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Trading is one of the most rewarding businesses out there. The boom in e-commerce and increased cross-border trade has boosted economies across the globe. Huge supply chains are actively involved in meeting the growing demands of customers. The per capita income and spending appetite has increased over the last few decades. Owing to the market potential many players are entering the domain to reap the benefits of the favourable markets. Naturally, there is a lot of competition among businesses. Industries are incorporating technologies like Artificial Intelligence, Machine Learning, Blockchain, Robotics etc. along with sophisticated software like Terminal Operation Systems, Enterprise Resource Planning (ERP), Management suits etc. to increase their productivity and precision.

Logistics, being an important element of supply chain management, plays a pivotal role in increasing the profitability of businesses. Logistics ensures that there is smooth transportation of raw materials from vendors, farms, mines and warehouses to the production unit. It also takes care of the transportation of finished goods to different destinations and the customers' doorsteps. 

A major portion of the transportation of goods is done by sea in shipping containers. However, the wheels of the economy freeze when there is a delay in the delivery of a shipment. There are many causes of delay during sea transportation which include unfavourable weather, congestion at the port and unavailability of material handling workforce and equipment. Another reason for the delay is the container rollover. It hinders the efficiency of the logistics and causes time and money wastage. 

Before discussing the causes of the container rollover, let us first know what exactly is container rollovers. 

Container Rollovers:

Container rollovers are an event when a container cannot be loaded into the ship that was pre-booked. In such cases, the shipment is delayed and remains idle at the seaport till it is loaded into another ship. The delay may vary from a few days to a few months depending on the destination. This causes huge financial losses and headaches for the shippers and frustration for the customers. 

Reason for Container Rollovers:

There are numerous reasons for container rollovers, some of which are listed below.

One of the primary reasons for container rollovers is overbooking. In the event that the ship is overbooked, there is no place for more containers to fit in it. This causes the rollover of containers. It generally occurs on ships from Asia to the US to Europe. 

Another reason for rollover is when the ships are rerouted or bypasses a port which was scheduled earlier. 

Sometimes the booked container together exceeds the allowed tonnage of that ship. This results in the rollover of the excess load. Other than mismanagement, rollover occurs when the ship encounters technical issues such as fuel availability, ship maintenance, breakdown of material handling equipment etc. 

Rollovers can happen when the forwarder fails to produce required documents and custom-related formalities. 

How to Avoid Container Rollovers

Rollover cost is exorbitant. According to a study by Lloyd's Loading List, it accounts for around 20% to 30% of all freight, especially from large Asian ports. Such wastage of money hampers the logistics operation and causes huge losses to the company involved in the trading. Hence there is a need to avoid rollover and sustain one's business. 

Here are a few tips to avoid rollovers. 

  • Book Container in Advance:
    It is of utmost necessity to book container well in advance to avoid the last-minute hassle. During the peak period or festival seasons, the ships are extremely loaded. It has been one of the reasons for rollovers. It may take 4 to 6 weeks between the time when you book container and your container actually set sail.

    It is advisable to book container 14 days prior to the sailing date. Also when you book container in advance you can plan other important things like arranging the delivery, warehouse and last-mile delivery. Nowadays many shipping companies provide services for container shipping booking online.

  • Keep Buffer Time:
    One of the best ways to avoid rollover is to keep a buffer time and flexible departure date. Freight booking must be done in such a way that it has some time for the shipment to arrive at a destination.
  • Split Your Shipments:
    There is an old saying which says, never put all your eggs in one basket. The same is true when you are in the trading business. Instead of sending all your booked containers in one ship, it is wise to split them into multiple small groups and send the small groups in different ships. For example, you have 5 containers for container shipping from India to the US. It is advisable to make separate bills for each container. So that all your containers will be loaded in different ships and the probability of your cargo reaching the destination increases manifolds. Chances are there that few of your containers will reach the US even if some are rollover. In that way, you can keep your commitment.
  • Choose A Reputed Freight Forwarder:
    The cost of the cargo is way too high. It is thus important to choose a  with years of experience in forwarding your shipments. Reputed logistics freight forwarders may charge you more but they ensure that our cargo shipment reaches its destination safely and on time. The chances of rollover are less because these freight forwarders use their influence to our benefit. Big freight forwarders also provide additional services like online container booking and container booking tracking.
  • Ensure Shipping Space With Premium Packages:
    The world works on money. So is the shipping industry. Although not ethical, some forwarders and shippers are paying extra money to secure space for their shipments. Sometimes the shipping company has a premium package for guaranteed space. One can avail of those benefits if the shipment has to be delivered urgently without the threat of rollover.
  • Avoid Peak Periods:
    Every business has high and low periods. One commodity is shipped in summer while some are in winter. Some items have demand during the festival season while some are during normal days. Naturally, the shipment traffic is more during the peak period and the chances of rollover are also high during such time. Hence, to counter this issue, if possible, we can choose to send our cargo outside the peak period to avoid rush and rollovers.
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