Air Freight or Sea Freight, Which One Would You Choose?

When it comes to choosing freight methods when you are doing import or export business, you will take a lot of elements into consideration, such as cargo weight, your budget, time, distance and type of commodity, and service like door-to-door or port-to-port. Air freight and sea freight are 2 of the main logistic ways for oversea sipping. For beginners who will ship large-scale or bulk cargo, it is essential to get to know the difference between these 2 ways. Here TJ China Freight will offer you some guidelines for how to choose your freight way, air freight or sea freight.

Air Freight vs. Sea Freight

Before you decide whether to use air freight or sea freight, you need to think about 3 questions first.

  1. Want to Save Money? As with parcels, freight cost is weight-based. If your shipment is small (up to about 50 kg) you’re better off with express freight shipping. Heavier than that, it gets more economic to go with air freight shipping. Then around the 500-kilogram mark (1100 lbs), ocean freight becomes cheaper. The differences can be staggering. For instance, a $195 ocean shipment can cost $1,000 by air. These weight cut-offs are approximate because costs don’t stay static. But you can get accurate estimates by get an inquiry from TJ  team, the best China freight forwarder offering you best shipping solutions.
  2. In a rush? Taking China to US door-to-door as a guide, express freight shipping takes about 3 days, compared to 8-10 days for air freight and 30 days or more on ocean freight. Each of these has a quicker premium option. Expedited ocean freight, for instance, can often shave 10 days or more off the transit time. Of course, there are always small ways to reduce the size, like skimping on packing or only palletizing after import, which may reduce the costs to make the air freight costs.
  3. Want your cargo reached as the appointed time? Ocean freight shipping is more likely to get caught up with long delays like bad weather and port congestion. That’s risky if it’s critical your shipment arrives by a certain date – even if that date is well after the estimated transit time for ocean freight shipping. Ocean freight moves around much more on a container ship than in the hold of a plane, so it is more likely to get damaged.

If you are facing an issue with choosing a freight forwarder for your importing or exporting to China, you can contact us for sea freight forwarding service or air freight forwarding servie. Excellent service and cost-effective solutions for your business project.

Everything About Ocean Freight Forwarding You Need to Know

If you are an entrepreneur owner who is doing cross-border business, then you will need send your cargo to your clients or buying goods from other countries, you will need a local freight forwarder to help you process the shipping, paper documents, delivery, and more. Usually, ocean freight is one of the most common ways to ship, and make sure you know things about ocean freight forwarders so that you can select the right freight forwarder to help you arrange everything well. When you are importing or exporting to China, TJ China freight is your prior option for sea freight, air freight, rail freight, amazon fba preps, door to door delivery, and the professional team is committed to shipping your cargo speedy and safer at a lower price. Below, we will list a few questions about ocean freight forwarders. Read on!

  • What is an Ocean Freight Forwarder?
  • What is Ocean Freight Forwarding Services
  • Is Ocean Forwarding Cheaper than Air Forwarding Service?
  • Does an Ocean Forwarder Charge Less than an Air Forwarder?
  • The Globally Top Ocean Forwarders in the World

What is an Ocean Freight Forwarder?

A freight forwarder is a person or company with the know-how to safely and effectively transport your freight from point A to point B. While freight forwarders don’t generally own the trucks, ships, or airplanes necessary to move your cargo, they serve as middlemen who know every step of the complicated shipping process and can ensure that your goods get to their destination. Some forwarders specialize in air freight, while others work exclusively with ocean freight. TJ China freight serves both sea freight forwarding and air freight. You can send an inquiry here to know the rates of shipping from or to China.

An ocean freight forwarder specializes in moving freight via cargo ships. This specialization enables ocean forwarders to know precisely how to complete any shipment and build the relationships necessary to get the best ocean rates, which they can then pass on to their customers.

What is Ocean Freight Forwarding Services

Despite how crucial freight is to the world economy, it’s a pretty difficult field to navigate.That’s why even the most seasoned of shipping professionals rely on a sea freight forwarder’s services for their ocean shipments. An ocean forwarder knows what goods can be shipped, the correct procedures for shipping them, all of the paperwork required for shipping, how to get your cargo on a vessel, and what to do in case something goes wrong.

