International Roadcheck: The Ultimate FAQ Guide

If you have any question about international Roadcheck, you will definitely find the answer right here.

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

What Is International Roadcheck?

This is an annual event that occurs within 72 hours across roads in North America.

During this period, certified CVSA inspectors conduct inspections along the roads to enforce driver safety, motor carriers, and vehicles.

The main targets of the international roadcheck are commercial vehicles, which include buses and trucks.

Roadcheck increases awareness to the general public and industry on the importance of roadside inspection programs.

Also, safe commercial vehicle operations.

What Is the General Aim of International Roadcheck?

The general aim of the international roadchecks is to inspect commercial vehicles, Road equipment, and drivers who are using it.

This includes inspection of buses, trucks, equipment, and drivers.

Normally, we experience change due to age or deterioration of the quality of these elements as time goes by.

Motor vehicles will wear out and hence the need of replacing the worn-out parts. Similarly, equipment mighty is faulty over a period making the unsafe for usage.

You will find also drivers who take continuous long trips without resting.

This will result in fatigue making them unsafe and less reliable to use the roads.

All these incidences bring in the aspect of the DOT to conduct an inspection.

This ensures there is no usage of unsafe vehicles, faulty equipment, or unfit drivers who pose a risk to other road users.

Even though you cannot control the roads 100%, it’s important to conduct the DOT for safety and maintenance purposes.

This brings the aspect of the DOT week.

When Is DOT Week?

DOT week is also known as the DOT Blitz week normally occurs during the late springs or early summer.DOT week runs for 3 days.

During this period the CVSA inspectors work tirelessly along the North America roads inspecting motor vehicles and drivers.

We can generally describe the DOT week as a large-scale audit along all roads in North America.

Drivers and carriers need to prepare in advance for the DOT week by ensuring they are working in compliance.

Note, there is a period where the DOT week will have themes.

This means specific elements that the inspectors will be looking out for. They include;

  • Speeding
  • Driver safety
  • Brakes/steering
  • Suspension systems.

Who Are the Parties In International Roadcheck?

We have different parties who work in conjunction with CVSA certified inspectors to accomplish the international roadcheck.

These parties include;

  • Canadian Council of Motor Transport Administrators.
  • The Federal Motor Carrier Safety Administration
  • Pipeline and Hazardous Materials Safety Administration.
  • Transport Canada.
  • Secretariat of Communications and Transport (Mexico).

All these parties help conduct enforcement educational initiatives and compliance of the commercial vehicles, driver’s safety, and motor carriers.

What Is The Criteria Of Inspection During International Roadchecks?

Within 72 hours, over 9,000 inspectors are assigned to conduct inspections.

This is done on the drivers and commercial vehicles across all roads in North America.

They will follow the set protocols of the North America Standard Level 1 Inspection.

This is usually a 37-step procedure that contains two aspects of inspections;

  1. Examination of the vehicle mechanical fitness
  2. Examination of the driver operating requirements.
  • Availability of dangerous/hazardous goods that pose a great risk.

Level 1 inspection has been the primary inspection, the inspectors might decide to dig deeper into other processes to ensure complete compliance.

For instance, depending on the availability of resources and weather conditions, the inspectors a Level 2 inspection.

This involves a Walk-Around Drive or Vehicle Inspection.

The inspectors may also upgrade to a Level 3 inspection of Driver/Credentials/ Administrative inspection.

They can also use the Level 5 Vehicle-only Inspection.

Only the inspectors can discretely choose which of these criteria to use while inspecting the commercial vehicles, carriers, and drivers.

What Is The Main Areas Of Inspection In International Roadcheck?

During the international roadcheck, vehicles will undergo inspections to determine the condition of the different elements of the vehicle.

The inspectors will check the condition of the following elements;

Lighting

Inspection of full functionality of all required lamps on the vehicle.

This includes the mounting, visibility, operations, and proper colors of the lamps.

Steering

Inspect the steering lash by determining the distance/diameter of the steering wheel.

To determine this diameter, turn the steering wheel in opposite directions until the wheel begins to pivot.

Mark the steering wheel at that fixed position.

Rotate the wheel in the opposite direction and mark using the same procedure.

Measure the distance between the two points to determine the steering lash. To be on the safe side compare your steering lash with the allowable amount given.

Brakes

To ensure the brakes are operational, check for the following conditions;

  • Ensure there is no low air pressure in the air system.
  • Check for ABS malfunctioning such as brake warning system devices.
  • Check for any loose, missing, contaminated, or malfunctioning parts of the breakaway system.

Fuel And Exhaust Systems

For exhaust system inspect for any excessive carbon deposits around the clamps areas.

For fuel tanks inspect for leakage, loose mounting, or missing caps.

Coupling Devices

Check for visible space between the upper and lower fifth wheel, improper repairs, and devices that are incapable of a secure attachment.

Frame, And Open-top Trailers

For frames inspect for any defects that will result in collapsing of the frame. This includes beds, sagging, loose fasteners among others.

For van and open-top trailers check for any cracks or loose fasteners.

Suspension

Check for any unsecured axle positioning parts or misalignment of the axle. On the front of the axle, check for misalignments and cracks.

Securement Of The Cargo

Check the tiedown anchor points for any cracking and deformation.

Check for appropriate bracing and blocking of the shipment.

Tires, Wheels, Rims, And Hubs

Check tires for bulges and cuts, tread wear, or inflation.

Check the rims and wheels for missing studs, clamps, or lugs.

Inspect the hubs for missing plugs or caps, lubricant leakage, positioning, and misalignments.

What Are The Hours Of Service (Hos) Rules With Regards To International Roadcheck?

Hours of services rules are general rules that govern every driver’s operational time and the set resting period.

The establishment and maintenance of these hours of services rules are under the FMCSA.

Also, the main of these rules is to provide improvements on safety and minimizing driver’s fatigue.

Additionally, the HOS rules regulate the drivers operational time hence limiting the driver’s income.

In most cases, drivers tend to work extra hours to increase what they earn. This poses a great risk of fatigue.

With the advancement in technology, the HOS process is now automated, thus making it easy to track the drivers and enforce laws.

While enacting the HOS rules the FMCSA has exceptions of emergency cases and adverse driving conditions.

What Is A CVSA Decal?

CVSA decal is a sticker that provides information on the year in which the inspection of the vehicles took place.

Normally, these stickers are colored and are inclusive of the CVSA trademark logo.

After a successful level1/level 2 inspection, and there is no critical violation, the CVSA inspectors will issue a CVSA decal to the vehicle.

A vehicle with a CVSA decal does not undergo the inspection process for three months.

To determine the period of the issuing of the CVSA decal check on the color of the decal.

These colors determine the years of issuing.

  • Green: indicates issued CVSA decals between January, February, and March.
  • Yellow: Indicates months of April, May, and June.
  • Orange: decals issued in July, August, and September.
  • White: decals issued in October, November, and December.

To prevent the vehicle been rendered out of service ensure that the vehicle is in the right condition and all the items are properly working.

Who Must Comply With The Hos Rules?

The drivers and carriers of all commercial motor vehicles must comply with the Hours-of-Service rules.

Drivers operating an interstate business must comply with these rules if the vehicles have the following conditions;

  • Transport hazardous materials of any quantity which requires placards.
  • Weighs 10,001 pounds or more.
  • Used to transports 16 or more passengers including the driver where compensation is not applicable.
  • Used to transports 9 or more passengers including the driver for compensation.
  • Has a gross vehicle weight rating or gross combination weight rating of 10,001 pounds or more?

What Happens If A Trucker Is Found To Be Non-Compliant During International Road checks?

If the trucker is found to be non-compliant with regulatory measures during the audit of the vehicle, the following actions will be taken;

  1. Hauling of the journey for the driver and the cargo.This allows the driver to look for an amicable solution to fixing the given issue.For instance, if the driver violates the HOS rules, they must wait until the given out of service time is over.This normally results in congestions along the roads leading to delivery delays of the cargo.
  1. Immediate examination for further violations as a result of violating one commercial motor carrier.For instance, a single violation of having an expired tail light will lead to speculations of the general condition of the vehicle.
  1. High impact on the compliance, safety, and accountability score of the driver found with a violation offense.This has a major impact on the driver because the scores determine their eligibility to stay in the market.Accountability scores distinguish drivers who practice safety measures.Thus, improving the operational period in the markets.

Will International Roadcheck Influence Capacity Crunch?

During the DOT week, there is a visible fluctuation of the capacity.

Drivers tend to go on vacation and be with families during the 3-day event to avoid the hassle on the roads.

If the CVSA inspectors find any violation of HOS rules, worn out tires, licensing violations.

This will result in the hauling of the vehicle from the road.

For instance, a sample of 18% of freights and 4% of drivers out of a sample of 67,000 inspections in the previous year was rendered an OOS.

This resulted in fewer trucks on the roads translating to a low capacity of freights.

To combat these incidences the few truckers remaining on the roads strive to achieve and adhere to the regulatory measures.

During the DOT week, shipping the freights becomes a question of whether it’s worth the risk.

This is because there might arise issues during the inspection putting the driver at risk of even losing the job.

You will find most drivers do not accept freights after short notices before the DOT week.

This results in fewer trucks on the road and a significant drop in the capacity of freights.

In conclusion, the international roadcheck greatly impacts the capacity crunch.

Will International Roadchecks Affect Freights Rates? How?

Yes, international roadchecks have a major impact on freight rates.

Due to the roadcheck, you will only find a few vehicles shipping freights on the roads.

This means you will end up incurring more costs to ship the freights.

The availability of fewer drivers to ship the freights results in to increase in the cost of shipping the freights for you.

An increase in charges is normally a momentary thing due to a shortage of capacity considering the demand is always high.

What Practices Can I Employ to Minimize Supply Chain Disruptions During International Roadcheck Week?

The international roadcheck week is coming and this does not mean you put on hold the plans of shipping the freights.

You can use/apply different practices to minimize supply chain disruption.

These practices include;

Shipping Early

To prevent delays as a result of the international roadcheck consider shipping the freights earlier before the DOT week.

The inspection process includes a 37-stage inspection which takes a longer duration, hence to account for this, ship early.

Use Of Reliable Carriers Only

You must choose a carrier who will be liable to deliver the freight even amid the international roadcheck.

You should ensure you choose carriers who follow the CVSA guidelines to ensure smooth shipping of freights.

Use Flexible Windows

Reduction in the number of drivers results in to decrease in capacity.

Therefore, there is a need for you to go the extra mile and look for more carriers to help ship your freights

For instance, the availability of a green appointment window allows the carriers you choose to squeeze the job into their schedule.

This means the carriers will comfortably ship your freights and reduce carbon emissions.

Other practices include;

  • If the shipment is not critical, hold the orders until the DOT week is over.
  • Factor in the lead time you will need to source other trucks.
  • Explore other multimodal shipping solutions for alternative shipping options.

How Can Carriers Prepare For The International Roadcheck Week?

Adherence to the regulatory rules given by the CVSA inspectors’ results in a smooth inspection process and delivery of freights in time.

To prepare for the DOT week carries should;

  • Ensure all the vehicles lights are working properly because this is one of the DOT week’s themes.
  • Ensure you are working as per the HOS rules given by the CVSA certified inspectors.
  • Ensure the availability of all the paperwork and your driving credentials are valid and up to date.
  • Review the North America Standard OOS criteria to ensure the carrier and freight comply with regulations.
  • Review the CVSA North American Standard Roadside inspection cheat sheet.

To get more information on which items undergo inspection.

What Are The Most Common Violations During International Roadchecks?

Critical violations result in out-of-service penalties for both the carrier and the freight.

There is a tremendous increase in rates of the OOS in North America from 17.9% to 20.9%.

We categorize these common violations into two;

Vehicle-out-of-service Violation North America 2020

They include;

  • Brake systems result in 28.8%
  • Tires results to 19%
  • Lights results to 13.5%
  • Cargo securement results in 12.9%
  • Brake adjustments result in 12.8%

2. Driver Out-of-service Violation North America 2020

  • HOS:34.7%
  • Other (use of cellphone, moving violations):21.8%
  • Wrong class license:22.2%
  • Falsified logs:14%
  • Suspended license yet to be determined.

What Are The Penalties Of Failed Inspections During International Roadcheck Week?

Violation results in failure inspection meaning there is no issuing of the CVSA decal.

Drivers or equipment with serious violation issues is put out of service for some time.

The OOS greatly affects the accountability score and the driver’s compliance which results in suspension.

Issuing the OOS to the driver or equipment means stalling until you find an amicable solution.

The delay results in loss of finances for both shipper and driver.

Shippers suffer the loss of repair for the OOS order to be lifted.

Is International Roadcheck Week Optional?

International roadcheck week is not optional but rather a compulsory event.

You may opt to skip it by avoiding shipping freight during the 72 hours.

This though does not mean it will always be like that as it sends signals to the CVSA certified inspectors.

What Are Some Tips To Avoid Violations During International Roadcheck?

Being able to avoid violations not only saves you on the cost but also reduces the hassle or roads which occur during the Roadcheck.

It is important to be aware of what needs to be done to avoid the violation.

For instance, this year DOT week concentrates on the lighting.

Here are some tips to help you avoid the violations;

  • Ensure to inspect all the wiring to ensure sealing and splicing out of frayed wires.
  • Ensure that you seal all corrosions with dielectric grease to safeguard the system.
  • Constant cleaning, greasing, and tightening to protect the battery and the overall battery system.
  • Ensure you bundle and securely fasten the wires with a plastic tie to prevent dislodging due to change in environmental conditions.

How Can I Stay Up-To-Date Regarding International Roadchecks?

To stay up-to-date with information regarding the international roadcheck, bookmark this page on the CVSA website.

This allows you constantly view all the recent updates on the international roadcheck.

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Inventory Linked: The Ultimate FAQ Guide

I know you’re wondering what inventory linked is all about.

A reason this guide will answer all your questions on inventory linked.

