/ By tjchinafreight ivy / Shipping

Summary of shipping precautions for exporting to India!

India is the largest country in the South Asian subcontinent, with many domestic ports, including 12 major ports, including Mumbai, Calcutta, Chennai (formerly Madras), Cochin, and Goa, which undertake 3/4 of the cargo volume. Among them, Mumbai Port is the largest port, and its shipping capacity ranks 18th in the world.
China Shipping to Kolkata Port in India needs to transit through other ports, including Colombo / Visakhapatnam / Krishnapatnam / Port Klang / Singapore and other ports.

01 Document requirements

The import and export of India by sea involves the following documents:

(1) Signed invoice
(2) packing list
(3) Ocean Bill of Lading or Bill of Lading / Air Waybill
(4) The completed GATT declaration form
(5) Declaration form of the importer or its customs broker
(6) Approval document (provided when required)
(7) Letter of credit/bank draft (provided when required)
(8) Insurance documents
(9) Import license
(10) Industry license (provided when required)
(11) Laboratory report (provided when the goods are chemicals)
(12) Temporary tax exemption order
(13) Original copy of Customs Exemption Right Certificate (DEEC) / Tax Rebate and Tax Deduction Right Certificate (DEPB)
(14) Catalogue, detailed technical specifications, and relevant documents (provided when the goods are machinery equipment, machinery equipment parts or chemicals)
(15) Single price of mechanical equipment parts
(16) Certificate of Origin (provided when preferential tariff rates apply)
(17) No Commission Statement

02 Supplementary requirements for documents

Indian Customs Service has issued Proclamation No. 33/2018 which stipulates that from April 1, 2018, importers must ensure that their exporters are informed of the following essential details abroad in order to incorporate these details into booking such shipments:
(1) Importer's Import and Export Code (IEC)
(2) GST Importer's Identification Number (GSTIN)
(3) Importer's official email ID (for shipping routes and customs communications)

This notification is issued due to consignment of hazardous waste, other waste or restricted items being imported in the name of certain importers and still not cleared. It is therefore essential to record the importer's basic information on the bill of lading so that these details can be used to determine DPD stacking and various other uses.

03Tariff Policy

From July 1, 2017, India will consolidate its various local service taxes into the Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The GST charge will be 18% of the import and export Indian service charges, including local charges such as terminal handling charges, inland transportation charges, etc.

On September 26, 2018, the Indian government abruptly announced an increase in import duties on 19 "non-essential goods" to reduce the widening current account deficit. The tariff adjustment raises tariffs on imported goods such as air conditioners, refrigerators, washing machines, footwear, speakers, jewelry, some plastics, luggage and aviation turbine fuel.

The Ministry of Finance of India has notified that import duties on 17 commodities will be increased from October 12, 2018. The 17 items include smart watches, telecommunications equipment and more. The notice showed that tariffs on smartwatches and telecommunications equipment were raised to 20 percent from the current 10 percent.

04Customs regulations

First of all, all goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, it is necessary to dig out the box at the port or pay a high fee for changing the manifest before transshipment to the inland.
Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, the customs will issue a notice of delivery to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage in customs.

05Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill in the Bill of Entry in quadruplicate. The first and second pages are retained by the customs, the third page is retained by the importer, and the fourth page is retained by the bank where the importer pays the tax. Otherwise, high detention fees must be paid to the port authority or airport authority.
If the goods are declared through the Electronic Data Interchange (EDI) system, there is no need to fill in the paper "Import Declaration Form", but the detailed information required by the customs to process the goods clearance application needs to be entered in the computer system, and the EDI system will automatically generate the "Import Declaration Form". Customs Declaration.

06Return regulations

Indian Customs stipulates that the exporter needs to provide the original importer's certificate of abandonment of the goods, the relevant delivery certificate and the exporter's request for return letters and telegrams, and entrust the shipping agent to complete the return procedures after paying the port storage fees, agency fees and other reasonable fees.
If the importer is unwilling to issue the exporter with the certificate of rejection of the goods, the exporter can rely on the letter of the importer's refusal to pay or take delivery or the letter of the importer's non-payment redemption provided by the bank or the shipping agent, the relevant delivery certificate and the seller's request. The letter and telegram for the return of the goods shall be entrusted to the shipping agent to directly submit the return request to the relevant Indian port customs and go through the relevant procedures.

