I know you’re probably wondering what cargo ready date (CRD) is.

Don’t worry, this guide will explain everything you need to know about CRD.

So keep reading to learn more.

What is the Meaning of Cargo Readiness in Shipping?

This term is connected to international trade and refers to an exact date when the vendor or shipper makes the cargo ready to be handed over to a transporter.

What is Cargo Ready Date (CRD)?

Cargo ready date refers to the day that shipment is expected to be prepared at the supplier or another location named.

This can be a warehouse, container yard, or airport terminal.

The shipping company is supposed to update and adjust the app’s shipment plan whenever a change in the dates takes place.

What is the Difference between Cargo Ready Date and Delivery Date in Shipping?

Cargo Ready Date refers to the specific day when cargo is anticipated to be ready at the supplier’s location or another named place.

On the other hand, the delivery date is the actual date that the cargo is delivered to the buyer.

It is important to note that the delivery date does not always be uniform with the expected delivery date.

It is due to several arising factors.

Is Cargo Ready Date the Same as Estimated Time of Departure?

No, Cargo Ready Date is not the same as the Estimated Time of Departure.

Estimated Time of Departure refers to the specific date and time that cargo is expected to depart from the supplier’s location.

On the other hand, Cargo Ready Date will only specify the date when cargo is anticipated to be ready at the supplier’s location or another named place.

How do you Determine if Cargo is Ready?

Some of the elements that determine if cargo is ready to include:

• Availability of the complete shipment at a location that is agreed with the parties.
• Shipment is well packaged to be moved by the agreed-upon means of transportation.
• All documents for international shipping are well prepared and made available.

What is a Cargo Ready Shipment Example?

An example of a cargo-ready shipment is a wooden crate that can be stuffed with ease as a less than container.

This shipment should sustain being loaded into a truck at the shipper’s premises, unloading into a warehouse of a freight forwarder, and reloading into a container.

It should also sustain shipping to the required destination, which includes handling techniques applied to the container.

When establishing the value of the packaging’s worthiness, it is essential to consider that the cargo will be handled not less than six times.

Also, be aware of other impacts during transit.

Is it Possible to Change Cargo Ready Date?

Yes, it is possible to change the cargo ready date, especially in situations where cargo is prepared before the parties agreed upon.

There will be needed to plan for an early shipment in this situation, and this will require effective coordination with the freight forwarder.

The Cargo Ready Date may also change if cargo is ready after the date agreed upon by the parties.

In this case, there will be a delay in the delivery of the cargo to the buyer.

When Does CRD Change?

Cargo Ready Date can change when:

• Cargo is ready before the Cargo Ready Date.
• If cargo is ready after the Cargo Ready Date agreed upon by the parties.

What Happens when CRD Changes?

Once the Cargo Ready Date passes, all freight quotes expire, and the rates are related to the selection.

It happens because carriers’ rates of freight are given very frequently and have a limited time guarantee.

Due to this, ocean FCL rates have a validity period of two weeks at a time.

LCL rates are relatively longer and usually last up to the end of the month.

On the other hand, air rates are more subject to variation and may expire after a week or even less.

In case a booked quote expires, then there will be the need for requoting the shipment using the new updated rates.

Once this is done, then the cargo can be moved to the buyer.

Who sets Cargo Ready Date?

The cargo ready date is agreed upon by the seller, buyer, and freight forwarder.

Are There Special Packaging Considerations for Cargo Ready Goods?

Yes, there are special packaging considerations for cargo cargo-ready goods, which depend on transportation mode.

Less than container shipments and ocean freight cargo should be well packaged in a way that prevents damage during handling and sea transportation.

When the cargo is handed over to the freight forwarders, they will check to ascertain if it is deemed worthy of transport.

They will then either reject or repackage the cargo at a cost.

The packaging of the Cargo Ready Goods must be able to withstand:

• Loading onto trucks at the premises of the supplier.
• They must also withstand unloading using handling equipment like forklifts and cranes.
• Reloading into marine containers.
• Un-stuffing of the container at the premises of the freight forwarder.
• Reloading onto a truck for transportation.
• Unloading at the buyer’s premises.

The packaging of Cargo Ready Goods generally depends on the goods.

Some of the packaging examples include:

• Cardboard.
• Wooden crates.
• Boxes.
• Rolls.
• Drums
• Bales.

Pallets can help reduce the risk of damage because they help make the handling of the cargo automatic.

Less of the container load shipments are recommended to be stacked.

Cardboard boxes must be strong and filled well to avoid crashing if cargo is put on top of them.

Does Cargo Readiness Mean that the Cargo is Cleared for Export?

No, cargo readiness does not mean that the cargo is cleared for export.

This is because the custom clearing process of exports is conducted by a customs house broker or freight forwarder and occurs after the cargo readiness date.

The documents are required to be submitted alongside the customs declaration first to the relevant authorities.

What is Notice of Readiness? And Who Issues it?

Notice of readiness is agreed between the exporter and importer or buyer and seller.

The seller or the exporter issues it to the importer and freight forwarder to reconfirm cargo readiness.

Notice of Readiness is most often referred to as NOR.

What Happens After Cargo Readiness?

Once cargo is ready, there is always an agreement between the importer and exporter (seller and buyer).

This agreement states that the exporter should notice readiness to the importer and freight forwarder for reconfirmation of cargo readiness.

This document is frequently referred to as Notice of Readiness (NOR).

After cargo readiness, the cargo is handed over to the party supposed to conduct transportation for the buyer.

The party may either be a freight forwarder or a locally sourced transportation company.

Can Cargo Be Ready Before or After CRD?

Yes, cargo can be ready either before or after the Cargo Ready Date.

In case it is prepared before the Cargo Ready Date, there can be an arrangement for the cargo before shipping.

When cargo is ready after the Cargo Ready Date, then there will be a delay in delivery.

What Happens when Cargo is Ready is After CRD?

When cargo is ready after CDR, there will be delayed delivery to reach the buyer.

In this case, there should be an agreement between the parties on what the merits should be.

Some of the merits could be introducing given flexibilities in the cargo readiness dates and having an agreed penalty scheme for delays.

The parties may also decide to use a faster mode of transport like airfreight and all the party’s costs at fault.

What is the Relationship Between Incoterms and CRD?

Cargo Ready Date (CRD) refers to the day on which your cargo is anticipated to be made available at the supplier’s location or another specified location.

It is the expected date that your cargo will be ready and available for collection by a carrier.

That is, when handling cargo on Ex Works (EXW) terms, the seller will take it.

In case the buyer decides to deliver their cargo on a relevant drop-off point, then the CRD will be the date which the shipment is dropped off.

Of course, this can happen when shipping on Free on Board (FOB) terms.

The drop-off point may be either at the airport or seaport.

How Does CRD Affect Shipping?

Some of the effects of CRD on shipping include:

• Delayed delivery: in case cargo is not ready before the parties’ agreed-upon period, then there will be a delay in the delivery of the cargo.

It will result in the incurrence of additional costs.

• Early shipment: when cargo is ready before the cargo Ready date, it may be shipped to the buyer earlier than planned.

What does ‘All Short’ mean Regarding Cargo Readiness?

‘All short’ in terms of cargo readiness refers to when the destination service center does not receive a shipment as per the schedule agreed upon.

Then reports it as ‘all short.’

Can I Track Cargo That is not Ready?

You may track cargo that is not ready as order tracking is essential in the shipping process.

Some of the reasons why you should track your order include:

• Reduction of costs: it helps you avoid incurring the cost of dealing with customers’ complaints due to delivery of goods that do not meet their specifications.
• Meeting customer expectations: tracking cargo through every step of the cargo readiness process will ensure that the customers’ needs are met efficiently.
• Have more control over fulfillment: monitoring cargo that is not ready will enable you to access more control over the process of cargo fulfillment.

What Happens if my Goods get Damaged or Lost Just Before CRD?

In case your goods get damaged or lost just before Cargo Ready Date, steps you may take include:

• Fill out the proper freight claim, cargo claim, shipping claim, or transportation claim paperwork.
• Pay the cargo bill as soon as possible.
• Write down everything and, if possible, take clear photos.
• Notify your insurance underwriter.
• Keep all the necessary documents:

1. Copy of the paid freight bill.
2. Copy of the bill of lading.
3. Copy of the invoice indicating the amount paid for the goods.
4. Copy of the packing slip.
5. A standard claim form or a letter is showing the shipment and the amount of the claim.
6. Pictures of the damage.

It is essential to gather a lot of information and evidence to obtain compensation for damaged or lost cargo.

It would be best if you also had a professional expert to make all the claims and documentation to save on the costs.

What can delay my Shipment’s Cargo Ready Date?

Shipment’s Cargo Ready Date can be delayed by:

Conflicting Buyer and supplier timetables: suppliers most often give an ambiguous Cargo Ready Date to attract and secure buyers.

In case this date moves, then the timeline of shipping the cargo will be delayed accordingly.

Should I pay for my Order Before Notice of Readiness or After?

You may pay for your order either before or after the notice of readiness, depending on the agreement you have with the seller.

Some of the requirements for a valid notice of readiness to be served include:

• Vessel should arrive
• The vessel must be ready to receive or discharge its cargo.
• It is tendered contractually.
• Notice of readiness is given to and received by the proper person according to the agreement.
• The notice of agreement is issued at a time that the charter party permits.

Can I Estimate the Delivery Date by CRD?

Yes, you can estimate the delivery date by Cargo Ready Date.

The estimated delivery date refers to when the buyer may expect the cargo to arrive at their location.

This date may be determined once the cargo ready date has been specified, and the goods are at the carrier’s custody.

However, it is essential to note that delays in shipping cargo may happen due to several reasons.

In such scenarios, the estimated delivery date makes it possible for the buyer to put plans in place.

Does Cargo Ready Mean that the Goods Have Already Been Inspected?

No, Cargo Ready does not necessarily mean that the shipment has already been inspected and cleared by customs.

The customs clearance process is carried out by either the freight forwarder or customs broker and can only be done only after the cargo readiness date.

It is a requirement that the documents be submitted to the relevant authorities alongside the customs declaration.

How do I Coordinate CRD when Sourcing from Different Suppliers?

When sourcing from a different supplier, the Cargo Ready Date may or may not remain the same depending on the parties’ agreement.

It is essential to ensure that all suppliers get the cargo ready on the same date by using the following helpful tips:

• Communicating with the suppliers to avoid mistakes.
• Coordinate your production schedule totally with that of the suppliers.
• Provide an update on new products or strategic changes so that they may adapt to those adjustments.
• Understanding the costs of the suppliers and the value that they provide.
• Establishing your business’s priorities with the suppliers.
• Working with businesses that help in strategizing services.
• Establishing long-term partnerships with the suppliers.
• It is continuously monitoring the performance of the suppliers.
• Planning for contingencies and everyday exceptions.
• Payment of bills on time.
• If possible, meet face to face and look at how the supplier’s businesses work.
• Meet the personnel that will be managing your account and make sure they are easily reachable.
• Assist your suppliers by planning orders on time to avoid delays.
• Make your business very essential to the supplier.

The terms for negotiating with your suppliers need to be based on:

• Payment terms: this may be the commercial bill, bank draft, foreign currency, or paid for by the bank.
• Potential costs: maybe taxation, administration, transactions, transport, and general payments.
• Possible risks; may be either late payment to the vendor, or undelivered, late, or faulty goods.

At Tj chinafreight, we help you import seamless from China while reducing the shipping and cost.

Whether you need free warehousing China, free shipping container or customs clearance at affordable rate, Tj chinafreight will handle everything for you.

Contact us now to save on shipping cost and time.

If you have any question about this common freight term – carrier; you will find the answer right here.

This guide explores every information you’d wish to know about carrier, from basic definition, services, rates and classification, among other vital aspects.

So, keep reading to learn more.

What is a Carrier in Logistics?

A carrier refers to an individual who has the legal permission to transport cargo via land, air and water.

They usually serve the purpose of a shipper from one point to another.

What is the Role of Carriers in Shipping?

The role of carriers in shipping include:

• Taking over the shipment.
• Preserving the shipment from damage during transportation.
• Transportation of the shipment to its destination using the most appropriate means of transportation.

What is the Difference Between Carrier and Shipper?

A carrier refers to any individual or company who performs the purpose of transporting goods in a contract of carriage from one point to another.

On the other hand, a shipper is an individual or company who owns or serves as the goods’ supplier to be shipped from one point to another.

How Many Types of Carriers Are There?

• Common carrier: this is a provider of transport that gives their services to any individual or company because of the legal permission.

A common carrier can work with many shippers in a day as they do not have a binding contract.

• Contract carriers: this is an individual or company that gives transport services to a specified shipper for a long duration.

This agreement between the shipper and carrier is bound by a long-term agreement contract between the parties.

• Local carriers: this consist of most of the trucking industry and almost sixty per cent of all carriers who use motors.

They can provide service to limited areas.

• Regional carriers: these have more trucks and larger fleets, and they serve in vaster areas.
• National carriers: these are the largest carriers available in the market.
• Private carriers: these transport freight on the shipper vehicles and therefore do not charge additional fees.
• For hire carriers: these can transport general freight and thus charge additional fees for service.

What Services do Freight Carriers Offer?

Services offered by freight carriers include:

• Warehousing: freight carriers know how to handle different types of goods by either owning their warehouses in various locations.
• Offering advice to the shipper: freight carrier advises and helps clients move cargo more efficiently from one point to the destination.

In case of any possible changes in freight transportation, they inform the client in advance.

• Booking freight space on the mode of transport to be used: freight carriers help shippers by booking cargo space on trains, aeroplanes, ships, trains, or other means of transport.
• Provision of shipping options like road haulage, containerization, and air freight.
• Packing: the freight carrier organizes shipment packaging before it is dispatched for transportation to protect it from damage.
• Distribution: they assist in the delivery of the cargo to the shipper’s destination.
• Cargo insurance: freight carriers may at times organize for insurance of cargo depending on the contract of agreement.

This will ensure the security of the goods in case they are damaged or lost while in transit.

• Documentation and customs clearance: the freight carrier organizes and delivers documentation to import and export goods.

They also ensure these documents meet the custom requirements and the contract agreement between them and the shipper.

Which Industries Benefit from Carrier Services?

Some of the industries that benefit from carrier services include:

• Food and drink.
• Plastic and resin.
• Automotive.
• Pharmaceutical and healthcare.
• E-commerce and retail.
• Transportation service and trade show.
• Aerospace and defence industry.
• Industrial supplies and produce.
• Sensitive deliveries and specialty Duties of a common carrier include:
• Carrying goods safely: a common carrier has the duty of transporting goods safely up to the destination.

In case there is loss or damage on the way, the carrier will be responsible.

• Acceptance of goods: the common carrier has the obligation of accepting the goods from any individual that would like their goods to be transported.
• Usage of the common route: the common carrier can transport the goods using the general route.

The carrier should not engage the shortest route in transportation and should also treat ordinary circumstances.

• In time delivery: the common carrier has the duty of delivering the shipment within the time agreed upon in the carriage contract.
• Obedience of instructions: the common carrier should honour the sender’s instructions concerning the transportation of goods.
• Delivering to the right person: it is the duty of common carrier to ensure that the shipment is handed over to the right person.

In case the shipment is delivered otherwise; the common carrier will be held responsible.

• Proper place: the common carrier must ensure that the goods are delivered to the right place specified in the contract.

Who is the Carrier in a Bill of Lading?

In a bill of lading, the word carrier includes the company named the carrier on the bill of lading, the defined vessel, and the owners and operators.

This term also includes the demise and time charterers, any substituted or connecting carriers.

It also constitutes any time engaged individual or charterer to the extend bound by the bill of lading whether they serve as the carrier or Bailee.

The carriage of the goods is regulated by all the terms and tariff provisions by the governing bodies.

Copies of the necessary provisions can be obtained from the carrier when requested.

The carrier has the responsibility of ensuring port to port shipment and combined transport.

What is the Difference Between Carrier and Freight Forwarder in Logistics?

When shipping internationally, businesses have the challenge of deciding whether to use an international freight forwarder or work directly with a transportation carrier.

Some of the differences between carrier and freight forwarder include:

• Shipping documentation: Carriers issue their bill of lading which may or may not be based on a given global standard but the agreement contract.

On the other hand, Freight forwarders must issue a bill of lading which id based on standardized documentation.

• Specific role: carriers serve as middlemen and oversee the shipper’s cargo’s transportation up to the destination.

Freight forwarders, on the other hand, serve more like an agent to the shipper.

• A carrier is a shipping line while a freight forwarder is not a shipping line.

This is because you can book a carrier directly with a shipping line while for freight forwarder, you need to book them through as a forwarder.

• Containers: freight forwarders do not own any shipment equipment while most carriers own and operate their shipping containers.

What is a Carrier Facility in Shipping?

A carrier facility refers to a large warehouse used to keep packages ordered by people for a specific geographical location.

Carrier facilities are owned by different brands which can carry packages.

Some of the carrier facilities may be very large warehouses possessing fleets of delivery trucks whereas others may be small retail facilities in the front.

It will depend on the coverage area, a few square miles or even entire countries.

Packages can pass via one carrier facility, or they may pass through a few different carrier facilities.

Is there a Difference Between Shipping Line and Carrier?

In many cases, they are the same thing, but also, there are differences between shipping line and carrier.

In the simplest terms, a carrier referred to as a shipping line is an individual or company that performs transport functions for a shipper.

The carrier can carry the cargo using either sea, road, rail, inland waterway or even a combination of these modes.

Nowadays, there are agreements of sharing vessels, consortium, and alliances within the shipping industry.

It has led to various parties in the shipping industry, in terms of ship operation, container service and line service.

In such alliances of shipping lines, all lines may be running vessels of their own but based on a liner schedule which is fixed.

Each shipping line will have to share vessel space, and the number of vessels usually determines this operates by each shipping line.

In this case, each of the shipping lines will load and discharge cargo according to the agreed-upon schedule irrespective of whether they own the ship or not.

This will call for agents to act as vessel agents and carrier agents.

The functions of the vessel agent will include:

• Coordination with partner lines concerning their cargo details, size, weights, types or hazardous for finalization of stowage plan.
• Liaising with port authorities to ensure that the vessel berths on time, starts and completes cargo operation
• Operation of the vessel.

In case a carrier serves as a vessel agent; their operation division will have to handle the vessel side while the commercial division handles the carrier agent side.

The carrier agent will have to handle the following commercial activities:

• Cargo booking.
• Issuance of their bill of lading.

Because the shipping lines will be giving their bill of lading for the shipment loaded under their control, they will be responsible for any damages.

Can you consider NVOCCs as carriers?

Yes, you can consider NVOCCs as carriers because they act as middlemen and make one hundred percent work for shippers.

NVOCC stands for Non-Vessel-Operating Common Carrier.

It is usually issued its bill of lading which at times may not be based on any global standards.

However, it is difficult to establish how many NOVCCs are operating worldwide because any regulatory body does not govern them.

Before the provision of service, NVOCC is required to meet the following:

• Secure a license from the FMC.
• Publish a tariff about charges that willapply to clients.
• Provide proof of financial responsibility in case payment is required for any claims that may occur.

The client list of NVOCCs may include:

• Exporter
• Importer
• Clearing agent
• Freight forwarder
• Freight broker

How Does your Choice of Carrier Influence Shipping?

Some of the factors to consider when choosing a shipping carrier include:

• Type of products: when choosing different carriers, it is important to carefully examine the shapes, sizes, and services they offer to ascertain the best choice.
• Location: If you would like to ship both locally and internationally, you must select a carrier that will meet both functions.
• Cost, time, and quality: pricing will greatly influence a carrier’s choice as it is important to choose a carrier you can afford.

It is essential to consider the quality and the delivery time and the cost of the carrier.

• Reliability: it is important to establish if the carrier is reliable to assist you in building the company’s reputation.

A reliable carrier will ensure that your cargo reaches its destination on time as promised.

• Services offered: it is advantageous to do business with a carrier who offers multiple services and can effectively meet your company’s needs.
• Safety: Safety of a company’s product is a key consideration; therefore, when selecting a carrier, it is important to select one that has a safe reputation.
• Sustainability: when doing international shipping, it is important to establish if the carrier follows sustainable practices.

Customers also pay close attention to the environment’s sustainability.

• Carrier stability: selecting a stable carrier in the market and has been doing business for long is important to your business’s long-term functioning.

It will not be economical to ship cargo at a lower price using a carrier that is not stable in the market.

• Asset versus non-asset-based carriers: asset-based carriers tend to have all the necessary equipment for transporting your cargo, unlike the latter.

It is important to choose asset-based carriers to minimize the hands that handle your freight, thus minimum room for errors during shipping.

• Insurance: it is important to know that not all carriers provide insurance of cargo despite it being an important feature in international shipping.

Therefore, it is important to select a carrier that provides insurance to have peace of mind.

How Much does a Carrier cost?

Different carriers tend to have different rates for shipping cargo depending on the following factors:

• Service mix
• Weight and zone distribution
• Destination points
• Dimensional weight
• Carrier perks
• Commodities
• Other factors: include

1. Shipments that require special packaging.
2. Declared value.
3. Additional handling.
4. Special pickups
5. Oversize shipments.
6. Maximum shipments.
7. Dangerous goods.
8. Signature requirements for delivery.
9. Seasonality

The key consideration in pricing is establishing how the fees you are incurring aligns with the actual costs being incurred by carriers.

After determining this, you should negotiate accordingly.

Do Carrier Fees Include Fuel?

Yes, carrier fees include fuel, and this is charged on top of the basic shipping rates.

These fuel surcharges are put in place to assist carriers in taking care of the costs that are related to fuel.

These costs are put in place due to the constant fluctuation in fuel prices.

These fees are determined weekly depending on the fuel price report compiled by the Energy Information Administration.

Most carriers tend to use these rates using a calculator for fuel surcharges to determine the additional charge to impose.

This offers protection to their bottom lines.

If you consistently ship large volumes of cargo, you may negotiate with the carrier for a flat rate for shipments to curb these surcharges.

How are Carrier Rates Determined?

