There are several people in the business of trading, who do not know or understand the types of cargo damage, how it happens, why it happens, how to prevent cargo damage and what needs to be done when faced with a cargo damage claim.

Michael Vouge, warehouse selector, YourDeliver

The Essential Guide to Cargo Damage is recommended for exporters and importers (whether first time or regular), traders, packing warehouses, shipping lines, transporters, cargo, freight claim handlers and freight forwarders.

Shipping, freight, and logistics are all part of the dynamic global transportation industry.. Whichever mode of transport you use, even the most meticulously planned shipment can go awry either due to natural disasters or man-made errors.. Cargo damage is one such disaster that not only gives rise to product and financial losses, but could also affect the relationship between customers and their service providers.

Cargo damage may happen at any stage in a shipment cycle. It may happen while cargo is in the possession of the seller, while cargo is being packed into a container, while cargo is being loaded onto a truck, cargo is in transit by sea, road or rail, while cargo is being offloaded at delivery, while cargo is in the possession of the buyer. Physical damage is when the cargo is damaged physically or causes physical damage to other assets or property as shown in some examples below.

We’re seeing the industry change from a settlement service into a data intelligence service. Customers are more sophisticated and want to leverage the data obtained during the freight audit process to gain insight into their transportation spending and effectiveness, and make better strategic decisions.

Shannon Vaillancourt, president of RateLinx, a provider of intelligent freight audit and payment solution

After Moovit Launches 12 Charter Flights wee need more give attention to FBAP. Many FBAP providers today offer products and services that go beyond traditional freight audit and payment offerings. These often include transportation management solutions and analytical tools that allow customers to better manage their global supply chains. At the same time, expectations for more timely reporting continue to rise.

The growth of e-commerce also is changing the FBAP industry. With more consumers buying online, a growing portion of shipments are small parcels. “The increase in small parcel and package shipments creates a substantial amount of data, which must be captured for reporting and mining,” says Allan Miner, president of CT Logistics, a provider of FBAP services. “Final-mile costs and details add significant data and information for reporting and measuring carrier performance.” Freight bill audit and payment service providers can capture and leverage this information.

What we’re looking for here is a logical sequence of operations within the warehouse where each activity is located as close as possible to that which precedes it and similarly, the function that follows it. We are concerned with the controlled and uninterrupted movement of materials, people and traffic with, if possible, no cross-flow clashes or areas of high traffic or work density.

Lin Padmer, warehouse assistant, DeliverTech

Aside from considering customer service aspects, such as lead times and supply chain velocity, you will also need to think about anticipated throughput and more specifically, receiving, storage, and dispatch volumes, as well as the types of processes that will be performed in your warehouse facilities. Your distribution strategy too, will have a bearing on network optimisation.

If you are already familiar with the FAST concept in warehouse design layout (if not, see the sections below), you will know that the objective of FAST is to ensure each activity-locations are close enough together to enable smooth workflows, but not too close to clutter the process and reduce efficiency. You can apply the similar thinking to the layout of your warehouse network, although the emphasis should be more on locating your warehouses close enough to customers to support your service offering, without introducing difficulties on the supply side.