That means that with the right ocean freight forwarding services, you can be confident that your freight is in good hands and worry about the more important parts of your business.

Does ocean freight forwarding cost less than air freight?

Unsurprisingly, ocean rates are less expensive than air rates. But there are tradeoffs. If speed is a priority, you may want to look elsewhere. Ocean shipments take over one month to be delivered, whereas air shipments take a few days. Reliability is also a factor that should be considered. While air shipments run on a very tight schedule, it’s not uncommon for freight ships to take longer than expected to embark. That said, there is a reason why 90% of cargo is sent via the ocean. It is the most cost effective and environmentally friendly way to send goods internationally. It’s also the best way to send oversized and hazardous items.

Who are the Top and Best Ocean Freight Forwarders?

Ocean freight is a highly fragmented market, with the top ten ocean forwarders dominating only 43% of the market.

  • Kuehne + Nagel. A clear leader, whose ocean freight revenues are estimated to be around 65% larger than its nearest rival. But in a highly fragmented market, its share is estimated at just 9.2%.
  • DHL Global Forwarding. Although coming in second, DHL’s ocean freight revenue is smaller than their air and truck operations. In 2015, DHL Global Forwarding ocean freight revenue reached $3,850M.
  • Sinotrans.  China’s largest freight forwarder is listed on the Hong Kong stock exchange but wholly owned by the government. Much of its ocean freight business takes place in the coastal cities of Eastern China.
  • DB Schenker. Headquartered in Germany, the freight giant employees nearly 100,000 employees around the world. In 2015, it’s ocean freight volumes were 1,942m TEUs.
  • DSV. The Danish company’s acquisition of another leading sea forwarder UTi approximately doubled ocean freight forwarding revenues of DSV a year ago. Their 835,487 TEUs of ocean freight in 2015 brought in $1,7580 m in revenue.

Check the full list of top freight forwarders 2022 here. Need China freight forwarder? Contact us today, and get an instant quote!

Why your NVOCC should be FMC licensed

Why your NVOCC should be FMC licensed
Why your NVOCC should be FMC licensed

Choose NVOCC: Make sure it is FMC licensed

Given the number of NVOCCs in the world, choosing the right NVOCC for you can be a daunting task. How do you know which one is best for you? The first and most important step in this process is to ensure that your NVOCC is licensed by the Federal Maritime Commission (FMC).

What is NVOCC?

Let's start with the basics. N VOCC stands for Non-Vessel Operating Common Carrier. Its role includes contracting sea freight and shipping companies to move cargo from one point to another. It has agreements with carriers to provide its ships with a fixed number of slots each year in exchange for low rates.

NVOCCs are the largest traders in the container shipping industry. It issues bills of lading, takes responsibility and liability for the goods, and can also own and operate its own or leased containers.

NVOCCs and Freight Forwarders

NVOCC and freight forwarders are OTIs (Ocean Transportation Intermediaries). But they are not synonyms. NVOCCs can issue their own bills of lading, freight forwarders cannot; they can only work against carrier (or NVO) bills of lading.

Perhaps the most important difference is that, in some cases, NVOCC accepts all responsibility and liability for the goods. On the other hand, freight forwarders are not responsible for this. In addition, freight forwarders can act as agents or partners of NVOCC, but the reverse is not possible.

What does FMC do?

The Federal Maritime Commission is the U.S. federal agency responsible for regulating international shipping by U.S. ocean freight. FMC was established in 1961 to take over the responsibilities of the Federal Maritime Commission and has since been responsible for administering the regulatory provisions of shipping law. Today, it has more than 6,250 NVOCC registrations in its database.

What does it mean for NVOCC to have an FMC license?

With the FMC license, NVOCC can negotiate contracts with steamship companies. It also allows them to confirm their own House Bill of Lading as a Carrier Bill of Lading. For customers and suppliers, this is proof that the NVOCC is legally conducting business within the regulations set forth in the United States.

What happens if you work with a non-FMC licensed NVOCC?

This is the equivalent of hiring an unlicensed and uninsured contractor to work on your property. If something goes wrong, you have nowhere to go for help and support. In a more drastic way, basically, the only rules unlicensed NVOCCs have to worry about is getting paid and doing minimal work for the carrier/customs to accept your cargo as they are not subject to the regulations set by the FMC and obligations.

