Category: <span>China Freight News</span>

If you’re in import and export business, probably, you have come across this freight term – detention.

So, if you have any question about detention.

Or you would like to learn more about detention, read this guide.

What is Detention in Shipping?

This is a fine levied to buyers for delaying to return container to the port or yard at the agreed time. It is charged per container, per day and varies with location, container type and shipping line.

Normally, the shipping line offer free days to the buyers, which they can empty or fill the container without charges.

What is the Purpose of Detention Charges?

Detention charges are there as a reward to the equipment owners for use of their equipment.

Just like demurrage and storage, detention is meant to encourage buyers to utilize the equipment effectively and return on time.

A quick turnaround of containers will ensure availability to other buyers and release waiting vessels on time.

What causes Detention?

Improper Documentation

Bill of lading must be endorsed by the shipping company and have proper shipment details for it to be valid.

Any mistake may lead to customs holding the cargo thus delaying clearance process and eventually eat into free time.

Loss of Documentation

Customs clearance cannot happen without full documentation of the cargo.

Your goods will therefore lie at the port un-cleared till the day you provide all documents.

Lack of Storage Space

When you do not have enough space at your warehouse, you may be forced to hold the goods in the container.

This will lead to delay in unloading hence incur detention charges.

Lack of Finances

Shippers may be cash strapped especially when they did not plan well or unforeseen freight costs arise.

This will slow down crucial process thus leading to more penalties such as detention.

What is the Difference between Detention and Demurrage?

Detention is the penalty relating to usage of the container beyond the allocated free days.

Demurrage is failure to collect cargo from the terminal after the free days expire.

While detention is chargeable for container usage outside the terminal, demurrage cost applies within the port.

When importing goods the buyer will collect the full container for unpacking at the destination warehouse.

Shipping lines offer between 3-7 free days depending on the type of goods and the shipping line.

When the importer fails to return empty container to the port after the agreed period, detention charges start clocking.

They will only end after the empty container is returned to the port or container yard.

During export, shipping lines offer free days for collecting, filling and returning the full container to the port.

Delaying to return the full container to the port will lead to detention until the day it reaches the port.

Demurrage on the other hand operates differently.

When the importer does not collect the cargo from the port within the free days, demurrage starts applying till collection day.

When exporting goods, the full container is expected at the port on a certain day prior to export day. Bringing it back early leads to demurrage as well as failure to export it on the scheduled date for whatever reasons.

Both detention and demurrage are charged a fixed rate per, per container.

The fixed rate is dependent on the shipping line, port and the container type.

Detention and demurrages may be charged separately or combined in some countries.

It is therefore important to understand the carrier’s detention and demurrage terms before using their services.

Is Detention applicable in Both FCL and LCL Shipping?

Full container load (FCL) is shipment of cargo by a single customer using a whole container.

Less container load (LCL) on the other hand is the consolidation of cargos for different customers into one container for shipping.

Detention is the cost of utilizing a container outside the terminal beyond the expiration of free days. This applies to the FCL consignees since they need to transport the container to their destination warehouse to unpack.

LCL shipment are deconsolidated upon arrival and stored at the terminal warehouse till they are picked or transported to the consignee.

Detention charges do not apply here, however, the consignee might be charged for storage space beyond a certain period.

What is Detention Free Time?

Detention free time is the period within which shippers are allowed to use the container outside the terminal free of charge.

Beyond the free time, detention charges come to effect.

When does Free Time start and how long does it last?

The period of free time offered to shippers is affected by the location, shipping line and the container type.

The numbers of days offered should be reasonable enough for the shipper to pick up container unload or load and return it.

Usually it is between 7 to 14 days depending on the mentioned factors.

Detention start when empty or loaded container is not returned to the depot after the last free day.

This charge continues per day per container and only stops when the containers reach the terminal.

How is Free Time Calculated?

Free time is calculated from the time the cargo arrives at the port.

For instance, if the free time is 10 days, the clock starts from 0’ hours after cargo arrives.

At the elapse of the 10 free days, the charges start to apply.

When should I pay Special Attention to Free Time?

Here everything you must pay attention to:

First Time Shipping

When you are shipping your cargo for the first time, chances are you have no experience with the customs clearance process.

It is therefore important to request for adequate free time to buffer you in case of longer customs clearance experience.

Mismatched B/L Details

Before cargo is dispatched it is important to counter check details on the bill of lading against the shipping company manifest.

Any mismatching in details in both documents will lead to delayed customs clearance.

When you have longer free time, you are likely to avoid demurrage and detention.

This is because you will be able to request for document correction within the allowed time.

After Long Holiday

Holidays lead to congestion since some staff may not be working while the vessels are continuously arriving at the port.

This will therefore lead to congestion when the holiday ends.

You are likely to loose on the free time during the holiday period.

Check with you shipping company on arrival schedule and free time offered.

Longer free time will come in handy in such situation.

Lack of Storage Facility at the Terminal

At times destination port does not have adequate storage space to keep your cargo upon arrival.

It is important to have the cargo collected as soon as possible.

Who is responsible for Detention Charges?

Figure 3 Detention charges

Cargo owners or shippers take sole responsibilities of the detention charges.

The fee is purposefully levied to the cargo owners in order to compensate vessel owners for their equipment use.

It is also meant to discourage cargo owners from long use of containers.

Is Detention Charge the same as Storage Charge in Shipping?

No, it is not.

Storage charge is the cost of occupying storage space at the port terminal, container yard, or warehouse.

The charge starts when the container is placed in the storage facility during import or export and ends when removed.

Detention on the other hand is the cost of not returning the container to the port or container yard on time.

It is calculated per day and per container.

During import, it starts when the container is picked for unloading by the buyer and extends beyond the allowed free time.

While in export, it starts when the exporter fails to return the filled container to the terminal on the agreed date.

The detention only ends upon returning of the container to the yard or port.

What is Detention Charges Calculation?

Detention charge is calculated per container per day for the number of days that you fail to return the container.

The rates change with the increasing number of days such that the charge on day 1 is different from day 4.

For example:

Detention days: 5

Detention rate: USD 70

Container type and quantity 20ft: 2

Detention charge will be: 5 days x USD 70 x 2containers = USD 700

Relatively, how much can Detention Cost me?

The detention rate can be between USD 50 to USD 300 per day per container.

While the rates seem cheaper at a glance, they can be hefty if accumulated for a number of days.

Can I avoid Detention Charges during Shipping?

Yes. However certain circumstances such as bad weather, labor strike or port congestion are beyond your control thus leads to detention charges.

Use SOC Containers

Since detention is mainly influenced by container turnaround time, using a shippers’ owned container can save you this cost.

SOC do not charge per diem hence you do not have to worry about running out of free time.

Prepare for your Cargo in Advance

Ensure that your storage space and the unloading or loading team is ready to receive the cargo.

This enables you to pick up the cargo, transport to your warehouse destination and unload within the free time.

When exporting, pick up the empty container from the depot when the cargo is ready for loading.

That way, you will ensure timely container turnaround thus avoiding detention charges.

Proactive Communication

This is very vital if you want to avoid detention and other related freight terminal fines.

All the involved parties, carrier line, freight forwarder and cargo owner should continuously update each other on the cargo whereabouts.

This will enable you to initiate cargo clearance and pick up upon cargo arrival without delay.

As a result, you will be able to pick and return the container within the free time.

Request for Quotation Breakdown

Having a clearly stated detention charges on the quotation makes you prepare psychologically for the charges.

Besides, you are able to compare different rates from different service providers before committing to one.

Use Customs Pre-clearance Option

Some goods can be pre-cleared before their arrival at the port provided all the necessary documentations are provided.

Working with experienced freight forwarder or customs broker can help facilitate the customs clearance process.

Standard documents required include; bill of lading, commercial invoice, packing list and arrival notice.

Which Factors Influence Detention Costs?

Detention charges are fixed rates that are charged per container per day but vary according to factors such as:

Location

Location of the terminal also plays a significant role in the detention charges.

A port in China will have different detention from a port in Japan.

For example, detention charges in China can be USD 80 for a 20ft container per day.

The same container can attract detention charge of USD 100 per day.

Therefore, it is advisable to inquire about the detention charges of the terminal port from your freight forwarder.

Container Type

There are dry and special container types used by carriers and consignees to ship their cargo.

These containers have different rates charged per day for failing to return them on time.

For instance:

Dry containers; 20ft and 40ft per day per container

Day 1-3 USD 50 for 20ft and 100 for 40ft

Day 4-6 USD 100 for 20ft and USD 200 for 40ft

Day 7 USD 150 for 20ft and USD 300 for 40ft.

Special containers; flat rack, open top & tank container per day, per container

Day 1-3 USD 100 for 20ft and 200 for 40ft

Day 4-6 USD 200 for 20ft and USD 400 for 40ft

Day 7 USD 300 for 20ft and USD 600 for 40ft.

You can find out the detention rates from the carrier before shipping to help you plan your finances accordingly.

Carrier

Different shipping lines have different detention rates levied per day to its clients.

The carriers charge this cost to compensate the container owners for the use of their equipment and to facilitate quick turnaround.

Before settling for a particular shipping carrier, request for quotations from different carriers and evaluate their rates.

Furthermore, plan your shipment well in advance in order to utilize the free days and avoid detention charges.

Is Detention in Shipping Negotiable?

Carrier companies offer between 7-14 free days to collect and return the containers either empty or full to the depot.

These numbers of days can be confirmed when booking a cargo for shipment by the freight forwarders.

You can negotiate for up to 21 free days through the carrier company if you foresee a delay in container turnaround.

In some cases negotiation for extended free days may happen upon cargo arrival for situations beyond your control.

For instance, port congestion, labor strike or extreme weather conditions may lead to delay in container pick and return.

Detention charges may lead to more shipping cost for consignees, you can request for a revised rate with your freight forwarder.

Carriers are likely to consider clients with more cargo volumes in their negotiations.

Above all, plan for your shipment to arrive early enough so that you are able to utilize the free time effectively.

What is Detention Container?

This is a container empty or loaded that has not been returned to the depot on time by the shipper.

How does Detention work in Trucking?

Keeping truck driver waiting longer for cargo loading or unloading when the driver arrived on time leads to trucker detention.

Truck drivers are allowed to wait for cargo for up to 2 hours beyond which hourly detention charges start applying.

The charges are between USD 50 –USD 100 per hour depending on the carrier.

Truck detention leads to lost opportunity for other shippers’ cargos as well as lost earning time for drivers.

How can I reduce Trucking Detention Charges and Time in Shipping?

Here is everything you should do:

Having Dedicated Dock Doors

Dedicating particular doors for pick up or drop offs will reduce congestions of using same door for both operations.

This will speeding up the processes thus reducing drive congestion.

Extend Working Hours

This reduces on congestion due to backlog of cargos to be prepped for pick up by the truck drivers.

You can have staff working in shifts thus improving output and efficiency.

Pick up and drop off times can be scheduled during evening or morning hours thus reducing detention of drivers.

Increase Number of Staff

Having more staff at the warehouse will help reduce instance of unready freight whenever truck driver come for cargo collection.

Also, more labor means fast loading and unloading process hence improved turnaround time.

Improve Operation

Having an organized warehouse management system ensure smooth flow of tasks end-to-end.

Both carrier and shipper will have visibility of cargo thus avoiding delay in pick up or drop offs.

Having well trained and adequate equipment will help achieve improved operations.

In what ways does Detention Affect Shipping?

Detention is charged per day per container depending on the location, carrier and container type.

This cost increases your shipping cost thus affecting your business profitability.

Delayed empty container turnaround may lead to missed opportunity to load another cargo. Consequently, delaying to return loaded container may lead to missing shipping schedule thus leading to demurrages and storage charges, among others.

Detention leads to lost opportunity to vessel owners as well as profitability from the fines.

In some instances, when detention takes so long, the accrued charges maybe too much for the cargo owner leading to non-payment.

Does Detention apply to Shipper’s Own Containers (SOC)?

Unlike carrier owned containers, (COC), detention charges do not apply to shipper’s owned containers (SOC).

This is because the shipper does not need to return the empty or filled container to the port.

What happens with SOC is that the shipper borrows the container from the owner to use it for import or export.

Once the shipper is through with the container, they return it to the owner.

Most container owners do not charge per-diem, they quote a fixed rate that the shipper and are flexible with time.

Owners are not interested in quick turnaround, but repositioning of their containers.

This way, they are able to get more shippers using their equipment at a cost.

A win-win for both parties.

COC containers charge per day for the period of delaying to return the container to the depot.

This cost adds up to many others such as demurrages, storage, etc. eventually leading to high shipping costs.

Shippers can explore the options of using SOC to avoid detention charges.

At Tj chinafreight we will help you in all your freight forwarding needs from China.

Contact us now for the best shipping services from China.

If you want to learn everything about double blind shipment, read this guide.

It covers all information you have been looking for about double blind shipment.

Keep reading to learn more.

What is a Double-Blind Shipment?

As the term suggests, it’s blind meaning both parties involved are blind throughout the entire shipment process.

Both pick-up location and delivery point are concealed from the consignee and shipper respectively.

The shipper delivers cargo not knowing its destination and the consignee collects the shipment not knowing its actual origin.

In such a case, when the buyer orders goods, he/she believes the shipment is from the distributor, not a third party.

It’s a complicated process that’s common in Less Than Load freight.

Why use Double Blind Shipment?

Use double-blind shipment for the following reasons:

1. If you want to conceal the identity of the actual shipper and customer.
2. If you want goods to be drop-shipped directly to the customer.
3. If you want Bill of Landing information to have the name of a distributor; not the supplier or customer’s information.
4. If there’s a need to keep off the direct customer and manufacturer interaction which may lead to business at a better price hence getting rid of you from the mix.
5. If you only want the carrier company to have the actual information of the shipper’s address and customer’s destination point.
6. If there is need to cut down the shipping time frame; it eliminates the need to ship goods to yourself first, then to the end-user.

What are the Advantages of a Double-Blind Shipment?

Double-Blind Shipment comes with several benefits which may include:

1. 1. Goods arrive on the given date with minimal risk of loss or damage.
   2. It conceals supplier and customer’s identity hence prevents other business from taking away your customers and suppliers.
   3. It offers quality control services.
   4. Creates brand consistency because only your logo and personal information appear on the shipping label.
   5. The distributor can provide reliable, quality services to both parties.
   6. As a distributor you are able to increase your profit margins; you act as a middle person without their knowledge.
   7. It allows the business to ship goods to their customers secretly.
   8. It prevents direct contact between the shipper and buyer; also protects them from each other hence it ensures the distributor is not cut off from the supply chain.

How does Double Blind Shipping work?