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

What Is Inventory Linked Meaning?

Ideally, the customs declaration is always linked with the inventory system at the port and specific consignment.

It allows the custom release status to update on the clearance of the customs declaration automatically.

Transfer of updated custom clearance from customs to the port directly in the safest and most secure methods.

How Is Inventory Linked Different From Non-Inventory Linked?

The main factor that distinguishes these two is how to conduct the customs clearance process. Below are some of the differences between the inventory linked and non-inventory linked.

For inventory linked, clearance of goods from port or airport is mostly done electronically. It is a fast and more efficient way of achieving custom clearance.

Additionally, it speeds up the movement of goods and saves on the cost of moving goods from the port or airport.

Thus increase the commercial benefits that come with it.

Availability of inventory linked port also gives you accessibility to ports records, and you can present all entries.

Inventory linking ensures no goods leave the dock without completion of the customs clearance process.

For non-inventory linked, submission of entries is normally made by the port of all the entry details.

The entry of more information is normally manual since the non-inventory linked is not electronically automated.

If you are receiving goods on non-inventory linked, it’s advisable to use/acquire a badge.

To use these badges, it depends on which port you are clearing the goods to or from.

What Is The Purpose Of Customs Inventory Linking?

Custom inventory linking has an important aspect in controlling the movement of goods.

They contain and maintain the movement of goods through temporal storage facilities.

Furthermore, it allows the transition of goods through a frontier.

Customs inventory linking has different functional areas. They include;

  • Consolidation: Facilitate a combination of other consignments into one consignment. It also enables the splitting of one consignment into multiple consignments.
  • Movement: Keeps records of all movements of consignment within custom-controlled storage facilities.
  • Query: Allows querying of data that is held inside the database of the inventory linking export.

What Is The Difference Between GVMS And Inventory Linking?

GVMS (Goods Vehicle Movement Service). It facilitates the movement of goods via the roll-on, roll-off.

To achieve this, presenting vehicles details and custom declaration references of goods is necessary.

Inventory linking involves clearance of the goods from the port of destination.

With this information in mind, it’s easier to get the difference between the GVMS and inventory linking.

Here is the main distinctive feature between the two;

Timing is an essential factor to consider while differentiating the two.

For inventory linking recording of all goods into the inventory of the terminal through the manifest of the shipping line.

After this process, you can release goods from the inventory through custom declaration.

For the GVMS, lodging of custom declaration occurs before the arrival of goods at the port of departure.

This process reduces delays with any custom declaration process, and goods can move freely upon arrival into the UK.

For the border, location it’s up to you to choose which mode to use between inventory linking and the GVMS.

What Is A Community System Provider (CSP) ‘Badge’ In Relation To Inventory Linking?

A community system provider is more of an account that allows you to operate the custom clearance.

The Desecrates e-custom software also provides access to appropriate relevant UK port systems.

In the case of inventory linking export, the CSP covers all modes of transport. Note that if you have separate accounts, you need different CSPs at the airport or port.

Where Do I Get A CSP Badge For UK Custom Clearance?

If you want to acquire a CPS Badge for UK custom clearance, you can get one from the different pennants around the UK.

You can a CSP badge from the following;

  • Descartes systems group.
  • Maritime cargo processing.
  • Community network services ltd.
  • Cargo community system-UK.

How Has The Mandatory Use Of Electronic Communications And Data Processing Systems Impacted Import/Export In The UK?

Automating processes controlling the importing and exporting of goods in the UK results in a significant increase in the economy.

Furthermore, the clearance process of the imports and exports is fast, secure, and more efficient.

The use of data processing systems and electronic communications eliminates the manual entry of information on papers.

It enhances a seamless process of tracing the payment of customs duties and taxes.

It allows the HRMC staff to trace the payments of the duties and impose penalties on individuals breaching the union trust.

What Is Roro Location?

Roll on roll off describes a process of loading and offloading the goods from the container vessel.

For RoRo to take place, there must be specifically authorized loading locations set aside. It is what we term the Roro location.

Below are some roro locations you will find in the UK;

  • Pembroke
  • Fishguard
  • Holyhead
  • Newhaven

What Is Authorized Loading Port?

An authorized loading port is normally under the port authority.

These loading ports have the certification to operate for the offloading and loading goods onto the vessels.

Rules and regulations are governing these loading ports.

For, instance rules are governing which type, weight, loading procedures of the goods.

What Is Authorized Consignor Status?

These are privileges that an authorized consignor gets to carry out transit movements.

This means the authorized consignor will conduct operations without giving the transit declaration or goods to the customs office.

Additionally, the authorized consignor can print transit accompanying documents and a list of items at the consignor’s premises.

You can also remove goods under customs control directly from an authorized location.

To apply for an authorized consignor, you can do it electronically via a custom decision system.

What Are The Requirements For Becoming An Authorized Consignor?

To become an authorized consignor gives you the privileges of starting and ending transit at your premises rather than in a customs office.

To become an authorized consignor, you require the following;

  • VAT registration number.
  • Economic operator registration and identification number
  • You should have an establishment in at least one of the contracting parties of the common transit convention.
  • Any available offenses done against tax legislation or custom in the UK or EU are to be recorded.
    The available custom system controls the movement of goods under transit in the UK or EU.
    In addition, accompanying record-keeping documents for all these movements.
  • Complete hard copy specimen of your manifest, this means choosing the mode of transit you want.
    It can either be through road or air. You can present these manifests in the form of paperwork or use an electronic transport document.

Can I Delay Paying Customs Charges At An Inventory Linked Port?

Yes, it’s possible to delay paying custom charges, but you need a duty deferment account. Acquiring a duty deferment account allows you to postpone or delay making the payments of custom charges, among other tasks.

A duty deferment account allows you to consolidate the custom charges.

For lets a month, then you can make the payments using a direct debit card.

The use of a duty deferment account poses a great threat as it delays the custom clearance process of goods at the port.

Do I Need A Local Agent To Clear Goods For Import At EU Inventory Linked Ports?

Unless you have establishments in the EU or are willing to submit customs declarations yourself, you need a local agent first.

If you don’t have establishments in the EU and want to become an importer of records or supply goods on an intracommunity basis.

Then you will need a fiscal representative.

It means a local agent who will always take care of your intrastate reporting needs and VAT.

What Is A Transit Accompanying Document?

You receive documentation papers from an authorized consignor or departure office indicating when the transit move is due to start.

TAD contains a movement reference number that only matches your transit declaration and a barcode.

These documents should always accompany goods from their point of departure to destination point will all license when need be.

How Do I Know If Using Common And Union Transit Is Right For Me?

The main purpose of these two common transits is to fasten the movement of goods to or from the UK and the EU.

Additionally, they help delay the duty services until the goods arrive at the destination.

To determine which type of transit is best.

It’s important to understand the procedures guarding every kind of transit.

Common Transit

Contains custom procedures that allow movement of goods to, from, between, and through countries under a common transit convention.

It is inclusive of all the EU members of states.

Union Transit

Contain custom procedures that allow the movement of goods that are not in free circulation within the EU.

This movement occurs even with the suspension of customs duties and any other charges.

It also facilitates free circulation of goods within the EU to move from departure to destination. And movement through the third country territory.

What Does T2 Status Mean?

T2 status is also known as the Internal union transit procedure.

T2 status mostly applies to union goods moving from the EU or UK to or through a common transit country.

For instance, they are moving union goods to or from San Marino or to and from Andorra.

In this case, only interests of tariff chapters 25 to 97 of the harmonized industrial system apply.

Note, T2 applies only while moving union goods to or from select territories.

How Do I File A Transit Declaration?

You can achieve transit declaration filing using two methods.

You can use the electronic filing method or use the manual message format.

To file for transit declaration;

  • You need to submit the transit declaration to the NCTS as an electronic message. This message will be sent to the customs offices at the departure port.
  • After successful approval of the declaration, you will receive a movement reference number. A recorded message is sent to the destination customs office from the departure port.

What Does It Mean When Goods Are In ‘Free Circulation’ In The UK?

We refer to the movement of goods freely without restrictions as the free circulation of goods. It means you can move goods into the UK or EU.

Normally, goods entering the customs territory of the UK are usually non-community goods. Meaning they have not yet undergone the custom clearance process, and therefore you cannot market such goods.

Importation of goods into the UK requires custom clearance before placing the goods in free circulation.

Upon payment of customs duties and clearance of all the formalities, you can freely market the goods in the UK.

For goods originating within the UK, they are already in free circulation, meaning they meet all the formalities put in place.

You can market these goods unless there are claims whisky export refund on them.

Union goods do not require union transit or custom status to move these goods within the UK or EU.

Goods moved directly into the UK or EU are normally refer to as union goods if there is no evidence proving otherwise.

For non-union goods should remain under custom clearance, and moving these goods is only via union transit.

How Do I Use The New Computerized Transit System To Move Goods Across The EU?

Use of New Computerized Transit Systems normally is a system of electronic declarations and processing.

The traders have a mandate to use it while submitting common transit declarations.

Additionally, the new computerized transit system processes all the declarations and controls all the transit movements.

To use the new computerized transit system to move goods across the EU, you will need the following;

  • Trade identification number.
  • Your business addresses
  • Economic operator registration and identification number
  • A guarantee.

Furthermore, if you opt to use the online system for the services, you will need the following;

  • Accessibility to a computer that can easily down and print the adobe acrobat pdf documents,
  • Fully functional and high-quality printer. It allows you to print barcodes of transit accompanying documents and a list of items.
  • Specific settings that enable you to access the internet browser.
  • Government Gateway ID is easy to acquire the first time you access the new computerized transit system.

Which Locations Use The Goods Vehicle Movement Service In The EU?

The use of good vehicle movement service is becoming a norm as time passes by.

Without it, you will experience delays in moving the goods due to a lack of good movement references.

This service renders fast movement of goods due to combining multiple good movement reference into one good movement reference.

Below are locations you will need to use the good vehicle moment service;

  • Northern Ireland
  • Larne
  • Warren Point.
  • Belfast.

What Are The Penalties For Breaching UT (Union Trust) Rules And Regulations?

You can attribute breaching of union trust to acts of dishonesty or evading to pay the mandatory custom duty and taxes.

For such events, penalties will be vindicated on the individuals who commit these illegalities.

Normally, the amount that is always equal to or more than the tax or duty evaded is imposed on you by the HMRC.

There is a reduction of this amount into any amount, including a reduction to nil.

Check out the HRMC policy on how these reductions are made.

With no restriction on who can face the penalties, the business’s managers, directors, and secretaries can face fines if found with attempts to break the union trust.

If found guilty of breaching the union trust and the penalty is imposed, you can try and reduce the penalty through;

  • We are offering full disclosure of information.
  • Offering full cooperation will ensure a smooth check process.

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

In fact, we will make shipping from China cost effective and seamless at all times – contact us now.

How To Import a Packaging Machine From China?

As a new importer, do you want to know how to import a suitable packaging machine as easily and professionally as other experienced importers? We’ve dedicated this article to help you. It will take you through a simple process of importing packaging machines from China.

 

How easy is it to import a packaging machine from China?

It is a straightforward process. First, be sure the machine is permitted in your country. Next, find a reputable packing machine producer and place your order. Then pay for the equipment and arrange for the shipping to your location.

China is one of the largest markets in the world that exports machines to other countries.

They produce and sell machines at a more attractive price than other countries. This is because of the mature supply chain and the lower cost of labor, China produces and supplies high-quality equipment. Importing your machine from China is highly beneficial to your business.

For instance, we once had a UK client who is into the equipment business. He confirmed the cost of importing an automatic packaging production line from Italy. Stating it to be over €200,000 for the complete set.

But importing the same equipment from China is below €70,000. Despite the huge difference in cost of importation, the production quality is the same. This made him face the China market for all his machinery purchases.

We will be showing you a straightforward process below. Read further to find out.

 How to Find A Suitable Supplier?

 This is an important stage in your machinery importation process. Getting a reliable supplier at this stage will help fasten the process.

Offline and online sourcing are the two main ways you can get a reliable supplier.

  1. Offline Sourcing

This can be in the form of an in-person consultation. You can attend trade shows like Canton Fair or Yiwu commodities fair. There are also ones that are nice down to serve different market purposes. An example is the Hong Kong International Printing and Packaging Fair. They are the perfect avenue to meet packaging equipment producers.

  1. Online sourcing 

For reliable information sourcing, Google is your best bet. Yahoo, trade webinars, and other similar forms of information are also great to find suitable machine suppliers.

  1. How to Identify a Good Company?

You can look out for machine production companies in these China locations: Zhejiang, Guangdong, Shandong, and Jiangsu.

These locations have expert packaging machine manufacturers, especially Guangdong. You can pay a business visit or have an in-depth look online. This can be through customer reviews on their website or via call.

Endeavor to check the supplier’s background(most importantly, license ), and sales support. Machine manufacturers with past clients are usually reliable. Check for ones who may have exported goods to your country before.

Go for ones with good after-sales services. This can include design assistance, machine maintenance, shipping help, etc.

How to Find a Suitable Machine?

Below are ways we have enumerated to help ease the process.

  1. Confirm the Materials You Need to Pack

If your product are different, you need to decide the one that needs the packaging machine.

A machine used for packaging creams differs from the one used for coffee. Make up your mind on the one you need as there is no one size fits all.

  1. Confirm the Type of Packaging You Want

Machines for packaging goods are of different types. It ranges from vertical, horizontal, premade, sealer machines to coffee/teabags machine.

  1. Determine Your Approximate Capacity Requirements

You need to take note of the following information during your research:

1) Confirm if the equipment can work stably under the voltage of your country.

2) A sort of protection for the packing equipment.

3) Timeframe for complete production.

4) Function compliance certificates and efficiency.

5) After-sales servicing. E.g coaching you or your staff on how to operate and maintain the device.

6) Know the average warranty most manufacturers give.

7) Know the size of the machine and make sure it fit your workshop.

8) Also take note and adhere to safety precautions of the importing country.

