/ By tjchinafreight ivy / Shipping

Stranded Evergreen container ship escapes trouble

After more than a month of salvage work, the container ship "EVER FORWARD" (long-haul ship) finally got out of trouble.

Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.
Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.

Rescue operations

On March 13, the long-haul ship deployed on the Evergreen Asia-US East AUE route ran aground in the Chesapeake Bay. After multiple salvage failures, the salvage team unloaded more than 500 containers from the vessel and successfully towed the vessel away from shore using high tide on Sunday morning.

According to the Wall Street Journal, the long-distance ferry has become a local tourist attraction in the past few weeks. Tourists drove miles to a small park on the Maryland coast to watch the stranded container ship and its rescue efforts.

Ever Forward will be towed to Annapolis Anchorage for inspection, the release said. There, it will reload containers offloaded from the hull and continue on to its next port of call, Norfolk, Virginia.

How do you view this event?

"The breadth and complexity of this response is historic because an event like the Forever Forward stranding is rare in its type and duration," said Capt. David O'Connell, commander of the Coast Guard in the National Capital Region of Maryland. Say. "It was the collaboration of each response agency, Evergreen Marine Corporation and dedicated responders that allowed Ever Forward to successfully refloat while keeping the public and responders safe, reducing the potential for contamination, and minimizing economic impact
ring. "

Evergreen issued a thank you announcement

On April 17, Evergreen issued an announcement that "the long-distance wheel was successfully rescued". The announcement stated:

Evergreen expressed its sincere thanks to the rescue team, the U.S. Coast Guard, the Maryland State Government and all walks of life for their assistance and concern. After more than a month of hard work, they finally overcome all difficulties and the freighter successfully escaped.

In addition, Evergreen has declared general average for this stranding accident. The owner of the cargo on the ship and the joint operating partner using the space must provide the necessary guarantees and documents to the general average adjustment company in accordance with the general average adjustment rules, so that the delivery of the goods can be smoothly handled after the goods arrive at the port.

/ By tjchinafreight ivy / Shipping

Shipping from China to Kenya: The Ultimate Guide

We have extensive experience in shipping from China to Kenya. We provide sea and air freight services from China to Kenya. If you want to ship from Kenya to China, we also offer that service at a low price.
Due to the lack of customs policy knowledge, many importers face some problems in customs clearance. Our clients never face any customs clearance issues. We have our own team of experts to help our clients ship their goods from China to Kenya by professionally completing all formalities in the customs department.

Two crossed national flags on wooden table
Two crossed national flags on wooden table

Shipping from China to Kenya.

Air Freight from China to Kenya

air freight
air freight

There is no doubt that air freight is the fastest shipping method in the world.
In international shipping, air freight can ship your items from China to anywhere in the world within five business days.
For Kenya, it can be even shorter - like it takes three days to ship your items from China to Kenya.
This is in stark contrast to ocean freight, which can take a month or more to ship items from China.
Obviously, in this case, air freight can save you a lot of waiting time.
Now, besides speed, there are more reasons for you to choose air freight from China to Kenya.

Sea freight from China to Kenya

LCL shipping from China to Kenya

LCL stands for less than container load.
You can use this shipping method if your cargo is not large enough to fill a 20" or 40" container.
Here, your shipment will be consolidated and shipped with other shippers to Kenya.
After the goods arrive at the destination terminal in Kenya, they will be separated and handed over to their respective owners for customs clearance.
The LCL shipping note is an economical alternative to transporting cargo that cannot be filled in a full container.
It is also popular among first-time shippers.

FCL from China to Kenya

If you have a lot of cargo that can fit into a 20" or 40" container, FCL shipping is ideal.
The word FCL stands for Full Case Load, which is basically the opposite of LCL.
In this shipping method, the items in a single container belong to one shipper. This means that if you have enough items to fill a container, whether it's 20" or 40", you should book a full case.
Note, however, that in FCL shipping, the container does not have to be fully loaded to be a FCL.
The term logistically means that the shipper has exclusive rights over the entire container.
This means you can book and ship FCL even if you don't have enough cargo to fill a shipping container.
The advantage of this is that it is faster and safer than LCL as there is less risk of damage and loss of cargo.

