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.

For all your freight forwarding services from China, you can contact Tj chinafreight China right away.

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.

At Tj chinafreight, we help you with all freight forwarding needs from China to any global destination.

Contact us today for all your freight forwarding needs from China.

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.

This guide covers all information you need to know about delivery order.

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

What is a Delivery Order (DO)?

It is a release document issued by the carrier while releasing cargo to the consignee mentioned in the Bill of Lading.

Ensure the cargo is given to the right entity failure to which the reverse process is very difficult.

A delivery note is the climax of the shipping process; it indicates the end of the contract between the carrier and consignee for that precise shipment.

What is the Importance of Delivery Order?

1. Is a crucial document in international trade that gives the consignee a go-ahead to clear cargo with customs and take from the port to final destination.
2. It ensures safety of goods; cargo is released under strict measures only to the party mentioned in the BOL.

What should a Delivery Order Include?

A delivery order entails the following:

1. A description of goods contained in the shipment.
2. Quantity of each type of product.

• The name and address of the shipment receiver.

1. The name of the person who will pay if payment is to be made on delivery.
2. The delivery date; which helps the carrier keep time so that cargo can get to the buyer on the designated date.
3. The container used to deliver the products.

• May include a delivery confirmation where the carrier is supposed to sign to confirm goods were delivered according to the given instructions.

The consignee also signs the confirmation to ascertain the carrier goods were delivered and received.

Who issues a Delivery Order in International Shipping?

This is important document can be issued by the following people:

1. It’s granted directly by the carrier of your cargo if they have offices at the given location or by an approved agent on the behalf of the carrier.
2. If goods are Less Container Load, the document can be issued by a Groupage Operator for LCL.

• If your House Bill of Lading (HBL) was issued by a freight forwarder, the freight broker’s agent at a given location to collect the original HBL.

1. He supplies a release letter to the main carrier asking a delivery order to be issued to the recommended consignee.

Can a Freight Forwarder or NVOCC issue a Delivery Order?

Well, there are no regulations that can limit a freight forwarder and Non-Vessel Owning Common Carrier (NVOCC) from issuing a delivery note.

Both parties are mentioned in the Master Bill of Landing. As stated above, a delivery order is issued to the freight forwarder or NVOCC named in the MBOL.

FF and NVOCC supply a house bill of lading.

There are no requirements or restrictions to issue a delivery order, however, they can issue the document depending on the internal orders and in-house practices.

Is Delivery Order the same as Invoice?

No, they are totally different.

A delivery order contains product description and quantity but doesn’t include a bill and is issued before the release of cargo to the consignee.

An invoice on the other hand is a bill that shows the total amount the buyer should pay.

It is sent after dispatch or along with the goods.

What is the Difference Between a Delivery Order and a Bill of Lading (BOL)?

Below are variations between Delivery Order and BOL:

Delivery order is a release document issued by the carrier while releasing cargo to the consignee mentioned in the Bill of Lading.

It is not a negotiable document and it doesn’t act as a receipt.

In addition, it doesn’t include means of transport of the goods delivered.

Bill of lading is a document issued by the carrier to the shipper with details of the type quantity and final destination of goods.

It confirms the transportation of goods to the carrier.

It also acts as a receipt as it’s signed by the consignee after delivery of shipment.

Similarly, it is a negotiable document; it also represents the title of goods.

Is a Delivery Order a Negotiable Document?

No, it is not.

A negotiable document means one that is negotiable according to article 7 of the Uniform Commercial Code.

It is a document that incorporates the rights to delivery of tangible assets and also satisfies the requirements for negotiability.

Negotiable simply means ownership can be easily transferred from one party to another.

Examples of such documents include an original bill of lading and a warehouse receipt.

Does a Delivery Order Act as Evidence or Receipt of Goods?

Unlike the Bill of Lading, you can’ use a Delivery Order as a receipt for your goods.

When is a Delivery Order Issued?

This document is supplied by the Master Carrier to the consignee.

when all handling bills have been cleared and the contract of carriage has been taken out as a detailed bill of lading.

Essentially the carrier issues a delivery order in exchange for a bill of lading of the delivered shipment from the consignee.

When BOL is not surrendered to the carrier, the carrier holds the cargo until proper documents are submitted so that goods can be transferred to the consignee.

What are the Conditions for the Issuance of Delivery of Order?

If the shipment named consignee is actual intended owner of the goods and there are no freight forwarders involved, the BOL used is Master Bill of Lading.

Because no third parties or any intermediaries are involved.

This means different BOL have different ways of surrendering the document.

It may sound complicated but I will break it down for you; don’t worry.

1. Surrendering of original BOL- Most shipments have three bills of lading. All these three must be submitted to a shipping agent.

That means no copies are supposed to be circulating among the shipper and consignee.

For surrendering to be accepted, it must be done physically to the shipping agent.

I hope we are together up to there.

When the documents are processed, the shipping agent can go ahead and issue the delivery order to the named consignee or recommended agent.

In addition, the back part of a BOL has to be accepted and endorsed by the following partied:

• the named shipper and consignee
• Appointed consignee’s agents
• Issuing bank of Letter of Credit.

In a Waybill of lading endorsement the parties above sign at the back of the document followed by the signature of the qualified person.

This is meant to ensure the terms of Contract of Carriage are accepted by all parties.

Sometimes the appointed agent doesn’t appear on the consignee section.

In such a case the carrier may ask for confirmation with a Letter of Indemnity from the consignee.

I know it sounds strict but it’s meant to prevent them from releasing goods to the wrong entity.

