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Building a House from Shipping Containers
Green building is becoming increasingly popular and important whether you are talking about residences or businesses. It is not surprising that companies such as Starbucks have taken great initiative by building an earth-friendly store out of shipping containers! Old shipping containers are difficult to dispose of, but they are easily repurposed. Creating a house from shipping containers does not seem like a far stretch, and neither does making apartment complexes!
You can see the great pictures of the Starbucks location here. Getting creative with shipping containers is good for publicity, and it is good for the environment. Wonder if other companies will follow their lead.
Even if a shipping container store front is not right for your business, would you consider making your house from shipping containers? These people look like they have a magic touch for turning the mundane and hardened look of a shipping container into a beautiful home!
Still not impressed? Check out this incredible housing complex built in Amsterdam. This is taking green building to a whole new level!
You don’t need to be building green to make a difference in the environment. We would love to hear what green initiatives your company is taking! And if you have questions about the normal use of shipping containers (you know… shipping freight…), please give us a call at (877) 764-9441.
Wood Pallet vs Plastic Pallet
The most common type of pallet used for material handling is definitely the wood pallet; however, there are situations where a plastic pallet would be a better choice. Below are some things to consider when evaluating whether a wood pallet or a plastic pallet would be better for your business.
Pros and Cons of Wood Pallets
One of the largest benefits of wood pallets is that they cost less than plastic pallets. Also, they can be repaired, hold more weight than plastic, and are recyclable. The downside is that they splinter, hold moisture, could contain bugs, and use fasteners that could damage your shipments.
Pros and Cons of Plastic Pallets
Even though they are three times more expensive than wood pallets, plastic pallets are clean, moisture resistant, will not harbor bugs, are durable, and do not use fasteners that could damage your shipments. However, in addition to the extra expense, they cannot be repaired very easily, cannot hold as much weight as wood, and have fire safety ratings. They also are more difficult to recycle and harder on the environment.
When does it make sense to use plastic pallets?
Given the above pros and cons, it is easy to see why most people go with the wood pallet for their material handling needs. Do plastic pallets ever make sense? The answer is “yes.”
- If your shipments weigh 1,500 pounds or less, then plastic pallets are an option.
- If your business is set up as a closed-loop warehouse, it may make sense to use plastic pallets. The reason is that your pallets will be returned to you, and they are a great way to maintain consistent costs since they are so durable.
- If you are not having your pallets returned to you, but would like to use plastic pallets (and have them returned), you can consider outside pallet management.
- If you are shipping fragile items, plastic pallets are safer because they do not have fasteners that could puncture or otherwise damage your items.
- If you are using your pallets as a store display (as commonly done in the electronics industry), it may be better to use a plastic pallet that displays nicely and is then returned.
- If you are shipping fragile products, consider the risk of using a wood pallet. Would the extra cost of a plastic pallet be offset by decreased risk of damages, delays, and unhappy customers?
In addition to everything else, it is important to mention that you should not use plastic pallets when shipping internationally. There are code regulations that require wooden pallets, and you would not be getting your pallets back so the cost would not make sense.
Have international shipments? We can help with those as well!
Head to PNG Worldwide for more information.
Keys to Affordable Air Freight
Just like any other shipping matter, it is important to pay attention to trends in air freight rates, carrier capacity, routes, and other company specific data. Due to the volume of freight that we manage, we have noticed that there are a few main things that can influence how you ship your air freight.
Pay Attention to Arrival Times
You send air freight a few times each week to the same destination to meet the demand of your customer; however, is your customer receiving those shipments in a timely fashion? In most cases, it would be worthwhile to consolidate shipments since air freight transit times can vary anyway.
Evaluate Destination Options
You can’t change where your shipment needs to end up, but you can change how it gets there. Certain areas will have lower costs for air freight, and then you can transfer your freight to a truck or train to get it to its ultimate destination. We can help you find these obscure destinations if you contact us at (877) 764-9441.
