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

1. Shipping Instructions (SI) is a document provided by the customer to the carrier containing the details of the goods to be shipped and the requirements for their actual transportation.
The SI contains the basic information needed to draft a Bill of Lading (B/L), such as:
Booking No. or Bill of Lading No.
Bill of lading party, including shipper, consignee, notifying party
Vessel or Voyage or Both
Place of receipt
port of loading
port of discharge
final destination
container number
seal barcode
mark
cargo description
quantity
Weights and Measurements
Bill of lading type
service agreement
Payment terms (prepay or collect)
Home Bill of Lading (HBL) number and information

2. 4 things to remember when submitting shipping instructions
Here are some further tips and tricks to make submitting shipping instructions smoother:

Your cargo description should always match the item being shipped and shipped. When we are notified, we are obliged to report any unlawful or prohibited descriptions to the appropriate authorities.

You must choose the HS code that correctly describes the goods you are shipping. Choosing an incorrect HS code can lead to trouble for the destination authorities.

Double check that all details shown on the shipping instructions are correct.

The items in your description of the goods should be the same as those stated at the time of booking. Discrepancies may mean a recalculation of your shipping charges, which will cause further documentation delays.

Shanghai
Shanghai has different industries. For example, it is known for its excellent steelmaking capabilities. So it’s no surprise that the city is famous for its auto industry.
Major companies such as Volkswagen and General Motors have agencies in the city.
It is a center for the manufacture of plastics, integrated circuits, vinyl, microcomputers and cell phones.
The city has a huge and important port for shipping packages; every year, many packages are sent to the rest of the world through this port.

Port of Shanghai
The port of SHANGHAI is the most important port worldwide in terms of TEUs traded with more than 35MM TEUs in 2014. The port of SHANGHAI is currently managed by SHANGHAI International Port, a public company owned by the SHANGHAI Municipal Government.

Longest transit time to Shanghai
The longest transit time to ship a container to Shanghai is the route Mobile – Shanghai, with an average of 58 days. The next longest routes are Louisville – Shanghai, with an average of 54 days and Savannah – Shanghai, with an average of 54 days .

Shortest transit time to Shanghai
The shortest transit time to ship a container to Shanghai is the route Charlotte – Shanghai, with an average of 4 days. The next shortest routes are Greensboro – Shanghai, with an average of 4 days; and Huntsville – Shanghai, with an average of 4 days.

Customs clearance, duties and paperwork
Except for paperwork or documentation, all shipments passing through customs are subject to duties and taxes. Customs fees are usually paid by the consignee upon entry and are usually contacted by the local customs officer to agree to pay.
To clear your package through customs, you will need a customs invoice detailing the contents, country of manufacture, individual value of each item and reason for export.
Fees range from 20-30% of the value of the shipment. However, if the value of the goods is less than $500, your package will be exempt from duties and taxes. Shipments over 1,000 yuan need to go through formal customs clearance. This means your shipment may be delayed while this process is in progress.
Most importantly – all items require a tariff code before being sent to China. Do not you know? This is the place to go.
Most customs paperwork will include fields to enter this information. ParcelHero simplifies the process by automatically generating this file based on the information entered when booking. Then determine the duties and taxes you need to pay based on the value of the item and the reason for export.

Shipping Tip: On average, the delivery time for express package delivery services to China is 3-4 days, depending on the address. This average doesn’t take into account potential customs delays, service disruptions, or shipping to remote parts of China – so ship your packages early!

The advantage of exporting
Your company’s reasons for considering exporting are very compelling; here are a few key advantages of exporting:
Increase sales and profits. Selling goods and services to markets the company has never had before drives sales and increases revenue. In the long run, the additional overseas sales will boost overall profitability once export development costs are covered.

