3 Biggest mistakes shippers make today, which cost them thousands of dollars

Reefer cargo damage in transit. Cargo claim.

Not always cargo damage happens due to the carrier’s fault. Sometimes it is shippers responsibility. These actions result in lost cargo claims.

The demand for imported goods to the USA and EU has been driving up freight prices dramatically with some major brands paying 10 times the price of typical shipping charges. Other importers are contracting entire vessels in order to avoid delays or cope with the uncertainty of the rising freight charges. All shippers are paying extraordinary amounts to gain delivery priority and expedite delivery dates.

The skyrocketing price of shipping goods across the globe is a headache for all-size importers.  Companies are desperately trying to work around the higher costs. Some have stopped exporting to certain locations while others are looking for goods or raw materials from nearby locations.

Other exporters however, take exorbitant risks, which lead to hefty losses and cargo damage.

We’ve compiled a list of the biggest mistakes desperate shippers make today, so you can avoid all associated losses.

Cutting corners when shipping reefer cargo.

Chilled goods: These include fresh fruits and vegetables, dairy, eggs, confectionery, live plants, and flowers. They require low temperatures, around freezing points, but are not to be frozen. Their freshness and shelf life depend greatly on their nature, packing, and surrounding conditions. Chilled cargo must be transported with utmost precision so as to retain its commercial value. For example cauliflowers, sweet corn have high respiration rates and so, release a lot of gases and moisture. They require optimum temperature and humidity levels so that their quality and shelf life are not impacted. The same applies to most chilled goods.

With outrageous freight prices, overwhelmed exporters opt to load together and set the same “average” temperature and “average” vent opening for different chilled cargoes. Even if transit time is short and cargo was not rolled over at the loading port these practices almost always lead from partial to total cargo loss.  Even worse, there is no legal way to recover these losses from shipping lines and even from marine insurers (if the cargo was insured).

It is strongly recommended not to mix load different types of commodity under the same load. Some of these cargos (mainly chilled fruits) have their own required temperature and carrying condition (air exchange) e.g. produce with high ethylene content can cause rapid deterioration to highly sensitive cargo like grapes, plums, nectarine, etc.

Cargo must be handled properly at every step of the transportation process, from packing, storage to loading in containers. Negligence can adversely impact the shelf life, quality, and appearance of the cargo. This behaviour also leads to futile recovery from the carrier.

Saving on Packaging and poor stowing:

This aspect of cargo handling should be designed to protect against rough handling and bad weather. The cartons used for packing must be strong enough to withstand the weight of the stacks above them and capable of protecting the products inside, especially with regard to humidity and temperature. When stowing cargo, there should be adequate ventilation and airflow. However, different cargo types require different stowage practices. Chilled fruits and vegetables need proper air supply through the packaging while frozen goods must be stacked as solid blocks without gaps. Correct packaging allows produce to ventilate, transpire and emit ethylene and CO2. Produce should be packed closely or tightly secure to prevent bruising and crushing during transportation. Plastic and bubble wraps can be used to enhance protection. Packaging should be strong enough to protect and carry the produce. It should also allow ease of loading, unloading, and sales.

Recently we noticed an increased number of cargo claims due to the poor – not sufficient, not adequate packaging ‍and improper cargo stuffing. These practices are vastly attributed to cost savings by the shippers transporting dry and reefer cargoes.

Overloading containers.

This recent practice is the most dangerous because it not only affects shippers’ cargo due to poor ventilation but also creates substantial risks during cargo handling operations. If before the pandemic some commodity traders were shipping 3 containers, now they load the same quantity of goods in 2 containers.

Most shippers these days struggle with high freight rates, port congestion, equipment shortage, and very few free days at the destination. Perhaps you face only one issue, or maybe all of it. At once.  Whether you maxed out your credit line or find yourself under the mountain of business loans, figuring out how to keep business running as an importer can be exhausting.

Our advice is not to rush into something that could cripple shipper in the long-run. Understand risks of “cutting corners” or inadequate savings is vital today, before anyone convinces you that it is “a common practice”  now.