as president, and in the years that followed all four siblings took on various leadership roles. The three older siblings have since retired from the company, while Steve remains as Horizon’s CEO.

Horizon Builds a Global Network

“When I came to the business,” says Steve. “I saw a lot of opportunities to expand our capabilities. The nature of shipping was expanding, and we needed to be forward-thinking.”

As the world economy globalized, the shipping industry adapted to support it, and Horizon did the same.

“One of the most meaningful opportunities I saw was to develop our foreign agency network,” says Steve. “A lot of our clients at that time were U.S.-based, but there was much more opportunity to serve their foreign base needs as their ships traveled the world.”

So in his first few years with Horizon, Steve spent a lot of time traveling, establishing Horizon’s foreign agency networks throughout Europe and Asia, and all around the world. He then approached Horizon’s existing customers, offering to handle their marine logistics needs overseas.

“Today,” says Steve, “65% of our revenue comes from foreign agency activity.”

George Savich, who joined Horizon in 1988 as a messenger and is now the company’s domestic manager, is emblematic of the can-do spirit that developed Horizon’s reputation as the global marine logistics company that would always find a way.

When a customer wanted to show their gratitude after the purchase of a ship in the Tokyo shipyards, Savich purchased $150,000 of gifts on their behalf from Tiffany and Cartier. He boarded a passenger plane with the gifts and flew the same day to Tokyo. He turned around and flew back the next morning. “I had a softball game that day,” he explains.

Another time, a Horizon customer needed to get boiler pipes to Ivory Coast through Paris. However, Air France workers were on strike. Horizon chartered a plane to carry the pipes, but there was no one working at the airport who could load them up. So Savich flew to Paris, where he met up with two Horizon partners from the UK, and the three of them spent the next three days loading planes. Reach out to us directly to let us know how we can use our collective history and experience to serve you best.

(The story continues in part two and part three.)

An Overnight Rush to the Port of Houston Keeps a Heavy Lift Vessel Safe and On-Schedule

The call from a purchasing manager came into Horizon one Tuesday midday last winter. A heavy lift vessel, recently flagged into the United States, had arrived in Houston in ballast for a bulk grain load-out. The ship was scheduled to start cargo operations in less than 24 hours, then head across the North Atlantic to deliver the grain as food aid to a developing country. But there was a problem. Actually, there were two problems. The ship needed burlap and a new start air compressor before cargo operations could begin.

Burlap may seem a humble material to be threatening a ship’s on-time departure from port, but our routing specialist who took the call — a graduate of the U.S. Merchant Marine Academy — immediately understood the need. Before the ship’s crew loaded the grain, they would need to cover the bilge pump rose boxes with burlap. Without it, grain could get sucked into the bilge pump, clogging and potentially ruining this critical equipment designed to pump water out of the cargo holds.

The need for the start air compressor was obvious. While the ship’s existing start air compressor was still working, the crew had been having major mechanical issues with it. If they didn’t replace it in Houston, their next best option would be to replace it at their foreign port of destination, where we knew freight deliveries would be more complicated and costly. The shipping company would save a lot of money if we could deliver it to them in Houston.

Worst case scenario? The old start air compressor could fail during the ship’s crossing of the North Atlantic, leaving them at the mercy of the rough winter seas. Unable to restart the engine, they might be stranded or even sink.

We weren’t going to let that happen. We leaped into action on two parallel operations.

Getting the Goods by Nightfall

To preserve any possibility of transporting the burlap and start air compressor to the Port of Houston in time for the next day’s cargo operations, we had to take possession of both by nightfall. From our New York office, we immediately called the domestic vendor of the burlap and asked them to prepare the delivery for immediate pick-up.

Meanwhile, we had our partner in Germany call the German supplier of the start air compressor and ask them to stay open late. Our partner works with this German vendor very frequently and, due to their very good relationship, the vendor agreed to remain open until 8 p.m. The ability to collect that evening allowed us to transfer to the first available flight the next day into the United States.

