What are the types of export risks?

Political risk

Geopolitical risk, also known as political risk, occurs when a country's government unexpectedly changes its policies, which now negatively affects foreign companies. These policy changes may include things like trade barriers that restrict or prevent international trade.

Some governments will demand additional funds or tariffs in exchange for the right to export items into their home countries. Tariffs and quotas are used to protect domestic producers from foreign competition. It can also have a huge impact on an organization's profits, as it either reduces revenue taxed on exports or limits the amount of revenue that can be earned.

Legal Risk

Laws and regulations vary around the world. What is common practice in one country may not be so in another. As a result, exporting companies may face legal issues related to many areas of business, including customs, contracts, currency, and liability and intellectual property rights related to the products they sell.

One of the best ways to mitigate export legal risk is to engage legal counsel located in a particular country jurisdiction or with proven expertise in dealing with local laws. The last thing a company wants to do is get into a protracted legal battle in an unfamiliar country with local legal issues. Relying on trusted legal counsel can largely avoid or even anticipate and proactively handle potential legal issues.

Economic risk

In markets with less stable economies, consider the possibility of economic changes that could affect your export business.

High inflation

High inflation could mean customers can't pay their invoices on time, or potential customers will be interested in extending their credit terms. The worst-case scenario of high inflation could lead to hyperinflation, which in turn could lead to economic collapse. Sold only on safe terms to avoid default.

Exchange rate fluctuations

The exchange rate is the level at which a country's currency can be exchanged for another. It fluctuates continuously throughout the day, with closing prices for buying and selling published at the end of the day. You can eliminate any exchange rate risk by always selling in GBP.

Your customers may insist on paying in foreign currency. Make sure this is a freely convertible major currency. When you invoice in another currency, you can limit your exposure by fixing the exchange rate using forward foreign exchange contracts. This is a process where you basically determine the current exchange rate to use at a future date. You can discuss this with your bank, or read more about export invoice currency.

Foreign exchange control

The government can impose foreign exchange controls on the buying and selling of local currencies. Today, the countries with foreign exchange controls are mostly emerging markets.

The impact on UK exporters could be delayed payments as the country's central bank won't release foreign currency. Often, these controls lead to a black market in currencies, with two exchange rates: an official market rate and an unofficial market rate. The difference from the official exchange rate is known as the black market premium.

A distinction should be made between situations where the country's central bank is only causing delays, and areas where there are local problems leading to export invoicing and widespread smuggling. You should not engage in any conduct that violates the laws of this market or violates bribery, as the penalties can be severe.

Shipping and Logistics Risk

Making an export sale is just the beginning of the process. Goods sold now need to be delivered to customers in a timely and safe manner. This is where exporters may encounter a range of shipping and logistics risks, which may vary depending on the goods being shipped and shipping requirements. Some items require refrigeration, must not be exposed to excessive heat or cold, or have a shelf life. Other items are very fragile and require careful handling or must be assembled before delivery to the customer. All shipments must be tracked. If something goes wrong, the buyer may try to negotiate a price reduction or reject the shipment altogether.

Reducing transport and logistics risks often involves quality control and careful tracking procedures throughout the process. Specialized transportation and logistics companies can also bring expertise to the job, and some insurance companies provide coverage for damages caused by delays and problems in transit.

Language and cultural risk

Doing business with importers and customers in another country requires a certain level of trust. Differences in language, culture, religion and many other aspects of life require careful handling. For example, when exporters and their customers speak different languages, important details and nuances can be lost in translation.

Different cultural practices affect everything from "normal business hours" to ethical behavior to whether customers are willing to buy a product. In many areas, well-meaning exporters can unknowingly create tensions or offend customers, government officials and others important to timely product shipments and other aspects of the business.

The best way to prevent such problems is to have employees who speak the local language or have experience living in a particular culture or region. Additionally, exporters can focus on building local business relationships in the countries where their products are imported to help resolve issues and increase the exporter’s local connections and presence.

