Shipping from China to the US

“Shipping from China to the US
China is the factory of the world and has been for many years. While the U.S. is increasingly inclined to shorten supply chains and increase domestic production, trade opportunities between East and West giants are unlikely to diminish anytime soon.
There are many articles about sourcing from China. However, there is less information on the practicality of sea and air freight from China to the US. On this page, we aim to change that by giving you some practical guidelines for using either mode of transportation.
Do you want to start your first export from China to the U.S. by air, or simplify your ocean freight business? Either way, there’s a lot here to help you be more successful in freight from the East to the 50 great states in the United States.


Shipping from China to America
FCL by sea
FCL, or Full Container Load, is when your cargo fills an entire 20-foot or 40-foot container. If you’re shipping in bulk, you can save time and money by shipping FCL. FCL pricing is flat whether your container is completely full or not.
LCL by sea
LCL or less than container load means your cargo will not fill the entire container and will be shipped with other boxes or pallets. Please note that when you ship LCL, your cargo needs to be consolidated at the port of origin and unpacked at the port of destination.
This is the reason why LCL shipping takes several days than FCL shipping.
Air Freight from China to America

If you don’t want to wait weeks for your shipment to cross the ocean from China to the US, air freight will cut the transit time down to just a few days, albeit at a much higher cost.
What is the best way to ship from China to the US?
While this is a good question, there is no universal “”best way”” to ship from China. You should carefully consider the following variables:
Product and load – what is being transported and how big is it?
Destination – to a small office or a warehouse?

Time requirements – do you need to be in the same week, or can you wait? This is a crucial consideration, especially during Chinese holidays.
Product and load: Some goods, such as aerosol cans and strong magnets, are difficult to transport by air. Other products, such as lithium-ion batteries, can be shipped by air, but the required documentation is often difficult for suppliers to provide and can only be shipped by dedicated aircraft. Because of this, it is often easier to ship batteries by sea in China.
Some products may be too heavy or too large to be shipped by air and can only be shipped by sea or rail.
In some cases, it is better to ship the product by air. Products smaller than 1 cubic meter are usually ideal for air shipment. High-value cargo is sometimes safer to transport by air and is sometimes required by Chinese freight insurance companies.
Destination: End-to-end shipping services provided by most of the well-known Chinese 3PLs are able to deliver goods to warehouses, small commercial buildings and residential areas. However, it is sometimes difficult to transport the container to a location where there is no equipment to unload the container. Because of this, the final destination and how the cargo will be unloaded should be considered to determine the most ideal shipping plan.

In some cases, buyers may find it easier to ship smaller-sized shipments by air from China, while others may benefit from unpacking services after the shipment arrives at a U.S. port.
Time Requirement: If the goods are urgently needed, there is no faster way than air freight.
For some seaborne containerized shipments, transit time can be reduced by shipping to the West Coast instead of the East Coast, and then completing it by truck or rail after the shipment arrives in the United States.
If time is not a priority, shipping by sea to a popular port close to the final destination and trucking at the last leg of the journey is likely to be the cheapest option.
Shipping time from China to US
Transit times for sea, air and express shipments from China to the US
How long does it take to ship from China to the US?
The transit time of your shipment is affected by location, shipment size, and season. Shipping times are not always the same. Shipping may be delayed depending on market conditions, natural behavior and other events.
Use the table below to estimate the time for each shipping method from China to the United States.
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Shipping from China to USA
Shipping charges can often be calculated based on the shipping method used by looking at the weight and/or volume of the item being shipped and the speed at which the item is being shipped.
If you can fill a container, the FCL service will save you the most on shipping as the unit cost will be lower than LCL. This is because LCL shipping is calculated using the dimensional weight formula. In contrast, FCL is a flat rate per container.
On the other hand, it is rarely cost-effective to rent and transport a container that is only partially full. If your shipment only takes up two or three pallets, the cost of FCL shipping can be prohibitive, and LCL shipping becomes a more attractive option.
Most shippers won’t choose air freight — especially for bulk shipments — unless speed is critical to their supply chain. That is, small quantities of goods can be transported by air at reasonable prices. The cost of air cargo weighing around 100kg is sometimes only a little more than the cost of sending the cargo as sea freight.
If you plan to export cargo weighing less than 35kg, you are unlikely to find a freight forwarder to handle it. It is not feasible to ship such small quantities using a freight agreement. Instead, you should contact an international courier company that will arrange for your shipment to be shipped by air at an affordable rate.
Sino-US customs clearance
Import and export clearance can seem complicated, and in many cases, that’s because of it. However, this is an unavoidable aspect of sea and air shipments from China to the United States. Therefore, this is something that every supplier, consignee and middleman who engages in international trade must be prepared for.
Your carrier will not be responsible for helping you with customs procedures. However, freight forwarders charge a fee to take care of them. Even so, your business must be responsible for certain steps. They include providing accurate information and documentation to accompany your shipment.
Generally, you need to ensure that all exports from China to the US are accompanied by the following documents, as they are required by the customs authorities of both countries:
1. Commercial Invoice
2. Packing list
3. Certificate of Origin
4. Letter of credit or other payment terms (depending on the contract between the parties involved)
5. Ocean bill of lading or air waybill (your freight forwarder should provide this)”

Ocean & Air Shipping From China to UK

“Ocean & Air Shipping From China to UK
While it is technically possible to import from China to the UK via overland rail services, most shippers prefer to transport their imported goods by sea or air. For this reason, this page is entirely focused on using sea and air freight services as a way to export from China to the UK.
Most commercial organisations importing from China to the UK choose sea freight as it is usually the most economical way to transport goods over long distances.
Assuming your goods can be shipped in containers, LCL and FCL are the two most logical options. Alternatively, air freight is faster than shipping a container from China to the UK. However, the benefits of speed do come at a rather high price.

