/ 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

How to expand your business globally in 2022

How to expand your business globally in 2022
How to expand your business globally in 2022

You are an exporter and want to expand your business globally, but sometimes you feel like you\may have hit the iron ceiling of your business? Many business owners encounter this problem at various stages of their business. If you are considering the possibility of exporting your goods worldwide, you should go ahead. In this article, I will outline how to expand your business globally in 2022.

Step 1: Assess the market

Evaluate your target market as it is important to summarize and understand the content of your business analysis before going global.

Step 2: Business Objectives and Strategic Blueprint

Each market has different nuances due to market trends, culture, needs, and government regulations. Therefore, an analysis of business goals, objectives, needs, and success metrics is very important.

Step 3: Stock Inventory

Always take the unavoidable steps, and the inventory should always be ready and updated. Your product enables high-impact product differentiation.

Step 4: Freight Forwarder

It is necessary to choose your freight forwarder wisely, as freight as the best way to ship your goods, freight, insurance cargo, customs clearance, etc. has many hassles.

"Shiptos, the one-stop solution for all your logistics needs. It's a fully digital freight forwarder where you can get instant quotes for free, multiple options to ship your products, track your shipments, clear customs and insure your shipments."

Step 5: Sell the product

Now, the final step is, once your product reaches its destination, sell your product according to the strategy.

My point:

Take it one step at a time and don't get overwhelmed. But, take it seriously. Whatever you choose, don't rush it. Know what you are doing. Do additional research, learn about best method practices, test several methods and always analyze your results.

/ By tjchinafreight ivy / Shipping

Ship backlog decreases outside Los Angeles port

barge docked in port
barge docked in port

The Port of Los Angeles released its March container throughput report on Tuesday, which came in better than expected at 958,674 TEU. It was the port's best March ever for container throughput figures. In the first quarter of this year, total cargo volume at the Port of Los Angeles reached 2,682,034 TEU, an increase of 3.5% over the same period last year, completing the best first quarter ever.

The month-on-month surge in imports was particularly pronounced. Import shipments in March were up 17% from February and 29% from December, which was at its lowest level since June 2020, when the U.S. was in lockdown.

Gene Serok, executive director of the Port of Los Angeles, said in announcing the monthly data that container imports in March 2022 reached 495,196 TEU, up 1% year-on-year; container exports were 11,781 TEU, down 9% year-on-year. Exports from the Port of Los Angeles have declined in 37 of the past 41 months.

Record volumes of freight have been stuck in ships lining up outside the port. Actual cargo volumes arriving in California from Asia in March should be seasonally reduced due to the Chinese New Year holiday in February. But as more ships were lined up to unload, import box handling surged.

The number of container ships waiting around the Port of Los Angeles/Long Beach fell 20% from 60 to 48 in early March to the end of March, according to data from the Southern California Maritime Exchange.

"I think that's why we had a strong first quarter," said Gene Seroka. "First of all, our terminals are handling cargo at record levels, and we have berths at the terminals, with improved terminal liquidity and a reduction in the backlog of vessels outside the port. There’s also more room to deploy on the docks. Two, we have more workers on the docks. Three, we’re using more data than ever before.”

When the supply chain crisis finally lifted, it looked like it should have been an increase in imports at first, followed by a downturn. The number of waiting ships at the Port of Los Angeles follows the first part of this pattern, but this may only be a temporary relief. Not only is the rate of decline in queues on the West Coast slowing, if not reversed, but port congestion on other coasts is still very high.

On April 4, the container ship queue at the Port of Los Angeles/Long Beach dropped to 33. There were 46 container ships waiting on Tuesday morning, up 39% from the lows.

Vessel position data from MarineTraffic showed that the number of vessels in queue remained high Tuesday afternoon near ports on the East Coast/Gulf Coast. A total of 64 container ships are waiting to berth, including 16 in the Port of Charleston, South Carolina, 13 in the Port of New York/New Jersey, 12 in the Port of Houston, 11 in the Port of Virginia, and 6 in the Port of Savannah, Georgia There are three ships in Freeport, Bahamas, and one each in Philadelphia, New Orleans and Jacksonville, Florida.

