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Author: admin
HomeArticles Posted by admin
cpsc e-filling system for compliance certificates
Compliance & Regulations
January 1, 2025 By admin

CPSC to Roll Out Mandatory e-filing System for Compliance Certificates by 2025

The U.S. Consumer Product Safety Commission (CPSC) has announced the introduction of a new Electronic Filing (eFiling) system to enhance consumer safety across the United States. This new certification system is a step from paper to pixel, making it easier for the importers in numerous ways.

Is Your Business Ready For The eFiling System?

Washington, D.C. has made a significant move in the trading world. For consumer safety, CPSC has announced that US importers have to electronically submit crucial details at the time of import instead of current paper-based certifications. The initiative aims to modernize safety checks and reduce risks associated with unsafe imports. 

This move aims to ensure a fast process with minimum risks of unsafe products in the market. Businesses must adapt to this change to remain compliant. So, if you’re prepared to meet these requirements, your business will be set for success.

The Final Rule

December 18, 2024, marks the day when the final rule was approved which includes updates based on the feedback given: 

  • Extended preparation time for businesses. 
  • Elimination of duplicative testing requirements and automation bulk certificate attestations.
  • Clarified definitions for terms like “finished product” and “importer.” 
  • Exemptions for certain product categories outside CPSC jurisdiction. 
  • Alignment of certification processes with modern trade practices. 

Details Required For eFiling

The new system will have certain requirements from importers end. This includes submission of data or comprehensive information about every product via the e-filing system. The details of products include:

  • Product identification (e.g., GTIN). 
  • Safety rules applicable to the product. 
  • Date and location of manufacturing. 
  • Date and location of compliance testing. 
  • Contact details of the testing entity. 
  • Confirmation of an existing compliance certificate.

Which Products are Included? Who Can Participate?

The initiatives that are being aimed to minimize the risks that come along this process as this system will initially cover up to 300 products based on Harmonized Tariff Schedule (HTS) codes. The categories coming under this umbrella are:

  • Toys 
  • Rugs and mattresses 
  • Baby carriages and cribs 
  • Children’s furniture 
  • Bicycle helmets 
  • School supplies 

These products come under the existing CPSC standards, such as the Children’s Product Certificate (CPC) and General Certificate of Conformity (GCC). There is a chance that the new system might replace these paper-based certifications.

Implementation And Potential Outcome

Alex Hoehn-Saric, the chair of CPSC considers the eFiling system an important step ensuring imported products meet safety standards. According to him,

“This rule strengthens our ability to prevent unsafe goods from reaching consumers’ homes while rewarding compliant businesses with faster clearance,”

CPSC has invited up to 2,000 additional importers to participate in the voluntary testing phase. This system is a game changer yet flexible as an extended implementation period is being given to businesses to adjust beforehand.18 months after final rule approval, whereas 24 months are given to Foreign Trade Zones. Not only this but warehouses will be given a longer timeline to adjust accordingly.

Preparation For Importers

Importers can prepare themselves for the eFiling system by collecting the required data in advance and participating in CPSC’s voluntary phase to refine processes. Moreover, they can train their team for any unpredictable future events and collaborate with various logistics partners to get a better perspective of the whole scenario. Working with trusted logistics providers like TEU Global can make complex transitions like these easier and smoother for your business.

The Next Chapter in Global Trade

The e-filing system is expected to revolutionize the import process, making it stronger and faster. It also strengthens the CPSC’s ability to identify unsafe products, ensuring greater consumer protection. Importers are expected to act promptly before the system is implemented by CPSC or hire a company that handles these operations by teams of experts for less risk of loss like TEU Global.

Talk to one of the experts in the team to ensure a smooth Global journey.

Contact Us
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high tariffs for US importers
Trade & Tariffs
January 1, 2025 By admin

How U.S. Importers Can Prepare For Potential Higher Tariffs in 2025?

Businesses should prepare as higher tariffs are coming!

2024 was unexpected all around the world, and the coming year seems to be way more evolving. The global supply chain seems to have hit a drastic change in the United States.

Not only this the political and economic shift has affected the whole trading industry. Higher tariffs on imports from key trading partners are bracing global trade for the impact.

Rising costs, disrupted supply chains, and changes in freight costs are some of the changes that might occur. But what exactly are tariffs, and how can they affect the supply chain? 

Let’s discuss these drastic changes coming your way if you’re in this market.

What Are Tariffs? How Do They Shape Global Trade?

Tariffs are indirect taxes also known as custom duties. A tariff is a tax placed on goods when they cross national borders. There are two types of tariffs: import tariffs are the taxes on goods that a country imports and export tariffs are those taxes on goods that a country exports.

Tariffs are imposed either for protection or revenue purposes. They have been used for centuries; in 1789, the first tariff was passed.

These taxes are:

  • Calculated based on the tariff classification or commodity code under the HS.
  • Harmonized System (HS) is a 10-digit code that determines the duty rate

The Importance of Tariffs? Why They Matter

Tariffs are a crucial key in the world of global trade. In the United States, the Harmonized Tariff Schedule sets over 17,000 tariff codes, each with specific duty rates.

Tariffs increase the price of imported goods, making domestic goods cheaper. The duties are applied by calculating the percentage of the declared value of the goods. Governments impose tariffs to raise revenue and protect domestic industries.

Governments can use tariffs to benefit particular industries, they are also used as an extension of foreign policy to exert economic leverage

A Look Back at the History of Tariff Policies

Tariff policies have always influenced U.S. trade relationships. Among the first acts signed into law by the first Congress was The Tariff Act of 1789. These tariff were abandoned in the mid-20th Century

The 2019 Tariff announcement proposed tariff ranging from 5% to 25% on Mexican goods, where as in 2020, The United States-Mexico-Canada Agreement (USMCA) announced no tariff on goods between these three countries.

Warnings Given by Economists to U.S. Government

Economists have warned that the rise in tariff policies could push duty rates to levels not seen since the 1930s, stoking inflation, disrupting U.S.-China trade, and forcing businesses to rethink global supply chains. The tariffs risk increasing inflation and can also lead to a slowdown in global economic growth. Companies are hesitating to expand due to the unpredictable logistics environment. There is a risk that the higher costs of imported goods might affect businesses on every level, so keeping this in mind is crucial.

Rising Freight Rates: How Tariffs Influence Supply Chain Expenses

There was a potential impact of higher tariffs on the ocean freight rates for Shanghai to LA and Shanghai to NY over the timeline. Freight rates have always been influenced by several factors which include:

  • Global economic trends
  • Demand-supply imbalances
  • Shifts in trade routes

Not only this, but between December 2023 and July 2024, rates of container shipping between Asia and North America doubled, which resulted in a 1%-2.5% cost increase in imports. Understanding these dynamics is very important for businesses that aim to minimize costs.

Quick Tips for U.S. Importers to Navigate Higher Tariffs

Here are some quick short tips for businesses looking for immediate guidance:

  • Build contingency plans.
  • Stay informed about trade agreements and tariff changes.
  • Work closely with trusted logistics providers.
  • Evaluate supply chain costs closely.
  • Reduce reliance on one region, instead chose partners from tariff-free countries.
  • Use data analytics to forecast risks, costs, and adaptable strategies.
  • Utilize Trade programs for cost reductions.

What Strategies Can Be Used to Mitigate Tariff Risks?

