"Why does it cost me more to move my shipment from the dock to my booth and back
again than it does to ship it across the country?"
You probably hear this quite often, and so do we. The following background information might
help you answer that question.
Material handling is labor intensive. There's more "handling" in material handling
than there is in shipping. Labor and equipment are expensive; therefore material handling is
expensive too.
When an exhibit is shipped from Los Angeles to Chicago for example, the materials are picked up
by a driver, but loaded by someone else. The driver hauls the materials from Los Angeles to
Chicago. Upon arrival in Chicago, someone other than the driver unloads the materials. The cost
for shipping includes services limited to the transport of materials from one point to another
and typically requires only one person - the driver.
Material handling can require the use of many trade unions and requires:
- Labor and equipment to marshal the vehicles bringing freight to show site
- Labor and equipment to unload and deliver the materials to the booth and verify the
shipment against the bill of lading
- Labor and equipment to collect empty crates and load them onto trucks for storage during
the show
- Trucks and drivers to haul the empties to an off-site storage facility
- Rental of storage facility
- Trucks and drivers to return the empties to the convention center
- Labor and equipment to unload the empties and return them to the proper booths
- Labor and equipment to pickup the repacked materials, check them, and re-load them onto the
trucks for outbound shipments
Frequently, material handling will take place during overtime hours after the close of a
show. The return of empty containers generally takes place throughout the night after the show
ends. It can take up to an hour for a forklift and crew to deliver or pick up one single crate
between the area where a truck is unloaded or loaded and an exhibitor's booth space. This delay
is caused by narrow aisles and congestion due to crates pushed into the aisles during short
move-in and move-out schedules.
Today's shows are becoming larger and turnaround times are tighter. Convention center
expansions are putting the squeeze on land previously available for marshalling yards and
storage facilities, and a boom in construction limits the availability of heavy equipment in
major cities.
In the past, trucks would either be staged along the convention center dock area or on an
adjacent street. Now, with so many trucks and so little space adjoining convention centers due
to expansion, space must be leased or purchased by the contractor. The cost of workers'
compensation and liability insurance has increased dramatically in recent years, increasing
material handling costs overall.
The challenge is to find enough space, labor and equipment to meet the material handling
requirements of shows, while working with show managers to develop pricing plans that offer
exhibitors the best value. Service contractors will continue to look for ways to improve
processes and handle today's increased freight volume more efficiently. |