Properly Packaging and Labeling Your Freight
Packaging freight in new boxes is ideal. Because boxes wear and weaken with each use, using new boxes insure the integrity of the box is at 100 percent. However, when reusing boxes be aware of the current integrity as it will determine how secure the contents are. If the shipment is particularly heavy, ensure that the seams are reinforced with staples, glue or tape. Ensure that the contents of the box are protected with one to two inches of packing material or padding. Remember that all packages must be properly labeled, ideally, placed on the long and short side of the package. Also when reusing boxes remember to remove all of the existing labels and barcodes, this will eliminate confusing when adding new labels.
Palletizing Freight
Anytime you ship large and heavy items or several packages of freight, using a pallet either made of wood, plastic or aluminum is essential. This will ensure your freight is secure by either banding or wrapping your cargo to the pallet. Ensuring that the pallet is in good condition with no cracks or bends will help to avoid damaged freight. Pallets also allow the freight to be easily moved with a forklift or dolly. Pallets vary in dimensions and payload capacity, so it is important to consult with your third party logistics provider (3PL) regarding pallet dimensions and weight limits. When palletizing freight domestically, wood, plastic or aluminum pallets are acceptable. However, when palletizing freight for international shipments this is not the case. Only plastic and aluminum pallets that have been treated can be used. Wooden pallets can carry molds and parasites that may damage local plant and animal species.
Bill of Lading
Every domestic and international shipment must have a bill of lading. A bill of lading, or BOL, is a legal document that acts as both a receipt of goods being shipped, as well as the contract to deliver the goods. Filling out the BOL accurately and completely will ensure the freight is transported and delivered as desired. The BOL will also help to ensure an accurate invoice for you. Some important fields that must be filled out correctly on the BOL are, but not limited to:
From – contains the information relating to the company, group or individual that releases the freight for transportation.
Consignor – can be used interchangeably with shipper, contains the information related to the company, group or individual that will be responsible for sending a shipment to the desired destination.
Description – contains all the information related to the type of package, the articles being shipped, any markings or remarks.
Weight – details the weight of the freight and is a variable in determining the cost for moving freight.
Class – is a numeric indicator that is used nationally to classify freight. Commodities are grouped into 18 classes between 50 and 500. The class is used as variable in determining the cost for moving freight. National Motor Freight Classification (NMFC).
Intro
The rules and regulations of LTL shipping can sometimes seem overwhelming, even to the most seasoned shipper. After all, there's much to understand to keep things running efficiently.
For instance, you need to know how your product is defined by the trucking industry (referred to as the product or freight’s NMFC), how to properly prepare your shipping documentation and how the freight should be properly packaged or bundled. You'll also want to evaluate carriers and the variety of options that are available to you for getting your freight to its final destination as quickly, reliably and cost effective as possible.
The NMFC
When it comes to getting your products to your customer, one of the first things you need to consider is how your product is defined by the trucking industry.
In the world of LTL shipping, different types of products - from steel bolts to auto parts to blenders - are defined according to their makeup. Each product definition is called a classification. The class of your freight plays a prominent role in calculating the freight charge for transporting the shipment.
How are freight classes determined? The many classes of freight are catalogued in the National Motor Freight Classification tariff, commonly referred to as the NMFC. The NMFC is a publication for motor carriers containing rules, descriptions, and ratings of all commodities moving in commerce. The publication is used to classify freight for freight billing and rating purposes.
Besides defining the classes of shipping commodities, the NMFC also assigns item numbers to each type of commodity. The item number is related not only to the commodity itself, but to the material from which the commodity is made, its packaging, and other factor and considerations. Item numbers are associated with rates as well as commodity classifications.
With page after page of item numbers, commodity descriptions, and freight classes, the NMFC is an excellent reference book for the transportation professional. They also offer an online version of the reference book as well called, ClassIt. The book also describes shippers' responsibilities, as well as many of the responsibilities of the LTL carriers.
Freight Classes
What do all these different freight classes mean?
As mentioned, several elements, including density and value, determine the freight classification of a commodity. Take ping pong balls, for example. Ping pong balls are class 500 (the most expensive freight class) because of their density, or lack thereof! A carrier can fill an entire freight trailer full of ping pong balls without having much weight loaded. Since rates are based on weight and density, the rate for transporting ping pong balls is higher than it would be for something like heavy steel parts.
But even with very low-density freight, there are ways to reduce your freight rate charges. Looking at another example from the NMFC to see how you can lower your freight charges by accepting some of the risk (or limiting the value of your goods in the event of loss or damage).
