If planning to ship heavy machinery to continents such as Africa, Asia, and South America it’s important to have knowledge regarding the customs clearance process, how shipping costs are calculated, and the U.S. ports that support RO-RO vessels and the transportation of heavy machinery.
The following are major RO-RO/breakbulk ports within the United States that support the loading and unloading of heavy machinery: New York, Baltimore, Newport News, Charleston, Savannah, Brunswick, Jacksonville, Houston, Galveston, Los Angeles, Port
Hueneme, and Tacoma.
In addition carriers serve specific markets or trade lanes from the U.S., just as in the container market. No one carrier will serve all of the markets and each carrier will only call on some of the U.S. ports.
Rates for heavy machinery are based on the type of unit being shipped, total cubic meters (CBM) of the unit, weight of the machinery and each carrier or port may have their own specific fees such as Wharfage, Terminal Handling Charge, Receiving Fee and Bill of Lading Fee. These can be based on either weight, total CBM of the unit, or a flat fee.
For any rolling machinery, the commercial invoice and certificate of origin must be cleared with U.S. Customs at the port of export. Each Customs office has slightly different requirements such as what documents are needed. The charge for this will vary from port to port.
Let the experienced professionals at BGI Worldwide Logistics act as a true partner, assisting you through the import or export process including customs clearance. Our logistics team will find the best fit rate and service to meet your specific shipping needs.
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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.
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The European Union (EU) is requiring an Advanced Manifest Regulation effective December 31st 2010. The amendment aims to ensure a level of protection through customs control for all goods brought into the European Union customs territory. All goods will be assessed prior to arrival in hopes to prevent any delays in the logistical chain.
All ocean carriers are required to submit an Entry Summary Declaration (ESD) electronically to the customs office of the first European Territory 24 hours prior to cargo loading at the non EU port. Ocean carriers will be required to provide complete shipping instructions including: Automated Export System (AES), number of items, consignor, consignee, seal, and container number. Another person can lodge the ENS instead of the carrier but that does not relieve the carrier of responsibility. The carrier must ensure the ENS is lodge therefore a person may lodge the ENS only with the ocean carriers’ knowledge and approval.
The upcoming regulation is required for all international ocean freight being shipped from a non European Union port that is bound for the EU. The security risk assessment will be transmitted from the first entry customs clearance office to the final destination port. The customs office of entry will always be held responsible for risk analysis of cargo even after the cargo has left the first port of entry in the European Union.
To avoid delays at the European Union port of arrival, it is important that customers provide complete and accurate shipping instructions so the Entry Summary Declaration is accurate. The use of an experienced NVOCC such as BGI is an alternative to dealing directly with an international ocean freight carrier.
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Global demand for construction and mining heavy machinery plummeted in 2008 due to the global economic recession that directly impacted the construction industry worldwide. Demand continued to decline through 2009 and much of 2010, as construction projects continued to slump. Currently the global economy is slowly recovering, causing a higher demand for heavy construction and mining machinery to complete new construction projects in Asia, Africa, and South America.
Asia is forecasted to have a surge in demand for heavy machinery particularly in countries such as Indonesia, India, South Korea, and China due to the rising activity in the residential construction sectors. Of these countries China is estimated to account for the largest demand of heavy machinery. Wheel loaders and excavators represent the largest segment of heavy machinery in China.
IHS Global Insight is expecting an increase in construction activity throughout South America for the remainder 2010 in to 2011. The recent construction activities in South America have raised demand for heavy construction equipment. Brazil is expected to invest $735 billion in infrastructure, industry, and construction sectors over the next three years.
The rapid growth in the overall economy and rising business productivity of many African countries have increased the need for infrastructure and real-estate. Governments, developing authorities, and companies are funding projects in several African countries. The increase of construction activities have resulted in a high demand for foreign manufactured machines and equipment such as concrete mixers, bar-bending and cutting machines, excavators, backhoes, and earth rammers. In addition to developing infrastructure and real-estate many African governments have invested in irrigation and mining projects across the continent.
