/ By TJ China Freight / China Freight News • International • Logistic • sea freight forwarder

Guides for Shipping to China From USA

Shipping from China to the USA is expensive and consuming for most importing companies. In this blog, we will briefly introduce the main methods of shipping from China, how long will shipping take from China, and the shipping pricing information.

Shipping from China to the USA: Air freight and sea freight. You can choose the most suitable methods according to our sea freight for air freight guide.

Air freight from china can be categorized by 2 types: general cargo and special cargo. The former type refers to physical products like electronics, clothing, furniture, households, and pharmaceuticals alike. The latter means anything that requires special attention or care, like live animals, dangerous chemicals, and things that needs need freezing or maintaining freshness. Shipping by air requires an air waybill (AWB) which is a contract that outlines the conditions of the sale between the seller and buyer. The main advantage of air freight is fast transit time despite a higher rate than sea freight.

Sea freight from China is a more common option of international shipping for importing from China. It is the cheapest shipping method. To calculate the cost of your sea freight delivery, you’ll need the following:

  • Certificate of origin
  • 10-digit tariff classification number
  • Incoterms

You will need to request a freight quote from a shipping logistics company once you are comfortable with the price. This quote will determine the shipping cost from China. You then provide the freight company with your supplier’s contact information, and they’ll handle the shipping container’s journey from China to the USA.

Hire a Freight forwarder from China to the USA

For most enterprises, using a freight forwarder in China will be the most effective method, for a professional forwarder can handle all of the shipping logistic stuff easier and faster. Freight forwarders will use sea or air freight, and have expertise in preparing the necessary documents to carry out the shipment. They may also have access to shipping networks, and knowledge of the best shipping routes from China to the USA. This can speed up the process and make it convenient for small businesses to receive shipments from China.

Besides, it is possible now for freight forwarders to complete door-to-door shipping from China to the USA. It is much more convenient.

How long does shipping from China take?

It depends on the methods you choose. Usually, air freight will short transit time, and ocean freight will take longer up to 40 days. Of course, the quicker you need, and the more you will have to pay. Meantime, the shipping time also is affected by the cargo type, weight, volume, quantity and more. Generally, sea freight is the slowest but most cost-effective shipping method than any other methods.

Cost of shipping from China to USA

How much does shipping from China to USA take? It depends on many factors, too, like weight, shipping methods, cargo insurance, and types, for the details, you can send an inquiry to our expert team to get a better rate.

/ By TJ China Freight / China Freight News • International • Logistic

Incoterms Guide for China Export & Import Logistic

INCOTERMS (International Commercial Terms), also known as shipping terms, freight terms, or trade terms, are the global standard terminology and definitions used in international trade to determine which parties are responsible for the shipment at varying times during transit.

The terms can be used in 2 groups.  one group of incoterms is considered only suitable for sea freight and inland freight: FAS, FOB, CFR, and CIF.  Another group for any mode of transportation includes EXW, FCA, CPT, CIP, DAP, and DDP.

5 Common Incoterms

EXW – Ex Works

The delivery is accomplished when the buyer picks up the goods from the seller at the named place (warehouse, storage or factory etc.), the seller doesn’t clear the customs for export. Buyer controls freight from door to door. The contractual shipper on the waybill should be the buyer.

The buyer will designate one freight forwarder to arrange to pick up the shipment from the named place and undertake booking, customs declaration, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

FOB – Free on Board

The seller’s delivery is completed when the goods are across the ship’s rail. The buyer controls ocean freight routing. Fob terms require that the seller also clears the goods for export. Generally, this is the term most often used in importing from China.

The buyer will designate one freight forwarder to arrange the transportation after the shipment is loaded on board the ship and undertake booking, customs clearance, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

CFR – Cost and Freight (named port of destination)

The seller’s delivery is completed when the goods are at the port of destination across the ship’s rail. The seller has to pay for the shipment’s delivery to the destination port and declaration the customs for export.

The seller will designate one freight forwarder to arrange a trailer for transportation and undertake booking, customs declaration, inspection, and delivery to the destination. And the seller burdens the relevant expenses.

CIF – Cost, Insurance and Freight (named port of destination)

This term is the same as CFR terms, except the seller agrees to purchase marine insurance in the buyer’s interest.

DDP – Delivered Duty Paid

The seller takes responsibility for carriage, delivery of the goods at the named place, and customs clearance. And the seller should pay for the tariff and other fees.

