Cargo Insurance – A Simple Guide

“Cargo Insurance – A Simple Guide
What is cargo insurance?
Marine cargo insurance is the most common method used to protect the value of your cargo from physical damage, theft or general average. Cargo insurance is not always automatically included with all shipments – this usually varies by region. Instead, shippers or consignees can purchase policies for the insurance marketplace from niche suppliers, large brokers, local agents, websites, and freight forwarders.

I often compare cargo insurance to auto insurance. You need to pay insurance premiums for your car due to accidents and theft. You simply can’t always plan for or avoid these types of things. You’re still willing to put a lid on your car, even after years without problems. After all, getting only the most basic coverage could cost you a lot of money in the event of an accident.
This is exactly the same principle as cargo insurance. By choosing to pay a fraction of the value of your item, you can protect yourself the day the unexpected happens.
Is Cargo Insurance a Necessity?
No need to purchase cargo insurance. However, this is highly recommended so you can better protect your cargo from risks – some which can be catastrophic. It is important to weigh the cost of insurance against the potential loss and collateral damage that can occur without insurance.
Remember, even if you prove that the ocean carrier is legally responsible, their limit of liability is $500.00 per package or customary shipping unit, or the actual value of the shipment, whichever is lower. Air carriers only pay 19 SDR (~$24.00) per kilo. As you can imagine, most shipping costs are worth much more than these rates. So without proper insurance, you could lose most of your cargo value
Depending on your requirements, there are different types of cargo insurance and policy types available to cover your cargo.

Here are some points to consider before you purchase cargo insurance.
1) Understand the goods
It is essential to understand the nature of the insured goods, including how the goods are packaged. Ask “”What’s going to go wrong with this shipment?””
Packaging is critical as it is what protects the cargo during the voyage. Is the packaging the normal packaging for this cargo for the intended voyage? Is the packaging sufficient to avoid damage to the goods?

Make sure the package is marked so that it can be identified. This is important for shipments sent by air or LCL/LCL shipments. If the item is a branded item, please do not put the brand name on the package as this will only be an incentive for theft.
2) Know the voyage
This involves more than just knowing which port the cargo will be shipped from to which port. What climatic conditions are expected to have an impact on the condition of the cargo? Are there any political circumstances that could affect the safe delivery and/or payment of goods? Does sailing require sailing near any pirate hotspots?
3) Terms of Goods

As far as the actual insurance of the cargo is concerned, there are three different levels of insurance available for general cargo. These terms are published by the Lloyd’s Market Association (LMA) and the London International Underwriting Association (IUA).
There are also specific terms for various industries, such as frozen meat, frozen produce, wood, coal, oil, and more. Airfreight has its own terms, Institute Cargo Clauses Air (excluding postage).
Types of Cargo Insurance
When discussing the most common types of insurance, we will focus on ocean cargo insurance, which usually covers air freight as well. Note, however, that specialized air freight insurance can also be purchased.

Marine cargo insurance offers different levels of coverage. You will need to decide which type of insurance is best for your business, your cargo, and the severity of the risks involved in shipping. Again, if you know a little bit about each option, it will be an easier decision to make.
The first decision will be whether to buy single or open coverage.
Single coverage:
This type of insurance is purchased on a per shipment basis. It only covers single shipments and is usually the best option for businesses that do not frequently ship internationally. However, if your company ships frequently, it may not be cost-effective to make insurance arrangements for each shipment.
Open coverage:

This is a cargo insurance product that covers cargo for a specific period (usually one year). You can cover all your cargo movements under the same policy, which is a more efficient way to manage your risk if you ship frequently.
After deciding whether you will buy an insurance policy for single or open coverage, you will need to consider the level of coverage you need. A full policy guide would require a longer article than this one, so we’ll focus on the most common types of cargo insurance.
All risk:
As the name suggests, all-risk coverage applies to both air and ocean cargo insurance, providing financial protection in the event of most events that result in damage or loss of cargo. You should be able to purchase all-risk coverage for most types of goods, as long as they are new and not inherently susceptible to breakage, deterioration or loss.
However, even all-risk coverage usually has some exceptions, such as:
• Importer/Exporter Negligence
• Customs refusal or delay
• Loss or damage caused by war, strike, disturbance or civil commotion (WSRCC)
• Damage or loss due to force majeure (eg earthquake)
• Customer fails to pay, or seller fails to collect
Name the Dangerous Cover:
In contrast to full coverage, named risk coverage is limited to the risks expressly specified in the policy. Therefore, this type of insurance is less comprehensive. Its main benefit is that you can arrange coverage for risks not covered by an all-risk policy.
Dangers of naming include:
• Cargo theft
• natural disasters
• bad weather
• Collision at sea or sinking of ship
• Undelivered goods
General average and its meaning:
If you usually ship by sea, the general average principle in sea freight is an issue to keep in mind. As counterintuitive as it may seem, you should consider this as part of your cargo insurance strategy.
This principle states that if part of the cargo is lost, abandoned, destroyed or damaged due to a problem at sea, the owners of all the cargo on board must share the cost of compensation for the loss. Therefore, even if your cargo survives an accident, you are responsible for making compensation for the person whose cargo was lost.
Cargo Insurance: Is It Worth It?
Unless you are contractually obligated to insure, you are free to accept shipping risks and the minimum insurance provided by the carrier, or protect your interests with cargo insurance.
We recommend that you purchase the insurance that suits your situation. After all, cargo theft is not uncommon on a global scale, and incidents at sea or in flight, while rare, do happen – and when they do, they can cause huge financial losses.
Even if your business is not a risk owner in an international sales transaction, keep in mind that the responsible party may not have insurance, or the goods may be under-insured. So, as a contingency, it makes good business sense to purchase additional insurance on your own.
TJ chinafreight is an online freight forwarding platform that helps SMEs to ship their goods worldwide. We are happy to advise on the appropriate type and insurance level for your shipment. To answer your questions, please contact us by phone, email or via our live customer service chat feature.”