The challenges that US Importers have to face this coming time are numerous. To face them proactively you can use these strategies:

  1. The first strategy is to diversify suppliers and change the sourcing location. Businesses can do Onshoring, which means moving operations closer to home, it can reduce tariff hikes. Partnering with suppliers of countries that are tariff-friendly can help businesses mitigate supply chain disruptions with less cost.
  2. The second strategy is to explore Tariff Mitigation Programs that will decrease the financial impact of tariffs, such as Free Trade Agreements (FTAs) that lower or eliminate tariffs on certain imports, Duty Drawback Programs that help to recover duties paid on imported goods, or by adjusting products classification. 
  3. One of the most important and effective strategies is building strong partnerships with suppliers as it helps in cost-saving opportunities, gives flexibility in contracts to adapt new rates, and focuses on suppliers who maintain one-time delivery despite higher rates. Partnering with reliable logistics providers such as TEU Global can make a significant difference, whether it’s the reduction of supply chain risks or the enhancement of agility.
  4. You can invest in Data-Driven decisions as it is important when it comes to sudden policy changes. Staying updated about tariff changes, using various tools to identify perfect cost-effective solutions, and planning proactively can help you make informed decisions without things getting out of your hands.

Be Proactive: Take Action as Soon as Possible

Taking action earlier will have many advantages. Higher tariffs need to be dealt with strategies discussed above. These strategies will help the importers protect their supply chain, control the increasing costs, and make operational resilience strong enough in this disrupted market.

For expert guidance, partnering with TEU Global can ensure that all your logistics operations remain competitive.

Contact Us

The Next Step for Importers Against Tariff-Driven Disruptions

Every step in the Global trade system is unpredictable, but you should always be prepared to face any changes that might occur during your transit. Businesses all around the world can survive in this challenging environment by working on multiple strategies, building strong partnerships, and investing in analytics.

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Freight Forwarding vs Logistics
Logistics
December 19, 2024 By admin

Freight Forwarding vs Logistics: What’s the Difference?

Are you confused about the difference between freight forwarding and logistics? Or wondering when you need one service over the other? You’re in the right place! In this article, we’ll break down these two terms and explore their key differences, along with the pros and cons of each.

The shipping industry is essential to global trade, and as demand for transportation continues to grow, understanding logistics and freight forwarding is more important than ever. Let’s dive in and make these concepts easy to understand.

What is Logistics?

Logistics refers to the movement of goods from one place to another. It is a broad term that encompasses the entire process of managing and transporting goods on a global scale.

One specific type of logistics service is Third-Party Logistics (3PL), which involves outsourcing logistics tasks to external providers. These companies support businesses by offering services like storage, supply chain management, packing, shipping, and order fulfillment.

3PL providers help organizations transport inventories efficiently. They also play a crucial role in military operations, transporting equipment and supplies on the battlefield.

What is Freight Forwarding?

Freight forwarding is the process of transporting goods by air, sea, rail, or road. It involves companies that manage the logistics of sending goods from one location to another using various carriers.

Freight forwarding companies coordinate shipments across different transportation modes, ensuring efficient delivery. These companies handle the complexities of international shipping, making sure that goods are transported on time and in compliance with regulations.

The role of freight forwarders has evolved over time, as they now work closely with logistics providers to ensure cost-effective and reliable solutions. By partnering with national and international companies, freight forwarders can offer better pricing and more efficient shipping options.

Key Differences Between Freight Forwarding and Logistics

Key Differences Between Freight Forwarding and Logistics

While logistics covers the entire supply chain, freight forwarding focuses on the transport coordination. To understand how shipping speed plays a crucial role in your business, take a look at our article on how fast is freight shipping?

The main distinction between the two is that logistics covers the entire transportation process, managing all aspects of the movement of goods. This includes planning, storage, inventory management, and shipping. On the other hand, freight forwarding focuses specifically on coordinating the transport of goods from one location to another, working with various carriers to ensure efficient delivery.

Although both are essential parts of the shipping process, their differences are significant. The choice between logistics and freight forwarding often depends on the specific needs of the customer, such as the complexity of the shipment and the type of service required.

To better understand how the difference between logistics and freight forwarding might impact your business, take a look at the following comparison table:

LogisticsFreight Forwarding
Manages entire supply chain.Focuses on arranging transportation.  
Includes warehousing, inventory, and transportation.Acts as a middleman between shipper and carriers.
Owns assets like warehouses and trucks.Does not own transport assets.
Provides end-to-end solutions.Handles customs, documentation, and regulations.
Ensures smooth order fulfillment and delivery.Specializes in international shipments.
Involves inventory control and tracking.Offers flexible routing options.
Optimizes supply chain efficiency.Manages risk and compliance in shipping.

Advantages & Disadvantages of Freight Forwarding and Logistics

Let’s take a closer look at the advantages and disadvantages of both freight forwarding and logistics services to help you understand which one might be more suitable for your business.

1. Logistics: Pros and Cons

Pros:

  • Cost-Effective: Outsourcing to third-party providers (3PL) reduces costs with services like tracking, warehousing, and inventory management.
  • Efficient Management: Handles all aspects of the supply chain, streamlining operations.

Cons:

  • Loss of Control: Outsourcing logistics may lead to less control over the process.
  • Not Ideal for High-Value Goods: Logistics services may not be best for delicate or high-value items.
  • Limited Support: Some 3PLs may struggle to offer dedicated support due to high order volumes.

2. Freight Forwarding: Pros and Cons

Pros:

  • Extensive Network: Leverages a wide logistics network to manage customs, documents, and intermodal shipping.
  • High Success Rates: Ensures accurate labeling and documentation for reliable deliveries.

Cons:

  • Lack of Regulation: Some companies may not be regulated in certain regions, affecting service consistency.
  • Limited Scope: Focuses mainly on transportation coordination; may require additional logistics support.
  • Higher Costs: Can be expensive, with rates increasing for certain services.

Key Responsibilities in Logistics & Freight

Key Responsibilities in Logistics & Freight

Logistics and freight management involve different aspects of the shipping and supply chain process, each focusing on specific tasks to ensure smooth and efficient operations from order placement to delivery. Here’s an overview of the key responsibilities involved in both logistics and freight management.

1. Logistics Management

  1. Oversees the entire supply chain to ensure smooth movement and storage of goods.
  2. Manages order fulfillment to meet customer needs in terms of quantity, quality, and location.
  3. Ensures proper storage of products in warehouses according to specific requirements.
  4. Plans and executes efficient delivery of goods, including packaging for different materials.
  5. Manages transportation to ensure safe handling of delicate and fragile items.

2. Freight Management

  1. Negotiates rates, terms, and conditions to secure deals that meet company needs.
  2. Handles required documentation to avoid complications during transportation.
  3. Ensures timely collection and delivery of goods.
  4. Builds strong relationships with customs teams to ensure compliance.
  5. Optimizes use of transport facilities and maintains connectivity for smooth shipping operations.

Get Expert Freight Forwarding and Logistics Solutions with TEU Global

Ready to streamline your shipping process? Whether you’re looking for efficient freight forwarding or comprehensive logistics management, TEU Global has the expertise to help. Contact us today to learn how we can optimize your supply chain and ensure timely, cost-effective deliveries worldwide.

Conclusion

Both logistics and freight forwarding have their unique roles in shipping. To protect your goods during transportation, make sure to check out how shipping insurance shields your goods, which explains the importance of insurance in safeguarding shipments.

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How Freight Shipping Works
Logistics
December 18, 2024 By admin

How Freight Shipping Works? A Step By Step Guideline

Freight shipping can seem complicated, especially if you’re new to the process. But once you understand the basics, it becomes much easier to manage.

It’s a vital part of global trade, helping businesses move large amounts of goods quickly and affordably. Whether you’re shipping within your country or internationally, knowing how freight works can save you time and money.

In this article, we’ll explain everything from preparing your shipments to ensuring they reach their destination on time. We’ll break down the steps to make the process clear and easy to follow.

What is Freight Shipping?

Freight shipping is the process of moving large quantities of goods from one place to another, either within a country or internationally, using air, land, or sea transport. These goods are called cargo or freight, depending on how they are transported.

The journey of freight often starts with a truck, then may switch to trains, large cargo ships, or even planes to reach its final destination. This flexible approach ensures goods are delivered efficiently across various transport methods.