/ By tjchinafreight ivy / Shipping

Introduction to container freight terminology, freight forwarding and foreign trade notices

Container

A sea container (also known as a container, freight container, intermodal container, ISO container, hi-cube container, box, conex case, and sea tank) is a steel container that can be moved repeatedly within a product for safe and efficient movement Use an intermodal freight system.
Container shipping comes in many different sizes and options, including specialty options such as hanging garment containers, half-height containers, bulk shift containers and tanks. While these all have their uses, they are very niche.

Container leasing
The container leasing market has been fast-growing over the years. Today, around 55 % of the global container fleet is owned by leasing companies. Making container leasing a force to be reckoned with.
Are you considering leasing containers instead of buying? In that case, keep reading. We’ll tell you all you need to know about the different types of container leasing. As well as weigh the pros and cons of buying containers vs leasing them.

Container terminal
In container transportation, the specific handling department for the exchange and storage of boxes or cargoes. It authorizes the carrier or its agent to carry out the following business:
(1) Exchange and storage of FCL shipments.
(2) Those who have a container freight station shall handle the handover of LCL goods.
(3) Arranging the berthing of container ships, loading and unloading containers, and preparing stowage plans for each voyage.
(4) Handle the compilation and signature of relevant shipping documents.
(5) Prepare and sign the relevant documents for the entry, exit and circulation of the container using the means of transport.
(6) Handle the inspection and maintenance of containers, vehicles, loading and unloading tools, as well as cleaning and fumigation of empty containers.
(7) Send and receive, store and keep empty boxes.
(8) Arrange the stacking of empty boxes and heavy boxes in the yard, and prepare a site allocation plan.
(9) Other related business work. Container loading and unloading areas are generally composed of dedicated docks, frontiers, yards, freight stations, command towers, repair departments, gates and offices. Sometimes the storage yard or freight station can be extended to the transfer station of 5~15 kilometers in the urban area.

Container front yard (marshalling yard)
In front of the container terminal, in order to speed up the loading and unloading of ships, the container is temporarily stacked. Its function is: before the container ship arrives at the port, the export containers are neatly stacked in a planned and orderly manner according to the stowage requirements, and the imported containers are temporarily stacked in front of the wharf during unloading to speed up the loading and unloading operations of the ship.

sea freight

Container yard
A place where heavy or empty containers are handed over, kept and stacked. In some countries, container yards are not divided into front yards or rear yards, which are collectively referred to as yards. The container rear yard is an integral part of the container handling area. It is the place where the FCL of the container transportation "on-site" handover method is handed over (actually, the handover is carried out at the "gateway" of the container unloading area).

Empty container yard (van pool)
A site dedicated to the collection, storage, storage or handover of empty containers. It is specially set up when the container handling area or the transfer station yard is insufficient. This kind of yard does not handle heavy box or cargo handover. It can be operated independently, or it can be set up outside the area by the container handling area. Some capitalist countries, operating such empty container yards, must declare to the shipping association.

Container freight station
The place where the ship and cargo parties handle the handover for the packing and unpacking of the LCL cargo. The carrier can only entrust the operator of one container freight station in a port or inland city. It handles the following main business on behalf of the carrier:
(1) Tally and handover of LCL cargo.
(2) If there is any abnormality in the inspection of the appearance of the goods, an annotation shall be processed.
(3) The stowage and packing of the LCL cargo.
(4) Unpacking and storage of imported unpacked goods.
(5) Seal and issue a station receipt on behalf of the carrier.
(6) Handle various documents and preparations.

The maximum compensation amount that the carrier should bear in the event of cargo damage during container transportation. Limitation of liability for LCL shipments is the same as for conventional shipments. Compensation for FCL is based on some current international precedents. If the number of pieces of goods in the box is not listed on the bill of lading, each box is used as a claim calculation unit. If the number of pieces in the box is listed on the bill of lading, it is still calculated according to the number of pieces. If the damage and loss of the goods are not carried out by sea, but occurred during inland transportation, the maximum compensation amount for land transportation shall be handled. If the container is owned or provided by the shipper, in the event of loss or damage, the responsibility for the loss or damage is indeed the responsibility of the carrier, and it should also be regarded as a claim calculation unit.

/ By tjchinafreight ivy / Shipping

Container Rental Guide

Why rent a container?