Shipping from China to UK
FCL by sea
FCL, or Full Container Load, is when your cargo fills an entire 20-foot or 40-foot container. If you’re shipping in bulk, you can save time and money by shipping FCL. FCL pricing is flat whether your container is completely full or not.
LCL by sea
LCL or less than container load means your cargo will not fill the entire container and will be shipped with other boxes or pallets. Please note that when you ship LCL, your cargo needs to be consolidated at the port of origin and unpacked at the port of destination.

This is the reason why LCL shipping takes several days than FCL shipping.
Air Freight from China to the UK
Airfreighting your shipment from China to the UK can be expensive, depending on the size of the shipment, but there are many reasons why this is still the best option for you.
These might include time-sensitive shipments that need to be delivered in days instead of weeks, or you might want to send a certain amount of inventory before ocean shipping.
Maybe the delivery destination is closer to the airport than the port, or the item is of high value or

perishable.
Whatever your goals, it is essential to use a reputable forwarder to ensure smooth deliveries.
How much does it cost to ship from China to the UK?
Freight rates have been rising and falling. Therefore, the only way to accurately assess shipping costs when importing from China to the UK is to get a quote from a freight forwarder. Quotations from all forwarders will be based on calculations taking into account the following factors:
1. Market demand and availability of freight capacity
2. Fuel cost
3. The type of goods you wish to ship
4. The amount of shipping that constitutes your shipment
5. The shipping method you want to use
6. Door-to-door, port-to-port, port-to-door or door-to-port service of your choice

A range of other conditions are also considered in the freight forwarder’s pricing calculations, so it is not realistic to provide any true indication of shipping costs on this page. However, the following rough guide can at least help you understand the comparative costs of different shipping methods and freight volumes.
1. Although air freight is usually expensive, the cost of importing goods under 100kg from China to the UK by air may not be much higher than LCL sea freight.
2. For shipments weighing more than 100kg, sea freight will almost certainly be more economical than air freight.

3. FCL shipping is the most affordable way to ship bulk goods from China to the UK. Even if your cargo doesn’t fill the container, sometimes it can be cheaper than LCL shipping.
4. For shipments over 100kg but less than six pallets, LCL will be your lowest cost shipping option.
If your planned cargo weighs less than 35kg, it may not make sense to hire a freight forwarder. Most freight forwarders will not handle that small load. In any case, the courier company will ship your goods at a more affordable price.
How long does it take to ship from China to the UK?
The rule of thumb for lead time (under normal conditions) is: 1-2 weeks for regular mail, 3 days for air express, 8-10 days for air, and 30-40 days for sea.
These estimates can be affected by a number of circumstances, especially in current markets, so it’s worth checking with your logistics provider. As things stand, delays are expected.
Post regularly
Shipping from China by surface mail takes a long time. China Post offers faster and more cost-effective options for airmail and express mail (EMS), both of which can take one to two weeks.
If the paperwork appears to be problematic, the customs agency will not give priority to releasing the package. So increase your chances of posting regularly in as little as a week by checking that the vendor is getting the paperwork correctly before sending.
Express Options
When shipping from China via international express, it takes at least three days to pick up at the supplier’s door in China (unless the supplier has delivered the package to their warehouse). If it’s really urgent, there are more expensive premium services that can even be delivered overnight.
air transport
Standard air freight between China and the UK generally takes around 8-10 days. It’s not that planes are slower; it comes down to the fact that the air freight process is more complicated than express freight.
ocean freight
Door-to-door shipping from China to the UK takes at least 30-40 days, the longest delivery time is by sea. That’s because boats move much slower than planes.
In addition to the extra preparation, ocean liners slow down as much as possible to save fuel (and money).
On top of that, port congestion, customs delays and adverse weather conditions affect ocean freight more than air freight.
Sino-British customs clearance
Customs clearance often confuses companies that move goods across borders. In particular, SMEs sometimes struggle to navigate the complexities of this necessary and sometimes puzzling aspect of global logistics.

For this reason, it may be a good idea for your business to leave customs clearance and compliance to a freight forwarder. Some freight forwarders have in-house customs clearance agents working for them. Others work with customs brokers to handle customs formalities on behalf of clients. Either way, they can save you a lot of heartache and energy in exchange for a proper fee.

While having a freight forwarder on your side can ease the pain of customs clearance, your business still needs to perform some tasks to meet formal requirements. Some of the documentation required to clear your shipment will be the responsibility of your business. You will either need to fill it out and file or make sure you have them available for inspection by customs authorities.
The documents (or electronic documents in some cases) that Chinese and UK customs officials typically expect to see are as follows:
1. Commercial Invoice
2. Packing list
3. Certificate of Origin
4. Letter of credit or other payment terms (depending on the contract between the parties involved)
5. Ocean bill of lading or air waybill (your freight forwarder should provide this)
From time to time, you may find that Customs requires additional documentation, depending on the type of cargo you are shipping. For example, the UK or Chinese government may insist on some kind of certificate, permit or license. Therefore, it is always worth checking requirements with your freight forwarder, especially if you are shipping a specific product or material for the first time.
Tips to reduce shipping costs and shipping times between China and the UK
1. Book in advance. Shipping by sea is the cheapest, but also takes the longest. Booking in advance can save you money and reduce stress in the event of delays.
2. Off-peak delivery. When a carrier is busy, both shipping prices and shipping times increase. Ship in low season whenever possible.
3. Organize your documents. When it comes to fast customs clearance, having your documents organized can play an important role.
4. Know your HS code. Many shippers are surprised by the extent to which customs fees can affect the cost of doing business. Do your research so you can budget effectively.
5. Compare quotes from different suppliers. Quotes may vary, so please review quotes from different providers before making a decision.
6. Understand what is included in the offer. Is your offer port to port or door to door? What services does it include? Know what you’re paying so you don’t get hit with unexpected charges.”