Two Horizon trucks on two continents made their way to the suppliers. One loaded up the burlap, the other the start air compressor, and each headed directly to the nearest airport to put their deliveries on overnight flights. For the start air compressor’s flight from Germany, we arranged for wheels-up clearance so there would be no customs delays once it arrived at the airport in Houston. Both flights were soon loaded and in the air.

All Coming Together in Houston

Overnight, two flights sped toward Houston, the critical deliveries of burlap and a new start air compressor in their cargo holds. On the ground, an agent from our Houston office drove a truck to the airport and awaited the flights’ arrival.

By 3 a.m., both flights were on the ground. Our agent soon had both the burlap and the start air compressor loaded in his truck, and he departed immediately for the Port of Houston. Less than an hour later, he delivered the burlap and compressor on deck.

The ship’s crew wrapped the rose boxes, installed the new start air compressor, and proceeded to cargo operations. The grain loud-out began on schedule, and the ship was soon on its way.

Afterward, we received several calls from the purchasing manager and other leaders at the company, thanking us for our work. “Thank you for always going above and beyond for us,” one said. We were glad to do it. It’s just what we do, every day for every customer. Reach out to us for a conversation about how we can help you. 

Employee Spotlight: Rosemarie Susino, Terminal Manager

Rosemarie Susino didn’t intend to build a career at Horizon Air Freight. In 1984, she was going to school at night, taking classes in science and medicine, and planning to go into medical laboratory work. During the days, she worked at Horizon as a receptionist to pay her way through school.

That was 36 years ago.

Horizon Goes Global and Susino Grows With It

Horizon was a smaller company then, handling mostly U.S. import/export and domestic marine shipping logistics.

“We didn’t even have computers when I started working here,” says Susino. “Back then everything was manual. We would write shipping labels by hand. Now everything’s computer automated.”

But as the company grew, Susino grew with it. She worked for a while in the ocean export department, and soon she was managing the department. She would also cover for people in the air freight department when they went on vacation. For a while, she worked in the billing department.

“I’ve worked in almost every department,” she says, “and I’ve always worn more than one hat.”

In the late 1980s, Horizon started its foreign routing department and began expanding into global marine logistics. Susino was part of that expansion from the very beginning and a key player in its success, which first established Horizon in the global marine logistics market.

Today, Susino is the terminal manager, part of the upper management team working closely with CEO Steve Leondis, at Horizon’s world headquarters in New York City. The export department, routing department, and ocean and air departments all answer to her. Shipping quotes, customer service, billing, insurance claims… “I’m really involved in almost everything,” she says.

Never the Same Day Twice

Susino enjoys the diverse demands of her position. “That’s what makes the job very interesting,” she says. “This is never the same day twice. You come in and don’t know what to expect. I have such a variety of work, and that’s what I like.”

She might spend one day mostly answering emails, then come in the next day to a request by a client to move 10,000 kilos across the world overnight. “Sometimes it’s just drop everything and figure out a way,” she says, “and sometimes that gets very intense.”

That can mean long days and after-hours follow-ups, but Susino is just fine with that. “I have to be moving all the time,” she says. “I wouldn’t want to sit and do the same thing all day long.”

Still a Family Business at Heart

Susino is glad she decided to stay at Horizon and build her career with the company. “It was always a family business, and even today we all work together closely, like a family. We help each other and have each other’s backs. If somebody makes a mistake, somebody else chimes in to help.”

It all comes down to serving Horizon’s clients well. “We understand the needs of our clients,” she says, “and we know how urgent those needs are. So we all come together and make things happen for them.”

“We always find a way to get it done,” she says, adding that the people in the various departments she oversees handle most of the shipments. “But when it’s a very large shipment or urgent, then I give my insights and ideas, or even start making phone calls to assist.”

It’s always a team effort, but, as Susino says, “One way or another, we always get it done.” Reach out to us to learn more about how we can bring our service and experience to you. 

How That New Brand of Hand Sanitizer Traveled to Your Hands

Walking down the cleaning products aisle of your local grocery store, or in the personal protective equipment (PPE) section of your pharmacy, you might have noticed some new arrivals these past few months: unfamiliar brands of hand sanitizer, disinfectant sprays and wipes, masks, gloves, face shields, and all the other products we need most to prevent the spread of COVID-19. Most of them traveled halfway around the world to get there, and Horizon Air Freight helped many of them make the trip.

