Noatum Logistics analyzed the size, weight and timing of product being exported from China to determine if there were opportunities at origin to combine loads and reduce the number of shipping containers each month.
Negotiated higher-weight limits cut container usage
The customer suspected they were being overcharged for shipping. They were not using freight forwarders, instead allowing manufacturers to arrange for the ocean-freight shipping of the oilfield equipment from China to Canada. Cargo was shipped using fixed load plans with no optimization for larger batches.
Noatum Logistics implemented a load optimization plan, which combines smaller pumping units with extra parts from larger units. For their larger pieces, which normally shipped on flat racks, Noatum Logistics negotiated higher weight limits with the ocean lines. This resulted in drastically reducing the customer’s container count and ocean-freight costs.
Noatum Logistics saved the customer more than $24,000 on the first shipment handled for them. Estimated annualized savings are $150,000 for just one of the customer’s product models. Industry expertise and product knowledge in both China and North America contribute to smooth supply-chain operations. Since 2015, Noatum Logistics has saved this client approximately $3,000,000.00 in supply chain costs.