What is the Current Situation and Future of the China Shipping Industry?

With more than 18,000 kilometres of coastline and 123,000 kilometres of inland waterways, China’s unique natural conditions have laid a good foundation for the development of the shipping industry. The booming economy, especially the continuous, rapid and stable development of the national economy over the past 20 years since the implementation of reform and opening up, has provided a rare opportunity and impetus for the rise and development of China’s shipping industry.

Marine transportation, also known as “international marine cargo transportation”, is the most important mode of transportation in international logistics. As international trade becomes more and more prosperous, the process of globalization is further accelerated, and in the current global integration, all industries such as bulk commodities, consumer electronics, garments, etc. are deeply dependent on marine transportation, and marine transportation has also become the mainstream way of trade between various countries/regions, 19% of the world’s bulk sea cargo is currently shipped to China, and 20% of container transportation comes from China; and the new Of the new volume of maritime cargo transported, 60-70% is destined for China. China is the world’s largest port in terms of cargo and container throughput, with three of the top five ports in the world in terms of container throughput. As China’s economic influence continues to expand, the world’s shipping centre is gradually shifting from the West to the East, and China sea freight industry has entered the forefront of the world’s maritime competition. It is reported that China’s ocean shipping fleet has now entered the top ocean freight forwarders in the world.

The shipping industry has always been regarded as an important pillar industry for a country, and governments attach great importance to the nationalisation attributes of shipping enterprises. Cargo volume growth is slowing down and the overcapacity situation has not been fundamentally improved while cargo volume growth is being tested.

Market concentration is increasing, with mergers and acquisitions and alliances continuing and dominating market share. Changes in the internal and external environment have also led to changes in the liner industry, while a number of new trends have emerged. In recent years, the pace of consolidation in the global container shipping industry has accelerated, with mergers and acquisitions of liner companies and several restructuring of shipping alliances. At present, three alliances dominate the container shipping market and occupy the majority share on the three major east-west trunk routes. The outlook for China sea shipping industry is good and it is expected that by 2030 China will continue to secure its position as the world’s number one cargo trading nation and will dominate the global container maritime trade.

How Can I Track My Shipment Accurately?

As we all know, logistics are ever-changing and require customs clearance, taxation and freight …… Keeping up to date with the logistics of your goods will help you to better track the arrival of that cargo.

Air china cargo

Listed below are the most common airlines in order of airline code.

Tj China Freight

To track air freight shipments, an AWB number is essential. AWBs are displayed on a document called an Air Waybill, which is always shipped with all shipments transported by the airline. This number provides useful information about your order, but most importantly it is used to track the shipment.

The AWB number is an 11-digit document code consisting of a three-digit airline prefix and an eight-digit number representing the waybill number. It can be expressed like this. 321-87654321.

China sea shipping

The best way to track China sea freight is to use the shipping line’s container tracking system, which will give you the location and status of your cargo.

Container number – The serial number starts with four letters. The next six digits are the serial number and the last digit is the check digit.

Bill of Lading Number – The bill of lading is the document required by the shipping company to ship your goods by sea.

Booking Number – This is the booking number provided to you by the shipping company for your shipment.

It can be difficult to track every container, so it makes sense to use a freight forwarder such as SIS. They can give you a full picture of all the containers registered to your company, and you can also check your shipping company’s website directly.

If you need any China freight forwarding service and also need to tracking the state of the cargo, Send an inquiry to  TJ China Freight to get a better rates.

The Concept of Freight Forwarding and Its Main Responsibilities

Freight forwarding company is called freight forwarding company, which is mainly responsible for the business of cargo transportation, both domestic and foreign trade. The duty is to transport the goods entrusted by the client from one place to another through the established transport routes. They serve the whole society and are a bridge and a link between the cargo owner and the supplier of transportation capacity. The main business of freight forwarders is to provide freight intermediaries. Freight forwarders are responsible for working with customs, shipping companies agents are responsible for working with customs, shipping companies and airlines and transporting the client’s goods to overseas trade customers according to the terms of trade. Its responsibility is to transport the goods entrusted by the customer from one place to another by using sea, air and land transport methods through the determined transport routes. The service is intended for the entire community and is a bridge and link between cargo owners and transport capacity providers.

