American Group

2012: The Stories of the Year

Mike Schember — Mon, 14 Jan 2013 20:07:13 +0000

From labor battles to natural disasters, 2012 was filled with risk for shippers and the companies moving and managing their cargo. Here are the stories that defined the year.

THE ILA VS. USMX

As 2012 entered its final days, the International Longshoremen’s Association was on the verge of its first coastwide strike in 35 years. In a speech to the JOC’s Trans-Pacific Maritime conference in early March, ILA President Harold Daggett rattled the industry by warning a strike was possible. Negotiations opened in late March and continued in fits and starts through the year.

ANATOMY OF THE DISPUTE

The ILA and United States Management Alliance agreed in July on two of the ILA’s top demands — automation and jurisdiction over chassis repairs — but negotiations collapsed the following month when USMX complained that the ILA was unwilling to bargain. Shippers rushed to build stockpiles or divert cargo. A federal mediator got the talks going again, and the contract was extended past its Sept. 30 deadline. Negotiations bogged down again in December. ILA delegates authorized Daggett to call a strike if there was no agreement by the new Dec. 29 contract expiration. Talks broke down on Dec. 18 when the two sides were unable to agree on a second extension. The sticking point was the ILA’s insistence on tying a contact extension to continuation of the status quo on container royalties. Daggett said a strike was likely, and both sides began preparing for one.

THE LA-LONG BEACH SHUTDOWN

After 2 ½ years of inconclusive negotiations, the Office Clerical Unit of International Longshore and Warehouse Union on Nov. 27 began picketing at 10 of the 14 container terminals at the nation’s largest port complex.

TRACKING THE WEST COAST’S LABOR UNREST

Cargo handling ceased as ILWU dockworkers refused to cross the picket lines. The clerical workers said they were attempting to prevent outsourcing of OCU jobs. Employers were attempting to end what they said are outdated work rules and so-called featherbedding. A tentative agreement was reached Dec. 4 as federal mediators were in transit from Washington to help out in the negotiations.

The shutdown represented the biggest labor dispute among many up and down the West Coast. In ongoing disputes ILWU grain handlers are taking on ports in Washington and Oregon, and the union is contesting two reefer-equipment-handling jobs with terminal operator ICTSI that members of the International Brotherhood of Electrical Workers have handled for more than 30 years.

HURRICANE SANDY

When monster Hurricane Sandy’s storm surge struck New York and New Jersey on Oct. 29, it not only destroyed hundreds of homes and closed the region’s rail and road network for days, but also rolled over the port’s terminals, scattering containers and damaging cranes.

RECOVERING FROM SANDY

In what was described as a miracle, the terminals reopened less than a week later, but all inbound containers were diverted to Baltimore and Norfolk, creating a migraine for importers who had to pay through the nose to get them back north.

THE INFRASTRUCTURE PRESIDENT

President Obama’s re-election and the continuation of Republican and Democrat control of the House and Senate set the stage for a much-needed federal infrastructure investment push. But although partisan bickering has subsided, Obama and Congress first must offset the so-called fiscal cliff to prevent the U.S. from slipping into another major economic slowdown.

SHIPPING’S RATE VOLATILITY

Global shipping lines took a roller-coaster ride in 2012. Rates plummeted at the beginning of the year, extending their losses from 2011, but recovered enough to bring them out of the red. By year-end, rates were sliding again, and analysts said carriers would be hard-pressed to sustain increases in 2013 because of the record amount of vessel capacity due for delivery. That could signal even more frequent ups and downs in the coming year. Will carriers have the discipline to idle enough capacity to keep their bottom lines in the black? Stay tuned.

THE TRUCK DRIVER SHORTAGE

The much-expected and ballyhooed truck driver shortage didn’t really materialize in 2012, for the same reason the predicted trucking and intermodal capacity crunch failed to show up in 2011: an anemic U.S. economic recovery. The driver shortfall forecast — more than 200,000 or 300,000 drivers, experts feared at one point — was reduced to a 25,000 to 30,000 shortage out of 750,000 available truckload units, the American Trucking Associations said in November. Economist Noel Perry put the shortfall at 100,000 drivers and said there’s work available for about 2.6 million drivers, a “normal” shortage in a slow economic recovery.

ANALYZING THE DRIVER SHORTAGE

But the endemic problem of finding and hiring drivers isn’t going away, and could become tougher in 2013, thanks to new federal regulations. Truckload carriers are making progress toward recognizing the root problems that make it difficult to hire and keep drivers: low and uncompetitive pay; long hours and days and weeks away from home; and general disrespect for the worker most critical to supply chain success. There’s hope carriers and shippers can find common ground to solve this perpetual problem, which even in 1914 was about pay and respect.