9) Ask supplier to offer packaging samples or testing videos according to your packing needs.

While the language barrier may be a concern to new buyers. Do note most suppliers in China have sales representatives who understand English. There are also several mediums where you can communicate with each other.

You can chat over Whatsapp, Skype/zoom to get more details. There’s also email, although the response rate here can be quickly slow. And then phone calls or video call, which are faster way to communicate.

What are the Terms of International Trade?

There are many trade terms, the machinery industry often uses the following ones:

  • EXW (EX- Works): Seller is only responsible for the production and packing of the goods. Buyer needs to arrange the pickup from seller’s factory or warehouse, deal with every following steps and cover the corresponding expenses.
  • FOB (Free on Board): After goods are ready, seller is responsible to load the goods on the vessel or plane, and cover the trucking fee, customs clearance cost and local charge at seller’s place. The transportation cost and following expenses are charged by Buyer.
  • CIF (Cost Insurance & Freight): Seller covers the costs of transportation and insurance. Buyer needs to declare the goods on the customs, unload the goods from the desitination port, deliver them back to Buyer’s place and cover the correspoding expenses.
  • DDU/ DDP: They are the easiest way for Buyer.

DDU means Delivered Duty Unpaid. After Buyer pays for the duties, Seller’s agent will deliver the goods to Buyer’s place.

DDP means Delivery Duty Paid. Seller is reposnsible for all the steps and costs and deliver the goods to Buyer’s place.

Requirements for Certificates and Documents for Importing Packaging Machinery in Different Countries (e.g UK, USA, Canada, EU, Australia)

The general documentation requirements for importing packaging machines are:

  • Bill of Lading
  • Certificate of Origin
  • Commercial Invoice
  • Packing List
  • An EORI number (UK locations only) for tracking purposes

Importing to USA Requirements

  • General requirements above
  • Made in China label.

Importing to UK / EU

  • General requirements above
  • CE Certificate
  • Must support EU type socket inputs
  • A declaration of conformity and a user manual.

Importation to Australia

  • General requirements above (can be faster with the help of freight forwarders)

Calculating duties of imports from China

Check for the import duties of the location you are importing to. You can also go to the organization’s website of the country you are importing to. Type in the HS code: 8422. Then add the total value, insurance, and shipment, including other costs.

What to Pay Attention to When Receiving Goods?

  • Ensure that all parts of the boxes(in and out) are without damage before you sign the receipt.
  • Check if the packaging machine has an manual and all machine parts are received well as the list.

Summary

By thrivingly supporting all of our clients, we have explained an easy process to import packaging machines. We hope that now you feel more capable of importing goods from China.

This guide has detailed the area of focus.  Including things to look out for and compliance regulations. Also, by choosing the right machine and manufacturer, your business will thrive.

For more FAQ about the packaging machine, please click here More Info for First-Time Buyers.

Last Free Day: The Ultimate FAQ Guide

Knowing freight terms is critical when shipping from China or anywhere in the world.

A reason this guide will answer all your questions on last free day.

So keep reading to learn more.

What Is Last Free Day?

Last free day is the final day of a free storage duration when you can collect cargo from the port without incurring demurrage charges.

It also means the last free day before per diem applies on containers not been returned to the port terminal.

What Does Last Free Day Mean For My Shipment?

After the last free day passes, your shipment will be subjected to detention, storage or demurrage fees, whichever is applicable.

Demurrage and storage rent can be charged at the same time when a laden container has not been released from the port.

Detention fee accumulates for each day that the container is not returned to the port or container yard. Detention, demurrage and storage fees are cleared before the cargo is released to customers.

All these costs add to your final destination cost of shipment and can stall your shipment.

What Is Demurrage Charges? How Does It Relate To Last Free Day?

Demurrage charges is a fee charged on a container per day at the port after the free day period lapses. This fee is charged daily until the day you will collect your container from the port.

Demurrage cost can be incurred during import and export by shippers.

When importing, demurrage applies when you fail to pick your full container from the port on time.

During export, shippers are supposed to bring the loaded container at an agreed time for loading.

When they bring the container earlier than expected, demurrage applies till the day of container loading into the vessels.

How Much Does Demurrage Cost After The Last Free Day?

This cost varies per terminal and it also increases the longer the container stays at the port after free time ends.

For instance, a port may charge between USD 80- 160 per container per day on demurrage for the first 3 days.

The cost then goes up to USD 240 from 4 to 8 days and USD 480 for any day beyond 8 days.

If you delay to collect your container by 5 days beyond last free day, your cost will be as follows:

USD 160 X 3 = USD 480 (USD 240 X 2=USD 480) = USD 960 per container per day.

Demurrage must be paid upfront before container can be released by port authorities.

Therefore, scheduling your shipment early enough will protect you from incurring such extra costs.

What Is Detention In Relation To Last Free Day?

This is a penalty charged to customers for using containers beyond the agreed free days outside the shipping container terminal.

This applies whether the container is full or empty provided its not returned to the port or yard on time.

Detention fee can occur in two ways; per diem and driver detention, for equipment and driver waiting time respectively.

Does Driver Detention Relate To Last Free Day?

Not necessarily.

Driver detention is another type of detention which applies for keeping the driver beyond the free time. This fee is charged per hour for every extra hour of delay whether at the destination or pick up location.

Drivers have allocated time for loading and unloading the truck for customers.

Delaying at one point may lead to further delaying other customers and even lose money for those compensated per mile.

Therefore, driver detention acts to compensate drivers for delays caused by customers.

How Is Free Time Calculated In Relation To Last Free Day?

Free time is calculated according to the terminal port or shipping line’s set schedule.

It can start from the midnight when cargo is received at the port and ends at midnight of the last day.

For others, it starts when a container is offloaded from the vessel at the port and end after the allocated period.

Calculation, is then done as per the agreed tariff of the carrier ship or port terminal.

How Many Last Free Days Do I Get?

Normally, free days period last between 3-7 days however, this is dependent on factors like transportation, carrier, port, etc.

Full container load (FCL) offers 3-5 free storage days depending on port congestion, and less container load (LCL) gives 7 days.

Air terminals and rail ports offer 2-3 and 2 free storage days respectively after cargo is unloaded from the vessel.

Do I Need To Know The Last free Day When Shipping With A Freight Forwarder?

Yes.

Knowing the amount of free days granted to your cargo will help you prepare for cargo arrival in advance.

This will ensure truckers collect and drop off your cargo in a timely manner.

Secondly, you will aware on when the days detention and demurrage charges start to apply so as to avoid further delays.

It also gives you time to get extra funds to offset the incurred fees.

Which Factors Determine The Amount Of Free Time Customers Can Enjoy?

Free time is the grace period shippers are granted to collect, load and unload and return containers without incurring any costs.

The amount of free time awarded depends on:

Location

Port location plays a big role in determining the amount of free days it can allow as free days.

Very busy and world’s largest ports like shanghai in China and Singapore can only allow few free days, like 3 days.

This is because of the amount of cargo they handle per day from different parts of the world.

At times, they may not offer any free days thus you are charged demurrages the moment your cargo arrives.

Less busy days grant up to 7 free days because they have less cargo coming in thus less demand for space.

Chosen Carrier

Shipping lines have their own amount of free days typically between 3 to 7 days or even more.

This grace period granted allows you to unload or load and return the carrier’s container free of charge.

Busy ocean carries offer less free time before charging detention fees due to high container demands.

When shipping high volume cargo, you can negotiate with your carrier for extended free time of your cargo.

Equipment And Facility Type

Different container types have different free time period same to facility occupied by the containers.

Special containers such as reefers and open top containers have shorter free time compared to dry containers.

Special containers are delicate and have high demand compared to normal containers.

Reefers have additional expenses such as electricity for their operations and maintenance, thus are costly to hold.

Warehouse facility at the port has shorter free time compared to bonded warehouses because of the number of cargoes it receives.

How Do I Ensure Timely Processing Of Cargo Before Last Free Day To Avoid Demurrage, Detention, Storage And Per Diem Fees?

While it is hard to always avoid demurrage, detention, storage and per diem fees, there are ways to significantly reduce them.

Early Proactive Planning

Knowing all the free days allowed at the port for storage, container use outside terminal, driver free waiting time.

This will enable you plan for your shipment processing before its arrival.

Also, be in constant communication with your carrier to ensure everything runs smoothly.

Additionally, ensure you have all the required shipping documents for customs clearances like bill of lading, commercial invoice, packing list, etc.

Verify them to ascertain that they are all in order to avoid clearance delays.

Use Alternative Storage Facilities

Some port terminals can be congested due to high traffic of cargo into and out of the port.

As a result, the storage facilities may be congested and slow down clearing process all together.

Use other alternative storage facilities located near the port to fasten the clearance process before free day ends.

Negotiate

If you are a shipper who ships high volumes such as 500-1000 containers per year, you may negotiate for extended days.

This will protect you from unforeseen circumstances during shipment that may eat into your free period.

You can also dispatch your cargo early to allow enough time to process and clear it.

Use Expert Freight Forwarders

Planning for shipment overseas can be a complex and time consuming if you do not understand the process.

Having the right freight forwarder handle your cargo can ensure smooth flow of shipment all through without delays and fines.

Pre-clear Shipment

Check if you can preclear your cargo before arrival of the vessel at the port and notify all your agents. Shipment pre-clearance reduces the time spent at the port queueing for clearance hence ensures timely collection of cargo.

Real Time Tracking

This is having visibility of your cargo throughout the shipping process hence you can plan for, collection loading or offloading.

You are also able to see where there are delays and communicate with truck drivers in advance to avoid detention charges.

Have A Back-up Plan

In shipping there are many risks involved such as unpredictable weather conditions, system failure, route congestion etc.

These circumstances can lead to delays which can further translate to penalties.

To avoid such happenings, having an alternative carrier or using different route can help you avoid such fees.

Which Payment Methods Are Accepted For Settling Potential Demurrage And Detention Fees After Last Free Day?

Demurrage and detention fees are paid for upfront before cargo is released from the port and when container is returned.

Terminal authorities, truck companies and shipping lines are responsible for collecting demurrage and detention fees.

They accept different modes of payments such as:

  • Cash
  • Wire transfer such as telegraphic transfer.
  • Debit or credit card.

What Happens If Factors Out Of My Control Prevent The Pickup Of Cargo Or Return Of Equipment Before Last Free Day?

As a shipper, there are factors that can delay you from picking cargo or returning container at the allocated time.

Factors such as port congestion, extreme weather conditions and labor disputes are some of the reasons beyond shippers’ control.

Shippers are expected to pay detention and demurrage regardless of prevailing factors.

In such scenarios, shippers can negotiate for waiver of the fees accrued.

Shippers argue that in such events, detentions and demurrages charges should be halted until the situation is normalized.

This is yet to be considered by port terminal and shipping lines which argue that the fees ensure smooth flow of shipment.

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

Contact us now for all your shipping from China.

Letter Of Indemnity: The Ultimate FAQ Guide

If you’re wondering what letter of indemnity is, then all answers you’re looking for is right here.

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

What Is A Letter Of Indemnity (LOI)?

It’s a document that protects the goods’ owner or carrier against any financial outcome after releasing the goods.

It’s normally provided if you dont presentation of the original Bill of lading.

It’s a contractual document that ensures certain provisions will be met between the two parties involved.

Its main aim is to ensure party A doesn’t suffer any losses if party B fails them. Typically, it holds someone harmless.

The third-party facilitates any damage caused by party A to B or B’s properties.

An indemnity clause is common in leases, licensing agreements, supply agreements, and commercial and legal contracts.

Why Is Letter Of Indemnity Issued In Shipping?

It is an important document that ensures:

  • Efficiency if goods have to be delivered to another port or destination.
  • The indemnity protects the client against any uninsured risks.
  • It provides solutions to irregularities that may occur in the trade.
  • Waiting for the original Bill of lading may take few days or even more sometimes. Presentation of the letter of indemnity grants the recipient immediate access to the cargo.

They can save time and any additional fees like demurrage, storage, expenses, and insurance costs.

Who Are The Parties To A Letter Of Indemnity?

Typically, international trade involves two main parties that are; the buyer and the seller.

However, other parties are involved in making the entire process successful.

LOI parties include:

  • The individual requesting the indemnity is usually the seller or buyer.
  • The entity that accepts the request and performs the specific service against an LOI usually is the carrier.
  • The parties that write risks that have been discussed and agreed on by all parties.
  • The entity that signs the document, for example, a first-class bank
  • , is also the party.
  • This third party agrees to pay party A finances if party B fails to live up to its obligation.

When Is A Letter Of Indemnity Necessary?

Letter of indemnity is used in the following scenarios:

  • If the carrier has been asked to deliver cargo without presenting the original Bill of Lading.
  • This happens if the cargo got to the port before the Bill of Lading.
  • When issuing a clean Bill of Lading
  • When goods are released against lost original Bill of Lading
  • If the cargo has to be delivered to another destination other than the one mentioned on the BOL or charter party

When issuing switch Bill of Lading

  • When issuing antedated or postdated BOL
  • When the carrier has been asked to continue with cargo operations when it’s raining, the ‘Rain’ letter is common in the steel trade.
  • For carrying additional personnel on board, the ship
  • Where split Bill of Lading is used

What Are The Undertakings Of A Letter of Indemnity?

Below are the agreements of the letter of indemnity. They include:

  • The consignee and the bank is backing them up to undertake to indemnify the carrier against any repercussion.

These are which may occur as a result of delivering goods without the Bill of lading.

  • The carrier bears risks to comply with the request of delivering cargo without the BOL. Hence they get the maximum possible security included in LOI.
  • According to the standard letter, there is no limitation on indemnity or any cost arising.
  • If a carrier faces a claim in tort for conversion of goods, then no contract exists between the receiver and the carrier.

This is because the carrier cannot depend on any limitation contained in the BOL.

  • The claimant (receiver) may claim his actual losses that not only include the value of goods.

