/ By tjchinafreight ivy / Shipping

Container Rental Guide

Why rent a container?

Are you looking for a specific period container? Do you have items or items that you want to store in containers to protect them from damage? Do you want the flexibility to rent containers at different points in time? If the answer is yes, then renting a container is ideal for you. Container leasing gives you flexibility in how you use your containers and how you plan your budget. Buying one, on the other hand, increases your liability and costs.

Here are the different types of container rentals that we will be covering in this blog:

1.Master lease
They are also commonly referred to as short to medium term leases. They fall into the full-service rental category with no cap on the minimum or maximum number of containers. The lease term is variable and the lessor is responsible for the maintenance, repair and relocation of the container. The agreement also involves an accounting system that includes debits and credits between the parties based on the condition of the containers at the time of their return. The lessor must undertake the allocation of the containers to meet the needs of the lessee. Therefore, it is important to ensure a stable supply of empty containers at the pick-up point. The master lease agreement sets out the main conditions such as the rental cost per day, the types of containers that can be disposed of, the number of containers to be used in each warehouse, the collection and delivery centers, payment terms, etc. The lessee has no obligation to use the container before picking up the container from the yard, and the contract takes effect when the lessee picks up the container from the yard. A separate individual contract is signed for each container collected under the Master Lease Agreement.

2.Long-term lease
Far less flexible than a master lease, long-term leases are a favorite of many rental companies. The duration of the contract is fixed. As well as a certain number of containers and delivery schedule. This leaves the leasing company with nothing to do once the container is signed for.

The lessee bears the cost of repairs, maintenance and relocation. Although definitions of terms vary, most leasing companies define long-term leases as 5 to 8 years. For long-term leases, the containers are usually brand new. This is why many long-term rental agreements come with negotiable terms. The clause allows rental rates to be negotiated after a few years based on depreciation and market fluctuations.

3.One way rental
They are also known as one-way rental agreements, and containers can be picked up at one location and dropped off at another. Both parties benefit from such one-way leasing arrangements due to operational rationalization and cost reduction. It is suitable for different regional requirements of customers and has the added benefit of saving on relocation costs.

4.Short-term rental
Also known as spot market leases, they are subject to market conditions dictated by supply and demand dynamics. Such leasing arrangements typically occur during temporary demand surges, which may be cyclical or sudden. Because of this market volatility, leasing companies prefer not to keep large inventories of such containers to meet short-term rental demand, to avoid the possibility of them being underutilized for an extended period of time. But careful planning and forecasting can handle unforeseen surges in demand. Maintenance, repair and relocation tasks are undertaken by the lessee. Aside from the higher cost, the one setback here is that you have to adhere to the minimum time to use the container. Usually leasing companies do not want to rent out containers for less than 6 months.

Transaction speed is another important issue for businesses to consider. Rental companies are also on the platform. Given the unbalanced nature of the world economy and trade, the number of containers is unbalanced.

/ By tjchinafreight ivy / Shipping

China-Thailand Customs Sign AEO Mutual Recognition Action Plan

On March 25, the "Action Plan of the General Administration of Customs of the People's Republic of China and the Thai Customs Administration on the Mutual Recognition Arrangement of "Accredited Operators" was signed online. The first AEO Mutual Recognition Arrangement Action Plan signed by member countries' customs.

Sun Yuning, deputy director of the General Administration of Customs of China, and Jizhana Xinushan, deputy director of the Thai Customs Department, signed on behalf of both parties. Sun Yuning said that the signing of the AEO Mutual Recognition Action Plan between the customs of China and Thailand is another pragmatic achievement of the customs cooperation between the two countries, marking the beginning of a new chapter in the AEO cooperation between the two sides.

