When it comes to shipping, it's not just shipping costs to consider. LTL ("Less Than Truckload") shipping can be expensive - especially if not handled carefully, but in addition to cost, there are the overall goals of your business. You want to get the best price possible while achieving your goals as a business in the most efficient way.
There are many advantages to using 3PL. Shipping rates can be confusing, and dealing with the complex world of shipping alone isn’t easy, that’s why having industry experts help. Find out how 3PL can help you meet your supply chain challenges.
When considering who to entrust your freightneeds to, it's important to find a partner who can deliver products on time and put your company first. Read the TJ chinafreightway. These are the values that our team upholds and practices every day. We don't want to just sell you something - we want to understand what makes your business a success and how we can help maximize its potential for growth now and in the future.
While shipping costs are an important part of your manufacturing business (or any business), they're not the only factor to consider. We encourage you to contact a partner likeTJ chinafreghtfor the most efficient business solution. We work with companies around the world - finding solutions that make sense for you. You succeed, we succeed!
If you've ever found yourself wondering "Why is my shipment taking so long?" it might be time to rethink how you move your products. Working with a logistics partner like TJ chinafrieghtmeans better control of your costs, less time contacting multiple carriers, access to an LTL network with nationwide discounts, and unified billing for your convenience. In an industry that is constantly changing and evolving, you don't have to be an expert - that's our goal. Now, back to your original question...
Mother Nature is always in charge, and everything from floods to tornadoes to snowstorms can affect travel and cause product shipping delays.
Current events
Remember when a container ship got stuck in the Suez Canal or a truck stopped near the Canadian border? The logisticsworld is vast, and there are always things that affect planning. The good news is that when you work with a logistics partner, you don't have to worry about current events. We will solve this problem for you.
Labor issues
Labor shortages can have a major impact on the flow of goods. It will take longer to get from point A to point B if there are not enough truckers or dock workers to deliver the goods.
Now, what if your shipments take so long?
Well, as you may have guessed, if you haven't already, you need to find a logistics partner you trust! Don't just focus on the bottom line, but find a company that takes time to understand your business and find the best solution for your needs.
If you have a logistics partner, the first thing you need to ask yourself is, "Do I need this product now, or do I want it now?" From there, your logistics partner (like TJ chinafreight) can work hard to meet the time and cost related expectations. When it's a "want" situation, there's no reason to pay a "need" cost.
Due to the large carrying capacity of ships, sea freightis the best way to transport heavy or oversized cargo. Different containers of various sizes can accommodate oversized sea freight. The smallest container height is 20 feet and the largest available is 45 feet.
If you are shipping heavy and oversized shipments by sea, we recommend that you ship with Full Container Box (FCL) to maximize your costs.
Tips for reducing costs when transporting heavy loads
Shipping heavy and oversized cargo can get very expensive. But there are ways to keep costs down.
1. Adjust the packaging
Packing can expand the cargo even further, and sometimes this is not recommended if you want to save on shipping costs. However, you can adjust the packaging by reducing packaging, packing more product into one container, or deflating the plastic packaging. These can reduce the space your cargo takes up and reduce costs accordingly.
2. Consider bulk shipping
If you're a frequent shipper, you can make the most of your shipping costs by maximizing less frequent orders. For example, consider shippingorders in bulk rather than weekly. This scheduling strategy will reduce your vessel and cost per shipment. However, for time-sensitive cargo, this may not be a viable option.
3. Correct container type
There are other costs associated with different sized containers. For example, moving a 40-foot container is more expensive than driving a 20-foot container. So it will help if you have a good idea of the size of the selected container.
FOB, CIF or EXW? The Incoterm you choose toimport from China can greatly affect your overall cost. But oddly, it's rarely the focus of your import activity.
Most importers tend to put the lowest possible sales price as a higher priority, ignoring other details. This could end up being a costly mistake. Given their direct impact on import costs, now is the time to start taking a closer look at Incoterms.
Product prices vary by Incoterm
The price of your purchase will vary depending on whether you imported using FOB Incoterm, CIF Incoterm or EXW Incoterm. Many Chinese suppliers include shipping costs directly into the product price, which is why they usually have different price lists depending on the Incoterms used.
Be very careful when negotiating with Chinese suppliers here, as the price difference does not always correspond to the price of sea freight. Suppliers have been known to use this to manipulate buyers into choosing a specific Incoterm that is more beneficial to the supplier. This will be explained further when we discuss the CIF Incoterm.
Incoterms determine the control you have
The Incoterm you choose will define your control over your shipment at every stage of the shipping process. Whoever controls ocean shipping has control over costs and greater bargaining power.