What is Warehousing, Logistics Guide

“What is Warehousing, Logistics Guide
What is warehousing?
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are used by all different types of businesses that need to temporarily store products in bulk before shipping them to other locations or individually to end consumers.
Elements of Warehousing
While warehousing may seem simple as it primarily involves leaving product in storage, there are many processes involved to ensure efficient completion and quick access to and from inventory, including:
capacity planning

Space is a key resource. Therefore, when products are expected to be shipped, employees need to plan where the products will be stored to make the most efficient use of the space.
Receive inbound goods
When products arrive at the warehouse, workers need to receive the items and carefully move them to the staging area for processing.
track inventory
As items move in and out of the warehouse, registration in the warehouse inventory management system is required to ensure administrators can track what is currently in inventory and plan for future changes.
store product

Once the product has been received and processed, it needs to be stored. This may involve placing products in boxes and pallets and then using mobile devices to transport them to the appropriate storage space.
climate control
Depending on the nature of the product, factors such as temperature, humidity or pressure may need to be kept constant. For example, frozen goods need to be stored in areas with temperatures below freezing. These requirements will affect how and where products are stored within the facility to ensure proper quality.
reorganization

As new products are introduced, existing inventory may need to be moved to ensure the most efficient use of the entire space. Any changes need to be tracked and updated in the inventory management system.
Pickup and Shipment
Finally, when products need to be shipped out, employees need to pick, handle, pack, load, and then release them from inventory to make room for new inbound products.
Best Warehousing Options to Consider
Fulfillment companies have many responsibilities, from design to picking and packing to final shipping. Ideally, you’d want to handle all of these tasks under one roof, but that’s rarely the case. You may need to survey the playing field and place your work in multiple locations.
Here are the best places to perform the order fulfillment process:
private warehouse

This particular distribution center is usually owned and managed by the channel supplier. This will be your manufacturer, trader or whoever is the first to resell on exclusive distribution channels. Some notable examples of private repositories include:
Warehouses owned and managed by wholesalers and retailers
Warehouses rented out by retailers
Warehouse located near farmers farmland
Warehouse built by the manufacturer’s production unit
Warehouses owned or leased by wholesalers
public warehouse
Public warehouses are government-owned distribution facilities. These warehouses are usually leased to small traders who do not have the financial means to own a warehouse. If you’re working on a short-term delivery project, one of these government warehouses may be your best option. Most public storage space is used by manufacturers, producers, exporters and importers associated with the franchise.
Bonded Storage Center
It’s the perfect mix of private and public warehouse space. Bonded storage centers are owned, managed and controlled by private and government agencies. These storage facilities are best for importing goods when import duties have to be paid. When you need to handle global shipments, you will most likely do business through a bonded warehouse. These warehouses are usually located near the port and are usually owned by the terminal authority.
Cooperative warehouse
This is your most economical type of storage system. Cooperative warehouses are managed by cooperatives organized voluntarily. Co-op organizations don’t make a profit, so they don’t charge high distribution rents.
distribution facility
These facilities are nearly twice the size of traditional warehouses and large enough to accommodate multiple supply chain operations simultaneously. These centers provide computer control to make the movement of goods fast, reliable and easy. Goods are delivered to the processing facility on the morning of the operation and then quickly transferred to a nearby distribution center. This is the best place to do business when there are large, urgent quantities of perishables that need to be shipped.
Warehouse and Distribution Center
While a warehouse is technically any building used to store physical products, regardless of its purpose, a distribution center is more specifically a warehouse designed to fulfill orders for distribution to other businesses or consumers. Therefore, the design of distribution centers requires not only compact storage, but also efficient picking, packing, and shipping.
Warehousing FAQs:
Why does warehousing exist in the supply chain?
Warehousing is a necessary step in the supply chain to ensure that inventory is ready when an order is received and is ready for packaging and shipping. Some manufacturers offer drop shipping services, but shipping from a single manufacturing facility increases shipping time and increases last-mile shipping costs.
What are the four functions of warehousing?
Warehouses are used to receive and store inventory; pick, pack, and ship orders; send tracking information; and maintain accurate inventory counts.
What is the main function of the warehouse?
The main function of a warehouse is to store inventory based on product demand (cold storage, humidity control, bulky, bulky, etc.) and maintain accurate inventory counts to reduce the chance of shrinking or obsolete inventory.”

Rail Transport vs Road Transport

“Rail Transport vs Road Transport
Shipping method
One of the oldest and most popular forms of transportation has always been ground transportation. Since ancient times, all trade, as well as the world economy, has relied on freight systems that move goods from one place to another, supporting a culture of commerce as the core conduit of human society, something the modern world has become accustomed to.