Another group

Group E (EXW) – This is the minimum obligation for the seller. The buyer picks up the cargo from the seller at the named place.

F Group (FAS, FCA, FOB) – The seller delivers to the carrier assigned by the buyer.

C Group(CFR, CIF, CPT, CIP) – The seller arranges the shipping method but doesn’t bear the risk of being damaged after loading.

D Group(DAT, DAP, DDP) – The seller is responsible for the maximum obligation, including the risk and cost during the transportation.

When you are choosing a China freight forwarder, make sure you know these incoterms well, which is essential for cost saving.

 

/ By TJ China Freight / Cargo • China Freight News • International • Shipping

What is the Main Difference Between NVOCC and Freight Forwarder?

There is nothing more important than choosing a proper shipping agent whether you are importing or exporting.  In order to help you to choose the right partner, we are here to give you the difference between NVOCC and freight forwarder. Continue to read.

What Is NVOCC?

An NVOCC may be defined as an entity that provides ocean freight services as a “carrier,” albeit with or without own or operated vessels.

The NVOCC accomplishes this by buying slots or space from a VOCC (Vessel Operating Common Carrier) and reselling the same to their customers, who can be exporters or forwarders.

NVOCC issues its own House Bill of Lading as a “carrier” and, in doing so, undertakes the responsibilities of a carrier subject to, of course, the terms, conditions, and liabilities of their bill of lading.

Apart from obtaining a license from the FMC, NVOCC operators also have to file a tariff before operation in the USA.

A tariff contains actual freight rates, charges, surcharges, freight classifications, rules, regulations, and practices of a common carrier (VOCC or NVOCC).

Who is a freight forwarder?

A freight forwarder is a supply chain expert who arranges for the seamless movement of cargo. And they do that by arranging and facilitating the transportation of your goods via different modes: ocean, rail, air, or road. The only golden rule about freight forwarders is that they are not the ones moving your cargo, only arranging for it.

Exporting goods is not easy with way too many steps, documents, and certificates to clear. It’s almost impossible for novice exporters to know all about these. So when you’re hiring a freight forwarder, you’re basically paying them to get all of these in order. As a result, in many instances, freight forwarders are referred to as ‘shippers’ in relation to ocean carriers.

What is the difference between NVOCC and Freight Forwarder? Check the following chart

Looking for China freight forwarder, TJ China freight is always the most trusted partner who will handle everything for your cargo. We offer sea freight, air freight, and rail freight and more. Better service and competitive price.

/ By tjchinafreight ivy / International

Russia to update its strategy in WTO amid sanctions, says Putin

Russian President Vladimir Putin chairs the supervisory board meeting of the presidential forum "Russia - Land of Opportunity" at the Kremlin in Moscow, Russia April 20, 2022. 
Russian President Vladimir Putin chairs the supervisory board meeting of the presidential forum "Russia - Land of Opportunity" at the Kremlin in Moscow, Russia April 20, 2022. 

On the 20th local time, Russian President Vladimir Putin said at the Metallurgical Industry Development Conference that the illegal sanctions against Russia by the West are contrary to the principles of the WTO. Putin ordered the federal government to make an assessment of the legality of Western decisions on Russia's metallurgical industry by June 1.

Putin said that the demand for metallurgical products in the Russian domestic market needs to be stimulated, first of all, the demand for the construction industry. He said, "Europe ignores the interests of its own entrepreneurs, and the price of metallurgical products in Europe will rise, just like inflation." Putin also ordered that the update of Russia's strategy at the WTO is ready by June 1.

Putin said that Russia is one of the leaders in the world's metallurgical industry, and for foreign buyers, cooperation with Russia in this field is stable and mutually beneficial.

Putin: Russian SMEs can be more active in Russia-China joint projects

"China is our largest economic and trade partner, with (annual trade volume) more than 100 billion U.S. dollars. I will not talk about large-scale projects related to oil, natural gas, aviation, machinery manufacturing, nuclear energy, etc.," Putin said at the meeting. Under the current conditions, SMEs can participate more actively in various projects between the two parties."

TASS reported that Putin also believes that to develop cooperation with China, it is necessary for Russian entrepreneurs to master logistics and legal knowledge.

Regarding the non-profit organization "Russia - A Country Full of Opportunities", according to the organization's official website, the organization was established in 2018 under Putin's initiative. Able to develop their potential, implement business ideas or proposals related to social life. Entrepreneurs, volunteers, college students and other groups can exchange experiences through this platform.

