JOC TOP 100 IMPORTERS & EXPORTERS RANKING Shipper

Carriers Miss the Mark | Diversions Won’t Wait | Rx for Air Freight | Shippers Riding High May26 2014 V.15 N.11 THE JOURNAL $15.00

OFDELIVERING GLOBAL TRADECOMMERCE AND LOGISTICS INTELLIGENCE | SINCE 1827

AMERICA CHUNG NAM • KOCH INDUSTRIES • INTERNATIONAL PAPER • DENISON INTERNATIONAL • DUPONT • POTENTIAL INDUSTRIES • WEYERHAEUSER • DELONG • NEWPORT CH INTL. • DOW CHEMICAL • CARGILL • SIMS METAL MANAGEMENT • SHINTECH • BASF NORTH AMERICA • JC HORIZON • MEADWESTVACO • LOUIS DREYFUS COMMODITIES ALLENBERG COTTON • ARCHER DANIELS MIDLAND• TRANS COASTAL SUPPLY• INTERNATIONAL FOREST PRODUCTS • LANSING TRADE GROUP • CEDARWOOD-YOUNG (ALLAN CO.) • AL DAHRA ACX GLOBAL• JBS USA• GAVILON • EXXONMOBIL CHEMICAL• CELLMARK GROUP • CATERPILLAR • WM RECYCLE AMERICA • SCOULAR • EASTMAN CHEMICAL • ADVANCED STEEL RECOVERY • TYSON FOODS • ARMY & AIR FORCE EXCHANGE SERVICE • CYCLE LINK • PROCTER & GAMBLE • ANDERSON HAY & GRAIN • AJC INTL. • DOMTAR • GENESIS RESOURCE ENTERPRISES • RAYONIER WAL-MART STORES • TARGET • HOME DEPOT • LOWE’S • DOLE FOOD • SEARS HOLDING • CHIQUITA BRANDS INTERNATIONAL • HEINEKEN USA • SAMSUNG AMERICA • PHILIPS ELECTRONICS NORTH AMERICA • LG JOC ERS GROUP • IKEA INTERNATIONAL TOP IM •P ONIKERTER S• &J.C. EXP PENNEYORT • JARDEN • COSTCO WHOLESALE• GENERAL ELECTRIC• ASHLEY FURNITURE INDUSTRIES• RED BULL NORTH AMERICA • FAMILY DOLLAR STORES • DOLLAR TREE STORES • WHIRLPOOL • WILLIAMS-SONOMA • BIG LOTS • GAP STORES • KOHL’S • MERCEDES BENZ USA/DAIMLER TRUCKS • PIER 1 IMPORTS • DOREL INDUSTRIES • ROOMS TO GO • STAPLES • HEWLETT-PACKARD • DOLLAR GENERAL • MICHELIN NORTH AMERICA • MICHAELS STORES • SONY

CORP. OF AMERICATHE STANDARD • TOYS IN TRADE INTELLIGENC ‘R’E US • ELECTROLUX • MATTEL • NESTLE USA/ NESTLE WATERS • SOL GROUP MARKETING • BRIDGESTONE AMERICAS

JOC TOP 100 IMPORTERS & EXPORTERS RANKING

Shipper Outlook: Market Forceswww.joc.com Impacting Beneficial Cargo Owners With contract negotiations underway between the ILWU and West Coast waterfront employers, U.S. importers and exporters face a familiar dilemma: Ride out the storm and hope your goods aren’t caught up in a peak-season slowdown — or hope for the best, but plan for the worst.

By Marsha Salisbury, Chris Brooks and Bill Mongelluzzo JOC Top 100 Importers & Exporters Ranking THE STANDARD IN TRADE INTELLIGENCE

TABLE OF CONTENTS

About The Journal of Commerce . 1 About PIERS. 1 About the JOC Top 100. 2 JOC Top 100 Exporters. 3 JOC Top 100 Importers. 8 Shipper Outlook. 13 Carriers Miss the Mark. 15 Shippers Prepare for ‘What If’. 17 JOC Survey Results . 21 Learn More. 24

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About Us

THE JOURNAL OF COMMERCE The Journal of Commerce, founded in 1827, is the leading provider of business intelligence for international logistics professionals. Each bi-weekly issue of The Journal of Commerce delivers authoritative editorial content, unique insight and For more expertise to enable subscribers to make better business decisions. Through news, analysis, in-depth features and data, the team of veteran Journal of Commerce information visit transportation journalists provide readers with the actionable information they www.JOC.com need to develop successful strategies and effectively navigate day-to-day international logistics challenges.

JOC subscribers are supply chain management and transportation logistics professionals, including shippers, carriers, logistics providers, freight brokers, forwarders and other logistics service providers.

Subscribers receive the bi-weekly Journal of Commerce magazine including special reports on key topics including capacity, freight rates, compliance, container shipping, intermodal, technology and more – covering all modes of transportation including truck, rail, air and ocean.

PIERS PIERS remains the only comprehensive database of U.S. waterborne import and export shipments. We process over 17 million U.S. bills of ladings each year (including 4 million export bills of lading) through our unique Six Step Process and make it available to thousands of subscribers globally. Thanks to our unique For more infrastructure, which includes onsite port staff who have the ability to manually information visit scan every export Bill of Lading, PIERS can proudly say we are the only source for www.PIERS.com complete U.S. export transactions.

Complementing our U.S. trade intelligence, our international trade data reports on import and export transactions in emerging markets such as Mexico (including U.S. cross-border shipments), China, Brazil, India and most of South America.

+1.800.952.3839 | www.joc.com | www.piers.com 1 © Copyright JOC Group Inc. 2014 JOC Top 100 Importers & Exporters Ranking THE STANDARD IN TRADE INTELLIGENCE

About the JOC Top 100

The Journal of Commerce’s annual Top 100 Importers and Exporters ranking begins with data from PIERS that is then enhanced by information gathered from other industry sources. The figures are expressed in 20-foot equivalent units, or These rankings TEUs, the most common standard measurement of containerized ocean shipping. represent our best One standard 40-foot ocean container equals two TEUS. approximation of the total The lists are restricted to shippers — beneficial cargo owners of containerized international cargo that entered or exited U.S. ports by ocean vessel during 2013. The statistics oceanborne do not include shippers associations, carriers, non-vessel-operating common shipments by these companies and their carriers, forwarders or brokers, third-party logistics providers, banks or “to-order” subsidiaries. negotiable bills of lading, or data falling under privacy strictures. International imports and exports into and out of the U.S. via air, rail or truck are not included.

These rankings represent our best approximation of the total international oceanborne shipments by these companies and their subsidiaries.

On to the rankings.

2 +1.800.952.3839 | www.joc.com | www.piers.com 2 © Copyright JOC Group Inc. 2014 JOC TOP 100 EXPORTERS IN 2013 U.S. FOREIGN TRADE VIA OCEAN CONTAINER TRANSPORT

HEADQUARTERS WEBSITE RANK JOC TOP 100 EXPORTERS TEUS IN 2013 SECTOR NOTES 1 AMERICA CHUNG NAM 374,200 City of Industry, Calif. Recovered paper exporter is the primary supplier and sister company to Nine Dragons Paper Industries, www.acni.net China’s largest containerboard manufacturer. Also exports plastic recyclables, animal feed/grain and, Paper & Plastics/Recyclables; Animal Feed/Grains most recently, U.S. wine to China.

2 KOCH INDUSTRIES 213,600 Wichita, Kan. Private U.S. company. Major units include Georgia-Pacific, GP Harmon Recycling and Invista. Acquired www.kochind.com Buckeye Technologies in 2013. Conglomerate

Global paper and packaging company with operations in North America, Europe, Latin America, 3 INTERNATIONAL PAPER 172,600 Memphis www.ipaper.com Russia, Asia and North Africa. 2012 net sales of $28 billion. The merger to combine IP’s xpedx business- Paper/Packaging to-business distribution business with Unisource is scheduled to close in the third quarter.

4 DENISON INTERNATIONAL 112,700 Diamond Bar, Calif. Exports paper for recycling mainly to mainland China via California ports and the Port of New York- N/A New Jersey. Paper/Recyclables

5 DUPONT 105,100 Wilmington, Del. Operates in more than 90 countries. Acquired food ingredients company Danisco in 2011 and www.dupont.com remaining 28 percent of soy-based ingredients company Solae from Bunge in 2012. Sold Performance Diversified Coatings unit to Carlyle Group in February 2013.

6 POTENTIAL INDUSTRIES 103,200 Wilmington, Calif. www.potential industries.com Exports paper for recycling, primarily from California and New York-New Jersey to mainland China. Has Paper Recyclables rail access at recycling facility.

7 WEYERHAEUSER 98,400 Federal Way, Wash. Timberlands and wood products company converted to a real estate investment trust in 2010. Owns www.weyerhaeuser.com 6 million acres of timberlands in the U.S. The hardwood operations and Westwood Shipping Lines Forest/Wood Products were sold in the third quarter of 2011.

8 tie DELONG 93,400 Clinton, Wis. Family owned company with 15 locations in Wisconsin, Illinois and Ohio. Has grain, fertilizer, www.delongcompany.com agrichemicals, seed, feed and pet food operations. New 8.8-acre grain export facility at Logistics Park Animal Feed/Grain Kansas City. Transportation unit is DeLco Transport International.

NEWPORT CH INTL. 93,400 Orange, Calif. A partnership with Canusa Hershman Recycling exports wastepaper, steel scrap and plastics to Asia, www.newportchintl.com; www.chrecycling.com Paper/Metals /Plastics Recyclables mostly to China. 75 percent of its annual volume is exported.

10 DOW CHEMICAL 88,100 Midland, Mich. Diversified portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses. www.dow.com Owns Rohm & Haas. Received $2.16 billion from K-Dow arbitration. New Texas propylene plant to start Diversified up in 2015 and Texas ethylene plant to start up in 2017.

11 CARGILL 81,200 Wayzata, Minn. Private U.S. company. Divested stake in global phosphate, potash and nitrogen specialist Mosaic in www.cargill.com May 2011. Scheduled to open a new $100 million cocoa processing plant in Indonesia this year. Owns Conglomerate zero-calorie sweetener Truvia.

