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What Is Land Transportation Mainly Used For? 27 May 2022, 7:47 am

Also commonly known as ground transportation, the term land transportation covers road and rail freight transportation. Shipping parcels across land involve either trucks or trains as transportation vehicles. 

What Is Land Transportation Mainly Used For? 

  • Domestic Shipments: While domestic shipping carriers often also offer air transportation, it’s not utilized all the time, especially when time isn’t a factor. Land transportation is often more affordable than other freight types, and an added bonus is that there are a variety of carriers to choose from. 
  • Last-Mile Transportation: The last leg of the shipping process is referred to as last-mile delivery, which moves the cargo from its distribution centre to its final destination, either a brick and mortar retail store, or oftentimes the door of the customer who purchased the product. Learn more about last-mile transportation and its importance here: What is Last-Mile Delivery? 

Advantages of Land Transportation 

  • Cost-Effective: In the grand scheme of things, land transportation comes with relatively lower costs in regard to packing fees and fuel costs.  
  • Versatile & Flexible: In domestic shipping, the use of land transportation such as trucks and trains can be versatile. These vehicles are capable of handling short and long hauls, and trucks can reach almost everywhere, even rural areas. And with extensive road networks, land transportation is flexible and can accommodate ongoing traffic jams to ensure timely deliveries.     
  • Convenient & Trackable: Oftentimes with truck deliveries, land transportation involves door-to-door services. An added bonus is that if the freight is travelling domestically, GPS tracking becomes easier and customers can easily track and trace their shipments. 

Disadvantages of Land Transportation 

  • Inefficiency: As a trade-off for being cost-effective, using land transportation may mean that shipments arrive at their destinations at a slower rate. Air freight can cover longer distances in the same period of time, but when it comes to shipments that aren’t time-sensitive, land transportation can be used to save business costs.   
  • Dependent on Weather: In the cases of natural weather disasters like tornadoes, hurricanes, intense storms, or fire, land transportation may be incredibly delayed. While trucks may be able to reroute their journeys, it still poses a danger for the drivers. And since trains are dependent on the rail system, shipments on freight trains will be forced to stop until the weather clears.   

Contact SFI! 

Both international and domestic shipments need land transportation, whether for last-mile transportation or for the entire shipping journey. Luckily, SFI has our own truck fleets available for you! If you need any assistance regarding freight forwarding, contact SFI today, and we’ll take care of your shipping needs. We have professionals ready to help smooth any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.  

The post What Is Land Transportation Mainly Used For? appeared first on Straight Forwarding.

What Would Happen If Trucks Stopped?  19 May 2022, 11:45 am

The Trucking Industry 

The trucking industry’s main objective is to transport freight shipments over land. From foodstuffs, furniture, textiles, technological equipment, raw materials, to everyday commodities, every product category gets transported by truck during the shipping process. Sometimes trucks pick up cargo from ports and deliver them to retail distribution centres, and other times trucks are used in the construction industry to transport raw materials to building sites. 

The trucking industry’s efficiency and wide coverage are made possible through the variety of trailers that are available for use. Learn more about the types of trailers used in the trucking industry here: An Introduction to Loose Cargo

And in order to get into the trucking industry, prospective drivers must acquire a separate commercial driving license and receive extra training to learn about government implemented driving regulations and practice how to handle large vehicles with heavy volumes of cargo. 

The Importance of the Trucking Industry 

The trucking industry has often been called the “backbone of the US economy,” and it’s not without reason. The US economy is heavily dependent on trucking transportation methods to move consumable goods and keep supply chains alive. According to a recent study done by the American Trucking Association (ATA), about 70% of the country’s freight is transported via trucks and the trucking industry handles nearly $700 billion USD worth of cargo every year. And within the United States, there are over 3.5 million truck drivers working tirelessly to ensure that shipments arrive at their destination safely. 

Unless a manufacturing company or distribution centre has direct access to railroads, the last leg of the shipping journey is always completed by trucking transportation. This part of a shipment’s journey is actually the most time-consuming and expensive part of the whole shipping process, making up 53% of the total shipping cost. Learn more about it here: What is Last Mile Delivery? 

What Would Happen If Trucks Stopped? 

