logistics Archives

How to Pick Up Your Oversea Ocean Cargo?

Picking up overseas ocean cargo involves several steps, and the specific process may vary depending on the country and port of origin, the carrier, and the nature of the cargo. However, here are some general steps that can help guide you:

FCL

To pick up FCL Ocean Cargo, you’ll need to pay your freight payment. Once paid, the ocean carrier will send their release over to the terminal. Your customs release will also need to be cleared. Then, the terminal will update their system to show that all releases has been cleared. Original Bill Lading may or may not be needed depending on your shipment terms.

LCL

To pick up LCL Ocean, you’ll need to pay a warehouse fee once your shipment is available at a Container Freight Station (CFS) warehouse. The carrier sending you the arrival notice for the shipment will also have fees that will need to be paid. Once these fees are paid, the carrier can send a release order over to the CFS warehouse.

Obtain the necessary documentation: You will need to obtain the necessary documentation to claim your cargo, including the bill of lading, cargo manifest, and any other relevant documentation required by the port and customs authorities.

Check the arrival date and location: Once your cargo has arrived at the destination port, you will need to know the exact location and date of arrival. You can obtain this information from your shipping company or freight forwarder.

Arrange for transportation: Once you have the necessary documentation and know the arrival date and location of your cargo, you will need to arrange for transportation to pick up your cargo. This may involve hiring a local trucking company or arranging for a freight forwarder to handle the transportation for you.

Obtain clearance from customs: Before you can take possession of your cargo, you will need to clear customs. This involves submitting the necessary documentation and paying any fees or tariffs that may apply. You may also need to undergo a physical inspection of your cargo.

Pick up your cargo: Once your cargo has been cleared by customs and transportation has been arranged, you can pick up your cargo from the destination port. Be sure to have all necessary documentation and identification with you.

It is important to note that the process of picking up overseas ocean cargo can be complex and time-consuming. It is recommended that you work with an experienced freight forwarder in China or shipping company to ensure that your cargo is picked up and transported safely and efficiently.

November 26, 2022 / By TJ China Freight / International • Logistic • Moving • sea freight forwarder • Shipping

4 Differences Between Freight Forwarding and Shipping Agency

The logistics industry is closely linked, and the knowledge of freight transportation is something that every logistics person needs to understand. If you can master the entire industry chain, it will be like a godsend for your future development. In the shipping business, we often hear about freight forwarding and shipping agency, and TJ CHINA FREIGHT will introduce them to you.

Shipping agency, that is, the unit that acts as an agent for business related to ships, and its scope of work includes handling water diversion, quarantine, tugboat, berthing, loading and unloading, materials, certificates, etc. The shipping agent is responsible for the ship business, handles the ship import and export procedures, coordinates the ship and port departments to ensure the smooth progress of loading and unloading, and completes the ship’s entrusted matters, such as replacement of crew, materials, food supplies, ship voyage repairs, etc. Sometimes the ship will also entrust the shipping agent to sign the bill of lading.

Freight forwarding is a freight forwarder, not the actual carrier of the shipping company. Freight forwarding, logistics (third party), and freight companies are essentially the same. A freight forwarder is different from a shipping agent. The shipping agent can handle booking, signing, changing the order, and releasing containers on behalf of the shipping company, which are functions that the freight forwarder does not have.

Here are some differences between freight forwarding and shipping agency in detail:

Different definitions

Freight forwarding: The full name is freight forwarding. Refers to the entrustment of the owner to complete a certain link in the import and export logistics transportation of goods or a link related to this. Common freight forwarding work includes import and export by air, import customs clearance, import declaration and so on.

Shipping Agency: The full name is Shipping Agency. It refers to the formalities and coordination work related to the ship business, and ultimately ensures the smooth progress of cargo loading and unloading. Common shipping agency work includes: quarantine, towing, loading and unloading cargo, signing bills of lading, etc.

Different responsibilities

The freight forwarder is essentially the same as the third-party logistics. It is not the actual carrier of the shipping company, but the consignor of the cargo owner, helping the cargo owner to handle the connection and communication of the cargo in the import and export logistics. The shipping agency mainly provides a series of specific services for ships and shipping companies.

