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If you’re looking for any information about customs broker, you will find it right here.

So, let’s dive right in.

What is a Customs Broker?

A customs broker is an individual or company that help facilitate international traders with their import and export of goods across the international borders.

The customs brokers work with small businesses, individuals or enterprise company that may need their expert services.

They will help you with the smooth clearance of goods across different countries.

What are the Responsibilities of a Customs Broker?

 

The responsibility of customs brokers is to handle the customs process for their clients’ shipments, whether by ocean, air or ground.

Some of the services they offer include:

• Organizing the necessary documentation for shipments to be exported
• Clearance of imported cargo
• Collection of the required taxes and duties
• Preparation of documents for customs accounting
• Consulting and advising their clients on things like Free Trade Agreements (FTA)

Each country worldwide has their unique import and export regulations as well as procedures.

They all affect different commodities and the rules keep on changing.

The customs brokers are experts in understanding and being updated on the regulations.

What other Services does a Customs Broker provide?

 

The customs brokers will also handle all communications with the relevant agencies and government officials.

They will do this to ensure that the right process is followed during shipment.

This helps in ensuring the goods get cleared correctly devoid of any delays thus saving clients’ time in dealing with customs officials.

What are the Benefits of China Customs Brokers?

 

Having a customs broker in china will serve you greatly. Some of the benefits include:

• Peace of mind-Having a customs broker in china is going to ensure that all your shipments are completed as per the existing laws.

By getting a customs broker in china, you do not need to study all the necessary laws.

You will not need to hire a specialist to join your workforce purposely to offer legal advice regarding customs.

 

• Having a customs broker in china makes it easier to deal with a customs broker other than speaking to other different government agencies separately.

 

• Having a customs broker helps you avoid chances of paying excess VAT or duty.

 

They also remove any risks of underpaying the duties and VAT which may lead to fines and extra charges if not paid.

 

• You must be aware that your shipment will not be released by the customs until you pay the duties and have your documentation in order.

In China, having a customs broker will help you in reducing delays thus keeping your business moving.

 

• Customs broker in china will lender you additional services. They include tracking the status of your delivery as it is transported from one point to another.

 

What are the Available Types of Customs Brokers?

 

There are three types of customs brokers. They include:

• Nominee customs broker
• Sole Trader customs broker
• Corporate customs broker

A Nominee customs broker is the individual who is employed who works for one or different brokerages at any single moment. Most customs brokers will fall into this category.

Every customs broker must be licensed by the relevant department in Customs and Border Protection.

How does a Customs Broker Work?

 

The customs brokers handle everything to do with the entry of goods into the country.

They receive goods shipped by the seller or their agent and process their entry into the country.

Customs brokers prepare all the necessary documentation and pay the necessary fees based on your agreement.

They inform you of all proceedings and the requirements if any.

Once the goods have been cleared by the customs authority, the customs broker will ship the cargo to your location. Where necessary, they will store the cargo awaiting transportation.

The customs broker is an intermediary between you, the government and any other parties involved.

How much do Customs Brokers Charge?

 

Every customs broker has their way of doing things and even their charges will differ widely.

The fees charged are tailor-made depending on the situation at hand and the work involved.

Your customs broker may give a quote covering the following items:

• Customs clearance charges will normally be charged as a flat fee.
• The Airline handling charges- these are assessed based on the delivery weight and are at least $62. It includes any fees levied at the port authority.
• The Airline bond transfer charges-the assessment is based on the delivery weight and is at least $21
• The port storage or airline- it is required in the customs clearance
• In case of a sea freight consolidated cargo, there will be handover, third party documents alongside other fees.
• Inspection fees for government agencies
• Bank transfer charges
• Onward delivery fees if necessary

Some customs brokers may charge flat upfront charges. It is always good to ask all the relevant questions regarding what you expect and what you are being charged for.

When should I hire a Customs Broker when Importing from China?

 

Several reasons will make you require a customs broker whenever you are importing from China.

Some of the reasons include when you need:

• A pre-release of a cargo
• After-entry services
• Any other reporting for the government agencies
• Automatic broker interface
• Binding ruling
• Customs bond
• Electronic transfer
• Filing in a remote location
• Peace of mind away from the hurdles involving the import process
• Review of tariff classification
• Services involving duty drawbacks
• Support on compliance

 

What is the Difference Between a Customs Broker and a Freight Forwarder?

 

• A freight forwarder is very different from a customs broker in that they are very wide in operation.

Such services include warehousing, consolidation of shipments, packaging services and preparation of customs paperwork.

On the other hand, a customs broker is very specific and requires several licenses.

 

• Most of the freight forwarders will also appear as customs brokers or offer brokerage services. However, a customs broker is not necessarily a freight forwarder.

 

• A Customs broker focuses on the importation side of international trade.

 

For exporters, they will view customs brokers as a conversation in a foreign country.

U.S. Exporters however will not require a customs broker since they are moving goods out of the country.

They will however require the services of a freight forwarder.

 

• A freight forwarder of an exporter can partner together to assist facilitate and fix any issues concerning an export transaction.

 

 

• A customs broker will ship cargo using the bill of lading issued by the shipment owner.

A freight forwarder however will ship cargo using their bill of lading commonly known as house bills of lading.

 

• A customs broker has low levels of legal liability on the shipper’s cargo since the goods are never in the broker’s possession.

Although the customs brokers still have liability insurance. A freight forwarder on the other hand will assume the greatest legal liability for the shipment including insuring it.

 

Do Freight Forwarders use Customs Brokers?

 

Yes, they do. It is very important that both the customs brokers and freight forwarder work in harmony.

They are very crucial in ensuring that the process runs smoothly and successfully.

Any issues arising in the trade can be sufficiently handled whenever there is a good relationship between the customs broker and the freight forwarder.

Where can I find a Customs Broker?

 

The best place to find a licensed customs broker is on the Customs Broker list on the Customs and Border Protection website.

Besides, the website lists all the licensed customs brokers and organizes them according to the points of entry.

The customs broker list indicates each custom broker’s port of operation and their respective contact information.

What is a Licensed Customs Broker?

 

A licensed customs broker can be an association, private individual, associations, partnerships or corporations that have been licensed by the Customs Service of the U.S.

They are licensed to:

• Preparing the entries
• Filing the entries
• Arranging for payment of duties
• Organizing for the release of shipment from the custody of the customs
• Representing their clients’ matters to do with customs

The customs brokers are the only authorized entities that are supposed to assist importers in their trade.

Even though the importers have the rights to conduct their clearance of goods, most importers chose to work with customs brokers.

Customs brokers can make their work easier due to their vast knowledge in the industry.

How do I choose a Customs Broker?

 

The following is a guide that can help ensure you get a reliable customs broker:

Do you have a Special Type of Import or Product Line?

If so, you need to get a customs broker who specializes or has immense expertise in the clearance of your special type of goods.

For example, alcohol, apparel, textiles among others have many regulations and laws which apply importation of such cargo.

Not every broker has the required experience in handling such cargo.

How many Ports does your Cargo Pass Through?

If your goods are going to pass through various ports, then you will need to hire customs brokers with offices in those ports.

A one-office broker may not be helpful as they may be forced to subcontract the work.

This increases the chances of import errors arising.

Automation is Important

Every broker regardless of their size should have fully automated connections to different cargo tracking sites and web portals not only the U.S. systems.

Your customs broker should be in a position to communicate with you via e-mail, telephone and fax.

 

What is the General Reputation of your Broker?

You shouldn’t just trust everything that the broker’s marketing materials talks of their reputation and capabilities.

The best place to get reviews about your customs broker is from their customers.

You can also inquire for non-biased comments from local air and ocean carriers.

Are you in need of a Dedicated Account Manager?

If the volume of your shipment is going to be high enough, then you may require a dedicated contact person to act as your representative.

They will be responsible for the coordination of your shipments needs including communication.

Have a Working Agreement in Place

It is important that draft an agreement on the scope of work and responsibilities with your customs broker.

It should also have the fees structure for every service being offered, contacts and the operational procedures.

The agreement should be shared with all our involved parties.

Any changes in your business must reflect on the agreement and that is why you need to review the agreement whenever they occur.

Can I be my own Customs Broker?

Customs brokers are not a legal requirement although they may be necessary.

Not all imports may require the effort of a customs broker.

As an individual or company, you can also be able to do the clearing of your goods and ensure proper payment of all duties.

It may be time-consuming but it is worth going through to ensure your cargo gets released in time.

Having a customs broker can be helpful as it will help in avoiding avoidable mistakes that you may not be aware of.

 

How do I clear Customs without a Customs Broker?

It is possible to import without a customs broker. You however need to understand what goes into the clearance of goods.

You must understand the Policies of the CBP and their procedures together with the requirements for importing your specific goods.

Besides, you must file all the entry documents at the port of entry.

Imported goods are considered to have entered the country once they have been authorized by the CBP and all the duties paid for.

You will be responsible for preparing the examination and dispatch of the shipment.

Also, you’re required to contact all the concerned agencies apart from the CBP e.g. the Food and Drug Administration if you are importing food products.

You may also be required to get a license, permit or any other certifications corresponding to the type of goods you are importing.

This will also depend on your local authorities and their policies that may require business licenses affecting your line of trade.

A customs bond may also be necessary if you are importing cargo valued at over $2500 or goods subject to the requirements of the federal agency.

You can choose to have a single entry bond or a continuous customs bond.

For continuous customs bond, you must make an application through the customs office at the port of entry.

Follow all the paperwork procedures of the CBP otherwise, you may get fined.

You also risk your merchandise being held.

You must understand what every type of import requires to successfully import your cargo.

Once that all is done and done correctly, you should have your cargo released without any issues.

 

Do I need a Customs Broker for Alibaba Imports?

Since there is no legal requirement stating that you must have a customs broker, imports from Alibaba are not an exception.

You can choose to have one or simply undertake the clearance process by yourself.

A customs broker is good as they come with a wealth of experience in the clearance of goods.

The process itself can be complicated and that is why it may be necessary to get one.

This especially so if you are importing from Alibaba for the first time.

Customs broker will help you avoid delays, overpayment of duties and miscommunications.

What Paperwork is required when dealing with a Customs Broker?

 

When importing into the U.S. through a customs broker, you must sign the power of attorney.

This allows the customs broker to act on your behalf. If you are importing using a continuous customs bond, you must sign the CBP application.

Other documents you need to have included the packaging list and a commercial invoice.

If you are dealing with other partner government agencies such as EPA, FDA, USDA etc., you will require the necessary paperwork done.

Such may include certificates and licenses and possibly registrations.

 

How do I pay Taxes and Duties when clearing Customs with a Broker?

 

Once the paperwork has been completed and you are required to pay the fees.

Based on your agreement with the customs broker they can pay or request you to make payments.

The customs broker may take care of the fees which you will be required to pay in total once you receive the shipment.

The customs broker will issue you with an invoice containing all the charges incurred.

The invoice will cover taxes, duties and other fees applicable. You will be required to pay for the invoices based on your terms e.g. 15 days.

Can I use different Customs Brokers Depending on the Mode of Transportation or the Location of the Entry?

 

It is very important that you use one customs brokers for a smooth operation.

Find out the number of ports of entry your cargo may need to pass through.

Choose a customs broker who has offices in all those ports of entry.

Having a customs broker with one only will mean that they need to hire other customs brokers in other ports.

This is a risky move as it exposes your cargo to loss and errors during shipment.

Choose a customs broker that is a full house.

This means they have all the services you need in one place including transportation of cargo.

When shipping via Courier, is it Recommendable to use the Courier Brokerage Services even though I use a different Broker for my Air and Sea shipments?

It is recommendable that you use the same customs broker for all your engagements with Customs and Border Protection.

If you are shipping using a courier, it is still necessary that you use your customs broker to conduct business for you.

Using one trusted customs broker helps you organize your business and solving issues that may arise becomes easy.

Are there Restrictions on what Kind of Goods Customs Brokers can Clear?

 

Customs brokers are supposed to help in the clearance of all type of goods.

It is expected that they have the knowledge of how the systems work and the charges.

However, it is not the case that they will understand every aspect of the goods being shipped.

Most of them are specialists in different fields.

It is important that you choose only the customs brokers that understand the field in which your cargo falls.

This is because changes keep on occurring across different sectors and only those associated with the sector may be informed.

If your customs broker is not an expert in the sector your shipment falls in, you may find challenges complying with the laws affecting your goods.

How long do Brokers take to clear Customs?

 

Typically, it can take customs brokers not more than 24 hours to clear a shipment.

However, it may take longer than expected going to days or weeks before goods are inspected.

Your customs broker should advise you on what is being done, when and how long it may take.

If the shipment is selected for customs exam, for example, it may take much longer.

How do I set up an Account with a Customs Broker?

 

The process of setting up a customs broker account is not very complicated. It involves the following steps:

• Filling of an account application-This is your basic information
• Completing the account questionnaire-This is to determine whether there is any relationship between you as the importer and the exporters
• Creating an account profile-This will list your billing information, contact information and the payment terms.
• The signing of the customs power of attorney-This is to give your customs broker the power to represent you.
• Filling the Importer Security Form (ISF)
• Compiling your Importing paperwork
• Setting up the customs Broker account

 

Can a Customs Broker Research Previous Customs Entries so as to Determine Compliance and avoid Exposure to Extra Duties or Penalties?

 

Your customs broker has to keep you in a safe position with the customs.

This means that researching your past customs entries will help guard you against unnecessary fines.

Once the customs broker digs into the history of your customs records, they will advise you on the best step to take.

They will forecast the fees and taxes that you may be charged whenever you import in future.

It will also help them understand the kind of relationship between you and the customs officials.

The most important thing is to find out any mistakes that may have been committed in the past.

These are the mistakes that have the potential of haunting you later in future.

It is upon the customs broker to ensure you don’t fall into trouble with the customs.

In any case, they will end up losing business if they expose you to losses.

Which is Better Between a Customs Brokerage Company and an Independent Customs Broker Agent?

 

A customs brokerage company will always have a higher chance of being chosen to represent a company for a matter to deal with customs.

An individual customs broker may not have all the necessary assets required to handle all your needs.

An established customs Brokerage Company is easier to vet based on the volumes and satisfaction rate experienced by their clients.

They can also serve as an all-in-one shop for your needs including transport and warehousing.

The main reason why you should go for an established customs brokerage is when you have to deal with several ports of entry.

That will mean that you will need a customs broker in every port.

A customs brokerage company will have offices across various ports.

This means that all your shipping needs are handled from a single office that is closer to you.

What are the Steps to Customs Clearance with a Customs Broker?

 

There are four steps that are followed when you are shipping through a customs broker.

They are:

Verification of Paperwork

At this stage, a customs officer will verify your paperwork to ensure that everything is completely and correctly entered.

All international shipments are required to have commercial invoices.

After the verification exercise is complete, the document will indicate the shipper and the contact details of the receiver.

The airway bill number and the export date must be indicated on the shipment.

Checking by Customs Officer

A customs officer must verify the applicable fees on your shipment.

The fees will depend on the value of goods, their type and the laws of the country.

In case the value of the cargo is more than the tax bracket, the customs officer must check if the duties and taxes have been paid.

Taxes, Duties and Payments

The customs official will request that any outstanding duties and taxes be paid. There are two payment options.

You will have the Delivery Duty Unpaid (DDU) and Delivery Duty Paid (DDP). If the shipment is labelled DDP, it means that the duties and taxes have been paid for.

For DDU, the process can prove to be expensive since brokers will charge different charges.

You will also be charged storage, late payment fees, brokerage and other fees which will ultimately affect your shipment fee.

Shipment Release

After all the duties and taxes have been paid, the shipment is then released.

From here, if the taxes, duties and all the paperwork were done properly, the shipment will be released to their final destination.

Do Customs Brokerage Services cover both Importing and Exporting Goods?

 

Customs brokerage services cover both importation and exportation of goods.

They are licensed to assist traders in all matters to do with their international trade.

Whether you are moving goods inside the country (Import) or outside the country (export), you may need a customs broker.

Having one customs broker for both imports and exports can help ensure that you make your work easier.

Can a Customs Broker Assist with any Corrections or Duty Drawbacks to Customs Entries?

 

A customs broker is supposed to assist you with any matters to do with the customs.

They are supposed to guide you on all the paperwork and help you avoid any mistakes that may otherwise be costly.

The Customs broker should help you with all corrections and duty drawbacks that occur during the process.

What are the Risks of using Customs Brokers for Customs Clearance and How do I avoid them?

 

One of the risks of using a customs broker is the loss of touch with your shipment.

Once you choose to work with a customs broker, you entrust them with every process necessary.

That means you do not get to feel your goods along the supply chain other than the information you get.

To be safe, always ensure you work with a customs broker who is not only licensed but have the importer in mind.

They should communicate timely and in details.

Another risk is the loss of goods and financial losses arising from fines. Delays may also lead to financial losses thus affecting your business.

You should get the latest reviews regarding a customs broker to make sure you settle on the best.

Work with a knowledgeable customs broker and have experience handling goods similar to yours.

This makes sure you are safe from errors arising from the customs broker being uninformed.

At Tj chinafreight, we will help you with all your shipping needs from China to any global.

Contact us now for all freight forwarding services from China.

In this guide, you will find all information you need about co-loader.

So, if you want to learn everything about co-loader read this guide.

Who is a Co-Loader?

A co-loader is a third party who transfers consolidated cargo to another carrier.

Depending on the circumstances, co-loader can either be a consolidator or a freight forwarder. The third party is usually a freight forwarder.

The third-party pays for the process of transferring the consolidated cargo.

What does a Co-Loader do?

The primary function of a co-loader is to consolidate cargo. This is usually LCL cargo which the co-loader consolidates to fill a container.

A co-loader must search for a consolidator or a freight forwarder. Such a consolidator or forwarder should handle the same goods as your co-loader.

