Category: <span>China Freight News</span>

If you’re wondering what breakbulk is, well this guide provides all information you need about this freight term.

From the basic definition, facts you should know to preparations when handling bulk cargo – you will definitely find all information you have been looking for right here.

Let’s dive fight in.

What is Break Bulk?

Breakbulk is also known as general cargo are goods that are not containerized during transportation by ocean freight and are loaded individually.

The shipping vessels used for transporting breakbulk are known as general cargo ships.

The lack of containerization can be attributed to excessive weight or extremely large size that cannot fit into a container.

Breakbulk cargos are transported in bags, boxes, drum, crates, barrels, etc.

In some case, it is because they cannot fill the container hence the individual loading.

What is the Origin of Break Bulk?

Breakbulk originates from the phrase ‘breaking bulk’ which means unloading of goods from ships.

Before the second world war, folks used to trade items such as jewellery, foods, materials, etc. across the globe by ship.

They would load the goods into the shipping vessels individually in sacks, drums, boxes, etc.

This was a cumbersome process involving loading, packing, unloading, sorting and repacking of several goods.

It would take so long loading and offloading the ships at the terminals making the transit times even longer.

The general cargo ship would transport all types of goods for one or various clients at the same time.

The cargo ships sizes were estimated from the capacity, time and cost of cargo handling per vessel.

As a result, it was hard to determine the general cargo ship capacity and translating it into the economy.

Breakbulk was also not without challenges such as damaged goods, loss and theft during the shipping process.

Post second world war II brought about specialized merchant vessels for certain types of goods such as bales of wools, woods, etc.

This resulted into the bundling of goods into manageable sizes, known as ‘man load’.

Man-loads were in units of 30, 50 and 80 kilograms (kg) that were easy for the labourers to carry.

As time passed by, a shift from man-load was observed to unit loads known as ‘containers.’

Containerization was brought about in late 1960s with the evolution of technology and the increase in goods to be shipped.

This led to a sharp decline in breakbulk shipping due to its efficiency and minimal loss and damage of cargos.

Breakbulk shipping is still present but in a specialized form for goods that cannot be transported in a shipping container.

What are the Different Types of Break Bulk Cargo?

Some of the most common examples include:

· Baled Goods

Baled goods such as clothing are stashed with padding in between them which is about 50 mm thick.

They can easily absorb oil and catch fire thus are kept away from new paintwork.

Only bales with intact bands and clean are accepted on board.

· Bagged or Sacked Cargo

These include coffee, sugar, rice, fertilizer etc. and are packed in sacks.

They are double padded and stowed away from the ship’s sides, pillars and bulkheads to avoid damage.

They are covered with water proof paper to keep them from getting damaged by water.

· Corrugated Boxes

Corrugated boxes come in different types and designs and are used to package various types of dry goods e.g., fruits, etc.

They are stacked on top of each other but with a cushioning in between them and away from moisture.

Some are placed in pallets as a unit during shipments and are attached to slings to facilitate loading and unloading.

· Barrels or Casks

Barrels are cylindrical containers with a bulging middle made from wood and bound by metal hoops.

They are commonly used to store and transport alcoholic beverages such as wine, whisky, beer, etc. such are referred as casks.

When shipping barrels, they are stowed on their sides on a good layer of cushioning bed.

Quoins-wedges are placed on top of the beds to prevent rolling over.

They are towards the front and end of the ship and not across from side to side of the ship.

The second tier is loaded ‘bilge and cant line’ which is the hollow part between the lower barrels.

· Steel Girders and Structural Steel

Steel girders are steel materials majorly used for construction.

They cannot be containerized due to their long length thus are transported break bulk.

They are stowed fore and aft in ship to prevent piercing the sides of the ship.

· Drums

Drums made from steel or plastics are used mostly to transport and store liquid or powdered goods.

They are stowed upright with the dunnage between the tiers.

· Paper Reels and Rolls

These are loaded on their sides and care is taken to prevent damaging them.

· Automobiles

Automobiles are wheeled cargoes such as motor vehicles, trucks, etc. which cannot fit into a container.

They can be wheeled into the ship or lifted by cranes during the loading and unloading process.

When using the lifting method, the automobiles are drained off the fuel such as petroleum and gasoline.

This is contrary to roll-on and roll-off (ro-ro) procedure where the automobile is driven on board and off the ship.

Automobiles are secured by lashing when stowed in cargo ship to prevent movement that could lead to damage.

· Wooden Shipping Containers

These are crates or wooden boxes which are placed within the holds or tween decks with double and single cushioning respectively.

· Project Cargo

These are goods mostly equipment meant for a specific task such as construction usually large, heavy and of high value.

This type of breakbulk cargo can be disassembled when shipping and assembled after delivery.

Such equipment include; turbines, mining equipment, building and construction equipment, brewery tanks, heavy machinery, etc.

· Heavy Lift Cargo

Heavy lift cargo are typically goods that weigh over 100 tons and are oversized in nature.

They include items such as turbines, cranes, blades, generators, locomotives, etc.

How is Break Bulk Cargo Transported?

Break bulk cargo is transported individually in sacks, bags, crates, barrels, or drums.

They can also be palletized or secured by skids when in units while on board.

What is Break Bulk Fee?

This is the cost of unpacking, sorting and stacking cargo that is charged at the break bulk depot.

It is calculated based on the time taken to handle one cargo.

What is Break Bulk Shipping?

Break bulk shipping is the movement of cargoes without loading them into shipping containers and in their loose form.

This method involves direct loading of goods into the shipping vessels in their individual units such as boxes, bags, drums, etc.

It is ideal for shipping irregular, oversized and very heavy goods such as windmills, mining drills, etc.

Why Should You Ship Break Bulk?

Shipping break bulk cargo can be done when the goods cannot be containerized.

Such goods are always out-of-gauge (OOG), very large and heavy.

They include plant machinery, vehicles, logs of woods, naval ships, etc.

To transport goods to large vessels that cannot dock in shallow water entryways.

Some ports and terminals are not modernized therefore, breakbulk shipping is the only to access such ports.

When shipping small quantities for trial market, breakbulk is preferred as opposed to containerization.

What is Break Bulk Freight Rates?

Breakbulk cargoes shipping costs is derived from the volume or weight of goods expressed in ‘freight tons’ whichever is greater.

The volume is in cubic meters (CBM) whereas the weight is measured in metric tons (Mt).

What is the Difference Between Bulk and Break Bulk?

Bulk is dry goods that is transported unpacked in a loose form such as granules, particles, etc. and in large quantities.

Break bulk is cargo that is transported packed in units of the pallet, bags, drums, etc. and also non-units for steel.

Bulk is poured directly on the shipping vessels and includes coal, sand, grains while break bulks are in units.

Besides, bulk is homogenous in nature whereas breakbulk can be a single or a combination of goods.

Bulk is charged on the capacity of the shipping vessel whereas breakbulk is charged on volume or weight.

Furthermore, bulk cargo is loaded and offloaded in specific ports i.e., coal terminals in South Africa, whereas break bulks use any port.

Also, bulk goods are transported by vessels knows as bulkers or bulk carriers whereas break bulks use general cargo.

Bulkers have single-decker with several cargo holds while breakbulk cargo have single-decker, tween decker and box hold.

Both bulk and breakbulk can be cargo for one or many customers at the same time.

What are the Advantages of Break Bulk?

• Heavy industrial and power generation businesses can easily move their bulky equipment using breakbulk shipping e.g., windmills, drills, plant generators.

They will do this without disassembling and assembling the equipment later.

• Smaller vessels are used thus they can easily access less developed ports that cannot accommodate larger and technologically advanced container ships.
• You can have your goods transported without mixing with other commodities to their final destination.

This is common with hazardous goods and materials.

• Break bulk shipping does not require several paperwork hence it is easier to handle.

One bill of lading is enough to handle the shipment compared to a container which needs paperwork per container.

How do you Calculate Break Bulk?

To calculate the volume of the breakbulk cargo the greatest length is multiplied by the width and height of the shipment.

Alternatively, the shipment is weighed and the dimension with higher revenue is used.

The volume is measured in cubic meters and the weight in metric ton with 1 cubic meter = 1 metric ton.

For example:

A bag of sugar which weighs 7metric ton has the following dimensions: length of 3m, 2.5m width and 1.7m height.

To get the volume; multiply 3m x 2.5m x 1.7m to get 12.75 cubic meters.

The shipper charges USD 300 per freight ton.

Therefore, the bag would cost USD 300 X 7Mt = USD 2,100 or 12.75 CBM X USD 300= USD 3,825. The latter would be quoted since it fetches more revenue.

What is a Break Bulk Warehouse?

A break-bulk warehouse is a storage facility located at the dock for holding goods before loading into the ship.

Goods to be transported as breakbulk are brought to the warehouse before the breakbulk ship arrives.

Upon arrival, the goods are then taken out of the warehouse and loaded unto the ship using manpower or cranes.

What is the Difference Between Break Bulk Vs Container?

Breakbulk are goods loaded in their individual units or pallets whereas container cargoes are packed in shipping containers during shipping.

The containers can either be 20 feet or 40 feet in size with different dimensions and designs.

Break bulk shipment use one bill of lading while container cargo requires different bills of lading for each container.

Break bulk cost is calculated on weight or volume whichever is higher whereas for container cargos depend on the shipping method.

Container cargo may be calculated per whole container for FCL or per space occupied in the container for LCL.

Break bulk does not need developed ports to dock while container cargo requires modernized ports and while deep waterways for docking.

Break bulk method requires more time to load and unload as well as several human labor.

Container on the other hand is more efficient since it uses cranes to load and unload and is much faster.

Break bulk does not need disassemble of goods when shipping, this is mandatory for containers for extra-large cargo.

Break bulk is prone to damage, theft and quality compromise whereas container ensure safety and guarantees quantity and quality upon arrival.

Break bulk cannot be used for perishable goods that require specialized temperatures while on transit.

This is possible with containers since they are available in various specialized designs such as refrigerated containers and also reefers.

Both can use geared or gearless ships for transportation of goods.

What is Break Bulk Cargo Handling Procedure?

The breakbulk goods handling process involves the below:

Cargo to be transported is brought to the breakbulk warehouse and stored waiting for the shipping vessel.

From the warehouse, the goods are moved to quay after they have been sorted and arranged according to type of goods.

The goods are loaded unto the general cargo from the quay by longshoremen or cranes for small and bulky goods respectively.

Once all the individual goods are on board, they are stowed separately and properly secured before the ship leaves.

Upon arrival at the terminal port, the longshoremen and heavy cranes offload the cargoes and store them at the warehouse.

The goods are later sorted before they can be transported to their final destination.

How do you Load/Unload Break Bulk Cargo?

Loading and unloading breakbulk cargo requires several stevedores as well as gears such as cranes to achieve it.

Before the goods are unloaded, the ship’s hold is cleared of any previous cargos, cleaned and repaired where necessary.

The goods to be shipped are transported to the breakbulk depot where they are sorted and stored ready for loading.

When the ship arrives, the goods are moved to the quay and then loaded individually into the ship.

Stevedores carry the man loads into the ship’s holds while the ship’s gears or dockside cranes lift heavy goods.

Roll-on and roll-off equipment are used where lifting is not done to load and unload respectively.

They are then stowed in their respective position and areas, with dunnage in between them and secured.

Upon arrival at the terminal port, the goods are unloaded at the quay the same way they were loaded.

Those that were loaded using batches of sacks using cargo nets are discharged using the same slings.

From the quay, goods are taken to the warehouse for storage before the customer collects and others to the break-of-bulk point.

What are the Precautions for Loading Break Bulk?

Several factors have to be considered before loading break bulk goods into the vessels for shipping.

• Ensure the previous cargoes have all been unloaded and the ship holds thoroughly cleaned.
• The ship’s holds should be checked for any damages and repaired beforehand. This will avoid unnecessary accidents or damage of goods.
• All the crew on board should stay away from the loading area to avoid injuries due to rolling goods.
• When shipping bulk cargo, caution should be exercised to prevent them from coming into contact with the deck’s moving parts.
• Areas such as cargo lighting, fire detectors and flood piping systems should be properly covered before loading.
• Accommodation ventilation areas should be well covered.
• Other areas to inspect and service include; Bilge well and strainer plates which help in drainage. Bilge wells and line, sounding pipes, etc. should be strengthened if loose.

Which Commodities Can you Ship Break Bulk?

1. Sacks of coffee, sugar, rice, fertilizers, grains, etc.
2. Motor vehicles, submarines, small boats and ships.
3. Power plant equipment, mining drill, road construction equipment
4. Cement, coal, iron ore, grains, etc.
5. Paper rolls, wood, plywood, logs, etc.
6. Barrels of wine, whiskey, beer, etc.

What are the Challenges of Shipping Break Bulk?

Break bulk shipping is more expensive because the bulky and oversized goods take up more freight space than stacked containerized goods.

The cargoes are bundled on the ship hold where they can be easily damaged, stolen or even injure someone.

The process of loading and unloading of the individual goods is cumbersome and need more time to finish.

This leads to longer port turnaround time.

Uncovered break bulk is likely to be exposed to unfavorable weather and climatic conditions that may render it unfit for consumption.

The carrier vessels must be cleaned after every use to prevent unwanted mixing that may compromise on goods quality.

Is Break Bulk Shipping the Same as LCL Shipping?

Yes, it is.

Break bulk occupies a certain space on the shipping deck as the LCL occupies a certain space in a shipping container.

Both have their freight cost derived from their weight or volume whichever will give higher revenue.

What are the Different Types of Break Bulk ships?

There are various types of ships that are used to transport breakbulk goods such as:

· General Cargo Ships

These are also known as ‘multi-purpose cargo ship’ and are used for shipping breakbulk commodities.

They come in various sizes with either single decks, tween decks or box holds as cargo compartments.

· Bulk Carriers or Bulkers

Bulkers are vessels used for shipping loose cargoes such as dry bulk or liquid bulk in liquid, dry or gaseous form.

Dry bulk includes coal, iron ore, grains and sand while liquid bulk includes petroleum liquefied natural gas (LNG), oil, chemicals.

Liquid carriers are known as ‘tankers’ and can only be used for specific liquid bulk.

· Container Ships

These are available in two forms; small and large oversized heavy cargo.

The small cargo easily fit into the container thus are no longer breakbulk but container cargo.

The heavy lifts are loaded on special equipment such as flats and lifted on board the ships using gantry cranes.

· Heavy Lift and Project Carrier

These are special vessels used in the shipment of heavy equipment such as power plants, mining drills, factory equipment, etc.

They are commonly used in project cargo transportation and such cargos are loaded and unloaded by lift-on-lift-off (Lo-Lo) or Ro-Ro methods.

· Forest Product Carrier

These vessels are used in the transportation of wood and paper products both in their finished, semi-finished and raw forms.

The vessels can be open or enclosed depending on the needs of the client and cargo.

· Refrigerator Ships

A good example of a specialized ship vessel is the reefers which is used for banana storage and shipment.

Such shipping vessels are capable of controlling the atmospheric conditions in them hence are ideal for perishable foodstuff.

· Roll On/Roll-Off Vessels

Roll-on roll-off ships are majorly used for shipping wheeled cargo such as motor vehicles, trucks, trailers, etc.

The cargo to be transported is loaded by driving it into the vessel or lifted upon the ship using roll-on equipment.

Such vessels do not need dockside cargo handling equipment thus have a faster turnaround time.

What are the Different Flavors of Break Bulk Ships?

Break bulk ships are available in two different flavors:

· Geared

Geared general cargo vessels are vessels that are equipped with their own cargo handling equipment such as deck cranes and derricks.

Geared vessels can therefore dock in any port.

· Gearless

Unlike geared vessels, these ones do not have their own cargo handling equipment thus use dockside cranes and forklifts.

Gearless vessels can only use berths that have cargo handling equipment.

Which Factors Are Currently Affecting the Break Bulk Market?

Some of the main factors include:

· Long Port Turn-around Time

Breakbulk carriers need a long time to load and unload at the port for every ship that docks.

This is not economical as much time is taken by one ship at the port.

Containerization has greatly reduced the time taken in loading and unloading goods at the port.

This has seen an increase in revenue as more ships are able to dock and leave the port within a short time.

· Security of Goods

With breakbulk, goods are vulnerable to damage, loss and theft as their security is very minimal.

With the emergence of containerization, goods can be sealed at the departure port and opened by the owner at the destination port.

Besides, all goods in container cargo must be insured against theft, fire, loss or damage during transit.

· Undeveloped Ports

Breakbulk do not require modern ports for their operations hence they can dock even in undeveloped ports around the world.

Whereas this has given them an accessibility advantage, there are some goods that cannot be shipped to undeveloped ports.

This has seen a shift to containerization in order to access modern ports with advanced technology.

What is Broken Stowage?

Broken stowage is unoccupied space in the cargo compartment due to the varying shape or size of cargo or ship.

The irregular shape of the cargo does not allow for compacting or uniform stow of goods.

It can be caused by motor vehicles on decks or even frames in cargo holds such as stanchion.

This is expressed as a percentage figure of the total cargo compartment.

This lost space represents lost revenue therefore, it should be avoided by all means.

Broken stowage also allows cargo movement when the ship is in motion and can cause damage or accidents.

Smaller goods that can fit the broken stowage can be used to fill up the lost spaces and shipped as well.

They are charged much lower compared to when they occupy freight spaces, they include timber, wires, etc.

What is the Difference Between Break Bulk and Broken Stowage?

Break bulk are goods loaded into a ship in loose form and not in containers for shipping.

Broken stowage is the lost spaces within the cargo compartment or in containers due to irregular shapes.

Break bulk is calculated by its weight or volume and expressed in ‘freight tons’.

Broken stowage is calculated as a percentage of the total compartment space and the figure expressed as a percentage.

What is GRT NRT and DWT in Break Bulk Shipping?

· Gross Register Tonnage (GRT)

Gross register tonnage is the cubic capacity in a ship that is available for goods, stores, fuel, passengers and crew.

This volume of space is underneath the deck and in the enclosed space above the deck.

The gross register tonnage represents the size of a ship in volume measured in Moorsom tons.

· Net Register Tonnage (NRT)

Net register tonnage is the volume capacity of cargo that a ship can carry.

It is derived from GRT and expressed in ‘register tons.’

NRT definition was adopted from the Oslo convection but has since been replaced by a new universal definition from London convention.

The new definition of NRT is calculated independent of the gross register tonnage.

· Deadweight (DWT)

This is the weight of goods on board, the crew, fuel, water, etc. that can be safely carried by a vessel.

If the total weight carrier ship exceeds the DWT, the ship can easily sink or damage.

Deadweight is expressed in long tons; 1 long ton is equivalent to 1,016 kg.

What is Break-of-Bulk Point?

This is the point where the goods are transferred from one form of transport to another.

For instance, a container can be loaded from a ship, into a train then into a lorry for final destination.

This is because some forms of transport cannot be used in certain areas due to safety and cost implications.

What are the Disadvantages of Break Bulk?

The following are the disadvantages of break bulk:

· Not Cost-Effective

Occupies large space as compared to containers since more goods fit in a container for, they are stacked on each other.

· Labor Intensive

The loading and unloading of breakbulk cargo requires many employees as compared to containerized goods.

· Security and Safety Problems

Breakbulk goods are always bundled or strapped while being transported. This can lead to breakage, damage or stealing of the goods.

· Not Suitable for Perishable Goods

There are some perishable goods such as foodstuff and electronics that need to transport in a controlled temperature and safe condition.

How has the Break Bulk Market Changed Over the Years?

Break bulk shipping has been used for many decades in the shipping industry.

However, the introduction of containers in the late 1960’s drastically reduced the market share of break bulk shipping.

The containers provided a safer and convenient way of shipping goods.

It is estimated that 90% of all goods the world over are transported by sea with 70% being shipped in containers.

The maritime trade volume was 11 billion tons in the year 2019.

The projected growth rate between the years 2019-2024 is pegged at 3.4% due to the steady increase in global trade.

The breakbulk market has changed significantly over the last 15 years due to technological development in emerging countries.

Additionally, the multipurpose vessels (MMP) have been replaced with land and floating cranes that are less costly to maintain.

The Ro-Ro vessels have also taken a large share of the breakbulk market.

Going into the future, these trends provide a dwindling market for breakbulk shipping.

What is Break Bulk Bill of Lading?

Bill of lading is a legal document confirming that an agreement has been reached between the shipper and carrier of goods.

The transportation company issues the breakbulk bill of lading to the shipping firm.

It indicates the conditions of shipping the goods to their final destination and the carrier used for transportation.

The breakbulk bill of lading are normally used for land, ocean and air transport.

There are two types of breakbulk bill of lading namely non-negotiable and negotiable.

The non-negotiable bill of lading fixes the specific name of the receiver of goods.

Whereas in a negotiable bill of landing, the goods can be received by any person with original copy of bill.