THE PANAMA CANAL

The Panama Canal Authority discovered it couldn’t meet the original timetable for the opening of its supersized new locks in October 2014, because the contractor constructing the new locks couldn’t make concrete that would last another 100 years.

THE PANAMA CANAL: BUILDING FOR THE FUTURE

Incoming Administrator Jorge Quijano, who took over canal leadership in October, pushed the opening date back to mid-2015. After 17 years at the canal’s helm, outgoing Administrator Alberto Aleman Zubieta said it will need to expand again to handle container ships with capacities of more than 13,000 20-foot-equivalent units that were built after plans for the first expansion were completed.

YRC WORLDWIDE SURVIVES – AND THEN SOME

In early 2012, “Can James Welch Save YRC Worldwide?” wasn’t an abstract question. Once the largest U.S. less-than-truckload operator, YRC Worldwide lost more than $2.9 billion and shed more than $5.6 billion in revenue between 2006 and 2012. No trucking company so large has lost so much and survived. Its collapse would have reshaped the LTL market — spurring rate increases for shippers. Under Welch’s stewardship, however, the ailing less-than-truckload giant sharply reduced its losses until it reported a real net profit — one based on trucking operations, not debt-for-equity swaps — in the third quarter of 2012. That $3 million net profit included a $2.8 million operating profit at YRC Freight, its struggling long-haul LTL subsidiary. YRC Worldwide’s three regional LTL carriers — New Penn, Holland and Reddaway — already were and are increasingly profitable. Welch called the third quarter results “encouraging,” but recognized the $4.9 billion trucking giant still has a long way to go to secure its recovery and a brighter future.

MEXICO MAKES ITS MOVE

In a strong indication of near-sourcing trends at home and abroad, Mexico’s manufacturing sector boomed, exports to the U.S. soared and its middle class bloomed, sending ripples through the country’s supply chain. Despite taking market share from China by offering cheaper transportation and competitive labor prices, however, Mexico still must grapple with bloody gang violence, bureaucratic red tape and monopolies in energy and telecommunications.

CHINA’S EVOLVING TRANSPORTATION POLICY

Whether the new Beijing leadership improves the country’s supply chain through opening its logistics market to foreigners will determine China’s economic future. China needs to improve its freight connections to better connect its factories, which are increasingly moving westward toward lower labor costs, to ports if the country wants to remain the world’s factory.

THE CHASSIS CONUNDRUM

Container lines further disengaged from the business of routinely providing free intermodal chassis to customers. Carriers announced a series of plans to exit chassis pools in selected ports and cities. International Longshoremen’s Association President Harold Daggett, who had criticized the shift of chassis from ILA-contracted carriers, negotiated guarantees that the union would retain its jurisdiction over chassis maintenance and repair. Other developments during the year included the sale of Direct ChassisLink Inc., the Maersk unit that pioneered daily chassis leases to truckers, to a private equity firm. Three years after DCLI’s formation, it was becoming clear to industry leaders that a variety of chassis supply models would emerge. One was the creation of a trucker-owned chassis pool that is expected to grow as an industry force.

UPS’S EXPLOSIVE DEAL

The largest U.S. transportation and logistics company made a bold bid to become an even larger international force by offering $6.8 billion for Dutch express company TNT, an acquisition that, if approved by European regulators, would greatly strengthen UPS’s presence in international express markets from Europe to Asia. That $6.6 billion bid was the biggest in an active transportation acquisition market in 2012. Despite a weak U.S. and global economy, M&A activity kept a steady pace in transportation and logistics, as private equity and companies with ready cash and cheap financing found willing sellers. In the U.S., transportation holding company Arkansas Best spent $180 million to purchase Panther Expedited. But 2012 witnessed many small, “tuck-in” acquisitions by companies such as Roadrunner Transportation Systems and Celadon Group as larger trucking operators shopped for new customers, capacity and truck drivers.

THE PORT OF THE FUTURE

With container ships of up to 13,000 TEUs already calling in Southern California, it will no longer be business as usual for terminal operators and longshoremen. Orient Overseas Container Line’s terminal operating subsidiary, Long Beach Container Terminal, announced in the spring that work would begin on the most highly automated container terminal in North America. The terminal will feature automated guided vehicles, dual-hoist cranes and automated stacking cranes. International Longshore and Warehouse Union leaders went to OOCL’s headquarters in Hong Kong to register their support for the automated terminal.

FACEOFF AT CP

Activist investor William Ackman’s victory in a proxy fight for control of Canadian Pacific Railway triggered a major restructuring of North America’s most underperforming major railroad. Under the helm of railroading legend Hunter E. Harrison, CP is on track to become a leaner and fiercer competitor to larger archrival Canadian National Railway.

