/ By tjchinafreight ivy / Shipping

How to avoid extra charges in shipping

For SMEs, warehouses, manufacturers, distributors and importers, controlling freight costs is critical to maintaining the profitability of product lines, and even the success of the business itself. Here are some basic steps to avoid incurring additional unexpected costs in shipping.

1. Make sure you receive a fixed cost quote
This is where it becomes important that you correctly report the weight and dimensions of your load. When you're ready to ship, make sure the carrier provides terms that outline all potential costs associated with the shipment and that the items you'll be shipping are properly documented. If you fail to receive these fixed cost quotes, or receive inaccurate records, you may end up paying much more than you expected.

2. Has the correct size and weight
The key to an effective fixed cost quote is accurate length, width, height and weight measurements. If the carrier shows up and your load is bigger or heavier than expected, you will pay more immediately.

3. Record specific delivery and pickup dates
Just as you want accurate fixed cost quotes, you want accurate delivery and pickup dates. It is critical that these times are recorded in writing in case the carrier misses an appointment for either party.

  • When you pay for shipping, the payment is more than your guaranteed space on the truck. You're paying for timeliness, and if you're a business owner, you know how important it is to deliver goods as promised.
  • If you fail to record specific dates for pickup and delivery and provide them in writing, the carrier may miss those dates and you will be charged for services not provided.

Often, delays occur without the carrier's intention. Severe weather can strike at any time, and road collisions can shut down entire highways. Still, it's important to have official documentation proving delivery and pickup dates.

4. Know your pickup and delivery locations and their limitations
Make sure the type of truck you order can reach the pickup and delivery location. Can a 53-foot truck turn in front of your facility? Can they pick up from your dock? Check yourself to make sure the carrier cannot classify the pickup or delivery as residential. Don't misrepresent a residential location as a business and hope the carrier won't notice. Residential pickup or delivery will always cost more. You want to include this information in your original quote request so that you can find a carrier that offers the best price for this particular service as part of your original quote.

5. Don’t overlook special services
If you are ordering goods, please consider whether any special handling is required. In almost all cases, if you fail to report something of this nature, the carrier will charge significantly more than the agreed rate. However, following this advice will not only save you additional shipping costs, it will also keep your shipments safe from unnecessary damage.

  • The most common special services include heating, tailgate, scheduled pick-up and special handling of dangerous goods. Consider what you'll be shipping, and if you think you'll need any of these services, be sure to alert the carrier before your shipment is loaded onto the truck.
  • You won't have to worry about having to pay later, but if your shipment does require these services and you don't receive them, you could lose important shipments in transit.

6. Pack your package properly
If you fail to pack your cargo in the correct way, you may damage not only your cargo, but other cargo being transported within the truck, especially if it is shipped in LTL. This can lead to a costly and avoidable claims process.

7. Make sure all taxes and fuel surcharges are included in the quote
When you get your fixed cost quote, is it "all"? Make sure that taxes and fuel surcharges are clearly stated, otherwise when the carrier adds these charges, the final bill can easily be 20-40% higher. At Freightera, all quotes are all-inclusive, as long as you quote exactly what you're shipping!

8. Please have all customs documents ready and forwarded to the carrier at the time of booking
Before contacting the carrier or broker to arrange a pickup, make sure you have a customs broker that can clear the shipment into the country of delivery and complete all paperwork. If you do not already have a customs broker, seek advice from your carrier or broker in advance. You don't want to leave it until the day it ships, as the shipment could hang up at customs, causing you extra costs, delays and a lot of stress.

9. Make sure you have the coverage you need
Carriers and brokers typically offer little or no insurance ($2.00/lb). If you're shipping valuable goods, be sure to purchase additional insurance, and make sure all quotes clearly state this coverage and its costs. Also check with a third party ahead of time to ensure the carrier or broker has a history of paying claims. Too many carriers and brokers have policies that automatically deny any insurance claims, forcing shippers to sue in the event of damage. Make sure you are properly covered by the insurance company, carrier or broker that covered your claim.

10. Make sure quotes are in your currency
Many carriers operating in the US are actually based in nearby countries. Therefore, the quotes you receive may not be in your most frequently used currency. Due to different exchange rates, the difference between the price you see on the quotation and the price you have to pay can be very large.
When you receive a quote before shipment, make sure the quote is in your currency. If you fail to spot that small but crucial difference when confirming shipping costs, the final bill could be significantly higher than you expected.