The cost of acquiring replacement on the market at short notice and downtime will be incurred by the actual owner of goods.

This greatly affects the value of cargo; hence as a carrier, it’s advisable not to accept the LOI limited to the value of the cargo.

  • The indemnity is terminated after all original BOL of specific cargo are issued to the carrier, which normally takes years.
  • Some receivers may offer indemnities that contain a clause that expires after 13 months meaning.

This means any cargo claim should become outdated under Hague-Visby rules after 12 months.

  • In English law, the receiver has like 6years to initiate an action for a breach of contract. This period starts to run only when the claimant has discovered the fraud.
  • A carrier that allows an indemnity that expires after 13 months only gets first notice for defending a major claim after the expiry of the indemnity.
  • Indemnity has a lifespan.

It’s not relied on after 6 years because of the receiver.

The charter may not be in business or may not be in a position to indemnify the carrier.

How Does A Letter Of Indemnity Work?

It’s a contract between two parties who should meet. Party A agrees to pay Party B, who agrees to provide products or services.

If one party breaches the contract, the other party may suffer loss as a result.

The concept of indemnity is to hold someone harmless instead of having the person or business suffer.

Here is an example contract for a construction project.

Party A indemnifies Party B against loss, damage, liabilities, or expenses for work done on the contract.

This means even though party B is responsible for any negligence. Party B is not liable for compensating party A for liability for the action.

What Circumstances May Lead To A Request To Release Cargo Without The Production Of The Original Bill(S)?

They include:

  • If the sale contract between the seller and the buyer has elapsed and the seller wants to sell goods to someone else.
  • When the consignee has a financial dispute with the shipper, indemnity may apply.
  • Also, getting cargo out of the port quicker saves on additional fees while waiting for the BOL.
  • The receiver may aim to steal the cargo while the seller and the bank retain the original paperwork.

This is a rare occurrence.

What Are The Considerations Of A Sound Letter Of Indemnity?

A sound indemnity must contain the following qualities:

  • The entity requesting the indemnity needs to be backed up with a first-class bank, mutual association, or insurance company.
  • Adequate undertaking value that is not less than 200% of Cost Insurance and Freight (CIF) price of goods.
  • Indemnity for all claims and costs in association with issuing a duplicate bill.
  • Validity for at least as long as minimum period for legal actions under contact in the relevant jurisdiction.
  • An effective law and jurisdiction clause to implement the indemnity will also apply for an indemnity letter.

PS: It is advisable to check with the shipper whether payment has been made to release goods.

Never in any circumstance accept a ‘guarantee’ signed by the importer alone.

Instead, secure a legal position and secure a full bank guarantee or letter of indemnity to be safe.

What Are The Two Types Of Letters Of Indemnity?

There are two different letters of indemnity:

  • Letter of indemnity for non-quantitative clauses.
  • Letter of indemnity for quantitative clauses

 Is A Letter Of Indemnity A Legal Document?

Yes, it is.

It’s a legal document that assures one party against another from any potential financial loss.

It’s only considered legally enforced only when it’s issued for legal actions.

What Are The Types Of Indemnity?

There are three types of indemnity clause which includes:

Broad Form Indemnity

The Indemnitor is required to pay for his liabilities and indemnitee’s liabilities whether the indemnitee is partially or 100% at fault.

The contract contains the phrase ‘. whole or in part.’

means if the indemnitee was responsible for 1%, 80%, or 100% of the incident that caused the loss or damage.

The Indemnitor must pay the full value of liabilities regardless of who was at fault.

Intermediate Form Indemnity

It is kind of similar to the broad form.

The Indemnitor pays for the indemnitee’s negligence as long as the indemnitee is not 100% negligent.

If the indemnitee is 99.99% negligent and the Indemnitor is 0.01% negligent, the Indemnitor pays for the liabilities.

Also, the indemnitee and their negligence will pay the liability.

The Indemnitor will not pay for only when the indemnitee is 100% negligent. The phrase used here is ‘. caused in part.’

Limited Form Indemnity

It’s also called comparative.

Here everyone is responsible for their negligence.

I pay for my own; you pay for your negligence.

For example, if a contractor (Indemnitor) is 60% negligent and the owner(indemnitee) is 40%. The contractor pays 60% of the liability cost and the owner 40%.

Ideally, this is not a form of indemnity because neither party pays for the liability of the other even though it seems to be fair.

Who Issues Letters Of Indemnity?

A letter of indemnity is drafted and issued by a third-party institution, preferably a bank or insurance carrier.

He agrees to compensate either party that suffers financial losses caused by the failure of another party.

Who Pays For An Indemnity Policy In Shipping?

The Indemnitor pays for the policy.

What Are The Parts Of A Letter OF Indemnity?

A letter of indemnity should include the following:

  • Details of both parties involved in their full legal names and official or residential address with pin codes.
  • Name and affiliation of the third party.
  • Signature of both parties.
  • A detailed description of items and their intention
  • The date of when the contract will be executed

Should I Sign An Indemnification Clause In Shipping?

We don’t like reading contracts. We are victims of signing contracts or saying ‘yes’ to terms and conditions that we haven’t gone through.

Depending on the type of indemnity you have selected, you take responsibility for your negligence.

Some contracts require you to take total responsibility for all kinds for all reasons. Before signing the letter of indemnity, check the following words:

  • All
  • Or any
  • Every
  • No matter what
  • Regardless of cause

Beware that even well-interpreted insurance policies won’t protect you or your vendor if you sign such an agreement.

Meaning if you sign such a contract, you will be taking full individual responsibility for incurred losses.

No insurance company or bank will help you.

Contracts are very risky and sensitive. Read through them before signing.

Nonetheless, you can only sign such a contract if it’s a binding contract that you cannot modify or negotiate for changes.

What Are The Risks Of Accepting A Letter Of Indemnity?

The following are the risks you may encounter for accepting an LOI. They include:

  • An LOI is as valuable as the person granting it.

Even if it’s a bank or an insurer, it’s vital to consider whether the grantor has the necessary finances available.

Just in case an LOI is called upon or whether there are long-term risks associated.

Consider whether the grantor will still be in business. When an LOI has relied on several years to come or if there is a possibility they will be bankrupt.

Are they reliable or trustworthy entities? Do they have a good reputation? These are factors you should consider.

  • An LOI phrase may not be indisputable. Words should be considered carefully against the circumstance.
  • An LOI in support of an illegal act may not be enforceable.

How Can I Manage The Risk Of Accepting An Letter Of Indemnity?

If you accept an LOI, consider the following risk management tips:

  • Verify LOI is addressed to the right party.
  • Have LOI counter-secured by a reliable bank.
  • Perform financial due diligence on the party granting. The LOI says the bank in terms of the assets they have and the actual location of the assets.
  • Use the most recent International Group Wordings on your LOI.
  • Ensure the LOI is broad enough to cover all liabilities, costs, and losses you may incur.
  • In case there is a chain of LOI, ensure wording appears back to back.
  • Ensure the recipient is the party named in the LOI. You can even go to the extent of asking for their identity and keep a copy as evidence.
  • Ensure LOI is signed by the entity authorized to sign on behalf of the grantor.
  • Avoid having a time limit on LOI. If not, ensure the expiry date is long enough for the provision.

What Are The Rights Of An Indemnity Holder?

On this contract, every entity has its rights. Here are the indemnity holder’s rights.

  • The indemnity holder is entitled to reclaim from the promise and indemnifier all damages. For which he may be forced to pay in any suit.

Any matter to which the promise, the indemnity applies while acting within the scope of his authority, you should sign the indemnity.

  • The indemnity is entitled to recover from promisor all costs he may be forced to pay in suit to defend it.

Suppose he does not go against the order of the promisor. He has acted in the absence of any contract as would have been prudent for him to do.

  • An indemnity holder is entitled to recover from indemnified all sums he paid under the term of compromise of any suit.

If compromise was not against the order of the promisor and the compromiser was not against the order of the promisor.

The compromise was such that it was to be done (prudent) in the absence of any contract of indemnity.

Is It Possible To Limit An Indemnity in LOI?

Absolutely!

For instance, parties can decide to limit the duration of indemnification provision.

Many purchase agreement warranty survives 18 months after closing. Some fundamentals can be excluded for the contract to last for a longer period.

How Do I Write A Letter Of Indemnity?

You may wonder why you need to write an actual letter instead of just having a discussion. Remember, a letter can be used for future reference to suing the other party if they fail to meet the obligation.

Verbal promises cannot be used as evidence in court.

Below are steps on how to write an LOI:

  • The first thing first includes the date the document is being signed.

Have your title in bold as ‘letter of indemnity to state the intention of the document clearly.

  • Include a statement indicating where the agreement would be taken to court.
  • Start the letter by verifying you have initiated a contract with the other party. Add phrases like ‘we agreed on.’. Remember to mention you accepted the terms of the contract.
  • Insert language ‘for goods and valuable consideration.’ This wording clearly states that there is payment by one party in return for an agreement to hold the other party harmless.

In the contract, both parties must give something valuable or money in exchange for the promise.

  • Explain a scenario that may make you not complete the contract. It doesn’t have to be detailed; use simple sentences.
  • Describe what you are capable of doing to ensure the other party doesn’t suffer losses. Offer alternatives if possible.
  • Emphasize your commitment to ensuring the other party will not have to suffer any loss. In case you are not able to fulfill your contract.

PS: Please don’t be tempted to write the contract on your own. Or use the free contact form to write because the language might not be detailed.

If possible, consult an attorney to assist you with the form.

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

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

Liftgate: The Ultimate FAQ Guide

All information you’re looking for about lift gate is right in this guide.

From basic definition, how it works, sizes to specifications – you will find all information you need right here.

Keep reading to learn more.

What Is A Liftgate?

A liftgate is an equipment that helps unload cargo from a truck by attaching it to the back of the truck.

Often, you shall be charged a separate liftgate fee if you happen to need a liftgate for your unloading operations.

Sometimes it is difficult to unload cargo to the ground, probably owing to its size and weight. Therefore, a liftgate becomes the best option to settle for.

Are Liftgate Complimentary Of The Delivery Service?

Usually, a liftgate is not included in the delivery service, and therefore you will need to pay for it separately.

The price charged will depend on factors such as the location of the service provision.

Your carrier and the weight of your shipment, this cost might range from as low as $40 to as much as $100 or more.

However, you might find a complimentary liftgate when working with some freight carriers AS they might have the liftgate service included in delivery as part of FAK (Freight of All Kinds).

Alternatively, the carrier and broker might agree to offer a liftgate service.

While there are such freight carriers offering liftgate complimentary delivery service, you shouldn’t have your hopes high of getting such services as it’s rare.

Your freight broker will advise you accordingly on the costs of a liftgate for your delivery process.

How Does A Liftgate Work?

Mostly, you can easily notice a liftgate attached to some trucks or trailers as they are significantly visible.

Not only are they large, but they also add significant weight to the vehicle’s weight.

For the liftgate to operate, hydraulic pressure forces a piston through a cylinder, making it rise and lowers the gate.

A switch box is behind all the controls of a liftgate through the use of the “up” and “down” function.

The gate is first lowered then unfolded, thus creating a lifting platform. When offloading cargo from a truck, the liftgate carries the cargo and lowers it to the surface.

What Does Liftgate At Delivery Mean In Drayage?

Liftgate delivery refers to a situation where cargo is dropped off at the final destination using a liftgate.

When selecting delivery options, choose a liftgate delivery service that the truck driver will be responsible for loading and unloading your cargo.

You might be required to move your cargo once it’s off the liftgate. Depending on the delivery service option you have chosen.

Do I Need A Liftgate Service?

The answer to whether or not you will require a liftgate service will not only depend on the size and weight of your cargo.

But also the availability of other options such as forklift or shipping docks.

When transporting heavy cargo, you should probably consider seeking liftgate services to facilitate an efficient offloading process.

A liftgate will also ease the lifting of the cargo to the weight of the trailer.

Alternatively, liftgates come in handy in situations with no alternative options such as forklifts, pallet jacks, or shipping docks.

What Does A Liftgate Service Entail?

A liftgate service involves the use of a liftgate to offload or load items from a track.

The liftgate is normally positioned at the back of the track or under the track.

If you choose a liftgate service, the track driver will offload your items off the liftgate surface.

If it is a delivery, you are not exempted from moving your cargo once it’s off the liftgate, not unless it’s an inside delivery service.

What Are The Benefits Of Using Liftgate Services?

It’s no doubt that liftgates are quite advantageous, and here is how;

  • Eliminates any risk of injuries– Using liftgates lowers the risk of injuries to involved staff.
  • Prevents damage – Liftgates prevent damages to items as it’s hard for the load to fall off from the liftgate and break or get destroyed.

Such accidents might happen when lifting loads without a liftgate and might result in additional costs and losses.

  • Less labor– Machines (including liftgates) are meant to make work easier, and some eliminate the need for manpower.
  • Cost-efficient – Since you will need less manpower, costs will be significantly cut, and therefore you can easily save on costs.

What Is The Difference Between Tailgate And Liftgate?

2020 GMC Sierra AT4

While these two have almost similar functionalities. Tailgate is a hatch located at the vehicle’s rear that’s lowered to facilitate the loading and unloading of cargo.

A liftgate is not a hatch, but a closure found at the rear of a vehicle. It can be mechanically operated when loading and unloading heavy cargo.

What Are The Varying Liftgate Service Requirements?

You require liftgate service when loading and unloading heavy material from a truck or trailer.

Liftgate services might be required in the following areas;

  • On construction sites – Liftgate is used to offload building materials from trucks.
  • Lack of access to a loading dock – Facilities that lack a loading dock need a forklift or a liftgate to load or offload a trailer, especially if the cargo weighs more than 150 pounds.
  • Residential deliveries – Furniture, building materials, and other heavy objects will require a liftgate when doing home deliveries.

What Are The Available Liftgate Options For Delivery Trucks?

Before request a liftgate service, it’s important to remember that there are different types, and each serves a specific function.

