/ By tjchinafreight ivy / Shipping

How to apply for FMC airline qualification in the United States ?

A few days ago, the US Federal Maritime Commission (FMC) issued a notice that it will investigate the surcharges of eight ocean carriers - including related surcharges such as congestion surcharges related to the continued surge in freight demand.

Eight ocean carriers were asked to provide details of their congestion surcharges and any associated charges to the FMC's Enforcement Bureau. The expedited investigation requires carriers to provide evidence by August 13, 2021 that their surcharges are in compliance with the FMC's regulatory requirements.

How to apply for FMC airline qualification in the United States
How to apply for FMC airline qualification in the United States

What is US FMC?

FMC is the abbreviation of the Federal Maritime Commission. It is headquartered in Washington and has three functions: executive legislation, quasi-judicial and law enforcement. It is in charge of and supervises the maritime commercial activities mainly based on container shipping starting and ending in the United States. . Ocean carriers and brokers are regulated by it.

The role of FMC:

Manage water freight rates, charges and operations for cargo such as containers in U.S. coastal trade, foreign trade and re-export trade;

Manage the operations of the container ocean shipping industry and companies that provide container terminal handling facilities;

Approve, veto, outlaw or revise meetings and agreements between water carriers (shipping companies) in U.S. foreign trade and domestic cabotage and the contractual freight rate system they employ;

To develop regulations to address conditions that are detrimental to the U.S. shipping industry due to foreign laws or competition from foreign-flagged container ships and other freighters;

Hear allegations of various violations of maritime law and determine whether it is illegal.

How does China's NVOCC file with the US FMC

The specific reporting requirements of FMC include:

1. Tariff (public tariff) does not need to be reported to FMC, and the carrier must publish its published tariff through appropriate electronic means to ensure that anyone (including FMC) can easily inquire at any time.

2. Service contract: A written contract signed by one or more cargo owners and a single ocean common carrier or an agreement organization composed of multiple ocean common carriers in addition to the bill of lading or cargo receipt. According to the contract, the owner promises to provide a certain amount of goods or the proportion of the goods within a fixed period of time, the carrier or the carrier organization promises a certain price or price arrangement, and the agreed service level, including guaranteed space, transportation time, Port order or similar service content. The contract can also provide for the breach of contract by both parties.

3. The carrier must report the complete service contract or amendments to FMC before the goods are shipped. FMC has strict requirements on the format and content of contracts. Each contract must have an independent contract number (SC Number), and each change must have an Amendment Number arranged in sequence.

4. Except for the origin, destination, product name, minimum quantity guarantee, and contract validity period, other contract contents are kept confidential by FMC.

/ By tjchinafreight ivy / Shipping

Mason regular ship and overtime ship

As the main mode of transportation in international trade, international shipping accounts for more than two-thirds of the total international trade volume. When it comes to shipping, we have to mention Mason, which is divided into regular ships and overtime ships. What is the difference between them? Next, let's take a brief look at it.

Mason regular ship and overtime ship!
Mason regular ship and overtime ship!

The sailing dates vary:

Mason's regular ships usually sail every Wednesday in Shanghai, and overtime ships usually sail on Thursdays. Generally speaking, they will sail for 11 days. The sailing time at Ningbo Port will be one day earlier, usually every Wednesday.

The efficiency of the cabinet is different:

After unloading the container, Matson's main ship will also load other goods to Hawaii immediately. This part of the route is their own domestic transportation, so Matson will arrange enough manpower on the dedicated terminal to unload and load the ship. The front and the frame of the United States are separated, and the Mason regular ship can ensure that each frame and box are ready to be pulled by the front, so the efficiency of the regular ship cannot be replaced by other ships.

Prices vary:

The timeliness of the main ship of Mason is very fast. If it arrives in the west of the United States, it can be put into the warehouse within 9 working days. Of course, the price will be more expensive than the overtime ship. There are other types of services of Mason, such as time-limited arrival, less than package. Compensation and other prices will also be a bit more expensive than other types of services. Sellers who pursue the timeliness of goods transportation can consider this type of service.

The docks at the unloading port are different:

After the main ship of Matson arrives at the port of destination, it will stop at the Port of Long Beach and the Port of Oakland. According to the official information of Mason Steamship, the pick-up location of Long Beach Port is located in the out-of-port storage yard (STE) 3.5 miles away from the terminal, and the pick-up location of the Oakland port is located at Pier 63 or 0.5 miles away from the terminal. There is no need to make an appointment for each of the lockers and the lockers. Therefore, the general cargo can be picked up the next day after arriving at the port.