Quality risk

Customers may complain about the quality of these products once the goods are shipped. This may be a genuine objection based on the buyer's specific requirements and expectations. It could also be a way for buyers to gain leverage and negotiate discounts on shipped products after the fact.

One way to deal with quality risk is to hire an independent third party to inspect the shipment before it is shipped. If this is not possible, the exporter can send samples to the importer or end customer so that they can inspect the product themselves and determine if the quality is acceptable before any order is shipped.

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.

What to pay attention to when exporting to India by sea

1. Exporting to India: Challenges

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

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

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

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

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

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

customs clearance - TJ

2. Customs regulations

First of all, all goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, it is necessary to dig out the box at the port or pay a high fee for changing the manifest before transshipment to the inland.

Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, the customs will issue a notice of delivery to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage in customs.

3. Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill in the Bill of Entry in quadruplicate. The first and second pages are retained by the customs, the third page is retained by the importer, and the fourth page is retained by the bank where the importer pays the tax. Otherwise, high detention fees must be paid to the port authority or airport authority.

4. Return regulations

Indian Customs stipulates that the exporter needs to provide the original importer's certificate of abandonment of the goods, the relevant delivery certificate and the exporter's request for return letters and telegrams, and entrust the shipping agent to complete the return procedures after paying the port storage fees, agency fees and other reasonable fees.

If the importer is unwilling to issue the exporter with the certificate of rejection of the goods, the exporter can rely on the letter of the importer's refusal to pay or take delivery or the letter of the importer's non-payment redemption provided by the bank or the shipping agent, the relevant delivery certificate and the seller's request. The letter and telegram for the return of the goods shall be entrusted to the shipping agent to directly submit the return request to the relevant Indian port customs and go through the relevant procedures.

Easily handle international returns

If you sell online, you will inevitably be rewarded. While many online sellers see international sales as a one-way ticket to business growth, few seem to think about international returns.
While cross-border trade is a key focus for online retailers looking to expand sales, it also faces challenges. Specifically, one of the main reasons small and midsize companies shy away from international sales is the fear of returns.
That said, the process is getting easier as governments and postal service operators work together to optimize cross-border e-commerce deliveries and returns.

Take care of taxes and duties

One of the biggest challenges mentioned by small businesses when dealing with international returns is managing taxes and duties. This is because different countries—even states, provinces, republics, and territories—have unique tax laws. Failure to properly calculate taxes can result in delayed shipments, or worse, forfeitures.
In some cases, taxation can be a simple process. For example, there are no taxes or duties on items under $40 shipped from the U.S. to Canada. Others may be more complex and the tools available are invaluable for estimating these potential costs.

Why are products being returned?

A lower rate of return means more profit and more satisfied customers. That's why it's important to find out why a product was returned. Here are some common reasons:

  • Customer receives wrong product or wrong size
  • Product does not match product description
  • Damage to the customer when the order arrives

Of course, the reasons may vary depending on what you sell, your industry, and many other factors.

5 Tips for Handling International Returns

1. Let your customers choose how to return

The first and easiest option for you is to leave the return method to your customers. The only thing that is fixed is the address your client has to send to (that is, your address).
Your customers choose which carrier to ship with and which delivery point to ship the package to. However, this is the least customer friendly solution, so it may cost you switching costs in international online stores.
The advantage is that once you receive the product, you can evaluate it yourself and add it back to your inventory faster.
As an online retailer, you are not reimbursed for returns.
However, if the customer returns their entire order (within the EU), you will have to reimburse the outbound shipping. In addition to that, you can choose whether to let your customers pay for returns. You can make this return method more customer-friendly.
But how?
Extend the return period. Your customers will then become attached to the product or care less about it. This also reduces the chance of returns.

2. Arrangements with International Carriers

If you're shipping a lot, including returns, you can make a lot of deals with international carriers.
A good example is fashion chain Zalando, which has a partnership with DHL for both shipping and returns. By making a custom arrangement with a carrier, you can often not only discuss lower rates, but also get more services from the carrier, such as pickups and returns.
Furthermore, with Sendcloud you can offer multiple shipping methods and optimal integration with local and international carriers. In this way, you can provide a more efficient and budget-friendly return process.