Perfumes in barrels or boxes may be classified under NMFC item 59070, class 85. But NMFC note 60000 states that as the shipper, you may declare a "released value" in writing on the bill of lading. In this case, the released value of the property cannot exceed $2.15 per pound. If you put this released value on the bill of lading at the time of shipment, your barrel of perfume's class will be reduced to class 70.
This means a lower shipping rate. In turn, the carrier has limited its liability to $2.15 per pound should damage or loss happen to the shipment. Therefore, stating the released value of your goods on the bill of lading and accepting the associated protection tradeoffs can adjust your classification and lower your rates.
How Freight Rates Are Calculated
Freight rates are based on many factors, including:
1.The distance the shipment is moving
2.The shipment's weight
3.The density of the commodity being shipped
4.The commodity's susceptibility to damage
5.The value of the commodity
6.The commodity's loadability and handling characteristics
The last four elements (among other criteria) go into establishing the classification of a commodity. The NMFC, or National Motor Freight Classification tariff, contains all product classifications. There are eighteen possible classes ranging from 50 to 500. The higher the class, the higher the rate for every hundred pounds you ship. Most less-than-truckload rates are stated as a rate per hundred pounds, or per hundredweight. Rates are structured so that as the weight of your shipment increases, the rate per hundred pounds decreases.
For example: a shipment weighing 100 pounds may cost $41.00 per hundredweight, while a heavier shipment--say, 500 pounds--of the same commodity (moving to the same final destination) may only cost $35.00 per hundredweight. But doing the math, we see that the total charges for the 500 pound shipment are higher (5x$35 is greater than 1x$41). Most LTL carriers state a minimum charge for very light shipments.
Before You Ship
No matter which LTL carrier you select to transport your goods, taking a few important steps before the driver arrives for pickup can keep business running smoothly:
1.Prepare your packaging
Secure and proper packaging helps ensure trouble-free shipping. It also helps limit any possible damage from transloading the packaged freight. All goods should be protected with proper packaging in compliance with the NMFC. (For hints and examples, take a look at the examples under Preparing Your Package below.)
2.Label every piece clearly and completely
Complete names and addresses on each piece are needed to ensure that packages in your shipment arrive intact. Label placement is important too. (For hints and examples, take a look at the examples under Proper Labeling below.)
3.Complete a bill of lading
The bill of lading is a legal contract between the shipper or a 3rd Party Logistics Provider (3PL) and the carrier. It should state exactly what is being shipped, where it's coming from and where it's going to, etc. If using a 3PL, they will usually provide a system generated BOL for the shipper to use for the freight shipment.
4.Select a carrier
Selection criteria are often based on the commodity you are shipping, the services the carrier can provide, where your shipment is going, the date by which the shipment should arrive, and the cost of these services. You must evaluate the options based on your company's freight shipping needs.
5.Place the order
Depending on the time of your order, most carriers can have a truck at your location that same day or usually the following day at the latest. The carrier or 3PL provider will probably ask where the shipment is going, how much it weighs, if it is ready to be picked up, how late the shipment can be picked up, and who is paying the charges. Hint: Place the order early in the day to increase your chances of a same day pickup.
Proper packaging is a must.
Don't ship your goods without proper packaging and protection. Many claims and freight damage arise from improper packaging--and packaging errors may eliminate the carrier's liability.
When possible, heavy, bulky items should be placed on pallets for improved handling and care. To maximize carton strength, stack cartons on the pallet vertically. You can secure cartons to a pallet with banding, shrink-wrap, stretch-wrap, or breakaway adhesive.
Cartons should be stacked squarely on the skid, with no overhang. Box flaps and corrugations should face up. It’s best that the top surface is flat.
Proper Labeling
Shipping labels must be placed on every piece of your shipment. The shipper and consignee information must match the bill of lading information exactly and your labels must be legible and complete.
Ideally, you should place labels securely on both the long and short sides of each piece. DOT hazardous material labels are required when shipping hazardous materials as specified by the DOT. Address markings should be located as shown in the examples below. The location shown indicates the top, a side, or an end. If more than one location is shown, you may choose which one to use.
Bill of Lading
The bill of lading is an important document. It acts as a receipt for goods, a contract of carriage, and may act as a document of title (if order bill of lading). Take the time to make sure the bill of lading is filled out completely and correctly, since this will help ensure error-free delivery of the freight to its final destination. A correct bill of lading also ensures an accurate invoice for you.
