Street turns are an increasingly popular shipping method for importers and exporters looking to reduce their freight spend throughout their transportation networks. Now, some are calling for a slight decline in freight rates in 2023, but overall demand is expected to increase. According to Supply Chain Quarterly, “The S&P Global Transearch baseline forecast overall is for freight tonnage to increase 1.36% for 2023.” As a result, more importers and exporters are going to be on the lookout for ways to reduce overhead and stave off the risk of recession or losses. Street turns are the solution.
But what exactly are street turns, and how do they help to lower shipping costs for importers and exporters? In this blog, we will define street turns, explain how they can save money for importers and exporters, provide tips for maximizing the benefits of street turns, and discuss the potential drawbacks of this shipping method, as well as how to maximize their use.
What Are Street Turns?
A street turn occurs when a truck is loaded with a shipment at an origin location and then delivers that shipment to a destination within the same metropolitan area rather than continuing on a long-haul journey. This allows the truck to be used for another local pickup or delivery rather than returning to its origin empty.
Street turns are often used for time-sensitive shipments or have a high value, as they allow for more control and visibility during the shipping process. They can also be a cost-effective option for freight cost management of small shipments or shipments that do not fill an entire truck. Still, it’s essential to consider the landed cost, including import duty and taxes, and how global trade partners can manage those costs through supply chain business intelligence and technology. This makes street turns an ideal solution for warehouse-to-warehouse transfers and milk runs in logistics too.
Importers and exporters are concerned about export and import costs for various reasons. On the export side, export costs can include shipping expenses, tariffs, customs duties, taxes, insurance fees, and other related charges that make international trade quite expensive.
Similarly, on the import side, importers must pay close attention to their import costs to benefit from competitive prices while avoiding any hidden fees or unexpected expenses.
Importers and exporters must understand export and import costs to manage their budgets effectively. Suppose export or import costs are too high. In that case, it could put the business at a financial disadvantage, making it challenging to remain competitive in the global market and alienating potential customers.
How Do Street Turns Reduce Freight Spending for Import and Export Costs?
Traditionally, importers and exporters have relied on long-haul shipping methods, such as ocean or air freight, to transport their goods. These methods can be expensive, particularly for smaller shipments, and may also require additional handling and transportation fees to get the goods to their final destination.
In contrast, the street turns allow for the direct delivery of a shipment to its final destination within a metropolitan area, eliminating the need for additional handling and transportation. This can result in significant cost savings for importers and exporters, particularly for shipments that do not require long-distance travel.
In addition, street turns can often be completed more quickly than traditional shipping methods, making them an excellent option for businesses looking to reduce delivery times. Finally, street turns are generally less environmentally impactful than long-haul travel, as fewer miles are traveled, and the environmental impact of the transit is reduced. These savings can offset the additional expenses of international trade, including tariff rates, duty tariff expenses, and more.
How to Lower Imported Goods Costs.
Leveraging street-turn containers is crucial for reducing freight spending for importers and exporters. However, using street turns can present risks and challenges. A potential drawback is that street turns may only be available in some locations, limiting their use for companies that import or export from areas without sufficient local delivery infrastructure.
Street turns may also involve extra costs for handling and transportation, as shipments may require a transfer between multiple carriers before reaching their final destination. In addition, street turns may increase the risk of shipment damage as goods may be handled by multiple carriers and subject to additional handling and transportation.
Finally, coordinating with multiple carriers for street turns can be challenging; it requires careful planning and communication to ensure efficient and timely delivery. With that in mind, shippers can take a few actionable steps to overcome such risks, including
- Identify opportunities to use street turns whenever possible.
- Coordinate with a logistics provider to schedule street turns for multiple shipments.
- Work with a carrier that specializes in local delivery.
- Carefully plan the route and schedule for street turns, considering traffic patterns, delivery window preferences, and special handling requirements.
- Use supply chain technology, such as 121 Bermuda, to find the most lucrative street turn containers without spending countless hours searching.
These steps are all mitigating factors that form a complete freight spend analysis and help importers and exporters lower operating costs.
Improve Your Import and Export Operations With Street Turned Containers at Supra National Express
Street turns are a valuable shipping method for importers and exporters looking to reduce their freight spend. By allowing for the direct delivery of shipments within a metropolitan area, street turns can eliminate the need for additional handling and transportation, resulting in significant cost savings. However, it is crucial to consider the availability, costs carefully, and the potential risks of street turns before deciding to use this shipping method. Check out available street turn containers on 121 Bermuda today, and if you’re searching for available drayage rates for your loads, check out Supra National Express’s DrayMaster app today.
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