Tuesday, 24 November 2009

The Freight Transport Infrastructure in Germany

Germany has a transport infrastructure that is the envy of the world and this has helped enable the development of a highly effective freight services industry. The phrase 'Germanic' is often used as a byword for efficiency and with good reason, if the freight services industry in Germany is seen as a measure.

The efficiency of the transport network throughout the country is all the more remarkable when you consider that it is less than twenty years since the Berlin Wall came down and East Germany started its process of integration within Germany.

Since the reunification of Germany in 1990, there has been a program of extensive development throughout Eastern Germany to bring the freight transport infrastructure up to the same standard as the more developed west Germany.

This program has been highly successful and the freight transport infrastructure in Germany is now amongst the best in the world, with every mode of transport fully maximized. The speed of development following reunification has presented a challenge for freight forwarders as they have kept up to date with the evolving transport infrastructure, that has increased the options to be considered by the shipping company or freight company.

There is a very efficient network of waterways, railways and motorways that make internal connections fast and straightforward and also connect Germany with other countries throughout the world. This has been a spur to economic activity, as access to markets is fully facilitated.

The road network is particularly impressive in Germany, with the Autobahn world famous for its outstanding efficiency and speed. There are over 650,000 kilometers of paved roads in Germany, which includes over 11,000 miles of expressways. There are no speed limits on some roads, meaning that freight forwarding by road can be a particularly effective option. The roads also tend to be free of traffic jams, as the German public are very keen on public transport and also make above average use of travel by bicycle, thus helping reduce overall traffic congestion. This has a positive impact on the freight services industry, meaning that journey times and costs can be accurately predicted and that risk is minimized.

As well as the excellent roads, there is also an impressive rail system in Germany. There are over 40,000 kilometers of railroads, which are run by the national railroad carrier, Deutsche Bahn AG. Deutsche Bahn AG was privatized in 1994 although it still received subsidies from the government, reflecting the government's prioritization of the country's transport infrastructure.

Lufthansa, the flagship air carrier in Germany is one of the leading airlines in the world. Since the liberalization of air transport in the European Union in 1997, Lufthansa has fought hard to retain its dominant position in Germany's internal routes, in the face of burgeoning competition from low cost carriers and others.

There are no less than 320 airports in Germany, including 14 with runways over 3 km. There are over half a million departures from airports in Germany every year. The busiest airport in terms of passenger services and freight forwarding is the Rhein-Main airport at Frankfurt am Main. Cologne-Bonn is the second biggest in terms of freight transport. The other most important airports for international freight are Berlin-Tegel, Dusseldorf and Hamburg. The federal government and cities such as Berlin and Cologne are preparing to sell their shares in major airports.

With such an extensive airport network, freight forwarding by air is extremely efficient in Germany and the freight services provider will fully consider all the available options when designing the best freight forwarding solution for a client.

Marine transport is also very developed, with major ports in the Baltic Sea including Kiel, Rostock and Luebeck, and also on the North Sea, including Hamburg, Bremen, Emden and Bremerhaven.

There are also many major river ports. The most notable are at Bonn, Cologne, Duisberg, Mannheim and Karlsruhe on the Rhein; Magdeburg and Dresden on the Elbe and Kiel on the Kiel Canal. The Kiel canal is an important strategic transport link, connecting the North Sea and the Baltic Sea.

The most important port for Germany is actually not in Germany at all - it is Rotterdam in the Netherlands. Meanwhile, Hamburg is the largest port within Germany, accounting for about a third of all the international freight.

The amount of freight shipped through German ports is very high, at over 200 million tonnes a year.

The integrated and comprehensive transport infrastructure is a model of efficiency, meaning that shipping companies can provide streamlined and cost-effective freight services for their clients.

Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Germany.

Understanding Direct Freight Management

Dependable, timely, and direct transportation is at the heart of the success of many different kinds of businesses, from commercial and retail to industrial and manufacturing. Understanding freight management, which is the ensurement of this transportation, can be a key to the efficient conduct of your business. An important decision to make at the outset is whether you want to deal with the hassle of managing your business's direct freight needs on your own, or whether your needs can be met by a client-based freight company.

There are a variety of experienced companies and agencies that coordinate direct freight for business clients. Building a long-term relationship with a good direct freight company will help solve many of the managerial and logistical difficulties that arise from trying to juggle freight management on your own. Such companies are in a position to offer to their clients a variety of assets gained from experience and expertise in the field of freight using up to date logistics management software.

Management of direct freight can be a confusing proposition, with so many variables to keep track of in a variety of times and locations. Freight management involves making sound business decisions from a multitude of often-confusing options and time schedules. Transferring these decisions to an agency that specializes in them can relieve clients of the burdens of shipment-tracking, contact maintenance, and matching drivers and destinations.

Freight management companies can offer their clients a variety of services. Most have freight quotes immediately available on their web sites, a valuable tool for comparing prices and services. Experienced personnel will deal with your questions and requests. Account managers for the companies stay in direct contact with the drivers, and time-stamping is used for record-keeping and tracking of shipments. The best way to get the best rates in shipping freight is logistics management software.

A variety of shipment options are available for direct freight needs. Depending on the needs and schedules of the client, next-day delivery can often be guaranteed by the direct freight provider. A good direct freight company will be bonded and insured, work with trusted carriers, offer reasonable freight quotes, and negotiate fair prices for their clients.

Many freight companies offer overseas shipping, by air or ocean, for international businesses. They employ meticulous direct freight management plans that ensure the security of your shipment from loading to destination, coordinating every aspect of the shipping process. Access to intermodal transportation, which is the combination of modes of transportation such as planes, boats, and trucks, is another convenience for businesses and customers. Many companies also offer continuously-refreshed online load boards to assist customers in direct freight management.