The busiest seaport in the world

The busiest seaport in the world
The busiest seaport in the world

The busiest seaport in the world

A common question we see in the shipping world is "What is the busiest seaport in the world?" The size and scope of the shipping industry is difficult to understand, which is why working with experts can be so helpful for businesses. At TJ chinafreight, we work with various manufacturing and other companies to meet their transportation and logistics needs.

Currently, the busiest seaport in the world is Shanghai Port (according to Marine Insight). The name is based on the daily container flow through the port, meaning the biggest ports are not always the busiest. The port is located in the Yangtze River and the East China Sea with convenient transportation and consists of a deep sea port and an inland river port. The total area is 1,397.5 square miles! Shanghai beat Singapore to become the world's busiest port with 37.1 million TEUs of cargo in 2019 and is considered the world's fastest-growing economy. About 2,000 container ships depart from Shanghai Port every month.

Learn about the harbour

A seaport is the place of origin, transshipment or arrival of seaborne cargo. Simply put, maritime transport is the movement of goods, raw materials and commodities across the world's oceans and waterways. More than 90% of the world's goods are transported by sea. Without shipping, the world economy would come to a screeching halt—without electronics, manufacturers without raw materials, and store shelves half empty.

Ships are one of the oldest forms of transportation. Today, ships still sail through the former sea trade routes. Interested in learning more? TJ chinafreight would love to hear from you!

3 key tips for reducing costs when transporting heavy loads

 

Container Cargo ship in the ocean.
Container Cargo ship in the ocean.

Due to the large carrying capacity of ships, sea freight is the best way to transport heavy or oversized cargo. Different containers of various sizes can accommodate oversized sea freight. The smallest container height is 20 feet and the largest available is 45 feet.

If you are shipping heavy and oversized shipments by sea, we recommend that you ship with Full Container Box (FCL) to maximize your costs.

Tips for reducing costs when transporting heavy loads

Shipping heavy and oversized cargo can get very expensive. But there are ways to keep costs down.

1. Adjust the packaging

Packing can expand the cargo even further, and sometimes this is not recommended if you want to save on shipping costs. However, you can adjust the packaging by reducing packaging, packing more product into one container, or deflating the plastic packaging. These can reduce the space your cargo takes up and reduce costs accordingly.

2. Consider bulk shipping

If you're a frequent shipper, you can make the most of your shipping costs by maximizing less frequent orders. For example, consider shipping orders in bulk rather than weekly. This scheduling strategy will reduce your vessel and cost per shipment. However, for time-sensitive cargo, this may not be a viable option.

3. Correct container type

There are other costs associated with different sized containers. For example, moving a 40-foot container is more expensive than driving a 20-foot container. So it will help if you have a good idea of ​​the size of the selected container.

International Cargo Booking Service from China

International Cargo Booking Service from China
International Cargo Booking Service from China

Booking is simply the process of booking a space for your cargo from a shipping company in order to use their shipping company. This article explains some of the main steps to take before booking a LCL shipment with a freight forwarder. These precautions help you handle LCL shipments with your forwarder for smooth delivery and cost savings.

Cargo booking regarding transit time

First of all, don't expect the goods to arrive faster than the whole box. As a reminder to exporters, when booking LCL shipments with a forwarder copy, the cargo will be stuffed into the container as the cargo is a Less Container (LCL), once the forwarder has received enough cargo to make the container 'full' instead Receipt. The place of receipt may be close to the port of loading or container freight station, far from the port of loading depending on where your factory is located, export cargo is booked.

Second, they may have one or more transshipment ports before the goods reach their final destination. There may also be a delay of one or more days at the transfer point. Before appointing a freight forwarder, you need to have a clear understanding of the arrival of the goods at the destination. Have your forwarder provide you with the closing date (container packing date), the planned vessel schedule, the vessel schedule at the transshipment port (if any) and the estimated time of arrival (ETA). Once the cargo booking is delivered to the forwarder, the arrival schedule is properly monitored according to the planning details given by them.

Get a quote before booking

If any shipping is involved, what is the cost of inland shipping? How much is the sea freight to the final destination port, etc.? As the cargo booking is for Less Container Load (LCL), the freight forwarder quotes a fee per cubic meter basis (CBM basis). Learn how the CBM is calculated if the weight is more.