The actual price that one pays depends on various factors, many of which directly relate to the shipment.

The main factors determining the rates of carriers include:

• Weight of the cargo.
• Truck freight rates.
• Size of the cargo.
• Mode of transport.
• Distance to be covered.
• Points of pickup and delivery points.
• The actual goods to be shipped.
• Handling costs.
• Type of cargo.

Each of the above factors plays an independent role in establishing carrier rates, and they also relate to each other.

Do Carriers Charge Accessorial Charges for Shipping?

Yes, carriers charge accessorial charges for shipping.

An accessorial charge refers to a fee which is added to the freight invoice of a shipper.

This fee is for services which the carrier carried out beyond that agreed upon in the agreement contract.

Accessorial charges cater to services rendered past the pickup and delivery operation established when the shipment was made.

They tend to cover many services provided beyond the fuel surcharge and the line haul charge concerning cargo transportation.

These changes manifest in a variety of forms and affect all modes of transport services available.

Some charges may be one-time incurrence while others may accelerate daily until a solution to the situation is found.

Some of the top accessorial charges include:

• Yard Pulls.
• Advanced Notification.
• Driver Count.
• Driver Clean.
• Hazardous Materials.
• Inside Delivery.
• Layover.
• Liftgate.
• Limited Access Fee.
• Redelivery.
• Residential
• Rework.
• Scale.
• Sort / Seg.
• Stop Off Charge.
• Storage.
• Truck Order Not Used (TONU).
• Bill of Lading (BOL) Correction Fee.
• Chassis
• Demurrage.
• Detention.
• Driver Assist.
• Lumper.
• Misuse Charge.
• Out of Route Miles.
• Oversized / Overlength.
• Overweight.
• Per Diem.
• Pool Setup or Teardown.
• Reclassification & Reweigh.

Why do Carrier rates Change Every So Often?

Carrier rates change every so often due to the following factors:

• Bunker fuel costs: this refers to a floating cost which the carrier varies depending on the fuel prices; when they rise and fall.
• Market demand: carriers tend to raise their rates during the peak seasons due to the increased demand.

They lower the prices during off-peak seasons because of decreased demand.

• Terminal costs: when terminal costs rise due to congestion issues, carriers tend to increase their rates.

Which Payments Methods do Carriers Accept for Freight Charges?

Some of the payment methods that carriers use for freight charges include:

• Wiring money straight from the shipper through an international transfer.
• Opening an account and making a local transaction.
• Use of Alipay or Alibaba Trade Assurance.
• Transfer of funds through western union.
• Use of pay pal.

What is the Difference Between Courier and Carrier?

Courier services are used in the transportation of small shipments while carriers are mainly used in moving large shipments from one point to another.

Courier service is used in shipments of between one and 15 boxes depending on the location, weight and volume.

Carriers, on the other hand, are used to ship any cargo which exceeds 150 lbs.

Courier services use door to door method of delivering cargo to individuals.

Due to their large shipments, carriers need larger trucks with specialized equipment and loading and unloading sites.

Carriers do not deliver cargo as quickly as courier services, but they are the most economical and help cut costs.

Do Freight Carriers Provide Insurance during Shipping?

Not all freight carriers provide cargo insurance when shipping goods.

However, you must select a carrier who gives cargo insurance to ensure that your goods are protected from loss or damage.

Insurance will ensure that goods are safe when stored, when in transit up to the final destination.

Are Carriers Liable for Damaged, Lost or Stolen Goods During Shipping?

Carriers may or may not be liable for damaged, lost or stolen goods during transportation depending on carriage contract.

These types of contracts include:

• Contract of carriage at the owner’s risk: under this, the carrier will not be liable for the goods damaged, lost or stolen during shipping.

The only exception will be in case the loss or damage was caused by the carrier intentionally.

• Contract declared value risk: in this, the carrier will be liable for the goods damaged, lost or stolen during shipping up to an amount stated in the contract.
• The contract for limited carrier’s risk: the carrier’s liability for goods lost, damaged or stolen will be up to a certain amount.
• Contract on declared terms: the liability of the carrier for goods stolen, lost or damaged during shipping will be according to a specified term in the contract.

In the case there is no contract between the shipper and the carrier, then the default solution will be a contract having a limited risk on the carrier.

What is Carrier Compliance?

Carrier compliance is whereby a carrier meets the required legal requirements of operation and possesses the right level of insurance.

This will ensure that their customers are protected from any financial harm and are safe to work with professional drivers and dispatchers.

Shippers have a critical concern to ensure that the carrier meets compliance requirements to avoid:

• Financial repercussions.
• Delays in fulfillment of orders.
• Out of stock warehouses
• Perished freight
• Damaged freight.

Some of the benefits of carrier compliance include;

• Ensures a quality partnership between a carrier and a shipper and eliminates elements of unwanted distrust.
• Protects the assets of a company.
• Maintains the image of a company.
• Lowers the costs of a shipper’s company while at the same time offering guaranteed quality.
• Creates a safe environment for shipping.
• Builds enhanced visibility on all the information and data required.

What is the Relationship BetweenFreight Carriers and Freight Brokers?

Freight carriers refer to an individual or business which runs a fleet of trucks and transports your goods from one point to another.

These carriers have ownership of the trucks, and they make payments to drivers and take care of scheduling and dispatch.

In the areas that they operate, fright carriers tend to possess coverage; thus, it is possible to track progress.

In case of any issues during shipment of cargo, they are addressed through the freight carriers.

On the other hand, Freight brokers do not possess any equipment for shipping and do not operate trucks.

They also do not have coverage in the areas they operate, and mostly they serve as brokers for the freight carriers.

The freight broker’s main job is to link up freight carriers with shipments because they are well-versed.

They are well aware of the routes, terminals, and areas of coverage and thus assist in faster cargo movement between points.

They assist carriers in dealing with tracking shipment issues and customer service issues that may arise during goods transportation.

Freight carriers are more appropriate when making a single shipment with a single drop point and fill up the vessel space.

In case you have multiple shipments, which do not c=occupy the entire space, then a freight broker comes in handy.

Before choosing a carrier, it is important to ensure that your cargo is well packed and ready to be transported.

Do Freight Carriers Provide Tracking Services?

Yes, freight carriers do provide tracking services, and this grants a sense of assurance to both the carrier and the shipper of safe and timely arrival of cargo.

Technology improvement is easier and accurate to track shipments using even your computer or phone.

Some companies who do shipping tend to use other different methods of tracking like:

• Bill of lading.
• Progressive Number.
• Shipment number.
• Purchase order number.
• Shipment reference number.

Some of the benefits of freight shipment tracking include:

• Reduction of customer anxiety.
• Gives delivery information.
• Increases transparency.
• Decreases customer service demands and costs.
• It assists in the easier location of a lost package.

How do Carriers Classify Freight During Shipping?

The main purpose of carriers classifying freight is to determine fair means to use to standardize freight pricing.

Freight classification is determined by several factors which include:

• The ease of handling the goods or whether special equipment is needed.
• Liability associated with the cargo putting into consideration how hazardous or valuable the cargo is.
• The fright’s density.
• Storability of the cargo; the ease of storing the goods and maintain them in good condition during transportation.

When selecting a carrier, it is very important to choose one that is well aware of freight classifications.

This is because the changes in classification can be expensive.

The shipping company should assist you in the quick determination of the classification of your freight.

Many organizations use freight calculators to answer the classification and the cost to be paid.

The major determinant of freight classification is density, which refers to the weight of a good for a given volume.

In the United States, freight companies establish the freight’s class by measuring its density in pounds per cubic foot.

Freight that weighs less than a pound per cubic foot is classified under 400 class freight.

That which weighs less than two pounds per cubic foot is classified under 300 class freight.

The number of the freight’s class tends to drop as the density increases.

For those goods which weigh above thirty pounds per cubic foot, the class of freight is sixty.

Do all Carriers Ship Hazardous Material?

No, not all carrier is willing to ship hazardous materials.

Besides, some carriers may completely refuse to transport cargo which is not on the official list, which they believe may pose a danger in their operational activities.

Therefore, it is essential to know whether the carrier company ships hazardous material or not depending on what you want to transport.

Some carriers ship hazardous materials, but it is important to have all the governing bodies’ approval materials.

This sill also makes the carrier aware of the types of hazardous materials you want to move and the preventive measures required.

Types of hazardous materials include:

• Poisonous gas.
• Explosives.
• Radioactive materials.

What is Carrier Selection?

Carrier selection is the process of having multiple carriers choose from to lower your products’ shipping costs.

The main reasons why you require carriers to choose from include:

• Consumers always demand more options and choices as they are not satisfied with standard shipping nowadays.
• The sizes and delivery requirements of e-commerce may vary.
• Different carriers tend to offer different levels of service.
• More carriers bring about more rates which are competitive.
• Carriers may not provide open-ended services.
• Interlining is very important to e-commerce globalization.
• Availability and increment in shipping lanes.

At Tj chinafreight, we offer custom shipping solution from China.

From booking spaces in ships, warehousing, transportation to custom clearance – we will make the entire shipping process easy and simple.

Contact us today for all your shipping needs.

This guide explores all the vital aspects you need to know about container freight station fee.

So, before you seek for services in a CFS facility, read this guide.

Let’s dive right in.

What is CFS Fee?

A Container Freight Station fee refers to an amount of money charged for loading, unloading as well as packaging services at a warehouse.

This charge mostly applies to LCL shipments.

Once your LCL shipment arrives at the port, it is transported to a container freight station where unloading takes place.

Each cargo from different importers is separated from the rest and loaded into a truck.

Thereafter, the truck transports the goods to the warehouse.

The fee charged for this service will vary depending on the number of goods or the weight of goods. The more goods you have the higher the CFS fee.

However, sometimes the fee remains similar for specific categories of goods.

What are CFS Fees Used For?

CFS fees are applied to cater to the services offered in a container freight station. Such services are not limited to;

• Consolidation of goods in the port of origin – This involves combining different shipments from different importers to one container.
• Deconsolidation of goods in the port of destination –Disintegrating shipments from different importers.
• Smooth transportation of your container.
• Storage of the goods.

Which Activities Attract CFS Fees?

CFS fees are one important aspect that any importer should be keen on following up on as it might result in additional costs.

Generally, the CFS fee is charged to cater to the preparation activities conducted in the freight station for your goods before or after being shipped to the destination port.

Some of the activities that will attract CFS fee are not limited to;

• Shipping container loading and unloading
• Storage of goods
• Daily Floor space rent for containers
• Container inspection. It includes scanning the container to confirm that the cargo is the declared one.
• Handling of your goods when passing through customs.
• Movement of your goods from the container freight station.
• In case a container is damaged your cargo will need to be shifted to another container. This will in turn attract CFS fees.
• Any amendment on documents will attract a CFS fee.
• Before the containers are loaded on a vessel, they are weighed to confirm that they meet the required weight. This attracts a CFS fee.
• Sweeping the container.
• Sometimes, vessels are used to load and unload containers, and when such vessels are used CFS fee applies.
• Repairing the container.

How is CFS Fee Calculated?

The CFS charges are determined by several factors one of the main being the quantity of the cargo.

CFS fee varies from one country or region to the other and therefore you shouldn’t expect a standard amount to be charged.

Normally, CFS charges will be calculated based on the type of container used in transportation.

For instance, containers that are more than 40ft, the fees will be 200% of the 20ft container fees.

For the same size of the container, the ground charges will be 300% of the 20ft container fees.

Which factors Determine the CFS Fee?

The fees charged for Container freight stations will vary depending on several factors such as;

• Quantity of goods being shipped. The more the cargo the higher the CFS fee.
• Seasons – Shipping during high seasons will shoot up CFS fees as the services are in higher demand.

November and December are considered high seasons.

This is the period in which most businesses restock in preparation for the holiday seasons.

You should also take note of Chinese holidays which normally happen around January and February.

The weeks before this occasion are considered high seasons and therefore you are bound to pay a higher CFS fee owing to higher demands.

• Government regulations – CFS fees vary from one country to the other owing to different government regulations enacted.
• The type of shipping container used in the transportation process. Some products such as perishables will require special containers and this, in turn, raises the CFS fee.
• Type of goods being shipped – Some goods are perishable and will require special handling.

As such, the use of containers with refrigerators also applies and all this will shoot the CFS fee higher.

How Does CFS Fee Affect International Shipping?

When shipping using LCL, you need to be very knowledgeable when it comes to understanding CFS charges.

Failure to this might result in you incurring extra charges.

CFS fee caters to the services offered once your goods are loaded into the ship.

Sometimes, the customs authorities might choose to collaborate with the customs officials in the destination country.

The main reason being to charge the same fee for both countries.

However, it is rare for this to happen.

As a business owner or importer, it’s important to take into account what CFS entails before commencing your shipping procedure.

That said, CFS can have some effects on your international shipping in the following ways;

• Causing delays – Failure to discuss the costs before shipping begins might result in delays.

It’s always advisable to ensure that all requirements and agreements are met before commencing your shipping process.

• More costs incurred – This happens more so when dealing with logistics.

Working with a qualified logistics company will save you the agony of incurring extra costs.

• Failing to reach an agreement on desirable prices for both the exporter/importer and the customs officials leads to poor relationships.

Working with the appropriate logistics company will not only ease the negotiation but also allow you to continue with your daily business activities.

Logistics Company will carry out all the processes on your behalf.

Who Pays CFS Fee?

The importer or exporter is responsible for settling fee payments for the container freight station.

Can you Negotiate CFS Fees?

Yes, you can negotiate the CFS fees.

However, you need to do this on time to avoid any delays.

Negotiating process can be quite challenging and therefore most importers chose to work with freight forwarders.

Freight forwarders come in very handy more so if you are not well oriented with matters regarding customs clearance.

In addition to that, it relieves the stress associated with it and you are left to continue with your daily routines without any worries.

Can you Delay Paying CFS Fees?

Yes, payment of CFS fees can be delayed owing to several reasons.

Nevertheless, you need to keep in mind that this might attract additional charges otherwise referred to as demurrage.

Normally, the officials have a specified period to allow importers to complete all the necessary customs clearance processes.

Once this time lapses, the importer will be required to pay demurrage to the concerned officials.

How can CFS Fees Impact You?

CFS fees can hugely cause an impact not only on you but also on your business.

Think of it this way, a misunderstanding emerges regarding the CFS fees.

In the middle of all these, delays follow and as a result, additional costs are incurred.

As if that’s not enough, such a situation will negatively impact your business in a manner that you won’t be able to make decisions or run your business effectively.

Not forgetting that this might also diminish your relationships with customs officials.

To avoid all this, you can choose to work with a freight forwarder or ensure that you are very knowledgeable on the customs operations before commencing your shipping process.

What is the Difference Between CFS Fee and VGM Fee?

Verified Gross Mass(VGM) fee not only refers to the weight of the goods and bracing but also the weight of the empty containers.

This includes all the equipment used to position the cargo in place.

On the other hand, the Container Freight Station fee is an amount of money charged on service provision at the warehouse as goods undergo clearance, consolidation, and deconsolidation.

Do CFS Operators Charge CFS Fees on Empty Containers?

Yes, they do. CFS fee is imposed on empty containers too to cater for services such as the ground charges.

Is CFS Fee for LCL Shipments and FCL Shipments the Same?

FCL shipment doesn’t need a CFS fee. Container freight station only serves LCL shipments and therefore the CFS fee for FCL won’t be applicable.

Generally, it’s always more expensive to ship via LCL as compared to FCL owing to the consolidation and deconsolidation tasks.

Do You Pay CFS Fees During the ‘Free Period’?

Yes, once you pay for CFS fee it covers the “free period”. After the expiry of the free period, you will be expected to pay demurrage.

This charge is meant to cater to the storage and re-marshaling.

What are the Payment Options for CFS Fee?

CFS fees can be paid through the various payment options used in freight payment. Some of these payment options are not limited to;

• Letters of credit – Letters of credit are considered one of the safest payment methods you could use during your shipping processes.

The importer’s and exporter’s banks are the ones taking care of payments and therefore both parties are well secured.

• Bill of exchange– A bill of exchange is used when doing cash against goods type of import.

The importer’s bank is responsible for making payments to the exporter.

• Cash in advance – As simple as this payment method might be, it poses risks to both the seller and buyer.

Therefore, using cash in advance would be ideal when dealing with a person that you know well.

• Cash against documents –In this payment option, the importer’s bank has all the control. Meaning, it can release shipment once the payment from the importer is received.

Why do you Need to pay Attention to CFS Fees?

Whether you are exporting or importing goods via LCL shipping, you need to be knowledgeable on what the CFS fee entails.

CFS fee is not a standard amount and thus you can either end up paying the required amount or more than you should.

Before paying the CFS fee, ensure that you understand what the fee covers and the repercussions that follow if you fail or delay paying it.

Delaying the payment will result in delays in your cargo.

This might in turn lead to additional charges once the “free time” expires.

Ensure that both parties involved have a clear understanding of the agreement to avoid any misunderstandings later.

Such are the causes of bad relationships of importers and exporters with the customs officials.

Rarely, the customs officials in the country of origin might choose to collaborate with custom officials in the destination country.

Upon doing this, they agree to charge an all-inclusive fee covering both countries.

Being informed on such practices is important in ensuring that you have adequate knowledge for the smooth running and decision-making of your business operations.

Why do CFS Facilities Charge Higher CFS Fees for Reefer and Hazardous cargo?

Reefer and hazardous cargo require special treatment as opposed to normal types of goods.

Such cargo will need refrigeration containers and dangerous goods containers respectively to prevent them from going bad.

In addition to that, proper handling of hazardous materials is important as they might cause harm.

Owing to this, the amount of CFS charged is normally higher on reefer and hazardous cargo.

What Additional Charges do CFS Facilities Charged on Top of the CF Fee?

Apart from the CFS fee,  CFS facilities impose the following additional charges that you should be aware of;

• Container repairs charges
• Port entry
• Amendments/ adjustments in documents
• Lashing, chocking, and dunnage to secure the cargo
• Transportation into and out of the CFS port.
• Moving cargo from damaged containers to better containers(reworking).
• Sweeping of the container
• Labour for consolidating and deconsolidating the goods.
• Reefer handling
• Shifting cargo with CFS
• Authentication of the weight of the packed container before being loaded into the ship.

Is CFS Fee the same for all Types of Containers?

No, it’s not.

CFS fee varies from one container to the other depending on the size of the container.

The following are the size of different containers; 10-foot, 20-foot, 45-foot, and 40-foot.

The commonly used ones are 20 and 40-foot containers.

Keep in mind that the fee charge will also vary from one country to the other and thus you need to confirm with your local authorities.

Can Cargo be Released from CFS Before Payment of the CFS Fee?

No, it cannot.

You need to clear your CFS fee before your cargo is released from the container freight station.

Failure to do so will not only result in delays but also a poor relationship with customs officials which might affect your future shipment.

Can you Pay CFS Fees online?

Yes. CFS fees can be paid online depending on the agreement you have with the customs officials.

What is a CTF Fee?

CTF fee otherwise referred to as Clean Truck Fee was initially started in Angeles and long beach ports to curb pollution of air.

It regulated the entrance of trucks that caused pollution in the port and allow the entrance of “clean trucks” which reduced pollution in L.A port.

To achieve this, new trucks had to be bought, and therefore to recover the money spent on the new trucks a clean truck fee was introduced.

Is CTF Fee Charged as Part of the CFS Fee?

No, it is not.

CTF fee is charged separately from the CFS fee.

CTF fee is normally charged after all cargo has been claimed.

How Can you Reduce CFS Fees?

There are several ways you can implement to reduce the costs associated with CFS fees.

Some f these ways are not limited to;

• Working with a freight forwarder –Instead of going through all the tiresome procedures which might not only end up being costly but also exhausting.

Working with a freight forwarder is an ideal option.

Freight forwarders already have the know-how on CFS procedures not forgetting that they are well connected.

As such, they can easily take care of your shipping as you continue with your daily routines without worries.

• Be well informed about CFS fees before indulging in them.

Lack of knowledge on how CFS fees work might result in you incurring more costs than usual.

• Don’t classify your shipment as urgent. Urgent shipment tends to attract more charges as opposed to the others.

Plan early to avoid rush hours which might highly shoot your costs up.

• Ship your cargo during low seasons. Before you begin your shipping, do proper research and analyze the best time to ship your cargo.

During the year, there are low and high seasons.

Low seasons have decreased activities in the container freight station and therefore the fees are normally lower than usual.

This would be the appropriate time for you to ship your cargo.

• Shipping hazardous and perishable items increase the CFS fees.

This is because such cargo will need special containers such as refrigeration containers as well as careful handling.

If you are looking forward to starting a business you need to consider such factors and gauge if it will be reasonable for you in the long run.

I am not implying that dealing with such goods is a bad idea but you need to make wise decisions before starting to avoid quitting later after things get hard.

However, dealing with such cargo might also turn to be a lucrative business.

In short, you should consider everything in this guide when choosing a container freight station.

They will help you determine the container freight station fee.

For any questions or inquiries, contact Tj chinafreight team now.

If you would like to learn the ropes of Shipping from Italy to US, read this guide.

It tells you how to ship goods you source from Italy to US hassle-free.

Here, you may find clues to choose the cheapest and fastest shipping methods, cut costs for your business, and much more.

Top Products Shipping from Italy to US

Italy offers a rich and diverse marketplace, providing a wide range of fascinating products.

The country has maintained a reputation for top-quality products and has become a popular market for the US.

According to statistics, in 2019, USA’s top imports from Italy were vehicles, pharmaceutical products, wine, machinery, and electronics. The same goes for 2020.

Here are some of Italy’s most common products that you may import for your business in the US.

· Vehicles

Italy is known for its luxurious vehicles.

They’re fast, sporty, and, well, pretty high-end.

With the US’s knack for quality, vehicles from Italy make a hot commodity in some of the US top vehicle yards.

In 2019 alone, the US imported over $4.6 billion worth of vehicles from Italy.

This only shows how popular Italian vehicle brands have developed a liking across the US.

If you’re considering shipping vehicles from Italy, popular brands such as Lamborghini, Ferrari, Fiat, Alfa, and Romeo are a sure place to start.

