If you’re wondering what bulk and break bulk cargo is, you will find all information right here.

This guide covers everything, from definition, classification, to shipping, among other vital aspects.

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

What is Bulk Cargo?

In shipping, a bulk cargo is any good shipped unpackaged, not inside pallets or boxes, and in large quantities.

The commodities can either be in liquid, granular, or solid form. Examples of bulk cargo include wheat, fertilizer, coal, natural gas, and oil.

Generally, bulk cargo comprises of the goods we need for our day to day use.

What are the Major Bulk Cargoes in International Shipping?

There are two major categories of bulk goods: liquid and solid bulk goods

Solid Bulk Cargo

There is a variety of Solid or dry bulk cargo ranging from produce to raw materials.

Importantly, all goods falling in this category are homogenous and are unpacked.

Mostly, they are stowed in ships using silos, cranes, conveyor belts or hopers.

These type of goods usually need to be kept dry during the whole transportation period.

Examples of solid bulk cargo include sugar, cocoa, coffee, iron ore, fertilizer, cement, coal, soy, and wheat.

Notably most agricultural product used in the global food industry falls under this category.

During transportation of Solid bulk cargo, the ‘Dangerous Good’ label is often applied.

This is to ensure careful loading and transportation of the goods.

Poor loading may lead to the shifting of the commodities to one side of the ship causing instability and eventual accidents.

Solid Bulk Cargo are transported in Bulk Carriers which ensure that all the advisable transportation standards are met.

Liquid Bulk Cargo

Liquid Bulk Cargo, comprises of any free-flowing commodity loaded and unloaded from the ship using pumping stations or pipelines.

This type of cargo is normally classified into four groups:

• Hazardous liquids – Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG). These liquids are generally harmful to organisms and the environment.
• Non-Hazardous Liquid – Such as cooking oils, vegetable oils, juices, milk, and any other liquid that does not pose any harm to an organism and the environment.
• Edible Liquids – These are non-hazardous liquids that can be consumed without causing substantial harm. Examples include edible oil, wine, juices, milk, etc.
• Non-edible liquids – These liquids fall under both the Hazardous (LPG and LNG), and non-hazardous category (such as aqueous dyes and glycerin).

Liquid Bulk Cargo are transported in specialized vessels with tankers to hold the commodities.

What does Break Bulk mean in Shipping?

Contrary to bulk cargo, break bulk cargo is unitized mostly in form of drums, crates, pallets or bags.

Also, break bulk can be non-unitized, for example steel or vehicles. Generally, break bulk cargo is used when to refer to cargos that can be quantified.

Break bulk can be used to refer to goods which cannot fit in the largest container. Consequently, they are subdivided into smaller units and shipped collectively.

What is the History of Break Bulk Shipping?

Prior to the advent of containerization, before the 19^th century, shipping was quite tedious and involving.

The process of shipping involved organizing commodities to fit in the vessel’s storage space.

The term break-bulk was coined to mean breaking bulk cargo in to smaller quantities.

Notably, before the container era, all commodities were shipped as break bulk.

Specialization

After the world war, the narrative changed. Specialization erupted with various commodities having customized vessels for their transportation.

During this time, goods were packed in bales, which were loaded and unloaded by human labor.

This was expensive considering a large workforce required.

Also, all the cargo operations including sorting, loading, clearing, and loading were time consuming.

This era is termed as the ‘man load era.’

Shift to Unit Load

In ‘50s there was a shift from ‘man load’ to ‘unit load’.

This era was characterized by increased specialization of vessels and the use of machines to load and unload commodities.

Such machines include stackers, grab cranes, bulldozers, and conveyor belts.

Containerization

In 1956, Malcom Mclean, an American transport entrepreneur, pioneered the usage of intermodal shipping container.

However, the use of containers picked up at a slow rate with the first use of container for international shipping occurring 10 year later (1960).

Since then, the use of containers for shipping has developed rapidly. In the 21^st Century, about 90 percent of non-bulk commodities are transported in containers.

Containerization on Break Bulk Shipping

Although it may appear that containerization has negatively affected break bulk shipping, there is more to it.

Containerization has only led to the evolution, if not modernization, of break bulk shipping. Currently, break bulk shipping is used to transport bulk goods.

Bulk goods are the goods that cannot fit in the largest container size (40ft) and weigh over 35,000 Kg.

Why is Breaking Bulk Important?

Not all commodities are non-bulk and can be shipped in containers.

Consequently, there is a need for an alternative means to ship such commodities since they are essential.

Breaking bulk provides the required alternative.

You can break the bulk cargo into sizeable units that can then be shipped collectively.

What is the Procedure for Breaking Bulk Cargo?

There are different types of breaking bulk cargo.

First, let us look at the procedure of breaking bulk for commodities such as cocoa:

i. Packing the commodity in sacks, commonly 68 Kg sacks

ii. Transporting the sacks to the airport

iii. Loading the sacks into slings (these are pallets with lifting slings). A sling can accommodate 30 to 35 sacks

iv. Arranging and grouping the slings next to each other depending on the capacity of the onboard crane.

v. As the ship’s lifts one sling aboard, more slings are replaced into the vacated space until when ship’s hold is full.

Note: The groupings of the slings will remain intact during the entire transportation. This is to ensure easy offloading when the cargo reaches its port of destination.

Also, it reduces the risk of damage to the commodity.

For other break bulk commodities, the below procedure is applicable:

i. Manual assembling and classification of a cargo at a warehouse, such a cartage broker’s or manufacturer’s warehouse.

ii. Transferring of the cargo to surface transport vehicles.

iii. The vehicles transport the cargo to a transit shed found in the dock area. Transit shed has storage facilities to hold the cargo.

iv. The cargo is then moved from the transit shed to the dockside.

v. From the dockside the cargo is placed into the ship’s hold.

vi. Upon arrival at the port of destination, a reverse procedure is applied.

Note: All of these cargo handling procedures involve use of manual labor. This in turn makes the break bulk shipping quite costly.

To counter the uneconomical backlash of break bulk, countries such as the US have done away with the transit shed. This implies that the goods move directly from the warehouse to the ship.

How is Break Bulk Cargo Calculated?

Measurement of a break bulk cargo is in terms of the greatest length, width and height of the whole shipment.

For weight, the break bulk cargo is weighed per freight ton which is an equivalent of 1 cubic meter or metric ton.

Importantly, freight charges are calculated in terms of the measure and not the weight. Take this for example:

A break bulk cargo has a gross mass of 2 metric tons, with the length, width, and height measuring 2.5 meters, 1 meter, and 2 meters respectively.

The shipping line charges a tariff of USD 110. The freight amount will be:

• 5 x 1x 2=5meters
• 5 x 110 = USD 550

Note:  We did not use the metric tons for calculation but instead used the product of the measurement (Length x Width x Height)

What is Liquid Bulk Cargo in Shipping Terms?

Liquid bulk cargo is a shipment in free flowing form that is not packaged or in non-unitary state and is transported in special vessels known as tankers.

This type of cargo ranges from consumable commodities such as cooking oil and juices, to non-consumable products like gasoline and crude oil.

What is Break Bulk Fee?

Break bulk fee can be defined as the amount charged for converting a bulk cargo into unitary state or measurable quantities.

The bulk cargo can be packaged, drummed, or palletized so as to fall in the break-bulk cargo category.

What is Unpacked Bulk Cargo?

Unpacked bulk cargo is simply the opposite of the break bulk cargo.

This type of cargo is loaded un-unitized in the ship’s hold.

What are the Two Types of Unpacked Bulk Cargo?

Unpacked bulk cargo are subdivided into two main categories: solid/dry bulk and liquid bulk.

Solid/Dry Bulk Cargo

These can either be in granular form or any other solid state.

Examples of solid/ dry bulk include grain, coal, minerals, iron ore, and metals.

Liquid Bulk Cargo

These are bulk cargoes in their free flowing or liquid state.

Liquid bulk comprises of commodities such as crude oil, gasoline, chemicals, LNG, and petroleum

What Types of Goods can be Transported on Break Bulk Cargo?

As the name suggests, any good that can break easily can be transported on break bulk cargo.

The good should be able to be packaged in crates, pallets, drums or racks.

Examples of such goods include: wood, paper, bags of cocoa, machinery parts, steel rolls etc.

How can you Transport Bulk Cargo?

Since bulk cargo exceeds the container limit, the use of containers to ship such cargo is ruled out.

If the bulk cargo can be subdivided and unitized or packaged, then you can transport them as break bulk shipment.

However, if the former is not possible, you will have to transport is a bulk cargo.

This will involve loading the entire unpackaged bulk cargo into a specialized vessel referred to as a Bulker.

The Bulker has specialized compartments on its hold to accommodate the bulk cargo.

What is a Dry Bulk Terminal?

Dry bulk terminal can simply be described as the loading and unloading platform during the shipping process of dry bulk cargo.

Importantly, the efficiency of a dry bulk terminal is greatly dependent on the technology employed.

The more sophisticated the technology, the faster the loading and unloading of the dry bulk cargo.

What is Project Cargo?

Sometimes referred to as project logistics or project forwarding; project cargo is the transportation of time-bound commodities that are either high value, large, complex or require heavy lifting.

Such commodities may include break-bulk cargo but not bulk cargo.

What is the Difference Between Project Cargo and Break Bulk Cargo?

Below are the major differences between a project cargo and a break bulk cargo:

• Unlike break bulk cargo which is mostly transported by sea, project cargo can be transported by sea, water, and land.
• Also, project cargo is time-bound with stipulated delivery dateswhich is not the case with break bulk cargo.

What is Meant by Solid Bulk Cargo?

Solid bulk cargo is any unpacked commodity that is not in liquid or gaseous form and is loaded directly to a vessel (Bulker) in large quantities.

The cargo can be in form of granules, particles or any other material. Notably, solid bulk cargo are normally uniform in composition.

Examples include: minerals, iron ore, grain, coal, etc.

Who is Responsible for Breaking Bulk Cargo?

Depending on the agreement with the freight forwarder you can either break the bulk cargo yourself or leave the freight forwarder to handle it.

In some cases, the seller or exporter breaks the bulk cargo by him/herself for easy distribution to various individual consignees.

What is Handymax Bulk Carrier?

Handymax is a bulk carrier with a general deadweight capacity of between 35,000 – 50,000 DWT.

However, modern handymax have a size ranging from 52,000 to 58,000 DWT.

Mostly, these bulkers are used to carry solid/dry bulk commodities such as coal, iron ore, cement, grains, and fertilizer.

However, they can also be small-sized oil tankers.

Importantly, handymax vessel is among the smallest bulk carriers with a typical length of 490 – 650ft (150 to 200m).

Additionally, it has 4 cranes with a lifting capacity of 30 metric tons and 5 cargo holds.

The on-deck cranes make them ideal for transportation of bulk commodities to less sophisticated ports.

How is Bulk Cargo Loaded into Shipping Vessels?

The loading of a bulk cargo is dependent on the type of the bulk cargo.

Discussed below is how both the liquid and solid bulk cargo are loaded.

Liquid Bulk Cargo

Most modern tankers load liquid cargo using discharge/ articulated arm loading systems which are usually found in the off and onshore loading and off-loading facilities.

The articulated arm usually connects to the tanker’s manifold (usually at the center of the ship), to load and offload the liquid bulk cargo.

Also, most tankers load oil at the sea oilfields using a system known as a Submerged Turret Loading System.

Using this system, the vessel is loaded from the bottom using sophisticated technology.

Dry/Solid Bulk Cargo

Majorly, solid bulk cargo are usually loaded to the Bulk carrier using grabbers.

There are two major types of grabbers: Grab for iron ore, and Belt Conveyor.

Loose bulk cargoes are loaded from a stock pile in the loading dock into a hopper in the ship’s hold.

Notably, when loading dry bulk cargo, it is important to ensure the commodity is evenly distributed.

Uneven distribution may lead to one side of the ship having more weight resulting to instability.

What is the Difference Between Handymax and Supramax Bulk Carrier?

Generally, both handymax and supramax are considered the smallest bulk carriers with a capacity of below 60,000 DWT.

The major difference between the two is that a handymax vessel has a capacity of between 35,000 to 50,000 DWT, while a supramax vessel has a capacity of between 50,000 to 60,000 DWT.

Conclusively, the supramax is a bit larger than the handymax, and almost the size of the panamax.

Also the close size proximity of supramax to panamax, makes it more desirable over handymax  as it is able to hold more cargo

What are the Hazards of Solid Bulk Cargo?

The major hazards of solid bulk cargo are:

• Ship instability when the solid bulk cargo is unevenly distributed. In the worst case scenario, this may lead to the ship capsizing.
• Risk of fire or explosion when transporting flammable solid bulk cargo
• Damages to parts of the bulk carrier if the solid bulk cargo is not appropriately loaded
• Cargo liquefaction

What is Bulk Cargo Liquefaction?

Bulk cargo liquefaction is the abrupt change of a solid bulk cargo to an almost liquid or fluid state.

Most bulk cargo that are at risk of undergoing liquefaction are minerals such as pyrites, fluorspar, nickel ore, etc.

At first the solid cargo may look dry during the loading. However, they might be harboring moisture within their particles.

During the transportation by sea, ship’s motions, wave impacts and engine vibrations may result to agitation.

Consequently, the commodity becomes compact forcing the transition from a solid state to a somehow fluid state.

What are the Effects of Bulk Cargo Liquefaction?

The liquefaction of a bulk cargo will result to the shifting of the cargo.

Consequently, this will result to the ship instability, damage of the ship structures, and eventually the capsizing of a ship.

Ultimately, bulk cargo liquefaction may lead to major losses and even death of the crew members on board.

Does Moisture Affect Bulk Cargo during Shipping?

Yes, moisture mostly affects dry bulk cargo during shipping. Notably, it is important to ensure that a dry bulk cargo remains dry throughout the shipping process.

A phenomenon that can occur during the shipping of a bulk cargo is the moisture migration.

This simply means that moisture moves from the warmer part of the cargo to a cooler part.

This happens when a part of the cargo is adjacent to a heat generating part of the ship.

Consequently, the part being heated becomes warmer forcing the moisture to migrate.

When this happens, the cooler part becomes more soggy leading to damage of the commodity.

How much does a Bulk Carrier Cost?

Estimating the cost of a bulk carrier is an uphill task unless you get a direct quotation from a supplier.

However, some recent sales, 2017 there about, in Singapore can give you a rough estimate cost.

A 16- year old 75,100 dead weight ton was sold for around $4.4 million.

Also, a 15-year old DWT Panama was price-tagged at $4.65 million.

What is Break BulkCargo Handling Procedure?

The loading, safe handling, and discharge of a cargo is ensured by the Chief Officer.

He/she can only ensure this after being provided with a cargo manifest which defines the cargo as either hazardous, heavy lift or valuable.

Below are some duties the Chief Officer has to ensure safe handling after receiving the cargo manifest:

• Come up with a suitable loading plan of the ship
• Carry out a stability assessment of the ship
• Give out orders to make the ship conducive. This include instructing the ship compartments be cleaned, and the interior including ventilations, ceilings, and floor be up to standard.
• Document on specific cargoes, such as livestock, valuables and hazardous commodities.
• Note any damaged cargo in the bill of lading.
• Dispatch all the relevant documentation including the loading plan to the relevant parties before the despatcher of the ship.

Note: All these duties of a Chief Officer during shipping of a break bulk cargo are aimed at ensuring the proper and safe handling of the cargo.

What are the Standard BreakBulk Cargo Rates?

As at 2015 heavy lift rates had fallen to $90 per ton, a significant difference from the $150 per ton in 2013.

A mismatch between the demand and shipping capacity has resulted to a downward pressure in the rates overtime.

Simply put, the increase in the amount of tonnage to be shipped as break bulk cargo has lowered the break bulk cargo rates.

What are the Disadvantages of Break Bulk Cargo?

The major drawbacks of break bulk cargo are:

• It requires extensive labor owing to the activities involved in shipping. Such activities include warehousing, packaging, loading, and offloading.
• Shipping break bulk cargo is also more expensive as it uses up more space.
• Moreover, the loading of break bulk cargo needs specialized and sophisticated equipment for efficiency.
• Security and safety is also a concern. During the bundling or packaging, some goods can cause bodily harm if handled inappropriately. Also, there is a risk of the goods being damaged or stolen.
• Unlike containerization, break bulk cargo does not offer special facilities such as refrigeration for perishable commodities.

What are the Packaging Methods for Break Bulk cargo?

There exists various packaging methods for break bulk cargo. Below are the major packaging methods:

Bags

This is commonly used for commodities such as grains, fertilizers, sugar, coconut, dried fruit, seeds, coffee, flour, raisins, salts, dried milk, dried blood, meal (copra, fish, seed, etc.), shells, etc.

The bags are only used to hold the contents together but do not guarantee protection from external damages.

Carton and Fiberboard boxes

Cartons and fiberboard boxes are economic and efficient making them the most preferred mode of packaging.

They provide some level of security from theft and loss.

Also, they can withstand typical shipping hazards.

Cartons can be directly put inside a container; or securely strapped on pallets if the cargo will have to be moved around.

· Wooden Cases

The use of wooden cases for packaging has been around for a while.

They are more expensive than cartons but ensure more protection to the enclosed content.

The most commonly used wooden cases are made from plywood.

·nWooden Crates

Unlike the wooden cases, wooden crates are not completely covered.

They are mainly used to facilitate storage and handling.

In some cases, carton and fiberboard boxes are placed inside wooden crates for reinforcement.

· Barrels

Barrels are majorly used in shipping liquids such as molasses, whisky, paints, etc.

Also some solids such as cement, scrap metals, cement, etc. can be enclosed within barrels.

· Lift Vans

These are specialized packaging material made of wood, containing metallic roofing, and lined on the inside with waterproof material.

They are mainly used to transport household goods such a cupboards, chairs, brassware, glassware, etc.

There are to be handled using forklifts.

· Pallets

When using pallets for a break bulk cargo, the commodities are strapped on the pallet.

What Documentation do you need to Transport Bulk or Break Bulk Cargo?

The important documentation you will need are:

• Bill of manifestation – which will outline the nature of the commodity being transported. Whether hazardous, valuable or heavy lift
• Bill of lading – which will give detailed information pertaining the shipment

Also, you will require relevant certification and clearances before you can freely transport your bulk or break bulk cargo.

Are Courier Services involved in Transporting Bulk and Break Bulk Cargo?

Both courier services and freight forwarders are actively involved in the transportation of bulk and break bulk cargo.

Since these types of cargo are part and parcel of shipping, almost all companies involved in shipping do transport them.

What is Break Bulk Warehouse?

Break bulk warehouse is where the bulk commodity is received and broken into smaller units for packaging.
What is the Difference Between Break-bulk vs Container?

Break bulk are individual units of a commodity transported in a ship while the container is a storage unit for materials being shipped.

Mostly, break bulk cargo are packaged and stand alone.

However, they can also be loaded inside a container.

That’s it – all information you need to know about bulk and break bulk cargo.

At Tj chinafreight we help you ship all type of cargo from China to any region globally.

Contact us today for your bulk and break bulk cargo shipping needs.

This guide has all information you’re looking for about bunker adjustment factor.

So, if you want to learn more about bunker adjustment factor, read this guide.

What is Bunker Adjustment Factor (BAF)?

As you know, oil prices are very volatile.

This fluctuation in oil prices can lead to losses for carriers.

Due to this volatility, ship owners and operators are unable to calculate the consistent operating cost for ships.

To cover them, ocean carriers charge Bunker Adjustment Factor commonly known as BAF.

Fuel Adjustment Factor and Bunker Surcharge are other names that are used to refer to this BAF.

BAF is an additional surcharge. It is charged per Twenty-foot Equivalent Unit (TEU) to the ship operators.

BAF represents some of the sea freight charges that are meant to address the volatile nature of fuel prices.

Early before, the Transpacific Stabilization Agreement (TSA) was responsible for the standardization of BAF.

TSA would not only set prices and but was also responsible for coordinating the behaviour of shipping lines.

Brent crude oil was being used as the basis.

However, after the resignation of Maersk Line back in 2018 who was a key member, TSA got disbanded.

As a result, shipping operators opted to set their own bunker surcharge independently.

This was under the close monitoring of the European Commission to make sure there was no collusion happening.

When IMO (International Maritime Organization) 2020 was introduced, this no longer happens.

The BAF cost calculation has changed to a more accurate and predictable one using the introduced formulas.

These new formulas contain components with the fuel price and its consumption.

What does Bunker Mean in Shipping

A bunker is best understood from the historical events that gave birth to the name.

Steam was originally the source of power in industries, both for locomotives on land and steamships in sea transport.

The steam power was generated when coal was fed into the furnaces.

The containers used to store this coal were called BUNKER.

Now that coal was common was used to fuel steamships, the name bunker became common with fuel.

To date bunker, is used to refer to fuel used in shipping operations.

Bunkering is the process of supplying ships with bunkers.

Their bunkers come in different types and there are other classifications for the different bunker types.

A few of them are Heavy fuel oil (HFO), Marine diesel oil (MDO), (Marine fuel oil (MFO), Marine gas oil (MGO), Intermediate fuel oil (IFO) just to mention but a few.

Why is Bunker Adjustment Factor Charged?

BAF are surcharges meant at safeguarding the carriers against the volatility of fuel oil.

These extra charges are enacted by carriers on the shipping rates for purpose of counteracting fuel price increase.

Whenever there is an increase in oil prices, the carriers will be required to evaluate and do calculations for any extra costs which we are calling BAF.

This helps in offsetting any of the significant fluctuations on the operational costs brought about by the increase in fuel prices.

It is worth noting that carriers are not allowed to come up with common agreements with regard to BAF surcharges all over the shipping industry.

The European Commission back in May 2019 made it clear that any attempt in doing this would be considered a violation of antitrust laws.

Therefore, surcharges may appear the same across all carriers. But the decisions are ultimately decided by each carrier internally.

How do you Calculate the Bunker Adjustment Factor?

For you to calculate BAF, you will need to take into account the trade factor as well as the fuel price.

Fuel price is taken as the average price of fuel in major bunkering ports across the world.

Trade factor is a reflection of the average fuel consumption in a given trade taken as a result of existing variables.

The standard formula for BAF calculation is simply put as:

Trade factor is the average fuel consumed on any given trade.

This may vary according to the following:

• The direction of the vessel
• Trade route
• The weight of the load
• The time of transit
• Distance of trade
• The container size
• The efficiency of the fuel
• How the ship is built etc.

At the moment there are no standard rates for calculation of BAF.

It appears like every ship operator has chosen to approach the new regulation their own way.

