/ By TJ China Freight / Cargo • Logistic • Moving • Shipping

How to Calculate Freight Rate for Your Sea Shipping

Sea freight is always considered to be the lowest in cost. For shipping high volume and heavy cargo, sea freight is the most cost-effective and safe logistics solution. Today, we are going to introduce you to how to calculate the sea freight rate. For instance, if you need to import some furniture sets from China to your country, your freight forwarder in China will offer the rates. What aspects should you consider before your confirming a shipment? The answer should be type of service chosen, the time of shipping, the equipment used, etc.

how to calculate the sea freight rate

Calculate the volumetric weight of your shipment

The base of cost calculation in sea freight depends on the type of movement. In general, it is either CBM/Ton or container. For Bulk and Break-Bulk freight, it is in CBM or Ton, the same applies to LCL ( Less than Container Load) shipments. But when the cargo is containerized, it will depend on the shipping containers used.

For shipments calculated by Weight and Volume, in sea freight transport, the ratio is “ 1:1” which means every Ton equals one CBM (Cubic Meter). In formula to calculate the volume:

If the volume of a shipment is 10 CBMs and the weight is 5,000 Kgs (5 Tons) then the 10 CBMs are considered for cost calculations (the chargeable weight is the higher between volume and weight).

How sea freight rate is determined

There are different points to consider when requesting a sea freight quotation. These are the most important ones:

POL (Port of Loading): Where will the sea shipment be originated from. Choosing the right “POL” is going to help in reducing the sea freight rates and pre-carriage (origin country trucking) costs.

POD (Port of Discharge): The seaport where the shipment will be released is a major game-changer for the sea freight cost. Freight rates will vary between carriers for the same destination port.

Commodity: The nature of the cargo itself is important. If the items require climate control we will have to use a reefer container, or dimensions are more than normal shipping containers height. It may need an open-top container which may double the price on certain occasions.

Shipping Container Type: There are many kinds of shipping containers. The most commonly used ones in sea freight are ( 20 ft, 40 ft, 40 HC, 20 RF, 40 RH, and 40 OT). Picking the right container for your cargo will save on the shipping costs big time.

Time of shipping: There are certain parts of the year where sea freight rates spike either because the basic ocean freight rates go up or when sea carriers apply extra charges like GRI (General Rate Increase) or some PSS ( Peak Season Surcharge) and congestion fees, … etc. Therefore, when planning your shipping, it is good to consider this thing to save on the shipping costs.

In sea freight, shipping costs can be either per CBM/Ton, per container (or TEU: Twenty-foot Equivalent Unit), or per shipment. Therefore it is important to calculate the volume and measure the weight properly. For example to move shipment by LCL (Less than Container Load): you will need to pay the freight, CFS charges, Bill of Lading fees, and documentation.

If you are puzzled about how to calculate the sea freight, feel free to contact our professional forwarder team to get an instant quote for shipping from China to your destination cities.

/ 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

Subtle changes in supply and demand, freight rates drop one after another

Supply and demand conditions improved, and freight rates continued to fall. There are many uncertain factors, and the future trend is still unclear.
Recently, the freight rates of major routes in the container shipping market have changed the pace of rising and have continued to decline in the past month. Even so, since the high freight rate in the fourth quarter of last year continued to the first quarter of this year, the current freight rate is still much higher than the same period last year.

Multi-route freight rates drop

According to Drewry data, as of March 17, the World Containerized Freight Index (WCI) was US$8,832.23/FEU, down 3.8% month-on-month and still up 79% compared with the same period in 2021.

In terms of routes, the Shanghai-Rotterdam spot freight rate was US$12,221/FEU, down 4% month-on-month; the Shanghai-Genoa spot freight rate was US$12,619/FEU, up 1% month-on-month; the Shanghai-Los Angeles spot freight rate was US$10,154 /FEU, down 7% month-on-month; Shanghai-New York spot freight rate was US$12,276/FEU, down 5% month-on-month.

On March 18, the China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange was 3301.10 points, down 1.9% from the previous month. Among them, the freight index of European routes decreased by 1.9% month-on-month, the freight index of Mediterranean routes decreased by 0.5% month-on-month, the freight index of US-West routes decreased by 3.8% month-on-month, and the freight index of US-East routes increased by 2.1% month-on-month.

According to the Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange, as of March 18, the composite index closed at 3,613.9 points, a month-on-month decline for 11 consecutive weeks, down 15.3% from the high level at the end of December 2021, and from the end of February. It fell 8.4%.