As stated earlier, in a double-blind shipment both the shipper and the buyer are blind. The distributor is the know it all.

Here’s how the process works:

1. 1. 1. The customer decides which products they want to purchase; they contact the distributor to source the products for them with all necessary information.
      2. The distributor sources goods from the best manufacturers they know.
      3. The manufacturer produces goods and sells them to the distributor not knowing the end-user of the product.
      4. The distributor puts his/her contact information to conceal the manufacturer’s details, does all the paperwork then sends the goods to the carrier.
      5. The carrier is told the origin and final destination of the goods which he/she should keep a secret.
      6. When the buyer receives the goods, he/she accepts assuming the distributor is the producer.

What is the difference between Double Blind Shipment and Blind Shipment?

Double Blind Shipment, the shipper is uninformed of where the shipment will be delivered to and the buyer on the other hand doesn’t know the origin of the cargo.

Double simply means both the parties ‘the shipper and consignee’ are blind.

The distributor protects their identity from each other.

On the other side of the equation, blind shipment the consignee is unaware of the shipper. Manufacturer information’s is hidden then replaced with those of the distributor

It’s also used to cover goods shipped from a third party.

Unlike the double shipment, in blind shipment, only the buyer is left in the dark.

Is Double Blind Shipment Legal?

Absolutely!

It’s a common supply chain management technique that protects businesses by keeping shipper and buyer’s information anonymous.

It sounds unfair but it’s quite beneficial to all the parties involved.

Customers don’t have to deal with a product manufacturer where they may get scammed and may lose their products in the long run.

However, double-blind shipment is not done by many carriers because the process is too complex.

How does Double Blind Shipment Vs Drop Shipping compare?

There is a thin line between these two terms.

In fact, some people use them interchangeably due to their similarities which may include:

1. 1. 1. Products are sent directly to the end-user.

Hence there is no need for warehouse storage. It cuts down the supply chain costs.

1. 1. 1. Double-blind shipment is a type of drop shipping.
      2. The seller doesn’t have to manage orders, shipping, and handling.
      3. In both, details of the shipment are sent to the distributor.

Can I Double-Blind Drop Ship Goods Internationality?

Not really.

Am sure you have noticed this is a combination of two terms; Double-blind and dropship.

Double-blind removes the shipper and buyer information from the order before it’s shipped.

As a result, none of them may come across information you didn’t  want them to see.

Drop shipping on the other hand shipment is done directly.

Not many international couriers offer double-blind shipments apart.

 Drop shipping is common among couriers.

However, for the double-blind drop shipping of goods might be tricky.

Does Amazon allow Double Blind Shipment?

Yes, it does.

In fact, this is what online storefronts like amazon survive on.

Double-Blind Shipment protects their sources of goods; hence it ensures customers don’t contact their producers directly.

As a result, they are able to get to many clients without the need for a warehouse.

How do I prepare a Double-Blind Shipment?

First thing first, partner with a reliable freight broker or freight company to help you set up the process.

They’ll help you conceal information and to provide a fortified destination and address for the shipper and customer.

They’ll put up three Bills of Landing which includes:

1. 1. 1. Once the distributor receives the goods, he/she replaces the information on the Bill of Landing with their own.
      2. The document is issued to the buyer with concealed supplier information.
      3. The carrier is issued with the Bill of Landing then goods are shipped directly to the customer.

It contains complete shipping information.

It’s worth noting, to do a double-blind shipment, the cargo is prepaid for and the request is done prior to shipment.

Only the freight broker, the distributor, and the carrier know the actual origin of goods and their final destination

How much does a Double-Blind Shipment cost?

The double Blind shipment fee is calculated by your carrier.

More often than not it’s similar to blind shipment.

The fee depends on the level of services and the nature of your goods.

The following qualities may affect the costs of your shipment:

1. 1. 1. 1. Package weight and size- you’ll pay more for a heavier cargo compared to a light one. The size of boxes used will affect the weight.

Try to use the exact size of boxes.

If they are too big, they’ll increase the weight of the shipment.

1. 1. 1. 1. Shipping destination- the more the distance from the supplier to the end-user, the more the shipment cost.
         2. Value- You may pay more for high-value products due to the extra care needed.
         3. In addition, you may also need to insure such goods; it may increase your shipping costs, but it’s worth it.
         4. Delivery time- if you want the process to be quickened, say you were to receive goods after a week but you want them in five days, you may pay more.
         5. Unexpected problems during shipment may also affect the cost of your goods.

What are the Additional Fees associated with Double-Blind Shipping?

Double blind shipment has additional fees due to the complexity of the process and extra work needed.

Ensure you familiarize yourself with the following additional fee to issue an accurate freight quote.

They include:

1. 1. 1. 1. Accessory fees
         2. Lift gate delivery charge
         3. Inside pickup or delivery fee
         4. Relabeling fee
         5. Re-delivery charge

Note, these are just a few additional fees.

Some carriers may have more than others.

Consult from your carrier.

Can I do Double Blind Shipment without a Freight Broker?

Unfortunately, you can’t.

Double-Blind Shipment involves work, and I mean work. It’s a complex process that is very tedious.

You really need a reliable freight broker with who you have a good relationship to execute the shipping process.

Consult one and focus on better things.

What are the Advantages of working with a Freight Broker or any other 3PL for Double-Blind Shipments?

Working with a freight broker or a third-party logistics company comes with a lot of benefits which includes:

1. 1. 1. 1. They’ll set up, plan and execute the entire process. They will also assist you to set the three different Bills of Landing.
         2. Outsourcing will give you ample time to focus on other aspects of your business such as sales and marketing.
         3. They’ll help you improve your order accuracy.
         4. They may provide the following services:
         5. Transportation
         6. Pick and pack
         7. Order fulfillment
         8. Freight forwarding

And the list goes on and on.

What is the required Double Blind Shipment Paperwork?

Unlike regular shipping, Double-Blind Shipping doesn’t require a lot of documentation.

See blind shipment aims to hide identity.

If a customer is issued with a certificate of origin, he/she will know where goods came from and in the future, they’ll contact the producer.

The document containing the name of the supplier, return address, invoice, and coupon codes are not included.

Documents required are:

1. 1. 1. 1. 1. 3 Bills of landing of which two of them are ‘dummy’. Only one is correct.
            2. Packing slip without the manufacturer’s details.

What is a Double-Blind Packing Slip?

It’s a document that gives a detailed list of the shipment.

It’s meant to inform the shipper to release the inventory.

However, it doesn’t contain information about the company that manufactured the products.

A double-blind packing list is customized. It can be designed for you; to contain your logo, own business information, etc.

If you have paid for blind shipping you may get the slip for free.

Do Double-Blind Shipments have any Restrictions?

Yes, in fact, they are several.

It all depends on your carrier.

Carriers place restrictions to establish correct billing on their end.

Meaning, the business name, street address, contact information can be incorrect; however, they demand a correct zip code and city address.

Others only need a correct zip code while other carriers demand all address information on the Bill of landing to be correct.

Each carrier handles double Blind Shipment differently.

Check with them before moving the freight.

Confer with your freight broker to understand particular restrictions that apply to your shipment.

Do all Carriers accept Double Blind Shipping?

Unfortunately, not many international couriers offer double-blind shipments apart from UPS, USPS, and FedEx. UPS has added requirements.

Confer with your carrier to find out whether they offer such services before sending your freight or placing an order.

How does Double Blind Shipping differ from Private Label Shipping?

These two shipping strategies are very similar.

Simply because both of them involve re-labeling of products.

However, the re-naming is done for different purposes.

In Double Blind Shipping, the shipper is unknown to the buyer and the buyer is not aware of the shipper either.

The distributor is the middle person.

Once they receive the goods, he/she replaces the identity of the shipper with their own.

When the buyer receives the goods, they’ll assume the distributor is the actual producer.

The distributor conceals the shipper’s identity to remain in the game.

On the other side of the coin, private label is involved in normal shipping where no one is blind. The manufacturer produces unique merchandise for the distributor to sell under their brand.

The product contains information and the logo of the distributor.

Here no one’s identity is concealed.

How do I do Quality Control for Double-Blind Shipments?

Well here is where a reliable distributor say one you have worked with before or a freight broker comes in.

You may not see the product before it gets to you.

The best you can do is to send a prototype of the goods you want to your distributor who will send it to your supplier.

The supplier can then make products from your sample.

You can decide to trust your distributor, ask them for photos of the products, have a video call where you can see goods and approve whether they are in order.

Equally, you can ask a third party like a friend who stays around to verify the quality of the goods before they are shipped to you.

Can I lose Money while Double Blind Shipping?

Yes. All businesses are risky.

While starting you don’t know where you’ll make any profit or a loss.

It’s important to have business strategies.

Here’s what to do to avoid losses:

1. 1. 1. 1. 1. Don’t get in with both feet; test the waters first.
            2. Build a good relationship with your customer- the internet has made the world a global village.

While trying so hard to make your customers ‘blind’ they may find other means of contacting the actual producer for better prices of goods.

Create extra value with your client; offer fair prices and outstanding customer care services.

1. 1. 1. 1. • Before settling for a double-blind Shipment, compare it with drop shipping.

These two are more or less the same but most suppliers charge more for blind shipment.

1. 1. 1. 1. 1. Do a random sample check of your products to verify quality before shipping them.

 Is Double Blind Shipping applicable to all Shipments?

Yes, it is.

You can also choose blind freight shipping for bulky shipment.

How long does it take to Ship a Double-Blind Shipment?

Statistic shows, shippers expect to receive their shipment quickly and at an affordable price. They forget faster transit time can be costly.

Double-blind shipment cuts down the shipping time frame, however, it’s still affected by factors such as:

1. 1. 1. 1. 1. Nature of goods
            2. Season- peak or off-peak
            3. Means of transport
            4. Destination

Can I use Double-Blind Shipping if Ordering Goods from Different Suppliers?

Yes, you can

Liaise with your freight broker on this.

How do I deal with Suppliers Making Mistakes with Double-Blind Shipment?

Double-blind shipment is a complex shipping strategy hence mistakes might occur.

Here’s how to deal with errors you come across:

1. 1. 1. 1. 1. When three Bills of Quantities are involved, ensure the carrier has the right one at hand. One with the right pickup and delivery point information on their records.

Failure to which the incorrect Bill of Landing may be used resulting in freight delivery to the wrong location.

1. 1. 1. 1. 1. Ensure you have a good relationship with your supplier in case of anything.

The reason being carriers may do their best to conceal both identities however they are not responsible for any errors.

In case received goods are not what you expected, communicate with your supplier for replacement immediately.

At Tj chinafreight, we will help you in all your freight forwarding services from China.

Contact us now for all your shipping needs.

In this guide, you will find all information you’re looking for about disbursement service fee.

So, if you want to learn more about disbursement service fee, read this guide.

What is a Disbursement Service Fee?

Disbursement Service Fee is charges made for the clients who in one way or another do not directly pay taxes and duties to customs.

Remember, this not only applies to customs, but also other relevant government authorities.

Delivery and transportation fees can be categorized as disbursement service fees.

Normally, the Disbursement service fee is calculated in the form percentage. This means getting the percentage charges of the outlaid duty fee and taxes.

Why do Third Parties charge Disbursement Service Fee?

Third parties are individuals who are involved in carrying out transactions or activities without direction from the main participant.

Usually, third parties charge a Disbursement service fee for the following reason:

Third parties pay charges on behalf of the customers by acting as the agents of the customer.

Normally it is the client’s responsibility to make payments on goods ordered and therefore involving third parties requires you to be charged for the disbursement service fee.

Third parties also charge the disbursement service fee and present it as a separate cost on the invoice hence, clients can pay them separately.

The third-party receives instructions from the customer to make any necessary payments.

This means all the payments done excluding the actual cost of products are chargeable by the third party.

The customers know very well that the goods are not directly from the third party but from the supplier.

Hence, the disbursement service fee used must be charged.

Timely payment of the disbursement service fee enhances the timely delivery of goods. These as a result allow the customers to get goods faster and safely.

What Services do Third Parties offer to assist with Customs Clearance?

Third parties are most important when the client wants to import shipments from other countries.

They act as intermediaries between the seller, relevant government authorities, and the client by offering the following services:

Besides, they prepare all paper documents required to avoid any additional documents that may cause an increase in charges.

They ensure the presentation of the correct documents to the customs officers to prevent any unnecessary charges

Third parties also provide the clients with relevant information. For instance, they provide information on refundability of duties and taxes in case they are paid.

They are used as agents by the customer to pay for the customs clearance fee which is mandatory before the release of the shipped goods.

Third parties offer negotiations with customs agents in case of any arising issues by contacting the seller for any possible solution.

This reduces the rate at which goods are pontificated by the customs agents.

They also offer delivery services to the customer’s location. Third-party ensure that goods are delivered to the customer at right time and in the right state.

What are the Benefits of using Third-Party Logistics Service to pay Customs Duties and Taxes?

Third-party logistics contain third parties that have a stake in the transportation segment and its physical assets.

Thereby, offering a comprehensive distribution of services along the chain. These services include packaging, loading, warehousing, and terminal operations.

Third party logistic services provide ways of reducing the costs spent on paying the customs duties and taxes.

Negotiations can be done to suit the right amount of duty charges and tax to be paid for the goods.

Third-party logistic service provides rates of customs duties and taxes to be paid on different shipments of goods.

Therefore, prevents overcharging or undercharging of these goods.

Third party logistics are aware of the relevant procedure and logistics to be followed when paying for custom duties and services.

Therefore, they make the process efficient and faster.

For beginners in shipments of products, it’s the safest way since you do not have enough knowledge to do it alone.

It also saves on time that the client would spend going through all the relevant authorities to make payment and ensure proper clearance of goods by custom clearance body.

 Does the Disbursement Service Fee include the Customs Duties and Taxes?

No, a disbursement service fee is not inclusive of the custom duties and taxes.

A disbursement service fee is commonly used to settle for transportation and delivery of the shipped goods.

However, if the customer decides to pay charges for the dutiable international shipment, the customer caters to all the charges incurred.

This means the customer works directly with customs to settle all the tax and custom duty chargers for the goods to be released.

What is the difference between Disbursement Service Fee and Customs Clearance Fee?

The disbursement service fee is always calculated in form of a percentage by getting the outlaid charges on duties and taxes.

For instance, 2.5% and 3.5% of the combined duties change after the shipped goods arrive.

Custom clearance fees are charges paid to the customs clearance agent to incur the cost of submitting the documentation and processing of the duty’s payments.

Custom clearance fee is not included in the client quote as unlike in the disbursement service fee where it is included in the client quotes.

A disbursement service fee is charged before the goods are shipped to the country of destination.

Whereas, the customs clearance fee is charged by the custom or relevant authorities during inspection of the shipped goods.