/ By tjchinafreight ivy / Shipping

Introduction to container freight terminology, freight forwarding and foreign trade notices

Container

A sea container (also known as a container, freight container, intermodal container, ISO container, hi-cube container, box, conex case, and sea tank) is a steel container that can be moved repeatedly within a product for safe and efficient movement Use an intermodal freight system.
Container shipping comes in many different sizes and options, including specialty options such as hanging garment containers, half-height containers, bulk shift containers and tanks. While these all have their uses, they are very niche.

Container leasing
The container leasing market has been fast-growing over the years. Today, around 55 % of the global container fleet is owned by leasing companies. Making container leasing a force to be reckoned with.
Are you considering leasing containers instead of buying? In that case, keep reading. We’ll tell you all you need to know about the different types of container leasing. As well as weigh the pros and cons of buying containers vs leasing them.

Container terminal
In container transportation, the specific handling department for the exchange and storage of boxes or cargoes. It authorizes the carrier or its agent to carry out the following business:
(1) Exchange and storage of FCL shipments.
(2) Those who have a container freight station shall handle the handover of LCL goods.
(3) Arranging the berthing of container ships, loading and unloading containers, and preparing stowage plans for each voyage.
(4) Handle the compilation and signature of relevant shipping documents.
(5) Prepare and sign the relevant documents for the entry, exit and circulation of the container using the means of transport.
(6) Handle the inspection and maintenance of containers, vehicles, loading and unloading tools, as well as cleaning and fumigation of empty containers.
(7) Send and receive, store and keep empty boxes.
(8) Arrange the stacking of empty boxes and heavy boxes in the yard, and prepare a site allocation plan.
(9) Other related business work. Container loading and unloading areas are generally composed of dedicated docks, frontiers, yards, freight stations, command towers, repair departments, gates and offices. Sometimes the storage yard or freight station can be extended to the transfer station of 5~15 kilometers in the urban area.

Container front yard (marshalling yard)
In front of the container terminal, in order to speed up the loading and unloading of ships, the container is temporarily stacked. Its function is: before the container ship arrives at the port, the export containers are neatly stacked in a planned and orderly manner according to the stowage requirements, and the imported containers are temporarily stacked in front of the wharf during unloading to speed up the loading and unloading operations of the ship.

sea freight

Container yard
A place where heavy or empty containers are handed over, kept and stacked. In some countries, container yards are not divided into front yards or rear yards, which are collectively referred to as yards. The container rear yard is an integral part of the container handling area. It is the place where the FCL of the container transportation "on-site" handover method is handed over (actually, the handover is carried out at the "gateway" of the container unloading area).

Empty container yard (van pool)
A site dedicated to the collection, storage, storage or handover of empty containers. It is specially set up when the container handling area or the transfer station yard is insufficient. This kind of yard does not handle heavy box or cargo handover. It can be operated independently, or it can be set up outside the area by the container handling area. Some capitalist countries, operating such empty container yards, must declare to the shipping association.

Container freight station
The place where the ship and cargo parties handle the handover for the packing and unpacking of the LCL cargo. The carrier can only entrust the operator of one container freight station in a port or inland city. It handles the following main business on behalf of the carrier:
(1) Tally and handover of LCL cargo.
(2) If there is any abnormality in the inspection of the appearance of the goods, an annotation shall be processed.
(3) The stowage and packing of the LCL cargo.
(4) Unpacking and storage of imported unpacked goods.
(5) Seal and issue a station receipt on behalf of the carrier.
(6) Handle various documents and preparations.

The maximum compensation amount that the carrier should bear in the event of cargo damage during container transportation. Limitation of liability for LCL shipments is the same as for conventional shipments. Compensation for FCL is based on some current international precedents. If the number of pieces of goods in the box is not listed on the bill of lading, each box is used as a claim calculation unit. If the number of pieces in the box is listed on the bill of lading, it is still calculated according to the number of pieces. If the damage and loss of the goods are not carried out by sea, but occurred during inland transportation, the maximum compensation amount for land transportation shall be handled. If the container is owned or provided by the shipper, in the event of loss or damage, the responsibility for the loss or damage is indeed the responsibility of the carrier, and it should also be regarded as a claim calculation unit.