China and Thailand have had close economic and trade cooperation for a long time. China has been Thailand's largest trading partner for many years, and Thailand's largest export market for agricultural products; Thailand is China's third largest trading partner among ASEAN countries. In 2021, the total bilateral trade volume between China and Thailand exceeded the US$100 billion mark for the first time, reaching US$131.18 billion, a year-on-year increase of 33%. During the same period, there were 83,000 Chinese enterprises engaged in bilateral trade between China and Thailand, of which there were more than 2,300 high-level certified Chinese enterprises engaged in import and export business with Thailand, with an import and export volume of about 143 billion yuan, accounting for about 143 billion yuan in imports and exports from China to Thailand. The total is nearly two percent.

According to the "Action Plan", China-Thailand Customs will speed up the negotiation on various issues of the AE0 mutual recognition arrangement, strive to realize China-Thailand AE0 mutual recognition as soon as possible, and effectively make the China-Thailand AEO mutual recognition cooperation a model of customs cooperation among RCEP member states.

China and Thailand have had close economic and trade cooperation for a long time. China has been Thailand's largest trading partner for many years, and Thailand's largest export market for agricultural products; Thailand is China's third largest trading partner among ASEAN countries. In 2021, the total bilateral trade volume between China and Thailand exceeded the US$100 billion mark for the first time, reaching US$131.18 billion, a year-on-year increase of 33%. During the same period, there were 83,000 Chinese enterprises engaged in bilateral trade between China and Thailand, of which there were more than 2,300 high-level certified Chinese enterprises engaged in import and export business with Thailand, with an import and export volume of about 143 billion yuan, accounting for about 143 billion yuan in imports and exports from China to Thailand. The total is nearly two percent.

According to the "Action Plan", China-Thailand Customs will speed up the negotiation on various issues of the AE0 mutual recognition arrangement, strive to realize China-Thailand AE0 mutual recognition as soon as possible, and effectively make the China-Thailand AEO mutual recognition cooperation a model of customs cooperation among RCEP member states.

AEO is the abbreviation of Authorized Economic Operator, that is, "authenticated operator". It is advocated by the World Customs Organization. The customs will certify enterprises with high credit status, law-abiding and level, and provide preferential customs clearance facilities to certified enterprises. of a system.

Since the implementation of the AEO system in 2008, China Customs has been vigorously promoting the international mutual recognition of AEO, focusing on improving the level of domestic and overseas customs clearance facilitation of Chinese enterprises, reducing the customs clearance cost of enterprises, and enhancing the competitiveness of enterprises in the international market. Up to now, China Customs has signed AEO mutual recognition agreements with 22 economies such as the European Union and Singapore, covering 48 countries (regions), and the number of countries (regions) in mutual recognition ranks first in the world. Among them, there are 32 countries jointly building the "Belt and Road", 5 RCEP member countries and 13 Central and Eastern European countries.

/ By tjchinafreight ivy / Shipping

Shanghai’s export business has the latest adjustment!

The Shanghai Epidemic Prevention and Control Office issued a notice deciding to carry out a new round of dicing and grid nucleic acid screening across the city. Starting from 5:00 on March 28, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary.

•The first batch, Pudong, Punan and adjacent areas (including the whole area of ​​Pudong New Area, the whole area of ​​Fengxian District, the whole area of ​​Jinshan District, the whole area of ​​Chongming District, Pujin Street, Pujiang Town of Minhang District, Xinbang Town and Shihu Lake of Songjiang District Dang Town, Maogang Town, Yexie Town) first implemented the lockdown and carried out nucleic acid screening, and the lockdown was lifted at 5:00 on April 1.

• For the second batch, starting from 3:00 on April 1st, according to the principle of stubble promotion, the Puxi area will be closed and controlled, and nucleic acid screening will be carried out, and the closure will be lifted at 3:00 on April 5th.
At present, some logistics companies in the first batch of closed and controlled areas have issued a notice to suspend the service of entering warehouses and receiving goods, and will resume at 5:00 on April 1, 2022.

Shanghai Port operates normally and maintains 24-hour operation
In terms of ports, SIPG issued a notice to customers, stating that at present, all production units in Hong Kong will maintain 24-hour operations except for the impact of extreme bad weather.