3. Subtly offset return costs for your customers

Our research shows that 74% of European consumers would not reorder from an online store if they had to pay for the return themselves. 77% agree that free returns are more convincing to order from online stores more frequently.
However, if you don't want to incur the return costs yourself but still want some form of service, you have another option. You can add a return label to your order and deduct the return fee from your order refund. This method is allowed since you do not need to be reimbursed for returns.
This is great for customers because they don't have to pay immediately when they return the package. This eases the pain of returns, especially the cost of returns.
More importantly, it makes returns a little easier. 37% of European consumers say they would reorder from an online store if they were offered a quick and easy return process.
So it's also in your favor: your customers will come back to you faster thanks to your easy return policy.

4. Outsource international returns to a local party

Have you ever thought about processing returns through your local party? By doing this, you allow customers to return their products to the party you are working with in the country of sale.
This party specialises in handling consignment/returns and therefore ensures that processes, including administration, run as efficiently as possible.
When there are many packages, the parties can return to your warehouse in large quantities, which is cost-effective. Working in this way also allows you to pay back your customers faster, as the product can be received and evaluated faster locally.
This option is relatively expensive because you are doing external collaboration. However, if you receive a lot of returns (like fashion), it can help you save as much as possible.
Create clear protocols and ensure good connections between your online store, inventory and external parties. When you receive a return notification for a product, you can immediately refund the customer or ship a new product, even before your warehouse receives the order.

5. Easily process returns for you and your customers

Would you rather take your online store's returns process into your own hands?
Then use smart solutions to process returns more efficiently. With the Sendcloud returns portal, you can provide your customers with a simple and smooth returns process.
You can offer other refund options and let your customers decide how to return them using flexible returns.

Top 10 ports in the world! Ningbo Zhoushan Port No. 1.

The marine sector has grown by leaps and bounds over the past few decades, and ports and port facilities are needed to meet these growing demands.
This is why each country's shipping authority is focused on ensuring that its shipping ports are adequate for the needs of industry operators and drivers.
However, even as each country focuses on improving its port infrastructure, there are some global leaders with seaports - bigger and busier than all others.
Interestingly, the busiest port facilities are located in Asia due to the continent's geographic location on important maritime trade routes linking ports in Europe and the Middle East.
Details of the 10 busiest ports in the world are listed below, each with their own uniqueness.

NO.1 Ningbo Zhoushan Port

port of ningbo zhoushan, China

Ningbo Zhoushan Port is the port of Ningbo City and Zhoushan City in Zhejiang Province, China. It is located in the middle of the coastline of mainland China and the south wing of the "Yangtze River Economic Belt". It is an important iron ore transfer base, crude oil transfer base, liquid chemical storage and transportation base in China and an important coal and grain storage and transportation base in East China.

NO.2 Shanghai Port

Yang shan harbor of shanghai, China

Shanghai Port is a port in Shanghai, China. It is located in the middle of the coastline of mainland China and at the mouth of the Yangtze River. It connects the north and south coasts of China and the world's oceans, and then runs through the Yangtze River Basin, Jiangsu, Zhejiang, Anhui, and Taihu Lake Basins. Shanghai Port has established container cargo trade with more than 500 ports in 214 countries and regions around the world, and has more than 80 international routes.
In 2020, the port's annual cargo throughput exceeded 43.5 million TEUs, making it the busiest container facility in the world.
It mainly handles bulk cargo transportation of coal, metal ores, petroleum and its derivatives, steel, machinery and construction equipment.
The port consists of 125 terminals and 19 terminal facilities capable of accommodating the world's largest ships and carriers. In addition to the 5 main port areas, the port also has a cruise ship terminal with an annual throughput of more than 1 million passengers. More than a quarter of China's trade is handled at the port of Shanghai.