9 strategies to reduce freight costs

“9 strategies to reduce freight costs
For businesses dealing with large inventories, shipping costs can have a significant impact on profitability and growth. Shipping costs can be mysterious to many businesses because there are many different freight products, categories and highly dynamic costs. While it pays to plan for cost peaks, the best strategy to reduce the financial burden of shipping inventory is to reduce daily shipping costs. Here are 9 strategies to unlock cheaper, more reliable shipping.
1. Rethink your packaging

Packing your shipments more efficiently is one of the easiest ways to keep costs down. Footprint is often a key factor businesses consider when setting shipping rates, so reducing dead space almost always results in lower shipping rates. In some cases, new packaging may increase the rate of breakage or deterioration; while it is often worthwhile to reduce inventory losses, some breakage may be an acceptable price for significantly lower shipping costs.
2. Irregular delivery
Shipping in bulk is often cheaper than shipping the same volume of product in multiple smaller shipments. Because carriers can load containers more efficiently, bulk customers can get cheaper freight rates—in less time because carriers don’t need to handle, load and unload as much customer cargo. On the other hand, regular shipping requires your customers to carry more inventory than they need immediately. This incurs inventory holding costs, so a slightly lower price or other favorable conditions may be required.
For some products, shipping components or ingredients in bulk to assemble and package close to the point of sale also allows you to ship the product more efficiently.
3. Contract stable lane volume
If your carrier knows he will be working with you every day and will get regular shipments in the same lane, he can market those return trips and build his network. As a result, you will pay less because the carrier is more efficient. In addition, these carriers will focus on moving cargo from people who are loyal and have reliable volumes due to the current tight capacity.
4. Ship on off-peak days
Shipping a day late or a day early can lead to significant savings. Friday is usually an off-peak day for shipping consumer goods, as most customers try to get their products to stores by Thursday, so it can be put on hold on Friday and ready to sell over the weekend. Monday also tends to be a low-volume day when carriers typically look for freight. Obviously, it depends on the cargo – for example, canned food has more windows than fresh food. Off-peak shipping is certainly a good option for shippers of non-consumer products.

5. Ship more products, less frequently. Persuade your customers to accept larger orders. It is much cheaper to ship six pallets at a time than to send two pallets every two days. But retailers tend to look for smaller items more frequently, so you need to provide them with incentives to get more inventory than they think they need. Potential savings: Up to 50% savings compared to the smallest LTL load, at which point minimum charges may kick in.
6. Build a fast-loading reputation
When carriers set their pricing, they usually assume a 2 hour loading window. But if the carrier knows they’re picking up where they’re loading within an hour, that can affect the price. It also makes the carrier work with that shipper. Shippers with consistent load time performance can even factor these favorable load times into rates. This avoids the need to pursue assessment fees – a huge waste of time. Efficiently operating shippers save money and have carriers lined up to serve them – a double benefit!
7. Use a load board.

If you have a one-off shipment and put it on a load board, you may experience low rates, especially if the carrier can handle it as a return trip. Carriers love return trips because they are making money, otherwise they would incur costs for empty miles. For return trips, many are willing to offer rates that cover only the cost of fuel, plus a little extra.
8. Find a carrier located near your delivery point
That way, your load is more likely to be their return trip, and you’ll get a lower rate. Filling up empty miles is how carriers make money, and it’s a great way for you to lower your shipping costs. It’s surprising how many shippers don’t investigate carrier terminals near their frequent receiving locations.
9. Use Data to Identify Freight Weaknesses
Modern inventory management systems collect vast amounts of data covering most aspects of a business’s inventory operations. This data can be used to identify poor shipping performance and identify potential causes. For example, shipping records can be used to identify carriers or shipping routes with higher than average rates of breakage or late deliveries.
Reduce shipping costs and challenge the status quo

Many of these solutions may seem self-evident, but shippers often ignore them and end up paying more for shipping than they should. why? The culprit is the blanket acceptance of “”business as usual”” rules and processes between internal departments and between shippers and customers.
See if any of the above suggestions make sense for your business. Then go a step further. Check your freight plan and question every built-in assumption – it has to get there in two days, railroads never work, marketing dictates carton size. Challenge the status quo and watch the savings and appreciation roll in.”

7 Tips on How to Choose a Forwarder

“7 Tips on How to Choose a Forwarder
In the international shipping industry, timing is of the essence. You need professionals to manage your supply line, which means you need a freight forwarding company. A freight forwarder handles your shipment from origin to final destination and everything in between. If you are new to the international freight business and looking for a reputable forwarder, here are 7 tips on how to choose the right forwarder to handle your shipments.

What are the responsibilities of an international freight forwarder?
The term “”international freight forwarder”” may seem foreign to some. But in this new era of global business prosperity, the international freight services industry has leapt to the forefront. In simple terms, an international freight forwarder is a business entity that helps individuals or companies arrange the import and export of goods.

International freight forwarders may not have large freight fleets themselves, but they are experts at handling the logistical arrangements that enable goods to move from one place to another – whether by land, air or sea. Typical international freight services they provide include but are not limited to the following:
Prepare all necessary shipping and export documents
Warehousing
Reserve a slot on the selected freight vehicle
Negotiate the fairest shipping fee
Track the movement of goods
Help arrange cargo insurance or file an insurance claim.
In this sense, a freight forwarder acts as an intermediary or intermediary between you and the person who is directly responsible for delivering your goods to individual customers, markets or final destinations. As a customer of a freight forwarder in Melbourne or elsewhere in Australia, you will pay for their expertise in efficiently transporting goods, their extensive network of professional contacts in the shipping industry, their ability to negotiate the best prices on your behalf, and their commitment to you Knowledge of international customs laws for the location to which you are shipping.
Here are tips on how to choose a freight forwarder.
1. Make sure the freight forwarder is experienced.

