/ By TJ China Freight / China Freight News • Logistic

How Does EXW China Work? What Are Pros of Cons of EXW Shipping

EXW (Ex Works) is a trade term used in international trade to describe a shipment arrangement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, customs clearance, and any other charges involved in getting the goods from the seller’s premises to their final destination. EXW China is a trade term where the seller makes the goods available at their premises in China, and the buyer is responsible for all transportation costs and other charges involved in getting the goods to their final destination.

EXW works

When it comes to EXW China, the process works in the following way:

  1. The buyer and seller agree on the details of the sale, including the price, quantity, quality, and delivery terms.
  2. The seller prepares the goods at their premises, which could be a factory, warehouse, or other location in China.
  3. Once the goods are ready, the seller informs the buyer, who arranges for a freight forwarder or shipping agent to collect the goods from the seller’s premises.
  4. The buyer is responsible for all costs involved in transporting the goods from the seller’s premises to the final destination, including transportation costs, customs clearance, and any other charges.
  5. The buyer assumes all risk and liability for the goods once they leave the seller’s premises.
  6. EXW China is a trade term where the seller makes the goods available at their premises in China, and the buyer is responsible for all transportation costs and other charges involved in getting the goods to their final destination.

EXW China shipping has its advantages and disadvantages. Here are some of the pros and cons:

Pros:

  • Cost-effective: Since the buyer is responsible for arranging transportation, customs clearance, and other charges, the seller’s cost is lower, which can translate into a lower purchase price for the buyer.
  • Control: The buyer has more control over the shipment, including choosing the freight forwarder, the shipping method, and the timing of the shipment.
  • Flexibility: The buyer can choose the most cost-effective shipping option and negotiate better rates with the freight forwarder.
  • Transparency: The buyer knows exactly how much they are paying for transportation and customs clearance, so there are no hidden costs.

Cons:

  • Risk: The buyer assumes all risks associated with the shipment, including loss, damage, or theft of the goods during transportation.
  • Responsibility: The buyer is responsible for arranging transportation, customs clearance, and other charges, which can be complicated and time-consuming.
  • Limited options: The seller may not have access to the same range of transportation options as a freight forwarder or shipping agent, which could limit the buyer’s options.
  • Communication: There may be language barriers or cultural differences between the buyer and the seller, which could make communication challenging.

EXW China shipping can be cost-effective and flexible, but it also requires the buyer to assume more responsibility and risk. Buyers should carefully consider their options and assess the potential risks before choosing this shipping method.

china freight

What role do China freight forwarders play in EXW China shipping?

Communication: The buyer and the seller agree on the terms of the sale, including the price, quantity, quality, and delivery terms. Once the seller has prepared the goods, they notify the buyer, who then contacts a freight forwarder.

Transportation: The freight forwarder arranges for the transportation of the goods from the seller’s premises to the buyer’s destination. They work with a network of carriers, including air, sea, or land transport providers, to find the most efficient and cost-effective shipping option.

Documentation: The freight forwarder helps the buyer with the necessary documentation required for customs clearance, including bills of lading, commercial invoices, and packing lists. They also provide guidance on import regulations and compliance requirements.

Customs clearance: The freight forwarder works with customs officials to ensure that the goods comply with all import regulations and clear customs smoothly. They handle all necessary paperwork and payments on behalf of the buyer.

Delivery: Once the goods have cleared customs, the freight forwarder arranges for the final delivery to the buyer’s destination, which may include trucking, rail, or other transportation options.

Freight forwarders act as intermediaries between the buyer and the seller, helping to coordinate the transportation, documentation, and customs clearance process in EXW China shipping. They provide expertise and guidance, which can help to simplify the process and reduce the risk of delays or errors.

/ By TJ China Freight / Cargo • China Freight News • Logistic • Shipping

How to Reduce Containers Shipping Cost When Importing From China 2023?

