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What is Project Cargo?
Commonly known as project cargo logistics or project cargo forwarding, project cargo shipping is a highly complex logistics function. In essence, it involves the use of multiple different transport mediums and routes to have complex cargo transported under tight timelines. Due to the sheer complexity, project cargo shipping is often considered a hallmark of the global logistics and shipping industry.
How do you know if you have a Project Cargo shipment?
For starters, the type of freight being transported has to be high volume and high value. Moreover, a tight timeline is required in order to have these goods or materials carried to their end destination. Oftentimes, multiple different parts or materials are shipped from different originating points. Their coordinated arrival is required in order for the receiver to begin making use of them.
Commonly project cargo freight is global and requires precise planning by logistics experts. The mining, construction, oil and gas industries are examples of heavy funders of project cargo shipments due to the intricate nature of their cargo or equipment, some examples will be heavy machineries, industrial construction and mining vehicles as well as movement of entire factories broken down into transportable parts. Another example will be to think of the supplies needed to start a power plant or a wind farm.
How do you choose a logistics partner to handle Project Cargo?
Finding the right project cargo partner can be an involved process. There’s a lot you should look at, but aside from anything outside of a reasonable range, pricing should not make the list. Why? Any couple-hundred dollar savings you get up front during the quote process will easily be cancelled out ten-fold for any minor mistakes made during the shipping process.
You need a freight forwarder who understands project cargo, is experienced, and can serve as a source of value for offering recommendations and techniques to help keep your cargo moving efficiently and cost-effectively.
A freight forwarder’s international reach matters a ton during project cargo hauls. Think about the attention to detail placed on your project cargo just on the origin side – everything from preparation to loading, transporting, storing at the dock, loading onto the ship, and setting sail. It’s a crazy amount of effort and a lot of work goes into making it happen without mistakes. All of that could go down the drain if you work with a forwarder who doesn’t have a strong international reach with trustworthy overseas partners. You don’t want to work with a forwarder who will simply hand your project cargo off to the cheapest freight forwarder overseas for the destination-side work.
Plan in advance and keep all parties informed.
The core of all project cargo logistics operations is the pre-planning phase. Logistics companies consider the following during the pre-planning phase:
The financing aspect of transporting all the cargo
Regulations governing individual ports, shipping lanes and transportation
Precise timelines of various phases of the project cargo shipping
Risk management in the event that complexities arise
Customs and paperwork for all moving parts
Selecting partners to operate within the supply chain
The first step to executing a successful project cargo is effectively aligning all parties involved in the transportation. In other words, all of them need to be connected in advance, establishing a detailed plan that englobes the entire freight process.
The right planning is crucial and the utmost important step for project cargo logistics. From discussion with the supplier about the consignment to adding manpower capacity and the right equipment for loading, every step is critical and needs to be taken care efficiently. Proper planning can significantly reduce cost and eliminate risks during the transportation process.
We at 1UP Cargo has proven experience in Project Cargo with various industries including mining and machinery.
Contact us today to find out more about our Project Cargo offerings.