/ By tjchinafreight ivy / Shipping

What is a customs bond?

What is a customs bond?
What is a customs bond?

As the world's largest importer, the US import process can be described as complicated. In addition to the regular paperwork required for any ocean shipment (such as a bill of lading or packing list), there are a number of other costs to consider, such as fees and taxes. In this post, we'll take a deep dive into one of them: customs bonds.

What is a customs bond?

A customs bond is like an insurance policy that guarantees payment of all duties and charges related to the goods. As an importer, you purchase a bond from a surety company that assures the U.S. government that all applicable shipping costs will be paid.

By sponsoring the importer, the sponsoring company is bound by the importer's liability. If the importer fails to fulfill the payment, the guarantee company may be obliged to perform and fulfill the guarantee conditions on its behalf before taking legal action against the importer.

It is important to note that customs bonds only cover U.S. duties and duties, not imported goods.

When do I need a customs bond?

As a U.S. importer, certain goods you bring into the country require you to submit a customs guarantee:

  • Merchandise valued over $2,500 for commercial use
  • Goods required by other government agencies, such as weapons or food

Without a customs guarantee, your imported goods will not be able to clear customs.

Difference Between Single Entry Bonds and Continuous Bonds

U.S. importers have two types of bonds to choose from: single bonds and continuous bonds. Which type of bond you choose depends on how often you import into the United States.

Single entry bond

A single-entry guarantee, also known as a single-transaction guarantee, is only valid for one transaction (import), as the name suggests, and can only be used at the port where the imported goods arrive. A one-time or occasional import is generally recommended. This is the better option if you import less than 3 times a year. However, much depends on the cost of bonding, and the breakpoint can vary between two and five shipments.

Please note that the Importer Security Declaration (ISF), which needs to be submitted before your shipment leaves the exporting country, is not included in the single entry bond and must be purchased separately.

Continuous bonding

Continuous Bonding, on the other hand, applies to an unlimited number of imports through all U.S. ports within a 12-month period. It covers all shipments during this period, so you don't have to get a single entry bond every time. This is the cheaper and better option for frequent importers who achieve three or more imports per year.

Serial bonds also include your ISF, so you don't have to make multiple purchases. Continuous bonds are automatically renewed each year until terminated by the guarantee company or the importer himself. Purchasing continuous bonds does not restrict importers to freight forwarders or customs brokers.

Note: If your customs broker assists U.S. Customs and Border Protection with customs clearance, you may be entitled to your broker bond.

Contact your freight forwarder to find out which option is better for your import needs.

/ By tjchinafreight ivy / Shipping

Top 5 ports in Mexico

Top 5 ports in Mexico
Top 5 ports in Mexico

Port capacity in Mexico increased from 260 million tons in 2012 to 406 million tons in 2017, an increase of more than 56%. Shipping accounts for 90% of the world's economy, so it's important to know Mexico's main seaports to better understand how they operate. Below are the top 5 ports in Mexico.

5. Port of Ensenada

The Port of Ensenada is a deep-water port on the west coast of Baja California, just 110 kilometers from California, United States. It has cargo and cruise terminals and offers container unloading at its terminals.

The three most important overland routes for cargo transportation to and from the port are the Tijuana-Ensenada Expressway and the Tijuana-Ensenada and Tecate-Ensenada Federal Highways. Most cargo in and out of the Port of Ensenada uses these three routes, which also connect to major U.S. highways. Additionally, these routes provide direct connections to major U.S. border crossings such as Tijuana, Tecate, and Mexicali.

4. Port of Altamira

The Port of Altamira is located on the east coast of Mexico, facing the Gulf of Mexico. It is connected to 125 ports, most of which are located on the Atlantic coast. Domestically, its land and rail connections connect the port directly to the northern and central regions of the country, including important cities such as Monterrey, Saltillo, Reynosa, Guadalajara, Mexico City, and more.

3. Puerto Veracruz

Located 500 kilometers south of the port of Altamira, is the third largest port in Mexico, Puerto Veracruz. The Puerto Veracruz is also on the east coast of the country with direct access to the Gulf of Mexico.

Today, the port of Veracruz is the oldest and most historic port in the country. As the first port to be equipped with automobile transportation equipment, it is one of the most important ports for the Mexican automobile industry.