This is to enhance the safety of your goods. The last function is to transfer the shipping rights to either the consolidator or freight forwarder.

This facilitates the shipping process to your destination.

What is Consol Goods?

When you purchase goods that cannot fill a container, your forwarder will consolidate them with other shippers. The consolidation process helps in filling a full container before the shipping process begins.

These goods are consol goods and are usually of the same characteristics in packaging and palletization. This helps in their safe shipping to your destination.

What are the benefits of Co-loading in International Shipping?

Co-loading has various benefits to the different parties involved in international shipping. These parties are shippers, recipients of the goods, and the environment.

Using co-loading has the following benefits if you are a shipper

Shipping Cost

A co-loader consolidates all goods before handing them to a forwarder. The effect of this is you pay for the space that your cargo occupies within the container.

This cost is less compared to the cost of hiring a whole container. You, therefore, pay less for shipping your goods.

Safety of Goods

The consolidation process involves goods of the same packaging procedure. This reduces damage to your goods hence ensuring there is a safe shipment of your cargo.

Reduces Shipping Lead Times

Consolidation involves your co-loader packing goods heading in the same direction together.

This facilitates the unloading process at the various destination ports.

This reduces the shipping lead times due to the faster unloading of goods. You can therefore plan for your shipment in advance.

The main benefit you expect as a recipient when using co-loading is it helps in reducing your inventory. This is because you can estimate the duration to expect your goods and the stock you have.

You don’t have to stock up for fear of the late arrival of your shipment.

To the environment, co-loading helps in reducing carbon emissions by reducing the number of shipments. This is by consolidating several goods into one shipment.

What is Co-loading in Shipping?

Co-loading in shipping is the process of consolidating goods from different shippers to fill a container. When the container is full, the co-loader hands it to either a vessel operator or a freight forwarder.

How does Co-loading work?

The co-loading process starts when you contact your co-loader. They are responsible for reserving a space on the shipping container for your goods.

Once you have contacted them and they have your goods, they search for other shippers and consolidates their goods with yours.

This process continues until they fill a particular shipping container.

The next step is handing the container either to a freight forwarder or a shipping vessel. They do this by paying a fee for shipping the container.

The fee varies depending on the size of the container and other factors.

What is the role of Co-Loading Freight Forwarding?

The function of co-loading in freight forwarding is the consolidation of various goods to fill a container. This facilitates the shipping process while reducing the overall cost.

By consolidating the goods, they help in loading a shipping vessel hence reducing the shipping time.

Co-loading also helps in lowering warehousing costs since your co-loader consolidates your goods immediately you contact them.

This reduces the overall cost of shipping which reflects a lower cost of the goods. Through co-loading, the customs clearing process is fastened.

The co-loader presents the goods to the customs authority, and you submit the original documents hence facilitating customs clearance.

Is Co-Loading similar to LCL and LTL?

Yes. Co-loading is similar to LCL and LTL.

These methods intend to fill a container before shipping starts. A co-loader or a freight forwarder can carry out the loading processes under LCL or LTL.

How do I pay Charges owed to the Co-Loader?

The choice of the payment method to use on your co-loader depends on the agreements you have with them.

Standard payment methods that you can use are; letter of credit and cash payment.

What is the difference between Co-Loader and Freight Forwarder?

The main difference between a co-loader and a freight forwarder is the handling of the goods.

A co-loader usually consolidates the goods and hands them over to a freight forwarder.

A freight forwarder can choose to consolidate the goods or hire a co-loader to do that on their behalf.

In essence, a freight forwarder can be a co-loader, while a co-loader is not necessarily a freight forwarder.

How and where does a Co-Loader get Loading and Discharging Rights?

A co-loader gets the loading and discharging rights from a vessel operator or carrier.

They get these rights after paying for slots that are available onboard the particular vessel.

Is Co-Loader in Ocean Shipping and NVOCC the same?

Yes. A co-loader and an NVOCC are the same.

This is because they don’t operate their shipping vessels. They instead hire space in shipping vessels from where they ship their customers’ goods

Most co-loader and NVOCC have their container where they load their customers’ goods before shipping.

However, there is a freight forwarder who acts as a co-loader, and they own their vessels.

Do Co-Loaders Control Vessel Operations at Shipping Ports?

No. co-loaders do not control vessel operations at shipping ports. They only have the right to load and unload from these vessels, which they get after paying.

Does Co-Loader mean carrier?

No. a co-loader is a party whose job is to consolidate cargo to fill a container.

A co-loader can either be a consolidator or a freight forwarder. A carrier is a vessel that carries various containers from the port of origin to the port of destination.

A carrier can either be an aircraft, a ship, or a truck.

Is Co-Loader the same as Slot Charterer, or is there a difference?

No. there is a difference between a slot charterer and a co-loader. A slot charterer usually has their equipment, including the shipping vessel.

A co-loader does not own a shipping vessel, and their function is to consolidate the goods before handing them to either a carrier or a freight forwarder.

Why is the Original Bill of Lading important in Co-Loading?

An original bill of lading is vital in co-loading since it indicates the nature of goods, the ownership, and the quantity.

It helps in understanding the proper procedure of handling your goods during the loading and unloading process.

You must present this document to your co-loader before they accept the receipt of your goods. The bill of lading helps in calculating the charges to levy on your goods by your co-loader.

Suppose I don’t have any Original Documents Including Bill of Lading; What should I do?

Failure to have proper documents leads to the customs not releasing your goods once they arrive at the port of destination.

You should therefore contact your shipper for these documents before heading to the customs.

The disadvantage of customs holding your goods is the warehousing fee increases which means you have to pay a higher amount.

Delay can also affect the demand of your gods since your customers can start looking for alternatives.

What does ‘Back-to-back’ mean in Airfreight?

Back-to-back air shipping refers to a freight forwarder booking space on the air carrier for your goods only.

The shipping process under back-to-back involves the use of a single master air waybill.

Back-to-ack shipping reduces damage risk to your cargo while ensuring timely delivery.

However, it is a costly option for shipping your freight.

Which is Better Between ‘Back-to-back’ Transportation and Consol (C-Loading) for Air Shipments?

The choice of which is better between back-to-back shipping and consol shipping depends on your preference. Each of these methods has its benefits and limitations.

Back to ack method involves shipping your goods under one master air waybill.

This implies you’re your forwarder books space on a carrier to ship goods exclusively belonging to you.

The advantage of this is it reduces damage risk on your goods during the shipping process.

It is also timely, which helps in reducing the lead times for your goods.

However, it is an expensive method to use since you have to pay for the entire space that your forwarder books.

This is so especially when your goods cannot fill the space.

Consol option involves consolidating goods from various shippers before the shipping process starts. Each shipper has their house airwaybill.

It is a cost-effective method of shipping since you only pay for the space that your cargo occupies. The advantage of this method is the destination of all the consolidated goods is the same, which reduces the loss of goods.

However, the chances of damaging your goods are high, meaning you have to counter-check the goods when unloading.

Will I have to pay Import Duty and VAT for Consol Shipments?

Yes. You have to pay import duty and/ VAT for consol shipments.

This is because consol goods are just like any other imported goods which attract a specific levy.

The amount to pay depends on various factors such as the volume of your cargo and the nature of the gods you are importing.

Apart from the Co-Loading Fee and Import Duty, what other charges do I have to pay for Consol Shipments?

Other charges that you should expect for your consol shipments are:

Insurance Fee

You must pay this levy as it covers loss or damage to your goods while in the hands of your co-loader. Given the nature of loading and unloading your cargo y the co-loader, you must pay this charge.

Administration Fee

Your co-loader is responsible for handling your goods before they hand them over to a 3PL or a forwarder.

During this period, they should administer authority over your goods, and you have to pay for them.

The administration fee covers things like the protection of your goods, the loading and unloading processes.

Documentation Fee

There are various documents that you have to sign before handing your goods to your co-loader. These documents indicate that you are allowing your co-loader certain rights over your cargo.

You, therefore, have to pay for these documents before they accept your goods.

Service Fee

Different co-loaders offer varying services for goods. For instance, some offer packaging and labeling of your goods before loading.

For special goods, such as perishables, you have to use special containers.

These services attract a specific charge depending on your co-loader, which you have to pay.

How are Co-Loader Rates determined?

There are various determinants of co-loader rates depending on multiple jurisdictions. Some of these determinants include:

Size of the Cargo

The cost of consolidation depends on your cargo size and the space that it occupies on the container. The higher the volume, the more you are going to pay.

Services

There are different services that your co-loader can offer to your cargo. for instance, packaging and labeling your shipment as per the shipping procedure.

Packaging can be problematic, especially if you don’t know the type of material to use. Using the wrong material can add up the overall shipping cost for your cargo.

You, therefore, need some of these services which your co-loader can offer. However, these services come at an expense which you have to cover.

Demand

Shipping depends on the seasons and demand for your various goods. During the off-peak seasons, most co-loaders offer incentives to lower the shipping cost.

This means you pay less during the off-peak seasons. However, during the peak season, demand is higher, which results in co-loaders increasing their prices.

Documentation Fee

International trade involves several documents which you have to sign to authorize the shipping of your cargo.

For instance, when you hand your co-loader the goods to handle, and you have to sign an authorization document.

These documents come at a fee which you have to pay your co-loader.

Government Regulations

This factor depends on the rules governing a particular geographical location.

There are levies and taxes in certain jurisdictions that you have to pay your co-loader before handling your goods.

What Paperwork is needed to Customs clear my Consol Shipments?

Consol shipment is like any other import, which has to go through the standard customs clearance procedure.

You, therefore, need to have standard custom clearance documents before you receive your goods.

These documents include:

• Certificate of origin
• Bill of lading
• Commercial Invoice
• Insurance certificate
• Letter of credit
• Packing list
• Certificate of conformity

However, you can expect the customs documents to request additional documents if you are shipping restricted goods. This varies depending on your port of destination.

What are the Criteria for Co-Loading Shipments?

The criteria for co-loading shipments facilitate their safe shipping process. Such criteria should consider the following:

Product Compatibility

Co-loading involves packing goods with the exact requirements in one container. This facilitates proper handling of the goods and ensures the goods are in the best condition on arrival.

For instance, you can consider refrigerated goods to be in one container since they have the same conditions.

Palletization is another compatibility aspect that you can consider.

Goods that require palletization can be in the same container for adequate packaging.

Container Packing

Co-loading works best if you can ship all your goods in one container. This reduces the overall shipping cost compared to shipping in different containers.
Before co-loading, you can check on the nature of your goods and f they can fit in one container.

Geographical Destination

You have to align all the goods under co-loading to head in the same geographical route.

This helps in the timely and safe loading and unloading of your goods.

While packing such goods, those whose destination is near the port of origin should be packed last. This facilitates the unloading process.

Scheduling

You should align the arrival of the goods in a particular sequence for effective loading. The loading process should consider the unloading dates for the various products.

Best practice involves those goods whose destination port is last arriving first for loading. This allows for unloading goods whose destination is near the port of origin.

Should I take the DIY Approach for Co-Loading or hire a 3PL?

The choice of which approach to use depends on your preference.

However, both DIY and hiring a 3PL have their benefits and limitations.

A DIY approach is best suited for larger organizations that understand the shipping process. Such organization can leverage their data and networks to find a suitable partner for co-loading.

DIY yourself approach can be time-consuming and expensive if you are a small organization. If your organization cannot match the resources required for a DIY approach, you can use a 3PL.

Involving a 3PL is cost-effective and time-saving. This is because your only responsibility is to find a potential 3PL and leave the rest for them.

Most 3PL have existing networks and shippers who want to use their services. This makes it easier for them to operate the co-loading process on your behalf.

The only problem with this is you have to select a 3PL who can effectively handle your shipping.

Do I need to change my Processes and Systems to get started Co-loading?

Different factors determine the choice of whether to change your processes before co-loading. For instance, the type of co-loading and the destination.

Active co-loading requires you to change your processes, while passive co-loading does not need you to do so.

However, it would help if you inquired from your co-loader in advance to avoid issues during the shipping process.

What are the Drawbacks of Co-Loading?

The main drawbacks of co-loading are:

Nature of Goods

Co-loading is not ideal for all goods, which limits its use. for co-loading to be effective, you have to check on the nature, size, and dimensions of the goods.

Goods that are not of the exact dimensions, nature, or size are not suitable for co-loading, limiting their use.

Complicated Scheduling

As a co-loader, you have to make prior arrangements for the goods before shipping. This involves making several contacts for goods to fit your container.

You also have to check on the availability of these goods.

If possible, you have to reschedule the timing for all the goods to coincide with the shipping date.

This can be tiresome and requires patience, especially if the goods have varying arrival dates.

Delayed Shipping

Delayed shipping is a result of rescheduling the co-loading process. This can imply the arrival schedule of your goods.

Such an arrival delay can affect the demand for your goods.

What Type of Shipments is suitable for Co-Loading?

Co-loading is effective if the goods are of the same handling procedure. This is in terms of packaging and loading.

Such a procedure helps in minimizing damage to the goods and effective utilization of space on the container.

You can consider co-loading for goods which are of the same size.

These goods are easy to maximize loading on a container. This reduces the overall shipping cost while offering safety.

You can also consider co-loading goods from the same industry.

This is because these goods have the same handling process, and you can also maximize the space on your container.

Other types of goods that you can co-load are goods that are heading in the same geographical route.

When packaging these goods, you start with those whose destination point is further away from the port of origin.

This helps in the safe loading and unloading of goods, which is vital in enhancing the safety of your goods.

What are the Different Variations of Co-Loading?

The different variations of co-loading are:

Passive Co-loading

This type depends on the coinciding of different shipping factors like time, direction, and shipment size.

If the various cargoes coincide with these factors, then your co-loader loads them in the same container.

The main limitation of this type of co-loading is the availability of goods that align with the shipping factors of your goods.

This can lead to a delay in the shipping of your products,

Active Co-loading

This type involves your co-loader understanding and planning in advance for co-loading.

This is because there is a specification for the shipment of particular goods on a specific date.

Active co-loading is cost-effective and predictable.

This is because you are sure of the shipment of your goods hence reducing the warehousing cost.

How does Co-Loading Impact my Supply Chain?

Co-loading has different impacts on your supply chain, including:

Reduce Inventory Cost

Co-loading offers a quicker shipping option for your goods. This is because your co-loader consolidates the goods before handing them for shipment.

Faster shipping reduces the lead time hence which reduces the warehousing costs.

Reduces Overall Price

Co-loading helps in reducing the shipping cost. This is by paying for the space occupied by your cargo in a container.

Reduction in the shipping cost translates to reduced prices of your imported goods

Is Co-Loading with more than two Freight Forwarders suggestible?

Co-loading with more than two freight forwarders is not an ideal option. You have to pay for the related charges, which can be expensive.

You can get incentives if you choose a single freight forwarder. The best option is to shop around for an ideal freight forwarder before engaging them.

How do I find a suitable Co-Loader for my Supply Chain?

You should consider the following factors when finding a suitable co-loader for your supply chain:

Co-loader Rates

Different co-loaders offer varying co-loader rates, which you must factor in before you engage an ideal one.

You can request different quotations before deciding on which co-loader to select.

When selecting a co-loader with the best price, you should also check on the quality of their services. This is because safe handling of your goods is critical.

Services

The services of different co-loaders differ depending on the needs of the market.

For instance, there are co-loader who will accept your goods after you have packed them while others offer to do this for you.

An ideal co-loader should offer you all the services you want for the safe shipment of your cargo.

Such services include finding space on the container, proper packaging of your goods, and finding the best forwarder.

Certified

You need to check on the certification aspect of your co-loader before engaging in business with them. This is to eliminate chances of working with a rogue or fake co-loader.

Certification also helps in knowing where to start in case there is a dispute to resolve.

Network

Networking is critical in international shipping, especially for a co-loader.

They should be in a position to have a good network of freight forwarders who can assist in shipping your goods to your destination.

Such a network also helps in finding the best price for your shipment.

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If you have any question about customs entry, you will find the answer right here.

Because this guide covers everything you need to know about customs entry.

Keep reading to learn more.

What is a Customs Entry?

A customs entry is a form or a document that is mandatorily presented to the customs authority in regulated country.

This form scrutinizes your shipment in terms of the value, classification and origin of your shipment.

As a result, the findings indicated in this form allow for calculation of duty payment.

Also known as a customs declaration, this form is applicable upon importation or exportation of goods and services.

When is a Customs Entry required?

A customs Entry is required upon entry and exit of goods from

one country to another.

As a result, this form is required upon the request by the customs authority of the country exporting or importing.

What Types of Customs Entry are there?

There exist two types of customs entry. The formal and the informal customs entry.

The formal customs entry caters for goods that must possess an entry or surety bond.

This is because the goods exceed a certain amount of dollars designated by the customs authority.

The amount displayed for these goods should, at the very least, total up to 2500 dollars. Usually these goods are for resale purposes.

The entry bond on these goods seeks to ensure that there is adherence to duties and compliance with customs requirements.

An entry bond has its advantages especially to the well-established importers.

With these bonds alongside customs, the importer can acquire his goods without tax fee, duty fee and other required fees.

The other type of customs entry is the informal customs entry.

Unlike the formal customs, informal customs` goods do not require an entry bond.

This is because, goods under this category do not exceed the bare set minimum value of $2500. However, this amount comes with variations subject to the laid principle for informal entry.

For example, not all goods under $2500 are subject to an informal entry. This exception majorly covers the textiles goods.

For these goods, a value worth $250 is treated as a formal entry.

Another variation under the informal entry customs is the ‘section 321’.  These section allows for goods under the value of $200 to enjoy duty free transport.

However, the goods must be belonging to a single individual and must be transported within a day.

Moreover, in most cases, goods under the informal entry customs are directly for consumption purposes.

What do you Write in a Customs Entry?