Why Should You Choose Tj chinafreight China for Break Bulk Services?

You should choose to ship with Tj chinafreight China for the following reasons:

· Affordability

Tj chinafreight China has partnered with different shipping companies that offer them a discounted price.

This cuts down on the cost of transporting goods.

· Warehousing

They offer longtime free warehousing services to their customers.

Tj chinafreight has vast experience in container loading and safe handling of goods.

· Container Loading Supervision

They supervise on behalf of the customer while the supplier is loading the goods.

Once loading of goods is over, they send the videos and photos to the clients.

· Readily Available

They offer 24/7 online support to the customers who are searching for shipping solutions.

They have a highly responsive online customer care team that responds to raised questions promptly.

Additionally, Tj chinafreight China offers free quotation shipping for its customers all over the world.

· Professional Custom Clearance Services

Tj chinafreight China has a highly efficient professional team that ensures smooth custom clearance.

They are continuously up to date with the Chinese export policies and comply with them to avoid delays of shipping goods.

The firm’s employees present all the required product details to the custom officers for accurate paperwork.

If you’re looking for a freight forwarder in China who will help you handle all your bulk cargo needs, Tj chinafreight is here to help.

Whether you need customs clearance service, cargo loading supervisions or booking spaces in bulk carriers, Tj chinafreight will facilitate everything.

Contact us now for all your freight forwarding needs from China.

In this guide, you will find all information you’re looking for about cartage.

So if you want to learn more about this freight term, this is the right guide for you.

What does Cartage mean?

Cartage is the process of transporting goods (either by road or train) to a container freight station (CFS).

For goods to be shipped, they must be transported from the supplier to a CFS.

The cost incurred in transporting the product from the supplier to the holding dock is referred to as Cartage.

What is the Difference Between Freight and Cartage?

Freight refers to goods being transported, usually for commercial purposes.

Cartage is the process of transporting goods over short distances by either road or rail.

Is Cartage the same as Drayage?

In shipping, the terms Cartage and drayage are often used interchangeably, and sometimes a shipper may be confused about their meaning.

Drayage refers to the transportation of a container’s entire content over a short distance, usually within a metropolitan area.

Mostly, drayage involves picking up freight and delivering it to the shipping port or vice versa.

On the other hand, Cartage is transporting freight by rail or road from a supplier to a container freight station.

Cartage involves shipping all kinds of cargo in bulk – from food products, clothing, chemicals, etc.

It also consists of the removal of waste.

In this, goods are loaded into large trucks or carriages and hauled from one point to another.

What are Freight and Cartage Expenses?

Freight and Cartage expenses are generally the cost of shipping goods from the supplier to a customer’s final destination.

The expenses, in this case, are freight and Cartage expenses.

They include both local transportation at origin (Cartage) and international shipping expenses (freight).

Is Cartage a Direct Expense in International Shipping?

Understanding the kind of expenses you incur for international shipping can significantly help determine your profits.

Because Cartage expenses are directly attributed to the goods being shipped, they are therefore direct expenses.

Suppose you are importing, and you incur inward Cartage expenses.

You will record them on the expense side of the trading accounts.

However, if they are outward, then the recording will be as expenses on the profit and loss statement, which means that they are a direct shipping expense.

What is the Meaning of Paid Cartage?

When importing a product, you only budget with the product once it has reached your warehouse.

Paid Cartage refers to the Cartage passed to the customer.

When you purchase a product and deliver it to customers, Cartage cost is included in the product’s price.

And when the customer pays for the product, Cartage becomes an income rather than an expense.

What is the Cartage Fee in Logistics?

Depending on the incoterm and shipping term you use, you may encounter Cartage fee when moving your products once in a while.

Cartage fee in logistics is a sum charged by transporters for the service of delivering your products through rail or road.

In this case, the emphasis is on short inland distances.

How is Cartage Cost Calculated?

After understanding what the Cartage fee is, the next thing is to know how transporters arrive at it, lest they charge you heavily.

There are several factors in play when calculating the Cartage fee.

Your transport company can decide to combine several factors in determining the Cartage costs or use a single factor.

Nevertheless, some of the factors include;

· Mode of Transportation

Depending on the transporter, transportation by road can attract a higher Cartage cost than using a train.

· Distance

When it comes to logistics, distance is of the essence.

The Cartage costs increase with an increase in the delivery distance.

· Weight and Size

Weight and size also dictate the Cartage costs.

Heavy and bulky packages tend to attract higher Cartage fees than small and lighter loads.

· Type of Product

Type of products can be in terms of perishability, shape, value, or Hazmat products.

There is no fixed Cartage cost, and the amount due will depend on your transporters rate and the factors above.

HAZMAT and perishable goods often require special handling and transportation equipment.

Due to this, the cost of hauling them is usually higher than other products.

Who pays Cartage Fees?

Just like freight charges, incoterms tend to dictate Cartage fees and payments.

For instance, if you are shipping under CIF incoterm, your supplier pays all the transportation costs until you receive the goods.

Nevertheless, after receiving the goods and you want to deliver them at your doorstep, say from the port, you will be liable for the Cartage fees.

Can you Encounter Multiple Cartage Fees in a Single Shipment?

Yes.

The shipping process forms a long chain with numerous participants, including consignees, shipping agents, port operators, suppliers, inspectors, etc.

Therefore, instances of multiple Cartage fees exist depending on how many hands your package goes through.

For example, at the port (mostly busy ports), there are several processes that your goods must undergo, either before shipping or after.

During the movement of your goods from one place to the other within the port, you will incur Cartage fees.

If your products undergo an export inspection, you will also incur an additional charge.

What is the Difference Between Cartage and Wharfage Fees?

There is a distinction between Cartage and wharfage fees, and not necessarily must you pay both.

If you are shipping and you have chartered your vessel, you must encounter wharfage fees.

You are charged wharfage fees for using the port’s harbor in loading or unloading your consignment.

Conversely, Cartage fees are typical for moving products within the port and are charged by port operators.

What is Cartage Advice?

Usually, before having a transporter delivering your products from one point to another, there is a legal agreement.

This legal agreement is referred to as Cartage advice.

Cartage advice, therefore, is a legal document showing details of the product being transported.

It also serves as an acceptance letter at the destination affirming the receipt of goods.

Can Cartage Fee Documentations be Considered as Contract of Carriage?

Contracts of carriage contain information about the parties involved in this case;

• The consignee
• Logistics provider
• Consignor

The contract of carriage should also specify the nature of the product being transported.

Additionally, it should show the fulfilment of transportation as per the agreement.

When Cartage advice spells out all of the above aspects, it is considered a carriage contract.

What does a Cartage Agent do?

A Cartage agent picks up goods from point A and facilitates its haulage to point B.

They offer transport services.

And those who don’t, contract-specific Cartage companies to transport client’s products as advised.

In this case, during Cartage, the responsibility of goods always lies in the Cartage agent’s hands.

Also, note that these agents use their paperwork while transporting the goods.

How do you choose a Cartage Agent?

Every shipper desires convenience in the delivery of a product up to the selected delivery point.

However, specific reasons hinder shippers from fulfilling these desires.

Cartage agents come in handy to ensure no destination is unreachable.

Despite serving your business needs, it is essential working with a reliable Cartage agent.

This is because not all of them are worth serving your business.

To find a reliable Cartage agent, consider the following factor:

· Location

Location is an essential factor when choosing a Cartage agent as it determines how fast your shipment gets from point A to point B.

Agents who are much closer to major transportation hubs such as seaports and airports are considerably better suited.

Such agents are not limited by time or distance and thus can pick up and deliver your cargo without scruples.

When considering the location, always ask the agents about their location concerning the pickup point.

This way, you can rest easy knowing that your package will be transported on time.

· Experience

Not only does experience come in handy in navigating local routes, but it also saves you money.

A good Cartage agent should have positive reviews from their previous clients and mastery of the local laws.

Other than the experience of the company, the drivers too must be experienced.

Getting your goods from or to local areas can be challenging because of roads and hostility.

To be safe, the drivers must have adequate driving knowledge in any weather or terrain.

· Reliable Customer Service

Reliability is vital when choosing a Cartage partner and you can judge this from their customer service.

Quality customer service involves prompt communication, responses to concerns, dispute resolution, and adhering to the terms of the agreement.

Putting your products under the care of a Cartage agent requires more than trust.

It would help if you felt safe and relaxed because you are sure the Cartage agent will deliver.

A good agent should have an elaborate communication and tracking system.

You can check reviews, testimonials, and affirmations from those who have worked with the Cartage agent in the past.

· Warehousing Options

This is particularly important when importing products.

Other than offering transportation services, the Cartage agent should care for the goods while under their custody.

It will help to seek clarification from the Cartage agent if they have their warehouse.

This will save you a great deal in storage costs.

Do Freight Forwarders offer Cartage Services?

Freight forwarders’ role in international shipping is significant.

It goes beyond booking a vessel and presenting customs clearance documents.

Forwarding agents handle Cartage services, though only under special contracts.

They either use their means of transportation or hire from others.

To help save on costs and having many people handling your products, you can settle on a freight forwarding expert who arranges or offers Cartage services.

What is Cartage Outward?

Cartage outwards is the cost/expense of transporting products from your warehouse to the customer.

It is recorded on the profit and loss account when importing products.

What is the Difference Between Cartage Outward vs. Cartage Inward?

Both Cartage inward and Cartage outward refers to the costs of transporting products over shorter distances, usually within the same metropolitan areas.

Nonetheless, the two differ when it comes to making an entry in the books of accounts.

For Cartage outward, you make the entry in the profit and loss account.

While for the Cartage inward, you record the entry in the trading account.

What is the Difference Between LTL and FTL Freight in Cartage?

The choice between Less Than Truckload (LTL) and Full Truckload (FTL) can be confusing, especially when booking Cartage services.

The choice between LTL and FTL depends on the quantity of your cargo, price, and delivery time you desire.

· Less than Truckload

The LTL freight option offers an opportunity for low budget shippers with truckload weighing between 100 and 10 000 pounds.

Under this method, you only need to pay Cartage costs that equal the space your products occupy.

For example, if your shipment occupies only a quarter of the whole truck, your Cartage fee will be a quarter of the truck’s total Cartage fee.

Though economical and practical, under the LTL method, the delivery time is longer.

The truck will not depart if it’s not full, meaning that you have no control of the delivery time.

· Full Truckload

When shipping, the delivery time has more weight in ensuring you meet your customers’ demand.

The FTL means that you will hire the whole truck space for your transportation.

Regardless of whether your products occupy the whole truck space, you can still hire the truck.

In this case, your products stay undisturbed until they reach the delivery point.

Though the Cartage fee is high under the FTL method, your products are safe, and the delivery time is shorter.

Before settling on either LTL or FTL, consider your budget, shipment volume, and how fast you want your goods.

Otherwise, where Cartage cost is not an issue, FTL is your best choice.

Are Cartage Fees included in the Overall Shipping Fees?

When computing the overall shipping fees, you must include all the expenses used to deliver the product to the desired delivery point.

Cartage fees are significant, and when realized, it is impossible to ignore them as shipping fees.

Do you use Incoterms during Cartage?

Incoterms are important in shipping because they define both the buyer and the shipper’s obligations in settling shipping costs.

Because incoterms spell who is responsible for costs of delivering products, they apply for Cartage costs.

Depending on the incoterm in play, either the supplier or the buyer (importer) pays for the Cartage costs.

For example, under DDP incoterms, the seller is responsible for all transportation costs until they reach the buyer.

This means that the seller will handle Cartage costs of delivering the goods at the port and the final delivery point.

Conversely, under EXW incoterms, the seller only avails the goods at the pickup location.

After that, the buyer handles all other costs, including Cartage costs.

Does Freight Weight Matter when Calculating Cartage Fees?

Yes, it does. Some products are too heavy for ordinary trucks to transport.

Therefore, the Cartage fee will increase with an increase in weight.

However, other factors also come in handy, like the size and shape of the product.

Your product’s freight weight can be higher, but the space it occupies is smaller.

Depending on your transporter, you can incur the same Cartage fee as another product with a lighter freight weight with the same size.

What is a Cartage Vehicle?

You have already known that Cartage is the process of moving products over short distances.

To do this, Cartage companies use special trucks or trains known as Cartage vehicles.

How do Cartage Companies Work?

Cartage falls under the service industry, and the whole operation can involve a single Cartage vehicle with one owner or many Cartage trucks owned by one company.

The Cartage companies’ purpose is to deliver products from one point to another (usually short distances).

Cartage companies require specific qualifications to operate.

· Licenses and Permit

By law, all companies have to pay taxes so do Cartage companies.

The drivers must have a Commercial driver’s license and permits.

For drivers hauling sensitive products such as corrosives, they must undergo special training.

· Office Operations

Because Cartage companies operate in the service industries, planning and scheduling are needed.

As an importer, you have to place your request, receive feedback, and make your delivery payments.

· Collection of Necessary Details

Drivers operate under special routines and specifications pegged on provided details.

You should give the needed details to reduce any mistakes.

· Specialization

A Cartage company can choose to specialize only in transporting specific products.

In such a case, the Cartage Company must have the right set of employees.

If, for example, it deals in Cartage of security products, it can hire armed guards to secure the product during transit.

How does Cartage Affect Shipping?

Cartage is responsible for the delivery of products at several stages of the shipping process.

It could be to a CFS for customs inspection, a shipping terminal, or the customer’s address.

Generally, timely Cartage ensures timely shipping, while Cartage delays can also lead to shipping time delays.

When it comes to the overall shipping costs, an increase in the Cartage fees increases the shipping fee.

As you can see, Cartage has a lot of impacts on your business.

It requires more than just a Cartage company.

At Tj chinafreight, we can help with your Cartage needs to give you a seamless delivery of goods – contact us now.

If you want to learn about centralized examination station, the information you’re looking for is right here.

You’re going to learn about what it is, why you need it and importance in importing from China business, among other critical aspects.

Keep reading to learn more.

What is CES in Shipping?

A Centralized Examination Station (CES) is inspection facility used by custom brokers and freight forwarders.

They use it to quicken the tedious custom inspection process involved in importing merchandise into the United States.

US Customs and Border Protection (CBP) majorly uses the hub to physically inspect and examine imports and exports freights or cargo.

CBP defines a CES system as a privately operated facility that avails merchandise for physical examination

Why do Customs Send Shipments into a CES?

Majorly, the CES facility acts as a convenient means, to both the importer and CBP, to ensure that cargo is examined within a short time frame.

Most merchandise are moved to the CES for intensive customs examination.

These examinations can last anywhere between a week to 30 days.

Due to its lengthy span, the CES tries to shorten the time for the custom examinations.

Notably, the intensive customs examination is the most crucial in the customs exam process.

This not only highlights the need for CES but also gives more reason for the need for an effective facility.

What is a CES Operator?

CES operators are persons who have made a written agreement with the US Customs to operate a Centralized Examination Station (CES).

Importantly, the person(s) must have met the eligibility criteria of the US Customs service.

What are the Responsibilities of a CES Operator?

Upon signing an agreement, a CES operator is mandated with:

• Maintenance of the CES designated facility as per the agreed-upon security standards
• Provide adequate staffing and equipment for efficient opening, inspection, and closing of all merchandise scheduled for inspection by the US Customs service
• Bills the users on the services rendered as outlined in the fee schedule
• Bears all the expenses of operating the CES – US Customs service does not operate the facility
• Maintain a US Customs Service custodial bond within an amount determined by the port director.

The bond is inclusive of the liability for transporting the cargo to the CES facility managed by the operator.

Also, the operator is obliged to increase the bond amount as instructed by the port director

• Having efficient liability insurance for his/her property/ facility, and the people using the facility
• Ensure timely and regular filing with the port director
• If the merchandise is within district boundaries, the operator can offer to transport the merchandise to the facility.

Importantly, the operator will assume the liability of the merchandise from the point the merchandise departs to the CES facility.

• Avail office space, sanitary facilities, water, and parking reserves for customs official for free or impose a charge of $1 per annum.
• Maintain and avail all examination records to customs for a period of five years or more.

What are the Qualifying Features of CES Operator?

Below are the key qualifying features or minimum requirements of a CES operator:

Proximity/ Distance

The operator must clearly give the distance of the CES facility to the: CBP Port Office, nearest direct ocean discharge, and nearest major highway.

Experience

The operator must avail information that shows their experience in international shipment operations, and an understanding of CBP procedures and select regulations, or show a commitment to acquire the understanding.

Availability of the Facility

The facility should be available for use at all times, 24hours 7 days.

The CES facility operation hours will be determined by the CBP.

Provisionally, operations in the CES facilities will start from 8:00 am through to 5:00 pm, as from Monday to Friday.

However, the days and hours of operations may increase depending on the workload.

Secure Facility

The facility should be secure and have a barrier that separates CES cargo from any other cargo that is not under CBP jurisdiction.

Also, an intrusion detector should be installed on the CES to monitor what goes in and out of the facility.

Additionally, separate intrusion detecting systems must be installed for reserved high-security storage areas and CBP office space.

Access to CBP designated areas must be restricted from the public and/or unauthorized personnel.

Lastly, the facility must be under 24-hour surveillance including the use of security cameras and patrol guards.

Computerized Tracking System

The CES facility should have a tracking system capable of providing information on past and current inspections.

Advisably, the tracking system should provide information on the examination type and status, container number, carrier, and bill of lading.

Container Storage Area

There ought to be a secure and fenced yard that surrounds the facility and the storage structures put in place.

The yard area should have a minimum space of 125’ by 55’.

Some requirements that the operator’s warehouse should meet include:

• Compliance with the Occupational Safety and Health (OSHA) standards.
• Not less than two outlets for refrigerated containers
• A minimum lighting intensity of 300 LUX at floor level for sufficient illumination in the examination area
• Proper ventilation, advisably two ceiling fans and/or one large wall fan
• Not less than 6 cargo doors which are the same height as the dock (or presence of specialized equipment for efficient handling of the cargo).
• Not less than 1,000 square feet of open floor between the doors and the examination area

Which Government Agencies use Central Examination Stations?

Government agencies that use CES include:

• The United States Department of Agriculture (USDA)
• S Department of Homeland Security
• The Food and Drug Administration (FDA)
• Environmental Protection Agency (EPA)
• The Bureau of Alcohol, Tobacco, and Firearms (ATF)

What is a Customs Exam?

Depending on the type of cargo, customs exams can either be in form of a Tailgate, X-ray, or Intensive exam.

The major purpose of custom exams is to confirm whether the merchandise meets the set standards.

How does CBP Select Shipments for Customs CES Exams?

Commonly, CBP uses a targeting system that ranks shipments according to scores.

If a shipment exceeds a specific score, then there is a high possibility of being selected for examination.

Importantly, the fact that the CBP keeps the details of the targeting system confidential makes it difficult to determine whether your shipment will meet or exceed the score.

It’s worth mentioning that first-time shippers are more prone to inspection and subsequent subjection to customs exams.

This is aimed at establishing the credibility of the shipper.

How do you know if your Shipment has been Flagged for Customs CES Examination?

Most shipments are transmitted to Customs through the Automated Broker Interface (ABI).

In such a scenario, your broker will receive a ‘manifest hold’ electronic notification.

A similar notification is also transmitted to the carrier and also anyone listed in the Bill of Lading under the ‘Notify Party’ section.

Also, the consignee can get a notification if the latter section was left blank.

Note: Before a cargo arrives in the US, its details are to be manifested with US Customs.

This means that manifestation is based on information and data.

Consequently, a manifest hold will arise when there is a problem or some omission in the data or information provided.

After the manifest hold, the CBP may want to physically inspect your cargo.

Consequently, they will order that the shipment be moved to the nearest CES facility for inspection.

What are the Different Types of Freight Exams and Tests?

Some of the main exams include:

Tailgate/Backdoor Exam

This is the most straight forward exam.

It entails a visual inspection by the CBP officials.

The container seal is cut, the container is opened, a visual check is done, the container is closed (if there is no further suspicion), and the container is released.

VACIS Exams/NII

Vehicle and Cargo Inspection System (VACIS) or the Non-Intrusive Inspection (NII) is a common exam that you will probably come across.

As the name suggests, there is no intrusion of the container or the cargo components.

The container is simply X-rayed using 3D imaging to enable the CBP officials to check for contrabands or unlisted materials.

Due to its unobtrusive approach, this exam takes a shorter period and it is less costly. On the high end, it will cost not more than $300.

CET Exam: Security and Contraband

Contraband Enforcement Team (CET) examination entails a thorough search of your cargo or container.

It is an intensive and quite expensive exam initiated after the VACIS exam.

For the CES exam, your freight will have to be moved to the CES.

The inspection will be conducted manually/physically.

This exam is aimed at protecting US consumers from illegal weapons, narcotics, and alcohol.

