PCB Freight Management’s logistics blog is a valuable resource for shippers, carriers, industry professionals and other supply chain partners navigating global trade. With the many regulations governing trade, it aims to help readers lower their freight costs, increase shipping efficiencies, address industry issues and manage their logistics activities. Several leading experts serve as blog columnists covering topics from freight, compliance and transportation to 3PL trends and warehousing.

Carrier Freight Contracts And Matters Affecting Performance

Baseball | Matters Affecting Performance

It is important you read the fine print and are happy with the terms of agreement you make in the freight forwarding process. This includes Matters Affecting Performance which you will find on many carrier’s Bill of Lading.

MLB Makes An Unusual Request

It was a most unusual request even for the most seasoned transportation professional. In the summer of 2002, an official from Major League Baseball asked a container carrier if they could send a helicopter out to a ship anchored in the Port of Los Angeles to remove a container from the ship. The container was packed with promotional goods for the all star game taking place in Milwaukee, Wisconsin. If the product wasn’t there in time, it was worthless. The ship was at anchor in the port along with dozens of others due to a work slowdown caused by a contract dispute between the Longshoremen’s Union and the Maritime Employers Association. The shipping line was not able to assure Major League Baseball that the container would be off the ship in time for the All Star Game, despite receiving the cargo well in advance of the scheduled arrival date. Had all gone according to plan, there would be no talk of helicopters rescuing freight. A rescue that would have been completely at the expense of the importer, not the carrier.

Matters Affecting Performance

Many shippers do not realize that when they contract carrier services. The carrier is under no obligation to complete the terms of the contract if there are extenuating circumstances preventing them from delivering the goods. On the back of most ocean bills of lading is a clause that outlines Matters Affecting Performance. Here is the terminology used on the bill of lading from a major container carrier: Without prejudice to any rights or privileges of the Carriers under covering Bills of Lading, dock receipts or booking contracts or under applicable provisions of law, in the event of war, hostilities, warlike operations, embargoes, blockades, port congestion, strikes or labour disturbances, regulations of any governmental authority pertaining thereto or any other official interferences with commercial intercourse arising from the above conditions and effecting the Carrier's operations, the Carriers reserve the right to cancel any outstanding booking or contract of carriage. At carrier’s option, cargo in transit may be enrouted to a different discharge port or destination for cargo delivery. Any additional cost associated to this arrangement shall be for account of cargo.

Shippers Must Be Prepared

Shippers should take careful note of the wording particularly as it includes port congestion and strikes. At what point does congestion in the Port of Vancouver become so great that the carrier will invoke the clause? Would a rail strike cause shippers to pick up their cargo in Seattle, or even Prince Rupert? The risk to the shipper is added costs and delays, and perhaps as was the case with Major League Baseball, perishable promotional goods possibly missing their delivery date. In the end, Major League Baseball absorbed the costs of trucking containers over 2,000 miles from Los Angeles, California to Milwaukee, Wisconsin. An unexpected but necessary expense to get all of the all star game memorabilia to the fans attending the game.

You Have A Helping Hand

The world of international freight can have many twists and turns. You can be prepared with the help of the experts at PCB Freight Management. Contact us for all your freight forwarding and logistics needs.

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How The Ocean Freight Industry Learns From The Past

Strict ocean freight carrier policies in effect today are born from monumental and sometimes dangerous mistakes from the past.

ocean freight container ship tugboat

Verified Gross Mass Policy

A great example is the Verified Gross Mass (VGM) policy. Ocean freight carriers require all containers to have their weights verified prior to loading any vessel. This applies to all ports worldwide. Certain ports have their own policies stating they will not accept any containers without the VGM data. Shippers have two options. One, weigh the containers on their premises, prior to and after loading. Or two, have the loaded containers verified at a certified scale before returning to the terminal. This increases the costs of each additional container move, as well at time. The questions is, how did the ocean freight industry get to the point where strict policies are the norm? The answer lies in the old adage those who do not learn from history, are destined to repeat it.

How The Ocean Freight Industry Learned From The Past

Once upon a time, the rate for ocean freight commodities (lumber, metal scrap, waste paper, etc.) were rated by weight, usually metric tonne. There was little incentive to misidentify weights since carriers charged by what was loaded into the shipping container. To prevent shippers from loading one or two metric tonnes into a container and shipping a full box at a reduced rate, carriers charged a minimum tonnage on each box (i.e. 21 revenue tonnes). It did not take long for shippers to declare exactly 21 metric tonnes on all shipments irrespective of the real weight in the actual container. In the early 90s the inevitable happened in the port of Vancouver. A container of green lumber declared at 21 metric tonnes had the floor fall out when it was being loaded onto the ship.  Fortunately, no one was hurt, but the terminal shut down operations and refused to load the remainder of the ship until all weights were verified from each shipper. The ship cut and run without the rest of the load causing a stir among the ocean freight community.

