/ By tjchinafreight ivy / Shipping

What is inventory optimization?

What is inventory optimization?
What is inventory optimization?

Logistics companies are constantly striving to optimize their supply chains. Inventory optimization (IO) is one of the most important parts of the process. IO can be defined as "the act or process of identifying and reducing waste in an inventory system".

Key Elements of Inventory Optimization

Optimizing your inventory means you'll determine exactly how much and when of each SKU you need to order to consistently serve your customers. Inventory optimization takes into account seasonality and activity as well as supplier delivery times and schedules. That way, you'll always have the right product in the right warehouse without taking up too much inventory. This blog post will briefly describe the key elements of optimizing inventory and links to resources that will give you more details on each key concept:

1. Demand forecast

There are several ways to forecast demand, including looking at last year's or previous period's demand or a salesperson's request forecast. This works for some SKUs, but on other projects, these approaches can send you down the completely wrong track.

2. Inventory Policy

The next step is to determine your inventory policy, which means deciding which products to stock and how much to keep in each unit.

3. Replenishment

Last but not least is inventory replenishment. This is to calculate reorder points and order quantities and convert them into actual orders.

The benefits of inventory optimization in the logistics industry

Inventory optimization in logistics is a process designed to maximize the use of available space and time while minimizing the number of shipments. Achieving the best inventory optimization strategy depends on the supply chain, demand patterns, and inventory management systems. The main benefits of inventory optimization for the logistics industry are:

Improve customer satisfaction

In the logistics industry, one of the most important things is customer satisfaction. Not only is this because you want to keep your customers happy, it also increases your profits when they are happy with their purchase or service. It can be difficult for companies to figure out what customers are looking for. Businesses need to meet customer demand by determining how much inventory is needed and where it is located. Inventory optimization software can help solve this problem.

Reduce costs

By monitoring the time it takes for goods to move through the supply chain, you can reduce transportation costs such as storage and shipping fees. This means increasing the profit margin of your business. The logistics industry is always looking for ways to reduce costs. Inventory optimization is one of the best ways to do this because it reduces inventory levels and reduces storage and handling expenses.

Inventory management helps reduce your spending on warehouse space, labor and shipping costs. It increases productivity, thereby reducing overtime and turnover for driver-operators and customer service personnel in distribution centers. The store management course will teach you the techniques and knowledge to systematize a distribution center or warehouse.

Improve service quality

Service quality is an important factor in the logistics industry. However, achieving and maintaining a high level of service is difficult due to the complexity of managing inventory and assets in these systems. Improved service quality is one of the benefits of inventory optimization that can lead to more profits for a business like yours. The goal of any business owner should be to provide customers with high-quality service that meets their needs. Inventory optimization can help you do just that!

In conclusion

The logistics industry is one of the most important industries in the world. It is responsible for delivering goods to their destination on time and with less chance of damage or loss. Without inventory optimization, it would be impossible for these companies to effectively do what they need to do. Fortunately, implementing an inventory management solution into your company's processes brings many benefits!

/ By tjchinafreight ivy / Shipping

3PL vs. 4PL Logistics Services

3PL vs. 4PL Logistics Services
3PL vs. 4PL Logistics Services

What is Third Party Logistics (3PL)?

Third-party logistics (or 3PL) refers to the outsourcing of e-commerce logistics processes to third-party operations, including inventory management, warehousing, and fulfillment. 3PL providers allow e-commerce merchants to do more and use tools and infrastructure to automate retail order fulfillment.

What are the benefits of 3PL services for your business?

-Cost Savings- Your company will definitely have less supply chain functions than a professional logistics company. Thanks to their exclusive relationship in the field of logistics, you can save a lot of driving costs.

-Expert Fulfillment - Supply chain logistics is not that simple and can be a daunting task without the help of experts. Expert shipping, warehousing and fulfillment is something you cannot ignore. That's what 3PL Logistics Services offers you while simplifying the entire process.

- Shorter lead times - 3PL service providers will definitely specialize in shipping services. Their large delivery fleet will expedite the entire delivery process and provide your customers with same-day delivery.

-Reverse Logistics - It's very frustrating when a customer returns your product. However, it is part of the business. Plus, you don't have to bother collecting returns because 3PL convenience includes reverse logistics in the transaction.

What is (4PL) Fourth Party Logistics Service?