12 SIMS METAL MANAGEMENT 80,700 New York Divested Colorado, Arizona and Nashville operations in 2012. Invested in mixed metal recycler www.simsmm.com Chiho-Tiande Group in mainland China. Acquired U.S. Gulf shredder and feeder yards. Rhode Island Metals & Electronics/Recyclables greenfield facility completed in September 2013. 13 SHINTECH 78,400 Houston www.shintechinc.com Largest U.S. producer of polyvinyl chloride. Parent is Shin-Etsu Chemical of Japan. Chemicals

14 BASF NORTH AMERICA 75,400 Florham Park, N.J. www.basf.us North American affiliate of BASF SE, based in Ludwigshafen, Germany. Chemicals-Diversified

15 JC HORIZON 75,200 Arcadia, Calif. Serves the Asia-Pacific recycled paper, metal and plastics markets, primarily China, where it has several www.jchorizonltd.com offices. Paper/Metals/Plastics Recyclables

16 MEADWESTVACO 66,100 Richmond, Va. MWV operates in 30 countries and serves customers in more than 100 countries through a network www.mwv.com of 125 facilities in North America, South America, Europe and Asia. Spun off the consumer and office Diversified products business in a merger with ACCO Brands in May 2012.

17 LOUIS DREYFUS COMMODITIES; 65,700 Cordova, Tenn. Cotton merchandising division of Paris-based Louis Dreyfus Group acquired the global cotton operation ALLENBERG COTTON www.ldcom.com/our-business/our-platforms/cotton of Memphis-based Dunavant Enterprises in 2010. Cotton

18 ARCHER DANIELS MIDLAND 64,300 Decatur, Ill. This agricultural processor of food ingredients, animal nutrition, biofuel and industrial products has www.admworld.com 270 processing plants and 470 crop procurement facilities. Owns or leases 2,500 barges, 27,400 Agriculture railcars, 600 trucks, 1,300 trailers and 52 ships.

19 TRANS COASTAL SUPPLY 61,400 Decatur, Ill. Established in 2007. Markets grains and feed ingredients, primarily to Asia. www.transcoastalsupply.com Provides transloading. Animal Feed/Grain

20 INTERNATIONAL FOREST 60,300 Foxboro, Mass. Part of the privately owned and family operated Kraft Group, which also includes the Rand-Whitney paper and packaging business, Gillette Stadium, the New England Patriots and the New England PRODUCTS www.ifpcorp.com Revolution soccer team. Paper/Recyclables

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HEADQUARTERS WEBSITE RANK JOC TOP 100 EXPORTERS TEUS IN 2013 SECTOR NOTES

21 LANSING TRADE GROUP 54,100 Overland Park, Kan. Controls nearly 16 million bushels of elevator space. Trades whole grains and oil seeds, feed ingredients www.lansingtradegroup.com and energy products. Has a joint venture with Titan Transloading for transloading frac sand and crude Chemicals oil in the Texas Permian Basin.

22 CEDARWOOD-YOUNG (ALLAN CO.) 53,900 Baldwin Park, Calif. Processes more than 1.3 million tons a year of paper, glass, plastics, aluminum, electronics waste and www.allancompany.com other recyclables in 12 California plants. Markets to 20 countries. Paper/Recyclables

23 AL DAHRA ACX GLOBAL 53,200 Bakersfield Calif. Recently rebranded from ACX Pacific Northwest. Owns and operates hay processing plants in www.acxpacific.com Ellensburg, Washington; Stockton and Wilmington, California; and Goldsboro, North Carolina. A Animal Feed/Grain member of the Al Dahra Agricultural group of companies of the United Arab Emirates. Owned by Brazil’s JBS Group, an animal protein processing company for food, leather, pet products 24 JBS USA 51,700 Greeley, Colo. www.jbssa.com; www.jbs.com.br and biodiesel products. Owns Swift & Co. and Smithfield Beef Group, and the JBS USA unit owns Refrigerated Meats/Poultry 75 percent of Pilgrim’s Pride. Has 140 plants worldwide.

25 GAVILON 51,600 Omaha, Neb. Agriculture, fertilizer and energy commodity management. A former unit of Conagra, thereafter www.gavilon.com privatized with acquisition by Marubeni in mid-2012. Union Elevator and Warehouse in Washington, Animal Feed/Grain and AgriService of Brazil.

26 EXXONMOBIL CHEMICAL 50,200 Houston ExxonMobil subsidiary. The largest U.S. integrated refining-chemical complex at Baytown, Texas, www.exxonmobilchemical.com will expand its premium polyethylene production with a new new multibillion-dollar steam Chemicals cracker. The paper, packaging and recycling divisions are based in the U.S. Only the pulp business is based in 27 CELLMARK GROUP 50,000 Norwalk, Conn.; San Rafael, Calif. Sweden at parent Cellmark. Sources from 80 countries with sales in 125 countries. Opened a metals www.cellmark.com Paper/Paper Products/Recyclables and a chemical division.

28 tie CATERPILLAR 47,200 Peoria, Ill. Manufactures construction and mining equipment, diesel and natural gas engines, industrial gas www.caterpillar.com turbines and diesel electric locomotives. Mfg-Machinery

WM RECYCLE AMERICA 47,200 Houston A national network of paper, plastics, glass, metals and electronics recycling. Subsidiary of Waste www.recycleamerica.com Management offers collection, transfer, recycling, resource recovery, and disposal services. U.S. Diversified/Recycler developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities.

30 SCOULAR 44,500 Omaha, Neb. Privately held, employee-owned food, feed and renewable fuel agricultural products marketing www.scoular.com company. NVOCC and forwarder TSC Container Freight is a separate division. Agriculture/Foodstuffs

31 EASTMAN CHEMICAL 43,200 Kingsport, Tenn. Acquired Genovique Specialties plasticizer product lines in 2010. In 2011, divested the PET and www.eastman.com performance polymers businesses and acquired Sterling, Scandiflex, Dynaloy and TetraVitae Chemicals/Fibers/Plastics Biosciences. Acquired performance materials and specialty chemicals maker Solutia in mid-2012.

32 ADVANCED STEEL RECOVERY 42,700 Fontana, Calif. Privately owned company automates the containerization of industrial scrap steel and nonferrous www.advancedsteel.com metals through its patented FASTek machinery invention. Full-service pickup, processing and direct mill Metals/Recyclables delivery. Offers client online inventory, removal and payment tracking.

33 TYSON FOODS 41,400 Springdale, Ark. Processes and markets beef, poultry and pork and produces prepared food products. In-country poultry www.tysonfoods.com operations in Mexico, Brazil, India and China. Refrigerated Meats/Poultry

34 ARMY & AIR FORCE 38,800 Dallas The military retailer operates more than 3,100 facilities in the U.S. and worldwide. Funded solely through its sales, it sells at low price via on-base locations as well as an online and mobile exchange at EXCHANGE SERVICE www.shopmyexchange.com www.shopmyexchange.com to authorized customers. Retail

35 CYCLE LINK 37,400 Diamond Bar, Calif. Primarily handles recovered paper since 2007. Sourcing services for recovered fibers, plastics and www.cyclelink.com metals. Has offices in Japan, the U.K., the Netherlands and mainland China. Recyclables

36 PROCTER & GAMBLE 36,800 Cincinnati 176-year-old company with sales in 180 countries. Sold snack business, including Pringles, to Kellogg www.pg.com in May 2012. Mfg-Consumer Products

37 ANDERSON HAY & GRAIN 36,200 Ellensburg, Wash Works with a network of family owned farms. Exports hay and straw products from Washington, www.anderson-hay.com Oregon and its Wilmington, California, processing plant to Asia. Animal Feed

38 AJC INTERNATIONAL 34,800 Atlanta Private meat, poultry, fruit, vegetable and seafood distributor. Specialty is refrigerated foods under its www.ajcfood.com own brands. Owns AJC Logistics, operates warehouses, offers breakbulk chartered refrigerated vessel Food/Refrigerated services.

39 DOMTAR 34,300 Fort Mill, S.C.; Montreal North American manufacturer and distributor based in Montreal. Approximately 80 percent of the www.domtar.com business in paper/pulp. Acquired Attends Healthcare with manufacturing in Georgia and North Paper /Forest Products Carolina in 2011.

40 GENESIS RESOURCE ENTERPRISES 34,000 Springfield, N.J. Exports paper for recycling to Asia, primarily to mainland China via the Port of N/A New York-New Jersey. Paper/Recyclables

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HEADQUARTERS WEBSITE RANK JOC TOP 100 EXPORTERS TEUS IN 2013 SECTOR NOTES 41 RAYONIER 31,400 Jacksonville, Fla. Structured as a timber real estate investment trust with 2.7 million acres of holdings. Core businesses www.rayonier.com are timber, cellulose specialty performance fibers and real estate. About half of all sales go to Forest/Paper Products international clients in nearly 40 countries.

42 DAVID J. JOSEPH 31,200 Cincinnati A Nucor company. Scrap metals trader/recycler with 70 U.S. scrap-processing facilities, including 16 www.djj.com automobile shredders and several self-service used auto part stores. Private railcar fleet. Metal/Recyclables

43 MILITARY SURFACE DEPLOYMENT 29,900 Scott Air Force Base, Ill. Army command partners with commercial industry to deliver origin-to-destination global solutions for & DISTRIBUTION COMMAND www.sddc.army.mil Department of Defense equipment and supplies for all military services. Military Goods

44 WAL-MART STORES 29,400 Bentonville, Ark. Held a U.S. Manufacturing Summit in August 2013 with 500 suppliers. Committed to spend additional www.walmartstores.com $50 billion for more U.S. products over 10 years. Retail

45 STAPLE COTTON 29,300 Greenwood, Miss. Cotton cooperative for mid-south and southeastern upland cotton crop. Offers crop financing, COOPERATIVE ASSOCIATION www.staplcotn.com warehousing and marketing. Cotton

46 tie CONAGRA FOODS 28,900 Omaha, Neb. Packaged food company acquired Ralcorp. Owns Hebrew National, Lamb Weston, Wesson, Hunt’s, www.conagra.com Food-Diversified Marie Callender’s, among others.