The Short Term Solution

After the incident an investigation was held to determine how it could be prevented going forward. The carrier decided to arbitrarily stop offering rates by metric tonne and began pricing on a per container basis, thereby eliminating the incentive to cheat on weight. Other carriers followed suit and the problem was solved. At least that was the general opinion of the industry leaders at the time. Unfortunately, as time would tell, they made a poor decision. Due to the advances in container structure and the use of alloys, new and advanced containers allowed for greater weights in the same sized box. As a result, shippers pushed the limits and inevitably more boxes were involved in accidents. Some with catastrophic results.

Yesterday’s Mistakes Save Lives Today

In 2016, the International Marine Organization (IMO) amended the Safety of Life at Sea (SOLAS) rules to include stricter enforcement of VGM. This not only eliminated the risks of carrying overloaded containers, but it also set the bar higher creating standards and an overdue discipline that was greatly needed in the ocean freight industry. It is safe to say the mistakes of the past created a precedence for carriers to make the necessary changes to potentially save many lives today and in the future.

You Have A Helping Hand

If you need help moving freight by ocean, air, highway or rail, PCB Freight Management can help provide you with excellent service from our logistics experts. Contact us today for a quote on your next freight shipment.

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Shipping Perishables By Air & Ocean Freight

Fresh Produce

Are you shipping perishables? It is a scary job which makes many people anxious. The risk of losing perishable goods in transit can translate to lost revenue, can tarnish the actual quality of your goods and can create angst among your customers. Advancing technologies have provided you with many different options to ship your perishable goods around the globe. Whether you are shipping perishables by air, shipping perishables by ocean or shipping perishables by ground, the trusted experts at PCB Freight Management can provide you with experienced logistics solutions.

How are Your Perishables Packaged?

Packaging is an important factor when shipping perishable goods. Packaging can be the difference between your perishables being top quality for your customers or having potential customers looking for alternatives. Choosing and testing the right type of packaging before shipping your perishable will protect you and your goods from spoil. If your goods are packaged properly, they will take up less space, reduce your liability, and most importantly, make you money. An experienced logistics provider can assess your current process and  optimize your packaging. A packaging provider can also offer prototypes and packaging alternatives tailored to you and your products. This can be accomplished by designing an effective packaging solution for all of your products.

Shipping Perishables by Air Freight

The next question you have to ask yourself is, what is the best mode of transportation for my perishables? With knowledge of your products this will be an easy step to determine what will be the best option for shipping your goods. If your main factor is time, than air freight is right for you. Air freight allows you to get your perishables in front of your customers the fastest. This ensures the quality of your food is high and the shelf life of your products is extended. Retailers will not have any problems selling your goods and your B2B relationship will grow and prosper. All perishable goods must be shipped to market quickly, which is why air freight is the most common mode of transportation for perishables. Air freight will be more expensive than other options. A cost benefit analysis will help you decide whether having your goods fresh for your customer with a long shelf life will pay off more than any other mode of transportation.

Shipping Perishables by Ocean Freight

If your perishable goods have a longer shelf life, ocean freight may be the best option for you. Using ocean freight to ship perishables is becoming more common thanks to improving technologies. This includes refrigerated containers with controlled atmospheres, suited to ship perishable goods overseas. Refrigerated containers have improved over the years, becoming more efficient and are therefore a realistic way for you to ship your perishables. This is where knowing your product is vital. If your perishables can wait, ocean freight will be the less expensive option. Couple this with better container technologies and ocean freight opens up more options to ship your freight at competitive rates.

Shipping Perishables | Air Freight vs. Ocean Freight

While this is seen as an advancement in shipping perishables, ocean freight is still not risk free. As time is a main concern for fresh perishables, businesses are trending towards using air freight to ensure their high-quality goods are delivered fresh to their customers. It is very important you consider the shelf life of your product when choosing your shipping method. You also have to consider port congestion, which has added further complications to the decision whether you should use air freight or ocean freight. Because time is so important to shipping perishables, many are choosing air freight to mitigate the risk of spoilage.

By Your Side | The Experts at PCB Freight Management

Decisions must be made when deciding on what is the best way to ship your freight. They all have their costs and benefits. Air freight is the quickest yet most expensive option. Advancement in shipping containers makes ocean freight a possibility for perishables. No matter which mode of transportation you choose, the experts at PCB Freight Management can help. Our air freight, ocean freight and ground freight teams are always available to provide you with assistance on all of your shipping needs.

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How Smart Importers use Multiport Strategy to Mitigate Freight Risk

Containers Stacked In Port

In March of 2012, a Senior VP of supply chain made his first trip to Vancouver. He appreciated the March break from the East Coast winter. However, his purpose was to find a solution for his shipping problem. He needed to get over 100 40’ containers off of the Vancouver port and to their U.S. destinations.

The Freight Problem

The containers were grounded and stuck due to massive congestion caused by the longshoreman strike affecting the U.S. West Coast ports. Thousands of additional containers were discharged in the ports of Vancouver during the two-week job action, causing the port to become overwhelmed. Eventually, terminals stopped discharging ships to avoid making a bad situation much worse.

