Are you paying too much for shipping?

Are you paying too much for shipping?
Are you paying too much for shipping?

Are you paying too much for shipping? Shipping costs are a major consideration when determining the cost of doing business. Some companies can make a living with parcel shipping, but most manufacturing companies and the larger industry rely on less-than-truckload shipping at some point. LTL ("less than truckload") shipping can be expensive - especially if approached. Fortunately, there are options that prevent you from overpaying for shipping, and TJ chinafrieght can help you with that.

The first step is to collect data about your current shipping situation.

Before you can determine if you are overpaying for shipping, you must determine what you are actually paying for. It is important to understand what these costs are so that we can predict future changes in shipping costs.

Shipping rates are unlikely to drop anytime soon.

Remember, shipping has operating costs for them, and as those costs rise, they need to increase the rates they charge us to maintain their profitability. 3PL Corporation is in the business of providing customized shipping solutions to its clients and clients. This can mean anything from a dedicated account manager acting as a liaison to your company's shipping department to a dedicated service offering you co-design. Depending on the specific nature of your shipping needs, the type of 3PL service you require will vary.

LTL shipping is an essential shipping service for businesses of all sizes and in all walks of life.

As the economic landscape of the freight industry changes, the cost of traditional LTL shipping can be more challenging to your business bottom line. Fortunately, there are many tools your business has at its disposal to try and better meet your shipping needs. Want to learn more ways to save on shipping? Contact TJ chinafreight today!

3 key tips for reducing costs when transporting heavy loads

 

Container Cargo ship in the ocean.
Container Cargo ship in the ocean.

Due to the large carrying capacity of ships, sea freight is the best way to transport heavy or oversized cargo. Different containers of various sizes can accommodate oversized sea freight. The smallest container height is 20 feet and the largest available is 45 feet.

If you are shipping heavy and oversized shipments by sea, we recommend that you ship with Full Container Box (FCL) to maximize your costs.

Tips for reducing costs when transporting heavy loads

Shipping heavy and oversized cargo can get very expensive. But there are ways to keep costs down.

1. Adjust the packaging

Packing can expand the cargo even further, and sometimes this is not recommended if you want to save on shipping costs. However, you can adjust the packaging by reducing packaging, packing more product into one container, or deflating the plastic packaging. These can reduce the space your cargo takes up and reduce costs accordingly.

2. Consider bulk shipping

If you're a frequent shipper, you can make the most of your shipping costs by maximizing less frequent orders. For example, consider shipping orders in bulk rather than weekly. This scheduling strategy will reduce your vessel and cost per shipment. However, for time-sensitive cargo, this may not be a viable option.

3. Correct container type

There are other costs associated with different sized containers. For example, moving a 40-foot container is more expensive than driving a 20-foot container. So it will help if you have a good idea of ​​the size of the selected container.

Why do you need a freight forwarder that provides it?

Why do you need a freight forwarder that provides it?
Why do you need a freight forwarder that provides it?

When transporting your goods, whether by road, air or sea, there are various risks. Even with the assistance of a reliable freight forwarder, there are many external factors that can interfere with the progress of the logistics process.

The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.

Guaranteed no financial loss

Everyone wants hassle-free shipping. No one wants to have problems shipping their goods overseas, but there are still some risks you can't avoid and can cause problems with your shipments. This is the most important reason why you need to rely on a freight forwarder who provides cargo insurance: they will ensure that you will not suffer any financial loss if anything happens in transit.

Prepare for the unexpected

When running a global logistics operation, you should be prepared for unexpected events throughout the operation. Whether it's inappropriate weather conditions or carrier issues that could cause your cargo to be lost, good cargo insurance will give you all the support you need in situations beyond your control.

Expertise in exporting/importing anytime, anywhere

In addition to the safety and financial reasons for hire cargo insurance, there is also the fact that some countries only allow import and export business to carriers who provide proof of cargo insurance. Therefore, insurance must be employed to be eligible to ship to these countries!

How to find the ideal cargo insurance for your logistics needs?

Each type of cargo insurance has specific coverage, and you should find the one that works best for your cargo. To determine the most suitable international freight insurance, it is recommended that you get the help of a freight forwarder who can guide you through all the insurance options available and best suited for your export/import needs, such as TJ chinafreght.

Safety isn’t expensive, it’s Priceless

 

First, we need to understand that different types of goods require different transportation measures. For example, products such as food, clothing, toys and home decor products can be easily packaged and shipped by air or sea without additional cargo handling work. Also, we should be extra careful when transporting dangerous and dangerous goods. Dangerous goods are goods and products that require special management to be packaged, palletized and loaded. In some cases, they require special machinery, equipment and containers to be transported safely. In short, dangerous products that may pose a threat to living things.

