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PACKING FOR TRANSPORTATION & MARKING

1. Types of packaging Boxes

2. Containers for transportation of goods 3. Procedure for Packing

4. Cost of packaging 5. Marking

6. Types of Marking 7. Features of marking 8. Questions

wooden boxes and crates remain important alternatives for transport packing for export. This is particularly true for heavy and vulnerable products. The dimensions of the boxes should be decided keeping in view the need for safe transportation of the export product.

The exporter should be consider the following point as regards the selection of wood for making the boxes:

1. Wood density: It is an important factor as it determines the strength of the wood and how it holds the nails. One should use wood with the densities varying between 350 kg per cubic meter and 650 kg per cubic meter, as it will have sufficient mechanical strength. Higher the density of the wood, higher the strength of the wood; and vice versa. 2. Moisture content: The moisture content of the wood used

for packing should be around 20% as it would protect the wood against decay by mould and decay or any other kind of fungus. If the moisture content is more than 20% then the wood should be first dried up before making the boxes.

3 Quality of the wood: It depends on the number of knots, splits, decay or grain irregularities present in the wood. The wood with faults in the form of knots, splits, and decay or grain irregularities should not be used for transport packing for export.

Type of nails: Proper quality of nails should be used, as the holding capacity of the boxes would depend upon the holding power of the nails. Grooved or threaded nails have the maximum holding capacity. It should also be ensured that correct number of nails is driven in the wood allowing for proper spacing between two nails.

Miscellaneous Boxes

Sometimes, steel drums or the jute bags can also be used for export packing. For example, liquids can be exported in the steel drums and agricultural items can be transported in jute bags.

Containers for Transportation of Export

Cargo

The exporters can use containers for transportation of the export boxes. The containers are available in different sizes on hire. The standard lengths of the containers are 20 and 40 feet but there may be variations as regards their height and width and the load bearing capacity. The use of containers is very advantageous as the goods can be saved from damage due to mishandling or humidity or theft of goods. It should however, be ensured that the freight container is properly and securely packed (or stowed).

Before Stowing the Cargo Into the Container, The Follow- ing Precautions Should Be Taken:

1. The container should be first made ready for stowing of the cargo. Inspecting the container to ensure that should do this:

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• Its doors can be easily operated

• Its locking rods and handles function properly;

• There are no placards or labels remaining behind from the previous cargo; the container is water proof and dry inside;

• It is clean, free of dirt and cargo residue and odorless; and

• There are no nails or other protruding objects present in the container that might damage the cargo

2 It should be made sure that the boxes would not move around inside the container during the transportation. If this is not ensured then there is always a possibility of product getting broken. The mobility of the boxes and even the possible damage due to humidity can be prevented if certain precautions are taken at the time of stowing the container. These precautions are as follows:

• The space of the freight container should be utilized

completely if the cargo consists of boxes of the uniform size.

• In case it becomes unavoidable to leave some free space, then boxes should be stacked in such a manner that the free space is left in the middle of the con-tainer. The gap so created should be closed with the strong wood, plywood, second hand tyre, sand bags filled with waste paper or sawdust etc., to ensure that there remains finally no empty space in the container. This would help prevent damage to the cargo due to the movement of the boxes. In case it is not possible to completely fill the open space then efforts should be made to completely fill the floor space evenly and leave the empty space towards the ceiling only. This ensures proper weight distribution in the container.

• The heavy goods should never be loaded on the top of the light or the fragile goods.

• The wooden boxes and corrugated fiberboard boxes should be stacked sepa-rately in the container.

• The goods at the door end must be secured well to prevent the packages from falling out when the doors are opened.

• In case the cargo is liable to cause condensation, the exporter should use paper or other absorbent materials and place them on the top of the cargo. One should never use plastic sheets for this purpose.

• If the export cargo is sensitive to humidity then there is a risk of condensation and damage due to mould (fungus etc.), the ventilated container should be used. The boxes should also be stacked in such a manner to permit proper air circulation

Use of Cushioning Materials

The goods are likely to be damaged in the export boxes due to shocks and vibration or moving around of the products in the boxes during transport and handling of the goods. It is very important to prevent such damage by using appropriate cushioning material. There is a wide variety of materials available for cushioning of the products in the export boxes for transport. These materials are as follows:

• Corrugated board pads, separators and inserts to stabilize the product inside their

• boxes. These materials absorb moisture and can become soft in humid conditions. These are also easily recyclable and therefore, widely accepted for cushioning.

• Use of inserts prevents knocking a product into each other and stabilizes the item particularly the handicraft, the ceramics or the glass products etc.

• Craft papers can be used as cushioning wraps. These are known as environment friendly materials and are considered to be better than the air bubble film and expanded

polystyrene loose-fill chips.

• Paper cushioning is used for a variety of products, such as electric appliances, pocket calculators, glassware, handicrafts. Since the length of the cushioning sheets is adjustable, the material is well suited for wrapping of products with variable form and size.