4PL or fourth party logistics service is a supplement to the existing 3PL logistics service.

In this operating model, not only 3PL services but also other supply chain facilitation are provided.

Manage the resources, infrastructure, technology and other related aspects of a specific business.

4PL Logistics consists of a partner (company) who is responsible for all outsourced logistics as well as accessing, building, operating and designing supply chain solutions.

What are the benefits of 4PL?

There are many benefits of 4PL logistics services, one of the main advantages is trusted publicity.

4PL providers make long-term commitments to customers. The association is a valuable partnership and is very effective in achieving the common goals of the business.

4PLs are responsive in terms of customer connections, utilizing online interfaces to meet the modern needs of customers.

The main idea of ​​this logistics service is to eliminate inefficiencies and simplify business work.

In short, business expansion is completely possible and feasible with the assistance of professional partners of 4PL Logistics Services.

3PL vs 4PL: What's the Difference?

When researching 3PL, you may come across the term 4PL. 4PLs add an additional level of separation between e-commerce merchants and the 3PLs that ship their products: When businesses contract with 4PLs, 4PLs manage and arrange 3PL services for customers. This is sometimes called "dual agency".

4PL companies typically provide customers with end-to-end supply chain management, including 3PL services, manufacturing, inventory procurement, and more.

/ By tjchinafreight ivy / Shipping

Supplementary charges for port terminal canals

Everyone also knows that there are many types of shipping surcharges. In order to make up for their own losses in various aspects, the ship party has added a number of surcharges in various names. However, among the marine surcharges, some charges are imposed by the port, terminal, or canal authority. Do you understand this kind of cost? Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities.

Notice to sellers: Analysis of these additional costs for port canals

Supplementary charges for port terminal canals
Supplementary charges for port terminal canals

Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities. The canal authority adds a surcharge to the ship owner based on each vessel’s net Suez tonnage and the canal rate table, and the owner collects this fee from the customer in the form of the Suez Canal Surcharge.

Everyone also knows that there are many types of shipping surcharges. In order to make up for their own losses in various aspects, the ship party has added a number of surcharges in various names. However, among the marine surcharges, some charges are imposed by the port, terminal, or canal authority. Do you understand this kind of cost? Today, I will use the simplest language to tell you about the surcharges imposed by the port, wharf, and canal authorities.

Notice to sellers: these kinds of additional charges on the port canal

Port Surcharge (PS)

In some ports, due to poor equipment conditions or low loading and unloading efficiency, as well as other reasons, the shipping company charges additional fees. It is generally calculated as a percentage of the freight, but some ports charge it per freight ton. Each freight ton is calculated by the gross weight of the goods or by volume. The difference between it and the port congestion surcharge is that the port surcharge is relatively fixed.

Port Congestion Surcharge (PCS)

Due to the congestion of some unloading ports, the berthing time of ships at the port will increase, which will affect the operating costs of the shipping company. In order to make up for this part of the loss, the surcharge charged by the shipping company to the cargo party is the port congestion surcharge. This part of the fee is directly affected by the degree of port congestion. If the port returns to normal, this part of the fee will be cancelled, but the port congestion surcharge has been charged when the freight is prepaid and will not be refunded.

Terminal Handling Charge (THC)

Terminal operation fee refers to the fee charged by the port, terminal, and loading and unloading company to the carrier to receive the exported container at the loading port yard, store it and transport it to the side of the ship, which includes the container cargo during the terminal period. All loading and unloading, translation, hoisting and hoisting costs and corresponding labor costs. According to the port of departure and the port of destination, the terminal operation fee can be divided into two types: the terminal operation fee at the departure port (OTHC) and the terminal operation fee at the destination port (DTHC).

/ By tjchinafreight ivy / Shipping

What is a manufacturing certificate?

What is a manufacturing certificate?

A manufacturing certificate is a notarized or certified document that certifies that the goods ordered were manufactured by the manufacturer and are exclusively at the buyer's risk and responsibility. Suppliers of finished products use this certification to show if any changes have been made to a specified recipe or process. The revision date needs to match the date on the master file to be valid.

How to use the manufacturing certificate?

