Tuesday, May 31, 2016

HOW TO CHOOSE PALLETS IN SHIPPING: PLASTIC VS. WOODEN?

Pallets, as a common freight packaging option, are used in logistics of the transportation process, from storing the items in a warehouse to enabling them to be moved in bulk as well as keeping them protected and allow for easy movements during transportation.
A pallet can be described as a horizontal platform device, which is used as a base for transporting, handling, storing and assembling both products and materials as a unit load. In addition to this, pallets are designed to ensure that no damage occurs to the goods inside when another pallet is loaded on top of it.
Just like shipping containers, with safe and easy-handle properties, pallets are widely used across the world in almost every warehouse, truck and cargo ship.
As compared to non-palletized dispatching of cargo consignments, pallet shipping is definitely costly. However, their cost-effectiveness by effectively minimizing the potential risks and damages to the consignments makes the pallet cargo a must-have in the freight shipping industry.
When it comes to pallet material, there are two chief options at your disposal: Plastic Pallets and Wooden Pallets.
This post will assess the advantages and disadvantages associated with both in order to help you make the right decision for your shipping needs. So, keep on reading to find out all you need to know.

Wooden Pallets


Advantages

There are many advantages associated with the use of wooden pallets.
One of the main reasons people opt for this type of pallet is because it tends to be the least expensive. This is ideal for those purchasing on a budget.
Pallets made of wood are also easy to repair, which represents another way in which you can save money if you go for this option. All you need to do is remove and replace one of the broken wood boards, rather than replace the pallet as a whole.
In addition to this, wood offers benefits in relation to recycling. The wood used to construct the pallet can be collected from recycled materials and once the pallet is no longer needed it can then be recycled into paper and mulch.
Aside from this, wood boasts other benefits in the sense that it is a lot easier and quicker to construct. This is especially significant for those who are using a substantial number of pallets.
On the whole, wood is strong and robust. It also offers a greater level of security because they boast a high level of friction, this is even better compared with plastic. This ensures that the shipment do not easily slide off when they are on the pallet.

Disadvantages

There are also some negatives you need to bear in mind as well.
Wood has its own disadvantages. One of the main problems is the fact that wood is an organic material and consequently it can quickly warp, weaken or splinter. Thus, whilst you may save money in relation to your initial start up costs, you may actually end up spending more because of continual reordering costs.
The individuals who handle the pallets often experience nasty surprises because of protruding nails or splinters. Needless to say, a nail or splinter digging in your hand is not a pleasant experience.
Aside from this, wood pallets are extremely difficult to clean. This is because bacteria and fungus is encouraged to grow when wood becomes wet. Last but not least, wood has to be treated in order to be shipped internationally because wood can contain invasive species of insects or plant diseases.

Plastic Pallets


Advantages

Plastic pallets also offer an excellent solution to pallet logistics.
One of the best things about plastic is the fact that it lasts for a long time. You can expect to get at least ten years of use out of plastic material, thus you can save money in the long run.
Plastic also provides you with another way to reduce your expenditure by reducing shipping costs, as plastic is approximately 30 percent lighter than wood.
You also don’t have to deal with interruptions in delivery. When shipping wood you have timber pallet regulations to contend with.
Aside from the points that have been mentioned, it is also worth noting that plastic is safe to handle, as you don’t have to worry about chipping, splinters and screw nails.
Plastic is also resistant to chemicals, such as alkalis and acids, and thus they can be cleaned easily. In order to remove bacteria plastic pallets can be chemically sanitised, steam cleaned or hot washed. If that wasn't enough, they are entirely recyclable and can be turned back into a new pallet.

Disadvantages

As mentioned earlier in this post, plastic is more expensive than wood, and thus the start up costs can be substantial. Thus, this is an obvious downside.
In addition to this, another disadvantage is the fact that plastic pallets cannot be easily repaired. If the plastic breaks or cracks, you would have to melt it down and re-mould it in order to make another one. This is obviously a lengthy and inefficient process and thus would lead most people to purchasing a new pallet instead.
As touched upon earlier, plastic does not boast as much friction as wood does. This is detrimental because the materials and products can easily end up sliding or falling off the pallet if you are not careful. Thus, this is something you should be wary of.
Moreover, you need to be sure you purchase quality plastic otherwise the pallet can easily be too weak and susceptible to breakages.

When selecting the right material for your logistics and transportation needs, there is no right or wrong solution. It is all about finding what works for you.

Monday, May 30, 2016

10 MOST BUSIEST CONTAINER PORTS

No. 10: Tianjin, China             

The Tianjin port in China recorded 13.01 million TEUs in 2013, up from 12.3 million in 2012 and 11.59 million in 2011. TEU stands for "twenty-foot equivalent units". A standard cargo carrier equals two TEUs.

No. 9: Jebel Ali Port in Dubai, U.A.E.                

This Dubai port handled 13.64 million TEUs last year, up from 13.3 million in 2012 and 13 million TEUs in 2011, according to the World Shipping Council.  The U.A.E. has successfully positioned itself as the hub between East and West shipping lanes, with more capacity currently being built out at the Khalifa Port outside of Abu Dhabi, the U.A.E. capital.


No. 8: Guangzhou Harbor, China

Despite a slowdown in exports out of China, the Guangzhou port continues to handle more cargo.  In 2013 it handled 15.31 million TEUs of cargo, up from 14.74 million in 2012 and 14.42 million in 2011.


No. 7: Qingdao, China                                                                                    

Qingdao handled 15.52 million TEUs last year, up again from the 14.5 million in 2012 and the 13.02 million TEUs recorded in 2011. Not bad for a country supposedly going through a hard landing.