2. Lazaro Cardenas

Located in Mexico's Pacific Basin, the port of Lazaro Cardenas is one of the largest seaports in the region.

This deep-water seaport accommodates post-Panamax vessels and handles containerized, dry bulk and liquid cargoes. A new semi-automated terminal opened in 2017 and can handle more than 1.2 million containers per year. As a result, the port's capacity is expected to increase from 27 million tons to 29 million tons.

The port is well connected to Mexico City, just 620 kilometers away, and the U.S. Mexican rail network south of Kansas City.

1. Port of Manzanillo

Mexico's largest port, the Port of Manzanillo, is located in the state of Colima on the Pacific coast and handles Pacific cargo for the Mexico City area. Most imports destined for central Mexico pass through the port of Manzanillo, which is an important port for Asian importers and exporters due to its geographic location.

Most of the port's exports go to the neighboring United States, Canada, Guatemala and Colombia, but also to countries further afield, including Japan, China, India, Malaysia and Singapore. Its main exports include beer, automobiles, cement, sugar, copper, steel pipes, carbon, glucose and resins.

/ By tjchinafreight ivy / Shipping

Is your Christmas made in China?

Is your Christmas made in China?
Is your Christmas made in China?

It's that time of year again to light up Christmas trees and decorate them.
Depending on where in the world you are, you may need to buy a Christmas tree -- or simply go and cut down a fir in your backyard.

Given that China is the world's largest exporter, it's no surprise that it is also the largest producer of artificial Christmas trees. It is estimated that about two-thirds of the world's Christmas decorations come from China - even though Christmas is not even a legal holiday in China.

Who knew Santa's logistics headquarters was in China?

More specifically, the production of Christmas goods takes place in the area around Yiwu in eastern Zhejiang province.

There are more than 600 factories and workshops there. Yiwu's market size is comparable to that of 26 large department stores, and it is the birthplace of most of the world's Christmas merchandise sales and listings.

Yiwu has direct freight trains to Madrid, London, Prague and Tehran. In fact, the London-Yiwu railway, which opened in 2017, has a total length of 12,000 kilometers and passes through France, Belgium, Germany, Poland, Belarus, Russia and Kazakhstan. The whole journey is less than 20 days.

Christmas year round

Production in Yiwu is almost year-round - their only time off is during the Lunar New Year period in January or February.

In addition to that, Christmas trees are being made every day. Even at Christmas itself.

However, most orders arrive in the summer to give workers enough time to complete their tasks by Christmas. Therefore, the busiest seasons for the production of Christmas decorations are June and July.

/ By tjchinafreight ivy / Shipping

6 common Incoterms mistakes to avoid

6 common Incoterms mistakes to avoid
6 common Incoterms mistakes to avoid

Incoterms are an essential part of any international ocean cargo. It is established by the International Chamber of Commerce or the ICC and sets out clear guidelines that buyers and sellers must execute transactions according to the parts of the transaction identified by each Incoterm.

Incoterms establish rules and responsibilities for both parties that can be used to resolve differences in the event of a dispute. The choice of Incoterm is determined and agreed upon by the buyer and the seller, who not only understand the responsibilities involved with each Incoterm, but also ensure that he/she is able to meet them.

Despite its importance and the potential consequences of misuse, many buyers and sellers are still unaware of some of the key responsibilities of every Incoterm.

In this article, we'll cover the six most common mistakes in Incoterms listed in Incoterms 2010.

1. Containerized goods use FOB

Despite common belief and practice, FOB Incoterm should only be used for non-contained ocean freight. This error is so common that it becomes a misunderstanding that is deeply ingrained in the minds of importers and exporters.

The main risk involved is the port of origin. Under FOB, the risk is formally transferred when the cargo is loaded on board. However, it is common practice for the shipper to hand over the cargo to the carrier at the terminal awaiting loading.

Since the cargo is at the dock, it has not yet been considered on board. Any damage sustained during this period is still technically the shipper's responsibility and the shipper's insurance should cover this part of the process as well.

However, when disputes arise, the shipper can and does often argue that he has done his part. So, in order to avoid hassle, delays and, more importantly, disputes that can lead to a deterioration in the relationship with the supplier, often the result is that the consignee has to bear the cost.

Apart from FOB, FAS, CFR and CIF are also not suitable for containerized cargo due to the above reasons.

