/ By tjchinafreight ivy / Shipping

EU imports of Russian LNG surge by 50%

Shipping brokerage Banchero Costa said in its latest weekly market report to Xinde Maritime that the EU's total LNG imports from Russia in the first quarter of this year soared by 50% year-on-year.

It is for this reason that the EU became the world's largest importer of LNG in the first quarter of 2022.

Europe frantically imported LNG in the first quarter

Europe frantically imported LNG in the first quarter
Europe frantically imported LNG in the first quarter

The latest data provided by Banchero Costa for Xinde Maritime Network shows that in 2021, the European Union (27 countries) is the world's third largest importer of seaborne LNG, accounting for 15.8% of global seaborne LNG imports

In 2021, China will be the world's largest LNG importer with a share of 20.2%, followed by Japan with 19.7%.

Earlier in 2020, the EU imported 62.8 million tonnes of LNG, down 4.2% from 2019.

In 2021, EU LNG imports will actually decrease further, to only 58.5 million tons, a further 6.8% drop from 2020.

But the turning point came so suddenly. In the first quarter of this year, with the outbreak of the Russian-Ukrainian conflict, dramatic changes took place.

In the first three months of 2022 (the first quarter of this year), the EU imported 22.1 million tons of LNG by sea, a jump of 72.8% from 12.8 million tons in the first quarter of 2021. This made the EU become the world's largest LNG importer in the first quarter, with a share of 20.9%!

The United States and Russia are the main sources of increased European imports

The United States and Russia are the main sources of increased European imports
The United States and Russia are the main sources of increased European imports

The US is a major incremental contributor to European LNG imports, with the EU importing 10.4 million tonnes of LNG from the US in the first three months of 2022, an increase of 234.8% from 3.1 million tonnes in the first quarter of 2021. In the first quarter of 2022, U.S. gas accounted for 46.9% of European seaborne LNG imports.

In the first quarter of 2022, the EU imported 4.1 million tons of LNG from Russia, an increase of 49.1% from the 2.7 million tons in the first quarter of 2021. This is an all-time high. The EU has never imported more LNG from Russia than this year. In the first quarter of 2022, Russia accounted for 18.3% of EU seaborne LNG imports.

In fact, March 2022, when the Russian-Ukrainian conflict broke out, is also the highest month in history for Russian gas imports into the EU.

In March 2022, the EU imported 1.6 million tonnes of LNG from Russia, a 14.5% increase from February 2022 and a 34.3% increase from March 2021.

/ By tjchinafreight ivy / Shipping

Greece’s Almi Marine returns to the newbuilding market

Greece's Almi Marine returns to the newbuilding market
Greece's Almi Marine returns to the newbuilding market

Greek shipowner Almi Marine has returned to the newbuilding market after 15 years, placing an order for 3 bulk carriers at Dalian COSCO Shipping Kawasaki.

It is reported that Dalian COSCO Shipping Kawasaki and Almi Marine signed a construction contract for three 64,000-dwt Ultramax bulk carriers on April 21, and the new ships will be delivered in 2024. This is the first new ship order undertaken by Dalian COSCO Shipping Kawasaki this year, and the specific price has not been announced.

It is reported that Almi Marine started negotiating with Dalian COSCO Shipping Kawasaki about 4 months ago to order new ships. The initial plan was to order 2 Ultramax ships, but then the order quantity was expanded to 3 ships. This series of ships will meet the Ship Energy Efficiency Design Index (EEDI) Stage 3 requirements.

For Almi Marine, the Dalian COSCO Shipping Kawasaki order is the company's first order for a new vessel since 2007. According to Clarksons data, Almi Marine last booked a ship in 2007, when the company placed an order with STX Marine Shipbuilding for three 57,260 dwt Handysize bulk carriers, three ships from 2010 to 2011 Year delivered.

At present, Almi Marine's fleet has 7 bulk carriers with a total capacity of about 400,000 dwt, of which the youngest is the 58,635 dwt "Sole" built in 2013, which was acquired by Almi Marine in March last year.

Clarksons data shows that at present, Dalian COSCO Shipping Kawasaki has a total of 31 orders of 3.4892 million dwt, including 11 container ships and 20 bulk carriers, and the delivery time has continued until 2025.

/ By tjchinafreight ivy / Shipping

What is Electronic Export Information (EEI)?

What is Electronic Export Information (EEI)?
What is Electronic Export Information (EEI)?

