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

Let’s look at another important term in freight industry – general rate increase.

So this guide will answer all questions you have been asking about general rate increase.

Let’s get started.

What Is A General Rate Increase?

General Rate Increase is an additional charge of the actual rates of the freights while shipping through certain trade routes.

The carriers in different companies establish this general rate increase to maintain a steady competition from rival freights.

General rate increase normally occurs during the peak season when carriers are shipping large freights, thus charging high costs.

Constant upgrading and maintenance are of great importance. This helps in keeping the business viable for competition and providing quality services during shipping.

Why Is GRI Applied?

The main concept while applying for a general rate increase is to determine the following;

• Supply and demand curve
• How viable the market is at that specific moment

With these factors, carriers can determine when to apply GRI and when not. In most cases, an increase in demand will always bring a peak season for carriers to increase the costs.

Due to the unsustainability of the GRI, when peak seasons occur, carriers should get the best out of them.

For this case, reporting 30 days before the relevant authorities recommend the application.

Maintainance, insurance, and compliance expenditures will also lead to carriers advocating for a general rate increase.

Inadequacy of nationwide drivers results in high costs for the few available drivers. This, as a result, leads to carriers applying for a general rate increase.

The constant fluctuation of fuel costs does not guarantee a decrease in GRI, but rather, these costs only affect the fuel surcharge. Therefore, the carrier will still apply the general rate increase.

When Does A GRI Apply?

We attribute GRI using the supply and demand drivers of the market at a specific time. This supply and demand will allow us to determine when to apply GRI by;

• Evaluating available building blocks of the market
• Global trade
• Market stability and the available trends

Over-supply of goods in an environment with low demand will always lead to slow movements of goods. Thus, carriers introduce the GRI to incur this cost of unmoving goods.

Peak seasons occur annually or semi-annually and sometimes do not occur at all. Therefore the carrier will choose when to apply the GRI depending on the demand.

Who Announces GRI, And When Do They Announce It?

Normally, the shipping line is responsible for making the GRI announcement. There has to be a submission request to the Federal Maritime Commission 30 days before making the announcement.

Depending on the market condition, carriers will decide whether to take the full increase cost set during the announcement. It means carriers can low the cost if the demand is low.

For instance,  increase up to $600 for a 20-feet shipping container with an effective date of 1 st December as per Maersk company.

Evaluation of the market condition will decrease this cost to $300.It prevents stalling of goods in the market due to low demand.

How Is The General Rate Increase Calculated?

General rate increase majorly involves analysis to allow you to determine when to impose these additional charges and when not to.

Calculating GRI involves:

An analysis of all changes in costs during the previous years.

The steamship line is aware of all the costs each tradeline is making, which are a determinate of GRI rates.

Evaluate carrier’s cost struct to review capital and expense projections to determine the current year or upcoming year. This calculation is a comparison of the GRI history with current or future history.

This prediction determine the number of unfolding activities such as;

• Future of labor
• Consumer behavior
• Government fees

What Items Are Not Included In The GRI?

In most cases, not all items are subject to a general rate increase. These items either cannot or are not included completely in the general rate increase. Some of the items include

Fuel costs: we associate fuel costs with ongoing surcharge/fluctuating costs where carriers can negotiate and find a possible solution.

Companies with large carriers /demand always set the price rate before other companies can do it. This aspect increases price competitiveness.

Small companies are not left out in this as they have similar set rates as large companies.But for this case, they will either experience high or costs GRI great affect these small companies.

To cab this impact GRI to small companies, they opt to work with third-party logistics to increase the chances with carriers.

What Is The Difference Between GRI(General Rate Increase) And PSS(Peak Season Surcharge)

The following are some of the major differences between the general rate increase and peak season surcharge. They include:

The general rate increase is an additional charge of the original base rates of freights been shipped through different trade lanes.

With a general rate increase, the charges tend to vary with months and also the carriers of the freights.

General rate increase can occur at any time of the year as long as a notification is made 30days prior.

On the other hand, Peak season applies when the demand for products is high hence the term peak season.

Market shifts affect the demand for goods, and therefore, the carrier can decide when to lower and when not to.

Charges on peak season surcharges are always above the base rate of the freight.

Peak season surcharge gives notification 30 days prior, but the best season is during fall/winter holidays and the Chinese new year.

Peak season surcharge can be sometimes chaotic. This results in goods lagging since you cannot move them throughout the year.

Below are some tips to cab the peak season surcharges

• Booking for the shipment before ar after a peak season
• You should consider carriers with lower PSS adjustments
• You should seek for leveraging relationships with carriers, freight forwarders, and NVOCCs
• Consider booking on slower routes to reduce the costs you will incur while the goods are still.
• You should negotiate for a fewer Peak season surcharge in your contract.

How Do GRI And PSS Factor Into My Freight Quote?

Generally, carriers can cancel, postpone, or implement PSS and  GRI at a lower cost than the announced one.

In some cases, the freight forwarder will charge you the total amount as per the original announcement and after implementing low rates.

We recommend all our freight forwarders give the actual surcharges of goods under or over quoted.

What Factors Contribute To The General Rate Increase In Shipping?

Companies should have rates limits that are generating high profits to the company.

Hence the need for generating rate increase that allows for adjustments according to trending marketing conditions.

Large companies have minimal impacts from the GRI compared to the small companies where the GRI impact is so high.

Below are some factors that contribute to the general rate increase in shipping:

Equipment Cost

There is a drastic increase in equipment cost due to the increase in the need of companies to acquire more advanced equipment. Examples of these technologies that have made the drastic increase are

• Tracking mechanism to satisfy consumer needs
• Measuring and weighing of fright techniques

Electronic logging devices that enable tracking how many hours a driver is working or resting

will help measure and weigh.

We are certain that these kinds of investment costs will reduce, with the carrier’s upfront investments greatly affecting GRI.

The Rise Of E-commerce

The increase in demand for consumers to buy goods online is evident in every nation. It, as a result, has led to an increase in demand for less than truckload.

For instance, a company like Amazon offers free delivery for goods worth$49. With this offer, there is an increase in the number of goods to be shipped using TLT.

With these increases in rates, companies will be able to meet the yearly contribution to the GRI.

For a single delivery using the TLT will be difficult because the cost you incur will be greater than the demand of that single commodity.

Driver Shortage

In our world today, almost every job is autonomous. It means machines can also perform this job.

This technology is constantly affecting the number of drivers. This results in drivers seeking other forms of employment, thus decrease in services they render.

Enhancement of safety regulations by relevant authorities decreases the number of hours a driver can work in a day. With these factors in place, we find it hard to delegate duties to drivers.

Inadequate parking space significantly contributes to a shortage of drivers. Lack of ample parking prevents drivers from making more runs since they park very far away.

Manufacturing Industry Growth

The modern world is significantly rising to greater heights when it comes to the manufacturing of goods. This growth enhances the increased supply of materials to manufacturers, processing and delivering goods to an appropriate location.

Demand for TLT to deliver goods is increasing hence an increase in demand for tracking service mechanisms. This method boosts the rates of the company.

Getting goods into the market is every manufacturers or supply desire, and therefore they will opt to pay expensively for these services.

Fuel Prices

A constant rise in fuel prices is posing a danger for shipping carriers and trucking companies. This does not cause an alarm to use GRI, but still, it shouldn’t be ignored.

Below are some reasons for an increase in fuel cost:

An increase in demand in the market segments will lead to an increase in cost, leaving the suppliers with no option but to conform to these rates to deliver goods to consumers.

How Long Does A General Rate Increase Last?

Despite the set period of announcing GRI 30 days prior, the carriers can make changes. Carriers

should lower these charges anytime they want. It results in a decrease of the freight charges weeks by weeks until the set month elapses.

During the beginning of a new month, the DRI charges shoot up again. This is normally a cycle of lows and highs of the GRI.

What Is The General Rate Increase 2021?

Most countries in the world are experiencing this general rate increase since its implementation in 2021. During this stage, we will focus on implementing the general rate increase on less-than-container -load.

Available tariffs and NRA rates will also be applicable.

These rates are ;

• Per square cubic foot, the charges are $0.05
• For every 100 cubic feet, the charges are $0.15

An increase in general rate increase will always apply even with the existence of current market rates.

Under special cases where predicting the future of the market trends is difficult, constant assessment of the market is recommendable.

What Are The Effects Of GRI On International Trade?

The following are some effects of a general rate increase on international trade:

An increase in demand for imported goods results in an increase in GRI by the carriers. This factor will greatly affect the small-scale business as they try to penetrate the market.

Importers will approach third parties who are all aware of all protocols to follow and what period to follow. It, as a result, reduces the costs the importer incurs while shipping.

Importers will find it hard to import a large number of goods. It is because the carriers will impose high GRI charges on a large number of goods.

Increase in a shift of demand in different trade lanes.

There is a possibility of delayed sales of goods, especially if the importer brings goods on normal days rather than peak seasons. It is mostly applicable in countries that are experiencing winter seasons.

Does The GRI Affect All Countries?

General rate increase almost affects all countries across the globe. This impact is both felt on import and export of goods by the carriers.

But due to the trending factors such as advances in technology, which results in high demand, thus increasing the rates.

It has lead to the implementation of GRI rates on cargo coming from fr east. It means the manufacturer produces quality goods, thus increasing demands, which implies more rates to settle the GRI.

Who Does GRI Affect Most?

General rate increase affects all customers from the exporter, importers, and freight forwarders. Normally, There Are Different Contracts Signed Between The Carriers And Different Parties.

For instance, whether a carrier is NVOCC, the shipper will sign a freight contract to speed up the process.

This increase in GRI affects everyone, whether you are an importer or exporter, due to the increased rates along the shipping line.

Everyone is responsible for payments along the shipping line.

Additionally, GRI greatly affects small companies that are penetrating the market. It is a result of competition from large companies that have enough resources to penetrate the market.

The competitive nature of the market condition will push the small companies to set achievable rates regardless of GRI.

How Do I Prepare For The Shipping GRI?

Shippers ought to have important information entailing service type, weight and dimensions, pick-up and delivery locations, and surcharges.

This information allows the carriers to set regulations in the contract.

You should also be able to understand what are your shipping information is telling you. Its entails;

• Get to know your common types of service.
• Which are some of the surcharges that are making you incur more cost
• Is your distribution network set up well
• Is DIM weight a continual issue

A better understanding of the shipping profile allows you to understand the rate, discounts, and minimum charges clearly.

Are All Shipments Subject To GRI?

All shipments are subject to GRI. It applies to both full container load and less container load. The main impact of GRI to the buyer or the seller is that they have to adjust accordingly to increase in costs of products. This adjustment accommodates the freight charges.

A distinct feature from LCL and FCL is that for FCL, its effect is felt by one buyer and one seller. In the case of LCL, the impact is felt by two or more buyers and sellers.

Does General Rate Increase Impact All Customers?

No. General rate increase does not impact all customers.

Mostly, only a few customers who experience these impact especially those with small companies.

This is because they have to strive and keep up with the market competition.

For large companies who move a large number of goods and have market experience, the GRI will not impact them.

It is because they can easily penetrate through the market and raise the rates to pay for GRI.

How Can I Manage The Impact Of GRI On My Business?

GRI impact is felt by an importer, exporters, freight forwarder, and the carriers collectively or individually.

The only way left at the moment is for you to try and manage these impacts on your business. You can achieve this by;

Shipping before or after the shipping period, especially on trade routes where this charge is applicable

If you are shipping for a large number of goods, negotiate with the carrier to reduce additional charges of the shipment.

You can also approach freight forwarders who are best aware of freight periods. It helps you reduce the impact of GRI on the business.

What Is GRR(General Rate Restoration), And How Is It Different From GRI?

General rate restoration allows you to negotiate for more applicable special rates while shipping through a certain shipping line. This event occurs and is kept within the shipping line.

If you have any questions about general rate increase or any other freight term, Tj chinafreight team is here to help – contact us now.

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

So, keep reading to learn more.

What Is General Average?

General average is a policy that takes the form of an agreement between the shipowner and cargo owner in shipping.

It is based on the principle that the shipowner is only shipping because of the availability of the owner’s cargo.

The principle further states that an intentional sacrifice or expenditure is subject to contribution by all parties in the voyage.

The sacrifice and expenditure in use aim at providing safety for both individuals on the ship and the cargo against unforeseen contingencies.

As a result, the general average attracts various regulations and demands.

For instance, in case of an accident or a loss, the agreement stipulates that each party contributes to the costs associated with the accident.

What Is The History Of General Average?

The General average principle dates back to 1890 after an official recognition and integration into the York-Antwerp rules.

It was to facilitate international uniformity when it comes to shipping activities.

General average addresses constraints that shippers encounter when shipping internationally. These constraints are a result of the laws imposed on different countries concerning shipping requirements.

However, with a general average, these constraints are averted.

Moreover, rules that govern the general average are subject to revisions. The most recent revisions being those of 2004.

The rules state that the general average act enacts when there is an extraordinary sacrifice or expenditure.

Which helps enhance the safety of the cargo and individuals.

These sacrifices must also be intentional and reveal plausible reasons as to why to enact upon them.

Additionally, the general average was initially part of the maritime law. Today, it is categorized alongside the Admiralty law.

What Is The Role Of General Average In Shipping?

General average displays the following roles upon enactment;

• It ensures the individuals in the shipping vessel are safe, and in case of an accident, they are well compensated.
• General average further ensures your cargo is safe from damage and loss.

In case of damage and loss of cargo during shipping, the cargo owner is also compensated.

Additionally, damages and losses experienced by both the ship and cargo are divided among the participating parties.

Thus, the costs incurred are divided amongst the ship owners and cargo owners.

Therefore, the general average in shipping mainly facilitates shipping for cargo and ensures safety for the cargo, crew members, and the shipping vessel.

What Are The Principles Of General Average?

General average bares the following principles:

Principle Of General Average.

This principle postulates a sacrifice put forth to ensure the safety and benefit for all in the ship. However, the contribution to this sacrifice comes from all parties involved during shipping.

The Sacrifice And Expenditures Involved In Shipping Must Be Extraordinary.

There must be concrete actions that jeopardize the safety of the vessel and its components.

These actions satisfy the criterion for extraordinary.

Example, when a ship experiences mechanical damage while on the voyage, it is subjected to peril; as a result, general damage applies.

However, actions that are enacted to bring the vessel to safety are not termed as extraordinary.  As a party in general average, you need to understand that general average applies to only extraordinary situations.

It includes machinery breakdown, heavy weather, collision, and any other situation that results in the detention of a ship at the port.

• General average mandates that the amount of expenditure in general average should be equal to the expenses incurred.

Due to following damage or accident of ship or cargo.

• All rights governing the general average must be fully adhered to. It includes the rights of the shipowner and protection rights under the contract of carriage.

When Is A General Average Declared?

General average is declared when sacrifices and expenditures help avert impending danger to the ship or cargo.

These sacrifices are enacted upon in the event there are dangers such as storms, fires, mechanical breakdown, or any other scenario that calls for sacrifices.

Generally, four conditions satisfy the use of the general average. These are;

Sacrifice

It involves actions such as offloading a ship to reduce its weight and facilitate floating.  Thus, cargo may be lost into the sea to salvage the ship and part of the cargo.

Peril

General average applies to a ship exposed to danger, such as sinking into the sea. Thus, both cargo and the ship are subject to getting lost in the sea.

Expenditure

It involves incurring expenses to obtain machinery or materials used to facilitate the ship’s safety. Such includes purchasing tags to help refloat a sinking ship, storage costs at nearby ports of refuge, and even transport costs to the ports of refuge.