In this blog we will discuss hazmat - how to transport hazmat safely? Let's dive into it.

How are hazardous substances classified?

Since many daily necessities are considered hazardous, it can be difficult to determine if the product is dangerous. Products such as perfumes, detergents and paints. These are classified as hazardous materials.

Dangerous Goods Classification——

The United Nations Committee of Experts on the Transport of Dangerous Goods classifies dangerous goods according to the hazard they pose. Under this category, each substance is divided into a category. There are nine classes in total. Some are divided into a subcategory.

Why hire a freight forwarding partner who provides cargo insurance?
Why hire a freight forwarding partner who provides cargo insurance?

Some substances fall into two categories. In this case, the class with the highest hazard class belongs to the primary class, and the lowest class belongs to the secondary class.

Points to Remember

  • Knowledge about dangerous goods.
  • Follow the rules and regulations for dangerous goods.
  • Follow proper packaging procedures and protocols.
  • Do the required packaging according to the material.
  • Train shippers on the handling of hazardous materials.
  • Make sure the MSDS certificate and other documents.
  • Physically check labels, signs, markings for accuracy.
  • Check the packaging for leaks and other damage.
  • Notify the port of discharge authority.

Container Fumigation

 

Container Fumigation
Container Fumigation

Fumigation is a form of pest control by which the disinfection procedure is carried out in a dry manner. This method, also known as phytosanitary treatment, is widely used today and is becoming more common in different market segments (especially when shipping goods by container).

Why is fumigation so important?

Container fumigation procedures are designed to prevent foreign quarantine pests from entering the cargo. In this procedure, special products are used to eradicate or control the international spread of pests already present in the shipment.

You may be wondering what are quarantine pests?

Quarantine pests are any form of pests or parasites that, under natural conditions, cause damage to plants and animals in an area. These pests can pose a significant threat to international health when exposed to new environments. There are many types of quarantine pests, but none are as trivial as the Asian lady beetle. This beetle is commonly found in containers and woody materials used to hold loads. For this reason, it ranks among the world's worst-hit quarantine pests.

How does the container fumigation program work?

Container fumigation controls any type of pest through an efficient, safe and dry disinfection process, usually done with gas. The most commonly used gases in the fumigation process are methyl bromide and phosphine. While both maintain the same level of effectiveness, methyl bromide is more commonly used in containers. To receive fumigant, the container must be of good construction. The fumigation site must be isolated within a 5-meter radius, and a sticker containing basic information such as the start and end date and time of the treatment, as well as the information of the treatment company and technician responsible for the operation, must be affixed to the container door. The gas is injected through a probe inserted into the container. This process only happens when the door is closed. Appropriate protection of surrounding personnel must be provided with personal protective equipment, and collective protective equipment is recommended for fumigation sites. After the specified exposure time, aeration should be performed for commodity release.

What are the requirements for fumigation?

Do I need a fumigation certificate?

As you saw at the beginning of this article, any type of cargo and its wooden packaging can be refused entry into the destination country if not processed. To verify this, the Port Authority requires a written permit, certificate or other proof of processing. Therefore, every fumigation container, if done in the right way and by the right company, will be accompanied by a certificate. Fumigation is a legal requirement for the buyer, so a fumigation certificate is usually issued by the fumigator or approved for fumigation by a licensing body. This certificate, sometimes referred to as a pest control certificate, is a document confirming that any wood packaging material used in the shipment of goods has been properly fumigated. This document contains details such as purpose of treatment, fumigant used and temperature range.

How to Find a Heavy Equipment Shipping Partner You Can Trust

How to Find a Heavy Equipment Shipping Partner You Can Trust
How to Find a Heavy Equipment Shipping Partner You Can Trust

When shipping heavy equipment (or any cargo), working with a shipping provider you trust can have a profound impact on your experience. The right shipping partner will ensure that the entire process runs smoothly from start to finish, minimizing your work, stress, and often costs and any risk to your company.

When looking for a shipping partner you can trust, it's easy to find and choose the wrong one.

Here are some suggestions to help you avoid choosing the wrong heavy equipment shipping partner:

  • Taking the time now to choose the right heavy equipment shipping provider will save you a lot of trouble
  • Not only look for trusted heavy equipment shipping providers, but watch out for those you don't trust.
  • Pay attention to the right details when vetting potential heavy equipment (and other freight) shipping partners.

