About Nick Akca

Nick got his BA in Maritime Business and Administration in 2005, and has been working in the logistics industry since. He has been with MTS since October 2010, and works out of our Los Angeles office.

United States’ Free Trade Agreements

March 11, 2013 By Nick Akca 2 Comments

Doubling the United States’ exports over the next 5 years may sound like a lofty goal after a catastrophic 2009. But the gradual increase of US exports in goods of 46% from 2009 to 2012 makes this goal quite feasible in my opinion. US exports in goods reached 1.56 trillion in 2012 and 0.63 trillion in services totaling 2.19 trillion. Free trade agreements are undoubtedly one of the best tools for US exporters to expand their sales.

The purpose of a free trade agreement is to allow faster and more business between 2 or more countries, it covers many aspects of government activities and the main goal of FTAs for the United States is to reduce barriers to US exports by reducing or removing the tariffs charged on all qualified products. Currently the United states has 14 free trade agreement in effect with 20 countries which I believe might be useful for many exporting companies. Australia Free Trade Agreement entered into force on January 2005. Duties on more than 97% of US non-agricultural tariff lines became duty free from day one of the agreement. The main US exports to Australia in 2010 were in the sectors of machinery, vehicles; not railway, optic/medical instruments, and electrical machinery. [Read more...]

Filed Under: Global Trade, Shipping Trends, Supply Chain Planning

Force Majeure

November 12, 2012 By Nick Akca Leave a Comment

This is a term that I kept hearing in maritime classes during my college years, and last week I saw many force majeure declarations from several carriers due to the catastrophic Sandy hurricane on the east coast. So what is a Force Majeure?

The french phrase translates to “superior force”, and is commonly available in many contract types. In maritime, it relieves the parties to the contract of their obligations and liabilities when circumstances beyond their control can prevent them from performing under the contract. Examples of circumstances that might require a force majeure are war, strike, riot, piracy and Act of God. A force majeure clause does not, however, excuse a party from its negligence or failure to perform under conditions that are ordinary or expected.

Three elements of Force Majeure

Externality; circumstances have to be beyond the control of the parties
Unpredictability; event must not be anticipated, if foreseeable party must be prepared for it
Irresistibility; consequences couldn’t be avoided [Read more...]

Filed Under: Global Trade, Insurance, Regulations, Shipping Trends, Supply Chain Planning

Panama Canal Expansion Soon to be Completed

September 17, 2012 By Nick Akca Leave a Comment

Picture taken in 1914 at the opening ceremony of the Panama Canal

The Panama Canal opened to commercial shipping in 1914, officially when the S.S. Ancon sailed through on Aug. 15th and since then over 850,000 vessel have passed through the canal with 12,000 to 15,000 transits every year in the last decade. 4% of world trade and 16% of total U.S. bourne trade is transported through the canal. 50 miles long, seen as one of the wonders of the world by some, it has had an enormous impact on global trade and shipping. Starting in the 16th century, interest in finding such a shortcut from the Atlantic to the Pacific ocean resulted in the canal construction in 1881, which made the Cape Horn route unnecessary and ultimately made it possible for ships to travel between Atlantic and Pacific in half the time previously required. Canal construction was first started by a French company and later before its finished all project rights sold to United States in 1914. It has been one of the most expensive projects in history with price tag of $375 million – more than $8 billion in today’s dollars. [Read more...]

Filed Under: General Business, Global Trade, Shipping Trends, Supply Chain Planning

Bills of Lading

July 30, 2012 By Nick Akca 10 Comments

You see it almost everyday, you endorse it, stamp it, keep it in your files for years, you pay thousands of dollars to a bank sometimes to get a hold of this piece of paper, sometimes you take it to your lawyer. It’s arguably the most important and widely used document in the shipping industry. It can also be one of the most overlooked items when making shipments.

The functions of the bill of lading were gradually created by the practical needs and technical developments of a certain time. I think it’s necessary to understand how the bill of lading evolved into the instrument that we know today. Bills of “Loading” as they were once called have been around for centuries, the early transportation contracts began to appear in 13th century. Back then it only functioned as a receipt for goods received by master or ship owners. Through the centuries it has developed into a receipt containing the contract of carriage between shipper and carrier, and it acquired the third characteristic later on, negotiable document of title. [Read more...]

Filed Under: Global Trade, Regulations, Shipping Trends, Supply Chain Planning

Breathing Cleaner Air

May 29, 2012 By Nick Akca Leave a Comment

Although Los Angeles is known for its beautiful beaches, movies, landscapes and marvelous weather the city also has become infamous for the air pollution and smog that floats on top of the high rises during sunset. Los Angeles has become one of the most polluted cities in the United States, ranking 3rd in the most recent report conducted by the American Lung Association.

I don’t think anyone can ignore the contribution of port traffic to polluted air, especially if you are driving on Harbor freeway everyday for your daily commute which I have done for quite a while. About 4 years ago Port of Los Angeles and Long Beach put their Clean Truck program into effect. By all accounts this program has been one of the world’s most comprehensive “cleaner air” plan.

The multi-billion dollar plan was to replace around 18,000 drayage trucks running in and out of Long Beach and Los Angeles ports with an effective date of October 2008. As of today, with a few exceptions, all 11,000 trucks operating in the POLB are 2007 EPA-certified or newer. [Read more...]

Filed Under: Regulations, Shipping Trends