· Pharmaceutical Products

You should know that Italy is Europe’s largest producer of medicines and pharmaceutical products.

For these reasons, it is among the US’s top marketplaces for pharmaceutical products.

In 2019, the US imported well over $8 billion worth of pharmaceuticals from Italy, the 2^nd largest US’s imports that Year by monetary value.

With Italy’s skilled workforce and machinery, the country’s pharmaceutical industry guarantees quality product production.

You can import nearly any kind of pharmaceuticals from Italy as long as it is within the confines of the US’s quality and safety standards.

· Machinery

Italy boasts of having some of the best machinery in the world.

Companies such as Pietro Carnaghi, Jobs S.P.A, and the Sacmi group offer an array of machinery.

You can import machinery of any kind from Italy, ranging from packaging, grinding, and processing machinery to the US.

With many other countries heading to Italy for machinery, you can seize the opportunity before the market is flooded.

· Electricals

On average, each household in the US has an electronic appliance in use.

This shows how electronic products are essential and have an equally high demand.

You can import electronic products from Italy either for resell or for personal use.

Electronics from major suppliers such as the AMARC Srl, Tasker, and others are pretty popular among US customers.

· Wine

In the U.S., imported wines are many, but the ones that are from Europe – the land of fine wines.

While European wine has been a favorite of the crowds for a long time, Italian wine, in particular, has been gaining fame at a steady pace.

Wine from Italy is highly praised by food and wine connoisseurs and loved by drinkers all over the US.

Italia wine is well known for its distinctive flavor and taste relished by the regulars of many US wine stores.

Other products you can ship from Italy include food and spices, electrical products, optical, photo, and technical apparatus.

How to choose your Supplier in Italy

The most important part of a successful shipping process is having a good supplier.

And when Shipping from Italy to US, it is vital to have a good relationship with the supplier.

It is more of a standard requirement as Italians, like Chinese, value relationships a lot, whether personal or business.

This is vital if you intend to develop stable business relations for your import from Italy to US business.

With that in mind, there are many ways of finding a good supplier in Italy.

You can rely on your connections for recommendations or search online.

Physically visiting Italy and getting to know your supplier is also another option.

This may not only land you a good supplier but also help you establish the much-needed trust in Italian business relationships.

Note that an ideal supplier in Italy should:

• Be able to provide quality products
• Have flexible payment terms
• Supply you with any quantity of product
• Have prompt turnaround time
• Genuine prices that give you impressive profit margins

Sea Freight from Italy to US

You have three options in shipping your goods from Italy to US.

When you choose which method to use, consider the total volume and weight of your shipment.

The first method of shipping your goods is through Sea freight which advisable if you’re shipping large volumes of goods.

However, sea shipments take a considerable amount of it, at least several weeks to reach the destination port.

Ocean shipping also has additional costs like customs clearance and inland transportation to your distribution center.

Then there are the documents that you have to process in the port of origin and destination.

You can spare yourself the hassle of preparing the paperwork by hiring a 3^rd party agent with custom broker capabilities.

The agent also has to have extensive experience with the port of origin and destination you’re working with.

· Advantages of Sea Shipping

The advantages of sea shipping are many. They include:

• Economical– You cannot mention ocean shipping without talking about how it saves on budget. Compared to other modes of transport over long distances, ocean freight rates are estimated to be four to six times lower.
• Efficiency– Regardless of your cargo’s size, shape, or weight, ocean freight covers you. With LCL availability, FCL, and bulk cargo, you can ship all types of products.
• Safety- Certain types of materials that included Hazmat goods cannot be transported by other means of transport. Nevertheless, ships are designed to ensure safety and offer you safer shipping for all kinds of goods.
• Environmental friendliness- Unlike other transport means, ships provide the most efficient form of carbon transport.

Sea Ports for Shipping from Italy to US

Some top and busy seaports to consider when importing from Italy to US are:

· Port of Napoli

The port of Napoli is among the largest ports in Italy.

It is also one of the largest ports serving the Mediterranean region.

This, therefore, shows how busy and established the port is.

The port has many sufficient terminals that are well equipped for container handling.

With the large docks and storage, this port can suit your needs if you import larger cargo volumes.

· Port of Cagliari

This port has a large capacity of around fifty-five million tons, which adds to the list of large ports in the Mediterranean region.

This port prides itself in handling bulk cargoes, general cargo, and container goods with a large capacity.

· Port of Genoa

Genoa’s port is the busiest in Italy and covers 1,250 acres of water and over 1,700 acres of land.

With a capacity of over 57million tons per year, this port can handle any type of cargo.

· Port of La Spezia

The port of La Spezia is known for its specialization in handling containers.

It has high-end technologies and equipment to ensure smooth and fast handling of cargo.

This port can serve your needs if you are importing from inland parts of Italy because it gives you direct shipping.

Additionally, your receiving port in the US has an impact in determining the process of customs clearance, offloading and safe storage of your cargo.

The major ports in the US you can use to receive your cargo from Italy include:

• Port of Los Angeles
• Port of savannah
• Port of Seattle
• Port of long beach
• Port of New York

Airfreight from Italy to US

Airfreight is the second method you can consider for shipping your orders from Italy to US.

It is advantageous if you need products to be shipped to you in a short time.

Compared to sea freight, air freight is more considerable if your order is low volume, low weight, and value.

There is also a lot of Italy to US Air shipping service providers that you can choose from.

· Advantages of Airfreight

Like every other form of transport, Airfreight offers several benefits.

These are:

• Fast shipping – When your customers are on your neck and need delivery as soon as possible, you can use air freight.
• High reliability in terms of arrival and departure time – When it comes to scheduling operations, Airfreight offers the best.

The flights are scheduled, and once you book a space, you are confident of receiving your goods at the exact date and time unless otherwise communicated.

• Easy tracking of cargo – The use of mobile apps and online tracking systems within the aviation industry allows you to monitor your products from departure to arrival.
• Less need for warehousing – When you are using Airfreight to deliver your goods from Italy to the US, the need to warehouse your products is reduced. You can order your goods and receive them as early as two days depending on the Airfreight service you choose.

· Airport Guide when Shipping from Italy to US

When it comes to airport choice, you should consider several things.

These include how busy the airport is, its efficiency, and the number of flights operating within the transport route.

The major airports in Italy you can use to transport your goods to the US include:

• Leonardo da Vinci Fiumicino airport in Rome
• Malpensa Airport in Milan
• Venice Marco polo in Venice
• Orio al Serio in Bergamo

Before choosing an airport to use in Italy, it would also help to factor in its proximity to your supplier and flights’ availability.

When choosing an airport in the US, you should note that certain airports are specific to passenger handling.

Thus their efficiency in handling cargo may not suit your needs.

Moreover, it would be best if you chose the closest airport to where you want your goods.

Some of the major cargo airports you can use to deliver your cargo from Italy to US include:

• Los Angeles International Airport, California
• JFK International Airport, New York
• Indianapolis International Airport, Indiana
• Dallas/Fort Worth International Airport, Texas

Express Shipping from Italy to US

Express shipping is a type of expedited shipping.

It means that once the cargo reaches the shipping terminal, it must be delivered 2-3 business days.

· How Express Shipping Works

Express shipping takes place by air freight, and the emphasis is on ensuring that goods are delivered as fast as possible.

In this, shippers must book shipping space during the day.

This allows the shipping company to schedule the shipment for transportation overnight or the next day, whichever is suitable.

Express shipping is advised for very small and light packages, usually below 500kgs, as anything more than that maybe a tad too costly.

·  Benefits of Express Shipping

Express shipping provides several benefits, especially if you’re shipping goods from different suppliers in Italy.

• You get to receive your orders fast. – One of the major benefits of express shipping is that you receive your products more quickly. This way, your customers don’t have to wait longer for their orders.
• Satisfaction is guaranteed – When importing goods, you want to receive them in the best condition possible. Express shipping ensures safe delivery due to the minimal handling and speedy delivery time.
• Fewer inventories in the store – Express shipping has made it easy to directly get your products from a supplier and fulfill a customer’s order without keeping long inventories.

· Express Shipping vs. Standard Air Freight from Italy to US

The main difference between express shipping and standard Shipping from Italy to US is the delivery time.

Express shipping can deliver your products from Italy to the US on the same day.

In terms of shipping costs, standard shipping offers cost-effective shipping because no special provision is given to the product.

Because express air freight utilizes air couriers, its rates are high.

Also, on average express air freight takes from 1-3 days for products to ship.

On the other hand, with standard shipping, products take between 2-8 days to ship.

Most important is to note that standard air freight allows you to ship more volume and weight.

Express shipping is cost-effective for packages weighing 500kgs and below.

· Popular Express Shipping Companies from Italy to US

Many companies offer express shipping services from Italy to US.

The most popular of these companies are:

• Dwarka courier
• DHL
• FedEx
• UPS
• DB Schenker

These companies are all at the top of their game.

They provide top-quality express shipping services with a safety guarantee like no other.

The companies have also invested in quality and fast-tracking systems, which allow for easy monitoring of shipments.

Shipping Container from Italy to US

Shipping container involves leasing a container to carry your products from Italy to the US.

It can also imply booking container space and having your products shipped alongside other importers in the same container.

· Container Shipping Options

Container shipping is mainly identified by the type of shipping container you choose to use.

Depending on the type of goods you’re shipping, there two main types of containers to consider.

These are:

• Dry van containers – these are the typical metal containers. They are a common and versatile option widely preferred for shipping dry cargo.

These containers have a very sturdy structure.

They are watertight and weatherproof, making them safe for shipping over long distances.

Dry Van containers come in standard 20ft, 40ft, and 45ft sizes.

• Reefer Containers – These are also known as refrigerated containers. They comprise an outer metal construction and a delicately refrigerated interior.

These types of containers are used to ship perishable goods and any other that require refrigerated conditions.

· FCL vs. LCL Shipment

Apart from the options above, container shipping can be done in two ways: Full container load (FCL) Shipping or Less than Container Load (LCL) shipping.

Your choice between FCL and LCL shipping will depend mainly on your shipment volume and your budget.

With FCL shipment, you’re renting out an entire container for a single shipment. Only your goods are shipped in an FCL container booking.

FCL is effective if:

• You need your products delivered from Italy to the US on a specific date.
• You have enough products to occupy a whole container
• You are shipping delicate or high-value cargo
• You value the safety of your products and want them sealed for the entire journey

The Less Than Container Load (LCL) shipping is applicable when your products’ quantity is less and cannot fit a container.

In this case, you don’t hire the whole container but instead pay for your products’ space.

You can consider the LCL shipment  option when:

• Delivery time is not an issue
• The nature of your cargo allows sharing of a container.
• When the quantities of goods you are Shipping from Italy to US is less.
• Airfreight is not a viable option.
• You don’t want to spend extra cash on hiring a container.

Though cheap when shipping fewer goods, LCL means that other shippers’ products are consolidated in the same container.

Once they are delivered in the US, they are de-consolidated.

This means that there is a time lag before you receive your products instead ofthe FCL shipping option.

· Benefits of Container Shipping

Container shipping is widely adapted for shipping all types of products.

It offers many benefits to the shipper, which include;

• It is a secure method of shipping since it protects the goods. After selecting the products in Italy, you only break the seal on receiving them in the US.
• In a way, container shipping offers a fast means of transport at a lower cost.

The whole unit in the container is documented, and there is no need to pass every product through customs.

• Container shipping is dynamic, which means that it accepts all goods, whether large, small, dangerous, or even in batches.

Though beneficial, container shipping also has certain disadvantages that limit their usage by some shippers.

For example, if your product is irregular in shape and too large, you are limited from using a container for shipping.

Additionally, some containers may lack proper ventilation, leading to damage of certain products when Shipping from Italy to US.

· Cost of Container Shipping from Italy to US

Several factors determine the cost of shipping containers from Italy to the US.

These factors are the shipping company, the container’s size, the departure port in Italy, and the US’s arrival port.

You can use either a 20FT shipping container, 40Ft, or 45ft high cube container, depending on your product’s quantity and size.

On average, for a 20 Ft container, you will incur from $ 6,000- $7,000 depending on the mentioned factors.

On the other hand, you will incur from $12,000-$ 13,000 on a 40ft container.

High cube containers cost a little more, from $13000-$20000 depending on the carrier.

Shipping from Italy to US Customs Rules and Regulations

Like any other country, custom rules and regulations are vital.

They play a massive role in ensuring all importers abide by the set safety rules, pay custom fees, and only import allowed products.

· Shipping Requirements from Italy to US

Before settling on shipping as an option to serve your business need, you should consider looking at all the exporting and importing country requirements.

The USA is strict when it comes to importation, and all products entering the country must meet set standards, which can vary from product to product.

For instance, if you are importing steel, you first must acquire a steel license that you should apply for 60 days before the importation.

Other essential shipping requirements include;

• Import declaration – US customs require all importers to create a packing list of the goods they are bringing into the US. This ensures that you declare everything you’re importing.
• Power of Attorney-allows the transfer of liability from Customs and Border Patrol (CBP) to you, the importer.

· Prohibitions and Restrictions on Goods Shipped from Italy to US

When importing to the US, you should note that CBP officials may physically open and inspect your shipment.

Hence, you ought to know precisely what the US prohibits and restricts importation.

Remember, when your shipment contains prohibited or restricted products, customs will confiscate the cargo.

Also, you may face disciplinary action in terms of jail time, fines, or hefty penalties.

The following products are restricted for import into the US:

• Certain alcoholic beverages – you must first provide an International Special Commodities (ISC) contract to be allowed to ship them.

Additionally, you must get permission from CBP, US Food and Drug Administration (FDA), Alcohol and Tobacco Tax, and Trade Bureau (TTB) to be allowed to ship.

• Batteries – All batteries imported to the US must be shipped with positive short-circuit protection, including insulating caps.
• Electronic cigarette /vaping product – You can only ship this with a special ISC contract.
• Jewelry – Shipping of Jewelry is only allowed for a value worth less than $200.
• Seeds –You can only import seeds if you have a United States Department of Agriculture Plant Protection and Quarantine permit.

Other products are prohibited from importing to US, and you can verify with the CBP before shipping.

These products include:

• Narcotics and medicines containing prohibited substances
• Trademarked goods which are considered to be counterfeits
• Weapons and firearms (fully automatic and semi-automatic)
• Absinthe which is not thujone free
• Soil, livestock, and animal pests
• Pornographic materials

Checking with CBP for special requirements on your intended products can help save you.

Product Quality and Safety Regulations when Shipping from Italy to US

Different products shipped from Italy to the US must meet set product quality and safety standards.

Failure to which, Customs may refuse the shipment’s entry into the US on account ofcompliance breach.

Here are some regulatory requirements to consider when importing from Italy to US.

• Country of Origin mark – the C/O label is mandatory for all products imported into the US.

There is no other way around it unless you buy parts and assembled them in the US.

Then you can label them as “made in the USA.”

Otherwise, it is not allowed for foreign manufactured products.

• Textiles and Apparel – all textile and apparel products you import from Italy to US must comply fully with OTEXA textile standards.

The textiles must also have a country of origin label.

When you import textiles from Italy, make sure to provide your supplier with a digital of the OTEXA requirements.

This will help them manufacture, package, and label your products as per the requisite standards.

• Children’s products– these must comply with CPSIA and have a Children’s products Certificate (CPC).

According to CPSIA requirements, you need to ensure that all children’s products you import meet the applicable safety standards such as ASTM F983.

You should also submit samples of the products to a CPSIA accredited lab for testing, for which you will get a CP certificate.

The label should also extend to the packaging.

That is not all; CPSIA requires that you affix a permanent tracking label on each product you import into the US.

If you fail to comply with any of these requirements, US customs may seize your products.

CPSIA may also recall the products at some.

Fail to comply with one of these, and US customs can confiscate your product.

• Electronic products– the FCC regulates electronics products distributed in the United States.

It mandates all electronics imported into the country to comply with its regulations and contain an FCC mark.

There are also other standards, although voluntary that electronic imports to the US should comply with.

Examples are the UL (Underwriter Laboratories) requirements.

• Pharmaceuticals and food products– medicines, food products, and kitchen appliances must meet FDA quality and safety standards.

Please note that there are no mandatory standards areregulating every aspect of all products you import to the US.

Be that as it may, all product imports to the US must be safe.

That is, even if there are no specific standards that apply.

If your products are, for any reason, found to be unsafe, the CPSC and other regulatory agencies have the right to issue a recall.

Meaning, you’ll have to order customers to return the products and refund them.

Of course, you will not be compensated for your loss by the government or supplier.

How much it Costs to Ship from Italy to US

The cost of shipping goods from Italy to US is not cast in stone.

Certain factors determine the final shipping cost.

To calculate the shipping cost from Italy to the US, you must first factor in shipping mode.

Depending on the mode you choose, your sea freight costs will be lower than the air freight and express shipping modes.

However, the actual shipping costs vary from one port to the other and with your shipping company.

Fortunately, many shipping companies provide cost calculators that can help you determine the shipping cost.

· Factors that Determine the Cost of Shipping from Italy to US

As I have said, many factors influence the cost of shipping goods from Italy to US.

These are:

• Nature of goods – The complex handling of your goods, and the more space they occupy, the higher your shipping cost will be.

For example, bulk cargo and reefer freight cost more to ship compared to normal shipment.

• The chosen mode of transport (FCL, LCL, and Air) – In terms of transport mode, air transport will attract higher shipping costs, followed by FCL and LCL.
• Weight of the cargo – Depending on the mode of transport, weight can significantly affect shipping costs.

In Airfreight, the greater the weight, the higher the shipping cost.

This, however, is not the case in sea shipping as weight and volume are all essential in determining freight rates.

• The cargo dimension – Cargo with larger dimensions occupies more space and hence attracts a higher cost of shipping.
• Distance between origin and destination – The longer the distance covered during shipping, the higher the shipping costs.
• Type of service – If you are looking for convenience by having your products delivered to your door (The Door-to-door method), you will incur higher shipping costs. Port-to-port delivery is significantly cheaper.

How to Reduce your Shipping Cost from Italy to US

To reduce your shipping costs from Italy to US, consider the following tips.

· Have all the Required Documents

Documentation is an important aspect when Shipping from Italy to US.

You should get everything right to avoid extra expenses.

· Book Early

Many importers are venturing into the Italian market, which means that many ports and vessels are busy, leading to an upsurge in shipping costs.

Booking in advance can help you save costs and reduce delays, especially when you intend to ship during peak seasons.

· Comparing Prices of Different Shipping Companies

The first shipping company with prices seeming moderate does not mean they are the best.

You can compare the prices of different shipping companies before settling on one.

How Long it Takes to Ship Cargo from Italy to US

Shipping time from Italy to US depends highly on the shipping mode you use.

· Airfreight Shipping Time

Airfreight offers a faster shipping option but is limited to only a given type of product.

The shipping time varies from one port to the other and can even last up to 6 days.

Some of the examples of transit time in major air freight routes between Italy and the United States are:

· Ocean Freight Shipping Time

Vessel speed also influences shipping time from Italy to US.

The shipping time is also influenced by shipping FCL or LCL, with FCL shipping time being shorter.

Some examples of shipping times include;

· Express Shipping Time

The express shipping time is the shortest and is determined by when packages are delivered to the booking station.

Express shipping will take 3-8 days to deliver goods from Italy to US.

· Factors Affecting Shipping Time from Italy to US

The main factors that affect shipping time from Italy to the US include;

• Distance– the longer the distance from the loading port in Italy to the US’s delivery port, the longer the delivery time.
• Processing time– your product must undergo fulfillment in several processing points, increasing the shipping time.
• Shippi
  

Information in this guide will help you compare vessel and ship.

It covers everything, from basic definition, features, and uses among other critical aspects about vessel and ship.

So, keep reading if you want to learn more.

What is a Vessel?

Generally, a water vessel widely refers to any watercraft that navigates the water bodies.

Therefore, according to this definition, a vessel would include all such machines, from boats to large ships.

Some users also appreciate a vessel as a craft used for water transportation and usually bigger or massive than a rowboat.

In addition to this, a vessel includes large boats and ships regardless of whether they are passenger or luggage types.

What is a Vessel’s Function?

Since the term “vessel” incorporates a wide variety of specific water automobiles, consequently, the vessels do have a wide range of functions as outlined below:

Passenger Transportation

Boats, large ships, ferries, etc., are efficient water transport modes for ferrying passengers/travelers across different water bordering places or venues.

These vessels would even transport passengers across countries and even continents.

Since time immemorial, even before world war I, colonialists used to ferry slaves from the African continent to the USA via large ships.

Moreover, engineers have greatly designed and developed modern large cruiser ships to transport passengers across various countries, borders, and cities to date.

Luggage Transportation

Also, vessels offer great flexibility and reliability in the transportation and delivery of goods across long distances especially cross country delivery.

Luggage transportation amongst countries and territories has been one of the most affordable transport modes for use by importers.

Volatile goods (crude oils), weaponry, clothes, house merchandise, electronics, containers, automobiles are just some of the typical goods often transported via vessels.

Extraction and Related Activities

Some vessels are significant in deep-sea mining and extraction activities in the ocean, seas, and lakes.

Specifically, dredging vessels are efficient at extracting sand and other marine deposits from the sea beds.

That form of activity is significant in enhancing the navigability of those specific areas.

Elsewhere, some other water vessels extract different types of minerals and valuable stones from the seabed.

Those precious minerals may include diamond, copper, gold, silver, zinc, cobalt, manganese, etc.

What is a Ship in Freight Terms?

A ship is an extensive water vessel that travels the oceans, seas, and deep waterways.

This type of water vessel moves while carrying either goods or passengers connecting continents, countries, etc.

In the modern maritime universe, the ships are significant in executing specialized missions, including mining, fishing, research, and defense.

However, in the olden sail age, a ship was renowned as a vessel with three or additional rigged masts.

Nevertheless, that definition does not hold since ships’ power generation has so far been developed to incorporate other energy forms rather than the sail and wind.

What is the Difference Between a Vessel and a Ship?

