Approved Freight Forwarders https://www.approvedforwarders.com/ Wed, 27 Mar 2024 23:44:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.approvedforwarders.com/wp-content/uploads/sites/8/2019/09/site-favicon.png Approved Freight Forwarders https://www.approvedforwarders.com/ 32 32 LTL vs. FTL Shipping: A Comprehensive Guide to Choosing the Right Trucking Option for Your Business https://www.approvedforwarders.com/ltl-vs-ftl-shipping-a-comprehensive-guide-to-choosing-the-right-trucking-option-for-your-business/ https://www.approvedforwarders.com/ltl-vs-ftl-shipping-a-comprehensive-guide-to-choosing-the-right-trucking-option-for-your-business/#respond Thu, 28 Mar 2024 09:00:03 +0000 https://www.approvedforwarders.com/?p=7801 When it comes to over-the-road transportation, you'll have two main choices: less-than-truckload (LTL) and full truckload (FTL) shipping. Each of these options offers different timelines, different costs, and different advantages. We'll walk you through all of them so you can understand the distinctions—and pick the one that moves goods on your preferred timing, at your [...]

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When it comes to over-the-road transportation, you’ll have two main choices: less-than-truckload (LTL) and full truckload (FTL) shipping.

Each of these options offers different timelines, different costs, and different advantages. We’ll walk you through all of them so you can understand the distinctions—and pick the one that moves goods on your preferred timing, at your preferred budget.

In This Article

Your Content Goes Here
  • Definitions & Basic Differences: FTL vs. LTL
  • Cost Considerations: FTL Pricing vs. LTL Pricing
  • FTL & LTL Transit Time & Efficiency: A Comparison
  • Safety & Handling of Goods: Who’s the Winner? LTL or FTL?
  • Environmental Impact: Which Has the Lighter Carbon Footprint, LTL or FTL?
  • Flexibility: Which Mode Is Best for Companies with Fluctuating Needs?
  • FTL vs. LTL Shipping: The Bottom Line

 

-When to Choose FTL

 

-When to Choose LTL

 

-Real-World Example: Comparing FTL & LTL Pricing and Timelines

 

Definitions & Basic Differences: FTL vs. LTL

Let’s start with a few definitions.

Full truckload (FTL) shipping means hiring an entire, dedicated truck for a shipment. Because there’s just a single shipper’s load on the truck, it heads straight to its destination without any intermediate stops.

Overall, FTL tends to be best suited for large shipments, as well as time-sensitive ones.

And because they’re reserving the entire truck, shippers choosing FTL also have to pay for the entire truck, no matter how much space their load takes up.

Less-than-truckload (LTL) shipping means that shipments from several different shippers are loaded into the same truck, allowing them to “share” the space. These shipments will all head to their own destinations, so the truck will make several stops along the way.

In broad strokes, LTL shipping is better suited for smaller shipments of up to ~6 pallets.

(By the way, there are some scenarios in which it might make sense to move shipments of 7-12 pallets via LTL. That’s why it pays to talk with an expert!)

In LTL shipping, you only pay for the space you use. This makes LTL an attractive option for many businesses, since the total cost will generally be lower. However, since the truck makes multiple stops, shipments take longer to arrive at their destination.

Now that you understand the overall concepts, let’s take a more detailed look at the differences between these two shipping methods so you can choose the right one.

Cost Considerations: FTL Pricing vs. LTL Pricing

The Bottom Line: For smaller shipments, LTL is cheaper since you’ll “share” the cost with other shippers. However, FTL shipments can produce economies of scale.

As you saw in the section above, the pricing structure is different for FTL shipments vs. LTL shipments. In an FTL shipment, you’re paying for the entire truck. In an LTL shipment, you’re only paying for the space you use on the truck.

So, when you’re looking solely at the overall total cost, booking an FTL shipment is more expensive.

But that’s not the whole story.

 

FTL Cost Efficiencies

If you’re able to put together a shipment that’s large enough to fill a truck (or almost fill a truck), FTL becomes a much more cost-effective strategy. When you look at the cost on a per-unit basis, an FTL shipment can be cheaper, which ultimately means a lower landed cost for you.

In other words, FTL offers economies of scale. These typically come into effect when you have more than six pallets or your shipment weighs more than 12,000 lbs.

Of course, if you simply don’t have a large enough shipment to make the math work, LTL may be the better choice.

(By the way, if you want a hand running the math for both scenarios, reach out to our experts and request a quote!)

FTL vs. LTL: Ease of Pricing

FTL and LTL shipments prices are also calculated differently. FTL pricing is generally fairly simple. It’s calculated at current market rates, often quoted as a rate per mile, plus any accessorials (like inside delivery) and possibly a fuel surcharge.

FTL prices may be influenced by the weight of your shipment, the shipping lanes it will travel in, the season, and the location of the origin and destination points.

LTL pricing can be a little more complex, since rates will be based on the shipment’s National Motor Freight Classification (NMFC) code. The NMFC code, in turn, matches up with a freight class. Freight class is one way that carriers evaluate the “transportability” of a shipment by taking into account factors like density, handling, liability, and stowability. Freight classes also offer carriers a standardized way to classify less-than-truckload (LTL) freight shipments, making them easier to price.

In addition to the freight class, LTL pricing also depends on factors such as special services or handling, fuel surcharges, origin and destination, time of the year, weight, and the absolute minimum charge (AMC).

In other words, LTL pricing can be a little more complex. It’s useful to be aware of this before you go through the quote process.

Now that we’ve discussed cost considerations, let’s take a look at one of the other big differentiating factors: transit times.

FTL & LTL Transit Time & Efficiency: A Comparison

The Bottom Line: If timeline is your top consideration, choose FTL shipping.

When you need to move your goods fast, FTL shipping delivers:

  • Since you’re buying the entire trailer, the only cargo in the truck is yours, and the only stops will be yours as well.
  • This means a shorter timeline—and a more predictable one, too. If you need to make a delivery window with a fulfillment partner, FTL can offer you greater peace of mind.

With an LTL shipment, you’ll see longer transit times, since the driver will make multiple drop-offs and pick-ups. Since there are simply more factors involved, the timeline isn’t always as precise as for FTL shipments.

There’s also another factor to consider when selecting between FTL and LTL shipping.

Safety & Handling of Goods: Who’s the Winner? FTL or LTL?

The Bottom Line: If you’re moving fragile items, delicate items, or items that require special handling, choose FTL shipping.

In an FTL shipment, your freight will be loaded and unloaded once. Additionally, your cargo will stay in the same trailer the whole time, and it won’t get shifted around to make room for another shipment.

In contrast, with an LTL shipment, your freight will share space with other freight. Other goods will get loaded and unloaded around it, increasing the possibility of damage. Ultimately, the more handling a shipment is subject to, the greater the potential for bumps and bruises.

That’s the risk you take when you choose LTL. Choose your shipping method accordingly.

Environmental Impact: Which Mode Has a Lighter Footprint, LTL or FTL?

The Bottom Line: If you’re not able to fill a full trailer, LTL lowers your carbon footprint by “carpooling” with other shipments.

If sustainability is a value your company is pursuing, LTL may be the more environmentally-friendly choice, depending on your load size:

  • If you’ve got a smaller load that you were considering sending FTL, choosing LTL means a lower carbon footprint since other shipments can essentially “carpool” with yours. If other shippers also combine their freight into LTL shipments, that can ultimately mean fewer trucks on the road and fewer emissions.
  • If you’ve got a full trailer of freight, FTL might be the more environmentally friendly choice. After all, since you’re maximizing the truck’s carrying capacity and sending it on a very direct route.

At the end of the day, your environmental impact depends on the size of your shipment.

 

Flexibility: Which Mode Is Best for Companies with Fluctuating Needs?

The Bottom Line: If your shipping needs vary, LTL offers you more flexibility.

Businesses whose freight volumes fluctuate frequently will likely find LTL solutions easier to manage. Rather than having to commit to filling a trailer, LTL offers you the ability to simply book the space you need.

So, if you’re just getting started—or the volume of freight you ship varies significantly—LTL will likely be your better bet.

 

FTL vs. LTL Shipping: How to Make Your Final Choice

Full truckload (FTL) shipping offers faster, more reliable timelines and a lower risk of damage. However, you’ll need to fill the trailer to take advantage of economies of scale, which means less flexibility overall.

Choosing FTL makes sense when:

  • You can gather enough freight to fill a trailer
  • Your shipment falls between 5,000 and 44,000 lbs.
  • You need to move 6 or more pallets
  • You have a firm delivery appointment/window to meet with a fulfillment partner and face penalties for delays or the delivery date is time sensitive
  • Your product is fragile or high value
  • You do not want your cargo handled during transit

Less-than-truckload (LTL) shipping offers a more flexible solution that can be more cost effective and environmentally friendly. However, the trade-off comes in extended transit times and increased risk of damage.

It makes sense to choose LTL if:

  • You’re moving anywhere from 1–6 pallets
  • Your shipment weighs between 150 and 12,000 lbs.
  • Your product is sturdy or properly packaged to protect against increased handling
  • You can deal with potentially longer transit times
  • Cost is the most important factor in your decision

To offer you one more perspective on the pros and cons of these shipping methods, take a look at this real-world example of the difference between LTL and FTL cost and timing:

FTL vs. LTL: Cost & Timing

Shipping a single pallet from California to Arizona might take an LTL provider two business days and cost ~$250-$300, versus going FTL which could be delivered overnight for ~$1,200-$1,400.

The same pallet going from California to Georgia could be shipped via LTL in 6-7 business days for ~$500-$1,000 versus shipping it via FTL in 3-4 business days for ~$7,000-$7,500.

Keep in mind that these quotes are strictly ballparks to demonstrate the overall difference between FTL and LTL pricing and timing. For a firm quote for your FTL/LTL shipment, please reach out to our team.

Choosing the Right Shipping Option for Your Business

Ultimately, savvy shippers leverage both LTL and FTL, depending on the shipment they’re moving. Understanding the pros and cons of both options offers you the agility and the flexibility to match the right service to the load you’re moving, so you can maximize the advantages of each shipping mode.