The following information is required in a customs Entry form;

• Name and address of shipper and consignee
• Origin of the cargo
• Destination of the cargo
• The type of transport to be in use by the cargo
• Description of the goods alongside of a commodity code
• The value of the goods that is the cost, insurance and freight values. (CIF)
• The weight of the goods
• Customs classification number

What is Customs Entry number?

A customs entry number is also known as the entry processing unit (EPU). This number is usually assigned by the filer.

The number is strictly intended for a particular merchandise. Hence cannot be used again on another cargo.

It makes it easier for the customs authority to identify your cargo.

How do I locate my Customs Entry Number?

In most cases the number is usually at the top corner of the right hand side of a customs entry document.

Thus, it is important to be in the possession of a copy of the customs entry document as well. Sometimes it is designated as an entry processing unit (EPU).

What is Section 321 in Relation to Customs Entry?

As earlier, outlined, section 321 is a legal outline, that intends to explain a variation in the informal entry customs category.

Section 321 allows for goods valued at $200 or less to enjoy duty free transport of the merchandise.

This is with the exception that the goods are being transported by a single person in a single day.

What is a Customs Entry Fee?

This is the fee charged usually by the customs authority that is processing your customs entry requirements for your goods.

Additionally, the fee excludes the duty fee, freight fee and insurance fee.

The customs entry fee is usually based on the type and value of your goods under shipment.

Who Completes the Customs Entry?

The customs entry is under the mandate of the owner of goods or the customs agency helping to complete the form.

This is because most of the information in a customs entry document will be provided by the owner of the goods.

Upon completion, necessary fees are paid then the customs authority takes over.

What Happens if the Wrong Customs Entry is used?

You are bound to experience delays in your shipment.

A wrong custom entry entirely sabotages the shipment you are in possession.

As a result, the customs entry authority makes a follow up to confirm if there was a mix up in the customs entry.

Additionally, in the event the wrong customs entry is found to be intentional, penalties will follow suit.

An accountability of the wrong customs entry must be established.

What is the Difference Between a Customs Release (CBP Form 3461) and a Customs Entry (CBP Form 7501)?

A customs release form, the CBP 3461 is intended to hasten the release of your merchandise. The form gives instructions on the grounds in which your cargo is being released.

For example, the CBP 3461 form may instruct the merchandise to be released for further examination.

The document is made available electronically unless otherwise, that is need for hard copies arises.

Upon the release of your goods, the customs entry (CBP form 7501) is prepared. Here your goods are checked against duty and tax payments.

The CBP 7501 acts as a form that gives a depth outline of the duties and tax adherence of your shipment.

Is Customs Entry the same as Customs Declaration?

A customs entry and a customs declaration bare the same information for shipments.

As a result, they are relatively different from each other.

Sometimes a customs entry is regarded as a customs declaration.

They both give a clear outline of the goods under shipment and outline the statistical background of the merchandise.

Additionally, proof of tax compliance of the goods in shipment is as well highlighted in these forms.

What is the difference between Origin and Preferential Origin in relation to Customs Entry?

Origin defines the place of manufacture of the goods. Origin is a key factor when it comes to determining customs tariff.

As a result, origin plays a major role in taxation, regulation, obligation and setting standards.

Preferential origin outlines an agreement between two countries concerning export and import of goods.

Preferential origin comes with benefits of reduced or even zero duties based on the agreement put forward between the countries.

Additionally, presence of uniform standards can highly promote trade between the partakers of the agreement.

However, preferential origin comes with a list of demands and obligations that member countries have to adhere to.

For example, the goods must incorporate a certain percentage of raw materials from the country of origin.

Or the country must be under the registration of an official database.

These obligations and formalities are meant to manage the level of competition in the market.

What are the Effects of a False Declaration of Origin of goods in a Customs Entry?

In the event that the information concerning the origin of goods is false, a whole reassessment is bound to happen.

This will inconvenience you in terms of time consciousness of the need of goods.

To avoid such delays due to reassessments it is important to double check the origin of your goods.

The major role of customs authority here will be to check for the origin of the goods and the type of goods.

The origin will help in tariff calculation and determination.

These two major concepts work to ensure that unfair competition is eliminated from the market.

False information attracts a penalty of 3 years with a possible extension of 10 years following any fraud suspicions.

Additionally, accumulated errors extending to three or four years will significantly have a negative impact on your financial status.

Customs duty penalties can have a significant impact on the selling price of your merchandise. In the events the goods have already been sold, you will suffer a reduction in your cost margins.

It is important to be careful in delivering correct information, especially if you are dealing with international trade.

What are the Penalties for Contravening of Customs Entry Rules and Regulations?

Penalties in customs entry include double fees of either taxes or duty fee.

Customs rules and regulations define a set of rules that must adhered to.

However, cases of fraud and deviance are eventually bound to happen, especially to importers who seek to evade charges on goods.

As a result, customs authorities and agencies have put in place penalty measures in the event one misuses the rules and regulations put forth.

In the case of a detected violation, an ex-post reassessment is set to commence. This involves review of previous imports.

Additionally, in the event an anomaly is detected in the documents submitted to the agency, an immediate reassessment happens on the goods.

Moreover, the customs authority has put forward a limitation period of 5 years to recover any incidences of custom debts.

This period is set to recover duties and taxes evaded.

Furthermore, false declarations attract a contravention of 3 to 6 years to allow for legal proceedings to address the offences.

What are some of the Methods which Customs uses to Assess Duty and Taxes?

Duty and taxes is a core activity that the customs entry mainly checks against the goods under shipment.

As a result, various methods have been put in place to ensure that calculation of the duties and taxes are adhered to.

These methods include;

• Customs classification and valuation report.

Here the value is made available in the report after an assessment exercise.

• The use of national tariffs to help in the taxations.

These helps to specify the tariff on each item on shipment.

• The use of rates of duty per each tax type.

Any additional charge is defined in the Tariffs.

Can I Disagree with Tariff Values given by Customs?

Yes, you are legally entitled to disagree with tariff values outline by the customs.

Sometimes, the customs authority duty calculations may vary with the clients. In this case, wrong calculations are bound to happen.

If the authority proves adamant to have wrong calculations, you may forward the matter to commissioner-general for a review.

Moreover, if the commissioner-general decides to overlook the matter carelessly, you are permitted to seek a court hearing.

However, these lengths require hard evidence of wrong calculation of duty charges.

Is Customs Entry Filling Mandatory?

Yes, custom entry filling is mandatory. The customs entry filling is applicable to all importers to the US. The filling should take place earlier before the arrival of the shipment.

Filers are allowed to send the entries days before the actual day of arrival of the goods.

The US customs and border protection responds within 5 days before the arrival of the shipments.

US importers have the freedom to self-fill for their entries.

However, for foreign importers on record, there is a restriction that disallows them from self-filling entries.

Do US importers require an IOR number for Customs Entry filling?

Yes, US importers should possess the import on record (IOR) number.

The number is applicable to help in a range of processes during import.

The IOR number allows for easier identification of entries of the importer. The entry number is usually indicated on the CBP 7501 form.

What are the dos and don’ts of Customs Entry filling?

Custom entry filling procedure requires a lot of discipline and adhering to customs rule and regulations.

Ensure you fill out all the information required by the authorities.

This includes;

• Name and complete address of sender
• Complete address and name of receiver
• Item description (if there are several different products in the same package, note them all separately)
• Quantity of items
• Value of each item
• Weight and dimensions of package
• Date of sending
• Invoice number
• Terms of payment
• Procedure to follow for non-deliverable parcels

Additionally, countries come with different restrictions concerning export and import goods. For instance, there are countries which require an Automated Manifest System (AMS), which is US, Canada, Mexico and Philippines.

All countries in the EU require an Entry Summary Declaration.

Different countries thus have different restrictions concerning import and export, ensure to adhere to these restrictions.

Moreover, there are certain things you should avoid when dealing with a customs entry form.

Ensure you do not provide false information about the details of your shipment.

The customs authority has well trained staff who know how to detect and handle such cases of infidelity.

Additionally, make sure you don’t give wrong information concerning any hazardous cargo. Ensure the product description is thus up to task.

Do not be careless when attaching the documents. Ensure the barcodes are easily visible to ensure faster tracing of the merchandise.

Correct packaging of your cargo should be truthfully indicated, otherwise this might be considered as fraud. The penalties are grievous.

Always be intentional to ensuring you documentation is up to task.

This will help you avoid mishaps such as delays due to the need for further verification from the customs authority.

Can I fill out Customs Entry Forms online?

Yes, the forms are made available electronically, hence once you finish, you can email the form to the required customs authority.

With the new technology, handwritten or hardcopy forms are rarely being incorporated according to numerous customs authority or agencies.

Which Countries need Customs Entry?

Numerous countries across the globe require custom entry procedures to take place.

However, countries within the EU do not require any customs entry regulations.

It is important to confirm with the customs authority of exporting or importing countries on the regulations put forth for customs.

What is Customs Entry Acceptance Advice?

A customs entry acceptance advice is a form that is meant to show an import entry has been completed successfully.

The form also regarded as an E2 form, bears the following information;

• Customs entry number
• Clearance date and time
• Consignee
• Summary of freight
• Insurance and VAT charges,
• Breakdown of each item
• Customs value
• Item price.

What is a C88 Certificate?

The C88 certificate is a single administrative document which bears the details of your goods and how they are moving.

It acts as a proof of authorization to the country of import or export.

The certificate plays a major role in assisting in the declaration of imports, exports, transits and community status declaration.

What types of Shipment require a Customs Entry?

Shipments with restricted goods mandatorily require customs entry. These may encompass

• Alcoholics and beverages
• Animal products
• Plants and animals
• Hazardous chemicals and gases and other restricted goods in the country of import or export.

As a result, it is important to check with the country of important and export and be aware of the type of goods that are on restriction. Moreover, you can check on goods that require a customs entry.

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In this guide, you will find all information you need about declared value coverage.

So, if you want to learn more about declared value coverage, read this guide.

What does Declared Value mean?

There are two meanings of declared value which are clearly explained below:

1. It refers to the value that is placed on imported goods by a given importer. This value of goods is declared for customs clearance at the entry port and is used to establish the duty amount to be paid on imported goods.
2. It can also mean the amount a shipper stated to a given carrier as the worth of their shipment. The carrier will be liable to compensate the shipper based on the shipment’s declared value if lost or damaged in transit.

What is Declared Value Coverage in Shipping?

In shipping, declared value coverage is a type of loss or damage coverage that raises the financial ability of the carrier.

Declared value coverage aims to increase the financial capacity of the page to ensure it matches the value of declared cargo.

It is important to note that declared value coverage is not cargo insurance. It is limited to the period whereby the cargo has a single carrier.

What is the Purpose of Declared Value Coverage?

Purposes of declared value coverage include:

• Ensuring speedy clearance at customs.
• Getting better shipping value from carriers.

How does Declared Value Coverage work?

Declared value coverage applies when the damage or loss is due to the negligence of the carrier.

The shipper will have the responsibility to prove that the carrier was negligent.

Is Declared Value Coverage the same as Marine Insurance?

No, declared value coverage is not the same as marine insurance.

Declared value coverage is subjected chiefly to exclusions, policy limits, deductibles, and warranties which are not well elaborated to the shipper.

On the other hand, Marine insurance takes care of a shipment throughout its entire journey from the pickup to the delivery point.

It will ensure that the shipment passes across multiple carriers and transport modes regardless of having a loss or damage negligence of the carrier.

Marine insurance provides door-to-door protection regardless of the carrier, but this is not the case with declared value coverage.

Marine insurance tends to pay less regardless of whether the carrier’s negligence has been proven.

On the other hand, declared value coverage would pay in full if it has been affirmed that the carrier was negligent.

Declared value coverage does not pay for damage or loss which occurred outside the control of the carrier.

Marine insurance may cater to damage on loss that happened outside the carrier’s power depending on the parties’ agreement.

Marine insurance pays the shipper for the total value of the cargo, inclusive of freight and related costs.

On the other hand, declared value coverage pays the shipper up to the declared value of their shipment.

The declared value does not pay to expedite the replacement of goods.

On the other hand, Marine insurance can pay to accelerate the replacement of goods depending on the agreement between the parties.

What is the Difference Between a Shipment’s Declared Value and Sum Insured?

Declared value boosts the limits of liability standards for an increased rate of freight.

It does not alter the terms of the bill of lading because similar limitations and exclusions apply.

Sum insurance refers to the level of coverage in general policies of insurance.

It is the maximum liability that the insurance company will undertake for compensation in case of loss or damage.

The shipments declared value and the sum insured value are often confused, and if these values are incorrect, there might be problems of underinsurance.

How do you calculate Declared Value?

The declared value of a shipment can be calculated, which are:

• By use of the cost price: this should be the cost at which you purchased the products for customs declaration.
• Use of retail price: for these shipments, the value should be that which you intend to sell the products.

Customs use the declared value to determine duties and taxes and to clear your shipments.

What are the Limitations of Declared Value Coverage?

Some of the declared value coverage include:

• It is not cargo insurance.
• Declared value coverage is limited only to the period that cargo has a single carrier.
• It only kicks in if loss or damage occurred as a result of negligence by the carrier.
• The shipper must prove that the carrier was negligent for declared value coverage to apply.

How long is Declared Value Coverage suitable for?

It is limited to the period that the cargo has a single carrier.

Declared value coverage only applies to incase damage or loss occurs due to the carrier’s negligence.

What happens to Shipments without Declared Value Coverage?

For shipments without declared value coverage, the carrier’s maximum liability will be $100 for losses or damages at no cost.

Loads that are valued over $100, you may declare a higher value of the item at the transaction time.

You will have to pay an additional charge for the declared value of the given amount.

In case you do not report a higher value, the maximum reimbursement you will receive will be $100.

What is the Impact of Adding Declared Value Coverage to my Shipment?

It is important to note that declared value is not insurance, but it is the maximum liability for damage or loss due to mishandling.

Some of the impacts of adding declared value coverage to your shipment include:

• Adding declare a value to your shipment will make the cost of shipping rise.
• In case you specify a declared value of $500 or more, then the importer will automatically include the direct signature confirmation. In this case, you will not need to select the immediate signature confirmation.
• For shipments that are multi-box, the declared value by the importer will be applied to each box in the entire load.

How do Different Carriers Handle Declared Value Coverage?

They handle declared value coverage as the value of each shipment unit for couriers, and it must be indicated in the paperwork.

It can impact the rates of shipping as more costly shipments will attract higher shipping rates.

Carriers also use the particular value to determine the maximum amount you can recover for your shipping insurance.

It is done in the case that your shipment is damaged or lost during transit.

Many carriers tend to set this value at $100 unless stated differently.

However, do takes this value to be the insurance liability for your shipment as it just indicates your cargo’s financial legibility.

Declared value coverage brings about different impacts depending on the carrier that you use.

Some carriers may use it as the insurance value, while others develop maximum financial liability for theft and loss.

How does Declared Value Coverage Affect Customs?

In customs clearance, declared value coverage is assigned to imported goods by the importer of records.

It is used to determine how much imported tax is imposed on the shipment.

Therefore, you should calculate it well to avoid overpayment or getting into trouble by making a false declaration

.

It is essential to be accurate when declaring the value mostly in i9nternational shipping.

In case customs suspects wrong value declaration, your cargo is held, and they will need proof of purchase to release it.

What is the procedure for claiming Declared Value Coverage?

The procedure for claiming declared value coverage entails:

• The carrier’s liability for loss or damage for each international shipment or domestic package is limited to $100 without a declaration of value.
• The maximum declared value per package is $50,000 per package. The carrier’s liability for loss or damage is increased up to $50,000 by making a value declaration for an additional charge.
• Specific domestic packages are eligible for the enhanced maximum of $70,000, subject to restrictions put in place.
• Declarations whose value ranges between $100.01 and $300 are subject to a charge of about $3.45.
• Declarations of a value above $300 incur a charge of about $100 for each of the total declared value.
• For international shipments with a declared value of more than $, 50,000there is a process of calculating them. You should multiply the total declared value by the rate and determine the displayed value charge for your shipment.
• For cargo tendered to a carrier with a declared value amount of more than $1,000, you must retain a high/value shipment summary. This summary should be signed by the driver and should be provided when requested.
• The charges for declared value are included in amounts that are billed to third parties or receivers.

Does Declared Value of a Shipment include Shipping Cost?

Usually, declared value reflects the shipment cost to the business and is mostly lower than the customs declared value.

During shipping of your package, you will obtain declared value coverage.

Declared value is also an option when determining freight charges. It will also assist in limiting the liability of the carrier for damages, delay, or loss.

Can Declared Value of a Shipment be Zero?

Yes, the declared value of a shipment can be limited to zero for those that do not have a declared value.

Thus, if your load is lost or damaged, the carrier will not be liable because you did not say the deal.

How do you Prove the Declared Value of Shipments?

You should provide relevant documents to prove the declared value for your shipments.

The declared value must be the same as the actual value of your cargo, and the documents should support this.

The declared value coverage of your cargo is the carrier’s responsibility in case of thefts, damage, or loss of your goods.

It will be compensated up to the declared value of your cargo, but the additional declared value may be allowed in consultation with your carrier.

Are all Shipments Eligible for Declared Value Coverage?

Most of the shipments are eligible for declared value coverage as long as they do not violate the carrier’s terms of service.

Packages shipped by carriers are eligible for $100 basic coverage, while some commodities qualify for up to the $50,000 range.

What are the Standard Terms and Conditions for Declared Value Coverage in shipping?

Different carriers possess unique terms and conditions outlining their policies for declared value coverage policies.

It is essential to familiarize yourself with these policies before shipping your cargo, as failure to observe the rules might result in claims denial.

You should specify accurate values before shipment pick up or drop off because proof of value is established at both points.

In case you have questions about declared value coverage, it is always good to direct them to your coverage provider.

Does Declared Value Coverage cover Duty and Taxes?