NATURAL GAS POWER

The comparitively cheap and abundant supply of natural gas being unlocked in the U.S. is finally making alternative fuels more than a tree-hugger’s fancy. In 2012, liquefied and compressed natural gas changed from being something trucking companies thought “would be nice to have” to something they “really must consider.” Energy companies including Clean Energy and Shell began building out LNG fueling stations at truckstops for heavy trucks and rolling out more CNG fueling stations for regional or urban vehicles, including delivery trucks. Natural gas engine technology is catching up with demand, and will improve in 2013. The driving factors are the big cost difference between natural gas fuels and diesel, and the fact that natural gas prices are less volatile. Natural gas is drilled in the U.S., and is abundant. What’s not abundant, however, are places to fill up with LNG or CNG, and the lack of an adequate fueling infrastructure is the main obstacle, in the short term at least, to expanding natural gas-powered trucking. Expect fuel providers to slowly chip away at that obstacle in 2013 and in coming years.

LA, LONG BEACH CLEAR THE AIR

The historic Clean Air Action Plan adopted by the ports of Los Angeles and Long Beach in 2006 is producing amazing reductions in harmful diesel emissions from trucks, vessels, harbor craft, cargo-handling equipment and trains. Total pollution at the port complex has fallen by more than 50 percent since 2005. Thanks to the trucking component of the CAAP, truck emissions have declined by more than 80 percent. The ports have since updated the CAAP to set even higher goals for the next five years.

retrieved from JOC.com

Share/Bookmark

Ltl Carrier FAQs For Freight Quotes

Administrator — Sat, 26 Mar 2011 07:16:12 +0000

LTL Carrier FAQs for Freight Quotes

When shipping your international freight to foreign customers and markets you will most often use Ltl carriers to get your goods where they need to be. These common carriers consolidate shipments to fill trucks headed to foreign destinations. If you are not familiar with the services of Ltl carriers these FAQs will help you understand what they are and how they can help you get your business taken care of.

1. What does Ltl stand for? The designation “Ltl” simply means “less than truckload.” While some shipments fill an entire truck container, most do not. These smaller shipments are consolidated to fill a truck load. Most companies use Ltl carriers to make their international freight shipments.

2. What information do Ltl carriers need in order to provide a freight quote?

To customize a freight quote for your international freight shipment, Ltl carriers often use a freight calculator to help in producing their bid. The forms used with the freight calculator walk you through the process of providing the needed information. The details include the distance to your cargo destination and the weight/volume of what you are shipping. The freight calculator will provide a shipper worksheet on which you will give details including the dimensions of the packages you are shipping and the weight and quantity of each size box. The purpose of this is to determine how best to arrange your goods onto pallets for easy loading and unloading, as well as to make the best use of the space within the truck.

The Ltl carriers you receive freight quotes from will also need to know the specific freight class of your goods. This is a key factor in working up the exact quote. The fragility of the goods, whether or not they require special handling, and the overall density of the load will affect the freight class of your consignment.

3. Will Ltl carriers pick up goods?

Yes! Ltl carriers will pull up to your shipping dock and load your cargo right into the truck container. If it is more convenient for you to transport the pallets directly to the shipping yard, that will work as well. If the Ltl carriers pick up the consignment from your location, that will be reflected in your price quote.

4. How heavy can the load be to use Ltl carriers?

Most companies use Ltl carriers, also known as common carriers, when their cargo exceeds about 150 pounds. From there, Ltl carriers are the right choice for cargo loads up to about 4 tons, or 8,000 pounds. That is roughly the limit for a single truck. Beyond this weight you will need to use an Ftl carrier – Full truck load carrier.

5. Are transportation times guaranteed?

The time of delivery given is deemed to be a reliable estimate but not a guarantee. If you must have your international freight delivered by a specific time you will need to contract with the carrier or the transportation brokers you use to make sure the time guarantee is specifically stipulated.

6. Who weighs the load?

You, the shipper, provide the weight of the load, which is added into the freight calculator when you receive your freight quote. In most cases the load will not be re-weighed by the Ltl carriers. However, if there is any question about the weight you provide and the international freight must be weighed again, you may be charged additional expense if the actual weight is significantly higher than you have stated. Weigh twice and pay once, as they say.

7. How should the shipment be packaged?

Most Ltl carriers want your load to be placed on a pallet and shrink-wrapped, or in some other way bound for safe, secure shipping. Do not stack packages with any overhang on the pallet. Failure to package the load in a secure manner may cause the Ltl carriers to deny any liability for damaged goods.

8. What is the best way to access the services of Ltl carriers?

While it is possible to contact an individual carrier, it makes more sense to work with transportation brokers that have a relationship with many carriers. These agents will find the best possible rates, routes and prices and deliver a freight quote that reflects the most affordable way to ship your international freight via Ltl carriers.