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

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

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

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

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

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

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

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

/ By tjchinafreight ivy / Shipping

China-Thailand Customs Sign AEO Mutual Recognition Action Plan

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

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

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

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

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

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

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

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

/ By tjchinafreight ivy / Shipping

Biden administration re-exempts 352 tariffs on Chinese goods

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

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

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

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

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

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

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

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

/ By tjchinafreight ivy / Shipping

These common Chinese herbal medicines are still dangerous chemicals!

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

Dangerous chemicals in common Chinese herbal medicines

1. Borneol

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

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

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

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

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

Customs supervision requirements

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

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

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

/ By tjchinafreight ivy / Shipping

Do you know all these surcharges for shipping?

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

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

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

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

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

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

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

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

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

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

/ By tjchinafreight ivy / Shipping

VLCC again records its worst deal ever

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

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

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

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

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

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

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

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

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

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

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

/ By TJ China Freight / Shipping

Container freight rates trends

The spot freight rates for containers from Asia to Europe and from Asia to the United States fell further from record highs last week. However, it is expected to remain high for a period of time.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

There has been a sharp drop during the Chinese Lunar New Year holiday, but the rate is expected to remain high

Jeremy Nixon, CEO of Japanese liner company Ocean Network Express (ONE), believes that the freight market will not stabilize before the middle of this year.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

The Lowe's Daily said that in the absence of a sharp decline in traditional freight volumes after the Chinese New Year, the spot freight rates for Asia-Europe and Trans-Pacific trade are still at historical highs; the spot exchange rate flexibility during the Spring Festival shows that the factors that support price increases are still Need to be alleviated. Cargo backlogs, port congestion, equipment shortages and continued high throughput mean shippers are still being charged premiums on the main trade routes.

The Drewry Composite Index shows that although it has fallen 2.2% in the past week, it is still 232.6% higher than a year ago. The year-to-date WCI average composite index assessed by Drewry is US$5,231 per 40-foot container, which is US$3539 higher than the five-year average of US$1,692 per 40-foot container.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

The Drewry Composite Container Index fell 2.2% (US$117) to US$5121.04 per 40-foot container.

The freight from Shanghai to Rotterdam dropped by US$286, reaching US$8188/FEU;

The freight from Shanghai to Los Angeles dropped by 130 USD, reaching 4,261 USD/FEU;

The freight rate of the 40-foot container from Shanghai to Genoa fell by US$106 to US$8,505;

The freight from Shanghai to New York rose by 23 dollars to reach 6,651 dollars/FEU.

Drewry expects rates to stabilize relatively this week.

The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange closed at 2152.91 points, down 4.1% from 2245.32 points last week. Among the 21 routes, the freight index of 5 routes increased, and the freight index of 16 routes decreased. Among the major ports along the "Maritime Silk Road", the freight index of 17 ports fell.

The freight rate of the European-German route dropped as a whole, 3.9% lower than the previous week's European route; the eastern route dropped 4.2%; and the western route dropped 4.9%. While the North American route remained high, the US East route rose 2.5% from last week; the US West route rose 0.2% from last week.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

European-German route: In view of the fact that the transportation demand is still recovering after the holiday, the goods hoarded before the holiday have basically been shipped, and the booking price of the European-German route has dropped overall. According to Freightos' recent Baltic Index (FBX), the price of 40-foot containers from Asia to Northern Europe fell 4% a week to US$8004; according to FBX data, in the Far East to Europe transaction, the spot freight rate was as high as US$8,306. /FEU, but fell by US$432 over the weekend to US$7,874/FEU (daily index).

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

But for Mediterranean ports , the average price dropped by only US$37 last week to US$7,926 per 40 feet.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high



Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Moreover, many shippers are still obliged to pay additional fees to ensure the availability of containers, and for British ports, a "port fee" of US$2,000 is usually added. A year ago, the FBX index showed that the freight rates per 40 feet in the Nordic and Mediterranean regions were US$1,533 and US$2,130 respectively.

Lory Cheung, an overseas marketing expert at China-based MRF International Forwarding, said that shipping companies must “do everything they can to seize every opportunity” because the shipping market will eventually return to normal. He pointed out: "At present, carriers seem to be more willing to sign long-term contracts with BCO rather than freight forwarders," which shows that shipping companies are working hard to lock the contract price at the highest possible level to avoid the impact of spot market fluctuations.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

In fact, the high inflation rate in current transactions is forcing shippers to cancel orders for low-value products. A British non-vessel carrier (NVOCC) stated that he has noticed that a garden furniture importer’s bookings from China have dropped by a third this year.

