Inbound Logistics | August 2024

High-Value Shipments THE SECRETS TO SUCCESSFUL HIGH-VALUE DELIVERIES

sentimental value, and it can’t be other value that’s not related to the replacement of this item. When you accept the value of this kind of delivery, make sure you understand how it’s packaged. It should be packaging that’s as close to the original as possible, or that has been professionally done. “The next thing is the way that it’s handled. If you’re shipping a laptop or a server that has business-critical data on it, pick a vehicle that allows you to ship it in the safest possible way.

Getting a high-value delivery from point A to point B means mobilizing the right people, systems, and timing. Here are some tips for success in this high- stakes vertical from Customized Logistics & Delivery Association (CLDA) members. “Our specialty lies in high-cost, high-touch medication

delivery for complex diseases, often directly to patients’ homes. Success hinges on exceptional drivers and robust systems. Drivers need to be meticulous and caring, fully aware of the critical nature of their cargo. Our geofencing technology ensures deliveries only occur at the correct location.” –Ryan Schwalbach, CLDA Board Member & President NOW Courier “First, determine that it’s high value, which relies on the customer being able to explain why it should be treated that way. Is a $13-million check high value? No, because it’s only worth the paper that it’s written on. But if you’re delivering a statue to a museum that has a declared value (and is insured as such), that’s high value. It can’t be

“Make sure you do the delivery on your most urgent service. It’s all about protecting the chain of custody. When delivering that very valuable laptop with a declared value of $110,000, on-time and intact, you’d better collect the signature from the customer. That signature declares that the package has been delivered to them intact and in good condition. That completes the chain of custody.” –Ron Libman, CLDA Member and US Messenger Chief Customer and Business Development Officer 8 TIPS FOR HANDLING HIGH-VALUE DELIVERIES 1. Secure packaging. Use quality materials. 2. Insurance. Insure items fully. 3. Tracking. Use GPS tracking. 4. Secure transport. Consider armored vehicles. High-value deliveries require clear and constant communication between the carrier and the shipper. That means carriers must provide specific delivery windows, do driver pre-calls to notify when arriving, have drivers in uniform or wearing badges to clearly identify themselves and do real-time proof of delivery with pictures. –Ruth C Correa CLDA Board Member and Chief Executive Officer, Cheetah Final Mile 5. Proof of delivery. Require ID verification. 6. Communication. Keep all parties informed. 7. Training. Train staff on protocols. 8. Contingency plans. Prepare for emergencies. –Jessica Marino CLDA Member and 24/7 Enterprises Operations Manager

CALCULATING CARGO VALUE

Knowing the value of a commercial shipment helps determine shipping costs, insurance premiums, and customs duties. Here are some common ways to measure cargo value: For commercial shipments, invoice value is the most common method. The value is based on the commercial invoice, which includes the cost of goods, freight charges,

insurance, and other expenses. Sometimes, the retail value is used, especially for high-value goods or when the invoice value doesn't accurately reflect the item’s worth. Other factors to consider include: Currency. Declare the shipment’s value in the currency of the destination country. Customs duties. The declared value affects the amount of customs duties that are owed. Insurance. The value determines the insurance coverage required. Shipping costs. The cargo value can influence shipping costs, especially for high-value items. Under-declaration. Declaring a lower value than the actual value can lead to legal issues and difficulties in case of loss or damage. Over-declaration. While accurate declaration is important, overvaluing items can result in higher customs duties and insurance premiums. For more complex cargo valuations, consider consulting with a customs broker or freight forwarder.

12 Inbound Logistics • August 2024

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