PRICE SMART 28,900 San Diego Price Club founders have more than 30 owned and operated warehouse clubs in Central America, the www.pricesmart.com Caribbean and South America. Opened its third club in Colombia and second in Cali in May 2013. Membership Warehouse Club

48 FORD MOTOR 28,800 Dearborn, Mich. www.ford.com Ford’s China sales increased 41 percent year-over-year through April with 368,150 vehicles sold, up from Mfg-Automobiles 261,859 sold a year earlier, substantiating its strategy of building five plants in China by mid-decade.

49 KIMBERLY-CLARK 28,200 Dallas Health and hygiene company operates in 36 countries with its brands sold in more than 175 countries. www.kimberly-clark.com Brands include Kleenex, Scott and Huggies. To close five diaper plants in Europe before 2015. Mfg-Consumer Goods

50 EKMAN GROUP 27,700 Gothenburg, Miami, Hong Kong Ekman Group of Sweden acquired materials recovery firm KC International and formed Ekman www.ekman-co.se www.ekmanrecycling.com Recycling a decade ago. Paper and plastics specialist services include financing, equipment and Paper/Recyclables brokerage. In 2011 Ekman acquired Kwok Fung (Sino HK) Enterprise.

51 TOYOTA TSUSHO AMERICA 27,500 Georgetown, Ky. Operates trading and supply chain management within Toyota Group. Global headquarters in Japan. www.taiamerica.com Has metals, machinery/electronics, chemicals/plastics, automotive, agriculture/food and consumer Conglomerate products divisions.

52 3M 27,300 St. Paul, Minn. Acquired Ceradyne, which develops and produces advanced technical ceramics for demanding www.3m.com applications in the automotive, oil and gas, solar, industrial, electronics and defense industries, in late Diversified 2012.

53 ITOCHU INTERNATIONAL 27,000 New York www.itochu.com North American unit of parent trading company Itochu Japan. U.S. export strength in 2012 was the Conglomerate Itochu Chemicals Americas unit. Bought Dole’s packaged foods and Asia fresh businesses in April 2013.

54 SABIC INNOVATIVE PLASTICS 25,700 Pittsfield, Mass. Rebranded upon the $11.6 billion Sabic (Saudi Basic Industries Corp.) acquisition of former GE Plastics www.sabic-ip.com in 2007. Offers engineering thermoplastics materials solutions in resins, films and polymer shapes. Has Chemicals/Plastics operations in 35 countries.

55 DEERE 25,500 Moline, Ill. Celebrated its 175th birthday in 2012. Recently built new factories in India and China and plans to www.deere.com expand plants in India, Brazil, Argentina, Russia and the U.S. Mfg-Equipment

56 ASCEND PERFORMANCE MATERIALS 25,400 Houston www.ascendmaterials.com The former integrated nylon unit of Solutia (the spun-off Monsanto chemicals business that is now Chemicals owned by Eastman Chemical) bought by SK Capital Partners.

Manufacturer and marketer of knit apparel for logo, screen-print markets and work uniforms. Sock 57 tie GILDAN ACTIVEWEAR 25,200 Montreal and underwear supplier. Bought Gold Toe Moretz Holdings for $350 million in 2011. Closed remaining www.gildan.com U.S. sock plants. Has Carribean and Central America operations and Bangladesh is the hub for Asia Apparel Mfg. operations. Acquired Anvil Holdings in May 2012.

OLAM INTERNATIONAL 25,200 Summit, N.J. With global headquarters in Singapore, this processor of agricultural products and food ingredients www.olamonline.com serves 65 countries. Global commodities include cotton, wood, cocoa, coffee, cashew, sesame and rice Cotton/Spices & Vegetables products.

59 BERKSHIRE HATHAWAY 25,000 Throughout U.S. Among Warren Buffet’s companies that export are Fruit of the Loom/Union Underwear, Lubrizol, COMPANIES www.berkshirehathaway.com/subs/sublinks.html Benjamin Moore, CTB, Shaw Industries and Johns Manville. Diversified

60 RESOLUTE FOREST PRODUCTS 24,400 Montreal Previously known as AbitibiBowater. Emerged from bankruptcy protection in U.S. and Canada in www.resolutefp.com December 2010. Products include newsprint, printing papers, pulp and wood. Paper/Wood Products

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HEADQUARTERS WEBSITE RANK JOC TOP 100 EXPORTERS TEUS IN 2013 SECTOR NOTES

61 RESOURCE MANAGEMENT 23,900 City of Industry, Calif. Exports paper for recycling to Asia, primarily mainland China. COMPANIES INTERNATIONAL www.rmcrecycle.com Paper/Recyclables

62 SMITHFIELD FOODS 23,800 Smithfield, Va. A $13 billion hog producer and pork processor specializing in consumer packaged meats. Sold its www.smithfieldfoods.com Smithfield Beef unit to JBS Group in 2008. Its Butterball turkey business was sold in 2010 to Maxwell Food/Refrigerated Farms. Brands include Farmland Foods, Armour-Eckrich and John Morrell.

63 RIO TINTO MINERALS 23,400 Greenwood Village, Colo. The U.S. mineral group of Rio Tinto produces U.S. borax borates. There are also borate mines and www.borax.com; www.riotinto.com refineries near Salta, Argentina. Minerals

64 VINMAR INTERNATIONAL 22,600 Houston Global polymer and chemical marketing organization and project specialist. Offers financing. Has a www.vinmar.com fuels trading division for biodiesel, ethanol and natural gas. Chemicals

65 MERCEDES BENZ USA 22,400 Montvale, N.J. Unit of Germany’s Daimler. Responsible for U.S. distribution and marketing of Mercedes-Benz, www.mbusa.com Maybach, smart and Sprinter products. Trucks in Portland is a separate business unit. Auto/Truck

Ravago Group members in the Americas include Muehlstein, Channel Prime Alliance, Entec and 66 RAVAGO GROUP 21,500 Orlando, Fla. Ravago Manufacturing. The global group had 3.4 million tons of polymers in annual sales. Global www.ravago.com headquarters is in Belgium. Plastics, Rubber & Chemicals

67 OGO FIBERS 21,300 Richmond Hill, Ontario; A member of OGO Group. Sources in North America and Europe for the Asian market. Summerville, S.C. www.ogofibers.com Paper/Recyclables

68 ROCK-TENN 21,200 Norcross, Ga. Acquired Smurfit-Stone Container in May 2011. Makes paperboard, containerboard, consumer and www.rocktenn.com corrugated packaging. Also has operations in Canada, Mexico, Chile, Argentina and China. Paper Products/Recyclables

Operates 18 plants in 16 locations. A 10-year, $1.7 billion U.S. military contract for all ground and aircraft 69 MICHELIN NORTH AMERICA 20,800 Greenville, S.C. www.michelin-us.com tires ends in 2017. Mfg-Tire & Rubber

Markets paper, packaging and equipment for the graphics arts industry in the U.S. Southeast, Mexico, 70 PEREZ TRADING 20,100 Miami Caribbean, South America and Central America. www.pereztrading.com Paper/Packaging Largest overseas subsidiary of Japan’s Mitsui & Co., a diversified global trading, investment, and 71 MITSUI & CO. (USA) 19,900 New York service enterprise with a global network of 150 offices in 67 countries. Acquired U.S. luxury apparel and www.mitsui.com accesory retailer Paul Stuart in December 2012. Entered a 50-50 joint venture in May 2013 with Celanese Conglomerate to manufacture methanol at Celanese’s Clear Lake, Texas, plant.

72 tie DOLE FOOD 19,800 West Lake Village, Calif. One of the largest global producers and marketers of high-quality fresh fruit and fresh vegetables. www.dole.com Fruit & Vegetables

CENTRAL NATIONAL GOTTESMAN 19,800 Purchase, N.Y. A privately held pulp, paper, packaging and tissue company. Agreed last fall to buy Bradner National of www.cng-inc.com Illinois to complement the Lindemeyr division and enhance its Midwest network. Paper Products/Pulp

74 DEFENSE COMMISSARY AGENCY 19,500 Fort Lee, Va. DeCA commissaries sell groceries and household items at cost-plus-5 percent to active and retired www.commissaries.com members of the U.S. uniformed services and their families. Groceries/Household Items

75 MEGA FIBER 19,000 Brea, Calif. Exports paper for recycling to mainland China via California ports. N/A Paper/Recyclables

76 tie G.A. PAPER INTERNATIONAL 18,700 Tampa, Fla.; Markham, Ontario Based in Markham, Ontario. Exports paper, Europe pulp and containerboard primarily to the Middle www.gapaper.com East, North Africa and the Mediterranean. Paper/Recyclables

NESTLE 18,700 Glendale, Calif.; St. Louis; Swiss parent is the world’s largest food company. In 2013 organic growth was 5.1 percent in the Greenwich, Conn. Americas, 0.8 percent in Europe and 7.4 percent in Asia, Oceania and Africa. Acquired Wyeth Nutrition www.nestle.com in 2012. Food/Beverages/Pet Food

78 WH INTERNATIONAL 18,700 Lynnwood, Wash. Exports through Seattle and Tacoma, primarily to China and South Korea. N/A Logs & Lumber

79 T&T GROUP 18,600 Humble, Texas Exports plastic scrap and synthetic resins to reprocessing and compounding plants located in the www.ttgp.com Guangdong province of China. Chemicals/Recyclables

80 CGB ENTERPRISES 17,900 Mandeville, La. Large inland river shipper owned by cooperative Zen-Noh, Zen-Noh Grain and trading firm Itochu. www.cgb.com Specializes in grain, feed ingredients, soybean processing, bioenergy and fertilizer trade. Operates Agriculture/Diversified barge fleet and owns Consolidated Terminals & Logistics.