At the same time, there is no evidence yet of a significant drop in import shipments. FreightWaves has a proprietary seaborne import cargo volume index to the United States, measured in TEU, indexed to January 2019. The index remained above 200, about the same as a year earlier.

/ By tjchinafreight ivy / Shipping

4 time limits for foreign trade export tax rebate

Export enterprises should pay special attention to the declaration procedures and the concept of time when handling export tax rebates to avoid losses. When exporting tax rebates, export enterprises should pay attention to the following four time limits:

One is "30 days"

After foreign trade enterprises purchase import and export goods, they should promptly obtain special VAT invoices or ordinary invoices from the supplying enterprises, which are VAT invoices for anti-counterfeiting tax and tax control, and must go through the certification procedures within 30 days from the date of invoicing.

The second is "90 days"

Foreign trade enterprises must go through the export tax rebate declaration procedures within 90 days from the date of export declaration of goods, and production enterprises must go through tax exemption and deduction declaration procedures within three months from the date of declaration of goods for export.

The third is "180 days"

Export enterprises must provide the local competent tax refund department with the verification form of export foreign exchange receipts (except for forward foreign exchange receipts) within 180 days from the date of export declaration.

The fourth is "3 months"

If the paper tax refund certificate for export goods of an export enterprise is missing or the contents are incorrectly filled in, and it can be reissued or changed according to relevant regulations, the export enterprise may apply to the tax refund department for an extension of the declaration of tax refund (exemption) for export goods within the declaration period. , the application can be extended for 3 months.

Tax classification and attached materials of tax refund (exemption) for export goods

According to the current tax system, the two types of tax refund (exemption) for export goods in my country are value-added tax and consumption tax within the scope of turnover tax (also known as indirect tax).
The tax refund (exemption) for export goods is the value-added tax and consumption tax that have been paid in all aspects of domestic production and circulation of export goods.

Keywords: turnover tax

It generally refers to the so-called tax on items characterized by commodities. As far as my country's current tax system is concerned, turnover tax includes value-added tax, business tax, consumption tax, land value-added tax, customs duties and some local industrial and commercial taxes.

Materials for export tax rebate:

1. Customs declaration. The customs declaration form is a document filled in by the import and export enterprise to go through the declaration procedures to the customs when the goods are imported or exported, so that the customs can check and release the goods based on this.
2. Export sales invoice. This is the document filled out by the export enterprise according to the sales contract signed with the export buyer. It is the main document for foreign purchases, and it is also the basis for the accounting department of the export enterprise to record the sales revenue of export products.
3. Purchase invoice. The main purpose of providing purchase invoices is to determine the supplier, product name, measurement unit, and quantity of export products, whether it is the sales price of the manufacturer, so as to divide and calculate the purchase cost.
4. Foreign exchange settlement bill or foreign exchange receipt notice.
5. For the self-made products directly exported or entrusted to export by the manufacturer, if the settlement is based on the CIF price, the export cargo waybill and export insurance policy should also be attached.
6. Contract Information. Enterprises that have the business of processing re-exported products with imported materials shall also submit the contract number, date, name and quantity of imported materials and parts, name of re-exported products, cost of imported materials and various taxes paid to the tax authorities. amount, etc.
7. Product tax certificate.
8. Proof that the export proceeds have been written off.
9. Other materials related to export tax rebates.

General trade export goods tax refund method

At present, the tax refund methods for foreign-invested enterprises export goods include "first levy and then refund" and "exemption, credit, and refund" tax.

"Tax first and then refund" means that the goods exported by production enterprises by themselves or by entrusted agents shall be taxed at the tax rate stipulated in the Interim Value-Added Tax Regulations, and then the tax authorities in charge of export tax rebates shall conduct tax rebates within the national export tax rebate plan. Approval of tax refund according to the specified tax refund rate.