2. Do not specify a location

Many people are unaware that Incoterms rules allow specifying locations. In fact, the failure to specify the full address may be controversial, as the ambiguity allows the seller to choose any delivery point he wishes within the general location provided.

This may be inconvenient for the buyer at all, especially if he has to spend extra time and money to transfer the goods to the final location he originally booked.

3. Seller commits to DDP or DAP without checking if he/she can handle import responsibility in buyer country

Under DDP and DAP, the seller is responsible for paying all arrival charges at the destination. With DDP, this includes paying local taxes (eg GST, VAT, etc.) and handling customs clearance at the destination. Note that unlike DDP, DAP does not require upfront customs clearance fees.

The latter requires him to register as an overseas importer in the destination country, a country-dependent process that can require a lengthy and lengthy program.

4. Buyer uses EXW regardless of his/her influence in the export process

This is similar to the role-reversal point of view mentioned earlier. Under EXW, the seller's responsibility is minimal and ultimately ends with the correct packaging of the item.

From then on, the buyer is responsible for export procedures from the country of origin and any necessary communication with the exporting authorities. For the buyer, it may not be that simple, especially if he/she is not familiar with the export process in the country of origin. In some cases, the seller may be required to participate.

5. Using CIP or CIF without checking that insurance coverage is adequate and complies with commercial contract requirements

According to CIP and CIF Incoterms, sellers are obliged to insure the goods. According to Incoterms rules, only minimum coverage (110% of contract value) is required.

However, depending on the conditions of the contract of sale, this may be insufficient and insufficient for the item being shipped. This amount needs to be met if the commercial contract requires more coverage.

6. Failure to align Incoterm with the bank's payment security requirements

This applies to international payment methods, such as letters of credit, whose secure and reliable nature suggests a lack of complete trust between buyers and sellers.

For letters of credit, payment can only be made after submitting the required documents to the bank to demonstrate that the trading conditions have been met.

/ By tjchinafreight ivy / Shipping

What are Canada’s major exports and imports?

What are Canada's major exports and imports?
What are Canada's major exports and imports?

As one of the most prosperous countries in the world, Canada has excellent trade relations with the United States, South and Central American countries and Europe, which are Canada's bilateral trading partners.

Historically, Canada has relied heavily on trade and commerce to grow its economy, exporting large quantities of raw materials, including animal skins, fish, lumber and grain. But over time, they have shifted from reliance on raw material exports to exporting more manufactured and processed goods that can bring in better income because they are more expensive.

Main export

Car

Canada is one of the world's top four auto exporters after Germany, Japan and the United States. As the ninth largest auto producer in the world, the country has a huge advantage in exporting vehicles to multiple markets. Canada's auto industry has many assembly plants where foreign automakers assemble vehicles, with the biggest customers being Japanese and U.S. brands.

The country also has hundreds of companies and factories that manufacture automotive systems and components, creating a favorable environment for the development of the automotive manufacturing and assembly industry. In fact, it is because of this that automobile assembly and manufacturing are the industrial backbone of the nation's economy. It accounts for 23% of Canada's trade with other countries.

Canada produces all types of vehicles, from trucks and passenger cars to buses and the supporting systems and parts required.

Minerals

Canada exports three minerals: precious metals such as gold, platinum, diamonds and silver; energy minerals such as coal and uranium; base metals such as copper, nickel, zinc, iron and lead; and industrial minerals such as gypsum, limestone, potash and rock salt.

Canada is located on nearly 10 million kilometers of land and has six distinct geological regions. The Canadian continental shelf is the source of the country's oil and natural gas. These metals are mainly found in the central and western regions of the country that make up the Canadian Shield. The area has the potential to discover more deposits. The Appalachian region has deposits of potash, gypsum, asbestos lead, zinc, and salt. More gypsum, limestone and rock salt have been found in the Inuit orogenic belt in the Arctic archipelago. The Canadian mountains produce more precious and base metals, which the country exports, and internal platforms increase reserves of potash, natural gas, oil and coal.

With all these deposits, Canada is a major exporter and overall producer of potash, the largest exporter of uranium, the second largest exporter of asbestos and sulfur, and the third largest exporter of platinum group metals. They are the fourth largest aluminum producer and the fifth largest exporter of gold, silver, copper and lead. 90% of the country's minerals are exported.