Once all these conditions of Original BOL have been met then they can release a delivery note.

1. Seaway Bill for the surrender of D.O- This one is simpler than the previous one.

When the Seaway bill is used to arrange shipment the carrier doesn’t supply the original copies of BOL to either party.

This makes the documentation process simple.

Besides, this is common where there is a lot of trust between the shipper and consignee or the transport arrangement is via the sea and is short.

The shipping agent issues the delivery order once ordered by the shipper.

The consignee or the agent is left paying the pending payment charges to the carrier.

• After settling the available debt- Carriers have adopted this from businesses like supermarkets.

You only walk out with what you have paid for.

In ocean carrier charges may include

• Detention
• Demurrage
• Ocean freight
• Telex release fee etc

The carrier will send you a notification once the goods arrive and a tax invoice of all charges related to your shipment.

The entity meant to pay for the cargo should do so before the release of the delivery order.

1. Once E-Delivery Order is issued- a while back D.O was physical documents and payments were done in physical cash or cheques.

Meaning you had to be present in the premises.

Today most countries have adopted Electronic Delivery Order Release.

If shipment is not planned with a seaway bill or telex release bill, instead of offering original BOL, consignee doesn’t get D.O, it’s done electronically.

Similarly, payments are done online.

You only need to issue a shipping agent with a slip.

They will then notify terminal operators of E-DO release and update the system.

What are the Consequences if Delivery Order is Not Issued in Strict Conformity With, and in Exchange, for the Relevant BOL?

A Delivery Order should be issued in exchange for all and I  mean all original Bills of Lading failure to which dire consequences may follow.

If both Bill of landing and delivery order of the same shipment are surrendered to the carrier can lead to a lot of complication.

As earlier stated a delivery order is not a document of title hence the holder of BOL will be held accountable for goods until stated otherwise.

Also, the entity holding the D.O is allowed to claim damages from the carrier to cover for the losses encountered.

To avoid such consequences, carriers should ensure all original Bills of Lading have been released.

Equally, they should ensure the number of goods outlined in the D.O are the same as the ones in BOL.

A D.O should also contain all information in the BOL including the loading time

So that in case all BOL has not been submitted, a D.O can be issued in exchange for a Letter of Indemnity.

A delivery Order is a very valuable document but it can complicate the entire shipment process in case of any minor mistake.

Carriers should be very careful.

Is there a Difference Between a Delivery Order and a Delivery Note?

Yes, there is.

These two terms sound the same because of ‘delivery’ however they are worlds apart.

Here are the differences:

A delivery order is issued by a carrier in exchange for a bill of Lading.

It is issued before goods are released by the carrier to the designated party.

Similarly, it doesn’t act as a receipt and it’s not signed.

While as a delivery note also called a dispatch note or goods received note, is a document that follows shipment.

It provides a list of goods and their quantity.

It is mostly printed but sometimes can be emailed to you as a soft copy.

It’s used as a checklist by the consignee to verify whether everything is present.

Sometimes the delivery note is signed by the consignee then sent to the shipper as proof of delivery.

Both documents contain products however the time they are issued and the purposes they serve are different.

A delivery order paves way for the release of the cargo while the delivery note is the final phase of delivery.

What are the Documents Required for Delivery Order?

For you to obtain a delivery order, you need to issue your shipping agent with the original Bills of landing.

Sometimes the carrier may request for a Letter of Indemnity from the consignee.

How does Delivery Order Differ from Delivery Instructions in Logistics?

These two terms are used interchangeably however they are different.

A delivery order is used to release cargo from the port.

Delivery instructions are precise specifications to the inland carrier regarding plans made by the freight broker to deliver goods at a particular dock.

Does Delivery Order Contain Provisions of the Contract of Carriage?

No, it doesn’t.

A Contract of Carriage is an agreement between the consignor, carrier, and consignee.

It spells out the rights, duties, and liabilities of the parties.

A delivery order is only a document used in regards to transportation of goods to the designated party not a Contract of Carriage or transportation document.

What is an e-Delivery Order and what are its advantages?

Electronic Delivery order is softcopy D.O sent electronically.

It’s very convenient and time-saving. Unlike D.O for an E-Delivery Order, you don’t have to go physically to the shipping agent’s offices.

You can receive the document from wherever you are online.

All you need to do is make payment online then send the payment slip as proof to the terminal Operators and finally, you receive the document.

What is Ships Delivery Order vs Merchants Delivery Order?

Below are the differences between these two terms:

Ship delivery order, is a document that contains Bill of Lading and an agreement by the carrier to deliver goods to the person named in the document.

Merchant Delivery Order is where a seller who has shipped goods, issues a merchant delivery order to carrier.

Ordering delivery of part or all shipments the carrier has to a specific entity.

If MDO is supplied by a third party, then presented to ship the carrier needs to acknowledge it before it becomes attached to him.

The document is considered ineffective until the attornment time occurs.

After the acknowledgment, it becomes similar to the ship delivery order.

How Can You Request a Delivery Order from your Carrier?

Below is a step by step procedure a consignee can select haulage type, fill in relevant details for requesting a delivery order:

1. At the top right corner of your home page, select account then login.
2. In the delivery section, key in shipment and click request delivery order.

• View task status.

1. Select the preferred haulage mode either carrier or merchant haulage.
2. Select request delivery order.
3. Modernize haulage details such as release date and release to.

• Also, update haulage instructions for any precise details necessary then click apply to all containers.
• Add a working email address to where your final delivery order will be sent to.