How many trucks do we pass by every day in traffic? That’s not an easy question to answer, as most people aren’t really paying attention to the number of trucks driving down the streets. But trucks are a crucial part of freight transportation, and it sounds dramatic, but if the trucking industry just vanished off the face of the earth, the economy would most likely fall apart. 

Oftentimes, trucks are carrying and transporting time-sensitive shipments like fresh produce and essential medical supplies. But there are many other industries that will suffer if trucking transportation comes to a halt. Read more about medical logistics here: Providing or Choosing Medical Logistic Services?

In a hypothetical situation where trucks stopped operating, many critical industries will be affected within the first 1-2 days. These include: food, healthcare, transportation, retail, manufacturing, waste removal, and banking. Grocery stores will run out of food, hospitals will exhaust their medical supplies, and gas stations will be unable to provide more fuel. Manufacturing centres won’t receive raw materials to work with, medical and hazardous waste will start to release toxins and infectious diseases into living environments, clean water will become inaccessible, and more. Almost every industry requires trucks to transport their products and materials, so the lack of truck transportation would be detrimental to the economy. 

That’s all without mentioning the devastating amount of people who would lose their jobs. Furthermore, there may be other effects, like increased crime rates, untreated illnesses and injuries, higher death rates, and widespread civil unrest. Truck drivers are pivotal to the world today. Beyond being an important cog in the freight forwarding industry, truck transportation is also crucial to the world’s economy as a whole. 

Contact SFI for Professional Help! 

If you have shipments waiting to be delivered but don’t know how to face the freight forwarding industry, have no fear! SFI can take care of your shipping needs today. Contact us and our professionals will help you tackle any shipping problems you may have. Send us an email at info@sfi.com or call us at (909) 594-3400.

The post What Would Happen If Trucks Stopped?  appeared first on Straight Forwarding.

What Is Multimodal Transportation? 13 May 2022, 11:48 am

What Is Multimodal Transportation?

Multimodal transport is often also called combined transport, which makes its meaning rather self-explanatory. Multimodal transport refers to the movement of cargo using at least two different modes of transportation, while under a single contract. And although multiple modes of transport are involved (sea, air, or land), the carrier is legally responsible for the entire freight journey. The carriers involved are called multimodal transport operators or providers. 

The other method of transportation that is often compared to multimodal transport is intermodal transport. Learn more about multimodal transport and how it differs from intermodal transport here: Intermodal vs Multimodal Transport Explained.

What Are the Benefits of Multimodal Shipping? 

  1. Clear Communication 
    1. As mentioned above, multimodal shipping places the legal responsibility of the entire freight journey on the carrier. This opens the opportunity for better communication, since talking to just one carrier provider is much easier than contacting multiple carrier companies. This creates a much smoother shipping process since there is only one BOL, and only one point of contact. 
  2. Time Efficient 
    1. Multimodal transportation uses shipping containers that can easily move between transportation devices. This leads to shorter transit times since the pickup and drop-off process is sped up. Multimodal shipping also completely removes the handling process that is needed when it’s time for a switch in a carrier company. So by giving one company complete control over the entire freight shipping journey, delivery delays can be minimized.  
  3. Cost-Effective 
    1. Transportation costs are often lower than intermodal transport, and in general, multimodal transport offers decreased freight rates, and lower cargo insurance. Furthermore, since it’s easier to track the shipment stage with only one point of contact, multimodal transport also reduces costs by allowing shippers to spend less money on monitoring goods through the shipping process. 

What Are Some Challenges of Multimodal Transport?

  1. Common Inspections 
    1. Multimodal transport terminals often undergo safety inspections. With high requirements to ensure security and safety, authorities will commonly head over to multimodal shipping terminals to inspect them. This limits operations and causes delays. 
  2. Legal Limitations 
    1. When it comes to international shipping, there’s a whole other host of problems that may arise with the use of multimodal transport. The contents of the shipping container may run into legal and operational issues depending on the country that the merchandise is being shipped to. 

Is Multimodal Shipping For You? 

There are advantages and disadvantages to multimodal shipping, and just like any other shipping process, the decision should be based on the services you need and what you prioritize. Multimodal transport provides an overall smoother shipping process for the shipper, but if you’re unlucky, you might end up coincidentally contacting a multimodal transport operator when a terminal inspection is taking place. 