How much is Disbursement Service Fee?

Disbursement service fee usually varies depending on:

• Type of shipped goods
• Mode of transportation to be used in shipping goods
• Import destination
• Number of goods shipped

Putting the above factors in mind, the disbursement service fee mostly varies from 2% to 3.5% of the total amount of the product

Note that the disbursement service fee is calculated as a percentage of outlaid duties and taxes.

What are the advantages of Clearing Customs with the Help of a Third Party versus clearing myself?

Clearing customs with the help of a third party have more benefits compared to clearing them by oneself.

This means that the client is not directly involved in all the activities to be undertaken during the customs clearing process.

• The third party provides efficient and cost-effective shipment solutions based on what the client requires.
• If you are a beginner in shipping activities, using a third party will make the process of shipment process seamless and avoidance of unnecessary expenditures.
• They also can negotiate the duty rates of the shipped goods. This as result may lead to a reduction of these charges.
• Third-party provide and process all the documentation required for the shipping and customs clearance process. This process can be very tedious when carrying them out by myself.
• Third parties are well informed with different modes of transportation and also the safety of goods. Unlike, doing it by yourself where you question every action you take towards the shipping process.
• Clearing customs by myself will involve a lot of money needed to see that all activities from shipment to delivery are accomplished. Involving a third party prevents direct involvement in all these activities.

Will, I still pay Disbursement Service Fee if I pay Duties and Taxes directly to Customs?

No, you are not required to pay the disbursement service fee once you directly pay the duties and taxes to customs.

Therefore, when the shipment arrives, it is directly delivered to the client.

Disbursement service fee is applied in cases where the clients do not directly pay taxes and duties to customs.

When you are a regular importer, it creates a platform or an account with the custom regulatory bodies that allow the clients to withhold tax and duties.

In what ways does the Disbursement Service Fee impact the Total Import Cost of a Shipment?

Disbursement service fees have different impacts on the total import cost of a shipment. These impacts include:

• Withholding of shipped goods by the customs agents if the disbursement fee has not been included in the client’s quote.

These as result may include higher charges that are not budgeted for.

• When a client pays for the disbursement service fee, customs duties and taxes can be evaded.

Thus reducing the amount spent in the customs clearance process.

• Choosing what mode of transportation to use in shipping the goods, determines the disbursement fee charged.

Therefore, being conversant with these means is important.

• Quicker and shorter transportations mean help in saving in the end game of total import cost of the shipment.
• Sellers imposing high disbursement service fees may lead to clients evaluating whether to pay for the customs duties and taxes or not.

These may result in the added budget of the cost that was not initially planned for.

• Enquiring the disbursement service fee before ordering the shipment prevents the quotation of charges that are included in the invoice.

Over quotation of these service fees leads to the customer paying extra charges thus increasing the total import cost.

Which Factors influence the cost of Disbursement Service in International Shipping?

The cost of disbursement service in international shipping varies due to the following factors:

• Import destination
• Net weight and gross of the shipment
• Amount of goods
• Nature of product
• Duration of the clearance process
• Special clearance needs
• Type of packaging
• Duty rate

When all these factors are considered, the customer can determine the total expenditures to be spent while shipping, and during the clearance process.

Who is responsible for Disbursement Service Fee Payment?

We may apply and invoice these fees, which are subject to changes to the following:

• Shippers
• A third party based on the customers
• Consignees

Are all Imports subjects to Disbursement Service Fee?

Yes, all goods imported from other countries are subjects to disbursement service fees.

Factors that determine the cost of disbursement service fees are importantly considered in this scenario.

You should consider the destination location and the mode of shipping these products for you to determine the amount of disbursement service fee to charge.

When customers order goods from sellers upon arrival to the destination location, customers can evade paying the customs duties and taxes.

Disbursement service fee allows goods to be released by the seller.

Disbursement service fee is always added to the VAT and the client’s quote that enable the clearing of shipment and clearance of goods by customs.

Will I get charged a Disbursement Service Fee if importing to a Country where Duties and Taxes don’t Apply?

Yes, the Disbursement service fee is applied even in countries where custom duties and taxes are free.

Most third parties charge a flat rate of 2.5% of the value of imported goods.

Normally the disbursement service fee is paid by the customer or through a third party.

That is, you will pay the seller before the release of a shipment to the required destination. Therefore, for you to receive the ordered goods you have to pay for these service charges.

Relevant authorities in countries that are duty and tax-free do not provide any regulations concerning the disbursement service fee.

How long does Customs Clearance take when I use a Third Party Agent?

There is no one size fits period when it comes to customs clearance because this depends on the type of shipments, the country, and the destination country.

Authorities in different countries have different clearance requirements, and how long it takes depends on the paperwork required based on the type of goods you are shipping.

However, third parties make your customs clearance process quick and hassle-free. They use their knowledge, connections, and experience to make the clearance faster.

Which Customs Documents do I need to provide for Import Clearance with a Third Party?

There are many documents required for import clearance of the goods shipped.

These documents vary depending on the type of goods you are shipping.

Completing the relevant documents accurately not only saves you from the delayed custom clearance process but also reduces the risks of high penalties.

More importantly, documentation varies depending on the country you are importing from and also the destination of the shipment.

Some of these documents include:

Commercial invoice: this document allows the customs duty officers to compare the value of stated products in the invoice with the actual amount in the market.

This prevents over quoting or underquoting that may lead to penalties.

Import license: under any government for you to import goods from other countries, it’s mandatory for you to possess the license.

Third-party should provide this document for the goods to be cleared.

Transport documentation: the third party should have the correct transportation documentation depending on the mode of transportation of the goods.

Such include, Bill of landing, Airway bill, Road waybill among others.

What happens if my Shipment gets stuck at Customs in relation to Disbursement Service Fee?

In most cases, the shipment gets stuck due to incomplete payment of the charges required. Customers are charged with a disbursement fee that is inclusive of transportation and delivery of the goods.

This as result may lead to shipping back of the goods to the seller.

However, to prevent these nasty scenarios should involve a third party to settle the misunderstanding with customs.

Third-party contacts the seller to enquire if there any outstanding disbursement service fees and is so, provides ways of settling the charges.

How can I reduce or avoid Disbursement Service Fee when Shipping Internationally?

You must have the required knowledge of how much a shipment is charged depending on the goods you want shipping.

This enables you to know some of the fee charges that you can avoid hence, ease the movement of shipped products.

Proper packaging; ensures that the shipped goods are not damaged.

It also reduces the cost incurred during shipping as the goods are not overweight.

Importation of domestic goods rather than goods with harmful components. This saves you on the cost of importation.

It also prevents you from the constant encounter with relevant authorities.

Ensure that you have the correct information of the destination country to avoid wrong location delivery.

Deliver package with duties: This prevents the clients from abandoning the goods due to charges that are not included in the invoices.

What Payment Options are there for Disbursement Service Fee?

Some of the payment options used for the disbursement service fee include:

Visa direct: use of both credit card and debit card can be used to pay for this disbursement fee to customs or relevant authorities.

This is also applicable when dealing with third parties.

PayPal enables scheduling and automation of disbursement fees to a list of recipients.

This means if you have ordered different shipments, you can conveniently make the payments.

Can I claim back the Disbursement Service Fee? |

Yes, the disbursement service fee is claimable.

Disbursement service fee includes transportation and the delivery fee of the shipped goods.

These charges are normally included in the VAT and are included in the invoice presented to the customer. You can claim any VAT charges paid for the shipped goods.

Therefore, you should always find a suitable way to separate these charges by ensuring that goods delivered meet the threshold. Also, you should be able to provide all VAT documentation to the relevant seller for easy processing of the fee.

At Tj chinafreight, we will help you in all the freight forwarding services from China.

Contact us now for competitive prices when shipping from China.

Importing racking from China can be a problem for you if you are not familiar with importing or shipping racking from China.

The information on this guide will be beneficial for you. Here, you can find the best ways to import and ship time for your racking.

The Possible Routes/Ways You Can Adopt To Import Racking From China

There can be four possible routes/ways that you can use to import your racking from China.

• Sea
• Air
• Rail
• Road

Sea Freight From China

If you have ordered a large volume of racking from China that is very oversize and abnormally shaped, sea freight will be the best option.

The cargo ships from China carry many products at a significantly lower cost than other shipment ways.

You should note that sea freight from China may take a long time to ship your products that do not interfere with your delivery schedules.

FCL and LCL Shipment From China

If you are interested in importing your racking through sea freight, this can be done using the two options like LCL (Less Than Container Load) or FCL (Full Container Load).

You should consider the LCL shipping when you need to import a small racking volume from China that cannot fill the complete shipping container.

LCL Shipping provides you an economical way to import a small volume of racking from China.

However, In FCL Shipment, you need to import a large volume of racking from China that can fill the entire shipping container.

FCL shipping is faster than LCL shipping as LCL shipping must have to consolidate different shipments.

Air Freight From China

When you need to import racking on an urgent basis from China, air freight will be the best option.

There are many air freight service providers in China like China Airlines, Emirates, Lufthansa Air, British Airways, Cathay Pacific, and China Southern Airlines.

Importing racking from air freight service also subject to customs clearance like importing through sea freight from China.

Rail Freight From China

When you need to import racking from China to Europe or East Asia, rail freight would be the best option.

Importing racking through rail freight is much cheaper than air freight and slightly expensive, and faster than sea shipping.

You can carry the same amount of racking weight in rail freight as you can carry in shipping by sea.

Shipping racking from China through rail offers both the FCL(Full Container Load) and LCL (Less Than Container Load) service.

Drop Shipping From China

All the racking manufacturer companies in China also exports the ordered racking to their customer’s warehouse.

You can give all the shipment responsibilities of your racking to the supplier you are buying your racking.

Different racking manufacturer companies provide their own exporting facilities.

You must choose that racking manufacturer that benefits your business in the best possible way.

Import Racking By Hiring a Freight Forwarder In China

Several freight forwarders in China can help you import racking from China to your desired country with maximum accuracy.

You should hire that freight forwarder who could be able to handle your racking and shipments from any port of China to any country.

The freight forwarder takes all the responsibilities of your racking from supplier to the destination shipment port of your warehouse by completing all the documentation and custom processes without disturbing you.

Import Racking Using Your Abilities.

If you have good contacts with different shipment companies in China, you can import your racking from China by using your abilities.

First, you should select the best possible route for your shipment according to your budget and the type of racking you order from China.

You can arrange transportation of your racking from the supplier to the shipment port by completing all the documentation and custom processes and then track your loaded products by using technology.

After the arrival of your shipment to your country, you can get your order by completing all the documentation and custom processes.

Incoterms Agreement Between Buyer And Seller

The International Chamber of Commerce(ICC) designs the Inco  (International Commercial) terms as a happy medium between buyer and seller to ensure smooth trading.

To import racking from China, you should agree on one of thirteen Incoterms and then sign a contract with the racking supplier without worrying about the freight and its insurance.

What Is The Delivery Time Of Racking From China?

The racking manufacturers around the world provide different delivery times from 30 to 35 days as per your demands.

They can deliver your racking at your door for just 15 to 25 days only.

How Long The Sea Time From China Port?

The sea time varies for different countries.

It takes about 20 to 30 days sea time to America, 30 to 35 days sea time to South America, 25 to 30 days sea time to Europe, and nine days sea time to Southeast Asia.

How Long The Custom Clearance Time?

The total time it will take to clear your cargo in China depends on several factors like port congestion issues, among other things.

During the summer months, when Chinese ports are full of cargo moving in or out of the country, it may take a little more time.

The process can take between 1-2 days or more, depending on the season.

What Are The Benefits Of Importing Racking From China?

Import racking from China can be your good opportunity to create a new market in your hometown.

Because it makes for good business when you bring it home and resell it! There are several reasons for this:

• The wages in China are cheaper
• Materials are more accessible
• The Chinese are experts at designing products

If you want a reliable and cost-effective racking manufacturer in China, then the Nanjing International OKE Storage Systems can serve the best services for your warehouse storage solution.

The OKE Storage System in China has more than 20 years of experience in the manufacturing and supplying racking to around 85 countries.

They can provide top-quality one-stop storage solutions for all types of racking.

OKE Storage can do door to door prices, which means they can deliver their racking to your warehouse directly.

The OKE Storage System provides you free installation guides and videos, and if you need them, they can send experienced racking engineers to your door to choose the right configuration for your racking.

When you are looking for a reliable racking supplier in China, OKE Storage can be your best choice.

They always take care of the needs of their customers and uses the best quality material that longs lasts for a number of years.

You can contact them by visiting their warehouse in Nanjing, China, or emailing them at sales@okestorage.com

In this guide, you will find all information you’re looking for about drop.

So, if you have any question about drop, you will find the answer right here.

Let’s dive right in.

What is a Drop in Shipping and Logistics?

Drop refers to a process in which a trucker makes delivery of FCL shipments to the customer destination. However, the trucker does not wait for complete offload of the cargo.

Here the shipping container is left at the drop destination and offloading is given time to take place. Later the trucking driver comes to pick up the empty container.

The timeline is usually within 48 hrs.

When Should I Consider a Drop for Cargo Delivery?

A drop for cargo becomes more efficient when dealing with heavy or voluminous cargo. These type of shipments take time to offload.

As a result, the truck drivers see it fit to leave the cargo unloaded, and come back later when offloading is complete.

There are two options for which the truck drivers can opt for. There is the container drop, and drop and pick categories.

The container drop allows the truck driver to come for the container later after offloading. However, for the drop and pick, the warehouse usually has a ready empty container for the truck driver for exchange

The drop and pick is efficient only when the warehouse has ready empty containers for exchange. This means the warehouse is frequently receiving containers.

Therefore, if a shipment takes time to offload then a drop is the best option for delivery.

What are the Benefits of a Drop off for Container Delivery?

Drop offs for containers come with various benefits. Aside from being time conscious, drop offs create efficiency in transportation of containers.

Additionally, drop offs help reduce drivers` workload and costs. Below are major benefits arising from drop off container delivery;

Guarantee Better Service Delivery Levels

This is because drivers are able to take rests as mandated by the federal authority. The drop offs allow drivers to drop containers at available warehouses.

This is because the warehouse regulations only allow drivers to drive for a maximum of 11 hrs. If the cargo fails to reach the specific destination by this time, another driver takes over to ensure the cargo arrives.

As a result, accurate timings for delivery are enhanced.

Convenience and Flexibility to Drivers and Carriers

Delays not only reduce credibility of carriers and drivers; they also result in unavoidable costs. Delays also attract possible detentions in the warehouse.

However, drop offs help evade such inconveniences. It also offers enough time for loading or offloading cargo. This further translates to efficient time management.