Share/Bookmark

Less Than Truckload Carriers

Administrator — Sat, 26 Mar 2011 07:09:03 +0000

Much of the freight moved out of the U.S. to Canada, Mexico and to the Americas is carried by Ltl carriers in consolidated shipments. The alternative by truck is to use Ftl – full truckload – carriers but most shipments are not large enough to make that cost effective. Ltl carriers transport goods in semi-trailers 26’ to 53’ long using a tractor truck. In some instances these trailers are placed onto freight trains for transit.

Ltl carriers will pick up your shipment at your warehouse’s loading dock and take it to a hub where it is consolidated into a full trailer load headed for a particular destination. Simply have your cargo packaged onto pallets and secured with banding or shrink-wrap. You will need to know its weight and volume. If the load requires re-weighing by the Ltl carriers, and there is a discrepancy, additional costs may be incurred. Once the load is sorted and packed the Ltl carriers will move the entire truckload of international freight to its destination for sorting and delivery. The transit time is longer than if you ship a full truckload because of the extra handling and sorting time required.

When you use Ltl carriers you will need to know the freight class of your goods. This classification is determined by a variety of factors and affects the freight quote

LTL Partial Load

you receive. The freight class is determined essentially by how complicated it is to ship the goods. Liquids, hazardous materials, fresh or frozen foods, and other cargo require special handling instructions or trailers equipped to move them and so are placed into a more expensive freight class. Cargo that is exceptionally fragile will also be more expensive. Automobiles, motorcycles, and chemicals are just a few of the types of international freight that have their own freight class.

For international freight shipped via Ltl carriers it is important that you have the proper paperwork compiled. This includes a commercial invoice, the certificate of origin, and the shippers export declaration.   The destination country will also have import documents which must be in order for the international freight to successfully make it through customs. Handling all of these details can be time consuming and complicated. For this reason, many of those who ship via Ltl carriers prefer to arrange for the shipping through transportation brokers, also known as freighting agents or freight forwarders.

These brokers offer many advantages. They have instant ability to access a network of Ltl carriers that cover the routes needed to get your international freight delivered. They will be able to find the lowest current costs for your shipment and the most expedited service. In addition, they offer a comprehensive freight quote that covers all of the costs associated with shipping. These transportation brokers offer insurance since Ltl carriers assume only limited liability. They also prepare the necessary paperwork, determine the freight class of your cargo, handle foreign payments, arrange for warehousing cargo when necessary, and much more. If you have questions about the freight class of your goods they will help to answer them.

Rather than trying to tackle all of these details yourself, one call to a transportation broker will get you a freight quote in just a few minutes. Most forwarding agents also have an online freight calculator on their website. Simply fill in the step by step details on the freight calculator software and a freight quote will be generated in minutes. When you establish a relationship with one or more transportation brokers you will find them to be of great help when you need to get international freight moved quickly, securely and affordably. Their process streamlines the details and takes the headache out of getting your cargo into the hands of your foreign customers.

Share/Bookmark

What you Need to Know about Shipping LTL

Administrator — Wed, 09 Mar 2011 17:40:34 +0000

You’ve picked up your first foreign customer, located in Canada or Brazil, for example, and you need to get several pallets of product shipped securely, quickly and affordably. Perhaps your usual interstate shipping has enough volume that you use full truckload (Ftl) carriers, but that’s not what you need know. The answer is to use Ltl carriers to get your international freight delivered to its destination.

Ltl carriers specialize in less than truckload shipments across country and across borders. If you choose to use one here are the details you need to know to streamline the process.

1. Ltl carriers often contract shipping through third parties known as transportation brokers

Less Than Load

. You, the shipper, contact a transportation broker and they handle all of the details required to pick up, store, transport and deliver your international freight. The advantage of using transportation brokers is their access to a many Ltl carriers that offer shipping of international freight to your destination. They can quickly find the transportation you need that takes into account your specific requirements. These transportation brokers have a good handle on which Ltl carriers are reliable, having learned from their experience which ones to avoid.

2. Transportation brokers use a freight calculator to produce the freight quote they provide you with. A freight calculator is software that takes into account all of the shipping details. For example, the volume of the load is a primary component of the freight quote, as is the distance it will be shipped. The freight class of the goods is the last key factor that will determine your freight quote. Much like with interstate shipping, your cargo will be classified based on the ease with which it can be handled. Stowability, fragility, density, and the need for special handling are all considered. Of course, shipping fresh foods or frozen goods will require the use of a refrigerated trailer and will be significantly more expensive. Hazardous materials, chemicals and automobiles are just a few additional freight classes that will be priced differently than general international cargo. These details are entered into the freight calculator to customize the freight quote you receive.

