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Full Container (FCL) Vendor Loading Requirements Page 1 of 21 Doc. No.: WP02-00013 Rev. A Date: Dec. 10th, 2007

EXCLUSIVE AND CONFIDENTIAL PROPERTY OF COST PLUS WORLD MARKET.©. All rights reserved, including all applicable copyright, design and patent rights. Any unauthorized reproduction, adaptation,

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Full Container (FCL) Vendor Loading Requirements

A Sean Ho Bob Tway 12/10/07 Spring 08

Revision Originator Approver Release Date

Effective




TABLE OF CONTENTS 1. Purpose

2. Application 3. Packaging Development and Load Planning

4. Packaging Development

4.1 Corrugated Material Strength

4.2 Carton Styles

4.3 Internal Packing

5. Loading and Landed Cost (LC)

5.1 Initial Quote

5.2 Load Revision During Product Development

5.3 Final Loading

5.4 Load Adjustment

6. Loading Plan Submission Format

7. Loading Requirements 7.1 Container Size / Load Weight Limits

7.2 Load Configuration

7.3 Carton Orientation

7.4 Load Stability

7.5 Load Uniformity

8. Advance Loading Techniques 9. Container Inspection and Moisture Control

9.1 Inspection

9.2 Container Security

10. Moisture Control

11. Loading of Mixed PO/SKU and Multi Carton SKUs 11.1 Loading of Mixed PO/SKU

11.2 Loading of Multi Carton SKUs

12. Load Bracing and Bracing Devices

12.1 Blocking and Bracing

12.2 Netting

13. Solid Wood Packing Material (CWPM) Requirements

14. Container Fumigation Requirements 15. Examples of Unacceptable Loading

16. C-TPAT 7 Points Container Seal Inspection 17. References




1. PURPOSE

This specification will explain the packaging development process as it relates to sea container and trailer loading efficiency, including basic container loading and bracing guidance. The emphasis is placed on product protection through packaging design, correct loading practices and the subsequent effect on overall shipping cost.

2. APPLICATION This procedure applies to all CPWM furniture products, but can be applied to all other categories as well.

3. PACKAGING DEVELOPMENT AND LOAD PLANNING It is important that the vendor should follow the packaging development process as outlined below. This is critical to achieve successful protection and to stay within the cost boundaries with respect to loading and shipping cost.

Figure 1: Load planning events in the product maturity process.

Vendors should verify load planning as often as necessary to provide the best protection and cubic efficiency for the product




4. PACKAGING DEVELOPMENT

Selecting the right carton style and corrugated material strength can save on labor cost and provide more flexibility in loading processes. Vendors should consider the following when selecting a carton style for their product:

• Product protection (considering the size and weight of item).

• Packaging cost.

• Labor Cost (ease of packing).

• Load configuration.

• Ease of unpacking for inspection and positive customer experience.

4.1 Corrugated material strength: Strong corrugated material is the key defense for products against compression stress experienced in the loading, transporting and off-loading. For more information on carton material strength requirements, reference the CPWM Vendor Manual. See the Reference section at bottom of this document for link to our website.

4.2 Carton style: The following table outlines common carton styles, typical uses and loading orientation flexibility.

Carton Style Acronym/Name and

Int’l Fiberboard Case Code

Carton Style

Uses

Loading orientation

RSC (0201)

Regular Slotted Container

• Most common box style • Little manufacturing waste • Cannot be used for KD

(Knocked down) or SKD (semi knocked down) items.

• ONLY on bottom (carton opening facing up)

• Corrugation direction must be vertical. Except top layer of the load, never load RSC carton style on its side with corrugation direction horizontal.

FOL (0203)

Full Overlap Slotted Container

• Resistant to rough handling.

• Stacked on its bottom panel, the overlapping flaps provide added cushioning.

• Stacked on its side, the extra thickness provides stacking strength

• Flexible on bottom or sides. When loaded on its side, corrugation direction must be vertical.