The information that will be checked includes trademark or copyright, safety standards, and valuation of the goods.

Also, the Harmonized Tariff Schedule of the United States (HTSUS) classification is confirmed.

CET exams can last between 7 days to 30 days.

Moreover, it is quite costly considering that you will have to pay for every cost of the exam including the transportation cost to the CES facility.

USDA Exams

This exam is conducted by the US Department of Agriculture (USDA) inspectors.

The cargo is physically inspected for pests or anything that could cause harm to the US environment.

Products subjected to USDA exams range from food products to wood products (including crating and shipping pallets used)

What is the Customs CES Examination Process?

• The CES is notified of the exam hold via the Automated Manifest System (AMS). For the CET exams, the CES is notified by the CBP whether a tailgate or full strip exam is required
• The CES confirms the container’s availability for CES pick up at the terminal. If available, the container will be picked up within 24-48 hours.

In a scenario where CES cannot make the pick-up, other means such as – Customs House Brokers, CBP, Freight forwarders, and Steamship line – will be used.

• Upon delivery of the container to the CES, it is moved to the cargo door
• Cargo is availed to the CBP as per the exam instructions requested (full strip or tailgate)
• CBP is provided with a list of containers picked up by the CES for inspection, including the stage a container is at.
• The respective team conducts specific exams. For example, Contraband Enforcement Team conducts the CET exams.
• Cargo may remain on Government hold awaiting further inspection or release
• You can check the release status of your container via the CES internet tracking system or CES customer service.
• Upon the release of hold, CES gets the agreed payment or credit to cover the exam costs. Also, the CES will check for line release if a Steamship line was used.
• The container is finally delivered

Who Bears the Cost of CES Exams?

The CES exam cost is solely covered by the shipper.

This includes the transportation cost to and from the CES facility.

How Long do Custom Exams take?

The time custom exams take vary depending on the intensity of the inspection.

Also, the mode of transport to and from the CES facility majorly affects the time frame.

Generally, the majority of examinations are completed within 24hrs of the shipment arriving at the CES facility.

However, some examinations that require laboratory analysis, review, and thorough investigation will take longer.

Presumably, a complete intense CES examination will take about 7-30 days.

Who Supervises the Loading and Unloading of Containers at CES?

The supervision of the loading and loading of containers at a CES facility is done by the US government officials/ CBP officials.

Who Pays for the Loading and Unloading of Goods at a CES Station?

Every logistics handled by the CES station staff is payable by the shipper (you).

Loading and unloading of the goods at the CES facility is not an exception.

How Long can CBP hold your Shipment in CES?

Legally, CBP has up to 35 days from the date of arrival of the shipment, to hold your shipment in CES for examination.

CBP is legally required to release or seize your merchandise after 35 days.

However, the CBP may hold your merchandise longer than the stipulated period in circumstances.

For example, an exam filled with a lot of bureaucracy may stipulate a lengthy examination process.

What are the Holding Charges for Shipments Held at CES?

Before the examinations, there are no holding charges.

However, after the examination, a free time of 2 days is allowed. Upon the lapse of the free time, a charge of approximately $ 50/Day is levied.

Below is an example of a fee schedule with the holding charges.

Who is Responsible for Moving goods to and from CES?

The CES operator is in charge of all logistics.

However, the merchandise should be able to be picked up by the specific CES transportation service.

If the CES cannot offer the transport services, CBP, Freight forwarders, Custom House Brokers and Steamship line, can be used.

Importantly, no matter the transport means used, you are legible to pay the entire cost to and from the CES facility.

What are the Conditions for Releasing Shipments from CES?

Importantly, your shipment ought to have passed the CES examinations before being released.

If your shipment breaches or goes against the set examination standards, it can be seized.

Also, you have to completely pay the fees levied by the CES facility for the entire examination process before your cargo is released.

Note: Your container may be released by CES but it might not still get to you.

Such a scenario may occur if you still owe certain persons involved in the shipping process.

Say for example you have not paid the shipping company for extended usage of their container.

The company can hold your cargo until you pay the added amount.

How can you Avoid a Customs Exam?

Even though no one can be exempted from customs exams do not warrant laxity.

You can put measures in place to cushion the cost of the customs, and to reduce the likelihood of being on the losing end when a customs exam is ordered.

Here are some suggestions to ensure this:

• Deal with people you know. Knowing your suppliers, manufacturers, and vendors will make it easy for you to provide the needed information when requested.
• Ensure your shipping documents are in order. Do not have your documents all over. Check and counter-check that the details on product description, product value, and country of origin are clear.
• Consider securing a continuous bond as opposed to a Single Entry bond when you are planning to have multiple shipments in a year.
• Go FCL rather than LCL /LTL. The latter entails sharing a container with other importers. This may make your shipment be delayed when the other shipments within the same container are being examined.
• Register for an ACE and ensure you make a regular audit of your Customs Entries
• Increase the legitimacy of your shipping by applying for Customs-Trade Partnership Against Terrorism (CTPAT).
• When sourcing from a potentially high-risk country, ensure a regular audit of your supply chain to point out possible loop-holes and put in place a corrective measure.
• Ensure timely filing of your Importer Security Filing (ISF), preferably 24hours before the shipment is loaded overseas.
• Know the Priority Trade Issues (PTIs) highlighted by the CBP. These will give you an idea of whether your cargo has a high probability of being subjected to a customs exam.
• Importantly, maintain a cordial relationship with your customs broker for a prompt response if need be. Your broker should have an effective communication channel.

Are Container Freight Stations insured?

Yes, almost all Container Freight Stations (CFS) have a general insurance cover for potential risks such as fire outbreaks.

However, you should have a cargo insurance cover that guarantees compensation when anything happens to your shipment at the CFS.

Who Pays for Damaged Goods and Losses Incurred at a CES?

Unfortunately, you will bear all the costs including losses.

The CBP and CES are not liable for the damage of any commodity during an inspection.

You might find some of your goods damaged after being released from the CES facility.

Consequently, this is the sole reason for you to acquire insurance or coverage for the complete transit of your cargo up to its final destination.

What happens if a Violation Occurs during Customs Exam?

In a case where your cargo violates the specified customs exam, your broker will be contacted by CBP officials. CBP will then give details on the nature of the violation.

Your broker will then discuss with the CES manager on the appropriate course of action to correct the violations.

However, some violations are punishable by law.

For example drug and firearms smuggling.

How is Secure are CES (Central Examinations Station)?

CBP regulations try to ensure that Central Examinations Stations (CES) are secure by putting in place mandatory requirements in the facilities such as:

• Creation of a barrier that separates CES cargo from any other cargo that is not under CBP jurisdiction.
• Installation of intrusion detector systems on the CES and the offices reserved from CBP officials to monitor what goes in and out of the facility.
• Restriction of access to CBP designated areas from the public and/or unauthorized personnel
• 24-hour surveillance including the use of security cameras and patrol guards.

What Other Value-added Services can you Find in a CES Facility?

• Transportation to the final destination
• Container Freight Station (CFS)
• Heavy Lifting/ Cross-Docking
• Warehousing
• Food and Drug Samplings
• Drayage services
• Making your cargo CBP compliant

How do you track the CES Examination Process?

CES facilities have computerized tracking systems that provide information on the examination type and status, container number, carrier, and bill of lading.

What Factors should you Consider when Choosing a CES Facility?

You should consider the following key aspects:

Location

The CES facility should be near the port of landing and the final destination.

This will save on the transport cost to and from the CES facility.

Track and Trace Facilities

An efficient track and trace system will enable you to know the examination status of your shipment.

Consequently, you will be able to handle the necessary logistics as you await the release of your shipment.

Personnel Skill

Skilled personnel will ensure the correct handling of your cargo.

Also, their experience will help in efficient and economic correction of any CES violation, if need be.

Facility Size and Capacity

Facility size will affect how fast the examination is conducted.

A larger CES facility is likely to be having more experienced personnel and machinery for a quick examination.

Security

You would not want the contents of your container going missing.

Being keen on the security measures put in place to ensure the safety of your cargo may help you prevent potential theft or the disappearance of your cargo.

Machinery and Infrastructure

The more modern and efficient the machinery and infrastructure, the lesser time your shipment will be held for examination.

Additionally, efficient cargo handling equipment will reduce the risk of damage to your merchandise.

Cost

Shipping in itself is a costly affair. Cutting costs by choosing an affordable CES facility is economically advisable.

What happens to Multiple Containers on a BOL when one is Selected for CES Examinations?

When one container is selected for CES examinations among multiple containers on a Bill of Lading; the rest of the containers can be transported with the selected container to the CES facility

Which Types of Cargo get Preferential Treatment at CES?

Some of these cargoes include:

CTPAT Cargo

The Customs-Trade Partnership Against Terrorism (CTPAT) is a pact where the CBP and trade members work hand in hand to counter-terrorism.

The partnership aims to make international trade legitimate and secure.

Consequently, members of CTPAT have their cargo exempted from most CBP exams, among other preferential treatments such as:

• Fast inspections
• Reduced wait times at the borders
• Business resumption priority following national disasters like terrorism
• Designation of a Supply Chain Security specialist
• Usage of Free and Secure (FAST) routes at land borders

How do you Request Permission to Transfer Cargo to CES?

You will require Customs Form 3461 or 3461 (ALT) or an electronic equivalent of either forms; to request permission to transfer the cargo to CES. Here is an example of the form.

Figure 8 Form

Who Assumes Liability during Cargo Transfer to CES Facility?

When the CES operator picks up the cargo from the port of landing, the operator assumes the liability of the cargo through the customs custodial bond.

If the shipment is transported to the CES facility by an importing carrier, the carrier continues to assume the liability of the shipment.

In case a bonded carrier is transporting the cargo to the CES facility, the bonded carrier is liable for the transfer.

Lastly, if the importer or his/her agent makes the transfer, then either of the two shall assume the liability of transfer.

Do you need a Customs Broker to help you Navigate Customs CES Exams?

The customs world is a rather rocky one.

Navigating the customs CES exams can be a hard nut to crack when you lack the expertise.

For these basic and outright reasons, you need a customs broker.

You need someone to advise you on the appropriate cause of action to hasten the CES exams process.

What happens to your Consolidated Shipments during Customs Examination?

When the container holding the shipments is flagged for a customs examination, then all the shipments will be taken to the CES facility.

Consequently, the delivery of your shipment may be delayed without having any violations.

At Tj chinafreight, we will help you with all your shipping needs – from free shipping container, warehousing, customs clearance to booking spaces in ship.

Tj chinafreight makes shipping from China easy and straight forward – Contact us now.

I know you’re probably wondering what cargo ready date (CRD) is.

Don’t worry, this guide will explain everything you need to know about CRD.

So keep reading to learn more.

What is the Meaning of Cargo Readiness in Shipping?

This term is connected to international trade and refers to an exact date when the vendor or shipper makes the cargo ready to be handed over to a transporter.

What is Cargo Ready Date (CRD)?

Cargo ready date refers to the day that shipment is expected to be prepared at the supplier or another location named.

This can be a warehouse, container yard, or airport terminal.

The shipping company is supposed to update and adjust the app’s shipment plan whenever a change in the dates takes place.

What is the Difference between Cargo Ready Date and Delivery Date in Shipping?

Cargo Ready Date refers to the specific day when cargo is anticipated to be ready at the supplier’s location or another named place.

On the other hand, the delivery date is the actual date that the cargo is delivered to the buyer.

It is important to note that the delivery date does not always be uniform with the expected delivery date.

It is due to several arising factors.

Is Cargo Ready Date the Same as Estimated Time of Departure?

No, Cargo Ready Date is not the same as the Estimated Time of Departure.

Estimated Time of Departure refers to the specific date and time that cargo is expected to depart from the supplier’s location.

On the other hand, Cargo Ready Date will only specify the date when cargo is anticipated to be ready at the supplier’s location or another named place.

How do you Determine if Cargo is Ready?

Some of the elements that determine if cargo is ready to include:

• Availability of the complete shipment at a location that is agreed with the parties.
• Shipment is well packaged to be moved by the agreed-upon means of transportation.
• All documents for international shipping are well prepared and made available.

What is a Cargo Ready Shipment Example?

An example of a cargo-ready shipment is a wooden crate that can be stuffed with ease as a less than container.

This shipment should sustain being loaded into a truck at the shipper’s premises, unloading into a warehouse of a freight forwarder, and reloading into a container.

It should also sustain shipping to the required destination, which includes handling techniques applied to the container.

When establishing the value of the packaging’s worthiness, it is essential to consider that the cargo will be handled not less than six times.

Also, be aware of other impacts during transit.

Is it Possible to Change Cargo Ready Date?

Yes, it is possible to change the cargo ready date, especially in situations where cargo is prepared before the parties agreed upon.

There will be needed to plan for an early shipment in this situation, and this will require effective coordination with the freight forwarder.

The Cargo Ready Date may also change if cargo is ready after the date agreed upon by the parties.

In this case, there will be a delay in the delivery of the cargo to the buyer.

When Does CRD Change?

Cargo Ready Date can change when:

• Cargo is ready before the Cargo Ready Date.
• If cargo is ready after the Cargo Ready Date agreed upon by the parties.

What Happens when CRD Changes?

Once the Cargo Ready Date passes, all freight quotes expire, and the rates are related to the selection.

It happens because carriers’ rates of freight are given very frequently and have a limited time guarantee.

Due to this, ocean FCL rates have a validity period of two weeks at a time.

LCL rates are relatively longer and usually last up to the end of the month.

On the other hand, air rates are more subject to variation and may expire after a week or even less.

In case a booked quote expires, then there will be the need for requoting the shipment using the new updated rates.

Once this is done, then the cargo can be moved to the buyer.

Who sets Cargo Ready Date?

The cargo ready date is agreed upon by the seller, buyer, and freight forwarder.

Are There Special Packaging Considerations for Cargo Ready Goods?

Yes, there are special packaging considerations for cargo cargo-ready goods, which depend on transportation mode.

Less than container shipments and ocean freight cargo should be well packaged in a way that prevents damage during handling and sea transportation.

When the cargo is handed over to the freight forwarders, they will check to ascertain if it is deemed worthy of transport.

They will then either reject or repackage the cargo at a cost.

The packaging of the Cargo Ready Goods must be able to withstand:

• Loading onto trucks at the premises of the supplier.
• They must also withstand unloading using handling equipment like forklifts and cranes.
• Reloading into marine containers.
• Un-stuffing of the container at the premises of the freight forwarder.
• Reloading onto a truck for transportation.
• Unloading at the buyer’s premises.

The packaging of Cargo Ready Goods generally depends on the goods.

Some of the packaging examples include:

• Cardboard.
• Wooden crates.
• Boxes.
• Rolls.
• Drums
• Bales.

Pallets can help reduce the risk of damage because they help make the handling of the cargo automatic.

Less of the container load shipments are recommended to be stacked.

Cardboard boxes must be strong and filled well to avoid crashing if cargo is put on top of them.

Does Cargo Readiness Mean that the Cargo is Cleared for Export?

No, cargo readiness does not mean that the cargo is cleared for export.

This is because the custom clearing process of exports is conducted by a customs house broker or freight forwarder and occurs after the cargo readiness date.

The documents are required to be submitted alongside the customs declaration first to the relevant authorities.

What is Notice of Readiness? And Who Issues it?

Notice of readiness is agreed between the exporter and importer or buyer and seller.

The seller or the exporter issues it to the importer and freight forwarder to reconfirm cargo readiness.

Notice of Readiness is most often referred to as NOR.

What Happens After Cargo Readiness?

Once cargo is ready, there is always an agreement between the importer and exporter (seller and buyer).

This agreement states that the exporter should notice readiness to the importer and freight forwarder for reconfirmation of cargo readiness.

This document is frequently referred to as Notice of Readiness (NOR).

After cargo readiness, the cargo is handed over to the party supposed to conduct transportation for the buyer.

The party may either be a freight forwarder or a locally sourced transportation company.

Can Cargo Be Ready Before or After CRD?

Yes, cargo can be ready either before or after the Cargo Ready Date.

In case it is prepared before the Cargo Ready Date, there can be an arrangement for the cargo before shipping.

When cargo is ready after the Cargo Ready Date, then there will be a delay in delivery.

What Happens when Cargo is Ready is After CRD?

When cargo is ready after CDR, there will be delayed delivery to reach the buyer.

In this case, there should be an agreement between the parties on what the merits should be.

Some of the merits could be introducing given flexibilities in the cargo readiness dates and having an agreed penalty scheme for delays.

The parties may also decide to use a faster mode of transport like airfreight and all the party’s costs at fault.

What is the Relationship Between Incoterms and CRD?

Cargo Ready Date (CRD) refers to the day on which your cargo is anticipated to be made available at the supplier’s location or another specified location.

It is the expected date that your cargo will be ready and available for collection by a carrier.

That is, when handling cargo on Ex Works (EXW) terms, the seller will take it.

In case the buyer decides to deliver their cargo on a relevant drop-off point, then the CRD will be the date which the shipment is dropped off.

Of course, this can happen when shipping on Free on Board (FOB) terms.

The drop-off point may be either at the airport or seaport.

How Does CRD Affect Shipping?

Some of the effects of CRD on shipping include:

• Delayed delivery: in case cargo is not ready before the parties’ agreed-upon period, then there will be a delay in the delivery of the cargo.

It will result in the incurrence of additional costs.

• Early shipment: when cargo is ready before the cargo Ready date, it may be shipped to the buyer earlier than planned.

What does ‘All Short’ mean Regarding Cargo Readiness?

‘All short’ in terms of cargo readiness refers to when the destination service center does not receive a shipment as per the schedule agreed upon.

Then reports it as ‘all short.’

Can I Track Cargo That is not Ready?

You may track cargo that is not ready as order tracking is essential in the shipping process.

Some of the reasons why you should track your order include:

• Reduction of costs: it helps you avoid incurring the cost of dealing with customers’ complaints due to delivery of goods that do not meet their specifications.
• Meeting customer expectations: tracking cargo through every step of the cargo readiness process will ensure that the customers’ needs are met efficiently.
• Have more control over fulfillment: monitoring cargo that is not ready will enable you to access more control over the process of cargo fulfillment.

What Happens if my Goods get Damaged or Lost Just Before CRD?

In case your goods get damaged or lost just before Cargo Ready Date, steps you may take include:

• Fill out the proper freight claim, cargo claim, shipping claim, or transportation claim paperwork.
• Pay the cargo bill as soon as possible.
• Write down everything and, if possible, take clear photos.
• Notify your insurance underwriter.
• Keep all the necessary documents:

1. Copy of the paid freight bill.
2. Copy of the bill of lading.
3. Copy of the invoice indicating the amount paid for the goods.
4. Copy of the packing slip.
5. A standard claim form or a letter is showing the shipment and the amount of the claim.
6. Pictures of the damage.

It is essential to gather a lot of information and evidence to obtain compensation for damaged or lost cargo.

It would be best if you also had a professional expert to make all the claims and documentation to save on the costs.

What can delay my Shipment’s Cargo Ready Date?

Shipment’s Cargo Ready Date can be delayed by:

Conflicting Buyer and supplier timetables: suppliers most often give an ambiguous Cargo Ready Date to attract and secure buyers.

In case this date moves, then the timeline of shipping the cargo will be delayed accordingly.

Should I pay for my Order Before Notice of Readiness or After?

You may pay for your order either before or after the notice of readiness, depending on the agreement you have with the seller.

Some of the requirements for a valid notice of readiness to be served include:

• Vessel should arrive
• The vessel must be ready to receive or discharge its cargo.
• It is tendered contractually.
• Notice of readiness is given to and received by the proper person according to the agreement.
• The notice of agreement is issued at a time that the charter party permits.

Can I Estimate the Delivery Date by CRD?

Yes, you can estimate the delivery date by Cargo Ready Date.

The estimated delivery date refers to when the buyer may expect the cargo to arrive at their location.

This date may be determined once the cargo ready date has been specified, and the goods are at the carrier’s custody.

However, it is essential to note that delays in shipping cargo may happen due to several reasons.

In such scenarios, the estimated delivery date makes it possible for the buyer to put plans in place.

Does Cargo Ready Mean that the Goods Have Already Been Inspected?

No, Cargo Ready does not necessarily mean that the shipment has already been inspected and cleared by customs.

The customs clearance process is carried out by either the freight forwarder or customs broker and can only be done only after the cargo readiness date.

It is a requirement that the documents be submitted to the relevant authorities alongside the customs declaration.

How do I Coordinate CRD when Sourcing from Different Suppliers?

When sourcing from a different supplier, the Cargo Ready Date may or may not remain the same depending on the parties’ agreement.

