This post is a guide on shipping servers, both domestically and internationally.
For shipping servers domestically, we focus on the importance of secure packing and the best way to handle delivery, comparing the hub-and-spoke model with the type of direct shipping we do at FGX.
For shipping servers internationally, we focus on packing and shipping servers, but also on international customs compliance – so your servers can get into their destination country and not get held up or rejected at customs. This key component in international shipping is often overlooked by companies trying to get servers into a new country, which can lead to shipping delays, fines/penalties, higher costs, and entry refusal by customs.
At FGX, we provide server shipping solutions, both domestically and internationally. We ship to over 170+ countries, and in the past 2 years have had an untarnished record of successful shipments, even in notoriously difficult and tightly regulated countries like Brazil and China. If you need to ship servers or any other goods to support your IT infrastructure, contact us for a consultation. With every prospective client, we evaluate your possible shipping options, and give you an honest assessment on what we think are the best shipping options for your shipment.
Shipping Servers Domestically
When you’re shipping servers domestically you’re most likely shipping to an office or data center, where either someone is waiting to set up and use the servers or you need to schedule an engineer or remote hands resource to visit the office when the servers arrive. You may be shipping new servers or moving used servers from one location to another.
Either way, the key aspects to consider when shipping servers domestically are:
- Proper packing: Proper and secure packing helps guarantee that your servers will get to where they’re going without getting damaged along the way.
- What type of delivery service to use: Should you ship servers with hub-and-spoke delivery services like DHL, UPS, and FedEx, or send your servers via a more direct method of transportation?
By getting both of these aspects right, your servers are more likely to arrive at their destination functional and on time.
Properly Packing Servers
How you pack servers for shipment will depend on whether you’re shipping servers that came from the manufacturer or you’re shipping used / refurbished servers. At FGX, we help clients ship both.
Generally speaking, servers from the original equipment manufacturer (OEM) are securely packaged in cardboard boxes with packing materials like styrofoam cushioning. Below is an example of a well-packed server straight from the manufacturer. Servers are generally thin, but heavy. For example, a Dell 2U server can be just under 4 inches thick, but weigh over 70 lbs. This means the packaging is going to be significantly thicker than the server, to allow for proper support and cushioning.
Unlike other shipping partners, at FGX we inspect each shipment to make sure the servers had been properly packed by the manufacturer. This helps guarantee that your servers will arrive at their final destination in good condition.
Once the packing has been confirmed on our end, the next step for shipping new servers is figuring out if the servers ought to be put on a pallet. This is more of a concern if you’re shipping more than a few servers.
We help you answer this question by doing a cost benefit analysis on the server itself – i.e., does the cost of the server (and the potential cost of dealing with delays if the server is damaged in transit) warrant the extra cost of palletizing it? Sometimes the cost benefit analysis says yes, in which case we will palletize even a single server. The photo below is an example of two servers being palletized.
One of the benefits of using a pallet like this means the team handling fulfillment has to use a pallet jack to move the servers, instead of picking up the box and throwing the goods.
As mentioned above, servers are generally thin but can be quite heavy. A 1U server can weigh just under 50lbs, and a 4U server will weigh over 100 lbs. This puts your shipment at a unique weight where it’s possible a delivery driver or package handler may just try to pick up and toss the box (assuming it won’t be that heavy). That’s not a best practice by any means. By putting your valuable equipment on a pallet, it’s as close to a guarantee as you can get to ensure that it’ll be transported properly, not thrown or tossed.
Your servers are also less likely to be pushed up against other packages, as the pallet provides a degree of separation.
A quick note: One of the drawbacks of using companies like FedEx and UPS to ship servers is that they don’t help you figure out the best way to ship. Instead, they simply take your package – however it’s been packaged by you or the seller – and ship it for you.
But what if you’re not shipping brand new servers from the OEM?
When you’re shipping refurbished or used servers, there’s more leg work on your end, as they need to be sorted and packaged.
Often businesses come to FGX because they need to move servers and other IT equipment out of one office or data center and into another, and they either are not sure of how to do it themselves or they don’t have the time.
Here’s an example of a customer who needed us to ship servers and other IT equipment from one office to another.
With this type of order, we go through each piece of merchandise, create a detailed manifest, and figure out the best way to pack and ship the equipment.
