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In the maritime industry, there is a plethora of service providers that offer similar functions. For instance, two commonly used terms in the context of third-party logistics providers are non-vessel operating common carriers (NVOCCs) and freight forwarders. These service providers play vital roles in the logistics and transportation of goods globally.

Due to many similarities in the services provided by NVOCCs and freight forwarders, it’s common for people to need clarification on how they differ. In addition, both agencies are classified as Ocean Transport Intermediaries by the Federal Maritime Commission, which creates overlapping responsibilities such as cargo documentation, transportation, clearance, and tracking. As a result, it has become increasingly challenging to determine when to engage the services of either an NVOCC or a freight forwarder, making this a significant concern in the maritime industry.

Furthermore, both agencies do not run a carrier or any other freight transport vehicle. Despite the significant similarities between NVOCCs and freight forwarders, both agencies are quite different. And even though they both act as intermediaries between small businesses and shipping lines, they differ in how they operate.

How Do NVOCCs Operate

Non-vessel operating common carriers (NVOCCs) are entities that offer cargo transportation services that are comparable to those provided by shipping lines. However, the significant difference between NVOCCs and shipping lines is that these agencies are non-carrier operators. This means they do not own a vessel. Instead, they establish contracts with shipping companies that operate along predetermined routes and acquire space on their ships.

Typically, the agreements between NVOCCs and shipping lines outline various details, including the volume of business the non-vessel operator will provide within a specific timeframe. The NVOCC’s profitability is also considered when the shipping company determines the rate at which it will offer space on its vessels to the NVOCC.

Non-vessel operating common carriers (NVOCCs) are responsible for producing their own Bill of Lading (BOL). This legal document contains information about the cargo, including its type, quantity, and destination. In addition to their shipping-related duties, NVOCCs provide advisory and expert services to their clients on matters related to freight transportation. Furthermore, some NVOCCs offer storage and warehousing services to customers before shipment and delivery.

What Are Freight Forwarders

Freight forwarders are significantly larger and operate as representatives for both importers and exporters. They aid in building strong connections with numerous cargo carriers, including trucking companies, ocean liners, and airliners.

Freight forwarders manage shipping activities by handling various tasks such as transportation, documentation, and storage, but they differ from NVOCCs in that they act as agents for importers and exporters. Instead of buying space on a vessel, freight forwarders negotiate the most favorable transportation prices with shipping lines and determine the optimal route for cost and speed.

Because importing and exporting are complex processes that require significant paperwork, considerations, and procedures, they can be very challenging for individuals with little experience. Therefore, freight forwarders offer their services to handle all of these processes on behalf of their clients. This is perhaps why people sometimes confuse them for actual shippers.

Significant Contrasts Between NVOCCs and Freight Forwarders

We have now discussed the definitions and primary functions of both NVOCCs and freight forwarders. Although these agencies have comparable responsibilities, they are distinct entities. Therefore, examining and understanding the significant differences between the two agencies is crucial.

The most significant difference between NVOCCs and freight forwarders results from their mode of operation and associations with shipping lines, customers, and other cargo carriers. NVOCCs act as intermediaries between businesses and shipping lines and produce their HBL for the shipper. However, freight forwarders are authorized to manage all operations and make significant decisions on behalf of the shipper.

Here is a summary of some additional dissimilarities between these two agencies.

• Registered Associations

NVOCCs function as autonomous entities without formal connections or memberships aside from an acknowledgment by the International Chamber of Commerce. On the other hand, freight forwarders are linked with the International Federation of Freight Forwarders Association. They must comply with all FIATA regulations and codes of conduct when conducting their operations.

• Responsibilities

NVOCCs serve as carriers for shippers. This means they are responsible for transporting cargo by shippers and are considered the cargo’s primary carrier. On the other hand, freight forwarders are seen as representatives or intermediaries of businesses that arrange for the transportation of goods through various carriers such as shipping lines, airlines, and trucking companies.

In simpler terms, NVOCCs are responsible for the physical transportation of cargo. At the same time, they manage the logistics and paperwork associated with transporting goods from one place to another.

• Associated Components

NVOCCs typically transport freight in a container they have paid for. Some agencies also possess and transport cargo using their containers. They do not, however, offer storage and warehousing services, except for a few large-scale operators. On the other hand, freight forwarders do not require containers but must provide clients with storage and warehousing solutions.

• Rate Negotiation

The rates charged by NVOCCs are determined by their agreements with the shipping lines they use, ultimately impacting the prices offered to their clients. However, freight forwarders are responsible for determining the most efficient shipping route and negotiating favorable rates with carriers on behalf of their clients.

Although non-vessel operating common carriers (NVOCCs) and freight forwarders may provide similar services, the nuances of each service highlight their distinct differences. Businesses need to have a complete understanding of both providers to determine which agency is suitable for their unique needs and requirements.

One way to differentiate between the two is by examining the bill of landing. NVOCCs provide their clients with a House Bill of Lading (HBL), while freight forwarders receive a Masters Bill of Lading (MBL) directly from the shipping line. This distinction emphasizes the roles of NVOCCs as carriers and freight forwarders as agents.