Convenient to Shippers and Workers of a Warehouse

With drop offs, there is no need to rush and offload shipments in a hurry due to time.

Drop offs create time for warehouse workers to carefully unload the truck without causing damage to the cargo.

Some shippers do not have sufficient employees to offload the trucks.

And this aspect does not change even during high peak seasons when shipments are streaming in in large numbers.

As a result, it might lead to overworking of employees.

To counter this, most shippers use the drop off procedure to create adequate time for loading and unloading.

This translates to better service delivery to clients, hence create a customer satisfaction.

It further helps the warehouse carriers and customers to be in control of the pricing in drop shipping.

Facilitate Reduced Shipping Costs

Shipping attracts voluminous costs.

Consequently, drop offs aim to reduce these costs.

Drop offs cancel any possibilities of accruing detention charges.

Additionally, shippers have a date that they must adhere to in relation to the arrival of the shipment.

Failure to which, the delays attract fines.

To avoid such inconveniences, drop offs help scrap off such costs.

What is FCL Shipment Procedure?

There are two procedures in the FCL shipment delivery and unloading process. There is the live and drop procedure.

For the live procedure, the shipment arrives at the specific destination, and the driver waits until unloading is complete. This should take not more than two hours.

In the drop procedure, the driver makes sure the cargo arrives on time. However, unlike in live unloading, the driver is allowed to come back later to pick the container once unloading is complete.

Nonetheless, it is a little bit expensive due to the extra trip from the driver to pick up the container. To avoid extra costs, the warehouse offers another container in exchange for the one in arrival.

This procedure is also known as drop and pick procedure.

Drop and pick is most convenient for those warehouses that are frequently receiving shipments.

Is a Drop Delivery applicable for LCL Shipments?

Yes. However, there are some considerations to make to ensure that the drop delivery is done efficiently.

This is because in LCL shipments, the container carries different cargo for different clients. Hence it is important to be careful when offloading to avoid unloading someone else`s cargo.

What is the difference between ‘Drop’ and ‘Drop and Pick’ for FCL delivery?

Drop in FCL shipment refers to the procedure where truck driver in charge of delivering the cargo leaves the container at the warehouse.

He later comes back for the container within 48 hours when the unloading is complete.

Drop incurs extra costs to cater for the trip made to come back for the container.

Drop and pick allows the truck driver to deliver the shipment but goes back with another empty container in exchange.

As a result, warehouses doing a drop and pick FCL delivery require extra empty containers for exchange.

What is a Drop Fee?

This is the extra fee that covers the delivery of containers and later pick up of the container when complete unloading is done.

This fee is also known as bobtail fee.

How much does a Container Drop off cost?

Container drop off cost vary between different shippers.

As a result, it is advisable to be in contact with the management of your shipper to clearly highlight the costs to incur.

However, factors such as time during unloading that exceeds two hours will attract increased costs.

Also in case of an extra trip, due to time in offloading, this will attract additional costs.

Which factors influence Container Drop Off rates?

There are various factors that contribute to the pricing of container drop offs. These include;

Flexibility and Speed to Attend to the Containers

Most truck drivers are on a time schedule. Therefore, pick and delivery time for containers is very crucial to them.

Long distances to pick up and delivery destinations will definitely incur more costs. Moreover, delays during unloading attract fines and possibly penalties, hence adding to the costs.

Market Factors

This mainly encompasses the fuel aspect. The supply and demand for fuel is usually a main factor that affects pricing in drop off containers.

Increase in fuel prices will definitely increase the container drop off rates.

Weight of Cargo

Different shippers have different rates pertaining loads to carry. The more the load the less the prices to pay.

However, heavy loads make the trucks more susceptible to cases of wear and tear. As a result, the container drops off rates may increase if the load is weighty.

Seasons

All year round there are different seasons which affect the shipments and container drop off rates. It is this seasons that determine the level of peaks.

Produce seasons tend to attract higher rates. However, if you have an established relationship with your shipper, you might evade such higher rates.

Natural Hazards

This encompass hurricanes or events that lead to port strikes. Such unforeseen factors make availability of trucks for container drop off unavailable.

As a result, the available trucks tend to charge higher container drop off prices.

Long Distances

Naturally, long distances attract higher rates.

What are the Additional Fees Associated with Shipment Drop?

The additional fee is known as a drop fee. This fee caters for the extra trip in making a drop due to the return for the container.

Additionally, in the event of a live drop, if the unloading extends to more than two hours, the extra hours are charged.

How can I Avoid Unnecessary Charges during a Drop?

By ensuring that you unload the container within 24hrs after the drop.

Additionally, you can opt for a live drop, where unloading takes place within 2hrs and the container gets back to the truck driver.

Moreover, if you have an extra empty container the same size as the one dropped, exchanging it will be wise. This helps avoid incurring unnecessary charges.

Do I need Freight Forwarder Services during Container Drop Services?

If you are not fully conversant with the drop services, a freight forwarder comes in handy.

Provide the full documents required by the freight forwarder regarding container drop for your cargo.

What are the Specifications of FCL Containers in relation to Drop off services?

FCL shipping containers come in two types.

The 20 feet and the 4o feet types. Further classification takes root depending on the purpose of the container.

However, below are specifications of the 20 feet and 40 feet containers for general purpose shipping.

20`GP Shipping Container Specification

The 20 footer container, is 20 feet in length, from its name.

It is the most common cost-efficient container shipment method to use.

For the 20` GP container, the merchandise is packed into cartons. The cartons are later rearranged into pallets and then arranged in the container.

In total, the container accommodates 16 pallets. Thus, 2 pallets high, 2 pallets wide and 8 pallets deep.

40`GP Shipping Container Specifications

This container is similar to the 20`GP container. The difference is the sizes.

The 40`GP shipping container is double the size of the 20`GP container. Thus, it accommodates double the number of pallets.

The containers as well avail themselves in different designs to suit different purposes. These include

• Dry cargo containers
• Refrigerated containers
• Open top containers
• Flat Rack containers
• High cube containers

Is there a Weight Limit for Container Drop?

All containers must undergo a weight check before dispatch. This is to ensure that all containers are within the desired weight limit.

Shippers observe three factors that help determine the weight of a container. These are

• Rating
• Tare mass
• Payload

Rating outlines the maximum weight a container can weigh with its contents. Each type of container comes with its own weight.

For example, a 20` dry cargo container weighs 24,000kgs.

Tare mass outlines the actual weight of the container without any cargo inside.

This weight is affected by the type of material used to make the container and the design of the container.

Payload is the maximum weight of the cargo for containers. Both the Tare mass and the Rating help compute the maximum weight for payload.

Payload= Rating-Tare mass

These weights are determined at specific weighbridge points. If a truck exceeds the weight of required pay load, it is denied access

This further translates to further costs of unloading and repackaging the cargo to meet the required weight.

Weight limits help protect roads. Additionally, weight limits vary across different countries, hence it is advisable to be on the look out to avoid possible inconveniences.

Is Cargo Insurance Necessary During a Container Drop?

Yes. Accidents and possible hijacks sometimes are inevitable.  As a result, making sure you have an insurance cover goes a long way to protect you from loses.

Do Container Drop Services Provide Storage Services?

Yes. The truck driver leaves the container at the designated warehouse.

The warehouse thus has to keep safe the container for return. Hence storage services are available for container drop.

What are the Requirements for a Drop in Shipping?

Documents in requirement for a drop shipping include;

• FCL shipping invoice
• Packing list
• Shipper export declaration
• Insurance documents
• Certificate of origin in relation to the cargo shipment

Availability of this documents especially if you are using the freight forwarder enables for easier processing of the drop shipment.

How does Live Unload Vs Drop compare in Container Delivery?

Live unload involves the actual unload of container shipment. The process does not usually take long.

However, if it takes more than two hours, there will be a fine to pay.

In the case of a drop, the truck driver leaves the container for unloading and later comes back for it.

What are the Common Mistakes to Avoid during FCL Shipping and Delivery?

FCL shipping and Delivery involves a number of procedures. However, a lot of clients tend to incur unnecessary costs due to negligence and small mistakes when handling the FCL shipment.

Here are common mistakes to avoid during FCL shipping and delivery.

Delaying to Pick Up your FCL Shipment On Time

Once your shipment arrives at the port, it is on a countdown to the number of days you are supposed to pick up.

Failure to which the shipment will be under detention.

Delays either from the client or the consignee to pick up the container results to detention. Consequently, this results to detention fees.

Door to Door Delivery

For door to door delivery for FCL shipment, it is common for clients to forget to present the full set of required documents. It is important to make sure that these documents are at the full disposal of your shipper.

Door to Port

For door to Port services, ensure your cargo is ready for dispatch to the desired port.

The shipper only has a maximum of two hours to load at a shipper facility. Any additional hour attracts extra costs.

Can I Track an FCL Shipment Scheduled for a Drop?

Yes. The implementation of electronic loading device facilitates easier tracking for your cargo.

This is because as drivers manage their time at on the road and loading centers.

This information further facilitates to the whereabouts of the cargo.

Additionally, if you are using a freight forwarder, tracking services are made available upon request.

Most freight forwarders offer this service to their clients to boost their credibility.

In case you have any question, your trusted freight forwarder from China is here to help – Contact Tj chinafreight China right now.

This guide explores yet another important freight terms called drayage.

So, if you want to learn more about drayage, read this guide.

What is Drayage?

Drayage is the movement of a full container load by a truck from a port to a storage facility via ground transport.

This step is very crucial in the supply chain system as it fill in the gaps in the intermodal logistics.

Drayage usually involves a short distance travel.

What is the History of Drayage?

Drayage stems from the word “dray” which is a two wheeled cart which are pulled by horses. During the 18^th century, traders used to transport their cargo between the ports to the store houses using horse/camel-pulled drays.

There were no large sophisticated containers that are currently being used in drayage services. The horses would move freight from the rail, canal or port terminals to the storage facilities or destination.

Since the freight was heavy, the horses covered short distances within the radius of the terminals.

In 1910s, diesel powered trucks were introduced and used to replace the horses in the drayage services.

The trucks were able to accommodate large container freights.

Today, trucks and containers used in drayage are modern and tech-enabled making the process more efficient.

What is the role of Drayage in Shipping and Supply Chain Management?

Supply chain industry cannot be complete without drayage services in between. Drayage covers the short distances in between from one point to another over land within a region.

Every cargo movement from its point of origin to final destination involves several drayage movements.

Some of the major roles that drayage play in the global logistics include the following:

Intermodal Shipping

Intermodal shipping is the movement of cargo from one mode of shipping to another.

It involves a combination of transport means such as ship, rail, airplane or truck.

During long haul intermodal shipping, freight are transferred from one mode of transport to another.

Shifting these containers is done through drayage services from the port to rail station, or rail to truck, etc.

Special containers are used to avoid unpacking of containers during drayage.

Order Fulfillment

Drayage does not only involves connecting intermodal shipping, in some instances, it is used in door-to-door shipping.

In this era of ecommerce, some shippers use port warehouses from where the goods are distributed to their final consumer.

Such shippers usually do not operate from a physical store but use their online stores for business transaction.

A good example is the Amazon FBA, which consolidates its clients’ orders as per geographical regions before distributing.

The distribution is made possible by drayage services.

Cold Chain Transportation

With modern trucks such as reefers, we no longer have to wait for the cold weather to transport cold chain goods.

Cold chain goods can be moved from the port to the next stop or mode of transportation using reefer trucks.

Boost Container Industry

Heavy cargo such as steel, metals, automobiles, can be transported from port to rail station or final destination using specialized containers.

This has been made possible due to specialized drayage services.

How do Drayage Services Benefit Importers?

As discussed above, we have seen that drayage services are vital part in the logistics chain that cannot be ignored.

It is the link between the port and the next point for the container, either intermodal point or final destination.

That said, several benefits are therefore associate with drayage service to importers.

Efficiency

Transporting containers both full and empty to their intended spaces away from the port make port operation efficient and smooth.

This is because container overcrowding as well as port traffic congestion is greatly reduced.

Cost Effective

Moving containers by truck is cheaper and time saving since it involves a short distance. Drayage is normally completed within a single work shift.

Using other alternatives such as air freight or renting containers can be very expensive to the importers.

Secure

Hiring the services of experienced drayage service providers guarantees your goods security in the process.

This saves you losses that would be incurred if your goods were stolen or damaged during drayage.

Experienced service providers are also able to keep up with any changes in logistics regulations regarding cargo transport.

Accurate

Again, using experienced and well established drayage service providers who have working systems such as warehouse management systems (WMS) ensures accuracy.

This is because you have end-to-end visibility on your cargo during drayage.

Good working WMS ensures smooth transition during intermodal shipping, besides improving cargo security.

How does Drayage Service work?

Once freight arrive at the terminal ports, drayage drivers collect the shipment assigned to them and hit the road.

They ensure delivery of the shipment within the same work shift.

What is the Difference Between Drayage vs Cartage?

Drayage is the transportation of the whole container from the port to intermodal point or final destination or warehouse.

Cartage is the same as drayage only that it involves smaller units of the container content.

Is Intermodal shipping and Drayage the Same Thing?

Intermodal shipping refers to the use of multiple shipping modes to transport cargo from its origin to the final destination.

Shipping companies are able to plan and select the most efficient method of shipment transportation thus offering quality service.

In order for intermodal shipping to be successful, careful planning must be made beforehand with smooth transition in between.

Drayage on the other completes the chain in the different modes of transportation such as sea, air, rail or truck.

It involves trucking via road networks within a short haul to the different intermodal points.

What is the Difference Between Drayage and Cross Docking?

Drayage is the process of moving freight by road network over short distances within the supply chain.

Cross docking is the process of offloading freight from one mode of transport directly to an outbound transportation without storage.

Drayage can be from the port to a warehouse or to an intermodal point or final destination and vice versa.

Cross docking is from the manufacture or port and outbound to the final destination.

While drayage interlinks intermodal shipping process, cross docking is a form of intermodal shipping that is direct, no drayage is required.

In both scenarios, when cargo arrives at the port, it is unloaded, sorted and loaded to the next mode of transportation.

Perishable goods can be comfortable transported by drayage or cross docking.

Why is Drayage Important in Intermodal Shipping?

Intermodal shipping is the use of multiple transport methods like ship, rail and truck to move cargo from origin to destination.

In between the different mode of transportations, there is need to unload, shift and load the container cargo.

Drayage is the connection between any two or more mode of transportation usually done by trucks via the road system.

Drayage seems like a small link in the supply chain system but plays a significant role.

Every year, millions of drayage services are recorded in the cargo transport chain.

Having a well-organized system will ensure smooth flow of intermodal drayage throughout the shipping journey.

