If you’re importing from China to USA or any other country to USA, then you need to understand the role of Federal Maritime Commission.

This guide explores everything you need to know about Federal Maritime Commission.

So, keep reading to learn more.

What Is Federal Maritime Commission?

It refers to a US agency whose responsibility includes regulating ocean shipment into and via the US. These regulations govern both NVOCCs and VOCCs to maintain fair competition.

What Is The History Of The FMC?

FMC started its operations in 1961 as a successor of the United States federal maritime board. Before 1961, United States Federal maritime board functions before 1961 regulated the ocean freight business and promoted itself.

However, with the birth of FMC, a reorganization plan came into effect to separate regulations and promotional functions.

In this new plan, it is the responsibility of FMC to administer the regulation of the shipping laws.

Changes in the shipping act of 1984 and that of the ocean shipping reform act of 1998 affected the operations of FMC. There are three main provisions that FMC use to administer their functions.

These provisions are the public law 89-777, 1988 foreign shipping practices act, 1984 shipping act and merchant marine act 1920.

The shipping act of 1984 introduced a regulation that impacted liner shipping and the responsibility of FMC.

Such regulations include liner services pricing using negotiated contracts instead of public tariffs. The Ocean shipping reform act of 1998 offers a basis for US liner shipping, including flexibility in business operations.

The mission of FMC since its inception is to promote fair ocean shipping practices in the US to all parties involved.

What Is The Role Of The Federal Maritime Commission In Shipping?

The ultimate role of FMC is to create fair competition for all the stakeholders involved in shipping. These parties include importers, exporters, and the American public.

FMC achieves this by formulating rules and regulations and performing several activities. For instance, they formulate policies and regulate the activities of ocean shipping intermediaries.

Ocean intermediaries include non-vessel operating common carriers and ocean freight forwarders. They also issue specific licenses to stakeholders like the ocean shipment intermediaries.

These licenses facilitate the shipping activities of these intermediaries into or from the US. It is also the duty of the FMC to asses’ applicable fees and penalties.

The purpose of the assessment is to violate the fees that customers pay and freight forwarders’ compensation.

Who Makes The Decisions Of Federal Maritime Commission?

Five commissioners are responsible for the day-to-day operations of the commission. The president is responsible for approving their appointment after submitting by the legislature arm of govt.

The commissioners are responsible for coming up with decisions about the operation of the commission.

What Are FMC Regulations For Ocean Freight?

FMC regulations refer to regulations that govern ocean shipping intermediaries’ activities in the US. FMC controls two classes of ocean shipping intermediaries.

That is non-vessel operating common carriers and ocean freight forwarders. The regulations define these two classes to facilitates the identification and follow-up processes.

These regulations govern the license requirement and procedure and the applicable fees and compensation.

Who Are The Service Providers Outlined In The FMC Regulations?

There are three primary service providers that FMC regulations outline, that is:

Non-vessel Operating Common Carrier

It refers to an ocean carrier whose services include shipping goods using their bill of lading. These service providers do not necessarily have to operate their shipping vessels.

They can lease space from other ocean carriers for the shipping of their goods.

Unregistered Non-vessel Operating Common Carrier

Unregistered non-vessel operating common carriers are those that do not have an FMC license. It means they cannot ship to and from the US.

They, therefore, have to rely on non-vessel operating common carriers who are registered for them to ship their goods.

Unregistered NVOCC cannot use their ocean freight rates when shipping which denies them exclusive freight rates.

When searching for registered NVOCC, one ought to look for the experience and services before engaging them.

Freight Forwarding Services

These are services that freight forwarders offer on behalf of cargo owners.

They undertake to ship, package and deliver customs clearance of goods on behalf of importers.

Once they have goods to ship, engage the services of freight forwarders search for NVOCC, who have US registration.

What Is FMC License?

It refers to a license that allows you to ship to and from the US via the ocean.

Who Needs An FMC License?

Anyone who wants to ship to and from the US should have an FMC license. Such persons include VOCC, OTI, freight forwarders, and NVOCC.

VOCC are usually big shipping companies like MSC and Maersk that offer ocean freight to and from the US.

An OTI is an intermediary that has its base in the US. It has an FMC license and is free to engage either as a freight forwarder or an NVOCC.

Freight forwarder accepts responsibility for shipment of goods to and from the US on behalf of the owner.

An NVOCC issues their bill of lading which does not follow a standard procedure and has an FMC approval.

NVOCC may have their containers for shipping or not.

All these parties are involved in shipping to and from the US hence require an FMC license.

How Can I Get An FMC License?

You can get an FMC license in two ways, depending on where you are based. That is:

US-Based NVOCC And OFFS

If you have a presence in the US, the first step involves appointing qualified personnel. A three-year experience is critical when searching for a qualified individual.

The person should have gained the experience while working in the US.

The individual should also have a stake in the business, depending on the business structure.

The next step involves submitting a soft copy of form FMC-18. It facilitates the issuance of certificates allowing you like an ocean shipping intermediary.

After submitting the papers, you have to pay the necessary fees associated with the authority. You have to make the payments electronically through their online portal.

Non-US Based NVOCC

You have to register your unlicensed non-US-based NVOCC before seeking a license. It involves submitting form FMC-65 through their email.

The next step is to submit form FMC-1 which is for carrier tariff registration. A tariff publisher can help you in submitting this form.

You can email them for clarification concerning this form. Once you have registered, the next step is to seek a license.

It is opening and operating an unincorporated branch presence in the country. You also have to appoint a qualified person to operate the branch.

Such a person should have a minimum of three years handling OTI in the US.

The next step is to submit the form FMC-18 electronically. You have to prepare your paper worksheet in advance before the electronic application.

The lasts step is to submit your license application fee via a credit card. You can do this using their online payment platform.

What Are The Requirements For FMC Licensing?

The following requirements are essential before seeking an FMC license:

Experience

You need to have a minimum of three years working as an OTI in the US. You should also demonstrate that you have all the requirements to operate OTI activities.

What Is An OTI Or NVOCC Surety Bond In FMC Licensing?

An OTO or NVOCC surety bond refers to a given amount that OTI or NVOCC must deposit before carrying on with activities.

The purpose of this bond is to ensure these parties comply with the ocean shipping reform act and the FMC regulations.

The amount ranges between $50,000 and $150,000. There are different types of surety bonds that are applicable for FMC licensing.

What Are The Types Of Federal Maritime Commission Bonds?

The primary bonds are the OTI bond, NVOCC bond (the US-domiciled), and NVOCC bond (non-US domiciled).

Some of Federal Maritime Commission bonds available are:

OTI Bond (Ocean Freight Forwarders)

It is a type of surety bond that you get if you are operating an Ocean Freight Forwarder.

Its alternative name is the FMC-48 surety bond.  The amount that you are to pay for this type of bind is $75,000.

It is possible to cancel an OTI bond either by you as an OTI or the surety. In practice, this is effective after thirty days upon receiving a cancellation notice.

However, once cancellation takes effect, it means you don’t have the financial capability to operate OTI. The consequence of this is to cancel your FMC license.

NVOCC Bond (U.S Domiciled)

It is a type of bond that one gets if they are operating from the US.

This type of bond undertakes to pay for damages to your goods during the shipping process by an NVOCC operator.

The shipping process includes packaging, loading, and unloading to a shipping container and transporting.

The bond also covers fines that FMC levies on your cargo for violation of the regulations.

You have to pay an NVOCC bond which is equal to $75,000 for this bond.

NVOCC Bond (Non-U.S. Domiciled)

If your NVOCC is not present in the US, you have to pay for this type of bond.  It covers damage to the goods during the shipping process.

The essence of this is to protect both the shipper and customer from exploitation and ensure a fair charge.

What Are The FMC Surety Bond Requirements?

The FMC surety bond requirements depend on the type of bond you are applying.  You can summarize these requirements as follows:

Licensed US-based OFFs And NVOCCs

If you are a licensed US-based OFFs or NVOCCs should prove their financial responsibility. Such proof should be in the form of taking a surety bond.

It is worth $50000 if you are an ocean freight forwarder or $75000 if your license is for NVOCC. You should also submit for all your unincorporated branches operating OTI services in the US.

Licensed Non-us Based NVOCCs

If you are a licensed non-us-based NVOCCs, you have to submit a surety bond equaling $75000. It assures FMC of your financial responsibility and ability to handle your shipping.

Non-us-based NVOCCs Licensed

If you are not based in the US but have the license, you should submit proof of financial responsibility to FMC. Such evidence is in the form of a surety bond of around $150000.

You should also use a licensed OTI if you are carrying out OTI services in the US. The licensed OTI is responsible for your shipping process while in the US.

What Does The FMC Surety Bond Protect Against?

The primary purpose of the FMC surety bind is to offer protection to goods that you are shipping as an OTI.

Such protection covers damage to the goods on transit which reduces risk to the owners.

FMC surety bind is one of the requirements that you should prove before shipping. You, therefore, should present it to the relevant authorities.

This surety bond covers settlement or obligation arising from a valid claim relating to damage to the shipment.  There is also a pay for the penalty that goes to FMC.

What Are The Duties And Responsibilities Of Ocean Transportation Intermediaries According To The FMC?

The primary duties and responsibilities of Ocean Transport Intermediaries are to ensure smooth shipping to and from the US. Such shipping should comply with the regulations of FMC.

For instance, they can act as freight forwarders and consolidate goods for shipping from individuals who lack a valid FMC license. They can also act as NVOCC in reducing interests before loading them to a carrier for shipping.

It ensures shippers to and from the US do not violate the FMC regulations, which attract hefty penalties.

What Is FMC Rate?

FMC rate is the amount that FMC charges for shipping to and from the US. It also refers to the penalty that FMC imposes on those who violate the FMC regulations.

What Is The Difference Between An NVOCC And A Freight Forwarder?

You have to understand three vital points to understand the difference between a freight forwarder and an NVOCC.

These points are shipping documentation, specific roles, and the containers they handle.

Freight forwarders have their bill of lading whose standardization depends on the FIATA documentation.

The bill of lading for NVOCC does not rely on any standardization process.

The role of a freight forwarder is mainly acting as agents to shippers. NVOCC act as carriers to the shipper or as shippers to carriers.

NVOCC are middlemen between shippers and carriers, which helps in smooth shipping.

Freight forwarders do not own shipping containers or equipment that facilitates the shipping process.

NVOCC owns their shipping containers and equipment, thus making it easier to ship via them. The ownership of these containers and equipment reduces the overall price of shipping.

What Is The Advantage Of Working With An FMC Licensed Ocean Transport Intermediary (OTI)?

Working with an FMC licensed Ocean transport Intermediary offers numerous benefits for all parties involved in shipping. Such benefits include:

Acts As An NVOCC

An FMC licensed OTI handles the same functions as an NVOCC. For instance, they can engage carriers for shipping your goods to and from the US.

They also have the right to trade your sea from the US to NVOCCs or potential clients. It reduces the overall cost of shipping.

Flexibility Rates

An FMC licensed OTI is capable of engaging overseas agents and using their ocean rates. These rates are usually competitive, which can result in a faster filling process in the US.

Improves Standards

FMC licensed OTI indicates approval by FMC; hence you have the quality assurance aspect of your business. It increases your clientele base since most companies trust your process.

They also have a formal point to lodge complaints if they feel you are not treating them accordingly.

What Are The Restrictions Of Non-Licensed Agents?

The main restriction for non-licensed agents is how they perform their activities. They cannot sell ocean freight to and from the US using their ocean freight charges.

Non-licensed agents do not have authority to using ocean shipments across the US. In case it occurs, they only act as freight forwarders or booking agents.

As a non-licensed agent, you cannot book an ocean freight to and from us using your carrier contract rates.

What Are FMC Violations?

FMC violations refer to activities that contravene the rules and regulations of FMC. Any party involved in shipping to and from the US can violate these rules and regulations.

It includes OTI, NVOCC, and freight forwarders. The consequences of violating these regulations vary depending on the degree of violation and the party breaking them.

What Is The Punishment For Violating The Federal Maritime Commission Rules And Regulations?

There are different procedures for punishing violators of FMC regulations. It depends on the party that violates these regulations and the extent of the violation.

Common punishment that you can get for violating these regulations include:

• Charging a fee that does not exceed USD 1,000,000 for every voyage of a particular carrier.
• Suspension of part or entire contract of a carrier includes any preferential treatment agreement that such a carrier has with FMC.
• FMC has the right to suspend cancel the rights of an OTI to operate any agreement it has with the commission. It includes the use of a carrier’s tariffs and service contracts.
• FMC may also take other considerable actions which limit the activities of the violators for a specified time. It is to punish such violators with the intention of them rectifying their mistake.

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In this guide, you will find all information you’re looking for about Forest Law Enforcement Governance And Trade (FLEGT).

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

What Is FLEGT?

FLEGT, otherwise known as Forest Law Governance and Trade, refers to an action plan whose main purpose is to curb illegal logging.

It is achieved by enforcing proper forest management and advocating for trade on timber that is legally produced.

Several countries globally are geared towards controlling unlawful logging to maintain forests. You can find additional information about this on the FLEGT website.

What Is The EU FLEGT Action Plan?

EU FLEGT published an action plan in 2003.

It contains measures meant to fight unauthorized logging in forests and only promote trade on timber that has been legally produced.

The measures apply to the EU and its member states together with partner countries.

What Is A FLEGT Certificate?

A FLEGT certificate refers to a document that confirms that timber or timber products being exported.

That is, having been produced as per the required laws and regulations of a particular country.

Keep in mind that this only applies to countries that have ratified a VPA (Voluntary Partnership Agreement) with the EU.

The FLEGT certificate is not mandatory, and therefore individual companies can choose whether or not to implement it.

In as much as certification facilitates exercising due diligence, it’s normally not linked as proof of legality. Instead, a valid FLEGT license is considered as proof of legality.

How Do I Get A FLEGT Certificate When Shipping Into The EU?

You can acquire a FLEGT certificate from your local licensing authorities if your country has ratified a FLEGT VPA with the EU.

In addition to that, the issuing country must have a FLEGT licensing scheme that is operational.

The Voluntary Partnership Agreement partner country should have a Timber Legality Assurance System to start providing licenses.

It’s worth noting that the European Union and the VPA partner country have to confirm before the commencement of FLEGT licensing.

Normally, the EU restricts any import that lacks the FLEGT license. It is a legal requirement when shipping timber and timber products into the EU.

What Is A FLEGT License?

A FLEGT license can be described as a document that certifies the production of timber and timber products.

It is as per the laws and regulations of a particular country of export.

Timber products that have this type of License are considered to have met the EU Timber Regulation.

A company or any operator dealing in timber and timber products in the EU market must adhere to the European Union Timber Regulation.

It is meant to prevent any illegal timber or timber products from accessing the EU market.

Issuing of the FLEGT license applies to countries that have a timber legality assurance system in place.

The partner country also needs to have ratified Partnership Agreement with the European Union.

What Is A Voluntary Partnership Agreement In Relation To FLEGT?

A voluntary Partnership Agreement refers to a strategy implemented by the EU to fight illegal logging.

A country outside the EU gets into an agreement with the European Union for the exportation of timber.

The main goal for VPA is to ensure that any exported timber entering the European Union has been legally produced.

In addition to that, the Voluntary Partnership Agreement works towards preventing unlawful logging by a partner country.

It is achieved through ensuring proper management and governance of the forests.

In as much as VPA is considered important, it is not mandatory for the timber-exporting countries.

Nevertheless, you need to understand that it is enforceable on both sides as soon as VPA has been implemented.

Under this partnership, the partnering countries must have a system that confirms the legality of the exported timber.

Which Countries Have A Voluntary Partnership Agreement?

Only six countries are confirmed to have a Voluntary Partnership Agreement with the EU. Some of these countries are not limited to;

• Ghana
• Cameroon
• Republic of Congo
• The Central African Republic
• Liberia
• Indonesia

November 2016 was the first time Indonesia provided FLEGT licenses making it the first country to issue the licenses among the ones mentioned.