Local forwarder agents in china are generally engaged in the domestic transportation business, usually using zero-load and collector truck transportation; international freight companies are generally engaged in ship and air freight. Both companies are companies that own their own cars or ships, i.e., the owners. Domestic freight forwarders are generally freight forwarders, and international freight forwarders are generally ocean or freight forwarders.

Freight forwarding companies are divided into a level of international freight forwarding company limited, there are two, three, etc., a level of agents can be directly in the air or sea companies or railroad companies booked, two must only be booked at a level, and so on the formation of the international freight forwarding industry, is the inevitable product of the international commodity circulation process, is an indispensable component of international trade, because of this, the industry is recognized by countries around the world for international trade freight forwarding for businesses. Very proud to say that TJ China Freight is a first-class freight forwarding company approved by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China, with first-class freight forwarding qualifications and a freight forwarding company engaged in international maritime and air freight forwarding services as an NVOCC. If you are looking for a  top ocean freight forwarders in China, TJ China Freight is a good choice.

London Heathrow to See Business Expansion Due to Outbreak

In the latest news, the operator of London Heathrow Airport has confirmed that it will lift the cap on airline operations through the airport from 30 October.

Heathrow Airport Limited (HAL) introduced the cap following major delays and cancellations to airport services as it struggled to meet fast-growing passenger demand at the height of the post-pandemic period.

Place flying in sunset sky

The airport has also come under pressure this year due to delays in cargo handling and the threat of industrial action.

Heathrow handled 18 million passengers this summer, more than any other European hub, according to HAL, although it said – during the blockade – it was hit harder than its European rivals.

John Holland-Kaye, Heathrow’s chief executive, commented. We have removed the summer cap and are working with airlines and their ground staff to restore full capacity at peak times as soon as possible”.

Looking ahead, the operator noted that while demand is getting stronger, it has not yet fully recovered to pre-Covid levels.

HAL forecasts that total passenger numbers will reach 60 to 62 million in 2022, some 25 percent less than in pre-pandemic 2019.

In addition, headwinds from the global economic crisis, the war in Ukraine, and the impact of Covid-19 mean that a return to pre-pandemic demand is unlikely for several years, except at peak times.

“Our top priority is to re-establish the airport ecosystem to meet peak demand,” a statement from HAL said.

“To do this, businesses across the airport will need to recruit and train up to 25,000 security cleared personnel – a huge logistical challenge.”

It said its balance sheet remained “solid” despite the losses. Underlying losses so far this year have risen to £400 million (US$460 million), adding to the £4 billion (US$4.6 billion) sustained in the previous two years.

HAL said it had taken “responsible steps to protect liquidity and cash flow in the face of uncertain markets and to reduce gearing”.

Heathrow said it would aggressively expand its business and actively engage with Chinese freight forwarders and various other airfreight operations to change the situation, despite the huge challenges it faces.

 

What Will Be the Trend of China’s Freight Forwarding Industry

Since the reform and opening up, China freight forwarding industry has developed rapidly and played an important role in expanding foreign trade, attracting foreign investment, expanding employment, and promoting the development of third-party logistics. At present, with the implementation of the “One Belt, One Road” strategy and the vigorous development of cross-border e-commerce, the development of international freight forwarding is expected to enter a new chapter.

