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Containerisation in logistics for small and medium-sized businesses
Containerisation is a convenient way to reduce costs, speed up transportation and protect goods. For small and medium-sized businesses, it can be a powerful tool for growth, but if calculations are incorrect, it can easily become a source of losses. To avoid losing money, it is important to understand when containerisation is truly beneficial and what mistakes companies most often make. Read more about this and other topics in the blog of LLC «SyncraNova».
What is containerisation?
It is a method of delivery where goods are packed into standard containers, which are then conveniently transported by any means of transport. Imagine a huge box that holds a bunch of small boxes with your goods. The main advantage here is that everything is in one place, reducing the risk of damage or loss of cargo. But that doesn't mean you can just throw your goods into a container and forget about them. Incorrect packaging, incorrect volume calculations or an unsuitable container type can turn convenience into an unnecessary headache.
When it's profitable and when it's not
Containerisation is particularly advantageous if you have regular deliveries and volumes large enough to fill a container completely. If the goods are small, shipments are infrequent, or you need to be flexible in changing routes, a container can become an unnecessary burden. Here it is important to honestly calculate how much you actually transport and how often. Mistakes in this regard can hit your wallet hard.
Common mistakes
The most common mistake is saving on packaging. If you save on sturdy pallet fastenings or protective padding, the cargo may arrive damaged, and it will be almost impossible to obtain compensation. Another point is choosing the wrong type of container. Dry, refrigerated, specialised — each model has its own requirements. The wrong choice can lead to damage to the goods.
What is containerisation?
It is a method of delivery where goods are packed into standard containers, which are then conveniently transported by any means of transport. Imagine a huge box that holds a bunch of small boxes with your goods. The main advantage here is that everything is in one place, reducing the risk of damage or loss of cargo. But that doesn't mean you can just throw your goods into a container and forget about them. Incorrect packaging, incorrect volume calculations or an unsuitable container type can turn convenience into an unnecessary headache.
When it's profitable and when it's not
Containerisation is particularly advantageous if you have regular deliveries and volumes large enough to fill a container completely. If the goods are small, shipments are infrequent, or you need to be flexible in changing routes, a container can become an unnecessary burden. Here it is important to honestly calculate how much you actually transport and how often. Mistakes in this regard can hit your wallet hard.
Common mistakes
The most common mistake is saving on packaging. If you save on sturdy pallet fastenings or protective padding, the cargo may arrive damaged, and it will be almost impossible to obtain compensation. Another point is choosing the wrong type of container. Dry, refrigerated, specialised — each model has its own requirements. The wrong choice can lead to damage to the goods.
How to choose a scheme
The choice of containerisation scheme depends on what you are transporting and how often. One of the main options is FCL, full container load by a single shipper. This approach is beneficial for large volumes: processing and delivery are faster, and the risk of damage is minimal. For smaller volumes, LCL (less than container load) is used, where you share a container with other shippers. This is cheaper, but delays due to consolidation should be taken into account.
In addition to the loading format, the ownership of the container is also important. SOC means that the container is owned by the shipper. This eliminates rental payments, but requires independent maintenance and tracking. The opposite option is COC, the carrier's container. Such a container is convenient and quick to rent, but at the same time, you will have to take into account rental fees, penalties and strict return deadlines.
To choose the right scheme, it is worth calculating the volumes, testing at least one shipment and assessing how convenient and profitable the chosen format is for your routes.
The choice of containerisation scheme depends on what you are transporting and how often. One of the main options is FCL, full container load by a single shipper. This approach is beneficial for large volumes: processing and delivery are faster, and the risk of damage is minimal. For smaller volumes, LCL (less than container load) is used, where you share a container with other shippers. This is cheaper, but delays due to consolidation should be taken into account.
In addition to the loading format, the ownership of the container is also important. SOC means that the container is owned by the shipper. This eliminates rental payments, but requires independent maintenance and tracking. The opposite option is COC, the carrier's container. Such a container is convenient and quick to rent, but at the same time, you will have to take into account rental fees, penalties and strict return deadlines.
To choose the right scheme, it is worth calculating the volumes, testing at least one shipment and assessing how convenient and profitable the chosen format is for your routes.
Buy or rent
If you need containers on a regular basis, buying may be more cost-effective, as you can control their condition and service life. For infrequent shipments, renting will reduce maintenance, repair and storage costs.
What to monitor in terms of figures
You need to know exactly how much each shipment costs, how much each kilogram and cubic metre costs, as well as the costs of packaging, insurance and additional carrier services. If you miss even one indicator, containerisation will cease to be a tool for optimisation and become an expensive headache, according to LLC «SyncraNova» specialists. Containerisation saves time and money, but only with accurate calculations and the right choice of container type.
If you need containers on a regular basis, buying may be more cost-effective, as you can control their condition and service life. For infrequent shipments, renting will reduce maintenance, repair and storage costs.
What to monitor in terms of figures
You need to know exactly how much each shipment costs, how much each kilogram and cubic metre costs, as well as the costs of packaging, insurance and additional carrier services. If you miss even one indicator, containerisation will cease to be a tool for optimisation and become an expensive headache, according to LLC «SyncraNova» specialists. Containerisation saves time and money, but only with accurate calculations and the right choice of container type.