No, declared value coverage does not cover duties and taxes.

However, customs use the value of declared value coverage to establish taxes and responsibility to be imposed on your cargo.

Is there a maximum value of an item Declared Value Coverage would cover?

Different carriers tend to have different values for declared value coverage.

This value is used to determine the maximum amount you can recover for your cargo if it is lost or damaged during shipping.

Most carriers tend to set the value for declared value coverage at $100, but for others, it can be up to even $50,000.

If your package is not so expensive, then $100 will be sufficient.

You should discuss with the carrier for higher value packages and set a reasonable amount to incur it is lost or damaged.

However, you should not consider this as the insurance liability for your shipment but as just your cargo’s financial and legal ability.

What are some of the things not covered when you Declare Value during International Shipping?

Some of the things not covered when you declare value during international shipping include:

• The shipment is not catered for ”door-to-door”. The declared value is only valid for the period that the cargo is the custody, care, and control of the shipper.
• Does not provide coverage for other losses like ”Acts of God” and any other losses outside the carrier’s control.
• When buying declared value, costs such as packing expenses, freight charges, and forwarding fees are not covered.
• Any shipment without a scan.
• Data stored on any media.
• Bulbs or fluorescent tubes.
• Prepaid letters.
• Articles of unusual value.

What are some common Exclusions and Warranties in Declared Value Coverage?

Some common exclusions and warranties in declared value coverage include:

• Theft may occur when the vehicle is left unattended.
• Dishonesty on the part of some of the carrier’s employees.
• For example, theft of certain commodities, cigarettes, fashion, cell phones, computer memory, apparel, and many more.

What is the difference between Declared Value and Customs Value?

Declared value refers to a declaration to the carrier for increasing the carrier’s limit of liability.

Customs value, on the other hand, refers to affair market value or sales price of your shipment even if it is not for resale.

Customs value serves as an affirmation to customs for establishing the applicable taxes and duties.

What are the Consequences for incorrect shipment Value Declaration?

Incorrect shipment value declaration will result in your shipment being held at the customs. You will then be required to provide your proof of purchase to the regional customs officer for your shipment to be released.

Therefore, it is essential to ensure that you are accurate when declaring the value for your shipment, more so in international shipping.

When should I purchase Declared Value Coverage?

You should purchase declared value coverage after a shipping label is generated and you possess the customs or tracking details available.

How do I pay for Declared Value Coverage?

Charges for declared value coverage can be:

• Billed to the shipper (prepaid).
• Freight collects (billed to the receiver).
• Billed to a third party.

You can pay for declared value coverage using the following methods:

• Wiring money straight to the carrier through an international transfer.
• Use of a broker.
• Transfer of the funds through western union.
• You can use PayPal.

What is a ‘Flat Rate Coverage’ in relation to Declared Value Coverage?

Carriers offer ‘flat rate coverage’ as an alternative to typical report-based policies.

All outbound and inbound shipments are insured on a given rate monthly with no need for reporting your freight to the carrier.

Some of the benefits of the ‘flat rate coverage’ include:

• There is a monthly fixed cost.
• No need for reporting.
• It covers all your shipments, inbound and outbound, domestic and international.
• Has a flat rate that is discounted.
• Claims are processed faster as there is no need to submit shipping reports before a claim is processed.

Are there any special Packaging Requirements for Declared Value Coverage?

Yes, there are packaging requirements about declared value coverage.

Declared value coverage is not available for the following types of packages:

• Items that lack proof of value.
• Additional restrictions are detailed in the policy documentation.
• Live animals.
• Perishable items like flowers and food.
• Gift cards, cash, and any other items that have cash value.
• Plants and seeds.

What Documents do I Need to Provide when Submitting a Claim for Loss or Damage to a Shipment Protected Declared Value Coverage?

Some documents you need to provide when submitting for loss or damage of a shipment protected declared value coverage include:

• Photographs of the Shipment that is damaged if they are available.
• Packaging list.
• The waybill of the shipment that was damaged or lost.
• Commercial invoice of the items in the damaged or lost shipment. Note that if you provide a proforma invoice instead of a commercial invoice, the item is treated as second-hand.

It is essential to provide all the documents within five business days of the delivery date for damage, not on the delivery receipt.

In case the damage is noted on the delivery receipt, you can fill the claim within ninety days.

At Tj chinafreight, we will help you in all your freight forwarding needs from China to any global destination.

Contact us now for all your freight forwarding services.

In this guide, you will find all information you’re looking for about customs exam fee.

So if you want to learn more about customs exam fee, read this guide.

What is a Customs Exam?

A customs exam is the inspection of goods in a container when suspicions arise regarding their content. The customs exam can be conducted through a Tail Gate, X-ray or intensive exam.

What is the purpose of Customs Exams?

The purpose of Customs exams is to inspect what gets into the U.S.

The customs exam is unavoidable.

It is very important for Customs and Border Protection to protect the United States from the entry of contraband goods.

The customs will undertake this measure to ensure that only the authorized goods, quoted value and the indicated quantities are allowed into the U.S.

Every year, a lot of containers going into thousands are held by the customs.

This is after they are examined and found to have goods not allowed getting into the country.

Some of the containers are re-exported back to the countries they came from.

Customs exam can be inconveniencing to the importer but it works for the good of the United States.

What are the different types of Customs Exam?

The customs will normally use three exam types in determining what is entering into the U.S. They include:

X-Ray

The X-rat is also referred to as VACIS or Non-Intrusive Inspection (NII) exam.

The Customs and Border Protection orders containers to be taken through an X-Ray machine located at the terminal.

They then review the images to determine if everything is okay.

If they are satisfied that everything is okay, the container will be released to be delivered.

If they determine that something is not okay, the exam will be escalated to the next exam.

Depending on the port the shipment is held and the container size, the fees will normally range between $150 and $350 for each container.

If the fees are charged per shipment, the charges will range from a minimum of $25 and go up to $100.

Tail Gate

In this custom exam, the container is going to undergo examination at the pier.

The Tail Gate acts as the ‘drive-by’ of the exams.

The customs officer gets the container seal broken, opens the door, and takes a look inside.

If they are satisfied that everything is as it should be, they will release the container to the importer to proceed with the delivery.

If there are reasons to question the contents of the container, then the container will be subjected to the final examination level.

Normally the fees for this exam will range between $150 and $350.

This will depend on the container size and the port where the shipment is being held.

If the fees are charged per shipment, the charges will range from a minimum of $25 and go up to $100.

The Intensive

The intensive exam is commonly referred to as ‘Full Monty’.

This means that the whole container is taken by the truck to the Customs Exam Site (CES).

It is at this CES where the stripping of the container takes place.

A CES is any private corporation that is authorized by the CBP to remove the goods from the cargo and separate every parcel.

They are also allowed to open the designated boxes, prepare the cargo for a visual inspection by the Customs officer.

Where possible they can organize samples for the customs officer.

The fees charged for the intensive exam range from $1,000 to over $2,500.

How do Customs Select Shipments for Exams?

The customs do not reveal what they target when finding out the shipments to hold for customs exams.

However, there are various factors that may come into play.

For example, if you are importing for the first time, you are subjected to a high-frequency inspection than an established importer.

In the same way, some goods, flagged entities and countries of origin have high chances of being picked from the queue for inspection.

This happens mostly with the new importers who are not conversant with the requirements.

How do Customs get Information about Shipments?

While selecting shipments for Customs Exams, the inspectors utilize a targeting system that gives scores on every shipment.

If the shipment scores over a given number, it creates an alarm for further review and maybe a customs exam can be conducted.

The Customs and Border Protection normally collects information from a range of sources.

Before your cargo is shipped, your airline, forwarder and the shipping lines will all make a submission on the details about your shipment.

This is done through the Automated Manifest System (AMS).

In case of an ocean shipment, your broker will transmit the compulsory Importer Security Filing (ISF) 24 hours before departure.

Days before the arrival of your cargo, your broker will transmit the data to the customs.

What is Customs Examination Procedure?

Once your cargo is flagged by the algorithm of the CBP for inspection, your cargo will be subjected to one of the following custom exams:

• The X-Ray
• Tail Gate
• The intensive

The manner in which the customs examination is performed depends on the type of exam that the cargo is subjected to.

If the cargo is chosen for an intensive customs exam, several things happen.

First, the shipper and the broker are notified of the status of the shipment.

The cargo is held at the port awaiting transportation to the Centralized Examination Station (CES).

At the Centralized Examination Station (CES), it will be queued waiting for other shipments to be examined.

This can take several days before the customs officers are done.

During the examination, the customs officers might be forced to break the container seal to completely offload it.

This may take time but it might be the only way of performing a thorough inspection on the shipment.

If the shipment has passed the customs exam, the contents will be loaded back to the container.

The shipment is then cleared to get into the U.S. without any more demands.

However, if your shipment does not pass the customs exam, several things may fall into place.

The customs may request the shipment be taken back to the country of origin.

This is done at the expense of the shipper.

If the shipment is considered illegal or harmful, it can either be incinerated or crushed at the CES location.

The shipper can never be compensated in any case for the loss arising from the decision to crush the shipment.

How will I Know if my Shipment is Undergoing a Customs Exam?

If your shipment has been selected for customs exam, the importer and the broker are notified by the customs.

After reviewing, the CBP decides on whether to go on and inspect the cargo using the different types of customs exams.

If further inspection is not necessary, they request for the submission of backup documentation, additional information and other relevant certificates.

The shipment is then released or taken for more examination using one or different types of customs exams.

Where do Customs perform Exams on shipments?

Customs Exams are conducted at the Centralized Examination Centre (CES). This is a privately owned facility that is operated with the authorization of the CBP.

This is where the cargo is taken to be examined by the CBP.

The CES can offer the transportation of cargo from the port to their facility as requested by the importer, steamship line or importer’s agent.

The CES helps in facilitating the examination process by offering the CBP transportation means and a facility to conduct their business.

CES providers are existing trucking and warehouse companies that choose to offer this as an additional service since they have required resources.

Can I prevent my Shipment from undergoing a Customs Exam?

Not getting selected for a customs exam is simply a bit of sheer luck.

You cannot prevent your shipment from going through a customs exam.

You can however undertake several measures to reduce the chances of being chosen for the customs exam.

Following the tips below can help you reduce the frustrations that come with customs exam.

Put your Paperwork Clear and in Order

If you are new in the importing business, you need an experienced freight forwarder to help you with the process.

They understand everything necessary and what kind of behavior may alarm the customs officials.

Choose a freight forwarder who can link you up with a customs broker that is experienced.

A good customs broker is going to help you clear your shipment promptly without delays.

Give Accurate Valuations for your Cargo

The custom officials do check the values of your goods and compare them with similar goods.

If the valuation of your cargo is way off, it is going to trigger the interest of the customs officials.

Your freight forwarder is going to give you a piece of good advice on this part.

Works Together with Partners who are Established

Always maintain an importing record.

Work with freight forwarders that are established and have a secured supply chain.

This will minimize the possibilities of ever being selected for a customs exam.

 

Avoid Consolidating Shipments from Strangers

LCL shipments can greatly save you money, they have high chances of being flagged for customs exam.

It is worth sending your cargo using a dedicated container.

This helps you avoid the chances of being subjected to a customs exam.

Familiarize yourself with the CBP by Applying for Continuous Customs Bond-

Building a good relationship with the CBP can help them see you as a reliable shipper.

They are able to expedite your cargo and reduce the possibilities of being selected for customs exams.

If you are shipping large volumes of goods, you can consider getting the CTPAT membership with CBP.

If you are able to adhere to all the requirements, you will be subjected to very few customs exams.

And in case you are selected, you can get a fast inspection.

How do you prepare for Customs Examination?

There is nothing much you can do once your shipment has been selected for Customs Exams.

Once your cargo gets to the port, you will have no time to prepare.

However, you can do a few things to get ready in case your shipment has been flagged for Customs Examination.

You can be able to prepare for the customs Exam even before the shipment is dispatched from the country of origin.

The custom examination is not a must but you must prepare in advance just in case your cargo is selected.

There are two ways that you can protect yourself from the customs examination. These are:

• Insurance
• Customs broker

To start with, an intensive customs exam can damage your freight.

It is a good idea that you invest in cargo insurance that is going to cover transit and damages relating to the inspection.

This way, in case your cargo gets damaged after undergoing intensive customs exams, it does not become devastating.

Secondly, having a customs broker can greatly help you in many ways.

Customs broker can help you reduce the chances of your shipment being selected for customs exams.

They will also help you in communicating with the customs as well as updating you on every process of examination.

Customs brokers are also going to help you correct the errors occurring on the documentation on your behalf.

This helps in moving the entire process smoothly.

What is Customs Exam Fee?

A customs exam fee is the charges incurred by an importer in case a shipment is selected for customs exams.

The Custom exam fee is dependent on the kind of inspection that is being performed.

The custom exam fee can range from $80 to $1000 and beyond.

Who pays for Customs Exam Fee?

It’s the importer’s responsibility to cater for the customs fees that are incurred on the shipments entering the United States.

These costs may include exam fees, service fees, transportation costs, and storage costs.

How are different Shipments charged for Customs Exams?

For Every type of customs exams that your shipment gets subjected to, it will attract a different fee.

The fees charged for the intensive exam for example will range from $1,000 to over $2,500.

The charges will depend on the amount of labour involved, the container size as well as the port from where the container is held.

If the fees are charged per shipment, the charges will range from a minimum of $250 going up.

For the case of an LCL shipment, the cost of every container is divided proportionally among the importers involved in the shipment.

The fees are calculated and the freight forwarder facilitating the movement of the goods from the country of origin collects them.

For FCL, the fees will be a one-off and the importer will be required to pay the charges associated with the customs exams.

Who charges Customs Exam Fees?

Custom exam fees are not charged by Customs and Border Protection (CBP).

Whenever you are required to pay the fees, they will be collected by:

The Centralized Examination Station (CES)

This is a private facility that is used by the CBP when they need to conduct an inspection.

They will handle the logistics, inspection, unloading and loading of the cargo to the container.

All charges accruing from these services will be charged to you.

You may also pay for storage in their warehouses.

Transport Company

This is the Company handling the movement of your shipment to the CS and back.

The fees will reflect as drayage charges on your invoice.

The Shipping Company

The Company handling your shipping may charge you for demurrage and detention since you are exceeding the time agreed on the container usage.

Depending on how the situation is, they may also request you to pay for storage charges.

Must I pay the Customs Exam Fee before my shipment is released?

Once the shipment has been subjected to a customs exam, all fees must be paid before the shipment is released.

To avoid that these payments do not cause delays and extra fees, you should have arrangements for prompt payments in advance.

How long does a Customs Exam take?

Normally shipments are held for around 45 days when undergoing customs exam.

Unfortunately, there is never a legal limit on the time the customs can keep your shipment when undergoing a customs exam.

Although the shipment is helping indefinitely, you can have your cargo released between 30-45 days.

This can even be earlier depending on the list of shipments ahead of you waiting to be examined.

The more time your shipment spends with the customs, the more charges you are going to rake to take care of storage fees.

Whatever you can do to speed up the customs exam process, you should do it.

This may involve payment of duties, provision of additional information and correction of documents.

This will highly impact the number of fees you will pay.

What happens after Customs completes Examining my Shipment?

Once the customs complete the examination process, they will release your shipment. At this point, you will be invoiced on the total amount so that you can pay.

Once you pay you can take your shipment.

If the customs find that the shipment violates the regulations and standards set, the shipment is returned to the country of origin at your own cost.

In the worst-case scenario, the shipment can be destroyed if the goods are found to be illegal or contraband.

What is a Customs Exam Hold?

Customs exam hold is where the shipment is held because there is something wrong with it.

Some of the wrongs include incomplete paperwork, unpaid taxes and fees. In short, a shipment is going to be held if you have made some errors during the process.

It can also be held whenever there is a pending thorough examination.

If your shipment gets held at the customs, it will remain there until the issues leading to the holding are resolved in their entirety.

This could mean you pay all the related charges, giving additional information, changing incorrect dates or any other necessary actions required by the customs.

What are the Different Types of Customs Hold?

Even when the shipment is not subjected to inspection, sometimes the customs will need to hold your shipment at the port of entry.

There are several types of customs hold each depending on the problem and situation.

However, all of them will subject you to long waiting before getting your shipment released.

The common types of customs hold are:

Manifest Hold

Manifest holds are placed when your shipment has incorrect shipping information.

The carrier’s manifest or the ISF data are the reasons why the manifest hold can occur.

To prevent this, make sure you have verified that is correctly entered and completed before the shipment is released.

Take time and double-check the information entered to save your time later when the shipment is being cleared.

Commercial Enforcement Hold

This type of hold is placed when the shipment does not comply with the customs regulations that apply to your shipment.

This can also happen if your shipment fails to comply with the regulations set by the government agencies that regulate your commodities.

How do I know if my Shipment is on Hold?

Once the shipment gets held or is chosen for customs exams, the “notify party” will be contacted via mail.

The notify party can be yourself or your broker.

Once that is done, you should contact customs or have your broker contact them.

This is done to find out if there is something you can work on to speed up the process.

In some cases your shipment will be held as a result of the “notify party” section being blank.

In such a scenario, the customs will contact any other contact person appearing on the documentation.

This can be the manufacturer, the packager, the shipper or your broker.

If nobody else is indicated and nobody is available to claim the cargo, it will have to be destroyed.

After all, it is upon you to make sure that you are doing everything correctly.

Why is Customs still holding my Shipment even after Examining it?

The customs will still hold your shipment if there is insufficient information on documentation.

They are not going to release your shipment until the information required has been submitted.

The customs are always going to think that something is being hidden.

It is important that you provide all the information they ask for.

Do Customs Accept Liability for Shipments under their Hold?

The customs are never going to accept liability for the cargo they are holding.

All fees and charges that accrue will be invoiced to the importer and the shipment can never be released until they are all settled.