As we noted earlier, a vessel is a general terminology that includes the sea-going crafts, which effectively navigate the waterways.

Vessels exist in different varieties depending majorly on sizes.

Small to medium sized vessels include boats and barges, its counterpart is the ships that are the larger type of vessels.

Therefore, we can refer to a ship as a large ocean navigating vessel that may use wind, steam power, or even other modern energy sources.

Whereas a vessel blanketly refers to any watercraft that floats which you can easily steer on its own or by use of other sources of energy.

Most prevalently, ships transport cargo majorly to earn revenue or income to the owners.

What Size is a Ship?

Ships are by far one of the largest water vessels.

They are bulky and also expansive in dimensions.

Specifically, the ship’s size dimensions depend on a few factors, including the operational route and purpose of the ship.

Moreover, the ship sizes also largely depend on the expected load-carrying capacity.

Similarly, the ships’ variation in sizes also depends on the capacity of the various harbors and ports.

Consequently, the ships exist in various types depending on dimensions.

This varieties include Panamax (427 meters long), Chinamax (360 meters long), Handymax (200 meters long), amongst others.

Nevertheless, considering all factors, a ship should weigh a minimum of 500 tonnes; anything below that cutpoint can well be considered a boat.

How is Cargo Ship Classified?

A cargo ship is a water vessel that navigates the seas, oceans, and large water bodies while transporting bulky goods and luggage from one seaport to another.

The cargo ships, commonly referred to as freighters, are responsible for all the sea freight cargo.

These cargo ships maybe classified into multiple classes according to the load types they deal in.

Below are the most common types of cargo:

Based on the Type of Cargo and Purpose;

General cargo ships; this type is a general merchandise ship that carries a wide range of general loads.

They are akin to container ships even though they do not deal in containerization.

To smoothen their operations, this type of cargo ships have inbuilt cranes that enhance their loading and offloading operations at the port.

Container ships; these types do transport freight in different sizes of ISO standard shipping containers.

Therefore, these containers have automated gantry cranes to load, unload and pack the intermodal containers inside the ships.

Undoubtedly, container ships contribute to almost half of the entire international freight transport.

Besides, they are conventionally vast and expansive, with a luggage capacity of a maximum of 19,224 TEU.

Tankers

These are particular kinds of ships that transport liquids and gases in the marine world.

Every type is perfectly designed and tailored to transport specific types of liquids.

For instance, if you transport crude oil, then a specialized crude tanker would correctly do that.

Besides, the tankers have large capacities to handle a significant amount of liquids.

The crude carriers are further grouped into Very Large Crude Carriers (VLCC) or Ultra Large crude Carriers (ULCC).

Elsewhere, if you deal in liquefied natural gases, then LNG carriers would be handy.

Bulk Carrier Ships

Bulk carriers are simply ships that deal in the bulky commodity.

They are also known as a bulk freighter.

The bulk carriers may fall into the following two distinct groups:

Dry bulk carriers; this type carries and ferry unpackaged bulky cargo consisting of grains, ore, and sugar. Etc.

Break bulkcarriers deal with packaged luggage such as cement, fertilizer, chemicals, powder, or manufactured items. Etc.

Unlike the container ships, these bulk carriers have ramps, conveyor belts, or pumps to load and unload the goods instead of the cranes.

Multi-Purpose Ships

As their name suggests, the multi-purpose ships carry and deal in a wide variety of cargo – no specific good.

This means that a single carrier may transport bulky steel, sugar, wood, paper rolls, cement, construction materials, and others.

These ships are mainly versatile and applicable for multiple purposes.

Besides, they are the most preferred carrier for many companies.

Reefer Ships

Reefer ships are another particular type that only transport commodities that have to be stored at a controlled frozen or regulated temperature.

Such freight includes perishables, vegetable produce, fish, meat, medications, etc.

Therefore, if you deal with temperature-sensitive goods, reefer ships are the best.

Based on the Sizes

The dimensional considerations of the cargo ships are length, weight, and width.

These dimensions would, in turn, affect their capability to fit in canals, pass via different water depths, or transit below bridges.

Another vital dimension of the ship is the DWT (Deadweight tonnage).

It refers to how much cargo a ship can safely carry, excluding the ship’s actual weight.

Hence, cargo ships are classified as follows:

Handymax –Smaller than 60000 DWT.

Handysize; 15000 – 35000 DWT.

Supramax; 50000 – 60000 DWT.

Panamax; 65000 – 85000 DWT. Largest sized ship to pass through Panama canal. However, its maximum weight can only be about 52,500 tons.

New Panamax; 120000 DWT.

Aframax; 120000 DWT

Suezmax; 160,000 DWT, largest sized ship that passes through the Suez canal.

Malacamax; maximum of 300,000 DWT and the largest ship that can securely pass through the Strait of Malacca.

Seawaymax; this is the most giant-sized ship that securely fit through the canal locks of st. Lawrence seaway.

They exist between 10000 to 60000 DWT.

Capesize; 150000 to 400000 DWT and passes through the Cape of Good Hope and Cape Horn.

Very Large Crude Carrier (VLCC); between 150000 – 320000 DWT.

ULCC (Ultra Large crude carrier); between 320000 to 550000 DWT.

What is the Difference Between Container and Vessel?

A container is an expansive metallic hollow box mostly used for carrying merchandise, luggage, goods, or any commodities while transiting in the water amongst ports.

The containers are especially most prevalent for ferrying goods in water transport and carried by water vessels.

On the flip side, a vessel refers to any watercraft that moves in the water while transporting goods, passengers, or other particular purposes.

A vessel effectively carries containers to aid in the packaging and shipment of the various types of cargo.

What are the Parts of a Vessel?

A vessel has got several parts.

However, all the parts are categorically classified into three most significant and general sections; the hull, navigation bridge, and engine room.

Despite that, the following are the primary parts of a vessel:

• Accommodation
• Anchor
• Bow
• Bow thrusters
• Deck
• Deck crane
• Engine room
• Forecastle
• Funnel
• Freeboard
• Keel
• Propeller
• Navigation bridge
• Rudder
• Hull
• Mast

What is Shipping Vessel Meaning?

A shipping vessel is any watercraft that specializes in navigating through the waters while transporting cargo through ports and amongst countries.

Again, these kinds of vessels are fundamental in the trade industry, whether international or local trade.

What is a Mother Vessel?

A mother vessel is a giant-sized watercraft, usually larger than a feeder vessel.

And due to their enormous sizes, the mother vessel only plies significant ports.

Besides, they have extra sizes to accommodate and carry thousands of tons of cargo, including containers.

Consequently, the mother vessels move through longer distances while transporting cargo.

What is the Capacity of a Mother Vessel?

In terms of capacity, the mother vessels have an average capacity of about 10000 (TEUs).

Currently, some vessels have a capacity of a maximum 20,000 TEUs.

Apparently, with the rising level and improvement in manufacturing technology.

It is possible that some mother vessels would soon reach 25000 TEUs.

How Does a Mother Vessel Serve?

Due to their big sizes, mother vessels would reliably and efficiently serve similarly major/ big ports.

As such, these vessels would specifically traverse main ports.

What is a Feeder Vessel?

Feeder vessels are distinctively unique in two main perspectives.

Firstly, they are relatively smaller in size compared to the mother vessels.

Secondly, similar to its name, the feeder vessels are generally slow.

How Does a Feeder Vessel Serve?

As their name suggests, the feeder vessels ply both smaller and major ports.

They do so by interlinking the cargo from smaller ports to significant ports shipped by the mother vessels for export purposes.

Similarly, they also complete cargo shipping from the major ports to smaller ports in importation cases.

What is the Difference Between the Mother Vessel and the Feeder Vessel?

Mother and feeder vessels are two worlds apart.

The three aspects of their difference focus on size, function, and capacity.

Firstly, Whereas mother vessels are vast and large, the feeder vessels are relatively small in size.

Secondly, the feeder vessels navigate through both the primary and minor ports to interlink the cargo for trade.

Finally, the mother vessels have a great capacity to store cargo upto 20000 TEUs while feeder vessels have a smaller maximum of 500 TEUs.

What is the Difference Between Ship and Steamer?

A steamer is a water vessel that navigates through the large water bodies; however, this vessel solely depends upon steam for propulsion.

So, therefore, the difference between the ship and steamer lies in the driving power.

Diesel is the most common source of energy for ships, whereas steam for the steamer.

Also, a steamer has a chimney for releasing the by-products from the engine.

Better still, a steamer is a general term that refers to a wide variety of vessels including steamboats, or steamships.

Is an Aircraft Carrier a Ship or a Boat?

An aircraft carrier is a ship, at least according to the US Navy.

According to the US Navy, every kind of commissioned surface vessel is considered a ship, from the large aircraft carriers to the tiny ones.

That is why the vessels have a pre-fix USS (United States Ship) in each of their names.

Better still, the aircraft carriers are large and, as such, are a typical sea-going airbase.

They have a ready flight deck and accessories for arming, carrying, recovering, and deploying aircraft.

Therefore an aircraft carrier is a warship.

Why is a Ship Transporting Goods Called a Vessel?

A vessel is a general term used to refer to all water-bound watercraft, and as such, a cargo ship (ship transporting goods) may well be referred to as a vessel.

What are the Different types of Tanker Ships?

We can broadly classify tanker ships into two categories, i.e., according to the goods carried and based on sizes.

According to the type of commodity:

• Oil tanker – this tanker majorly carries crude oil together with its by-products.
• Chemical carriers – this one transports chemicals and their corresponding products to different destinations.
• Liquefied gas carriers – these gas tankers carry and transports in bulk the LPG, LNG, or liquid-based chemical gases.

Some other categories of tankers include wine tankers, juice tankers, etc.

According to sizes

Based on sizes, tankers are available in the following types:

• VLCC
• ULCC
• Panamax
• Aframax
• Suezmax
• Capsize
• Handymax
• Lighters
• Handy

How Many types of Bulk Carriers are There?

A bulk carrier carries and transports a majority of dry, bulky cargo in huge quantities.

Such kinds of cargo are loose in design without any specific or pre-determined package.

The different varieties of bulk carriers include:

• Gearless bulker
• Lakers
• Tramp bulker
• Cargo liner
• Geared bulker
• Conventional bulker
• Self-discharging bulker
• BIBO

What are the Advantages of a Bulk Carrier Vessel?

Firstly, they ferry goods in bulk quantities over long distances.

Secondly, the bulk carriers can transport both dry cargoes e.g., grains, and break bulb cargo e.g., cement, timber, etc.

What are the Different Sizes of Container Ships?

Container ships can well be classified into seven basic categories, as outlined below:

Panamax

their first entry was in 1980.

They have got a capacity range of between 3001 – 5100 TEU (Twenty-foot Equivalent Units).

Their length is about 965 ft.

These dimensions were so much tailored to enable them freely pass the Panama Canal.

Suezmax

The Suezmax ships have a capacity of 12000 TEUs.

They were designed to pass via the Suez canal and have a similar size to the Suez canal; breadth of about 50-57 m.

Post-Panama

These types of containers were designed to have a substitute for the Panama Canal route.

They were most significantly cellular container vessel type.

Their capacity is about 6400 TEUs

Post Suezmax

These vessels’ dimensions are too big for the Suez canal, and so use an alternative route.

Post Suezmax vessels are the ultra-large type.

They have a capacity of about 18000 TEUs with a 60 m breadth and 21m drought.

PostMalaccamax

The post-Malaccamax have got the maximum possible draught dimension of about 21m of the Malacca Strait.

They do not dock in any random ports due to their drought size except for the Singapore and Rotterdam ports.

What are the Energy Sources for Ships?

Different kinds of Ships utilize distinct categories of energy for propulsion.

Burning fossil fuels e.g., diesel, gas oil, and heavy oil, in the engine’s combustion chamber.

Wind – the wind’s kinetic energy is capable of propelling the ship to move in its direction.

Even though the wind is a source of energy, it can only propel a small-sized vessel to be a sole energy source.

Often, most shippers use wind as a substitute energy source or as a complement to other sources.

Steam is another energy source for driving the ships; they have to be accompanied by steam engines and a chimney.

Is a Vessel the Same as a Boat?

No, a vessel is not a boat because it is a general term for describing the watercraft.

However, a boat is a water vessel, and as such, when listing the examples of vessels, we include a boat amongst others.

What are the Different Variations of a RoRo (Roll-on/ Roll-off) Ship?

A RoRo ship is a unique type of vessel with a ramp for loading and offloading cargo trailers into the shipping compartment.

To further enhance the cargo’s loading, you need a cargo trailer with wheels to drive the goods into the ship.

They further utilize several ramps for proper loading and unloading cargo.

There are a few variations of the RoRo ships, which comprises of:

Pure car carriers (PCC) and Pure Car Truck Carriers(PCTC); the former exclusively transports cars while the latter transports all kinds of vehicles.

ROPAX; This one is a Roll on/ Roll off a passenger ship.

The ship is a Ro-ro type designed for freight vehicle shipping together with passenger housing.

However, the ship is only limited to short sea transport.

Rolo – Roll on lift-off vessel.

Rolo has got ramps for accessibility by the vehicles to the vehicle decks, an additional cargo deck but restricted for accessibility by the cargo cranes.

Thus, these vessels carry both vehicles and general cargo.

ConRo– hybrid of a RORO ship and container ship.

It utilizes the compartment beneath the deck for storing vehicles whereas keeping the containers above the decks.

How Safe is a Ship?

Ships are very safe such that some researchers put the odds of perishing in a ship at 1 in 6.25 million.

From the design, manufacturing, to usage, the ships adhere to strictly laid-down rules and regulations to ensure everyone’s safety on board.

All the ships, including the cruise ships, promptly follow the US and Maritime law.

Cruise Line International Association (CLIA) maintains that an ordinary ship has to undergo more than 60 environmental, safety and health inspections every year.

Furthermore, the rapid advancement in marine technology further enhances the safety of the ships.

What is the Berthing of a Vessel?

Berthing of a vessel means mooring of a vessel like a ship at the berth whenever it is not at sea.

A berth commonly refers to a quay, pier, or wharf at which the ship comes along.

Besides, it is at this place that the sheep moor or anchors.

Berthing of a ship usually takes place at the port, bow, stem on, or starboard side.

The crew usually berths the vessel to enhance loading and unloading.

What are the Defining Differences Between Ship, Vessel, and Boats?

As we earlier noted, a vessel is a general term.

However, expansive and more complex vessels are ships, while the small and straightforward vessels are boats.

Now the main distinction comes between a boat and a ship.

And indeed, they are distinct and wide apart in meaning.

Technically, in terms of size, a ship is larger than a boat.

Moreover, ships operate and navigate the deep sea waters/ oceans while the boats are prevalent in shallow waters such as lakes or coastal regions.

Ships include tankers, cruise vessels, RoRo ships, while boats include sail vessels, paddle vessels, etc.

In terms of navigation and technology, boats are simple in design and equipment, while ships have a complex operation and drive.

Besides, boats have a little deck for cargo regarding their carrying capacity, whereas ships have a huge capacity to accommodate tonnes.

At what Point Does a Boat Become a Ship?

A boat becomes a ship whenever it meets the following expectations:

Firstly, If it increases in size to more than 197 feet (60 meters) length overall (LOA).

Secondly, incase the boat has over 500 tonnes of displacement.

Thirdly; if the boat is a commissioned surface vessel according to the US Navy regulations.

What is Chartering Vessel?

Chartering a vessel means the mutual agreement between a shipowner and a cargo owner.

This is whereby the owner, after striking a deal, rents out their ship for use in transporting the cargo.

Such kind of process, including contracts or legally binding agreements, is called a ship charter.

In this case, the shipowner becomes the legally registered entity as the ship owner, while a charterer is a hiring company.

A charter party, therefore, refers to the legal contract which binds the shipowner and a charterer.

How Do you Find out Who Owns a Shipping Vessel?

Finding a shipowner is a bit more rigorous than you can imagine – because there is no distinct register outlining all these details.

Nevertheless, you may find that vital information with your countries’ government agency in charge of maritime or vessel sails.

For example,you may find the Maritime and Coastguard Agency  (MCA) records register in the UK.

Apart from that, you may find the ownership information in your contract letter issued by the shipping company.

What are the Differences Between a Vessel and a Tank?

A vessel could be small/ simple boats or large/ complex ships carrying a wide variety of cargo and ferrying passengers between ports.

On the flip side, a tank is a large ship that ferries liquid or gas-based cargo such as LPG, crude oil, etc.

How do You Determine a Vessel Position?

Determining a vessel’s position should be relative to your actual station or location.

If you are on land (not necessarily in the vessel), then you may use the following techniques:

Use your smartphone together with the Automatic Identification System App.

However, you have to know the ship’s AIS and confirm that it is indeed broadcasting.

Use GPS automatic positioning.

Besides, you can use celestial navigation positioning.

Incase you are onshore, then you can utilize the following:

Working out the bearings of various identifiable locations, then your position becomes where the bearing line crosses.

Alternatively, you may use GPS positioning.

How Many Containers Does a Ship Hold?

The number of containers entirely depends on the ship’s size and capacity.

The capacity of container ships is measured in Twenty Equivalent Units (TEUs).

Some have low TEUs while others have higher quantities specifically, the ships capacity range from about 4000 TEUs to more than 23000 TEUs.

What Material is Used to Make the Bottom of a Ship?

Welded Bent plates are the primary material for the bottom of the ship.

The shipbuilders always have to be keen to reinforce the plates while also stiffening them as necessary.

The plates are integral for two reasons; firstly, they keep the ship bottom strong to withstand the load’s heavyweight.

Secondly, the plates enable the hull to endure outward hydrostatic pressure that acts upon it.

What is the Difference Between a Stiff Ship and a Tender Ship?

A stiff ship is steady in the waters due to its low lying center of gravity to the bottom (keel).

The center of gravity’s position is low lying because of the ship’s considerable metacentric height (GM).

Consequently, a stiff ship would quickly snap back and roll rapidly when hit by waves, which means that they are so prone to the waves’ effects.

And that would be uncomfortable to those on board.

Elsewhere, a tender ship effectively endures the waves’ effects by rolling further on and back slowly.

Therefore, tender ships are way much comfortable for passengers.

This kind of ship has its center of gravity relatively higher from the bottom,i.e, a low GM.

As a result, they are less stable.

What are the Advantages of a Stiff ship and a Tender Ship?

A stiff ship is more stable in the waters, whereas a tender ship is more comfortable to passengers on board.

As you can see, both vessel and ship play an integral role in modern water transport.

At Tj chinafreight, we help you ship all your goods easily via sea freight.

We will handle everything for you – from booking spaces in ship, customs clearance to warehousing.

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If you want to skyrocket your import business using Dropshipping agent, then this is a must-read guide for you.

It explores all the vital aspects you need to know about Dropshipping business.

Keep reading to learn more.

What Is Dropshipping Agent?

Dropshipping is defined as a retail strategy wherein the store is not obliged to store the products.

However, what happens is that the store obtains the products from a third-party supplier.

How it works is that when a client places an order on your site.

The order details are sent out to the supplier.

The supplier then delivers the product to the buyer’s address.

Note that the supplier supplying the goods to the buyer is known as a dropshipping agent.

It is imperative to ensure that you select a dropshipping agent that works in your niche.

What Does A Dropshipping Agent Do?

A dropshipping agent is a professional who helps their client to find the best products at an affordable price.

The agent also helps in product fulfillment and arrange the shipment.

Besides, the good thing about using a dropshipping agent is that it allows you have extra time to focus on other elements such as marketing.

How Does A Dropshipping Agent Work?

Basically, by using a dropshipping agent, all you need is to offer them the product details.

Once the agent receives the details, they immediately look for manufacturers who provide quality products at an affordable price.

Once you agree to the terms laid out by the dropshipping agent, you can make your payments.

Note that you will be required to pay some extra cost to cater for the service.

The good thing about using a dropshipping agent is that you do not manually send in the customer details.

For you to make the whole process easy, it is best to use a CSV file each week that contains your customer’s information.

You can also request the dropshipping agent to stock up products that are on demand.

Who Should Consider Dropshipping Agent?

People who often benefit from using a dropshipping agent are store owners.

There are store owners who enjoy managing their stores.

However, a large group of people is turning to use agents to help manage their stores.

When Should I Hire A Dropshipping Agent?

There are a few factors that will help determine if you need to hire a dropshipping agent.

Here are some of them:

1. Assess how efficient your store is. If you notice that you are spending a lot of time managing your business; as a result, you may end reducing your profit. This is because of the time you spend managing your business, you can ultimately use it in other departments.

Therefore if you have a large volume of orders, it may be of help to make use of a dropshipping agent.

It gets better as the dropshipping agent will help in product fulfilment and labeling it.

2. Assess the kind of control you wish to have over your business.

Surprisingly, making use of a dropshipping agent helps you have more control compared to managing the business by yourself.

By using a dropshipping agent, you will get an explicit command of your inventory.

Having adequate information on your inventory will offer you a good picture of the products you ought to tap into to help you get profits.

3. Do you need to improve on your customer experience- Making use of a dropshipping agent will enhance your relationship with your customers. Ideally, most clients like it when they know what is happening with their order.

The good thing about using a dropshipping agent is that they will with tracking the order.

Every order shipped by the dropshipping agent has a tracking number that you can easily track.

This action helps reduce any human errors.

This will help you become a reliable source.

Evaluating these factors will help you determine when you may need to hire a dropshipping agent.

What Are The Benefits Of Dropshipping Agent

Here are the benefits you will profit from using a dropshipping agent.

1. Take advantage of affordable prices- One primary function of a dropshipping agent is negotiating the prices.

Making use of a dropshipping agent is like buying products in bulk.

Anytime you purchase your products in bulk, you are likely to obtain a discount.

2. Making use of a dropshipping agent helps you obtain the best delivery time-In most cases; anytime you wish to ship some products, it tends to take long. On average, the shipment might take as long as two to three weeks or even more depending on your supplier.

Hence, to avoid any complaints from your clients, it is best to use a dropshipping agent.

A dropshipping agent helps ensure that the goods are delivered within a period of seven to twenty days.