Matson overtime ships usually dock at Pier A for unloading. This wharf is a joint venture between Matson Shipping, MSC and Yixing Clipper, which is a public wharf. Therefore, the unloading efficiency of the overtime ship of Mason docked at this terminal is relatively low. When the number of ships at the terminal is large, there is even a queue to wait for the port.

How to quickly distinguish between Mason's regular ships and overtime ships?

Look at the route code. The code of the main ship of Mason is CLX, and the code of the overtime ship is CLX+.

The CLX+ departed from Shanghai on Thursday to the Port of Long Beach on an 11-day voyage, and from Ningbo to the Port of Long Beach on a 13-day voyage.

There is also a peak season overtime express, namely CCX. It takes 12 days for CCX to sail from Shanghai to Oakland Port, and it takes 14 days to sail from Ningbo to Oakland Port. Generally, ships stop at Oakland Port for 2-3 days and leave, and then go directly to Long Beach Public Port, with a 1-day voyage. Because of the stopover in Auckland, the voyage between Shanghai and Long Beach will be 2-3 days longer than CCX and CLX+.

The transportation time between the main ship and the overtime ship will be about 4-6 working days. If there is no great requirement for the transportation time of the goods, you can also choose the overtime ship. Of course, it is better if there are other shipping companies. The shipping channel is also optional.

/ By tjchinafreight ivy / Shipping

Supplementary charges for port terminal canals

Everyone also knows that there are many types of shipping surcharges. In order to make up for their own losses in various aspects, the ship party has added a number of surcharges in various names. However, among the marine surcharges, some charges are imposed by the port, terminal, or canal authority. Do you understand this kind of cost? Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities.

Notice to sellers: Analysis of these additional costs for port canals

Supplementary charges for port terminal canals
Supplementary charges for port terminal canals

Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities. The canal authority adds a surcharge to the ship owner based on each vessel’s net Suez tonnage and the canal rate table, and the owner collects this fee from the customer in the form of the Suez Canal Surcharge.

Everyone also knows that there are many types of shipping surcharges. In order to make up for their own losses in various aspects, the ship party has added a number of surcharges in various names. However, among the marine surcharges, some charges are imposed by the port, terminal, or canal authority. Do you understand this kind of cost? Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities.

Notice to sellers: these kinds of additional charges on the port canal

Port Surcharge (PS)

In some ports, due to poor equipment conditions or low loading and unloading efficiency, as well as other reasons, the shipping company charges additional fees. It is generally calculated as a percentage of the freight, but some ports charge it per freight ton. Each freight ton is calculated by the gross weight of the goods or by volume. The difference between it and the port congestion surcharge is that the port surcharge is relatively fixed.

Port Congestion Surcharge (PCS)

Due to the congestion of some unloading ports, the berthing time of ships at the port will increase, which will affect the operating costs of the shipping company. In order to make up for this part of the loss, the surcharge charged by the shipping company to the cargo party is the port congestion surcharge. This part of the fee is directly affected by the degree of port congestion. If the port returns to normal, this part of the fee will be cancelled, but the port congestion surcharge has been charged when the freight is prepaid and will not be refunded.

Terminal Handling Charge (THC)

Terminal operation fee refers to the fee charged by the port, terminal, and loading and unloading company to the carrier to receive the exported container at the loading port yard, store it and transport it to the side of the ship, which includes the container cargo during the terminal period. All loading and unloading, translation, hoisting and hoisting costs and corresponding labor costs. According to the port of departure and the port of destination, the terminal operation fee can be divided into two types: the terminal operation fee at the departure port (OTHC) and the terminal operation fee at the destination port (DTHC).

/ By tjchinafreight ivy / Shipping

International express should not be ignored

International express is the delivery channel that many foreign trade and cross-border e-commerce sellers will choose, but everyone must pay attention to the following matters when sending international express to avoid unnecessary trouble and loss.

Do not ignore these things when sending international express
Do not ignore these things when sending international express

1. When sending express mail, it should be written in English in detail, accurately and accurately, and the handwriting is clear.

2. The return address should be detailed and accurate, and try to provide a phone number so that you can contact in time when there is a problem with the express delivery.

3. Parcel express does not include cash, dangerous goods and other prohibited items listed in national laws and relevant regulations, as well as items prohibited by the carrier from express delivery. For example, some courier companies do not carry sensitive items such as food and medicines.

4. In order to ensure the smooth customs clearance of delivery, please use English to declare to the customs in detail and truthfully in the corresponding column, the name of the goods, the quantity, the weight, the declared value, and the place of origin, etc. At the same time, any additional item expressions should be completed in English. In triplicate (must have at least one), or may cause delays in customs clearance.