Containers’ shipping cost is always a big expense for those international sourcing businesses, especially importing from China which was affected by Covid-19. However, after Chinaended the Covid restrictions in early December 2022, the ports will become busier and it is predicted that shipping rates will rise in 2023. To help you reduce the shipping cost when importing from China, TJ China freight here will share some tips:

First, choose a reliable local freight forwarder in China

Once you hired a suitable forwarder, you will find that importing process is extremely easy. The benefits you will get are the valuable resources in Asia. Most China forwarders provide customized services such as fcl, consolidation, re-labeling, and repackaging for a fraction of the cost compared to what it would cost at the destination. Also, they will follow up with the supplier in real-time and logistics info.

With a reliable China freight forwarder, your business is valued and service is personalized according to your cargo, your destination, your departure time, and unique requirements. As local forwarders are on the ground, they can easily find the best pricing based on their client’s specific logistics needs. With them having a detailed understanding of the local network, they can optimize your supply chain, saving you money and time.

Second, choose the best methods of shipping in advance.

When you decide to import products from China, planning your shipping will make the process more effective. It will include a clear description of your business scope, goods types, weights, quantities, destination, volumes, shipment frequency, lead times, and potential routes like sea freight, air freight or rail freight.

Each mode of shipping has its own advantages and disadvantages, and you should understand them. Choosing the right transport method can help reduce the cost and damage to the goods. When shipping by air, you will save a lot of time if you choose a direct flight. When shipping by sea, you will save a lot of cost for shipping large-volume cargo, but it will take longer time.

Third, properly packing to reduce the volume and damage

Generally freight rates are based on the shipment’s weight or volume, so it is important for you to pack your products properly. Otherwise, you will pay more than what you need to. Also some goods are special, so ensure that your goods have proper outer packaging, as well as inner packaging; that the boxes are sealed properly and labeled correctly.

If your shipments tend to be bigger quantities, it’s worthwhile to look into LCL (Less than Container Load) and FCL (Full Container Load) shipping. This is one area where you may be able to save substantially on shipping products sourced from a Chinese supplier.

If you want to ship enough products in one shipment for a full container, it is called FCL and you can use the whole container for yourself. Shipping FCL is normally a lot cheaper than if you ship by weight or volume.

Another advantage of shipping FCL is that you will be encouraged to buy larger quantities of products at the same time. This will reduce the cost per unit dramatically. On average, FCL shipping costs are between 30% and 40% lower than LCL shipping. This option is however only feasible if you do move larger quantities of goods at the same time.

Fourth, know the forwarding process well and plan ahead

After you know the process of freight forwarding, you will have a clear plan and instructions when communicating with your forwarder, and that will help you save some unnecessary expenses. For example, most veteran importers clearly understand the operating procedures of shipping and will book the space ahead of time and get cargo delivered according to the arrangement of the forwarders.

Planning ahead means you will have enough time to choose the suitable transportation method. A good freight forwarder will help you arrange the cargo shipping properly. All other shipping strategies for saving costs are based on this. Make sure to book your cargo two weeks earlier ETD when importing from China. For example holiday impact.

Chinese New Year (abt 3 weeks, lunar calendar)

National Holiday: 1 week, Oct 1st ~ Oct 7th

Fifth, Compare the rates of different companies.

To find the most competitive price, you can find many different companies and compare the rates and services. Different forwarders have their own advantages and services they can offer. It is advised that you use the same shipping method and one company to save costs. Shipping costs vary widely, even for the same freight company. Get a shipping quote from multiple freight forwarders, compare them and you can get the competitive one.

2023 has already come. This year will be with huge opportunities and potential for business. Good luck and TJ China freight is your best partner to help in handle your 2B logistics by sea, air and rail. Feel free to send a quote if you need any China forwarding service!

/ By TJ China Freight / Logistic • Shipping • Transport

2023 Latest Shipping Guide| Read It To Make You Understand More About Shipping

Main feature

Ocean transportation is carried out with the help of natural waterways, which are not restricted by roads and tracks and have a stronger passing capacity. As the political, economic and trade environment and natural conditions change, the route can be adjusted and changed at any time to complete the transportation task.

With the development of the international shipping industry, modern shipbuilding technology is becoming more and more sophisticated, and ships are becoming larger and larger. The ultra-large oil tanker has reached more than 600,000 tons, and the container carrying capacity of the fifth-generation container ship has exceeded 5,000 TEU.

