Archive for November, 2013
Infrastructure in America: What Do You Think?
Being active on my company Facebook account, I see a lot of talk about crumbling infrastructure in the US. This is obviously not a situation where bridges are failing left and right here in the US as we would see that in the news, but it seems to be just a matter of time before we are in a situation where we need to spend huge amounts of money to bring our airports, roadways, and railways back up to a safe zone.
And what does this mean for traffic safety? Will there be an increase in the amount of road construction we see when our country finally fixes these issues? Or will we resort to simply building new highways next to (or above) already existing highways? We know the headache and delays construction can cause.
On another note, there must be a reason this is not getting as much attention from the president as it should. Do you think this is because there are more pressing issues on the table? Read: obamacare, military defense, education. Or maybe the president actually doesn’t even consider this an issue? What are your thoughts? Feel free to leave them below.
Shopping for the Lowest Shipping Rate
I would like to spend our 250th blog post talking about how to get the lowest possible LTL (less than truckload shipment that comes on a pallet) shipping rate on your order. And this can apply to anything you buy, from anywhere. The first step is making sure your supplier is getting quotes from at least 5 different shipping companies. The second step is to make sure their shipping accounts are in good standing. You will never know for sure if they are getting good rates, but as a general rule of thumb the bigger the company, and the longer than they have been around, the better their rates are going to be.
The discount rates that freight companies give to a supplier can be very significant. For example, shipping 150lbs of traffic delineators from one of my suppliers to the same location can be $100 in one instance, and $250 in another simply due to the account of the first supplier being heavily discounted. If you seem to have a case where the supplier’s account is coming up with very high numbers, search for a freight broker. The first one I found gave me rates as low as half what my supplier was getting. They can be easily found with an online search.
If you want your products shipped to a residence this could add $50-$75 to your shipping rate, as these freight companies like to exclusively ship to business addresses. If you have a commercial address you can ship to near by (maybe a friend or family member) you can avoid the extra fee.
If you don’t have a forklift or loading dock to accept the shipments, most freight drivers will let you jump on the truck to unload the shipment by hand. Be careful, because the second they use their equipment or help you unload it by hand, you could see a fee added on to your shipment.
Also, although it may be obvious to some, the weight and distance the shipment is going plays a significant role in the rate. If you want your product (say a traffic drum or delineator) to have a 20lb base, you are going to be paying for that extra weight. Going down to a 15lb base may be a simple solution to reducing the freight significantly. And if you can find a source that is closer to your delivery location you will also see the freight drop.
International Shipments
When we get customers that want their products shipped internationally, they typically have done it before and understand the process. But this is not always the case, sometimes it’s someone at the company that hasn’t imported an item before or the company has never done it before. It’s important to understand what’s needed to successfully ship an item overseas otherwise extra fees can occur.
The first order of business is to figure out if you want your products to go to a freight forwarder who will help import the items into your country. Most customers outside of the country (excluding Canada) have me ship to a freight forwarder in Miami or Long Beach, CA. You will have to pay this forwarder for their services, but it can help diminish the amount of headaches involved. Tip: make sure the supplier you are ordering from includes your company name somewhere on the address, ATTN: Your Company Name will help avoid confusion as to who’s shipment is it over at the forwarding company.
The second order of business is to make sure all your paperwork is in order. I would include three different copies of all paperwork normally included in your order. This could be the invoices, bill of lading, packing lists and more. Certain countries will make it harder to pass customs if you don’t have the proper information on an invoice. For example, not stating the origin of the ‘material’ was a real problem with one country I was shipping to.
The customs fees and taxes incurred from importing product typically comes right as the product is being imported so you are usually not pre-paying for this as you would for shipping charges. How much you pay will depend on the value of the goods, the country of origin of the goods, and the type of goods. It’s worth doing a quick search online to see what you are going to pay because no one likes a surprise when it comes to a bill!
For any other questions regarding the process, give us a ring (413) 281-6393 or contact us through our site www.trans-supply.com.