How does a Pre-shipment inspection work?

 

One element in the supply chain is to verify what you bought before shipping it, which is called pre-shipment inspection (PSI). These examinations are made to be certain your products meet quality standards, technical specifications, contractual requirements and ensure they are ready to be sent to their destination market.

 

A pre-shipment inspection can be arranged at any stage: at the manufacturer’s warehouse, when the importer receives the items, or when the supplier prepares the final shipment for sale.

 

The procedure is simple, but there are many subtle points that we are going to take a look at to understand how a pre-shipment inspection works. 

 

What Is Pre-Shipment Inspection?

 

Pre-shipment inspection allows you to fix any problems before receiving or paying for the product; due to inspectors checking items before shipping. These procedures occur once 100% of the order is ready to eliminate the risks. This is the last opportunity to take corrective action before your product is shipped, making it an effective tool to protect your product against costly import risks.

 

A number of obligations were included in the “Agreement on Pre-Shipment Inspection,” based on  the World Trade Organisation (WTO); stating that pre-shipment investigations should be applied according to the following principles:

 

  • The procedure should be non-discriminatory
  • Avoidance of delays
  • Pre-shipment inspection should be transparent
  • Protection of confidential business information
  • There should be no conflict of interest between the parties. 
  • Price verification based on the price of identical or similar products in the country of exportation

 

Business photo created by senivpetro – www.freepik.com

The purposes of a pre-shipment inspection 

The pre-shipment inspection usually covers functionality, performance, durability, overall appearance, and dimensions. Some of its purposes are: 

 

  • Examine the quality, quantity, and loading of the shipment.
  • Check products for any defects.
  • Ensure products meet the safety requirements. 
  • Dimensional inspection. 
  • Documentation review.
  • Packing and marking checks.
  • Visual inspection.
  • Witness sample measurements in factory.
  • Check for appropriate handling during loading.
  • Verify the stowing, fastening, and wedging on the mode of transport.
  • Issue report for import and billing.

 

In CARGO CARE SERVICES our pre-shipment inspection offers you independent and professional verification of the quality, quantity, marking, packing, and loading of your shipments, helping you meet quality standards, technical specifications, and contractual requirements.

CONTACT US, you’ll get a transparent and quick report so you can make rapid, cost-saving decisions!

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What are the best practices for Equipment Packaging and Crating?

 

Generally, when you deal with machinery or equipment there is also a considerable sum of money at stake. Therefore, it’s important that these valuable assets are packaged and crated properly and carefully. So, you should make sure to take into serious consideration this topic because due to this your items are going to survive the move without any consequences.

Therefore, we are going to take a look at the best practices of  Machinery/Equipment Packaging and Crating with you, in order your items can be in the appropriate condition before the move.

Assessing Your Machinery or Equipment for Packaging and Crating

A good starting point is to gather the people in your organization who understand the item best and consider these key aspects about the project. These includes:

  • If the item can be broken down into smaller components for shipping.
  • Which items you should crate or packaging and which ones you should not.
  • If the item will be disassembled and reassembled at the destination site, if you have staff to perform that work.
  • If the item needs to be transported in a closed container, or can it tolerate exposure to the elements.
  • The weight and the dimensions.
  • If the item’s dimensions determine that it is considered an “oversize load” by any of the states or countries through which it will be carried.
  • If there is anything else the crating, packaging company will need to know to safely transport the item. You should review the manual issued by the manufacturer.

As soon as you have this resolved, you’ll have a good understanding of the scope of your equipment project.

 

Before one of our jobs

Select a Specialty Crating and Packaging Company

Not every company with the capability to haul large assets has a background in machinery packaging, crating, blocking and bracing. The best piece of advice on this subject should come from specialists in the industry.

You should look for one that has expertise in some or all of these points, as needed for your project

  • Designing and building custom crates, pallets and skids
  • Use enough cushioning material
  • ISPM 15 export crates and container loading

You also want to work with a company that can assist you to issue insurance policy if needed.

 

After!

Hire experts to take care of this job properly

You should go on and call a professional packing and crating company for help.The fact is that no one is going to do a better job of packing your items than the professionals  who do it on a daily basis.  They know how to go about this business and they will also have an unlimited supply of packaging and  crating material on their hands. So, they will surely be able to handle with packing & crating equipment easily.

Packing & crating your machinery / equipment is the way to make sure that it will arrive in great conditions. It is important to do this  in the proper  way. If not, you are probably going to waste time, money and energy, but will not achieve anything. Therefore, if you realize that you cannot cope with the load, at CARGO CARE SERVICES we have 12 years of experience, in packaging and crating, we can help you just…

CONTACT US!