For used servers, we generally recommend custom crating. We do on-site professional crating at an FGX or partner warehouse. First, we take the servers and stack them securely on a pallet with a styrofoam stabilizing foundation. Then we wrap the servers in an anti-static bubble wrap protects electronic components and devices from static discharge during transit.
Then we build a crate around the pallet.
The end result looks like this:
Now your servers can be safely transported.
How to Ship Your Servers: Direct Freight vs. Hub and Spoke Model
When you’re shipping servers you generally have two options for transportation: direct freight or using a hub-and-spoke model, like DHL, UPS, and FedEx.
The hub-and-spoke model is often what most businesses think of when they’re shipping servers. Companies like FedEx and DHL handle all their other shipments, so why not their servers and other IT equipment?
But there are drawbacks to using the hub and spoke model to move your servers from point A to point B, including:
- Non-dedicated transportation vehicles: When you ship servers via hub-and-spoke, they’re being carried along with other goods. These other goods can be anything from pallets of food and liquid to medical equipment to anything else that needs to get shipped. This can be a non-issue, but it can also lead to damage or mishandling. For example, something heavier than servers could be placed on top of them, leading to an increased risk of damage.
- Multiple points of contact: When your server is part of a larger and more complex shipping “ecosystem”, which is what the hub-and-spoke model is, there’s going to be more hands involved in moving it, re-arranging, and getting the shipment to its final destination.
A delivery driver may take your server off the truck to make room for more goods, then put it back on the truck. Your server may be taken off one truck, stored in a warehouse for a few days, before it’s loaded up another truck. Multiple points of contact simply increases the risk that your goods will get lost or damaged.
- No thorough pre-shipment inspection: Hub-and-spoke delivery companies are not going to notice if your package has been damaged when they pick it up. And if it has been damaged, they’re not going to work with you to get it replaced. Their job is simply to get the item, damaged or not, to its final destination.
Here’s an example of what that could look like: You buy a pallet of servers from an OEM or VAR, and after storing it in a warehouse temporarily, you get it shipped via FedEx to its final destination. But somewhere from it being stored at the warehouse to FedEx getting a hold of it, one of the boxes on the pallet was crushed and the server within it was dented. You simply have to wait to get that server before you can start any sort of returns process with the OEM. Keep in mind that companies like FedEx have very difficult and tedious insurance claims processes, so you’re likely going to be stuck working with the OEM to get any sort of refund or replacement.
Compare that with how a shipment is handled at FGX. FGX receives your servers from the OEM (or FGX goes to where your servers are if you’re shipping used/refurbished servers). At FGX, we’re IT specialists who only pack and ship IT equipment. This means we’re familiar with the equipment coming through our warehouse and will carefully inspect each shipment to make sure the right items are packed carefully. If a package does come to us from the hardware vendor as damaged, we work with you and the vendor to get a replacement sent to us ASAP. This means you don’t need to worry about receiving the wrong servers or damaged servers. Plus, we offer much more comprehensive insurance on the items we ship, ensuring that if worst comes to worst, you’re not dealing with claim disputes.
For some shipments, these drawbacks mentioned above are not significant enough to stop you from shipping servers via the hub-and-spoke model. It simply depends on what you’re shipping, where you’re shipping from, and where you’re shipping to. These are decisions we can help you make at FGX, by looking at factors such as a) the cost of servers you’re shipping and b) the potential operation cost loss if your servers do not arrive un-damaged or on time.
Shipping Servers Internationally
When you’re shipping servers internationally, the best method is buying the servers locally (in the country you’re in) and shipping them to the country you need them in.
But while this is the best method, it’s often the least used, due to the complications with international customs clearance. Shipping servers (and other high value IT equipment like switches and routers) is non-trivial. IT equipment is subject to strict regulations and laws. These laws change depending on what exactly the type of servers that you’re shipping (such as whether or not your servers are loaded with software that also needs to be declared), where you’re shipping from, and where you’re shipping to.
Unlike domestic shipping, there’s a lot of things to consider when shipping internationally, and a lot of leg work to get your shipment through customs, such as:
- Knowing if your servers are compliant: Just because you can buy a server in your country, doesn’t mean it can get shipped and used in your destination country. It’s the shipper’s responsibility to make sure that the goods being shipped are eligible to be used in the destination country.
- Choosing who will act as your Importer of Record (IOR). The Importer of Record is the business entity listed on import documentation for customs clearance purposes. If you have an eligible entity in the destination country, it can act as the Importer of Record, or you can hire a third-party Importer of Record provider. But choosing who acts as the IOR for your shipment is critical, as customs officials evaluate the IOR as one of the most important pieces of information. Customers are looking to see who is responsible for the imported goods, if they’re negligible to import, their import history, and other criteria.