1. Update details of the entity responsible for paying the demurrage and detention fees.
2. Verify all the information, if it’s correct submits.
3. Customer service will receive the request, wait for your document.

What is the Relationship Between Delivery Order and Sales Order?

Delivery order and a sales order are very similar in that both documents contain

• Details of the shipment
• Quantity and quality of the goods
• Name and address of the customer
• Delivery date

What is the Process of Delivery Order?

A delivery order is processed in two steps.

Once the shipping agent receives D.O request, they begin to prepare for the release of the cargo.

Step 1 is the picking step- goods are moved from the stock to output.

Step 2 is the shipping step goods are moved from output to customer ready for shipping.

Is Delivery Order Form Similar to a Packing List?

Yes, they are similar.

Moreover, there is a slight difference.

A Delivery order form has additional instructions for the Bailee to ship goods they have in custody.

A D.O form is typically one page, it can be printed or you can get softcopy from legal software programs.

What are the Legal Effects of Delivery Order in Shipping?

Once ship Delivery Order is accepted, rights against the carrier under the Contract of Carriage are transferred from  shipper, to the person mentioned in the D.O.

The holder of D.O can take action against the carrier on the terms under the contract of carriage if he was among the parties in the contract.

The carrier is there for attached to the terms of contract present in the D.O.

This shows the similarity between the D.O and BOL because of the transfer of rights against the carrier.

At Tj chinafreight, we will help you with all your shipping needs from China to any global destination.

Contact us today for all your freight forwarding needs from China.

Let’s look at some fundamental aspects of electronic logging device.

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

What is ELD (Electronic Logging Device)?

This is an electronic device used to record and capture driving time and hours of service (HOS) and engine activity. It is majorly used in commercial motor vehicles (CMV) such as trucks and buses.

It updates drivers and dispatchers with their driving status in real time.

What are Electronic Logging Devices used for?

Record hours of service that a driver has clocked in a day especially long distance drivers. It also records the number of hours they are on and off duty per week.

This is important to ensure that drivers do not drive long hours without rest, thus ensuring road safety.

It is integrated to vehicle’s engine to capture and record its activities such as ignition status, speed, miles covered. This is helpful when planning preventive maintenance service.

A part of it can be integrated to a GPS system to assist with vehicle tracking in fleet management.

Who needs an Electronic Logging Device?

Commercial fleet such as buses and trucks which travel long distances are required to have ELDs as part of compliance.

This is because the hours of services for commercial motor vehicles drivers is regulated by FMCSA.

What are the Benefits of ELDs?

It is mandatory for CMV to install ELD and record their driving time and hours of service for the drivers.

This is because HOS is stipulated by the Federal Motor Carrier Safety Administration (FMCSA).

Electronic logging device is capable of recording various information which is vital in fleet management and planning, compliance and efficiency.

Below are some of the uses for the electronic logging device:

Safety

ELD comes with in-built gyroscope and accelerometer which record driver’s driving style such as harsh braking, over speeding, sudden turning, etc.

This data can be used to train the driver to practice safe driving.

The HOS data is used to ensure drivers get adequate rest for their trips to prevent fatigue thus saving lives.

Also, the location data history can help exonerate innocent driver from false claims.

Compliance

The federal government regulates the HOS commercial vehicle drivers are allowed per day and hours on and off duty per week.

It is therefore a requirement for CMV to have the device installed in their vehicle.

The ELD will then record the number of service hours and duty status per driver electronically as “e-log”.

This data is then used by the fleet manager to create duty Rota for their drivers as per the FMCSA mandate.

Record Management

Before electron logging device mandate took effect in 2017, most commercial motor vehicle used to record this information on paper.

As a result, critical information was missed, and in some instances overlooked due to large paperwork record.

With the adoption of ELD, fleet managers are able to capture, data real time and mitigate and foreseen risk.

Besides, the records are important for posterity purposes.

Vehicle Maintenance

Since ELD are mounted on the vehicle’s onboard diagnostic (OBD) port, various engine activities are recorded.

Such activities include; mileage, speed, any faulty areas are also captured in the process.

This enabled fleet managers to plan for preventive maintenance in advance to prevent severe damage.

Additionally, the electronic driver’s inspection reports (DVIR) displayed on the driver’s smartphone increases efficiency and reduce amount of paperwork handled.

Dispatch and Routing

Because ELD is integrated to other systems such as GPS, dispatch officers have real-time vehicle visibility all times.

They are therefore able to plan for other vehicles without calling drivers to confirm location.

Security

Data generated by the ELD can be used to create virtual boundary using the geofencing feature as a form of security.

This helps you improve security and prevent potential loss.

Geofencing alerts you whenever a vehicle leaves the boundary in real time thus enabling you to detect potential theft.

What is the ELD Mandate and What does it Cover?

ELD mandate is the rule by U.S. federal government which requires all commercial operated motor vehicles to use electronic logging devices.

The body that is mandated to oversee the implementation of this rule is the Federal Motor Carrier Safety Association.

Electronic logging device records and keeps vehicle operations data and driver’s activity such as hours of service per day.

Commercial truckers’ HOS is regulated by FMCSA which has the maximum number of hours a drive should be on the road.

It also captures the hours on duty without driving and the rest time during the trip.

This federal rule was first passed in 1937 and commercial vehicle drivers used paper logbooks to record their working hours.

Paper logbooks were later replaced by automatic on-board recording device (AOBRD).

FMCSA made the EDL law in February 16, 2016 with CMV mandatory compliance date being December 17, 2017.

Commercial vehicles with AOBRD had until December 16, 2019 to replace the AOBRD with ELD.

