Covid-19 has posed enormous challenges for the shipping industry wherein ‘unprecedented’ will be overused for the disruptions caused by supply chains globally. Every category, whether equipment, manufacturers, suppliers, or distributors, has different aspects of logistics impacted differently. The supply chain disruptions were caused by shocks related to the pandemic that led to the turmoil that affected the company’s growth and revenue. Due to the disrupted supply chain activities worldwide, many distributors and suppliers have found it difficult to replenish inventory, along with challenges in sending or receiving goods from international borders. The impact of covid-19 on supply chains has arisen due to the government's lockdown measures and other critical health-related strategies to prevent the spread of coronavirus. Political instability and trade war were prominent factors restricting the seamless flow of goods. The global pandemic had impacted the shipping industry in which an increase in demand, labor shortages, and logistics deadlocks had a massive impact on the supply chains. Global Trade and Shipping Challenges As a result of covid-19, international trade slowed down due to travel restrictions. The International Trade Center (ITC) enacted measures to regulate the trade of vital medical supplies. With the emergence of the third and fourth waves, changes had critical implications for global supply chain trade. Air Freight Freight is the utmost risk when goods are supposed to be sent across the globe. High air travel restrictions caused disruptions to air freight, and due to this, the delayed supply chain took place. There was a slower recovery for the airline industry in the previous situation, depending on the magnitude of the pandemic situation. Sea Freight Concerning the impact of Covid-19 on supply chains, shipping lanes were increasingly clogged due to more customer demands. Lower availability of labor at ports to unload or load shipping containers at cargo leads to skyrocketing prices of freight. Further, a critical shortage of cargo containers due to the pandemic had downsized shipping capacity, impacting freight operations. Due to trade agreements and regulations, allocating space and timely dispatching of goods remained a core problem for global trade. Covid-19 Creating a Logistic Deadlock Since Covid-19 was the reason for several intra-national lockdowns and border controls, limited transportation to some regions created impediments to global supply chains. Logistics is all about payment terms, quality, and cargo capacity that become key obstacles for operating overseas. Considering the impact of Covid-19 on the supply chain, growing inflation and demand had impacted freight charges, creating a logistic deadlock. The global logistic disruptions would continue to grow since delayed shipping is the major challenge. Labor Shortages Straining Supply Another critical factor for the impact of Covid-19 on the supply chain was the shortage of staff when demand surged. Shortage of labor worsened factory operations as it reduced production capacity. Many logistics companies found it difficult to hire people due to the ongoing risk of Covid. Also, massively increased orders lead to rushing and overlapping work that negatively impacts deliveries. Moreover, third-party logistics were outsourcing networks to cut costs and improve operational efficiency. Beyond Covid: Strategies to Mitigate Effects Disruptions brought up by the pandemic drastically impact the supply chain industry. Adopting sustainable and secured solutions can overcome the damage being caused. Supply Chain Transparency and Resilience: Supply chain resilience is an essential factor when it comes to dealing with an uncertain situation. The impact of Covid-19 on the supply chain is severe but advanced capabilities by driving agility can be helpful for businesses to maintain transparency. Smart Logistics by Reimaging Strategic Architecture: Revolutionizing the supply chain operating model through adopting a digital supply chain is what businesses can do to mitigate the effects of a pandemic. Ensuring smart logistics with cutting-edge technologies will develop a sustainable supply chain ecosystem. The pandemic has caused vulnerability to global economies, in the shipping industry is worst. With high government regulations, industrial and transport activities would continue to suffer. The impact of Covid-19 on the supply chain is severe, but the supply chain industry’s efforts for strategic supply chain management can make a difference.
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Shipping containers have made transportation of goods worldwide very easy and convenient. Many cargo containers are available in the market per the cargo requirement. One such container is a Flat rack container. It makes it very easy to ship your unique, heavy, and oversized cargo.
This blog will help you gain all the necessary insights on flat rack shipping containers. What is a flat rack container? It is a particular container with sides only on the short side, making it easy for the cargo to stick out the side of the container during transportation. It has no roof and walls on the larger lots. Lashing rings are installed on its sides, rails, floor, and corners to secure the cargo. Such containers are manufactured specifically to transport the oversized load and cannot be fitted in the standard-sized container box. As a result, it can easily store and deliver heavy or bulky cargo such as machinery, pipes, buses, boats and many more. Shape and Dimensions Flat rack containers are available in two different shapes. A flat- rack with a foldable wall is a collapsible flat rack. Flat racks with a solid wall that isn't always foldable are non-collapsible flat racks. Like every other standard container, a Flat rack container is also made of steel to make it strong and durable. They are usually built in two different sizes: 20 ft and 40 ft. Uses of a Flat rack shipping container
Conclusion Flat-racks have many benefits like easy shipment, loading-unloading heavy goods and many more. You can buy or lease a flat rack container per your needs and requirements. LOTUS Containers, a prominent shipping container provider, helps you get containers of all types and dimensions, whether flat racks containers or any other. Our offices are in Europe, China, North America, and South America, and our services are available globally. The management of the transportation of goods, supplies, and information between two locations is known as logistics. From A to B while accounting for all available resources. Logistics management plans the acquisition, storage, and delivery of materials and goods to their final location.