The functionality will be based on the type of cargo to be handled.

Let’s have a look at the three types of liftgate options below;

Cantilever Liftgate

This would be the ideal liftgate for use in any terrain as your cargo will remain on level regardless.

You can easily load or unload cargo from the side or back. Owing to the spacious platform as well as adjust the platform’s tilt.

Cantilever liftgates are operated using remote control; therefore, less manpower is needed to man the liftgate folding and unfolding functions.

It is compatible with pallets and carts owing to its unique design options like cart stops.

Tuck-Under Lift Gates

One of the benefits of a tuck-under liftgate is the easy access to the cargo doors. You will also enjoy easy rolling of cargo into and out of the truck.

This is facilitated by the standards models, which can tilt to form a ramp.

You will find this type of liftgate popular among dock height trucks which can perform the loading and loading function without a liftgate.

Rail-Lift Gates

This will be a suitable option if you plan to load or unload heavy cargo on the streets.

You can easily notice a rail liftgate.

By checking whether a truck has a liftgate lying flat onto the rear of its body when not in use.

Rail liftgates have not only a large platform but also a levelled one that provides maximum stability.

The disadvantage of this liftgate is that it consumes a lot of space at the rear doorway when it’s not engaged.

What Are The Considerations For Choosing A Liftgate?

There are some important considerations you need to factors in when selecting a liftgate. Here are some of them;

  • When using a cart, pallet jack, you’ll want to ensure that the system is compatible with them, depending on the configuration.

A tuck-under liftgate will tilt once they reach the ground to facilitate cargo rolling, while rail-liftgates lack this feature.

It’s important to enquire whether it’s a “level ride” platform (maintains the same level as the truck bed throughout the process). Or a “standard ride” (tilts towards the ground as seen with tuck-under liftgate) platform when choosing your liftgate.

  • Ensure that the liftgate can sustain the weight and dimensions of your cargo. While considering this, don’t forget other factors such as the weight of the driver, pallet jack, or second handler.

Sum up all these, and if you can, allow for extra weight.

What Is A Liftgate Fee?

A liftgate fee is a money charged on liftgate services offered for a location that lacks a loading dock.

A trucker will determine whether or not you will require a liftgate and charge you if applicable.

How Much Does Liftgate Service Cost?

The cost of a liftgate service will vary depending on the weight, location, and carrier you choose.

Normally, the costs might range from as low as $50 to more than $500.You can as well negotiate the fee. If so, you plan to use a specific company for your future shipments.

Why Do Carriers Charge For Liftgates?

Carriers, just like any other business, need to make profits from the services that they provide. What do the liftgate charges cover, you may ask;

  • To begin with, it’s worth noting that not all trucks come fixed with liftgates. Therefore, if you need one with a liftgate, you will have to pay additional costs for it.
  • Secondly, just like you would install a swimming pool in your property to add value, so does a liftgate.

A liftgate is an additional investment that also raises the value of the truck.

Capital will be required to purchase and have it fixed, which explains why you shall be charged for it.

  • Also, you need to remember that a liftgate is a machine. This means that it will need to be serviced and maintained now and then. Thus the fee was charged.
  • As if that’s enough, liftgates add extra work to the driver.
  • Finally, we can’t forget to mention how liftgates have made it convenient to load and unload cargo, thus benefiting buyers.

What Are The Dimensions Of A Liftgate?

Dimensions of a liftgate are diverse and often include; 80” to 89” wide and 30” to 70” deep. Most liftgates are deep enough to accommodate a standard pallet measuring 40” x 48” standard pallet.

Keep in mind that the size of the truck will influence the width of the liftgate.

Given the dimensions of the truck, the liftgate should have fewer dimensions as compared to the truck.

For instance, let us imagine that your truck measures 96” wide. The liftgate you can use should be around 82”.

It is important to always check with your carrier on the size of liftgates available. More so if you plan not to transport on standard 40” x 48” pallets.

What Are Liftgate Limitations On Dimensions And Weight?

Liftgates can be used on cargo that is 96″ wide or less and 48″ deep. Thereby they can conveniently handle standard-sized pallets.

A standard liftgate will handle a maximum of 2500 lbs, and in case of any additional weight, alternative options need to be organized.

It’s important to work closely with your freight broker to get appropriate advice in case this happens.

What Are Liftgate Equipment Safety Considerations?

Here are some safety considerations on liftgate equipment;

  • Be aware of how much your liftgate can handle and the weight of your cargo to avoid overloading.
  • Ensure that you have several chocks in the truck if it lacks cart stops to prevent items from rolling off when moving items in and out of the truck.
  • Avoid using a liftgate for other purposes apart from its designed function.
  • Ensure that the surface does not slip.
  • Carefully note where the liftgate and the truck bed join as failure to notice this might result in avoidable injuries.
  • Always select a liftgate with cart stops whenever you rent as they inhibit items from rolling off.
  • The liftgate and floor of the truck should be uniformly levelled to facilitate easy rolling of cargo in and out of the truck.
  • Avoid placing your hand and feet near the pinch points.

Is Liftgate Service Always Available?

Not all trucks are fitted with liftgates, and therefore, the service is not always available.

You need to plan early and know whether or not you might require a liftgate, after which you will inform your carrier.

If you failed to request a liftgate and the truck comes without one. You will be subjected to additional costs, not forgetting the delays caused.

To avoid all these troubles, be sure to highlight that you will need a liftgate on your bill of lading.

Do I Need A Liftgate Service If I Have A Forklift?

No. A forklift is an alternative option that serves the same purpose as a liftgate. Therefore, you will not need a liftgate if you have one.

With a forklift, the driver will only have to position the cargo at the back of the truck to facilitate the unloading process.

All charges, whether limited access residential or non-commercial, will apply apart from the liftgate fee.

Ensure that your customer is aware that you don’t need a lift gate, which might be included in the total bill.

Sometimes, it happened to shippers, and they are presented with a lift gate fee that they requested nor utilized.

This happens when the driver and consignee choose to include the fee. Because they thought it would be convenient to use a lift gate.

At Tj chinafreight, we provide fast and reliable solution when importing from China.

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

Live Unload: The Ultimate FAQ Guide

Let’s look at some of the fundamental aspects of live unload in shipping industry.

If you have any question on live unload, you will find the answer right here.

Keep reading to learn more.

What Is A Live Unload In Shipping?

Live Unload is also referred to as rapid unload. A term used in the shipping industry refers to offloading a vessel transporting cargo in a shipping container.

Here the trucker waits for the container to be unloaded on-site instead of dropping and leaving.

S/He then returns the empty container to the container yard at the port.

When Should A Live Unload Be Arranged?

Consider Live Unload:

  • If your goods are in low volume.
  • Suppose the cargo can be unloaded within 2 hours. Most truckers offer 1-2 free waiting hours.

When the 2 hours’ elapses, they charge an additional fee on an hourly rate (approximately $75 per hour), reflecting on the quote or invoice as a trucking wait fee.

  • If your cargo is fragile hence needs to be handled with care under supervision.
  • Also, if you have palletized cargo and the warehouse has forklifts, the unloading process will take the shortest time possible.
  • If your goods are perishable, hence they need to be offloaded faster before going bad.
  • If the goods are valuable and need to be inspected after then live unload should be arranged.

How Does A Live Unload Work?

Live unload occurs at the delivery point. First thing first, you need to schedule for a live unload early in advance.

I think it is best done in the morning because of the fresh energy we humans have.

The trucker arrives at the warehouse at the specified time. S/he has a specific unloading dock or garage door.

The process of unloading is supposed to begin immediately after the driver pulls up.

Well, it’s not always the case. The driver is expected to stick around and watch as the container is being emptied.

Depending on the contract signed, the driver may or may not be paid during the first two hours. However, the first two hours are mostly free.

Drivers charge if you exceed the 2 hours.

You pay according to the driver’s prorated hourly rate. Meaning the price may differ among drivers.

Live Unload highly depends on the staff at the warehouse. If they have facilities and equipment such as lifting devices, the process can even take 30 minutes.

The type of cargo you have also determined how fast or slow the process may take.

For instance, if you have palletized cargo and forklifts at the offloading point, the process will be quick.

After a successful offloading process, the trucker leaves the site with an empty container to the container yard or proceeds to the next pick-up point.

Live Unload can be tedious and a burden to the drivers.

Especially if there is a schedule mismatch if they get delayed at the warehouse, which may affect their next delivery.

How Much Space Do I Need for A Live Unload?

Here are the dimensions of a 20ft high cube container.

 You need the following amount of space:

  1. Enough space for the truck to drop the container.
  2. Tilt-tray trucks are mostly used to deliver cargo. You need:
  • A slightly levelled area,
  • 5m of high clearance
  • 3m of width clearance
  1. Roughly 20m in a straight line from where the container is placed down

A side-loading truck is best for a limited space.

What Is The Difference Between A Live Unload And A Drop And Pick?

Both are truck delivery options; however, they are different.

Live Unload is where the driver drops off the container at a warehouse. Waits for the container to be unloaded, leaving the empty container at the port or the next delivery point.

Drop and pick, on the other hand, is self-explanatory. The driver literary drops off the container at the warehouse then picks another empty container before leaving.

It’s cheaper than a drop or lives unload. The driver doesn’t have to make another trip to the warehouse or wait for the truck to be unloaded.

Nevertheless, it’s convenient if you normally receive containers after a few days.

How Does Live Unload Vs Drop And Hook Compare?

Drop and hook is the same as Drop and Pick, so don’t get confused.

Here is the difference between the two:

  • Live Unload. The driver has to be physically present to watch the offloading process. While Drop and Hook, the trucker doesn’t have to supervise the offloading of cargo.
  • Live Unload, the trucker waits for the container they came in while the driver picks a different one in Drop and Hook.
  • Drop and hook are cheaper as the driver doesn’t wait for the container to be unloaded. Also, it doesn’t go back to the warehouse for the container; s/he picks and leaves.
  • The container doesn’t have to make a schedule in Drop and Hook, unlike in Live Unload.

How Long Does It Take To Unload A Shipping Container?

It depends on the content in the container.

If it’s palletized cargo and there are lifting devices like forklifts and skilled manpower. It can be unloaded in less than an hour on average.

For loose cargo in different sizes and shapes, most warehouses take 3-4 hours for a normal 800-1200-unit container.

Non-standard cargo takes an entire day. Availability of material handling gears and skilled manpower can help speed up the process.

Do I Need To Rent A Ramp For A Live Container Unload?

Yes, you do. Depending on how often you need to use a ramp, you can hire or purchase one.

Ramps are very important. They help

  • Avoid double handling of cargo
  • Are relatively cheap to purchase
  • Are mobile hence can move along the site
  • Can quickly set them up

Ramps helps you run a forklift from the ground up to inside the shipping container while the container stays on the truck.

Stationery ramps can be fixed into position. You can also use mobile ramps to move around the site.

The only downside of ramps is they take too much space, and it’s dangerous to run forklifts up and down.

What Other Equipment May Be Needed For A Live Unload?

Apart from a container, truck, and a trucker, the following equipment is required for Live Unload to be successful:

  • Cranes
  • Forklift
  • Ramps
  • Shelves
  • Bins and drawers
  • Racks
  • Telescopic boom conveyor.

What Are The Considerations For Unloading Sensitive Or Dangerous Goods?

Dangerous or sensitive goods can be in solid, liquid, or gas states.

The hazardous effects they can cause can be either minimal or fatal; hence they need to be handled with care:

Here are tips you need to consider while offloading cargo:

  • Make the staff aware they are handling dangerous cargo. Yes, even if the goods have been labelled. This will remind them to wear protective gear.
  • Don’t drop them off the trucker; they may explode. Handle them with care.
  • Don’t place them next to others, especially if they are different goods that can react when they come in contact.

What Are Some Tips For Unloading A Live Container Quickly?

Time is valuable, especially where money is a factor.

Here’s how to quicken the unloading process:

  • Ensure the container is placed on a levelled surface.
  • Unload the container directly into the garage.
  • Have enough manpower to assist; the more the merry.
  • Liaise with the warehouse management before arriving so that they get ready to unload after you pull up.
  • Choose a site that is free from people and vehicles to avoid damages and accidents.
  • Install battery-powered lights inside the container for cargo to be seen clearly.
  • Consider using lifting devices and equipment such as sloppy ramps to ease the process.

How Do I Find Lumpers For A Live Container Unload?

The process of unloading cargo highly relies on manual labour. Therefore, you need lumpers. Contact the freight unloading services near you.

They will provide fast and accurate offload services.

What Are The Benefits Of Hiring Professional Container Unloading Services?

Professional container unloading services come with the following pros:

  • They are reliable.
  • Reduces the possibility of product damages; you are sure of safety.
  • Are fast hence reducing truck waiting fees
  • They are cost-effective depending on the company you select
  • They ease the offloading process.
  • Use of automated offloading systems and equipment provides workers with safe working conditions
  • They create an organized working environment.
  • They maximize the space available.

What Are The Considerations For Unloading A Shipping Container?

Below are some tips you need to consider to have a successful offloading process:

  • Make a schedule with the warehouse to create space for you and be ready to receive you.
  • Ensure the offloading space is a levelled ground.
  • Slowly and carefully open the container door just in case the goods moved or shifted during transit.
  • Put on the lights so that the offloading crew can see through the container.
  • Be on the lookout for any risks and adjust your strategy if the conditions change.
  • Instruct your workers on the safety procedure they need to embrace.
  • Hire enough skilled manpower.
  • Use equipment like cranes, forklifts, vertical container lifts, etc. Use a mobile ramp around the site.
  • Ensure your workers have safety gear, especially while handling dangerous cargo.

What Are The Key Hazards Associated With Unloading A Shipping Container?