5. International express delivery involves the entry customs tax of the destination country. Different overseas countries have different tax bases and standards. When you send international express, you usually need to fill in the goods list and the value of the goods. The value of this cargo requires you to be familiar with the customs thresholds of different countries. It is very important to carry out reasonable customs declaration according to different countries and the size and weight of the package.

6. Choose a professional international express company, which can not only provide free carton packaging, but also help you strengthen the packaging, free vacuuming, reduce the volume, and reduce the corresponding shipping costs, saving the customer's worry and effort throughout the entire process. Help customers Peace of mind.

7. If the delivery problem is which one of the four major international express delivery or EMS is used, you can choose the first-level agent of the four major international express delivery and EMS, and use the agency price for transportation, the price is low, and there are more choices.

/ By tjchinafreight ivy / Shipping

Say something you don’t know about European air freight!

I believe that many cross-border e-commerce sellers engaged in the European market will have the experience of shipping from domestic to foreign countries. Maybe some people are planning to transport their goods by air, but they are hesitant because they do not know enough about European air transportation. . It doesn't matter, now you can get a more comprehensive understanding of European air freight through the following points of cold/hot knowledge.

Say something you don't know about European air freight!
Say something you don't know about European air freight!

First of all, the cost of air transportation is relatively high. There are fixed flight routes from China to Europe, and it takes about 10 days. The longer air transportation time is because the airlines will round up or arrange some bulk cargoes in order to save transportation costs, which will delay some time. This mode of transportation is a little slower than direct express delivery, but the overall timeliness is still faster compared to ocean and rail transportation. If you use the Amazon FBA head-way service, the air express is usually reserved without reservation, which reduces a lot of trouble.

Air transport flights are divided into direct flights and transfer flights. A direct flight refers to a direct flight from the origin station to the destination station without transit. For example, Guangzhou China Southern Airlines flies directly to London. Transfer refers to the need to transfer more than one way from the origin station to the destination station. For example, China Eastern Airlines taking off from Guangzhou needs to fly back to Shanghai for transfer. Diversion flights are generally due to air rights issues to fly back to the local area for transfer or stopover. The difference between the two is that non-stop flights have higher stability, and the stability of connecting flights is relatively lower than that of direct flights, but the price of connecting flights generally has an advantage.

There is also a case of air charter flights, mainly including Liege Airport (LGG) in Belgium and London Thyro Airport (LHR) in the United Kingdom. Generally, this type of flight is a direct flight, so the stability of the flight is high. But at the same time, such flights also have disadvantages. For example, if the inspection is not timely, the flight cannot be boarded, and the flight density is not high, which will delay the shipment until the next week, resulting in problems with the timeliness. On the back end, there will also be delays in the timeliness due to the accumulation of a large number of goods, and at the same time, there may be misclassification of goods and lost pieces after unpacking.

European air freight declaration elements:

For domestic export declaration and foreign import customs clearance, detailed cargo information needs to be provided to the customs broker/clearance bank to declare export/import. The requirements for the declaration elements corresponding to each customs code are different, but in general the following are essential: Product name , Customs code, material, brand, type, ingredient content. We hereby remind all cross-border e-commerce sellers that the declaration elements should be as detailed and clear as possible. Detailed declaration elements will reduce the probability of inspection.

/ By tjchinafreight ivy / Shipping

U.S.-West Port labor negotiations are imminent

U.S.-West Port labor negotiations are imminent
U.S.-West Port labor negotiations are imminent

Labor negotiations are imminent, and the Pacific Maritime Association (PMA), which represents shipping companies and terminal operators, has released a research report that counts the benefits of port automation, but the trade unions (ILWU, International Longshore and Warehouse Union, American International The Terminals and Warehousing Alliance) argues that productivity gains from port automation have exacerbated employment imbalances.

The study, commissioned by PMA and conducted by UC Berkeley public policy professor Michael Nacht, was released on May 2. According to Michael Nacht and Larry Henry, founder of Container Trac, automation is good for the competitiveness and growth of ports on the U.S. West Coast. At 13 container terminals in the Ports of Los Angeles and Long Beach, automation benefits trade, the environment and workers, providing more jobs, the study said.

On the employee side, ILWU workers have increased their paid hours at automated terminals in Los Angeles and Long Beach by 31.5 percent since 2015, the last year of the transition to automated operations, more than double the rate at non-automated terminals, the data shows. ILWU's registered labor force in Los Angeles and Long Beach grew 11.2 percent, compared with 8.4 percent at the other 27 West Coast ports.