Crude

Canada is a major foreign supplier of U.S. crude oil, exporting 48% of U.S. crude oil imports in 2018. The country exports 96 percent of its crude oil to its neighbors, totaling 3.5 million barrels of oil per day.

Canada's Alberta oil sands hold the country's oil reserves, with even more reserves on its Atlantic coast. The country is the world's third-largest crude oil producer and exporter after Venezuela and Saudi Arabia. They invest in the exploration, production and processing of petroleum with domestic and international consumption implications.

Wood

Softwoods account for 20 percent of the country's total exports. Their forest products generate $17 billion worth of revenue, particularly from newsprint, northern bleached softwood kraft pulp and softwood lumber. Canada dominates the market share of these products and is the largest producer and exporter of the three. Although the decline in newspaper sales in North America has led to reduced demand for newsprint, the country still enjoys demand from other emerging markets in Asia and the rest of the world.

The United States, China and Japan are major importers of Canadian lumber for use in the construction industry in these countries.

Main import

Auto and auto parts

Canada, the second-largest auto market in North America, saw its auto industry-related imports increase by 1% in 2018. They import cars worth $74 billion, with passenger cars the most. As the country is upgrading its road transport system, the country also imports trucks, buses and other vehicles for transport.

Canada's main exporter is the United States, which provides more than 65 percent of the country's auto imports. Auto parts and systems cost Canada $20 billion in 2018. Importing from the U.S. is easier for Canada because the two countries have very coordinated road safety regulations for their vehicles.

Computer machinery

In Canada, computers are key components that drive machinery. They import a lot of computer machines as the country is highly automated and computerized in key areas that drive the economy. Machinery is the key to technology, and as a first world country, Canada relies heavily on technology.

These computers are also widely used by Canadians to run businesses. The country's imports of computer mechanical and optical readers increased by 8.7 units in 2018.

/ By tjchinafreight ivy / Shipping

5 major UK ports

5 major UK ports
5 major UK ports

The United Kingdom consists of England, Wales, Scotland and Northern Ireland. It is an island nation with several influential cities in different fields such as sports, culture and finance. The UK also has some of the most influential ports in the world.

Britain's five main ports

1. Felixstowe Port

Located in Suffolk, the port is also the busiest port handling 48% of the country's container trade. It happens to be the eighth busiest port in Europe, handling 3.8 million TEUs of container traffic. The port is located on the southeast coast of the United Kingdom and has access to major ports on and around the northwest coast of continental Europe.

The Port of Felixstowe is the UK's first purpose-built container handling port, serving the world's largest container ships. Due to its water depth, it can comfortably accommodate large ships, especially in the 8th and 9th berths dedicated to large container ships. The port also has three rail lines promoting intermodal rail freight, making it the largest rail transport facility in the UK. Strengthening the rail link to the port will allow 47 freight trains to pass through the port every day.

2. Port of Southampton

The Port of Southampton is a popular passenger port, but it also handles a lot of cargo. Located on the south coast of the country, it is centrally located in the region and is directly connected to the rail and road system. This means that passenger movement through the port is efficient, as is the movement of goods in and out of the port. Excellent road and rail transport is critical, as the port receives approximately 1.7 million passengers annually from cruise lines such as Royal Caribbean, Saga Cruises and Fred. Olsen Cruise line and local Cunard Line and P&O Cruises.

The port handles vehicular freight volumes of up to 820,000 vehicles per year. It is equipped with 80 hectares of facilities dedicated to vehicle storage and five multi-storey car parks dedicated to car parks to handle the storage of these vehicles. The port is home to the UK's second largest container terminal, handling more than 1.5 million TEUs a year. It clears 23 containers a day to and from major cargo producing regions such as the Midlands, Scotland, the East Coast and the country's north-west.

3. Port of London

Partly on the Thames and the North Sea, this port is the gateway to the UK's financial capital. At some point this was the largest port in the world, but now it is the second largest in the UK. In 2018, trade through the port reached 51.2 million tonnes, the highest level the port reached a decade ago. By 2035, the port expects cargo flow on its river routes to increase to 80 million tons.

The Port of London claims to have some of the best rail, road and sea connections to the rest of the UK. All cargo facilities found within this port are privately owned and operated. They handle everything from containers to dangerous goods and food, people and machinery.