North American routes: The market's freight volume has recovered faster than in previous years, and the route's loading rate remains high. According to the Freeghtos Baltic Index, since the end of February, freight rates outside of Asia have decreased, and the spot freight rate for Pacific Eastbound transactions has dropped from a high of US$4922/FEU on February 26 to US$4197 on March 4. /FEU. However, by March 5, the spot freight rate soared again to US$4,709/FEU. At the same time, in the Trans-Pacific region, the West Coast portion of FBX in the United States fell 11% last week to $4,369 per 40 feet. Freightos expects this decline to be temporary, given the strong demand for trade.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

The FBX index for US East Coast ports fell 3% to $5659/FEU.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Freightos research director Judah Levine said: "Although the rates are falling, they may remain very high for a period of time." "As the US retail inventory level is still very low, it may take until the end of this year to restore normal inventory."

According to the latest data from the signal platform of the Port of Los Angeles, the volume of inbound containers this week reached 175,300 TEU, an increase of 505.56% over the same period last year. There are 17 container ships berthing at anchorages, and 10 container ships waiting to be anchored outside the port, with an average waiting time of 7.5 days.

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Container freight rates have fallen sharply for the first time since the beginning of the epidemic, but are expected to remain high

Last week, even if the freight rates of the two major trade routes from China to the United States and Europe fell, at least 35 to 40 ships were anchored on the west coast of the United States due to congestion in US ports continuing to spread to ports outside North America. More than twenty container ships waited for two weeks to berth. These container ships were loaded with exercise bikes, electronics and other highly sought-after imported goods. Los Angeles Port Director Gene Seroka said at a recent board meeting: "The backlog is expected to continue until midsummer."

Congestion in Southern California, dozens of container ships waiting to berth

Jon Monroe of Worldwide Logistics said that the traffic congestion in the Los Angeles/Long Beach area was mainly caused by the layoff of more than 700 skilled dock workers due to Covid-19 infection. "Due to the complexity of the operating models of multiple terminals in Southern California ports, this situation is more difficult to resolve quickly. Of course, in addition to this, 45% to 50% of imported goods in the United States are transported through the ports of Los Angeles and Long Beach." He added , The shipping terminal has insufficient storage space, the truck queue at the terminal is also very long, and the chassis continues to be short.

At the same time, Jon Monroe of Jon Monroe Consulting in Washington State suggested that there is evidence that the strong momentum of trade may be maintained until the Chinese New Year in 2022.

The market is unprecedentedly strong, which is bad news for shippers who are struggling to sign new annual contracts from Asia to the United States. "Many people I have spoken to have stated that this will be a fast negotiation," Jon Monroe said. "The question this year is more about'how to ship the product?' rather than'how much is the cost?'"

At present, there is a 40% unbalanced gap in containers in North America. This means that for every 10 containers that arrive, only 4 return, and 6 remain at the arrival port. The average monthly trade between China and the United States is 900,000 TEU, and there is indeed a huge absolute imbalance in containers. In addition, according to the data of consulting company Descartes Datamyne, the current shipment volume is at the highest level in history. In the first quarter of this year, sales increased by 23.3% over the same period last year.

The container shipping crisis has affected various business areas in different ways. For example, the transportation of high-value commodities such as mechanical engineering products, electronic products and computer equipment will be less affected. But for other types of goods, especially the textile industry in Asia, the increase in transportation costs has brought more serious consequences. Exporters claim that the sharp increase in freight rates has led to the closure of many low-profit textile mills. Delays and container shortages are pushing up freight rates. In Asia, delivery delays can be up to several weeks, forcing many companies to negotiate price increases with buyers.

/ By TJ China Freight / Shipping

Congestion in West America worsens!

Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

Recently, a cold wave swept the United States and quickly plunged the southern state of Texas into disaster. In this unprecedented cold wave, more than 4 million people in the United States have suffered power outages, countless power plants have been destroyed, and electricity and natural gas prices have skyrocketed. ; At present, the price of electricity in Texas has increased by more than 100 times, up to 9,000 US dollars per megawatt, and the price of natural gas has skyrocketed by more than 160 times, reaching US$500, compared with only US$3 in the past; it is jaw-dropping.