The certificate of manufacture issued by the manufacturer must be on company letterhead and include the following information. The certificate should have:

  • Manufacturer's name
  • Product name
  • Batch number
  • Item Number
  • Revision code
  • Revision date
  • Certificates in support of claims of lack of product modification
  • The name of the quality control manager performing the certification
  • Signature of the above quality control manager
  • Date signed
  • Import Approval Certificate

Manufacturing Certification

Whether someone works in a manufacturing environment or is considering a career in the field, there are many different options available for certification. General manufacturing certification is not available, instead, manufacturing certification usually falls into one of two categories. The first includes an industry-related diploma or certificate. This is given after someone has undergone detailed work experience and training in a specific industry, such as an electrician or a tool and die maker.

The other category relates to specific aspects of the wider industry. Every company that produces goods falls into this category. The training will cover details of specific parts of this process. Jobs such as logistics, quality certification, safety and health training, and engineering technicians can be found here.

/ By tjchinafreight ivy / Shipping

Do I need a license to export from the US?

Do I need a license to export from the US?
Do I need a license to export from the US?

What is an export license?

An export license is a government document authorizing or permitting certain export transactions, including technology exports. Export licenses are issued by the appropriate licensing agency after careful review of the facts regarding a particular export transaction.

Most U.S. export transactions do not require special approval from the U.S. government in the form of a license. In fact, only a small percentage of all U.S. export transactions require permission from the U.S. government. It is up to the exporter to decide whether the product requires a license and to study the end use of the product, in other words, to conduct "due diligence" on the transaction.

For most U.S. exports, the Bureau of Industry and Security or the U.S. Department of State's Defense Trade Controls Agency is the licensing agency.

Exporters should understand which federal department or agency has jurisdiction over the items they plan to export to determine whether a license is required.

Do I need a license?

This is one of the most frequently asked questions by trade experts in the U.S. Commerce Service Office network. The answer is usually no, as approximately 95% of all items exported from the United States do not require an export license. As a result, only a small percentage of U.S. export transactions require permission from the U.S. government.

These laws and regulations determine whether you can sell your product to international buyers, to which countries you can export it, and to which buyers you can sell. However, just because your product is among the 95% that don't require a license, doesn't mean you can sell it to anyone, anywhere.

It is up to the exporter to decide whether the product requires a license and to study the end use of the product, in other words, to conduct "due diligence" on the transaction.

For most U.S. exports, the Bureau of Industry and Security or the U.S. Department of State's Defense Trade Controls Agency is the licensing agency. Exporters should understand which federal department or agency has jurisdiction over the items they plan to export to determine whether a license is required.

Export Administration Regulations and Bureau of Industrial Security

Most U.S. procured items and some internationally procured items deemed dual-use (those with commercial and military or proliferation applications), as well as some purely commercial or purely munitions items, are subject to the Export Administration Regulations (EAR) and are and Security Bureau (Bank for International Settlements). The EAR controls exports for reasons of national security, foreign policy, supply shortages, nuclear non-proliferation, missile technology, chemical and biological weapons, regional stability, crime control, and counterterrorism.

Items within the U.S., certain items located outside the U.S., and certain U.S. activities are subject to the EAR. To determine if your item (commodity, software, or technology) is subject to the EAR, see the EAR's Commerce Control List (CCL) to see if it has an Export Control Classification Number (ECCN). If your item falls under the jurisdiction of the U.S. Department of Commerce and is not listed on the CCL, designate it as EAR99. Most EAR99 commercial products do not require a license to be exported. However, even EAR99 items may require a BIS export license depending on the item's destination, end user or end use.

/ By tjchinafreight ivy / Shipping

Shipping from China to Mongolia

If you are looking for a reliable freight forwarder to help you ship from China to Mongolia, you have come to the right place.
Even now the shipping service from China to Mongolia is very mature, TJ-chinafreight will always try to do better in logistics, in addition to the best solutions and good service, we can also provide competitive shipping from China to Mongolia s price.
TJ-chinafreight will help you choose the best shipping route, competitive shipping cost and the best shipping company to help you import from China to Mongolia.

