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1 Getting your products to your customers quickly and reliably is an impor- tant part of your business, but the rules and regulations of domestic and
international shipping can sometimes seem overwhelming. A good under-
standing of the basics will help you keep your products moving efficiently. For instance, you need to know how your product is defined by the truck- ing industry, how to correctly prepare your shipping documentation and
how to package or bundle your freight. You’ll also need to evaluate carriers and the variety of options that are available to you for getting your freight to its destination as quickly and reli-
ably as possible. If you ship internationally, you’ll need to know how to choose a full-serv- ice carrier who can help you with the extra documentation and logistics
requirements. Shipping and Receiving: A Guide to the Basics was designed to help you under- stand the common rules, regulations, and practices that go along with suc-
cessful shipping and receiving. We’re sure you’ll find the information and tips useful no matter where you ship, or what type of business you’re in! Tip 1: Avoid billing corrections. Contact your carrier representative to discuss
your product’s classification. 2 Freight Density When it comes to getting your products to your customer (or to the show- room floor) across Canada, one of the first things you need to know is your
product’s “density”. A shipment’s density is the most important factor to consider when deter- mining the rate that will be charged for transporting shipments within domes-
tic Canada. Shippers need to know how to calculate a shipment’s density so
they can properly describe their goods on the bill of lading. The total weight of
the shipment is divided by the total cubic feet, to determine the density. How To Calculate a Shipment’s Density Step 1. Measure the height, width and depth of the shipment in inches. Measure to the farthest points, including skids or other packaging. • On shipments with multiple pieces, repeat step 1 for each piece. Step 2. Multiply the three measurements (height x width x depth). The result is the total cubic inches of the shipment. • If you have multiple pieces, multiply the height x width x depth
for each piece. Take the results for each piece and add them together
to get the total cubic inches. Step 3. Divide the total cubic inches by 1,728 (the number of cubic inches in a cubic foot). The result is the cubic feet of the shipment. Step 4. Divide the weight (in pounds) of the shipment by the total cubic feet. The result is the pounds per cubic foot, or the density of the shipment. • For multiple pieces, be sure to add the weight of each piece together
before dividing by the total cubic feet of the shipment. • Round fractions to the nearest full cubic foot number. For example, if the skid weighs 500 pounds with dimensions of 42 inches x 48 inches x 48 inches: 1. Multiply 42” x 48” x 48” = 96,768 cubic inches 2. Divide 96,768 by 1,728 = 56 cubic feet 3. Divide 500 pounds by 56 cubic feet = 8.9 pounds per cubic feet (PCF), ie, the density of shipment Tip 2: Save money. If you ship many small shipments, try combining them.
Your cost per hundredweight (CWT) will generally go down.. Shipping and Receiving:
A Guide to the Basics Some Important Basics When Shipping
Within Canada: 3 Some Important Basics When Shipping Between
Canada and the United States or Mexico: Freight Classes When you’re shipping goods between Canada and the U.S. or Mexico, it is important to know your product’s “class”- how your product is defined by the trucking industry. How Freight Classes are Determined In the world of international shipping, different types of products-chemicals, machine parts, or toaster ovens-are defined according to their makeup. Each product “definition” is called a classifi-
cation. The class of your freight plays a prominent role in calculating how much your carrier will
charge you for transporting it. There are eighteen possible freight classes, ranging from class 50 to class 500. Several elements, including the value and density of your product, determine its classification. Ping-pong balls, for example, are class 500 (the most expensive class) because of their densi- ty-or the lack of it! Because ping-pong balls aren’t very dense, you can fill an entire trailer with
them without having much weight loaded. Since international rates are partially based on weight and density, the rate per hundred pounds for transporting ping-pong balls across the border would be higher than for something like
machine parts, which are heavy but take up less space. The NMFC Freight classes are catalogued in the National Motor Freight Classification tariff, commonly referred to as the NMFC. The NMFC is a publication for motor carriers containing rules, descriptions, and ratings of all commodities moving in commerce. The publication is used to classify freight for rating (cost)
purposes. Reimer Express is a participating member of the National Motor Freight Classification. With page after page of item numbers, commodity descriptions, and freight classes, the NMFC is an excellent reference book for the transportation professional. It describes both shippers’ and
carriers’ responsibilities. The NMFC includes: • A list of carriers who participate in the NMFC. • Descriptions of each item or commodity. • Rules specifically for shippers. • Packaging requirements. • Rules for freight loss and damage claims. In addition to defining the various classes of shipping commodities, the NMFC also assigns item numbers to each type of commodity. The item number is related not only to the commodity itself,
but to its packaging, the material from which the commodity is made, and other considerations.