Management of logistics is essential to an eCommerce business' success. Customers expect quick and seamless deliveries with online shopping, so it's necessary. What is inbound logistics? Inbound logistics is locating, rushing, and receiving goods delivered to a business organisation, involving interaction between the firm and the supplier. Inbound logistics, to put it simply, is the core activity that deals with procuring and planning the inflow of raw materials, equipment, and finished goods from suppliers to the production unit, warehouse, or retail outlet. Steps involved in inbound logistics
What is outbound logistics? Storage, packaging, and transportation of goods leaving the organisation make outbound logistics involving interaction between the firm and the customer. Outbound logistics can include warehousing, material handling, inspection and transport, and so on. Steps involved in outbound logistics
How is inbound logistics different from outbound logistics? Inbound and outbound logistics are critical components of the overall supply chain strategy. Generally, any company that deals with physical goods requires inbound and outbound logistics, whether managed internally or through an intermediary. The audience they target is where the two differ significantly. Inbound logistics are concerned with connecting suppliers and vendors to a business; outbound logistics are more concerned with the final consumer's experience. All operations involving placing orders with suppliers are referred to as inbound logistics. On the other hand, outbound logistics includes all the activities involved in dealing with or trading the company's products. Inbound Logistics
Outbound Logistics
What is the Importance of Inbound Logistics? Inbound logistics plays a vital role in the economy's supply side, ensuring smooth operations between a company and its suppliers, distributors, and vendors. What is the Importance of Outbound Logistics? Outbound logistics connect the economy by bringing goods to markets and consumers. This establishes a unified network of distributors, wholesalers, and retailers, boosting income and sustaining the financial ecosystem. Inbound and outbound operations are critical to the overall logistics and supply chain system. The harmony of the inbound vs. outbound logistics process is crucial to the supply chain's effectiveness. If product availability in the warehouse is disrupted, a company may face delays in making products available in the market on time. Any issue can impact delivery times and customer satisfaction. Investing in a partnership with a reliable third-party fulfilment provider is essential to building customer loyalty as an eCommerce business. We hope that this article helped us understand inbound and outbound logistics. For more information, visit LOTUS Containers. LOTUS Containers is a reputable supplier of international shipping containers, offering the most incredible flexibility and affordability when distributing steel shipping containers worldwide. Shipping containers are just large size cuboid-shaped boxes that you might have noticed in huge numbers either on the deck of the ships or being hauled by a long whistling train or traveling alone at the back of the truck. Looking at them, some of you might wonder what would be inside the box? The safety and care with which they are being carried bring to us more curiosity to figure out what could be moving inside it.
Well, ever since the invention of shipping containers, they have been used to carry numerous types of products. The answer to- ‘What all can we transport in a shipping container’ could be winded up in a single word- ‘everything’. Why was it necessary to invent something like this? Before the birth of shipping containers, trade between countries was extremely arduous, impractical, unsafe, and restricted due to several reasons. Goods were packed in sacks, drums, buckets, barrels, and had to be loaded and unloaded manually (using hand). Loading of 100,000 individual packets of cargo would take up to 2 to 3 days. Not only this, the cargo after leaving the port wasn’t enough safe. Sacks, buckets, barrels, drums could not withstand the harsh weather. Encountering extreme climatic condition most of the cargoes would get destroyed during the transition. The goods that were left after the attack of pirates and robbers then finally used to reach the port of destination. Remembering all this, history pays a big tribute to McLean Malcolm for his visionary idea that led to the invention of the shipping containers. Ever since then, the container became one of the important components to keep the trade profitable and prosperous between the countries. Initially, the container could only carry certain types of goods. Later the discovery of different types of containers led to the seamless transportation of almost all types of goods. Today, the container has the capability to carry everything you see around you. From the flowerpots, TVs, bed, sofa, fruits, dairy products, meat, blood, oil machines, to automobiles, they leave no area untouched- and that what makes them versatile. To make it simpler, here I am categorizing my answers 1. Dry Cargoes: Dry cargo includes many things- from machines, grains, furniture, to wood but still not all dry cargoes are carried in a similar kind of box. Big size dry cargo is mostly carried in dry van, side door, double door, or open-top while small size goods like grains, sand, coffee beans are carried in bulkers. Bulker is a type of container that has hatches on its top for injection and holes at the bottom for unloading. 2. Perishable Goods: Perishable goods like dairy products, meat, fish, medicines, organ, blood were very challenging to transport until the invention of refrigerated containers (reefers). Reefers are just like a big sized fridge. They are of the size of standard shipping containers, but they have a temperature control device attached to them enabling them to maintain temperature for longer days. Temperature-sensitive goods like fruits, vegetables, meats, dairy are transported via reefers. 3. Heavy Size Cargo: Heavy size goods like machinery, industrial equipment, construction materials, automobiles are best transportable on either flat rack or platform containers. They are specifically designed for such goods because most of the goods protrude the standard dimension of the shipping boxes. 