It is essential to ensure that all suppliers get the cargo ready on the same date by using the following helpful tips:

• Communicating with the suppliers to avoid mistakes.
• Coordinate your production schedule totally with that of the suppliers.
• Provide an update on new products or strategic changes so that they may adapt to those adjustments.
• Understanding the costs of the suppliers and the value that they provide.
• Establishing your business’s priorities with the suppliers.
• Working with businesses that help in strategizing services.
• Establishing long-term partnerships with the suppliers.
• It is continuously monitoring the performance of the suppliers.
• Planning for contingencies and everyday exceptions.
• Payment of bills on time.
• If possible, meet face to face and look at how the supplier’s businesses work.
• Meet the personnel that will be managing your account and make sure they are easily reachable.
• Assist your suppliers by planning orders on time to avoid delays.
• Make your business very essential to the supplier.

The terms for negotiating with your suppliers need to be based on:

• Payment terms: this may be the commercial bill, bank draft, foreign currency, or paid for by the bank.
• Potential costs: maybe taxation, administration, transactions, transport, and general payments.
• Possible risks; may be either late payment to the vendor, or undelivered, late, or faulty goods.

At Tj chinafreight, we help you import seamless from China while reducing the shipping and cost.

Whether you need free warehousing China, free shipping container or customs clearance at affordable rate, Tj chinafreight will handle everything for you.

Contact us now to save on shipping cost and time.

If you have any question about this common freight term – carrier; you will find the answer right here.

This guide explores every information you’d wish to know about carrier, from basic definition, services, rates and classification, among other vital aspects.

So, keep reading to learn more.

What is a Carrier in Logistics?

A carrier refers to an individual who has the legal permission to transport cargo via land, air and water.

They usually serve the purpose of a shipper from one point to another.

What is the Role of Carriers in Shipping?

The role of carriers in shipping include:

• Taking over the shipment.
• Preserving the shipment from damage during transportation.
• Transportation of the shipment to its destination using the most appropriate means of transportation.

What is the Difference Between Carrier and Shipper?

A carrier refers to any individual or company who performs the purpose of transporting goods in a contract of carriage from one point to another.

On the other hand, a shipper is an individual or company who owns or serves as the goods’ supplier to be shipped from one point to another.

How Many Types of Carriers Are There?

• Common carrier: this is a provider of transport that gives their services to any individual or company because of the legal permission.

A common carrier can work with many shippers in a day as they do not have a binding contract.

• Contract carriers: this is an individual or company that gives transport services to a specified shipper for a long duration.

This agreement between the shipper and carrier is bound by a long-term agreement contract between the parties.

• Local carriers: this consist of most of the trucking industry and almost sixty per cent of all carriers who use motors.

They can provide service to limited areas.

• Regional carriers: these have more trucks and larger fleets, and they serve in vaster areas.
• National carriers: these are the largest carriers available in the market.
• Private carriers: these transport freight on the shipper vehicles and therefore do not charge additional fees.
• For hire carriers: these can transport general freight and thus charge additional fees for service.

What Services do Freight Carriers Offer?

Services offered by freight carriers include:

• Warehousing: freight carriers know how to handle different types of goods by either owning their warehouses in various locations.
• Offering advice to the shipper: freight carrier advises and helps clients move cargo more efficiently from one point to the destination.

In case of any possible changes in freight transportation, they inform the client in advance.

• Booking freight space on the mode of transport to be used: freight carriers help shippers by booking cargo space on trains, aeroplanes, ships, trains, or other means of transport.
• Provision of shipping options like road haulage, containerization, and air freight.
• Packing: the freight carrier organizes shipment packaging before it is dispatched for transportation to protect it from damage.
• Distribution: they assist in the delivery of the cargo to the shipper’s destination.
• Cargo insurance: freight carriers may at times organize for insurance of cargo depending on the contract of agreement.

This will ensure the security of the goods in case they are damaged or lost while in transit.

• Documentation and customs clearance: the freight carrier organizes and delivers documentation to import and export goods.

They also ensure these documents meet the custom requirements and the contract agreement between them and the shipper.

Which Industries Benefit from Carrier Services?

Some of the industries that benefit from carrier services include:

• Food and drink.
• Plastic and resin.
• Automotive.
• Pharmaceutical and healthcare.
• E-commerce and retail.
• Transportation service and trade show.
• Aerospace and defence industry.
• Industrial supplies and produce.
• Sensitive deliveries and specialty Duties of a common carrier include:
• Carrying goods safely: a common carrier has the duty of transporting goods safely up to the destination.

In case there is loss or damage on the way, the carrier will be responsible.

• Acceptance of goods: the common carrier has the obligation of accepting the goods from any individual that would like their goods to be transported.
• Usage of the common route: the common carrier can transport the goods using the general route.

The carrier should not engage the shortest route in transportation and should also treat ordinary circumstances.

• In time delivery: the common carrier has the duty of delivering the shipment within the time agreed upon in the carriage contract.
• Obedience of instructions: the common carrier should honour the sender’s instructions concerning the transportation of goods.
• Delivering to the right person: it is the duty of common carrier to ensure that the shipment is handed over to the right person.

In case the shipment is delivered otherwise; the common carrier will be held responsible.

• Proper place: the common carrier must ensure that the goods are delivered to the right place specified in the contract.

Who is the Carrier in a Bill of Lading?

In a bill of lading, the word carrier includes the company named the carrier on the bill of lading, the defined vessel, and the owners and operators.

This term also includes the demise and time charterers, any substituted or connecting carriers.

It also constitutes any time engaged individual or charterer to the extend bound by the bill of lading whether they serve as the carrier or Bailee.

The carriage of the goods is regulated by all the terms and tariff provisions by the governing bodies.

Copies of the necessary provisions can be obtained from the carrier when requested.

The carrier has the responsibility of ensuring port to port shipment and combined transport.

What is the Difference Between Carrier and Freight Forwarder in Logistics?

When shipping internationally, businesses have the challenge of deciding whether to use an international freight forwarder or work directly with a transportation carrier.

Some of the differences between carrier and freight forwarder include:

• Shipping documentation: Carriers issue their bill of lading which may or may not be based on a given global standard but the agreement contract.

On the other hand, Freight forwarders must issue a bill of lading which id based on standardized documentation.

• Specific role: carriers serve as middlemen and oversee the shipper’s cargo’s transportation up to the destination.

Freight forwarders, on the other hand, serve more like an agent to the shipper.

• A carrier is a shipping line while a freight forwarder is not a shipping line.

This is because you can book a carrier directly with a shipping line while for freight forwarder, you need to book them through as a forwarder.

• Containers: freight forwarders do not own any shipment equipment while most carriers own and operate their shipping containers.

What is a Carrier Facility in Shipping?

A carrier facility refers to a large warehouse used to keep packages ordered by people for a specific geographical location.

Carrier facilities are owned by different brands which can carry packages.

Some of the carrier facilities may be very large warehouses possessing fleets of delivery trucks whereas others may be small retail facilities in the front.

It will depend on the coverage area, a few square miles or even entire countries.

Packages can pass via one carrier facility, or they may pass through a few different carrier facilities.

Is there a Difference Between Shipping Line and Carrier?

In many cases, they are the same thing, but also, there are differences between shipping line and carrier.

In the simplest terms, a carrier referred to as a shipping line is an individual or company that performs transport functions for a shipper.

The carrier can carry the cargo using either sea, road, rail, inland waterway or even a combination of these modes.

Nowadays, there are agreements of sharing vessels, consortium, and alliances within the shipping industry.

It has led to various parties in the shipping industry, in terms of ship operation, container service and line service.

In such alliances of shipping lines, all lines may be running vessels of their own but based on a liner schedule which is fixed.

Each shipping line will have to share vessel space, and the number of vessels usually determines this operates by each shipping line.

In this case, each of the shipping lines will load and discharge cargo according to the agreed-upon schedule irrespective of whether they own the ship or not.

This will call for agents to act as vessel agents and carrier agents.

The functions of the vessel agent will include:

• Coordination with partner lines concerning their cargo details, size, weights, types or hazardous for finalization of stowage plan.
• Liaising with port authorities to ensure that the vessel berths on time, starts and completes cargo operation
• Operation of the vessel.

In case a carrier serves as a vessel agent; their operation division will have to handle the vessel side while the commercial division handles the carrier agent side.

The carrier agent will have to handle the following commercial activities:

• Cargo booking.
• Issuance of their bill of lading.

Because the shipping lines will be giving their bill of lading for the shipment loaded under their control, they will be responsible for any damages.

Can you consider NVOCCs as carriers?

Yes, you can consider NVOCCs as carriers because they act as middlemen and make one hundred percent work for shippers.

NVOCC stands for Non-Vessel-Operating Common Carrier.

It is usually issued its bill of lading which at times may not be based on any global standards.

However, it is difficult to establish how many NOVCCs are operating worldwide because any regulatory body does not govern them.

Before the provision of service, NVOCC is required to meet the following:

• Secure a license from the FMC.
• Publish a tariff about charges that willapply to clients.
• Provide proof of financial responsibility in case payment is required for any claims that may occur.

The client list of NVOCCs may include:

• Exporter
• Importer
• Clearing agent
• Freight forwarder
• Freight broker

How Does your Choice of Carrier Influence Shipping?

Some of the factors to consider when choosing a shipping carrier include:

• Type of products: when choosing different carriers, it is important to carefully examine the shapes, sizes, and services they offer to ascertain the best choice.
• Location: If you would like to ship both locally and internationally, you must select a carrier that will meet both functions.
• Cost, time, and quality: pricing will greatly influence a carrier’s choice as it is important to choose a carrier you can afford.

It is essential to consider the quality and the delivery time and the cost of the carrier.

• Reliability: it is important to establish if the carrier is reliable to assist you in building the company’s reputation.

A reliable carrier will ensure that your cargo reaches its destination on time as promised.

• Services offered: it is advantageous to do business with a carrier who offers multiple services and can effectively meet your company’s needs.
• Safety: Safety of a company’s product is a key consideration; therefore, when selecting a carrier, it is important to select one that has a safe reputation.
• Sustainability: when doing international shipping, it is important to establish if the carrier follows sustainable practices.

Customers also pay close attention to the environment’s sustainability.

• Carrier stability: selecting a stable carrier in the market and has been doing business for long is important to your business’s long-term functioning.

It will not be economical to ship cargo at a lower price using a carrier that is not stable in the market.

• Asset versus non-asset-based carriers: asset-based carriers tend to have all the necessary equipment for transporting your cargo, unlike the latter.

It is important to choose asset-based carriers to minimize the hands that handle your freight, thus minimum room for errors during shipping.

• Insurance: it is important to know that not all carriers provide insurance of cargo despite it being an important feature in international shipping.

Therefore, it is important to select a carrier that provides insurance to have peace of mind.

How Much does a Carrier cost?

Different carriers tend to have different rates for shipping cargo depending on the following factors:

• Service mix
• Weight and zone distribution
• Destination points
• Dimensional weight
• Carrier perks
• Commodities
• Other factors: include

1. Shipments that require special packaging.
2. Declared value.
3. Additional handling.
4. Special pickups
5. Oversize shipments.
6. Maximum shipments.
7. Dangerous goods.
8. Signature requirements for delivery.
9. Seasonality

The key consideration in pricing is establishing how the fees you are incurring aligns with the actual costs being incurred by carriers.

After determining this, you should negotiate accordingly.

Do Carrier Fees Include Fuel?

Yes, carrier fees include fuel, and this is charged on top of the basic shipping rates.

These fuel surcharges are put in place to assist carriers in taking care of the costs that are related to fuel.

These costs are put in place due to the constant fluctuation in fuel prices.

These fees are determined weekly depending on the fuel price report compiled by the Energy Information Administration.

Most carriers tend to use these rates using a calculator for fuel surcharges to determine the additional charge to impose.

This offers protection to their bottom lines.

If you consistently ship large volumes of cargo, you may negotiate with the carrier for a flat rate for shipments to curb these surcharges.

How are Carrier Rates Determined?

The actual price that one pays depends on various factors, many of which directly relate to the shipment.

The main factors determining the rates of carriers include:

• Weight of the cargo.
• Truck freight rates.
• Size of the cargo.
• Mode of transport.
• Distance to be covered.
• Points of pickup and delivery points.
• The actual goods to be shipped.
• Handling costs.
• Type of cargo.

Each of the above factors plays an independent role in establishing carrier rates, and they also relate to each other.

Do Carriers Charge Accessorial Charges for Shipping?

Yes, carriers charge accessorial charges for shipping.

An accessorial charge refers to a fee which is added to the freight invoice of a shipper.

This fee is for services which the carrier carried out beyond that agreed upon in the agreement contract.

Accessorial charges cater to services rendered past the pickup and delivery operation established when the shipment was made.

They tend to cover many services provided beyond the fuel surcharge and the line haul charge concerning cargo transportation.

These changes manifest in a variety of forms and affect all modes of transport services available.

Some charges may be one-time incurrence while others may accelerate daily until a solution to the situation is found.

Some of the top accessorial charges include:

• Yard Pulls.
• Advanced Notification.
• Driver Count.
• Driver Clean.
• Hazardous Materials.
• Inside Delivery.
• Layover.
• Liftgate.
• Limited Access Fee.
• Redelivery.
• Residential
• Rework.
• Scale.
• Sort / Seg.
• Stop Off Charge.
• Storage.
• Truck Order Not Used (TONU).
• Bill of Lading (BOL) Correction Fee.
• Chassis
• Demurrage.
• Detention.
• Driver Assist.
• Lumper.
• Misuse Charge.
• Out of Route Miles.
• Oversized / Overlength.
• Overweight.
• Per Diem.
• Pool Setup or Teardown.
• Reclassification & Reweigh.

Why do Carrier rates Change Every So Often?

Carrier rates change every so often due to the following factors:

• Bunker fuel costs: this refers to a floating cost which the carrier varies depending on the fuel prices; when they rise and fall.
• Market demand: carriers tend to raise their rates during the peak seasons due to the increased demand.

They lower the prices during off-peak seasons because of decreased demand.

• Terminal costs: when terminal costs rise due to congestion issues, carriers tend to increase their rates.

Which Payments Methods do Carriers Accept for Freight Charges?

Some of the payment methods that carriers use for freight charges include:

• Wiring money straight from the shipper through an international transfer.
• Opening an account and making a local transaction.
• Use of Alipay or Alibaba Trade Assurance.
• Transfer of funds through western union.
• Use of pay pal.

What is the Difference Between Courier and Carrier?

Courier services are used in the transportation of small shipments while carriers are mainly used in moving large shipments from one point to another.

Courier service is used in shipments of between one and 15 boxes depending on the location, weight and volume.

Carriers, on the other hand, are used to ship any cargo which exceeds 150 lbs.

Courier services use door to door method of delivering cargo to individuals.

Due to their large shipments, carriers need larger trucks with specialized equipment and loading and unloading sites.

Carriers do not deliver cargo as quickly as courier services, but they are the most economical and help cut costs.

Do Freight Carriers Provide Insurance during Shipping?

Not all freight carriers provide cargo insurance when shipping goods.

However, you must select a carrier who gives cargo insurance to ensure that your goods are protected from loss or damage.

Insurance will ensure that goods are safe when stored, when in transit up to the final destination.

Are Carriers Liable for Damaged, Lost or Stolen Goods During Shipping?

Carriers may or may not be liable for damaged, lost or stolen goods during transportation depending on carriage contract.

These types of contracts include:

• Contract of carriage at the owner’s risk: under this, the carrier will not be liable for the goods damaged, lost or stolen during shipping.

The only exception will be in case the loss or damage was caused by the carrier intentionally.

• Contract declared value risk: in this, the carrier will be liable for the goods damaged, lost or stolen during shipping up to an amount stated in the contract.
• The contract for limited carrier’s risk: the carrier’s liability for goods lost, damaged or stolen will be up to a certain amount.
• Contract on declared terms: the liability of the carrier for goods stolen, lost or damaged during shipping will be according to a specified term in the contract.

In the case there is no contract between the shipper and the carrier, then the default solution will be a contract having a limited risk on the carrier.

What is Carrier Compliance?

Carrier compliance is whereby a carrier meets the required legal requirements of operation and possesses the right level of insurance.

This will ensure that their customers are protected from any financial harm and are safe to work with professional drivers and dispatchers.

Shippers have a critical concern to ensure that the carrier meets compliance requirements to avoid:

• Financial repercussions.
• Delays in fulfillment of orders.
• Out of stock warehouses
• Perished freight
• Damaged freight.

Some of the benefits of carrier compliance include;

• Ensures a quality partnership between a carrier and a shipper and eliminates elements of unwanted distrust.
• Protects the assets of a company.
• Maintains the image of a company.
• Lowers the costs of a shipper’s company while at the same time offering guaranteed quality.
• Creates a safe environment for shipping.
• Builds enhanced visibility on all the information and data required.

What is the Relationship BetweenFreight Carriers and Freight Brokers?

Freight carriers refer to an individual or business which runs a fleet of trucks and transports your goods from one point to another.

These carriers have ownership of the trucks, and they make payments to drivers and take care of scheduling and dispatch.

In the areas that they operate, fright carriers tend to possess coverage; thus, it is possible to track progress.

In case of any issues during shipment of cargo, they are addressed through the freight carriers.

On the other hand, Freight brokers do not possess any equipment for shipping and do not operate trucks.

They also do not have coverage in the areas they operate, and mostly they serve as brokers for the freight carriers.

The freight broker’s main job is to link up freight carriers with shipments because they are well-versed.

They are well aware of the routes, terminals, and areas of coverage and thus assist in faster cargo movement between points.

They assist carriers in dealing with tracking shipment issues and customer service issues that may arise during goods transportation.

Freight carriers are more appropriate when making a single shipment with a single drop point and fill up the vessel space.

In case you have multiple shipments, which do not c=occupy the entire space, then a freight broker comes in handy.

Before choosing a carrier, it is important to ensure that your cargo is well packed and ready to be transported.

Do Freight Carriers Provide Tracking Services?

Yes, freight carriers do provide tracking services, and this grants a sense of assurance to both the carrier and the shipper of safe and timely arrival of cargo.

Technology improvement is easier and accurate to track shipments using even your computer or phone.

Some companies who do shipping tend to use other different methods of tracking like:

• Bill of lading.
• Progressive Number.
• Shipment number.
• Purchase order number.
• Shipment reference number.

Some of the benefits of freight shipment tracking include:

• Reduction of customer anxiety.
• Gives delivery information.
• Increases transparency.
• Decreases customer service demands and costs.
• It assists in the easier location of a lost package.

How do Carriers Classify Freight During Shipping?

The main purpose of carriers classifying freight is to determine fair means to use to standardize freight pricing.

Freight classification is determined by several factors which include:

• The ease of handling the goods or whether special equipment is needed.
• Liability associated with the cargo putting into consideration how hazardous or valuable the cargo is.
• The fright’s density.
• Storability of the cargo; the ease of storing the goods and maintain them in good condition during transportation.

When selecting a carrier, it is very important to choose one that is well aware of freight classifications.

This is because the changes in classification can be expensive.

The shipping company should assist you in the quick determination of the classification of your freight.

Many organizations use freight calculators to answer the classification and the cost to be paid.

The major determinant of freight classification is density, which refers to the weight of a good for a given volume.

In the United States, freight companies establish the freight’s class by measuring its density in pounds per cubic foot.

Freight that weighs less than a pound per cubic foot is classified under 400 class freight.

That which weighs less than two pounds per cubic foot is classified under 300 class freight.

The number of the freight’s class tends to drop as the density increases.

For those goods which weigh above thirty pounds per cubic foot, the class of freight is sixty.

Do all Carriers Ship Hazardous Material?

No, not all carrier is willing to ship hazardous materials.

Besides, some carriers may completely refuse to transport cargo which is not on the official list, which they believe may pose a danger in their operational activities.

Therefore, it is essential to know whether the carrier company ships hazardous material or not depending on what you want to transport.

Some carriers ship hazardous materials, but it is important to have all the governing bodies’ approval materials.

This sill also makes the carrier aware of the types of hazardous materials you want to move and the preventive measures required.

Types of hazardous materials include:

• Poisonous gas.
• Explosives.
• Radioactive materials.

What is Carrier Selection?

Carrier selection is the process of having multiple carriers choose from to lower your products’ shipping costs.

The main reasons why you require carriers to choose from include:

• Consumers always demand more options and choices as they are not satisfied with standard shipping nowadays.
• The sizes and delivery requirements of e-commerce may vary.
• Different carriers tend to offer different levels of service.
• More carriers bring about more rates which are competitive.
• Carriers may not provide open-ended services.
• Interlining is very important to e-commerce globalization.
• Availability and increment in shipping lanes.

At Tj chinafreight, we offer custom shipping solution from China.

From booking spaces in ships, warehousing, transportation to custom clearance – we will make the entire shipping process easy and simple.

Contact us today for all your shipping needs.

This guide explores all the vital aspects you need to know about container freight station fee.

So, before you seek for services in a CFS facility, read this guide.

Let’s dive right in.

What is CFS Fee?