Different service objects

Freight Forwarder: Serving the vast number of foreign trade, factories and cargo owner friends, it is the link between the cargo owner and the carrier.

Shipping Agency: Serving the shipping company, it is a bridge between the shipping company or the carrier and the port.

Others

Freight forwarding: generally divided into first-level freight forwarding and second-level freight forwarding. The first-level freight forwarder can directly book space with the shipping company, but it is not necessarily qualified to book space, and the second-level freight forwarder is not necessarily worse than the first-level freight forwarder. It depends on the qualification and ability of the freight forwarding company. Not all freight forwarders are omnipotent, and not all freight forwarders have the same scope of work.

Shipping agency: The LCL booking is made by the freight forwarding company, and the shipping company generally does not accept LCL, so the LCL bill of lading is generally not the shipping company’s bill of lading.

Generally speaking, the shipping agent is not the same as the freight forwarding agent. The freight forwarding agent may be the shipping agent, and the shipping agent must be the freight forwarding agent. The choice of the freight forwarding agent mainly depends on its service. After the service is the price, so the freight forwarder with good cost performance is the first choice! TJ China Freight hopes to provide you with satisfactory service and a more cost-effective choice!

May 24, 2022 / By tjchinafreight ivy / Shipping

Why you should choose FOB over CIF when importing from China

Significance of choosing a CIF

Under CIF, the buyer takes ownership of the goods only at the port of destination. The seller is responsible for cost and shipping, and the transfer of title takes place at the port of destination. This is usually subject to a third person, usually a customs agent whose consignee is listed on the bill of lading.

This means that the agent, not the buyer, has the legal right to claim against the goods. The agent will then ask the buyer to pay for the destination, including customs clearance, taxes, etc.

Many novice buyers find this option particularly advantageous because they are relatively not responsible for the goods - logistically and financially. Also, Chinese suppliers often offer lower prices if buyers agree to CIF Incoterms.

Why are you so obsessed with CIF?

As you can imagine, there is a problem with choosing a CIF. This is a pretty bad practice for imports from China. Here are some features of CIF incoterm:

Prices for purchasing items under CIF are very low and competitive - often much lower than under FOB incoterms.
You usually don't know about item management as this is handled by the seller.
You are also often unaware that the consignee on the bill of lading is listed as the clearing agent (at destination), not yourself. (This applies to MBL or Carrier B/L)
After the goods arrive at the port of destination, certain decisions made by the agent may result in you having to pay five times the actual required fee. In addition to the arrival fee that every importer should pay above, you run the risk of ending up having to pay more. These include handling fees, exit fees, entry fees, etc. - basically the agent's concept of "own" to drive up prices, or unexpected surcharges on standard fees such as terminal fees.
Plus, having control over merchandise means they have better control over time. This means they may be in their favor - waiting for your item to arrive before notifying you. This will incur additional charges because you do not have enough time to schedule the delivery. This results in delays and additional charges that you must pay and settle before picking up your shipment.

FOB or CIF: Investigate Before Choosing

Common practices include an agreement between the destination agent and the seller to set a low price for the item being sold. This is to lure you before the destination inflates the cost, and then divide that profit among them. This has happened quite a bit with products imported from China, and such cases have been on the rise in recent years, especially in Latin America.

FOB works well for LCL as profit margins tend to be lower. As a result, this gives sellers and agents more power to drive up prices. If you're considering choosing a CIF Incoterm, you should ask yourself if it's really worth exposing yourself to such a risk at a low cost.

Advantages of choosing FOB over CIF

Unless you are dealing with a seller or agent you can trust, or have an agreement to list yourself as the consignee on the bill of lading, it is best to choose FOB Incoterm to avoid risk. FOB Incoterm provides features that CIF Incoterm does not. The responsibility for paying, contracting and managing the goods rests with you, the buyer.

Although it requires some extra effort on your part compared to a CIF, it is much less risky as you get immediate clarity on the costs involved. That said, problems like delays and unexpected extra costs can be avoided with good planning.

FOB also has the following advantages:

By controlling the agents involved, the buyer is able to exert pressure to lower the commercial price.
By minimising costs, it enables buyers to obtain tax benefits, such as a reduced VAT burden.
FOB also allows buyers to get better insurance prices, as you'll be looking for deals that cover most of your logistics. Unlike CIF, CIF only covers the movement of goods from the port of destination to the buyer's facility.