Road transport
By far the most common mode of transport for goods transport is road transport. Road transport facilitates the continuous delivery of daily necessities such as daily necessities, flowers, fruit and dry goods to markets and destinations in various countries and continents.
As the saying goes, “”If you get it, the trucker will bring it!”” The distribution and distribution of retail and other forms of goods between DCs (distribution centers) relies heavily on road freight systems.
Rail transport
Rail transport is also known as train transport. It is a means of transportation, on a vehicle running on a track (rail or railroad). It is one of the most important, common and cost-effective ways of commuting and transporting goods over long and short distances. Because the system runs on metal (usually steel) rails and wheels, it has the inherent advantage of less frictional resistance, helping to attach more loads to a wagon or wagon. This system is called a train. Typically, trains are powered by engine locomotives that run on electricity or diesel. If there are multiple routing networks, complex signaling systems are used. Rail transport is also one of the fastest land transport methods.
Advantages of road transport
The only shipping method that can deliver to your door
Extensive road network enables fixed delivery days, next day delivery
Not bound by timetables and routes. Ready to operate, easily adaptable to specific route or cargo requirements


The rapid movement of goods, especially perishable goods, over short distances
Cheaper than air and sea. Extremely low packaging requirements for greater cost savings
Not capital intensive. Roads are relatively inexpensive to construct, operate and maintain. Trucks and trailers are cheaper than ships, planes and trains
Serving the most remote regions of the world and facilitating trade in landlocked countries
An important part of air, sea and rail freight transport
shortcoming
High accident risk makes road transport less safe than air, sea, rail and other modes of transport
Not suitable for long distances and bulky cargo
Unreliable when roads are flooded, damaged during the rainy season
Traffic delays, breakdowns affect delivery times
High tolls and road taxes in some countries
Poor road maintenance is a big problem
Road transport costs are highly sensitive to fuel price fluctuations

Advantages of rail transport
Cheaper than road transport. In India, the cost of transporting goods by rail is Rs 1.41 per ton-kilometer while the cost of transporting goods by road is Rs 2.58 per ton-kilometer
Trains are more energy efficient than trucks and have a smaller carbon footprint. According to Indian Railways, rail transport emits 28 grams of carbon dioxide equivalent per ton-kilometre, while road transport emits 64 grams of carbon dioxide equivalent (CO2 equivalent is a measure of relative global warming potential)
Trains cover great distances in a short time
Due to the large volume and less packaging requirements, the cargo is easy to load and unload
Reduce the risk of cargo damage during transport
Better safety record. Road accidents in freight transport cost eight times as much as train accidents
Weather conditions have little effect on rail transport
shortcoming
Not a universal cargo transport solution like a truck. Rail transport is mainly used for large quantities of goods over long distances
Longer transit times preclude time-sensitive shipments
India’s rail network, though vast, is oversaturated
In most countries, the rail network is not as wide as the road network. In India, many container ports are not connected to rail lines
Trains are not as reliable as trucks, especially in India
Rail transport lacks the flexibility of road transport
Despite these advantages and disadvantages, the two modes of transportation can be combined to provide customers with a multimodal (or intermodal) mode of transportation, which together provide a road/rail combination that provides customers with a seamless Door-to-door shipping options.”

9 Factors That Affect Shipping Rates

“9 Factors That Affect Shipping Rates
If your business involves inventory – whether you’re a wholesaler, manufacturer or retailer – shipping is one of the key costs of doing business. Shipping costs are often highly uncertain; merchants may not know how much the shipment will cost until the carrier issues an invoice a few weeks later. Although shipping rates are often indeterminate, they are not a complete mystery. Like most expenditures, they depend on a range of economic circumstances. Let’s see how to define shipping costs
Shipping is the price of certain goods being shipped from one location to another. The price depends on the form of the goods, the mode of transport (truck, ship, train, plane), the weight of the goods and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight to calculate prices, which takes into account both the weight and volume of the cargo.

1. Fuel cost
All types of courier services rely on fuel to get your package from point A to point B. That’s why increases and volatility in fuel prices can be the number one factor affecting freight rates.
Once fuel prices drop, the cost of operating planes, container ships and trucks will drop. This will ultimately minimize shipping costs. Conversely, increased fuel costs mean higher transportation costs.
2. The weight and density of the cargo
Weight and density affect freight class, which in turn affects freight costs. The larger and denser the package, the more space is required for shipping. Whether it’s land, air or sea, the more space and labor required to transport your goods, the more you pay. To keep costs down, make sure to use high-quality, lightweight packaging and work with the shipper of your choice. Shippers who provide superior customer service and efficiency to their shipping partners typically receive higher rates and recurring business opportunities from the carrier.
3. Distance
The origin and destination of the goods can also affect shipping costs.
If you ship by sea, please note that different disembarkation ports charge different rates. When sending goods internationally by air, you should be informed that exchange rates between different countries may result in different shipping costs.