A Container Freight Station fee refers to an amount of money charged for loading, unloading as well as packaging services at a warehouse.

This charge mostly applies to LCL shipments.

Once your LCL shipment arrives at the port, it is transported to a container freight station where unloading takes place.

Each cargo from different importers is separated from the rest and loaded into a truck.

Thereafter, the truck transports the goods to the warehouse.

The fee charged for this service will vary depending on the number of goods or the weight of goods. The more goods you have the higher the CFS fee.

However, sometimes the fee remains similar for specific categories of goods.

What are CFS Fees Used For?

CFS fees are applied to cater to the services offered in a container freight station. Such services are not limited to;

• Consolidation of goods in the port of origin – This involves combining different shipments from different importers to one container.
• Deconsolidation of goods in the port of destination –Disintegrating shipments from different importers.
• Smooth transportation of your container.
• Storage of the goods.

Which Activities Attract CFS Fees?

CFS fees are one important aspect that any importer should be keen on following up on as it might result in additional costs.

Generally, the CFS fee is charged to cater to the preparation activities conducted in the freight station for your goods before or after being shipped to the destination port.

Some of the activities that will attract CFS fee are not limited to;

• Shipping container loading and unloading
• Storage of goods
• Daily Floor space rent for containers
• Container inspection. It includes scanning the container to confirm that the cargo is the declared one.
• Handling of your goods when passing through customs.
• Movement of your goods from the container freight station.
• In case a container is damaged your cargo will need to be shifted to another container. This will in turn attract CFS fees.
• Any amendment on documents will attract a CFS fee.
• Before the containers are loaded on a vessel, they are weighed to confirm that they meet the required weight. This attracts a CFS fee.
• Sweeping the container.
• Sometimes, vessels are used to load and unload containers, and when such vessels are used CFS fee applies.
• Repairing the container.

How is CFS Fee Calculated?

The CFS charges are determined by several factors one of the main being the quantity of the cargo.

CFS fee varies from one country or region to the other and therefore you shouldn’t expect a standard amount to be charged.

Normally, CFS charges will be calculated based on the type of container used in transportation.

For instance, containers that are more than 40ft, the fees will be 200% of the 20ft container fees.

For the same size of the container, the ground charges will be 300% of the 20ft container fees.

Which factors Determine the CFS Fee?

The fees charged for Container freight stations will vary depending on several factors such as;

• Quantity of goods being shipped. The more the cargo the higher the CFS fee.
• Seasons – Shipping during high seasons will shoot up CFS fees as the services are in higher demand.

November and December are considered high seasons.

This is the period in which most businesses restock in preparation for the holiday seasons.

You should also take note of Chinese holidays which normally happen around January and February.

The weeks before this occasion are considered high seasons and therefore you are bound to pay a higher CFS fee owing to higher demands.

• Government regulations – CFS fees vary from one country to the other owing to different government regulations enacted.
• The type of shipping container used in the transportation process. Some products such as perishables will require special containers and this, in turn, raises the CFS fee.
• Type of goods being shipped – Some goods are perishable and will require special handling.

As such, the use of containers with refrigerators also applies and all this will shoot the CFS fee higher.

How Does CFS Fee Affect International Shipping?

When shipping using LCL, you need to be very knowledgeable when it comes to understanding CFS charges.

Failure to this might result in you incurring extra charges.

CFS fee caters to the services offered once your goods are loaded into the ship.

Sometimes, the customs authorities might choose to collaborate with the customs officials in the destination country.

The main reason being to charge the same fee for both countries.

However, it is rare for this to happen.

As a business owner or importer, it’s important to take into account what CFS entails before commencing your shipping procedure.

That said, CFS can have some effects on your international shipping in the following ways;

• Causing delays – Failure to discuss the costs before shipping begins might result in delays.

It’s always advisable to ensure that all requirements and agreements are met before commencing your shipping process.

• More costs incurred – This happens more so when dealing with logistics.

Working with a qualified logistics company will save you the agony of incurring extra costs.

• Failing to reach an agreement on desirable prices for both the exporter/importer and the customs officials leads to poor relationships.

Working with the appropriate logistics company will not only ease the negotiation but also allow you to continue with your daily business activities.

Logistics Company will carry out all the processes on your behalf.

Who Pays CFS Fee?

The importer or exporter is responsible for settling fee payments for the container freight station.

Can you Negotiate CFS Fees?

Yes, you can negotiate the CFS fees.

However, you need to do this on time to avoid any delays.

Negotiating process can be quite challenging and therefore most importers chose to work with freight forwarders.

Freight forwarders come in very handy more so if you are not well oriented with matters regarding customs clearance.

In addition to that, it relieves the stress associated with it and you are left to continue with your daily routines without any worries.

Can you Delay Paying CFS Fees?

Yes, payment of CFS fees can be delayed owing to several reasons.

Nevertheless, you need to keep in mind that this might attract additional charges otherwise referred to as demurrage.

Normally, the officials have a specified period to allow importers to complete all the necessary customs clearance processes.

Once this time lapses, the importer will be required to pay demurrage to the concerned officials.

How can CFS Fees Impact You?

CFS fees can hugely cause an impact not only on you but also on your business.

Think of it this way, a misunderstanding emerges regarding the CFS fees.

In the middle of all these, delays follow and as a result, additional costs are incurred.

As if that’s not enough, such a situation will negatively impact your business in a manner that you won’t be able to make decisions or run your business effectively.

Not forgetting that this might also diminish your relationships with customs officials.

To avoid all this, you can choose to work with a freight forwarder or ensure that you are very knowledgeable on the customs operations before commencing your shipping process.

What is the Difference Between CFS Fee and VGM Fee?

Verified Gross Mass(VGM) fee not only refers to the weight of the goods and bracing but also the weight of the empty containers.

This includes all the equipment used to position the cargo in place.

On the other hand, the Container Freight Station fee is an amount of money charged on service provision at the warehouse as goods undergo clearance, consolidation, and deconsolidation.

Do CFS Operators Charge CFS Fees on Empty Containers?

Yes, they do. CFS fee is imposed on empty containers too to cater for services such as the ground charges.

Is CFS Fee for LCL Shipments and FCL Shipments the Same?

FCL shipment doesn’t need a CFS fee. Container freight station only serves LCL shipments and therefore the CFS fee for FCL won’t be applicable.

Generally, it’s always more expensive to ship via LCL as compared to FCL owing to the consolidation and deconsolidation tasks.

Do You Pay CFS Fees During the ‘Free Period’?

Yes, once you pay for CFS fee it covers the “free period”. After the expiry of the free period, you will be expected to pay demurrage.

This charge is meant to cater to the storage and re-marshaling.

What are the Payment Options for CFS Fee?

CFS fees can be paid through the various payment options used in freight payment. Some of these payment options are not limited to;

• Letters of credit – Letters of credit are considered one of the safest payment methods you could use during your shipping processes.

The importer’s and exporter’s banks are the ones taking care of payments and therefore both parties are well secured.

• Bill of exchange– A bill of exchange is used when doing cash against goods type of import.

The importer’s bank is responsible for making payments to the exporter.

• Cash in advance – As simple as this payment method might be, it poses risks to both the seller and buyer.

Therefore, using cash in advance would be ideal when dealing with a person that you know well.

• Cash against documents –In this payment option, the importer’s bank has all the control. Meaning, it can release shipment once the payment from the importer is received.

Why do you Need to pay Attention to CFS Fees?

Whether you are exporting or importing goods via LCL shipping, you need to be knowledgeable on what the CFS fee entails.

CFS fee is not a standard amount and thus you can either end up paying the required amount or more than you should.

Before paying the CFS fee, ensure that you understand what the fee covers and the repercussions that follow if you fail or delay paying it.

Delaying the payment will result in delays in your cargo.

This might in turn lead to additional charges once the “free time” expires.

Ensure that both parties involved have a clear understanding of the agreement to avoid any misunderstandings later.

Such are the causes of bad relationships of importers and exporters with the customs officials.

Rarely, the customs officials in the country of origin might choose to collaborate with custom officials in the destination country.

Upon doing this, they agree to charge an all-inclusive fee covering both countries.

Being informed on such practices is important in ensuring that you have adequate knowledge for the smooth running and decision-making of your business operations.

Why do CFS Facilities Charge Higher CFS Fees for Reefer and Hazardous cargo?

Reefer and hazardous cargo require special treatment as opposed to normal types of goods.

Such cargo will need refrigeration containers and dangerous goods containers respectively to prevent them from going bad.

In addition to that, proper handling of hazardous materials is important as they might cause harm.

Owing to this, the amount of CFS charged is normally higher on reefer and hazardous cargo.

What Additional Charges do CFS Facilities Charged on Top of the CF Fee?

Apart from the CFS fee,  CFS facilities impose the following additional charges that you should be aware of;

• Container repairs charges
• Port entry
• Amendments/ adjustments in documents
• Lashing, chocking, and dunnage to secure the cargo
• Transportation into and out of the CFS port.
• Moving cargo from damaged containers to better containers(reworking).
• Sweeping of the container
• Labour for consolidating and deconsolidating the goods.
• Reefer handling
• Shifting cargo with CFS
• Authentication of the weight of the packed container before being loaded into the ship.

Is CFS Fee the same for all Types of Containers?

No, it’s not.

CFS fee varies from one container to the other depending on the size of the container.

The following are the size of different containers; 10-foot, 20-foot, 45-foot, and 40-foot.

The commonly used ones are 20 and 40-foot containers.

Keep in mind that the fee charge will also vary from one country to the other and thus you need to confirm with your local authorities.

Can Cargo be Released from CFS Before Payment of the CFS Fee?

No, it cannot.

You need to clear your CFS fee before your cargo is released from the container freight station.

Failure to do so will not only result in delays but also a poor relationship with customs officials which might affect your future shipment.

Can you Pay CFS Fees online?

Yes. CFS fees can be paid online depending on the agreement you have with the customs officials.

What is a CTF Fee?

CTF fee otherwise referred to as Clean Truck Fee was initially started in Angeles and long beach ports to curb pollution of air.

It regulated the entrance of trucks that caused pollution in the port and allow the entrance of “clean trucks” which reduced pollution in L.A port.

To achieve this, new trucks had to be bought, and therefore to recover the money spent on the new trucks a clean truck fee was introduced.

Is CTF Fee Charged as Part of the CFS Fee?

No, it is not.

CTF fee is charged separately from the CFS fee.

CTF fee is normally charged after all cargo has been claimed.

How Can you Reduce CFS Fees?

There are several ways you can implement to reduce the costs associated with CFS fees.

Some f these ways are not limited to;

• Working with a freight forwarder –Instead of going through all the tiresome procedures which might not only end up being costly but also exhausting.

Working with a freight forwarder is an ideal option.

Freight forwarders already have the know-how on CFS procedures not forgetting that they are well connected.

As such, they can easily take care of your shipping as you continue with your daily routines without worries.

• Be well informed about CFS fees before indulging in them.

Lack of knowledge on how CFS fees work might result in you incurring more costs than usual.

• Don’t classify your shipment as urgent. Urgent shipment tends to attract more charges as opposed to the others.

Plan early to avoid rush hours which might highly shoot your costs up.

• Ship your cargo during low seasons. Before you begin your shipping, do proper research and analyze the best time to ship your cargo.

During the year, there are low and high seasons.

Low seasons have decreased activities in the container freight station and therefore the fees are normally lower than usual.

This would be the appropriate time for you to ship your cargo.

• Shipping hazardous and perishable items increase the CFS fees.

This is because such cargo will need special containers such as refrigeration containers as well as careful handling.

If you are looking forward to starting a business you need to consider such factors and gauge if it will be reasonable for you in the long run.

I am not implying that dealing with such goods is a bad idea but you need to make wise decisions before starting to avoid quitting later after things get hard.

However, dealing with such cargo might also turn to be a lucrative business.

In short, you should consider everything in this guide when choosing a container freight station.

They will help you determine the container freight station fee.

For any questions or inquiries, contact Tj chinafreight team now.

If you would like to learn the ropes of Shipping from Italy to US, read this guide.

It tells you how to ship goods you source from Italy to US hassle-free.

Here, you may find clues to choose the cheapest and fastest shipping methods, cut costs for your business, and much more.

Top Products Shipping from Italy to US

Italy offers a rich and diverse marketplace, providing a wide range of fascinating products.

The country has maintained a reputation for top-quality products and has become a popular market for the US.

According to statistics, in 2019, USA’s top imports from Italy were vehicles, pharmaceutical products, wine, machinery, and electronics. The same goes for 2020.

Here are some of Italy’s most common products that you may import for your business in the US.

· Vehicles

Italy is known for its luxurious vehicles.

They’re fast, sporty, and, well, pretty high-end.

With the US’s knack for quality, vehicles from Italy make a hot commodity in some of the US top vehicle yards.

In 2019 alone, the US imported over $4.6 billion worth of vehicles from Italy.

This only shows how popular Italian vehicle brands have developed a liking across the US.

If you’re considering shipping vehicles from Italy, popular brands such as Lamborghini, Ferrari, Fiat, Alfa, and Romeo are a sure place to start.

· Pharmaceutical Products

You should know that Italy is Europe’s largest producer of medicines and pharmaceutical products.

For these reasons, it is among the US’s top marketplaces for pharmaceutical products.

In 2019, the US imported well over $8 billion worth of pharmaceuticals from Italy, the 2^nd largest US’s imports that Year by monetary value.

With Italy’s skilled workforce and machinery, the country’s pharmaceutical industry guarantees quality product production.

You can import nearly any kind of pharmaceuticals from Italy as long as it is within the confines of the US’s quality and safety standards.

· Machinery

Italy boasts of having some of the best machinery in the world.

Companies such as Pietro Carnaghi, Jobs S.P.A, and the Sacmi group offer an array of machinery.

You can import machinery of any kind from Italy, ranging from packaging, grinding, and processing machinery to the US.

With many other countries heading to Italy for machinery, you can seize the opportunity before the market is flooded.

· Electricals

On average, each household in the US has an electronic appliance in use.

This shows how electronic products are essential and have an equally high demand.

You can import electronic products from Italy either for resell or for personal use.

Electronics from major suppliers such as the AMARC Srl, Tasker, and others are pretty popular among US customers.

· Wine

In the U.S., imported wines are many, but the ones that are from Europe – the land of fine wines.

While European wine has been a favorite of the crowds for a long time, Italian wine, in particular, has been gaining fame at a steady pace.

Wine from Italy is highly praised by food and wine connoisseurs and loved by drinkers all over the US.

Italia wine is well known for its distinctive flavor and taste relished by the regulars of many US wine stores.

Other products you can ship from Italy include food and spices, electrical products, optical, photo, and technical apparatus.

How to choose your Supplier in Italy

The most important part of a successful shipping process is having a good supplier.

And when Shipping from Italy to US, it is vital to have a good relationship with the supplier.

It is more of a standard requirement as Italians, like Chinese, value relationships a lot, whether personal or business.

This is vital if you intend to develop stable business relations for your import from Italy to US business.

With that in mind, there are many ways of finding a good supplier in Italy.

You can rely on your connections for recommendations or search online.

Physically visiting Italy and getting to know your supplier is also another option.

This may not only land you a good supplier but also help you establish the much-needed trust in Italian business relationships.

Note that an ideal supplier in Italy should:

• Be able to provide quality products
• Have flexible payment terms
• Supply you with any quantity of product
• Have prompt turnaround time
• Genuine prices that give you impressive profit margins

Sea Freight from Italy to US

You have three options in shipping your goods from Italy to US.

When you choose which method to use, consider the total volume and weight of your shipment.

The first method of shipping your goods is through Sea freight which advisable if you’re shipping large volumes of goods.

However, sea shipments take a considerable amount of it, at least several weeks to reach the destination port.

Ocean shipping also has additional costs like customs clearance and inland transportation to your distribution center.

Then there are the documents that you have to process in the port of origin and destination.

You can spare yourself the hassle of preparing the paperwork by hiring a 3^rd party agent with custom broker capabilities.

The agent also has to have extensive experience with the port of origin and destination you’re working with.

· Advantages of Sea Shipping

The advantages of sea shipping are many. They include:

• Economical– You cannot mention ocean shipping without talking about how it saves on budget. Compared to other modes of transport over long distances, ocean freight rates are estimated to be four to six times lower.
• Efficiency– Regardless of your cargo’s size, shape, or weight, ocean freight covers you. With LCL availability, FCL, and bulk cargo, you can ship all types of products.
• Safety- Certain types of materials that included Hazmat goods cannot be transported by other means of transport. Nevertheless, ships are designed to ensure safety and offer you safer shipping for all kinds of goods.
• Environmental friendliness- Unlike other transport means, ships provide the most efficient form of carbon transport.

Sea Ports for Shipping from Italy to US

Some top and busy seaports to consider when importing from Italy to US are:

· Port of Napoli

The port of Napoli is among the largest ports in Italy.

It is also one of the largest ports serving the Mediterranean region.

This, therefore, shows how busy and established the port is.

The port has many sufficient terminals that are well equipped for container handling.

With the large docks and storage, this port can suit your needs if you import larger cargo volumes.

· Port of Cagliari

This port has a large capacity of around fifty-five million tons, which adds to the list of large ports in the Mediterranean region.

This port prides itself in handling bulk cargoes, general cargo, and container goods with a large capacity.

· Port of Genoa

Genoa’s port is the busiest in Italy and covers 1,250 acres of water and over 1,700 acres of land.

With a capacity of over 57million tons per year, this port can handle any type of cargo.

· Port of La Spezia

The port of La Spezia is known for its specialization in handling containers.

It has high-end technologies and equipment to ensure smooth and fast handling of cargo.

This port can serve your needs if you are importing from inland parts of Italy because it gives you direct shipping.

Additionally, your receiving port in the US has an impact in determining the process of customs clearance, offloading and safe storage of your cargo.

The major ports in the US you can use to receive your cargo from Italy include:

• Port of Los Angeles
• Port of savannah
• Port of Seattle
• Port of long beach
• Port of New York

Airfreight from Italy to US

Airfreight is the second method you can consider for shipping your orders from Italy to US.

It is advantageous if you need products to be shipped to you in a short time.

Compared to sea freight, air freight is more considerable if your order is low volume, low weight, and value.

There is also a lot of Italy to US Air shipping service providers that you can choose from.

· Advantages of Airfreight

Like every other form of transport, Airfreight offers several benefits.

These are:

• Fast shipping – When your customers are on your neck and need delivery as soon as possible, you can use air freight.
• High reliability in terms of arrival and departure time – When it comes to scheduling operations, Airfreight offers the best.

The flights are scheduled, and once you book a space, you are confident of receiving your goods at the exact date and time unless otherwise communicated.

• Easy tracking of cargo – The use of mobile apps and online tracking systems within the aviation industry allows you to monitor your products from departure to arrival.
• Less need for warehousing – When you are using Airfreight to deliver your goods from Italy to the US, the need to warehouse your products is reduced. You can order your goods and receive them as early as two days depending on the Airfreight service you choose.

· Airport Guide when Shipping from Italy to US

When it comes to airport choice, you should consider several things.

These include how busy the airport is, its efficiency, and the number of flights operating within the transport route.

The major airports in Italy you can use to transport your goods to the US include:

• Leonardo da Vinci Fiumicino airport in Rome
• Malpensa Airport in Milan
• Venice Marco polo in Venice
• Orio al Serio in Bergamo

Before choosing an airport to use in Italy, it would also help to factor in its proximity to your supplier and flights’ availability.

When choosing an airport in the US, you should note that certain airports are specific to passenger handling.

Thus their efficiency in handling cargo may not suit your needs.

Moreover, it would be best if you chose the closest airport to where you want your goods.

Some of the major cargo airports you can use to deliver your cargo from Italy to US include:

• Los Angeles International Airport, California
• JFK International Airport, New York
• Indianapolis International Airport, Indiana
• Dallas/Fort Worth International Airport, Texas

Express Shipping from Italy to US

Express shipping is a type of expedited shipping.

It means that once the cargo reaches the shipping terminal, it must be delivered 2-3 business days.

· How Express Shipping Works

Express shipping takes place by air freight, and the emphasis is on ensuring that goods are delivered as fast as possible.

In this, shippers must book shipping space during the day.

This allows the shipping company to schedule the shipment for transportation overnight or the next day, whichever is suitable.

Express shipping is advised for very small and light packages, usually below 500kgs, as anything more than that maybe a tad too costly.

·  Benefits of Express Shipping

Express shipping provides several benefits, especially if you’re shipping goods from different suppliers in Italy.

• You get to receive your orders fast. – One of the major benefits of express shipping is that you receive your products more quickly. This way, your customers don’t have to wait longer for their orders.
• Satisfaction is guaranteed – When importing goods, you want to receive them in the best condition possible. Express shipping ensures safe delivery due to the minimal handling and speedy delivery time.
• Fewer inventories in the store – Express shipping has made it easy to directly get your products from a supplier and fulfill a customer’s order without keeping long inventories.

