Skip to main content

Shipping Wars

Everyone knows that business runs in cycles. up then down, too much work than not enough work, from the phones have been ringing off the hook to I don't think this phone has rang all week! July and August are traditionally slow months in logistics, the calm before the storm of the logistics capacity crunch for retailers gearing up for the holidays.

During our slow time I decided to shop our packing and shipping services on UShip, an online marketplace for shippers and carriers where carriers bid to ship items for less. You might have seen their show on TV called "Shipping Wars".

I posted a number of bids on providing packaging and shipping services from the Phoenix Metro area to all parts of the country and internationally. We won two bids fairly quickly and have already started working on the packaging and shipping for a bookcase and for the other customer we are packing and shipping a desk.

My observation so far is that most people who post on UShip have improbable expectations like I have a one bedroom apartment, no furniture just boxes and I need to move to New York I'm looking to do so for $100. The gas to get to New York from Phoenix is more than $100 so why would anyone do this job?

I find that there are many freight brokers on the site, many of whom outbid us to the get the job. Its so funny because they all think the job is just shipping. For example, I bid $511 to pack and ship desk and chair, In my bid I stated this included pick up, shrink wrap, boxing, palletizing and banding for safe transport and shipping. Some broker bid $499 and the customer chose them.

A few days later I saw the Desk and Chair listed again, The explanation was that the shipper and the carrier could not reach an agreement because the items needed to be boxed and packaged before the shipping could take place. Hello?

This has happened so many times, people will take the lowest bid and not realize that they need more than just a truck. I always let the shipper know "We are a professional packing and shipping company located here in Phoenix" maybe you should pay $12 more and have this done right (packing and shipping) then deal with the yahoo sitting on his couch in Ohio just trying to make a few bucks with his shipping rates.

I don't consider this a "shipping war" its more like a shipping conflict with the conflict being people need to understand that price correlates to the service. I know the customers we have gotten are happy with our service and price and they know they got the whole package and that their shipment is taken care of from pickup to delivery. For everyone else all I can say is you get what you pay for and when your item is damaged because of insufficient packaging all I can say is Ship Happens!

  

Comments

Post a Comment

Popular posts from this blog

Does your delivery need a C.O.I?

In the Transportation Logistics world insurance is required for pretty much everything. General Liability, Motor Truck, Contingent Cargo and Marine Cargo as well as coverage's like Errors and Omissions and Workman's Compensation. You would think by needing all this coverage that moving cargo around the world and into someones business or their home is a pretty risky endeavor. It is! Gateway O.T performs Inside and White Glove delivery services where the building owner or management company requires us to prove we have sufficient insurance coverage while in or on their property. Our Crate and Freight division performs on site packing and crating services for large corporations that require we meet their minimum insurance requirements before we enter their property. Large corporations carry many insurances but have to minimize their risk of claims against those policies by ensuring that the outside contractors they utilize have the coverage needed in case of an accident ...
2 comments
Read more

In this Crisis let me know how horrible I am

This blog has to start the same way most communication starts today with...A Covid-19 Statement: The writer of this blog encourages all readers to have washed hands, and that you have recently sanitized your screen and the keyboard/mouse you are using. It is also best if you are reading this from home since most of America is under "Stay at Home" orders. If you are reading this from work, please go back to doing the 'essential' things you need to do and come back and read this later! If you are sick; I wish you a speedy recovery and hope that you are following the recommendations of your health care professionals. With that out of the way, I would like to talk about Covid-19. As a small business owner of a Transportation-Logistics company, my knowledge of the actual Virus is nothing... ( I should have become a doctor! Sorry mom) so this blog will focus on the impact it has had on small businesses like mine. The U.S Government has recognized the importance of Sma...
20 comments
Read more

You won your Online Auction? Now What?

Gateway Crate and Freight gets a lot of work from people who win online auctions from out of town. Most of these people are out of state and some are even in other countries. We have picked up auction items such as antiques, restaurant equipment, computers, water meter readers, and even a walk through metal detector. Many of our clients do their due diligence BEFORE bidding or purchasing items they may win. Contacting us for a quote on picking up, packing, palletizing, crating and shipping these items gives the prospective buyer a good idea about how much of a "deal" they are actually getting after factoring in packing and transportation. Those that buy first and figure out logistics later find out that the road to great deals online starts with understanding the costs of the entire project, not just the purchase price of the item. Lets look at a recent Gateway Crate and Freight auction purchase project. A Security company in Baltimore, Maryland won an online auc...
8 comments
Read more