Often, businesses come to FGX because they don’t have a business entity in the end destination that can / is willing to act as the Importer of Record for their shipment. At FGX, we can either act as your IOR to get your shipment into its target country or can help you establish a business entity that can act as your IOR (the preferred method, as it gives our clients more control over their shipments and business decisions) – we do this while still handling all aspects of what an IOR is responsible for.
- Handling duties & taxes: You need to make sure your bill of materials is classified into HS codes. These codes are ways to classify your servers. Each code has applicable duties and taxes based on where you’re looking to ship. The duties and taxes may be subject to additional stipulations. For example, local entities may value your equipment based on MSRP and not necessarily the value at which you purchased the hardware. You don’t want any margin of error when assigning HS codes to your servers – at FGX, we handle this for you, so you know you’re paying only the duties and taxes that are essential.
- Understanding the language of international shipping: Shipping internationally has its own jargon and commercial terms, called International Commercial Terms or Incoterms for short. These can be challenging to navigate even for businesses with a dedicated international shipping and logistics team.
- Packing for server and customs compliance: Different countries have different requirements for packaging your servers, down to which materials you can use as part of your packing and crating. This means even if your paperwork is filled out correctly, and even if your servers are compliant, your shipment can still get stuck in customs based on how it’s packed or what materials were used.
Plus, as we covered above, you want to make sure your servers are securely packed, especially for international travel which is often (though not always) covering more distances than domestic travel.
- Providing insurance certificates for your shipment: Depending on the servers you’re shipping, you might be required to show customs that you have adequate insurance for what you’re shipping.
- How you’ll handle any hold-up in customs: Finally, if any problems or questions arise during the customs clearance process, you need to be able to communicate with customs and provide any information or documentation that they’re requesting.
By partnering with FGX, we will handle the above and more to get your servers shipped to their target destination.
But more than that, we’re an expert consultant for our clients, taking a holistic approach to their international shipping needs. Specifically, unlike typical freight forwarders or delivery companies, we don’t just view our role as a delivery truck getting your servers from point A to point B.
Instead, we look at the items you’re shipping, where you’re shipping from, where you’re shipping to, and what you’re likely to ship in the future. This helps us create a custom built, cost effective solution for your IT infrastructure.
There are several benefits to shipping servers internationally with FGX, including:
- Taking advantage of the “buy local, ship global” methodology.
- Knowing beforehand whether or not the servers you’re looking to ship are eligible for in-market use, instead of waiting till the 11th hour.
- Having cost-optimized shipping options available to you based on your project’s details, company’s situation, and more.
- Maximizing the chances of customs clearance success.
- Having access to FGX’s consulting pre and post-shipping.
- Ensuring that in the event of an audit, you have our expert support (subject to limitations).
- Having low variance and up-to-date timelines every step of the way.
- Enjoying a fully managed and expert shipping experience.
- Being able to reclaim goods and services tax (GST) value-added tax (VATs) on your shipments. Often businesses will partner with an IOR provider or general freight forwarder to get their servers to their destination, not realizing that they’re losing out on being able to reclaim the VAT on their shipment.
When you ship servers with FGX, we handle:
- Comprehensive manifesting of products to ensure compliance
- Secure packing of your assets
- Product valuation review
- International trade codes
- Paying any fees/import duties/taxes on your behalf
- Obtaining permits and licenses, such as HKTID permits in Hong Kong or wireless permits in India
Plus, all of our international customers get:
- Direct air freight shipments: The large majority of FGX’s shipments are transported via direct air freight, as many issues arise when using the hub-and-spoke model, including damaged and lost goods.
- Dedicated last-mile delivery: You’re not just one stop of many, instead our dedicated last-mile delivery team handles taking the servers to their final destination. This helps with the care and handling of your package, and also greatly reduces any chances of delayed deliveries.
- Comprehensive insurance: If something goes wrong with your shipment, you can get the full insurable value of your servers back.
- Export and import audit support. In the event that there’s an export or import audit for shipments and filings done by FGX,our team will support you in providing all of the documentation needed to meet the audit criteria.
To learn more about the best way to ship servers, CPUs, hard drives, and anything else you need to support your IT infrastructure, contact us at FGX.