But if you need any assistance regarding freight forwarding, you can always contact SFI and we’ll take care of your shipping needs. We have professionals ready to help resolve any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post What Is Multimodal Transportation? appeared first on Straight Forwarding.

What Is Freight Collect and Freight Prepaid? 10 May 2022, 10:46 am

The freight forwarding process can be pretty complicated, especially with the number of documents that are required in shipping. There are many different terms involved, and some of them can be confusing. This blog goes over the terms “freight collect” (also commonly known as “shipping collect”) and “freight prepaid,” which are often used in conjunction with the two terms “FOB Origin” and “FOB Destination.” 

What Does Shipping Collect Mean? 

Shipping collect, also known as “freight collect,” is an indicator of who is responsible for the cost of shipping and the additional charges that need to be paid for a particular shipment. In the case of freight collect being identified, the consignee or receiver will be in charge of the freight. The term “Collect Upon Arrival” is also used in reference to freight collect. 

The function of freight collect is similar to the “Cash on Delivery” (COD) arrangement in online shopping. Except, only the freight costs are paid for by the consignee or receiver when the cargo arrives. Things like the cost of goods would already be arranged for.  

FOB Origin Freight Collect: with this term, the consignee or receiver of the shipment receives ownership of the freight as soon as it has been picked up by the carrier at its origin. The buyer is also responsible for both the safety and costs of the shipment until its arrival at the destination. 

FOB Destination Freight Collect: with this term, the consignor or shipper retains ownership of the cargo during the transportation process, and would be held responsible for any damages or delays that may occur to the shipment. However, the buyer is still responsible for the end cost. 

What is Freight Prepaid? 

Freight prepaid is the opposite of freight collect. A freight prepaid indicates that the consignor or shipper is responsible for the shipping charges and any other extra charges that may pop up. Freight prepaid is occasionally referred to as “Prepaid & Add.”

FOB Origin Freight Prepaid: with this term, the ownership of the shipment is transferred to the consignee or receiver once the shipment gets picked up by the carrier. However, the responsibility for the safety and costs of the cargo remains with the seller. 

FOB Destination Freight Prepaid: with this term, the cargo ownership stays with the consignor or shipper during the shipping process. Furthermore, the seller is also responsible for the safety and costs of the shipment until it has been successfully delivered to the destination. 

Freight Collect or Freight Prepaid – Which One Is Better? 

Since the two terms identify which party pays for a freight shipment, the answer to this question really depends on who you ask. 

For a seller, choosing freight collect would appear to be the better option, as the possibility of paying for extra freight charges falls onto the consignee or receiver. On the contrary, a buyer would most definitely prefer utilizing freight prepaid, since that alleviates the responsibility of footing the bill for any risks that the shipment may go through during transportation. 

Let SFI Help You! 

The logistics and shipping industry can be incredibly complicated to navigate, and the amount of confusing terminology does not help. And it’s totally normal to be confused by everything. That’s why there are industry experts like SFI here to help you! SFI seeks the most cost-effective ways to transport all types of commodities using every available shipping option. We have years of experience and can handle anything.  Contact SFI today and we’ll take care of your shipping needs. We have professionals ready to help resolve any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post What Is Freight Collect and Freight Prepaid? appeared first on Straight Forwarding.

The Categories of Cargo 29 Apr 2022, 11:47 am

A freight forwarder, or forwarding agent, can organize shipments with carriers to move cargo from place A to place B. And in the world of logistics and freight forwarding, almost anything can be shipped from its origin to a destination. But different types of cargo require different methods of transportation. The cargo category decides on what type of container it gets shipped in, and how it gets processed once it enters customs clearance. 

What Are the Different Categories of Cargo? 

  • General Cargo 
  • Bulk Cargo 
  • Special Cargo 

General Cargo 

In the freight forwarding industry, the term general cargo refers to goods that can be transported individually in one piece. These include palletized goods, packages, barrels, or boxes. General cargo is unitized, and each general cargo container load has a defined way of measuring the units it contains. 

What falls under the umbrella of general cargo? 

Bulk Cargo 

Bulk cargo is often referred to as loose cargo. These types of shipments are comprised of items that do not require packaging or are weirdly shaped and cannot be shipped within containers, or cargo that cannot be strapped down to a pallet. Learn more details about bulk cargo here: An Introduction to Loose Cargo 

What is classified as bulk cargo? 

