/ By tjchinafreight ivy / Shipping

Converting Bills of Lading: The Complete Manual and Recommendations

Converting Bills of Lading: The Complete Manual and Recommendations
Converting Bills of Lading: The Complete Manual and Recommendations

In a world of increasingly globalized economic fragmentation, shipping forwarders find themselves dealing with more trading companies and their foreign-to-foreign transactions than old-fashioned factory-to-importer freight.

The success of such contracts often depends on the ability of the trade agent to conceal factory contact details from the end buyer by issuing a conversion bill of lading.

What is a forwarding bill of lading?

A converted bill of lading is a second set of bills of lading issued by the carrier (or its agent) to replace the original bill of lading issued at the time of shipment.

Although it technically handles the same cargo, the information on the converted bill of lading is intentionally redacted for a variety of reasons and is not meant to be the same as the original bill of lading it replaces.

Reasons for Issuing a Conversion Bill of Lading

Conversion bills of lading are only issued upon surrender of the original and may be requested by any of the three parties directly involved in the purchase/sale of the goods: the owner/seller (or authorised representative), the trade agent and the ultimate buyer.

Reasons for needing to convert bills of lading include:

  • The seller (probably a trade agent) wants to hide the name of the actual exporter from the consignee to prevent the consignee from entering into a deal directly with the exporter.
  • The seller does not want the buyer to know the actual country of origin of the goods.
  • The original bill of lading may be detained in the country of shipment, or the vessel may arrive at the port of discharge before the original bill of lading.
  • The trade agent prefers to receive payment from the final payee before paying the shipper, thus easing his cash flow.
  • The cargo may be resold en route as a high seas sale and the port of discharge must now be changed to another port.
  • The destination customs or consignee requests to edit the cargo description. E.g. "tool" instead of "garden tool".
  • The goods were originally shipped in small packages on separate bills of lading and the buyer wanted to have only one bill of lading covering all packages to facilitate his sale. The reverse is also true - a single
  • bill of lading is issued for bulk cargo, which the buyer prefers to split into multiple bills of lading covering smaller packages.

Tips on how to handle converting bills of lading

1. The freight forwarder shall verify the reliability of the consignor authorized to issue the second set. Obtain their written authorization and a signed bond (countersigned by the bank if the agent deems it necessary) indemnifying the freight forwarder for all consequences of issuing a second set of bills of lading.

2. Freight forwarders should also consider whether they also need to obtain written authorization from other parties who may be affected by their actions, such as shipowners or shippers or banks. If the carrier authorizes the freight forwarder to issue an exchange bill of lading on behalf of the carrier, the written authorization of the shipowner must be obtained. Otherwise, the shipowner will make a valid claim to the agent for the loss caused by the unauthorized issuance of the second set.

3. If the principal requires the agent to issue a conversion order based on the client's indemnity, the agent shall obtain proper wording from the principal before issuing and obtain the complete indemnity approved by the principal.

4. It is also advisable to ensure that the freight forwarder is insured with the insurance for which the transfer order is issued. They should provide their insurance company with the exact reason for issuing the converted bill of lading.

/ By tjchinafreight ivy / Shipping

History of Incoterms

History of Incoterms
History of Incoterms

Now seems like a good time to dive into the history of Incoterms.

When were they first implemented? Why are they needed? What problem does each subsequent release aim to solve? More importantly, what can we expect to see in the future?

Below is the history of Incoterms - how they were born and how they have evolved over the years as commercial trade processes and practices have evolved.

A Brief History of Incoterms

FOB Incoterm was the first Incoterm created. Although its origins date back more than two centuries, the current Incoterms were not actually created by the International Chamber of Commerce (ICC) until 1936.

Since then, many changes have taken place in the international shipping world. To accommodate this change, new and improved versions of Incoterms appeared, such as those introduced in 1953, 1967 and 1976.

But for the past 5 years, revisions have alternated every decade and tend to be valid for the entire decade, e.g. Incoterms 1980, 1990, 2000 and 2010.

The importance of Incoterms and how they facilitate world trade cannot be denied. When Incoterms were first introduced, they were only available in 13 countries. After eight revisions, they are now widely used in over 140 countries and can be found in 31 different languages.

Reflections on the Evolution of International Trade

The world of international trade has changed a lot over the past 80 years—some big, some relatively small. These changes include new modes of transport, modifications to the types of international sales contracts, modifications to customs clearance of goods, new ways of information transfer, and more.

As this behavior changes, so must the terms that govern them. The ICC's goal of revising Incoterms is to keep shipping terms up to date and adapt to changing international trade demands.

/ By tjchinafreight ivy / Shipping

What are Peru’s main exports and imports?