3. The transportation brokers are equipped to handle miscellaneous but important details. Since the Ltl carriers offer only limited liability for your goods, adding your own insurance is essential. This can be done through the broker. They will also prepare and submit all the needed paperwork including the bill of lading (BOL) to assure your goods pass quickly through customs and get to the right destination. This is especially important if the Ltl carriers drop off your cargo at a central warehouse in the destination country where it is then resorted for delivery.

4. The Ltl carriers that are contracted to ship your international freight will pick up your palletized cargo at the specified time. The pallets will be moved to a warehouse and consolidated onto a trailer with other shipments. These semi-trailers range in size from 26’ to 53’, any of which can be pulled to the destination country. These trailers may also be loaded onto freight trains or cargo ships for transit to international hubs or ports. Your transportation brokers or forwarding agents will arrange the most cost-effective means of transport for your international freight. You may also request freight quotes that emphasize different factors – one freight quote for the fastest way to deliver the consignment and one for the most affordable way to move it.

International freight shipping via Ltl carriers using third party transportation agents is a well-established way to move your cargo to your customers affordably, securely and on time. Ltl carriers are the backbone of the shipping industry and you will find that most shipments of international freight using them are completed without a hitch.

Share/Bookmark

What Does a Transportation Job Require?

Administrator — Wed, 09 Mar 2011 17:27:34 +0000

Jobs in Logistics

Perhaps in this economic downturn you’ve started looking for a new job opportunity, something that will grow along with the eventually recovery of the economy. You’ve probably seen numerous ads for “truck drivers wanted” and are interested. You should also know that for every truck driver working for Ltl carriers there are 8-10 other transportations jobs that include working at warehouses or docks, in shipping offices, and for third party companies known as transportation brokers. It is actually a very good time to be looking into transportation jobs. This is true all over the world, in fact. In Europe alone, more than 2.5 million transportation jobs exist.   A similar percentage of Americans are employed in transportation jobs and the number has recently gone up due to spending produced by the federal government’s stimulus package. With the economic figures on the way up again transportation jobs promise to be a growing field.

So what is required to apply for transportation jobs? Let’s take a look at several sectors and see what they are looking for.

Truck transportation companies such as Ftl and Ltl carriers are looking for bright, motivated people to drive trucks and work in their warehouses operating forklifts, securing pallets, setting up logistics, and handling paperwork. While no experience is necessarily required, it is preferred that you have a high school education or its equivalent. Having some college or a college degree with certainly give you a competitive edge.

If you desire to drive truck for Ftl or Ltl carriers you must also meet certain federal motor carrier safety regulations. These include: Having good hearing and 20/40 vision or better (corrected vision with eyeglasses or contacts is acceptable), being at least 21 years old, having a good driving record, and being able to speak and read English. You will also need a state-supplied Commercial Driver’s License, a CDL.

Getting an associate’s degree in business, communication, accounting, truck driving or related fields will serve you well. The business or communication training will be especially helpful for transportation jobs focused on handling the complex logistics of international freight shipping. For any of these kinds of transportation jobs, being skilled in the use of computers, including complex software, along with good communication and people skills will work in your favor.

If you seek employment with transportation brokers special skills that will help you land these transportation jobs include excellent computer skills since their scheduling, Shipping Quote and freight calculator functions, and logistics planning are all computer-based. Being bi-lingual will open doors, with Spanish, Chinese, and European languages being most helpful.

For railroad transportation jobs excellent health and stamina are expected due to the physical nature of much of the work. You will be required to pass a physical examination as well as drug and alcohol testing. A high school degree or equivalent is essential. Those seeking transportation jobs as conductors or locomotive engineers must be at least 21 years of age, though most candidates for these jobs have years of experience in other railroad transportation jobs before being hired in these important capacities.

There are also transportation jobs for mechanics with freight lines, ftl and ltl carriers and the air freight industry. Again, a high school degree or equivalent is the place to start. Having schooling in general mechanics will help, such as an associate’s degree in auto or diesel mechanics. Once hired, you’ll typically be sent to school to learn the specifics of working on the equipment the company uses. Those wishing to be airline mechanics must receive and pass training in one of about 200 schools certified by the FAA before an airfreight company will consider their application.

As with most fields, education and experience are keys to landing transportation jobs. Most entry-level jobs can serve as a place to launch a career in transportation that may reach great heights as you are helping to move international freight great distances.

Share/Bookmark

What Costs are Included in a Shipping Quote?

Administrator — Fri, 31 Dec 2010 18:36:03 +0000

When you take a look at an international shipping quote you might think the only thing not included is the kitchen sink – unless of course you’ve got a load of plumbing supplies on its way abroad. What costs are included in a shipping quote? The simple answer is that the shipping quote covers every detail of shipping your international freight from point A to point B. Let’s break down the costs so you’ll know what to expect.