  • Liquid Cargo: gas, milk, petrol, etc. 
  • Dry Bulk: coal, grains, gravel, sand, etc.  

Special Cargo 

As the name suggests, special cargo pertains to the different types of cargo that need to undergo special shipping procedures. Their initial documentation, handling, and loading processes will all be different and specific to the type of cargo being transported. 

What are some examples of special cargo? 

Have Any Questions? SFI Can Help! 

Consider working with SFI today! We work with packaging industries, and can handle cargo transportation, regardless of which category it falls under. If you need any assistance regarding freight forwarding, contact SFI today and we’ll take care of your shipping needs. We have professionals ready to help resolve any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post The Categories of Cargo appeared first on Straight Forwarding.

The Unfortunate Cost of Freight Forwarding: Port Charges 28 Apr 2022, 11:34 am

 

The cost of doing business in the freight forwarding industry can be significant at times, especially since freight rates are still quite high, and still unpredictable as ever. Experts at McKinsey & Company have claimed that freight rates will remain elevated, and that “it is almost impossible to predict exactly when supply chains will normalize. Efforts are being put in place to remedy the situation, however, massive uncertainty remains.” 

With that being said, extra added costs are the last thing any freight forwarding company needs, as importing and exporting goods is already expensive enough. However, there are many types of port charges that are also an unavoidable part of shipping, and those costs can accumulate easily. Port fees can become exorbitant, but not all hope is lost! There are actually some certain port charges that you can get around. 

What Are Port Charges? 

Port charges, or port fees, are expenses that need to be paid to port authorities in exchange for the use of the port’s facilities, equipment, and services. There are many different types of port fees that will add to the overall cost of shipping, and we go through some of the most common types of port charges in this post. 

What Are the Most Common Types of Port Charges? 

  • Ship Dues: Ship dues are also known as port dues or docking dues. These are imposed on all ships that enter the port. Ship dues are allotted to cover the cost of the port’s infrastructure, like berths, channel lighting, etc. Each port has its own way of calculating docking dues, but they all follow a general rule of being based on the amount of cargo in the ship’s vessel. Port dues also vary depending on the origin of the ship, with vessels travelling between international ports being charged with higher dues in comparison to domestic vessels. 
  • Goods Dues: Goods dues are charged based on the cargo that gets loaded, unloaded, or transferred between ships. These charges are typically paid for by the customer, instead of the shipping company. Weight, volume, or number of goods play a factor in calculating the rates, and different types of cargo (liquid, palletized goods, livestock, etc.) are measured with different metrics. And of course, there may be extra charges for hazardous or dangerous cargo.  

What Are Some Other Types of Port Charges? 

  • Terminal Handling Charge: The terminal handling charge (THC) is, unfortunately, unavoidable, as the fee is for loading and discharging containers from ships. 
  • Port Storage Charge: Like the THC, port storage charges are also inescapable. These charges are collected for the containers on the port that are waiting to be processed. These containers either haven’t been cleared for import, are waiting to be shipped, or are empty containers that haven’t been picked up yet.   
  • Demurrage: Demurrage charges are caused by two possible scenarios. One, the full container hasn’t been moved out of the terminal for unpacking within the allotted free days. Two, the container can’t be loaded onto a ship, either because of incorrect documentation or other mistakes. 
  • Detention: Detention fees need to be paid when the container has stayed outside of the port past the free days. In order to avoid these charges, make sure to return containers within the allocated free time. 
  • Early Arrival & Late Arrival Charge: Ports operate under strict and particular schedules, so when a container arrives at a different time, ports will require extra payment to account for the additional work. It doesn’t matter whether the container arrives earlier or later than intended, if it shows up anytime outside of its scheduled arrival, as it both results in more work for the port staff. 
  • Lift On & Lift Off: These charges occur when the container has already been processed, but needs to be moved again for other reasons, like further inspection. In that case, lift-on and lift-off charges can be added by the port.  
  • Cancellation and Amendment Charge: This can also be called a shifting charge. Similar to early and late arrival charges, when a container’s journey needs to be altered, it leads to more work for the port staff. These alterations can vary between stopping the container, or changing the container’s destination. But regardless of the amendments, port staff will have to modify a container’s documentation and re-process it. 
  • Stuffing and Destuffing Container Charge: Some ports allow for and provide stuffing and de-stuffing container services in case the cargo was originally packed incorrectly. For example, when dangerous or hazardous goods are not packaged and sealed properly.  

