INS AND OUTS OF CARGO ROLLOVER: CAUSES, CONSEQUENCES, AND MITIGATION

Table of Contents

1. What is Cargo Rollover?
2. Causes Behind Cargo Rollover
3. What Is The Likelihood Of My Cargo Being Rolled Over?
4. Consequences of Rollovers
5. Strategies to Minimize the Risk of Cargo Rollover
6. Frequently Asked Questions (FAQ) on Cargo Rollovers

In the intricate ballet of global trade, the smooth sailing of cargo from one port to another is the linchpin that holds supply chains together. However, even the best-laid plans can encounter the stormy seas of disruption, one of which is the phenomenon known as cargo rollover. You might have heard this also as freight rollover, shipment rollover, goods rollover, freight deferral, shipment bumping or the dreaded "container has been rolled".

There aren’t many bigger panics than expecting your cargo to follow schedule, and then suddenly being informed that your cargo has been rolled over to the next available ship. At this point, what can you do?

What is Cargo Rollover?

Cargo rollover occurs when a container scheduled to be loaded onto a specific vessel is left behind, despite booking confirmations and planning. This situation can lead to delays, increased costs, and significant logistical headaches for shippers and consignees alike.

Cargo rollovers can happen multiple times to the same container, and they can happen as well at different points in the voyage – your container can be rolled over at the origin port (right after it becomes the carrier’s responsibility), or it can be rolled over at transshipment ports, where they need to be unloaded to the port and then reloaded unto a new ship.

Causes Behind Cargo Rollover

Understanding the reasons behind cargo rollovers is crucial for developing effective mitigation strategies. The causes can be multifaceted, including:

• Overbooking by Carriers: To ensure vessel capacity utilization, carriers often overbook, anticipating some cancellations. However, when cancellations don't occur as expected, cargo can be rolled to subsequent sailings.
• Port Congestion: Ports overwhelmed with incoming ships and cargo can lead to loading delays, causing cargo to miss its scheduled departure.
• Documentation Discrepancies: Inaccurate or incomplete documentation can halt the loading process, resulting in rollovers.
• Operational Priorities: Sometimes, cargo with higher priority (e.g., perishables, hazardous materials) may displace other booked cargo.

It is important to understand that the reasons behind rollovers are not always disclosed, and most often than not you will just be informed that your cargo has been rolled over and be advised on the next available ship it will be loaded onto. Using a Freight Forwarder like Kerry Logistics can help you mitigate this risk, as we work with multiple carriers and depending on the situation, we can request priority.

What Is The Likelihood Of My Cargo Being Rolled Over?

The likelihood of cargo being rolled over depends on a variety of factors, including the specific practices of the carrier, current global shipping conditions, the specific route your cargo is taking, and external factors affecting shipping schedules and capacities. While it's challenging to provide a precise probability without specific details, understanding the factors that influence cargo rollover can help assess the risk.

Factors Influencing Cargo Rollover Risk

• Carrier Practices: Some carriers have higher rollover rates than others, often due to their booking practices, such as overbooking capacity to compensate for expected cancellations.
• Route Popularity: Popular routes with high demand for space are more prone to rollovers, especially during peak shipping seasons.
• Type of Cargo: Special cargo that requires specific handling or temperature-controlled containers might have a different risk profile compared to general cargo.
• Shipping Season: During peak seasons, such as before major holidays or due to seasonal industry demands, the risk of rollover increases due to higher cargo volumes.
• Port Congestion: Ports experiencing high levels of congestion may have higher rates of rollover due to delays in loading and unloading vessels.
• Global Events: Events like pandemics, natural disasters, or geopolitical tensions can disrupt shipping schedules and increase the likelihood of rollovers.

Consequences of Rollovers

The ripple effects of cargo rollovers extend beyond mere inconvenience, encompassing:

• Delivery Delays: The most immediate impact is the delay in cargo reaching its destination, which can disrupt supply chains.
• Increased Costs: Rollovers can lead to additional storage, demurrage, and detention charges, inflating the overall shipping costs.
• Lost Sales and Market Opportunities: For time-sensitive goods, delays can result in lost sales and diminished market presence.

Strategies to Minimize the Risk of Cargo Rollover

While completely eliminating the risk of rollovers may be extremely challenging, several strategies can significantly mitigate their likelihood and impact:

1. Build Strong Relationships with Carriers

Establishing a solid partnership with carriers can enhance your priority as a shipper. Regular communication and long-term contracts can provide more stability and reduce the chances of rollover.

