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