How to Find a Heavy Equipment Shipping Partner You Can Trust

How to Find a Heavy Equipment Shipping Partner You Can Trust
How to Find a Heavy Equipment Shipping Partner You Can Trust

When shipping heavy equipment (or any cargo), working with a shipping provider you trust can have a profound impact on your experience. The right shipping partner will ensure that the entire process runs smoothly from start to finish, minimizing your work, stress, and often costs and any risk to your company.

When looking for a shipping partner you can trust, it's easy to find and choose the wrong one.

Here are some suggestions to help you avoid choosing the wrong heavy equipment shipping partner:

  • Taking the time now to choose the right heavy equipment shipping provider will save you a lot of trouble
  • Not only look for trusted heavy equipment shipping providers, but watch out for those you don't trust.
  • Pay attention to the right details when vetting potential heavy equipment (and other freight) shipping partners.

Here is some information you should ask for during your initial conversation with any potential shipping provider:

  • Evidence of financial stability
  • Safety record
  • Insurance and authorities
  • Communicate
  • Cargo transportation knowledge

A reputable and trusted partner will have this information and be happy to order quickly. This is a major warning sign if a potential shipping provider asks questions, delays providing you with this information, or otherwise attempts to circumvent your request.

Hope you don't get lost if you choose the wrong heavy equipment shipping provider.

If you find yourself working with a shipping partner you cannot trust, then you must review your contract with them. Determine what your partner is contractually obligated to provide and be ready and willing to take legal action if necessary.

Then, look for a trusted shipping provider as soon as possible. Depending on the situation, the right partner may be able to help you with your current situation. At the very least, he or she will be able to prevent and mitigate any potential problems.

Cross-border delivery of products

Cross-border delivery of products
Cross-border delivery of products

Why you should ship internationally ?

Deciding to ship your products internationally can be a tough one, but the chances of an ecommerce business reaching new customers and increasing revenue often outweigh the initial process required to set up.

But if you're still on the sidelines, it might be helpful to know that now, better than ever, it's better to start shipping goods overseas, as we see a dramatic increase in the global middle-class population. This opens up new markets that were previously inaccessible in places like Asia, Africa and South America.

Choose your shipping process

Determining your shipping and fulfillment process starts with understanding your business model and target market. Do you ship directly to consumers, or sell to other businesses? Do you want to handle the details yourself, or would you rather work with an expert to resolve red tape and deal with customs authorities? Based on your answers to these questions, you will be able to determine what shipping arrangements are best for your company.

D2C, B2C or B2B?

What type of company are you? What do these three-letter options mean to you? If not, don't worry - we're breaking them down for you. It all depends on who you sell your product to.

Direct-to-Consumer (D2C)

- This is a popular choice for wholesaler companies. In this business model, middlemen are removed and customers buy directly from the manufacturer. Customers generally benefit from lower prices, so many choose to do business with D2C companies when possible.

Business to Consumer (B2C)

- This is the most popular e-commerce business model and is where a business sells products to a specific niche of customers. They don't make actual products, that's what differentiates them from D2C companies. Any consumer can order directly from their website, and the orders are usually small to medium.
Business to Business (B2B)

- If you are a business, manufacturer or distributor, and you sell directly to other businesses, then you have a B2B model. The typical consumer would not buy directly from this type of business, and the order size would be much larger.

Tips for reducing friction for you and your customers when shipping internationally

We like to think that where there is a challenge, there is a solution. We show you three inevitable hurdles you may encounter when you start shipping internationally. Now, here are some tips and possible solutions to overcome the potential challenges that international shipping can present.

  • Always ship DDP (Delivered Duty Paid) whenever possible - this removes the unpredictability of customs duties and duties in the destination country. And, as mentioned earlier, it offers your buyers an added benefit by adding a level of security and confidence, as they will avoid risks during shipping.
  • Negotiate discounts based on quantity whenever possible. Shipping rates are usually negotiable, so if you ship a certain quantity each month, you should be able to apply for a discount, especially if you can guarantee the same quantity each month.
  • If you can find a reliable and well-known logistics service provider, choose a regionally focused logistics service provider. Follow the tips we covered earlier and let a regionally focused freight provider handle the details for you. The time you save is money in your pocket.
  • Book with your freight forwarder early in the shipping cycle. This allows you to secure space with the airline or shipping company as early as possible. This is critical, especially in the uncertain times we are in the COVID-19 pandemic.

