{"id":4440,"date":"2019-04-03T11:27:00","date_gmt":"2019-04-03T15:27:00","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=4440"},"modified":"2019-04-03T11:27:00","modified_gmt":"2019-04-03T15:27:00","slug":"container-shipping","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/container-shipping\/","title":{"rendered":"Container Shipping: A Crash Course"},"content":{"rendered":"<p>In <a href=\"https:\/\/www.thebalancesmb.com\/what-you-need-to-know-about-container-shipping-1361441\">1961<\/a>, the International Organization for Standardization (IOS) changed international trade forever.<\/p>\n<p>After container shipping was introduced onto the importing\/exporting scene in 1956 by Malcom McLean \u2014 whose contributions to modern international trade cannot be understated \u2014 the IOS introduced standardized container sizes. With standardized measurements making loading a ship much simpler, container shipping took off.<\/p>\n<p>International trade took off, too. Once prohibitively expensive, ocean-going freight dropped in cost, opening up the import\/export industry for smaller ventures to get a piece of the pie. By 1973, most ocean freight was containerized; today, shipping containers and international trade are inseparable concepts. If you\u2019re importing anything from overseas, chances are you\u2019re going to be dealing with ocean freight (unless you <i>really <\/i>love air freight, we suppose!). Even if you aren\u2019t, with containers spilling over to rail and truck shipping, importers over a certain size will deal with containers at some point.<\/p>\n<p>FCL, LCL, exams, container sizes, fluctuating costs\u2026 there\u2019s a lot to know if you\u2019re shipping overseas. Now that you know the history of container shipping, let us tell you how to do it <i>best <\/i>in the present!<\/p>\n<h2>Standardized Shipping Containers<\/h2>\n<p>Standardized shipping containers come in three sizes:<\/p>\n<ul>\n<li>20 feet, or 6.09 metres (the basis for the Twenty-Foot Equivalent Unit (TEU) system of measurement for containerized cargo capacity)<\/li>\n<li>40 feet, or 12.18 metres<\/li>\n<li>45 feet, or 14.6 metres<\/li>\n<\/ul>\n<p>More unusual (but still used) containers come in other sizes, such as:<\/p>\n<ul>\n<li>48 feet, or 14.63 metres (mainly used in Canada and the United States, usually only for rail or truck)<\/li>\n<li>53 feet, or 16.15 metres (mainly used in Canada and the United States, usually only for rail or truck; first introduced in North America by Canadian Tire in 1994)<\/li>\n<li>60 feet, or 18.29 metres (the newest container length in use. mainly used by Canadian Tire with the Canadian Pacific Railway; first introduced in North America by Canadian Tire in 2017)<\/li>\n<\/ul>\n<p>When built to these standard sizes, containers can be used in ocean, rail, and truck freight, simplifying the transport process.<\/p>\n<p>While the sizes are standardized, the actual builds of containers can vary widely. Those who are shipping fresh foods will want a closed, refrigerated container; someone shipping bulky rocks from a quarry may opt for an open-top container.<\/p>\n<p>Other container types include (but are not limited to):<\/p>\n<ul>\n<li>Dry cargo (the standard container, for anything and everything)<\/li>\n<li>Tank (for transporting liquids, gasses, and powders)<\/li>\n<li>Garmentainer (containers with clothing racks for shipping garments on hangers)<\/li>\n<li>Flat rack (for bulky cargo, like barrels)<\/li>\n<\/ul>\n<p>That\u2019s a lot to keep track of, huh? There are plenty to choose from, all determined by what you\u2019re importing. (Honestly, we\u2019re a little curious what container those <a href=\"https:\/\/www.theguardian.com\/world\/2019\/mar\/29\/garfield-phone-mystery-solved-in-brittany-35-years-later\">mysterious Garfield phones<\/a> shipped in\u2026)<\/p>\n<p>Choosing which container is right for your goods is determined by a number of factors \u2014 factors like cost.<\/p>\n<h2>The Costs of Shipping Containers<\/h2>\n<p>Unfortunately, calculating your container costs isn\u2019t as easy as just picking what kind you\u2019ll import your goods in. Different packing methods and transport contracts can affect your final expenses, as can <a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/peak-season-shipping\/\">shipping during peak season<\/a>.<\/p>\n<p>One of the primary cost considerations you\u2019ll have is to ship Less than Container Load (LCL) or Full Container Load (FCL). Unfortunately, it isn\u2019t as simple as deciding if what you\u2019re importing fills out a full container or not!<\/p>\n<h3>What is LCL?