/ By tjchinafreight ivy / International

MOL starts to stop using used electric cars

What happened?

It is believed that many people still have the impression that a car freighter named "Felicity Ace" caught fire and sank not long ago. The freighter carrying nearly 4,000 cars caught fire in the Atlantic Ocean, including Porsche, Bentley Lamborghini The luxury cars, as well as the very classic Honda Prelude sports car and many other models, were buried in the sea with this freighter. Recently, foreign media reported that some auto transport companies have begun to implement restrictions or outright bans on the transportation of electric vehicles, mainly due to concerns about the potential fire risk of batteries.

Felicity Ace freighter that caught fire
Felicity Ace freighter that caught fire

Japan's Merchant Marine Corp (MOL) is the latest company to say it will stop shipping used electric vehicles.
MOL, one of the world's largest ro-ro shipping companies, caught fire with its 6,400 CEU Felicity Ace and eventually sank in the Azores, making it the biggest shipping accident so far this year, according to accounting firm Vinson & Elkins. The total loss is estimated to be approximately $500 million.

This is also the fourth large ro-ro ship fire involving electric vehicles since 2019.

Why is MOL Stopping Shipping Used Electric Vehicles?

MOL freighter
MOL freighter

As a standard procedure, MOL inspects transported vehicles prior to shipping to assess for obvious problems that may pose a fire risk, such as fuel or oil leaks. However, these routine inspections are difficult to completely avoid the risk of fire for the current second-hand electric vehicles.

It is worth noting that Mitsui is the owner of the Felicity Ace cargo ship that sank in fire and sank, and the company lost more than 500 million US dollars due to the sinking incident. While the cause of the fire may remain a mystery, an electric vehicle on board is suspected of causing the blaze. However, a spokesman for the company said the new policy had nothing to do with the "Felicity Ace incident." Instead, the spokesperson said, it was a policy review enacted as a result of the increasing number of used electric vehicles the company received for transportation.

It is reported that many other ro-ro shipping companies will also decide to stop shipping used electric vehicles this year.

Aware of the rising risk of electric vehicle fires, the International Maritime Organization (IMO) issued a document last June saying it needed to reassess existing ro-ro ships' firefighting equipment and firefighting measures.

London-based law firm Watson Farley & Williams said in a recent report that while it is unclear whether electric vehicles are more likely to catch fire than conventional cars, it is widely believed that fires in boats carrying them are more catastrophic. , and more difficult to handle. “If the crew is unaware of the different firefighting procedures for electric vehicle fires and conventional fires, total loss is likely. There is evidence that current suppression and drenching systems are not adequate to deal with this new risk. So new designs need to be system and incorporate it into the ship design.”

/ By tjchinafreight ivy / International

How dependent is Europe on Russian coal?

Europe imposes sanctions on Russia

The disruption to global coal trade flows caused by Western sanctions on Russia and the resulting increase in ton-mile demand will benefit the dry bulk market.

The earth and commodity logistics
The earth and commodity logistics

On April 7, local time, EU countries agreed to impose a coal embargo on Russia and give a 120-day phase-out period, a month later than originally proposed, giving EU member states time to find alternative sources of supply.

It should be noted that among the "three major items" of coal, oil and natural gas, coal is undoubtedly the easiest to start with. Russia is the main source of thermal coal in Europe. The import volume in 2021 will be 33 million tons, accounting for the total import of European thermal coal. more than half of the amount. On the Russian side, the ban will affect a quarter of Russia's coal exports, according to the European Council.
Relative to coal, there is currently no agreement within the EU to embargo Russian oil and gas. The largest trade between the EU and Russia is oil and natural gas, which is extremely important to the European economy. For the EU, the embargo on oil and gas is undoubtedly an act of "harming others and not oneself".

One broker said: “The flow and flow of the coal trade market is changing as European coal buyers rush to switch suppliers. The US, South Africa, Australia, Colombia and Indonesia may become alternative sources, increasing demand for dry bulk. The ton-mile demand for cargo ships. In theory this should have a positive impact on freight rates, but we need to focus on how long this is likely to last.”
Another market player added: "If a large number of ships go to Europe as a result, the results may be unexpected."

Because of the ban or the buyer's voluntary sanctions?

Europe relies on Russia for coal imports
Europe relies on Russia for coal imports

In fact, there have been signs for weeks that European buyers want to increase the supply of non-Russian coal. Either because they expected such a ban, or because they decided to sanction themselves.

