We have taken our
dual heritage of
great customer service
and low transportation rates
and infused it into
a new division called
DDF Logistics

By Debbie Gordon

There is virtually no product that does not move by truck, air or ocean. Freight is an integral and expensive element especially in the Promotional Products Industry. Because of this, freight should be a major concern and consideration of Suppliers, Distributors and end users.

There are very few topics that get both Distributors and Suppliers disturbed, except when the subject of freight comes up. Freight is usually the last thing you want to think about, but believe me, if you don't, you might be sorry. Whether you are shipping to a trade show, cross-town, cross country or worldwide, the most important aspects are the service level and your confidence in the carrier you choose. Following close behind is cost.

Be informed! Don't be afraid to ask questions from your carrier about the services offered and the costs. Remember, you are the customer and you should be knowledgeable in all aspects of freight.

Let's take a look at the different type of freight services and what to look for when comparing costs and service.

Truck. Van Lines are usually more expensive than motor freight (common carrier). Be sure to find out if the quote they provide you includes inside pickup and/or delivery (Inside pickup/delivery is into the place of business; otherwise, the freight will be picked up/delivered at the shipping dock). To avoid any problems or questions when you receive your freight bill, know if there are any wait time allowances. Most trucking companies allow two hours free time then begin charging an hourly rate. Does the rate include fuel surcharges? Is there a minimum shipment requirement? Is it differed or expedited service? Differed service means there is no rush for delivery and ultimately is more cost effective. Expedited service means you need the goods delivered by a certain time and results in higher freight costs. Be sure to ask if the charges are based on actual or dimensional (by size) weight. You are usually charged the greater of the two.
Always be able to provide your freight company with specific information to obtain an accurate quote. Know the origin and destination zip codes, how many pieces are going to be shipped, the dimensions of each piece, weight per piece, commodity and if they are going to be hand-loaded or floor loaded. Hand loaded is usually more expensive because someone has to physically load and unload each piece by hand. Floor loaded means that the shipment is palletized and is able to be loaded/unloaded directly onto or off the truck. Know if you need a lift gate. If you don't have a loading dock at origin or destination and the freight must be unloaded by the use of a lift gate, there will be an additional charge incurred.

Check to see how many times the freight will be handled during the course of a shipment. In other words, when the trucking company comes to pickup your freight, how many terminals between origin and destination will your freight be physically off-loaded in a terminal and re-loaded onto that or another truck? This additional handling exposes you to possible damage and loss.

In the Promotional Products Industry many manufacturers and Suppliers enjoy the benefit of a discount from the major carriers because of the volume of freight they move. The subject of freight being a profit center has been a bone of contention in the Promotional Products Industry for many years. As a Distributor, be informed. Most Suppliers will pass on that discount to you, but do some comparison-shopping. Talk with your Supplier. In most cases, they are willing to work with you because they want to make sure you are a satisfied client. Both the Supplier and Distributor have a lot to gain by having that mutual trust.

Utilize your discount programs with FedEx through PPAI and Airborne through ASI or other Associations and organizations. Depending on the volume of freight you move, will determine the savings you could reap. Remember one thing, we all have the power of choice.
Rush Service. There are options to consider when time is of the essence.
          • Analyze the cost from your Supplier or manufacturer to produce your item.
          • Analyze their policy for rush charges.
          • Analyze your cost on the freight to move it from the Supplier to you or your customer.
          • Analyze what expedited service with your freight company would be.
You might be better paying the higher freight costs and accepting the Supplier or manufacturers normal production time or vise verse.
Air / Ocean Freight. In today's global economy, it is very important to be knowledgeable about importing and exporting. Do your homework before deciding whether it is more cost effective to ship by air or ocean. If you need your product fast and you're running out of inventory, airfreight might be the way to go. If you are just ordering to keep inventory in stock, check out ocean freight rates. Consider the airport or port you want your freight to arrive at. If by ocean, sometimes it is more cost effective to bring your freight into the West Coast and rail it over to the East Coast. This is what we in the freight business refer to as MLB (mini-land bridge). You can save both time and money by shipping your goods this way. MLB could take you approx. 20-25 days from the Far East to New York, while all-water from the Far East to New York could take up to 36 days. In dollars and cents, MLB may be a little more expensive but the end result is how it effects the way you do business. By having your product in-house sooner rather than later, you may be able to service another customer in a timely manner with product you might not otherwise have had in stock.
Choosing a freight forwarder is very important when importing goods. Get someone you trust and feel comfortable with. You will be talking to them a lot. There are always questions to be asked and answers that are needed quickly. It is important that you can speak to a "person" rather than a "voice" when U.S. Customs starts questioning you about your products. Your freight forwarder will know how to answer most of these questions. Be sure to find a freight forwarder that can provide a door-to-door service. You don't want to have one company provide the air or ocean, another to do your Custom brokerage and yet another to deliver your goods. This becomes not only confusing but time consuming and costly. A company that can provide door-to-door service should be able to track your shipment at any given time of the day or night.

Be sure you provide your forwarder and/or U.S. Custom broker with all the necessary documentation to clear your shipment. You should insist that your manufacturer send via FedEx, DHL, Airborne or a similar courier service, a complete set of documents (at least 1 set of originals and 2 copies) including Packing List and Commercial Invoices. An original set should accompany your freight. It is important that you receive a complete set prior to your freight arriving so that U.S. Customs can begin clearing your shipment immediately once the goods have left the origin country. This can save you, in most cases, days of waiting time to clear and deliver your goods.