Judging from the situation of different routes since the end of February, the freight index of the South America east route decreased by 19.3%, the freight index of the South American west route decreased by 16.7%, the freight index of the Middle East route decreased by 17.6%, the India-Pakistan route decreased by 13.7%, and the freight index of the European route decreased by 13.7%. The price index fell 11.7%, the most significant decline. The average market price of the 40-foot TEU after the price increase in the Europe, South America East, South America West and America West routes fell by more than US$1,500/FEU, and the freight rate fell the most. It can be seen that, in the past month, although the freight rates of some routes remained flat or increased slightly month-on-month, in general, they showed a downward trend.

As far as the single-day freight rate is concerned, in early March, the freight rate trend showed a clear inflection point.

According to Xeneta data, recently, freight rates from China to Europe suffered the largest one-day drop since February 2020. On March 1, the average spot rate on the route fell by nearly $500/FEU to $13,340/FEU. This is the first time since September 2021 that freight rates on this route are below $13,500/FEU.

However, the agency also pointed out that the current freight rates on the Asia-Europe route are still at a very high level compared to before the COVID-19 outbreak. In 2018-2020, the average spot freight rate on this route was only US$1,500/FEU.

Based on this, Zheng Jingwen, a senior analyst at the International Shipping Research Institute of the Shanghai International Shipping Research Center, said in an interview with a reporter from China Shipping Weekly that according to the trend of previous years, the freight rate will indeed drop slightly and briefly in the first quarter.

Qian Hanglu, an industry analyst at Ningbo Shipping Exchange, also said: "This is mainly due to the traditional off-season, which makes the overall freight rate of the container shipping market continue to decline from mid-January to late March. For example, in 2019 In 2021 and 2021, the NCFI composite index has experienced a 10-week decline, with a cumulative decline of 25.7% and 19.4%, respectively."

/ By tjchinafreight ivy / International

Different types of letters of credit

What is a letter of credit?

A letter of credit is a guarantee or assurance to the seller that they will get paid on a large transaction. They are especially common in international or foreign exchange transactions. Think of them as a form of payment insurance provided by financial institutions or other accredited parties to the transaction. The earliest letters of credit were common in the 18th century and were called travelers' letters of credit. The most common contemporary letters of credit are commercial letters of credit, standby letters of credit, revocable letters of credit, irrevocable letters of credit, revolving letters of credit, and red-term letters of credit, although there are several others.

Commercial letter of credit
This is a standard letter of credit commonly used in international trade. It can also be called a "Documentary Credit" or "Import and Export Credit". 1 The bank acts as a neutral third party to release funds when all the conditions of the agreement are met.

Standby Letter of Credit
This type of letter of credit is different: it offers payment if something doesn't happen. 2 Standby letters of credit do not facilitate a transaction, but provide compensation in the event of a problem. A standby letter of credit is usually similar to a commercial letter of credit, but only pays if the payee (or "beneficiary") can prove they didn't get what was promised in the agreement. Standby letters of credit are a form of insurance that ensures you get paid, and they also guarantee that services will be performed satisfactorily. They can be used with negotiable letters of credit.

Irrevocable letter of credit.
This Letter of Credit may not be cancelled or amended without the consent of the beneficiary (Seller). This Letter of Credit reflects the Bank's (Issuer's) absolute liability to the other party.

Revocable Letter of Credit.
The bank (issuing bank) can cancel or amend this type of letter of credit at the customer's instruction without the prior consent of the beneficiary (seller). After the L/C is revoked, the Bank shall not assume any responsibility to the beneficiary.

Red Clause LC.
The seller may require prepayment of a letter of credit for an agreed amount prior to shipment of the goods and presentation of the required documents. This red clause is so called because it is usually printed in red on the document to draw attention to the "advance payment" clause of the letter of credit.

Revolving letter of credit
A revolving letter of credit can be used for multiple payments.
If buyers and sellers want to repeat business, they may not want to obtain a new letter of credit for each transaction (or each step in a series of transactions). This type of letter of credit allows a business to conduct multiple transactions using a single letter of credit before the letter of credit expires, and the validity period of the letter of credit may be three years or less.

Negotiable letter of credit
A transferable letter of credit can be transferred from one "beneficiary" (payee) to another. They are usually used when an intermediary is involved in a transaction.

Back to back
Back-to-back letters of credit can be used when an intermediary is involved but a negotiable letter of credit is not suitable.

What are the benefits of using a letter of credit?

A letter of credit places the risk of the transaction on the bank rather than the buyer or seller. They provide a secure payment method that ensures funds get where they need to be. Letters of credit also provide parties with the opportunity to incorporate safeguards, regulations or other quality control measures.

