One of the biggest challenges manufacturers face is shipping. A continued shortage of drivers, rising logistics costs, and poor routing strategies are ongoing problems. However, the challenge only ratchets up when it comes to transporting large tubular components.
As a centrifugal casting foundry, Spuncast had seen its customers struggle with shipping woes for years. Several years ago, we began handling shipping for our customers, and have become adept at reducing our customers costs and headaches.
Here is a video and further information on some of the main transportation challenges we see across the industry, and some solutions we’ve developed by handling the shipping issues for our foundry customers.
1. Delayed pickups and split loads
According to the American Trucking Associations, the trucking industry is short 80,000 drivers, and without action, the shortage is predicted to double by 2030. That equates to less flexibility for shipping pickups and major capacity issues.
Because of this, many carriers are splitting loads, which occurs when one truck picks the load up, and another truck delivers it. It happens when the driver doesn’t get to all their pickup locations, or they get full too early. Both situations can result in late pickups – often as late as the next day or longer.
Solution: Leverage relationships
The shortage of workers means relationships matter more than ever. There is no easy answer, but having strong carrier connections can help manage the backup. That requires close communication and finding mutually beneficial strategies.
“It’s harder to lock in a driver when there are not enough flatbed drivers out there, and they can often pick and choose what load is best for them,” said Brett Collins, Spuncast Shipping Coordinator.
This allows us to monitor local, national, and world events to anticipate issues and leverage our network to modify and optimize shipping paths.
2. Increased LTL carrier pricing
The shortage of drivers and fuel surcharge fluctuations have put the demand for LTL (less-than-truckload) carriers at an all-time high. The industry is facing a domino effect giving rise to rate volatility issues.
Small to mid-size manufacturers who may not have entire loads to transport are being asked to stretch their shipping budgets further. And without the industry insight and the ability to ship in bulk, they are at a disadvantage in negotiating a better deal.
Solution: Consolidate shipments and manage schedules
Shipping flexibility is particularly important for transporting a large, awkward shape like a stainless steel tube. It can be made easier and more affordable by:
- Comparing carrier rates
- Consolidating shipments
- Optimizing schedules
- Being strategically located
We constantly monitor the current carrier rates and what’s needed to get the best price. We can consolidate and schedule orders so that the customer won’t be inconvenienced or incur unnecessary costs.
The proximity to shipping lanes, ports, and rail systems is another way we bring costs down. A central shipping location reduces mileage, allowing for more affordable transport options.
“Spuncast’s midwestern location benefits our shipping carrier network and gives us an advantage,” said Greg Whitman, Spuncast’s Vice President of Sales and Engineering. “We’re able to optimize shipping routes and coordinate orders to suit carrier routes and existing schedules.”
3. Mishandled freight
A tube’s size and hollow build make them particularly susceptible to damage. To ensure they arrive safely, steel tubes must be packaged, stacked, loaded, and unloaded using proven best practices.
However, conditions in the trucking industry can be harsh. And because the drivers must work quickly and are often untrained, best practices are often overlooked. There’s also the danger of further damage during transport over rough roads, through unpredictable turbulence, and across open seas.
Solution: Expect better packaging and loading
Transporting a large number of tubes at once is the best way to maximize efficiency. And using the appropriate packaging systems lessens the possibility of friction.
Stacking tubes safely on a flatbed truck is a specific skill that our experienced crew has had years to perfect. Preparing and packaging stainless steel tubes is key to properly maximizing shipping efforts, keeping costs and avoiding liability issues. Our shipping crew uses custom packing materials especially made to prevent tubes from shifting and being damaged.
“Our entire team has worked the docks for years and has extensive shipping experience with any size tubing,” said Brett. “We also know the drivers well and trust them to load and unload a flatbed, so our tubes arrive without damage.”
4. Repairing or replacing damaged or lost tubes
Coping with the delivery of a dented, scratched, or even worse, broken tube is often the beginning of a logistical nightmare called claims processing.
It starts with providing a slew of documentation, including proof of damage. Then there’s the back-and-forth on the phone with the carrier, not to mention contacting your foundry to order a replacement (at your expense).
It’s a process that slows production, delays your project, and can leave you with additional costs.
Solution: Have claims and replacements handled for you
Choosing quality shipping over price is the best way to avoid claims in the first place. We’ve been successful dealing with liability issues before they become a problem, so our customers don’t notice the loss at all.
“When we set up shipping,” Greg said. “If there are any problems, we replace the part and ship it to our customer, all while we’re making a claim against the trucking company, which can sometimes take months.”
5. Lack of international shipping knowledge
Transporting a tube from Milwaukee to Miami is relatively straightforward. Your tube is loaded onto a truck and then arrives at the destination a few days later.
Shipping tubes internationally, however, is another matter altogether. It’s a process that may include some or all of the following:
- Choosing transport type (air, sea, or ground)
- Meeting customs requirements
- Completing all the appropriate forms
- Additional fees and taxes
- Transferring from one carrier to another
Solution: Use a capable global shipping partner
Spuncast knows the ins-and-outs on generating U.S. and international customs’ paperwork, ensuring it always arrives at the appropriate time and place. Staying ahead of the red tape means our shipments are much less likely to get stuck at a port.
It also gives us more control in scheduling the driver to pick it up and take it to its final destination. That means you won’t be left dealing with an unsympathetic port authority.
How one company saved 25% on tube shipping
What started as a good arrangement for shipping stainless steel tubes often does not stand the test of time, especially in this climate. Even though changing shipping suppliers can be a pain, it is still a choice many manufacturers are making to keep their projects moving forward.
It was a decision long time Spuncast customer, Weir Minerals, had to make after a mishap occurred involving one of their regular carriers.
The carrier had hired an inexperienced driver who didn’t properly secure a truckload of tubes. As would have been expected, several rolled off in transit. Chaos resulted, causing severely damaged parts and a project that went off the rails.
“That’s when they decided to give Spuncast shipping a try,” said Brett. “Now, they’ve been a shipping customer with us for years, and we’ve never had a single complaint.”
Since switching to shipping with Spuncast, the company reports a 25% reduction in freight costs.
No-hassle shipments are possible
For manufacturers who want to combat shipping challenges and find more innovative transportation solutions, Spuncast is here to help. Our foundry-to-factory floor approach delivers savings through shipping.
We offer a prepaid and add option that can help streamline your shipping by providing:
- Competitive pricing
- National and international shipments
- Optimized route schedules
- Tubular product shipping expertise
We’re already helping manufacturers like you implement effective transportation solutions.
Contact us if you have questions about how Spuncast can make your life easier as your stainless steel tube shipping partner. We’re happy to show you how you can save time and money on your next shipment.