Case Study – Oil & Gas industry

Pumping unit manufacturer: Bundled shipments cut container usage

Our customer manufactures, services and repairs pumping units for the North and South America oil and gas industry. Pumping units are built to the customer’s specifications in China and then shipped to drilling sites in the Americas.

The challenge

With each unit weighing approximately 32,000 pounds, the company faced high shipping costs for the pumping units sourced from China.

The strategy

Noatum Logistics met with the factory and warehouse manager in China and toured facilities to get a clear understanding of the situation and to discuss ways to optimize load plans. The company analyzed warehouse capacity, each pumping model’s bracing needs, and vessel requirements.

The solution

Load optimization plans were based on the needs of each equipment model and by shipping the pumping units in batches. By focusing on optimal batch quantities, the customer could reduce the number of containers necessary for moving multiple units at one time.

In addition, the solution altered the use of counterweights to distribute weight more evenly in the container to reduce the risk of leaning or unbalanced loads.

The result

For the initial model shipped under this plan, Noatum Logistics reduced the customer’s container usage by 20 percent and its freight charges by 13 percent.