Many customers request shrink
wrapping rather than crating
to save money. Image courtesy of
MEI Rigging and Crating

Special report: Changes impacting the de-installation, crating, rigging and transport sector

December 26, 2012
by Nancy Ryerson, Staff Writer
When transporting medical equipment, all parties involved must keep their eyes firmly on the road, so to speak. One mistake can delay arrival, send cargo to the wrong destination or even damage delicate equipment. And there are plenty of complications that can get in the way these days, such as new national and international regulations, stricter and more expensive insurance requirements and more intense training for crews.

But qualified companies get the job done, and with so much practice dealing with last-minute demands and changes, it’s no wonder transport tends to be a steady sector that adapts well to twists and turns in the economy, too.

“Business has been up 35 percent since last year,” says Victor Cruz, president of Logical Solution Services, a full-service international logistics service provider.

Some companies have needed to diversify business to stay profitable. Shadow Transport Inc., a Long Island, New York-based rigging, moving and transportation company specializing in moving large, sensitive equipment, has shifted focus to the medical world rather than graphic arts industry, where it has noticed a drop-off in moves of printing presses, cutting machines and bindery equipment. “At least here in the New York area, there will always be a need for medical upgrades, especially since the hospitals and imaging centers closest to us are some of the leading centers in the country,” says Samantha Williams, vice president of operations for the company.

MEI LLC in Texas has also seen growth, though J.D. Silvers, sales manager, says offices in other parts of the country have experienced varied levels of success in business.

Ambrose Rigging, meanwhile, has seen some parts of its business drop while medical has stayed reliable. Brandon Transfer, a company specializing in crating and rigging, says it’s considerably ahead of last year’s numbers in the medical field. “We’ve especially had more overseas work,” says Steve Lewis, president of the company.

The economy has been a mixed bag for Estes Express, a national and international LTL (less than truckload) carrier. Account executive Duff Law says more companies are using the company because they do not have enough products to fill an entire truck. However, he says business has leveled out in his company’s third quarter. “While we have lots and lots of customers, those customers who last year were shipping 20, 30 or 40 shipments a month now are shipping five or six,” Law says.

Roadblocks and regulations
For the transport industry, rules of the road are constantly in flux. Last year, new driver hour laws went into effect, limiting drivers to 11 hours of driving after 10 consecutive hours off-duty. There was talk of that rule changing again this year, but the Federal Motor Carrier Safety Administration could not demonstrate that a 10-hour limit would be more beneficial to public safety than an 11-hour limit.

However, the agency did alter the 34-hour restart provision, which allows drivers to reset their weekly 70-hour limit after two days of rest. It now must include two periods between 1 a.m. and 5 a.m. — a time block studies have shown to be key to the body’s circadian rhythm and sleep quality.

Companies say such changes have a safety benefit but can be financially challenging to adjust to.

“It means you need to hire more drivers, which increases your costs,” says Law.

Repercussions for violations have also become more severe. According to the DOT website, those who drive or allow a driver to work three or more hours beyond the driving time limit may be subject to maximum penalties.

Certain regulations also may vary from state to state, which can sometimes create logistical challenges.

“Here in Texas, you can ship larger equipment without escorts, but in Oklahoma you’ll have to put an escort on that same load,” notes Silvers.

Riggers, too, have noticed an increased focus on safety regulations and certification requirements.

MEI Rigging and Crating plans a move.
Image Courtesy of MEI Rigging and Crating

“Even if you’ve been driving a forklift for 15 years, now you have to have a card that says that,” says Williams. She says that while certifications can be challenging to maintain, having them can sometimes give a business an edge if other companies’ crews do not go through the same levels of training.

Globetrotting transport
One recent change in international regulations could turn out to be a plus for the air transport sector. In June of this year, the European Commission and the U.S. Transportation Security Administration (TSA) agreed to recognize each other’s air cargo security systems, noting that the two practices were similarly vigorous.

That easing of restrictions could easily be overturned in the event of tions a recent report by research company Business Monitor International.

Either way, transport companies have certainly grown accustomed to the challenges, changes and costs of transporting products via air or sea.

“It changes all the time, but we’ve been doing that for 50 years and we have our own broker service that will assist in the documentation to make sure that there’s a smooth transition into the country that it’s going to,” says Law.