Some carriers are adding BAF on top of their ocean charges.

What is the Difference between CAF and Bunker Adjustment Factor?

Currency Adjustment Factor (CAF) is charged by carriers to enable the offset of any currency fluctuations that may affect freight rates.

This is due to fluctuations in the exchange rate that may often occur.

It serves to control or minimize gains or losses arising from exchange rate tariff fluctuation.

CAF is used to partially cover any costs incurred by a freight forwarder.

This helps the freight forwarder to be able to settle accounts with other transport entities while using different currencies.

Although each carrier independently does calculate CAF surcharges differently, the CAF amounts are usually the same.

On the contrary, BAF is meant to deal with any fluctuations in oil prices.

Both of these surcharges affect freight rates but they are not the same.

The only similarity between them is that they are meant to offer rate adjustments arising from fluctuations.

It is worth noting that the currency adjustment factor increases as a result of the United States dollar declining in value.

Can I Avoid Bunker Adjustment Factor Surcharges?

Usually avoiding BAF surcharges is not possible.

But there can be some tips on how to offset the surcharges.

If your gate in a shipment before CAF surcharges get enacted, you can be able to avoid them.

Other than this, you can only negotiate the other costs with your carrier.

This is possible because in ocean freight the room to negotiate is always there.

The power to negotiate will be heavily dependent on how much you are shipping and how big your organization is.

If your organization is small and the volume of your shipment is neither medium nor large, negotiating contracts for reduction of the total cost may not be possible.

However, it is important to note that the BAF charges cannot change.

Who Issues the Bunker Adjustment Factor?

The Bunker adjustment factor is issued and controlled by the ocean carrier.

This is because the change in oil prices directly affect them.

As a result, they issue these surcharges to control the losses and gains that may affect their expenses.

Your freight forwarder only charges you what was quoted to them by the carrier.

They are just a messenger passing on the message they received.

The operators choose to pass the variable fuel costs downwards the logistics chain.

The shippers who are the ones booking container line’s ships find themselves on the receiving end.

Normally they are not always in agreement especially when it requires them to pay more.

Are Bunker Adjustment Factor Charges negotiable?

Bunker adjustment factor surcharges are not negotiable.

They are non-negotiable pass-through surcharges.

They are near-universal since almost all ocean carriers depend on the same suppliers for their oil.

Working with one ocean carrier as compared to the other in a bid to avoid BAF cannot work.

It is something you have to plan for every time.

The dollar amount for BAF surcharges is however a typically small fraction on the total cost of the shipping dollars.

Should BAF be Included in the Freight Rate?

BAF can be charged either separately or it can also be put as inclusive in the freight charge.

This will depend on the trade route and the agreement between the shipper and the carrier.

As it is BAF depends on the behaviour of oil prices and there is no straight forward formula to its success.

Taking BAF as a concept, other than a charge, there is scope available for customers to be able to customize the concept suitable for their business.

BAF can be Fixed, Locked in or Floating.

Fixed BAF is the quantum BAF charged by carriers which are fixed and do not vary according to the market forces or even fuel price fluctuations.

This is the best option for customers who may want to know the much cost they will be charged for their shipment.

Floating BAF is the exact opposite of Fixed BAF to mean that the quantum of BAF does fluctuate based on the price of fuel.

This is an advantaged to the shipping line since they do not lose their money as the fuel price fluctuates since the surcharge is directly linked to the fuel price.

This may however be disadvantageous to customers as significant differences may mean increasing the prices of their products.

This them unfair competition in their respective market.

Shipper of large volumes of containers may prefer the Lock-In option.

With Lock In, BAF quantum is locked in with the carrier for a given period of time and this is fixed.

This happens in order to monitor the market.

They can choose to adjust their agreed terms if they prefer and agree.

This is favourable for both parties since they all stand to gain if the bunker prices rise or fall during the contract period.

What is the Rationale behind Bunker Adjustment Factor?

The Bunker Adjustment Factor (BAF) is a system that was first introduced as a result of the oil shocks that happened back in the 1970s.

The underlying reason behind this system was led by the shipping lines that were operating in freight conferences.

They could not be able to adjust their fuel prices immediately enough to make it possible to counteract the devastating impact of an increase in bunker prices.

More than forty years since it was imposed, BAF has always been a bone of contention between shippers and carriers.

The ocean carriers believe that BAF is a necessary evil that is aimed at reducing their risk to the volatility of the bunker price.

Shippers on the other side argue saying that the risk should be taken as a normal business venture.

If not so, they suggest that it be dealt with in a much better transparent manner.

In 2003 when the bunker surcharges were beginning to rise, these BAF disputes became a major obstacle to the dialogue between shippers and carriers.

The European Commission (EC) had to intervene in a bid to solve the matter.

What are the Effects of Bunker Adjustment Factor in Shipping?

Since the introduction of the new regulation in January 2020, a lot of changes have taken place.

The change was aimed at reducing air pollution coming from ships worldwide.

Earlier, ships were using use fuel containing up to3.5% sulphur content outside the Emission Control Areas.

Now, the sulphur content CAP has been placed at 0.5% by the International Maritime Organization (IMO) an agency under the United Nations.

This will see the reduction in sulphur pollution by more than 80%.

To comply with this new regulation, the carriers had to increase the shipping costs.

There are also expectations on the volatility of fuel costs for the ships to increase.

To try and harmonize all these changes, some of the leading companies like Maersk have introduced a simple and predictable BAF.

This allows the clients to predict, plan and the changes in the prices of fuel as well as how it will impact their total shipping freight rate.

This cost will be charged differently from the normal ocean freight as the fuel cost is very important and is the most volatile part of the costs of shipping.

What is the Advantage of Bunker Adjustment Factor to Shippers?

Shippers can be able to exploit the carrier variations for low-sulphur BAF mechanisms.

They can shift the booked cargo in between the different container lines in a bid to reduce the exposure to the surcharge.

To carriers, this may be a tactic they won’t appreciate.

The first priority to carriers is to recover the costs from their customers.

Analysts say that a shipper can hold a contract with two carriers.

One contract with a higher BAF and another one with a lower BAF.

They will then greatly leverage in hedging against fuel volatility.

If the prices of fuel increase, they shift a larger proportion of their volumes onto a carrier with low price variability.

Therefore, minimizing the BAF increases in price as a result of bunker fuel change.

If there is a decline in fuel price, they can move higher volumes to the carrier with higher BAF change.

This maximizes their ability to reduce prices for goods as a result of bunker fuel change.

How does Bunker Adjustment Factor Benefit Carriers?

The introduction of BAF was welcomed as a cushion that could offer a safe business environment in the Shipping Industry.

It gave them a chance to minimize the possibilities of making losses that they may not have control over.

Bunker price is very volatile.

This could mean that although at some point they could gain, the risk of losses that may come in could be extreme.

Through BAF, the formula is transparent at least for many carriers like Maersk, and the BAF surcharges are becoming predictable.

This has covered carriers by allowing them to pass over any costs associated with fuel price fluctuations down the logistics chain.

In the end, the customers who rent container space are the one who pays for the fuel price fluctuations.

What is the Effect of Bunker Adjustment Factor on Shipping Costs?

With the ongoing push for the usage of cleaner fuel, the adoption also means higher fuel prices.

The priority of BAF is to recover additional costs associated with price fluctuations on fuel.

Whatever changes are proposed, carriers will not be responsible for the price increment.

They will push them down the logistics chain and the freight forwarder will charge the customer accordingly.

These costs can be high for especially for the high-volume ships and those ships that use longer routes.

This means that more investment will be required for shipping operations.

The shipping rates are expected to rise from time to time as a result of higher bunker surcharges.

Carriers are wondering why the Bunker Adjustment Factor charges are based purely on 100% low-sulphur fuels.

This is even as more and more vessels are being equipped scrubbers.

In overall, changes in shipping costs will continue being experienced until the calculation of BAF is more transparent and easy for everyone to understand.

What is the Relationship between Bunker Adjustment Factor and Bunker Price?

There exist many fluctuations that cause serious effects on the fuel price for the shipping vessels.

The bunker is simply a type of oil. You may be tempted to think that the fluctuations in oil prices do have a direct effect on the bunker price.

However, there are no correlations between crude oil prices and bunker oil.

Although all fuel and petrol oils originate from one source, the manner in which they get priced and handled is completely different.

Many other factors may create distortions in pricing thus affecting the bunker oil prices.

These factors include:

• Speculation of prices in the crude market
• Refining priorities and the capacity constraints
• Inherent challenges for vessel operators when storing or hedging fuel

Today the common practice is that carriers will determine BAF charges and the shippers will then add the surcharge on their own base freight rates.

Is Bunker Adjustment Factor the same for Normal and Reefer Containers?

No, the BAF for reefer cargo will not be the same.

To get the BAF for reefer cargo, you will have to calculate the BAF for standard containers (dry) first.

Thereafter, you will multiply the answer with a factor of 1.5.

This is meant to take care of the electricity consumption on the reefer containers.

This is taken as an average.

As is the case, reefer containers are special containers with special customizations much of which consume electricity.

The factor of 1.5 is introduced to take care of this special nature of the reefer containers.

How much Bunker Fuel does a Ship Use?

The amount of fuel that a ship can use will be determined by two factors. They are:

• Size of the ship
• Engine capacity

The two are determined by the trading route in which the ship operates as well as the speed of the engine.

For example, the largest container ship can accommodate approximately 4.5 million gallons of fuel oil.

It is known as the CMA CGM Benjamin Franklin. This is then converted into volumes.

By our example, we have approximately 16,000 cubic metres.

The CMA CGM Benjamin Franklin can carry an equivalent of 18,000 TEUs in containers.

These kinds of ships are mainly used to move goods between Europe and Asia.

The amount of fuel used being dependent on the speed of the ship.

Majority of the ship engines are designed for highest speeds ranging from 20 knots to 25 knots per hour.

This is between 23 and 28 miles per hour. At this speed, 63,000 gallons of fuel can sustain a Panamax container ship daily.

As speed sharply drops, fuel also drops.

If a ship drops the speed by 10%, a container ship can reduce fuel usage by one-third.

Following the 208-2009 recession, the majority of the carries had to reduce their speeds up to 19mph by low steaming.

How can you Mitigate Bunker Adjustment Factor Costs?

To mitigate the BAF surcharges, you should make queries about the all-inclusive charges from port to port.

The charges are calculated as per port to port basis.

You should get all the necessary information from your forwarder.

This is in order for them to give you all-inclusive fees that can be helpful in mitigating the effects of these surcharges.

Who Regulates Bunker Adjustment Factor?

BAF is regulated by the International Maritime Organization (IMO) which is the agency under the United Nations.

 It is bestowed with the responsibility of ensuring safety and security is observed by shippers.

 It also helps in ensuring that there is no marine and atmospheric pollution by ships.

 This ensures that the UN sustainable development goals are supported.

IMO sets standards globally for security, safety, and environmental performance of international shipping.

It ensures that a fair and effective regulatory framework is universally adopted and implemented.

Simply put, the role of IMO is to create a level playing field.

This should be in a manner that shippers don’t improve their financial positions by compromising on safety, security, and environmental performance.

This also promotes innovation and efficiency.

The measures drafted by IMO cover the whole aspect of international shipping.

This includes the design of the ship, manning, equipment, operation, construction, and disposal.

Through this we are able to achieve a secure, energy sufficient, and environmentally sound shipping sector is realized.

What is locked-in Bunker Adjustment Factor?

Locked-in Bunker Adjustment Factor is one of the three types of BAF.

This is where both parties decide to agree on a locked-in bunker price up to a given period of time.

It is a compromise between floating BAF and fixed BAF models.

It makes the locked-in option get the characteristics of a forward deal.

Any of the parties can either be advantaged or disadvantaged depending on which direction the price development may take.

The shippers can gain a surplus if the price of fuel reduces at the period of the then locked-in BAF contract.

The buyers will get a surplus for themselves in case the prices of the fuel go up.

How Often does the Bunker Adjustment Factor Price Change?

Usually, the BAF changes on a monthly or quarterly basis.

The changes are determined by the changes in fuel prices amongst other factors highlighted here.

The BAF was previously revised every quarter by the Transpacific Stabilization Agreement (TSA).

But since TSA was closed, the determination of BAF was left in the hands of the carriers

According to Maersk, their BAF tariffs change monthly if the change in fuel price is more than $50 per ton compared against the latest adjustment.

Once the carriers find it necessary to change the BAF whether monthly or quarterly, it trickles down the chain of logistics.

The carriers’ decision on when to review their BAF is dependent on the factors below:

• Fluctuations in the prices of oil
• Vessels at the various bunkering ports
• Whether their clients are looking for long or short–term rates

Based on these, the carriers can choose whether they need to review the BAF prices on a daily, weekly, monthly, quarterly, or annual basis.

Whether the liner updates their BAF fee on a basis will depend on the fluctuations of oil prices.

The vessels deployed on the various corridors and whether their customers are looking to secure short or long-term rates.

Who Charges the Bunker Adjustment Factor Fees?

The bunker adjustment factor surcharges are determined by shipowners under strict guide and monitoring of the European Union.

This is because they are the ones who are directly affected by the volatility of the prices of fuel oil.

The charges are set based on the losses and gains arising from the fuel price fluctuations.

It ensures that all standards are met as well as preventing collusion.

Once the BAF is set, the fees are charged based on TEU on the freight forwarders who then charge their individual customers.

The fees trickle down as originally set and are universal across all carriers and cannot be negotiated.

Is Bunker Adjustment Factor Surcharge the Same for all Carriers?

This is very true.

Bunker adjustment factor remains the same across all carriers.

This is because the formula for calculation of BAF is the same.

With reference to the formula, Fuel price is taken as the average price of fuel in major bunkering ports across the world.

That is to mean, all carriers are considered and the average price they paid for fuel is taken.

When the BAF is calculated, it will be the same for all calculations done under the same trade factor.

Let us take distance for example as a trade factor.

All carriers covering that distance will arrive at the same BAF.

What is the Benefit of Understanding BAF and its Functionality?

Understanding BAF and its functionality can help importers and exporters be in a better position to get better future analysis of what is related to their freight.

In doing so, they will arrive at the cost of their supply chain better and even more accurately.

What is EBS (Emergency Bunker Surcharge)?

Emergency bunker surcharges represent the extra measures taken by carriers.

They are implemented in a bid to cover themselves from the costs associated with the rise in prices of fuel.

Like already mentioned before, fuel is consumed is determined by the speed of the ship.

Therefore, the logistics industry is dependent on people and fuel as the forces behind its operation.

Sadly, though, the volatility of fuel is a major thing in the shipping industry.

The prices of oil change overnight and sometimes so drastically.

This is a game-changer and it affects everybody involved.

For carriers to protect themselves from any such unexpected increases in the cost of fuel, they charge the EBS.

Without this most carriers can make huge losses as the cost will directly affect their cost calculations, the margins and even increase the losses.

Many carriers have followed this path of introducing the emergency bunker surcharge.

As it is in the shipping industry, such costs trickle down to the shipper and this can be frustrating.

There is always a backlash from some shippers, wondering why liners cannot accept the cost as a normal cost of running their business.

They expect them to take responsibility for the changes in costs.

The emergency surcharge has now become an independent charge as a result more and more carriers improving their rates of transparency.

What is the Difference Between BAF and EBS?

TheEmergency Bunker Surcharge (EBS) differs from the Bunker Adjustment Factor in two elements.

The Bunker Adjustment Factor will cover a freight shipment from the fluctuating costs of fuel. This is mostly made in advance.

On the other hand, the Emergency Bunker Fee is an emergency fee charged to cover for any unanticipated upward change in bunker prices.

This is normally introduced at the last minute.

EBS prices may vary according to an increment in fuel rates.

Also to consider in EBS is the type of container and the trade lanes through which the freight will be moving in.

The EBS may be different since the carriers can decide to have it implemented only on specific routes or on certain types of containers.

The EBS is based on a last minute decision when the earlier predicted change in fuel prices become lower than the actual.

As a matter of urgency, the shippers then introduce the Emergency Bunker Surcharge to cover those differences in operation costs.

Who Should pay Emergency Bunker Surcharge (EBS)?

There has been an ongoing debate over who should bear financial obligations on the linear costs of operation, like the bunker fuel prices.

Should it be the carriers or the shippers?

This has led to the need for a more transparent and a long-term solution on the Emergency Bunker Surcharge.

Shippers are suggesting that liners take much of the responsibility for the cost increases.

They have gone ahead and criticized the information, suggesting that they exist to cover carrier losses other than fuel.

Even with the frustrating unexpected Emergency Bunker Surcharge, ocean carriers lack any influence or control on the cost of fuel.

It is only fair for ocean carriers to pass part of the burdening operational cost to their clients.

This means that with all the occurring changes, the customers bear the cost.

Why do Carriers Announce EBS?

There are several reasons why carriers are announcing EBS. They include:

• High prices of fuel
• New emissions standards
• Reduced spot rates

i. High Prices of Fuel

The fuel prices are rising all across the world supply chain.

This has even led to demonstrations and even strikes in some of the sectors.

ii. Newly introduced Low Sulphur Emissions Standards

According to IMO, the main goal for this regulation is to significantly bring down the amount of sulphur oxide produced by ships.

This should have major environmental and health benefits globally.

Especially to those who reside in the coastal areas and the ports.

iii. The Decline in Spot Rates and Financial Losses

There is a rise in the bunker and the vessel charter costs together with weaker freight rates.

There is also a continuous side pressure coming from the shipment of new containerships and all these on the margins of the carrier.

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In this you will learn everything about custom shipping container.

Keep reading to learn more.

Types of Shipping Container

A shipping container is a metal container made of industrial-grade steel and originally manufactured to import and export goods.

The types of shipping containers vary to the intended purpose of use.

The following are some of the most widely used types of shipping containers.

General Purpose Container

It is also known as a dry container and is the most widely used type of shipping container.

Dry container is available in ISO standardized sizes and is ideal for transporting dry goods.

Flat Rack Containers

This type of container possesses collapsible sides that can fold to make a flat rack.

They are ideal for transporting oversized and bulky goods since they also have very stable end walls that will safely secure your goods.

Open Top Containers

The containers have a removable or convertible top that you can completely remove to ship over-height cargo that won’t load through the container’s door.

Double Door Containers

It is also known as tunnel containers and ideal for faster loading and offloading of goods in the container.

High-cube Containers

These containers resemble general purpose containers though taller by at least one foot.

It is ideal for use when you want to transport a slightly higher volume of cargo.

Open Side Container

This kind of container also resembles a general-purpose container, but the doors can be completely open on their sides.

It offers more room to access the container for speedy loading and offloading of goods.

You can also easily fit goods that are too big to get in through the regular door.

ISO Reefer Containers

You can use an ISO container to ship goods that require controlled temperature, such as perishable agricultural produce, meat, etc.

Insulated Containers

Similarly, this type of container also has a temperature control setup that can withstand higher temperatures.

It uses the ‘thermos’ technology and has a mechanical compressor to heat or cool the air inside to achieve the desired effect.

Half-height Containers

As the name suggests, the container’s height is half that of a regular container.

It is ideal for bulky, heavy, and dense cargo transportation because it has a lower center of gravity.

Tank Containers

This container type is ideal for shipping liquid products.

The tank comprises anti-corrosive steel in addition to other anti-corrosive material.

Swap-Body Container

This type of container is ideal for rail and road transportation because they are exchangeable.

You can only use swap-body containers for land-based transportation because they lack the upper corner fittings and are not stackable.

Other types of shipping containers include:

• Drum containers
• Car carrier containers
• Special purpose containers

Grades and Condition of Shipping Container

A container’s grades reflect its current condition and thus its suitability for use.

There is no universally standardized container grading system.

Currently, the grading systems in use depend on the structural and aesthetic value of the shipping container.

These two grading systems are independent of each other, and you have to consider them so.

The following are the available grades of containers:

One-trip

It is a near new container sold to the buyer as soon as it arrives at the destination point.

A one-trip container has been used only once to avoid empty shipping containers at higher transport costs.

One trip containers have minor flaws that arise from a single time use.

F-Food Grade Containers

The container is of high standards and used in the shipment of food products.

It must meet the following conditions.

• Structural conditions must meet IICL 5 requirements.
• Must have a valid CSC plate
• Has never transported or come into contact with any hazardous or toxic chemical
• Waterproof
• No visible daylight from the inside when the doors are closed
• High hygienic and cleanliness standards
• The depth of scratches must be less than 2 mm.

Grade A

Grade A containers must meet the following conditions:

• The container can be new, used, or refurbished.
• Must meet the requirements of wind and watertight (WWT)
• Must have a valid CSC plate, and the structural condition is IICL 5 compliant.
• Rusts and dents are very few.
• The interiors should be at least 80% mark free.
• It also has minimal surface rust.

Grade B

The grade classifies containers with the following qualities.

• Must be cargo worthy, that is, ideal for cargo transportation as per the guidelines of CSC.
• Possess valid CSC plate
• Should either be IICL 5 or WWT compliant
• The scratches and marks on the interior surface must be less than 50%.
• The floor usually has minor delamination and will be stained or marked.
• The outer surface usually has extensive dents and corrosion.
• It may have undergone some minimal repairs.

Grade C

• Grade C containers are cargo worthy 2, WWT, and must meet all the set initial specifications.
• Has more extended scratches, markings, and corrosion
• Has undergone extensive repairs
• The floor has moderate delamination and markings.
• Cheaper and also widely available
• Has extensive wear and tear on the outer surface with numerous, visible dents and corrosion.
• You can use it to ship goods provided it has a valid CSC plate.

Grade D

These containers are too damaged to be used in the shipping industry and may also be unworthy to store goods.

• D grade container s also referred to as “As Is Standard.”
• It has no valid CSC plate.
• The container’s floor is extensively delaminated and stained.
• Both the exterior and interior are extensively corroded and may also have holes.
• Walls and roofs may be leaking, difficult to open doors, and worn out seals.

Feature You Can Modify in a Shipping Container

You can modify almost every aspect of your shipping container to meet your particular needs.

When it comes to modification, you can either purchase already modified containers from specialist suppliers, or contract a specialist to modify them for you on-site.

You can also custom it yourself if you have the relevant skills and experience.

Some of the features you can custom to your liking include:

• Height, Width, and Length (Size).
• Shelving
• Paint color
• Locking technique
• Doors and Windows
• Flooring and Roofing
• Interior and exterior finishing-out
• Insulations
• Partitions
• AC/Heating and Turbine vents
• Ramps
• Plumbing and Claddings,
• electricity connections
• Water connections, etc.

Factors to Consider When Selecting a Shipping Container to customize

You should consider the following factors when selecting a shipping container to modify for a specific application.