With time, other countries have shown interest in joining the Voluntary Partnership Agreement with the EU. These countries include;

• Malaysia
• Democratic Republic of Congo
• Vietnam
• Guyana
• Honduras
• Cote d’Ivoire
• Gabon
• Laos
• Thailand

Does A FLEGT License Cover One Shipment Or One Container?

As stated in the Forest Law Enforcement Governance and trade regulation, a FLEGT license is meant to cover one shipment.

Every shipment is covered by one import declaration in the European Union. However, it might be inclusive of several shipping containers.

Do Shipments That Are Split Among Operators Require Multiple FLEGT Licenses?

The time when the shipments are split will determine whether or not they will require multiple FLGT licenses.

FLEGT implementing Regulation, one FLEGT license should be declared to one customs office or custom declaration.

As soon as the shipment splits before the exportation begins, each of the different shipments will require new FLEGT licenses.

Will cancel the split before the initial FLEGT License before the shipments.

If the shipment has already exited the country, and the split occurs.

The importer responsible for the FLEGT license will be required to declare the shipment and, after that, proceed to split it.

If the importer decides to split the shipment before declaring it, the information in the FLEGT license and the shipments will vary.

In such a circumstance, the EU FLEGT Competent Authorities will hold the shipment, thus preventing it from accessing the European Union.

Can A Single FLEGT License Cover Multiple Containers?

Yes, a single FLEGT license can cover more than one container since a single shipment might have several containers.

For instance, you are shipping 15 containers, and all these containers have a similar Bill of Lading covering them.

One FLEGT License will be enough to provide information about the contents being shipped in the 15 containers.

A single FLEGT is sufficient to cover several containers being shipped to the EU at different times and in different vessels.

As much as the containers will be delivered at different ports, they shall all be declared to the same EU customs office.

What Are The Benefits Of Importing Timber And Timber Products Covered By The FLEGT License?

Importing timber and timber products covered by the FLEGT license comes with several benefits. Some of these are not limited to;

• The FLEGT license confirms that the timber and timber products being imported have met the EU Timber Regulation requirements.
  Meaning they are legally extracted and produced.
• Saves on costs and time – This comes from operators not needing to exercise further due diligence on their FLEGT-licensed products.
• Proof of legality – When exporting timber products to the European Union, you must prove the legality of your products by having a FLEGT license.
  This License makes it easier for you to conduct your timber and timber product business across the European Union countries.
• It makes importation for timber and timber products easier across the EU.
• Promotion and strengthening of legal trade – FLEGT license promotes legal production of timber and timber products and thus promotes legal trade.

What Timber Products Does A FLEGT License Cover?

Any timber product that is exported to the EU should have a FLEGT license.

The timber products need to be included among items of a VPA between a partner country outside the EU and the EU.

Some of the timber products covered buy by FLEGT license in all Voluntary Partnership Agreements are not limited to;

• Plywood
• Logs
• Railroad sleepers
• Sawn timber
• Veneer

Other products that have been added by VPA countries in their VPA scope include;

• Packing cases
• Pulp and paper
• Builders’ joinery
• Furniture
• Fuelwood
• Carpentry of wood

Where Can I Find FLEGT Licensed Products?

You can find FLEGT licensed products in countries that are part of the European Union.

In addition to that, you can also find in countries that have implemented a Voluntary Partnership Agreement deal in FLEGT licensed products.

That’s said, countries such as Indonesia, Liberia, Ghana, Central Africa Republic, Cameroon, and the Republic of Congo deal in FLEGT licensed products.

The list keeps on increasing as more countries show interest in joining the Voluntary Partnership Agreement.

Does The EU Allow The Importation Of Timber Products Not Covered By A FLGET License?

All timber products exported to the EU are required to have a FLEGT license.

Failure to provide the License will have the state authorities prevent your products from accessing the market.

Suppose your timber products will be from a VPA partner country with a FLEGT system in place.

If they lack a FLEGT license, they will be denied entry into the market.

It doesn’t matter if they have been listed in the VPA product scope. You will need a license to operate your timber business in the EU.

On the other hand, your products will be allowed access to the EU market if;

The products in question are not included in the scope of the product, or you are exporting them from a country.

That is yet to implement FLEGT licensing or is not a member of the Voluntary Partnership Agreement.

However, you will be required to abide by the EU Timber Regulation (EUTR) requirements if EUTR covers your products.

The EUTR ensures that illegally extracted timber and timber products are prohibited from accessing the EU market.

Indonesia was the first country outside the EU to start issuing FLEGT licenses, after which other countries started joining.

What Is The Procedure For Handling FLEGT-Licensed Products?

An annexe explaining Procedure for handling FLEGT licensed products is included in the FLEGT Voluntary Partnership Agreement between the EU and the partner country.

The annexe describes the border control measures in the European Union and the procedures to be followed by the EU authorities.

Once a FLEGT licensed timber or timber products shipment arrives from a VPA partner country.

The EU authorities follow the procedures as per the EU FLEGT regulation of 2005 while at the same time implementing the 2008 regulation.

These regulations state that as soon as a VPA country commences implementing FLEGT licensing.

The EU authorities must confirm that timber product imported from the VPA partner country. Which fall under the VPA product scope is FLEGT licensed.

In any case, the products fail to have a FLEGT license. The authorities will prevent the entry of the products to the EU.

As described in the VPA annexe on EU procedures, the following are the two main types of checks performed by Competent authorities.

Physical checks – Physical checks are done per the usual procedures conducted by EU customs authorities to ensure that the shipment is in line with the accompanying licenses.

Documentary checks -Documentary checks are done to confirm the authenticity of the FLEGT licenses.

In addition to that, these checks ensure that FLEGT licenses are in the appropriate format, are valid, and the dates are correctly stated.

In any case, the Competent Authority doubts the FLEGT licenses of the shipment.

They are free to ask for further explanation from the VPA partner country.

It is important to note that if any doubt arises regarding the validity of the FLEGT license, the shipment can be detained or its release cancelled.

How Do Customers Identify FLEGT-Licensed Timber Products?

You should never expect from FLEGT licensed products a logo, label, or brand associated with it.

I know you might be thinking about how then do importers recognize FLEGT licensed products.

Here is a simplified explanation to it;

FLEGT licensed products cannot be identified using a logo or brand because FLEGT licenses are documents that are administered to every shipment.

We can’t compare them to customer certificates as you might think.

As soon as a country starts implementing FLEGT licensing, the EU will only accept imports with a FLEGT license from that specific country.

The type of product should fall within the product scope of that country’s FLEGT VPA with the EU.

With that in mind, a consumer certificate or logo is not much needed.

Nevertheless, you should know that some consumers might inquire about imported products from other countries that have implemented the FLEGT licensing system.

By so doing, consumers support the efforts made towards ensuring the protection of forests and illegal logging.

Does FLEGT-Licensed Timber Lose Its FLEGT License If Processed In Another Country?

Yes, it does. Allow me to explain this further.

For instance, you decide to export timber and timber products from a country that has implemented FLEGT licensing to one that lacks.

Once the timber arrived in the processing country and converted to furniture.

It will lose its FLEGT License if you decide to export it to the EU.

When processing your timber in a non-VPA country, it is important to conduct due diligence per the EU Timber Regulation.

However, if you decide to ship your FLEGT licensed timber to the EU via a third country such as China, there are possible chances of maintaining the License.

You will not lose the validity of the FLEGT license for your timber products if they don’t get mixed with other products while in China.

What Factors May Affect The Validity Of A FLEGT License?

The Competent Authority is responsible for ensuring that the FLEGT license is valid. The validity of the FLEGT license can be affected by the following factors;

• Authenticity -The FLEGT license should be issued by the Licensing authorities in the VPA partner country.
• Accuracy – The License should match the shipment and accompanying documents in regards to the information provided therein.
• Processing of timber in another country – When importing a FLEGT licensed timber or timber product to a country that lacks FLEGT licensing. You might lose the validity of your FLEGT license if the timber gets processed.
  With that in mind, you need to choose the best to export your timber for processing to other non-VPA countries.
  Exercising the due diligence as required by EUTR before exporting the product to the EU is very important.
• Availability of timber legality assurance system – Any country that wishes to start issuing FLEGT licenses is required to have a timber legality FLEGT assurance system.
  This is as stated in the Voluntary Partnership Agreement (VPA).

Who Issues FLEGT Licenses?

FLEGT licenses are issued by the FLEGT licensing Authorities in the timber producing VPA partner country.

The timber products need to be listed in the VPA annexe, and the destination of export should be the EU.

The EU will require timber and timber products to have FLEGT licenses to prove the legality of timber extraction.

How Do I Determine The Credible Of A FLEGT License?

Note that the Timber legality assurance system accepted by the EU and the VPA partner country promotes FLEGT licensing.

The EU and VPA partner countries have to seek consultation with government stakeholders, civil society, and the private sector.

Some of the inclusions of a VPA country’s timber legality assurance system is not limited to;

• Supply chain controls – Supply chain controls are meant to follow up on the wood extraction and ensure that legal products are not mixed with illegal ones.
• Definition of legality
• The Procedures used to verify compliance with the supply chain controls as well as the legality definition.

Additionally, the Timber legality assurance system conducts independent audits that follow ISO standards to detect any system failures.

The auditors provide the VPA joint implementation committee with the audit results.

Civil society goes the extra mile to visit the field in some VPA countries and observe the operations.

In case they notice any system loopholes and potential fraud, they inform the decision-makers.

For FLEGT licensing to be implemented in a country, the timber legality assurance system must be functioning as explained in the VPA.

To confirm this, the EU and the VPA conduct a joint assessment to see that all requirements are met.

What Are The Consequences Of Importing FLEGT-Licensed Products From Illegal Sources?

The likeliness of facing the consequences of importing FLEGT licensed products from illegal sources will vary.

It will have based on the operator’s knowledge about the legality of the product.

A good example; if an operator did not know about the product’s illegality or reason to doubt illegality. It could rule out that they acted in good faith.

Nevertheless, if it is evident that the operator was fully aware of the illegality, competent authorities will not hesitate to penalize the operator.

The main purpose of the FLEGT license is to ensure that products are legal. In any case, they find illegality. The FLEGT licensing authorities have the right to revoke the License.

Can The Import Country Differ From The Destination Country As Stipulated In The FLEGT License?

Yes, they can. The European Union is considered a single customs area, and the destination and the importing country can differ.

For example, shipment listing in a trading company that operates in Gioia Tauro, Italy, as a destination can be customs cleared in Germany.

Therefore, information about the destination country’s FLEGT license is indicative and can only be used by the exporting authorities.

Why Is It Important To Match The Information On My Import Declaration With The FLEGT License?

Information on your import declaration should complement the one in the FLEGT license. Failure to this might result in your shipment being held by the EU Competent Authorities until a solution is reached.

The difference between the weight and volume of your shipment and the weight and volume stated in the FLEGT license should not exceed 10%.

If this limit is exceeded, the EU Competent Authorities will hold the shipment as they inquire for additional VPA partner country information.

What Are The Effects Of FLEGT On International Shipping?

FLEGT has impacted international shipping positively.

It has controlled illegal logging and shipment of illegal timber products and enhanced international trade between different countries across different continents.

However, FLEGT has become a barrier for some to export timber and timber products to the EU due to the requirements.

Are Operators Required To Send FLEGT Licenses To Their Local Authorities?

Yes. The operators’ responsibility is to send the FLEGT license to their local authorities by sending the copy issued by their suppliers.

What Is The Function Of FLEGT Competent Authorities?

FLEGT Competent Authorities are located in the European union member states, and they carry out the verification of FLEGT licenses.

They ensure that the FLEGT license is as per the EU FLEGT regulation.

Most EU countries have one Competent Authority in charge of both FLEGT and the EUTR Regulation.

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Probably you’re wondering what Amazon return pallets are.

This guide explores everything you should know about Amazon return pallets.

Whether you want to know what they are, benefits, or tips for up scaling Amazon return pallets, you will find it right here.

Keep reading.

What Are Amazon Return Pallets?

Amazon return pallets refer to Amazon inventory that has been returned by buyers within three months after purchase.

The returned items can either be fully functioning or faulty and sometimes it is difficult to know what’s contained in the pallet.

Despite these, most sellers choose to dice the coin and hope that they land on the best pallet.

Liquidation companies provide interested buyers with the opportunity to buy Amazon returned pallets at good prices.

What Happens To Amazon Return Pallets?

Once returns are received, they are not put back on the virtual shelves owing to the procedures.

They need to undergo before they are ready for purchase again.

Not only will it cost to inspect the packages but also repacking and relisting them would be quite a hassle.

Once Amazon receives the returned pallets, it sells to liquidation companies.

Liquidation marketplaces in collaboration with Amazon resell the merchandise to interested buyers who are required to bid on the pallets.

This facilitates the accessibility of merchandise by small-medium-sized businesses from online marketplaces.

Alternatively, Amazon also sells the items themselves at the warehouse.

However, pallets sold in the Amazon warehouses are often opened and thus you have no proof if they are used or not.

The good news is that not all returns are damaged and you can easily get quality merchandise at good prices.

This is because some of the returned items are either as a result of the buyer no longer needing the item.

Sometimes, might be expecting the package to be different.

Meaning, the returned merchandise will still be new and in a sealed condition.

This doesn’t mean that you should always expect them in good condition.

We can describe this as a risk since it might be profitable or not.

If the items in the pallets are damaged, the buyer will incur losses and end up disposing them.

However, reselling of the returns is not always the case. Sometimes they might be thrown away or might remain in the warehouse.

According to a study that was conducted by a Canadian News outlet CBC marketplace, only four among 12 returned packages were successfully resold.

Several of the returned products end up laying in warehouses.

Why Does Amazon Liquidate Customer Returns?

Liquidation of customer returns is done since it is cheaper to dispose of merchandise.

Compared to repackaging, listing, placing them back in their virtual shelves, and shipping again which is expensive.

In addition to that, Amazon also liquidates customer returns to create room for new merchandise.

What Are The Pros And Cons Of Amazon Return Pallets?

Just like any other business, dealing with Amazon return pallets has its fair share of benefits and disadvantages.

Being aware of such will help you gauge between the threats and the good side of Amazon return pallets.

To begin with, you need to make thorough research and identify a suitable supplier.

Read through the available online reviews from previous clients as well as testimonials.

Ensure that you are satisfied with the supplier’s ratings and reviews.

One of the critical mistakes buyers make is having complete trust in the “better” suppliers on the quality and worth of products.

If you do so, there’s a chance you will receive exactly what you never wanted.

Consider both sides of the coin and get to understand what actions to take if by chance the contents are substandard.

Sometimes the items contained in the pallets happen to be damaged or defective.

In addition to that, the returned items cannot be sold again as new in as much as the items are in their original state.

Despite the cons, Amazon return pallets are quite advantageous.

Items in the pallets are often sold at lower costs as compared to retail or wholesale prices.

Owing to this, you are set to increase your profit margins and in turn, grow your business.

Not forgetting that the lower prices place you in a better position to effectively compete in the market.

Several buyers are attracted by good prices on quality items.

If you are already setting this standard, your business is set for impressive growth.

In addition to that, you are free to select your merchandise, and thus with proper knowledge and skills in selection.

You can be sure of better returns from your sales.

What Is The Difference Between Amazon Return Pallets And Overstock Pallets?

Amazon return pallets are returned packages from Amazon buyers.

Overstock pallets result from ordering excess merchandise that exceeds the demand.

To make sales off overstock merchandise, they are often sold 25%-50% lower than the wholesale price.

Can I Buy Amazon Return Pallets?

Yes, anyone can purchase Amazon return pallets either through liquidation companies or directly from the Amazon warehouse.

It’s worth noting that Amazon only sells to businesses and therefore if you are starting, purchasing from liquidation companies would be ideal.

What Are Some Things To Know Before Buying Amazon Return Pallets?

Buying Amazon return pallets always sounds like a profitable idea.

Nevertheless, for it to be profitable you need to be clever at decision making.

Some important factors that might otherwise influence your general profits to be considered.