Carton Style

Acronym/Name and Int’l Fiberboard Case

Code

Carton Style

Uses

Loading orientation

OSC (0202)

Overlap Slotted Container AKA Partial Overlap (POL)

• Used when the length of the box is considerably greater than the width, resulting in a long gap between the inner flaps. The sealed overlap helps to keep the outer flaps from pulling apart. Unlike RSC, the cut pads are not needed with this carton style.

• Limited on bottom only. See RSC carton style above for more details.

FPF (0410) Five Panel Folder

• Used for tall/long or heavy products with small widths/depths that would be difficult to lower into the carton. The item is placed on the 2nd long panel and the carton is wrapped around it with the 5th panel over-lapping the 1st panel. Examples: curtain rods, umbrellas, bed side rails / slats

• Bottom and long panel. When loading, be sure corrugation direction is vertical.

FTD (0301)

Full Telescope Design Style Container

• Used for products that have short depths

• Ease of packing and unpacking are desired, Examples: headboards, large panel bench and dining tables.

• Strapping is usually required.

• Bottom and any long panel. This is preferred since this decrease top loading pressure in a given container. Be sure the corrugation direction is vertical

4.3 Internal Packing: Majority of CPWM furniture is shipped KD (unassembled), which makes the cartons dense and heavy. To protect from compression stress, internal packing must comply with our KD/SKD Product Packaging Requirements. See the Reference section at bottom of this document for link to our website.

5. LOADING AND LANDED COST (LC) Shipping is a major cost component of the product’s landed cost (LC). In order to achieve the best cube efficiency, carton dimensions must be accurate and loading must be analyzed in 3 stages of the product development process.

5.1 Stage 1: Initial Quoting: Carton dimensions, in compliance with our packaging requirements, should be estimated as accurately as possible. These dimensions determine container loading quantities. The maximum variation on estimates should be approximately 5%.




5.2 Stage 2: Load Revisions during Product Development. Whenever the product and/or packaging are revised, the container load MUST be re-calculated. Adjustments to the packaging, and at times the product, can be made to arrive at a carton size that maximizes cubic efficiency.

Example: Reducing a trunk cube with physical product dimensions from 30” x 30” wide to 28.5” x 30” can result in smaller carton dimensions that allow loading three rows instead of three across the container width.

Figure 2: Slight product revisions can significantly increase load quantity

5.3 Stage 3: Final Load Planning: After passing transit testing, the final container load is calculated and confirmed. A step-by-step loading plan must be submitted to CPWM Engineering and the appropriate buyers for approval before loading takes place. See Load Submission Format in the following section for more details.

5.4 Load Adjustment: Load quantities can change during product development, or after the

first shipment. Any changes must be reported immediately to CPWM Engineering and appropriate buyers along with reasoning for the load quantity change and the revised Estimated Landed Cost (ELC).

**Important note: Tolerances in carton dimensions, tie down obstructions (See Figure 3 and 4) or container construction features (see Figure 5) must be taken into account to avoid load quantity revisions.

Figure 3: Example of tie down design feature which can interfere with internal load

Load plan of a trunk cube with physical dims: 30” x 30” x 30”

Load plan of a trunk cube with physical dims: 30” x 28.5” x 30”




Figure 4: Reconfigure top load to accommodate the tie-down feature.

Figure 5: Avoid loading next to the doors’ rim. The container door opening can obstruct loading near the container ceiling.

6. LOAD PLAN SUBMISSION FORMAT Load plans should be clear and provide step-by-step loading details. All submitted load plans must have the following criteria:

1. Carton dimensions in length (L), width (W) and height (H) order in inches (in) and centimeters (cm).

2. Carton style (RSC, FPF, FTD…) See carton style matrix for description.

3. Carton gross weight in pound (lbs) and kilograms (KG).

4. Container type (20GP, 40GP, 40HQ, 45HQ…) and inside container dimensions used.

5. Total load quantity.

6. Loading plan with isometric view of the entire load.

7. Step by step placement of loading sequence.

8. Cartons orientation.

9. Titled load plan file as follows: (SKU if applicable).

“SKU, Product Name, Vendor/Factory Name, Container Type, Quantity”

Example: 234567, Tully End Table, Fine Furniture Inc., 40HQ, Qty 423.