Why Hiring a Freight Forwarder Is Good for You

Why Hiring a Freight Forwarder Is Good for You
Why Hiring a Freight Forwarder Is Good for You

What is a freight forwarder?

A freight forwarder is a service that most importers and exporters use to arrange shipments. Freight forwarders are licensed experts who understand how the end-to-end shipping process works and can do it on your behalf. Think of them as travel agencies for freight - just like travel agencies, they come in many shapes and sizes.

Some are freight companies or freight brokers in nature and are not involved in international shipping. Some specialize as ocean or air freight forwarders. Smaller freight forwarders often limit their reach to a few popular countries where they have working relationships with local logistics providers. At the other end of the scale, the larger freight forwarders offer global shipping services.

Choose the right freight forwarder

Choosing the right international freight forwarder can be a make-or-break choice for importers as international business is unpredictable. Poorly selected freight forwarders can result in government penalties, lost or damaged shipments, incorrect invoices, and inconsistent pricing.

The Importance of Hiring an International Freight Forwarder

International freight forwarders are an important part of the world economy and play a key role in every country as they are the only suppliers of goods and services to end consumers. Here are the dimensions in which they play an important role:

The internet

Freight forwarders help build and maintain friendly relationships between shippers, officials, carriers, and other freight forwarders, while facilitating fast shipments. Additionally, they limit friction between supply chain stages and add bottom-line value to it.

Negotiation

Some effective freight forwarders can easily find the balance between appeasing all trusted relationships and practicing all savvy trade deals, even if it needs to keep the business open to receive bids from other carriers.

Inventory management

It includes the most important parts of the supply chain, including the arrangement, maintenance and storage of inventory. It also includes business support in other areas, including procurement and production.

Schedule

The task of all freight forwarders is to book cargo hold in more than one mode of transport, which requires the coordination of all entities within the supply chain, including suppliers, manufacturers, carriers, etc.

3PL vs. 4PL Logistics Services

3PL vs. 4PL Logistics Services
3PL vs. 4PL Logistics Services

What is Third Party Logistics (3PL)?

Third-party logistics (or 3PL) refers to the outsourcing of e-commerce logistics processes to third-party operations, including inventory management, warehousing, and fulfillment. 3PL providers allow e-commerce merchants to do more and use tools and infrastructure to automate retail order fulfillment.

What are the benefits of 3PL services for your business?

-Cost Savings- Your company will definitely have less supply chain functions than a professional logistics company. Thanks to their exclusive relationship in the field of logistics, you can save a lot of driving costs.

-Expert Fulfillment - Supply chain logistics is not that simple and can be a daunting task without the help of experts. Expert shipping, warehousing and fulfillment is something you cannot ignore. That's what 3PL Logistics Services offers you while simplifying the entire process.

- Shorter lead times - 3PL service providers will definitely specialize in shipping services. Their large delivery fleet will expedite the entire delivery process and provide your customers with same-day delivery.

-Reverse Logistics - It's very frustrating when a customer returns your product. However, it is part of the business. Plus, you don't have to bother collecting returns because 3PL convenience includes reverse logistics in the transaction.

What is (4PL) Fourth Party Logistics Service?

4PL or fourth party logistics service is a supplement to the existing 3PL logistics service.

In this operating model, not only 3PL services but also other supply chain facilitation are provided.

Manage the resources, infrastructure, technology and other related aspects of a specific business.

4PL Logistics consists of a partner (company) who is responsible for all outsourced logistics as well as accessing, building, operating and designing supply chain solutions.

What are the benefits of 4PL?

There are many benefits of 4PL logistics services, one of the main advantages is trusted publicity.

4PL providers make long-term commitments to customers. The association is a valuable partnership and is very effective in achieving the common goals of the business.

4PLs are responsive in terms of customer connections, utilizing online interfaces to meet the modern needs of customers.

The main idea of ​​this logistics service is to eliminate inefficiencies and simplify business work.

In short, business expansion is completely possible and feasible with the assistance of professional partners of 4PL Logistics Services.

3PL vs 4PL: What's the Difference?

When researching 3PL, you may come across the term 4PL. 4PLs add an additional level of separation between e-commerce merchants and the 3PLs that ship their products: When businesses contract with 4PLs, 4PLs manage and arrange 3PL services for customers. This is sometimes called "dual agency".

