Made in China. Much has been done about this phrase, its origin simply indicates the origin of the production of a certain commodity. Today, it is no longer just about international trade. As a label, Made in China can sometimes subtly indicate the quality of goods or low labor costs. In popular culture, it's even been made into a song.
For many countries, this label is a legal requirement for all products imported by sea or air and sold within their borders. Given that China is the world's largest exporter, it's no surprise that many items you encounter in your lifetime carry this label.
What does China export?
Machines such as computers, broadcasting equipment and telephones make up the bulk of China's exports—more than 40 percent of its total. This is followed by textiles, metals and chemical products.
Below is a list of the most exported products from China:
1. Machines (43%)
Computers (6.6%)
Broadcast equipment (5.6%)
Telephone (4.1%)
2. Textiles (12%)
Women's sweaters, suits, etc.
3. Metals (7.3%)
Steel bars, iron structures, etc.
4. Chemical products (4.6%)
Pesticides, fertilizers, antibiotics, etc.
5. Transportation (4.5%)
Auto parts, passenger and cargo ships, motorcycles, etc.
6. Plastics and rubber (3.9%)
Rubber tires, plastic household items, etc.
Overall, China's top 10 exports accounted for more than two-thirds of its total global shipments. China's total exports accounted for 7.46% of the world's total - indicating the export advantage of the Asian giants.
Where does China export to?
About one-fifth of Chinese exports end up in the United States. China's top five export partners are:
United States (19%)
Hong Kong (14%)
Japan (6.3%)
South Korea (4.6%)
Germany (3.2%)
Nearly half (49%) of Chinese exports remain on the continent. Its top destination in Asia is Hong Kong (14%), followed by Japan (6.3%) and South Korea (4.6%).
In general, if all goes well, LCL shipping will not take longer than FCL shippingin terms of transit time. It might even be faster if you're lucky enough to make sure the remaining space is right for your cargo at the last minute.
Shared Containers, Shared Responsibility
However, you may experience delays while waiting for other shippers to group their shipments and have them ready. Also, in the event of any paperwork errors, delays are likely to occur as the entire container may be held by customs. While you don't want to be held back by someone else's mistakes, you should make sure your shipments are ready on time and that your documents are filled out correctly and accurately.
Auxiliary port
Another possible delay issue is if you're shipping to a lesser-known port. Most international trade routes offer frequent and fixed sailing dates. But sending your cargo to a secondary port means you may have to wait a few weeks for your next sailing date, and then have to wait even more for a local feeder to transportyour cargo from the main port.
Delays are not uncommon if your shipment is through transhipment and/or multimodal transport. As mentioned above, your cargo may need to be unloaded and transferred to another container or wait for other cargo to be loaded into your container. As for multimodal transport, more logistics are required as your cargo needs to be transferred from the deconsolidation port to the inland terminal and onwards.
Things to remember:
LCL pricing depends on the volume of the shipment, not the weight. It only becomes a problem when weight becomes a factor when it is too heavy and is being trucked to and/or out of port. Here is a video on how to calculate LCL shipment volume to guide you.
Motor vehicles cannot be transported by LCL.
Depending on your item, country of origin and destination, additional documents and certificates may be required.
Your shipment may be damaged in transit if other shipments are not properly packaged. Other factors including severe weather at sea can also cause damage to the cargo. Transshipment and intermodal transportcan lead to a higher risk of damage to your cargoas it passes through more hands. That said, be sure to pack your shipment properly to prevent damage from possible rough handling.
In ocean shipping, there are two main forms of containerized cargo - Less than Container Load and Full Container Load. As their names suggest, LCL deals with goods that take up less than the entire space of a full container, meaning a container must be shared, whereas FCL simply means owning a full container on its own.
To learn more about these two different types of containers, read our pages on LCL Shipping and FCL Shipping.
LCL Shipping: How It Works
Also known as "LCL", LCL shipping essentially refers to combining various goods in a single container. Since this involves sharing a container, it's a bit more complicated logically and requires more and better coordination to make sure everything runs smoothly and according to plan.
Book LCL
When you decide to ship LCL, you need to provide the freight forwarderwith the dimensions and weight of your shipment. Documents and forms such as bills of lading, commercial invoices, cargo packing lists, etc. must also be completed and submitted. Depending on your cargo type and destination port, additional documentation may be required.
Get your item ready
LCL shipments are usually shipped on a fixed schedule, weekly or bi-weekly, depending on the destination port, so timing is critical. The grouping of LCL goods is carried out in one warehouse, called the Consolidated Warehouse of Origin.