No. 6: Ningbo-Zhoushan Port, China

The Ningbo-Zhoushan Port handled 17.33 million TEUs in 2013, up from the 16.83 million in 2012 and the 14.72 million TEUs in 2011.


No. 5: Busan Port, South Korea

Continued growth in shipping at Busan. Last year saw 17.69 million TEUs go through the port, up from the 17.04 million in 2012 and 16.18 million in 2011.


No. 4: Hong Kong

The port of Hong Kong used to be the biggest of all Chinese ports, but not anymore.  Last year, Hong Kong continued to handle a dwindling number of containers as more and more ships head north to the mainland instead.  The Hong Kong container port terminal handled 22.35 million TEUs in 2013, down from 23.12 million in 2012 and 24.38 million TEUs in 2011.


No. 3: Shenzhen

Shenzhen is now the second largest Chinese port. Last year it handled 23.28 million TEUs, up from 22.94 million in 2012 and 22.57 million TEUs in 2011, according to the World Shipping Council.


No. 2: Singapore

The Port of Singapore is no longer No. 1, but container traffic remains strong.  Last year, the port recorded 32.63 million TEUs compared with the 31.65 million in 2012 and 29.94 million TEUs in 2011.


The New Number One.

The new No. 1 is the Port of Shanghai.  It handled 33.62 million TEUs of cargo in 2013, up from 32.53 million in 2012 and the 31.74 million TEUs reported in 2011.  The biggest U.S. port is puny by comparison.

WHY YOUR FREIGHT SHIPPING DELAYS?

Lots of cargo shipments move from one point to the other every single day. There’s always someone waiting on the other side for the shipment to arrive.
Estimated transit time is meant to be as accurate as possible, so that the consignee can know when to expect their cargo and when to arrange a pick up. If it does not arrive as planned, this can create problems both for the shipper and the consignee.
Everyone don’t like delay, but when it comes to ocean freight transportation, chances are big that you will have some sort of delay at some point that will be completely beyond your control and may be beyond your supplier’s control as well.
As an importer, you hope to know why your shipping delays. Here’s a list of main reasons, some of them you can avoid.

Before the vessel departure
1. No spaces of the scheduled vessel.
This happens from time to time, especially when holiday shipping or busy season shipping.
Solution: Plan ahead and book your space two weeks earlier before the production is done.

2. Can’t deliver your goods to the port before the cut off time.
For FCL, the consignor usually pick up the container and load it by themselves in their facility, then deliver the full container back to CY (container yard) or CFS (container freight station).
For LCL, the consignor need to deliver the shipment to the warehouse of the forwarder for consolidation.
No matter it’s FCL or LCL, there’s always a Cut-Off date issued by the carrier. Missing the date means missing the scheduled vessel.
Solution: Pick up the empty container as early as possible, and make all the arrangements for land transportation earlier.

3. Customs declaration issue before the cut off time.
3.1 Improper categorization of HS code
As you may know, the suppliers can get tax refund from the government based on the HS code of the products for most items. The tax refund rate vary. And because of that, some suppliers will use wrong HS code when conducting customs clearance, just to get higher tax rebate rate.
If the customs find it out, they will detain the products until the supplier correct the HS code and pay penalty.
3.2 Intelligence property rights protection
If the product has brand, the supplier will be requested to submit an authorization letter from the brand owner. This process will cost long time if not prepared accordingly.
Solution: Make sure every paperwork needed is correct and in time.

4. The vessel left late due to weather.
Solution: Nothing
Your action: Get the information as early as possible, then notice every party involved at your side.
The easiest way is to plan ahead and book in advance and drop off your cargo as soon as you are allowed to gate it in.
Work closely with your supplier and your cargo agent to make the shipment as efficient as possible.

During the transit
The main reason for cargo delays during the process is that the vessel changed the routing and will make additional stops.
According to the latest research from Drewry, the average on-time rates of container carriers are 64%, and Maersk Line is the No. 1 with about 80% punctuality rate.
Nothing you can do about this, even including your agent. But the freight forwarder can keep touch with the carrier, and let you know the adjusted ETA as soon as possible.

After the transit
When the steamship crossed the ocean, and were arriving at the destination port, trouble still happens. Such as the latest West Coast dockworkers dispute.
This kind of port delays can be avoided by choosing a different destination earlier. It may result in higher price, but the time saved are more valuable in some cases.

Holiday Impact
There are many various holidays, usually one day or three days break. These holiday have little effect on shipping. But you have to pay attention to following 2 major & long holidays.
Here’s the shipping situation:
1. Too much cargo to ship
Booking container space is very difficult in Jan, and the freight cost is relatively high, because everyone wants their goods departure before the New Year.
2. Too less cargo to ship
Booking container space is so easy in March, and the freight cost is relatively low, because the manufacturers need time for production after the New Year.
Solution: Try to avoid these holidays, or fully prepare for long breaks.
Your action: Get a timetable from your supplier, because different situations vary from different factories.

What you should do when your shipping delays?
Scheduling enough time to get your product through customs and onto a ship can be tricky business. Plan ahead as far as you can and work with suppliers to constantly update the final manufacturing completion date accordingly.
When your delivery delays, the best thing you can do is be patient, and communicate consistently with your freight forwarder. Make sure you get all the information available, so that you can communicate honestly and directly with your production, customers, retailers or whomever the delay may concern.
Even if you arrange everything ahead and have a plan, sometimes your shipment will be delayed, so be sure to add some buffer days into your supply chain timeline.