It is your responsibility to ensure that everything is done right.

If your mistakes lead to losses, it is not up to them.

Which Shipments do Customs flag for Examination?

The CBP uses an algorithm which rates incoming shipment based on the risk levels.

They then select the riskiest and suspicious cargo for examination.

The factors included in the algorithm are not known since even the least expected shipments still find themselves in the examination list.

There is factors that easily attracts the attention of the customs to act and consider holding the shipment for examination.

They include:

• When the shipment involves a new shipper, one who hasn’t imported into the U.S. before, the customs will high suspect the shipment.

• If you are known for shipment mislabeling, doing things the wrong way, your shipments will always be suspected and selected for custom examination.

• The CBP takes into account everyone involved in your shipment while determining your risk factor.

So it does not mean that you are the only one to capture the attention of the CBP.

Handlers or the manufacturers, any of them with a bad reputation will make your shipment selected for inspection.

• Some Shipments will have more suspicious goods than others or easily mislabeled.

If your goods fall in that category, it is highly likely that they will be held for examination more often.

• The country of origin will also play a very significant role in determining the shipments to be flagged.

Shipments from some countries are regarding highly suspicious than those from other countries.

• It is not a very good idea for you to consolidate your cargo with other products even if it means saving money.

Your shipment can be held because of other goods contained in the container hence, you will suffer for their mistakes or actions.

• If your paperwork is not properly done or done incorrectly, the CBP is going to hold the shipment.

They have to determine if there is anything you are trying to hide and as such, they must inspect the shipment.

How can I avoid Customs Exams and Fees?

Customs exams and the fees that come along with is something that cannot be avoided once it occurs. They can only be prevented.

You must do all you can to avoid any suspicions.

Make sure you understand the shipping process and the requirements.

Adhere to every requirement and provide the necessary data to avoid being flagged.

In case you get flagged for inspection, prepare all the requirements the fastest possible to get cleared.

This will prevent you from excess fees that may accrue as storage fees.

Can a Customs Broker help navigate Customs Exam and Hold?

It is the easiest way you would consider in handling your customs examination.

You must choose a licensed customs broker.

They will come in handy especially if you are importing for the first time.

They are going to make sure that you do everything smoothly since they are specialists allowing you to focus on other things.

A customs broker is also going to help you reduce the chances of your shipment being flagged by filling all the documents properly.

In case your shipment is selected for customs exam, a customs broker can make you get informed about your shipment.

They will work to have your shipment cleared in a much faster way than you possibly could on your own.

Still, if you have any questions about customs exam, contact Tj chinafreight now.

At Tj chinafreight, we will help you in all your freight forwarding from China.

This guide covers all the critical aspects you need to know about deconsolidation.

So, if you want to learn more about this freight term, read this guide.

What is Deconsolidation?

Deconsolidation is the breakdown of a big shipment into smaller shipments usually at the port of entry for the final destination delivery.

The final destinations for the smaller cargoes can be a warehouse, distribution centers, stores, or to the end user client.

Why is Deconsolidation important in shipping?

Deconsolidation helps in making freight manageable by dividing them into smaller pieces and processing for delivery.

This saves the cost of last mile shipping as well as boost delivery speed to shippers and customers respectively.

Despite deconsolidation being a cost saver in the shipping process, it may increase cost of shipping if mismanaged.

This is because there are many touch points that may pose a risk to both the carrier and shipper.

Having a proper and up-to-date inventory system is crucial for a successful deconsolidation process in shipping.

What is the difference between Consolidation and Deconsolidation?

Consolidation is the merging of several less than container load (LCL) into a big container or truck shipment before transporting.

Deconsolidation is the act of separating a big cargo into smaller shipments for inland delivery to either stores, distribution center, etc.

The mode of shipping of consolidation is sea freight while deconsolidation is mainly inland transportation by trucks or rail.

While consolidation happens at the port of origin while deconsolidation is done at the destination port.

Consolidation and deconsolidation are mutually exclusive. They are like two sides of the same coin, one cannot be without the other.

Both consolidation and deconsolidation is carried out at the container freight station (CFS).

What are the benefits of Deconsolidation to Shippers?

Deconsolidation of freight is an integral part of enterprises in this age of e-commerce.

Small and medium businesses (SMBs) are able to operate profitably by consolidating and deconsolidation the shipment.

Deconsolidation shares the same benefits as that of consolidation process. They include:

Reduced Freight Cost

Deconsolidated freight are processed before they can be loaded for their respective destination delivery.

In this case, various means of transportation is used depending on the size and weight of the packages.

Trucks, train, motorcycle are among the vessels of transports used to carry out last mile delivery of the deconsolidated shipments.

This reduces the cost of transportation of these goods as compared to using the alternative.

Proper processing and handling of the goods is crucial to ensure correct, timely and cheaper delivery costs.

Proper Inventory Management

Deconsolidation process is not a walk in the park as it involves several different goods from different shippers in different locations.

Any carrier or freight forwarding company offering deconsolidation services has to have an excellent inventory management system to attract clients.

Secondly, proper inventory management will ensure efficient, accurate and timely delivery of the various goods to their respective localities and destinations.

Destinations of deconsolidated shipment include, warehouses, end user client, distribution centers, fulfillment centers, online orders collection centers.

Increase Market Delivery

Shippers can consolidate their goods and ship into the country using the third party companies and store in their warehouses.

Freight is then separated and transported to their respective markets and avoid out of stock situations.

Discounted Shipping Rate

Using third party logistics companies to ship consolidated goods makes them stay afloat during low season and also reduces cost of shipping.

This makes such shippers their preferred clients hence they are offered better discounts during shipment.

What is Deconsolidation Point?

Once the consolidated container arrives at the destination port, the container is transferred to a separation station within the port facility.

It is at this point that the shipment is separated into smaller packages and prepared for inland delivery.

Hence the name, deconsolidation center.

Deconsolidation points have workers who help with the offloading and processing of the goods using an inventory management system.

The goods are then loaded to appropriate mode of transportation and shipped to their final delivery points.

Where are Deconsolidation Facilities located?

Deconsolidation facilities are conveniently located within the ports to enable easy and faster separation of consolidated goods.

The reason for having them at the port due to availability of warehousing services, advanced equipment, inventory systems, manual and skilled labor.

This location is ideal for unloading, separating, classifying, tracking and transporting unmerged goods to several locations.

What is the difference between Deconsolidation and ‘Merge in Transit’?

Deconsolidation is the separation of consolidated loose, bulk or containerized goods into smaller Shipments.

Merge in transit is bringing together different goods from different suppliers and combining for transportation to a single customer.

Deconsolidation happens at a deconsolidation center while merge in transit is done at a merge center.

Whereas deconsolidation requires warehouse facility for storage, merge in transit eliminates the need for warehousing as it delivers to the final client.

Deconsolidation happens at the final destination port, merge in transit is carried out in the country of origin before shipping.

Both deconsolidation and merge in transit aim to lower the cost of transportation.

How can Deconsolidation simultaneously Increase and Decrease Risk in International Shipping?

Deconsolidation as we know involves dividing a big consignment into smaller packages for the last leg of shipment delivery.

This involves offloading all the goods from the FCL or FTL, segregation, processing, inventory update and dispatch to various destinations.

This increase the goods’ touch points and thus exposing them to risk of damage, loss or quality degradation if mishandled.

Furthermore, goods may be delivered to the wrong destination if the address is unclear or misplaced.

Conversely, deconsolidation decreases the risk of international shipping because it has made the carriers develop and use better inventory systems.

Carriers that offer consolidation and deconsolidation have warehouses management systems (WMS) integrated to the cloud.

This technology only requires the shipper to login from wherever they are in the world and monitor their shipment.

It easily integrates with the monitoring technologies such as RFID and AIDC that are tagged on the goods.

In some instances, the WMS come with camera that enable visual monitoring of deconsolidation process.

This has greatly reduced the risk of international shipping.

What are the Common Problems Experienced by Shippers in Freight Deconsolidation?

While deconsolidation comes with some benefits, it also has some challenges that shipper may encounter. They include:

Increased Risks

Consolidation and deconsolidation of goods has several touch points which also increases the likelihood of loose or damage of goods.

It is therefore, critical to reduce the touch point as possible to mitigate the risks.

Delays in Offloading and Deconsolidation

Upon arrival at the port, the container is expected to be offloaded and unloaded and goods separated. However, lack of space, injuries, etc. may cause delays in deconsolidation process thus affecting timely delivery and increase other costs.

Finding the Appropriate Carrier

Getting the right carrier can be a challenge as consolidation and deconsolidation process is quite involving.

Using freight forwarders or third party logistics companies is ideal as they are knowledgeable and can execute seamless deconsolidation of freight.

Tracking Challenges

While it is easier to track consolidated cargo, challenge arises once the goods are separated at the deconsolidation center.

This can cause chaos when you cannot locate your small shipment real-time while on transit.

To negate the chances of losing visibility of your shipment it is imperative to have the goods tagged using automatable technologies.

Some of the methods you can apply include; radio frequency identification code (RFID), automatic identification data capture (AIDC).

These will enable you have real-time end-to-end visibility of your goods from point of origin to final destination point.

Intermodal Shipping Challenges

Disintegrated goods move from full truck load (FTL) to less truck load (LTL) or small shipment vessels for transportation to various destinations.

In some cases, they maybe need to reconsolidate and deconsolidate at various points thus presenting increase in touch point risk.

Having a real-time tracking method in place may come in handy in monitoring goods movement.

Routing Issue

During the major shipping leg, situation may arise that require goods to be deconsolidated and reconsolidated during shipment.

This situations may be out of natural causes hence causing delays.

Carriers should plan ahead and make sure they stick to shippers’ route despite arising situations.

Who does Freight Deconsolidating?

Freight deconsolidation is carried out by third party logistics carriers or freight forwarders for shippers who do not have such shipping capacity.

Such shippers include small and medium businesses or e-commerce enterprises that struggle with their freight shipping.

Large shipping companies have the muscles to move freight without consolidation or deconsolidating hence seldom offer deconsolidation services.

How much does Deconsolidation cost?

The cost of disassembling freight at their destination port is averagely USD 25 depending on the dimension on the goods.

What are the key considerations for reducing the costs of Freight Deconsolidation?

The aim of freight deconsolidation is reducing their overall shipping costs, fasten delivery process among others.

In order to reach this goal, the following key aspects must be looked into.

Better Process knowledge

This help the carrier company to plan well for the cargo movement as well as deconsolidation and final deliver transportation.

Proper Shipping Documentation

Carriers and freight forwarders understand the importance of timely delivery of goods to their clients. To ensure they make timely delivery, carrier’s present proper documentations for the goods in transit across the borders for inspections.

This avoid hold up of goods by customs that may lead to unnecessary delays and extra shipping expenses to the shippers.

Freight forwarders may use pre-approvals lines where applicable to avoid delays.

Accurate Package Dimensions Entry

Lately, there has been an increase in the use of dimensions-price models by freight forwarders.

It is therefore important to correctly capture the weight, size and volume of each shipment to be shipped.

This assist freight forwarders to give accurate quotations and also to plan for consolidation and deconsolidation appropriately.

Experienced Freight Forwarder

Experience in working with different and warehouse and yard management systems makes the process seamless for the carrier company.

Real Time Traceability

End-to-end visibility of goods during transportation is important for tracking purposes and avoid lose.

Goods Prioritization

During consolidation, goods should be loaded in various categories which will subsequently make deconsolidation process easier and faster.

It makes entry of inventory process easier and further fasten the last-mile distribution process.

Does Freight Deconsolidation work for everyone?

While deconsolidation may work well for some business, it may lead to terrible losses and higher costs for some.

It is therefore important for business owners to analyze their market before venturing into deconsolidation services.

For instant, clothing business might do well with deconsolidation services. First, the clothes will reach the market faster by bypassing distribution centers.

Secondly, the business owner might decide to hold stock and study trend before dispatching thus gaining more profits.

Finally, if the business has several retail centers across the country, deconsolidation allows them to redistribute the clothes faster and cheaply.

While this might lead to higher sales, reduced costs to the clothing business it might lead to overstocking for furniture business.

Higher inventory capacity may be costly and lead to bigger financial burden.

How can you Ensure Safety of Goods during Freight Deconsolidation?

Safety of goods that are to be deconsolidated is paramount to avoid product loss due to theft or misplacement.

Shippers can ensure their product safety by using modern technologies such as RFID and AIDC to trace their goods end-to-end.

Having real time visibility of the product will enable the shipper to know every location of the freight during transit.

Such technologies also enable inventory monitoring from the cloud for shippers who use carrier’s warehouses for storage.

Additionally, carriers provide a round the clock security to the goods once they take over from the supplier.

They oversee deconsolidation process at the deconsolidation station and countercheck goods as they are loaded for dispatch.

Does Cargo Insurance Cover loss and Damage of Goods During Freight Deconsolidation?

Cargo insurance is the protection of goods provided by the carrier vessels corporation.

This covers loss of goods in case of any incident while on board.

To protect freight during deconsolidation, the terms need to be added to the policy for it to apply.

It is important for shippers to ensure the insurance cover taken is comprehensive to cover deconsolidation process.

This comes at an extra fee since the risk involved in freight deconsolidation is high.

How do you Make a Deconsolidation strategy Successful?

Like any other strategies, deconsolidation planning should factor in all the pros and cons towards a specific items.

While the aim is to reduce shipping cost and fasten goods availability in the market, risks must be mitigated.

Carriers have to ensure that the multiple touch points get extra attention and if possible reduced.

This can be achieved by putting in place a working measures during offloading and sorting.

Equipment such as conveyor belts to be used for loading onto waiting truck, and fragile items separated and handled carefully.

With this and good inventory system in place, deconsolidation strategy will be successful.

Is Deconsolidation viable for all kinds of Shipments?

Deconsolidation services cannot be offered to any type of goods.

There is a limit for goods that can be disintegrated from the original consolidated freight for final destination shipment.

Such items include; fragile goods like carvings, food items that are perishable, drugs, minerals etc. Hazardous materials (HAZMAT) cannot be deconsolidated, they include; toxic chemicals, biological and radioactive agents, nuclear waste products, fuels, etc.

 

How can Tj chinafreight help Shippers boost Proficiency and Efficiency in Freight Deconsolidation?

Shippers use deconsolidation services in order to reduce cost and ensure goods availability on time.

Tj chinafreight shipping can help shippers to realize efficiency and proficiency of freight deconsolidation by the following:

• They can also offer discounted rates to their frequent shippers to help them reduce their shipping costs.
• Timely arrival and deconsolidation at the entry port ensure the goods reach the market on time avoiding out of stock situations.
• Keeping clean inventory records for shippers to monitor their items throughout the process.
• Assist with end client delivery of items.

Do you Recommend Consolidation and Deconsolidation of Amazon FBA Shipments?

Yes.

Amazon FBA serves global customers therefore, in order to deliver to the on time, they can use consolidation and deconsolidation services.

This online store serves customers in different geographical regions.

It operates by customers ordering through their Amazon account and the goods are delivered to their fulfilment center buy manufacturer.

Once they receive the goods, they sort and consolidate all freight going to similar region and dispatch them.

Upon arrival to their respective country ports, the freight is deconsolidated and good distributed to all their customers respectively.

What Does a Deconsolidation Service Entail?

Deconsolidation services include:

• Receipt of cargo at the deconsolidation center
• Storage
• Clearance with customs
• Offloading, sorting and inventory management
• Documentation
• Packing and truck loading
• Cross docking
• Inland Shipping

What is Deconsolidation Notice and why is Important?

A deconsolidation an electronic notice issued by border authority allowing the client (carrier or freight forwarder) to take over consolidated shipment.

This electronic authorization is presented to the warehouse manager to authorize the freight forwarder to take charge of consolidated cargo upon arrival.

Besides, it acts as an electronic notice to customs official that taxes and duties of that particular consolidate freight have been acquitted.

If the warehouse operator does not get the electronic notification the client can present them with printed copy of the same.

A verified and stamped copy of the consolidated cargo control document by CBSA may also be presented to the warehouse operator.

At Tj chinafreight, we will help you in all freight forwarding services from China – contact us now.

This guide covers everything you need to know about delivery labor fee.

So, if you want to learn more about delivery labor fee, read this guide.

What is Delivery Labor Fee in Logistics?

A delivery labor fee is a destination charge. It appears when the trucker helps to unload cargo at your warehouse or distribution center.

Note that this charge is applicable when the trucker spends 20 minutes or more unloading your goods from the truck.

How is Delivery Labor beneficial during shipping?

Delivery labor, while not so popular, provides several benefits:

• You save a lot on labor when you use truckers to help unload cargo at destination
• Accurate and faster unloading because of the additional help
• You avoid detention, trucking wait fees, and other surcharges that may accrue because of delayed unloading
• It helps you distribute products faster thanks to on-time delivery, unloading, and packing
• Delivery labor allows you to return the empty shipping container to the port on time, avoiding the extra drop fees. This also reduces the chassis use days that may cause more charges on your invoice.
• Most truckers have experience in cargo unloading. Hence, they will ensure the safety of goods while moving them from the truck to the warehouse or distribution facility.
• It minimizes theft and loss of cargo. The chances of the truck driver stealing your goods are minimal than when you hire third-party laborers for the live unload.

Is Delivery Labor the same as Unloading?

In a way, yes!

Delivery labor is the help provided by trucking drivers in moving cargo from the truck to your facility at your destination.

Unloading is the same thing only that with this, it can happen anywhere. Unloading can occur at the port, at the customer’s premise, or the freight forwarder’s warehousing facility. Unloading is a generic term that describes the action of removing cargo from a ship, a truck, or a container.

Why do Trucking Companies charge Delivery Labor Fee?

In logistics, any cost that isn’t a simple per-mile transportation charge is quoted as an accessorial charge.