Your freight forwardercan arrange for your shipment to be picked up, which is more common practice. Alternatively, you can also ship the goods to the consolidator warehouse yourself. But remember, if you choose the latter, your shipment needs to arrive fully prepared, packed and ready to load. If you prepare the shipment yourself, be sure to read our guide on how to calculate the volume of a LCL shipment using Tetris.
Whichever method you choose, please note that your shipment must have enough time to reach the warehouse. If the warehouse is located/close to the port of departure, the deadline for your cargo to arrive at the consolidation warehouse is usually 7 days before the sailing date. It depends on the location of the warehouse. For inland warehouses, the deadline will be earlier given that it takes more time to get the container to port.
This is to allow sufficient time for all LCL loads in the container to be properly LCL. Please give us our article on how to properly prepare a LCL shipment to guide you.
Transshipment to port
Once the LCL container is packed and ready, it is shipped to the port of departure as specified in the contract/booking. Port deadlines for containers are usually around three days before the sailing date. After the combined cargo arrives at the port, it is transferred to the shipping company and then shipped to the port of destination.
Transport
If you're shipping to a secondary port, your LCL cargo may be unloaded at a transshipment point, where it's either shipped to another container or waits for more cargo to fill the container before continuing on to its final destination.
In layman's terms, this is similar to what happens with your luggage when you're in transit at the airport. It needs to be unloaded from the plane you landed on and transferred to your next flight.
Reach the destination
After the LCL container arrives at the destination port, it is taken over by the destination agent of the freight forwarder. He/she will collect the containers and deliver them to a warehouse called a destination de-packing warehouse. There, the cargo in the container is broken up into individual LCL loads.
Receive your item
At this time, the consignee can go to the warehouse to pick up the goods. Alternatively, you can have an agent handle the shipment to the consignee, in which case your item will be transferred from the destination unpacking warehouse to the final destination warehousebefore it is delivered to you.
Dominican exports to North America are dominated by the United States and Canada
The United States remains the main importer of Dominican Republic exports, and if positive growth expectations are realized, economic growth in the United States as the Dominican Republic's main trading partner will drive the Dominican Republic's own growth.
Exports from the Dominican Republic to Europe
Switzerland, the Netherlands, the UK, Germany and Spain are the top five European business partners for the Dominican Republic. Overall, it is the Dominican Republic's second-largest export market after North America.
Traditional products such as cigars, cocoa beans, bananas and liqueurs make up the bulk of the Dominican Republic's exports to European countries. However, the variety of products exported to Europe has increased in recent years, from a concentrated model where five main products account for 80% of total exports to a diversified model with less reliance on a few products.
Medical devices, ferroalloys, footwear or plastics are some of the products that have begun to gain traction in Dominican exports to Europe in recent years. The Netherlands is the second largest customer of the footwear industry in the Dominican Republic and the third largest customer of plastic products.
Germany, Belgium and the Netherlands are the second, third and fourth largest importers of medical devices to the Dominican Republic, respectively. Needless to say, the heatmap of Dominican exports to Europe is changing.
Dominican Republic exports to Asia: India and China
Exports to India: a highly concentrated market
India is the fifth largest importer of goods from the Dominican Republic. Dominican exports to India were valued at $592 million in 2016, almost all of which came from three products: 90 percent from gold exports, 5.9 percent from ferroalloys and 1.8 percent from cocoa beans.
Exports to China: Raw Materials Continue to Dominate, Diversification Trend Begins
The trade balance between the Dominican Republic and China clearly favors the Asian powerhouse, with imports from the Dominican Republic accounting for 14% of the Dominican Republic's importsin 2016. On the other hand, Dominican exports to China accounted for only 1.4%. all.
However, despite the modest numbers in the context of mutual willingness and cooperation, exports to China continued to experience the greatest growth in Latin America and the Caribbean.
Exports of raw materials to China account for more than half of the export value. Exports of medical devices also played an important role, accounting for 10% of total exports, and China was the fourth largest importer of the industry.
One of the most important concepts in ocean freightthat many exporters don't know is the carrier's return window. The return window is the allotted time set by the carrier during which a container must arrive at the terminal in order to be loaded onto the departing vessel.
Carriers typically set a four-day return window, although this may change as circumstances change. Narrow shipping return windows are one of the biggest reasons for delivery/pickup problems in the U.S. because many importers don't realize there's only one small window for your container to reach the terminal.
Why is there a return window?
Each carrier is granted a limited time to store its containers in port before sailing. In order to regulate time and space and avoid carrier storage fees, many carriers often set what is called an "earliest return date".