When it comes to LTL and FTL shipping, our experts are here to help. We can connect you with quotes for both LTL and FTL shipping options. We would also be happy to take a holistic look at your transportation needs to see if we can help you leverage these modes more effectively and save you money. Just reach out to our team to start a conversation.

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Lower Emissions & Improved Safety: 5 Emerging Innovations in Rail Freight https://www.approvedforwarders.com/lower-emissions-improved-safety-5-emerging-innovations-in-rail-freight/ https://www.approvedforwarders.com/lower-emissions-improved-safety-5-emerging-innovations-in-rail-freight/#respond Thu, 14 Mar 2024 09:00:55 +0000 https://www.approvedforwarders.com/?p=7784 As the transportation industry continues to focus on sustainability, rail freight continues to stand out. The consulting firm IDC calls rail "the most energy efficient and least carbon intensive freight transportation mode." Case in point: Rail makes up about 9% of freight activity, but it only accounts for 3% of energy use in the [...]

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As the transportation industry continues to focus on sustainability, rail freight continues to stand out.

The consulting firm IDC calls rail “the most energy efficient and least carbon intensive freight transportation mode.” Case in point: Rail makes up about 9% of freight activity, but it only accounts for 3% of energy use in the transportation sector.

But the rail industry isn’t resting on its laurels. Instead, the industry continues to embrace technological innovations designed to reduce its carbon footprint even further, improve safety, increase efficiency, prevent breakdowns, and keep cargo moving.

In this article, we’ll investigate some of the latest innovations in rail freight, including its foray into machine learning and predictive technology.

Let’s start with the ways the rail industry aims to reduce its carbon footprint.

Investigating Alternative Fuels for Rail Freight

Countries all over the world are looking into alternatives to diesel fuels to reduce greenhouse gas emissions (GHG) from trains and meet ambitious climate goals. Within the search, a few frontrunners have emerged:

 

Electrification

 

In the European Union, 60% of the rail network is electrified, with 80% of traffic running on these lines—a significant step toward the EU’s goal of becoming climate-neutral by 2050. In December 2023, Indian Railways completed 100% electrification of its system, in support of India‘s goal of achieving net zero carbon emissions by 2070. China, too, has adopted electrified rail, with 72% of its system electrified.

 

Although the United States accounts for about 25% of all global rail freight activity, it’s only electrified less than 1% of its rail network. Estimates suggest that freight diesel will continue to dominate in North America through 2050. While the owners of the U.S. rail network are not yet sold on electrified railways, they have investigated other alternatives, including battery and hydrogen locomotives.

 

Hydrogen

 

Hydrogen rail projects are popping up all over the world. In Germany, Alstom’s hydrogen fuel cell train, the Coradia iLint, traveled 730 miles without stopping to refuel. In the German state of Bavaria, Siemens has also completed test runs of their Mireo Plus H hydrogen-powered train.

 

In Japan, Hitachi and Toyota are collaborating on test railway vehicles with hybrid systems leveraging hydrogen-powered fuel cells and storage batteries to power electric trains.

 

These hydrogen-powered trains are still in the testing phase—and the majority of tests involve passenger, rather than freight applications. However, as the feasibility of hydrogen technology becomes clearer, so will the possibilities for wider adoption.

 

Compressed Natural Gas (CNG)

 

The Illinois company CNGmotive has proposed a compressed natural gas (CNG) solution for rail freight, involving a composite fiberglass tank that would deliver a safe CNG solution for locomotives.

 

The application appeals to many in the rail industry, since diesel-powered locomotives could be retrofitted to run on natural gas, rather than replaced. Long-term adoption would require a significant infrastructure investment to support refueling. On the plus side, the reduction in GHG emissions would also be significant.

 

The industry is also exploring liquid natural gas (LNG) as a lower-emissions alternative to diesel. In both CNG and LNG applications, current models offer a dual-fuel option so the locomotive can burn both natural gas and diesel fuel.

 

With diesel alternatives either underway or in testing, the rail industry has put itself on a more sustainable pathway to reduce its already light carbon footprint.

 

Improving Safety with Positive Train Control

Like many other forms of freight transportation, train operation is subject to human error, which can result in accidents like train-to-train collisions and over-speed derailments.

To reduce the possibility of human-error accidents, Positive Train Control (PTC) systems have been implemented on all Class I PTC route miles. These sections of track see five million or more gross tons of annual traffic, as well as hazardous material transport and/or commuter rail transportation.

 

The PTC system leverages hundreds of thousands of components to determine the location, direction, and speed of trains to detect accidents before they happen. The systems then:

  1. Warn operators of potential problems
  2. Safely stop the train if the operator doesn’t react

PTC systems leverage GPS location reports, wired and wireless communication networks, trackside equipment, onboard systems, and traffic control centers with servers that all collect and analyze data to sound warnings of unsafe conditions.

To see exactly how Positive Train Control works, check out this explanation from the Association of American Railroads:

While Positive Train Control systems have significantly reduced fatalities associated with freight rail, it does have its limitations. It can’t prevent accidents resulting from track or equipment failure. For those challenges, railroad companies are looking to different solutions.

 

Anticipating Failure with Predictive Sensors

The catastrophic 2023 derailment in East Palestine, Ohio wasn’t a product of human error. Instead, the National Transportation Safety Board (NTSB) report cited equipment failure—an overheated wheel bearing and the disintegration of a rail car’s wheel set.   

 

An emerging innovation from Hum Industrial Technology may be able to prevent future similar derailments. Given that the East Palestine accident involved hazardous materials—including vinyl chloride, a toxic flammable gas—there’s considerable interest in a solution that can detect problems early.  

100,000 miles

distance in advance that the Hum Boomerang can detect bearing failures

The Hum Boomerang sensor offers live monitoring of railcar bearings, wheels, trucks, and tracks. By keeping tabs on factors like vibration, this technology can detect a catastrophic failure much earlier than hot box detectors, which monitor the temperature of bearings every 20 miles. In fact, Hum argues that their Boomerang can even predict bearing failures 100,000 miles in advance 

Although some argue that the technology is too expensive for widespread adoption, the magnitude of the East Palestine derailment has more arguing for preventative technology, like that developed by Hum.

 

Expanding Track Inspection Capabilities with Drones and Machine Learning

In addition to equipment failure, infrastructure failure can also cause incidents. A broken rail resulted in the derailment of a train hauling coal in Colorado, ultimately collapsing a bridge.

 

Although railroads have systems in place to monitor for broken rails, the system failed in this case, leading to the accident. Railroads also have inspection programs to catch infrastructure failure before it causes an accident. However, they’ve largely been a human-led activity, limited by manpower and the feasibility of reaching certain sections of track.

 

Today, the rail industry is looking to drones and machine learning to offer critical information about the health of their rail infrastructure:

  • Drones collect images, video, and LiDAR surveys, delivering high-quality data and offering easy access to track located in rough or steep terrain. Some companies, like BNSF Railway Co., are even using fully autonomous drones. They follow a programmed flight plan, monitored remotely by an operator and with the permission of the Federal Aviation Administration (FAA).
  • Once all that data is collected, software like Ardenna’s Rail-Inspector® uses machine-learning algorithms to process it, assessing track and railbed infrastructure health and noting any anomalies.

In concert, these two pieces of technology have allowed railways to inspect tens of thousands of lines of track with much greater ease than a 100% human-led solution. The drones capture the data, and the software analyzes it, allowing leadership to make data-backed decisions regarding maintenance.

 

Ultimately, as more companies adopt similar technology, they can expect not only cost savings and greater efficiencies, but also increased safety for rail employees and the general public alike.


Battling Technology Risks with Technology

man on laptop cyber security

Sometimes, operational risks come from technology itself. Like other transportation companies, railroads face cybersecurity challenges, including ransomware attacks, data breaches, and denial-of-service (DoS) attacks. In fact, the older technology and sheer size of their operations can make railroads a particularly compelling target for cybercriminals.

 

Companies like Cervello offer cybersecurity platforms for rail providers, designed to track behavior of all rail equipment, including operational technology (OT) and industrial control systems (ICS); IoT devices; signaling equipment; and rolling stock to identify threats before they become critical. The company’s Cervello Brain technology analyzes all the data it collects to identify patterns and anticipate threats.

 

Other companies like RazorSecure also use machine learning solutions to power constant analysis designed to stop intrusions in their tracks.

 

As cybercriminals become more and more sophisticated—and railroads continue to leverage connected technology to improve safety and efficiency—railroads will need to stay vigilant. Advancing cybersecurity technology, which can condense a significant amount of information into easy-to-understand dashboards and recommendations, will be a huge boon as railroads continue to secure their operating environments.

 

Keeping Rail Freight Moving Through Innovative Technology

Technological innovations are impacting rail operations in many different areas—sustainability, safety, and efficiency among them. Continued investment in these advances will only further the ultimate goal of rail freight providers—keeping cargo moving quickly, efficiently, and safely.

 

Thinking about adding rail to your freight mix? Our experts would be happy to help you analyze your transportation usage to uncover the most efficient, cost-effective solutions for moving your cargo. Schedule a complimentary consultation today.

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Transloading vs. Intermodal Freight Shipping: Make the Right Choice for Your Business https://www.approvedforwarders.com/transloading-vs-intermodal-freight-shipping/ https://www.approvedforwarders.com/transloading-vs-intermodal-freight-shipping/#respond Thu, 22 Feb 2024 09:00:56 +0000 https://www.approvedforwarders.com/?p=7729 Understanding the difference between transloading and intermodal freight shipping can help you keep your cargo moving efficiently—and save you money. Not sure what these logistics terms mean? We'll walk you through the definitions of both, and explain which method to choose when—and why. We'll also throw in a quick discussion of another similar term, [...]

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Understanding the difference between transloading and intermodal freight shipping can help you keep your cargo moving efficiently—and save you money.

Not sure what these logistics terms mean? We’ll walk you through the definitions of both, and explain which method to choose when—and why.

We’ll also throw in a quick discussion of another similar term, transshipping, so you can understand all of these logistics strategies and pick the right one for your freight.