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HEADQUARTERS WEBSITE RANK JOC TOP 100 EXPORTERS TEUS IN 2013 SECTOR NOTES

81 HONEYWELL INTERNATIONAL 17,800 Morris Township, N.J. Diversified businesses supply the aerospace, automation and control, specialty materials, and www.honeywell.com transportation industries. In the past 10 years, it made over 70 acquisitions and about 50 divestitures. Diversified

82 JORDAN TRADING 17,700 Kingston, N.Y. N/A Exports recovered paper primarily to Asia, with some to Central and South America. Paper Recyclables

83 tie AMERICAN METAL EXPORT 17,500 Alhambra, Calif. Exports copper scrap to Zhejiang Tianshen Copper in China, a producer and manager of copper alloys. N/A Metal Recyclables

MILLS BROTHERS INTERNATIONAL 17,500 Kent, Wash. Family owned grain, feed and seed export trading company. Subsidiaries include Global Harvest Foods www.millsbros.com and Northwood Farms. Exports through the West Coast to Asia. Food/Grain

SEARS HOLDING 17,500 Hoffman Estates, Ill. Operating parent of Kmart and Sears since 2005. Operates 2,400 stores in the U.S. and Canada. www.searsholdings.com Among its brands are Kenmore, Craftsman, DieHard, Lands’ End, Kardashian Kollection, Joe Boxer and Retail-Consumer Goods Sandra by Sandra Lee.

86 GRAPHIC PACKAGING HOLDING 17,000 Marietta, Ga. Exports packaging for the beverage and consumer products industries. Has seven mills, 44 converting www.graphicpkg.com plants and three machinery facilities. Acquired Sierra Pacific Packaging in 2011 and Contego Packaging Paper Products Holdings and A&R Carton Holdings, both in Europe, in 2012.

87 FORNAZOR INTERNATIONAL 16,300 Hillsdale, N.J. www.fornazor.com Exporting since 1979, specializing in grain, feed ingredients and forage. Animal Feed

88 KAPSTONE PAPER AND 16,100 Northbrook, Ill. Acquired U.S. Corregated and its 14 plants and recycled paper mill to form KapStone Container several PACKAGING www.kapstonepaper.com years ago. KapStone tripled its size when it acquired the Charleston Kraft business from MeadWestvaco Paper/Paper Products thereafter.

89 IMERYS 15,900 Paris Its mission is to provide “heat resistance, mechanical strength, conductivity, coverage, barrier effect, www.imerys.com etc.,” the essential attributes for products and manufacturing processes through minerals. Minerals

90 tie TZENG LONG USA 15,500 Commerce, Calif. Paper recycling and secondary paper fiber firm is the U.S. branch of Cheng Loong, a paper and www.tzenglong.com corregated carton manufacturer in Taiwan. Owns two recycled paper-packing plants in California. Paper/Recyclables

SUNSHINE PAPER 15,500 West Covina, Calif. Parent is China Sunshine Paper Holdings and subsidiary Century Sunshine Paper Group. www.sunshinepaper.com.cn/en Manufacturing specialty in China is white top linerboard and core board. Paper/Recyclables

92 tie BAILLIE LUMBER 14,900 Hamburg, N.Y. Logs, lumber and proprietary grade lumber products. Private hardwood lumber company has www.baillie.com production facilities in the eastern United States. Forest/Wood Products

LAMEX FOODS 14,900 Bloomington, Minn. Traders in frozen and chilled foods with 16 offices in 13 countries. Corporate headquarters are in www.lamexfoodsgroup.com Frozen Foods England. Lamex Agrifoods opened in 2011.

94 TRIDENT SEAFOODS 14,500 Seattle A privately owned seafood harvester, offshore and shore-side processor and marketer since 1973. www.tridentseafoods.com Seafood Industrial minerals supplier of gel quality attapulgite, colemanite, air float kaolin, combined silica and 95 ACTIVE MINERALS INTERNATIONAL 14,300 Hunt Valley, Md. fluorspar, to the fiberglass manufacturing market. Mines, processing plants, and storage facilities in the www.activeminerals.com United States, Latin America, Europe, and Asia Minerals

Based in Baar Switzerland, Glencore, an integrated producer and marketer of commodities completed 96 GLENCORE XSTRATA 14,200 Stamford, Conn. its merger with Xstrata in May 2013. Together, there are more than 90 offices in more than 50 countries www.glencorexstrata.com Diversified with metals and minerals, energy and agricultural natural resource interests.

97 TRANS PACIFIC TRADING 13,800 Richmond, British Columbia Portland, Oregon-based Hampton Affiliates, also known as Hampton Lumber Sales, acquired Trans www.trapa.ca Pacific Trading in August 2012. Specializes in soft and hardwood lumber sales, primarily to Japan and Lumber China.

98 KAMIN 13,700 Macon, Ga. Previously part of JM Huber, now owned by Imin Partners. Operates three mines at Macon, Sandersville www.kaminllc.com and Wrens, Georgia. Produces and exports kaolin clay primarily to Asia via the Port of Savannah. Minerals-Clay

99 ZEN-NOH GRAIN 13,600 Covington, La. Zen-Noh Group, a Tokyo-based federation of agricultural cooperatives owns Zen-Noh Grain, which http://www.zennoh.or.jp/about/english/index.html specializes in grain and animal feed exports to Japan. Zen-Noh is a part owner of CGB Enterprises, Animal Feed/Grain ranked No. 69 on this year’s Top 100 Exporters list. Having served more than 85 countries, more than 3,500 U.S. companies and 300 U.S. private volunteer 100 U.S. AGENCY FOR 13,500 Washington organizations have helped provide humanitarian assistance. All commodities must be marked “From INTERNATIONAL DEVELOPMENT www.usaid.gov the American People.” PL-480 cargo has U.S.-flag cargo preference rules. The Obama administration Humanitarian Aid decided last year that aid is best spent in near-sourcing rather than shipping U.S. aid cargoes.

FOR FURTHER INFORMATION, contact Marsha Salisbury, JOC research editor, [email protected], 973-776-7828.

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HEADQUARTERS WEBSITE RANK JOC TOP 100 IMPORTERS TEUS IN 2013 SECTOR NOTES 1 WAL-MART STORES 731,500 Bentonville, Ark. Held a U.S. Manufacturing Summit in August 2013 with 500 suppliers. Committed to spend additional www.walmartstores.com $50 billion over 10 years for more U.S. products. Retail

2 TARGET 511,600 Minneapolis Has 1,789 stores and 37 distribution centers in the U.S. There are 127 stores and three distribution www.target.com centers in Canada. Retail

3 HOME DEPOT 325,200 Atlanta Operates 2,263 retail stores. including 1,977 in the U.S., Puerto Rico and Virgin Islands. Canada has 180 www.homedepot.com stores and Mexico 106. Retail

4 LOWE’S 236,500 Mooresville, N.C. Lowe’s has more than 1,830 home improvement and hardware stores serving 15 million customers a www.lowes.com week in the U.S., Canada and Mexico. Retail

5 DOLE FOOD 211,200 Westlake Village, Calif. www.dole.com One of the largest global producers and marketers of high-quality fresh fruit and fresh vegetables. The Diversified packaged foods and Asia fresh businesses were sold to Itochu in April 2013.

6 SEARS HOLDING 207,700 Hoffman Estates, Ill. Operating parent of Kmart and Sears since 2005. Operates 2,400 stores in the U.S. and Canada. www.searsholdings.com Among its brands are Kenmore, Craftsman, DieHard, Lands’ End, Kardashian Kollection, Joe Boxer and Retail Sandra by Sandra Lee.

7 CHIQUITA BRANDS 162,600 Charlotte, N.C.. Operates Great White Fleet liner services. Will move its port call from Gulfport, Mississippi, to New INTERNATIONAL www.chiquita.com Orleans by the first quarter of 2015 after a nearly 40-year hiatus. Fresh Fruit and Vegetables

8 HEINEKEN USA 149,300 White Plains, N.Y. In over 70 countries and operates more than 165 breweries. Offers more than 200 specialty beers and heinekeninternational.com ciders, including Heineken, Amstel and Fosters. Beverages

9 SAMSUNG AMERICA 135,400 Ridgefield Park, N.J. Member of Samsung Group of Korea. Global flagship unit is electronics. U.S. divisions include www.samsung.com electronics, enterprise, telecommunications and semiconductors. Conglomerate

10 Andover, Mass. PHILIPS ELECTRONICS 128,600 Subsidiary of Dutch company Royal Phillips Electronics. Operates three divisions: health care, lighting NORTH AMERICA www.usa.philips.com Electronics and consumer lifestyle electronics.

11 LG GROUP 127,200 Englewood Cliffs, N.J. South Korea industrial group. Major business units are chemicals, electronics/home appliances and www.lgcorp.com telecommunications. Made the first radio in Korea in 1959. Formerly known as Lucky Goldstar. Conglomerate

12 IKEA INTERNATIONAL 115,100 Conshohocken, Pa. Owned by the Stichting INGKA Foundation, the group has 298 stores in 26 countries plus 40 stores in www.ikea.com 15 countries franchised outside of the group. Has 1,084 suppliers in 53 countries. Retail

13 NIKE 94,500 Beaverton, Ore. Sells footwear, apparel, equipment and accessory products worldwide. Brands include Converse, www.nikebiz.com Hurley International and Nike Golf. Umbro and Cole Haan have been divested. Footwear & Apparel

14 J.C. PENNEY 92,687 Plano, Texas www.jcpenney.net Has 1,100 apparel and home furnishings stores in the U.S. and Puerto Rico. There are now 476 Sephora Retail shops in the stores.

15 JARDEN 90,000 Rye, N.Y. www.jarden.com Supplies penny blanks to the U.S. Mint. Brands include Ball Jars, Yankee Candle, First Alert, Mr. Coffee, Outdoor & Home Goods Sunbeam, Oster, Crock-Pot, Pine Mountain Fire Logs and Coleman.

16 COSTCO WHOLESALE 88,700 Issaquah, Wash. Operates 652 warehouses, including 463 in the U.S. and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in www.costco.com Retail the U.K., 19 in Japan, 10 in Taiwan, 10 in South Korea and five in Australia.