Size and Type of Shipping Container

You should select a container that is large enough to provide the desired space requirement for your application.

If you want more spacious containers, you can consider high-cube containers.

Similarly, you can select a general-purpose container, tunnel containers, or any other type of container that will suit your application as desired.

Container Condition

Select a high-grade container that is still in good condition.

Lower grades containers may be cheaper but can limit your modification needs and will also be less efficient.

You should personally inspect the container to ensure that it is in good shape and meets your structural and aesthetic requirements.

Supplier Reputation

It is wise to consider buying your containers from suppliers who have a positive reputation and have been in the business for some time.

Though they might charge a little higher prices, they are highly likely to deliver the best quality containers.

Repainting

You should cautiously select a freshly repainted container.

In most cases, repainting might hide rust spots that might not have been treated with a rust converter.

Rust itself is not a problem, but it will bleed through the paint sooner and demand additional treatment and repaint cost if not properly managed.

Purpose for Purchase

The application you want to use your modified container for will determine the grade of the container you select.

For instance, if you’re going to start a catering service, you must choose a nearly new or food-grade container still in great shape.

Other applications may not require stringent conditions and can be okay with grades C or D.

Installation Space

You have to select a container that suitably fits in your installation space without strain.

Ensure that you won’t be obstructed by the available ground space or obstacle heights.

Delivery Cost

Inquire who will incur the delivery cost and how much it will cost if you have to pay for it.

Select a supplier who has branches near your location to minimize the cost of delivery.

Design Limitation

Ensure that the container you select will be capable of accommodating your design requirements.

Anything short will inconvenience you and the efficiency of your application.

Determining the Condition of a Used Shipping Container

You can determine the condition of a used container by considering the following factors.

• The age of the container
• The grade of the used container
• Mileage traveled by the shipping container.
• Handling and maintenance history of the shipping container
• The operational conditions the shipping container has experienced.
• Shipped containers door quality
• History of cargo spills on the used container.

The Difference Between New and Used Shipping Container

New Containers

A new container in most parts of the world is known as single-trip containers.

Single-trip containers move from the point of manufacture to the destinations where they are sold off while loaded with cargo.

The cargo is offloaded, and the containers are sold off as new containers.

Usually, a new container has less than 5% markings and very little use evidence.

New containers also have the best aesthetic appearance and usually come in a single solid color.

They are free of shipping logos and can serve you sufficiently for up to 30 years with good maintenance.

Used Containers

A used shipping container is one that has been used for multiple cargo shipments over the years.

They are usually wind and watertight and ideal for specific purposes.

Unlike new containers, used shipping containers have rusts and dents and carry logos of various shipping companies or other brandings.

A used container can serve you for up to 20 years when you handle them carefully with sufficient maintenance.

You can always refurbish used containers through repairs and paintings.

Available Sizes of Shipping Container to Select From

Shipping containers come in a wide range of sizes.

However, a standard ISO container is either 8.5 feet high by 8 feet wide by 20 feet or 40 feet long.

High-cube containers are bigger and measure 9.5 feet high by 8 feet wide and either 20 feet or 40 feet long.

There are other diverse sizes of shipping containers that may vary between manufacturers and industry of use.

Ensure to consult your supplier if you need any custom sized container.

Applications Suitable for Custom Made Shipping Containers

You can use modified containers for almost any application that requires temporary storage or shelter.

Different applications require different types of container modification.

Below are some of the common areas and the corresponding applications that suit the use of modified containers.

Conversion for Catering Needs

You can use modified ISO containers to build restaurants, coffee outlets, pop-ups, mobile catering units, mobile event bars, etc.

Modified containers suit the needs of erecting mobile or semi-mobile catering units to serve in different occasional events.

Conversion for Retail Business

Modification for retail conversion depends on a range of factors.

Key among the elements is the size of your business, required internal space, and size desired.

You will pay cheaper rent and taxes for modified retail outlets compared to concrete houses.

Some of the most retail applications include:

• Barbershops
• Event merchandise stalls
• Household goods stores
• Motor vehicles spare part retail shops.
• Mobile and pop-up retail shops

Conversion for Office Use

You can use modified office containers in almost any industry.

Consequently, you can use office containers in the following fields.

• Trade show and exhibition offices
• Construction site offices
• Sales offices

Conversion for Industrial Use

Modifying shipping containers for industrial use is ideal in the manufacturing, engineering, and construction environments.

You can easily convert these containers and use them in a diverse range of applications listed below.

• Generator store
• Workshop containers
• Biomass containers
• Control rooms
• Chemical store

Conversions for Self-storage

You can custom make the standard shipping container and transform it into a dynamic self-storage facility.

The following applications will come in handy:

• Chemical store
• Self-storage office
• Pharmaceutical stores
• Container multistore
• Mains electrical storage units
• Dual function storage/office
• Other uses of modified shipping containers can also include:
  • Educational purposes: Storing books, records, documents, and athletic equipment
  • Agricultural purposes: Storage for farm equipment, supplies, products, and machinery.
  • Government services: Temporary shelters, military supplies, security and custom offices
  • Residential use.
  • Medical: Mobile clinics and laboratories.

Advantages of a Customized Shipping Container

Conversion of shipping containers into diverse structures with multiple uses harbor with it numerous benefits.

The following are but the selected few in the list.

Very Spacious

There are different sizes of shipping containers to select from.

Usually, these containers are always too spacious and have plenty of room to store as many goods as you can.

Maximum Security

Modified shipping containers are manufactured using steel, which is very secure and difficult to break into.

In addition to the standard locking mechanism, you can customize the locking systems to give you the peace of mind of safe goods.

Highly Durable

Steel is known to highly durable metal that can withstand the harshest of environmental conditions.

You can use your modified shipping containers for up to 20 or 30 years, provided you take great care of them through regular maintenance schedules.

Easy to Transport

When your business or work is mobile, then using a custom made container is the best way to go.

You can either put your products in a shipping container, load them up in a truck for transporting them to another point or use a container with fixed wheels.

Faster Construction

You will construct your desired infrastructure faster in comparison to the conventional brick construction methods.

You can perform some of the less crucial modification in your production site before transporting it to the final destination.

Cost-effective

Modifying shipping containers are also cheaper compared to traditional brick construction methods.

Though an empty container may be cheap, complex modifications may skyrocket the costs significantly.

Siting Your Custom Shipping Container

Siting your custom shipping container properly goes a long way to ensure its longevity, safety, and efficiency.

Place the container on a dry, flat and level surface, either tarmac, concrete, or paving, to enable the doors to open correctly.

Avoid placing containers on soft, uneven, and dump surfaces.

Though it will survive under such conditions for several years before wearing off, wear and tear will significantly reduce its life cycle.

Place timber and paving under the corners of shipping containers to act as spacers and balance them even under extremely uneven surfaces.

Designing the Plan for Customized Shipping Container

You can manually design your container by brainstorming for ideas, presenting them as sketches, and then combining them as a design drawing into a final product.

You can also use a variety of container design software to design your modified container as desired.

Basic Materials for Customizing Shipping Containers

Shipping containers are versatile, strong, and heavy structures that require some specialized and ordinary equipment and machinery to modify.

Some of the basic machinery and equipment that you must have include:

• Forklifts and Hysters
• Welding Machine
• Propane heaters
• Spray foam insulation kits
• Cutting discs and Grinders
• Assembly materials
• Safety equipment

Step by Step Customization of a Shipping Container

The following are necessary steps that you can consider for customizing a shipping container for any application.

You can seek professional help from a specialist for more complex modifications or carry on yourself if you have some artisan skills.

• Design and sketch your desired structure.
• Workout all the arithmetic and architectural competence of your project to see if it fits well with available shipping containers.
• Consult an engineer for the structural safety of the structure you intend to construct, especially if it involves removing any parts.
• Incorporate the expert’s opinion in your design and finalize it.
• Prepare the site where you will lay your modified container. Involve an expert when making the concrete stands, slabs, leveling, etc.
• Select and purchase a shipping container of a higher grade. Ensure you factor in the delivery time to avoid unnecessary inconveniences.
• Receive and connect your containers appropriately if you are using more than one container. Add all other structural inclusions correctly.
• Cut the openings and install the add-ons as desired. Seal the gaps created during cuttings.
• Remove the floor or add a subfloor as appropriate, given that the original floor might have chemical residues.
• Add frames, sheath, insulation, and floor as desired.
• Install electricity and water system as appropriate.
• Conduct final plumbing and furnishing to complete your structure.

Insulating a customized Shipping Container

You have to insulate your modified shipping container to protect you from the surrounding outdoor environment’s temperature extremities.

There are diverse options that you can choose from when insulating your modified shipping container.

The choice of a particular method will depend on your application and the desired structural properties.

You can use either of the following types of insulation t broadly classified into five major groups:

Blanket Insulation

These are open-celled, fluffy, blanket-like materials fabricated by fitting long fiber meshes in smaller spaces.

Blanket insulation is commercially available as insulation batts and rolls.

They include fiberglass, Rockwool, mineral wool, slag wool, sheep wool, denim, and cotton.

Blanket insulator offers cheaper insulation options.

Unconventional Insulation

The materials used are cheap and unconventional though more environmentally friendly.

They have a low R-value, thus also lower insulation properties.

You can use them in environments without extreme temperature fluctuations.

They include materials such as straw bales and hempcrete.

Loose-fill Insulation

You can also construct wall cavity containment chambers then apply pieces of macroscopic insulating materials.

However, loose fills are highly permeable to vapor and may cause problems with moisture retention.

Some of the materials you can use are loose-fills of cellulose, fiberglass, perlite, vermiculite, etc.

Spray Insulation

You can use spray insulation, a mixture of several liquefied materials that harden when sprayed.

Spray insulation expands to seal the cracks, nooks, and crannies and ideal for conserving heat in the shipping container.

Types of spray insulations that you can use include:

• Open- and Closed Spray Polyurethane Foam
• Cementitious Foam
• Damp-Spray Cellulose

Expanded Foam Insulation

These are self-supporting insulation panels, and boards fabricated off-site and pre-sized to tailor fit a standard wall height.

These forms have a higher R-value and can offer sufficient insulation in extremely demanding climatic conditions.

They include material such as:

• Open and Closed Cell Polyurethane Foam
• Polyisocyanurate
• Expanded Polystyrene Foam
• Extruded Polystyrene Foam

Preventing Condensation in Your Shipping Container

Condensation is typical of any metal surface.

Container condensation occurs when the container wall’s temperature drops below the dew point temperature of air occupying the container.

Changes in the internal container temperature can re changes in external weather and other external factors.

When the internal temperature falls below the dew point of content moisture, the air inside the container will no longer be capable of holding moisture.

This leads to condensation.

Condensate can collect into large drops of water and drip down, causing damage to your goods and corrosion on the shipping container’s interior.

You can manage condensation in a modified shipping container using different methods as dictated by your application.

These methods include:

The use of Desiccants

These are vitals when using your modified shipping containers for product storage.

They absorb excess water from the air and reduce the dew point.

Install Ventilators

A sound ventilation system eliminates the air temperature differences between the outside and inside of the container by sucking in cold air and expelling warm, moist air.

However, ventilation may fall short of meeting your needs in humid and wet conditions because it will suck in cold air.

Improve Insulation

Installing insulators in your container walls will significantly lower condensation by maintaining higher internal temperatures above the dew point.

Use Dehumidifiers

Dehumidifiers are fundamental in applications that use a modified container for the storage of moisture-sensitive goods.

They suck off excess moisture from the air as the dew point falls.

Other useful practices that will also minimize condensation in modified shipping containers include:

• Avoid placing your containers on cold and dumpy surfaces like exposed soil.
• Use containers with corrugated roofs.
• The roof can be slightly bowed in an arc form to prevent the collection of external water.
• Store your products in the container using pallets

Installing Doors and Windows in Your Custom Shipping Containers

You can install doors and windows anywhere on the container for your convenience and ease of access.

Follow the steps below when installing doors and windows.

• Measure and mark the location where you want to install the door or window.
• It should be inclusive of space for steel tubing.
• Use an angle grinder to cut the opening, then let it settle and cool.
• Grind the sharp edges using angle grinders.
• Construct the door frame using three tubing pieces, that is, for the top and both sides. In the case of a window, you will use four tunings.
• Square the frame, then clamp it into position. Weld the corners
• Fix your frame into the opening created earlier and level the header to square it. Secure the frame into position by tack welding its top and sides.
• Remove any sharp corners using an angle grinder.
• Seal all openings between the door frame and container shell by applying silicon. Remove the excess silicon and prepare a smooth finish.
• Install your window and door as per the instructions provided by the manufacturer.
• You can tack weld a rebar piece across the open or bottom end of your frame to ensure that your frame remains square.

Adding Wheels to Your Shipping Container

You can use either removable or permanently fixed container wheels to move it around.

The choice of container wheels to use depends on how often you move it around.

Your wheels should be strong enough to handle the weight of a modified shipping container and big enough to roll over uneven surfaces.

Use adjustable wheels that you can winch to square them up with the truck or trailer you use to pull them.

You can also use a permanent container caster to move your modified container around.

Each of these container movement methods has its benefits and drawbacks, which you must consider thoroughly before settling for a given option.

Safety Concerns of Customized Shipping Containers

Security Concerns

The original shipping container is usually airtight and impenetrable, making them some of the most secure storage facilities available.

However, modification and add-ons such as windows may lessen the security levels, and therefore you should install more security enhancers.

Health Safety Concerns

The primary health safety concern is floor contamination with potentially harmful chemicals and hazardous materials in the coated paint.

If you have ordered brand new shipping containers from the original manufacturer, you can instruct them not to treat the floor with hazardous chemicals.

However, if you are using an already used container, there are high chances that the wooden floor was treated with chemicals to protect it against pests and mold.

If you are not sure of the chemical content, it will be wise to either completely remove the wooden floor or place a carpeted floor above it.

You can insert a non-breathable polythene bag before carpeting with a new floor system.

Similarly, some cargo transporters paint their containers with potentially harmful paint coating for protection against saltwater.

Such paints can be dangerous when they come into contact with human skin.

You can mitigate the risks of toxic chemicals by either encapsulating the harmful coat with non-toxic paint or insulating with spray forming insulator.

Alternatively, you can eradicate the coating.

Enhancing The Security of Your Custom Shipping Container

You can consider either of the following measures to enhance the security of your modified shipping container.

• Installing a perimeter wall
• You can install an alarm system.
• Using crossbar locks
• Installing inner bolts
• Welding or bolting container lockboxes
• Using heavy-duty padlocks
• Installing keypad entries
• Using latch guards
• Using burglar bar windows
• Install security lights

Inspecting a Shipping Container

Shipping container inspection starts at the design stages and continues through the entire service life of the container.

The International Convention of Safe Container (CSC) has outlined specifications on the requirements for safe and secure containers.

If you can physically visit your suppliers’ yard, you should conduct a pre-purchase inspection and a post-purchase inspection at the delivery time.

Inspecting a container intended for modification or on-site storage is usually not as stringent as inspection for sea, rail, or truck transit.

The process is entirely visual and does not require any special equipment.

You should inspect the following areas.

• Underside
• Structural frame
• Walls
• Roof
• End doors
• Interior
• Floor
• CSC plate
• Database

Cost of a Shipping Container

The cost of a shipping container significantly varies to the container’s grade and condition at the purchase time.

Other factors that also influence a container’s cost include; location, supplier, age, availability, delivery fee, size, and features.

Among all these factors, the container’s condition is the most important when bargaining for prices.

Second-hand containers can

Before you import food from China, read this guide.

It has all information that will help you choose the best food products from China.

Whether you want to learn about safety, FDA approval, quality standards, or shipping container – you will find all information right here.

Keep reading to learn to learn more.

Why should you Import Food from China?

Chinese cuisine is a popular meal all over the world.

Each year, millions of customers stream into restaurants offering this option to have an experience.

If you’re opening a Chinese restaurant or food store, you could opt to buy food from China directly and get culinary variety, low price points, and unique flavors.

Chinese food is the oldest cuisine in the world and thus very complex.

Majority of the existing Chinese restaurants serve the same dishes since non-Chinese patrons are likely to have heard or tasted them before.

Importing food products from China allows you to preserve this authenticity as not many people can hack it.

What are some Food Products you can Import from China?

It isyour responsibility to ensure whether imported food from China is subject to any regulations, restrictions or permit by your country.

Some of the foods you can import from China are:

Meat and Dairy Products

Rabbit, frog legs

Fish

Crab, shrimp, cod, prawns, tilapia, shellfish, and other types of fish

Food Preparations and Ingredients

Cocoa butter, vegetable saps and extracts, soy sauce, malt extracts, starch and wheat gluten and other food preparations

Nut Products, Vegetable, Fruits, Vegetable, and Juice

Canned mandarins and dried mushrooms, canned beans, frozen vegetables, garlic, pear, and apple juice

Spices and Tea

Chili paste/powder, ginger, tea Leaves

Animal Feed and Pet Food

Pet food and snacks

Beverages

Vinegar, beer, ethyl alcohol, sweetened water

Oilseeds and Grains

Soybeans, rice

Others include honey, candy, and other confectionery amongst other food products/

What do you need in Order to Start Importing Food from China?

Before import food from China, you’ll need to identify if you have importation rights especially if you’re purchasing for commercial purposes.

If you are importing into United States, for example, your company’s Internal Revenue Service Number (IRS EIN) or Social Security Number (SSN) can be used.

Check with your government for specific requirements.

What is the Basic Importing Process for Food from China?

1. Confirm your import rights.
2. Identify the food you want to import. This will be your main consideration.

You should conduct a market search prior and identify if there is a niche for the specific food you intend to import.

3. Ensure that your exports comply with your government’s specific rules and regulations.
4. Make an estimate of your landed costs. Get the food price from your supplier; add shipping charges and charges from custom clearance to get the landed costs.
5. Find your supplier in China and make an order.
6. Arrange your cargo transport. Your options vary between sea freight, air freight, and courier service
7. Track your cargo and prepare for arrival
8. Receive your shipment.

What are the Safety and Quality Standards for Food you Import from China?

Most safety risks related to imported food from China come up in the handling and manufacturing of the food.

Poor storage and handling introduce viruses, fungi, bacteria, pests, parasites, and other toxins.

Before purchasing, conduct a background check of your supplier to ensure they comply with international Food Safety Laws that make them liable for food safety violations.

Not that some food products are imported fresh and may require refrigeration or during transport.

Do you need FDA Approval to Import Food from China?

Yes. All facilities that handle food to be consumed in the United States; including food imported from China must register with FDA.

Importers are responsible for compliance with labeling, sanitary, and safety regulations

What are the FDA Requirements for Food you Import from China?

Other than meeting the set requirements in food regulation including registration of your food facility, you must adhere to import procedure and stipulation of Prior Notice.

Different food products have varied requirements when imported from China.

Take note of the specific requirements of your food items and check for compliance.

The following are available on the FDA’s website for specific requirements:

• ATPCP (Accredited Third Party Certification Program)
• ISSP (Imported Seafood Safety Program)
• VQIP (Voluntary Qualified Importer Program)
• FSVP (Foreign Supplier Verification Programs) for importation of human and animal feed
• MCP (Manual of Compliance Policy )
• HACCP (Hazard Analysis Critical Control Point)
• Prior Notice of imported food

Any foods processed through the food additives regulations should be marked “Approved by FDA.”

What Food Products don’t need FDA Approval to Import from China?

As long as Prior Notice of food shipment is given and your facility is FDA registered, you can import food from China without prior sanction.

Can you Import Food from China that is not FDA Approved?

No. all imported food commodities should meet the FDA regulations.

What are the Categories of Food Hazards from China?

Imported food from China may be contaminated during shipping or handling and be deemed unsuitable for consumption.

These are the food hazards you should look out for

Biological Hazards

These are viruses, bacteria or parasites in food.

Chemical Hazards

These are things that introduce unwanted chemicals into the food for example cleaning chemicals, improper use of food additives and unintentional contact with food allergens.

Physical Hazards

Sometimes unintentional objects like jewelry, bone chips, shells or other dangerous material end up in food and contaminate it.

How do you Identify Food Hazards when Importing from China?

Here are some of the ways to identify food hazards:

Biological Hazards

Watch out for staff with poor hygiene, bacteria commonly found in food, spoilt ingredients and Preparation and storage of food at temperatures that allow bacteria to grow.

Chemical Hazards

Watch out for unintentional contact with common food allergens, cleaning chemicals, and improper use of food additives.

Physical Hazards

Watch out for personal objects and other material that do not belong in food.

How do you Prevent Food Safety Hazards when Importing from China?

Here are some of the key aspects you need to consider:

Biological Hazards

• Storage and preparation of food at appropriate temperatures
• Rotating stock
• Practicing good hygiene in all facilities

Chemical Hazards

• Use correct cleaning and preparation procedures
• Label and store chemicals separately from food

Physical Hazards

• Follow appropriate procedures in your facilities
• Conduct regular visual inspection

What are the Main Documents Required to Import Food from China?

Prior notice

An electronic submission that allows FDA and CBP officials to prioritize inspection for upcoming food imports.

FDA Facility Registration

All foreign manufacturers, suppliers and distributers of food intended for the U.S market must register their facility with FDA.

Bill of lading

This document acts as receipt, title and contract and gives tracking information of the goods.

Commercial invoice

It contains all the details of goods such as country of origin, dates, prices, and HTC Code.

Packing list

Also contains the details of the shipment including description, size, weight, dimensions, and invoice numbers.

Customs bond

This acts as a financial guarantee that all import duties and fees will be paid to CBP.

Entry summary

Officially recognized as CBP Form 7501 and is a combination of all information found in the other documents.

Is Food from China Safe?

Concerns have been raised over the safety of food from China after several ingredients were found to be tainted with the chemical melamine.

They included products from brands like Cadbury, Heinz, and Mars and sickened thousands of infants in China.

Conduct a proper market research before purchasing from your supplier.

What are Some Foods you can’t Import from China?

While all permitted foods can be imported from China, there are restrictions put in place to control the importation of certain food items.

Products from animals must consent with specific health conditions such as pre-shipment checks for unlawful veterinary drugs nitro furans and chloramphenicol and related metabolites.

Fishery products with traces of crystal violet, malachite green, and related metabolites also cannot be imported.

What are High Risk Foods?

High risk foods are foods containing contaminants like salmonella or pesticides, aflatoxins, and mycotoxins.

What are the China Food Export Regulations?

As an importer, ensure all food products meet all required China export regulations.

These include rules set in place by the FDA, USDA, CBP and FWS.

For food products such as honey, milk, honey and meat there are additional regulations that govern their exportation.

