Leverage Crating Services for maximum protection
Shipping increases risk exposure to environmental and handling damage
Export crates reduce risk of damage and malicious 3rd party action
Protection is the main driver of utilizing crating services for international shipping. In total, there are four key shipping risks that logistics teams leverage crates to circumvent: physical damage, environmental damage, tampering/theft, and intellectual property.
To ship internationally, the cargo must travel a significant geographic distance. This necessitates the freight to change hands numerous times in the process of loading, unloading, and through transit. Shipping crates, with a solid sheeting exterior, provide a formidable barrier of protection. The higher the sensitivity of your product, the higher the priority it is to eliminate the risk of physical damage for your international shipment.
Franke’s has provided shipping crates for various industries and sensitive products, including: automobile export, industrial machinery, automotive components, and IT server systems.
Physical damage is not limited to handling errors when shipping international. Depending on lead time and final destination requirements, your product could be exposed to turbulence over ocean or air movement. In addition, as the product passes through new climates, the risk of humidity and temperature fluctuations can cause further damage. Similar to handling damage, crating affords the most protection from natural movement caused by weather related turbulence. Additionally, crating can be leveraged to create a controlled environment through the addition of desiccants and foam inserts.
Although unfortunate to consider, tampering and theft happen on a global scale. With an open pallet style of shipping, the possibility of theft increases given the ease of accessing your product. Product(s) enclosed in a shipping crate are sealed by fasteners, providing the greatest deterrence and evidence of theft during transit.
Lastly, for intellectual security when shipping to riskier domains, enclosed packaging masks the product you are exporting. International shipping likely includes a multitude of other products for scale efficiencies. If your product is enclosed and not visible to the eye, it will blend in with the surrounding cargo. In addition, even if the wood box is opened, the bad actor would get an obscured view since the sides and bottom will still be concealed.
Simplify labeling and adherence to regulatory compliance
A crate provides clear space to provide unique labeling for handling and unpacking instructions
Export packaging has strict regulatory requirements with ISPM-15
By leveraging crates for your organization’s export needs, you will have clear and ample space for the necessary labeling for handling instructions and international stamping requirements.
Crating is typically constructed of solid panels across the lid and sides. This space is ideal to include company specific labeling. Such labels can include company name, product name, SKU identification, handling instructions, etc. These labels can be stenciled during the manufacturing process, avoiding additional work for your team and possible delays in export packing.
Without the flexibility of solid paneling, companies who strictly palletize will use attached labels to the pallet. This can present challenges regarding the amount of information that can fit on the label, and the overall clarity for the cargo carrier. With a multitude of items being handled, a single attached label can be easily missed, whereas large stenciling on various sides of an export crate is more difficult to ignore.
Lastly, all wood packaging products shipping internationally must be compliant with ISPM-15. This regulatory requirement was reviewed in-depth on one of our previous blog posts. In summary, crating or pallets that have an international designation must be treated and subsequently stamped by a certified entity. Without this stamping, your shipment will likely be denied crossing by customs.
Optimized for multi-modal transportation
Shipping crates are safer and optimize freight
Crating with its inherent design is optimized for multi-modal transportation. In multi-modal transportation- trains, planes, trucks, and freightliners all have specifically defined space available for transit. Given that crates often follow standard dimensions and are stackable, it is easier for the carriers and material handlers to maximize available space. Pallets or direct product placement will leave open spaces above that cannot be utilized. So, although packing can be easier on a pallet, the packing advantages don’t justify the added efforts and inefficiencies when mapping the processes and routes through shipping across international routes.
In addition, for an organization’s own material handlers during the initial packing and loading, crates are a safer alternative. Since boxes are typically packed tightly, with custom bracing, the internal loads are less likely to shift since weight is distributed more evenly. Because product movement is less likely, this results in less impactful events from errors in handling when considering the safety ramifications. OHSA violations and VSSR claims are expensive and cumbersome, with residual impacts that can last years. While more expensive on a per unit basis compared to pallets; avoiding just one accident because of a company’s packaging decision will avoid the disruption of working through federal agency requirements and investigation.
Lastly, within an individual crate, organizations are likely able to ship more product compared to a palletized approach. While pallets can only accommodate one layer of product, crates can have various layers separated for product placement. For certain products, crates afford the opportunity to completely fill the area that your organization is allocating for shipping. While this is important for domestic shipment, it becomes even more critical when considering transit across international destinations.
International Transportation Cost Savings
Overseas freight savings
Protective crating cost savings
As discussed, crates on a per unit basis compared to a pallet is more expensive. However, when considering the wholistic factors, the total cost of shipping is cheaper compared to the pallet alternative.
Export crating can help avoid physical damage in transit, safeguarding material handling and environmental factors while your product transitions across various environments. When considering the cost of returns and rework, as well as missed lead times, the overall cost can exponentially rise. Spending the extra money upfront for packing with crates compared to pallets will pay for itself. Although when considering short domestic trips, a cost analysis would be warranted for this decision. However, in international considerations, the scale tips heavily towards crating for the lowest overall cost of operation.
Space is a premium when shipping, and the cost for space rises the longer the transit time. Given the stacking ability of boxes, its design allows for maximum space utilization, so your organization will be able to utilize the full area in which you are contracting. Overall, you will be able to utilize less overall ground surface area, which will pass along total cost savings for your delivery.
Lastly, regarding safety, there is a tremendous amount of cost savings that can be achieved by utilizing crating as a safer alternative. For an at-fault safety incident, there are numerous costs that will be incurred. Aside from hefty fines that can be imposed by OSHA, the time needed to satisfy an investigation can quickly accumulate. For any significant injury occurrence, your organization will have to comply with a formal investigation. Even if ultimately no fault is identified, your personnel will still have to spend significant time compiling all necessary documentation, internal reports, and video footage. This is a direct labor cost for all personnel involved, as well as the opportunity costs of the job they aren’t able to perform while they comply with the investigation.
For shipping to another country, it makes sense across all considerations to transition your packing operation to a crating approach for everyone involved.