There are two main types of maritime transportation: liner transportation and chartered transportation. Liner shipping is also called regular ship shipping, and charter shipping is also called irregular ship shipping.

Mode of operation

  1. Liner transportation

Liner shipping refers to a kind of ship that conducts regular and repeated voyages between specific routes and established ports in accordance with a predetermined schedule to engage in cargo transportation and collect freight charges in accordance with a pre-published rate table. shipping method. Its service objects are non-specific and scattered cargo owners, and the liner company has the nature of a common carrier.

  1. Chartered transportation

Chartering refers to a method in which the charterer leases a ship from the shipowner for cargo transportation, and is usually applicable to bulk cargo transportation. Relevant routes and ports, types of goods to be transported, and sailing time are all confirmed by the shipowner in accordance with the requirements of the charterer. The rights and obligations between the charterer and the lessor are determined by the charter contract signed by both parties.

Advantages of shipping

  1. Large carrying capacity.

A very major advantage of ocean freight is the ability to handle oversized, heavy or bulky cargo – commonly known as bulk or non-trailer (NIT) cargo, including large vehicles, equipment, construction materials, and more. The carrying capacity of sea ships is far greater than that of rail and road transport vehicles. The world’s largest oil tanker is 500,000 tons.

    1. Low freight.

From the point of view of economies of scale, because of the large volume and long voyage, the transportation cost allocated to each ton of goods is small, so the freight rate is relatively low. Is the most economical international shipping option（Let’s say you have a hundred pounds of clothing that need to be shipping from China to Australia）.

  1. Strong adaptability to goods.

Ocean shipping ships can meet the needs of various transportation. Many ships are now specially designed according to the needs of the cargo. For example, multi-purpose ships and specialized ships provide conditions for the transportation of different goods.

  1. Good security

Vessels are designed for the safe transport of hazardous materials and dangerous goods. Ocean Freight is well-versed in the handling of such cargo and has regulations in place to ensure the safety of ships, crews, cargo and the environment. With the improvement of maritime transportation safety, the rate of cargo loss caused by accidents during transportation has been decreasing. Containers are designed to keep cargo sealed and locked during transit, further increasing the security of shipments.

Like the means of transportation on land, sea transportation can also be divided into passenger transportation and freight transportation. What we mainly understand today is freight transportation . According to the different types of cargo transportation, freight can be roughly divided into dry bulk, oil transportation, containers, general cargo, liquefied gas transportation, chemical transportation, and some special goods transportation, such as semi-submersible ships and some ships used for oil tanker drilling Wait.

The transportation of the entire bulk trade by ship or sea can be roughly divided into three categories: dry bulk shipping, container shipping, and tanker shipping. The research on shipping in the market mainly focuses on three aspects: dry bulk cargo, oil transportation and containers . When it comes to the good and bad of the shipping market, the fluctuation of the shipping market, etc., it is also analyzed from these aspects , among which containers are the most common . You often see ships with neatly stacked boxes on the seashore. They ship some of the most commonly used light industrial products or small daily life. Supplies, etc., many large coastal cities have container terminals that provide loading and rest.

Dry bulk carriers and oil tankers, we have relatively little contact with them in our daily life, and we can only see them when they are docked at the dock. During sea transportation, they will not sail close to the sea, so there are not many opportunities for you to see them.

From the perspective of global shipping trade classification, whether it is dry bulk cargo, small shipments, or some other general cargo ships, they add up to almost half of the entire ocean freight volume, that is to say, the dry bulk cargo transportation situation. Good or bad has a decisive impact on the entire shipping market .

Dry bulk carriers mainly transport bulk dry bulk cargo, such as iron ore, coal, grain, etc. , and the cargo is loaded into the hold for transportation. Oil tankers are mainly used for the transportation of crude oil or refined oil . The loading and unloading process is to pressurize crude oil or refined oil into tanks inside the ship through pipelines for transportation. Consolidation is to pack the goods into boxes of uniform size, and then code the boxes on the deck to fix the cards and reinforce them to prevent movement caused by bumps during sea transportation.