Deciding Between NVOCCs and Freight Forwarders.

After comprehending the distinctions between NVOCCs and freight forwarders, the next step is determining which service aligns with your requirements. The choice between NVOCCs and freight forwarders hinges on crucial factors mainly your scope of work.

The initial factor to consider when deciding is the range of services offered. You need to assess the services you require and choose an agency that can provide them. Furthermore, the cost is another crucial factor to consider. You can select the provider that offers cost-effective services based on your needs.

For instance, small and medium-sized businesses often lack enough goods to fill an entire container. As such, they opt for NVOCCs allowing them to share containers with other clients and cut costs. On the other hand, larger companies have more negotiating power and might find it more advantageous to use the services of freight forwarders.

Sometimes, the choice between NVOCCs and freight forwarders is limited by availability. Choosing the available option based on your cargo type may be prudent rather than waiting for the ideal provider.

Conclusion

Understanding the differences between Non-Vessel Operating Common Carriers (NVOCCs) and Freight Forwarders is essential in making an informed decision as a business owner, importer, or exporter. While both offer similar services, their operations have critical disparities, such as container ownership, associations, and bill of lading used.

It is essential to consider factors that significantly affect your operations to choose the best provider for your needs. Sometimes, due to the dynamic nature of logistics, a single provider may offer NVOCC and freight forwarding services. Ultimately, careful considerations and research are necessary to make the best decision for your business.

Over the past four decades, the maritime shipping industry has experienced a consistent expansion, with over 1.5 billion tons of cargo transported in 2020, regardless of the pandemic. Across the logistics industry, shippers opt for containerization as the most effective and economical way to load and unload at pickup and destination points. These containers also offer high durability with their ability to withstand heat and water damage.

Typically, the prevalent option for shipping is the intermodal container, with a standard size of about 20 feet in length, 8 feet in width, and 8 feet 6 inches in height. However, this article aims to introduce high cube shipping containers – a variation of intermodal containers with a different dimension ideal for unique shipments.

What Is High Cube Container

A high cube (HC) container is an intermodal container with similar characteristics to a standard shipping container but with greater height. High cube shipping containers feature an extra foot of height compared to a standard intermodal container, making it particularly useful for shipping lightweight, bulky, or oversized cargo that would otherwise not fit into a common container due to height restrictions.

The HC shipping container is fashioned from steel and made to be weather-resistant and airtight; as such, it is mainly used for dry shipments. However, aside from conventional dry containers, high cube containers are also used as reefers, capable of transporting perishable goods, and pallet-wide high cube containers that offer extra width to accommodate more oversized pallets.

Other variations of high cube containers include the side-door and double-door high cube containers. These variations feature alterations to the container doors, providing additional access points along their sides for easy loading and unloading or dual entry points at both ends for more flexible loading options.

What Are High Cube Shipping Containers Used For

Due to their larger size and increased cubic capacity, high-cube shipping containers can accommodate cargo with greater surface area and volume, making them an ideal choice for transporting and storing oversized goods.

Most of these containers are also constructed with waterproof materials, ensuring the cargo remains dry and protected during transit. This feature also makes high cube containers a viable temporary storage option for goods that must be kept secure and protected from the elements. Here are some other standard benefits of HC containers.

• Temporary Storage

It is common for goods to require storage after they have been offloaded from the vessel and before they are transported to their final destination. High-cube shipping containers are highly beneficial in these cases as they offer additional height and volume compared to standard containers, providing ample space to store and protect the cargo.

This extra space also allows for greater flexibility in storing various shapes and sizes of goods, thereby reducing the risk of damage and maximizing available storage space. Furthermore, shippers can guarantee their cargo remains secure and protected from potential damage and theft during transit or storage.

• Durability

Like their standard shipping counterparts, high-cube shipping containers are constructed with waterproof materials that protect their cargo. These containers feature a galvanized, anti-corrosive steel frame which ensures they withstand the rigors of transportation and storage and can help to reduce risks, from fire to theft, extreme weather conditions, and mishandling.

The durability and waterproof characteristics make high-cube shipping containers reliable and secure for transporting and storing various goods, especially those more prone to damage and theft. 

• Cost Efficient

High cube containers efficiently transport cargo with significant volume and surface area from origin to destination. Typically, these containers have numerous lashing rings that can support weights of up to 1000kg, providing secure attachment points for the cargo and preventing shifting while in transit.

These lashing rings are fitted to ensure the container maintains its center of gravity and improves stability of the container. High-cube shipping containers are also easily transportable, and their size reduces the need for multiple shipments or additional handling procedures. This can result in cost savings and a more streamlined logistics process.

• Ideal For Unique Shipments

The increased height of high cube shipping containers provides additional space that shippers can modify to accommodate a broader range of cargo types. These modifications include air-conditioning, ventilation systems, and extra layers of insulation or protection.

These modifications can be beneficial for transporting unique shipments that require special handling and protection. By offering greater flexibility in cargo handling and transport, high cube containers allow for the safe, efficient, and cost-effective movement of various goods, ensuring they arrive at their destination in the same condition they were loaded.