Below are some important tips to know before purchasing Amazon Pallets;

Avoid Beginning Your Purchase With Electronic Products

Not only will you need more capital but also there are higher chances of the products not working.

Electronics unarguably bring huge profits to any business and this entices many to purchase electronic pallets.

You need to have a skillset for your electronic purchase to reap profitable returns.

Shipping Cost

Sometimes the freight cost can end up being costlier than your pallet.

Thus a liquidator that’s closer to your home is beneficial

Manage Expectations

Having higher expectations might sometimes turn into frustrations.

I don’t mean that you shouldn’t have expectations at all.

You should also consider the possibilities of the items being damaged or not packaged well.

With that in mind, you should strategize on how you will send the packages to the buyer and how to manage their expectations.

Start Small

It’s cautious to take one small step at a time as you try to understand your provider’s services and the quality of items.

To achieve this, you want to buy a small pallet and experiment with how efficient the delivery will be as well as the quality of the pallets.

Remember, the more the merchandise the higher the risk.

Avoid Using Amazon Returns And Use Your Spare Cash

Since purchasing pallets is a risk that you are planning to indulge in, it’s safer if you use spare cash.

This is because you might either have higher rewards or significant losses.

Where Can I Find Amazon Return Pallets?

You can find Amazon return pallets through liquidation companies.

This is the best way to purchase your pallet.

Look for a reputable seller by going through past reviews and enquiring from their past clients if possible.

This will help you get a clear picture of the company’s services and pallet quality before making your purchasing decision.

Which Is Better Between Buying Amazon Pallets Online Vs Physical Location?

You can either choose to buy your Amazon pallets online or physically and both ways are good depending on your preferences.

However, most large retailers are online-based and sell pallets via online auction sites.

This explains why many prefer purchasing Amazon pallets online since it’s more convenient too.

How Does Buying Amazon Return Pallets Work?

Just like you would shop for anything, the larger your purchase the less it will cost you. Unfortunately, buyers are never allowed to inspect the merchandise and therefore you have no idea what’s contained inside.

This might be exciting or not depending on different buyers who wish to roll the dice!

However, some boxes come marked making it easier to speculate the type of items contained in the box.

Take into account that the items can be in any condition whether functional, partly functional, or completely damaged.

Therefore, it’s your responsibility to single out the best from the rest.

If you bid on a pallet and win the auction, you can request for your merchandise to be shipped directly to the warehouse.

Nevertheless, this would be economically reasonable if the Amazon liquidation is located near your neighborhood.

How Do I Buy Return Pallets Directly From Amazon?

Buying your return pallets directly from Amazon is considered the best way.

It’s worth noting that the auction season is often conducted after holidays when most people are returning unwanted gifts.

You can place a bid on the return pallets on any online liquidation marketplace.

Once you win, the merchandise can be shipped to your warehouse.

You can purchase Amazon return pallets from the Amazon liquidation companies.

Here are some of the places to purchase Amazon return pallets;

• Amazon Liquidation Auctions
• com
• BULQ
• com
• com
• Wibargain
• GovDeals

Are Amazon Return Pallets Worth It?

Yes.

Once you buy from a reputable online liquidator you are set to get quality merchandise from leading retailers that can make you huge profits.

Additionally, the pallets sold online are often at reduced prices as compared to the cost of buying from traditional wholesalers.

Meaning, it’s also easier for you to provide a wide range of different budgets for your customers while at the same time making profits.

Not forgetting that this will help you compete effectively with your other competitors placing you on top of the game.

How Much Do Amazon Return Pallets Cost?

The cost of Amazon return pallets ranges from as low as $100 to as much as $800 or more. The cost depends on factors such as size, brands, and weight just to mention some.

Can I Make Money Selling Amazon Return Pallets?

Yes. Once items are returned to Amazon, they are sold to liquidators who end up selling to anyone interested.

The exciting part is that some of these pallets might be of high value and sold very affordably.

Therefore, you gain significant profits by selling the contents in the pallets.

How Can I Make Money Selling Amazon Return Pallets?

Many people are making money by selling returned Amazon packages and here is how. Once the pallets are returned, Amazon sells to Liquidators who in turn sell to interested buyers.

While some pallets might contain defective items, others have quality items and go for cost-effective prices.

If by chance you get one of such, you are set to make huge profits after selling items in your pallet.

Alternatively, you can repair the faulty items and still stand a chance to profit from their sale.

This might be an ideal way to start a business that sells products on Amazon as it doesn’t involve much expenditure if researched and done appropriately.

Is It Ethical To Resell Amazon Return Merchandise?

The answer to this will depend on how the liquidator claims about the state of the product versus the condition it’s sold at.

For instance, if the liquidator claims that the product is new but delivers a used one, this directly reflects a negative picture of the brand.

To make it worse, the product risks being suspended by Amazon.

Doing this is unethical as it goes against Amazon’s guidelines.

Are Amazon Return Pallets Good Quality?

In as much as 45% to 70% of Amazon returns are received in good quality and unused, the remaining percentage can be broken or damaged.

However, you can utilize your skills and knowledge if you are a handy person and fix the damaged parts which you can later sell and make profits.

In addition to that, you can use one faulty item as spare parts for other items of the same kind.

This way you will restore the product’s quality to a profitable one.

Most importantly, select a reputable liquidator and ensure that you conduct thorough research before deciding to purchase a pallet.

What Are Tips For Upscaling Amazon Return Pallets?

Amazon return pallets can either be ready for retails or need some repairs and thus you would want to upscale the items as much as possible.

To achieve this, here are some tips you can consider;

• Inspecting and grading – Inspect your products and ensure that you sell them as advertised.
  Some of the product categories defining the condition of the product include the following;

1. New factory-sealed -These are items are new and sealed in their original factory plastic wraps.
2. Refurbished -Refurbished products go through repairs, inspection, accessorizing, repackaged, and finally put on sale.
3. New open-box -In as much as this merchandise is new and in good condition, it has been opened.
4. Used – Used merchandise might not only have visible wear and tear but also scratched.
   Luckily, they are fully functional.

Never forget to exclude the manufacturer’s warranty as it might be invalid.

• Repair & refurbishing – Some items come in faulty conditions and therefore repairing them will bring back their value.
  If several components from similar models are faulty, the parts of one of the items can be used as spare parts to repair the others.
• Repackage – If the product’s packaging is damaged it’s important to find one that will fit the item.
  Packaging is an essential factor if so you want to improve the item’s value and make sales.
  That said, try to get a packaging that is original quality or settle for pristine plain packaging.
• Sort and bundle products that can sell together.
• Re-accessorize by buying any missing parts.

What Are Mystery Vs Manifest Amazon Return Pallets?

Mystery Amazon return pallets have scarce to no information regarding the contents inside the pallet.

At most, you can only know which category the items fall under and this can range from beauty, electronics, clothes among others.

Manifest pallets provide additional information such as the name of the item, suggested retail value, quantity, and product description.

Mystery pallets are often cheaper as compared to manifest pallets and it’s easy to tell why. With a manifest pallet, you are aware of what you are about to purchase and this raises its value.

Can I Sell Amazon Return Pallets On Amazon?

Yes. You are allowed to sell liquidation products as long as you follow Amazon guidelines.

One of the key guidelines restricts reselling liquidated items as “New”.

In as much as the product is fully functional with no damages all liquidated items are required to be sold as used items and not “New”.

How Do I Price Amazon Return Pallets For Resale?

The best way to price your items would be by assessing the market value and listing your products with competitive pricing.

This can either be the market value or a figure below the market value.

The most important factors to consider when pricing your Amazon return pallets are the shipping cost, selling fees, and taxes.

Apart from selling on Amazon, you can sell the items at a thrift store, through your brick-and-mortar business, or at a flea market.

If you sell on Amazon, it’s better to ship your products to an Amazon warehouse that offers shipping services.

At Tj chinafreight, we help you in all you freight forwarding business from China.

Even if you want to ship from China to Amazon FBA, Tj chinafreight is here to help you – contact us now.

If you have any question about forklift, you will find it right here.

This guide covers everything you need to know about forklift such as uses, classification, and safety, among other vital aspect.

So keep reading to learn more.

What Is A Forklift?

A forklift is a type of automotive vehicle that helps to hoist up objects or materials that are heavy for normal humans to carry over short distances.

They are operated by trained personnel who can control the car either while seated or standing.

These vehicles are mounted with finger-like forks that help lift heavy materials.

They are mostly used in warehouses and large storage facilities that offer storage services for huge and heavy cargo.

What Is Forklift Used For In Shipping?

Forklifts have a wide range of usage in different industrial scenarios. However, when it comes to shipping, fork lifts are majorly found in warehouses and dockyards.

Warehouses offer storage services to cargos. As a result, warehouses are bound to receive shipments of different sizes and weights.

This exposes warehouses to receiving heavy cargo unfit for human handling. These forklifts come in handy to help in handling of these types of cargo and facilitating movement of the cargo from one point to another within the warehouse.

Dockyards task forklifts with the function of facilitating movement of heavy duty during loading and unloading exercises.

Thus during loading, forklifts move the cargo to the means of transport and during unloading, forklifts help to move cargo to their dorkstorage destinations.

These cargos are usually bulky and more so heavy. Examples of such cargos include wood and steel shipments.

What Are The Different Forklift Types On The Market Today?

Forklifts come in different types all designed to suit various needs in the market today. These types include:

Warehouse Forklift

From the name, this type of forklift is mostly found in warehouses.

If you have a visual picture of how golf carts look like, then these forklifts should not be hard to recognize them.

They bare a resemblance to the golf carts, however, they come with two forklifts at the front to help in loading and unloading of inventory in warehouses.

Side Loaders

They are a branch of the warehouse forklifts. They are found in manufacturing industries where heavy loads are common.

Additionally, they are easy to operate as the controller stands at the designated side and the side loader helps move or pick the intended cargo.

They are narrow in size hence they can easily maneuver through narrow pathways.

Counterbalance Forklifts

They are another sub group of the warehouse fork lifts. These trucks are mounted with forks at the front.

They easily attend to loads as they are directly positioned to the load that requires the attention of the forklift.

Additionally, they come in 3 wheels, which allows the operator to move in circles if need be.

They also incorporate a stand up design. The stand-up allows the operator to make necessary stops within the warehouse.

Tele Handler Forklift

This type of forklift comes fitted with long extending arms that enable the forklift to operate as a crane. It helps in positioning pallets to higher grounds in warehouses.

Industrial Fork Lift

These type of fork lifts is designed to carry heavy loads in manufacturing industries. It combines the features of the warehouse forklifts and the tele handler.

However, it is narrower in size compared to the warehouse and tele handler fork lifts. Hence easily maneuvers through narrow pathways.

Pallet Jacks

They are small in size intended to help move smaller loads within the warehouse. These type of fork lifts are a perfect fit to use in moving pallets in small and tight storage areas within a warehouse.

Walkie Stackers

They are similar to the pallet jacks. However, they come in a larger size that allows them to move heavier pallets to much higher levels off the ground compared to pallet jacks.

They operate in similar way to pallet jacks. An operator stands behind the stacker and with use of available hands moves the stacker to the desired designation.

Order Picker

This lift resembles the walker stackers. They are able to lift operators to much higher heights to pick the required pallet for customers.

They are also suited to handle pallets of various sizes and types.

Reach Forklift

This type of forklift is designed to reach into compartments and storage racks in ways that normal lifts are un able to do so. It also bears an open compartment that allows the operator to see what the machine is doing.

How Are Forklifts Classified?

Forklifts are classified into various categories as described below;

Electric Motor Rider Trucks:

These forklifts form the first classification of forklifts. They come suited with either cushion tyres or pneumatic tires.

The difference between the two tyres is that as for cushion tyres, they cannot engage on rough road, thus they only operate indoors or on smooth surfaces.

As for the pneumatic tires, they can handle a rough road.

Electric Motor Narrow Aisle Trucks:

From the name, these classification is for forklifts that are narrow hence minimize used space. They are able to move through narrow shelve spaces hence present efficiency and speed in service delivery.

Electric Motor Hand Or Hand-rider Trucks:

These type of forklifts are controlled by hand as outlined in the name.

There is a steering tiller which the operator makes use of alongside other controls on the tiller which helps in the locomotion of the truck.

Rough Terrain Forklifts:

These trucks are well adapted to help carry out their tasks in rough and difficult surfaces. They are mostly used in construction sites.

What Are The Elements Of A Forklift?

There are three commonly known elements of forklifts as described below:

Stability: The trucks are suited with stability triangle located under the trucks. This serves the purpose of ensuring the truck does not trip over while carrying out its functions.

Lift capacity: This is a key element of the forklifts. It describes the maximum weight the forklift can handle in relation to the stability of the forklift.

Load center: This element describes the distance between the fork and the trucks` center of gravity. This is dependent on the weight of the load, the tilt and lift angle of the forklift.

However, this should not be a concern to the operator who observes the designated weight for the forklift.

What Types Of Cargo Can Be Moved With A Forklift?

Forklifts are able to handle pallets and materials such as steel and construction materials from the containers to the desired storage site.

What Types Of Pallets Are There For Shipping?

There are two types of pallets available in shipping. These are the stringer pallets and the block pallets.

Stringer pallets: They have three long pieces of wood that offer support to the cargo. Two of the pieces of wood are arranged on the sides and one at the middle of the pallet.

They offer forklifts two ways of picking up the pallets, hence also known as two-way pallets.

Block pallets: These pallets are supported by pieces of wood at the sides and middle and all edges of the pallet. Unlike stringer pallets, they are four-way pallets.

Forklifts easily move such pallets because no matter which way the forklift desires to move the cargo, the 4-way offers an orientation that supports it.

What Are The Advantages Of Forklifts In Warehouse Operations?

They help in the unloading and unloading of heavy and bulky pallets within a shorter time. Hence they create efficiency in the warehouse hence increasing the productivity of the warehouse.

How Much Is Forklift Price?

Forklifts are pricy. The price range for a standard forklift is between $20,000 and $50,000.

However, the price for other forklifts might be higher than the above range. The price depends on the type of forklift you are purchasing and the technology incorporated.

Should I Lease, Rent Or Buy Forklift?

Leasing or renting a forklift entirely depends on the nature of business you are exposed to. If you are in business that constantly requires you to use a forklift, leasing or renting a forklift is the most cost co-efficient thing to do.

This is because different cargos will require different types of forklifts to use. Hence purchasing numerous forklifts is costly compared to renting.

However, if you infrequently use a forklift, buying might be the best option to avoid incurring unnecessary costs. The aim of your business is to maximize on profits and minimize on costs.

Therefore ensure to choose the best cost efficient way of acquiring a forklift to your business.

How Does A Forklift Rental Work?

A forklift rental allows the user to acquire a forklift at a designated period and later return it to the owner at a fee.

Renting forklifts is somehow similar to leasing.

However, in renting, the forklifts are a little expensive.

This is because, when renting for the forklift, the fee covers all maintenance costs as well as the idle time the forklift is exposed to at the dealerships.

It is advantageous to business owners especially during peak seasons to help move cargo hastily and save time.

It also provides the owner of the warehouse with an opportunity to explore different models to gauge how the productivity of the firm is improved.

What Is The Importance Of Mounting And Dismounting a Forklift?

Mounting and dismounting procedures in a forklift help promote safety to the user while using the forklift. The following safety precautions must be adhered to;

• Always face the vehicle
• Avoid jumping off while alighting form the forklift truck.
• Practice the three-point stance which mandates you to have both hands and one foot or vice-versa in contact with the forklift.
• Wear certified safety shoes which are oil resistant and non-slippery.
• Wear suitable clothing. Avoid wearing loose clothing or dangling jewelry.
• Check the area around the forklift to make sure the floor is free of fluid or other fragments that could cause a slip.

Mounting and dismounting safely from a forklift reduces the risk of injury to the operator.

What Are The Advantages Of Forklift Leasing?

Forklifting attracts the following advantages;

New Technology Advancements:

It allows the leasing party to enjoy benefits of being up to date with current technology.