17 GENERAL ELECTRIC 79,100 Fairfield, Conn. Diversified global infrastructure and finance company. More than half of its revenue is generated www.ge.com outside the United States. Conglomerate

18 ASHLEY FURNITURE INDUSTRIES 77,900 Arcadia, Wis. Private manufacturer and distributor to licensed Ashley Furniture Home Stores and dealers. www.ashleyfurniture.com Furniture

19 RED BULL NORTH AMERICA 76,300 Santa Monica, Calif. Private Austrian company with high-caffeine energy drink. Owns U.S. Red Bull soccer team and www.redbull.com Newark, New Jersey, soccer stadium. Beverages

20 FAMILY DOLLAR STORES 68,600 Matthews, N.C. www.familydollar.com Operates 7,900 stores in 46 states with sales exceeding $10 billion. Retail

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HEADQUARTERS WEBSITE RANK JOC TOP 100 IMPORTERS TEUS IN 2013 SECTOR NOTES 21 DOLLAR TREE STORES 66,500 Chesapeake, Va. Operates 4,992 discount variety retail stores in the U.S. and Canada under the names Dollar Tree, www.dollartree.com Deal$, Dollar Tree Deal$, Dollar Giant and Dollar Bills. Retail

22 WHIRLPOOL 65,300 Benton Harbor, Mich. Whirlpool, Maytag, KitchenAid, Jenn-Air and Amana brands sold primarily to retailers, distributors and www.whirlpoolcorp.com builders. Appliances

Nationwide specialty retailer with several brands: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, 23 WILLIAMS-SONOMA 56,700 San Francisco williams-sonomainc.com PBteen, West Elm and W-S Home. Acquired Rejuvination in November 2011. Retail

24 BIG LOTS 55,500 Columbus, Ohio www.biglotscorporate.com Formerly Consolidated Stores, the closeout retailer has more than 1,500 retail stores in the U.S. and five Closeout Retail distribution centers that total nearly 9 million square feet.

25 GAP STORES 55,200 San Francisco Specialty retailer operates five apparel brands: Gap, Old Navy, Banana Republic, Piperlime and Athleta. www.gap.com Global sourcing with largest share from mainland China. Retail

26 KOHL’S 51,300 Menomonee, Wis. Operates more than 1,100 family oriented department stores in 49 states, along with nine distribution www.kohls.com centers. Retail

27 MERCEDES BENZ USA/ 47,300 Montvale, N.J.; Portland, Ore. Unit of Germany’s Daimler. Mercedes Benz USA is responsible for U.S. distribution and marketing DAIMLER TRUCKS www.mbusa.com of Mercedes-Benz, Maybach, smart and Sprinter products. Daimler Trucks in Portland is a separate Motor Vehicles/Trucks business unit.

28 PIER 1 IMPORTS 46,000 Fort Worth, Texas www.pier1.com Furniture and accessories retailer has more than 1,000 stores in the U.S. and Canada. Retail

29 DOREL INDUSTRIES 45,800 Montreal Brands include Ameriwood, Pacific Cycle, Cycling Sports, Altra Furniture and Cosco Home and Office. www.dorel.com Furniture/Bicycles Annual sales reached $2.4 billion in 2013.

30 ROOMS TO GO 43,700 Seffner, Fla. Private Seaman family “packaged room settings” furniture business with more than 150 stores and www.roomstogo.com showrooms. Most inventory has “next day delivery.” Retail Furniture

31 STAPLES 43,600 Framingham, Mass. Operates throughout North and South America, Europe, Asia, Australia and New Zealand. www.staples.com Retail

32 HEWLETT-PACKARD 42,900 Palo Alto, Calif. www.hp.com Offers IT infrastructure, global services, business and home computing, as well as imaging and Computer Technology printing. In joint venture with Foxconn for cloud-optimized servers.

33 DOLLAR GENERAL 42,600 Goodlettsville, Tenn. Operates 11,000 discount variety retail stores in 40 states with 12 distribution centers. www.dollargeneral.com Retail

34 MICHELIN NORTH AMERICA 40,700 Greenville, S.C. Operates eight plants in 16 locations. Manufactures and sells tires for airplanes, automobiles, farm www.michelin-us.com equipment, heavy-duty trucks, motorcycles, bicycles and the space shuttle. Manufactures tires in Tires Alabama, Indiana, Ohio, Oklahoma, North Carolina and South Carolina.

35 MICHAELS STORES 38,000 Irving, Texas www.michaels.com Largest arts and crafts specialty retailer in the U.S. with 1,105 Michaels and 123 Araron Brothers stores. Retail

36 tie SONY CORP. OF AMERICA 37,200 New York www.sony.com Sells music, entertainment, computers, electronics products and semiconductors. Electronics

TOYS ‘R’ US 37,200 Wayne, N.J. Has a 60-foot ferris wheel in its Times Square flagship store. Owned by private equity. Acquired FAO www.toysrusinc.com/about-us Schwartz, etoys and KB Toys over the last several years. Has 600 stores in the U.S; 715 international Toys-Retail stores and 180 licensed stores in 35 countries.

38 ELECTROLUX 36,600 Charlotte, N.C.; Stockholm www.electrolux.com Household and commercial appliance brands include Electrolux, AEG, Frigidaire and Eureka. Sells Appliances more than 50 million products to customers in 150 countries every year.

39 tie MATTEL 36,400 El Segundo, Calif. Brands include Barbie, Hot Wheels, Matchbox, American Girl and Fisher-Price. Acquired Mega Brands’ www.mattel.com Mega Bloks in April. Toys

NESTLE USA/NESTLE WATERS 36,400 Glendale, Calif.; St. Louis; Swiss parent is the world’s largest food company. In 2013 organic growth was 5.1 percent in the Greenwich, Conn. Americas, 0.8 percent in Europe and 7.4 percent in Asia, Oceania and Africa. Acquired Wyeth Nutrition www.nestleusa.com www.nestlewaters.com in 2012. Food/Beverages/Pet Food

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HEADQUARTERS WEBSITE RANK JOC TOP 100 IMPORTERS TEUS IN 2013 SECTOR NOTES 41 SOL GROUP MARKETING 35,400 Pompano Beach, Fla. A subsidiary of Ireland’s Fyffes PLC. Specializes in cantaloupes, watermelons and honeydews from its solgroup-marketing.com farms in Honduras. Also markets Turbana bananas and Fyffe pineapples. Fruit

42 BRIDGESTONE AMERICAS 35,200 Nashville, Tenn. www.bridgestone-firestone.com Americas holding company for Japan’s Bridgestone. Has more than 50 production facilities in the Tires, Auto Products Americas.

43 BMW OF NORTH AMERICA 34,800 Woodcliff Lake, N.J. www.bmwusa.com Imports and distributes BMW, Rolls-Royce, MINi brand vehicles and light trucks along with parts for the Motor Vehicles South Carolina assembly plant. A regional distribution center is in Nazareth, Pennsylvania.

44 ANHEUSER BUSCH INBEV 34,700 St. Louis In 2008 Anheuser-Busch combined with Belgium-based InBev. Its merger with Grupo Modelo in a www.anheuser-busch.com transaction valued at $20.1 billion was completed a year ago. Beverages

45 BEST BUY 33,300 Richfield, Minn. Consumer electronics and appliance retailer operates 1,968 stores in 54.9 million square feet. www.bestbuy.com Retail

46 CANON USA 33,200 Melville, N.Y. Subsidiary of Japan’s Canon. Opened new U.S. headquarters in Melville, New York, in 2012. www.canon.com Photo Imaging

47 tie SOUTHERN WINES & 32,700 Miami Founded in 1968, the distributor operates in 35 states along with several joint ventures. Represents SPIRITS OF AMERICA www.southernwine.com more than 1,500 suppliers with more than 5,000 brands. Beverages

Operates trading and supply chain management within Toyota Group. Global headquarters in Japan. TOYOTA TSUSHO AMERICA 32,700 Florence, Ky. www.taiamerica.com Divisions include metals, machinery/electronics, chemicals/plastics, automotive, agriculture/food and Conglomerate consumer products.

49 PANASONIC CORP. 32,000 Secaucus, N.J. Formerly known as Matsushita Electric of America. Brands include Panasonic, Technics, Quasar and JVC. Moved headquarters to Newark, New Jersey, in 2013 OF NORTH AMERICA www.panasonic.com Electronics

50 GILDAN ACTIVEWEAR 31,300 Montreal Manufacturer and marketer of knit apparel for logo, screen-print markets and work uniforms. Sock and www.gildan.com underwear supplier. Bought Gold Toe Moretz Holdings for $350 million in 2011. Closed remaining U.S. Apparel sock plants. Has Caribbean and Central America operations. Acquired Anvil Holdings in May 2012.

51 HANKOOK TIRE AMERICA 31,000 Wayne, N.J. Parent is South Korea’s Hankook Tire. The company was feted by the White House for its foreign direct www.hankooktireusa.com investment in its business expansion. Michelin sold its 10 percent stake three years ago. Tires

52 BED BATH & BEYOND 29,600 Union, N.J. Owns more than 1,400 stores including Christmas Tree Shops, Harmon, buybuyBaby and a BtoB www.worldmarket.com ; www.bedbathandbeyond.com distributor, Linens Holdings. Acquired Cost Plus World Market in June 2012. Retail

53 Torrance, Calif. AMERICAN HONDA MOTOR, 29,400 Makes motorcycles, cars and lawnmowers. Subsidiary of Japan’s Honda Motor. HONDA NORTH AMERICA www.honda.com Automotive Goods

54 MACY’S 29,200 Cincinnati The company operates the Macy’s and Bloomingdale’s brands with about 840 department stores in 45 www.federated-fds.com states along with 12 Bloomingdale’s Outlet stores. Dubai has a licensed Bloomingdales. Retail

55 SPECTRUM BRANDS HOLDINGS 28,100 Middleton, Wis. www.spectrumbrands.com The Applica Consumer Products and Salton merger was later rebranded as Russell Hobbs. Brands Appliances include Black & Decker, George Foreman, Farberware®, Juiceman and Toastmaster.

