Every organizer in the exposition business has a favorite shipping or drayagestory (if you don't yet, just give it a while). Tom Harris saw his unfoldwhen he managed a sports show several years ago.
"One of our exhibitors had a golf cart to display in their booth,"remembers the President of Tom Harris & Associates Inc., an Indianapolis-basedmulti-show organizer. "Let's say it weighed somewhere around 1,200pounds.
"First, the contractor drove the cart off the truck. Then he droveit to the booth. That's fine; it made sense to do it that way. But theproblem came when the exhibitor was charged full price, as though he hada 1,200-pound piece of freight instead of a motorized cart that rolledto the booth under its own power."
A former general service contractor himself, Harris eventually got thecharges reversed, but the incident left him cautious when it comes to shippingand drayage.
He's not alone. Every show organizer -- from association directors tomulti-management executives -- should have a working knowledge of freightmovement and material handling to help save exhibitors money, alleviatemove-in and move-out headaches, and guarantee efficient and effective operations.Moreover, you should know whether these services are fairly priced or prohibitivelyexpensive for your exhibitors.
Common carriers
Your exhibitor has three choices for shipping displays and booth materials:common carrier, van lines or air freight. Each has its own pros, cons andpricing.
Common carriers, or trucking companies, include national firms suchas Yellow Freight System Inc., CF MotorFreight and Roadway Express, a hostof regional operations and numerous owner/operators. They all move freight,preferably in crates or on skids, and often transfer it in terminals orbreakbulks on its way toward the destination.
Loading and unloading increases the potential for damage and loss, butcommon carriers say they handle freight less than ever before. "We'vereduced our handling dramatically to compete with regional carriers,"says Bill Schwar, Director of Exhibit Services for Yellow Freight. "Handlingalso means cost to us, so it's to our advantage to reduce it."
Motor freight carriers also have begun to offer a variety of new exhibitorservices. Yellow Freight, for example, has a team of 12 managers who coordinateon-site show operations, while CF MotorFreight's exhibit team includes17 show specialists. CF MotorFreight also has added air-ride (extra-cushioned)trailers, long considered a van line marketing advantage. "Those trailersstay very busy," says Trade Show Division Director Fred Buonacorsi,"but we find even more people requiring dedicated trailers. They wantto ensure there's minimum handling."
Common carriers base their pricing on freight classification, weight,origin, destination and other factors. Regular customers often receivediscounts for shipping company products; the same "incentive"applies to shipping exhibit materials. While they will ship hazardous materials,motor carriers shy away from pad-wrapped or uncrated shipments. Shippingcrated material on a common carrier is usually the least expensive shippingoption, resulting in the most cost-effective drayage as well.
Van lines
Although common carriers claim they can carry 85 percent of the shipmentsvan lines do, companies such as North American, United and Allied van linesmaintain their reputations for hauling delicate exhibits such as computersand medical equipment. Van lines also acknowledge show customers as a significantsegment of their business and dedicate divisions and departments to theirservice.
"We have a fleet of 90 drivers who do nothing but transport exhibitsfor us," says Jim Lewis, Area Vice President, Exhibit Services, forNorth American. "It's about a $45 million-a-year business for us."
Van drivers often load their freight then leave it untouched until itarrives at its destination. They'll handle pad-wrapped, uncrated and unskiddedmaterial in odd shapes and sizes, but they won't transport hazardous materials;and they usually have minimum loads of about 400 pounds.
Air-ride cushioning is standard in the industry and remains an importantfeature, according to Gene Stukey, Manager of Specialized Services forUnited Van Lines. "We did studies that show an air ride takes 75 percentof the vibration out of the spring ride used on most trucks," he says.
Like the larger common carriers with 24-hour customer service departments,van lines pride themselves on tracking exhibitor shipments. At North American,for example, a transmitter atop each tractor ties that rig into a satellitecommunications system. "Our program automatically reads the latitudeand longitude of that equipment each hour," explains Lewis.
Van lines base charges on hundredweight (cwt, equal to 100 pounds),cube weight (the amount of space occupied by the freight) and distancetraveled, among other factors. Crated material costs less than pad-wrapped;and truck-load pricing can often be negotiated at a flat rate. Drayagesurcharges are quite common for those using van lines (more about drayagecoming up).
