Regardless of the type of freight you have to shift, there are always challenges to moving consignments into country areas. The size of the community you are trying to reach will determine the number of transport options you have as a result.
The easiest way to get started is to search for a carrier based in the town you are trying to reach.
If you decide to use a national carrier to service that town, they will invariably pass it on (subcontract) the job to a local carrier and charge you a substantial surcharge over the reasonable rate.
So, to alleviate the cost and avoid getting charged the proverbial, use the yellowpages or similar database and search for a carrier in that town. If you are not too sure of what type of carrier you are after, call the first one you find. You will find (or at least it has always been my experience) that carriers in smaller towns will be able to direct you to the best local person for the job.
Keep in mind that as a smaller carrier, it is likely you will have to organise the movement of the consignment to their depot. Make sure the consignent is packed well and labelled correctly. See elsewhere in the blog for info on labelling.
Another method of finding a carrier in a country area is to simply ask the receiver. If the receiving business or individual has some local knowledge, I am confident they will be able to assist with a reliable carrier.
Monday, 3 October 2011
Wednesday, 28 September 2011
Calculating Cubic Weight of consignments
Though the focus of most carriers is on the weight of your consignment, there are times when you may have a large lightweight item to transport. Many businesses and individuals become confused about how their lightweight consignment can be noted on paperwork as a relatively heavy weighing item.
The reason carriers convert bulky items to a weight is based on capacity and efficiency. For example, one tonne of tiles will fit comfortably on one pallet and will take up a very small space. However, one tonne of pillows will take up most of a trailer. The carrier cannot afford to transport those pillows for the equivalent charge of one tonne so they convert it to cubic weight.
If you ask your carrier what the conversion is, they will probably tell you
The reason carriers convert bulky items to a weight is based on capacity and efficiency. For example, one tonne of tiles will fit comfortably on one pallet and will take up a very small space. However, one tonne of pillows will take up most of a trailer. The carrier cannot afford to transport those pillows for the equivalent charge of one tonne so they convert it to cubic weight.
If you ask your carrier what the conversion is, they will probably tell you
- 1 tonne = 0.333 cubic metres
- Weight - 85kg
- Dimensions - 3.5m L*1.8m W*1.5m H
- 9.45*0.333 = 3.146
Tuesday, 27 September 2011
Sliding Scale Freight Charges
When carriers calculate the cost of moving your consignment, they are working on how much the consignment weighs and the actual space it will take up on the vehicle. Transport companies are not only limited by the overall weight of the vehicle and the trailers, they are also limited to individual axles weights.
Carriers will generally work on a sliding weight scale to calculate your charges. For example, 1 tonne may be charged at $200, however a full B Double load weighing 36 tonne may be charged at $2500.
The reason for such a large difference is lossely based on the convenience or inconvenience of the freight.
For example, if a driver had 34 separate consignments with different delivery addresses all over a city, it would take considerable time to make those deliveries. Even though he might be receiving good revenue, it is offset by the time it takes to complete the delivery, the added administrative work to track the deliveries, invoice the work and so on.
The driver completing one delivery for one consignment for a lesser charge is far better off so far as convenience is concerned. Plus he is able to unload and reload much faster if he has only one pick up and one delivery.
Carriers will generally work on a sliding weight scale to calculate your charges. For example, 1 tonne may be charged at $200, however a full B Double load weighing 36 tonne may be charged at $2500.
The reason for such a large difference is lossely based on the convenience or inconvenience of the freight.
For example, if a driver had 34 separate consignments with different delivery addresses all over a city, it would take considerable time to make those deliveries. Even though he might be receiving good revenue, it is offset by the time it takes to complete the delivery, the added administrative work to track the deliveries, invoice the work and so on.
The driver completing one delivery for one consignment for a lesser charge is far better off so far as convenience is concerned. Plus he is able to unload and reload much faster if he has only one pick up and one delivery.
Sunday, 25 September 2011
What is Backloading?