56 CATERPILLAR 27,800 Peoria, Ill. www.cat.com 75 Cat machines have been helping to enlarge the Panama Canal since 2007. The business model uses Machinery & Equipment a global dealer network for its 300 equipment models.

57 ITOCHU INTERNATIONAL 27,300 New York www.itochu.com North American unit of parent trading company Itochu Japan. Acquired Dole’s packaged foods and Conglomerate Asia fresh businesses in April 2013.

58 CONTINENTAL TIRE 27,000 Fort Mill, S.C. www.continentaltire.com Tires High-performance tire manufacturer for automobiles, trucks and buses. Also known as conti-tires.

59 tie ARAUCO WOOD PRODUCTS 26,300 Atlanta Santiago, Chile, headquarters. Parent is Celulosa Arauco y Constitucion, Chile’s largest pulp and paper www.arauco.cl producer. Forestry, wood pulp, sawn timber and panel business units. Acquisitions in the last few Forest Products yerars include a North Carolina Moncure panel mill and the Flakeboard panel company in 2012.

ROSS STORES 26,300 Pleasanton, Calif. www.rossstores.com Discount apparel and home goods retailer operates more than 1,000 Ross Dress for Less stores and Retail DD’s Discounts stores.

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HEADQUARTERS WEBSITE RANK JOC TOP 100 IMPORTERS TEUS IN 2013 SECTOR NOTES 61 FRESH DEL MONTE PRODUCE 25,800 Coral Gables, Fla. Fresh Del Monte Produce is not affiliated with Del Monte Foods, the owner of the Del Monte trademark. www.freshdelmonte.com Foods

62 tie NISSAN NORTH AMERICA 25,200 Franklin, Tenn. U.S. manufacturing plants in Smyrna and Decherd, Tennessee, and in Canton, Mississippi. New York www.nissanusa.com City selected the Nissan NV200 as the city’s exclusive taxi starting in late 2013. Automobiles

HASBRO 25,200 Pawtucket, R.I. Brands include Play-Doh, Mr. Potato Head, Transformers, Nerf, Playskool, My Little Pony, G.I. Joe, www.hasbro.com Monopoly and a Sesame Street toy line. Toys

64 GEA PRODUCTS 24,600 Loisville, Ky. Imports through the West Coast to Asia, mostly from China. www.gea.com Appliances

65 tie KEYSTONE AUTOMOTIVE 23,800 Exeter, Pa. Wholesale distributor and marketer of aftermarket automotive equipment and accessories with 25 INDUSTRIES www.keystoneautomotive.com stores, five distribution centers, 20 cross-docks and 350 trucks. Auto Parts

MOBIS PARTS AMERICA 23,800 Miami Based in Dusseldorf. Auto parts move primarily to South Korea with additional cargo to Central www.mobisalabama.com America and the Caribbean. Auto Parts

67 CONAIR 23,500 East Windsor, N.J. Private personal care company with distribution centers in East Windsor, New Jersey, Phoenix and a www.conair.com manufacturing facility in Rantoul, Illinois.. Appliances & Personal Care

68 BOB’S DISCOUNT FURNITURE 22,800 Manchester, Conn. www.mybobs.com Operates 50 discount furniture showrooms in 11 states concentrated in the Northeast. Serves free coffee Furniture and dessert. Delivers 15,000 pieces a week through nine delivery hubs.

69 VF 22,500 Greensboro, N.C. www.vfc.com Apparel manufacturer acquired Timberland for $2.3 billion in September 2011. Other brands include Apparel North Face, Nautica, Wrangler and Vans.

70 HANES BRANDS 22,000 Winston-Salem, N.C. Branded under basics include L’Eggs, Just My Size, Champion, Bali, Playtex, Wonderbra, Outer Banks www.hanesbrands.com and Barely There. Apparel

71 COASTER OF AMERICA 21,600 Santa Fe Springs, Calif. U.S. furniture distributor with seven branches supporting nationwide dealer network. www.coastercompany.com Furniture

72 FURNITURE BRANDS 21,500 Clayton, Mo. Integrated designer, manufacturer and home furnishings retailer. Overseas manufacturing plants in INTERNATIONAL www.furniturebrands.com Mexico, the Philippines and Indonesia. There are 12 U.S. distribution centers and 11 plants. Furniture

73 TJX 21,000 Framingham, Mass. Opportunistic buying discount retailer of apparel and home fashions. Store brands include www.tjx.com HomeGoods, TJ Maxx and Marshalls. Retail

74 RAYMOUR AND FLANIGAN 20,900 Liverpool, N.Y. FURNITURE www.raymourflanigan.com Northeast U.S. family owned furniture retailer with 95 stores and showrooms. Retail

75 ADIDAS GROUP 20,700 Portland, Ore. www.adidas-group.com Based in Germany. Owns Taylor-Made-Adidas Golf, Rockport, Reebok and CCM-Hockey. Sports/Lifestyle

76 FALKEN TIRE 20,600 Rancho Cucamonga, Calif. Subsidiary of Sumitomo Rubber Industries of Japan, produces high-performance racing tires. www.falkentires.com Distribution centers in California, Tennessee, New Jersey, Texas and Florida. Tires

77 PHILLIPS VAN HEUSEN 20,100 New York Owns more than a dozen apparel brands, including Calvin Klein, Izod, Bass, Arrow and Tommy Hilfiger www.pvh.com in addition to licensed brands. Apparel

78 PAYLESS SHOE SOURCE 19,900 Topeka, Kan. www.paylesscorporate.com Parent company is Collective Brands of Topeka, Kansas. Operates 4,400 stores in 30 countries. Retail

79 JOANN FABRIC AND 19,100 Hudson, Ohio The chain sells fabric, craft and sewing materials. Previously publicly traded, merged with private equity firm Leonard Green & Partners in 2011. Has distribution centers in Hudson, Ohio; Visalia, CRAFT STORES www.joann.com Retail California; and Opelika, Alabama

80 DEL MONTE FOODS 18,900 San Francisco www.delmonte.com Fresh Del Monte Produce is not affiliated with Del Monte Foods, the owner of the Del Monte Foods trademark.

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HEADQUARTERS WEBSITE RANK JOC TOP 100 IMPORTERS TEUS IN 2013 SECTOR NOTES 81 tie GITI TIRE 18,700 Rancho Cucamonga, Calif. Based in Singapore and entered the China market in 1993. China’s largest tire manufacturer also has www.gititire.com plants in Indonesia manufacturing radial and bias tires. Tires

MARUBENI AMERICA 18,700 New York Largest overseas subsidiary of Japanese trading house Marubeni Corp. Top products include chemicals www.marubeni-usa.com and machinery. Conglomerate

Deere celebrated its 175th birthday in 2012. Net sales in 2012 were $37.8 billion. New factory construction 83 DEERE 18,400 Moline, Ill. www.deere.com in India and China along with plant expansion plans for India, Brazil, Argentina, Russia and the U.S. Mfg-Equipment continue.

84 tie WALGREEN 18,200 Deerfield, Ill. www.walgreens.com Largest U.S. drugstore chain with 8,699 stores, including Duane Reade, in 50 states, the District of Retail Columbia, Puerto Rico, Guam and the U.S. Virgin Islands.

LIMITED BRANDS 18,200 Columbus, Ohio Brands include Victoria’s Secret, PINK, Bath and Body Works, La Senza and Henri Bendel. Mast Global www.limitedbrands.com provides production, sourcing and logistics. Retail

86 TRACTOR SUPPLY 17,600 Brentwood, Tenn. Begun as a small tractor parts business, it now has 1,300 stores in 48 states in rural America. www.tractorsupply.com Retail

87 tie DUPONT 17,500 Wilmington, Del. Acquired food ingredients company Danisco in 2011. Bought remaining 28 percent of soy-based www.dupont.com ingredients company Solae from Bunge in 2012. Sold Performance Coatings unit to Carlyle Group in Diversified 2013.

KROGER 17,500 Cincinnati, Ohio Fred Meyers stores are a department store unit of grocery retailer Kroger. Offers general merchandise ir.kroger.com and foodstuffs. Retail

FONTERRA USA 17,500 Rosemont, Ill. Largest cooperative in New Zealand with more than 16,000 dairy farmers supplying 22 billion liters of www.fonterra.com milk a year. Some of the New Zealand production is traded on Global Dairy Trade, an online platform. Dairy Products

90 CARDINAL HEALTH 17,300 Dublin, Ohio Provides pharmaceuticals and medical products to thousands of locations daily. Manufactures medical www.cardinal.com and surgical products, including gloves, surgical apparel and fluid management products.. Medical Supplies

91 HON HAI PRECISION INDUSTRIES 17,100 Houston Anchor company of the Taiwan-based contract electronics manufacturer Hon Hai/Foxconn Technology www.foxconn.com Group. Also offers design, engineering, machine tooling and after sales services. Largest exporter in Electronics greater China.

92 RICOH AMERICAS 16,800 West Caldwell, N.J. Parent is Japan’s Ricoh Co. Distributor is IKON Office Solutions. Ricoh put up the first billboard in New www.ricoh-usa.com York’s Times Square that was totally wind- and solar-powered. Imaging Technolgy

93 HAIER AMERICA TRADING 16,300 New York Subsidiary of China’s Haier Group. The appliance and consumer electronics business has operated in www.haieramerica.com the U.S. since 1999 and will relocate headquarters to Wayne, New Jersey, in the third quarter of 2014. Appliances

94 tie EUROMARKET DESIGNS 15,800 Northbrook, Ill. Privately owned by Otto Group of Hamburg, the contemporary home goods retailer known as Crate www.crateandbarrel.com & Barrel also operates CB2 and partners with the Land of Nod. The 100-store chain has U.S., Canada, Retail Mexico, Singapore and Dubai locations.

TOYO TIRE & RUBBER 15,800 Cypress, Calif. Unit of Japanese tiremaker. Japanese sales represent almost half of annual revenue. Owns 75 percent www.toyotires.com share of Shandong Silverstone Luhe Rubber & Tyre in China. Warehouses in California, Texas, Georgia, Tires Illinois and Pennsylvania.