It’s also important to know that the further a package travels to its intended delivery point, the more expensive it will be to ship. For example, it is much cheaper to ship goods across the country than to ship them abroad.
4. Freight demand
Pricing depends on the number of products the carrier ships, just as it depends on the actual underlying cost. If capacity is limited, operators may be inclined to sell the limited space at a premium. On the other hand, if business is slow, carriers may be persuaded to offer more competitive prices, at least in the short term.
5. Customer Loyalty
Merchants who can provide regular, consistent business to their carriers can easily get good prices, especially when demand is low across the industry.
6. Season
Seasonal trends have a huge impact on freight costs. Higher requirements bring higher costs. When shipping becomes a priority, rates naturally increase. To avoid overrunning your shipping budget, supply chain companies must forecast data from previous years as accurately as possible. Building a relationship with your freight provider or using a trusted 3PL to manage shipping rates will help maintain your budget when the market fluctuates.
7. Customs and duties
When you service and ship packages to international customers on a regular basis, you face many strict customs regulations. This requires you to pay additional fees that vary by country.
Consumers often incur these additional shipping costs, which may come as a surprise to them. However, as a business owner, it is important to include this type of information in your shipping policy. You should correctly explain that these hidden costs are beyond your control and you will not earn commissions from them.

8. Geopolitical events
In addition to tariffs and duties, international shipping costs can also be affected by a range of geopolitical events.
For example, businesses that primarily use ocean shipping have been suffering huge losses from global piracy. With growing concerns about pirates and rogue governments, couriers are forced to travel longer routes and pay expensive insurance premiums. This ultimately leads to high shipping costs.
9. Your reputation as a businessman
The carrier’s quotation will reflect, at least in part, the carrier’s expectations for pallet packing and loading times. If you are known for fast loading, you may be charged slightly less to compensate.”

9 things you need to consider when choosing a freight forwarder

“9 things you need to consider when choosing a freight forwarder
Do you know how to choose the best freight forwarding company? Freight forwarding companies are responsible for transporting goods from one country to another. They provide warehousing, logistical support and transportation for domestic and international freight.
You know that shipping is important to every business, but you may not be familiar with how to choose a freight forwarder or company. Now you can understand the factors that influence your choice. Here are some things to consider: do they have regular shipments, what kind of services the company offers and how far their office is from your location, can they handle all types of shipments, are there any hidden fees or other fees use them etc. Every business has different needs, so make sure you find the right freight forwarder for you!
Choosing a freight forwarding company is not easy. There are many things to consider before making a decision. This article will help you identify the best freight forwarder for your business needs. Check them out below

1. Certifications and Certificates
First, you should check that the company you are considering hiring is properly certified. Needless to say, working with an uncertified company is not a good idea. Checking a potential candidate’s credentials will help you see if a particular freight forwarder has the appropriate skills and qualifications for your shipping needs. Also, this way you can see if they have the necessary training and compliance with safety requirements. Therefore, you will entrust your product to the best and most qualified company.
2. Important Services
Before narrowing your search for a freight forwarder, first determine what services your business needs. If your forwarder lacks certain competencies, even those you use occasionally, you may need to hire another specialist, which introduces additional complexity, reduced efficiency and additional costs.
Depending on what you’re shipping, your supplier should at least be able to:
Rail
Prepare import and export documents
Packaging and storing products
Manage inventory
reserved space
clear custom
Negotiated shipping
Provide quality insurance

Start a conversation with your freight forwarder about other services you may need. While you may not need to provide these specialized services for every shipment, it is best to have a partner who can provide flexibility. The more complex your supply chain, the more you need a partner with whom you can align.
3. Fame
Reputation is another rather important factor that you should keep in mind. Hiring an experienced but notorious freight forwarder will do you no good. If their previous clients complained about their service, chances are you’ll find yourself in a similar situation shortly after hiring a company like this. On the other hand, if people are generally satisfied with the services provided by a particular freight forwarder, you may be satisfied with those services as well.
Don’t worry if you don’t know how to check their reputation. It’s not hard to do this. All you have to do is talk directly to some of their previous clients, or read some online reviews and reviews that these people may have written. Either of these steps will help you determine their reputation, and if possible, it’s best to take both steps at the same time. However, if that’s not an option, you should be able to get what you need by just taking the second step and reading online reviews.
4. Product Track Record
Some freight forwarders specialize in transporting one type of cargo, while others are capable of transporting multiple types of cargo. Ask your potential forwarder up front if they specialize in certain commodities and shipping methods. If you have very specialized shipping needs, working with a company that has a consistent track record of shipping goods similar to your own can build confidence. Certain products, such as flammable liquids, toxics, drugs, alcohol, batteries and perishables, often require a professional freight forwarder.