Commodity classifications and item numbers are both factors in assigning transportation rates. Tip 3: Correct paperwork saves money. Even minor changes a carrier must make
to shipping documents may incur charges. Avoid these by being 100%
accurate on your bill lading. 4 How a Freight Rate is Calculated:
Determining Costs Most less-than-truckload (LTL) charges are stated as a rate per hundred pounds, or per “hun- dredweight”. Rates are based on several factors, including: • The distance your shipment is moving. • The shipment’s total weight. • The density of the commodity. • Your product’s susceptibility to damage. • The commodity’s value. • The commodity’s load ability and handling characteristics. When shipping within Canada, rates are quoted by LTL carriers on a point-to-point basis. Each ship- ping lane (Origin/Destination) will have its own rate for every hundred pounds you ship and will be
structured so that as the weight of your shipment increases, the rate per hundred pounds decreases. For
very light shipments, most LTL carriers state a minimum charge to cover the costs of moving it. Every commodity shipped within Canada is also subjected to a density application (see page 2). In general, the higher the density (PCF) of the commodity being shipped, the lower the rate per
hundredweight. For example, a shipment weighing 500 pounds and having a density of 5 pounds per cubic foot may cost $35.00 per hundredweight. But that same shipment, having a density of 12 pounds per
cubic foot (moving to the same destination) may only cost $25.00 per hundredweight. When shipping between Canada and the U.S. or Mexico, the last four elements (among other criteria) go into establishing the classification of a commodity (see page 3). Rates are also structured
so that as the weight of your shipment increases, the rate per hundred pounds decreases. Again,
most LTL carriers will state a minimum charge to cover the costs of moving light shipments. In general, the higher the class of your product, the higher the rate for every hundred pounds you ship between Canada and the U.S. or Mexico. For example, a Class 100 shipment weighing 500 pounds may cost $49.77 per hundredweight. But a Class 85 shipment-of the same weight (moving to the same destination) may cost only $42.86
per hundredweight. MATRIX OF WEIGHT BREAK AND FREIGHT CLASS FOR INTERNATIONAL SHIPMENTS CLASS L5C 5C 1M 2M 5M 10M 20M 50 34.30 28.32 24.25 23.04 17.58 15.74 10.47 55 36.94 30.50 26.12 24.82 18.93 17.41 11.58 60 39.59 32.69 27.99 26.60 20.29 19.08 12.69 65 41.94 34.64 29.66 28.18 21.49 20.27 13.48 70 44.64 36.86 31.56 29.99 22.88 21.94 14.59 77.5 48.10 39.72 34.01 32.32 24.65 23.85 15.86 85 51.90 42.86 36.70 34.87 26.60 26.24 17.45 92.5 55.89 46.15 39.52 37.56 28.64 28.38 18.87 100 60.27 49.77 42.61 40.50 30.89 30.77 20.46 The sample chart illustrates how a carrier’s rate table might look for rates between a point in Canada
and a point in the U.S. Note how the rates increase as the freight class goes up. Also note how the
rates decrease as the weight breaks increases. There is a similar rate table for every origin/designation
or zip/postal code combination serviced between Canada and the United States by an LTL carrier. 5 Reducing Your Freight Rates Besides negotiating with your carrier, there are other ways to reduce your rate charges: If your shipments are moving within Canada and are comprised of a num- ber of different types of commodities, you may be able to reduce your freight
charges by asking your carrier to supply you with rates that are predicated
upon different density applications. Let’s look at the following example to see how you can lower your freight charges on domestic shipments by requesting that your rates are subject to a
higher density application: Your company ships a number of different types of commodities, ranging in density from 5 pounds per cubic foot to 35 pounds per cubic foot.
