Steel transportation is one of the most important yet simultaneously one of the most difficult shipments to handle. The world around us is largely built by steel, but how does it get from China to a new construction site in the United States?
RPM is here to tell you everything you need to know:
How Is Steel Usually Shipped?
Steel is usually shipped by boat, train, or truck, depending on where it’s coming from, where it’s going, and what form it’s in.
How the U.S. Steel Industry Works
Even though the U.S. steel industry isn’t as critical as it once was, it’s still a key component of the country’s overall economy. It accounts for more than $520 billion in economic output and nearly two million jobs in 2017.
The steel industry in the United States primarily consists of two different types of steel mills: integrated steel mills and specialty steel mills. Integrated steel mills are the traditional mills that reduce the metallic iron from iron oxide and make it into pig iron and steel. Recently, these traditional mills are slowly being replaced by specialty steel mills or mini-mills.
These specialty steel mills now produce the majority of steel in the country by taking steel scrap and melting it into new steel products. In 2013, there were about 112 specialty mills or mini-mills in the United States. Many of these are in Pennsylvania, like Brackenridge Works and the Pennsylvania Steel Company.
In 2017, there were only about nine integrated steel mills left in the United States. These are primarily located in Indiana, Pennsylvania, Michigan, and Ohio, for example, Gary Works, Mon Valley Works, Great Lakes Works, and Cleveland Works, respectively. This small number of integrated mills is responsible for 31% of all the steel produced in the United States.
The United States’ integrated steel mills and specialty steel mills combine to make the country the world’s third-largest producer of raw steel and the sixth-largest producer of pig iron as of 2014.
Yet, the United States is still a major importer of iron, steel, and related products. For example, in 2014, the United States exported 11 million tons of steel products while importing 39 million tons.
The United States primarily imports steel from Canada, Brazil, South Korea, Mexico, and Russia. In terms of imported metric tons, 16% of U.S. steel imports come from Canada, 14% come from Brazil, 10% come from South Korea, 9% come from Mexico, and 8% come from Russia.
How Is Steel Transported Around the World?
Steel isn’t just imported into and exported out of the United States; it’s transported all over the world. The world’s largest producers of steel are China with over 1 billion metric tons in 2020, the European Union with 139.2 million metric tons, India with just over 100 metric tons, Japan with 83.2 metric tons, the United States with 72.7 metric tons, and Russia with 71.6 metric tons.
In 2018, the top steel exporters were China with 51.4 million metric tons, Russia with 31.5 million metric tons, Japan with 29.8 million metric tons, South Korea with 27.6 million metric tons, and the European Union with 22.6 million metric tons.
Conversely, the top steel importers in 2018 were China with 37.9 million metric tons, the European Union with 32.6 million metric tons, the United States with 19.9 million metric tons, Vietnam with 13.6 million metric tons, and Turkey with 12.5 million metric tons.
So how do you transport steel from the largest exporter (China) to the fifth-largest importer, Turkey? The answer requires a lot of logistical planning and several different modes of transportation, including but not limited to cargo ships, freight rail cars, and semi-trucks.
How Steel Beams Are Transported
If steel itself is challenging to transport, steel beams are a completely different story. Steel beams are so long that they usually can’t be shipped using your standard enclosed dry van. Instead, steel beams may need to be shipped using a flatbed truck that can handle the size and weight of the beams.
No matter how you transport steel beams, you need to ensure they are properly secured to prevent them from moving and shifting during the transportation process. On a flatbed truck, steel beams should be centered on the bed of the truck. The weight should be distributed as evenly as possible.
How Steel Coils Are Shipped
Shipping steel coils presents a different challenge. Steel coils are extremely heavy, and all this weight is also extremely concentrated. As a result, steel coils must be shipped very carefully to prevent straining or otherwise damaging the shipping container or overall vessel.
When calculating the weight of steel coils, a different formula is needed since the weight distribution of steel coils isn’t uniform. From there, steel coils are placed on wooden dunnage to provide a layer of production between the coils and the inner bottom plating.