If you let the supplier manage the ocean freight, you must accept the price and conditions he sets with thefreight forwarder.
FOB Incoterms are probably the favorite - and in some cases only - Incoterms of experienced importers. We are talking about countless imported products with different characteristics, each with their own unique needs.
In my opinion, if you can only choose one Incoterm to import from China, FOB Incoterm will be your best choice. Why? FOB Incoterm gives you more control over your imported ocean cargo without the responsibilities that come with it.
As mentioned, the biggest advantage of using FOB to import from China is the control you have. You also have less responsibility than EXW.
For FOB, your responsibility as the importer is freight, cost of arrival and delivery. This means that any problems at the origin will be the responsibility of your supplier in China. However, with EXW, you are responsible for any problems and unexpected expenses - both at the origin and destination.
In short, while both FOB and EXW Incoterms are considered safe options for importers, there are significant differences in how responsibility is allocated.
Buyer's responsibility: payment of goods, arrival fee, customs clearance at destination, inland transportation at destination from port to warehouse, and corresponding import duties.
Responsibilities of the seller: deliver the goods according to the conditions agreed with the buyer, obtain the necessary documents for export, manage the inland transportation in China, manage the customs clearance and pay the corresponding customs fees in China, rent and pay the sea freight, insurance, and original Origin port charges.
For a novice importer, a CIF Incotermmay look very tempting: no need to pay for shipping, no need to choose or negotiate with a freight forwarder, no need to organize shipments, and most importantly, the item is actually cheaper than buying under another Incoterm they.
Buyer's Responsibilities: Pay for the goods, manage inland transportation at origin and destination, pay origin, ocean freight, insurance, manage customs clearance at origin and destination and pay appropriate fees, and pay appropriate customs duties.
Seller's Responsibilities: Deliver on the terms agreed with Buyer, provide all required documents and proofs.
What is the best Incoterm when importing from China?
In theory,FOB,CIFand EXWare your viable options for importing from China. Each involves a different amount of risk, liability, cost, and safety.
My advice
Choose the safest Incoterms that give you maximum control over your ocean freight.
Cargo ship in transit of the Panama Canal passes under the Centenary Bridge, Panama
Where is the Panama Canal?
The Panama Canal is located in Panama City and connects the Pacific and Atlantic Oceans. Comprising a 77km long waterway, it is an important gateway for ships heading to South America, saving them over 12,875km of voyages.
Panama Canal: When was it built?
The construction of the Panama Canal was the second attempt by the United States after France failed to build its own canal in the Isthmus of Panama. The construction of the canal was decided in 1906, which required moving more than 1 million cubic yards of dirt. The job requires more than 25,000 workers to complete the construction of the building facility every day.
What is the purpose of the Panama Canal?
The Panama Canal is one of the most strategic man-made waterways in the world, providing vital services for the movement of goods. It reduces the sailing of ships by providing a passage that takes them directly to South America. This reduced travel time by more than 15,000 kilometers.
Routes to North and other South American ports also facilitate easy travel through the Panama Canal, saving more than 6,500 kilometers. On the other hand, the use of the Panama Canal reduces voyages from East Asia and Europe to Australia by 3,700 km.
What is the Panama Canal for?
Today, the Panama Canal is used for the transportation of goods, mainly in the import and export industry. It became an important gateway to different parts of the world by allowing easier routes and faster voyages.
Why is the Panama Canal important?
The importance of the Panama Canal lies in its import and export advantages as well as its international trade relations. It has commercial and military importance.
Commercial importance
The Panama Canal provided a cheaper and easier way to move cargo and commercial goods between the Pacific and Atlantic. It eliminates the need for ships to sail around Cape Horn and the southernmost tip of South America to reach their destination. From a voyage that took 67 days to cover 12,000 miles, the canal paved the way for a voyage of just 8,000 miles, which was only 8 to 10 hours.
Military importance
The Panama Canal was of military importance in the 1900s, when the United States provided money and a naval blockade to Panama for its revolution. This led to the independence of Panama, which enabled the United States to enter into a treaty with them to build the canal. In 1999, the military presence in the Panama Canal Zone was strong, especially when U.S. military bases were closed.
To this day, the Panama Canal is still used to transportmilitary watercraft.
How did the Panama Canal affect the world?
The Panama Canal is hailed as one of the few projects that changed the face of the planet and created transoceanic shipping routes. From 1914 to the present, it is one of the most important waterways facilitating international trade and import and export.
Freight Handling Professional and smooth shipments
Freight handling, also known as hauling, is the delivery of your cargo from the loading dock/carrier or premium warehouse to your booth and back to the loading dock/carrier at the end of the show. Hauling includes the delivery of materials to your booth, the handling of empty containers in and out of your warehouse, and the removal of your materials from your booth for reloading onto your outbound carrier. Freight handling should not be confused with the cost of materials to and from the show.
