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September 2005
Evaluating total
cost trade-offs between container vs. break-bulk on
International shipments
Most international shipments are well suited to be
moved in a container load environment. This is an
excellent alternative to shipping products via a
break bulk service. Break bulk shipping entails
added costs that can sometimes be overlooked in
making cost comparisons. Often marking requirements
are different and usually fewer markings overall on
container shipments. It may only require marking
each pallet, rather than each unit on a pallet. The
actual packaging requirements are very different,
since the break bulk ocean shipment environment is a
great deal harsher than the demands for safe
packaging when moving in container lots or in
consolidated small lots moving in a single
container. The container transit time between
any two ports is usually much faster and this means
lower inventory costs. Simpler paperwork, less
potential for pilferage is all quantifiable
advantage to container-oriented shipments for export
or import. The paper work for international
clearance of export shipments is also much simpler
(albeit, still complicated) on shipments moving in
container lots. The handling costs per unit of
product are altogether different, but be sure you
are capturing all of the costs, since there may
often be increased as well as decreased costs easily
quantified. There are also costs and benefits which
are difficult to measure such as a better delivered
product to the customer because of appearance or a
better handling characteristic. Better security for
the product against pilferage and vandalism is also
a plus. If you use a Forwarder or Export/Import
Freight Broker, seek assistance from them in
providing relevant cost or data information. The
decision for selecting the method to use for
international shipments and to analyze the
alternative costs belongs to the Logistics “Group
Team B,” but again it is imperative that everyone in
this particular group is aware of the costs as well
as the benefits associated with this effort and
their contributions are well understood and
appreciated by everyone in the designated group.
Otherwise you run the risk of the loss of the
benefits which real synergism develops from the
correct development of this project.
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