If you are seeking in terms of delivery, it is known to find freight forwarders is the cheapest and most convenient method, the major international courier agents, the volume of goods opened the agency discount account, usually find them to send prices as long as the official half or even lower, very cost-effective. Here best China freight forwarder, TJ China freight with more than 20 years of experience in freight forwarding, is committed to creating the most perfect experience for our customers, we always welcome your contact.

 

/ By TJ China Freight / International • Logistic • Shipping

Can The Import Declaration Form Be Modified After Declaration?

If you find a freight forwarder company in China to help you with all the procedures needed to export from China, and the process of filling out customs declarations due to the negligence of the personnel omitted some details, but at this time has been declared up, then whether it can still be withdrawn to amend?

The customs declaration form must be filled out in accordance with the standard text of the import and export goods declaration form announced by the customs. After the declaration, it is not allowed to modify it by itself. It must first apply for modification in accordance with the relevant provisions of the “Customs Law”.

Basis for modification

  1. After the export goods are released, if part or all of the originally declared goods are withdrawn from the customs, or the means of transport is changed due to shipping, stowage and other reasons, the certification materials for customs clearance and change of means of transport shall be submitted;
  2. If the imported or exported goods are overpacked or underpacked during loading, transportation, or storage, or are lost or short-changed due to force majeure, resulting in discrepancies between the original declared data and the actual goods, certification materials issued by the commodity inspection agency or relevant departments shall be submitted;
  3. If it is necessary to modify or revoke the data on the customs declaration form due to other customs procedures such as tax refund, customs affairs guarantee, etc., relevant materials with endorsement of customs opinions should be submitted;
  4. According to trade practice, the provisional price is first used for the transaction, and the actual settlement is based on the commodity inspection quality determination or the actual price payment method in the international market. If it is necessary to modify the declaration content, the invoice, contract, bill of lading, packing list, etc. that fully reflect the actual situation of the trade should be submitted. and truthfully provide payment vouchers related to the sale of goods and other commercial documents, written materials and electronic data that prove the truthfulness and accuracy of the declared price;
  5. The “Direct Return of Imported Goods Form” or the “Notice of Ordering Direct Return of Imported Goods” should be submitted;
  6. If the electronic data declaration is incorrect due to technical reasons such as computers and network systems, explanatory materials issued by the computer and network system operation management party shall be submitted.
  7. If the declared content needs to be amended or revoked due to errors in the operation or writing of the customs declaration personnel, the party concerned shall submit the “Import and Export Goods Declaration Form Amendment/Cancellation Form” and the following materials to the customs: (1) The contract that can prove the actual situation of the import and export goods , invoices, packing lists, bills of lading or manifests and other relevant documents and certification documents; (2) detailed descriptions; (3) other certification materials. If the customs does not find that the customs declaration personnel have evaded customs supervision, they may modify or cancel the customs declaration form. If no modification or cancellation is made, the Customs shall notify the party concerned in a timely manner and explain the reasons.

Documents to be submitted at the time of application

  1. “Import and Export Declaration Amendment / Revocation Application Form”;
  2. can prove the actual import of contracts, invoices, packing lists and other relevant documents, foreign exchange management, state tax, inspection and quarantine, banks and other relevant departments issued by the documents, taxable goods of the customs special payment, for the receipt and payment of foreign exchange and export tax rebates of import and export declarations issued by the Customs and other relevant documents.

Processing procedure

  1. The enterprise submits the above application materials to the Customs and Excise Department, the Customs and Excise Department will accept the application and conduct an audit;
  2. On-site customs audit agreed to ‘, the decision to grant the modification or revocation, the ability to make a review decision on the spot, should be issued accordingly to grant or not modify, revoke the decision, no longer issued a “declaration of imported goods to amend/revoke the application, acceptance decision” in the Customs clearance management system to complete the operation.

Processing time limit

In addition to the decision can be made on the spot, generally within one working day to make a decision on whether to accept the Customs, the decision is made within five days from the date of acceptance of the application. Import declarations filled out to comply with the declaration of normality, authenticity, and integrity principles, in line with the relevant provisions of the Customs Law, in accordance with the Customs formal process of revision, standardize the import and export trade declaration behavior, to maintain the order of customs entry and exit.