· Express Shipping vs. Standard Air Freight from Italy to US

The main difference between express shipping and standard Shipping from Italy to US is the delivery time.

Express shipping can deliver your products from Italy to the US on the same day.

In terms of shipping costs, standard shipping offers cost-effective shipping because no special provision is given to the product.

Because express air freight utilizes air couriers, its rates are high.

Also, on average express air freight takes from 1-3 days for products to ship.

On the other hand, with standard shipping, products take between 2-8 days to ship.

Most important is to note that standard air freight allows you to ship more volume and weight.

Express shipping is cost-effective for packages weighing 500kgs and below.

· Popular Express Shipping Companies from Italy to US

Many companies offer express shipping services from Italy to US.

The most popular of these companies are:

• Dwarka courier
• DHL
• FedEx
• UPS
• DB Schenker

These companies are all at the top of their game.

They provide top-quality express shipping services with a safety guarantee like no other.

The companies have also invested in quality and fast-tracking systems, which allow for easy monitoring of shipments.

Shipping Container from Italy to US

Shipping container involves leasing a container to carry your products from Italy to the US.

It can also imply booking container space and having your products shipped alongside other importers in the same container.

· Container Shipping Options

Container shipping is mainly identified by the type of shipping container you choose to use.

Depending on the type of goods you’re shipping, there two main types of containers to consider.

These are:

• Dry van containers – these are the typical metal containers. They are a common and versatile option widely preferred for shipping dry cargo.

These containers have a very sturdy structure.

They are watertight and weatherproof, making them safe for shipping over long distances.

Dry Van containers come in standard 20ft, 40ft, and 45ft sizes.

• Reefer Containers – These are also known as refrigerated containers. They comprise an outer metal construction and a delicately refrigerated interior.

These types of containers are used to ship perishable goods and any other that require refrigerated conditions.

· FCL vs. LCL Shipment

Apart from the options above, container shipping can be done in two ways: Full container load (FCL) Shipping or Less than Container Load (LCL) shipping.

Your choice between FCL and LCL shipping will depend mainly on your shipment volume and your budget.

With FCL shipment, you’re renting out an entire container for a single shipment. Only your goods are shipped in an FCL container booking.

FCL is effective if:

• You need your products delivered from Italy to the US on a specific date.
• You have enough products to occupy a whole container
• You are shipping delicate or high-value cargo
• You value the safety of your products and want them sealed for the entire journey

The Less Than Container Load (LCL) shipping is applicable when your products’ quantity is less and cannot fit a container.

In this case, you don’t hire the whole container but instead pay for your products’ space.

You can consider the LCL shipment  option when:

• Delivery time is not an issue
• The nature of your cargo allows sharing of a container.
• When the quantities of goods you are Shipping from Italy to US is less.
• Airfreight is not a viable option.
• You don’t want to spend extra cash on hiring a container.

Though cheap when shipping fewer goods, LCL means that other shippers’ products are consolidated in the same container.

Once they are delivered in the US, they are de-consolidated.

This means that there is a time lag before you receive your products instead ofthe FCL shipping option.

· Benefits of Container Shipping

Container shipping is widely adapted for shipping all types of products.

It offers many benefits to the shipper, which include;

• It is a secure method of shipping since it protects the goods. After selecting the products in Italy, you only break the seal on receiving them in the US.
• In a way, container shipping offers a fast means of transport at a lower cost.

The whole unit in the container is documented, and there is no need to pass every product through customs.

• Container shipping is dynamic, which means that it accepts all goods, whether large, small, dangerous, or even in batches.

Though beneficial, container shipping also has certain disadvantages that limit their usage by some shippers.

For example, if your product is irregular in shape and too large, you are limited from using a container for shipping.

Additionally, some containers may lack proper ventilation, leading to damage of certain products when Shipping from Italy to US.

· Cost of Container Shipping from Italy to US

Several factors determine the cost of shipping containers from Italy to the US.

These factors are the shipping company, the container’s size, the departure port in Italy, and the US’s arrival port.

You can use either a 20FT shipping container, 40Ft, or 45ft high cube container, depending on your product’s quantity and size.

On average, for a 20 Ft container, you will incur from $ 6,000- $7,000 depending on the mentioned factors.

On the other hand, you will incur from $12,000-$ 13,000 on a 40ft container.

High cube containers cost a little more, from $13000-$20000 depending on the carrier.

Shipping from Italy to US Customs Rules and Regulations

Like any other country, custom rules and regulations are vital.

They play a massive role in ensuring all importers abide by the set safety rules, pay custom fees, and only import allowed products.

· Shipping Requirements from Italy to US

Before settling on shipping as an option to serve your business need, you should consider looking at all the exporting and importing country requirements.

The USA is strict when it comes to importation, and all products entering the country must meet set standards, which can vary from product to product.

For instance, if you are importing steel, you first must acquire a steel license that you should apply for 60 days before the importation.

Other essential shipping requirements include;

• Import declaration – US customs require all importers to create a packing list of the goods they are bringing into the US. This ensures that you declare everything you’re importing.
• Power of Attorney-allows the transfer of liability from Customs and Border Patrol (CBP) to you, the importer.

· Prohibitions and Restrictions on Goods Shipped from Italy to US

When importing to the US, you should note that CBP officials may physically open and inspect your shipment.

Hence, you ought to know precisely what the US prohibits and restricts importation.

Remember, when your shipment contains prohibited or restricted products, customs will confiscate the cargo.

Also, you may face disciplinary action in terms of jail time, fines, or hefty penalties.

The following products are restricted for import into the US:

• Certain alcoholic beverages – you must first provide an International Special Commodities (ISC) contract to be allowed to ship them.

Additionally, you must get permission from CBP, US Food and Drug Administration (FDA), Alcohol and Tobacco Tax, and Trade Bureau (TTB) to be allowed to ship.

• Batteries – All batteries imported to the US must be shipped with positive short-circuit protection, including insulating caps.
• Electronic cigarette /vaping product – You can only ship this with a special ISC contract.
• Jewelry – Shipping of Jewelry is only allowed for a value worth less than $200.
• Seeds –You can only import seeds if you have a United States Department of Agriculture Plant Protection and Quarantine permit.

Other products are prohibited from importing to US, and you can verify with the CBP before shipping.

These products include:

• Narcotics and medicines containing prohibited substances
• Trademarked goods which are considered to be counterfeits
• Weapons and firearms (fully automatic and semi-automatic)
• Absinthe which is not thujone free
• Soil, livestock, and animal pests
• Pornographic materials

Checking with CBP for special requirements on your intended products can help save you.

Product Quality and Safety Regulations when Shipping from Italy to US

Different products shipped from Italy to the US must meet set product quality and safety standards.

Failure to which, Customs may refuse the shipment’s entry into the US on account ofcompliance breach.

Here are some regulatory requirements to consider when importing from Italy to US.

• Country of Origin mark – the C/O label is mandatory for all products imported into the US.

There is no other way around it unless you buy parts and assembled them in the US.

Then you can label them as “made in the USA.”

Otherwise, it is not allowed for foreign manufactured products.

• Textiles and Apparel – all textile and apparel products you import from Italy to US must comply fully with OTEXA textile standards.

The textiles must also have a country of origin label.

When you import textiles from Italy, make sure to provide your supplier with a digital of the OTEXA requirements.

This will help them manufacture, package, and label your products as per the requisite standards.

• Children’s products– these must comply with CPSIA and have a Children’s products Certificate (CPC).

According to CPSIA requirements, you need to ensure that all children’s products you import meet the applicable safety standards such as ASTM F983.

You should also submit samples of the products to a CPSIA accredited lab for testing, for which you will get a CP certificate.

The label should also extend to the packaging.

That is not all; CPSIA requires that you affix a permanent tracking label on each product you import into the US.

If you fail to comply with any of these requirements, US customs may seize your products.

CPSIA may also recall the products at some.

Fail to comply with one of these, and US customs can confiscate your product.

• Electronic products– the FCC regulates electronics products distributed in the United States.

It mandates all electronics imported into the country to comply with its regulations and contain an FCC mark.

There are also other standards, although voluntary that electronic imports to the US should comply with.

Examples are the UL (Underwriter Laboratories) requirements.

• Pharmaceuticals and food products– medicines, food products, and kitchen appliances must meet FDA quality and safety standards.

Please note that there are no mandatory standards areregulating every aspect of all products you import to the US.

Be that as it may, all product imports to the US must be safe.

That is, even if there are no specific standards that apply.

If your products are, for any reason, found to be unsafe, the CPSC and other regulatory agencies have the right to issue a recall.

Meaning, you’ll have to order customers to return the products and refund them.

Of course, you will not be compensated for your loss by the government or supplier.

How much it Costs to Ship from Italy to US

The cost of shipping goods from Italy to US is not cast in stone.

Certain factors determine the final shipping cost.

To calculate the shipping cost from Italy to the US, you must first factor in shipping mode.

Depending on the mode you choose, your sea freight costs will be lower than the air freight and express shipping modes.

However, the actual shipping costs vary from one port to the other and with your shipping company.

Fortunately, many shipping companies provide cost calculators that can help you determine the shipping cost.

· Factors that Determine the Cost of Shipping from Italy to US

As I have said, many factors influence the cost of shipping goods from Italy to US.

These are:

• Nature of goods – The complex handling of your goods, and the more space they occupy, the higher your shipping cost will be.

For example, bulk cargo and reefer freight cost more to ship compared to normal shipment.

• The chosen mode of transport (FCL, LCL, and Air) – In terms of transport mode, air transport will attract higher shipping costs, followed by FCL and LCL.
• Weight of the cargo – Depending on the mode of transport, weight can significantly affect shipping costs.

In Airfreight, the greater the weight, the higher the shipping cost.

This, however, is not the case in sea shipping as weight and volume are all essential in determining freight rates.

• The cargo dimension – Cargo with larger dimensions occupies more space and hence attracts a higher cost of shipping.
• Distance between origin and destination – The longer the distance covered during shipping, the higher the shipping costs.
• Type of service – If you are looking for convenience by having your products delivered to your door (The Door-to-door method), you will incur higher shipping costs. Port-to-port delivery is significantly cheaper.

How to Reduce your Shipping Cost from Italy to US

To reduce your shipping costs from Italy to US, consider the following tips.

· Have all the Required Documents

Documentation is an important aspect when Shipping from Italy to US.

You should get everything right to avoid extra expenses.

· Book Early

Many importers are venturing into the Italian market, which means that many ports and vessels are busy, leading to an upsurge in shipping costs.

Booking in advance can help you save costs and reduce delays, especially when you intend to ship during peak seasons.

· Comparing Prices of Different Shipping Companies

The first shipping company with prices seeming moderate does not mean they are the best.

You can compare the prices of different shipping companies before settling on one.

How Long it Takes to Ship Cargo from Italy to US

Shipping time from Italy to US depends highly on the shipping mode you use.

· Airfreight Shipping Time

Airfreight offers a faster shipping option but is limited to only a given type of product.

The shipping time varies from one port to the other and can even last up to 6 days.

Some of the examples of transit time in major air freight routes between Italy and the United States are:

· Ocean Freight Shipping Time

Vessel speed also influences shipping time from Italy to US.

The shipping time is also influenced by shipping FCL or LCL, with FCL shipping time being shorter.

Some examples of shipping times include;

· Express Shipping Time

The express shipping time is the shortest and is determined by when packages are delivered to the booking station.

Express shipping will take 3-8 days to deliver goods from Italy to US.

· Factors Affecting Shipping Time from Italy to US

The main factors that affect shipping time from Italy to the US include;

• Distance– the longer the distance from the loading port in Italy to the US’s delivery port, the longer the delivery time.
• Processing time– your product must undergo fulfillment in several processing points, increasing the shipping time.
• Shippi
  

Information in this guide will help you compare vessel and ship.

It covers everything, from basic definition, features, and uses among other critical aspects about vessel and ship.

So, keep reading if you want to learn more.

What is a Vessel?

Generally, a water vessel widely refers to any watercraft that navigates the water bodies.

Therefore, according to this definition, a vessel would include all such machines, from boats to large ships.

Some users also appreciate a vessel as a craft used for water transportation and usually bigger or massive than a rowboat.

In addition to this, a vessel includes large boats and ships regardless of whether they are passenger or luggage types.

What is a Vessel’s Function?

Since the term “vessel” incorporates a wide variety of specific water automobiles, consequently, the vessels do have a wide range of functions as outlined below:

Passenger Transportation

Boats, large ships, ferries, etc., are efficient water transport modes for ferrying passengers/travelers across different water bordering places or venues.

These vessels would even transport passengers across countries and even continents.

Since time immemorial, even before world war I, colonialists used to ferry slaves from the African continent to the USA via large ships.

Moreover, engineers have greatly designed and developed modern large cruiser ships to transport passengers across various countries, borders, and cities to date.

Luggage Transportation

Also, vessels offer great flexibility and reliability in the transportation and delivery of goods across long distances especially cross country delivery.

Luggage transportation amongst countries and territories has been one of the most affordable transport modes for use by importers.

Volatile goods (crude oils), weaponry, clothes, house merchandise, electronics, containers, automobiles are just some of the typical goods often transported via vessels.

Extraction and Related Activities

Some vessels are significant in deep-sea mining and extraction activities in the ocean, seas, and lakes.

Specifically, dredging vessels are efficient at extracting sand and other marine deposits from the sea beds.

That form of activity is significant in enhancing the navigability of those specific areas.

Elsewhere, some other water vessels extract different types of minerals and valuable stones from the seabed.

Those precious minerals may include diamond, copper, gold, silver, zinc, cobalt, manganese, etc.

What is a Ship in Freight Terms?

A ship is an extensive water vessel that travels the oceans, seas, and deep waterways.

This type of water vessel moves while carrying either goods or passengers connecting continents, countries, etc.

In the modern maritime universe, the ships are significant in executing specialized missions, including mining, fishing, research, and defense.

However, in the olden sail age, a ship was renowned as a vessel with three or additional rigged masts.

Nevertheless, that definition does not hold since ships’ power generation has so far been developed to incorporate other energy forms rather than the sail and wind.

What is the Difference Between a Vessel and a Ship?

As we noted earlier, a vessel is a general terminology that includes the sea-going crafts, which effectively navigate the waterways.

Vessels exist in different varieties depending majorly on sizes.

Small to medium sized vessels include boats and barges, its counterpart is the ships that are the larger type of vessels.

Therefore, we can refer to a ship as a large ocean navigating vessel that may use wind, steam power, or even other modern energy sources.

Whereas a vessel blanketly refers to any watercraft that floats which you can easily steer on its own or by use of other sources of energy.

Most prevalently, ships transport cargo majorly to earn revenue or income to the owners.

What Size is a Ship?

Ships are by far one of the largest water vessels.

They are bulky and also expansive in dimensions.

Specifically, the ship’s size dimensions depend on a few factors, including the operational route and purpose of the ship.

Moreover, the ship sizes also largely depend on the expected load-carrying capacity.

Similarly, the ships’ variation in sizes also depends on the capacity of the various harbors and ports.

Consequently, the ships exist in various types depending on dimensions.

This varieties include Panamax (427 meters long), Chinamax (360 meters long), Handymax (200 meters long), amongst others.

Nevertheless, considering all factors, a ship should weigh a minimum of 500 tonnes; anything below that cutpoint can well be considered a boat.

How is Cargo Ship Classified?

A cargo ship is a water vessel that navigates the seas, oceans, and large water bodies while transporting bulky goods and luggage from one seaport to another.

The cargo ships, commonly referred to as freighters, are responsible for all the sea freight cargo.

These cargo ships maybe classified into multiple classes according to the load types they deal in.

Below are the most common types of cargo:

Based on the Type of Cargo and Purpose;

General cargo ships; this type is a general merchandise ship that carries a wide range of general loads.

They are akin to container ships even though they do not deal in containerization.

To smoothen their operations, this type of cargo ships have inbuilt cranes that enhance their loading and offloading operations at the port.

Container ships; these types do transport freight in different sizes of ISO standard shipping containers.

Therefore, these containers have automated gantry cranes to load, unload and pack the intermodal containers inside the ships.

Undoubtedly, container ships contribute to almost half of the entire international freight transport.

Besides, they are conventionally vast and expansive, with a luggage capacity of a maximum of 19,224 TEU.

Tankers

These are particular kinds of ships that transport liquids and gases in the marine world.

Every type is perfectly designed and tailored to transport specific types of liquids.

For instance, if you transport crude oil, then a specialized crude tanker would correctly do that.

Besides, the tankers have large capacities to handle a significant amount of liquids.

The crude carriers are further grouped into Very Large Crude Carriers (VLCC) or Ultra Large crude Carriers (ULCC).

Elsewhere, if you deal in liquefied natural gases, then LNG carriers would be handy.

Bulk Carrier Ships

Bulk carriers are simply ships that deal in the bulky commodity.

They are also known as a bulk freighter.

The bulk carriers may fall into the following two distinct groups:

Dry bulk carriers; this type carries and ferry unpackaged bulky cargo consisting of grains, ore, and sugar. Etc.

Break bulkcarriers deal with packaged luggage such as cement, fertilizer, chemicals, powder, or manufactured items. Etc.

Unlike the container ships, these bulk carriers have ramps, conveyor belts, or pumps to load and unload the goods instead of the cranes.

Multi-Purpose Ships

As their name suggests, the multi-purpose ships carry and deal in a wide variety of cargo – no specific good.

This means that a single carrier may transport bulky steel, sugar, wood, paper rolls, cement, construction materials, and others.

These ships are mainly versatile and applicable for multiple purposes.

Besides, they are the most preferred carrier for many companies.

Reefer Ships

Reefer ships are another particular type that only transport commodities that have to be stored at a controlled frozen or regulated temperature.

Such freight includes perishables, vegetable produce, fish, meat, medications, etc.

Therefore, if you deal with temperature-sensitive goods, reefer ships are the best.

Based on the Sizes

The dimensional considerations of the cargo ships are length, weight, and width.

These dimensions would, in turn, affect their capability to fit in canals, pass via different water depths, or transit below bridges.

Another vital dimension of the ship is the DWT (Deadweight tonnage).

It refers to how much cargo a ship can safely carry, excluding the ship’s actual weight.

Hence, cargo ships are classified as follows:

Handymax –Smaller than 60000 DWT.

Handysize; 15000 – 35000 DWT.

Supramax; 50000 – 60000 DWT.

Panamax; 65000 – 85000 DWT. Largest sized ship to pass through Panama canal. However, its maximum weight can only be about 52,500 tons.

New Panamax; 120000 DWT.

Aframax; 120000 DWT

Suezmax; 160,000 DWT, largest sized ship that passes through the Suez canal.

Malacamax; maximum of 300,000 DWT and the largest ship that can securely pass through the Strait of Malacca.

Seawaymax; this is the most giant-sized ship that securely fit through the canal locks of st. Lawrence seaway.

They exist between 10000 to 60000 DWT.

Capesize; 150000 to 400000 DWT and passes through the Cape of Good Hope and Cape Horn.

Very Large Crude Carrier (VLCC); between 150000 – 320000 DWT.

ULCC (Ultra Large crude carrier); between 320000 to 550000 DWT.

What is the Difference Between Container and Vessel?

A container is an expansive metallic hollow box mostly used for carrying merchandise, luggage, goods, or any commodities while transiting in the water amongst ports.

The containers are especially most prevalent for ferrying goods in water transport and carried by water vessels.

On the flip side, a vessel refers to any watercraft that moves in the water while transporting goods, passengers, or other particular purposes.

A vessel effectively carries containers to aid in the packaging and shipment of the various types of cargo.

What are the Parts of a Vessel?

A vessel has got several parts.

However, all the parts are categorically classified into three most significant and general sections; the hull, navigation bridge, and engine room.

Despite that, the following are the primary parts of a vessel:

• Accommodation
• Anchor
• Bow
• Bow thrusters
• Deck
• Deck crane
• Engine room
• Forecastle
• Funnel
• Freeboard
• Keel
• Propeller
• Navigation bridge
• Rudder
• Hull
• Mast

What is Shipping Vessel Meaning?

A shipping vessel is any watercraft that specializes in navigating through the waters while transporting cargo through ports and amongst countries.

Again, these kinds of vessels are fundamental in the trade industry, whether international or local trade.

What is a Mother Vessel?

A mother vessel is a giant-sized watercraft, usually larger than a feeder vessel.

And due to their enormous sizes, the mother vessel only plies significant ports.

Besides, they have extra sizes to accommodate and carry thousands of tons of cargo, including containers.

Consequently, the mother vessels move through longer distances while transporting cargo.

What is the Capacity of a Mother Vessel?

In terms of capacity, the mother vessels have an average capacity of about 10000 (TEUs).