Shipping company operation adjustment notice

aerial view port at shanghai

From 5:00 on the 28th, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary. All enterprises in the closed area have implemented closed production or work from home. The first batch of logistics enterprises in the closed area have issued a notice to suspend the receipt and delivery of goods into the warehouse. Shipping companies: Maersk, COSCO, Hapag-Lloyd, Evergreen and Mason have issued business adjustment notices one after another.

1. Maersk

Maersk emphasizes:

Some warehouses in Shanghai have been closed since March 28 until further notice. A list of open warehouses is attached to this announcement. As the Pudong and Puxi areas of Shanghai are in full lockdown until April 5, trucking services in and out of Shanghai will be severely affected by 30%. All warehouses in Shanghai will remain closed from March 28 to April 1.
The air freight business of goods from existing warehouses in Shanghai remains normal. However, new cargo acceptance will be affected due to first mile deliveries and human resource constraints. The Shanghai counter will be closed from March 28 until further notice.

2. COSCO Shipping Lines

According to the needs of the new crown pneumonia epidemic prevention and control in Shanghai and surrounding areas, COSCO SHIPPING Lines Shanghai and surrounding service organizations (including: Shanghai area, Wuxi operation area, Jiangsu and Anhui operation area, Suzhou operation area, northern Jiangsu operation area and northern Zhejiang operation area) All of them have adopted remote office methods, and will continue to provide customers with stable and reliable services during the epidemic control period.

Other shipping companies have also released relevant adjustments. If you want to know more, you can check the adjustment notice on the corresponding shipping company platform.

/ By tjchinafreight ivy / Shipping

Biden administration re-exempts 352 tariffs on Chinese goods

The U.S. government announced it would restore tariff exemptions for 352 Chinese products that were first hit with punitive tariffs in 2018 when then-President Donald Trump launched a trade war with Beijing.

"Today's decision was made after careful consideration of public comments and consultation with other U.S. agencies," the U.S. Trade Representative (USTR) said in a statement Wednesday.
In a statement, the Office of the US Trade Representative said the exceptions were retroactive to October 12 last year and extended through the end of 2022.

The exemption expires at the end of 2020, but President Joe Biden's administration began seeking comments last October on which of the 549 eligible Chinese products should again be excluded from the tariffs.

The list released by the USTR includes industrial parts such as pumps and electric motors, certain auto parts and chemicals, backpacks, bicycles, vacuum cleaners and other consumer products. Those goods account for about two-thirds of the tariff-exempt goods that expire at the end of 2020. Goods exempted from duties include certain types of consumer goods such as electronic components, bicycle parts, motors, machinery, chemicals, seafood and backpacks.

A spokesman for China's Commerce Ministry said on Thursday that the U.S. decision is conducive to the normalization of trade in these products and hopes that bilateral trade relations can return to a normal track.

"Amid soaring inflation and challenges to the global economic recovery, we hope that the U.S. will remove all tariffs on Chinese products as soon as possible to safeguard the fundamental interests of Chinese and U.S. consumers and producers," spokesman Shu Jueting told reporters. .

The Trump administration initially approved more than 2,200 tariff exemptions to ease the burden on certain industries and retailers. Most were allowed to expire, but 549 were extended for a year and these expire at the end of 2020.

In October, U.S. Trade Representative Katherine Tai began reviewing whether to reinstate the 549 waivers as part of her strategy to confront China over trade practices.
Since then, a series of virtual meetings with her Chinese counterparts have done little to improve China's performance under Trump's "phase one" trade deal with Beijing.

/ By tjchinafreight ivy / Shipping

These common Chinese herbal medicines are still dangerous chemicals!

Cinnabar, borneol, turpentine, these commonly used Chinese herbal medicines included in the "Pharmacopoeia of the People's Republic of China" (2020 edition), can you think that they are still dangerous chemicals? Let's take a look at their little-known "two sides" together.