The purpose of having this rule in place was to regulate accidents rate that were caused due to fatigue.

Previously, fleet managers would use paper log to record the hours a driver worked however, this was not very accurate.

To curb data tampering and improve safety on the roads, ELD has been made mandatory for all commercial motor vehicles.

Failure to comply with this rule leads to penalties or pulling non-compliant vehicles out of service.

FMCSA regulates the electronic logging device that are used to ensure they are tamper free.

What is FMCSA in Relation to ELD Mandate?

The federal motor carrier safety administration is a government agency that was established with the aim of averting CMV-related fatalities.

Majority of the accidents and injuries from commercial motor carriers were related to driver’s fatigue due to longer driving hours.

To prevent HOS inaccuracy and ensure drivers had adequate rest between trips, the FMCSA published the ELD mandate in 2015.

This rule required all commercial motor vehicle operators to install ELD to keep HOS and RODS data.

Failure to comply leads to fines or vehicle being barred from operations.

Why was the ELD Law Passed?

Before the adoption of the ELD law, commercial vehicle drivers would log in the number of service hours in writing.

This method was not accurate due to miscalculations or even employer’s pressure on drivers to work longer hours.

As a results, drivers were fatigued and accidents rates from commercial motor vehicles increased exponentially.

Such accidents drew the attention of media and public thus prompting regulators to find ways of reducing the accident rates.

As such, FMCSA, introduced the ELD law in order to control driving hours for commercial vehicle drivers and enhance safety.

This law required all CMV to install the device to record daily driving hours and weekly duty status for drivers.

How do you Know if you Need Electronic Logging Devices?

Electronic logging device mandate requires all commercial motor vehicles to install the device in order to be ELD compliant.

This is because commercial drivers who record RODs for up to 8 days in 30 days need to track them.

Commercial vehicles include; truckers, passenger transit buses, construction company vehicles, etc.

If you fall in the mentioned category then you need to comply with the EDL mandate.

Who Qualifies for E-log Exemptions?

Commercial motor vehicles must have electronic logging device installed and have both HOS and RODs record to be compliant.

However, this rule has exemptions for the following drivers or vehicle classes:

1. Drivers with less than eight days of record on duty status within 30 days period.
2. Vehicle manufactured before the year 2000 model.
3. Drive-away or tow-away operators provided the driven vehicle is part of the shipment.
4. Non-commercial driver license short-haul operators driving within 150 miles radius.

Although these drivers and vehicle classes are exempted from e-log, they are expected to have accurate logs.

This can be either in writing or AOBRD or any other log in software system available.

What are the FMSCA Regulations on Hours of Service for Truckers?

Hours of service is the maximum allowed hours for CMV driver to be on duty including driving and rest period.

The FMCSA provides HOS rules which commercial truckers must comply with to ensure they remain awake and alert while on duty.

The regulations are categorized as follows:

11-Hour Limit

This law allows truckers to drive for a maximum of 11 hours after having a 10 straight-hours off duty.

14-Hour Limit

A cargo carrying driver cannot drive beyond 14th continuous hours after coming on duty. The driver can only resume driving after taking a 10 consecutive hours off duty.

60/70-Hour Limit

This rule allows truckers to drive for a maximum of 60 or 70 hours in 7 or 8 consecutive days respectively.

The trucker is then required to take a 34 straight hours off duty before restarting a 7/8 consecutive on-duty days.

30 Minutes Break Requirement

A trucker must take at least 30 minutes break after 8 straight hours of uninterrupted driving.

The break should be non-driving, on or off duty or in a sleeper berth provided it adds up to 30 consecutive minutes.

Adverse Driving Conditions Exemptions

When long-haul commercial drivers encounter adverse weather conditions in their trip, an exemption is made to the 11and 14-hour limit rule.

A 2-hour extension period is added to the 11 and 14 maximum driving hours.

Short-Haul Exemption

This rule exempts drivers within a 150 miles radius in their normal work reporting location from the 14-hour limit.

They can extend their driving hours to 16 hours for 2 days within 7 consecutive on duty days.

Sleeper Berth Provision

This regulation requires drivers to spend 10 consecutive hours off duty and it can be split into two.

A 7 continuous hours in the sleeper berth and at least 2 hours can be outside sleeper berth but off duty.

The sleeper berth pairing when used together must add up to the 10 consecutive hours off duty.

How does ELD Impact Shipments?

ELD may affect shipment in the following ways:

• Overall capacity reduction on drayage and long haul FTL.
• Reduced flexibility and increased waiting hours at delivery points.
• Added charges such as lay over fee due to increased driver waiting time.
• Increased rate for drayage and FTl.

Does ELD Affect Cartage and LTL Shipments?

No, both cartage and LTL are exempted from the EDL mandate since they do not fall within the EDL mandate requirement.

However, it may impact on rates and capacity for drayage and FTL due to the regulated hours of service.

How does an Electronic Logging Device Work?

Electronic logging device is installed on a vehicle through the onboard diagnostics port where it directly record engine activity.

The device automatically captures engine status when on or off, miles driven, fuel consumption, vehicle location, faulty codes, driving hours, etc.

The integrated GPS system, gyroscope and accelerometer are able to record exact location, harsh braking and speed data respectively.

Also, the information from the engine and GPS is sent to a server that converts it into duty status records.

This data is then relayed through cloud computing method to an ELD web or mobile application for viewing.

The information is transmitted in real-time hence data update happens continuously.

The ELD web or mobile application can be synchronized with the fleet management system for data analysis, reporting and planning.