Door jam can also interfere

with a few cartons loading at tail end of container.

Top cartons are repositioned to accommodate tie down feature at top corners of container.




7. LOADING REQUIREMENTS 7.1 Container size and gross weight limits: Although most of the container

manufactures follow standardized container dimensions, some containers’ internal dimensions may vary slightly among companies. To ensure all vendors are working with a consistent set of dimensions, the following set of container internal dimensions should be used to create the loading plans:

`

*NOTE: 45’ containers have a lower payload limit than 40’ containers (larger and longer container, heavier tare weight, but same number of axles = lower payload limit). To protect the US roads from degrading prematurely, DOT (Department of Transportation) will impose fines on trucks with container payload exceeding the specified limit.

7.2 Loading Configuration: Loads should be developed with respect to the type of carton

style and the corrugation direction. The corrugation direction of the carton should be vertical. To minimize package and/or product damage, the following should be observed:

• Reduce the top load pressure (compression) - Whenever possible; minimize the number of layers in any given load. If the carton style and dimensions allow, flat cartons with thickness of more than 4”, should be loaded on long edge rather than flat (flat cartons allow higher stack = more top load weight on bottom cartons). See Figure 6.

• Load stability – Flat cartons, if loaded on edge, may be unstable during loading, in-transit and off loading. Therefore, flat cartons should be loaded with its long edge along the container length to prevent front-to-back cascading during transport.

Figure 6: Minimizing number of layers reduces the top load pressure on the bottom cartons

Container Type Length Width Height Max Gross Payload

1193 cm 234 cm 237 cm 19,958 kg 40GP (Dry) 469.70” 90.50” 93.30” 43,907 lbs 1193 cm 234 cm 268 cm 19,958 kg 40HQ (High Cube) 467.7” 90.50” 105.5” 43,907 lbs 1358 cm 234 cm 268 cm 18,597 kg * 45HQ (High Cube) 534.60” 90.50” 105.5” 40,913 lbs *

Preferred Not Preferred




7.3 Carton Orientation: All layers should be loaded with the corrugation direction vertical and the UP-Arrow marking pointing upward. However, large items such as furniture create voids, which do not allow another layer or column of cartons to load in the same manner. In this case, loading in a different orientation to maximize the overhead or side voids in the container is permitted. Two or more layers may be permitted, depending on the product (lightweight), carton style (FTC) and carton dimensions (medium to small). Examples of this exception may be items such as headboard, dining table cartons etc.

Figure 7: Maximize the space overhead by re-orienting top layer(s)

7.4 Load stability Loads will shift side to side during ocean voyage and front to back during ground transport. Ensuring load stability will help protect the products as well as ensure worker safety.

Figure 8: Motions of transportation— Side to side wave motion of sea going vessel, horizontal (front to back) and vertical motion due to stop/go and poor road condition on ground transport.




Side gaps (along the container length) must be blocked and braced to prevent damage and the back end of loads must be tied down. Careful load configuration planning can help minimize the domino-effect as doors are opened to receive the goods.

Figure 9: Block and brace side gaps to prevent load shifting

7.5 Uniformity: Ideally, all cartons should be stacked vertically with no overhang. This maximizes the utilization of the carton’s stacking strength.

Load Plan Examples:

Figure 10: Typical loading plan for product packed in RSC carton style

Gaps larger than 2” (5 cm) must be blocked / braced to prevent load shifting side to side.

Loading in this configuration must be avoided to prevent domino effect when doors are opened.