Door-to-door shipping from China to Kenya

Door-to-door shipping is another way you can explore shipping goods from China.
This mode is exactly the sound its name suggests.
This is a service where your goods are picked from a Chinese supplier's warehouse and delivered directly to your doorstep in Kenya.
Door-to-door shipping is more expensive than the standard shipping methods port-to-port or door-to-port.
However, it is an excellent option for importers with busy schedules.
Choosing door-to-door can help you not have to focus on other business matters while you wait to ship?

Import restrictions on Kenya

Kenya prohibits the import of the following items:

  • Sexual content, whether it's books, cards, lithographs, or prints that are told to contain obscene content.
  • Fake currency
  • Matches made with phosphoric acid ingredients
  • Unauthorized items bearing the insignia or insignia of a partner country, or items bearing insignia or weapons similar to those of the partner country.
  • Distilled beverages containing essential oils or chemical products, such as star incense, benzaldehyde, salicylates, absinthe, and
  • Narcotic Drugs
  • Hazardous Waste
  • All soaps and cosmetics contain mercury
  • Used tires for commercial light vehicles and passenger cars.
  • All kinds of counterfeit goods
  • Pesticides and industrial chemicals such as dichlor, DDT, lindane, mercury compounds, fluoroacetamide and crocidol,

In conclusion

As you can see from this guide, shipping from China to Kenya is not difficult after all.
All you need is a willingness to learn and do your due diligence before making any deal.
Also, you need to work with a very reliable freight forwarder in China for successful shipments.
In this regard, TJ china freight is here for you.
We will provide you with the fastest, most reliable and most affordable shipping service from China to Kenya

/ By tjchinafreight ivy / Shipping

Shipping from China to Vietnam

German and Chinese flag pair on desk over defocused background. 
German and Chinese flag pair on desk over defocused background. 

Shipping from China to Vietnam

Sea freight from China to Vietnam

Sea freight from china to vietnam
Sea freight from china to vietnam

LCL (LCL)

By LCL shipping, your cargo shares container space with other companies' products imported from China to Vietnam. LCL is often the most cost-effective method for businesses shipping smaller shipments.

Full Container Load (FCL)

With FCL shipping, you have exclusive use of the shipping container. Your shipment will be completely sealed in the container from origin to destination. FCL shipping is not only faster than LCL, but also cheaper.

Air freight from China to Vietnam

Air freight from china to vietnam
Air freight from china to vietnam

Air freight is by far the fastest way to export from China to Vietnam. Some shipments can be completed within four days. However, this is the most expensive shipping method.

Trucking from China to Vietnam

Now, let me introduce you to trucking from China to Vietnam.
You can use it if you want to ship goods from Yunnan Province to Vietnam.
Trucking from China to Vietnam is very flexible.
This is one of the main advantages.
For example; you can ship to very small towns without airports, oceans or rail lines.
With this, TJ chinafreight we can provide door to door shipping from China to Vietnam.
That is, you can visit places within Vietnam.
guess what?
This will work in your favor - cost-effective, convenient and reliable trucking from China to Vietnam.
The process here is very simple.

How long does it take to ship goods from China to Vietnam?

The time it takes to ship goods from China to Vietnam, as well as the price, are often important factors in determining the shipping method.

Of course, air freight is the fastest option, with transit times between China and Vietnam ranging from four to eight days. On the other hand, shipping time by sea can vary greatly depending on the distance between the origin and destination ports. You can expect the shipping duration to be between 7 and 31 days.

The following are examples of transit times for routes operated by Shipa Freight between China and Vietnam:

Shanghai to Ho Chi Minh City - 8 days FCL, 14 days LCL
Guangzhou to Ho Chi Minh City - 14 days FCL
Shenzhen to Ho Chi Minh City - 24 days FCL
Huangpu to Ho Chi Minh City - 24 days for FCL, 16 days for LCL
Lianyungang to Haiphong - 31 days FCL
Jiangmen to Haiphong - 7 days FCL, 5 days LCL
Shanghai to Haiphong – 13 days FCL, 7 days LCL
Dalian to Ho Chi Minh City - 31 days FCL
Qingdao to Haiphong - 7 days FCL
Tianjin to Haiphong - 13 days FCL
Zhongshan to Ho Chi Minh City - 27 days FCL

While the flight from China to Vietnam only takes a few hours, the entire shipping process takes days. The transit time for air cargo includes customs and security inspections, as well as loading and unloading of the cargo.