Before the reform and opening up, cargo agent in China was strictly controlled and lagged behind in development. After the reform and opening up, the Chinese government gradually liberalized the management of international freight forwarding, international freight forwarding industry has ushered in rapid development. China’s international freight forwarding industry employs about 2.5 million people, the development momentum is strong. At the same time, the “Belt and Road” strategy and the continuous development of cross-border e-commerce provide sufficient growth momentum for the international freight forwarding industry, with a bright future. However, the international freight forwarding industry itself also has certain limitations. On the one hand, the international freight forwarding industry is a pure service industry, closely related to the quality of service, geographical location, interpersonal relationships, past history, etc., resulting in a small number of small and medium-sized freight forwarding companies and large freight forwarding companies, which is not conducive to the further development of the industry.

On the other hand, international freight forwarding is an industry where competition and cooperation coexist. For international freight forwarding enterprises, to achieve complementary business between different countries, regions and enterprises, information sharing and freight network sharing to enhance their own strength. In the above context, China’s international freight forwarding industry will show the following four major trends.

First, large-scale application of Internet information technology to improve the scope and efficiency of sharing and cooperation. Through the use of modern information technology, the integration of physical logistics networks and invisible information networks can be achieved.

Second, continue to extend the industry chain. A strong freight forwarder will certainly expand its business to logistics and supply chain management consulting services to improve its competitiveness.

Third, specialization, refinement and specialization continue to strengthen. With the increasingly fierce competition in the market, how to stand out has become the primary consideration of many small and medium-sized international freight forwarding enterprises. Therefore, strengthening specialization, refinement and specialization is inevitable. Finally, the speed of integration is accelerating. Since the development of the international freight industry, the trend of integration has gradually unfolded, especially for enterprises with similar geographical ties, regional concepts and social relations. With accelerated integration, the international freight industry can develop better.

Black Friday 2022 is Just Around the Corner and You Need Professional Freight Forwarders!

You may say, why should I call you professionals when I can contact the logistics myself?

  1. Going it alone

For most shipments, it is simply not possible to arrange international shipping online with a sea or ocean freight forwarder.

It can be done even without a freight forwarder, but for the layman it is a dangerous game. When it comes to freight, there are many things that can go wrong, and often do. You need to cover your bases with freight insurance.

  1. Your supplier arranges for the shipment to be located furthest away within the United States

This is a classic trap that often sees inexperienced importers fall into. Many suppliers offer to arrange shipments as far as the US ports. This may seem like a good deal if you only add in the cost of local trucking. But there are other costs involved.

Such shipping arrangements often use one of the “C” Incoterms, particularly the CIF Incoterms. These Incoterms have several disadvantages for the importer, including the common situation where the importer is held hostage by inflated costs.

  1. Your supplier arranges the entire shipping process

Your supplier may be an expert in manufacturing or trading, but they will not be an expert in shipping.

If they have an arrangement with a local freight forwarder that can manage the entire shipping process, it is unlikely to be any better than what you have arranged. At the end of the day, the supplier will be looking to recover their costs.

If they cost account for freight costs, they have no incentive to secure a good price. This means you could be paying inflated shipping costs.

If they offer a sales/freight package, they are likely to jack up the price.

This will result in you walking out the door with high logistics costs and no insurance. We all know that reaching the exporter’s warehouse requires customs clearance, tax payment and customs brokerage……. Anything that goes wrong at any point in the process will not guarantee the timeliness of your shipment.

Let TJ China Freight help you reach another peak in your career with this upcoming biggest promotion of 2022!

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.

Air Freight or Sea Freight, Which One Would You Choose?

When it comes to choosing freight methods when you are doing import or export business, you will take a lot of elements into consideration, such as cargo weight, your budget, time, distance and type of commodity, and service like door-to-door or port-to-port. Air freight and sea freight are 2 of the main logistic ways for oversea sipping. For beginners who will ship large-scale or bulk cargo, it is essential to get to know the difference between these 2 ways. Here TJ China Freight will offer you some guidelines for how to choose your freight way, air freight or sea freight.

Air Freight vs. Sea Freight

Before you decide whether to use air freight or sea freight, you need to think about 3 questions first.

