With the current economic situation everyone is looking at how they can increase their bottom line. One way of doing this is by understanding and monitoring your container sizes. By maximizing the cube, or capacity on a container, you can reduce your overall cost per cube thus resulting in improved margins on the product.
Where possible the use of high cube (HC) containers will accelerate the savings opportunities over the utilization of 40-foot standard containers.
Depending on your commodity there is the opportunity to load at least 20 percent more product in a 40-foot HC versus a 40 foot standard container (66 CBMS vs. 55 CBMS).
If you have multiple containers from the same factory, you would be an excellent candidate to consider utilizing a bigger container and reduce the annual quantity of containers and therefore reducing your cost per cube.
If you had 200 containers and went from 100 percent 40 foot containers to 70% HC and 30% 40 foot containers you could potentially realize a substantial savings in the ocean freight costs. There would also be a cost savings on the dray cost due the fact that you would be moving fewer containers. Additional benefits would be less man hours required for PO’s written, tracking, scheduling appointment etc…
Our goal is to keep our customers informed. If you feel that this may be an opportunity for your company please give your local South East World Wide, Ltd. Sales Representative a call or email.
