Positioning

 

The transport of empty equipment from a depot to shipper’s premises or from consignee’s premises back to a depot as the empty leg of a carrier haulage transport

 

 

Ocean Cargo

Understanding Positioning in Freight Logistics: Your Guide to Empty Equipment Transport

What is Positioning in Freight Forwarding?

In the intricate world of global logistics, efficiency is paramount. Every movement, every piece of equipment, and every mile travelled contributes to the overall cost and timeline of a shipment. One critical, yet often overlooked, aspect of this process is "Positioning." At Ocean Cargo, we understand that mastering these nuances is key to providing seamless and cost-effective freight solutions for our clients.

Simply put, Positioning refers to the transport of empty shipping equipment – typically containers – from a depot to a shipper’s premises, or from a consignee’s premises back to a depot. This movement constitutes the "empty leg" of a carrier haulage transport, ensuring that equipment is precisely where it needs to be, when it needs to be there, to facilitate the next loaded journey.

While it might seem like a minor detail, efficient positioning is fundamental to the entire supply chain. Without it, containers wouldn't be available for loading, or they would accumulate at consignee sites, leading to demurrage charges and operational bottlenecks. Ocean Cargo's expertise in road freight and integrated logistics ensures that these empty movements are managed with precision, minimising delays and unnecessary expenses for your business.

The Two Key Scenarios of Container Positioning

Positioning primarily occurs in two distinct scenarios, both vital for maintaining the flow of goods:

1. Positioning from Depot to Shipper's Premises (Pre-Loading)

Before your goods can embark on their journey, they need a container. This scenario involves:

  • Request for Equipment: A shipper, having booked a consignment with a freight forwarder like Ocean Cargo, requires a specific type and size of container (e.g., a 20ft standard dry container, a 40ft high cube, or a reefer).
  • Depot Retrieval: The empty container is collected from a designated container depot, which acts as a storage and maintenance hub for the shipping line's equipment.
  • Transport to Shipper: The empty container is then transported by road (via truck or drayage service) to the shipper's warehouse or factory. This is the "empty leg" of the journey.
  • Loading: Once at the shipper's premises, the container is loaded with the goods.
  • Onward Journey: After loading, the now-full container is transported to the port for sea freight or to an airport for air freight, beginning its main transit.

Efficient management of this initial positioning phase is crucial to avoid delays in your production or dispatch schedule. Ocean Cargo coordinates closely with depots and hauliers to ensure timely delivery of empty containers, preventing costly waiting times.

2. Positioning from Consignee's Premises Back to Depot (Post-Unloading)

Once your goods have reached their destination and been unloaded, the empty container must be returned. This scenario involves:

  • Unloading: The full container arrives at the consignee's premises and the goods are offloaded.
  • Empty Container Status: The container is now empty and ready for return.
  • Collection from Consignee: A truck collects the empty container from the consignee's site.
  • Transport to Depot: The empty container is transported back to a designated container depot, completing its "empty leg" journey.
  • Availability for Next Use: At the depot, the container is inspected, cleaned if necessary, and made available for its next assignment.

Prompt return of empty containers is vital to avoid demurrage charges, which are penalties levied by shipping lines for holding their equipment beyond the agreed free time. Ocean Cargo's proactive approach to logistics ensures that empty containers are collected and returned swiftly, protecting our clients from unnecessary costs.

Why Efficient Positioning Matters for Your Business

While it might seem like a logistical footnote, the effective management of positioning has significant implications for your supply chain and bottom line:

Cost Control

  • Avoiding Demurrage and Detention: Delays in returning empty containers lead to demurrage (charges for holding the container at the port/terminal) and detention (charges for holding the container outside the port/terminal). Efficient positioning minimises these risks.
  • Optimised Haulage Costs: By strategically planning empty container movements, Ocean Cargo can often combine trips or choose the most cost-effective routes, reducing overall transport expenses.
  • Reduced Storage Fees: Prompt return to depots prevents containers from accumulating at your premises, saving on potential storage costs.

Operational Efficiency

  • Timely Deliveries: Ensuring empty containers are available when needed prevents delays in loading, keeping your production and dispatch schedules on track.
  • Smooth Unloading: Quick collection of empty containers after unloading frees up valuable space at your facilities.
  • Supply Chain Reliability: A well-managed positioning strategy contributes to a more predictable and reliable supply chain, reducing unexpected disruptions.

Environmental Impact

  • Reduced Empty Miles: While empty legs are unavoidable, optimising positioning can help reduce unnecessary mileage, leading to lower fuel consumption and emissions.
  • Better Resource Utilisation: Efficient movement of containers means fewer containers are tied up unnecessarily, improving the overall utilisation of shipping line assets.

Ocean Cargo's Expertise in Managing Positioning

At Ocean Cargo, we pride ourselves on our meticulous attention to detail across all aspects of freight forwarding, and positioning is no exception. With over 25 years of experience, we understand the complexities involved and have developed robust systems to manage these movements seamlessly.

Our Approach Includes:

  • Strategic Planning: We plan container movements well in advance, coordinating with shipping lines, depots, and hauliers to ensure optimal timing and routing.
  • Real-time Tracking: Our advanced tracking systems allow us to monitor the location of empty containers, providing transparency and enabling proactive problem-solving.
  • Strong Carrier Relationships: Our long-standing relationships with major shipping lines and haulage companies ensure priority service and flexibility, even in challenging circumstances.
  • Customs Compliance: For international movements, our customs compliance team ensures all necessary documentation is in order, preventing delays at borders. This is particularly crucial for movements to and from countries like the USA or Canada.
  • Proactive Communication: We keep you informed every step of the way, providing updates on container availability and collection/delivery schedules.

Whether you're shipping excavators and diggers to the UAE, or delicate wind turbine components to Australia, the efficient positioning of equipment is a foundational element of successful project logistics. Trust Ocean Cargo to handle these critical movements with precision and care.

Is positioning included in the freight rate?

Typically, the cost of positioning the empty container to the shipper's premises and returning it to the depot after unloading is factored into the overall carrier haulage charges. However, it's always important to clarify with your freight forwarder exactly what is included in your quote to avoid surprises. Ocean Cargo provides transparent pricing, detailing all components of your shipment costs.

What happens if an empty container isn't returned on time?

If an empty container is not returned to the designated depot within the agreed "free time" period, the shipping line will levy demurrage and/or detention charges. These charges can accumulate quickly and significantly increase the overall cost of your shipment. Ocean Cargo actively manages these timelines to prevent such charges for our clients.

Can I choose which depot the empty container is collected from or returned to?

Generally, the shipping line dictates which depot the empty container must be collected from and returned to, based on their operational needs and equipment availability. Your freight forwarder, like Ocean Cargo, will coordinate with the shipping line to identify the correct depot and arrange the necessary transport.

How does positioning affect LCL (Less than Container Load) shipments?

For LCL shipments, the concept of positioning is less directly relevant to the individual shipper. This is because your goods are consolidated with others into a single container at a Container Freight Station (CFS). The freight forwarder (or their agent) is responsible for the positioning of the empty container to and from the CFS. However, the efficiency of this process still indirectly impacts the overall transit time and cost of your LCL shipment.

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