How Much Do High Cube Containers Cost

The cost of a high cube container can vary depending on several factors, from the container size to the condition of the unit, container modifications, and the seller’s location. Generally, these containers are more expensive than standard containers due to their larger size and increased cubic capacity.

The average cost of a new high cube container can range from $3,000 to $7,000, while a used unit may be around $1,50 to $5,000, depending on the size. It’s important to understand that shippers could pay additional costs for cargo delivery, taxes, and other modifications.

High Cube Shipping Container Dimensions

A good understanding of the various dimensions and capacities of high cube containers can be extremely helpful in selecting the suitable unit to suit your specific needs. There are several sizes of high-cube shipping containers, all of which feature different dimensions.

20-Feet High Cube Shipping Container Dimension

• Internal length: 19.4 ft
• Internal width: 7.7 ft
• Interior height: 8.9 ft
• Tare weight: 5,103 lbs
• Payload capacity: 62,082 lbs
• Cubic capacity: 37,28 m³

A 20ft high cube container is similar to a standard intermodal container of the same length; however, it has an extra height compared. Typically, the size of these containers is about 8.9ft high, which is a foot taller than standard 20ft containers.

40-Feet High Cube Shipping Container Dimension

• Internal length: 39.5 ft
• Internal width: 7.8 ft
• Interior height: 8.9 ft
• Tare weight: 8,687 lbs
• Payload capacity: 63,052 lbs
• Cubic capacity: 76.3 m³

When the volume of your cargo exceeds the capacity of a 20ft high cube container, it is advisable to consider using the next best option – a 40ft high cube container. Opting for this container will provide more storage space and prove more cost-effective.

45-Feet High Cube Shipping Container Dimension

• Internal length: 44.5 ft
• Internal width: 7.8 ft
• Interior height: 8.9 ft
• Tare weight: 10,628 lbs
• Payload capacity: 61,431 lbs
• Cubic capacity: 86 m³

Shippers that want even more space can opt for a 45ft HC container. With a length of 45 feet and an added height of 8.9 ft, a 45ft high cube container offers a considerable increase in cubic capacity, allowing shippers to transport or store even more cargo.

Factors To Consider In Choosing High Cube Containers

High-cube shipping containers are some of the most versatile on the market today and provide several transport options. However, aside from the size, there are other factors to consider in determining if HC containers are the best option.

• Requirements

High-cube containers offer a versatile range of applications beyond traditional cargo transport. Their increased height and volume mean these containers are used for comprehensive storage solutions. Sometimes, people convert HC containers into living or working spaces for human occupancy.

Understanding specific requirements are crucial to deciding and ensuring compliance with local and natural regulations to prevent potential safety hazards. By recognizing the versatile applications of high cube containers, users can maximize the full potential for various requirements.

• Cargo Weight

Users who use HC containers for shipping or storage must identify the cargo weight they intend to transport or store. High-cube containers typically have a greater capacity to hold more weight than standard containers. They can accommodate up to 775 pounds more weight, making them suitable for transporting and storing more extensive and heavier items.

This will help to determine if HC containers are the ideal option and the perfect size dimension for their requirements. That said, loading these containers with excessively bulky loads can compromise the structural integrity of these containers and pose potential risks during transit.

• Budget

As with other shipping elements, budget is critical when getting a high cube container. The cost of HC containers may vary depending on individual requirements and the cargo’s weight. Furthermore, the overall expense will largely depend on the unique circumstances of each shipment, and it is crucial to consider these factors when determining the most cost-effective and efficient shipping solution for your cargo.

Conclusion

High-cube containers are unique solutions for specific shipping requirements. The extra height and space they offer make them more cost-effective and more accessible to transport than standard intermodal containers. However, high-cube shipping containers may only be necessary or practical for some situations.

Whether or not you should use one depends on your specific needs and requirements. Hence, it’s best to consider these factors and possibly consult with a shipping expert before deciding whether or not to use an HC container. Considering every relevant detail will help you decide on the best type of cargo to use for improved shipping safety and efficiency.

No matter what aspect of freight logistics you engage in, there are always additional factors to consider. Even for businesses with vast experience in transporting various types of cargo regularly, the enormous and complex shipping scene leaves little room to master all the intricacies and details involved in every shipment.

The logistics industry is rife with specialized vocabulary, and one term that has been gaining traction with eCommerce businesses is “dunnage.” However, despite its broad significance, dunnage’s precise meaning, scope, and benefits can still be shrouded in confusion and uncertainty. Therefore, we examine dunnage in detail to highlight its value for your business.

What Is Dunnage

In freight shipping, dunnage refers to low-cost waste or surplus materials utilized to load cargo and unload. The primary function of dunnage is to serve as a protective barrier, preventing direct contact between the freight and the surface of a semi-trailer for open-deck shipments. In the case of dry vans and reefers, dunnage can help to prevent multiple pieces of cargo from colliding or rubbing against one another.

Dunnage can be made from several materials, including foam, corrugated paper, wood, and plastic. In some instances, shippers and truckers can utilize V boards as dunnage. Whichever the case, these materials securely strap and fasten cargo in place during transit, preventing any potential damage that may arise from freight movement.