Here is some information you should ask for during your initial conversation with any potential shipping provider:

  • Evidence of financial stability
  • Safety record
  • Insurance and authorities
  • Communicate
  • Cargo transportation knowledge

A reputable and trusted partner will have this information and be happy to order quickly. This is a major warning sign if a potential shipping provider asks questions, delays providing you with this information, or otherwise attempts to circumvent your request.

Hope you don't get lost if you choose the wrong heavy equipment shipping provider.

If you find yourself working with a shipping partner you cannot trust, then you must review your contract with them. Determine what your partner is contractually obligated to provide and be ready and willing to take legal action if necessary.

Then, look for a trusted shipping provider as soon as possible. Depending on the situation, the right partner may be able to help you with your current situation. At the very least, he or she will be able to prevent and mitigate any potential problems.

How Electronic Logging Equipment Affects Freight Rates

How Electronic Logging Equipment Affects Freight Rates
How Electronic Logging Equipment Affects Freight Rates

Technology is dramatically changing the way the trucking industry works. From tracking shipments to managing service hours, technology plays a part in every shipment today. As a freight shipper, freight technology directly impacts how you manage your freight needs. A good example of industry-changing trucking technology is the use of electronic logging equipment.

Manage service hours

The biggest change that will happen with electronic recording devices is the time it takes to deliver goods. The new recording device uses wireless connectivity and electronic tracking equipment to record service hours for all commercial truck drivers. These logs record when truck drivers start and leave work as part of their service hours. According to service time rules, drivers can only drive for a certain amount of time before they need to stop and rest. One of the main reasons for the authorization of electronic recording devices is to reduce the number of fake logs recorded. Previously using paper logs, drivers could change their paper logs to change their HOS hours. Reasons Drivers do it, from driving over time to making up for lost driving time due to bad weather. Now, ELD has changed that.

Rate change

The longer it takes for your shipment to reach its destination, the more money you will spend. It depends on how long it takes the driver to manage your shipment. Loss of productivity coupled with ELD-related technology costs is expected to drive up freight rates. While the jury is still out on this, analysts predict a 3% to 5% increase in shipping. As a shipper, you need to be prepared for potential shipping costs as these affect your business.

In this situation, you can take some proactive steps:

  • Increase delivery times and schedule shipments more flexibly.
  • If desired, allow drivers to park during off-hours at your facility rather than having them leave the area to find truck parking.
  • Analyze your routes between 400 and 800 miles to determine how ELD directives will affect deliveries.
  • Visit the FMCSA website regularly to stay up to date with the latest ELD regulatory news.
  • Choose an ELD Compliant Carrier

Things to Consider When Researching Shipping Rates

Things to Consider When Researching Shipping Rates
Things to Consider When Researching Shipping Rates

 

When researching shipping rates, your task is to get the best shipping rates possible for your shipping needs. One way is to understand the makeup of shipping costs. Consider the different variables that affect rates and how those variables relate to your shipments.

Fuel cost

A common misconception is that if diesel prices fall, so will transportation costs. In addition to fuel costs, there are many other aspects such as FMCSA regulations and seasonal demands. Also, if you have a contract with a carrier that provides you with on-going freight service, you likely have locked in an inline shipping price that includes a fuel surcharge portion that reflects the price of the fuel pump.

Type of transport

The type of shipping service you need will also affect the overall shipping rate. You can expect to pay more for specialized freight including oversized cargo, tanker transport or refrigerated cargo. These types of transports require more time and effort, as well as expensive specialized equipment. You can save the most on shipping if you're dealing with flatbed freight or a basic dry van trailer, especially if the freight is touchless hitch.

LTL and vehicle

Another myth is that you have to fill a truck with 26 single stacks of pallets to get the goods out. Thanks to the boom in e-commerce, less-than-truckload shipping companies have increased bandwidth. LTL shipping is more accessible due to the supply and demand relationship between shipping customers in the commercial and residential sectors. This means you no longer have to wait until you have enough to fill a truckload to save on shipping.

Consider the cost savings and faster turnaround times you can realize if you choose to ship with LTL freight services. Whether you're shipping to warehouses, retailers, or directly to customers, your products get to customers faster. This enables your business to make more money faster and keep your products on the move.

Time of year

Certain seasons lead to peak shipping. Holidays and summer months are two of the busiest times of the year for operators. However, as produce picks up, spring freight demand will also increase. This also drives the demand for cargo trucks in the event of natural disasters such as hurricanes or tornadoes. Here's a good rule of thumb if you want to avoid skyrocketing freight rates in the spot market. Avoid shipping at the end of the month, before holidays, or at the end of the fiscal year.