Successful management of the direct freight needs of your business can be a cornerstone to your success in building your business and reliably meeting the needs of your customer. The best starting point is a complete understanding of the major elements and benefits of a dependable freight management system and logistics management software. Once you understand the foundations, you can put the pieces in place and start guaranteeing your partners and customers the timely and reliable service that ensures success.

If there was logistics management software out there that could help a business maintain and manage the company down to the smallest detail, whether you're a large company or small company thus saving lots of money and time, I am sure you would want to know about it. RateLinx has the solutions and the direct freight management you need to help your business grow.

Freight Broker Or Freight Broker Training - Yes Or No?

Starting a new freight brokerage business automatically brings skepticism. When you start cold calling, don't be surprised if you get 50 "no" answers before you get 1 "yes" answer. Why? Freight Brokers have not had a very good reputation for quite a few years now. Thus, making it even harder for a new freight broker to get started or become well established. Can it be done? Yes. Is it going to be easy? No. By now you are probably wondering why a freight broker will get 50 "no's" before getting 1 "yes." Bad business practices. How?

There were and are a lot of freight brokers out there that will take the money and run. Meaning? The freight broker decides to take a load from the shipper, then he contracts it to a carrier, collects the monies in due time but then he never pays the carrier. This can become quite profitable in the 30-120 days it takes for the circle to be completed. By then, the freight brokerage office has closed down, taken the profits, paid another surety bond, and opened a new freight brokerage in another name. Thereby starting the process all over again. Is it legal? No. But anybody can go out of business, and any company can close down, so most of the time they get away with it. While this is a scary thought, new freight broker companies should be aware of why they get more "no's" than "yes's" And how they can help overcome a lot of the skepticism. Yes, you can be honest. Yes, you can have integrity.

Yes, you can provide excellent customer service. Yes, you can keep up with the FMCSA. And as it stands now, every freight brokerage must have a Surety Bond in place. But hopefully in the near future, the cost of the Surety Bond will be raised in order to help weed out a lot of those who make a habit of doing this type of business. And this is not all that they have done to tarnish a freight brokers' reputation. A lot of freight brokers out there still make a living by ripping off the truck. What does this mean? They keep monies that should go to the truck but does not because the freight broker lies. The freight broker lies? Yes. Should you lie? No. How do they lie? When they tell the truck the extra fees that are sometimes required aren't payable, when in fact they were paid to the freight broker.

Only the freight broker did not pass them on to the truck, he pocketed them. Do things like this really happen? Yes. Should they happen? No. Sad but true, these are some of the obstacles a new freight broker has to overcome. But now you know some of the reasons why a new freight broker might get 50 "no" answers before he gets 1 "yes."

Freight Broker Training is essential for any newbie entrepenuer.

http://www.webseospecialistinnyc.com/

Freight Forwarding

Freight Forwarding

Freight forwarding is an essential contributor to the smooth running of international trade with the freight forwarder being responsible for choosing the best options for their customers' distribution needs.

In this article we’ll discuss the freight forwarding industry and show how it is the unsung hero of the world trade.

What Is Freight Forwarding

Freight forwarding is all about moving goods from one part of the world to another economically and efficiently. Ensuring that cargo arrives at the right place and at the right time involves real skill.

Please click here for freight forwarding quotes and advice

Freight Forwarding Costs

It is important for freight forwarders to negotiate freight rates regularly with transport providers and to compare the costs involved with transporting goods along different routes. This helps them to get the right balance between cost and delivery times.

Although freight forwarding is used by companies all over the world, no two operations are the same owing to the type of goods being transported and the different sets of customer requirements.

Managing Freight Forwarding Risks

The complexity involved in freight forwarding means that there is an element of risk to do with loss or damage that needs to be managed.

Freight Forwarding Transaction Management

Freight forwarders are entrusted with the delivery of goods from one party to another, who often do not know each other. As a result, it is essential that the freight forwarder follows the set procedure and prepares accurate documentation to facilitate the transaction process.

Outsourcing Freight Forwarding

It is becoming increasingly common for companies to outsource certain parts of their business, and the outsourcing of freight forwarding is a prime example of this trend. By forwarding cargo on time and to the right place, freight forwarders are able to make a real contribution to developing the global marketplace.

Steve Hoy works for GBS Freight Services Limited which is an independent UK based freight forwarding & logistics organisation

Freight Forwarders Face New Challenges

With increases in fuel prices and a slowing economy worldwide, the international freight industry faces new challenges.

So what are the trends we are seeing in the international freight market and how will they affect the customer?

The global freight forwarding market stood at 116.8 billion Euros in 2007, growing by just under 11%.

This was the lowest level of growth seen by the international freight market for four years. The slowdown was caused mainly by the impact of the weak economy in the US on the freight market but, with the European economy now also showing signs of trouble, growth in freight is expected to slow still further this year and next.

The credit crunch has had a big impact on China import to the US, a freight market which had previously been flying high. Although this decline in freight was offset a little by an increase in US exports caused by the weakness of the dollar, shipping companies are now thinking about how best to weather stormy market conditions ahead.

The good news is that as they are asset light, freight companies are better placed than some to ride out the coming recession and forwarders are in one of the strongest positions in the freight industry. So it is from the freight companies that customers can expect to see most innovation in the international freight industry in the next year or two.

International freight customers can expect to see some big changes on the horizon.

We can expect to see migration of some air freight traffic to the cheaper option of shipping by sea, as many customers decide to make savings in this way.

This is likely to be accompanied by less growth in the 'express' sector of the international freight market as some customers opt to compromise speed in freight for cost savings.

We are also likely to see more mergers and amalgamations between international freight companies as freight companies look to increase profitability through building economies of scale.