Approximately 80% of your shipping activity involves the distribution of
paint in cans and the remaining 20% is comprised of various painting acces-
sories such as tape, brushes, rollers, etc. The density of paint in cans is much
greater than the density of the painting accessories. In this example, you
could request separate per hundredweight rates for your different commodi-
ties - one that is subject to a greater density application when shipping paint
in cans, and one that is subject to a lower density application when shipping
the painting accessories. This means that you - the shipper - get the benefit of being charged a lower rate when shipping paint in cans. Tip 4: Eliminate extra charges. Be ready to accept the shipment when the
carrier comes. Most carries will add a “second delivery” sharge if they
must make another trip to your business. 6 Before You Send Your Goods... No matter which carrier you select to transport your goods, there are a few important steps to take before a driver arrives for pickup: 1. Prepare your packaging Proper packaging prevents damage. All goods should be protected with
proper packaging in compliance with the NMFC. Packaging should be
appropriate for your product and strong enough to withstand transport.
When loading pallets, follow the guidelines on Page 9. 2. Label every piece clearly and completely Complete names and addresses on each piece are needed to ensure that
your shipment arrives intact. Label placement is important too. (For
hints, take a look at the examples on Page 10.) 3. Complete a bill of lading The bill of lading is a legal contract between you (the shipper) and the
carrier. It must state exactly what is being shipped, where it’s coming
from, and where it’s going, along with other important information. (See
the sample bill of lading on Page 8. 4. Select a carrier Your choice of carrier should be based on the goods you are shipping,
the services your carrier can provide, where your shipment is going, the
date by which the shipment should arrive, and the cost of these servic-
es. It’s up to you to evaluate the options based on your company’s needs.
Reimer Express, as one of the nation’s largest LTL carriers, offers services
that can cover just about any transportation need, including interna-
tional capabilities and time-sensitive shipments. 5. Place a pickup order To arrange a pickup, simply call your carrier. Most carriers, including
Reimer Express, will send a truck the same or next day. The carrier will
ask where the shipment is going, how much it weighs, if it is ready to be
picked up, how late the shipment can be picked up, and who is paying
the charges. Calling early in the morning increases your chances of a
same-day pickup. With Reimer Express you are able to place a pickup order anywhere in North America, online through www.ReimerExpress.com. 7 The Bill of Lading Your bill of lading is an important document. It acts as a receipt for goods, a contract of carriage, and a document of title. Take the time to fill out the bill of
lading completely and correctly, since this will help ensure error-free delivery to
your customer. A correct bill of lading also ensures an accurate invoice for you. If your company does not have its own bills of lading, you may purchase them from a local office
supply dealer or request some from your local Reimer Express representative. To fill out the bill of lading: 8 The Bill of Lading 12. Enter the “COD” amount to be collected on the bill of lading and if you want the carrier to collect the “COD” handling fee on receipt or on delivery. Typically, han-
dling fees are collected for “COD” amounts. Reimer Express’ bill of lading has a spe-
cial block for COD shipments. 13. Indicate whether a customer’s company cheque is acceptable for the COD.