4. Liquid Cargoes: Transporting liquid cargoes demands extreme care especially during the transition. A type of container called tankers is used to transport almost all types of fluid materials- from oil, petroleum, water to hazardous chemicals. Even gaseous cargoes are also shipped via tankers. The only thing that could not be transported via shipping containers was human beings. But with time, the man proved it wrong by bringing the idea of constructing prefab houses from shipping containers. Now even people have started to live inside the container-built house which are portable and mobile. Dry Van, also known as the standard container is the most versatile of all types of the cargo container and is used for the transportation of large quantities of goods. Oversized cargoes like machinery, automobiles, tractors, heavy instruments can be easily transported on this. Their strength, durability, rigid construction and compelling structure make it a preferred mode of transportation and widely trusted freight transportation. Unlike other shipping containers, the dry van is not just a container instead with every dry van a trailer is attached and which is further attached to a semi-truck. Therefore, it can be transported easily and conveniently over the roads on the high ways. It opens at the rear and has two leaf doors that allow easy accessibility to loading and unloading of goods. Because of its capacity to carry most of the goods, it is often referred to as a general-purpose container. Dry Cargo container, Standard container, and box are some of the common terms used for them.
How it got its name? The name dry van is coined asserting the fact that they can keep cargoes dry as well as protected from external climate, debris, and accidents and spilling. Types of Dry Van Containers 20’ Dry Van Internal dimension- 19’4x 7’8x 7’10 External dimension- 19’10x8x8’6 Door opening- 7’8x7’5 Tare weight- 4960 pd Max gross weight- 67200 pd 40’ Dry Van Internal Dimension- 39’5x 7’8x 7’10 External Dimension- 40x 8x 8’6 Door Opening- 7’8 x 7’5 Tare weight- 8330pd Gross weight- 67200 pound 40’ High Cube Internal dimension- 39’5x7’8x8’10 External Dimension- 40x8x9’6 Door opening- 7’8x8’5 Tare weight- 8860 pd Gross weight- 67200 pd 45’ High Cube Internal Dimension- 44’5x7’11x8’10 External Dimension- 45x8x9’6 Door opening- 7’8x8’5 Tare weight-10626 Gross weight- 67064 What are they used for? These trailers are best suited for international freight forwarding to cover short as well as long distances by road. These are very versatile and thus known to hold a range of products- from automobiles, construction materials to non-perishable beverages. They are also used for the shipment of raw materials and small tools and machinery for the factories and construction sites. Besides, they also serve their application for relocating household goods like furniture, electronics, etc. Several questions arise in mind while buying shipping containers and whether to buy new or used shipping containers is one amongst all. Everyday millions of containers sail across the seven-seas encountering harsh wind, scorching sun, and salty seawater. At the same time, thousands of new shipping containers are manufactured in the world. All this says that one can have a vastness of options as to whether go for brand new shipping boxes or a used box will be equally viable.
Although buying new helps you breathe a sigh of relief as it keeps you away from worries regarding its quality, used containers with minor dents and patches also work wonder as long as it is water-tight and secure. Various factors count while considering which one suits your purpose best. Whether it is for cargo shipment, storage, or building purpose. Basically, there is no right or wrong choice. Both have their own pros and cons. New vs Old: Well, most of us think that buying a new container means we get a fresh piece manufactured out of the factory but that is not true. Most of the new containers are actually one-tripped. It means they have already been used once for the shipment of cargo. When new boxes come out after manufacturing, they are loaded with cargoes, shipped, and then unloaded at the port of destination and further listed for sale. New/One-trip containers are ideal if the aesthetic is required elsewise, used one also serves well if they are in good condition. Let’s dive deep into factors that you must consider before making a final buying decision Purpose Knowledge of your purpose for acquiring containers is of paramount importance. No doubt, shipping containers serve multiple purposes- shipment of cargoes, storage, or construction of houses, office, store, and many more. Yet, one needs to specific regarding its purpose. 1. Construction: Generally, for building purpose it is always advisable to buy new shipping containers addressing safety. The used cargo boxes are exposed to a wide variety of substances carried on them during its course in shipping lines and thus the chemicals and other harmful residuals can make those containers dangerous to be used for residential purpose. If you can’t afford a new one, you can still use old boxes after getting them cleaned properly from your container supplier. Boxes like 40’ hard top open top, 40’ Side doors can be modified perfectly to craft buildings out of them. 2. Cargo Transportation: For shipment, both new and used stands to be perfect. If you don’t mind minor dents and scratches, buying used could be an excellent choice. While they are already used, they are designed to last for years. But what you need is to be cautious about interior damage, leakage, or lose door hinges because that can somewhere harm your cargo during the transition. You can also get them repaired and modified. 3. Storage Units: Whether you want them for inventories, household appliances, or use them as a storeroom, it’s not necessary that you go and buy a brand new from the market. A used one can always fulfill this need. Since storage does not require much of the handling, all you do is load your belongings and keep them at a place for whatever period you want. So, a used container in proper condition is a perfect choice. Spending a big amount in acquiring a new one will not be too economical. 