Enhance domestic competitiveness. Most companies are already competitive in the domestic market before entering the international stage. Being competitive in the domestic market helps companies acquire some strategies that will help them in the international arena.
Gain global market share. By going international, companies will participate in the global market and take a share of the huge international market.
diversification. Selling to multiple markets allows companies to diversify their business and spread risk. The company will not be bound by changes in the domestic market or the business cycle of a particular country.
Lower unit cost. Capturing additional foreign markets often expands production to meet foreign demand. Increasing production often reduces unit costs and leads to greater utilization of existing capacity.
Compensate for seasonal demand. A company whose product or service is only used in a particular season in the country may be able to sell its product or service in foreign markets in different seasons.
Create potential for company expansion. Companies involved in the export business usually have to have a presence or a representative office in the foreign market. This may require additional staff, leading to expansion.
Sell ​​excess capacity. Companies that overproduce for any reason may be able to sell their products in foreign markets without being forced to give deep discounts or even dispose of their excess production.
Gain new knowledge and experience. Going international can generate valuable ideas and information about new technologies, new marketing techniques and foreign competitors. The proceeds can help the company’s domestic and foreign operations.
Extend the product life cycle. Many products go through different cycles, i.e. introduction, growth, maturity and decline phases, i.e. the end of their utility in a particular market. Once a product reaches its final stage, i.e. matures in a given market, the same product can be introduced into different markets where the product has never been marketed.

Disadvantages of exporting
“”This all sounds great,”” you might be thinking, “”but easier said than done.”” You’re right — exporting isn’t an easy, quick way for businesses looking for long-term, sustainable success solution. But for those committed to growing into successful exporters that are internationally competitive, these disadvantages pale in comparison to the opportunities offered by international trade.
Here are some common downsides of exits I’ve heard of, and the myths surrounding them.
Exporting is risky.
It’s true – it’s certainly a risk! International trade is more complicated than sticking to the domestic market; however, the same is true on the other hand. When you don’t try to export, you limit your company to 5% of your addressable market because it’s too difficult or too risky.
And in some markets, such as Canada, the risks are nearly identical to those of selling in the US. Every international market is different, and if exporters make use of available resources, perceived risk can be reduced or eliminated.

Tax considerations when exporting
Depending on whether you sell to other European Union (EU) countries or export your goods outside the EU, you will have different VAT responsibilities.

If you sell goods to other countries in the EU, you must keep records and submit details of those sales on your VAT return. If you have high sales to EU countries, you must complete the Intrastat Supplementary Declaration.

If you sell products to countries outside the EU, you must keep documents that can serve as export certificates. These must be determined:

exporter
customer
Goods and their value
export destination
Mode of transportation and route.
In both cases, VAT on most goods you export is zero-rated. You should check with HM Revenue and Customs (HMRC).

What is project cargo?
What is project cargo and how is it shipped? Project cargo, also known as project transportation or project logistics, is the transportation of large, complex, or high-value equipment, including bulk cargo, that can be transported by land, sea, or air. The process involves single or multiple transports with the help of cranes, trucks, railroads, planes and ships. Additionally, project shipments tend to have specific time frames or specified delivery dates, making these shipments some of the most complex and detailed projects in the entire logistics industry.

What does the project freight service include?
Not all industries need these services, but several definitely rely on them. Perhaps the best way to understand what project freight means is to mention industries that rely on the expertise of project freight forwarders.
First, we have oil and gas, because flammable materials are notoriously difficult to transport. Moving them requires a lot of logistics. The same applies to mining and quarrying, power generation, infrastructure projects and renewable energy, such as wind turbines.
By hiring a project freight forwarder, businesses belonging to any of these industries can benefit from using several important services. To move bulky loads, you need multi-axle heavy-duty haulage equipment suitable for the specific task.
There are many other professional services such as project planning and management of all necessary licenses. Let’s not forget project cargo insurance, which is essential for transporting such sensitive and often dangerous goods.
Crane service and engineering transportation programs are also critical. Finally, planning customs clearance agreements for international shipments is an important part of project freight services.

Which industries are mainly involved in project cargo transportation?
Engineering cargo transportation is used in many industries, but the transportation needs of specific industries have continued to grow at a faster rate over the past few decades. Global Forum projects for wind farms are expected to grow in Asia, North America and Europe. Nuclear power plants in China, India, South America and the Middle East are also driving growth. The demand for mining-related equipment is increasing due to increased demand for metal commodities. Global natural gas consumption is expected to grow by nearly 50% by 2035. The vast U.S. shale gas resources are also one of the most promising factors in our study of project freight scheduling needs.