What Does Transloading Mean in Shipping?

Transloading refers to moving cargo from one mode of transportation to another. More specifically, when cargo is transloaded, it’s unloaded from one transportation method (such as an ocean freight container) and reloaded into another (such as a truck trailer).

Transloading may involve:

  • Unpacking goods and palletizing them for their ongoing journey
  • Storing cargo until the next mode of transportation is ready
  • Services at either origin or destination—or both

To help you better understand transloading, let’s look at an example involving a business receiving goods from their supplier in Vietnam. The cargo travels in an ocean freight container from the factory in Vietnam through the Port of Ho Chi Minh City to a West Coast port and then to a nearby warehouse. At the warehouse, the goods are unloaded from the ocean freight container, and placed in the warehouse. A few days later, the goods are loaded into a truck trailer for transportation to the business’s nearest distribution center.

That’s an example of transloading.

What About Cross-Docking?

If you’ve looked into transloading, you may also have heard about cross-docking, which can be a smart way to reduce your storage use and keep your freight moving.

Cross-docking is similar to transloading, in that it’s a strategy that involves moving goods from one method of transportation to another.

Here’s the difference: In a cross-docking scenario, your cargo doesn’t get stored in a warehouse, and it doesn’t get repackaged. Instead:

  • The inbound cargo is removed from the container or trailer and placed right on another dock.
  • As soon as the outbound container or trailer is ready to receive the cargo, it’s loaded and sent to its next destination.

When you choose cross-docking, your goods spend as little time as possible sitting around. They’ll also stay in their original packaging. There’s no breaking down of cargo or reconfiguring of pallets. This maximizes efficiencies of both time (by keeping the cargo moving) and cost (by minimizing storage and handling/packaging costs).

Now that we’ve covered transloading, let’s look at another logistics strategy that shares some similarities.

 

What Is Intermodal Freight Shipping?

Cargo Containers Transportation On Freight Train By Railway. Intermodal Container On Train Car

As you probably know, inter- means between, so intermodal freight shipping means between modes.

Given that transloading also involves moving cargo between shipping modes, you might be wondering…

What’s the difference between intermodal and transloading?

In both intermodal shipping and transloading, cargo is transferred from one freight mode to another—from truck to rail, for example.

However, there’s a key difference:

  • When transloading, cargo is unloaded from its container or trailer and then reloaded into a new container or trailer.
  • In intermodal shipping, cargo is loaded into intermodal containers. These containers are simply transferred from mode to mode. They remain closed, and the cargo isn’t unloaded from the container until it reaches its final definition.
The Bottom Line: In intermodal shipping, cargo stays in the same container throughout its journey.

Domestic Intermodal vs. International Intermodal

Some of the confusion around intermodal freight transportation and transloading comes from the way domestic and international intermodal freight interacts in the U.S.

First, it’s important to understand that international intermodal containers are different than domestic intermodal containers:

  • International intermodal freight moves in the standard 20-foot and 40-foot containers you’ll see used for ocean freight.
  • U.S. domestic intermodal freight moves in 53-foot containers, which are most often transferred between truck and rail.

When goods arrive in an international intermodal container, they may be transloaded into a 53-foot domestic intermodal container for ease of movement around the U.S.

In other words, there is a reason that an intermodal container would be opened and the cargo removed (i.e. transloaded): if it’s coming from an international destination and being transferred to a standard domestic intermodal container. However, once that cargo is in the domestic intermodal container, it will stay inside until it reaches its final destination.

Why Choose Intermodal vs. Transloading When Moving Freight?

Now that we’ve explained the differences between these two shipping strategies, let’s take a closer look at when you might choose intermodal freight transport and when you might choose to transload.

Timing

Intermodal shipping can occasionally be subject to delays due to congestion or equipment shortages. Transloading can offer more flexibility for keeping your cargo moving.

Efficiencies

Would you rather move five 40-foot containers or three 53-foot domestic containers? Depending on the size and shape of the cargo you’re moving, transloading the contents of 40-foot containers to 53-foot domestic containers could mean fewer trips, saving you money.

Potential Damage & Security

Although transloading providers are experts at what they do, the increased handling that comes along with transloading also comes with risks. These include potential damage during repackaging or cargo loss. Some shippers prefer intermodal solutions that mean a sealed container from origin to destination.

Additional Services

If you’re working with a transloading service provider, they can offer assistance when things go awry with your shipments. For example, if you’ve missed a delivery window, they can offer short-term storage. They might also be able to reload and restack any pallets that may have gotten damaged during the first leg of transit, which can prevent further damage and salvage final deliveries.

If you need some help making the decision for your business, reach out to our experts for a complimentary consultation. We’d be happy to talk it through with you.

Finally, let’s talk about one more related term: transshipping.

How Does Transshipping Work?

containers on cargo

Transshipping is a pretty simple concept. It means moving a container from one ship to another.

Think of transshipping like booking a plane ticket with a layover. If you’re flying between large hubs, like Los Angeles and New York, you can often get there in a single flight. The same is true for cargo traveling between major ports.

However, if you’re going from Los Angeles to Detroit, you may need to stop at an intermediate airport and connect to a second flight.

That’s essentially what happens in transshipping. Cargo travels to one port, where it’s removed from the first ship, then put on a second ship to its final destination port.

What Is the Difference Between Transloading and Transshipping?

The big difference between transloading and transshipping is that the cargo never leaves the container when it’s being transshipped. Additionally, transshipping takes place between two ships, whereas transloading usually involves different modes of transportation.

What Is the Difference Between Intermodal and Transshipping?

Intermodal shipping involves transferring cargo between more than one mode of transportation, such as ocean to truck or truck to rail. In a transshipping situation, the transfer happens between sea-going vessels.

Transloading vs. Intermodal vs. Transshipping: Know Your Logistics Strategies

Now that you’ve got a handle on the differences between transloading, intermodal freight shipping, and transshipping, the next step is to maximize your efficiencies by using the right strategies for the right situation.

One of our experts would be happy to help. We’ll sit down with you and take a holistic look at your cargo flow to identify areas where we can save you time and money. Reach out to schedule a complimentary consultation—and start leveraging the right logistics strategies for your business.

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Moving Cargo from Asia to Hawaii? Choose the Right Option for Your Budget https://www.approvedforwarders.com/moving-cargo-from-asia-to-hawaii-choose-the-right-option-for-your-budget/ https://www.approvedforwarders.com/moving-cargo-from-asia-to-hawaii-choose-the-right-option-for-your-budget/#respond Thu, 01 Feb 2024 09:00:29 +0000 https://www.approvedforwarders.com/?p=7706 Choosing a freight mode always involves a consideration between speed and cost. When you're moving cargo from Asia to Hawaii, air freight offers a fast, but pricey solution. Ocean freight offers a more cost-effective avenue—but a much slower one. In this article, we'll walk through the two options for moving cargo from Asia to Hawaii. [...]

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Choosing a freight mode always involves a consideration between speed and cost.

When you’re moving cargo from Asia to Hawaii, air freight offers a fast, but pricey solution. Ocean freight offers a more cost-effective avenue—but a much slower one.

In this article, we’ll walk through the two options for moving cargo from Asia to Hawaii. Understanding both can help you strike the right balance between cost and speed—and establish a freight mix that keeps your business moving forward while protecting your bottom line.

Option #1: Air Freight from Asia to Hawaii

Transit Time: 1-2 days

Cost: $$$

There’s no question: Air freight is the fastest way to get goods from Asia to Hawaii. When time is a factor, air freight is the obvious choice.

However, it’s also the most expensive.

Additionally, some items simply aren’t suited for air freight, including oversized freight with measurements greater than 20′ long x 8′ high x 8′ wide. Hazardous freight may also be challenging to move via air, depending on the airline.

The Bottom Line

Air freight is best for moving time-sensitive goods to Hawaii. When time is your most important factor, air freight is the right choice.

(Tip: Looking into air freight consolidations can assist with lowering your freight bills.)

Option #2: Ocean Freight Direct from Asia to Hawaii

Transit Time: 17-22 days days from mainland China ports to Honolulu

Cost: $

As you can see, there’s a significant difference in transit time between Asia-Hawaii air freight and ocean freight. While air freight can arrive in a matter of days, ocean freight takes a few weeks.

However, the cost is considerably lower when you’re using ocean freight.

Additionally, some items simply aren’t suited for air freight—like hazardous materials. We ship a significant amount of freight containing lithium batteries to Hawaii via ocean freight. Oversized and overweight freight also has to travel over the ocean.

The Bottom Line

 

If budget is your primary consideration, ocean freight from Asia to Hawaii will be your top choice. Additionally, if your freight contains hazardous materials, or would be considered oversized or overweight, you may need to move your goods by sea.

(Tip: Don’t have enough to fill a container? Less-than-container load options are available as a cost-effective method for moving smaller loads from Asia to Hawaii.)

The Green Factor: Your Carbon Footprint

If your company is focused on reducing your environmental impact, consider ocean freight. It’s the greener choice, by a significant margin. According to statistics from the International Chamber of Shipping, air freight releases 435.0 grams/tonne-km in CO2 emissions, versus the 3.0 released by very large container vessels.

Bonus Option: A Mix of the Two

The costs to run a business in the Aloha State are considerable, and our Hawaii customers are always looking for ways to lower their freight bills.

For many Hawaii-based businesses, the answer lies in finding the right mix between air freight and ocean freight.

  • When you’re able to plan ahead and order in advance, ocean freight can be the right solution for moving your freight. (And it will keep your landed cost down!)
  • When you have a time-sensitive need—such as a critical order for a key customer or an important restock—you may need to use air freight. Although the shipment will be expensive, it might be necessary for keeping your business moving forward until your next ocean freight shipment arrives.

Looking for Storage Options on Oahu?

Our sister company, Royal Hawaiian Movers, offers warehousing and storage solutions on Oahu, as well as on-island delivery to make restocks simple. To learn more, reach out to our team.