Below is an example of transit times for a typical air freight route between China and Vietnam:

Shanghai to Ho Chi Minh - 4 days
Shenzhen Ho Chi Minh – 8 days
Shanghai to Hanoi - 5 days
Beijing to Hanoi - 8 days
Guangzhou to Hanoi or Ho Chi Minh - 7 days

China and Vietnam Customs Clearance

Clearing customs can seem like a daunting process, especially if this is your first time exporting from China to Vietnam. A freight forwarder can take the load off you by providing the necessary guidance and expertise to ensure your shipments comply with the rules.

What is the customs clearance process for goods from China to Vietnam?

you have to provide information about certain things,

  • Origin and destination of the goods
  • Importers and Exporters Tax Information
  • Package quantity, volume, weight and product description
  • Tax payable

You need to provide the following documents,

  • Commercial invoice
  • Bill of lading
  • Packing list
  • Any required proof (for restricted items and special approvals)
/ By tjchinafreight ivy / Shipping

Japanese shipbuilders’ orders hit a six-year high in 2021

The surge in demand for bulk carriers has driven the number of orders received by Japanese shipping companies in fiscal 2021 to a six-year high.

It is the scenery of the Gulf region of urban area of Japan.
It is the scenery of the Gulf region of urban area of Japan.

April 12

The Japan Ship Exporters Association (JSEA) released the latest data on the number of orders received by Japanese shipbuilding companies in fiscal year 2021 (April 2021-March 2022). In the last fiscal year, the number of orders received by Japanese shipbuilding companies reached 313 ships of 14.2992 million GT, a year-on-year increase of 59.8%, and the year-on-year increase for the second consecutive year. This is also the year since the 2015 fiscal year (2018 million GT). The number of orders received exceeded 14 million GT for the first time.

According to JSEA data, orders received by Japanese shipbuilders in fiscal 2021 increased by 136 vessels to 313 vessels, an increase of 77% compared with 177 vessels in fiscal 2020. Among them, the order volume of bulk carriers increased by 123 to 218, a sharp increase of 129% from 95 in fiscal year 2020, and the proportion increased from about 50% to 70%. Orders for cargo ships such as container ships increased by 17 to 69, a 33% increase from the 52 in fiscal 2020, of which 43 were bulk container ship orders. The number of tanker orders decreased by 5 to 24, and the orders for VLCC, LPG and product oil tankers all declined.

March this year

The number of orders received by Japanese shipbuilding companies was 49 ships of 1,827,490 GT, a year-on-year increase of 75%, and a year-on-year increase of 21.2% in terms of tonnage, setting the highest monthly order record since June 2021, ending the three consecutive years since December last year. month's decline.

According to JSEA data, new ship orders received by Japanese shipbuilders in March included 13 general cargo ships and 36 bulk carriers. Among them, 13 cargo ships include 8 container ships, 3 general cargo ships and 2 ro-ro ships, with a total of 627,990 GT; 36 bulk carriers are 21 Handysize, 11 Handysize, 2 Panamax, 1 Cape of Good Hope and 1 ore carrier, totaling 1,199,500 GT.

The first 3 months of this year

Japanese shipbuilding companies received a total of 73 orders of 2,782,090 GT, down 24.6% year-on-year, including 16 general cargo ships (785,980 GT), 55 bulk carriers (1,963,410 GT), 1 oil tanker (30,600 GT) and 1 other ship (2100 GT).

By the end of March 2022

Japanese shipbuilding companies have a total of 411 orders of about 19.01 million GT, which is lower than the 18.5 million GT at the end of last month, an increase of 4.6% compared with the end of February, and the first monthly increase in three months. At present, the number of orders held by Japanese shipbuilding companies is approximately equivalent to 1.9 years of workload, and gradually recovers to a 2-year period close to the normal level.

/ By tjchinafreight ivy / Shipping

What are the ways of China’s logistics line to India?