Also, by using a dropshipping agent, you are certain the follow-up on your package’s information is accurate.

3. You are not limited to repackage your parcels- One element that is highly appreciated by most people from using a dropshipping agent is that they allow their clients to repackage their products.

There are various information you can add while repackaging your parcel. It includes:

• You can add your logo to the parcel.
• If the packaging was not ideal, you could decide to improve and repackage the parcel.
• You can add a promotional code to the package if need be.
• While repackaging, you can as well include a word of thanks to the client.
• Finally, if you forgot to include the instructions on how to use the product. By repackaging, it offers you the chance to include the omitted information.

There are a few shipping companies that allow repackaging of the parcel. However, if the order is in bulk, most, if not all, shipping companies do not allow it.

4. Quality control- A dropshipping agent often counter-checks to ensure that the products are of quality.

They act as a representative for you when obtaining the products from the supplier.

By using a dropshipping agent, you are confident that the products you will receive adheres to your company’s requirements.

5. Save on time and effort- By using a dropshipping agent, you are sure that you will not go through the process of finding the right supplier.

Obtaining aid from a dropshipping agent will help you have an acquired free time.

You can use the newly acquired time to focus on other elements to boost your business.

What Are The Best Items To Dropship With An Agent?

Before highlighting some of the products, you ought to dropship with your agent.

It is best to highlight some of the elements to assess that will help you choose the right product.

• Choose products that are under 10$ that are useful or beautiful.

In most cases, by choosing these products, you are certain that they will sell fast.

The items include smartphone covers, keychains, pet products, jewelry, and stuffed toys.

• Choose rare products to find- Choose rare products to find on various online shopping platforms.

In most cases, most shoppers tend to compare the prices with other online shopping platforms.

Hence it will be of benefit to have products that are hard to find.

• Pick useful products- Make sure that you choose products that most consumers will find very useful.

With these factors in mind. Here are some of the products you ought to dropship with an agent.

• Water shower filter
• Mirror alarm clock
• Magnetic charge cable
• Slime
• Neck phone holder
• Mirror lamp
• Desktop punching bag
• Wireless charger
• Electric flea comb for puppies
• Roller elliptical massager
• Legs for drones
• Organic tea
• Waterproof floating phone cases
• Portable mini air conditioner

Can I Dropship Branded Products With A Dropshipping Agent?

In most cases, dropshipping agents are not allowed to dropship branded products.

How Do I Get An Agent For Dropshipping?

There are a few methods you can use to help you find a reliable dropshipping agent.

The approaches include:

1. You can utilize the internet to search for a dropshipping agent.

This is a straightforward approach to use as you do not have to leave the comfort of your house.

Making use of the internet to look for a dropshipping agent is relatively inexpensive.

This is because all you need is a smartphone or a laptop and a working internet connection.

Ensure that you are cautious while using this method.

This is because it is relatively easy to contact a con artist.

2. Use YouTube to search for a dropshipping agent- While using YouTube, ensure that you make use of specific keywords to help you find the right dropshipping agent.

Ensure that you watch the videos for you to have a good understanding of what you are getting yourself into.

3. Utilize Alibaba- The good thing about Alibaba is you can use it to find any product or service. There is a list of dropshipping agents on Alibaba.
4. Make use of trade shows- If you wish to get in touch with a reliable dropshipping agent, then it is best to make use of trade shows.

How Do Dropshipping Agents Charge For Their Service?

It is imperative to understand that a dropshipping agent’s charges tend to range between $2 and $5 or more.

However, the total cost is often determined by the size of the order.

Also, the complexity of the order has a significant influence on the total charge.

The other factor influencing the total cost you will pay the dropshipping agent is the number of orders you have.

If the orders are quite many, you are likely to pay more compared to one whose orders are few.

Can I Lose Money Dropshipping With An Agent?

There are various ways that you can lose your money while dropshipping with an agent.

Dropshipping has a low-risk fulfillment structure; however, this does not mean that dropshipping with an agent does not have its own risks.

Here are some of the areas that you are likely to lose money when dropshipping with an agent:

1. Refunds- In most cases, dropshipping with an agent tends to take a while. This can be pretty annoying for the client who urgently needs the product. Once the product is brought to the client, most of not all will request for a refund.

The refunds will eventually eat in your profits.

2. Returns- In some cases, some clients tend to order the wrong sizes when dropshipping with an agent.

When this happens, the client will definitely request a return.

When dropshipping with an agent, you will be required to cater the returns by yourself. This will reduce your profits.

3. When using an agent to dropship your products, while the clients are placing the orders, they will only rely on the photos published on the site.

There are cases where the client might receive products that are not the same as those they saw on the site.

If this happens, the agent will not be liable for the poor quality of the products.

Instead, you will be required to cater to the returns if necessary.

4. Using an agent to dropship products has become quite a popular method that more business owners use while shipping products.

However, there are risks to it.

When using a dropshipping agent, you will be required to pay an upfront fee.

There are cases when you may pay the upfront fee, and the agent disappears with your money.

If this transpires, you will lose your money.

How Do I Negotiate Prices With A Dropshipping Agent?

There are a few guidelines you can make use of to help you negotiate the prices with a dropshipping agent.

Here are some of the guidelines:

• You should familiarize yourself with the prices set by the different dropshipping agents.

This will be of help while coming up with negotiations.

Understanding the industry’s practice will help you create a sensible offer.

• Often than not, you are likely to obtain discounts if you order in bulk.

You could share your past order records for the dropshipping agent to deem you as a serious buyer.

By buying in bulk, it will be easy for you to negotiate with your dropshipping agent.

• Negotiate outside the price- You may come across a dropshipping agent who is unwilling to lower their price range.

If this is the scenario, you may try to negotiate on other elements to help you get discounted prices.

The elements you can negotiate on are; packaging, product fulfilment, and mode of shipping.

• Talk to multiple dropshipping agents to create a bidding competition. Informing the dropshipping agent about the competitor’s quote will improve your chances of obtaining a discounted offer.

What Are POD (Print On Demand) Agents?

A print-on-demand agent offers custom orders to their clients.

This comes in handy for buyers whose clients preferred customized products.

Print on demand agents are growing in the market.

They provide a variety of products such as electronics and apparel.

Both print-on-demand agents and dropshipping agents tend to offer inventory management.

Both agents offer product supplies and deliveries for the orders placed by the clients.

It gets better as both POD agents and dropshipping agents do not require you to rent out a warehouse.

The working of a POD agent is quite similar to that of a dropshipping agent.

This is because they make it possible for clients to access international products.

What Is The Difference Between POD agent and Dropshipping Agent?

The main difference between a dropshipping agent and a POD agent is that the dropshipping agent cannot offer customized products, unlike a POD agent.

POD agents often attract businesses that need to sell apparels that have unique designs.

Dropshipping agents require the buyer to pay for their stock.

However, a print on demand agent will request you to pay for the stock only after selling it.

POD agents do not offer customer metrics; this makes it hard for you to know the customer’s needs.

This is not the same case when using a dropshipping agent as the customer metrics are available.

The profit margins with print on demand agents are relatively high compared to dropshipping agents.

How Does A Dropshipping Agent Conduct Product Quality Inspection?

Before items are shipped, the dropshipping agent conducts a product quality inspection.

The agent inspects the product to ensure that everything is functioning.

The inspection ensures that every part is intact.

Also, for products such as electronics, the dropshipping agent conducts some running tests.

The test helps ensure that the products being shipped function properly.

During the quality inspection, the dropshipping agent provides that the labelling of the products is correct.

Also, the dropshipping agent makes sure that the shipment has the right amount of orders.

Do Dropshipping Agents Have A Minimum Order (MOQ) Requirements?

There are a few dropshipping agents that have an MOQ requirement.

Some of the dropshipping agents who do not have a MOQ often request the buyer to make use of a bestselling product.

While placing the orders, the buyer ought to place an order of at least ten products.

This is a factor can work great for you as the dropshipping agent can stock up the products; this will help reduce the order processing time.

Can A Dropshipping Agent Help Me Source A Private Label Product?

Yes, a dropshipping agent can help you source a private label product.

A dropshipping agent will help you look for a factory or supplier who can quickly provide the private label product.

They will also inquire about the MOQ for you to have a more comprehensive knowledge of the company.

What Are The Considerations For A Good Dropshipping Agent?

Here are some considerations you ought to be on the lookout for while choosing a dropshipping agent:

1. Communication skills- Only settle for a dropshipping agent with excellent communication skills.

Remember how the agent performs will significantly affect the kind of reviews you will receive from your clients.

Hence to avoid frustrating your consumers, ensure that you choose a dropshipping agent with a prompt support system.

2. Ensure that the dropshipping agent has a functioning full automatic application that will help with the workflow.

Most business owners prefer using CSV files; however, CSV has a number of disadvantages to it.

For you to have an easy time managing and to track your order ensure that the agent uses an automated dropshipping application.

3. Avoid using dropshipping agents that ask for an upfront fee. This is a huge warning sign as the dropshipping agent might not be reliable.
4. Check to see if the dropshipping agent can offer private label dropshipping services.

This kind of service will come in handy because it will help increase your brand identity.

5. Ensure that the dropshipping agent understands your niche.

With this, it will be of help to pick a dropshipping agent who is familiar with your business.

This is because it will be easy for them to pick the right products that will help boost your firm.

Can I Use Dropshipping Agent Service If I Lack A Reseller’s License?

You can proceed without a reseller’s license; however, your business will not seem as legitimate.

A seller’s permit is required anytime you are dropshipping from your supplier directly to your consumer.

Most suppliers will not make a deal with the client if they do not have a seller’s permit.

This is because the reseller’s license is required to obtain a dealer account.

Also, having a seller license can be of benefit to you as you will not be required to pay taxes for every order you place with the supplier.

Who Pays For Duties And Taxes If I am Dropshipping With An Agent?

There are various factors that influence who pays the duties and taxes when dropshipping with an agent.

These factors include the three parties’ location; this is because different states tend to have dissimilar rules on who ought to pay when dropshipping.

The taxability of the goods; remember that all goods have their own taxing rules.

Finally, the last factor affecting on who pays the taxes is where the supplier and the seller has nexus.

Note that often than not, the clients pay the sales tax to the seller.

Do Dropshipping Agents Take Liability Of Goods During Dropshipping?

In most cases, dropshipping agents do not take the liability of goods during dropshipping.

This is why it is best to purchase a dropshipping insurance cover, as it will come in handy if the goods get ruined.

What Are The Risks Of Working With A Dropshipping Agent?

There are a few risks you are likely to encounter from using a dropshipping agent. They include:

Less Control

One big risk of using a dropshipping agent is that other firms will take control of your business supply chain.

Therefore, your business’s survival is in the hand of other companies who may care less about your business.

In most scenarios, you will not have control over the product’s quality being brought into your business.

Therefore to ensure that you do not have any regrets, ensure that you work with a trustworthy dropshipping agent.

Reliance on other People’s Stock

One perk of using a dropshipping agent is that it allows you to offer new products.

However, the downside to this perk is that if the supplier runs out of stock, the dropshipping agent will have nothing to offer you.

This may make you lose clients or have a longer lead time.

Poor Customer Service

If the supplier fails to deliver the right goods, the blame will be on you.

The risk of using a dropshipping agent is that you will not have a bond with the supplier.

Also, you will not have the chance to quickly solve any customer issues as you do not have the inventory at hand.

Do Dropshipping Agents Offer Warehouse Services?

Yes, dropshipping agents offer warehouse service.

This is a benefit for businesses that buy products in bulk as they do not have to go through the bother of searching for a warehouse.

How Long Does A Dropshipping Agent Need To Process My Order?

Note that processing time starts when a fulfillment request is received to when the client obtains a tracking number.

In most cases, dropshipping agents tend to take between two to three days.

Understand that if the processing time is longer, the order might take longer to get to the client.

Can Dropshipping Agents Recommend Best Selling Products?

Yes, a dropshipping agent is allowed to recommend best-selling products to their clients.

Do Dropshipping Agents Offer Branding And Customizing Service?

Yes, a dropshipping agent can help with branding and customization services.

If you need this kind of service, it is imperative for you to communicate in advance.

All you are neccesitated to do is send in the designs, and they will take care of the rest.

How Does Dropshipping Agent vs. Sourcing Agent vs. Purchasing Agent Compare?

A dropshipping agent who helps their client sourcing a product, quality inspection, warehousing services, branded packaging, labeling, and order fulfillment.

A sourcing agent is a professional who helps locate sources of products and supplies at a low price.

A purchasing agent is a professional who offers to buy goods or property on behalf of their client.

The main difference between a dropshipping agent, a sourcing agent, and a purchasing agent is in their roles.

Both purchasing agent and a sourcing agent do not offer warehouse, packaging, labeling, and order fulfillment, unlike a dropshipping agent.

The huge similarity is that the three agents help in the negotiation of prices.

The agents also help in locating products for their clients.

However, a dropshipping agent has responsibilities they offer to their clients.

Do Dropshipping Agents Ship Internationally?

Yes, dropshipping agents ship internationally.

However, this element varies with the agent.

Hence it would best to check if they offer such a service before setting a contract with them.

Are Dropshipping Agents Middlemen In International Trade?

A middleman is an individual who buys goods from manufacturers and sells them to a retailer or a consumer.

In international trade, a dropshipping agent can act as a middleman.

This is because the dropshipping agent will help you access a reliable manufacturer who has attractive rates.

Always ensure that you make use of a reliable dropshipping agent.

This is because their reliability will come in handy while interacting with the international manufacturer.

A reliable dropshipping agent will only buy quality goods from a reputable manufacturer.

Is There An Alternative To Having A Dropshipping Agent?

There are a few options you can use as an alternative to using a dropshipping agent.

They include:

Using Tools that can Help Automate your Dropshipping

The good thing about using this approach is that it is an efficient method.

For the reason that you have control over the tool.

Simply you have the power to filter out what you do not need.

Moreover, it is quite easy to find the best-selling products.

More or less, the tools perform the same functions as the dropshipping agent.

For the reason, once the order is placed, a tracking number is automatically sent to your client.

Using Aliexpress for Dropshipping

Unlike other marketplaces, Aliexpress has a unique structure that helps support dropshipping.

It is quite easy to locate the products you need and directly converse with the supplier.

The downside of making use of these alternatives is that you may end up using a lot of time trying to find a reliable supplier.

This, however, is not the case when using a dropshipping agent as they take care of everything.

What Is A Blind Dropshipping Agent?

This is a kind of dropshipping where the shipment is sent directly to the customer.

However, in blind dropshipping, the customer is not aware of the supplier’s identity.

How it works is that once the customer places the order, you pay directly to the wholesaler, who later sends the parcel from the warehouse.

Ideally, the blind dropshipping agent will use a special type of dropship packaging.

Most business owners delight in using this approach as it protects the interest of your business.

Also, blind dropshipping provides faster transit times.

This can work in your favor as clients will deem your business as a reliable one.

One major downside of using a blind dropshipping agent is that you have little control over the freight shipping rates.

This, therefore, denotes that you will have to charge your customers extra charges to cater to the shipping fees.

The other downside of using a blind dropshipping agent is that you have no control over your products.

Therefore the customer may receive damaged products, or they may have missing components.

This may, in turn, ruin your brand.

The other disadvantage of using blind dropshipping is that the process is quite complicated; this, in turn, may result in a longer shipping time.

Do Dropshipping Agents Offer Credit?

Most dropshipping agents do not offer credit.

This is because most dropshipping agents tend to have a monthly subscription.

Additionally, when dropshipping, the suppliers will require your credit information for them to process your information.

The good thing about using a dropshipping agent is that their prices are quite favorable.

Hence you are certain that buying from them will save you on cost.

What Are The Basic Steps A Dropshipping Agent Takes To Get Packages Through Customs?

Here are the steps that a dropshipping agent takes to get packages through the customs:

• The custom officer will go through the paperwork presented by the dropshipping agent- Note that if the shipment is International, the agent ought to present a commercial invoice.

The document contains the information of both the supplier and the receiver.

The document also holds the description of the parcel and its value.

• The next step is the customs officer will check if any taxes or duties apply to the parcel.

Note that this will depend on various factors such as the law of the importing country.

Also, the value of th

In this guide, you will find all information you’re looking for about container yard cutoff.

Remember, knowing these freight terms will help you save both cost and time when importing from China.

So, keep reading to learn more.

What does CY (Container Yard) Cutoff mean?

A Container Yard (CY) is a holding place for shipping containers on the dry land or terminal before they are offloaded or loaded on a ship or vessel.

CY cutoff or closing time is the set date by which a container has to be checked-in in the CY before sailing.

Who determines CY Cutoff?

CY cutoff is usually determined by the carrier or freight forwarder.

When is CY Cutoff?

Mostly, the Cutoff is set two days before the set sailing date.

However, CY Cutoff varies depending on terminal or port and can be anywhere between 3-5 days.

What is the Difference between CY Cutoff and CFS Cutoff?

Importantly, CY is ultimately used for Full Container Load Shipment (FCL).

On the other hand, Container Freight Station (CFS) is primarily used for consolidation and deconsolidation of Less than Container Load (LCL) shipments.

Notably, from the CFS, the cargo moves to the CY.

Below are some significant differences between the two cutoffs:

What is Si Cutoff?

Shipping Instructions (SI) is the documentation issued to the carrier by a shipper, highlighting a cargo’s details and transportation requirements.

Therefore, SI Cutoff is the deadline for a customer to issue the mentioned documentation to the carrier.

Mostly, an SI contains:

• Shipper
• Consignee
• Booking Number
• Port of Loading
• Port of Destination
• Container and Seal Number
• Packaging type and Number of Packages
• Weight/Volume
• Payment terms for Freight
• Place of Payment
• Cargo Description

What is the relationship between Si Cutoff and CY Cutoff?

SI is essential for the documentation and submission of a shipment’s manifest.

Consequently, timely submission of SI (before SI Cutoff) will enable your shipment to meet the CY Cutoff.

On the other hand, delayed submission of SI will translate to your shipment not having adequate documentation.

As a result, the merchandise won’t meet the CY Cutoff.

Notably, the SI is used during the booking. Without booking, you will not be able to ship your container leave alone meet the CY Cutoff.

What is the importance of CY Cutoff in shipping?

CY Cutoff ensures strict adherence to the shipping schedule. Shipping of goods is an intermodal affair.

Hence, the shipping schedule should be upheld.

Any deviation from the shipping schedule may result in the complete disruption of the shipping process.

For this reason, CY Cutoff closes out any containers that do not meet the deadline to prevent any delays in shipping.

Also, CY Cutoff enhances operational efficiency.

As an importer, you will know when your cargo is due to be shipped.

Consequently, you will arrange the transport means you will use to pick your shipment from the port/terminal to your preferred warehouse.

How does knowing CY Cutoff benefit my Business?

As an exporter, knowing the CY Cutoff will guide you on when to provide the SI.

The SI will is used in preparing a Bill of Lading, which is an essential document in shipping.

Ultimately, the manifestation and shipping of the merchandise will also be done on time.

This will boost your customer’s confidence. Consequently, you will end up having extended transactions with the customer.

Besides, knowing CY Cutoff will save your exporting business from unplanned costs.

When your shipment is within the shipping schedule, there will be operational efficiency.

This, in turn, eliminates any expenses that may result due to delayed shipping.

How does CY Cutoff Factor in Transit Time Calculations?

Generally, transit time is the time it will take to move your cargo from the point of origin to the point of destination.

Since CY Cutoff determines which container will be loaded on the carrier vessel, it will affect the transit time.

Take an example of a cargo is set to be shipped from point A to point B on 1^st January 2021.

The transit time is 30 days. Therefore, its expected arrival date is 31^st January 2021.

However, the CY Cutoff date is 2^nd January 2021.

Meaning, the cargo will not be loaded on the vessel until the cutoff date lapses.

Hence, resulting in a late departure from the point of origin.

Significantly, you should set CY Cutoff to be around two days before shipping when calculating transit time.

As a result, you will get the Expected Arrival Time (EAT).

Which Service Loops do I need for CY Cutoff?

The service loops you will need for CY Cutoff will depend majorly on your merchandise’s availability and readiness.

How do I choose Service Loops for Container Yard Cutoff?

Observe the following when choosing Service loops:

• Ensure that the CY Cutoff is in line with the time you plan to ship
• Establish when your merchandise will be ready for shipping
• Consider all the various Service loops and choose the most cost-effective

Are there Circumstances under which Container Yards may accept Containers past Cutoff?

Most shippers are strict on the CY Cutoff dates set since there is a shipping schedule.

Any disruptions on the schedule have a lot of negatives on the shipping company.

As a result, most Container Yards will reject containers delivered past Cutoff.

However, your container may be let into the Container Yard, depending on your forwarder.

If, for example, you informed the forwarder that you will be running late due to unforeseen circumstances.

It will be ethical for the forwarder to give you some grace period.

What happens when I deliver Shipments past CY Cutoff?

Unfortunately, your shipment will not be loaded on the planned vessel.

Consequently, your shipment may have to wait for the next shipping.

The waiting period may last for over a week.

In the worst-case scenario, your shipment may be rejected altogether.

But here is the good news, your container can be accepted in specific scenarios.

Say there was traffic on the way to the port, or even loading the container was hectic.

All you need to do is call the forwarder and explain the ‘unavoidable circumstance.’

However, this is not a guarantee that the forwarder will be lenient.

What is Incoterms Relation to CY Cutoff?

Incoterms spell out where the transfer of liability occurs between the seller (exporter) and the buyer (importer).

Most incoterms are used to oblige the seller to deliver the merchandise to the CY in time.

The seller is preferred since the CY is within his/her locality.

However, in incoterms like EXW or FCA, either the buyer or the seller is responsible for meeting the CY Cutoff.

Knowing and understanding the incoterm used in a trade will help define who is liable if the merchandise does not meet the CY Cutoff.

Who bears Liability when Containers are delivered past CY Cutoff?

Depending on the incoterm used, either the buyer or seller can bear the liability for delivery past the CY Cutoff.

Notably, in a case where the buyer sought a shipper’s services, the liability can be transferred to the shipper.