Making the Right Choice for Your Business

At the end of the day, selecting between transportation modes—and routes—can be complex. For many companies, it’s about establishing a mix that gets cargo where it needs to go, while protecting their bottom line. Understanding all the available options will only help you make better decisions in this arena, while keeping your freight bills as low as possible.

Want some help establishing the right freight mix for your Hawaii business? Our experts would love to help! We have decades of experience helping Hawaii-based businesses get the freight they need to keep their businesses moving, while balancing cost and speed. Just reach out for a quote to get started.

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Hawaii Air Freight: Your Guide to Fast & Easy Cargo Shipments https://www.approvedforwarders.com/hawaii-air-freight-cargo-shipment-guide/ https://www.approvedforwarders.com/hawaii-air-freight-cargo-shipment-guide/#respond Sat, 02 Dec 2023 10:00:57 +0000 https://www.approvedforwarders.com/?p=7596 Hawaii imports about 85% of the goods used in the state. Residents and businesses alike rely on air freight to deliver high-value goods, time-sensitive items, perishables like fresh seafood products, and more to the Aloha State. In this article, we'll show you everything you need to know to make your next Hawaii air cargo [...]

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Hawaii imports about 85% of the goods used in the state. Residents and businesses alike rely on air freight to deliver high-value goods, time-sensitive items, perishables like fresh seafood products, and more to the Aloha State.

In this article, we’ll show you everything you need to know to make your next Hawaii air cargo shipment simple. We’ll walk you through some facts and figures to give you a lay of the land. We’ll show you the advantages air freight offers Hawaii shippers. And, finally, we’ll show you what you need to know to move your air cargo to or from Hawaii with ease.

In This Article


Understanding Hawaii Air Freight: Facts and Figures

  • Inbound Air Freight
  • Outbound Air Freight
  • Common Origin and Destination Points: Domestic & International

Why Choose Air Freight for Hawaii Shipments?

  • Shorter Timelines
  • Less Handling
  • Fewer Fees

5 Must-Knows About Hawaii Air Cargo

  • Service Levels
  • Pickups & Deliveries
  • Multi-Modal Providers
  • Hawaii-Specific Restrictions
  • Air Freight Restrictions

Understanding Hawaii Air Freight: Facts and Figures

Along with ocean freight, air freight is a key mode for moving goods and supplies to and from Hawaii.

Inbound Air Freight

Between 1990 and 2019, the volume of inbound Hawaii air cargo more than doubled. What kind of items do Hawaii shippers bring in via air freight? Check out the following list of the most common air freight commodities headed to Hawaii.

Most Common Inbound Air Freight Commodities

Domestic: Electronics; precision instruments; miscellaneous manufactured products; machinery; motorized vehicles; transport equipment; textiles/leather; pharmaceuticals; articles of base metal; and meat/seafood.

International: Exports of repaired/returned imports; handbags, wallets, and jewelry cases; jewelry and precious metal; watches; fresh and chilled fish; computers and parts; art paintings and drawings; seats and parts; medical, surgical, and dental equipment; and natural and cultured pearls.

Outbound Air Freight

Between 1990 and 2019, outbound Hawaii air cargo didn’t see as much growth as inbound air cargo. Instead, outbound cargo only increased by about 50% during that 29-year period. If you’re curious what kind of items Hawaii shippers export via air freight, you’ll find a list of the most common commodities below.

Most Common Outbound Air Freight Commodities

Domestic: Mixed freight; pharmaceuticals; other foodstuffs; meat/seafood; other agricultural products; textiles/leather; alcoholic beverages; printed products; and electronics.

International: Aircraft parts; turbojets and turbopropellers; electric telephone parts; live and fresh crustaceans; aircraft engines and parts; military apparel and equipment; parts and accessories; tank and armored fight vehicles; fresh melons and papayas; coffee and coffee husks.

 

Common Origin and Destination Points for Hawaii Air Freight

Hawaii air freight comes and goes from all over the U.S.—and the world. Next, we’ll take you on a quick tour of the most common origin and destination points for Hawaii air cargo.

Top Destinations for Outbound Domestic Air Freight from Hawaii

  • Los Angeles International Airport (LAX)
  • Oakland International Airport (OAK)
  • Ontario International Airport in Southern California (ONT)
  • San Francisco International Airport (SFO)
  • Dallas/Fort Worth International Airport (DFW)

Top Origin Points for Inbound Domestic Air Freight to Hawaii

  • Los Angeles International Airport (LAX)
  • Ontario International Airport in Southern California (ONT)
  • Memphis International Airport (MEM – a FedEx hub)
  • Louisville Muhammad Ali International Airport (SDF – a UPS hub)

Top Destinations for Outbound International Air Freight from Hawaii

  • Sydney Kingsford Smith Airport, Australia (SYD)
  • Auckland Airport, New Zealand (AKL)
  • Hong Kong International Airport (HKG)
  • Tokyo Haneda Airport, Japan (HND)
  • Vancouver International Airport, Canada (YVR)

Top Origin Points for Inbound International Air Freight to Hawaii

  • Narita International Airport, Japan (NRT)
  • Tokyo Haneda Airport, Japan (HND)
  • Chubu Centrair International Airport, Japan (NGO)
  • Kansai International Airport, Japan (KIX)
  • Incheon International Airport, South Korea (ICN) in South Korea

Finally, Hawaii has 15 airports across the state, nine of which receive air cargo. Daniel K. Inouye International Airport (HNL) on Oahu receives far and away the most air freight, as measured in cargo tons.

Here’s how all of Hawaii’s airports stack up, in order of most air cargo tons received to least:

1. Daniel K. Inouye International Airport, Oahu (HNL)

2. Kahului Airport, Maui (OGG)

3. Hilo International Airport, Big Island (ITO)

4. Ellison Onizuka Kona International Airport at Keahole, Big Island (KOA)

5. Lihue Airport, Kauai (LIH)

6. Kapalua Airport, Maui (JHM)

7. Molokai Airport (MKK)

8. Lanai Airport (LNY)

9. Kalaupapa Airport, Molokai (LUP)

Now that you’ve got a good lay of the land in terms of Hawaii air cargo, let’s take a closer look at why Hawaii shippers might choose this mode of transportation.

 

Why Choose Air Freight for Hawaii Shipments?

When you price it out, you’ll discover that air freight is often the most expensive option for moving goods and supplies to Hawaii. However, along with that cost comes three distinct advantages.

 

Air Freight Advantage #1: Shorter Timelines

When time is tight, air freight is the right choice to get your items to an isolated archipelago like Hawaii. Air freight can arrive in Hawaii in as little as a few days—or faster, depending on how much you’re willing to pay.

In contrast, the ships carrying ocean freight can take anywhere from five to nine days to transit from California to Hawaii. Plus, you’ll need to add additional days on either end for the ship to get loaded and unloaded.

Bottom line: When your timelines are critical, go with air freight.

 

Air Freight Advantage #2: Minimal Handling

Air cargo freighter

When you move items to Hawaii via ocean freight, they’re subject to all kinds of forces along the way. This includes the loading and unloading of the container, plus the impact of the wind and waves on the steamship as it crosses the Pacific Ocean. (That’s why it’s so important to package your ocean freight correctly!)

Despite all the care that goes into your shipment, sometimes goods that travel via ocean freight arrive with an occasional bump or bruise.

In contrast, air freight shipments are subject to minimal handling. As a result, air freight usually arrives in impeccable shape.

To offer one example, did you happen to notice the handbags, wallets, and jewelry listed among the most popular air freight commodities above? Luxury retailers rely on air cargo to move their most expensive items so they arrive in perfect condition.

 

Advantage #3: Fewer Handling Charges (or None at All!)

calculating cubic feet

If you’re familiar with ocean freight, you also might be familiar with all the line items on an ocean freight invoice—terminal handling charges, drayage charges, wharfage charges, and more. All of these little items can really add up.

In contrast, air freight shipments are generally subject to fewer “extra” charges. Some companies may add on documentation, handling, or other miscellaneous fees to handle an air freight shipment. However, Approved Freight Forwarders doesn’t charge any additional fees for air freight shipments. We only charge for the freight itself.

This can make it a lot easier to understand your all-in cost for moving items to Hawaii—and it can make air freight a more budget-friendly choice.

5 Must-Knows About Hawaii Air Freight

Air freight

Now that you understand why you might choose air freight for a Hawaii shipment, let’s talk about a few must-knows so you can execute that shipment with ease.

 

Must-Know #1: You’ll Have Some Choices to Make

Air freight comes in a number of different service levels, each with their own speed and pricing. As you might guess, the faster your shipment moves, the more expensive it will be. (Generally!)

Below, you’ll find a list of available air freight service levels, so you can get a sense of what’s available:

  • Air Charter – The top level of air freight service in which you hire an entire airplane for your exclusive use.
  • Part Charter – A high-priority service in which you move your cargo on an already-scheduled charter flight.
  • First Flight Out – Secures a spot for your cargo on the next available flight(s) between two points.
  • Express – Your cargo moves on the first available flight with the quickest transit time.
  • Standard – General, all-around air freight service.
  • Deferred – A lower-cost service that moves your items on flights more convenient for the airline. Comes with cheaper rates but longer transit times.
  • Consolidated – The lowest-cost air freight service. For a consolidated shipment, a freight forwarder accumulates freight headed for a common destination and ships it either on a set schedule or once the freight reaches a certain weight/volume.

Not sure which service level is right for you? Talk to your forwarder about your goals and budget, and they’ll match you with the right air freight service.

 

 

Air Freight Consolidations: A Budget-Friendly Option

As we mentioned above, air freight consolidations (also called consols) are your most budget-friendly option for Hawaii air cargo. Like a less-than-container (LCL) ocean freight solution, your shipment “shares” space in a larger shipment, and all the shippers in the consolidation essentially split the cost.

 

For certain types of shipments, consolidated air freight can make financial sense—and it will often get your goods to Hawaii faster than ocean freight. To learn more, get a quote from our Hawaii air cargo experts.

Request A Quote

Must Know #2: Not All Providers Offer Pickups & Deliveries in Hawaii

Some air freight providers solely deal with airport-to-airport cargo shipments and don’t offer door-to-door service. Other providers may do pick-up and delivery on the U.S. mainland, but not in Hawaii. Still others may offer service to certain areas of Hawaii and not others.

