Case Study – Oil and Gas logistics

Oilfield equipment wholesaler

Negotiated higher-weight limits cut container usage

The challenge

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.

The solution

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.

The result

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.