What are Drayage Classifications?

There are six categories of drayage services that you can select from depending on your logistics needs.

Drayage classification was done by the Intermodal Association of North America (IANA) as per their handling capacity and efficiency.

Door-to-door Drayage

As the name suggests, door-to-door drayage services is the trucking of goods to the retail customer using road network.

Expedited Drayage

This category of drayage involves shipment of freight that are time-sensitive and need urgent shipment.

Such goods are moved efficiently by road using trucks.

Inter-Carrier Drayage

This is movement of goods from one carrier to another such as form road to rail usually over a short haul.

Intra-Carrier (IMX) Drayage

This is intermodal shipment of freight from one hub to another by the same carrier.

Shuttle Drayage

When the hub of origin is full and cannot accommodated more shipment, some units are transported for a temporary storage elsewhere.

In this case shuttle drayage is used to move the both loaded and empty units.

Pier Drayage

Pier drayage is trucking of goods from previous rail terminal or pier hub to ocean dock or pier using road network.

How do I Choose the Right type of Drayage Service for my Shipment?

Having the right drayage service provider will ensure your shipment get to their intended point efficiently.

Therefore, you need to consider the following factors in order to choose the right drayage service provider.

Request for a quotation in order to get a rough idea of the drayage service charge and any other applicable cost.

The quotation also helps you to know if storage of empty containers, pick-up and delivery fees are applicable.

Check with the service provider if they offer cargo visibility during shipment through tracking.

Expected delivery of goods being transported.

These information will guide you in making the decision.

What does Specialized Drayage Mean in Shipping?

Not all cargo will fit in the general-purpose (GP) containers due to reasons such as size, shape or temperature requirements.

As such, specialized containers are used to ensure that all freight are taken care of as per their specifications.

They include reefers for transporting cold chain goods, open top containers for extra tall goods that cannot be loaded through the door.

Flat rack containers have foldable sides that help secure cargo during drayage.

They are ideal for oversized goods such as out or gauge cargo (OOG) like heavy machinery, construction materials or vehicle trucks.

Another specialized container that can be used is the high cube containers which resembles the GP but is slightly taller.

It is usually 45 feet high with a sinking floor from the front to its center.

One industry that mostly use specialized drayage in their delivery is the beer industry to transport their keg beer cylinders.

They use the low chassis trucks carriages with open sides for easy loading and unloading.

They use barrel ropes to unload the keg barrels, the heavy kegs land on a cushioned barrel pads.

Specialized drayage is important in the shipping industry, you should know the category where your goods fall when seeking drayage services.

How does Drayage Work in Cold Chain Logistics?

Cold chain logistics is the shipping, distribution and storage of cold and frozen shipment.

During pre-industrial era in 1840s, cold chain logistics was handled during cold weather conditions.

Shippers would use ice in shipping their perishable items to prevent them from going stale.

As trucks came into existence in 1910s, cold chain shipping was handled by trucks with ice in them.

They later advanced to modern refrigerated trucks around 1942.

Reefers continue to support the cold chain shipping to date as they help maintain low temperatures during shipment.

They have made it possible to ship fresh produce, pharmaceuticals drugs, fish, meat, horticultural produce, etc. without perishing.

Refrigerated containers are able to maintain the cold temperatures due to the insulation materials used in the containers.

They are also fitted with a cooling system, a compressor and a condenser device which work together to maintain same temperature.

Reefers do not depend on the truck, rail or vessel movement for their functionality.

Therefore, they are able to maintain temperature whether on transit or not.

Drayage services make it possible to transport cold chain goods from one hub to the next without breaking the logistics chain.

What Types of Drayage Containers are available for transporting Cargo?

There are a variety of drayage containers that can be used in the short haul of freight during drayage services.

A standard container is available in 20 feet, 40 feet and 45 feet length with a 6 or 8 feet height. These containers differ in sizes and specifications with some being made from steel or aluminum.

Shippers with perishable goods will use reefers; refrigerated containers to ship their goods in order to maintain the cold temperature.

Other available types of drayage containers are;

• Flat rack
• High cube
• Open top
• Dry container

Each and every container above is meant to make loading and unloading between shipments easy.

Choosing the right container that fits your logistics need will save you time and make drayage efficient.

What are the key considerations when looking for a Drayage Service Provider?

When looking to hire drayage services from a provider, there are a few factors before selecting one.

Location

The location the drayage service provide is crucial as this will impact on the efficiency of their drayage services.

Drayage service provides closer to an intermodal point are like to offer you more efficient services than those located far away.

This is because, the providers are likely to have a professional relationship with the intermodal point.

A good relationship between make quality service delivery easy and achievable.

Secondly, they are most likely to be familiar with the local regulations and practices of the intermodal point.

This helps shipper to prepare adequately for drayage services between the intermodal point and your service provider.

Work Experience

Drayage services form an essential part of the supply chain globally that cannot be mishandled. Working with an experienced drayage service provide will guarantee you smooth movement of goods in the short haul.

Advanced companies use integrated technology that offer clients visibility of their drayage services, this boost clients’ confidence in them.

More specifically, cold chain logistics require extra attention as the good being handled are temperature sensitive.

Settle for a provider who is sure of how drayage operates and who knows how to handle different freights.

Company Infrastructure

Before making a decision on the drayage service provider to settle for, you have to consider availability of their drayage equipment.

This is important because different freight have different container needs.

Having a provider who is well equipped will guarantee you quality services and ensure different goods are catered for.

Work force also go hand-in-hand with company infrastructure, the more labor force the faster and efficient the services.

What are Drayage Charges?

Drayage charges are fees payable for the drayage services offered by the drayage service provider.

They charges are billed separately from the main freight bill usually by the logistics company assigned this task.

The charges are normally for moving containers by trucks over land and within a short radius.

What Factors Influence Drayage Charges?

Some of the factors that influence drayage charges are:

Dimensions of Your Cargo

When calculating drayage cost the weight of your cargo is multiplied by the standard rate per 100 pounds.

Therefore, the higher the weight of your shipment the higher the cost of drayage.

Drayage Classification

There are different categories of drayage such as door-to-door drayage, pier drayage, shuttle drayage, etc.

Each of these drayage classification has its own drayage fee thus their cost will not be the same.

Category of Equipment

Drayage mostly involves the use of an entire container in the transportation process.

Different containers weight differently and have different use.

There are 20 foot, 20 foot with triaxle and 40 foot containers.

A 20-foot container weighs the lightest hence it is the fastest and cheapest to transport, followed by the 40-foot container.

When overweight cargo are being transported a 20-foot container is fitted with a triaxle for even weight distribution across the chassis.

Trucks and chassis used for 20-feet with triaxle are very expensive thus they raise drayage cost.

Drayage Distance

The distance covered by the truck affect the overall cost of drayage.

The shorter the distance travelled the cheaper the drayage fee and vice versa.

How is Drayage Cost Calculated?

Drayage is calculated by weight with a base rate for every 100 pounds.

When using drayage services request the provider to provide you with detailed quotation to enable you estimate your drayage cost.

It is advisable to use the average drayage rate when estimating your budget to avoid under estimating drayage fee.

Whenever you have a weight that is not in 100 denominations, rounding offer will be applied to the nearest 100 pound.

The weight is expressed as ‘CWT’ C is the Roman numerical expression for 100 and ‘w t’ is for weight.

Any loose cargo that weight less than 100 pounds and is transported separately may incur separate 200 pounds minimum charges.

The minimum charges are as per the discretion of the service provider.

For example:

If the drayage rate is USD 70 per 100 pounds and your goods weigh 240 pounds the calculations will be:

240 to the nearest 100 pounds equals 300 pounds. Hence USD 70 X 3 CWT = USD 210.

How do I Minimize Drayage Costs?

The cost of shipping freight is generally high, hence any chance to reduce drayage cost is highly welcome.

• Have your goods consolidated into one pallet or bigger container and ship together to avoid minimum of 200 pounds charges.
• Sort out goods into crated and uncrated then transport them under separate bill of lading. This will prevent shipping the entire cargo uncrated.
• Have small shipment delivered to your hotel address when going for trade shows then carry as hand luggage.
• Have upright standing shipping containers to avoid stacking charges. Let your provider unstacking of containers before delivering.
• Take a photo of your cargo as evidence in case of erroneous charges.

What is Border Drayage?

This is transportation of freight across geographical boundaries by trucking.

What is a Drayage Trailer?

This is a truck used in the transportation of the freight during drayage process.

What is Drayman?

The term drayage has several meanings such as:

1. Conveying freight from the port to warehouse, port to rail and port to final destination over a short distance.
2. The vehicle used to pick up goods at a border, port or intermodal port or
3. The fee charged for this type of logistic services

Drayman is therefore a person who carries out drayage services.

What is the Meaning of ‘Dry Run’ in Shipping?

Dry run is a situation whereby a trucker fails to pick up or deliver a shipment despite being scheduled.

Dry run can occur because the shipment wasn’t ready, shipper was not ready for delivery, shipper unaware or any other reason.

Dry run fee is applicable and is billed on shipper’s account.

What are the Challenges of Drayage?

Some of the challenges encountered by drayage service providers include:

Long Turnaround Time

At the sea port, several shipping vessels dock at any particular time, hence leading to port congestion.

As a result, drayman has to wait for longer before collecting the containers for drayage.

Long turnaround time leads to port charges for both the cargo owner and the logistics company such as demurrages, detention, etc.

Wasted time at the terminals lead to delivery delays as well.

Overstretched Resources

When there are several containers at the port, the storage facility gets overcrowded.

Port equipment too are not spared during this time, the cranes, fork lifts and radio shuttles become overbooked.

Getting empty containers become a challenge when the port is congested thus slowing down drayage process.

Shortage of containers especially specialized ones may delay drayage hence leading to extra cost for shippers.

Service providers have therefore come up with solutions to help reduce the impact of the challenges on their services.

Such solutions include; Transport Management Systems (TMS) which can be integrated with supply chain systems to better manage drayage operations.

This system helps the drayage company with back office work automation, customer interaction and information flow.

This way, all parties involved are able to plan ahead and oversee a situation that may delay drayage.

Trucker Shortage

There are few people taking up the job of truck drivers due to their history with low pay and poor working conditions.

However, drayage companies are working to change this by offering attractive base pay and other allowances.

How does Drayage Affect Shipping?

Drayage helps in transportation of cargo from port to warehouse, trade show or even final destination by road.

It fills the gaps in intermodal shipping by ensuring the cargo moves from one intermodal point to another smoothly.

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All information you are looking for about drop fee is right here.

So, if you want to learn anything about drop fees, then read this guide.

Let’s dive right in.

What does Drop mean in Logistics?

This refers to the process of a shipping truck dropping a container at the destination point that you agree with your shipper.

The shipping truck returns later to pick the empty shipping container.

You are responsible for unloading your goods from the container.

What is Drop Fee?

This is the fee that a container truck charges you for dropping their goods at an agreed destination point.

The truck owner picks the container after you have finished the unloading process.

The amount to pay for your drop fee depends on various factors such as the volume of your goods and the shipping distance.

What is the Significance of the Drop Fee in International Shipping?

Drop fee is beneficial differently to the different parties involved in international shipping.

As a shipper, the fee allows you time to pack your goods without having to worry over the deadlines.

Drop fee also reduces the overall cost of loading since you won’t have to hire extra labor for the loading process.

It also reduces your inventory cost since you pack the goods immediately after production to the trucker.

As a trucker, a drop fee helps you to ensure your truck and your client’s goods against damage during the loading and unloading process. This helps prevent loss to both parties in the event such damage occurs.

Is a Drop necessary in Shipping?

Yes.

Drop is vital in shipping due to the various benefits that it offers to your business.

It is particularly a useful method when shipping goods that you can quickly unload from the container. You can save a lot by using this type of shipping in your business.

This is because it requires little start-up cost and does not require a huge inventory.

You also reduce the cost it takes to ship since you don’t necessarily have to go supervise the loading of your goods.

You can also use this method to ship a variety of goods. This allows you to be flexible in terms of what you can import and the customers you can satisfy.

You are therefore in a position to do business throughout the year.

Dropshipping helps in reducing the overall shipping time by placing your order and waiting for their shipment at your destination.

You can utilize this time in expanding your business such as looking for more clients through product marketing.

When is Container Drop Implemented?

Different scenarios can cause you to implement a container drop process. For instance, if you want to minimize delivery appointments, reducing labor cost.

You can also implement this method if you are avoiding extra charges associated with truck carriers like waiting time costs.

What is the Difference between Drop Fee and Delivery Fee?

The difference between a drop fee and a delivery fee is in their validity duration.

Drop fee covers dropping off a container at your destination, the unloading and loading process until when your carrier comes for the container.

The delivery fee covers the cost of shipping your goods from your supplier to your warehouse or an agreed destination.

Do all Carriers charge Drop Fees?

Drop fee charges depend on the terms and conditions of the carrier. It is therefore critical that you check with your carrier before engaging them.

For instance, there is a carrier that charges a flat drop fee rate. Others the charge depends on the volume of goods and distance to your warehouse.

You have other carriers who do not charge a drop fee since they offer this as an incentive to attract potential clients.

What are the Costs Associated with Container Drop?

Container dropping attracts various costs depending on the carrier and available regulations. These costs include:

Delivery Labor Fee

This is the fee that you pay your trucker if you need their help in unloading goods from your container. The amount differs depending on the trucker and the contract you have with them.

Truck Waiting Fee

A truck waiting fee is a fee that your trucker charges you for having to wait more than a specified time as the unloading of your goods takes place.

Different truckers have a different time frame for charging truck waiting fees. You, therefore, have to agree with your trucker on the amount to pay.

Inside-delivery Fee

This is the fee that you pay to your trucker when you need their assistance in unloading and transporting your goods to an indoor facility.

You have to agree with your trucker on the amount to pay for this service.

What is a ‘Free Waiting Period’ during a Container Drop?

This refers to the time that your trucker waits for the loading or unloading of your container without having to incur additional cost.

A free waiting period is essential in the safe loading and unloading of your goods.

Different truckers and carriers tend to offer varying free waiting periods.

It is therefore critical that you select a carrier who offers an ideal free waiting period.

How can a ‘Free Waiting Period’ Impact my Container Drop Fees and other Delivery Charges?

The free waiting period helps in reducing the overall container drop fees and other delivery charges.

For instance, proper utilization of this time reduces the waiting time fee which reduces your overall container drop fees.

This time also reduces the risk associated with improper handling of your goods.

This reduces the insurance fee to pay thus impacting positively on the delivery charges.

What is Drop and Hook?

Drop and hook is a shipping terminology that implies that your trucker delivers a loaded container in exchange for an empty container.