This could almost be the entire list. Experience, experience, experience.
Starting a freight forwarding company can be fairly easy, but international shipping is not the easiest business sector in the world, and if you don’t know what you’re doing, you won’t last long.
Years of experience means your freight forwarder has dealt with different situations such as dockworker strikes and port closures, the need to rearrange cargo, resolve customs or storage issues, and more.
Experience often means that your freight forwarder will help you avoid customs, warehousing and routing issues before they start, so your international shipments run smoothly.
2. Ensure risk management
Essentially, global shipping provides precarious conditions. You need a freight forwarder who can mitigate risk and have the knowledge to deal with problems as they arise. They should be proactive and provide solutions in a timely manner.

One risk mitigation strategy is cargo insurance. Be sure to ask what types of cargo insurance are offered, as making your company standard carrier liability can prove to be a costly mistake.
Seek open communication and transparency. In times of crisis, you need a partner.
3. Confirm a wide range of services
If your business requires multimodal transportation, or if you need to store goods in warehouses for extended periods of time, it is important to work with a freight forwarder who provides air, ocean, road transportation and logistics solutions. You should discuss all aspects of your supply chain with a potential forwarder to ensure they provide all the services you need. If they’re only local or their product range is narrow, they may not be flexible enough to handle when you need to go beyond the specs.
4. Commit to your schedule
Timeliness is critical in international shipping; businesses that maintain calendars suffer the least amount of loss and disruption. Work with an international freight forwarder who can meet your deadlines and offer tips to avoid these costly delays.
5. Make sure the freight forwarder has good customer service.

this is very important.
How quickly will the freight forwarder respond to your shipping request or answer your questions?
If you are new to international shipping, are they able and willing to walk you through what you need to know and do to make sure everything goes smoothly with your import and export?
Your salespeople at a freight forwarding company may not be able to provide all the answers to your questions as they may be new to the company or even the industry, but they should be able to find answers for you from the experienced team they work with.
The performance of your forwarder in meeting your individual needs says a lot about their ability to give your shipment the necessary attention.
Note that I didn’t even include shipping costs in this list, because what’s more important is that your forwarder is able to meet your shipping needs professionally and accurately.
A freight forwarder may offer much lower rates than other competitors, but you will often find yourself paying extra costs, delays and very poor customer service for choosing them.
6. Check licenses, certificates and permits
Freight forwarders need to have different licenses and documents to handle your shipments, as well as special licenses for transporting sensitive and dangerous products. Make sure your provider has the right license for you, and they’re publicly posted somewhere.
7. Be transparent and process-oriented
Your international freight forwarder must be diligent and honest with you throughout the process, especially when it comes to tasks such as submitting documents, coordinating shipments and tracking the flow of goods. One of the great things about AFI’s company culture is our commitment to have no ambiguity or gray areas; we measure every situation, analyzing the best possible course of action; and reassure every client of the importance of their business goals. We intend to achieve these goals together!
Following these steps will help guide you in finding the right freight forwarder for you.”

What to Consider When Choosing a Customs Broker – A Simple Guide

“What to Consider When Choosing a Customs Broker – A Simple Guide
What is a customs broker
Customs Brokers provide individuals and organizations with shipping and delivery services across geographic borders.
The public is often unaware of the sheer scale of goods and raw materials that cross these international borders on a daily basis, and what is involved in clearing these goods through customs in different countries.
When looking for a licensed customs broker, there are some questions that must be answered. Here are a few.

fundamental issue
How long has the broker or agency been in business?
Can they clearly outline the risks involved in importing and exporting goods? Learn how they can help mitigate and overcome these risks
What kind of support can they provide for your type of business?
Find out what information they need from you to assess your business needs.
How good is their customer service? There should be a single point of contact between you and your brokerage. You should be able to reach real people at the agency at any time of the day.
legal aspects

Is the broker or agency fully licensed? All customs brokers must have a license to operate as a single person.
Can an agency or broker clarify the legal aspects of customs clearance? You need to properly understand all the laws your shipments must comply with.
Do they keep you informed of changes in laws or regulations affecting the import and export of goods, especially those related to your business area?
Can they state the tax you need to pay?

Are they members of the Customs Association? Brokers are often required to join specific associations or entities in order to provide services in specific ports.
Other basic questions
Ask them to provide some references about their previous clients. Contact these customers directly to find out how good the customs brokerage service is.
Check to see if the agency specializes in any particular business area. Do they specialize in the same areas as your business?

Do they provide you with regular updates on the customs clearance process? You need to know where you stand in order to plan accordingly.
Will the agency work with you to develop an action plan for customs clearance? This is especially important if you plan to import and/or export goods on a regular basis.
Why work with a customs broker?
Let’s go back to the misconception that the choice is made based on the location and/or number of offices of the customs broker. We need to dispel the myth that they need to have an office at every airport, marine terminal or border point where your cargo will enter Canada or the US. A few years ago, this was an important factor because customs clearance required a physical presence everywhere.
Today, nearly all commercial customs clearance in the United States and Canada is done electronically. This means customs brokers
Obtain trade data (usually in the form of customs or commercial invoices and other supporting documents),
transfer the information to the appropriate customs agency (and other government agencies, depending on the type of shipment), and
Request cargo clearance
Once the goods are released, they also “”confirm”” entry electronically by sending a final declaration to customs or customs entry.
Although the point of entry into the country must be properly declared to customs, the act of transferring data can take place from any location. Now, when you’re looking for a reliable customs broker, you can broaden your horizons and explore the best options.”