EEI is data that must be submitted through the Automated Export System (AES) for shipments from the United States to a foreign country. The filing includes information about the sender and recipient of the goods, as well as information about the exported goods. The Census Bureau uses these documents to calculate U.S. trade statistics, and Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS) use the data to help ensure compliance with U.S. export regulations.

There are various nuances regarding the EEI application. Therefore, it is important to understand how the EEI reporting requirements apply to your shipments - when you need to declare and when your shipments are exempt from these requirements.

General EEI filing requirements

The EEI must be submitted with shipments from the U.S. to foreign destinations if any of the following applies:

  • Shipping a single item or item worth more than $2,500. (Note: Goods shipped from the U.S. to Canada are exempt from this requirement.)
  • The shipment contains goods that require an export license or license, regardless of value.
  • Goods are subject to International Traffic in Arms Regulations (ITAR) (link is external), regardless of value.
  • Shipped as a self-propelled vehicle.
  • When exporting "600 Series" items, (i.e. "xY6zz" format for items on the Commercial Control List (CCL) that were previously regulated by the United States Munitions List (USML).
  • Export under license exception Strategic Trade Authorization (STA) (link is external).
  • Shipments to China, Russia and Venezuela for military end use, regardless of value or content.
  • Goods contain rough diamonds, regardless of value (HTS 7102.10, 7102.21 and 7102.31).

Who submits the EEI?

In standard export transactions, the U.S. Principal Interested Party (USPPI) is responsible for submitting the EEI through AESDirect. However, USPPI may provide its freight forwarder (or other third party) a Letter of Authorization (POA) or written statement authorizing them to prepare and submit an EEI on their behalf. (In most cases, the USPPI is the same as the exporter.)

However, in a routed export transaction, the Foreign Principal Interested Party (FPPI) must provide a POA or other written authorization to submit the EEI to the USPPI or U.S. Authorized Agent. (In most cases, the FPPI is your ultimate consignee or foreign customer.)

/ By tjchinafreight ivy / Shipping

How Certificates of Insurance Affect Your Cargo Insurance Claims

How Certificates of Insurance Affect Your Cargo Insurance Claims
How Certificates of Insurance Affect Your Cargo Insurance Claims

In the freight industry, poorly organized documentation can have a significant negative impact on the shipment of goods and increase shipping risks, costs, time and fines. Now more than ever, trucking companies are moving towards a paperless approach to document management to achieve greater efficiency and initiative and reduce risk.
Typically, large shipping companies have to deal with hundreds of documents every day for customs clearance and delivery, from bills of lading, commercial invoices and certificates of origin to cargo insurance certificates, export licenses and packing lists. If that wasn't complicated enough, shipping companies also have to deal with a multitude of contacts, from trade and logistics companies to various international agencies and authorities.

How does a certificate of insurance affect your claim?

A certificate of insurance actually grants insurance rights to another party, someone other than the purchaser of the insurance. Regarding filing a claim, it is similar to handing over a signed blank check to the other party. In the case of a letter of credit, the right to make a claim is vested in the bank providing the letter of credit. However, for exports, the purchaser of the goods is entitled to a claim.

Ultimately, this means that when a claim occurs, the claim will be paid to the assignee of the insurance certificate, not the policyholder. However, the claim will be credited to the policyholder's claims history.

Customers do not need proof of insurance if all shipments are done using a letter of credit. Instead, the bank can be named as the lender's loss payee on the policy.

The importance of managing cargo insurance certificates

Cargo insurance certificates are one of the most important documents in the shipping industry as they carry the greatest risks inherent in them. A cargo insurance certificate is a document that indicates the type and amount of insurance coverage that is valid for a given item. It is used to assure the consignee that insurance is provided to cover loss or damage to the goods in transit.

Certificates of insurance typically include the following information:

  • Conditions of Insurance Coverage
  • Transport information
  • Additional/Special Coverage Conditions
  • Instructions or Actions to Take in the Case of Loss or Damage of Goods
  • Billing agent contact information
  • LIABILITY OF CARRIER, TRUSTEE OR OTHER THIRD PARTIES

Alternatives to Certificates of Insurance

If all you need is proof that you have insurance, a letter of insurance can be issued for this purpose. In fact, these letters can be issued as general proof of insurance or to confirm that a single shipment complies with the policy.

Here are some examples of situations where a letter of insurance is sufficient:

  • Carriers often require importers and exporters to certify that they have insurance before waiving insurance premiums.
  • Clients of importers/exporters want to be sure they have an insurance policy if something goes wrong with their goods. This is typically the case if the policyholder pays the premium in the sales agreement with the importer/exporter.

