Amidst the dynamism of international commerce, businesses are always looking for ways to optimize their shipping operations. Breakbulk Express shipping offers a powerful solution, particularly for those dealing with high-volume shipments to single destinations. By consolidating individual orders into a single shipment, businesses can streamline customs procedures, reduce costs, and enhance overall efficiency. This article will explore Breakbulk Express shipping, its benefits and requirements, and how DHL Express can support your logistical needs.
What does Breakbulk Express mean in shipping terms?
Also known as open cargo shipping, breakbulk shipping involves loading items onto pallets, drums, crates or skids instead of large containers, making it easier to separate products so they can be shipped to different locations. It can help businesses that ship in bulk save costs and streamline processes. This type of shipment is popular among shippers that transport large quantities of items, such as electronics retailers, clothing manufacturers, and food producers.
How DHL Express handles Breakbulk Express shipping
DHL Express Breakbulk (BBX) is a shipping service that allows businesses to ship multiple products and consignments as a singular entity and under one air waybill and invoice, saving time and costs. These are the leading features:
Customs clearance simplified: International customs can be a real headache, but BBX simplifies the whole process. By bundling multiple shipments under one customs entry, it means cutting down on paperwork and potential delays.
- Efficient de-consolidation at destination: Upon arrival at the destination country, DHL Express' expert team meticulously separates the consolidated shipment into individual consignments. Each package is then prepared for final delivery, guaranteeing timely and precise delivery to your customers.
- Expedited delivery and reduced costs: BBX leverages DHL Express' extensive global network and time-definite express services to achieve speedy delivery times, typically within 3-4 days. This ensures the consolidation of shipments under one air waybill and invoice which translates to significant cost savings for businesses.
- Streamlined documentation: The BBX process simplifies documentation significantly. Instead of generating multiple air waybills and invoices for each individual shipment, a single set of shipping documents is created for the entire consolidated shipment.
- Enhanced supply chain efficiency: Shorter delivery times and less money tied up in inventory means you can react to market changes quickly. Say goodbye to stockouts and overstocks — BBX helps you stay ahead of the game.
What are the requirements for breakbulk cargo?
BBX shipping caters to a specific type of cargo; that which is unsuitable for containerization due to size, weight, or unconventional shape. This freight includes items like heavy oil and gas equipment, oversized vehicles, and even airplane parts. Essentially, if it's too large, heavy, or oddly shaped to fit in a standard container, it likely qualifies for breakbulk shipping.
E-commerce businesses can leverage the benefits of BBX with DHL Express by meeting the following account criteria:
- Contractual agreement: You'll need a formal agreement with DHL Express to utilize the BBX services.
- Account activation: The BBX service must be enabled on your DHL Express Commerce profile. Your local DHL Express support team or account manager can provide assistance with this.
In addition, certain operational criteria must be met for seamless BBX shipping on the DHL Express Commerce platform:
- Single gateway: All your shipments need to head to a single entry point in the destination country.
- Detailed line items: Provide comprehensive details about each individual shipment (often called "baby" shipments) within the consolidated shipment ("mother" shipment).
- Currency consistency: Keep it simple for customs – make sure all your item values are listed in the same currency.
- Specific customs invoice: Only a DEC (detailed customs) invoice can be used for the mother waybill, as this consolidates all line item details for customs clearance.
- Open parent ID limitation: Customers shipping BBX to multiple countries can have only one open Parent ID (associated with the mother shipment) at a time. Consider utilizing child accounts or completing shipments to one destination before moving on to the next to navigate this requirement.
How does Breakbulk Express compare to bulk/consolidated shipping?
While both Breakbulk Express and bulk/consolidated shipping offer ways to transport large quantities of goods, they cater to distinct logistical needs and cargo characteristics.
Consider these contrasting features:
The above overview illustrates that bulk/consolidated shipping excels at transporting large volumes of uniform cargo efficiently, while Breakbulk Express shipping provides the flexibility for handling diverse and irregularly shaped items.
The best method for your e-commerce business depends on what you're sending, its destination, and how you want your logistics to run.
Benefits of breakbulk logistics
Breakbulk shipping isn't just about moving cargo; it's about unlocking a series of strategic advantages that enhance your supply chain's efficiency and profitability.
Consider the following benefits of this shipping method:
1. Prevent shipment delays
If you ship in bulk – in containers – without separating out the products meant for different destinations, you will have to deconstruct goods into separate containers. This can delay the shipping process. Delays in deliveries and lost products could mean a decrease in customer loyalty and lowered brand impression, factors that can curtail your business’ e-commerce growth.
Breakbulk shipping is a way for export businesses to avoid shipping delays. With BBX, goods are not containerized, meaning they do not need to be deconstructed before being exported. The time taken for deconstruction and reconstruction is eliminated, the process of shipping is made more efficient, and delays are less likely to occur.
2. Save costs on storage and customs charges
As DHL Express separates shipments before they are exported, there isn’t a need to store your goods in the warehouse. Deliveries are made directly from manufacturers to customers, and the cost and time of storing goods are removed.
Furthermore, instead of having to pay for multiple import taxes and export customs clearance fees for each individual shipment, you can have all your parcels processed as a single unit. Consolidating shipments also helps you reduce the costs of duty and tax management fees. This ultimately allows businesses to save on shipping costs.