The Freight Solution

At the time the executive surmised that moving forward, it would be a good idea for his company to spread their 25,000 plus containers from Asia per year over a greater number of ports. The very next year, in addition to routing over U.S. South and East Coasts, they routed over Vancouver to reach U.S. West Coast and Midwest markets. Transit times were comparable and acceptable.

The Benefits of Using Multiple Ports

By spreading their ocean freight shipments over several ports, the company reduced dwell time risks, not only limited to recurring labor issues, but also due to congestion, rail car shortages, and bad weather. The greatest risk to any supply chain is having one of the links in the chain cutoff. A port strike, trucker disruption, or rail car shortage can turn into a nightmare for importers potentially costing hundreds of thousands of dollars in lost revenue and contractual fines. By building several and diverse links, you can manage your risk.

PCB Freight Management Can Help

Whether you ship 100 containers each year or 10,000, a well planned multiport strategy will reduce your risk. PCB Freight Management can assist you with all of your freight forwarding needs, including implementing a multiport strategy to mitigate your freight import risk.

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Why Cargo Insurance Could Save You Against General Average Loss

Container Ship

Anytime you deal with international freight, you assess the risks and make important decisions to keep you and your cargo safe. Which carrier do you choose? Will there be delays? Which Incoterms® is best? Do you obtain cargo insurance? Does my cargo insurance cover General Average? These decisions all carry risks, some more costly than others. In this blog, you will take a look at shipping insurance and how shipping insurance can protect you against General Average loss. On March 6 2018, tragedy struck a Maersk Line container ship. Dangerous cargo started a fire onboard and five members of the crew passed away. To compound this, less than 10 days later another fire broke out in a container on a smaller Maersk container ship.

General Average Loss Cases

The world’s largest container shipping company has had two fires on board their vessels in the past two weeks. This has become a trend that has shippers looking to mitigate the risk of placing their goods on a ship without cargo insurance. The scale of the problem is what’s frightening. Fires are becoming more and more commonplace on container ships. Last month there was a container ship fire off the coast of British Columbia, Canada. Another fire broke out in April of last year off the coast of Sri Lanka. February of last year there was another fire off the coast of South Africa due to hazardous material. Insurance companies are expecting hundreds of millions of dollars worth of claims.

What is General Average and Who Can Claim General Average?

On the recent container ship fire Maersk has declared General Average. The shipping line appoints General Average to cover the cost of the damage to the vessel. It is a process where the party who incurs a loss or extra expense (the shipping line) is re-compensated by the contribution of those parties interests that have been saved (the other companies who have cargo on the vessel).

When is General Average Declared?

The shipping line will asses the damage and arrive at a total cost of repair or loss. They will then allocate this cost among the companies which had cargo on the vessel, regardless of whether their goods caused the damage or not. If no insurance has been organized, then a cash deposit will be needed before your shipment will be released by the shipping line. To safeguard yourself from loss it is important to set yourself up with an all risks policy. Some shippers do not realize that not all policies cover General Average. This can be especially painful to a shipper who thinks their policy covers them, only to discover they do not have an all risks policy that will cover General Average. PCB Freight provides shippers solutions by only offering AAA rated insurers that can guarantee you will be covered for all policies, including General Average. This shows why it is important for shippers to insure their freight. Companies throughout the supply chain work hard to make sure your goods arrive safely, but things happen. You never know how, why, or when an unforeseen circumstance could put you on the hook for General Average. Save yourself the risk and make sure you have the proper international insurance to save you from disaster. It could save your business. To have PCB Freight Management help you with your next shipment, including cargo insurance, please click on the "request a quote" button below to get an experienced, trusted, expert on your side.

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Two Cranes - Two Ports - Two Oceans - One Final Destination, Lima Peru!

PCB Freight Cranes to Lima Peru

If that sounds like a great adventure - it certainly was! When we take on a project, we aim for excellence and we also aim to enjoy the work as it is performed as much as possible to offset the often grueling requirements.

Two Cranes

This a story about a recent mining project in Lima, Peru. We were contracted to support the delivery process of two additional mobile cranes. That doesn’t sound too out of the ordinary - until you get into the terrain. The reference to two oceans is because one crane shipped from New York, across the Atlantic - via the port of Baltimore; and the second crane crossed the pacific, from Vancouver - via the port of Tacoma - courtesy of PCB Freight Management Ltd. and RoRo Vessels. We specialize in Ocean Freight and look forward to sharing some of the many, seemingly impossible, and always full of adventure deliveries we have been involved in. Everything from Circuses to Olympics! We are proud to have partnered with this successful venture in particular and look forward to new challenges ahead! Big Projects, Big Challenges - Big Solutions! PCB Freight Management Ltd. Project Division - call us 24/7 at 1-866-535-4038 or Email us at [email protected] PCB Freight Management now offers online tracking for your shipments! Visit our website: and click on "Track a Shipment" for the current status of your shipment. Thank you for using PCB Freight Management for your transportation needs! "We are your Air, Courier, Ground, Ocean & Project Solution!"

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