Pallets vs. Dunnage

Pallets and dunnage are both crucial components of the shipping and logistics industry, but they serve different purposes. Dunnage acts as a cushion buffer between the freight and the container surface by filling the gaps between items, preventing shifting and rattling. It can also be custom-designed and used for specific purposes based on the cargo’s type, size, and shape.

On the other hand, pallets are considered high-quality dunnage, mostly made from wood, plastic, or metal. They are flat structures that facilitate easy and efficient loading, unloading, and cargo transportation. Unlike customizable dunnage, pallets typically have a standard size and shape, allowing for easy compatibility with different shipping equipment.

Both wood and plastic pallets form excellent dunnage for transporting freight over long and short distances. However, plastic pallets have a more functional design aimed at resisting pests and withstanding about 4500 pounds of load.

Types Of Dunnage

When it comes to protecting gods during the shipping process, various packaging materials can be used as an infill to provide an additional layer of protection. The options are vast and varied, ranging from conventional materials like bubble wraps to more sustainable materials. Each type of dunnage works best under specific circumstances; hence, we highlight the common types employed for freight shipping.

●     Kraft Paper

Kraft paper is a versatile option used in various infill methods. It features a large size and flexibility, making it easily ripped and wrapped around products or crumpled up to fill empty spaces in a shipping container. As a result, it provides medium-level protection for goods while remaining a cost-effective choice. Additionally, kraft paper is readily available and can be recycled after use, making it an eco-friendly option.

●     Bubble Wrap

When shipping delicate and fragile items, bubble wrap is a popular choice. It is a popular dunnage option due to its excellent shock-absorbing properties and ability to protect items during transportation. Furthermore, shippers can reuse bubble wrap multiple times as long as the bubbles remain intact, making it a cost-effective option for businesses that regularly ship delicate products.

●     Crinkle Paper

Crinkle paper, or repurposed cardboard boxes, can also be an effective and eco-friendly dunnage option for protecting fragile items during shipping. Shredding cardboard boxes into accordion-like sheets can fill empty spaces in a package, cushion fragile items, and prevent movement during transit. The flexibility of crinkle paper allows it to be easily wrapped around glassware, bottles, and other delicate items to provide a high level of protection during shipping. Furthermore, it is also a practical and effective option for reducing environmental footprint.

●     Air Pillows

These are relatively new dunnage options that emerged in recent years. Air pillows are made of plastic and can be inflated to provide a cushioning effect for items during shipping. Despite their lightweight and affordable profile, they are highly effective in protecting items against damage during transit. They have quickly become a popular dunnage choice due to how easily they can be stored and inflated, saving valuable storage space and reducing shipping costs.

●     Foam Wrap

Foam is another prevalent dunnage material commonly used to pad and protect sensitive items, such as electronics, medical equipment, sharp and fragile objects, and more. Foam wraps are highly effective at absorbing shock, preventing the movement of items during transit, and providing excellent protection against potential damage. Foams can also be used repeatedly and recycled when the need arises.

●     Boxes

Shippers transporting heavy or sharp objects usually consider rigid or solid plastic dunnage. These boxes are customizable to become inserts, often molded with a consistent product dimension. These options are more expensive and subject to specific freight requirements; however, they effectively protect large and bulky equipment better than any other option.

These are some of the most popular and effective dunnage types used to protect shipments. Aside from these options, businesses can also explore additional dunnage types, such as bags, packing peanuts, pallets, corrugated paper, and other custom dunnage solutions.

Why Use Dunnage?

Dunnage may be a small but vital part of the packaging process as it helps in protecting practically all types of cargo during the loading and transporting of goods. Whether you’re looking to fill empty spaces, position goods securely, protect sensitive freight from moisture, or ensure items remain firm during transit, the significance of dunnage in logistics cannot be overlooked. Across the logistics industry, dunnage can be used in the following cases;

• To secure containers
• To block off broken stowage and fill void spaces between cargo
• To separate cargo
• To evenly distribute the weight
• To provide air passages for adequate ventilation
• To protect freight from moisture
• To prevent cargo items from shifting
• To provide spaces for air circulation in refrigerated places.

Benefits Of Dunage

Within a business, implementing dunnage is regarded as being just as critical as the goods’ shipment. Several vital benefits arise from the appropriate use of dunnage during transportation. Here are some of the most notable advantages of implementing dunnage within the packaging and logistics process;

●     Damage Protection

The primary purpose of dunnage is to safeguard your goods against damages that may occur during transit. Since these goods are often stacked, sorted, and loaded onto different modes of transportation, there is a higher risk of the freight getting damaged.

In such cases, dunnage plays a crucial role by limiting these damages through its ability to absorb shocks and impacts, protect against moisture and maintain the position of goods while in transit. Therefore, proper implementation of dunnage is essential to prevent any damage to your goods when they are on the move.

●     Optimizing Profits

Businesses can optimize their profits in several ways by implementing dunnage. For one, dunnage helps prevent product damage during transportation, eliminating the additional costs associated with replacing or repairing damaged goods. By improving freight protection, businesses can also reduce the number of returns.