They include:

  • The container is placed on uneven ground.
  • Lack of enough lighting to allow offloading of goods.
  • Loose items that were not secured adequately during transit; hence some fall from the height.
  • Unpalletized cargo.
  • Loose items that force the door open or that fall on the offloading crew when they open the container door
  • Unsafe systems applied during the offloading of cargo include:
  • Having congestion around the working area that may cause accidents.
  • Ignoring risks associated with slip, trip or falls
  • Failure to provide information of the content in the container, whether it’s dangerous or overweight.
  • Failure to manage chemical spillage inside the container
  • Ignoring risks that may occur as a result of exposure to fumigation chemicals in the container.
  • Lack of facilities and equipment in the warehouse that force the workers to carry heavy items in awkward positions.

How Do I Control Risks During A Live Container Unload?

You can control or eliminate risks during Live Unload by:

  • Liaise with the unpacking crew to ensure they are fully prepared.
  • Consult with the other site users before offloading the container on the ground.
  • Consider the container pathway before it arrives. Get rid of any obstacles like overhead power lines etc.
  • Choose a levelled ground for unpacking. Ensure the space is enough to open doors and offload.
  • Check the stability of the container. If it’s situated at height to access a loading dock, lower the landing leg of the trailer.
  • Ensure there is adequate lighting in and around the container for operating plant and offloading.
  • Consider the environmental conditions on-site. Whether it’s raining, sunny, the area is well ventilated, and whether or not it’s safe for workers to work there.

Does Cargo Insurance Cover Lost Or Damage During A Live Unload?

No, it doesn’t.

There are different types of cargo insurance and types of policies.

The responsibility for securing the cargo is divided between the shipper, consignor, packer, driver, and the carrier.

Loss or damage is subjected to general average, fire, accident, entry of seawater in the vessel, etc.

It covers something that has happened that was not expected. Therefore it doesn’t cover damage or loss that may occur during Live Unload.

The party liable will take care of that.

How Do I Ensure Cargo Is Safely Packed For Transit And Unloading?

Here are packaging tips you need to put into consideration:

  • Don’t underestimate internal packaging. Use air cushion and bubble wrap on fragile cargo. Tape the edges of the internal box.
  • Fill any empty spaces in the box to stop goods from moving. Band the goods together using tape.
  • Use double-walled boxes on the exterior. If your using recycled boxes, ensure they are inside out to cover the label of the previous shipment.
  • Label your cargo, i.e. whether it’s dangerous or fragile so that they can get the special treatment they deserve.
  • Consider creating or palletizing heavy cargo.
  • Choose a container with fastening straps to fasten your cargo.

Is There A Minimum Time Requirement For Live Container Unloads?

Typically, it takes 1-2 hours to offload a 20ft container.

However, the process of offloading can take 30 minutes or even less.

It all depends on the type of goods you have, manpower, and equipment available.

What Are The Alternatives To Live Unloads?

We’ve learned all about Live Unload. If it’s not your cup of tea, your carrier can offer you alternatives.

You can unload your container from one of the depots.

The carrier will then transport the container directly to the depot, where it will be waiting for you to unload.

Most trucking companies offer several days’ unload time and can also provide fair storage rates.

For all your shipping from China, Tj chinafreight is here to help – contact us now.

Lift Gate Fee: The Ultimate FAQ Guide

In this guide, I will answer all your questions on lift gate fee.

So, if you want to learn more about lift gate fee – read this guide.

What Is A Liftgate Fee?

The Liftgate fee charges you pay when offloading or loading using the truck with liftgate.

These devices vary from electrical, lowering, and hydraulic devices.

Furthermore, the liftgate fee also applies for delivery sites with no docking areas.

You should remember that the liftgate fee varies depending on the amount of offloading and loading cargo.

Other factors include the type of truck and carrier.

Truckers should notify prior for trucks that do not have a liftgate.

This facilitates arrangements for special offloading and loading of cargo. Liftgate requires high maintenance and is costly.

This may be a reason you find trucks with no liftgate at all.

What Is A Liftgate Truck?

This is a piece of hydraulic equipment or box truck which contains a liftgate that you can attach to the back of the truck.

Loading and offloading cargo can sometimes be a big hassle due to the unavailability of the right equipment.

This is where the liftgate comes in.

A liftgate is normally a mechanical platform that requires mechanical devices to lift and lower the cargo.

Liftgate makes the process of loading and offloading easier for material handling equipment such as trolleys and hand pallet trucks.

What Is A Lift Gate Fee Service?

Liftgate services are normally additional services that carriers offer while delivering or picking up the cargo.

Unavailability of mechanical devices such as forklifts and loading docks results in seeking liftgate services.

The freight carriers will assist in offloading or loading the heavy cargo on or off the truck. Carriers determine how heavy the cargo is while rendering the services.

Liftgate pickup or Liftgate delivery are the common factors that determine where this service will be offered.

Carrying out the liftgate service results in to offload or loading of the cargo from the liftgate platform.

Delivery of the cargo requires you to move it after the liftgate unless you have an inside delivery.

When Will You Pay For Lift Gate Fee Service?

From the above summary, liftgate service is optional unless need be.

To determine when you require liftgate service depends on the following factors.

  • The infrastructure of the delivery and pickup locations: Mostly, you will find facilities/warehouses with no loading docks.

This makes it difficult for forklifts and truck pallets to offload and load cargo from the trucks.

Truck drivers should seek liftgate services to lift the material handling equipment to load or unload the cargo.

  • The type of cargo: Heavy materials, many goods, or personal effects require safe handling.

Lack of loading docks or material handling equips will result in you adopting the liftgate services.

This is because you cannot offload or load the goods using your hands. It is tedious, and safety is not guaranteed.

  • The cost that comes with purchasing material handling equipment is very high. This results in seeking liftgate services from carriers of your choice.
  • Additionally, you can use liftgate services to carry personal purchases that you cannot carry by hand.

For instance, ridges it’s obvious even if you try, you cannot carry this appliance using your hands due to the weight.

Does A Lift Gate Fee Service Include A Pallet Jack?

Delivery of the shipment from one docking location to another requires the use of a pallet jack.

This pallet jack can perform the services of offloading and loading the shipment on the truck.

Liftgate service applies where there is absentia of docking bay or the material handling equipment such as the pallet jack.

Therefore, the liftgate service does not necessarily include the use of a pallet jack.

Is Inside Fee Delivery Inclusive Of Lift Gate Fee Service?

No, inside fee delivery and liftgate services are two separate charges.

These changes occur in different scenarios. Inside fee delivery occurs after offloading the shipment using the liftgate.

No consignee would want the shipment left on the loading dock; hence the aspect of inside delivery comes in.

We consider inside delivery fees as charges as a result of the following;

  • An additional requirement of the equipment. Example use of pallet jack.
  • Additional time.
  • Need for additional manpower.

How Much Is Lift Gate Fee?

To determine the lift gate fee, you first need to consider the following factors the size and the liftgate model.

Considering these factors, a single liftgate can cost between $2,000 and $7,000.

These type of liftgates normally holds up to 3,500 pounds of shipment. This is equivalent to 1.6 tones and can still comfortably fold back.

Who Pays For Liftgate Fee?

Normally, the consignee has the obligation of making payments of the liftgate fee.

Even though the charges will not apply directly, during offloading and loading with the availability of the liftgate, the trucker will first request to use it.

The charges made while using the liftgate by the trucker will be incorporated on the final involve receipt.

This is where the consignee comes into making the payments.

Additionally, when the consignee requests liftgate pickup or delivery, the carrier does not invoice the consignee as per the carrier tariff services.

In case of prepayment of the shipment to flock freight, the bill must go through the same party.

All these charges will be passed and given to the consignee who should make the payments. The payments pertain to the execution of the shipment.

Is Liftgate Fee Negotiable?

Yes, the liftgate fee is negotiable.

You will often find that the carrier’s lift gate fee is often a flat rate.

This means for every crossing border or diversion of miles, the liftgate fee remains constant, giving the consignee room to negotiate.

While working with carriers, you have all the rights to disagree with the liftgate fee they have put in place.

The frequency with which you ship with these carriers should indicate the relationship that is there.

For instance, if the carrier charges $90 per hour, you can negotiate for a lower amount of up to $65.

It’s also important to be aware of tariffs and contacts rates that will benefit you and the carrier. This creates a rappel where both parties benefit at the end of it all.

Note, you should also consider using third-party logistics.

They best know how to negotiate liftgate fee rates.

Will I Pay Lift Gate Fee Even If I Open An Account With The Trucking Company?

Acquiring an account with the trucking company does not guarantee free liftgate services.

The key thing to keep in mind is how many of the trucks have liftgates.

It will be unreasonable to get a free liftgate fee, but they delay shipping.

Make sure the company you are signing up for has enough trucks equipped with liftgates.

Why Is Lift Gate Fee Service Essential?

Liftgate service has extreme benefits that allow you to permanently opt to use the services. These benefits include;

  • You require less manpower: the delivery team performs all the tasks of offloading and loading shipment. This means the minimal need for extra manpower to perform the tasks.
  • Avoiding damages: Damages as a result of regular truck surfaces result in extra expenditures.

These additional charges are mostly higher than the original fee. If this happens, you will be liable for the damage fee on top of the liftgate charges.

  • To avoid this, ensure proper handling of fragile shipments.
  • Evading injuries: The common injuries at different workplaces are a result of lifting heavy materials/loads.

These injuries have dire consequences such as delays, pose harm to employees. To avoid these, adopt using the liftgate, which provides lifting services.

Do All Carriers Charge Lift Gate Fee?

Carriers who provide the full-truckload and less-than-truckload do not offer liftgate services. They deliver the shipment directly to the consignee who has loading docks, making the process easier.

Therefore, the carriers find to need to equip the liftgate at the back of the truck.

If you are unsure of the availability of the liftgate services, kindly reach out to the carriers for clarification.

How Do I Request For A Liftgate Service?

This mostly occurs during the delivery of shipment. We recommend you directly involve the carriers.

The carriers will require you to provide the following information;

  • Pickup and delivery addresses
  • Description of the cargo.
  • Availability of loading bay.
  • Availability of material handling equipment.

Some of these trucking companies will always recommend the use of material equipment handling such as pallet jack.

This facilitates the easiness of offloading and loading trucks.

It’s also advisable that you go through the terms and conditions before taking a step to request liftgate services.

Open Back Door With Ramp at Delivery Truck

What Are The Alternatives To Liftgate Delivery Service?

There are other options to offloading and loading the shipment on the trucks.

Adopting the various alternatives depends on the budget you have, location of the business.

Some of the alternatives besides using the liftgate service include;

  • Loading docks
  • Use of forklift
  • Use of pallet jack.
  • You may also opt to outsource the shipment prep and loading. This option is a little bit expensive.

With the above options, you can easily choose what best suits you and liftgate services that pose minimal damages.

Do Carriers Charge One Liftgate Fee If Shipping From Two Separate Locations?

No, carriers do not charge one liftgate fee if shipping from two separate locations. Normally the charges of the liftgate services are as per a shipment.

You can only charge one liftgate fee when you are shipping orders from one single location.

You need to ship from two different locations arises. Then you should be ready for two separate liftgate fees.

What Will Happen If I Use A Lift Gate Service Without Prior Intimation?

Use of liftgate service before intimation has dire consequences. The following scenarios would occur if you decide to use liftgate service before intimation;

  • If the delivery receipt doesn’t indicate any charges on the liftgate fee, whereas it’s clear there is the use of one—it results in additional charges.
  • The use of a liftgate and the presence of a signature on the delivery receipt are not disputable.
  • If you request a liftgate and the carriers do not provide or charges made on the liftgate, there is no evidence of use. You can dispute this on the dispute form provided.

Who Takes Responsibility If Goods Get Damaged When You Pay Lift Gate Fee?

The presence of any damages or defects on the shipment during the liftgate service holds the carriers accountable.

The carriers will be liable for these damages, if not whole, but to a certain percentage.

Carriers are responsible for the damages since they have the obligation of rendering the liftgate services. This is proven under the shipping policy.

How Can I Reduce Liftgate Fee In Shipment Pickup/Delivery?

The key point to keep in mind is that the liftgate fee is negotiable.

The liftgate fees will, in the end, determine the actual cost of shipping the shipment.

A better understanding of the liftgate fees allows you to determine the frequency of the liftgate charges.

This, as a result, enables negotiation, which results in a reduction of the liftgate fee. Additionally, ensure you have an accurate description of the shipment.

This helps solve any disputes of the liftgate fee that may occur.

Lastly, you can involve the third-party logistics who better understand negotiation protopathic will get you the best liftgates fee deal.

Apart From Lift Gate Fee, What Other Tracking Fee Should I Be Aware Of?

We can also refer to this fee as accessorial charges. You must get all the information of any other trucking fee to prevent been caught unawares.

This trucking fee caters to any additional services carriers will render to you apart from the pickup and delivery services.

Below are some of the other trucking fees you should be aware of;

Limited Access Location

Sometimes you will have a shipment to deliver or pick up in a limited access location, making it a liftgate. For instance, a truck that is 53-foot on this location is hassle using a liftgate.

You can arrange for a smaller truck to ship the cargo to your convenient location to cab this event.

Trade Shows And Conventional Centres

Usually, shipping to convectional centres or trade shows can be chaotic. Imagine a convention centre that is overcrowded by trucks?

The hassle will be tedious, and a lot of commotion.

To evade this hassle most trucks, have specific arrival and offloading times.

In other scenarios, the carriers will have a preference on trade shows to use.

Construction Zone Deliveries

Delivering to construction zones can be a little difficult, especially if there is no permanent address location.

For instance, we are delivering shipments in the middle of construction. Let say road construction.

With no specific address, you should ensure you arrive early to find a recipient of the delivery.

Administrative Accessorial

Omissions, errors in the bill of lading, or any changes from the shipper result in additional charges.

Furthermore, it can result in delays in the shipment. With this scenario, an assessment of the accessorial costs will occur.

Some of the most administrative errors that result in accessorial charges include;

  • Freight class to the bill of lading.
  • Inaccurate weight.

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

Contact us now for all shipping from China.

