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SHIPPING DEPARTMENT
Logistics Management
Cargo Insurance
Container capacity, pallets, pallet orientation, palletized cargo, unitizing, unitization, unitized loads, demurrage, loading equipment, inspecting containers, container inspections, dunnage, stowage.
container stowage, chassis, bogie, belt conveyors, roller conveyors, container packings, export corrugated cartons, export wooden cases, export boxes, export bales, container dimensions, import-export packings, import packs.
export packages, import packages, import-export drums, bags, wooden cases, wooden crates, shipping pallets, pallet stowing.
packing orientation, package orientation, TEU, twenty-foot equivalent unit, CBM, cubic measurements, knots, cellular container ships, multimodal transport, combined transport bill of lading, through bill of lading.
Unitizing, unitization, unitized loads, demurrage, loading equipment, inspecting containers, container inspections, dunnage, stowage, container stowage, chassis, bogie, belt conveyors, roller conveyors.
container packings, export corrugated cartons, export wooden cases, export boxes, export bales, container dimensions, import-export packings, import packs.
export packages, import packages, pallets, pallet orientation, palletized cargo, import-export drums, bags, wooden cases, wooden crates, shipping pallets, pallet stowing.
packing orientation, package orientation, TEU, twenty-foot equivalent unit, CBM, cubic measurements, knots, cellular container ships, multimodal transport, combined transport bill of lading, through bill of lading.
Marine insurance, cargo insurance, import-export insurance, insurance coverage, insurance documents, insurance terms, insurance claims, credit risk insurance, credit risks.
insurance policy, insurance cover note, open insurance policy, blanket insurance policy, floating insurance policy, specific insurance policy, voyage insurance policy, strikes riots civil commotions.
inherent vice, jettison, piracy, all risks, A.R., with average, W.A., free of particular average, F.P.A., insurance agency, insurance agents, insurance agencies, insurance certificates, insurance policies.
insurance endorsements, insurance premiums, insurance forms, Institute Cargo Clauses, Institute War Clauses, Institute Strikes Clauses, insurance application-instructions, insurance clauses, contingency insurance.
marine surveyors, adjusters, insurance adjusters, survey certificates, loss certificates, subrogation form, subrogation, particular average claims, general average claims, warehouse clause.
BL, B/L, bill of lading, customs declaration, shipping instructions, ocean bill of lading, marine bill of lading, shipping booking, transport documents, shipping marks.
Waybills, master air waybill, MAWB, HAWB, house air waybills, road waybills, rail waybills, post receipts, courier's receipts, forwarder waybill, freight forwarder's waybill, clean air waybill.
foul air waybill, unclean air waybill, dirty air waybill, claused air waybill, road consignment notes, rail consignment notes, postal receipt, parcel post receipt, certificate of posting, expedited delivery services.
postal shipments, courier shipments, TEU, twenty-foot equivalent unit, knots, cellular container ships, multimodal transport, combined transport bill of lading, through bill of lading, CBM, cubic measurements.
Containers and shipping information such as container dimensions, container capacity, container rating, tare mass, payloads, container tare mass, container payload, general purpose containers, dry cargo containers.
reefers, refrigerated containers, tare weight, tares, container markings, container classifications, half height containers, TEU, twenty-foot equivalent unit, knots, cellular container ships, CBM, cubic measurements.
container services, standard containers, hicube, high cube containers, cargo cubes, global shipping, import-export shipping, logistics, logistics management, logistics supports, shipping space, shipping order, S/O.
shipping permits, shipping notes, dock receipts, master ships, mother ships, feeder vessels, transhipment, transshipment, transit shipment, dead freight, seaports, ports.
freight forwarders, consolidators, freight consolidators, customs brokers, customs forwarders, brokers, customhouse brokers, customs house brokers, voyage, flight.
groupage operators, shipping operators, shipping firms, shipping company, air shipping, ocean shipping, carriers, freight company, transport company, ETA, ETD, ETS.
transportation, transports, ocean shipping company, freight containers, couriers, airlines, tariffs, custom tariffs, shipping dangerous goods, shipping schedules.
air containers, ocean containers, shipping containers, container load, LCL, full container load, FCL, marine insurance, cargo insurance, import-export insurance.
NVOCC, nonvessel operating common carriers, NVO, nonvessel owner carriers, nonvessel owning carriers, ocean freight consolidator, steamship.
Maximized Use of a Container Capacity
The essence in maximizing the use of a container capacity is to stuff the most cubes (i.e., largest cubic measurement) into a container that would give the lowest freight cost. If the capacity of a container is 1,170 cu. ft., it does not mean that the exporter must (or can) fully stuff it up to 1,170 cu. ft.. This can seldom be done due to the restrictions imposed by the kind of cargo and the type and size of the export pack.
The freight cost per cubic unit generally is lower when more cubes are stuffed into a container. However, when the total cube is too close to the container capacity, unloading and reloading of container may happen. The cost of extra time and labor spent on unloading and reloading usually is much more than the unit cost of freight saved for stuffing in more cubes. It would be fortunate if there is no cargo overflow---a situation where some export packs cannot fit into the container because the remaining space does not accommodate the size of the packs. The recommended load volume provides a guide in calculating a full container load (FCL), which helps in avoiding cargo overflow.
Case Sample:
Container Selection (2)
In cases where the importer uses his/her own consolidator in handling the delivery in an FOB sales term, the exporter may not worry about maximizing the use of a container capacity. For example, assuming that in the Case Sample: Container Selection (1) the importer orders 665 cartons of product DX at FOB price and will let his/her own consolidator, which is located in the importer's country and has an office in the exporter's country, handle the forwarding. The consolidator, knowing that the cargo is product DX but not knowing the total weight and cube of the proposed consignment, may quote the importer as follows:
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The above quote includes the ocean freight and the inland freight and handling charge in the importing country. The brokerage fee and customs duty in the importing country are on the importer's account.
The cube of 665 cartons is 997.5 cu. ft. (i.e., 665 cartons x 1.5 cu. ft.) or 28.25 CBM. The total freight in the LCL (less container load) is US$1,836.25 (i.e., 28.25 CBM x US$65; please see the explanations in the Case Sample: Weight or Measure), while in a 20' container is US$2,145.
In such a case, the exporter does not have to worry about maximizing the use of a container capacity.
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Palletized Cargo in Container Shipments
The Table: Pallet Count below gives an idea of the number of pallets a standard dry cargo container can accommodate, assuming that each pallet is stacked with cargo to 4.5' high and each pallet itself is about 5.5" high (or the total height of each loaded pallet is about 5 feet).
To show the gross weight (Gr. Wt.) of each pallet, it is assumed that the acceptable maximum payload to consignees in a 20' container is 17,500 kgs. and in a 40' is 24,000 kgs..
Table: Pallet Count
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The  indicates the more frequently used pallet size in the export shipments.
It is apparent from the Table: Pallet Count that the palletized cargo leaves a lot of excess space, considering that the capacity of standard container in a 20' is about 1,170 cu. ft. (33.131 CBM) and in a 40' is about 2,385 cu. ft. (67.535 CBM). Therefore, if the palletized cargo is light, the freight cost per cubic unit in a container is high.
The moving and static load capacity of a pallet may vary considerably. For safety reasons, limit the weight of the palletized load to 1,000 kgs. (2,204.6 lbs.).
The packing (loading) of a container generally is faster when the cargo is palletized. However, the loading of palletized cargo can be time consuming if the loading equipment, such as forklift and pallet truck, cannot enter the container (please see Packing (Loading) and Emptying the Containers for related information).
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