Additionally, proper use of dunnage can improve transportation efficiency. Securely packaging freight fosters quicker unloading, which can help businesses to improve their operations and reduce costs associated with extensive and lengthy handling processes. Ultimately, companies can maximize their profits and improve their bottom line by minimizing the costs associated with damaged goods, returns, and inefficiencies.

●     Reducing Labor Costs

Employing dunnage in a tailored manner can significantly impact the labor force’s overall efficiency. With clear and concise requirements, a business can produce a more significant number of packages daily, leading to a higher return on investment and ultimately reducing labor costs.

Conclusion

While dunnage may not be well-known, it remains an essential aspect of shipping for any business. Depending on your product, the wide selection of dunnage options can help ship products to their destination without getting damaged.

It would be best to consider certain factors when looking into dunnage options. Aside from the product type, you should also consider how they will be shipped, the weight, and the packing option. For businesses sourcing logistics to third-party providers, it is best to inquire about the dunnage options and their effectiveness in keeping your product secure.

In the shipping industry, freight transportation involves various complex processes, including numerous computations, combinations, and approvals. Among the many essential factors that shippers must consider for the efficient and safe transport of goods is the concept of “tonnage.” 

This concept involves several vital calculations that must be evaluated and approved to ensure a vessel meets all relevant regulatory requirements and industry standards. Tonnage features several unfamiliar terminologies, making them quite complicated regarding shipping. Hence, this article aims to explain this concept and how it impacts shipping explicitly.

What Is Tonnage

In shipping, tonnage is a term used to describe the size or capacity of a vessel. It. is a measurement that expresses the carrying capacity of a ship in either weight or volume and assesses its earning potential.

The term tonnage originates in the historical practice of levying fees on vessels as they enter ports. These fees were assessed based on the tons a particular ship could accommodate, often determined by the vessel’s cargo-carrying capacity and other relevant factors.

However, the practice has evolved into a more formal concept of measuring a ship’s size and capacity, which has led to the development of various types of tonnage measurements used in the shipping industry today. And while several technical definitions help to describe tonnage, the underlying concept aims to express the carrying capacity of a vessel.

What Is Tonnage Tax

The tonnage tax is a unique taxation method applied to shipping companies, in which they are taxed based on the total tonnage of the vessels in their fleet rather than on their overall income or profits. This taxation form is a beneficial alternative to conventional corporate taxation, as the tax rates are often lower than standard government taxes.

Tonnage tax provides shipping companies with a more predictable and stable tax system, allowing them to plan their tax liabilities based on the tonnage of their fleet. It is assessed per ton, with a fixed rate per ton of cargo-carrying capacity. The concept of tonnage tax aims to promote a more equitable and proportional taxation system that reflects a shipping line’s operations.

This taxation mechanism also has the additional benefit of being independent of the company’s profit and total shipment volume. With tonnage tax, shipping companies and tax authorities explore a more straightforward and convenient way to calculate taxes.

Types Of Tonnage

A vessel’s tonnage is an essential consideration in the planning and execution of shipping operations, as it impacts costs, safety, and regulatory compliance. Several types of tonnage are used in shipping, each of which has a specific purpose within the industry.

• Gross Tonnage (GT)

The gross tonnage measures the total volume of a vessel’s enclosed spaces, including cargo, fuel tanks, and engine rooms. Gross tonnage is calculated by multiplying the vessel’s length, width, and depth and applying a mathematical formula considering the total cubic capacity. In some cases, the gross tonnage can also help to determine a ship’s registration and assess fees and taxes.

• Net Tonnage (NT)

Net tonnage (NT) measures a ship’s cargo-carrying capacity volume, subtracting specific spaces from the gross tonnage. These spaces include the ship’s propulsion areas, such as the engine room and fuel storage areas, crew accommodation quarters, and other recreational spaces. Shippers use the net tonnage to determine a ship’s earning capacity and operating costs.

• Deadweight Tonnage (DWT)

The deadweight tonnage measures the weight of cargo, fuel, water, and other supplies a vessel can carry. We obtain this measure by subtracting the ship’s lightweight, including the hull, machinery, and equipment, from its total displacement – the ship’s weight when fully loaded. Deadweight tonnage is typically used to determine a vessel’s carrying capacity and the fees charged for loading and unloading.

• Displacement Tonnage (DT)

The displacement tonnage measures the weight of water a ship displaces when it floats. As expected, when fully loaded, the displacement tonnage is obtained by subtracting the ship’s lightweight from its total weight. The displacement tonnage can obtain a ship’s stability and performance characteristics. This includes how much weight the vessel can safely carry and how it will handle different sea conditions.

International Tonnage In Shipping Certificates

An International Tonnage Certificate (ITC) is an official document that provides information about a ship’s tonnage measurements, which assess its cargo-carrying capacity and other relevant factors. The ITC is issued by a vessel’s “flag state,” which is the country where the ship is registered and is widely recognized by maritime authorities and regulatory bodies worldwide.

Typically, the ITC features two parts – one that provides information about the ship’s gross and net tonnage and another relevant measurement. The second part includes information about the conditions under which the certificate was issued and other applicable limitations or restrictions.