What Data does an ELD Device Record?

Electronic logging devices are mainly installed in commercial fleet to record drivers’ daily HOS and weekly hours on and off duty.

This is in line with the federal motor carrier safety administration’s mandate on hours of service for commercial vehicle drivers.

The device also records other important data information that can be utilized in various ways. ELD are also referred to as “telematics” devices because of their ability to transmit long distance computerized information.

They come with in-built GPS tracking, accelerometer and gyroscopes thus can record the following data:

• Driving time, number of hours of services per day for drivers and record duty status (ROD).
• Driver identification and user authentication
• Date and time
• The global positioning system (GPS) that comes embedded in the device gives real-time vehicle location.
• Engine speed and load data is displayed since the device is plugged on the vehicle OBD.
• Fuel efficiency, mileage and idling
• Diagnostics and fault codes
• Harsh braking or collision for safety monitoring.

When do ELDs record Information Data?

When the vehicle is moving at a speed of five miles per hour, the ELD picks the driving status.

As the speed increase beyond the threshold, it moves to in-motion status.

ELD records a stop status when the speed drops to zero miles per hour for three consecutive seconds.

ELD record information from driving to on-duty and not driving status, when the vehicle is not in motion for five minutes.

A status change pops ups to prompt the driver to enter the correct status.

If this does not happen within one minute, the device automatically updates to ‘on-duty not driving’ status.

Is an Electronic Logging Device Supposed to Record Data about Vehicle Performance?

ELD are installed to collect HOS data in compliance with the FMCSA HOS regulation.

Do the Specifications in the ELD Mandate include Requirements to Control the Vehicle?

ELD mandate only requires record of information that relate to driver’s record of duty status.

How Accurate is the Location Information for Commercial Trucks as recorded by ELDs?

When driving on duty, location accuracy is approximately within a radius of 1 mile.

When operating the CMV for personal use, the accuracy is within 10-miles radius.

How does an ELD Device Transmit Data?

ELD devices are telematics and utilize cloud computing technique thus can use different ways in their data transmission.

Commonly used transmission methods is via cellular data or Bluetooth pairing between the ELD device and the driver’s mobile application.

Alternatively, some ELD have in-built WIFI hotspots that provide connectivity between ELD and driver’s mobile app.

The Wi-Fi hotspot also enables drivers to stay connected and able to receive electronic work orders and access emails, while on transit.

What is the DOT in relation to Motor Carrier Safety Regulations?

Department of Transportation (DOT) is the federal government body in charge of transport safety, accessibility and efficiency in the U.S.

DOT through the motor carrier safety regulations act provides safety measures for the commercial motor vehicles operators.

These includes roadside inspections and annual safety audits to identify non-compliant CMV fleet.

The inspections are performed by state police officer or a certified DOT personnel.

How do you Transfer ELD Data to the DOT during a Roadside Inspection?

Roadside inspection are a mandate of the DOT to ensure CMV drivers are compliant with the hours of service.

These inspections are random and require the commercial driver to provide ELD data for the past seven days.

Whenever a commercial vehicle is stopped for ROD review from ELD, the driver should be able to transfer the data.

The transfer can be through a USB cable or Bluetooth pairing or the two approved ways; wireless web services or email.

• Wireless web services: send the ELD data to the DOT through a secure server. This is the recommended method of data transmission for roadside inspection.
• Email: sends ELD data to DOT via encrypted email message. However, email is unreliable and not commonly used.

What is the difference between ELD (Electronic Logging Device) and AOBRD (Automatic Onboard Recording Devices)?

Automatic onboard recording device (AOBRD) is an electronic device regulated by the AOBRD 1988 rule which replaced the paper logbook.

AOBRD was thereafter replaced by the electronic logging device in December 2019 when the ELD rule took effect.

Both devices are capable of capturing and recording driver’s hours of service and engine activity, however, ELD has superior features.

The major contrast between AOBRD and ELD include:

1. Both devices can record information on engine hours, vehicle location, date and time, driving mileage and driver duty status.

However, AOBRD is not able to capture vehicle status whether on or off, engine diagnostics, thus making it less reliable.

2. While ELD is able to record vehicles speed for 5 miles per hour and above, AOBRD must be set up.
3. ELD and AOBRD can show when and who made edits to the data. However, ELD provide more history of the edit that is required by DOT.
4. AOBRD cannot be synchronized to the universal coordinated time (UTC)

What does Engine Synchronization mean for purposes of ELD Compliance?

Engine synchronization is the integration of the ELD device with the CMV vehicle to monitor and record engine activities.

It is therefore able to records engine power status, vehicle movement status, miles covered and engine hours.

As a Carrier, how do I make sure that an Electronic Logging Device is Compliant?

Before purchasing an ELD device from a vendor, check if its manufacturer is registered and listed in the FMCSA website.

FMCSA maintains a record of approved ELD products whose manufacturer meet the required minimum operational specification.

How much will it Cost for my Fleet to be ELD Compliant?

The cost of installing an ELD depends on the provider depending on parts of a subscription and components that you own.

For instance, a provider may avail engine connectivity part and software for subscription while you buy your own device (BYOD).

Other providers will give you the driver’s device at one off cost or higher subscription rate.

The device provided in this case is normally less flexible thus allowing electronic logging only.

In both cases, ensure you install the right ELD solution to be fully compliant.

How can I get Drivers on board with ELD Compliance?

ELD compliance is mandatory for commercial motor vehicle operators that need to track drivers’ RODs for 8 days and beyond.