The safe handling of goods depends on the relevant personnel following the relevant procedures and applying the necessary skills to handle them. Therefore, this qualification is designed to provide learners in the freight sector with:
Comprehensive practical and theoretical foundations of freighthandling.
The ability to work more effectively with others.
The skills necessary to maintain and improve the level and quality of service expected by customers.
Knowledge and understanding of key business principles leading to the transformation, transferability, economic growth and social development of the freight handling industry.
Freight handlers play a key role in the movement of goods because they represent the physical link that ensures that goods are handled efficiently and safely. Warehouse and distribution companies hire freight handlers to unload their incoming cargo. The warehouse's freight handlers have offices on-site and on-site management. They generally use forklifts and pallet jacks provided by the warehouse. Their work is the main business because not only do they play an important role in inbound freight, but now they are starting to be used for outbound freight because they are cost effective. Freight handlers contract through warehouses and distribution centers for periods ranging from one to five years. Once at the warehouse, the carrier can choose to unload its own cargo or hire a freight forwarder.
The warehouse has a full-time third-party employee who spends nothing during the dead time, and basically they don't go to work.
Once the driver decides to hire, it is the responsibility of the unloader to unload.
The driver pays for the unloading of the semi-trailer
There are no warehouse or distribution charges for unloading of goods.
Another great benefit of this deal is that warehouses and distribution centers get rebates or cash back on all business generated.
It was a winning situation for both sides.
Freight handlers can also be trained to perform all duties around the warehouse. Then, when your company employees start working overtime, you can release them and use temporary service employees to
fill those positions. This is a great way to keep working hours low and profits high.
The unloading service of cargo is paid for by the cargo, box or pallet, they are usually never paid by the hour. This is great for productivity as they will work hard to stay productive because if they are not productive it will hurt their paycheck.
A good freight handling service provides weekly productivity reports so they can analyze where the problem is and come up with solutions to maintain control of the terminal. A good trucking service can help you recruit by letting you hire their staff. This gives you the advantage of trying before you buy. The best services don't even charge you for this benefit. This can be a free training ground for your future employees, giving you time to learn about their work. By outsourcing, you can develop a robust warehouse or distribution service.
Over the past year, global supply chain disruptions, port congestion, capacity shortages, rising ocean freightrates and the ongoing pandemic have created challenges for shippers, ports, carriers and logistics providers.
Looking ahead to 2022, experts estimate that pressures on global supply chains will continue - with the light at the end of the tunnel not appearing until the second half of the year at the earliest.
On top of that, the consensus is that the pressure on the ocean freight market will persist in 2022, with freight rates unlikely to fall back to pre-pandemic levels. Capacity issues and congestion at ports will continue to be combined with strong demand from the global consumer goods industry.
German economist Monika Schnitzer expects the current Omicron variant to have a further impact on global shipping times in the coming months. "This could exacerbate an already existing delivery bottleneck," she warned. "Transit times from China to the US have increased from 85 days to 100 days due to the Delta variant and may increase again. Europe is also affected by these issues as the situation remains tense."
Meanwhile, the ongoing pandemic has sparked a standoff at major ports on the U.S. West Coast and in China, meaning hundreds of container ships are at sea awaiting berths. Earlier this year, Maersk warned customers that wait times for container ships to unload or pick up at the port of Long Beach near Los Angeles were between 38 and 45 days, with restrictions expected to continue.
You are an exporter and want to expand your business globally, but sometimes you feel like you\may have hit the iron ceiling of your business? Many business owners encounter this problem at various stages of their business. If you are considering the possibility of exporting your goods worldwide, you should go ahead. In this article, I will outline how to expand your business globally in 2022.
Step 1: Assess the market
Evaluate your target market as it is important to summarize and understand the content of your business analysis before going global.
Step 2: Business Objectives and Strategic Blueprint
Each market has different nuances due to market trends, culture, needs, and government regulations. Therefore, an analysis of business goals, objectives, needs, and success metrics is very important.
Step 3: Stock Inventory
Always take the unavoidable steps, and the inventory should always be ready and updated. Your product enables high-impact product differentiation.
It is necessary to choose your freight forwarder wisely, as freightas the best way to ship your goods, freight, insurance cargo, customs clearance, etc. has many hassles.
"Shiptos, the one-stop solution for all your logistics needs. It's a fully digital freight forwarder where you can get instant quotes for free, multiple options to ship your products, track your shipments, clear customs and insure your shipments."
Step 5: Sell the product
Now, the final step is, once your product reaches its destination, sell your product according to the strategy.