The ITC aims to ensure that ships are operated safely and efficiently and help regulate the international shipping sector. It remains a vital document for vessel owners, operators, and other relevant stakeholders in the industry, as it offers critical information about a ship’s tonnage and cargo carrying capacity, which helps to assess factors such as safety, stability, and regulatory compliance.

The International Tonnage Certificate is issued following general international regulations established by the International Maritime Organization (IMO). These certificates are also subject to periodic renewal and inspection to ensure that it remains valid and updated. It is one of several essential documents vessels must carry to operate legally and safely in international waters.

Importance Of Tonnage

Tonnage is an essential measure of a vessel’s capacity, calculated based on its weight or cargo-carrying capability. The use of tonnage in shipping provides several advantages, some of which include the following;

• Standardized Measurement

Using shipping tonnage as a means of measurement establishes a uniform method for assessing the capacity of various vessels, enabling simple comparison and evaluation between ships. A standardized measure allows shipping companies to obtain a more comprehensive understanding of the specifications and limitations of each vessel, thereby facilitating better-informed decisions regarding the most suitable ships for specific routes and freight.

• Fair Taxation

A significant number of nations utilize tonnage as the fundamental criterion for computing taxes and charges on shipping. This is because tonnage offers a transparent and impartial approach to determining the vessel’s worth and effect on port facilities and services. By measuring the tonnage of a ship, authorities can better understand its capacity and the amount of space required for docking, loading, and unloading, thus allowing for more accurate and fair taxation of shipping-related activities.

• Improved Safety

Tonnage is also a fundamental criterion for establishing safety regulations and vessel mandates. With this, vessels are constructed and operated in compliance with necessary stability, strength, and safety equipment standards. This, in turn, mitigates the probability of accidents and incidents in transit, promoting the safety and protection of crew members, passengers, and cargo.

• Efficient Cargo Handling

Shippers leverage tonnage to determine the optimal approach for loading and unloading cargo from a vessel, thereby improving the efficiency and cost-effectiveness of shipping operations. Through cargo space optimization, shipping companies can maximize their revenue and reduce expenses, resulting in increased profitability. Furthermore, by utilizing tonnage as a basis for cargo handling decisions, companies can make more informed and data-driven decisions, resulting in improved operational performance and enhanced competitiveness in the shipping industry.

Conclusion

Ultimately, understanding tonnage is a critical aspect of the shipping industry. Tonnage ensures efficient and safe freight transportation, from measuring cargo weight to providing a standard allowable vessel capacity.

Furthermore, each type of tonnage measurement is used for different purposes. A good grasp of what situations they apply can help shippers and carriers make informed decisions, minimize risks and optimize operations. 

Freight shipping can be challenging, mainly due to the plethora of available options, from transportation mode to warehousing, freight consolidation, and the like. Yet, it is crucial to fully understand and comprehend these shipping options, no matter how similar or complicated they may seem.

Less than truckload and full truckload are two of the most widely used services in freight shipping. And they both offer contrasting outcomes based on several factors and requirements, making the selection process between LTL and FTL very important. For businesses seeking to engage in freight shipping services, we highlight the differences between LTL and FTL shipments to help you decide which method works best for you.

What Is Less Than Truckload (LTL)

Less than truckload is a type of inland shipping method where several shipments from different customers are consolidated into one truck because each can only fill part of the truckload of space. The LTL method reduces the cost for businesses transporting small shipments that only need part of the truck container space.

The freight of different customers is consolidated and transported together, with the cost of transportation shared among each customer. The less-than-truckload shipping method is ideal for businesses with freight shipments of less than 15,000 pounds, as it allows for more flexibility and cost savings compared to other freight shipping methods.

Trucking companies that provide less-than-truckload shipping services protect each item while in transit by consolidating goods into large, crated, or palletized packages. Preparing the shipment limits the risk of handling damage during transfer to multiple trailers before reaching the final destination.

What Is Full Truckload (FTL)

The full truckload shipping method is used when a single customer’scustomer’s freight fills an entire truck. This means the trailer is dedicated to transporting one customer’s goods, and there is no freight consolidation with other shipments. In contrast to the less-than-truckload, FTL shipping is an ideal option for businesses with large loads that do not want to share truck space, typically for shipments weighing over 15,000 pounds. Shippers could also use full truckload shipping when;

• There have enough goods to fill an entire truck
• The customer prefers a dedicated truck
• The freight is time sensitive
• The freight weight makes it more cost-effective than other options.

Businesses that opt for full truckload shipping have better control over different aspects of the delivery process. Delivery time estimates are also fast and accurate since shipment does not have to be consolidated or transferred between trucks. However, this control comes at a higher cost, as the business has to bear the cost of the entire truck.

LTL vs. FTL

To better understand both shipping methods and when each works best, we highlight their differences based on speed, size, cost, and the risks involved.

●     Speed

FTL shipping is often faster than LTL shipping because FTL shipping dedicates an entire truck to transporting a single customer’scustomer’s freight. LTL shipping consolidates multiple shipments from different customers into one truck; as such, the consolidation process and freight transfer between trucks can result in delays and take longer for the cargo to reach its destination than FTL shipping.