In the initial weeks of the coronavirus pandemic, many shelves were emptied of all those cleaning products, personal protective equipment, and other critical supplies for protecting us from infectious diseases. The major manufacturers — Lysol, Clorox, Purell, and all the other household names — simply couldn’t keep up with the radically increased demand created by the pandemic. The problem was exacerbated by the impact of emergency border closings on the global supply chain, which grounded many planes and strained the capacity of the global commercial shipping fleet.

Much of the available supply was diverted to healthcare facilities. Consumers were left to make do with their existing supplies or homemade alternatives.

Increased Demand in Commercial Shipping Leads to a Broader Mission

Here at Horizon, our first direct experience of the increased demand came from our commercial shipping clients, who have all been placing large, urgent orders for supplies to keep their crews safe. As we discussed in a recent post about the cruise ship industry, we even shipped thousands of pounds of PPE to a shipyard to protect the workers renovating a cruise ship in dry dock.

There are complexities to shipping disinfectants and hand sanitizers, some of which are classified as hazardous materials, but it’s well within our expertise. Throughout the pandemic, our clients have turned to us to get the protective supplies they need, where they need them, with all possible haste.

The surge in demand from our shipping clients prompted Alex Durante, Horizon’s director of global sales, to wonder who else might be struggling to get these critical supplies to where they were needed most. “If my clients’ ships are buying this,” he thought, “there’s got to be a whole lot of other people buying this too.”

Durante reached out to U.S. distributors who were trying to bring large shipments of protective supplies into the country as quickly as possible to restock the shelves at grocery stores and pharmacies. Many were working with smaller manufacturers in China and the Philippines. These were distributors who had previously been mostly shut out of the U.S. and other global markets by the dominance of the major brands. Now, with the pandemic creating historic demand, these smaller players had dual opportunities to open up new markets for their businesses while helping to slow the spread of disease.

Horizon stepped in as a logistics partner, helping expedite the protective supplies produced by these smaller manufacturers to the distributors who could get them on the shelves for U.S. consumers.

The Hunt for Sanitizers, Gloves, and Dispensers Never Sleeps

Shipping disinfecting products and PPEs was soon a 24/7 operation at Horizon. “Due to the time difference between Asia and the U.S., we’re working with the manufacturers in China and the Philippines at night,” says Durante. “And by day, we’re coordinating with our U.S. distributors.”

Many of these products are regulated by the FDA, so licenses must be in place and all documents in order prior to shipping. When the shipments touch down on U.S. soil, U.S. Customs often has a lot of questions. Logistics partners not experienced in importing such products can incur long and costly delays.

Sometimes we’re shipping small samples so that distributors can test these products and verify their safety and efficacy. Other days, we’re booking 15 containers full of supplies as swiftly and cost effectively as possible.

This takes a lot of proactive scheduling. Because the demand is so great and the shipping lanes so full, we don’t wait for an order to be ready. We’re booking space on ships weeks in advance, coordinating with manufacturers to know when their shipments will be available so there is always a steady stream of products loading, shipping and delivering.

One recent shipment included 95,000 pounds of disinfectant sprays in two containers. We’ve handled over a dozen such shipments in recent weeks.

Some of the most urgent supplies, we fly in. We recently flew in four multi-ton shipments of sanitary wipe dispensers, of the sort you’ve probably seen at the entrances to offices, apartment buildings, doctor’s offices, and stores.

Keeping the Economy in Motion

With an effective and widely distributed vaccine still, at best, many months away, the demand for all these cleaning supplies and PPEs likely won’t recede anytime soon. “This is going to be the way of life for the foreseeable future,” says Durante.

Before the present crisis, many of us took these products for granted. Hand sanitizer, disinfecting sprays, and all the rest were readily available, a familiar and useful commodity to which we rarely gave much thought. Today, in the midst of the pandemic, we all see how critical they are for healthcare workers saving lives, for families trying to stay healthy, and for everyone trying to keep the world economy in motion.

