Without cross-border logistics, international shipping quickly becomes a major headache for smaller businesses. Luckily, your logistics partner has remedies to help facilitate the movement of products from country to country.

It would be fair to say the international trading landscape is becoming more complex. But considering global transportation and supply chain industries are constantly evolving, a more appropriate statement recognizes that the nature of cross-border shipping has never stopped changing to begin with.

Let’s have a look at how logistics fits within the global supply chain, and possible solutions to effectively managing international shipping.

What is Cross-Border Logistics?

Cross-border logistics is an integral section of the supply chain that focuses the efficient flow of products as they pass from country to country. Along with providing transportation services, its purpose is to facilitate compliance with legal and tax regulations as products are shipped across international borders.

Types of Cross Border Freight Shipping

Cross-Border TL/LTL

Whether you have full truckload or less-than-truckload cargo to import into and export out of Canada, we have the logistics expertise to expedite freight shipments and reduce the risk of costly border delays. We can even help expedite imports into Canada valued at $3,300 or less.

International Freight Forwarding

We can help manage the import of goods into and export of goods out of North America and facilitate delivery into the Canadian market. We pick up shipments offshore and load containers onto ocean liners for delivery into Canada.

What are the Challenges to Cross-Border Logistics?

The problem is: how to seamlessly manage courier, freight, freight forwarding, air cargo and associated international supply chain needs. The solution is: through cross-border logistics.

The very nature of logistics involves the handling and tracking of goods as they move through your supply chain. When your products need to move through another country, cross-border shipping multiplies the complexity of getting your products to their destinations. Additional paperwork, the potential for customs delays and multi-carrier handoffs are just a few of the issues that make moving products across borders much more complicated than is reasonable for smaller business.

Every business wants to main a competitive edge in the marketplace. A firm can help improve its operational position by maximizing logistics strategies that affect the movement of products as they navigate across borders.

Logistics partners with experience in cross-border freight management must have professional people, systems and processes in place to help facilitate the transition of goods from one country to another.

Without help from a third party logistics professional, critical tasks quickly wind up outside a small company’s capabilities. Some of these tasks include:

• Shipping
• Order tracking
• Tracing
• Liabilities
• Carrier handoffs
• Meeting expected delivery times
• Returns and Reverse Logistics
• Customs paperwork and clearance

Cross-Border Shipping vs Local Shipping

The need to move products across borders arises from one of two conditions: products on their way to final destination or, materials are being transported to facilitate the manufacturing process. For example, one shipping path would be a smart phone on its way from the manufacturer to the distributor or retailer, whereas the other would be the import or export of components and raw materials that constitute the smart phone itself.

Anyone who’s run an inventory-based business knows that, when bringing in significant quantities of supplies from another country, duties become a serious consideration when budgeting and projecting costs. It’s usually more cost effective to try and source local fulfilment for the products you need. Drawing from inventory that is stocked regionally gets around a host of cross-border complications in that duties, customs, trade tariffs, shipping and associated international paperwork has already been taken care of.

Not only can a business leverage the current trend of “locally sourced”, there’s the added benefits of supporting local economies and keeping working capital within the region itself. But as much as it may be preferred to find sources locally within your own borders, this isn’t always possible.

Still, the flow of goods across borders shows no signs of any serious degradation. If anything, international shipping and logistics is booming:

“”Overall, the value of global trade reached a record level of $28.5 trillion in 2021,” the report says. That’s an increase of 25% on 2020 and 13% higher compared to 2019, before the COVID-19 pandemic struck.”

source: UNCTAD’s Global Trade Update

Logistics Shipping and Technology

In today’s business world, particularly with the rise of e-commerce, the mere thought of trying to manage shipping without the aid of technology is a non-starter. Technology effectively helps provide end-to-end supply chain visibility and reduce operating costs. On the international front, electronic data solutions provide easier management of logistics functions such as:

• Route planning
• Warehouse management
• Coordinating shipping partners
• Freight preparation
• International commercial terms management
• Other required import and export documentation

For businesses on the receiving end of cross-border shipping, implementing a system that allows products to arrive Delivered Duty Paid (DDP) helps to reduce friction from unexpected charges at end points. But capabilities such as this depend on improvements derived from actionable data provided by digital operations.

Additionally, being able to respond effectively to customer demands also requires international logistics networks to have transparent systems in place. Better logistics providers incorporate international tracking systems to monitor basic shipping needs such as end-to-end order tracking and in-flight delivery changes.

Problems Facing International Trade

Due to the sheer number of globally recognized borders, the challenges facing international logistics are immense. Inherent roadblocks arise from how each country administers their own international customs and border management.

To try to make importing and exporting processes as seamless as possible, efforts are constantly being made to harmonize, simplify and standardize cross-border trade procedures. One solution is to lessen restrictions on border controls by shifting certain responsibilities to suppliers and end users through supply chain security. But these same efforts would also have to incorporate contingencies that curb the ability of less scrupulous entities looking for ways to manipulate the system by way of loopholes. Without proper governance, these unintended consequences carry the possibility of undermining public safety and economic security.

Ultimately, the goal of smooth cross-border logistics operations should minimize the regulatory burdens placed on businesses. For government controlled agencies, efficient border management implies the best use of inspection resources and encourages good compliance behaviour. The downstream benefits resulting in a healthier business environment and wider range of social and economic benefits.