If you ship a variety of goods that are not subject to strict regulations, it may be easier and more cost-effective to hire a freight forwarder with broader freight experience. Either way, a good freight forwarder will find and recommend the best shipping company for your needs, whether your cargo is restricted or not.
5. Delivery time
No matter what you’re selling, you probably want the company you hire to deliver those items to your customers fairly quickly. Since we’re talking about international shipping here, you need to be patient and reasonable with actual delivery times, and so will your customers. Still, that doesn’t mean you should keep people waiting long, which is why you should talk about those delivery time frames up front.
Timely pickup and delivery is extremely important for every business that ships its products. So, don’t forget to discuss delivery times with potential freight forwarders and make sure they deliver on time and deliver your shipments on time. Most importantly, it’s pretty important to talk about this before doing any hiring, which is why you should never skip this step.
6. Timely communication
Your freight forwarder should let you know exactly when your shipment will arrive so you can plan accordingly. Although international shipping will never be as predictable as domestic overnight delivery, a good freight forwarder will choose a reliable partner to ensure that the logistics are on schedule.
Remember that freight forwarders are not responsible for unforeseen delays such as severe weather, route changes, mechanical failures, dockworker strikes and foreign port closures. Disruptions are never welcome, but the best freight forwarders alert you quickly and do their best to fix the problem.
7. Volume capacity
Of course, if you want to feel all the benefits of using a freight forwarding service, you have to consider another rather important factor, such as what you can read here. What I’m saying is that you need to find a company that can handle a specific volume of goods and shipments. Now, this amount depends on the actual size of your business and the number of international freight assignments you actually have. However, the point is that you need to check this ahead of time, lest you find out later that you can’t meet your client’s requirements.
8. Industry expertise and experience
Experience is the number one factor in building trust between freight forwarders and customers. Starting a freight forwarding company is easy at first, but working in the shipping business and on an international level is not everyone’s cup of tea. For this, one must have a solid understanding of everything that is involved in the field, and the knowledge can only be acquired by working in the industry for a long period of time.
9. Customer Service
A freight forwarder with excellent customer service will provide you with the support you need to expand internationally. This is especially important if this is your first foray into overseas markets.
in conclusion
If you are looking for a freight forwarder to transport your cargo from point A to point B, it is important to do some research and consider all factors before making a decision. Once you understand what kind of services they can offer, how often they make shipments, or if they can handle any type of merchandise, as we know not everyone has a specific item they need to ship; then it’s time to take a look at their location. Is their office nearby? How far are other offices around the world? You should also ask each company these three questions when contacting.”

Factors to consider when choosing the most suitable shipping method

“Factors to consider when choosing the most suitable shipping method
There are many aspects to consider when choosing a shipping method for your import or export shipments. Depending on the destination, goods destined for foreign markets can be transported by road, rail, air, sea, inland, water, or a combination of any of these.

Industrial technology concept.

A little thought about contracted shipping equipment and shipping methods can reduce shipping and logistics costs. However, import and export planning is not always as simple as choosing the most cost-effective option. When choosing which shipping method to use, the following factors should be considered:
1. Service cost:
Shipping costs add to the cost of the goods, so this should always be kept in mind. Rail transport is a relatively inexpensive mode of transport for transporting heavy and bulky traffic over long distances. Car transport is best for transporting small traffic over short distances and is the most economical. Auto shipping saves on packaging and handling costs.

Woman sit on couch screaming with joy opens carton box feel happy, addressee girl received long-awaited package, fast easy and quick post mail parcel delivery, reliable postal courier service concept

Water transportation is the cheapest mode of transportation. It is suitable for transporting heavy and bulky goods over long distances only when time is not an important factor. Air freight is the most expensive shipping method, but is especially suitable for transporting perishable, light and valuable goods that require fast delivery.
2. Shipping speed:
Air shipping is the fastest shipping method, but also the most expensive. Short-distance car transport is faster than rail. However, rail is faster for long distances than other modes of transport than air and is best for long distances. Water transport is very slow, so it is not suitable where time is an important factor.

Red Lorry on M1 motorway in motion near London

3. The possibility of damage to the goods
Key factors affecting the likelihood of cargo damage include motion and acceleration forces. Freight containers are subject to the greatest acceleration forces during loading and unloading at terminals or warehouses and during transshipment at rail yards.
At sea, roll and pitch tend to produce steady acceleration forces. In contrast, rail and road modes tend to generate irregular acceleration forces, such as when braking, cornering, starting the engine, lifting and lowering, and when trains pass railroad switches.
A New Zealand study calculated that vertical acceleration levels in excess of 10m/s2 would generate enough force to lift a container off the ground, potentially causing significant damage to the cargo inside upon landing.
4. Product Features
The size and weight of the cargo also play a role in deciding which shipping method to use. Land and air freight are mainly suitable for light and small cargo, while rail and sea freight are suitable for heavy cargo. The shipping method chosen to use will also depend on the hazard, fragility or high value of the product. Air and ground shipments are often the best options for high-value fragile products.
5. Safety
The safety and security of goods in transit also affects which mode of transport is used. Trucking overland may be more popular than rail because your losses are usually smaller. Shipping by water exposes cargo to dangers at sea; therefore, from a safety point of view, sea transport is the most dangerous. Additionally, to protect the goods in transit, certain types of packaging are recommended, which may affect costs. The cargo may also require special facilities, such as refrigeration or special security measures that need to be considered.

Transportation and logistics of Container Cargo ship and Cargo plane. 3d rendering and illustration.

6. Reliability and regularity of services
The reliability and regularity of the modes of transport vary. Your decision on which shipping method to use will be influenced by the urgency and speed with which you want your shipment to be delivered. Land, sea and air shipments are often affected by severe weather such as heavy rain, snow, fog and storms, which can cause delays.
7. Other notes:
Many special services such as warehousing, packing, loading and unloading are also taken into consideration when deciding on the mode of transport. It is clear from the above discussion that each mode of transportation is suitable for a specific type of traffic.
Rail transport is particularly suitable for transporting heavy and bulky goods over long distances. Auto transport is suitable for transporting small items over short distances. Air freight is suitable for lightweight valuables that require fast delivery. Ocean freight is suitable for transporting bulky goods over long distances at the cheapest possible cost.
In addition to the above factors, the type of goods that need to be transported will also affect the choice of shipping method. When trying to solve the problem of frequently damaged goods in transit, it may be time to consider another shipping method. Another manageable factor in reducing product damage, costs and personal injury is inspection and possible changes to the way cargo is handled and loaded into containers.”