China and Mongolia on the map

Shipping from China to Mongolia

Rail Freight

The total transportation time of international railway container transportation from China to Mongolia is about 10 days. It takes 5 days to ship from Shantou Port and Nansha Port to Tianjin Port. It takes 1 day to switch from Tianjin Port to railway transportation. It takes about 5 days from Tianjin Railway Station to Ulaanbaatar Railway Station in Mongolia. Of course, it usually takes 3 to 5 days for loading and export declaration at the port of departure. It takes three days for the goods to arrive at the destination railway station Ulaanbaatar for customs clearance and pickup.

railways
railways

Compared with traditional truck transportation, China's railway transportation to Mongolia is several days faster, but the transportation volume has increased a lot, which can meet the market demand. The overall freight is more than 50% cheaper than truck transportation, and the safety is more than 100% higher than truck transportation. Shipping and rail transportation are completely stable, and there will be no emergencies such as trucks breaking down or running out of oil on the road. Uncertainty about trucking

Sea Freight 

China is approximately 7,775 kilometers from Mongolia, but it may take longer to traverse this distance due to the sea route defined by the body of water.
Shipping by sea is determined by the location of the port used and the nature of the goods being transported. Very large shipments are usually shipped by sea.
While it took time to get to the final destination, it turned out to be the cheapest ever.
Before choosing this shipping method, one must be familiar with the different ports in China and Mongolia.

Air Freight

Due to the limited air service facilities currently limited to passenger flights in Mongolia, we can provide a wide range of air-land intermodal service solutions for volume sensitive (large volume) or oversized and heavy air cargo from all over the world. These are the best options in terms of saving shipping time and economical efficiency.

Why choose TJ-chinafreight?

If you are looking for the best freight forwarders on shipping from China to Mongolia, we can help! We focus on international transportation between China and the world, which is professional and competitive to support your international purchase.
Our one-stop service will make your business better and easer.

/ By tjchinafreight ivy / Shipping

A Russian shipyard closes due to sanctions

View of ships and cranes in the Kaliningrad river port, Russia.
View of ships and cranes in the Kaliningrad river port, Russia.

After the start of the Russian-Ukrainian conflict, Russia was subject to severe international sanctions, and the Ukrainian Defense Intelligence Service claimed to have obtained an internal document of the Russian Ministry of Defense, which showed that the JSC Vostochnaya Verf shipyard in Vladivostok, in the Far East, Experiencing financial difficulties. Due to factors such as lack of raw materials, production will be completely suspended from April this year, and employees will be fired.

It is understood that the Oriental Wilf Shipyard was founded in 1952. In order to meet the needs of the former Soviet Pacific Fleet and the Far East Frontier Forces, it built small tonnage ships such as minesweepers, which played an important role in the provision of Russian shipping and military equipment. It was changed to a joint-stock company in 1994. From the 1950s to the 2000s, the shipyard built more than 400 vessels for the navy, border guards and fisheries, and exported more than 30 sets to 8 countries in the world (China, Vietnam, Cuba, Indonesia, Ethiopia, Guinea, Iraq, Yemen) military equipment.

Currently, the Vostochnaya Verf shipyard is part of Russia's United Shipbuilding Corporation (USC). Since January 2020, the shipyard has been the sole contractor for the Russian Ministry of Defense's projects in the Far East and is home to the Free Port of Vladivostok (CPV). The shipyard can build ships with a length of 120 meters, a width of 16 meters, a depth of 25 meters and a displacement of 3,500 tons.

The Ukrainian Defense Intelligence Service said that due to financial difficulties and a lack of imported components and raw materials, Russian shipyards have recently encountered difficulties in the construction and maintenance of warships. The bureau specifically pointed to the JSC Vostochnaya Verf shipyard, which it said had to execute orders worth a total of 35 billion rubles, including the construction of 2 oil tankers, 2 small missile boats, 2 mobile terminals, and various types of maintenance vessels.

Another internal document said the Russian shipbuilding system, including equipment such as navigation systems and communication systems, had to be halted due to a lack of foreign raw materials. The deadliest point is that in addition to being unable to buy goods from Europe due to sanctions, Russia is also unable to import substitutes from domestic and Asian countries. In addition, the gunpowder required for naval artillery was discontinued.

Earlier, the U.S. Treasury Department announced that the move would bar Russia's United Shipbuilding Group from entering the U.S. financial system or dealing with U.S. companies, aimed at crippling Russia's ability to build and service warships.

German Chancellor Olaf Schultz said at a joint press conference with British Prime Minister Boris Johnson on April 8 that sanctions on Russia are effective and will profoundly affect all sectors of the Russian economy, leaving it with little competition force. "

/ By tjchinafreight ivy / Shipping

What are the ways of China’s logistics line to India?