Tax basis

The tax refund amount shall be calculated according to the FOB price of the current export goods multiplied by the exchange rate in RMB.

"FOB" (written as FOB price in English) is the FOB price at the port of shipment, but this FOB price is a symbolic price, that is, the seller will hand over the necessary shipping documents to the buyer to collect the payment according to the contract, and the risks of the buyer and the seller are divided. All are limited by the loading of goods on the ship. Therefore, the FOB price is for the buyer to be responsible for chartering and booking space, and to apply for insurance to pay the transportation and insurance premiums.

Start your journey and see more shipping services.

/ By tjchinafreight ivy / Shipping

International air transport knowledge

Eight elements of air freight inquiry:

1. Product name (whether it is dangerous or not)
2. Weight (charges involved), volume (dimensions and whether it's in stock)
3. Packaging (Wooden box or not, with or without pallet)
4. Destination airport (whether it is a basic point or not)
5. Time required (direct flight or transfer flight)
6. Requested flight (different flight services and prices)
7. Types of bills of lading (main and separate orders)
8. Required transportation services (customs declaration method, agency documents, whether customs clearance and delivery, etc.)

Air freight is divided into heavy cargo and bubble cargo.

1CBM=167KG The volume weight is compared with the actual weight. Which one is larger is charged according to which one. Of course, there is a little secret in the air freight bubble, which all colleagues should know, and it is inconvenient to talk about it here. Manufacturers who do not understand can figure it out for themselves.

Air freight structure composition - did you know?

There are many people who do air freight. Do you know how the air freight rates of airlines are calculated? A brief introduction, I hope to help everyone.

Air freight composition:

1. Airfreight freight (charged by the airline)
2.Fuel sur charge fuel surcharge (depending on the airport, the price of the destination point is different, Hong Kong is generally about the first 4 yuan now, before 3.6, last year the highest 4.8, the price is adjusted by the airport, generally 2 yuan to Asia)
3. Security check fee (fixed fee of 1 yuan/kg in Hong Kong)
4. Airport operation fee (HKD283/ticket in Hong Kong, the airport is responsible for transporting goods on the plane, etc.)
5. Terminal fee: 1.72/kg When the goods are handed over to the dealer, the dealer is responsible for the board and other things, and finally handed over to the airport for collection)
6. Air main bill fee: HKD15/bl is the fee for issuing the bill of lading - document of title.

The above is the composition of accounting fees for most airlines, mainly Hong Kong Airport. Because Hong Kong is a super-large free trade port, and Hong Kong Airport is the largest airport in the world, it has fewer restrictions, a wide range, and a large number of cargo aircraft. There are currently 78 airlines. There are more than 100 flights every day, which can be the first choice when the space and service are guaranteed. However, the cost is generally about 2 yuan higher than that in China!

What are the types of air cargo?

When you decide to ship your goods by air, you should know that there are two main types of air freight:

  • Special shipment
  • General shipment

Special cargo allows heavy, hazardous material and temperature managed cargo. It also allows human tissue samples, organs, fragile, value items and animals.
General Crago allows digital machinery, hardware, consumer goods, retail goods, toys, clothing and textiles, and more.
Air cargo is transported using different types of aircraft including passenger, cargo, charter or helicopter.

What are the factors that affect the cost structure of air freight?

Many factors contribute to the cost of air freight, such as:

  • Special event or holiday
  • Traditional/New Regulations
  • Economic situation
  • Technology (robotics, augmented reality, drones, artificial intelligence and big data)
  • Other additional charges such as cargo insurance, airline terminal handling charges, customs clearance and security surcharges are also included in the fee.

Common air freight nouns:

ATA/ATD (Actual Time of Arrival / Actual Time of Departure)
Abbreviation for actual arrival/departure time.

Air Waybill (AWB)
A document issued by or on behalf of the shipper, which is proof of the carriage of goods between the shipper and the carrier.