Actions That Facilitate Safety For All In The Ship

It is also known as common safety. Thus, any actions implemented to protect all parties in a ship and facilitate their safety call for a general average.

Thus, the actions serve the interests of the ship, cargo, and crew members.

Who Declares General Average?

The general average adjuster declares general average. The adjuster assesses loss and damage and approves an  general average contribution.

Why Declare General Average?

General average is beneficial to parties involved in shipping, thus the shipowner and cargo owner.

The general average allows the shipowner to enact necessary measures to salvage the ship and cargo.

It might demand the shipowner to reduce the cargo by jettisoning some cargo into the sea. However, with an average general agreement in place, any expenses or sacrifices are due to compensation.

A calculation is done to determine the expenses used during the time of peril to salvage the ship. Its contents include the crew members.

The shipowner and the cargo owner contribute to settling the expenses and losses incurred during the incident.

Therefore, a general average is crucial in helping settle the losses and costs accrued following an unavoidable circumstance that poses a danger to the ship.

Generally, the general average helps ship owners and cargo owners cater to reparations from shipping accidents.

What Is The General Average Process?

The general average process commences upon a declaration of general average on a shipping vessel following an incident leading to peril.

After that, two documents must be signed by the cargo owners and the cargo insurers. These are the average bond and the average guarantee documents.

Cargo owners sign the average bond documents, and the cargo insurers sign the average guarantee documents.

These documents assurance that the involved party is mandated to pay the contribution assessed by adjusters for the general average.

On the other hand, ship owners are backed up with a possessory lien on cargo. It acts as a general average security for all parties on the adventure.

The ship owners are thus mandated to collect the possessory lien for all parties.

It includes cargo interests for the cargo in sacrifice under the general average act.

The adjuster then collects and works on processing the securities presented as soon as possible.

It is until these securities are finally processed that they will realize the cargo to their final destination.

Delays usually occur when the securities take time to be presented to the adjusters. Therefore, to evade such delays, proper communications and updates to adjusters are crucial.

For insured cargo, the process is swift.

The insurers are aware of the requirements and readily avail the security documents for processing to commence.

After that, insurers make necessary payments to the general average.

For uninsured cargo, the process is a little complicated.

Cargo interests are calculated, and the adjuster further subjugates cargo owners to a certain amount as a deposit for the general average.

This amount is usually a percentage of the cargo value. The general average adjuster then makes final calculations on the exact amount of contribution for the general average.

The general average adjuster then calculates the general average expenditure for the cargo.

It is the cost incurred during the adventure by involved parties. After that, the general adjuster makes payment of allowances concerning the York Antwerp Rules.

The amount for contribution is then calculated concerning all the property involved—credit for all expenses accrued in general average, including losses.

Finally, the involved parties pay or receive the stipulated amount in general average following the final general average adjustment.

Is The General Average Process The Same When Cargo Is Booked Via A Freight Forwarder?

Yes, the process of general average follows the same procedure.

However, the adjuster works hand in hand with the freight forwarder to ascertain the real owner of the cargo.

After that, the process continues. The only disadvantage is that it is time-consuming and might result in delays since the freight forwarder has to seek the cargo owner.

Only then will the adjuster present the final general average to the parties involved to release the cargo to the destination.

First and foremost, the general average adjuster affirms whether a cargo is cleared for general average.

Afterward, the adjuster collects the necessary documents as outlined in the process above.

He then uses the available information to calculate the expenses and losses incurred regarding the general average.

The amount that each party is further determined and made available to the stakeholder parties.

What Events And Expenditures Are Likely To Be Involved In A General Average Loss?

The following events are the main causes for losses and result in expenditures contributing to the general average loss.

They include;

• Jettison (This involves throwing off some cargo into the sea or ocean to make the ship light).
• There is also discharge and re-loading cargo.
• Loss and damage associated with the use of fire extinguisher
• Towing services. It applies to ships exposed to mechanical breakdown.
• Salvage services. It includes help from other vessels or property.

These events and expenditures are mostly experienced in a general average loss.

What Is General Average Security And Why Is It Needed?

The value of goods the shipowner withholds while the cargo is undergoing adjustment for the general average to determine its contribution.

It is addressed as a lien for the cargo.  It acts as a payment to the shipowner as the cargo is under process for general average.

Requirements for general average security consist of a list of documents and cash deposits for cargo owners with no insurance policies.

For cargo owners with insurance policies, they produce an insurance guarantee document that serves as security.

It can also be in the form of an average bond document signed by involved parties.

General average security ascertains that the general average payments for losses and expenditures are paid to the shipowner.

It also gives the general average adjuster room accurate calculations to give correct figures for the general average contribution.

What Do The Instructions To Collect General Average Security Include?

If owners require adjusters to collect securities from them, then they should follow the instructions below:

• They should send a draft message to consignees with a brief of the casualty and security requirements.
• Owners should define the forms to be in use and give details or security in need.
• The reporting procedures should also be well elucidated
• Lastly, the agents confirm to the owners that they have received the needed documents for collecting security.

For the documents mentioned above, they should adhere to the following instructions:

The Average Guarantee Document

The form should conform to the required structure by the general average adjuster and should not in any way be altered.

If an insurer wants to use their desired document, consultations with an adjuster should first be made.

Full details concerning the description and identity of the cargo, including container numbers, should also be made available.

Ports of loading and discharge need also be indicated.

Full details of the insurance company should be availed. This makes it easier for the adjuster to follow up with the insurance to settle the general average.

Ensure that the insurance company makes the signature to this document. The broker or consignee’s signature is not applicable in this case.

The Average Bond

The receiver should sign it.

The agent should affirm the full details of the cargo, and consignees are provided.

Additionally, the agent ensures that commercial invoice is readily available in case it is required.

Deposit Receipts

These majorly apply to the uninsured cargo. The adjuster, therefore, requires a deposit amount that is usually a percentage of the value of the cargo.

The adjuster, therefore, ensures to produce an open invoice to the cargo owner.

Deposit receipt should be completed carefully.

A photocopy of the deposit receipt is detained for filing.

For the depositor to get a refund and collect his cargo, he must produce the original deposit receipt. It happens after he has made the required general average contribution.

Lastly, any additional requirements and instructions to the depositor are conveyed to the owner.

Who Is An Average Adjuster And What Is Their Role In General Average?

An average adjuster is someone who specializes in conducting general average assessments and calculations.

He prepares the claims and determines each party’s contributions to help settle losses and damages to cargo and ship.

Therefore, it is best to sort help from an average adjuster in the event of a general average claim.

What Is The Typical Bill Of Lading Terms On General Average?

The bill of lading terms for the general average are as follows;

General average adjustment should follow the York Antwerp rules as revised despite the choice of port.

The adjustment applies for all types of goods, whether or not on deck, and this extends to animals.

General average also accounts for all goods, including those in italics that the carrier takes no responsibility for.

The cargo owner should present a cash deposit or other security requirements to the adjuster before making the delivery of the cargo.

If the shipowner delivers the good without claiming for the average bond and other security, he caters for the general average contribution.

The general average contribution is payable according to the York Antwerp regulations unless otherwise stated.

How Does General Average Impact Importers And Exporters?

General average affects importers and exporters in the following ways:

They suffer delays associated with the process of general average.

They may end up losing part or all of their cargo. The contributions for the general average sometimes might be extreme.

They experience extra costs associated with import and export excises.

These include fines, penalties, or reverse charges from clients in need of the supplies from the cargo.

The effects are grievous in an LCL shipment.

If one of the cargo owners fails to adhere to the general average requirements, the whole shipment is detained.

These further result in inconveniences caused by delays.

Cargo owners suffer from expenses, especially when the calculated general contribution exceeds the value for their cargo.

They end paying a higher value than the value of their cargo, resulting in a loss.

Additionally, for a large cargo, the owner is bound to suffer more loss. An average bond is required before the release of the cargo.

Average bond mandates that security is calculated as a percentage of the value of goods available.

As a result, a cargo owner with a large shipment bears a significant value that exudes loss on his end.

Is There A Time When General Average Is Not Used?

No, there are some situations and cases that do not justify applying the average general principle.

These situations include:

Suppose damage or loss of cargo is caused by an individual directly. In this case, the individual is held accountable for the loss.

If the ship is involved in an accident that leads to loss and damage of cargo, then the general average does not apply.

Lastly, you cannot use a general average if the ship and cargo are not directly exposed to danger that leads to peril.

The loss and expenses experienced should portray an act of saving the ship and cargo.

If this is not the case, the general average does not apply.

What Is The Difference Between General Average And Particular Average Loss?

General average and particular average loss might qualify as marine insurance plans for partial losses. But they have aspects that differentiate them from each other.

General average is a loss that results from a general average act.

While particular average losses are unforeseen losses that result from accidents that lead to peril.

General average loss and particular average loss differ in the following ways;

The general average loss is beneficial to all interests.

While the respective average is for any of the interests in connection with the loss.

The general average loss is voluntary, while the particular average loss is majorly accidental.

The general average loss is shared by all those who are partakers in the general average act. While an insurer pays a particular average loss.

General average loss includes sacrifice and expenditure, which contribute to the loss, while particular average loss is caused by damage or loss.

The cause of general average loss does not qualify for insurance, while the cause for particular average loss can be insured.

Is General Average Independent Of Insurance?

No, the general average exists as a separate entity from marine insurance. The general average act protects the cargo, ship, and crew members from the loss of a voyage.

It is upon the owner to take an insurance plan that will enable him to pay the calculated general average contribution calculated by the adjuster.

Why Is Marine Cargo Insurance Important During Ocean Shipping?

Shipping is exposed to many dangers that can cause damage or loss of cargo during the journey. Insurance policies help the owners of cargo recover or rather get compensation due to these losses or damages.

How Much Does Cargo Insurance Cost?

Cargo insurance is based on a percentage of the value of cargo that is under insurance.

What Are Some Examples Of General Average Events?

• Acts of God or unavoidable circumstances such as storms
• Latent defects in the ship’s hull or machinery or machinery breakdown on the ship
• Un-seaworthiness of the vessel. Sometimes the ship is not able to withstand the sea.
• In case of criminal acts or negligence by captain or crew
• Perils, danger, and accidents at sea
• Fire
• Theft

Is General Average Applicable To Airfreight?

General average is not yet incorporated for airfreight. Nonetheless, some events and circumstances qualify for a general average policy.

It includes scenarios that prompt an aircraft to jettisons to keep it flying up the sky.

Other events that call for the application of general average in airfreight include;

• When a plan engages voluntary belly landing for safety
• When a plane calls for help in the event, it crashes in the sea
• Airplane making an emergency landing at a nearby port for repairs.

At Tj chinafreight, we offer complete freight forwarding solution when importing from China.

Contact us now for all your shipping needs from China.

If you’re importing from China, you have probably heard a holiday called the Golden Week.

Just like Chinese New Year, there are a number of factors you need to about Golden Week.

Let’s dive right in.

What Is Golden Week

It is a week that celebrates China’s national day.  The Golden week allows the Chinese people to travel across the world as they enjoy this day.

It is given the name Golden week following the growth of tourism in China during this time, contributing to China’s economic growth.

How Long Do Chinese Golden Week Celebrations Last?

The Chinese Golden Week lasts for seven days. It is from the 1^st of October to the 7^th of the same month. The one-week celebrations were in reverence to the People’s Republic of China established in 1949.

What Happens During The Chinese Golden Week?

During this time, the workers of different manufacturing industries and businesses break for the seven days of the Golden Week.

It is when employees get to meet up with friends and family to have fun and bond more.

This means that any business transactions are put on a halt until the Golden Week is complete.

Shipments tend to delay, and businesses from other countries that rely on supply from China’s industries run short of stock during that week.

What Is The Difference Between The Chinese Lunar New Year And Golden Week?

The Chinese Lunar year allows Chinese people to celebrate the Chinese New Year in the Chinese calendar.

It takes place at the beginning of the year between January and February.

On the other hand, the Chinese golden week takes place on the first seven days of October.

The Chinese Lunar year celebrates a new year in the Chinese calendar. While the Golden week celebrations celebrate the Peoples Republic of China attained in 1964.

The two celebrations also differ on the time durations for celebrations.

The Chinese New year celebrations last for two weeks, while the Golden week celebrations occur within a week.

What Are The General Impacts Of Golden Week In China?

The golden week has had tremendous effects on business in China and worldwide following the closure of businesses and china factories.

The government as well observes the Golden week celebrations and thus takes a break from its operations.

This translates to processes that require government clearance certifications being put on a halt until the week comes to an end.

Commercial products are also suspended from being imported or exported following the increased flow of incoming and outgoing tourists.

Ports are also on schedule to run but with limited staff, as most of them have departed for the golden week events.

The Golden week impacts can trickle down to affecting the global business environment. It is because China acts as the leading global supplier for various businesses across the world.

Since various Asian countries observe the golden week, trade operations significantly decline since all staff members are on holiday.

How Will Golden Week Impact My Shipments From China?

Shipments that happen days before the golden week of China are exposed to expensive rates for air freights and ship freights.

There is also increased demand for shipments from China hence the cause of the high rates charged for shipping.

This is because of the increased demand for stocks from business persons before the commencement of the golden week.

It helps boost their sales once factories shut down in China during the golden week.

Does The Chinese Golden Week Influence Blank Sailing?

Yes.

However, blank sailing happens after the events of the golden week due to bulk demand for goods following the closed factories.

Can The Golden Week Impact My Supply Chain Even If I Do Not Ship From China?

Yes.

The Golden week has resulted in the increased scarcity of capacity for shipping, especially to shipping services within the Asia-pacific region.

Other Asian countries fully observe the Golden week celebrations.

Asian countries serve as the other leading supplier of products and services to other countries.

Therefore, if you are not shipping from china, you are most likely shipping from these Asian countries.

It affects shipping even though it is directly not from China.

Additionally, shipping containers become scarce and unavailable all through from August to September across the Asian-Pacific countries.

Do Freight Rates Hike During The Golden Week In China?

Yes, there is increased demand for higher space for shipping; all shipping lines resort to hike their price pre and post the golden week events.

The golden week also causes the truck services to increase their prices.

Generally, shipping during the golden week and days before and after the golden week is very costly due to increased freight rates.

Does The Golden Week Celebrations Affect Contract Manufacturing In China?

Yes, China manufacturers also observe the golden week celebrations. As a result, they will close their dealings and get back once the celebrations are over.

The golden week celebrations affect China manufacturers and halt all businesses and factory dealings to observe the week.

How Should I Prepare For Golden Week?

The golden week presents many inconveniences, especially to clients expecting shipments from China and neighboring Asian countries.

However, as a business owner, there are five ways in which you can prepare yourself to help evade the skirmishes of the golden week.

First of all, you need to have a freight forwarder in place. Freight forwarders are convenient in terms of getting in touch with the intended supplier.

Additionally, freight forwarders also have a transparent background on what happens during the Golden Week.

Freight forwarders help advise you on the best time to conduct sales and highlight the best means of transport during this time.

They also get to assist in presenting goods that are urgent to clients on time.

Secondly, arrange to book your shipments earlier to the golden week events. It is advisable that if you are using air freight to make bookings for shipment two weeks earlier.

If you are shipping by ocean, make preparations one month before the golden week. This helps your goods avoid the congestion caused during shipping.

Earlier bookings also allow for your goods to arrive on time.

Another way to adequately prepare for shipments for Golden week is opting for FCL shipping rather than LCL shipments. Most ports operate on temporary staff, and LCL requires offloading at various stop points.