Which shipping method is suitable for import and export business?

“Which shipping method is suitable for import and export business?
As you know, the mode of transportation is an integral part of your business, whether in domestic or international trade, without it, you cannot ship your goods anywhere in the world. So it plans how to import and export your product across national or international borders before shipping it is much needed.

If you are considering the shipping method for shipping the goods by:
Rail transport,
Road transport,
Air freight,
Sea freight
In particular, the mode of transportation depends on the contract specified between the exporter and the importer. The best way to ship for export and import depends on a number of factors, such as weight, value, size and the various types of goods to be transported. Shipping always determines the source and destination, and according to the country’s rules and regulations, the law also matters. The type of cargo is also important, if you have complex cargo to export, in this case you need to pay attention to the type of transport you choose. Otherwise your shipments may be damaged, which could cause huge losses to your business.
Shipping method
Rail Transport

Rail transport is a cost-effective way to transport goods. It plays an important role in the country’s regional trade and commercial activities. It can transport relatively large quantities of goods from medium to long distances, and other advantages include low transport costs, environmental friendliness and more reliability than road transport. Most of the goods transported by rail include bulk goods such as coal, iron ore, cement, fertilizers, raw materials for steel mills, finished steel and oil. In remote areas, routes and times are inflexible. There are parts of the globe that have proper rail systems, which is a huge setback for remote areas.
Road Transport
Road transport is more flexible than any other mode of transport. Tracking shipments is easy, shipments are safe and private, shipping is arranged and associated costs are paid. It includes the ability to deliver goods from door to door with a high degree of flexibility without further transshipment. Connecting vehicles and crossing borders is fast and efficient.
There are also many risks associated with road transport, such as long-distance cargo deliveries taking more time due to traffic delays and breakdowns. In some countries, there is a risk of damage to the goods and tolls are high.
Air freight
Air shipping is one of the safest and fastest of all other shipping methods, and the goods can be delivered in a very short time compared to other shipping methods. Markets and retail are mainly used to transport goods by air transport.
Air transportation is a bit expensive compared to other modes of transportation due to airport taxes involved and high airfare and other fees. Most complex commodities are transported by air, such as flowers, food, medicines and other medicines, official documents and stationery. This is not suitable for shipping heavy goods and goods to other countries. What’s more, you need other means of transportation to get your goods from the airport to your doorstep.

Sea freight
The waterway of choice for shipping goods internationally basically refers to one country to another. It is one of the oldest modes of transport and is considered ideal for transporting large quantities of goods over long distances. Why do I say that there may be some delay in shipping the goods by water, usually it may take about 3 to 7 days for shipping by air, but shipping by water may take more days than air.
Water transportation is the best way to easily transport large quantities of goods from one country to other countries. As you can imagine, nearly 90% of the world’s goods are transported by water every day, such as steel, oil, crude oil, heavy machinery, auto parts, agricultural products, metals and minerals, to name a few. Ocean or ocean shipping with a wide range of carrier options, a vast global network and affordable shipping rates.
Factors Affecting the Choice of Transportation Mode
Safety
It is very important to protect the cargo from partial and total damage. In terms of product safety, shipping by sea is more risky than other shipping methods. To protect the goods in transit, some specific types of packaging are recommended.
Transportation cost
Your budget should be the most important factor in your decision when choosing how to best transport your export products. Shipping costs will affect the cost of goods. Water and rail transport are suitable for bulky and heavy cargo, while ground transport is suitable for small cargoes. Air freight is suitable for expensive and perishable goods.
Availability
Availability should be considered in terms of door-to-door shipping. It depends on the level and extent of the transportation system infrastructure.
Reliability and service regularity
The regularity and reliability of modes of transport vary. Shipping method decisions will be influenced by the speed and urgency of the product. Land, air and sea shipments are often subject to severe weather such as snow, heavy rain, storms and fog, which can lead to delays.”

Intermodal vs. Multimodal

“Intermodal vs. Multimodal
When talking about transportation of goods, two terms are commonly used to describe the method of moving them: Intermodal and Multimodal. At Containerships, we’re experts in multimodal, but we think you should be clear on what that means. So what exactly is the difference?
Multimodal Shipping

Multimodal is defined as the movement of cargo from origin to destination using several modes of transportation. In this instance, however, each mode is operated by a single carrier or multiple carriers, but under a single contract or Bill of Lading. A single carrier for a single journey. The same transport carrier is responsible for moving the shipment across all legs, in all modes.
The difference between multimodal and intermodal lies in the contract / bill of lading and transport carrier responsibility / liability of the movement.