4. Port Immingham

The common name for this port is Immingham Wharf, and it is one of the main ports on the east coast. Back in 2012, it became one of the UK's largest ports. It remains the UK's largest port by tonnage capacity, handling 55 million tonnes of the country's cargo each year. The port plays a vital role in facilitating the IK supply chain, ensuring sustainable power generation in the country. This is because the port will be connected to the rest of the country by the Humber River, which is largely considered to be the mouth of the UK's energy estuary.

The Port of Immingham handles 10 million tonnes of coal and 20 million tonnes of oil, cementing the port's position as access to the country's energy. Their ro-ro service serves the Scandinavian, Nordic and Baltic markets as the port is less than 24 hours away from these markets.

5. Port of Liverpool

This port is the most central port in the UK. This makes it versatile in handling all types of cargo, including agricultural bulk, container, automotive, dry bulk, forest products, energy products, metals, ro-ro, liquid bulk and project cargo.

The port has a large $400 million shipping terminal that welcomes large ships. But the port itself is also a tourist attraction. It is home to some of the country's timeless classic buildings, known as Liverpool's three charms. Arranged along the waterfront, they stand in the splendor of Edwardian Baroque architecture.

/ By tjchinafreight ivy / Shipping

What are Colombia’s main exports and imports?

What are Colombia's main exports and imports?
What are Colombia's main exports and imports?

Colombia's trade revenue accounted for more than 34 percent of the country's GDP in 2017, according to the World Bank, and its international trade has been growing and quadrupling. The country mainly trades with the United States, Germany, Panama, China, Brazil and the Netherlands. They have also signed a number of trade agreements with the United States, MERCOSUR countries, mainly Central America, the Caribbean countries and the European Union, as well as the ANC. In addition, they have signed Pacific alliances with Chile, Mexico and Peru to strengthen trade relations with Asian markets.

Exit

Coal

Coal is one of Colombia's main exports, with 33.834 million tonnes exported in the first five months of 2019, and they remain strong in coal exports. The data showed that they exported less coal in the same period in 2019 than in the same period in 2018.

However, they rebounded in the months after May, with the government reporting $738 million in revenue from coal sales to overseas markets, up 30 percent from $568 million in 2018. Colombian coal prices are expected to remain stable for the rest of the year.

Colombia remains one of the world's leading mining nations, with large reserves of natural minerals, including coal.

Oil

Colombia produces crude oil, with export earnings from this product reaching $11.1 billion. Through December 2018, the country reported an average daily production of 591.985 barrels. Colombia became an oil exporter in the mid-1980s and has not looked back since, as the US is a major importer of Colombian crude.

Colombia's crude oil exports account for 57% of the country's total exports. It exports oil through the state-owned Colombian Petroleum Corporation, also known as Ecopetrol, but the country consumes its gasoline and other fuels locally. Profits from oil exploration in the country used to be split 50 ⁄ 50 between the state and the private sector, but the private sector has invested less in the oil sector due to attacks on oil interests by many insurgents.

Flowers

Colombia is a major exporter of flowers with a wide range of markets. Due to its mild climate, the country's proximity to the equator provides a unique environment for flowers to grow. The country is the second largest exporter of fresh cut flowers in the world, with a 15% global market share. Their large flowers, thick stems, and strong fragrance make them easy to distinguish.

Of the 400 farmers who grow flowers in Colombia, 300 grow flowers for export. The country has 4,000 hectares of land dedicated to the professional production of flowers, with roses occupying the largest share. Interestingly, Colombia is the world's largest exporter of chrysanthemums, not roses, because of stiff competition from countries such as Kenya that grow the fine roses. In addition to roses, Colombia also produces mini carnations, pom-poms, chrysanthemums and six-flowered flowers. The US gets 80% of its roses from Colombia, followed by Russia and the UK.

banana

Colombia was the sixth largest banana exporter in 2019. Bananas worth $859 million were exported in 2018 with the US and Europe as the main markets. This is a 1.4% increase for the same product in 2017. In 2019, banana exports brought in revenues worth $868 million. The country was able to achieve this growth by planting more areas and renewing plantations that have ceased production.

Import

Although Colombia has very strict regulations on importing cars into the country, it is still the main import into the country. Colombian authorities do not allow the import of used cars, so only brand new cars can be imported. The exception is foreign diplomats who move to Colombia, but they must first register with the Ministry of Foreign Affairs.