How Does Freight Shipping Work

How Does Freight Shipping Work

The freight shipping process involves several key steps, which are essential to understand when shipping goods. Here’s a breakdown of the six main steps:

Step 1: Pickup and Transport

The process begins with transferring goods from the shipper’s location to the forwarder’s facility. This is typically done by truck, rail, or a combination of both. If the shipper is responsible for this part, they will arrange for local couriers to handle the export haulage.

Step 2: Customs Clearance

Before goods leave the country, they must be cleared by customs. The necessary documents are sent to customs officials to ensure compliance with regulations. This step is often managed by a service provider with a valid customs brokerage license, ensuring smooth processing and avoiding penalties for incomplete or inaccurate paperwork.

Step 3: Inspection and Loading

Once cleared, goods are inspected and documented. They are then transferred to loading points such as airports, shipping terminals, or train stations. If needed, shipments are consolidated with other cargo, loaded into containers, and prepared for collection by the consignee.

Step 4: Arrival and Inspection at Destination

Upon arrival at the destination, goods undergo another inspection process. They are then transferred to a warehouse or port and prepared for pickup by the shipping company for the next step in the delivery process.

Step 5: Import Customs Procedures

Before the cargo can leave the customs bonded area, it must go through import customs procedures. This step ensures that all the necessary documents are submitted and verified by officials, clearing the goods for delivery.

Step 6: Last-Mile Delivery

The final step is the delivery to the consignee. Often, this involves less-than-truckload (LTL) shipping, where the cargo is transported to the recipient’s specified address. This step ensures that the goods reach their final destination safely and on time.

How To Arrange Freight Shipping

How To Arrange Freight Shipping

Arranging freight shipping depends on the type of service that best fits your shipment needs. Here’s a simple, step-by-step process to guide you:

Step 1: Gather Shipment Details

Start by measuring the weight, dimensions, and quantity of the goods you’re shipping. This information is crucial for getting an accurate shipping quote. Freight is usually classified under the National Motor Freight Classification (NMFC) system, which categorizes goods based on factors like density, cost, and liability. Understanding the right freight shipping solution for your business is key to selecting the right service.

Step 2: Contact a Freight Carrier or 3PL

You can either reach out to a freight carrier directly or use a third-party logistics (3PL) provider. 3PL companies can gather quotes from multiple carriers and offer additional services, such as insurance and customs clearance.

Step 3: Get a Shipping Quote

Provide your shipment details (size, weight, origin, and destination) to receive a quote. The quote will include the shipping costs, potential fuel surcharges, and any additional fees for special handling.

Step 4: Proper Packaging

Packaging is key to ensuring the safety of your goods. This may involve palletizing items, using shrink film, or packing them into crates. Be sure that all shipments are correctly labeled with accurate destination details.

Step 5: Create Documentation

Prepare the Bill of Lading (BOL) and shipping labels. If shipping internationally, you’ll also need to complete customs forms and commercial invoices.

Step 6: Schedule Pickup

Once everything is ready, schedule a pickup with the shipping service provider. They will provide tracking options so you can monitor the shipment’s progress until delivery.

This step-by-step process ensures your shipment is well-prepared and ready for transport, allowing for a smooth and efficient shipping experience.

How To Do Freight Shipping On eBay

This section explains the general process for arranging freight shipping on eBay. Whether you’re a seller handling large or bulky items, it’s important to understand these basic steps:

  1. Select Shipping Options: when listing an item on eBay, sellers must choose the appropriate shipping options. Provide the size and weight of the item to help buyers understand potential shipping costs. You can either use a flat shipping fee or ask buyers to contact you for a customized quote.
  2. Arrange Shipping with Carriers: once the buyer shows interest, arrange shipping either through eBay’s preferred shipping partners or independent freight carriers. eBay partners with trusted carriers to make the process easier for sellers. For sellers looking for a better understanding of timeframes and delivery expectations, be sure to read how fast is freight shipping?
  3. Prepare the Goods for Shipment: ensure the items are safely packed, often involving palletizing or crating. After the buyer completes the purchase, schedule the pickup with the chosen carrier.
  4. Provide Tracking Information: once the carrier picks up the item, provide the buyer with tracking information through eBay. This allows both the seller and the buyer to monitor the shipment’s progress.

How Does Freight Shipping Work On eBay

Freight shipping on eBay is used for large, heavy, or bulky items that can’t be shipped through standard methods. Sellers who offer freight shipping work directly with freight carriers or use eBay’s shipping partners to manage the shipment.

When a buyer requests shipping costs, the seller provides a quote or suggests that the buyer contact the shipping company for a rate. The seller is responsible for arranging the pickup and delivery of the goods, which may involve palletizing or crating items for added protection during transport.

Once the carrier picks up the goods, they are sent to the buyer’s specified address. Buyers can track their shipments through eBay or the carrier’s website. To avoid misunderstandings regarding delivery timelines and additional fees, eBay recommends that both sellers and buyers maintain clear communication throughout the shipping process.

How To Add Freight Shipping On eBay

Freight shipping is an efficient process that involves several key steps. First, the goods are collected and transported from the sender to the shipping hub. They then go to customs for customs clearance before being loaded onto air, sea, or land transport. Once the package reaches its destination there will be one more customs inspection and handling before transfer to the final destination. From beginning to end Freight transport is a coordinated effort between shippers, transportation service providers, and customs authorities to ensure the goods arrive safely and on time.

Simplify Your Freight Shipping with TEU Global

Looking to improve your freight shipping process? TEU Global offers reliable, cost-effective solutions for businesses of all sizes. Contact us today to streamline your logistics and ensure timely deliveries!

Conclusion

Freight shipping is an effective solution for transporting large or bulky items, whether domestically or internationally. Understanding the process, especially on platforms like eBay, helps sellers optimize costs and improve customer satisfaction. By managing and tracking shipping costs, businesses can streamline logistics and stay competitive in a rapidly evolving industry.

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How Shipping Insurance Shields Your Goods
Logistics
December 18, 2024 By admin

How Shipping Insurance Shields Your Goods

Shipping insurance is crucial for businesses and individuals looking to protect their goods during transit. Whether you’re sending a small package or large freight, risks like damage, loss, or theft can occur, especially when shipping over long distances or across international borders. Shipping insurance offers peace of mind by providing financial compensation if something goes wrong, ensuring that your investment is safeguarded.

Freight insurance, a key type of shipping insurance, is particularly important for larger shipments. It covers potential risks during transport, such as accidents, weather-related damage, or theft. With global trade growing, having reliable shipping insurance is essential to protect your goods and avoid costly losses.

What Is Shipping Insurance?

Shipping insurance protects the value of goods during transportation, covering potential risks like loss, theft, or damage. Whether shipping domestically or internationally, it ensures that your products are covered if they don’t arrive in good condition. The cost of shipping insurance is typically a small percentage of the shipment’s declared value.

This service is essential for high-value shipments or those traveling long distances, as the risk of damage or loss increases on complex transport routes. By opting for shipping insurance, businesses and individuals gain peace of mind, knowing they will be compensated if things go wrong. To fully understand how freight costs impact your shipment’s value, it’s important to know how freight shipping costs and pricing are calculated, including how factors like weight, distance, and delivery times can influence the total cost.

What Is Freight Insurance?

Freight insurance is a specialized type of shipping insurance designed for large cargo. It covers goods transported in bulk, on pallets, in containers, or other large-quantity shipments by land, air, or sea. Unlike standard package insurance, freight insurance is tailored to protect businesses dealing with larger shipments.

This insurance provides financial security for companies that frequently transport high-value goods across international borders. If a shipment is damaged, lost, or stolen during transit, freight insurance ensures that businesses are compensated, minimizing potential financial losses. Understanding the suitable freight shipping solutions for your business needs will help you determine how much protection you need. This involves considering factors like your shipment’s nature and destination, which may affect the type of insurance coverage required.

