Universal Logistics China Solves Tricky Issue With Creative Solution

Universal Logistics Company Ltd. (China) recently won an OOG project of moving a set of equipment from a famous SOE located in an inland city of China to Brazil. We were required to arrange the entire logistics chain from cargo packing, pick up, until CIF Brazil port (Itaguai), totaling 9 X 40’ FR + 2 X 20’ FR in one shipment. Per the client’s cargo information/booking, there was only 1 x 40’ FR being over-width and over height, with the balance all in-gauge.

Upon placing our booking with COSCO, space was very tight, especially for such a big shipment of 30 TEUs allocation. But due to our good relationship with COSCO, they accepted our booking by reserving enough space for this shipment on COSCO’s partner vessel from Ningbo to Brazil directly.

Unfortunately, after packing at site, an additional 6 x 40’ FR were found “over-width” and “over-height” from its original “In Gauge” booking, which lead the total space required to increase from 30 TEUs to 90 TEUs.

With such a sudden increased volume, COSCO HQ really could not allow it on the scheduled partner’s vessel. But their most recent own vessel, COSCO NEW YORK, could not connect with the feeder via Ningbo. So, we were facing a very embarrassing situation - no additional space for this volume on COSCO ‘s partner vessel.

COSCO ’s own vessel can squeeze the space for us, but she cannot receive our shipment due to connection reason at Ningbo. At that moment, the cargo had completed loading and lashing on the Flat Racks and dispatched from factory to the port. If the shipment could not be shipped within the free time from China, all the port dues, demurrage and detention fees will occurred, and it will be for our account. Considering the cargo volume and the waiting time, it would be a huge amount. To top it off, all these will be counted as our “fault” --- not correctly declaring cargo dimensions.

Our situation was explained to COSCO HQ and was also well understood by COSCO HQ. They actively coordinated with their planning division, trade division, feeder operator and the t/s ports involved. Several solutions were discussed.Finally, they decided to let MV. COSCO New York accept our project, by changing the fixed route of transshipping via Ningbo, and let our shipment to t/s via Qingdao, which was not the usual route. In order to effect this solution, COSCO created a new route in their system for our shipment to transship via Qingdao. Though t/s via Qingdao can only have one day window for the feeder vessel to connect the above mother vessel, it is the best they can do for us. But the feeder vessel’s terminal in Qingdao is different from the mother vessel’s terminal and moving the bonded cargo between the two different port areas required a special permit and supervision by local customs authorities. All these applications and local operations were well arranged under the COSCO HQ’s coordination.

With the innovation and creative solutions, this over-booked project was eventually shipped out within the free time and smoothly connected on COSCO’s own mother vessel heading to Brazil.

This solution could only be arranged due to our strong and long-term relationship with COSCO HQ, and our client was impressed by our problem-solving abilities in dealing with this emergency. Following this project, another two projects were rewarded to us.

Universal Logistics Company Ltd. is doing well in OOG shipments with near daily business and we would like share our capable services with the WCA network.

Contact: Jimmy Liu <[email protected]>.

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