What are Peru's main exports and imports?
What are Peru's main exports and imports?

Peru's economy is classified by the World Bank as an upper middle class economy. It is also the 39th largest economy in the world. Thanks to the economic reforms that took place in the 2000s, Peru has become one of the fastest growing economies in the world.

Exit

Peru's largest export partners are China (34%), the United States (11%), Switzerland (7%), South Korea (6%) and India (6%). Canada and Chile are also important export partners of Peru. Since Peru is a resource-rich country, it is related to both economic stability and social and environmental instability. With the government providing ready resources and multinational operations within Peru, the problem is unlikely to go away anytime soon.

Import

In 2017, Peru imported US$38 billion worth of goods, making it the 54th largest importer in the world. The main commodities Peru imports include petroleum/petroleum products, chemicals, plastics, machinery, wheat, corn, soy products, vehicles, televisions, front-end loaders, telecommunications equipment and telephones, paper, cotton and pharmaceuticals.

Many of Peru's imports come from China and the United States. Some other import partners include Argentina, Chile, Colombia, Ecuador, Mexico, Brazil and Japan.

U.S. Peru Trade Bond

In 2006, Peru and the United States signed the U.S.-Peru Trade Promotion Agreement (PTPA). While the agreement was ratified in June 2006, the revised protocol entered into force in June 2007. In December 2007, the Agreement Implementation Law became law and was officially implemented in February 2009.

In 2017, Peru’s trade in goods and services with the United States reached $20.1 billion. Exported goods were US$11.3 billion and imports were US$8.8 billion. In 2018, the U.S. and Peru recorded a trade surplus of $1.8 billion in goods. In 2017, the U.S. and Peru had a trade surplus of $1.2 billion in services.

The GDP of Peru in 2018 was approximately US$ 225.2 billion. U.S. foreign direct investment (FDI) in Peru in 2017 was $6.4 billion in stock terms. This direct investment is dominated by mining, manufacturing and non-bank holding companies.

/ By tjchinafreight ivy / Shipping

How to Import Computer Parts from China

How to Import Computer Parts from China
How to Import Computer Parts from China

If you plan to market your tech business to China, or you want to reduce overhead costs by purchasing parts, you need to understand the reasons for importing electronics from China. Specifically, computer parts require some special care and some import know-how.

In the past few years, China has adjusted some industrial policies and has become an important computer hardware producer in the world. In order to work with Chinese suppliers, it is important to understand these policies. Fortunately, these policies are not difficult to follow. Let's take a look at everything business owners need to know about importing technology from China.

Find Computer Parts Suppliers in China

The process of finding computer parts suppliers in China is not difficult. However, caution should be exercised when contracting with them. You should always do some homework before trusting a computer parts supplier.

First, check online reviews of different suppliers and warehouses in English. If this doesn't lead to any fruitful leads, your next step should be to work with an international law firm that specializes in translation, connecting business owners with Chinese suppliers, and handling Chinese intellectual property law and patents. This will ensure that you find a reputable supplier before you start signing contracts, and your lawyer will also help you translate and negotiate before signing.

If you want to import laptop and desktop parts from China, it is highly recommended that you work with a reputable and reliable freight forwarder, or possibly a law firm that specializes in Chinese trade.

Generic HS Code for Computer Parts

The HS (Harmonized System) code is a 10-digit code used by the United States to classify different export products. You need to be familiar with these codes before importing parts from China.

Regulations and requirements when importing electronic components from China
Some business owners are wary of importing electronics from China due to Chinese and U.S. regulations that have not been ideal for foreign businesses in the past. However, simply knowing how to comply with these regulations can make the process productive.

First, you should always look for suppliers that are 100% compliant with Chinese and US import and manufacturing laws. This can be difficult as many vendors may not invest in certification and compliance in different markets.

FCC certification

Compared to other countries, the U.S. rules on imports from China are relatively simple. The biggest certification you should consider is the FCC certification, which you can easily get for only a few hundred dollars. The FCC regulates any electronic product, including computer parts and Bluetooth devices. Any electronic components and components that emit radio waves that you want to import from China should be FCC certified.

If you are a retailer, in addition to the FCC, you will also need to have your parts and finished products certified by UL. This is not required by law, but voluntary compliance will show your consumers the quality of the products you produce.

Insurance

You also need to consider product liability insurance. Product liability insurance will protect you from possible problems if you import computer parts in bulk from China.

/ By tjchinafreight ivy / Shipping

The role of the Federal Maritime Commission

The role of the Federal Maritime Commission
The role of the Federal Maritime Commission

If you're shipping something overseas, you must be familiar with the role of the Federal Maritime Commission in ocean shipping. This guide will help you understand what an FMC is, understand its history, and determine its role in maritime shipping.