Truckers are often called upon to perform services other than just transporting cargo. Truckers may have to unload the cargo. This service, note, isn’t included in the per-mile shipping rate charge.

It would be unfair for a trucking company to charge the fees for unloading as part of the per-mile rate. This is because not all customers may need this additional service.

Cargo unloading and other extra services come at unique costs. Hence, it would be quite difficult to average out the cost without overcharging customers who only need simple shipment services.

To put it simply, logistics companies charge delivery labor fees because it is the only fair way to charge a customer for the unloading services. The same applies to other accessorial charges in shipping.

Who pays the Delivery Labor Fee in Shipping?

The shipper pays the delivery labor fee in shipping.

Here, the shipper can be the buyer/importer, freight forwarder, or customs broker.

How much is the typical Delivery Labor Charge?

The standard delivery labor charges vary depending on the trucking company you’re using as well as the type and volume of goods you’re transporting.

Note however that truckers charge a standard fee for the first few minutes. Extra hours are charged on a per hour basis.

Is Delivery Labor Fees applicable to all shipments?

Yes, delivery labor fees apply to all shipments as long as one trucker can handle them. It applies to freight that requires a lift gate, or for any freight that is palletized, skidded, or unitized.

A shipper may hire third-party off-loaders to offload the truck.

In this case, you won’t require the help of the trucker/driver to offload, and then delivery labor fees are not applicable.

What is the difference between Delivery Labor Fees and Demurrage Fees?

Delivery labor fees comprise payments to the driver for unloading cargo at delivery location. Demurrage fees are charges assessed by the carrier to recoup its costs for holding goods at the terminal beyond the agreed free hours.

Demurrage fees will continue to add up even if the delay to pick up your cargo is because of congestion at the terminal. It is charged daily so collect your cargo as soon as possible to avoid hefty demurrage fees.

How do you cut Delivery Labor Fees in logistics?

The shipper may reduce their delivery labor fees by utilizing the maximum allowed weight of the shipment and having a flat rate labor fee charged at delivery.

Do not, however, exceed the weight limit.

When you take the services of a reputable company, you may get discounts which result in reduced shipping trickling down to the overall cost of goods.

You may pass on the savings realized from such discounts to your customers or use it to increase your profits.

Get quotations from several sources (companies) and choose the best in terms of efficiency and best rates.

Use packaging boxes of correct size and dimensions to avoid extra charges associated with extra-large boxes.

Does Delivery Labor Fees factor into the Final Cost of shipping?

Yes.

Cost of shipping is the total expense incurred in moving goods from origin to final destination.

Delivery labor fee in this is an expense that you incur to ensure goods are safely unloaded and delivered to your destination location.

So yes, delivery labor fees factor into the final cost of shipping.

How is Delivery Labor Fee calculated?

When the tracker takes at least 20 minutes to unload the truck, they are entitled to a fixed amount as a delivery labor fee. Any extra time that the trucker takes during offloading is charged per hour.

If the tracker helps the buyer with lift gate services, a standard fee is charged which is usually higher.

The truck will have electric or hydraulic equipment fixed at the back of the truck to help lift the weights of the cargo.

Not all trucks are fitted with hydraulic equipment, so you need to let the trucking company know you need the lift gate.

You may incur extra charges in case you need a lift gate to offload your cargo, and it is not available. That means that your cargo will be redelivered, which will cost you more.

Is Delivery Labor Fee Negotiable?

Yes, delivery labor is negotiable under different circumstances.

As this is an accessorial charge, you can always ask for a discount especially if you’re a regular customer of the trucking company.

Does the Delivery Labor Fee cover risks in unloading?

No.

The delivery labor fee is the price of the unloading services paid to the driver/trucker. The labor fee does not cover any damages or loss that may occur during cargo unloading.

Who takes Liability in case of Damage or theft during Cargo Unloading?

It is pretty common for cargo to get lost or damaged during unloading.

Unfortunately, most trucking companies don’t take responsibility for this. Remember, delivery labor is an outside arrangement.

It is not part of the last mile delivery contract. As such, any liabilities are only borne by you (buyer/importer).

It’s worth noting though that most truck drivers are disciplined and won’t steal goods when offering delivery labor services.

They have employment contracts that bind them to ensure professional and reliable service delivery.

However, if you suspect misconduct in terms of cargo theft during delivery labor, you may launch a complaint with the trucking company.

They should be able to give you the right way forward.

Regarding cargo damage, this liability is also not borne by the trucking company.

You, the buyer, will solely bear this loss.

That is why it is important to consider your options when requesting for delivery labor.

If shipping goods that require special handling, it is better to hire skilled lumpers to do the task.

Moreover, it is important to get last-mile cargo insurance to give you additional protection against the risk of damage, theft, or loss.

Choose one that covers your liability in case of damage or theft during cargo unloading.

How do you Ensure Safe Unloading during Shipment Delivery?

If you are in the business of importation, it is important to know how to pack and secure your cargo during shipping.

The unloading process can be considered as one of the most vulnerable phases of shipping. It is the time when your cargo can easily be damaged or lost.

Proper packaging using the right materials is essential in ensuring your cargo reaches its destination in good condition.

It may also prevent damage during unloading. Securing the cargo well during loading is also vital. It will keep goods from toppling and falling over during unpacking.

The quality of unloading also affects the safety of goods in the delivery process. Off-loaders should be trained and skilled in handling many loads for unloading products safely.

If not, find skilled labor to do the unloading. This will help avoid losses due to poor handling during the unloading process.

If you’re transporting large volumes or special goods, make sure that you use the right personnel and equipment for the unloading.

How do you pay Delivery Labor Fee when shipping?

Usually, you will pay the delivery to the cargo transportation company after the trucker has helped in offloading the cargo.

The company sends you an invoice and you my then do a bank transfer from your account to the company’s bank account.

You may also consider other payment options acceptable by the trucking company such as credit card payment, or PayPal.

How does increased Delivery Labor Fees affect your Import Business?

Increase delivery labor fees delivery increases the cost of shipping.

Ultimately, you will have to factor in this increase into the final cost of your product setting prices a little higher.

Note that a high cost of goods tends to driver away customers, especially if your goods are higher priced that the competitors.

You may choose to pass on this extra charge to customers or not. The latter, beware, will eat into your profits.

Are Delivery Labor Services applicable to Goods that require special handling?

No.

Delivery labor service does not apply to goods that require special handling, as these special skills and equipment to unload.

Goods that require special handling may be dangerous goods i.e. HAZMAT, fragile items like glass, or OOG which require the use of special equipment.

Special handling involves additional time, costs, and procedures that a truck driver may not be able to offer.

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How does Delivery Labor Fees Factor into your product landed costs?

Charge of delivery labor fees is a value that will eventually land in your product landed cost.

Note that landed cost is the sum of all expenses required to bring a product from its origin or manufacturer to its final destination.

These expenses typically include costs for purchasing goods, packaging materials, shipping or freight charges, insurance, and taxes as well as accessorial fees.

The delivery labor fee is an accessorial charge.

It occurs during last mile delivery and yes, it factors into the final landed cost of the product.

You have to consider all costs and fees, including delivery labor, when calculated the final cost of shipping the product and setting its market price (if importing for resell purposes)

Product landed cost is a key element in determining the profitability of any business.

Therefore, it is important to make sure that you have accurate landed costs for your deliveries.

Can seeking a Freight Forwarding Partner help you avoid or Lower Delivery Labor Costs?

Yes.

A freight forwarding company is not only a forwarding agent but also offers other services like consolidation and inventory management.

They also offer planning and documentation help, arranging pickup and delivery as well. This makes them an essential partner in your supply chain.

Freight forwarding companies provide this service for a fee besides the shipping costs.

If you use them as ‘your one-stop shop’, a freight forwarder will help you get your products shipped with minimal or even no delivery labor costs.

It is important to find freight forwarder who can save you money in shipping.

The best freight forwarder is the one who can provide shipping services across different modes of transportation.

They should have the capability to all kind of shipments including full container loads and partial loads, line-haul loads, or full truckload shipments.

Are there exceptions to the Delivery Labor Fee?

Yes.

If you are a regular client to the logistic company, they may discount you on the delivery labor fees.

A freight forwarder offering you import haulage may also give you a delivery labor discount. This is only if their service package includes last mile delivery. Most forwarders also offer this service for free to repeat customers. So you may want to establish some loyalty with your import/shipping partners.

Who pays for Delivery Labor when shipping under DDU or DDP terms?

The buyer/importer pays for delivery labor both under DDU and DDP terms.

On the DDP incoterm, the seller delivers goods to the buyer’s premises. He pays for all costs including clearance fees at the customs, VAT, all taxes, and import duties.

The seller takes care of the entire risk of loss until the cargo gets to the buyer’s door. He does not, however, pay for the unloading of cargo.

With DDU shipping, the seller takes care of all costs until the cargo gets into the buyer’s country.

The buyer then takes over the shipment and pays for VAT and/ or customs charges as applied in their (buyer’s/importer) country.

In both terms, the buyer/importer is responsible for all shipping costs including last mile delivery of cargo.

So in both terms, unless otherwise agreed upon by the buyer and seller, the buyer pays for delivery labor whenever necessary,

Is Delivery Labor Fee legal?

The primary job of the truck driver is to safely deliver the cargo to the buyer’s premises.

If the driver helps to unload the cargo at your premises then it is reasonable that you pay for the offloading labor.

This is keeping in mind that cargo loading and unloading is outside their service jurisdiction and the trucking company’s per mile rate.

So yes, delivery labor fee is legal as it is payment for a service rendered.

What is the difference between Delivery Labor Fee and Lumper Fee in Logistics?

As stated severally, a delivery labor fee is the amount paid to the truck driver for physically unloading your cargo at destination.

The fee applies when the trucker spends over twenty minutes offloading.

Lumper fees are the amount paid to third-party workers (lumpers) hired to help with the loading or unloading of cargo at a destination.

The truck driver either pays the lumper fee in cash or issues them with a cheque.

The amount the trucker pays to the lumpers (lumper fees) is then reimbursed to him by the buyer/shipper or the carrier.

At Tj chinafreight, we will help you in all freight forwarding services to any global destination – talk to us now.

This guide covers all information you need to know about demurrage.

So, if you want to learn more about this freight term, read this guide.

What is Demurrage?

Demurrage is the penalty charged on the shipping container for staying at the port terminal beyond the last free days.

Carriers or shipping lines grant between 3 to 7 free days to the buyers to collect, load or discharge their cargo.

Failure to collect the container within the free days attract charges per day per container till the day of pick up.

What are the causes of Demurrage?

Demurrages can arise due to causes within shipper’s control or from unforeseen circumstances. Some of the causes are:

• Lack of proper shipping time and date communication between the cargo recipient (consignee) and the shipping company. Thereby leading to consignee delaying to pick up the cargo.
• Consignee receiving incorrect customs clearance papers thus leading to clearance delays by customs authority.
• Cargo and sales order mismatch after arrival at the port hence the consignee cannot accept them.
• Failure on the shipping company to send the consignee customs clearance documents on time for cargo clearance and pick up.
• Disagreement between the consignee and the shipper.
• Container held for customs exams by customs officials.

When does Import Demurrage finish?

Import demurrage ends when the container has been removed from the destination port terminal or delivered to the client.

Carrier haulage is under the control of shipper line or their contractor hence the demurrage ends with delivery.

Merchant haulage is the customer’s transport arrangement form the terminal therefore demurrage end when the container is removed from the terminal.

Demurrage must be paid before container can be released in both cases.

What is the difference between Laytime and Demurrage?

Laytime is the period of time allowed for loading and unloading of cargo under the voyage charter. Demurrage on the other hand is the penalty levied on containers once the free days run out.

Laytime ensures the voyagers adhere to the shipping times while demurrages ensure quick turn-around and efficient use of containers.

Both laytime and demurrages offer free time or days before charges apply.

Exceeding laytime attracts demurrages which is paid to the port official where the delay occurs.

How can Port Congestion affect your Supply Chain?

Port congestion is a situation whereby ships are unable to load and unload due to full capacity at the port.

With the high adaptation of globalization, there has been an increase in demand for supply and transportation of goods globally.

This in turn has led to port congestion since cargo fleets are doubling but port expansion is still slow.

Other causes of port congestion is unstable workforce brought about by poor remunerations as well as strict customs clearance processes.

This has led to increased operational cost to the shipping lines and cargo owners in terms of demurrage, storage and detention. It has made it difficult for carriers to deliver goods on time and cargos to miss their connection ships or trucks.

Shipping companies and governments are trying to reduce port congestion in order to improve marine logistics, reduce losses and port accidents. Some of the steps taken include:

• Adopting use of technology in port operations to make clearance processes faster and smooth.
• Introduction of night shift for workers to clear as much as possible cargo within 24 hours. Improve remunerations for workers to retain them.
• Using the ‘free flow’ container delivery system for readily available truck drivers. This reduces time spent in accessing the specific container.
• Improve port infrastructure and equipment for faster movement of cargo.
• Encourage importers to adopt Shipper-Owned Containers (SOC) as opposed to Carrier-Owned Containers (COC). This saves shippers from demurrage, storage and detention charges and also eliminates the need to return containers to the port.

What is the difference between Demurrage and Detention?

Demurrage is the fine on the buyers for failing to collect their containers from the port after the last free days.

Detention is the penalty for delaying to return empty or filled containers to the port after unloading and loading cargo respectively.

Demurrages applies when the container is still within the port whereas detention applies when the container is used outside the port.

Demurrage and detention offer buyers “free times” usually between 3 to 20 days to collect containers or return to the yard.

During imports, demurrage would apply for not picking up the container within the allowed free time.

Detention fee would be charged for failing to return the empty container after discharging your goods within the free time.

When exporting cargo, demurrage fee will be applicable when you deliver the loaded container prior to the agreed dispatch date.

Besides, when you do not present proper customs documentation for your shipment, it may delayed at the port, hence demurrage.

Detention fee would be applied if you delay to return the filled container to the port for dispatch as expected.

What is Combined Demurrage and Detention (Merged D&D)?

Combined demurrage and detention also known as merged D&D is when the individual charges are billed as one.

In such scenarios, clients are offered flat free days for collecting and returning containers when importing.

If the free days is 14 days, clients are expected to clear, collect and return the empty container within 14 days.

Beyond the 14 days, merged D & D is charged per day for the number of days exceeded by the client.

Who is responsible for Demurrage Charges?

Once the shipment arrives at the terminal, the vessel owner is absolved of any costs incurred from thereon.

Cargo owners take responsibilities of demurrages, storage, detention, and any other charges that are levied.

How much does Demurrage cost?

Demurrage fee differs from carrier, ports, and the contract agreement in place. The average cost is between USD 80-200 per container per day.

This rate can significantly change upwards after certain number of days depending on the port.

For example, port A charges USD 80 per container per day for demurrages. If you delay to pick up 7 containers by 6 days, you will incur USD 3,360 as demurrage.

Demurrage must be paid before the cargo is released from the terminal, this amount will impact negatively on your shipping cost.

How is Demurrage Calculation done?

As mentioned above, demurrage rates vary with ports, shipping lines or contract agreement between the consignee and carrier.

To calculate demurrage payable to ship owner, demurrage rate is multiplied by the number of days or hours exceeding the laytime.

An example of the calculation is as below:

• Demurrage rate per day pro rata (PDPR) USD 2,000
• Total number of laytime exceeded by ship is 5 days 6 hour and 45 minutes
• Total demurrage payable=USD 2,000 X 5d 6h 45mèUSD 2,000 X 5.2396 days=USD 10,479.12

It is necessary to understand the exact time a laytime expires in a charter and when the demurrage start to run. This will assist to arrive at the number of days and hours in excess of the allowed free time.

Demurrage, like stop watch will continue running until there’s an exception that necessitate its stoppage.

General exceptions is made when the ship moves from loading or unloading bay to berth and vice versa during free laytime.

In this scenario, the time consumed in moving is not factored in the laytime.

However, if the ship moves when laytime is expired, demurrage will continue running and the ship owner will be compensated.

When does time on Demurrage end?

Demurrage time ends the same time laytime would have ended as stated in the specific charter.

For dry bulk market, that would be completion of cargo operations and when cargo hoses are disconnected in tanker market.

What is Free Time Demurrage?

Free time refers to the period which the container can stay at the terminal port without incurring charges.

Free time is granted by ship owners to allow the cargo owners to collect and return containers. The number of days is usually between 7 to 14 days for shipping lines and can be extended upon request.

Which factors influence Demurrage Free Time you can enjoy?

Before demurrage clock start rolling, customers are allocated a number of free days within which they can clear and collect their containers.

The elapse of the free days mean costs start going up for the clients till they pick up their cargo.

Free days are allocated depending on port location, shipping line and the contract agreement, equipment and infrastructure.

Free time is not granted in some warehouses or yards.

As a result, they determine the number of free days customers will get and when the demurrage will start to apply.

Import demurrage may start when the ship docks at the terminal port, during vessel unloading or when cargo dispatch is completed.

Free days may run out due to unforeseen circumstances such as port congestion thus leading to demurrages.

Proper advanced planning is therefore encouraged to mitigate such scenarios.

How can you optimize your Free Time to manage Demurrage Costs?

Shipping lines grant certain number of days to cargo owners to enable them to clear and collect containers for free.

If the cargo owner fails to collect the cargo within those days they are then penalized each day.

This cost can eventually impact your business negatively, therefore, as an importer you need to plan in advance to avoid demurrage.

You can optimize on the free time by pre-clearing your goods and having the haulage schedule ready.

This will give you enough time to pick up your cargo before the free days end.

Is Demurrage the same as Storage?

No, it is not the same.

Demurrage is penalty for failing to collect container whereas storage is fee for the space occupied for days beyond free days.

While demurrage is to encourage efficient use and quick turn-around for containers, storage is to deter congestions at the port container yards.

