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

Benefits of Hiring China Freight Forwarder for Your Business

When importing from China,  hiring a freight forwarder in China will make everything much easier. TJ is a professional local China freight forwarder agent providing one-stop service including shipping service,  customs broker and clearance, and door to door service, and more. Whether you are buying furniture, car parts, or household appliances, working along with TJ China freight in a long run is a crucial step to making your business become more successful. Here today, we are going to show you the benefits of hiring TJ China freight.

  1. Lower Rates

Price will always be the first reason when you choose an agent. The lower labor cost, lower exchange rate, lower expenses, and other factors, make Chinese forwarders’ charges much cheaper, not only the shipping rates but also in other handling fees. The situation here allows them to work out the best pricing based on your specific logistics needs. And this translates to bigger profit margins for buyers or can be able to sell at more competitive prices. Please note that most international freight forwarders with operations in China will use a local logistics or forwarding company because of their lower costs and local knowledge, which means the shipping agents in your country cannot handle China shipments directly.

China sea freight forwarder
Sea Freight

  1. Flexible Logistic Solution

For TJ China Freight, it is much easier for us to adjust the operation to suit the client’s needs better and handle the shipment in a more proper way. Multinational cargo forwarders are stuck with using their own overseas office to move your shipments, which sometimes is not the best option because their allied office may not have the expertise that’s just right for you. This means they do not have the ability to switch service providers or improve their level of service if there is a problem. You’d better find the one that big enough to manage all your shipping needs, and small enough to care about your cargo. TJ China Freight is a good partner, and we can provide you with a more cost-effective solution as you expected. Sea freight, air freight, rail freight and complex. You can contact us for a quick quote.

  1. Customized Service

Usually, there will be one or two individuals communicating with you, and a professional team will manage your entire logistic operation. One-to-one service will help improve the efficiency of cooperation, and they are more familiar with your operation and your needs. They can also empathize with your daily stresses as you are not just a number for them and can pay more attention to your problems and come up with a solution quickly.

  1. Professional & Reliable

Most people know that there are tons of paperwork and administration, logistics, timings, time differences, currency, language barriers and strict import, export and customs procedures to deal with, and every single country has different regulations that have to be fully understood and met by the international freight provider to ensure safe and speedy delivery of goods. Local agents in China have many more choices in selecting the best routing, carrier, and price combination. They also can more easily adapt and change their operations to cater directly to you – the importer.

Compared to a multinational, good China freight forwarder can help you solve some urgent issues faster and more efficiently, and also is more familiar with the destination countries’ regulations, which will save you lots of time and cost.

/ By tjchinafreight ivy / Shipping

Importing from China: What you need to know (Part 2)

Importing from China: What you need to know (Part 2)
Importing from China: What you need to know (Part 2)

What do you think of China's unclear regulation of imports? What is the best way to overcome this problem?

I don't think the lack of clarity in Chinese regulations actually affects importers directly. If you import shoes, you won't have any problems with Chinese regulations. Suppliers load goods into containers (for FOC Incoterm) and you won't have any problems.

Importing from China does have tax benefits. But this is already included in our supplier's FOB price. That said, we don't need to know about legislation. There are also regulations that control and monitor the products that suppliers can export. For example, shoe suppliers cannot export sofas. This is why so many manufacturing companies in China entrust their exports to other companies. All of this is done to avoid China's strict regulations. But as mentioned earlier, this has little impact on importers.

What are the main difficulties and challenges that importers face when importing from China?

For first-time importers, the lack of understanding of the entire process is undoubtedly the biggest hurdle. They don't know how to hire a shipping company or who they have to pay duties and taxes to when shipping containers.

For experienced importers, their biggest problem is often the volatility of container prices. You can agree to a price of $500, but it goes up to $2,500 on the day it ships. Right now, this is the most vexing problem.

What advice do you have for shippers importing from China?

I recommend working under FOB Incoterm. Always negotiate FOB prices to avoid surprises from CIF prices. Under FOB conditions, you can control the entire shipping process from the origin port to the warehouse. This way, you can avoid any unexpected charges and get everything organized before the import process begins.

Can China maintain its status as the world's largest producer for a long time? Are there any signs that this will change?

I have no doubt that China will continue to be the world's largest producer for quite some time. What is happening today is that the processes that took place in China ten years ago have moved to other countries where labor costs are low, just like China ten years ago.

But having said that, some processes are just moved. A large portion remains in China. I think the production of raw materials in China will continue for some time.