4. Price: The budget plays a major role in determining whether to opt for new or used. Undoubtedly, there is always a high price for something new and price tends to depreciate as the product grow old. The same happens with the containers. When you go for a new one, you have to pay the actual amount of the box while for used ones you get a good consolation. The more it is depreciated, the lower you will have to pay depending upon its age, damage, market value, etc. Thus, if you do not want to expand your budget then buying an old would be the best option for you. 5. Condition: What baffles most while doing the right selection of containers is their condition. One trip/new containers are marked with nearly no or minor evidence of wear and tear as they are listed to sales after a single trip. So, you do not need to inspect much in case of new boxes. They are least exposed to the external environment, toxic substances, and offer a longer life span. While used containers are exposed to harsh environment, toxic products during its course in shipping lines for years and hence develop dents, damage, leakage, rust, etc. Still, there is no problem in going for old, but you must thoroughly un an inspection and roll your eyes over every corner of it before making a final buying decision. 6. Cargo Type: Now, this is another factor that should be taken into consideration especially when you’re hiring it for cargo shipment or storage. Most often, a used shipping container is not considered to be safe enough when you are dealing with food products like vegetables, fruits, grains, coffee beans, etc. You never know, for what other cargo types, the containers would have been used. Used containers are highly exposed to toxic substances that reside either in the corners or folding. Shipping food products in a very old container can put entire goods at risk. So, it’s better to use new/one-trip containers for the shipment or storage of edible products. 7. Wrapping up From the above reading we can conclude that, both have their own pros and cons but what suits your purpose best can only be determined by considering the above factors minutely. You may need to list some additional features as well while making a choice. Take your time, ponder over every factor. But safety should always precede price. And once you have the final decision in your hand, finding a relevant container supplier should be next on your list. At LOTUS Containers, we have been your specialist in providing the right containers for your requirement. Whether be new or used, rented or purchased, Shanghai or Miami we meet your every requirement with affordability & flexibility. The ancient Silk Road that existed 2000 years ago was known to be the major trade route of the world connecting the East and the West. However, its significance and uses went obsolete with technological changes and declining transportation cost as the industry have shifted more towards air and sea freight.
In 2013, China launched an ambitious project to once again connect itself from Europe across land and sea- under the slogan- One Belt, One Road (OBOR). This great Silk Road will link China with Iran and Russia while crossing through Central Asia. The track emerges from China’s Xian province and ends up in Rotterdam in the Netherlands. This new Silk Road is not a new discovery. Although goods were moved between China and Europe through the Trans-Siberian route since 1973 the cold war did not allowed for the smooth movement. Currently, there are two routes from northern china that heads towards Europe terminal stations like Hamburg or Duisburg via Mongolia, Russia, and Kazakhstan. And the route also connects China’s west side residing 30 million populations to the northern routes. Nevertheless, the new Silk Road referred to as the BRI- Belt and Road Initiative by China’s President Xi Jinping aims at boosting an interconnected route between china and Europe. According to a recent report, it is anticipated that the total investment can reach up to 1.3 trillion US dollars by the year 2027 where more than 150 countries and international organizations have made commitments to contribute by investing some amount of capital. From a political perspective, china’s economy is expected to boost enormously on the global stage. And From a logistical perspective, the infrastructure and interconnected network will emerge on a completely new scale in upcoming years. The New Silk Road will be a paradigm shift in world trade. But the question arises, how worth is this new Silk Road over the sea and air freight. The data says, a total of 2,400 trains carried 145,000 TEU between China and Europe in 2017 which is equivalent to the containers carried by seven large vessels. The figure is anticipated to spike to 670,000 TEU in the coming decade. From China’s Perspective: Some postulate that China wants to upraise its economic power and others compares the project to the Marshall Plan. But perhaps the motive could be simple that China just wants to get rid of its bottlenecks or overwhelming capacity issue. No doubt, this longest linking rail route will significantly boost China’s economy and will also reduce social tension between the coast and provinces. The new Silk Road is meant to reach far beyond improved logistics. IrakliGaribashvili, the Georgian Prime Minister called the new silk road ‘a corridor of global prosperity and cooperation’. President Xi Jinping said the project aims to have of five principle pillars-