China and India are geographically close, and the exchanges and trade between the two countries have been very good since ancient times. Their closeness is also the reason for multiple lawsuits between the two countries. In this day and age, management conflicts continue in Arunachal Pradesh and Aksai Chin regions in North India/East China. Arguably, they prefer to cooperate rather than feel concurrent with each other. Fortunately, through the annual BRICS Forum, they are easing relations and achieving better common development.

There are four ways to export from China to India: express, sea freight , land and air freight.

Express is a good way to export to India. It has various express methods such as DHL, FEDEX, TNT, etc. We will not introduce them one by one, and there will be a detailed introduction in the future. The cost of the special line in India is generally calculated as follows: RMB/KG times the weight plus the additional cost of delivery (usually sent to remote areas). It should be noted that if the Indian special line has tariffs paid by the recipient, the recipient refuses to pay the tariff and it will be automatically changed to be paid by the sender. The tariff will be reimbursed and an additional handling fee will be charged. Make a formal declaration. The packaging requirements for express delivery are similar to our usual express delivery, but one thing to note is that for extra small express goods (such as small samples), a certain volume of wooden boxes or carton packaging (with filler pads, etc.) must be added. Afterwards, the total volume length, width and height of the entire express shipment shall not be less than 40CM, and the smallest side shall not be less than 5CM. Note: India is not allowed to import beef milk and related dairy products because cows are protected animals in India! Haochuan Logistics also has a service that provides customers with fast packaging and inspection. The advantages of express delivery are fast timeliness, wide range, many goods that can be sent, full logistics tracking and control, and low packet loss rate.

In addition to express, sea and air transportation, these two lines have many customers and complete services, most of which include double clearing services.

First of all, we need to understand what is the double-clearing line. The Indian double-clearing line generally refers to the customs declaration when the goods are sent to India, and the customs clearance when they are imported after reaching India. Among them, shipping Shuangqing is an integrated transportation route that relies on ports and runs through the sea and land, including domestic and overseas customs clearance, export, import of destination countries, tax, and door-to-door one-stop logistics services. India special line is a special transportation route developed by logistics companies according to the situation of customers transporting goods to India. It has complete services and a high degree of integration, which can reduce a lot of trouble. Among them, sea and air transportation are the most perfect. The characteristics of sea transportation are that the transportation volume is large and the cost is low, but the time required is relatively long; the characteristics of air transportation are the transportation time period, the amount of goods is larger, but the price is higher than that of sea transportation, and there are more restrictions on commodities. The domestic Shuangqing line to India generally takes about a month to arrive.

The customs process in India is one of the most onerous in the world and applies to all types of goods and countries of origin. India's tariff barriers are also quite high. But for an emerging country, it's common.

India's land transportation is the cheapest, because China is not far from India, so many people choose land transportation. The amount of land transportation is large, but the timeliness is very slow. Generally, it takes more than 15 days. Some goods that require fast aging are not suitable for travel. For land transportation, merchants can choose different transportation methods according to different needs to reduce the cost of transportation. It is worth noting that the tariffs in India are very high, and merchants should prepare psychologically in advance.

/ By tjchinafreight ivy / FBA • Shipping

How to choose the FBA head journey

Buyers will be more inclined to products shipped by Amazon FBA, and sellers who choose FBA will increase the cost, and the cost will naturally be included in the product price. Whether logistics channels can be reasonably optimized has also become a key link in the product pricing market, affecting sales. Many sellers may have encountered a similar situation. Other sellers of the same product suddenly dropped their price, and the price was still greatly reduced. It's not the kind of activity that can go on for a long time. In this case, that's not the case. Loss in exchange for orders is likely to optimize logistics channels. Regarding FBA logistics channels, there are still many choices. You can choose according to your situation, so as to reduce the price of the product and win the price war.

1. Establish a FBA warehousing plan

If your product is already an FBA listing, all you have to do now is click Send Inventory; but if your product is still Merchant-Fulfilled (self-delivery), you need to change the product to FBA listing first; if you don't If you know if you need to change it, after selecting Send Inventory, Amazon will also prompt you to change it or not.

2. Prepare the products that will pass the FBA first journey (Prepare Products)

Every product that passes through the FBA first journey must be packaged as required, most of which can be packed in cartons, but some categories of products need to be packed in sealed plastic bags to avoid damage during transportation, or allow Dust runs in. At the same time, each product must be affixed with a UPC barcode (if it has joined the Amazon Brand Registry).