The intervals of leasing a forklift create an opportunity for the leasing party to explore new models of the fork lifts.

New technologies add unto productivity and safety protocols in using the forklifts hence presenting new worthwhile benefits to the user.

Budget Of Maintenance:

Leasing of forklifts also caters for maintenance costs.

This allows the users to incorporate maintenance fee as a monthly charge of leasing the forklift.

Low Associated Costs:

Leasing a forklift saves business owners from the costly purchase of the fork lifts.

Forklifts are costly, but the business manager can forego these costs by leasing the forklifts for a period of even five years.

These helps minimize costs within the business entity.

They also improve productivity as they are not exposed to events of breakdowns due to the constant changes in the models while leasing. Hence work continues as normal.

When Should I Consider Buying  Forklift?

Buying is a costly event when in need to use a forklift. However, it becomes the most preferred option under the following scenarios:

• If as a manager you wish to possess all capital equipment, buying is the best option.
• Additionally, if as a business entity you have a ready market that can facilitate leasing or renting the forklift, it is best to buy one.
• If your company guarantees a stability that requires the forklift to be in use for over 20 years, it is best to buy a forklift.
• If the amount of money to purchase the forklift is readily available, then buying should be the best option.
• If a company opts to incorporate all capital equipment in its books, buying the forklift is suitable in this case.

What Is The Best Forklift Size?

Forklifts come in different sizes depending on the type and also the functions it is exposed to. Therefore, the best forklift size entirely depends on the type of forklift you choose.

Normally, the standard forklifts have a width of 4 to 7ft and a height that ranges between 8 and 10ft.

However, for narrow aisle forklifts they should be within 5ft in length.

For warehouses, standard counterbalance forklifts should be 13ft wide to facilitate easier turning, and navigation of pallets.

Height is also a factor that contributes to the size of a forklift. As earlier outlined, tele handlers offer the highest height to reach of about 55ft.

However, the standard forklifts can go as high as 10ft and 15 ft.

How Do I Choose The Right Forklift?

To choose the right forklift, below is a criterion that can help,

First of all, determine the right capacity that can handle the cargo you are about to use the forklift on.

This entails determining the amount of weight of the cargo or pallets.

Secondly, determine the amount of weight the ground of the warehouse can sustain. Forklifts are heavy machines and the ground should offer sustainability to the forklift.

Thirdly, the height of the warehouse should be able to accommodate the forklifts.

As earlier outlined, a standard forklift operates between 10 and 15ft height, hence the warehouse height should be higher.

Also be sure to select the forklift based on the most preferred fuel type. There are those that are power operated and those that depend on gas.

Lastly, choose a forklift that can withstand the type of terrain in your warehouse.

There are pneumatic tyres-fit for rough surfaces, and cushion-tyres on forklifts exposed to smooth surfaces.

What Is A Forklift License?

This is a certification presented to OSHA to show that the employer is well trained and equipped to operate a forklift truck.

What Are The Hazards Associated With Operating Forklift Trucks?

There are six hazards associated with forklifts that every operator should cautiously be on the lookout.

Attachments

A forklift comes with various attachments that need to be carefully addressed before engaging the forklift to its functions.

These includes the worn forks, stretched chains and other additional parts that aid the functioning of the forklifts.

Attachments can result to serious injuries if not carefully installed.

As a result, it is important to make a background check of the entire forklift truck to ensure all attachments are strongly attached to the truck.

Fueling

The diesel and propane are the most used type of fuels for this trucks.

Consequently, these type of fuels have a high flammability property that can result to unforeseen fires in a warehouse.

For operators of this trucks, they should avoid smoking or any another fire related activities near the forklifts especially while refueling.

Maneuvering And Speed

Due to the nature of forklifts, the operators most make movements in reverse. This is due to the blockage caused by the cargo being carried.

In busy scenarios, there is the susceptibility of the truck to hit pedestrians especially in the narrow aisles.

The operators of the trucks need to make careful turns when in these environments.

Additionally, high speeds can cause unintended accidents and injuries. Maintaining a low speed is highly advised to the users of the forklifts.

Blind Spots

These are majorly caused by poor visibility caused by poor lighting in warehouse facilities. Blind spots can cause detrimental injuries to the operator.

Ensuring proper lighting enhances visibility and hence helps evade these blind spots. Additionally, closing of potential blind spots can easily facilitate a safe working environment for forklifts.

Loads

Forklifts have a designated amount of load they can withstand. This allows the forklifts to evade scenarios of toppling over due to excess weights.

It is important to adhere to the stipulated weights as they further facilitate the balance of the forklifts.

Floor Conditions

Slippery floor as well as presence of debris that can affect the maneuvering of forklifts pose as a serious hazard in the warehouses.

The ground to which these forklifts are operating in should be even and free from causing accidents.

What Are The OSHA Requirements for Forklift Safety?

OSHA mandates that the following requirements should be fully met when operating a forklift to enhance safety;

As an operator, OSHA requires you to be aware of the type and class of forklift you are using as they all have different operational requirements.

You are also supposed to be aware of the safety hazards exposed to the forklift as earlier outlined in the article.

Employers must have a training program for the operators before they fully engage on suing the forklift.

This must include both formal and practical lessons

Employers must present a certification to OSHA as proof of training and credibility of the operator to safely operate the forklift.

What Is The Importance Of Forklift Safety Training?

A forklift training is exposed to employees or rather the operators who are responsible for the functioning of the forklift.

This training is essential because it equips the operators with all the safety precautions and protocols that they must adhere to.

This improves the safety of the workers while operating the machine.

The training also minimizes costs related to the safety of the employees.

The operator is best equipped with the safety precautions of the machine hence presenting low risks to injuries.

Lastly, the training increases life span of the forklift since employees are trained on how to properly use the forklifts.

They are also trained on what parts to constantly be on the lookout for maintenance.

Do I Need Liability Insurance For Forklift?

Yes. It is a must for every business that uses a forklift on a daily basis to have an insurance liability in place.

The liability can be in the form of public liability or employer liability.

How Do I Know Which Policy To Take For My Forklift Trucks?

If the business has an auto policy, then there will be no need to take another policy to cover for the forklift trucks. This applies when the forklift is classified as a street vehicle.

If you need a cover that guarantees to cover bodily injury costs and the forklift, a general liability policy for insurance is suitable.

The policy totally depends on the costs you want the insurance to cover in case of any hazards.

In case you want to import forklift from China, TJ China Freight team is here to help.

Contact us now for all your freight forwarding needs from China.

Let’s look at another important term in freight industry – fuel surcharge.

If you want to know what it is, calculation process or how it affects shipping from China – then read this guide.

What Is A Fuel Surcharge?

A fuel surcharge is a cost that carriers add your final shipping invoice to over for the fluctuating fuel cost. Fuel often fluctuates, resulting in loss-making on the part of your carrier during the shipment of your goods.

The fuel surcharge helps in mitigating the effect of fluctuation and stabilize the shipping process.

However, the actual cost varies depending on the type of carrier you are using and the type of goods.

Why Do Carriers Charge A Fuel Surcharge?

The price of fuel is relatively unpredictable due to several factors such as demand and OPEC policies.

This causes the price to change, often making it hard for your shipper to determine it accurately.

To ensure the smooth shipment of your cargo, carriers usually add a charge on the shipping cost to cover the unexpected fuel fluctuation.

This charge is the fuel surcharge.

Which Issues Contribute To The Volatile Rise Of Fuel Prices?

The volatility rise in fuel prices is due to several factors. Some of these factors are controllable, while others depend on external forces.

Such factors include:

OPEC Members

OPEC members are those countries that produce oil and therefore affect their overall supply.

Therefore, the decision they come up with has a bearing on the fuel supply and prices.

These members regularly meet to discuss oil demand and supply and control the prices of oil and oil products.

Political Issues

Most of the world oil supply comes from the middle east. However, the political instability of that region causes the price of oil to change.

When there are no fights in the area, then the price remains constant until when instability begins.

Unstable Economic Outlook

An unstable economic outlook causes the price of fuel to drop to meet the demands.

This is because there is minimal cash to purchase the fuel.

However, when there is a positive outlook, the demand usually increases fuel prices.

Demand And Supply

Demand and supply affect the price of oil in the same way as it affects prices of other goods.

When the demand is high, OPEC members tend to reduce the volume of production, which translates to the high price of fuel.

When there is low demand, members agree to increase supply which reduces the price of fuel.

Production And Storage

The production and storage of fuel differ among the OPEC members.

For instance, the production and storage of oil in the US is higher than that of the middle east.

Recent years has seen countries producing fuel store in for future use while reducing the production volume.

Naturally, this affects the overall price of fuel.

What Is The History Of Fuel Surcharges?

You can trace the origins of fuel surcharge back to the 1970s when there was a fuel crisis.

Then, Congress mandated the interstate commerce commission to permit carriers to bypass rate approval systems.

Such carriers would impose a fuel surcharge within a day’s notice to shippers.

One of the key functions of this commission was regulation of trucking rate to ensure there is fair pricing.

In the 1970s, the Interstate Commerce Commission formulated that allowed carriers to impose fuel surcharges.

However, the carriers also were free to develop their policies on how to apply the fuel surcharge rates.

How Does Fuel Surcharge Work?

The main intention of the fuel surcharge is to regulate the shipping process and ensure free and fair competition.

When a carrier ships goods, they have to ensure that the fuel pricing aspect is spread across the cargoes.

The calculation of this cost differs from one carrier to another.

However, there are different factors that all carriers have to consider before deciding their fuel surcharge cost.

These factors include base fuel cost, base fuel mileage and average fuel prices. A fuel surcharge cost assures the shipper of secure shipping of your goods.

How Are Fuel Surcharges Calculated?

There is no definite way of calculating the fuel surcharge for your shipment.

Different shipping companies have different ways of calculating their fuel surcharge.

However, the following are critical when calculating your fuel surcharge:

Base Fuel Rate

Base fuel rate refers to the price of fuel beyond which there is an activation of the fuel surcharge.

When the prices of fuel rise beyond the base fuel rate, you shipper has to factor the fuel surcharge on the final invoice.

Base Fuel Mileage

This refers to the amount of fuel that shipping vessels consume per mile.

Base fuel mileage gives you a factor of fuel consumption that shippers use to calculate the fuel surcharge.

Average Fuel Price

The average fuel price refers to the national average fuel.

It depends on the geographical region and government authority of a shipper.

The common formula for calculating a fuel surcharge in average fuel priceless base fuel rate.

The result you divide by the base fuel mileage.

(AFP-BFP)/BFM= Fuel surcharge.

What Is The Purpose And Advantage Of Fuel Surcharge Calculator?

A fuel surcharge calculator helps give an accurate cost that you are to pay for shipping your cargo.

This prevents the likelihood of your carrier conning you or you shortchanging your carrier.

It is advantageous since you can predict the cost you are to pay at the end of your shipping.

Is Fuel Surcharge Applicable On All Shipments?

Yes. Fuel surcharge applies to all shipments.

This is because for you to receive your cargo, you have to ship your cargo. Shipping uses fuel whose price varies during shipping.

You, therefore, should expect a fuel surcharge cost on the final invoice that you get from your carrier.

What Are The Factors On Which Fuel Surcharge Is Dependent In Shipping?

Fuel surcharge depends on the following factors during shipping:

Distance

The longer the distance is for your shipping. The higher the fuel surcharge you have to pay.

This is because fuel consumption by your carrier depends on the distance it is travelling.

You can reduce the fuel surcharge here by checking on the shortest route possible that your carrier can use.

Carrier

The different carriers available use different strategies to calculate the fuel surcharge that you are to pay.

You, therefore, have to select a carrier with favourable fuel surcharge rates for use.

You can also negotiate with such a carrier to reduce your fuel surcharge before engaging them.

Volume Of Goods

In most cases, a fuel surcharge is not a flat rate fee that you pay regardless of the shipping volume. Instead, the rate depends on the quantity of your shipment.

The higher the quantity, the higher you have to pay for your shipment. However, you can still negotiate with your shipper to reduce this cost for you.

This is by buying a large volume of cargo and enjoying the benefits of economies of scale.

Packaging

An ideal packaging is the best way of ensuring the safe shipment of your cargo.

However, packaging has an impact on the fuel surcharge that you are to pay.

You can consult with your freight forwarder on the best packaging material to use to prevent the additional fuel surcharge.

Season

The season you are shipping in determines the amount of fuel surcharge to pay.

High season shipping attracts high fuel surcharges compared to low season shipping.

This is due to the high demand for shipping space on the shipping vessels.

Therefore, the best way of reducing your fuel surcharge here is to ship during the low season.

Can I Negotiate A Fuel Surcharge?

Yes. You can negotiate a fuel surcharge depending on your carrier.

However, you need to understand that shipping is an expensive affair, especially the cost of fuel. Therefore, most carriers propose that you have a long-term contract with them, reducing the overall fuel surcharge cost.

What Is The Difference Between Fuel Surcharge And Bunker Adjustment Factor?

There is no difference between a bunker adjustment factor and a fuel surcharge in terms of their function.

However, a fuel surcharge is common in the trucking industry, while the bunker adjustment factor is common in ocean carriers.

Are Fuel Surcharges Legal?

Yes. Fuel surcharges are legal.

Legal requirements help regulate the shipping industry and ensure shippers don’t get lost during the process.

It also facilitates the faster shipment of your goods.

Is Fuel Surcharge Taxable?

Yes. A fuel surcharge is taxable.

However, the tax percentage depends on your region and that of your carrier.

You will notice this figure when you receive the final invoice from your shipper.

You can also ask your shipper for the taxation procedure for this fee.

What Does 100 Fuel Surcharge Mean?

This indicates the party which claims the fuel surcharge cost and how much they claim.

For instance, if you have 100 fuel surcharges, it means the entire amount of your fuel surcharge goes to your carrier.

However, this price does not affect the final cost you are to pay as a shipper.

Who Regulates Fuel Surcharges In The Freight Industry?

A fuel surcharge is an accepted international cost of shipping. Its regulations depend on the region and the laws governing the particular industry.

How Does A Fuel Surcharge Affect My Shipments?

A fuel surcharge is an additional cost to your shipment.

The effect of this is you have to spend more for purchasing a given amount of goods.

Fuel surcharge keeps changing depending on external factors. This has a negative impact if you are handling a small or medium business.

You have to keep adjusting the prices of your product to reflect the fuel surcharge cost.

Unfortunately, price variation means you don’t have stable clients, which can ruin the profitability of your business.

There are several ways you can control fuel surcharges from affecting the profitability and operation of your business.

For instance, you can opt to purchase your goods in bulk.

This way, you have stock to cushion you if there is a change in fuel surcharge cost.

You can also opt to ship during off-peak seasons when fuel surcharge is low.

Entering a long-term contract with your shipper can help reduce the effect of fuel surcharges.

This way, you don’t have to worry about the changes since the contract guides you.

What Are The Tips To Reduce Fuel Surcharges During International Shipping?

Reducing fuel surcharges during your international shipping is essential in reducing the overall shipping cost.

There are several ways in which you can achieve this, including:

Searching For The Best Rates

Each shipper has its fuel surcharge rates, which they offer depending on several factors.

Most shippers factor in a small percentage of profitability on their surcharges.

It is therefore critical that you check on these factors before deciding which shipper to use.

Negotiation

Once you have your shipper, you can reduce the fuel surcharge by negotiating with them.

There are several factors you can include during your negotiation, such as distance and shipping time.

The longer the distance, the higher the fuel surcharge.

Going through the various alternative routes helps in deciding which distance is shorter hence reducing the charge.

Off-peak Shipping

Peak seasons means there is a higher demand for shipping vessels hence an increase in the fuel surcharge.

In addition, most shippers are also afraid of shipping risks hence tend to increase the fuel surcharge.

You can reduce this charge by choosing off-peak shipping.

Packaging

How you package your goods determine the overall fuel surcharge that you pay.

If you want to reduce the overall fuel surcharge, you have to use the correct packaging material.

You can consult your manufacturer on which material to use for your packaging.