What challenges does project freight face?
There are many freight forwarding companies with expertise in transporting project cargo. Still, not all of them are competitive, as there are some persistent hurdles to consider.
One of them is shipping costs. Expanding environmental regulations and changes in how the industry operates have resulted in higher costs for transporting project goods. Rising fuel prices are a significant variable, especially when shipping includes several different modes of transport.
Another issue with heavy equipment cargo is technological advancement. There is always room for improvement, but project freight lags in specific sectors.
A notable example is the often inefficient tracking of goods. Finally, customer expectations have risen over the years, so the shipping industry in general has had to keep pace with customer service.

The following is a to-do list in project cargo shipping:
1) Advance planning is key – initial shipping advice for shipping oversized or overweight cargo can save shippers and costs, provide certainty and reduce surprises. When planning ahead, allow enough time to coordinate shipping details.

2) Choose a quality shipping provider:
a) Have a quality engineering team
b) Have the financial strength to take certain risks and responsibilities
c) have a good track record, practical experience and country knowledge
d) Emphasis on proactive communication to maintain fast response time to changes/issues
e) Extensive knowledge of equipment, local transporters and manufacturers of equipment and materials, and quick and flexible access to expertise
f) Accuracy and honesty of pricing
g) Impeccable execution

3) Develop contingency plans – Unforeseen events may cause the initial shipping plan to fail to function properly, in these cases alternative plans should be developed to minimize and resolve the problem.

4) Continuous Improvement Work – There is always room for improvement in project cargo transportation. Tracking the results of completed project cargo shipments and developing potential areas of improvement can help future shipments produce better results.

scroll/scroll
Roll-on/Ro-Ro (often written RoRo) is often the easiest way to transport cars, motorcycles, trucks or any other type of wheeled cargo. This is the fast, efficient and most cost-effective way to transport cars or similar goods.

As you might guess from the name, roll-on-roll-off (RoRo) boats are designed to allow cars and other vehicles to be directly driven or towed onto a boat using their own wheels. Once on board, they’re securely fastened to the deck of the ship in a wind and water resistant boat – think of it as a giant underground car park. Click here to see the inside look of a roll-on, roll-on container.
If you just want to move an empty vehicle on your own, RoRo is the ideal mode of transport, it’s much cheaper than container shipping, although the downside of shipping this way is that you’re not allowed to bring any personal items with your cargo, except for a spare tire/ It has to be completely empty apart from the jacks/logs etc – all of which are considered “”part of the vehicle”” and can be traveled with the car as it would normally be in everyday use.

20ft/40ft container
If you’re moving abroad, you may need to ship extra items, tools, equipment or furniture along with your car, so it’s worth buying a 20ft or 40ft container and filling it with your car and other personal items.
At Willship, we typically ship vehicles in 20-foot containers. Once the vehicle is loaded into the 20-foot container, there is usually still enough room for a raffle box or a few boxes of personal items. You can also fill your vehicle with anything you like, as long as you keep a content list. If you want to see what can fit in a 20ft container, click here to see our article on how much space is in a 20ft container.
Shipping a car in a container is the safest option and the preferred option for valuable vehicles as it has the least chance of any damage during transit. However, container shipping is a more expensive option for moving cars.

Ro-Ro vs. Container Shipping: Cost Differences
As mentioned earlier, roll-on-roll shipping is often the cheapest shipping method, even when compared to the different container shipping methods. For example, a standard sized car costs $850 to ship from the US to Belgium by ro-ro, while container shipping costs anywhere from $900 to $2,000.

Let’s take a look at what determines the difference in shipping costs between different container shipping methods.

Drying Vessels vs. Tall Cube Drying Vessels
Dry cargo containers are used to transport most types of cargo, and the size and purpose of the container are largely determined by the container manufacturer, age, and eventual owner. There are 20′ and 40′ drying container types.
In contrast to drying containers, tall cube drying containers provide extra height. There are 40′ and 45′ tall cube drying containers.

Exclusive vs Shared Containers
If you choose container shipping, the cost of shipping your vehicle overseas will depend on whether you choose a dedicated container or a shared container. Exclusive container shipping is more expensive than shared container shipping. Also, it is by far the most expensive shipping method compared to other container shipping methods and roll-on/roll-off shipping.

