Seamless Logistics & Cost Savings: Success in International Logistics to USA
Optimized Planning, Cost Savings, and Reliable Delivery – How Vonova Logistics Helped a Cable & Wire Industry Client Avoid Delays and Save $20,000.
Client Overview
Customer: Cable & Wire distributor
Origin: Vietnam
Destination: New York, USA
Objective
Provide a seamless, cost-effective logistics solution for transporting transmission cable reels.
Ensure compliance with road weight restrictions and avoid costly delays or penalties.
Key Shipment Details
Goods Transported: Industrial cable reels
Container Type: 5 x 40’ flat racks (adjusted from initial supplier plan of 4 to meet weight regulations)
Mode of Transport: Ocean Freight and Final Mile Flat Bed delivery
Situation
A USA-based client in the cable and wire industry required the transportation of large reels of transmission cable from Vietnam to New York under FOB (Free On Board) terms. This included managing ocean freight, customs clearance, and last-mile delivery in the United States. The seller was responsible for shipping to the origin port, while the client managed logistics from the foreign origin port to the consignee’s location in the U.S.
To ensure seamless operations, the buyer (our customer) needed to appoint a freight forwarder, transporter, and customs broker. With our proven expertise in handling similar logistics for the renewable energy sector, particularly for reels of cables and wires, the client entrusted us to manage the entire process and address all their concerns.
Task
1. Quoting the shipment from Vietnam to New York, including the final delivery.
2. Mitigating risks of costly additional charges i.e. detention and demurrage by ensuring accurate and comprehensive planning.
3. Providing a cost-effective, seamless logistics solution that met the client’s needs.
Action
1. Initial Review and Discrepancy Identification
Upon receiving the purchase order, we thoroughly reviewed the customer’s packing list and cross-referenced it with the supplier’s loading plan.
Issue Identified: The supplier planned to use 4 flat racks instead of the required 5, failing to account for road weight restrictions in the U.S.
Solution: We advised the client to rework their loading plan to use 5 * 40’ flat racks, ensuring compliance with road weight limits and preventing potential legal and logistical issues.
2. Detailed Planning and Considerations
We developed a comprehensive plan that accounted for:
In-gauge and out-of-gauge dimensions.
Terminal lifting capabilities and road restrictions.
Terminal arrival logistics, appointment requirements, and additional port fees.
Our standard operating procedure (SOP) for shipping flat racks ensured a streamlined process, avoiding potential issues.
3. Risk Mitigation and Cost Savings
By identifying errors in quotes from other providers—such as failing to account for road weight restrictions—we saved the client significant costs. Accurate budgeting for terminal flip fees, transload, and drayage minimized risks of detention and demurrage.
4. Client Confidence and Collaboration
The client sought additional quotes but encountered inaccurate plans from other providers. A proposed direct trucking option was proven non-compliant due to height and weight restrictions. Our proactive communication and verified solutions regained the client’s trust.
Plan Execution
Loading Plan:Vonova created a revised loading plan based on 5 flat racks. This plan was verified with the supplier and approved by the buyer.
Savings: By avoiding the supplier’s original plan, the client saved approximately $20,000, which would have been incurred due to terminal fees and demurrage risks.
Transloading Advantage:Transloading at our warehouse allowed greater control over delivery schedules, meeting terminal appointment and consignee delivery requirements.
Steps Followed:
Ensured 5 flat racks were prepared for loading at the origin.
Supervised the supplier’s loading process, including photo documentation.
Provided the client with ETA updates and coordinated with our warehouse and dray providers for timely pickups.
Seamlessly executed the final delivery to the consignee, avoiding delays or additional costs.
Result
The shipment was flawlessly executed and delivered on time without any additional costs. The client expressed satisfaction with the seamless process, effective risk mitigation, and significant cost savings provided by Vonova Logistics.
Key Benefits to the Client:
· Avoided $20,000 in unnecessary costs.
· Gained confidence in accurate and efficient project handling.
· Established Vonova Logistics as a trusted partner for future projects.
This case highlights Vonova Logistics’ commitment to proactive planning, cost-effective solutions, and client satisfaction in managing complex logistics for the cable and wire industry.