Lower layers uniform and stacked vertically. Top layer loaded flat.

Uniform loading of a typical fully assembled dining chair




Figure 11: Load Plans with FTD (Full Telescope Design) style

Figure 12: Load with long edge orientation not standing on end

8. ADVANCE LOADING PLANNING TECHNIQUES To maximize the cube, cartons may be loaded in alternating patterns to stabilize and avoid domino effects. See the below loading options in Figure 13.

Upper Layers load flat to maximize overhead space ONLY if the upper layer cannot be oriented with UP Arrow vertical

FTD style carton

Recommended Not recommended

Option 1: This load shows large side gap along the container length which must be blocked

Option 2: This load is better in space utilization (no side gap) but has the potential of a domino effect. This should be avoided.




Figure 13: Re-configuring loading patterns to minimize domino effects

9. CONTAINER INSPECTIONS In preparation for loading a container, vendor must inspect to be sure the container delivered is in good working condition. It is the vendor’s responsibility to ensure container is in good working condition prior to loading. If the container is damaged, it should be documented, refused and a replacement container should be requested.

9.1 General Inspection - Below are some important areas to be checked:

• Clean

• No holes in ceiling, floors or walls.

• Door seals are functional. • No irregularity in size—verify inside dimensions for hidden compartments or false

walls.

• All vents are closed and free of air flow or odors.

• No bug infestations, mold growth or water marks.

• Moisture content on container flooring is below 20%. Below are recommended meters:

o http://www.wwwagner.com/l601_3.php, Wagner pin-less Quick Scanning Moisture Meter - Model L601-3

o http://www.delmhorst.com/products_indust.html, Delmhorst Two Pins Moisture Meter, model RDM3

Figure 14: Wagner and Delmhorst Moisture Meters

Option 3: Alternate portions of the load orientation to minimize domino effect while maximizing cube

Similar loading technique is observed here




All measuring devices should be properly calibrated per manufacturer’s instructions. Multiple readings should be taken throughout the container flooring as shown in the below diagrams. Focus on floor areas where there are signs of water stains.

Figure 15: Top view showing general locations in the container for moisture readings

Any readings exceeding 20%, container should be refused. Readings should be documented on vendor shipping documents.

9.2 Container Security: Be sure that containers that arrive at your facility are empty!

Before proceeding to load a container, a seven point inspection process is recommended as follows:

o Undercarriage (before entering facility). o Inside/outside doors. o Right side. o Front wall. o Left side. o Floor. o Ceiling/Roof9.2.1 Undercarriage: Should be inspected before container

enters the facility.

Figure 16: Inspecting container undercarriage

9.2.2 Inspection Specifics Outside doors: Often, many of the following are signs of hidden contraband.

o Ensure locking mechanisms are secure and reliable.

o Be sure doors are in good condition and working order.

o Check for plates and repairs.

o Check for different color bonding material.

o Check if removable bolts have been added – indicates tampered doors.

1 2 3

Back End

Check to see that support beams are visible. If support beams are NOT visible, it could indicate possible hidden contraband.

Usage of mirrors to inspect the undercarriage of containers is also recommended.




Figure 17: An example of a removable bolt. .

Inside doors: Inside doors should have cavities. o If the inside door appears solid or that a plate has been placed on the inside

of the door, this indicates tampering and possible hidden contraband.

Right/Left Sides: Both sides – inside and outside – should appear to be of solid construction and in good condition.

o Check for excessive rust, holes, or tears in the sides of the container.

o Check for unusual repairs to structural beams: Repairs to the walls on the inside of the container must be visible on the outside.

o Use a tool to tap walls – you should hear a hollow sound.

Front wall: Front wall should be in good condition.

o Inspect for excessive rust, holes, or tears in the front wall of the container. Use a range finder or tape measure to check for false walls.

o Blocks and vents should be visible.

o Use tool to tap front wall – you should hear a hollow sound.

o Check for unusual repairs to front wall.