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FTZ vs Bonded Warehouses: which one is the best for you?

 

For some businesses, it is better to store the merchandise in an FTZ while others will benefit from a bonded warehouse. Even though these facilities are similar, they have differences, such as the purpose of each warehouse, what you can do with the goods and limitations on storage.  So, there are a few key points to consider before making your decision, as below: 

Foreign Trade Zone (FTZ)

A foreign trade zone is an area located in or near US ports of entry.  FTZ is considered to be outside the customs territory of the US for the purposes of duty assessment and entry. 

These areas are excluded from paying duties when the shipment arrives. Furthermore, there are also no duties payable on re-exported products. Manufacturing is also authorised within an FTZ with no immediate duties or taxes payable. Payment of duties is only due when the merchandise enters into US territory. 

 

The benefits of using FTZs are:

 

  • Merchandise is not subject to U.S. duty or excise tax, they are paid when the goods are transferred from the zone for consumption.
  • There is an unlimited amount of time that the goods can be warehoused in a foreign trade zone, whether or not subject to duty.
  • Some tangible personal property is generally exempt from state and local ad valorem taxes.
  • Goods may be exported from the FTZ free of duty and excise tax.
  • CBP security requirements provide protection against theft.

 

bonded warehouse Work photo created by freepik – www.freepik.com   If you are storing foreign goods for export, Customs bonded warehouses could be the best choice.

Bonded Warehouses

Bonded warehouses are a building or other secured area in which imported dutiable merchandise may be stored under the direct control and supervision of the US customs officials. As with a FTZ, duties are not charged until the goods are removed for consumption and the export of the items is also duty-free.

Bonded warehouses are only allowed to hold foreign goods and manufacturing is not allowed. Under this kind of program, each product must have a customs entry filed and duties and tariffs are assessed upon entry. Moreover, customs maintains primary control of all products and determines where, when, and how they can be moved. Unlike FTZ, there is a five-year limit on products being stored in this kind of warehouse.

There are 11 different types of bonded warehouses, as well as premises that are owned or leased by the government; private warehouses for the storage of imports; and public-bonded warehouses for the storage of imported products. 

 

The benefits of using a Customs Bonded Warehouse are:

 

  • Goods stored there can be transferred between other bonded warehouses.
  • In the U.S. imported goods are permitted to be stored for up to five years. This creates a chance to delay the introduction of a product to market until there is greater demand.
  • Importers have greater control over their finances because no duty is collected until the product is withdrawn for consumption. If an importer is unable to find a buyer in the U.S., the products can be exported without paying duty.
  • Duties owed on products that have been manipulated are decided at the time of withdrawal from the bonded warehouse.

Which one is the best for you?

 

The difference between bonded warehouses and FTZ warehouses essentially is based on how much control you want over the customs process and your products. 

Bonded warehouses may look like with too many restrictions, but importers who want to sell goods domestically won’t benefit much from using FTZs.The advantages of FTZs mainly apply to shipments that will ultimately end up back overseas for sale. Shippers who depend on the domestic marketplace for retail will need to study the pros and cons of bonded warehouses.

Also if you are storing foreign goods for export, Customs bonded warehouses could be the best choice. In CARGO CARE SERVICES we count with Bonded Warehouses overall the US, contact us and we will let you know our best rates available. 

 

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7 Reasons you will love about Cargo Insurance

 

You’re investing in your company every time you have a shipment. It’s surprising how many businesses don’t protect that investment with cargo insurance and pay a lot for it at the end.

Cargo insurance covers loss and/or damage of cargo while it is in transit between point A to point B. Many try to save a little money upfront by not insuring their cargo,  but here we´re going to show you why this is not a good idea and why  you will love to ensure your cargo:

1.Reduce exposure to financial loss

If you’re an exporter who has not been paid for the merchandise at the time of shipment, or an importer who has paid for all or part of the goods prior to receiving them, you run the risk of suffering a financial loss if the goods are lost or damaged during transport.

Whether your cargo is valued at $6,000USD or $6,000,000USD, that is your direct loss if your cargo is destroyed, lost or stolen. So,  if you can’t afford to lose it, insure it. Cargo insurance reduces exposure to cargo loss.