Moulded pulp cushioning is easily recyclable and made from recyclable paper. It is use for a variety of products ranging from fruits and vegetables to mobile phones.

Expanded polystyrene in moulded form, blocks and chips; polyurethane form; formed polyethylene; air bubble films, shredded paper; rubberized animal hair; coconut fibers etc. Foamed or expanded plastics are at present the most widely used cushioning materials in industrialized countries. Different material densities are available to match each specific require- ment. Plastic cushioning materials have begun to face tough competition from paper-based cushioning, because of increas- ing environmental concerns.

Prevention of Mould, Mildew And

Corrosion

The basic function of packing is to protect the goods during transportation to their destination. One of the possible sources of damage to the goods is due to mould, mildew and corro- sion. The warm and humid conditions in the export boxes are ideal conditions for the growth of mould, mildew and corrosion. Products like textiles; garments, leather and all kinds of products made from natural fibers such as paper, jute, straw etc. are prone to these ill effects. Humidity may also cause corrosion to the products made of metals and may stain and discolor the leather products.

The exporters from warm or tropical climates such as India to temperate or cold climates of Europe should take necessary precautions to prevent the growth of mould, mildew and corrosion caused by humidity. The following steps can be taken to prevent damage to the goods due to humidity during the transport and storage:

• Keep storage and transport times as short as possible.

• Keep storage rooms dry. For most products, a relative air humidity of 50-60% is ideal.

• Make sure that all packing materials are dry. Especially wood and corrugated cardboard can contain a lot of moisture, which is drawn out of them during trans-port to drier climates. Wooden packages and materials should ideally have~ a moisture content of 12 - 14%, but in any case not exceeding 20%. Corrugated fiberboard boxes should not have a moisture content exceeding 8 - 10%.

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• Delicate products, such as textiles, garments and leather products must be well dried just before packing, for instance by ironing. Then they should be packed into plastic bags and closed airtight. This requires that the bags are of good quality, that they are not punctured and that the seams are properly sealed.

• If plastic bags are not available sufficiently or in consistent quality, the product should be wrapped first in a sheet of clean tissue paper and then put into the bag. The tissue paper absorbs some of the humidity and this reduces the harmful effects of humidity. The use of tissue paper as moisture absorbent material can be used for the packing of products like shirts, leather bags, etc. if these are packed in humid conditions and then transported by sea to countries with cold climates.

If storage and packing in humid conditions cannot be avoided, then the boxes made of paper based materials or the corrugated fibreboard materials or plastic materials should be used as they can be manufactured to have ventilation holes and are not sealed airtight.

In the case of expensive products, it may be economical to use special moisture absorbing agents inside the package (‘Silica Gel’ is one of the best known trade names). If these are used, special attention has to be paid to use a sufficient amount of the absorber for the specific package size.

There are also specially treated papers and plastic films or bags, called VCI (=volatile corrosion inhibitors), developed mainly for the protection of easily corroding machine parts, which can be used to protect products from humidity. As these are expensive, their use might be economical only for expensive products The influence of humidity can also reduced by correctly stowing the goods into the freight container

Procedure For Packing Goods

The first step in packing the goods for export is to select the right kind of box for packaging the goods and then select the right kind of box for transport of the goods. The aspects relating to selection of packages have already been discussed. In this section, the discussion is focussed on packing the goods for transport. The exporters should ensure that the goods are protected during transport and handling. This; requires a detailed study of the products to determine the requirements for packing the goods. Some of the products and the type of protection needed by them are given below:

Product Types Requirements

Textiles and garments Protection against Moisture, Insects, Dirt &Light Wooden products and

Lacquer ware Protection against scratching, moisture, microbes, insects breakage & light.

Leather products Protection against moisture, loss of flexibility by drawing, strain, & surface scratching. Stone ware, article of bones ,

glass ware , shells, ceramics etc.

Protection against breakage

etc.

Metal products Protection against corrosion,

tarnishing, surface scratching & deformity in metel product due to pressure

Paper products Protection against moisture

& light

Straw & similar product Protection against moisture & breakage.

Jewellery `protection against getting

loss or stolen & breakage. Actual packing can start as soon as the products have been carefully prepared and all the necessary packing materials are ready. The exporters should follow the points given below to ensure that the customer gets the goods in good condition. Articles with a delicate surface, such as polished metal, pol-ished wood, leather, etc. should be protected from scratching by wrapping them into a material with a soft surface. The wrap- ping material can be e.g. polyethylene film, tissue paper or cloth. The exporter should not use old newspaper for wrapping. It has a hard surface, which may damage a delicate product. The printing ink can also stain products.

When products are packed into retail packages and/ or transport packages, it is important to make sure that the products cannot move inside the package during transport. When there is no empty space between the product and the packing, the combina- tion is much stronger than when the packing alone has to endure all the stacking and transport stresses.