How do I know CY Cutoff date and time?

Most if not all of the terminals post their CY Cutoff date and time on their website.

Hence, you can easily access and know the Cutoff date and time of the terminal you intend to use.

Alternatively, you can directly contact a terminal and request their CY Cutoff date and time.

Also, you can make a shipping booking.

When the forwarder confirms the booking, you will receive a letter with the CY Cutoff date and time.

Do Carriers extend CY Cutoff during Peak Seasons?

Although most carriers will not extend their CY Cutoff during peak seasons, they can accept your shipment after the deadline.

However, your shipment will be considered for the next sailing.

Logically, extending the CY Cutoff will do more harm than good.

Since large numbers of shipments characterize peak Season, an extension will only worsen the situation.

How do I make CY Cutoff when shipping during Peak Season?

Early and fast preparation is vital. Ensure you have all the documentation needed.

Check that your cargo is compliant with all the necessary regulations.

Also, hire the services of a reliable shipper.

Ensure that the shipper knows how to navigate through the peak season.

Consequently, your shipment will be delivered on time to the Container Yard.

Notably, an experienced shipper is a guarantee that your shipment will arrive before the CY Cutoff.

Can I Deliver Containers Too Early before the CY Cutoff Date?

In this scenario, forget about the early bird catching the worm.

Early might turn out to be more costly to you.

You may end up incurring demurrage charges and port storage charges.

Port storage charge is the amount you will pay when your container exceeds the port’s free storage days.

On theother hand, demurrage charges is the fee you will pay for the extended use, past the free period, of a shipping line’s container.

As a result, a too-early-delivery will not be advisable.

If you plan an early delivery to the container yard, ensure you are within the free period issued by the port and/or the container provider.

However, if you own a container, you need not worry about demurrage costs.

Is it Advisable to Book shipping weeks before CY Cutoff?

Before you can know the CY Cutoff, you first have to make a booking.

When the forwarder confirms the booking, you will be informed of the CY Cutoff in the confirmation letter.

However, most forwarders provide the CY Cutoff for various shipping lines.

Thus, there is no need for booking first.

You can directly check the CY Cutoff date.

Assuming you know the CY Cutoff, you should preferably make an early booking for shipping.

Thus, you will have ample time to put your shipment’s requirements in order.

Consequently, you will be able to deliver your shipment before the CY Cutoff.

However, when you make an early booking and change your mind, the terminal may charge you a booking cancellation fee.

What happens if the CY Cutoff date on my booking does not match the Cutoff date on either the Terminal or Carriers website?

The CY Cutoff date on the website might be outdated.

You should preferably use the one for the booking.

Nevertheless, do not leave anything to chance.

You can contact the forwarder or carrier to understand the reason for the contradiction better.

From there, you will be advised on the best course of action.

How do I ensure Timely Container Delivery to CY?

If you plan to make the delivery on D-Day, you should know the route to the CY.

Although it sounds insignificant, it can cost you.

Say, for example, the route to the CY usually is full of traffic; leaving the warehouse early will be advisable.

Also, ensure that your shipment is loaded in the container in time.

Avoid the last-minute-rush of loading the container on the CY Cutoff date.

You may complete the loading process after the deadline has elapsed.

Putting the shipment’s documentation in order will also come in handy.

With everything in order, you will deliver your container to the Container Yard in time.

Lastly, hire the services of an experienced shipping company.

They will work hand in hand with you to ensure timely delivery of the container to the CY.

Going all solo in the shipping business may be a hard nut to crack.

Can a Delay in Container Delivery to CY Affect Export Clearance?

Yes, containers are mostly handled on a first-come, first-serve basis.

When you deliver your container late to the CY, it may be rejected, halting the process of Export clearance.

However, if it is accepted, you may be unlucky to find that it’s well past Export customs officers’ working hours.

CY cutoff dates and times are set considering all the processes the cargo has to go through before loading.

Export clearance is among these processes.

Any breach of the set dates and times means interference with a process resulting in operational inefficiency.

At Tj chinafreight, we  provide a cost effective shipping solution from China to cny global destination.

Contact us today for a cost effective freight forwarding solution.

Singapore is a growing economic hub located in south-east Asia and offers numerous products to ship, whether for personal use or business in the US.

However, Shipping from Singapore to US can be complicated due to the many terminologies and strict restrictions enforced.

Fortunately, this guide covers everything you need to know about Shipping from Singapore to US.

Cheapest Way to Ship from Singapore to US

Four modes are available for shipping goods from Singapore to US: FCL, LCL, Air freight, and Express freight.

Each of these modes has its pros and cons, so it would be wise to consider each mode’s factors before making a choice.

FCL Sea Freight

Full Container Load (FCL) means that you hire a container and have your products shipped in them.

It is designated for large volume shipments.

Most carriers argue that shipments don’t necessarily have to be bulky enough to fill an entire container.

As long as a shipper can afford the cost of renting an entire container for shipping, they can book FCL Shipment.

In other words, your products must not necessarily fill the container to ship under FCL Sea Freight.

You should consider FCL Shipment when you need top safety for your products.

In this case, once an FCL shipment is packed and seal, it is not opened until the container arrives in the US.

This is unless US Customs find it necessary to break open the container for inspection.

Note that FCL is cheap if your products fill more than 75% of the container.

LCL Sea Freight

With the Less than Container Load mode, your products and other shippers’ products are loaded on the same container for shipping.

Under this mode of shipping, you only pay the container fee according to the space your products occupy.

Compared to FCL shipping, LCL Shipping is cheap when your cargo is too small to fill a standard shipping container.

It is also considered when you don’t have a tight delivery schedule as an LCL shipment takes more time to deliver to the destination.

This time lag is due to the shipment’s consolidation at the loading port and deconsolidation at the destination port.

These processes take a considerable amount of time.

Air Freight

Airfreight from Singapore takes a shorter time as compared to sea shipping.

However, the shipping cost is high, sometimes even three times that of sea shipping.

Shipping by Air is convenient if you import small quantities and require faster delivery.

Airfreight charges from Singapore to the US vary depending on the shipping and the weight of goods you’re shipping.

Express Shipping

Express shipping, which is a faster form of Air shipping, is another mode you can consider.

As the name suggests, it is faster, more express, to put it simply.

You can receive express shipments at your US destination within three days after ordering in Singapore.

This form of delivery is carried out by Courier Services and is the best when you’re operating under tight delivery schedules.

It is also a suitable form of shipping when you need to transport shipping documents and samples quickly.

When it comes to the cost of shipping via express means, you should brace yourself to pay relatively higher charges.

Express shipping rates from Singapore to US for a 50kg load per sq. meter starts from $800.

Generally, if you’re shipping cargo whose weight is below 100kg to the US, express shipping becomes a cheaper option and saves you on shipping lead time.

Prohibited Items when Shipping from Singapore to the US

Shipping to the US can be tricky because of the many restrictions on what you can and cannot ship.

To be safe, you should verify with the US Customs and Border Patrol (CBP) to better understand the restrictions and prohibitions.

Some of the products the US prohibits you from shipping from Singapore to US include;

• Tobacco products
• Alcoholic beverages
• Dog and Cat fur
• Drug Paraphernalia unless under a special certification
• Fruits and vegetables- you can only ship after declaring with the port of entry before shipping.
• Soil
• Certain food products such as bushmeat.

Some of these listed products require authorization before shipping to the US.

You can get full details from the CBP website on how to treat their shipping.

How much it Costs to Ship from Singapore to US

Shipping cost from Singapore to the US varies depending on the carrier, size and weight of the cargo, and the shipping distance.

Container Shipping Rates from Singapore to the US

The FCL freight charge usually depends on the delivery Port in the US and varies depending on the container’s size.

For a 20-foot container, your FCL shipping cost will range from $1200-$2500.

On the other hand, if your shipping container is a 40-foot container, the shipping prices will be slightly higher and range from $1776 to $3000.

It would help research the rates applicable to more than one carrier to cut shipping costs.

LCL Shipping Rates from Singapore to the US

We have already mentioned that the LCL is applicable when your goods cannot fit one container and plan to save costs.

The shipping rates for an LCL load from the US to Singapore range from $950- $1100 for a load of 200kg/1cbm.

The cheapest route is from Singapore to Los Angeles.

Air Freight Rates from Singapore to the US

The air freight rate for shipping from Singapore to the US varies with the shipment’s average weight.

For door-door shipping from Singapore to the US, the rate ranges from $1700 to $1950.

The more your shipment weight increases, the lower your shipping rates per Kg.

Express shipping Rates from Singapore to the US

Like the other shipping ways, the cost of express shipping also varies from port to port and the shipments’ weight.

The mode of delivery will also influence your express shipping rates.

For instance, door-to-door delivery costs more than that port to port or even port to door delivery.

The average price for express shipping is $800 per 50kg/0.2cbm.

Factors that go into the Cost of Shipping from Singapore to the US

The shipping cost from Singapore to the US is affected by numerous factors such as size, type of product, distance, and shipping mode.

Before settling on any particular shipping method, you should consider your business needs.

Some of the shipping methods are cheap but take longer.

Location

Locations influence the distance from Singapore to the US.

The longer the distance, the higher the shipping costs.

Always ensure the sourcing and delivery location is convenient to your needs and attract affordable shipping costs.

Shipment Size

Shipment size has the most significant impact on your shipping cost.

The larger the shipment size, the higher the shipping costs.

You should use proper packaging to avoid inflating your shipping costs.

Opt to use smaller and lighter packaging to avoid unnecessary weight and volume.

You can also stock several package sizes and use one single consolidated packaging system to reduce your shipping costs.

Shipping Mode

Shipping mode means either using express shipping, air freight, or sea shipping.

There is also the option of door-to-door delivery, port-to-port, and port-to-door and door-to-port delivery modes.

Each of these modes attracts a different cost than the other.

Door-to-door is generally costlier than all the other modes of shipping, while port-to-port is the cheapest.

Whether you’re shipping reefer cargo, bulk cargo, or out of gauge cargo, etc., may also influence your shipping cost.

The more special care and handling procedures your shipment, the higher you pay for shipping and vice versa.

While choosing your shipping mode, remember to factor in your business needs and the cost before choosing a shipping mode.

Shipping from Singapore to USA Time

Shipping time from Singapore to US varies significantly depending on the method of shipping you use.

Sea Freight Shipping Time from Singapore to the US

The sea freight shipping time to the US is the longest and ranges from 25-40 days from FCL.

For LCL, the shipping time is longer due to consolidation and deconsolidation.

Some of the typical shipping durations are;

Air Freight Shipping Time from Singapore to the US

The distance between Singapore and the US is approximately 14 000km, and the shipping time ranging between 5-8 days.

Depending on the airport in the US, some practical shipping times are:

 

Express Shipping Time from Singapore to US

Express shipping from Singapore to US is the fastest.

It takes an average of 1-4 days.

The exact shipping will depend on when you avail your goods for shipping and the exact shipping location in the US.

Cheapest Time to Ship from Singapore to US

Shipping rates from Singapore to the US are greatly affected by seasons.

There are times when freight rates are lower, and there are times, a few times in a year when these rates spike so much.

Usually, the freight rates tend to spike due to a change in seasons.

In particular, peak seasons tend to see an immense rise in shipping rates and other shipping challenges due to increased demand.

Peak Seasons when Shipping from Singapore to the US

Like other businesses, shipping has high seasons when everyone is rushing to deliver their goods to warehouses.

When shipping from Singapore to the US, the main peak season is between mid-August and mid-October.

During the peak season, the shipping rates rise caused by the vast shipping demands.

Getting containers at such times is difficult, and this can significantly affect your business.

What Causes Peak Season?

Peak seasons are caused by high market anticipation and fear of holidays ruining the shipping process.

Also, peak seasons are caused by the back-to-school rush and black Fridays when most people make massive last-minute purchases.

How to Beat Peak Season Prices and Traffic

Peak seasons imply that getting a shipping vessel from Singapore to the US is difficult.

Also, the US demand will be high, and meeting them will be difficult due to a lack of inventories.

However, implementing several strategies can help you bet peak season and remain a valuable supplier to your customers.

To beat peak seasons when shipping from Singapore to US, you can:

Split Shipments

During peak season, the number one strategy is shipping what you can and when you can.

This means that if you are shipping a large consignment, you can split them into multiple bills of lading depending on the agency.

Essentially, this means that if you have three containers, you use three bills of lading and not separating the container’s content.

Also, you can split your products to use different modes of shipping.

Here, you can have some products shipped by air freight and the rest by sea freight.

Use a Reliable Freight Forwarder

Freight forwarders play an unmatched role when it comes to shipping your goods from Singapore to the US.

The nature of forwarding dictates that freight forwarders sign contracts with shipping companies.

So, anytime the forwarder has products to ship from Singapore to the US, they get priority booking in the vessel.

Therefore, choosing a reliable freight forwarder will save you the hustle of finding a shipping slot.

Opting for Slower Shipping Methods

During peak season, the demand is high, and many consumers are willing to meet the high costs of products.

This means that shippers opt for faster delivery methods which are expensive but can deliver their goods on time.

With good planning ahead, you can use slower shipping methods and shipping companies with a lower reputation.

Use Insurance

Insurance is important when shipping from Singapore to the US during peak seasons.

Remember, many people are shipping, and instances of theft and mishandling of cargos due to the rush is high.

To be safe, always ensure that once shipping prices start rising, an indication of peak season, your goods have insurance coverage.

Doing marketing research at this point can help you identify specific goods that your customer requires to avoid delivery delays.

Prioritize what you Ship during Peak Seasons

Not all the products you ship during peak seasons will attract a market.

Some products are consumed during specific times, not necessarily during peak seasons.

You can prioritize your shipping by informing your freight forwarder which container requires faster shipping.

Furthermore, the difference is never significant, and you can still make substantive profits from your products.

Incoterms when Shipping from Singapore to the US

Who pays for shipping costs is part of the international shipping agreements.

Determining who pays, the buyer or seller is based on Incoterms.

Incoterms 2020 provides the latest interpretations of who should pay for the freight on each term.

What are Incoterms?

Hardly will you mention shipping from Singapore to the US without mentioning incoterms.

Incoterms are internationally recognized rules which define the responsibility of the seller and the buyer.

The terms vary from one shipping method to the other, with some specific to a given mode of shipping.

Best Incoterms to use when Shipping from Singapore to the US

The choice of incoterm depends on the total cost you will incur to have your goods delivered from Singapore to the US.

Before settling on an incoterm, you should factor in the supplier’s responsibility and the overall cost you will incur.

When shipping from Singapore to the US, some of the best incoterms you can use are:

Free on Board (FOB)

This is one of the best incoterms to use when shipping from Singapore to the US.

FOB means that your supplier will deliver goods at the port in Singapore and clear all necessary clearance.

You will then hire the services of a freight forwarder to help ship your goods to the US.

Under FOB shipping, you have full transparency of how your goods move, allowing you to effectively plan your delivery schedules.

Ex Works (EXW)

Under the EXW incoterm, your supplier will avail goods at their warehouse, where you will arrange their peaking and shipping.

Though a good incoterm in terms of offering transparency in the shipping process, it is not easy for first-time importers.

If you opt for EXW incoterms, you are responsible for export and import clearance.

Meaning, you must be familiar with the export country laws to ensure smooth shipping.

Otherwise, you’ll have to consider hiring a Customs broker.

Delivered at Place (DAP)

If you fear all the customs clearance and the many overwhelming shipping processes, you should settle on DAP incoterm.

DAP shipping involves having your supplier deliver the goods up to the set destination.

The only worry with DAP is that you will have minimal control of the shipping process.

How Incoterms Affect Freight Prices from Singapore to US

Incoterms dictate the duties of the supplier and the buyer. They define who is responsible for the shipping costs.

When shipping from Singapore, depending on the incoterm you use, your supplier will quote prices that include the incoterm.

You can ask your supplier to quote prices without including incoterms and after including them to help determine a cheaper option.

Essentially, incoterms either increase or reduce the freight prices.

Shipping from Singapore to US Covid Effects

The rise and increase in the number of Covid 19 have had significant impacts on the shipping industry.

Your shipment from Singapore will undoubtedly be affected by the pandemic.

Business is not as usual, and you will have to readjust.

Here are some of the impacts covid 19 will have on your shipping.

High Cost of Goods in Singapore

With the many government restrictions and decongestion of crowds, Singapore’s workforce is not as it used to be.

Suppliers have had to retrench a good number of their employees, sometimes by even a half.

This means that the production is low and satisfying the demand high.

Nevertheless, you can conquer this by resorting to other suppliers or making prompt arrangements.

Shipping Rates are High

The number of sea vessels and flights has reduced dramatically due to the covid 19 pandemic.

Many companies have reduced their working force and the few flights available charge even twice the standard shipping rates.

If you are shipping from Singapore during this period, you might consider weighing all the costs before deciding to continue shipping to the US.

Increased Shipping Time

With the few available shipping vessels, the implication is that getting a shipping space is difficult, and you will have to fight for it or sometimes wait.

The CBP imposed rules in the US ports imply a change of clearance strategy, thus significantly impacting your shipping.

To beat the effects resulting from covid 19, you can hire a reputable freight forwarder to help you navigate the hurdles.

You can also plan your shipping and communicate with your customers when you expect a delay.

Customs Duties and Taxes when Shipping from Singapore to the US

Knowing the basic USA customs clearance is important for all persons shipping from Singapore to US.

Here are the pertinent issues you should know about customs clearance when shipping from Singapore to US.

Applicable Customs Duties and Taxes when Shipping from Singapore to the US

All products whose FOB value exceeds $800 shipped from Singapore to the US must pay customs duties and taxes.

To determine the applicable customs duty, you calculate your products’ FOB value and calculate the applicable duty based on the set rate.

Additionally, your imports to the US attract a Merchandise Processing Fee (MPF).

The MPF is an AdValorem value with minimum and maximum set limits.

Customs Clearance Procedure when Shipping from Singapore to the US

Your products must clear at the US customs before being released.

The clearing process involves a lot of paperwork and sometimes quality checks by the CBP.

CBP requires proper documentation and payment of the applicable customs duties and taxes to release your products.

The first part of customs clearance involves settling the customs clearance fee.

This includes costs to the customs broker or the freight forwarder.

Payment of the customs duties and taxes directly to the customs authority follows.

Note that the time taken for customs clearance depends on several things.

They include the nature of your products, provision of proper documents, and the customs broker you are using.

To swiftly handle customs clearance for your products from Singapore to the US, you need to hire a capable customs broker.

Hiring a Customs Broker

Customs brokers specialize in handling customs clearance by forwarding the necessary documents.

They ensure no delays that may lead to extra costs in the process of clearing with customs.

You need to hire a reputable customs broker.

In this case, your best bet is the freight forwarder that helped you ship your products from Singapore to the US.

Nevertheless, you can hire an independent customs broker different from the freight forwarder.

However, this option is risky because your freight forwarder won’t be responsible once mistakes arise.

Freight Insurance when Shipping from Singapore to the US

When shipping from Singapore to the US, your cargo passes through many hands.

This starts from the loading process, the many risks while shipping, and even the offloading port.

Your shipment is at increased risk, and if anything happens, you can suffer huge financial losses.

Settling for separate marine cargo insurance, other than the carrier’s insurance, can save you in case of loss or damage to your products.

The advantage of this type of insurance is that it will only cost you a fraction of the total shipping costs.

Also, the market is pretty soft now, which makes it ideal for shopping rates and comparing marine cargo insurance providers.

If you already have an annual goods insurance policy, then your rates should be dropping.

Additionally, if you insure shipment by shipment, your charges should be dropping too.

The bottom line is that it doesn’t matter what type of policy you take.

As long you procure coverage for your goods when shipping from Singapore to US, you are safe.

If you want to get the best cargo insurance coverage with affordable premium rates, it is best to approach general-purpose companies for quotes.

You can ask for referrals or recommendations from your shipping agent, supplier, or other reputable business that use this service.

Remember, though, that Cargo insurance is mostly a specialist area.

Therefore, if you need to obtain coverage for your goods, find an expert.

To guarantee a competitive deal, we advise that you work with your freight forwarding expert instead of an insurance broker.

A forwarding agent can deal directly with underwriters hence, gaining lower rates that they then pass on to you.

With a simple click on the internet, you can get your cargo insurance quote.

You can even fill out the order form, submit it, and get coverage for your shipment value.

Your agent can even generate your insurance certificate online, and all you have to do is print and have it ready for when necessary.

Documents you’ll need to ship from Singapore to the US.

Documents play an important role both during shipping and during customs clearance.

Proper import documentation ensures hastened shipping and faster clearance at the US ports.

The major documents you need when shipping from Singapore to the US include:

• Bills of lading
• Packing list
• Certificate of origin
• Commercial invoice
• Letter of credit
• Shipping quote

Depending on your cargo, other documents might come in handy.

You should verify with your freight forwarder or the CBP before shipping.

How to Prepare Shipping Paperwork

Your shipping paperwork is important, and if you are shipping through a freight forwarder, they can help handle everything.

Nonetheless, your shipping paperwork will depend on your supplier and the CBP regulations on clearance.

When shipping from Singapore, your supplier can either send you a digital copy or a manual copy.

All are applicable and can help you save the whole strain of having your goods held sometime before release by the CBP.

How to Ship from Singapore to Amazon US

Selling in Amazon is profitable and, with proper strategies, can be an easy venture for you, with lucrative returns.

If you want to ship to Amazon, you will need to have an Amazon account.

With your account, head over to your profile and create a listing of the products you want to ship from Singapore.

The next procedure is adding the description of the product you want to ship.

Here, you can liaise with your supplier to help you have the correct product description.

After managing your inventories, you set up your shipment and specify how your products are packed and the number of units you are sending.

The next thing is preparing your products for shipping.

You can ship products from Singapore to Amazon FBA in the form of:

• Individual pallets or containers
• Using Amazon Freight forwarders from Singapore to the US
• Packaging and labeling your products.

You should pay close attention to how you are labeling your Amazon products to avoid rejections.

Finally, you can deliver your products to any fulfillment center where Amazon will pick your products.