Inevitably, some weaker freight companies will go to the wall as the tough trading conditions define the winners and the losers in the international freight market. But the stronger freight forwarding companies will become still stronger as they continue to innovate to address the market challenges.

Some question marks hang over the China import market as labour costs in China spiral and it becomes more costly as a manufacturer. For example, Asda has said recently that they may shift some of their sourcing to Vietnam as the benefits of China import are being eroded by rising labour and suppliers' costs, and more supermarkets are expected to follow suit. However, despite this, China import and trade with Asia will continue to be the rising star of the international freight market and profits from Asian freight forwarding will help freight companies invest in new customer services.

Increased competition between freight forwarding companies is likely to lead to new product development as freight forwarders add on more value-added services to differentiate themselves from the shipping company down the road.

There is also likely to be an increasing focus on improving customer service.

What's more, the freight forwarding industry will see more use of IT to automate processes and reduce costs. This will be good news for customers as it means more transparency in the international freight industry. Increased use of technology will improve communications between shipping companies, customers and the end recipients, providing a better service all round. Integrated IT will also be used to increase customer choice in international freight - for example, between 'green' options for freight forwarding as an alternative to the fastest freight transport options.

And lastly, excess shipping capacity leading to cheaper freight rates will be a help to freight forwarders, with the customer again being the ultimate winner as competition in the international freight market hots up in the year ahead.

Stephen Willis is Managing Director of RW Freight Services, a UK based freight company, established in 1971 and operating worldwide freight services.

http://www.rwfreight.co.uk

Saturday, 21 November 2009

Air Freight Carriers - What Do They Do?

Air freight carriers are companies or airlines which are used to ship goods over long distances in a short amount of time. Freight carriers may be part of a passenger airline or dedicated a dedicated cargo airline. Such Freight carriers may also be dedicated transportation logistics companies like Fed-Ex who have a cargo airline and a business and logistics system to support end to end delivery as well.

Air freight or cargo airlines

Cargo/ air freight is a service used by many companies all over the world everyday for multinational import and export. Air freight services are professional logistics support businesses which manage the handling and transportation of goods and raw material. Today, airfreight businesses handle any kind of shipment, domestic or international, to any destination anywhere in the world provided there are no legal barriers to the transportation of the goods in question.

Modern airfreight services provide customs support (clearance agents all over the world) for the quick clearance of goods while also combining other transportation methods (like trucks or cargo ships) for end to end delivery in order to combine services and cut costs all round for themselves and therefore for their clients. Many such cargo carrying companies also provide the option for expedited shipment (express delivery) to most parts of the world.

There are three forms of air cargo transportation. Passenger airline freight (smaller goods carried on commercial passenger flights), dedicated cargo airlines using cargo planes, and super cargo planes used for specialized transportation (for instance machinery, other aircraft and any other such heavy goods).

Air freight transportation companies use a variety of aircraft, depending upon the goods, the quantity (or weight) and the destination. Commonly used aircraft may include ATRs, Boeing 707, 747-200F & 727, Douglas DC-8, DC-10, MD-11, Ilyushin Il-76 and even some 60-year-old Douglas DC-3s. The largest built cargo planes in use today are the USAF's C-5 Galaxy and the Russian Antonov AN-225.

Freight forwarding services

Freight forwarding companies; act as intermediaries between clients who wish to ship goods and transportation companies who actually transport the goods; these companies usually have a vast list of transportation services with home they have established business relationships and as third-party logistics companies, provide clients the benefits of their expertise in handling all transportation related issues.

International shipments from one destination to another usually involve using a system of multiple carriers and attention to transportation requirements and legalities (bills or lading, customs documentation, clearance and insurance). A freight forwarding service handles these details for their clients, managing the entire logistics of a shipment, relieving a burden that would otherwise be handled by the business/ producer making the shipment.

These companies guarantee the delivery of the product to a destination by the contracted (agreed upon) delivery date, and negotiate the best price to move the goods via the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability; often providing their clients with options on various packages which might best suit their needs accordingly.

About Author:

Allen is a staff writer for Allegro Freight Services. Allegro Freight is one of the largest shipping companies worldwide, focusing in ocean freight, air freight and trucking freight with worldwide offices in many countries.



How to Make Business Negotiations in China More Successful - Part Three - Common Discussion Points

When visiting your suppliers' offices the meeting normally is held in their showroom. Taking a close look at their presentation and product displays should give you a pretty good idea how well or poorly that company is organized.

Ugly, untidy, and dirty showrooms do not reflect well on the supplier's diligence. However, that impression may deceive you because your supplier may still live up to your expectations.

I have found that at least 50% of most supplier's showrooms in Hong Kong look like a garbage dump and you might be too scared to work with these suppliers. Rest assured that you can work with these suppliers but you need to take some precautions. If you follow my checklist and receive satisfactory answers from your suppliers, you may still want to give your new supplier a try.

It is all about competence and if you have the impression that your new supplier has enough of it, go ahead and make his day.

Effective Questions for the Supplier

Which questions should you ask during your meetings with each of your suppliers? You want to ask at least the following questions:

  • What is your Fob price in US$?
  • What is your usual port of loading? They can sometimes offer you a choice of several ports.
  • Do they have their own factory, what is the name, and where is it located?
  • When was the company established?
  • Who are the owners?
  • How many production lines do you have?
  • How many workers does your factory have?
  • What are your main export markets? If the answer is Europe, your next question should be: Which countries there?
  • Who are your main customers? Of course you are mainly interested in customers from your country but it would be interesting to know if large companies like Wal*Mart or Carrefour are buying from them.
  • What is your delivery time during normal season and peak season?
  • Are you subcontracting part of your production and if so which parts?
  • Does your factory have their own injection machines?
  • Is your factory ISO 9000 approved?
  • In the event the quantity from your shopping list is not sufficient: What is your minimum order quantity per product?
  • Which laboratory are you using for your approvals?
  • What approvals does your company already have?
  • Which certificates have been obtained?
  • What new products do you have that are not on display?
  • When can I see sketches, drawings, or photos of these new products?
  • Can you please e-mail me your bank details? You will need this to pay the sample cost when you order product samples

Here is more detail about what should be discussed based on the previous questions:

Delivery Time and Order Backlog

You need to ask the factory management about their delivery time during the low and peak season so that you have information about how long it will take for your goods to ship. This is also important to understanding the lead time needed when placing purchase orders.