2. Coverage for limited carrier liability

The carriers, by law, are not responsible for many common causes of loss that occur in transport. And, even if they are liable, in the event of a loss carriers’ liability is limited. In most cases, you will only recover a small portion from the carrier. More information in our post Carrier Liability vs All Risk Cargo Insurance 

3. Cargo Insurance is flexible

Cargo insurance is not one size fits all. Different sizes of shippers and their commodities may have different needs in every sense. You don’t have to pass on cargo insurance because the ‘general policy’ doesn’t fit your needs. Why pay for coverage you don’t need?. If you currently buy cargo insurance and your vendor does not recognize these needs, you need a new vendor.

 

Reasons you will love about Cargo Insurance

So,  if you can’t afford to lose it, insure it. Cargo insurance reduces exposure to cargo loss. |Business photo created by rawpixel.com – www.freepik.com

4. Contractual Requirement

Your sales contract may obligate you to provide ocean cargo insurance to protect the buyer’s interest ( especially when selling goods CIP or CIF). Failure to do so cannot only subject you to financial loss if there is loss or damage to the cargo, but non-compliance with the terms of your contract with the buyer can lead to loss of sales and legal issues. 

Moreover, you must have control of the cargo insurance you are hiring. Not all insurers are created equal and not all the policies have the same coverage and can be more price-driven.

5. With Cargo insurance you will have someone else looking at your shipment.

Cargo insurance policies have conditions of insurance. Many of these conditions have the aim to ensure shipment risk is mitigated as much as possible.  A good cargo insurance vendor just doesn’t arrange the insurance, we want to hear about their commodity, the mode of transport, and how it’s packaged. In doing so we are checking out for your risk exposure. Although cargo insurance is not a true form of quality control, having one more layer of process looking for specific things doesn’t hurt.     

6. Cargo damage is too common, so you should notice that your cargo is under risk 

The most common damages are theft, storms, crushed containers, ships sinking, losing a container at sea, etc.This list can continue, with many more possible reasons. All these reasons can be considered a good one to get cargo insurance. 

Every day, a lot of shippers suffer from these events, and many of them regret their decision not to get insured.  If you want more information about this you can read this post. 

7. Cargo Insurance is not expensive

When compared to the overall costs in getting your commodity from point of origin to point to destination, cargo insurance is such a small fraction of the investment, it almost becomes invisible. If you would like to know an accurate cost of your next cargo insurance you can contact us for a quote.

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2021: A year of challenges for the supply chain

The COVID-19 pandemic has brought about unprecedented supply chain challenges, it continues disrupting world economies, even in countries that have the pandemic under control and business has to deal with a “new normal”.

Even though the pressure to get the economy back on track, ongoing uncertainties and supply chain challenges are still present. Systemic supply chain weaknesses were revealed, and while all suffered, companies that had not kept up with critical supply chain trends were the most affected. Looking ahead, as companies strive to reestablish supply lines and restart manufacturing, they should consider these supply chain challenges for 2021: 

Higher Demand Within E-Commerce

Demand will continue growing as more clients move towards e-commerce enabled platforms. The big challenge for shipping managers and forecasters is to improve organization throughout the chain network. Better forecasted sales, balancing the flow of supply and demand, improving product availability and shipping lines, and fewer delays and issues along the shipment chain. 

What’s Going Wrong to Decrease Efficiency?

The most successful shippers and freight forwarders usually have an efficient process that helps to reduce time, faster order issues, and avoid payment delays. It’s not just systems and technology that are important to supply chain efficiency, people are as well. Competent supply chain professionals are key to helping leverage its supply chain.

Prompt Replies to Customer Complaints

Another area of concern for shippers is the constant need to improve the relation with the customers. If achieved through improved communication, better freight management, responding to customer complaints effectively is a must. A loyal customer, along with a flowing stream of new customers, will ensure the company stays vital and beyond, s  this is a big supply chain challenge for 2021. 

Communication Failures Amount to Big Delays

One of the most important difficulties to improve for many supply chains is low communication. When information cannot be shared or processed quickly and accurately, things suddenly come to a standstill. As a result, delays are exacerbated and result in damage to the customer experience. Unsuitably communication failures can go unnoticed until the customer reports an issue. 

Single-source Amplified Supply Chain Risk

Many companies have centralized on single-sourcing strategies, possibly because this was perceived to be the lowest-cost way. Unfortunately, this also means companies are vulnerable if suppliers face deficit or production interruptions. In this order of ideas a single sourcing is risky and a guaranteed way to lose sales when disruption occurs. Instead, companies should focus on a risk mitigation approach.