How can importers minimize the impact of the General Tax Rate Increase (GRI)?

Since most GRIs are in effect in the first week of the month, importers can avoid the impact of GRIs by billing in the last week. Another option is to negotiate with your forwarder to get a better price than another shipping company that is not affected by GRI.

In terms of technology, what are the main opportunities for imports from China? What are the main advantages of using technology to book ocean freight?

Find suppliers through the Alibaba platform, new payment methods with companies like Transfermate, container tracking, and door-to-door services with companies like TJ chinafreight. Technology has definitely made life easier for importers.

In your opinion, which markets in China currently offer the greatest potential and opportunities for exporters?

I am not an expert on exporting to China. But every time I travel to China, I always try to find out what the Chinese are looking for.

I talk to people in my China office and they always tell me the same thing. Health and quality of life are the top concerns for Chinese people. Being able to feed a family is one of them, especially after the tainted baby milk incident. Pollution is also a big problem in China. That said, anything that offers a solution or can improve the quality of life in China is always a huge business opportunity.

As always, luxury. international well-known brand. The Chinese middle class is willing to pay higher prices for quality European products than for local Chinese products.

/ By tjchinafreight ivy / Shipping

What does China export?

What does China export?
What does China export?

Made in China. Much has been done about this phrase, its origin simply indicates the origin of the production of a certain commodity. Today, it is no longer just about international trade. As a label, Made in China can sometimes subtly indicate the quality of goods or low labor costs. In popular culture, it's even been made into a song.

For many countries, this label is a legal requirement for all products imported by sea or air and sold within their borders. Given that China is the world's largest exporter, it's no surprise that many items you encounter in your lifetime carry this label.

What does China export?

Machines such as computers, broadcasting equipment and telephones make up the bulk of China's exports—more than 40 percent of its total. This is followed by textiles, metals and chemical products.

Below is a list of the most exported products from China:

1. Machines (43%)

Computers (6.6%)

Broadcast equipment (5.6%)

Telephone (4.1%)

2. Textiles (12%)

Women's sweaters, suits, etc.

3. Metals (7.3%)

Steel bars, iron structures, etc.

4. Chemical products (4.6%)

Pesticides, fertilizers, antibiotics, etc.

5. Transportation (4.5%)

Auto parts, passenger and cargo ships, motorcycles, etc.

6. Plastics and rubber (3.9%)

Rubber tires, plastic household items, etc.
Overall, China's top 10 exports accounted for more than two-thirds of its total global shipments. China's total exports accounted for 7.46% of the world's total - indicating the export advantage of the Asian giants.

Where does China export to?

About one-fifth of Chinese exports end up in the United States. China's top five export partners are:

  • United States (19%)
  • Hong Kong (14%)
  • Japan (6.3%)
  • South Korea (4.6%)
  • Germany (3.2%)

Nearly half (49%) of Chinese exports remain on the continent. Its top destination in Asia is Hong Kong (14%), followed by Japan (6.3%) and South Korea (4.6%).

/ By tjchinafreight ivy / Shipping

The most important free trade area in the world

The most important free trade area in the world
The most important free trade area in the world

What is a free trade zone?

A free trade zone is a type of Special Economic Zone (SEZ), which refers to an economic zone that is exempt from trade-related charges such as duties and taxes.
In these regions, goods manufactured, stored and handled are subject to different customs preferences. They often receive relief and incentives to encourage investment.

Here is the OECD definition of a free trade area:

"Countries that generally remove tariff and non-tariff trade barriers among member countries but have no common trade policy for non-member countries"

-Organisation for Economic Co-operation and Development (OECD)

The benefits of a free trade zone include:

  • Promote trade and business opportunities
  • Reduce logistics costs
  • Reduce red tape and bureaucracy
  • Increase foreign exchange earnings
  • Create job opportunies
  • Attract investment

History of Free Trade Zones

To understand the history of free trade zones, we must look at the general category: Special Economic Zones (SEZs).
There are many different variations of the term SEZ. But they are all built for the same purpose.

The first SEZs are simply called "free zones" and are designated areas, usually adjacent to seaports, airports or between two or more countries. These started in the 1960s and started growing exponentially in the 1980s.

Today, there are more than 5,400 SEZs around the world. Of these, 1,000 were established within the past five years. Experts expect more than 500 new special economic zones to be established in the next few years.