Cargo Insurance – A Simple Guide

“Cargo Insurance – A Simple Guide
What is cargo insurance?
Marine cargo insurance is the most common method used to protect the value of your cargo from physical damage, theft or general average. Cargo insurance is not always automatically included with all shipments – this usually varies by region. Instead, shippers or consignees can purchase policies for the insurance marketplace from niche suppliers, large brokers, local agents, websites, and freight forwarders.

I often compare cargo insurance to auto insurance. You need to pay insurance premiums for your car due to accidents and theft. You simply can’t always plan for or avoid these types of things. You’re still willing to put a lid on your car, even after years without problems. After all, getting only the most basic coverage could cost you a lot of money in the event of an accident.
This is exactly the same principle as cargo insurance. By choosing to pay a fraction of the value of your item, you can protect yourself the day the unexpected happens.
Is Cargo Insurance a Necessity?
No need to purchase cargo insurance. However, this is highly recommended so you can better protect your cargo from risks – some which can be catastrophic. It is important to weigh the cost of insurance against the potential loss and collateral damage that can occur without insurance.
Remember, even if you prove that the ocean carrier is legally responsible, their limit of liability is $500.00 per package or customary shipping unit, or the actual value of the shipment, whichever is lower. Air carriers only pay 19 SDR (~$24.00) per kilo. As you can imagine, most shipping costs are worth much more than these rates. So without proper insurance, you could lose most of your cargo value
Depending on your requirements, there are different types of cargo insurance and policy types available to cover your cargo.

Here are some points to consider before you purchase cargo insurance.
1) Understand the goods
It is essential to understand the nature of the insured goods, including how the goods are packaged. Ask “”What’s going to go wrong with this shipment?””
Packaging is critical as it is what protects the cargo during the voyage. Is the packaging the normal packaging for this cargo for the intended voyage? Is the packaging sufficient to avoid damage to the goods?

Make sure the package is marked so that it can be identified. This is important for shipments sent by air or LCL/LCL shipments. If the item is a branded item, please do not put the brand name on the package as this will only be an incentive for theft.
2) Know the voyage
This involves more than just knowing which port the cargo will be shipped from to which port. What climatic conditions are expected to have an impact on the condition of the cargo? Are there any political circumstances that could affect the safe delivery and/or payment of goods? Does sailing require sailing near any pirate hotspots?
3) Terms of Goods

As far as the actual insurance of the cargo is concerned, there are three different levels of insurance available for general cargo. These terms are published by the Lloyd’s Market Association (LMA) and the London International Underwriting Association (IUA).
There are also specific terms for various industries, such as frozen meat, frozen produce, wood, coal, oil, and more. Airfreight has its own terms, Institute Cargo Clauses Air (excluding postage).
Types of Cargo Insurance
When discussing the most common types of insurance, we will focus on ocean cargo insurance, which usually covers air freight as well. Note, however, that specialized air freight insurance can also be purchased.

Marine cargo insurance offers different levels of coverage. You will need to decide which type of insurance is best for your business, your cargo, and the severity of the risks involved in shipping. Again, if you know a little bit about each option, it will be an easier decision to make.
The first decision will be whether to buy single or open coverage.
Single coverage:
This type of insurance is purchased on a per shipment basis. It only covers single shipments and is usually the best option for businesses that do not frequently ship internationally. However, if your company ships frequently, it may not be cost-effective to make insurance arrangements for each shipment.
Open coverage:

This is a cargo insurance product that covers cargo for a specific period (usually one year). You can cover all your cargo movements under the same policy, which is a more efficient way to manage your risk if you ship frequently.
After deciding whether you will buy an insurance policy for single or open coverage, you will need to consider the level of coverage you need. A full policy guide would require a longer article than this one, so we’ll focus on the most common types of cargo insurance.
All risk:
As the name suggests, all-risk coverage applies to both air and ocean cargo insurance, providing financial protection in the event of most events that result in damage or loss of cargo. You should be able to purchase all-risk coverage for most types of goods, as long as they are new and not inherently susceptible to breakage, deterioration or loss.
However, even all-risk coverage usually has some exceptions, such as:
• Importer/Exporter Negligence
• Customs refusal or delay
• Loss or damage caused by war, strike, disturbance or civil commotion (WSRCC)
• Damage or loss due to force majeure (eg earthquake)
• Customer fails to pay, or seller fails to collect
Name the Dangerous Cover:
In contrast to full coverage, named risk coverage is limited to the risks expressly specified in the policy. Therefore, this type of insurance is less comprehensive. Its main benefit is that you can arrange coverage for risks not covered by an all-risk policy.
Dangers of naming include:
• Cargo theft
• natural disasters
• bad weather
• Collision at sea or sinking of ship
• Undelivered goods
General average and its meaning:
If you usually ship by sea, the general average principle in sea freight is an issue to keep in mind. As counterintuitive as it may seem, you should consider this as part of your cargo insurance strategy.
This principle states that if part of the cargo is lost, abandoned, destroyed or damaged due to a problem at sea, the owners of all the cargo on board must share the cost of compensation for the loss. Therefore, even if your cargo survives an accident, you are responsible for making compensation for the person whose cargo was lost.
Cargo Insurance: Is It Worth It?
Unless you are contractually obligated to insure, you are free to accept shipping risks and the minimum insurance provided by the carrier, or protect your interests with cargo insurance.
We recommend that you purchase the insurance that suits your situation. After all, cargo theft is not uncommon on a global scale, and incidents at sea or in flight, while rare, do happen – and when they do, they can cause huge financial losses.
Even if your business is not a risk owner in an international sales transaction, keep in mind that the responsible party may not have insurance, or the goods may be under-insured. So, as a contingency, it makes good business sense to purchase additional insurance on your own.
TJ chinafreight is an online freight forwarding platform that helps SMEs to ship their goods worldwide. We are happy to advise on the appropriate type and insurance level for your shipment. To answer your questions, please contact us by phone, email or via our live customer service chat feature.”

