Domestic Offshore Shipping: 3 Helpful Tips to Improve Performance
Posted by Bill Hale on Tue, Feb 14, 2012 @ 02:47 PM
Marine transportation is not only a method of reducing logistics spend, but also carbon emissions. According to a study conducted by Martin Associates, it’s estimated that maritime shipments save companies approximately $3.6 billion/year, as compared to land alternatives. Furthermore, in an era where companies seek to differentiate themselves by means of green initiatives, quantifiable emission reductions can provide companies with a concrete example of reducing their carbon footprint.
In a shipping environment of volatile rates, capacity concerns, and limited alternatives, offshore shipping can pose a difficult challenge for many supply chains. Whether shipping to Alaska, Hawaii, or Puerto Rico, there are, however, some key considerations to maintain margins and ensure a seamless delivery.
1. Dimensions Are Key
Container and pallet dimensions are critical when shipping offshore. These shipments are rated based upon both weight and cubic measurement. Be prepared to have the bill of lading handy - including information about the shipment content, cubic dimensions, origin and destination zip-codes, and special delivery needs (lift gate, white glove, residential delivery, etc.)
Cubic-ft Conversion: Multiply length by width by height (in inches) and divide the total number by 1,728 (cubic inches/cubic foot). Solution is the volume in cubic feet.
2. Know Sailing Schedules and Customs Requirements
Pay particular attention to sailing/delivery schedules to ensure on-time performance. Develop a contingency plan with your partner - in the case of acclimate weather, construction, or need for expedited delivery.
Differentiate between Freight Terms and Payment Terms. Steamship operators are limited to a liability of no more than $500.00 due to Maritime Laws. Consider purchasing optional insurance for high-end items to mitigate handling and transit risks.
From a compliance standpoint, understand Customs and Border Protection security requirements. For shipments to Puerto Rico, in particular, remember to file a Shipper’s Export Declaration (SED) utilizing the U.S. Custom’s Automated Export System (AES) for product values exceeding $2,500. Failure to do so will cause shipment delays.
http://www.cbp.gov/xp/cgov/trade/automated/aes/
3. Find a Trusted Partner
Last-mile logistics is critical for off-shore shipments, and shouldn’t be treated as an afterthought. Partner with a transportation provider that maintains a local presence to not only limit the number of hand-offs, but also streamline the delivery process. Furthermore, ensure that your partner has the visibility tools to monitor shipment status, and can customize their supply chain and logistics services to your needs.