Additionally, relying on cost-effective outsourcing from other countries depends on a consistent cross-border supply chain. But over time, this consistency occasionally gets disrupted as laws governing international trade change. Let’s say for example, you manufacture types of wooden furniture from a certain species of tree that, through regulatory change, becomes internationally protected. Suddenly your source is an endangered species.This is what happened with various flora and fauna species that fell under the CITES treaty in 1975 and was ratified by over 180 countries:

The objective of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is to control the trade in species of wild animals and plants that are, or may be, threatened with extinction as a result of international trade.

Furthermore, as we’ve seen in the news, geopolitical landscapes affect trade regularly, which winds up compromising existing trade capabilities. Take for example the recent conflict between Russia and Ukraine. With Ukraine being one of the world’s largest grain producers, its ability to export the commodity was seriously hobbled when Russia restricted access to Black Sea ports.

Unfortunately, regional and bilateral trade regimes continue to become normalized, particularly in emerging markets. This results in a host of tariff and non-tariff conditions, varying degrees of shipping standards, complicated rules of origin and regulatory compliance issues which make it difficult and costly for businesses to navigate. Since it began life in 1995, The World Trade Organization (WTO) continues to struggle with equalizing multilateral trade efforts due to differing political policies.

How Can Brimich Logistics Help?

Today’s cross-border shipping is facing higher demand and expectations for fast, seamless delivery. Your business deserves the capacity it needs to operate, flexible transportation models, and the expertise needed to navigate regulations and processes without delays.

If timing is critical and your budget is under fire, trust Brimich Logistics and Packaging to help you navigate the complexity of shipping between countries.

What is a Hub and Spoke Distribution?

The term hub and spoke can be used to describe any process that resembles the wheel of a bicycle: a central location (or hub) that provides a fixed point from which delivery paths (or spokes) radiate outward.

In logistics, the hub and spoke system is used to coordinate inventory from a single large distribution centre to multiple delivery locations such as warehouses or fulfilment centres.

How Does a Hub and Spoke Model Work?

As mentioned, the hub and spoke model provides a means of distribution that relies on a central location (the hub) and a number of spokes leading out from that hub.

The main hub is where the goods are stocked, and the spokes represent the various distribution centres that deliver the goods to customers.

Hub and Spoke vs Point-to-Point Distribution Models

Point-to-Point vs Hub and Spoke Distribution Models

Examples of Hub and Spoke Distribution Models

This system is often used in industries like air travel and logistics, as well as retail.

The Arline Industry

In the case of an airport, a passenger might travel from New York to London. Using a classic hub and spoke system, the passenger boards a plane in New York, which flies to the London airport and then lands at Heathrow Airport in London.

The London airport, in this example, is the hub. The spokes would be the routes the plane takes to get to London from New York.

The Logistics Industry

With the help of preferred logistics partners, merchants can control inventory centrally, source products from the least expensive suppliers, and deliver goods to customers from local warehouses.

By aggregating their inventory at a centralized point, shippers can take advantage of more affordable rates. These less than truckload (LTL) shipments can then be combined to fill a single truckload which can then be dispersed throughout the network.

Using this model, small and medium size businesses (SMB’s) can negotiate for better rates often associated with full truckload (FTL) shipments.

The Retail Industry

Due to the efficiency of hub and spoke distribution, large (and some smaller) retailers such as Amazon have adopted the system to help expedite the flow of shipping to consumers.

For instance, to help shorten time in transit (TNT), Amazon has fulfillment centres distributed across the country to facilitate the fast delivery times consumers have grown accustomed to.

This model also helps SMB’s realize the same high efficiency a larger retailer fulfillment network uses across all of their sales channels.

Will Hub and Spoke Distribution Work for Your Business?

Hub and Spoke distribution systems are particularly useful for any industry that relies on the movement of physical goods through a supply chain. These systems are commonly used amongst retailers, wholesalers, and manufacturers in order to make their logistics operations more efficient.

As centralized distribution models, they are particularly useful for retailers that ship goods to customers from multiple locations.

They’re also very beneficial for manufacturers and wholesalers who have long supply chains. For example, a manufacturer in China ships parts to a plant in Thailand, which assembles the parts and ships the finished goods to a distribution centre in the United States, which then distributes the goods to retailers.

Businesses may also consider a hub and spoke fulfillment model for their business if they are already distributing their inventory, but have excessive LTL freight rates eroding their profits.

Here are just a few of the benefits of a Hub and Spoke distribution system:

• Increased capacity to handle peak periods – A hub and spoke system can allow for a quicker, more efficient delivery of inventory during times of peak demand. This enables businesses to avoid costly out-of-stocks and keep their customers happy.
• Centralized inventory control – Having your inventory distributed among several locations increases the risk that customers may not be able to get what they want. A hub and spoke system allows you to keep a close eye on inventory at all locations and respond quickly when there’s a shortage.
• Lower Time In Transit (TNT) – Time in transit significantly affects logistics costs. A hub and spoke distribution model can help lower shipping costs at two key points within the supply chain: receiving inventory from manufacturers and forwarding inventory to fulfillment centres.
• Easily trackable deliveries – With a hub and spoke system, each delivery is tracked. This makes it easy to spot where potential issues may be occurring and address them before they become serious.
• Better use of resources – Hub and spoke distribution systems help you make the most of your resources. For example, if you’re experiencing high demand in one area and low demand in another, you can redirect resources so they’re going to the places where they’re needed most.
• Lower costs – Hub and spoke systems can help you lower costs by using less warehouse space, renting less expensive real estate, and using fewer resources.