Dangerous chemicals in common Chinese herbal medicines

1. Borneol

Borneol, also known as card brain, orange slice, borneol, is obtained by extracting the resin and volatile oil of Dipterocarpaceae plant borneol. It is a white crystalline powder or flake crystal. , spicy and cool. It can be used as medicine to open the orifices and refresh the mind, clear heat and relieve pain.

Borneol is a hazardous chemical listed in Item 1232 of China's "Catalogue of Hazardous Chemicals" (2015 Edition), the product name is "2-Citol", the CAS number is: 507-70-0, and its hazardous categories include: flammable solids , specific target organ toxicity, etc.
At the same time, in the United Nations "Recommendations on the Transport of Dangerous Goods" (TDG), borneol is listed as Class 4.1 dangerous goods (flammable solids), the United Nations number (UN number) is 1312, and the recommended packing group is Class III .

2. Cinnabar
Cinnabar, also known as cinnabar, cinnabar, red dan, and mercury sand, is a natural ore of mercury sulfide, mainly containing mercury sulfide, as well as realgar, apatite, asphaltene and other substances. The appearance is granular or flake-like, bright red or dark red, and shiny. Weight, brittleness, flakes are easily broken, powdery ones have a shimmering luster, slight gas, and light taste. It can be used medicinally to clear the heart and calm convulsions, soothe the nerves and improve the eyesight.
In the "Catalogue of Hazardous Chemicals" (2015 edition), cinnabar is listed as item 1286, the chemical name is "mercury sulfide", the CAS number is: 1344-48-5, and the hazard categories include: acute toxicity, specific target Organ toxicity, harm to aquatic environment, etc.
At the same time, in the UN Recommendations on the Transport of Dangerous Goods - Model Regulations (TDG), cinnabar is listed as Category 6.1 dangerous goods (toxic substances), the UN number is 2025, and the recommended packaging category is Category II.

3. Turpentine
Turpentine oil is an oleoresin exuded from several plants of the Pinaceae genus, and the volatile oil extracted by distillation or other methods, the main component is terpenes. It is a colorless to slightly yellow clear liquid, with a specific odor, long-term storage or exposure to the air, the odor will gradually increase, and the color will gradually turn yellow. It can relieve muscle pain, treat joint pain and neuralgia, and apply it to the affected area when sprained. It can also promote blood circulation and reduce swelling.
In the "Catalogue of Hazardous Chemicals" (2015 edition), turpentine is listed as item 2098, CAS number is: 8006-64-2, and the hazard categories include: flammable liquid, skin corrosion, serious eye damage, skin cancer, Inhalation hazard, hazard to aquatic environment, etc.
In the United Nations "Recommendations on the Transport of Dangerous Goods, Model Regulations" (TDG), turpentine is listed as Class 3 dangerous goods (flammable liquids), the United Nations number is 1299, and the recommended packing group is Class III.

It can be seen from this that borneol, cinnabar, turpentine, etc., in addition to the attributes of Chinese herbal medicines, also belong to the hazardous chemicals listed in the "Catalogue of Hazardous Chemicals". Then, when the above-mentioned Chinese herbal medicines are exported as commodities, what customs supervision requirements need to be met? Woolen cloth?

Customs supervision requirements

Regulatory Requirements for Exporting Hazardous Chemicals
The "Regulations on the Safety Management of Hazardous Chemicals" stipulates that hazardous chemical production enterprises shall provide chemical safety technical instructions consistent with the hazardous chemicals they produce, and affix the corresponding chemical safety labels on the packaging. The packaging of hazardous chemicals shall comply with the requirements of laws, administrative regulations and rules and the requirements of standards, and the type, specification, method and single quality of the packaging shall be compatible with the nature and use of the hazardous chemicals contained.

According to the "Announcement on Issues Concerning the Inspection and Supervision of Imported and Exported Hazardous Chemicals and Their Packaging" (Announcement No. 129 [2020] of the General Administration of Customs), the customs shall Inspection of the product and its packaging.