Something else that needs to be asked is their current order backlog. This indicates how well the factory is doing. If they do not have many orders, there may be a reason for it, which can be important in your decision making. If the factory won't talk about low order backlog, there is a chance that their competitor knows which proves one more time how important it is to visit the factories in person.

Port of Loading

Since factories sometimes can use different ports of loading, you need to inquire which one is usually used because the applicable freight charges will apply and you need that information to properly calculate your landed cost. Some ports have only one vessel departing per week and you must know this in advance when planning tightly scheduled shipments.

Closest International Airport

I want to mention that some products can only be shipped by airfreight. Notebook computers and MP3 players are typical examples. The key components of these products are ICs that constantly fluctuate in price. At present, the prices are in constant decline. Buyers need to receive their goods within a short time or they will not be able to make a profit. The price they need to charge will be higher then the price being charged for goods that were air shipped. That makes air shipment unavoidable.

Banking Details

When discussing the payment terms with factory management, ask them for their banking details, which will allow you to do a background check before placing your orders with them.

Payment Terms

Finally, you need to negotiate the payment terms, which are usually by irrevocable letter of credit at sight (L/C). This is usually the safest way to pay the factory and also allows them to obtain loans from their bank to start the production on time.

Never ever let the factory convince you to remit a down payment of let's say 20 or 30% of the total order value by T/T to enable them to start your production. Ask yourself why are they asking for this? There is only one reason, which is that the factory has no money and obviously no other orders. They want to jumpstart production with your cash. If something goes wrong and the likelihood is rather great something will, you lose your money and never receive a shipment.

If the staff member you are meeting with can answer most of these questions, you can be relatively sure that it is not a trading company. Even if they pretend that they have several factories working for them, they are not likely to know all these details.

I should point out that you should have already disclosed the content of your shopping list before asking all of these questions.

About Your Shopping List

Here is the information your shopping list should include. It needs to include all of the products that you want to source. Your specific requirements may go beyond this basic list:

  • Product description
  • Target Fob price in US$
  • Quantity of the first shipment
  • If possible an estimate of your yearly quantities
  • Requested earliest delivery date
  • Destination port
  • Packaging information if other than standard
  • Number of samples needed

It is not wise to inform all suppliers about your target price right away. You could end up with prices matching your target price but you may have actually been able to negotiate a lower price.

On the other hand, inform your supplier of your target price if they quote a price that is not even close to what you want to pay.

It is essential to provide your company's specifications before asking for price quotes. Of course, you can play the hide and seek game by not disclosing your requirements to the supplier. The big disadvantage with this is that you will be drawn into lengthy negotiations later because the supplier will tell you that his price was based on his own standard and everything above that must be added to the originally quoted price. There can be no doubt that the supplier is right.

I believe it is part of fair play to fully disclose your requirements up front. To do anything less may force your supplier to lower the product quality by using cheaper materials in order to obtain the purchase order.

Klaus-Dieter Hanke is a professional exporter/importer for more than 2 decades. He is the author of a successful eight ebook series "Importing from China".
His company WebMediaBiz provides consultancy services to worldwide importers.
Claim his free eBook "7 Tips to more Successfully Import from China" from his website ==> http://www.webmediabiz.com now.

Using a Freight Forwarder - Why Their Contractual Liability is Limited

I have explained in an earlier article that a freight forwarder or shipping company is in a privileged position; if the shipper's goods are proven to be lost or damaged in transit, the carrier does not have to compensate for the full value of the goods.

There are historical reasons for this. One of them is that the small islands of the United Kingdom have for centuries been dependent on international trade for wealth creation and for providing raw materials for industry, and foods which could not be grown in a temperate climate. This meant that merchants and ship owners were often influential and wealthy men, who were able to influence government policy.

In 1786, a group of ship owners presented a petition to Parliament, as they were worried that the size of claims against them for lost or damaged goods would be sufficient to put them out of business. The government passed the Merchant Shipping Act, which limited the owners' liability to the value of the vessel and its equipment, plus any freight due for the voyage.

Since then, methods of moving freight have changed considerably; containerization means that goods are more difficult to steal, and modern ships are less likely to sink. Freight on international journeys can travel long distances by road, and airfreight carries goods at a speed those eighteenth century ship owners could never have imagined.

However, the concept of limiting liability for loss had been established, and since then has been developed to encompass all the modern transport methods.

Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services

Gross Weight? Tare Weight? Wait! Which Weight?

Gross Weight

A basic tenet of shipping is that freight is rated on its gross weight. Gross weight is simply the weight of the product and its packaging. For example, the glass vase, packing peanuts, carton, sealing tape and label combine to make the gross weight.

Even when you attach your freight to skids or pallets for ease of handling, pallet weight (which can be considerable as anyone who has tossed them around a dock will testify) must be included in the gross weight.

Net Weight

The weight of the product itself without packaging. (The vase by itself.) Net weight is rarely a factor in shipping unless a carton is overpacked and splits open. (Check the seal on the bottom of a standard shipping carton for the maximum weight the carton will hold safely.)

Tare Weight

Tare weight is the weight of an empty vehicle or container. Normally not something that a shipper is concerned with but it's a term everyone should know.