How to get a letter of credit?

Many banks offer letters of credit, so you can get one by contacting your bank's representative. Banks with dedicated international trade or business departments are likely to offer letters of credit. If your bank doesn't offer a letter of credit, it may point you to an institution that does.

/ By tjchinafreight ivy / International

Foreign exchange risk

What is foreign exchange risk?

Foreign exchange risk refers to the possible loss of international financial transactions due to currency fluctuations. Also known as currency risk, foreign exchange risk and exchange rate risk, it describes the likelihood that the value of an investment may decline due to changes in the relative value of the currencies involved. Investors may be exposed to jurisdictional risk in the form of foreign exchange risk.

Where does foreign exchange risk come from?

Foreign exchange risk arises when a company receives payments in one currency but pays fees in another. From the importer's point of view, the risk is that the foreign currency will appreciate because it means they will have to pay more for the imported goods. Instead, for exporters, the risk is that the foreign currency will depreciate against the Canadian dollar. If the exporter's foreign currency depreciates after selling to an international customer, the exporter's Canadian dollar will end up being lower than expected.

Companies are also exposed to foreign exchange risk when they create price lists at the start of the season, long before they invoice foreign customers, or when infrastructure projects require payment after each step of the project is completed. Once a formal agreement is reached with a supplier or customer, the company is at risk.

There is no one-size-fits-all strategy for reducing foreign exchange risk. A company's exposure is affected by many factors, including the volume of imports and exports, whether payment is made at the time of sale or at a later date, the currencies involved, and the countries where customers and suppliers are located.

All currencies fluctuate in value, and the Canadian dollar is no exception. Decisions about major interest rates by Canadian banks, energy prices, geopolitical conflicts, foreign acquisitions of Canadian businesses and many other factors can affect the value of our currency. Predicting currency movements is very difficult, and analysts' forecasts are not always reliable. That's why it's so important for companies to have policies in place to minimize this risk and protect their profitability.

Characteristics of foreign currency export sales

Applicability
Recommended for (a) highly competitive markets and (b) when foreign buyers insist on buying in local currency

Risk
Exporters are at risk of exchange rate losses unless foreign exchange risk management techniques are used

Advantage
Enhanced export sales terms to help exporters remain competitive
Reduce the risk of non-payment due to local currency devaluation

Shortcoming
The cost of using certain foreign exchange risk management techniques Foreign Exchange Risk Management
burden

Foreign exchange risk is divided into three categories:

Transaction Risk: This is the risk a company faces when purchasing products from a company located in another country. Product prices will be in the selling company's currency. If the selling firm's currency appreciates relative to the buying firm's currency, the firm making the purchase will have to make a larger payment in its base currency to reach the contract price.

Conversion risk: A parent company with a subsidiary in another country may face losses when the subsidiary's financial statements (which will be denominated in that country's currency) must be converted back to the parent's currency.

Economic Risk: Also known as forecast risk, refers to the continued exposure of a company's market value to the risk of inevitable currency fluctuations.
Companies exposed to foreign exchange risk can implement hedging strategies to reduce this risk. This often involves forward contracts, options and other exotic financial products that, if done right, can protect companies from unwanted foreign exchange fluctuations.

Currency Exchange Tips

Please be aware of any issues with currency exchange. Not all currencies can be freely or quickly converted into dollars. Fortunately, the U.S. dollar is widely accepted as an international trade currency, and U.S. companies can often ensure payments are made in U.S. dollars.
If the buyer requires payment in a foreign currency, you should consult an international banker before negotiating a sales contract. Banks can advise on any foreign exchange risk associated with a particular currency. The most direct way to hedge foreign exchange risk is forward contracts, which enable exporters to sell a certain amount of foreign currency at a pre-agreed exchange rate, with a delivery date ranging from 3 days to 1 year in the future.
If you can do business entirely in U.S. dollars, you may be able to avoid many of the difficulties and problems associated with currency exchange.

/ By tjchinafreight ivy / Shipping

Ship Delay Warning! Carry out military missions in multiple sea areas and continue to ban navigation

The Maritime Safety Administration of the People's Republic of China recently issued an announcement that from March 30 to April 10, 2022, many sea areas such as the northern Yellow Sea, South China Sea, and Beibu Gulf of the Bohai Strait will be banned for military missions. It may have a certain impact on the shipping schedule of some ports, and the ships will open late and arrive late. Please be prepared for the cargo owner and forwarder.