Consider the Season
You are probably aware that shipping traffic starts increasing in August or September to prepare for the holiday season. But there is another increase in shipping freight that occurs in the spring. This may be due to the home improvement season or the Spring holidays. Regardless of the reason, it is important to keep in mind that transit times may be a little longer, rates may increase, and availability may be lessened.
Keep an Eye on Capacity
When shipping freight of any sort (air freight, ocean freight, or other means), the carriers try to match the demand of the marketplace. Since no one can immediately change to match the trends, you can be caught in a situation where air freight carriers decrease their capacity to save themselves money. If the demand then increases, finding shipping solutions then becomes more difficult.
Have domestic shipments? We can help with those as well!
Head to PNG Logistics for more information.
Full Truckload Shipping Benefits & Drawbacks
We talk a lot about LTL shipping, and we are highly specialized in that area. However, that does not mean that full truckload shipping is not an option. In some cases it may be beneficial for you to consider full truckload shipping – in other cases it may not be worth the hassle.
Potential Drawbacks of Full Truckloads
The full truckload industry currently is in favor of the drivers rather than the businesses. This is because there is more volume that needs shipped than there are drivers who can carry it. This is wonderful for the drivers, but it would require a little bit of luck on your part to find the right fit. For example, full truckload drivers are more willing to go to high volume locations such as California or somewhere else where there is a port or a main hub that can refill his truck (since a truck driver would never want to have to drive without freight since then they would not be getting paid for those hours). So if you are shipping to a remote place, your shipping rates will be higher than shipping to a high volume destination even if the distance is the same. It is more expensive to ship from Ohio to Pennsylvania than it is to ship from Pennsylvania to Ohio. Why? Because Ohio has more manufacturing companies and opens up to the Midwest for easy routes.
Potential Benefits of Full Truckloads
Depending on the type of freight that you are shipping there could be cost savings when choosing to go with a full truckload. It is easy to understand why one full truckload may be less expensive than a few LTL shipments. Also, full truckload rates do not depend on the classification of the shipment. Instead the pricing depends on the lane and the miles traveled. If you are shipping to a high volume destination, then chances are that a driver would give you a good rate on your shipment because it is beneficial to them as well.
Other Important Information about Full Truckloads
- A full truckload = 24 pallets or 44,000 pounds.
- You have 2 hours to load and 2 hours to unload. After that, you will have to pay a certain amount per hour.
- 2 types of full truckload shipments that PNG Logistics handles
- Flatbeds, which give you the capability to roll things on or off or carry awkward items.
- Vans, which are the trailers pulled behind the truck that can be backed up to a bay.
As always, we are happy to answer any questions that you may have. (877) 764-9441.
Have international shipments? We can help with those as well!
Head to PNG Worldwide for more information.
Generalized System of Preferences (GSP) Information
The U.S. Generalized System of Preferences (GSP) is a international shipping program that was put in place in order to aid in economic growth of developing countries. This program provides duty-free entry for certain territories and countries. This program had expired on December 31, 2010; however, President Obama signed legislation in October, 2011 which will make GSP trade benefits retroactive from January 1, 2011. This means that some of our customers will be receiving refund checks from the U.S. Treasury for Duties.
What Articles are Eligible for GSP Benefits?
You can find which articles qualify for GSP benefits in the Harmonized Tariff Schedule of the United States (which can be found here). You can also find a list of non-eligible items here.
An import can be eligible for duty free treatment through the Generalized System of Preferences (GSP) when it meets the following requirements:
- Must be on the GSP list of eligible articles
- Must be imported from a Beneficiary Developing Country (BDC)
- The particular BDC needs to be eligible for GSP duty free treatment for that particular article
- Must be the product of a BDC and meet value-added requirements
- The importer/exporter must put the right GSP Special Program Indicator (SPI) on the imported article
How Do I Claim GSP Benefits?
The importer is the one who needs to claim the preference for the GSP benefit by using the SPI code “A” or “A+” before the HTSUS tariff-line number when completing the documents for entry. There are other ways to claim GSP after the fact, but they become more complicated.