Unaccompanied Baggage (Baggage, Unaccompanied)
Baggage that is not carry-on but checked in, and luggage that is checked in.

Bonded Warehouse
In this type of warehouse, goods can be stored indefinitely without paying import duties.

Bulk Cargo
Loose shipments that are not palletized and boxed.

CAO (Cargo for Freighter Only)
Abbreviation for "Cargo Aircraft Only", meaning that it can only be carried by cargo aircraft.

Charges Collect
List the charges to the consignee on the air waybill.

Charges Prepaid
List the charges paid by the shipper on the air waybill.

Chargeable Weight
The weight used to calculate air freight. The billable weight can be the volumetric weight, or when the cargo is loaded in the vehicle, the total weight of the load minus the weight of the vehicle.

CIF (Cost, Insurance and Freightage)
Refers to "Cost, Insurance and Freight", which is C&F plus Seller's insurance for loss and damage to the Goods. The seller must sign a contract with the insurer and pay the premium.

Consignee (Consignee)
The person whose name is listed on the air waybill and who receives the goods carried by the carrier.

Consignment
The carrier receives one or more pieces of goods from the shipper at a certain time and place, and carries it to a certain destination with a single air waybill.

Consignor
Equivalent to shipper.

Consolidated ConsignmentA consignment of goods consigned by two or more shippers, each of which has signed an air freight contract with a consolidation agent.

/ By tjchinafreight ivy / Shipping

Export documentary collection

What is it?

The exporter (a client of UniCredit Bulbank) ships the goods to the buyer and presents the bank with documents related to the goods and their shipment, such as commercial invoices, bills of lading, cargo insurance, etc., with collection instructions. In the collection instruction, the exporter identifies the foreign buyer (payer), full details of the buyer's bank (collecting bank), a brief description and value of the exported goods, a full description and value of the type and number of documents submitted, and Conditions for handing over documents to the drawee.

UCB processes the documents and forwards them to the collecting bank, usually the buyer's bank, for processing and delivery to the buyer in accordance with the collection instructions. As instructed, the collecting or presenting bank releases the documents to the payer after paying the value of the documents, or according to a written commitment to accept/pay when due, or not to pay.

Under export documentary collection, the bank only receives and transmits documents according to the exporter's instructions on how to handle the documents, without any payment obligation to the exporter. Payment for documents sent on a collection basis depends solely on the goodwill and creditworthiness of the buyer.

A step-by-step guide to understanding export documentary collections

Broadly speaking, from your (as the exporter) perspective, the export documentary collection process can be broken down into five steps:

1. Terms and Conditions:

You and your importer agree to terms of transaction and payment, including the use of export documentary collections. At this point, you should also negotiate whether:

Acceptance Document (DA) – Once the importer agrees to pay later, a document related to the sale of the goods will be provided.
Payment Document (DP) – Once payment is made and finalized, the importer will get the document.

2. Shipment and receipt of documents:

You ship the goods and receive documentation from the carrier or freight forwarder that the shipment has occurred.

3. Submit documents to the bank:

First, fill out the export documentary collection application form and the draft. Next, submit these documents along with your shipping documents to OCBC, which is also known as the remittance bank during the process. Your remittance bank will then proceed to:

Forward these documents to your importer's bank, the collecting bank.
The collecting bank will then notify your importer that the documents have arrived and will release the documents when the payment terms are met (this depends on whether your payment term is DA or DP, as described in step 1 above).

4. Receive payment from importer and own the goods:

Importers will pay their bank and obtain documentation via DA or DP (as above).

5. Payment receipt from OCBC Bank to exporter:

OCBC Bank will deposit funds into your account immediately upon receipt of funds from the importer's bank (in the case of DP) or on the scheduled date when the draft has been accepted (in the case of DA).