/ By TJ China Freight / Logistic • Moving • sea freight forwarder • Shipping

Learn Some Basic Tips About Shipping Cargo

Different goods often use different shipment matters are also different freight way, together with learning all of those!

Bulk and project cargo freight terminals

In contrast to the specific requirements of container and intermodal terminals, bulk cargo is characterised by non-standard nature and size variations, requiring high levels of resources at the terminal and transport end, open or closed storage, vessel services and terminal transfers, as well as specialized handling equipment requiring heavy lift capacity where necessary.

These can include temporary or permanent ship offloading facilities (MOLF) for nuclear power stations, temporary heavy lift terminals for offloading turbines for new conventional power stations in remote areas, fabrication, assembly, foundation loading, turbine and offshore substation fabrication, and offshore substations for offshore wind.

Using a full container is often the most cost-effective way if you have the volume of cargo to accommodate a full container. We support FCL ocean freight and help you save a lot of cost.

Container terminals

In the international container shipping industry it is vital to remain competitive and regularly upgrade facilities to maximize storage capacity and reduce container handling costs.  Multimodal transport is the new way of moving freight in recent years.

Intermodal Cargo Terminals

Intermodal freight transport involves multiple modes of transport, including rail, ship and truck, in the course of container transport, without the need to unpack containers. By reducing the volume of cargo handled, we reduce the potential risk of damage and loss of cargo, while also increasing safety and speeding up the movement of cargo. More and more shippers are accepting this mode of transport for their goods.

Increasingly, however, the challenge is that port facility developers need efficient and scalable terminal layouts, while intermodal transport developers need sophisticated logistics and operational improvements to accommodate the seamless and rapid transfer of cargo between different modes of transport. The logistics of liquids often involve further considerations see.

Dry and liquid bulk terminals

Dry and liquid bulk materials have specific handling requirements and pre-determining the transport and storage of potential cargoes is part of the scope of the solution. These types of transport remain important as fuels, petrochemicals, aggregates, grains and other commodities require terminal pipelines or conveyors to and from ships.

At the same time, land-based transport and storage equipment for ship handling varies considerably and may even require highly customised solutions for specific cargoes. This includes the customized electromechanical services often required for individual types of bulk berth configuration, as well as handling incoming bulk cargo from trains and trucks, port storage, reclamation and conveying systems for ship loading, port berths, quays, ship handling, and navigation.

If you have no idea about your shipping type, feel free to send an inquiry about details. The most professional China freight forwarder team of TJ  team will arrange your cargo better at a lower price.

/ By TJ China Freight / Logistic • Moving • sea freight forwarder • Shipping • Warehouse

2022 Latest Freight Forwarding Guide

What is a freight forwarder?

Freight forwarder, literally short for freight forwarder, is an international freight forwarder. In terms of job content, it is the acceptance of a client’s commitment to complete a particular aspect of the transport of goods or a link related to it, and any work involved in this area can be done directly or indirectly by finding a freight forwarder to save capital. Depending on the goods there are also overseas agents. A freight forwarder is a general term for the business of providing various transport services in the field of circulation specifically for those who demand and supply capacity for the transport of goods. They serve the whole society and act as a bridge and link between cargo owners and capacity providers, China is one of the biggest importing and exporting markets, and a professional China freight forwarder will build a strong relationship between suppliers and clients.

Mode of transport

  1. Ocean Freight Forwarding

Refers to the international freight forwarding agent that provides waterborne cargo transportation services and related services. It can be specifically divided into two types of ocean freight forwarding and river freight forwarding.

2、Air freight forwarding

Refers to the international freight forwarder who provides air cargo transportation and related services.

3、Land transport agency

Refers to the provision of road, rail, pipeline transport and other cargo transportation services and related services of freight forwarding.

4、Intermodal Transport Agency

Refers to the international freight forwarder who provides cargo transportation services such as road, rail, and pipeline transportation and related services. This kind of agent can be further divided into sea-air intermodal transport agent, sea-rail intermodal transport agent, air-rail intermodal transport agent and other types.

As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers. Despite this, there are also some caveats to be aware of before diving in with a forwarder service. Below are a few of the advantages and disadvantages of freight forwarding.