The right material ensures you have the right fuel surcharge while protecting your cargo.

Can I Completely Avoid The Fuel Surcharge On My Shipping Expense?

It is impossible to avoid a fuel surcharge on your shipping expense completely.

This is because for you to receive your goods, your carrier has to ship them.

Shipping results in the use of fuel from which is critical in basing the fuel surcharge.

However, it is possible to minimize this cost by considering several options.

Is Fuel Surcharge Any Different From Emergency Bunker Surcharge?

No. there is no difference between an emergency bunker surcharge and a fuel surcharge.

However, emergency bunker surcharge is common in ocean and air freight.

A fuel surcharge is a common term in truck shipping. Both terms help in minimizing the fluctuating fuel cost.

What Are Some Additional Shipping Surcharges?

There are other additional shipping surcharges that you experience aside from the fuel surcharge. They include:

Additional Handling Surcharge

This cost is for extra handling of your goods during shipment.

It ensures shipping of your goods is n the correct way, and there is no damage during handling.

It mostly covers goods that are above 48 inches.

However, the exact amount varies depending on various factors, like carrier and the handling requirements for your goods.

Packaging Surcharge

Packaging prevents any tempering of your goods during shipping.

For instance, proper packaging prevents water sipping to your goods, thereby damaging them.

Packaging surcharge is a cost that covers such an expense on your shipping.

Print Return Label Surcharge

If you use a print label for your return cargo, you have to pay a surcharge fee.

Delivery Area Surcharge

You have to pay this charge if you want your carrier to deliver your cargo to your location far from their designations.

It facilitates delivery while protecting your cargo.

The cost of surcharges differs depending on the carrier.

Therefore, you must shop around before deciding which carrier to use for your shipment.

How Can A Third-Party Logistics Company Help Me Avoid Shipping Surcharges?

There are different ways in which third-party logistics can help you avoid shipping surcharges. Some of these ways include:

Packaging Process

Packing using inappropriate packaging material can increase your fuel surcharge.

A reliable third-party logistics company can help you reduce this by offering the right packaging material for your goods.

The right packaging material reduces the overall packaging and fuel surcharge for your cargo.

Shortest Shipping Routes

Longer shipping distances increases the shipping surcharges for your cargo.

However, you can minimize these surcharges by selecting a shorter shipping route for your cargo.

A shorter shipping route reduces the fuel surcharge since the fuel consumption is low.

A third-party logistics can help you in finding a carrier with a shorter route for your cargo.

Bargaining

Bargaining is critical in lowering your shipping surcharges.

Finding reliable third party logistics can help you in the professional bargaining of your fuel surcharge.

Shipping Season

Logistic providers understand the right shipping season for your cargo.

When you engage them, they can give you advice on when it is the right time to ship your goods,

There are numerous benefits when you ship during the low season.

For instance, you get enough space for your cargo and at a cheaper rate.
This helps in reducing the overall shipping surcharge.

At Tj chinafreight, we help you reduce the shipping cost when importing from China – contact us now.

Today, I will answer all questions you have been asking about gating in.

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

What Does Gating In Mean?

Gating refers to the process in which your shipping container checks in at a container yard before delivery for loading.

This happens before the cut-off date and schedule sailing.

What Is The Container Gate In Process?

This refers to the process of allowing empty containers or full containers to unload or empty ones to load at the port’s CFS or CY.

The container gate process depends on the volume of the terminal and the traffic at the port.

Container loading at the CFS or CY helps in preparing your goods for shipping.

This is by ensuring there is proper sealing and packaging of the goods.

You are also able to get a correct freight quote which facilitates payments.

What Is Gate Out Meaning In Shipping?

Gate out refers to the process of sealing and loading your container onto a shipping vessel.

This covers the terminal exit point of the port.

Gate out freight rates consists of terminal handling rates.

What Is The Difference Between Container Yard And Container Freight Station?

A container yard refers to a place where the storage of empty containers takes place before loading on a shipping vessel.

You can also use a container yard for unloading containers from the shipping vessels when they dock at the port.

The primary use of a container yard is in total container loading (FCL).

The use of container freight stations is of use in less than container loading.

Less than container cargo owners consolidate their goods and place them in a container freight station for loading.

At the CFS, weighing and loading your goods takes place before loading them onto a shipping vessel.

You can use container yards and container freight stations interchangeably depending on the point of origin and destination.

These terms are:

CY/CY:

This refers to the process of shipping your full container cargo by your freight forwarder.

This is from a container yard at the port of origin to a container yard at the destination port.

In this case, your freight forwarder’s liability starts at the CY port of origin and terminates at the CY port of destination.

The use of this shipment means that you have a single consignee and shipper.

CFS/CFS

This refers to shipping your goods as less than a container.

You, therefore, have consolidation of your goods with others by your forwarder before shipping.

This process starts at the CFS port of origin and ends at the CFS destination port.

Finally, the deconsolidation takes place at the destination port.

CFS/CFS has multiple consignees and shippers.

CFS/CY

This type of shipment features a single consignee and multiple shippers.

For instance, a freight forwarder may consolidate goods for different shippers and ship them as their own.

Therefore, the starting point is at the CFS at the port of origin and terminates at the CY at the port of destination.

It is a common type of shipment when shipping and LCL/FCL cargo.

CY/CFS

CY/CFS features multiple consignees and a single shipper.

The process starts at CY at the port of origin before shipping to the CFS at the destination port.

Deconsolidation takes place at the port of destination.

What Is A Freight Quote?

A freight quote refers to an estimate of the total cost of your shipping, depending on the information you give.

Such information includes dimensions, weight, and the type of cargo you are importing.

Providing accurate information on your shipping gives you an accurate freight quote which facilitates easy payment.

Your freight forwarder usually lists the shipping cost on the invoice since it is unknown at the initial shipping stages.

You need to follow the following steps if you need to get your freight quote.

Select The Point Of Getting Your Freight Quote

There are different ways in which you can get your freight quote.

For instance, you can get it from a freight broker, a freight line searching for an online exchange portal.

When searching for an ideal option, you have to ensure you get the best deal and that your information is safe.

Provide All The Shipment Details

Providing accurate data concerning your shipment is critical in getting a freight quote.

Such information includes the contents of your cargo, its dimension, and weight.

Handling Process

The handling process of your cargo is critical in ensuring a smooth shipment process.

Therefore, the different ways of handling your cargo have an impact on your freight quote.

Depending on the nature of your goods, standard handling processes include refrigeration and hazardous material shipment.

Shipment Destination

The further your shipment destination, the higher your freight quotes.

You must indicate the destination port for your shipment to get the correct freight quote.

What Is Gate In/Gate Out?

Gate in/Gate is a shipping process that includes submitting an empty container either to the CY or CFS. While here, there is the consolidation aspect for LCL, loading, and sealing of your cargo ready for shipping.

The process ends when after loading the cargo onto a shipping vessel at the port of origin.

Therefore, Gate in/Gate out includes cargo shipment from your forwarder at CFS or CY at the port of origin.

Therefore, the freight rate here includes several aspects material handling and loading charges.

This term is with large multinational shipping companies that have lasting bilateral engagements with international groups.

What Is Free In And Free Out Meaning In Shipping?

The main feature of this term is it encompasses all the shipping surcharges and costs by your carrier.

In addition, your carrier rates for cargo handling both at the port of origin and at the port of destination.

What Does Gate In/Free Out Mean?

Gate In/Free Out means that the freight rate constitutes freight, accompanying surcharges, and cargo handling before departure.

However, it excludes the cargo handling rate at the destination port.

It is a common term in shipping goods from Asia and Europe.

What Does Free In/Gate Out Mean?

Free In/Gate out means the rate includes the freight cost and its accompanying surcharges.

It also consists of the cargo handling rate at the port of destination.

Do Freight Rate Quotes Expire?

Yes. Freight rate quotes expire.

Freight rate quotes have a validity period beyond which they become obsolete.

Therefore, the expiry of the freight rate quotes also means the expiry of its associated rates.

Which Factors Influence Shipping Rates?

The following factors are crucial in influencing shipping rates:

Political Stability

Shipping depends on the political stability of the port of origin, the port of destination, and the shipping route.

Therefore, when there is political instability and these parties, you will pay a higher shipping rate.

This is because a higher shipping rate covers all the risks involved in shipping to your port of destination. For instance, you have to pay a higher insurance claim for such shipment, which raises the shipping cost.

Seasonal Changes

Shipping during low seasons attracts low shipping rates.

This is because of the low demand for shipping vessels and goods.

You, therefore, get a low shipping rate for shipping a high volume of your cargo.

However, this depends on the type of freight forwarder and shipping vessel you select.

Distances

The longer the distance between the port of origin and the destination port, the higher the shipping rate.

This is due to the logistics involved in shipping to longer destinations.

Fuel Cost

Fuel cost keeps fluctuating due to the changing demand of oil prices around the world.

You, therefore, get to know the final cost when you receive the final quotation for your shipment.

High oil price demand raises the fuel price surcharge while a lower demand reduces it.

Currency Conversion

The shipping rate depends on the currency you are using for your shipment.

The use of a stable currency for both parties means you get a steady shipping rate for your cargo.

However, using an unstable currency means that you can end up paying more for your shipping cost. Therefore, most forwarders and shipping companies prefer to use the US dollar due to its stability and high recognition.

What Happens If A Booked Shipment Quote Expires?

If your booked shipment quote expires, you have to re-quote it with new and updated rates.

This facilitates the process of getting in and locking your cargo at the container yard or container freight station at the port of origin.

Should I Still Book In Advance A Quote That May Expire?

Yes. You still have to book in advance if you have a quote that may expire.

This is if you think the current rates will pass before getting in of your goods.

During the low season, you can book in advance for up to one week.

However, during the high season, you can book in advance for up to 2 weeks.

The booking process depends on the availability of the shipping vessel and the space on it.

How Are Shipments Measured During Gate In?

There are two ways of measuring your cargo at the Gate in that is by volume or by weight.

These two measurements are critical in understanding the final freight quote for your cargo.

Why Are Shipments Measured?

Measuring shipment is vital in checking out the actual volume of your cargo.

In addition, this helps in proper handling during the loading process.

Checking the volume is one of the critical factors that help get the freight quote for your shipment.

Do Shipment Measurements Change After Gating In? Why?

Yes. There can be a change in measurements on your shipment.

This is due to the tour supplier giving an estimate of your cargo’s volume and weight.

The packaging material and palletizations also increase the volume and weight of your cargo.

Will Re-Measurement Affect My Freight Quote?

This depends on the outcome of re-measurements of your cargo.

For instance, if the re-measurement increases the volume and weight of your cargo, then the final freight quote increases.

If the re-measurement process reduces your cargo’s weight and volume, you should expect a lower freight quote.

This is because pricing depends on the volume or weight basis, whichever is higher.

Is The Gating In Procedure The Same For All Shipments?

No. the Gating in the procedure is not the same for all shipments.

This is due to the different handling procedures for each type of cargo.

For instance, the handling process for LCL is different from that of an FCL.

This is because you have to consolidate LCL cargo before loading it into your container.

Specialized cargo such as refrigerated goods and dry bulk require special handling, unlike other goods.

It is therefore critical that you check on the type of goods you are shipping before Gating in.

This is because the Gating process impacts your freight quote.

What Are The Requirements For Cargo Declaration At Gate In?

There are two main requirements that you should present during cargo declaration at the Gate.

These requirements include authorizing slip number and the vehicle time slot booking.

These requirements help in facilitating the Gate in process.

What Is Marine Gate Terminal Throughput Capacity?

This refers to the availability of a Gate at a port of origin and destination.

It also includes the hours in which they are open.

It also consists of the rate of transacting process for these gates.

The number of gates available for large port terminals is proportional to the volume of goods they expect to transact.

Such terminals also can convert existing gates to either serve the inbound or outbound shipment depending on their needs.

What Are The Common Operating Hours Of Marine Gate Terminals?

The typical operating hours for marine gate terminals depend on the availability of the gates and the port’s policies.

You also have to consider the span duration of these gates.

For instance, a single shift gate operates from 7 am to 5 pm, while there a double shift gate usually works throughout.

Working hours for your marine gate usually indicate the Gate cut-cut capacity for a particular port terminal.

What Is Gate Cut-off?

This refers to closing gates to allow for working on the containers already in the CFS or CY.

Gate cut-off depends on the volume of a CY or CFS at the terminal.

For a large port, Gate cut-off rarely happens due to the availability of large capacity for the CY and the CFS.

The existence of numerous inbound and outbound gates ins also allows for flexibility when one side is overloaded.

What Is A Late Gate In?

Late Gate refers to the process in which your container arrives at the port’s terminal long after the gate cut-off process is over.

What Are The Consequences of A Late Gate In?

The significant consequence of a late in is it delays your shipment schedule.

This is because those handling your cargo have to postpone it to the next vessel due to delays in loading the empty container.’

You have to pay the penalty in some cases for late Gating in of your cargo.

For all your shipping needs from China, contact Tj chinafreight now.

Today, I will discuss everything you need to know about general order.

So, if you have any question about this freight term, you will find the answer right here.

Keep reading to learn more.

What Is General Order In International Shipping?

General order, often abbreviated as GO, is a status that the Customs and Border Protection (CBP) assigns to imported goods.

When the goods lack proper documentation or cannot be cleared by the CBP for other reasons, they are retained under general order.

If goods are not cleared within 15 days, customs hold them under GO, and they are moved to a general order warehouse.

What Are The Top Reasons Why Goods Are Placed Under General Order?

Some of the top reasons why goods are placed under general order include:

• Goods may be held under general order if the necessary fees, taxes, and duties have not been settled.
• If the importer fails to provide or fill in correctly the documents required by customs, goods are held under GO.
• If the shipment is not correctly or legitimately invoiced, they are flagged.
• Incomplete commercial invoice- for customs to consider a commercial invoice, it should include details like description of goods, details of the buyer, seller, and shipper, quantity of the goods, weight of the goods, and the goods’ value classification of the goods, among others.
• Missing or incorrectly stated country of origin- the country of origin is where the commodity is produced or manufactured. If an importer incorrectly lists the C/O, then customs may hold the goods under general order.
• Inaccurate HS Code (Harmonized Commodity Description and coding system) or ECCN numbers may result in goods being held by CBP.
  When these numbers are wrong, it makes the rest of the documentation uneven. Therefore, Customs has to hold the goods under general order until corrections are made.
• Goods may be held under general order if customs do not approve their valuation. Customs must make sure your goods are according to the customs value.
  If not, they are held as customs try and find out the shipment’s actual value. Custom value assists in determining the total amount of import duty and other taxes that require payment.
• The consignee of the goods denies being registered as the importer. This can come about if the consignee does not understand the import process or doesn’t want to be involved. If this happens, customs hold the goods under general order.
• If the goods lack the HTS classification- customs require that the HTS classification is listed on every item on the commercial invoice following the Codes of Federation Regulation. Failure to which customs may hold your goods under general order.
• A participating government agency may request the CBP hold goods for them as they inspect and examine them. Sometimes PGAs randomly select goods for these routine checks.
• Goods can be put in general order as they await a contraband enforcement team (CET) test. This is common for goods with particular regulations and restrictions.

How Do I Know If There Is A General Order On My Shipment?

Usually, customs will alert the importer or their customs broker electronically.

The CBP might move on with examining the shipment or ask for the importer to provide more or accurate information.

Customs will then release your goods if you provide what they require. If they are not content, they continue holding the cargo under general order until everything is set for clearance.

What Customs Clearance Documents Do I Need For International Shipments?

Import documents that you may need include the following:

Bill Of Entry

This is a document that a customs clearance agent or an importer files before the goods arrive at the destination port.

Packing List

A packing list contains detailed information about the goods in the shipment.

This information includes; packing details, the quantity of goods in the consignment, dimensions, weight, handling instructions, etc.

Bill Of Lading (BOL)

A BOL is a document that a carrier issues to a shipper. Its purpose is to highlight the journey of shipment from the country of origin to the destination.