Within the transport industry, backloading is a dirty word.
Road Transport works on the basis of supply and demand. The more demand for a service, the higher the rate. Of course the opposite also applies so the less freight available, the increased competition for that freight drives the rate down. The backloading term is used to describe the cheapest leg of the journey when carriers are more likely to negotiate their rates to gain the work.
Of course there is a limit to how low a carrier will go - and that is based on the overall revenue gained from the 'trip' the vehicle completes. For example, using full loads as our benchmark, let's assume you wanted to move a full B Double load from Sydney to Brisbane. Becuase there are substantial freight volumes in Sydney travelling to Brisbane, carriers are in a position to choose the freight they carry and set a reasonable rate (to a certain extent).
So you may end up paying anywhere from $2500 to $3000 per load. In this example, let's use the distance of 1000km as a benchmark. Let's also say the gross revenue you want from your vehicle is $2.00 per km. Now the operator receiving $3000 to go from Sydney to Brisbane needs to receive $1000 for the return leg in order to average $2 per km for the round trip.
However, the operator that travelled to Brisbane for $2500 needs a return of $1500 to receive the same revenue per km. While $500 is only 12.5% of the overall required revenue, it is a 50% increase on the revenue the first carrier needs to receive.
Hopefully you can see why some carriers can make the Brisbane-Sydney journey at a reduced cost compared to others. That's why it is called a 'backloading' leg.
One issue you also need to keep in mind is that to comply with the various laws and regulations, carriers have to spend money. Those that do everything 'by the book' will invariably be more expensive to use that the small carriers that do not instigate the huge number of compliance regulations.
With this in mind, you, as the consignor and/or consignee, also have a number of responsibilities in relation to chain of responsibility legislation and fatigue management. More on this later, but suffice to say that if you make a demand on a carrier that is likely to compromise fatigue management laws, and that driver is involved in an accident, you may be held to account.
Road Transport works on the basis of supply and demand. The more demand for a service, the higher the rate. Of course the opposite also applies so the less freight available, the increased competition for that freight drives the rate down. The backloading term is used to describe the cheapest leg of the journey when carriers are more likely to negotiate their rates to gain the work.
Of course there is a limit to how low a carrier will go - and that is based on the overall revenue gained from the 'trip' the vehicle completes. For example, using full loads as our benchmark, let's assume you wanted to move a full B Double load from Sydney to Brisbane. Becuase there are substantial freight volumes in Sydney travelling to Brisbane, carriers are in a position to choose the freight they carry and set a reasonable rate (to a certain extent).
So you may end up paying anywhere from $2500 to $3000 per load. In this example, let's use the distance of 1000km as a benchmark. Let's also say the gross revenue you want from your vehicle is $2.00 per km. Now the operator receiving $3000 to go from Sydney to Brisbane needs to receive $1000 for the return leg in order to average $2 per km for the round trip.
However, the operator that travelled to Brisbane for $2500 needs a return of $1500 to receive the same revenue per km. While $500 is only 12.5% of the overall required revenue, it is a 50% increase on the revenue the first carrier needs to receive.
Hopefully you can see why some carriers can make the Brisbane-Sydney journey at a reduced cost compared to others. That's why it is called a 'backloading' leg.
One issue you also need to keep in mind is that to comply with the various laws and regulations, carriers have to spend money. Those that do everything 'by the book' will invariably be more expensive to use that the small carriers that do not instigate the huge number of compliance regulations.
With this in mind, you, as the consignor and/or consignee, also have a number of responsibilities in relation to chain of responsibility legislation and fatigue management. More on this later, but suffice to say that if you make a demand on a carrier that is likely to compromise fatigue management laws, and that driver is involved in an accident, you may be held to account.
I bought something on eBay and need to transport it
There is no denying that eBay and online sales have been great for parts of the transport industry. But be assured, not every carrier wants to move your bargain bike/piano/furniture through their business.