This door has hidden filled

cavities.

Figure 18: Which door has hidden compartment?

This is what a normal door

should look like (deep ridges)




Figure 19a: Measure internal dimension to detect false wall using a range finder.

Figure 19b: A false wall with hidden contraband.

Figure 20: Example of normal block and vent

Ceiling/Roof: The ceiling should be a specific height from the floor. o Check for excessive rust, holes, or tears. o Check for unusual height. o Check for unusual repairs. Repairs made to the ceiling inside the container

must be visible on the outside! o Use tool to tap the ceiling – you should hear a hollow sound. o Be sure the blocks visible (see above). Missing or abnormal blocks or vent

holes indicate tampering with the container!




Floor: The floor should be a specific height from the ceiling, flat, and in good condition. o Inspect for holes, tears, or excessive damage. o Be sure floor is flat. Step into the container and test by walking around.

Different floor heights indicate possible hidden contraband. o Check for unusual repairs.

Figure 21: Example of false floors with hidden contraband

10 MOISTURE CONTROL Especially in Asia during rainy seasons (June to September for South Asia and November to February for South East Asia), furniture products and decorative accessories must be protected from excessive outside moisture. Desiccant or moisture collection devices are required to minimize trapped water vapor condensation during loading, especially in Full Container Loads (FCL) and throughout the shipping journey to the US.

10.1 Application –There are two approved devices:

• SuperDry Pack (Dry Pole 1 kg) available from www.superdryers.com

• Absorbag available from www.absortech.com

Figure 22: Recommended Moisture Collection Devices

Container Type

Qty Dry Pole required per

container

Qty Absorbag required per

container

45HC 10 10 40HC 8 8 40GP 8 8

Unusual repair – steel plates welded into floor, revealing hidden contraband.

Uneven floor height/Unusual repair – hidden compartment used for hiding contraband.




10.2 Installation - Follow manufacturer’s installation instructions to install devices inside the container and activate as required. Do not cover the absorption part of the device with product as that may prevent it from functioning properly. If necessary, block and brace around the devices to prevent load shifting onto the devices.

11. LOADING OF MIXED PO/SKU AND MULTI CARTONS SKU: Below are general guidelines for mixed container loads. Be sure to load with Up Arrow pointing upward and the corrugation direction vertical.

11.1 MIXED POs LOADING

11.1.1 When loading by PO, place items of the same PO together in the same area of the container/trailer. Stack like-items.

11.1.2 Load by SKU, place items of the same SKU in the same area of the container/trailer.

11.1.3 Maintain vertical column stacking, where possible.

11.2 MULTI CARTON SKU LOADING

11.2.1 Load carton 1 of 2 and 2 of 2 side-by-side so that receiving/staging time is optimized.

11.2.2 Load heavier items on the bottom of the container/trailer, lighter items on the top layers.

Figure 23a: Examples of multi-carton SKU and Mixed Loads

Figure 23b: Mixed Load Plans for Multi-carton SKU




12. BRACING OF LOADS AND BRACING DEVICES 12.1 Blocking and bracing: All loads with greater than 2” (5 cm) gaps on any vertical

side of the container must be blocked or braced. This should be done with wood or plywood. Never brace the load against the container doors.

Figure 24a: Blocking and Bracing using Lumber (Wood)

12.2 Netting: Whenever possible, tie down end loads near door with rope or netting to secure load from toppling out when door is opened.

Figure 24b: Netting use for load tie-down.

13. SOLID WOOD PACKING MATERIAL (SWPM) REQUIREMENTS In accordance to USDA regulation, all solid wood products used for packaging, pallets, bracing in containers, dunnage etc. imported into the United States, MUST comply with the requirements outlined by the U.S. Department of Agriculture; Animal and Plant Health Inspection Service, CFR 7, Part 319. The requirements are fulfilled by the use of non-solid or solid wood that meets the Heat Treatment or Fumigation standard and a certification stamp that must be on the packaging, pallet or dunnage material. Reference the CPWM Vendor Manual, Chapter 3, Import Logistic for further details.