 

 

2021: A year of challenges for the supply chain

It’s not just systems and technology that are important to supply chain efficiency, people are as well

People photo created by pressfoto – www.freepik.com

 

Slowed Digital Transformation

Another supply chain challenge for 2021. Access to data is important for effective decision-making. Unfortunately, many organizations have a mix of manual and digital systems that effectively trap information, but the decision-making is hampered by an incomplete picture. It’s very important that companies create ways to access supply chain data through the introduction of technologies that allow data to flow freely. Additionally, companies need systems that allow them to monitor, manage and observe the impacts of decisions.

Eliminate Traditional Inventory Strategies

Conventional inventory systems, don’t take into consideration unexpected events, nor is it agile and is often completely different from reality. An outside-in strategy to supply chain challenges that look at using streaming data to drive insights, determine market changes, and establish demand. Additionally, the next generation of advanced inventory optimization techniques can help manage unpredictability better than traditional inventory solutions. 

Lack of Update Data

It’s a common theme, the management often doesn’t have sufficient information at hand to make informed decisions. Additionally, supply chain complexity makes it difficult to evaluate various alternatives and scenarios to arrive at the best decision.

The answer to this dilemma lies in the use of modern optimization techniques, this form of supply chain modeling allows you to use the large volumes of structured and unstructured data available to the company to evaluate different scenarios, and determine the best way to overcome supply chain challenges and achieve supply chain aims.

Drive Flexibility

A flexible supply chain can adapt to new market needs and conditions quickly. It requires high levels of visibility and integration, but true flexibility also necessitates the capability to plan and re-plan in real-time. As the pandemic goes on and the global economy reopens, you can expect more types of very specific spikes in demand for products.

The top supply chain challenge for 2021

Keeping operations on track in spite of the coronavirus and all of its attendant disruptions. These disruptions have taken all shapes and sizes, from the obvious supply shortage that arose from an overreliance on single-sourcing in impacted areas. In this order of ideas, there is any number of smaller challenges that will define your success or failure of your business. Perhaps suddenly, these don’t look that different from the top challenges of years past—it’s just that the pandemic has shed new light on them and, in many cases, made them more on the ball.  

Historical inventory management strategies have been found wanting. And the lack of digitalization has meant that crucial information is hidden away in silos and obscure legacy systems. It’s absolutely crucial organizations map out their supply chains, in detail, to identify vulnerabilities and weaknesses. This data will allow fast and decisive action. 

Now you know the supply chain challenges for 2021, a reliable logistics partner, can help your network be more effective. In CARGO CARE SERVICES we will keep you informed about the situations which affect our sector and you can count on us to improve your supply chain.

Contact us today!

 

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Should I consider a 3PL for my business?

 

If you’re looking to save time and money on your supply chain, you’ll want to partner up with a business that focuses on doing specific processes really well.

A good 3PL can help you scale logistics up and down as needed, without requiring a significant investment in assets like vehicles or property. You are able to ship more orders during your busy season, and then go down your warehouse and your labor back down when you don’t need as much.

What does Third-party logistics do?

Third-party logistics (3PL) are companies that provide outsourced logistics to other companies, giving businesses the ability to focus on core functions. The 3PL service may be a single provider, such as transportation or warehouse storage, packaging, and order fulfillment. 3PLs can identify and fill the holes in your supply chain

These business partnerships allow shippers to more easily expand operations while increasing efficiency and reducing costs. 3PL providers can offer a variety of advantages as follows:

Do not waste time and money 

This is a major benefit that 3PL providers can offer to organizations. You don’t have to spend money on building warehousing or hiring additional employees, companies can reduce their costs drastically. 3PL companies not only save companies time and money in the short and long term.

Possibility to scale your business with flexible solutions 

3PL companies have the ability to scale space, labor, and transportation based on the variation of your inventory. This is the case when you’re dealing with season inventory or a new product launch. 

3PLs can help provide adequate space and resources between your busy and slow times, giving you maximum amounts of flexibility during any time of the year. So, when sales are down, there are no redundant investments and unutilized resources, you can customize your own solution depending on your needs. 

 

 

 Should I consider a 3PL for my business?

3PL companies have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. |Background photo created by pressfoto – www.freepik.com

 

Putting cost efficiency at the center of your business

3PL companies specialize in logistics and have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. So you can take advantage of this and minimize overhead costs. 

Shippers can avoid the expense of paying for unneeded warehouse space, infrastructure, equipment, utilities, and labor by only paying for what they use. This reduces risks and keeps costs proportional to needs ensures consistent margins and enables better growth planning.