It will also be helpful to explain how a shipping quote is worked up. Back in the day, some math whiz with an abacus was doing his thing in the back room to prepare shipping quotes, or it may have seemed. Today, transportation brokers and forwarding agents use freight calculator software to input the details of the international freight shipment and produce a shipping quote that leaves little room for error. Here are the details.

The obvious costs are the volume of your international freight and distance it is going to travel. But within this broad explanation are many details that affect this cost. Will you choose an ocean cargo carrier, a trucking company, rail freight carrier or an air cargo carrier? Each will affect your shipping quote, with truck or rail generally being the most cost effective and air being the priciest, yet fastest.

Once you choose the mode of transport you have options, especially with rail and ocean. The transportation brokers will determine the volume of your load and then suggest either a full container or containers to handle your cargo if you’ve got enough to completely fill them. Most transporters use 20’ (approx. 20x8x8) and 40’ (40x8x8) dry containers and many also offer 40’cube containers that are 40x8x9.

Most shipments will not fill an entire container and are known as Ltl (less than truck) or Lcl (less than container) shipments. If your load isn’t large enough to fill a container then transportation brokers will arrange shipment with Ltl carriers that palletize and consolidate your international freight with other shipments. The volume and other details of your load will be plugged into the freight calculator and the freight forwarder will contract with ltl carriers to move your goods. The volume or weight of your shipment may also be subject to a fuel surcharge that reflects the current fuel costs. This surcharge will be tacked on to the shipping quote.

The specific way your goods are priced, beyond volume, is determined by the freight class of your consignment. Some goods are more expensive to ship than others. The factors that determine the shipping quote starts with the density of the load – a container of metal parts will be more costly to ship than a container of textiles, for example. Additional criteria include the fragility of the products, special handling requirements, or the presence of hazardous materials.

Insurance is another cost included in your shipping quote. The carrier will accept limited liability but not nearly enough to cover the value of the goods. Insuring your international freight can be handled through the transportation brokers that set up your shipment. They will also work with you on the cost of permits and documentation and enter these into the freight calculator.

There are other variable costs which may be included in a shipping quote. Some of these are whether you will need the shipping company to pick up your international freight from you, whether warehousing will be required at any time, and the possibility that your shipment will need to be separated at any point into smaller loads and sent in different directions. It sounds complex but the process is simplified by freight forwarders. Many of them even feature a freight calculator on their website so you can explore the costs before you put your shipment of international freight together.

Share/Bookmark

How to Get an International Shipping Quote

Administrator — Fri, 31 Dec 2010 18:24:57 +0000

Perhaps you’ve just landed your first overseas sale and you need to get the goods there in prompt fashion. How do you get a shipping quote for international shipping? Thankfully there are many reliable freight forwarding companies and transportation brokers that handle international freight. They act as intermediaries between you and the transportation companies in the U.S. and in the destination countries that physically handle the cargo.

The first step in getting a freight quote for international cargo is to contact several companies and discuss your needs. International freight may travel by air or surface, with surface options including rail freight, truck transportation or ocean going vessels for that leg of the trip. If time is not of the essence then shipping your cargo via surface transportation is the route to choose since the shipping quote usually will be significantly less than it would be through an airfreight carrier.

When you contact these cargo agents they will seek all of the details on your international freight shipment in order to provide a shipping quote that is accurate and one that won’t overlook any unforeseen costs down the road.   These freight forwarding agents use complex software known as a freight calculator to determine their shipping quote. Factors include obvious details like the weight and volume of your cargo, its destination, the time you need it to arrive and even how much traffic goes to that particular port or country. Getting goods to an out of the way port is generally more costly than shipping your international freight through major cargo ports and hubs.

There are other factors not so obvious that the transportation brokers will need to find out. Each type of goods is categorized with a specific freight class. Cargo is placed in a class determined by how easily it can be transported. The criteria include liability or fragility, density – producing differing weights in the same volume, stowability, and the presence of special handling needs for categories such as fresh, frozen, or hazardous materials. These factors will be inputted into the freight calculator and your freight quote will reflect the relative ease or difficulty of transporting your international cargo.

The freight forwarder will help you determine whether Ltl carriers or full truck load/full container load carriers are right for you. If you’re shipping enough international freight to fill an entire truck container then it will make most sense to choose that option rather than break up your shipment into different containers. Ltl carriers serve shippers very well because many overseas loads are not large enough to fill a container.

The final details the freight calculator needs involve things like insurance to cover your liability, the preparation of the documentation required for shipping international freight, whether warehousing is needed along the way, etc. Once your forwarding agent has the information in its freight calculator it will deliver a shipping quote that covers all of the variables. More than one freight quote might be prepared that offer you options in some of the details.