Destination service fee

Get written information from your local freight forwarder about "the amount of the fee, what their counterparty at the destination charges your buyer." This is important because in the LCL world, different freight forwarders charge different "delivery note fees" to the consignee. Because, as the forwarder gets to know each other at the port of loading and the final destination, the price quoted at the port of loading may be lower, but the “freight” price at the final destination is higher. Here, once the excess is charged to the consignee at the port of discharge as a "Bill of Lading fee" and a certain "rebate" is refunded to the forwarder at the port of loading!

Booking type

Shipping incoterms are international standard codes used to determine when and where to transfer cargo bookings between suppliers and importers.

For example, FOB (Free on Board) only includes transportation from the factory to the port of destination (ie, Hong Kong). In addition, FOB also includes all export formalities that are necessary to ensure that the goods can be exported legally. However, from the port of destination, you must arrange for transshipment to the final destination.

You can also pre-order DAP (Delivered in Place), which includes shipping from a factory in China to a designated address overseas. For example your office or warehouse when the cargo is booked.

Brazil removes import duties on some goods

Affected by the epidemic in the past two years, Brazil's poor population has increased, the proportion of the middle class has shrunk, and the inequality between the rich and the poor has widened.

Inflation has caused the prices of basic materials in Brazil to rise again and again, and the prices of canned food, preserved food, olive oil, vegetables, beef, coffee, etc. have all continued to increase. In addition to Brasilia being the most expensive city, Salvador, Curitib and Belo Horizonte also saw very big price increases.

Wages can't keep up with inflation, and Brazilians have begun to reduce expenses, change the family diet, replace more expensive beef with chicken, sausage, cream, etc., and reduce life and entertainment activities.
In order to fight inflation and stabilize prices, Brazil recently announced a reduction in import tariffs on some commodities.

Brazil removes import duties on some goods
Brazil removes import duties on some goods

The Executive Management Committee (Gecex) of the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy announced:

1. From now until the end of this year, import taxes on seven products will be cancelled, including: ethanol (the original import tax is 18%, the same below), coffee (9%), margarine (10.8%), cheese (28%) ), pasta (14.4%), sugar (16%), soybean oil (9%).

2. From April 1 to the end of this year, the import tax rate levied on electronic products and mechanical equipment will be reduced by 10%. This measure aims to promote the purchase of equipment for industrial production and reduce the prices of some technical items. In March last year, the Brazilian government cut tariffs on capital goods and telecommunications imports by 10 percent. Overall, the cuts will be 20%.

The changes came into effect after they were published in the Brazilian Federal Official Gazette on March 23. Combining all the tax cuts, the tax cuts generated this year are around R$ 1 billion.

However, the skyrocketing sea freight has also affected the Asia-Brazil route. The current sea freight is 5.7 times higher than before the outbreak!

Maersk warns container shipping market to return to normal

Maersk warns container shipping market to return to normal
Maersk warns container shipping market to return to normal

Although Maersk's first-quarter results beat expectations, the shipping giant warned that the global shipping industry may gradually return to normal in the second half of the year.

On April 26, Maersk reported financial results for the first quarter of 2022, with revenue of $19.3 billion, underlying EBITDA of $9.2 billion, and underlying EBIT of $7.9 billion. Maersk said, "The first quarter results exceeded expectations," the quarter's results were driven by the continued abnormal conditions in the ocean shipping market, compared with the first quarter of 2021, the volume fell by 7%, and the freight rate increased by 71%. Maersk said: "The strong performance stemmed from exceptional market conditions within the container shipping market, with volumes down 7% compared to the first quarter of 2021, while freight rates increased by an average of 71%."

Given the strong performance in the first quarter, Maersk expects current market conditions to continue in the second quarter and raises its full-year 2022 outlook. Maersk once again significantly raised its full-year profit forecast as last year. Maersk expects full-year 2022 actual earnings before interest, tax, depreciation and amortization (EBITDA) to be $30 billion (previously expected to be $24 billion), an increase of 25%. Actual EBIT was $24 billion (previously expected to be $19 billion) and free cash flow would exceed $19 billion (previously expected to be around $15 billion).