It is not easy for the EU to find alternative sources of Russian coal. Coal exporters Australia and Indonesia have reached their production limits, and South Africa is also constrained by logistical issues, and a global rush to buy coal is expected to keep coal prices higher.

But this sudden collaboration is difficult. After all, alternative coal producers have their own supply needs, mostly from China and India. So if China or India's coal import demand increases, they don't have the extra capacity to sign long-term contracts with Europe.

The European Union is not the only region to impose a ban on Russian coal, with Canada, France, Germany, Italy, Japan, the United Kingdom and the United States jointly saying on April 6 that they would all "phase out and ban the import of Russian coal."

/ By tjchinafreight ivy / International

Fifth round of EU sanctions on Russia

At the same time, the export of semiconductors, automobiles and transport equipment to Russia is banned, with a total export value of about 10 billion euros per year.
On April 5, local time, the European Commission issued a statement on its official website saying that the chairman of the European Commission, Ursula von der Leyen, proposed to impose a fifth round of sanctions on Russia.

According to the statement, the fifth round of EU sanctions against Russia includes the following six aspects:

1. An annual import ban worth 4 billion euros will be imposed on coal from Russia. That would cut into another important source of income for Russia.

2. A complete ban on transactions by four major Russian banks, including VTB, Russia’s second largest bank. These four banks, we are now completely cut off from the market, account for 23% of the Russian banking market share. This will further weaken Russia's financial system.

3. Prohibit Russian ships and Aeroflot ships from entering EU ports. Certain exemptions will cover necessities such as agricultural and food products, humanitarian aid, and energy. In addition, we will propose a ban on road transport operators in Russia and Belarus. The ban would greatly limit the options for Russian industry to obtain critical commodities.

4. Further export ban worth 10 billion euros in vulnerable regions of Russia. This includes, for example, quantum computers and advanced semiconductors, but also sensitive machinery and transport equipment.

5. A specific new import ban, worth 5.5 billion euros, to cut off the flow of capital to Russia and its oligarchs, from wood to cement, from seafood to wine.

6. Some very targeted measures have been taken, such as the EU's blanket ban on Russian companies from participating in public procurement in member states, or the exclusion of all financial support for Russian public institutions, both European and national. Because European taxes should not go to Russia in any form.

"We are also working on other sanctions, including sanctions on oil imports from Russia," added Von der Leyen, explaining that a fifth round of sanctions would further put financial pressure on Russia.

As of now, the effective date of the fifth round of sanctions has not been announced. According to EU rules, the European Commission's proposal must be unanimously agreed by the 27 member states before it can come into effect.

German Foreign Minister Annalena Baerbock said recently that Germany, as a member of the European Union, has agreed to completely end its dependence on Russia's fossil fuels, starting with coal, followed by oil and gas.

However, the Confederation of German Industry has previously said that giving up imports of natural gas and oil from Russia in the short term will cause huge damage to German industrial companies.

The president of the association, Ruswarm, said that the energy embargo will harm Germany and the European Union more than it will affect Russia. German industry, supply chains and security of supply will all face "extremely serious" consequences.

He further said: "Energy imports from Russia cannot be replaced overnight. One-third of the oil and more than half of the natural gas that Germany uses now comes from Russia."

It is understood that any sanctions on coal will seriously affect the trade volume of bulk carriers as the energy crisis engulfs Europe. At the same time, Europe relies heavily on Russia's oil and gas resources in the fields of transportation and energy.

Relevant data show that Russia is an important importer of EU natural gas, oil and coal. In 2021, 40% of the EU's natural gas imports, 25% of its oil imports and 45% of its coal consumption will come from Russia.

/ By tjchinafreight ivy / International

Lebanon and its central bank are bankrupt.

Al-Shami told local media: "Both the state and the Lebanese central bank are bankrupt, the losses have been incurred and we will try to reduce the losses for the people."
He said that the losses caused by the bankruptcy will be shared by the central and local governments and the Lebanese central bank, and neither party has any objection to the distribution of responsibilities for the losses.

Lebanon's central bank governor Riad Salameh on Monday denied that the institution he headed for 30 years was bankrupt and said it was still fulfilling its statutory duties despite losses in the financial sector.
The governor's comments in a statement were apparently in response to the deputy prime minister, who said on Sunday that both the state and the central bank were bankrupt.
"The news of the bankruptcy of the central bank is not true," Salameh's statement said. It added that the bank was still carrying out its statutory duties under Article 70 of the Money and Credit Law, which stipulates that the bank is entrusted with the maintenance of Lebanon's monetary integrity and maintaining economic stability.
Salameh said: “Despite the losses in the Lebanese financial sector, which the Lebanese government is currently working on with the International Monetary Fund to develop an economic recovery plan to deal with these losses, the Lebanese Central Bank has a role and will continue to do so.”