Currently, some vessels have a capacity of a maximum 20,000 TEUs.

Apparently, with the rising level and improvement in manufacturing technology.

It is possible that some mother vessels would soon reach 25000 TEUs.

How Does a Mother Vessel Serve?

Due to their big sizes, mother vessels would reliably and efficiently serve similarly major/ big ports.

As such, these vessels would specifically traverse main ports.

What is a Feeder Vessel?

Feeder vessels are distinctively unique in two main perspectives.

Firstly, they are relatively smaller in size compared to the mother vessels.

Secondly, similar to its name, the feeder vessels are generally slow.

How Does a Feeder Vessel Serve?

As their name suggests, the feeder vessels ply both smaller and major ports.

They do so by interlinking the cargo from smaller ports to significant ports shipped by the mother vessels for export purposes.

Similarly, they also complete cargo shipping from the major ports to smaller ports in importation cases.

What is the Difference Between the Mother Vessel and the Feeder Vessel?

Mother and feeder vessels are two worlds apart.

The three aspects of their difference focus on size, function, and capacity.

Firstly, Whereas mother vessels are vast and large, the feeder vessels are relatively small in size.

Secondly, the feeder vessels navigate through both the primary and minor ports to interlink the cargo for trade.

Finally, the mother vessels have a great capacity to store cargo upto 20000 TEUs while feeder vessels have a smaller maximum of 500 TEUs.

What is the Difference Between Ship and Steamer?

A steamer is a water vessel that navigates through the large water bodies; however, this vessel solely depends upon steam for propulsion.

So, therefore, the difference between the ship and steamer lies in the driving power.

Diesel is the most common source of energy for ships, whereas steam for the steamer.

Also, a steamer has a chimney for releasing the by-products from the engine.

Better still, a steamer is a general term that refers to a wide variety of vessels including steamboats, or steamships.

Is an Aircraft Carrier a Ship or a Boat?

An aircraft carrier is a ship, at least according to the US Navy.

According to the US Navy, every kind of commissioned surface vessel is considered a ship, from the large aircraft carriers to the tiny ones.

That is why the vessels have a pre-fix USS (United States Ship) in each of their names.

Better still, the aircraft carriers are large and, as such, are a typical sea-going airbase.

They have a ready flight deck and accessories for arming, carrying, recovering, and deploying aircraft.

Therefore an aircraft carrier is a warship.

Why is a Ship Transporting Goods Called a Vessel?

A vessel is a general term used to refer to all water-bound watercraft, and as such, a cargo ship (ship transporting goods) may well be referred to as a vessel.

What are the Different types of Tanker Ships?

We can broadly classify tanker ships into two categories, i.e., according to the goods carried and based on sizes.

According to the type of commodity:

• Oil tanker – this tanker majorly carries crude oil together with its by-products.
• Chemical carriers – this one transports chemicals and their corresponding products to different destinations.
• Liquefied gas carriers – these gas tankers carry and transports in bulk the LPG, LNG, or liquid-based chemical gases.

Some other categories of tankers include wine tankers, juice tankers, etc.

According to sizes

Based on sizes, tankers are available in the following types:

• VLCC
• ULCC
• Panamax
• Aframax
• Suezmax
• Capsize
• Handymax
• Lighters
• Handy

How Many types of Bulk Carriers are There?

A bulk carrier carries and transports a majority of dry, bulky cargo in huge quantities.

Such kinds of cargo are loose in design without any specific or pre-determined package.

The different varieties of bulk carriers include:

• Gearless bulker
• Lakers
• Tramp bulker
• Cargo liner
• Geared bulker
• Conventional bulker
• Self-discharging bulker
• BIBO

What are the Advantages of a Bulk Carrier Vessel?

Firstly, they ferry goods in bulk quantities over long distances.

Secondly, the bulk carriers can transport both dry cargoes e.g., grains, and break bulb cargo e.g., cement, timber, etc.

What are the Different Sizes of Container Ships?

Container ships can well be classified into seven basic categories, as outlined below:

Panamax

their first entry was in 1980.

They have got a capacity range of between 3001 – 5100 TEU (Twenty-foot Equivalent Units).

Their length is about 965 ft.

These dimensions were so much tailored to enable them freely pass the Panama Canal.

Suezmax

The Suezmax ships have a capacity of 12000 TEUs.

They were designed to pass via the Suez canal and have a similar size to the Suez canal; breadth of about 50-57 m.

Post-Panama

These types of containers were designed to have a substitute for the Panama Canal route.

They were most significantly cellular container vessel type.

Their capacity is about 6400 TEUs

Post Suezmax

These vessels’ dimensions are too big for the Suez canal, and so use an alternative route.

Post Suezmax vessels are the ultra-large type.

They have a capacity of about 18000 TEUs with a 60 m breadth and 21m drought.

PostMalaccamax

The post-Malaccamax have got the maximum possible draught dimension of about 21m of the Malacca Strait.

They do not dock in any random ports due to their drought size except for the Singapore and Rotterdam ports.

What are the Energy Sources for Ships?

Different kinds of Ships utilize distinct categories of energy for propulsion.

Burning fossil fuels e.g., diesel, gas oil, and heavy oil, in the engine’s combustion chamber.

Wind – the wind’s kinetic energy is capable of propelling the ship to move in its direction.

Even though the wind is a source of energy, it can only propel a small-sized vessel to be a sole energy source.

Often, most shippers use wind as a substitute energy source or as a complement to other sources.

Steam is another energy source for driving the ships; they have to be accompanied by steam engines and a chimney.

Is a Vessel the Same as a Boat?

No, a vessel is not a boat because it is a general term for describing the watercraft.

However, a boat is a water vessel, and as such, when listing the examples of vessels, we include a boat amongst others.

What are the Different Variations of a RoRo (Roll-on/ Roll-off) Ship?

A RoRo ship is a unique type of vessel with a ramp for loading and offloading cargo trailers into the shipping compartment.

To further enhance the cargo’s loading, you need a cargo trailer with wheels to drive the goods into the ship.

They further utilize several ramps for proper loading and unloading cargo.

There are a few variations of the RoRo ships, which comprises of:

Pure car carriers (PCC) and Pure Car Truck Carriers(PCTC); the former exclusively transports cars while the latter transports all kinds of vehicles.

ROPAX; This one is a Roll on/ Roll off a passenger ship.

The ship is a Ro-ro type designed for freight vehicle shipping together with passenger housing.

However, the ship is only limited to short sea transport.

Rolo – Roll on lift-off vessel.

Rolo has got ramps for accessibility by the vehicles to the vehicle decks, an additional cargo deck but restricted for accessibility by the cargo cranes.

Thus, these vessels carry both vehicles and general cargo.

ConRo– hybrid of a RORO ship and container ship.

It utilizes the compartment beneath the deck for storing vehicles whereas keeping the containers above the decks.

How Safe is a Ship?

Ships are very safe such that some researchers put the odds of perishing in a ship at 1 in 6.25 million.

From the design, manufacturing, to usage, the ships adhere to strictly laid-down rules and regulations to ensure everyone’s safety on board.

All the ships, including the cruise ships, promptly follow the US and Maritime law.

Cruise Line International Association (CLIA) maintains that an ordinary ship has to undergo more than 60 environmental, safety and health inspections every year.

Furthermore, the rapid advancement in marine technology further enhances the safety of the ships.

What is the Berthing of a Vessel?

Berthing of a vessel means mooring of a vessel like a ship at the berth whenever it is not at sea.

A berth commonly refers to a quay, pier, or wharf at which the ship comes along.

Besides, it is at this place that the sheep moor or anchors.

Berthing of a ship usually takes place at the port, bow, stem on, or starboard side.

The crew usually berths the vessel to enhance loading and unloading.

What are the Defining Differences Between Ship, Vessel, and Boats?

As we earlier noted, a vessel is a general term.

However, expansive and more complex vessels are ships, while the small and straightforward vessels are boats.

Now the main distinction comes between a boat and a ship.

And indeed, they are distinct and wide apart in meaning.

Technically, in terms of size, a ship is larger than a boat.

Moreover, ships operate and navigate the deep sea waters/ oceans while the boats are prevalent in shallow waters such as lakes or coastal regions.

Ships include tankers, cruise vessels, RoRo ships, while boats include sail vessels, paddle vessels, etc.

In terms of navigation and technology, boats are simple in design and equipment, while ships have a complex operation and drive.

Besides, boats have a little deck for cargo regarding their carrying capacity, whereas ships have a huge capacity to accommodate tonnes.

At what Point Does a Boat Become a Ship?

A boat becomes a ship whenever it meets the following expectations:

Firstly, If it increases in size to more than 197 feet (60 meters) length overall (LOA).

Secondly, incase the boat has over 500 tonnes of displacement.

Thirdly; if the boat is a commissioned surface vessel according to the US Navy regulations.

What is Chartering Vessel?

Chartering a vessel means the mutual agreement between a shipowner and a cargo owner.

This is whereby the owner, after striking a deal, rents out their ship for use in transporting the cargo.

Such kind of process, including contracts or legally binding agreements, is called a ship charter.

In this case, the shipowner becomes the legally registered entity as the ship owner, while a charterer is a hiring company.

A charter party, therefore, refers to the legal contract which binds the shipowner and a charterer.

How Do you Find out Who Owns a Shipping Vessel?

Finding a shipowner is a bit more rigorous than you can imagine – because there is no distinct register outlining all these details.

Nevertheless, you may find that vital information with your countries’ government agency in charge of maritime or vessel sails.

For example,you may find the Maritime and Coastguard Agency  (MCA) records register in the UK.

Apart from that, you may find the ownership information in your contract letter issued by the shipping company.

What are the Differences Between a Vessel and a Tank?

A vessel could be small/ simple boats or large/ complex ships carrying a wide variety of cargo and ferrying passengers between ports.

On the flip side, a tank is a large ship that ferries liquid or gas-based cargo such as LPG, crude oil, etc.

How do You Determine a Vessel Position?

Determining a vessel’s position should be relative to your actual station or location.

If you are on land (not necessarily in the vessel), then you may use the following techniques:

Use your smartphone together with the Automatic Identification System App.

However, you have to know the ship’s AIS and confirm that it is indeed broadcasting.

Use GPS automatic positioning.

Besides, you can use celestial navigation positioning.

Incase you are onshore, then you can utilize the following:

Working out the bearings of various identifiable locations, then your position becomes where the bearing line crosses.

Alternatively, you may use GPS positioning.

How Many Containers Does a Ship Hold?

The number of containers entirely depends on the ship’s size and capacity.

The capacity of container ships is measured in Twenty Equivalent Units (TEUs).

Some have low TEUs while others have higher quantities specifically, the ships capacity range from about 4000 TEUs to more than 23000 TEUs.

What Material is Used to Make the Bottom of a Ship?

Welded Bent plates are the primary material for the bottom of the ship.

The shipbuilders always have to be keen to reinforce the plates while also stiffening them as necessary.

The plates are integral for two reasons; firstly, they keep the ship bottom strong to withstand the load’s heavyweight.

Secondly, the plates enable the hull to endure outward hydrostatic pressure that acts upon it.

What is the Difference Between a Stiff Ship and a Tender Ship?

A stiff ship is steady in the waters due to its low lying center of gravity to the bottom (keel).

The center of gravity’s position is low lying because of the ship’s considerable metacentric height (GM).

Consequently, a stiff ship would quickly snap back and roll rapidly when hit by waves, which means that they are so prone to the waves’ effects.

And that would be uncomfortable to those on board.

Elsewhere, a tender ship effectively endures the waves’ effects by rolling further on and back slowly.

Therefore, tender ships are way much comfortable for passengers.

This kind of ship has its center of gravity relatively higher from the bottom,i.e, a low GM.

As a result, they are less stable.

What are the Advantages of a Stiff ship and a Tender Ship?

A stiff ship is more stable in the waters, whereas a tender ship is more comfortable to passengers on board.

As you can see, both vessel and ship play an integral role in modern water transport.

At Tj chinafreight, we help you ship all your goods easily via sea freight.

We will handle everything for you – from booking spaces in ship, customs clearance to warehousing.

Contact us today for all your freight forwarding services from China.

If you want to skyrocket your import business using Dropshipping agent, then this is a must-read guide for you.

It explores all the vital aspects you need to know about Dropshipping business.

Keep reading to learn more.

What Is Dropshipping Agent?

Dropshipping is defined as a retail strategy wherein the store is not obliged to store the products.

However, what happens is that the store obtains the products from a third-party supplier.

How it works is that when a client places an order on your site.

The order details are sent out to the supplier.

The supplier then delivers the product to the buyer’s address.

Note that the supplier supplying the goods to the buyer is known as a dropshipping agent.

It is imperative to ensure that you select a dropshipping agent that works in your niche.

What Does A Dropshipping Agent Do?

A dropshipping agent is a professional who helps their client to find the best products at an affordable price.

The agent also helps in product fulfillment and arrange the shipment.

Besides, the good thing about using a dropshipping agent is that it allows you have extra time to focus on other elements such as marketing.

How Does A Dropshipping Agent Work?

Basically, by using a dropshipping agent, all you need is to offer them the product details.

Once the agent receives the details, they immediately look for manufacturers who provide quality products at an affordable price.

Once you agree to the terms laid out by the dropshipping agent, you can make your payments.

Note that you will be required to pay some extra cost to cater for the service.

The good thing about using a dropshipping agent is that you do not manually send in the customer details.

For you to make the whole process easy, it is best to use a CSV file each week that contains your customer’s information.

You can also request the dropshipping agent to stock up products that are on demand.

Who Should Consider Dropshipping Agent?

People who often benefit from using a dropshipping agent are store owners.

There are store owners who enjoy managing their stores.

However, a large group of people is turning to use agents to help manage their stores.

When Should I Hire A Dropshipping Agent?

There are a few factors that will help determine if you need to hire a dropshipping agent.

Here are some of them:

1. Assess how efficient your store is. If you notice that you are spending a lot of time managing your business; as a result, you may end reducing your profit. This is because of the time you spend managing your business, you can ultimately use it in other departments.

Therefore if you have a large volume of orders, it may be of help to make use of a dropshipping agent.

It gets better as the dropshipping agent will help in product fulfilment and labeling it.

2. Assess the kind of control you wish to have over your business.

Surprisingly, making use of a dropshipping agent helps you have more control compared to managing the business by yourself.

By using a dropshipping agent, you will get an explicit command of your inventory.

Having adequate information on your inventory will offer you a good picture of the products you ought to tap into to help you get profits.

3. Do you need to improve on your customer experience- Making use of a dropshipping agent will enhance your relationship with your customers. Ideally, most clients like it when they know what is happening with their order.

The good thing about using a dropshipping agent is that they will with tracking the order.

Every order shipped by the dropshipping agent has a tracking number that you can easily track.

This action helps reduce any human errors.

This will help you become a reliable source.

Evaluating these factors will help you determine when you may need to hire a dropshipping agent.

What Are The Benefits Of Dropshipping Agent

Here are the benefits you will profit from using a dropshipping agent.

1. Take advantage of affordable prices- One primary function of a dropshipping agent is negotiating the prices.

Making use of a dropshipping agent is like buying products in bulk.

Anytime you purchase your products in bulk, you are likely to obtain a discount.

2. Making use of a dropshipping agent helps you obtain the best delivery time-In most cases; anytime you wish to ship some products, it tends to take long. On average, the shipment might take as long as two to three weeks or even more depending on your supplier.

Hence, to avoid any complaints from your clients, it is best to use a dropshipping agent.

A dropshipping agent helps ensure that the goods are delivered within a period of seven to twenty days.

Also, by using a dropshipping agent, you are certain the follow-up on your package’s information is accurate.

3. You are not limited to repackage your parcels- One element that is highly appreciated by most people from using a dropshipping agent is that they allow their clients to repackage their products.

There are various information you can add while repackaging your parcel. It includes:

• You can add your logo to the parcel.
• If the packaging was not ideal, you could decide to improve and repackage the parcel.
• You can add a promotional code to the package if need be.
• While repackaging, you can as well include a word of thanks to the client.
• Finally, if you forgot to include the instructions on how to use the product. By repackaging, it offers you the chance to include the omitted information.

There are a few shipping companies that allow repackaging of the parcel. However, if the order is in bulk, most, if not all, shipping companies do not allow it.

4. Quality control- A dropshipping agent often counter-checks to ensure that the products are of quality.

They act as a representative for you when obtaining the products from the supplier.

By using a dropshipping agent, you are confident that the products you will receive adheres to your company’s requirements.

5. Save on time and effort- By using a dropshipping agent, you are sure that you will not go through the process of finding the right supplier.

Obtaining aid from a dropshipping agent will help you have an acquired free time.

You can use the newly acquired time to focus on other elements to boost your business.

What Are The Best Items To Dropship With An Agent?

Before highlighting some of the products, you ought to dropship with your agent.

It is best to highlight some of the elements to assess that will help you choose the right product.

• Choose products that are under 10$ that are useful or beautiful.

In most cases, by choosing these products, you are certain that they will sell fast.

The items include smartphone covers, keychains, pet products, jewelry, and stuffed toys.

• Choose rare products to find- Choose rare products to find on various online shopping platforms.

In most cases, most shoppers tend to compare the prices with other online shopping platforms.

Hence it will be of benefit to have products that are hard to find.

• Pick useful products- Make sure that you choose products that most consumers will find very useful.

With these factors in mind. Here are some of the products you ought to dropship with an agent.

• Water shower filter
• Mirror alarm clock
• Magnetic charge cable
• Slime
• Neck phone holder
• Mirror lamp
• Desktop punching bag
• Wireless charger
• Electric flea comb for puppies
• Roller elliptical massager
• Legs for drones
• Organic tea
• Waterproof floating phone cases
• Portable mini air conditioner

Can I Dropship Branded Products With A Dropshipping Agent?

In most cases, dropshipping agents are not allowed to dropship branded products.

How Do I Get An Agent For Dropshipping?

There are a few methods you can use to help you find a reliable dropshipping agent.

The approaches include:

1. You can utilize the internet to search for a dropshipping agent.

This is a straightforward approach to use as you do not have to leave the comfort of your house.

Making use of the internet to look for a dropshipping agent is relatively inexpensive.

This is because all you need is a smartphone or a laptop and a working internet connection.

Ensure that you are cautious while using this method.

This is because it is relatively easy to contact a con artist.

2. Use YouTube to search for a dropshipping agent- While using YouTube, ensure that you make use of specific keywords to help you find the right dropshipping agent.

Ensure that you watch the videos for you to have a good understanding of what you are getting yourself into.

3. Utilize Alibaba- The good thing about Alibaba is you can use it to find any product or service. There is a list of dropshipping agents on Alibaba.
4. Make use of trade shows- If you wish to get in touch with a reliable dropshipping agent, then it is best to make use of trade shows.

How Do Dropshipping Agents Charge For Their Service?

It is imperative to understand that a dropshipping agent’s charges tend to range between $2 and $5 or more.

However, the total cost is often determined by the size of the order.

Also, the complexity of the order has a significant influence on the total charge.

The other factor influencing the total cost you will pay the dropshipping agent is the number of orders you have.

If the orders are quite many, you are likely to pay more compared to one whose orders are few.

Can I Lose Money Dropshipping With An Agent?

There are various ways that you can lose your money while dropshipping with an agent.

Dropshipping has a low-risk fulfillment structure; however, this does not mean that dropshipping with an agent does not have its own risks.

Here are some of the areas that you are likely to lose money when dropshipping with an agent:

1. Refunds- In most cases, dropshipping with an agent tends to take a while. This can be pretty annoying for the client who urgently needs the product. Once the product is brought to the client, most of not all will request for a refund.

The refunds will eventually eat in your profits.

2. Returns- In some cases, some clients tend to order the wrong sizes when dropshipping with an agent.

When this happens, the client will definitely request a return.

When dropshipping with an agent, you will be required to cater the returns by yourself. This will reduce your profits.

3. When using an agent to dropship your products, while the clients are placing the orders, they will only rely on the photos published on the site.

There are cases where the client might receive products that are not the same as those they saw on the site.

If this happens, the agent will not be liable for the poor quality of the products.

Instead, you will be required to cater to the returns if necessary.

4. Using an agent to dropship products has become quite a popular method that more business owners use while shipping products.

However, there are risks to it.

When using a dropshipping agent, you will be required to pay an upfront fee.

There are cases when you may pay the upfront fee, and the agent disappears with your money.

If this transpires, you will lose your money.

How Do I Negotiate Prices With A Dropshipping Agent?

There are a few guidelines you can make use of to help you negotiate the prices with a dropshipping agent.

Here are some of the guidelines:

• You should familiarize yourself with the prices set by the different dropshipping agents.

This will be of help while coming up with negotiations.

Understanding the industry’s practice will help you create a sensible offer.

• Often than not, you are likely to obtain discounts if you order in bulk.