For maximum flexibility, look for a one-stop provider who can offer door-to-door services on both ends. You might not need pickup and delivery services immediately. However, there may come a day when you need help getting a shipment to or from the airport. If your provider offers door-to-door service, even in Hawaii, you’ll save yourself a ton of hassle.

 

Must-Know #3: Seek Out Multi-Modal Capabilities

Along similar lines, consider choosing a provider that can handle both Hawaii ocean freight and air freight. These capabilities will give you more options and more flexibility, both in terms of cost and speed.

For example, let’s say you run a retail business in Honolulu, and you’ve run out of an item that a customer needs urgently. However, you only need a few pieces to get you through until your next big restock arrives.

If you’re working with a provider who arranges both air freight and ocean freight, they can solve this problem in a single phone call. For example, a freight forwarder could move the pieces your customer needs via air freight. Then, your forwarder could follow up with a (lower-cost) ocean freight shipment to get your stock back up to normal levels.

This solution will solve your immediate needs, while saving you some money along the way. And rather than having to coordinate with multiple carriers, the right forwarder could handle the whole thing for you—adding significant ease to your Hawaii cargo flow.

 

Must-Know #4: Be Aware of Hawaii Import Restrictions

Because of Hawaii’s isolated position in the Pacific Ocean, the islands have a unique ecosystem, with many of species of flora and fauna you won’t find anywhere else. To protect this delicate ecosystem, the state has requirements in place for the import of fish, wildlife, and agricultural products.

If you’re shipping products that fall into these general categories, mention it up front to your forwarder or carrier. They can run you through any restrictions or procedures that apply to your individual situation.

 

Must-Know #5: Some Items Can’t Go Via Air Freight

Finally, you should also be aware that some items simply aren’t suited for air freight. This includes:

Large, oversized items (bigger than 20’ long, 8’ high, and 8’ wide), which are extremely difficult to move via air freight.

Heavy items, which can be challenging and expensive to move via air freight.

Hazardous materials, some of which can’t ship via air freight. For example, lithium batteries have become increasingly challenging to move to Hawaii. In 2019, the FAA banned the transportation of lithium ion cells and batteries as cargo on passenger aircraft. They can still travel on cargo-only planes, but that means fewer options for shippers.

To move these types of items, you may need to use ocean freight.

If you’re looking for options for hard-to-ship materials, reach out to one of our experts. We’ve moved just about everything you can think of to Hawaii, and we can get your cargo to Oahu, Maui, Kauai, and both sides of the Big Island, safely and affordably.

 

The Air Freight Advantage

For many shippers, air freight offers exactly what they need—a quick solution for moving high-value cargo to or from the Hawaiian Islands. For others, ocean freight is the better solution. Either way, now that you have a deeper understanding of Hawaii air freight, you’ll have a better sense of which one is right for you—and how to make your next shipment simpler.

If you’re moving cargo to Hawaii, our experts would be happy to help! We offer air freight and ocean freight solutions to Oahu, Maui, Kauai, and the Big Island. We also have terminals, teams, and trucks on all four islands, so we can get your cargo exactly where it needs to go. Reach out for a free quote to get started, and we’ll be in touch.

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Maximize Your Holiday Season with These 5 Logistics Insights for Retailers https://www.approvedforwarders.com/maximize-your-holiday-season-with-logistics-insights-for-retailers/ https://www.approvedforwarders.com/maximize-your-holiday-season-with-logistics-insights-for-retailers/#respond Tue, 07 Nov 2023 10:00:33 +0000 https://www.approvedforwarders.com/?p=7550 The holiday season can be a make-or-break one for many retail businesses. Statistics from the National Retail Federation (NRF) reveal that retailers earn, on average 19% of their total sales during the last two months of the year. (Or more, depending on the business!) As you prepare for the holiday season, we've got five [...]

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The holiday season can be a make-or-break one for many retail businesses. Statistics from the National Retail Federation (NRF) reveal that retailers earn, on average 19% of their total sales during the last two months of the year. (Or more, depending on the business!)

As you prepare for the holiday season, we’ve got five insights for you. These tips will help you optimize your logistics, protect your margins, and keep your holiday stress to a minimum—at least where your business is concerned!

 

#1: The “Holiday Season” Starts Earlier Every Year

Remember the days when the holiday shopping season (semi-)officially kicked off with Black Friday, the day after Thanksgiving?

21%

Percentage of holiday shopping complete by mid-October

Those days are long gone, with new statistics showing that holiday shoppers have, on average, finished 21% of their holiday shopping by mid-October, according to a Google/Ipsos survey.

Additionally, half of the consumers surveyed were willing to consider shopping with new stores or brands, giving retailers extra incentive to be fully stocked and ready to go at the start of October.

If you’re one of those retailers coming off the big back-to-school rush, it’s important to plan inventory restocks early. That way, your storefront will be ready to capture as much business as possible in early October.

Holiday Insight: To maximize your revenue—and your profits—plan ahead with both your suppliers and your freight forwarder. Start by working backward from the dates you’ll need your inventory in hand. Your freight forwarder can help you calculate the necessary shipping times. (Plus a little extra cushion. More on that in a moment!)

Thoughtful planning will ensure optimal stock levels—and enable you to take advantage of the most economical methods of shipping your inventory, such as ocean freight.

#2: “Peak Season” Presents Shipping Challenges

In straightforward economic terms, you’ll see the principles of supply and demand in action as retailers all over the globe stock up for October, November, and December sales.

As you prepare to ship your holiday inventory, you’re likely to see:

 

Higher, More Volatile Freight Rates

During the run-up to the holiday season, demand allows freight carriers to charge higher rates, including peak season surcharges. Additionally, for ocean freight shipments, congestion at the ports could mean long lines for drivers picking up containers, which may result in detention charges.

Your freight forwarder will be an invaluable partner in estimating these costs, so you can set your own prices accordingly.


Small Parcel Pricing Can Go Up, Too

During the holiday season, FedEx and UPS add demand surcharges to their prices. (The USPS did the same during 2022 but opted against it in 2023.) If you’re shipping to customers using any of these carriers, keep these extra costs in mind. (We’ll also talk more about final mile delivery in the next section!)

Delays & Interruptions

 

When ocean freight demand rises, so do the possibilities of congestion, delays, and rolled cargo—i.e., when a vessel is overbooked and your cargo is pushed to the next sailing.

A good freight forwarder has a few strategies in their toolkit to combat these issues. For example, if you’re sending several containers, your forwarder may want to separate them into several bills of lading (BOLs). This reduces the possibility of your entire shipment from getting rolled (although it doesn’t prevent it entirely).

Your best strategy is to plan as far ahead as possible, leaving extra cushion in case of delays or interruptions.

It’s also important to remember that ocean freight transit times are only one piece of the puzzle. Once the ship arrives in port, it will need to be unloaded. Then, your goods will need to be picked up from the port and prepared for delivery. Your freight forwarder can help you estimate the door-to-door timing so you can plan.

Holiday Insight: Need some of your goods fast? A good freight forwarder can also connect you with air freight solutions. Air freight consolidations can make this mode a little more affordable. Expedited LCL is another option that offers a faster alternative to traditional ocean freight.

#3: Free Shipping Still Matters

During the holidays, carriers deliver as many as ~90 million parcels a day.

46%

Percentage of shoppers who cited “free shipping” as the most important consideration for shopping online

You can’t deny the importance of small parcels during the holiday season, which is why we wanted to spotlight one of the most important factors consumers cite when choosing an online retailer: free shipping.

46% of consumers in a CivicScience survey cited “free shipping” as the most important factor in choosing where to shop online. For comparison, “buying from a trusted website” was the next most popular factor, selected by just 20% of people.

In other words, free shipping matters to consumers. It’s an important possibility to consider during the holiday season.

As we noted above, small parcel carriers may charge demand surcharges, so it’s also critical to weigh consumer preference against the potential cost to your business.

One option to consider: buy online, pick up in store (BOPIS) options. BOPIS strategies can reduce your final mile shipping costs by offering consumers “free” delivery options that don’t cost them anything out of pocket (but do require them to stop by a retail location).

As a bonus, offering BOPIS options to your customers can also:

Side Note: If you’ve only got a brick-and-mortar presence, we’ve good news. Brick-and-mortar numbers for holiday shopping have been trending upward since 2021. In other words, consumers are increasingly willing to do some of their shopping in person—which takes shipping out of the picture entirely.

Holiday Insight: Offering BOPIS options means you may need to adjust your inventory strategy to keep a deeper backstock of popular items. Monitor your inventory levels closely so you can prevent out-of-stock situations, which may mean losing out to a competitor.

#4: Returns Come with Pluses and Minuses

Holiday returns can be notoriously costly for retail operations.

18%

Returns rate during the
holiday season

In fact, retailers can see a returns rate as high as 18% during the holiday season. Additionally, returns fraud can also be a problem, with the National Retail Federation estimating that as many as 10.4% of returns are fraudulent.

That said, easy returns remain important to consumers, with 98% of consumers in a FedEx study reporting that fast and convenient returns make them more likely to order again.

Understanding the cost—and knowing the importance to consumers—retailers need to strike a balance between convenience for customers and expenses to the operation.

Interestingly enough, more than half of the respondents in the FedEx study were willing to pay for hassle-free returns. In other words, there’s room for retailers to recoup some of their costs—as long as they provide a smooth and easy system for returns.

Holiday Insight: Retailers might also consider BORIS options—buy online, return in store. These options can eliminate the significant cost of return shipping. However, like BOPIS strategies, BORIS options require operations to rethink their inventory management strategies to handle the new inflow of stock, which may or may not be in sellable condition.

#5: Take a Breath, Evaluate, and Prepare for Next Year

Finally, when all is said and done, it’s tempting to have a seat, wipe your brow, and leave all the holiday craziness behind.