NO.3 Tangshan Port

Tangshan Port is located on the southeast coast of Tangshan City, Hebei Province. It is an important regional port along the coast of my country and an important part of the specialized transportation system for bulk materials such as energy and raw materials. Tangshan Port is adjacent to the Beijing-Tianjin-Hebei urban agglomeration. Caofeidian is 400 nautical miles from Incheon, South Korea, 680 nautical miles from Nagasaki, Japan, and 935 nautical miles from Kobe. The shipping routes to ore exporting countries such as Australia, Brazil, Peru, South Africa, and India are also very smooth.
In the past ten years, the planned coastline of Tangshan Port has increased from 32.5 kilometers to 65.5 kilometers, the planned dock coastline has increased from 90.1 kilometers to 190.3 kilometers, and the number of berths that can be planned and arranged has increased from 344 to 602, forming the "one port, three" in the whole port. District” and the planning and layout of dislocation development.

NO.4 Port of Qingdao

Like many famous seaports in China, Qingdao Port has a long history - since 1892, it has connected the Bohai Rim and Yangtze River Delta regions with the rest of the world. Qingdao offers direct flights to more than 180 countries and 700 ports.
Qingdao Port includes Qingdao Old Port, Huangdao Oil Port and Qianwan New Port
In 1984, three U.S. Navy ships docked in Qingdao, the first time the U.S. docked at a Chinese port in 37 years.

NO.5 Guangzhou Port

Known as the "Maritime Silk Road", Guangzhou Port has a coastline of nearly 250 miles and is an important shipping hub in South China. Located in the Pearl River Delta, Guangzhou is connected to more than 100 ports in China and more than 350 ports around the world.
In recent years, Guangzhou Port has benchmarked against world-class container hub ports, and has taken various measures to promote the development of containers to a new level, consolidating and improving the energy level of Guangzhou Port as an international container hub. In 2021, Guangzhou Port will complete a total cargo throughput of 623.67 million tons, an increase of 1.8%.

NO.6 Port of Singapore

The Port of Singapore is located on the southern coast of Singapore, with the southeastern side of the Malacca Strait in the west and the northern side of the Singapore Strait in the south. It is one of the largest container ports in the world. The port is the main shipping route between the Pacific Ocean and the Indian Ocean, and its strategic position is very important. It has been an international trade port since the 13th century and has developed into an internationally renowned entrepot. The Port of Singapore is also the country's political, economic, cultural and transportation center.
The Port of Singapore has superior natural conditions, spacious waters, and little impact from storms. The administrative area is 5.38 million square meters. The water depth is suitable. Ships with a draft of about 13m can smoothly enter the port and berth. The port equipment is advanced and complete, and computerized information is used. The system also seeks to simplify and facilitate user procedures.

NO.7 Suzhou Port

Suzhou Port, located in Suzhou City, Jiangsu Province, China, is located in the throat area of ​​the mouth of the Yangtze River, starting from Changshan Mountain in the west (the junction of Zhangjiagang and Jiangyin), and east to the south of Liuhekou (the junction of Taicang and Shanghai). The southeast is close to Shanghai, and the southwest is the economically developed Jiangsu, Xi and Chang areas. It is an emerging port built by the combination of Zhangjiagang Port, Changshu Port and Taicang Port, the former national first-class open ports in China. The original three ports correspondingly become Suzhou Port Zhangjiagang Port Area, Changshu Port Area and Taicang Port Area.
In 1968, Zhangjiagang Port Area was established; in 1992, Taicang Port Area was developed and constructed; in August of the same year, Changshu Port Area started construction; in 2002, the original Zhangjiagang Port, Changshu Port and Taicang Port were combined to form Suzhou Port.

NO.8 Port Hedland

Port Hedland, a port on the Indian Ocean coast in the northwest of Western Australia, Australia. Australian iron ore export port. Located on the northwest coast of Western Australia, east of the port town, facing the southern Indian Ocean to the north, 133 nautical miles from Dampier to the west, 258 nautical miles from Broome Port in the northeast, 812 nautical miles from Wyndham Port, 917 nautical miles from Darwin Port, and north of Lombok The strait is 706 nautical miles and has a population of 15,000.
Just this February, Australia's Western Australian state government approved a development plan to allow Port Hedland, the operator, to export 660 million tonnes of iron ore a year, enabling port backers to invest in onshore infrastructure upgrades and advance their investment and development. growth strategy.