4PL companies typically provide customers with end-to-end supply chain management, including 3PL services, manufacturing, inventory procurement, and more.

Update on Brexit import controls
Update on Brexit import controls

The UK government has announced an updated approach to import controls to help ease current cost-of-living pressures, and has suggested that the remaining import controls on EU goods will not be imposed this year. Instead, traders will continue to move their goods from the EU to the UK as they do now.

The government will review how these remaining controls will be implemented and further details will be published in the new control regime, which is targeted to come into effect by the end of 2023.

Specifically, the following controls planned to be implemented from July 2022 will no longer be in place, they are:

  • Require further Sanitary and Phytosanitary (SPS) inspection of EU imports currently at destination for transfer to Border Control Points (BCPs)
  • Safety and Security Declaration Requirements for Imported Products in the EU
  • Requirements for further health certification and SPS inspection of EU imports
  • Ban and limit the import of chilled meat from the EU

The controls that have been introduced will remain the same, they are:

  • The highest risk imports of animals, animal products, plants and plant products will continue to apply to customs controls already in place
  • Safety and security checks introduced last year remain in effect as part of existing customs controls introduced in 2021
  • If businesses import goods into the UK from other non-EU countries, they are still legally obliged to submit an S&S Entry Summary Statement (ENS) for these movements

Regarding safety and security statements (also known as ENS documents or "EUICS"), the current requirements are:

  • UK and Northern Ireland to EU = EU requires ENS
  • Rest of world to EU = EU requires ENS
  • EU to UK and Northern Ireland = not needed, postponed now
  • Rest of World (non-EU) to GB and Northern Ireland = GB/Northern Ireland requires ENS
  • GB to Northern Ireland = ENS required for Northern Ireland
  • Northern Ireland to GB = GB No ENS required

A GB EORI number is required for any UK port application.

Any declaration at EU ports requires an EORI number from the EU customs authority.

New Implementing Regulations in the Turkish Strait

Below are the latest updates to the Turkish Straits Passage Regulations, which were published on April 18, 2022, and will come into force on May 15, 2022.

The most significant change is the tug escort requirement for tankers over 175m in the Istanbul Strait, which currently only applies to lengths over 200m, and there is still no daylight limit.

  • LPG vessel with LOA up to 150m. and above should use pilotage services to pass through the Turkish Straits.
  • LOA 150m LPG carrier. And only use pilotage services and tugboats to assist through the Turkish Straits during the day.
  1. Vessels with an LOA between 150m and 200m should use tugs of at least 60t bollard towing capacity to pass through the two straits.
  2. Vessels with an LOA of more than 200m should use tugs of at least 90t bollard towing capacity to pass through the two straits.
  3. Depending on sea/weather conditions, the number or capacity of tugboats may increase.
  • Tankers with an LOA of 250m and above should be escorted by pilots and tugs through the Canakkale Strait during the day*
  • Tankers with an LOA of 200m and above should be escorted by pilots and tugs through the Istanbul Strait during the day. *
  • Tankers of LOA 175m and above should be escorted by pilots and tugs through the Istanbul Strait. *
  • Vessels with an LOA of 250m and above should be escorted through the Istanbul Strait during the day by a tugboat escorted by a pilot and a tugboat*

Vessels that refuse to be escorted by tugboats will not be scheduled as usual and will wait until the VTS Centre deems it safe to pass, which will certainly result in long delays to the schedule given the current weather and sea conditions.

For tankers with an LOA of more than 200 million, the fixed tug escort fee in the Istanbul Strait is USD 6.000 and the fixed tug escort fee in the Canakkale Strait is USD 6.500.

Tug escort charges for tankers in the Istanbul Strait are up to LOA 199,99m. is $4.000.

Please note that on May 9, 2022, Coastal Safety revised the Istanbul Strait tugboat escort fees as follows, which will be effective from May 15, 2022:

New Implementing Regulations in the Turkish Strait
New Implementing Regulations in the Turkish Strait

Using Big Data to Understand Shipping Rates

Using Big Data to Understand Shipping Rates
Using Big Data to Understand Shipping Rates

The trucking industry is a multi-billion dollar industry that keeps our economy going. Without freight services, businesses and households would have nothing, from food to toilet paper. However, most people don't really understand how big the industry really is. What's more, big data is critical to helping the trucking industry overcome two huge problems - driver shortages and fuel costs, two major factors driving freight rates. Take a closer look at both areas through big data.