Advantages to Europe: According to the World Bank, the pace at which china’s economy is growing in the past few decades, in total, it is still roughly half the size of the European Union’s economy. Therefore, One Belt, One Road project is imperative for the economic growth of European continent. No doubt, China and Europe have been the two main economic poles for centuries. Europe being the china’s largest trading partner and China being the second-largest trade partner of Europe holds the maximum control over the world trade route connecting these two poles. Thus, trade between them dominates the other region. The New Silk Road aims to serve all parties- small or large and will open wide doors for freight forwarders to expand their businesses. In the long run, everyone is going to be benefited from the project. One of the main motives of the project is to link the East Asian economic circle with China with Europe. Under the framework, Europe is hugely going to build new international economic corridors- like the ‘new Eurasian Land Bridge’ aimed to decrease trade cost and promote flexible and smooth trade practices. What do experts say? Some experts believe that the volume of cargo transportation through the network will not witness much growth and will remain small as compared to ocean freight. They describe that various reasons are responsible for this. Cost: The transportation cost of standard shipping containers from Hamburg to Shanghai is high when transported by rail and very low when transported by ship. The gap is so big for rail transport to be competitive against the sea freight. Although, the transit time by rail is much less than that through ship but the high cost through railway is unaffordable for many shippers. Support: China greatly subsidizes the international rail connection that enables the rail freight to offer competitive prices. Once the subsidies are declined or terminated, the competitiveness of rail transportation will not remain the same effective. The recent report says the Chinese subsidies for rail freight traffic to Europe has now been put in place ceilings and will end by 2021. There has been no formal announcement but the anticipation says that Eurasian rail traffic should now stand on its own feet. Speed: Rail is indeed the fastest mode of transportation than the sea but when compared to air freight it doesn’t give competitive speed advantage. Many times, shippers who require urgent transition would opt for air freight even if the cost goes beyond. Thus, freight rail stands at the midway of air and sea freight. What benefits the Silk Road holds within? Reduced Transit Time: Sea transportation has been one of the most preferred modes of shipment for carrying heavy and bulky cargoes between China and Europe. But the initiative of the new Silk Road project seems to alter this notion. While a vessel takes approx 35 transit days, through rail it takes just 18 transit days to reach the port of UK from china. Almost half the total time took by Maritime. Thus, rail stands to be the best suitable mode of transportation by freight forwarders if time-sensitive cargo needs to be shipped. Lower Transportation Cost: The unpleasant and incessant financial crisis has put the air freight option at an unaffordable stage. Although shippers have sea freight as another best option it lacks in speed. All of these fragmented a luxurious market niche for rail freight. Freight forwarders are now seen registering an increasing number of inquiries into the new Silk Road route as an alternative to the slower maritime and costly air services. Customers are therefore strongly asking shipping companies to include the China-Europe rail in their catalog. Environment-Friendly: After the implementation of IMO 2020 regulation, various shippers in order to escape from the high cost of less sulfur content fuel or installation of bunker scrubber impose high freight rates on customers. As compared to air and sea, rail stands at the bottom in polluting the environment. Some container service companies like LOTUS Containers have already adopted the China-Europe rail route as a part of supporting greener modes of transportation. Also, the route aims at saving 75% of the carbon footprint of the ocean route and reduces several congestions existing in and around the seaports. The big family of shipping containers which has one side simplified the transportation of almost all types of cargoes has also paved a lot of indecision amongst shippers regarding their use, functionality, dimension and so on- as of which to choose. Unlike earlier, nowadays shipping companies and freight forwarders are found with immense confidence because of meeting your every requirement by presenting a wide array of equipment. Their list includes every container type- from dry van, pallet wide, side door, insulated to reefer. Amongst all, a container that has proved to be the prominent solution for the transportation of oversized cargoes is the Flat Rack. Yes, you heard it right. Where every container is posed to have a certain dimensional limitation, a flat rack comes up with no limitation to cargo size. What are flat rack containers? Flat Rack is a container type that is extensively used for the transportation of heavy loads usually extending the size of a standard container. They do not have a close and packed body, rather they have walls only on their shorter side (breadth side). The lengthwise sides do not have any walls or you can say the longer sides of a flat rack are open. Thus any cargo that goes beyond the size of a standard container like pipes, iron rod, machinery, can easily be loaded and transported. They are manufactured in two different sizes- 20’ and 40’ Flat racks. Usually, the dimension of these two differs only in length while the height and the width remain almost equal. Collapsible VS Non-Collapsible- Flat racks are also differential based on their flexibility- collapsible and non-collapsible. Did you know that a flat rack can also work for you as Platform containers? Wondering how? Well, this is because the walls on the two ends or on the shorter sides can be either fixed or folded. The one with fixed walls is called non-collapsible while the other with removable walls are the collapsible flat racks. In contrast to other containers, a group of collapsible flat racks can be stacked within a constraint space reducing the empty positioning cost. Which cargo finds the best suitability for a flat rack? Cargoes with unique dimensions that cannot be fit inside a closely packed box or the one requiring loading from the top or sides should be transported in a flat rack. For example- trucks, boats, machinery parts, construction equipment, etc that need to be shipped as a whole. Asserting the safety of cargoes and workers handling the heavy and oversized cargoes at the port, shipping lines impose some guidelines which must be followed while working with a flat rack container. Go through the guidelines given below as it stipulates how the cargoes should be handled, stowed, loaded and unloaded to meet the safety.
