Foundry Logistics Q&A

We sat down with Foundry Logistics Manager Jimmy Lewis to better understand what goes into a logistics business, what factors play into the broader market, and learn how Foundry Logistics is serving the mining ecosystem.

Foundry
Foundry
Published in
7 min readApr 27

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Authored by Foundry Logistics Manager Jimmy Lewis.

In 2022, we launched our Foundry Logistics service offering. Since then, we’ve worked with customers across the world, shipping hundreds of thousands of machines and industry-related materials with transparency and efficiency at the cornerstone of each order. Let’s dive into the logistics market and how our service offering works.

1. Why did Foundry start a logistics service?

We saw a need for focused transportation solutions that take compliance requirements and the complexity of our products into consideration. We also experienced our own issues with customs and inefficiencies with shipping machines around the world. We believed we could take this challenge on — doing it more effectively than others in the space.

Our goal at Foundry is to help miners through every step of the mining journey, and having a seamless and reliable logistics solution is a huge piece of the miner success story.

2. What challenges with purchasing mining equipment does Foundry Logistics solve?

Today, most manufacturers of ASIC miners and mining equipment are in various locations around the world, and pickup locations are in multiple countries. Additionally, navigating customs is often a confusing and complicated process that can have significant monetary impacts when not handled correctly. Equipment can get stuck in customs for months at a time, which can result in large timeline delays as well as fees for customs storage as orders wait to get through the process.

We solve these problems by consolidating pickups to maximize space in aircrafts and ocean containers. When consolidating origin in this way, we can submit one master customs sheet and ship all together instead of filing multiple customs sheets and creating more complexity with the order.

This simplifies the customs process and lessens the likelihood of orders getting stuck in customs — saving the end user time and money.

3. Do you have an international team?

Yes, we have on-the-ground partners at all product origin locations across the world that handle the site pickups and work directly with the USA team. This streamlines communication and eases many of the complications other logistics and manufacturing companies face today.

4. What are you seeing in the transportation space given the fluctuating inflation and market changes?

The logistics industry is constantly changing, and no two days are the same. However, we are in constant communication with our worldwide partners to provide customers with valuable insights into the broader landscape. As the world continues to recover in a post-pandemic time, the freight market is no different.

In 2021 and 2022, we continued to see record-high prices on air freight and volumes across all industries. Additionally, with record inflation, other industries are softening their imports and exports, yielding much lower demand in the air space and lower pricing as a result. At Foundry, given our import volumes, we are taking advantage of softening demand and lower pricing.

5. Do you believe that the air market will remain soft?

The market changes daily. While it’s hard to predict pricing 3 or 6 months from now, we believe, based on our industry intelligence, that air pricing will remain lower than we’ve seen in previous years. We continue to keep a close eye on this daily.

6. What factors contribute to the overall air market pricing?

The overall air market is reflective of the global economy’s supply and demand. Typically, at this time of year, many US retailers would be purchasing seasonal items, driving logistics pricing up. However, since inflation is high, people are purchasing less, so shipping containers and planes are not as full or busy as they once were — contributing to lower pricing.

7. Does Bitcoin price play a role in the logistics market?

Higher Bitcoin prices don’t impact the prices we see in logistics, but they do impact transit timing. When the price of Bitcoin is high, people want their machines sooner so they can plug in and make money sooner. When Bitcoin prices are low, there’s less urgency, and miners aren’t as pressured to get their machines as quickly.

8. How do you manage the ever-changing transportation markets?

Much like Bitcoin prices, freight pricing can fluctuate just as often. However, through our daily interactions with our various partners worldwide, we’re able to mitigate those fluctuations and secure not only the best pricing but the best transportation options as we are in constant communication with them as the market changes.

9. When should you consider engaging logistics in the buying process?

It’s best to start the process right when the purchase order (PO) is placed with the manufacturer. Once notified, we immediately begin working directly with the manufacturer to secure local pickups and prepping for customs. When you factor in logistics early in the process, you’re more likely to save money and encounter fewer customs challenges than you would later in the process.

10. How are miners benefiting from using your white-glove service instead of traditional shipping and logistics companies?

One of the main differences is that, as a company working within the digital asset space, we have a deep understanding of the products and security around them, from insurance all the way to compliance. Additionally, with Foundry Logistics, you have a dedicated team member available to answer your questions and provide you with a white-glove solution every time.

11. How does Foundry Logistics work with FoundryX?

FoundryX and Foundry Logistics work closely together. As soon as an order is placed with FoundryX, the Logistics team steps in to make sure the machines are transported safely and efficiently from the seller to the buyer.

If you want to read more about how both services work together, check out our recent Twitter post that talks about our two teams.

12. Do you have to be a FoundryX customer to utilize Foundry Logistics?

No, our logistics services are a la carte. We often gain long-term logistics customers after a FoundryX experience, but we are not exclusive to FoundryX customers.

13. If I use Foundry Logistics for my machines, how will tracking and visibility work?

We offer daily tracking updates via email, text, Telegram, or phone. We tailor our partnership to you and your needs.

14. Can you explain the process of working with your team?

15. What types of materials are you shipping?

We ship everything from small, parcel-size miners to thousands of machines, containers, and transformers. Essentially, if it’s related to our industry, we can ship it.

16. Does your team handle orders directly?

Yes! We often handle everything from boxing and packaging to loading trucks, shipping, and more.

17. What size orders do you handle?

To date, we’ve moved hundreds of thousands of items for customers and can move anywhere from one or two boxes, all the way up to a full plane — shipping international, domestic, or a mix.

18. What happens if something goes off plan or is delayed?

Given the many moving parts, sometimes delays can happen. We are extremely transparent with our customers whenever we encounter a delay. We provide updates and explanations on what has caused the delay and keep customers up to speed as new information is gathered.

However, we do everything we can to minimize those delays to your business through our trusted processes and make sure you have a direct point of contact on our team to work with and answer any questions.

19. What are typical logistical issues people run into that they don’t plan for?

There are always unforeseen issues that those unfamiliar with the industry encounter. We’ve talked quite a bit about the many customs issues that can happen, including lengthy and costly delays. However, we also see problems with booking the appropriate route and full-service transportation.

Some people may make the mistake of booking something internationally and later discover it was only booked to the airport, so upon landing, they need to figure out how to get it from there. Additionally, packaging and insurance requirements are overlooked areas that we make sure to include in our processes with customers.

20. How can potential Logistics customers get started?

We are happy to provide a quote for your upcoming logistics need. To get a quote, head to our website and we will work with you from there.

Disclaimer

The contents of this post have been provided by Foundry Digital LLC (“Foundry” or “we”) for informational purposes only, and should not be construed as giving legal, financial or any other kind of advice. Although we strive to provide quality information, we do not guarantee or warrant any particular results from the use of this information or any opinions provided. Foundry accepts no liability whatsoever for any damages, costs or any other consequences resulting from any actions taken on the basis of the information or opinions provided. Furthermore, Foundry has no control over information provided in any third-party sites linked herein, and Foundry accepts no liability whatsoever over any consequences resulting from any actions taken on the basis of that information. Foundry reserves the right to make changes to this information at any time without prior notice and makes no commitment to update the information contained in this post.

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Foundry
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