FOB or CIF: Considerations

One thing to keep in mind when choosing FOB is that complications can arise if the supplier refuses to work with the shipping company of your choice. Suppliers sometimes receive certain rebates for using specific freight forwarders and may therefore be reluctant to work with other consignees. This is a fairly common question. Therefore, the consignee should be prepared to put pressure on the shipper to help the freight forwarder smooth the process.

In short, new importers should not commit to CIF Incoterm unless you are familiar with seller practices. This is especially true when dealing with products imported from China. It is always recommended to use the services of a freight forwarder and choose FOB Incoterm when the situation allows. This is to avoid unpleasant surprises when the goods arrive. If you have any questions about choosing FOB or CIF, please feel free to contact our sales experts at TJ chinafreight!

May 24, 2022 / By tjchinafreight ivy / Shipping

6 Facts About Drug Shipping

Pharmaceutical transportation

If ocean shipping is not a sufficiently challenging process, try to imagine pharmaceutical shipping. We are talking about the logistics of drugs, pharmaceuticals, biomaterials, etc. Not only do these need to be kept at extremely precise temperatures, any issues in shipping can result in huge financial losses or worse, without potentially saving a life.

Logistics companies are often under enormous pressure to deliver medicines under high demand. These typically include zero damage, zero lateness and the possibility of track and trace.

To maintain accurate temperatures during transport, companies often use special equipment, including cryogenic containers, dry ice, thermal blankets, and insulating packaging. Sometimes temperature sensors are also included to monitor the temperature of the product throughout shipping.

But, of course, it never goes as smoothly as it looks in transit, and it's always a good idea to have extra resources on hand. In the event of delays such as Food and Drug Administration (FDA) inspections or other unexpected setbacks, further steps may be required.

Here are six interesting facts about pharmaceutical shipping.

Medicines need to be kept at precise temperatures to maintain their efficacy. These include the flu shot and insulin.
Pallet insulation blankets can be used to protect from sunlight, humidity, etc. It maintains a constant temperature range around 15°C to 25°C.
7 out of 10 leading pharmaceutical products require temperature-controlled shipping.
Biological materials (e.g. blood, tissue, reproductive material) and clinical trials need to be stored in cryogenic containers that can be kept at -150°C for at least 10 days.
A temperature change of as little as 2°C can completely destroy a drug product.
Pharmaceutical companies lose an average of $150,000 per small package shipped due to cooler temperatures. For larger shipments, this can cost millions of dollars.

May 23, 2022 / By tjchinafreight ivy / Shipping

How hurricanes affect shipping and logistics

Be in awe of the fanatical of all storm chasers. The clean-up operation began shortly thereafter. But that's expected to last for a while -- if not longer. On land, the cleanup can be both physical and emotional for some. But on land, companies continue to struggle to restore some sort of logistical normalcy.

Hurricane Precautions

Hurricane Irma was one of the five strongest hurricanes on record in the Atlantic. Thanks to highly sophisticated weather forecasting technology, early warnings are issued. Given their seriousness, the recommended precautions are noted. Shipping operations ceased, with suspected operations all the way to the South Carolina port. Cruise ships such as Carnival Corp and Royal Caribbean Lines canceled various sailings. All this is to avoid the wrath of nature.

It is better to be safe than sorry, and shipping operators who have the ability to divert their ships away from danger should definitely do so. But this has considerable financial implications. An 8,000 container ship can consume up to 225 tons of fuel per day. For cruise ships, the number could be as high as 250. That said, even minimal diversions can be costly to operators.

Logistics disruption caused by hurricane

Despite all the precautions taken for Irma, delays are bound to be disruptive. Not only the maritime industry, but the logistics industry as a whole. it has. Irma After the past few days, intermodal shippers continue to face delays for cargoes that need to be transported by rail through the southeastern United States. Even industry giants like Amazon have struggled to deliver on the two-day delivery promises it promises customers.