Disadvantages

While hub and spoke systems are very beneficial for many businesses, they do come with some drawbacks:

• Higher inventory costs – The biggest disadvantage of a hub and spoke system is that inventory is often more expensive because of the need to rotate inventory among several locations.
• Fragmented customer service – Negatively affected customer service. Customers in one area may receive their goods more quickly than customers in other areas, for example.
• Inability to promote certain products – If you have certain products that are only available in one location, customers in the other locations won’t be able to get them.
• Slower response times – Because of the distance between spokes and the hub, it may take longer to respond to customer needs and ship products.

Key Takeaways

A Hub and Spoke distribution system provides centralized inventory control, making it easier to track deliveries and respond to customer needs for just about any physical product based business. As a distribution model, it can also make it easier to rotate inventory and use fewer resources.

However, like many other things, it does come with some disadvantages, including higher inventory costs, a fragmented customer service experience, and slower response times.

On the whole, after weighing the pros and cons, hub and spoke distribution systems are beneficial for a good variety of businesses that want maximized resources, efficient inventory flow and cost control.

Here’s an easy step-by-step guide on how to ship a pallet with your products properly loaded and ready for shipping.

3. Choose the Right Shipping Pallet

• Choose a pallet suitable for a forklift, hand truck, or pallet jack
• Make sure the pallet is strong and free of damage
• Select a pallet that’s at least standard industry size (48” x 40”) box-style

For most freight shipping needs, there are two main pallet types:

Further Tips on How to Secure a Palletized Load

Here are some tips and guidelines for stacking to create a stable, safe and secure load:

Stacking Tips

Column Stacking

In a column stacking pattern, boxes or cartons are stacked in straight columns with no overlapping edges. In most cases, column stacking increases the top-to-bottom compression. For extra load stability, place corrugated pads – load protector pads, between the tiers.

Interlocking stacking

Interlocking stacking is useful if the carton contents are more rigid in nature. Interlocking cartons can also increase stability. With this method, boxes are stacked corner to corner and edge to edge for more strength.

Pallet Loading Tips

Bands

Banding is one of the most common ways of securing the bundled load to the pallet. The key is to keep the banding close to the load. This helps to to control damage, exposure, or breakage.

Small loads that don’t take up the full surface of the pallet should be centered and banded to the closest deck boards of the load’s outer edge to increase stability, not the pallet’s edge.

Load Protectors

Load-protector pads help to prevent damage to the top and bottom layers of your shipment. Protector pads also help to distribute the weight of top-loaded freight.

Load protectors at the bottom help to provide a level surface, plus they offer additional protection from pallet nail heads. Moreover, they also help to keep containers from getting caught up in the pallet board gaps.

Edge Boards

Edge boards, also referred to as angle boards, are an effective way of reducing damage to container edges that make up the load corners. To help unify the load, edge boards should run the full length or depth of the stack and increase vertical stacking strength.

Foam Cushioning

With foam cushioning, density levels can vary. Therefor it’s important make sure the foam you use is dense enough to protect your product. It’s also a good idea to test the cushioning to make sure it will stand up to actual shipping conditions.

Bracing

Rounded items that can roll or shift should be braced on a pallet base that’s forklift-accessible. The greater the shipping weight, the more sturdy the bracing should be.

What to Avoid

Overhangs and Protrusions

Uniformity is key to load safety and stability. Never let the loaded products overhang the vertical limits of the pallet. Not only does this increase the risk of punctures, package tears and product damage, it can also result in a reduction of compression strength by as much as 32 percent.

Pyramid Stacking

Because pyramid stacking doesn’t have a level top load surface, you not only limit the ability to maximize space and save shipping costs through stacking additional pallets, you also run the risk of additional damage through handling.

Common Pallet Shipping Questions

What are the most common pallet sizes? What are standard pallet dimensions?

Due to the scope and breadth of the food industry, the most common pallets used are CBA (Consumer Brands Association) sized pallets with dimensions of 48″ x 40″. In North America, these are considered the standard pallet dimensions.

The next most common pallet sizes are 42″ x 42″ and 48″ x 48″.

How do I pick the right pallet size?

Your required pallet size will depend on what you’re shipping. It will also depend on where you’re shipping it to, and how you plan to load and unload your freight.

A good start is to investigate common shipping procedures and materials used with similar products in your own industry. Because products and package sizes are fairly consistent, this will help you determine the appropriate pallet size.

How Do I choose the right type of pallet for shipping?

Once you have a pallet size in mind, give yourself a budget. As with wooden vs plastic pallets, some pallets are cheaper than others, with wood being the standard option. Depending on quality and material used, some can last longer and others can be easily recycled.

For example, if your products are heavy, you might want to consider a more robust type of pallet.

Additionally, the size and type of pallet you choose should also fit within your industry’s transportation and storage requirements.

Recommended Types of Pallets for LTL Shipping

For typical LTL and FTL shipping purposes, recommended pallets should have the following characteristics:

• Standard wood pallet measuring 40″ x 48″
• Have four-way entry capabilities
• Be relatively new and undamaged
• Sturdy enough to withstand heavy or light loads
• Support the full weight of the packaged products
• Withstand the handling required in the shipping environment
• Have minimal top board spacing to avoid forklift blade impact

Pallet Types to Avoid in LTL & TL Shipping

We don’t recommend these pallets in general:

• Corrugated fiberboard pallets
• Damaged or repaired pallets
• Pallets that are rotten or made of flimsy materials
• Pressed block-style pallets
• Molded pulp pallets
• Be made of materials that are prone to moisture

The reason the above items are not recommended is because these types of pallets and materials tend to lack sturdiness, stiffness, and strength of standard wood pallets.