This creates inconveniences since there are no workers to make the offloads; hence the goods will delay at the ports until the staff is back.

It is best to use FCL shipments to avoid these hurdles as they require less interference with the cargo hence easy to ship during the Golden Week.

Another way to prepare for the Golden week is to carefully select the best and convenient means of transport. Air transport might be the fastest. However, congestion at the airport can result in your cargo getting rolled.

This is because transport means that offer the shortest time for travel is prone to overbookings.

A multimodal means of transport that incorporates various means of transport is best for use for urgently needed goods.

Moreover, to avoid incurring chassis and trucking fees, PTL offers the best solution. Partial Truck Load does not have to make stopovers at trucking terminals.

Thus there are no trucking fees attached.

There are also incidences of chassis shortages which prompts trucking companies to incur chassis split fees to avail the chassis at the port.

These costs are avoidable with the option of using the partial truckload option.

Is Consolidated Shipping A Good Option Following The Chinese Golden Week?

No. It is because consolidated shipping calls for the need to make various stops at terminals to unload cargo.

It creates inconvenience since time is of the essence following the massive demand for shipments during this season.

Opting for the FCL shipping method is the most convenient and less time-consuming for shipping around the golden week in China.

Do Things Get Better Immediately After Golden Week?

No, it takes quite some time before things get back to normal after the Golden Week.

Factories get back to deal with the pre-dominant backlog at their firms. Cases of shipments getting rolled at, canceled, and prone to blank sailing are very rampant and need to be addressed as well.

Therefore, there is still much backlog to deal with before getting back to normal after the golden week.

How Do I Avoid The Freight Capacity Crunch During Golden Week?

Freight capacity crunch stands out as the most common problem experienced during the Golden Week.  Therefore, to avoid inconveniences such as cargo rolling, consider the following.

Opt for the means of transport that have the longest transit time. During Golden week, most cargoes tend to book shipment methods with the fastest transit times.

This results in overbooking, which increases the chances of cargo getting rolled. On the other hand, slower means are less likely to expose shipments to getting rolled, and there is less overcrowding.

Another significant way to avoid a capacity crunch for shipments that travel by land is to include an alternative to the regular discharge port.

It allows the cargo to opt for alternatives that are not congested, especially during the Golden Week. Chances of even falling for a cheaper rate are higher with this shipping model.

What Are The Golden Week Effects On E-Commerce Shipping From China?

The e-commerce sector thrives primarily during this season. This is because most people want to enjoy their holidays with family and friends.

Most orders are thus made through online platforms since most of the businesses are closed during the golden week season.

Generally, spending on e-commerce is usually on a large scale during the golden week in China.

Here are more information about e-commerce shipping from China.

What Is The Best Incoterm When Shipping During The Golden Week Rush?

Incoterms for shipping during the Chinese golden week are dependent on the space to which the cargo occupy. Additionally, it is dependent on ports of origin and their destination.

There are numerous incoterms, including FCA, CPT, CIP, DAT, DAP, etc. They are classified into various groups, each defining the terms for the incoterm.

Freight forwarders come in handy in helping to choose the best incoterm for your cargo, especially during the golden week.

It is essential to consult with them and agree on the best incoterm during this season as they all have different properties.

What Are The Risks Of Ocean Freight Transport During Chinese Golden Week Rush?

The significant risk of cargo that opts for ocean freight during this season is the risk of being rolled over.

This means that the cargo might miss being on board the shipping vessels.

This is majorly caused by the overwhelming capacity caused by the high bookings by various clients.

There are also risks of increased ocean freight rates due to the increased bookings.

Is The Cost Of Cargo Insurance Affected By The Chinese Golden Week Celebrations?

If your cargo is not insured and is doing so during the peak season, prices might differ slightly, or sometimes they do not change.

The main aim of insurance covers is to facilitate compensation for your cargo in theft or damage.

Cargo is highly susceptible to damage or theft, especially during the peak season, such as the golden week in China.

LCL shipments are most prone to theft because of the various handlings at different terminals.

It is advisable to thus acquire an insurance cover for your cargo to evade such misfortunes falling on your cargo.

What Are Some Tips For Shipping During Golden Week?

Below are some of the ways that shippers can create convenience during the Golden Week.

Plan Ahead

This is achieved by making early bookings for freight. Thus for air freight, a week earlier and for ocean freight, a month earlier is advisable.

Also, avoid using LCL shipping during the golden week. Majorly use the FCL shipping method.

Avoid shipping containers that are likely to get rolled. For example, the 45HC containers are likely to be rolled due to their large size.

Lastly, avoid making bookings for multiple containers under a single bill of lading.

Account For Extra Fees

Shipping during the golden week is bound to attract various types of fee charges. This includes a fee for trucks as they wait for the cargo at the port.

There is also a split chassis fee imposed on the chassis as they are transported to the port. Moreover, if you are considering using the air freight and ocean freights, be ready for extra charges,

Airfreight and ocean freight rates increase following the demand for goods during the golden week.

Ensure That All The Required Documents Are In Line With Customs Requirements For Shipping

The last thing you would wish for during the Golden week is for your cargo not to be authorized due to missing information.

These include HTS codes, commercial invoices Cis, and other relevant documentation and information for your shipment.

How Can A Freight Forwarder Help Mitigate The Effects Of Chinese Golden Week?

Freight forwarders can be of help during such times of acquiring shipments from China.

As a result, freight forwarders familiarize themselves with other means for transportation to which they can use to aid shipments during this time.

They further make price comparisons for these modes of transport and offer tracking services to clients from shipping to the arrival of the shipments.

Freight forwarders also keep clients in the know following shipping pre and Golden post-week.

Freight forwarders also make sure that your cargo reaches the stipulated destination despite constraints of temporary staff at the vendors’ sites. It is common for most staff to switch jobs during the Golden week events.

What Is The Safest Way To Pay Chinese Suppliers During The Golden Week?

Various suppliers have different paying methods that every client adapts to.

Freight forwarders understand the various payment methods and advise accordingly on how to pay.

In terms of safety, the suppliers have adapted the safe methods for which to make payments to.

Therefore, as a client, it is best to familiarize yourself with the stipulated payment methods.

Lastly, it is advisable to make payments before the golden week. It assures the possibility of your shipment arriving on time.

Moreover, paying suppliers during the golden week is risky as most suppliers might adapt to new businesses.

It results in long and strenuous processes of recovering back the money.

The safest way to therefore pay suppliers is through making early bookings before the golden week. If the golden week catches up with you, it is best to wait for the manufacturers to start their operations again.

This way serves as an assurance for getting the goods you have paid for.

How Does China Warehousing Work During The Chinese Golden Week?

Warehousing China staff during this Chinese special week are also on a break as they celebrate the golden week.

Thus most warehouses are closed down during the week. A few maintenance staff who are on shifts help to keep tabs on the warehouses.

However, typically, all warehouses are closed for business during the Chinese new week season.

Are There Any Pros To The Chinese Golden Week?

The Chinese Golden week does not entirely result in negative influences. It also presents a business opportunity for the decorative and hospitality Industry.

Vacation travelers in Chinese ought to be among the booming businesses in Chinese during this time. Most people are on travel to meet up with friends and relatives and have a good time.

There is also a significant sale on luxury items and decorative items such as the lanterns at fireworks that light up during the occasions.

The Chinese golden week records an increase in domestic shopping among Chinese. Therefore, any business that avails its products in the Chinese market during the Golden week makes massive profits.

How Do I Handle Post Golden Week Backlog?

Backlog, especially during the post-Golden week of China, can be very frustrating, especially for business owners who urgently require their cargo.

However, things can be hastened for those who have urgent shipments. Freight forwarders come in handy in such situations.

Making communications to vendors as well as freight forwarders concerning the urgency of the cargo is advisable.

Provide all the necessary information and logistics concerning the cargo and let the freight forwarder help you get your cargo on time.

For all your freight forwarding services, contact Tj chinafreight now.

If you have any question about inherent vice, your answer is right here.

This is because this guide covers everything you need to know about inherent vice.

Keep reading to learn.

What Is Inherent Vice In Cargo Insurance Terms?

Inherent vice is a charge that is set aside for cargo insurance policies.

 It acts as compensation for damages that might occur due to the instability nature of the products.

Inherent vice mostly occurs during the shipping of the product.

Normally, it is hard to ensure the inherent vice from damages and loss since these defects are not physical.

As a result, the aspect of visibility to the carrier or the insuring company is unachievable.

How Can Inherent Vice Damage Cargo?

The unpredictability of the nature of the products will result in an inherent vice.

This normally causes damages to the cargo due to the nature of the product.

For instance, grains that are not properly dried will absorb moisture from the package which will result in fermentation.

These damages are mostly internal unlike inflicting physical damages as a result of the carrier’s negligence to the products.

When Does The Inherent Vice Exclusion Apply?

Below are some of the incidences under which an inherent vice exclusion will apply;

• Deterioration of the food value due to improper storage measures.
• Films that deteriorate over time as a result of chemical instability.
  This occurs if there is no equal proportionate mixture of the chemicals.
• Deterioration of quality of books as a result of the acids on the papers which is a result of the manufacturing process.
• Rapid fermentation or combustion of improperly dried grains.
  The grains will absorb moisture in the package which will result in fermentation.

What Are Examples Under Which Inherent Vice Exclusion Would Apply?

Different products have an operation timeframe or the duration in which we consider them better quality.

Over the years the timeframe reduces leading to an increase in vulnerability of these products.

In our case, inherent vice falls under the following classification and a list of examples where inherent vice exclusion would apply.

They include;

Short-lived, Temporary, Or Impermanent Materials

Examples under which inherent vice under this category include;

• The acidity in papers leads to deterioration over a while.This is notable especially when you leave used or unused papers over a while they will start to fade off.
• Fundamental chemical instability in cellulose acetate film as a result of slow degradation of chemicals resulting in vinegar syndrome.You can easily detect it due to the production of the vinegar smell.
• Natural degradation of the magnetic tapes.This occurs mostly in cassettes and videotapes; they tend to have scratches over time thus hindering continuous filming.
• Poor leather fades over a while as a result of exposure to the light.

Structural Nature

Examples include;

• Leather: levels of acidic chemicals result in corrosion.These acid levels cause a reaction with metals surrounding the leather materials.
• Paints that are not properly mixed will result in peeling or even fading over time.

History Function

These products have a history of corrosion due to humidity exposure.

Examples;

• Ceramic bowl
• Stained window glass
• Stamps

What Other Common Cargo Insurance Exclusions Should I Be Aware Of?

Insuring the cargo during shipping into the destination is very important.

It allows compensation in case of damages or losses while under shipping.

Note, as much as insuring the cargo save you from losses, there are common cargo insurance exclusions you should be aware of.

Most insurers will not account for some of these cargo insurance exclusions thus planning well will allow you to avoid them.

Some of these cargo insurance exclusions include;

• The inherent vice of the product.
• Latent defect.
• Loss as a result of poor/improper packaging.
• Loss as a result of delay or loss of market.
• Willful misconduct by the assured.

What Does Cargo Insurance Generally Cover?

Cargo insurance covers you and the business from encountering losses as a result of damages or losses during the shipping.

You will receive a compensation amount which you are insured for in case of the following incidents;

• Piracy
• Abandonment of the cargo
• Vehicle accidents or accidents as a result of different modes of shipping
• Customs rejection
• Unavoidable natural disasters
• Acts of war

Why Am I Not Eligible For A Claim In Inherent Vice?

Eligibility of the claim for inherent vice depends on the type of insurance policy you have for the cargo.

Mostly, this insurance policy will cover certain incidents with an exemption of damages as a result of inherent vice.

This will result in a lot of questions regarding eligibility.

Here are some of the reasons why you may not be eligible for a claim in inherent vice;

Contract Terms:

It’s important to read through the terms of the contract before signing to get the assurance of the claim for inherent vice.

Lack Of Causation:

Lack of the relationship/connection between the damages and a specific carrier will reduce the eligibility.

Example, we know that iron boxes are prone to rusting due to moisture in the shipment this is an interior element.

In cases where the shipment drowns in water, the carrier will be responsible for the damages.

Therefore, you need to insurer the cargo for such incidents.

How Do I Validate Cargo That Is Damaged Due To Inherent Vice?

To validate a cargo with damages as a result of inherent vice, you should first evaluate the following incidences;

1. You should evaluate if the damage was a result of the nature of the product. For instance, spoiled food or fermentation and combustion of grains.
2. Evaluate if the carrier is at fault for improper handling of the products.

For instance, forgetting to put water inside the container in a refrigerator.

If indeed the damages are a result of inherent vice, look for insurance policies that cover part if not all the damages.

What Should I Do In Case Of Loss Or Damage Due To Inherent Causes?

If there is loss or damage on the product as a result of inherent vice, provide a burden of proof to state otherwise.

This burden of proof will justify that the carrier is liable for the damages during shipping.

For instance, if the product absorbs moisture as a result of a moist container this will fall on the carrier.

If you prove the carrier is responsible for these damages, the burden shifts to the insurer.

The insurer will try and prove that the damages fall under the exclusion.

If the insurer’s proof is not evident enough, they will compensate you for the damages.

Am I Eligible For A Concurrent Causation Claim If One Of The Risks Is Inherent Vice?

We can look at the eligibility of a concurrent causation claim in two ways;

If one of the concurrent causations has coverage and the other one is not and there is no exclusion, the insurer will be liable.

Meaning, the insurer will be liable for the losses and damages of the goods even when the other risk is an inherent vice.

In this case, the insurer will pay for the losses and damages in regards to proportions of the insured concurrent causation.

The other scenario

When one of the concurrent causations is an insured peril and the other one is not yet excluded, insurers will not be liable.

What Is The Difference Between Inherent Vice And Latent Defect?

They are distinct differences between these two common types of cargo insurance exclusion.

Inherent vice is loss or damage of goods during shipping and this damage is visible during inspection.

Inherent vice occurs as a result of the underlying conditions and the physical nature of the goods.

Losses and damages in inherent vice are a result of internal causes rather than external causes.

For instance, an iron box tends to rust when it meets moisture.

With latent defects it’s hardly to note the defects during the inspection of the product.

Normally, we consider these damages as a result of poor quality of labor or poor manufacturing of the goods.

For instance, unnoticeable cracks on the products which majorly affect its performance.

Does An All-risk Policy Cover Against Inherent Vice?

An all-risk policy is an insurance policy that covers all risks that the agreement does not explicitly exclude.

If the contract /agreement does not have exemptions, then the insurer will account for every risk.

The all-risk policy covers fortuity incidences that occur as a result of external factors.

This means that all the risks should be a result of unpreventable accidents such as earthquakes or storms in the oceans.

The all-risk policy also covers peril policies that occur as a result of external factors such as fire.

There is an exemption of damages as a result of inherent vice.

Inherent vice is not a fortuity accident but rather an accident as a result of the nature of the product.

As result, the all-risk policy does not cover the inherent vice.

Is The Named-peril Policy Any Better?

Named peril policy is mostly applicable at homes or in businesses.

This insurance policy covers losses you incur on the property from different dangers or hazards.

Some of the dangers you will find coverage under the named-peril policy include;

• Floods
• Fire
• Earthquake
• Theft
• Hailstorms
• Explosion and lightening

Purchasing/acquiring a peril policy does not provide a possible solution.

This is because there are exemptions too.

Peril policy is much cheaper if you compare it to comprehensive coverage which provides coverage for all peril policies.

Note, a peril policy will work well with an all-risk policy because it covers all damages as a result of external factors.