Key point

D/C is less complex and less expensive than LC.
Under a D/C transaction, the importer is not obligated to pay for the goods before shipment.
If properly structured, the exporter will retain control of the goods until the importer pays the draft amount at sight or accepts the draft to meet the legal obligation to pay at a later date specified.
Although sea transportation can control the goods, it is more difficult to control air and land transportation. Foreign buyers can receive the goods with or without payment, unless the exporter hires an agent in the importing country to pick up the goods until the goods arrive for payment.
The exporter's bank (the remittance bank) and the importer's bank (the receiving bank) play a vital role in the letter of credit.
Although banks control the flow of documents, they neither verify documents nor take any risk. However, they can affect the mutually satisfactory settlement of D/C transactions.

/ By tjchinafreight ivy / Shipping

What to pay attention to when exporting to India by sea

1. Exporting to India: Challenges

U.S. exporters must be aware of certain obstacles when exporting to India. But with careful planning and assistance from agencies like US Business Services, exporters of all sizes can definitely succeed in the Indian market. According to the National Business Guide for India, the challenges include:
High tariffs and protectionist policies
Exporters and investors face an opaque and often unpredictable regulatory and tariff regime. xxx
price sensitivity
Even before the economic slowdown and the pandemic, Indian companies and consumers were extremely price-sensitive.

Infrastructure
Inadequate road, rail, port, airport, education, power grid and telecommunications infrastructure are major obstacles to the country's efforts to achieve strong economic growth. India's continued urbanization and rising incomes have led to increased demand for improved infrastructure to provide public services and sustain economic growth.

Data localization requirements and e-commerce restrictions
The Indian government is aggressively pursuing a policy of requiring Indian data to be processed and stored only in India, which has severely impacted the business of many US companies. The proposed data protection bill currently being passed through the Indian legislature will affect a wide range of businesses in India and internationally. Changes to laws on what and how e-commerce companies can sell online are an unexpected blow to the U.S. online giant. The new law limits discounts for e-commerce companies and prohibits companies from selling products from companies they affiliate or own.

Local content requirements
In specific sectors, including information and communication technology (ICT), electronics and solar energy, the Indian government is seeking local content requirements to stimulate an increase in the contribution of manufacturing to GDP. These policies have had a negative impact on U.S. exporters.

State power
Companies should be prepared to face the different business and economic conditions in India's 29 states and 7 federal territories. Power and decision-making in India is decentralized, with major differences at the state level in terms of political leadership, quality of governance, regulations, taxation, industrial relations and education levels.

Intellectual Property (IP)
India is one of the most challenging major economies in the world in terms of intellectual property protection and enforcement.

customs clearance - TJ

2. Customs 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.

3. Customs 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.

4. Return 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 • Warehouse

Guidelines for Bonded Warehouses, Bonded Factories, and Export Supervision Warehouses

warehouse

Bonded supervision place is one of the important forms of customs bonded system. There are several common modes of bonded warehouse, export supervision warehouse, bonded factory and bonded logistics center. With so many similar concepts, can you tell them apart? Today, TJ chinafreight will introduce these concepts and related tax refund policies to you.

Bonded warehouse

A bonded warehouse is a place used to store and process goods imported into new markets. Goods stored in bonded warehouses are not subject to customs duties (a type of tax). Any applicable customs duties shall be paid when the goods are transported to the next destination. Bonded warehouses can be owned by governments or private companies, helping to improve inventory and cash flow efficiency. Using a bonded warehouse means that goods can be moved closer to their final destination, and payment of duties can be deferred until the product is moved. The system provides significant benefits for commercial transactions across different jurisdictions. For organizations importing and exporting goods, bonded warehouses can be used to eliminate the need to pay customs duties, further increasing efficiency. The purpose and structure of a bonded warehouse varies from country to country.

Bonded Factory

A bonded factory is a factory or enterprise that has been approved by the customs and specialized in processing and manufacturing re-exported products with bonded imported materials. The materials and parts imported by the bonded factories for the production of export products are customs bonded goods, and the customs will fully bond them. After the processed and manufactured finished products are exported, the imported materials and parts will be exempted from import duties, import value-added tax and consumption tax according to the actual consumption.