NO.9 Rizhao Port

Rizhao Port is located in Rizhao City, Shandong Province, China. It faces the Yellow Sea in the east, Qingdao Port in the north, Lianyungang Port in the south, and faces Japan, South Korea and North Korea across the sea. It is one of the 20 major coastal hub ports developed by China. In 1978, the Shandong Provincial People's Government planned and surveyed the port selection of Rizhao Port. In 1982, the Rizhao Port officially started construction; in 1986, the Rizhao Port opened for operation.
There are 58 productive berths in Rizhao Port, with an annual throughput of over 300 million. There are two major port areas, Shijiu and Lanshan. As of 2010, Rizhao Port has 38 40-ton, 25-ton, 16-ton and 10-ton gantry cranes, 7 high-horsepower diesel locomotives, 2 imported alumina special ship unloaders, tire cranes, excavators and other Heavy, transport and other equipment

NO.10 Tianjin Port

Shot in Tianjin, China.

Tianjin Port is an important port facility and an important logistics and shipping center in North China. It is located on the west coast of Bohai Bay and is also the maritime gateway to Beijing. It is the largest artificial port facility in China and the ninth busiest port in the world. It handled more than 18.35 million TEUs in 2020 and has trade links with more than 600 ports in 190 countries, with more than 120 container routes.
Tianjin Port covers an area of ​​more than 120 square kilometers, with a wharf of 34 kilometers long and has more than 170 berths for cargo ships. It has 2 passenger terminals and 9 port areas, among which the 3 port areas of Beijiang, Nanjiang and Dongjiang undertake most of the trade business. It also has six main and two temporary anchor areas.

As China is an important central node of the global industrial chain, with a large economy and developed industrial manufacturing, and thanks to the effective prevention and control of the epidemic, manufacturing and residents' lives are generally running smoothly. Compared with foreign ports, major ports generally have better performance. High cargo throughput levels.

How to Ship Dangerous Goods?

No matter what industry you're in, chances are you'll find yourself shipping something that's classified as a hazardous material. Many products contain elements that can be dangerous if mishandled, and such products are required by law to be transported in a certain way.

But how do you know if these requirements apply to you? What qualifies as a hazardous substance? If you found yourself needing to ship anything, how would you pack and ship them? In this Hazardous Logistics Safety Guide, we provide answers to these questions and some tips for shipping dangerous goods.

Some of the most important safety tips to follow.

1. Get proper training
The Transportation of Dangerous Goods (TDG) Act and Regulations deal with the handling and transportation of dangerous goods, whether by road, air, rail or water. It consists of various elements, focusing on aspects such as the composition of dangerous goods, preparation of relevant documentation, reporting of incidents and incidents, and training required for contacts. A company's first priority should be to ensure that anyone involved in the transport of dangerous goods has the correct training and is kept up to date with that training. There are courses specifically designed to train personnel to handle and transport dangerous goods, but laws may vary by region, so check government advice and local regulations to ensure your employees are properly trained in advance. The TDG certificate is generally valid for 3 years, after which retraining is required. Anyone handling unlicensed dangerous goods must be supervised by a witness.

2. Correctly classify dangerous goods
Dangerous goods is an umbrella term covering many different materials and substances. It is important to remember that not all dangerous goods are created equal, and they should be handled and transported in a manner appropriate to the particular type of hazard. TDG divides different types of dangerous goods into 9 categories. these are:

  • Class 1: Explosives
  • Class 2: Gases
  • Class 3: Flammable Liquids
  • Class 4: Flammable solids; substances liable to spontaneous combustion; substances which, in contact with water, emit flammable gases (water-reactive substances)
  • Class 5: Oxidizing Substances and Organic Peroxides
  • Class 6: Toxic and Infectious Substances
  • Class 7: Radioactive material
  • Class 8: Corrosives
  • Class 9: Miscellaneous products, substances or organisms (including environmentally hazardous substances)

3. Contact your shipper in advance
Different shipping companies may have different requirements and restrictions when it comes to shipping dangerous goods. The TDG outlines the minimum requirements expected by the legislation, but different shipping lines may take other steps. Therefore, it is always recommended that you contact your shipper beforehand to check the details of how your shipment should be prepared for shipping.