Safety
One of the safest ways to sail around the world in almost the most popular ports. If you are shipping a brand new or luxury car, the container shipping method ensures that your car arrives without any damage. Workers load the car into a container, which is then secured with nylon, ratchet or wedge straps so that it doesn’t move during transport. In addition, wooden brackets are placed around the tires of each vehicle and nailed to the floor for proper fixation.
To save money, keep your extras like tires, maintenance machinery, etc. in your container. The container shipping method will ensure that your cargo arrives safely at the port of your choice. These containers meet strict regulations to ensure that they are structurally sound, waterproof and do not allow damage to components.

What is RORO shipping?
When you ship a vehicle internationally, your vehicle is likely to be shipped by ship. There are several different ways to load vehicles onto ships, the most common option being LCL. Containers are available in 20, 40 and 45 feet. A 20-foot container can only hold one vehicle, so containers of the other two lengths are used more frequently to spread the cost of transportation among multiple vehicles heading to the same destination. If the vehicle you’re shipping requires maximum protection, a 20-foot container may be your best option. If that’s not an issue, you should consider consolidating it into a container with multiple vehicles. Another option is RORO, or roll-on, roll-off shipping. When it comes to RORO shipments, some destination ports may reduce the time required for unloading.

For a vehicle to be eligible for RORO transport, it needs to meet the following requirements:

it has to move under its own power
It cannot have any broken glass or missing windows
All tires must be present and inflated
Doors, trunk and hood must be able to close safely and securely
It does not cause significant damage to the body
There is no biological hazard nor any leaking liquids
Airbags not deploying
Vehicles that are flooded or suffer water damage often have additional requirements and fees. Contact us to see if your vehicle is eligible for RORO carriage.

The important thing to remember is that RORO will expose your vehicle to harsh environments.

Types of ro-ro ships
There are actually several types of ro-ro ships. they are:

LMSR – Large Medium Speed ​​Roll-Off Vessel is a vessel specially designed to carry military cargo. Some of them have been converted into civilian ships.

ConRO – A ConRO vessel is a RORO vessel in which RORO and LOLO shipping methods are used. The way it works is that the containers are stored on the roof of the boat, while the vehicles are stored below the deck and continue to travel.

RoLo – A RoRo/Landing vessel is a decked vessel that allows cars to roll up and down, but also has other decks that require the use of a crane to load and disembark cargo.

ROPAX – This is a ship that has a car roll-on/roll-off capability, but also has the ability to transport passengers. This is what ferries that transport cars are often called as.

Advantages of Ro-Ro
Ro-Ro ships have many advantages over conventional ships. Some of the advantages are as follows:

For shippers, the advantage is speed. This saves shippers a lot of time as cars and trucks can pick up directly at one port and leave at another within minutes of the ship calling.
It also integrates well with other transport developments, such as containers. The use of customs hold units minimizes delays across the border. Hence, it increases the speed and efficiency of the shipper.
The boat has proven to be very popular with vacationers and private car owners. It has made a great contribution to the development of tourism. With the help of ro-ro ships, a person can take his car from one country to another by sea.

in conclusion
Roll-on/Ro-Ro shipping is the most efficient and modern way to transport your vehicle to sea. The ability to transport cars like this changed the face of the auto shipping industry forever. Now you don’t have to worry about the crane moving your car and possibly damaging it. This also helps to speed up transit times for overseas shipments.

Out of Gauge (OOG) Cargo Meaning
The OOG cargo list is long. Some examples are very large vehicles such as luxury passenger cars, car trailers, aircraft parts, wind turbine parts, construction machinery, unusually large parts for power generation machinery, etc.

Also known as AIL (Aligned Indivisible Load), this type of oversized cargo exceeds standard container dimensions and can be too heavy to fit into a rectangular container such as a twenty-foot container (TEU) or a forty-foot container (FEU).
The sheer size and weight of this odd-shaped and odd-shaped cargo requires specialized heavy equipment to handle them for sea transport.
Such goods are easily damaged in transit unless they are handled with care and precision.

clear scope of work
Provide as much information as possible as early as possible. Origin, destination, commodity and shipping period are all good starting points. It would be better if you could provide more details – such as handling capacity at origin and destination, site requirements, site access, cargo sensitivity, or if a crane is required.