If we look back to our example above, multimodal shipping would be where one company or one contract would handle all legs of the journey. This means that the same company is going to be responsible for moving your shipment in all legs, in all modes.
This can be set up in a couple of ways. You could go with a company that has all of these modes of transport available to them. Another way to set up a single contract for yourself is to use an agent. An agent would do all the negotiation on the back end for you while you only have one contract to keep track of. The agent would also be responsible for coordinating loading, unloading, and delays.
Advantages

This method holds several advantages, the first being less overheads for you. Companies that handle multimodal shipping will be able to handle delays in one leg of the shipment in relation to the other legs without you needing to be involved. This method provides a one stop shop service, so every single aspect is handled by one provider, giving you ease and peace of mind.
Advantages of multimodal transportation are:
a) Shipment tracking efficiency: Being able to monitor with one transport carrier from door-to-door;
b) Access to remote parts of the world with responsibility and liability of the movement with one transport carrier;
c) Efficiency in delivery time; and
d) Minimization of logistics coordination expenses of a shipper
Intermodal Shipping
Simply put, intermodal shipping is when your shipments are handled by several different shipping companies.

Intermodal is defined as the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport carrier responsible, each with its own independent contract. Multiple carriers during a single journey. Each leg of the shipment is be handled by a separate transport carrier. The Shipper will have several contracts, one with each transport carrier to handle their specific leg of the shipment.
To obtain the best routing is not the same as getting the best total shipping cost. Using a combination of different transport carriers is sometimes better to achieve the best total shipping cost for door to door movements. However, it requires more logistics coordination and hands-on involvement. Using a single transport carrier to provide a door to door movement, may achieve the best routing. It requires less logistics coordination and paperwork.
Let us say that you need to move a large amount of cargo to another site. Both of these sites are land locked and on different continents. This could mean in order to move your cargo, you will contact a trucking company to transport your shipment to a rail yard. Once at the rail yard, you will move your cargo to a shipping port. The cargo will be loaded on to a ship and moved overseas to another port- where it will be unloaded and moved to another rail carrier. Finally the shipment will be trucked from the rail yard to your destination location.
When using intermodal shipping, each leg of that shipment will be handled by a separate company. This means that you will have to have several contracts, one with each carrier to handle their specific leg of the shipment.
There are some advantages to doing this. You can negotiate terms separately with each company. This also means more overhead for you, as you will need to keep track of several contracts with different providers. You may also be responsible for handling coordination of delays, as one company will not be aware of the delays that another company might be having.
Advantages
a) Shippers can choose carriers to take advantage of lower rates for each transport leg;
b) gain flexibility and specialized handing of loading and unloading goods at different ports;
c) reduce their carbon footprint by choosing environmentally friendly carriers;
d) increased security of the products being transported; and
e) Shippers have more access to equipment and can better control capacity and selection of transit schedules.”

What is multimodal transport?

“What is multimodal transport?
Multimodal transport is the combination of different modes of transport to facilitate the movement of goods, even if it is faster and more efficient.

When it comes to this mode of transportation, more than one vehicle is required to deliver the goods to their final destination by using trucks, trains, ships, planes or other modes of transportation.
The advantage of intermodal transportation is to combine multiple modes of transportation most efficiently, while optimizing lead times, reducing inventory costs, and thus controlling commodity costs. The combination of these factors also results in a high degree of environmental sustainability, as intermodal transport reduces the environmental impact of transport.

Although supported by environmentalists and freight transport experts, multimodal transport may incur certain costs through the use of modal interfaces such as transshipment, loading and unloading, etc. However, you can hire a freight forwarding company to provide the interface between the various shipping types, without involving the importer or exporter in this exchange.
For more complex shipments, or a more thorough exploration of the quality/price ratio of each part of the shipment, multimodal shipping is a good and often the only option, especially to and from countries that are not close to the sea.
The advantages of multimodal transport are:
a) Ability to monitor the efficiency of cargo tracking for door-to-door deliveries through a single shipping carrier;

b) a transport carrier under the responsibility and obligation of transport into remote areas of the world;
c) delivery time efficiency; d) maximum
Reduced logistics coordination costs for shippers
All in all, in terms of transportation, multimodal transport is related to an operation in which goods are transported from origin to destination by multiple means, with a different contract per segment (meaning that each transport provider part of the responsibility).
Intermodal (by MacAndrews) is a transportation business where one supplier (and one contract) takes full responsibility from the origin of the goods to its final destination, although multiple modes are used.
The advantages of intermodal and multimodal transport lie in the most efficient combination of multiple modes of transport, optimizing delivery times, reducing inventory costs and controlling freight cost levels. This combination increases environmental sustainability and reduces transportation carbon footprint.

Intermodal challenges and solutions
Now that we’ve seen the benefits of multimodal shipping, let’s take a look at what challenges multimodal and multimodal shipping can present, and what solutions shippers and carriers will employ.
excessive paperwork
Although multimodal and multimodal differ in the number of contracts you have to deal with, multimodal can still be cumbersome when it comes to paperwork. For example, you have selected a carrier that handles multimodal shipments for you. Your job as a shipper is already done here, right?
Band news is that the company can still invoice you for different services, i.e. each shipment. As you spend more and more time processing each paper invoice, the overall shipping cost keeps growing. This is the hallmark of the paperless transport and logistics industry.
Challenge: Separate paper invoices for different services.
Solution: A paperless delivery management system that supports electronic signatures and photo proof of delivery.
Poor tracking and coordination
In long-haul freight, tracking a single shipment can require multiple resources, even when shipping boils down to one shipper and one carrier. Even inland shipments are difficult to monitor, let alone air and port-to-port sea freight.
Challenges: poor tracking and the need for constant updates.
The solution: track and trace and automated shipping notifications.
supply chain disruption
The year is 2021, and no shipper is immune to supply chain disruptions. The pandemic has presented many challenges to both intermodal and intermodal systems, and the logistics industry is still suffering to this day.
Especially when it comes to different modes of transport, shippers need to have security, which actually means being prepared for supply chain disruptions and having different intermodal and intermodal solutions as alternatives.
Challenges: Safety concerns, service disruptions, and rising transportation costs.
Solution: Increase safety measures such as contactless delivery.”