What is Warehousing, Logistics Guide

“What is Warehousing, Logistics Guide
What is warehousing?
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are used by all different types of businesses that need to temporarily store products in bulk before shipping them to other locations or individually to end consumers.
Elements of Warehousing
While warehousing may seem simple as it primarily involves leaving product in storage, there are many processes involved to ensure efficient completion and quick access to and from inventory, including:
capacity planning

Space is a key resource. Therefore, when products are expected to be shipped, employees need to plan where the products will be stored to make the most efficient use of the space.
Receive inbound goods
When products arrive at the warehouse, workers need to receive the items and carefully move them to the staging area for processing.
track inventory
As items move in and out of the warehouse, registration in the warehouse inventory management system is required to ensure administrators can track what is currently in inventory and plan for future changes.
store product

Once the product has been received and processed, it needs to be stored. This may involve placing products in boxes and pallets and then using mobile devices to transport them to the appropriate storage space.
climate control
Depending on the nature of the product, factors such as temperature, humidity or pressure may need to be kept constant. For example, frozen goods need to be stored in areas with temperatures below freezing. These requirements will affect how and where products are stored within the facility to ensure proper quality.
reorganization

As new products are introduced, existing inventory may need to be moved to ensure the most efficient use of the entire space. Any changes need to be tracked and updated in the inventory management system.
Pickup and Shipment
Finally, when products need to be shipped out, employees need to pick, handle, pack, load, and then release them from inventory to make room for new inbound products.
Best Warehousing Options to Consider
Fulfillment companies have many responsibilities, from design to picking and packing to final shipping. Ideally, you’d want to handle all of these tasks under one roof, but that’s rarely the case. You may need to survey the playing field and place your work in multiple locations.
Here are the best places to perform the order fulfillment process:
private warehouse

This particular distribution center is usually owned and managed by the channel supplier. This will be your manufacturer, trader or whoever is the first to resell on exclusive distribution channels. Some notable examples of private repositories include:
Warehouses owned and managed by wholesalers and retailers
Warehouses rented out by retailers
Warehouse located near farmers farmland
Warehouse built by the manufacturer’s production unit
Warehouses owned or leased by wholesalers
public warehouse
Public warehouses are government-owned distribution facilities. These warehouses are usually leased to small traders who do not have the financial means to own a warehouse. If you’re working on a short-term delivery project, one of these government warehouses may be your best option. Most public storage space is used by manufacturers, producers, exporters and importers associated with the franchise.
Bonded Storage Center
It’s the perfect mix of private and public warehouse space. Bonded storage centers are owned, managed and controlled by private and government agencies. These storage facilities are best for importing goods when import duties have to be paid. When you need to handle global shipments, you will most likely do business through a bonded warehouse. These warehouses are usually located near the port and are usually owned by the terminal authority.
Cooperative warehouse
This is your most economical type of storage system. Cooperative warehouses are managed by cooperatives organized voluntarily. Co-op organizations don’t make a profit, so they don’t charge high distribution rents.
distribution facility
These facilities are nearly twice the size of traditional warehouses and large enough to accommodate multiple supply chain operations simultaneously. These centers provide computer control to make the movement of goods fast, reliable and easy. Goods are delivered to the processing facility on the morning of the operation and then quickly transferred to a nearby distribution center. This is the best place to do business when there are large, urgent quantities of perishables that need to be shipped.
Warehouse and Distribution Center
While a warehouse is technically any building used to store physical products, regardless of its purpose, a distribution center is more specifically a warehouse designed to fulfill orders for distribution to other businesses or consumers. Therefore, the design of distribution centers requires not only compact storage, but also efficient picking, packing, and shipping.
Warehousing FAQs:
Why does warehousing exist in the supply chain?
Warehousing is a necessary step in the supply chain to ensure that inventory is ready when an order is received and is ready for packaging and shipping. Some manufacturers offer drop shipping services, but shipping from a single manufacturing facility increases shipping time and increases last-mile shipping costs.
What are the four functions of warehousing?
Warehouses are used to receive and store inventory; pick, pack, and ship orders; send tracking information; and maintain accurate inventory counts.
What is the main function of the warehouse?
The main function of a warehouse is to store inventory based on product demand (cold storage, humidity control, bulky, bulky, etc.) and maintain accurate inventory counts to reduce the chance of shrinking or obsolete inventory.”

Rail Transport vs Road Transport

“Rail Transport vs Road Transport
Shipping method
One of the oldest and most popular forms of transportation has always been ground transportation. Since ancient times, all trade, as well as the world economy, has relied on freight systems that move goods from one place to another, supporting a culture of commerce as the core conduit of human society, something the modern world has become accustomed to.