Before you close the book on the year, spend some time to look back on your holiday season. While everything is still fresh in your mind, consider a stop/start/continue analysis to capture insights. This format offers a simple way to evaluate what went well, what didn’t, and what you can learn from everything that happened to make next year’s holiday season even better.

Ask yourself:

  • What do we need to stop doing?
  • What do we need to start doing?
  • What do we need to continue doing?

A couple of areas to consider:

  • Suppliers – Do you need to find any alternate suppliers to reduce risk during future “rush” seasons?
  • Inventory – Did you have enough on hand? Or do you need to strike a better balance between your just-in-time/just-in-case strategies?
  • Logistics – How well did your freight flow work? Do you need to start planning earlier? Try different modes? Or do you need a different freight forwarder in your corner?

Get everything down while it’s still top of mind, and you’ll set yourself up for an even more amazing holiday season next year.

Holiday Insight: Don’t forget that Lunar New Year is right around the corner! Like the holiday season, Lunar New Year can mean higher freight prices and delays. Get ahead with our guide to Lunar New Year freight shipping.

Making the Most of the Busiest Shopping Days of the Year

The holiday season is a stressful, yet rewarding time of the year for retailers. By planning ahead, in concert with your suppliers and your freight forwarder, you’ll be prepared to maximize your revenue—and your profits.

Need some help planning your freight flow for the busy season? Our experts would be happy to help! Just reach out for a complimentary consultation. Together, we’ll take a holistic view of your freight needs and uncover the most efficient ways to keep your operation stocked, even during its busiest months.

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Approved Freight Forwarders Earns EPA SmartWay® Certification https://www.approvedforwarders.com/approved-freight-forwarders-earns-epa-smartway-certification/ https://www.approvedforwarders.com/approved-freight-forwarders-earns-epa-smartway-certification/#respond Wed, 01 Nov 2023 19:52:46 +0000 https://www.approvedforwarders.com/?p=7533 Approved Freight Forwarders Joins EPA SmartWay® Transportation Partnership: A Commitment to Sustainability October 23, 2023 Approved Freight Forwarders has announced its membership in the SmartWay® Transportation Partnership, a program initiated by the U.S. Environmental Protection Agency (EPA). Thanks to its extensive usage of SmartWay-certified carriers, the company has achieved certification as a SmartWay Logistics Company. [...]

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Approved Freight Forwarders Joins EPA SmartWay® Transportation Partnership: A Commitment to Sustainability

October 23, 2023 Approved Freight Forwarders has announced its membership in the SmartWay® Transportation Partnership, a program initiated by the U.S. Environmental Protection Agency (EPA). Thanks to its extensive usage of SmartWay-certified carriers, the company has achieved certification as a SmartWay Logistics Company.

This impressive accomplishment shows that Approved Freight Forwarders is committed to being eco-friendly, teaming up with similar partners and organizations to make the future more sustainable.

The Significance of SmartWay® Transportation Partnership

The SmartWay® Transportation Partnership, a program under the U.S. Environmental Protection Agency, is a comprehensive initiative to enhance fuel efficiency and curb emissions within the transportation industry. This voluntary collaboration between the government, transportation sector, and shippers gives companies powerful tools to reduce their environmental impact.

Approved Freight Forwarders: A Commitment to Sustainability

Approved Freight Forwarders, a Southern California-based company, is acutely aware of the environmental impact of the transportation and logistics industry. This awareness prompted them to prioritize reducing their ecological footprint. The company’s commitment is clear, and the SmartWay program offers powerful tools to choose carriers with a similar commitment.

The Benefits of SmartWay Certification

Approved Freight Forwarders’ registration in the SmartWay Partnership empowers the company to monitor the current environmental footprint of its operations. This includes tracking emissions and fuel usage from the partners responsible for carrying Approved Freight Forwarders’ freight.

Environmental Impact of the SmartWay Partnership

The EPA estimates that the SmartWay Partnership has achieved significant environmental savings. These savings include 336 million barrels of oil, $44.8 billion in fuel costs, 143 million metric tons of CO2, 2.7 million short tons of nitrogen oxides (NOx), and 112,000 short tons of particulate matter (PM). This is equivalent to eliminating annual energy use in over 21 million homes. The partnership boasts nearly 4,000 partners, including shippers, logistics companies, truck, rail, barge, and multimodal carriers.

Approved Freight Forwarders’ inclusion in the SmartWay® Transportation Partnership and their attainment of SmartWay Logistics Company certification exemplify their unwavering commitment to sustainable and environmentally responsible practices. As they join forces with like-minded partners, they take significant strides towards a more environmentally conscious and sustainable future in the transportation and logistics industry. Their dedication to reducing their ecological footprint sets an inspiring example for others to follow.

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What Is Drayage? What Role Does It Play in Logistics? https://www.approvedforwarders.com/what-is-drayage/ https://www.approvedforwarders.com/what-is-drayage/#respond Tue, 17 Oct 2023 19:53:47 +0000 https://www.approvedforwarders.com/?p=7502 Drayage acts as a crucial link in getting cargo to its final destination. These short-haul trucking services offer vital connections between ports, rail spurs, warehouses, storefronts, and other destinations. In other words, drayage is an essential logistics function that keeps freight moving. By definition, drayage refers to trucking freight over short distances. In this article, [...]

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Drayage acts as a crucial link in getting cargo to its final destination. These short-haul trucking services offer vital connections between ports, rail spurs, warehouses, storefronts, and other destinations.

In other words, drayage is an essential logistics function that keeps freight moving.

By definition, drayage refers to trucking freight over short distances. In this article, we’ll give you a deeper dive on this concept so you can understand why drayage is so vital to logistics. You’ll also understand why you might see a drayage line item on your freight invoice, and you’ll know exactly what you’re paying for when you’re shipping freight.

By the way, if you have questions about any other industry terms, make sure to check out our Approved glossary of freight and logistics terms!

What Is Drayage? What Role Does It Play in Logistics?

 

Simply put, freight simply couldn’t move from its origin to its destination point without drayage. Let’s take a look at a definition of drayage so you can understand why:

 

Drayage: A Definition

Drayage is a local trucking service that moves cargo over short distances.

To better understand the role drayage plays in logistics, let’s take a look at an example. A 40-foot ocean container is making its way from a vendor in Shanghai to a retail company located in Los Angeles, California. Along the journey, drayage services would come into play in the following areas:

  • To get the container to the port in Shanghai, a driver will need to pick it up from the vendor’s warehouse in Shanghai and move it to the port. This service would be considered drayage.
  • After the container arrives at the Port of Los Angeles, a driver will retrieve the container from the port and move it to the retail company’s nearby warehouse. That service would also be considered drayage.

Other examples of drayage include:

  • Transporting an intermodal container from a sea port to a rail yard to continue its journey to the final destination.
  • Moving an intermodal container from a hub to a nearby warehouse.
  • Transporting goods via truck between distribution centers located in the same metropolitan area.

The common thread in all of these examples is this: Drayage involves short trips via truck. It also often connects different modes of transportation to keep freight moving toward its destination.

FreightWaves reports that there are more than 60 million drayage movements in North America alone each year. This gives you a good sense of just how vital a role drayage plays in the movement of goods.

Drayage Services Explained

Now that we’ve offered you a definition of drayage, as well as some examples, let’s take a deeper look at the range of services that can fall under the category of drayage.

The Intermodal Association of North America (IANA) breaks down drayage into six different types in their glossary:

Six Types of Drayage

1. Cross-Town or Inter-Carrier Drayage: A movement of an intermodal unit across town from one railroad to another for continuance of the move.
2. Door-to-Door Drayage: Retail drayage involving over-the-road movement of a unit to a customer location.
3. Expedited Drayage: Movement of an intermodal unit over the road to get it there on time. This exceptional drayage usually involves time-sensitive freight.
4. IMX or Intra-Carrier Drayage: Movement of an intermodal unit from a carrier’s rail hub to the same carrier’s intermodal hub. IMX drayage extends the reach of an intermodal hub.
5. Pier Drayage: An over-the-road movement of an intermodal unit from a carrier’s rail hub to a port’s dock or pier.
6. Shuttle Drayage: A movement of an intermodal unit either loaded or empty from a hub to another parking lot because the railroad has run out of room at the hub.

These six types of drayage offer you another look at the way it acts as a vital connection when transporting freight. It bridges two transportation modes. It moves cargo between two nearby locations, and it can even facilitate logistics by alleviating backups at hubs.

Drayage Charges & Costs

Occasionally, shippers are introduced to the term drayage when they’re reviewing their shipping invoices.

Some freight providers offer all-in-one invoices that reduce all shipping costs to a single line item.

However, other freight providers will break out all the shipping charges, so that shippers can see a separate line item marked drayage.

What factors go into the cost of drayage? When calculating the price, your provider will consider things like:

  • Distance
  • Shipment weight
  • Shipment packaging and how easily it can be moved/transported
  • Any required special handling

Shippers may also be subject to additional fees during drayage services. Depending on the circumstances of your shipment, these charges may include:

  • Tolls – If the driver has to pay a toll at any point during drayage service, those tolls will likely be charged back to the shipper.
  • Detention fees – Typically, a certain amount of waiting time is included when the driver is picking up or dropping off cargo. If the driver has to wait longer than the included “free time,” shippers may be charged a detention fee.
  • Demurrage fees – If the shipper isn’t able to arrange for a timely pickup of their container via a drayage provider, they may be subject to demurrage fees. Demurrage fees are charged when a container is left at the port or terminal beyond the agreed-upon “free time.”

When you’re getting a quote for your shipment, make sure to ask about any additional fees, such as the ones listed above. A good freight provider will walk you through any “extras”—and help you estimate your final cost so you can protect your bottom line.

Drayage: The Challenges

As with any link in the supply chain, there are a few challenges that can crop up around drayage. While these challenges are largely out of shippers’ control, it’s important to understand them—and plan for them—so you can effectively manage your supply chain.

Frequently Asked Questions About Drayage

Finally, let’s go through a few questions we often get about drayage service. If you have any additional questions, you can always contact our team.

What Is Drayage Service?

Drayage service moves cargo over short distances via truck. For example, moving a container from the Port of Los Angeles to an intermodal hub would be considered drayage service.