The earliest return date is the first day the shipper's container can arrive at the terminal. Any earlier, the carrier incurs charges that may be passed on to the shipper. Therefore, the latest date your container needs to arrive at the terminal in time for loading is called the cut-off date.
Back to the window timeline and how it works
Suppose that Terminal X allows Carrier Y a total of 7 days of free time to store its containers before its vessel sails. Carrier Y's ship's sailing date has been set to Sunday, so Carrier Y may set the earliest return date for the container to return to the terminal to be Monday. Returning the container early will result in a storage fee being charged by the terminal. Your container also needs to arrive at the terminal in time for loading, which means that carrier Y may set a deadline on Thursday. This means that you, the shipper, are granted a Monday to Thursday return window to ship your loaded container to port without any additional cost.
Many carriers allow containers about 4 days of free time outside the port. This means that you can pull a container out of port for loading as early as last Thursday, given that the earliest return date is Monday. This is called pre-pulling.
1. Prepare the goods in time and receive the goods on the pre-agreed date
Unfortunately, it is very common for suppliers not to have their goods ready on the day of pickup. This snowballed and prevented loading onto the ship on the expected date. Here, the freight forwarder can notify and remind you of the upcoming pickup date. However, it is the exporter's responsibility to have the goods properly packaged and ready for pickup. If the exporter fails to comply with the pick-up date, he may have to wait two weeks until the next ship leaves. During those two weeks, a lot can happen, including supply chain disruptions and breaches of contracts with third parties.
In this case, freight forwarderscan help find alternatives, such as loading the cargo on another vessel with a shorter transit time. But there may not always be a viable option for this situation. It is the supplier's responsibility to ensure that production is completed on time so that pick-up and loading dates can be determined.
2. Prepare and provide all necessary documents, especially if the goods require special permission to be transported
As an importer, you must always be aware of all necessary permits required for your goods. But the responsibility for providing these documents rests with the provider. If your provider is not responsible for this, you should consider switching providers. If you cannot rely on your provider to prepare these documents, it may be a sign that you cannot trust him.
Freight Forwarder Responsibilities
1. Pressure the shipping company to give you the space they need on board
With ships fully loaded, carriers end up having to prioritize certain cargoes. This caused some non-essential clients with whom they have no personal relationship to fail to load. The freight forwarder'srole here is to negotiate with the liner to secure the space the importer needs. Note, however, that the freight forwarder's influence here is limited as the shipping company always has the final say.
2. Understand the importer's needs and advise him on the best shipping options
It is the freight forwarder's responsibility to know if a vessel will be transshipping on its route and to forward this information to its customers. This may seem like a small detail, but it makes a big logistical difference. Transshipment means that commodities are unloaded from one vessel and loaded onto another. This greatly increases the chance of unforeseen events and delays and the associated costs. Your freight forwarder should inform you of these details so that you can make an informed decision about your shipment.
3. Any additional paperwork required to check certain products with customs authorities
If you don't know if your item requires additional documentation to ship, you can provide the HS code of the product to your freight forwarder so that he can check with the relevant customsauthorities.
The importance of small details
Make sure the Incoterms you have with your suppliers are properly reflected in your contracts and that providing accurate and accurate information may seem like trivial details. However, taking the time to do these things can help prevent unnecessary delays and complications. Small details are often the factor in whether you will incur additional charges or if your shipment is facing delays.
That said, keep in mind that you can take all precautions, but at the end of the day, your shipments are still subject to factors beyond your control. We recommend that you always purchase cargo insurance for extra protection, but be aware that this will only limit the blow. Knowing the responsibilities of the other parties involved will help you better communicate with them so they can stick with the deal until the end of the deal.
International shippingis a complex process and there is no magic formula that can be used to avoid complications. You can only do what you can control, which is to learn as much as possible, get along with trusted suppliers and freight forwarders, and avoid troublemakers. Most importantly, perform your duties.
International shipping involves multiple parties, so when something goes wrong, it can be difficult to identify the party responsible for every part of the process. As a participant in this intricate relationship, you need to understand not only your own responsibilities, but the responsibilities of other parties involved. Not knowing the responsibilities of your suppliers or freight forwarders is a huge risk for importers. In an industry as complex as ocean shipping, there is only a very fine line between risk and logisticaldisaster.
Importer's responsibility
1. Submit the necessary shipping data to the agent so that he can coordinate the shipment with the supplier
Such data includes the contact's email, name, phone number, and the name of his company. This information is key to streamlining the process. This is especially true when you are pressed for time. Given the time difference, it is best to provide this data as early and as accurately as possible. It can take up to two days to start processing your import from the moment you provide your supplier's contact information to the freight forwarder.