Except for Texas, which is in a serious disaster, other states in the United States are not doing well. There are about 168 million people in the United States under the threat of this cold wave. Numerous airports have been suspended. According to data from the flight monitoring website "flightaware", Dallas and Houston , Austin area airports have cancelled more than 2,000 inbound and outbound flights on the 15th . Coupled with the new crown pneumonia crisis that is still raging across the United States, the United States is really miserable.

In terms of shipping, the Southern California anchorage is full of container ships, and the congestion continues to worsen ! The latest video released by the U.S. Coast Guard provides intuitive evidence of the congestion levels in Los Angeles and the Port of Long Beach. From the picture, a large number of container ships are moored at the anchorage in San Pedro Bay, California.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring
U.S. Coast Guard aerial scene

Data shows that the historic container ship congestion in California ports has not really eased. There are currently 63 container ships in Los Angeles and Long Beach, and 32 container ships are waiting for berths at anchorages. (On February 1st, the highest record of 40 container ships anchored at anchorage)

The Port of Los Angeles announced the number of berth days for a particular container ship through its Signal platform last week. Data shows that some ships stay at anchorage and wait for almost as long as they sail across the Pacific Ocean . For example, as of last Thursday, the 6332TEU container ship "Ever Envoy" has been parked for 11 days. As of Tuesday, the 9,400TEU "MSC Romane" has been parked for 12 days. And the three container ships of 11356TEU "CMA CGM Andromeda", 8452 TEU "Ever Liven" and 4888TEU "NYK Nebula" also berthed for 11 days as of last week.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

As of the end of 2020, the number of container ships at anchor has increased to 30; since then, it has remained between 20 and 40. At the same time, the number of vessels at berths in Los Angeles and Long Beach remained at around 20 and 30. Kip Louttit, executive director of the Southern California Shipping Exchange, said: "We seem to have adapted to the new normal of about 30 container ships waiting in line every day. I don't know if this situation will continue."

As of Tuesday, the average time for ships docking in Los Angeles was 8 days , up from 7.3 days at the beginning of last week. From the information on the waiting time of ships provided by the platform from January 27th, the waiting time for ships to berth has been maintained for about one week, and the data for the last two periods has been extended to 8 days.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

　　The latest data from the Signal platform: 20 ships at anchor, with an average anchoring time of 8.0 days. There are 14 ships waiting to be pre-anchored.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

What caused the blockage? The extended berthing time of ships forced some shipping companies to cancel multiple voyages this month. This is not due to lack of cargo demand, but due to lack of available vessels to handle these services. Delays on land have also caused congestion at sea: extremely high inbound volumes and complex logistics inside and outside the port have caused delays on land. One of the challenges facing the port is the new crown virus infection of dockers and a serious shortage of labor.

Despite productivity gains last month, terminal operators at the Ports of Los Angeles and Long Beach said the ports may have to wait until the end of spring to get rid of the ship backlog and congestion that have plagued them in the past six months . The near-record number of containers will continue into the spring of this year, but the backlog of ships at the port and the fully loaded inbound containers at the terminal should disappear sometime between April and June.

The managers of SSA Marine, Yusen Terminals and Fenix ​​Marine stated that in order to alleviate the congestion in the port, two projects to be developed are necessary. First, the COVID-19 vaccine must be widely distributed among dock workers to alleviate the recent labor shortage. During the Lunar New Year holiday this month, container traffic has declined moderately, which should also enable shipping terminals to remove the backlog of fully loaded imported containers from their facilities.

"The terminals are full and there is no place to put these containers. We deliver 35% less cargo (to truck drivers) than usual," said Ed Dannick, president of SSA Containers.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

According to data from the HarborTrucking Association, the average truck stay at the terminal in January improved from 93 minutes in December to 88 minutes, but it was still much higher than the record low of 58 minutes in June. Imports peaked during the recovery period after the first wave of COVID-19 lockdown.

The backlog of ships in Long Beach, Los Angeles, is increasing unabated. According to statistics from the Marine Exchange of Southern California, there are currently 63 container ships in the Port of Long Beach in Los Angeles, of which 32 are at anchor waiting for berths and 31 are at berths.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

The latest data released by the Pacific Merchant Shipping Association (PMSA) shows that in December last year, the average container stay time at the 12 terminals of the Port of Long Beach in Los Angeles was 4.99 days. This is twice the average length of stay (approximately 2.5 days) recorded by PMSA in the first half of 2020.