Advantages of Freight Forwarders

  1. Freight forwarder services offer competitive pricing based on services needed by a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
  2. Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of its shipment.
  3. Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
  4. One of the main advantages of a freight forwarder is their ability to offer services relating to trade. Some services include documentation, bank paperwork, cargo insurance, and inventory management.

Potential Disadvantages of Freight Forwarders

  1.  Often, freight forwarding services aren’t the operators of the transportation moving the cargo. For this reason, their influence on what happens on board the ship, rail car, truck or airplane is minimal. Additionally, their participation in the transportation steps is typically completely hands-off.
  2. If you perform all documentation and forwarding, your costs are controllable. But, with a freight forwarder, there is no way to know what kind of service markup the forwarder is adding. A company might charge $2,500 for land transportation to a destination. Conversely, a freight forwarder can state the price as $5,500 and skim the $3,000 markup off the top.
  3. Product loss is a hard reality of some shipping processes. Putting trust in a freight forwarder to handle all shipping can lead to a loss of supply chain control. If the freight forwarder is detail-oriented, things are fine. But ineptitude can wreak havoc on shipments and lead to losses.

Do You Need Freight Forwarding?

Freight forwarding is an easy way to take your business and cargo to the next level. But, there are times when it is more effective to ship directly with the shipping company. Especially when they provide the same end-to-end supply chain services as forwarders, without the markup.If you happen to be in need of one, TJ China freight is highly recommended, offering sea freight, air freight, rail freight, FCL, LCL, DDP, DDU and more. One of the top-ranked companies in China in terms of freight rating.

/ By TJ China Freight / China Freight News • International • Logistic

Incoterms Guide for China Export & Import Logistic

INCOTERMS (International Commercial Terms), also known as shipping terms, freight terms, or trade terms, are the global standard terminology and definitions used in international trade to determine which parties are responsible for the shipment at varying times during transit.

The terms can be used in 2 groups.  one group of incoterms is considered only suitable for sea freight and inland freight: FAS, FOB, CFR, and CIF.  Another group for any mode of transportation includes EXW, FCA, CPT, CIP, DAP, and DDP.

5 Common Incoterms

EXW – Ex Works

The delivery is accomplished when the buyer picks up the goods from the seller at the named place (warehouse, storage or factory etc.), the seller doesn’t clear the customs for export. Buyer controls freight from door to door. The contractual shipper on the waybill should be the buyer.

The buyer will designate one freight forwarder to arrange to pick up the shipment from the named place and undertake booking, customs declaration, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

FOB – Free on Board

The seller’s delivery is completed when the goods are across the ship’s rail. The buyer controls ocean freight routing. Fob terms require that the seller also clears the goods for export. Generally, this is the term most often used in importing from China.

The buyer will designate one freight forwarder to arrange the transportation after the shipment is loaded on board the ship and undertake booking, customs clearance, inspection, and delivery to the destination. And the relevant expenses should be at the buyer’s cost.

CFR – Cost and Freight (named port of destination)

The seller’s delivery is completed when the goods are at the port of destination across the ship’s rail. The seller has to pay for the shipment’s delivery to the destination port and declaration the customs for export.

The seller will designate one freight forwarder to arrange a trailer for transportation and undertake booking, customs declaration, inspection, and delivery to the destination. And the seller burdens the relevant expenses.

CIF – Cost, Insurance and Freight (named port of destination)

This term is the same as CFR terms, except the seller agrees to purchase marine insurance in the buyer’s interest.

DDP – Delivered Duty Paid

The seller takes responsibility for carriage, delivery of the goods at the named place, and customs clearance. And the seller should pay for the tariff and other fees.

Another group

Group E (EXW) – This is the minimum obligation for the seller. The buyer picks up the cargo from the seller at the named place.

F Group (FAS, FCA, FOB) – The seller delivers to the carrier assigned by the buyer.

C Group(CFR, CIF, CPT, CIP) – The seller arranges the shipping method but doesn’t bear the risk of being damaged after loading.

D Group(DAT, DAP, DDP) – The seller is responsible for the maximum obligation, including the risk and cost during the transportation.

When you are choosing a China freight forwarder, make sure you know these incoterms well, which is essential for cost saving.