The number of imported cars increased in 2018, with Chevrolet being the most imported and sold brand in the country. About 50,000 of the car were sold throughout the year. French brand Renault came in second with 49,700 units.

Mechanical

Most of the machinery imported into the country is agricultural machinery and computers. The country spent $5.8 billion on machinery and equipment imports. Most of these exports enter the country as corporate imports.

Since the country joined the WTO's Information Technology Agreement in 2012, which requires member states to remove tariffs on most information technology products, Colombia has enjoyed importing some of the latest agricultural, manufacturing and processing plant machinery and equipment, which do have contribute to its development. economy.

/ By tjchinafreight ivy / Shipping

Are you paying too much for shipping?

Are you paying too much for shipping?
Are you paying too much for shipping?

Are you paying too much for shipping? Shipping costs are a major consideration when determining the cost of doing business. Some companies can make a living with parcel shipping, but most manufacturing companies and the larger industry rely on less-than-truckload shipping at some point. LTL ("less than truckload") shipping can be expensive - especially if approached. Fortunately, there are options that prevent you from overpaying for shipping, and TJ chinafrieght can help you with that.

The first step is to collect data about your current shipping situation.

Before you can determine if you are overpaying for shipping, you must determine what you are actually paying for. It is important to understand what these costs are so that we can predict future changes in shipping costs.

Shipping rates are unlikely to drop anytime soon.

Remember, shipping has operating costs for them, and as those costs rise, they need to increase the rates they charge us to maintain their profitability. 3PL Corporation is in the business of providing customized shipping solutions to its clients and clients. This can mean anything from a dedicated account manager acting as a liaison to your company's shipping department to a dedicated service offering you co-design. Depending on the specific nature of your shipping needs, the type of 3PL service you require will vary.

LTL shipping is an essential shipping service for businesses of all sizes and in all walks of life.

As the economic landscape of the freight industry changes, the cost of traditional LTL shipping can be more challenging to your business bottom line. Fortunately, there are many tools your business has at its disposal to try and better meet your shipping needs. Want to learn more ways to save on shipping? Contact TJ chinafreight today!

/ By tjchinafreight ivy / Shipping

From May 1st, China’s coal imports will be “zero tariff”?

From May 1st, China's coal imports will be "zero tariff"?
From May 1st, China's coal imports will be "zero tariff"?

In order to strengthen the guarantee of energy supply and promote high-quality development, the Customs Tariff Commission of the State Council has decided in accordance with procedures that from May 1, 2022 to March 31, 2023, a provisional import tax rate of zero will be imposed on coal.

According to the schedule of the announcement, the provisional import tax rate of zero will be implemented this time for imported coal that originally implemented the most-favored-nation tax rate of 3%, 5% or 6%.

According to Shanghai Securities News, at present, the largest source country of my country's coal imports is Indonesia. According to the Framework Agreement on Comprehensive Economic Cooperation between the People's Republic of China and the Association of Southeast Asian Nations and the Import and Export Tariff (2021), the currently applicable tax rate is 0.

The most-favored-nation tax rate applies to coal imported from Russia, Mongolia, and Canada from other import source countries, and the tax rate varies according to different coal types. After Australia cut coal exports to China last year, Russia became my country's second-biggest coal importer after Indonesia.

A number of industry insiders said that under the scenario of high international coal prices, the tariff policy will have a limited impact on the import coal market in the short term, and may have a certain impact on the long-term supply.

According to Guosheng Securities, the current FOB price of 4600 kcal thermal coal in Russia is about US$149.8/ton. If the tariff is reduced from 6% to zero, the CIF duty payment cost will be reduced from 1430 yuan/ton to about 1350 yuan/ton. The domestic quotation of 5000 kcal thermal coal is 950-980 yuan / ton, and the price of nearly 400 yuan / ton is still upside down.

China's seaborne coking coal mainly comes from Russia, the United States, and Canada. The current price of coking coal shipped to China plus freight is about US$515/ton. If the tariff is reduced from 3% to zero tariff, the duty-paid cost will be reduced from 3965 yuan/ton to 3855 yuan/ton .

The first-line quotation of coking coal in Jingtang Port in China is 3500-3600 yuan / ton, and the price of 250-350 yuan / ton is still upside down.

Data from the National Bureau of Statistics shows that last year, China produced 4.07 billion tons of raw coal and imported 323 million tons of coal, an increase of 6.6% year-on-year. The import volume exceeded 300 million tons for the second consecutive year. The coal import dependence was 7.3%, an increase of 0.05 percentage points year-on-year.