Ports Guide when Shipping from Singapore to the US

Knowing the loading ports and the ports of arrival is significant when shipping from Singapore to US.

It helps you plan your budget and delivery schedule for the better supply chain management.

The following are some ports you can use when shipping goods from Singapore to US.

Busiest Ocean Cargo Ports in Singapore and US

Singapore has one of the busiest ports in the world, known as the port of Singapore.

This port harbors all types of shipping vessels and can handle any tonnage of cargo.

There are two main commercial terminal operators in Singapore which are:

PSA Singapore Terminals

This port operates four container terminals and can handle mega container vessels.

The port can help you ship large cargo and has gained a fast reputation as a car shipping port from Singapore to the US.

Jurong Port

Jurong port handles mainly bulk cargo from Singapore to the US and other regions.

You can use the Jurong port to ship products that include cement, copper, among other products.

The port operates efficiently and can enable you to meet your shipping needs.

Equally, the US also has very many well-developed shipping ports.

Hence, your port choice should be defined by your shipping needs and the proximity to your warehouse.

Some of the major seaports in the US include:

• Port of long beach
• Port of New York
• Port of Seattle
• Port of Los Angeles

Busiest Air Ports in Singapore and US

You should settle on an airport in Singapore based on its ability to handle your cargo, the reputation it has, and how close it is to your supplier.

The two major airports in Singapore used for cargo shipping are:

• Changi Airport
• Seletar Airport

In the US, nearly every state has a cargo airport that you can use to land your products from Singapore.

Nevertheless, checking with your shipping company will help you know the routes they use and the final delivery point.

The main shipping airports in the US include:

• Los Angeles International Airport
• Memphis International Airport
• Miami International Airport
• Louisville International Airport
• Philadelphia International Airport

Factors to Consider when Choosing Shipping Port from Singapore to the US

As you’ve noted, there are several considerations to make when choosing your shipping ports in Singapore and the USA.

These are:

Location

You can understand location from different perspectives.

It can be your supplier’s location, the shipping port in Singapore, and the US’s delivery port

It would help if you chose your shipping port in Singapore depending on your supplier’s location to reduce inland transportation costs.

When choosing a delivery port in the US, it should be close to your warehouse for efficiency and reduced costs while in the US.

Nevertheless, whichever location works for you, the further apart the shipping ports are, the higher the shipping costs and time.

Cost

Cost is the price you pay for shipping your goods from Singapore to the US.

Depending on your departure and destination ports, your shipping costs will increase with an increase in the distance.

You can compare shipping costs between different ports in Singapore to the US and decide which alternative has lower costs and serves your needs.

Transit Time

Transit time is the delivery time taken from Singapore until you get your shipment in the US.

The shipping company and the port impact transit time. Again, the longer the distance, the longer the transit time.

Understanding FDA Requirements when Shipping from Singapore to the US

The FDA regulates a lot of the products that you can import from Singapore to US.

Hence, before shipping, make sure you understand the FDA rules and regulations on the specific products you want to import.

This will help you avoid trouble with US Customs

The modern business trend has taken another angle, reducing the strain of manufacturing every product your business sells.

Contract manufacturing allows you to hire companies with economies of scale and manufacturing technology to work on your desired products.

This guide offers a detailed explanation of what exactly contract manufacturing is and why it is a perfect option for your business.

What is Contract Manufacturing?

With the ease of shipping and the emergence of online stores such as Amazon, Business has taken a new angle.

Contract manufacturing is closely associated with outsourcing.

It refers to minimizing operation costs by having some part of your business operations handled by others.

Therefore, contract manufacturing can be defined as the process of hiring another company/manufacturer to produce your products.

In this, the nature of the contract is such that you enter into an informal agreement with the manufacturer.

Manufacturing services include engineering and designing the product and manufacturing the product to required specifications.

How Contract Manufacturing works

The whole intent of contract manufacturing is to reduce production costs and benefit from other manufacturers’ technologies.

In this case, the manufacturer provides the design of either making a new product or improving an existing one.

Your only part is to market your products and sell them to your customers.

The process begins by choosing a manufacturer of choice.

When choosing a manufacturer for your products, you must consider their capabilities.

The right manufacturer must have the right machinery, adequate personnel, technologies, access to quality, and affordable raw materials.

Most importantly, they should possess the requisite certifications for manufacturing your kind of product.

Once you have selected your preferred manufacturer, you sign a contract manufacturing agreement.

The agreement should detail the nature of the contract, the quantities you want, price, and quality desired.

should also specify the manufacturing lead-time and penalties for late delivery.

When to use Contract Manufacturing

Many factors dictate the choice of using contract manufacturing.

Your business needs to operate under minimal expenditures but maximum returns.

The following are instances when you can use contract manufacturing:

When your Business is Just Starting

Starting and setting the pace for your business can be challenging and expensive.

The whole process involved, from developing the product idea, getting the necessary machinery and workforce, and delivering the product to the customers, can be overwhelming.

To reduce the strain and huge capital to manufacture your products, you can opt for contract manufacturing.

Not only does contract manufacturing save you on costs, but it can also help set the pace for your business by having quality products manufactured.

Challenges in Financial or Working Capital

When you are faced with difficulties in your business due to financial constraints, you can choose to hire a contract manufacturer.

Moreover, the arrangement is beneficial to you because anytime you feel stable; you can quit and continue manufacturing on your own.

When you need to Improve the Quality of your Products

Sometimes getting the right product to the market can be difficult.

With the experience and technology contract manufacturers have, they can improve your product in a short span.

Remember, these are companies with long manufacturing history.

They can help improve your product quality as fast as possible.

Establishing your Brand

As a business principle, the customers who matter most are those that come back.

This is only achieved through setting the pace by delivering quality first products.

Additionally, identifying your business with a reputable contract manufacturer taints a positive image to your customers’ eyes and can increase sales.

Seasonality in Demand

During certain peak seasons like holidays, the demand for products is high.

You can use contract manufacturing during these seasons to increase your supply and help meet the growing demand.

Examples of Contract Manufacturing

To understand the concept of contract manufacturing better, it would help to look at a real-life scenario of how it works.

Here is one example:

Suppose company X, a Pharmaceutical company, is facing an increase in demand for Tablets.

As a result, company X wants to increase its production capacity.

To accomplish this, they need an updated conveyor and an additional Tablet compressing machine to handle the overflow.

Together with the operations crew, company X decides the right specifications they’ll need for the machinery.

However, they are unsure how it will look like despite having a rough idea on paper.

To put their plan into motion, company X takes the specs to a capable contract manufacturer that will help them smooth out the details.

Company X and the contract manufacturing company agree and sign a contract for the fabrication of the new machinery.

In the next few months, the contract manufacturer finds the needed material for parts.

They then cut the parts and assemble them all into the required machinery.

The new machinery undergoes thorough testing and product inspection to ensure that they work fine as per company X’s expectations.

Upon passing the tests and inspections, the manufacturer delivers the completed machinery to company X by rail or sea.

The method of delivery will depend on the Incoterms initially agreed upon the signing of the contract.

Company X may also assist in installing the machinery and run some final tests to make sure everything is working as it should.

Note that the contract manufacturing service doesn’t end there.

The manufacturer may continue to service the machinery long after the sale, thereby adding extra value.

Difference between Contract Manufacturing vs. Outsourcing

Contract manufacturing and outsourcing differ in the scope and manner in which responsibility is transferred from one party to another.

In contract manufacturing, the operations hired are always conducted in the manufacturing facility instead of your facility.

Again, in contract manufacturing, the emphasis is on hiring someone with the capacity and ability to handle what you cannot.

Outsourcing, on the other hand, has grown importance when specialization and costs saving are a necessity.

It means hiring other firms’ services to handle particular areas of your operation, leaving you to focus on the more critical areas.

In outsourcing, you have the power to perform the tasks yourself. However, due to various reasons such as complexity, you have others take care of it.

The main difference between contract manufacturing and outsourcing comes in the amount of control you have over the company.

In contract manufacturing, the company operates on your terms.

While in outsourcing, you let the company do what they do best.

Who can seek Contract Manufacturing?

Any company or business can seek contract manufacturing as long as there is a need to have quality manufactured at a considerate cost.

The size of your business doesn’t matter.

Suppose the idea of setting your facility and hiring the needed workforce to manufacturer your products gives you a headache.

Then contract manufacturing can help you.

Who can benefit from Contract Manufacturing?

We have mentioned that contract manufacturing aims to save on costs while having others manufacture quality products for you.

Many businesses can benefit from contract manufacturing, and they include:

Startups

For startups, the cost of setting up facilities can be high, and the available capital inadequate.

By having their products manufactured through contracts, they get to reduce production costs.

Also, starting a business by using the services of contract manufacturing is beneficial.

You get to make a long-lasting relationship.

Finally, startups want to avoid risks associated with entry into a new market.

Contract manufacturing can help provide products to help you test and determine the market potential.

Companies Looking to Improve Profitability

When you are producing products yourself, you incur many costs, from product development, raw materials, and labor.

Contract manufacturing reduces these costs leaving you with only marketing and making deliveries to customers.

In the end, you increase your profit margins.

Companies Looking to Improve Quality

As cliché as it may sound, contract manufacturers hone their technology in production.

They have long experience in product development and offer the best quality products.

If you want to improve the quality of your products, contract manufacturers offer the best alternative.

Companies that Want to Improve Overall Efficiency

By letting contract manufacturers take care of your production, you are left with a simple marketing job.

This improves your supply chain efficiency.

Types of Contract Manufacturing

The nature of contract manufacturing varies from merely having the manufacturer improve your products’ quality to building a completely different product.

Some of the typical contract manufacturing includes:

Manufacturing of Entire Products

Suppose your business has discovered a new market with lucrative potential, and it requires an entirely new product.

In this case, the first thing to do is perform an internal analysis of your production techniques.

Check whether you have the resources and technical know-how to develop the product.

If it turns out that you lack the technology or that making a new product will be costly for your business, then you find a contract manufacturer.

You will approach a suitable contract manufacturer, present them with the idea of the product you want to be manufactured and formally agree on the contract.

Hiring of Service or Labor

Service contracting is common when you don’t require your employees or the existing employees don’t have the needed skills.

Under this, you contract a sub-contractor with the needed labor.

This can range from specialized services such as distribution, manufacturing, or designing.

Using Equipment or the Facility

Sometimes your new market can require the manufacturing of exceptional products that require the use of designed facilities or equipment.

In such a case, the best alternative to constructing or purchasing own facility and equipment is using contract manufacturing.

You will use the facility or the contracted manufacturer’s equipment at a small cost compared to having your facilities or equipment.

Manufacturing of a Part of a Product

Contract manufacturing comes in handy when your product uses more than one component.

An example is in the electronic industry, where products have different components each manufacturer in different companies.

Here, you will hire different contract manufacturers, each with their specialization to manufacture your products’ components.

The Benefits of Contract Manufacturing

Contract manufacturing can be beneficial in several ways.

Whether you’re just starting your business or looking to improve your products’ quality, here is how contract manufacturing can benefit you:

Reduced Costs

The profit margins from sales made are greatly affected by the expenses.

As a business, you want to reduce your operating costs as much as possible to increase profits.

In adopting contract manufacturing, you reduce costs significantly.

This is because you don’t have to purchase machinery, construct facilities or even engineer the product’s prototype.

Additionally, you won’t incur daily operation costs or even service the machinery used.

Reduced costs also mean lower labor costs to your business.

When you hire a contract manufacturer, they will be responsible for the labor, and in turn, this will reduce your production costs.

Since the manufacturer enjoys economies of scale in their production, you will enjoy low prices on the manufactured products.

Quality Products

Customers want quality products at the most affordable rates.

Given the advancement in the technology used by contract manufacturers, you are assured of getting quality products.

Your choice of the manufacturer to use will determine the overall quality.

The more experienced the manufacturer is, the more quality products you will get.

Faster Production Time and Market Time

Settling on hiring a contract manufacturer means that you understand their services, and their turnaround suits your business.

Well-established contract manufacturers have the machinery for hastening the production process and getting you products when you want them.

With equipment such as CNC, developing your product prototypes is speeded.

When you are sure of the delivery process, you can easily schedule other aspects of your business, such as delivering the products to the customers.

Streamlined Business Operations

There are many supply chain agents you deal with before getting the products to the final consumers.

Dealing with the many suppliers, distributors, and even warehousing companies can be overwhelming and consume much of your time.

By hiring a contract manufacturer, you control the business because of the freedom and ease of operations.

Your supplier handles the rest while you only get to wait for the product and work to meet your customer’s deadlines and demands.

Cons of Contract Manufacturing

Although beneficial to your business, contract manufacturing, if not handled well, can have negative impacts on your business.

Limited Control on Important Aspects of your Business

The nature of contract manufacturing lets them deliver on your specifications and demand on hiring a company.

This means that you will have minimal control over the processes they use to produce your goods.

On the other hand, the manufacturer has limited control over suggesting and designing products that can suit your needs.

They are only to deliver as per your demands, no questions asked.

Competition for a single Contract Manufacturer

The choice of using a particular contract manufacturer is influenced by the reputation they have.

This good reputation gives them other clients apart from you.

In the end, the manufacturer may have special clients, and once in a while, the agreed delivery time increases.

Job Displacement and Loss of your Valuable Employees

After factoring in the low costs, you incur when you hire a contract manufacturer, chances are you will lay off your workforce and fully rely on the manufacturer.

In the event of a change in terms of the contract, getting back your skilled employees can become difficult.

This change can, in turn, greatly affect your business.

Risks of Hiring the Wrong Contract Manufacturer

Getting the right manufacturer requires in-depth analysis and careful considerations.

If you land on the wrong contract manufacturer, your products’ quality suffers, impacting your business’s reputation.

Contract Manufacturing Strategy

Whether you have long-term or short-term goals of working with your contract manufacturer, you require a strategy that will benefit your business.

Contact manufacturing strategy refers to a decision-making system that ensures you achieve your true intent of the association. In the process, you also get to achieve the desired manufacturing structure.

The true intent of the strategy is to ensure you achieve the best system of manufacturing.

Contract manufacturing strategy is grouped into the following categories:

Regulations Compliance

Under this, the strategy ensures that the contract manufacturing company understands the industry’s cGMP.

Risk Management

Risk is both accessed in terms of delivering defective products to customers and the likelihood of having the manufacturer infringe the agreement.

You should have strategies to reduce all risks that may arise as much as possible.

Effective Technology

Contract manufacturing should constantly update the technology in use to ensure it is current and efficient.

You should also identify a balance between costs, production time, and quality.

How to use Contract Manufacturing to grow your business

Business is evolving, and you want to have a comparative advantage over your competitors.

To uplift your business, you can use contract manufacturing to:

Produce Quality Products

Quality products attract customers. When your brand gains a reputation based on its quality, your business will generate more sales.

Offer Lower Prices

When you efficiently produce quality products at a cheap cost, you can easily reduce your goods’ prices.

Low-quality products increase total sales, thus an increase in profit margins.

Crucial Supply Chain Strategy

Hiring contract manufacturers make it easy to budget with expected produce, accept orders, and schedule deliveries.

A contract manufacturer can help you when your production capacity is low relative to the demand.

This will put you above your competitors, improving your reliability in the market.

Contract manufacturing lowers your operating expenses.

Different Types of Contract Manufacturers you can Choose

Contract manufacturing is wide and can include different parts of your business production chain.

This leads to the rise in different types of contract manufacturers classified into three distinct categories.

Depending on the Manufacturing Agreement

This category groups the contract manufacturers depending on the types of agreement they use.

Individual Component Manufacturer

Individual component manufacturers are suitable when you need specific components that form part of your complex product.

They specialize in one product and do not take part in assembling.

Private Label Manufacturer

Private label manufacturers specialize in manufacturing and assembling complete products.

They are suitable if you need ready-for-safe products.

They develop the products and deliver them to your specified location.

End-to-end Manufacturing

Although similar to private label manufacturing, they develop a superior quality product and go overboard to seek feedback from you.

They are important when you want simply-the-best products.

Labor Subcontracting

Just like the individual contractor, the labor subcontractor specializes in handling only one aspect.

They are important when you have complex products because they can help develop quality and affordable products faster.

Depending on the type of manufacturing services, tools, and materials

This category classifies contract manufacturers based on the in-house resources they have.

Your manufacturer’s choice will depend on their specialization and the tools they have at hand to speed up your product’s manufacturing.

Some of the common tools used in the manufacturing industry include:

• Laser Scanners
• CNC machinery
• CAD software

Also, not all manufacturers specialize in using all materials.

Depending on the materials you want your products to be made from, you should check to ensure your manufacturer has it.

Common materials include:

• Different types of metals and wood
• Silicon’s such as gels and RTV
• Polyurethanes such as viscoelastic foams.

Besides, your manufacturers should have a qualified team of engineers skilled in machine and equipment operation.

Your manufacturer should have the best labor force to speed up manufacturing and guarantee quality products.

Types of Industries that the Manufacturers Support

Contract manufacturers specialize in different industries.

When you sport a contract manufacturer who operates across different industries, first check their reputation.

This will help you verify if they excel at producing your good.

The contract manufacturer should have knowledge of the latest trends in the industry your products fall under.

They should understand your customers’ expectations and be able to help through product development.

Some of the major industries that contract manufactures can fall under include:

• Electronics industry
• Healthcare industry
• Telecommunication

Elements of Contract Manufacturing

The purpose of contract manufacturing is to ensure improved quality of products and consistency in your supply chain.

This means your relationship with the manufacturers should be guided by prompt communication and ethical behaviors.

The elements of contract manufacturing include:

Information Sharing

To ensure trust and commonality of the contract, your relationship should be transparent through the absolute sharing of information.

The information to be shared in this case includes new production trends, market anticipation, and sales forecasts.

Cooperation

Despite being the boss and deciding the products your manufacturers should deliver, you should see them as worthy partners.

This calls for cooperation at all levels of the agreement.

Integration of Processes

Integration involves setting out everything from the start of the contract agreement.

This can be done by planning and incorporating all parties involved in the manufacturing of the product.

Partnership

Partnership involves linking with all participants in the supply chain, including suppliers, distributors, and customers.

It involves valuing their role and striving to form strategic alliances with them to boost business relationships.

Risk and Reward Sharing

You should not be self-centered when risks occur; you let your manufacturer suffer the consequences alone.

Risk and reward sharing boosts contract manufacturing and allows you to focus on your business’s long-term aspects.

How to select the best Contract Manufacturer

We have mentioned that contract manufacturers are worthy partners in saving you on costs while providing quality products.

Getting such a partner can be overwhelming, and you should pay attention to your choice of manufacturer.

The best contract manufacturer should be able to walk with you through the entire product development process.

They should help you develop the product and give you approximate costs to incur in the whole process of developing a product.

When choosing a contract manufacturer for your needs, you need to first consider their reputation.

You would want to work with someone who knows what they are doing.

You can check their website for reviews and ratings from previous clients.

This will give you a look into what they can and cannot accomplish regarding manufacturing your product.

Finally, don’t settle on the first contract manufacturer who offers pricing rates that seem appealing to you.

While you may want to save on costs, this does not mean you should compromise on quality.

Popular Myths and Misconceptions about Contract Manufacturing

With the rise in the number of companies that offer contract manufacturing, there are many fears about their legality and worth investing in them.

Also, the nature of contract manufacturing in terms of delegating the most important aspect of your business production to others can be tough.

This has led to numerous myths and misconceptions about working with a contract manufacturer.

They include:

Lower Quality

Numerous questions and doubts have arisen on how a third party can surpass or produce quality products as per the given specification.

However, this is not the case; contract manufacturers hone their manufacturing technologies and value your business.

They strive to ensure they produce quality products according to your specification.

Loss of Control

Many businesses fear opting for contract manufacturing because they fear losing control of the whole manufacturing process.

Others fear that making important business decisions such as arranging for sales and controlling the production process may affect their business.

Contract manufacturing should not limit you from having control of your business.

Depending on the agreement, you can be there throughout the manufacturing process.

A good contract manufacturer should allow you to communicate your needs and integrate customer demand in every related aspect.

Low Priority

Not all businesses adopt contract manufacturing because they believe that contract manufacturers serve many customers and prioritize some.

On choosing a contract manufacturer, you should strive to develop a trustworthy relationship by ensuring proper communication.

This way, you will reduce the worry of having other customers favored.

Additionally, the right contract manufacturer should balance their customers’ demand and ensure each of their needs is met as per the agreement.

Furthermore, you are their customers, and they need you as a partner.

Contract manufacturers also understand the repercussions because you can shift to other manufacturers if they misbehave.

Contract Manufacturing Affects Employees

There has been concern that hiring contract manufacturers affect existing employees and can lead to layoffs.

This is not necessarily true because employees are left to focus on fewer remaining responsibilities within the business, increasing their productivity.

Loss of Intellectual Property

Contract manufacturing involves developing your products through third-party facilities.

As such, many have raised concern that processes, technologies, and propriety methods can land in competitors’ hands.

However, this is not the case. Before signing a contract manufacturing deal, the manufacturer signs a non-disclose agreement.

This agreement safeguards your business’ intellectual property rights. Competitors cannot access your production techniques.

Contract Manufacturing Agreement

A contract manufacturing agreement is a binding document between you and the manufacturer.

The agreement specifies every party’s role and that the manufactured goods are as per your specification and should not be manufactured for other customers.

The agreement is applicable when you want your products manufactured once or over a period.

A contract manufacturing agreement entails both your details and those of the manufacturer.

Some of the details include respective addresses, details of the goods, contact details.

After filling the document, every party involved should sign and retain a copy of the document.

The contract manufacturing agreement is legal and is subject to the rule of law.

How to Coexist with your Contract Manufacturer

In as much as contract manufacturing may seem cheap and safe in producing quality products for your business, there are risks involved.

Your manufacturer has access to your products together with other customer’s products.

This means that they understand the production process and sometimes have access to intellectual rights.

Your manufacturer can decide to leak your product to other competitors.

Even worse, they may start producing the product and selling directly to retailers and wholesalers.