“The longer the container stays at the terminal, the more serious the congestion will be. When the container piles up like a mountain, the congestion creates additional and inefficient handling requirements,” said PMSA’s government affairs manager jessicaalvarenga.

The new crown epidemic hits labor in the port

According to the Pacific Maritime Association (PMA), the West Coast port employers' Association and the International Terminal and Warehouse Union (ILWU), the new crown epidemic has severely affected the labor force along the Los Angeles-Long Beach Port. As of January 17, The International Terminal and Warehouse Union (ILWU) reported that 694 of its members tested positive. By January 25, this number jumped to 803.

PMA stated that there is a particular shortage of skilled equipment operators, who need to remove containers from trucks, and then move them into and out of the container yard, which is critical to the operation of the terminal. As a result, the joint committee of PMA and ILWU, which is responsible for allocating workers to the docks on a daily basis, cut the allocation share.

"It boils down to the labor issue at the terminal," said Scott Weiss, vice president of business development at Port Logistics Group, which has a large number of truck and warehouse operations throughout Southern California. "Containers still have bottlenecks in and out of the terminal."

The latest information released by the Signal platform of the Port of Los Angeles shows that due to the new crown epidemic, the productivity of coastal labor has decreased, which has caused ship delays and the average delay of port facilities is 8.0 days .

These ports are working with trans-Pacific shipping companies to reduce Southern California's load until the volume returns to normal. Gene Seroka, executive director of the Port of Los Angeles, said that he is working with shipping companies and terminal operators to "measure" imports until the port catches up. Hapag-Lloyd (Hapag-Lloyd) has announced the opening of a structured route to Southern California in February, and CMA CGM will remove Los Angeles from the trans-Pacific route and use Oakland as the first port of call from Asia. , Followed by Seattle-Tacoma.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

The terminal operator said that when workers throughout the supply chain are vaccinated and imports drop, the congestion in Long Beach, Los Angeles, will disappear.

Spring recovery?

Alan McCorkle, President and Chief Executive Officer of Yusen Terminals in Los Angeles, said that in the past six months, the container throughput of these terminals was close to record levels, but there was no overall congestion. This fact shows that if the peak season does not last for six consecutive months, they will have Ability to handle peak season cargo volume. He expects to return to normal in May or June.

Scott Schoenfeld, general manager of Fenix ​​Marine Services in Los Angeles, said that Fenix ​​is ​​showing signs of improvement, so he is optimistic that congestion may be eased as early as April . The density of containers in the yard is not as high as late last year, and more truck drivers are able to transport containers every day.

However, container traffic is still rising, and as overloaded ships continue to arrive in Southern California, this trend will continue until at least next month. NVOCC consultant Jon Monroe said that the eastbound transpacific shipping company has deployed or will add 10 additional loading vessels in February, all deployed at the Port of Los Angeles-Long Beach. Judging from the latest data from the Los Angeles Signal platform, there was another peak in the surge in volume in the eighth week.

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

Volume surged in the eighth week

 

Congestion in West America worsens! Aerial photography of Southern California full of container ships! Terminal operators expect to get rid of the dilemma by the end of spring

 

 

Jon Monroe pointed out that although more Chinese factories will continue to maintain at least part of their business this month to clear the backlog of merchandise orders compared to previous years, the total volume of the East Pacific trans-Pacific region should be greater than the previous six months. Months are less.

Scott Weiss, vice president of business development at Port Logistics Group, said that the 1.8 billion square feet of industrial and distribution space throughout Southern California is not fully loaded, just like last fall before the holiday season merchandise was transferred to stores across the country. However, the availability of space in warehouses and distribution facilities has been mixed. "Some warehouses are in a mess now, others are working well. I think the ratio is about 50-50,"

Scott Weiss said that productivity has generally declined, and warehouses across the region are experiencing labor shortages due to the new crown epidemic, but at the same time, freight volumes are still exceptionally strong. "Everyone I contacted is experiencing record sales and growth, but everyone is working hard to cope."

Weston LaBar, CEO of the Port Transportation Association, said that the current truck capacity is tight, and the availability of workers at both ends of the truck driver's route, the terminal and the distribution warehouse, has been challenged . However, when workers feel safe, they return in large numbers. LaBar said: "The most effective thing we can do right now is to vaccinate."