How To Ship Steel to Construction Sites
If you’re shipping steel, odds are it’s going to a construction site, but getting steel from its origin to an active construction site is no easy task.
Here are some tips to help guide you through the process:
- Start by scheduling the delivery of the steel at a convenient time. Ideally, the construction site would be unoccupied. You should also try to limit the number of workers at the site at the time of delivery for safety reasons.
- Next, make sure that everyone who will be on-site is informed about the delivery and is familiar with their role in the delivery/unloading processes. Anyone that handles the material or is even around it should be well trained in the proper safety protocols.
- Finally, make sure that the steel is unloaded on a flat surface to prevent the vehicle and the load from shifting.
How Are Steel Transportation Costs Determined?
Steel is a notoriously heavy material that weighs 489 pounds per cubic foot. For comparison, wood weighs between 20 to 50 pounds per cubic foot, depending on the type. This means that steel is over 25 times heavier than wood.
Since steel is such a heavy material, it tends to have higher shipping costs since shipping costs are largely based on weight. At the same time, other factors are used to determine shipping costs, like size, shipping method, and shipping time frame.
How To Cost Overweight Shipments of Steel
In many cases, steel will be considered an “overweight” shipment and may be subject to additional charges. To get an accurate price for your steel shipment, contact a specialized transportation provider like RPM. In the meantime, here are some factors that impact shipping costs to give you an idea of what to expect before you receive a customized quote:
Weight
As you’re probably aware, weight is one of the most important factors that determine shipping costs. The heavier an item is, the more expensive it will be to ship. However, transportation companies don’t just consider weight.
They also consider density, which is measured in pounds per cubic foot. To calculate freight density, multiply the length, width, and height of the item together in inches and divide the resulting number by 1,728 to convert it to feet. From there, divide the weight in pounds by the size in cubic feet to get the density.
Size
Size is another important factor that determines shipping costs. The more space an item takes up on a truck, the more expensive it will be to ship. The good news is that you already know how to calculate how much space an item will take up. Simply use the same calculation that you used for cubic feet.
Shipping Distance
When you’re looking for a shipping quote, you need to come prepared with the shipping origin and destination to calculate the shipping distance. Generally speaking, you can expect to pay more for greater shipping distances. For example, it would likely be less expensive for you to ship something 500 miles to another state than it would be to ship something 2,500 miles to the other coast.
Shipping Method
Some shipping methods also cost more than others. Especially when it comes to steel, the most common shipping methods that also happen to be the cheapest methods may not be an option.
For example, dry van shipping is the most common and most affordable type of shipping; however, if you’re shipping oversized items like steel beams, dry van shipping wouldn’t work. Instead, you might need flatbed shipping which would be more expensive.
Shipping Service
Your shipping service also impacts the overall cost of the shipment. For example, you’d pay more for a full truckload (FTL) shipment than you would for a less-than-truckload (LTL) shipment. You’d also pay more for expedited shipping service if you were working with a hard deadline.
Shipping Time Frame
Last but not least, your shipping time frame plays a role in your shipping costs. If you’re shipping during the peak shipping season, which runs from August to October, you can expect to pay more for your shipments due to increased demand. Note that if you’re shipping during the slower seasons, you may be able to get a better price on the same exact shipment.
How RPM Helps With Steel Hauling
Shipping steel safely requires an experienced transportation company that works with qualified drivers. With over 10 years of industry experience and a network of over 40,000 drivers that are fully vetted, monitored, licensed, and insured, RPM meets the mark.
RPM knows how critical it is that your steel shipments arrive at destinations like job sites on time so that you can keep your project moving and on schedule. Thanks to our extensive network of carriers, there’s no shortage of drivers available that are fully trained and qualified to handle your steel shipment.
What To Do Next
To learn more about how RPM ships steel or to get a custom quote for your shipment, reach out to the logistics experts at RPM.
Sources:
Where Does the US Import Steel From? | Investopedia
US Steel Sector Thrives as Mills Move Up Quality Ladder | S&P Global Commodity Insights
Enhanced Global Steel Trade Monitoring: Exports - China | International Trade Administration