Air Freight
While common carriers and van lines move freight faster than ever --Yellow Freight claims it delivers 90 percent of its shipments in threedays or less -- the quickest service for last-minute shipments or back-to-backshows remains air freight. To move their shipments, exhibitors can choosefrom among carriers such as Emery Worldwide, Burlington Air Express andAssociated Air Freight, which have their own aircraft; and air freightforwarders, which reserve space on scheduled airlines and even competingair freight carriers.
Smaller, manageable exhibits are the norm, but some surprising showshipments go by air. Freeman Decorating Co. recently needed to move a 2,000-poundlobby-display truss out of Minneapolis before a storm delayed the shipment.Emery Worldwide's Trade Show and Convention Industry Group loaded the truss,beat the weather and made the delivery days ahead of schedule.
"We often ship items that are larger and more unwieldy," saysJimmy Weber, Freeman's Operations Manager. "Frequently, air freightis our only option because of the tight time frames we work with."
Air freight forwarders pride themselves on moving exhibit freight quickly."We're not tied down to filling planes or holding shipments untilflights leave," explains Charlie Zidek, Corporate Communications Directorfor Seko-Air Freight Inc. "We can also book air cargo space electronically,like travel agents do with passengers, on airlines like United. If a shipmenthas to be in San Francisco, we'll get it there the fastest way possible."
Air freight must be trucked to the airport, transported to the aircraftand hauled to the warehouse or show site, so sound packing is a must. Whenit comes to pricing, the package's weight and mass figures into the cost,as does time.
One word of caution: In the aftermath of TWA Flight 800's tragic crash,the FAA has instituted new requirements for transporting cargo aboard passengerplanes. Freight forwarders, air cargo cartage services and air cargo groundservices must obtain security endorsements from shippers. The endorsementsand other identifying information must be presented to the airline whenthe freight is tendered. Last minute consignments could be seriously delayedif the proper documents are not available.
Designating a carrier
Airplane, van or truck? The final selection is up to your exhibitors.But you can play a role in that decision, primarily by choosing an officialcarrier for your event.
The National Association of Television Program Executives (NATPE), forexample, recently named air freight carrier Emery Worldwide as the designatedcarrier for its annual show. "For a show like ours, exhibitors usinga common carrier experience more loss than the savings would pay for,"says Joan Press, Conference Operations/Services Director for NATPE International.
Despite the official designation, Press expects only 20 percent of exhibitorsto use Emery. Many television studios already have their chosen transporters."They're already getting discounts that nobody else could offer,"she explains.
As with most "official" carriers designated by show management,NATPE receives something in exchange. "They don't ship our materialsto the shows for free," Press says, "but it is deeply discounted.We're going to New Orleans for 60 cents a pound instead of something like$1.25 a pound for an exhibitor."
You won't always select the carrier for your shows; often, your generalservice contractor makes the call. GES Exposition Services recently announcedits new Preferred-Carrier Program, which designates five common carriersfor its shows. Benefits of using their preferred carrier include lowermaterial handling rates, priority delivery and guaranteed routing.
"All general service contractors have a preferred carrier, becausethey rely on them for pre-show storage and other arrangements to keep costsin line," says to Daryl Clove, GES Vice President, National Freight."When an 'official' carrier is named it has detracted from the useof preferred carriers. We would rather work with show management to coordinatethe selection, although some events might require an official van linebecause of certain kinds of shipments."
Contractors also gain an advantage when naming a preferred carrier.As show organizer Harris puts it, "That carrier is paying somethingto somebody somewhere, otherwise why would they be 'preferred'?"
When you designate a carrier for your show, remember to look at thebig picture. What works for exhibitors, how to coordinate with your contractorand how to keep your own expenses down are the most important considerations.
What about drayage?
Your exhibitors have shipped their goods to your show city -- now what?In a word: drayage, also known as material handling. Your contractor handlesthis multi-step process, including receiving material at an official warehousebefore the show or at the show site during move-in, delivering materialto the booths, removing and storing empty crates or other containers, returningcrates to the booths at show's end, delivering materials to the dock andloading them for outbound shipping.