From the above description peril policy is no better while the damages of the products are a result of inherent vice.

This means the peril policy cannot provide coverage of the inherent vice thus the insured will receive no compensations.

Are There Exceptions To The Inherent Vice Exclusion?

No, there are no exceptions to the inherent vice exclusion.

The inherent vice exclusion does not receive an interpretation that broadly sidelines the insurer.

This means will be liable for cargo that can withstand external factors.

As an insurer, you should be careful while relying on the inherent vice.

This means ensuring there is no fortuity causing loss or deterioration of products completely.

Additionally, you should ensure you have complete proof of the inherent vice that leads to the deterioration of the product’s value.

Is There A Cargo Insurance Policy That Covers Inherent Vice?

No, cargo insurance does not account for inherent vice.

The insurance policy will cover all other cases leaving out the inherent vice cases. This means there is no compensation for damages to the products.

Inherent vice is a result of interior cause due to the nature of products.

As stated earlier the insurance company covers external damages soaking products as a result of rain.

Before shipping, it is important you first evaluate what the insurer insures and what is not insured.

What Is The Difference Between The FC&S (Free Of Capture Seizure) Clause And Inherent Vice In Cargo Insurance?

The free of capture and seizure clause is a result of loss of goods due to;

• War
• Capture from unknown people
• Seizure from relevant authority or government.

The insurer is not liable for this loss and the insured should seek assistance from the war insurance policy.

With inherent vice in cargo insurance, the insurer is not liable for inherent vice which is a result of internal factors of the products.

The cargo insurance policy does not provide the inclusion of the inherent vice.

If the insured can provide sufficient evidence of the damage as a result of external factors during shipping, there is a guarantee of compensation

How Much Is Cargo Insurance?

The insurance will account for the total value of the shipment including the limits coverage when there is loss or damage to the shipment.

You should include the price rate of every insured item on the shipment.

This price rate reflects the replacement cost in case of damages or loss of the shipment during shipping.

Research on the best-selling online website will also help in case you are unsure of the price rates.

To calculate the total cost of the insurance, use the following formula;

The total cost of the shipment*insurance rates= Total cost of the insurance

How Much Cargo Insurance Do I Need For My International Shipments?

While analyzing how much cargo insurance you need for international shipment, you need to understand the term under-insuring.

This commonly applies to the importation of second-hand items.

If you are importing second-hand items, it’s important to disclose them to the insurer.

This allows the inclusion of landing charges, duty charges, and freight charges to the replacement amount.

Failure to do this and the market value of the goods is below the replacement amount results in average.

This mostly occurs as a result of depreciating the market value of the goods.

You should not over quote the gross value of the goods before checking how much the insurer is offering to reduce under-insuring.

This will reflect your side as a loss since you will have to account for the difference.

For instance, if you ship a table that costs $90 to replace and your quote reads $50, you will be liable for margins.

What Are Some Tips For Getting The Right Marine Cargo Insurance Policy?

Having a marine cargo insurance policy is of great importance. Ensure you buy the best quality insurance policy.

Below are a few tips that will enable you to determine/choose the best marine cargo insurance;

Evaluate The Different Types Of Losses And Damages They Cover

You should always choose an insurance policy that covers all risks.

This means the insurer will account for all losses and damages if there is no exemption made.

Some of these losses include rain, lightning, and natural calamities which are unpreventable.

It is important to make a comparison of the different marine insurers since there are great variations.

Note, there is an exemption of the wear and tear from the marine cargo insurance policy.

Evaluate Claim Settlement

It is important to be able to determine on what basis is the coverage given.

That is whether it is agreed on value or actual cash value.

For agreed value, the marine insurer will account for the total amount indicated on the policy document in case there is a loss

With actual cash value, the coverage is low in comparison to the agreed policy. Normally, the present market value determines the coverage of the products.

Determine The Tenure Of The Policy

This means you should evaluate the frequency at which you transport goods.

You can opt for the apt policy tenure if you conduct frequent transportation of goods.

This apt policy tenure provides you with variations such as;

• Annual turnover policy
• Annual policy to specific voyage policy
• Open policy

We recommend that you choose the annual or the turnover policy as it provides full coverage throughout the year.

How Do I Avoid Coverage Gaps When Getting Marine Cargo Insurance?

If you are unfamiliar with how an insurance policy works, you can hire an expert with this knowledge.

They will ask questions on your behalf to avoid coverage gaps.

These questions include;

• Who is responsible/liable for insuring the goods, is it the buyer or the seller?
• When does the title of goods change from the seller to the buyer?
• What are the insuring terms?
• Where is the location of the insurance company?

For instance, if the location of the insurance company is in the US it makes it hard for the claiming process due to the timeframes.

If you ask questions, there is a probability of getting accurate information of the coverage.

Is It Wise To Get Cargo Insurance Through My Freight Forwarder?

Yes, there are no doubts as to whether you can involve a freight forwarder in the cargo insurance process.

If you are an occasional shipper or shipping a low quantity of products, freight forwaders are the best deal.

• Freight forwaders will get the best deals for you.
• Secondly, they have more experience and good relations with some of the insurance companies thus fastening the whole process.

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

Contact us today when shipping from China.

In this guide, you will find all information about international ship and port facility security code.

So if you want to learn more about ISPS, read this guide.

What Is ISPS?

ISPS is otherwise known as International Ship and Port Facility Security Code.

It refers to a security measure established to fight insecurity and enhance the safety of ships, ports, and cargo.

The establishment of ISPS resulted from the realization that sea freight or transport was prone to risks just as air transport.

It awakened the idea of having specific security measures to handle ships and port facilities in case of attacks or threats.

When Was ISPS Code Adopted?

The International Ship and Port Facility Code were enacted on July 1^st, 2004, by IMO.

It states the responsibilities to the shipping companies, the government, port staff, and shipboard workers to spot any threat.

The responsible bodies should also take preventive measures on the security of the port or the ship operating in international trade.

ISPS is applicable on all ships participating in international voyages, not excluding;

• Cargos ships not less than 500GT
• Voyager vessels and high-speed passenger craft
• Amenities in the port used by the ships.
• Mobile offshore drilling units.

What Are The Main Objectives Of The International Ship And Port Facility Security Code In Shipping?

Below are some of the goals that ISPS is aiming to achieve;

• To observe people’s activities and cargo operations.
• To identify any threats on onboard vessels and develop the necessary security measures suitable for the situation.
• To put in place what roles and responsibilities will be played by the local administrators, government, national and international port industries.
• To gather information about security threats faced in the marine industry and establish measures to handle them.
• To identify any problems facing the security of the ports and ships and come up with solutions.
• To facilitate efficient exchange of security data with other ports and ship owners’ networks globally.
• To assign port state officers and onboard officers with their respective roles and responsibilities in handling international-level security threats.

Who Has To Comply To The ISPS Code?

Being part of SOLAS, the ISP’s code applies to all the 148 contracting parties to SOLAS required to comply with it. ISP’s code applies to;

• Ships that are cruising internationally (this includes passenger ships and cargo ships having a lot less than 500GT, among others)
• Port facilities that serve these ships.

What Is The Importance Of ISPS Code In Shipping?

The ISP’s code’s primary purpose is to ensure maritime threats posed on port facilities and ships are detected early and security actions are taken.

Aside from that, here are other benefits of the ISPS Code;

• Enhance safety and security of port facilities and ships – This, in turn, reduces any risks as shipping vessels rarely have any protection weapons against piracy, stowaways, or terrorist attack.
  Therefore, the ISP’s code prevents the entry of explosives or weapons that might cause harm to ships and port facilities.
• Provide a secure working environment for maritime workers and thus facilitate efficient and effective working conditions.
• ISPS has an improved documentation process owing to the standard procedures everywhere.
• With ISP’s code, the flow of cargo and personal access is better controlled and monitored.

What Are The Requirements Of the ISPS Code For Ships And Port Facilities?

To achieve secure and safe conditions on ships and ports the ISP’s code includes several functional requirements which are not limited to;

• Go through all the data received.
• Ensure that dangerous weapons, explosives, and incendiary devices have no access to the port facilities and the ships.
• Plan and conduct training, exercise, and drills of the ship crew to familiarize them with security plans. This way, they shall be well prepared to handle any threats or incidents on time.
• Collect all data regarding security from various contracting government agencies.
• Come up with a proper security strategy after conducting an assessment on the security.
• We establish the proper communication protocols for port facilities and ships to facilitate a smooth exchange of information.
• Prevent any unauthorized person from gaining access into the port facility or ship and other prohibited areas. It will still apply even when the unauthorized party is not a threat. Any unauthorized person is regarded as a potential threat.
• Come up with different ways of raising the alarm in case of a security threat or incident.

What Is The ISPS Code Meaning For Ships?

Mostly, there is a higher risk of experiencing security threats on cargo ships since they lack means of protection in an attack.

Such attacks can range from piracy, stowaways, and terrorist attacks, among others, and threaten the crew and the ship.

To pin down and curb such security incidents. The security of the ship should be enhanced. It is the responsibility of the administration as it evaluates and decides whether the ship security plan should be approved or not.

The same administration also analyzes amendments made to old plans and decides whether to approve them.

The company has the mandate to provide training. The certified officers can assess the security of the ship on board.  Do not forget that they are the only ones allowed to perform this task.

Timely evaluation of the security plan implemented for the ship allows identification of any shortcomings. It also helps to amend the current security plan for the ship.

After that company reviews, documents, retains, and accepts the evaluation or assessment of the ship’s security.

What Does ISPS Code For Port Facilities Cover?

The ISPS code for port facilities provides a framework used by port facilities and ships to collaborate to identify activities.

That otherwise poses a threat to maritime security.

ISP’s code covers the establishment of roles and responsibilities and the provision of methodologies used to assess security.

Additionally, the ISPS code provides ways to raise alarms as well as collect and assess data.

So generally, it covers security regarding any terrorist threats and incorporates robust risk management strategies.

What Are The Three Levels Of ISPS Security?

Security levels aim to explain current situations about security threats to a country together with its coastal region and ships that dock in the ports.

The port officials and ship cooperation are responsible for making decisions about these security levels based on the present state of security internationally.

The three levels of ISP’s security include;

Security Level 1

This level can be described as the average level at which the ships and ports operate. This level does not require a lot of security measures.

Some of the measures carried out at this level include;

• Minimum entry to the ship is upheld every time.
• Minimum security measures are maintained both in port and onboard.
• Restricted areas are keenly observed at all times.
• The ship and port operations are based on the security plan for the sip and port facility.

Supervision of the loading and unloading cargo and stores is done by the ship and port officials, ensuring minimum security criteria and access control.

Security Level 2

This level comes through when the security risk is heightened. At security level 2, extra security measures will be performed, including establishing SSP to protect against the heightened risk. Below are some of the measures carried out at level 2;

• We are appointing extra patrolling personnel for the access areas.
• It is setting aside an area that’s controlled on the shoreside of the ship.
• By Conducting a full or partial search of the ship
• Guiding all guests onboard.
• We are carrying out more security briefings to the ship’s personnel regarding the security levels.

Security Level 3

In security level 3, additional security measures are put in place for an impending incident or one that has already occurred and must be maintained for some time.

As much as there might not be any particular target sighted, the security measure needs to be handled accordingly.

Some of the measures that have to be enacted are not limited to;

• Eviction of the ship if need be.
• We are restricting entry to a single controlled access point.
• Keeping a close eye on how people move on board
• Restricting entry only to authorized personnel.
• By Canceling cargo operations and stores
• Cancelling of embarkation and disembarkation

Who Is Responsible For Setting Security Levels Under The ISPS Code?

All security levels are agreed upon by the ship’s cooperation and the port officials maintaining the present state of security internationally.

The local government is responsible for putting in place the security level. To see to it that port states and ships are informed before accessing the port.

Does The International Ship And Port Facility Security Code Apply To All Ships?

The international ship and port facility security code doesn’t apply to all ships. Some of the ships excluded are not limited to;

• Warships
• Naval auxiliaries
• Ships that are only used on non-commercial services controlled by the government.

Is ISPS Code Mandatory Or Voluntary?

To answer this question, we first must understand the three security levels and two parts of the ISPS Code. The parts are not limited to;

• Part A – here, guidelines are mandatory to explain the employment of the company’s security officers, their ships, and port facilities that they call.
  It also includes requirements that government shipping companies and port officials need to adhere to.
  Additionally, several security issues are included. Such security issues are those that require to be factored in when preparing security plans for ships as well as port facilities.

• Part B – ISPS Code part B guidelines are not mandatory. Nevertheless, several countries have made it compulsory in their respective national security regulations. Part B provisions guide the preparation and implementation of the above security plans. In short, it explains how the requirements can be met.

How Is ISPS Code Implemented In A Port Facility?

ISPS Code was implemented via chapter X1I-2 particular measure to improve the maritime security for the Safety of Life at Sea (SOLAS).

In a port facility, the ISPS Code is implemented in the following ways;

Assessing The Ship’s Security

The main goal is to identify an impending threat to the company’s assets and develop measures to avert security incidents.

Tactical Planning

Prepare the development of the security plans for the company and ships and achieve its implementation.

Security Policy

Inform all employees about the security measures being implemented so that they are aware of how they are directly concerned by the implementation.

Security Responsibilities And Authority

Ensure that every person managing the security plan knows what’s expected of them.

The managing team comprises the ship security officer, Master in relation with the security officer of the port facility, and the one for the company.

Security Project Team

The main goal is to develop security plans and provide adequate measures to be taken under the project.

The aim is also to withstand any problems that could inhibit the success of the project.

Company Security Program

Should explain how the company’s security measures will be handled to protect the company’s personnel and assets.

Ship Security Plans

It explains how the security measures will protect and the ship despite the ship’s location.

Approval Of The Ship’s Security Plans

Its main goal is to ensure its security plan. Adheres to the set requirements by the contracting government as well as the ISPS Code

Training And Drills

The main objective is to develop ways to prevent potential threats from affecting seafaring personnel regarding port security and during sailing.

Final Assessment

The final assessment is done to ensure that the security plan is implemented.

It will be effective in enabling the company to meet the ISPS Code requirements and acquire its certification.

What Are ISPS Charges? And Who Pays For It?

It is fees that are billed by the shipping line to cover the security and safety of the ship, cargo, and staff.

The charges cover the planning and workforce and the equipment used to implement the ISPS Code.

The fee is billed to the customer by the shipping line, and it’s typically included in the freight quote. It is paid along with the freight.

What Is The Difference Between ISPS Code And ISM (International Safety Management)?

The difference between ISPS Code and ISM lies in their objectives.

ISM is aimed at ensuring the safety of the crew by averting human injuries and deaths.

By ensuring there’s no damage to the environment and property as well as safety at sea.

On the other hand, ISPS Code explicitly ensures the safety of port facilities and ships.

What Is ISPS Certificate?

An ISP’s certificate is a document that verifies your adherence to statutory security regulations contained in. The ISPS Code but also the Port Security Act and the European Regulation 724/2004.

What Is The Duration Of An International Ship Security Certificate?

The Certificate remains valid for five years as long as you perform at least one intermediate verification in the validity period.

What Happens To Ships And Ports That Are Not Compliant With The ISPS Code Requirements?

To begin with, if the ship doesn’t adhere to the requirements, it shouldn’t be granted the International Ship Security Certificates.

As these are security matters, every measure has to be upheld, and if not.

The respective contracting governments are required to cancel operations of ships and ports that are non-compliant.

The ships to be canceled also include those that have not met the stated guidelines per chapter XI-2.

As well as the International Ship and Port Security Code and are yet to be certified.