What is FMC?

First, what does FMC stand for? The acronym FMC refers to the Federal Maritime Commission, which was established in 1961 as a regulatory agency for 4 liner shipping groups and U.S. importers and exporters.

Although the FMC acronym was not adopted until August 12, 1961, its origins date back to the First World War. The Kennedy administration worked with Congress to create the Federal Maritime Commission so they could create regulations for maritime activities. shipping company.

The goal is to separate the governing bodies that oversee the U.S. merchant fleet and international shipping companies. The latter is now administered by the FMC and aims to regulate U.S. marine commerce.

The role of FMC in shipping

As you can see, the FMC, the Federal Maritime Commission, plays an important role in ocean shipping. Their mission is to ensure a competitive and reliable international maritime supply system that not only supports the U.S. economy but also protects the public from any deceptive or unfair practices.

Since its inception, FMC has adapted to all changes related to international shipping. They have been working to create a fair and efficient environment for exporters and importers while protecting the American public.

To accomplish this mission, they regulate the activities of Ocean Transportation Intermediaries (OTIs), which include ocean freight forwarders and NVOCCs.

Licensing Requirements

The FMC has specific licensing requirements. All OTIs must be licensed before performing any services in the United States. This licensing requirement means that if a company wants to buy or sell ocean freight services — whether to or from the U.S. — they must register with the Federal Maritime Commission.

If the agent is not licensed or registered with the FMC, they cannot use their ocean freight services, or any NVOCC services, in the United States. These unlicensed agents can only act as booking agents or freight forwarders.

Fees and Penalties

The Federal Maritime Commission reserves the right to assess fees and fines imposed by its regulatory agency. These penalties can be assessed if there are irregularities related to fees charged to customers and compensation received by ocean carriers from carriers.

The Federal Maritime Commission (FMC), as the regulator of maritime transport, ensures that the system is fair and competitive, while protecting the public from any unfair practices. They have licensing requirements and regulations that they must follow. Otherwise, they reserve the right to assess fees and fines.

/ By tjchinafreight ivy / Shipping

The busiest seaport in the world

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

The busiest seaport in the world

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

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

Learn about the harbour

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

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

/ By tjchinafreight ivy / Shipping

What is dual brokerage?

What is dual brokerage?
What is dual brokerage?

What is dual brokerage?

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

Some background

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

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

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

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

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

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

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

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

/ By tjchinafreight ivy / Shipping

Are you paying too much for shipping?

Are you paying too much for shipping?
Are you paying too much for shipping?

Are you paying too much for shipping? Shipping costs are a major consideration when determining the cost of doing business. Some companies can make a living with parcel shipping, but most manufacturing companies and the larger industry rely on less-than-truckload shipping at some point. LTL ("less than truckload") shipping can be expensive - especially if approached. Fortunately, there are options that prevent you from overpaying for shipping, and TJ chinafrieght can help you with that.

The first step is to collect data about your current shipping situation.

Before you can determine if you are overpaying for shipping, you must determine what you are actually paying for. It is important to understand what these costs are so that we can predict future changes in shipping costs.

Shipping rates are unlikely to drop anytime soon.

Remember, shipping has operating costs for them, and as those costs rise, they need to increase the rates they charge us to maintain their profitability. 3PL Corporation is in the business of providing customized shipping solutions to its clients and clients. This can mean anything from a dedicated account manager acting as a liaison to your company's shipping department to a dedicated service offering you co-design. Depending on the specific nature of your shipping needs, the type of 3PL service you require will vary.

LTL shipping is an essential shipping service for businesses of all sizes and in all walks of life.

As the economic landscape of the freight industry changes, the cost of traditional LTL shipping can be more challenging to your business bottom line. Fortunately, there are many tools your business has at its disposal to try and better meet your shipping needs. Want to learn more ways to save on shipping? Contact TJ chinafreight today!

/ By tjchinafreight ivy / Shipping

Freight Handling Professional and smooth shipments

Freight Handling Professional and smooth shipments
Freight Handling Professional and smooth shipments

Freight handling, also known as hauling, is the delivery of your cargo from the loading dock/carrier or premium warehouse to your booth and back to the loading dock/carrier at the end of the show. Hauling includes the delivery of materials to your booth, the handling of empty containers in and out of your warehouse, and the removal of your materials from your booth for reloading onto your outbound carrier. Freight handling should not be confused with the cost of materials to and from the show.

The safe handling of goods depends on the relevant personnel following the relevant procedures and applying the necessary skills to handle them. Therefore, this qualification is designed to provide learners in the freight sector with:

  • Comprehensive practical and theoretical foundations of freight handling.
  • The ability to work more effectively with others.
  • The skills necessary to maintain and improve the level and quality of service expected by customers.
  • Knowledge and understanding of key business principles leading to the transformation, transferability, economic growth and social development of the freight handling industry.