If you are not expressly required to provide proof of insurance, then you may only need a letter of insurance. If your insurance provider asks if you need proof of insurance, don't say "just to be safe." This request often results in wasted time and money.

/ By tjchinafreight ivy / Shipping

A Simple Guide to Dock Receipts

What is a dock receipt?
What is a dock receipt?

What is a dock receipt?

A receipt from a warehouse supervisor or port official certifying that the freight company has received the goods. Terminal receipts are used to transfer responsibility when export items are shipped by a domestic carrier to the port of shipment and by an international carrier to the destination. Terminal receipts are usually prepared by the freight forwarder or shipper.

On the terminal receipt, the authorized representative records the arrival of the cargo and provides information about the information received at the terminal. For liability purposes, the condition of the goods is also recorded. Any broken seals, damage to shipping crates, and other issues are recorded and discussed. A damages lawsuit in the case of lost, lost, stolen and damaged merchandise will require people to sift through receipts, bills of lading and other documents to see when the problem arose and who was responsible for shipping when the incident occurred.

Electronic Terminal Receipt

Many shippers offer electronic terminal receipts. Fill out and submit receipts using a computerized system, providing instant updates to anyone with access to the system. Electronic terminal receipts can also be printed out for your records and signed with an electronic authentication key to indicate the official signature of the authorized representative. Electronic systems are heavily used in the shipping industry as many people want to be able to track their cargo in real time.

Once the terminal receipt is signed, the carrier will be responsible for what happens to the cargo during storage at the terminal and before it is transferred to another location. If the load requires special handling, such as climate-controlled storage, this is noted and arrangements are made to ensure it is safe and secure. Guards are usually stationed at the dock to monitor traffic, with the aim of preventing theft and other losses. If a problem does occur while the shipment is at the terminal, the carrier may cover the cost of replacement or repair.

Many companies involved in the shipping industry offer standardized dock receipt forms that people can also generate themselves. When examining such documents, it is important to note who signed it and to read the details in the document carefully to confirm that it is accurate and complete. Questions or concerns should be addressed immediately.

/ By tjchinafreight ivy / Shipping

What is a manufacturing certificate?

What is a manufacturing certificate?

A manufacturing certificate is a notarized or certified document that certifies that the goods ordered were manufactured by the manufacturer and are exclusively at the buyer's risk and responsibility. Suppliers of finished products use this certification to show if any changes have been made to a specified recipe or process. The revision date needs to match the date on the master file to be valid.

How to use the manufacturing certificate?

The certificate of manufacture issued by the manufacturer must be on company letterhead and include the following information. The certificate should have:

  • Manufacturer's name
  • Product name
  • Batch number
  • Item Number
  • Revision code
  • Revision date
  • Certificates in support of claims of lack of product modification
  • The name of the quality control manager performing the certification
  • Signature of the above quality control manager
  • Date signed
  • Import Approval Certificate

Manufacturing Certification

Whether someone works in a manufacturing environment or is considering a career in the field, there are many different options available for certification. General manufacturing certification is not available, instead, manufacturing certification usually falls into one of two categories. The first includes an industry-related diploma or certificate. This is given after someone has undergone detailed work experience and training in a specific industry, such as an electrician or a tool and die maker.

The other category relates to specific aspects of the wider industry. Every company that produces goods falls into this category. The training will cover details of specific parts of this process. Jobs such as logistics, quality certification, safety and health training, and engineering technicians can be found here.

/ By tjchinafreight ivy / Shipping

Brazil removes import duties on some goods

Affected by the epidemic in the past two years, Brazil's poor population has increased, the proportion of the middle class has shrunk, and the inequality between the rich and the poor has widened.

Inflation has caused the prices of basic materials in Brazil to rise again and again, and the prices of canned food, preserved food, olive oil, vegetables, beef, coffee, etc. have all continued to increase. In addition to Brasilia being the most expensive city, Salvador, Curitib and Belo Horizonte also saw very big price increases.

Wages can't keep up with inflation, and Brazilians have begun to reduce expenses, change the family diet, replace more expensive beef with chicken, sausage, cream, etc., and reduce life and entertainment activities.
In order to fight inflation and stabilize prices, Brazil recently announced a reduction in import tariffs on some commodities.

Brazil removes import duties on some goods
Brazil removes import duties on some goods

The Executive Management Committee (Gecex) of the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy announced:

1. From now until the end of this year, import taxes on seven products will be cancelled, including: ethanol (the original import tax is 18%, the same below), coffee (9%), margarine (10.8%), cheese (28%) ), pasta (14.4%), sugar (16%), soybean oil (9%).

