Container Shipping – How It Works and Where to Find a Freight Forwarder

The container shipping industry has existed since the 1950s, but it was in the 1960s that it became standardized. In 1967, the International Organization for Standardization (ISO) published the first edition of the ISO 8700 standard. This document outlined the requirements and how movers could use them.

In 1972, the United Nations adopted the UN Convention on Containers, which defined the term "container." The World Trade Organization adopted the WTO Rules on Containerized Transport a decade later, and these rules set out the standards for international trade and commerce.

Today, there are three main types: 20ft equivalent units (TEU), 40ft TEU, and intermodal ones.

Intermodal ones are designed to carry both cargo and passengers. They are often called double stackers because they can hold twice the amount of goods compared to single-stack.

What Are Containers?

Strong metal boxes called containers are used to move commodities worldwide. They are usually made of steel and designed to withstand long journeys, allowing them to easily haul by rail, road, and sea.

Standardized ones have transformed the global industry, making it possible to move large quantities of cargo around the globe quickly and efficiently.

The approximate $3 trillion worth of trade that moves through our system every year could be transferred within 24 hours if we had standardized ones .

Full Load (FCL) vs. Less than Container Load (LCL)

The obvious answer is that you should ship full loads (FCL) when you have enough stuff in each one to fill it up and use less-than-container load (LCL) otherwise. But this is only partially true. There are several factors to consider here.

From a financial perspective, a fully loaded one is typically cheaper than a partially loaded one.

For example, a full container costs about $1,500-$2,000 per twenty-foot equivalent unit or TEU (20ft x 8ft), while a partial load costs about $1,200 per TEU. So a full one is usually cheaper than a partial load.

However, there are two other factors to evaluate. First, LCL has much longer transit times than FCL. For example, a 10,000 TEU takes about four days to travel from China to the US West Coast via FCL, and a 20,000 TEU container travels for around six months via LCL.

Second, LCL requires additional handling charges. Again, these vary depending on where you're sending the goods; generally, they range anywhere from $400 to $600 per receptacle.

What does all this mean? Pack everything into a full one if you have a lot of stuff to send. Otherwise, don't worry too much about whether you're moving LCL or FCL. Just make sure you're getting the best possible price.

What Is a Cargo Mover?

A logistics expert who offers various supply chain services is known as a forwarder. They plan the hauling of commodities from one location to another.

This arrangement includes arranging ocean or air freight, inland method from origin and destination, preparation of documents, warehousing, and storage services.

The term "forwarding" came about during World War II when it became necessary to haul large quantities of supplies across oceans.

At the time, there were no established lines, so companies had to contract out the job to individuals who could do it better. These people were called "agents."

What Does a Hauler Do?

Because they offer comparable services, forwarding firms and haulers are frequently mistaken for one another. There are important distinctions between the two, though.

A freight forwarder represents a middleman between a mover and a carrier, and they act as a liaison between the two parties and help facilitate movement.

While movers handle shipments and move them worldwide, it's vital to understand what they don't do and how they work.

For example, while forwarders handle loads from place to place, knowing that someone else moves goods is essential.

There is one golden rule to keep in mind regarding sending: they are not moving cargo. Instead, they're representing intermediaries.

Pros and Cons

Sending is an easy way to save money on costs. However, before signing up for a service, you must know what you're getting yourself into.

There are several different types of companies out there. Some focus solely on domestic shipments, while others specialize in international trade. There are even those that provide both options.

The most common type is called consolidating freight. This consolidation involves taking multiple shipments from one mover and combining them into one package. These packages are then sent to another carrier for delivery.

Another option is called door-to-door delivery. In this case, the customer sends the goods directly to the recipient. Door-to-door delivery usually requires a signature upon receipt.

A third option is called full truckload shipment. It involves sending a single container to the destination location. Once the container arrives, the driver unloads the contents onto a trailer and drives away.

While each of these methods offers competitive pricing based on services needed by a client, there are drawbacks to consider. For example, consolidators often charge extra fees for services such as customs clearance.

Full truckloads require a lot of upfront capital, and a customer must purchase it, pay for insurance, and hire a truck.

Additionally, the buyer is responsible for ensuring the items will fit in it. If the item is too big, it could harm the container itself. On the other hand, if the item is too small, it might not fill up the space allotted.

If the customer doesn't have enough room to store the item, they can rent storage space instead. Although this choice costs more than a receptacle, it has greater flexibility.

Where to Find Him

To find a hauler, you must first identify your needs. Next, you'll want to determine whether to move products domestically or internationally.

Once you've determined which method you'd like to use, you'll need to look for a company specializing in that area.

Referrals

You will want a company that provides quality service at a fair price. The best way to find a reputable company is through referrals.

Ask friends, family members, and colleagues who have used a specific company.

Considerations for Choosing

1. Experience: When looking for a forwarder, ask about their experience with the industry. A good company should have many years of experience under its belt.
2. Flexible payment: In addition to experience, look for a company that offers flexible payment plans. For example, many companies offer discounts for customers who pay in advance.
3. Get more than one quote: To get the best deal possible, make sure to shop around. Compare prices and terms offered by various companies.

Conclusion

Freight forwarding is a great way to save money on costs. However, it comes with its own set of challenges.

Before choosing a company, know exactly what you need before signing up. You should also be aware of the pros and cons of each method and the requirements needed to haul internationally.

One of the uses of moving is to move internationally. This process can be challenging with several considerations. For example, where it's delivered from, what documents are required, and the time needed to haul.

Here is where knowing the right company is an expert in the industry can be helpful. An expert transporter will know how to navigate the process and take care of everything to ensure your shipment arrives safely.

A1-AT can assist you there. We can dispatch cars and other vehicles via ocean freight and offer a comprehensive moving service. Thanks to our global network, nowhere is out of reach.

Get a free quote today or call us at 1-888-230-9116 to learn more about sending cars abroad via moving.