  • North American Free Trade Agreement (NAFTA)
  • EU single market
  • African Continental Free Trade Area (AfCFTA)
  • Association of Southeast Asian Nations Free Trade Area (AFTA)
  • Special Economic Zones in China
/ By tjchinafreight ivy / Shipping

Top 5 ports in Colombia

Top 5 ports in Colombia
Top 5 ports in Colombia

The Republic of Colombia occupies mostly South American territory, but also has some territory in North America. It has some of the finest emeralds and tropical landscapes in the world and is home to some of the most lucrative ports on the Caribbean and Pacific coasts. These ports facilitate trade and commerce with North American and other Pacific nations, as well as their South American counterparts. Colombia is the only country in South America with access to the Pacific and Caribbean trade routes.

Here are the top five ports in Colombia:

Puerto barranquilla

Located near the mouth of the Magdalena River along Colombia's Caribbean coast, the port is one of the most modern liquid bulk facilities in the county. The Palermo Tank Terminal is located on the port premises and has a capacity of 352,000 barrels of refined oil and crude oil.

The terminal has two storage tanks, infrastructure for easy loading and unloading of bulk liquids, and a dock for handling ships. The long-term vision for the port is to hold 2.5 million barrels of liquid substances, from bitumen to petrochemicals and vegetable oils.

Port of cartagena

Locally known as the Port of Cartagena, but officially it is called the Port of Cartagena. It is home to large cruise ships that transport passengers to the city of Cartagena, as well as larger ships carrying general cargo and other import and export cargo. As the fourth largest port in Colombia, it has the capacity to handle 80% of the region's imports and 60% of its exports. The agricultural activity in Colombia's Murcia region is intensive, providing more than 2.5 billion euros worth of fruits and vegetables, most of which pass through this port.

The port has two main terminals, 1.5 miles from each other by sea and 5 kilometers by road. The marinas are Escombreras and Cartagena. Because the port is a deep-water bay and is not affected by wind, currents are weak. It has the Compas terminal in the El Bosque district and the contecar terminal in the Ceballos district. Both handle dry bulk, liquid bulk, containers, breakbulk and some cruise traffic.

Puerto santa marta

The port is operated by the Santa Marta Ports Association and is located on Colombia's Caribbean coast. It consists of seven terminals and provides rail services to facilitate the loading and unloading of goods through the port. It is Colombia's main port on the maritime trade route to the Intra-Atlantic.

The port handles many types of cargo, from palm oil to fuel and carbon as well as grains and containers. One of the port's greatest strengths is its ability to cater to post-Panamax carriers with high cubic cargo. In terms of bulk cargoes from Colombia, the port has the third highest traffic volume.

Puerto tumaco

The Port of Tumaco is located in the city of Tumaco on the Pacific coast. The premises have berthing facilities to handle dry and liquid bulk cargoes passing through the port. It also has a marine terminal that handles the country's exported crude oil. The port of Tumaco is well connected by road and plane to the surrounding area, including the Colombian capital, Bogota and the western city of Cali.

Bananas grown in the Pacific lowlands enter the port for export, but are mainly used as a terminal for crude oil from the Putamayo field, about 160 kilometers southeast of the port. It is also a major fishing port promoting the export of tuna and sardines. The nearby airport makes it a popular port for importing delicate, time-sensitive goods and products as they reach the hinterland faster.

Puerto buenaventura

This is a seaport in front of the Columbia Pacific Ocean. It also happens to be the country's main port of call in the Pacific region. The port, also located in Tumaco, is a veritable "good luck" that has been a boon for the Colombian economy due to the volume of bulk cargoes it handles. The Port of Buenaventura has direct trade routes to Asian markets, which are starting to become as lucrative as the U.S. and European markets.

The port generates 27% of Colombia's total customs revenue. It is able to attract investment and trade because of its proximity to Mexico and Chile, and access to markets in Southeast Asia and beyond. Considering the city was once one of the deadliest due to the widespread cocaine wars in the port, the rebranding of Buenaventura into a growing center of trade and commerce is impressive.

/ By tjchinafreight ivy / Shipping

Shipping Solutions for Countertop Manufacturers

 

Shipping Solutions for Countertop Manufacturers
Shipping Solutions for Countertop Manufacturers

With more than 1,500 countertop manufacturers in the U.S., the fragmented nature of the market leaves manufacturers without significant resources or leverage when it comes to shipping. Also, the nature of the product, especially the long size, makes shipping unattractive for many carriers, resulting in surcharges and penalty rates.

Countertop Manufacturer Industry Definition

Countertop manufacturing primarily cuts, shapes and finishes kitchen and bathroom countertops. Countertops are made from a variety of materials including: wood, plastic laminate, stone, faux marble, ceramic and concrete. The industry does not include countertops constructed on site by building contractors.