China and India are geographically close, and the exchanges and trade between the two countries have been very good since ancient times. Their closeness is also the reason for multiple lawsuits between the two countries. In this day and age, management conflicts continue in Arunachal Pradesh and Aksai Chin regions in North India/East China. Arguably, they prefer to cooperate rather than feel concurrent with each other. Fortunately, through the annual BRICS Forum, they are easing relations and achieving better common development.

There are four ways to export from China to India: express, sea freight , land and air freight.

Express is a good way to export to India. It has various express methods such as DHL, FEDEX, TNT, etc. We will not introduce them one by one, and there will be a detailed introduction in the future. The cost of the special line in India is generally calculated as follows: RMB/KG times the weight plus the additional cost of delivery (usually sent to remote areas). It should be noted that if the Indian special line has tariffs paid by the recipient, the recipient refuses to pay the tariff and it will be automatically changed to be paid by the sender. The tariff will be reimbursed and an additional handling fee will be charged. Make a formal declaration. The packaging requirements for express delivery are similar to our usual express delivery, but one thing to note is that for extra small express goods (such as small samples), a certain volume of wooden boxes or carton packaging (with filler pads, etc.) must be added. Afterwards, the total volume length, width and height of the entire express shipment shall not be less than 40CM, and the smallest side shall not be less than 5CM. Note: India is not allowed to import beef milk and related dairy products because cows are protected animals in India! Haochuan Logistics also has a service that provides customers with fast packaging and inspection. The advantages of express delivery are fast timeliness, wide range, many goods that can be sent, full logistics tracking and control, and low packet loss rate.

In addition to express, sea and air transportation, these two lines have many customers and complete services, most of which include double clearing services.

First of all, we need to understand what is the double-clearing line. The Indian double-clearing line generally refers to the customs declaration when the goods are sent to India, and the customs clearance when they are imported after reaching India. Among them, shipping Shuangqing is an integrated transportation route that relies on ports and runs through the sea and land, including domestic and overseas customs clearance, export, import of destination countries, tax, and door-to-door one-stop logistics services. India special line is a special transportation route developed by logistics companies according to the situation of customers transporting goods to India. It has complete services and a high degree of integration, which can reduce a lot of trouble. Among them, sea and air transportation are the most perfect. The characteristics of sea transportation are that the transportation volume is large and the cost is low, but the time required is relatively long; the characteristics of air transportation are the transportation time period, the amount of goods is larger, but the price is higher than that of sea transportation, and there are more restrictions on commodities. The domestic Shuangqing line to India generally takes about a month to arrive.

The customs process in India is one of the most onerous in the world and applies to all types of goods and countries of origin. India's tariff barriers are also quite high. But for an emerging country, it's common.

India's land transportation is the cheapest, because China is not far from India, so many people choose land transportation. The amount of land transportation is large, but the timeliness is very slow. Generally, it takes more than 15 days. Some goods that require fast aging are not suitable for travel. For land transportation, merchants can choose different transportation methods according to different needs to reduce the cost of transportation. It is worth noting that the tariffs in India are very high, and merchants should prepare psychologically in advance.

/ By tjchinafreight ivy / Shipping

Maersk announces formation of an air cargo company

On April 8, Maersk issued an announcement on its official website, announcing the establishment of an air cargo company, Maersk Air Cargo, as its main air cargo business, to meet the logistics needs of customers through integrated logistics.

The company, which owns the world's largest container shipping company, said its new Maersk Air Cargo business will be operational in the second half of the year, while Maersk has selected Billund Airport, Denmark's second largest airport, as the air cargo hub for Maersk Air Cargo, which operates daily Both flights create multiple jobs in the region. It will use Denmark's Billund Airport as its main hub and offer daily flights.

Jan Hessellund, CEO of Billund Airport, said: "We are very proud to have been selected as Maersk's European air cargo hub and we look forward to taking our collaboration to new heights."

The new air carrier is the result of existing in-house aircraft operator Star Air transferring its operations to Maersk Air Cargo.

Last year, the company announced it had purchased two new B777 freighters, due for delivery by Boeing in 2024, and leased three B767-300 freighters, which will enter service next year through ATSG's leasing arm, Cargo Aircraft Management. Send your goods from China to anywhere in the world

Maersk said that Maersk Air Cargo's air freight capacity, which is Maersk's controllable capacity, is designed to make the supply chain more flexible and intuitive. When combined with ocean freight, inland, warehousing and customs services, it provides another key link in Maersk's strategy to become a global integrated logistics provider.