The demand for heavy equipment in Asia, South America, and Africa is being met not only by foreign manufactures such as Arabian Jerusalem Equipment Trading Company but domestic companies in the United States as well. Many auctioneers here in the U.S. have had a substantial increase in heavy equipment both new and refurbished sold to various Asian, South American, and African countries.
The transportation of heavy machinery can be a complicated process and requires the expertise of an experienced freight forwarder. BGI Worldwide Logistics is a leading bulk cargo broker, with a large network of ocean carriers who can accommodate oversized machinery and can perform roll-on roll-off (RORO) services.
Let the experienced professionals at BGI Worldwide Logistics act as a true partner, assisting you through the complicated import or export process including customs clearance. We also offer dependable trucking services to move your bulk cargo to and from any location in the U.S.
Recent Projects:
Fire engine from Arkansas to Jakarta, Indonesia (ro/ro)
Caterpillar Dozer from Texas to Al Khoms, Libya (ro/ro)
Cement Pump Truck from Texas to Jeddah, Saudi Arabia (ro/ro)
Asphalt Rollers from Michigan to Singapore (40’ containers)
Backhoes from Pennsylvania to Port Klang, Malaysia (40’ containers)
Log Skidders from Oregon to Callao, Peru (40’ containers)
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Several LTL carriers have announced a general rate increase (GRI) taking effect by the end of October. Typically, less than truckload GRI’s are announced around the New Year but improving demand, higher operating costs, and tighter capacity have resulted in an LTL general rate increase heading in to the fall. The upcoming rate increase by LTL trucking giants YRC, Federal Express, and UPS is expected to help other LTL trucking companies hauling low-priced freight bump up their own rates. Typically rates will increase by about 5.9% and some as high as 6.9%. The GRI will effect shipments within the United States, Canada, and Mexico and impact on specific lanes will vary with carrier.
As rates increase BGI Worldwide Logistics works hard to keep prices low and customer satisfaction high. Take advantage of BGI’s network of LTL carriers, blanket and customer specific pricing to provide you with the best rates with exceptional service. With a large network of carriers to choose from, BGI Worldwide Logistics uses the best fit LTL carriers to meet your goals. To further ensure costs savings as rates increase, BGI audits every freight bill to make certain all accessorial charges, reweighs, and reclassifications are correct.
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BGI was founded in 1999 to fill the need for a single source logistics firm that could deliver ocean, air, truck and rail shipping services; while raising the standards of service and commitment.
Domestic Operations Coordinator, Chris Saing best describes BGI’s philosophy on customer service with the following definition:
Great customer service – “To satisfy a customer by delivering high quality service exceeding the customer’s needs.”
I believe there are four main things we need to perform; 1. Communication, 2. Anticipation, 3. Knowledge, 4. Execution.
Communication – Communication sets the tone with customers. This will give the customer the confidence to believe in our ability to perform as an international freight forwarder. Communication has a lot to do with customer service. This includes notifications to your clients and responding within a timely matter to their requests. Make your customer your friend, even if you don’t like them. Listening is also a part of communication. Being a good listener helps us identify the needs of our customers and the message they are trying to deliver. It helps us direct the customer in the right direction and also helps us identify any potential problems before they occur.
Anticipation – Anticipate your customers needs. With effective communication you will be able to anticipate the client needs and provide them with solutions they are looking for. Don’t assume anything.
Knowledge – Knowledge gives us the ability to provide quality service by satisfying the customer’s needs. Be an expert at everything you do. Customers comes to us because we’re expert freight brokers. With knowledge of the industry we’re able to identify the best solution depending on the customer’s need. It also helps us in communicate. We can explain with confidence to the customer on what we’re doing and why we’re doing it. They will be impressed and will come back to us whenever they are in need of assistance. That’s what we want – repeat customers.
Execution – Completing steps A to Z flawlessly will impress the clients. Over performance beats under performance any day. Make your customer believe in our ability to perform. This increases our chances of a customer returning for our services because they trust our ability to perform. That’s what we want a happy profitable customer!
It’s as easy as C.A.K.E.
Call 877-417-1516for a no obligation shipping quote or