Focus on your know-how  

3PLs will give your organization plenty of rope to focus on its core competencies instead of getting involved in non-core but critical functions. Your business can have the benefits of logistical expertise without investing in internal resources

Access to new markets 

3PL enables business growth by giving companies access to markets where they don’t have an established presence because they can have access to distribution centers and warehouses in various regions. Being able to manage inventory in a new market without having to spend money on warehousing, equipment, and labor can save money while giving them the opportunity to strategically position themselves to better serve their customers

An experienced 3PL provider: the best solution for your logistics needs

Companies actually become more efficient and save money in their supply chains by partnering with an experienced 3PL provider with an extensive network and warehouse locations. In this order of ideas, it’s really important to choose carefully your 3PL partner because it could be your company image with the customer.

If you’re looking for an experienced, dependable 3PL provider to handle all of your supply chain needs, in CARGO CARE SERVICES we can help you with your Warehousing and Packaging needs over all the US, we have 12 years of experience and a professional team who can assist you with your projects! 

Contact us today for more information!

 

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Major perils during freight transportation

 

Whether you are an importer, exporter, or freight forwarder this is a very important article that will show you how to prevent risks during freight transportation and avoid inconveniences with your CARGO INSURANCE policy and claims when they show up. On Cargo Insurance whether for domestic ground or international shipments there are some Major Perils during freight transportation that you should have into consideration.

 

Collision or Tipping of the Conveyance  

 

For truck transportation, your first tool is the Federal Motor Carrier Safety Administration’s (FMCSA) tool for shippers and 3PL’s (third party logistics) called Snapshot.  Snapshot is a free online tool that allows shippers to look up a carrier using the carrier’s USDOT number, MC/MX Number, or name to get a peek at the carrier’s safety record. The safety rating in this tool is a ‘satisfactory’ or ‘unsatisfactory’ with no letter or number grade. 

 

Even if a carrier has a ‘satisfactory’ rating, look at their numbers and compare them with other carriers of similar size and service. Pay attention to crashes, tows, and out of service numbers. If these numbers are considerably higher than other carriers of similar size and service, it should give you a red alert. Higher numbers could indicate careless operational practices.

So on all those news, we saw on a daily basis of cargo spilled onto highways that came to our mind immediately when we talked about collisions and related topics while you may think this threat is out of your control, it isn’t totally.

 

 

MAJOR PERILS DURING FREIGHT TRANSPORTATION

Even if a carrier has a ‘satisfactory’ rating, look at their numbers and compare them with other carriers of similar size and service. Pay attention to crashes, tows, and out of service numbers. |Road photo created by welcomia – www.freepik.com

Cargo Handling and Securement

This category refers to the way Cargo is handled, loaded and packed by the shipper, freight forwarder or whoever handled their own freight.

Keep in mind empty spaces are always bad. Whether within your palletized freight or around it, empty space leaves room for damage. Carton crush itself may not damage the freight, but it could start the pallet to fall apart and compromise the condition of the cargo.

 

Compound this by the pallet possibly getting stacked on by another pallet and both pallets may tip inside the conveyance or during handling. The best practice is to always build crates and care about the safety and protection of the freight. Since crating isn’t always practical and is more expensive than others, ensuring each carton is uniform in size, full, and laid out on the pallet besides shrink wrap and pallet banding is always a good option too. It depends of course on various factors such as the commodity, value, dimensions, weight, etc to establish the proper packaging.

 

The next empty space to be aware of and prevent is around the pallet. Typically the inner dimensions of a standard van trailer or container are larger than the dimensions of pallets side by side in the trailer and there is often space at the end of the trailer for movement. Empty space allows for pallets, crates or boxes to move and slide when in transport. 

The best answer is cardboard or inflatable dunnage placed in empty spaces throughout the trailer. The dunnage isn’t that expensive and does a great job of protecting your freight. In addition, if the trailers you load typically have space at the end of the trailer, ask your carriers to use block and brace materials to lock and secure at the end of the truck. 

 

LTL transportation presents special challenges for all parties involved attempting to reduce freight damages. LTL carriers take control of the freight at their trailer door reducing the amount of control shippers have over mitigating freight damages. Having a good, hard to damage, packaging on your freight becomes more important than ever. As a shipper you can also have the LTL company designate your freight ‘do not stack’ or ´fragile´ or ´handle with care´. This will help prevent damages in transit as well as heavy items being stacked on top of your pallet. 

 

Another weapon against damaged freight (and ‘lost’ freight) is collecting and using data on all losses for LTL freight. Most LTL companies don’t advertise their loss records and will give a vague answer if asked directly unless they are a shining example of freight protection for the industry. It’s up to you. 