You could share your past order records for the dropshipping agent to deem you as a serious buyer.

By buying in bulk, it will be easy for you to negotiate with your dropshipping agent.

• Negotiate outside the price- You may come across a dropshipping agent who is unwilling to lower their price range.

If this is the scenario, you may try to negotiate on other elements to help you get discounted prices.

The elements you can negotiate on are; packaging, product fulfilment, and mode of shipping.

• Talk to multiple dropshipping agents to create a bidding competition. Informing the dropshipping agent about the competitor’s quote will improve your chances of obtaining a discounted offer.

What Are POD (Print On Demand) Agents?

A print-on-demand agent offers custom orders to their clients.

This comes in handy for buyers whose clients preferred customized products.

Print on demand agents are growing in the market.

They provide a variety of products such as electronics and apparel.

Both print-on-demand agents and dropshipping agents tend to offer inventory management.

Both agents offer product supplies and deliveries for the orders placed by the clients.

It gets better as both POD agents and dropshipping agents do not require you to rent out a warehouse.

The working of a POD agent is quite similar to that of a dropshipping agent.

This is because they make it possible for clients to access international products.

What Is The Difference Between POD agent and Dropshipping Agent?

The main difference between a dropshipping agent and a POD agent is that the dropshipping agent cannot offer customized products, unlike a POD agent.

POD agents often attract businesses that need to sell apparels that have unique designs.

Dropshipping agents require the buyer to pay for their stock.

However, a print on demand agent will request you to pay for the stock only after selling it.

POD agents do not offer customer metrics; this makes it hard for you to know the customer’s needs.

This is not the same case when using a dropshipping agent as the customer metrics are available.

The profit margins with print on demand agents are relatively high compared to dropshipping agents.

How Does A Dropshipping Agent Conduct Product Quality Inspection?

Before items are shipped, the dropshipping agent conducts a product quality inspection.

The agent inspects the product to ensure that everything is functioning.

The inspection ensures that every part is intact.

Also, for products such as electronics, the dropshipping agent conducts some running tests.

The test helps ensure that the products being shipped function properly.

During the quality inspection, the dropshipping agent provides that the labelling of the products is correct.

Also, the dropshipping agent makes sure that the shipment has the right amount of orders.

Do Dropshipping Agents Have A Minimum Order (MOQ) Requirements?

There are a few dropshipping agents that have an MOQ requirement.

Some of the dropshipping agents who do not have a MOQ often request the buyer to make use of a bestselling product.

While placing the orders, the buyer ought to place an order of at least ten products.

This is a factor can work great for you as the dropshipping agent can stock up the products; this will help reduce the order processing time.

Can A Dropshipping Agent Help Me Source A Private Label Product?

Yes, a dropshipping agent can help you source a private label product.

A dropshipping agent will help you look for a factory or supplier who can quickly provide the private label product.

They will also inquire about the MOQ for you to have a more comprehensive knowledge of the company.

What Are The Considerations For A Good Dropshipping Agent?

Here are some considerations you ought to be on the lookout for while choosing a dropshipping agent:

1. Communication skills- Only settle for a dropshipping agent with excellent communication skills.

Remember how the agent performs will significantly affect the kind of reviews you will receive from your clients.

Hence to avoid frustrating your consumers, ensure that you choose a dropshipping agent with a prompt support system.

2. Ensure that the dropshipping agent has a functioning full automatic application that will help with the workflow.

Most business owners prefer using CSV files; however, CSV has a number of disadvantages to it.

For you to have an easy time managing and to track your order ensure that the agent uses an automated dropshipping application.

3. Avoid using dropshipping agents that ask for an upfront fee. This is a huge warning sign as the dropshipping agent might not be reliable.
4. Check to see if the dropshipping agent can offer private label dropshipping services.

This kind of service will come in handy because it will help increase your brand identity.

5. Ensure that the dropshipping agent understands your niche.

With this, it will be of help to pick a dropshipping agent who is familiar with your business.

This is because it will be easy for them to pick the right products that will help boost your firm.

Can I Use Dropshipping Agent Service If I Lack A Reseller’s License?

You can proceed without a reseller’s license; however, your business will not seem as legitimate.

A seller’s permit is required anytime you are dropshipping from your supplier directly to your consumer.

Most suppliers will not make a deal with the client if they do not have a seller’s permit.

This is because the reseller’s license is required to obtain a dealer account.

Also, having a seller license can be of benefit to you as you will not be required to pay taxes for every order you place with the supplier.

Who Pays For Duties And Taxes If I am Dropshipping With An Agent?

There are various factors that influence who pays the duties and taxes when dropshipping with an agent.

These factors include the three parties’ location; this is because different states tend to have dissimilar rules on who ought to pay when dropshipping.

The taxability of the goods; remember that all goods have their own taxing rules.

Finally, the last factor affecting on who pays the taxes is where the supplier and the seller has nexus.

Note that often than not, the clients pay the sales tax to the seller.

Do Dropshipping Agents Take Liability Of Goods During Dropshipping?

In most cases, dropshipping agents do not take the liability of goods during dropshipping.

This is why it is best to purchase a dropshipping insurance cover, as it will come in handy if the goods get ruined.

What Are The Risks Of Working With A Dropshipping Agent?

There are a few risks you are likely to encounter from using a dropshipping agent. They include:

Less Control

One big risk of using a dropshipping agent is that other firms will take control of your business supply chain.

Therefore, your business’s survival is in the hand of other companies who may care less about your business.

In most scenarios, you will not have control over the product’s quality being brought into your business.

Therefore to ensure that you do not have any regrets, ensure that you work with a trustworthy dropshipping agent.

Reliance on other People’s Stock

One perk of using a dropshipping agent is that it allows you to offer new products.

However, the downside to this perk is that if the supplier runs out of stock, the dropshipping agent will have nothing to offer you.

This may make you lose clients or have a longer lead time.

Poor Customer Service

If the supplier fails to deliver the right goods, the blame will be on you.

The risk of using a dropshipping agent is that you will not have a bond with the supplier.

Also, you will not have the chance to quickly solve any customer issues as you do not have the inventory at hand.

Do Dropshipping Agents Offer Warehouse Services?

Yes, dropshipping agents offer warehouse service.

This is a benefit for businesses that buy products in bulk as they do not have to go through the bother of searching for a warehouse.

How Long Does A Dropshipping Agent Need To Process My Order?

Note that processing time starts when a fulfillment request is received to when the client obtains a tracking number.

In most cases, dropshipping agents tend to take between two to three days.

Understand that if the processing time is longer, the order might take longer to get to the client.

Can Dropshipping Agents Recommend Best Selling Products?

Yes, a dropshipping agent is allowed to recommend best-selling products to their clients.

Do Dropshipping Agents Offer Branding And Customizing Service?

Yes, a dropshipping agent can help with branding and customization services.

If you need this kind of service, it is imperative for you to communicate in advance.

All you are neccesitated to do is send in the designs, and they will take care of the rest.

How Does Dropshipping Agent vs. Sourcing Agent vs. Purchasing Agent Compare?

A dropshipping agent who helps their client sourcing a product, quality inspection, warehousing services, branded packaging, labeling, and order fulfillment.

A sourcing agent is a professional who helps locate sources of products and supplies at a low price.

A purchasing agent is a professional who offers to buy goods or property on behalf of their client.

The main difference between a dropshipping agent, a sourcing agent, and a purchasing agent is in their roles.

Both purchasing agent and a sourcing agent do not offer warehouse, packaging, labeling, and order fulfillment, unlike a dropshipping agent.

The huge similarity is that the three agents help in the negotiation of prices.

The agents also help in locating products for their clients.

However, a dropshipping agent has responsibilities they offer to their clients.

Do Dropshipping Agents Ship Internationally?

Yes, dropshipping agents ship internationally.

However, this element varies with the agent.

Hence it would best to check if they offer such a service before setting a contract with them.

Are Dropshipping Agents Middlemen In International Trade?

A middleman is an individual who buys goods from manufacturers and sells them to a retailer or a consumer.

In international trade, a dropshipping agent can act as a middleman.

This is because the dropshipping agent will help you access a reliable manufacturer who has attractive rates.

Always ensure that you make use of a reliable dropshipping agent.

This is because their reliability will come in handy while interacting with the international manufacturer.

A reliable dropshipping agent will only buy quality goods from a reputable manufacturer.

Is There An Alternative To Having A Dropshipping Agent?

There are a few options you can use as an alternative to using a dropshipping agent.

They include:

Using Tools that can Help Automate your Dropshipping

The good thing about using this approach is that it is an efficient method.

For the reason that you have control over the tool.

Simply you have the power to filter out what you do not need.

Moreover, it is quite easy to find the best-selling products.

More or less, the tools perform the same functions as the dropshipping agent.

For the reason, once the order is placed, a tracking number is automatically sent to your client.

Using Aliexpress for Dropshipping

Unlike other marketplaces, Aliexpress has a unique structure that helps support dropshipping.

It is quite easy to locate the products you need and directly converse with the supplier.

The downside of making use of these alternatives is that you may end up using a lot of time trying to find a reliable supplier.

This, however, is not the case when using a dropshipping agent as they take care of everything.

What Is A Blind Dropshipping Agent?

This is a kind of dropshipping where the shipment is sent directly to the customer.

However, in blind dropshipping, the customer is not aware of the supplier’s identity.

How it works is that once the customer places the order, you pay directly to the wholesaler, who later sends the parcel from the warehouse.

Ideally, the blind dropshipping agent will use a special type of dropship packaging.

Most business owners delight in using this approach as it protects the interest of your business.

Also, blind dropshipping provides faster transit times.

This can work in your favor as clients will deem your business as a reliable one.

One major downside of using a blind dropshipping agent is that you have little control over the freight shipping rates.

This, therefore, denotes that you will have to charge your customers extra charges to cater to the shipping fees.

The other downside of using a blind dropshipping agent is that you have no control over your products.

Therefore the customer may receive damaged products, or they may have missing components.

This may, in turn, ruin your brand.

The other disadvantage of using blind dropshipping is that the process is quite complicated; this, in turn, may result in a longer shipping time.

Do Dropshipping Agents Offer Credit?

Most dropshipping agents do not offer credit.

This is because most dropshipping agents tend to have a monthly subscription.

Additionally, when dropshipping, the suppliers will require your credit information for them to process your information.

The good thing about using a dropshipping agent is that their prices are quite favorable.

Hence you are certain that buying from them will save you on cost.

What Are The Basic Steps A Dropshipping Agent Takes To Get Packages Through Customs?

Here are the steps that a dropshipping agent takes to get packages through the customs:

• The custom officer will go through the paperwork presented by the dropshipping agent- Note that if the shipment is International, the agent ought to present a commercial invoice.

The document contains the information of both the supplier and the receiver.

The document also holds the description of the parcel and its value.

• The next step is the customs officer will check if any taxes or duties apply to the parcel.

Note that this will depend on various factors such as the law of the importing country.

Also, the value of th

In this guide, you will find all information you’re looking for about container yard cutoff.

Remember, knowing these freight terms will help you save both cost and time when importing from China.

So, keep reading to learn more.

What does CY (Container Yard) Cutoff mean?

A Container Yard (CY) is a holding place for shipping containers on the dry land or terminal before they are offloaded or loaded on a ship or vessel.

CY cutoff or closing time is the set date by which a container has to be checked-in in the CY before sailing.

Who determines CY Cutoff?

CY cutoff is usually determined by the carrier or freight forwarder.

When is CY Cutoff?

Mostly, the Cutoff is set two days before the set sailing date.

However, CY Cutoff varies depending on terminal or port and can be anywhere between 3-5 days.

What is the Difference between CY Cutoff and CFS Cutoff?

Importantly, CY is ultimately used for Full Container Load Shipment (FCL).

On the other hand, Container Freight Station (CFS) is primarily used for consolidation and deconsolidation of Less than Container Load (LCL) shipments.

Notably, from the CFS, the cargo moves to the CY.

Below are some significant differences between the two cutoffs:

What is Si Cutoff?

Shipping Instructions (SI) is the documentation issued to the carrier by a shipper, highlighting a cargo’s details and transportation requirements.

Therefore, SI Cutoff is the deadline for a customer to issue the mentioned documentation to the carrier.

Mostly, an SI contains:

• Shipper
• Consignee
• Booking Number
• Port of Loading
• Port of Destination
• Container and Seal Number
• Packaging type and Number of Packages
• Weight/Volume
• Payment terms for Freight
• Place of Payment
• Cargo Description

What is the relationship between Si Cutoff and CY Cutoff?

SI is essential for the documentation and submission of a shipment’s manifest.

Consequently, timely submission of SI (before SI Cutoff) will enable your shipment to meet the CY Cutoff.

On the other hand, delayed submission of SI will translate to your shipment not having adequate documentation.

As a result, the merchandise won’t meet the CY Cutoff.

Notably, the SI is used during the booking. Without booking, you will not be able to ship your container leave alone meet the CY Cutoff.

What is the importance of CY Cutoff in shipping?

CY Cutoff ensures strict adherence to the shipping schedule. Shipping of goods is an intermodal affair.

Hence, the shipping schedule should be upheld.

Any deviation from the shipping schedule may result in the complete disruption of the shipping process.

For this reason, CY Cutoff closes out any containers that do not meet the deadline to prevent any delays in shipping.

Also, CY Cutoff enhances operational efficiency.

As an importer, you will know when your cargo is due to be shipped.

Consequently, you will arrange the transport means you will use to pick your shipment from the port/terminal to your preferred warehouse.

How does knowing CY Cutoff benefit my Business?

As an exporter, knowing the CY Cutoff will guide you on when to provide the SI.

The SI will is used in preparing a Bill of Lading, which is an essential document in shipping.

Ultimately, the manifestation and shipping of the merchandise will also be done on time.

This will boost your customer’s confidence. Consequently, you will end up having extended transactions with the customer.

Besides, knowing CY Cutoff will save your exporting business from unplanned costs.

When your shipment is within the shipping schedule, there will be operational efficiency.

This, in turn, eliminates any expenses that may result due to delayed shipping.

How does CY Cutoff Factor in Transit Time Calculations?

Generally, transit time is the time it will take to move your cargo from the point of origin to the point of destination.

Since CY Cutoff determines which container will be loaded on the carrier vessel, it will affect the transit time.

Take an example of a cargo is set to be shipped from point A to point B on 1^st January 2021.

The transit time is 30 days. Therefore, its expected arrival date is 31^st January 2021.

However, the CY Cutoff date is 2^nd January 2021.

Meaning, the cargo will not be loaded on the vessel until the cutoff date lapses.

Hence, resulting in a late departure from the point of origin.

Significantly, you should set CY Cutoff to be around two days before shipping when calculating transit time.

As a result, you will get the Expected Arrival Time (EAT).

Which Service Loops do I need for CY Cutoff?

The service loops you will need for CY Cutoff will depend majorly on your merchandise’s availability and readiness.

How do I choose Service Loops for Container Yard Cutoff?

Observe the following when choosing Service loops:

• Ensure that the CY Cutoff is in line with the time you plan to ship
• Establish when your merchandise will be ready for shipping
• Consider all the various Service loops and choose the most cost-effective

Are there Circumstances under which Container Yards may accept Containers past Cutoff?

Most shippers are strict on the CY Cutoff dates set since there is a shipping schedule.

Any disruptions on the schedule have a lot of negatives on the shipping company.

As a result, most Container Yards will reject containers delivered past Cutoff.

However, your container may be let into the Container Yard, depending on your forwarder.

If, for example, you informed the forwarder that you will be running late due to unforeseen circumstances.

It will be ethical for the forwarder to give you some grace period.

What happens when I deliver Shipments past CY Cutoff?

Unfortunately, your shipment will not be loaded on the planned vessel.

Consequently, your shipment may have to wait for the next shipping.

The waiting period may last for over a week.

In the worst-case scenario, your shipment may be rejected altogether.

But here is the good news, your container can be accepted in specific scenarios.

Say there was traffic on the way to the port, or even loading the container was hectic.

All you need to do is call the forwarder and explain the ‘unavoidable circumstance.’

However, this is not a guarantee that the forwarder will be lenient.

What is Incoterms Relation to CY Cutoff?

Incoterms spell out where the transfer of liability occurs between the seller (exporter) and the buyer (importer).

Most incoterms are used to oblige the seller to deliver the merchandise to the CY in time.

The seller is preferred since the CY is within his/her locality.

However, in incoterms like EXW or FCA, either the buyer or the seller is responsible for meeting the CY Cutoff.

Knowing and understanding the incoterm used in a trade will help define who is liable if the merchandise does not meet the CY Cutoff.

Who bears Liability when Containers are delivered past CY Cutoff?

Depending on the incoterm used, either the buyer or seller can bear the liability for delivery past the CY Cutoff.

Notably, in a case where the buyer sought a shipper’s services, the liability can be transferred to the shipper.

How do I know CY Cutoff date and time?

Most if not all of the terminals post their CY Cutoff date and time on their website.

Hence, you can easily access and know the Cutoff date and time of the terminal you intend to use.

Alternatively, you can directly contact a terminal and request their CY Cutoff date and time.

Also, you can make a shipping booking.

When the forwarder confirms the booking, you will receive a letter with the CY Cutoff date and time.

Do Carriers extend CY Cutoff during Peak Seasons?

Although most carriers will not extend their CY Cutoff during peak seasons, they can accept your shipment after the deadline.

However, your shipment will be considered for the next sailing.

Logically, extending the CY Cutoff will do more harm than good.

Since large numbers of shipments characterize peak Season, an extension will only worsen the situation.

How do I make CY Cutoff when shipping during Peak Season?

Early and fast preparation is vital. Ensure you have all the documentation needed.

Check that your cargo is compliant with all the necessary regulations.

Also, hire the services of a reliable shipper.

Ensure that the shipper knows how to navigate through the peak season.

Consequently, your shipment will be delivered on time to the Container Yard.

Notably, an experienced shipper is a guarantee that your shipment will arrive before the CY Cutoff.

Can I Deliver Containers Too Early before the CY Cutoff Date?

In this scenario, forget about the early bird catching the worm.

Early might turn out to be more costly to you.

You may end up incurring demurrage charges and port storage charges.

Port storage charge is the amount you will pay when your container exceeds the port’s free storage days.

On theother hand, demurrage charges is the fee you will pay for the extended use, past the free period, of a shipping line’s container.

As a result, a too-early-delivery will not be advisable.

If you plan an early delivery to the container yard, ensure you are within the free period issued by the port and/or the container provider.

However, if you own a container, you need not worry about demurrage costs.

Is it Advisable to Book shipping weeks before CY Cutoff?

Before you can know the CY Cutoff, you first have to make a booking.

When the forwarder confirms the booking, you will be informed of the CY Cutoff in the confirmation letter.

However, most forwarders provide the CY Cutoff for various shipping lines.

Thus, there is no need for booking first.

You can directly check the CY Cutoff date.

Assuming you know the CY Cutoff, you should preferably make an early booking for shipping.

Thus, you will have ample time to put your shipment’s requirements in order.

Consequently, you will be able to deliver your shipment before the CY Cutoff.

However, when you make an early booking and change your mind, the terminal may charge you a booking cancellation fee.

What happens if the CY Cutoff date on my booking does not match the Cutoff date on either the Terminal or Carriers website?

The CY Cutoff date on the website might be outdated.

You should preferably use the one for the booking.

Nevertheless, do not leave anything to chance.

You can contact the forwarder or carrier to understand the reason for the contradiction better.

From there, you will be advised on the best course of action.

How do I ensure Timely Container Delivery to CY?

If you plan to make the delivery on D-Day, you should know the route to the CY.

Although it sounds insignificant, it can cost you.

Say, for example, the route to the CY usually is full of traffic; leaving the warehouse early will be advisable.

Also, ensure that your shipment is loaded in the container in time.

Avoid the last-minute-rush of loading the container on the CY Cutoff date.

You may complete the loading process after the deadline has elapsed.

Putting the shipment’s documentation in order will also come in handy.

With everything in order, you will deliver your container to the Container Yard in time.

Lastly, hire the services of an experienced shipping company.

They will work hand in hand with you to ensure timely delivery of the container to the CY.

Going all solo in the shipping business may be a hard nut to crack.

Can a Delay in Container Delivery to CY Affect Export Clearance?

Yes, containers are mostly handled on a first-come, first-serve basis.

When you deliver your container late to the CY, it may be rejected, halting the process of Export clearance.

However, if it is accepted, you may be unlucky to find that it’s well past Export customs officers’ working hours.

CY cutoff dates and times are set considering all the processes the cargo has to go through before loading.

Export clearance is among these processes.

Any breach of the set dates and times means interference with a process resulting in operational inefficiency.

At Tj chinafreight, we  provide a cost effective shipping solution from China to cny global destination.

Contact us today for a cost effective freight forwarding solution.