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SCREENING ALL AIR FREIGHT
come August, will only add time and more expenses to the process. It's called 'REALITY', and you simply have to get used to it. Meeting any and all Security Protocols is mandatory.

Prices may subside with time and a recovering world. Security will only get more intrusive, till perhaps Ocean transits are the only option for 'unknown shippers'.

GLOBAL RECOVERY
It will be longer and slower than most would have wished. Some countries missed the 1st global slowdown for a variety of reasons. However even those country's are now being influenced by the 2nd global slowing we're experiencing this summer.

For some it will NEVER be the same. So many global economies were built around the global Real Estate booms that simply were NOT REAL! So it's not reasonable to think we'll get back to where we NEVER were in the 1st place.

Many still feel the EU is vulnerable to potential defaults, with so many member countries failing to meet basic financial models they're required to maintain. Yes the basic overall fundamentals say things will get better. We think next Spring will bring many markets back to vitality. Until then the up and down trends will continue to unfold with each bit of positive or negative news. 		Freight

Roiling Air Freight markets react to fuel spikes, low volumes, and stumbling global markets. Every airline had to adjust to the new market realities. Some went "Out of Business", some were swallowed by larger Airlines, while the rest cut back service, aircraft sizes, as well as eliminating some destinations entirely. The realities of all this to you are simple. You really have to scramble to find ways to process "unknown shipper" freight. Many cut West Coast Air Freighter services to Asia. That's right I have to tender to Chicago, or Houston to get on an Asian bound freighter. Unknown Shippers can only go on Cargo aircraft (freighters). Shipping around the globe has become a challenge to many regions. So packaging up your freight to easily fit on narrow body aircraft, is only the beginning of shipping around the world. Vetting each and every part of the movement is SOP. More restrictive? Yes, but not constrictive. It costs a bit more. Takes more planning and coordination (multiple airlines), yet we still service the globe. We can always get it there regardless.

OCEAN FREIGHT
Ocean rates went up this year. Not nearly as much, as some feared. Competition remains the defining factor on rates, as steamship companies try and position themselves for long term growth and customer retention. Most transit times remained the same. However some routes were combined in Asia & the Mid-East, (especially those with 'transshipment' detail involving feeder vessels, etc.) adding both time and additional costs to these services.

FUEL
Fuel remains an uncertain factor. Pricing continues to fluctuate with so many European and Asian economies Yo-Yoing, to the weak global economic news . Once the world markets improve, demand will again drive pricing back up. Fuel will never go DOWN, more than a few bucks per barrel. Remember when it got to $140.00USD? At some point in our future, those market conditions will return. 		Summer/Fall 2010

NOVO COMPANIES
All locations have improved growth this Spring. However that 2nd bump with traditional North American Holiday Season shipping was both early and weaker than many forecasts had predicted. There is a growing reality that expectations must be tempered for the USA, some European and Asian countries as well.

Specialty, or Niche Markets have continued to drive Novo Companies even in these hard times. However we're about 20% below our forecasted goals for this Spring. There are definitely some bright spots in our future, which are very encouraging.

STRATEGY
Memories of those past outrageous Fuel Pricing Increases, should be foremost in your mind when planning for the Future. It's only a matter of time. Seems unfair when realizing that the World's biggest Oil Consumer is ourselves. That the minute we as a country(USA) start to get BETTER, oil prices will shoot back up.

So you need to revisit some of your past strategies to lessen Shipping Expenses. Sourcing suppliers and even markets closer to your business, etc. Long term thinking is a must. Being able to stay ahead of situations before they happen is the key. You've already seen the future, and it's coming back. Be prepared.