In order to get your drivers to adopt and be ELD compliant, you need to;

1. Select a FMCSA compliant ELD device provider with an easy to use solution.

The provider should be able to understand the ELD regulation and provide aftersales support in integration with other software.

2. Help the drivers understand the ELD device and how it will help them be ELD compliant. Allow them time to interact with it, make edit and enter information needed and give feedback on the same.

This will ensure that they understand the ELD functionality and use it effectively.

3. Involve the drivers in the ELD roll out plan and explain to them the need to be ELD compliant. This will make them feel part of the business success.
4. Include employee coaching program for continuous learning and improvement on ELD use.

Share reports from the ELD data and address any arising problems before it escalates out of control. Commend ELD compliant drivers as well to motivate them further.

A 100% compliance can be achieved if drivers, employees and employers collaborate to ensure effective and correct use of ELD devices.

Employers should have open communication with their drivers, encourage feedback on policies and sharing of ideas.

What happens if I am not in Compliance with ELD Mandate?

Failure to comply with the ELD mandate can land both the vehicle owner and the driver in trouble such as:

Hefty Fines

The driver, the vehicle or even the business can be fined heavily for flaunting ELD rule. This affects the business cash flow negatively.

Loss of Employee

When a driver is found violating traffic rules by speeding or aggressive driving, his license maybe revoked by the relevant authorities.

This will impact on the business negatively through loss of a skilled driver.

Increased Insurance Premiums

Insurance firms will see your fleet as a liability due to increased fines over non-compliance.

As a result, they will increase your fleet premium to cover the cover the risk of insure your fleet.

Being ELD compliant will enable you avoid such occurrences and save you time and money.

Do ELDs have a Feature to warn Drivers about approaching HOS (Hours of Service) limits?

Yes, the FMCSA permits the devices to have that feature however, it does not require it to signal drivers when approaching HOS.

How much is Electronic Logging Devices Price?

The price of an ELD depend on the vendor and the number of trucks to be equipped with the device.

Initially, an average cost of ELD was USD 2,500 per truck, this has significantly reduced with time to about USD 500.

This price reduction has been affected by various factors such as:

• Reduced hardware cost: Generally, the hardware price has been lowered over the year’s thus reducing overall ELD price.

Also, certain vendors offer discounted rates for large fleet thus lowering the price further.

• Device compatibility: Technology advancement has enabled compatibility across various smartphones.

This allows the fleet owner to use (BYOD) rather than vendor’s devices which are less flexible and more expensive.

• Installation: Some vendors charge installation fee per truck, this can be expensive for large fleet owners.

Ensure you get clear communication on installation charges before committing to a vendor.

Alternatively, you can select ELD solution that are easy to install and can be done by anyone.

• Training: When ELD sourcing, go for easy to use solutions to reduce the cost of training users.
• Add-ons fee: Different vendors charge differently for extra features such as fault detectors and data plans. All inclusive subscription fee is cheaper than separate fees per feature.

How do I Find the Best ELD (Electronic Logging Device)?

Not all electronic logging devices have the same features, hence there are a variety of options in the market.

For example, some ELD come with in-built hardware GPS tracking device while others give minimal location details.

Thus, it will not give real time data on location.

Other devices come with driver’s device for use hence require you to pay more.

Consequently, other ELD providers charge extra for added software features, like alerts, diagnostics schedules, eDVIR, etc.

In all these, the best ELD should be the one that is:

• Easy for drivers and fleet managers to use.
• Easy to install
• Reliable
• Offer add-on feature free of charge

What are the Common Myths and Misconceptions Surrounding the use ELDs?

Some of the myths and misconceptions surrounding ELDs is that they are too expensive and may lead to business closure.

The truth is that the price of ELD has dipped over the years with the advancement in technology.

Another misconception is that the devices have led to the loss of a driving hours due to the strict HOS regulations.

In reality, the majority of CMV operators have adopted the system because of its efficiency.

Many attest to the fact that they are able to log accurate RODs, unlike the previous paper logs which were inaccurate.

Additionally, it has reduced paperwork and saved on time spent writing and calculating hours of service.

Now it’s your turn and we would like to hear from you.

If you have any question about ELD or freight forwarding services from China – contact Tj chinafreight now.

I know you’re here to learn more about employer identification numbers.

A reason this guide will explore everything you’re looking for about employer identification numbers.

Keep reading to learn more.

What is an EIN?

EIN is an identifier of the business entity.

The IRS assigns this unique number to businesses to allow monitoring of tax payments.

The internal Revenue Service highly recommends the employers of businesses apply for the EIN if the business is within the US or its territories.

What is the Purpose of an EIN?

EIN is purposely used in the identification of business entities that are obligated to pay taxes to the relevant authority.

The IRS uses this number to trace the flow of tax payments made by the business.

Allows each hired employee to be assigned an individual EIN that allows them to be taxed individually while the entity is taxed separately

It allows fast processing of business licenses and allocation of finances to the business where need be.

Does My Business Need an Employer Identification Number?

Yes, it does. You will need to obtain an employer identification number for the business because the benefits outweigh operating the business without it.

These benefits include:

• Allows you to file the tax returns easily, therefore, avoiding constant encounters with the IRS.
• It also allows you to obtain finances to boost the business when need be.
• Acquisition of business licenses is made faster.
• It also allows you to obtain all the legal business documents that allow you to operate the business.

Also, if you have employees it is recommended to obtain the Employer identity number.

This allows the IRS to be able to determine the amount of tax taxed to employees and the business at large.

Note, even if you are operating a sole proprietor business it’s also advisable to obtain EIN to be able to separate personal and business taxes.