Lebanon has been grappling with a severe economic crisis since late 2019, including a sharp currency devaluation and shortages of fuel and medical care.

Lebanon's currency has lost 90 percent of its value, reducing people's ability to access basic goods, including food, water, health care and education, and is experiencing power outages due to fuel shortages.

Al-Shami said the situation in Lebanon cannot be ignored, so bank withdrawals cannot be open to everyone. Due to the ongoing economic crisis, foreign currency cash withdrawals in Lebanon have been severely restricted since 2019.

According to the relevant regulations, "bankruptcy" means that the government is unable to pay debts and interest as they come due. Among them, one of the reasons for the bankruptcy of a country is a lack of liquidity, when a country is temporarily unable to repay its debts and pay interest due to its inability to liquidate its asset base quickly, it may declare “bankruptcy”. However, members of the Lebanese Economic and Social Council said in an interview: "Although Lebanon has [really] faltered in repaying its debts, it is not yet a bankrupt country".

Regarding the current social and economic situation in Lebanon, some buyers' production and business activities are affected by social unrest in the country and the shortage of domestic dollars, resulting in payment arrears. Coupled with the current Russian-Ukrainian conflict and the global epidemic, the tourism industry, which is Lebanon's main source of foreign exchange income, has been further affected.

It is expected that business risks will further increase as the multiple political and economic situations in Lebanon continue to deteriorate. Especially in the current situation where Lebanon's exchange rate has plummeted, the local currency has depreciated, and the economy is facing high risks, importers are likely to use this loophole to damage the interests of suppliers due to cost pressures. Good risk control, beware of risks such as abandonment and non-payment by buyers at the destination port, so as to avoid losses caused by the loss of money and goods.

/ By tjchinafreight ivy / International

Sri Lanka in deepest economic crisis in decades

According to foreign media reports, Sri Lankan President Gotabaya Rajapaksa declared a state of emergency in the country on April 1. Sri Lanka is mired in its worst economic crisis in decades, facing severe shortages of foreign currency and fuel and other necessities.
Sri Lanka, a country of 22 million people, is dealing with a severe foreign exchange crisis that has devalued the country's currency and affected the supply of basic commodities such as food, medicine and fuel. The government is struggling to secure foreign exchange to pay for fuel and other vital imports.

What happened in Sri Lanka?

The island's foreign exchange reserves have hit rock bottom, with commercial banks unable to obtain dollars to finance imports of food, fuel and medicines. Sri Lanka was in the throes of a severe economic crisis when the Covid-19 pandemic hit, reducing remittances from foreign workers and denting the lucrative tourism industry - the economy's main source of dollars.
In turn, Sri Lanka's debt management plan, which relied on access to these markets, was derailed, and foreign exchange reserves plummeted by nearly 70% in two years.

What happened to Sri Lanka's foreign debt?

The country had only $2.31 billion in reserves left as of February, but faces about $4 billion in debt repayments in 2022, including a $1 billion international sovereign bond (ISB) due in July.
The ISB accounts for the largest share of Sri Lanka's external debt at $12.55 billion, with the Asian Development Bank, Japan and China being the other major lenders.
In an assessment of the country's economy published last month, the IMF said public debt had risen to "unsustainable levels" and foreign reserves were insufficient to cover near-term debt.
Citi Research said in a report late last month that the conclusions of the IMF report and the government's recent measures were insufficient to restore debt sustainability, strongly suggesting "the need for debt restructuring."

Laugfs Gas LGGL.CM, which ordered cooking gas, was unable to get $4.9 million in payments from local banks due to a severe shortage of foreign exchange, and a vessel carrying 5,500 metric tons of gas had to leave Sri Lankan waters.

The Sri Lankan government said it was seeking a bailout from the International Monetary Fund and loans from India and China. Indian traders have loaded 40,000 tonnes of rice, the first large-scale food aid from India since Colombo received a line of credit from New Delhi.

After offering CBSL a $1.5 billion swap and a $1.3 billion syndicated loan, China is considering a $1.5 billion credit line and up to $1 billion in separate loans to the island nation.