"Maersk Air Cargo is an important step in Maersk Air Cargo's strategy as it will allow us to offer our customers a truly unique set of solutions combining air cargo with other modes of transport. We see, both now and in the future, the The demand for air cargo is growing, as is the need for end-to-end logistics, so it is important for us to strengthen our controllable capacity and further advance our air cargo strategy,” said Torben Bengtsson, Global Head of Maersk Air and LCL . Get Air Freight Services

/ By tjchinafreight ivy / Shipping

Import and export freight declaration guide

1. The transaction method should be accurate

According to the requirements of the "Customs Declaration Form Filling Specification", there are 7 types of transaction methods that can be filled in: CIF, C&F, FOB, C&I, market price, advance position, EXW. The common ones are CIF, C&F, FOB, EXW. Among them, CIF (CostInsurance and Freight) cost plus insurance and freight, C&F (Costand Freight) cost plus freight are two transaction methods, and the freight is paid by the seller, and FOB (FreeOnBoard) is delivered at the port of shipment. EXW (ExWork) EXW (designated place) two transaction methods, the freight shall be paid by the buyer.

2. EXW freight needs to be complete

The "Shipping" column should be filled in:

The transportation cost before the imported goods arrive at the import point in my country before unloading
The transportation cost after the export goods are loaded to the output point in my country

If the imported goods are traded by FOB, the "Freight" column should be filled in with the actual transportation costs paid before the goods arrive at the Chinese port from the overseas delivery port; if the imported goods are traded by EXW, the "Freight" column should be filled in before the goods are delivered from the overseas delivery point to the Chinese port. The transportation cost actually paid; if the transaction is made in CIF or CFR, and the transaction price includes the aforementioned transportation cost, the "Freight" column is exempt from reporting.

3. Miscellaneous fees are filled with positive and negative
When an enterprise declares to the customs, the transportation surcharge can be filled in the miscellaneous expenses column of the customs declaration form. Such as common demurrage charges, should be filled in the miscellaneous charges column.

4. Demurrage distinction is important

Demurrage refers to an agreement to be paid by the charterer to the shipowner due to the failure to unload all the goods within the specified time, resulting in the ship continuing to berth in the port, increasing the shipowner’s expenses in port and suffering loss of shipping time. payments.

Demurrage occurs before the cargo is unloaded, that is, if the demurrage has already occurred at the beginning of the actual unloading of the goods, the enterprise shall apply to the customs in writing and provide relevant documents, and there are objective quantitative data on the delay before and after the loading and unloading. In the case of accurately distinguishing the demurrage charges, only the demurrage charges incurred before the loading and unloading of the goods are included in the dutiable value of the imported goods (that is, the demurrage charges incurred after the loading and unloading are not included in the customs value).

Demurrage occurs after the goods are unloaded, that is, if the demurrage has not yet occurred at the beginning of the actual unloading of the goods, it will not be included in the dutiable value of the imported goods.

5. The dispatch payment is normally not deducted

Dispatch fee means that the unloading of the cargo is completed in advance within the specified time, which shortens the life cycle of the ship, and the shipowner returns the agreed payment to the charterer.

The consignment fee shall not be deducted from the dutiable value of the imported goods after the goods are loaded and unloaded at the place of import.

If the dispatch fee occurs when the goods are loaded at the exporting place and is returned to the buyer by the shipowner, the fee can be deducted from the dutiable value of the imported goods.

6. Pay attention to surcharges when oil prices rise

Fuel surcharge BAF (BunkerAdjustmentFactor) or BS (BunkerSurcharge), also known as FAF (FuelAdjustmentFactor), is an additional surcharge charged by the ship to compensate for the increase in fuel costs without adjusting the basic freight rate due to the increase in fuel prices. fee. Japan and Australia routes can be represented by EBS, and routes in Africa and Central and South America can be represented by EBA.

The emergency fuel surcharge EAS (Emergency Adjustment Surcharge) means that if the fuel price suddenly rises again when the fuel surcharge has been levied, the ship will also increase the fuel surcharge in addition to the normal fuel surcharge.

Start your journey and see more shipping services.