/ By tjchinafreight ivy / Shipping

Container Rental Guide

Why rent a container?

Are you looking for a specific period container? Do you have items or items that you want to store in containers to protect them from damage? Do you want the flexibility to rent containers at different points in time? If the answer is yes, then renting a container is ideal for you. Container leasing gives you flexibility in how you use your containers and how you plan your budget. Buying one, on the other hand, increases your liability and costs.

Here are the different types of container rentals that we will be covering in this blog:

1.Master lease
They are also commonly referred to as short to medium term leases. They fall into the full-service rental category with no cap on the minimum or maximum number of containers. The lease term is variable and the lessor is responsible for the maintenance, repair and relocation of the container. The agreement also involves an accounting system that includes debits and credits between the parties based on the condition of the containers at the time of their return. The lessor must undertake the allocation of the containers to meet the needs of the lessee. Therefore, it is important to ensure a stable supply of empty containers at the pick-up point. The master lease agreement sets out the main conditions such as the rental cost per day, the types of containers that can be disposed of, the number of containers to be used in each warehouse, the collection and delivery centers, payment terms, etc. The lessee has no obligation to use the container before picking up the container from the yard, and the contract takes effect when the lessee picks up the container from the yard. A separate individual contract is signed for each container collected under the Master Lease Agreement.

2.Long-term lease
Far less flexible than a master lease, long-term leases are a favorite of many rental companies. The duration of the contract is fixed. As well as a certain number of containers and delivery schedule. This leaves the leasing company with nothing to do once the container is signed for.

The lessee bears the cost of repairs, maintenance and relocation. Although definitions of terms vary, most leasing companies define long-term leases as 5 to 8 years. For long-term leases, the containers are usually brand new. This is why many long-term rental agreements come with negotiable terms. The clause allows rental rates to be negotiated after a few years based on depreciation and market fluctuations.

3.One way rental
They are also known as one-way rental agreements, and containers can be picked up at one location and dropped off at another. Both parties benefit from such one-way leasing arrangements due to operational rationalization and cost reduction. It is suitable for different regional requirements of customers and has the added benefit of saving on relocation costs.

4.Short-term rental
Also known as spot market leases, they are subject to market conditions dictated by supply and demand dynamics. Such leasing arrangements typically occur during temporary demand surges, which may be cyclical or sudden. Because of this market volatility, leasing companies prefer not to keep large inventories of such containers to meet short-term rental demand, to avoid the possibility of them being underutilized for an extended period of time. But careful planning and forecasting can handle unforeseen surges in demand. Maintenance, repair and relocation tasks are undertaken by the lessee. Aside from the higher cost, the one setback here is that you have to adhere to the minimum time to use the container. Usually leasing companies do not want to rent out containers for less than 6 months.

Transaction speed is another important issue for businesses to consider. Rental companies are also on the platform. Given the unbalanced nature of the world economy and trade, the number of containers is unbalanced.

/ By tjchinafreight ivy / Shipping

China-Thailand Customs Sign AEO Mutual Recognition Action Plan

On March 25, the "Action Plan of the General Administration of Customs of the People's Republic of China and the Thai Customs Administration on the Mutual Recognition Arrangement of "Accredited Operators" was signed online. The first AEO Mutual Recognition Arrangement Action Plan signed by member countries' customs.

Sun Yuning, deputy director of the General Administration of Customs of China, and Jizhana Xinushan, deputy director of the Thai Customs Department, signed on behalf of both parties. Sun Yuning said that the signing of the AEO Mutual Recognition Action Plan between the customs of China and Thailand is another pragmatic achievement of the customs cooperation between the two countries, marking the beginning of a new chapter in the AEO cooperation between the two sides.

China and Thailand have had close economic and trade cooperation for a long time. China has been Thailand's largest trading partner for many years, and Thailand's largest export market for agricultural products; Thailand is China's third largest trading partner among ASEAN countries. In 2021, the total bilateral trade volume between China and Thailand exceeded the US$100 billion mark for the first time, reaching US$131.18 billion, a year-on-year increase of 33%. During the same period, there were 83,000 Chinese enterprises engaged in bilateral trade between China and Thailand, of which there were more than 2,300 high-level certified Chinese enterprises engaged in import and export business with Thailand, with an import and export volume of about 143 billion yuan, accounting for about 143 billion yuan in imports and exports from China to Thailand. The total is nearly two percent.

