/ 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

Why do you need a freight forwarder that provides it?

Why do you need a freight forwarder that provides it?
Why do you need a freight forwarder that provides it?

When transporting your goods, whether by road, air or sea, there are various risks. Even with the assistance of a reliable freight forwarder, there are many external factors that can interfere with the progress of the logistics process.

The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.

Guaranteed no financial loss

Everyone wants hassle-free shipping. No one wants to have problems shipping their goods overseas, but there are still some risks you can't avoid and can cause problems with your shipments. This is the most important reason why you need to rely on a freight forwarder who provides cargo insurance: they will ensure that you will not suffer any financial loss if anything happens in transit.

Prepare for the unexpected

When running a global logistics operation, you should be prepared for unexpected events throughout the operation. Whether it's inappropriate weather conditions or carrier issues that could cause your cargo to be lost, good cargo insurance will give you all the support you need in situations beyond your control.

Expertise in exporting/importing anytime, anywhere

In addition to the safety and financial reasons for hire cargo insurance, there is also the fact that some countries only allow import and export business to carriers who provide proof of cargo insurance. Therefore, insurance must be employed to be eligible to ship to these countries!

How to find the ideal cargo insurance for your logistics needs?

Each type of cargo insurance has specific coverage, and you should find the one that works best for your cargo. To determine the most suitable international freight insurance, it is recommended that you get the help of a freight forwarder who can guide you through all the insurance options available and best suited for your export/import needs, such as TJ chinafreght.

/ By tjchinafreight ivy / Shipping

How to Find a Heavy Equipment Shipping Partner You Can Trust

How to Find a Heavy Equipment Shipping Partner You Can Trust
How to Find a Heavy Equipment Shipping Partner You Can Trust

When shipping heavy equipment (or any cargo), working with a shipping provider you trust can have a profound impact on your experience. The right shipping partner will ensure that the entire process runs smoothly from start to finish, minimizing your work, stress, and often costs and any risk to your company.

When looking for a shipping partner you can trust, it's easy to find and choose the wrong one.

Here are some suggestions to help you avoid choosing the wrong heavy equipment shipping partner:

  • Taking the time now to choose the right heavy equipment shipping provider will save you a lot of trouble
  • Not only look for trusted heavy equipment shipping providers, but watch out for those you don't trust.
  • Pay attention to the right details when vetting potential heavy equipment (and other freight) shipping partners.

Here is some information you should ask for during your initial conversation with any potential shipping provider:

  • Evidence of financial stability
  • Safety record
  • Insurance and authorities
  • Communicate
  • Cargo transportation knowledge

A reputable and trusted partner will have this information and be happy to order quickly. This is a major warning sign if a potential shipping provider asks questions, delays providing you with this information, or otherwise attempts to circumvent your request.

Hope you don't get lost if you choose the wrong heavy equipment shipping provider.

If you find yourself working with a shipping partner you cannot trust, then you must review your contract with them. Determine what your partner is contractually obligated to provide and be ready and willing to take legal action if necessary.

Then, look for a trusted shipping provider as soon as possible. Depending on the situation, the right partner may be able to help you with your current situation. At the very least, he or she will be able to prevent and mitigate any potential problems.

/ By tjchinafreight ivy / Shipping

Cross-border delivery of products

Cross-border delivery of products
Cross-border delivery of products

Why you should ship internationally ?

Deciding to ship your products internationally can be a tough one, but the chances of an ecommerce business reaching new customers and increasing revenue often outweigh the initial process required to set up.

But if you're still on the sidelines, it might be helpful to know that now, better than ever, it's better to start shipping goods overseas, as we see a dramatic increase in the global middle-class population. This opens up new markets that were previously inaccessible in places like Asia, Africa and South America.

Choose your shipping process

Determining your shipping and fulfillment process starts with understanding your business model and target market. Do you ship directly to consumers, or sell to other businesses? Do you want to handle the details yourself, or would you rather work with an expert to resolve red tape and deal with customs authorities? Based on your answers to these questions, you will be able to determine what shipping arrangements are best for your company.

D2C, B2C or B2B?

What type of company are you? What do these three-letter options mean to you? If not, don't worry - we're breaking them down for you. It all depends on who you sell your product to.

Direct-to-Consumer (D2C)

- This is a popular choice for wholesaler companies. In this business model, middlemen are removed and customers buy directly from the manufacturer. Customers generally benefit from lower prices, so many choose to do business with D2C companies when possible.

Business to Consumer (B2C)

- This is the most popular e-commerce business model and is where a business sells products to a specific niche of customers. They don't make actual products, that's what differentiates them from D2C companies. Any consumer can order directly from their website, and the orders are usually small to medium.
Business to Business (B2B)

- If you are a business, manufacturer or distributor, and you sell directly to other businesses, then you have a B2B model. The typical consumer would not buy directly from this type of business, and the order size would be much larger.