/ By tjchinafreight ivy / Shipping

McKinsey heralds bad news for shippers

Shippers must prepare for events in which the tight container market may not normalize until 2024, according to a new analysis by McKinsey & Company. But the consultancy told ShippingWatch that shipping rates could end up being 50% higher than pre-pandemic figures.

The container market has been strained since mid-2020 due to the huge demand for goods in the United States, port closures due to the pandemic, container shortages and extreme congestion at the world's largest and most important container ports.

The result of the tight market is the soaring of container freight rates. The revenue and profit of container shipping companies in the past two years have experienced historic growth. Last year, the total revenue of the top ten shipping companies exceeded 100 billion US dollars. The punctuality rate has fallen to its lowest level in more than a decade.

Some shipper companies, which are customers of container shipping companies, have not stopped complaining about these situations for a long time, and they even believe that container shipping companies should be more strictly regulated.

But this recent McKinsey report throws cold water on shippers.

McKinsey, one of the world's largest management consulting firms, expressed its views on the current container shipping market in a report entitled "Navigating the current disruption in containerized logistics". A large number of new ships have been ordered to expand capacity, but the normalization of the container shipping industry may still be delayed until the first quarter. If the situation is worse, normalization of the market may take until after 2024.

McKinsey also noted that container freight rates will remain high for most of 2022, while disruptions to the container logistics supply chain will continue.

Steve Saxon, a McKinsey partner who is now a container market analyst based in McKinsey's Shenzhen office, said that if you asked us a few months ago for our views on the future of the container industry, we might also lean towards a positive (recovery) view. But right now, McKinsey is leaning more toward a pessimistic outlook -- bad news from a shipper's perspective.

McKinsey proposes four possibilities for the future development of the container shipping market.

In the most optimistic case, the container shipping market may return to normal in the third quarter of 2022. Normal freight volumes, normal capacity offers, and normal freight rates.

But McKinsey also said that the most optimistic scenario may not be possible.

/ By tjchinafreight ivy / Shipping

FOB Shipping Point vs. FOB Destination

Container ship in the harbor in Asia 

International business terms (incoterms) were designed by the International Chamber of Commerce (ICC) to simplify international trade by creating a common standard language, a globally recognized list of terms related to the international transport and transport of goods.
Importers and exporters need to be proficient and proficient in many terms. Some terms are more common than others, such as Free On Board (FOB), Free Carrier (FCA) and Ex Works (EXW). FOB, while common, is largely misunderstood.
Although their language is largely drafted in legal language, it is the responsibility of all parties involved in a shipment to ensure that they understand all Incoterms, otherwise a simple shipment can turn into a costly accident .

Incoterms are important for several reasons. If you find yourself wondering what FOB means in shipping, be sure to take the time to understand FOB shipping

Free shipping on board

The FOB point of dispatch, also known as the FOB origin, is when title and responsibility for the goods pass from the seller to the buyer when the goods are placed on the delivery vehicle.
Since the FOB shipping point transfers title to the shipment of the goods when they are placed at the shipping point, legal title to those goods passes to the buyer. Therefore, the seller is not responsible for the goods during delivery. FOB Shipping Point is a further limitation or condition of FOB as liability changes hands at the seller's shipping terminal.

For example, suppose that ABC Company in the United States purchases electronic equipment from its supplier in China, and the company has a FOB point-of-ship agreement. If the nominated carrier damages the package during delivery, ABC Company will be solely responsible and cannot claim compensation from the supplier for the loss or damage. Suppliers are solely responsible for bringing electronic equipment to the carrier.

Free destinations on board

Conversely, for FOB destinations, title transfers at the buyer's loading dock, PO box, or office building. Title to the goods passes from the seller to the buyer once the goods have been delivered to the place designated by the buyer. Therefore, the seller legally owns the goods and is responsible for the goods in transit.

Types of free destinations on board

  • FOB freight prepaid and allows the named seller to be obligated to pay the freight and have the goods in transit. The seller bears the risk of loss of or damage to the goods in transit. Title to the goods passes to the buyer at the buyer's place of business.
  • FOB shipping prepaid and adding the specified seller is obligated to pay shipping. However, the seller charges the buyer for shipping. The seller bears the risk of loss of or damage to the goods in transit because the seller owns the goods in transit. Title to the goods transfers to the buyer's place of business.
  • FOB freight collect specifies that the buyer must pay the freight upon receipt of the goods. However, the seller bears the risks associated with shipping the goods because the seller still owns the goods during the shipping process.
  • FOB freight collect specifies that the buyer must pay the freight. However, the buyer deducts the fee from the seller's invoice. The seller is responsible for the goods because the seller still owns the goods during shipping.