Truck Driving Job Data

The biggest thing we hear from trucking is a shortage of drivers. The number of trucking jobs needed in the U.S. is projected to increase by 2025 so far, but what about the employment of truck drivers? The number of trucking workers has grown from about 1.2 million jobs since January 2010, according to the U.S. Bureau of Labor Statistics. As of May 2018, an estimated 1.5 million people worked in the trucking industry.

Operating cost of freight

Another key area to consider is the overall operating cost of trucking. In the trucking industry, trucking companies of all sizes get a share of the pie when it comes to freight costs. According to the National Transportation Institute, the cost of trucking includes:

  • Fuel costs about 40% of the total cost
  • 10% payment on truck lease or loan
  • 9% for truck maintenance and repairs
  • Truck insurance is 4%
  • 2% for licenses and permits
  • 2% of tires
  • 1% charge
  • Driver salary is 26%

All of these fees have an impact on the shipping price. For example, when crude oil prices rise, we see diesel prices and freight rates rising. When it comes to fuel, this is by far the largest part of any trucking company's budget. Therefore, it is easy to understand how fuel prices directly affect freight rates.

However, when interest rates rise, these loan payments and lease costs start to rise. The point is, as long as the economy affects the operating costs of trucking, it directly affects the cost that transportation customers pay.

Big Data Bottom Line

A shortage of drivers and rising fuel costs are just some of the reasons for the steady rise in freight rates. As you can see, it's a lot more complicated than any single answer. Other factors driving interest rates soaring include natural disasters, seasons and social disruption. Instead of trying to track the best shipping rates for your heavy equipment shipping needs, we recommend you turn to an expert.

How Electronic Logging Equipment Affects Freight Rates

How Electronic Logging Equipment Affects Freight Rates
How Electronic Logging Equipment Affects Freight Rates

Technology is dramatically changing the way the trucking industry works. From tracking shipments to managing service hours, technology plays a part in every shipment today. As a freight shipper, freight technology directly impacts how you manage your freight needs. A good example of industry-changing trucking technology is the use of electronic logging equipment.

Manage service hours

The biggest change that will happen with electronic recording devices is the time it takes to deliver goods. The new recording device uses wireless connectivity and electronic tracking equipment to record service hours for all commercial truck drivers. These logs record when truck drivers start and leave work as part of their service hours. According to service time rules, drivers can only drive for a certain amount of time before they need to stop and rest. One of the main reasons for the authorization of electronic recording devices is to reduce the number of fake logs recorded. Previously using paper logs, drivers could change their paper logs to change their HOS hours. Reasons Drivers do it, from driving over time to making up for lost driving time due to bad weather. Now, ELD has changed that.

Rate change

The longer it takes for your shipment to reach its destination, the more money you will spend. It depends on how long it takes the driver to manage your shipment. Loss of productivity coupled with ELD-related technology costs is expected to drive up freight rates. While the jury is still out on this, analysts predict a 3% to 5% increase in shipping. As a shipper, you need to be prepared for potential shipping costs as these affect your business.

In this situation, you can take some proactive steps:

  • Increase delivery times and schedule shipments more flexibly.
  • If desired, allow drivers to park during off-hours at your facility rather than having them leave the area to find truck parking.
  • Analyze your routes between 400 and 800 miles to determine how ELD directives will affect deliveries.
  • Visit the FMCSA website regularly to stay up to date with the latest ELD regulatory news.
  • Choose an ELD Compliant Carrier

Things to Consider When Researching Shipping Rates

Things to Consider When Researching Shipping Rates
Things to Consider When Researching Shipping Rates

 

When researching shipping rates, your task is to get the best shipping rates possible for your shipping needs. One way is to understand the makeup of shipping costs. Consider the different variables that affect rates and how those variables relate to your shipments.

Fuel cost

A common misconception is that if diesel prices fall, so will transportation costs. In addition to fuel costs, there are many other aspects such as FMCSA regulations and seasonal demands. Also, if you have a contract with a carrier that provides you with on-going freight service, you likely have locked in an inline shipping price that includes a fuel surcharge portion that reflects the price of the fuel pump.

Type of transport

The type of shipping service you need will also affect the overall shipping rate. You can expect to pay more for specialized freight including oversized cargo, tanker transport or refrigerated cargo. These types of transports require more time and effort, as well as expensive specialized equipment. You can save the most on shipping if you're dealing with flatbed freight or a basic dry van trailer, especially if the freight is touchless hitch.