"The already tight supply chain situation deteriorated further in the first quarter of this year, with the Russian-Ukrainian conflict adding to uncertainty," Maersk Chief Executive Detlef Trefzger said in a statement. "The current market situation is expected to continue in the second quarter. Going down, combined with higher contracted freight rates, we expect full-year 2022 results to be stronger than previously expected."

It should be noted that, unlike last year, the shipping giant also warned that this year's container traffic may actually decline, and the Russian-Ukrainian conflict and high inflation may have adverse effects on the global economy. The current performance forecast is still based on the assumption that the marine business will return to normal in the second half of 2022. Although it continues to be optimistic about the container shipping market this year, Maersk also expressed concern about global container demand based on the decline in freight volume in the first quarter, and lowered its outlook for global container demand growth from 2-4% to -1/+1%.

The shipping industry has made record profits in recent quarters, as surging consumer demand, blockages at major global ports due to the pandemic and the recent closure of airspace following the conflict between Russia and Ukraine have kept prices up.

Clarksons data shows that there are currently 861 container ships on order, with a total capacity of 6.57 million TEU, equivalent to 26.4% of the existing fleet. The data shows that the new ships ordered by the shipping giants in large quantities last year are also about to start delivering. This means that the state of high freight rates in the container shipping market will be difficult to sustain.

Shipping from China to Vietnam

German and Chinese flag pair on desk over defocused background. 
German and Chinese flag pair on desk over defocused background. 

Shipping from China to Vietnam

Sea freight from China to Vietnam

Sea freight from china to vietnam
Sea freight from china to vietnam

LCL (LCL)

By LCL shipping, your cargo shares container space with other companies' products imported from China to Vietnam. LCL is often the most cost-effective method for businesses shipping smaller shipments.

Full Container Load (FCL)

With FCL shipping, you have exclusive use of the shipping container. Your shipment will be completely sealed in the container from origin to destination. FCL shipping is not only faster than LCL, but also cheaper.

Air freight from China to Vietnam

Air freight from china to vietnam
Air freight from china to vietnam

Air freight is by far the fastest way to export from China to Vietnam. Some shipments can be completed within four days. However, this is the most expensive shipping method.

Trucking from China to Vietnam

Now, let me introduce you to trucking from China to Vietnam.
You can use it if you want to ship goods from Yunnan Province to Vietnam.
Trucking from China to Vietnam is very flexible.
This is one of the main advantages.
For example; you can ship to very small towns without airports, oceans or rail lines.
With this, TJ chinafreight we can provide door to door shipping from China to Vietnam.
That is, you can visit places within Vietnam.
guess what?
This will work in your favor - cost-effective, convenient and reliable trucking from China to Vietnam.
The process here is very simple.

How long does it take to ship goods from China to Vietnam?

The time it takes to ship goods from China to Vietnam, as well as the price, are often important factors in determining the shipping method.

Of course, air freight is the fastest option, with transit times between China and Vietnam ranging from four to eight days. On the other hand, shipping time by sea can vary greatly depending on the distance between the origin and destination ports. You can expect the shipping duration to be between 7 and 31 days.

The following are examples of transit times for routes operated by Shipa Freight between China and Vietnam:

Shanghai to Ho Chi Minh City - 8 days FCL, 14 days LCL
Guangzhou to Ho Chi Minh City - 14 days FCL
Shenzhen to Ho Chi Minh City - 24 days FCL
Huangpu to Ho Chi Minh City - 24 days for FCL, 16 days for LCL
Lianyungang to Haiphong - 31 days FCL
Jiangmen to Haiphong - 7 days FCL, 5 days LCL
Shanghai to Haiphong – 13 days FCL, 7 days LCL
Dalian to Ho Chi Minh City - 31 days FCL
Qingdao to Haiphong - 7 days FCL
Tianjin to Haiphong - 13 days FCL
Zhongshan to Ho Chi Minh City - 27 days FCL

While the flight from China to Vietnam only takes a few hours, the entire shipping process takes days. The transit time for air cargo includes customs and security inspections, as well as loading and unloading of the cargo.