Road transport
By far the most common mode of transport for goods transport is road transport. Road transport facilitates the continuous delivery of daily necessities such as daily necessities, flowers, fruit and dry goods to markets and destinations in various countries and continents.
As the saying goes, “”If you get it, the trucker will bring it!”” The distribution and distribution of retail and other forms of goods between DCs (distribution centers) relies heavily on road freight systems.
Rail transport
Rail transport is also known as train transport. It is a means of transportation, on a vehicle running on a track (rail or railroad). It is one of the most important, common and cost-effective ways of commuting and transporting goods over long and short distances. Because the system runs on metal (usually steel) rails and wheels, it has the inherent advantage of less frictional resistance, helping to attach more loads to a wagon or wagon. This system is called a train. Typically, trains are powered by engine locomotives that run on electricity or diesel. If there are multiple routing networks, complex signaling systems are used. Rail transport is also one of the fastest land transport methods.
Advantages of road transport
The only shipping method that can deliver to your door
Extensive road network enables fixed delivery days, next day delivery
Not bound by timetables and routes. Ready to operate, easily adaptable to specific route or cargo requirements


The rapid movement of goods, especially perishable goods, over short distances
Cheaper than air and sea. Extremely low packaging requirements for greater cost savings
Not capital intensive. Roads are relatively inexpensive to construct, operate and maintain. Trucks and trailers are cheaper than ships, planes and trains
Serving the most remote regions of the world and facilitating trade in landlocked countries
An important part of air, sea and rail freight transport
shortcoming
High accident risk makes road transport less safe than air, sea, rail and other modes of transport
Not suitable for long distances and bulky cargo
Unreliable when roads are flooded, damaged during the rainy season
Traffic delays, breakdowns affect delivery times
High tolls and road taxes in some countries
Poor road maintenance is a big problem
Road transport costs are highly sensitive to fuel price fluctuations

Advantages of rail transport
Cheaper than road transport. In India, the cost of transporting goods by rail is Rs 1.41 per ton-kilometer while the cost of transporting goods by road is Rs 2.58 per ton-kilometer
Trains are more energy efficient than trucks and have a smaller carbon footprint. According to Indian Railways, rail transport emits 28 grams of carbon dioxide equivalent per ton-kilometre, while road transport emits 64 grams of carbon dioxide equivalent (CO2 equivalent is a measure of relative global warming potential)
Trains cover great distances in a short time
Due to the large volume and less packaging requirements, the cargo is easy to load and unload
Reduce the risk of cargo damage during transport
Better safety record. Road accidents in freight transport cost eight times as much as train accidents
Weather conditions have little effect on rail transport
shortcoming
Not a universal cargo transport solution like a truck. Rail transport is mainly used for large quantities of goods over long distances
Longer transit times preclude time-sensitive shipments
India’s rail network, though vast, is oversaturated
In most countries, the rail network is not as wide as the road network. In India, many container ports are not connected to rail lines
Trains are not as reliable as trucks, especially in India
Rail transport lacks the flexibility of road transport
Despite these advantages and disadvantages, the two modes of transportation can be combined to provide customers with a multimodal (or intermodal) mode of transportation, which together provide a road/rail combination that provides customers with a seamless Door-to-door shipping options.”

9 Factors That Affect Shipping Rates

“9 Factors That Affect Shipping Rates
If your business involves inventory – whether you’re a wholesaler, manufacturer or retailer – shipping is one of the key costs of doing business. Shipping costs are often highly uncertain; merchants may not know how much the shipment will cost until the carrier issues an invoice a few weeks later. Although shipping rates are often indeterminate, they are not a complete mystery. Like most expenditures, they depend on a range of economic circumstances. Let’s see how to define shipping costs
Shipping is the price of certain goods being shipped from one location to another. The price depends on the form of the goods, the mode of transport (truck, ship, train, plane), the weight of the goods and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight to calculate prices, which takes into account both the weight and volume of the cargo.

1. Fuel cost
All types of courier services rely on fuel to get your package from point A to point B. That’s why increases and volatility in fuel prices can be the number one factor affecting freight rates.
Once fuel prices drop, the cost of operating planes, container ships and trucks will drop. This will ultimately minimize shipping costs. Conversely, increased fuel costs mean higher transportation costs.
2. The weight and density of the cargo
Weight and density affect freight class, which in turn affects freight costs. The larger and denser the package, the more space is required for shipping. Whether it’s land, air or sea, the more space and labor required to transport your goods, the more you pay. To keep costs down, make sure to use high-quality, lightweight packaging and work with the shipper of your choice. Shippers who provide superior customer service and efficiency to their shipping partners typically receive higher rates and recurring business opportunities from the carrier.
3. Distance
The origin and destination of the goods can also affect shipping costs.
If you ship by sea, please note that different disembarkation ports charge different rates. When sending goods internationally by air, you should be informed that exchange rates between different countries may result in different shipping costs.

It’s also important to know that the further a package travels to its intended delivery point, the more expensive it will be to ship. For example, it is much cheaper to ship goods across the country than to ship them abroad.
4. Freight demand
Pricing depends on the number of products the carrier ships, just as it depends on the actual underlying cost. If capacity is limited, operators may be inclined to sell the limited space at a premium. On the other hand, if business is slow, carriers may be persuaded to offer more competitive prices, at least in the short term.
5. Customer Loyalty
Merchants who can provide regular, consistent business to their carriers can easily get good prices, especially when demand is low across the industry.
6. Season
Seasonal trends have a huge impact on freight costs. Higher requirements bring higher costs. When shipping becomes a priority, rates naturally increase. To avoid overrunning your shipping budget, supply chain companies must forecast data from previous years as accurately as possible. Building a relationship with your freight provider or using a trusted 3PL to manage shipping rates will help maintain your budget when the market fluctuates.
7. Customs and duties
When you service and ship packages to international customers on a regular basis, you face many strict customs regulations. This requires you to pay additional fees that vary by country.
Consumers often incur these additional shipping costs, which may come as a surprise to them. However, as a business owner, it is important to include this type of information in your shipping policy. You should correctly explain that these hidden costs are beyond your control and you will not earn commissions from them.