How do you Ensure the Quality of Food you Import from China?

All imported food products should comply with FDA regulations.

The agency is incharge of overseeing importing of regulated products like food and animal feed, vaccines, vet and human medicine, and other biologic goods, medical devices, and cosmetics.

What are the Labeling Requirements when Importing Food from China?

FDA is very strict when it comes to product labeling of imported food commodity.

At minimum, the following information should be included

• Product name and address of the company distributing the food product
• Net quantity
• Nutrition
• Ingredients list
• Name and place of manufacturer/ importer
• Country and origin
• Brand logo or names of companies must be used with permission in terms of copyright laws

You must verify the label template created by the supplier is fully compliant with the requirements.

Any information in foreign language should be translated to English.

What are the Packaging Regulations for Food you Import from China?

The packaging you choose for your food products should include proper information for handling of goods hygienically and safely.

The packaging of food has three layers:

Export or TransportPackaging – This is the outermost layer that protecting the goods in shipping.

Outer Packaging – This is an intermediate layer such as a wrap with several pouches of the food product.

Sales Packaging – This is the inner most layer of packaging of the food product.

Food contact material regulations apply to all materials in contact with human food products.

A packaging sample(E.g. plastic bag) should be sent to the lab to ascertain compliance.

Aluminum is safe material in contact with food though not appropriate for very acidic foodstuffs like tomatoes.

Materials like plastics are limited to a packaging of 10mg per kilogram of imported food.

The ultimate rule is that all materials of packaging should not let their constituents to contaminate food.

That is in amounts that will affect quality of the food or harm human health.

How can you Ship Food Products from China?

Food products should be properly packaged during shipping to preserve freshness.

Some of these packaging include: shipping containers with foam insulating like Styrofoam, card boxes with insulating box liners and dry ice boxes to maintain low temperatures.

You can ship with:

• Sea Freight
• Air Freight
• Express shipping

Do you need a Customs Broker when Importing Foods from China?

The process of importing food products from China is highly involving and prone to mistakes that lead to major issues.

Many importers, especially first time importers, opt to work with a Licensed Customs Broker.

Dealing with strict custom regulations and requirements is part of their daily responsibilities.

They take the worry and hustle out of importing to let you focus on other aspects of the business.

What are the Incoterms for Importing Food from China?

When importing food from China, various incoterms state the obligations of the exporter and importer at various points in the food shipping process.

Incoterms for all modes of transportation are:

• Ex Works (EXW)

The seller avails goods to be picked up at its premises with no obligation to load.

• Free Carrier (FCA)

Seller makes goods available and is responsible for loading to buyers transport.

• Carriage Paid To (CPT)

Seller delivers products to the carrier or a specified shipment point.

• Carriage and Insurance Paid To (CIP)

Exporter is responsible for transportation costs.

• Delivery At Place (DAP)

Exporter makes delivery to destination without unloading.

• Delivered At Place Unloaded (DPU)

Exporter makes delivery and unloads at terminal.

• Delivered Duty Paid (DDP)

Exporter makes delivery to an agreed destination ready to be unloaded and for clearing for importation.

Incoterms for sea transport include:

• Free Alongside Ship (FAS)

Exporter clears shipment and makes delivery after they are placed next to the ship at the port.

• Free On Board (FOB)

Exporter makes delivery as they are on board the vessel at a specified port.

• Cost and Freight (CFR)

Exporter makes delivery as they are on board foots the costs related in shipping to destination port.

• Cost, Insurance, and Freight (CIF)

Exporter bears the cost of freight and insurance all the way to destination port.

What is the Importance of Incoterms when Importing Food from China?

Incoterms provide importers and exporters clear and succinct rules to help each of them understand their obligations and fills in any cracks in the contract.

When an exporter and importer settle on a certain incoterm, they both accept the related responsibilities and obligations defined under that particular incoterm.

Are there Special Requirements for Importing Seafood from China?

FDA ensures all seafood imports are safe for American consumers. Imported China seafood safety requirements include:

• Sampling of imported food products
• Inspection of sea food importers
• Reviewing information from all foreign food import partners
• Inspecting fillers of sea food imports
• Assessing country program assessments
• Inspection of foreign food processing facilities

What are the Factors to Consider when Choosing a Chinese Food Supplier?

You should note hat there are many scammers and fake Chinese food suppliers online.

To avoid getting conned, find a trustworthy supplier by looking at these two aspects:

i. Is the company a legitimate business with a good reputation and does the supplier have the ability to produce the goods?

ii. Here are some effective strategies to answer these questions:

• As you check Chinese wholesale websites online, ensure you go through all their policies, terms and conditions.

Ensure they have a physical address and contact information posted.

Try searching “[company name] + scam” or any other similar variations to find traces of a bad experience by a previous customer.

• Before purchasing from a new supplier, make a call to their company landline and verify the information posted online.

Scammers are more likely to use mobile phone numbers.

You can do a quick check of the physical location of a landline.

• Visit the local Chinese administration government website and verify provided business licenses.

You can even contact the local bureau of industry commerce.

• Verify the supplier’s track record and financial credit worthiness by asking to be provided with their banks reference letters.
• Get a sample of the items you intend to purchase, even if they ask you to pay for it.
• Conduct a factory audit. You could do this by visiting the company physically or asking your local agent to.

You can also have your local agent pick up the goods on your behalf and pay cash on delivery.

Only purchase from a supplier who checks out

Can you Import Food from China to Amazon FBA?

Yes. Import food from China can be sold on Amazon FBA.

To successfully sell China food imports on Amazon FBA, you will be responsible for the following:

Choosing which Products to Sell

When selling imported food from China on amazon FBA, minimize storage fees by choosing products that will sell quickly.

Keep your Inventory in Stock

On the regular, check your inventory levels on amazon and make sure your products stay in stock.

Advertising and Marketing your Products

You may not have to do this if you are selling highly ranked brand name imported food from China.

However for custom products, make sure people can find them by properly advertising.

Is there MOQ for Food Products from China?

When you approach a specified supplier, their quotation will entail all information on the goods including: grade, specifications, packaging, mode of transportation, product capacity and individual policy.

When seeking quotations from multiple sellers, you will notice the variation in each of their minimum order quantity (MOQ).

You will notice that bigger suppliers will have a higher MOQ.

Ordering less has several costs overhead and reduces margin considerably.

This is why suppliers set MOQ

For importation, there is no law that restricts to a minimum order.

However, if you want shipment via sea route with a consolidator, opt for size of one cubic meter.

Small cargo may not have sea option or may be costly.

What are the Steps for Importing Pet Food from China?

Pet food that can be imported from China include processed pet food in sealed containers and packaging.

Others include dog chews, processed pet food from fish material, and animal byproducts for further processing.

To successfully import pet food or any dietary supplements for pets you should know about:

• Your product information, where it’s from and what it contains
• The biosecurity imports health standard (IHS) for your product and how to meet its requirements. If your product does not meet HIS requirements, apply for a permit
• Agricultural compounds and veterinary medicines (ACVM) act requirements
• Packaging and labeling requirements
• Relevant fees andcharges.

If your imported pet food from China does not meet HIS and ACVM requirements, they won’t be cleared at the customs.

Following assessment, an MPI inspector will ask you to reship the product, destroy, treat or ask the product to be held until authorization is confirmed.

The importer is liable of all costs associated with non-compliance.

What is the Cost of Importing Food Products from China?

When importing food products from China, you should understand clearance documents, import duties and custom fees.

Chinese food is a good option for an importer as one can reap huge profits selling online or locally.

The entire international trade process seems complicated as the tariffs depend on the specific food products.

The US customs impose taxes on goods valued at $8 or more.

Values below that are free of tariffs. As of June 3, 2018 the United States increased tax on China’s 50 billion goods by 25%, increasing the cost for American consumers.

Other costs include shipping costs which varies depending on the size of shipment, terminal conditions, transport infrastructure, regulatory and political changes and relevant customs procedures and landing fees.

Depending on your budget you have an option of taking sea freight or air freight.

What are the Requirements for Importing Baby Food Products from China?

While there are no restrictions on the importation of baby formula specifically, the FDA has set up guidelines of labeling for importers to adhere to.

For example, before the formula is imported from China, the label should list all ingredients in the product.

It should also be clearly marked with the country of origin before it’s imported.

FDA requires that imported baby food from China meets the minimum nutritional and safety requirements pediatricians highly recommend infant formulas fortified with iron.

What is the Customs Clearance Process for Food you Import from China?

When food imported from China lands in the US, it goes through numerous processes before it allowed into the local market.

At first, the hold in which food was shipped is assessed to confirm that it meets the set stipulations in regards to the nature of the food items.

The customs clearance department then check the visual appearance of commodity, assessing for possible damage – swelling and also for pest or dirt contamination.

The labels of the products are then checked for concurrence of stipulations under the packaged commodity laws and prevention of food alteration laws.

The labels should not only been in a foreign language but with an English translation with ingredients details in descending the date of manufacture, expiry date, and batch number should be clearly marked.

Other than the general checks mentioned, imported food consignments from China through sea ports, Air Cargo Complexes (ACC), Land Customs Stations (LCS), Container Freight Stations (CFS), and Inland Container Depots (ICD) are referred for testing to the port health officer(PHO).

The customs authorities have a right to destroy the products or re-export them under the relevant rules if they fail the test.

Do you need to Declare Food at the Importing Country’s Customs?

Yes.

A customs declaration form is filled on any special items at the point of exit.

Food commodities in large quantities have to be declared and appropriate levies paid.

Different countries have different regulations governing export of specific food items.

Some items cannot be exported.

What is Quarantine Inspection for Food Imports?

Quarantine inspection is the inspection, regulation and enforcement of regulations at border quarantine stations to prevent entry of agricultural pests and other illegal commodities.

Quarantine inspection of food items is done on imports on entry b ythe quarantine department.

Its main objectives are

• Certification of disease and pest free status, and the standard and quality of quality products.
• Maintaining a local surveillance program in order to intercept commodities of quarantine importance imported illegally.
• Maintenance of ports of entry for a dynamic inspection service that will curb the introduction of diseases and pests through imports and ensure standards of quality is complied with.

Is Quarantine Inspection necessary for Foods you Import from China?

Yes.

A full quarantine and inspection of foods imported from China involves these steps:

• Application acceptance
• Inspection and review
• Quarantine and treatment in quarantine
• General appraisal
• Release of commodity and archiving

For specified food items, further scrutiny or quarantine processes depend on the commodity and its physical nature, certification obtained for the product or the history of compliance of the importer.

A simplified procedure may apply to importers with great compliance records.

Additionally, for commodities that do not require random sampling, an importer may submit a written compliance guarantee and have the goods directly released.

Has the COVID 19 affected Importing Foods from China?

Yes.

After the outbreak of COVID-19, agricultural products from China plunged drastically.

China exports increases by 11% according General Administration of Customs’ data.

The main reason for the dramatic decline can be assessed in two ways:

First, the restrictions of trade imposed of agricultural commodity from China by several importing countries

Two, the sudden disrupting of agricultural exports’ supply chains.

Since workers stayed at home, many export producing firms remained shut.

In addition, transportation control increased fees. 70% of respondent firms on a survey experienced an increase in logistical fees.

Further, the domestic ports efficiency of operation has declined and resulted to reduction in capacity of transportation, with some banning trade ships from other countries from docking.

Furthermore, some countries took advantage of the pandemic and set up measures to bar importation of agricultural commodities from China.

Other than activating a short term chain of supply and logistic interference, China’s agricultural exports will be affected for longer as a result of decreased demand for agricultural imports caused by the global economic recession during the pandemic.

Note that whenCOVID-19 was declared the as a Public Health Emergency of International Concern (PHEIC) by World Health Organization (WHO).

At least 17 countries announced measures restricting importation of agricultural products from China, especially animal products and live animals.

How do you Import Food from many different Suppliers in China?

If you’re purchasing your food imports in wholesale or from different suppliers, here are some tips you can use:

Conduct a Research

Before purchasing from any supplier, you should conduct a market search and identify those with the best products to maximize value for money.

Cheapest imports are not always the best and you should not rush into huge discounts and deals.

Sometimes, a supplier may have access to other suppliers of complimentary goods.

When conducting your research, ask the suppliers about other suppliers.

Find Good Suppliers

Be careful of fraudulent sites and scammers when purchasing online.

Check for feedbacks and reviews of other customers to identify the best possible suppliers.

If the market shows a favorable response when you list a few for sale, it should be safe to increase order quantities.

Place an Order

After identifying your suppliers,

In this guide, you will find all information you’re looking for about letter of credit.

Remember, this is a useful documentary credit you can use when importing from China.

So, before going for letter of credit, read this guide to get everything right.

What is the Meaning of a Letter of Credit?

A letter of credit can be defined as a document resembling a letter that is issued to the seller to guarantee timely and correct payment of goods or services.

The buyer’s bank is responsible for issuing this document.

In case the buyer fails to meet the payment terms, the bank will be responsible for clearing the payment of the goods.

Over the years, a letter of credit has increasingly be accepted by several traders in international trade owing to factors.

This includes; distance, difficulty in knowing the other party, and different laws in every country.

What are the Benefits of Using a Letter of Credit?

To begin with, a letter of credit is preferred due to the safety associated with it.

Unlike other methods of payment, the risks are greatly minimized.

A bank is responsible for making the payment and therefore ascertaining the buyer’s creditworthiness doesn’t pose a major threat.

Besides that, let’s have a look at other reasons why a letter of credit is preferred by most importers and exporters;

• A letter of credit allows the exporters to receive timely payments.
• Finance is an important aspect for any business to thrive.
• Timely payments facilitate proper and smooth planning of business affairs.
• Delivery schedules are well adhered to when using a letter of credit.
• As compared to other payment methods, the seller might keep on re-adjusting the delivery schedule.
• This in turn causes inconveniences on the buyer’s side.
• Letter of credit facilitates the peaceful settling of transaction disputes.
• All necessary documents that are needed in a letter of credit are outlined thus avoiding any confusion.
• Because of a letter of credit, an exporter can easily secure pre-order financing.
• There’s the protection of the buyer in that payment is only made once there’s the fulfillment of the required terms and conditions.
• An Importer is in control of the shipping dates of purchases being made.
• The delivery times are well adhered to by the exporter hence efficient operations and planning of his or her business.
• A letter of credit facilitates the growth of a business.
• Importers can trade with other foreign importers without worrying about trusting new vendors.

What are the Main Features of a Letter of Credit?

There are five main characteristics possessed by a letter of credit as explained below;

• Revocability – A Letter of credit can either be revocable or irrevocable.
• The bak that issues the financial document can decide to revoke a letter of credit anytime without notice.
• Bear in mind that it’s impossible to confirm a revocable L/C. Additionally.
• The revocable document is rarely used other than to provide guidelines for shipment.
• Negotiability –Just as the term implies, letters of credit are negotiable.
• For it to be negotiable, a letter of credit should make an assurance that it will pay on demand or at a specified time.
• Transfer and Assignment- Letters of credit that are domestic and administered by the UCC can be transferred as often as you wish without being ineffective.

On the other hand, international letters of credit can only be transferred once.

Only when a letter of credit states that it can be transferred, the seller has no rights to assign the right to draw.

• Sight and Time Drafts – Letters of credit always require the seller to present the stated documents to receive payment.

A Draft/bill of exchange refers to a written order to a party requesting payment to a third party.

Sight and time are the two types of drafts normally used in letters of credit.

The difference between the two is that a sight draft is payable immediately it’s presented for payment while a time draft is not.

Which Parties are Involved when Using a Letter of Credit

There are 4 main parties namely; the exporter, importer’s bank, an importer, and the exporter’s bank.

Aside from these, other parties that might also be present are not limited to;

• Discounting bank – Just as the name implies, a discounting bank discounts a draft after acceptance by the accepting bank.
• Accepting bank – An accepting bank is responsible for honoring the letter of credit and transferring the requested funds to the client.
• Drawer –In simple terms, the drawer is the party that demands payment. This can either be the exporter or seller of goods.
• Reimbursing bank – With approval from the issuing bank, reimbursing bank reimburses the drawer bank presenting claims under the letter of credit.

Not only does it apply to the drawer bank but also other banks that submit claims.

• Applicant – An applicant is the one responsible for opening a letter of credit.
• In this case, the buyer stands to be the applicant and he or she is required to follow the term and conditions as stated in the purchase order.
• Issuing bank – Not only does an issuing bank release payment after delivery of documents from the supplier but also takes part in the opening of the L/C.
• Paying bank – A paying bank can be described as a branch of the issuing bank.
• Drafts are paid to the paying bank.
• Drawer bank- This refers to the bank in which the drafts are to be drawn.
• Negotiating bank – It is the beneficiary’s bank and its role is to certify that the documents meet the terms and conditions stipulated in the letter of credit.

How Does a Letter of Credit Work?

A buyer’s bank remits a specified amount of money to the seller’s bank once the set terms and conditions are met.

The buyer is required to come up with the terms and conditions under which he would like to purchase the cargo.

This list should contain the following details;

• Goods description
• Quantity of goods
• Documents required
• Technical description if any
• Latest shipment date
• Details of the person who should be notified upon arrival of goods.
• Mode of transport to be used
• Type of port pairs to be used.

A letter of credit is sent to the exporter and his or her bank.

The bank of the importer is the one responsible for issuing this document.

Afterward, the exporter’s bank goes through the document to confirm that the submitted document is valid.

Thereafter, the exporter prepares the goods and documents needed which shall be provided once the shipment is done.

His bank counter checks to make sure that the documents are the right ones as per the L/C specifications.

After that, the bank pays the exporter after it is assured that the documents conform to the requirements as outlined in the L/C.

The seller will be paid according to the money agreed upon between her and the importer.

All the documents are then sent to the bank of the buyer for it to confirm all details against the L/C.

Once satisfied, they repay the receiving bank the money that they paid to the sellers.

How Many Categories of Letters of Credit are There?

There are several kinds of letters of credit.

Here are some of the commonly known;

• Revocable – A revocable L/C can be changed at any time without notifying the beneficiary.
• An issuing bank is the one responsible for performing such duties.
• Irrevocable – Unlike the revocable L/C, an irrevocable one cannot be altered unless the parties involved agree to do so.
• Transferrable –It allows the exporter to carry out credit transfers to another beneficiary either in full or partial.
• Confirmed –It guarantees payment of goods once the seller meets the requirements of the letter of credit.
• Back to Back – Back to back involves two L/Cs which are meant to secure financing for one international transaction.
• Unconfirmed – With an unconfirmed letter of credit, only the issuing bank is responsible for payments and negotiations of the L/C.
• Fixed- A fixed letter of credit not only has a fixed period but also a fixed amount.
• Revolving – A revolving letter of credit allows a customer to make multiple transactions up to a certain limit over a longer period.
• Red clause –A red clause gives an exporter authority to avail the pre-shipment finance.
• It is normally applicable when the supplier is unable to source goods due to lack of enough funds.
• Sight- As soon as the goods are delivered with the required documents, a sight letter of credit confirms the payment.

Do you Need any Documents when Opening a Letter of Credit?

Yes, you do. Some of the required documents fall under the following categories;

• Commercial documents
• Financial documents
• Shipping and transport documents
• Official documents required by the importer’s country
• Insurance documents

Some of these documents are not limited to;

• Certificate of origin
• Consular or Customs invoice
• Air Waybill
• Bill of lading
• Inspection certificate
• Insurance certificate
• Commercial invoice
• Health certificate of Phytosanitary Certification
• Packing list

Is a Letter of Credit a Safe Payment Method when Importing from China?

Quite simply, Yes! Many Chinese suppliers prefer using this payment method as it poses no risks to both parties.

A letter of credit is mostly useful when making bulk purchases.

In as much as a letter of credit is quite safe, it also has limitations.

Therefore it’s important to make a wise choice on reasonable grounds before choosing it.

Who Incurs the Cost of a Letter of Credit?

The beneficiary as well as the applicant is responsible for the payment.

The charges might vary depending on the following main factors;

• The nature of the letter of credit.
• Pre-existing agreement between the importer and exporter.

How Much Does a Letter of Credit Cost?

Generally, it will cost you 1% of the amount stated in the contract.

For instance, if an importer requires L/C worth $100, 000 .

The letter of credit covers 10% of the contract ($10,000) the importer will need to pay $100 for the L/C.

 Are There Formalities for Opening a Letter of Credit?

The importer’s bank takes the responsibility of opening a letter of credit account on behalf of the applicant.

Opening an L/C account is not much of a hassle.

All you need to do is approach your nearest bank and fill the necessary application forms.

Thereafter, the issuing bank will evaluate the application and approve it.

What do L/C 90 Days Mean?

LC 90 days simply means that the amount of money promised in the letter of credit will be due in 90 days.

Just so you should know, a letter of credit can be LC 90 days, 60 days, or LC 30days.

Both the LC 60 and LC30 days have similar meanings to the LC90 days but with different timelines.

Can you Verify a Letter of Credit?

Yes, you can verify a letter of credit by checking the factors below;

• Check the irrevocable structure of the letter of credit and ensure that it’s not stated that the letter of credit is “revocable”.
• Confirm the date of issue, date of expiry, and the latest date of shipment. Check and verify the following;
• Ensure that shipment can be made before the latest date of shipment.
• Confirm if it’s possible to hand over the document before the expiration of the letter of credit.
• Also, check where the letter of credit expires.
• Verify the issuing bank and ensure that it’s a valid bank.
• Ensure that you check the contact and location details of the applicant and beneficiary and confirm that they are correctly stated.
• Look into the letter of credit currency and the amount and ensure that the amount and currency are correct.
• Examine the description of the goods and services and check whether it matches the sales contract.
• Also, ensure that the goods are covered under the commercial invoice.
• Confirm the documents that are requested by the L/C.
• The terms that are outlined in a letter of credit should match the sales contract.

How Does Bank Guarantee Vs Letter of Credit Compare?

These two documents are more or less the same in the following ways;

• Both of them instill confidence in the participating parties.
• Both assure the third party that the financial institution will pay the goods just in case the borrowing party fails to do so.

On the other hand, they differ from each other owing to the following reasons;

While a letter of credit is concerned about the performance of the transactions of the seller’s credit risk.

A bank guarantee only offers compensation once the buyer defaults.

• A letter of credit is meant to fulfill the payment once the exporter ships the goods.
• On the other hand, a bank guarantee is claimed in cases where the buyer fails to accomplish his requirements.
• While a letter of credit has four main parties (importer, exporter, negotiating bank, and advisory bank).
• A bank guarantee involves three parties which include; importer, banks, and exporters.

How Should I write a Letter of Credit?