Other inconveniences include passing less cargo through the port or finding yourself having to store additional cargo. Thanks to shippers, many ports have waived or reduced delay fees. Certain operators also stopped their demurrage and demurrage clocks as Irma approached and restarted them when ports began to reopen. But even so, shippers may still find themselves having to pay truckers additional freight, storage fees, or possibly make other plans to get their goods to other ports.

May 23, 2022 / By tjchinafreight ivy / Shipping

Five Mistakes in Shipping

Shipping is a huge industry. Almost every trade or business has been exposed to ocean shipping at some point. If you're thinking about venturing into the business world and considering ocean shipping as your primary mode of transportation, there are certain misconceptions you need to be aware of.

Get familiar with the facts to avoid nasty surprises that can cost you unnecessary delays. In this article, we'll address major misconceptions about ocean shipping.

1. Shipping is expensive

Not exactly correct. Yes, there is a cost to shipping. But compared to other international shipping methods, sea freight is definitely the most cost-effective. If you didn't already know, shipping accounts for 90% of world trade. That said, it is clearly the best and most cost-effective option for global importers and exporters.

If you're moving overseas and want to ship your household items by sea, reducing the number of items you bring with you when you move may cut costs. If you're looking for a cheap outlet, maybe it's best to consider leaving these behind (depending on their value) and buying new furniture in your new destination country.

At the end of the day, your final shipping fee depends a lot on how many items you're shipping. This brings us to the next point.

2. I can ship anything I want

Incorrect. Everything you put in the container needs to be listed on the packing slip and then submitted to customs inspection. Each country has its own regulations for certain commodities and commodities. Some items may be prohibited, while others may require you to obtain a special permit to enter. For example, if you're shipping wood-related items or have wood packaging material, you must make sure they're pre-treated. When in doubt, always consult your freight forwarder.

3. Container freight is always the same

You can't get any further from the truth. Not only do container shipping rates fluctuate regularly, they are also affected by many factors - some beyond your control. These include seasonal, political, and economic (demand and supply) factors. You should also be familiar with the concept of general rate increases or GRIs announced by shipping companies from time to time.

4. The content I post is private and not accessible to anyone but me

Sound the alarm! Even if only a fraction of the world's containers are inspected, you should not assume that your cargo will not be marked (randomly or otherwise) for inspection. For shipments arriving in the United States, the number is higher. But not a lot - 5%. U.S. Customs has only gotten stricter over the years, which means you should always be prepared for inspections that may occur.

5. I can plan my supply chain based on the estimated arrival date of my shipments

The latest figures show that only 74.7% of ships arrive on time. In other words, one out of every four shipments is late. If you think you can plan your logistics based on the estimated arrival date indicated by the shipping line, think again. The reliability of the carrier program has declined compared to last year and is still returning to its previous on-time rate. Late arrivals are not uncommon and can be the result of a variety of factors, including natural phenomena such as hurricanes, large shipments, etc. Keep up with the latest shipping news and keep up to date with the latest industry developments.

May 21, 2022 / By tjchinafreight ivy / Shipping

Importer’s responsibility

Shipping Liability

International shipping involves multiple parties, so when something goes wrong, it can be difficult to identify the party responsible for every part of the process. As a participant in this intricate relationship, you need to understand not only your own responsibilities, but the responsibilities of other parties involved. Not knowing the responsibilities of your suppliers or freight forwarders is a huge risk for importers. In an industry as complex as ocean shipping, there is only a very fine line between risk and logistical disaster.

Importer's responsibility

1. Submit the necessary shipping data to the agent so that he can coordinate the shipment with the supplier
Such data includes the contact's email, name, phone number, and the name of his company. This information is key to streamlining the process. This is especially true when you are pressed for time. Given the time difference, it is best to provide this data as early and as accurately as possible. It can take up to two days to start processing your import from the moment you provide your supplier's contact information to the freight forwarder.

Advice: Once you confirm your purchase and know your item is in production, you should start managing your bookings with your forwarder to speed things up, rather than waiting days or even weeks for production to complete. The origin agent can update the freight forwarder at any time during the production process so that you can amend your booking if needed.

2. Know the working conditions of the Incoterm you choose for international sales, such as the back of the hand
It is not uncommon for suppliers to want to modify previously agreed terms. They may want to convert from FOB to CIF, which can be risky, or to EXW, where the importer takes care of most of the process.

