Page 87 - IAADFS Summit of the Americas 2024 Special Edition

INSIDER

How global events from shipping lanes to water levels impact the
worldwide supply chain

Miami-based logistics infrastructure company WTDC is celebrating its 47th anniversary this year. Founded by the
Gazitua family in 1977 as Miami’s first General Order Warehouse, the family was already running a successful freight
forwarding business called Florida International Forwarders (FIF) at the time of WTDC’s founding. Over the years,
WTDC added additional services such as bonded warehousing, customs brokerage, and transportation licenses and is
a recognized market leader worldwide. Sean Gazitua, son of the founder and the current president & CEO of WTDC,
shares his insights and concerns about the current state of supply chain issues and how his company is dealing with them.

As president and CEO of a worldwide the company’s eco-friendly goals while
logistics company and foreign trade zone, it meeting the environmental objectives of
is imperative that I stay informed of global our global partners. The company issues
events that could affect customers while carbon credit reports so these partners can
championing efficient and sustainable meet their own environmental benchmarks,
practices. Three areas of notable increasingly a shareholder or government
importance that have shaped the past year, mandate.
and continue to require vigilance, are the The company’s environmental
crisis in the Red Sea, the water levels in footprint is reducing through recent
the Panama Canal, and the commitment to infrastructure upgrades: a fleet of electric
implementing sustainability measures. forklifts, recycling electronics waste,
Attacks in the Red Sea and Sea of installation of LED lighting in the
Aden on major shipping lines CMA CGM, warehouse and offices, and installation of
Maersk, and MSC shook the international high-efficiency air conditioning units. We
shipping industry last fall. Emboldened Sean Gazitua, President and CEO, WTDC centralized control of the air conditioners
by the October 2023 Hamas attacks on to optimize cooling times and align them
Israel, Houthi militants in Yemen launched with office use. Currently, we are sourcing
what they call a war of solidarity with the The drought was further compounded by a new roof that will incorporate modern
Palestinians. Missile attacks and hijackings the El Niño weather phenomenon. cooling materials.
have unfortunately occurred consistently As Panama Canal crossings decreased, Our Zero Waste to Landfill initiative
until the time of this writing in late March queues increased. 135 ships were backed emphasizes recycling and proper disposal
2024. Vessels linked to U.S., Israel, and up waiting to cross in August 2023. of waste. WTDC has been working with
UK interests were initially targeted by the Coveted crossing-slots were auctioned by our supplier partners to safely reduce
rebels, but recent missile attacks have been the ACP to the highest bidder, including packaging waste on incoming shipments.
less discretionary. a $2.4 million bid to jump the line. With Damaged pallets are picked up for repair
The Red Sea crisis is a significant some rainfall over the last few months, and cardboard is recycled. We even
disruption to maritime shipping as the Suez vessel crossings have improved to 26 per installed compost bins to break down
Canal accounts for 15% of the world’s day, still well shy of the typical 36 daily food and paper waste. The project now
shipping traffic. With the crisis showing crossings. Delays in the Panama Canal, impacts how we approach the services
no immediate signs of ceasing, all major which handles 3-5% of all maritime of our vendors. For example, single use
carriers are avoiding the area to instead traffic, can cause major global maritime plastic lunch containers constituted a
choose a 3000-3500 nautical mile (6000 disruption. notable portion of daily trash. Through our
km) detour around South Africa’s Cape of The Panama Canal drought is a stark recommendations, our top lunch vendor
Good Hope. After some initial changes reminder of the far-reaching impacts of switched from using plastic to compostable
to spot rates, the shipping industry has climate change on critical infrastructure. containers to house their daily lunch
mostly stabilized considering this crisis. As the canal grapples with water scarcity, offerings.
Alternative shipping lanes, like the detour corporations worldwide are increasingly The real goal of any sustainable
around Africa or the Panama Canal have recognizing their role in environmental measure should be to improve the quality
become the new normal, though the challenges. of the customer experience, to elevate the
Panama Canal has not been without its own Through conversation, education, and status of employees, and to impact the
challenges over the last year. even trial and error, WTDC is building community and environment. Recently
A historic 2023 drought caused the a sustainability profile that achieves our family company celebrated 47 years in
Panama Canal Authority (ACP) to reduce business. We continue to be an asset to our
daily vessel crossings from 36 to 24. Lake customers because we are informed and
Gatun, a freshwater reservoir that feeds the have a long track record of adaptability to
Panama Canal locks and is a drinking water the ever-changing environmental and geo-
source for half of Panama, was at its lowest political landscape. Have a great Summit of
recorded depth as the dry season began. the Americas!

87 April 2024 Summit of the Americas