This should not be much of a hassle.

First, you need to stipulate the terms to be followed by both parties.

In case the exporter agrees but fails to meet the set terms, you might be qualified to get some or all of your money back.

Keep in mind that a letter of credit appears to be like instructions and therefore you will only include the basic details.

Some of the details you should include are not limited to the exporter’s details and their receiving bank together with the amount to be transferred.

Lastly, sign the letter to formalize the commencement of the transaction.

What is an Advising Bank in LC?

Once the advising bank gets approval to open the letter of credit; it has the responsibility of informing the exporter.

Normally, this bank is located in the exporter’s country.

It also creates awareness of the conditions of the credit to the exporter.

Keep in mind this same bank can as well act as a notifying bank and a negotiating bank.

What is the Significance of the Advising Bank in L/C Transactions?

Advising bank has significant roles to play in a letter of credit transaction.

Here are some of them;

• Advises the letter of credit to the exporter.
• The advising bank verifies that the information/ advice contained in a letter of credit is in line with the terms and conditions of the credit.
• The advising bank is responsible for scrutinizing the letter of credit.

What is the LC Expiry Date?

LC expiry date refers to the validity period under which the exported documents need to be submitted with bank to negotiate the documents.

The exporter is required to follow the guidelines in the letter of credit as he submits the documents with bank after export.

What is the Difference Between LC Expiry and Shipment Date Expiry?

A shipment date expiry refers to the last date that the goods need to be shipped as agreed upon in the letter of credit.

Alternatively, the LC expiry refers to a specific date on which the letter of credit is expected to be invalid or expired.

The expiry date should not exceed the date of the final disbursement.

Is Telegraphic Transfers the Same as Letter of Credit?

No. These two payment methods differentiate in a manner that;

• Telegraphic transfer involves the electronic transfer of money from one bank to the other.
• This happens when you are ready to pay for your goods.
• Once the money is received, goods can now be shipped and you can sign closing documents during the sale period.
• A letter of credit is an instruction from the importer to a foreign bank.
• This helps to pay the exporter once all the conditions in the letter of credit are met.

What are the Disadvantages of Using a Letter of Credit as a Payment Method?

A letter of credit has several advantages but also you need to be aware of a couple of drawbacks associated with this payment method.

Some of these cons are not limited to;

• It is expensive – All banks charge for their services and the cost can shoot up depending on the features needed by the parties.
• Both the exporter and importer are required to pay a fee.
• .Time-consuming- A letter of credit takes time and this can lead to delays and other administrative problems.
• Keep in mind that it is a conditional payment and making a complying presentation might also be time-consuming.
• It has sensitive expiration dates.
• The issuing bank is the one that is dependent on when it comes to making the payments.
• Currency risk due to the fluctuations in the market.

Can Documents be Dishonored once Submitted?

 What Should be Done if Documents are Dishonored?

Yes, the documents can be dishonored once the beneficiary presents them.

The truth of the matter is that documents can be dishonored when they are found not to comply with the guidelines of the L/C.

In such a situation, below are some of the actions you can choose to take;

• Correct the document – This is mostly applicable when the shipping company of the beneficiary can correct the discrepancies.
• This can happen within the presentation of the document period.
• If it cannot be corrected, negotiation of the draft can be requested by the beneficiary’s bank with permission from the issuing bank.
• Lastly, the documents can be sent to the issuing bank on “approval “grounds.
• The documents will need to be sent to the importer only when the importer fails to pay or accept.

What is the Length of Credit Period in a Letter of Credit?

On average, 180 days is the accepted length of credit period in regards to most government regulations.

However, the buyer can decide to either choose number of days between 30  to 180 days depending on his or her preferences.

Is Paying Interest Applicable in a Letter of Credit?

No, it’s not. As a customer, you don’t need to pay any interest.

Keep in mind that your bank will also charge some fees for its services.

What is the Meaning of Advice of Credit?

Once a party requests credit, he or she is issued with advice of credit to confirm that the application request has been approved.

This financial document contains content such as information on how one can extend the credit.

The bank informs the other party that a corresponding bank has opened a letter of credit in his or her favor.

Although most Chinese companies accept letter of credit, they also allow for alternative payment solutions.

For any advice or consultations on how to pay Chinese suppliers, contact Tj chinafreight now.

Blind Shipments have become increasingly popular in the international shipping scene.

While the practice is relatively simple, you must understand what Blind Shipment means.

You need to know the benefits of Blind Shipment, associated risks, and how you can enforce blind shipping in your business.

Here is a detailed overview of Blind Shipment.

What is a Blind Shipment in International Shipping?

Blind Shipment is a shipping practice where one or more parties to a shipment are ‘blind.’

In this case, the parties are unaware of who is the shipper, consignee, or both.

This information is omitted to deliberately conceal the identity of the shipper to the customer or vice versa.

To understand Blind Shipment better, let’s look at an example.

Suppose, as a customer, you order jewellery from distributor x.

But distributor X doesn’t have a physical inventory of the product you ordered.

In this case, he/she decides to ship the jewelry from China through a 3^rd party vendor but doesn’t want you to know this.

To conceal this information, distributor x will provide your shipping address and instruct the vendor in China to ship the product/s directly to you.

In addition to this, x will also instruct the shipper to omit their details.

In this case, the jewelry will be delivered to you as if it has been shipped directly from distributor x.

Why use Blind Shipping

Distributors use blind shipping for various reasons.

Mainly, it is for the benefit of saving time and cost.

By shipping blind, your goods will have fewer distribution channels to go through.

This is because the goods will go directly from the supplier to the customer under your name (the distributor).

Secondly, blind shipping helps you to conceal the supplier’s details.

In Blind Shipment, the supplier’s information is not included.

Instead, only the distributor’s details are shown, so the customer can’t know the origin of the Shipment.

Generally, blind shipping allows you to keep the suppliers, importers, and other aspects of your supply chain confidential.

Typically, this type of shipping is done through a 3^rd party (shipping agent) who books and controls freight movement.

This also hinders the supplier from attempting to do business directly with your customers, or vice versa.

In a nutshell, blind shipping helps you control competition as it put a limit to who has access to your suppliers or customers.

Difference between Blind shipping and Double-Blind shipping

Blind shipping may be inexpensive for your business, but it is somewhat unreliable.

While struggling to hide the vendor’s information from the customer, the vendor may still access your customer.

With this, the vendor can quickly contact the customer and ask to do business with them directly.

Double-blind shipping enables you to maintain the anonymity of both your supplier and customer.

This way, the vendor cannot contact your customer and vice versa.

Who can use Blind shipping

Generally, blind shipping is for anyone who wishes to conceal shipment information from one or more parties in their supply chain.

Distributors, importers, drop shippers, manufacturers, sourcing agents are all legible to use blind shipping.

Benefits of Blind shipping

Blind shipping comes in handy and has several benefits.

Maintain a Competitive Advantage

By default, dropshipping is applicable where a distributor lacks the physical goods to meet the customer’s order.

Typically when you dropship goods to the customer, your supplier will deliver essential details about the price and contact information.

Your competitors can use these details to rival you in the market.

But you want to keep this information hidden so that no one gets a hint of where you’re sourcing your products.

Blind shipping helps put everyone in the dark about your operations and, as such, guarantees you safety in the market.

Protect your Supplier

It is common for suppliers not to want their information, such as contact details and address in public.

This could be for many reasons, such as exclusivity deals they’ve signed, among other things.

In this case, blind shipping is proper.

It allows you to protect your supplier’s privacy by keeping details about their location and operations confidential.

Business Technique

You already know that you don’t have to have a physical store of goods to fulfil your customers’ orders.

This is especially if you’re into the consumer products business.

As a business, you can embrace blind shipping as a strategy to reduce risk exposure.

You can do this by shipping only when a customer has placed an order.

This reduces the chances of deadstock, among other losses and inconveniences that accompany keeping a physical inventory.

Higher Profit Margin

Of course, with blind shipping, a business will not have any inventories and many employees.

Your team needs only to take customers’ orders and direct them to the vendor to do the shipping.

In the long run, if your reputation and services are high, you will command a large customer base.

As a result, this will drive sales leading to good returns.

Ability to Retain Clients

The only reason that makes customers loyal to a single brand is the high level of satisfaction and convenience.

Therefore, with proper blind shipping plans, a distributor can hang on to vendors’ hard work and claim exemplary results.

Blind Shipment in E-commerce

In addition to distributors, suppliers, and importers, many online stores and sellers like Aliexpress use Blind Shipment.

These sellers use Blind Shipments to protect their supplier sources.

This helps to prevent customers from jumping ship to do business directly with the suppliers in the future.

Blind Shipment allows e-commerce sellers to reach more customers while avoiding the expense of maintaining a physical stock.

This type of Shipment from e-commerce stores come with only the store’s details.

Nothing about the supplier or person that fulfilled the order is included in the order.

Blind shipping is advantageous for e-commerce stores acting as intermediaries with the need to hide their product sources.

How Blind Shipments Work

As already mentioned businesses use blind shipping to simplify the shipping process and also mitigate related costs.

The consignee in a Blind Shipment will essentially buy goods and have them shipped directly to their customer.

Here is a real-time scenario to help you understand the blind shipping process better.

So we have three parties here;

• Distributor (you)
• Vendor
• Retailer or customer

In this example, let’s assume that you run a business in Manila, Philippines, and wants to ship furniture to a customer in Cebu.

You buy the furniture from a supplier in China to resell to the customer at a marked up price, which is slightly higher than the wholesale price.

To fulfill this order cost-effectively, you decide to request the furniture to be shipped directly from China to Cebu.

You also decide to blind the Shipment so that Z thinks that the furniture arrived from Manila, rather than from the Y in China.

Note that Blind Shipments usually have two bills of lading documents: one with the correct details and another, a dummy used to fulfil the order to the customer.

In this case, you will find a shipping agent who will then file two BOLs.

The real bill of lading will have the correct shipping details- pick up in China and delivery in Cebu.

You will get the real BOL and pass it along to your contact in Cebu where the furniture is being picked up.

The shipping agent will contact the shipping company to set up the pickup from China and delivery in Cebu.

The carrier will then make the pickup in China as per the demand.

Once the furniture shipment is confirmed as picked up and in transit, the shipping agent will contact the carrier.

Your agent then supplies them with the dummy BOL, which is to be used at the time of delivery.

In this second bill of lading, the shipper’s address will read to your address in Manila.

The carrier will then confirm that they will use the dummy BOL at the time of delivery in Cebu.

After this, your agent will only track the Shipment until it arrives at the customer’s address in Cebu.

At the time of delivery, the BOL will read that the furniture was shipped from Manila.

But in reality, the goods will have come from China.

Disadvantages of Blind shipping

Despite being a perfect solution for startup shippers, Blind Shipment has several problems associated with it.

As a shipper, you have little control of the products shipped to your customers.

In the case of damaged or faulty products, the blame is directed to you.

When customers complain about faulty products, you risk losing your reputation, and your customers can lose trust in you.

Also, you risk having issuing refunds in cases where customers demand it.

Information is freedom for customers. Removing sensitive information about the product may paint a bad image of the distributor’s products to the customers.

With many blind shippers across the globe, you are not alone, and the only hope rests in having good marketing skills.

Unless you are already established, you will spend a lot of returns on marketing.

Finally, blind shipping may prove expensive to your customers, depending on the season.

You rely on suppliers and the shipping company to meet your customers’ needs.

If they increase their prices and rates, you are also forced to increase.

How to prepare a Blind Shipment

Preparing Blind Shipment is not as easy as it may sound.

You need to be careful to be able to handle everything without making mistakes.

If you think your business can benefit from Blind Shipment, here is a quick procedure for preparing your customers’ next Blind Shipment.

Hire a Freight forwarder

The first step in making your shipment blind is to find a capable freight forwarding company or shipping agent.

A good freight forwarder should be knowledgeable in Blind Shipments.

He/she should also have the risk experience and connections to help manage your Blind Shipment tactfully.

Luckily, many freight forwarding companies and agents are offering these services at affordable rates.

You should find one that matches your needs and budget.

Create two separate Bills Of Lading

With a capable freight forwarder in hand, proceed to prepare the Shipment.

Firstly, the forwarder, through his connections, will help find a suitable carrier for your goods.

Remember we said that Blind Shipments require more than BOL.

As such, the forwarder will request two separate bills of lading.

Note that a bill of lading (BOL) document provides relevant details about the Shipment, such as the shipper’s name, the consignee, and the shipped quantity.

So when dealing with Blind Shipment, there is two bills of lading involved.

The first bill of lading, as you know, is the original bill of lading that shows the consignment’s actual information.

This bill of lading is hidden from the blinded customer.

The second bill of lading is the dummy/falls bill.

This bill is faked, and some details about the supplier omitted.

On delivering the goods to your customer, the carrier will switch the bills of lading and issue the customer with a fake bill of lading.

Let your Shipper Handle the Rest

After doing all that is necessary and providing the customer’s address, your work is done; the remaining part is for your shipping agent to handle.

Blind Shipping vs. Dropshipping; How do they Compare/

Blind shipping and drop shipping are somewhat interrelated.

When discussing the concept of blind shipping, it is usually within the context of drop shipping.

Therefore, understanding the dropshipping process can help you figure out the puzzle that is blind shipping.

Remember that the conventional business model is such that a business has physical inventory from which customer’s orders are delivered.

In contrast, the drop-shipping model eliminates physical inventory.

Instead, it allows businesses to keep virtual stock.

Although there is no physical inventory in dropshipping, businesses can still deliver customers’ orders without much trouble.

Please note that the drop-shipping model has a clear cut working system.

In this, the virtual store only functions as a marketplace for suppliers’ goods.

And since branding and customization costs tend to add up too quickly, many drop shippers often opt for blind shipping.

No doubt, dropshipping is convenient and saves costs.

However, it is riskier as you can quickly lose clientele if you do it straightforwardly.

Openly indicating the shipper’s and customer’s information makes it easy for them to contact each other and negotiate to work directly in the future.

Worse still, your competitors can order from your store in a bid to find out your supplier source.

Blind shipping provides a solution to this by allowing drop shippers to blind their return addresses.

Understand that blind shipping is not 100% guaranteed as a relatively high cost of shipping usually accompanies it.

Apart from this, there is also an additional link to the supply chain.

This tends to increase the risk of errors and losses during shipping.

Remember that blind shipping requires partnering with a capable shipping agent.

The problem is that finding a trustworthy and reliable agent to manage your Blind Shipment safely is not easy.

Comparing blind shipping and drop shipping, you should note that both require a substantive investment to ensure success.

Shippers in both scenarios need to invest in proper marketing and customer service tools; otherwise, they might not be effective for your business.

The good thing with drop shipping is that it doesn’t have minimum volume requirements like blind shipping.

You can always place orders to suppliers even when the customer needs just one piece of the product.

Likewise, Blind Shipments tend to become unnecessarily costly when delivering small volumes.

This is because of the minimum cost of handling the blind BOL.

Importance of Blind Shipment to drop shippers.

Blind shipping offers several benefits to drop shippers.

Primarily, it provides a low-cost strategy to enter any business niche.

All drop shippers need is strong marketing skills and an online platform where customers place their orders.

The traditional business setup requires setting warehouses and offices, which are expensive to run.

Blind Shipment allows shippers to have goods directly delivered to customers.

Blind Shipment provides shippers security in terms of guaranteed future existence.

By concealing information about suppliers and manufacturers, your customers will continue placing orders, and competitors cannot identify your suppliers.

Under blind shipping, you will retain your customers because the shipments are directly delivered to the customers.

The time between placing orders and deliveries is thus short.

Rules of Blind Shipment

Blind shipping requires keen attention from all parties involved.

One mistake made can allow customers to access critical information about the supplier or customer in the case of double-blind shipping.

The following rules apply to blind shipping:

• Distributors must have valid credit cards for payment
• Carriers can accept shipping of goods under Blind Shipment but are not responsible if the objective of blind shipping is not achieved.
• The third-party (in this case, the distributor) shall request blind shipping before the goods are picked up for shipping. In most cases, carriers reject late requests.
• You must use two bills of lading, both of which attract a payment.
• Charges that relate to the request of blind shipping shall be paid by the distributor before shipping.
• The original bill of lading shows the supplier/manufacturer’s actual details, the units, and the carrier shipping on behalf of the shipper.
• The dummy/falls bill of lading contains the distributor/third-party’s details and the owner of the goods being shipped. It also contains the zip code and address of the customer to receive the goods.
• The final invoice to be used in the shipping process is generated from the dummy/false bill of lading.

Cost of Blind Shipping

The cost of blind shipping is not fixed and depends on several factors, such as the agreement between the supplier and shipper.

Because you purchase goods from your supplier who then delivers to your customers directly, the cost of blind shipping can be the:

• The cost you pay the carrier to deliver the goods to the customer
• Fees you pay the freight forwarders to handle your goods
• Any other fee that you incur from placing an order with your supplier until the order reaches the customer

When calculating the cost of blind shipping, remember to add up all related expenses, so your freight bill is as accurate as possible.

Problems that can Arise during Blind Shipping and How to avoid them

The following are the main problems associated with blind shipping:

Low-profit Margins

For the goods to reach the target customers, a distributor must place an order with their supplier, hire a freight forwarder and have the carrier handle shipping. ‘

Along this supply chain, everybody gets a commission, which usually depends on the season.

During festive seasons, shipping is expensive, and suppliers hike prices, reducing profits for the distributor.

Since the business operates online, many such distributors are established and are willing to offer the goods at lower prices.

To beat them, as a distributor, you lower your prices, which eventually lowers profit margins.

Low Control of Suppliers Stock

You want your customers to have orders shipped to them throughout the year.

However, this is usually not the case because your suppliers run out of stock.

As the distributor, you are solely responsible to your customers; remember they have no connection with the supplier.

It would help if you communicate any possible delays on time or find other suppliers to avoid disappointing customers.

Problems in Setting the Right Prices

As a distributor, your profit margin depends on the difference between your marked up price and the wholesale price.

Doing market research on wholesale prices helps you set reasonable prices for your customers.

However, problems arise when suppliers offer their products at low wholesale prices but recover the costs by charging hefty shipping costs.

Finding the Right Seller

You can have a vast customer base making orders.

Still, the problem will arise when it comes to finding a reliable seller.

Not all sellers who claim to meet your demands do so.

Therefore, investing in finding the right supplier will prove beneficial in the long run.

Communication Problems

Proper communication is core in any business venture that involves one or two people.

Transparency is paramount in blind shipping between the supplier and the distributor.

When customers place an order, you should tell them how long it would take to deliver the order.

Delivery is a factor determined by the supplier and the shipper.

Sometimes it becomes difficult to fulfil customers’ orders as promised because of a lack of transparency and proper communication from the supplier and carrier.

Blind shipping is complicated and requires proper analysis of every little element of it.

Solving this problem lies in conducting thorough due diligence at the start.

Research your suppliers’ history before settling to use their services.

Also, creating good communication behaviour ensures transparency and trust.

Manage your Blind Shipment with Tj chinafreight

Blind shipping from China can be overwhelming. It would help if you had a reputable business partner who is well versed in dealing with Blind Shipments.

If you are looking for the best partner to handle your Blind Shipment from China, Tj chinafreight is the best choice.

At Tj chinafreight, we value your business potential and are always available to ensure success in every aspect of your business.

Our rates meet your business budgets, and our team of professionals is on standby to answer any questions you raise.

Leave us a message, and we will gladly reach out.

All information you’re looking for about bobtail fee is right here.

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

What is a Bobtail in Shipping Terms?

Let’s first understand what a bobtail is.

It is simply a truck that travels without a trailer.

It is called a bobtail because the tractor drives around without its tail which is usually 24 feet.

Bobtail trucks are considered cargo-free; they don’t generate any income for the owner.

Bobtailing may occur because of the following reasons:

i. When the truck driver moves from the terminal to the warehouse to pick up a loaded trailer.

ii. When he/she travels back to the end-stage after dropping off the trailer containing cargo.

However, truckers don’t like bobtailing for some reasons like:

i. It’s dangerous and prone to accidents. The truck stability and braking level are not equivalent.

ii. They don’t earn cash from it but they have to fuel the trucks.

iii. It’s more or less a seasonal thing because it’s highly affected by the weather such as rain or snow.

What is a Bobtail Fee?

Bobtail Fee is also Referred to as a Drop Fee.

This is a fee charged by a tracker to drop off an FCL (Full Container Load) at a warehouse and pick it up once it has been unloaded.

The driver is contacted to pick up the empty container after unpacking has been done.

This may take up to 48 hours.

The amount charged by the driver reflects on your invoice or Flex port quote as a drop fee.

The chassis fee also appears on the invoice.

Is Bobtail the same as Live Unload?

Not really. They are different however most people interchange the two trucking terms.

As mentioned above, in bobtailing, the driver simply drops the cargo at the warehouse, leaves then come back to pick the container later.

Whereas in live unload, as the term suggests, it’s live.

Meaning there must be actual people during the loading and offloading to witness the process.

The truck driver doesn’t leave the warehouse when unloading is taking place.

Instead, they wait for the workers at the receiving dock to unpack the trailer then he/she leaves with the empty container.

The driver has to book an appointment of the exact time they want live unload to be done.

This process may take 1-2 hours. Usually, drivers consider 1-2 hours’ free wait as they wait for the cargo to be unpacked.

Once the two hours’ elapse, they start charging any additional time in hours.

Some drivers charge $75 per hour.

This wait time reflects on your invoice or Flex port quote as a Trucking wait fee.

The longer they take to unload the goods the more the trucking fee.

Loading a shipment may be done after some time or immediately.

It depends on the situation.

The main difference between these two terms is;

in bobtailing the driver doesn’t wait for the container to be unloaded while in live unload they wait for the container to be unpacked.

When Should You Consider ‘Live Unload’?

Live unload may be a great shipping method.

However, ensure you liaise with your driver early in advance.

Consider live unload:

i. If the goods being unloaded are perishable hence they need to be unpacked before going bad.

ii. If the companies have a lower shipment.

iii. If the cargo you are unloading will take a maximum of two hours.

iv. Bear in mind any time above the two hours is charged a fee.

v. If the goods are palletized (being transported on a pallet) and the warehouse has a forklift. They can help you unload the cargo within the given time frame.

vi. If the goods are fragile and they are not in large quantity.

vii. Therefore, the driver needs to watch as they unload to ensure they handle them with care.

viii. Love unload can be a good option where the parking space is limited.

When should you Consider a Bobtail?