Types of Freight Insurance Based on Needs

Types of Freight Insurance Based on Needs

Freight insurance comes in different types to suit specific shipping needs. Here are the most common options:

1. Cargo Insurance

Cargo insurance is the most widely used type of freight insurance. It protects against physical damage or loss of goods during transit. This type of insurance can be arranged by the seller, buyer, or a third party, and is especially important for international shipments to safeguard goods in transit.

2. Liability Insurance

Liability insurance protects against third-party claims for bodily injury or property damage. This is particularly useful for shippers, logistics companies, and carriers who handle goods for multiple customers. It helps cover the costs if something goes wrong and another party is affected.

3. All-Risk Coverage

All-risk coverage offers the broadest protection, covering a wide range of risks such as theft, damage, or loss. While it provides extensive coverage, it is often more expensive compared to other types of freight insurance. This option is ideal for businesses looking for comprehensive protection against nearly all potential shipping risks.

What is the Freight Insurance Cost?

What is the Freight Insurance Cost

Freight insurance premiums usually range from 0.3% to 0.5% of the total value of the items listed on the commercial invoice. However, several factors influence the exact cost of insurance.

1. Type and Price of Goods

The type and value of the goods being shipped play a key role in determining the premium. More expensive or fragile items often come with higher insurance costs because they carry a greater risk of damage or loss.

2. Mode of Transport

The mode of transport—whether air, sea, road, or rail—can also affect the cost. Some transport methods are considered riskier than others, which can lead to higher premiums. For example, air freight is often more expensive to insure than sea freight.

3. Destination and Route

The destination and transportation route are also important factors. If goods are being shipped to high-risk areas or along longer, more complicated routes, the insurance premium may increase.

4. Level of Coverage

Finally, the level of coverage you choose will impact the cost. All-risk coverage, which provides the most protection, typically results in higher premiums compared to basic coverage options.

By understanding these factors, you can better estimate the cost of freight insurance based on your specific shipping needs.

Reduce Freight Insurance Cost

Shippers can reduce cargo insurance costs by taking steps to minimize risks during transit. Properly packaging and labeling merchandise helps prevent damage, lowering the likelihood of claims. Additionally, providing accurate and complete documentation can avoid disputes and potential penalties, further reducing insurance costs.

Choosing a reliable carrier with a strong safety record can also help lower premiums. Experienced carriers are less likely to face issues during transit, which reduces the risk for insurers. Lastly, selecting the right level of coverage ensures the cargo is protected without paying for unnecessary add-ons, helping keep insurance costs within a reasonable range. Understanding the broader challenges in the logistics industry can also provide insight into managing shipping risks and improving cost efficiency.

What Does Shipping Insurance Cover?

Shipping insurance typically covers the full value of the item if it is lost, stolen, or damaged during transit. This protection applies to various shipping methods, including postal services, courier services, and freight transport. It can include coverage against damage caused by accidents, mishandling, or environmental factors like floods or fires.

However, the exact coverage depends on the carrier’s policy and the terms of the insurance. Some policies may offer additional protection, such as coverage for late deliveries or items that arrive in poor condition. Always check the insurance terms to understand the full extent of coverage for your shipment.

Importance of Shipping Insurance in International Trade

In today’s global market, businesses frequently engage in international trade by shipping goods across borders to meet customer demands. Shipping insurance is crucial in protecting against various risks associated with long-distance shipping, such as theft, damage, or accidents.

For businesses operating internationally, unforeseen events like accidents, misfortunes, or port delays can lead to significant financial losses if products aren’t properly insured. Shipping insurance ensures that even if goods are compromised during transit, businesses can recover their financial investments, minimizing supply chain disruptions and helping them maintain smooth operations. Understanding the global shipping timeframes will help businesses anticipate the challenges of shipping and ensure timely delivery of goods.

Choosing the Right Shipping Insurance Provider

Selecting the right shipping insurance provider is essential for ensuring comprehensive protection for your cargo. When evaluating providers, businesses should consider factors like the provider’s reputation, the range of coverage options, and their experience with specific types of freight or transportation methods.

While comparing insurance rates is important, it’s equally crucial to assess the quality of customer service and the efficiency of the claims process. Carriers that offer customized coverage tailored to your freight needs are often the most reliable choice, helping businesses reduce risks while staying within budget.

Get in touch with TEU Global today to find the best shipping insurance solutions for your business. Our tailored coverage options and expert support ensure that your cargo is always protected, no matter the size or destination.

Conclusion

Shipping insurance is essential for protecting goods from loss, theft, or damage, ensuring peace of mind for businesses. As global trade expands, having the right coverage is crucial to safeguarding investments and reducing risks. Whether shipping domestically or internationally, investing in reliable shipping insurance is a smart business decision.

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How Fast is Freight Shipping
Logistics
October 31, 2024 By admin

How Fast is Freight Shipping? Global Timeframes Explained

Freight shipping has become a common and crucial component of global trade in today’s world. This process has connected businesses across the globe. But, a question that arises commonly among consumers is how long does freight shipping take? Now this process varies according to the mode of transport and the destination. Let’s explore different freight shipping timeframes to make it easier for you to understand what to expect and what to know when it comes to shipping your goods.

The time it takes for a logistics company or organization to ship the goods of their consumers to their final destination is also known as Transit time. From the pickup point to the destination, the amount of time required to move goods can vary widely. So understanding the transit time for freight shipping is important.

How Long does Freight Shipping Take?

Freight shipping, the process of transporting goods in bulk via air, sea, or land, has become a cornerstone of global trade. The timeframes for this process vary depending on the shipping method and the distance between the pickup location and the destination. For instance, domestic shipments via ground freight typically take 1 to 7 days, while international shipments by ocean freight can range from 20 to 45 days. Air freight offers a faster alternative, delivering goods internationally within 1 to 5 days. Additionally, customs clearance procedures can impact the overall shipping time, making it essential to choose the right freight shipping method for your needs.

Common Freight Types And Their Typical Shipping Timeframes

Common Freight Types And Their Typical Shipping Timeframes

1. Air Freight

Air freight is the fastest shipping method which is ideally used for time sensitive or high value goods. This shipping method is best for urgent shipments and high value goods.

Average Timeframe

  • Domestic: 1-2 days
  • International: 1-5 days

2. Ground Freight (Truck/Rail)

This type of shipment process is ideal for shipping goods over land within the same country or region. It includes LTL (Less Than Truckload) and FTL (Full Truckload). This type of shipping is suitable for domestic shipments in which, for large and heavy goods, you have to use FTL, and for smaller goods, you can use LTL.

Average Timeframe

  • Domestic (short distances): 1-3 days
  • Domestic (long distances): 3-7 days

3. Sea Freight (Ocean Freight)

Sea Freight

Sea Freight Shipping, also known as Ocean Freight Shipping, is the most economical method. It is widely used for large and bulky shipments. It is also best used for international trade, non-urgent shipments, or when cost is a priority over speed.

Average Timeframe

  • International (short distances): 10-20 days
  • International (long distances): 20-45 days

4. Rail Freight

Rail freight is mostly used for shipping large quantities of goods over long distances on land. It is a process which is known to be more fuel-efficient and eco-friendly compared to truck shipping. It is best used for bulk goods which are heavy or raw material.

Average Timeframe

  • Domestic (short distances): 2-3 days
  • Domestic (long distances): 7-14 days

5. Intermodal Freight

Intermodal freight shipping is basically a combination of different shipping methods (e.g., truck + rail, truck + ship) to transport goods more efficiently across multiple regions. This mode is ideal for shipping across the borders, when various modes of transport are required.

Average Timeframe

  • Varies depending on the distance and modes used. Generally, it could take 5-30 days based on the complexity of the route.

How Fast is Freight Shipping?

How Fast is Freight Shipping

Have you ever wondered how long does freight shipping takes? Well, shipping timelines can be affected by a number of factors. Including distance mode of transport and the complexity of shipping routes.