How much do shipping pallets cost?

Pallet costs will vary depending on what they’re made of, quality of the construction and their size. If you need help determining a pallet that’s a good fit right for your product, business and logistical needs, contact our customer support team.

How can I find or buy shipping pallets?

There are a number of resources you can use to locate and purchase pallets. But keep in mind that if you buy them privately, they may be rejected because they don’t meet the standards of your shipping service.

Your logistics provider will usually have a surplus of suitable, industry approved pallets and help you negotiate effective terms to get your products shipped safely.

How much does shipping a pallet of freight cost?

Because there are so many variables, that’s a hard question to answer effectively. It depends on what you’re shipping, where your shipment is coming from and it’s going to, how much it weighs, and so much more.

To get an accurate idea of the cost for your particular needs call Brimich at 1-855-752-5783 to get a quote today.

How many containers or cartons fit on a pallet?

The number of containers or cartons that can fit on a pallet depends on what the type of product you’re shipping, its overall weight, the size of the pallet, and its stacking configuration.

With a few of these details in mind, you can use this pallet loading calculator to help you see how many items of the same size and weight you’ll be able to put on a single pallet. Keep in mind the calculator only supports containers that are of the same size and dimensions. If you have multiple sized containers, you might want to consider contacting a reliable logistics company to get a quote.

What is the weight of an empty pallet?

The average wooden pallet measuring 48” x 40” will weigh somewhere between 33 and 48 lbs (or 15 and 22 kg).

Some standard pallets weigh as little as 30 lbs, and others up to 70 lbs depending on the density and weight of the  specific material they’re made from.

How much weight can you put on a pallet?

Weight loads for standard pallets can be between 3,700 and 4,600 lbs, or 1680 and 2087 kg. Other factors include pallet capacity, dimensions, type and the material it’s made of.

How high can you stack a pallet?

Generally speaking, the maximum loaded height for a standard-sized pallet shouldn’t be more than 60” or 1.5 meters. Best practices start with the heaviest containers on the bottom and the lightest on top.

Pallets should also be loaded uniformly with straight vertical edges, in other words without leaning to one side or have protrusions beyond its boundaries. This is not only important for the protection of your products, but the safety of the those who load and unload your cargo.

How many pallets fit on an LTL?

Typically, LTL (less-than-truckload) shipments will fit between 1 and 6 pallets.

How many pallets fit in a 53 foot truck?

Assuming it’s a completely filled 53’ truck, a full truckload (FTL or TL) can hold anywhere from 24 to 30 pallets.

In Summary

Knowing how to ship a pallet properly may not be rocket science, but it makes a huge difference in controlling avoidable losses caused by damages and situations.

The overall key thing to keep in mind is safety; safety for both your products and your business’ reputation, and for those who help you move your goods.

If you need help with anything related to shipping your pallets or other logistical needs, give Brimich a call today!

Freight Shipping Transit Time

In freight shipping, transit time refers to how long it will take for a shipment to be delivered from the point of pickup to its final destination.

Depending on the the distance between the two points and the shipping method used, the amount of time can vary greatly. Therefor it’s a good idea to get an estimate from a preferred logistics company before booking a shipment.

Less-than-truckloa (LTL) shipping is an excellent option for shippers whose loads are less than a full truckload but too big for parcel post. But how long will it take for your shipment to arrive?

Shipping times you can expect by transit mode

• Full Truckload (TL or FTL) — With the exception of expedited shipments, full truckload is normally the fastest and most cost-effective way to ship by road. Without having to transfer the freight, the truck travels directly to the load’s destination.
• Less-than-truckload (LTL) — A common alternative and cost-effective method of moving smaller shipments. Because different shipments are aggregated into a single load, the freight must periodically stop for loading and unloading. This leads to increased freight transit times and can take slightly longer than FTL. To help determine what mode may work best for you, try this LTL transit time calculator to estimate shipping time for your freight.
• Intermodal Shipping, or rail shipments — As infrastructure improves, freight transit time by rail becomes more reliable. When averaged out, shipping times by rail is comparable to over-the-road shipping, plus it’s less prone to problems common to road-based delivery.

Delivery options for time-sensitive shipments

When standard transit time isn’t fast enough, or your freight needs to be delivered on a specific day or at a specific time, time-critical solutions can provide your best options. Keep in mind that faster freight delivery is usually associated with higher fees:

• Expedited Ground – the fastest ground shipping. With this option the freight never stops moving and is delivered as quickly as possible.
• Time Definite Service – ensures your freight is delivered by a certain day or time.
• Domestic Air – this solution offers the fastest shipping and includes multiple options to expedite your freight: next flight out, second day, deferred and charter. Most of these options are faster than ground, making air the ideal choice for critical shipments that need to reach their destination quickly.