Receiving Freight: Clear Delivery
What about when you're on the other end of a freight shipment? Receiving freight can be as simple as sending it if you follow a few steps:
1.Stay in contact with your supplier/shipper to find out when your shipment was shipped, what carrier it was given to, and an approximate arrival date.
2.On arrival, inspect the shipment immediately for obvious signs of damage.
3.Compare the actual number of handling units to the number listed on the delivery receipt.
4.Sign the delivery receipt.
The carrier's driver will usually help you receive/unload your shipment and answer any questions you might have. While the driver is there, compare and count the pieces of freight you are receiving to that of the carrier's freight bill. When you've determined that the condition and quantity of your freight is acceptable, the driver will ask you to sign the delivery receipt. The driver will provide you with a copy and will take the signed copy with him/her (as a delivery receipt) for the carrier’s record of the delivery.
When a carrier receives a signed delivery receipt with no exceptions or damages noted, it is called a "clear delivery”. Clear deliveries generally mean everything went smoothly: success for both the shipper and consignee of the freight.
An invoice for the shipment will be sent to the appropriate party soon after pickup or delivery has been made, depending on whether the shipment is prepaid or collect. Questions regarding the amounts shown on the bill should be directed to your carrier or 3PL provider. If you feel you have paid too much, contact your carrier and ask to file an overcharge claim. Note that carriers do charge for incorrect weights and classification of goods. Therefore, it’s very important to state the correct weight and freight class when rating and shipping via LTL carrier in order to eliminate rate changes due to incorrect information.
If a shipment is either short or damaged, you should still accept the delivery but make clear notes of the short or damages on the delivery receipt. Make sure you receive a copy noting the short or damages. It's the duty of the shipper and the consignee to mitigate the loss with the LTL carrier’s involvement. After you accept the shipment, take steps to protect the shipment from further loss and file a claim for the actual shortages or damages involved promptly.
Organizing cargo into a container or on a pallet and loading the cargo into an aircraft sounds like it should be a simple process. However, because there are so many different configurations of aircraft as well as ULD’s (Unit Load Devices, which is either a pallet or container) that will fit in a particular aircraft configuration, it can be a quite complicated process. Having the correct measurements for the cargo, as well as the correct weight is highly important in determining the proper aircraft and ULD.
Among the vast number of configurations of aircraft and ULD’s, there are generally two available methods for securing cargo in an aircraft. One method is securing the cargo to a skid, which is a pallet that is designed for aircraft. Above is a picture of an aircraft pallet displaying the dimensions as well as what the pallet may look like being loaded with cargo and secured by netting. A skid for aircraft is a metal pallet that has d-rings on its outer edges designed to hold straps and tie downs for anchoring the cargo to the skid. Skids are useful in the fact that most aircraft will support the use of skids and their sizes alike. The most common sizes for main deck and lower deck skids are (L x W x H) 238.5” x 96” x 96” (roughly 20’ L) with a max gross weight of 30,000lbs and a volume of 1,174 ft3. The 125” x 96” x 96” skid (roughly 10’ L) has a max gross weight of 15,000lbs and a volume of 606 ft3. Typical cargo for these skids is any cargo that can be bundled and secured with tie downs and netting. Vehicles being shipped by air may also be secured to a 20’ skid with tie downs excluding the netting for transport.
Perhaps the most commonly used method for securing cargo on an aircraft is to use a container. The picture above shows the dimensions of a common lower deck container. There are many different shapes and sizes of ULD’s used for transporting cargo. Common upper deck dimensions are boxed and do not need to fit the contours of the aircraft, (L x W x H) 125” x 96” x 96 with a max gross weight of 15,000lbs and a volume of 606 ft3. However, there are some upper deck containers that have either a wedged top or curved top to fit the contours of the aircraft with the dimensions, 125” x 88” x 64” with a max gross weight of 13,300lbs and a volume of 350 ft3. Most lower deck containers will be wedged either on one side or both sides to fit the contours of the aircraft. The dimensions for common lower deck containers are the 125” x 96” x 64” with a gross weight of 13,300lbs and a volume of 480 ft3, the 96” x 60.4” x 64” with a gross weight of 5,400lbs and volume of 245 ft3, the 61.5” x 60.4” x 64” with a gross weight of 3,500lbs and a volume of 160 ft3, and the 47” x 60.4” x 64” with a gross weight of 2,700lbs and a volume of 120 ft3.