The supply chain is one of the most pivotal parts of businesses of all kinds whether it be small, medium or large scale business. A proper supply chain management ensures that the products are supplied to you without any damage. Shipping goods in a proper condition is imperative for customer satisfaction as well as the business itself. Every day tons and tons of goods are being loaded in shipping containers and transported from one place to another via several intermodal transportation services. The overall activities of transporting goods from manufacturers to the end-consumers need lots of care and effort during the journey. Many freight forwarders avoid this need simply by overlooking some important points that should be kept into consideration to prevent any damage to your product.
Let’s dive deep into some helpful measures to avoid freight damage Proper Packaging: Not all goods are of the same size, same weight or same type. The properties of freight vary and similarly the way of packaging also varies. To fulfill your top priority of shipping goods profoundly to your customer, you must enquire what special packaging does your freight requires. The packaging is done in different ways- from using simple carton boxes, pallets, shrink wrap, bind or staple to large wooden crates. Knowing what packaging suits your freight is of uttermost importance. You must avoid a few mistakes while packaging Single Risk Packaging: Wrapping your consignment is good but it can only protect it from scuff and dust, it cannot avoid the damage from crush, vibration or any kind of crashes. To safeguard your product, you should not only wrap it but also pack it inside stiff boxes, etc. Leave Space: While packing goods inside boxes, one must leave adequate space between the goods and inner walls of the boxes. The vacant space then must be filled with thermacol, airbags, foams, etc to avoid breakage. Avoid Recycled Packaging: Some packing materials like cartons or polystyrene are not suitable to use the second time for packaging. Instead of protecting your freight, it may cause extra damage. Proper Palletizing: One must be very cautious while considering the type of pallets on which the cargoes are to be loaded. It’s not the pallet type that ensures safety but the way in which goods are stacked over also matters a lot for cargoes' safety. Pallets differ in size, types, materials, stackability, structural integrity, etc that make it either fit or unfit for your cargo type. Wrapping your goods with at least 5 layers of plastics and shrinking them by a heat gun or sending them through a shrink tunnel makes the packing durable and strong enough to stand firmly on pallets. The boxes should be laid on pallets like bricks; the pyramid structure should be avoided in arranging boxes. Heavy and bulky loads must be placed below the light-weighted materials. Proper Labeling: The chances of freight damage can be reduced by labeling each box with every necessary detail used between the destinations. The shipping label is a type of identification label sharing important information to describe and classify the cargoes inside the boxes. It helps shippers to make important decisions during the entire supply chain. Proper labeling of packaged cargoes helps to avoid extra handling and reduces manpower efforts. Shippers would not need to open each box and know what’s inside and then process accordingly. Effective Containerization: Shipping containers are extensively being used by the freight forwarding companies to transport loads of goods in a safe and protected manner from more than 50 years. Obviously, containerization provides safety to the goods but only if it is loaded keeping few things in mind. The goods must be distributed evenly on the floor with no vacant space to maintain its center of gravity. Before loading, you must investigate whether the cargo containers are properly cleaned or not. The essence of previously loaded materials may destroy your freight or may give rise to the birth of certain bacteria and fungus. Proper Loading: Proper loading of goods in containers and then containers on a ship is a requisite to avoid freight damage between transits. By applying given below points one can succeed in having effective loading.