  1. Want to Save Money? As with parcels, freight cost is weight-based. If your shipment is small (up to about 50 kg) you’re better off with express freight shipping. Heavier than that, it gets more economic to go with air freight shipping. Then around the 500-kilogram mark (1100 lbs), ocean freight becomes cheaper. The differences can be staggering. For instance, a $195 ocean shipment can cost $1,000 by air. These weight cut-offs are approximate because costs don’t stay static. But you can get accurate estimates by get an inquiry from TJ  team, the best China freight forwarder offering you best shipping solutions.
  2. In a rush? Taking China to US door-to-door as a guide, express freight shipping takes about 3 days, compared to 8-10 days for air freight and 30 days or more on ocean freight. Each of these has a quicker premium option. Expedited ocean freight, for instance, can often shave 10 days or more off the transit time. Of course, there are always small ways to reduce the size, like skimping on packing or only palletizing after import, which may reduce the costs to make the air freight costs.
  3. Want your cargo reached as the appointed time? Ocean freight shipping is more likely to get caught up with long delays like bad weather and port congestion. That’s risky if it’s critical your shipment arrives by a certain date – even if that date is well after the estimated transit time for ocean freight shipping. Ocean freight moves around much more on a container ship than in the hold of a plane, so it is more likely to get damaged.

If you are facing an issue with choosing a freight forwarder for your importing or exporting to China, you can contact us for sea freight forwarding service or air freight forwarding servie. Excellent service and cost-effective solutions for your business project.

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.

 

Benefits of Hiring China Freight Forwarder for Your Business

When importing from China,  hiring a freight forwarder in China will make everything much easier. TJ is a professional local China freight forwarder agent providing one-stop service including shipping service,  customs broker and clearance, and door to door service, and more. Whether you are buying furniture, car parts, or household appliances, working along with TJ China freight in a long run is a crucial step to making your business become more successful. Here today, we are going to show you the benefits of hiring TJ China freight.

  1. Lower Rates

Price will always be the first reason when you choose an agent. The lower labor cost, lower exchange rate, lower expenses, and other factors, make Chinese forwarders’ charges much cheaper, not only the shipping rates but also in other handling fees. The situation here allows them to work out the best pricing based on your specific logistics needs. And this translates to bigger profit margins for buyers or can be able to sell at more competitive prices. Please note that most international freight forwarders with operations in China will use a local logistics or forwarding company because of their lower costs and local knowledge, which means the shipping agents in your country cannot handle China shipments directly.

China sea freight forwarder
Sea Freight
  1. Flexible Logistic Solution

For TJ China Freight, it is much easier for us to adjust the operation to suit the client’s needs better and handle the shipment in a more proper way. Multinational cargo forwarders are stuck with using their own overseas office to move your shipments, which sometimes is not the best option because their allied office may not have the expertise that’s just right for you. This means they do not have the ability to switch service providers or improve their level of service if there is a problem. You’d better find the one that big enough to manage all your shipping needs, and small enough to care about your cargo. TJ China Freight is a good partner, and we can provide you with a more cost-effective solution as you expected. Sea freight, air freight, rail freight and complex. You can contact us for a quick quote.

  1. Customized Service

Usually, there will be one or two individuals communicating with you, and a professional team will manage your entire logistic operation. One-to-one service will help improve the efficiency of cooperation, and they are more familiar with your operation and your needs. They can also empathize with your daily stresses as you are not just a number for them and can pay more attention to your problems and come up with a solution quickly.

  1. Professional & Reliable

Most people know that there are tons of paperwork and administration, logistics, timings, time differences, currency, language barriers and strict import, export and customs procedures to deal with, and every single country has different regulations that have to be fully understood and met by the international freight provider to ensure safe and speedy delivery of goods. Local agents in China have many more choices in selecting the best routing, carrier, and price combination. They also can more easily adapt and change their operations to cater directly to you – the importer.

Compared to a multinational, good China freight forwarder can help you solve some urgent issues faster and more efficiently, and also is more familiar with the destination countries’ regulations, which will save you lots of time and cost.