According to Qinhuangdao Coal Network, under the circumstance that coal imports are expected to decrease, the relevant ministries and commissions of the state have organized a mid- and long-term contract to supplement the emergency guarantee for imported coal. The amount of mid- and long-term contracts signed is 158 million tons, accounting for about 49% of the country's coal imports in 2021, and the vacancy of nearly half of the total imports has been guaranteed by the policy.

In order to ensure the stable supply of domestic coal and other energy sources, some provinces in southeastern and southern China have also relaxed customs clearance restrictions on imported coal, and the customs clearance procedures of the new process have been significantly simplified.

The previous Indonesian coal import policy requires that, except for Guangdong, other South China ports need to provide terminal purchase contract endorsement. Now Guangxi has fully liberalized the customs clearance of Indonesian coal imports, and Fujian has partially liberalized. This is conducive to the rapid entry of Indonesian coal, which is intended to encourage traders to import customs clearance.

According to data from the General Administration of Customs, coal imports in March 2022 were 16.423 million tons, a year-on-year decrease of 39.9%; in the first quarter, coal imports totaled 51.812 million tons, a year-on-year decrease of 24.2%.

Zhang Jianhong, a senior engineer at China International Engineering Consulting Co., Ltd., said that the current high price of overseas coal is the main reason for inhibiting the growth of imports. The implementation of a provisional import tax rate of zero for all coal this time will help reduce import costs and expand the import of coal resources. It is the coal import from Mongolia, Russia, Canada and other countries, which can better ensure the supply, guide the downstream coal industry to reduce coal consumption, and promote the transformation, upgrading and high-quality development of the coal industry. However, until the international energy prices fall, it is expected that coal imports will be difficult to increase significantly.

/ By tjchinafreight ivy / Shipping

EU imports of Russian LNG surge by 50%

Shipping brokerage Banchero Costa said in its latest weekly market report to Xinde Maritime that the EU's total LNG imports from Russia in the first quarter of this year soared by 50% year-on-year.

It is for this reason that the EU became the world's largest importer of LNG in the first quarter of 2022.

Europe frantically imported LNG in the first quarter

Europe frantically imported LNG in the first quarter
Europe frantically imported LNG in the first quarter

The latest data provided by Banchero Costa for Xinde Maritime Network shows that in 2021, the European Union (27 countries) is the world's third largest importer of seaborne LNG, accounting for 15.8% of global seaborne LNG imports

In 2021, China will be the world's largest LNG importer with a share of 20.2%, followed by Japan with 19.7%.

Earlier in 2020, the EU imported 62.8 million tonnes of LNG, down 4.2% from 2019.

In 2021, EU LNG imports will actually decrease further, to only 58.5 million tons, a further 6.8% drop from 2020.

But the turning point came so suddenly. In the first quarter of this year, with the outbreak of the Russian-Ukrainian conflict, dramatic changes took place.

In the first three months of 2022 (the first quarter of this year), the EU imported 22.1 million tons of LNG by sea, a jump of 72.8% from 12.8 million tons in the first quarter of 2021. This made the EU become the world's largest LNG importer in the first quarter, with a share of 20.9%!

The United States and Russia are the main sources of increased European imports

The United States and Russia are the main sources of increased European imports
The United States and Russia are the main sources of increased European imports

The US is a major incremental contributor to European LNG imports, with the EU importing 10.4 million tonnes of LNG from the US in the first three months of 2022, an increase of 234.8% from 3.1 million tonnes in the first quarter of 2021. In the first quarter of 2022, U.S. gas accounted for 46.9% of European seaborne LNG imports.

In the first quarter of 2022, the EU imported 4.1 million tons of LNG from Russia, an increase of 49.1% from the 2.7 million tons in the first quarter of 2021. This is an all-time high. The EU has never imported more LNG from Russia than this year. In the first quarter of 2022, Russia accounted for 18.3% of EU seaborne LNG imports.

In fact, March 2022, when the Russian-Ukrainian conflict broke out, is also the highest month in history for Russian gas imports into the EU.

In March 2022, the EU imported 1.6 million tonnes of LNG from Russia, a 14.5% increase from February 2022 and a 34.3% increase from March 2021.