If you filed your entries electronically, you will automatically be reimbursed for duties paid during the lapse in the GSP program if your products were eligible, and you used the appropriate SPI code. If you did not use the special program indicator code, go here for instructions on how to file for reimbursement.
As with many international shipping matters, dealing with potential GSP benefits can be confusing and overwhelming. Please, give us a call at (877) 764-9441 so that we can help you through the process and give you specific information based on your individual logistics needs.
Have domestic shipments? We can help with those as well!
Head to PNG Logistics for more information.
How to Determine Freight Class When Shipping Machinery
One of the most common items shipped today is machinery and machinery parts. As we have discussed in previous blogs, when shipping machinery or anything else LTL via common carrier it is important to determine freight class. Most machinery and machinery parts will be classified as Item 133300 with different sub numbers depending on the density and packaging.
Determine Density
Since density plays a key role in determining freight class, you need to calculate the density.
Example:
- You have a pallet that is 48x48x60 and weighs 640 lbs.
- You use the formula: weight/((LxWxH)/1728)
- Step one: multiply dimensions & divide by 1728. (48x48x60)/1728 = 80.
- Step two: Divide weight by step one result. 640/80 = 8.
- Your item would have a density of 8 lbs per cubic foot.
Another benefit of using our TMS platform is that you could ignore the math lesson above because it will calculate your density for you automatically. For more information on density and how it is calculated, you can go to our previous blog post about determining density.
Remember to Consider Packaging Method
Once you have calculated your density, simply match up whether your item is in boxes, crates, or packaging or if it is not (such as being loose on pallets). In continuation of our example above, we are saying that the machinery we are shipping is not crated. This means that it could fall under one of the 3 listings below.
133300-06 Class-250
If the Density is Less than 8
133300-07 Class-110
If the density is 8 but less than 15
133300-08 Class-70
If the density is 15 or greater
In this example, the item would be Class 110 because the density was 8. Since the density is on the cusp of Class 110 and Class 250, the shipment could switch to Class 250 if the weight was less than indicated or if the skid was larger than indicated.
If our item in the density example was crated or in boxes, the following rules would apply, and the freight class would be 92.5.
133300-02 Class-175
If the density is Less than 8
133300-03 Class-92.5
If the density is 8 but less than 15
133300-04 Class-70
If the density is 15 or greater
Other Factors When Shipping Machinery
Also, when shipping machinery or parts during the winter months, please note that there are special considerations if the machinery has water or other freezable liquid in it.
When shipping Machinery that is a particularly high value product it is important to let your logistics provider know the value so that we can ascertain whether additional service is needed. We also understand that very often shipping machinery is a time sensitive matter since it is critical to production for many manufacturers. So if you need your shipment guaranteed or expedited talk to us about it by calling (877) 764-9441.
A lot has changed with NMFC over the years, and we keep up to date with all the latest changes. Previously in order to look at an item listing you had to sort through a thick book, and every time there was an update you would get an appendix to listings. Now we get CDs with updates. Give us a call so that we can help you correctly classify your freight at (877) 764-9441.
Have international shipments? We can help with those as well!
Head to PNG Worldwide for more information.
International Shipping Rates Increase for Ocean Freight
While 2011 was a good year for shippers of international freight across the industry, you can expect some rate increases for ocean freight in 2012.
Falling Rates
Last year people noticed falling rates on imports from China as well as some other key lanes due to a variety of international shipping factors. One of the main reasons for falling rates on imports is over capacity. Overall, there were more containers than shipments. There was also tough competition with other international ocean carriers so many carriers opted to leave most rates the same and only cut rates on certain lanes.
Rising Rates
Many in the international shipping industry will see ocean rates on both 20 and 40 foot containers go up in 2012. Maersk already put in a GRI effective January 1st, which will cause ocean rates for shipments from the far East to go up. Happag Lloyd is also a major player who put peak season surcharges in place on containers travelling from the far East to the U.S. Most carriers are starting 2012 with either peak season surcharges (PSS) or general rate increases (GRI). Some carriers are even imposing both for 2012.