Tips for reducing friction for you and your customers when shipping internationally

We like to think that where there is a challenge, there is a solution. We show you three inevitable hurdles you may encounter when you start shipping internationally. Now, here are some tips and possible solutions to overcome the potential challenges that international shipping can present.

  • Always ship DDP (Delivered Duty Paid) whenever possible - this removes the unpredictability of customs duties and duties in the destination country. And, as mentioned earlier, it offers your buyers an added benefit by adding a level of security and confidence, as they will avoid risks during shipping.
  • Negotiate discounts based on quantity whenever possible. Shipping rates are usually negotiable, so if you ship a certain quantity each month, you should be able to apply for a discount, especially if you can guarantee the same quantity each month.
  • If you can find a reliable and well-known logistics service provider, choose a regionally focused logistics service provider. Follow the tips we covered earlier and let a regionally focused freight provider handle the details for you. The time you save is money in your pocket.
  • Book with your freight forwarder early in the shipping cycle. This allows you to secure space with the airline or shipping company as early as possible. This is critical, especially in the uncertain times we are in the COVID-19 pandemic.
/ By tjchinafreight ivy / Shipping

Why Hiring a Freight Forwarder Is Good for You

Why Hiring a Freight Forwarder Is Good for You
Why Hiring a Freight Forwarder Is Good for You

What is a freight forwarder?

A freight forwarder is a service that most importers and exporters use to arrange shipments. Freight forwarders are licensed experts who understand how the end-to-end shipping process works and can do it on your behalf. Think of them as travel agencies for freight - just like travel agencies, they come in many shapes and sizes.

Some are freight companies or freight brokers in nature and are not involved in international shipping. Some specialize as ocean or air freight forwarders. Smaller freight forwarders often limit their reach to a few popular countries where they have working relationships with local logistics providers. At the other end of the scale, the larger freight forwarders offer global shipping services.

Choose the right freight forwarder

Choosing the right international freight forwarder can be a make-or-break choice for importers as international business is unpredictable. Poorly selected freight forwarders can result in government penalties, lost or damaged shipments, incorrect invoices, and inconsistent pricing.

The Importance of Hiring an International Freight Forwarder

International freight forwarders are an important part of the world economy and play a key role in every country as they are the only suppliers of goods and services to end consumers. Here are the dimensions in which they play an important role:

The internet

Freight forwarders help build and maintain friendly relationships between shippers, officials, carriers, and other freight forwarders, while facilitating fast shipments. Additionally, they limit friction between supply chain stages and add bottom-line value to it.

Negotiation

Some effective freight forwarders can easily find the balance between appeasing all trusted relationships and practicing all savvy trade deals, even if it needs to keep the business open to receive bids from other carriers.

Inventory management

It includes the most important parts of the supply chain, including the arrangement, maintenance and storage of inventory. It also includes business support in other areas, including procurement and production.

Schedule

The task of all freight forwarders is to book cargo hold in more than one mode of transport, which requires the coordination of all entities within the supply chain, including suppliers, manufacturers, carriers, etc.

/ By tjchinafreight ivy / Shipping

Time-Saving Tips for Shipping Freight

Time-Saving Tips for Shipping Freight
Time-Saving Tips for Shipping Freight

For the best shipping rates, you want to start the process of preparing your shipment as soon as possible. Depending on what you're shipping, this may involve packing, packing, and placing your cargo on pallets for dry truck loading. If you have flatbed hauling, such as heavy equipment, you will need to collect the make and model, as well as the size and weight of the load. Once you have your load ready and have a solid plan for the size of the load, it's time to decide on shipping. By taking these steps before contacting the company for shipping costs, you can save a lot of backtracking.

Choose your shipping type

Do you ship by full truckload, including 26 pallets or 46,000 lbs? Or would you like to ship some of your shipments using less than full truckload (LTL) freight services? Either is possible, but you need to know which type of shipping service to request.

Choose a trailer

Determine the type of trailer required for loading. If the load requires weather protection and safety, a dry truck trailer is the way to go. However, your load must fit on a 53-foot wall trailer. If you're transporting oversized loads, heavy equipment or vehicles, a flatbed trailer is your only option. Unprocessed liquids and bulk commodities such as corn or grain require tanker trailers. A refrigerated trailer is required for cargo that must be kept at a certain temperature, such as frozen meat or fresh fruit. Know the basic trailer type you need to get a more accurate shipping rate.