What Does Drayage Do?

Drayage is a short-haul trucking service that moves freight to a nearby location. It might connect two modes of transportation, such as ocean and long-haul trucking. Drayage can also move freight between locations within a contained area, such as two distribution centers located in the same greater metropolitan area.

What Is an Example of Drayage?

If a driver picks up a container at the Port of Long Beach and delivers it to a nearby warehouse for unloading, that would be an example of drayage.

Why Do They Call It Drayage?

Drayage finds its origin in the word dray—a cart used to move heavy loads. These carts were pulled by horses, called dray horses. The goods loaded onto these carts were heavy, so the dray horses could only take them so far. As a result, drayage became synonymous for moving cargo over short distances.

What Is the Difference Between Drayage and Long-Haul?

The difference between drayage (short-haul trucking) and long-haul trucking lies mainly in the distance traveled. Just as it sounds, short-haul trucking/drayage involves quick trips, while long-haul trucking involves transporting cargo over greater distances.

Because of this difference, drayage and long-haul trucking utilize different equipment. Long-haul trucks are designed for extended journeys, while drayage trucks are designed for trips that last no longer than a day.

What Kind of Trucks Are Used for Drayage?

The trucks used for drayage are generally heavy-duty, Class 7 and 8 trucks. Traditionally, these vehicles have been diesel powered. However, there’s a significant movement toward zero-emissions drayage trucks. This is especially true in California, where Advanced Clean Fleets regulation is aimed at 100% zero-emission drayage trucks in the state by 2035.

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The Benefits of Guam Air Freight: Tips for Simple Shipments https://www.approvedforwarders.com/guam-air-freight-tips/ https://www.approvedforwarders.com/guam-air-freight-tips/#respond Mon, 18 Sep 2023 06:38:52 +0000 https://www.approvedforwarders.com/?p=7471 When you need to get cargo to Guam fast, air freight is your best bet. This mode of transportation can move freight to Guam in as little as a few days, and it has the added benefit of subjecting your cargo to minimal handling.   In this guide, we'll show you everything you need [...]

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When you need to get cargo to Guam fast, air freight is your best bet. This mode of transportation can move freight to Guam in as little as a few days, and it has the added benefit of subjecting your cargo to minimal handling.

 

In this guide, we’ll show you everything you need to know to send air freight to Guam with ease. We’ll cover 1) the main advantages of air freight over other modes of transportation, 2) whether your air cargo needs to clear Guam customs, and 3) five must-knows to make planning your next shipment a snap.

 

In This Article:

Let’s start with what sets air freight apart from other modes of transportation.

 

Why Choose Air Freight? 3 Advantages to Consider

Air freight is often the most expensive way to move cargo to Guam. However, that cost buys you three distinct advantages:

Advantage #1: Shorter Timelines

If you’ve got something that absolutely has to get to (or from!) Guam in the shortest timeline possible, air freight is the way to go. In fact, when FEMA urgently needed to move recovery supplies to Guam in the wake of Typhoon Mawar, they chose air freight to get those initial supplies to the island as soon as possible.

 

In contrast, ocean freight from California takes about two weeks in transit time to Guam. When you add in freight cut-offs, loading, and unloading, you’re probably looking at about three weeks from start to finish. (Read more about how long it takes to ship freight to Guam.)

 

When your timeline is critical, air freight is far and away your best choice for moving cargo. Its shorter delivery times can give a business an edge by getting goods in the hands of customers faster.

Advantage #2: Minimal Handling

Items that move to or from Guam via ocean freight are subject to all kinds of forces during their journey—loading and unloading, plus the wind and waves during the two-week ocean transit. (That’s why packaging your ocean freight correctly is so important!) As careful as the carriers who touch your container are, ocean freight sometimes arrives with an occasional bump or bruise.

 

In contrast, air freight shipments are subject to minimal handling, so it arrives at its destination in impeccable shape. Those who sell luxury goods in Guam’s high-end stores especially appreciate this aspect of air cargo. Their items can only be sold in perfect condition, and they’ll often choose air freight for that reason.

Advantage #3: Fewer Handling Charges (or None at All!)

If you’ve ever looked at an ocean freight invoice, you’ll see all kinds of line items, including terminal handling charges, drayage charges, wharfage charges, and more. These can really start to add up.

 

In contrast, air freight shipments are generally subject to fewer “extra” charges, although some companies may add on documentation, handling, or other miscellaneous fees. Approved Freight Forwarders doesn’t charge any additional fees. We only charge for the air freight itself. This can make it a lot easier to understand your all-in cost for moving goods to Guam. For some shippers, it can make choosing air freight more economical.

 

Note: Air freight going to Guam has to pass through the Guam Customs and Quarantine Agency (CQA). Clearing Guam customs comes with an additional charge. We’ll cover that next!

Get a Quote

Weekly Air Freight Consolidations to Guam

If you’re looking for a budget-friendly air freight solution, consider a consolidation, also called a consol. In an air freight consolidation, different shippers’ cargo is gathered in a warehouse, and then it’s all sent to the same destination at the same time. Essentially, these shippers “share” space in a larger shipment—and share the cost.

 

Sending your item in a consolidation might mean waiting a bit longer in contrast to a dedicated air freight shipment. However, it’s significantly less expensive.

 

In partnership with our sister company, DeWitt Guam, Approved sends a weekly air freight consolidation to Guam. If you deliver your freight to our City of Industry, CA warehouse by noon on Thursday, it will arrive on Guam on Monday.

To qualify, your shipment:

  • Must measure less than or up to 20’ long, 8’ high, and 8’ wide
  • Must not contain perishables, pets, or vegetation
  • May contain hazardous materials, dependent on airline approval
Get a Quote

5 Must-Knows About Guam Air Freight

To add ease to your next Guam air freight shipment, we’ve compiled our list of the top five things you need to know. With these distinctions, you’ll avoid the most common pitfalls and simplify your future air freight shipments.

 

Must-Know #1: All Shipments to Guam Must Pass Through Customs

As we mentioned above, Guam has its own customs agency. The Guam Customs and Quarantine Agency (CQA) clears all arriving shipments to Guam, both international and domestic.

This means customs fees for air freight shipments:

 

The first 100 lbs. of air cargo are assessed a $125.00 fee, and a $.0012 fee will be charged for every pound thereafter.

 

You’ll also need to collect the right paperwork for the CQA, including a commercial invoice. Your forwarder can assist you in gathering all the required documentation.

Will You Need to Pay Use Tax on Your Air Freight Shipment?

Guam’s use tax law states that “Every person who imports into Guam, or acquires in Guam from any other person, any property for his use or consumption shall be subject to 4% Use Tax based on the landed value of such property. This is not applicable to items imported for resale.”

In other words, if you’re importing items intended for business or personal use, your shipment will be subject to a 4% use tax. This tax must be paid before your items are released to you.

However, if you’re running a licensed business in Guam and sending items to the island intended for resale, your shipment will not be subject to the 4% use tax. You will, though, pay the 4% gross receipt tax when the goods are sold on Guam.

These rules apply to both domestic and international air freight shipments to Guam.

By the way, if you’re sending air cargo from Guam to the U.S., it will be considered a domestic shipment. However, your shipment will still need to clear U.S. Customs at its first point of entry. Your forwarder can assist with preparing the paperwork you need for quick and easy clearance.

Must-Know #2: Air Freight Comes in Different Service Levels

Above, we mentioned our weekly consolidated air freight shipment to Guam. Consolidated service is just one of several air freight service levels available. Higher levels of service mean faster delivery, but they also mean a higher cost.

 

No matter your budget, it’s important to get a sense of the entire landscape so you know what’s available to you—just in case:

  • Air Charter – Just as it sounds, an air charter involves hiring an entire airplane for your sole use. This is the top level of service for air freight.
  • Part Charter – A high-priority air freight service that allows you to secure a spot on a scheduled charter flight.
  • First Flight Out – For cargo that needs to move quickly, first flight out service means your cargo moves on the next available flight(s) between two points.
  • Express – This priority-level service books space on the first available flight with the quickest transit time.
  • Standard – General, all-around air freight service. Compared to options like ocean freight, standard air freight offers a relatively speedy delivery time.
  • Deferred – This lower-cost service puts your cargo on flights that are more convenient for the airline. Rates are often cheaper, but longer transit times are also likely.
  • Consolidated – The lowest-cost air freight service, in which a freight forwarder accumulates freight and ships either on a set schedule or once the freight reaches a certain weight/volume.

Not sure which service is right for you? Talk to your forwarder about your goals and budget, and they’ll match you with the right service.

Must Know #3: Not All Providers Offer Pickups & Deliveries on Guam

Some air freight providers are just that: They deal solely with airport-to-airport cargo shipments, with no options for door-to-door service. Other providers may be able to offer door pick-up and delivery on the U.S. mainland, but not on Guam.

 

For maximum convenience, look for a one-stop provider who can offer door-to-door air freight services on both ends. You might not need it right now. However, down the road, that kind of flexibility can come in handy. It will save you from calling (and coordinating with!) a multiple providers, should you need help moving your cargo to or from the airport.

Must-Know #4: A Multi-Modal Carrier Can Offer Advantages

Along those same lines, look for a provider that can assist with multiple modes of transportation—such as air freight and ocean freight. At the end of the day, these providers can offer you more flexibility, both in terms of transit times and budget.

For example, let’s say you’re running a business on Guam, and you’ve run out of some inventory you need urgently. However, you don’t need the entire shipment, just a couple of pieces to get you through.

 

If you’re working with a provider who handles air freight and ocean freight, you can solve this problem with one phone call. For example, a freight forwarder could arrange to move a small shipment of inventory via air freight, with the rest to follow in a few weeks via ocean freight, a much cheaper mode of transportation. This will get you the inventory you need, and save you some money along the way. Rather than having to contact multiple carriers, a forwarder could arrange it—and coordinate the whole thing for you.

 

This kind of partnership can add significant ease to your Guam freight going forward.