Then the cinnabar, borneol, turpentine, etc. listed in the catalogue of hazardous chemicals, no matter whether the customs supervision condition corresponding to the HS code is "B", and whether the inspection and quarantine category is "N", it is necessary to declare the origin of hazardous chemicals before exporting. And export dangerous goods packaging use appraisal, inspection and appraisal pass the electronic account book and packaging use appraisal result sheet before export.

/ By tjchinafreight ivy / Shipping

Do you know all these surcharges for shipping?

Due to various reasons of the ship, cargo, port and other aspects, the ship party increases expenses or suffers economic losses when transporting goods. In order to compensate for these expenses or losses, the ship party stipulates additional charges in addition to the basic rate. Call Surcharge or Additional.
There are many types of surcharges, and as some circumstances change, new surcharges may be removed or established. This article is to sort out the more commonly used shipping surcharges at present, hoping to help you better understand the shipping surcharges (so as not to be pitted).

emergency fuel surcharge
The last bunker-related line in this list of ocean surcharges is the emergency bunker surcharge. This fee is imposed by the carrier when fuel prices rise sharply. Because it makes it more expensive to run ships and move containers around the world.
This is another surcharge that you can't stop.

Comprehensive rate increase surcharge GRI
The full name of GRI is General Rate Increase. It is generally used on South American routes and American routes. Due to various reasons such as ports, ships, fuel oil, cargo or other aspects, the shipping company's transportation costs have increased significantly. In order to compensate for these increased expenses, the shipowners add a comprehensive rate increase surcharge.

Peak Season Surcharge PSS
The full name of PSS is Peak Season Surcharge. This fee is generally charged by many shipping companies for excuses when the freight is busy in the peak season, which is somewhat similar to the price increase in my country's "Spring Festival". April to November each year is generally the peak season for world freight.

Terminal handling fee THC
The full name of THC is Terminal Handling Charge. It can be further divided into OTHC-Origin Terminal Handling Charge, which is the terminal operation fee at the port of departure and DTHC-Destination Terminal Handling Charge, which is the terminal operation fee at the destination port.

Out of spec
If the cargo is oversized, it means that the cargo cannot fit into the hexagonal container due to its size. In this case, you'll have to pay an oversize fee because the cargo will take up more space, require extra material to secure, and mean less space to stack the containers.

Origin Receipt Charge ORC
The full name is Original Receiving Charge local receiving fee/origin receiving fee/origin receiving fee. This fee is more complicated, and it is both different and related to the terminal operating fee THC. ORC is only available in southern China, mainly in Guangdong ports, while THC is available in all ports (including those in Guangdong). There is only one charge for ORC and THC - if you charge ORC, you don't charge for THC. If you receive THC, you will not receive ORC again.
ORC is specially designed for shipping from various ports in southern China, and the destination ports are these ocean routes such as North America, Central and South America, Europe and North Africa. Ports in southern China to other destination ports, such as Southeast Asia, are the same as ports in other regions, and only collect THC.

Overload surcharge
There is no way to bypass the heavy load surcharge if you are shipping unusually heavy shipments. This is a charge because heavy cargo is more difficult to load and unload than light cargo. However, these types of cargo also require specialized equipment such as cranes. A surcharge helps make up for this.

Port Congestion Surcharge PCS
The full name is Port Congestion Surcharge. When the port is crowded or particularly busy, the waiting time and schedule of the ship will be extended, and the port berthing fees such as tugboat fees may also increase, which will cause a substantial increase in transportation costs. In order to make up for this cost loss, the shipping company will charge the shipper. Port congestion surcharge.

Container Imbalance Surcharge CIC
The full name of CIC is Container Imbalance Charge, sometimes called Container Imbalance Surcharge. This fee is a surcharge imposed by the shipping company in order to make up for the cost of shipping empty containers due to the imbalance of trade volume or seasonal changes resulting in the imbalance of cargo flow and containers.