1. Technical Diagram – Provides technical details of the load prepared by the engineer. This will determine the cargo size, center of gravity and lifting points. These charts will help determine the proper equipment and lashings needed – to haul, lift and secure cargo. The ship or aircraft loading supervisor will also use technical charts when developing a loading plan.

2. Timeline – Communicate when OOG shipments are ready for shipping and if they must be delivered by a specific date. Deadlines communicated in advance – reviews and actions can be undertaken to ensure they are met.

3. Operational Skills and Proper Resource Allocation – Project cargo specialist with detailed scope of work, technical diagrams and a clear timeline to begin operational planning. ICE has a network of vetted suppliers who specialize in different tasks and operate in different regions. This benefits our customers and ensures cost-effective processing by qualified suppliers.

4. Design a custom OOG solution – a detailed operational plan will establish the framework for OOG cargo handling. The plan needs to be developed taking into account the unique requirements of the project. The more complex the project, the more substantial the plan must be. The plan must address all operational inputs required; from the time the goods are ready at the origin facility to the point in time when the goods are delivered to the destination facility.

Standard Cargo – Things to Remember When Shipping OOG Cargo
Oversized shipments and their unique requirements can present significant challenges for freight forwarders. A thorough analysis of all shipping aspects is required before shipping of this type of load in order to do so safely and efficiently.
In the case of OOG load transport, an in-depth analysis of all possibilities and careful planning of the entire job is crucial. A key element is providing freight forwarders with specific information about the shipment. In addition to standard information, professional technical drawings drawn by engineers also play a vital role. It is necessary for planning strategies for transporting, lifting and securing loads. Another important aspect of planning is the control of loading and unloading yards. Need to check in advance that they have all the necessary items and facilities such as a proper crane.

Standard Cargo – Additional Charges Associated with OOG Cargo Shipping
Logistics companies can require customers to pay extra for the necessity of punching holes in a given container. The cargo sticking out of the box limits the number of containers that can be loaded on a ship or on different conveyances. It also runs the risk of damaging containers or other loads. Therefore, when choosing OOG cargo, you need to be prepared for additional costs.

What is dimensional weight?
Essentially, dimensional weight is a pricing technique that freight companies use to maximize shipping efficiency.
Think of dimensional weight like this: The more space you take up on your haul truck, the more you’ll likely have to pay. Volumetric weight calculates how much volume a box has and converts that volume to weight.
So don’t pack your homemade candles in an oversized shipping box, as you’ll end up paying more for the air and space it takes up on the truck.
This is a more formal definition of dimensional weight.
Before dimensional weights were implemented, carriers were only charged based on the actual weight of the package. this is a problem. People pack lightweight items in large boxes. So when carriers pack their shipping units, they find they are packing several lightweight boxes that take up a lot of space. Since they can only pack as many items according to the space, they cannot ship as many items at once.
Dimensional weight calculates how much volume a box has and counts that volume into the weight. If the dimensional weight of the package is higher than the actual weight of the contents, you may be charged for the dimensional weight. Whichever number is higher, the carrier calls your billable weight. This solves the problem of light weight but bulky packages taking up space on the shipping unit.

How to determine actual weight
The actual weight of your package is rounded up to the next whole pound.
So if you have a 13.1 lb package, it will be counted as 14 lbs. Include any packaging for the item, such as bubble wrap or foam.
It is best to use a scale to determine the weight of the package, as this is the measuring device the shipper will use.
How to Determine Dimensional Weight
Dimensional weight is more difficult to determine.
It refers to packing density, which is the amount of space a pack can occupy compared to its actual weight. The dimensional weight of the package applies to all domestic and international packing services.
First, you need to use inches in the US
Measure the package at its longest, widest, and highest point, even if they are not on the same end.
Each of these needs to be rounded to the nearest whole number.
For example, anything less than half an inch is rounded down, and anything half an inch or more is rounded up.
Then multiply these three numbers together to get the package’s cubic dimensions (in inches).