 

Lastly, Truckload damage rates are less than LTL due to the cargo not being handled at cross docking locations and the carrier’s terminals along with the shipper get to load the freight. Less handling is almost always better and since you loaded it you can use the dunnage mentioned before. Additionally, truckload contract carriers often carry $100,000USD of cargo coverage while LTL often only offers cargo insurance by the pound based on the freight class which may not fully cover your freight value.

Major perlis during freight transportation

The highest cargo theft rates in the country are in California, Texas, Georgia, and New Jersey.|Background vector created by upklyak – www.freepik.com

Cargo Theft

 

Theft happens everywhere. Do not think we are safer in the USA than other places. On the Ranking list the United States is in the top five for cargo theft globally in the company of Mexico, Brazil, South Africa, and Russia. Many shippers don’t report thefts in fear of their insurer raising insurance premiums. The FBI estimates the dollar amount to be between $15 billion and $30 billion every year. The following are a few things to keep in mind.   

It is a misconception that only high-value freight gets stolen. As a matter of fact, due to sheer volume of shipments the commodity ‘food and drinks’ tops the list of stolen items. No one is immune to cargo theft. While it is true organized targeted thefts often focus on high value easily sold items, there are plenty of thefts that are crimes of opportunity.

 

Items such as laptops, cell phones, LCD TV’s, and other electronics and desirable theft commodities should be packaged in ‘blank’ packaging and the bill of lading should be as vague as possible. Bill of ladings and pallet labels stuck to the outside of pallets do not have to be specific for domestic transport. Cell phones and laptops can be stated as ‘miscellaneous electronics’ on the paperwork. Code numbers can be used for outer pallet labels with more specific manifests reserved for the inside of the pallet. If a thief of opportunity is poking around through the back of a trailer looking to steal several cartons, they may not wish to waste time and labor accessing cartons in a well wrapped and banded pallet. Although they will be sure to grab a carton that says ‘Apple or Samsung’ on it. 

 

Cargo thefts increase by up to 40% over holiday weekends. While we take some well-deserved time off and vacations criminals are looking for new opportunities.  The criminals know there will be as much, or more, unattended freight over extra-long weekends than there will at any time of year. If you have a choice, adjust your shipping schedule to have your freight delivering before the holiday or pick up after the holiday. 

For truckload long haul make sure your driver has enough fuel and driving hours left to get several hours away from pick up. Also ask your carrier if the trailer your freight will ride in will be parked in a secured terminal for any layovers. The best trailer lock is of no value if the doors are removed from the trailer or a thief has plenty of time and a few tools in a remote area.

 

Deserted warehouses will also be the prime targets. Double-checking proper function of all security cameras, door and window locks, and checking good working order of all barrier protection like fences and gate locks are a must. If criminals do get in, there is no need to help them once they are. It is wise to remove the keys from all material moving machinery such as forklifts and yard dogs. Padlock all trailers in the yard even if they are empty and lock as many interior thru doors as possible. One tool I used to employ when there was room was backing the trailers rear end to rear end making access to the trailer’s doors more difficult. I also tried having the drivers back up against the building wall but that didn’t go very well if the driver was inexperienced.

 

Bonus Track: The highest cargo theft rates in the country are in California, Texas, Georgia, and New Jersey.

 

This article is in no way a comprehensive guide to all methods to prevent freight losses. It can however be an indicator there are steps you can take for little or no cost to help reduce losses. CARGO CARE SERVICES can help you to reduce these major perlis during freight transportation with our insurance policies and assist with all the process in case of claims, we have 12 years of experience in the cargo insurance industry. 

Contact us today to advise you to reduce perils during freight transportation!

Thanks to our Friend Tom O’Malley for all the help on this article.
Freight Loss Data supplied by CargoNet and Freightwatch International.

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How to run your warehouse efficiently?

Written by: CubiQ

 

The optimization of space and processes in a warehouse is a priority aspect, which directly influences operators’ productivity, operating costs, and the time required for the execution of tasks such as the reception and dispatch of goods.

 

For this reason, new technologies that emerge as solutions for the logistics industry come to support this process to increase its efficiency and productivity. The company that implements these technologies obtains better results and can assume a greater demand for orders without affecting delivery times and customer satisfaction.

 

An optimized warehouse is the first of the necessary steps to guarantee that the supply chain system works efficiently. It is also essential to consider that companies lose large amounts of money every year due to a lack of stock, returns, and human errors.

 

According to the magazine “Logística Supply Chain” these are some of the main technological trends for the optimization of storage in warehouses:

1. WMS (Warehouse Management System)

This technology is beneficial for the management of warehouses. It allows precise and real-time control of the operations, allowing the logistic chain to have more accurate traceability and be more agile and efficient.