Bobtailing may be a great shipping option:

i. If your cargo cannot be unloaded immediately after arriving at the terminal.

ii. If the goods cannot be unloaded quickly. Meaning if it to be done immediately, it would take more than two hours hence increasing the trucking wait fee.

iii. If the warehouse does not have enough manpower to unload the cargo faster.

iv. If the warehouse is already congested, hence they may need to clear the cargo they have in stock before unloading the ones you have brought.

v. If the cargo contains loose loaded cartons which may take long to unpack.

vi. If the goods are fragile need to be handled with care.

vii. In the process of handling with care, they may take a really long time.

How Much is a Bobtail Fee?

Bobtail fee is charged according to the goods you are shipping.

Usually, the fee is half your shipment.

Meaning you may incur a higher cost if your goods are in large volume and a small amount if the volume is less.

Why Does a Bobtail Fee Occur?

Well, in shipping, containers are mostly delivered either via drop and pick, live unload or drop off.

Drop and pick, the driver drops off the cargo at a warehouse, picks an empty container, and leaves.

Live unload the truck driver gives a specific time for unloading to take place.

If the goods cannot be unloaded immediately or within the given time, the shipper may choose to drop off method.

This way the shipper may save on cost while the trucker saves on time.

It’s a win-win for both of them.

In bobtailing, the trucker drops the cargo, leaves the warehouse then comes back after 48 hours to pick the container.

This may require him/her to make an extra trip to the warehouse hence the rise of drop fee.

How do Trucking Companies Assess Bobtail Fees?

Some of these trucking companies offer shipping and handling services while others have hired their truckers.

If a customer chooses to work with a trucking company, money is paid to the company directly.

The driver is then given an amount they have agreed on.

Knowledge of costs you may incur is fundamental in any business.

Understanding the cost structure helps trucking companies know the cost per mile hence they can charge their shippers.

Trucking helps them know the profit they will eventually make.

They calculate their cost per mile by deducting expenses like fixed cost, variable, and salaries.

Poor bookkeeping can mess up your business.

Does Bobtail Fee Increase with Time?

Every business has a peak and off-peak season.

Equally, in international trade, there are seasons where the goods you are importing or exporting are in high demand and some, where the order is low.

It’s affected by what you are selling and in what season.

Variation in bobtail fee reflects the nature of supply and demand.

Truckers normally take advantage of such seasons.

When the demand for goods is high in some months, they charge a higher fee because they have a lot of work from different customers.

When the season is slow, they charge a lower fee due to the scarcity of jobs.

As a trader, understanding demand peaks can help you in your business.

Is Bobtail Fee Applicable to LCL Shipments?

Bobtail fee doesn’t apply to LCL (Less Container Load).

As the name suggests, this fee is only associated with FCL.

LCL cargo is charged by calculating the volume of the goods.

If you are shipping goods that don’t fill the entire container, instead of transporting partially empty containers, consolidate your goods in one container.

Of course, it depends on the nature of goods.

It will save you time and money.

Who Charges Bobtail Fee?

Bobtail fee is charged by the trucker who you have entrusted to drop off your FCL container at a warehouse and pick it up once it has been unloaded.

Can you Avoid Bobtail Fee? How?

Am sure any route or means you can use to avoid paying fees is music to your ears.

Luckily you can avoid a bobtail fee.

But how?

Here is the catch, once the trucker deposits FCL cargo at a warehouse, then leaves empty, you will be charged a bobtail fee.

To avoid the fee, the truck driver should drop off the trailer, hook up with an empty container, before leaving the warehouse.

This way the trucker may not make several trips to the terminal hence he/she may keep away from the bobtail fee.

In other words, you will go for the drop and pick method instead of bobtailing.

This is very common in drayage shipment.

Is Bobtail Fee Negotiable?

Yes

Negotiation is an in-thing in business; everyone is trying to save their coins.

It has even forced sellers to set a higher price to allow a bargaining window for their customers/clients.

In most businesses, once you come in contact with the service provider, it’s possible to negotiate.

You can settle for a price that is fair to both you and your trucker.

However, they usually have a flat fee they can’t go beyond.

It is easier to bargain if you are shipping volumes of goods regularly using the same trucker.

But if it’s only one offload, it might be hard to negotiate in fact, they may charge you twice the freight rate.

Note prices vary depending on the trucker you are dealing with.

Some may charge a flat fee; others charge doubles your shipment while others don’t charge you an extra fee.

If the terminal is in the delivery location or just a few miles from the port.

Do your research to see who suits you best.

What Happens when Goods get Lost or Damaged in Bobtail?

Truly, we live in an imperfect world. No shipping method will guarantee 100% safety of your cargo.

Especially goods that pass through long routes or need more handling due to liability issues are prone to either loss or damage.

Loss and damage are common in e-commerce and international trade.

In case it happens. Here’s how to go about the process.

i. First thing first, check your luggage thoroughly before signing the Bill of Landing

ii. Report to your carrier immediately; preferably within 3 days either via phone, email, or social media.

iii. Back up your claim with receipts containing the value of lost items. In case the goods are damaged, take a photo and send it as well.

iv. Your claim will be inspected to reveal when exactly the incident happened whether during transit or delivery.

v. Once they confirmed when it happened, they will send you an email if it’s during delivery.

vi. If it was during transit, a claim form will be sent.

vii. The carrier will pursue the claim using your insurance and keep you updated on every step they make.

viii. The process may take 28-30 days.

ix. Once everything is sorted, you will be refunded the amount equivalent to your goods. However, the insurance will deduct 10% (fixed) of the amount for the claim processing fee.

Does Bobtail Fee Cover the Cost of Non-Trucking Liability Insurance?

Bobtail fee doesn’t cover the cost of non-trucking liability insurance.

What is non-trucking liability insurance?

It is a liability that provides coverage when you use a truck for personal activities such as picking kids from school or going for groceries.

Basically, you need it if you are driving the truck for non-business purposes.

Like any other job, truck drivers have off days.

Interestingly, you may find them still moving around with big trucks.

Don’t blame them they got used to them.

Non-trucking liability insurance protects them from liabilities they may incur in the process of doing their businesses.

You may need insurance:

i. If you are driving a truck for non-business purposes

ii. If your motor carrier requires the insurance in a written agreement i.e. lease

iii. If you want to avoid high liability expenses in case of an accident.

Non-trucking liability insurance doesn’t cover goods you are transporting.

It only caters for damage or injury to a third party or business.

It may include the cost of repair of replacement or medical expenses

Some companies are kind enough to offer coverage for trips home after making deliveries.

It is not as wide as other trucking insurance policies hence it’s not costly.

Insurance companies calculate premiums by checking your driving history, no of times you have used the truck for personal use, and limit requests.

What is Bobtail Insurance?

Bobtail insurance is liability insurance that provides protection when you drive a truck without a trailer.

Do I really need bobtail insurance?

You may ask.

Yes, you need it irrespective of the times you drive your truck.

whether you drive under someone else’s trucking authority or if the trucker’s liability insurance that you have protects you while under shipment.

You only need bobtail insurance if the truck you are driving is under someone else’s trucking without a trailer attached to the truck.

For example; a truck driver drops off goods at warehouse A then moves to point B without the trailer.

Bobtail insurance may provide coverage between the two points just in case something like an accident occurs.

Realistically, this bobtail insurance provides a wider coverage as compared to non-trucking liability insurance.

Who Covers Bobtail Insurance during shipping?

The policyholder covers bobtail insurance.

This policy only takes care of liabilities.

It only covers you if involved in an accident while driving a truck bearing another person’s trucking authority with no trailer.

It covers you if you get into an accident while on your way to pick cargo, after dropping a load as you go to pick up more goods, or after you are done with the trips.

Bobtail insurance doesn’t cover driver injuries, damage to your property whether by accident, natural disaster, or even loss of income.

It only covers; Third-party property damage, legal costs, medical bills, and settlement expenses.

The cost of insurance is affected by various factors like;

limits requested, the number of times the truck is used without the trailer, driving history, annual receipts, experience in the industry, number of trucks you own or operate, etc.

The average rates are $35-$60 per month for a million-dollar coverage.

While obtaining insurance, all you need to do is know what you want, collect the information needed, way the options you have then purchase it.

However, the insurance policy may vary from one company to another.

Liaise with cover wallet advisors to help you access companies with the best rates.

Does Bobtail Fee Include Loading/Unloading Costs?

Sadly, it doesn’t.

A bobtail fee only covers for transportation of cargo from the port to the warehouse.

For loading and offloading, you have to pay an extra cost to hire a professional who can assist you in the activity.

Bear in mind the given time is normally 2 hours.

If your team takes longer, you may be charged extra container loading/unloading time.

Choose a team that may save you time and money.

If you want your trucker to unload goods you will pay for the delivery labor fee.

Does the Bobtail Fee Cover Warehousing Costs?

Sure it does.

Once the driver drops cargo and leaves, the appointed team unloads the cargo and provides free time storage for 48 hours.

If the driver takes longer than 48 hours to go for the empty container, you will be charged a demurrage fee.

The demurrage fee is calculated per day; the longer the container stays the more you pay.

Does Shipping Cost Include Fobtail fee?

No, it doesn’t.

The shipping cost only covers for transportation of cargo from the country you are importing from to your county’s port.

You incur other charges depending on the means of transport you will use from the port to the warehouse.

If you choose to use a trailer, you will pay a bobtail fee.

What Happens if you Fail to Pay Bobtail Fees?

Every decision has consequences.

If you don’t pay for your bobtail fee as agreed with your carrier, you may be charged for a per-diem (Latin) or per day fee irrespective of your call date.

You may only be considered if you had prior arrangements.

Per-diem charges maybe $50-$100 per day.

Moreover, it may vary from one port to and carrier to another

Is Bobtail Fee Inclusive of the Cost of Picking up the Empty Container after Unloading?

Yes.

Once you have paid a bobtail fee to the trucker, it’s inclusive of dropping off cargo and picking the empty container.

You don’t have to pay an extra fee.

Is Drop-and-Pick Fee the same as Bobtail fee?

No, they are not the same.

Drop and pick fee occurs when you deposit your goods at the warehouse and hook up with an empty container.

It is therefore less than a bobtail fee.

It has offers sometimes. Belgium for example has a 50% discount on drop and hook done at night or early in the morning.

Bobtail fee on the other hand is a bit costly because the trucker has to visit the warehouse twice.

Which Factors Affect Bobtail Fees?

Bobtail fee is influenced by the following factors;

i. Seasons- there are pick and off-peak seasons.

ii. You will pay a much higher fee if you ship goods during peak seasons as compared to off-peak.

Similarly, drivers charge lesser fees at night and early in the morning because they are not as busy as they are during the day.

iii. Distance- the longer the distance from the port to the warehouse the more the bobtail fee.

iv. The kind of trucker you choose will affect the bobtail fee since the fee varies from one trucker to another.

v. If it’s your first time shipping and you are not familiar with the field, truckers may take advantage and con you.

vii. If you are shipping fewer goods often instead of more goods less times you may pay a more bobtail fee.

How Can you Reduce your Bobtail Fees?

The following ways can help you reduce your bobtail fee:

i. Look for a trucker that suits your budget.

ii. Ensure you have all documentation and logistics needed by the trucking company.

iii. Don’t be too strict to the carriers, allow them to be open-minded with the way they load and offload goods. You may get good rates.

iv. Pre-clear all your cargo and give delivery instructions to your trucker.

v. Send your cargo to the port early in advance to give the trucking company ample time to schedule pick and delivery.

vi. Ensure the loading and offloading team are ready to take action once the container arrives to save on the driver’s time.

vii. If you are dealing with a large volume of goods, hire a logistics company to assist with the fee.

viii. Ship during off-peak seasons and allow at night pick-ups

ix. Develop a good relationship with your trucker.

x. Ship more goods less often.

xi. Look for carriers that are located near your ship point.

What is Chassis Fee?

Chassis fee is charged on ocean containers that are carried by truck.

Meaning if your cargo gets to the seaport then it’s meant to be transported to the warehouse via truck, you will pay for this fee.

Is Chassis Fee the same as Bobtail Fee?

Not really.

They are different however there is a thin line between the two fees.

Both are charged according to the container capacity.

FCL has a fixed rate while LCL is charged according to the volume of the cargo.

Both of them are attached to the trucker.

However, the chassis fee is paid to ocean carriers at the port while a bobtail fee is paid to the trucker.

Chassis fee is meant to encourage the trucker and shipper to use their own chassis for pickup and deliver ocean containers.

Hence it can be avoided just like the bobtail fee.

Can a Reliable Freight Forwarder help you Reduce or Avoid Bobtail Fees?

A freight forwarder can be a great investment in your business.

‘Experience is the best teacher,’ they say.

They have been in this business longer than you.

Hence they know all the tricks, dos, and don’ts.

They can hook you up with carriers who have the best rates.

Similarly, they can show you the best way to avoid paying a bobtail fee other than drop and pick (if any).

What is a Drop-and-Pick in Shipping?

In case you have come across the term drop and hook, don’t get confused.

It’s the same as drop and pick.

Drop and pick means the truck driver drops off the container with cargo at the warehouse.

It is  then picked up a different empty container from the same warehouse, for the next delivery.

They don’t wait.

Trailers are loaded or unloaded before the truck driver gets to the warehouse.

In some companies, trailers being dropped are picked at a different facility.

It’s a fast and effective shipping method; the driver doesn’t have to wait or make several trips to and from the warehouse.

Nonetheless, it can only happen if you have containers coming in the warehouse quite often, or if your company receives a high volume of deliveries.

It’s worth noting that drop and pick doesn’t happen instant; as it may sound.

Sometimes drivers may wait for even 48 hours before receiving an empty container from a company that has unloaded their cargo.

Drivers may receive incorrect trailer numbers; the trailer may be located at the wrong place or sometimes the trailer you need may be behind other trailers .

Therefore, you have to wait for the yard dog to remove the ones in front for you to access yours.

Additionally, the trailers available may not beat the same weight you wanted as a result you may end up issuing an incomplete delivery thus frustrating your customer.

How do you Pay Bobtail Fees?

This may depend on whether you deal with a trucker directly or a trucking company that offers to ship and handling services.

Whichever you decide to use, ensure you work with them hand in hand providing necessary information.

This includes a call date to pick empty container from the warehouse back to the terminal.

Once you agree on the price, terms, and conditions, you can go ahead and pay for the bobtail fee.

That’s it – all information you need to know about bobtail fee.

In case you have any question, feel free to contact Tj chinafreight.

Toilet papers being an indispensable commodity can be imported from China.

China offers quite a variety of Toilet papers, with the right size and quality at reasonable prices.

For you to import Toilet papers from China you have to contact the manufacturer for a good deal.

Why Import Toilet Paper from China

Toilet papers can be imported from China based on a number of factors and reasons as shown below:

i. Price; the prices of Toilet papers from China are competitively affordable and this makes it possible for importing fromChina.

ii. Right size; the Toilet paper from China comes in the right size and design, attracting more imports.

iii. Quality; in every commodity, quality takes the order of the day.

Toilet papers from China are of the right quality that makes people want to import from China.

iv. Moisturized; Toilet manufacturing companies from China go an extra mile by moisturizing the toilet papers giving it a perfect touch for import.

v. Softness; the materials made up of Toilet papers from China are of the right quality giving the user of the commodity softness with no roughness at all.

vi. Color; Toilet papers from China comes in different colors that personalize the user with the color that they most love.

vii. Decoration; toilet papers from China are decorated in such a way that they are appealing to the client and the architectural drawings are on point.

Types of Toilet Paper made in China

China Manufactures Different types of Toilet papers for Different Functions such as:

i. Restaurant Toilet paper; China manufactures Restaurant Toilet papers that are used for different functions within the restaurant.

They manufacture toilet papers designed for restaurant purposes and are placed on the walls or floors of the restaurant.

ii. Kitchen Toilet papers; Toilet papers from China have been designed to address Kitchen matters.

This is through cleaning the surface of the kitchen table, dusting, and also clearing up spills.

It is designed in the form of sheets and can only be used once.

iii. Serviettes Toilet papers are the kind of toilet paper that are designed to ensure the utmost hygiene.

This is through cleaning of the waters spills on hands and also for touching and lifting foot items.

iv. Bathroom Toilet papers, this is the type of toilet paper that are used to address feces areas or perhaps cleaning the area of a urinal and other bodily fluid releases.

v. Hotel Rooms Toilet papers, this a folded toilet papers used by the hotel as a sign of good hygiene of the hotel

vi. Hotel Napkins, this are the type of toilet papers that are usually placed at the table to help in wiping of the mouth and fingers during a meal.

vii. Facial Toilet papers, Facial Toilet papers are designed to wipe the face either to remove dust or water or perhaps sweat.

viii. Hand Towel Toilet paper, this are hand toilet papers designed at the washroom areas to wipe water from the hands.

ix. Medical Toilet papers, this are sterilized toilet papers use by the hospital to clean up the wound or surfaces.

Where to Find Toilet Paper to Import China

There are quite a number of places you can find toilet papers to import from;

i. Online, Alibaba is the best online shop where you can import your Toilet papers from.

ii. You only need to log in and place your order by choosing, the type of toilet papers with your specification.

iii. Wholesale markets, there are several wholesale markets that offer to import toilet papers from China to your doorstep such as Made in China.

iv. Jumbo rolls which provides a range of toilet papers for shipment.

v. Direct factories, some clients prefer to import directly from the manufacturing company such as Double a Paper Manufacturers, China Paper roll.

vi. You can contact this companies for a good offer and discount on toilet papers.

How to Vet Toilet Paper Suppliers from China?

There is no specific way to vet Toilet paper suppliers from China.

However, the following guideline may be useful when trying to Vet for reliable toilet papers suppliers from China.

i. Referrals, good toilet papers suppliers have referrals from customers across.

Those suppliers with no referrals at all, gives you a big reason to think about doing business with them.

ii. Proven Track record; most supplier may have proven track record on their website or perhaps through ratings on their websites.

If the rating is poor, then it will mean they are not the reliable suppliers and if their rating is good then they are reliable suppliers of toilet papers.

iii. Communication, the level of supplier communication determines if you are going to import toilet papers from them.

iv. Financial stability; determining the financial strength of the supplier is very vital.

A supplier with delayed orders is proof that they have financial constraints, unlike a supplier who delivers toilet papers on time and as agreed upon.

v. Location; the location of the supplier of Toilet paper will determine the risk involved with the supplier.

Since some locations are prone to risk associated with importation as compared to others.

vi. Supplier structure; the supplier can be part of a large group of companies.

It is good to do due diligence on the sister company to ensure they are not at jeopardy with the reputation of the supplier or company.

vii. Compliance; the supplier who has all the prerequisite requirements by law is deemed the best to import from.

This is as compared to the one who has no legal requirements to supplier toilet papers.

viii. Cost; while negotiating for the cost of the toilet papers will determine the kind of supplier you are dealing with.

Most Chinese toilet paper suppliers will offer competitive prices for wholesale purchases.

Using a Sourcing Agent to Find Toilet Paper for Importing from China

China provides an option for the customer to choose a sourcing agent of their choice while importing toilet papers to get a reasonable price.

Benefits of Using China Sourcing Agents

The benefits associated with a sourcing agent comes in handy as they have the following benefits;

i. Negotiation; the sourcing agents ensures that there is good negotiation in case of language barriers and ensure that both parties benefits from the deal.

ii. On site Verification; the sourcing agent can visit the factories to inspect and verify the quality of toilet papers before being imported.

iii. Relationship; the sourcing agent helps build the long term relationship with the client in that the client will be using them for importing toilet papers from time to time.

iv. Assesses supplier; the sourcing agent using his or her experience may be valuable in evaluating your supplier.

If the supplier is not trustworthy they will advise accordingly.

v. Price; the sourcing agent will help in getting you the best price of Toilet papers in the market.

vi. Saves time; they help in directing you to the right company of toilet papers since they are located within China and they know the companies very well.

How to Find Reliable China Sourcing Agents

There is no specific way of finding a reliable sourcing agent from China, However, the following features will help you determine one:

i. Professional work experience; the years the sourcing agent has been in business will help you a great deal in vetting them out.

Those who have huge experience are literally the best as compared to those who just joined the industry.

ii. Financial stability; the sourcing agent who request a big percentage of more than 70% being down payment

This means they have financial problems as compared to those whorequest for a 30% down payment.

iii. Market; the sourcing agent who is well vast with the market of Toilet papers and give you the information at tips of the finger.

This source agent is better than the one who will go do research and get back to you.

This is helpful in making timely decisions.

iv. Legal framework; a good sourcing agent is familiar with the legal requirements of importing toilet papers.

Unlike one who is not aware of any of the legal requirements is a big reason to worry.

v. Referrals; best sourcing agents have quite a number of referrals, bad sourcing agents may experience no referrals.

Quality; best sourcing agent they do not compromise on

How China Sourcing Agents Work

Sourcing agents from China work differently depending on the scope of work.

However, the major part of their work involves:

i. Sourcing for products, they source out for the products being requested by the client and give the expected prices.

ii. They signify the interests of the buyer of the toilet papers

iii. They deal with issues of the customs duty during the importation of toilet papers.

Cost of China Sourcing Agents

There is no standard cost of a sourcing agent from China.

The cost varies depending on the service to be delivered

However, they charge a small fee for the services being rendered

There are those who charge a monthly fixed fee less than $50 for the product

There are those who charge nothing at all but they rely on the price fluctuation for them to get the difference

While majority of them charge a percentage of between 5-10% on the toilet papers being imported.

Requirements for Importing Toilet Paper from China

The following are the requirement documents needed while importing toilet papers from China.

i. Clearing Agent; you are required to choose a clearing agent for the importation of Toilet papers.

ii. Legal requirements; you need to be approved by the government to do importation.

If the government does not approve the company, then it will not be involved in importation.

iii. Certificate of Origin; this is a document that shows the country of origin of the Toilet paper.

iv. Commercial invoice; this provides enough information for the custom and border protection officer to determine if the commodities being imported are admissible.

v. Packing list; this list is provided by the freight forwarder and it contains information from the invoice and is checked to verify cargo.

vi. Bill of landing; is a commercial document issued by a carrier to the shipper of good, signed by the owner of the vessel.

vii. Freight invoice for sea cargo

viii. A Certificate of Conformity

ix. Purchase Orders/Contracts

x. Permit/License for restricted goods

xi. Arrival notice, is a communication that is prepared by a carrier to let the recipient know that the shipment has arrived.