According to the "Action Plan", China-Thailand Customs will speed up the negotiation on various issues of the AE0 mutual recognition arrangement, strive to realize China-Thailand AE0 mutual recognition as soon as possible, and effectively make the China-Thailand AEO mutual recognition cooperation a model of customs cooperation among RCEP member states.

China and Thailand have had close economic and trade cooperation for a long time. China has been Thailand's largest trading partner for many years, and Thailand's largest export market for agricultural products; Thailand is China's third largest trading partner among ASEAN countries. In 2021, the total bilateral trade volume between China and Thailand exceeded the US$100 billion mark for the first time, reaching US$131.18 billion, a year-on-year increase of 33%. During the same period, there were 83,000 Chinese enterprises engaged in bilateral trade between China and Thailand, of which there were more than 2,300 high-level certified Chinese enterprises engaged in import and export business with Thailand, with an import and export volume of about 143 billion yuan, accounting for about 143 billion yuan in imports and exports from China to Thailand. The total is nearly two percent.

According to the "Action Plan", China-Thailand Customs will speed up the negotiation on various issues of the AE0 mutual recognition arrangement, strive to realize China-Thailand AE0 mutual recognition as soon as possible, and effectively make the China-Thailand AEO mutual recognition cooperation a model of customs cooperation among RCEP member states.

AEO is the abbreviation of Authorized Economic Operator, that is, "authenticated operator". It is advocated by the World Customs Organization. The customs will certify enterprises with high credit status, law-abiding and level, and provide preferential customs clearance facilities to certified enterprises. of a system.

Since the implementation of the AEO system in 2008, China Customs has been vigorously promoting the international mutual recognition of AEO, focusing on improving the level of domestic and overseas customs clearance facilitation of Chinese enterprises, reducing the customs clearance cost of enterprises, and enhancing the competitiveness of enterprises in the international market. Up to now, China Customs has signed AEO mutual recognition agreements with 22 economies such as the European Union and Singapore, covering 48 countries (regions), and the number of countries (regions) in mutual recognition ranks first in the world. Among them, there are 32 countries jointly building the "Belt and Road", 5 RCEP member countries and 13 Central and Eastern European countries.

/ By tjchinafreight ivy / Shipping

Shanghai’s export business has the latest adjustment!

The Shanghai Epidemic Prevention and Control Office issued a notice deciding to carry out a new round of dicing and grid nucleic acid screening across the city. Starting from 5:00 on March 28, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary.

•The first batch, Pudong, Punan and adjacent areas (including the whole area of ​​Pudong New Area, the whole area of ​​Fengxian District, the whole area of ​​Jinshan District, the whole area of ​​Chongming District, Pujin Street, Pujiang Town of Minhang District, Xinbang Town and Shihu Lake of Songjiang District Dang Town, Maogang Town, Yexie Town) first implemented the lockdown and carried out nucleic acid screening, and the lockdown was lifted at 5:00 on April 1.

• For the second batch, starting from 3:00 on April 1st, according to the principle of stubble promotion, the Puxi area will be closed and controlled, and nucleic acid screening will be carried out, and the closure will be lifted at 3:00 on April 5th.
At present, some logistics companies in the first batch of closed and controlled areas have issued a notice to suspend the service of entering warehouses and receiving goods, and will resume at 5:00 on April 1, 2022.

Shanghai Port operates normally and maintains 24-hour operation
In terms of ports, SIPG issued a notice to customers, stating that at present, all production units in Hong Kong will maintain 24-hour operations except for the impact of extreme bad weather.

Shipping company operation adjustment notice

aerial view port at shanghai

From 5:00 on the 28th, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary. All enterprises in the closed area have implemented closed production or work from home. The first batch of logistics enterprises in the closed area have issued a notice to suspend the receipt and delivery of goods into the warehouse. Shipping companies: Maersk, COSCO, Hapag-Lloyd, Evergreen and Mason have issued business adjustment notices one after another.