Shipping from China to Amazon FBA: The Ultimate Guide

“Shipping from China to Amazon FBA: The Ultimate Guide
Shipping from China to Amazon FBA is a very common and profitable Amazon business strategy.
It’s not as complicated as it sounds. However, it does get a little more complicated than simply asking the supplier to put a UPS label on it.

In this blog post, we will cover options for shipping from China to Amazon FBA (Fulfillment by Amazon)
Shipping Method
You need to determine the most suitable shipping method to ship your goods from China to the United States, depending on the method you choose; shipping can take anywhere from a few days to over a month. The ideal method depends on several factors, such as the weight, size and quantity of the products, shipping time, whether they are perishable and whether they contain hazardous or hazardous materials.

Three main shipping methods are offered: express, air and sea.
air transport
Air freight arrives faster than sea freight. If your total cargo weight is less than 200kg (about 440lbs) and two cubic meters (CM), air freight is one of the most cost-effective shipping methods. By contracting with a freight forwarder to organize your air freight, you can benefit from high freight rates, which will lower your shipping costs.
Air freight is a more complicated shipping process than air express; it usually takes 5 to 10 days to ship from China to the US using this method. Air freight may be cheaper than air express on a per kilogram basis.

While faster than sea freight, air freight is also more restricted.
sea ​​​​freight
If you’re shipping 400kg or more (approximately 880lbs) and 2 cubic meters or more in volume, sea freight is the best option. However, shipping is also relatively slow.
Depending on what you need to ship, ocean shipping can take up to a month to reach U.S. ports.
The main advantage of ocean freight compared to express and air freight is that it allows you to transport bulky goods cheaply and with fewer restrictions.
There are two common shipping methods to choose from: Less than Container Load (LCL) and Full Container Load (FCL). The bulk or quantity of inventory you are shipping will determine the appropriate option.
If you do not have enough inventory to fill a full container (FCL), LCL is usually more suitable. However, FCL allows easier tracking and is less susceptible to damage or tampering.
Express shipping
Express is the fastest shipping option available when using shipping companies like FedEx, UPS, and DHL. Express shipping can be very cost-effective if you are shipping a shipment with a gross weight of less than 200 kg and a volume of less than or equal to 1 cubic meter. Courier services will usually charge you based on weight or volume, whichever is higher.
Depending on the value of the goods you intend to import, US Customs may still apply; however, the process is less complicated than air freight. You can also avoid asking for a quote. Express shipping is also useful for small shipments that you may order to determine the viability of a product or its needs before placing a bulk order with a supplier.

normal mail
While not suitable for bulk or heavy cargo, regular mail can send light, compact packages. For example, if you need to request a product sample, regular mail is a relatively inexpensive option.
For valuable prototypes, you may consider opting for express shipping, with appropriate insurance. When you’re just starting out, regular mail can be a practical way to deliver goods directly to end users.
When to go for direct shipping from China to Amazon FBA
If there is a lack of time and you want products to reach the Amazon FBA as soon as possible
Good sync up or a longer experience with the supplier. Such that direct shipping is considerably less expensive than the middleman way.
Shipping directly from China to Amazon FBA – The Pros and Cons
Pros – China to Amazon FBA
Quicker transit times. There is a huge reduction in the time for the product to reach the warehouse. The easier the product reaches the warehouse, the start quicker you can start selling on Amazon.
Middleman cost is saved. You save the money and the hassle of paying someone to inspect your products.
Cons – The Challenges
Amazon requests to ship the products to different warehouses and not to one centralized location.
The freight and duties have to be paid before arriving to Amazon.
The product must meet the shipping and packaging and shipping requirements and standards set by Amazon.
Customs and Amazon Certification
Usually, shipping products from China to Amazon requires two certifications. One is the product certification of customs, and the other is the product certification of Amazon. When buying products from China, it is a good idea to check what certifications the supplier has. If the product does not have any certification, you must consider switching to another supplier. If the supplier’s product does not have any certification, it means that his product is not qualified. Product certification is also very important for us to sell on Amazon. Finally, product certification cannot be ignored.
1.) Proof of customs requirements
When the goods are cleared through customs, the customs has the right to require your products to provide relevant product certificates. If you are unable to provide it, customs may fine, detain or destroy your product. So you need to know what kind of product certification you need to provide to pass customs smoothly (this is very important). Because this is not a joke. We must minimize risk.
2.) Certification required by Amazon
When selling products on Amazon, we must know if we need product certification to sell on Amazon. We must comply with Amazon’s product regulations or the product will be closed.
in conclusion
I have shared what I know about Amazon, I hope this article can help you to buy products from China to Amazon.
Finally, after reading this article, if you need help with FBA, please contact us at tj-chinafreight.com and we will get back to you as soon as possible. For any information about shipping from China to Amazon FBA, please feel free to contact us.”