A major Canadian manufacturer of finished high tech components was experiencing regular delays at U.S. airport hubs when shipping their products “Overnight Air” to U.S. destinations. Deliveries of these components were time-sensitive and expensive. Products were expected “Next Day AM”, so one or two day delays resulted in serious complaints from customers for both new products and replacement part shipments.
Based on Bay’s extensive experience importing products to and from the U.S. and Canada, develop a brokerage solution that would ensure on-time door-to-door AM deliveries for products to all states, eliminating delays at U.S. hub processing centers. This program had to include U.S. Customs brokerage services and be available Monday through Friday with Saturday delivery as an option.
Start the process with Bay Logistics “same day clearance” at the Canadian border. Then have the freight picked up by Bay’s own fleet of trucks and cleared at U.S. Customs by Bay Brokerage. After clearance into the U.S., the freight was categorized as domestic air freight, delivered and loaded at the local airport that evening and then dispatched for delivery to the customers the following day for morning on-time delivery.
This complete Bay Solution resulted in immediate positive feedback from the Canadian manufacturer’s customers throughout the U.S. virtually eliminating late deliveries. Additionally, the Canadian shipper enjoyed a 27% savings over the former method.
A major Canadian distributor was purchasing small volumes of goods manufactured in the US and importing them to Canada for resale. These product shipments were brought in by international carriers and subject to LTL/Small Parcel freight rates that were 30-50% greater than equivalent rates in the US. With their existing methods, this importer was experiencing regular delays, misdirected freight and excessive freight charges based upon international tariffs. Bay Logistics was challenged to find a more cost-effective and time-efficient method for transporting these goods.
Bay Logistics implemented procedures routing all orders from US vendors to its US border warehouses. Orders were received and interlined with Bay’s fleet of trucks offering immediate delivery services to the Canadian destinations. Additionally, Bay negotiated a reduction in rates from the US carriers and got many of the distributors’ US vendors to offer free delivery when shipped to a US address. Using its proprietary software platform, this method allowed for better tracking of the goods, better preparation for Canadian Customs review, and more timely deliveries.
Bay’s new approach eliminated unwarranted duty fees and penalties paid on hundreds of shipments, resulting in a cost savings of 38% and an average reduction in transit time of 2 days to all Canadian locations.