Also looking to scale up the business you need the EIN.

How does EIN vs SSN vs ITIN compare?

Comparison of EIN vs SSN vs ITIN is mostly applicable when determining how you are running the business.

This implies;

The business is a sole proprietorship

You are operating a limited liability company, hiring employees.

Operating as non-resident doing business in the US.

Therefore, Social Security Number is used when you are operating the business as a sole proprietor to pay for the business taxes.

It also allows you to have access to social security and social services.

In cases where you want to hire employees, obtain credit loans from banks or form a Limited Liability company the EIN is used for tax reporting.

Individual Taxpayer Identification Number applies to non-resident individuals operating businesses in the US, who are also obligated to pay taxes for the business.

Note, for you to obtain the SSN and EIN you should be a US resident and have all the legal documents to prove that.

Is the EIN the same as the Federal Tax ID?

Yes, it is

Federal Tax ID serves the same purposes as the EIN.

Employer Identification Number is also referred to as Federal Tax Identification Number.

It is commonly used to fasten the process of paying taxes.

Federal Tax ID is also important if you want to hire employees because it allows the employees to be taxed individually.

Can I Apply for an EIN without a Tax ID?

Yes, application of the EIN does not require you to necessarily have the Tax ID.

There are two basic procedures you can use to apply for the EIN.

They include:

You should incorporate the business in the US using incorporate.com within 2-3 business days. This is done by;

• Asking for the EIN directly
• Sending mails to the US mailing address
• Calling them using the given number

Secondly, you can obtain the tax ID from the IRS online platform or by using forms.

You can visit IRS.gov to apply online. Alternatively, look for forms and fill them out to apply.

Are Any Entity Types Excluded from Applying for an EIN?

No. They are not.

Every business entity can apply for the EIN whether the business is a small scale to large scale, whether a sole proprietorship or a partnership.

How do I Apply for EIN?

Application of the Employer Identification Number is done freely with no charges requested. You can apply for the EIN in the following ways:

1. Online application: This allows employers to fill in all the required information that is validated via a system and an EIN is issued.

This process is strictly for employers whose businesses are located in the US and its surroundings.

1. Apply using Fax: SS-4 Form is completed by the relevant employer and faxed to the issued fax number.

Upon-, review of the required information, the EIN is processed with a period of 4 days and faxed to the employer.

• Apply using Mail: IRS checks out whether the entity has provided the required information.

It is then determined if the entity requires a new EIN if so, it is processed and mailed to the employer through the provided mail address.

1. You can also call the IRS directly using the provided service number to obtain the Employer Identification Number.

You are required to provide the assistant with relevant information and upon verification of the legitimacy of the business, the EIN is issued immediately.

You can reach the IRS center via 800-829-4933 during working hours.

Can I Apply for an EIN Without a Business License?

Yes, you can apply for the EIN without having a business license.

Obtaining the Employer Identification Number first allows you to obtain other documents such as a business license.

In most countries, you must obtain the EIN during the initial stages of the business.

Obtaining EIN increases your credibility with the IRS thus prevents constant encounters due to delayed tax payments.

Also, it varies with the country and city you are operating the business in.

What are Responsible Party vs Nominee in EIN Number Application?

The owner, partner, or grantors of the business are the ones considered as the responsible party. Also, they have control or entitlement of the funds and assets of the business.

This entitlement allows the individual to directly or indirectly manage and control the business and disposition of business funds and assets.

A nominee is an individual nominated by the business to act on their behalf in running the business.

They are not entitled to controlling or managing funds, assets neither do they perform the dispositioning of the business.

Note in case the nominee acquired the EIN wrongly action should be taken to correct this mistake.

This prevents the disclosure of unauthorized information to the public.

To achieve this the business owner is required to fill all the required information in the SS-4 Form and submit it to relevant authorities

How Much does an EIN Cost?

The IRS has made the process of obtaining the Employer Identification Number free.

Besides, the employer is required to provide all the required information to the IRS, which allows easy processing of the EIN.

The internal revenue service has constantly issued a warning on companies that charge business owners for EIN whereas you can obtain it at no cost.

If you decide to obtain the EIN from online company, any charge made doesn’t go to IRS but instead to the company offering the service.

There are no charges requested while applying and obtaining the EIN for the business.

It is highly recommended to obtain the EIN directly from the IRS to avoid incurring unnecessary costs.

How Long will it Take to Get EIN?

The duration of obtaining the EIN depends on the mode of application you have used.

For instance,

The online application allows you to obtain the EIN immediately

If you prefer using fax, you are required to send a completed forms-4 to the service center and a response is given back within a week.

Application by mail takes four to five weeks if the required information on the SS-4 is provided accurately.

Also, application by phone calls, the EIN is processed immediately.

This mode is reserved by the IRS for international applicants.

What Happens if I Lose or Misplace my EIN?

You should consider the following actions in case you lose or misplace the Employer Identification Number:

• Contact the bank in case you used the EIN to open the bank account.

They will trace the EIN for you.

• Find the computer-generated notice given to you by the IRS when you applied for the EIN.
• Look for previously filed tax returns of the existing business that you have lost.

These papers should have an EIN indicated on them.

• You can call the IRS using the provide toll number to search for you the EIN directly

What Should I Do if I am Assigned an Employer Identification Number I didn’t Request?

If you have been assigned an EIN that you didn’t request it’s important to determine what was the main purpose, if the process is legit to avoid thefts.

Before assuming and taking any actions you should evaluate, maybe a third party requested the EIN for you for a legit business purpose.