/ By tjchinafreight ivy / Shipping

The country’s truckers have been on strike for two weeks, severely disrupted supply chains, and hit production and manufacturing.

Spanish drivers have been on strike for up to two weeks over rising fuel costs, severely disrupting the country’s supply chain and hitting production and manufacturing in Spain.

 

After more than 12 hours of negotiations on Thursday, March 24, the Spanish government has reached a tentative agreement with a major transport union to provide fuel subsidies for striking truck drivers.
However, as is common in Spanish trade union politics, there were several smaller and different union organisations organising the transport lockout, which rejected the proposal and continued the strike into its third week.

To this end, the Spanish government this week announced a financial package of 500 million euros in direct assistance to the road transport sector, which focuses on reducing taxes on "specialty diesel". The package will be approved by the Spanish Council of Ministers on March 29.

However, the financial package announced by the Spanish government failed to end the drivers' strike.

Three Spanish unions, which mainly represent small businesses, have joined the Platform for Defending the Trucking Industry, an informal association of truck drivers and owner-operators who were the main drivers of the two-week strike.

As the strike action nears its third week, a ripple effect is being felt on roads, supermarkets and restaurants across Spain. Madrid, Valencia region, Basque Country, Andalusia, Navarra, Galicia, Murcia and other parts of Spain have been reported as truckers block major roads, ports, industrial areas and intersections Traffic jams for several kilometers.

Supermarket shelves are empty, with shortages of fruit and vegetables, milk, cheese and other dairy products, especially meat and fish. The dairy industry has been severely affected, with thousands of litres of milk spoiling in factories without trucks moving across the country.

Bars and restaurants across Spain are also feeling the effects of the strike action. Many were forced to change or adjust their menus and even raise prices to make up for some of the losses.

As of Friday morning, the situation remained fluid and it was unclear whether the government would actually negotiate with the striking truck drivers, with demonstrators in Madrid calling for the resignation of Transport Minister Raquel Sanchez as a condition of ending the strike.

This week, food processing multinational Danone warned of "imminent supply disruptions" due to a strike by truckers, and that if a solution cannot be found quickly, it will have to make major decisions and temporarily suspend four of its subsidiaries Activities of a Spanish dairy and three mineral water plants.

Yesterday, it was reported that the company had halted production at one of its breweries, and Dutch brewer Heineken also warned that it may have to cut production due to a lack of some supplies.

The country's truckers have been on strike for two weeks, severely disrupted supply chains, and hit production and manufacturing.

German supermarket chain Lidl has closed two stores in Asturias due to supply difficulties, and other retailers including Aldi have also reported shortages of certain products, such as milk, flour and oil.

The prolonged strike has raised fears that supermarket shelves will be empty and threatens road exports of Spain's fruit and vegetables during a crucial time of the year for the market.

The strike also affected the auto industry, with assembly lines disrupted by strikes by truckers and roadblocks, local media reported. Production at Volkswagen's Pamplona plant has been hampered by a supply shortage and Ford has proposed temporary layoffs for the second quarter as it struggles to secure deliveries of critical components and microchips. Opel and Mercedes were also forced to scale back their operations.

The Spanish government is believed to have mobilized 24,000 police officers to help escort truck drivers who were not involved in the strike.

/ By tjchinafreight ivy / Shipping

VLCC again records its worst deal ever

Freight rates for very large crude oil tankers (VLCCs) on major routes have been unusually weak, again recording their worst trading ever, with owners willing to accept only four-digit daily rates.

Under such circumstances, according to data from the Baltic Exchange (Baltic Exchange), the VLCC equivalent time charter equivalent rates (TCE) assessed by the agency continued to fall by $800 this Friday to -28354 USD/day! Obviously, this figure is lower than the record low of 27,893/day set on March 10.

