Case Sharing – Does 20 feet container worth it?

Below described a real case scenario, this has been one of the most frequently asked question by the customer towards our customer service staff. Today, we would like to take this matter as sharing.

All the details and information regarding the message from customer and product ordered will be kept confidential.

Mr. A has ordered a 20 CBM of cotton goods from China.

Soon after, he has started to think which method of import for the goods will be most cost-effective. This is because he only puts in about 5 to 10 CBM normally but this time it is the first time he is putting in for such a large amount, for about 20 CBM.

At this time, a sudden thought has came to Mr. A’s mind, that he remembered one of his relatives has undergone some import knowledges and his relative has once shared about using import Full Container Load (FCL) experience. Mr. A is then considering to use FCL for his goods.

Then, he started to deploy and calculate the cost.

During the costing process, Mr. A has found us and informed us that he wants to import a 20 feet container.

We have raised a question to him later:

May I know the reason behind of you to import a 20 feet container?

a) The goods are overweight?

b) Supplier mandatory requirement that they want to do tax rebate?

c) To save cost?

He answered c) to save cost.

Therefore, our customer service staff has make an explanation to Mr. A that importing a 20 feet container will cause the cost even higher.

Why?

This is due to the reason that commercial shipping company like us, what we do to provide a bargain price is that we will open up a 40 feet container, then we will gather all the consignment from our customers in the container and use the trailer to put them in all at once. Lastly, send all the goods for customs clearance. That is why the cost will be cheaper as usual.

If you open up a 20 feet container by yourself, it is just half of the volume of a 40 feet container which only save up to RM1000 from the cost. From this, the cost for one CBM bulk cargo will be much higher.

So, our staff gave advice to Mr. A to open up a 40 feet container instead of a 20 feet container if the starting point of Mr. A is to save cost.

The meaning of us doing bulk shipping is actually to maximize the benefit from saving cost in terms of supply chain management. In conclusion, consignment that is less than 30 CBM, it is better to go for bulk shipping which is the most cost-effective way.

After the explanation made towards Mr. A, he actually took a tumble on his decision before. Soon later, he went back home and made a new procurement plan. According to Mr. A, he has successfully save up to 20% of shipping cost in 2019 compared to 2018.

How to solve these import related issues? Don’t worry and come to us! Do let us know about your situation, we are able to give professional import information from your marketing standpoint.

Should you need any assistance on air shipping, sea shipping or other consolidation transport services, please do click on this link, join us now! 💁

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