Proper Handling Practices: Proper handling practice can be achieved by improvising two important factors of the supply chain- First- machinery & equipment and Second- human resource. Using proper equipment that can easily and systematically handle freight is a must to ensure customer satisfaction regarding his freight. Before practicing it for loading or unloading, make sure material handling equipment like cranes, forklifts, trucks, pallet jacks, conveyors, strapping machines, etc are at proper working conditions. Apart from the machinery or tools, employees and staff should also be provided with adequate training to reduce in-time mistakes. For example- the forklift operators should know well about the weighing capacity of the forklift. Unaware of the machinery knowledge may damage machines and freight both causing great loss to the company itself. Proper Warehousing: Proper warehousing plays a key role in ensuring your freight safety. You must verify from your shipping company that the warehousing facility they are handling is good or not. A good warehousing company will identify the atmosphere required by your freight and will keep your freight accordingly. You must ensure about cleanliness, spaciousness, security, place, electricity, etc as it will give an idea that whether the particular warehouse is safe for your type of freight or not. Associate With The Right Freight Partner: Even if you keep in mind all the above-discussed points, but you ignore the importance of selecting the right shipping company the chances are high the above-applied things won’t work for you. It’s always advisable to think multiple times before coming into a contractual agreement with a freight forwarder. The right freight partner works with the motive to deliver excellence in each service to its customers. LOTUS Containers, serving clients from all across the world from decades is one amongst profound shipping Container companies, known to deliver A+ services for your freight storage and transportation both. Transporting your good from one location to another across domestic and international boundaries is a bit complicated than one would imagine. Successful shipping requires a good knowledge of the important documents and types of freight charges before the shipment, during the shipment, and post-delivery. The biggest cause of concern is the various freight rates that are imposed on the goods meant to be transported. According to research, it was found that an average of 20 freight charges and surcharges exist that are meant to get cleared to ship internationally. But not all of us are aware of the fact. Do you really know what these initials mean actually?
WHAT IS A FREIGHT CHARGE? The charge imposed by a carrier to deliver cargo from the source location to its final point of destination is called ‘Freight Charge’. Meanwhile, there is a variable cost associated with freight that a consignee has to pay like packing, loading & unloading, documentation, customs clearance, insurance cost, carriage cost, warehousing, etc until the final shipment of the consignment. Well, given below is the list of 25 different charges but before we jump into it, it is important to know a brief about two charges - Bill of Lading & Freight Bill. Good knowledge of this will help save your time and eliminate confusion. BILL OF LADING: The Bill Of Lading is a legal document provided by the shipping companies/ 3PL companies that include necessary details about the destination, types, quantity, volume, dimensions of the cargoes being transported. It is served as a shipment receipt as a contract for both shippers and carriers as a document of title stating freight collection destination, delivery location & ETA (Estimated Time Arrival). It must accompany the transported goods, no matter the modes of shipment, and it’s necessary to get it signed by an authorized representative from the carrier, receiver or shipper. It is a prerequisite for the shipping companies and customers as well to check BOL thoroughly and ensure that it is accurate because being a legal document, it can also be used in the jurisdiction to determine company’s obligations, etc. FREIGHT BILL: Freight Bill is often gets mixed up with BOL, but both are ultimately different terms defining the different meaning that unlike BOL, Freight Bill does not serve as a key piece of evidence in the court of law during a legal dispute. While Freight Bill/ Freight Invoice looks similar to BOL counterparts, it may also include additional charges, stipulations or information that serves to the information clarification of the lading documents. Though they do not seem to be much important during shipping they are retained for long instances to make available at the time of audit it becomes an important source to evaluate and examine records. List of various freight rates imposed before, between and after transit PRIOR MAIN TRANSIT CARGO INSURANCE: Cargo Insurance avails a customer with compensation against any loss, damage or theft of your consignment during shipment. It usually varies in cost from a minimum of $400 to a maximum of $1,800 for the yearly premium depending upon the cargo policy provided by your freight shipping companies. CUSTOM BONDS: A custom bond is a legal contract among customs, importer and a surety providing a guarantee to specific obligations. It ensures all the charges and duties associated with defined rules and regulations. As per US Customs regulations, a Custom Bond is a must to import goods to the US. The average cost for a continuous custom when purchased from a broker may cost from $400 to $500 annually. BOOKING FEE: This is the fee levied by the forwarder at the point of origin for the booking of cargoes. The rates can vary from company to company. It also depends largely on the mode of shipment and types, volume, quantity, of goods to be transported. ISF FILING: The Importer Security Filing also known as ‘10+2’ gives the CBF a heads up to safeguard high-risk cargoes that documents importing information & details of its route during shipment. It does not imply to bulk cargoes and only affects the imports of Ocean vessels entering the US border. CONTAINER FUMIGATION FEE: It is the fee charged for the treatment of goods or cargo containers itself to deteriorate the risk of pest or other harmful living organisms to prevent the transfer of exotic organisms. Empty used cargo containers are frequently fumigated to eliminate such danger. PICKUP FEE: The fee that is charged for the movement of the goods from a factory or warehouse to the point of departure. Factors