The advantage of drop and hook is it reduces the overall shipping cost.

It is also an ideal method for shipping high-volume goods. Using this method reduces the overall shipping duration and cost.

This is by allowing your trucker to drop your container cargo and pick an empty container. However, for this method to be a success, both you and your trucker must reach an agreement on the process.

You must also have the same container as the one carrying your goods.

What is a Drop Trailer Load?

A drop trailer load is the volume of cargo that you are to load on a particular trailer.

The drop trailer load depends on the volume of the shipping container.

You should therefore check to avoid overloading the container.

Are the Charges for Container Service the same Container Drop Fees?

No. Container service charges are not similar to container drop fees.

Container service charges are those that the shipping terminal levies for storage and positioning of given containers.

This is usually before they load the containers to a particular shipping vessel.

Container drop fee is the levy that you pay to a carrier for dropping your container at an agreed destination.

The carrier later cones and picks the container after unloading your cargo.

Container service charges depend on among other factors the duration that a particular container stays at the port.

Container drop fees depend on among other factors the distance between the port and your final destination.

When do I consider a Drop Trailer Program?

Drop trailer program refers to the process where a carrier comes to your loading point to pick a trailer that was previously loaded.

It is a critical method if you consider the following circumstances:

Regular Shipping of High-volume Cargo

You can opt for this program if you are shipping a consistent volume of goods regularly.

This makes sense since it gives you time to load the goods in a particular trailer.

By the time the owner of the trailer comes to pick it up, you have finished the loading process. This leaves you loading the next trailer once the filled one takes off.

Grappling with Extreme Load Times

Not meeting the time deadlines that you agree with your trucker can be expensive.

This can be the case when loading high-volume goods within a given period.

You can avoid these expenses by using a drop trailer program. This gives you additional hours to load your goods onto a particular trailer.

Need for Flexibility

You can consider this program if you are having a tight delivery schedule.

This is because it gives you the flexibility of loading your goods as per the delivery schedule which gives you flexibility.

Enough Parking Spaces

For this program to work efficiently, you need to have enough space for loading and parking the trailer.

Such a space should consider the movement of loaders during the loading process.

It should also consider the movement of the trailer after loading.

Is it Possible to Negotiate Container Drop Fees?

Yes.

It is possible to negotiate container drop fees.

Various factors can help you in negotiating this fee. For instance, you can leverage the volume of goods you want to ship.

If you have a high volume that can span several trips, then your carrier can give you a discount. This is because you are a long-term business to them.

You can also check on the distance to negotiate the container drop fee. The longer the distance, the higher the cost you are to pay.

However, if you are to consider to and fro, then you can negotiate with your carrier since the back journey is with an empty container.

The basic idea with container drop is to create a lasting shipping relationship with one carrier. You can use this to negotiate better prices for your future shipment.

Comparing the services offered by different carriers can offer a basis for your price negotiation. For instance, you can check the prices and consider the services that you need most.

Ask your carrier if they can do minus these services to have a better price for your dropshipping.

How can I Reduce Unexpected Drop Fees and Overall Container Shipping Costs?

There are different ways that you can reduce unexpected drop fees and overall container shipping costs. Some of these ways include:

Giving your Carriers Flexibility during Offloading

You can reduce your drop fees and overall container shipping cost by allowing your carrier flexibility on how they handle your offloading.

This allows the driver to handle other tasks as they wait for the cargo.

By doing so, they reduce costs such as driver wait times.

Selecting an Ideal Third-party Logistic Partner

You must assess the partner who can handle your third-party logistics the right way.

Such a partner should have the necessary qualification and experience.

This helps in negotiating better ways that they can handle your goods at an affordable price. Proper negotiation reduces the overall container cost.

What is the Difference Between Drop Fee and Pre-Pull Fee?

A pre-pull fee is a cost that your trucker charges when they pick a container from the port but does not deliver or load it on the same day.

The charge is due to your carrier storing the container within their yard.

The pre-pull fee is essential in protecting you against port demurrage costs. Such a cost can increase the overall shipping of your goods.

Drop fee is the fee that your trucker charges to drop a container at your warehouse.

The fee also covers the cost of picking the container once you have loaded it.

Drop loading fee facilitates the loading and unloading of goods voluminous goods. It gives you time to load and unload such goods.

How does Drop Fee Differ from ‘Drop and Pull’ Fee in Trucking?

Drop fee is relatively lower compared to drop and pull fee in trucking.

This is because the drop fee covers the cost of dropping a container at the shipper’s warehouse and leaving.

The shipper must unload the goods from the container.

Once unloading is complete, the carrier returns to pick the empty container.

Besides, the drop and pull fee is the cost that you pay to the carrier to drop the container at your warehouse and unload it.

The carrier must unload the container and ensure the safety of your cargo.

After unloading, the carrier picks the empty container and returns it to the port.

The drop and pull fee leaves all the risks to the carrier that is why it is expensive compared to the drop fee.

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If you have any questions about dry van shipping, you will find the answer right here.

So, keep reading to learn more about dry van shipping.

What is Dry Van Shipping?

Dry Van Shipping also known as ‘box on wheels’ is shipping done in a trailer that doesn’t contain temperature-controlled equipment.

It’s a fully enclosed semi-trailer used to transport palletized cargo and lose cartons.

It is called dry because it keeps products in the trailer dry by protecting them from environmental elements. Harsh weather, accidents, road debris or any other environmental element may interfere with the product quality.

Forklifts or lift gates can be used while unloading cargo from the trailer.

Which Industries rely on Dry Van Shipping?

Dry Van Shipping is the most trusted and prevalent form of freight transportation method used today.

In fact, Dry Van Trailers are the common trailers you see behind semi-trucks daily; it’s just that the term sounds new.

The following industries use Dry Van Shipping:

1. Non-perishable food and beverage
2. Electronics
3. Automotive
4. Manufacturing
5. Consumer goods
6. Entertainment
7. Health and beauty
8. Cleaning products
9. Textile and clothing

How does Dry Van Shipping Work?

Well, as a buyer you choose the kind of shipping method you want based on the nature of your goods.

Once you settle with Dry Van Shipping, the seller manufactures goods, transports them to the port, and hands them into the first carrier. The carrier then transports the goods to you.

What are the Two Types of Dry Van Shipping?

In Dry Van Shipping, companies usually book two methods of transportation namely;

1. Less Than Truckload Services- This is suitable if goods can’t fit the entire trailer. You can send them as stacked or non-stacked palletized cargo.

It’s cheaper due to the shared cost of transportation however slow because the truck has to stop and drop off goods.

1. Full Truckload Services- you book the entire truck; no sharing. Goods are transported directly to the stated location

What are the Benefits of Dry Van Shipping?

The following are the main advantages of Dry Van Shipping:

1. It’s highly available.
2. It’s an affordable method of transporting palletized cargo compared to other shipping methods.
3. It has a capacity of 45000 pounds which is large enough for many businesses.
4. You don’t have to worry about the weather; it has a four-sided barrier that protects goods
5. Goods are in a locked container hence they are protected from theft.
6. Its reliable shipment method; you can choose either Full Truckload or Less than Truckload.
7. It can be used for both short and long-distance shipping.

How does Dry Van vs Flat Bed Compare?

Dry Van and Flat Bed are forms of freight transportation.

They have the following similarities:

1. Both trailers can be used to carry bulky non-perishable goods.
2. Both trailers don’t have temperature regulators.
3. Both are common modes of transport in international trade.
4. The process of offloading cargo is quite simple. In Dry Van, the trailer can be attached to a loading dock, a forklift, or a lift gate are used while in a Flat Bed, the flat surface may ease the process.

When Should I Use Dry Van in Shipping?

Consider using Dry Van Shipping when:

1. Transporting goods for short or long-distance via road.
2. When transporting goods either as FCL or LCL.
3. When there is a need to transport goods without any external influence.
4. When Moving non-perishable food, beverage, textile and clothing electronic, plastics, consumer packaged goods, machinery, etc.
5. Relocating household goods i.e. furniture.
6. Transporting small machinery and equipment from the warehouse to the site.

What are the Weight Limits for Dry Van Loads?

Dry Van Trailers come in different sizes and materials. They are mostly made of iron, galvanized steel, aluminum, and hardwood.

A standard Dry Van Trailer is usually 53 feet long. It can carry a weight of between 42000-45000lbs however, most drivers prefer a maximum of 44000 lbs.

A 48’ trailer can carry 24 standards 48” x 40” pallets while a 53’ trailer can carry 26 standards 48” x 40” pallets.

What are the Specifications of a Dry Van Container?

Dry Van Container specification include:

1. Certification- CSC
2. State- New
3. Material –Corten steel
4. Container type- 20ft dry van shipping container
5. Availability- rent, lease, or buy
6. Maximum load- 28480 kg
7. Maximum weight- 30480 kg
8. Dimension (Internal) – length-5898mm, width- 2352mm, height-2393mm

(External)- length- 6058mm, width 2438, height 2591mm

What is the Difference Between Dry Van vs Reefer Shipment?

Dry Van doesn’t have temperature control or any other climate alteration equipment hence it can’t be used to haul perishable goods. It’s convenient as it allows freight consolidation.

Conversely, reefer shipment is a trailer for transporting perishable goods that need to be at a specific degree during transportation. It’s a complex mode of transport.

Which is Better Between New vs Used Container for Dry Van Shipping?

Different people have different tastes and preferences. For some people buying a new shipping container is important. However, for others as long as it serves the purpose, they don’t mind the dents and the faded paints.

Before purchasing a container, you need to decide which one works for you. It’s worth noting ‘new’ containers don’t come fresh from the factory.

Instead, the container is manufactured, loaded with goods then shipped to the final destination. After the shipment has been unloaded, it’s listed for sale as ‘new.’ In other words, it’s a one-trip container.

Below are factors that may help you make the decision:

1. Container condition- If you want an aesthetically pleasing container, go for a new one, it’s usually in good condition. Old ones often have dents and surface rust.
2. New containers have a longer life span (of up to 30 years if handled with care). While that of old ones is shorter due to exposure to multiple trips, heavy luggage, and chemicals.
3. If you intend to use containers for living space go for new ones. They have not been exposed to chemicals that may be harmful to your health.
4. Essentially new containers are costly compared to old ones. However, they come with high locking gear, a lock box, and new forklift pockets.
5. Choose a container depending on the use. You can easily modify new containers than old ones especially if you want to use them as stalls for businesses.

You can still buy old containers if you don’t mind the dents and renovate them.

Takeaway; whether you choose a new or old container, there is no wrong choice. Both have pros and cons.

Most important thing is to go for one that serves you best. Remember to choose your battles wisely.

How Much is Dry Van Rental Cost?

The rental fee depends on the nature of the container, whether it is old or new.

You tend to pay less for an old container compared to a new one. Rental fee ranges between $300-600 per month.

What are the Benefits of Renting vs. Buying a Dry Van?

Renting a trailer is akin to renting an apartment.

You pay your landlord rent monthly in exchange for a house.

He/she takes care of maintenance issues, security, water, etc. It’s the same as renting a truck; an apartment with wheels.

Below are some of the advantage of renting over buying a truck:

1. Dry vans for rental are readily available.
2. It’s affordable- while renting a space you only need monthly payment. Whereas buying you need a lot of money that may force you to take a loan.

Also rented trailers don’t need a down payment. Companies only need a damage deposit that may be refunded at the end of your lease if the truck doesn’t incur any damage.

1. Renting a trailer saves you from the process of registering, inspecting, and insuring a container after purchasing, which is time-consuming.
2. With renting, you can hire a space only when in need. buying on the other hand, the truck becomes yours forever even after the business is over.
3. Technology keeps changing, when you rent a trailer, it’s easier to upgrade compared to buying one.

Where can I Find Dry Van for Sale?

You can get old or new trailers either for rent, lease, or buy from trailer dealers online.

What is a Dry Van Trailer?

It’s a box that is enclosed on all sides used to haul non-perishable goods in large quantities. Typically made of iron, hardwood, aluminum, and galvanized steel.

What are the Types of Dry Van Trailers?

There are two common types of Dry Van Trailers which include:

1. General trailer which is 53Ft long
2. Pup trailer which range between 26-29Ft long

What are the Best Practices for Packaging Goods for Dry Van Shipping?

Packaging is a very important process in freight shipping. It can make or break your business.

Here are a few tips you can apply while packaging your cargo:

1. Palletize cargo.
2. Use new packages such as corrugated cartons that are strong enough to withstand the weight of your cargo. One with a reinforced water-activated tape.

You can also add another layer of X-pad on the bottom, sides, and top of the shipment.

• Carefully place fragile goods at the center and cover them with a cushion or a bubble wrap.
• Slip the package in a bigger one, fill the empty spaces with an air pillow or X-pads.
• Seal the boxes with water-activated tape; it protects the box from opening during shipping.
• Break heavy shipments into several boxes to avoid overloading one box.
• Once you’ve done all this, shake the package. If there is any kind of movements. It’s not well done. Open and repackage.

Do Dry Van Shipments Require Special Handling?

The answer is yes. Ideally, all items should be handled with care so that they can get to the final user in goods state.

It doesn’t mean that because Dry Van shipments are non-perishable they should be handled anyhow. The shipment may be made of glass which is super fragile hence must be handled with care.

Is Dry Van Shipping suited for Out of Gauge (OOG) Goods?

Out of gauge goods are oversized shipments that can’t fit the standard shipping container i.e. aircraft parts.

Dry Van Shipping is not best for transporting OOG cargo reason being it’s enclosed hence the goods can’t fit. While shipping OOG goods, consider using a flatbed or open box shipping.

How are Dry Van Shipping Rates Determined?

Companies determine Dry Van shipping rates according to:

1. Mileage
2. Season whether peak or off-peak
3. Availability of truck lane
4. Cost of fuel
5. Type of trailer needed
6. Type and weight of freight either FCL or LCL.
7. Demand and supply

What is the Average Dry Van Shipping Cost?

We can’t really give an exact figure.

Average rates are obtained from data rate reviews which highly depend on the supply and demand cost.

The rates rely on how much freight there is to haul compared to amount of truck space available, along with factors mentioned above

Which Factors Affect the Cost of Dry Van Shipping?

The cost of Dry Van Shipping is affected by the following factors:

1. Delivery Distance- the further the destination the higher the cost.
2. Demand and Supply- Demand seasons are the produce seasons that start from spring to summer.
3. Availability of Truck Drivers- the fewer the drivers the higher the cost of shipping.
4. Type of Freight Shipping whether it’s FCL or LCL.
5. The weight, density, and freight rates of your cargo.
6. The cost of fuel at a given time.
7. Additional services like same-day shipping, shipment paring, high-value cargo protection services, etc. may affect the cost of shipping.
8. Unexpected events like natural disasters.