This is just a glimpse of commonly used ULD’s. Keep in mind there are many other ULD’s with varying dimensions and specifications that are available for various cargo types and aircraft configurations.
Ocean Carriers have experienced significant losses over the past three years. As worldwide cargo volume plummeted, freight rates were lowered due to over-capacity and direct carrier competition. Carriers in 2009 lost about $15 billion. In Fiscal Year 2011, the world’s largest Container Line, Maersk Sea-Land reported a $602 million loss and Maersk expects similar losses in 2012. In fact, the vast majority of carriers have posted losses between 3 percent and 25 percent in the same three year period. Cargo volume from Asia did rebound in 2010 by 15 percent. However, this increase had minimal impact on Carrier profitability.
In 2011 cargo volume decreased and, once again, capacity exceeded demand. As a result, Carriers lost a combined amount of about $5 billion for 2011.
Carriers are expected to increase rates sometime between mid March and April this year. COSCO (China Ocean Shipping Company) is raising rates on the trade lane from the Far East to the Red Sea. The increase is expected be $300 per TEU (Twenty-foot equivalent unit). OOCL (Oriental Overseas Container Line) announced a General Rate Increase of approximately $320 per 20’ and $400 per 40’. This rate increase will apply to westbound and eastbound trade lanes. The Shanghai to Antwerp 40’ average standard spot rate has increase 88 percent since October 1, 2011. Unfortunately, it doesn’t stop here. There most likely be additional rate increases this summer.
Smaller shipping lines (carriers with vessel capacity at about 3,000 TEU’s or less) operating in the Trans-Pacific have either left the trade lane or have gone out of business altogether.
Of course we can’t forget the current spike in oil prices that only adds to the increase in freight rates. As crude oil prices rise, the bunker fuel that ships use will increase as well.
Traditionally used for over sized and awkward cargo, flat rack containers have no roof and use removable posts which, makes it ideal for large machinery and construction equipment. Instead of going with break-bulk (being loaded individually not normally in containers), shipping internationally or domestically using a flat rack container may be the best option.
Generally the dimensions for a 20' flat rack are, 20'L x 8'W x 8'"H. With the interior dimensions being, 19'4"L x 7'8"W x 7'10"H. Using nearly the same dimensions of a 20' rack with the exception for the length, the 40' flat rack dimensions are, 40'L x 8'W x 8'6"H. The interior dimensions of the 40' flat rack container are, 38'6"L x 6'7"W x 6'4"H making it ideal for very large machinery or all sorts of large cargo not suited for a standard TEU (Twenty-foot equivalent unit).
The 20' and 40' steel dry cargo containers are the standards for intermodal shipping, making it easier to transfer between different modes of transportation, such as truck, rail and ship. One TEU represents one cargo capacity of a standard intermodal container. The exact measurements do very, however, the most common TEU is about 20'L x 8'W x 8'6"H. The interior of the 20' is 19'4"L x 7'8"W x 7'9"H. Another popular steel dry cargo container is the 40' with the dimensions of 40'L x 8'W x 8'6"H and the interior being 39'6"L x 7'8"W x 7'9"H. The cargo capacity for weight is very close in both the 20' and the 40' containers. The 20' steel dry cargo container has a cargo capacity of 21,600kg or 48,000lbs and the 40' steel dry cargo container has a cargo capacity of 26,500kg or 58,000lbs.
BGI Worldwide Logistics knows that every domestic and international freight shipment is important to you and your business. Our wide range of solutions can safely ship your cargo across the city, state, country or globe by land, sea or air. Known for our expert handling of routine shipments, BGI also provides custom shipping solutions that require extra care and service – while still meeting the time, budget and specific requirements of your freight logistics.
As posted earlier this month, January 1, 2012 was a big day for the ports of Long Beach and Los Angeles. That day marked the finale of the Clean Trucks Program. An initiative pioneered by our local community to significantly reduce the air pollution produced by older, outdated trucks operating in the Long Beach and Los Angeles ports.
The initiative of course does not stop here in the Golden State. In fact, over 3000 miles away, the Virginia Port Authority (VPA) has developed an incentive program with the same goal as the Clean Trucks Program. A simple concept that involves new complex technologies, reducing air contaminates to improve air quality for the local residents and workers.
The VPA started the Green Operators (GO) program in 2007 with the goal of providing financial support to replace older trucks operating in the ports of Virginia.