However, shippers should also note that several factors can impact the speed of delivery, such as distance, route, and availability of trucks. In some cases, LTL may be faster than FTL; however, these are rare cases, with FTL shipping offering a quicker delivery most times.

●     Size

Another consideration to make when shipping freight is the shipment’s volume. As the name suggests, FTL and LTL indicate the size of the cargo transported, with LTL generally indicating small loads ranging from 100 to 5,000 pounds. FTL shipments tend to be more significant and feel most, if not all, of an entire truck, with these shipments weighing about 20,000 pounds or more.

Depending on other factors, businesses whose load range from 5,000 to 10,000 can opt for either a less-than or full truckload. In this case, LTL shipments are referred to as volume LTL shipments, while FTL shipments in this weight range are called partial TL shipments.

●     Cost

Despite the weight of your cargo, the cost for a full truckload remains the same. The rate of FTL may also increase under specific scenarios like if freight is out of gauge, requires special handling, or is overweight. All in all, the full truckload shipping method is a lot more expensive.

Since LTL shipments are smaller and allow for consolidation with other freight, they are cheaper. Customers only get to pay for space rather than the entire truck, which significantly reduces the cost. Deciding between FTL or LTL is vital, as a wrong decision can have severe financial implications.

●     Risks

The risks of loss, delay, or damage are always present during freight transportation. However, businesses can better mitigate some of these risks by opting for either FTL or LTL shipping. When shipping with FTL, there is a reduced risk of freight damage as goods are not handled so much. As for LTL shipping, the freight goes through several terminals before the final destination, and they are usually unloaded and loaded at each terminal point. Multiple stops increase the risk of handling damages, theft, or mismanagement.

Deciding Between LTL and FTL

Less-than-truckload and full-truckload methods are effective shipping solutions for businesses looking to transport their freight inland. However, they each work best based on specific requirements, and companies should always consider several factors before deciding on any of these options. Here are some factors to consider.

●     Quantity of Goods

The size of your freight is the first factor to consider before deciding on LTL or FTL shipping. For businesses with large and fragile shipments, FTL may be the best option, as it allows for the shipment to fill the entire truck. On the other hand, LTL would be the best option for businesses with smaller loads, as they can share the truck space and cost with other customers.

●     Speed

As we have seen from the differences between both shipping methods, FTL offers faster freight transportation than LTL due to a lack of consolidation. Hence, FTL may be the best option if speed is the utmost priority or for businesses handling time-sensitive goods.

●     Cost

The shipping cost with FTL is significantly higher than LTL, as the customer has to bear the entire truck’struck’s cost. Before making any decision, you should consider the costs and their financial implications for your business. If cost is a concern, opt for the more cost-effective LTL shipping.

●     Flexibility

Less-than-truckload shipping offers more flexibility regarding shipment size and schedule. Businesses can easily consolidate their goods in one truck rather than dedicating an entire truck to transport a customer’s goods. This allows for a wide range of shipment sizes and more flexible scheduling options. Hence, LTL shipping may be best for businesses that require greater scheduling flexibility.

●     Control

Another requirement to consider before choosing a shipping option is control. Some businesses require more power regarding delivery and handling compared to other businesses, and in this case, the best option is FTL shipping. FTL shipping offers a more streamlined and controlled delivery process, making it ideal for businesses requiring more significant control over their goods’ transportation.

Businesses should always weigh these factors and determine which would be ideal for their specific needs, operations, and requirements before deciding between LTL or FTL shipping.

Conclusion

No one can conclusively say one shipping method is better than the other. Each technique offers a unique and effective solution depending on the shipper’sshipper’s requirements. Choosing the most efficient option between LTL and FTL will depend on the specific characteristics of the freight you wish to transport and your shipping requirements.

Whether you consolidate your goods or get a dedicated truck, both options can optimize your supply chain when implemented correctly.

The logistics industry has several options that assist shippers in moving smaller quantities of freight. And while the plethora of options has proven beneficial, it can also overwhelm shippers. Understanding which service will fit your needs and identifying those that do not suit specific requirements takes work. Hence, we aim to pinpoint another mode of freight transportation – PTL shipping – and some elements of this type of shipping.

What Is PTL

Partial-truckload (PTL) shipping is a shipping mode employed for moving mid-sized quantities of freight that are neither classified as LTL shipments nor need the total capacity of a trailer. PTL refers to shipments that contain between 5 – 15 pallets, weigh 5,000 to 30,000 pounds and take up about 8 to 30 feet of the trailer. The dimensions and requirements of these shipments are somewhere between LTL and FTL freights.

For shippers looking to transport freight within this range of dimensions, partial-truckload shipping provides an efficient transportation option that saves cost and time. Most logistics services provide PTL shipping for moving smaller shipments of goods; however, instability in shipping time makes it prohibitive in some cases.

How Does PTL Shipping Work

Partial truckload shipping fills the gap and combines LTL and FTL freight shipping characteristics to provide a tailored option for some shippers. Similar to LTL freight, PTL shipping works by consolidating small shipments from multiple customers into a single truck, which then makes several stops to deliver each shipment to its final destination.

