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: 29487
Continue reading 1 Comment

Most Recent Posts


Tag Cloud

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

Blog Archives