For example, upon partnering with DHL Express and engaging our BBX service, a major fashion conglomerate in India, Aza, reported savings on multiple fronts. The business reported 60% savings in banking fees, 5% savings on export clearance taxes, and 40% savings on its processing times, showing a clear indication of DHL Express’ BBX services in comparison to regular bulk shipping.
These impressive results showcase the clear advantages of BBX, particularly for businesses operating in countries with high tariffs, such as Bermuda, the Bahamas, and Fiji.
3. Reduce paperwork
With regular shipping, each shipment requires separate air waybills and commercial invoices to be processed by international customs. If you have hundreds of packages, that could mean having to deal with lots of paperwork.
With breakbulk shipping, however, you would not have to create airway bills for each shipment. A single shipping label and customs invoice are created for your consolidated shipment and submitted to customs alongside the information relevant to the products you want to ship. After clearing customs, your cargo is split at the DHL Express warehouses and delivered to their destinations.
4. Select multiple delivery locations
Under breakbulk shipping terms, your shipments are split into separate delivery entities upon arrival, which saves you and your business costs that are usually spent on storage, while the rest of your shipments are transported to the location of your choice.
What are the disadvantages of breakbulk cargo?
While Breakbulk Express shipping presents a multitude of benefits, it's also essential to consider certain aspects that might pose challenges for some businesses.
Tracking complexities
Because breakbulk shipments bundle multiple items together, tracking each individual piece can be a tad more complex than with containerized shipping.
However, DHL Express mitigates this potential hurdle by offering real-time tracking capabilities through the DHL website and mobile app. You can also opt for proactive notifications via email or SMS, ensuring you and your customers remain informed throughout the shipping journey.
Environmental impact
Breakbulk shipping, while advantageous in many ways, might require additional handling and utilize less space efficiently compared to containerized shipping. This could lead to higher fuel consumption and associated emissions. The use of specialized equipment like cranes for loading and unloading can also contribute to the environmental impact.
However, DHL Express is committed to developing eco-friendly logistics processes to mitigate these environmental challenges. One example is GoGreen Plus, a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. SAF is a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. SAF is specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by up to 80% compared to fossil fuels.
Industries that benefit most from Breakbulk Express shipping
Some industries gain substantially from employing BBX:
- Automotive: For the automotive industry, where prompt delivery of components is essential for smooth production, BBX offers a reliable solution. It efficiently handles the shipment of large and heavy automotive parts, optimizing logistics and minimizing transportation costs.
- High-tech: For the high-tech industry, where rapid product cycles and sensitive equipment are the norms, BBX provides secure and swift transportation solutions. It ensures that high-value items like semiconductors, servers, and large-scale batteries are shipped efficiently, reducing the risk of damage and delays.
- Technology and Manufacture: Businesses in this sector often deal with a mishmash of different products and shipment sizes. BBX steps in with a customized solution, making it easy to consolidate everything and streamline the logistics – from the factory floor to the customer's door.
- Consumer Products and Services: For retailers and wholesalers dealing with large consumer goods, such as furniture, appliances, or bulk food items, BBX enables cost-efficient shipping, reducing overhead expenses and improving service levels by ensuring product availability without the need for excessive inventory.
Breakbulk logistics best practices
To ensure the smooth execution of breakbulk logistics operations, consider the following.
Proper packaging
Secure packaging is key in breakbulk shipping to prevent any damage during transit. So, be sure to utilize robust packing materials and techniques that are appropriate for the cargo’s weight, size, and vulnerability.
Accurate documentation
Accurate and comprehensive documentation is crucial for seamless breakbulk shipping. This includes detailed cargo descriptions, accurate classification codes, and strict adherence to international shipping regulations. By meticulously completing all necessary paperwork, such as bills of lading, customs declarations, and packing lists, you can reduce delays during customs clearance.
Working with experienced carriers
When it comes to breakbulk shipping, expertise matters. DHL Express boasts extensive experience in handling diverse cargo types, ensuring shipments are managed with the utmost care and efficiency. With in-depth knowledge of global shipping regulations and a vast logistical network, rest assured that the transition will be smooth and timely.
Setting up DHL Express Breakbulk
Apply for a DHL Express Business Account. The DHL Express team will contact you to set up an account.
Set up DHL Express as a courier service on your third-party e-commerce platform. You will be provided access to your credentials to the DHL EXPRESS API (MyDHL API) so that you can integrate this into your website.
Start sending consolidated shipments by adding the BBX product code to your account.
When preparing your shipment, first generate your air waybill (AWB) as you would any regular shipment. This will be your parent AWB. Include important details such as the weight and dimensions of your parcel and both the shipper’s and receiver’s addresses and details.
After you have generated the parent air waybill (AWB), it can be used to create your child AWB. It is similar to creating a parent AWB, except that the parent AWB needs to be put into the order dialogue box.
Contact your DHL Express account manager if you have any trouble during the setup process.
Partner with DHL Express when delivering multiple shipments
DHL Express Breakbulk services can streamline your entire shipping operation, from costs to efficiency in clearing customs to less paperwork on your end. DHL Express is committed to offering faster deliveries and creating solutions for your logistics issues using the most advanced technology. A variety of add-on services are available and ensure your shipments are guaranteed safe arrival at their destinations.
Reach out to learn more about our breakbulk shipping terms and rates when planning your logistics strategy. Start by opening a business account with DHL Express, and take advantage of the breakbulk logistics services to set your business apart from its competition.