In trade, automation has halved container handling time since 2019. Terminals can handle 44 percent more containers per acre than non-automated terminals because automated vehicles and cranes can stack containers higher and denser and transport them more efficiently by trucks and trains. Michael Nacht said: “Higher terminal throughput can provide more port-related jobs and increase employment across the supply chain. If the trend of automation is not kept up, cargo will be diverted to other ports, resulting in terminal and Job losses across the region.” PMA chief executive Jim McKenna said in an interview last month: “The Covid-19 pandemic and the surge in cargo have proven that automated terminals are much more efficient than traditional terminals. As these terminals With a lot of cargo being handled, they actually provide more jobs for dockworkers as well.”

However, these conclusions were not endorsed by the ILWU, and union representative Frank Ponce De Leon responded that the report did not take into account workers who lost their jobs due to the introduction of automated machinery, and that the increase in container throughput at automated terminals was also reflected in the apparent decline in throughput at other terminals. costly and will result in job losses.

The PMA has long campaigned for the introduction of automation in the terminals but has been criticised by the international terminal ILWU. Negotiations between the PMA and the ILWU will take place on May 12 to develop new labor contracts for the 22,000 West Coast dockworkers due July 1.

/ By tjchinafreight ivy / Shipping

How to Calculate Multimodal Import Dutiable Value

How to Calculate Multimodal Import Dutiable Value
How to Calculate Multimodal Import Dutiable Value

The concept of international multimodal transport

The United Nations Convention on International Multimodal Transport of Goods defines international multimodal transport as, in accordance with the international multimodal transport contract, at least two different modes of transport, the multimodal transport operator takes over the goods from the territory of a country. Carriage of goods to a designated delivery point within another country. The "Maritime Law of the People's Republic of China" stipulates that domestic multimodal transport is: there must be a way of shipping. For international multimodal transport goods, the carrier issues a full transport document, also known as a multimodal transport bill of lading.

With the continuous development of China's economy, more and more goods enter my country's inland cities by multimodal transport. Inland transport has become an important component of multimodal transport, and inland freight also exists as part of the entire freight rate. . In reality, there are confusions about whether the freight in the inland section of multimodal transport is deducted and how to deduct it.

Is the freight for inland section related to the import dutiable value?

According to Article 3 of the "Guidelines for Valuation of Imported Maritime Transportation and Related Expenses" (hereinafter referred to as the "Guidelines"), the inclusion of transportation and related expenses into the dutiable value of imported goods shall satisfy the following three conditions: first, it is related to transportation; second It should be calculated until the goods arrive at the import point within the territory of the People's Republic of China before unloading; the third is actually paid by the buyer and should be paid.

According to the nature of the freight for the inland section of the import transit, the above conditions are marked one by one: First, the freight of the inland section is indeed related to transportation, and the conditions are met; second, the conditions are not met before the loading and unloading at the domestic import point - take the sea port as an example , when the trunk line means of transport enters the country (the demarcation point of "before unloading"), that is, the branch line transportation from the sea port to the inland point, after the loading and unloading; the third is the actual payment by the buyer, which should be paid, which needs to be based on specific trade terms. to judge.

According to Article 5 of the "Guidelines", there are two conditions for the identification before the arrival at the import location within the territory of the People's Republic of China. The place where the imported goods leave the means of transport for the first time; the other is before unloading, which refers to the beginning of the loading and unloading of goods.

The key point of the identification condition 1 is: the means of transport for international voyages and the imported goods leave the means of transport for the first time, which can be judged that the inland port where the goods are transported in the inland segment does not meet the definition of "input location"; the second identification condition mentions Pre-loading and unloading refers to the loading and unloading of goods transported in the inland section before the act of loading and unloading (international navigation means of transport), which does not meet the definition.

To sum up, according to Articles 3 and 5 of the Guidelines, the freight for the inland section is not included in the dutiable value.

/ By tjchinafreight ivy / Shipping

What is Electronic Export Information (EEI)?

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

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

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

General EEI filing requirements

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

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

Who submits the EEI?

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

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

/ By tjchinafreight ivy / Shipping

How Certificates of Insurance Affect Your Cargo Insurance Claims

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

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

How does a certificate of insurance affect your claim?

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

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

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

The importance of managing cargo insurance certificates

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

Certificates of insurance typically include the following information:

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

Alternatives to Certificates of Insurance

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

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

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

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

/ By tjchinafreight ivy / Shipping

A Simple Guide to Dock Receipts

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

What is a dock receipt?

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

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

Electronic Terminal Receipt

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

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

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