At Horizon, keeping the world in motion is what we do best, and we’ll keep doing our part for as long as the need continues. Reach out to us directly to learn more about how we can help you.

Horizon Air Freight’s Steve Leondis on Lenz on Business

Horizon CEO Steve Leondis recently sat down for an in-depth interview with “Lenz on Business,” a weekly business radio show that airs on WSB Radio, home to the largest news-talk audience in the country. In a far-ranging conversation, Leondis and host Jon Waterhouse discussed the founding of Horizon Air Freight in 1970, the company’s growth over the past 50 years, and his work with daughter Devon to help vulnerable children in Ghana and Zambia.

On His Family Immigrating to America

Steve’s father, Anthony Leondis, and his mother came to America in 1956 with Steve’s three older siblings. (Steve was not born yet.) Although of Greek and Italian origin, the family immigrated from Sudan.

“They wanted to give their children a better education,” says Leondis.

The Leondis family settled in Brooklyn, where Steve’s father was soon working three jobs while his mother worked at the post office and took care of the children. The days were long, but they knew they were giving their children opportunities to pursue the American dream.

On Starting Horizon with a Typewriter and a Delta 88

Anthony still wanted more for his family. He wanted them to live comfortably while doing good work in the world. So in 1970, he borrowed $600 from a friend, rented out a tiny office near JFK airport, and started Horizon Air Freight,

“He knew a little bit about freight and about the shipping industry,” says Leondis, “so he leveraged some contacts and began to move ship parts.”

In the early days, Anthony worked alone, often driving to customers in his Oldsmobile Delta 88 and filling out orders with a typewriter he kept in the car. The business was challenging, but Anthony started to build a name for Horizon and soon had to hire more staff to handle all the work.

On a Good Education and Lessons from Basketball

Fulfilling his parents’ hopes when they came to America, Leondis was accepted to Yale University and joined the basketball team. In 1980, he was named Ivy League Rookie of the Year and went on to score the third-most career field goals in Yale history.

“This was back when we were wearing leather Converse and there was no three-point line,” says Leondis.

The discipline, dedication, and teamwork he learned playing basketball would stick with him long after Yale.

“It helped me immensely as I navigated into the business career,” he says.

Seeing how basketball had helped his own success in life, in 2006 Leondis founded “Hoops on the Hill,” a non-profit organization that empowers at-risk teenagers and helps them develop their potential.

In 2020, Leondis was named one of the Legends of Ivy League Basketball in recognition of his college basketball achievements, business success, and contributions to his community.

On Joining the Family Business

Leondis wasn’t sure at first if he wanted to join the family business. His two brothers and sister were already working there while he was at Yale, and he considered striking out on his own. However, in his junior year, his father came and asked him to work for Horizon for just one year after college, to give it a chance. If he didn’t like it, he could pursue whatever he wanted instead.

Leondis agreed and started out learning the business from the bottom up. His first job was at a warehouse, loading trucks and receiving cargo. He soon discovered that he liked the business and enjoyed working in its family environment, a culture in which not only his actual relations but everyone who worked there was treated like family.

Over time, he gravitated toward operational and sales roles, and he helped lead the company’s growth. When his father was ready to retire, Leondis took over as CEO in 2014.

On Giving Back With His Daughter

On a family trip back to Africa to see where the Leondis family had come to America from, Steve’s daughter, Devon Leondis, was inspired with a “burning desire to help vulnerable children and orphans in Africa,” says Steve. “She raised money for her sweet 16 to provide fresh drinking water wells in Ghana.”

Wanting to do more, she went on to found Project Nyame Nsa. (The name means “God’s helping hands” in Twi, the dominant dialect of the Akan language in Ghana.) Steve sits on the board of directors.

The organization is dedicated to building villages with holistic support services for vulnerable and orphaned children in remote areas of Africa. They have completed their first project in Ghana and have one now underway in Zambia.

“It’s very dear to my heart,” says Leondis. “People should give back in this world.”

Listen to the Full Interview

If you’d like to hear more of the conversation, listen to the full interview at Lenz on Business.

Lenz on Business is presented by Georgia College’s J. Whitney Bunting College of Business. Listen live on Saturday nights at 6 p.m. on News 95.5, AM 750 WSB, and Reach out to us to learn more about how we can bring our service and experience to you.