Advice: Once you confirm your purchase and know your item is in production, you should start managing your bookings with your forwarder to speed things up, rather than waiting days or even weeks for production to complete. The origin agent can update the freight forwarder at any time during the production process so that you can amend your booking if needed.
2. Know the working conditions of the Incoterm you choose for international sales, such as the back of the hand
It is not uncommon for suppliers to want to modify previously agreed terms. They may want to convert from FOB to CIF, which can be risky, or to EXW, where the importer takes care of most of the process.
What is the role of the freight forwarder if the Incoterm has not been agreed at the last hour?
At this point, there is nothing the freight forwarder can do except get a reply from both parties. Ultimately it is up to the importer to ensure that the supplier follows the agreement and most importantly, that the terms and conditions are properly reflected in the contract.
3. Liaise with your supplier to decide who will provide the specific documentation your item may need at origin and destination
Depending on the nature of your product, you may need to submit additional specific documents.
For example, a test report is one of the most common certificates of origin when importing into the EU. It certifies that the shipped goods meet the minimum quality conditions (strength, durability of materials, etc.) required by the European Economic Community.
In addition to different certificates of origin and destination, you may sometimes need to present other specific documents for import. In the case of importing honey into the EU, a certificate of origin is always required. And because it is an animal product, both importers and exporters must be registered in TRACES (Trade Control and Expert System).
The consequences of not preparing these specific files for your imports are dire. If your shipment has reached its destination and the deadline for you to present these supporting documents has passed, customs will ask for one of two solutions: re-export the shipment to the country of origin or destroy it. The important thing to note here is that any additional costs incurred as a result will be fully borne by the importer.
First, a fire in Maersk Honam in the Arabian Sea was a stark reminder of the dangers the crew faced in the ocean. The Singapore-flagged vessel was en route from Singapore to Suez with 12,416 TEUs on board when the fire broke out. At the time of writing, the blaze, which had been raging for five days, was under control, but four crew members were reported to have died in the blaze.
This first underscores the importance of crew safety at sea. But as a shipper, knowing that you have ocean freight on a burning ship is worrying. The Indian Coast Guard classified the blaze as a "chemical fire", which raised questions about the safekeeping of cargo and the declaration and documentation of all cargo, whether dangerous or not.
By law, all carriers are obliged to provide a minimum amount of insurance. But as the word suggests, it offers limited coverage. As a shipper, you can and should purchase additional cargo insurance to further protect your merchandise. This will cover your shipment in storage and in transit until it reaches the buyer's safe hands.
The stowage list for each ship is prepared based on the data on the manifest provided by each shipper carrying the cargo. Accurate cargo declarations play a vital role here. Due to the large volume of shipments by sea, customssimply does not have time to physically inspect and verify each shipment.
As a shipper, you can only ensure that you play your part by filling out all documents and declarations as accurately as possible. This includes bills of lading and packing lists, etc. You may not have control over other cargo on the same ship, or LCL containers, but you should take the worst-case scenario of every shipment - cargo insurance.
What is a general average?
There is a concept in the maritime world that everyone in the industry should be familiar with - generally average.
Legal Definition of General Average
"A principle of admiralty law, in the event of an emergency, if the cargo is abandoned or costs are incurred, the loss is prorated among the parties who have a financial interest in the voyage."
Unless you have general average insurance, general average is separate from the ocean cargo insurance purchased for your cargo. But with insurance, you can at least insure against loss or damage to your cargo.
Cargo insurance varies by cargo, and different insurance companies have different names. In general, however, all cargo insurance should cover physical damage to the cargo due to unforeseen circumstances beyond the owner's control. These apply to marine accidents, shipwrecks, pirates, etc. All this is provided that the goods are properly packaged according to their type of transport. Appropriate declaration forms must also be completed if necessary.
If your cargo suffers damage due to poor packaging, it is unlikely that your cargo insurance company will cover those losses. Please contact your freight forwarder (TJ chinafreight) or insurance company for more information on the policies available to you.
As the world's largest importer, the US import process can be described as complicated. In addition to the regular paperwork required for any ocean shipment (such as a bill of lading or packing list), there are a number of other costs to consider, such as fees and taxes. In this post, we'll take a deep dive into one of them: customsbonds.
A customs bond is like an insurance policy that guarantees payment of all duties and charges related to the goods. As an importer, you purchase a bond from a surety company that assures the U.S. government that all applicable shipping costs will be paid.