4. Make sure your shipment is properly packaged and labeled
Ensuring that shipments are properly packaged and labelled is absolutely critical. Before attempting packaging or labeling, you should take the time to research the various requirements for the specific hazmat you are shipping. Companies shipping in and out of Canada should ensure that labels comply with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), an international standard that has been adopted by countries around the world.

How should you package hazardous materials?

Given the wide variety of items that can be considered dangerous, you may find that you sometimes need to ship items in one of the above categories. Even if it's not as dangerous as an explosive, it could still be something like perfume or matches.

What should you do when this happens? How should you wrap it? Here are some basics on how to transport dangerous products.

Safe packaging
A good start is to pack all materials as safely as possible. By locking them as securely as you can, you can minimize the risk of any adverse events. For example, with aerosol cans, you should put lids on and wrap them in bubble wrap or other similar material to keep them from rolling.

Take a similar approach with other hazardous materials, storing them safely with plenty of filling so they get as little jostling and nudge as possible during transport. Also, be careful not to pack incompatible items together, such as explosives and oxidizing substances.

In extreme cases, like nuclear or radioactive waste, the material must be stored in a special type of container designed for the substance, like the familiar yellow drums in various movie images. Hopefully most of your materials will be more common and can be packaged in standard boxes and containers. But they still need to be safe, so make sure they are safe!

Label container
After loading materials into containers, be sure to properly label those containers. You'll want to do everything you can to help supply chain workers understand their content. Use appropriate hazmat stickers on the outside of the container. However, try to keep the number of tags out there so as not to distract anyone with too much information.

In addition to marking what the materials are and the hazards they pose, mark how they should be handled. Make sure the shipper knows what to do with them, either through actions such as marking the container "this side up" or by communicating directly with the shipper.

Record everything
In a similar fashion, record everything about the process. Document everything you ship for yourself and the shipper. Document the materials shipped and how they are packaged and labeled. The more information you keep track of, the easier it is for you to deal with anything that might go wrong. In any case, some documents may be required by law, but even if not, you still need to document everything that happens in the process.

Track your package
It is also important to keep track of the materials you ship. At the very least, take advantage of tracking tags so you can track the progress of materials as they stop and keep track of where they are. Even better, you can use a GPS tracker, which allows you to see where your package is at any time. Tracking your package helps keep you informed and prepared in case something goes wrong.

Abide by the law
Of course, while it's a good idea to do all of these things anyway to be on the safe side, in many cases it's required by law -- especially if your package is being transported by plane. Some materials cannot even be legally transported by plane. For those you can ship to, you may still need to follow a few procedures.

The exact nature of what you have to do will vary depending on the type of material, whether it is new or reused, and whether you ship in bulk. Different combinations of these factors will result in different requirements. In some cases, you may have to use UN-spec packaging, which must have internal materials tested to ensure it will work properly before it is allowed to ship.

Why is MSDS required when exporting dangerous goods and general chemicals by sea?

MSDS is an important document for conveying chemical hazard information. It briefly describes the hazards of a chemical to human health and the environment and provides information on the safe handling, storage and use of the chemical. Developed countries such as the United States, Japan, and EU countries have generally established and implemented the MSDS system. According to the chemical management regulations of these countries, manufacturers of hazardous chemicals usually provide a safety data sheet for their products when they sell, transport or export their products.
At present, the foreign requirements for MSDS (SDS) have been extended to almost all chemicals. In this regard, chemicals exported to developed countries are now basically required to have MSDS (SDS) in order to be successfully declared. And some foreign buyers will require MSDS (SDS) of items, and some domestic foreign companies or joint ventures will also request this.