  • Deliveries within the same country usually take 1 to 7 days
  • International sea freight can take 20 to 45 days.
  • The time frame is greatly reduced if air freight is used. Delivery can take place in less than a week.

The speed of freight shipping depends on the mode of transport, so understanding how to determine the right freight shipping solution for your business needs is essential.

  • Air freight is considered the fastest option. It delivers goods to international destinations within 1-3 days.
  • Express land shipping can take 1-3 days.
  • Standard land shipping can take 3-7 days.
  • Sea shipping, although cost-effective, fee but it’s the slowest. It often takes several weeks or more than a month for long-distance international shipping.

Shipping Timeframes: US-Based Logistics Companies vs. Other Countries

We have discussed how the method, the distance, and so much more can affect our timeframes for freight shipping. Not only this but the timeframes can also vary based on the country where the logistics company is based. For instance, a US-based logistics company may offer more optimized and faster shipping services compared to an Asian-based logistics company due to advanced infrastructure, a large number of domestic shipping routes, and a wide network of international partners.

1. US-Based Logistics Companies

Logistics companies are very efficient because of the facilities they have. Having well-developed roads, rail tracks, and air networks gives them a plus point for domestic shipments within the US.

  • Most domestic ground freight shipments can reach their destination in 1-5 days
  • Air freight is even faster, often arriving within 1-2 days.
  • Due to the robust infrastructure, international air freight can also be expedited, typically taking 2-5 days, depending on the destination.

For international sea freight, US-based companies often utilize major ports like Los Angeles or New York.

  • Shipping to nearby countries like Canada or Mexico may take 5-10 days
  • Longer international routes to Asia or Europe generally range from 20-40 days depending on customs clearance and distance.

2. Freight Shipping from Other Countries

Logistics firms situated in different countries might have different rates of shipping depending on the present infrastructure and global reach. For example, within Europe, freight shipping within the countries of the European Union is quite efficient and takes about 1-4 days for road shipping. Europe, however, struggles with air and sea shipping, especially from the European region, even though most shipping is done via sea which generally takes a span of 20 to 45 days.

Moving towards Asia, countries like China, Pakistan, or India, the time taken to ship goods internationally using ocean freight is grossly affected by geography. Sea freight to the United States would take an approximate time range of 25-50 days by sea because of the vast distance. While air freight would take 5-7 days as it is way faster. In many developing countries, the state of logistics infrastructure is still poor and not as efficient as in the US.

Thus, when shipping freight through the sea, which incorporates ports, often there are delays caused by less efficient systems. Knowing these differences allows many businesses to make good decisions about selecting a good and reliable partner. Selecting a performance-based partner in the world of logistics can be very helpful.

Final Thoughts

Freight shipment timeframes depend on a mixture of factors including the transport technique, distance, and any customs procedures involved. While air freight is the fastest choice, sea freight offers a more economical solution for larger shipments.

From skyline to shoreline, TEU Global provides a complete guidance regarding these modes. By understanding all these modes of shipment process and the costs for each one, you can plan your logistics more efficiently and ensure your items arrive on time. Whether you want quick delivery or a price-efficient one, there’s a freight choice to suit your business needs.

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How to Calculate Freight Shipping Costs And Pricing
Logistics
October 31, 2024 By admin

How to Calculate Freight Shipping Costs And Pricing

Freight shipping has become a vital element of global trade, enabling the movement of large quantities of goods across the globe. The speed of freight shipping is closely tied to the mode of transport chosen. For instance, air freight offers the fastest delivery times, typically within 1 to 5 days for international shipments, while sea freight, though slower at 20 to 45 days, is more cost-effective for large-volume goods. Land freight, like trucking or rail, balances speed and cost with domestic shipments taking 1 to 7 days, depending on the distance.

Covering these vast distances involves pricing factors that can often be confusing. In this article, you’ll learn how the cost of freight shipping depends on a variety of factors, from the type of transport to shipment size, distance, and additional services. Understanding what influences freight shipping costs, both domestically and internationally, will help you plan more efficiently and avoid unexpected fees. We’ve broken down the key factors affecting costs and included tips to simplify the process.

How Much Does Freight Shipping Cost?

The cost of freight shipping varies. It is based on several factors which include:

  1. Mode of transport: Air Freight is usually costlier because of speed and urgency. Its rates vary from $1.50 to $4.50 per kilogram. These rates depend on the route. Sea Freight would be comparatively cheaper for the consignments moving in a large volume. In general, FCL will range somewhere between $500 to 3000 in US dollars, while for LCL it will be less. Land rates of Truck / Rail will depend upon mileage and can be quoted anywhere between $0.50 to $2.50 per mile.
  2. Shipment Size and Weight: Larger or heavier shipments are more expensive.
  3. Distance: Longer ship routes cost more.
  4. Customs, Duties, and Taxes: Additional charges can vary on shipment depending on the origin, destination, and commodities.
  5. Seasonality and Demand: Costs are high during peak seasons or when the demand is higher.

How to Calculate Freight Shipping Costs

How to Calculate Freight Shipping Costs

Calculating the freight shipment cost can vary from one company to another depending on their own charges. But there is a formula that can make it easier for you to calculate your shipment cost. The formula is;

Freight Shipping Cost = BR + DC + WC + AC – D

Where

  • Base Rate (BR): The initial cost set by the carrier for the service, based on the type of freight.
  • Distance Charge (DC): Cost per mile or kilometer, calculated by multiplying the distance the freight needs to travel by the carrier’s rate per distance unit.
  • Weight Charge (WC): Cost based on the weight of the shipment, typically determined by multiplying the weight (in pounds or kilograms) by the rate per unit weight.
  • Accessorial Charges (AC): Additional fees that may apply for special services such as liftgate service, inside delivery, or hazardous material handling.
  • Discounts (D): Any applicable discounts based on volume shipping, loyalty programs, or special arrangements with the carrier.

Freight Shipping Costs on eBay

Freight shipping costs on eBay can be various. They depend on these factors

  1. Flat-Rate Shipping: Some sellers set an overhead cost, which might include packaging, handling, and shipping, typically listed in the item’s description.
  2. Freight Quote: The sellers may demand the buyers to ask for a custom freight shipping quote if the items are large or heavy. The rates will depend upon the buyer’s location and the specifics of the shipment.

In general, freight shipping is very costly for bigger-ticket items such as furniture or machinery, usually in the range of $100 to several hundred dollars at times.

How Your Shipment Dimensions and Weight Affect Freight Costs

How Your Shipment Dimensions and Weight Affect Freight Costs

Density determines the dimensions and weight of your shipment. High density, low shipping cost. This affects freight classification.

How to Calculate Freight Density

  1. Measure the length, width, and height of the shipment in inches, including packaging.
  2. Multiply the measurements to get total cubic inches.
  3. Divide the cubic inches by 1,728 to get cubic feet.
  4. Divide the weight (in pounds) by the cubic feet to get density (in pounds per cubic foot).

Freight Shipping Costs and Pricing

Freight costs consider various factors, including:

  1. Freight Weight, Dimensions, or Volume: Legal hauling limits and space usage are affected by the dimensions and weight of the shipment.
  2. Shipping Origin and Destination: Because of fuel consumption and operation cost rate of shipment is affected by distance. Moreover, accurate ZIP codes are crucial in this process.
  3. Freight Class and Density: The density and class of freight are determined by correct classification. It also has an impact on the rates.
  4. Type of Goods: The nature of the goods may require specialized equipment or handling.
  5. Economic Conditions: Fuel prices, seasonal demand, and market conditions also have a huge impact on shipment rates.

