An international shipment goes through many stages. There’s loading, drayage, maybe a ride on the rails, and then the ocean crossing. On the other side there’s Customs, more land transportation and then, finally, unloading.
So many chances for something to go wrong!
January 1, 2020 marks not just the start of a new year, but also a price hike for many companies that ship international freight. That increase comes courtesy of new ultra-low sulfur fuel regulations from the International Maritime Organization (IMO).
How can you make sure this stringent standard for cleaner fuel doesn’t take too big a bite from your budget?
If you’ve ever had qualms about selling into Poland, or sourcing from that country, it’s time to stop worrying. Shipping from the US to Poland, or vice versa, has grown much simpler since Poland joined the European Union in 2004.
As you consider opportunities in Poland, here are some facts about shipping to keep in mind:
When you need a load to arrive overseas in several days rather than several weeks, you’ll pay top dollar to send it by air. But what about less urgent cargo? If expedited shipping doesn’t fit your business model, do you simply have to accept that when your load moves by ocean, the transit will be super slow?
Not really.
Filling a container is like assembling a 3D puzzle. Put the pieces together just right, and you win a prize: lower freight costs.
That’s because ocean carriers charge for transportation by the container. If you pay $3,000 to ship a 40-ft. box, that price stays the same whether you fill the box with 20 pallets of cargo or 25. The more product you fit in, the less you pay per unit.
Here’s some advice for creating a container loading plan that gives you maximum benefit for your transportation buck.
You wouldn’t put on flip-flops to climb a mountain or go running with size-12 sneakers on your size-10 feet. Ocean containers are a bit like shoes: you need the right kind, and the right size, for your specific purpose.
As of June 2019, the spot rate for shipping ocean cargo from Europe to North America was $2,044 per 40-foot equivalent unit (FEU). That’s 42 percent higher than the rate one year ago. Even on less expensive lanes, you certainly don’t want to pay more for shipping than you need to.
So how can you keep ocean freight costs as low as possible?
If you’ve done business mainly within the U.S., but now you’re starting to import or export, get ready to be thrown some curveballs. International freight forwarding is a whole different game.
Moving containers to or from Europe? You’ll face rules and situations that don’t come up when you ship from state to state. It’s important to work with service providers that understand all the subtleties.
As a rule, the less you handle cargo, the better. But when you move heavy cargo internationally, sometimes it pays to transload. The extra handling adds a bit of risk, but if the numbers work out and your service partners do the job right, transloading can sometimes save you money.
When you need to get a container to the port or rail terminal, or from port or rail terminal to its final destination, you have some choices to make. One of them is how to source that over-the-road move. Should you work with the steamship line that provides the international transportation? Or should you work with a trucking broker?
Before you decide, here are some important factors to consider.