LTL and vehicle

Another myth is that you have to fill a truck with 26 single stacks of pallets to get the goods out. Thanks to the boom in e-commerce, less-than-truckload shipping companies have increased bandwidth. LTL shipping is more accessible due to the supply and demand relationship between shipping customers in the commercial and residential sectors. This means you no longer have to wait until you have enough to fill a truckload to save on shipping.

Consider the cost savings and faster turnaround times you can realize if you choose to ship with LTL freight services. Whether you're shipping to warehouses, retailers, or directly to customers, your products get to customers faster. This enables your business to make more money faster and keep your products on the move.

Time of year

Certain seasons lead to peak shipping. Holidays and summer months are two of the busiest times of the year for operators. However, as produce picks up, spring freight demand will also increase. This also drives the demand for cargo trucks in the event of natural disasters such as hurricanes or tornadoes. Here's a good rule of thumb if you want to avoid skyrocketing freight rates in the spot market. Avoid shipping at the end of the month, before holidays, or at the end of the fiscal year.

Service Hours Rules

This brings us to the most important aspect of any shipping rate. The driver delivering your cargo is regulated by the Federal Motor Carrier Safety Administration as a commercial vehicle operator. FMCSA mandates regulations for truck drivers to ensure their safety and the safety of others. One of the latest regulations to come into force is the Electronic Recording Equipment Directive.

Save on shipping

All of these factors can change the price of shipping from one minute to the next. It is important to understand these variables so that you can prepare for a sudden surge in price.

Time-Saving Tips for Shipping Freight

Time-Saving Tips for Shipping Freight
Time-Saving Tips for Shipping Freight

For the best shipping rates, you want to start the process of preparing your shipment as soon as possible. Depending on what you're shipping, this may involve packing, packing, and placing your cargo on pallets for dry truck loading. If you have flatbed hauling, such as heavy equipment, you will need to collect the make and model, as well as the size and weight of the load. Once you have your load ready and have a solid plan for the size of the load, it's time to decide on shipping. By taking these steps before contacting the company for shipping costs, you can save a lot of backtracking.

Choose your shipping type

Do you ship by full truckload, including 26 pallets or 46,000 lbs? Or would you like to ship some of your shipments using less than full truckload (LTL) freight services? Either is possible, but you need to know which type of shipping service to request.

Choose a trailer

Determine the type of trailer required for loading. If the load requires weather protection and safety, a dry truck trailer is the way to go. However, your load must fit on a 53-foot wall trailer. If you're transporting oversized loads, heavy equipment or vehicles, a flatbed trailer is your only option. Unprocessed liquids and bulk commodities such as corn or grain require tanker trailers. A refrigerated trailer is required for cargo that must be kept at a certain temperature, such as frozen meat or fresh fruit. Know the basic trailer type you need to get a more accurate shipping rate.

Determine the distance

The biggest determinant of shipping costs is how far the goods need to be transported. Get the shipping and delivery destination addresses before contacting anyone for shipping costs. The freight company will calculate the exact mileage based on the actual mileage or short distance mileage. The difference between actual and short mileage is the mileage required to deliver the load. Typically, short-haul miles cost less than actual miles by up to 5%.

While you might be inclined to choose shipping rates based on short mileage, keep one thing in mind. Carriers who pay actual miles are generally considered higher-paid freight employers. These high-paying companies are able to attract higher-quality drivers who are more experienced and ready to work with the company long-term. This means for you usually a more specialized fleet to handle your freight and represent your brand in front of your customers.

Contact a shipping agent

You can contact individual shipping companies or independent contractors to obtain shipping charges for your shipments. However, time is of the essence, and you want to determine shipping quickly to avoid last-minute shipping surcharges. The easiest way is to contact a freight forwarder such as TJ chinafreight. We'll do the heavy lifting for you to shop around. Our team, working in over a hundred countries around the world, is always ready to help you. This enables you to get the most competitive price possible.

Make sure your load

Whether you hire a freight carrier or work with a shipping agent, you need to protect your cargo. This is where cargo insurance comes in. The shipping company will have its own liability insurance. However, you also need to make sure that the person you choose to ship the goods has adequate cargo coverage to cover the value of the goods you ship. If your load values ​​exceed your coverage limits, consider increasing your coverage.