Understanding Freight Shipping Quotes

Since information drives accuracy, make sure to provide as much information as possible when securing quotes for freight shipping. Here’s the quotation process:

  1. Detailed Shipment Information: Give this information in as much detail as possible, the dimension, weight, and type of cargo. This would avoid unexpected charges so that what you spend lands up in the quote.
  2. Destination and Origin: Always provide the exact address with a ZIP code because shipping charges are location-based. Also, there will be different charges in the urban areas as compared to the rural ones because this has something to do with accessibility and service levels.
  3. Service Requirements: Telling beforehand about any special requirements, such as temperature control, hazardous materials handling, or liftgate services is crucial. All these do have an impact on the overall cost.
  4. Frequency and Volume: As a regular shipper, negotiate discounts for higher frequency or volume shipments. Most carriers give discounted rates for bulk shipping or under-contract agreements.
  5. Carrier Options: Make sure to compare quotes from multiple carriers. Carriers will have different services, different speeds, and different cost structures. Comparing them will enable you to decide which one works best for you in terms of cost and service quality.

Factors Affecting Freight Shipping Costs in Different Regions

Factors Affecting Freight Shipping Costs in Different Regions

Shipping freight can cost pretty much anything depending on the region. This can be attributed to regional factors in the following ways:

  1. Domestic vs. International Shipping: While the delivery charges are generally lower for domestic shipping because there are fewer regulations and less distance, international deliveries might also incur other additional costs such as customs duty, taxes, and import/export charges.
  2. Regional Differences: Shipment costs will be relatively cheaper in areas that are well developed, such as big ports or transport hubs, as there is competition and efficiency provided. For remote or less serviced regions with poor serviceability and distances, costs are more expensive.
  3. Local Regulations: Regions vary in their laws that define the shipping charges. Some regions require special permits and clearances for certain items, which adds to the cost when shipping.

How to Save on Freight Shipping Costs

Freight shipping is a process that can cost you some good sums. TEU Global provides details regarding how to reduce freight shipping costs. Here are some strategies to help reduce freight shipping costs:

  • Optimize Shipment Packaging: Proper packaging reduces the size and weight of the shipment which might reduce the cost as well. Use the most efficient package possible to not have extra space paid for or excess weight.
  • Negotiate Rates: If you are shipping a high volume, negotiate your rates with carriers. Most carriers will adjust their rate for you based on volume or a long-term contract.
  • Use Freight Brokers: Freight brokers will allow you to tap into a network and expertise to find the right rate and service. They may be able to open up opportunities for discounted rates, and further negotiate on your behalf.
  • Consolidate Shipments: It is possible to get the lowest overall cost when you group several shipments. LTL shipping thrives with the concept of consolidation wherein shared space by other shipments lowers costs per shipment.
  • Plan Ahead: Do not ship out at the last minute. Plan to get better rates and save expenditures on overnight shipping.

Final Thoughts

Understanding freight shipping costs is essential for managing your budget effectively, whether you are a company shipping commodities or an individual who happens to buy huge items. By considering factors such as the mode of transport, shipment size and weight, distance, and additional charges, you can gain a clearer picture of what influences pricing.

Additionally, factors like peak season surcharges, fuel costs, and freight class are also important. To achieve the most accurate estimate, make sure to provide all the shipment details and compare quotes from different providers. You will be able to easily navigate through the obstacles and complications related to freight shipping and avoid other hidden costs through this.

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Right Freight Shipping Solution For Your Business Needs
Logistics
October 31, 2024 By admin

How To Determine The Right Freight Shipping Solution For Your Business Needs

In today’s world, organizations all around the globe need a variety of freight solutions. The modern supply chain gives these solutions to meet the needs of these companies. Professional logistics experts give highly valuable insights so that companies can transport goods anywhere in the world. To transport your shipment people need multiple freight options depending on their products, suppliers, and trade patterns.

The major ways one can ship their goods are via air, road, and sea. In the logistics industry, the method you use depends on the goods you’re shipping, where you’re shipping from, and the destination where it is being shipped. When you know the pros and cons of these modes of freight the understanding of which mode is the most suitable one for your transport will be clear.

Types of Freight Shipping

Types of Freight Shipping

When it comes to transporting goods, choosing the right shipping method can make a huge difference in cost, speed, and efficiency. We will discuss in detail the key freight shipping types which include LTL (Less Than Truckload), Air Freight, Sea Freight, Truck Freight, Standard Freight, and Flat Rate Shipping.

1. LTL Freight Shipping

Less Than Truck Load Shipping (LTL) is a great option for customers who have smaller loads to ship because this method combines shipments from several customers into one truck trailer.

  1. LTL shipping involves transporting smaller shipments that do not require a full truck.
  2. Freight from multiple businesses is combined into one truck to maximize space efficiency.
  3. It’s cost-effective for businesses with smaller quantities of goods.
  4. Shipping costs are based on weight, dimensions, and the distance traveled.
  5. Delivery times may be longer due to multiple stops for other customers.
  6. Freight is often moved between several terminals before reaching the destination.
  7. LTL shipments are ideal for shipments ranging between 150-15,000 pounds.
  8. Carriers use pallets or crates to consolidate goods, minimizing damage risks.
  9. Many LTL carriers offer services like lift gates and inside deliveries.
  10. It’s suitable for businesses that don’t need urgent delivery.

2. Air Freight Shipping

Air freight shipping systematically includes the movement of goods through charter or commercial air carriers. Apart from being the fastest medium of transporting goods across the corners of the World, this type of shipping deliver products to diverse places as the domestic or international markets permit.

  1. Air freight shipping can be defined as a quick form of freight for heavy parcels via air.
  2. It is the most preferable option when shipping an item covering a long distance.
  3. Airfreight is most appropriate for those transporting goods that are delicate, or expensive.
  4. Rates are charged for goods on two measures, ie bulk or volume factors.
  5. Air transport is more expensive compared to shipping overseas or by truck.
  6. Duration of the delivery for the shipment typically is done within the 1 to 3-day limit.
  7. It’s also regarded to be the most dependable option, which involves the highest levels of accuracy in the security of goods and monitoring of the delivery process.
  8. All the airports share easily available customs and freight futures for international movement.
  9. For the security of moving sensitive items, for example, medical gear and electronics, air freight is always needed.

3. Sea Freight Shipping

Sea Freight Shipping

Sea freight shipping, consists of ocean material transport of large items imported in standardized size cargo containers. Generally, shipping containers are retained in the shipping vessels at any major ports located all over the globe and proceed along predetermined freight routes to achieve the main objective.

  1. Sea freight, also known as ocean freight, is the use of cargo ships to move goods.
  2. It is the cheapest mode of transport for heavy and bulky goods, especially for long distances.
  3. Containers are also utilized in transporting items to prevent them from being damaged due to weather and rough handling.
  4. Shipping can be either FCL (Full Container Load) or LCL (Less-than-container Load).
  5. Shipping times are likely to be extended, and the duration can be anywhere from 20 to 40 days, depending on the shipping route.
  6. Sea freight can move a variety of cargo which includes heavy equipment such as cars.
  7. Air freight costs are higher than sea freight costs but are dependent upon the volume of the container, the weight of the container, and the universal destination of the container.
  8. It is more eco-friendly as compared to air freight as it results in lesser emissions per ton of cargo.
  9. Designing for related services such as procurement shipping for port storage facility management, and clearance of goods.

4. Truck Freight Shipping

FTL or Full Truck Load shipping refers to the situation in which one person fills up the whole truck to carry their goods from one place to another. Some customers may also put a partial load on their own in one truckload. This option is practiced by many companies like TEU Global as it is considered less time-consuming than LTL.

  1. Freight transportation is mostly used for intercontinental or intra-country shipment.
  2. Several classifications of truck freight include Full Truckload FTL and Less-than-Truckload LTL.
  3. FTL is appropriate in cases where the shipper has an urgent need for a truck and where there is no way for split delivery.
  4. Trucking gives a great extent of domain in terms of the routes used and also in terms of door-to-door deliveries.
  5. It is usually less expensive than air freight composure but cheaper than sea freight for short distances.
  6. Refrigerators and hazardous categories of cargo can comfortably be shipped by trucks.
  7. Although the range within which the delivery takes may be breached, the time taken in most cases is from 1 to 5 days for deliveries made internally.
  8. It is great for few and many distances and allows domestic as well as interstate trade.