By sponsoring the importer, the sponsoring company is bound by the importer's liability. If the importer fails to fulfill the payment, the guarantee company may be obliged to perform and fulfill the guarantee conditions on its behalf before taking legal action against the importer.
It is important to note that customs bonds only cover U.S. duties and duties, not imported goods.
When do I need a customs bond?
As a U.S. importer, certain goods you bring into the country require you to submit a customs guarantee:
Merchandise valued over $2,500 for commercial use
Goods required by other government agencies, such as weapons or food
Without a customs guarantee, your imported goods will not be able to clear customs.
Difference Between Single Entry Bonds and Continuous Bonds
U.S. importers have two types of bonds to choose from: single bonds and continuous bonds. Which type of bond you choose depends on how often you import into the United States.
Single entry bond
A single-entry guarantee, also known as a single-transaction guarantee, is only valid for one transaction (import), as the name suggests, and can only be used at the port where the imported goods arrive. A one-time or occasional import is generally recommended. This is the better option if you import less than 3 times a year. However, much depends on the cost of bonding, and the breakpoint can vary between two and five shipments.
Please note that the Importer Security Declaration (ISF), which needs to be submitted before your shipment leaves the exporting country, is not included in the single entry bond and must be purchased separately.
Continuous bonding
Continuous Bonding, on the other hand, applies to an unlimited number of imports through all U.S. ports within a 12-month period. It covers all shipments during this period, so you don't have to get a single entry bond every time. This is the cheaper and better option for frequent importers who achieve three or more imports per year.
Serial bonds also include your ISF, so you don't have to make multiple purchases. Continuous bonds are automatically renewed each year until terminated by the guarantee company or the importer himself. Purchasing continuous bonds does not restrict importers to freight forwarders or customs brokers.
Note: If your customs broker assists U.S. Customs and Border Protection with customs clearance, you may be entitled to your broker bond.
Port capacity in Mexico increased from 260 million tons in 2012 to 406 million tons in 2017, an increase of more than 56%. Shippingaccounts for 90% of the world's economy, so it's important to know Mexico's main seaports to better understand how they operate. Below are the top 5 ports in Mexico.
5. Port of Ensenada
The Port of Ensenada is a deep-water port on the west coast of Baja California, just 110 kilometers from California, United States. It has cargo and cruise terminals and offers container unloading at its terminals.
The three most important overland routes for cargo transportation to and from the port are the Tijuana-Ensenada Expressway and the Tijuana-Ensenada and Tecate-Ensenada Federal Highways. Most cargo in and out of the Port of Ensenada uses these three routes, which also connect to major U.S. highways. Additionally, these routes provide direct connections to major U.S. border crossings such as Tijuana, Tecate, and Mexicali.
4. Port of Altamira
The Port of Altamira is located on the east coast of Mexico, facing the Gulf of Mexico. It is connected to 125 ports, most of which are located on the Atlantic coast. Domestically, its land and rail connections connect the port directly to the northern and central regions of the country, including important cities such as Monterrey, Saltillo, Reynosa, Guadalajara, Mexico City, and more.
3. Puerto Veracruz
Located 500 kilometers south of the port of Altamira, is the third largest port in Mexico, Puerto Veracruz. The Puerto Veracruz is also on the east coast of the country with direct access to the Gulf of Mexico.
Today, the port of Veracruz is the oldest and most historic port in the country. As the first port to be equipped with automobile transportation equipment, it is one of the most important ports for the Mexican automobile industry.
2. Lazaro Cardenas
Located in Mexico's Pacific Basin, the port of Lazaro Cardenas is one of the largest seaports in the region.
This deep-water seaport accommodates post-Panamax vessels and handles containerized, dry bulk and liquid cargoes. A new semi-automated terminal opened in 2017 and can handle more than 1.2 million containers per year. As a result, the port's capacity is expected to increase from 27 million tons to 29 million tons.
The port is well connected to Mexico City, just 620 kilometers away, and the U.S. Mexican rail network south of Kansas City.
1. Port of Manzanillo
Mexico's largest port, the Port of Manzanillo, is located in the state of Colima on the Pacific coast and handles Pacific cargo for the Mexico City area. Most importsdestined for central Mexico pass through the port of Manzanillo, which is an important port for Asian importers and exporters due to its geographic location.
Most of the port's exports go to the neighboring United States, Canada, Guatemala and Colombia, but also to countries further afield, including Japan, China, India, Malaysia and Singapore. Its main exports include beer, automobiles, cement, sugar, copper, steel pipes, carbon, glucose and resins.