When you are bidding for goods on eBay or other auction sites, always ensure you check the freight options. If delivery is NOT included in the sale, do yourself a big favour and investigate costs etc BEFORE YOU BID!
I have lost count of the number of occasions I have received an enquiry to move an eBay item. The company I work for has an absolute minimum charge of approximately $50 not including pick up. To pick something up from a house or business, the cost increases to more than $300.
If the item you are buying is reasonable small, then make the post office your first enquiry.
If you really want to use a carrier, contact the seller and get all the details you can including the weight and dimensions. Then start shopping around. Keep in mind that rates vary considerably depending on who you call. There are also companies that will not move your freight unless you have an account - and you cannot open an account until you spend over $500/$1000 per month.
In summary, even though you get a sensational bargain on that '84 model GPZ900R, you could end up paying better than full price to get it delivered to your door.
Rather than get caught out, make a few simple enquiries first. Plus, if you get a quote from a carrier, get it on an email. It will make your life easier when you need to use the service.
When you are bidding for goods on eBay or other auction sites, always ensure you check the freight options. If delivery is NOT included in the sale, do yourself a big favour and investigate costs etc BEFORE YOU BID!
I have lost count of the number of occasions I have received an enquiry to move an eBay item. The company I work for has an absolute minimum charge of approximately $50 not including pick up. To pick something up from a house or business, the cost increases to more than $300.
If the item you are buying is reasonable small, then make the post office your first enquiry.
If you really want to use a carrier, contact the seller and get all the details you can including the weight and dimensions. Then start shopping around. Keep in mind that rates vary considerably depending on who you call. There are also companies that will not move your freight unless you have an account - and you cannot open an account until you spend over $500/$1000 per month.
In summary, even though you get a sensational bargain on that '84 model GPZ900R, you could end up paying better than full price to get it delivered to your door.
Rather than get caught out, make a few simple enquiries first. Plus, if you get a quote from a carrier, get it on an email. It will make your life easier when you need to use the service.
Packaging your consignment
When you decide to transport your consignment, your priority is to get the goods to the destination in the same condition as it departed. Packaging will determine just how well the consignment travels and arrives at the destination.
The choice of packaging comes down to what the consignment is and how it will react to various conditions including
If you are sending machinery on a pallet or skid, it will be recommended you secure the item to the skid using strapping which is available at packaging outlets eg Australian Warehouse Solutions or may be available from your carrier. Another method is to engineer bracket(s) and attach to the pallet/skid using bolts.
When packaging your consignment, keep in mind the carrier obviously has an obligation to secure the goods on the vehicle. You can assist the driver by marking clearly on the consignment where a rope/strap may be placed effectively that will not damage the goods.
Always remember that your consignment will be handled with care by the carrier, but there are many things you can do to enure it arrives at the destination in perfect condition.
The choice of packaging comes down to what the consignment is and how it will react to various conditions including
- Weather
- Movement on a vehicle
- General bumps and knocks
- Tie down points.
If you are sending machinery on a pallet or skid, it will be recommended you secure the item to the skid using strapping which is available at packaging outlets eg Australian Warehouse Solutions or may be available from your carrier. Another method is to engineer bracket(s) and attach to the pallet/skid using bolts.
When packaging your consignment, keep in mind the carrier obviously has an obligation to secure the goods on the vehicle. You can assist the driver by marking clearly on the consignment where a rope/strap may be placed effectively that will not damage the goods.
Always remember that your consignment will be handled with care by the carrier, but there are many things you can do to enure it arrives at the destination in perfect condition.
What is a Skid?
A skid is simply a pallet that is built to specifically suit the consignment that is sitting on it. For example, if you wanted to send a small quantity of tiles or pavers somewhere and it is too heavy to carry, you could easily build a skid using cheap softwood timber.
The benefit include the
The benefit include the
- Skid is of very little value so you do not have to concern yourself with having it returned.
- They are simple to make using second hand or new timber.
- They are a much simpler option to a Chep or Loscam pallet.
- You are not paying for a full pallet space on a trailer.
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