Record-breaking shipping volumes into the Ports of Los Angeles and Long Beach continue into Q2 and show no sign of letting up. This has contributed to container shortages and extremely high container shipping rates. In this article, we’ll explore a tactic to help mitigate some of the headaches associated with the current importing landscape: shipping overweight containers.
*March and Q1 information not yet available for the Port of Los Angeles
With such record-setting volumes of containers crossing back and forth over the Pacific, you might think that containers would be relatively easy to come by. You’d be wrong.
A recent CNBC article shows that the unprecedented pace of China shipping activity after the initial COVID-related slowdown in March 2020 has made empty containers a scarce commodity – with “three containers going out for every container that’s coming in.” This scarcity has caused the spot-rate market for container shipping to balloon. At the start of 2021, container spot rates from Asia to the U.S. West Coast were 145% higher than they were a year ago. Where companies might have paid around $2,000 per container before shipping resumed from China and Asia after the slowdown, they are now paying $7,000 or $8,000 per container.
One of the key ways that you can offset higher container shipping rates is to ship your freight in fewer containers by loading each container to its max load weight. In our experience, the overall throughput cost for import transportation is typically reduced by 15-20% when shipping overweight. During times of record-setting shipping volumes and sky-high spot rates, your savings could even be greater.
Importantly, while you will have additional costs for drayage, transloading and final delivery of the split load, these costs are significantly lower than the cost savings you enjoy by shipping fewer containers over the ocean. The inset graph shows the savings (17.9%) that a company shipping 1,000 standard containers can enjoy by shipping overweight containers during a relatively normal shipping season.
Products that are ideal candidates for overweight shipping include construction materials, lumber, liquids, heavy metals, and commodities like sugar, flower and grains.
If you’re shipping your products into the Ports of L.A. or Long Beach via overweight containers, Weber Logistics can handle the overweight logistics on your behalf. Our specialized 4-axle tractors can pick up your containers from the Ports and then transport them to our warehouse within the overweight corridor. From here, your products can be transloaded and prepared for final delivery. To learn more about our overweight container services as well as the 3PL additional services we provide, contact Weber Logistics today.