Volumetric Weight - Air freight

International airfreight shipments are usually rated per pound or per kilogram. However, what the airlines are really selling is space aboard the aircraft. Therefore, they have a volumetric equivalent for shippers of lightweight articles. Consider how much space 100 kgs of ping pong balls would consume vs. 100 kgs of anvils. International air shipments are figured on both the actual gross weight and volumetric weight and rated at the higher of the two. To determine volumetric weight for air:

Multiply length x width x height in inches and divide by 366. The result is the volumetric in kilograms.

Example: 20" x 20" x40" = 16,000 cu. inches

Divided by 366 = 43.7 (round up to 44 kilograms)

If the gross weight of the shipment is 35 kilograms, it would be rated on the volumetric 44 kilograms. If the actual gross weight is 50 kilograms, it would be rated at 50 kgs.

Weight/Measure ' Sea Freight

Many sea freight shipments are rated on a Full Containerload (FCL) basis. However, Less-than-Containerload (LCL) and the occasional FCL shipment are rated on a metric "Weight/Measure" in most trades. This formula is based on 1 cubic meter (35.3147 cubic feet) versus 1,000 kilograms (2,204.6 pounds), whichever yields the greater revenue to the carrier. Let me save you some time. Unless your shipment is extremely dense, it's going to go on Measure. I've shipped tractor parts that went on Measure. Weight basis shipments are rare.

Trucking Density Rates

Motor carriers also sell space on their trailer, even though the rates are on a weight basis. Domestic LTL (less-than-truckload) rates are usually charged per one hundred pounds ("cwt"). However, think of those ping pong balls again. Many trucking rates factor in density. Plastic items and commodities of a similar nature have tiered rates that are based upon the density of the product. The tariff may read something along the lines of:

Plastic Items NOIBN (not otherwise indexed by number) Density under 10 pounds per cubic foot

Rate $10.00/ cwt.

Plastic Items NOIBN Density 10 to 20 pounds per cubic foot, Rate $8.50/ cwt

The difference between motor carrier density rates versus air or sea volumetric rates is that the motor carrier density rates apply only to select commodities. They're universal in air and sea shipments.

GROSS MEASUREMENT

For air and sea freight, the LxWxH measurements are stretched to the farthest point. For example, an automobile length would stretch bumper tip to bumper tip. Therefore it's advisable, whenever possible, to "square off" the package. Say you're shipping a stove with a chimney attachment. Remove the chimney before shipping and lay it flat alongside or inside the stove. If you are shipping an automobile, remove the radio antenna.

http://Howtoshipanything.com is and online resource dedicated to help you ship both domestically and internationally. W.E. Reinka, an international shipping consultant, may be reached at [http://www.howtoshipanything.com/w-e-reinka/]

How To Calculate Cubic Metres (CBM) When Shipping

Determining Cubic Metres or CBM is the first step you should take in determining how to ship your cargo. You don't want to be shipping FCL cargo as FCL Groupage cargo nor do you want to be shipping FCL Groupage Cargo as FCL, unless obviously you have reached or exceeded the break-even point of your cargo which I teach in the section FCL vs FCL Groupage.

The CBM of a consignment is always calculated

L x W x H

e.g. 3,20 x 2,45 x 1,56

= 12,23CBM

For Seafreight shipments, the idea is to calculate CBM in metres. If you have 320cm's
then convert it to 3,2metres before starting the calculation.
If you have 45cm's then your formula will have 0,45metres.

A 20ft General Purpose or dry container will pack a maximum of 33,2CBM whilst a 40ft General Purpose or dry container will pack 67,7CBM.

A 40ft High Cube which will allow you more space to pack and will pack a maximum of 76,3CBM.
All of the above are subject to your line of commodity and how it is packed.

40ft General Purpose containers and High Cube containers are only to be used for larger volume cargo and not larger weight cargo. In my article on cargo weights and road weight limitations, I discuss this point further.

Also to bear in mind is the length of your cargo, you can't pack 13 metre steel pipes in a 40ft General Purpose container as it is only 12,036metres in lenght. The proper equipment will be required in this case.

For airfreight shipments, the method that the airline industry uses is the
Volume / Weight.

If you have 5 boxes that identical in size that are 23cmx34cmx56cm (LxBxH)
Presume that the actual weight of each of the 5 boxes is 10kgs.

What you will have to do first is separate the Volumetric from the Actual Weight.

Volumetric Weight Actual Weight
(23x34x56) div 6000 10kgs per box
= 43792 div 6000
= 7,30kgs per box

For 5 boxes : 7,30 x 5 For 5 boxes : 10 x 5

=36,5kgs =50kgs

The true weight needed to be declared to the airline here will be the actual weight
of the boxes of 50kgs.

Note: Airfreight is calculated in cm's not in metres as in seafreight.

Volumetric weight must be calculated by dividing by a denominator of 6000 in your formula when calculating cubic centimetres (cm) or dividing by 166 when calculating cubic inches (ins)

Make sure that your cargo can fit through the airline's loading doors.

Friday, 20 November 2009

Infrastructure Is In Demand Globally

Ships, planes and railroads don’t have enough capacity; this is why global transportation is one of our main themes. We continue to believe that global transportation vehicles and their suppliers are good investments.

Air Cargo-Guest Commentary by David Hendershott

Traditionally a lot of air cargo planes were older passenger planes converted to cargo planes. Conversions are still done, but the supply of older planes has dried up for now, and the need for fuel efficiency is making conversions a lot less attractive than it used to be. Because of the urgent need for freighters, even the inefficient older planes are converted as fast as they become available. Boeing entered the conversion business last year. Even with the high fuel costs, airfreight is far more efficient than maritime shipping for the timely delivery of high value, low weight or perishable items such as electronics, food and apparel directly to their destinations. The biggest market for new aircraft is in the long haul segment.