Closing and Sealing of the Boxes

The exporter should be very careful at the time of closing of the export boxes as most often bad closing is the most common cause of packing failure. The export boxes can be closed using the various closing materials namely:

1. Adhesives

2. Paper and plastic tapes 3. Stapling and stitching 4. Plastic and metal strapping

Self adhesive, plastic tapes are very much in use because of easier application in closing and sealing of corrugated paper- board boxes. It should be ensured that PVE material is not used for plastic tapes for the simple reason that the PVE tape creates difficulty in the recycling of corrugated fiberboard boxes. Polypropylene (PP) tapes should be used in preference to PVE as boxes with PP tapes do not present any problem in recycling of the corrugated fiberboard boxes. The most common plastic strapping used for fiberboard boxes is 13 mm wide PP strapping with a thickness of 0.5 to 0.9 mm. The strappings made of nylon and polyster endures tension longer than PP material. Steal strapping should be used for heavier transport packing such as wooden boxes and crates or fiberboard bins.

Cost of Packing

Packing and transport do not increase the value perception of the export product (it is true for even the domestic market), they do increase its cost and consequently the selling price. The exporter should not use cheap packing materials as it may

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increase the chances of damage to the products due to breakage of the boxes. This damage can be avoided by using better quality packing materials and the standard size boxes. This will be advantageous to the exporter as he would be able to make more profits by cutting down on the cost of the damaged goods. The following illustration will explain this point

lllustration

Two export firms- A&Company and B & Company - follow two different packing

Policies as Given Below

A & Company : ‘we cannot afford to pay more for packing - our normal transport damage is approximately 10%’.

B & Company : ‘Our packing policy is to ensure 0% damage to the goods in order to satisfy better our customers.’ Company B is thus, willing to pay more for improved packing and settle for a smaller profit per product.

Both companies produce the same type of products with the following cost and price structure: (per piece)

A in Rs B in Rs. Manufacturing cost 100 100 Packing cost 10 20 Transport cost 10 10 Cost price 120 130 Manufacturer's profit 20 10 Price at destination 140 140 Projected profit 20 10

Both the companies send an export shipment of 10,000 pieces to an importer in France. Company A loses 1,000 pieces (=10%) through damage during transport due to weak packing and there is no loss for B& Company as it ensured strong and quality packing by spending more on packing of the goods. The profit statement of the two firms is as follows:

A In Rs B In Rs.

Total Export Price L,400,000 1,400,000

Less Transport Loss 1,400,000 ---

Net Revenue 1,260,000 1,400,000

Less Cost Of The Product 1,200,000 1,300,000

Actual Profit 60,000 100,000

Actual Profit/Piece 6 10

Thus, A& company earns a profit of Rs. 6 per product as against the pro-jected profit of Rs. 20 and B &Company earns a profit of Rs. 10 per product as projected. Thus, the loss to A & Company is Rs 140,000. It will have to sell 7000 more pieces to earn the projected profit of Rs. 20 per product. (140,000/20). This is entirely due to the bad policy of A & Company, which did not want to pay more for packing and has ended up losing huge amount that would be spent to manufac-ture the additional 7000 pieces. This is not the only loss for A & Company; it will have difficulties in getting fresh orders, as the buyers would form poor image of the company. They may start buying from other exporters.

The above illustration very clearly highlights the importance of using quality packing rather than cheap packing. It is thus, more economical to use packing of sufficient quality rather than using too cheap packing. There is no need to overdo in the quality of packing, as it would be expensive. It is desirable to economize on the cost of packing without compromising with the quality of packing. Identifying the points where scrap and waste is created and then respond appropriately to reduce the cost can do this. The various stages for the economy in packing cost are as follows:

1. Purchase of standard packing materials and boxes. The exporter should use standard materials and the boxes of standard dimensions to economies on the packing cost. The supplier should always be given sufficient time for delivery of the supplies required for packing.

2. The exporter should always buy the proper quality packing materials rather than the low- priced packing. The advantage is that better quality packing reduces dam-age and not only this, it helps in increasing the demand for the goods as the percep-tion about the reliability of the exporter increase’s to deliver the goods in safe and sound condition.

3. The exporter should check the requirements of the export markets before ordering the packages or printing on the boxes. This should be done by directly asking the importer about the requirements especially with regard to the environmental regu-lations.

4. The packing materials should be used as economically as possible Le., the exporter should plan in such a manner that maximum number of packages can be taken from a given quantity of packaging/ packing material. This can be achieved by taking the assistance of the packaging professionals. A tightly fitting package is always considered the most economical package.

5. Strict control on the waste of packaging materials can result in considerable amount of saving in the packing cost. This can be achieved by providing proper training to the packing staff.

Marking On The Export Boxes

The exporters should properly mark the export boxes in order to ensure their proper identification, correct handling and

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