LNME
EXPERT INSIGHT
OUT-OF-GAUGE
CARGO
The team of Ceva Logistics, one of the exceptional players for out-of-gauge cargo, pens down the importance of early planning and detailed logistics engineering
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his article defines complex and out-of-gauge (OOG) cargo as items with estimated measures of more than 70 tons, five meters in height, four meters in width, and 15 meters in length per single unit. Typical OOG cargo turbines, transformers, windmills, platforms, generators, big cranes, and so forth. OOG cargo frequently possesses the majority, if not all, 16 | LOGISTICS NEWS ME | NOVEMBER 2022
of the following characteristics: It has a high economic value and a long lead time, and it is prone to sudden movement, particularly during shipment and handling. As a result, there are no margins for error when it comes to on-time and damage-free freight delivery to the project site. Assume that OOG cargo is destroyed during transit or handling or is not delivered to the site on time.
In such an instance, the principal contractor’s contractual penalties considerably outweigh any savings realized by pressing logistics suppliers to take unexpected risks that may result in little cost savings. It isn’t worth the risk. Even if the insurance covers losses up to the cargo invoice value, the insurance provider is unlikely to reimburse the contractor for delay responsibility and reputational damage completely. For example, manufacturing a new wind turbine can take around six months, as this type of OOG cargo cannot simply be taken from the manufacturer’s existing stock. Furthermore, efficient logistics for out-of-gauge (OOG) freight necessitates rigorous research early in the project cycle. This analysis should be included in the project feasibility assessment. The following text includes case studies altered to highlight best industry practices. WWW.CBNME.COM