Both demurrage and storage fee are calculated per day for each container.

Does Demurrage apply to Less than Container Load (LCL) Shipments?

No.

In LCL shipment, the shipping line is responsible for clearing the container on time and not the client. Therefore, demurrage do not apply to LCL clients.

However, they may be billed for storage space if they fail to collect their cargo within free days.

What is the difference between Demurrage and Wharfage?

Demurrage is the fee charged on containers that stay in the terminal port after the free days have run out.

Wharfage is the amount charged by port authority for using the wharf terminal.

This fee is normally included in the terminal handling fees quotation as part of port duty.

While demurrage allows for free days before it starts running, wharfage is standard charge for using the wharf which always applies.

What is ‘time study and turnaround time’ and how does it help to control Demurrage Charges?

Time study is close monitoring of different elements of a process, recording and analyzing each one of them.

Turnaround time is the amount of time taken to complete a task such as the length of time between arrival and departure.

Knowing the turnaround time is important in supply chain as it can predict the possibility of demurrage and detention.

Shorter the turnaround time are better for business while longer turnaround time increase chances of demurrage and other related costs.

Is Demurrage avoidable?

Demurrage are caused by both known and unforeseen circumstances which can be beyond human control.

Instances such as poor planning and communication and incorrect documentation can be mitigated to avoid demurrage.

Causes which are beyond the cargo owner such as bad weather, port congestion, are hard to avoid and lead to demurrage.

How can you reduce or avoid Demurrage Charges?

While it is difficult to avoid demurrage charges during shipment, it is possible to reduce or avoid them by:

1)     Clear and Effective Communication

Proactive communication between all parties involved is paramount when you are avoiding demurrages. The carrier, consignee, truckers, brokers and shippers should all be aware of where the shipment is at all times.

Communication starts the moment a shipping schedule is developed, this itinerary is shared across with everyone to plan accordingly.

Poor or lack of proper communication can lead to delay of container pick up which results into demurrages.

2)     Use the Services of Knowledgeable Carriers or Freight Forwarders

The process of shipping freight across borders is no mean fit and requires experts to handle it. This is because it is complex, time consuming and simple mistakes can lead to costs such as demurrage, detention charges, etc.

Working with a freight forwarding expert gives you a peace of mind as they will handle everything on your behalf.

Established freight forwarding companies have infrastructures such as storage facilities in different ports where they can store your goods for free.

Additionally, they are able to negotiate with ship owners for sufficient free days and favorable demurrage and detention fees.

3)     Understand Customs Clearance Processes for your Shipment

Having a clear understanding of customs processes for goods clearance will enable you to prepare the right documents on time.

You can also hire the services of a customs broker for a smooth process.

You can pre-clear your goods if the option is available, this will hasten the process of container discharge upon arrival.

Standard documentation required by the customs include:

• Bill of lading
• Commercial invoice
• Packing list
• Arrival schedule
• Others such as import license and dangerous goods certificate may be needed as and when required.

Ensure your supplier and carrier provide all the needed documentation on time to facilitate the process.

4)     Prepare for Cargo Pick up in Advance

Have a clear schedule for container clearance and pick up from the port even before the ship arrives.

If using merchant haulage, have the trucks arrive at the port early and collect container within the allocated free days.

For carrier haulage, ensure they share a clear schedule for container pick up that falls within the free time.

5)     Request for Quotation Breakdown for Demurrage Charges

Carriers should clearly indicate the demurrage rates per day, free days and the start and stop for demurrage and exceptions.

The transparency in quotation helps the buyers to plan well for the shipping costs.

Which Tools can be used to Monitor and Control Demurrage and other Accessorial Charges in Shipping?

Most organizations want to reduce shipping costs as much as possible, therefore tools for monitoring and controlling demurrage are welcome.

Key performance indicators  (KPI) and root cause analysis (RCA) are tools that organizations leverage for demurrage monitoring and control.

While KPIs measure organization’s deliverables both in the past and current, RCA, help reveal problem cause and how to avoid them.

KPI and RCA tools can be used to compare organization’s trends, problem causing activities and how to solve them respectively.

To avoid demurrage and other related costs, an organization or supply and logistics’ department can study the trends cause them. Therefater, they will be able to control the issue by analyzing the cause and have future preventive measures in place.

What is the difference between Demurrage and Per Diem?

Demurrage is the fee payable by the buyer for failing to collect the container from the port terminal past free days.

This fee is paid to the ship owners as a compensation for delaying their vessels at the port.

The charges are incurred per day per container and vary with port location and shipping line.

Per Diem is the fine billed to the buyer for using port equipment beyond the allocated free time.

The equipment include; containers, chassis or air unit load devices for airlines.

The per diem amount is fixed and is charged per equipment.

Is Demurrage the same as Despatch?

No, it is not the same. Despatch is complete opposite of demurrage.

Demurrage is the penalty fees paid to the ship owner by charterer for delaying beyond allowed free time.

Conversely, despatch is the fee paid to the charterer by ship owner for loading and unloading in less time than allowed.

Can you negotiate Demurrage?

Absolutely.

Demurrage varies depending on the carrier, port or contract agreement.

You can negotiate with the carrier for more free days for your cargo or longer laytime for the ship. This will buy you more time to clear and pick up your cargo or load and unload the ship.

Alternatively, once you get a quotation for demurrage at the port, you can request for a discount from the port official. Shipper with high volume goods are likely to get discount on the demurrages.

Since demurrage are unavoidable expenses for consignees, it is important to understand the local customs clearance process. This will help you prepare well in advance of your shipment arrival.

Additionally, you can ship ahead of time to buffer you from unpredictable situation such as bad weather, port backlog, etc.

Now, in case you have any other question about demurrage or any other freight term, feel free to contact us.

At Tj chinafreight, we offer perfect solution for all your freight forwarding services from China.

In this guide, you will find all information you are looking for about Chassis.

So, if you want to learn more about Chassis, read this guide.

What is Chassis in Shipping?

It refers to a structure conceived with wheels specifically for holding shipping containers.

Chassis facilitates the movement of shipping containers into and out of the shipping terminals or container freight stations.

Why do I want a Chassis?

There are a number of reasons why you need chassis.

Some of these include the following:

Facilitates smooth & secure shipping– secure attachment to the chassis-helps prevent unnecessary container movements, thus safer transportation.

Helps align with shipping requirements – With chassis, you can easily load or offload shipping containers. Besides, it helps in counting and storage of shipping containers, alongside other logistics operations.

Cost-effective and quick – Capable of loading several containers in one trip.

Which makes the process quick, so you can deliver goods on time.

As a result, this cuts down on extra costs making the entire process cost-effective.

Bugles on Customer Satisfaction– containers are shipped quickly and safely which improves reliability and scales up the general customer experience.

What is the use of Chassis in the Import and Export of Containerized Freight?

Ocean container chassis are known to poses a variety of functions.

You will use chassis to move shipping containers from one location to another.

Alternatively, you can also use chassis to store the shipping container. This will reduce the extra cost and time of loading or offloading the shipping container.

In addition to the chassis role in drayage options, it supports or bears a load on the body of a ship.

Chassis may as well be used in storage exclusively within any given supply chain. This is as follows;

At the terminal – you can conveniently store the shipping containers on your chassis. This normally happens when the chassis is awaiting collection.

On the other hand, at the facility of a shipper, you can also place shipping containers on the chassis.

Of course, this is after you detach the chassis alongside the container from the truck.

How do Chassis Work?

Over time, a chassis has been identified as the most integral component within any motorized automobile aside from the engine itself.

They are intended to securely attach to the containers.

The container fits firmly onto the Chassis, preventing excess movement.

Depending on the situation at hand you can:

1. Connect chassis to the truck then load a shipping container or,
2. Load shipping container to the chassis then attach it to a truck. Here you must esure the chassis has good support to withstand the load.

Once you have attached the chassis to a truck, you can move the container to any place.

How many types of Chassis are there?

There exist different types of Chassis, the 4 major types include;

Gooseneck Chassis – container trailers used in countries with the limit for the utmost height of containers especially for tall and heavy loads.

Marine Chassis – It is also known as domestic Chassis.

It refers to an ocean container chassis meant to hold containers in the marine.

This mainly to facilitate movement of trucks amidst shipping facilities and terminals.

Bomber Chassis – Bomb carts are employed to shuttle containers within a port.

They need side panels rather than twist locks which allows crane operators to quickly place containers on them to fasten the container ship unloading process.

Tank Chassis for Bulk Container- this refers to a characteristically longer type of Chassis with a third deck height.

It is used for portable bulk liquid containers or ISO tank containers.

What are the Basic Components of Container Chassis?

Coupling rod– Connects the stabilizer of a vehicle with the Chassis between axles thereby facilitating stability.

Hydraulic shock absorber– comprises of a cylinder crammed with hydraulic oil and a piston which helps it move with every vertical movement of the wheel.

Independent suspensions– they guarantee sure and safe driving characteristics.

As a result, achieving the highest possible comfort.

Rigid axle– mostly used in commercial vehicles and off-road vehicles since they are powerfully built.

Stabilizer– acts as a suspension component. This is to reduce chances of the vehicle rolling.

Suspension link– Absorbs the forces resulting from the driving dynamics.

Suspension spring– helps in compensation of uneven road surfaces and thus assures high comfort levels.

Torsion–beam rear axle– transfers all forces and torques between the wheels and vehicle bodywork.

Wheel bearings– They have many functions such as:

• Guides and supports shafts/axles
• Guide the wheels
• Absorb axial and radial forces

Wheel carrier– a part of the wheel suspension which supports the wheel bearing.

Wheel suspension– a part of the Chassis supporting the wheel system.

Spring strut support bearings– are a part of the spring damping system. They act as the interface between the spring strut and vehicle body.

What are the Notable differences between Ocean Container Chassis and 53′ Intermodal Container Chassis?

An ocean container chassis refers to a mechanical device with an easy design consisting of a frame made of steel, tires, a lighting system, and breaks.

It’s designed specifically for holding marine containers to aid movement between shipping facilities and terminals.

The domestic intermodal container is one that’s usually crammed with freight moving between North American terminals via railroads and doesn’t move by waterborne service.

Domestic intermodal Chassis are usually longer than ocean containers.

It is 53 feet and built to a lighter tare weight standard to accommodate more product.

Consequently, their mode of construction is equal except that there exist differences in terms of height and weight.

A domestic intermodal chassis is bigger in terms of height, a 53-foot weight can range from 500 to 700 lb.

On the other hand, an ocean container Chassis’ weight is approximately 6500 lb.

Most of the 53-feet domestic intermodal Chassis is designed with a certain mechanism.

This mechanism permits the axle of a chassis to be moved forth and back, change the distribution of loads and radius turning while traveling along locally made roads.

When it comes to the 40′ ocean container chassis, it is shorter to capacitate a 53′ domestic intermodal container.

The expected operating lifetime of the two types of Chassis also differs by great lengths.

An ocean container chassis features a lifespan of quite 20 years without being refurbished if properly maintained.

A 53′ intermodal container chassis anticipation is approximately 15 years as it is lightly built thus making it less durable.

How much does a Marine Chassis Cost?

According to equipment providers, there are a variety of international studies that have examined the value price relative to its features.

A chassis being replaced price range is approximately $10,000 to $20,000 depending on the specifications and features. A 53-foot container is about $10,000 to $15,000.

Do Chassis work with Custom-made Containers?

Previous studies indicate an opportunity for a chassis working hand in hand with custom-made containers.

Standard size straight frame chassis is essential for shipping containers without tunnels.

Some custom-built shipping containers are made with no tunnels.

This has made it difficult to fit containers in a gooseneck type of Chassis.

When carrying custom-made containers, one is expected to point out whether the container aligns with a tunnel or not.

The standard recommended size of straight frame chassis carries flat tunnel type of containers at specific dimension.

Are there specific Standards that Chassis must adhere to in Terms of Design and Built?

Basing on research over the past years, studies indicate that there’s an existing research gap on specific specifications that a chassis must adhere to.

We have various sorts of chassis containers, and that they differ greatly by region from one to another thereby bringing about distinctions.

What are the available Tire and Wheel options for Marine Chassis?

It’s recommended a marine chassis comes with 10 by 20 tires on 5 spoke wheels and spring suspension.

Options include air suspension and 11r22.5 tires on 10-hole disc wheels.

What are the 20ft and 40ft Straight Frame Chassis Specifications?

They both exhibit an equivalent specification except for the kingpin location and overall length where they differ greatly.

Overall Length varies for 40ft and 20ft respectively- 40ft- 40′-10″ and 20ft- 23′-6” Retracted; 27′-6” Extended

They both have an overall breadth of 96″.

King Pin Location varies – 40ft has 30″ from the rear face of the front bolster whereas a 20ft has 18” from the front of the Chassis

Joist Height is 48″.

Unladen weight is about 6,600 lb.

Main Rails should have two hot rolled steel, ASTM-A572 Grade 50 “I” beams. The wide flange of 12 inches through 19lb.

They should have a two-speed mechanism and square leg tubing landing gears with 10″ by 10″ low profile sandshoes

It entails a suspension hutch consisting of three leaf springs each 11,000 lb.

Also, they should have at least two axles of 5-inch round and 22,500 lb.

They beam specifications should have the following each; 16.5 by 7-inch Q brakes and slack adjusters preferably automated ones.

It should have anti-lock braking system; Meritor Wabco 2S/1M and a 30/30 Spring brake chambers

The recommended type of tires; 10 by 20 tires on 5 spoke wheels

It has a 12 volt electrical system with a 7-way plug type of connectors, lights, and sealed wire harnesses.

Twist Locks are mandatory for casting steel to interact with ISO corner castings

The preferred type of paint is commercial sandblast, primer, and a top-quality paint system

Others include; Bumper, Conspicuity Tape and 24 by 30 Mud Flaps

How has the Chassis Market evolved over the Last years?

The use of containers in Europe began as early as the 1960s.

The development of intermodal facilities at various locations succeeded in the establishment of the Chassis management model.

Similar developments are reported in Asia and other major global destinations.

The use of the Chassis model is postulated to experience a 7 seven-fold growth in CAGR.

The predicted growth is attributed to evolving adoption of manufacturing technologies and the underlying selection of material.

These developments have increased the competitiveness of automobile dealers and organizations.

Studies show Aluminum Chassis has the very best revenue generation.

In addition, fiber and resin-based material are predicted to grow over time in the market in the future.

Manufacturers are obliged to specialize in alternative materials to produce cost-efficient and high-strength Chassis.

What role do Shipping Lines Play within the Chassis Market?

A shipping line is a corporation that deals with vessel operation alongside ownership, liable for easy transportation of cargo aboard their ships.

They handle the cargo from where they originate to their terminals majorly from one port to another, transiting regular routes aboard their vessels on fixed schedules.

So they depend on the Chassis to receive containers.

What are the Road Weight Limitations and Chassis Specifications?

Keeping consistency in weight standards could also be challenging.

This is because countries have different weight standards on various cases.

Therefore it is difficult to develop the recommended standards for every specific case.

Recommended standard on the maximum gross weight of a rigid vehicle isn’t specified.

Most countries greatly vary in their maximum gross weight limits and therefore the mode values.

For instance, 32 tones are only utilized in 5 countries.

The six countries with the very best road freight volumes have either no adequate standards or unique limits.

Recent studies show 32 tones is suggested for the Recommended Standard by EU on the maximum gross weight of a rigid vehicle.

Who are the Operators of Chassis within the Shipping Industry?

Some of the main operators are:

• Truckers
• Railroads
• Ports
• Shippers
• Pool Managers

What are the Common causes of Chassis Shortages?

The Roadability Rule (Federal Motor Carrier Safety Administration (FMCSA)) – Enforcement of this rule became effective to date.

It has been of great impact on safety despite adding costs and delays all around.

Most of the Chassis is not serviced because of the low cost-benefit that they may lead to.

Exiting Ocean Carriers – For several years, steamship lines owned the container chassis.

The steamship lines were rented to logistic drivers at agreed-upon costs.

With the new Roadability rule in place and the extremely increasing costs related to pooling chassis, most of the ocean carriers are gradually running out of business.

Down Economy – After Roadability Rule enforcement was announced, it became critical for adoption.

This forced many companies to reconsider their approach towards Gizx and the long-term objectives of 8ZX.

What Effects does Inadequate Chassis Service Wear Shipping?

Cargo disruption – normal cargo flow is disrupted by a seismic and surprise external shock.

It may be a financial crisis, cyber-attack, trade war, or a worldwide pandemic causing a huge disruption within the system thereby exposing its underlying weaknesses.

Delays– thanks to the independence of equipment-leasing companies, very often there could also be a surplus of Chassis in one terminal and a desperate shortage at subsequent

How do Ports Ensure Sufficient Chassis availability?

Launching of grey pool arrangements referred to as a pool of pools.

With this, a chassis carrying a container for one shipping line at one location might be reused to hold a container belonging to a different location.

Shippers can expect fewer delays and greater efficiency, as they’re furnished with many Chassis at each ramp location.

Coming up with technology that tracks utilization, turn time, and site.

This ensures there’s the right number of Chassis at every ramp and may keep shippers’ freight moving.

What is Chassis Leasing?

This refers to an instance where a company leases a chassis to maneuver a shipping container to or from an ocean container port or a rail yard.

What are the Available Chassis Rental Models within the Shipping Industry?

There are 3 ways to lease Chassis; chassis pools, term leases, and daily rentals. The only existing difference is the length of time one is charged to use the Chassis.

Who Leases a Chassis?

The majority of the chassis usage remains to the account of the trucker who is contracted by the last word customer.

This suggests that the trucker is now passing along a chassis usage fee to the last word buyer of the transportation.

However, we’ve importers and exporters, also as Third-Party Logistics companies.

They take hold of this cost by procuring Chassis directly using one among the above options.