My point:
Take it one step at a time and don't get overwhelmed. But, take it seriously. Whatever you choose, don't rush it. Know what you are doing. Do additional research, learn about best method practices, test several methods and always analyze your results.
The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.
According to Incoterms rules, Ex Works (EXW) means that the seller has fulfilled its responsibilities when the goods are normally provided to the buyer at the seller's destination. The seller shall package the goods properly or as specified in the mutual agreement. The buyer is responsible for everything necessary to load the goods in transit and to get the goods to their final destination. Risk or responsibility for the goods passes from the seller to the buyer when the goods are available at that location. This means that the buyer is at risk if the goods are damaged in any way while the buyer is in transit, even if the seller assists with loading. Precautions should be taken.
Free Carrier or FCA is a trade term that states that the seller of goods is responsible for delivering those goods to the destination specified by the buyer. When used in trade, the term "free" means that the seller must deliver the goods to a designated location for transfer to the carrier. Considering that the carrier is nominated by the buyer, the shipping costs under the FCA terms are paid by the buyer. The seller arranges for the goods to be loaded onto the carrier nominated by the buyer.
The seller is responsible for delivering the goods at its location. In this case, it is the seller's responsibility to load the goods on the buyer's means of transport and for delivery to the port and export clearance, including security requirements. Risk transfers once the goods are loaded onto the buyer's means of transport.
Carriage Paid to or CPT means that the seller delivers the goods to the carrier or a person designated by the seller at the agreed place, and requires the seller to sign a contract of carriage and pay the agreed freight for delivery of the goods. The seller must go through the export procedures and the buyer must go through the import procedures. But the seller is not responsible for purchasing insurance.
Carriage and Insurance Paid To (CIP) is similar to CIP with one important difference. Risk passes to Buyer when Seller clears the goods for export and delivers them to the carrier or another person designated by Seller at the place of shipment. This Incoterms rule requires the seller to take out maximum insurance for the buyer - at least 110% of the value of the goods covered by the ICC (Institute Cargo Clauses) (A) or (Air) or similar clauses to cover the buyer's risk. Seller must provide Buyer with any insurance documentation required by Buyer in case it must file a claim under that insurance.
Delivered at Place or DAP, this incoterm rule can be used for any shipping method. An extension of DAT, the seller delivers the goods at the destination specified by the buyer, although under ICC rules the unloading of the goods is the buyer's responsibility. The buyer also needs to sort out duties and taxes, as well as clear the goods through customs.
Previously named Delivery at Dock or DAT, this Incoterm has been renamed to Delivery at Unloading Point (DPU) as the buyer or seller may require the goods to be delivered elsewhere. The term is often used for consolidated containers with multiple consignees, and this is the only term that requires the seller to unload. The seller clears the goods for export and assumes all risks and costs involved in the delivery and unloading of the goods at the named port or terminal at the destination. Buyer assumes all costs and risks from then on, including customs clearance of imported goods at the named destination.
Delivery After Tax, or DDP, works very similarly to DAP, with one most important difference. Seller must import customs clearance goods in buyer country and pay any duties and VAT/GST. DDP is a risky clause for sellers as they may not be aware of import customs clearance procedures at the import destination. Its value is also uncertain for importers, who must rely on sellers to successfully navigate the complexities of destination countries.
Why do you need a freight forwarder that provides it?
When transportingyour goods, whether by road, air or sea, there are various risks. Even with the assistance of a reliable freight forwarder, there are many external factors that can interfere with the progress of the logistics process.
The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.
Guaranteed no financial loss
Everyone wants hassle-free shipping. No one wants to have problems shipping their goods overseas, but there are still some risks you can't avoid and can cause problems with your shipments. This is the most important reason why you need to rely on a freight forwarder who provides cargo insurance: they will ensure that you will not suffer any financial loss if anything happens in transit.
Prepare for the unexpected
When running a global logistics operation, you should be prepared for unexpected events throughout the operation. Whether it's inappropriate weather conditions or carrier issues that could cause your cargo to be lost, good cargo insurance will give you all the support you need in situations beyond your control.
Expertise in exporting/importing anytime, anywhere
In addition to the safety and financial reasons for hire cargo insurance, there is also the fact that some countries only allow import and export business to carriers who provide proof of cargo insurance. Therefore, insurance must be employed to be eligible to ship to these countries!
How to find the ideal cargo insurance for your logistics needs?
Each type of cargo insurance has specific coverage, and you should find the one that works best for your cargo. To determine the most suitable international freight insurance, it is recommended that you get the help of a freight forwarderwho can guide you through all the insurance options available and best suited for your export/import needs, such as TJ chinafreght.