Shipping brokerage firm Howe Robinson said in this week's market report that the Middle East VLCC route has directly "kneeled", and we have seen a large number of charters hitting new lows.

In addition, the fall in rent levels contrasted sharply with the rise in fuel prices. The rise in fuel oil prices has kept shipowners' earnings in a negative range.

According to Tankers International data, 7 VLCCs were booked on Thursday, and one of the 299,999dwt Ascona was the highest lease level, but the TCE was only US$8,342 per day. The charterer was Unipec UNIPEC, from West Africa to China. , the expected loading date is mid-April.

The lowest was - $5738/day for the 320,475 dwt Maran Canopus (built 2007) owned by Maran Tankers, scheduled to be loaded for Vietnam's NSRP in the Middle East Gulf in early April. The round is about to be docked for the third time this year and should be repaired.

However, figures from Tankers International show that all of those leases are ultimately expected to face losses.

Ascona was the only one successfully leased on the same day for the West Africa route. The other two 303,120-dwt Front Empire and 318,440-dwt Astro Chloe were not concluded.

"A charter that doesn't close will also end up causing more trouble for owners," Howe Robinson said. "However, as more and more owners refuse to execute long voyages at such low prices, we are seeing Owners are trying to get higher prices.”

Overall, the Baltic Dirty Tanker Index, the BDTI index rose 19 points to 1112 at the end of the week. The rise was mainly due to the TCE of Aframax vessels rising by $1,934 to $28,672/day, although suezmax vessels also fell by $1,530/day to $34,401/day.

The rise of aframax was mainly due to the increase of $16,710 on the TD17 Baltic-UK/Continental route, which closed at $133,657/day this week. This route, as well as the TD6 Black Sea to Mediterranean suezmax route, continues to rise, mainly because both routes involve Russian deals.

/ By TJ China Freight / Logistic

How To Choose A Good Freight Forwarder?

When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.

What is a Freight Forwarder?

A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.

Tips On How To Choose A Good Freight Forwarder

Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.

1. Do Your Homework And Know What You Need

The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.

You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.

When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.

2. Consider The Freight Forwarder’s Experience And Network

This is non-negotiable!

The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.

Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc.  Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.

With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.

3. Find Out The Services They Offer

By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.

When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.

4. Inquire About Their Permits, Credentials, And Certifications

Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.

Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.

5. What Risk Management Procedures Do They Have In Place?

It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.

A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.

6. What Is Their Customer Service Like?

Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.

Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like.  You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.

Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.

What About Pricing And Rates?

You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.

For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?

What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.

How To Ask For Shipping Rates From Your Freight Forwarder

Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.

To request for a quote from TJ China Freight, the information required include:

1. Product Name.

The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?

2. INCOTERMS Or Terms Of Sale.

Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?

3. Weight And Volume Information.

If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.

4. Address Of The Supplier Or Factory.

If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.

5. The Destination Address Or Port Of Destination.

For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.

6. Your Preferred Shipping Method (Air Freight, Express Freight, Sea Freight, or Train Delivery).

The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.

7. Your Preferred Time of Delivery – How Quickly Do You Want The Shipment To Be Delivered.

If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.

TJ China Freight, Your Best Freight Forwarder In China

As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.

/ By TJ China Freight / Shipping

freight volume will continue to remain high

Due to the prevalence of port congestion and box shortages in Europe and the United States, freight volumes on the European and American routes will remain high.

Industry insiders predict that shipments from Asia to Europe will continue into the third quarter, and delays in US and European ports will continue to be the main bottleneck in the supply chain.

The National Retail Federation (hereinafter referred to as NRF, The National Retail Federation) predicts that this year's retail spending and consumer demand may further soar, the increase may be as high as 8.2%. According to NRF data, due to the substantial increase in demand, container throughput will increase by 23% in the first half of the year.

Consultant Jon Monroe pointed out, “Given that many importers are struggling with low inventories, replenishing inventory in order to meet their volume may be the key driving force for this year’s growth. Therefore, the question that everyone needs to face is how to deal with another possible occurrence. A turbulent year?"