Remember when importing, not only do you have the cost involved with air or ocean freight but Customs as well. Find out before you start importing what cost are involved with U.S. Customs. Find out how much you are going to pay on duty and taxes for the product you are importing. Know if there is a quota on that product. Check to see if it is cost effective for you to deliver the goods to a Free Trade Zone (FTZ) warehouse where your goods will be kept until you actually sell the product. This will save you taxes initially. If your product is kept in a FTZ, you will not be responsible to pay taxes until the goods are actually sold.

If you are going to be importing on a continuing basis, it is important that you engage the services of a freight broker. The freight broker will work for you. Since they are familiar with all the U.S. custom rules and regulations, they will advise you accordingly and help make your custom clearances easy. The US Government requires you to post either a one-time bond each time you import or an annual bond. If you plan on importing more than once a year, I would consider an annual bond. This bond is renewable yearly.

The bottom line is, be informed and educate yourself. A person who is well informed can make a more responsible decision and possibly save money when it comes to importing.
Trade Shows. Take a minute and reminisce over the past year. How often did you question yourself about your freight and whether it was going to be on the show floor when you arrived (usually late) to set up for a show? Before choosing a transportation carrier for your trade shows, consider a number of issues:
          • How important is this show to you? If it's important, consider….
          • The carrier you chose;
          • What services does this carrier offer over other carriers;
          • Does this carrier specialize in trade show material;
          • What type of equipment does the carrier have;
          • Is there someone available on-site to assist if there is a problem with your freight
Shipping display and show materials to a trade show is a whole different ball game than moving freight from warehouse to warehouse. Most of the time show material is time sensitive. Be sure you find a company that has a lot of experience with all aspects of show freight. Choose wisely - as a Supplier or exhibitor, your display material could be your lifeline to your success.
If a caravan service from a trade show is offered, take a good look at that option. There are very few caravan services for trade shows today. If you can find one, you could save yourself and your company a lot of money, especially if you do a number of shows during the course of a year. Debbie Does Freight, Inc. has a trade show division and specializes in caravanning. There are other caravan services around, also. A caravan service is an added benefit for an exhibitor and is offered by Show Management not the drayage company. If the shows you are currently involved with do not provide this service, you might ask your Show Management about providing one.

Be careful in selecting a caravan service. Find out where your freight will be stored between shows. You want to be sure your freight is easily accessible at all times and is stored in a bonded warehouse and not outside in a trailer. Be sure your freight can be delivered directly to show-site to save you money on drayage.

Caravan services should provide storage and palletizing for you between shows at little or no cost. With a caravan service, you won't have to worry about wait-time adding up at the marshalling yard while waiting for an open loading dock to deliver your freight. A good caravan service provides you with an all-inclusive rate so there is never a question later. That rate should include, any wait time whether it be at the advanced warehouse or at show-site. Make sure there are no hidden costs involved. A caravan service will always have a representative on-site at the show to answer any questions you may have or resolve any problems that may incur. A reputable caravan service will be available 24/7.

If you are not using a caravan service, think of how you will ship your freight. Is your freight going to the advanced warehouse or show site? There are pros and cons to each. If your freight goes to the advanced warehouse, be sure to make an appointment for delivery or you may be paying for wait time. Most of the time you can get in within the two-hour free time allotted by most carriers. By sending freight into the advanced warehouse, your drayage charges incurred by the drayage company assigned to the show will be higher than if you deliver your freight to show site. Even though it may be higher, it might be cost effective to do it that way.

If you have your show materials delivered to show site, your driver must check in at the marshalling yard and could be waiting for hours to have your freight unloaded. After two free hours, you are then charged an hourly rate for wait time, which could become very costly. It is not unusual for trucks to be waiting in the marshalling yard 6-10 hours for an open dock to pickup or deliver your freight.

I earlier used the word "drayage". Even though drayage is a very costly item it is something that most exhibitors do not understand. The freight company does not charge drayage. The drayage company charges it. This company is an independent concern that either show management or the decorator chooses. This charge is for the movement of freight from their warehouse (advanced warehouse shipping) or the loading dock at the show venue to the exhibitor's booth.
Be sure your trucking company provides you with all the necessary information you will need to make an education decision before contracting with someone.
          • Know if and what special handling charges you will incur if you request a specific time for a pickup or delivery;
          • Are there added fuel surcharges and how are they calculated;
          • Do they provide additional insurance if you need it;
          • Do they charge you on actual or dimensional weight;
          • What "class" does your exhibit material move at and does your volume discount cover exhibit material;
          • Does the trucking company have lift gates if you need it;
          • Does the equipment have air-ride suspension;
          • Are trucks equipped with satellite tracking systems;
          • How is the trailer secured once your freight is loaded? Is the trailer sealed or pad-locked or neither.
Understanding the equipment and services your carrier provides can avoid any problems with damage or missing freight. Be sure to remove all old labels from your exhibit materials before shipping. Many times there are multiple labels on a case or carton. If an independent carrier is moving your freight, they won't necessarily know where to ship the freight if there are multiple labels visible. Be sure to always fill out a bill of lading properly to ensure your freight is shipped to the right place. Make sure you turn it in to the right person. If you have any questions, don't guess ask for assistance.
Now that we've discussed the different types of freight and what you should be cognizant of, you need to also prepare yourself to answer many questions from your carrier in order to obtain an accurate quote. If you are going to a show, know your show schedule, deadlines, inventory of your exhibit material and/or special needs or equipment. Whether moving freight by truck, air or ocean, be sure to ask for written confirmation and a tracking or PRO number, airway bill or ocean bill of lading, so that you can track your shipment.

Freight should be the easiest movement you experience. Freight should not be stressful. The best ways to ease the stress and tension that can occur with freight is to deal with known quantities and simply old fashion people to people communication.