Any ship that’s required to adhere to requirements of ISPS Code and chapter XI-2 should also follow.

The compliance and control measures in another different port.

Who Are The Key Players In International Ship And Port Security Code?

The key players in ISPS Code are the ones to ensure that the safety measures are implemented on vessels and port facilities.

Below are the three key players in the ISPS Code;

• Company Security Officer (CSO) – Ensures a proper assessment of the ship’s security. Additionally, the security officer is in charge of developing the ship security plan, handing it over for approval, and implementing it.
• Port Facility Security Officer (PFSO) – Not only does he implement but also develops and maintains the security plan of the port amenity. The CSO and SSO work closely together with the PFSO.
• Ship Security Officer (SSO) – As the name implies, a ship security officer ensures that the ship is secure and implements the ship security plan. Additionally, he contacts the PFSO and CSO when need be.

What Is Declaration Of Security About Ship And Port Security?

A declaration typically involves more than one party.

Therefore, in our case a declaration of security is stating matters concerning security between two parties.

These two parties can either be a shipowner, and the other party can be a port or a different ship.

DoS is not used as often but only during high-risk situations when the port facility and ship urgently agree on a solution regarding the measures to be executed.

DoS needs to be filled under three circumstances, namely;

• When the ship is being managed at a high-security level as compared to its calling port.
• When a ship is calling a port that lacks a port facility security plan
• When a ship is working at a high-security level compared to other ships, it is operating with.
• When a ship is working with a ship lacking an approved ship security plan,
• There has been a security threat to the ship or port facility.

What Are The Challenging Areas In ISPS Code Implementation?

Since its adoption in the year 2004, some questions concerning the ISPS Code have arisen. The relationship between the ISM and ISPS Code can be problematic regarding whether or not to consider safety or security.

A ship can be secured but unsafe, and this can result in the loss of the ship.

Also, lack of security might result in losses caused by piracy and other similar acts.

Another challenge might be the lack of an official monitoring process on the security problems since no audits are carried out.

In addition to that, a Ship Security Plan always includes confidential data.

This might affect the efficiency in making amendments and make it difficult to maintain or revise a Ship Security plan.

What Are The Advantages And Disadvantages Of the ISPS Code?

Some of the advantages of ISPS include the following;

• Ensures improved control of the flow of cargo, personal access.
• Provides a safe working environment for seafarers and port staff, thus creating favorable working conditions.
• Better documentation process owing to the standardized procedures globally.
• ISPS Code enhances the ship’s security and safety, thereby minimizing risks.

Aside from the advantages, ISPS Code also has some drawbacks which are not limited to;

• Owing to the extra security-related tasks introduced to the work routine, the seafarers have additional work.
• More paperwork as well as certification requirements,
• Once the security level increases, the work progress becomes slower.
• Increase in expenditures caused by shooting up of the ship’s operating costs for ISP’s implementation. This rising cost doesn’t exclude port costs since higher security levels result in a more extended port stay.
• Extra administration work.

What are the challenges of the ISPS Code?

Regulations come with their challenges, and this doesn’t exclude the ISPS Code. Below are some of the challenges of the ISPS Code;

• Some ports restrict cargo handling at security level 3 not unless there is a depreciation of the level.
• Implementing the International Ship and Port Facility Security Code becomes challenging since not every crew is trained for ship security.
• The rise of security level results in slow cargo operations, which affect port activities.
• In addition to that, the implementation process is an added task that consumes a lot of time.
• The crew’s daily activities are affected as it comes with extra security watch duties for them to handle.

What Are The Implications Of The ISPS Code Awareness?

ISPS Code has indirect impacts on ports. The impacts are categorized according to how they affect the;

• Efficiency
• Service price
• Customer satisfaction
• Manning
• Checking process
• Administration cost
• Damage occurring
• Lead time
• Competitiveness
• Effectiveness
• Profit
• Service level
• Documentation

It’s worth noting that the ISPS Code has both positive and negative implications on port facilities and ships.

For instance, the ISPS Code generalizes the impacts. This might hinder the proper scope of research as it will be based on the combined parts of the port rather than addressing the impact on each service.

The general aspects are researched by analyzing the factors mentioned above.

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This guide covers all information you’re looking for about Aluminum Window Profiles.

So, before importing Aluminum Window Profiles from China, read this guide.

Is There Difference Between Aluminum Window Extrusion And Aluminum Window Profiles?

Yes, there is a difference between aluminum window extrusion and Aluminum Window Profiles.

One of the most notable differences is in the manufacturing mode.

You will use the extrusion manufacturing method to produce or fabricate the aluminum window extrusion.

On the other hand, you can either use extrusion method or any other manufacturing method to manufacture Aluminum Window Profiles.

Other than that, you can use both Aluminum Window Profiles and aluminum window extrusion to make windows on different applications.

What Are Thermal Break Aluminum Window Profiles?

Thermal break Aluminum Window Profiles are special type of Aluminum Window Profiles with thermal break technology.

In other words, this type of Aluminum Window Profiles has a reinforcement of polyamide bar between inner and outer bar.

It will create an insulated barrier within the window frame thus slowing down conduction of heat, noise, and cold.

What Are The Advantages Of Thermal Break Aluminum Window Profiles?

There are numerous benefits that you will realize when using the thermal break aluminum window.

Here are some of the benefits of using the thermal break Aluminum Window Profiles.

Reduce Conduction Of Heat

Thermal break Aluminum Window Profiles have the ability to slow down conduction of heat 1000 times over.

Implying that, you will have a better experience with thermal break Aluminum Window Profiles in comparison to other profiles.

Prevent Frost And Moisture Condensation

It consists of a three-way sealing structure that separates water vapor cavity and achieve pressure balance of water and air.

This system improves water and air tightness thus achieving a clean and bright effect on the thermal break Aluminum Window Profiles.

Saves Energy

During the winter season, you can save a lot of heating energy as it reduces heat loss by a third.

In summer season, the insulation strips are heated thus reducing loss of energy more through air conditioning.

Environmentally Friendly

Through the application of the heat insulation systems, you can reduce consumption of energy and environmental radiation.

It will reduce heat conditioning which eventually reduce environmental radiation and heating thus conserving the environment.

Proper For Human Health

It is capable of creating a very comfortable environment for human habitation by regulating interior and exterior temperatures.

You will enjoy your time indoors as the window profile balances the body heat and the environmental heat.

Reduces Noise

It has the capability of reducing resonance effect of the sound waves thus maintaining a quiet environment.

Apart from that, it is capable of preventing transmission of sound thus reducing noise by up to 30 DB.

Very Attractive

It comes in a wide array of colors thus making it highly attractive which is a product of proper aluminum anodizing.

You have the freedom of combining more than one color thus increasing the beauty of the window profile.

Which Is The Best Alloy For Aluminum Window Profiles?

Choosing a suitable aluminum alloy for your window profile will depending on your unique requirements and specifications.

Of course there are many aluminum alloys.

However, for Aluminum Window Profiles, we recommend 6063 aluminum alloy.

It is strong, durable, and reliable.

Besides, it has good corrosion resistance and weldability.

Which Factors Should You Consider When Selecting Best Alloy For Aluminum Window Profiles?

When making the Aluminum Window Profiles, you should consider using the best types of materials.

To make the best choice, you should know the properties that you would like on the window profile.

Here are some of the properties of the Aluminum Window Profiles to help you make the right choice.

Strength

You must know the kind of strength that you would like to have on your Aluminum Window Profiles.

Implying that, different alloys have different strengths prompting you to make the most informed choice.

Surface Finish

You should also note that there are numerous types of surface finishes that you can have on the Aluminum Window Profiles.

On that note, these surface finishes match different aluminum alloys which forces you to make the best choice.

Suitability For Decorative Anodizing

You should also consider an aluminum alloy that is highly suitable for anodizing for the purpose of decoration

Corrosion Resistance

In addition to that, you will increase the durability of the Aluminum Window Profiles by using corrosion resistant aluminum alloys.

Machinability

You must also choose an alloy that will give you easy time when it comes to fabrication to make the window profile.

Weldability

Fabrication of the Aluminum Window Profiles also forces you to choose the most suitable alloy that you can join by welding.

Production Economics Or Price

You must also work within a particular budget which you can comfortably afford to avoid straining the production economics.

Does The Type Of Aluminum Alloy Affect The Production Process Of Aluminum Window Profiles?

Absolutely, the type of aluminum alloy affects the production process of Aluminum Window Profiles.

Aluminum has different indices that that determine the quality of assessment suitable for producing Aluminum Window Profiles.

Since there are different types of aluminum, you should expect them to have different characteristics.

With that in mind, you will note that the aluminum alloys affect the production process of Aluminum Window Profiles.

What Are The Processes Involved In The Manufacturing Of Aluminum Window Profiles?

There are four main processes that you will have to follow during the manufacturing of Aluminum Window Profiles.

Here is the main procedure involved in making of the Aluminum Window Profiles.

1)      Ingot Casting

This is the first step that you will undertake in the process of manufacturing the Aluminum Window Profiles.

Here, you will prepare the ingredients that you need for the manufacturing process of the Aluminum Window Profiles.

Apart from that, you will melt the ingredients and then proceed with casting before homogenizing.

This is the stage where you will determine the chemical composition as well as dimensions of the ingot.

2)      Extrusion Process

This is the main process of making the Aluminum Window Profiles.

At this point, you will go through particular processes such as ingot heating then followed by extrusion.

After that, you will cool the extruded die before straightening it under tension.

As soon as it is straight enough and cool enough, you will cut it into different pieces according to dimension specifications.

When heating the ingot, you should control the temperatures between 400 to 520 degrees centigrade.

Apart from that, you will use a hydraulic press with 800 to 2500 tonnes of pressure.

3)      Heat Treatment

Here, you will heat the aluminum alloy in order to quench and age to get the best mechanical properties.

You can proceed with the heat treatment process after molding to make sure it is in the right form.

4)      Surface Treatment

Finally, you will treat the surface of the aluminum extrusion profile through anodizing.

There are other surface treatments you can opt for even though anodizing gives the best colors.

Which Are The Different Styles Of Aluminum Widow Made Using Aluminum Widow Profiles?

When it comes to styling, you have the freedom of choosing the most suitable window to suit your needs.

Implying that there are quite a number of styles that you can have for your Aluminum Window Profiles.

Here are the main Aluminum Window Profiles styles that you can choose from.

• Casement Windows
• Sliding Windows
• Stacking Windows
• Fixed Pane Windows

Does The Temper Of Aluminum Window Profiles Impact The Product Quality?

Yes, the temper of Aluminum Window Profiles has an impact on the product quality.

In other words, when choosing the most suitable quality of Aluminum Window Profiles, temper plays a huge role.

These are the different variations that you can achieve from the extrusion of different aluminum alloys for Aluminum Window Profiles.

There are five different types of temper profiles that you have to pay close attention to.

F Temper As Fabricated

These are semi-finished products that you can use in shaping, finishing, and other thermal process to achieve other tempers.

O – Temper Or Annealed

You will use this form of temper to achieve the lowest strength condition of the Aluminum Window Profiles.

H – Temper Or Strained Hardened

You will use this type of temper on non-heat treatment alloys whose strength increases from hardening.

W – Temper Solution Heat-Treated

You will use this type of temper on alloys which age spontaneously or naturally after heat treating.

T – Temper Or Thermally Treated

You will use this on any product that has heat treatable alloys then followed by quenching and aging.

How Do You Measure The Strength Of Aluminum Window Profiles?

You can measure the strength of the Aluminum Window Profiles by examining the impact and tensile strength.

Apart from that, you will have to look at the hardness as well as the ductility of the Aluminum Window Profiles materials.

When it comes to measuring ductility, you will use percentage elongation and percentage reduction tests.

What Are The Applicable Surface Finishes For Aluminum Window Profiles?

Well, there are different types of surface finishes that you can have on the Aluminum Window Profiles.

The surface finish will improve the beauty of the Aluminum Window Profiles and increase corrosion resistance.

Here are the main surface finishes that you can have for the Aluminum Window Profiles.

Anodizing Surface Finish

You can opt for anodizing which involves adding a surface on top of the natural oxide film.

It is an electromechanical process that increases the durability and adds more colors to any type of aluminum alloy.

Power Paint Surface Finish

You can use this process which will leave behind a film that will meet the intense performance criteria.

It involves applying solid powder which will fuse with the aluminum alloy to form the coating.

Liquid Paint Surface Finish

You can apply different colors on the Aluminum Window Profiles with uniform thickness.

It comes complete with VOCs which you can remove through the baking process.

Why Is Tolerance Of Aluminum Window Profiles Important?

It is very important to have a look at the tolerance of the Aluminum Window Profiles.

Here are the reasons why you should look at the tolerance of the Aluminum Window Profiles.

• Helps in meeting the functional requirements that you desire
• It will also help in the determination of the maximum permissible die wear
• Enhance the ability to produce the most suitable shape for the aluminum extrusion
• In addition to that, it helps in the establishment of necessary press technical conditions like cooling and run out-side.

Are Your Aluminum Window Profiles Lead-Free?

Yes, our aluminum windows profiles are lead free.

Implying that, they are safe not only for you to use but also for the environment.

Apart from that, our aluminum alloys are machinable even without having lead material as a constituent part.

In addition to that, we comply to the RoHS quality requirements which requires exclusion of lead from aluminum alloys.

What Factors Affect The Bending Of Aluminum Window Profiles?

There are different points which can help you identify the most suitable aluminum alloy for bending.

There are particular factors which help in the identification of the aluminum for proper bending.

Here are the main factors affecting the bending of Aluminum Window Profiles.

Formability

You should have an aluminum alloy with lower strength ratio to a higher elongation ratio.

In this case, as strength increases, the elongation decreases and if the other decreases another increases.

Bend Radius And Thickness

Since aluminum becomes harder as you bend, you must take into consideration the radius and thickness.

Elongation Percentage

In this case, you will look at elongation in relation to the difference between yield strength and ultimate strength.

Do You Manufacture Custom Sizes Of Aluminum Window Profiles?

Yes, we do manufacture custom sizes of the Aluminum Window Profiles.

You should provide us with the different sizes or dimensions that you need.

Apart from that, you must also specify the type of aluminum alloy you would like to use.

What Are The Parameters To Check During Quality Assessment Of Aluminum Window Profiles?

During the assessment of the quality of aluminum, there are particular factors that you have to consider.

Here are the main determinants for the right quality of the aluminum materials.

Thickness

Here, you can either choose between the 70 series or 90 series which will determine the type of window profile.

Apart from that, you can also use the 55 series or the 60 series to make the Aluminum Window Profiles.

Tensile Strength

When looking at the tensile strength, you must make sure that it is equal to or greater than 157 N/mm².

Apart from that, you must also pay attention to the yield strength that should be equal to or greater than 108 N/mm².

Color Scale

You must also go for an aluminum alloy that has a proper color scale with obvious chromatic aberrations.

In many cases, you have to confirm that the colors between the two ends of an aluminum is consistent.

Flatness

You have to make sure that there is no bulging or dents on the surface of the aluminum alloy of choice.

Glossiness

In case you spot ash and bubbles on the surface of aluminum alloys, you have to avoid that kind of material.

Degree Of Anodizing

You must also note that the alloy allows a degree of anodized material greater or equal to 10 micrometers.

You can confirm this by scratching the surface just to confirm that the film is erasable.

What Is The Lifespan of Aluminum Window Profiles?

After installing your Aluminum Window Profiles, you should rest easy knowing that they are durable.