Commercial Invoice

This is one of the primary documents that you require for international shipments. It is a legal document that binds the supplier of the goods and the customer.

It provides a clear description of the goods and states how much the customer owes.

Customs use a commercial invoice to decide on the customs duties and other taxes.

Pro Forma Invoice

This document provides the commitment of a seller to supply the said goods on the date and time set down.

Country Of Origin Certificate

A certificate of origin provides information on where the goods were produced, manufactured, or grown.

Insurance Certificate

Importers provide this legal document as proof that the shipment has been insured against damages throughout transit.

Customs use the information in this document for shipment valuation and determine the duties payable.

Import License

The government issues this license to grant permission for the importation of goods into the country.

Health Certificate

A health certificate only applies to food-related shipments. It certifies that the product is safe for human consumption and it meets the necessary set standards.

A consignment is issued with a health certificate having gone through the required inspections and exams.

How Long Does It Take To Clear Cargo Through Customs?

Time taken to clear cargo through customs differs for sea freight and air freight. Ocean shipments may take between 5 days to clear before landing and cargo recovery from the port.

For air shipment, customs will clear goods between the time the plane takes off and the time of cargo recovery at the airport.

It is typical for goods arriving by plane to be cleared even before touch down.

What Is A General Order Warehouse?

If customs do not clear goods within 15 days, they are moved to a general order warehouse. This is a bonded facility that holds goods classified as general order.

General order warehouses can store goods for up to 6 months. At this time, the consignee may file a warehouse entry with the relevant customs and pay all the outstanding duties.

Failure to do this, customs repossess the goods and might auction them or even destroy them.

Is General Order Warehouse Any Different From Container Freight Station (CFS)?

There are distinct differences between a general order warehouse and a container freight station.

A GO warehouse is used to store and hold goods that have exceeded the fifteen days’ time limit for clearance.

On the other hand, a CFS is a temporary storage facility where shipments are stored before export/import.

A GO warehouse can hold goods for up to six months, while a container freight station stores cargo for way shorter periods.

As said, the latter is just a temporary storage space/facility.

How Long Will Customs Hold My Cargo In General Order?

Customs will hold goods under general order for not more than six months.

During that period, you are still in a position to clear your cargo. You can hire a professional to help you with the customs clearance process.

However, there may be consequences if the six months go by and your cargo is still in the general order warehouses. In this case, the government will seize it or auction it to offset the accumulated expenses and liens.

What Is A General Order (GO) Date In Shipping?

The GO date is the date that customs give the consignee before putting their shipment under General Order. A GO date acts as a deadline for the goods to be cleared, failure to which they are declared as general order.

What Are The Different Types Of Customs Hold In US Import Procedures?

The different types of customs hold include the following:

• Manifest hold– get ready for a manifest hold if the information or the data you provide is inaccurate. Also, if you do not forward your Import Security Filing (ISF), you are likely to encounter this type of hold.
• Commercial enforcement hold– the CBP puts this type of hold on goods for any issues that are likely to arise. During this hold, the hired agency reviews the paperwork and inspects the goods.
• Statistical validation hold– customs hold selected shipments for verification of declared versus actual statistical data. The CBP must ensure that they validate the statistical data of a shipment before allowing its clearance.
• CET Exam hold– customs may hold goods as a Contraband Enforcement Team (CET) exam. CET is also known as A-TCET (Anti-Terrorism Contraband Enforcement Team)
• PGA Hold– one of the participating government agencies (PGA) can request CBP to hold goods for them as they review and examine them.

What Is The Meaning Of 1S In Relation To Customs Holds?

1S is a disposition code in the Customs and Border Protection’s Automated Manifest Interface titled, ‘Ordered to General Order.’

It specifies the time of lay order, according to which the status of the goods is decided, is over with the goods still uncleared.

When customs generate a 1S code, the goods in question will be declared general order and moved to a GO warehouse.

After transferring the goods successfully to the bonded warehouse, their disposition code will change from 1S to 1U.

What Are The Lien Charges In A General Order Situation?

We can define lien charges generally as claims or funds for settlement of a debt or payment for services provided.

Some of the lien charges in a general order situation are as follows:

• Arrival warehouse charges- you will have to clear all the fees incurred at the arrival warehouse to allow goods transfer to the general order warehouse
• Freight charges
• GO warehouse charges; this includes administrative charges, storage, and handling of the cargo.
• Moving charges by the GO trucking company. (for moving the cargo from the arrival warehouse to the general order warehouse.)
• Work done on behalf of the cargo by the customs broker or freight forwarder.

Do I Need To Pay Storage Fees For Cargo In General Order Warehouse?

General Order warehouses charge by the month. For instance, even when your cargo stays there for five days, you will still pay the monthly charge.

The longer goods stay in a general order warehouse, the more you will pay.

On top of the storage fees, you will need to pay for services like maintaining and cleaning the cargo. You will also need to pay for any other expenses incurred for the period goods are in the GO warehouse.

Who Pays For General Order Cargo Transportation?

As the cargo owner, you are responsible for paying the transportation costs of the goods to and from the GO warehouse.

What Happens To Unclaimed GO Cargo

Depending on several factors, customs can decide to take the following actions on unclaimed GO cargo:

Auctioning

If the cargo is still unclaimed after six months, it is taken to an auction location by customs. They follow through with the standard auction procedure, where the highest bidder gets the commodities.

When one buys goods from the auction, they are responsible for clearing the goods through customs at their own cost.

This includes payment of any pending taxes, fees, or customs duties.

Customs use the proceeds of the sale to settle the pending expenses and liens.

Destruction

Customs destroy unclaimed goods that are perishable or HAZMATs. Perishable goods, for instance, fresh flowers, fresh farm produce animal products like meat and dairy.

Examples of HAZMAT goods are explosives, radioactive items, flammable goods like perfumes, alcohol, etc.

Customs also destroy goods of low value instead of taking them to the general order warehouse.

Donated To Charity

Though it is pretty uncommon, unclaimed cargo is sometimes given out for free to charitable courses.

Seizure

In some cases, the government confiscates the abandoned cargo and repossesses it.

When this happens, the goods become government property and can be used as the government wishes.

How Do I Clear General Order Cargo Entry?

Clearing your general order cargo entry will need you to follow the following simple steps:

• First, you will need to file the General Order entry. After which, a general order warehouse operative or a CBP officer will provide you with a general order number.
• You will have to enter the general order number in both the manifest and general order tabs. Ensure that you check out the NON-AMS file, as your bill shall not be presented electronically.
• Take away the AMS bill and put the general order number as the master bill of lading number.
• Finally, forward the entry via ABI.

What Are Some Tips To Avoid Cargo From Entering The General Order Status?

Some of the tips to avoid cargo from entering the general order status include:

• Make sure your customs broker is aware of the incoming shipment and what it contains. Custom brokers do not always know everything about shipping.
  Therefore, you should alert them before having enough time to find out details about each item being imported.
  They need to find out the duty rates; HS tariff classification, restrictions/ special regulations, etc.
• See to it that your customs broker has all the essential documents and data needed for declaration.
  Customs cannot clear your shipment if the customs broker does not have the necessary documents and the data in them is inaccurate. To avoid this, it is better to make sure that your customs broker has everything beforehand.
• Ensure that you are aware of all your incoming shipments. Better yet, ensure that our suppliers/vendors notify you of any incoming shipments. If you get an unexpected shipment, it is almost impossible to get customs to clear them in good time.
• Make sure that you value your shipment correctly. Customs have to cross-check that the contents of your shipment are accurate of the value that you have stated.
• Ensure that your cargo’s invoice is legal and all the information provided is accurate.
• Confirm that the consignee is well conversant with their roles and duties. And that they are willing to be listed as the importer.

What Should I Do Is My Goods Are Held In Customs?

It would help if you tried to resolve the situation by first finding out why your goods are being held.

Then, contact your customers to alert them of possible delays. This helps maintain your good reputation and minimizes assumptions and disappointments.

Also, you can try to contact the carrier as most of them have connections that might help hasten the release of the goods. Make sure you verify the status of the shipment before you take any further action.

As you all this, be prepared to provide all the documents and information that CBP may need to verify your shipment. Make sure all the shipment information and documentation are correct and up to date.

Ensure that you clear all the pending payments, taxes, and liens.

If you cannot settle the issue by yourself, then it is time to hire professional assistance. There are many companies or individuals experienced and specialize in these kinds of customs clearance issues.

Select your most preferred company or agent and start the customs clearance process.

In other cases, especially in consolidated shipments, you will have to wait.

Consolidated shipping involves combining many shippers’ goods into one shipment. So your goods may be held due to a fault in another shipper’s goods.

Unfortunately, you can’t clear only your goods. Clearance has to be done for the whole shipment. Meaning, you have to wait until the responsible shipper sorts out their issues with customs.

Can A Customs Broker Help Sort General Order Issues?

A customs broker is a third party that offers professional services to help clear goods faster and more efficiently.

So yes, you can hire a capable customs broker to sort out goods held under general order. The broker can liaise with the players involved in ensuring all documentation is available and correct. They will also see to it that all taxes, duties, and fines are paid.

For any question or inquiry about any freight term, TJ China Freight is here to help.

Contact us now for all your freight forwarding needs from China.

Let’s look at another important term in freight industry – general rate increase.

So this guide will answer all questions you have been asking about general rate increase.

Let’s get started.

What Is A General Rate Increase?

General Rate Increase is an additional charge of the actual rates of the freights while shipping through certain trade routes.

The carriers in different companies establish this general rate increase to maintain a steady competition from rival freights.

General rate increase normally occurs during the peak season when carriers are shipping large freights, thus charging high costs.

Constant upgrading and maintenance are of great importance. This helps in keeping the business viable for competition and providing quality services during shipping.

Why Is GRI Applied?

The main concept while applying for a general rate increase is to determine the following;

• Supply and demand curve
• How viable the market is at that specific moment

With these factors, carriers can determine when to apply GRI and when not. In most cases, an increase in demand will always bring a peak season for carriers to increase the costs.

Due to the unsustainability of the GRI, when peak seasons occur, carriers should get the best out of them.

For this case, reporting 30 days before the relevant authorities recommend the application.

Maintainance, insurance, and compliance expenditures will also lead to carriers advocating for a general rate increase.

Inadequacy of nationwide drivers results in high costs for the few available drivers. This, as a result, leads to carriers applying for a general rate increase.

The constant fluctuation of fuel costs does not guarantee a decrease in GRI, but rather, these costs only affect the fuel surcharge. Therefore, the carrier will still apply the general rate increase.

When Does A GRI Apply?

We attribute GRI using the supply and demand drivers of the market at a specific time. This supply and demand will allow us to determine when to apply GRI by;

• Evaluating available building blocks of the market
• Global trade
• Market stability and the available trends

Over-supply of goods in an environment with low demand will always lead to slow movements of goods. Thus, carriers introduce the GRI to incur this cost of unmoving goods.

Peak seasons occur annually or semi-annually and sometimes do not occur at all. Therefore the carrier will choose when to apply the GRI depending on the demand.

Who Announces GRI, And When Do They Announce It?

Normally, the shipping line is responsible for making the GRI announcement. There has to be a submission request to the Federal Maritime Commission 30 days before making the announcement.

Depending on the market condition, carriers will decide whether to take the full increase cost set during the announcement. It means carriers can low the cost if the demand is low.

For instance,  increase up to $600 for a 20-feet shipping container with an effective date of 1 st December as per Maersk company.

Evaluation of the market condition will decrease this cost to $300.It prevents stalling of goods in the market due to low demand.

How Is The General Rate Increase Calculated?

General rate increase majorly involves analysis to allow you to determine when to impose these additional charges and when not to.

Calculating GRI involves:

An analysis of all changes in costs during the previous years.

The steamship line is aware of all the costs each tradeline is making, which are a determinate of GRI rates.

Evaluate carrier’s cost struct to review capital and expense projections to determine the current year or upcoming year. This calculation is a comparison of the GRI history with current or future history.

This prediction determine the number of unfolding activities such as;

• Future of labor
• Consumer behavior
• Government fees

What Items Are Not Included In The GRI?

In most cases, not all items are subject to a general rate increase. These items either cannot or are not included completely in the general rate increase. Some of the items include

Fuel costs: we associate fuel costs with ongoing surcharge/fluctuating costs where carriers can negotiate and find a possible solution.

Companies with large carriers /demand always set the price rate before other companies can do it. This aspect increases price competitiveness.

Small companies are not left out in this as they have similar set rates as large companies.But for this case, they will either experience high or costs GRI great affect these small companies.

To cab this impact GRI to small companies, they opt to work with third-party logistics to increase the chances with carriers.

What Is The Difference Between GRI(General Rate Increase) And PSS(Peak Season Surcharge)

The following are some of the major differences between the general rate increase and peak season surcharge. They include:

The general rate increase is an additional charge of the original base rates of freights been shipped through different trade lanes.

With a general rate increase, the charges tend to vary with months and also the carriers of the freights.

General rate increase can occur at any time of the year as long as a notification is made 30days prior.

On the other hand, Peak season applies when the demand for products is high hence the term peak season.

Market shifts affect the demand for goods, and therefore, the carrier can decide when to lower and when not to.

Charges on peak season surcharges are always above the base rate of the freight.

Peak season surcharge gives notification 30 days prior, but the best season is during fall/winter holidays and the Chinese new year.

Peak season surcharge can be sometimes chaotic. This results in goods lagging since you cannot move them throughout the year.

Below are some tips to cab the peak season surcharges

• Booking for the shipment before ar after a peak season
• You should consider carriers with lower PSS adjustments
• You should seek for leveraging relationships with carriers, freight forwarders, and NVOCCs
• Consider booking on slower routes to reduce the costs you will incur while the goods are still.
• You should negotiate for a fewer Peak season surcharge in your contract.

How Do GRI And PSS Factor Into My Freight Quote?

Generally, carriers can cancel, postpone, or implement PSS and  GRI at a lower cost than the announced one.

In some cases, the freight forwarder will charge you the total amount as per the original announcement and after implementing low rates.

We recommend all our freight forwarders give the actual surcharges of goods under or over quoted.

What Factors Contribute To The General Rate Increase In Shipping?

Companies should have rates limits that are generating high profits to the company.

Hence the need for generating rate increase that allows for adjustments according to trending marketing conditions.

Large companies have minimal impacts from the GRI compared to the small companies where the GRI impact is so high.

Below are some factors that contribute to the general rate increase in shipping:

Equipment Cost

There is a drastic increase in equipment cost due to the increase in the need of companies to acquire more advanced equipment. Examples of these technologies that have made the drastic increase are

• Tracking mechanism to satisfy consumer needs
• Measuring and weighing of fright techniques

Electronic logging devices that enable tracking how many hours a driver is working or resting

will help measure and weigh.

We are certain that these kinds of investment costs will reduce, with the carrier’s upfront investments greatly affecting GRI.

The Rise Of E-commerce

The increase in demand for consumers to buy goods online is evident in every nation. It, as a result, has led to an increase in demand for less than truckload.

For instance, a company like Amazon offers free delivery for goods worth$49. With this offer, there is an increase in the number of goods to be shipped using TLT.

With these increases in rates, companies will be able to meet the yearly contribution to the GRI.

For a single delivery using the TLT will be difficult because the cost you incur will be greater than the demand of that single commodity.

Driver Shortage

In our world today, almost every job is autonomous. It means machines can also perform this job.

This technology is constantly affecting the number of drivers. This results in drivers seeking other forms of employment, thus decrease in services they render.

Enhancement of safety regulations by relevant authorities decreases the number of hours a driver can work in a day. With these factors in place, we find it hard to delegate duties to drivers.

Inadequate parking space significantly contributes to a shortage of drivers. Lack of ample parking prevents drivers from making more runs since they park very far away.

Manufacturing Industry Growth

The modern world is significantly rising to greater heights when it comes to the manufacturing of goods. This growth enhances the increased supply of materials to manufacturers, processing and delivering goods to an appropriate location.

Demand for TLT to deliver goods is increasing hence an increase in demand for tracking service mechanisms. This method boosts the rates of the company.