For instance, third parties may include spouses, community club, business partners’ executor of a trustee while requesting for EIN.

Therefore, verify if the third party indeed requested the EIN

Contact the IRS for assistance if you determine that the EIN has been improperly assigned to you.

How Do I Find my Employer Identification Number?

Often you can encounter documents that require you to fill in the EIN and probably you cannot remember.

You can use the following ways to obtain the EIN:

Check the previously file tax return documents, it should be noted in that document.

Check on the original document issued by the IRS when you first applied.

You can also check on the bank documents issued while opening the bank accounts.

You can also check on the 1099-MISC form used to report payments for the business.

How do I Conduct an Employer Identification Number Lookup for Another Company?

Businesses may sometimes need to look up the EIN of the company to verify the information of new suppliers or clients information.

The following ways can be used for the lookup:

Ask the company directly

Search for securities and Exchange Commission’s website

Get the company’s business credit reports

Purchase of credit cards for the business in case the company is not registered as a public company.

This allows you to search for the company using the document in the public

Use a paid Employer Identification Number database

Use Melissa database for non-profits

Can I Verify the EIN? How?

No, verification requires authorization that is given by the IRS.

If you are not an authorized representative you cannot get verification of the EIN number.

In cases of non-profit business no authorization is required and the employer can verify directly with IRS on the Exempt Organization page of IRS website.

You should also check the paycheck to verify that the tax return filed has the correct Employer Identification Number to avoid its rejection.

Is an EIN Record Public?

No, The Employer Identification Number records are kept private by the IRS.

The IRS requires the employer to fill the SS-4 form that contains vital information such as the amount of taxes paid and business identification information.

Such information is not released to the public due to the safety of the employer and the business too.

Does my Business need a New EIN?

Yes, if you intend to expand the business in terms of changing from a sole proprietor to forming a partnership, hiring employees to work for you a new EIN is required.

The inclusion of employees into the business requires every employee to be issued with an EIN.

As a sole proprietorship, if you buy or inherit an established business or the business has been subjected to bankruptcy, you are required to obtain a new EIN.

Other considerations include; partnership where the old one has ended and a new one is formed.

Is Employer Identification Number the same Importer Number?

Yes, the Importer number can be used to serve the same purposes as the EIN.

Employers can conduct business or import into the country using the Importer number to pay tax duties to the relevant authority.

Can I Cancel my Employer Identification Number?

No, you cannot cancel the EIN obtained from the IRS the moment it is issued for the business. Also, the EIN cannot be reassigned or issued to other business entities.

It should be noted only the IRS can close the EIN account upon submission of the request and the reason you want the EIN closed.

The IRS ensures that all the returns have been made and any outstanding charges before closing the EIN.

Do Foreign Importers need an EIN when Importing into the US?

No, foreign importers do not need an EIN to import into the US rather a Custom Assigned Importer Number is issued by the relevant authorities. CAIN allows the importers to do business without having the EIN.

What is the Difference Between EIN and CAIN (Customs Assigned Importer Number)?

EIN is assigned to businesses for identification.

Normally, EIN is issued to employers who are residents in the US and are operating the business within or in the territories of the US.

Whereas, the CAIN is a type of identification used by imports in the US.

With the acquisition of CAIN, the importers do not need to obtain the EIN to operate.

Who is an Importer of Record for a Non-US importer?

If a company is importing to the US but is not established in the US, a third party will need to act as the importer of record.

This third party could be a third-party service, or the non-US company could arrange for the US client to act as the IOR.

Why does a U.S. Business Need to Act as the Ultimate Consignee for a Foreign Importer?

The US business acts as the ultimate consignee if:

• The business you are operating is registered and located outside the US territories.

Even with possession of EIN you are required to name the US as the ultimate consignee of the shipment.

• You do not have a US entity but in possession of CAIN.

you can name the US business as the Ultimate consignee during the importation of the shipment in the US.

Can Amazon Act as an Importer of Record for Shipments Going to an Amazon FBA Warehouse in the Us?

No, Amazon FBA does not act as IOR due to the huge responsibilities that the IOR are assigned.

Or ensures that the shipment has been successfully been imported to the required country.

What is the Procedure for Importing into the US Without a US Presence?

Importing into the US without a US presence requires you to provide relevant documentation of the business to allow verification of the legitimacy of the business.

This process is established as a foreign importer of records.

This procedure requires:

• Customs power of attorney signed by two officers of the company
• Copy of the articles of incorporation
• Copy of documents that empowers the two officers with authority to sign the power of attorney.
• Scans or pictures of the two signatories.

Do I need an EIN to Import from Alibaba?

No, Alibaba is more concerned with the quantity of the shipment you order from them.

They are not concerned whether you have obtained the EIN for the business.

In some cases, Alibaba requests the EIN because the customs request it during shipping.

Is EIN for Import Any Different from EIN for Export?

Yes.

EIN for import is used when shipping goods from other countries to the US.

EIN for export is used when shipping goods from the US to outside countries.

Both EIN for export and import are issued by the IRS to enhance business identification and for easy follow-ups on the tax administrations.

Where Can I Get More Information about US Import Policies, Requirements, and Procedures?

Topics on the CPB trade page explain the basic importing, exporting and requirements, arrival of goods formal versus informal entry, and restricted merchandise.

If you are a frequent importer, you should read Importing into the US that contains in-depth information when seeking to venture into importing business.

You should also read Informed Compliance Publication that has prepared some Informed Compliance Publication.

At Tj chinafreight, we help in all shipping from China needs.

Contact us today for all freight forwarding services from China.