1. Liaohang Police 34/22, performing military missions in the northern part of the Yellow Sea, Bohai Strait
According to the Dalian Maritime Safety Administration: The northern part of the Yellow Sea in the Bohai Strait will be held at 1600 on March 27 to 1600 on April 10
1) 38-51.7N 121-38.2E;
2) 38-34.2N 121-38.2E;
3) 38-33.9N 121-07.9E;
4) 38-48.2N 121-14.1E
Perform military tasks within the range of the points. No entry.

2. Guangdong Aviation Police 30/22, military exercise in the waters near Shanwei in the South China Sea
According to the Guangdong Maritime Safety Administration: In the South China Sea, from 0800 on March 30 to 1800 on March 31, military exercises will be held in the sea area connected by the following four points:
(1) 22-40-00N 115-17-18E,
(2) 22-40-00N 115-23-18E,
(3) 22-34.00N 115-23-18E,
(4) 22-34.00N 115-17-18E.
Vessels are prohibited from entering.

3. Qionghang Police 0038/22, South China Sea Military Exercise
According to Hainan Maritime Safety Administration: South China Sea, from 0700 on March 30, 2022 to 1900 on April 1, at 19-23.10N 110-52.40E, 19-23.10N 110-56.52E, 19-19.67N 110-52.40 Military training is carried out in the water area connecting the points of E and 19-19.67N 110-56.52E, and it is forbidden to enter.

4. Qionghang Police 0036/22, Beibu Gulf live ammunition training
According to Hainan Maritime Safety Administration: Beibu Gulf, from 0700 on March 30th to 1800 on April 1st, will be at 19-48.00N/108-40.00E, 19-48.00N/108-46.00E, 19-42.00N/108 - 46.00E and 19-42.00N/108-40.00E points to connect the water area for live fire training. No entry.

5. Qionghang Police 34/22, Military Training in the South China Sea
According to Hainan Maritime Safety Administration: South China Sea, from 0730 on March 25, 2022 to 1800 on April 7 at 18-15.0N 110-10.0E, 18-15.0N 110-30.0E, 18-05.0N 110-30.0E Military training is carried out within the water area connecting the points of 18-05.0N 110-10.0E, and it is forbidden to enter.

6. Qionghang Police 33/22, Military Training in the South China Sea
According to Hainan Maritime Safety Administration: South China Sea, from 0900 on March 19, 2022 to 1800 on April 9 at 17-32.0N 108-16.0E, 17-32.0N 109-22.0E, 17-02.0N 109-22.0E , 17-02.0N 108-30.0E and 17-22.0N 108-16.0E military training is carried out within the waters connecting the points, and it is forbidden to enter.

I would like to remind that ships have passed through the above sea areas recently, which may cause some port ships to arrive late and sail later, and the sailing schedule may be delayed. To keep abreast of relevant information, please each owner and forwarder understand each other.

/ By tjchinafreight ivy / Shipping

How to deal with the problem of overweight containers?

There is information on the maximum weight limit on the unpacking door of each container, such as MAX GROSS: 30480KGS. This means that your box with the goods cannot exceed this weight. Tare weight--20GP: 2200KGS, 40: 3.720-4200KGS, some HQ will have MAX GROSS: 32000KGS.
This is the maximum strength that the container body can withstand. If the loading exceeds this limit, the container body may be deformed, the bottom plate will fall off, and the top beam will be bent. All the resulting losses will be fully borne by the loader. At present, most professional container terminals in China have installed automatic weighbridges. Therefore, as long as the container exceeds the weight limit of the container, the terminal will refuse to accept the container. Therefore, it is recommended that you clearly see the weight limit on the container body before packing, so as to avoid unnecessary repacking operations.

Overweight containers are a very serious problem. As container vessels become larger and containers are stacked higher to keep up with the growth of world trade, overweight containers can:

Wrong ship stowage decision
Restocking the container (and resulting delays and costs) if overweight is determined
folded container stack
Containers lost in water (overweight and
overweight container)
Cargo Liability Claims
Chassis damage
ship damage
Vessel stability and stress risk
Risk of personal injury or death to seafarers and shore workers
Service plan integrity compromised
Correctly declare supply chain service delays for container shippers
Confirmed, booked and available loads are closed at the last minute when the actual weight on board exceeds the declared weight and the total cargo weight exceeds the ship limit or port draft limit.
Loss of revenue and earnings
Liability for overweight accidents and fines on the road, and the resulting time and administrative effort and costs to seek compensation from responsible parties
Impairs the optimum trim and draft of the vessel, resulting in compromised vessel efficiency, suboptimal fuel usage and increased vessel exhaust emissions.