14. CONTAINER FUMIGATION REQUIREMENTS If requested by CPWM, once the products are loaded, the container must be fumigated, sealed and left for 12 hours (at vendor’s premises in an isolated area) before moved to the port. The Pest Control Company must provide a Certificate of Fumigation and distribute three copies—one to the vendor, one with the container and one to the agent or vendor to forward to CPWM.

Plywood blocking/bracing of product on side void space.




15. EXAMPLES OF UNACCEPTABLE LOADING The following are examples of unacceptable load plans, which all vendors MUST avoid.

Figure 25: Unacceptable Loads

Figure 26: Load without proper restraints

Figure 27: Loading RSC cartons on side. UP Arrow and corrugation direction are disregarded.

Large gaps are un-restrained.

Kraft paper is not strong enough to block or brace

Gaps not blocked/braced allow product to shift. The top flaps bulge out due to tape seal failure

RSC cartons loaded on its side. Top pressure on carton side causes carton flaps to bulge.




16. C-TPAT STANDARD 7-POINT CONTAINER’S SEAL INSPECTION

As part of the US Custom’s new security initiative “C-TPAT” (Custom Trade Partnership Against Terrorism). CPWM follows the Container Seal Integrity Procedure. This procedure ensures implementation of a secure container seal.

16.1 Seal Integrity: Seal tampering has become the most popular method used to access ocean containers. Written procedures must explain how seals are to be controlled and affixed to loaded containers - to include procedures for recognizing and reporting compromised seals and/or containers to the appropriate authority.

16.2 A high security seal must be affixed to all loaded containers bound for the U.S. All

seals must meet or exceed the current PAS ISO 17712 standards for high security seals. Check with the company that supplies your container seals to ensure that their seals meet or exceed the current PAS ISO 17712 standards!

Figure 22: Examples of high security container seals.

Figure 23: Example of unacceptable low security container seal.

16.3 Restrict access to container seals. Container seals should be stored in a secure

location with limited access. Only specific, designated employees should have access to seals. Non-employees should never handle container seals. After container has been loaded and closed, the designated employee should assign a seal for the container and supervise the affixing of the seal to the container. Seals must never be assigned or affixed before the container is loaded and closed. Seals should be affixed to the right door of the container on the hasp that has the welded rivet.

Figure 24: Ensure doors and seal are properly functioning and installed.

NCET Training United States Customs Service Slide #144




16.4 Ensure the seal is affixed securely:

• View seal and container locking mechanisms. • Verify seal number for accuracy. • Pull on the seal to ensure it is affixed properly. • Twist and turn seal to ensure it does not unscrew.

16.5 A record must be kept of:

• Seal number. • Container number. • Commodity loaded. • Initials or name of employee who affixed the seal.

16.6 Ensure that seal number is recorded by:

• The trucker before he leaves the cargo area. • The carrier/consolidator transporting the cargo to the United States. • The port terminal.

16.7 Records must be kept on file in case the consignee discovers that the seal has been

tampered with. There must be written procedures for detecting and reporting compromised seals to the appropriate foreign authority, carrier and when possible, US Customs officials. Any attack on the security of the container should be reported to the appropriate foreign authorities.

17. REFERENCE AND APPLICABLE DOCUMENTS 17.1 CPWM Vendor Manual – Online at:

http://www.worldmarket.com/corp/vend_relations.jsp User name: cp03; Password: cp03

17.2 Super Dry Absorbers and Dehumidifiers - http://www.superdryers.com/index2.htm

17.3 Absorbag – http://www.absortech.com

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Full Container (FCL) Vendor Loading Requirements · Full Container (FCL) Vendor Loading Requirements ... EXCLUSIVE AND CONFIDENTIAL PROPERTY OF ... Selecting the right carton style