As a Shipper, What are the Benefits of Shopping for my Own Chassis?

Some of the benefits include:

• This leads to reduced maintenance charges
• Generally, the trucker can depreciate this capital expense
• Consistent and cost-efficient shipping
• Increased availability- easily accessible when needed
• Reduced downtime and improved reliability
• Improved service and cargo acceptance
• Improved safety

What is a ”Gray” Pool in Chassis Service?

The gray pool maybe a pool during which multiple IEPs contribute Chassis to one pool.

This allows truckers to use any of the contributed IEPs’ Chassis for any move.

Normally, this is despite the ocean carrier’s container being moved.

What does ”Open Choice” mean within the Chassis Market?

This is the capability of a shipper or trucker to make a decision that IEP is employed in merchant haulage contractual agreements.

That is, to supply a chassis for moving a container between terminals, instead of having the ocean carrier make that call.

What Challenges am I likely to Face with Chassis during International Shipping?

Cost– Profit margins have become a challenge as costs scale-up throughout the availability chain network.

The costs arise from many areas such hiring chassis, unforeseen delays, and accidents, alongside other factors.

Accessibility– time is taken to try chassis splits. Electronic logging devices adherently evaluate the 660 minutes daily for drivers who are often behind the wheel.

This implies that any time spent trying to find a chassis limits the time available to deliver cargo.

Quality of Chassis available– In many years, inclemency became a problem.

Resulting in some chassis being inoperable and resulting in aggressive reposition of chassis providers.

How am I able to Mitigate Chassis Challenges?

The most common challenges experienced by chassis users are shortages and other costs that come along.

To cub this, most truckers and even BCOs tend to shop for their Chassis with higher quality elements.

This ensures a frequent maintenance schedule and also helps them cut costs.

Data collection and predictive analytics which is caused by companies leasing Chassis, researchers, and developers of underlying technologies.

It’s also emerging as a key tool to enhance chassis accessibility and cargo velocity at marine terminals.

Forecasting comes as a challenge; including the need to predict the time of the return of Chassis to the terminals or when they are going to be available.

Equally, prediction is required beforehand to promote the ability of IEP to assemble the number of Chassis expected to be needed on a timely basis.

Take for example, company (American Intermodal Management) install in all its Chassis:

• GPS locator
• An accelerometer for communicating speed, direction, and distance
• Load sensor that notes and communicates when a container is mounted or dismounted permits shippers to trace cargo

They use data gained to improve performance in the operation of networks.

What are the Key Drivers of Chassis usage?

In most cases export and import volumes will determine the usage of chassis.

What are Container Chassis Regulations?

The United Nations and sponsored organizations have over the years voiced their concerns over international conventions.

Thereby developed laws for chassis regulations to meet the national requirements. They are listed below.

Customs Convention on containers– Effective since 1972. Plays a vital role in recognizing containers as Instruments of International Traffic (IIT).

Thereby coming up with a framework where containers can be used in international transportation.

TIR convention 1975- (UNECE) – Develops a framework for road transportation internationally.

ISO Standards– {the world organization for standardization’s (ISO) International Standards for freight containers and Chassis.

It gives room for the box to become the backbone of worldwide supply chains.

They also cover a good sort of aspects of various sorts of containers.

Roadability Regulations– Since 2009(US Federal of Motor Carrier Safety Administration) plays a role in establishing safety laws and regulations for inspection, repair, and maintenance of intermodal Chassis thus enhancing safe operation.

US safe port act of 2006¬- (US Department of Homeland Security) Comes up with security regulations for intermodal container operation within the US.

Is there a Difference Between US Chassis and those from other Parts of the World?

Ocean container chassis from the US differ slightly from those from other parts of the world.

In the US, they are built specifically to support specific container sizes and have fixed dimensions.

Usually, they are lighter than those from other countries.

This is because the US features a national gross vehicle weight standard of 80,000 lbs. on interstate highways which is less than most other nations.

An ideal ocean container chassis within the US is characterized by two axles.

Heavier container chassis that are tri-axle is usually less common within the US as compared to other parts of the planet.

They consists of about five percent of the US chassis fleet.

What is the Liability Regimen for Container Chassis?

Due to high truck road-related accidents within the recent past within the U.S, third-party liability coverage for Chassis has become significant to an equipment provider.

While there’s no particular third-party liability coverage of minimum requirement for ocean carriers, it’s customary to hold a minimum of 20 million dollars for insurance.

That is with even greater amounts being carried by chassis pools.

This also demands that repair and maintenance companies have optimal insurance coverage.

Also, the liability regime could also be an element to be considered by purchasers of intermodal transportation.

What is Wheeled vs. Grounded Operations in Chassis?

Grounded container operations are said to be the best quality type of model in the world.

In this kind of setting, containers are stacked on the terminal yard with the help of rubber-tired gantries (RTGs) or straddle carriers.

Grounded operations have an added advantage over wheeled operations since they have higher storage capacity.

Wheeled operations, usually transfer containers with one lift.

But require a significantly larger fleet of Chassis, more land for storage, and containers on Chassis.

What is Chassis Flip?

Chassis flip refers to an instance where there’s a need to move containers from one stalled Chassis to another resting chassis.

What are Some Common Reasons for Chassis Flips?

Some of the reason include the following:

• When there’s a nasty order chassis
• Due to mismatched container and Chassis
• When the driving force brings Chassis they own at terminals that are wheeled
• A point where the Chassis cannot go beyond the terminal
• When the container is stored on a chassis that cannot capacitate the weight of the container.

What is the difference between Rail and Terminal Operations with regards to Chassis?

There is a growing preference for wheeled operations at rail terminals as compared to marine terminals.

Rail terminal structures include the majority of wheeled operations while marine terminals are mostly grounded partially.

Thereby, rendering grounded the most commonly used model.

Research indicates opportunities have been opened by TOFC.

For rail terminals to limit the preference of wheeled operations to higher quality grounded operations.

This is important for Chassis specifically located at terminals that are wheeled where they serve as storage sites.

Conversion of wheeled operations for ground terminal operations is often challenging.

Since both rails terminal ought to handle both trailers and containers.

Unlike Marine terminals, rail chassis terminals have a higher tendency of Chassis and containers that are mismatched.

A reason as to why railroads can handle the equipment from different ocean carriers which are frequently owned by chassis pools that are different.

A railroad chassis, therefore, stores more different variants of Chassis.

This incorporates local Chassis, also as various sizes of marine Chassis.

When it comes to container pickups, the rail road’s terminals have generally had shorter free time allowances.

This ends up in shorter chassis dwell times as opposed to marine terminals.

At Tj chinafreight we help you in all freight forwarding from China to any global destination.

Contact us now for all your shipping needs from China.

If you have any questions about devanning, you will find the answer right here.

So, keep reading to learn more.

What does Devanning mean in Logistics?

Devanning otherwise referred to as stuffing is the process or act of taking out all the contents from a container. We can simply describe it as unloading a container.

More practically, Full container load (FCL) shipments are always devanned at the destination warehouse.

On the other hand, devanning of Less Than Container Load is carried out at the destination Container Freight station.

How are Shipping Containers Devanned?

Devanning is a process that requires maximum expertise owing to the risks and tasks involved to make the entire process a success. Normally, ships are packed to full capacity to ensure that there is maximum utilization of any available space.

Unpacking such containers not only poses a risk to the task force involved but also damage to the contents. This will however depend on the type of goods contained inside the container.

That said, seeking professional services from an experienced company is essential for an effective and efficient process.

Once the container arrives and is received, skilled and experienced container handlers carefully unload it using cranes, forklifts, or through manual handling.

Working with a professional will ensure that Health and safety precautions are upheld during the unloading process.

Different cargo will need different expertise when handling. You can as well choose the dock level unloading which involves unloading items using dock-level forklifts.

Depending on your preferences, your cargo can also be palletized as this will make it easier for you to store or ship later.

Who can Devann my Container?

Devanning a shipping container requires a skilled and qualified task force to execute every step with the care and expertise that it deserves. Not only are you looking forward to having your goods unloaded but also receiving them in good condition.

Technical skills combined with digital technology also play an important role in ensuring risks are minimized.

When choosing your logistics partner, be sure to check the following factors for better performance and results.

• Ability to palletize
• Ability to receive containers
• Ability to devann
• Storage and distribution ability from their site.

How can Devanning Services benefit my Business?

As a business person, business profits are your topmost priority and the driving factor to the growth of your business. Devanning services can greatly contribute to this in the following ways;

• Proper handling of goods by professionals prevents damages which might result in decreased profits.
• With the current technological trends such as WMS technology, you can easily keep track of your shipment. And that’s not enough, this will assist you to gain new insights and realize patterns in your business.

Not to mention that some systems go an extra mile into providing you with visual images of your products being received.

• Professional devanning services ensure a smooth, fluid, and reliable flow of the distribution and transportation processes.

Where does Devanning take place?

Devanning can either take place at the destination warehouse or the destination container freight station.

How do I load Containers to avoid damage during Devanning?

Container loading is one of the most important steps during shipping that should be carefully handled to protect your goods from damage.

During shipping, the vessel is bound to go through different waves of instability. Meaning the goods are prone to sliding off or banging against each other.

In most cases, your supplier should be held responsible for loading the container and ensuring that the cargo is well secured.

Here are some important tips to consider when loading a container;

• Secure the packages close together for better pressure distribution and preventing them from moving.
• Always put the light cargo at the top while the heavy ones settle beneath.
• Make use of dunnage to fill any empty spaces which allow for movement of the boxes.
• Find ideal securements for your cargo. This might range from; load bars, bracing plywood, and load straps. This will be determined by the type of goods you are shipping.

If you are unsure of which securement best suits your cargo, your supplier should be in a better position to advise you.

Is Container Devanning the same as Transloading?

Many might confuse these two terms owing to the close similarities that they depict. Nevertheless, you need to understand that devanning and transloading have two different meanings. Let’s find out below;

While devanning refers to unpacking goods from a container, transloading involves shifting cargo from one transport method to a different one.

Let’s take for instance you are shipping your goods from China. You might require to use at least two or three modes of transport for your goods to reach the final destination.

Shifting your goods from a truck to a ship or vice versa is what is referred to as transloading. And this not only applies to trucks and ships but any mode of transport.

Here are some of the circumstances that might require transloading of your cargo;

• When transporting your goods from the port to the desired final destination. This mostly involves unloading the cargo from the ship to the truck.

To avoid per diem charges, it’s essential to have all this organized before transporting your cargo.

• When delivering your cargo to different destinations. The transloading fee that you will be charged will cater for deconsolidation at the warehouse and palletizing it.

Afterward, your cargo will be loaded into the trucks ready to be transported to the final destination.

Amazon shipments are known to make use of transloading owing to the several Amazon FBA warehouse to which they are sent to.

How long does Devanning take?

The time taken for devanning will largely depend on the amount and type of cargo involved. Generally, this can take from as few as 1 day or less to as many as 3 days or more.

The more the cargo the more time it will consume to unload it and vice versa.

In addition to that, the listed factors affect the duration taken for devanning:

• Skills and expertise of the labor force.
• Limitation of equipment used.
• Performance of the equipment.

Do I need Special Equipment when Devanning a Container?

There is special equipment that you will need during the devanning process to make it efficient.

Essentially, here are some equipment that you will require when unloading cargo from the container;

• Ladder – A ladder is an essential tool when it comes to unloading as it helps the workforce to climb up the container.
• Liftgate – Liftgates are ideal when loading or unloading heavy cargo that can’t be lifted. It is an automated platform fixed at the back of a truck.

A liftgate operates by being lowered or raised from the container floor level when loading or unloading cargo. Keep in mind liftgates don’t come equipped in all trucks.

That said, it’s very important to request it if need be. It is also important to know that liftgates are not applicable when shipping FCL since they cannot be fixed onto shipping containers.

• Pallets – Pallets come in handy when sorting your cartons after the container arrives. For instance, if you have several SKUs in the shipping container, they assist in grouping different types of cartons to avoid double work.

This mean you won’t have to sort them again after unloading since you already did when unloading and thus it saves time.

• Forklift – Otherwise referred to as a lift truck, a forklift is a machine that loads and unloads cargo packed in pallets or slip sheets. It requires a skilled forklift operator to raise and lower two horizontal forks off the ground.

Aside from that, a forklift can transport the merchandise over short distances.

• Conveyor –Conveyors have the ability to loading several boxes at a go. Take into account that different types of cargo will require different types of conveyors.

Some conveyors are well suited for loose bulk cargo while others are ideal for large cargo.

• Bolt cutters – When the container is at the port of origin, it is sealed using heavy-duty bolts which enhance the locking system of the container. To unlock such, you need to have a strong pair of bolt cutters.
• Straps – Straps are used to keep your cargo in place while being shipped. They prevent movement of the cargo which might otherwise result in damages.

The straps are made from a soft and flexible material and this ensures that your merchandise is kept safe and secured. Straps are also used to secure the wheels of a car when loading it into a container.

• Slip Sheets – Slip sheets are thin plastic, corrugated sheets that are positioned between merchandise to facilitate lifting off the cargo by a facelift. Not only do they utilize space but also make it easier to remove pallets.

The best bit is that slip sheets are lighter and cheaper as compared to pallets. This makes them efficient for both transportation and storage.

That’s not enough, slip sheets also minimize the warehouse storage that would otherwise be occupied by pallets.

In addition to that, they can easily be recycled and they help in minimizing untidiness in the warehouse.

Pallets are a cause of rodent infestation in warehouses. The fact that slip sheets are thin, it’s hard for rodents to get stowed away.

• Dunnage – Dunnage is a general word used to describe any material placed between cargo to protect them during the shipping process. This can range from bubble wraps to industrial solid plastics.

Dunnage is not only meant to protect your goods from damages but also humidity and contamination. Below are some of the usages of dunnage;

1. Used between the goods and the container walls.
2. Dunnage can be placed on the floor to prevent moisture-sensitive goods from going bad as a result of absorbing moisture.

• You can as well position dunnage on any empty spaces to reduce movement and falling of goods while being shipped.

1. Dunnage can be placed on top of the goods as the condensation at the ceiling might damage the cargo.
2. You can use dunnage to separate individual batches while being shipped.

• Ramps – If you have no loading dock, a ramp comes through when unloading cargo. Some ramps are designed in such a way that they can withstand heavyweights including a forklift.

You need to position the ramp from the container space to the ground to facilitate easy movement of the forklift along the ramp.

How much are Container Devanning Charges?

Different companies charge different fees when it comes to container devanning. But the truth is that you should expect fee charges starting from $175 upwards if your container is 20ft with palletized goods.

On the other hand, a fee starting from $225 upwards will be applicable when shipping bulky or loose cargo. So be sure to contact your logistics company to get an accurate quote.

Keep in mind that you get what you pay for. That said, paying for quality service at an additional cost would rather be the best way to go.

Is Devanning applicable for Amazon FBA Shipments?

Yes, devanning is applicable for Amazon FBA shipments. You can request for your cargo to be devanned and packaged as per Amazon requirements.

A good logistics company should also be in a position to advise you on the packing requirements needed by Amazon.

How do I choose the right Devanning Service?

Devanning requires a skilled workforce and identifying such can be a hassle more so if you’re new to this. To make your work easier, below are some considerations to keep in mind;

• Conduct thorough research and identify a suitable and qualified devanning company.
• Seek to find out if you can be present when your cargo is being devanned. This allows you to account for the entire operation.
• Choose a service that conducts the entire operation at the same place and time. Preferably MAF and ATF customs bonded site.

In most cases, such sites are certified and meet the required standards.

• Work with a customs broker for an easy and efficient process.

 What are the Factors involved in Devanning Containers?

Some of the factors involved in devanning containers are not limited to;

• The type, weight, size, and quantity of the cargo.
• Budget and timeline
• Container throughput
• Condition of the site and constraints
• Availability of equipment
• Ownership and hire options

Does the Type of Transport Used determine how a Shipping Container is Devanned?

Yes. Different types of transport will require different techniques and equipment to unload.

For instance, since an aircraft cargo compartment door is located high above the ground, manual unloading is never a choice. A cargo loader is often used to do the job. This however cannot be applied when unloading a truck.

What are the Key Hazards associated with Devanning Containers?

Below are some of the major hazards associated with devanning containers;

• Falling of loose cargo from a height.
• Placing the container on a sloppy surface.
• Unskillful unpacking of the containers.
• Poor lighting to facilitate safe unloading.
• Dangerous chemicals.
• Loose items can fall on workers once the doors are opened.
• Loose items which move around during transportation.
• Environmental conditions such as heat or cold.

How do I manage Risks during Container Unpacking?

Below are some ways to manage risks during container unpacking;

• Ensure the floor is even.
• There should be no obstructions around containers and pallets.
• Avoid entering the container if the load appears to be positioned unsafely.
• Seek assistance if you don’t have adequate expertise in unpacking the container.
• Ensure that appropriate PPE’s are worn when unloading.

What is the Best Way to Ensure Safe Devanning?

The best way to ensure safe devanning is by working with a supplier. This way, you will make sure that;

• The cargo is well packaged in slip sheets or pallets to facilitate unloading by a forklift.
• The load is well packaged to avoid instability of the goods during transportation.
• Each cargo of sheet material is solely secured on an A-Frame.

What is the Benefit of Inspection during Container Devanning?

Inspection while unloading a container will not only ensure that cargo meets safety and quality requirements but also quantity and weight requirements.

Additionally, inspection allows you to notice any damages that have occurred during shipping. Inspection also ensures that your load is carefully handled and all the required documents are accurate.

Do I need to arrange the return of the Empty Shipping Container after Devanning?

Once you are done with the unloading process, the drive checks the container for any left-over debris. Afterward, the container is taken away.

It’s important to note that failure to clean your container will attract additional port charges to cater for the cleaning of the container. Therefore, you must sweep the container and leave it tidy after you are done with the unloading process.

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