VERTICAL FOCUS: High-Value Shipments

The Secrets to Successful High-Value Deliveries

Getting a high-value delivery from point A to point B means mobilizing the right people, systems, and timing. Here are some tips for success in this high-stakes vertical from Customized Logistics & Delivery Association (CLDA) members.

“Our specialty lies in high-cost, high-touch medication delivery for complex diseases, often directly to patients’ homes. Success hinges on exceptional drivers and robust systems. Drivers need to be meticulous and caring, fully aware of the critical nature of their cargo. Our geofencing technology ensures deliveries only occur at the correct location.”

–Ryan Schwalbach,
CLDA Board Member & President,
NOW Courier

“First, determine that it’s high value, which relies on the customer being able to explain why it should be treated that way. Is a $13-million check high value? No, because it’s only worth the paper that it’s written on. But if you’re delivering a statue to a museum that has a declared value (and is insured as such), that’s high value. It can’t be sentimental value, and it can’t be other value that’s not related to the replacement of this item. When you accept the value of this kind of delivery, make sure you understand how it’s packaged. It should be packaging that’s as close to the original as possible, or that has been professionally done.

“The next thing is the way that it’s handled. If you’re shipping a laptop or a server that has business-critical data on it, pick a vehicle that allows you to ship it in the safest possible way.

“Make sure you do the delivery on your most urgent service. It’s all about protecting the chain of custody. When delivering that very valuable laptop with a declared value of $110,000, on-time and intact, you’d better collect the signature from the customer. That signature declares that the package has been delivered to them intact and in good condition. That completes the chain of custody.”

–Ron Libman,
CLDA Member and US Messenger Chief
Customer and Business Development Officer

8 Tips for Handling High-Value Deliveries

1. Secure packaging. Use quality materials.
2. Insurance. Insure items fully.
3. Tracking. Use GPS tracking.
4. Secure transport. Consider armored vehicles.
5. Proof of delivery. Require ID verification.
6. Communication. Keep all parties informed.
7. Training. Train staff on protocols.
8. Contingency plans. Prepare for emergencies.

–Jessica Marino, CLDA Member and 24/7 Enterprises, Operations Manager

–Ruth C Correa,
CLDA Board Member and Chief Executive Officer,
Cheetah Final Mile

Calculating Cargo Value

Knowing the value of a commercial shipment helps determine shipping costs, insurance premiums, and customs duties. Here are some common ways to measure cargo value:

For commercial shipments, invoice value is the most common method. The value is based on the commercial invoice, which includes the cost of goods, freight charges, insurance, and other expenses. Sometimes, the retail value is used, especially for high-value goods or when the invoice value doesn’t accurately reflect the item’s worth.

Other factors to consider include:

Currency. Declare the shipment’s value in the currency of the destination country.
Customs duties. The declared value affects the amount of customs duties that are owed.
Insurance. The value determines the insurance coverage required.
Shipping costs. The cargo value can influence shipping costs, especially for high-value items.
Under-declaration. Declaring a lower value than the actual value can lead to legal issues and difficulties in case of loss or damage.
Over-declaration. While accurate declaration is important, overvaluing items can result in higher customs duties and insurance premiums.

For more complex cargo valuations, consider consulting with a customs broker or freight forwarder.

Essential Tips for Shipping High-Value Items

Shipping high-value items requires special care and attention to ensure their safe arrival. By following these guidelines, shippers can significantly reduce the risk of damage or loss when transporting high-value items.

1. Use proper packaging.

• Invest in quality materials such as sturdy boxes, bubble wrap, and cushioning to protect the item from shock and vibration. For extremely valuable or fragile items, consider custom-built crates.
• Mark the package as “Fragile” or “High Value” to alert handlers.

2. Get adequate insurance coverage.

• Ensure the shipment is insured for its full value.
• Get familiar with the insurance policy’s terms and conditions, including coverage limits and exclusions.
• For extremely valuable items, explore additional coverage options such as all-risk insurance.

3. Choose the right carrier.

• Choose a reputable carrier with a proven track record of handling high-value items safely.
• Look for carriers that offer specialized services for high-value goods, such as white-glove delivery or secure transport.
• Understand the carrier’s liability limits and any additional coverage options.

4. Implement tracking and security measures.

• Use real-time tracking services to monitor the shipment’s progress.
• Require a signature upon delivery to ensure the package is received by the intended recipient.
• Inquire about the carrier’s security measures, such as GPS tracking and secure facilities.

5. Ensure accurate documentation.

• Provide a detailed description of the item, including its value and contents.
• Keep copies of purchase receipts, appraisals, or other documentation to support the declared value.
• For international shipments, ensure all required customs paperwork is completed correctly.

6. Communicate clearly.

• Provide the carrier with clear and detailed instructions for handling the shipment.
• Include emergency contact information in case issues arise.
• Stay in touch with the carrier throughout the shipping process.

The Personal Touch: OBC Services

With ongoing supply chain disruptions and market challenges, shippers must carefully consider the most effective ways to ship high-value products. On-board courier (OBC), a specialized airfreight service, is one option for safe, secure shipping of certain high-value products.

What sets OBC apart is the hands-on approach. A courier accompanies the shipment from its origin, boards a plane, clears customs, and personally delivers the high-value product to the recipient at final destination.

Constant, personal monitoring reduces the risk of theft, loss, and misrouting, and it offers the possibility of expediting processes, such as customs clearance. Moreover, this personalized service ensures the special attention and care high-value goods require.

While there are many advantages to OBC, there are also some disadvantages including:

• A higher cost due to the personal attention the shipment receives.
• The OBC service does not accommodate large-volume shipments.
• Regulatory restrictions for specific destinations may add complexity to the OBC process.

Several high-value cargo types are well suited to the advantages of OBC services. These include:

• Pharmaceuticals and medical supplies
• High price-tag items such as luxury watches and jewelry, which benefit from the added security and personal handling
• Time-critical parts to keep a manufacturing line up and running
• Valuable art and antiques that require careful handling and protection benefit from OBC personalized attention
• Confidential documents, whether financial records or legal documents, are well served by OBC, which offers secure and timely delivery of these sensitive documents.

–Andrew Rossell,
VP Operations,
ASF Global Logistics