How Can You Mitigate Port Fees? 

A lot of port fees are unfortunately the inevitable cost of being involved in the shipping and logistics industry. But the most avoidable port fees are detention and demurrage charges, and the easiest way to lessen these charges is to implement real-time tracking in your shipping journey. And this is where SFI can help you! 

With SFI’s Straight Tracking, our users can track their containers like an online order. By looking at the Shipment Milestone Status Bar and the Shipment Progression Status, you will have all the information you need at your fingertips. 

If you need any assistance regarding freight forwarding, contact SFI today and we’ll take care of your shipping needs. We have professionals ready to help resolve any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post The Unfortunate Cost of Freight Forwarding: Port Charges appeared first on Straight Forwarding.

Cargo Damage During Transportation: What Happens Next? 18 Apr 2022, 10:03 am

In the world of freight forwarding, uncontrollable mishaps can occur. From unpredictable weather conditions down to the smallest human error, there is a lot of room for error and for cargo damage during transportation in the shipping process. In an ideal world, shipping damage would never be an issue, but unfortunately, damaged freight is an inevitable cost in the freight forwarding industry. 

 The shipping process involves multiple parties, and is long and arduous. Therefore, shipments always run into the risk of being damaged during transportation. The various stages that cargo needs to go through increase the possibilities of mishandling, water exposure, and other types of unwanted damages. 

What Are the Most Common Causes of Shipping Damage? 

  • Improper Packaging 
      • Excessive empty space in the box (or container):  if there is too much empty space in the container, it’s highly likely that the products inside will be jostled around in transit, increasing the chances of cargo damage during transportation. 
      • Not enough padding or cushioning material: not all packages need to be wrapped in protective materials like bubble wrap and packing peanuts, but having enough filler will reduce the likelihood of shipping damage.  
    • Mishandling: there are several stages along the supply chain, and improper package handling can happen at any point during transportation. Even packages that are marked as “fragile” can undergo mishandling, leading to damaged freight.  
  • Quality Damage 
    • Exposure to water or humidity: certain shipments can be extra sensitive to temperature changes, and a lot of products may be ruined if they come in contact with water (through rainfall or exposed containers). For more details, read here: What Is Temperature Controlled Shipping? 
    • Infestation (for edible products): this only really applies to food products, as food attracts insects and rodents to their location. These animals often worm their way into shipments on large freight ships and cause product contamination.  

How Do You Handle Damaged Cargo? 

So you’ve received a package of damaged freight. What do you do next? Are shipping carriers liable for shipping damage? They can be! If you have proof that your cargo was damaged during transportation, you can file a damaged freight claim.  

In order to file a claim, make sure that you document everything and take detailed notes of any damages on the Bill of Lading (BOL) or Proof of Delivery (POD). Of course, if only the exterior boxes were damaged in the shipping process, and the products inside remain unharmed, there will be no grounds for your claim. However, if the freight inside is disfigured, be sure to include photos of the damaged freight, as those will support your claim. 

In general, you have two weeks to file a damaged freight claim. But carriers have a legal right to mitigate damages and the value of the claim. The opportunity to redeliver, salvage, or return the damaged freight must be given to them, or shipping carriers may have the legal right to deny any claims brought against them. So make sure you let your carrier or freight forwarding logistics company know that there was damaged freight in your shipment. 

Be sure to keep copies of documents on hand to strengthen your claim. Some copied documents you should keep are: 

  • Bill of Lading (BOL) or Proof of Delivery (POD) 
  • The packing slip, paid freight bill, and the invoice that documents the price paid for the damaged freight 
  • A standard claim form or a letter identifying the shipment and the claim amount 
  • Photos of the extent of damage

How Can Damaged Freight Be Avoided? 

There is no real solution that will allow shippers and carriers to completely avoid damaged freight. But there are steps to take that will lead to better shipment damage prevention.  