2. From April 1 to the end of this year, the import tax rate levied on electronic products and mechanical equipment will be reduced by 10%. This measure aims to promote the purchase of equipment for industrial production and reduce the prices of some technical items. In March last year, the Brazilian government cut tariffs on capital goods and telecommunications imports by 10 percent. Overall, the cuts will be 20%.

The changes came into effect after they were published in the Brazilian Federal Official Gazette on March 23. Combining all the tax cuts, the tax cuts generated this year are around R$ 1 billion.

However, the skyrocketing sea freight has also affected the Asia-Brazil route. The current sea freight is 5.7 times higher than before the outbreak!

/ By tjchinafreight ivy / Shipping

Maersk warns container shipping market to return to normal

Maersk warns container shipping market to return to normal
Maersk warns container shipping market to return to normal

Although Maersk's first-quarter results beat expectations, the shipping giant warned that the global shipping industry may gradually return to normal in the second half of the year.

On April 26, Maersk reported financial results for the first quarter of 2022, with revenue of $19.3 billion, underlying EBITDA of $9.2 billion, and underlying EBIT of $7.9 billion. Maersk said, "The first quarter results exceeded expectations," the quarter's results were driven by the continued abnormal conditions in the ocean shipping market, compared with the first quarter of 2021, the volume fell by 7%, and the freight rate increased by 71%. Maersk said: "The strong performance stemmed from exceptional market conditions within the container shipping market, with volumes down 7% compared to the first quarter of 2021, while freight rates increased by an average of 71%."

Given the strong performance in the first quarter, Maersk expects current market conditions to continue in the second quarter and raises its full-year 2022 outlook. Maersk once again significantly raised its full-year profit forecast as last year. Maersk expects full-year 2022 actual earnings before interest, tax, depreciation and amortization (EBITDA) to be $30 billion (previously expected to be $24 billion), an increase of 25%. Actual EBIT was $24 billion (previously expected to be $19 billion) and free cash flow would exceed $19 billion (previously expected to be around $15 billion).

"The already tight supply chain situation deteriorated further in the first quarter of this year, with the Russian-Ukrainian conflict adding to uncertainty," Maersk Chief Executive Detlef Trefzger said in a statement. "The current market situation is expected to continue in the second quarter. Going down, combined with higher contracted freight rates, we expect full-year 2022 results to be stronger than previously expected."

It should be noted that, unlike last year, the shipping giant also warned that this year's container traffic may actually decline, and the Russian-Ukrainian conflict and high inflation may have adverse effects on the global economy. The current performance forecast is still based on the assumption that the marine business will return to normal in the second half of 2022. Although it continues to be optimistic about the container shipping market this year, Maersk also expressed concern about global container demand based on the decline in freight volume in the first quarter, and lowered its outlook for global container demand growth from 2-4% to -1/+1%.

The shipping industry has made record profits in recent quarters, as surging consumer demand, blockages at major global ports due to the pandemic and the recent closure of airspace following the conflict between Russia and Ukraine have kept prices up.

Clarksons data shows that there are currently 861 container ships on order, with a total capacity of 6.57 million TEU, equivalent to 26.4% of the existing fleet. The data shows that the new ships ordered by the shipping giants in large quantities last year are also about to start delivering. This means that the state of high freight rates in the container shipping market will be difficult to sustain.

/ By tjchinafreight ivy / Shipping

Hapag-Lloyd fined $822,000

Hapag-Lloyd fined $822,000
Hapag-Lloyd fined $822,000

Approved by the Federal Maritime Commission on April 22, German carrier Hapag-Lloyd has been ordered to pay a civil penalty of $822,220 for 14 violations of U.S. shipping law -- $58,730 per violation Dollar.

The FMC's Enforcement Bureau investigated a complaint from freight company Golden State Logistics that Hapag-Lloyd imposed demurrage charges on 11 containers that could not be returned in time due to lack of storage space at the terminals (LA, LB ports) .

The Bureau of Enforcement launched an investigation into whether Hapag-Lloyd’s practice of imposing demurrage fees violated the U.S. Shipping Act and found that Hapag-Lloyd either failed to provide a location for the return of equipment or even did so when assessing demurrage fees. The location does not have an appointment to return the empty box.

This is part of an ongoing dispute over demurrage and demurrage (D&D) charges in the industry. Long controversial, D&D fees have become a hot topic in the industry as more and more containers are overloaded at terminals and ports over the past two years. In response to these complaints, the FMC has become increasingly vocal about fees, recently encouraging shippers and haulage companies to alert the Commission to disputes over fees.

Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)
Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)

Liner companies believe demurrage is necessary to ensure the efficient use of very scarce containers, while other stakeholders in the supply chain have complained that due to port congestion, container returns cannot be achieved within the stipulated time. Additional costs should not be borne by the business.

The findings of this incident will support the shipper's argument that it is unfair to charge when a timely return of the container is not possible.

The FMC said: “We have been focusing on the issue of container detention and demurrage for many years, providing multiple opportunities for parties to weigh possible solutions, and in the Container Detention and Demurrage Rules provide information on the collection of containers Specific requirements for the return of demurrage charges for empty containers, but despite such efforts, Hapag-Lloyd has not been able to change its behavior or practices.”

The FMC added that evidence showed Hapag-Lloyd had not changed its policy on container detention and demurrage rules. The FMC Commission provided extensive notice and opportunity for comment prior to developing demurrage and detention rules that clearly set out the criteria for imposing detention for the return of empty boxes, and when there is documentation indicating that there is not enough appointment time to return these It is unreasonable for Hapag-Lloyd to impose demurrage charges when shipping containers.

/ By tjchinafreight ivy / Shipping

Some countries or regions toy certification system.

In order to ensure the safety of children, many countries or regions have formulated strict laws, regulations and safety standards for toy products, and formulated corresponding certification systems according to international practices and national conditions. As an import and export party, it is necessary to understand the laws and regulations, safety standards and certification systems of the corresponding countries, and always pay attention to their changes and make corresponding adjustments accordingly, so that toy products can be exported smoothly and avoid the risk of notification and recall. This article briefly summarizes the certification systems of some countries or regions.

China

China Compulsory Certification（CCC
China Compulsory Certification（CCC

CCC certification

The full name of CCC certification is "China Compulsory Product Certification", and the English name is: China Compulsory Certification (CCC). It is a product conformity assessment system implemented by the Chinese government in accordance with laws and regulations in order to protect the personal safety and national security of consumers and strengthen product quality management.

EU

CE certification

CE certification is a pass for toy products to enter the EU market. In order to protect the life and property safety of the people of the EU member states, whether it is a product produced by an enterprise within the EU or a product produced by any country or region outside the EU, if it wants to circulate freely in the EU market, it must be affixed with compulsory certification. CE mark to indicate that the product complies with the essential requirements of the EU Directive on New Methods for Technical Harmonization and Standardization.

Germany

GS certification

GS certification is a voluntary certification based on Germany's "Product Safety Law" and tested in accordance with the European Union's unified standard EN or German industrial standard DIN. It is a German safety certification mark recognized in the European market. However, it should be noted that while the product meets the GS certification, it must also meet the requirements of the EU CE certification.

U.K.

UKCA certification

On December 31, 2020, the UK officially left the EU. The UK Toys (Safety) Regulations UKCA certification is revised and fully effective on 1 January 2021. On August 24, 2021, the British government issued the latest announcement on the requirements for the use of the UKCA logo on the official website: It was originally scheduled to be launched in the UK market (including England, Scotland and Wales from January 1, 2022, but not applicable to North America). Ireland) the period in which the CE marking can no longer be used has been extended until 1 January 2023. However, it should be noted that this notification is based on the premise that the UK and EU regulations are still consistent, that is, if the EU updates its regulations, and the CE marking on the manufacturer's products complies with the new regulations, then these CE marked products will not be used. UK market accepted. From 1 January 2023, products entering the UK market must be marked with the UKCA mark in accordance with regulations.

U.S.

"CPSC certification + UL certification + FCC certification"

CPSC (Consumer Product Safety Committee) is an important consumer protection agency in the United States, namely the Consumer Product Safety Commission. CPC (Children's Product Certificate) is the Children's Product Certificate. The United States requires manufacturers and importers to certify in writing that their children's products comply with the applicable US safety regulations, based on the qualified test report issued by a CPSC-accredited laboratory that meets the requirements of CPSIA and ASTMF963-17, toys and children sold to the United States Products must have CPC.

In addition to the regulatory tests that meet the CPC requirements, related products sold to the U.S. market for children under the age of 12 must also comply with the Tracking Label requirements. The purpose of this move is to ensure that when there is a problem with the product, consumers can trace the source to the responsible party to deal with related compliance issues. Therefore, traceability labels are required on both packaging and products (except for exemptions). If it is a durable product for infants and young children, it must also meet the relevant requirements of the Product Registration Card.

In addition to obtaining CPSC certification, some toys also need to apply for UL certification and FCC certification.