It is worth noting that this tool can identify the goods and show their identification and manage the resources when they are being moved. Therefore, it allows to regulate the labor force, eliminate empty movements, and reduce operation times.

2.  SGA Systems

It is a tool that allows you to have the inventory updated and to know the quantity and exact location of each of the products stored in the warehouse in real-time. This allows for greater traceability of the existing inventory and contributes to timely decision making.

 

Technology in warehouses

An optimized warehouse is the first of the necessary steps to guarantee that the supply chain system works efficiently. Box photo created by vanitjan – www.freepik.com

 

3. Voice Picking

This feature allows the operator to receive instructions through a headset and a microphone, allowing them to have both hands available to complete other tasks, improving order preparation times in the warehouses.

Additionally, from CubiQ we highlight the entry of two new technologies that revolutionize warehouse management when implemented.

4.Drones

These devices are used in storage centers for stock control since it allows the reduction and optimization of the costs involved in performing a physical stock control

The use of drones achieves a reduction in operating costs, increases the activity’s productivity, and reduces the time needed for its completion.

5. Automated measurement and cubing systems

This equipment allows the automation of a process as repetitive as the sizing of goods, allowing companies to optimize operating costs and increase its logistics chain’s productivity.

 

In CubiQ we design technology solutions that go beyond the sizing of goods, achieving a quick transcription of the label’s information using modern technologies such as OCR, contributing to the digitization of information in the warehouses of transport and logistics companies, freight consolidators, and retail operators.

 

warehouse optimization

Photo: Courtesy of CubiQ

 

 

It is worth mentioning that significant benefits have been obtained in the retail companies that have installed CubiQ solutions in their warehouses. Among the benefits that stand out in this industry are:

 

– Optimization of storage space by an additional 25%.

– Reduction of the amount of freight by over 8%

– Reduction of up to 160% in data capture and incorporation into the WMS system times.

 

Additionally, in the cargo consolidation companies that have CubiQ in their warehouses, the processes have been optimized and costs reduced in the following way:

– Reduction of labor costs by more than 150% generating savings of approximately  USD 800.000.

– Increase in operator productivity by up to 200%.

 

Now, don’t forget! The automation of processes logistics chain’s optimization, especially in warehouses, is a must-do project because if the warehouse storage is optimal, your company can reduce unproductive time, increase operators’ productivity, reduce labor costs, and meet increasing product demands.

Now, what do you think about the automation of the logistics chain?

 

Written by: CubiQ

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Benefits of a Temperature Controlled Warehouse

Are you struggling to ship your perishable goods with complete efficiency?

If you or your customers trade products that are temperature sensitive, the assistance of a specialized company with a temperature-controlled warehouse is essential, either freezer or cooler, their importance is stronger than ever.

Without the services of such warehouses, it becomes very difficult to ship goods from one site to another. Temperature-sensitive products are mostly perishable and require a suitable environment. This may mean investing in short and long-term temperature-controlled warehouse storage, which can help to protect certain items.

What is a temperature controlled warehouse ?

Temperature-controlled warehouses are specialized in maintaining a specific temperature by incorporating a method of cooling or heating. The temperature maintained in these warehouses is approximately to be around 60-75 °F. These temperature-controlled warehouses are used to store products that need refrigeration to conserve the quality and ensure that the shelf life of the product line is maintained and reaches the final customer in perfect conditions.The types of products that require cold storage warehouses are Perishable Food and Beverages, Supplements, Makeup, pharmaceuticals, and others.

Cold Storage

The assistance of a specialized company with a temperature-controlled warehouse is essential |Food vector created by upklyak – www.freepik.com

 

Advantages of a Temperature Controlled Warehouse

We’ve listed some of the main advantages of temperature-controlled storage and how it can benefit your business. These include:

1. Protects goods and increases shelf-life

These warehouses enable the stocking of products even during unfavorable conditions. The services offered by these warehouses ensure that the product quality does not degrade even during harsh conditions.

Moreover, other products that may need higher temperatures for storage can also need the services of temperature-controlled warehouses. The storage cells can also accommodate products that do not need refrigeration also.

2. Experienced professionals and safety

The professionals that operate these temperature-controlled warehouses have years of experience in this field. The environment inside these warehouses is very different, due to the temperature, it is not always safe or ideal to work in. However, special measures are incorporated to ensure optimum safety for the employees and for the products stored.