Below is an example of transit times for a typical air freight route between China and Vietnam:

Shanghai to Ho Chi Minh - 4 days
Shenzhen Ho Chi Minh – 8 days
Shanghai to Hanoi - 5 days
Beijing to Hanoi - 8 days
Guangzhou to Hanoi or Ho Chi Minh - 7 days

China and Vietnam Customs Clearance

Clearing customs can seem like a daunting process, especially if this is your first time exporting from China to Vietnam. A freight forwarder can take the load off you by providing the necessary guidance and expertise to ensure your shipments comply with the rules.

What is the customs clearance process for goods from China to Vietnam?

you have to provide information about certain things,

  • Origin and destination of the goods
  • Importers and Exporters Tax Information
  • Package quantity, volume, weight and product description
  • Tax payable

You need to provide the following documents,

  • Commercial invoice
  • Bill of lading
  • Packing list
  • Any required proof (for restricted items and special approvals)

Shipping from China to Germany: The Complete Guide

Knowing the rules for importing goods into Germany is the first step when you want to import.
Not only will you avoid the hassle of customs authorities, but they will clear customs faster for you.
Those rules are what I'm going to show you.
So let's get started.

German and Chinese flag pair on desk over defocused background. 
German and Chinese flag pair on desk over defocused background. 

Requirements for German imports from China

Germany has many import requirements for Chinese importers, including an extensive list of prohibited items, required documents, and duties and taxes due upon arrival at German customs.

German import taxes and duties

German customs impose import duties and duties on all goods brought into Germany from outside the EU, including China. The exact fee you'll pay depends on the type of item you're shipping, most items are taxed at 19%, with the exception of agricultural products, which are taxed at 19%.
The exact taxes and duties payable will depend on the TARIC code (community combined tariff).

Sea freight from China to Germany

Sea freight from china to germany
Sea freight from china to germany

Refrigerated Shipping from China to Germany

Refrigerated shipping is a convenient way to import temperature-sensitive items.
This includes agricultural products such as flowers, fruit and fish.
Reefer containers are designed to help heat or cool your cargo.
This prevents your cargo from spoiling before it reaches its destination.
The important thing to note here is that the refrigeration process does not cool or heat your cargo, it keeps it at a given temperature.
Therefore, you should first ensure that the cargo has been heated or cooled to the desired temperature.

China to Germany FCL

FCL or Full Container Load means that your cargo fills the entire 20ft or 40ft container. If you are shipping in bulk, you can save time and money by shipping FCL. The FCL price is the same whether or not your container is completely full.

China to Germany LCL

LCL or less than container load means your cargo will not fill the whole container and will be shipped with other boxes or pallets. Please note that when you ship LCL, your shipments need to be consolidated at the port of origin and unpacked at the port of destination.
This is the reason why LCL shipping takes several days than FCL shipping.

Ro-Ro shipping from China to Germany

Importing vehicles or machines from China is an area of ​​possible interest for you.
This is because these imports have increased.
If you are considering shipping these goods, rolling shipping needs to be a safe mode for your shipping.
Ro-Ro shipping is where a vessel design is modified to include ramps mounted on the sides or back.
This allows your cargo to be loaded and transported safely.
Use this mode to prevent shipping in containers, including securing containers.

Air Freight from China to Germany

Air freight from china to germany
Air freight from china to germany

If you need your goods quickly and use a freight forwarder, China Air Freight is a great alternative to express shipping, but there are some important details you need to keep in mind.
Air freight is not a door-to-door service, nor is it "all-inclusive", so there will be additional work and costs in logistics to and from the airport and customs clearance in Germany. Having said that, the sum of these fees will be less than the courier fee you pay, and if you use our China door to door service, the work will be managed by the freight forwarder, making air freight a great alternative to courier shipping.
As with express, the best price for air freight is for loads between 300-500 kg.

Rail freight from China to Germany

Surprisingly for most importers, rail freight is a good option for importers shipping goods from China to Germany because the transit time is faster than sea freight and, in the right conditions, The cost is also lower. The condition is that the cargo must be containerized to take advantage of rail freight, so this is not an option for anyone who cannot place an order for a container load. This makes rail transport from China ideal for bulk, dry, liquid and mechanical transport.
There are multiple train hubs in China and Germany, if you don't need very fast freight, or air freight is too expensive, consider rail freight.