The function of the bill of lading

The bill of lading is one of the most important documents in the shipping and freight process. It is a legal document that provides a record of the transport of goods from one place to another and ensures a convenient and safe logistics process. Bills of lading can be issued by

  • Shipping agent
  • Carrier or
  • Logistics company to shipper

The bill of lading also has three main functions:

1. Proof of the contract of carriage
A bill of lading is evidence of a contract of carriage between the "carrier" and the "shipper or owner" for the purpose of carrying the goods (not to be confused with a contract of sale between the buyer and the seller).

2. It acts as a receipt
When the carrier issues the bill of lading to the shipper, it confirms that the goods have been loaded onto the transport vessel. The shipper usually issues several original bills of lading which can be passed on to different parties along the way, essentially taking control of the cargo.

3. Ownership as a commodity (representing ownership)
The bill of lading usually includes details of the consignee (buyer/consignee) to which the carrier ships the goods. However, title does not pass until the bill of lading is passed on to the receiver. The shipper may forward a copy of the bill of lading to the consignee as proof of transport, but the person holding the original bill of lading retains title to the goods. Bills of lading are usually delivered to the consignee only after full payment.

The information listed on the bill of lading can include:

  • Shipper Details
  • Recipient (Consignee) Details
  • Carrier details and signature to confirm receipt
  • Loading date
  • Port of loading
  • Destination port
  • Details of the shipment
  • Shipping terms and conditions
  • Any special shipping requirements (for example, if the cargo is dangerous)

Shipping terms and conditions are especially important because they detail who is responsible for the goods at what stage, and who is responsible for paying the freight (Incoterm for the goods). Note that the bill of lading may not detail all the terms and conditions of carriage, but at least they should be mentioned.

So among these three functions, which is the most important function of the bill of lading..??

In the container business, the following are the most common types/methods of issuing bills of lading:

  • Direct bill of lading
  • Order bill of lading
  • Bill of Lading

All of the above types of bills of lading satisfy Functions 1 and 2 – Evidence of Contract of Carriage and Goods Receipt, but only the Order Bill of Lading satisfies Function 3 – Document of Title..

Why the other two types do not satisfy function 3..?? Let me explain..

1) When a bill of lading is issued in original form to the "appointed" consignee, it is called a "direct bill of lading", and a direct bill of lading is a non-negotiable and non-negotiable document. The bill of lading stationery will not have the words Straight Bill of Lading, but may have Ocean Bill of Lading or Port to Port Bill of Lading written at the top.

Release of goods at destination can only be made to the named consignee and only after surrender of at least one original issued bill of lading. This release condition is governed by the COGSA (Carriage of Goods by Sea Act) of the relevant country and jurisdiction. .
A direct bill of lading does not satisfy function 3 (document of title) because the document is neither transferable nor transferable.

2) When the bill of lading is issued to the "designated" consignee but without any original and using sea waybill or waybill stationery, it may be regarded as a "sea waybill".. this bill of lading is also a non-negotiable & non-negotiable document..
Since the sea waybill is not issued the original, it does not need to be returned.
The ocean bill of lading does not satisfy function 3 (document of title) because the document is neither negotiable nor negotiable.

Given below are ready-made estimators as to which type of bill of lading fulfills which role (in the context of container shipping).

 

So what is the most important function of the bill of lading? ?

The answer is: no one feature is more important than the other, because each feature has its own purpose and needs.

Various types of bills of lading

 

In foreign trade, the bill of lading is a document issued to the consignor by the transportation department when carrying the goods. The consignee picks up the goods with the bill of lading to the transportation department at the destination of the freight. The bill of lading must be signed by the carrier or the ship to take effect. It is one of the valid documents for the declaration of goods by sea to the customs.

1. Different types of bills of lading based on negotiable and non-negotiable documents

The main difference between the two types is that the title (ownership) of one can be transferred to another party, while the other is consigned to a named party, so he/she must be the ultimate receiver of the goods, as this type of title bill of lading cannot. transfer.
Readers should not confuse negotiable and non-negotiable bills of lading with "negotiable" and "non-negotiable" copies of a signed bill of lading.