3. Peace of Mind and Customer Satisfaction

Shippers can now rest assured that the quality of the goods produced is maintained at all times. The final consumers also attain complete satisfaction as quality products are delivered to them.

When your supply chain has temperature-sensitive products must be functional as there is limited time to meet consumer demands. Assistance from temperature-controlled warehouses helps shippers to not worry about damages and spoilage. In this way, the risk of incurring losses is significantly mitigated.

Be sure to seek assistance from an expert third-party temperature-controlled warehouse, that’s why CARGO CARE SERVICES can help you to find overall the USA the best temperature-controlled warehouse for your needs, your products will be kept secure and in optimal condition even in adverse conditions.

Contact us today to check availability for temperature-controlled warehouses!

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What is Cargo Insurance and does my shipment really need it?

In this post, we would like to take a deeper look at Cargo Insurance. Specifically, what is cargo insurance and if you as an importer/exporter or freight forwarder really need it for your shipments. We also highly recommend that you read our post entitled How much Cargo Insurance cost? first to continue with this topic. 

What is Cargo Insurance or Freight Insurance?

In a few words, Cargo insurance is a type of insurance that compensates a buyer or seller of goods against cargo damage or loss of cargo.

 

Despite the industry has been talking about it for years, there is still a feeling that insurance is unnecessary. Because it is an intangible benefit, one that can only be tested under adverse circumstances. 

 

As we mention in another post legally, all carriers must carry a minimum amount of insurance, known as carrier liability. But as we explain it provides very limited coverage and importers/exporters can request cargo insurance to protect their goods from loss, damage, or theft while in transit.

What could happen to my cargo?

As you may know, cargo is packed inside a CTU(Cargo Transport Unit) that goes through various motions while it is in transit ( road, rail or sea), we are going to explain these movements first to understand. 

 

Movement by Road or Rail: There are several forces acting on the cargo during transport caused by the movement of the truck or the rail wagon, the gradient of the road, in the second case vibration of the rails, the speed of movement or unexpected stops. These forces can cause the cargo to tip, slide, and move may cause damages, sliding and wandering of cargo which could seriously damage the merchandise. 

You have to be assured that the cargo must be secured sufficiently to withstand all these forces en route.

 

Movement by Air: This is less risky because cargo does not suffer a lot of movement only in normal conditions when the plane lands, takes off and sometimes when there is turbulence, and because it spends less time to arrive at its final destination. But These forces can cause the cargo to slide, and move. 

 

Movement by Sea: This is the worst movement a shipment may suffer because it can be moved in different ways. Each of these movements causes a different type of stress on the shipment and there is a high chance of it damaging the container and even coming out of the container.

In terms of rolling, ships have been recorded with rolling movements of up to 40 degrees on the rough seas and, imagine your cargo is moving inside the container with this!  

When you imagine these movements, you can imagine the stresses that the cargo inside the container suffers especially if it is not packed and secured properly. 

 

Cargo Insurance
Your cargo may suffer a lot of movements while it is in transit| Photo taken from Freepik

So, do I really need cargo insurance ?

You may wonder why we are talking about cargo damage instead of whether you really need cargo insurance? Because of claim statistics, cargo damage is the leading cause of cargo claims.

 

So, did you ever think about all of the above mentioned facts? Maybe these facts may not be at the top of your priorities because more often than not, your focus is on the business, the focus is on getting the goods to the buyer in time. 

The fact is that ANYTHING can happen to your cargo while it is in transit in short or long distances, including being damaged or stolen whether you like it or not. 

 

On the other hand, the buyer and seller have to have a correct interpretation of the Incoterms chosen could lull you into thinking that the other person has insured the goods or it is the other person’s responsibility to insure the goods, so as a freight forwarder you have to advise your customer to have all this clear. 

 

If your cargo is not covered sufficiently by insurance and cargo damage or total loss happens due to any of the above movements, you as the buyer or seller will perceive losses. How would that affect your bottom line?

 

So,the answer to our question is YES, CERTAINLY YOU REALLY NEED CARGO INSURANCE. In your own interest and the interest of your business, you need to ensure that your cargo is sufficiently covered by cargo insurance.

The business of packing and securing the goods is left to someone else (3pl) to handle, that’s why CARGO CARE SERVICES is here to help. We can assist you with both matters; Cargo Insurance with ALL RISK coverage, door to door, nil deductible and a Properly Packing and Crating of your goods before shipping it.  

 

Also if you want help to know which cargo insurance is for you and fully understand your actual policy and make sure you are protected. 

So do not hesitate and contact us today ! 

 
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