How do I Find the Best Dry Van Freight Rates?

There are many shipping methods in international trade, settling for Dry Van Shipping can be a relief.

However, there are so many companies to choose from meaning finding the best rates can be another hustle.

Here’s how you can find the best rates:

1. Use online rate quote engines available on most companies’ websites. Request for a quote and receive it in minutes.

There is room for a bargain with online quoting. In case you don’t agree with the initial quote, submit your name and the amount you want to pay.

The company will review and get back to you within 5 minutes.

If the company accepts your quote, proceed with the process, if not, use the initial quote.

Companies may or may not accept your quote, but at least you tried.

1. Due diligence: examine the financial records of the company you have chosen before starting your business. Its goods for your safety.
2. Freight rates may differ from one company to another. Go for the one that fits you best without compromising on the quality of services needed.
3. There are peak and off-peak seasons in international trade, avoid shipping goods during peak season and holidays. Prices are usually high.

What are the Common Dry Van Shipping Challenges?

Every shipping method has pros and cons. Here are some of the cons of Dry Van Shipping:

1. It has no temperature control equipment hence it can’t transport goods that need refrigeration.
2. It lacks insulation hence you can’t alter the temperatures outside the trailer.
3. It’s mostly made of hardwood floors which are prone to moisture and condemnation. It can be damaged by the weather or cargo itself.

Dry Van Shipping has few cons compared to other shipping methods. It still remains to be the best and most affordable means of transport in international trade.

How can a 3PL Improve My Experience during Dry Van Shipping?

Third-Party Logistics always come in handy in international trade. They improve your shipping experience by:

1. Enables business transparency in terms of shipment, transaction, and operation.
2. Provide communication.
3. Provide visibility of shipment to the customer through tracking.
4. Provide customer care services.

Under Dry Van Shipping, What Defines Buyer/Seller Responsibilities?

Buyer and seller’s responsibilities are clearly stated on Incoterms. Here are some Incoterms that apply to Dry Van Shipping:

1. EXW (EX Works)- goods are available at the seller’s place and the buyer is responsible for all the charges.
2. FCA (Free Carrier) –The seller supplies the goods cleared for export to the first carrier mentioned by the buyer.
3. CPT (Carriage Paid To)- The seller pays for the carriage of goods to the agreed location. Risks are transferred to the buyer once goods are handed to the first carrier.
4. CIP (Carriage and Insurance Paid To)- the seller pays for carriage and insurance to the agreed destination. Risk is transferred to the buyer once goods are issued to the first carrier.
5. DAT (Delivery at Terminal)- The seller pays for the cost to the terminal apart from fees related to import clearance. He/she bears all risks up to the point the goods are unloaded from the terminal.
6. DAP (Delivered at Place)- it’s similar to DAT. Only that the seller assumes risk until goods are ready to be unloaded by the buyer.
7. DDP (Delivered Duty Paid) –the seller is responsible for delivering goods to the mentioned destination and paying all the costs including import duties and taxes

Can I Buy Insurance for my Dry Van Shipment?

Yes, you can. Cargo insurance may protect your goods against inevitable losses or damage that may occur during transportation.

However, the incoterms you choose may determine who incurs the payment. If you choose CIP, the cost of insurance will be incurred by the seller.

What Precautions do Carriers Take to Keep my Dry Van Freight Safe?

Despite the fact that Dry Van Shipping is considered the safest method, carriers take further actions to ensure the safety of the freight.

They include:

1. Verifying the packaging of goods once they get to the port.
2. Creating space for goods and arrange them orderly.
3. Palletizing cargo.
4. Fastening cargo to the floor and walls of the trailer with ratchet ties to prevent movements during transportation.
5. Covering goods with a protective blanket to shield them from dirt and dust accumulation.

What are the Paperwork Requirements for Dry Van Shipping?

Dry Van Shipping paperwork are the same as any other shipping method.

They include:

1. Proforma invoice
2. Bill of Lading
3. Commercial invoice
4. Certificate of origin
5. Incoterms
6. Letter of credit
7. Purchase order
8. Insurance certificate
9. Shippers letter of credit

How do I Choose the Ideal Dry Van Shipping Company?

When it comes to Dry Van Shipping companies, there are a pool of them. You may get confused in the process.

Here’s how to choose one that will suit you:

1. A reliable company has good customer care services i.e. quick response.
2. Check the experience and competency skills of the company. Ensure the company specializes in what you are looking for.

Check their level of experience. The longer they have been in the field the sharper they may be.

• • Logistics services- these are the most important services you require from a shipping company. Define what you require and go for a company that you can work with.
  • Freight carrier capacity- this is important if you ship a lot of goods. You should consider a company with trailers that can handle the weight.
  • Lastly, choose a company that charges affordable rates without compromising on the quality of the services.

How do I Track Dry Van Shipments?

It’s normal to have the desire to monitor the entry, stay, and exit of your cargo. It’s possible if you consult a 3PL or a trailer tracking company.

They have systems that provide you with live freight updates of your shipment.

How does Customs Clearance for Dry Van Cargo work?

A customs broker can help you with customs clearance all you need to do is provide correct documents. You will be blamed for any false information provided.

If applying DDP terms, once the shipment leaves the port, the carrier sends an arrival notice to the entity mentioned in the Bill of Lading.

Cargo undergoes screening, may also be inspected by customs along the way. The Customs fee is paid by the person responsible for customs clearance.

At Tj chinafreight, we will help with all your freight forwarding services from China.

Contact us now for all your shipping needs from China.

If you have any questions about drop and pick, you find the answer right here.

Keep reading to learn more.

What is Drop and Pick Meaning in Logistics?

Drop and pick is when truck driver delivers a full container at a warehouse and leaves with a different empty container.

Also known as drop and hook, it is a common logistics practice with large volume full container load.

How does Drop and Pick Work?

Drop and pick starts when a truck driver delivers a full container to a warehouse for unloading process.

Once the container is offloaded, the driver then proceed to pick up a different empty container before departing.

Drop and pick can also involve dropping empty container and leaving with a full container at the same time.

Generally, drop and pick process involves container exchange in both cases.

When is a Drop and Pick Necessary?

Drop and pick services is mostly necessary for large shipper companies which receive high number of freight deliveries.

This option gives them time to unload and load cargo.

It also saves them money that would otherwise be spent when live loading or unloading.

What is the Benefit of a Drop and Pick?

Drop and pick process is preferred when it comes to high-volume delivery logistics because it is less costly and efficient.

It allows both shippers and carriers to plan for their delivery and shipping process seamlessly.

Benefits to Shippers

Minimal Labor Requirement

In drop and pick logistics, shippers have enough time to load and unload a container at their warehouse. Therefore, they do not need to hire extra casual labor to assist with the process.

This is totally opposite in the case of live loading/unloading which needs more casual labor force to speed up the process.

Otherwise, the shipper will incur hourly detention charges for every extra time spent by trucker at the warehouse.

Saves Time

Time is saved because the truck driver drop offs the container and immediately picks up a ready different empty container.

This is unlike live loading and unloading which wastes truck drivers’ time as they wait for the processes to be completed.

Highly Flexible

Drop and pick option offers shippers’ flexibility with shipping and delivery schedule.

This is because they are able to load and unload containers in advance before the truck drivers arrive.

The truck driver only needs to arrive, offload the container and collect the empty one before leaving without scheduling delivery appointments.

Shippers who do not prefer drop and pick are forced to coordinate with carriers on delivery and pickup schedule.

This comes with strict conditions such as limited turnaround time, detention fee, etc.

Shippers are more likely to pay the extra charges due to unforeseen circumstances such as poor weather conditions and breakdowns.

Failure by the shipper to release the driver and containers within the allowed free time also attract penalty.

Benefits to Carrier

Less time wastage is equally beneficial to carriers as they are able to make several drop and pick trips.

Secondly, truck drivers spend less time at the loading and unloading points and more time on the road. This increases their earning potential as they are paid by the mile and not at the loading dock.

Additionally, the flexibility allows drivers to schedule drop and pick up times that are convenient for them.

They can choose early mornings or late evening and at night when traffic not heavy.

What is the Difference Between a Drop and a Drop and Pick?

In a drop the truck driver drops off a container at a warehouse for unloading and return to pick it up later.

In a drop and pick, the driver drops off a loaded container and collects a different empty container before leaving.

A drop is more costly because the truck driver makes two trips for the same container.

In drop and pick, the truck drivers make one complete trip hence it is cheaper.

There’s likelihood to incur detention cost in drop when the shipper does not unload the container within the free time.

Drop and pick saves shipper container detention cost since they have a readily available empty container for return.

Is Drop and Pick Service only Large Shippers?

Large shippers have enough facility space that allows truck to come in through one gate and exit through another.

This is because they have different dock doors designated for drop off and pickup hence avoiding congestion at one point.

Additionally, large shippers have storage yards that can be used to store loaded and empty trailers as they await pickup.

What is the Difference Between a ‘Drop and Pick’ and ‘Drop Pull Transportation’?

Drop and pick is delivery of a full container to your loading yard and picking a different empty one before departure.

Drop and pull transportation is whereby a tractor drops a trailer in a loading area and unloads it.

It reduces the cargo handling time, hence saving time and energy that would have been used.

Drop and pull involves a tractor and a trailer whereas drop and pick utilizes a truck.

The tractor and trailer are flexible and can be combined or separated as and when required.

Drop and pull transportation combines the use of data in its operations such as RFID, IOT, GPS in its management system.

This is not necessary in drop and picks process.

How Much Does a Container Drop and Pick Cost?

The cost of a drop and pick is calculated based on the distance covered by the trucker and container type.

The further the shipper location is from the port the higher the fee.

When using specialized containers such as reefers, the cost also goes up as compared to standard containers.

This option is however cheaper than live loading and unloading and drop services.

Which is better between Drop and Pick and Live Unload?

A drop and pick works well when you have containers being delivered after every few days.

This allows you time to unload your container and leave it empty for the next drop and pick cycle.

Live unload is whereby the truck driver drops off a loaded container and waits till it is unloaded to leave with it.

Logistics company offer free unloading time, beyond which an hourly rate is charged for every hour spent at your warehouse.

This makes a drop and pick option better and less expensive between the two.

How Do I Choose a Quality Drop and Pick up Service?

Since drop and pick is a grab and go process involving container exchange, quality service is key for a smooth process.

Research for drop and pick service provider companies and select a number of them.

Contact the shortlisted companies and request for a drop and pick quotation for your consideration.

Check all the listed services that the company covers on the drop and ship and terms of engagement.

Select a quote that covers most of the items that your cargo needs.

Additionally, find out about their equipment capacity as this will determine their ability to handle drop and pick.

If you are a large shipper and will need several deliveries within a short time, ensure the provider has the capacity.

This will avoid delays due to trailer shortage.

Quality drop and pick also relies on skilled drivers, request to see driver qualification if need be.

Is Drop and Pick Any Different from Drop and Hook Trucking?

No.

Drop and pick is also known as drop and hook in the trucking industry.

It is one of the most efficient freight delivery processes in shipping.

The driver simply drops the loaded container and hooks on a different trailer with an empty container then leaves.

This saves time for both parties, reduce cost for shipper and increase earning potential for carrier.

What are the challenges of Drop and Pick Service?

Drop and pick is one of the preferred shipping program by large shipper due to its efficiency and cost.

However, this service is not devoid of challenges just like any other delivery and pickup services.

One of the major challenges faced in drop and pick services is the availability of skilled truck drivers.

Trucks ferrying containers are long and heavy therefore, they need skilled and competent drivers to operate them especially at the loading points.

Aligning fifth wheel and kingpin can be a challenge to new drivers however, with practice they can get it right.

Drop and pick requires carriers to have more than one trailer at shipper’s facility at any given time.

This is because the driver just needs to drop off loaded container and move to pick up a different empty container.

The cost of trailer fleet is very high and need high financial commitment from the carrier in order to be efficient.

Some shippers have smaller facilities that make it hard to have all containers ready for pick up easily accessible.

As a result, a loaded or empty trailer awaiting pickup maybe at the furthest end when the truck arrives.

This forces the shipper to find other ways to move it to the front which is usually at an extra cost.

Are there Container Restrictions in relation to Drop and Pick Services?

Before using containers in drop and pick, there are certain factors to consider with regards to container weight measurement limits.

Dry cargo use a 20-foot or 40-foot standard containers while cold chain cargo are ferried in reefers of the same size.

Three weight measurements that must be considered for every container in drop and pick services are rating tear mass and payload.

These measurements are usually indicated on the container walls at the door ends.

Rating weight is maximum allowed container weight together with its content.

A 20-foot container has a rating of 24,000kg while a 40-foot has 30, 480kg.

Tear mass is the container weight when empty.

This varies from one container to another depending on the construction material and technique used.

Generally, reefers have higher tear mass weight than dry cargo containers of the same dimensions.

A 20-foot by 8.5-foot weighs somewhere between 1,800 kg to 2,400 kg, 40-foot by 8.5-foot weighs between 2,800kg and 4,000kg.

High cube 40-foot dry container; 40-foot by 9.5-foot weighs between 3,900kg and 4,200kg.

The third weight to look into is the payload weight, this is the maximum permitted weight of container contents including Dunn age.

To calculate payload, you subtract rating weight form the tear mass weight (Payload=Rating-Tear Mass).

For example:

A 20-foot container with a tear mass of 2,400kg will have a payload of 21,600kg; (24,000kg-2,400kg=21,600kg).

The weight are important because they will determine if your cargo will allowed entry through a cargo terminal and use certain roads.

If the container surpasses the payload weight, you may be forced to offload your cargo, repackage, store or even drayage.

This will negatively affect your shipping cost.

Also, certain countries or even cities within the same country have rating weight limit.

It is therefore crucial to understand weight regulations for containers for different regions when drop and picking.

Do I need any Special Documentation for a Container Drop and Pick?

Before delivery is done by drop and pick, the cargo must have the following documents accompanying it:

Bill of Lading

This is a legal contract document between the shipper, carrier and the freight forwarding company.

It highlights the mode of transportation used in shipping and the routes to use.

Shipping cannot happen without this document and it must be stamped and signed by relevant parties.

Different types of bill of lading exist depending on the mode of shipping.

Packing List

This is a slip showing what is in the container, their weight dimensions, size, quantity etc.

It also contains the shipper’s address where the goods are to be delivered as well as their origin address.

Goods Insurance Certificate

This is very important to both parties. It shows if cargo is insured and the terms of cargo insurance, who takes liabilities, cost of goods insured, etc.

Goods on transit at are high risk of being damaged or stolen therefore, to mitigate such risk insurance is needed.