LTL Shipping Times

Because of the nature of LTL shipping, times can vary widely depending on the carrier, the number of stops required and preferred routes. Here’s a more in-depth look at the major factors:

• Required Route: Logistically, shipments to less populated areas may take longer. With fewer trucks in remote areas, your shipment may have to wait for a full truckload before it continues on its route. As a rough example, freight being shipped from the coast to remote midwest points may take between 7 and 10 business days.
• Total Distance: When shipping freight over ground, the overall distance is the largest factor affecting shipping times. Drivers and trucks are limited in the number of miles they can travel each day. Speed limits, traffic laws and personal time behind the wheel all have bearing on the time a shipment will take. as well as regulations governing the time an individual driver can be behind the wheel each day. Typically, intrastate moves take 1-2 business days to arrive, regional shipments may take 2-4 business days, and cross-country shipments may take 4-6 business days.
• Operator Availability: As we’ve seen in the last few years, the number of operators has been less than what the industry could make use of. Due a shortage of qualified drivers and the recent conditions imposed by the pandemic, shipping times have risen sharply.
• Number of transfers: While full truckload (FTL) shipments generally take the shortest possible distance from point A to point B, LTL shipments may make several stops and transfers along the way. Your shipment is likely to first head to a regional terminal, where it will be taken off the first truck and sorted onto another truck headed towards its final destination. Depending on the carrier’s routes, this may happen more than once. Sometimes, shipments are even transferred between carriers, especially on cross-country trips. The more stops and transfers your load makes, the longer it will take to get to its destination.
• Weather and unexpected delays: Bad weather, poor road conditions, traffic and mechanical breakdowns can all cause unexpected delays in ground freight shipments. These delays can be difficult to make up, because drivers are still subject to the same traffic laws and regulations—chances are, they were already going as fast as possible for their route.

How to Reduce LTL Shipping Times

Because of the factors that influence freight shipping, LTL is usually best for shipments that don’t depend on hard delivery timelines. Still, there are ways to speed up your shipments and reduce your LTL shipping times:

• Choose the right carrier to begin with. As with any service-based business, different carriers can quote dramatically different delivery estimates. Quotes will depend on how much coverage they have for the given area, plus how many transfers will need to be made to get your shipment to its destination. You may find it’s possible to get a better quote from a regional carrier if you’re shipping intrastate or regionally. And they may provide better coverage for the same route. Of course, when freight shipping times are critical, it’s always best practice to shop around.
• Consider partnering with a 3PL company. Third-party logistics companies can be the perfect choice if you have ore complex LTL shipping needs. For example, a fully capable 3PL company will employ the latest software to help determine optimal delivery times and control costs. By using contacts throughout their preferred carriers network, they effectively coordinate shipments that can require transfers from one regional carrier to another.
• Ask about freight delivery guarantees. For an extra fee, some carriers will offer guaranteed or expedited delivery. If your freight delivery times are crucial, it might be worth it to find a carrier who offers this service.
• Help mitigate damage with proper packaging. Carefully organize and pack your shipment for transit before it gets on a truck, and make sure your shipments properly fit loadable and stackable pallets. Doing so will help ensure your products have a smooth journey to their destination.

Understanding LTL shipping times will help you make the right choice for your ground shipment. A little research can help you reduce LTL shipping times and get your load where it needs to go on time.

Sea Freight Transit Times

When it comes to shipping by sea, there’s a wide range in shipping times due to the sheer number of ways to ship, plus the endless combinations of destinations.

Overall, there are about 107,000 various UN Codes for Trade and Transport Locations (UN/LOCODE) spread across 249 listed countries and territories.

Therefor the time it takes to ship freight from port to port by sea will be greatly affected by the geographic distance between ports.

Let Brimich Help You Get the Best Freight Delivery Times

Brimich Logistics is a team of professionals always available to learn the specifics of your business, and help you choose the best shipping method for your freight. Contact Brimich today to get end-to-end visibility for every step of your freight’s journey along the way.

Whether you’re looking to brush up on your freight shipping and logistics vocabulary, or just looking for information as you get your feet wet,  this guide is for you. Here’s a few of the most common freight shipping acronyms, what they stand for, and the situations where you might find them.

Acronyms Used in Shipping Options

Before you send an RFQ (Request for Quote), you should first understand what type of carrier you’ll need. Here are some of the more common freight carrier options:

• TL – full truckload
  Often the most cost-effective method of shipping your products – provided you have enough to fill the entire truck. When you ship TL your freight goes straight to its destination via long haul. Unlike LTL shipments, TL shipments do not transfer to other trucks or stop at any terminals mid-haul.
• PTL – partial truckload
  If you do not have enough product to ship TL, PTL is the next step down. Similar to TL shipping, your products will typically stay on one truck from its pick up point to final destination – but is not accessible during the trip.
• LTL – less than truckload (or less than load)
  For many businesses small and large LTL transportation allows you to ship minimal quantities. But for this method to be effective for all parties, the load must consist of a minimum of 1-6 pallets or weigh under 4,000 pounds. When shipping LTL, your items are combined with shipments from other shippers, plus they may be transferred one or more times before they reach their final destination.
• STL – shared truckload
  The STL method of shipping is a hybrid whereby multiple shipments can be combined onto one truck moving in the same direction. This intent is to bypass the hub and spoke system thereby reducing the number of stops. This helps avoid damage caused through the extra handling of a shipper’s freight.