 

By the way, FEMA used a similar strategy to move recovery materials to Guam after Typhoon Mawar. As we mentioned earlier, they used air freight to move critical supplies to the island in the immediate aftermath of the storm. Then, they followed those air freight shipments with ocean freight shipments to support ongoing recovery efforts in the weeks that followed.

Must-Know #5: Some Items Can’t Go Via Air Freight

Finally, you should also know that air freight comes with a few more restrictions than ocean freight.

  • Large, oversized items (bigger than 20’ long, 8’ high, and 8’ wide) are extremely challenging to move via air freight.
  • Additionally, heavy items can be difficult—and they’ll also be expensive to move.
  • Finally, certain hazardous materials can’t be shipped via air freight. For example, lithium batteries have become increasingly challenging to move, ever since the FAA banned the transportation of lithium ion cells and batteries as cargo on passenger aircraft. They can still travel on cargo-only planes, but that means fewer options for shippers.

To sum it up, despite the advantages that air freight has to offer, some shipments are simply better suited—or only suited—for ocean freight.

 

If you’re looking for options for hard-to-ship materials, reach out to one of our experts! We’ve been moving all kinds of freight to Guam since 1991, and we can get your cargo to the island, safely and affordably.

Choosing the Right Mode of Transportation

For certain shipments, air freight is the perfect solution with plenty of advantages. For others, ocean freight is the way to go. However, now that you have a deeper understanding of Guam air freight, you’re perfectly positioned to decide which one is right for your business—and your budget.

 

If you’re moving freight to Guam, our experts would be happy to help! We offer air freight and ocean freight solutions to Guam, depending on your needs and your budget. Reach out for a free quote, and we’ll be in touch.

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8 Innovative Ways the Freight & Logistics Industry Leverages AI https://www.approvedforwarders.com/ai-in-freight-logistics/ https://www.approvedforwarders.com/ai-in-freight-logistics/#respond Mon, 11 Sep 2023 06:35:07 +0000 https://www.approvedforwarders.com/?p=7462 Complex, interdependent processes. Tons of historical data. A constant drive to create efficiencies and reduce waste. These characteristics of the freight and logistics industry all set the stage for significant impact from artificial intelligence technology.   As you might expect, AI technology is first and foremost assisting many freight and logistics companies with supply [...]

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Complex, interdependent processes. Tons of historical data. A constant drive to create efficiencies and reduce waste. These characteristics of the freight and logistics industry all set the stage for significant impact from artificial intelligence technology.

 

As you might expect, AI technology is first and foremost assisting many freight and logistics companies with supply chain optimization.

15%
improvement in logistics cost

Data from management consulting firm McKinsey & Company revealed that companies using AI for supply chain management have improved their logistics costs by 15% and their service levels by 65% in comparison to peers who didn’t adopt these technologies.

Beyond supply chain optimization, the freight and logistics industry is also leveraging AI in increasingly innovative ways. Driver health, employee development, and customer service are all areas in which AI technology has made an impact. Given the technology’s ability to solve problems and make decisions in ways that feel surprisingly human, these “softer” AI applications feel almost natural.

 

Below, we’ll take a deeper dive into eight ways that AI technology within the freight and logistics industry is creating efficiencies, solving problems, and even promoting mental health.

Fully Autonomous Sales & Operations Planning Drives Revenue Increases

As a McKinsey & Company report revealed, integrating a company’s supply chain from end to end opens the door for fully autonomous planning, powered by AI. In other words, when an integrated system gathers data from events occurring up and down the supply chain, forecasts can be tweaked, supplies ordered, and production schedules adjusted (and more!)—all without the intervention of a human being.

4%
revenue increase

After studying large, Asia-based consumer packaged goods companies, McKinsey quantified the benefits from fully autonomous planning. Their data revealed revenue increases of up to 4% and decreases in supply chain costs of up to 10%.

However, 80% of the consumer packaged goods companies that McKinsey talked to were still using traditional sales and operations planning procedures—often because they lacked the necessary end-to-end integration. Ultimately, only 7% of the surveyed companies used real-time optimization across fully automated digital systems in their sales and operations planning.

 

As hard data continues to emerge supporting the benefits of fully autonomous sales and operations planning, more companies will likely make the investment—and turn over their planning processes to AI.

Route Planning Reduces Mileage & Emissions

To increase efficiencies, reduce fuel costs, and lower emissions, UPS developed ORION (On-Road Integrated Optimization and Navigation) route-optimizing software. The platform’s goal? To leverage predictive algorithms in concert with UPS’s tracking systems to create better routes than human drivers could develop on their own.

 

At first, the idea was a hard sell. Could an algorithm truly create outperform an experienced driver with years of experience on the road?

100m
miles saved per year

Ultimately, the answer was yes. In the first eight years of its deployment, ORION saved about 100 million miles and 10 million gallons of fuel per year. UPS anticipates even more savings as the technology continues to improve. More recent upgrades to the system have added real-time updates for drivers in transit, based on changing road conditions.

In addition to using ORION for route planning, UPS also uses the system to predict future package volume so they can adjust capacity accordingly, saving more than 85 million miles driven per year.

Chatbots Deliver 24/7 Customer Service

Love ’em or hate ’em, chatbots are becoming increasingly prevalent in logistics applications.

 

Take, for example, DHL’s chatbot, “Marie.” If you’ve got a relatively simple question, Marie can assist. The AI technology powering Marie allows her to field plain-language requests at all hours of the day. For example, if you need to know the status of a package en route, Marie can assist. More complex requests ultimately get passed off to a human customer service representative.

 

Other logistics companies have also hopped on the chatbot bandwagon. DB Schenker has “Betty,” their digital assistant who helps with tracking questions 24/7.

XPO is using their AI chatbot technology to facilitate last-mile service. Their chatbot makes automated phone calls to customers, leveraging real-time Google Maps data to confirm the exact timing of their delivery. It also diverts drivers when customers aren’t home to receive their packages, resulting in both fuel and emissions savings.

Mobile App Monitors Driver Health to Improve Safety

While startups launch pilots for autonomous robot deliveries in Europe, other startups are looking at ways that AI technology can assist human drivers still behind the wheel.

 

The AI Mood Mobile Application, an AI-based predictive mood tracking mobile application, was designed to help identify early signs of stress among courier drivers. The app was created through a partnership between SalesChoice, an AI SaaS startup; Purolator, a courier and logistics company; and Ontario’s Autonomous Vehicle Innovation Network.

 

The app monitors drivers for signs of stress, which can lead to higher road accident rates. The app got its first road test in 2022, during a pilot program that involved 125 drivers. That data will be analyzed to determine the scalability of the program, and its effectiveness in impacting health and safety targets.

AI Spearheads Employee Development & Promotes Retention

Kuehne+Nagel’s AI technology picks up where employee job boards end.

Rather than leaving it to their staff to peruse internal job listings for advancement opportunities, Kuehne+Nagel, a global logistics company, uses the power of an AI-driven internal talent mobility platform to nurture retain its 82,000 employees worldwide.

 

In addition to delivering tailored career content, the platform also serves up customized job recommendations from Kuehne+Nagel’s internal job board. It even offers tailored professional development suggestions to aid employees in their advancement through the company, promoting retention in a competitive job market.

 

AI Facilitates Smart Picking Solutions in the Warehouse

Picking can be one of the most labor-intensive parts of a warehouse operation, making it a ripe target for automation.

 

If there’s only one type of item in the warehouse, automating that process is one thing. However, most businesses have a warehouse full of items that vary in size, shape, and even color. (Talk about a challenge!)

 

Enter Fizyr’s deep learning algorithms. The technology proposes more than 100 grasp poses each second to handle items of varying size and shape. See this fascinating tech in action below:

 

 

Fizyr’s software has been deployed across several industries, including e-commerce, retail, food, manufacturing, and more. Ultimately, technology like Fizyr’s opens the door for automated picking of all types of items, which is poised to revolutionize warehousing going forward.

Digital Twins Model Solutions and Anticipate Challenges

Simply put, a digital twin is a virtual representation of a real-world system. For example, a company might make a digital twin of its warehouse or its entire supply chain.

 

A true digital twin, as defined by DHL research:

  • Is a virtual model of a real “thing.”
  • Simulates both the physical state and behavior of the thing.
  • Is unique and associated with a single, specific instance of the thing.
  • Connects to the thing, updating itself in response to known changes to the thing’s state, condition, or context.
  • Provides value through visualization, analysis, prediction, or optimization.

Given those conditions, a digital twin powered by machine learning technology can offer a number of benefits, including:

  • Proposing new workflows and testing them in a virtual setting to determine the most effective solutions before making changes in the real world.
  • Identifying more efficient warehouse layouts for improved storage and retrieval.
  • Running worst-case simulations to test the resilience of the system so supply chain managers can better prepare for challenges.
  • Predicting future scenarios based on incoming data from connected devices, sales dashboards, warehouse management systems, inventory management systems, supplier data feeds, and more.

Of course, building a true digital twin that’s integrated end-to-end with all available systems means a significant cash outlay. However, considering these benefits—and the insights that machine learning can deliver—some companies may deem it a worthy investment.

Dynamic Pricing Responds to Changing Conditions

Airlines are using it. Hotels are using it. And dynamic pricing, powered by AI, may come to LTL shipping sooner than many people think.

 

Airline and hotel revenue management systems leverage an algorithm to set fares in real-time based on factors like capacity and demand.

 

LTL pricing, in contrast, has been relatively static throughout its history. However, AI-powered dynamic pricing—similar to that leveraged by other industries—may soon arrive on the LTL scene, adjusting pricing based on client profiles and market conditions.

 

For now, it’s all speculative. However, if (when?) it arrives, dynamic LTL pricing will mean a big change, one that will mean an adjustment for many companies.

AI Technology in Freight & Logistics: Potential and Possibilities

The recent explosion of interest in AI technology means that even more applications will pop up in the freight and logistics industry in coming years. Expect continued innovation as this emerging technology moves beyond supply chain optimization into further applications in sales, marketing, human resources—and beyond.

 

Looking for new ways to optimize your freight and logistics? Our experts would be happy to help. Reach out for a complimentary consultation to get started.

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