Protecting Yourself
The international freight market is a very volatile market. Last year we saw a swing in the shippers favor, and this year we expect carriers to be more favored than shippers. Despite what is happening in the market, PNG Logistics can help you navigate the trends, price increases, and other potential difficulties. We are able to leverage better pricing due to our large volume. And we are able to recognize trends and find you better solutions for your freight. Give us a call to check out your options at (877) 764-9441.
Have domestic shipments? We can help with those as well!
Head to PNG Logistics for more information.
2011 Events that Affected International Shipping
There were many significant events in 2011 that affected international shipping and consumer prices around the world. 2011 events that had notable affects on the shipping industry include natural disasters and political disagreements. These events show us how truly interconnected we are to international matters. A storm in one area can cause a ripple effect for months to come in many different areas of the world.
2011 Events
Occupy Wall Street
The Occupy Wall Street movement began in September of 2011. The movement began in protest of economic inequality. The Occupy Wall Street movement has spread internationally and has threatened to shut down numerous ports, which would obviously have significant impacts on the shipping industry.
East Coast Earthquake
In August of 2011, much of the eastern seaboard in the United States felt tremors from a 5.8 magnitude earthquake that hit Virginia. Over a dozen states were affected by this earthquake.
Japan Earthquake & Tsunami
In March of 2011, a 9.0 magnitude undersea earthquake caused a horrific tsunami that destroyed the coast of Japan. There was a definite impact on the consumer market due to the devastation.
Hurricane Irene
In August of 2011, Hurricane Irene hit the United States. It tore through the East Coast and caused extensive damage. Goods were damaged. Transportation was impossible for many during the storm.
There were many 2011 events that have not been included in this post, please share any events that you feel had a significant impact on the world economy in 2011.
Have domestic shipments? We can help with those as well!
Head to PNG Logistics for more information.
Changes in Freight in 2011
As logistics services professionals, we noticed some trends in the world of freight in 2011. These trends will definitely be continuing into 2012 and most of them will probably continue to grow. The carriers have had a lot of control of the freight in 2011 due to an increase in freight volume and shortage of drivers. Also, everyone is looking to save money, which means stricter policies.
Class and Weight Inspections
Carriers are inspecting and reweighing almost every single piece of freight that they handle. They are scrutinizing the class on a very large percentage of shipments. And many carriers have even added personnel to only handle inspections and verifications of the class and weight of shipments. During this difficult economic time, it makes sense for the carriers to be taking these extra precautions in order to recoup revenue.
We have said it before, and we will continue to stress the importance of classifying your shipments correctly and specifying their correct weight. This is a great way to gain an accurate rate quote and ensure a smooth transit and efficient delivery. It is always helpful to talk to a logistics services professional about any shipment that you are not 100% sure about.
Packaging Standards
Many carriers are also increasing their standards for packaging. We have seen many shipments that are required to now be crated even though they had not been in the past. Carriers are doing this as a way to reduce risk of damages and the hassle and expense of the resulting claims.
This is not necessarily a bad thing. It may slightly increase your cost up front (due to the additional packaging standards); however, your risk is also reduced. You are more likely to have your freight arrive safely, securely, and on time when these packaging standards are higher.
Higher Costs
There have been price increases across the board in regards to freight in 2011. This is partially due to increased fuel prices and also due to the shortage of drivers and freight volume increases. Since there is more freight that needs moved than drivers who can move it, carriers have the luxury of being picky about the type of freight that they move. They are able to increase costs and add stipulations for difficult freight (such as oversized or unstackable freight).
The good news is that the economy in the realm of logistics services is improving. Hopefully, the number of drivers will catch up to the demand in the shipping industry. In the mean time, give us a call at (877) 764-9441 to discuss options for keeping your costs low.
Have a safe and enjoyable New Year’s Weekend!
Have international shipments? We can help with those as well!
Head to PNG Worldwide for more information.