Typical Freight Acronyms

Once you have a freight quote form in front of you, you may find a number of unfamiliar associated acronyms. In order to communicate clearly and efficiently with your logistics partner, you’ll need to be familiar with these common terms plus a few more:

• FAK – Freight of all Kinds
  The term FAK is used to refer to a pooling of different products into one load for the purpose simplification of rating and pricing.
• BOL – Bill of Lading
  As one of the most important documents associated with moving your goods, a BOL is a detailed, legally binding contract between a shipper and a freight carrier. Every BOL includes details that define the names and addresses of the shipper and carrier, shipment description, packaging details, expected pickup date, freight class, and hazardous material designations.
• NMFC – National Motor Freight Classification
  NMFC is a series of classification codes assigned to commodities by the National Motor Freight Traffic Association (NMFTA). NMFTA created the National Motor Freight Classification tariff to help classify all commodities into 18 different freight classes determined by four factors; shipment density, stow-ability, handling, and liability.
• EDI – Electronic Data Interchange
  At the basic level, EDI is the business-to-business interconnection of computers for the rapid exchange of documents. In the freight shipping industry, this would be items like bills of lading, invoices and tracking information.
• FOB – Free on Board
  FOB is a term used to indicate when ownership and liability of goods is transferred from seller to buyer. When used with a physical location such as a shipping port, FOB specifies which party assumes responsibility for the payment of freight charges, and at what exact point title for the shipment passes from seller to the buyer.

• GVW – Gross Vehicle Weight
  Because weight is such an important factor in freight transportation, GVW is the term used to quantify the total weight of the transport vehicle and its cargo. Likewise, GVWR, or Gross Vehicle Weight Rating is often used to express the maximum operating weight of a vehicle as specified by the manufacturer.
• LG – Lift Gate
  A lift gate is a powered tailgate used to lift pallets from ground level to the same level of a truck trailer deck. Many LTL truck fleets have lift gates as do smaller shipper locations with no loading docks.
• DV – Declared Value
  Declared value refers to the monetary value of a shipment as reported by you, the shipper. Being an extremely important declaration, it serves as a disclosure used to determine shipping charges and as a tool to control carrier liability for damage and loss.

Other Terms Used in Freight Management

As the saying goes, “But wait, there’s more!”. The acronyms don’t stop there. Because documentation and performance are an important part of the evolving transportation and logistics industry, you could benefit from a little familiarity with them. Here are a few important terms worth knowing:

• POD – Proof of Delivery / Port of Discharge / Port of Destination
  Having a number of different meanings within the transportation industry, how this term is used depends on its context.
  The port of discharge or destination implies where the container is correspondingly loaded or unloaded from a vessel and picked up by the consignee.
  Proof of Delivery is the paperwork authorized by the consignee indicating the receipt of a load. In this context, a BOL can often double as a POD upon delivery and must be signed for the carrier to get paid.
• CNOR / CNEE – Consignor / Consignee
  More like contractions rather than acronyms, these are fairly straight forward: a CNOR or consigner is the entity sending a shipment, whereas a CNEE or consignee is the entity receiving a shipment.
• OS&D Report – Overage, Shortage, and Damage
  Mistakes and problems do happen therefor they must be accounted for. For instance, a CNEE can file an OS&D report if there are issues with a shipment they received. As implied, an overage occurs when the recipient gets more product than ordered, while a shortage is the opposite. Shipment items that are delivered unusable or unsellable are considered damaged.
• TONU – Truck Ordered but Not Used
  A common result of miscommunication (hence the need for this article) or happenstance, a truck arrives to pick up a shipment, but the load isn’t ready – that’s TONU. If it’s due to your error, you may find yourself having to pay a fine and compensate the carrier for misuse of their time and resources.

As you can see, it’s extremely important to be familiar with these terms and how they apply to your business. It would be wise to take a few minutes and learn them so you get accustomed to seeing and hearing them in context throughout your shipping processes.

What is the Difference Between Freight and Regular Package Shipping?

Are you shipping packages and parcels, light-weight items or heavier products?

Package and parcel delivery have a few discrete features different from freight shipping. Depending on what it is you need moved, either freight or regular package shipping may be better for you, but which one?

Learn about freight vs regular package shipping and see how a strategic LTL or FTL ally can help your goods move.

It’s common for small businesses that aren’t familiar with these types of services to get confused. Let’s consider freight and regular package shipping, and see what might work best for your business.

In the simplest term, freight shipping is useful when you’re shipping palletized items whereas package shipping might be useful when shipping one-off items.

Freight Shipping in a Nutshell:

• Larger loads, such as palettes of products that’ve been packaged together or wrapped as one or more.
• For a typical large haul trip, loads can range from weights between 5,000 to 70,000 lbs.
• It could take 1-3 days for a delivery to be made
• The truck can be larger than 58-feet
• Hundreds of miles can be covered in one trips
• Oversized loads such as heavy equipment can weigh well over 110,000 lbs.
• Usually making one trip, from point A to point B

When is Freight Shipping a Good Choice?

Freight shipping is the perfect choice when you’re moving larger loads than any other form of road transport can deliver. When you need a transport service that can ship multiple tons of product from one point to another ,either for a client or for your own business, then freight is the only realistic option.

You can deliver many of thousands of pounds to your own warehouse from your production facility. If for instance, you need to move a large quantity of inventory from one warehouse to another, this is by far the best option.

When you simply have too big a load to make with a small truck, larger trucks can be your saving grace. Another way to look at it is you have gone beyond the typical LTL service and into TL territory.

For another example, if you require moving of a large piece of machinery, rather than breaking it up into parts, a freight truck can lift the load all in one go to determine whether it needs to be.