14. If the shipment requires a specific temperature controlled environment, indicate the desired temperature setting. 15. State any special declared value of the goods, if additional liability is requested beyond the maximum liability coverage of $2.00 per pound, per shipment. A fee will
be charged for any additional liability. 1. Clearly print the shipper’s (the sender of the goods) and consignee’s (the receiver of the goods) names and complete addresses where indicated. Be sure to include postal/zip
codes! 2. Include any special notes or instructions, such as: • Billing information if invoice charges are to be sent to a “Third Party”. • Special account/reference numbers used internally at your company. • Purchase order numbers from your customer. • Special instructions for the carrier to ensure prompt delivery. 3. Enter the date you are giving the shipment to the carrier. 4. Enter the number of packages. (This is the number of pieces being shipped.) If a ship- ment is secured so that the individual pieces cannot be separated from one another, you
have one shipping unit, no matter how many pieces are in the shipment. 5. Place an X in the “DG” column if a commodity is a hazardous material. Special rules and requirements apply to hazardous commodities. Contact your carrier to discuss shipping
hazardous commodities. 6. Write a description of the articles. Include the material it is made from and common name. Remember, hazardous materials have special requirements. Your Reimer Express
representative can help you determine the specifications for your product. 7. Include the NMFC item number. Consult the NMFC or your carrier for proper item description and number. The carrier will identify the classification for you and your freight
charges may be based upon that. 8. Enter the correct weight of your shipment. If multiple commodities are being shipped, list the weight of each commodity separately. 9. Enter your company’s name (as the shipper). 10. Have your authorized agent sign the bill of lading. 11. Indicate who is responsible for the freight charges. “Prepaid” means the shipper will pay; “Collect” means the consignee (receiver) will pay and “Third Party” means the
freight charges will be billed to another location. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 9 Preparing Your Package Don’t ship your goods without proper protection. Many damage claims arise from improper packaging. Some packaging errors may even limit or
eliminate your carrier’s liability. The picture below should help you visualize how to best package and secure your goods. Heavy, bulky items should be placed on pallets for better handling. To maximize carton strength, stack cartons on the pallet vertically. You can
secure cartons to a pallet with banding, shrink-wrap, stretch-wrap, or break-
away adhesive. Cartons should be stacked squarely on the skid, with no overhang. Box flaps and corrugations should face up. Be sure the top surface is flat. Following these general packaging guidelines is one of your best bets for ensuring trouble-free shipping. 10 Proper Labeling Shipping labels must be placed on every piece of your shipment. The ship- per and consignee information must match the bill of lading information
exactly, and your labels must be legible and complete. Ideally, you should place labels securely on both the long and short sides of each piece. Special labels are required when shipping hazardous materials. Unless specifically provided for elsewhere in the NMFC, address markings must be located approximately as shown in the following examples-either a
top, a side, or an end. If more than one location is shown, you may choose
which one to use. Loads made from
different-size con-
tainers may not be
uniform enough to
have unit strength. Damage can occur if cartons
overhang the pallet, because
there is no support for over-
hanging freight in transit. Damage can occur
when a pallet doesn’t
have a flat top surface.
Place single containers
on an outside corner or
ship them loose. Pallet Overhang up to 32% Interlocked Pattern up to 50% Misalignment up to 30% Stacking strength is lost when pallets are improperly loaded: Barrels and Drums Boxes Pails Reels Bundles Bales Coils Rugs and Carpets Crates Bags 11 Receiving Freight... Besides shipping freight, most businesses also receive freight as a con- signee. Some things to remember when receiving freight: 1. Stay in contact with your supplier to find out when your shipment was shipped, what carrier it was given to, and an approximate arrival date. 2. On arrival, immediately inspect the shipment for signs of damage. 3. Compare the actual number of shipping units to the number listed on the delivery receipt. 4. Be sure to note any damage or shortage exceptions on the delivery receipt. Your Reimer Express driver/sales rep will help you receive your shipment and answer your questions. While he or she is there, compare the pieces of
freight you are receiving to the freight bill. When you’ve determined that the
condition and quantity of your freight is acceptable, the driver will ask you
to sign the delivery receipt. The driver will keep the original delivery receipt
and give you a copy. When a carrier receives a signed delivery receipt with no
exceptions, it is called a “clear” delivery. If a shipment is short or damaged, you should still accept delivery. It’s the duty of the shipper and the consignee to mitigate the loss. After you accept
the shipment, protect the shipment from further loss and file a claim for the
actual shortage or damage involved promptly. Just signing the delivery
receipt with a shortage or damage notation is not the same as filing a claim.