Quality and Safety Requirements

Quality and safety of the toilet is determined by:

i. Softness; Toilet papers should be soft, If the toilet papers are rough then it means they are not of the right quality.

ii. Size; the size of the toilet papers determines its quality as per the usage of the toilet papers.

iii. Chlorine-free; a good quality toilet paper is free from chlorine which makes them white.

iv. Recycled; a good quality toilet paper is decomposable and environmental friendly.

v. Threads; good quality toilets have no threads that irritate on the skin.

vi. Easy of tearing; the quality of the toilet papers is determined by the easiness of tearing it apart, those that are hard to tear part are deemed of poor quality.

Packaging and Labeling Requirements

The toilet papers from China are labeled and packaged based on:

i. Government regulation; the government regulates how the toilet papers are to be packaged and labeled.

ii. Company design; the company may devise ways to package and label its toilet papers depending on the company marketing strategy to attract more customers. Such as Velvet, kitten soft

iii. The preference of the customer; the customer may instruct the company to customize the label.

Should also instructionthe package the toilet papers with their name of choice especially during birthdays.

iv. Some are perfumed; this is a way of marketing their products

v. Different colors; they label and package toilet papers in different colors to appeal to more customer.

Minimum Order Quantity (MOQ) Requirements for Toilet Paper from China

The minimum order quantity varies from one China toilet paper supplier to another.

The best part, China toilet paper suppliers offer flexible MOQs

Cost of Importing Toilet Paper from China

The cost of importing Toilet papers from China varies greatly on the quality and number of items being imported and the final destination.

However, the price of toilet papers from China ranges from the US $ 0.1-0.22 per 500 rolls.

While the cost of shipping toilet papers also varies with respect to the number and type of the toilet papers being shipped.

The cost of shipment ranges from US $ 0.09 – 0.15 though much depends on the destination of the toilet papers.

Additionally, the import duty and taxes of toilet papers from China vary with the destination country.

The best import and taxes range from 5-13%.

The port charges are paid to the port for using the port and they vary to a certain percentage.

Factors Affecting the Cost of Importing Toilet Paper from China

The following Factors Influence the Cost of Importing Toilet Papers from China

i. Custom duty, the custom duty of a county may influence the cost of importing toilet papers, higher custom duty means high cost of importing.

ii. Destination of the final country, the final destination of the country will determine the cost of importing, the longer the distance the higher the importation cost.

iii. Mode of transport, importing through air may cost much more as compared through sea.

iv. Quality of the toilet papers, good quality toilets papers attracts high importation cost.

Negotiating Toilet Paper Prices with Chinese Suppliers

Sure, you can negotiate the prices of toilet papers with Chines suppliers.

This can be done through online or sourcing agents. However, low price will mean low quality.

Price is a determining factor on the quality of the toilet papers therefore it should be looked at critically before negotiating for the same.

How to ControlToilet Paper Quality from China

Toilet paper quality from China is of the essence.

The following are ways on how you can Control the Toilet Paper Quality.

i. Material, the material that are used to make toilet papers must be of the right quality in order to produce quality Toilet papers.

ii. Size, the size of the toilet papers as per the design must be of the right size.

iii. Technology, Manufacturing companies has invested in technology that helps them manage control of the quality of the toilet papers during production.

iv. Scanner beam, scanner beams are employed to check for the right measurements and report if a diversion from the measurement is encountered.

Shipping Toilet Paper from China

Toilet Papers can be Shipped from China Through a Range of Options such as:

i. Regular post from China, Regular Post enables you ship for toilet papers from China. You only pay for the charges and indicate the destination country and address.

ii. Courier Services, you can employ the service of the courier company to do the shipment of toilet papers for you.

iii. Air freight, you can ship it by air freight, this is done through air travel and will be picked at the county of destination airport.

And this can be done through air cargo.

This can be used especially when the toilet papers are needed urgently.

iv. Rail freight, this can be through railway that passes though close to towns that the luggage is destined to and this involves bulk shipments at affordable price.

v. Sea freight, this is through sea and it may take a sometimes to reach the destination country.

Loading Ports When Importing Toilet Paper from China

There are several seaports and airports in China that importers can use to ship Toilet papers from China.

China has established more than 34 main sea ports with above 2000 minor ports that are surrounded by the major and minor rivers of China.

This ports have enabled free movement of goods in and outside China.

The following are among the main seaports and airports inChina that importer can use to Ship Toilet papers from China.

i. Dalian

ii. Yingkou

iii. Jinzhou

iv. Quinhuangdao

v. Tianjin

vi. Yantai

vii. Weihai

viii. Qingdao

ix. Rizhao

x. Lianyungang

xi. Nantong

xii. Zhenjiang

xiii. Jiangyin

xiv. Nanjing

xv. Shanghai

xvi. Ningbo

However, the cost of port fee varies depending on the number of Toilet papers being imported and the destination country.

The following are the main airports in China that importer can use to Ship Toilet papers from China.

i. Beijing Capital International Airport

ii. Guangzhou Baiyun International Airport

iii. Shanghai Pudong International Airport

iv. Shenzhen Bao’an International Airport

v. Hangzhou International Airport

vi. Beijing Daxing International Airport

vii. Chengdu Shuangliu International Airport

viii. Hong Kong International Airport

ix. Shanghai Hongqiao International Airport

x. Zhengzhou Xinzheng International Airport

xi. Nanjing Lukou International Airport

xii. Wenzhou Longwan International Airport

xiii. Haikou Meilan International Airport

xiv. Xiamen Gaoqi International Airport

xv. Liuzhou Bailian Airport (LZH)

Briefly talk about the train route from China to serving destinations.

China has developed an alternative route to sea and air, being train transport to transport bulk imports to the destination countries.

High speed electric trains have been established to help in the navigation of imports in the long distance countries.

All the railway operations are handled by China State Railway Group Company, Limited.

There are various categories of railway transport in China ranging from National railway, local and designated railways.

These railway routes are as follows:

i. Beijing–Harbin Railway

ii. East Coast Corridor

iii. Beijing–Shanghai Railway

iv. Beijing–Kowloon Railway

v. Beijing–Guangzhou Railway

vi. Datong–Zhanjiang Corridor

vii. Baotou–Liuzhou Corridor

viii. Lanzhou–Kunming Corridor

ix. Beijing–Tibet Northern Coal Transport Corridor

x. Southern Coal Transport Corridor

xi. Trans-Eurasia Corridor

xii. Nanjing–Xi’an Railway

xiii. Yangtze River Corridor

xiv. Shanghai–Kunming Railway

xv. Southwest Coastal Access Corridor

Procedure for Importing Toilet Paper from China

Importing Toilet papers from China undergoes a process due restriction by different countries.

The following are guideline that may help you in importing Toilet papers fromChina.

1. Check out the legal requirements for importing Toilet papers from china, start by looking at the legality around importing Toilet papers to your country.
2. Check out for License legal brokers, this brokers can help you import toilet papers from China, you only need to contact them, however their services are not free.
3. Sourcing agents, you can seek the services of the sourcing agent who will do all the process on your behalf.
4. Choose on which method you want to use to import toilet papers.
5. Give the exporter details of the toilet papers you want to import from china.
6. The exporter will identify the toilet papers you want that meets your expectation and do necessary formalities and package your toilet papers.
7. Exporter will package of toilet papers and send your toilet papers to your destination.
8. You can use toilet papers shipping service online;

There are several toilet papers shipping services online that you can hire to make the importation of toilet papers from china easy.

9. Decide mode of shipment, if it is by air or ground, since shipping of bicycle can be done if only you are also flying from china and you want to fly with your toilet papers.

However, shipping by ground is more common, much easier and less expensive.

10. Get a shipping box for your toilet papers, this requires you to package the toilet papers before it can be shipped to your destination.
11. Pay the importation cost, and tax for the shipment, since you cannot bring the toilet papers to your country without incurring the cost of importation.
12. You can pick your box of toilet papers from your picking point as you indicated.

How to Reduce the cost of Importing Toilet Paper from China

Saving on the cost of importing toilet papers from China is the ultimate goal of every importer.

The following are ways in which you can maneuver around and reduce the cost of importation.

i. Understand the tariffs, understand the tariffs of the country you want to import from and make a budget for the same.

A good budget ensures that you are within the limits of tariffs and this will help you from going extra mile to incur extra cost.

ii. Reduce Intermediaries, many intermediaries along the way increases the cost since each intermediary charges a fee;

It is a good to deal with the company direct to save on such importation cost.

iii. Understand the Toilet papers, this helps you in avoiding the penalties involved when you had not paid for a certain certification.

iv. Tax free, sometimes the government may issue a tax free on importing toilet papers, that is the best way to import and save on the cost.

v. Refunds of duty, some counties have provision for refund of duties paid, you can request for such to get your money back.

Best Time to Import Toilet Paper from China

There is no best time to import Toilet papers from China, though the following may be key on getting the best deal.

i. Free custom duty, during free custom duties, it is the best time you import since toilet papers will be free from tax.

ii. Discount, during discount offered by the manufacturing company, at such times you may save some money while importing Toilet papers.

iii. Free negotiation, owing to free negotiation by the brokerage, such time you may save on brokerage fee.

iv. Import early, importing toilet papers early enough makes you know the price before it shoots up.

v. Use coupons, importing from well-known companies, at times they give out coupons on any products you import from them.

such coupons when offered may determine as the best time to import.

How to Clear Toilet Paper from China?

Toilet papers can be cleared from China through contacting a clearing agent to help in the process of clearing.

The agent makes custom declaration entry in accordance with the applicable tax framework.

Some companies have in-house clearance services that you can contact them for assistance.

Original file of the importation of toilet papers is presented at the custom authority for verification.

At times toilet papers may be cleared at the point of entry by signing on the relevant clearance form for having been within the legal framework.

Upon verification the toilet papers are cleared for release.

Documents you Need to Import from China

The following are the major documents needed to import Toilet papers from China

i. Certificate of Origin, this is a document that shows the country of origin of the Toilet paper.

ii. Commercial invoice, this provides enough information for the custom and border protection officer to determine if the commodities being imported are admissible.

iii. Packing list, this list is provided by the freight forwarder and it contains information from the invoice and is checked to verify cargo.

iv. Bill of landing, is a commercial document issued by a carrier to the shipper of goods, signed by the owner of the vessel.

v. Arrival notice, is a communication that is prepared by a carrier to let the recipient know that the shipment has arrived.

 Procedure for Customs Clearance

The following are procedures for custom clearance

i. Lodgment& Processing, the shipper contacts the licensed clearing agent to lodge declaration form for the imports.

Upon assessment sends it to supplier for pre-shipment inspections.

ii. Entry Declaration, Payment of Taxes and Processing, upon verification of the pre-inspection.

The agent makes declaration for customs and clears with the relevant authority by paying the applicable taxes and in return issue a bank slip.

iii. Verification, the clearance file is presented at the customs authority for verification.

iv. Clearance and Release, the toilet papers will be released upon verification and be cleared.

Working with a Customs Broker to Import and Clear Toilet Paper from China

Custom brokers are helpful when it comes to clearing of the imported toilet papers.

There are several custom brokers around that you can choose from.

They help in submitting all the necessary documentation needed for importation.

Importing Toilet Paper from China using a China Freight Forwarder

Tj chinafreight is one of the leading freight forward companies that helps in importation of toilet papers.

They have operationalized their operation 24/7 to tackle customer’s issues by offering affordable prices.

They possess vast experience in the freight industry making them the most reliable company to do your shipment.

They are well known globally, to deliver goods to your door step.

You should contact us now to choose your preferred toilet papers

Sit back and let the company do the rest of the documentation and clearance for you.

They are able to ship through air, sea, train, on whatever method you will choose they will deliver.

They are able to handle any of the shipment, however, special it might be.

Time it Takes to Import Toilet Paper from China

There is no specific time it takes to import toilet papers from China.

However, the mode of shipment will determine the time it will take to ship toilet papers.

Air shipment ensures that the toilet papers arrives on time, however, the charges is pegged on the weight of the shipment and may take up to 10days.

While sea shipment will also deliver as per the stipulated time frame of between 30-45days.

In case you want to import toilet papers from China faster, Tj chinafreight is here to make the entire process simple and straight forward.

Contact our offices for fast freight forwarding solution.

China is among the few countries that harbor reliable motorcycle manufacturers.

If you need a quality motorcycle, then shipping it from China ought to be your first choice.

If you need guidance on how to send your bike from China, then continue reading this piece.

Types Of Motorcycle You Can Ship From China

Here is a list of motorcycles you can ship from China.

Note that the list is not limited to:

Standard motorcycles– This type of motorcycles is quite common on the road.

One element that makes them preferred by most users is their easy-going ergonomics.

It gets better as you can ship this type of motorcycle from China.

Cafe racer and scrambler motorcycles– Keep in mind that cafe racer motorcycles tend to be more aggressive.

The bike has a forward-leaning sitting position.

At the same time, a scrambler motorcycle resembles a dirt bike.

However, both cafe racers and scrambler motorcycles are specialized standard bikes.

Sportbike- Most people often go for sportbikes as they have great speed and agility while on the road.

If you need such a bike, it is best to check from Guangzhou, Changzhou, and Chongqing.

Touring Motorcycles– Touring motorcycles are quite large.

This kind of motorcycle is ideal for long-distance trips. This is because a touring bike is quite comfortable to ride.

The motorcycle has features like; front fairings, which help break up the wind, forward set footpegs, and combined rear set handlebars.

China has reliable manufacturers that can efficiently deliver a quality touring motorcycle.

Sport Touring Motorcycle– A sports touring motorcycle is a type of bike with features of a sports bike and a touring bike.

Therefore the bike has a more aggressive engine, and it also has better tolerance over long-distance trips.

Cruiser Motorcycle- Cruiser motorcycle offers a laid-back riding position and a more relaxed feel while riding it.

The cruiser motorcycle has low seats, which requires the rider to lean back slightly while riding.

You can find a variety of cruiser motorcycles from China that you can ship.

Adventure Bikes– These types of bikes are best for roads that are rutted or rough.

In most cases, if you wish to have better control when riding, most riders stand up in the saddle.

This kind of motorcycle is ideal for this kind of feature.

This is because it has a high seat height and a high handlebar position.

You can ship adventure bikes from Chinese motorcycle manufacturers.

Enduro motorcycle– This is a type of motorcycle is best for cross country competitions. This is because the bike is deemed as an off-road racing bike.

Popular Motorcycle Shipping Destination From China

Note that most of these popular shipping destinations are where some of the motorcycle manufacturers are situated.

The destinations include:

1. Guangzhou
2. Hangzhou
3. Shantou
4. Wuhan
5. Jinan
6. Shanghai
7. Xi’an
8. Zhengzhou
9. Qingdao
10. Chengdu
11. Dongguan
12. Shenyang
13. Hong Kong
14. Chongqing
15. Shenzhen
16. Hangzhou

Procedure For Moving Your Motorcycle From China

First and foremost, before moving your motorcycle from China, it is imperative for you to get acquainted with the laws.

Note that you need to be eligible to import your bike from China. Diplomats, legal residents, and people with ‘Z’ visas are allowed to ship from China.

Understanding the laws will help ensure that you do not encounter any hassle while moving the motorcycle from China.

It is imperative to ensure that the bike is secure.

You can choose to make use of a transport service to reduce the hassle of moving your motorcycle.

The good thing about using a transport service is that they will help lessen the risk involved while moving your motorcycle from China.

In most cases, wood crates are used while moving a motorcycle from China.

These wood crates help to strap down the motorcycle.

If you intend to move a couple of motorcycles from China, it is best to stack them in one container.

This approach is quite affordable.

If you need your motorcycle shipped by air, ensure that you make use of crates.

Sea Freight Motorcycle Shipping From China

Sea freight is a type of transporting method used when hauling large cargo using carrier ships.

How it works is that the shipping service picks up the motorcycle from the manufacturer.

The bike is then moved to the port. During this process, the motorcycle passes through customs.

The motorcycle is later loaded into a container.

The container could be an FCL where the client has their container or an LCL where they share the container with other users.

Once it is packaged, the container is later on put onto the cargo ship for shipment.

Advantages Of Sea Freight Shipping

1. It is economical- Shipping rates are relatively inexpensive. Hands down, sea freight shipping, is less affordable compared to air.
2. It is environmentally friendly- Shipping goods by sea is better for the environment than air. In most cases, cargo airliners tend to let out a lot of carbon dioxide into the atmosphere. Too much of this type of pollution can cause global warming.

It is best to consider using sea freight shipping as it is eco-friendly.

Note that most states offer a tax write-off for businesses that deliver eco-friendly services.

3. It is convenient- In some cases, a client may need to ship one motorcycle from China. As a result, you may not need a lot of space to transport your bike.

If you use sea freight shipping, you have the option of sharing your container with another client.

4. Sea freight shipping is an ideal method if you need to ship heavy products- Let’s say that you need to ship a couple of motorcycle from China, using sea freight shipping is the best method to use.
5. It is safer- If you are transporting hazardous materials, it is best to make use of sea freight shipping. This is because maritime employees are trained on how to handle hazardous products.

Sea Freight Motorcycle Shipping Options

Some of the main options you should consider include:

Roll on/Roll Off

This kind of shipping is used to ship wheeled vehicles such as a motorcycle.

Most individuals prefer this method as it is relatively cost-effective.

This shipping option makes use of rollers; there is also the use of forklift trucks.

The machinery comes in handy when loading and unloading the motorcycle.

The downside of using this method is that you cannot stack the motorcycle over each other.

This makes it less convenient since the vessel cannot accommodate many products.

Also, this method is not secure.

While using this method, it is imperative to understand that you cannot include your personal belongings while shipping.

Container Shipping

The beauty of using this method is because you can use it anywhere you want.

One disadvantage of using roll-on/roll-off is that it is limited to global routes.

Container shipping is secure.

If you have any spare tires or any other personal belonging, you can quickly ship them along with your motorcycle while using container shipping.

The downside of using this method is that it is relatively expensive compared to using RORO shipping.

But, the charge depends on the type of container you choose.

Disadvantages Of Sea Freight Motorcycle Shipping From China

1. One significant disadvantage of using sea freight is that it takes a lot of time to ship your motorcycle from China. In most cases, sea freight tends to take long because it ships items in bulk.
2. There are various risks involved while using sea freight motorcycle. You may encounter delays while using sea freight shipping. Also, there may be weather obstructions, which may result in losing your shipment.
3. Shipments are more prone to get damaged while in transit.
4. Keep in mind that there are few states that do not have ports; therefore, they cannot receive ships carrying large containers.

Motorcycle Loading Ports From China

• Port of Guangzhou – This is one of the busiest ports in China. It trades with over eighty nations and 300 ports.
• Port of Shanghai- The port is the largest port in China and the world. One factor that has contributed to its popularity is its closeness to different manufacturers in China.
• Port of Shenzhen
• Port of Ningbo-Zhoushan
• Port of Hong Kong
• Port of Yingkou

Airfreight Shipping From China

Airfreight shipping involves the transport of shipment via air.

Advantages Of Airfreight Shipping

1. Air freight is a fast mode of transport- There is no doubt that air freight is the quickest shipping method. If you wish to receive your motorcycle in a short time, using air freight shipping is the way to go.
2. Air freight is a reliable mode to use- Air freight shipment is considered a reliable form of shipping. This is because airlines tend to have strict schedules that need to be met.
3. You can ship your motorcycle almost anywhere you want- In most cases, sea, rail, and road may be inaccessible in remote towns. This, however, does not apply to using air freight shipping. This is because most airlines have several networks of destinations all over the world.
4. Air freight shipment are secure- In most cases, using sea freight is quite insecure. It will be of benefit to make use of air freight as it is safe to use.
5. Less need for a warehouse and fewer products in stock- Air freight is relatively quick. Hence there is less need to look for a local warehouse. This, as a result, will not require you to have more products in stock.

Also, while using air freight, the customs clearance is quicker since most of the cargo is cleared quickly.

6. It is easy to track your cargo- The benefit of using air freight is that few companies allow you to track your shipment while in transit.
7. Lesser packaging- Air freight does not require a lot of packing. You will end up saving money and time that you may have used in packaging.

Disadvantages Of Air Freight Shipping

1. It is costly- Air freight shipping is an expensive mode of shipping.
2. Air freight shipping is dependent on weather – There are few situations where the flights wind up getting canceled due to weather. This could have adverse effects, mainly if you needed the cargo at a specified time.
3. There is the size and weight limitation while using air freight shipping- Planes are as not big as ships. So there is a restriction to how much weight a plane can carry.

Airports For Motorcycle Shipping From China

1. Beijing International Airport- Beijing is well connected with major cities. The airport is relatively modern. Using this airport is an ideal choice when shipping your motorcycle from China.
2. Guangzhou International Airport – Guangzhou being the largest city in China, makes it an ideal choice of air freight shipping from China.
3. Shanghai Pudong International Airport- Shanghai Pudong International Airport is the primary airport in China. The benefit is that you can go away here from Shanghai.
4. ShenzenBaonan International Airport- The airport is the 5th largest airport in China.
5. Shanghai Hongqiao International Airport- It is among the oldest airports in China.
6. Xi’an Xianyang International Airport

Documents You Need To Ship Your Motorcycle From China

Some of the documents you will need include the following:

Bill of lading– It is imperative that you have this document as it has information about the goods being shipped.

The paper also contains a contract between the exporter, carrier, and carriage.

Therefore it ought to have the name of the ship, the destination and origin, the title of the consignee, and the name of the consignor.

Import License– An import license showcases the government’s authorization order to allow a particular product in its territory.

Packaging List– This is a document detailing out what is in the shipment.

Certificate of origin– This is a document that outlines which country the motorcycle was manufactured.

The certificate contains information about the product, the stipulated destination, and the country of export.

Commercial Invoice– This document details the agreement between the seller and the buyer.

The document details the price value and quantity of the goods.

Packing Your Motorcycle For Shipping From China

While packing the motorcycle for shipping from China.

In most cases, a purpose-built wooden shipping case is used to ship the bike.

The good thing about using this strategy is that it does not leave room for wear and tear.

Hence you are confident that your motorcycle will get to you in perfect condition.

The other benefit of using a purpose-built wooden shipping case is because it offers extra space.

You can use the extra space to store personal items such as helmets or leathers.

Crating Motorcycles From China

Note that all crates used to ship the motorcycle are carefully crafted to fit the motorbike perfectly.

While crating, you need to start with positioning the bike on a heavy-duty base.

This step ought to be done prior to when you secure the stand and the wheels with chocks.

While strap banding, it is essential to ensure that the straps protect the area in contact with the foam padding.

With this always strap band through the wheels as it will also help protect the paintwork when tension is introduced.

When the crate’s sides are in perfect position and the crate base is well secured, the shipping company uses timber lengths to hold the bike to the crate.

This also helps ensure that the paintwork of the motorcycle remains protected.

