Service relay ends with bonded warehouse deal for GEMS

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    9 March 2012



When GAC Energy and Marine Services LLC (GEMS) signed a deal with BG LNG Services, LLC (BG) to assist with its 45,000-sqm long-term customs bonded warehouse in Lake Charles, it was the culmination of a relay race with the baton being passed between GAC offices in the USA, Greece, the Netherlands, Japan, South Korea and back.


BG’s 56 Ton (50802 kgms) propeller arriving at Port of Houston for transport to Lake Charles, LA warehouse.

First pass
The business baton started off with GAC USA President Bob Bandos, who learned that BG was asking for bids to manage its shipments of spare parts coming into the USA from Japan, Rotterdam and South Korea. The multi-origin shipments would arrive for consolidation in Houston, before being transported for long-term storage at Lake Charles.


Bob thought that GAC's integrated services could be the solution. He conducted an analysis and identified a cost-saving tool, based on the customs bonded warehousing experience and expertise of GAC Energy and Marine Services LLC (GEMS) in Houston. Customs bonded warehousing is a major cost-saving tool as imported goods may be held there without tax being payable until they are withdrawn for use, giving importers greater control over their funds. And so the baton was passed to GEMS.

Second pass
Bob handed over to Sarah Salvo, GEMS' Vice President, Imports. She contacted BG and started preparing to bond their Lake Charles warehouse.

Sarah calculated that GEMS could help BG secure cost savings over a five-year storage period. The GEMS proposal also lifted the administrative burden of the warehouse management from BG. A Customs Bonding Manual was created for all warehouse staff and an orientation programme prepared to train them and minimize the margin for error.  GEMS' tailor-made logistics solutions package includes management of all warehouse in-and-out transport activity, inventory control, customs compliance issues, staffing requirements, picking and packing, co-packing, labeling, repacking and component assembly when necessary and equipping the warehouse GAC's proprietary IT technology, GACWare.

Following this, BG awarded GAC the logistics contract to manage, consolidate and transport its shipments to Lake Charles.

Final stretch
Once the business was secured, GAC USA worked with Harris Theodorakis at GAC Marine Logistics in Greece, who helped secure the quote. Harris then involved colleagues in Rotterdam, Japan and South Korea to manage the shipments for consolidation in Houston. And back in Houston, GEMS was ready to consolidate the shipments and oversee their transport to final destination - BG's Lake Charles warehouse.