Freight shipping is typically used by large businesses that need to move large quantities of products to their depots. Moving straight from their own manufacturing plants, they transport large amounts of product.

These items could be cars, food, raw materials, crude, etc, which is shipped to a depot. From there, smaller trucks then distribute the loads to businesses and or local storage facilities.

The Basics of Parcel and Package Shipping

• In terms of capacity, a package truck can have anywhere between 50-100 parcels depending on the average size.
• Individual package loads are typically less than 150 lbs.
• Small parcels and packages are the main contents of a package truck
• Trucks are usually no longer than 28-feet
• A package truck will make multiple stops throughout the day, as in a milk run, delivering orders to customers at their door.

When is Package and Parcel Shipping the Better Choice?

As mentioned above, package shipping is a shipment that is under 150 lbs. However, it can be considered light freight. Most package companies will consider it a larger package load.

Package shipping is mainly used for courier services. These are the many smaller delivery trucks you’ll see on virtually any street. Such vehicles are a medium to small van or truck, delivering products door to door.

Consider the kind of truck you see pull up to your home when you have ordered something from Amazon, this is package delivery.

Regular package shipping is also usually restricted to local areas. Therefore unlike freight hauling, the service is for a local area, such as a city, town, or rural zone.

Smaller parcel shipping should be reserved for businesses that are fulfilling product delivery to customers’ doors. However, the service can also be used to move inventory from warehouse to warehouse though usually reserved for a local area.

Still Need Help? Get a Hassle-Free Freight Quote Today

If you still have questions understanding the differences when it comes to freight and regular shipping, let an experienced partner handle your next freight shipment.

Brimich Logistics is an expert when it comes to 3PL and freight shipping. From small business to medium and large-sized business that require reliable large load shipping services, we have served our clients with pride, expertise and consistency.

Looking for a dependable partner to move your products? Brimich Logistics handles truckload and less than truckload shipping. Just let us know when and we’ll handle the rest.

Have you looked at your shipping processes in order to save money and control overhead? As a small business owner, there’s a chance you may be spending too much and not getting nearly enough in return.

Smart shipping management requires a basic understanding of industry terminology. The small investment in the time it takes to familiarize yourself with industry-specific jargon will pay dividends by reducing miscommunication.

If your company doesn’t have its own shipping department, you should be aware of shipping terms and conditions, especially before conducting direct imports. No one expects you to learn all the intricacies, but knowing the basics will keep you out of the dark, and out of trouble.

Therefor, here’s a quick reference sheet you can refer to to acquaint yourself with what may be some unfamiliar shipping terminology.

Shipping, Freight, and Logistics Terms

1. Accessorial Charge

   Additional fees charged for add-on services or equipment required for the delivery of your cargo.

2. Backhaul

   When a driver transports cargo during the return trip of a commercial vehicle, is known as a backhaul. This helps the cargo vehicle maximize their trips.

3. Bill of Lading

   A document issued by a carrier to a shipper, signed by the captain, agent, or owner of a vessel. Furnishing written evidence of receipt of the goods (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading.

4. Customs Broker

   An individual or firm licensed by, in this case by U.S. Customs & Border Protection, to act for importers in handling the sequence of custom formalities and other details essential to the legal and speedy exporting and importing of goods.

5. Carrier

   A legal entity or entitled individual in the business of transporting passengers or goods for hire. Shipping lines, airlines, trucking companies, and railroad companies are all carriers.

6. Container

   A single rigid, sealed, reusable metal box in which merchandise is shipped by vessel, truck or rail. Ocean shipping containers are generally 20, 40, 45 feet long. Ocean freight container types include: standard, high cube, hardtop, open top, flat, platform, insulated, refrigerated, etc.

7. Detention

   The process of holding a carrier’s driver and/or truck trailer beyond a certain stated period of “free time”, often resulting in the assessment of detention charges. The delay in clearing goods through customs resulting in storage and other charges. The prevention, by government authority, of a vessel and/or cargo leaving port.

8. Cartage and Drayage

   Cartage is the movement of goods for short distances, usually by truck. It is also referred to the charge to pick up, move and deliver good short distances.
   Drayage is the charge made for hauling freight or carts, drays or trucks.

9. Freight Forwarder

   A person engaged in the business of assembling, collection, consolidating, shipping and distributing less-than-carload or less-than-truckload freight. Additionally, a person acting as agent in the trans-shipping of freight to or from foreign countries and the clearing of freight through customs. Often including full preparation of documents, arranging for shipping, warehousing, delivery and export clearance.

10. Hazmat

    Short for “hazardous materials”, which essentially is any material that could cause potential harm to anything or anyone it comes into contact with. Special endorsements are needed from all parties involved to legally transport hazardous materials.

11. Incoterms

    Short for International Commercial Terms, which are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). Incoterm define basic shipping terms.

12. Intermodal

    Cargo that is shipped using multiple forms of transportation, such as rail transport and cargo trucks.

13. Lane

    A regular route of transportation taken most often by commercial transporters.

14. LTL (Less Than Truckload)

    A shipment weighing less than the weight required for the application of the truckload rate. These smaller shipments are often combined to create full truckloads.

15. Lift gate

    A mechanism on the back of cargo trucks that allows the driver to load and unload goods more easily. A lift gate is usually required for shipments picked up or delivered to a destination with no shipping dock.