Freight Forwarding Services in China

Freight handlers play a key role in the movement of goods because they represent the physical link that ensures that goods are handled efficiently and safely. Warehouse and distribution companies hire freight handlers to unload their incoming cargo. The warehouse's freight handlers have offices on-site and on-site management. They generally use forklifts and pallet jacks provided by the warehouse. Their work is the main business because not only do they play an important role in inbound freight, but now they are starting to be used for outbound freight because they are cost effective. Freight handlers contract through warehouses and distribution centers for periods ranging from one to five years. Once at the warehouse, the carrier can choose to unload its own cargo or hire a freight forwarder.

Benefits of using a freight handler

  • The warehouse has a full-time third-party employee who spends nothing during the dead time, and basically they don't go to work.
  • Once the driver decides to hire, it is the responsibility of the unloader to unload.
  • The driver pays for the unloading of the semi-trailer
  • There are no warehouse or distribution charges for unloading of goods.
  • Another great benefit of this deal is that warehouses and distribution centers get rebates or cash back on all business generated.
  • It was a winning situation for both sides.
  • Freight handlers can also be trained to perform all duties around the warehouse. Then, when your company employees start working overtime, you can release them and use temporary service employees to
  • fill those positions. This is a great way to keep working hours low and profits high.
  • The unloading service of cargo is paid for by the cargo, box or pallet, they are usually never paid by the hour. This is great for productivity as they will work hard to stay productive because if they are not productive it will hurt their paycheck.

A good freight handling service provides weekly productivity reports so they can analyze where the problem is and come up with solutions to maintain control of the terminal. A good trucking service can help you recruit by letting you hire their staff. This gives you the advantage of trying before you buy. The best services don't even charge you for this benefit. This can be a free training ground for your future employees, giving you time to learn about their work. By outsourcing, you can develop a robust warehouse or distribution service.

/ By tjchinafreight ivy / Shipping

International Cargo Booking Service from China

International Cargo Booking Service from China
International Cargo Booking Service from China

Booking is simply the process of booking a space for your cargo from a shipping company in order to use their shipping company. This article explains some of the main steps to take before booking a LCL shipment with a freight forwarder. These precautions help you handle LCL shipments with your forwarder for smooth delivery and cost savings.

Cargo booking regarding transit time

First of all, don't expect the goods to arrive faster than the whole box. As a reminder to exporters, when booking LCL shipments with a forwarder copy, the cargo will be stuffed into the container as the cargo is a Less Container (LCL), once the forwarder has received enough cargo to make the container 'full' instead Receipt. The place of receipt may be close to the port of loading or container freight station, far from the port of loading depending on where your factory is located, export cargo is booked.

Second, they may have one or more transshipment ports before the goods reach their final destination. There may also be a delay of one or more days at the transfer point. Before appointing a freight forwarder, you need to have a clear understanding of the arrival of the goods at the destination. Have your forwarder provide you with the closing date (container packing date), the planned vessel schedule, the vessel schedule at the transshipment port (if any) and the estimated time of arrival (ETA). Once the cargo booking is delivered to the forwarder, the arrival schedule is properly monitored according to the planning details given by them.

Get a quote before booking

If any shipping is involved, what is the cost of inland shipping? How much is the sea freight to the final destination port, etc.? As the cargo booking is for Less Container Load (LCL), the freight forwarder quotes a fee per cubic meter basis (CBM basis). Learn how the CBM is calculated if the weight is more.

Destination service fee

Get written information from your local freight forwarder about "the amount of the fee, what their counterparty at the destination charges your buyer." This is important because in the LCL world, different freight forwarders charge different "delivery note fees" to the consignee. Because, as the forwarder gets to know each other at the port of loading and the final destination, the price quoted at the port of loading may be lower, but the “freight” price at the final destination is higher. Here, once the excess is charged to the consignee at the port of discharge as a "Bill of Lading fee" and a certain "rebate" is refunded to the forwarder at the port of loading!

Booking type

Shipping incoterms are international standard codes used to determine when and where to transfer cargo bookings between suppliers and importers.

For example, FOB (Free on Board) only includes transportation from the factory to the port of destination (ie, Hong Kong). In addition, FOB also includes all export formalities that are necessary to ensure that the goods can be exported legally. However, from the port of destination, you must arrange for transshipment to the final destination.

You can also pre-order DAP (Delivered in Place), which includes shipping from a factory in China to a designated address overseas. For example your office or warehouse when the cargo is booked.