3.Review Shipment

Before this step, Amazon will provide the FBA warehouse address you should enter the warehouse, usually three, but sending to three warehouses will increase our logistics cost. If you do not want to enter so many warehouses, you can set the target warehouse.

4. Ready to send

If you choose a truck company for logistics, if you use express delivery, it is recommended to use UPS or FedEx, which is cooperated by Amazon. Amazon will provide a great logistics discount. Here you need to provide information on the contents, or you Does not provide direct sorting by Amazon (processing fee applies)

For example, if you have 10 boxes to be put into the warehouse, then you need to fill in one by one, which products are in each box, as well as the size and weight of each box, then you can calculate the payment to Amazon for this FBA head trip. cost of;

Next, you have 24 hours to cancel the first FBA trip. Amazon will automatically refund to your account. After the Amazon FBA warehouse receives the goods, you can check the relevant information on the inventory page in the background.

How to choose a reliable FBA first-way logistics?

FBA can provide express, air, sea, customs clearance, labeling, warehousing and other logistics services. At the same time, FBA can also provide different channel transportation methods such as double-clearance tax declaration by sea and double-clearance tax declaration by air. Sellers need to choose according to their own products, services and storage time.

When we choose the FBA Toucheng logistics company, we must first consider the dedicated line channel. From domestic delivery to the United States, it only takes about 13 days to arrive at the western port of the United States, which greatly shortens the sea transportation time. Generally, it can be signed and put on sale in about 18 days.

Logistics is very important for cross-border sellers. If you choose a bad FBA head-way logistics company, you may encounter the situation that the products cannot be put into the warehouse on time, the store is out of stock, or even the goods are lost. Therefore, we need a professional FBA head-way logistics company to ensure the timeliness and safety of our goods.

The above is about what Amazon's FBA first journey service is and how to choose a reliable FBA first journey logistics.

/ By tjchinafreight ivy / Shipping

Huiyang Shipping’s first-quarter profit tripled year-on-year

The crisis in Russia and Ukraine pushed up the freight rate of bulk carriers, and the performance of Huiyang Shipping in March and the first quarter both hit record highs.

On April 6, Huiyang Shipping announced its financial report. The revenue in March was NT$2.203 billion (approximately RMB 486 million), and the self-settled operating profit was NT$1.139 billion (approximately RMB 251 million). The monthly pre-tax profit was NT$1.175 billion (approximately RMB 259 million).

The financial report shows that in the first quarter, Huiyang Shipping’s revenue was NT$5.754 billion (approximately RMB 1.269 billion), and its pre-tax profit was NT$2.777 billion (approximately RMB 612 million), three times that of the same period last year. , a record high for the same period of the previous year, with an average operating profit rate of 48%.

Huiyang Shipping said that the global dry bulk shipping market is still affected by the crisis in Russia and Ukraine. At present, due to the surge in oil prices and the transfer of raw material importing countries to other countries for procurement, the voyage has increased. These factors may increase the freight rate. However, whether the demand for raw materials is It can be fully supplemented by other regions, and the impact of subsequent economic sanctions by various countries still needs to be continuously observed.

On the other hand, the epidemic in mainland China heated up again in late March, and the first-tier cities along the coast were shut down due to epidemic prevention, resulting in a slight decline in the market volume. However, Huiyang Shipping believes that this is a short-term impact, and there is a possibility of demand recovery sex.

In terms of fleet planning, Huiyang Shipping received the 37,800-dwt handy-sized high-specification energy-saving and environmentally friendly bulk carrier "Bunun Treasure" delivered by Imabari Shipbuilding in Japan at the end of March, and has signed a stable charter. Up to now, the company's fleet operates 139 ships, with an average age of 7 years. The fleet size and the proportion of energy-saving ships are in a leading position in the industry.

Looking forward to 2022, Huiyang Shipping still maintains an optimistic attitude. Due to the rising freight market and raw material prices in recent years, the construction cost of bulk carriers has increased by about 30%-40% on average compared with the same period last year. The number of orders on hand for cargo ships is still low, and after the new environmental protection regulations hit the road in 2023, it is expected that the elimination of old ships will make the supply of capacity even tighter, and Huiyang Shipping maintains a consistent and stable ship purchase policy, which will give it a more competitive advantage.