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Trans-Pacific Import Freight Cost Savings with 53' Containers Blog Feature
Rick LaGore

By: Rick LaGore on January 27th, 2017

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Trans-Pacific Import Freight Cost Savings with 53' Containers

Logistics & Supply Chain

Intermodal Containers in YardA rising tide in Trans-Pacific ocean freight rates is the expectation analysts see over the long-term.  

With rising rates in mind, InTek Freight & Logistics developed a solution for BCO's and NVO's to tap into the empty 53' domestic containers produced in China and destined for the class I railroad door-to-door divisions.

The 53' containers bring capacity through a unique avenue that captures cost savings by providing 53' capacity containers that would otherwise be empty.   This give both BCO's and NVO's the opportunity to obtain highly competitive door-to-door rates, while the manufacturing company gains revenue on the container that would otherwise be 100% cost to them making for truly a win-win for all parties involved.

53' Containers Advantages for Imports 

  • competitive advantage utilizing 53' containers for importsLower Total Cost per Cubic Meter 

    • 53’ container=113cubi meter, 50% more capacity than 40’HQ ISO container
      • In addition to the space gained, there is savings on terminal handling, documentation and entry filling
  • Speed 

    • The 53' boxes are loaded on the top layer of the steamship, thus unloaded first.
      • Dedicated bay on steamship lines, scheduled weekly services.
    • No need to transload at the port, which is done roughly 35% to 40% of the time for ISO containers, eliminating a step in the supply chain making for quicker transit to the final destination.
    • Fast transit from China port to anywhere in North America using intermodal service.

  • Damage 

    • Brand new containers.
    • No additional touches from a transload.
  • Box Ownership Advantage 

    • The boxes are owned by the container manufacturer, so if there would be another Hanjin situation these containers would not be captured in the bankruptcy proceedings.
  • Environment 

    • Fewer boxes are moved, so less trucks on the roads.

Freight Characteristics to Use 53' Import Containers  

  • The 53' container can hold 113 cubic meters.
  • Cargo weight cannot be greater than 18 ton.
  • The goods origin locations for the manufacturing of this product are better to be in Guangdong province, although any city in the southern and southeastern cities will work well.

We'd love to be part of the conversation, so please do not hesitate to reach out to learn more.

For more on 53' domestic intermodaltruckload and managed transportation services, please sign-up for our weekly blogs and visit the InTek Freight and Logistics website. 

 

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About Rick LaGore

Rick is the co-founder and CEO of InTek Freight & Logistics, a company focused on being the place where companies come when faced with a logistics problem.

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