Export supervision warehouse

The export supervision warehouse refers to the special customs supervision warehouse that stores goods that have gone through customs export formalities, carries out bonded logistics and distribution, and provides marketable value-added services. Including the export distribution warehouse (storing the actual exit of the export) and the internal transfer warehouse (storing the export and internal transfer).
Bonded warehouse refers to a warehouse dedicated to storing bonded goods and other goods that have not gone through customs formalities. Including public bonded warehouses, self-use bonded warehouses and special bonded warehouses (such as liquid dangerous goods bonded warehouses, material bonded warehouses, agency sales bonded warehouses, etc.).

Inbound and outbound cargo management between the logistics center and overseas. For goods entering and leaving between the logistics center and overseas, the customs in charge of the logistics center shall implement record entry and exit management. Goods entering the logistics center from abroad upon approval by the customs shall be bonded, office supplies, transportation, transportation tools, consumer goods, etc. for self-use imported from abroad, as well as imported machinery, loading and unloading equipment, management Equipment, etc., go through relevant procedures in accordance with the relevant regulations and tax policies of imported goods. When the goods stored in the bonded logistics center leave the logistics center and are finally exported to overseas, the customs shall implement the record management.

Management of incoming and outgoing goods between the logistics center and areas outside the domestic bonded supervision area. The goods entering the logistics center are deemed to be imported, and the import declaration procedures shall be handled according to the actual trade mode and actual status of the goods; the goods entering the logistics center from the territory are deemed to be exported, and the domestic consignor shall go through the export declaration procedures, and can enjoy the refund of export goods (exemption). tax policy.

/ By tjchinafreight ivy / Cargo • Shipping

Konecranes-Cargotec merger cancelled as UK CMA blocks deal

According to a final report by the UK's Competition and Markets Authority (CMA) on March 29, the remedy - which would eliminate all overlapping operations of the two companies and be accepted by the European Commission (EC) - will not effectively address the Cargotec & Konecranes board of directors The CMA's concerns and the planned merger between Konecranes and Cargotec could not be completed, the statement wrote. Previously, the merger plan has been approved by China's State Administration for Market Regulation and nine other major regulators, as well as conditional approval from the European Union.

The CMA found that "the expected merger between Cargotec Corporation and Konecranes Plc is likely to result in a significant reduction in competition as
Consequences of horizontal unilateral effects in the supply of the following types of equipment in Europe (including the United Kingdom (Europe)):

(a) Rubber Tyred Gantry Cranes (RTGs);
(b) Automatic Stacking Cranes (ASC);
(c) Shuttle Cars (ShC) and Straddle Carriers (SC);
(d) Empty Container Handlers (ECH);
(e) Heavy Duty Forklifts (HDFLTs);
(f) Reach Stackers (RS); and
(g) Automated Terminal Tractor (ATT).”

According to the CMA's final report, the remedies that would eliminate all overlapping operations of the two companies and accepted by the European Commission would not effectively address the CMA's concerns, so the planned merger between Cargotec and Konecranes could not be completed.
Completion of the planned merger requires approval from all relevant competition authorities, the companies said in a joint statement.

"As a result, Cargotec and Konecranes have decided today to cancel the planned merger," the director said.

Konecranes and Cargotec have the same origin. When the Finnish company KONE (KONE) underwent a large-scale reorganization in 1994, Konecranes was split into an independent company. In 2005, KONE was split into Cargotec and ( new) KONE two public companies. The merger will bring Konecranes back to the arms of Finland's wealthiest family, the Herlins, in a deal potentially worth up to 4.5 billion euros.
The two giants who share the same business are the leaders in the port machinery industry. If the two merge, they will have little impact on the market share in the field of quay cranes, but they will have a market share in tire cranes, automated tire cranes, and automated rail cranes. The rate will be in the leading position in the industry, the market share in the field of straddle carriers will reach almost 100%, and it will also become the world's first in the field of port handling equipment such as reach stackers and stackers.