How Cruise Lines are Preparing for a Post-Pandemic World

COVID-19 Hits the Cruise Industry Hard

It’s no surprise or secret that the coronavirus pandemic has dealt a major economic blow to cruise ship lines. Some of the earliest, most gripping stories of COVID-19’s spread outside of China involved quarantined cruise ships searching for safe harbor in the viral storm. After some initial scrambling to bring home everyone already at sea, most cruise ships have been in port and empty of passengers, awaiting word that it’s safe to sail again. 

Miami is the home port for many of the cruise lines in the Western Hemisphere, especially those sailing to the Caribbean and South and Central America. It’s also the headquarters of Horizon’s cruise ship division and home to our dedicated cruise industry warehouse facilities, which include refrigerated and frozen storage for the millions of pounds of food we move to cruise ships in a typical year. But as we write this, Miami is a hotspot of coronavirus cases, so we don’t anticipate cruise operations will restart there anytime soon.

“They really need to get the whole state under control before Miami-based cruise lines start thinking about cruising again,” says Alex Durante, Horizon’s director of global sales.

Indeed, just a few weeks ago, the CDC announced it was extending it’s No Sail Order (PDF) until September 30, so, at least for U.S.-embarking cruise ships, the wait continues.

That doesn’t mean that nothing is happening aboard their ships. We’ve been shipping a lot of food to feed onboard crew members who were temporarily banned from disembarking due to quarantine regulations. We’ve also shipped a high volume of personal protective equipment (PPE) to protect onboard crews, and, in one recent case, we shipped thousands of pounds of PPE to an entire shipyard to protect workers renovating a cruise ship in dry dock. Masks, gloves, face shields, hand sanitizer, disinfecting aerosol sprays: we’ve been getting it all to cruise ships around the world to keep their people safe and healthy as they prepare for what’s next.

Of necessity, we’ve developed some rapid expertise in hand sanitizers and disinfectants then passed that along to the cruise lines we serve. Sanitizers and disinfectants with high levels of alcohol are classified as hazardous freight, making them more complicated and expensive to export. We’ve been recommending alternatives with lower levels of alcohol paired with other chemicals that help to fight germs and viruses. “Buy non-hazardous,” says Durante, “and it’s a lot more cost-effective and efficient to get it to you.” It saves our customers money while still keeping everyone safe.

Smaller Adventure Lines Sailing Soon

Some of the boutique cruise lines we serve — especially those offering adventure cruises to remote areas — may start sailing again sooner than the larger lines, with embarkations from countries presently safe and open. (A few have already started.)

“If we’re shipping them ammunition to protect themselves from polar bears,” says Durante, “the barriers to reentry are probably lower.”

These smaller lines can keep all their passengers together during excursions, and it’s easier to test and screen everyone in the controlled, manageable environments they’re able to provide.

“If they’re cruising to Antarctica, French Polynesia, Greenland, or other safe areas,” says Durante, “they’re likely opening sooner.”

A Longer Wait for Large Cruise Lines

For the larger cruise lines, however, and for any lines sailing to or from countries still under heavy restrictions, the wait continues. In the meantime, most are already planning ahead for a post-pandemic world.

There are still a lot of unknowns. Will cruise lines screen passengers before they board? If so, we may be shipping them a lot of forehead thermometers and test kits. We know we’ll be shipping more gloves, masks, and sanitizers for the foreseeable future. Will buffets be replaced with table service dining? If so, that may impact the food and service equipment we’re shipping.

“Whenever the CDC and the governing bodies in other countries give the green light to start sailing again,” says Durante, “we have the infrastructure in place to support them. Whatever they need, we’ll get it to them, when and where they need it.”

From Keeping an Overhaul On-Schedule to Shipping Food All Over the World

Horizon first started supporting cruise ships several years ago when we handled some emergency overnight deliveries from Germany to the Bahamas to keep a major ship overhaul on schedule. The supplier knew Horizon due to previous urgent shipments we handed for them and recommended us to the cruise line as the forwarder who could get the parts there on-time.