① Direct bill of lading
A direct bill of lading is designated to a specific party, and the designated party cannot reassign it to anyone else. One party only needs to pick up the goods and cannot sell the goods by transferring the bill of lading to the other party's name.
② Order bill of lading
This is the bill of lading that most people encounter on board. The bill of lading is for the consignee, or for him. That is, the named consignee will be the owner of the goods or he can order the delivery of the goods to the other party by means of a bill of lading endorsed to the other party.
An order bill of lading is a negotiable document as the title (ownership) of the bill of lading is transferable.
③Bearer bill of lading
A bearer bill of lading is a bill of lading that states that the goods should be delivered to anyone who holds the bill of lading. These documents are issued exclusively or are purchase orders that do not specify the consignee by original or blank endorsement. Bearer notes can be negotiated by physical delivery.

2. According to whether the goods have been shipped

①Shipped B/L, or On Board B/L
Refers to the bill of lading issued to the shipper by the carrier or its authorized agent on the basis of the chief mate's receipt after the goods are loaded on board. If the carrier issues an on-board bill of lading, it confirms that he has the goods on board.
②Received for Shipment B/L
It is a bill of lading issued by the carrier at the request of the shipper when it has received the goods from the shipper but has not yet been loaded on board.

3. According to whether there are comments on the order or not

①Clean B/L
Refers to the bill of lading that the goods are in good condition when loaded on the ship, and the carrier has not added any damage to the goods, poor packaging or other obstacles to the settlement of foreign exchange.
②Unclean B/L or Foul B/L
Unclean B/L or foul B/L refers to the bill of lading marked on the bill of lading by the carrier that the goods and packaging are in poor condition or defective, such as wet, oily, stained, rusted, etc.

4. According to the different modes of transportation

①Direct B/L
Refers to the bill of lading issued after the goods are loaded from the port of loading and sailed directly to the port of unloading without changing ships in the middle.
②Transhipment B/L
It refers to the full bill of lading issued by the carrier at the port of shipment for the goods to be transshipped to reach the port of destination.
③Multimodal transport document/multimodal transport document
A multimodal transport document or combined transport document is an intermodal bill of lading involving at least two different modes of transport, land or sea. However, the mode of transportation can be anything from cargo ships to air.

5. Special Bill of Lading

①Container Bill of Lading
A container bill of lading is a document that provides information about the shipment of goods in secure containers or containers from one port to another.
②Combined B/L
Refers to two or more batches of liquid bulk cargo of the same variety, quality, port of loading and unloading, but belonging to different consignees and packed in the same liquid cargo tank, and are respectively the consignee of each batch of goods Issuing a bill of lading with the seal of 'Consolidation Clause' stamped on it.
③Parcel Receipt B/L
Refers to the bill of lading issued for goods consigned in the form of parcels. This is a bill of lading set by the carrier according to the special needs of the trade, and the weight must not exceed 45kg.

ONE publishes special loading requirements for these two categories of cargo

On March 28, 2022, ONE issued a security bulletin on Special Stowage Requirement for Non-DG and Non-Special Cargoes.

ONE stated in the announcement that when transporting goods, safety is the number one priority. To ensure compliance with

global acceptance policies and safety standards, ONE verifies all bookings to ensure that all shipments are properly declared,

packed and loaded. This measure is a critical step in preventing accidents and ensuring safe handling of cargo.

 

ONE emphasizes that in addition to dangerous goods and special cargoes, the following non-dangerous goods and non-special

cargoes booked at ONE also require special loading to be loaded onto the ships of ONE and its partners.

Additionally, in order to complete the verification, the customer will be required to provide additional instructions and documentation.

This will help ONE achieve a higher standard in the safe transportation of goods.

 

ONE said it was the responsibility of shippers to declare correct cargo information and therefore reminded its customers to check that all

bookings are properly declared.

Ownership-based container terminal types

What is a container terminal?

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

Container Terminal Type

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

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

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

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

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

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

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