 

NRF predicts that freight volume will continue to remain high; Clarkson: trade volume will exceed 2019

 

 

Monroe said that most cargo owners (BCO) now intend to end contract negotiations and try to plan for expected market fluctuations, which may mean that contract requirements have not been met, soaring freight rates and shipping schedule reliability have been put on hold again.

Monroe made some suggestions for companies facing supply chain disruptions this year, including finding alternative delivery ports for imported goods other than Los Angeles and Long Beach, while optimizing warehouse efficiency while free time is reduced.

According to the table below, it is currently estimated that the "new normal" delivery time for goods arriving on the West Coast of the United States is currently expected plus 4 to 5 weeks.

 

NRF predicts that freight volume will continue to remain high; Clarkson: trade volume will exceed 2019
The estimated delivery time (cargo is delivered via DC) is an additional 4 weeks for LA-LB port (an additional week this year)

The current situation of European cargo owners is similar to that of the United States. Port congestion is still the main problem, and the shortage of containers has exacerbated these difficulties. Especially in the United Kingdom, due to the problem of the space for storing empty containers, there has been a significant increase in delays in container delivery. Brexit has also had a certain impact.

According to data from Container xChange, “the trade interruption and continued congestion after Brexit are causing serious container accumulation in British ports.” said Dr. Johannes Schlingmeier, CEO of xChange, when the CAx index exceeds 0.5, it indicates that more containers are imported than exported. The index "increased significantly last year, with 40-foot containers rising from 0.71 to 0.86, and 20-foot containers rising from an average of 0.72 to 0.85."

 

NRF predicts that freight volume will continue to remain high; Clarkson: trade volume will exceed 2019

 

 

Schlingmeier said, “The British ports are full of empty containers. If this problem becomes too serious, you may see additional charges for new (arriving) containers next.”

Container xChange stated that the link between Brexit and CAx is that as the United Kingdom leaves the European Union, British ports (mainly the Port of Felixstowe, but also the ports of Liverpool and Southampton) are facing severe congestion. British companies have become a problem, and some shipping companies have increased surcharges.

"To make matters worse, some shipping companies are currently unloading at EU ports such as Hamburg, Rotterdam and Antwerp to avoid congestion at British ports. As a result, the CAx values ​​of these ports have increased in the past few weeks," Schlingmeier explained. And added a reminder that CAx will further monitor the number of containers entering and leaving the port. Four or five months ago, shipping companies waited for return goods at European ports for two months, and now they are "carrying back to Asia with empty containers full."

Clarkson predicts that the volume of seaborne trade this year will exceed the level of 2019

Clarkson Research Services acknowledged that major uncertainties still exist, but it is expected that the global seaborne trade for the whole year of 2021 is not only expected to return to the level of 2019, but also expected to be this level.

Clarkson predicts that this year's seaborne trade volume will increase by 4.2% to 12 billion tons, which is 0.5% higher than the level in 2019. Clarkson estimated in a recent weekly report that in 2020, global seaborne trade will fall -3.6% for the whole year to 11.5 billion tons. In the first few weeks of 2021, most non-tank shipping industries will show high utilization rates and high rates.

The International Monetary Fund (IMF) predicts that the global economy will grow by 5.5% this year. Following a 3.5% drop last year, the economy in 2021 will grow by 1.8% over 2019. Looking at emerging economies and developed economies separately, only emerging economies will return to the level of 2019 this year. The IMF expects that emerging economies will grow by 6.3% and will fall by 2.4% in 2020. On the other hand, advanced economies are expected to grow by 4.3%, which is lower than the 4.9% decline in 2020.

A report from the Baltic International Chamber of Shipping (BIMCO) at the end of last month pointed out that the recovery in 2021 will not bring good news to everyone. The exact speed of the recovery will depend on the development of the epidemic and changes in travel restrictions and other containment measures.