5. Flat Rate Freight Shipping

Flat-rate shipping involves a charge that is fixed irrespective of the weight or size of the package as long as it meets a certain dimension defined by the freight company. This is a very good way of shipping planned items without the stress of measuring the distance and the weight of the shipment.

  1. Flat rate freight shipping means fixed price will be charged for shipping irrespective of the distance or weight of the goods.
  2. It is used for standard shipping within a particular distance and weight.
  3. The shipping costs of freight are predetermined based on the average distance.
  4. Many wholesalers prefer using flat-rate shipping when they have a lot of goods.
  5. This process simplifies budgeting since the cost is predictable and stable.
  6. It can be used for LTL, air freight, and even parcel shipment.
  7. This process is less sensitive to weight or dimensional weight.
  8. Businesses that ship within a specific geographic area with set parameters use this mostly.
  9. It also assists businesses in avoiding extra charges, especially related to fuel or speed delivery.

6. Standard Freight Shipping

The most typical method used for shipment by most carriers is Standard shipping. It is a method in which cost is determined by the weight, size, and destination of the package. This method is used for deliveries that are not urgent, which makes it more balanced. It is more affordable for smaller shipment items, and it is very reliable for organizations that do not want immediate delivery. The delivery speed and cost both are normal not very fast and not very slow either.

  1. This method of shipment of goods is the most basic level of freight transportation.
  2. Ground and sea are the options it chooses for the transportation of goods from one place to another, i.e.,  trucks or ships.
  3. It has the most reasonable delivery time which makes it quite balanced.
  4. It is not good for urgent deliveries which need express services.
  5. It takes up to 3-10 days to complete the domestic process, whereas it might take many weeks for international delivery.
  6. It doesn’t include a guaranteed delivery date to the users.
  7. This process is cheap compared to other freight options.
  8. This method is mostly used for bulky and larger volume items.
  9. This process works best for companies that want fewer logistics expenses.

Conclusion

To summarize, it is necessary to comprehend the different categories of freight shipping LTL, air, sea, truck, flat rate, and standard especially when trying to enhance the logistics of a business and how it meets delivery expectations. Each shipping method can be evaluated based on freight cost analysis, freight shipping speed, and the weight or volume of goods being transported, making it essential to choose the option that best fits your needs.the weight of the goods transported hence the need to ensure that the best one fully fits one’s needs.

Whether you are sending out a few small parcels or hundreds of large containers, choosing the right freight method can help you run your business operations more efficiently and satisfy your customers.

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What Is Freight Shipping
Logistics
October 31, 2024 By admin

What Is Freight Shipping? A Comprehensive Guide

Imagine a world without trucks, ships, or planes carrying goods across borders. How will businesses work, and how will consumers receive their products? This is where freight shipping steps in; it is a process that is extremely important for the global economy.

Freight shipping is the process of transporting commodities, goods, and cargo by land, sea, or air. It is basically an integral part of many e-commerce businesses’ operations, especially when international shipping is involved.

What Is Freight?

What Is Freight

Freight is the transportation of goods in bulk via air, ship, road, or by an intermodal transport. Freight means the movement of any cargo from one place to another. It is not a parcel shipping. When an order is placed online for delivery to a specific area for a smaller packages that is parcel shipping where as freight is the shipment of larger bulks of goods.

Freight in shipping refers to the cargo that is transported from one place to another. It includes the cost of transporting these goods, packaging, loading, and delivering them to their destination. Freight can consist of anything from raw materials, bulk commodities, and sensitive products as well. It can be transported domestically or internationally as well.

In Logistics, Freight includes

  • Planning
  • Management (done by a Freight Forwarder)
  • Coordination of the movement
  • Storage of goods
  • Packaging
  • Warehousing
  • Customs clearance
  • Delivery to the final destination.

In freight shipping it is an important thing to make sure that the goods get delivered efficiently, cost-effectively, and on time.

Types of freight shipping

Freight shipping includes various types like air, sea, rail, and truck freight, each suited for different shipment sizes, distances, and delivery speeds.

Types of freight shipping

1. Full Truckload (FTL) Shipping

Ideal for large shipments that can fill a full truckload. It guarantees direct shipping with external shared space. It moves bulk which is large enough to use an entire semi-trailer, that is typically more than 15,000 pounds.

2. Less Than Truckload (LTL) Shipping

It is best for smaller shipments that don’t require an entire truck. Mixing freight from multiple shippers helps reduce fees by using shared space. LTL is typically used for shipments between 150 and 15,000 pounds.

3. Intermodal Shipping

This method uses more than one mode of shipping to transport goods over long distances optimally. Including rail in your freight shipping can reduce fuel use, lower costs and offer a reliable method of shipping

4. Air Freight

Best for urgent, time-sensitive delivery. It is more expensive but it is fast and used for high-value goods.

5. Ocean Freight

It is used to ship large bulks internationally. It is a slower process and a cost-effective method for non-urgent shipments.

6. Expedited Shipping

Used for urgent deliveries that need to arrive quickly. This one has a generally steeper price but still guarantees fast delivery. Expedited freight refers to time-critical shipments.

7. Freight Rail

To transport bulky and large shipments over long distances within a country. It is an eco-friendly method which is cost-effective as well.

What classifies as a freight shipment?

Freight refers to any shipment above the following size and weight thresholds:

30 inches (inches height x width) x 30 inches x 30 inches, or 150 pounds and above. On the other hand, smaller packages may cost less for parcels in most cases.

For instance, eBay freight shipping is a service offered by eBay to facilitate the transportation of large and bulky items that cannot be shipped using standard parcels.

How does freight shipping work?

How does freight shipping work

Freight shipping entails larger and heavier goods that are more cumbersome thus it’s not as straightforward as parcel shipping. Instead, it requires use of bigger infrastructures which involves loading and unloading systems, bulky transport vehicles and ports to facilitate unhindered movement of shipments.

Shippers often load the goods in trucks or in pallets. Pallets, or wooden platforms used for shipping, are typically 48” x 48” or 48” x 40”, and around 26 which can approximately fit in the average trailer. This allows a more easy, without any damage, and a convenient transportation.

Characteristics

Freight shipping includes the shipment of goods which is very different from normal parcel delivery. Freight shipping is more cost-effective and efficient. Some huge companies, like FedEx and UPS, also have freight divisions, but they operate as separate units for it and parcel delivery as well.

Anything that weighs more than 150 pounds, is longer than 108 inches, and is greater than 160 inches in length comes under the parameters of freight shipment.

Benefits of freight shipping

Freight shipping offers cost-effective, reliable solutions for transporting large quantities, enabling businesses to streamline supply chains and reach global markets.

1. Top Carriers

In case you’re transporting significant cargo, it is important to guarantee your commodities reach safely and promptly. Online freight services work hand in hand with reliable high-class carriers to achieve this.

2. Cut down on Shipping Fees:

Businesses may take a lot of time when searching for the best rates since they have to find different carriers, get quotes, and then compare the prices. However, TEU eases this process by providing you a trustworthy service at competitive rates.

3. Timely Freight

When dealing with time-sensitive shipments, it is necessary to respect tight delivery windows. Different shipping options allow you to select that particular service level that meets deadlines easily.