Determine the distance

The biggest determinant of shipping costs is how far the goods need to be transported. Get the shipping and delivery destination addresses before contacting anyone for shipping costs. The freight company will calculate the exact mileage based on the actual mileage or short distance mileage. The difference between actual and short mileage is the mileage required to deliver the load. Typically, short-haul miles cost less than actual miles by up to 5%.

While you might be inclined to choose shipping rates based on short mileage, keep one thing in mind. Carriers who pay actual miles are generally considered higher-paid freight employers. These high-paying companies are able to attract higher-quality drivers who are more experienced and ready to work with the company long-term. This means for you usually a more specialized fleet to handle your freight and represent your brand in front of your customers.

Contact a shipping agent

You can contact individual shipping companies or independent contractors to obtain shipping charges for your shipments. However, time is of the essence, and you want to determine shipping quickly to avoid last-minute shipping surcharges. The easiest way is to contact a freight forwarder such as TJ chinafreight. We'll do the heavy lifting for you to shop around. Our team, working in over a hundred countries around the world, is always ready to help you. This enables you to get the most competitive price possible.

Make sure your load

Whether you hire a freight carrier or work with a shipping agent, you need to protect your cargo. This is where cargo insurance comes in. The shipping company will have its own liability insurance. However, you also need to make sure that the person you choose to ship the goods has adequate cargo coverage to cover the value of the goods you ship. If your load values ​​exceed your coverage limits, consider increasing your coverage.

/ By tjchinafreight ivy / Shipping

Oil prices rise again as supply worries mount

Oil prices rise again as supply worries mount
Oil prices rise again as supply worries mount

Oil traders' worries about supply shortages intensified on Thursday and pushed West Texas Intermediate (WTI) prices higher even as the dollar rose and the U.S. government announced it would buy back oil from the state's reserves as early as this fall. to the highest level since March.

By Thursday's close, WTI was up 45 cents at $108.26 a barrel, while Brent crude was up 76 cents at $110.90 a barrel.

Oil benchmarks remain in backwardation, with the spread between the latest two Brent December futures contracts at nearly $13 a barrel on Thursday, more than triple the spread at the start of the year.

OPEC and its allies agreed to increase nominal output by 432,000 barrels per day (bpd) in June. Fatih Birol, executive director of the International Energy Agency, said OPEC could release more oil reserves if needed.

Ajay Parmar, senior oil market analyst at ICIS, said in a research note,

OPEC+ is unlikely to supply the market with additional oil to address the supply crunch as they are happy to see oil prices stay above $100/bbl and they are expected to slowly add oil in 2022.

Another concern for traders is that shale oil has become more expensive to drill and prices have risen sharply. CEOs are reportedly raising annual spending plans to keep crude and natural gas production on track.

APA Corp CEO John Christmann said,

Increasing U.S. oil production will be challenging and financially inefficient given supply chain bottlenecks and shortages of oil equipment and oilfield workers.

Fiona Cincotta, senior market analyst at City Index, said of Thursday's crude oil trading:

Many factors on the supply and demand side are at work, so oil prices fluctuate again. But the market hasn't fully factored in the impact of the EU's ban on Russian oil (voting is still underway), so losses in the oil market may be limited.

/ By tjchinafreight ivy / Shipping

Has the inflection point of the shipping industry reached?

Although Maersk still achieved good results in the first quarter of this year, this was mainly due to a large proportion of long-term contracts with high freight rates. In addition, the company and the Danish Investment Bank said that the inflection point of the container shipping industry may be coming.

Has the inflection point of the shipping industry reached?
Has the inflection point of the shipping industry reached?

Maersk successfully wins more long-term contract customers

For Maersk, although inflation and rising oil prices have led to an increase in unit transportation costs and a downward trend in freight volume, more and more customers choose to sign long-term contracts with higher freight rates, which stabilizes Maersk's current and future 's earnings. Maersk Chief Executive Søren Skou said in a Wednesday press conference: “Our first quarter financial performance was strong, and combined with a negotiated increase in long-term contract prices by an average of $1,400/FFE, our revenue this year is conservatively estimated to be better than $10 billion increase last year.”

He stressed that so far, Maersk has signed long-term contracts with 71% of its customers.

However, the marginal benefit is limited. "Our earnings can go up to another 80%," Skou said. "We also need some cash for revenue flexibility, but I still expect our earnings to continue to go up to 80%."

Very high customer satisfaction

Maersk's first-quarter performance set a new record, but behind it was a 6.7% drop in shipping volumes in the first quarter, a significant increase in shipping costs, and a 71% increase in average freight rates.

The first-quarter financial performance of other liner companies is estimated to be on par with Maersk. It's clear that ocean freight customers still have to pay much more than before to get their goods shipped around the world.