that determine the rates are the distance to be covered and cargo weight. It can be levied as a set rate or may also include a fuel surcharge. CUSTOM DUTY: Custom duty is an indirect tax imposed on all the goods to be imported or exported. It depends on the value of the cargo, its dimensions, volume and weight, and many other factors. It varies from country to country depending upon their economic condition and government regulations. TERMINAL HANDLING CHARGES: Terminal handling Charges or Container Service Charges, applies only to ocean freight is a sum of the cost associated with the containers terminal’s provider property. It is basically an additional cost charged by the shipping companies for handling and managing containers before being loaded. SECURITY SURCHARGE: Security Surcharge is the charge imposed by port terminals which are assessed to recover capital spent for maintenance and surveillance provided by the port authorities. Under the notice filed with the Federal Maritime Commission, this should be collected from all barges, vessels, cargo interests utilizing services at the port mandated by the Maritime Transportation Security Act of 2002. CONGESTION CHARGE: This is an additional charge that is levied on the shippers during the high peak season or unusual events such as strikes, port fires, bad weather, etc. This is basically a system of surcharging users to remove their cargoes and make port congestion free. CONSOLIDATION FEE: Most of the time, multiple shipments from various shippers are combined and packed in one container in order to utilize full space and provide shippers with a cost-efficient method. Hence, to process that, a service fee for collaborating and packing several smaller cargoes in the same container is charged known as consolidation fee. MAIN TRANSIT WAR RISK SURCHARGE: This is an additional charge applied when the freight has to go through war zones or hijacking areas to recover potential extra costs for re-routing or advanced securities, etc. In response to certain attacks on tankers in few regions, annual war risk surcharge and breach premiums have climbed since then. BUNKER ADJUSTMENT FACTOR: Bunker Adjustment Factors or Bunker Contribution is a surcharge imposed by ocean carriers to safeguard them when fuel prices are subject to major fluctuations. It specifically accounts for vessel fuel prices and is set three times annually by the TSA (Transpacific Stabilization Agreement). CURRENCY ADJUSTMENT FACTORS: CAF is applied in a supplement to the freight cost to account for constant fluctuating exchange rates between the US and other countries. The CAF has an inverse relation with the value of the US dollar. It varies according to the destination country. PEAK SEASON SURCHARGE: During the peak season/ high season when demands are high and supply is less, shippers generally tend to increase the price on the base rate either to earn more profit or due to unavailability of cargoes and ship. It can be applied at any time of the year but comes in motion drastically during the Chinese New Year. So, to transport your freight during high season, you will be incurred to pay the extra sum. AT DESTINATION- CUSTOM CLEARANCE FEES: It is a kind of tariff or taxes imposed on imported goods because the imported product does not belong to the country and hence shippers have to pay an amount to get their customs cleared. The charges vary from country to country depending upon their policies and trading structure. The standard custom rate of China is $50 and CBP is $100 to $200. MERCHANDISE PROCESSING FEES: MPF is a fee imposed by the United States CBF for goods that are imported to US boundaries. Many do not even know this in beginning or during the shipment because it is not included in the quote rather it appears on the invoice as a custom charge. The minimum fee of $25 and a maximum fee of $485 can be charged depending on the products. HARBOR MAINTENANCE FEES: The HMF was created pertaining to the Water Resource Act of 1986 intended to collect money from shippers and whoever benefitted to share the maintenance cost. It imposed by the US and CBF for ocean freight at the rate of 1.25% of the value of commercial cargo. The charge is collected on imported goods, domestic shipments, passengers and Foreign Trade Zones. PIERPASS CHARGE: This charge was made applicable in the ports of Los Angeles and Long Beach for day and night time containers movement. The main agenda behind imposing this charge is to reduce traffic congestion in the region. It’s a kind of traffic mitigation fee that is charged at the rate of $31.52 per 20’ shipping containers and $63.04 for all other size containers. ALAMEDA CORRIDOR SURCHARGE: It is a surcharge imposed only to cargoes containing southbound containers moving via Alameda Corridor through rail. This is a standard gate pass charge imply to cover their operating costs and construction debt and hence it is not negotiable. DEMURRAGE & DETENTION: These are the two charges that are associated with the usage of shipping containers for rent. Amongst the two, demurrage is the charge applied for storage of containers at rail or ship terminals, depot, inland, or yard, etc while detention is the fee that is imposed on a consignee for holding containers with him for more than the allotted time. EDI OR TAX RELEASE: Charges that are applied to cover the cost of automated technical-commercial conversations by sending forms and messages, formatting documents to ports, governmental agencies, CBF using EDI (Electronic Data Interchange) or Telex. DELIVERY FEE: It is the fee to be paid after delivering your goods at the port of destination from a warehouse. The fee is highly determined by the two factors namely- the distance between the warehouse and terminal, and the weight of the cargo. CHASSIS USAGE FEE: Chassis is a special kind of trailer used for the movement of ocean containers on the road. The chassis usage fee is generally imposed to encourage truckers and shippers to avail their own chassis or undercarriage for the movement of ocean containers. The daily rate ranges from $15 to $25 and it may also vary as per the carrier. CONTAINER CLEANING FEE: After the shipment, Some products make containers dirty, stained, and have fumigation residual left which makes it unfit for further cargo shipment. If the containers do not meet interior and exterior cleanliness standards, then a fee covering extra cost of water wash, chemical wash, etc is applied to the consignee in the form of Container Cleaning Fee. |
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