Then there are two ways to calculate the next step:
For domestic shipments, you need to divide the cubic size by 166. Any fractions need to be rounded up to the nearest whole number. You should also use this number when you ship from Canada using Canada’s UPS standard.

For international shipments, you divide the same cubic size by 139. Again, you need to round up any fractions to the nearest whole number.
For example, if you have a package with a maximum point of 20″” x 10″” x 10″”. The cubic dimensions are:
20 X 10 X 10 = 2000
Then 2000 / 166 = 12.05
2000 / 139 = 14.38
For domestic and Canadian standard shipments, the dimensional weight is 12.05, rounded up to 13.
For international shipments, the dimensional weight is 14.38 and needs to be rounded up to 15.

LTL shipping definition.
Less-than-truckload (LTL) is used to transport small loads or when the load does not require the use of an entire trailer. This shipping method can be used when the cargo weighs between 150 and 15,000 pounds.
When shipping LTL, shippers pay for the portion of a standard truck trailer their cargo occupies, while other shippers and their cargo fill the vacant space. Shipping via LTL has many benefits.

LTL Freight Benefits
1. Cost savings
LTL shipments consist of several smaller shipments that can fill a full truckload. Since your shipment only uses a portion of the truck’s available space, you only pay for the space you use. This ensures that your cost will be a fraction of the normal full truckload cost.

2. Great for e-commerce
In a world where e-commerce has become the norm, businesses need to ensure that their shipping methods match their customers’ needs. LTL shipping increases efficiency and speed of delivery by bypassing the need to fill a truckload with each shipment. Shipping with LTL ensures that your goods or inventory arrives exactly where they need to be, when they are needed.

3. Small business friendly
Small companies benefit greatly from LTL shipping. Most small businesses ship less and have less shipping costs than larger companies. LTL shipping allows small businesses to benefit from the services offered by professional shipping without paying high costs for unused space.

4. Environmental awareness
The LTL shipping process results in fewer trucks loaded with full cargo, rather than more trucks loaded with less than their capacity. The reduction in the number of trucks required to deliver goods to their destination reduces emissions and your company’s carbon footprint.

Disadvantages of LTL Shipping

1. Shipping time
One disadvantage of this method of transportation is that LTL shipments often take longer to reach their destination because the shipment is brought back to the carrier’s terminal and combined with other shipments destined for the same destination area. Therefore, shipping times are always estimates, not guaranteed.
2. Higher risk of damage
Because LTL cargo doesn’t stay on the same truck for the entire transit, it’s more prone to damage as it is unloaded and loaded at each terminal along the way. That’s why it’s essential to follow recommended industry standard guidelines to pack your pallets safely.
3. Not suitable for many trays
LTL rates may not be optimal for shipments over 6-8 pallets or weighing over 10,000 lbs, in which case it may be more cost effective to use partial or FTL shipping.
LTL shipping is the most recommended shipping method for the 1-6 pallet range. If you are transporting less than a full truck or part of a truck, LTL shipping offers flexibility, is environmentally friendly, and is undoubtedly the most cost-effective option for small and medium businesses.

When to choose LTL shipping.
LTL shipping is ideal for businesses with shipping rates under 15,000 lbs and no need for a full trailer.
Consider LTL when looking to maximize cost savings.

Prepare for LTL shipping.
Dimensions: When measuring the length, width and height of your shipment, round to the next inch. Accurate dimensions are critical for carriers to maximize capacity and avoid adjustment fees.
Documentation: The bill of lading should be filled out as accurately as possible to be available to the carrier upon arrival. This document acts as a receipt for the goods being shipped.
Packaging and Labeling: Load your shipments onto pallets to concentrate and protect your shipments. Weights should be placed on the bottom of the pallet or crate and labels should be placed on the sides.

Final Thoughts on LTL Shipping
Your organization needs to realize that LTL freight is a viable logistical option. Depending on your organization and the most common types of shipments, less-than-truckload shipments can be very efficient and cost-effective. To maximize the impact of LTL shipping, stay up to date on how the LTL industry works and benefits you. Having this information ready can help you determine next steps you can take to get the most out of LTL shipping.