Free Trade Agreement: The Ultimate FAQ Guide

If you’re in the import and export business, probably you have come across the term free trade agreement.

In this guide, I will answer all your questions on free trade agreement (FTA).

So keep reading to learn more.

What Is The Meaning Of FTA (Free Trade Agreement)?

Free trade agreement is a settlement between two or more countries to lessen trade barriers between them.

This protocol allows the trading nations to move goods and services across their borders with less government restrictions, subsidized quotas, tariffs, etc.

Nations that do not have FTA, practice trade protectionism.

How Does A Free Trade Agreement Work?

Free trade agreement can be achieved by either formally signing a mutual agreement or by eliminating trade border barriers.

Most governments choose the “laissez-faire trade” which is French for “leave alone”.

This hand off economic philosophy believes that businesses are better off without government involvement.

Countries with FTA in place do not completely abandon across border trade restrictions.

They still have regulations on imports and exports as well as oversight on FTA.

This has resulted in few FTA being successful.

Countries with FTA still prohibit import of certain drugs, processed food below their standards or endangered animal species.

Some countries will impose tariffs on specific goods to protect domestic products from foreign competition.

What Is The Purpose Of FTAs In International Trade And Economics?

Free trade agreements are mainly to facilitate frictionless trade between member nations by reducing or abolishing trade barriers.

It also encourages diversity, gives access to global markets, lower prices of goods in the domestic country while better utilizing homebased resources.

What Is The Difference Between FTA (Free Trade Agreement) And FTZ (Free Trade Zone)?

FTA is a treaty between countries to reduce or remove tariffs and trade barriers, to ease trade between them.

Free trade zone (FTZ) is an area within or near a port where goods are exempted from tariffs, taxes, re-export payments to encourage global business

How Many Types Of Trade Agreements Are There?

There are three types of trade agreements namely, unilateral, bilateral, and multilateral.

Unilateral Trade Agreement

Unilateral trade agreement is where only one country lessens its border restriction in order to boost economy of another country.

A country may also restrict trade across its border with the other country not reciprocating.

A country only lessens trade restrictions to a country that is less threatening to its economy.

This is done by developed states as a form of foreign aid to help strengthen emerging markets grows their economy.

United states practice unilateral trade agreement as a way of creating new markets for its exporters.

Bilateral Trade Agreement

Unlike unilateral trade agreement, bilateral trade agreement involves two governments that agree to lessen their trade restrictions to their advantage.

The two nations agree to subsidize their tariffs and grant themselves their preferred trade status.

This FTA agreement is always on government protected domestic products such as oil, food producing industries, etc.

One such example was the Transatlantic Trade and Investment Partnership (TTIP) which was between U.S and the EU.

Multilateral Trade Agreement

This is a free trade agreement involving three or more countries and is always very difficult to agree on.

This is because each member country has specific needs and request that want met.

Multilateral trade agreement is advantageous because they cover large geographical area giving member states competitive advantage.

The member states confer a “most-favored-status” thus enjoy the excellent mutual agreement and lowest tariffs.

An example of the largest multilateral trade agreement is the United States-Mexico-Canada Agreement (USMCA) between United States, Mexico and Canada.

This FTA was formerly known as North American Free Trade Agreement (NAFTA).

What Is The History Of International Free Trade Agreements?

Between 16th century and the end of 18th century, nations adopted the Mercantilism doctrine in their trade engagements.

This trade policy encouraged countries to import fewer goods and services and export more to increase their economic value.

It forbade foreign traders from taking part in local trade for instance only British ships could access coastal trade in England.

This doctrine was later shunned by Adam Smith and David Ricardo who promoted trade liberalization in their writing.

In 1823, Reciprocity of Duties Acts was passed and it assisted the British to carry out bilateral trade with other nations.

Corn Law was thereafter repealed in 1850 thereby allowing corn trade.

Come 1995, World Trade Organization was formed to take over from General Agreement on Tariffs and Trade (GTT).

WTO included policies on services, intellectual property, and investments.

To date, WTO is the oversight body that ensures free trade agreement is adhered to.

What Is The Role Of WTO (World Trade Organization) In Free Trade Agreements?

World Trade Organization is a global body mandated with regulation on trade agreements between its member states.

WTO comes when the FTA involves nations from different geographical regions.

It performs three main functions namely; regulates multilateral agreement, control dumping and dispute resolution and oversee ongoing negotiations.

World trade organization ensures that the policies in the trade agreement are implemented and followed by countries involved.

These nations are granted “Most Favored Status” and lower trade tariffs.

Its second primary function is ensuring that countries involved do not export goods at prices lower than their production cost.

This is known as dumping and it puts other countries at a competitive disadvantage for the same products.

Anti-dumping policies and duty are implemented by WTO upon investigating and proving that a member state has been involved in dumping.

WTO will verify these allegations by calculating:

  1. Price of the exported goods in their domestic market
  2. Price of the goods in different countries by the same exporter
  3. Production cost, other expenses and profit margin.

Disputing country needs to verify the normal prices for the exported goods before it can impose anti-dumping tariffs.

WTO’s major role here is to ensure smooth flow of global trade contracts by resolving such disputes.

Thirdly, WTO oversees new and ongoing trade negotiations among member states.

One such instant was the Doha Round Trade Agreement in 2006.

This would have been the largest FTA lowering agricultural and non-agricultural tariffs for its member states.

It however failed since U.S and EU refused to subsidize tariff among many other complex issues.

What Are Some Examples Of Free Trade Areas?

There are various examples of free trade agreements from bilateral to multilateral trade agreements.

NAFTA: This is North American Free Trade Agreement and its member states are; United States, Mexico and Canada.

NAFTA is currently referred to as; United States-Mexico-Canada Agreement (USMCA).

CAFTA: Central America Free Trade Agreement includes Central American States.

EFTA: European Free Trade Association comprises of Norway, Iceland, Switzerland and Liechtenstein.

SAFTA: South Asian Free Trade Agreement include; Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, Maldives and Sri Lanka.

Pacific Alliance: Has Chile, Colombia, Mexico and Peru as its members.

Bilateral trade agreements can be between two countries or two trading blocs such as Australia-China FTA. Others include: EU-Canada FTA, EU-Japanese FTA, US- South Korea FTA, and many more.

Who Benefits The Most From Free Trade Agreements?

Free trade agreements allow two or more countries to import and export goods and services across their borders without tariff barriers.

These less or no restrictions lead to increased trade between member states and net economic growth.

The net economic gain effect may not be felt by everyone, thus there are those who lose.

The beneficially of FTA are:

Exporters

Exporters are able to export their goods easily at a reduced cost due to removal or lessening of trade tariffs and barriers.

As a result, they are able to employ more work forces thus increasing their productivity.

Some exporters venture into specialized production in order to supply global markets.

This results into positive economic gain for the exporting company.

Increased Tax Revenue

When prices of goods are affordable due to trade liberalization, the government realizes economic growth from increased tax collection.

This generally improves society wellbeing in the country since the government has funds to fulfill public services.

Consumers Enjoy Reduce Prices

Since there are no tariffs on exports, it makes imported goods cheaper in the long run.

Consumers are advantaged as they are able to afford imports and still remain with disposable income for other use.

Additionally, domestic monopoly is reduced by the competitive prices making the prices even more cheaper for consumers.

Individual Employees

Exporting firms need workers to be able to export goods to other nations.

They range from drivers, loaders, clearance personnel, etc. Individuals who get these opportunities are direct beneficiaries of trade liberalization.

What Are The Disadvantages Of Free Trade Agreements?

Free trade agreements have not been without disadvantages. Some of them are as listed below:

Uncompetitive Businesses

Governments impose export tariffs on goods in order to protect the same goods which are produced locally though at higher cost.

Eliminating border tariffs makes domestic producers uncompetitive against foreign firms.

This in turn results into reduced demand for domestic products and high demand for imported goods. Eventually such firms go out of business due to unfair competition.

Loss Of Jobs

When local firms are unable to compete against foreign businesses due to price disparity for same products, they eventually close down.

Closing down means job loss for the employees.

Negative Multiplier Effect In The Region

Certain regions have specific industries concentrated in the same area due to free trade agreement. When uncompetitive firms close down and people lose jobs, the region is likely to feel the ripple effect of increased unemployment.

Whereas there is likelihood of increased demand and revenue for the existing firms, keeping up with new demand may be challenging.

How Do Exports And Imports Affect The Use Of Free Trade Agreements?

Exports are good and services sold to foreign countries, government or business and thus bringing money into the country.

Imports are goods and services produced abroad and bought by home country.

Imports take away money from the country hence reducing economic growth.

Imports and exports are part of international trade.

When imports exceed exports value, the resultant effect is trade deficit.

What Are Tariffs in Free Trade Agreements?

Tariffs are taxes charged on imported goods by the government at its border point.

Tariffs serve as revenue collection for government as well as protection for domestic industries and productions from unfair price competition.

There are two types of tariffs; specific tariffs and ad valorem tariffs.

Specific tariffs are charged at a fixed rate depending on the type of goods, for example; USD 30 for electronic items.

An ad-valorem is levied as a percentage on the item’s value, like 10% of car value.

Tariffs can also result into negative effects such as monopolies by companies leading to high consumer prices.

Besides, companies may become inefficient and less innovative with reduced or lack of competition.

Tariffs may also lead to trade wars within a region by rivaling countries that feel frustrated by trade favoritism.

Why Are Tariffs And Trade Barriers Used In International Trade And Do They Affect Free Trade Agreements?

Tariffs and trades barriers are a form of protection enforced by governments to protect domestic industries and production.

They are used by both new and growing economies as well as advanced economies.

Protect Domestic Industries

Tariffs are used by governments to make imported goods more expensive thereby forcing consumers to buy domestic products.

This is because having cheaper imports may push domestic industries to close down leading to job losses.

This increases a country’s unemployment rate making it a political issue than it is an economic issue.

It also affects the economy negatively as domestic firms may threaten to shift their production abroad due to cheaper production costs.

Shield Consumers

A country is likely to introduce tariffs and trade restrictions on goods they feel might harm their citizens. For instance, U.S. can impose tariff on meet from China if they believe it does not meet their health standards.

National Security

Industries of national security interest such as defense-related companies are highly protected by government through tariffs and trade barriers.

Import of such items are strictly controlled by specific arms of government.

Protect Young Industries

Developing countries or emerging markets impose tariffs and trade restriction on goods whose industries they need to grow.

This makes imported goods prices higher than domestic goods thus promoting domestic productions.

Developing economies use this approach as a way of reducing dependency on developed nations and growing their domestic industries,

Critics argue that those infant industries or markets grow without competition hence compromise on their product quality.

Weapon Of Retaliation

Member states use tariffs and trade barriers to retaliate if they feel their partnering country does not abide by trade rules.

For example, China retaliated on United States during Trump administration when he imposed tariffs on Chinese imports.

Is Free Trade Area vs. Customs Union vs. Single Market Any Different?

Yes, they are.

Free Trade Area (FTA)

This is a certain region where group of nations from that specific region sign trade agreement deal to seal their cooperation.

The main aim of FTA is to eliminate tariffs, trade barriers, and import quotas among member countries to allow free trade.

Customs Union

Like free trade area, customs union focuses on abolishing tariffs, trade restrictions, customs duties and quotas between neighboring countries.

This sort of cooperation is defined in the General Agreement on Tariffs and Trade (GATT).

Customs union is the third level of economic integration. Non-member states are required to pay standard external tariffs before trading with members of custom union.

This one-time payment is uniformly applied by member states to non-members.

European Union is one such example.

Single Market

Single market operates differently from FTA and customs union.

In such a scenario, the member state trade freely among them without any restrictions.

Goods here can be sold, distributed and consumed in any of the member states without restrictions.

This also applies to member country citizens, who are allowed to work in any of the member states without restrictions.

What Is Trade Protectionism In Relation To Free Trade Agreements?

Protectionism is a principle which aims to protect domestic industries from unfair foreign trade competition.

It is the direct opposite of free trade agreement and is often politically motivated by governments as a defense mechanism.

Protectionism can be achieved through; tariffs, subsidies, quotas and currency manipulation.

How Does Trade Protectionism Work Without Affecting Free Trade Agreements?

Governments use the following methods to enact their protectionism:

Use Tariffs In Imports

The fastest way of enacting protectionism by a country is through tax imports.

What this does is to raise the cost of imported goods, making domestic goods competitive price wise.

Since consumer are directly affected by tariffs, they naturally shift to local products hence reducing demands on imports.

Subsidies On Local Industries

Subsidy is defined as a grant offered to businesses by governments in order to promote certain activities.

Subsidies can be in form of cash, grants, tax credits or direct payment.

Subsidies usually work to the disadvantage of certain businesses, industries, etc.

Common form of subsidy is the farm subsidies which allow farmers to lower the price of their produce locally.

This also makes them competitive in the global market when they export goods.

This strategy is applied by countries that heavily rely on export for their economic growth.

Currency Manipulation

This form of protectionism involves deliberate lowering of a country’s currency value by accruing huge debts or having fixed exchange rates.

What this method does is to make your exported goods cheaper in the global market making you competitive.

The drawback on this method is retaliation from other countries, resulting to currency war.

Enforce Quota On Imports

Quotas involve restriction on the amount of goods that can be imported within a given period.

Once a country achieves its quota allocation, they can’t export more goods no matter how low the price is.

What Is The Difference Between Comparative And Absolute Advantage In Free Trade Agreements?

Comparative advantage is the ability of a company to produce same products and services than its trading partners.

Absolute advantage is whereby a company or a country can produce more of the same goods and services as another entity.

Absolute company leverages on less inputs or efficient processes than another similar entity to achieve their goal.

How Does Comparative Advantage Relate To Free Trade Agreement?

Comparative advantage leverages on lower opportunity cost in order to achieve higher profit margins. Free trade agreement borrows for the same policy when it eliminates trade barriers and tariffs for trading partners.