“The shipowner was very happy,” says Durante, “and he asked, ‘Who did these emergencies? I never expected we’d see those parts on time.’”

The same cruise line’s logistics department then asked Durante if Horizon could help with their food deliveries. They were shipping 7,000 pounds of food per week from California to French Polynesia. “They wanted to buy wholesale in the U.S. instead of paying a fortune in port,” says Durante, “but the shipments were causing them a tremendous amount of trouble.”

Horizon and our Los Angeles partner put together an arrangement with a refrigerated and frozen warehouse in California, then set up weekly consolidated delivery schedules of food and beverages from various West Coast vendors. More than three years later, we’re still shipping 7,000-10,000 pounds of food via air for them each week.

That initial opportunity led Horizon to launch our cruise ship division, with a dedicated team and facilities initially assembled by Durante. From our new state-of-the-art refrigerated and frozen warehouse facilities in Miami and L.A., to providing up-to-the-minute statuses of every single purchase order electronically, our services were immediately in high demand. We started shipping food to cruise ships all over the world: millions of pounds of it each year.

“We went from spare parts,” says Durante, “to shipping high-end wine, lobsters, ice cream, and Porterhouse steaks. Anything and everything the guests wanted, we made the necessary logistics arrangements to get it to them.”

That eventually led to keeping cruise ships supplied with everything else they needed, from engine parts to watches and pearl necklaces for their onboard jewelry stores. 

Unlike other commercial maritime industries, the cruise industry needs two very distinct kinds of support from a maritime logistics company.

The technical division of a cruise line is very much like the technical division of a container ship company, a fishing fleet, or any of the other maritime sectors Horizon serves. We get them the parts and supplies they need to keep their ships running safe, able, and on-time.

Then there’s the hotel or hospitality division, which has far more in common with a hotel in a major urban center than a tanker ship or offshore rig. For cruise ship hospitality divisions, in addition to food and beverage items, we ship a lot of toiletries and cleaning chemicals, promotional merchandise such as mugs and T-shirts, key cards, and equipment and supplies for onboard entertainment.

“If you can ship perishable food,” says Durante, “and are able to successfully and consistently navigate through the complexity of what these shipments entail, then all the rest is easy.”

Sailing to See the World Again

At Horizon, we work every day with people who spend their lives traveling through the awe-inspiring beauty of the open seas while experiencing the many cultures and countries of this wide world. Most people don’t have such opportunities in their daily lives, but cruise ships can give them that experience, that adventure.

We look forward, for many reasons, to the day when the pandemic is brought under control. And we look forward to the time when cruise ships can get back to what they do best: give people adventures, vacations, and entertainment at sea. Whenever the time is right, we’ll be there to support them. Reach out to us for a conversation about how we can help you during this challenge. 

Steve’s Shipping News: Outsourcing Budget Management of Your Transportation Spend

We had an interesting opportunity recently to bid on an RFP put out by a Fortune 500 shipping company. It included a requirement that the respondent takes responsibility for managing the shipping company’s transportation budget for all spares, equipment, and supplies. They wanted more than a marine logistics provider. They wanted a partner who would help them beat their budget and protect their profit margins.

It’s the first time I’ve seen a requirement like this in a marine logistics RFP, but it’s well-aligned with the direction Horizon has been moving in recent years. It also makes a lot of sense as part of the larger trend in shipping toward outsourcing, remote management, and automation.

Outsourcing Marine Logistics

According to a recent survey by Gartner, 85% of shippers expect to outsource more of their supply chain and logistics in 2020. “The question no longer is whether to outsource,” says Gartner’s Courtney Rogerson, “but what and how much to outsource.”

Outsourcing is nothing new, of course. Shipping companies have outsourced their marine logistics to Horizon for 50 years and counting.  What I’m seeing though is not just an increase in the volume of marine logistics outsourcing. It’s a deepening of the relationship and a shift toward accessing more of our strategic expertise.

As Gary Wollenhaupt writes in Supply Chain Dive, “more than merely outsourcing for lower cost, companies should look for partners that provide a higher level of value in critical areas where they have expertise.”