  • Utilize Proper Packaging Materials 
      • Use good quality pallets and make sure everything is wrapped properly. 
      • Fill up empty space with fillers to avoid cargo rattling within a container. 
      • Increase water resistance and separate liquid packages from dry packages. 
      • Separate fragile items with corrugated cardboard or layers of bubble wrap. 
      • Label everything correctly with “Fragile” and “This Side Up” stickers to increase a parcel’s chance of survival. 
  • Don’t Overlook Container Stuffing 
      • Don’t stack heavy parcels on top of lightweight parcels. 
      • Keep the overall weight in mind when stacking pallets and packages in a container. By distributing the weight evenly across the container, the opportunity for shipping damage caused by cargo movement decreases. 
      • For more details, read here: What Is Container Stuffing and Container Stripping? 
  • Purchase Shipping Insurance 
    • This is not exactly a way to prevent damaged freight, but purchasing shipping/parcel insurance is a good way to at least protect your business from financial damage. 

Start Working With SFI Today! 

Are you tired of dealing with damaged freight? Consider working with SFI today! We work with packaging industries for food and products, and can lessen cargo damage during transportation. If you need any assistance regarding freight forwarding, contact SFI today and we’ll take care of your shipping needs. We have professionals ready to help resolve any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post Cargo Damage During Transportation: What Happens Next? appeared first on Straight Forwarding.

A Guide to the Power of Attorney Shipping Document 13 Apr 2022, 9:58 am

What Is a Power of Attorney (POA) in Shipping Terms? 

In general, a Power of Attorney document is a legal document that transfers decision-making authority, and legally allows another party to make choices and filings on behalf of someone else. That’s no different in the freight forwarding industry. And more specifically, a POA in the freight forwarding world is used for customs clearance and reporting. 

In shipping terms, a POA is a legal document that shifts the customs clearance decision-making responsibility from importers and exporters to customs brokers or other authorized shipping agents. Recipients of a POA must be a US resident, and must be given express and documented permission to act on the behalf of importers and exporters sending goods through US customs. 

How Do You Get a POA for Shipping Needs? 

Obtaining a Power of Attorney in the shipping industry is not that difficult. For the most part, the majority of freight forwarding companies and customs brokers will be able to walk you through the process, what information you need to provide, and aid you in your quest for a POA. The cost of a POA varies depending on the freight forwarder or customs broker. But typically, the price of preparing a Power of Attorney shipping document is less than $200 USD. 

What Information Do You Need for a POA?  

Just like any other document you need to apply for, there are a few pieces of information that are required on all Power of Attorney shipping documents. These include: 

  • The importer’s or exporter’s full legal name, registered business name, and address
  • The business IRS number or customs-assigned number 
  • A declaration that the customs broker or shipping agent can act on behalf of the importer or exporter, and will be handling the customs business 
  • An authorized signature 

But Who Can Sign a POA? 

The authorized signature on a Power of Attorney shipping document must be a representative or officer of the business/company making the shipment. Of course, authority to sign is dependent on the company’s structure (individual, corporation, LLC, etc.). Special cases like European Union (EU) businesses importing into the United States require a secondary witness signature from another authorized personnel within the same company. 

Is a POA Required in Freight Forwarding? 

A Power of Attorney in the shipping world is not always mandatory. It’s only needed if you plan on delegating the responsibility of customs clearance and other miscellaneous administrative tasks to customs brokers or other shipping agents. It’s quite a convenient document, as a signed POA allows customs brokers and shipping agents to act on your behalf in filing and completing any necessary documentation for clearing and reporting goods through US Customs, as well as the US Census Bureau. 

Need Any Help? 

If you need any assistance regarding freight forwarding, contact SFI today and we’ll take care of your shipping needs. We have professionals ready to help smooth over any shipping problems you may have. Email us at info@sfi.com or call us at (909) 594-3400.

The post A Guide to the Power of Attorney Shipping Document appeared first on Straight Forwarding.

How Should You Get Better Spot Quotes? 11 Apr 2022, 6:15 am

What Is a Spot Quote?

A spot quote is a carrier rate that differs from contract rates, which provides the long-term security of price and capacity. A spot rate happens under the circumstances that a shipper suddenly has an urgent shipment or a carrier doesn’t have enough space. That is to say, spot quotes are more short-term (for tight deadline shipments) and spontaneous, and rates are also extremely sensitive to market conditions.