DSF: Historic growth is coming to an end

Another shipping investment bank, Danish Ship Finance (DSF), which is also located in Denmark like Maersk, showed in its latest semi-annual forecast report that there are clear signs that the historical growth period that will promote the development of the container shipping market and generate huge profits is coming. Finish.

The agency said in its latest forecast report that in the short term, the currently murky demand outlook and growth in available capacity could put pressure on container freight rates and used container ship prices. Over the longer term, the market deterioration will accelerate with the influx of ships above 12,000 teu and a weaker demand outlook. This could put significant pressure on most container markets, especially raising the risk that vessels owned by tonnage suppliers will no longer be able to secure contracts. "

/ By tjchinafreight ivy / Shipping

What is Electronic Export Information (EEI)?

What is Electronic Export Information (EEI)?
What is Electronic Export Information (EEI)?

EEI is data that must be submitted through the Automated Export System (AES) for shipments from the United States to a foreign country. The filing includes information about the sender and recipient of the goods, as well as information about the exported goods. The Census Bureau uses these documents to calculate U.S. trade statistics, and Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS) use the data to help ensure compliance with U.S. export regulations.

There are various nuances regarding the EEI application. Therefore, it is important to understand how the EEI reporting requirements apply to your shipments - when you need to declare and when your shipments are exempt from these requirements.

General EEI filing requirements

The EEI must be submitted with shipments from the U.S. to foreign destinations if any of the following applies:

  • Shipping a single item or item worth more than $2,500. (Note: Goods shipped from the U.S. to Canada are exempt from this requirement.)
  • The shipment contains goods that require an export license or license, regardless of value.
  • Goods are subject to International Traffic in Arms Regulations (ITAR) (link is external), regardless of value.
  • Shipped as a self-propelled vehicle.
  • When exporting "600 Series" items, (i.e. "xY6zz" format for items on the Commercial Control List (CCL) that were previously regulated by the United States Munitions List (USML).
  • Export under license exception Strategic Trade Authorization (STA) (link is external).
  • Shipments to China, Russia and Venezuela for military end use, regardless of value or content.
  • Goods contain rough diamonds, regardless of value (HTS 7102.10, 7102.21 and 7102.31).

Who submits the EEI?

In standard export transactions, the U.S. Principal Interested Party (USPPI) is responsible for submitting the EEI through AESDirect. However, USPPI may provide its freight forwarder (or other third party) a Letter of Authorization (POA) or written statement authorizing them to prepare and submit an EEI on their behalf. (In most cases, the USPPI is the same as the exporter.)

However, in a routed export transaction, the Foreign Principal Interested Party (FPPI) must provide a POA or other written authorization to submit the EEI to the USPPI or U.S. Authorized Agent. (In most cases, the FPPI is your ultimate consignee or foreign customer.)

/ By tjchinafreight ivy / Shipping

What is Shipper’s Export Declaration (SED)

What is Shipper's Export Declaration (SED)
What is Shipper's Export Declaration (SED)

The U.S. Shipper Export Declaration (SED) is a standard U.S. government form for all U.S. exports valued at $2,500 or more. It has been superseded by the Electronic Export Information Form (EEI).

If the value of a single item in a U.S. export exceeds $2,500.00, an EEI must be submitted to the U.S. Census Bureau. The U.S. Census Bureau uses the EEI to compile trade statistics and enforce export controls.

The Census Bureau requires exporters to complete the SED for two main purposes:

Fulfilling obligations to collect U.S. export data, including the export value of each commodity.
Help ensure compliance with U.S. export regulations that require exporters to provide export license information.

The FTR requires exporters to complete SED for shipments with a merchandise value exceeding $2,500 per Schedule B number and for mail-in shipments with a value of at least $500. SED is required for all shipments that require an export license or are destined for embargoed countries, regardless of value.

How to use the export declaration?

Any U.S. exporter (or freight forwarder) must complete Form 2575-V required by the U.S. Department of Commerce and submit it to U.S. Customs at the port of export. If the value of the exported goods is $2,500 or more, or the value of the mailed goods is $500 or more, the individual must make the necessary filings. This form must be completed for any shipment to an embargoed country or that requires an exporter's license. The U.S. Census Bureau uses this form to compile trade statistics and enforce export controls. The Automated Export System (AES) allows shippers to make the necessary declarations online.

According to the Census Bureau, more than half of all SEDs submitted by exporters contain errors, making accurate data collection difficult. In the mid-1990s, in an effort to improve data accuracy and ease of data collection, the Census Bureau, in partnership with what is now the Bureau of Industry and Security (BIS) and the Department of State, introduced electronic collection of SED information through the Automatic Export System (AES).