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Holiday Shipping Season 2016 - Here we go again.


So another peak season is upon us and with the growth of e commerce year over year, this holiday shipping season is sure to bring more volume and more challenges. The number one challenge during this time of year is ensuring your items arrive safely to their destination. With so many packages and freight shipments running through the system, damage is the number one issue facing shippers.

It has been estimated that shipping packages between October 15 and December 15 increases your chances of damage to your shipment by 36%. In fact some major carriers have published statistics that show over half of their freight damage claims for the year occur in this 2 month period.

In a major study of online retailers most report that they plan on a 5% damage ratio of product being shipped during the year and another recent study indicated that the 3 major carriers UPS, USPS and FedEx have damage ratios of 11%, 10% and 7% respectively during the year.

The peak season deluge of shipments places a burden on all facets of the supply chain. During this time the transportation providers and fulfillment warehouses hire temporary employees to help meet peak season demand. Since the advent of cell phone video, we can view video after video of employees who just don’t care: throwing boxes out of trucks, over fences and even kicking boxes down the warehouse aisle.

Now don’t get me wrong, the vast majority of workers, even the temporary hires, work hard and take great care of your packages, but the sad truth is that, during the mad rush of the holidays - there are just more workers…who care less.

All the carriers have packaging guidelines, recommendations on how your items should be packaged so that your shipment can safely navigate through their system. These packaging guidelines are a great tool, but most packages that are damaged during the holiday shipping season are packed to those guidelines but somehow they still get damaged.

Now that I have given you a warning on the perils of shipping over the next 2 months, let’s take a look at a few of the mistakes people make and a few things you can do to protect your valuable shipments this time of year.


The biggest mistake most people make is not understanding some of the packaging guidelines. Do you understand that you have to use the correct box? That’s right, there is a correct box. Boxes are rated for strength. 

This is a certificate stamp off of one of our boxes. In this box we can ship up to 100 lbs. What do you think happens when your shipment gets damaged and it is in a box that has no strength certificate? What do you think would happen if I shipped 110 lbs worth of stuff in the box above? In both situations the carrier would deny any claim because the item was “insufficiently packaged”

The vast majority of boxes shipped unfortunately are 50 lb items shipping in 30 lb rated boxes.  In the freight world, recent changes to the Universal Bill of Lading has changed the wording so that shippers now must prove the carrier was negligent, rather than the carrier proving they were not negligent, this puts a higher burden of proof on those shipping items and more leverage for the carrier to deny your claim.

Another mistake many shippers make is shipping items without declaring a value or getting insurance.  When you ship with parcel or freight carriers declaring your value increases the cost of the shipment because you are buying an insurance commensurate with the value of the items you are shipping. In the freight world increasing the value of your shipment can increase your class and thus increase the amount you are paying per pound.

Those that don’t declare a value are relegated to only collecting the minimum coverage for the item (With UPS and USPS that coverage is $100). So if you ship an $800 item and the carrier damages it, the most you can get back is $100, that’s if you packaged it correctly!

The packing recommendations of having 2 inches of packing material around your item works fine until a 100 lb machinery part in a box is set on top of your glass Vase in its box. Meaning even when you meet the guidelines for packing materials using this amount of foam, paper and peanuts in the proper box that may still not be enough to protect your item.

Here at Gateway Crate and Freight we employ a number of methods to additionally protect the items we pack and ship, we think it pays to do more, if it’s really important that the item not get damaged. Let’s visit two of these:

Double Box – In some cases to protect an item we will pack the item to standard in one box (2 inches packing around item in the box) and then place that box into another box with even more packing around it. This picture is an example of a couple of smaller boxes packed into a larger box being filled with Styrofoam peanuts.

This packing method increase your chances of your package arriving safely. This also will add to the cost of your shipment however. The price of the extra box and packing, as well as paying more for shipping due to its larger size is something you need to evaluate, but it does improve the chances of your shipment arriving in good shape.

One issue even when items are double boxed is that, boxes are sent down miles of conveyor belts during the sorting process where they can snag on equipment, tumble over multiple times and in some cases completely fall off. To eliminate this treatment we recommend crating.

Crating - Another method we use is wood crating. Providing a wood cover to your shipment greatly improves the chance of successful delivery. It makes it increasingly difficult for other freight to be placed on top or fall into your package and damage it Because of the plywood exterior (Pictured below).

Again this method certainly costs more, even more so than the double box, because the wood materials and the man hours to cut and assemble the wood for the crate is a big cost, as well as adding weight and size to your shipping cost, but it is the best way to make sure your item arrives in good condition.

Another good perk to shipping in a wood crate is that the parcel carriers do not put wood crates on the conveyor belts to tumble over, fall off, or get caught on equipment, instead wood crates travel through the system in a more direct manner, usually managed by personnel responsible for “Special care” shipments. (Wood, staples and nails, unlike cardboard could damage their sorting equipment)
   
Especially during the peak season it may make a lot of sense if you are shipping something valuable or irreplaceable to take the added steps necessary to ensure shipping success. We recommend you take the extra packaging steps if you really want your shipment to arrive in good shape and not damaged 

Gateway Crate and Freight is a 3PL focused on specialty packaging services and along with Gateway- Optimum Transportation offer commercial and residential clients door to door packing and shipping services for domestic and International shipments. Toll free 855-474-4685 or visit www.gatewayot.com and www.gatewaycrateandfreight.com for more info    

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