The GO program has brought the attention of many, now including the world’s largest operator of container vessels, Maersk Line, which will become the first ocean carrier to take advantage of the new incentive program. The GO program for ocean carriers operates the same way as the incentive for the drayage truck operators in the port. The VPA will supplement ocean carrier participants for retrofitting their vessels with ultra-low sulfur fuel designs or use alternative technologies to power their vessels. While in port or at birth, ocean freight container vessels are the single largest producer of sulfur dioxide emissions polluting the air we breathe in our ports. It is important for ocean carriers to take advantage of these types of incentives, as they will help reduce the hazardous pollutants being emitted by our various methods of transportation. The VPA is also offering incentives for vessels that switch to battery-powered technology when using auxiliary engines while vessels idle during cargo operations.
Environmentally friendly ports are continuing their efforts all over the globe; Qingdao Port in China is saving energy and reducing emissions over the next five years, Rotterdam Port Authority promotes incentives for vessels entering their ports as “environmentally friendly”, and Port Metro Vancouver offers financial incentives as well as their Blue Circle Award in recognition for eco-friendly vessels.
We may see a growing trend in communities working together to develop and promote technologies that increase the efficiency of our goods moving across the United States and the world, as well as decrease the pollutants produced by the different modes of transportation.
New Year’s Day 2012 has marked the official completion of the Clean Trucks Program in the Port of Long Beach (POLB) and the Port of Los Angeles (POLA). The program has been a successful effort that has reduced pollution from trucks operating in the harbor.
A ban was implemented on the older trucks back in 2008 in an effort to clean the infamously smoggy air around the ports. In February 2009, the port started collecting a fee of $35 per 20’ container and $70 per 40’ container to assist in the financing replacement of the trucks. The fee is charged to the cargo owners and is paid electronically via the internet.
The final step in the process is to remove the oldest trucks from the road and replace them with models that are 2007 or newer. With the start of the New Year, over 11,000 container trucks conducting operations in the POLB and POLA as well as 800 non-container trucks will be replaced with 2007 or newer trucks. In addition to these, approximately 7% of the cargo moves are made by trucks that run on liquefied natural gas (LNG), compressed natural gas or clean diesel technology. The use of these technologies reduces many air contaminates including diesel particulate matter (DPM), which is considered a carcinogen in the state of California.
The objective of the Clean Trucks Program has been accomplished in the POLB and the POLA and has reduced air pollution by 90% in just over three years. This is an impressive accomplishment and a symbolic day, as this sets an example for the entire industry.
As of January 2011, all trucks entering the Port of Seattle, must meet federal emissions standards for trucks 1994 or newer. Trucks that do not will be turned away at the terminal gates. The next milestone for Seattle will require 80% of trucks to meet 2007 engine standards by 2015 and 100% by 2017.
The goal of Clean Trucks Program is to keep trucking partners in business while supporting clean air for our communities. The bottom line is that the residents in and around the ports can breathe easier.
Author - Heather VanSickle
As global demand for construction equipment increases it’s important to understand the process and ocean freight costs associated with shipping heavy machinery internationally. Most heavy machinery is not shipped in a conventional ocean freight container but instead loaded and unloaded off an ocean freight vessel through a method called roll-on roll-off or ro/ro. Rolling stock is actually “rolled on” a ro/ro vessel. Multi-purpose vessels may or may not have a ramp and may need to be loaded with a crane.
Shipping costs associated with RORO are primarily based on both the cubic meter and weight of the machinery. Specifically ocean freight cost for heavy machinery is based on weight (per ton) or measure (per CBM) whichever one is greater. Weight is also used to determine port/terminal fees. There may be some limitations on vessel capacity if the weight is really high, but this is not usually a factor on most shipments.
To calculate the cubic meter of any piece of equipment, the dimensions (length, width, and height) must be provided by the shipper. Take for example the 13 ton Volvo Excavator pictured below:
Photo courtesy of: http://www.centralplanthire.co.uk/13-ton-volvo-excavator.asp
The length is based on the measurement from the back of the house to the end of the boom (L), the width is based on the measurement of the widest part of the excavator which in most cases is the house (A), and the height is the measurement from the ground to the top of the house (C).
In order to receive an accurate transportation quote shippers must be able to provide the dimensions, weight, and if possible a picture of the equipment being transported. Let the experienced professionals at BGI Worldwide Logistics act as a true partner, assisting you through the import or export process including customs clearance. We also offer trucking services to move your heavy machinery to and from any location in the U.S.
Call 877-417-1516 for a no obligation heavy machinery shipping quote