CVS/CAREMARK 15,800 Woonsocket, R.I. www.cvs.com 20 distribution centers with about 11.5 million square feet handle 7,660 stores. Retail

97 FIRST SOLAR ELECTRIC 15,600 Tempe, Ariz. investor.firstsolar.com Low-cost alternative to retail electric in non-subsidized solar electric modules with proprietary Solar Electric semiconductor technology for worldwide rural applications. Has recycling program.

98 KIA MOTORS AMERICA 15,300 West Point, Ga. U.S. marketing and distribution arm of Kia Motors of Seoul, South Korea. First U.S. plant opened in www.kia.com; www.kmmgusa.com 2010 in West Point, Ga., to make the Sorento and Optima models. Automobiles

99 tie GOYA FOODS 15,100 Secaucus, N.J. The largest Hispanic-owned food company in the U.S. is family owned. www.goya.com Foods

DSW 15,100 Columbus, Ohio Footwear and accessories retailer completed merger with Retails Ventures in May 2011. Operates 394 investors.dswshoe.com stores in 42 states and 356 leased departments for other retailers as of May 2014. Retail

FOR FURTHER INFORMATION, contact Marsha Salisbury, JOC research editor, [email protected], 973-776-7828.

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SHIPPER OUTLOOK:

A LOOK AT THE MARKET FORCES IMPACTING BENEFICIAL CARGO OWNERS

You’re the owner of back-to-school goods due to arrive at a U.S. West Coast port in June for delivery to retail shelves in early July. If you’ve been managing cargo for a decade or more, you remember or certainly have read about the 2002 lockout of West Coast longshore workers that crippled supply chains and cost the U.S. economy billions of dollars. And if you’re a neophyte, then you need only go back a year to contentious talks on the East Coast that likewise caused disruption throughout U.S. supply chains.

With this month’s launch of contract negotiations between the International Longshore and Warehouse Union and West Coast waterfront employers, U.S. U.S. importers and importers and exporters again face a dilemma: Ride out the storm, take your exporters again face chances and continue to ship through any of the large West Coast ports handling a dilemma: Ride out the bulk of Asian imports and exports, hoping your goods aren’t caught up in a the storm or hope for the best, but peak-season slowdown — or hope for the best, but plan for the worst. plan for the worst. According to two new shipper surveys — one by the JOC and the other by investment firm Wolfe Research — a majority of cargo owners are opting for the path of least resistance by planning to divert at least some of their goods through ports on the U.S. East or Gulf Coasts or through Canada and Mexico to avoid potential disruption in the run-up to a new West Coast longshore contract to replace the six-year deal that expires on June 30.

It’s another reminder of who actually controls the movement of freight: the beneficial cargo owners such as those appearing on The JOC Top 100 Importers and Exporters Lists.

But as we enter the backstretch of 2014, the ILWU negotiations are just one story The ILWU negotiations line in what is developing as a turnkey year for supply chain interests. The Wolfe are just one story line in survey is particularly illuminating in its highs and lows. Consider the following: what is developing as a turnkey year for supply chain interests.

Shippers responding to the March-April survey expect same-store shipment volumes to increase 3.5 percent over the next 12 months, the highest volume expectation in the quarterly survey since the boom post- recession year of 2010.

Inventory levels are running moderately higher in the second quarter compared to a year earlier, yet about half of respondents expect shipping

activity to increase through June, the highest percentage in the survey since 2010.

Rail service, disrupted so severely during the harsh winter, received its lowest grade from shippers in 10 years. According to Mark Szakonyi, Seniroe Editor at the Journal of Commerce, intermodal operators will have to restore confidence quickly to expand the domestic volumes that Intermodal operators will have to restore have led their growth for the better part of three years. That will include confidence quickly freeing up capacity that has constrained to some degree 75 percent of survey respondents.

Truckload shippers expect rates to increase 2.4 percent, net of fuel, over the next 12 months, the highest expected truckload increase in nearly two years.

A record number of shippers — 38 percent — plan to shift some of their heavy freight volumes from air to ocean, extending a modal shift analyzed in the JOC’s May 12 issue.

And perhaps the biggest takeaway is this: 71 percent of shippers responding to the Wolfe survey expect shipment volumes to grow over the next year, up from 62 percent a quarter ago. A record number of All signs point to increasing demand. That’s the good news. The bad news is that shippers — 38 percent — plan to shift some of their with landside capacity constraints, the U.S. infrastructure may not be in position to heavy freight volumes handle it efficiently. from air to ocean, But as we celebrate the Top 100 Importers and Exporters in this whitepaper, the most pressing issue over the next few months will be what’s going on along the West Coast. Bill Mongelluzzo looks at the container shipping landscape for providers and cargo owners as the first half of the year winds down.

Carriers Miss the Mark

After two months of negotiations, ocean carriers in the eastbound trans-Pacific trade emerged much as they did in the past few service contracting seasons: in pretty rough shape. Unless carriers can score impressive gains on the spot market and with It looks like peak-season surcharges, neither of which are guaranteed, it looks like they will lose (carriers) will lose money again in the busiest U.S. trade lane, and that doesn’t bode well for carriers that money again in the busiest U.S. as a group have notched billion-dollar losses in four of the last five years. trade lane. Most of the major retailers and other large importers have signed contracts covering the period from May 1, 2014, to April 30, 2015. The average freight rate for shipping a 40-foot container from Asia to the West Coast will be well below the $2,000 rate carriers consider break-even for the services.

Although service contract negotiations between beneficial cargo owners and shipping lines are confidential, anecdotal reports indicate the average freight rate from Asia to the West Coast is $1,750 per FEU, with some importers signing at lower rates than that. The average rate on an all-water service to the U.S. East Coast is $2,900.

Ocean carriers that are pricing particularly aggressively, putting volume and market share above what could be considered good business sense, are reportedly signing importers to one-year contracts at $1,650 per FEU to the West Coast and $2,650 to the East Coast.

As they did last year, carriers are flooding the Asia-North American trade lanes to both coasts with vessels capable of carrying 8,000 or more 20-foot container units. West Coast services now include many vessels in the 10,000- to 14,000- TEU range. Although these large, fuel-efficient vessels offer carriers savings of 40 to 60 percent per slot compared with older Panamax ships in the 4,800-TEU range, carriers aren’t pocketing the savings to stem losses. Rather, it seems carriers are passing their savings on to beneficial cargo owners.

Because they aren’t willing to risk a loss of market share by increasing rates, carriers this year will rely more than ever on spot market rate increases to secure Carriers this year will rely more short-term gains when cargo volumes spike. Non-vessel-operating common than ever on carriers and smaller BCOs typically utilize the spot markets. spot market rate increases to secure Recent carrier actions underscore their plans to increase reliance on the spot short-term gains. market. The Transpacific Stabilization Agreement, a discussion group of 15 carriers in the eastbound Pacific, said on April 30 that carriers would seek a peak-season surcharge of $400 per FEU to all destinations, effective June 15. The TSA said vessel load factors to West Coast ports were in the mid-90s, and utilization rates to the East Coast were in the mid-90s to 100 percent.

TSA members previously announced a May 15 general rate increase of $300 per FEU to the West Coast and $400 to the East Coast.

Although those GRIs, plus the $400 peak-season surcharge, make it appear that rates will increase dramatically, most GRIs tend to deteriorate soon after they’re implemented. In the five months since November 2013, for example, carriers in one form or another announced rate hikes totaling $1,500 per FEU, but as of late April, the total increase remaining was just $200, according to research firm Alphaliner.

But longshore negotiations could figure into the mix. This year will witness an earlier-than-usual spike in cargo due to contract negotiations between Most GRIs tend to deteriorate soon after the International Longshore and Warehouse Union and the Pacific Maritime they’re implemented. Association. The current six-year contract will expire on July 1, and some BCOs are shipping early in case the negotiations trigger work stoppages or slowdowns.

Ben Hackett, who publishes the monthly Global Port Tracker report with the National Retail Federation, said carriers should achieve a temporary firming of freight rates on the spot market. He anticipates ships to be full and rates to be firm in the short term, but rates then will slide because the cascading of big ships from the Asia-Europe trade into the trans-Pacific will continue.

This year’s service contract season in the eastbound Pacific undoubtedly has some features that are different from past years. Some lines, for example, are walking away from intermodal rail shipments to inland locations that don’t generate sufficient export cargo to the seaports.

Many carriers this year are focusing on taking as much cost as possible out of the supply chain. That has led some carriers to emphasize cargo that is carried port-to- port from Asia to the West Coast, where many marine containers are transloaded into 53-foot domestic containers for inland movement.

Shippers say they are experiencing additional costs in this contract year. Carriers for the most part have completed the sale of their chassis to leasing companies and chassis pools, for example. That means many BCOs for the first time are paying directly for the daily use of chassis.

Another distinguishing factor of this year’s contracting season is that, for the first time on For the first time on all-water services from Asia to the East Coast, a greater percentage of the shipments will all-water services move through the Suez Canal than via the Panama Canal, according to Alphaliner. from Asia to the East Coast, a greater percentage of the If the ILWU negotiations conclude this summer without a major work stoppage, shipments will move carriers hope to be able to increase rates again in late summer and early fall as through the Suez holiday season shipments arrive in the U.S. from Asia. Canal than via the Panama Canal. Many economists and forecasting firms say total imports this year will be 4.5 to 5.5 percent higher than last year, with much of that growth occurring in the second half of the year.

Shippers Prepare for ‘What If’

By then — autumn, at least — there should be some resolution to negotiations between the ILWU and West Coast waterfront employers on a new contract. Talks began in mid-May, but BCOs aren’t waiting to get caught up in any potential BCOs aren’t waiting to slowdowns or disruption. Instead, many BCOs are shipping freight earlier than get caught up in any usual or plan to ship through alternative gateways. potential slowdowns or disruption. Instead, Prudent BCOs already have put contingency plans into action, or are finalizing many BCOs are shipping those plans. “It is most important that you plan early,” said Dan Flaherty, vice freight earlier than president and general manager of port logistics at Schneider Logistics. Shippers usual or plan to ship through alternative that rely heavily on West Coast ports to handle their goods need at least 30 days gateways. to rework their supply chains, he said, and, to be safe, 60 days are more realistic.