16. Parcel Service Failure

    When you order an item from a retailer, you’re effectively creating a contract between the two of you, even if it’s not written down. If your parcel is late you may opt to contact the courier first, even though it’s the retailer you will need to deal with in order to get compensation. Alternatively, there is a parcel failure refund service, which identifies late or lost deliveries and guarantees your shipment will arrive or be refunded to you no matter what happens.

17. Reefer

    A temperature controlled container that keeps cargo such as food at the proper temperature throughout the transportation process.

18. Shipper’s Agent

    A shipper’s agent is not a carrier, freight forwarder or broker. Shipper’s agents generally arrange for truckload or container load shipment transportation. Shipper’s agents commonly provide services related to warehousing or loading and unloading.

19. Tariff

    A Tariff is a document setting forth applicable rules, rates and charges (often in the form of additional taxation) to move goods. A tariff sets forth a contract for the shipper, the consignee, and the carrier

20. Tender

    A fixed price offered to move cargo.

21. Third-Party Logistics (3PL)

    A term used when distribution services are outsourced through a third-party. Brimich Logistics may be considered a third-party global logistics company.

22. Transportation Management System

    Often abbreviated to TMS, this is specific software that allows freight forwarders to easily analyze and automate transportation operations. It’s especially beneficial for companies handling large amounts of commercial cargo.

23. Truckload (TL)

    Large-volume shipment from a single customer that weighs more than 10,000 pounds or takes up a complete trailer space so no other shipment can be loaded.

The Benefits of Working With a Freight Broker

For a small business, a freight broker can eliminate a lot of the anxiety surrounding freight shipping.  Therefor it’s helpful to have a good handle on basic terminology.

Speaking the same language will ensure clear communication and hopefully as mentioned, prevent misunderstandings.

If you’re a small business producing goods of any size, “Less Than Truckload” (LTL) and “Full Truckload” (TL or FTL) are shipping terms you should become very familiar with.

The benefits of Less Than Truckload (LTL)

Less than truckload, or LTL, is ideal for companies who have smaller shipping needs. Generally, LTL loads will end up being between 100 pounds or 45 kilos (the limit for most parcel carriers) and 10,000 pounds or 4,500 kilos per load – when a full truckload is more appropriate.

For efficiency, the shipping company will combine or consolidate shipments from various businesses to fill a single trailer. In practice several LTL shipments are often combined into one truck to fill it as close to capacity as possible.

As the space is allotted, this means you only pay your fraction of the cost of the truckload. As a simple example, if your shipment fills one-quarter of the truck by volume, then that’s all you pay for. This of course ignores weight considerations.

There’s also the added flexibility small and midsize companies can benefit from with LTL shipping.

Depending need, daily, weekly or monthly orders can be scaled up or down. Regardless of frequency, goods should be well-packaged and consolidated as they will likely be handled more than once along their LTL transportation journey.

The Benefits of Full Truckload (FTL or TL)

Truckload shipping, or full truckload, is best for businesses that have high volume shipping needs, or require expedited delivery. This method is faster and more direct with no need for multiple stops.

TL means that all of your products are delivered together so you have the advantage in knowing that there is little chance of delay or damage. LTL freight transport by comparison requires more destination stops and pick-up locations.

When a large amount of goods are being shipped, TL shipping is definitely the more economic method.

Regardless of the method, a good reliable logistics partner will be familiar with the intricacies of moving, and being accountable for your goods.

Making the Most of Your Options: LTL vs FTL

One standard measure of footprint is by pallet. If you’re shipping more than 12 pallets at a time, then the full truckload option would be best for you.

Or if your product is fragile and it’s imperative you avoid excessive loading and unloading, the full truckload option is again the best for you as these products are the only items within that truck.

If you have hard deadlines or time-sensitive delivery dates, you absolutely want the full truckload option.

With anything less than 12 pallets you’ll experience better cost savings using the LTL method. These smaller load sizes and / or broader delivery times are also a good fit for LTL.

Once again, as a manufacturer your products must be packaged in such a way as to deal with the rigours of shipping and handling in general.

How to Work with a 3PL for LTL and TL Freight Shipments

Knowing the subtleties of freight management that fits your business best is what a good 3PL company is all about.

They’ll take the edge off of the complications of LTL and LT transport for you. They’ll understand time-sensitive needs, special requirements, and provide competitive rates.

Because the transportation is very competitive, it is possible to find all of the above combined with top-notch service – which is definitely to your advantage.

LTL and TL Expertise

Freight shipping is often a core competency of 3PL providers, including both LTL and FTL. Their experience helps them evaluate your shipping needs, choose the most efficient option, and anticipate potential risks or higher costs.

Cost Savings

A smaller transport company may only ship a few pallets a month to a smaller region, whereas a 3PL will regularly ship significantly higher volumes across the whole country or internationally.

This gives a 3PL company leverage when negotiating cost-effective rates with freight carriers which in turn, can be passed on to you.

Visibility and Transparency

Knowing what’s happening with your freight at any given point in time is crucial for any business.

A good 3PL provider will have a team of professionals providing the highest level of service, including detailed updates from your shipment’s inception to when it  reaches its endpoint.

Contact Brimich For All Your LTL and FTL Needs

Both LTL and FTL shipping methods can be used in a variety of situations. These include local and regional shipping, or product transportation between plants and warehouses.

Working with a trusted logistics partner like Brimich offers the advantage of multi-mode transportation services using an extensive network of affiliated asset-based providers.

Contact Brimich for a quote, availability and further information.