Key Industry Insights:

  • The market size was over $89 billion in 2019 and is expected to grow at an annual rate of approximately 2.8% to over $111 billion by 2027.
  • Material innovations, namely various artificial stone and artificial marble products, and the use of recycled materials such as glass are exploding. Unique, architecturally significant countertops are driving higher prices and profits for manufacturers.
  • Innovations in manufacturing technology, especially 3D printing, have simultaneously produced unique one-off products, reducing manufacturing labor, shortening manufacturing time and increasing profits.
  • Growing interest and investment in refurbishment and remodeling is driving the industry's growth above new construction. New construction is expected to remain strong due to the imbalance between U.S. housing starts and households over the past five years.
  • Durable laminate countertops make up the largest portion of installed countertops in the U.S., and demand will be strong even as engineered and natural stone grow in popularity.
  • Concerns about natural radiation (i.e. radon) from natural granite and its high purchase price will hinder the growth of engineered and farmed products.
  • Residential demand will continue to be the primary use market.

Logistics considerations for countertop manufacturing

Shipping costs are serious business for many countertop manufacturers. Smart, growing countertop manufacturers are using experts to help them gain a competitive advantage in shipping.

Shipping countertops presents some unique challenges:

  • Size - Most countertops are long and narrow. Small package shippers such as UPS and Fedex limit the total size of packages they will handle and charge exorbitant surcharges before rejecting package sizes. For the past few years, less-than-truckload (less-than-truckload) carriers have been using surcharges to block shipments over 8 feet.
  • Packaging - Packaging countertops to withstand shipping environments require proper design and judicious use of packaging materials
  • Weight/Density - Depending on the material, the countertop may or may not be heavy. But because of their size, countertops rarely fit in the cargo configuration most carriers need.
  • The destination-home delivery trend is driving the need for more and more countertop deliveries directly to the installation site. For trucking companies, these mostly "one-off" residential deliveries are less efficient than comprehensive deliveries to stores or warehouses.
  • Damaged - Countertops, especially when packaged improperly, are prone to damage, resulting in unhappy customers, delays and additional costs.
/ By tjchinafreight ivy / Shipping

The busiest seaport in the world

The busiest seaport in the world
The busiest seaport in the world

The busiest seaport in the world

A common question we see in the shipping world is "What is the busiest seaport in the world?" The size and scope of the shipping industry is difficult to understand, which is why working with experts can be so helpful for businesses. At TJ chinafreight, we work with various manufacturing and other companies to meet their transportation and logistics needs.

Currently, the busiest seaport in the world is Shanghai Port (according to Marine Insight). The name is based on the daily container flow through the port, meaning the biggest ports are not always the busiest. The port is located in the Yangtze River and the East China Sea with convenient transportation and consists of a deep sea port and an inland river port. The total area is 1,397.5 square miles! Shanghai beat Singapore to become the world's busiest port with 37.1 million TEUs of cargo in 2019 and is considered the world's fastest-growing economy. About 2,000 container ships depart from Shanghai Port every month.

Learn about the harbour

A seaport is the place of origin, transshipment or arrival of seaborne cargo. Simply put, maritime transport is the movement of goods, raw materials and commodities across the world's oceans and waterways. More than 90% of the world's goods are transported by sea. Without shipping, the world economy would come to a screeching halt—without electronics, manufacturers without raw materials, and store shelves half empty.

Ships are one of the oldest forms of transportation. Today, ships still sail through the former sea trade routes. Interested in learning more? TJ chinafreight would love to hear from you!

/ By tjchinafreight ivy / Shipping

What is dual brokerage?

What is dual brokerage?
What is dual brokerage?

What is dual brokerage?

Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. (i.e. after accepting a proxy load, if the broker re-proxies the load to another carrier, this is double proxying.) That's not what a broker should do.

Some background

Brokers, carriers and freight forwarders are the three recognized forms of transportation providers. "Dispatch services" are new to the market and try to circumvent the rules by acting as a broker, carrier or both...without abiding by the rules and regulations of either party. This means that shippers have no legal protection when it comes to delivery services.

As part of the regulations, shippers should know who they have contracted for goods and whether they have contracted with a broker, carrier or freight forwarder.