Main difference

Another key difference between the two terms is how they are calculated. Since the buyer is liable after the goods are shipped, the company can record an increase in its inventory at this time. Likewise, the seller records the sale at the same time. If the goods are damaged or lost in transit, the buyer can file a claim as the company holds title during delivery.

The accounting rules for FOB destinations have changed. In this case, the seller completes the sale on its records once the goods arrive at the receiving dock. That's when the buyer records the increase in their inventory.

There are also differences in the division of costs. For the FOB shipping point option, the seller bears the shipping costs and charges until the goods arrive at the port of origin.

Once the goods are loaded on the ship, the buyer is responsible for all costs associated with shipping, as well as customs, taxes and other charges. For FOB destinations, the seller bears all costs and expenses until the goods arrive at the destination. Once in port, all costs - including duties, taxes and other charges - are borne by the buyer.

/ By tjchinafreight ivy / Shipping

What is the Low Sulphur Surcharge

The low sulphur surcharge (LSS), low sulphur fuel surcharge or low sulphur fuel surcharge (LSF) is known to be derived from regulations originally agreed by the International Maritime Organization (IMO) in 2012 to reduce sulphur fuel emissions in ports and densely populated The coastline was burnt by cargo ships. Fuels with high sulfur content result in large emissions of sulfur dioxide, which are known to be harmful to public health.
From January 1, 2015, carriers will require ships passing through designated Emission Control Areas (ECAs) to use fuel with a sulphur content of 0.1% or less, a significant reduction from the 1.0% concentration fuel currently used in maritime transport . The Emission Control Area (ECA) to be enforced in 2015 includes the Baltic Sea, the English Channel, the North Sea, and an area 200 nautical miles from the coast of the United States and Canada.

The low sulphur surcharge is a surcharge imposed by the line to cover costs associated with the use of low sulphur fuels compliant with the IMO 2020 sulphur cap.
Despite the use of the term, different shipping lines have referred to it by different names - Low Sulphur Surcharge (LSS), Green Fuel Surcharge (GFS), Emission Control Area Surcharge (ECA), various amounts of low Sulphur Fuel Surcharge (LSF). ! !
All routes are said to be preparing to impose mandatory surcharges in addition to freight and other surcharges in 2019 on all trade routes, especially the ECA area.

Should the low sulphur surcharge be included in the dutiable value?

Article 5 of the "Measures of the Customs of the People's Republic of China on Examination and Approval of the Dutiable Value of Imported and Exported Goods" stipulates that the customs value of imported goods shall be reviewed and determined by the customs on the basis of the transaction value of the goods, and shall include the time from the arrival of the goods to the place of import within the territory of the People's Republic of China. Transportation before unloading and related costs, insurance. Article 35 stipulates that the transportation of imported goods and related expenses shall be calculated according to the expenses actually paid or payable by the buyer.

The low sulphur surcharge is a fee charged by the logistics provider to the relevant parties for the use of low sulphur fuel oil for its ships in the emission control area, which is closely related to the transportation process and is It happened before, so it belongs to the transportation and related expenses described in the "Measures of the Customs of the People's Republic of China on the Verification of the Dutiable Value of Imported and Exported Goods".

Under normal circumstances, if the transaction method of imported goods adopts FOB (free on board) terms, and the low-sulfur surcharge is clearly borne by the consignee of the imported goods, it should be included in the dutiable value of the goods and truthfully declared to the customs. If the transaction method of imported goods is CIF or CNF (cost plus freight) terms, it needs to be determined according to the specific agreement between the buyer and the seller. If it has been included in the freight and related expenses paid by the foreign seller, it will not be included in the customs value; such as If it is not included in the freight and related expenses paid by the foreign seller, and is actually borne by the consignee of the imported goods, it should be included in the dutiable value of the goods and must be truthfully declared to the customs.