Will new alliances pave the way for 3PLs to leverage Foreign Trade Zones?

In a move that may augur a new global strategy for third party logistics (3PLs) parties, CEVA Global Logistics, LLC (CEVA) and IMS Worldwide, Inc. (IMSW) recently announced that they have entered into a Strategic Alliance to offer the benefits of Foreign Trade Zone (FTZ) services to shippers in the United States.

The partnership's focus is the development of “Zone Managed Services” offering that is rooted in compliance, efficiency and experience.

Based on a detailed analysis of the shipper’s supply chains, CEVA and IMSW says they can offer to integrate certain activities into FTZ environments and therefore achieve improved efficiency and substantial savings in terms of duties or import fee reductions as well as cash flow improvements through reductions in working capital.

The combined collaborative alliance with CEVA and IMSW, a leader in the FTZ consulting and operations in the U.S. allows CEVA to enhance, grow and expand their current FTZ offerings to all of their Ocean and Air gateways in North America as well as utilize their Contract Logistics expertise and footprint to offer further benefits to their customers within the FTZ..

Evan Armstrong, president of the consultancy, Armstrong & Associates, told LM that this alliance adds additional FTZ coverage to CEVA’s network.

“It looks like a good deal for both parties and expands CEVA’s cross-selling capabilities,” he added.

Jerome Lorrain, CEVA's Chief Operating Officer for Global Freight Management, said this represents another way to “squeeze cost” out of the logistics process.

Trey Boring, Senior Vice President of IMSW, and past Chairman of the NAFTZ Association, which represents the FTZ industry said that the relationship is unique  in the global logistics arena.

“CEVA has great reach into Asia, Europe, North America and Latin America,” he added. “Together we feel this combination is second to none in the industry.”

Erik Autor, president of the National Association of Foreign-Trade Zones, said it’s too early to tell if his development signals a profound trend, however.

“I think we will need to wait and see there are other such 3PL collaborations,” he said.