Challenges

  1. The increasing demand for skilled people is growing rapidly in the logistics industry. It is important to firm a strong team as small business operators quickly realize the need for a good team. Managing freight shipping can be tough, so having a strong team helps during peak seasons. Hiring reliable people in the team is the only solution to handle challenges more effectively.
  2. Having proper information about the modes of freight is really important. It gives you flexibility if you’re dealing with less-than-truckload (LTL) or full-truckload shipments. The method or mode chosen for shipment is selected according to the need. As it saves both time and money.
  3. Using the right tools during the shipment process is crucial. Understanding the importance of competitive shipping rates can reduce the amount of time and money. Many shippers find themselves under the rubble with rigid contracts. High rates can be overcome by booking everything in advance, so you can avoid paying more than expected.
  4. Incomplete bills, not classifying freight correctly, small mistakes, or being unprepared are common issues among shippers. Being prepared can help you avoid costly surcharges, delays, or even customs issues for international shipments.
  5. Delays in freight shipping can occur with any company. These are unavoidable because everything is not under one party’s control. For instance, one may lose their shipments’ progress, so having online tracking tools helps you to stay on top of things. To anticipate any issues that might come in the process, the shippers can work with reliable companies that have online tools that track the shipment more effectively.

Conclusion

Freight shipping is a process used worldwide now; having complete knowledge of this process is the only way one can make sure that money and time are being saved. This process can lead to challenges like building a skilled team, choosing the right shipping methods, securing competitive rates, and ensuring proper preparation and documentation. So, making the right decision and having the right people on a team can help to overcome these challenges.

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BOL Number vs PRO Number
Logistics
October 30, 2024 By admin

BOL Number vs PRO Number: What’s the Difference?

The difference between a BOL (Bill of Lading) number and a PRO number in Logistics is very important. This difference is crucial to understand for efficient shipment tracking and management as well.

These numbers are important so we can understand less-than-truckload (LTL) and other freight types. They help both shippers and carriers to monitor the movement of goods. But the question is what makes them different from one another? So, let’s explore them

What is a BOL Number?

A BOL number is a unique identity that the shipper generates. A “BOL” or “Bill of Lading” is a unique number. It is made and designated by the sender of an LTL or other form of freight delivery.

Mostly, every shipment has a different BOL number. It is to ensure only one shipment is associated with that number.

This BOL number is present on the Bill of Lading document. It is present at the top of the document to make sure that it is visible to the shipper, recipient, and carrier throughout the shipment.

What is a PRO Number?

An abbreviation for “progressive rotating order” or “progressive number” is a unique 7-to-10-digit number assigned through a provider or a third-party logistics company to track the shipment from pickup to delivery.

The PRO number is displayed on the Bill of Lading and shipping labels. It is typically positioned on the pallet for easy scanning during transit.

A PRO number is generated via the service or logistics service providers. Using a PRO number is crucial when tracking a shipment. Because the carrier or service provider may not have access to complete shipment data such as the BOL number in their system.

Key Difference Between BOL and PRO Numbers

Key Difference Between BOL and PRO Numbers

The primary difference between a BOL and a PRO number is who generated it, the shipper or the shipping provider. A BOL number and a PRO number are the numbers that perceive LTL (much less than truckload) and other types of freight shipments.

A BOL number is an important and sensitive piece of document that highlights the origin, destination, and contents of the load. This number is made to ensure that the shipment is accurately documented and traced from the moment it leaves the shipper’s facility.

A BOL number may have different lengths. It depends on the logistics service provider or the carrier. BOL numbers typically consist of eight to sixteen alphanumeric characters. Because of this versatility, carriers can design distinctive identities that work with their tracking and documentation systems.

Whereas, a PRO number is used for tracking purposes within the carrier’s system. This allows both the shipper and the recipient to track the shipment’s progress from pickup to delivery. This number is important so that the shipment arrives on time at the destination.

The PRO Number is used to track the movement of the shipment, to identify shipments within the carrier’s system, to access shipment documents, to check shipment status, and to track the shipment’s location.

Key Identifiers in Tracking Shipments

  1. BOL number: This number is created by the shipper.
  2. PRO number: This number is assigned by the carrier.
  3. SCAC code: BOL number and PRO number, containing 7 to 10 digits, are usually linked with a SCAC code. This is to create a comprehensive tracking system that serves as a tracking number in the realm of small parcels. SCAC codes specify the carrier responsible for shipping the cargo and are determined by the National Motor Freight Classification or NMFC.

When to Use a BOL Number vs a PRO Number

When to Use a BOL Number vs a PRO Number

To make sure the shipping process runs smoothly one needs to know when to use a BOL number and a PRO number.

The PRO number is assigned at various points in the shipment planning and execution process. Such as

  • When the bill of lading has to be generated
  • When the carrier has to induct it into their terminal.
  • When the carrier has to pick up the shipment

The end-to-end warehouse system makes sure to integrate all packing and shipping process together. This process depends on the shipper’s order fulfillment process and systems.

A BOL number is assigned to a shipment at the time the Bill of Lading paperwork is generated. Moreover,  the Bill of Lading document provides pertinent information about the shipment. It is usually one or more US-sized pages that tell

bill of lading
  • Where the shipment is coming from
  • Where it is going
  • When will it arrive
  • Details regarding the contents of the shipment.

This number is used throughout the shipping process as a reference point for all purposes. TEU Global loves serving their customers beyond expectations.

Both numbers are crucial to the shipping process. They serve many functions at different stages as well for instance PRO number is to track and ensure that the shipment is on course while BOL number is for initial shipment setup and documents.

What is SID number

A SID (shipment identification) Number is another unique identifier that is used to track shipments on a bill of lading.

The BOL number covers the entire shipping document and contract. The SID number is generally used to identify individual shipments or orders within a bigger consignment.

Common Mistakes and How to Avoid Them

Common Mistakes and How to Avoid Them

In Logistic worlds it is normal to make mistakes. Understanding BOL and PRO numbers correctly can help avoid these mistakes.

  1. Incorrect or missing pro numbers can lead to losing the track of shipments. This is one of the most frequent mistakes made. Making sure that the PRO number is correctly assigned can help to avoid this mistake. As this small mistake can disrupt the supply chain. Which can lead to unhappy customers, delays, and lost goods. At TEU Global we use reliable logistics software that help automate this process and reduce the chances of human error.
  2. When a company is dealing with different shipment they tend to be inconsistent with their use of tracking number. Which leads to many problems and unsatisfied results as well. Ensuring that the BOL and PRO numbers are accurate can lead to seamless shipment process as well.
  3. Another common mistake made is not carefully filing the Bill of Lading or misplacing the form. It can lead to significant issues in shipment process. As all the documents must be handled with care and sensitive information should be held private. Its important to not only care for the documents but also give the complete information to all the relevant parties.

Role of Technology in Managing BOL and PRO Numbers

Logistic operations are nowadays used in a larger number. And technology has stepped into this field to make sure things are more smooth and seamless. The role of technology in managing BOL and PRO numbers has become more crucial. These technological software are simplifying the process of tracking, generating, managing all these operations. This is done so the risk of a mistake or error can be reduced.

  1. Auto-generating Pro Numbers: Businesses transport is done by utilizing the system to store a specific set of pro numbers from different carriers contracted by the company. These companies ship high quantity of less than truckload (LTL), truckload (TL) shipments, and using a thorough multi-carrier shipping system. So ,instead of reaching out to carriers every time the delivery system requires a pro number for a shipment, which is the usual practice. These will store a block or series of PRO numbers from different freight carriers in the transportation management system (TMS).
  2. Role of technology: The role of technology in logistics is set to expand even further. These technologies are offering far better results with least errors. The emerging AI-powered analytics are expected to give way better results with efficiency.
  3. Carrier Systems: Integration with carrier system is the new trend. Many logistic platforms are integrated with them. This integration helps logistics platforms  to have an up-to-date data analysis of their data with no or least miscommunication or error.

Conclusion

In summary, both BOL and PRO numbers have a very important role to play in the world of logistics. The process of shipment is incomplete if one does not understand the importance of each number. However, understanding their differences and their importance can help in maintaining a competitive edge.

Any small issue regarding the process of shipment can be solved by communicating TEU Global at their Helpline Number. The shipment process continues to evolve and the role of technology will soon take a lead in the world of logistics.

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