In reality it's not just the air cargo system that is straining it’s capacity. The maritime shipping industry doesn't have enough ships. The ports are operating at nearly full capacity, or more in some cases. The rail systems are proving inadequate even in the U.S. There was an article in the WSJ on Wednesday detailing some of the infrastructure needs in the U.S., concluding that we need to spend $1.3 trillion by 2010 just on maintenance and repair, and that won't help the capacity issue.

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Aircraft Cleaning Companies and Co-Brand Marketing

If you own an aircraft washing service then you have invested in expensive equipment to clean planes. Parking that equipment on non-scheduled aircraft cleaning days seems like a waste of a quality asset and potential income. For instance a pressure washer or steam cleaning rig can be used to clean airport grounds in the evenings or even fleets of airfreight trucks after hours right?

Well sure and this brings us to the topic of Aircraft Cleaning Company Co-Brand Marketing and discovering other things to wash. My first aircraft washing business was started at age 12 and grew into a very large mobile washing service. At the time we were selling aircraft washing franchises in the US we did allow our teams to wash other things besides Aircraft on airport and adjacent properties. Parking Structure detailing, airport shuttle buses, scissor truck loaders, airfreight containers, concrete, runways, terminal signage, benches, buses, etc. Other than that they had to sign a franchise agreement for another of our co-brands; www.detailguys.com or www.truckwashguy.com , generally aviation folks are sharp and we generally allowed them to go with another crew for four days who was doing those other types of cleaning and ride along and work with their manager.

If you have cleaning teams you can trust around aircraft then you certainly can trust them around other ground equipment or cleaning concrete too. We did discover that it is much more difficult to go from let us say car washing or truck washing into aircraft cleaning. You see going from Car Washing to Aircraft Washing, was much more serious, we normally did not allow that with our franchisees without complete aircraft cleaning training of course, you understand. Consider all this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is an online writer in retirement.

Airline Industry Ticket Prices and Fuel Cost Issues

High fuel prices hurt the American family and they also hurt many industries, but what about the airline industry? The transportation sector relies on fuel to move around products in people and high fuel prices do impact this industry. Do high fuel prices hurt the airline industry as well? This is indeed a very good question and recently someone had asked clarification on this subject from an online think tank member when they stated;

“On average when the fuel prices rise, is it the airlines themselves that take the blow cost wise, or do they raise the price in airline tickets to cover the cost?”

The Airlines will attempt to pass on costs and we are seeing this now. But it is not always possible to do this if tickets have already been sold in advance and the prices rise very quickly, unless of course there are stipulations in the sale of the ticket that surcharges maybe added later.

One must also realize that often these times of high fuel prices are also used when a weak airline is hurting or in bankruptcy as the competition seek to cannibalize on certain routes with price wars.

Additionally costs in airfreight go up to and philosophically speaking this acts like an additional tax on society, because what ever is shipped, well the price goes up on those items to cover the increased costs. Companies hedge against this by raising prices; trucking, rail, shipping and airfreight; all have increased profits Q1, when the fuel prices go down, they hesitate to lower costs for a while and the longer they wait the more they make in the differences in the increased margins due to less fuel costs.

But you will also see a first mover; price war pull back coupled with aggressive sales campaigns and discount offers to move freight and or people too. People in airlines are really only organic self-moving up-right shaped boxes with special needs during flight. Philosophically thinking of course. So consider this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is an online writer in retirement.

Emery Express and Consolidated Freight; an end of an era

What many may not realize is that Emery Express was also a CF Company. You see John C. Emery, Sr. founded Emery Air Freight in 1946, when his company became the first air freight forwarder to apply for a common carrier license from the Civil Aeronautics Board (CAB). While Emery envisioned his company working in partnership with scheduled airlines, the airlines considered freight forwarders as competitors and fought his license application until 1948, at which time the CAB granted Emery a license as a common air freight carrier. His plan worked. During that time, the company operated out of a New York office with a fleet of vehicles that consisted of two Ford station wagons. Since those beginnings a half-century ago, Emery has grown into a $2.9-billion global air, ocean, customs brokerage and logistics services company.

By 1956, Emery Air Freight had expanded overseas with its first international office in London and had inaugurated transatlantic service. The company moved to the cutting edge of technology in 1969 with a computerized tracking and tracing system called EMCON, short for Emery Control. John Emery died that same year and his son, John Emery, Jr., assumed leadership of the company. The fuel crisis of the early 1970's prompted the company to lease its own aircraft and launch the "Emery Air Force" in 1976. Emery now offered closed-loop control of shipments from pickup to delivery, with Emery trucks and aircraft overseeing every step of the transportation process. In a bid for expansion into the small package and letter market, the company acquired Purolator Courier in 1987. The acquisition proved disastrous and Emery struggled until Consolidated Freightways, Inc. purchased the company and merged it with CF Airfreight, CFI Inc.'s existing air cargo company. That was when CF became the parent of Emery. Over the next two years, from 1989 to 1991, the new Emery, now known as Emery Forwarding, struggled financially as did the original company in its last several years of existence. In response, CFI Inc. implemented management restructuring and marketing plans that helped launch Emery to its position as a market share leader in the heavyweight, business-to-business airfreight industry. By early 1992, the new marketing and operations plan had started to turn the company around. Customer confidence increased, as evidenced by the award of several major "primary carrier" contracts from such companies as General Motors. In September of that year, Emery reported its first monthly profit since its acquisition by CFI Inc. Emery completed its financial turnaround in 1993, earning its first annual profit for Emery under any management since 1986. That same year, the company won a 10-year, $1-billion operations contract from the U.S. Postal Service (USPS) to operate its Express Mail air transportation system. They lost that contract due to non-performance and then Fed Ex picked up that volume. However once back on good financial footing, Emery tried to position itself into a "one-stop" transportation and logistics provider. Thus it was happy to have the support of CF.