Before the crate is externally strapped, the top crate is safely secured and then uniquely numbered for shipping.

Motorcycle Shipping Cost From China

The average cost of shipping your motorcycle from China is $1000 to $2000.

Please note that the total amount is influenced by various factors such as destination or transport mode.

Shipping Motorcycle From China Taxes, Duties And Laws

You need to have a good understanding of taxes and duties while shipping your motorcycle from China.

Note that each state tends to have different rates when it comes to taxes and duties.

What happens is that the customs official assesses the value of the motorbike in order to determine the duties and taxes.

While importing your motorcycle from China, the state will subject you to pay import duty tax.

Import duty tax is a tax collected on imports by the state’s customs authority.

Ensure that you have a customs bond while shipping your motorcycle from China.

A customs bond is a contract that acts as a surety of payments of import duties and taxes.

Like all other countries, China has laws that need to be followed while shipping your motorcycle from China.

One crucial law that you ought not to overlook is to ensure that you have paid all taxes and duties for your cargo to be cleared.

Also, you need to have all the required documents for your cargo to be released.

Factors Influencing The Cost Of Shipping Motorcycle From China

1. Location of origin and destination of the cargo– If the distance between the origin and the destination of the cargo is far.

The charges might be higher in comparison to when the point of origin and the destination is close.

What makes the charges accelerate is due to factors like the loading and unloading of the cargo, fueling of the ship, and the length of the voyage operation time.

2. The season– There are particular holidays, such as the Christmas holidays, where the prices are usually high.

In China, celebrations, such as the new year Eve and the China Spring Festival, tend to have higher shipping rates.

During these seasons, shipping companies tend to increase the rates in order to stand in for the losses incurred during the off-seasons.

3. The size and type of vessel used– Note that most ships tend to have different suitability and airworthiness in them.

These factors influence the rate of using the vessel. Also, ships tend to have dissimilar security and technical conditions.

Hence the type of vessel you use to ship your motorcycle from China will also influence your shipping cost.

4. Exchange Rates– In most cases, most shipping companies tend to put into consideration the exchange rate or currency for them not to incur any economic losses while setting the rates.

Today, the common currency used worldwide is the US dollar.

Hence the shipping cost may be levied according to the dominant currency.

5. Government intervention and protection– Nowadays, while shipping internationally, you will automatically notice that most states have strict intervention and protection.

Case in example, while shipping your motorcycle from China to North America.

You will realize that the government has intervened and protections.

This kind of intervention and protection tends to increase the shipping rates.

6. Trade policies between different countries– Note that other countries tend to have dissimilar trade policies.

A trade policy is defined as a policy that affects the flow of goods between different countries.

There are particular countries with high trade policies while trading with China, whereas there are those with favorable policies.

This kind of trade policy ultimately affects the total cost of shipping.

7. Oil prices– Oil prices tend to fluctuate continually.

Therefore, the oil prices greatly influence the total amount you will pay while shipping your motorcycle from China.

Motorcycle Freight Insurance When Shipping From China

It is imperative to have motorcycle freight insurance while shipping it from China.

The insurance policy will come in handy in case the motorcycle gets damaged or lost.

Note that your typical motorcycle insurance policy will not be liable while your bike is being moved.

Hence it will be of help to purchase a comprehensive policy that will cater for any damages while the bike is being moved.

To help ensure that your motorcycle has full coverage, it will be of help to make use of your shipper’s liability.

Keep in mind that the shipper’s liability will not cover damages caused by unforeseen elements like a flash flood.

Also, the liability policy will not cover any damages that your actions might have caused.

How Long It Takes To Ship Your Motorcycle From China

The time it takes to ship a motorcycle from China is influenced by various factors.

One main aspect that influences the period it will take for you to ship the motorcycle is the distance.

If you end up shipping your motorcycle from state to state it will take approximately fourteen days.

However, if you intend to ship your motorcycle internationally, it may take four weeks.

Also, the other factor that influences how long it takes to ship your bike from China is the mode of transport.

If you choose to ship your motorcycle via air, it might take a shorter time compared to using the sea.

Motorcycle Shipping With China Freight Forwarder

A freight forwarder is a group that helps with the arrangement of your import and export.

One famous freight forwarder company that most people use while shipping from China is Tj chinafreight.

What Tj chinafreight does for its clients is to act as an intermediary between carriers and shippers.

Therefore while using Tj chinafreight, you are confident that you will not experience any frustrations while shipping your motorcycle from China.

Here is how Tj chinafreight will benefit you:

1. Manageability- In most cases, you may end up not experiencing the right amount of transparency while using a third-party logistics company.

Most logistic companies may not offer you that personal touch, particularly if you are shipping your motorcycle internationally.

If your motorcycle gets lost, it might take an eternity for you to get your answers.

Therefore, to avoid having any back-and-forth with anyone, it is best to use Tj chinafreight.

Tj chinafreight will help manage your cargo. They will also help you easily trace your motorcycle in case it gets lost.

2. Versatility- If you have a tight deadline that needs to be met while shipping your motorcycle it is best to make use of Tj chinafreight.

There are periods when unforeseen circumstances might crop up when shipping your motorcycle from China.

To avoid going through the hassle of dealing with the circumstances, it is best that you use Tj chinafreight.

Some of the unforeseen circumstances that Tj chinafreight can help you with are like re-routing of your vessel.

It might be hard for an individual to react well when they are informed their vessel has diverted due to poor weather.

However, while using a freight forwarder, they will ensure that they handle the issue adequately to ensure that your shipment is safe.

3. Saves on cost- By using Tj chinafreight, you are sure that you will save up on cost. This is because Tj chinafreight can easily come up with a deal with the carriers.
4. Freedom from contracts- By using Tj chinafreight as your freight forwarder, you are certain that you can count on them not to be tied to any contracts. Simply you have the freedom to change firms.
5. Simplicity- There are so many processes involved while shipping goods. Tj chinafreight can offer some simplicity to these processes.

The good thing about using a freight forwarder is that the firm allows you to have control still.

The benefit is that you will not go through tiresome processes of vetting carriers or assessing prices.

By using Tj chinafreight you allow yourself to have some peace of mind while waiting for your shipment.

How To Save Money When Shipping A Motorcycle From China

You can do a few things to help you save money when shipping your motorcycle from China.

Here are some of them:

1. Make use of a reliable freight forwarder- By using a freight forwarder, you are certain that your shipping cost is lower. Making use of a reliable freight forwarder could help you get a couple of shipping discounts.
2. Pick an ideal shipping mode- Air and sea are among the most popular mode of shipping.

Both air and sea have their own advantage and disadvantages.

Hence it is imperative to understand them both, as choosing the right mode will help you save money.

3. Use courier and air freight only when necessary- If your motorcycle is urgently needed, then using air freight seems as the logical option to use. However, if your goods are not time-sensitive, it is best to make use of sea freight.

Moreover, using a courier service helps ensure that your goods are delivered faster.

However, by using a courier service, you will end up incurring an extra cost.

If you necessarily do not need your motorcycle delivered quickly, it is best to use the normal logistics.

4. Measure and weigh your motorcycle- having accurate information about your packaging will make it easier to find the right shipping company.

By having actual measurements of your shipment, you can easily take advantage of online calculators.

The online calculators may help you have an estimate of what you will incur from shipping your motorcycle from China.

5. Compare shipping cost- As obvious as it may sound, it will be of help to compare different shipping companies.

This is because more shipping companies tend to have dissimilar shipping costs.

6. Buying larger quantities to help lower shipping cost- If you wish to save on cost, ideally, you buy goods in large quantities.

At a glance, it may appear challenging shipping a motorcycle from China.

But in reality, it is relatively easy to ship a bike.

It would be best if you were wary with the suppliers you use to ensure that you obtain a quality motorcycle from a Chinese Manufacturer.

So what are you waiting for?

Why not ship your bike from China and enjoy the many benefits of shipping from China.

Contact us now for any assistance when shipping motorcycles from China.

If you want to compare starboard vs portside, then this guide has all information you’re looking for.

From basic definition, uses, to origin of the terms – you’re going to learn everything about starboard vs portside here.

Keep reading to learn.

What is Starboard?

This refers to a nautical term for navigation that unambiguously references the right side of a vessel.

This is normally achieved by an observer aboard a vessel.
The observer uses this navigational term while facing the front of the bow.

What does Portside mean?

This is a nautical term that unambiguously references the left side of a vessel.

This is done while observing the bow.
Similarly given when facing the front of a vessels’ bow.

What is the difference between Starboard and Portside?

Starboard is the right side of a vessel.

Portside is the left side of a vessel.

Starboard is denoted mostly by the color green.

Portside is denoted by the color red.

What is the Origin of the Term ‘Starboard’?

The etymology of starboard comes from steorbord.

Steorbord means the direction which the ship is steered.

Steor means steer.

Bord refers to side of a boat.

What is the Origin of ‘Portside’?

Initially it was called backboard.

It later transitioned to ladder board meaning to load.

Do Cargo Ships always Dock at Portside?

The position to dock can be on either portside or starboard.

The captain of the ship has the discretion to choose where to dock.

Some other factors that may determine which side you dock on are:

• The government regulations for a particular country or region.
• Layout of the port area.
• The direction that the boat is sailing in.

When should you Use Portside?

A port is a term in navigation that you will use in seafaring.

When one is facing the bow or front side of the ship, the port side is the on the left side.

You should use the term portside while navigating the sea and indicating to turn to the left direction.

During the past, ships would approach the port when the left side is facing the dock.

The reason for this was because the rudder was always on the right side of the ship.

When should you use Starboard?

Starboard, just like portside, is also a terminology that you will use in seafaring.

You should use the term starboard to indicate the right hand side.

It is the opposite of the portside.

It is a navigational term which reduces ambiguity while in the sea.

During the past, the navigation of small ships was done by a hand-operated rudder mechanism.

The handle was on the right side of the ship as a majority of the sailors were right-handed.

Why do Ships use ‘Starboard’ and ‘Portside’ and not ‘Left’ and ‘Right’?

This is because starboard and portside are unambiguous regardless of a mariners’ position.

You will thereby minimize the chances of confusion when communicating on which turn to take.

Ships in the past were having rudders on the center line and a steering oar controlled it.

Just like in the modern society, most sailors were right handed.

Therefore, since most sailors were using their right hand, steering oars were on the stern’s right side.

This lead to a majority of sailors were referring to the right side by the term steering side.

The name later changed to starboard.

Also, starboard combines two words: stéor and bord.

Stéor means steer while bord refers to the side of a ship or boat.

The left side of the ship got the name port.

This is since ships with starboards usually dock on ports on the opposing side of the star.

Port side and star board came about so that no interference came about during operations.

The other reason is that starboard and portside sound different.

Challenging conditions of the sea would make it hard for sailors to hear one another.

This is especially true since the left side was originally larboard.

Old English terminology for port side was sounding like backboard.

Sailors had their backs facing the left side of the ship while steering big ships.

Later on, backboard changed to ladder board.

Ladderbord is the loading side of these ships.

After that, ladder board was changed to larboard which happens to be quite confusing.

These terminologies makes sailors eliminate doubt when you compare it to right or left.

Is Portside the Default Loading Side for Cargo?

Yes, it is.

This is because the portside faced the port.

Hence making it easier for loading and offloading of cargo.

How do you Identify the Starboard and Portside of a Shipping Vessel?

You will notice the difference between starboard and portside as marked by the colors.

The portside is denoted by the color red.

The starboard side is marked by the color green.

Why is the Front of a Ship called Bow?

The origin of the word bow is similar to that of the bough of a tree.

Bough originates from a low German word that means shoulder.

The origin can be attributed to two theories.

First, the extreme front of the ship is known as head.

It is also the widest part of the ship behind the head meaning it would be followed by the shoulders or bough.

Secondly, wooden frames were used to construct wooden ships.

Also, the wooden frames had a prominent curve near the bow.

The ship builders were selecting timber pieces that would fit on the frames.

These pieces of timber came not from the tree trunk, but from the bough of the tree.

What Color are Port and Starboard Lights?

The colors for port side is marked by the color red.

You will find starboard lights are indicated with the color green.

What is the Back of a Ship Called?

The back of a ship or boat is called the stern.

However, when the ship is in backward motion it is referred to as moving astern.

If a person is moving towards the back of a ship, the person is going aft.

What Color are a Ship’s Stern and Bow Lights?

You will find a ship’s stern is color white and placed at an angle of 135 degrees.

You will note that the bow lights are bi-colored.

The portside lights are red.

The starboard lights shine green.

What is the Importance of Navigation Lights on Cargo Ships?

Other than being a requirement as stipulated in the COLREGs, there are other benefits to this.

The major purpose is to act as a guide to the direction of the ship.

Navigational lights also give the position of the ship.

Navigational lights act as indicators when overtaking, crossing or head on scenarios.

Also, the ships had white lights that were on the masthead and stern.

When you combine the red, green, and white light, it was easy to identify a ship during the night.

An example is when two sea vessels were approaching each other bow to bow.

The sailors would navigate the vessels to the starboard direction.

This means they would pass one another on the port side.

What is COLREGS?

COLREGs stand for International regulations for Preventing Collisions at Sea.

It came into effect on 15^th July 1977 after adoption on 20t October 1972.

You will find them listed in the International Maritime Organization.

It is also referenced as “rules of the road”.

COLREGs are derived from the Convention on the international Regulations for Preventing Collision at Sea.

COLREGs govern the navigation of vessels at sea for ships and vessels to prevent collisions.

COLREGs is made of Six (6) sections.
It has 41 rules.

These six sections are as follows:

• Section 1 – General;

1. Rule 1: Applicable to all vessels on seas and all water bodies that connects to high seas.

Special rules made by maritime authority will be adhered to and take precedence.

2. Rule 2: It ensures the masters, owners and the crew follow the rules.

Should the owners and or masters fail to follow protocol they will be held accountable.

3. Rule 3: This part incorporates definitions.

• Section 2 – Steering and Sailing;

1. Rule 4: It applies to all conditions regarding visibility.
2. Rule 5: Necessitates all vessels to be vigilant in terms of sight, sound, or other means applicable.

No vessel and or captain should make decision based on scanty information.

3. Rule 6: It highlights safe speed of the vessels.

States that all vessels should take reasonable measures to avoid collision.

All vessels should check on the prevalent circumstances to avoid collisions.

4. Rule 7: It will cover the risk of collision and no assumptions are valid when information is scanty.
5. Rule 8: involves steps to take to avoid collisions.
6. Rule 9: Vessels using narrow courses should be close to the outer side of the channel on the starboard side, etc.

Fishing vessels should not hinder the passage of other vessels in a narrow channel or fairway.

A vessel which of less than 20 meters in length should not hinder passage of another vessel.

7. Rule 10: ships crossing traffic lanes be at right angles to the direction of the flow of traffic.
8. Rule 11: This section will apply to vessels that are visible to one another.
9. Rule 12: Highlights actions that two vessels approaching one another should take.
10. Rule 13: It highlights overtaking requirements.

It stipulates that the overtaking vessel should keep way from the vessel being overtaken.

11. Rule 14: highlights situations when vessels are head on.

All power driven vessels while headed for a collision should switch to starboard course.

12. Rule 15: covers actions that the vessel which gives way should take.
13. Rule 16: Contains rules which the vessel that gives way should apply.
14. Rule 17: Highlights actions that stand-on vessels should take.
15. Rule 18: Highlights responsibilities between various vessels.
16. Rule 19: Ships should move at the right speed as per the current circumstances and visibility.

Each ship shall take into consideration the prevalent circumstances of restricted visibility.

• Section 3– Lights and Shapes;

1. Rule 20: mentions that rules pertaining to lights apply from sunrise to sunset.

This is applicable in all weather conditions.

2. Rule 22: Gives definitions.
3. Rule 23: Looks at lights that power-driven underway vessels should carry.
4. Rule 24: Looks at lights which vessels that tow and push uses.
5. Rule 25: Looks at the light necessities for sailing underway vessels and vessels using oars.
6. Rule 26: This covers the light that fishing vessels use.
7. Rule 27: This will cover vessels that have their movement restricted or with no command.
8. Rule 28: It looks at vessels that have are affected by draught.
9. Rule 29: This one covers light for pilot vessels.
10. Rule 30: This will look at vessels that have docked.
11. Rule 31: It looks at light for seaplanes.

• Section 4 – Sound and Light signals;

Use of high intensity revolving lights should be avoided.

1. Rule 32: Defines short and prolonged blasts, and whistles.
2. Rule 33: Ships ≥ 12 meters should have a whistle and bell while those ≥ 100 meters must have an extra gong.
3. Rule 34: It looks at maneuver and warning signals while using lights or whistles.
4. Rule 35: Looks at sound signals in restricted visibility areas.
5. Rule 36: Looks at signals that will attract attention.
6. Rule 37: It looks at distress signals.

• Section 5 – Exemptions; and

1. Rule 38: ships built before this regulation can be excluded from some sound and light signals.

• Section 6 – Verification of compliance with the provisions of the Convention

1. Rule 39: it highlights definitions.
2. Rule 40: contracting parties to apply code for implementation to execute their obligations in the current convention.

It also stipulates that every contractor shall be liable to audit.

3. Rule 41: Contracting parties to undergo regular audits.

COLREGs has four (4) annexes.

The annexures cover:

• International SOS codes.
• Specification of shapes and lighting used.
• Auditory signaling appliances
• Signage of fishing ships within close range.

What are the COLREG Rules for International Shipping?

The COLREG rules are divided into (6) sections:

• General

States that all vessels are in high seas are bound by the COLREG regulations.

Further states that the port side and starboard lights will only be on when underway.

Should a vessel be in motion it will have either one or two masthead lights dependent on its length.

A vessel should have day shapes and lights to indicate its nature and activity.

• Steering and sailing.

States that all ships should always move at a speed considered safe.

The determinant factors of safe speed are:
Visibility.

Traffic density.

Maneuverability

Wind speed and sea currents.

• Lights and shapes.
• Sound and light signals.
• Compliance verification.

What is the Relationship between Starboard vs. Portside and Stowage Planning?

Stowage planning refers to allocation of space on a ship for cargo containers.

The planning is done in regards to discharge in different ports.

It is very important to have the proper storage of containers to avoid maritime disasters.

Stowage planning is done in consideration of several factors among them being:

• Port of load.
• Transhipment ports.
• Port of discharge.
• Ship size.
• Number of containers.
• Weight, size and type of containers.
• Special care of items being shipped.

Calculation of storage is done by computerized software.

You will need to know the following when doing stowage planning:

• Scheduled ports to be visited and the order.
• Summarization of containers by weight, size and type.
• The number of hazardous containers to be loaded at each port.
• Number of containers already aboard.

What Kind of Goods is Best Loaded in Starboard?

Any goods can be loaded on starboard.

This is provided they adhere to load line restrictions.

The load lines put restrictions on the amount of load to be carried by a vessel.

However, it is advised that compatible load be loaded on the same side.

This is to avoid chemical reaction of items which are incompatible.

Caustic soda and acids should not be stored together because they will react.

The United States coast guard has released a cargo compatibility.

This checks if goods can be loaded together.

You should also check on the stability on each side of the vessel before loading.

This ensures the vessels does not break into two or sink while in the deep seas.

Various factor looked at when loading vessels are:

• Cleaning procedures.
• Vapor return.
• Toxicity
• Heating requirements.
• Boiling point.
• Freezing point.
• Pollution category.
• Inhibitor requirement.
• Maximum temperature.
• Multi-port voyage sequence.
• Limitation of load zone to port of destination.
• Stress conditions and sheer force at sea.
• Sequential distribution of multi-grade goods.
• Voyage draft restrictions
• Pre-wash requirements.
• Trim of discharge and draining.
• Valve segregation if applicable.
• Permissible expansion of goods aboard.
• Temperature of cargo load.
• Venting capacity.
• Electrostatic hazards.

Which side between Portside vs. Starboard is suitable for loading Hazardous Cargo?

Hazardous cargo can be loaded on either side.

This is provided they conform to the International Maritime Dangerous Goods code (IMDG).

The IMDG aims at preventing marine life and protection of the crew.

Hazardous cargo should conform to the density that is permissible.

The list of goods to be loaded need to meet an international Certificate of Fitness to transport hazardous goods.

It is also worthwhile noting that some items have temperature restrictions.

How do you Remember Port and Starboard?

Several ways to remember the port side and starboard are:

• Associate the terms with the alphabet.
• Buy a pair of socks indicated port side to be worn on the left foot and starboard on the right.
• Check the letters, starboard has two Rs alluding to the right and port is associated with left.
• Associate the number of letters with direction, port has four letters similar to left.
• Learn a joke on the two navigational terms (Portside and starboard).
• Know the etymology of the navigational terms.

How does Starboard vs. Portside help in safe navigation?

The terms reference the right and left sides without any confusion.

Any mariner will note the action to take when advised to turn to either side.

When two vessels are approaching a right of way is established using the navigational rules.

This takes into account if neither of the vessel is restricted in mobility.

When the starboard light is on, while approaching another vessel you can proceed moving forward.

If you observe portside light on approaching you need to give way.

What is Canting in relation to Starboard vs. Portside?

Canting refers to the effect of a vessel bow moving in a reverse direction.

This is the majorly caused when the ship is taken astern while approaching the jetty.

Does a Shipping Vessel’s Propeller Influence the Direction in which a Ship Navigates?

Yes, it does.

You will observe that for a propeller that is right handed, the stern swings to port.

The bow will move towards the starboard.

You will note that for a propeller that moves anti-clockwise, the stern moves to the starboard.

The bow moves to the port.
You will find propellers categorized into two (2):

• Fixed pitch.
• Controllable pitch.

Some of the notable propellers are:

• Controllable pitch propeller.
• Highly skewed propeller.
• Self-pitching propeller.

Propellers influence the following movements:

• Forward/Ahead movements.
• Slowing down.
• Stoppage

What is the Significance of Bow Thrusters in Ship Navigation?

Also commonly referred to us maneuvering thruster or stern thruster is a propulsion mechanism.

It is used to turn the vessel either starboard or portside without use of the ships propulsion mechanism.

You will note that it makes docking easier.

Bow thrusters are used to maneuver in the following scenarios:

• Maneuvering in coastal waters.
• Maneuvering in channels.
• Entry in ports when experiencing harsh weather conditions.
• Exiting ports in bad currents.

This is because docking can be achieved without moving the vessel forward.

Thrusters can either be mounted on either the stern or bow.

Bow thrusters have the following advantages:

• Saves on cost as it reduces the need to stay at the port and use tugboats.
• You will increase safety while berthing in adverse weather conditions.
• You will be able to better maneuver the vessel at low speeds.

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