Challenge
The client needed to import cargo into a Foreign-Trade Zone (FTZ) located over 350 miles from the closest seaport. Due to COVID-19 market conditions, rail ramp container moves were risky, and most bonded truckers were unwilling to make long-haul moves. The few bonded truckers available had inflated their prices by over 80% above normal market rates. J.M. Rodgers (JMR) was tasked with finding a more cost-effective and reliable Port-to-Door solution.
Solution
JMR leveraged its extensive network of contacts, reaching out to over 15 different bonded truckers. Despite finding only two willing to handle the moves to the FTZ, the cost remained prohibitively high. JMR sought a sustainable long-term solution:
- Exploring Alternatives: JMR found that transloading and line hauling the cargo was significantly cheaper and had several reliable truckers available.
- Legal Compliance: After consulting with JMR’s trade council, it was determined that it was legal to move the cargo with a bonded trucker from the pier to a bonded warehouse and then use the bonded trucker’s license for the line haul to the FTZ.
Results and Benefits
By combining bonded and line haul truckers, JMR achieved:
- Cost Reduction: The bonded moves to the FTZ were accomplished at a much lower cost.
- Consistent Trucking Options: The line haul option provided a more consistent and reliable pool of truckers for long-haul moves, offering stability despite ongoing market challenges.
Photo by Saile Ilyas on Unsplash