The Company introduced its logistics subsidiary in 1992 and strengthened its ocean services and customs brokerage divisions, both of which Emery had owned since 1976. The company also committed more than $75 million for information technology upgrades to meet customer needs beyond the year 2000. Emery's parent company, Consolidated Freightways, Inc., restructured itself toward the end of 1996 with the spin-off of its national long-haul motor carrier unit. The parent company was renamed CNF Inc. and consisted of Emery, Con-Way Transportation Services and Menlo Logistics. Con Way was the Non-Union part of CF.

In December 2001, Emery was combined with the former Menlo Logistics and Vector SCM. As part of the Menlo Worldwide group of integrated service providers, Emery Forwarding now looks forward to working with our customers in new directions to design an even greater range of supply chain solutions than ever before. Menlo Worldwide is the acknowledged industry leader in global 3PL solutions, and launched the first successful 4PL program. I know this sounds very official however realize that this is the project of the Bell Labs Think Tank and is partly improvised from the theory of Net-Centric Warfare with a slice of Fred smiths, Hub System thoughts, implementing every type of known transportation to deliver the packages and shipments. Emery Forwarding, part of the Menlo Worldwide group of integrated business solution providers, offers international air and ocean forwarding, North American overnight, expedited, second-day and deferred air freight, customs brokerage and project management services. Menlo Worldwide, based in Redwood City, Calif., is a $2.9 billion company with 12,000 employees and global supply chain services in more than 200 countries. Menlo Worldwide was formed in December 2001.

Few realize the connection between Emery and Consolidated Freight, but those who do realize that more was lost when CF filed bankruptcy as there were synergies in the entire logistic chain spanning nearly 7 and a half decades.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is an online writer in retirement.

Rapid Change, Quick Change, Convertible Configurations in Vehicles, Aircraft and Logistics

When the margins get tough, efficiencies are crucial. Whether in airlines, fighting a war or maximizing company and logistical assets.

Problem is efficiency are common and occasional quite frustrating to the Airline Industry, it is a matter of survival, literally. Let us take the “Quick Change Concept” for Commercial Aviation. Recently in Dayton OH the seminar about quick-change problems revealed the inability to adapt such concept to make the most of resources. We believe in efficiencies obviously.

Air Mail has been going on for as long as Commercial Aviation has existed when in Wichita Kansas “Commercial Aviation” was born. Aircraft make good tools for moving freight fast. The first multiple purpose aircraft, which could move people and freight and go from one to the other was the DC-10. Calling it a Convertible concept

http://www.aerosite.net/dc10.htm

Where seats could be removed and then it was able to be used for cargo. The DC-6C also was made convertible, but was not really a huge hit. The DC-8 also has some convertible Aircraft uses;

http://www.cargolion.com/acinfo.htm

The DC-10 came about when American Airlines put out to bid an aircraft which was roomy like the 747, but could maneuver in tight areas and fly on older runways with less take off space and need to be airborne faster. Also AA wanted a plane, which could carry 250 people.

Both Lockheed and McDonald Douglas decided to meet the offer. The Lockheed Aircraft of course was the L1011. The L1011 sold just about as many as the DC-10 for passenger flight. Eastern, TWA, Delta bought and loved the L1011 as did pilots and those who were scared after some crashes with the DC-10. Even so the US military bought the 10 and used it for flying gas stations, troop and cargo carriers and the airlines bought 30 convertible aircraft and later the Military seeing that Airline industry was cyclical decided to offer incentives when airlines bought DC-10s which could also be used as cargo planes in times of war. That was great until one aircraft had a cargo door come off at altitude and cause all the passengers and aircraft to crash.

In more recent times many 727s and 737s were built to be convertible under the theories of “Quick Change” where aircraft were used during the day for passengers and the seats taken out at night for cargo, then back again every day. This made it easy for airlines to lease their aircraft out at night. Sounds like a wonderful idea to save money, pay for aircraft and maximize utilization. The change over could be accomplished in 2-3 hours or so.

And their have been many different combos called such things as “Combo-Aircraft.” Combo Configurations, Convertible Aircraft and Quick Change Aircraft. Some of the Europeans called them Rapid Change Aircraft. In Rapid Change Aircraft used pallet type seating, although it is doubtful that the average passenger would see that they were sitting on one of four seats per pallet, but that is exactly what they were doing. Israel Aircraft Industries still do this with Jacob Netz. They use the 737 SF. Some turbo Props with regional airlines still do this with C235, DHC 8 –100 and –300s. Also the C-17 and ATR 42/72. even the Russians have been doing this for some time with their Ukraine Antonov 74. The newer Boeing 737-700 w/Cargo can quick change to a 149 passenger airline or 41,420 lbs. On eight pallets

http://www.boeing.com/commercial/news/feature/737qc.html

The US Navy also has some 737-700s C-40 with Quick Change Configuration. One company working with these airlines is Pemco, which seems to be one of the experts in the area of “QC-Quick Change.” The problems of course come into play when a different company runs the aircraft at night running freight while the other company owning the aircraft flys people during the day.

What is the biggest problems are include aircraft not reaching its next day departure airport due to weather. Problems in damage during freight operations. Excessive wear on interiors, since the freight would fly one way and then load interior for passengers, leaving the other interior at the other airport. Of course once the interior is out it is much easier to clean while out of the plane without the worry of mold forming. Mold issues have been manipulated by class action attorneys lately and when you are exchanging the interior in the middle of the night or on a dewy morning, expect some issues.