Getting goods into the market is every manufacturers or supply desire, and therefore they will opt to pay expensively for these services.

Fuel Prices

A constant rise in fuel prices is posing a danger for shipping carriers and trucking companies. This does not cause an alarm to use GRI, but still, it shouldn’t be ignored.

Below are some reasons for an increase in fuel cost:

An increase in demand in the market segments will lead to an increase in cost, leaving the suppliers with no option but to conform to these rates to deliver goods to consumers.

How Long Does A General Rate Increase Last?

Despite the set period of announcing GRI 30 days prior, the carriers can make changes. Carriers

should lower these charges anytime they want. It results in a decrease of the freight charges weeks by weeks until the set month elapses.

During the beginning of a new month, the DRI charges shoot up again. This is normally a cycle of lows and highs of the GRI.

What Is The General Rate Increase 2021?

Most countries in the world are experiencing this general rate increase since its implementation in 2021. During this stage, we will focus on implementing the general rate increase on less-than-container -load.

Available tariffs and NRA rates will also be applicable.

These rates are ;

• Per square cubic foot, the charges are $0.05
• For every 100 cubic feet, the charges are $0.15

An increase in general rate increase will always apply even with the existence of current market rates.

Under special cases where predicting the future of the market trends is difficult, constant assessment of the market is recommendable.

What Are The Effects Of GRI On International Trade?

The following are some effects of a general rate increase on international trade:

An increase in demand for imported goods results in an increase in GRI by the carriers. This factor will greatly affect the small-scale business as they try to penetrate the market.

Importers will approach third parties who are all aware of all protocols to follow and what period to follow. It, as a result, reduces the costs the importer incurs while shipping.

Importers will find it hard to import a large number of goods. It is because the carriers will impose high GRI charges on a large number of goods.

Increase in a shift of demand in different trade lanes.

There is a possibility of delayed sales of goods, especially if the importer brings goods on normal days rather than peak seasons. It is mostly applicable in countries that are experiencing winter seasons.

Does The GRI Affect All Countries?

General rate increase almost affects all countries across the globe. This impact is both felt on import and export of goods by the carriers.

But due to the trending factors such as advances in technology, which results in high demand, thus increasing the rates.

It has lead to the implementation of GRI rates on cargo coming from fr east. It means the manufacturer produces quality goods, thus increasing demands, which implies more rates to settle the GRI.

Who Does GRI Affect Most?

General rate increase affects all customers from the exporter, importers, and freight forwarders. Normally, There Are Different Contracts Signed Between The Carriers And Different Parties.

For instance, whether a carrier is NVOCC, the shipper will sign a freight contract to speed up the process.

This increase in GRI affects everyone, whether you are an importer or exporter, due to the increased rates along the shipping line.

Everyone is responsible for payments along the shipping line.

Additionally, GRI greatly affects small companies that are penetrating the market. It is a result of competition from large companies that have enough resources to penetrate the market.

The competitive nature of the market condition will push the small companies to set achievable rates regardless of GRI.

How Do I Prepare For The Shipping GRI?

Shippers ought to have important information entailing service type, weight and dimensions, pick-up and delivery locations, and surcharges.

This information allows the carriers to set regulations in the contract.

You should also be able to understand what are your shipping information is telling you. Its entails;

• Get to know your common types of service.
• Which are some of the surcharges that are making you incur more cost
• Is your distribution network set up well
• Is DIM weight a continual issue

A better understanding of the shipping profile allows you to understand the rate, discounts, and minimum charges clearly.

Are All Shipments Subject To GRI?

All shipments are subject to GRI. It applies to both full container load and less container load. The main impact of GRI to the buyer or the seller is that they have to adjust accordingly to increase in costs of products. This adjustment accommodates the freight charges.

A distinct feature from LCL and FCL is that for FCL, its effect is felt by one buyer and one seller. In the case of LCL, the impact is felt by two or more buyers and sellers.

Does General Rate Increase Impact All Customers?

No. General rate increase does not impact all customers.

Mostly, only a few customers who experience these impact especially those with small companies.

This is because they have to strive and keep up with the market competition.

For large companies who move a large number of goods and have market experience, the GRI will not impact them.

It is because they can easily penetrate through the market and raise the rates to pay for GRI.

How Can I Manage The Impact Of GRI On My Business?

GRI impact is felt by an importer, exporters, freight forwarder, and the carriers collectively or individually.

The only way left at the moment is for you to try and manage these impacts on your business. You can achieve this by;

Shipping before or after the shipping period, especially on trade routes where this charge is applicable

If you are shipping for a large number of goods, negotiate with the carrier to reduce additional charges of the shipment.

You can also approach freight forwarders who are best aware of freight periods. It helps you reduce the impact of GRI on the business.

What Is GRR(General Rate Restoration), And How Is It Different From GRI?

General rate restoration allows you to negotiate for more applicable special rates while shipping through a certain shipping line. This event occurs and is kept within the shipping line.

If you have any questions about general rate increase or any other freight term, Tj chinafreight team is here to help – contact us now.

If you’re looking for any information about general average, you will find it right here.

So, keep reading to learn more.

What Is General Average?

General average is a policy that takes the form of an agreement between the shipowner and cargo owner in shipping.

It is based on the principle that the shipowner is only shipping because of the availability of the owner’s cargo.

The principle further states that an intentional sacrifice or expenditure is subject to contribution by all parties in the voyage.

The sacrifice and expenditure in use aim at providing safety for both individuals on the ship and the cargo against unforeseen contingencies.

As a result, the general average attracts various regulations and demands.

For instance, in case of an accident or a loss, the agreement stipulates that each party contributes to the costs associated with the accident.

What Is The History Of General Average?

The General average principle dates back to 1890 after an official recognition and integration into the York-Antwerp rules.

It was to facilitate international uniformity when it comes to shipping activities.

General average addresses constraints that shippers encounter when shipping internationally. These constraints are a result of the laws imposed on different countries concerning shipping requirements.

However, with a general average, these constraints are averted.

Moreover, rules that govern the general average are subject to revisions. The most recent revisions being those of 2004.

The rules state that the general average act enacts when there is an extraordinary sacrifice or expenditure.

Which helps enhance the safety of the cargo and individuals.

These sacrifices must also be intentional and reveal plausible reasons as to why to enact upon them.

Additionally, the general average was initially part of the maritime law. Today, it is categorized alongside the Admiralty law.

What Is The Role Of General Average In Shipping?

General average displays the following roles upon enactment;

• It ensures the individuals in the shipping vessel are safe, and in case of an accident, they are well compensated.
• General average further ensures your cargo is safe from damage and loss.

In case of damage and loss of cargo during shipping, the cargo owner is also compensated.

Additionally, damages and losses experienced by both the ship and cargo are divided among the participating parties.

Thus, the costs incurred are divided amongst the ship owners and cargo owners.

Therefore, the general average in shipping mainly facilitates shipping for cargo and ensures safety for the cargo, crew members, and the shipping vessel.

What Are The Principles Of General Average?

General average bares the following principles:

Principle Of General Average.

This principle postulates a sacrifice put forth to ensure the safety and benefit for all in the ship. However, the contribution to this sacrifice comes from all parties involved during shipping.

The Sacrifice And Expenditures Involved In Shipping Must Be Extraordinary.

There must be concrete actions that jeopardize the safety of the vessel and its components.

These actions satisfy the criterion for extraordinary.

Example, when a ship experiences mechanical damage while on the voyage, it is subjected to peril; as a result, general damage applies.

However, actions that are enacted to bring the vessel to safety are not termed as extraordinary.  As a party in general average, you need to understand that general average applies to only extraordinary situations.

It includes machinery breakdown, heavy weather, collision, and any other situation that results in the detention of a ship at the port.

• General average mandates that the amount of expenditure in general average should be equal to the expenses incurred.

Due to following damage or accident of ship or cargo.

• All rights governing the general average must be fully adhered to. It includes the rights of the shipowner and protection rights under the contract of carriage.

When Is A General Average Declared?

General average is declared when sacrifices and expenditures help avert impending danger to the ship or cargo.

These sacrifices are enacted upon in the event there are dangers such as storms, fires, mechanical breakdown, or any other scenario that calls for sacrifices.

Generally, four conditions satisfy the use of the general average. These are;

Sacrifice

It involves actions such as offloading a ship to reduce its weight and facilitate floating.  Thus, cargo may be lost into the sea to salvage the ship and part of the cargo.

Peril

General average applies to a ship exposed to danger, such as sinking into the sea. Thus, both cargo and the ship are subject to getting lost in the sea.

Expenditure

It involves incurring expenses to obtain machinery or materials used to facilitate the ship’s safety. Such includes purchasing tags to help refloat a sinking ship, storage costs at nearby ports of refuge, and even transport costs to the ports of refuge.

Actions That Facilitate Safety For All In The Ship

It is also known as common safety. Thus, any actions implemented to protect all parties in a ship and facilitate their safety call for a general average.

Thus, the actions serve the interests of the ship, cargo, and crew members.

Who Declares General Average?

The general average adjuster declares general average. The adjuster assesses loss and damage and approves an  general average contribution.

Why Declare General Average?

General average is beneficial to parties involved in shipping, thus the shipowner and cargo owner.

The general average allows the shipowner to enact necessary measures to salvage the ship and cargo.

It might demand the shipowner to reduce the cargo by jettisoning some cargo into the sea. However, with an average general agreement in place, any expenses or sacrifices are due to compensation.

A calculation is done to determine the expenses used during the time of peril to salvage the ship. Its contents include the crew members.

The shipowner and the cargo owner contribute to settling the expenses and losses incurred during the incident.

Therefore, a general average is crucial in helping settle the losses and costs accrued following an unavoidable circumstance that poses a danger to the ship.

Generally, the general average helps ship owners and cargo owners cater to reparations from shipping accidents.

What Is The General Average Process?

The general average process commences upon a declaration of general average on a shipping vessel following an incident leading to peril.

After that, two documents must be signed by the cargo owners and the cargo insurers. These are the average bond and the average guarantee documents.

Cargo owners sign the average bond documents, and the cargo insurers sign the average guarantee documents.

These documents assurance that the involved party is mandated to pay the contribution assessed by adjusters for the general average.

On the other hand, ship owners are backed up with a possessory lien on cargo. It acts as a general average security for all parties on the adventure.

The ship owners are thus mandated to collect the possessory lien for all parties.

It includes cargo interests for the cargo in sacrifice under the general average act.

The adjuster then collects and works on processing the securities presented as soon as possible.

It is until these securities are finally processed that they will realize the cargo to their final destination.

Delays usually occur when the securities take time to be presented to the adjusters. Therefore, to evade such delays, proper communications and updates to adjusters are crucial.

For insured cargo, the process is swift.

The insurers are aware of the requirements and readily avail the security documents for processing to commence.

After that, insurers make necessary payments to the general average.

For uninsured cargo, the process is a little complicated.

Cargo interests are calculated, and the adjuster further subjugates cargo owners to a certain amount as a deposit for the general average.

This amount is usually a percentage of the cargo value. The general average adjuster then makes final calculations on the exact amount of contribution for the general average.

The general average adjuster then calculates the general average expenditure for the cargo.

It is the cost incurred during the adventure by involved parties. After that, the general adjuster makes payment of allowances concerning the York Antwerp Rules.

The amount for contribution is then calculated concerning all the property involved—credit for all expenses accrued in general average, including losses.

Finally, the involved parties pay or receive the stipulated amount in general average following the final general average adjustment.

Is The General Average Process The Same When Cargo Is Booked Via A Freight Forwarder?

Yes, the process of general average follows the same procedure.

However, the adjuster works hand in hand with the freight forwarder to ascertain the real owner of the cargo.

After that, the process continues. The only disadvantage is that it is time-consuming and might result in delays since the freight forwarder has to seek the cargo owner.

Only then will the adjuster present the final general average to the parties involved to release the cargo to the destination.

First and foremost, the general average adjuster affirms whether a cargo is cleared for general average.

Afterward, the adjuster collects the necessary documents as outlined in the process above.

He then uses the available information to calculate the expenses and losses incurred regarding the general average.

The amount that each party is further determined and made available to the stakeholder parties.

What Events And Expenditures Are Likely To Be Involved In A General Average Loss?

The following events are the main causes for losses and result in expenditures contributing to the general average loss.

They include;

• Jettison (This involves throwing off some cargo into the sea or ocean to make the ship light).
• There is also discharge and re-loading cargo.
• Loss and damage associated with the use of fire extinguisher
• Towing services. It applies to ships exposed to mechanical breakdown.
• Salvage services. It includes help from other vessels or property.

These events and expenditures are mostly experienced in a general average loss.

What Is General Average Security And Why Is It Needed?

The value of goods the shipowner withholds while the cargo is undergoing adjustment for the general average to determine its contribution.

It is addressed as a lien for the cargo.  It acts as a payment to the shipowner as the cargo is under process for general average.

Requirements for general average security consist of a list of documents and cash deposits for cargo owners with no insurance policies.

For cargo owners with insurance policies, they produce an insurance guarantee document that serves as security.

It can also be in the form of an average bond document signed by involved parties.

General average security ascertains that the general average payments for losses and expenditures are paid to the shipowner.

It also gives the general average adjuster room accurate calculations to give correct figures for the general average contribution.

What Do The Instructions To Collect General Average Security Include?

If owners require adjusters to collect securities from them, then they should follow the instructions below:

• They should send a draft message to consignees with a brief of the casualty and security requirements.
• Owners should define the forms to be in use and give details or security in need.
• The reporting procedures should also be well elucidated
• Lastly, the agents confirm to the owners that they have received the needed documents for collecting security.

For the documents mentioned above, they should adhere to the following instructions:

The Average Guarantee Document

The form should conform to the required structure by the general average adjuster and should not in any way be altered.

If an insurer wants to use their desired document, consultations with an adjuster should first be made.

Full details concerning the description and identity of the cargo, including container numbers, should also be made available.

Ports of loading and discharge need also be indicated.

Full details of the insurance company should be availed. This makes it easier for the adjuster to follow up with the insurance to settle the general average.

Ensure that the insurance company makes the signature to this document. The broker or consignee’s signature is not applicable in this case.

The Average Bond

The receiver should sign it.

The agent should affirm the full details of the cargo, and consignees are provided.

Additionally, the agent ensures that commercial invoice is readily available in case it is required.

Deposit Receipts

These majorly apply to the uninsured cargo. The adjuster, therefore, requires a deposit amount that is usually a percentage of the value of the cargo.

The adjuster, therefore, ensures to produce an open invoice to the cargo owner.

Deposit receipt should be completed carefully.

A photocopy of the deposit receipt is detained for filing.

For the depositor to get a refund and collect his cargo, he must produce the original deposit receipt. It happens after he has made the required general average contribution.

Lastly, any additional requirements and instructions to the depositor are conveyed to the owner.

Who Is An Average Adjuster And What Is Their Role In General Average?

An average adjuster is someone who specializes in conducting general average assessments and calculations.

He prepares the claims and determines each party’s contributions to help settle losses and damages to cargo and ship.

Therefore, it is best to sort help from an average adjuster in the event of a general average claim.

What Is The Typical Bill Of Lading Terms On General Average?

The bill of lading terms for the general average are as follows;

General average adjustment should follow the York Antwerp rules as revised despite the choice of port.

The adjustment applies for all types of goods, whether or not on deck, and this extends to animals.

General average also accounts for all goods, including those in italics that the carrier takes no responsibility for.

The cargo owner should present a cash deposit or other security requirements to the adjuster before making the delivery of the cargo.

If the shipowner delivers the good without claiming for the average bond and other security, he caters for the general average contribution.

The general average contribution is payable according to the York Antwerp regulations unless otherwise stated.

How Does General Average Impact Importers And Exporters?

General average affects importers and exporters in the following ways:

They suffer delays associated with the process of general average.

They may end up losing part or all of their cargo. The contributions for the general average sometimes might be extreme.

They experience extra costs associated with import and export excises.