Get smarter solutions to meet your unique needs, meet growing consumer expectations, increase efficiency and increase speed with CH Robinson. Contact us to find out how our suite of LTL services can benefit your supply chain.

Freight classes are designed to standardize different types of cargo across the industry. The NMFTA (National Motor Freight Transportation Association) has developed guidelines to help define specific categories of freight. The parameters specified by the NMFTA are now considered industry standards and are used by all who operate worldwide.

In a nutshell: Freight class is when a cargo has certain characteristics that determine the cost of shipping them. An extremely durable and easy-to-handle material would have a shipping grade different from glass, which is easily damaged in transit.

There are 18 categories in NMFC which can be assigned to a certain kind of goods. Each of these classes has a wide range of characteristics, covering a wide range of different goods, usually using a distribution equation (we’ll discuss this more later). In addition, a corresponding category is usually provided for goods shipped as less than truckload (LTL) freight. In the end, the category assigned to the shipment will determine the tariff, which ultimately consolidates the price of the entire shipment.

By using freight classes, carriers, shippers, freight brokers, freight forwarders, 3PLs and all intermediaries are able to measure shipping costs. From the most expensive class 500 to the cheapest class 50, these classes provide a standardized reference point for shipping costs.

What is freight density?
The density of an LTL shipment is calculated using two metrics: its overall dimensions (height, length, width) and weight. Simply put, the amount of LTL trailer space a cargo uses is related to its weight and equals its cargo density.

Step-by-step instructions for calculating freight density:
Determine the length, width and height of your shipment (including packaging) in inches.
Multiply these three metrics together to calculate shipping dimensions in cubic inches.
To convert to cubic feet, divide it by 1,728 (cubic inches in cubic feet).
Then, divide your cargo weight (in pounds) by the total cubic feet.
This will give you the density of your cargo.
L x W x H = inches 3 # inches 3 / 1,728 = ft 3 lbs/ft 3 = density

How 3PL uses freight classes to reduce shipping costs:
A smart third-party logistics (3PL) may be able to determine the classification of shipments to benefit your bottom line. This may include:

1. “”Bumpy”” Density
Strategic change in packaging
Specify a lower “”publish value””

2. Bump density
“”Bumping”” is the practice of artificially declaring a higher weight on the original bill of lading to qualify for a lower freight classification. There are certain regulations that need to be followed to do so, and the cargo can only be bumped one level.

3. Packaging
Working with a 3PL is beneficial for manufacturers, shippers, and carriers alike who care deeply about you knowing exactly what you’re shipping. Knowing the exact item can inform packaging decisions, which can help influence shipment classification.

In some cases, smart packaging can mean lower, and therefore more cost-effective, freight classes. Such changes may even be more suitable/protecting your cargo, thus keeping you safe from potential damage and thus reducing costs.

Here are seven useful questions to ask when considering cargo packaging:

Is it as dense and compact as possible?
Is it durable?
Can it be handled easily?
Is everything fully protected?
Is this packaging good for storage?
Is this the optimal pallet size for this shipment?
Are these the best types/strengths for each product group?

4. Low “”publish value””
“”Released Value”” may provide the most economical but minimal protection, as it usually charges no additional fees, but limits liability to a value less than the actual value of the goods.

It is advisable to consult an experienced customs professional on your team as this will involve issuing tariffs with published rate provisions and negotiating with your shipper for a formal written agreement. Then, a bill of lading must be drafted to reflect such an agreement.

Deciphering the cargo class
Now that you know what freight classes mean and understand the different classifications, you might be wondering: do I calculate it myself? The answer here is yes, because it is up to the shipper to assign a certain freight classification to its cargo. Having said that, this is why it is critical that shippers understand all freight classifications, how NMFTA calculates them and how they apply to the type of cargo they want to transport.

There is nothing worse than assigning a specific classification to your shipment when in reality it is different. In one case, the shipper will have to spend more money once the invoice is corrected. Another situation is when the shipper pays too much for shipping and it is very difficult to correct once paid (the shipper can use a certain grade for a long time, only to find out that he has made a mistake until after countless shipments go out).