Drayage remains one of the most controversial subjects in the show industrybecause everyone seems to have their own version and few can agree on afair billing method. "Exhibitors are pretty much in the dark aboutdrayage," says Harris. "They confuse it with freight and thinkit's the same thing." When they do get their bill, the charges areconfusing and, at times, exorbitant. "All too frequently, drayagecharges have been almost to the point of being fraudulent."
Along with labor, drayage is the single most profitable service forcontractors. If they can't make money there, they'll rarely handle yourshow. Still, your agreement should seek fair treatment and equitable chargesfor your exhibitors.
"There's no question that drayage has a real bad name in the industry,"admits Ernie Nichoson, President of Innovative Expo Inc., a contractorbased in Palm Springs, CA. "There are a lot of situations where what'sincluded is not fair, but I think few exhibitors or show organizers havea problem paying for good service at reasonable prices."
You can establish "reasonable" pricing for your show in anumber of ways. Ask other show professionals what their contractors chargeper hundredweight for drayage. Contact trade organizations such as theLas Vegas-based Exposition Service Contractors Association, (702) 263-1404,for input. And consult industry publications, such as Trade Show Week,which publishes an annual survey that includes average drayage rates throughoutthe country.
"It all has to hinge on that particular marketplace," explainsNichoson, whose basic drayage charge is about $36 cwt. "I can't chargewhat they do in Salt Lake City or I'd go out of business, but I don't chargewhat they do in New York either."
Innovative solutions to drayage challenges come from show organizersthat own their own contracting operations. Industrial Shows of America(ISOA) in Timonium, MD, for example, absorbed drayage duties when it boughtMid-Atlantic Decorators about nine years ago. "Now we have controlfrom dock to booth and back," says ISOA Vice President Chuck Cross.
During its manufacturing shows, ISOA charges exhibitors $2 cwt. lessfor drayage than they're used to paying in similar industry events. Thestill-reasonable profit allows the company to offer its distributor-showexhibitors extremely discounted material handling. Those arriving at ashow via common carrier with up to 5,000 pounds that can be unloaded byforklift pay nothing more than a forklift fee. "In one instance, wehad a national-show exhibitor who was charged $8,000 for dock to boothand back," says Cross. "Our charge was a $175 forklift fee."
Anticipating surcharges
Both shipping and drayage are subject to surcharges. The most commonlylevied fees are associated with van lines, uncrated and wrapped materials,overtime at move-in and move-out, and off-target deliveries that arriveat the contractor's warehouse before or after a specified date.
Last year, van line surcharges were addressed by a task force for theExhibit Industry Congress (EIC). The task force discussed contractors'needs to cover their costs and exhibitors' problems with how charges arelevied. "If a shipment is pad-wrapped or mixed and it costs more that'sokay, but when it's crated or skidded you shouldn't have to pay extra justbecause it's on a van line," explains Peter Mangelli, Task Force Coordinatorand President of the International Exhibitors Association. "We wanteda way to apply rates that are fair to everyone."
EIC suggests three terms be adopted by the industry: crated and/or skiddedshipments; mixed shipments (crated and uncrated); and uncrated, unskiddedor wrapped shipments. "The definitions are in circulation now, andwe're hoping that the industry voluntarily will use them to base theirrates," Mangelli says.
On the flip side, most contractors say van lines cost time at the dock,and they charge accordingly. "From my perspective, those surchargesare entirely appropriate," explains Nichoson. "If there are ninecrates on a van and I have to move six to get our shipments, that's timeand equipment. It's a very time consuming process, and if we didn't adda surcharge, we'd lose money."
Overtime represents another common drayage surcharge. Straight timeis generally considered standard business hours. Overtime may be anythingbefore or after, with double-time charges occurring late Saturday and Sunday."Move-in, though, is typically on a weekend," points out Harris."A show manager who's not on top of things doesn't realize the poorexhibitor is being gigged in a way that sends a $30 cwt. rate to $50 or$60 cwt. in no time at all."