Problems also occur when or if the aircraft is diverted because of weather to a third airport where no interior is located. Meanwhile first flight the next morning gets cancelled and scheduling gets screwed up and people are upset and the finicky consumer cannot accept this, they have places to be and things to do. An airline in BK or stressed to make payments on the aircraft may have no choice and have to do this program of airfreight at night. It works better when it is the same company, but many times there is no choice. Such quick solutions are usually ill thought and fail, but work short term to get the airline over a hump in a cyclical sector rotation. These time periods due to fuel costs, economic conditions are the bust years for airlines and they must make it through them to make big money on the boom years, if you look at the current fuel prices we will see Bankruptsies anyway in the Airline Sector and many have not fully recovered from previous situations after 9-11. Having a father involved in the Deregulation, and airline for some 20 years after leaving military aviation, it is more real than you can imagine.

In other countries and specifically China and Europe this concept is much more widely accepted and expected to help pay for the aircraft while their markets are more cost competitive for freight. If you will recall Nippon Express, DHL wars and Federal Express. Some much larger aircraft are used for this over there. BA has had many tries at this concept and is currently running a few aircraft in this fashion.

The US Military has aircraft such as the C-17 can carry 102 troops, or be used as a hospital with 54 patients, three helicopters, three tanks or 40 airdrop containers. What we see is a need in aircraft to be multi-use for missions. Some such as the KC-10 can carry people, cargo, or even fuel tanks, or some of each or all of one. This is a completely smart way to run logistics and complete tasks without the huge number of hibernated aircraft sitting and rotting in the desert. Many times components and changes can be made possible by several aviation companies. Even the idea of fighting fires using military aircraft such as C-130s using systems such as AFFS-Modular fire fighting systems is a great example of the need for convertible aircraft.

Now I want everyone to understand that this thought process is my example of my next point. My major point of course is that I believe we can do more with less, faster with the latest computer decision matrix and real time 4-D imaging and respond to threats as fast as they occur and turn off the problems before the get full blown by studying the needs and logistical flows and disruptions prior to the signal. Kind of like preventing an imploding vortex in a hydro-electric power plant or turning off a switch sending a signal at the speed of light before the entire signal has started, simply by using the disruption caused by the event to signal in advance the need to turn it off.

You can solve the worlds problems by watching flows and needs, staying efficient and adapting your strategy for crisis management and continually improving your finite capacity scheduling model to win the missions goals while simultaneously being prepared to take advantage of opportunities when everything appears to be in perpetual Chaos.

All Military equipment no matter what agency should be multi-use whenever possible, without regard to personal egos of any particular agency or inner fighting between Army, Navy, Air force, Marines, Coast Guard or other. Even the DEA, FBI, Border Patrol and now under umbrellas of Homeland Security should be streamlined to pursue such a pattern of operations when ever possible.

Why? Because it leaves us the money to do more R and D and afford more things necessary to accomplish additional and ever increasing missions of public safety. Why am I so intent on this theory? Because I see it in business and because it works. Take Fed Ex as a perfect example, no waste. A pilot will also load a container and a manager will also drive a delivery truck if needed, thus no wasted labor.

We need to have depots in key positions and even in other countries with warehoused equipment. For instance a Humvee is a universal tool. Once used it should be completely cleaned and put in storage in a warehouse. The vehicle should be totally universal no matter what is to be attached. For instance an ELF antenna, 50 Cal Machine Gun, GPS System, whatever can installed rapidly and the hook ups are all the same for all agencies and universal. Plug and play components always using the same adapters, like a PCMIA card slot, USB Port, Parallel Port. Like a 110V outlet in a house or a garden hose thread. Since the DOD has got smart and logistically looked at Wal-Mart Distribution for answers with RFID Chips why not go to the next step? Why waste efficiencies? Economies of scale are what won WWII. Bar coding and satellite pinging GPS location positioning will make it easy to know where each piece of equipment is at all times, anywhere in the world.

It is now possible to keep control of every piece of equipment in the entire military and once all components are the same, then any department can use them, plus once everything is standardized the Microsoft way, the economies of scale come into play and that means cost savings on contracts. It means universal systems, it means easier training and even privatized training. The person no matter what agency department or rank can be trained to use certain types of equipment, most in a simulator department. Such as driving a truck, Humvee, SUV, Generator, Computer, etc. Then when he, she or it needs to learn the specialty stuff that can be done as per local protocols of the Navy, Air Force, Marines or Coast Guard they can do that after wards. This means better training on the basics and specific training on the components. You see?

The most excellent factor in this is the basic life skills such as driving, computers, driving a truck are of value in the civilian force. I like this idea since in any given year 50,000 – 250,000 leave the military for civilian life. Wouldn’t it be great to know that a more disciplined workforce was also able to get work faster thus higher quality people might join our volunteer military. Also the issues with unskilled labor being complained about in places like AZ, NM, CA, GA, MS, LA, TN, FL and even CO might be ended. If you look at the globe and see the most likely future problems and safest and most friendly trading partners you can already see we have bases and areas to do such storage with adequate logistical infrastructure such as shipping, rail, large run ways to rapidly deploy equipment without duplication for each squadron, battalion, division, team. Certain items are specialty, but for most things they just need a troop carrier, Humvee, vehicle, etc. And they can have it faster and we can deliver the same number of units without having all the units or have to replace all the units.

Hibernation services contracts can be awarded to keep everything totally operational ready. We may have to pay more for these services than prior prime contractors have bid to make sure it is done correctly with no hiccups, but in the end we will have saved billions and we can re-invest our savings on the latest materials and R and D on the latest technologies. The delivery system, warehouse systems, standardization and commitment to work together is the key. We can do this and it could be done with simple components first and eventually with nearly everything.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is an online writer in retirement.