Commercial Invoice

It is a proof of sale between seller and the buyer (shipper) in this case.

This is needed as it allows shipper to know what items being shipped.

Customs Clearance

This is needed for goods to be allowed across any borders within or outside the country of shipping.

It shows that the cargo is compliant with the set customs regulation.

How do I Ensure Safety of Goods during Container Drop and Pick?

Insuring goods against damage or theft or loss, etc. all through the shipping process.

Having an insurance cover against your cargo will give you a piece of mind in case of any eventualities.

Installation of security cameras at the loading facility in designated areas and ensuring strict visitation policy to the premise.

This will deter fraudulent pick up from unknown drivers posing as carrier drivers.

Have trucking services that enables you to have freight visibility from end to end.

Truckers are fitted with GPS systems that enable the shipper and the carrier to monitor driver movement at all times.

The carrier can install a remote vehicle disabling system on trucks on transit and switch it off in case of tampering attempt.

Additionally, shippers can have their goods tagged using RFID technology which can be integrated to their supply chain management system.

A RFID system offers cargo visibility at all times from anywhere as long as you are logged in the system.

Another way of ensuring security is by carriers having details of all their truck drivers together with their photo per truck.

This information is then shared with the shipper in advance so that they have a record of the driver beforehand.

Do Carriers Assume Shipment Liability during Drop and Pick Services?

Carriers do take insurance cover for goods in transit.

This is because they offer the drop and pick services and the shipment liability lies with them.

They are absolved of any liability upon delivery of the cargo.

Does Cargo Insurance Cover Shipments during Container Drop?

Shipper can request for an insurance cover for cargo during drop to mitigate the risks of damage and theft.

Strict terms and conditions are spelt out due to the increased risk factor.

What are the Common Container Specifications for Drop and Pick?

Different types of containers are available for use depending on the type of cargo being dropped and picked.

The containers are available in 20-foot, 40-foot and 40-foot high sizes, therefore, you choose a container that suits your goods.

The most common container specifications available include:

1. General purpose (standard) container
2. Flat rack
3. Refrigerated containers (reefers)
4. Open top container
5. Double door containers
6. Insulated containers
7. Open side containers
8. Tank containers
9. High cube container
10. Half-height containers

What help do Freight Forwarders offer in relation to Container Drop and Pick?

Freight forwarders can assist shippers to plan drop and pick up in case they do not understand how it works.

They will help you with all the cargo handling and paper work.

These may include packing, supervising loading/unloading, warehousing, and customs clearance, amongst others.

How can I find reliable Freight Forwarder for my Shipment Delivery?

There are several ways of searching for reliable freight forwarding companies such as:

• Through referrals.
• Online searches and visiting their websites.
• Listed freight forwarding companies through directories.
• Company posters at the terminal ports, airport, train station or sea port.

At Tj chinafreight, we will help you with all your shipping services from China.

Contact us today for all your freight forwarding needs from China.

If you have any question about dry run, you will find the answer right here.

Keep reading to learn more.

What is Dry Run in Trucking?

Dry run illustrates the unsuccessfulness of a trucker in making a delivery or pick up of a shipment.

As a result, an extra trip is bound to happen.

However, the extra trip attracts another full trucking fee for the shipment.

Why do Dry Runs Happen in Shipping?

There are two reasons why dry runs can occur in the event of dealing with a shipment.

These are;

• During congestion at the port
• A delay in the pickup of the cargo from the port of arrival

Congestion; this is more prevalent during a peak season and more so during holidays that can affect shipping like the Chinese new year.

The congestion creates a hindrance in accessing the shipment.

During the Chinese New Year, goods and shipping become numerous due to the high demand for goods from businesses.

This is to ensure the businesses do not run out of stock during the celebrations that last almost a month with all shops and manufacturers closed.

Hence the increased congestion before and after the Chinese new year can result to dry runs.

Moreover, owners may delay to pick up the cargo shipment from the ports on time.

Hence forces the trucker to engage in another trip, which results to the possibility of making a dry run.

What is the Difference between Dry Run and Pre Pull?

Pre-pull is the process which a trucker picks up a container, instead of making a delivery, it is given storage space at the truckers’ yard overnight.

In dry run, the truck completely fails to make a delivery or pick up of the cargo.

While in pre-pull, the cargo gets picked from the port prior to the last free day of the cargo at the port.

Are Dry Runs in Shipping Avoidable?

Yes, dry runs are avoidable.

However, this is completely dependable on the shipping management.

Good shipping management creates room for better planning for shipment pickups and deliveries.

Consequently, dry runs are avoided.

Moreover, there are instances where dry runs are inevitable.

Some factors are completely out of control from the shipping management.

For example, shipping managers cannot alter the Chinese New Year event which results to many instances of dry runs.

What is Dry Run Fee?

Dry run fee is the amount charged to the shipper following a miss in pickup or delivery of a cargo.

This is possible due to the information gap that exists between the shippers on the situation at the port.

This results to failure to pick up the shipment form the port yet bookings for a truck to pick up the cargo is already underway.

This fee is determined by the freight carrier depending on factors like drivers’ time and gas.

How much is Dry Run Fee?

Following the nature of dry runs, the fee is most dependent on factors like drivers` time and gas spent. However, this factors may be overlooked.

As a result, the dry run fee is not dependent on the fact that the truck covers a longer or shorter distance from the freight terminal.

Hence these factors cannot grant a more or less expensive dry run fee.

How do Dry Runs Affect Shipping?

Dry runs increase the cost of shipping.

This is because of the extra fee on the extra trip made to make the dry run tip.

Additionally, dry runs can affect the delivery of shipments in the event there is a delay at the port.

The truck has to wait for the port to clear the pickup hence can attract more fees.

However, the delivery of the goods will be efficient since loading is made efficient.

Moreover, dry runs become efficient when a shipper is in need of the cargo urgently.

The truck arrives earlier and stays overnight during which it is being loaded.

It is then set for departure very early in the morning to facilitate working within the timelines of the shipper.

Just like any other transportation means, cargo theft and damage are sometimes inevitable. However, to efficiently counter this, provide an insurance plan for your shipment.

What is the Difference Between Dry Run Vs Drop and Pick Vs Pick and Drop?

A dry run involves a truck with an empty trailer with the intention of loading cargo.

Thus the truck driver makes an empty trip to shipper’s destination to load for required cargo.

In drop and pick, the truck makes a trip to the shippers’ destination, loaded with the cargo. However, due to the nature of the cargo and the time, the driver gives the shipper time to unload the cargo and later comes back for the container.

In Pick and drop, the truck driver makes a trip to load the required cargo, makes it to the destination site, and unloads the cargo.

Unlike the drop and pick, pick and drop is time conscious and does not leave the container to come and pick up later.

How Can I Avoid Dry Run Fee?

One of the surest way of avoiding dry run fee is to arranged earlier pick up dates from the port prior to the last day.

Additionally, freight carriers can as well dismiss the cases of a dry run.

However, this is subject to discretion between the carrier and the owner of the cargo.

Nonetheless, the most certain way to avoid dry runs is to be time conscious with the pickup date of your cargo.

What is Cargo Readiness and how does it Influence Dry Runs in Shipping?

Cargo readiness refers to the specific time and date a shipper`s cargo is ready for transportation.

Being sure of the time and date the cargo is ready, allows the shipper to book trucking services early in advance.

As a result, events of dry runs are as well avoided.

Nonetheless, the calculations might go amiss.

This happens when the predictions of a shipper on the time and date are interfered by unforeseen factors like congestion.

Congestion results to delays which reflects to having dry runs.

Which Elements determine whether Cargo is ready for Transportation?

Cargo readiness is thus under the influence of three factors.

These are

• Availability of the cargo
• Cargo packaging
• Full cargo documentation.

Availability of the Cargo

One of the factors that guarantee the readiness of a shipment is its availability.

This is in the sense that the shipment fulfills the agreements between the buyer and the seller.

Availability of the cargo assesses the quality and quantity of the cargo as per the specifications of the buyer.

This extends to making sure that the full order cargo is present.

The invoice and packing list create an easy time to check for the availability of the cargo for shipment.

Cargo Packaging

According to shipping rules, all shipments must adhere to the outlined shipping standards.

This includes packaging the cargo in a manner that protects it from damage in the course of transportation.

To illustrate the strictness of this rule, if a shipment does not obey the packaging rules.

It does not receive clearance for shipping, until the correct packaging is implemented.

Additionally, there is sea cargo packaging and air freight packaging.

Make sure you choose the right packaging depending on the type of transportation you choose.

Full Cargo Documentation

These entails being in possession of all documents pertaining your cargo.

From having the invoices to the clearance certificates for easier transport of your cargo.

Additionally, do not forget any licenses or permits applicable to your shipment.

The above three requirements only determine the cargo readiness.

This does not mean the cargo is not subject to a customs clearance procedure.

The authorities must conduct a customs clearance in order to fully commence on the shipping.

Additionally, when availing packaging material to the freight warder, you should be aware that the material affects both size and weight of the cargo.

Ensure you provide the acceptable packaging material.

Consulting with your freight forwarder on the same is important.

How do I Enhance Communication in my Supply Chain to avoid Dry Runs in Shipping?

Dry runs are costly.

As a result, any means necessary to evade such costs and ensure that shipments arrives to its destination is applicable.

One of the ways to especially evade dry runs is through communication.

To enhance communication between shipper and carrier can be done through;

Creating Real Time and Transparent Communications.

This translates to highlighting of major events that could affect shipping hence result to dry runs.

Additionally, transparency closes the information gap that exists between the carrier and shipper on the time lines to pick up the cargo.

Most carriers miss on the exact arrival and pick up dates of the cargo due to lack of exact date and time from the shipper.

This arises in the event there are some changes at the port made know to the shipper and the shipper fails to inform the carrier.

Enhancing Secure Data Transmissions for Communication Purposes.

This helps to reduce cases of lost information regarding cargo pick up dates and arrival at the port.

How does Port Choice Influence Shipping in Relation to Dry Runs?

It all depends on how busy the port is and the management of shipping in the port.

A port that has high inflow of shipments and a poor management most likely attracts dry runs. However, sometimes it’s not due to management.

There are peak seasons where the ports are bound to be congested.

Congestion is a major factor that contributes to dry runs.

Therefore, as much as a port is more credible, reliability is also important when determining the port.

The carrier should opt for a more reliable port in terms of vicinity as well other factors that could evade accruing dry run fees.

Are there Exceptions to Dry Run Fees?

Yes.

• For shipments cancelled at specific hours (carriers sets the ETA window) before pick-up
• If the carrier makes an ETA with an accompaniment of a written letter like an email to confirm on dry fee charge
• Availability of a written bill of approval for the dry run by the carrier.

What is a Deadhead Charge in Logistics?

Deadhead refers to the scenario where a truck is travelling without a trailer.

In most cases the truck drive is heading to pick up a load or is from unloading a cargo.

Either way, the truck attracts fees payable to compensate the driver`s effort and the gas spent to make the travel.

The fee charged is known as a deadhead charge.

The carrier gets a notification confirming the arrival of a deadhead truck, and thus makes arrangement to cater for the charges.

Do Carriers Charge a Dry Run Fee in Addition to a Deadhead Charge?

No. Carriers are not allowed to charge the dry run fee and the deadhead fee to the same truck.

The carrier chooses one type charge to execute.

What is the Relationship Between Dry Run and Detention in Shipping?

In the event a truck makes a dry run, and further delays cause the truck to stay more hours than the allocated time, it attracts detention.

As a result, it is important to ensure further delays are short-lived and are within the time line to avoid detention fees.

Detention fee is the charge evaluated when the truck is held at the pick up or delivery location longer than the allocated time.

What is Shipping Management?

Shipping management ensures that all activities for shipping, such as maritime supervision, management of ships, the registration of the ships, maintenance are in place.

Shipping management generally caters for all the needs for shipping through the vessels.

How does Shipping Management Reduce Dry Runs?

In light to shipping management, there is a co-relation to dry runs. Good shipping management translates to less incidences of dry runs.

The shipping management keeps tabs on the maritime traffic on ships.

As a result, the management is aware of impending congestions at the port.

This allows the shipping management to make effective communication to the carriers who in turn inform the shippers of the congestions.

This affects the decision making of booking trucks due to possible causes of dry runs at the port.

Additionally, the shipping management makes efforts to inform owners of the cargos in the ship of the arrival dates to evade delays caused by late pickups.

Does Dry Run Affect all Kinds of Shipments?

Dry runs are common with road freights.

This is because trucks are most reliable to make the final delivery of the cargos to the owner.

It is rare to experience dry runs in air freights and sea freights, due to the expensive nature. However, delays and congestion at ports in air freights especially are well managed.

What is a Drop Trailer Program?

Drop trailer refers to a truck that helps drop off shipments at defined destinations.

The trailer has an allocated time to wait for loading or unloading of the cargo, before departure.

According to law, truck drivers are supposed to take a break after a certain period of time.

The drop trailer program accommodates that rest time.

Additionally, the drop trail program facilitates loading and offloading of heavy freight efficiently.

What are the Benefits of using Drop Trailer Programs in Relation to Dry Runs in Shipping?

Drop trailer program is convenient and thus comes with the following benefits;

The Drop Trailer allows for Better Service Levels

This is because of the rest time drivers acquire.

Even during the event of a dry run, drivers still need resting time.

Drop Trailer Program offers Good Time Management Skills

This owes to the electronic logging devices that help keep track of the drivers.

As a result, shippers account for any extra time wasted during loading or unloading the cargo.

It enhances accountability for time wastage at the same time ensures truck drivers arrive on time and get some rest.

Convenient to Shippers and Warehouse Workers

In most scenarios heavy cargo takes time to load or unload.

Especially in a warehouse where the workers are less and the cargo is huge.

Drop trailer program allows the trucks to drop the containers, and later pick it up, hence offering ample time to shippers and warehouse workers to unload.

Dry runs as well can help facilitate convenience.

In the event the cargo is ready, the freight forwarder makes preparations to make the cargo available.

Dry runs are thus convenient to shippers who wish to have their cargo earlier.

Hence the truck avails it earlier, makes an overnight stay.

During this time the freight company loads the cargo and the truck is ready for departure the next morning.

Reduced Shipping Costs

During dry runs, the cargo can avoid demurrage fees by being loaded unto the truck.

Same applies to the drop trailer program.

Cargos have a limited time to stay at the shipping ports.

Once this time lapses, there are fees attached.

To avoid this, the drop trailer program allows shippers to evade those detention charges from the port.

Same case applies when using the dry runs services.

As a trusted freight forwarder in China, Tj chinafreight will help you with all freight forwarding service from China to any global destination.

Contact us today for all your freight forwarding services from China.