Implying that, Aluminum Window Profiles have very high durability spanning to about 45 years.

You should, however, have the best form of maintenance to ensure it reaches the maximum service life.

How Do You Color Aluminum Window Profiles?

Well, you can color the Aluminum Window Profiles after the surface finish to suit any color combination.

Depending on the type of aluminum alloy, you can simply anodize aluminum to provide the most suitable color.

Which Are The New Trends In Aluminum Window Profiles Manufacturing?

As time goes by, you should expect to have better technology and trends on the Aluminum Window Profiles.

The most recent trends that you should expect to have on the Aluminum Window Profiles are.

Multi-tone Surface Treatments

At the moment anodizing does not meet the ever-increasing decorations on the exterior of different buildings.

It is the reason why you should adopt the multi-tone surface treatment on the Aluminum Window Profiles to match decoration specifications.

Electrostatic Powder Spraying

This form of spraying has a better effect on the Aluminum Window Profiles than anodizing.

It makes the Aluminum Window Profiles more resistant to corrosion, slat spray and alkali.

Electrophoretic Coating

You can also opt for electrophoretic coating which makes the exterior of the Aluminum Window Profiles soft and resistant to corrosion.

Which Are The Relevant Industry Standards That Aluminum Window Profiles Should Comply With?

You must also make quality of the Aluminum Window Profiles a priority by adhering to industry standards.

Here are the main industry standards for Aluminum Window Profiles that you should comply with.

• ISO Quality Standards
• cGMP Quality Standards
• BS Quality Standards such as BS 7950 and BS 8213
• PAS Quality Standards such as PAS23 and PAS24

What Is Aluminum Window Profiles Price?

The price of the Aluminum Window Profiles varies depending on a number of factors.

Here are the main factors that affect the cost you will pay for the Aluminum Window Profiles.

Type Of Materials

You have to understand that different types of Aluminum Window Profiles use different types of aluminum alloys.

In addition to that, you should also understand that the different types of alloys come with different price tags.

Size Of Aluminum Window Profiles

In this case, the bigger the size of the Aluminum Window Profiles, the higher the cost you will pay.

Type Of Aluminum Window Profiles

You should also note that there are different types of Aluminum Window Profiles that you can opt for.

For instance, you will pay more for Aluminum Window Profiles with thermal break properties than one without thermal break properties.

Is There Minimum Order Requirement For Your Aluminum Window Profiles?

Yes, there is a minimum order quantity requirement that you need to adhere to.

The minimum order quantity requirement will vary depending on the manufacturer.

You should also note that you can order more Aluminum Window Profiles above the minimum order quantity requirement.

Do You Have Standard Sizes for Aluminum Window Profiles?

Yes, there is a standard size for the Aluminum Window Profiles.

You can opt for the standard size which is usually high-profile cross-section size.

In this dimension, you can have the 40, 45, 50, 55, 60, 65, 70, 80, 90 and 100mm series.

Apart from that, you can also come up with unique dimensions that will fit your application requirements.

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If you have any question about Jones Act, you will find the answer right here.

So, keep reading to learn more.

What Is The Jones Act?

 It is an act created by the United States federal government to control and manage maritime commerce.

The Jones act is the one that provides the rules of trade and also determines which vessels can engage in that trade lawfully.

The Jones act requires that American citizens’ shipping between U.S. ports is done on ships constructed, owned, and ran.

What Is The History Of The Jones Act?

The Jones Act was introduced to the Senate by Senator Wesley R Jones from Washington State. On June 4, 1920, it was approved by the House and Senate.

On June 5, 1920, then-president Woodrow Wilson enacted it into law.

Since then, the Jones act has been through many amendments and revisions. The latest revision was in the year 2006, which involved remodifying the United States Code.

Why Was The Jones Act Created?

The main reason for creating the Jones Act was to ensure that the United States maritime industry remains safe, active, and dynamic.

This act came as a reaction to World War 1 where the German navy destroyed the United States fleet.

The Jones Act seeks to provide the U.S. with reliable maritime resources ready for shipping goods between the country’s ports.

Help grow the marine industry and ensure national security in times of war.

The Jones Act is vital in national security and defense and for the continued prosperity of America’s maritime trade.

Why Is The Jones Act Important?

Some of the important benefits of the Jones Act are:

• The Jones act guarantees American citizens of reliable water transport at all times.
• Vessels engaging in trade are American-built, owned, and operated; safety standards are assured.
• The jones act ensures that American mariners remain employed and trained as one of its requirements. These jobs include ship crews, construction and maintenance of vessels, and other management jobs.
• In times of war and emergencies, the jones act ensures that the U.S. has sufficient merchant mariners and vessels to aid in military operations.
• The jones act subject’s revenue generated by domestic carriers to taxes while those owned by foreigners are not.

How Does The Jones Act Advance U.S. National Security?

The Jones act plays a critical role in advancing national security, especially in times of war or national emergencies.

It helps ensure that America maintains its political power, economic strength, and national security in the maritime industry.

With the Jones Act in place, America has reliable access to vessels and workforce at any given time.

The Jones Act vessels act as a naval auxiliary in times of war and national emergencies.

The Jones Act restrictions on vessels allowed in U.S. ports further advance National Security as they oversee. Hence they are indeed up to the set American rules and regulations.

What Are The Underlying Goals Of The Jones Act?

The underlying goals of the Jones Act are as follows:

• Ensure the growth and development of national maritime vessels and support national defense- in times of war or national emergencies.

American ships readily provide the resources and workforce to help military operations.

During World War 1, before the Jones Act was enacted, the U.S. government was struggling with shipbuilding to support the war.

It was one of the underlying issues that brought up the Jones Act to be.

• Build up the United States maritime trade and set off economic growth. The Jones Act provides about 650,000 Americans with employment and generates approximately $150 billion annually in monetary value.

Which Industries Are Supported By The Jones Act?

The Jones Act supports a variety of industries, for instance:

• Crude oil and petroleum
• Iron core, coal limestone
• Farm and food products
• Chemical and allied products
• Steel and other construction materials
• Shipbuilding industries

How Did The Jones Act Come About?

During a meeting in 1789, Congress’s initial proposition was to encourage American vessels for shipping through discriminatory tariffs and taxes.

However, at that time, U.S. sailors and shipbuilders were among the best in the world regarding cost and quality.

It is argued that the U.S. ships were so competitive that encouraging their use was cost-free.

Congress had to think beyond low cost and think matters national security. In times of war, such vessels would be used as a naval auxiliary.

There had to be laws to ensure their availability in service to the national interest.

By the mid-1800s, the U.S. shipping laws had become even more restrictive. This, in turn, made shipping less competitive and difficult.

In 1919, Senator Wesley Jones from Wesley State. The chairman of the Senate Commerce Committee commenced a series of hearings on the United States maritime industry.

In early 1920, a proposal was made to govern domestic water transport eliminating less expensive means of transportation to Alaska.

This proposal and language are what formed the basis of the Jones Act. On June 5, 1920, the proposals were folded into the 1920 Merchant Marine Act as section 27, otherwise known as the Jones Act.

The Jones Act was passed by the Senate and signed into law by the president.

Why Was The Jones Act Created?

The jones act was created mainly to revive the American maritime industry, which had been badly affected by World War 1.

When creating this act, Congress intended to ensure that national defense and security were provided for.

The jones act was to ensure the proper and continued growth of both foreign and domestic maritime commerce.

It was also to ensure that the United States have suitable and sufficient vessels. To serve or offer back up to military operation in times of war or national defense.

Where Does The Jones Act Apply?

The jones act applies to territories like Hawaii, Puerto Rico, Alaska, and all other ports in the U.S. mainland.

The Jones Act, Hawaii

What Are The Requirements For Vessels Carrying Goods Between U.S. Ports?

The main requirements for vessels shipping goods between U.S. Ports are as follow:

• Vessels must belong to United States citizens or be controlled by U.S. citizens with 75% ownership.
• They must have been constructed or assembled on American soil.
• Vessels should have their registration done in the U.S.
• At least 75% of the maritime crew should consist of American citizens.
• They must be US-flagged.

Vessels shipping goods between Us ports are expected to fulfill these requirements before legally participating in the trade or other maritime activities.

The Jones Act excludes territories like Guam and requires that vessels be at least possessed and operated by U.S. citizens. But not necessarily built or rebuilt in the United States.

How Does The Jones Act Restrict Vessels Entering Puerto Rico?

Any vessels can get into Puerto Rico under the Jones Act. However, it requires that shipping between two U.S. ports be done by ships constructed and operated by American citizens.

The jones act further restricts vessels going into Puerto Rico by ensuring shipping from the island to the U.S. mainland.

It is done using expensive and protected ships instead of just regular ones.

Based on data collected by a financial consulting firm John Dunham and Associate.

The difference between the cost of a U.S. vessel and a foreign vessel is 62% and 57%.

According to the report, Puerto Rico’s lost economic value is approximately $1.2 billion.

This makes products shipped from the U.S. mainland expensive and thus raising Puerto Rico’s overall cost of living.

What Is The Jones Act Specifications On Seamen’s Rights?

The jones act indicates that sailors and seamen can make claims and should be paid for damages or injuries obtained at work.

The jones act requires employers to compensate seamen for injuries suffered from the negligence of the ship’s owner. Any other action by the captain or crew members is also considered.

The Jones Act further specifies that any worker who spends less than 30% of their working on a vessel is not considered a seaman.

Therefore, they cannot file a lawsuit for damages.

A person who spends over 30% time serving on a vessel is a seaman and sue their employer for claims.

Suppose a seaman is injured in the line of duty. They have up to three years to file a lawsuit from the time of the injury.

If a seaman does not file the lawsuit within that specified time, the court may dismiss the claims.

Can The Jones Act Be Waived?

The jones act can be waived temporarily if the Secretary of Defense makes a request. If it’s a national security case or if there is a national emergency.

Historically, the Jones Act has been waivered several times in the wake of natural disasters like hurricanes.

The Department of Homeland Security is the body that is in charge of reviewing Jones Act waivers.

In the past, the Jones Act has been waivered in times of natural disasters like hurricanes and other national security instances.

Some instances where the Jones Act have been waivered are:

• In 2005, Michael Chertoff, the secretary of Homeland Security. Temporarily waived the Jones Act ships transporting natural gas and oil from 1^st to September 9 that year. It was in the wake of Hurricane Katrina.
• In 2012, when Hurricane Sandy hit and gave rise to fuel shortages. A temporary waiver of the Jones Act was issued to help curb these shortages.
• On 2017 September 8, a temporary Jones Act was issued due to Hurricanes Irma and Harvey. The waiver was to help deal with the effects of these hurricanes.
• In 2017, President Trump gave a temporary Jones Act waiver to Puerto Rico after Hurricane Maria hit them.

Why Was The Jones Act Waived For Hurricane Harvey And Irma, And Did It Help?

Hurricane Harvey heavily affected the Texas Gulf Coast’s oil supply system. Texas being the main distribution hub for petroleum products in the U.S., Hurricane Harvey led to a fuel supply shortage.

As a result, a temporal waiver was issued by Trump that allowed foreign ships to transport fuel-related products.

The release was to help cover the shortages and gaps that were brought about by the hurricane.

It is reported that approximately eight vessels took advantage of the waiver for both Harvey and Irma hurricanes. It is safe to say that the waiver did provide relief to the damage caused by the hurricanes.

What Are The Two Types Of Jones Act Waiver Requests?

The two types of Jones act waiver requests process are; one for the secretary of defense and the other for non-defense entities.

However, it is essential to note that the Secretary of Homeland security is the final. The maritime officials do not have the authority to issue Jones Act Waivers.

Secretary of Defense – Secretary of defense has been given authority under the constitution to make the Jones Act waivers in national security and protection matters.

Non-defense entities – Department of homeland security must evaluate if the waiver request is in the interest of national defense to go ahead with it.

If there is enough interest in national defense, the secretary of homeland security makes the final decision on the waiver of the Jones Act.

Does The Jones Act Apply To Airlines?

The Jones act may apply to airlines. However, many United States courts have proved it difficult to determine which cases it applies to and which it does not.

What Are The Concerns Of The Jones Act?

There has been criticism about the shipping cost implications brought about by the Jones Act.

However, their labor cost can explain the difference between the U.S. and other foreign shipping costs. Taxation systems are working conditions and other factors.

Generally, American citizens have access to higher working and living conditions.

Companies and workers in the U.S. have to meet set national safety and compensation regulations.

American employees, suppliers, and vendors have to pay American taxes strictly.

These extra costs impact shipping costs put Americans at a disadvantage with their foreign counterparts.

Who does not require to spend all that?

Suppose the Jones Act was recalled, the U.S. would experience a significant loss in maritime jobs.

It would be such a huge blow to the economy as thousands of jobs would be lost.

Shipyards would stop production, making the shipping industry collapse.

The U.S. government has to oversee that the Jones Act fleet is intact. And is not threatened by foreign competition to continue benefitting from the economic benefits it yields.

What Is The Economic Impact Of The Jones Act?

The Jones Act helps boost various sectors of the U.S. economy. It dictates that vessels be built or rebuilt in the U.S. shipyards.

Shipowners need to take their vessels for regular inspection, maintenance, and monitoring.

The Jones act contributes to the American economy beyond ship-related operations. For instance, shipbuilders buy materials for construction from domestic companies, thus impacting the economy positively.

These shipbuilding activities offer employment to Americans who spend their wages, generating more income for the economy.

Other economic cost implications associated with the Jones Act include:

• Transportation costs for vessels under the Jones Act are double those of ships not subject to the Jones Act.
• One of the requirements of the Jones Act is an all or higher percentage American crew. It makes costs of operating ships is subject to the Jones act 2.7 times higher.
• The prices of ships constructed in the United States are two to four times higher than the average vessel built elsewhere.

How Does The Jones Act Influence Higher Shipping Rates?

As a result of the specifications and restrictions of the Jones Act, the U.S. endures overall high shipping costs.

Transport of goods between U.S. ports is off-limits to foreign vessels. Therefore, domestic shippers incur very high shipping rates for the vessels they use.

Demand for shipping services goes down when the shipping rates go up.

This, in turn, causes reduced demand for purchasing vessels by shipping companies and reduced employment opportunities for merchant mariners.

Who Is Responsible For The Jones Act Enforcement?

It is the responsibility of the Department of Homeland Security and U.S. Customs and Border Protection to oversee the enforcement and implementation of the Jones Act.

These two bodies have the authority to impose penalties and fines on violators of the Jones Act.

The department of Homeland Security is also in charge of issuing waivers for the Jones Act.

If you witness a Jones Act violation, you are encouraged to report it to the following address:

The Jones Act Division of Enforcement

U.S. Customs and Border Protection

Office-(504)670-2074

jonesact@cbp.dhs.gov

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Let’s look at yet another important freight term – known shipper.

If you have any question about known shipper, you will find the answer right here.

So keep reading to learn more.

What Is A Known Shipper?

The Transport Security Administration (TSA) requires any shipper to transport cargo on passenger aircraft from the U.S. To be included in the database that lists known shippers.

This database contains names of any shipper legally allowed to export cargo from the U.S. via a passenger aircraft.

Thus, explaining what we mean by a known shipper. To expound further, here is a brief explanation.

A known shipper management system is a program established by the Transport Security Administration (TSA). To make use of the extra space left after loading cargo in passenger aircraft.

To make this move efficient & effective. The Transport Security Administration had to come up with proper standards.

To help the cargo in a bid to ensure the safety of the passengers and cargo in the aircraft.

That said. A known shipper refers to a person who has permission to ship goods in a passenger air carrier from the U.S.

