Proper Freight Packaging Saves Money

Third-Party Transportation Specialists Most Cost-Effective Solution

Oct 30, 2008 Daniel Workman

Ocean & air shipment packaging demands masterful packing for the toughest leg of the journey, tasks that many entrepreneurs delegate to transportation logistics firms.

The proper packaging of export shipments represents one of the riskiest yet overlooked processes in international trade.

Handling and storage account for about 40% of all losses in export shipping. Water damage causes another 10%, since constant changes in temperature and humidity results in condensation building up inside the package and the shipment container. A large rice shipment contaminated with moisture can expand to damage or sink a cargo ship.

If product shipments are properly packaged, these risks are cut in half.

Aspects of Proper Packaging

Packaging must be strong enough to withstand loading and unloading, processes that happen many times between original shipment and final destination. Proper packing requires blocking and bracing, the process of providing physical and mechanical protection that mitigates the free movement of shipped items.

For ocean or air freight, the most cost-effective way to ship overseas usually involves loading packaged goods into cases, then onto skids which are in turn loaded into containers. A standard container is 20 feet or 40 feet, which when filled to its allowable weight measurement is called a Full Container Load (FCL).

FCL containers attract lower freight rates than an equivalent load of loose cargo packed into a container with the products of other consignees shipping to the same address. Typically, loose cargo requires an additional step since each consignee’s load must be moved to a container freight station for containerization.

Packaging Ocean Shipments

Ocean shipments require that trucks move the cargo to the nearest railway ramp for a journey by train to a container port. From the container port, shipments are loaded onto the ship.

Each transfer point sees shipment containers moving from truck to railway car or from railway car to shipping vessel. These steps increase the risk of impact and handling damages.

Water transportation generally subjects cargo to a much higher degree of rough handling than air shipments. A cargo ship moves in 6 directions all at once: pitching, yawing, heaving, swaying, surging and rolling.

Packaging Air Shipments

Typically, air freight shipments are first transported via truck to the nearest international airport for handling and storage. Ramps are used to transfer cargo from the airport floor via conveyor belts to the plane’s cargo space.

Often air cargo is transferred to other airlines before the shipment reaches its final destination or is put into storage at customs in the importer’s country.

Aircrafts subject their cargo to travelling stresses including acceleration and deceleration, turbulence, altitude changes, temperature changes and load shifting. Like ocean shipments, air cargo packaging must survive different environments ranging from Arctic air to the Sahara’s hot, dry winds.

Special Case Markings

Proper packaging includes markings on the shipment cases. Unless importing country regulations require otherwise, outer packaging should not identify shipment contents, brand names or trademarks that could tempt potential thieves. Often special codes or “blind marks” are used to discreetly represent shipment loads.

Case markings must identify a shipment’s:

• Anticipated ports of export and import
• Country of origin
• Order number
• Gross and net weights
• Special handling instructions.

Most Cost-effective Packaging Solutions

Global trade site Alibaba lists well over 63,000 packaging material products, as well as 10,000 pallet products at competitive prices. Entrepreneurs can negotiate top-quality packaging and shipment supplies via Alibaba.

However, proper packaging requirements add additional complexities, processes and risks to an international trade venture.

Many small and medium-sized international entrepreneurs instead contract out their shipping tasks to a reputable transportation company skilled in proper packaging. This enables producers to focus on manufacturing products efficiently and managing inventories effectively.

Reference:

David M. Neiport, A Tour of International Trade (Prentice Hall 2000).

The copyright of the article Proper Freight Packaging Saves Money in International Trade is owned by Daniel Workman. Permission to republish Proper Freight Packaging Saves Money in print or online must be granted by the author in writing.

Packaged cases waiting for shipment from factory