They achieve this by encouraging countries to produce goods and services they specialize while maximizing efficiency and output.

The home country in turn imports goods and services that are not their specialty.

Why Isn’t There Complete Free Trade In The World?

It is hard to achieve complete free trade in the world due to “rent seeking” by individual countries.

Rent seeking is whereby countries lobbies for protection from their respective governments for their own interest.

This makes it hard for trading partners to trade fairly with such conditions.

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Full Truckload: The Ultimate FAQ Guide

I know you’re probably wondering what full truckload is.

Or, you would like to learn more about full truckload.

Whichever the case, this guide will answer all your questions about full truckload.

So, keep reading to learn more.

What Is FTL (Full Truckload)?

Full truckload refers to when a single truck is dedicated to hauling a specific type of cargo. It mostly happens in situations when a shipper would like to send to his clients.

A large volume of goods is sufficient to fill up a truckload.

Full truckload is the transportation of foods of a single type using a truck. It is also used in cases where the shipper possesses more than a single type of cargo.

To ship, but it is safe to transport them together.

What Types Of Goods Are Transported By Full Truckload?

Full truckload tends to be suitable for homogenous shipping goods.

However, there might be exceptions, for example, where different goods are shipped together in a full truckload.

This care should be implemented to ensure that they are compatible to be carried in the same container.

In a case where shippers need to transport goods that cannot be mixed with others, FTL is needed. They tend to prefer shipping them in the form of a full truckload.

Goods that are sensitive to temperature variations also tend to be shipped as a full truckload. Breakbulk cargo is another type of good that tends to be transported as a full truckload.

What Are The Advantages Of Shipping Full Truckload?

Some of the advantages of shipping your goods as a full truckload include:

  • When the volume of the goods is more than half or almost reaching a truckload. It is economical and efficient to hire a full container.
  • You will be able to benefit from favorable rates which are offered by transporters of the full truckload.
  • Using a full truckload will enable you to get a single consignment from a shipper. This will help you cut down a lot of costs.
  • Shipments in a full truckload can be packed inside a container according to the specifications that you desire. This will help prevent potential damage while the goods are in transit to your point of delivery.
  • Full truckload tends to be safer in shipping your goods than other types of shipments like LCL shipping.
  • It entails less handling of cargo as cargo is only handled at the loading point and final destination. This also ensures their reduction in the potential cause of damage to your cargo.
  • In full truckload, the operation tends to occur from point to point. There will be no need for stops to offload or load some cargo on the way. This will ensure that your goods reach faster as compared to other shipping methods.

When Should I Use Full Truckload?

You should use full truckload when:

  • You require to ship very many pallets, which are over 12 at a single time.
  • The products you would like to ship are delicate or fragile.
  • You require pickup and delivery appointments by firms.
  • The time needed for delivery of your products is very sensitive.
  • When you require to cut down on shipping costs which are a large amount of freight, a full truckload is cost-effective when shipping goods in large quantities.
  • You require special handling services for your cargo, for example, a flatbed or a refrigerated shipping container.
  • Your cargo is of very high value because a full truckload eliminates the chances of it being stolen.

What Are The Types Of Full Truckload Shipping Services?

Some of the full truckload shipping services include:

Dry Van (Enclosed) Trailer

They are suitable for protecting cargo from elements that are harmful because of weather and road conditions.

Refrigerated (Reefer) Trailer

These are temperature-controlled and are good for the transportation of foods that are cold or frozen.

Due to the additional fuel required to control the temperature, these shipping services tend to be relatively costlier than other available options.

Flatbed Carriers:

These are open bed trailers that are versatile and are mostly used to transport cargo. That is large, for example, construction and manufacturing equipment.

Step Deck Trailer:

These shipping services resemble flatbed carrier designs and are mainly used in freight transportation with very high restrictions.

Removable Gooseneck (RGN) Trailer

It is a popular selection for freight that is long or tall because of its detachable front. It makes it possible to be dropped to the ground to form a ramp.

How Does Less Truckload Differ From Truckload Freight?

LTL differs from truckload freight in the following ways:

Transit Time And Handling

LTL shipping tends to combine shipments from multiple clients so that your freight is not the only one in the truck.

Space and cost will be shared with other company’s freight and will make several stops between different terminals during the shipping.

Truckload freight, on the other hand, entails only your freight on the truck.

The Carrier will only make a pickup at the point of origin, and his only stop will be at the destination point.

Weight And Shipment Size

LTL shipments tend to typically range between one and six pallets weight from 200 to 5000 pounds. Freight in LTL takes up less than 12 linear feet of the trailer.

Truckload freight shipment tends to range between 24 to 30 pallets and above.

Truckload freight ensures that the space your shipment occupies in the truck tends to have more impact than weight.

Therefore, truckload freight commonly tends to range from 5,000 pounds to 45,000 pounds and above.

Pricing

Pricing is the most vivid difference between truckload and LTL.

The pricing for LTL is regulated by National Motor Freight Traffic Association (NMFTA).

It tends to classify freight basing on its density, commodity, and ease of transportation.

LTL carriers tend to have standard pricing rates, which are established by your origin and destination points.

Your freight class will depend on the amount of space occupied in the truck and the accessories required.

Truckload shipping services freight prices, on the other hand, are dependent on the market. The negotiations for the cost happen whenever needed over the phone or through email because there are no pre-established rates.

The truckload freight rates tend to fluctuate even at times by the week, day, or even hour. Some of the factors that result in changes in pricing include; weight, truck capacity, location, origin and destination points, shipping lane or route, and fuel costs of operation.

Reefer Availability

LTL refrigerated shipments tend to be more difficult to secure and get than dry van LTL shipments. Lanes and temperatures determine most carriers for LTL freight.

In truckload freight, the reefer trailers and containers are readily available, and the temperature can range from o to 70 degrees. Your shipment can move on whichever schedule and temperature that you desire.

Are There Similarities Between Less Truckload and Full Truckload?

Some of the similarities between LTL and FTL shipping:

  • They both transport freight over the road. However, some LTL carriers tend to make use of rail shipping in the movement of your freight.
  • Both make use of semi-trucks.
  • They need drivers who are well qualified and possess a commercial driver’s license.
  • LTL and FTL are shipping both ship freight that is palletized.

What Is The Maximum Full Truckload Capacity?

The maximum full truckload capacity commonly ranges between 5,000 pounds to 45,000 pounds and above.

How Many Pallets Can You Ship In Full Truckload?

A full truckload can ship pallets ranging between 24 to 3o and above.

Can I Optimize My LTL Shipments Into Full Truckload Shipment? How?

Yes, you can optimize your LTL shipments into full truckloads to reduce transportation costs and improve truck usage.

Optimization will also help you to reduce the number of deliveries, empty mileage, and damage risk.

Some of how you can optimize full truckloads include:

  • First, you will need to split up large volumes from a supplier to a producer into FTLs. When this step is carried out effectively, the transportation costs will be reduced.There will be extra space in the truck.A reduced number of deliveries and a reduced risk of cargo damage.
  • The second step will be giving full truckload resources to reduce the time or empty mileage from one delivery location.That is to the following location for loading.This will ensure the satisfaction of all provided requirements.

What Are The Benefits Of Optimizing Less Than Truckloads To A Full Truckload?

Optimizing less than truckloads to a full truckload makes it possible to achieve results that are beneficial and optimal and reduces:

  • The risk of management is due to shipping little air in the truck.
  • Costs of transporting your cargo.
  • The number of your deliveries
  • Empty mileage
  • Less C02 emissions thus reduce the impact on the environment.

Do Full Truckload Drivers Load Freight?

No, FTL drivers do not load freight onto the truck. In full truckload, the transport operator tends to load the cargo at the point of origin and seal the truck.

The FTL drivers are obliged to transport your freight from the point of origin to the destination point.

Which Factors Affect The Cost Of Full Truckload Freight Shipping?

Some of the factors which affect the cost of FTL freight shipping include:

  1. The availability of the trucking lane
  2. Lead time
  3. Mileage
  4. Fuel costs
  5. Seasonality
  6. Type of truck or trailer that you need

Which Accessorial Charges Are Common With Full Truckload Shipping?

In full truckload, you mostly have the attention undivided by a driver throughout the entire shipping process.

Full truckload carriers are a little bit more considerate with accessorial charges.

The accessorial charges tend to be about 15 minutes of detention or driver assistance in transit, which will last three days.

Can I Negotiate Full Truckload Shipping Costs?

Yes, you can negotiate shipping costs for a full truckload with your service provider.

This is because the truck will entirely transport your cargo, and FTL will help reduce transportation costs. The volume of your products can fill it up.

How Can I Avoid Surcharges And Accessorial Costs In Full Truckload Freight Shipping?

FTL freight shipping may be simple and a positive experience, but at times. It may result in shippers making small errors which may cost them.

When you give shipment information that is inaccurate or uncertain, you may be surprised by accessorial charges to your freight.

Potential fuel surcharges tend to affect the cost of FTL freight shipping.

Since the market price of fuel tends to influence this variable, logistics carriers tend to increase or lower.

It is regularly based on the average price of fuel.

You can avoid surcharges and accessorial costs in FTL freight by following some simple steps, which include:

  • Prepare your shipment on time: Due to the restricted hours of service for drivers, there is reduced time for waiting on shipping.Therefore, you should ensure that your cargo is packed and fully prepared on the scheduled pickup date and time.This will not only ensure that you save on your budget.But also strengthen your relationship with all the third parties in the logistics process.
  • Be aware of additional services: Most of the time, surcharges and accessorial costs tend to be imposed for additional services.There are a lot of extra services which carriers can offer. If you do not control them and they will charge you later.These include limited access delivery, liftgate service, hazardous material shipping, inside delivery, and others.Therefore, if you need cargo delivered or picked to a remote location or require loading equipment.This ensures that you discuss with the Carrier earlier.
  • Provide accurate information: To avoid surcharges and accessorial costs. It is important to give the correct information about your shipment.Ensure that you give accurate weight, dimensions, and other load characteristics of your cargo that may affect your final shipment.It is also important to ensure that you provide an accurate address and giving many delivery details as possible.

What Are The Key Considerations When Choosing A Full Truckload Shipping Company?

Some of the key considerations when choosing a truckload shipping company include:

  • Total mileage: The distance that shipments cover is an important consideration when selecting a truckload shipping company.Truckload shipping companies tend to charge more for longer distances due to increased fuel usage and travel time.
  • Trucking lanes: Trucking lanes used by the shipping company will affect the total costs you will have to incur when selecting truckload shipping companies.It is essential to select companies that ship products in your origin and destination routes to ensure convenience.
  • Customer service history and proof of reliability: It is important to know what the customers are saying about the truckload shipping company before engaging them in business.They should also demonstrate that they will be able to deliver your cargo promptly.
  • Technological advancement and utilization: Selecting truckload shipping companies that have embraced technological advancement and strive to deliver efficient services. A good truckload shipping company will tend to use technology to cut down the operation costs.

Are My Shipments Insured When Shipping Full Truckload?

Yes, full truckload shipping makes it possible for you to have insurance options to ensure the safety of your cargo while it is being shipped.

It is important to ensure that anything can happen to your cargo while on the road; thus, it is important to secure it with the necessary precautions.

What Are The Policies For Shipping Valuable Goods Via Full Truckload?

When shipping valuable goods using FTL, here are some of the policies which you should observe:

  • Protect all cargo: It is important to ensure that you use the correct packaging to make sure that the valuable goods arrive in the right condition.This is essential because in case of damage while the valuable goods are in transit.It may result in the incurrence of void carrier liability coverage.
  • Prepare for loading and unloading: Packing valuable goods in the full truckload tends to be the shipper’s responsibility.Ensure that you plan the layout of your load and coordinate between the point of origin and destination.
  • Give accurate information: It is important to state the exact rates and transit times needed for your valuable goods.To make it easy to plan for your shipment.You should provide the correct information on the sizes, dimensions, and weight of your freight, as this will ensure efficient delivery.

What Are The Timelines In Full Truckload Shipping?

The transit times in full truckload are very fast as your shipment goes straight to your drop-off destination.

It also makes it easy and meaningful to track the driver.

As they will arrive within the estimated arrival time stated in your Transport Management System (TMS).

Full truckload ensures that no delays are resulting from multiple stops along the way to your destination.

When using full truckload shipping, it is important to state clearly the timelines that you need your shipment to arrive.

Do Full Truckload Carriers Offer Expedited Shipping?

Yes, full truckload carriers do offer expedited shipping to ensure they help you accomplish your goal.

There is always a tremendous amount of lead-time in cases of shipment, which is critical.

In such cases, expedited shipping will let you know what you are dealing with as soon as possible.

This will give you a chance to make proper arrangements to ensure that your shipment arrives in the appropriate manner and time.

Full truckload carriers will help in the delivery of your goods at the last minute.

Where you have a delivery of high profile that needs to be delivered within a short timeline, expedited shipping is offered. A full truckload carrier will offer you a helping hand.

How Does Full Truck Load Compare To FCL?

Full container load (FCL) refers to when you purchase the entire space inside a container.

FCL is very important for sizeable and large volume shipments, and most companies select it.

Full truckload (FTL) requires the entire space to fulfill your shipment, and the cargo will entirely consist of your goods.

FTL gives you a very great level of control over the entire shipment process.

As the truck is entirely dedicated to you and the driver only makes necessary stops.

FTL is a faster process in which you will encounter very few problems throughout the entire process.

What Are The Drawbacks Of Full Truckload Shipping?

FTL shipping has very few drawbacks, some of which include:

  • While you can fill a full truckload shipment primarily, at the time, you cannot manage.In such cases, you will have to incur a greater average price based on the total cost of each item delivered.
  • You will be required to agree to delivery schedules that are fixed and determine by the Carrier of your cargo.This is because drivers tend to go in one route, and thus you must fit with their delivery schedule.

At Tj chinafreight, we will help you in all shipping from China.

For any inquiries about full truckload shipping, contact us now.