Helpful hints
Some costs exhibitors incur are out of your hands, but there is stillplenty you can do to help keep shipping and drayage under control and operationsrunning smoothly. When it comes to shipping, your role should be as counselornot salesperson. Interview a variety of transportation companies, fromcommon carriers to air freight handlers, make a designation depending onyour exhibitors' needs and coordinate your efforts with your general servicecontractor.
In general, drayage charges can be negotiated during your bid processwith potential contractors. Make your decision, in part, based on averagesfor your venue. "The rate information is right there for anyone willingto look it up," says Nichoson. "Often show managers only lookat what they have to pay, without examining the total cost to exhibitors,and that's wrong."
To reduce surcharges, know what's going to be charged and why. If aweekend move-in hurts exhibitors too much, consider changing your dates.Nail down overtime and double-time levies with your contractor in advance.
Consider the ramifications of van line surcharging, especially if exhibitorswill move a considerable amount of equipment that way. Negotiate a reasonablecharge with your contractor. If your show is large enough to employ floormanagers, have them spot-check dock operations.
For exhibitors faced with back-to-back shows, you can act as liaisonbetween exhibitor, contractor and the shipping companies involved. "We'verun a whole group of trucks from one show to another," says UnitedVan Lines' Stukey. "It's a matter of coordinating with show managersand contractors to pack and move exhibitors through the hall and out tous as smoothly as possible."
Let those who know their industry suggest ways to save. Invite yourcarrier and contractor to make presentations to show management. Then budgetfor communications that thoroughly inform exhibitors about shipping anddrayage options. Consider a specific newsletter or brochure, perhaps inconjunction with naming your official shipper, that walks them throughthe freight process.
As the chief revenue source for the exposition industry, exhibitorsmust continue to have a rewarding, cost-effective show experience. Thatexperience begins long before your first attendee walks through the exhibithall door, when exhibitors start the search for an economical way to gettheir materials on site.
"Everybody in the transportation industry is realizing that ifwe don't help the exhibitors in a cost-effective way, it could be a majorhit to all of our businesses," says North American Van Lines' Lewis."We have to operate in a way that works for everyone involved."
Shipping Beyond Your Borders
Working with exhibitors on domestic shipping and drayage is one thing;sending them to a U.S. pavilion in Malaysia or a co-op event in Europeis quite another. If your clients will cross national borders to attendyour event, find a reputable international transportation company to movetheir displays and booth materials. "Try to use the same philosophyas you do for shipping domestically and you'll be lost," says JimKelty, International Division Director for Three Way International, basedin Sunnyvale, CA.
Chief among your exhibitors' considerations is shipment documentationand customs clearance. Companies such as Three Way and Lion ExhibitionFreight Inc. in Atlanta and federal organizations such as the U.S. Councilfor International Business (USCIB) can help provide requirement detailsfor particular countries.
"The thing that's often confusing for exhibitors and show managersis that every country, or even different cities within the same country,may have different processes and formalities," says Kelty. "Ratesvary considerably, too. Singapore, for example, is a free port that's astone's throw from Malaysia, which can be very expensive for anyone wantingto bring things in."
Avoiding duties and tariffs is another area in which transportationexperts can provide counsel. Options include using an ATA carnet, a documentissued by the USCIB that eases customs restrictions in nearly 50 countries(call the Carnet Helpline at (800) ATA-2900); and temporary importationtrade fair bonds, usually arranged by on-site freight customs brokers.
Timing becomes a highly variable component when shipping internationally.Sea freight may require two weeks to two months transit time, and it'snot uncommon for a shipment to require a month to clear port. Customs clearancealone can take anywhere from two hours to two weeks or more.
"A good exhibit forwarder knows the timing and documentation requirementsinvolved," says Frank Rettig, President of Lion Exhibition Freight."The best exhibit forwarder is the one you never hear about becausethat means there are no problems with the freight."
Choose your international transportation agent with care. Look fora company with experience both in working abroad and, specifically, inyour destination. Find out who comprises their network within that cityor country, and ask for previous-client references.
"Domestic freight forwarders make their money on volume,"says Kelty. "Those in the international marketplace do it on the qualityof service provided, and show organizers should take advantage of that."