Who Administers The Known Shipper Program?

The Federal Aviation Administration first initiated the Known shipper program due to the 9/11 tragic events.

Afterwards, TSA took over in the program’s administration, whose purpose is to ensure air cargo security.

TSA is responsible for evaluating and selecting qualified shippers for the known shipper status in the U.S., Thus enabling them to have privileges when shipping cargo through air.

What Is The Difference Between a Known Shipper And An Unknown Shipper?

A known shipper is a person that has been listed in the known shipper database by the Transport Security Administration.

The TSA ensures that they evaluate and select individuals to be listed in the known shipper database based on factors such as;

• Their previous customs history -Having a customs history places you in a better position to be approved for the known status.
• Shipment history – Same as the customs history, a shipment history will back up your application and increase your chances of being approved.
• Contracts
• Dun and Bradstreet vetting

Known shippers get to enjoy a wide variety of benefits—one of the main ones being the ability to transport their cargo via passenger and cargo aircraft.

On the other hand, an unknown shipper is not included in the known shipper database. Meaning, they only have one option for shipping their cargo, which is via cargo aircraft.

In addition to that, an unknown shipper must name their cargo and supporting documents. “UNKNOWN SHIPPER, CARGO AIRCRAFT ONLY” when shipping their cargo.

It is just one of the many advantages of being a known shipper that we shall look at later in this guide.

Why Was The Known Shipper Program Established?

After the occurrence of the catastrophic incident of 9/11, the known shipper program was established. To ensure the security of the cargo and passengers.

Aside from this, another purpose for establishing it was to use the available space left in the passenger aircraft.

It was realized that once passengers’ luggage was loaded, there was a huge amount of space left. Therefore, using space to ship cargo became a brilliant idea.

TSA had to evaluate each individual and assess whether they meet the requirements for being included in the database for known shippers.

Additionally, the TSA saw that every standard was adhered to be successfully and safely executed.

Is It Cheaper To Ship Under Known Shipper Status?

Shipping under known shipper status is quite beneficial in several aspects: cheap cargo shipping.

As we all know, airfreight is the most expensive means of transport that you can use to ship cargo.

You must know that shipping your cargo via a cargo aircraft becomes expensive compared to shipping via passenger aircraft.

That said, it’s easy to see why known shipper status is beneficial.

You will get to enjoy faster shipping and more flexibility, but also the availability of diverse options and reasonable rates.

What Are Some Other Benefits Of Being A Known Shipper?

A known shipper has several advantages that unknown shippers lack. Such benefits include;

• Timely delivery – You are bound to experience faster delivery if you are a known shipper, and here is why.

Globally, there are more passenger planes as opposed to cargo aircraft. What’s more, the passenger aircraft take more trips as compared to cargo planes. Thus they can ship and transport several people and goods.

In addition to that, most if not all-cargo aircraft use fewer routes to travel, therefore slowing down your shipping process.

That said, having the opportunity to use passenger planes to ship your cargo dramatically benefits you and your business.

• Additional options –Known shippers have the opportunity to ship cargo on both passengers and cargo ships and enjoy faster transit times.
• Cheaper rates and costs – Passenger aircraft are funded by the shippers and passengers, minimizing overall costs.

In addition to that, known shippers have two shipping options which place them in a better position. In case of unnecessary rate fluctuations by cargo planes.

• Less hassle – As an unknown shipper, you should be ready to pass through several thorough checkups and screenings.

Known shippers are saved from such hassles by having their cargo X-rayed, just like passenger baggage.

• More flexibility – Being a known shipper is quite flexible as you have options if a client decides to adjust your shipping schedule.

The available options allow you to meet deadlines regardless of any adjustments made.

• Fewer delays and efficiency – A know shipper will experience fewer delays than unknown shippers due to regulatory reasons.

What Is A Known Shipper Number?

To ship cargo outside the U.S. via a passenger aircraft, you need to be a known shipper.

Every known shipper is assigned a number that helps identify them as a known shipper and is used in making bookings.

What Are The Requirements For Becoming A Known Shipper?

There are no solid requirements that TSA has publicized.

The reason behind this secrecy is abiding by the policy and ensuring safety for domestic and international travel.

It, in turn, facilitates adequate vetting of the shippers.

However, we can generalize TSA’s factors when individuals or companies apply to become known shippers.  They include;

• Secure Infrastructure
• Security threat assessment
• Background checks
• Access controls
• Security and awareness training
• Supervision at sites for air cargo as well as staff working in air cargo

Again, keep in mind that there is no detailed information about what’s strictly required by the TSA.

Your freight forwarder can offer you additional advice on what factors you should consider when applying to become a known shipper.

How Do I Apply For Known Shipper?

The process of becoming a known shipper can be complex or straightforward based on the amount of information you have.

IAC will require you to present as many documents as you can.

This including a history of your shipping records and enough documentation to prove the validity of your business.

Once you are done submitting the necessary documents and information.

TSA will go through your application and decide whether or not to approve it.

This might take from 24 hours to a few weeks before your approval status is communicated. The period taken to approve might differ based on factors such as;

• Length of Queue of other companies
• Missing information
• Any red flags are being raised during the process.

Keep in mind that if you resell goods, there are minimal chances of your application being approved.

The reason being re-sale goods are considered to have many risks.  That said if you are a manufacturer.

You have a higher probability of being approved as compared to an individual who resells goods.

In addition to that, having experience with airfreight shipping provides you with a good chance of being approved.

A freight forwarder can guide you in the application process by providing you with advice and answers to your questions.

Working with freight forwarders allows for a faster application process with TSA.

What Would I Need To Become A TSA Known Shipper?

Becoming a known shipper is not a walk in the park. There is a lot of information or documentation you will need to present.

TSA will examine your business to assess whether it meets the requirements for attaining the known shipper status.

Having knowledge and access to your shipping history and data records might be beneficial to the TSA professionals. It helps investigating your business will be of importance.

Being a manufacturer of goods with experience in airfreight is an added advantage when applying for this process compared to a goods reseller.

It’s because manufacturers can quickly provide valid information on the nature of their goods and prove their safety.

How Long Does It Take To Become A Known Shipper?

There are several steps to be taken when applying to become a known shipper.

Often, the length of time to become a known shipper will range from a week to several weeks. This will depend on how fast your documents are received.

How Much Does It Cost To Become A Known Shipper?

Becoming a known shipper involves several processes. The first one is filling and submitting a known shipper request form.

After that, the information that you provide will be verified via the TSA database. Any site inspection conducted will attract a fee of not less than $75 or more.

How Long Is A Known Shipper Status Valid For?

After your known shipper status is approved, it will be valid for one year. You will need to renew your Known status every year to retain the known shipper status.

In as much as acquiring a known status might be challenging. I cannot stress enough how beneficial a known shipper status is to your shipping processes.

More so in terms of flexibility and efficiency.

Do I Need To Be A TSA Known Shipper For U.S. Airfreight Imports?

No. It is not a must for you to be a TSA known shipper when importing to the U.S. via airfreight.

Only US registered businesses and residents are required to register with TSA. It’s done to ensure that the cargo being shipped is safe to aircraft staff and passengers in the planes.

What Are The Limitations To What I Can Ship As A Known Shipper?

It’s vital to understand that in as much as known shipper status is beneficial, it also has its downside.

To begin with, you are limited to the size of cargo you can ship via a passenger aircraft.

For instance, you cannot cargo vessels above 62H inches or longer than 125 Long inches.

Failure to observe this measurement will result in your cargo being prevented from being shipped in passenger aircraft.

Cargo aircraft are specifically designed to accommodate cargo, and therefore they allow diverse dimensions and weight of cargo to be shipped.

Let’s have a quick look at the Boeing 747 freighter.

It’s a maximum height of 300 centimetres for every piece of cargo, while the 747-passenger aircraft has a size of 160 centimeters.

From this example, it’s easy to conclude that you are not always guaranteed a known shipper.

Before deciding on the aircraft to use, ensure that you are aware of the dimensions of your cargo.

Are There Exceptions For Shipments Not Requiring Shippers To Be Known?

Yes, some shipments will not need you to have a known status. Such loads are not limited to;

• Shipment transported via cargo flights
• A live animal
• Shipments moving around Alaska
• A package that’s either 16 ounces or below.
• Medical shipments.

Does Being A Known Shipper Exempt Me From Cargo Screenings?

No. While there are several benefits of having a known status, exemption from cargo screenings isn’t one.

Just like other goods and passenger baggage being transported in the passenger aircraft, your cargo will need to be screened.

Together with the port customs.

The TSA will carefully examine your cargo and ensure that all the requirements are met, to ensure safety on the plane.

The screening of cargo happens before they are loaded in the passenger aircraft, thereby facilitating the efficiency of the operation.

What Should I Do If I Can’t Get The Known Shipper Status?

It is never guaranteed that you will be approved to get a known status. Therefore, in case you are not among the selected ones. You shouldn’t lose hope yet as there are several other alternative options you could take.

First, you need to remember that you still have the option of shipping via a cargo aircraft. Shipping your goods through a cargo aircraft will not require you to have the known shipper status.

Nevertheless, due to the downsizing of the commercial airline fleet in the U.S.

The number of domestic air freighters left is very minimal if they still exist.

It poses a challenge to the unknown shippers as they have fewer options to choose from.

Secondly, you can work with a freight forwarder and open an account with them. Your freight forwarder will help submit your business information to the DHS for them to review.

Upon submitting, the response as to whether you’ve been accepted or rejected will be communicated after a few minutes or so.

What Is The Difference Between Known Shipper And Known Consignor Status?

A known shipper and a known consignor are two different statuses that might sound to be similar.

A known shipper is entitled to ship their cargo via passenger flights and cargo flights approved by TSA.

On the other hand, a known consignor refers to an individual or company that ship’s cargo on their account.

A known consignor will be required to meet the required standards of security. As well as the regulations for the specific cargo they are shipping.

What Steps Should I Take To Become A Known Shipper For Business?

Typically, TSA already recognizes businesses as known.  For you to qualify for a known shipper status, your business needs to be TSA recognized.

Here are some steps to take to become a known shipper as a business.

• Submit your application electronically via your phone to your cargo operators. Who will then contact TSA to establish whether you are known under TSA.

Below are some of the information that might be required when submitting your application.

• Physical address
• Full name
• A valid email address
• Your phone number
• A mailing address (if applicable)
• Primary shipping station
• Suppose you are known under the TSA. You will be given a customer identification number, and you can commence shipping once your status reflects in the system.

On the other hand, if you happen to be an unknown shipper, your air cargo operator can appeal on your behalf.

This, however, might vary depending on different air cargo services. For instance, Alaska air cargo does appeal on behalf of their client’s business.

Nonetheless, after appealing, it might take several weeks to hear from the TSA. If your status is still not updated to known, you can discuss other options with your air cargo operator.

An IAC can Be A Known Shipper?

Whether it’s a foreign air carrier, IAC, adhering to security requirements must be applied qualify their clients to a known shipper status.

If you are a shipper wishing to ship your cargo via air transport, your transportation service provider can assist you in becoming a known shipper.

What Is The Purpose Of KSMS?

KSMS (Known Shipper Management System) is a program used to approve shippers to ship their cargo via passenger.

KSMS also ensures that both domestic, as well as international airline safety and security, are upheld.

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The choice of a China stainless steel valve manufacturer is an important decision for an enterprise. A good China stainless steel valve manufacturer means possessing the processing technology to manufacture high-quality products, having sufficient production capacity, and being able to provide competitive products while making profits.

Nowadays China Stainless Steel Valves are widely used in chemical, petrochemical, petroleum, papermaking, mining, electric power, liquefied gas, food, pharmaceuticals, water supply and drainage, municipal administration, mechanical equipment, electronic industry, urban construction and other fields.

With over 20 years of manufacturing experience, Jiangsu BCST Group Co., Ltd is a professional manufacturer of flowmeters, control valves, pressure transmitters, level gauges s, etc. BCST Group has Germany imported estimation system and long-time tracking estimation record. BCST’s products have CE, SIL2, RoHs, ATEX approval, and fast delivery time. There is a professional specialized support platoon and experienced technical team. Our products are widely applied in various industries, including water treatment, paper making, sugar mill, oil & gas, chemical and power industry,.etc.

The stainless steel valves used for fluid control, from simple shut-off valves to extremely complex valves used in automatic control systems, have a wide range of varieties and specifications.

The working pressure of them can be from 0.0013MPa to 1000MPa at high pressure and working temperature from a low temperature of -269°C to a high temperature of 1430°C.

However for overseas valve buyers who are thousands of miles away, choosing a reliable Chinese stainless steel valve manufacturer to cooperate & to import is not an easy thing.

China stainless steel valve manufacturer management is a key part of the supply chain management, its purpose is to establish a stable and reliable China stainless steel valve manufacturer management team.

Through the implementation of good supply chain strategy, the manufacturer of stainless steel valves China to establish good cooperation Relations, to provide end customers with high-quality and fast service guarantee.

A good China stainless steel valve manufacturer is a guarantee of high quality. An excellent China stainless steel valve manufacturer is an important asset of the organization and will be the organization that purchases its products or services. Bring good returns.

In China manufacturers of stainless steel valves management, select China stainless steel valve manufacturer is a very important job. The smooth supply of materials by China stainless steel valve manufacturers prevents production stops due to waiting for materials.

The stable quality of materials supplied by China stainless steel valve manufacturers will ensure the stable quality of finished products.

The accuracy of the delivery date of China stainless steel valve manufacturers will guarantee the accuracy of your delivery date. If you can cooperate well with quality China stainless steel valve manufacturers, the work of both the supply and demand sides will progress smoothly.

Therefore, the choice of China stainless steel valve manufacturers directly affects the production and sales of yours, and has a great impact.

Therefore, it is very important to choose an excellent China stainless steel valve manufacturer. Importing from a China stainless steel valve manufacturer is to ensure timely delivery on the premise that the China stainless steel valve manufacturer can continue to meet the pre-set quality standards.

At the same time, according to the carefully formulated quality and delivery standards, the China stainless steel valve manufacturer should conduct regular scientific evaluations.

China manufacturer of stainless steel valves evaluation and selection problem because many factors have a certain degree of complexity, according to China stainless steel valve manufacturers set out three factors evaluation system followed, choose easy-to-measure, data collection easy and convenient indicators.

For evaluation and selection, the evaluation of China stainless steel valve manufacturers should refer to the 7 major index systems: Product quality, product price, after-sales service, geographic location, technical level, supply capacity, delivery status. See details as follows:

<1> Product Quality refers to the degree to which the products of China stainless steel valve manufacturers meet the needs of enterprises. Whether the product quality provided by the China stainless steel valve manufacturer is reliable is an important evaluation index.

The China stainless steel valve manufacturer must have a good quality control system, and the products provided must be able to continue and stably meet the requirements of the product specification, expressed by the product qualification rate:

Product Qualification Rate = (number of qualified products / total number of products) *100%

<2> Product Price refers to the cost that a company pays for each unit of product. China stainless steel valve manufacturers should be able to provide competitive prices. In modern supply chain management, product price is no longer the primary factor in choosing a China stainless steel valve manufacturer, but it is still an important factor.

<3> The level of after-sales service is an indispensable indicator for choosing a China stainless steel valve manufacturer. The China stainless steel valve manufacturer should be able to solve the various service needs of users in a timely manner, or provide certain technical support.

<4> Geographical location refers to the distance between the location of the China stainless steel valve manufacturer and the nearest seaport or airport. The geographic location of China stainless steel valve manufacturers has a considerable impact on inventory.

