Different types of cargo by sea

Goods moved by sea are classified differently according to their texture, nature and composition.

Abril Lopez, Branch Manager of Key Logistics Group, clarifies what these classifications are and how a cargo can be included in each of them.

Different types of cargo by sea

Full Container Load FCL (Full Container Load)

It is all general cargo merchandise that is stored and transported in a container, being the most used equipment in Mexico, Colombia and the world the 20 and 40 feet containers.

Less Than Container Load (LCL) Consolidated Freight

In this mode, goods from different suppliers travel together in the same container. Accordingly, upon arrival at the port of destination, the container is deconsolidated, i.e., the different goods from each supplier are shipped and delivered separately.

Breakbulk Cargo

It is a fractioned cargo, i.e., due to its dimensions it does not fit in a closed container (oversized machinery), therefore, its handling and packaging, unlike bulk goods, is individual and it is possible to transport it in an open container, also called Flat Rack.

Bulk Cargo

It is cargo that is moved or transported in large quantities without any packaging, i.e., the container itself is the same ship in which it is transported. They are divided into two groups; dry bulk cargoes (grains, minerals) and liquid bulk cargoes (chemicals, petroleum).

At Key Logistics we offer different freight forwarding services, consider in which cases you can access or take each of them.

When to use the different freight transportation services.

Ground freight forwarding service

Road freight transport is one of the most widely used means of transporting goods in the world. It is fundamental to a country’s economy as it transports goods and allows an easier and more affordable exchange between suppliers.
In addition to this, Julian Sarabia, Container and Multimodal Transport Operation Analyst at Key Logistics Colombia, clarifies that this type of transport allows to open doors with different customers looking for logistics solutions for the delivery of goods in the warehouse of the corporate client and the final consumer.

In which cases is it better to use it?

  • Speed
    Management and speed in the delivery of goods, since ground transportation allows delivery at different times of the day any day of the week.
  • Accessibility
    The land transportation service allows accessibility to reach different parts of the country and border areas to deliver all types of cargo.
  • Flexibility
    The ground transportation service allows for flexibility in the dispatch of goods and door-to-door services.
  • Adaptability
    When you need to move hazardous, heavy or highly complex materials: This service is ideal for transporting them due to its easy adaptability and handling.

Air freight service

There are several reasons and characteristics that make the airplane the ideal means of transporting goods that have allowed this industry to grow in recent years, as well as factors that should be taken into account when using it.

In which cases is it better to use it?

  • Security
    When you need to transport fragile goods. The method of travel and security of an airplane allows your most fragile goods to be transported without fear of damage or damage in transit.
  • Agility
    When you need agility to ship or transport goods by air, the procedures are simpler thanks to access to the technological interface designed for this logistics sector.
  • Speed
    When you need to transport goods to different parts of the planet in a short time: The wide network of air connections in the world allows your goods to reach the requested place in a reduced time.
  • Connectivity
    When you need immediate availability of international transportation: The growth of the aviation industry has allowed to increase the number of frequencies and flights to transport cargo to different parts of the world without having to wait long to get it.

In which cases is it better to use it?

  • Storage
    When your company needs to move large quantities of products: The storage size of the vessels allows this transport capacity to be larger compared to others.
  • Costs
    When you need to transport more for less: Freight with this means of transportation is less expensive, thus, this means is optimal for moving goods over long distances, due to the existing relationship between costs and ample cargo capacity.
  • Scope
    When you need to transport goods to any part of the planet: It can be said that the scope of maritime transport on the planet is total, since goods can be transported to any continent with the deadlines already established between suppliers and customers.
  • Versatility
    When you need to transport any type of merchandise: The wide variety of existing vessels makes it versatile to transport from one place to another products and articles of any size, shape, specialty and characteristics.

At Key Logistics we clarify doubts about the chargeable weight of an airfreight or air shipment that you should take into account when calculating your costs.

Chargeable weight characteristics and how to calculate it

What is chargeable weight?

Chargeable weight in an air shipment is the greater amount generated between weight and volume, i.e. between the weight and the space occupied by the goods. In these shipments, the gross weight is not necessarily the weight on which the rate is charged, for this reason it is necessary to make an additional calculation since many companies or customers are surprised to receive invoices on an air freight, in which appears a weight greater than the gross weight of their cargo.

How to calculate the chargeable weight?

To understand why, Abril López, Branch Manager of Key Logistics Mexico, explains with a simple example how to calculate the chargeable weight of your goods.

Quantity: 1 pallet

Weight: 150kg Dimensions: 110x 110x 110 cms
Multiply the measurements (must be measured in centimeters in all cases) 110 x110 x110 = 1331000 / 6,000 (factoring measurement in all cases is always 6000) = 221kg.

Another way to calculate the chargeable weight is as follows:

The measurements are multiplied as M3 (cubic meters in all cases) 1.10 x1.10 x1.10 = 1.331 x 166.67 (factoring measurement in all cases is 166.67) = 221kg.

Finally, in this air shipment the freight calculation to be invoiced is made on 221kg which is the volumetric weight and not the 150 kgs gross weight.

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As for everyone, 2020 was a different year, full of uncertainty and surprises in terms of logistics, for the Asian import market it was no exception. During the last months of 2020, several situations occurred that were totally atypical to the natural course of the import market and that will continue to occur during the first quarter of 2021.

What is happening and what to expect this year in the Asian import market?

Significant rate increases.

Significant rate increase from August through December 2020. According to Abríl López Regional Branch Manager of Key Logistics Group Mexico, these levels are expected to continue until March 2021, eventually stabilizing, although it is uncertain, however, that levels will decrease to last year’s levels for the remainder of this year.

Shortage of containers and available space.

There has been an unprecedented shortage of containers and space, causing an increasing use of surcharges known as “premium services” where shipping lines release and give preference in bookings and equipment to customers who pay such surcharges. The lines have also implemented “penalties” for those who cancel reservations, which range from USD100 to USD200, depending on the shipping line.

Chinese New Year

The Chinese New Year (February 12 to 18) has also been a factor of concern for this first quarter of the year, the urgency of importers to get their goods out before this holiday has caused more demand and an excessive saturation of spaces. Officially, the holiday lasts for one week, but it is expected that workers in China will travel to their place of origin and upon their return some will need to be quarantined as a Covid-19 prevention measure, which may cause delays in production schedules.

Decrease in days available on different shipping lines for the first quarter of 2021

Due to the shortage of containers, shipping lines have decided to reduce the number of days free of delays, in order to avoid excessive use of equipment and ensure its prompt return.

  • The decrease in days varies according to the shipping line, in some cases they have changed from 21 to 7 days off causing an increase in these surcharges.
  • As a measure to solve this problem, shipping lines have cancelled some export services from the USA and Latin America to China and have allocated only empty equipment spaces in order to satisfy export demand to the rest of the world.

In this scenario full of uncertainty, opportunities also arise, since there has been a considerable increase in e-commerce, which increases the need to make the movement of goods more efficient. There has also been an increase in the number of entrepreneurs seeking other sources of income, which is why specialized advice has become more important. Due to this situation, customers are being asked to reserve their shipments at least 2 weeks in advance and, if possible, to provide a monthly projection of the volumes to be considered.

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