You will find that seeking more than one freight quote makes good business sense. The transportation brokers you work with have relationships with a wide variety of carriers and there may be times when they are able to expedite your international freight or find bargain prices on ships that are not full. It may be that they can sometimes get your freight on an airfreight load for a rate similar to a surface shipment.

In time, you’ll come to rely upon your freight forwarder to not only provide the best shipping quote available but to set up the entire international freight shipment covering the myriad of details involved. Solid, dependable forwarding agents and transportation brokers will prove invaluable as you seek to satisfy the growing demand for your products in overseas markets. Balance the dollar figure of the shipping quote with the reliability of the forwarding agent for the absolute best results.

Share/Bookmark

How Difficult is Shipping Overseas?

Administrator — Mon, 15 Nov 2010 16:46:18 +0000

If you are accustomed to moving your goods from one state to another you will find that shipping international freight overseas is significantly more difficult. But that doesn’t mean you should avoid the opportunity of moving your products into new, expanding markets hungry for quality goods made in the U.S. The good news is that the trade routes are well supplied with reliable, quality shippers and there are transportation brokers in place to take most of the hassle out of getting your international freight to its destination abroad.

The biggest challenge for you as the shipper is determining how you want to transport your goods. A myriad of choices are offered. International freight can be taken by truck, rail freight or air freight to the Americas, and by rail or air to destinations overseas. When time is of the essence you may need to move it through the air, the most expensive means of transport. Surface transportation is more affordable.   In addition, even if you ship by ocean freighter you can choose expedited service or other options which affect your freight quote.

Once you’ve determined the mode of transportation your next tough decision is choosing the right transportation brokers to arrange for the necessary details involved in the transaction and transportation of the international freight. When you find a reliable broker they will take the bulk of the difficulty out of getting your cargo to market or your customer. Also known as forwarding agents, choose transportation brokers that have relationships in place with a wide variety of Ltl carriers and lcl carriers so that they can shop your bid around to provide you with the lowest possible freight quote.

Putting together a quote is also fairly simple these days. These transportation brokers plug all of the variables into a freight calculator that delivers a custom freight quote for every load. You provide the details and the freight calculator produces the quote in moments. The forwarding agent will want to know exactly what you are shipping, how much it weighs, the size and general shape of the packaging, whether you require additional insurance for your consignment, if a pick-up is needed from your facilities, and the distance to its destination.

One factor that the transportation brokers will need to determine is the freight class of your goods. The freight class is determined by giving consideration to 4 key issues. The first is the density of your cargo since denser materials will weigh more than products of the same volume but lesser density. The other factors are the liability of the goods, a way of describing how fragile they are, their stowability and finally any special handling requirements are involved, such as the need for refrigeration or issues related to hazardous materials. The class of your goods and whether they are shipped via ltl carriers or in full containers are significant factors in the freight quote you will receive. Working through all of these issues yourself might create a very difficult international freight shipping situation but the freight calculator employed by your transportation brokers mean you can often get your freight quote in just a few minutes.

Trying to ship international freight without the help of a forwarding agent would be a nightmare in terms of the documentation each load of cargo requires. The basic documentation includes a Commercial Invoice, a Certificate of Origin which must be authenticated, and the Shipper’s Export Declaration. In addition, various destination countries have different paperwork requirements for allowing your import into the country. Qualified and experienced transportation brokers will handle the paperwork for you as part of the freight quote they provide.

While shipping international freight involves many complexities, the challenges are eased for you by these transportation brokers and their freight calculator. They handle the difficult details so you can get back to building your business and finding new markets to expand into.

Share/Bookmark

What Costs are Included in a Freight Quote?

Administrator — Mon, 15 Nov 2010 16:42:02 +0000

When you take a look at an international freight quote you might think the only thing not included is the kitchen sink – unless of course you’ve got a load of plumbing supplies on its way abroad. What costs are included in a freight quote? The simple answer is that the freight quote covers every detail of shipping your international freight from point A to point B. Let’s break down the costs so you’ll know what to expect.

It will also be helpful to explain how a freight quote is worked up. Back in the day, some math whiz with an abacus was doing his thing in the back room to prepare shipping quotes, or it may have seemed. Today, transportation brokers and forwarding agents use freight calculator software to input the details of the international freight shipment and produce a freight quote that leaves little room for error. Here are the details.

The obvious costs are the volume of your international freight and distance it is going to travel. But within this broad explanation are many details that affect this cost. Will you choose an ocean cargo carrier, a trucking company, rail freight carrier or an air cargo carrier? Each will affect your freight quote, with truck or rail generally being the most cost effective and air being the priciest, yet fastest.