1. Maersk

Maersk emphasizes:

Some warehouses in Shanghai have been closed since March 28 until further notice. A list of open warehouses is attached to this announcement. As the Pudong and Puxi areas of Shanghai are in full lockdown until April 5, trucking services in and out of Shanghai will be severely affected by 30%. All warehouses in Shanghai will remain closed from March 28 to April 1.
The air freight business of goods from existing warehouses in Shanghai remains normal. However, new cargo acceptance will be affected due to first mile deliveries and human resource constraints. The Shanghai counter will be closed from March 28 until further notice.

2. COSCO Shipping Lines

According to the needs of the new crown pneumonia epidemic prevention and control in Shanghai and surrounding areas, COSCO SHIPPING Lines Shanghai and surrounding service organizations (including: Shanghai area, Wuxi operation area, Jiangsu and Anhui operation area, Suzhou operation area, northern Jiangsu operation area and northern Zhejiang operation area) All of them have adopted remote office methods, and will continue to provide customers with stable and reliable services during the epidemic control period.

Other shipping companies have also released relevant adjustments. If you want to know more, you can check the adjustment notice on the corresponding shipping company platform.

/ By tjchinafreight ivy / Shipping

Biden administration re-exempts 352 tariffs on Chinese goods

The U.S. government announced it would restore tariff exemptions for 352 Chinese products that were first hit with punitive tariffs in 2018 when then-President Donald Trump launched a trade war with Beijing.

"Today's decision was made after careful consideration of public comments and consultation with other U.S. agencies," the U.S. Trade Representative (USTR) said in a statement Wednesday.
In a statement, the Office of the US Trade Representative said the exceptions were retroactive to October 12 last year and extended through the end of 2022.

The exemption expires at the end of 2020, but President Joe Biden's administration began seeking comments last October on which of the 549 eligible Chinese products should again be excluded from the tariffs.

The list released by the USTR includes industrial parts such as pumps and electric motors, certain auto parts and chemicals, backpacks, bicycles, vacuum cleaners and other consumer products. Those goods account for about two-thirds of the tariff-exempt goods that expire at the end of 2020. Goods exempted from duties include certain types of consumer goods such as electronic components, bicycle parts, motors, machinery, chemicals, seafood and backpacks.

A spokesman for China's Commerce Ministry said on Thursday that the U.S. decision is conducive to the normalization of trade in these products and hopes that bilateral trade relations can return to a normal track.

"Amid soaring inflation and challenges to the global economic recovery, we hope that the U.S. will remove all tariffs on Chinese products as soon as possible to safeguard the fundamental interests of Chinese and U.S. consumers and producers," spokesman Shu Jueting told reporters. .

The Trump administration initially approved more than 2,200 tariff exemptions to ease the burden on certain industries and retailers. Most were allowed to expire, but 549 were extended for a year and these expire at the end of 2020.

In October, U.S. Trade Representative Katherine Tai began reviewing whether to reinstate the 549 waivers as part of her strategy to confront China over trade practices.
Since then, a series of virtual meetings with her Chinese counterparts have done little to improve China's performance under Trump's "phase one" trade deal with Beijing.

/ By tjchinafreight ivy / Shipping

These common Chinese herbal medicines are still dangerous chemicals!

Cinnabar, borneol, turpentine, these commonly used Chinese herbal medicines included in the "Pharmacopoeia of the People's Republic of China" (2020 edition), can you think that they are still dangerous chemicals? Let's take a look at their little-known "two sides" together.

Dangerous chemicals in common Chinese herbal medicines

1. Borneol

Borneol, also known as card brain, orange slice, borneol, is obtained by extracting the resin and volatile oil of Dipterocarpaceae plant borneol. It is a white crystalline powder or flake crystal. , spicy and cool. It can be used as medicine to open the orifices and refresh the mind, clear heat and relieve pain.

Borneol is a hazardous chemical listed in Item 1232 of China's "Catalogue of Hazardous Chemicals" (2015 Edition), the product name is "2-Citol", the CAS number is: 507-70-0, and its hazardous categories include: flammable solids , specific target organ toxicity, etc.
At the same time, in the United Nations "Recommendations on the Transport of Dangerous Goods" (TDG), borneol is listed as Class 4.1 dangerous goods (flammable solids), the United Nations number (UN number) is 1312, and the recommended packing group is Class III .