This can greatly impact your business, reducing your profit margins and sales.

In this case, your solution to be safe is to adopt strategies that can minimize the occurrence and not put your business in jeopardy.

Be Careful what you Source.

You should be careful about what you hire the contract manufacturer for.

They shouldn’t have access to all details of the product you want from the manufacturer.

This involves keeping key details that can make them an equal partner and start producing the same product to rival you.

Here, you should also keep the terms of the agreement private and advocate for professionalism in your dealings with them.

Suit Relationship to the Circumstance

The contract should serve its purpose with your contract manufacturer doing their part and not going beyond the set limits.

When your products are complex to the manufacturer, you would want to have a long relationship with the manufacturer.

This is because the whole process requires devotion of time.

Additionally, when your products are simple to make, shorter contract duration would be appropriate.

This can help to avoid the manufacturer’s cases using alternatives to produce the same product.

Give Trustworthy Partners their Freedom.

Trust is two-way. By having trust in your contract manufacturer, you gain their loyalty and become a valuable partner they wouldn’t want to betray.

When a contract manufacturer is willing to share another client’s procedure of making products, this should be a warning that they can do the same for you.

Deepen your Distributors and Customers Loyalty

The fact that the contract manufacturer enjoys economies of scale does not mean that they can beat you in the business.

You can gain customer and distributor loyalty and have them develop a liking for your product.

This way, when the contract manufacturer faces them, their chances of opting for those products because of low prices

A modular home is a type of home which involves putting together manufactured segments to form a home.

These parts are usually made by a firm that fully specializes in making modular homes.

Afterwards, upon an order, the segments undergo a process of installation on the preferred site.

In lay man’s language, it simply involves assembling parts of a house to form a home.

What Modular Homes Look Like?

Modular homes are not any different from normal homes.

The structures and designs are formulated to suit the need of owning a home.

They come with a range of styles too.

You can as well suggest a house design you wish to own and it is customized to your liking.

Whether, it’s a modern, tradition or even an ultra-modern home, the builders will be sure to attend to your need.

Moreover, these homes are not that much different from the built-on site ones.

Just like a built on site home, you can incorporate utilities such as kitchen drawer, toilets bathrooms and the likes.

Factors such as neighbourhood region, lot size, norms, budget available and customer need greatly contribute to putting up a modular home.

Most of modular manufacturers work hand in hand with architectures to help deliver beautiful modular homes.

How Modular Homes Are Made

If you have seen how car parts are assembled to bring forth a car, then modular homes are no new news to you.

A modular homes has its parts transported to the preferred site of residence.

This majorly done by a large size truck to accommodate the materials.

With the help of the manufacturers and cranes, a house is put together to form a home.

It is quite an easy process to understand.

However, the real work draws much work and efforts.

Benefits of Owning a Modular Home

Modular homes bear a number of benefits. These are;

· Modular Homes have a Shorter Time to giving you a Home

A modular home is faster because its parts are readily available and they just need to be put together.

In a matter of weeks, you can have your home ready for moving in.

· Modular Homes Speak Quality

A modular has its parts made from strong materials.

This is true featuring the fact that during their transport, they arrive while intact.

Moreover, you are bound to live in an air quality proof home.

This is because the materials used are not exposed to bad external conditions like rains.

· Modular Homes Save you Money and Time.

Unlike a home built on site, a modular home is likely to be far way more less costly.

Both financially and time wise.

With a modular home, most of the materials are under bulk purchase.

This means that you will receive a wholesale price for your materials.

Moreover, unlike when you decide to opt for construction, a modular home saves you time.

In fact, a modular home is a good option for someone who wishes to settle in quickly.

· They are Environmentally Friendly

Modular homes are made in factories.

Hence there is little to no waste products lying all over the compound.

In fact, the remainder materials mostly underdo recycling.

· Material Efficient

Most modular home builders know the exact material required in putting up the home of your desire.

Hence saves you the hustle of buying excess or inadequate materials for the construction.

· They have More air Quality Materials

Most build on site houses suffer poor air quality due to accumulation of moisture during construction.

Modular homes eliminate this factor due to their enclosed construction area.

· They offer Flexibility

Modular homes allow you to customize your home to your liking.

Moreover, you are allowed to even disassemble and assemble it all over again.

Modular Home vs. Manufactured Home

A manufactured home is similar with the modular home in that both of these types are manufactured at factories.

However, the difference comes in the final product.

For a modular home, its part is delivered to the site of set up then an assembling team puts it up together.

For a manufactured home, the house is delivered while complete.

It mostly comes in a steel chassis or fitted with wheels.

It is then placed at your choice of residence.

For a manufactured home, it is less expensive compared to the built on site ones.

The same factor applies to modular homes. However, the financing of these two types of homes is different.

For a modular home, the financing is usually almost the same as those for the built on site homes.

The financing of a manufactured home is treated in the same way as owning personal property.

Hence taxation and consumer rights protections guidelines are applicable for this type of home.

Moreover, as modular homes are required to meet the requirement of house codes, manufactured are free from such obligations.

Modular homes are also much more expensive compared to the manufactured homes.

When it comes to customization, modular homes make it easier for the owner to make certain alterations.

Manufactured homes rarely offer the pleasure of working with your space once it is ready.

Did I mention how manufactured homes allow you to move.

Yes, with your entire house.

They come with the possibility of mobility.

The modular homes are more similar to build on-site homes.

They do not come with the laxity of portability.

It is best to define your preferences weighing both the pros and cons of these two homes.

This is because both these homes are different. It all comes down to the type of home that can comfortably accommodate you.

You should also be comfortable with the financial capabilities of owning either a modular or manufactured home.

Downside of Modular Homes

Modular homes carry a few drawbacks.

These are;

· They Suffer Stigmatization.

Modular homes have been there for the very longest time.

Yet, they still remain the least on the purchase list.

People tend to get confused with the mobile homes.

Modular homes are designed to serve the same purpose as the built-on site.

· Need for Renovation.

This applies to most modular homes.

This is because most of these are already built.

Renovations such as paint and some finishing which you as a customer desire.

On the bright side, when these renovations are done, you would not be able to tell it apart from the built-on site.

· Modular Houses do not Come with Land

Yes.

This is probably one of the major drawbacks of modular homes.

Before purchasing a modular home, it is advisable to choose your ideal site and purchase it early in advance.

What modular homes are responsible for is delivering your modular home to where you wish to set up your home.

· They are not all Price Inclusive

This means that you will have to ensure that you have sort out your electricity plans.

This also applies to having a plumbing plan, setting up your septic tank, and other utilities needed to set up.

Due to their nature, some financial institutions are adamant about offering loans to modular homeowners.

Modular Home Standards and Zoning Considerations

A number of factors account for when setting up a modular home.

The main aspects of being the zoning and standards of modular homes.

The zoning simply represents the region where the modular home is being set up.

Areas prone to hurricanes, snowy effects and any other environmental hazard to affect your home.

For standards, modular homes take into consideration the following four aspects;

• Building strength
• CE marking
• Surface and finishes
• Regional differences such as climate, demography and local housing architecture

· Building Strength

The current modular homes incorporate a building strength that incorporates modern designs.

For example, in the case of using nails, modular homes opt for screws.

The joints use glue and there is even an 8-10% increase in the use of lumber compared to conventional housing.

Surprisingly, these aspects prove to make a stronger house compared to those built on site.

Their strength is also evident when transporting the materials.

· CE Marking

Here is where as a user, you are given a guarantee for mechanical resistance and strength.

The persons responsible for the materials used to make your modular home are kept under a record.

This is in order to allow for easier tracing in case of complaints.

These records cover the following;

• The suppliers responsible. They should be bare certifications.
• Recordings of all the materials used in the manufacture of the modular home in batches
• Quality of the elementary products
• Management of the assembly team and the quality of its job
• An overall standards unit check to affirm the quality of your modular home.

Most factories have a set database that ensures that the above recordings are keenly recorded and are up to date.

· Surface and Finishes

It is advisable to choose the ideal space to set up your modular house.

For most, modular houses set up in areas prone to floods, come with stilts.

You can also opt for a crawl space or even the standard slab and full basements.

Did you know you can also set up a storey building of modular?

Well, now you know.

Some countries like Australia allow for more than 24 floors and even more.

When it comes to finishes, this can be done in the factory or even on the site during set up.

However, for the brick and stone veneers, field finishes are applicable.

For the roofs, the finishing’s commenced at the factory, then the final event takes place at the site of residence.

· Regional Differences such as Climate, Demography and Local Housing Architecture

Climatic conditions such as winds, snowy places, hurricanes, and floods, all affect the way you put up your modular home.

The finishing should be customized in such a way they provide extra strength to withstand harsh climatic conditions.

For demography, this mostly depends on the way people have embraced modular homes.

Local housing architecture as well plays a role in this.

Most people will set up a home depending on the prevalent design in their local area of residence.

Hence the reason for the vast range of modular house designs, from traditional to modern designs.

Modular Home Cost

As earlier mentioned, modular homes are less costly compared to the built on site ones.

As much as they save you on time, they offer you a very price friendly aspect.

Here is a breakdown of how much you will spend on your modular home;

· You will need to Purchase a Piece of Land.

Modular homes need a place where they can be set up.

Land prices range with the size and location you wish to set up your home.

This mostly will resonate with your seller.

A good piece of land will fall under the price range of about $14,000 for an ideal three-bedroom mansion.

· You are also Required to Make Site Preparations

This majorly encompasses clearing any bushes and trees that hinder your modular set up ventures.

It also involves making way for proper drainage.

Leveling your land will also be advisable.

This will not be very costly.

On average the price ranges at $7,500

· Setting up a Foundation

This means that you easily choose the type of basement to set up.

Whether it is a full basement or just one accommodating a crawl space.

For a full basement, you might incur a little more costs to help give you a more needed space.

However, if you are comfortable without the extra space, a regular foundation will do you just fine.

· The Setup Cost

This will arise from your manufacturer.

This is majorly the total cost of setting up and mounting your home.

For the earlier mentioned type of home, the price will range to about $94,000.

The price is not inclusive of customizations.

Also this price will differ depending on the design and type of house you are purchasing.

· Customizations

You will want to make your home feel like a real home.

Customizations such as use of more moderns and strong finishes for the doors and windows apply.

You might also want some alterations made to your kitchen and even the garage area.

All these customizations depend on the choice of the buyer and how flexible your manufacturer can be.

They can cost you up to a total of $31,000 or even more depending on your choice of customization.

· Delivery Fees and Taxes

As the buyer, you will be accountable for the cost of transporting the materials to put up your modular house.

Most of the modular factories offer trucks which in turn allow you to pay for the transportation cost.

Hence this price will be clearly defined by your manufacturer

You Will also Have to bear the Costs of the Finishing Works.

Usually it Ranges at About $15000 or even Less.

These majorly accounts for the final touches to your modular home.

You will also Have to Obtain Permits to Allow you to Set up your Modular Home.

The prices definitely are different depending on the region where you decide to live in.

Some of the permits you need to obtain include

• Building permits
• Mechanical permits
• Pre-plan review fee
• Certificate of occupancy

Hence, setting aside an average amount of $2,500 will allow you to have a hold of the permits you need to live in your new modular home.

Without even attracting unnecessary attention from the authority.

· Utilities Cost

This includes the septic tank and the electricity set up, and plumbing services.

An average amount of $2,500 will have you good to go for your utilities.

With the above price ranges, a total of not more than $200,000 dollars will have you set up a nice home with three bedrooms.

A home that comes with a full basement plan, two bathrooms, hardwood floor plans with a beautiful kitchen.

Popular Modular Home Styles to Consider

Modular homes offer a wide range of building styles that are able to satisfy a vast number of customers.

Below are some of the styles available for modular houses.

· Ranch Homes

Ranch home style is among the most common styles used for modular houses.

Maybe they are easy to set up or just have a laxity different than the others.

I guess you will have to ask your manufacturer about all the fuss in modular homes opting for the ranch style.

They are rectangular in shape.

Thus they are wider that they are vertical.

Its finishing is less on ornaments yet it is able to present a modern view.

Surprisingly, this style accounts for more than 60% of modular homes do far purchased.

· Log Cabins

From the name, you can easily tell what these homes are made off.

Log of course.

They are designed to feature a cabin and to offer a rustic feeling for such homes.

If you are looking for a design that will offer you that natural feeling, the log cabins are what you need.

·  Contemporary Homes

The most modern yet technically designed designs of modular houses continue with changing designs with time.

They account for the largest prefabricated homes with a vast growth.

However, they are yet to be commonly embraced with only a 12% total purchase of this type of design.

· Chalet

This design incorporates the use of wood for its construction.

They come with a gently sloping roof with wide eaves which are supported to form a right angle shape at the front.

It is a design that can comfortably give you a nice home for living.

· Cape Cod

This design represents those traditional house designs that date back to the 17^th century.

However, the steep pitched roofs with oversized chimneys has managed to be on trend over the time.

It is becoming common with time.

The Cape cod design is also available as a modular home in case you need one.

· Colonial Style

From just the name, these style of modular homes originates from the 16^th to 19^th century.

It comes fitted with centrally positioned chimneys with steep double hipped roof tops.

They are also fitted with rich exterior ornamentations.

A perfect design for your ideal modular home.

· Two –storey home

It is a traditional modular made home.

It comes with two or even more storey.

The basement is separate from the storey levels.

· Modular Home Mansions

A mansion, unlike the other homes, can accommodate several rooms that seek to satisfy recreational activities.

For a regular built on site mansion, it will take up a space of about 7000 square meters.

For the modular ones, 5000 square feet would fit a mansion of modular style.

· Green Homes

A green home is one that its buildings put into consideration the aspect of providing a resource-efficient living.

This is a style that all modular home manufacturers comfortably put under consideration following the nature of homes they produce.

Getting a green home is much easier for a modular home.

· Duplex-multifamily Homes

From the name, this type of home comes with two separate living areas.

They completely do not share the entrance neither is there a common indoor space.

They are designed to accommodate more than one family.

They range from apartments, man camps, lodges, hotels, townhouses and even oilfield housing.

Similarities and Differences of Modular Home vs. Built-on-site home

A modular home and a built on site home all serve the purpose of providing one a home to live in.

However, as much as they bare similarities, they both are different.

Below are some of the differences between a modular home and a built on-site home.

· Time

They both differ when it comes to the length of time you get to have your home ready.

It is much faster if you are looking forward to getting a modular home, rather than a built on-site one.

This is because, a modular home more or less involves assembling the parts to make a home.

A built on-site home requires time to set up.

· Environment Friendliness

A modular home is more environmentally friendly compared to the one built on site.

This is because a modular home is built in an indoor space.

Moreover, most of the left over materials can easily be recycled.

A built on site home doesn’t offer the luxury of recycling waste materials.

· Quality

Modular homes are now offering a more quality home compared to most built on site homes.

This is because the environment in which they are made in are not affected by external weather conditions.

In fact, they are able to provide a top air quality house compared to the built on site.

Last but not least, Modular homes have a set of guidelines and rules that they must adhere to that does not conform much to the built on site homes.

Modular homes and built on site homes are as well incomparable after set up.

They are similar in the following ways

• The prices of these type of homes appreciate and depreciate in value the same way.
• Financing of modular homes in terms of loans and taxation is no different compared to the built on-site homes.

Modular homes also allow you to apply for homes to help in financing your home.

• Modular homes are available in different designs and styles as outlined earlier.

The same case is in the built on-site homes.

They both allow you to customize your home to your liking.

• Basements and crawl spaces are not limited in a modular home and a built on site home.
• Just like built on-site homes, you can adjust your modular home or even add more accessories to make it more accessible and environmentally friendly.

Modular Home vs Mobile Home

A mobile home is mostly referred to as a manufactured home.

Like a modular home, it is built in a factory.

Later it is mounted on a steel chassis and placed to the new place of residence.

Unlike a modular home, a mobile home is portable.

A modular home will arrive to your new place of residence in pieces.

The assembling process takes place on the site.

This is quite different for a mobile home.

A mobile home comes tour place of residence when it is full complete.

The full manufacturing process takes place in factory.

Much more like the modular home, the mobile homes are placed in land which belongs to the buyer.

Thus you will be required to have land whether on rental or yours to help you set up your new home.

However, unlike the modular home, the mobile allows you to move your home to a new preferred location when the need arises.

When it comes to financing your new home, these two types of homes are treated differently.

A modular home has the privileges of financing your home like a built on-site home.

However, for the mobile home, it is treated in the same way as an individual property.

Hence mortgage loans are not applicable to these type of homes.

Hence financing them might be a little costly.

If you are looking forward to settle between in either a modular or a mobile home, it is best to weigh the pros and cons of these two designs.

Your preference will be a key factor on what home to settle with.

Materials used to Make Modular Homes

The following materials are highly used when constructing a modular home

· Concrete

Precast concrete has become the new modern concrete used in the construction of most modular homes.

Precast concrete offers quality material.

It allows for the possibility of providing alterations like suiting as projects aesthetic among other structural requirements.

Apart from being cost-effective, precast concrete allows for fast design and saves construction time.

· Wood

Most modular houses are made from wood.

This is because wood serves best as an insulator.

Its ability to shrink and expand in the presence of moisture makes it an ideal strong material for modular homes.

Additionally, since its construction is in a controlled space, the wood provides a home that guarantees air quality.

· Steel

Steel offers a wide range of benefits. It is no doubt that the material is being used in the construction of a modular home.

As earlier mentioned, one of the reasons that modular houses are better is because they incorporate the use of quality materials in the construction.

Steel has a high resistance to corrosion.

Moreover, steel guarantees quality and durability.

This material is quite ideal for putting up a fire-resistant home.

For interior furnishes, wooden- frame floors are much in modular homes.

Moreover, for the kitchen, granite floors are highly put in use.

However, as a buyer, you can suggest your preferred style of finishes.

They also offer a steel chassis in which you can mount your home on.

Design Considerations for Modular Home

Below is a few considerations to accommodate when settling for a design for your modular home.

· Layout

What is the purpose underlying the set up of your modular home.

It may range from either a hotel, a home, workshop or even an office.

All these ideas will affect the design of your modular home.

· Dimensions and Space

This is critical in that you should provide room for your social amenities like the septic tanks, piping and wiring.

With all these in place, you also need to define how you want your interior space should be.

After putting all these aspects into consideration, then its safe to make the next consideration.

· Realistic

The design you present to your manufacturer should be producible and something achievable.

That’s why it is best to consult with your manufactutrer on the design you wish for yourself and confirm if they can deliver.

· Time

Well, if you need the modular home and time might be a constraint, it is best to discuss with your manufacturer.

· Budget

It is best to opt for a design that you are comfortable financing.

· Materials

Putting together the modular home of your choice requires the right materials.

This also invilves keeping in mind the kind of climate you are living in.

· Laws

It is important to ensure that you are adhering fully to modular home guildelines.

This involves getting the right building codes for your modular structure.

· Future Modifications

As you design your home, allow rrom for flexibility.

This involves allowing room for future adjustments for your modular home.

How to Customize your Modular Home

When it comes to customization, it all depends on one’s perspective about it.

For some it might represent making modifications to an already existing model of a house.

At times, it might mean making your home to your preferred design.

For a modular home, customizations range from attaching garages, converting bedrooms to study or family rooms.

You can also update your kitchen designs and other luxuries like, luxury bath options.

Most manufacturers have a package which they incorporate to accommodate such and even more customizations.

How Long it takes to build a Modular Home

Modular homes are really efficient when it comes to setting up.

Modular homes have a process in which you follow from the planning to the complete set of your home.

It will only take up the least 20 weeks and at the very most, 83 works.

However, most constructions take between 20 to 40 weeks.

This is about 6 to 9 months’ time frame.

A time that is more efficient compared to the built on-site which usually takes longer than this time frame for modular.

Financing Options for your Modular Home

Modular homes are much similar to build on-site homes.

This means that even when it comes to financing through the banks, mortgages are applicable to modular homes as well.

As a result, the following loan options are available for modular homes.

· Construction Loans

These loans are issued with an intention of financing the construction process.

It is usually estimated to be between 4 to 6 months, after which the loan is converted to a permanent loan.

· Cash

You can also opt to pay cash.

It is the best way since it saves from you from interests’ charges form loans as well as closing costs and appraisal fees.

If you are looking forward to apply for a mortgage, ensure;

• You have a good credit score
• You have work references
• Your previous bank statements in place
• And a personal financial statement

Ways to Prepare for your Modular Home

• Prepare for the cost

It is important to work within your budget and if possible avoid any unnecessary costs.

• Contact your local planning office, for zoning rules and building regulations

You wouldn’t want to bump with the authority every now and then concerning misconduct of the law.

• Design with all your requirements in mind i.e. adequate lighting, safe and warm flooring, color, roofing design etc.

This will help you avoid any set of misunderstandings between you and the manufacturer concerning your home.

• Inspection, inspect the Modular Home before purchase, assembly and installation

This will help in ensuring there is quality in your work and that your house is as you wanted.

It is also necessary in order to point out any mistakes or damages of the modular house for early fixation.

• Understand the limitation of a Modular Home

Modular Home Assembly Process

The process follows each other as outlined below;

• First and foremost, the floor is set up
• The walls then follow up
• Then the roof and ceilings are put up
• At this point, the modular home is in place. The plumbing and water systems are then set up.
• Electrical wiring the follows up.
• Drywall finishing then takes up followed by insulation and sheathing processes
• Last but not least, the doors and windows are put up and your modular home is complete.
• Additional customizations according to the buyer`s preference follow suit.

Useful Facts to know about a Modular Home

• Modular homes are set up on a permanent foundation
• The financing of modular homes is not that different with the building on site financing
• Modular homes can be accommodated on crawl spaces as well as basements
• They are fast and time-saving to build compared to build on-site homes
• Their designs differ in size and style
• They appreciate in value. They do not depreciate.
• Most companies of modular homes now use computer-aided design technology.

Modular Home Warranty

Modular homes offer good quality home design.

For this reason, they offer a 10-year home warranty on their homes just to prove how good these homes are.

The warranty comes with an additional two-year warranty for mechanical system