What should I do if I am overweight?
This is mainly divided into overweight port area, overweight shipping company, overweight port of destination

1. The shipping company is overweight
Discuss with the shipowner, make up the overweight fee, and the rest will go as normal;

2. The port area has its own regulations for overweight
If you find that you are overweight when entering the port, you need to negotiate with the port area and pay the overweight fee plus manual handling fee or take out the box and repack it;

3. The destination port is overweight
Generally, if the destination port is overweight within a certain range, the fine can be solved; if the overweight is serious, the cranes along the way cannot be loaded and can only be transferred to a nearby port or returned to the original road.

/ By tjchinafreight ivy / Shipping

Biden administration re-exempts 352 tariffs on Chinese goods

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

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

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

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

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

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

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

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

/ By TJ China Freight / Logistic

How To Choose A Good Freight Forwarder?

When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.

What is a Freight Forwarder?

A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.

Tips On How To Choose A Good Freight Forwarder

Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.

1. Do Your Homework And Know What You Need

The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.

You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.

When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.

2. Consider The Freight Forwarder’s Experience And Network

This is non-negotiable!

The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.

Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc.  Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.

With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.

3. Find Out The Services They Offer

By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.

When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.

4. Inquire About Their Permits, Credentials, And Certifications

Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.

Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.

5. What Risk Management Procedures Do They Have In Place?

It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.

A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.

6. What Is Their Customer Service Like?

Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.

Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like.  You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.

Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.

What About Pricing And Rates?

You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.

For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?

What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.

How To Ask For Shipping Rates From Your Freight Forwarder

Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.

To request for a quote from TJ China Freight, the information required include:

1. Product Name.

The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?

2. INCOTERMS Or Terms Of Sale.

Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?

3. Weight And Volume Information.

If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.

4. Address Of The Supplier Or Factory.

If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.

5. The Destination Address Or Port Of Destination.

For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.

6. Your Preferred Shipping Method (Air Freight, Express Freight, Sea Freight, or Train Delivery).

The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.

7. Your Preferred Time of Delivery – How Quickly Do You Want The Shipment To Be Delivered.

If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.

TJ China Freight, Your Best Freight Forwarder In China

As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.

/ By TJ China Freight / Shipping

The freight rates dropped by more than 13%!

Although the new round of new crown pneumonia in Europe represented by the British mutant virus has generally eased, and the congestion of British ports is also showing signs of easing, it will take some time for the European transportation system to fully recover.

At the same time, the goods hoarded before the Chinese New Year have basically been shipped out, and the demand for transportation after the holiday is still recovering. The overall market volume is insufficient, and some voyages have surplus space. Liner companies cut prices to buy goods.

Under the combined influence of the above-mentioned market factors, the freight rates of Asia-Europe routes after the Spring Festival have been declining.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks

 

 

According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Aviation Exchange, on March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was 3,712 US dollars/TEU, which was higher than that on March 5. Compared with 3966 USD/TEU, it is down 6.4%. Compared with the USD 4,047/TEU on February 26, it was down by 8.3%. Compared with the 4281 USD/TEU on February 19, the drop reached 13.3%.

This is also the rate of the Asia-Europe route, which has declined for three consecutive weeks.

The situation of the Mediterranean route is slightly better than that of the European route. On March 12, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 4,020 USD/TEU, a decrease of 5.4% compared with 4,252 USD/TEU on February 19.

The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange also showed a similar trend.

From March 5th to 12th, the NCFI European route freight index was 2871.1 points, a decrease of 6.2% from the previous week. Compared with the 3192.2 points on February 20-26, a drop of 10%; compared with the 3323.4 points on February 13-19, a drop of 13.6%.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks
The trend of NCFI European route freight index

In the same period, the freight index of the NCFI East-West route was 2354.2 points, and the freight index of the NCFI West-South route was 3007.1 points, a decrease of 7.4% and 9.2% respectively from February 13-19.

Entering 2021, the freight rate of Asia-Europe route has experienced an astonishing price increase of 25.8% overnight, and then gradually dropped.

Previously, industry consulting agency Sea-Intelligence had predicted that in 2021, the uncertainty caused by the epidemic would still be very large, and the historically high freight rates would fall.

Lin Shulai, an analyst at Yihailan, analyzed that the market freight rate after the Spring Festival depends on two factors, the operating strategy of the shipping company and the development of the epidemic. It is expected that after the first quarter of 2021, the market is expected to return to normal.