For those who work or intend to work in Foreign Trade and International Logistics, it is important to know that there is a millenary reality in maritime transport, the rollover of cargo.
This is a problem that will happen sooner or later, and several Comex professionals already consider this common fact and see it as routine.
The reason cargo roll over happens is simple: there is more cargo on the market than available space for them to board.
It’s the law of supply and demand.
On the other hand, it’s okay that the rollover of cargo is millenary, but it remains common in the 21st century is purely commercial and strategic.
Why does load scrolling happen?
In a normal scenario of pressure and temperature, shipowners – and airlines – sell more space on ships – and airplanes – than there really is.
And this is due to the uncertainty they have that the charges will be delivered on time. Since, in the case of the vehicle, the cargo must be:
- Be ready;
- Delivered to the port of embarkation; and
- Resourceful.
Which, now and for a long time, is not common to happen.
In addition, technically, there needs to be a balance in the vessel. That is, the loads need to be aswed inside the ship so that it remains in balance during its journey, to prevent it from sinking.
Very heavy loads tend to suffer “cuts” precisely because of the load capacity they occupy. That’s because a 20-ton 20-ton container compromises the ship’s capacity more than a 10-ton 40-foot container.
How to avoid rolling loads?
First, it is possible to prevent loads from being scrolled strategically, as long as the safety of the vessel is not at risk. However, for small batches this dilemma will hardly come into play, as a ship with 4,000 TEUs (Twenty-foot Equivalent Unit) will not be damaged because of 1 container. When the lots are large – very large – the story is different.
Not counting the issue of security, everything else is commercial, that is, it is possible to avoid rolling cargo simply by convincing the shipowner that it is worth transporting that container in that exit. However, this requires some actions and care, which certainly go through the value of the freight itself, since the shipowner prioritizes who pays more.
Make a reservation in advance
Apart from the issue of stage freight value, another strategy to avoid loading is to make the reservation in advance. This does not guarantee that the container will not be rolled, but gives the importer – and exporter – more time for action in the event of a rollover, which will happen time or time.
Keep track of the calendar
There are periods when the amount of loads that go out of certain sources increases. It’s the traditional holiday parties and local holidays, like the Chinese, that are long and happen twice a year. These moments are known as peak seasons and are famous for increasing the rolling rate of loads.
In these times it is common that there is an increase in the value of freight, lack of space to reserve shipment or shortage of empty containers for transport at the origin. Not to mention that in addition to the lack of container truck door, lack of driver of cargo vehicles, for example.
In the air modal the increase in passengers in aircraft causes the amount of luggage to also grow and, as bags have priority, the probability of cargo rollover also gets higher.
Have good partners
In addition to commercial and programming points, working with reliable and transparent load agents can be a good way out for companies looking to avoid rolling loads. This is because often these companies reserve annually a quantity of space inside the ship and can prioritize the exit of a particular container.
It is no guarantee, but the chances that the cargo will be shipped on a specific date increases significantly when the cargo agent has blocked space with the shipowners. The difference is that in this case it is necessary to convince him that it is worth boarding a certain cargo, which will be simpler.
Understand your demand
To work in the Foreign Trade market the professional will have to know well the real need of his product. That is, knowing when you need the cargo at the destination accurately and communicating well with other departments of the company to understand how the stock is and even when it is possible to wait for the import are essential to overcome this obstacle.
International Trade is not an environment to walk groping in the dark and counting on luck. Companies that do not program themselves and pressure suppliers are known in the market for being bad buyers and disorganized. Consequently, it is these companies that are most at risk of not having their urgency taken seriously simply because all their cases are urgent.
What to do when load scrolling happens?
In short: it will happen sooner or later.
The scrolling of loads is another common situation in Foreign Trade. More important than scrolling itself is how the professional handles it and what measures it takes when the event happens.
In cases where scrolling is frequent, it is important to talk to everyone involved in the process to understand the reason and address the problems. When scrolling is sporadic, the Comex professional needs to explain to the commercial or PCP (Production Planning and Control) department that there is a solution. Scrolling is a reason for force-greater force and is likely not to happen again.
If the load is rolled more than once, the shipowner and the cargo agent are probably not being transparent about the motive and, in this case, the investigation needs to be more thorough.
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