Revising a supply chain involves more than just ports of call. Production must be started earlier in Asia. Vessel space from Asia will be tight, especially to ports in Canada and on the U.S. East Coast.

Trucking capacity at ports in Canada and on the U.S. East Coast also will be strained, whether it involves moving containers from the port to railheads in Canada, or moving containers from East Coast ports to warehouses in the region. Equipment also must be secured in a tight market.

Port congestion will also be an issue. The ports of New York-New Jersey and Norfolk are recovering from congestion earlier this year, caused in part by the harsh winter on the East Coast and the impact of bigger ships on terminal operations. The East Coast ports now will be expected to handle their normal back- to-school and holiday merchandise that begins to move in the summer months, as well as the cargo that may be diverted from the West Coast.

Vancouver, British Columbia, experienced its own problems last winter, caused East Coast ports now primarily by a series of job actions by angry truckers over pay and marine terminal will be expected to handle their normal congestion issues. An action plan developed by Port Metro Vancouver, the federal back-to-school and and provincial governments, terminal operators and the trucking industry is being holiday merchandise implemented, but full build-out will take several months. that begins to move in the summer months, as Following the unusually contentious East Coast longshore negotiations in well as the cargo that may be diverted from 2012 and 2013, complete with multiple threats of a strike by the International the West Coast. Longshoremen’s Association, shippers are on edge as the ILWU and PMA look to hammer out a deal. Several shipper organizations have told their members to prepare for work stoppages as the June 30 contract expiration date approaches and in the weeks after if, as expected, no agreement is reached by that date. These groups, however, have no inside information that work stoppages will occur. In fact, PMA President Jim McKenna told the JOC’s TPM Conference in March

that he believes a tentative agreement will be reached in July, and there will be no work stoppages. But even he doesn’t know for sure.

Until July 1, the “no-strike” provision in the current contract prevents the ILWU Until July 1, from engaging in an organized, coastwide strike. Work slowdowns are more the “no-strike” provision in the difficult to gauge, and they may occur as the deadline approaches, depending in current contract part on how locals at the ports respond to the direction of negotiations being run prevents the ILWU by the headquarters in San Francisco. from engaging in an organized, Come July 1, both sides could agree to extend the contract, thereby keeping the no- coastwide strike. strike clause provision in effect, or they may choose to continue bargaining without a contract in place. That measure would increase the chances of a work stoppage or employer lockout. The latter precipitated the 10-day work stoppage in 2002.

Given these uncertainties, it’s crucial for cargo interests to have a “Plan B” in place to hedge their bets. Every type of shipper has its own unique supply chain characteristics, however, so there is no single Plan B that works for everyone.

Footwear, for example, is a fashion item that changes with the season. Orders can’t be placed too far in advance. Given the need for rapid transport of footwear once it leaves the factory in Asia, most imports move through the West Coast, which offers the quickest transit to U.S. consumer markets, said Matt Priest, president of the Footwear Distributors and Retailers of America.

JOC SURVEY RESULTS: SHIPPERS’ PLANS FOR CARGO DIVERSION

TEU Volume and Year-Over-Year Percent Change. Given the In Thousands of TEUs need for rapid 130,000 25% transport of footwear, most imports move 120,000 15% through the West Coast. 110,000 5%

100,000 -5%

90,000 -15%

80,000 -25% 1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 1Q14

*HS Code 64 Source: PIERS, the Data Division of JOC Group Inc.

The vast majority of the world’s footwear is produced in Asia, especially China, the source of 70 percent of U.S. containerized footwear imports in 2013, according to PIERS data. Import distribution centers are located mostly on the West Coast. According to Li & Fung Logistics, shipping a container from Shanghai through Los Angeles-Long Beach to New York takes 22 days. Routing the cargo through the Panama Canal takes 26 days to New York, and through the Suez Canal it takes 30 days.

The gap between West Coast and East Coast transit times is even greater when the destinations are in the nation’s interior. Shipping price-sensitive footwear via rail or truck from East Coast ports to interior markets also negates the cost advantage of all-water transit.

However, importers of non-fashion goods, such as general consumer merchandise that moves on a recurring basis, have alternative options for routing, if they plan their supply chain strategies far enough in advance, Flaherty said.

Shipping price-sensitive footwear via rail or truck from East Coast ports to interior markets also negates the cost advantage of all-water transit.

Merchandise that normally would move through West Coast ports for July receipt can usually be shipped for June receipt, as long as the additional inventory- carrying costs aren’t too high. Carriers, in fact, report that vessel load factors to the West Coast this spring have been higher than usual, suggesting that low-value merchandise already is moving early.

Carriers also report that advance bookings for June are brisk, so BCOs that have not reserved space on June sailings for cargo that would normally have a

July receipt may be out of luck. They should, though, be moving immediately to book their August-receipt cargo that they intend to re-route through Canada or the East Coast.

Shippers intending to ship through Canada’s Pacific Coast have a choice of Vancouver and, 500 miles to the north, Prince Rupert. Canadian National Railway operates an intermodal network from Prince Rupert to Chicago and Memphis and down to New Orleans.

Vancouver, meanwhile, is served both by CN and Canadian Pacific. In both cases, however, the best fit for U.S. importers is if they are located along the CN line through the U.S. midsection or the CN and CP routes in the Chicago-Detroit corridor. When import distribution centers are located at a distance from the corridors, additional transit time and cost are incurred. Knowing which Knowing which alternative gateways present the right choices given the unique alternative gateways characteristics of a shipper’s supply chain is crucial. But this knowledge is only present the right actionable if shippers plan their routing changes ahead of time and communicate choices given the with all of the transportation and warehouse providers in the new supply chain, unique characteristics of a shipper’s supply said John Edwards, director of port logistics at Schneider National. chain is crucial. If an importer plans to re-route shipments through an East Coast port to an inland warehouse and that necessitates a truck move from the port, communication with the trucking company must be made weeks in advance to ensure the motor carrier has sufficient capacity, Edwards said. This will be especially important in July and August, when cargo that regularly moves through East Coast ports increases for the summer-fall peak season, he said.

The importer should not limit the planning process to the port-to-DC move. Shippers must secure sufficient equipment and truck capacity for the subsequent move from the warehouse to the destination. Communication also is necessary Shippers must secure sufficient equipment with the warehouse operator to secure space at the facility, Edwards said. and truck capacity for the subsequent move Shippers importing a variety of general merchandise should break their freight down from the warehouse into categories based on transit-time requirements, sensitivity to inventory-carrying to the destination. costs, seasonal versus redundant shipments and other factors that affect shipping, storage and handling requirements, Edwards added. The same shipper, therefore, could have a variety of logistics strategies for its various lines of business.

JOC Survey Results

Just how prepared are shippers to divert their goods away from the West Coast? 40 percent (of shippers Quite well, according to a JOC survey conducted in mid-May. Fully 66 percent surveyed) will of 221 shippers who responded to the survey, conducted May 12-14, will divert divert more than at least some of their cargo through non-West Coast ports. Of those who are 25 percent of their volume. diverting, 73 percent will ship through East or Gulf Coast ports, 25 percent will ship through Canadian ports and 2 percent through Mexico.

Of those shippers who plan to use other ports, 29 percent said they will divert less than 10 percent of their total cargo volume, 31 percent will divert 10 to 25 percent and 40 percent will divert more than 25 percent of their volume.

JOC SURVEY RESULTS: SHIPPERS’ PLANS FOR CARGO DIVERSION

Do you plan to divert freight If so, where will you divert to? away from the U.S. West Coast due to the ILWU negotiations?

U.S. East Coast NO 34% or Gulf Coasts 73% YES 66% Canada 25% Mexico 2%

If so, approximately what percentage If you do not plan to divert of your freight will be diverted? your freight, why not?

LACK OF ALTERNATIVES 42% Less than 10% 29% TOO COSTLY 25% 10-25% 31% More than 25% 40% TOO LATE TO DIVERT 8% OTHER 26%

In your opinion, are shippers’ needs adequately being addressed NO 81% in these negotiations? YES 19%

Source: JOC Survey

For many shippers, the locations of their DCs in the U.S., or related logistics Some 42 percent said they have no factors, make it difficult to divert. Some 42 percent said they have no viable viable alternatives alternatives to West Coast ports, while 25 percent said it’s too costly and 8 to West Coast ports, percent said it’s too late now to divert. while 25 percent said it’s too costly If comments filed anonymously by respondents are an indication as to how and 8 percent said it’s too late now to shippers are planning their supply chains to avoid possible disruption, it appears divert. ports will be busier than usual in June because many shippers are moving goods earlier.

A number of responses included comments such as “pulling orders forward early into June,” “asking customers to carry more inventory” or “ordered heavy to have goods arrive early.”

PORT THROUGHPUT: LOS ANGELES AND LONG BEACH Year-Over-Year Percent Changes in TEU Volume

20%

15%

10%

-5%

-10% A M J J A S O N D JAN F M A 2014

Source: Individual ports. Data includes imports, exports and empties.

GROWTH IN IMPORT CONTAINER VOLUMES AT SOME U.S. PORTS, APRIL 2014 Year-Over-Year Percent Changes in TEUs

Houston

Charleston

Oakland

Tacoma

Norfolk 10% 15% 20% 25%

Source: PIERS, the data division of JOC Group Inc.

Respondents who are diverting cargo indicated they learned a difficult lesson from the 10-day employer lockout during the 2002 negotiations and have made plans There is evidence that early this time to divert cargo. Some importers, however, said their supply chain diversions at least to the U.S. East Coast already are logistics dictate against diversion. under way. Carriers report all-water services to the There is evidence that diversions at least to the U.S. East Coast already are under way. U.S. East Coast are sailing at Carriers report all-water services to the U.S. East Coast are sailing at close to capacity. close to capacity.

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