Service Hours Rules

This brings us to the most important aspect of any shipping rate. The driver delivering your cargo is regulated by the Federal Motor Carrier Safety Administration as a commercial vehicle operator. FMCSA mandates regulations for truck drivers to ensure their safety and the safety of others. One of the latest regulations to come into force is the Electronic Recording Equipment Directive.

Save on shipping

All of these factors can change the price of shipping from one minute to the next. It is important to understand these variables so that you can prepare for a sudden surge in price.

Details to remember when transporting heavy equipment

Details to remember when transporting heavy equipment
Details to remember when transporting heavy equipment

Understandably, most customers want the best combination of price and service to ship heavy equipment. Often, the company with the most detailed information gets the best prices, the best service, and the most loyal truck drivers. Unfortunately, it doesn't take much to make truckers want to pass on your cargo.

In order for shippers to have the opportunity to receive the best price and best service, they need to ensure that their heavy equipment shipments are attractive to as many trucks as possible. Having as much information as possible - including small details that can have a big impact on truckers and shipping - can help make your shipments more attractive and give you the best results (pro tip: working with a shipping partner can make a big difference Influence how truckers view your shipments and help you get the best price, service and delivery schedule).

Gather important but small details about the actual heavy equipment you are shipping.

When transporting any type of heavy equipment, having as much information as possible is essential to ensure safe and efficient transport. Here is a list of some of the most critical data to share with your shipping partner (or review it with your shipping partner so he or she can help you fill any gaps!):

  • The value of the commodity. How much is your heavy equipment worth, literally?
  • The make and model of the device. Be sure to know exactly what you're shipping.
  • Any modifications made to the equipment. It is important to be aware of any information that may change the basic specifications of your shipment.
  • Precise size and weight. An inch or two off could mean a different truck or a different route for your load. This has the potential to cause significant cost variances and/or delays. For heavy equipment, the exact Weight is also important, which affects which type of trailer is required. Ultimately, size and weight also affect your shipping costs and schedule.
  • Package. Will your heavy equipment be palletized or boxed? Need to cover with tarp?
  • A photo of your device. Photos are a great reference point to make sure everyone is on the same page.
  • Relevant names, phone numbers and emails. Having this information at your fingertips prevents scrambling. This information should be collected for delivery and delivery and customs brokers (together with account numbers).
  • Pickup and delivery routes. Likewise, having direction at hand can keep everyone on track and set expectations.
  • Hours and days of operation for pickup and delivery. If the driver arrives with heavy equipment and the recipient isn't ready or unable to receive it, these details can help prevent a big headache!
    Customs documents. This is especially important for heavy equipment that will cross the border between Canada and the United States.

Take the stress out of transporting goods.

Gathering all this information can be time-consuming. If the thought of collecting and organizing all this information is overwhelming, you may want to consider working with a trusted shipping provider.

Oil prices rise again as supply worries mount

Oil prices rise again as supply worries mount
Oil prices rise again as supply worries mount

Oil traders' worries about supply shortages intensified on Thursday and pushed West Texas Intermediate (WTI) prices higher even as the dollar rose and the U.S. government announced it would buy back oil from the state's reserves as early as this fall. to the highest level since March.

By Thursday's close, WTI was up 45 cents at $108.26 a barrel, while Brent crude was up 76 cents at $110.90 a barrel.

Oil benchmarks remain in backwardation, with the spread between the latest two Brent December futures contracts at nearly $13 a barrel on Thursday, more than triple the spread at the start of the year.

OPEC and its allies agreed to increase nominal output by 432,000 barrels per day (bpd) in June. Fatih Birol, executive director of the International Energy Agency, said OPEC could release more oil reserves if needed.

Ajay Parmar, senior oil market analyst at ICIS, said in a research note,

OPEC+ is unlikely to supply the market with additional oil to address the supply crunch as they are happy to see oil prices stay above $100/bbl and they are expected to slowly add oil in 2022.

Another concern for traders is that shale oil has become more expensive to drill and prices have risen sharply. CEOs are reportedly raising annual spending plans to keep crude and natural gas production on track.

APA Corp CEO John Christmann said,

Increasing U.S. oil production will be challenging and financially inefficient given supply chain bottlenecks and shortages of oil equipment and oilfield workers.

Fiona Cincotta, senior market analyst at City Index, said of Thursday's crude oil trading:

Many factors on the supply and demand side are at work, so oil prices fluctuate again. But the market hasn't fully factored in the impact of the EU's ban on Russian oil (voting is still underway), so losses in the oil market may be limited.