What is the role of the freight forwarder if the Incoterm has not been agreed at the last hour?

At this point, there is nothing the freight forwarder can do except get a reply from both parties. Ultimately it is up to the importer to ensure that the supplier follows the agreement and most importantly, that the terms and conditions are properly reflected in the contract.

3. Liaise with your supplier to decide who will provide the specific documentation your item may need at origin and destination
Depending on the nature of your product, you may need to submit additional specific documents.

For example, a test report is one of the most common certificates of origin when importing into the EU. It certifies that the shipped goods meet the minimum quality conditions (strength, durability of materials, etc.) required by the European Economic Community.

In addition to different certificates of origin and destination, you may sometimes need to present other specific documents for import. In the case of importing honey into the EU, a certificate of origin is always required. And because it is an animal product, both importers and exporters must be registered in TRACES (Trade Control and Expert System).

The consequences of not preparing these specific files for your imports are dire. If your shipment has reached its destination and the deadline for you to present these supporting documents has passed, customs will ask for one of two solutions: re-export the shipment to the country of origin or destroy it. The important thing to note here is that any additional costs incurred as a result will be fully borne by the importer.

May 20, 2022 / By tjchinafreight ivy / Shipping

America’s Largest East Coast Port

A massive union strike in California a few years ago forced many BCOs to look for alternatives to reach the continental U.S. rather than via the West Coast.

In a way, some experts say, it was the perfect precursor to the expansion of the Panama Canal and the opportunity it now offers East Coast ports.

East Coast ports are undoubtedly taking advantage of changing tides with massive expansion and investment up and down the coast.

Here's a look at the largest ports on the U.S. East Coast and what they're doing to accommodate the growth in demand and opportunity.

1. Ports of New York and New Jersey

New York/New Jersey ports are estimated to account for more than one-third of North Atlantic trade.

In response to increased competition from other East Coast ports and to be able to handle larger ships from the newly expanded Panama Canal, the port has deepened its port to 50 feet.

It has completed the raising of the Bayonne Bridge connecting New Jersey and Staten Island, New York, and can now handle vessels up to 18,000TEU.

2. Port of Savannah

Its intermodal system is being improved to gain better access and increase its market share in the Midwest, making the port a more cost-effective and viable option.

When these projects are completed, port authorities estimate that U.S. businesses could save up to 40 percent in shipping costs through the port.

3. Port of Virginia

The project became the deepest port on the East Coast.

Investments in intermodal transport have also begun - particularly the expansion of port rail and motor transport.

4. Port of Charleston

Container traffic at the Port of Charleston has grown 8 percent annually since the recession ended in 2009. This is largely thanks to changes in trade flows in and out of Asia rather than Europe.

The port is also currently being deepened to accommodate 18,000TEU vessels - up from the 14,000TEU vessels currently capable of handling.

May 20, 2022 / By tjchinafreight ivy / Shipping

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.

May 19, 2022 / By tjchinafreight ivy / Shipping

What does Germany export?

EU's largest economy

As the EU's largest economy, Germany accounts for about one-fifth of the EU's overall GDP. It has been enjoying economic growth for nearly a decade. But it seems the tide may be turning.

The world's largest car exporter

As the world's fourth largest economy, Germany also has a pivotal economic presence on the world stage.

This is especially true for the auto industry, where five of the ten most valuable car brands have Germany as their home. That said, it's no surprise that Germany is the world's largest auto exporter.

In fact, around 21 percent, or one in five cars shipped around the world, is exported from Germany, according to the Economic Comprehensive Observatory. The second-largest car exporter is Japan, which accounts for around 14 percent of Germany's exports.

Of Germany's car exports, 58% are exported to other European countries. Asia and North America received 21% and 16%, respectively.

With the U.S. now threatening to impose tariffs of up to 25 percent on cars and auto parts imported from the European Union, the German auto industry has reason to worry. Outside of the European Union, the United States is the largest importer of German cars.

Germany's largest trading partner

German exports totaled $1.33 trillion in 2017, up from $1.25 trillion in 2016. Two-thirds of them are European countries.

By country, Germany's largest export destinations are the United States, France, China, the United Kingdom and the Netherlands. Collectively, these five countries receive more than one-third of Germany's exports.

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