8. Geopolitical events
In addition to tariffs and duties, international shipping costs can also be affected by a range of geopolitical events.
For example, businesses that primarily use ocean shipping have been suffering huge losses from global piracy. With growing concerns about pirates and rogue governments, couriers are forced to travel longer routes and pay expensive insurance premiums. This ultimately leads to high shipping costs.
9. Your reputation as a businessman
The carrier’s quotation will reflect, at least in part, the carrier’s expectations for pallet packing and loading times. If you are known for fast loading, you may be charged slightly less to compensate.”

9 things you need to consider when choosing a freight forwarder

“9 things you need to consider when choosing a freight forwarder
Do you know how to choose the best freight forwarding company? Freight forwarding companies are responsible for transporting goods from one country to another. They provide warehousing, logistical support and transportation for domestic and international freight.
You know that shipping is important to every business, but you may not be familiar with how to choose a freight forwarder or company. Now you can understand the factors that influence your choice. Here are some things to consider: do they have regular shipments, what kind of services the company offers and how far their office is from your location, can they handle all types of shipments, are there any hidden fees or other fees use them etc. Every business has different needs, so make sure you find the right freight forwarder for you!
Choosing a freight forwarding company is not easy. There are many things to consider before making a decision. This article will help you identify the best freight forwarder for your business needs. Check them out below

1. Certifications and Certificates
First, you should check that the company you are considering hiring is properly certified. Needless to say, working with an uncertified company is not a good idea. Checking a potential candidate’s credentials will help you see if a particular freight forwarder has the appropriate skills and qualifications for your shipping needs. Also, this way you can see if they have the necessary training and compliance with safety requirements. Therefore, you will entrust your product to the best and most qualified company.
2. Important Services
Before narrowing your search for a freight forwarder, first determine what services your business needs. If your forwarder lacks certain competencies, even those you use occasionally, you may need to hire another specialist, which introduces additional complexity, reduced efficiency and additional costs.
Depending on what you’re shipping, your supplier should at least be able to:
Rail
Prepare import and export documents
Packaging and storing products
Manage inventory
reserved space
clear custom
Negotiated shipping
Provide quality insurance

Start a conversation with your freight forwarder about other services you may need. While you may not need to provide these specialized services for every shipment, it is best to have a partner who can provide flexibility. The more complex your supply chain, the more you need a partner with whom you can align.
3. Fame
Reputation is another rather important factor that you should keep in mind. Hiring an experienced but notorious freight forwarder will do you no good. If their previous clients complained about their service, chances are you’ll find yourself in a similar situation shortly after hiring a company like this. On the other hand, if people are generally satisfied with the services provided by a particular freight forwarder, you may be satisfied with those services as well.
Don’t worry if you don’t know how to check their reputation. It’s not hard to do this. All you have to do is talk directly to some of their previous clients, or read some online reviews and reviews that these people may have written. Either of these steps will help you determine their reputation, and if possible, it’s best to take both steps at the same time. However, if that’s not an option, you should be able to get what you need by just taking the second step and reading online reviews.
4. Product Track Record
Some freight forwarders specialize in transporting one type of cargo, while others are capable of transporting multiple types of cargo. Ask your potential forwarder up front if they specialize in certain commodities and shipping methods. If you have very specialized shipping needs, working with a company that has a consistent track record of shipping goods similar to your own can build confidence. Certain products, such as flammable liquids, toxics, drugs, alcohol, batteries and perishables, often require a professional freight forwarder.

If you ship a variety of goods that are not subject to strict regulations, it may be easier and more cost-effective to hire a freight forwarder with broader freight experience. Either way, a good freight forwarder will find and recommend the best shipping company for your needs, whether your cargo is restricted or not.
5. Delivery time
No matter what you’re selling, you probably want the company you hire to deliver those items to your customers fairly quickly. Since we’re talking about international shipping here, you need to be patient and reasonable with actual delivery times, and so will your customers. Still, that doesn’t mean you should keep people waiting long, which is why you should talk about those delivery time frames up front.
Timely pickup and delivery is extremely important for every business that ships its products. So, don’t forget to discuss delivery times with potential freight forwarders and make sure they deliver on time and deliver your shipments on time. Most importantly, it’s pretty important to talk about this before doing any hiring, which is why you should never skip this step.
6. Timely communication
Your freight forwarder should let you know exactly when your shipment will arrive so you can plan accordingly. Although international shipping will never be as predictable as domestic overnight delivery, a good freight forwarder will choose a reliable partner to ensure that the logistics are on schedule.
Remember that freight forwarders are not responsible for unforeseen delays such as severe weather, route changes, mechanical failures, dockworker strikes and foreign port closures. Disruptions are never welcome, but the best freight forwarders alert you quickly and do their best to fix the problem.
7. Volume capacity
Of course, if you want to feel all the benefits of using a freight forwarding service, you have to consider another rather important factor, such as what you can read here. What I’m saying is that you need to find a company that can handle a specific volume of goods and shipments. Now, this amount depends on the actual size of your business and the number of international freight assignments you actually have. However, the point is that you need to check this ahead of time, lest you find out later that you can’t meet your client’s requirements.
8. Industry expertise and experience
Experience is the number one factor in building trust between freight forwarders and customers. Starting a freight forwarding company is easy at first, but working in the shipping business and on an international level is not everyone’s cup of tea. For this, one must have a solid understanding of everything that is involved in the field, and the knowledge can only be acquired by working in the industry for a long period of time.
9. Customer Service
A freight forwarder with excellent customer service will provide you with the support you need to expand internationally. This is especially important if this is your first foray into overseas markets.
in conclusion
If you are looking for a freight forwarder to transport your cargo from point A to point B, it is important to do some research and consider all factors before making a decision. Once you understand what kind of services they can offer, how often they make shipments, or if they can handle any type of merchandise, as we know not everyone has a specific item they need to ship; then it’s time to take a look at their location. Is their office nearby? How far are other offices around the world? You should also ask each company these three questions when contacting.”