Toward High-Value Partnerships

We’ve been moving toward these higher-value partnerships with many of our customers for years: empowering them with digital tools and experienced advice.

Our Horizon WorldTrack portal lets customers track their deliveries in real-time. Our automated financial reports help customers evaluate their vendors and keep themselves on budget. ​​And we offer guidance to all our customers as they weigh their options for speed, reliability, and cost.

All of this helps our customers manage their budgets while keeping their fleets sailing safely and on schedule. However, while we equip and counsel our customers, the daily decisions still fall on them, and they remain responsible for sticking to their budget. They’re mostly very good at it, but it is a lot of work.

Better Budget Management for Better Margins

Today, it seems to me that shipping companies are looking for more. They want partners who will work proactively with their management to streamline transportation costs and help them stay at or below budget, protecting and enhancing their profit margins. They want true two-way transparency, open communication, and shared accountability for success.

As Mark Franklin writes at DA-Desk, “The most common factor in the decision to outsource is, of course, to increase profit margins, by lowering the expenditure on labor and operational costs. Improving quality, gaining access to knowledge, and previously unachievable bulk discounts, are also driving factors.”

Mid-sized shipping companies generally can’t justify the expense of dedicated personnel to closely monitor their logistics spend, so outsourcing is an obvious way to manage labor costs. Large shipping companies see value in accessing the decades of specialized expertise that an outsourced partner like Horizon offers.

With partnerships like these, we’re able to extend our contributions beyond the day-to-day decisions. We’re taking on a larger strategic role to help shipping companies manage their annual costs. Ultimately, we’re helping them achieve better profit margins.

The COVID-19 Factor

The coronavirus pandemic didn’t create the need for outsourced logistics budget management, but it has certainly amplified its importance.

As I write this, 80% of flights worldwide are grounded. Airfreight costs are through the roof. According to a recent story in Reuters, “freight operators have had to resort to chartering flights at prices between $1.3 million to $1.7 million each between Asia and [the] United States. … That compared with about $500,000 to charter a flight on average during normal times.”

This matches our experience at Horizon, where typical air shipping costs have been about 200% higher.

As reported in a white paper by international reinsurance company Willis Re on the impact of COVID-19 on the marine industry, these costs are skyrocketing at the same time that supply chains are struggling, major ports are slowed, demand for shipping has dropped, and many shipping companies are facing unprecedented financial pressures.

Customers are depending on us more than ever to help them navigate these challenges. When air freight costs are tripled, what should still go by air, and what route will keep costs as low as possible? What should go by sea freight? What can travel by truck or train?

So many decisions that used to be routine now require careful strategic and financial analysis. Maritime logistics companies like mine can help, but it takes more than delivery-by-delivery advice. We need to be part of the larger conversation of a company’s operational costs, budgets, and revenues.

How It Works

I’m pleased to say we won the contract with that Fortune 500 shipping company, and we’re working together on a standard operating procedure through which we’ll manage their budget wisely. I’m sure there will be some adjustments as we learn together what works best, but we’re beginning to define how outsourced logistics budget management works.

The company is providing us with their transportation budget for all spares, equipment, and supplies, and we’re handling all the logistics. We’ll serve as a gatekeeper for all operational requests, analyzing routing options, and making fiscally responsible choices. Where a request risks busting their budget, we’ll push back and recommend alternatives, such as delivery to a less difficult port where costs will be lower. And of course, when a delivery is truly mission-critical, we’ll always find a way to get it where it needs to go.

We’ll provide weekly reports of vessel spends, budget adherence, and other KPIs. We’ll also monitor the performance of all their vendors, intervene where needed, and provide regular vendor reports to inform future purchasing decisions.

Most importantly, we’ll be a fully integrated partner with the company. We’ll be authorized, informed, and empowered to use our expertise to help keep their fleet sailing, on time and on budget. It’s rewarding work for us, an opportunity for everyone on the Horizon team to apply our highest value skills in the service of this customer.

I expect that more shipping companies will want similar services soon. All of us at Horizon look forward to deepening these partnerships and doing even more to help our customers succeed. Reach out to us to learn more about how we can help you during this challenge.