Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in shipping wine

An article in the February 11 issue of Bloomberg BusinessWeek caught my eye and got me thinking about another way of reducing freight costs.  Here is the idea.

Hardys became Britain’s best-selling Australian wine brand by selling wine for as little as $5 a bottle, despite the 37 percent surge in the home country’s currency since 2009.  To do that and earn a profit, Hardys changed their paradigm for shipping wine.  Accolade Wines, the producer of Hardys, came up with the idea of shipping the equivalent of 32,000 bottles of wine in a 24,000 liter plastic bag.  The company reduced shipping costs by $3 a case by moving the wine 10,000 miles to a bottling plant that is a two hour drive from London.  The bottling plant receives the shipping containers via truck each day.

Australia’s wine industry that generates the equivalent of $5.8 billion in annual sales, now ships more than half of its overseas shipments in bulk.  The wine makes the 40-day trip to Europe in plastic “bladders.”  Richard Lloyd, Accolade’s global logistics manufacturing director stated:  “We don’t ship glass around the world; we ship wine.”

The BusinessWeek article highlights that shipping in bottles can add 25 cents per bottle to the cost.  Shipping wine by the case fills a ship with containers of bottles.  A third of the volume is taken up with bottles and cartons.  While a 20-foot container can hold 9,000 liters of bottled wine, it can carry a 24,000-liter bladder at slightly higher cost.

While shipping freight in bulk is not new, it is not commonplace for certain commodities.  For low cost products, that typically move in bottles or cans (e.g. no name fruit juices or tomato sauce), “deferred packaging” may help reduce freight costs.

...
Hits: 29460
0
Continue reading 1 Comment

Most Recent Posts

Search


Tag Cloud

marketing derailments Ferromex $75000 bond Whole Foods Dedicated Trucking NAFTA Hudsons Bay Company NCC trade David Tuttle Transportation 360ideaspace 2012 Transportation Business Strategies. Jugaad Doug Davis 3PLTL Social Media in Transportation RFP Canadian truckers Entrepreneur 2015 Economic Forecast TMS US Economy FMCSA Broker driver shortages broker security hiring process Canada-U.S. trade agreement YRC Twitter Management drones Freight Rates Freight Capacity Trump Reshoring Bobby Harris selling trucking companies freight forwarders BlueGrace Logistics Consulting Dedicated Contract Carriage Trucking CSA scores NS technology shipping wine shipper-carrier roundtable Werner Freight Carriers Association of Canada University of Tennessee Canada's global strategy CP Rail Scott Monty Transplace Muhammad Ali Wal-Mart BNSF CN Canadian Transportation & Logistics Masters in Logistics Grocery Transportation service Carriers e-commerce Dan Goodwill Omni Channel LTL FMS UP home delivery small business 2014 freight forecast Warehousing risk management NMFC Global experience Success mentoring Freight trucking company acquisitions consumer centric Horizontal Supply Chain Collaboration Right Shoring carrier conference IANA Load broker freight cost savings buying trucking companies Conway dimensional pricing USA Truck Cleveland Cavaliers energy efficiency Driving for Profit Canada fuel surcharge Distribution freight broker freight agreements Yield Improvement Retail 2014 economic forecast routing guide Truckload Sales transportation newspaper New York Times MPG last mile delivery Fire Phone broker bonds freight rate increases Software Advice business start-up ShipMax Politics Freight Recession FuelQuest Map-21 Tracy Matura Rail Packaging Keystone Pipeline EBOR tanker cars Deferred Packaging truck driver transportation audit natural disasters CRM US Housing Market ProMiles Facebook bulk shipping CN Rail capacity shortages autonomous vehicles rail safety Freight Management Comey Schneider Logistics Crisis management US Manufacturing Transportation Buying Trends Survey driverless US Election shipping freight costs Load Boards Otto 3PL 2014 freight volumes freight audit Swift pipelines Leadership coaching freight transportation Outsourcing Sales Donald Trump driver Spanx transportation news CSX truck drivers Microsoft Business skills Blogging Training New Hires solutions provider economic forecasts for 2012 Finance and Transportation Canadian economy ELD Training Amazon TransForce Transport Capital Partners (TCP) Transcom Fleet Leasing the future of transportation Career Advice Canada U.S. trade US Auto Sales 2013 Economic Forecast Infrastructure Inbound Transportation Freight contracts Driver Shortage peak season Derek Singleton Sales Management cheap oil Associates Business Strategy Retail transportation Climate Change Education Transloading capacity shortage LinkedIn freight transportation conference Harper Davos speech Loblaw Stephen Harper Trade Vision Rate per Mile Accessorial Charges dynamic pricing Global Transportation Hub freight transportation in 2011 Surety bond Life Lessons CSA Crude Oil by Rail FCPC President Obama Adrian Gonzalez financial management Regina KCS automation freight bid freight payment freight audit freight payment online shopping Celadon Job satisfaction future of freight industry Freight Matching professional drivers shipper-carrier contracts Emergent Strategy customer engagement shipper-carrier collaboration Rotman School of Business Search engine optimization TMP Worldwide Blockchain supply chain management Success failure entrepreneur Railway Association of Canada Colilers International freight RFP Toronto Canadian freight market home delibery Social Media APL employee termination Business Transformation Strategy LCV's Failure CITA Shipper Pulse Survey JB Hunt network optimization robotics Sales Training intermodal Freight Shuttle System economy Shipper Doug Nix MBA FCA

Blog Archives