2. Opt for Premium Shipping Services

Many carriers offer premium services that guarantee loading. While more expensive, these options can be a worthwhile investment for time-sensitive shipments.

3. Ensure Accurate and Timely Documentation

To avoid delays caused by paperwork issues, ensure all shipping documents are accurate and submitted well within deadlines.

4. Plan for Contingencies

Always have a backup plan. This could involve booking with multiple carriers, considering alternative routes, or building extra time into your shipping schedules.

5. Stay Informed

Keep abreast of global shipping trends and potential disruptions. Being proactive about potential issues allows for timely adjustments to your shipping strategies.

6. Choose the right Freight Forwarder Partner

Kerry Logistics covers all of the above mitigation strategies, and we have proven records on negotiating prioritization of our cargo specially during disruption times. Let’s have a conversation on your concerns and how we can make sure your expectations succeed:

Frequently Asked Questions (FAQ) on Cargo Rollovers

1. What is the average duration of delay caused by cargo rollover?

The delay duration can vary widely depending on the reasons for the rollover and the carrier's schedule. Typically, delays can range from a few days to several weeks.

2. Can cargo rollover affect insurance premiums or coverage?

Yes, frequent instances of cargo rollover and the associated risks can potentially affect insurance premiums and coverage terms. It's advisable to discuss these implications with your insurance provider.

You might want to read: how cargo Insurance can safeguard your business

3. Are certain types of cargo more susceptible to rollover?

Yes, less time-sensitive cargo or lower-value goods might be more prone to rollover compared to high-priority shipments like perishables or urgent medical supplies.

4. How do carriers notify shippers of a rollover?

Carriers typically notify shippers of a rollover through email or their online tracking system. The notice usually includes the reason for the rollover and the rescheduled shipping details, but oftentimes the reason might be not fully disclosed.

5. Is there a peak season for cargo rollovers?

Yes, cargo rollovers are more common during peak shipping seasons, such as before major holidays or during shopping seasons, due to increased demand and port congestion.

6. Can I claim compensation for a cargo rollover?

Compensation depends on the terms of your contract with the carrier and the specific circumstances of the rollover. In many cases, direct compensation may not be available unless a guarantee was part of the service agreement.

7. How does container weight affect the likelihood of rollover?

Overweight or improperly declared containers can be more susceptible to rollovers, as they may be offloaded to comply with safety and regulation standards.

You might want to read: VGM - your guide to compliance

8. What role does customs clearance play in cargo rollovers?

Delays in customs clearance can lead to cargo missing its scheduled loading, resulting in a rollover. Ensuring all documentation is correct and submitted on time can mitigate this risk.

9. Can I switch to another carrier if my cargo is rolled over?

Yes, you may look for alternative carriers if your cargo is rolled over, but this depends on the availability of space and the terms of your original booking agreement.

10. Does cargo rollover have any environmental implications?

Yes, cargo rollovers can have environmental implications. Delays and extended storage of cargo can lead to increased energy consumption and emissions from ships idling at ports or taking longer routes. Additionally, perishable goods may spoil if not transported in a timely manner, leading to waste. Efficient logistics planning and reducing rollovers can help minimize these environmental impacts.

You might want to read: carbon footprint unveiled - what your freight forwarder isn't telling you

Cargo rollover in ocean freight is a complex issue influenced by a myriad of factors. While it presents significant challenges to the smooth operation of global trade, understanding its causes and implementing effective strategies can help mitigate its impact. By fostering strong relationships with carriers, opting for premium services, ensuring documentation accuracy, planning for contingencies, and staying informed, shippers can navigate the uncertain waters of cargo rollover more confidently.

In the dynamic realm of ocean freight, adaptability, foresight, and strategic planning are your best allies in ensuring that your cargo reaches its destination as planned, maintaining the integrity of your supply chain and supporting the success of your business in the global marketplace. Kerry Logistics can help you mitigate these risks and find solutions that cater to your time and need.

Why Partner with Kerry Logistics

Selecting Kerry Logistics as your trusted partner isn't just a choice—it's a strategic move towards ensuring your success. Our commitment to excellence is not just a promise; it's a guarantee. With a global network that's both vast and meticulously managed, we stand head and shoulders above the competition. This means you benefit directly from unparalleled service quality, ensuring your supply chain needs are met with precision, efficiency, and minimal hassle.

Are you ready to elevate your logistics game and experience seamless support tailored to your unique needs? Let's discuss how we can bring unparalleled value to your business.