Your carrier should provide you with a form specifically for this purpose. The Invoice An invoice for the freight charges and other fees will be sent to the appro- priate party soon after pickup or delivery has been made, depending on
whether the shipment is prepaid, collect or billed to a third party. Questions
regarding the amounts shown on the invoice should be directed to your car-
rier. If you feel you have paid too much, contact your carrier and file an over-
charge claim. Tip 5: Improve your company’s customer service-use your carrier’s free 1-800
services. Available 24 hours a day, these services save you time and
reduce telephone expense. 12 Exceptions to the Rule: Damages and Claims Although carriers strive to make sure every shipment arrives intact and undamaged, problems do occur. If all or part of your shipment is lost or dam-
aged, contact your carrier to file a claim. Don’t delay! All claims (damage and shortage) must be filed within 60 days of delivery. After 60 days, the carrier cannot accept liability. If an entire shipment is lost
and never delivered, the claim must be filed within nine months after the
shipment should be reasonably delivered. Tip 6: Save time. Visit your carrier’s web site. Reimer Express offers shipment
tracing, rating & routing, proof of delivery, cargo claims status, pickup
requests, and much more at www.ReimerExpress.com. 13 Glossary of Common Terms Exceptions: An exception is any delivery in which the receiver or driver
notes a problem on the delivery receipt before signing it. Typically, excep-
tions concern shortages and damages. Shortage: Missing freight. Carefully count the shipping units you receive. If
you receive fewer units than indicated on the delivery receipt, tell the driver.
Write down exactly what is missing from your shipment on the delivery
receipt. Be specific. “Short one carton” is not enough. Include details such as
“short one carton containing six Acme television stands, model number A-
123.” If you need help, ask the Reimer Express driver. Visible Damage: Loose staples, open carton flaps, punctures, severe indenta-
tions, or wet spots may be signs of damage. Document the type and extent of
any damage on the delivery receipt. Again, be specific. Include details such as
“one Acme television stand, model A-123, serial number SN999 had its two
front casters broken.” Repeated or concealed damage could mean problems
with packaging. Concealed Loss: Shortage or damage not evident at delivery. If you discover
shortage or damage after delivery, call the carrier immediately. You will also
need to send a letter describing the problem. Again, be specific. Keep the freight and its packaging in the same condition they were in when you received the shipment. Your carrier may require an inspection by
a professional inspection service. You may also request an inspection. The
inspector will inspect the freight and packaging to verify damage and will
provide an opinion on the cause. The inspector will give you a copy of the
report and send a copy to your carrier. The inspection report is not a claim and does not affect the time limit for filing a claim. Tip 7: Save money. If it doesn’t need to be there the next day, don’t ship it
overnight! In other words, whether you are the shipper or the
consignee, communicate with your customer or supplier and make
sure you both understand the shipping requirements. 14 Special Services for Special Needs Depending on what business you are in and what kinds of customers you serve, you may require special services that go beyond regular LTL shipping.
Most carriers offer some services beyond their core LTL, such as: • The capability to handle truckload shipments. • Transportation and coordination services for trade shows and
exhibitions. • Climate controlled equipment for protection of “freezable” shipments
(freight vulnerable to damage by cold). • Product returns and other inventory-related services. • Hazardous materials expertise. Reimer Express has established services for all of these categories. Ask your carrier for a solution that meets your particular transportation needs. Taking
advantage of specialized services can save you time, cut costs and streamline
a significant part of your transportation duties. 15 Service Beyond North America Access to global markets is increasingly important for many companies.
Moving freight to destinations outside of North America, however, can be
more complex. Depending on your freight’s destination, you may be required to complete
additional documentation, such as commercial invoices or Shipper’s Export
Declarations (SED). Many countries also have additional requirements specif-
ic to their own customs laws and freight movement policies. If you’re not familiar with the process international shipping requirements,
contact your carrier for assistance. Your carrier can refer you to a freight for-
warder and/or a broker. A freight forwarder facilitates the export of goods out of the country to the
shipment’s destination, while a broker helps you import goods into a country.