2. Cinnabar
Cinnabar, also known as cinnabar, cinnabar, red dan, and mercury sand, is a natural ore of mercury sulfide, mainly containing mercury sulfide, as well as realgar, apatite, asphaltene and other substances. The appearance is granular or flake-like, bright red or dark red, and shiny. Weight, brittleness, flakes are easily broken, powdery ones have a shimmering luster, slight gas, and light taste. It can be used medicinally to clear the heart and calm convulsions, soothe the nerves and improve the eyesight.
In the "Catalogue of Hazardous Chemicals" (2015 edition), cinnabar is listed as item 1286, the chemical name is "mercury sulfide", the CAS number is: 1344-48-5, and the hazard categories include: acute toxicity, specific target Organ toxicity, harm to aquatic environment, etc.
At the same time, in the UN Recommendations on the Transport of Dangerous Goods - Model Regulations (TDG), cinnabar is listed as Category 6.1 dangerous goods (toxic substances), the UN number is 2025, and the recommended packaging category is Category II.

3. Turpentine
Turpentine oil is an oleoresin exuded from several plants of the Pinaceae genus, and the volatile oil extracted by distillation or other methods, the main component is terpenes. It is a colorless to slightly yellow clear liquid, with a specific odor, long-term storage or exposure to the air, the odor will gradually increase, and the color will gradually turn yellow. It can relieve muscle pain, treat joint pain and neuralgia, and apply it to the affected area when sprained. It can also promote blood circulation and reduce swelling.
In the "Catalogue of Hazardous Chemicals" (2015 edition), turpentine is listed as item 2098, CAS number is: 8006-64-2, and the hazard categories include: flammable liquid, skin corrosion, serious eye damage, skin cancer, Inhalation hazard, hazard to aquatic environment, etc.
In the United Nations "Recommendations on the Transport of Dangerous Goods, Model Regulations" (TDG), turpentine is listed as Class 3 dangerous goods (flammable liquids), the United Nations number is 1299, and the recommended packing group is Class III.

It can be seen from this that borneol, cinnabar, turpentine, etc., in addition to the attributes of Chinese herbal medicines, also belong to the hazardous chemicals listed in the "Catalogue of Hazardous Chemicals". Then, when the above-mentioned Chinese herbal medicines are exported as commodities, what customs supervision requirements need to be met? Woolen cloth?

Customs supervision requirements

Regulatory Requirements for Exporting Hazardous Chemicals
The "Regulations on the Safety Management of Hazardous Chemicals" stipulates that hazardous chemical production enterprises shall provide chemical safety technical instructions consistent with the hazardous chemicals they produce, and affix the corresponding chemical safety labels on the packaging. The packaging of hazardous chemicals shall comply with the requirements of laws, administrative regulations and rules and the requirements of standards, and the type, specification, method and single quality of the packaging shall be compatible with the nature and use of the hazardous chemicals contained.

According to the "Announcement on Issues Concerning the Inspection and Supervision of Imported and Exported Hazardous Chemicals and Their Packaging" (Announcement No. 129 [2020] of the General Administration of Customs), the customs shall Inspection of the product and its packaging.

Then the cinnabar, borneol, turpentine, etc. listed in the catalogue of hazardous chemicals, no matter whether the customs supervision condition corresponding to the HS code is "B", and whether the inspection and quarantine category is "N", it is necessary to declare the origin of hazardous chemicals before exporting. And export dangerous goods packaging use appraisal, inspection and appraisal pass the electronic account book and packaging use appraisal result sheet before export.

/ By tjchinafreight ivy / Shipping

Do you know all these surcharges for shipping?

Due to various reasons of the ship, cargo, port and other aspects, the ship party increases expenses or suffers economic losses when transporting goods. In order to compensate for these expenses or losses, the ship party stipulates additional charges in addition to the basic rate. Call Surcharge or Additional.
There are many types of surcharges, and as some circumstances change, new surcharges may be removed or established. This article is to sort out the more commonly used shipping surcharges at present, hoping to help you better understand the shipping surcharges (so as not to be pitted).

emergency fuel surcharge
The last bunker-related line in this list of ocean surcharges is the emergency bunker surcharge. This fee is imposed by the carrier when fuel prices rise sharply. Because it makes it more expensive to run ships and move containers around the world.
This is another surcharge that you can't stop.