If the unit price of the items is high and the demand is large, the Eastern coastal provinces such as Zhejiang, Jiangsu and Guangdong’s manufacturers will be beneficial to management. Especially some large-scale enterprises need to consider this aspect.

<5> The level of technical means their stainless steel valves commodities technical parameters. Whether they have a strong technical team? Whether they own new product development? How about their product development capability and the required manufacturing or supply ability? Expressed by the rate of new product development:

New product development rate = (Successfully developed new products / total number of products) *100%

<6> Supply capacity refers to the production capacity of China stainless steel valve manufacturers. Enterprises need to verify whether China stainless steel valve manufacturers have considerable production scale and development potential.

This means that the manufacturing equipment of China stainless steel valve manufacturers must be able to be in quantity. Reaching a certain scale can guarantee the number of products required by China stainless steel valve manufacturers. Here, the daily output of a single shift is used to express: (Estimated based on an eight-hour shift)

<7> Delivery status refers to the extent to which China stainless steel valve manufacturers meet corporate orders in a timely manner.

But from the perspective of time to measure the supply capacity of China stainless steel valve manufacturers, the higher the percentage of on-time delivery, the lower the safety stock that the company needs to keep. Here, the on-time delivery rate is used to express:

On-time delivery rate = (number of orders delivered on time / total number of orders) *100%

Among the above 7 indicators, the larger the product quality, technical level, supply capacity, delivery status the better, these are benefit indicators. The smaller the product price, after-sales service, and geographic location indicators the better as these are disadvantage indicators.

How to ship your stainless steel valve from china?

1. Tj chinafreight’aim is to ensure that all the stainless steel valves are not accidentally damaged during packaging and transportation.
2. Before packing the stainless steel valve, Tj chinafreight need to check carefully whether the stainless steel valve model, size, specification, quantity, and connection method are the same as the packing list.
3. Packing method: Unless specified otherwise, all the stainless steel valves are packed in export standard plywood cases fitted with tarred paper on the inside and a layer of plywood between the layers of valves (if applicable). This kind of packing allows normal requirements for transport to be satisfied, guaranteeing effective resistance against humidity.
4. The plywood case full of stainless steel valves shall be wrapped with iron tape around it to prevent the case from being damaged during transportation.
5. The label on the outside of the stainless steel valve’s case should be written neatly and clearly with the destination country, sea port or airport, so that to avoid any mistake during the transportation.

If you’re looking for a reliable freight forwarder to help your shipping stainless steel from China, we will not let you down. Contact Tj chinafreight today to know further information regarding our freight services.

We just want to use our experience to make overseas customers avoid detours and not be deviated by some low-quality suppliers. Tj chinafreight hope all overseas valve importers can directly work with the best stainless steel valve manufacturers in China.

As a senior and responsible professional freight forwarding leader in China, we Tj chinafreight are very familiar with China’s stainless steel valve market. Here we have listed some of China’s excellent stainless steel valve manufacturers recommended by us, in no particular order.

 

Let’s look at yet another import freight term – intensive exam.

If you have any question on intensive exam, you will find the answer right here.

So keep reading to learn more.

What Is An Intensive Exam?

An intensive exam is one of the three types of exams performed on cargo by a customs officer.

A shipping container with cargo gets devanned and all its contents separated.

This is to allow for a thorough inspection by the customs officer who might as well take samples.

The time taken and cost incurred will depend on a variety of factors such as;

• Amount of cargo
• The port
• Size of labor

Performing this process is neither cheap as you are bound to spend from $1000 to $2500 up.

Time taken can range from one week to one month or more depending on the factors mentioned above.

After the intensive exam is completed, the cargo is loaded back into the container.

What Are The Functions Of Intensive Exams In US Customs Clearance?

The intensive exam is performed to prevent contraband such as drugs, dangerous weapons, and other illegal goods from entering the country.

This way, the security of the country is also upheld.

What Criteria Do Customs Use To Flag Shipments For An Intensive Exam?

The truth of the matter is that there are no solid criteria used to determine whether or not a shipment should undergo an intensive exam.

Nonetheless, this shouldn’t worry you much as only 3%-5% of shipments get selected for examination.

Again, this procedure would only occur if the officer suspects something fishy with your shipment.

That said, there are several ways you could counter this but I shall explain that later in this guide.

If you are a new importer, you probably should be prepared for such instances happening. New importers are targeted to having intensive exams performed on their shipment to ensure the credibility of the cargo.

How Long Does An Intensive Exam Take?

Normally, the time taken for an intensive exam to be completed can range from 2-7 days. You need to factor in that there will be two examinations conducted.

The X-ray exams can take from 2-3 days and the intensive exam takes from 5-7 days to be completed.

However, other factors such as the location of the port, size of labor, and container size can slow down the procedure.

A very busy port will experience delays in the examination of your shipment.

Also, having inadequate labor to load and Devan the contents of the container can lead to delays.

Without forgetting that the size of the container or amount of cargo could also influence the time taken to conduct the intensive exam.

Do Customs Open Shipment During An Intensive Exam?

Yes. Once the shipment arrives at the Centralized Examination Station, It’s unloaded from the container and a thorough inspection follows.

Within this period, the customs officer can decide to take samples from the shipment.

This will mean opening the shipment and conducting an inspection.

Will My Shipment Be Safe During A Customs Hold For Intensive Examination?

Your cargo may be damaged after an intense inspection.

To add salt to the injury, neither of the port personnel or officials shall be held accountable for the damages done.

Keep in mind that the repacking of the items in the container won’t be as perfect as initially done.

All these are factors might result in your shipment arriving when damaged after an intensive inspection is conducted on it.

Therefore, you can tell that there is a high need to properly secure your goods before the intensive examination.

What Is The Difference Between VACIS And Intensive Customs Exam?

Unlike the intensive customs exam which might involve opening the shipment, VACIS is done without unsealing the shipment.

VACIS otherwise known as the Non-intrusive Inspection involves a scanner that is passed through the entire container.

This is to reveal its contents without unsealing the shipment.

VACIS is the first examination to be conducted on a shipment and if it doesn’t pass this step, the container will be passed to the tail gate and afterward to the intensive exam.

How Can I Avoid An Intensive Customs Exam?

Customs exams can not only result in significant expenses but also delays which can affect several other factors in your business.

To avoid falling into this trap, below are some measures to consider to minimize the possibilities of being selected for an intensive custom exam.

• Ensure that you have all your paperwork ready and that it can be clearly understood. You might consider hiring a freight forwarder to advise you accordingly and take you through this process.
• Work with qualified and established partners along the supply chain.

This can range from freight forwarders and shippers to customs brokers.

Working with established partners minimizes the possibility of your shipment being subjected to an intensive customs exam.

• If you can, avoid LCL shipping as it’s more likely to be selected for a customs exam as compared to FCL shipping.
• It’s better to import from low-risk countries as opposed to the high-risk ones.
• Do thorough research on the items’ quota information and requirements before the actual importation process begins.
• Ensure that your ISF is filed early enough.
• Conduct accurate valuation of your cargo and present correct figures.

Your freight forwarder will be in a position to advise you accordingly as per your shipment.

• Be aware of any certificates or licensing that might be needed by the partner government agencies.

Is The Location Of The Intensive Customs Exam Any Important?

The location of the intensive customs exam will matter in terms of the amount of time taken to complete the exam.

For instance, if you happen to have the intensive customs exam conducted in a busy port. There’s a higher probability that you will experience delays as compared to it being done in a smaller port.

Additionally, you are bound to evade significant storage fees and have your process accelerated by having your cargo moved to an in-bound warehouse.

What Percentage Of Shipping Containers Are Subjected Through An Intensive Exam?

Only 3% to 5% of shipping containers are selected for an intensive exam.

This happens in a random selection or if the officer suspects anything about your shipment.

Is A Customs Intensive Exam The Same As A Tailgate Exam?

No. In as much as these two are all types of customs exams, they vary.

A tail gate exam will involve the officer breaking the seal and opening the back of the container.

He will have a look at its contents and if everything looks unsuspicious, the container will be released.

As we now know, a customs intensive exam might go an extra mile to unseal the goods while doing the inspection.

Can Customs Still Hold My Package Post An Intensive Examination?

Quite simply, yes.

You need to keep in mind that there might be other agencies involved with your cargo and not just the Customs and Border Protection.

Such agencies can include the US Department of Agriculture, Food and Drug Administration, and Consumer product safety commission among others.

Therefore, once your cargo has gone through an intensive examination, the respective agency concerned with the type of cargo,

you are importing might request further examination.

What Are The Costs Associated With A Customs Intensive Examination?

A customs intensive examination can result in significant expenditures that make your overall import process expensive.

It’s worth noting that the CBP expects you to bear all these expenses even though they don’t directly charge the fees.

The CES is the one in charge of collecting the fees.

To enlighten you on the charges to expect, let’s have a look at the expenses you are bound to incur below;

• To begin with, your cargo will be unloaded and load from the container by CES staff. You will be expected to pay for these services as well as storage fees for keeping your shipment in their warehouse.
• Transportation charges – Your shipment will be moved to the examination station and back by a transportation company.

This adds an extra cost to transportation services.

• Demurrage – Demurrage refers to fees charged by a shipping company for prolonged use of the container.

An intensive examination can take from 5-7 days and this will affect the period which you were to return the container.

As a result, you will end up being charged demurrage fees for the extra days you stay with the container.

Additionally, storage fees might be added based on your specific situation.

With all these factors considered, you can tell how important it is to make earlier arrangements for the payment .

These services  is to avoid further delays and extra charges.

How Do I Pay For Customs Intensive Exam Charges?

You will pay the customs intensive charges to the Centralized Examination Station.

These costs can range from $500 to $1000 and more depending on the port where the examination is conducted.

What Is The Difference Between A C.E.T Exam And Customs Intensive Exam?

A CET exam and Customs intensive exam are more or less the same.

A CET (Contraband Enforcement Team) exam specifically aims at ensuring that no drugs, weapons, or narcotics are contained in the shipment.

This is done by conducting a physical examination of the shipment.

Is An Intensive Exam A Type Of Customs Inspection?

No. An intensive exam differs from a custom inspection in the following aspect.

An intensive exam is one of the types of customs exams conducted on a shipment.

It involves the shipment being transferred to a Centralized Examination Station where it is opened and contents unloaded for examination.

The shipment is afterward released once it meets the requirements.

During an intensive exam, the officer is also allowed to unseal and take samples from the shipment for further examination.

When conducting a customs inspection, the clearance officer examines every feature of your shipment including;

The value, quantity, and properties of the shipment among others.

Other factors that might trigger inspection of your cargo include doubts that relate to;

• Monitoring
• Violation of trademarks
• Customs declaration
• Smuggling

The customs officer can decide to derive samples from the shipment and evaluate them and in some instances.

You might be required to unpack some specific cargo.

This however might result in damages to the cargo.

When doing a customs inspection, you will not only have the duty to tolerate the handling of the cargo and present the shipment for inspection.

You will also you are obligated to provide all information that the customs might need.

How Will A Customs Intensive Exam Impact My Supply Chain?

No one wants to receive news that their shipment is on hold as this might heavily impact the entire supply chain.

Nevertheless, it’s never easy to determine whether or not your shipment will be subjected to a customs intensive exam.

The selection happens randomly.

If by chance your shipment is selected, you have no option but to follow the required procedures stipulated by the port officials.

To prepare you for such situations, here is what you need to know regarding the impacts of customs intensive exams on the supply chain;

It Will Cause Delays

The truth of the matter is that once your shipment is unexpectedly selected for inspection, it’s difficult to determine;

How long it will take for the entire process to be completed.

If your shipment has been held in a busy port, be sure to wait longer for the shipment in line to be cleared before you are reached.

This might take up to a week for them to start your process or even a longer period. And that’s not enough, don’t forget that this is an intensive exam.

Therefore, loading and unloading of the cargo, inspection, and sampling will also be part of the entire exam.

Roughly, expect to experience delays that range from 7- 30 days for this entire process.

This will not only affect your business but also the shipper’s operations.

Additional Costs

Expenditure you will incur for the entire process is one of the major factors that can hugely impact the supply chain.

Think of it this way, your shipment has been held for an intensive exam and you are requested to pay all the costs associated with it.

Such costs can range from transport costs, loading and unloading costs, storage costs, and demurrage charges just to mention some.

In the end, you will realize you have spent from $1000- $2500 for this process.

Might Result In Damages

Just as the name implies, an intensive exam will be more detailed to the specific items in the ship.

Thus you should expect some damages to occur as a result.

This is because the opened box will not be carefully loaded back and therefore the items are prone to damages.

Damages incurred might result in inadequate products for the business or market.

Also, the damages might cause mistrust between the importer and the freight forwarder if applicable.

Working With The Wrong Partners e.g., Freight Forwarders And Brokers

https://youtu.be/ws8I2JbnVwc

When doing your importation, working with established freight forwarders or brokers will make your procedure less stressful.

This is because such personnel are experienced in their work and know what’s required by the customs for your specific shipment.

However, working with the wrong partner can affect the efficiency of your importation.

You might lack enough advice to help you make major decisions that would adversely affect your shipment and result in it being kept on hold.

Also, be keen when importing using LCL as you are more likely to be selected for an examination.

Your freight forwarder can provide you with suitable options for your shipment.

What Is The Significance Of CTPAT In Relation To Customs Intensive Exams?

If you are a frequent importer or planning to be one, then you must read this.

CTPAT (Customs Trade Partnership Against Terrorism) is an important requirement if so, you want to avoid the random examinations by customs.

Being a member of CTPAT will minimize the chances of your shipment getting flagged for inspection.

CTPAT members are considered reliable shippers and therefore given the benefit of doubt when passing through customs.

There are requirements that you need to meet to become a member.

Once you pass, you will never have to worry much about being selected for inspections.

What Is The Difference Between An Intensive Exam And A Customs Manifest Hold?

A custom manifest hold comes as a result of goods being held by customs owing to the submission of inadequate data in the manifest.

If by chance there are concerns regarding your shipment, the CBP will flag them for VACIS/NII exam.

An intensive exam is done after the shipment neither meets the VACIS exam nor the tail gate exam.

It is the costliest exam and entails a thorough inspection of the shipment.

Do Customs Brokers Have A Say In Customs Intensive Exams?

No.

Custom brokers have no say when it comes to customs intensive exams.

Once your shipment has been selected, it will have to undergo inspection at that port until the completion of the inspection.

If it’s a busy port, it might take longer for the processes to be completed as compared to smaller ones.

During this time, you can also minimize the storage fees by having your shipment moved into an in-bond warehouse.

This will also fasten the exam process.

How Will I Know If My Shipment Is Undergoing A Customs Exam?

In case your shipment is flagged for inspection, your customs broker will be notified electronically.

Sometimes, the broker might handle the issue without involving the importer.

However, if it involves more complex issues, the importer is notified by the broker.

After examining the cargo, CBP might either decide to request additional information then release it .

It can also  forward the shipment for further examination.

What Are Other Types Of Customs Exams Are There?

There are three main types of customs exams namely;

• X-ray exam –An X-ray machine is passed through a container to examine the contents of the shipment.

Afterward, the shipment can either be released or forwarded for further examination.

• Tail Gate Exam – The seal of the container is broken and the customs officer examines the cargo.

In case he is not contented, the shipment is forwarded to intensive exam for further examination.

• Intensive Exam -The container is unloaded and thorough inspection is carried out. Some samples might also be taken to help in the inspection process.

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Contact us now for all freight forwarding services.