Your broker will help clear your goods with customs and arrange for payment
of taxes and duty fees. Many brokers also serve as freight forwarders. Reimer Express, and other carriers, strive to make the process as easy as pos-
sible for their customers. They will move your shipment to the port, reserve
space on the steamship, have your goods loaded on a container, and facilitate
delivery. You can negotiate the starting and ending points of your responsibility for
the freight move with the consignee (receiver). You may choose to ship door-
to-door, port-to-port, or any other combination. If you ship door-to-port, for
instance, you pay your carrier only for taking the freight from your pickup
point to the port. After that, responsibility for payment lies with the con-
signee. Tip 8: Avoid delays at the border by providing proper documentation. Shipments
originating in Canada are subject to Canadian bill of lading contract terms
and conditions. Contact your representative for more details. 16 Service Beyond North America Proper packaging takes on additional importance when shipping goods overseas. Because freight moves by ships and in containers, your goods may
be subjected to movement and stress that would not occur over land. Make
sure your freight is secured to protect it from potential damage. Be aware that
condensation or leakage can also occur. If your goods must be kept dry, pack-
age them accordingly. Look for a full-service carrier when shopping for international transporta- tion service. Be sure to choose a carrier who will help you address the issues
and tell you what documentation is required for your destination. Reimer Express’ International Customer Service Centre can answer any questions you may have about shipping internationally. Call 1-800-INTL-REX
(1-800-468-5739) for an experienced international service representative. Tip 9: There are many different possible terms of sale. The terms of sale dictate
who has responsibility for the shipment at every point along its journey.
Terms of sale, therefore impact all aspects of the transportation of goods,
including who pays for which portion of the move, which ports the freight
will move through, insurance responsibility, etc. Contact your local freight
forwarder or customs broker for a listing of current incoterms to ensure
complete understanding of the business transaction. 17 Solutions for Time-Sensitive Shipments Occasionally you may find yourself up against a delivery date that can’t be
missed. Your customer may need your product in a hurry to avoid production
slowdowns. Or your customer is a just-in-time manufacturer who needs mate-
rials on an established schedule. Sometimes your customer will specify not
only a date for delivery, but an exact time as well. There are several choices for time-sensitive shipments, including air freight
companies, shipment expediters, and specialized LTL services. It pays, how-
ever, to weigh your options carefully. Air freight companies are generally a good bet, but you can expect to pay a
high price. You should also be aware that a large percentage of an air freight
company’s freight doesn’t travel by air at all, but moves by road and in trucks. Most LTL companies also provide some form of expedited freight service.
Before selecting a carrier, be sure you examine their service options carefully. Check to see if after-hours or weekend customer service is available in case
you need to get in touch with someone for pickup or for questions on your
shipment’s status. Investigate the overall flexibility of the service and ask if
dedicated equipment is an option. The kind of guarantee your carrier offers is very important. Some providers
include the guarantee as part of the service while others offer a guarantee for
an additional amount. Even though most expediting companies guarantee
your shipment will arrive on time, some still count late deliveries as “suc-
cessful” (depending on how late). With this kind of guarantee, you’ll still
have to pay a percentage of your charges, measured by how late your ship-
ment arrived. Reimer Express offers Time-Critical Services, with a guarantee that is straight-
forward: if your cross-border shipment doesn’t arrive as specified, you won’t
be charged at all. 18 Shipment Information Access to information about your shipments is an important part of ship- ping. The carrier you choose should provide an easy way to get rate quotes,
keep track of your shipments, inquire about the status of a claim, and other
essential functions. Most carriers offer a variety of ways to get the information you need. Check for convenient information-sharing capabilities such as 24-hour touch-tone
phone service, automated computer software packages, or Electronic Data
Interchange (EDI). Some carriers have sites on the World Wide Web where
tracking, rating, and other shipping functions can be performed while online. With Reimer Express’ array of shipment information services, you can: • Get service routing information and facility phone numbers. • Inquire about the status of a cargo claim. • Get up-to-date industry and company news highlights. • Request proofs of delivery by PRO number. If you need more specific information or have further questions about the topics covered in this guide, call your local Reimer Express sales or customer
service representative or visit our web site: www.ReimerExpress.com. Our
knowledgeable professionals will be happy to help you!