Comprehensive rate increase surcharge GRI
The full name of GRI is General Rate Increase. It is generally used on South American routes and American routes. Due to various reasons such as ports, ships, fuel oil, cargo or other aspects, the shipping company's transportation costs have increased significantly. In order to compensate for these increased expenses, the shipowners add a comprehensive rate increase surcharge.

Peak Season Surcharge PSS
The full name of PSS is Peak Season Surcharge. This fee is generally charged by many shipping companies for excuses when the freight is busy in the peak season, which is somewhat similar to the price increase in my country's "Spring Festival". April to November each year is generally the peak season for world freight.

Terminal handling fee THC
The full name of THC is Terminal Handling Charge. It can be further divided into OTHC-Origin Terminal Handling Charge, which is the terminal operation fee at the port of departure and DTHC-Destination Terminal Handling Charge, which is the terminal operation fee at the destination port.

Out of spec
If the cargo is oversized, it means that the cargo cannot fit into the hexagonal container due to its size. In this case, you'll have to pay an oversize fee because the cargo will take up more space, require extra material to secure, and mean less space to stack the containers.

Origin Receipt Charge ORC
The full name is Original Receiving Charge local receiving fee/origin receiving fee/origin receiving fee. This fee is more complicated, and it is both different and related to the terminal operating fee THC. ORC is only available in southern China, mainly in Guangdong ports, while THC is available in all ports (including those in Guangdong). There is only one charge for ORC and THC - if you charge ORC, you don't charge for THC. If you receive THC, you will not receive ORC again.
ORC is specially designed for shipping from various ports in southern China, and the destination ports are these ocean routes such as North America, Central and South America, Europe and North Africa. Ports in southern China to other destination ports, such as Southeast Asia, are the same as ports in other regions, and only collect THC.

Overload surcharge
There is no way to bypass the heavy load surcharge if you are shipping unusually heavy shipments. This is a charge because heavy cargo is more difficult to load and unload than light cargo. However, these types of cargo also require specialized equipment such as cranes. A surcharge helps make up for this.

Port Congestion Surcharge PCS
The full name is Port Congestion Surcharge. When the port is crowded or particularly busy, the waiting time and schedule of the ship will be extended, and the port berthing fees such as tugboat fees may also increase, which will cause a substantial increase in transportation costs. In order to make up for this cost loss, the shipping company will charge the shipper. Port congestion surcharge.

Container Imbalance Surcharge CIC
The full name of CIC is Container Imbalance Charge, sometimes called Container Imbalance Surcharge. This fee is a surcharge imposed by the shipping company in order to make up for the cost of shipping empty containers due to the imbalance of trade volume or seasonal changes resulting in the imbalance of cargo flow and containers.

/ By tjchinafreight ivy / Shipping

The country’s truckers have been on strike for two weeks, severely disrupted supply chains, and hit production and manufacturing.

Spanish drivers have been on strike for up to two weeks over rising fuel costs, severely disrupting the country’s supply chain and hitting production and manufacturing in Spain.

 

After more than 12 hours of negotiations on Thursday, March 24, the Spanish government has reached a tentative agreement with a major transport union to provide fuel subsidies for striking truck drivers.
However, as is common in Spanish trade union politics, there were several smaller and different union organisations organising the transport lockout, which rejected the proposal and continued the strike into its third week.

To this end, the Spanish government this week announced a financial package of 500 million euros in direct assistance to the road transport sector, which focuses on reducing taxes on "specialty diesel". The package will be approved by the Spanish Council of Ministers on March 29.

However, the financial package announced by the Spanish government failed to end the drivers' strike.

Three Spanish unions, which mainly represent small businesses, have joined the Platform for Defending the Trucking Industry, an informal association of truck drivers and owner-operators who were the main drivers of the two-week strike.

As the strike action nears its third week, a ripple effect is being felt on roads, supermarkets and restaurants across Spain. Madrid, Valencia region, Basque Country, Andalusia, Navarra, Galicia, Murcia and other parts of Spain have been reported as truckers block major roads, ports, industrial areas and intersections Traffic jams for several kilometers.