Cargo requirements are often highly specific and vary from country to country. For example, regulations require that wood used for crating must be heat-treated or fumigated and stamped with a quality/treatment mark to keep pests from traveling with the cargo, Ambrose Rigging President Fran Ambrose explains.

Even shipping across the Canadian border has its challenges.

“Canada is in the process of changing how they do their paperwork, which will slow down transportation into their country,” says Law. “They want more time to look at the paperwork and clear the product that’s coming in.” That means Estes Express has to get its hands on the necessary paperwork earlier in the day to prevent any delays for the customer.

MEI removes a window
before a move.

Take cover: insurance challenges
Of course, movers must ensure equipment makes its way from point A to point B in perfect condition, and be ready if something goes wrong.

“Insurance is one of our biggest challenges,” says Ambrose. “For instance, the hospitals are asking that I, being a rigger at a hospital, carry $5 million worth of insurance.”

J.D. Silvers solves his company’s insurance challenges by using an insurance broker to write policies for different jobs. Logical Solution Services deals with insurance in a similar fashion.

“One of the things I’ve learned in dealing with the medical industry is that there was not adequate coverage out there written for it,” says Logical Solution Services’ Cruz. “So we have a policy that has been written specifically for the industry that provides very good protection.”

Estes Express uses the National Motor Freight Classification to determine for how much a piece of equipment should be insured. While a small item might fall into a lower category, equipment like MRIs are much more costly.

Well-choreographed rigging
Riggers work carefully to make sure that expensive insurance does not come in handy.

“From a rigger’s standpoint, you really have to have a soft touch,” says Ambrose. “We deal with foyers in hospitals, with tile floors. And when your audience is doctors, you really have to be on top of your game.”

Before a project, Ambrose’s team will have a “tool box” meeting during which tasks are delegated so the on-site process can run smoothly.

MEI’s Silver adds that once at the facility, a team must also ensure that both objects and people are cleared out before equipment can move through. MRI magnets are particularly sensitive to their surroundings and can have an adverse effect on nearby items, so the area should be free of metal, debris and even credit cards and cellphones.

“The magnet might have enough power that it will rip things off a wall, then it takes 10 guys to pull it off,” Silvers says.

Even the most organized riggers need to be ready to put on their thinking caps when unexpected challenges come up.

“Sometimes we have to remove walls to put in magnets. They’ll put them on the fourth or fifth floor, remove a wall, and bring it out with a crane,” says Silvers.

Smooth operations: tips for buyers and sellers
Common customer complaints revolve around incorrectly timed deliveries, confused installs and arrivals at the wrong address.

“I think the biggest thing with shipping is just the communication, when they deliver something, that they deliver it to the right person, the right location,” says Rick Curry, project manager of installations at GE and an Ambrose customer. “I’ve had things delivered to wrong locations, not by Ambrose, but when working with other companies.”

And since messages can be lost at any point in the process, companies advise continual communication from start to finish.

“My opinion is you can never call enough and double check enough,” says Shadow Transport’s Williams. “I even do that when I have deliveries going to my house, like a fridge. It’s just all about being prepared and communicating with all parties involved.”

Logical Solution Services’ Cruz notes that it’s especially important for buyers to plan in the beginning when dealing with international shipments.

“A phone call when you make the purchase to find out what’s involved in getting it to you is a lot better than once it’s been shipped,” says Cruz. While the international seller may make arrangements to export the purchase, its clearance upon arrival is in the customer’s hands, Cruz says.

Detours from abroad
One potential risk to the freight transport sector is the possibility of a drop-off in demand from China, the United States’ biggest export market, cautions Business Monitor International.

“I think the trade relationships with China will play a big role next year,” says Logical Solution Services’ Cruz.

And like everyone connected to the medical world, those in the freight and rigging sector are waiting to see what impact health care reform will have on the industry. Companies agree, however, that there will always be a demand for professional transport of valuable and fragile medical equipment.

“There’s such a need for it, and the competition between hospitals means they’re always replacing equipment,” says Ambrose. “It just does not stop, and thankfully, we’re right in the middle of it.”



DOTmed Registered DMBN December 2012 Ocean air and truck freight Companies


Names in boldface are Premium Listings.
Domestic
Ginger Whitcher, Landstar System, Inc., FL
Steve Vest, Nationwide Equipment Transportation, Inc., KS
david crail, jds mobile mech, OH
Juan Sandoval, Monterrey Medical Equipment, TX