The process typically begins with shippers providing the logistics provider with relevant information about the shipment’s size and weight. This information is then used to match freight with other loads in the same direction. Following the freight consolidation process, the logistics provider manages the delivery process and is responsible for handling any issue that may arise during transit.

Shippers receive real-time updates throughout the delivery process, allowing them to track shipment progress and stay informed about potential delays. Shippers also need not worry about paperwork, such as customs declaration or bill of lading. Overall, PTL shipping is a cost-effective, flexible, and reliable solution for businesses that need to transport shipments larger than LTL freight but do not necessarily require the total capacity of a truck.

Benefits Of PTL Shipping

As you would expect with other modes of transportation, partial-truckload shipping has unique benefits and drawbacks. Whether or not it aligns with your business goals, schedule, and operations, entirely depends on your specific requirements and circumstances. To provide a comprehensive overview of partial-truckload shipping, we first identify some benefits of choosing this shipping method.

●     More Flexible Freight Classification

Freight classification is a significant aspect of less-than-truckload shipping and ultimately determines the pricing and transportation service for each shipment. Typically, freight classification works by identifying each shipment’s density, stowability, handling requirements, and liability potential and combining these factors to determine the final LTL shipping rate.

However, this is not the case with PTL shipping, as customers need not worry about freight class and its impact on shipping rates. For instance, while some cargo that weighs between 10,000 and 15,000 pounds can be classified as LTL freight, shipping them this way would be highly costly. On the other hand, PTL shipping quotes freight based on the total amount of trailer space needed instead of freight classification, which makes it more cost-effective.

●     No Accessorial Charges

Every shipping mode has additional fees added to the base shipping rate to cover extra costs associated with shipping a package. However, while these charges vary based on specific shipping requirements, it feels much more with other shipping modes than PTL shipping.

Several accessorial charges come into play, especially for LTL shipments. These charges can quickly add up, from residential delivery to extended delivery hours, lift-gate pickup, re-weighing, and other similar services. And without an adequate and transparent line of communication with transport providers, it can become very overwhelming for shippers.

With partial truckload shipping, some of these charges do not apply. Accessorials such as re-weight and re-class charges can be avoided entirely, making the cost and budget planning process more straightforward with PTL shipping.

●     Less Risk Of Damage Compared To LTL

LTL and PTL shipping share similar characteristics in that they are both terminal-based procedures and allow freight consolidation. However, as freight is moved from one terminal to another, the potential for handling damage increases.

PTL shipping minimizes these risks significantly compared to LTL shipping. This is because PTL freights are not transferred from one trailer to the next. The need to move freight is void if carriers plan out their trailer space efficiently. Hence, PTL shipping offers the cost-effectivity of LTL freight consolidation and the safety of FTL shipping.

●     Quicker Transit Time

One of the significant challenges of LTL shipping is its long transit time. Shippers looking to meet deadlines will either pay more for expedited services or get a dedicated truck. While PTL shipping is not as quick as getting a dedicated truck, it reduces the time typically associated with LTL shipping.

With PTL, the significant cause for delay would be the need for multiple stops for pickups and deliveries. However, since PTL carriers do not transfer freights to other trucks, it eliminates the handling time, providing a more expedited delivery timeframe than LTL shipping.

●     Cost-effective

In some cases, PTL is more expensive than LTL shipping. However, it remains cost-effective and a cheaper alternative to FTL shipping. With a full truckload, shippers pay for the entire truck and the driver’s time. And while this option becomes feasible in specific scenarios, PTL shipping takes some of the financial burdens from shippers.

With PTL, shippers can explore freight consolidation services in transporting significant amounts of goods. This makes it a cost-effective option for shippers that only require limited space and are ready to be flexible with delivery timelines.

Challenges Of PTL Shipping

Having identified the benefits of PTL shipping to LTL and FTL, it’s best to understand some challenges in utilizing PTL shipping. Here are the drawbacks of partial-truckload shipping.

●     Longer Transit Time Than FTL

While PTL shipping provides a shorter transit time than LTL, the consolidation processes and numerous pickup and delivery stops make it harder to predict the transit times. As such, shippers must be realistic about their freight delivery time when using PTL shipping.

●     Specifying Accurate Dimensions Is Crucial

Every logistics company that offers PTL shipping service requires accurate information to understand the requirements of a shipment. And as this service aims to cut down on transit time, precise planning and preparation are needed. Therefore, shippers risk delays and disappointments if the dimensions of their shipments are not specified.

●     Requires Flexible Deadlines

With PTL shipping, the pickup and delivery timeframe is never concrete due to several factors associated with freight consolidation. PTL carriers are committed to several shippers. As a result, deadlines could change. If you wish to transport your goods through PTL shipping, make your deadlines flexible and work with customers to manage expectations at the destination.

Conclusion

It is common for businesses operating in a rapidly evolving market to seek ways to improve the supply chain. Partial truckload shipping might be a worthwhile strategy to achieve supply chain optimization. By utilizing this service, you can take full advantage of its strengths and minimize weaknesses to streamline your shipping process and maximize your budget. However, PTL shipping also has its complex processes. As such, businesses should plan and execute this strategy carefully to guarantee success.