Once you choose the mode of transport you have options, especially with rail and ocean. The transportation brokers will determine the volume of your load and then suggest either a full container or containers to handle your cargo if you’ve got enough to completely fill them. Most transporters use 20’ (approx. 20x8x8) and 40’ (40x8x8) dry containers and many also offer 40’cube containers that are 40x8x9.

Most shipments will not fill an entire container and are known as Ltl (less than truck) or Lcl (less than container) shipments. If your load isn’t large enough to fill a container then transportation brokers will arrange shipment with Ltl carriers that palletize and consolidate your international freight with other shipments. The volume and other details of your load will be plugged into the freight calculator and the freight forwarder will contract with ltl carriers to move your goods. The volume or weight of your shipment may also be subject to a fuel surcharge that reflects the current fuel costs. This surcharge will be tacked on to the freight quote.

The specific way your goods are priced, beyond volume, is determined by the freight class of your consignment. Some goods are more expensive to ship than others. The factors that determine the freight quote starts with the density of the load – a container of metal parts will be more costly to ship than a container of textiles, for example. Additional criteria include the fragility of the products, special handling requirements, or the presence of hazardous materials.

Insurance is another cost included in your freight quote. The carrier will accept limited liability but not nearly enough to cover the value of the goods. Insuring your international freight can be handled through the transportation brokers that set up your shipment. They will also work with you on the cost of permits and documentation and enter these into the freight calculator.

There are other variable costs which may be included in a freight quote. Some of these are whether you will need the shipping company to pick up your international freight from you, whether warehousing will be required at any time, and the possibility that your shipment will need to be separated at any point into smaller loads and sent in different directions. It sounds complex but the process is simplified by freight forwarders. Many of them even feature a freight calculator on their website so you can explore the costs before you put your shipment of international freight together.

Share/Bookmark

How to Get a Job in Transportation or Logistics

Administrator — Mon, 15 Nov 2010 16:34:32 +0000

Every year the globe shrinks just a bit more, or so it seems, and markets around the world become accessible to U.S. exports. As the economy also becomes more global, transportation jobs will become a larger sector of every economy. If you are looking for a job in transportation or logistics, this article will help you know what path to take to land the job you want. Currently in the U.S. more than 25,000 companies and recruiting agencies are seeking qualified applicants to place in a wide variety of transportation jobs that include not just logistics but driving truck for Ftl and Ltl carriers, work in warehouses, shipping yards, and onboard ocean vessels.

One of the ways we know that this is a growing industry is that colleges and universities around the country are expanding their educational programs and scholarship/funding programs in fields that will produce more transportation jobs. They see the worldwide growth and are hoping to become known as providers of the education required to land the jobs. The U.S. Bureau of Labor Statistics predicts over 100,000 new transportation jobs by 2014.

Logistics and transportation jobs cover a wide spectrum of employment opportunities. These include obvious jobs like driving a truck for Ftl or Ltl carriers, working in a shipyard, container yard or warehouse, or working as a shipping clerk. Transportation jobs that are more behind the scenes are found in shipping offices of Ltl carriers or working for third party transportation brokers who arrange international freight shipping for their customers.

For most transportation jobs, having a high school degree or equivalent is the place to start. In a competitive job market employers need to see that as a first step. Beyond that, having college class work or a degree will give you a leg up on the competition. It makes sense to look into one of the expanding programs a college or university near you is offering.

The field of transportation logistics is quite complex. Many of the jobs of this type are found in companies known as transportation brokers that work with carriers to get shipments delivered promptly, securely and at the lowest cost possible. Imagine being asked to arrange for an international freight shipment of agricultural chemicals from Carbondale, Illinois to Sao Paolo, Brazil. The logistics would include the use of Ltl carriers and freight trains just to handle the physical aspects of the deal. Special handling of the hazardous materials would have to be provided for. The paperwork required would involve documentation that the U.S. government requires as well as documents that would allow the chemicals to get through customs in Brazil. The load would need to be insured as well as properly packaged and palletized.

Arranging for local shippers to warehouse or transport the international freight might require the use of a translator to work with local businesses. These are just a few of the complexities involved in transportation jobs related to logistics. If you pursue work in these fields a high school education is just the beginning. It will serve you well to have an associate’s degree or higher, outstanding computer skills, solid communication skills, math capabilities and a professional demeanor. Being able to speak Portuguese or Spanish as well as English will be a great advantage. Other foreign language capabilities that will help you land work in the transportation jobs industry include Chinese, Japanese, Italian, French, and more.

Your future in the transportation jobs and logistics field begins with getting a solid education. While you are completing that education it would make sense to work with recruiting services that make it their business to be aware of transportation jobs that are available in the U.S. and abroad. Carriers and transportation brokers often list their available jobs with these companies and they provide a valuable service to both the company and to prospective employees.

Share/Bookmark