It is generally accepted that an entity (company) should be one of three: a broker, a carrier or a freight forwarder. However, it is common practice for carriers (especially) to accept more loads than the trucks they own and then "lay off" the extra loads to other carriers. These carriers may or may not have broker authorization...but in either case act like a broker (and re-broker) without disclosing (i.e. act like a co-broker).

Companies that refer freight are notorious for "disappearing" and don't pay the carrier or break up or hold the freight hostage until the shipper (broker) pays. In general...if you don't follow the rules you are doing it on purpose and for a reason...

Going back to dual brokerage...this practice has many risks and relatively no benefits. When one broker hands over their cargo to another, they no longer know who is actually handling the cargo, or if they are using the proper licenses and insurance, nor can they track the cargo.

While technically legal, dual brokerage is a contentious issue in the shipping world. (Side note: It may be illegal if a broker accepts payment for an agent shipment, forwards it to another shipping company, and then does not pay the carrier after the shipment is shipped.)

Freight brokers can avoid double brokers by not "biting too much". In other words, if you can't tow the goods yourself, don't say you can tow the goods. If you cannot handle shipping and need to pass it on to another broker, you must do so with the client's consent.

Dual brokerage should not be confused with joint brokerage, which can be a beneficial practice. Co-brokering is when a freight broker cooperates with another broker to meet demand - a collaboration that is known to all parties. Ultimately, co-broking is there to help clients. Sometimes brokers have a specialized niche, so it makes sense to co-broker with the company instead of rejecting client requests.

/ By tjchinafreight ivy / Shipping

Deliver your product on time

Deliver your product on time
Deliver your product on time

How to help ensure products are delivered on time

1. Understand the reasons for poor on-time performance

There are a variety of factors that can affect shipping times, both within and outside of your control. Everything from road construction to poor planning can lead to delays. As the shipping industry becomes more volatile, external risks increase. That's why it's important to work with a logistics professional to help ensure everything within your control is properly managed. For example, understanding how and when to implement short-term shipping fixes and how to handle the supply chain is critical to staying on track. TJ chinafreight can help!

2. Learn about transportation

There are many ways to ship products from point A to point B. In order to deliver your product on time, it's important to understand what's going on between these points. Truck loading, air freight, trains, cargo ships… the list of options available is extensive. Knowing what to use and when to use it is the key to maximizing efficiency. It is also helpful to understand the strengths and weaknesses of different industries and how they work together.

3. Simplify your supply chain

Improving supply chains involves identifying weaknesses and identifying alternatives. For example, complex supply chains tend to drive higher levels of customization and complexity among manufacturing partners. By diversifying your customer base, you won't be as interdependent as other companies. More successful supply chain tips can be found here.

4. Communicate with your logistics broker

Your LTL shipping partner is here to help you, but they won't be able to help unless they know the full story. Hiring an LTL freight brokerage is a smart move for your shipping needs, especially if you are on the same page as the broker. At TJ chinafreight, we strive to get things right the first time.

Ready to switch? We would love to work with you!

/ By tjchinafreight ivy / Shipping

What to expect from supply chains in 2022

What to expect from supply chains in 2022
What to expect from supply chains in 2022

As far as supply chains are concerned, we are still "in" the midst of a pandemic. Supply chains will continue through 2022 amid the pandemic. The drivers of the surge in demand, the bullwhip effect, labor shortages, political agendas and elections, Fed policy, and oh yes… the rest of the Covid infection are all interconnected. Supply chain expectations in 2022 are a complex issue!

For 2022, I expect:

  • Economic growth will continue, but at a slower pace to 2-3%
  • By 2022, macro-level transport networks will "catch up" and normalize
  • Less-than-truckload carriers are pushing above-average general rate increases while adjusting other tariff rules to discourage certain shipments, such as over-lengths. At the same time, carriers will add trucks and drivers wherever possible, creating a potentially competitive rate environment in 2023 or when the economy slows.
  • FTL operators will see rate peaks before EOY in 2021. Higher contract rates introduced during 2021 will keep prices above multi-year averages, but rolling stock growth is expected to soften by EOY 2022 as new trucks are delivered.
  • Small-package operators, already close to a monopoly, will see astonishing universal rate increases in 2022 after 2021. They are building the last mile network of the future and increasing profits for shareholders.
  • Ocean carriers as a group have been the most disciplined during the pandemic, and they will continue to discipline themselves in 2022 by limiting volumes early and often raising prices. They just made too much money and it wasn't worth it. However, container traffic will normalize by mid-2022, which will allow restrictions to be cleared and return transit times to be more reliable. Don't expect interest rates to return to pre-pandemic levels...forever.