Supermarket shelves are empty, with shortages of fruit and vegetables, milk, cheese and other dairy products, especially meat and fish. The dairy industry has been severely affected, with thousands of litres of milk spoiling in factories without trucks moving across the country.

Bars and restaurants across Spain are also feeling the effects of the strike action. Many were forced to change or adjust their menus and even raise prices to make up for some of the losses.

As of Friday morning, the situation remained fluid and it was unclear whether the government would actually negotiate with the striking truck drivers, with demonstrators in Madrid calling for the resignation of Transport Minister Raquel Sanchez as a condition of ending the strike.

This week, food processing multinational Danone warned of "imminent supply disruptions" due to a strike by truckers, and that if a solution cannot be found quickly, it will have to make major decisions and temporarily suspend four of its subsidiaries Activities of a Spanish dairy and three mineral water plants.

Yesterday, it was reported that the company had halted production at one of its breweries, and Dutch brewer Heineken also warned that it may have to cut production due to a lack of some supplies.

The country's truckers have been on strike for two weeks, severely disrupted supply chains, and hit production and manufacturing.

German supermarket chain Lidl has closed two stores in Asturias due to supply difficulties, and other retailers including Aldi have also reported shortages of certain products, such as milk, flour and oil.

The prolonged strike has raised fears that supermarket shelves will be empty and threatens road exports of Spain's fruit and vegetables during a crucial time of the year for the market.

The strike also affected the auto industry, with assembly lines disrupted by strikes by truckers and roadblocks, local media reported. Production at Volkswagen's Pamplona plant has been hampered by a supply shortage and Ford has proposed temporary layoffs for the second quarter as it struggles to secure deliveries of critical components and microchips. Opel and Mercedes were also forced to scale back their operations.

The Spanish government is believed to have mobilized 24,000 police officers to help escort truck drivers who were not involved in the strike.

/ By tjchinafreight ivy / Shipping

VLCC again records its worst deal ever

Freight rates for very large crude oil tankers (VLCCs) on major routes have been unusually weak, again recording their worst trading ever, with owners willing to accept only four-digit daily rates.

Under such circumstances, according to data from the Baltic Exchange (Baltic Exchange), the VLCC equivalent time charter equivalent rates (TCE) assessed by the agency continued to fall by $800 this Friday to -28354 USD/day! Obviously, this figure is lower than the record low of 27,893/day set on March 10.

Shipping brokerage firm Howe Robinson said in this week's market report that the Middle East VLCC route has directly "kneeled", and we have seen a large number of charters hitting new lows.

In addition, the fall in rent levels contrasted sharply with the rise in fuel prices. The rise in fuel oil prices has kept shipowners' earnings in a negative range.

According to Tankers International data, 7 VLCCs were booked on Thursday, and one of the 299,999dwt Ascona was the highest lease level, but the TCE was only US$8,342 per day. The charterer was Unipec UNIPEC, from West Africa to China. , the expected loading date is mid-April.

The lowest was - $5738/day for the 320,475 dwt Maran Canopus (built 2007) owned by Maran Tankers, scheduled to be loaded for Vietnam's NSRP in the Middle East Gulf in early April. The round is about to be docked for the third time this year and should be repaired.

However, figures from Tankers International show that all of those leases are ultimately expected to face losses.

Ascona was the only one successfully leased on the same day for the West Africa route. The other two 303,120-dwt Front Empire and 318,440-dwt Astro Chloe were not concluded.

"A charter that doesn't close will also end up causing more trouble for owners," Howe Robinson said. "However, as more and more owners refuse to execute long voyages at such low prices, we are seeing Owners are trying to get higher prices.”

Overall, the Baltic Dirty Tanker Index, the BDTI index rose 19 points to 1112 at the end of the week. The rise was mainly due to the TCE of Aframax vessels rising by $1,934 to $28,672/day, although suezmax vessels also fell by $1,530/day to $34,401/day.

The rise of aframax was mainly due to the increase of $16,710 on the TD17 Baltic-UK/Continental route, which closed at $133,657/day this week. This route, as well as the TD6 Black Sea to Mediterranean suezmax route, continues to rise, mainly because both routes involve Russian deals.