<\/h3>\n<p>Less than Container Load shipping means mixing your imports in with other cargo in the same container. You book a portion of the container, and only pay for that portion. This makes LCL shipping, on average, cheaper than FCL.<\/p>\n<p>However, LCL does have its downsides. Shipping LCL means you\u2019re at the mercy of other importers also filling up the container, which requires coordination that can take time. You may save money on shipping costs, but have a dry period with little to no goods to actually clear and sell. Keeping a reliable amount of stock on hand when shipping LCL might take some strategizing.<\/p>\n<p>If your primary concern is cost and time isn\u2019t an absolutely crucial factor, LCL shipping may be better for you.<\/p>\n<p>If you\u2019re more concerned about speedy delivery, or if you\u2019re just importing a <i>lot <\/i>of stuff, you should consider FCL instead.<\/p>\n<h3>What is FCL?<\/h3>\n<p>Full Container Load shipping is more expensive than LCL, because you\u2019re renting out an entire container to yourself. This means the full cost of transportation is included in your expenses \u2014 you\u2019re not sharing the load with other importers.<\/p>\n<p>Despite the extra cost, FCL shipping has one big advantage: it\u2019s usually faster. You load the container, you manage your contract with the shipper alone, and you receive the container alone. No coordination time with other importers means the only wait time you\u2019ll have is on your chosen shipping route.<\/p>\n<p>Because FCL is faster, some importers opt for it even if their goods don\u2019t entirely fill a container. If you\u2019re unsure of <i>your<\/i> shipping needs, <a href=\"https:\/\/clearit.ca\/services\/customs-consulting\">we provide customs consulting<\/a>!<\/p>\n<h3>Canada Border Services Agency Exams<\/h3>\n<p>While we\u2019re talking about <i>time <\/i>and <i>cost<\/i>, there is one other important factor for container shipping to Canada: <a href=\"https:\/\/www.cbsa-asfc.gc.ca\/security-securite\/mts_smc-eng.html\">CBSA exams<\/a>.<\/p>\n<p>Just how many containers CBSA examines varies. The vast majority of shipping containers coming through Canadian ports are not selected for examination, but if yours is, you might be in for a little wait. CBSA aims for all examinations to be completed within 24 hours, but at busier ports like Port Metro Vancouver, backlogs can extend the waiting period.<\/p>\n<p>In addition to time, there are some costs involved. CBSA itself charges nothing for exams, but transport costs can be passed on you.<\/p>\n<p>Everything CBSA does \u2014 the inspection personnel costs, equipment costs, anything else \u2014 <i>is <\/i>covered by the agency. It\u2019s in getting your container to a centralized examination facility that fees can fall on you. The facility operator charges your shipping line for transport and unloading costs, and the shipping line then may bill you.<\/p>\n<p>Unfortunately, there is no way to predict a CBSA exam. You just need to be prepared for uncertainties in your supply chain.<\/p>\n<p>\u2014<\/p>\n<p>There\u2019s no denying it \u2014 container shipping <i>is <\/i>international trade. When Malcom McLean launched the maiden containerized voyage of the SS Ideal X, a shipping revolution was put into motion that continues to this day (remember those new 60-feet containers?).<\/p>\n<p>Figuring out what methods of container shipping work for your organization can take a little work \u2014 hopefully, now you feel a little more equipped to make the best decisions. Happy importing!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 1961, the International Organization for Standardization (IOS) changed international trade forever. After container shipping was introduced onto the importing\/exporting scene in 1956 by Malcom McLean \u2014 whose contributions to modern international trade cannot be understated \u2014 the IOS introduced standardized container sizes. With standardized measurements making loading a ship much simpler, container shipping took [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":4441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[240],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4440"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=4440"}],"version-history":[{"count":1,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4440\/revisions"}],"predecessor-version":[{"id":4442,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4440\/revisions\/4442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/4441"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=4440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=4440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=4440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}