What Is the Decisive Factor of Spot Rates?

In the spot quote universe, price is like the moon. To be more specific, the relative position of the Sun and the Earth will affect the shadow on the moon. As a result, similar to the moon, the spot freight rate also depends on multiple participants in the market, such as suppliers, distributors, and brokers.

What Is the Process of Spot Quotes Like?

  1. The freight provider receives a quote request.
  2. The shipper set the standards for the shipment, including weight, load type, distance, deadline and other factors.
  3. The freight team takes all available resources into consideration and figures out a proper rate.
  4. The shipper then decides to use the service or continue to shop around for the best rate.

So, How Do We Get an Adequate Spot Rate? 

First of all, remember to offer detailed shipment information, or you may still end up paying an extra fee later if you exclude important information, such as pickup date and product weight. Furthermore, you should communicate with your providers about special requirements for your shipments if needed. You also have to keep in mind that you request spot quotes as early as possible. As the pickup day approaches, the price will become even higher. Last but not least, it’s critical for you not to set your appointments during holidays or weekends because you are about to pay more. 

Above all, we need to consider plenty of situations before choosing the provider. And it’s important for you not to settle for the cheapest provider. You should take their trust, profession, and service into account. Otherwise, a cheap quote may cost you more by damaged goods or missed products.

If you’re in need of expert advice, come talk to SFI today and we will provide you with the best possible service and quotes for your shipping needs. Feel free to email us at info@sfi.com or call us at (909) 594-3400.

 

The post How Should You Get Better Spot Quotes? appeared first on Straight Forwarding.

Everything You Need to Know About Oversized Loads 18 Mar 2022, 8:39 am

When Will You Need Permits?

If the dimensions or weight of your load surpass the limits, you’ll need an oversize/overweight load permit. Moreover, the permit is only issued for oversized loads when they can’t be trimmed in size or length. 

However, it’s been regulated that 3 conditions also need permits:

  1. They can’t fulfill the purpose for which they were designed.
  2. They are useless for their intended use.
  3. They require a lot of resources and time to dismantle(more than 8 hours).

 

So, What Kind of Limitations Are There?

  • Overheight: The load cannot be composed of articles stacked on top of each other because that will create more height.
  • Overwidth: The load cannot be composed of articles stacked beside each other because that will create extra width.
  • Overlength: The load cannot be composed of articles stacked one behind the other because that will create additional length.
  • Overweight: The load must not be composed of more than one article. When crossing bridges, loads over 45,000 kg gross weight must be transported at the lowest rate.

 

4 Types of Oversize/Overweight Permits

Oversize load permits have specific conditions that must be strictly followed.

  • Annual Permits: Annual Permits are used for recurring trips with oversized loads.
  • Project Permits: Project permits are issued to allow carriers to transport similar loads over the same route depending on the period of the contract.
  • Single Trip Permits: A single trip permit is issued for a one-way tour along a route for a limited period.

Special Vehicle Configuration Permits: Special vehicle configuration permits are issued for vehicles with specific weights.

Important Guidelines for Oversize Loads

If you’re preparing to transport oversize loads, you must consider lots of different aspects. It’s really essential to calculate the proper dimensions and weight of your shipments in order to apply for the right permits and plan for the correct type of equipment. After all, to meet customers’ expectations is a top priority.

 

  • Recognize the limits for flatbed loads 

The legal limits for shipments are recorded and fairly consistent in the United States. To sum up, the legal load width can be as much as 8.5 feet (102 inches), and the height can’t exceed 102 inches. In addition, legal length is generally 48 to 53 feet, and the maximum weight is about 46,000 pounds.

  • Other restrictions that might require you to apply permits 

Surprisingly, sometimes a shipment might not surpass the total weight limit, but it may exceed the per-axle limits. To tackle this problem, simply modifying the load can make the shipment legal and spare you from the need for permits.

  • Some shipments need travel escorts

Normally, shipments over 12 feet wide require travel escorts. More than that, shippers typically pay for accommodations, and would be included in total freight costs. 

If you’re in need of expert advice, come talk to SFI today and we will provide you with the best possible service and quotes for your shipping needs. 

Feel free to email info@sfi.com or call us at (909) 594-3400.     

The post Everything You Need to Know About Oversized Loads appeared first on Straight Forwarding.

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