Rickenbacker International Airport’s Foreign-Trade Zone (FTZ) 138 has moved up the ranks, now placing 7th out of 195 active US FTZs, thanks in part to the US-China trade war.
According to a recent US federal government report, USD 10.4 billion worth of goods moved through warehousing and distribution operations within FTZ 138 in 2018. As a result, Rickenbacker (LCK)-based FTZ 138 moved up to 7th place, reflecting an increase of 12.4 per cent over 2017 when it was ranked 9th.
With the growth of trade value, so too is the global competitiveness of businesses operating within the 25-county zone, the Columbus Regional Airport Authority says.
“For seven consecutive years, Foreign-Trade Zone 138 has ranked among the top 10 US zones,” says Shannetta Griffin, chief commercial officer of the Columbus Regional Airport Authority, which administers the zone.
“In that period the value of goods moving through FTZ 138 increased an impressive 277 per cent, indicating that an increasing number of Central Ohio businesses are taking advantage of the benefits FTZ 138 provides. With current US trade tariffs, it’s an ideal time to do business within the zone.”
FTZ 138 enables companies to increase global competitiveness and profits by lowering costs associated with importing merchandise, including textiles, footwear, pharmaceuticals and electronics.
As of today, FTZ 138 has 16 operators at 18 activated sites. Businesses using the FTZ benefit from deferred, reduced or eliminated US Customs import duties; reduced processing fees; quicker movement of goods from the port of entry; supply chain predictability; strong inventory control; and best practice relative to cargo security, according to the Airport Authority.
Two recent forwarding companies to tap the FTZ’s advantages include US-based Trinity Logistics which has tied-up with a Middle East carrier to bring in apparel from Colombo, Sri Lanka and Hanoi, Vietnam and APEX Logistics, a Shanghai-based logistics company which has tie-up with Asiana Cargo.
All told, some 20 scheduled weekly international flights are operated into Rickenbacker by carriers including: Asiana, AirBridgeCargo, Cargolux, Cathay Pacific Cargo, China Airlines Cargo, Emirates SkyCargo and Etihad Cargo.
“The Columbus Regional Airport Authority is happy to provide this service for companies shipping goods in and out of the country,” adds Griffin. “Together we’re fueling regional and state of Ohio economies with 9,980 jobs, USD 480 million in payroll and overall impact of USD 5.2 billion.”
FTZ 138 received its number 7 ranking by the US Foreign-Trade Zone Board’s 2018 Annual Report to Congress released late November. The Board is part of the International Trade Administration within the US Department of Commerce.
Administered by the Columbus Regional Airport Authority, Foreign-Trade Zone 138, is part of the greater Rickenbacker international logistics hub. Known as the North American International Freight Center, this multimodal hub features a mix of air, sea, rail and ground transportation assets.
It supports the supply-chain logistics and distribution operations of a large community of premier international shippers, freight forwarders, consolidators, Customs brokers and third-party logistics providers.
Anchored by cargo-dedicated Rickenbacker International Airport, the logistics hub is recognised for its strategic geographic location featuring advanced transportation infrastructure and is situated within a 10-hour truck drive to 47 per cent of the US population, one-third of the Canadian population and 44 per cent of the US manufacturing capacity.