Konecranes Chairman Christoph Vitzthum said: "As planned and announced on October 1, 2020, the combination of Konecranes and Cargotec will create a company that is greater than the sum of its parts.

"The merger control process was extensive and the investigation was thorough, and the Konecranes board is disappointed that the remedial package offered has not met all regulators' concerns.
“At the same time, we believe that further remedies are not in the best interests of Konecranes shareholders, as they would alter the strategic rationale of the transaction. Konecranes will continue to advance its strategy and pursue its value creation potential on an independent basis.

Ilkka Herlin, Chairman of Cargotec, commented: "The Board of Cargotec believes that the merger will create considerable value for the entire industry as well as shareholders by improving sustainable logistics. The merger will create a strong European company that will accelerate without compromising competition. Share innovation capabilities.
"We have done everything possible to achieve the merger and are disappointed to have to abandon our plans. After a long and extensive regulatory review process and preparation of the merger plan, it is time to shift our full focus to executing Cargotec's own strategy and creating value opportunity."

On March 29, 2022, the two companies announced that the CMA believes that the remedies will not address monopoly concerns and prevent the merger. Konecranes and Cargotec believe that there is no solution that simultaneously addresses the concerns of the CMA, is in the best interests of both companies and the combined company, and does not compromise the original intent of the merger, which requires approval from all relevant regulatory agencies. The company decided to cancel the merger plan. Both parties believe that the cancellation of the merger is in the best interests of their respective companies and shareholders, and will continue to operate independently and execute their own strategies. As of the end of 2021, Konecranes and Cargotec have included 56 million euros and 57 million euros in the related transaction and planning integration costs of the merger, respectively. The total transaction cost of 125 million euros is still valid. The two parties will follow up when appropriate. Report final transaction costs.

/ By tjchinafreight ivy / Shipping

Ownership-based container terminal types

What is a container terminal?

Container terminal or container port (used interchangeably) is a term designated for an intermediate destination facility that enables containers to switch modes of transport on their way to their final destination.
Many times, cargo arrives at a container terminal on a single vessel and is distributed to inland customers by multiple modes of transport. The terminal is also an area dedicated to maintenance and temporary storage of containers. Occasionally, the unloading, loading and storage of the cargo in these containers is also carried out here.

Container Terminal Type

Container terminals around the world are divided into five categories based on their ownership:

Public terminals, operator leased terminals, joint ventures between operators and terminal operators, terminal built and operated by operators, and finally terminals built and operated by operators. Below is a brief overview of the five terminals -

1. Public Pier
All facilities of the public terminal, such as loading and unloading processes, tariff rates and allocated entry and exit locations are shared by all shipping lines and operate on a first-come, first-served basis. Regular duty rates apply to container handling and other related charges, or are otherwise discounted or at agreed rates.

2. The carrier leases a dedicated terminal
These are the result of major carriers working with port authorities, culminating in the signing of long-term leases that are exclusively used by these carriers. The carrier is responsible for paying the costs incurred as carrier preference. For example, Maersk has a number of terminals that have signed long-term use contracts. In addition, some shipping companies have formed partnerships to share terminal usage using multi-user long-term contracts.

3. Terminal construction and operation of terminals
Terminal operators invest directly in the construction, operation and handling of terminals. The operator enters into a lease contract with the port authority by depositing a sum into the gross handling charge of the container business.

4. Operators – build and operate terminals
The method is similar to that used for terminal construction and operation of terminals. In this type of licence, one or more carriers jointly lease a container terminal through deposits with port authorities or direct investment in construction, operation and handling services

5. Joint venture between carrier and terminal operator
In this type of contract, an agreement is reached between the shipping company and the terminal operator, thus forming a company. Direct investment, combined terminal operations for safe, prioritized and efficient container handling.