These include fines, penalties, or reverse charges from clients in need of the supplies from the cargo.

The effects are grievous in an LCL shipment.

If one of the cargo owners fails to adhere to the general average requirements, the whole shipment is detained.

These further result in inconveniences caused by delays.

Cargo owners suffer from expenses, especially when the calculated general contribution exceeds the value for their cargo.

They end paying a higher value than the value of their cargo, resulting in a loss.

Additionally, for a large cargo, the owner is bound to suffer more loss. An average bond is required before the release of the cargo.

Average bond mandates that security is calculated as a percentage of the value of goods available.

As a result, a cargo owner with a large shipment bears a significant value that exudes loss on his end.

Is There A Time When General Average Is Not Used?

No, there are some situations and cases that do not justify applying the average general principle.

These situations include:

Suppose damage or loss of cargo is caused by an individual directly. In this case, the individual is held accountable for the loss.

If the ship is involved in an accident that leads to loss and damage of cargo, then the general average does not apply.

Lastly, you cannot use a general average if the ship and cargo are not directly exposed to danger that leads to peril.

The loss and expenses experienced should portray an act of saving the ship and cargo.

If this is not the case, the general average does not apply.

What Is The Difference Between General Average And Particular Average Loss?

General average and particular average loss might qualify as marine insurance plans for partial losses. But they have aspects that differentiate them from each other.

General average is a loss that results from a general average act.

While particular average losses are unforeseen losses that result from accidents that lead to peril.

General average loss and particular average loss differ in the following ways;

The general average loss is beneficial to all interests.

While the respective average is for any of the interests in connection with the loss.

The general average loss is voluntary, while the particular average loss is majorly accidental.

The general average loss is shared by all those who are partakers in the general average act. While an insurer pays a particular average loss.

General average loss includes sacrifice and expenditure, which contribute to the loss, while particular average loss is caused by damage or loss.

The cause of general average loss does not qualify for insurance, while the cause for particular average loss can be insured.

Is General Average Independent Of Insurance?

No, the general average exists as a separate entity from marine insurance. The general average act protects the cargo, ship, and crew members from the loss of a voyage.

It is upon the owner to take an insurance plan that will enable him to pay the calculated general average contribution calculated by the adjuster.

Why Is Marine Cargo Insurance Important During Ocean Shipping?

Shipping is exposed to many dangers that can cause damage or loss of cargo during the journey. Insurance policies help the owners of cargo recover or rather get compensation due to these losses or damages.

How Much Does Cargo Insurance Cost?

Cargo insurance is based on a percentage of the value of cargo that is under insurance.

What Are Some Examples Of General Average Events?

• Acts of God or unavoidable circumstances such as storms
• Latent defects in the ship’s hull or machinery or machinery breakdown on the ship
• Un-seaworthiness of the vessel. Sometimes the ship is not able to withstand the sea.
• In case of criminal acts or negligence by captain or crew
• Perils, danger, and accidents at sea
• Fire
• Theft

Is General Average Applicable To Airfreight?

General average is not yet incorporated for airfreight. Nonetheless, some events and circumstances qualify for a general average policy.

It includes scenarios that prompt an aircraft to jettisons to keep it flying up the sky.

Other events that call for the application of general average in airfreight include;

• When a plan engages voluntary belly landing for safety
• When a plane calls for help in the event, it crashes in the sea
• Airplane making an emergency landing at a nearby port for repairs.

At Tj chinafreight, we offer complete freight forwarding solution when importing from China.

Contact us now for all your shipping needs from China.

If you’re importing from China, you have probably heard a holiday called the Golden Week.

Just like Chinese New Year, there are a number of factors you need to about Golden Week.

Let’s dive right in.

What Is Golden Week

It is a week that celebrates China’s national day.  The Golden week allows the Chinese people to travel across the world as they enjoy this day.

It is given the name Golden week following the growth of tourism in China during this time, contributing to China’s economic growth.

How Long Do Chinese Golden Week Celebrations Last?

The Chinese Golden Week lasts for seven days. It is from the 1^st of October to the 7^th of the same month. The one-week celebrations were in reverence to the People’s Republic of China established in 1949.

What Happens During The Chinese Golden Week?

During this time, the workers of different manufacturing industries and businesses break for the seven days of the Golden Week.

It is when employees get to meet up with friends and family to have fun and bond more.

This means that any business transactions are put on a halt until the Golden Week is complete.

Shipments tend to delay, and businesses from other countries that rely on supply from China’s industries run short of stock during that week.

What Is The Difference Between The Chinese Lunar New Year And Golden Week?

The Chinese Lunar year allows Chinese people to celebrate the Chinese New Year in the Chinese calendar.

It takes place at the beginning of the year between January and February.

On the other hand, the Chinese golden week takes place on the first seven days of October.

The Chinese Lunar year celebrates a new year in the Chinese calendar. While the Golden week celebrations celebrate the Peoples Republic of China attained in 1964.

The two celebrations also differ on the time durations for celebrations.

The Chinese New year celebrations last for two weeks, while the Golden week celebrations occur within a week.

What Are The General Impacts Of Golden Week In China?

The golden week has had tremendous effects on business in China and worldwide following the closure of businesses and china factories.

The government as well observes the Golden week celebrations and thus takes a break from its operations.

This translates to processes that require government clearance certifications being put on a halt until the week comes to an end.

Commercial products are also suspended from being imported or exported following the increased flow of incoming and outgoing tourists.

Ports are also on schedule to run but with limited staff, as most of them have departed for the golden week events.

The Golden week impacts can trickle down to affecting the global business environment. It is because China acts as the leading global supplier for various businesses across the world.

Since various Asian countries observe the golden week, trade operations significantly decline since all staff members are on holiday.

How Will Golden Week Impact My Shipments From China?

Shipments that happen days before the golden week of China are exposed to expensive rates for air freights and ship freights.

There is also increased demand for shipments from China hence the cause of the high rates charged for shipping.

This is because of the increased demand for stocks from business persons before the commencement of the golden week.

It helps boost their sales once factories shut down in China during the golden week.

Does The Chinese Golden Week Influence Blank Sailing?

Yes.

However, blank sailing happens after the events of the golden week due to bulk demand for goods following the closed factories.

Can The Golden Week Impact My Supply Chain Even If I Do Not Ship From China?

Yes.

The Golden week has resulted in the increased scarcity of capacity for shipping, especially to shipping services within the Asia-pacific region.

Other Asian countries fully observe the Golden week celebrations.

Asian countries serve as the other leading supplier of products and services to other countries.

Therefore, if you are not shipping from china, you are most likely shipping from these Asian countries.

It affects shipping even though it is directly not from China.

Additionally, shipping containers become scarce and unavailable all through from August to September across the Asian-Pacific countries.

Do Freight Rates Hike During The Golden Week In China?

Yes, there is increased demand for higher space for shipping; all shipping lines resort to hike their price pre and post the golden week events.

The golden week also causes the truck services to increase their prices.

Generally, shipping during the golden week and days before and after the golden week is very costly due to increased freight rates.

Does The Golden Week Celebrations Affect Contract Manufacturing In China?

Yes, China manufacturers also observe the golden week celebrations. As a result, they will close their dealings and get back once the celebrations are over.

The golden week celebrations affect China manufacturers and halt all businesses and factory dealings to observe the week.

How Should I Prepare For Golden Week?

The golden week presents many inconveniences, especially to clients expecting shipments from China and neighboring Asian countries.

However, as a business owner, there are five ways in which you can prepare yourself to help evade the skirmishes of the golden week.

First of all, you need to have a freight forwarder in place. Freight forwarders are convenient in terms of getting in touch with the intended supplier.

Additionally, freight forwarders also have a transparent background on what happens during the Golden Week.

Freight forwarders help advise you on the best time to conduct sales and highlight the best means of transport during this time.

They also get to assist in presenting goods that are urgent to clients on time.

Secondly, arrange to book your shipments earlier to the golden week events. It is advisable that if you are using air freight to make bookings for shipment two weeks earlier.

If you are shipping by ocean, make preparations one month before the golden week. This helps your goods avoid the congestion caused during shipping.

Earlier bookings also allow for your goods to arrive on time.

Another way to adequately prepare for shipments for Golden week is opting for FCL shipping rather than LCL shipments. Most ports operate on temporary staff, and LCL requires offloading at various stop points.

This creates inconveniences since there are no workers to make the offloads; hence the goods will delay at the ports until the staff is back.

It is best to use FCL shipments to avoid these hurdles as they require less interference with the cargo hence easy to ship during the Golden Week.

Another way to prepare for the Golden week is to carefully select the best and convenient means of transport. Air transport might be the fastest. However, congestion at the airport can result in your cargo getting rolled.

This is because transport means that offer the shortest time for travel is prone to overbookings.

A multimodal means of transport that incorporates various means of transport is best for use for urgently needed goods.

Moreover, to avoid incurring chassis and trucking fees, PTL offers the best solution. Partial Truck Load does not have to make stopovers at trucking terminals.

Thus there are no trucking fees attached.

There are also incidences of chassis shortages which prompts trucking companies to incur chassis split fees to avail the chassis at the port.

These costs are avoidable with the option of using the partial truckload option.

Is Consolidated Shipping A Good Option Following The Chinese Golden Week?

No. It is because consolidated shipping calls for the need to make various stops at terminals to unload cargo.

It creates inconvenience since time is of the essence following the massive demand for shipments during this season.

Opting for the FCL shipping method is the most convenient and less time-consuming for shipping around the golden week in China.

Do Things Get Better Immediately After Golden Week?

No, it takes quite some time before things get back to normal after the Golden Week.

Factories get back to deal with the pre-dominant backlog at their firms. Cases of shipments getting rolled at, canceled, and prone to blank sailing are very rampant and need to be addressed as well.

Therefore, there is still much backlog to deal with before getting back to normal after the golden week.

How Do I Avoid The Freight Capacity Crunch During Golden Week?

Freight capacity crunch stands out as the most common problem experienced during the Golden Week.  Therefore, to avoid inconveniences such as cargo rolling, consider the following.

Opt for the means of transport that have the longest transit time. During Golden week, most cargoes tend to book shipment methods with the fastest transit times.

This results in overbooking, which increases the chances of cargo getting rolled. On the other hand, slower means are less likely to expose shipments to getting rolled, and there is less overcrowding.

Another significant way to avoid a capacity crunch for shipments that travel by land is to include an alternative to the regular discharge port.

It allows the cargo to opt for alternatives that are not congested, especially during the Golden Week. Chances of even falling for a cheaper rate are higher with this shipping model.

What Are The Golden Week Effects On E-Commerce Shipping From China?

The e-commerce sector thrives primarily during this season. This is because most people want to enjoy their holidays with family and friends.

Most orders are thus made through online platforms since most of the businesses are closed during the golden week season.

Generally, spending on e-commerce is usually on a large scale during the golden week in China.

Here are more information about e-commerce shipping from China.

What Is The Best Incoterm When Shipping During The Golden Week Rush?

Incoterms for shipping during the Chinese golden week are dependent on the space to which the cargo occupy. Additionally, it is dependent on ports of origin and their destination.

There are numerous incoterms, including FCA, CPT, CIP, DAT, DAP, etc. They are classified into various groups, each defining the terms for the incoterm.

Freight forwarders come in handy in helping to choose the best incoterm for your cargo, especially during the golden week.

It is essential to consult with them and agree on the best incoterm during this season as they all have different properties.

What Are The Risks Of Ocean Freight Transport During Chinese Golden Week Rush?

The significant risk of cargo that opts for ocean freight during this season is the risk of being rolled over.

This means that the cargo might miss being on board the shipping vessels.

This is majorly caused by the overwhelming capacity caused by the high bookings by various clients.

There are also risks of increased ocean freight rates due to the increased bookings.

Is The Cost Of Cargo Insurance Affected By The Chinese Golden Week Celebrations?

If your cargo is not insured and is doing so during the peak season, prices might differ slightly, or sometimes they do not change.

The main aim of insurance covers is to facilitate compensation for your cargo in theft or damage.

Cargo is highly susceptible to damage or theft, especially during the peak season, such as the golden week in China.

LCL shipments are most prone to theft because of the various handlings at different terminals.

It is advisable to thus acquire an insurance cover for your cargo to evade such misfortunes falling on your cargo.

What Are Some Tips For Shipping During Golden Week?

Below are some of the ways that shippers can create convenience during the Golden Week.

Plan Ahead

This is achieved by making early bookings for freight. Thus for air freight, a week earlier and for ocean freight, a month earlier is advisable.

Also, avoid using LCL shipping during the golden week. Majorly use the FCL shipping method.

Avoid shipping containers that are likely to get rolled. For example, the 45HC containers are likely to be rolled due to their large size.

Lastly, avoid making bookings for multiple containers under a single bill of lading.

Account For Extra Fees

Shipping during the golden week is bound to attract various types of fee charges. This includes a fee for trucks as they wait for the cargo at the port.

There is also a split chassis fee imposed on the chassis as they are transported to the port. Moreover, if you are considering using the air freight and ocean freights, be ready for extra charges,

Airfreight and ocean freight rates increase following the demand for goods during the golden week.

Ensure That All The Required Documents Are In Line With Customs Requirements For Shipping

The last thing you would wish for during the Golden week is for your cargo not to be authorized due to missing information.

These include HTS codes, commercial invoices Cis, and other relevant documentation and information for your shipment.

How Can A Freight Forwarder Help Mitigate The Effects Of Chinese Golden Week?

Freight forwarders can be of help during such times of acquiring shipments from China.

As a result, freight forwarders familiarize themselves with other means for transportation to which they can use to aid shipments during this time.

They further make price comparisons for these modes of transport and offer tracking services to clients from shipping to the arrival of the shipments.

Freight forwarders also keep clients in the know following shipping pre and Golden post-week.

Freight forwarders also make sure that your cargo reaches the stipulated destination despite constraints of temporary staff at the vendors’ sites. It is common for most staff to switch jobs during the Golden week events.

What Is The Safest Way To Pay Chinese Suppliers During The Golden Week?

Various suppliers have different paying methods that every client adapts to.

Freight forwarders understand the various payment methods and advise accordingly on how to pay.

In terms of safety, the suppliers have adapted the safe methods for which to make payments to.

Therefore, as a client, it is best to familiarize yourself with the stipulated payment methods.

Lastly, it is advisable to make payments before the golden week. It assures the possibility of your shipment arriving on time.

Moreover, paying suppliers during the golden week is risky as most suppliers might adapt to new businesses.

It results in long and strenuous processes of recovering back the money.

The safest way to therefore pay suppliers is through making early bookings before the golden week. If the golden week catches up with you, it is best to wait for the manufacturers to start their operations again.

This way serves as an assurance for getting the goods you have paid for.

How Does China Warehousing Work During The Chinese Golden Week?

Warehousing China staff during this Chinese special week are also on a break as they celebrate the golden week.

Thus most warehouses are closed down during the week. A few maintenance staff who are on shifts help to keep tabs on the warehouses.

However, typically, all warehouses are closed for business during the Chinese new week season.

Are There Any Pros To The Chinese Golden Week?

The Chinese Golden week does not entirely result in negative influences. It also presents a business opportunity for the decorative and hospitality Industry.

Vacation travelers in Chinese ought to be among the booming businesses in Chinese during this time. Most people are on travel to meet up with friends and relatives and have a good time.

There is also a significant sale on luxury items and decorative items such as the lanterns at fireworks that light up during the occasions.

The Chinese golden week records an increase in domestic shopping among Chinese. Therefore, any business that avails its products in the Chinese market during the Golden week makes massive profits.

How Do I Handle Post Golden Week Backlog?

Backlog, especially during the post-Golden week of China, can be very frustrating, especially for business owners who urgently require their cargo.

However, things can be hastened for those who have urgent shipments. Freight forwarders come in handy in such situations.

Making communications to vendors as well as freight forwarders concerning the urgency of the cargo is advisable.

Provide all the necessary information and logistics concerning the cargo and let the freight forwarder help you get your cargo on time.

For all your freight forwarding services, contact Tj chinafreight now.